Default Accounts

Texada SRM is designed to post automatically to certain pre-selected General Ledger accounts. These pre-selected accounts are called DEFAULT ACCOUNTS. General Ledger default accounts are the axis around which the entire accounting system pivots.

Because SRM uses pre-selected accounts for each posting program, most accounting programs do NOT prompt to select accounts for debit or credit entry.

These defaults can be maintained in the Default Account window in the "General Ledger" parameters on the Accounting tab of the Configure System Settings.
An operator must be assigned a Security Role that allows permission to the Accounting - Default Accounts in order to access this table.

For example, Post Customer Payments on the Accounts Receivable menu is designed to credit A/R and debit the Method of Payment selected each time a customer payment is entered. It would be too repetitive to be asked for debit or credit every time. So the software automatically posts to the pre-selected accounts, BY DEFAULT.

CURRENCY

Type C for Canadian, U for U.S. funds, or A for Australian funds, or select the currency from the drop-down list provided.

The default accounts are organized by currency, so that separate G/L posting accounts may be maintained by Currency.
For example, there may be both an American and a Canadian Bank Account, and an American and Canadian Accounts Payable or Accounts Receivable.

A window is provided on each G/L account field to lookup the correct account number as outlined in G/L Account Search.

BANK (A/P PAYMENTS)

Enter an asset account to be debited with the checks posted from Accounts Receivable or Daily Close cash balancing, and credited by checks paid for Accounts Payable.

ACCOUNTS RECEIVABLE

Enter an asset account to be debited with On Account invoices, and credited with customer's On Account payments.

Note: Posting by Division to this 'A/R Control Account' is controlled by the Activate G/L Posting By Division flag in Support Application Parameters.

DROP SHIP ACCOUNT

This field is only active if the Drop Ship feature for Inventory has been activated from the Support Application Parameters.

ACCOUNTS PAYABLE

Enter a liability account to be credited with purchase invoices from your suppliers and debited with your invoice payments (checks).

Note: Posting by Division to this 'A/P Control Account' is controlled by the Activate G/L Posting By Division flag in Support Application Parameters.

A/P INVOICE DISTRIBUTION SUSPENSE

Enter a liability account to be used as a temporary holding account for A/P invoices that are split into multiple invoices with different due dates for payment in A/P Invoice Distribution Details.
This cannot be the same as the Accounts Payable control account for this currency.

DISCOUNT TAKEN ON A/P

Enter a revenue account to be credited when an invoice is paid early and a discount is taken.
e.g. If Invoice terms were 2% 15 days and the invoice was paid within 15 days, then the 2% discount would be posted here.

DISCOUNT GIVEN ON A/R

Enter an expense account to be debited with the discount expense for customers that pay early and take a discount.
e.g. If Invoice terms were 2% 15 days NET 30 and the invoice was paid within 15 days, then the 2% discount would be posted here.

This account is also used when making minor adjustments to customer's accounts, such as clearing a small overpayment or small short payment.

Many firms also write-off (or clear) unpaid finance charges to this account in order to keep the accounts as up to date as possible.

An expense account must be entered even if your firm does not give discounts or allow adjustments to accounts or write-off unpaid finance charges.

FINANCE CHARGES

Enter a revenue account to be credited with Finance Charge revenue. A revenue account must be selected, even if your firm does not charge finance charges on overdue accounts.

DONATIONS RECEIVED

This applies to charity and donation transactions entered using the PT Donations Software.

CASH SALES

Enter the asset account to be debited with any cash sales recorded using Miscellaneous Cash Receipts .
This program would be used when inventory is not setup to record sales NOT On Account.

It is recommended that the Cash Sales be posted to a Cash Clearing Account instead of directly to the Bank Account. This provides the ability to balance the cash and record the bank deposit separately.

PAYROLL BANK ACCOUNT

Enter the asset account to be credited with payroll checks. This applies only to the Payroll module. Otherwise, enter your Bank Account number.

EXCHANGE ACCRUAL

Enter the liability account to be used for exchange rate postings for this currency.
The exchange percent is setup in Currency Codes and also must be activated by Texada Support using the flag in Support Application Parameters.

