An alert to trigger on items where the GL accounts on the service and sales code direct to different accounts.
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Overview | Samples | Variables | Alert Functionality | Best Practices & Tips | Related Alerts
Overview
Overview
This process will ensure your Sales and Service codes are not tied back to conflicting GL revenue and COG accounts. Items should have matching revenue GL and COG accounts, regardless of the process that is used to relieve inventory.
The COGS and Revenue GL accounts should be identical. Otherwise, you will be recognizing revenue and/or costs differently depending on the transaction type (i.e. SalesOrder vs. Service Call).
Run Schedule: Weekday mornings
Type of Output: Email
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Sample
Sample
The Left Column indicates what is different - COGS or Revenue. If an Item Record has both Revenue and COGS differences, the Item Record will be listed twice (once for COGS and once for Revenue).
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Variables
Variables
This process does not have any variables.
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Alert Functionality
Alert Functionality
1. The alert is looking at the sales code and service code on the item and reporting on those items where the GL accounts for the sales code do not match the GL accounts on the service code.
For example, the sales code on the item below will direct revenue to account 8646410:
While the service code will direct revenue to account 8646412:
The item will post revenue to one GL account if it is used on a sales order and a different GL account if it is used on a service call. Best practice is that the revenue for the item should post to the same account regardless of the transaction.
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Best Practices & Tips
Best Practices & Tips
1. We don't know if your codes are correct; we are just comparing Sales Code to Service Code GL's and alerting on those that are different. You will need to weigh your cost-benefit to determine if a Journal Entry to correct past entries is worthwhile or not. For example, if you sold 100 machines each worth $20,000.00, then you may want to consider a journal entry to correct the past entries.**
2. Our logic works off the best practice to have the same COGS account for both sales and service and then the same Revenue account for both sales and service on the item level. That way when an item is used/sold on either a sales order or a service call it will hit the same GLs. If you use different GLs for items used on a contract than what you use for non-contract, then you'll use e-automate's advanced bill codes explained in this link. In short, assign billing account codes on items added to the bill code of the contract. That way the item uses the billing account code on the contract's bill code and not the GL selections from the item level.
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Related Alerts
Related Alerts
ID512 - Daily Alert when Sales Order Items with Specified Sales Code are fulfilled.
ID806 - Inventory Turns Report
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