Change Debit AR Account Based on Part Number

Hi all,

For some background our finance department creates invoices for lease terms. The debit amount should be moved to a separate AR account, however the amount is currently going to a default AR account instead. These lease terms always have the same part number, so I was hoping there is a way to decide which account to use based on part number.

Now I have done a little bit of research and everywhere I look people are saying to use product groups in GL control. However, based on what I am seeing this won’t work on the AR side of things. So then would modifying posting rules be the way to go with solving this? If so, what would that posting rule look like? I am new to the financial side of Epicor so I really could use a bit of guidance here.

Also side question: I have the posting rule tech reference, but is there any sort of basic examples or walkthroughs dealing with posting rules?

What Aspect of “AR” are you referring to?

  • The transactions that happen prior to invoicing (like a customer shipment)
  • The transactions that happen when an invoice is posted?
  • The transactions that happen during cash receipts?

Depending how your company settings are configured, the most basic GL flow is:

  1. PO Placed (no GL transaction)
  2. PO Received to Inventory
    (PUR-STK part tran creates GL trans: DB:Inventory, CR: ACCRUED RECEIVINGS)
  3. Cust Shipment from Inv
    (STK-CUS part tran creates GL trans: DB: A/R Clearing, CR:Inventory)
  4. Invoicing creates GL trans:
    4.1 DB: COS Account, CR: A/R Clearing
    4.2 DB: Sales/Revenue Acct, CR AR Account (not to be confused with A/R Clearing)

Which of those would you want to customize?

I honestly have no idea as a lot of this financial jargon is a bit over my head. I asked someone in Finance/Accounting and they said it would be when the invoice is posted & that happen during cash receipts. They also specified the following when I asked.

" AR is debited at invoicing not a credited….and sales is credited not debited.
When we do a cash receipt, we’d want the proper AR account to be credited as well.
The same customer might have invoices that need to go to different Accounts receivable accounts so we cannot make it customer specific."

Hopefully that makes some sense.

To understand how AR Invoices are posted you can open GL Transaction Type and load “AR Invoice”.

From there you can expand Posting Rules and see how invoice details are processed and how accounts are selected, the one you are referring to is below

As you can see the account is taken from the bill to customer GL Control, if that is not assigned it will go and check the one in Company Configuration.

You can customize the rule based on any criteria, you can identify your special invoices using a UD field or something else and in the rule you can make sure that for those invoices it goes to the account you want.

I probably got those two backwards - As I’m not an accountant. I have a 50/50 chance of getting DB’s and CR’s right but seem to fall well under 50% of the time.

And it looks like they’re talking about my point numbered 4.2, and the actual cash receipts part (#5, had I included it).

I would not modify the posting rules.
What I would do is separate the customer into 2 customers, the retail and the lease. This will allow you to keep the leasing as a separate AR account based on the customer G/L Control.
There is no other way to keep the AR accounts separate using the “vanilla” version.
Once you start modifying posting rules, you will have to review them with each update and users will constantly want changes, since they know it’s possible.

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I just looked at the document “Epicor ERP Accounts Receivable Transaction Hierarchy”.

No mater what type of invoice (Adv Billing, Shipment, Deferred Revenue, etc…), the hierarchy for the AR Acct is always:


And if we’re taking a poll, I’d go with using the Customer context GL Control too.

@rbucek is this close to what you guys just did?

Your company may be set up to use Product Groups. If so, check the GL Accounts associated with them. That solved our similar issue.

Brenda, Product Groups will help with the Sales and COS but not the AR Account. Customer G/L Control is the only way to separate AR accounts.
Generally as a rule, you would use a Trade account and an Intercompany account. Intercompany customers would have a GL control pointing to the intercompany AR account and the others would have no control and use the company default AR G/L Control.

I appreciate the responses, however I really do think that making a custom posting rule is what our finance department is looking for. I navigate to GL transaction type maintenance, and then to the Post Invoice Amount to Accounts Receivable rule. How would I create a conditional in here to specify what account to use for each part number?

There is a long list of items under variables here, but none of them are part number.

Yes, the Finance department is often inefficient with their reporting. “Put everything in the Journal!”

This is a mistake and really makes the GL unmanageable. If the purpose is to get a report of receivables by part, it would be far easier to do so by altering the Open AR report.

I understand, it’s the only tool they use but not everything is a nail. They should justify the cost of not just the modification but the testing and checking at every update.

And all the time “fixing” it when it does what they asked for, but not what they really want.

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Hi Scott Jenkins,
You can map the GL control code in the customer maintenance with the required receivables account

For the lease customer AR account may be “10001”
For other customer AR account may be “10002”.

Which customer GL Control is used when the Sold to is the Main Customer Acct (without a GL Control), and the Bill To is the secondary customer acct (with the special GL Control)?