INTRODUCTION

This article describes how the distribution accounts are used in the Field Service series in Microsoft Dynamics GP.

More Information

Service Call Management in Microsoft Dynamics GP

Note The account sources are listed in the order of preference. If an account is not in the first account source that is listed, the next account source listed is used.

When the quantity that is sold on the C line or on the I line of a service call is updated, an inventory decrease adjustment is created. Then, this inventory decrease adjustment is posted. This inventory decrease adjustment updates the following general ledger accounts.

Account

Debit

Credit

Account Source

Inventory

Yes

Inventory account from the Item Account Maintenance window
Inventory Control account from the Posting Accounts Setup window

Inventory Offset

Yes

Drop Ship Items account from the Item Account Maintenance window
Drop Ship Items account from the Posting Accounts Setup window
Inventory account from the Item Account Maintenance window
Inventory account from the Posting Accounts Setup window


When this service call is billed, an invoice is created in Sales Order Processing in Microsoft Dynamics GP. Additionally, the line item is flagged as a drop ship item on the invoice. Because the line item is flagged as a drop ship item, no additional adjustments are made in the inventory when you post the invoice. When you enter the parts line item in the Service Call Entry - Parts window, the inventory is decreased. Then, the inventory is processed. When you post the invoice, the following general ledger accounts are updated.

Account

Debit

Credit

Account Source

Sales

Yes

Parts Sales account from the Service Type Account window
Sales account from the Customer Account Maintenance window or from the Item Account Maintenance window
Sales account from the Posting Account Setup window

Accounts Receivable

Yes

Accounts Receivable account from the Customer Account Maintenance window
Accounts Receivable account from the Posting Account Setup window

Drop Ship

Yes

Drop Ship Items account from the Item Account Maintenance window
Drop Ship Items account from the Posting Account Setup window
Inventory account from the Item Account Maintenance window
Inventory Control account from the Posting Account Setup window

Cost of Goods Sold

Yes

Part Cost of Goods Sold account from the Service Type Account window
Cost of Goods Sold account from the Customer Account Maintenance window or from the Item Account Maintenance window
Cost of Goods Sold account from the Posting Accounts Setup window


Note You can specify whether you want the posting accounts that are selected for the customer or for the item to appear as the default entries when you enter a transaction. To do this, enable the Customer option or the Item option under Posting Accounts From in the Sales Order Processing Setup window.

When the quantity that is sold on the R line of a service call is updated, an inventory increase adjustment is created. Then, this inventory increase adjustment is posted. This inventory increase adjustment updates the following general ledger accounts.

Account

Debit

Credit

Account Source

Inventory

Yes

Inventory account from the Item Account Maintenance window
Inventory Control account from the Posting Accounts Setup window

Cost of Goods Sold

Yes

Part Cost of Goods Sold account from Service Type Account
Cost of Goods Sold account from the Item Account Maintenance window
Cost of Goods Sold account from the Posting Accounts Setup window


When the service call is billed, a credit is created in Sales Order Processing. Additionally, the line item is flagged as a drop ship item on the invoice. Because the line item is flagged as a drop ship item, no additional adjustments are made in the inventory when you post the credit. When you enter the parts line item in the Service Call Entry - Parts window, the inventory is increased. Then, the inventory is processed. When you post the credit, the following general ledger accounts are updated.

Account

Debit

Credit

Account Source

Sales

Yes

Part Sales account from the Service Type Account window
Sales account from the Item Account Maintenance window or from the Customer Account Maintenance window
Sales account from the Posting Accounts Setup window

Accounts Receivable

Yes

Accounts Receivable account from the Customer Account Maintenance window
Accounts Receivable account from the Posting Accounts Setup window


Note You can specify whether you want the posting accounts that are selected for the customer or for the item to appear as the default entries when you enter a transaction. To do this, enable the Customer option or the Item option under Posting Accounts From in the Sales Order Processing Setup window.

Contract Administration in Microsoft Dynamics GP

The following information is used to determine which posting accounts are updated when you run the contract billing process:

  • The value in the Bill Day Frequency box in the Contract Entry/Update window

  • The value in the Discount Account box in the Contract Type Maintenance window

  • Any difference between the values in the Bill To Customer box and in the Customer ID box in the Contract Entry/Update window

  • Whether the Invoice Detail check box is selected in the Contract Entry/Update window

The following accounts are used when you run the contract billing process if the contract is billed monthly in detail and if the contract does not use discounts.

