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Posting Accounts From setting on Invoice Set-up

  • 1.  Posting Accounts From setting on Invoice Set-up

    Posted Jul 30, 2020 06:16 PM
    The invoice set-up allows you to select posing accounts from either Item or Customer.  The documentation only makes reference to the following:

    "Choose Item or Customer to use the set of posting accounts as default accounts.

    Many of the posting accounts you assign to customer records in Receivables Management and to items in Inventory Control are used to track similar revenue or expense accounts. For example, you can assign different posting accounts to track Cost of Goods Sold amounts for individual items and for customers. Choose the posting accounts assigned to items, or those assigned to customers, to be suggested as default entries if the items and customers aren't assigned matching posting accounts."

    What are some of the consideration for selecting Item or Customer. In one company , we use Posting from Item, but in another that we are setting up we are considering using Customer. Are their any drawbacks or limitation from using Posting from Customer.


    Keith Paul
    VP Business Management Systems
    UNICOM Engineering, Inc.
    Plano TX
    Academy - Online Interactive Learning from Experts

  • 2.  RE: Posting Accounts From setting on Invoice Set-up

    Posted Jul 31, 2020 07:40 AM
    Hi @Keith Paul ,

    I think it really comes down to how your company runs.

    From Customer works well if you have a very simple chart of accounts that contains only 1 account for Revenue, Inventory, COGS, etc. as the card only allows 1 of each Account type to be designated. If you use this with SOP then all your revenue gets booked to one account and it can be harder to isolate the successful (or unsuccessful) items or business lines from the GL.  There are other reports that can help internally to identify which items aren't selling, but presenting that information in a GL report or financials will be difficult. There's also the question of whether or not whoever sets up your customer cards really knows the chart well enough to determine the correct posting accounts.  They very well could, but it becomes extra important that they do when they are making the posting account decisions.

    From Item works better if you have multiple Revenue, COGS, etc. accounts across the company as it lets you decide on an item by item basis where to book it. It gives you much more flexibility in how you segment data in your GL for financial statement purposes.

    With most of the clients that I've worked with, the "From Item" ends up being the better option because they have multiple posting accounts per area (Revenue, COGS, etc.) OR we recognize that in their case using "From Item" even if they only have single posting accounts by type (revenue, COGS, etc.) presents more options should they expand or change their chart...and users would already be used to putting accounts in there as opposed to having to learn a new process when you switch between from Customer and from Item.

    Does that make sense?  Just my personal thoughts.



    Samantha Higdon ,CPA,CGMA
    Lagom, LLC
    Carmel IN

    Academy - Online Interactive Learning from Experts

  • 3.  RE: Posting Accounts From setting on Invoice Set-up

    Posted Jul 31, 2020 11:14 AM
    It all comes down to how you are used to seeing your profitability on a P/L. If you are a "Sales by Region/Territory" etc., type company, then posting accounts by customer makes more sense, because it facilitates setting up the proper sales and cogs based on customer territory. Conversely, if you are "Sales by Product Category" etc., type company, then posting accounts by item is more common, because presumably your chart of accounts would have that type of segment representation.

    If the rebuttal is, "we do both", then there's always eOne Solutions Flexicoder :)

    Mariano Gomez Bent, MVP, Dynamics Credentialed Professional
    Director of Technology

    Academy - Online Interactive Learning from Experts

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