• On equipment purchases from a Vendor with this currency, this liability account is credited for a higher valued currency by the exchange amount, and the Inventory Account from Sales Product Class or Rental Product Class is debited.
  When the currency value is lower, the exchange amount is debited to this liability Exchange Accrual account and the Inventory Account is credited.
• On equipment sales and rentals to Customers with a higher valued currency, this liability account is debited for the currency exchange amount and the Revenue account from Sales Product Class or Rental Product Class is credited.
  When the currency value is lower, the exchange amount is credited to this liability Exchange Accrual account and the Revenue Account is debited.
• On Invoiced services, the postings of the exchange amount are to this liability account and to the revenue account from Contract/Invoice Services.
• On Damage Waiver charges, the postings of the exchange amount are to this liability account and to the revenue account assigned below in DEFAULT ACCOUNTS.
• On Post Bad Debts and Post Collections when the customer currency is different from the currency defined in Company Information

This Exchange liability account is also used when making money transfers in Miscellaneous Journals, from a bank for one currency to a bank for another currency that requires an exchange rate adjustment.
Refer to Currency Codes for a more detailed explanation of this type of transaction.

DUTY/BROKERAGE ACCRUAL

Enter the liability account to be credited for Duty/Brokerage expenses when equipment is purchased from a Vendor with this currency. The Inventory Account from Sales Product Class or Rental Product Class is debited.
The default percent for Duty/Brokerage is setup by individual supplier in Vendor Information.
To generate automatic postings for Duty/Brokerage, contact Texada Support to set the flag in Support Application Parameters.

FREIGHT ACCRUAL

Enter the liability account to be credited for Freight when equipment is purchased from a Vendor with this currency and a freight expense. The Inventory Account from Sales Product Class or Rental Product Class is debited.
The default percent to be charged for Freight is setup by individual supplier in Vendor Information.
To generate automatic postings for Freight costs, contact Texada Support to set the flag in Support Application Parameters.

CASH OVER / SHORT

Enter the G/L Expense account to be debited or credited for any cash discrepancy generated from the on-screen Cash-out process in Daily Close 1.
The balancing debit or credit will be posted to the clearing account for the method of payment as determined in Method Of Payment Codes.
The Cash Over/Short option can be activated in the Company Daily Close Parameters.

CUSTOMERS' DEPOSITS HELD

Enter the Liability account to be credited when a customer deposit is taken on a Contract, Reservation, Sales Order or Work Order, or select the G/L account from the window searching by account number or account description.

DAMAGE WAIVER BY TAX CODE

Skip this field, if your firm does not post the Damage Waiver Revenue by Tax Code. The standard G/L Revenue Account for Damage Waiver above will be used.

If your firm does wish to post the Damage Waiver Revenue by Tax Code enter the tax codes in the window as follows:
Note: This would only apply when tracking the Damage Waiver Revenue according to the State or Province.

TAX CODE

Enter the tax code, or select it from the drop-down list. The tax code description displays.
If a new tax code is required it can be added in Tax Codes.

REV ACCT

Enter the Damage Waiver Revenue account which corresponds to this tax code, or select it from the window, searching by account number or account description. The account description displays.
If your firm operates in several provinces or states, separate G/L Damage Waiver Revenue Accounts may be required for each one.

ADDITIONAL ACCOUNTS

Bad Debts Accounts:

BAD DEBTS EXPENSE

Enter the Expense account to be debited with any net bad debt write-offs, or select it from the window, searching by account number or account description.

BAD DEBTS RECOVERY

Enter the Expense account to be credited with any bad debts that are recovered, or select it from the window, searching by account number or account description.
e.g. customer pays after their account has been written off. (The Bad Debt account can be used.)

BAD DEBT COLLECTION EXP

Enter the Expense account to be debited with any collection fees charged to your firm for collecting a bad debt, or select it from the window, searching by account number or account description. This can be the same account as the Bad Debt account above.

BAD DEBTS LEGAL EXPENSE

Enter the Expense account to be debited with any legal fees charged to your firm for collecting a bad debt, or select it from the window, searching by account number or account description. This can be the same account as the Bad Debt account above.

GST PAID ON PURCHASES

For Canada only, enter the asset account used for GST PAID ON PURCHASES, or select it from the window, searching by account number or account description.
This should NOT be the same account as GST charged to your customers, i.e. TAX 1). This account tracks the GST charged to your firm, if a collection agency collects a bad debt.

For other countries, use your Suspense account.

LOCK BOX VARIANCE EXPENSE

If your firm utilizes the Lockbox method of receiving customer payments as explained in Import Lockbox Payments, enter an expense account to allow for any amount to be discounted, caused by a variance in the bank input process, or select the expense account from the window.
The variance allowance can be setup per customer in Customer Lockbox Variance.

