Setting Up Account Number Categories

The Inventory Accounting module automatically generates journal entries. The user, however, must first define the account and center numbers that are to be assigned to the system-generated journal entries. Three Reference File Categories must be maintained:

· Category 451: Account Number Assignment - Process

· Category 452: Account Number Assignment - Inventory

· Category 453: Account Number Assignment - Intercompany

The three Accounting Number Assignment tables show what information must be entered as a key for each account type within each category. These tables will be helpful when you first set up account number assignments.

The Accounting Transactions table shows how the Inventory Accounting module determines which accounts to debit/credit for each type of transaction. It also lists the number of the journal entry that will be created for each transaction.

Note: The accounts and centers must be defined before account numbers are assigned on categories 451, 452, and 453. If the General Ledger is installed, the assigned account numbers must exist on the G/L Account Master File. If the General Ledger module is not installed, the account and center numbers must exist on the Reference File (categories 112 and 113).

Also, if you are using the General Ledger module and the management reporting option, please review Management Reporting in the Key Concepts section of the General Ledger User Manual before defining or assigning your account numbers. With management reporting, only accounts with the same reporting class as the Inventory Accounting subsystem can be used in the subsystem.

See the Common Features: Reference File Categories manual for more information on these categories and the validation rules for entering the keys.

Type	Company/Location	Whs	Code	Adj Code	Rate	Account Type
01	Manufacturing	ID#	Accounting Code			Work in Process
10	Receiving	ID#	Vendor Payable Code	Adjustment Code (Optional)		Accrued Purchase Receipts
11	Manufacturing	ID#	Department		Optional	Labor Accrual
12	Manufacturing	ID#	Department		Optional	Burden Accrual
13	Manufacturing	ID#	Department			Miscellaneous Cost Accrual
14	Receiving	ID#	Rate Code			Non-Acquisition Costs Accrual
20	Manufacturing	ID#		Production Type		Total Material Variance
21	Manufacturing	ID#		Production Type		Labor Closure Variance
22	Manufacturing	ID#		Production Type		Manning Closure Variance
23	Manufacturing	ID#		Production Type		Overhead Closure Variance
24	Manufacturing	ID#		Production Type		Miscellaneous Cost Variance
25	Receiving	ID#	Purchasing Group			Purchase Price Variance
26	Manufacturing	ID#	Department and Production Type			Labor Efficiency Variance
27	Manufacturing	ID#	Department and Production Type			Manning Efficiency Variance
28	Manufacturing	ID#	Department and Production Type			Burden Efficiency Variance
30	Manufacturing	ID#	Department (for MRP Parts) or Family Code (for JIT Parts) and Production Type			Scrap Expense

Category 451: Account Number Assignment - Process

Type		Company/Location		Whs.		Code		Account Type
	01		Transaction		ID #		Accounting Code		Inventory
	05		Transaction		blank		blank		Inventory - Direct Shipments
	06		Transaction		ID #		Accounting Code (Optional)		Inventory - Non-Stocked Parts
	10		Transaction		ID #		Adjustment Code		Inventory Adjustment
	15		Transfer		ID #		Adjustment Code		Transfer Price Variance
	20		Manufacturing		ID #		blank		Standard Cost Change - Manufacturing Order
	25		Adjustment		ID #		blank		Standard Cost Change - Classified Part
	35		Receiving		ID #		blank		Standard Cost Change - Purchase Order Receipts
	40		Sourcing		ID #		Accounting Code		Reference Part Expense (used when selling a reference item)
	41		Transaction		ID #		Accounting Code and Requesting Department		Cost of Reference Item (used when purchasing a reference item)
	45		Selling		ID #		Product Class Code and Adjustment Code and Order Class and Customer Type		Cost of Goods Sold

Category 452: Accounting Number Assignment - Inventory

Other accounts on category 452 are used by the Accounts Payable module and are documented

in that user manual.

