Default Accounts
System Maintenance Menu -> Configure
System Settings -> Accounting Tab -> General
Ledger -> Default Accounts
Texada SRM is designed to post automatically to certain
pre-selected General Ledger accounts. These pre-selected accounts
are called DEFAULT ACCOUNTS. General Ledger default accounts are
the axis around which the entire accounting system pivots.
Because SRM uses pre-selected accounts for each posting program,
most accounting programs do NOT prompt to select accounts for debit
or credit entry.
These defaults can be maintained in the Default Account window
in the "General Ledger" parameters on the Accounting tab of
the Configure System Settings.
An operator must be assigned a Security
Role that allows permission to the Accounting - Default
Accounts in order to access this table.
For example, Post Customer Payments on
the Accounts Receivable menu is designed to credit A/R and debit
the Method of Payment selected each time a customer payment is
entered. It would be too repetitive to be asked for debit or credit
every time. So the software automatically posts to the pre-selected
accounts, BY DEFAULT.
-
- CURRENCY
- Type C for Canadian, U for U.S. funds, or A for Australian
funds, or select the currency from the drop-down list provided.
The default accounts are organized by currency, so that separate
G/L posting accounts may be maintained by Currency.
For example, there may be both an American and a Canadian Bank
Account, and an American and Canadian Accounts Payable or Accounts
Receivable.
A window is provided on each G/L account field to lookup the
correct account number as outlined in G/L
Account Search.
BANK (A/P PAYMENTS)
- Enter an asset account to be debited with the checks posted
from Accounts Receivable or Daily Close cash balancing, and
credited by checks paid for Accounts Payable.
ACCOUNTS RECEIVABLE
- Enter an asset account to be debited with On Account invoices,
and credited with customer's On Account payments.
Note: Posting by Division to this 'A/R Control Account' is
controlled by the Activate G/L Posting By Division flag in
Support Application Parameters.
DROP SHIP ACCOUNT
- This field is only active if the Drop Ship feature for
Inventory has been activated from the Support
Application Parameters.
ACCOUNTS PAYABLE
- Enter a liability account to be credited with purchase invoices
from your suppliers and debited with your invoice payments
(checks).
Note: Posting by Division to this 'A/P Control Account' is
controlled by the Activate G/L Posting By Division flag in
Support Application Parameters.
A/P INVOICE DISTRIBUTION SUSPENSE
- Enter a liability account to be used as a temporary holding
account for A/P invoices that are split into multiple invoices with
different due dates for payment in A/P Invoice
Distribution Details.
This cannot be the same as the Accounts Payable control account for
this currency.
DISCOUNT TAKEN ON A/P
- Enter a revenue account to be credited when an invoice is paid
early and a discount is taken.
e.g. If Invoice terms were 2% 15 days and the invoice was paid
within 15 days, then the 2% discount would be posted here.
DISCOUNT GIVEN ON A/R
- Enter an expense account to be debited with the discount
expense for customers that pay early and take a discount.
e.g. If Invoice terms were 2% 15 days NET 30 and the invoice was
paid within 15 days, then the 2% discount would be posted here.
This account is also used when making minor adjustments to
customer's accounts, such as clearing a small overpayment or small
short payment.
Many firms also write-off (or clear) unpaid finance charges to
this account in order to keep the accounts as up to date as
possible.
An expense account must be entered even if your firm does not
give discounts or allow adjustments to accounts or write-off unpaid
finance charges.
FINANCE CHARGES
- Enter a revenue account to be credited with Finance Charge
revenue. A revenue account must be selected, even if your firm does
not charge finance charges on overdue accounts.
DONATIONS RECEIVED
- This applies to charity and donation transactions entered using
the PT Donations Software.
CASH SALES
- Enter the asset account to be debited with any cash sales
recorded using Miscellaneous Cash Receipts .
This program would be used when inventory is not setup to record
sales NOT On Account.
It is recommended that the Cash Sales be posted to a Cash
Clearing Account instead of directly to the Bank Account. This
provides the ability to balance the cash and record the bank
deposit separately.
PAYROLL BANK ACCOUNT
- Enter the asset account to be credited with payroll checks.
This applies only to the Payroll module. Otherwise, enter your Bank
Account number.
EXCHANGE ACCRUAL
- Enter the liability account to be used for exchange rate
postings for this currency.
The exchange percent is setup in Currency
Codes and also must be activated by Texada Support using the
flag in Support Application Parameters.
- On equipment purchases from a Vendor with this currency, this
liability account is credited for a higher valued currency by the
exchange amount, and the Inventory Account from Sales Product Class or Rental
Product Class is debited.
When the currency value is lower, the exchange amount is debited to
this liability Exchange Accrual account and the Inventory Account
is credited.