Job Cost Accounts:

JOB COST PAYROLL EXPENSE

If your firm utilizes the Job costing feature and uses Time Sheets, this account is used in posting Post Time Clock/Cost Entries.

JOB COST PAYROLL ACCRUAL

If your firm utilizes the Job costing feature and uses Time Sheets, this account is used in posting Post Time Clock/Cost Entries.

TRADE DISCOUNTS ACCOUNT

Trade discounts apply only to a few firms.
If your firm does not give trade discounts, enter the same account as was assigned to DISCOUNT GIVEN ON A/R above.

For firms using trade discounts, enter a separate G/L account to track the activity or select the account from the window.
Note: Since this account is a clearing account, the net activity should always be zero. The trade discount amount is posted back to the original revenue and tax accounts through this account.

For more information on this discount feature refer to the Trade Discounts.

MANUFACTURING ROUNDING

When sales parts are used in the manufacturing process outlined in Manufacturing Receiving the costs of the parts are rounded to 2 decimal places.
The cost adjustments of parts used are posted through Daily Close 3 and this default account is used to post any rounding differences.

Asset Finance Accounts:

The following 3 G/L accounts are only used by the Company currency and apply to the Asset Financing module.

FINANCE BANK

Enter a Bank account to become the default Bank Account G/L when a new schedule is setup in the Asset Financing

FINANCE LOAN LIABILITY

Enter the Loan Liability account that will be Debited for the monthly payment amount that is posted manually from Asset Finance Report and Posting or automatically through Automatic Reporting for job AFHDR09.
This account is also Credited by the startup one-time posting of the total Interest amount for the schedule as explained in Asset Financing.

FINANCE INTEREST LIABILITY

Enter the Interest Liability account that will be Credited for the monthly interest amount that is posted manually from Asset Finance Report and Posting or automatically through Automatic Reporting for job AFHDR09.
This account is also Debited by the startup one-time term posting of the total Interest amount for the schedule as explained in Asset Financing.

WORK ORDER WORK IN PROGRESS

This field is only active if the processing has been activated in Custom Function Parameters.

REWARDS PROCESSING

This window only applies to when the Rewards Program processing is activated in Custom Function Parameters, and can be used to setup the following G/L posting accounts:

REWARD EXPENSE

Enter the Expense G/L account to be debited for Usable Rewards Dollars earned when the customer pays an invoice on time without using Reward Dollars.

REWARD REVENUE DEFERRED

This account tracks the potential liability of customers claiming Reward Dollars.
Enter the Liability G/L account to be credited for Usable Rewards Dollars earned when the customer pays an invoice on time without using Reward Dollars, and to be debited when Usable Rewards Dollars are used to pay transactions On Account and also to be debited when Usable Reward Dollars expire or are forfeited.

REWARD FORFEIT

Enter the Revenue to be credited when Usable Rewards Dollars expire or are forfeited.

METHOD OF PAYMENT

This field is display only and shows the payment method that has automatically been defined by the system for this currency, as RWD-X where X is the currency code.
This is the payment method that must be selected in Customer Payments and in Counter Payments to apply any Usable Rewards Dollars to pay transactions On Account.

This payment method code is reserved and cannot be used in the Method Of Payment table.

Posting actions are:

Earn: = DR Reward Expense and CR Reward Revenue Deferred
Use: = DR Reward Revenue Deferred and CR A/R Control Account
Expire: = DR Reward Revenue Deferred and CR Reward Forfeit

Note: All transactions post to Head Office division through Daily Close 3 regardless of the document or payment division.

Refer to Reward Program Maintenance for more information on configuration and use of this feature.

TAX CODE 1

This field only applies if the "Standard" tax process is utilized.
Enter the tax code for TAX 1, or select it from the drop-down list. In Canada, Tax 1 is generally GST. In the United States, Tax 1 is State Sales Tax SST.

TAX CODE 2

This field only applies if the "Standard" tax process is utilized.
Enter the tax code for TAX 2, or press <F4> and select it from the drop-down list. In Canada, Tax 2 is generally PST. In the U.S., Tax 2 is generally County, Municipal or Local tax.

Finished?

Click ACCEPT to proceed or CANCEL to exit.

ACTIONS:
Additional actions provided by buttons on the Default Accounts screen include:

• Delete a Default Account table:
  Click on the DELETE button, then select the Currency code for the Default Account table from the drop-down list that is to be deleted.
  Confirmation is required.