Account

Debit

Credit

Account Source

Accounts Receivable

Yes

Accounts Receivable account from the Customer Account Maintenance window
Accounts Receivable account from the Posting Accounts Setup window

Sales

Yes

Sales account from the Contract Type Maintenance window

Commission Expense

Yes

Commission Expense account from the Posting Accounts Setup window

Commission Payable

Yes

Commission Payable account from the Posting Accounts Setup window

Taxes

Yes

Account from the Tax Detail Maintenance window


The following accounts are used when you run the contract billing process if the contract is billed monthly in summary and if the contract does not use discounts.

Account

Debit

Credit

Account Source

Accounts Receivable

Yes

Accounts Receivable account from the Customer Account Maintenance window
Accounts Receivable account from the Posting Accounts Setup window

Sales

Yes

Sales account from the Contract Type Maintenance window

Commission Expense

Yes

Commission Expense account from the Posting Accounts Setup window

Commission Payable

Yes

Commission Payable account from the Posting Accounts Setup window

Taxes

Yes

Account from the Tax Detail Maintenance window


The following accounts are used when you run the contract billing process if the contract is billed monthly in detail and if the contract uses discounts.

Account

Debit

Credit

Account Source

Accounts Receivable

Yes

Accounts Receivable account from the Customer Account Maintenance window
Accounts Receivable account from the Posting Accounts Setup window

Sales

Yes

Sales account from the Contract Type Maintenance window

Markdown

Yes

Discount account from the Contract Type Maintenance window

Commission Expense

Yes

Commission Expense account from the Posting Accounts Setup window

Commission Payable

Yes

Commission Payable account from the Posting Accounts Setup window

Taxes

Yes

Account from the Tax Detail Maintenance window


The following accounts are used when you run the contract billing process if the contract is billed monthly in summary and if the contract uses discounts.

Account

Debit

Credit

Account Source

Accounts Receivable

Yes

Accounts Receivable account from the Customer Account Maintenance window
Accounts Receivable account from the Posting Accounts Setup window

Sales

Yes

Sales account from the Contract Type Maintenance window

Markdown

Yes

Discount account from the Contract Type Maintenance window

Commission Expense

Yes

Commission Expense account from the Posting Accounts Setup window

Commission Payable

Yes

Commission Payable account from the Posting Accounts Setup window

Taxes

Yes

Account from the Tax Detail Maintenance window


The following accounts are used when you run the contract billing process if the contract is billed bi-monthly, quarterly, semi-annually, or annually in detail and if the contract does not use discounts.

Account

Debit

Credit

Account Source

Accounts Receivable

Yes

Accounts Receivable account from the Customer Account Maintenance window
Accounts Receivable account from the Posting Accounts Setup window

Sales

Yes

Accrual/Liability account from the Contract Type Maintenance window

Commission Expense

Yes

Commission Expense account from the Posting Accounts Setup window

Commission Payable

Yes

Commission Payable account from the Posting Accounts Setup window

Taxes

Yes

Account from the Tax Detail Maintenance window


The following accounts are used when you run the contract billing process if the contract is billed bi-monthly, quarterly, semi-annually, or annually in summary and if the contract does not use discounts.

Account

Debit

Credit

Account Source

Accounts Receivable

Yes

Accounts Receivable account from the Customer Account Maintenance window
Accounts Receivable account from the Posting Accounts Setup window

Sales

Yes

Accrual/Liability account from the Contract Type Maintenance window

Commission Expense

Yes

Commission Expense account from the Posting Accounts Setup window

Commission Payable

Yes

Commission Payable account from the Posting Accounts Setup window

Taxes

Yes

Account from the Tax Detail Maintenance window


The following accounts are used when you run the contract billing process if the contract is billed bi-monthly, quarterly, semi-annually, or annually in detail and if the contract uses discounts.

