Your Inform system is preset to drive transactions into the appropriate G/L accounts. The following are several setup utilities that control how a business process is translated into an accounting entry.
Important: Mapping will override the settings in the G/L control table.
This utility points specific processes to G/L accounts in order to generate transactions accurately. For example, the account specified in the A/R Cash Account field is used to record the amounts of monies applied to customer accounts. This function is branch sensitive and will use the appropriate account suffix based on the transaction branch. Please do not alter any G/L Control Table settings without first consulting DDI Support.
These codes can be customized by the user to assess ancillary, non-merchandise charges to customer invoices. Each code is pointed to a specific revenue account to separate the amount from the default sales account. For example, a labor charge may be added to an invoice and pointed to a Labor Sales G/L account. Keep in mind that miscellaneous charge codes are useful for revenue only and there is no ability to post a corresponding cost. This function is branch sensitive and will use the appropriate account suffix based on the transaction branch.
For multi-branch organizations, this utility works with other settings to drive transactions into branch- specific G/L accounts. Establishment of a unique Branch G/L Suffix for each store or operating unit ensures that accounting data is maintained separately. A second important function is the establishment of multiple bank accounts for different purposes. A bank account can be reserved for point of sale transactions only. Please do not alter any Company Branch settings without first consulting DDI Support.
This function works with the G/L Control Table to push inventory, cost of sales and sales revenue transactions into alternative accounts. For instance, there may be multiple product categories such as Copper, Aluminum and Nickel.
Establishing a separate product line for each category, with separate G/L accounts, will enable the user to view inventory level, revenue, cost and gross margin separately. Another use of Product Lines is to prevent posting to the non-inventory account by instructing the system to use the same account for a debit and credit transaction. Refer to the example below.
Setting a G/L suffix is helpful for organizations maintaining multiple inventories in the same location to align the reduction of inventory with its cost of goods when a sales invoice is posted.
Sales Tax billed to customers may be accumulated into a single liability account or multiple accounts depending on the various agencies involved. When tax is billed on a sales invoice, the applicable liability account is credited. When tax is remitted to the state agency, the same liability account will clear out.
The account established in the Expense position should be Inventory (for merchandise suppliers) or an expense account (for other vendors). The account established in the Liability position should be Accounts Payable. When entering a positive dollar vendor invoice, the system will debit the expense and credit the liability. The same liability will be relieved at the time the invoice is paid. Any vendor invoices may be assigned to an alternate expense or liability account without affecting the defaults.
The system default is to post a transaction between Inventory and Inventory Variance (as specified in the G/L Control Table field “Inventory Adjustments”). Establishing reason codes allows each adjustment to post to more targeted account. For instance, “Merchandise Donation” could be pointed to the Donations & Contributions G/L account. This function is branch sensitive and will use the appropriate account suffix based on the warehouse of the adjustment.