Create accounting identity
This procedure is used to create the accounting identities, such as business accounts and cost centers, used in the general ledger.
The accounting identities for all the dimensions are created in the same program. The accounting identity in accounting dimension 1, the first part of the accounting string, is always an account in the general ledger and requires more information than dimensions 2 to 7.
Before you start
Before you start, you must define at least one account group for structuring accounting identities for level five in 'Account Group. Open' (CRS633).
Follow these steps
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Start 'Accounting Identity. Open' (CRS630/B).
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To create an ID, specify the accounting dimension number, accounting ID, and name. Click New.
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On the E panel, specify a description, when applicable a date range during which the accounting ID is valid, and specify whether it is open for entry.
Select account type
- For a business account (dimension 1), select an account group and the
type of account on the E panel:
- Balance account (included in the balance sheet). A report for all balance accounts can be created in 'General Ledger. Print Balance Lists' (GLS510).
- Profit and loss account (included in the income statement)
- Accounts receivable account
- Accounts payable account
- VAT account type: 0 = Not a VAT account; 1 = VAT payable account; 2 = VAT receivable account; 3 = Revenue account; 4 = Purchase account; 5-9 = User-defined VAT analysis account
- Fixed asset account: 0 = Not a fixed asset account; 1 = Used for direct preliminary entry of an asset in 'Fixed Asset. Open Preliminary' (FAS180) when specifying a supplier invoice using this account in 'Supplier Invoice. Record' (APS100); 2 = Used for fixed assets under construction. If alternative 1 or 2 is selected, additional information is saved using information categories 15 (Invoice number for cash discount) and (Preliminary fixed asset number) in the general ledger at invoice entry. When paying the invoice in 'Suppl Payment. Enter Manual' (APS120) or 'Suppl Payment Proposal. Open' (APS130), any cash discount is deducted automatically, either from the preliminary asset or the fixed asset under construction, provided that the 'Automatic cash discount reduction' check box is selected in 'Settings – Fixed Assets' (FAS900).
- Period accounting account: 1 = Source account; 2 = Receiving account. When a transaction is recorded on a period accounting account, 'Period Accounting Table. Open' (GLS470/E) is displayed automatically for entry of periodization details.
- Revaluation account: For calculation of unrealized exchange rate differences in 'Unrealized Exchange Rate Variance. Update' (GLS160)
- Budget account
- Cost accounting account
- Bank account (requiring that a currency be selected)
- Filing account: Whether transactions connected to this account is filed
- Reconciliation account: For reconciliation in 'Account. Reconcile Externally' (GLS180) and 'Account. Reconcile Internally' (GLS185)/(GLS385)
- Suspense account: Clearing account for supplier invoices
- Petty cash account: For petty cash transactions specified in 'Petty Cash. Open' (GLS095)
- Inventory account: Whether the account is used for valuation of inventory and work in process, WIP, in the Current Assets component group.
Define the access and responsibility
- Press Enter. On the F panel, specify an object access group if the
access to the accounting ID is to be restricted, and optionally, the ID of the person
responsible for the account. This responsible person can be a user entitled to authorize
supplier invoices, for example, depending on your selection in 'Settings – Accounts Payable' (APS905).
Define the requirements
- Specify these information:
- Whether the account is reserved for a specific currency
- Whether positive or negative amounts are allowed
- Whether quantity must be entered at transaction entry
- Whether a text always must be entered at transaction entry
- Whether a bank operation code is required at transaction entry.
- For cost accounting purposes, specify a cost of capital rule, a variable percentage
used to calculate the variable portion of a general ledger or budget account, and
optionally, a resource driver. Press Enter.
Define cross account reference check
- On the G panel, specify how the cross account reference check is done at transaction
entry for each accounting dimension:
- 1 = Required field. The value specified does not required to be a defined accounting ID.
- 2 = As alternative 1. However, the value must be within the interval defined in the account cross reference.
- 3 = Required field. The value must be an accounting ID.
- 4 = As alternative 3. However, the value must be within the interval defined in the account cross reference.
- 5 = A value is not allowed to be entered.
- 6 = Optional field. The value does not need to be an accounting ID but must be within the interval defined in the account cross reference.
- 7 = Optional field. The value must be an accounting ID.
- 8 = Optional field. The value must be an accounting ID and within the interval defined in the account cross reference.
- If you selected alternative 2, 4, 6 or 8, 'Account Identity.
Def Account Cross Ref' (CRS631) is displayed. Specify a range of permitted
values. Press Enter.
Enter names in other languages
- If you intend to work with M3 in more than one language, select option 11 = 'Names/language' in (CRS630/B).
- In 'Accounting ID. Enter Names/Language' (CRS632), specify the name of the identity in each language. Press Enter.