Create accounting identity

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

1. Start 'Accounting Identity. Open' (CRS630/B).

2. To create an ID, specify the accounting dimension number, accounting ID, and name.

3. Click New.
4. Accomplish the fields under the E panel.
   1. Specify a description, when applicable, a date range during which the accounting ID is valid, and specify whether it is open for entry.
   2. Select an account type.
      For a business account (dimension 1), select an account group and the type of account from this list:

      • 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), 'Suppl Payment Proposal. Open' (APS130), or 'Suppl Payment Proposal. Open' (APS630), any cash discount is deducted automatically 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.
   3. Press Enter or click Next.
5. Accomplish the access and responsibility, restrictions, and cost accounting components in the F panel.
   1. Define the access and responsibility by identifying the parameters under the Security Handling section:
      • 'Obj access grp': Object access group if the access to the accounting ID is to be restricted.
      • 'Responsible': Optionally, specify 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).
      • 'Del auth code': The delegation of authority code.
   2. Define the restrictions providing the information under the Restrictions section:
      • 'Curr connection': Whether the account is reserved for a specific currency
      • 'Currency': The used abbreviation for the currency
      • 'Sign lock': Whether positive or negative amounts are allowed
      • 'Qty mandatory': Whether quantity must be specified at transaction entry
      • 'Txt mandatory': Whether a text always must be entered at transaction entry
      • 'Enter bank op': Whether a bank operation code is required at transaction entry
      • 'DR/CR code lock': Define the debit or credit code lock
        For a business account (dimension 1), if the division is enabled for the debit and credit code management in 'Settings – General Ledger' (CRS750), you can specify whether, and when, transactions using the account must be assigned only either a debit or credit code. For alternatives 1-4, the update to the debit or credit code is performed when coding accounting entries in (GLS120) or during the update to the general ledger, depending on the type of transaction. These are the available alternatives:

        • 0='Function not used'. The account is not restricted in terms of debit or credit codes, meaning transactions using the account can be assigned a debit or credit code.
        • 1='Debit code'. All transactions using the account must be assigned the debit code specified in (CRS750).
        • 2='Credit code'. All transactions using the account must be assigned the credit code specified in (CRS750).
        • 3='Debit code on negative invoices'. If the transaction using the account belongs to a negative customer or supplier invoice, the transaction must be assigned the debit code specified in (CRS750). If the transaction does not belong to a negative invoice, no debit code lock is applied.
        • 4=’Credit code on negative invoices’. If the transaction using the account belongs to a negative customer or supplier invoice, the transaction must be assigned the debit code specified in (CRS750). If the transaction does not belong to a negative invoice, no credit code lock is applied.
   3. Define the cost accounting components under the Cost Accounting section:
      • 'CoC rule': Cost of capital rule
      • 'Var percent': A variable percentage used to calculate the variable portion of a general ledger or budget account
      • 'Resource driver': Optionally, the resource driver
   4. Specify the consolidation method under the Group Consolidation section.
   5. Press Enter or click Next.
6. On the G panel, define the cross-account reference check.
   1. 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 is not required 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.
   2. If you selected alternative 2, 4, 6, or 8, 'Account Identity. Def Account Cross Ref' (CRS631) is displayed. Specify a range of permitted values.
   3. Press Enter or click Next.
7. Specify names in other languages.
   1. If you intend to work with M3 in more than one language, select option 11 = 'Names/language' in (CRS630/B).
   2. In 'Accounting ID. Enter Names/Language' (CRS632), specify the name of the identity in each language.
   3. Press Enter or click Next.