Invoicing and the General Ledger Interface

1. Accounts Receivable Control - the GL Control Account to update for the Invoice/Credit Note total comes from Maintain Bank Codes (AR02) unless an override has been specified in Maintain Payment Methods/Currencies (IN08). The GL Control Account to update depends upon the Method of Payment, the Sales Office that processed the transaction, and the Customer's Currency.

   For each invoice processed, the IN08 table is read using Payment Method + the Invoice Sales Office + the Customer's Currency to identify which Bank Code record (AR02) to read.

   The Sales Office and Currency components are identified as follows:

   • The Sales Office component is per the Sales Office selected when the order/invoice/credit note was entered (not per the Sales Office assigned to the customer in Maintain Customer Master (SU13)).

   • Each customer is assigned to a Bank in SU13; a Currency is assigned to each Bank. This indirectly identifies the Customer's Currency.

   For On Account Transactions (Type=Account), the objective is to identify the A/R Control account to update.

   • The Payment Method + Sales Office + Customer's Currency are used to identify which AR Bank record (AR02) to read.

   • The A/R control account is picked up from the AR02 Bank record.

   For EFT transactions (Type=EFT), the objective is to identify the Bank Control account to update.

   • The Payment Method + Sales Office + Customer's Currency are used to identify which Bank record (AR02) to read.

   • The Bank control account is picked up from the AR02 Bank record unless an override GL Account is assigned in this program.

   Payment types Cash, Check, Deposit, Account-Retail, Company Card-Retail also allow entry of an override GL account instead of extracting the A/R control account from AR02. For example, for Cash or Check transactions (which do not post an invoice to the Customer's account) it is more appropriate to update a Cash Clearing account than the A/R Control account; that account is entered as an override GL Account in this program.

2. Sales / Cost of Sales (C.O.S.) / Inventory - the Invoicing system is initialized by Company Control Initialization (CC00/Invoicing/General Ledger). The account codes that will be used to pass accounting entries from the Invoicing system to the General Ledger system are defined in CC00. These codes must also exist in the General Ledger Master file.
   • GL account codes for Sales, Cost of Sales and Inventory control accounts are maintained in a table, entered as follows:
     • Location Code (Sales Office/Warehouse/Store)
     • Product's GL Code (defined in the 'GL Code' field in Maintain Inventory Master (IM13/Stock))
     • Customer's Type (defined in the 'Customer Type' field in Maintain Customer Master (SU13/Info)

   • For each Product detail line on the Invoice, the Customer's Sales Office assignment (from SU13) plus the Product's GL code plus the Customer's Type code combine to point to the table entry to be extracted to generate GL distribution entries for Sales and C.O.S .

   • The Warehouse, Sales Office or Store associated with the Sales Order plus the Product's GL Code plus the Customer's Type Code combine to point to the table entry to be extracted to generate the GL distribution entry for Inventory.

   • For example:

     Loc Code	GL Code	Cust Type	GL Sales	GL C.O.S.	GL Inventory
     01	00	1	01-4000	01-5000	01-1100
     02	00	1	02-4000	02-5000	02-1100

     A sale made to a customer assigned to Sales Office 01 (in SU13) but shipped out of Warehouse 02 (as assigned in OE30) would generate the following GL Postings:

     CR 01-4000 Sales
     DR 01-5000 COS
     CR 02-1100 Inventory

     IN02 - If applicable, override GL Accounts for COS and/or Inventory can be assigned to TAT codes (for example, when defective merchandise is returned you may wish to Debit a Defective Merchandise GL account instead of your regular Inventory account).

   • Note: For models, the Sales and Cost of Sales GL accounts are assigned using the product GL code for the model header. For Inventory, the GL account is assigned using the product GL code of the components.

3. Supplementary Charges - a control record is created using the Maintain Supplementary Charges (IN01) program for all non-Product charges that might be posted on an Invoice/Credit Note (for example: freight, restocking charges, minimum order charges, etc.). Within each record, the General Ledger distribution account code is identified. When a Supplementary Charge line is posted by the Schedule Invoices & Credits (IN43) program, the GL Account assigned to the Supplementary Charge record is extracted and updated.
   • Note: For miscellaneous charges posted against Supplementary Charge code "**", the Invoicing operator enters the General Ledger distribution account code when the charge is entered on the Invoice/Credit Note.

4. Taxes - When IN43 posts transactions, the Tax Codes appearing on the transaction are processed. The 'GL Account for Distribution' defined in Maintain Tax Codes (IN05) for each Tax Code appearing on the transaction is extracted and updated.
   • The Tax Remittance Report (IN83) has a 'Generate AP Invoices' restriction that posts an AP Invoice against the GL Account for Distribution from IN05 for each Tax Code reported.