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Overview

Used to establish default Sales-related Sub-Ledger Account values, including AR Account, Sales (Revenue) Account and Cost of Sales (COGS) Account. All accounts are required except for Shipping Clearing, which is only required when Consolidated Fulfillment is not active (set under the ‘Order Processing’ tab).

Fields

User-added image NOTE Each account dropdown is filtered by the GL Types that are valid for each type of Sub-Ledger Account. (Navigation: System Setup > Sub-Ledger Accounts)

Accounts Receivable Account: The Sub-Ledger Account is debited when creating a Sales Invoice or credited when creating a Sales Credit Note.

note25 (1).png NOTE If Rootstock Financials is active, this Accounts Receivable Account is used in Sales Invoice processing only when the AR Account specified in AR Control or Customer Company doesn't have any associated Sub-Ledger Account.

Sales Account: The default Sub-Ledger Account carried to the Sales Order Line as the primary revenue account and credited when a Sales Invoice is processed.

Cost of Sales Account: The default Cost of Sales Sub-Ledger Account for the Sales Order Line which is debited when a shipment is processed in Order Fulfillment. When using pick, pack, and ship, the ship transaction debits this account.

Shipping Clearing Account: The default Shipping Clearing Sub-Ledger Account for the SO Line when using pick, pack and ship order fulfillment. This account is debited upon the "pick" transaction and credited when the "ship" transaction occurs (which then debits Cost Of Goods Sold).

Prepayment Invoice Sales Account: The Sub-Ledger Account (generally a deferred revenue account) credited when creating a Prepayment Sales Invoice, deferring revenue recognition until applied to a Sales Invoice (at which time this Account is credited).

Sales Discount Account: When a Sales Discount is applied, this is the default Sub-Ledger Account that will be debited.

Synchronize COGS with Revenue:  This feature will hold the COGS amounts in the Deferred COGS Account thru the Shipment process and move them to the COGS Account as part of the Sales Invoice Transfer to Accounts Receivable.

Use Work Order for Configured Line COGS: When checked, when the Sales Order Issue is performed, the Cost of Goods Sold for Configured Sales Order Lines (and Stock Lines processed as Configured) will be derived from the Work Order associated with it instead of the current Weighted Average Cost.

VAT Clearing Account:  This field serves as a default VAT Clearing account to be used as needed when a clearing account is required and no override is specified on the associated VAT Class.

Create Distributions for Line Discounts:  This indicator causes accounting entries to be made for Sales Invoice Line Discount amounts (DR Discounts & CR Revenue).

Freight Charge Account:  The default Sub-Ledger (revenue) Account debited for Sales Order Freight charges.

Packaging Charge Account: The default Sub-Ledger (revenue) Account debited for Sales Order Packaging charges.

Handling Charge Account: The default Sub-Ledger (revenue) Account debited for Sales Order Handling charges.

Sales Tax Payable Override Account: By default, Sales Tax is charged to the applicable Sub-Ledger Accounts set on the Tax Location set on the Customer Ship-To Address. This is the default override for said Accounts.

Sales Order Payment Clearing Account: The Sub-Ledger Account (generally a deferred revenue account) debited when processing a prepayment, deferring revenue recognition until applied to a Sales Invoice (at which time this Account is credited). GL Type must: Unearned Revenue.

Sales Order Payment Cash Account: The Sub-Ledger Account debited when a prepayment is applied to an invoice. GL Type must: Other or OTH Clearing.

Deferred Sales Account: The deferred Sales Sub-Ledger Account used when using the Amortization feature. Must be a valid Sub-Ledger Account (aka Mfg Account) where the GL Type: Unearned Revenue.

Deferred Cost of Sales Account: The deferred Cost or Sales Sub-Ledger Account used when using Amortization feature. Must be a valid Sub-Ledger Account (aka Mfg Account) where the GL Type: Deferred Costs.

Prepayment Exchange Rate Variance Acct: This field holds the account used to record the gain or loss on currency exchange that occurs at the time of prepayment application to a Sales Invoice.

NOTE image.png NOTE The 'Prepayment Exchange Rate Variance Acct' drop-down lists the Sub-Ledger Accounts that satisfy the below conditions:

The Sub-Ledger Account should belong to the Division of this SO Control.
The 'GL Type' on the Sub-Ledger Account should be 'OTH Clearing' or 'Other' or 'Variance'.

NOTE image.png NOTE The Companies using the multi-currency and prepayments, must set up this account in order to approve the Sales Invoice that has prepayments applied for a non-home currency Customer (if the exchange rate is different between the Prepayment Detail and the Sales Order Invoice).

Title	SO Control Account Defaults Tab

URL Name	SO-Control-Account-Defaults-Tab

SO Control Account Defaults Tab