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The ONLY required default account for the entire tree is the All - Default: REQUIRED account. You must assign a REQUIRED account for each origin/account type combination. However, this account would only be used if you did not have accounts assigned anywhere in the individual Division tree levels.
The hierarchy for each origin/account is illustrated below.
Preparing to set up accounts
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To keep better track of which accounts were assigned, we recommend you periodically print the Signature Payroll and Offset Accounts list. In the Payroll and Overhead Offset Accounts window, click on the printer button that appears at the bottom left of the window. Complete the Report Destination window to print the report. Note:
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If a setup option has been unmarked (for example, Create Expense/Travel Transactions in the TimeTrack Setup Options window) after an account was assigned in this tree that required the setting of that option, the account designation will still print in this report; however, the account cannot be posted to. |
Assigning accounts
You must set up at least a required default account for each origin/account type combination.
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If you use the percentage-of-completion revenue recognition method and post costs to WIP balance sheet accounts rather than expense accounts, the totals will be moved from the balance sheet to the profit-and-loss statement when you close the job. The accounts you set up in this section are updated with those totals when the job closes.
Enter a close jobs account for each editable field that is updated when you complete the job closing process. You must enter accounts for all items in the Close Jobs Account Setup window. Note:
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We recommend that you use the same accounts for closing jobs as you do for revenue recognition. |
- Choose Microsoft Dynamics GP > Tools > Setup > Job Cost > Setup > Account Setup > Revenue Accounts.
- Choose the Close Jobs Accounts button.The progress billings account and WIP accounts you entered in the Revenue Recognition Accounts Setup window automatically appear as defaults in the Close Jobs Account Setup window. You cannot change those accounts.
- In the Contract Earned Closed Jobs field, enter the contract earned closed jobs account. Closed job revenues post to this account as the offset to progress billings accounts.
- Enter expense accounts. The accounts entered will be debit offsets to the accounts entered in the WIP fields in the Revenue Recognition Account Setup window during the close job journal entry.
- Choose Save.
- To print the Closed Jobs Accounts report, choose Print.
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- Choose Microsoft Dynamics GP > Tools > Setup > Job Cost > Account Setup > Invoice Accounts.
Choose a division from the drop-down list.
Note The invoice posting accounts are updated when you post invoices for a job assigned to this division. You must enter accounts for each division.
Choose an invoice posting option and the appropriate general ledger posting accounts based on the invoice posting option you selected:
|Option 1 - Single sales account Option 2 - Sales account for each cost element/code Choose this option if...
...you use the percentage-of-completion or completed contract revenue recognition method.
The single sales account method designates that one general ledger account updates when you post Job Cost invoices to the selected division.When an invoice is posted with this option, the typical general ledger entry debits an accounts receivable account and credits a progress billings account.
Note:...you want to update designated sales posting accounts assigned to each cost element when you post Job Cost invoices to the selected division.
Typically, you use this method to recognize revenue when issuing invoices. This option allows you to compare amounts billed for each cost element. For example, if you want to know the total amount of labor sales, all labor sales amounts are posted to one general ledger account. Each sale from a cost element posts to its specific account.
Note You cannot choose option 2 if you are using the percentage-of-completion revenue recognition method.
Sales account to use when posting Job Cost invoices
Progress Billings
Enter the general ledger account credited when invoices are posted for jobs. This is for percentage-of-completion or closed jobs journal entries. This account is the offset to the progress billings account and should be the same as the account entered in the Division Accounts Setup window (Microsoft Dynamics GP > Tools > Setup > Job Cost > Account Setup > Division Accounts).You can enter one sales account if you recognize revenue when invoices post and you want all sales amounts posted to the same general ledger account.
Cost Element Sales Accounts
Enter a sales account for each cost element. These accounts are updated for each cost element affected by an invoice:- Labor
- Materials/Equip
- User-Defined 2
- Subcontractors
- Travel
- Startup
- Other
- User-Defined 7
- User-Defined 8
- Enter receivables and commission accounts:
- Accounts receivable: The general ledger account debited when you post accounts receivable amounts for Job Cost invoices.
- Retention accounts receivable: The general ledger account debited when you post retention accounts receivable amounts for Job Cost invoices.
- Commissions payable: The general ledger account credited when you post commissions payable amounts for Job Cost invoices. Your setup selections in Receivables Management determine commission amounts.
- Commissions expense: The general ledger account debited when you post commissions expense amounts for Job Cost invoices.
- Mark the Use a sales account for each bill code check box if you want to use a sales account for each bill code at the job level and during job invoice entry. You cannot use this option if there are unposted invoices.
- Choose Save.
- To print the Invoice Accounts report, choose Print.
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