Setting up accounting parameters

Related topics

The following programs in Distribution are involved in the set up:

• Work with logistic pseudo accounts (DIS Pseudo account table)
• Work with fixed accounts
• Work with accounting defaults
• Work with inventory transactions

When you set up the accounting parameters, you should define the information in these tables in the order described above.

Retrieval of account number

The account structure in the General Ledger (G/L) is defined in Financials. You can use between one and eight account parts. Each of these can contain from one to twenty positions, but the maximum length of the account string must not exceed thirty positions. Before you start to define the accounting in Distribution, you must be acquainted with the account structure in Financials.

DIS pseudo account codes are the basis for all accounting created in Distribution. These codes make the connection to the real account numbers, which will be transferred to the G/L in Financials. The pseudo account code connection to the real account number is established in Work with logistic pseudo accounts.

There is no set sequence for setting up your account numbers. Depending on your company structure and requirements you can either establish your account numbers in Distribution first and then enter them in Financials or vice versa. They must, however, exist in both systems. Otherwise, the accounting transactions from Distribution will not be posted in Financials. Prior to establishing the account numbers you must decide information concerning account parts and lengths in Financials, which is done during the installation process of Financials.

Account structure in FIN

The establishment of the account structure in Financials is defined in the G/L control file. At installation you define how many account parts you want to use and the length of each account part. You also decide which account part will be your Main account part. The main account part is the controlling factor for all other account parts.

As stated above you can then, if you wish, establish the account number that will be referred to in Work with logistic pseudo accounts for the account parts you defined in the above section. For more information about setting up account numbers in Financials, see About working with the chart of accounts.

The A/R and A/P control account numbers for Distribution are created in an entirely different way than the other account numbers. This is taken care of solely within Financials, namely in Financials’ Work with pseudo accounts. The only similarity this pseudo account file has with that in Distribution is that they are both dealing with account numbers. For more information about Financials’ pseudo account file, see About working with pseudo accounts.

Note: You do not have to establish any account number information in Distribution for the A/R and A/P control accounts if Financials is installed.

Account structure in DIS

Within the Distribution system there is a substantial number of ways to create different accounting transactions from Distribution to the G/L in Financials.

Two main methods are available to retrieve the logistic pseudo account for each account part of each transaction:

• Fixed accounting
• Table value dependent accounting
  • Transaction type specific accounting
  • Table value default accounting
  • Table value default accounting using Accounting matrix. See About setting up the accounting matrix for more information.

The definition for the generation of accounting transactions is defined in the Work with transaction types program. In the account part fields contained in this program, you can enter a fixed account part code or a reference number of a table (see Connect accounting parameters to transaction types).

For each code or reference number that you enter in the account parts of a particular transaction type, a corresponding logistic pseudo account code should be associated with it via one of the methods above. This pseudo account code should also have a corresponding account number that will be transferred to the Financials system. You must, therefore, keep in mind the account number length associated with this code when completing the account numbers in Work with logistic pseudo accounts. See Set up pseudo accounts in Distribution.

Fixed accounting

The Fixed accounting method is used when you only want to have one value accounted in the account part, i.e. you want to book one account in this account part for all bookkeeping transactions created based on this transaction type. The method is generally used for main accounts in Financials.

If a fixed account code is entered in any of the Account part 1 – 8 fields in Work with transaction types (see Connect accounting parameters to transaction types, step 2), the system then refers to Work with fixed account where it retrieves the pseudo account. The system then goes to Work with logistic pseudo accounts where it retrieves the real account number that is put into the Bookkeeping transaction file, which is transferred to Financials. When the setup has been completed, a cross-reference list can be printed to check that the defined accounting information results in valid account combinations in Financials before the accounting transactions are transferred to Financials. See Print accounting x-ref list. Another option besides the cross-reference list printout is to use the Account mapping function in Work with transaction types. See View accounting mapping information.

Table value dependent accounting

The Table value dependent accounting method is used when you want to have the value in the account part to vary based on value entries in a table.

If the number of a table is entered in any of the Account part 1 – 8 in Work with transaction types, (see Connect accounting parameters to transaction types, step 2), the system refers to the relevant table specified below (see section Tables that can be used). When referring to a table, the real account number, via the logistic pseudo account, is determined by the actual value from that table associated with the actual transaction. For example, if the Warehouse table is referred to, then the warehouse code will be used to find and retrieve the logistic pseudo account in Working with accounting defaults for warehouses. See Set up accounting defaults in Distribution.

Transaction type specific accounting

The Transaction type specific accounting method is used when you want to have the value in the account part to vary based on value entries in a table, but in a uniquely way for the transaction (similar to Table value dependent accounting where each table results in a default account).

For each DIS transaction type contained in Work with transaction types, you can define a specific logistic pseudo account for each of the table values in the selected controlling table. This can be defined by selecting the Accounting information option on the Work with transaction types main panel.

This method of defining accounts is generally used when the same table (e.g. Item group table) should give specific account numbers to the same account part for the specific transaction type. See Define transaction type specific table dependent accounting.

Table value default accounting

With the Table value default accounting method you have the possibility to enter a logistic pseudo account for each table value within a table for each account part. These table values are not connected to any specific transaction type and will be used if no specific table value is defined, as described in section Transaction type specific accounting above.

This method is used when the same table (e.g. Item group) should give the account number to a certain account part based on the values in the referred table. See Set up accounting defaults in Distribution.

Table value default accounting using Accounting matrix

This accounting method is used when you want to have the value in the account part to vary based on the value entries in a combination of tables, i.e. the same as for the Table value dependent accounting method, but with values in more than one table controlling the accounts. The Accounting matrix functionality allows two- or three-dimensional table entry combinations to be defined using an accounting matrix code (ranged 60-89). The defined accounting matrix entries can then be assigned to an account part in the DIS transaction type.

For detailed information, see About setting up the accounting matrix.

Tables that can be used

The different tables that can be used to define accounting rules are:

Note: All tables cannot be used for all transaction types. The ones that are valid for each transaction type are displayed when the type is maintained.

Note: Cost centre is valid for a number of transaction types, there is, however, no table behind to control the pseudo account. If cost centre is used in an account part in the transaction, the value from the Cost centre field in the Sales order header, or Purchase order header, will be used.

Enquiries and printouts

• Logistic pseudo accounts enquiry
• Fixed accounts enquiry
• Accounting defaults enquiry
• Transaction types enquiry
• Transfer groups enquiry
• DIS pseudo account table printout
• Fixed accounts table printout
• Accounting defaults table printout
• Transaction type table printout
• Transfer group table prinout

Related topics

• Set up the accounting environment in Financials
• Set up transfer groups
• Set up pseudo accounts in Distribution
• Set up fixed accounts in Distribution
• Set up accounting defaults in Distribution
• Connect accounting parameters to transaction types
• Define transaction type specific table dependent accounting
• Print accounting x-ref list
• About setting up the accounting matrix
• Routines in which accounting transactions are created
• About working with the chart of accounts
• About working with pseudo accounts