- On equipment sales and rentals to Customers with a higher
valued currency, this liability account is debited for the currency
exchange amount and the Revenue account from Sales Product Class or Rental
Product Class is credited.
When the currency value is lower, the exchange amount is credited
to this liability Exchange Accrual account and the Revenue Account
is debited.
- On Invoiced services, the postings of the exchange amount are
to this liability account and to the revenue account from Contract/Invoice Services.
- On Damage Waiver charges, the postings of the exchange amount
are to this liability account and to the revenue account assigned
below in DEFAULT ACCOUNTS.
- On Post Bad Debts and Post Collections when the customer currency is
different from the currency defined in Company
Information
This Exchange liability account is also used when making money
transfers in Miscellaneous Journals, from
a bank for one currency to a bank for another currency that
requires an exchange rate adjustment.
Refer to Currency Codes for a more
detailed explanation of this type of transaction.
DUTY/BROKERAGE ACCRUAL
- Enter the liability account to be credited for Duty/Brokerage
expenses when equipment is purchased from a Vendor with this
currency. The Inventory Account from Sales
Product Class or Rental Product Class
is debited.
The default percent for Duty/Brokerage is setup by individual
supplier in Vendor Information.
To generate automatic postings for Duty/Brokerage, contact Texada
Support to set the flag in Support Application
Parameters.
FREIGHT ACCRUAL
- Enter the liability account to be credited for Freight when
equipment is purchased from a Vendor with this currency and a
freight expense. The Inventory Account from Sales Product Class or Rental
Product Class is debited.
The default percent to be charged for Freight is setup by
individual supplier in Vendor
Information.
To generate automatic postings for Freight costs, contact Texada
Support to set the flag in Support Application
Parameters.
CASH OVER / SHORT
- Enter the G/L Expense account to be debited or credited for any
cash discrepancy generated from the on-screen Cash-out process in
Daily Close 1.
The balancing debit or credit will be posted to the clearing
account for the method of payment as determined in Method Of Payment Codes.
The Cash Over/Short option can be activated in the Company Daily Close Parameters.
CUSTOMERS' DEPOSITS HELD
- Enter the Liability account to be credited when a customer
deposit is taken on a Contract, Reservation, Sales Order or Work
Order, or select the G/L account from the window searching by
account number or account description.
DAMAGE WAIVER BY TAX CODE
- Skip this field, if your firm does not post the Damage Waiver
Revenue by Tax Code. The standard G/L Revenue Account for Damage
Waiver above will be used.
If your firm does wish to post the Damage Waiver Revenue by Tax
Code enter the tax codes in the window as follows:
Note: This would only apply when tracking the Damage Waiver Revenue
according to the State or Province.
- TAX CODE
- Enter the tax code, or select it from the drop-down list. The
tax code description displays.
If a new tax code is required it can be added in Tax Codes.
- REV ACCT
- Enter the Damage Waiver Revenue account which corresponds to
this tax code, or select it from the window, searching by account
number or account description. The account description
displays.
If your firm operates in several provinces or states, separate G/L
Damage Waiver Revenue Accounts may be required for each one.
ADDITIONAL ACCOUNTS
-
- Bad Debts Accounts:
-
- BAD DEBTS EXPENSE
- Enter the Expense account to be debited with any net bad debt
write-offs, or select it from the window, searching by account
number or account description.
BAD DEBTS RECOVERY
- Enter the Expense account to be credited with any bad debts
that are recovered, or select it from the window, searching by
account number or account description.
e.g. customer pays after their account has been written off. (The
Bad Debt account can be used.)
BAD DEBT COLLECTION EXP
- Enter the Expense account to be debited with any collection
fees charged to your firm for collecting a bad debt, or select it
from the window, searching by account number or account
description. This can be the same account as the Bad Debt account
above.
BAD DEBTS LEGAL EXPENSE
- Enter the Expense account to be debited with any legal fees
charged to your firm for collecting a bad debt, or select it from
the window, searching by account number or account description.
This can be the same account as the Bad Debt account above.
GST PAID ON PURCHASES
- For Canada only, enter the asset account used for GST PAID ON
PURCHASES, or select it from the window, searching by account
number or account description.
This should NOT be the same account as GST charged to your
customers, i.e. TAX 1). This account tracks the GST charged to your
firm, if a collection agency collects a bad debt.
For other countries, use your Suspense account.
LOCK BOX VARIANCE EXPENSE
- If your firm utilizes the Lockbox method of receiving customer
payments as explained in Import Lockbox
Payments, enter an expense account to allow for any amount to
be discounted, caused by a variance in the bank input process, or
select the expense account from the window.
