In this video you’ll learn how to setup accounting reasons. Accounting reasons are used to capture the specific reason why an adjustment that will affect the general ledger is being recorded. You will create a customized list of accounting reasons that includes the following:

  • Stock Adjustment Reasons - Stock adjustment reasons are used to explain why a stock adjustment is being done.  Stock Adjustments are associated to specific General Ledger accounts so you can dictate where a stock adjustment will get posted based on the reason for the adjustment.  You may also default the posting to the COGS account for the item.
  • Credit Memo Reasons - Determines which GL account is impacted.
  • Discount Reasons -  Anytime you discount an item in any type of order or POS transaction you must select a discount reason. The application tracks and reports all discounts by reason and employee.
  • Statement Charge Reasons - Statement charge reasons are added to statement charge, and they determine which GL account the statement charge is posted to.

Create a new stock adjustment reason

  1. Open the Stock Adjustment Reason tab on the Administration screen (Administration > Inventory > General Setup > Stock Adjustment Reasons).
  2. Click Add. The Stock Adjustment Reason screen appears.
  3. Reason - Enter a description of the reason. Remember, this is how users will select the stock adjustment reason.
  4. Select an accounting option.
    • Use the Items Cost of Goods Sold Account - Select this option if you want all stock adjustments with this reason to post to the default COGS account setup at the Product Line level.
    • GL Account (Expense) - Select a specific GL account if you want all stock adjustments with this reason to post to a specific GL account.
  5. Click OK when complete to save the stock adjustment reason.

Merging duplicate inventory items automatically creates a new stock adjustment reason

When you merging duplicate inventory items, the system automatically creates a new stock adjustment reason. 

Create a new credit memo reason

  1. Open the CR Memo Reason tab on the Accounting Setup screen (Administration > Accounting > General Setup > Credit Memo Reasons).
  2. Click Add.
  3. Enter a Description of the credit memo.
  4. Select a GL Account, or click Add Account to create a new GL account.
  5. Click OK when complete.
    • Now that the credit memo reason has been created, you can use the New Credit Memo screen to create a credit memo using the new credit memo reason.

Create a new discount reason

  1. Go to Administration > Sales > General Setup > Discount Reasons.
  2. Click Add.
  3. Type in the Discount name.
  4. Select the Discount GL Account from the pull down menu.
  5. Click OK when complete to save the new discount reason.

Create a new statement charge reason

  1. Open the Statement Charges tab on the Accounting Setup screen (Administration > Accounting > General Setup).
  2. Click Add. The New Statement Charge Reason screen appears.
  3. Description - Enter a description of the reason - for example,  NSF Fee, Statement Fee or Bounced Check.
    • The description prints on the customer statement.
  4. GL Revenue Account - Select the GL account that is credited when the statement charge is assessed.
    • Generally, this is a revenue account, but you can select any account
    • Add Account - Click Add Account to create a new account.
  5. Click OK when complete.  The Reason is now available when adding new Statement Charges.
    • Once you have created a statement charge reason.