Overview

This section is designed to illustrate the relationship between xTuple ERP transactions and the General Ledger (G/L) Accounts they impact. Think of this section as being a reference tool you can use to help you track G/L transactions.

The transactions have been listed by Module—and only those transactions which create G/L records have been included. For each transaction, we have noted the G/L Accounts affected by the transaction.

I/M Module Transactions

The majority of I/M Module transactions are initiated in the Inventory Transaction section. This is the case with our first transaction type: Miscellaneous Adjustment. You would enter a Miscellaneous Adjustment to change the Quantity on Hand (QOH) for an Item in a particular Item Site. Using a Miscellaneous Adjustment, QOH can be adjusted either upwards or downwards:

If an Item is located in more than one Warehouse, you have the option of moving quantities of the Item from one Warehouse to another. During an Inter-Warehouse transfer, you increase QOH at the receiving Warehouse and decrease QOH at the originating Warehouse.

Inventory may need to be scrapped for a variety of different reasons. Entering a Scrap transaction decreases Inventory value by the Cost of the quantity being scrapped. The following Accounts are affected:

Expense transactions are like Scrap transactions, in that they decrease Inventory value. The debit side of the transaction is assigned to an Expense Category. The Accounts used for Expense Categories will vary from site to site:

Items may be received into Inventory via a number of different paths:

• As a purchased Item from the P/O Module
• As manufactured Item from the W/O Module
• As a Credit Memo Item from the S/O Module

If none of these paths is being used, you may receive Inventory using a miscellaneous Material Receipt. When an Item is received into Inventory via a Material Receipt, the Inventory value of that Item is increased:

The Transform utility enables you to transform quantities of a source Item into quantities of a target Item. As far as the source Item is concerned, its Inventory value is decreased. The reverse is true for the Target Item, whose Inventory value is increased. The following Accounts are affected:

To avoid the unnecessary confusion that can occur if negative QOH balances are used for planning purposes, xTuple ERP gives you the ability to reset negative QOH values to "0." Adjusting Inventory from a negative value to "0" increases the value of the affected Inventory.

At the end of a physical Inventory count, the count totals are posted using Count Tags. A posted Count Tag affects Inventory value in either a positive or a negative sense, depending on whether counted QOH was found to be greater than or less than recorded QOH. The Inventory Asset Account will be adjusted accordingly:

P/D Module Transactions

Whenever the Standard Cost for an Item is updated, the G/L will record the update. If Standard Cost is increased, the Inventory Asset will be debited for the amount of the increase multiplied by the Quantity on Hand for the Item in question. Both netable and non-netable quantities will be included in the calculation. If the Standard Cost is decreased, the opposite records will be generated, as shown below:

P/O Module Transactions

Some might expect the posting of a Voucher to be recorded as a P/O Module transaction. However, the system gives ownership over Voucher postings to the A/P Module. Similarly, the process of receiving a Purchase Order Item is owned by the S/R Module.

One exception to the pattern of ownership involves the return of Purchase Order Items. While purchased Items are returned using the S/R Module, the system considers returns to be P/O Module transactions. As shown below, the affected Accounts vary based on whether the return involves an Inventory or a non-Inventory Item:

S/O Module Transactions

While you might expect the posting of an Invoice to be recorded as an S/O Module transaction, the system considers posted Invoices to be owned by the A/R Module. The posting of S/O Credit Memos, however, is owned by the S/O Module.

It can be a bit complicated to follow the transaction records for posted S/O Credit Memos. The reason for this is that when a Credit Memo is posted, a couple of different things happen. For one, the billing portion is owned by the A/R Module. Second, the merchandise the Customer is returning must be placed back into Inventory. It is the Inventory return process which is owned by the S/O Module, as shown below.

W/O Module Transactions

Owing to the complexity of Work Order processing, multiple transaction records may be generated from the W/O Module. Perhaps the most basic transaction involves the issuance of materials to a Work Order. As shown below, materials are first removed from Inventory and then transferred to the Work Order as work-in-process (WIP) assets:

Returning materials from a Work Order creates records opposite to those generated when materials are issued:

When materials are scrapped from a Work Order, the WIP Asset Account is credited for the amount of the Scrap quantity—and the Manufacturing Scrap Account is debited, as shown below:

When posting Production for a Work Order, a number of different transactions occur—and each transaction generates its own G/L record:

• Materials that have not already been issued to the Work Order are issued to the Work Order.
• Manufactured Item quantity is entered into Inventory.
• Work Order Operations—that is, setup and run time records—are posted.

A slightly different set of records is generated when posting Production for a Breeder Item. To begin with, the Breeder Item itself must be accounted for. Because Breeder Items are transient in nature, their effect on Inventory is temporary. When Production is posted for a Breeder Item, a reversed pair of transactions is generated. These paired transactions effectively cancel each other out. As shown below, Breeder Items are both consumed by and received from manufacturing:

Next, the material required for Breeder Production must be issued to the Work Order. The following Accounts are affected when material requirements are issued to Breeder production:

The Co-Products and/or By-Products which result from Breeder Production must be received into Inventory, as follows:

And finally, if during Production you vary the standard quantity when distributing Co-Products and/or By-Products, the following Accounts will be affected:

When you correct Production posting, the records generated are the opposite of those generated when Production is posted. Only the materials and the manufactured Items are corrected when posting a correction. Any Operations that were posted must be corrected separately.

