Difference between revisions of "What is a sales or purchase centre?"

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== More Information ==
 
== More Information ==
Invoices and Credit Notes from the Sales and Purchase Ledgers cannot be posted directly to nominal codes in Platinum - they have to go through an intermediate stage of analysis which is where the Sales and Purchase Centres come in.  
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Invoices and Credit Notes from both the {{SL}} and {{PL}} cannot be posted directly to nominal codes in Platinum - they have to go through an intermediate stage of analysis which is where the Sales and Purchase Centres come in.
  
Sales and Purchase Centres are designed to allow you to analyse invoices and credit notes in more detail than you might want on your management accounts. Management accounts are derived from [[What is a Nominal Code?|nominal codes]].  
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There are a couple of good reasons to have this intermediate stage of analysis.
  
{{Example|text=You might want to analyse motor vehicle costs for each vehicle. On your management accounts, it gets unwieldy to see the costs against every vehicle, and a summary nominal code is all that is really needed. You can have purchase centres for each vehicle and analyse the costs in the Purchase Ledger, but have all these Purchase Centres updating one nominal code.}}
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Firstly, Sales and Purchase Centres are designed to allow you to analyse invoices and credit notes in more detail than you might want on your management accounts. Management accounts are derived from [[What is a nominal code?|nominal codes]].
  
In many circumstances, you will find that you will need one Sales or Purchase Centre per Nominal Code, since the same level of detail is sufficient for most people.
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{{Example|text=You might want to analyse unit costs for each unit. On your management accounts, it gets unwieldy to see the costs against every unit, and a summary nominal code is all that is really needed. You can have purchase centres for each unit and analyse the costs in the {{PL}}, but have all these Purchase Centres updating one nominal code.}}
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Secondly, if you are running a multi-site operation, your operational staff only need to be aware of the Sales and Purchase centres for analysis. The site modifier will take care of the appropriate nominal code.
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In many circumstances with a single site, you will find that you will need a one-to-one relationship of Sales or Purchase Centres to Nominal Codes, since the same level of detail is often required at both levels. In a multi-site operation, you will have a one-to-many relationship, where one Sales or Purchase Centre will update more than one Nominal Code because of the site modifier.
  
 
== See also ==
 
== See also ==
* [[How do I Find a Cost Centre?]]  
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* [[How do I find a centre?]]
* [[How do I Create a Sales or Purchase Centre?]]
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* [[How do I create a sales or purchase centre?]]
* [[How do I Print a List of Purchase Centres?]]
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* [[How do I print a list of purchase centres?]]
* [[How do I Print a List of Sales Centres?]]
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* [[How do I print a list of sales centres?]]
* [[Posting Purchase Invoices]]
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* [[Posting purchase invoices]]
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{{KB_Tags|cost centre, purchase centre, centre, search, sales centre, nominal code, nominal}}
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{{FAQ}}{{KB_NL}}{{KB_PL}}{{KB_SL}}{{ZN_Accounts}}
  
{{KB_Tags|Cost Centre, Purchase Centre, Centre, Search, Sales Centre}}
 
{{KB_PL}}{{KB_SL}}{{ZN_Accounts}}{{FAQ}}
 
 
{{KB_Ref|GR52}}
 
{{KB_Ref|GR52}}

Latest revision as of 11:29, 17 April 2019

Summary

This article explains the purpose of Sales and Purchase centres.

More Information

Invoices and Credit Notes from both the Sales Ledger and Purchase Ledger cannot be posted directly to nominal codes in Platinum - they have to go through an intermediate stage of analysis which is where the Sales and Purchase Centres come in.

There are a couple of good reasons to have this intermediate stage of analysis.

Firstly, Sales and Purchase Centres are designed to allow you to analyse invoices and credit notes in more detail than you might want on your management accounts. Management accounts are derived from nominal codes.

You might want to analyse unit costs for each unit. On your management accounts, it gets unwieldy to see the costs against every unit, and a summary nominal code is all that is really needed. You can have purchase centres for each unit and analyse the costs in the Purchase Ledger, but have all these Purchase Centres updating one nominal code.

Secondly, if you are running a multi-site operation, your operational staff only need to be aware of the Sales and Purchase centres for analysis. The site modifier will take care of the appropriate nominal code.

In many circumstances with a single site, you will find that you will need a one-to-one relationship of Sales or Purchase Centres to Nominal Codes, since the same level of detail is often required at both levels. In a multi-site operation, you will have a one-to-many relationship, where one Sales or Purchase Centre will update more than one Nominal Code because of the site modifier.

See also


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Keywords AND Misspellings
cost centre, purchase centre, centre, search, sales centre, nominal code, nominal
Tags

GR52