Posting Profiles

Main Accounts Types:

The following main account types determine how a main account is used in the chart of accounts. You must select a main account type when you create a main account in the Main accounts - chart of accounts: %1 form.

•  Profit and loss, Revenue, and Expense – These main accounts are used as posting accounts. 
• Profit and loss accounts are used to record revenue and expenses. The sum of all operating accounts determines the year-end results. 
• Revenue and Expense main accounts have the same function as Profit and loss main accounts.
• Balance sheet, Asset, Liability, and Equity – These main accounts are used as transaction accounts to record the amounts that a legal entity owns or owes. If you use Asset, Liability, and Equity main accounts, the accounts can have more specification, and you can more precisely structure reports about the balance of the legal entity.
• Total – These main accounts are used to add account intervals. Configure the Total main account type by using the Sales tax totals form, which displays the total of the group balances for all account intervals.
•  Reporting – These main accounts are used for financial statement reporting.
• Common – These main accounts are for accounts that are used in banks or financial institutions in China. Accounts that have a Common main account type are recorded as assets if the balance is positive and as liabilities if the balance is negative. An example of an account that has the Common main account type is a currency hedging account.

Vendor Posting Profile:

Label	Description	Posting Account
Account/Group number	If Table is selected in the Account code field, select the account number of the vendor that is associated with the posting profile. If Group is selected, select a vendor group. If All is selected, leave this field blank.	Vendor Group
Summary account	Select the ledger account that will be used as the summary account for the vendors that the posting profile relates to. The Do not allow manual entry parameter for this main account will be marked. If you subsequently remove this account from the posting profile, validate the Do not allow manual entry setting on the Main accounts page. Note: If the Use posting definitions option is selected on the General ledger parameters page, the transaction posting definition for vendor invoices is used instead of the summary account.	Accounts Payable -Domestic/Foreign
Settle account	Select the liquidity ledger account that is used for cash flow forecasts. This fields are only available when cash flow forecasting is enabled.	Bank Account-INR
Sales tax prepayments	Select the account for sales tax payments that are received in advance. Note: The posting profile that is used when the payment is marked as a prepayment is selected in the Posting profile with Prepayment journal voucher field in the Ledger and sales tax area on the Accounts payable parameters page.	Other Tax Payable
Arrival	Select the ledger account that information about unapproved vendor invoices is posted to. The information is entered in the Invoice register journal. For example, a user enters very basic information about vendor invoices when they are received in the invoice register. When the invoice register is posted, the transactions are posted to the account that is entered here and in the Offset account field. When the invoices are approved, the debt is transferred from the arrival account to the vendor summary account.	Invoice Pending Approval
Offset account	Select the ledger account that is used for offsetting unapproved vendor invoices that are updated by using the invoice register. The offset account acts as the offset account for transactions that are posted to arrival accounts. Therefore, the account contains vendor purchases that have not yet been approved.	Accounts Payable - Offset Invoice Pending Approval
Table Restriction	For transactions that have the selected posting profile, specify whether transactions will be settled automatically, interest will be calculated, and collection letters will be issued. You can also select the account that is used when transactions that have the selected posting profile are closed.
Settlement	Select this option to enable automatic settlement of transactions that have this posting profile. If this option is cleared, you must manually settle transactions by using the Settle open transactions page.
Cancel	Select this option if you want to be able to cancel transactions that have this posting profile.
Close	Select a posting profile to change to when transactions that have this posting profile are closed. A transaction is regarded as closed when it has been settled in full.

 Customer Posting Profile:

Label	Description	Posting Account
Account/Group number	If Table is selected in the Account code field, select the account number of the vendor that is associated with the posting profile. If Group is selected, select a vendor group. If All is selected, leave this field blank.	Customer Group
Summary account	Select the ledger account that will be used as the summary account for the vendors that the posting profile relates to. The Do not allow manual entry parameter for this main account will be marked. If you subsequently remove this account from the posting profile, validate the Do not allow manual entry setting on the Main accounts page. Note: If the Use posting definitions option is selected on the General ledger parameters page, the transaction posting definition for vendor invoices is used instead of the summary account.	Accounts Receivable -Domestic/Foreign
Settle account	Select the liquidity ledger account that is used for cash flow forecasts. This fields are only available when cash flow forecasting is enabled.	Bank Account-INR
Sales tax prepayments	Select the account for sales tax payments that are received in advance. Note: The posting profile that is used when the payment is marked as a prepayment is selected in the Posting profile with Prepayment journal voucher field in the Ledger and sales tax area on the Accounts payable parameters page.	Other Tax Payable
Liabilities for discount account	Select the ledger account for liabilities of discount.	Cash discount ledger
Collection letter sequence	Select the identifier of the collection letter sequence to use for customers to whom the posting profile is assigned.
Interest code	Select the interest code to use for the calculation of interest for customers to whom the posting profile is assigned.
Settlement	Select this toggle to enable automatic settlement of transactions that have this posting profile. If this toggle is cleared, you must manually settle transactions by using the Settle open transactions page or the Enter customer payments page.
Interest	Select this toggle if interest should be calculated on outstanding balances for customer accounts that use this profile. If this toggle is cleared, interest will not be calculated for these customers.
Collection letter	Select this toggle if collection letters should be generated for customer accounts that use this profile. If this toggle is cleared, collection letters will not be generated for these customers.
Close	Select a posting profile to change to when transactions that have this posting profile are closed. A transaction is regarded as closed when it has been settled in full.

Sales Order Inventory Posting:

Cost of units, delivered (Packing Slip)	This account should be the one which holds selling assets. The account is credited when a packing slip is posted. The account is debited when the sales order is invoiced. Posting type is “Order packing slip”.	Ledger transaction when a SO packing slip is updated: Debit: Packing slip Credit: Packing slip offset
Cost of goods sold, delivered (Packing Slip Offset)	Usually this account is asset account that holds amount ready to receive. The account is debited when packing slip is posted and credited when the sales order is invoiced.	Ledger transaction when a SO packing slip is updated: Debit: Packing slip Credit: Packing slip offset
Cost of units, invoiced (Issue)	Must be asset account (or a valuation account for the asset account) that holds the amount of inventory sold. Credited when the sales order is invoiced.	Ledger transaction when a SO invoice is updated: Debit: Packing slip offset Credit: Packing slip Debit: Cost of Goods Sold Credit: Inventory
Cost of goods sold, invoiced (Consumption)	This account is an expense account and collects cost of goods sold. The account is debited when invoice is posted. Posting type: “Sales order consumption”.	Ledger transaction when a SO invoice is updated: Debit: Packing slip offset Credit: Packing slip Debit: Cost of Goods Sold Credit: Inventory
Revenue	The account is revenue one and holds revenue from sales. The account is credited when the invoice is posted.	Ledger transaction when a SO invoice is updated: Debit: Packing slip revenue Credit: Packing slip rev offset Debit: A/R Summary Credit: Revenue
Commission	This is an expense account. The account is debited when sales invoice is posted, Posting type: “Sales, commission”. Commission amount is debited to general ledger when goods are invoiced.	Ledger transaction when a SO invoice is updated: Debit: Commission expense Credit: Commission liability
Discount	If a discount ledger account is specified, the discount amount is debited, and the A/R summary account is debited with (Sales – Discount). If an account is not specified, then both the revenue and A/R summary account post as (Sales – discount). Posting occurs when goods are invoiced. Note: This does not include cash discounts. Cash discounts are not recognized until the payment is processed	Debit: AR Summary (Sales-Disc) Debit: Discount Credit: Revenue
Commission offset	This is a liability account. The account is credited when sales invoice is posted.	Ledger transaction when a SO invoice is updated: Debit: Commission expense Credit: Commission accrual
Deferred revenue on delivery
Deferred revenue offset on delivery
Deferred sales tax on delivery

Purchase Order Inventory Posting:

Cost of purchased materials received (Product Receipt)	This is an asset account. It is debited when product is received and credited when the purchase order invoiced.	Inventory Clearing Received Un Invoiced
Purchase expenditure, un-invoiced	In case of non-stocked items and procurement categories the un-invoiced purchase expenditure account will have a debit balance until the product receipt is fully invoiced. In this case you can consider setting an asset or expense account there. In other cases, the account usually doesn’t have a balance and isn’t transferred to ledger. Posting type is “Purchase expenditure, un-invoiced” for these transactions.	Accounts Payable Un invoiced
Cost of purchased materials invoiced (Inventory Receipt)	This is an asset account. The account is debited when the purchase order is invoiced. Posting type is “Purchase, inventory receipt”.	Finish Goods-Receipt
Purchase expenditure for product	Usually this account doesn’t have any balance. But in some cases it can have. For example when different currency rounding logic is used or a stocked item  is returned at a different price than average cost. Purchase expenditure for product account must be specified. You can consider to set profit or loss account there.	Cost of Returned Goods
Discount	Discounts	Vendor Discounts
Fixed receipt price profit	Credit cost variance when actual cost is lower than standard cost. Used if model group is set up to use standard cost.	Fixed Receipt Price Inventory Adjustment, Debit: Inventory – Actual Cost Debit:Std cost price offset-var.Credit: A/P Summary – Actual Credit: Std cost profit -variance
Fixed receipt price loss	Debit Cost variance when actual cost is higher than standard cost. Used if model group is set up to use standard cost.	Fixed Receipt Price Inventory Adjustment, Debit: Inventory – Actual Cost Debit: Std loss –variance Credit: A/P Summary – Actual Credit: Std cost profit offset-var
Fixed receipt price offset	Use this account to offset the standard cost profit or loss.	Finish Goods-Receipt, Often this account is the same as the inventory account.
Charge	Charges can be used to track the cost related to the purchase. It can be fright, insurance, loading/unloading of goods and so on.	Misc Charges
Stock variation
Purchase, accrual	The account is for recording liability. Is credited when the product receipt is posted and debited when the invoice is posted.	Accrued Purchased
Accrued sales tax on receipt
Fixed asset receipt
Purchase expenditure for expense	This is an expense account. The account is debited when instead of item used a procurement category in a purchase order.	Other Misc Expense
Prepayment

The accounting impact of Purchase Order :

1. Purchase Order product receipt (Or packing slip) posting.

2. On Purchase Order Invoice

PO Product Receipt

When receipt is posted, two sets of ledger entry is posted:

1.

Purchase expenditure, un-invoiced – Debit
Purchase, accrual – Credit

2.

Product receipt – Debit 
Purchase expenditure, un-invoiced – Credit 

The important thing here to notice is the set of ledgers. The first set is liability booking for vendor while the second set represents open inventory. Here we notice that Purchase expenditure, un-invoiced is offsetting both accrual and receipt but they act differently. Things will be clearer after we discuss PO Invoice accounting.

PO Invoice 

At the time of invoice, the accrual and product receipts are reversed, and main account are hit. Following are the set of entries:

1.

Purchase expenditure, un-invoiced – Credit
Purchase, accrual – Debit

Purchase expenditure for product – Debit 

Vendor balance (Accounts payable) – Credit

2.

Product receipt – Credit 
Purchase expenditure, un-invoiced – Debit

Purchase, product receipt – Debit 
Purchase expenditure for product – Credit

So here that the one set of account is vendor and other is inventory. The very important to notice here is to look closely at purchase expenditure, un-invoiced account. Please note that it is not necessary that this account balance will always be 0 which it looks like. This ledger is running separately for vendor and inventory and in case of purchase return order where the inventory is issues at weighted average cost, there is a great chance that the vendor will hit by some amount and inventory will hit by some other amount unless you use marking feature.

Remember to discuss this point with client during discussion. The second point is always maintained separate account for Purchase expenditure, un-invoiced and Purchase, product receipt as i have seen many clients preferring same account for both.

Inventory Posting:

Fixed receipt price profit	Credit the gained difference in relation to Standard cost. Offset to Inventory Profit or loss. Used if model group is set up to use standard cost.	Fixed Receipt Price Inventory Adjustment, Inventory journal transaction to record the receipt or increase in inventory: Debit:Receipt (Inventory@Std cost) Credit: Std cost profit (Variance)Credit: Profit (Actual cost)
Fixed receipt price loss	Debit the loss difference in relation to Standard cost. Offset to Inventory Profit or loss. Used if model group is set up to use standard cost.	Fixed Receipt Price Inventory Adjustment, Inventory journal transaction to record the receipt or increase in inventory: Debit: Receipt (Inventory@Std cost) Debit: Std loss (Variance) Credit: Profit (Actual cost)
Inventory issue (Issue)	Credit decreases to the inventory account.	Issue-Finish Goods, Inventory journal transaction to record the issue or decrease in inventory: Debit: Loss Credit: Issue (Inventory)
Inventory expenditure, loss (Loss)	Debit decreases to the inventory account.	Inventory Adjustment, Inventory journal transaction to record the issue or decrease in inventory: Debit: Loss Credit: Issue (Inventory)
Inventory receipt (Receipt)	Debit increases to the inventory account.	Finish Goods-Receipt, Inventory journal transaction to record the receipt or increase in inventory: Debit: Receipt (Inventory) Credit: Profit
Inventory expenditure, profit (Profit)	Credit increases to the inventory account.	Inventory Adjustment, Inventory journal transaction to record the receipt or increase in inventory: Debit: Receipt (Inventory) Credit: Profit
Inter-unit payable	If you are transferring item from one site to another or one product dimension to other, then the system checks if inter unit accounts are configured. If not it will through the error. The posting into these accounts actually happens if there is a difference in costs between from and to dimensions (site , product dimensions).
Inter-unit receivable	If you are transferring item from one site to another or one product dimension to other, then the system checks if inter unit accounts are configured. If not it will through the error. The posting into these accounts actually happens if there is a difference in costs between from and to dimensions (site , product dimensions).
Catch weight loss account
Catch weight profit account
Fixed asset issue	Account to be debited if item is issued to a fixed asset.
Price difference for moving average
Cost revaluation for moving average

Production Posting:

Estimated cost of materials consumed (Packing List Issue)	If Post physical inventory in the Inventory model group and Post picking list in ledger in the Production parameters are selected, then the estimated cost of raw material inventory is credited to general ledger during the Picking list update.	The picking list journal is used to record the estimated materials needed for a production order. It can be created manually or automatically by back-flushing. Debit: Picking list offset Credit: Picking list (Inventory)
Estimated cost of materials consumed, WIP (Packing List Offset Account)	If Post physical inventory in the Inventory model group and Post picking list in ledger in the Production parameters are selected, then the estimated cost of raw material inventory is debited to general ledger during the Picking list update.	The picking list journal in the Production module can be created manually or automatically. See Production setup section for more information. Debit: Picking list offset (WIP) Credit: Picking list
Estimated manufactured cost (Report As finished Receipt)	If the Post report as finished in ledger in the Production parameters is selected, the estimated value of the finished good is debited to general ledger during the Report-as-finished update.	The Report-as-finished journal is used to record quantities completed Debit: Report as finished (Inv) Credit: Report as finished Offset
Estimated manufactured cost, WIP (Report As finished Offset account)	If the Post report as finished in ledger in the Production parameters is selected, the estimated value of the finished good is debited to general ledger during the Report-as-finished update.	The Report-as-finished journal is used to record quantities completed Debit: Report as finished (Inv) Credit: Report as finished Offset
Cost of materials consumed (Issue)	When a production order is costed, the estimated material costs previously posted are reversed. The actual cost of raw materials is credited in the general ledger.	Debit: Issue offset (WIP) Credit: Issue (Inventory-raw material)
Cost of materials consumed, WIP (Issue Offset Account)	When a production order is costed, the estimated material costs previously posted are reversed. The actual cost of raw materials is debited in the general ledger.	Debit: Issue offset (WIP) Credit: Issue (Inventory-raw material)
Manufactured cost (Receipt)	When a production order is costed, the report-as-finished estimated finished good costs are reversed. The actual cost of the finished good is debited in the general ledger.	Debit: Receipt (Inventory - FG) Credit: Receipt offset account (WIP)
Manufactured cost, WIP (Receipt offset Account)	When a production order is costed, the report-as-finished estimated finished good costs are reversed. The actual cost of the finished good is credited in the general ledger.	Debit: Receipt (Inventory - FG) Credit: Receipt offset account (WIP)
Lean service WIP receipt
Lean service WIP clearing

Standard Cost Variance Posting:

Purchase price variance	It is needed to set a purchase price variance account if you use standard costing. This account is used to post difference between standard cost and price paid for the inventory. This account is balance one, so it can be as asset or liability. The balance of this account is usually periodically allocated on cost of goods sold, inventory, and work in process accounts. The account is debited in case the standard cost of the purchased inventory is lower than the price paid. The account is credited if the standard cost is higher than the price. The purchase price variances are calculated when product receipt or invoice is posted.
Inventory cost revaluation
Cost change variance
Production lot size variance
Production price variance	posts for price variance of materials or resources.
Production quantity variance	variances because of difference in quantity consumed of materials or resources.
Production substitution variance	variances because different material or resources was used.
Rounding variance	Account to be debited/credited due to rounding issues.