The variance allowance can be setup per customer in Customer Lockbox Variance.
Job Cost Accounts:
-
- JOB COST PAYROLL EXPENSE
- If your firm utilizes the Job costing feature and uses Time
Sheets, this account is used in posting Post
Time Clock/Cost Entries.
JOB COST PAYROLL ACCRUAL
- If your firm utilizes the Job costing feature and uses Time
Sheets, this account is used in posting Post
Time Clock/Cost Entries.
TRADE DISCOUNTS ACCOUNT
- Trade discounts apply only to a few firms.
If your firm does not give trade discounts, enter the same account
as was assigned to DISCOUNT GIVEN ON A/R above.
For firms using trade discounts, enter a separate G/L account to
track the activity or select the account from the window.
Note: Since this account is a clearing account, the net activity
should always be zero. The trade discount amount is posted back to
the original revenue and tax accounts through this account.
For more information on this discount feature refer to the
Trade Discounts.
MANUFACTURING ROUNDING
- When sales parts are used in the manufacturing process outlined
in Manufacturing Receiving the costs of
the parts are rounded to 2 decimal places.
The cost adjustments of parts used are posted through Daily Close 3 and this default account is used to
post any rounding differences.
Asset Finance Accounts:
- The following 3 G/L accounts are only used by the Company
currency and apply to the Asset Financing
module.
- FINANCE BANK
- Enter a Bank account to become the default Bank Account
G/L when a new schedule is setup in the Asset Financing
- FINANCE LOAN LIABILITY
- Enter the Loan Liability account that will be Debited for the
monthly payment amount that is posted manually from Asset Finance Report and Posting or automatically
through Automatic Reporting for job
AFHDR09.
This account is also Credited by the startup one-time posting of
the total Interest amount for the schedule as explained in Asset Financing.
- FINANCE INTEREST LIABILITY
- Enter the Interest Liability account that will be Credited for
the monthly interest amount that is posted manually from Asset Finance Report and Posting or automatically
through Automatic Reporting for job
AFHDR09.
This account is also Debited by the startup one-time term posting
of the total Interest amount for the schedule as explained in
Asset Financing.
WORK ORDER WORK IN PROGRESS
- This field is only active if the processing has been activated
in Custom Function Parameters.
REWARDS PROCESSING
- This window only applies to when the Rewards Program
processing is activated in Custom Function
Parameters, and can be used to setup the following G/L posting
accounts:
- REWARD EXPENSE
- Enter the Expense G/L account to be debited for Usable
Rewards Dollars earned when the customer pays an invoice on time
without using Reward Dollars.
- REWARD REVENUE DEFERRED
- This account tracks the potential liability of customers
claiming Reward Dollars.
Enter the Liability G/L account to be credited for Usable
Rewards Dollars earned when the customer pays an invoice on time
without using Reward Dollars, and to be debited when Usable
Rewards Dollars are used to pay transactions On Account and also to
be debited when Usable Reward Dollars expire or are
forfeited.
- REWARD FORFEIT
- Enter the Revenue to be credited when Usable Rewards
Dollars expire or are forfeited.
METHOD OF PAYMENT
- This field is display only and shows the payment method that
has automatically been defined by the system for this currency, as
RWD-X where X is the currency code.
This is the payment method that must be selected in Customer Payments and in Counter Payments to apply any Usable
Rewards Dollars to pay transactions On Account.
This payment method code is reserved and cannot be used in the
Method Of Payment table.
Posting actions are:
Earn: = DR Reward
Expense and CR Reward Revenue Deferred
Use: = DR Reward Revenue Deferred and CR A/R
Control Account
Expire: = DR Reward Revenue Deferred and CR Reward
Forfeit
Note: All transactions post to Head Office division through
Daily Close 3 regardless of the document
or payment division.
Refer to Reward Program Maintenance for
more information on configuration and use of this feature.
TAX CODE 1
- This field only applies if the "Standard" tax process is
utilized.
Enter the tax code for TAX 1, or select it from the drop-down list.
In Canada, Tax 1 is generally GST. In the United States, Tax 1 is
State Sales Tax SST.
TAX CODE 2
- This field only applies if the "Standard" tax process is
utilized.
Enter the tax code for TAX 2, or press <F4> and select it
from the drop-down list. In Canada, Tax 2 is generally PST. In the
U.S., Tax 2 is generally County, Municipal or Local tax.
Finished?
- Click ACCEPT to proceed or CANCEL to exit.
ACTIONS:
Additional actions provided by buttons on
the Default Accounts screen include:
- Delete a Default Account table:
Click on the DELETE button, then select the Currency
code for the Default Account table from the drop-down list that is
to be deleted.
Confirmation is required.
Topic Keyword: GLDA01