Type

Co/Loc

Warehouse

Co/Loc

Warehouse

Code

Account Type

Sending

Receiving

blank

Intercompany Receivables

Receiving

Sending

blank

Intercompany Payables

Receiving

Sending

blank

Transfer Variance

Sending

Receiving

blank

Transfer Variance

Receiving

Sending

Cost Element Code

Non-Acquisition Costs

Sending

Receiving

blank

In-Transit Inventory

Sending

Receiving

blank

Accrued Transfers

Category 453: Account Number Assignment - Intercompany

Transaction Type/Account	Debit			Credit
	Cat	Type	JE #	Cat	Type	JE #
Purchase Order Receipt
Inventory Accrued Purchase Receipts Purchase price variance (if applicable)	452	01	010	451	10	020
Purchase Order Return
Accrued Purchase Receipts Inventory Purchase price variance (if applicable)	451	10	040	452	01	030
Purchase Order Receipt - Direct Shipment
Inventory Accrued Purchase Receipts Std. Cost Change (if applicable)	452	05	015	451	10	027
Purchase Order Return - Direct Shipment
Accrued Purchase Receipts Inventory Std. Cost Change (if applicable)	451	10	047	452	05	035
Purchase Order Receipt - Non-Acquisition Cost
Inventory Accrued Non-Acquisition Cost	452	01	010	451	14	070
Purchase Return - Non-Acquisition Cost
Accrued Non-Acquisition Cost Inventory	451	14	070	452	01	030
Purchase Receipt - Non-Stock Part
Inventory Accrued Purchase Receipts	452	06	453	451	10	020
Purchase Return - Non-Stock Part
Accrued Purchase Receipts Inventory	451	10	040	452	06	425
Purchase Receipt - Reference Part
Inventory Cost Accrued Purchase Receipts	452	41	452	451	10	020
Purchase Return - Reference Part
Accrued Purchase Receipts Inventory Cost	451	10	040	452	41	424
Purchase Order Receipt - Phantom PO
Accrued Misc. Cost Accrued Purchase Receipts Purchase Price Variance (if applicable)	451	13	720	451	10	**
Purchase Price Variance*
Purchase Price Variance Accrued Purchase Receipts	451	25	050	451	10	**
Invoiced Transfer Order Receipt
Inventory Accrued Purchase Price Variance Purchase Price Variance (if applicable) Accrued Transfers In-Transit Receipts	452 453	01 35	010 920	451 453	10 30	020 910
Stock Transfer - between warehouses
Inventory (TO/FROM) Non-Acquisition Cost (TO) Transfer Price Variance (TO/FROM)	452 453	01 15	210 230	452 453 453	01 25 20	250 280 270
Stock Transfer - between companies
Inventory (TO/FROM) Intercompany Receivable Intercompany Payable Non-Acquisition Cost (TO) Transfer Price Variance (TO/FROM)	452 453 453	01 05 15	210 260 230	452 453 453 453	01 10 25 20	250 220 280 270
Inventory Adjustments - Inventory Decrease
Inventory Adjustment Inventory	452	10	320	452	01	310
Inventory Adjustment - Inventory Increase
Inventory Inventory Adjustment	452	01	310	452	10	320
Manufacturing Order Receipt
Inventory WIP	452	01	110	451	01	120
Component Issue (consumed)
WIP Inventory	451	01	150	452	01	160
Component Issue (produced)
Inventory WIP	452	01	160	451	01	150
Flow Receipt
Inventory WIP	452	01	110	451	01	120
Flow Issues
WIP Inventory	451	01	150	452	01	160
Flow Issue - Non-Stocked
WIP Inventory	451	01	150	452	06	170
Unplanned Material Usage (scrap option = 2)
Scrap Expense Inventory	451	30	150	452	01	160 170
Direct Labor
WIP Accrued Payroll	451	01	610	451	11	620
Overhead
WIP Accrued Burden	451	01	640	451	12	630
Miscellaneous Cost
WIP Misc. Cost Accrual	451	01	710	451	13	720
Material Usage Variance*
Material Variance WIP	451	20	810	451	01	800
Labor Closure Variance*
Closure Variance WIP	451	21	830	451	01	820
Manning Variance*
Manning Variance WIP	451	22	850	451	01	840
Overhead Variance
Overhead Variance WIP	451	23	870	451	01	860
Miscellaneous Cost Variance*
Misc. Cost Variance WIP	451	24	760	451	01	750
Labor Efficiency Variance*
Efficiency Variance WIP	451	26	830	451	01	820
Manning Efficiency Variance*
Efficiency Variance WIP	451	27	850	451	01	840
Burden Efficiency Variance
Burden Variance WIP	451	28	870	451	01	860
Scrap - Component or Parent (scrap option = 2 or 3)
Scrap Expense WIP	451	30	900	451	01	900
Customer Order Shipment
Cost of Goods Sold Inventory	452	45	410	452	01	420
Customer Order Shipment - Direct Shipment
Cost of Goods Sold Inventory - Direct Ship	452	45	411	452	05	421
Customer Order Shipment - Intercompany Sourcing
Intercompany Receivable Inventory	453	05	440	452	01	420
Invoiced Transfer Order Shipment
Cost of Goods Sold Inventory In-Transit Inventory (Rcv Whs) Accrued Transfers (Rcv Whs)	452 453	45 30	410 910	452 453	01 35	420 920
Customer Order Shipment - Reference Part
Cost of Goods Sold Expense	452	45	410	452	40	423
Customer Order Return Reverses debits and credits noted above.
Standard Cost Change - Classified Parts**
Inventory Std. Cost Change	452	01	550	452	25	560
Standard Cost Change - Purchase Order Receipt**
Std. Cost Change Accrued Purchase Receipts	452	35	060	451	10	027
Standard Cost Change - Manufacturing Orders***
WIP Std. Cost Change	451	01	880	452	20	890
Accounting Code Change - Inventory	452	01	510	452	01	520
Accounting Cost Change - WIP	451	01	510	451	01	520

Accounting Transactions

*Assumes expected price is greater than standard price. If standard price is greater than expected, debit Accrued Accts. Payable and credit corresponding inventory account.

** For Phantom PO, the following journal entries are used: variable = 026; fixed =025; variable reversal/return = 046; fixed reversal/return = 045. For PPV, journal entry depends on the type of transaction with the variance.

***Assumes standard cost increased. If transaction cost is less than standard, reverse the debit and credit entries. For PO reversals, the appropriate inventory account should be used, based on what type of inventory has experienced a change in standard purchase price.

Note: Reversal transactions will switch which accounts are being debited and credited.

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Setting Up Account Number Categories