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Working with pseudo accounts

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There are five main ways in which to use pseudo accounts. They are as follows and described in detail below:

For more information, see the Panel help for the Work with pseudo accounts program.

Lengthy accounts

Financials provides a function that enables you to replace lengthy account codes with an abbreviated pseudo account, which can be defaulted for standard postings. This function will speed up data entry and reduce the risk of posting errors.

Frequently used accounts

The system provides a function where you can set up pseudo accounts to be defaulted at manual invoice and payment entry, so that instead of entering the account and the amount you need only enter the amount next to the applicable defaulted account.

Frequently used accounts can be set up on the following levels:

  • Document type level, where you connect a catalogue consisting of one or several pre-defined pseudo accounts. This makes it possible to alternate between the defaulted pseudo accounts depending on the type of invoice you enter.
  • Business partner file level, meaning that the system proposes different pseudo accounts depending on the debtor/supplier you are working with.

Note: Pseudo accounts on debtor/supplier level are only defaulted at payment entry if a pseudo catalogue has been connected to the payment document type.

Contra accounting

Pseudo accounts are also used to create automatic G/L postings from the A/P and A/R ledgers. Financials will minimise the entries staff have to enter by generating automatic postings to the General Ledger for items such as discounts allowed and received, exchange rate gains or losses and bank postings at payment entry.

These pseudo accounts are a combination of a fixed code that you define in Work with document types, as well as values from other tables/programs. As the pseudo accounts used for contra accounting consist of a fixed and a variable part you are able to use a greater range in which to define the pseudo accounts you want to contra automatically. You have the possibility to steer the accounting on several table values, for example, currency, bank, voucher type, document type and A/R and A/P group.

Control accounting

To fully integrate the A/R and A/P with the General ledger, postings for debtors’ and creditors’ control accounts are always automatically generated, so that these transactions are posted to the correct accounts within the General ledger.

The pseudo accounts used for control accounting also consist of a fixed and a variable part, thus allowing you greater flexibility in which to define the pseudo accounts you want to contra automatically. As with contra accounting you also have the possibility to steer the accounting depending on the following table values found in the A/R and A/P group.

The accounts in the Account file that are connected to control pseudo accounts will not be available for normal manual entry, once they have been used for control accounting. Also, accounts in the Account file that are dedicated to postings in only one currency, i.e. currency accounts, may not be used for control accounting.

Note: You must create these pseudo accounts when installing the system.

Error accounting

You must also set up the general error pseudo account XERROR. The error account is used under the following circumstances:

  • If the pseudo accounting for automatic postings created by the system has not been set up correctly, these postings will be posted to the error account at update.
  • If cost centre substitution is used in the batch interface and no cost centre has been defined for the debtor/supplier in the Business partner file.
  • When you order a forced update through the journal maintenance routine of a journal where a debit/credit difference exists (caused by incorrect postings from the general interface) the variance will be posted to the error account.

Note: For control purposes the balance on this account should be checked on a regular basis.

Enquiries and printouts

  • Pseudo account file enquiry
  • Pseudo account file list

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