Overview
The Cost Element Account Detail functionality provides the ability for all Rootstock Cost Transactions to be broken down by cost element when transferred to the GL. This capability is controlled by a System Configuration setting.
Application
It may be a requirement that in the Financial Application, individual elements, such as Labor, Labor Overhead, and similar, cost needs to transacted to specific GL Accounts. The Cost Element Account Detail supports this functionality.
Prerequisites
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System Configuration
To make this functionality active, on the System Configuration record, set the “Cost Element Account Detail Active” to active.
NOTE This record and field maintainable by Rootstock Support only.
NOTE When this setting is active, it is active for all Subledger Accounts. The use of the “Cost Element Account Detail” is on a Subledger Account by Subledger Account basis.
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General Ledger Accounts
General Ledger Accounts must be defined.
Setup – Subledger Account
When the “Cost Element Account Detail” is active on the System Configuration record, a Subledger account is entered or maintained.
Fields
Header Portion of the Record
Subledger Account: This is a unique ID of the Rootstock Subledger Account.
Description: This is the description of the Rootstock Subledger Account.
GL Type: This identifies the uses for this account. Examples are Inventory, Cost of Sales, and similar. It is selected from the picklist dropdown.
GL Account ID: The Financial General Ledger Account assigned to this Subledger Account.
Cost Element Account Details Section
NOTE The following are General Ledger Account numbers.
GL Account for Material: When a Financial GL Account is selected, this overrides the GL Account ID in the Header Section for any Material Charges that are populated on the originating Rootstock Cost Transaction referencing this Subledger Account.
GL Account for Labor: When a Financial GL Account is selected, this overrides the GL Account ID in the Header Section for any Labor Charges that are populated on the originating Rootstock Cost Transaction referencing this Subledger Account.
GL Account for Labor Overhead: When a Financial GL Account is selected, this overrides the GL Account ID in the Header Section for any Labor Overhead Charges that are populated on the originating Rootstock Cost Transaction referencing this Subledger Account.
GL Account for Machine Overhead: When a Financial GL Account is selected, this overrides the GL Account ID in the Header Section for any Machine Overhead Charges that are populated on the originating Rootstock Cost Transaction referencing this Subledger Account.
GL Account for Material Overhead: When a Financial GL Account is selected, this overrides the GL Account ID in the Header Section for any Material Overhead Charges that are populated on the originating Rootstock Cost Transaction referencing this Subledger Account.
GL Account for Subcontract Labor: When a Financial GL Account is selected, this overrides the GL Account ID in the Header Section for any Subcontract Labor Charges that are populated on the originating Rootstock Cost Transaction referencing this Subledger Account.
GL Account for Subcontract Material: When a Financial GL Account is selected, this overrides the GL Account ID in the Header Section for any Subcontract Material Charges that are populated on the originating Rootstock Cost Transaction referencing this Subledger Account.
GL Account for Fringe Overhead: When a Financial GL Account is selected, this overrides the GL Account ID in the Header Section for any Fringe Overhead Charges that are populated on the originating Rootstock Cost Transaction referencing this Subledger Account.
GL Account for Freight: When a Financial GL Account is selected, this overrides the GL Account ID in the Header Section for any Freight Charges that are populated on the originating Rootstock Cost Transaction referencing this Subledger Account.
GL Account for Other Landed Cost: When a Financial GL Account is selected, this overrides the GL Account ID in the Header Section for any Landed Cost Charges that are populated on the originating Rootstock Cost Transaction referencing this Subledger Account.
Processing
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A transaction is entered in Rootstock which generates a Rootstock Cost Transaction.
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When the Rootstock Cost Transaction is transferred to the General Ledger
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At the point of the creation of the Individual journal entry when the GL Account associated with a Subledger Account is retrieved, the system checks to identify if any of the Cost Element Account Detail has been selected on that Subledger Account.
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For each of the unit cost elements on the Rootstock Cost Transaction, if a Cost Element Account Detail value has been selected, then a General Journal entry will be created using that account for the corresponding amount of the transaction.
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After creating the journal entries for all Cost Element Detail Accounts, a journal entry will be created using the ‘main’ GL Account for the remaining amount (if any).
EXAMPLE |
Header
|
|
Subledger Account
|
5100 – Cost of Goods Sold
|
|
GL Account (Primary)
|
5100
|
|
Cost Elements Account Detail
|
|
GL Account for Material
|
5110
|
|
GL Account for Labor
|
5120
|
|
Header
|
|
Subledger Account
|
5010 – Shipping Clearing
|
|
GL Account (Primary)
|
5010
|
|
Cost Elements Account Detail
|
|
No Associated Distribution accounts
|
Rootstock Cost Transaction has been created for a Sales Order Line Shipment.
|
Transaction Type
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SO Shipment
|
|
Transaction Qty
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2
|
|
Total Txn Amount
|
500.00 (150x2) + (100x2)
|
|
Unit Material Cost
|
150
|
|
Unit Labor Cost
|
100
|
|
Credit Account
|
5010 - Shipping Clearing
|
|
Debit Account
|
5100 – COGS
|
Financial Journal Entry Created for Cost Transaction (using Cost Element Account Detail)
|
Type
|
DR
|
|
Account
|
5110
|
|
Amount
|
300 (150 x 2)
|
|
Type
|
DR
|
|
Account
|
5120
|
|
Amount
|
200 (100 x 2)
|
|
Type
|
CR
|
|
Account
|
5010
|
|
Amount
|
500
|
SEE ALSO
