Clearing Accounts > Company Config

Hello Jared: When a PO is received in Vantage, the system DR various accts. (based on Part Class, Product Group, etc.) and CR the Clearing Account. When the AP invoice is entered in Vantage, then it DR the Clearing account and CR Accounts Payable. At month end, if you have received PO's & you have not yet entered the invoice from the Vendor, the clearing account may carry a balance across fiscal peroids. The balance in the Clearing account should reconcile to the `Received but not Invoiced'report found under: Financial Management/Accounts Payable/Reports.

The Variance account is for manufacturing variances and you can define multiple accounts to be used for purchase price variances in `Accounts Payable GL Accounts Maintenance' found in Financial Management/Accounts Payable/Setup. If you do not define variance accounts, the variance account in control accounts is used for any variance in costs associated with the difference between a purchase order and an A/P Invoice for items received to inventory.

If the PO is linked to a job, any variance is posted to WIP. If costs remain in WIP when a job is closed and there are no outstanding shipments records, the system will prorate the remaining cost between the Variance and the COS accounts, based on the quantities that were shipped to customers and received to inventory.

I feel your pain regarding the chart of accounts. When we went from 6.1 to 8.03.408 we took the opportunity to completely redo our chart of accounts so that it was actually logical.

HTH,

Virginia Joseph
Deep Hole Specialists
440-543-8157


--- In vantage@yahoogroups.com, "k99ja04" <jallmond@...> wrote:
>
> I have a question about Control Accounts under Company Config. What transactions does the Clearing account participate in? Is this like Income Summary used to close out a period and normally carries no balance? Also the Variance acccount here, is that the default used for Purchase Price Variance if not defined within Part Class?
>
> I am by no means a controller, and I only have 3 semesters of accounting under my belt, but I swear our chart of accounts was defined by a monkey.
>
> Thanks,
> Jared
>
I have a question about Control Accounts under Company Config. What transactions does the Clearing account participate in? Is this like Income Summary used to close out a period and normally carries no balance? Also the Variance acccount here, is that the default used for Purchase Price Variance if not defined within Part Class?

I am by no means a controller, and I only have 3 semesters of accounting under my belt, but I swear our chart of accounts was defined by a monkey.

Thanks,
Jared