Assigning Profit/Cost Center to GL Account

[Former Member]

Hi,

We are trying to use Profit Centers (Cost Accounting) to track direct and indirect costs and create profit/loss for specific departments.

I would like to create different GL accounts for the Revenues and Cost of Goods to post to. We would like to select the Profit Center at the Sales order level (per Line Item) and have it flow though both the cost and revenue sides of Target documents (Invoice, Purchase order...) and into the GL.

When I created a new profit center it automatically assigned it to the main Sales Revenue account. How would I change this so it posts to ex: 41500000-01-001-01 - Sales Revenues - Department One ?

Thank You

Henry

[Former Member · Accepted solution]

Suda,

Thank you for your reply.

How do you change the GL number on a Profit Center?

Thank You

Henry

[former_member583013 · Accepted solution]

There is no hard association of a GL Number to a profit center during the transaction. A Profit Center can be associated with a GL Account through the Chart of Accounts window (mostly used in Expense Accounts) where by when you post a AP Invoice to a expense account then based on the distribution rules set to the Profit Center, reports could be generated for a particular Profit Center.

Suda

[Former Member · Accepted solution]

hi

You can assign Distribution Rule for Revenue and Expenditure accounts. You can also assign Distribution rule in sales Order by enabling the Particular dimension in your Form Settings.

[former_member583013]

Henry,

With what I understand of your question, I can only tell you that Profit Center do have a direct G/L account assigned to them where the G/L entries get posted when processing an A/R transaction.

Based on the type of G/L Management you have set in your company would JE posting happen. There are at the system level

System Init.. > General Settings > Inventory Tab...Manage Inventory G/L by setting

Is this by Item Group / Warehouse.....this setting can be changed at the Item level if required which is finally going to decide how your JE posts when you process a Delivery and AR Invoice

Please let me know

Suda