G/L accounts when posting customer invoices

Adapted from the Leahy Consulting white papers "How do I know what G/L accounts will be used when posting customer invoices?", prepared for Macola® Progression (updated January 2006) and Macola® ES and 10 (updated July 2020).

Order Entry processes customer orders, prints the invoices and posts them. During posting, Macola® works out four general ledger accounts: sales, cost of sales, inventory and accounts receivable. Each one comes from a different file, and each one has its own fallback.

The four accounts

Account	Comes from	Keyed by	Falls back to
Sales	Product Category/Location Account file	The item's product category and the shipping location	The default sales account in A/R Setup
Cost of sales	Product Category/Location Account file	The item's product category and the shipping location	The default account in O/E Setup
Inventory	Material Cost Type/Location file	The item's material cost type and the shipping location	The default account in I/M Setup
Accounts receivable	The Customer Type file, per customer	The customer's type	The default account in A/R Setup

Check before you post, not after

If you are unsure the right accounts will be used, print the pre-post report first. It shows exactly which accounts the posting will use, while there is still time to fix the item or the customer. In Macola® ES and 10 it is the Pre-Post Invoice List; in Progression it is the Pre-Post Edit report.

The screens

Macola® ES and 10

File	Where it is
Product Category/Location Account	System menu → Distribution menu → Order Entry → Product Cat/Loc Account
Material Cost Type/Location Account	System menu → Distribution menu → Inventory Management → Material Cost Type/Loc
A/R Setup	System menu → Company menu → Package Settings → Accounts Receivable → Default Accounts tab
O/E Setup	System menu → Company menu → Package Settings → Distribution → Order Entry Setup → Default Accounts tab
I/M Setup	System menu → Company menu → Package Settings → Distribution → Inventory Management Setup → Default Accounts tab

All five screens are shown, with the account fields called out, in The set-up screens that hold G/L accounts.

Macola® Progression

File	Where it is
Product Category/Location Account	Order Entry → Maintain → Product Cat/Loc Accnt
Material Cost Type/Location Account	Inventory Management → Maintain
A/R Setup	Accounts Receivable → Maintain → A/R Setup → page 3
O/E Setup	Order Entry → Maintain → O/E Setup → page 3
I/M Setup	Inventory Management → Maintain → I/M Setup → page 2

1 2

1. Product Category and Location — the key Macola® matches against each invoice line.
2. Sales and cost of goods sold — the two accounts this screen supplies. Sales falls back to A/R Setup; cost of goods sold falls back to O/E Setup.

Product Category/Location Account maintenance in Macola® Progression.

A/R Setup, page 3 — the default accounts receivable and sales accounts.

O/E Setup, page 3 — the default cost-of-sales account.

I/M Setup, page 2 — the default inventory account.

Tip

Next step. Once invoices post to the right accounts, the remaining question is whether A/R agrees with the general ledger. Reconciling A/R to the general ledger covers the report to use and the entries that put the two out of step.

Support & contact

Our team is glad to help with anything from a quick question to a full implementation.

• PULSE software support — (513) 723-8095 · [email protected]
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