Accounting Code

The accounting code for an item is specified on the Description screen of the Part Master Maintenance conversation.  It is one of the few fields that is required for every item.

The Inventory Accounting application uses the accounting code to determine which general ledger inventory account to use in creating and posting journal entries related to each item.  Each accounting code corresponds to exactly one inventory account in the general ledger.  Note that many parts might have the same accounting characteristics, thus the activity for many parts can be posted to a single inventory account.  Inventory Accounting values work in process and automatically creates journal entries for each manufacturing order and inventory update transaction.  If MAC-PAC's General Ledger application is installed, the journal entries can be posted directly from Inventory Accounting.

The account codes are linked to general ledger account/centers in Reference File category 452.  The accounting codes themselves are defined in Reference File category 433. 

Information about how to set up your account numbers correctly is given in the discussion of category 452 within the Reference File categories manual and in the Inventory Accounting User Manual.  If you are using Inventory Accounting, you should review this information carefully before defining accounting codes and assigning them to parts.

If you are not using Inventory Accounting, you are still required to define accounting codes but need not be as concerned about setting them up correctly.  The only use for accounting codes outside Inventory Accounting is within the Inventory Control application.  Inventory Control can report ABC classification information by accounting code.