|
|
|
|
General Ledger Account Number Segmentation
The General Ledger account number can now be set up to accommodate for many different ways of analyzing financial information. The General Ledger account number can comprise up to four segments, and can be constructed such that each segment can be numeric, alphabetic, or alpha-numeric. The account code can comprise up to 24-characters, and the segments within it can be any size, providing that the total size of all four segments is 24 characters or less. In order for account segmentation to become a valuable reporting and analysis tool, some additional system configuration and maintenance of journal entry postings is required. To take advantage of reporting on a “per segment” basis, transactions must be broken down and posted in detail to the appropriate segments of multiple General Ledger accounts. For example, when posting a telephone bill, a single segment posting might require only two journal entry lines. If that same telephone bill is applied to multiple segmented accounts, the expense portion of the entry would need to be broken down into many journal entry lines and applied to specific segmented accounts. While the ability to create Allocation Accounts that automatically disburse the transaction to many accounts on a percentage basis can alleviate much of the effort involved in creating complex entries, segmented accounts will require more effort than posting to a single segment account. Note that you do not need to replicate segment structures throughout the General Ledger Chart of Accounts. It may be sufficient, for example, to use only two segments for sales accounts, and three segments for expense accounts, even though all accounts will display the default number of segments established in System Setup. The values in the “unused” segments can be left blank or zero. Allocation Accounts The purpose of an Allocation Account is to automatically distribute the value of a transaction line across a number of accounts on a percentage basis. Generally, Allocation Accounts are used in conjunction with "segmented" accounts. Allocations can be created and associated with suppliers, customers, and inventory sales departments (or used directly in the General Ledger Journal Entry function). When creating an allocation, many accounts can be added, and each account added may have a percentage assigned - with the overall allocation totaling 100%. When used, an allocation will take the amount to be posted and spread it, by percentage, across multiple accounts. The most common use of this functionality is to automatically spread the value to be posted across multiple segmented accounts. Line items within an allocation may be assigned a negative percentage value (causing the resulting posting to switch from debit to credit, or vice-versa). Line items within an allocation may have a value that exceeds 100%, providing that the total of all the line items still equals 100%. Allocation Accounts can also be contain accounts with a “zero” percentage value assigned. In such case, the journal entry will be presented (with AutoPost OFF), in order for the user to decide which accounts to use as each posting is made. Allocations do not require a division or currency designation. These attributes are derived from a user's current division, or a customer or supplier's currency. When posting journal entries manually, allocations can be used with any valid division or currency, and the accounts are created automatically as required. Allocation Accounts can be assigned and used in the following areas:
Customer Module General Ledger Receivables Account Used to indicate the General Ledger Receivables Account that should be updated whenever the customer makes a purchase or a payment, or an adjustment is made to their account. This permits you to maintain numerous Accounts Receivable sub-ledgers (such as Trade Receivables, General Receivables, Special Receivables). In order to do this, one must first establish the necessary accounts within the Accounts Receivable group in the General Ledger. If activity exists within a customers account, this account number may not be changed. Note that in cases where a bill-to/ship-to relationship exists, the account designated on the "bill-to" customer profile will be utilized. Allocations may not be associated with the customer’s G/L Receivables Account. General Ledger Income Account When "Override Sales Account" is enabled in System Setup, this General Ledger Income Account will be updated whenever the customer makes a purchase or a credit invoice is applied to the customer's account. This account supercedes the Income Accounts (Sales Accounts) that are ordinarily used when items are purchased from inventory. An allocation Account may be specified if desired. Bill-to/ship-to relationships are ignored, and income is posted directly to the account designated on the "ship-to" customer profile, so that you may produce General Ledger financial reports that reflect purchases on an individual customer basis. Supplier Module General Ledger Payables Account Used to indicate the General Ledger Payables Account that should be updated whenever you make a purchase from, or a payment to, a supplier - or an adjustment is made to the account. This permits you to maintain numerous Accounts Payable sub-ledgers (such as Trade Payables, General Payables, Special Payables). In order to do this, one must first establish the necessary accounts within the Accounts Payable group in the General Ledger. If activity exists within a suppliers account, this account number may not be changed. Inventory Module Mini-Browse and Full Screen Browse When multiple warehousing is active, a new “All Warehouses” checkbox has been added to both the Mini-Browse and Full Screen Browses. When checked, items held in all warehouses can be browsed - the part number appears with the two-character warehouse prefix indicating the particular warehouse in which the inventory is held. Note that this functionality is only available to those users who are given the authority to switch warehouses.
Return to Home Page |
|