The records generated when posting miscellaneous Production are similar to those generated when posting regular Production—the main difference being that when Operations are posted, the Inventory Cost Variance Account is used instead of the Labor and Overhead Costs Account.

When Work Order Operations are posted separately from Production posting, the following Accounts are affected:

The same Accounts affected when posting Operations are impacted in reverse order when correcting Operations posting:

When closing a Work Order, you may elect to post Material Usage and/or Labor variances. The sense of the records will depend on the transaction. If any variances exist for the Work Order in question, the following Accounts will be affected:

S/R Module Transactions

Sales Order Items are removed from Inventory at the point when they are issued to Shipping. Issuing Stock to Shipping affects the following Accounts:

Prior to being shipped, Sales Order Items that have been issued to Shipping may be returned to Inventory. Returning Stock to Inventory reverses the transaction records created when Stock was issued to Shipping:

When Stock is shipped, the Shipping Asset Account is cleared out—and the Cost of Sales Account is debited, as shown below:

If a Shipment is returned to Shipping, the action reverses the transaction records generated when the Order was shipped:

When Purchase Order Items are received, they are entered into Inventory and the P/O Liability Clearing Account is credited for the Standard Cost of the received Items. If the Items being received are non-Inventory Items, the appropriate Expense Account will be debited. In either case, if any P/O Line Item freight charges exist, they will be debited:

If you need to correct the quantity received for a Purchase Order, you may do so using the "Correct Receiving" option on the right-click menu of the "Uninvoiced Receipts" screen. The "Uninvoiced Receipts" screen is found in the Vouchers section of the P/O Module. Corrections to received quantity are considered to be S/R Module transactions. The Accounts affected will vary depending on whether the correction decreases or increases the original received quantity, as shown below for both Inventory and non-Inventory Items. Freight expenses may also be corrected:

A/P Module Transactions

Even though Vouchers may be posted from the P/O Module, these transactions are owned by the A/P Module. Posting a Voucher affects several Accounts. The Accounts Payable (A/P) Account is credited for the Voucher amount. The P/O Liability Clearing Account is debited for the Standard Cost of the Items received against the given Purchase Order. If there are differences between the Vouchered amount and the Standard Cost of received Items, the Purchase Price Variance Account will be debited or credited to reflect those differences. Finally, Freight charges may be added, depending on the details of the transaction.

If you make a miscellaneous distribution when posting a Voucher, the following additional Accounts will be affected. The debit side of the transaction will vary depending on whether a miscellaneous Account or an Expense Category is selected:

When a miscellaneous Voucher is posted, the debit Account may vary—depending on the circumstances of the transaction. As with regular Vouchers, though, the Accounts Payable Account is credited, as shown below:

Purchasing Discounts may be taken when a Voucher is selected for payment. The following Accounts are affected when applying a Discount to a Voucher:

When posting Checks, the Bank Account selected at the time of posting determines which Asset Account will be used. This is true whether posting a single or multiple Checks. The following Accounts are affected:

The Accounts affected differ slightly when a miscellaneous A/P Check is posted, as shown below:

Miscellaneous A/P Credit Memos may be used, among other things, to register prepaid amounts paid to Vendors. The following Accounts are affected when a miscellaneous A/P Credit Memo is posted:

Similarly, miscellaneous A/P Debit Memos may be posted, with the reverse Accounts being affected:

A/R Module Transactions

The G/L records generated when Invoices are posted are fairly straightforward. The Accounts Receivable (A/R) Account is debited, and the Sales Account credited. Several other Accounts may also be credited, depending on whether any additional charges are associated with the Order:

When posting a Cash Receipt, the Asset Account specified for the selected Bank Account is debited, while the Accounts Receivable (A/R) Account is credited:

If you enter a Cash Receipt and do not apply the cash to an open Invoice (and your system is not configured to enable Customer Deposits), the following Accounts will be affected when the Cash Receipt is posted. In this example, a miscellaneous A/R Credit Memo will be generated—a Credit Memo which may be applied at a later point. The Credit Memo portion of the transaction is represented by the second pair listed below:

If your system is configured to enable Customer Deposits, then the following alternate Accounts will be affected when you post an unapplied Cash Receipt balance. The Credit Memo portion of the transaction is represented by the second pair listed below:

The Deferred Revenue Account will be cleared when the Credit Memo generated by the Customer Deposit is applied to A/R open items:

If you make a miscellaneous distribution when posting a Cash Receipt, the following additional Accounts will be affected:

When S/O Credit Memos are posted, the S/O Module owns the Inventory return process; however, the billing aspects are owned by the A/R Module. The following Accounts represent the billing portion of an S/O Credit Memo posting:

Miscellaneous A/R Credit Memos may be used, among other things, to register prepaid amounts received from Customers. The following Accounts are affected when a miscellaneous A/R Credit Memo is posted:

Similarly, miscellaneous A/R Debit Memos may be posted, with the reverse Accounts being affected:

When charging a Customer Credit Card on the Sales Order "Payments" tab, you get the same transactions as when posting an unapplied Cash Receipt. A miscellaneous A/R Credit Memo will be generated—a Credit Memo which should be applied at a later point—and the Cash is posted to the Asset Account for the relevant Bank Account:

G/L Module Transactions

G/L transactions entered from the G/L Module may affect the broadest possible spectrum of G/L Accounts. For example, the following actions are user-defined, meaning the Accounts affected will vary from case-to-case:

When posting a Bank Adjustment, the sense of the transaction will vary based on the Adjustment Type: