Accounts Receivable - Distribution Codes
FunctionThe Distribution Code maintenance task allows for the creation, modification, deletion, inquiry and listing of distribution codes used to determine general ledger postings during the Accounts Receivable billing and Sales Order entry functions.
=> To access this task... Select Distribution Codes from the Inquiry and Maintenance menu.
Distribution Code Maintenance
Distribution codes are assigned directly to customers in the Customer Master File and optionally, in the Inventory Item Master File. This allows you to associate multiple receivable accounts with the customer base, if desired.
About the Fields
To enable edits to the form select .
In the Distribution Code field...
Distribution Code Inquiry
See Query Functions.
When the distribution code is set up, the distribution code information is displayed. If the distribution code does not exist, it will be treated as a new code and the fields below will be blank for the user to enter or select from the list available.
In the Description field...
In the Account Receivable Account field... This account will normally be the simple invoices and invoices generated by the Order/Invoice Processing module. The General Ledger module must be installed to access the GL account fields.
In the Cash Account field... Accounts receivable control account that is debited during the update process for conversion invoices. This account is used in posting cash sales transactions generated by the Sales Order Processing module.
In the Sales Account field... This account is used in posting revenue to the general ledger.
NOTE: When the Order/Invoice Processing and Inventory Control modules are installed, the selection of a distribution code for revenue posting is dependent on the Distribute Sales By Item parameter in the Accounts Receivable Parameter Maintenance task. If this parameter is checked, the revenue accounts are determined by the distribution code associated with each inventory item. If the parameter is unchecked, these accounts are taken from the distribution code that is associated with the customer, which becomes the default value for the Order/Invoice header.
In the Discount Account field...
NOTE: This account is used for sales discounts; it is not used for terms discounts. It will also post transactions to the discounts allowed, where the posting amount is taken from the overall invoice discount that is available in the Order/Invoice Processing module.
In the Freight Account field... This account is used in posting freight revenue that is entered on invoices generated by the Order/Invoice Processing module.
In the Inventory Account field... This account is used in posting transactions to an inventory asset account. This is applicable only to invoices generated by the Order/Invoice Processing module.
In the Cost Of Goods Account field... This is applicable only to invoices generated by the Sales Order Processing module.
In the Inventory Adjustment Account field... This account is used to record adjusting transactions rather than posting them directly to an inventory account. The Inventory Adjustment Transaction is an example of its use. This is a contra asset account.
In the COGS Adjustment Account field... This account is used to record adjusting transactions rather than posting them directly to a cost of goods sold account. This is an expense account.
In the Purchases Account field... This account is used to record the value of incoming Purchase Orders that were received and no vendor invoice was issued. This is an credit/liability account.
In the Purchase Price Variance Acct field... This account is used to accumulate the differences in the cost of items from vendors. This is an expense account.
When finished making entries to the fields…
Attempting to leave an unsaved Distribution Code, the module issues this confirmation:
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