General ledger control table

During initial implementation, your Inform ERP support team configures your General Ledger Control table. The remainder of this article describes the role of the G/L table, how to set it up, along with an example; however, you should not make any modifications here without first consulting DDI Customer Care.

What does the G/L Control Table do?

This utility drives user directed processes to specific General Ledger accounts to ensure the system runs smoothly, consistently, and accurately.

Account specifications in the G/L Control Table work in conjunction with branch and divisional settings to ensure that operational and financial information maintains an appropriate level of separation.  For multi-branch users, it is customary to set the main branch account in the G/L Control Table, and then configure Branch G/L settings to determine which suffix is appropriate. See Assign branch level general ledger accounts.

Considerations before editing the General Ledger Control Table

If you would like an accounting expert to coach you through the process of revising G/L Control Table, contact DDI Customer Care. We don't recommend making any changes without this consultation. When you work with Customer Care to update this file, it is important to consider the following:

• Whether a system re-index is possible.  This process will change data and may be irreversible. For more information, see General ledger re-indexing.
• Whether the transaction journals involved can be re-indexed.  The Sales, Warranty Control, Finance Charge, and Inventory Control Journals are 100% reindexable.  The Cash Receipts and Cash Disbursements Journals are limited.  The Accounts Payable and General Journal are not reindexable.
• Whether you want to apply the change as of the beginning of a new fiscal year.

Assign applications to the G/L Control Table

1. Go to Accounting > General Ledger > G/L Control Table.
2. Click Edit.

   

