Article

Article Body

Overview

The Rootstock Sub-Ledger functionality defines a detailed manufacturing Sub-Ledger account structure independent of but mapped to the Financial General Ledger Accounts. A separate set of Sub-Ledger Accounts must be created for each Division. Each Rootstock Sub-Ledger Account is mapped to a Financial General Ledger Account. The mapping between the Sub-Ledger and the General Ledger Accounts can be One-to-One or Many-to-One.

NOTE This many-to-one mapping capability supports the definition of a very detailed Sub-Ledger Account structure which can be rolled into a more simplified Financial General Ledger chart of accounts.

A Sub-Ledger Account may be further defined to support more detailed Financial Application Journal Entries by activating the “Cost Element Account Detail” function. See the article Cost Element Account Detail for further details.

Application

At the time an operational transaction is processed in Rootstock ERP, Inventory Cost Transactions, which contain Sub-Ledger Accounts and cost details, are created. Corresponding Journal Entries are also created and passed to the Financial Application.

Prerequisites – Prior to entering Sub-Ledger Accounts

The Company Master must exist
The Division Master records must exist
The Financial General Ledger / Chart of Accounts must exist
The Manufacturing User entering the Sub-Ledger Accounts must have the corresponding Division selected on their Manufacturing User record.

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Sub-Ledger Accounts

Process Overview

Define the General Ledger Accounts, which comprise the Financial Chart of Accounts.
Define the Rootstock Sub-Ledger Accounts and associate the Sub-Ledger Account with the appropriate General Ledger Account.
Select the Rootstock Sub-Ledger Accounts on the required Master / Control records.

Inventory Commodity Code
Company Master
Division Master
Sales Order Control
Product Group
Product
Purchase Item Master
Inventory Item Account

A Rootstock transaction is entered and processed.
Rootstock accesses the appropriate record (Step 2), and based on the type of transaction, the Inventory Cost Transaction is created using the appropriate Sub-Ledger Accounts.
Rootstock automatically creates a corresponding Financial Application Journal Entry to send to the designated Financial Application.

Processing – Creating Sub-Ledger Accounts

Access the Sub-Ledger Account Function
Select the ‘New Sub-Ledger Account' button to add a new Sub-Ledger Account.
Complete the following fields:

Sub-Ledger Account: The Rootstock Sub-Ledger Account identifier. This is the identifier that is selected on the various Rootstock Master/Control records.
Description: The description of the Sub-Ledger Account.
GL Type: GL Type of this Rootstock Sub-Ledger Account. The GL Type is used to filter the picklist of Sub-Ledger Accounts on various master/control records.
General Ledger Account: Financial General Ledger Account to which the Rootstock Sub-Ledger Account is mapped.
GL Account ID: This is the Account on the Financial side that this Mfg Account is associated with. When debits or credits are generated in Rootstock using this Mfg Account, they are posted to the GL against the GL Accounts defined here.

NOTE The 'General Ledger Account' and 'GL Account ID' fields are mutually exclusive. The 'GL Account ID' field will be displayed if the 'Financial System Interface' on System Configuration is set as 'Rootstock'. Otherwise, the 'General Ledger Account' field will be displayed.

Click Save Button.

Processing – Select Sub-Ledger Accounts on Master/Control Records

After the Sub-Ledger Accounts have been created, the various master and control records must be updated with the account selections. Please refer to related articles for additional details - links are provided below.

Company Master - Company Master (see the section on "Accounting Tab")
Division Master - Division Master Accounting Tab
Sales Order Control - SO Control Account Defaults Tab
Product Group - Product Groups (see the section on "Accounts Tab")
Product - Product Master Accounts Tab
Inventory Commodity Code - Inventory Commodity Code Accounting Tab
Inventory Item Account - Inventory Item Accounts

Processing – Additional Sub-Ledger Account settings

Additional records could require Sub-Ledger Account selections depending on certain system default settings.

Allow COGS Account on Indirect/Service Items: When this field is checked on the System Default record, the Cost of Goods Sold Sub-Ledger Accounts may be used for the procurement of indirect or service items, as well as expense Sub-Ledger Accounts. The Sub-Ledger Account will need to be set on the Purchase Item Master record for the field Indirect/Service Expense Account.
Cost Element Account Detail Active: When this field is checked on the System Configuration record (accessible by Rootstock Support only), the user is able to define Sub-Ledger Accounts based on the cost elements of an Item (material, labor, overhead, etc.). See the article Cost Element Account Detail for further details.

Title	Sub-Ledger Accounts

URL Name	Sub-Ledger-Accounts