About GL Posting Information for AP Invoices

Every invoice posted in Accounts Payable (via the AP Transaction Entry form) updates the General Ledger based on the GL accounts defined for other modules throughout the system.

Updates to General Ledger occur automatically when you post an invoice via the AP Batch Process. The GL accounts defined in other modules determine both the debits and credits associated with an invoices. Depending on the initial setup and the type of transaction you enter, the system may default a GL account without allowing an override, default a GL account with override allowed, or may require entry.

The following table describes the defaults on a transaction without retainage, use tax, or discounts.

Table 1. GL Account Defaults for AP Transaction Entry

Trans Type

Default GL Account (Debit)

Default GL Account (Credit)

1-Job

The JC Department account assigned to the job/phase/cost type.

The Job pay type designated for the pay category (in AP Pay Category. If you did not specify a pay category, or you are not using one, the default is the Job pay type designated in AP Company Parameters.

2-Inventory

The IN location account for the material.

The Expense pay type designated for the specified pay category (in AP Pay Category). If you did not specify a pay category, or you are not using one, the default is the Expense pay type designated in AP Company Parameters.

3-Expense

The AP Vendors account for the vendor, or if a material, the HQ Materials account.

4-Equip

The EM department account for the equip/cost code/cost type.

5-Work Order

The EM Departments account for the equip/cost code/cost type.

6-Purch Order

Default for all PO types (Job, Inv, Exp, Equip, WO), is the same as like-named transaction types.

The Expense pay type designated for the specific pay category (in AP Pay Category) except for Job POs, in which case the default is the pay category's Job pay type. If you do not specify a pay category, or you are not using one, the default is the Expense or Job (for Job POs) pay type designated in AP Company Parameters.

7-Subcontract

The JC Departments account assigned to the job/phase/cost type of SL.

The Subcontract pay type designated for the specified pay category (in AP Pay Category). If you did not specify a pay category, or you are not using one, the default is the Subcontract pay type designated in AP Company Parameters.

8- SM Work Order

Defaults from SM Departments for Misc Work Completed lines or the override account by call type and/or cost type. See SM Departments for more information.

The GL account for the line's pay type.

Note: The Pay Type specified for an invoice line determines the GL credit account. GL accounts for Pay Types are assigned in AP Payable Types.

The GL debit account is specified on the invoice line and defaults based on the line type. If you selected the Allow GL Account Override check box in the Company Parameters form of the related module (JC, EM, or IN), you may override the defaulted account. For SM Work Order lines, no override is allowed.

The following table displays information on how the system posts to accounts on transactions with retainage, use tax, and/or discounts.

Table 2. GL Account Defaults for Transactions with Retainage, Tax, and Discounts

Transaction

GL Account (Debit)

GL Account (Credit)

Transaction with Retainage

Gross + retainage amount follows the Trans Type (i.e. Job, Inventory, Expense, Equipment, Work Order, Purchase Order, Subcontract).

Retainage amount posted to Pay Type for ‘Retainage’ for the specified pay category (in AP Category). If no pay category is specified or pay categories are not used, uses pay type for 'Retainage' specified in AP Company Parameters. Gross less retainage follows Pay Type for specified Trans Type (see Table 1 above).

Transaction with Discount

If Post Discounts Offered to GL and Net Amounts to Subledgers option in AP Company Parameters is not checked, gross amount follows Trans Type (discount posted later at payment time).

If Post Discounts Offered to GL and Net Amounts to Subledgers option in AP Company Parameters is checked, gross less discount amount follows Trans Type. Discount amount is posted to the Discount Offered GL Account (from AP Company Parameters).

Gross amount follows Pay Type for specified Trans Type (see Table 1 above).

Transaction with Use Tax

Gross + tax follows the Trans Type. However, if the transaction is posted to a job, and the tax code has a phase and cost type assigned to it in HQ Tax Codes, the tax amount is posted to the GL account for that cost type.

Tax amount to HQ Tax Codes Sales Tax Payable account, gross amount follows Pay Type for specified Trans Type (see Table 1 above).