How do I create an internal account?
From Catalyst
(Redirected from How do I Create an Internal Account?)
Contents
Summary
This article explains how to create an internal charging account.
It is important to consider what the account is to be used for as the settings will differ depending on the useage of the account. Common internal accounts are: PDI/Preparation for sale units, Goodwill/Rectification, Sales Department charges, Workshop Consumables etc.
More Information
- Go to " Sales Ledger Customer File Maintenance Add or Edit Customers".
- At "Search on:", type the word 'Internal' and press <F6> to create a new account.
Complete all relevant information on the properties tabs as described below.
Details
- Enter a name for the account e.g. Internal Sales - PDI or Workshop Consumables.
Invoicing
- At "Centre Modifier" select 'Internal' from the drop down menu.
- Click [OK] at the warning displayed on screen.
 | You will need to make sure that your system is configured to "Auto Create New Centres" as well as having the "Account Modifier Offset" enabled. To do this you will need to:
|
- At "V.A.T. rate" select 'VAT Rate 3- Exempt'.
- At "Payment Centre" press <Ctrl+F1>.
- Click [List].
 | It is very important you select the correct code at this point. This will depend on the type of account you are creating and how you set the flags on the [Units] and [Workshop] tabs. If at all unsure please Contact your Platinum dealer or our support team on 0116 230 1500 or by using our website support contact page for advice. |
- For PDI/Preparation accounts you would usually select 'Z944' - Expenses Accruals. You would set the "Unit Sales" and "Log VS Expenses" flags to 'Yes'.
- For Goodwill/Recification accounts you would usually select a Profit & Loss -Overhead or Cost of Sale code. You would leave the "Unit Sales" and "Log VS Expenses" flags set to 'No'.
- For Sales Department and Workshop Consumable accounts you would usually select a Profit & Loss -Overhead or Cost of Sale code e.g. '36501 - W/Shop Dept Internal Costs'. You would leave the "Unit Sales" and "Log VS Expenses" flags set to 'No'.
- Set "Cash Sale" to 'Yes'. Invoices should be marked as paid immediately. The payment method will default to the "Payment Centre" as set in the previous step.
 | If a workshop job is credited the system will not assume it is to be marked as paid. When producing the credit the user can tick the "Payment" on the [Print Summary] screen or you should use Sales Ledger Receipts to mark the credit note as paid in full. The payment method will default to the "Payment Centre" as set in the previous step. |
- Set the "Internal" flag to 'Yes'. Transactions to internal accounts are considered "Outside the Scope" for V.A.T. purposes and will not appear on your VAT100 report.
Groups/Analysis
- Type 'INT' into the "Group" field. This will aid you for reporting purposes.
Stock
You may wish to charge all Stock sold to this Internal Account at cost, although this is not considered to be good business practice.
- Click the [Stock] tab.
- Click into the "Price code" field.
- Press <Shift+F5>.
- If no matching items are found click [OK].
- Click [Add].
- Click the drop down alongside "Account" and select 'Group' to set up pricing for all accounts in the 'INT' account group (see previous section) or leave the field set to this account only.
| It is recommended you apply pricing to a group of accounts rather than individual accounts. When adding a new account simply by assigning it to the same group will ensure the pricing structure is applied. This is a useful feature for Warranty and Internal accounts and makes applying future changes quicker and easier. |
- Enter 'INT' as the "Account: Group".
- Click the drop down alongside "Stock" and select 'All'.
- Leave "Subgroup" set to 'None'.
- At "Description" enter a suitable comment e.g. 'Internal Account at Cost'.
- Choose "Pricing method" - 'Cost price'.
- Then select the relevant method e.g. 'First In First Out'.
| FIFO is the most common method used. |
- You would not usually enter a "Markup" for internal accounts but may wish to do so when charging goods to a sales department. This depends on your business methods.
- Click [Done] and [Accept].
Units
If accessories sold to this account should create expense records against the unit set the "Unit Sales?" flag to 'Yes'.
| This usually only applies to accounts to which PDI and Preparation unit costs are charged are set to be paid off to "Z944- Expense Accruals". |
Workshop
If workshop jobs charged to this account should post an expense record against the unit set the "Log VS expenses?" flag to 'Yes'.
| This usually only applies to accounts to which PDI and Preparation unit costs are charged and are set to be paid off to "Z944- Expense Accruals". |
- Click [Done] and [Accept].
See also
- Creating workshop jobs
- How do I create a workshop warranty job?
- How do I create a warranty account?
- How do I account for internal items?
Thank you for using our Knowledge Base, we value your feedback. Did you find this article useful? 'Yes' or 'No'
Tags
SL01