3. In the G/L Account column, click , and then choose the account that you want to assign to the following Applications, which are required for optimal system operation.
   • Accounts Receivable.  This account is affected when sales occur and customer balances are paid or adjusted.  It is classified as a Current Asset on the Balance Sheet.
   • Accounts Payable.  This account is affected when purchases and expenses are entered and when checks are produced.  It is classified as a Current Liability on the Balance Sheet.
   • A/R Cash Account.  This account serves as the default bank for Cash Receipts and can be overwritten on the transaction and branch level. It is classified as a Current Asset on the Balance Sheet.
   • A/P Cash Account.  This account serves as the default bank for Cash Disbursements and can be overridden on the transaction and branch level.  It is classified as a Current Asset on the Balance Sheet.  If there is no setting, the system will revert to the A/R Cash account.
   • A/R Cash Discount.  This account records reductions in payment from customers as specified in individual account specified terms.  It is classified as Revenue on the Income Statement.
   • A/P Cash Discount.  This account records reductions in payments to vendors as specified in individual vendor terms.  It is classified as Cost of Sales on the Income Statement.
   • Sales.  This account records the amounts (not including sales tax) invoiced to customers.  It is classified as Revenue on the Income Statement. This application can be overwritten at the branch level or the product line level.
   • Sales Returns.  This account records the amounts (not including sales tax) of return invoices.  It is classified as Contra-Revenue on the Income Statement.  If there is no specification, the system will revert back to the Sales account. This application can be overwritten at the branch level or the product line level.
   • Sales Discounts.  This account is affected when a sale is discounted at the time of making the order.  It is classified as Contra-Revenue on the Income Statement.  If there is no specification, the system will revert back to the Sales account.
   • Sales Allowances.  This account records reductions in sales amounts (not including sales tax) given directly on the invoice (a lower price is offered for products that were manufactured and considered to be damaged or improperly made). It is classified as Contra-Revenue on the Income Statement.  If there is no specification, the system will revert back to the Sales account. 
   • Freight Out.  This account records the amount of freight invoiced to customers on sales orders.  It is classified as Revenue on the Income Statement.
   • Handling.  This account records the amount of handling invoiced to customers on sales orders and should be set to the same account as for Freight Out.
   • Sales Tax.  This account records the amount of tax collected on sales to customers.  It is classified as a Current Liability on the Balance Sheet.
   • Cost of Sales.  This account records the value of merchandise at the time of sale.  It is classified as Cost of Goods Sold on the Income Statement. This application can be overwritten at the branch level or the product line level.
   • Freight In.  This account records the amount of freight billed by vendors in order to get product to the point of sale.  It is classified as Cost of Goods Sold on the Income Statement.
   • Inventory.  This account records the value of inventory as affected by sales, purchases and adjustments.  It is classified as a Current Asset on the Balance Sheet. This application can be overwritten at the branch level or the product line level.
   • Direct Ship Inventory.  This account is reserved for movements of inventory from vendor to customer and should be positioned immediately after the regular Inventory account on the Balance Sheet.  It is classified as a Current Asset on the Balance Sheet.
   • Inventory Change.  This account records changes in inventory value that are not the result of purchasing and selling.  It is classified as Cost of Goods Sold on the Income Statement.  If there is no specification, the system will revert back to the Inventory account.
   • A/P Receiving Variance.  New for users of inform Version 17 or higher.  This account is used in A/P Invoice Entry to record any differences between the value of a linked PO and the amount entered to the inventory G/L account.  It is classified as Cost of Goods Sold on the Income Statement.  If there is no specification, the system will use the Non-Inventory account.
   • Vendor Return Inventory.  New for users of Inform Version 17 or higher.  This account is reserved for the value of merchandise earmarked for return to the vendor that has come back into stock from a return sales order.  It is classified as a Current Asset on the Balance Sheet.
   • Un-Invoiced Purchase Orders.  New for users of Inform Version 17 or higher.  This account is used at the time of end of month close to accrue the value of un-invoiced material.  It is classified as a Current Liability on the Balance Sheet.
   • Non-Inventory.  This account records transactions that do not qualify as inventory and for inventory transactions that are not posted according to best practice.  It is classified as a Current Asset on the Balance Sheet for placement next to regular inventory.  If there is no specification, the system will revert back to the Inventory account.
   • Damaged Inventory.  This account is affected when a customer return sales invoice and it is designated “discard.”  It is classified as Cost of Goods Sold on the Income Statement. To avoid placing the material back into stock, a damaged inventory cost account is applied instead.  If there is no specification, the system will apply the account specified in Inventory Change.
   • Retained Earnings.  This account records a once per year profit or loss based in the net total of the balances in all Income Statement accounts.  It is classified as a Stockholders Equity account on the Balance Sheet.
   • Profit & Loss Break Account.  This is a non-posting account that determines the point of separation between Balance Sheet and Income Statement accounts. For financial report accuracy, all Balance Sheet accounts must be numbered lower and all Income Statement accounts must be numbered higher.
4. Set the following optional Applications, depending on business processes.
   • POS Deposits.  This account serves as a quasi-accounts receivable to offset point of sale transactions, in which merchandise is exchanged directly for cash.   It is classified as a Current Liability on the Balance Sheet.  This account is required for any organization with a point of sale operation.  It is not required for distributors making all sales on account. It also records deposits for customers that are linked to a sales order.
   • Miscellaneous Income.  This account records the amount of miscellaneous revenue billed to customers that is not attributable to merchandise, freight or tax.  It is classified as Revenue or Other Income on the Income Statement.
   • Finance Charge.  This account records the amount of monthly service charges added to customer accounts that are past due.  If is classified as Other Income on the Income Statement.
   • Rebates Receivable. This account is affected when a sale of a vendor-rebated item is invoiced. It will only post to this account if rebate contracts are set up in Inform. It is classified as a Current Asset on the Balance Sheet.
   • Rebate Income.  This account is affected when a sale of a vendor-rebated item is invoiced and offsets the posting to the Rebates Receivable account.   It will only post to this account if rebate contracts are set up in Inform. It may be classified as Revenue or Cost of Sales on the Income Statement.
   • Warranty Pending.  This account is affected in place of inventory when a return credit is processed through Sales Order Entry and a Warranty Tag is created.  It is classified as a Current Asset on the Balance Sheet.
   • Warranty Receivable.  This account is affected when the warranty claim is submitted to the vendor for the expected amount to be received.  It is classified as a Current Asset on the Balance Sheet.
   • Warranty Discrepancy.  This account is affected when there is a difference between the expected amount and the actual amount replaced by the vendor.  It is classified as Cost of Sales on the Income Statement.
   • Inventory Receipts.  This account is affected upon stock receipt of merchandise and is an alternative to the more commonly used workflow in which a vendor invoice input affects the G/L. It is classified as a Current Liability on the Balance Sheet.  Most users prefer to affect inventory value at the time of vendor invoice entry to ensure accuracy, and this field is not commonly used.
   • Stock Transfer in Transit.  This account is affected when merchandise is transferred between warehouses of different branches.  It is classified as a Current Asset on the Balance Sheet.  If there is no specification, the system will use the account set in the Inventory Change field.
   • A/P Sales Tax.  This account is used by Canadian customers to expense provincial sales tax paid on purchases.  It records amounts entered in the tax field on the A/P Invoice Entry screen and is classified as an Operating Expense on the income Statement.
   • Direct Ship Sales.  This account is reserved for sales and returns of merchandise on Drop Ship transactions and should be positioned immediately after the regular Sales account on the Income Statement. This application can be overridden at the branch level or the product line level If there is no specification, the system will use the account set in the Sales field.
   • Direct Ship Cost of Sales.  This account is reserved for costs of merchandise on Drop Ship transactions and should be positioned immediately after the regular Cost of Sales account on the Income Statement. This application can be overridden at the branch level or the product line level. If there is no specification, the system will use the account set in the Cost of Sales field.
   • A/R & A/P Branch Division Exchange.  This account is used for multi-branch organizations to maintain a balanced General Ledger for cash receipts payment and AP invoice transactions involving more than one branch.
   • Division Transfer Expense.  This account is reserved for multi-division organizations and is used exclusively to record the revenue from merchandise moving between divisions.

     NoteA Division is a single branch or group of branches with common ownership or tax identification number.  In general, the merchandise is transferred at cost, which means that the cost and revenue will be exactly the same. For more information, see Manage company divisions and Configure company branch sites 

   • Division Transfer Handling Expense.  This account is reserved for multi-division* organizations and is used exclusively to record a percentage based fee for moving merchandise.

Sample General Ledger Control Table

What to do if the G/L Control Table is updated

If the G/L Control Table is edited after go-live, you may need to remap prior transactions to conform to the new settings. To determine if a G/L reindex is needed and to understand the implications of performing one, see General ledger re-indexing.