Valid Chart of Accounts

July 24, 2019 in General Ledger

Purpose

This function is used to create and maintain rules to control what Chart of Accounts can be used for individual transactional functions in the system. You can specify a subset of available account codes for any transactional function that has a Chart of Account or Account Posting prompt. By doing so you can limit the account selections available to your users so they are more likely to post to the correct chart of account and less likely to get ‘creative’.

For example, in Bank Reconciliation you may restrict the available GL accounts to Bank Charges, Bank Fees and Interest accounts. In Supplier Invoices, you may restrict the available accounts to expense accounts and in Stock Issues, you may restrict the accounts to Samples and Damaged Stock.

For each ‘Procedure’ (transactional function) you can restrict chart of account input to a specific subset of accounts. When a user is using a procedure that has a ‘Valid Chart Of Account’ list, if they enter an account that is not on the “valid” list, a supervisor is required to enter an override password to allow the entry of the account entered. Note that if you are using the Job Costing system, you can set up a separate (different) list of accounts that are valid for use with jobs.

NOTE: If you set up valid account use for the Purchase Order function (for sundry purchases), then you should consider setting them up for the Purchase/Shipment Receipt functions as well.

Data Input

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Step 1 – Procedure

Choose a Procedure

Select a ‘Procedure’ (transaction function) you wish to enter valid chart of accounts against, or perhaps to modify an existing list. Note that the list of procedures available is made up of all the routines within Online Advantage which have a chart of account or general ledger account posting input. The procedures are grouped by module in the list.
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Step 2 – Details

Password to allow posting

Enter a ‘Password to allow posting’ here that can be used for supervisor override. When an account is entered that is not on the valid list, this password must be entered to allow its use. Note: You can also use the system override password to accept non-valid accounts in all procedures.

See related topic: Passwords.

Auto Allocation Type

Select the auto allocation type to be used for the procedure from the standard choice provided.

See related topic: Automatic Allocations.
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Step 3 – GL Posting

Account

If you enter a list of accounts here, then the procedure will only accept entries that are on the list. Using the search option in the selected procedure will only show accounts that are on the list.

Enter a chart of account that you want to allow GL postings for in the selected procedure.

Use the ‘Add’ icon to add the ‘Account’ to the list.
Use the ‘Delete’ icon in order to remove ‘Accounts’ from the list.
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Step 4 – Job Costing Posting

Account

If you enter a list of accounts here, then the procedure will only accept entries that are on the list when posting to Jobs. Using the search option in the selected procedure will only show accounts that are on the list.

Enter a chart of account that you want to allow Job Costing postings to be made from this procedure.

Use the ‘Add’ icon to add the ‘Account’ to the list.
Use the ‘Delete’ icon in order to remove ‘Accounts’ from the list.
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Step 5 – Default Posting Type

Default Posting Type

Select the required ‘Default Posting Type’ for the procedure. The options are: General Ledger, Job Costing, Shipments or Work Orders. Not all these options are available for all procedures – you will only see the options that are valid for the procedure you have chosen.

Normally the default posting method for all procedures is General Ledger, however, you can set-up a different default method per procedure if required. For example, for sundry items on purchase orders, you could set it to default to a ‘job posting’, and for manual issues from stock, you could set it to default to ‘work order’ posting.

If no default is selected, then the default posting method will be General Ledger.
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