Updates to GL
When you capture work completed for an SM work order and process invoices for customer billing, the system updates information to the related module (where applicable) and General Ledger.
The updates to General Ledger are controlled by the interface settings defined in SM Company Parameters and the GL Interface levels defined in the related modules.
- To interface work completed data to related modules, you must check the appropriate
interface boxes on the Interfaces tab. Interface options include EM, IN, JC, PR, and
JC.Note: If you are using the Purchase Order module (PO), the system automatically updates PO when you post a PO batch using SM Purchase Order Entry. Therefore, no interface setting is required.
- For updates to General Ledger, you must define the interface levels in the related
modules (based on work completed line type) as follows:
Note: If the work completed lines are for a job-related work order, then in addition to the settings discussed above, the JC interface flag must be checked to update the costs to JC. The GL accounts updated will come from JC Departments based on the phase/cost type specified on the work order.
- Equipment / Miscellaneous / Inventory — The GL Usage Interface level in SM Company Parameters must be Summary or Detail.
- Labor — You must select the Interface PR to GL check box in PR Company Parameters. When PR Ledger Update is run, a summarized entry is posted to GL for each applicable account.
- Purchase — You must set the GL Expense Interface Level to Summary or Detail in PO Receipt Expense Initialize (accessed by selecting in PO Company Parameters).
When you capture work completed, the system updates the related module and creates entries in General Ledger. When this update occurs, the GL accounts affected depend on the work completed line type, the department assigned to the service center on the work order, and the offset accounts defined for the related module.
- Customer Work Orders - An additional GL update occurs when the work completed line is invoiced via SM Invoice Review. When you post an invoice batch, the system creates GL entries using the Revenue account or Revenue WIP account (if tracking WIP) defined for the work completed line, with offsetting entries to the Revenue GL account defined for the receivable type in AR Receivable Types.
- Flat Price Work Orders - The update to GL occurs when you bill the work order scope, rather than work completed lines. Work completed lines are not billable, as they are included in the flat price amount. You will generally only enter work completed for flat price scopes if you need to capture the related costs. In this case, updates to GL will occur for the incurred costs, but no additional revenue updates will occur.
- Job-related Work Orders - Billing is handled via Job Billing or Accounts Receivable (if not using Job Billing). The system will perform the standard GL updates defined for those modules.
If you track WIP for call types, the system performs one additional update to GL upon completing a scope. The amount posted to the Cost WIP account will be moved to the Cost account defined for the line type, and the amount posted (during invoicing) to the Revenue WIP account will be moved to the Revenue account defined for the line type.