General Ledger Category Maintenance

Menu Path: General Ledger $Images\bluerarw.gif$ Module Setup $Images\bluerarw.gif$ General Ledger Category Maintenance

Alternate Menu Path: System Administration $Images\bluerarw.gif$ Module Setup $Images\bluerarw.gif$ General Ledger Category Maintenance

Purpose

Add, update, or delete categories
Specify that a category is required for a module.
Define a ratio type for a category.

Overview

Use General Ledger Category Maintenance to refine the definitions of the standard account types (AS, LI, EQ, IC, EX). Categories limit the range of accounts available for a specific program. This allows for added control over the accounts being used in transaction programs, and avoids mistakes that might otherwise be made.

Example In accounts receivable when entering a write-off, the user may only see accounts that are defined as A/R Write-Off accounts. Whereas, for check printing users will only be allowed to write checks using an account defined with a category of Cash.

The following are required categories for the Accounts Receivable, Accounts Payable, and General Ledger modules:

Module	Required Category	Comments
Accounts Payable	A/P Clearing	This account stores the value of goods received into a warehouse, but not yet invoiced in accounts payable.
Accounts Payable	A/P Discounts	This account stores discounts related to payment terms.
Accounts Payable	A/P Trade
Accounts Payable	A/P Write-off	This account is used when writing off accounts payable invoices.
Accounts Receivable	A/R Absorption	This account is used for absorbing small customer overpayments and underpayments.
Accounts Receivable	A/R Allowance	This category is not currently used.
Accounts Receivable	A/R Clearing	When deposits are entered, the deposits are posted to the relevant Cash and A/R Clearing accounts. Then as payments are applied, the A/R Clearing account is reduced along with the Accounts Receivable account.
Accounts Receivable	A/R Discount	This account stores discounts related to payment terms.
Accounts Receivable	A/R Trade
Accounts Receivable	A/R Write-off	This account is used for writing off accounts receivable invoices (bad debt).
Accounts Receivable	NSF Charge	When a deposit is returned by the bank for non-sufficient-funds, this is the account to charge when you are charging the customer a fee for the returned deposit.
Accounts Receivable	Finance Charge	This is an income account to store the value of assessed finance charges.
Accounts Receivable and Accounts Payable	Cash
General Ledger	Retained Earnings
Accounts Receivable, Accounts Payable, and General Ledger	Currency Exchange Gain/Loss

In addition, categories are used in the calculation of some common financial ratios, such as the current ratio (current assets/current liabilities). You can also create your own category and include it in a ratio. It is important therefore, to give careful thought to the accounts definition.

Finally, if you are setting up intercompany accounts, the first step in defining the intercompany elimination account is to set up an intercompany category. When you create accounts with this category, the accounts are considered intercompany elimination accounts.

By default, the following general ledger categories are set up:

A/P Clearing
A/P Discounts
A/P Other
A/P Trade
A/P Write-off
A/R Absorption
A/R Allowance
A/R Clearing
A/R Discount
A/R Other
A/R Trade
A/R Transfer
A/R Write-Off
Absorbed - Labor
Absorbed - Overhead
Accumulated Depreciation
Cash
COGS
Currency Exchange Gain/Loss
Current Assets
Equity
Finance Charge
Fixed Assets
Income Taxes
Input VAT
Input VAT Clearing
Input VAT Pending
Input VAT Write-off
Inter-Company Buy
Intercompany Due From
Intercompany Due To
Interest expense-general
Interest expense-long term
Inventory
Inventory - Supplies
Inventory Change
Long-term Liabilities
NSF Charge
Other
Other Assets
Other Expenses
Other Income
Other Liabilities
Other Payables
Other Taxes
Output VAT
Output VAT Variance
Retained Earnings
Sales
Sales Taxes
Scrap Expenses
Shareholder Loans
Statistical
Transfer Buy
Transfer Purchase
Transfer Sales
Unrealized Currency Gain or Loss
Variance - Labor
Variance - Overhead
Work In Process - Labor
Work In Process - Material
Work In Process - Overhead

Creating a General Ledger Category

To create a general ledger category:

If your company uses consolidation ledgers, verify the ledger ID for which you want to create a category is entered in the Ledger ID field.
Click the New button in the ribbon.
Enter a name for the category in the Category field.
Click the Lookup button to the right of the Ratio Type field, and select a ratio for the category.
Select the modules for which the category is required.
If the category will be used for intercompany elimination accounts, select the Intercompany check box.
Click the OK button in the ribbon. The general ledger category is created. If you made the category required in step 4, you must now create a default account for the category in Account Maintenance.

Note If you do not create a default account for the category, the category is automatically deleted.

To edit an existing category, enter the category in the Category field, click the Update button in the ribbon, edit the category information, and then click the OK button in the ribbon to save the changes.

Note If you edit a category and make the category required for any module, you must select the default account for the category. If accounts already exist for the category, you must select an account in System General Ledger Account Maintenance. If accounts do not yet exist, you must enter a new default account in Account Maintenance.

You can also use the Delete button in the ribbon to delete categories that are not in use.

Ribbon Home Tab Buttons

Button	Description
Exit	Click this button to close the General Ledger Category Maintenance window.
New	Click this button to create a new general ledger category.
Update	Click this button to update the selected general ledger category.
Delete	Click this button to delete the selected general ledger category.
OK	Click this button to accept an action. This button is only available after you click the New, Update, or Delete button in the ribbon.
Cancel	Click this button to cancel an action. This button is only available after you click the New, Update, or Delete button in the ribbon.
First	Click this button to display the first general ledger category.
Prev	Click this button to display the previous general ledger category.
Next	Click this button to display the next general ledger category.
Last	Click this button to display the last general ledger category.

Fields and Buttons

Field or Button

Description

Main Tab Fields and Buttons

Field or Button	Description
Ratio Type	Click the Lookup button to select the financial ratio associated with the category.
G/L	Select this check box if the category is required for the General Ledger module. If you select this check box, the category must have a default account associated with it before the module can be accessed.
A/P	Select this check box if the category is required for the Accounts Payable module. If you select this check box, the category must have a default account associated with it before the module can be accessed.
A/R	Select this check box if the category is required for the Accounts Receivable module. If you select this check box, the category must have a default account associated with it before the module can be accessed.
Intercompany	Select this check box if the intercompany elimination accounts will be used with the category. To set up intercompany elimination accounts, you must create a category with this check box selected. For more information, see General Ledger Intercompany FAQ.