LBSi SAP Business One Solution

1 LBSi SAP Business One Solution How to setup GL Accounts For Item Groups and Warehouses ! !" # $% ! !" " # &&& ' ( ) # ) *+ ' ( ) Pittsburgh Office: One Oxford Centre, 301 Grant Street, Suite 4300, Pittsburgh, PA 15219 Ph:412-577-4084 Columbus Office: 545 Metro Place South, Suite 100, Dublin, OH 43017 Ph: 614-766-3622 SAP Business One allows you to define GL accounts based on warehouse, item group or item level as indicated in the following screen. The following explanation of GL accounts is applicable for the setup of accounts on the item groups or warehouse screens: Item groups can be accessed via Administration > setup > Inventory > Item Groups.

2 Item warehouses can be accessed via Administration > setup > Inventory > Warehouses. LBSi SAP Business One Solution How to setup GL Accounts For Item Groups and Warehouses Page 2 of 4 Expense account: [Cost of Goods Sold account] this account is used on purchases of non-stock (items in the item master where the inventory item check box is NOT checked) items to record the expense. Revenue: [Revenue account] Used to record revenue income on sales transactions. Inventory account: [asset account] this account should reflect the value of on hand inventory.

3 All inventory transactions will post to this account unless the document is based on a document where the inventory transaction already took place. Cost of Goods Sold Account: [Cost of Sales account] Cost of item is debited for sales documents with inventory movement such as Delivery, AR Invoice, AR Credit, and Goods Return. Allocation Account: [liability account] Offsetting account for inventory in Goods Receipt PO and AP Credit Memos. Represents the total amount of open Goods Receipt PO. Common name in US is Goods Received Not Invoiced.

4 This account should be balanced when Goods Receipt PO is closed. Variance Account: [cost of sales account] only used for items defined as standard cost. Transactions to this account are the difference between standard LBSi SAP Business One Solution How to setup GL Accounts For Item Groups and Warehouses Page 3 of 4 cost of the item and purchase price in the posted document. In some specific scenarios, if there are differences between the standard cost and the actual cost in the purchasing document, these differences will be recorded in the variance account.

5 Price Difference Account: [Cost of sales account] Used for purchasing transactions only where there is a price difference between the base and target documents and all items or the entire inventory has been released prior to posting the AP Invoice document. Negative Inventory Adjustment Account: [Cost of sales account] Used when inventory on hand goes negative (not recommended accounting practice). When receiving goods while in negative status the difference between the static item cost and the purchase cost is posted to this account.

6 Inventory Offset Decrease account: [Cost of sales account]. Used to offset the inventory account when inventory decreases using Goods Issue feature in Business One. You can change this account manually when performing the goods issue transaction. Inventory Offset Increase account: [Cost of sales account] Used to offset the inventory account when inventory increases using Goods Receipt feature in Business One. Normally this account matches the Inventory Offset Decrease account. You can change this account manually when performing the goods receipt transaction.

7 Sales return Account: [asset account] Returned goods from a customer will be posted to this account. Normally this account is the inventory account that was used when the item was originally transacted. Exchange Rates Differences Account: [Financing account] Used in purchasing transactions only. In certain scenarios, creating a target document from a base document when the item price is in foreign currency and the target document is a different exchange rate, a difference in local currency occurs and is posted to this account.

8 Goods Clearing Account: [Asset account] Offset to allocation account when closing a Goods receipt PO or Goods Return PO manually (AP Invoice not created). Account is credited to reduce costs of goods as no AP Payment is being created. No transaction to on hand quantity is performed in this transaction. G/L Decrease Account: [cost of goods sold account] Used to offset the inventory account when inventory decreases using Material Revaluation feature in Business One. G/L Increase Account: [cost of goods sold account] Used to offset the inventory account when inventory increases using Material Revaluation feature in Business One.

9 Normally this account matches the Inventory Offset Decrease account. WIP Inventory Account: [asset account] this account is posted to when goods are issued to production from inventory. WIP Inventory Variance Account: [cost of goods sold account] this account is posted to when there is a difference between the Actual Component Cost and Actual Product Cost on the production order. LBSi SAP Business One Solution How to setup GL Accounts For Item Groups and Warehouses Page 4 of 4 Expense Clearing Account: [liability account] this account is used when posting Goods Receipt PO with freight that will influence the cost of an item.

10 Works like the Allocation cost account. This account should be balanced when creating the AP Invoice against the Goods Receipt PO. Stock in transit account: [liability account] Account should be the same account used under Allocation account above (Goods received not invoiced). Sales Credit Account: [revenue account] Used when posting an AR Credit on the sales side for non stock items (items in the item master where the inventory item check box is NOT checked). Purchase Credit Account: [expense account] Used when posting an AP Credit on the purchasing side for non stock items (items in the item master where the inventory item check box is NOT checked).