Our accounting group has a question about part class: One of our sites has a stock inventory part that needs to go into our raw materials inventory account. For another site, it is treated as a supply item which needs to be expense to a supply account. How have other users dealt with this?
Journal entry at the end of the month.
I have a handful (5) of posting rule mods that I created when we added a site.
The one scenario those mods did not cover was what you mentioned. And as I stared into the abyss of more mods, I decided to just tell accounting that this one scenario was not doable, and you’ll have to journal 4 accounts at month end. It’s fine.
To wit,
- Inventory part class is tied to 1300.RID.00
- For PDC site, this flexes to 1300.RID.62
- (Why not 1300.RID.00? Long story, but that’s due to the rule mods I created [if div = PDC then dept = 62])
- One of our expense classes is 7180.RID.24
- In PDC, it flexes to 7180.PDC.62 and that is set up as a valid account
- (If it were not set up, it would fail back to 7180.RID.24, and that would be very bad)
- At month end, we journal everything in 7180.PDC.62 into 1300.PDC.62.
Reason is that PDC does not have any non-qty-bearing parts that are sellable (unlike the manufacturing plant which has myriad). So we know for sure that anything that hits 7180 in PDC should have gone to 1300.
Thanks for the quick response! I’ll pass it on but I don’t think our accountants are going to love making more manual journal entries
Fair enough.
Have you done posting rule modifications before?
It is a better way. Just a pain to set up.
Yes I’ve done a few customizations in posting rules. However the interface to manage them is pretty kludgy so I try to minimize my time spent there