Account

Debit

Credit

Account Source

Accounts Receivable

Yes

Accounts Receivable account from the Customer Account Maintenance window
Accounts Receivable account from the Posting Accounts Setup window

Sales

Yes

Accrual/Liability account from the Contract Type Maintenance window

Markdown

Yes

Discount account from the Contract Type Maintenance window

Commission Expense

Yes

Commission Expense account from the Posting Accounts Setup window

Commission Payable

Yes

Commission Payable account from the Posting Accounts Setup window

Taxes

Yes

Account from the Tax Detail Maintenance window


The following accounts are used when you run the contract billing process if the contract is billed bi-monthly, quarterly, semi-annually, or annually in summary and if the contract uses discounts.

Account

Debit

Credit

Account Source

Accounts Receivable

Yes

Accounts Receivable account from the Customer Account Maintenance window
Accounts Receivable account from the Posting Accounts Setup window

Sales

Yes

Accrual/Liability account from the Contract Type Maintenance window

Markdown

Yes

Discount account from the Contract Type Maintenance window

Commission Expense

Yes

Commission Expense account from the Posting Accounts Setup window

Commission Payable

Yes

Commission Payable account from the Posting Accounts Setup window

Taxes

Yes

Account from the Tax Detail Maintenance window

Revenue recognition report

The following general ledger accounts are updated when you post the revenue recognition report.

Account

Debit

Credit

Account Source

Accrual Liability

Yes

Accrual Liability Account from the Contract Type Maintenance window

Sales

Yes

Sales Account from the Contract Type Maintenance window

Note You cannot post the revenue recognition report for contracts that are billed monthly.

Returns Management in Microsoft Dynamics GP

Return Materials Authorization (RMA) transactions

The following accounts are used for your repair charges on items in RMA transactions.

Account

Debit

Credit

Account Source

Sales

Yes

Repair Sales account from the RMA Type Accounts window
Sales account from the Item Account Maintenance window or from the Customer Account Maintenance window
Sales account from the Posting Accounts Setup window

Accounts Receivable

Yes

Accounts Receivable account from the Customer Account Maintenance window
Accounts Receivable account from the Posting Accounts Setup window

RMA Receiving process

The following accounts are used when the RMA Receiving process creates and then posts an inventory adjustment.

Account

Debit

Credit

Account Source

Inventory

Yes

Inventory account from the Item Account Maintenance window
Inventory account from the Posting Accounts Setup window

Cost of Goods Sold

Yes

Cost of Goods Sold account from the Item Account Maintenance window
Cost of Goods Sold account from the Posting Accounts Setup window


If the return item number is changed during the RMA Receiving process and if the RMA transaction originated from a service call return line, an inventory decrease adjustment is posted for the original item number. Additionally, an increase adjustment is posted for the return item number. In this situation, the following accounts are updated.

Account

Debit

Credit

Account Source

Inventory

Yes

Inventory account from the Service Call Entry - Part Distribution window

Cost of Goods Sold

Yes

Cost of Goods Sold account from the Service Call Entry - Part Distribution window

Inventory

Yes

Inventory account from the Item Account Maintenance window or from the Customer Account Maintenance window
Inventory account from the Posting Accounts Setup window

Inventory Offset

Yes

Cost of Goods Sold account from the Item Account Maintenance window or from the Customer Account Maintenance window
Cost of Goods Sold account from the Posting Accounts Setup window


When the Sales Order Processing (SOP) Return document is created, the line item is flagged as a drop ship item to suppress any adjustments to the inventory. The following accounts are used on the SOP Return document.

Account

Debit

Credit

Account Source

Sales Return

Yes

Sales Return account from the RMA Type Accounts window
Sales Return account from the Item Account Maintenance window or from the Customer Account Maintenance window
Sales Return account from the Posting Accounts Setup window

Accounts Receivable

Yes

Accounts Receivable account from the Customer Maintenance window
Accounts Receivable account from the Posting Accounts Setup window

Inventory scrap process

The following accounts are affected when you run the inventory scrap process.

Account

Debit

Credit

Account Source

Cost of Goods Sold

Yes

Scrap account from the RMA Type Accounts window
Cost of Goods Sold account from the Item Account Maintenance window or from the Customer Account Maintenance window
Cost of Goods Sold account from the Posting Accounts Setup window

Inventory

Yes

Inventory account from the Item Account Maintenance window
Inventory account from the Posting Accounts Setup window

Return to vendor (RTV) entries

If amounts exist in the cost fields on the RTV line, the following accounts are used. The amount recorded is the sum of all the costs for parts, for labor, for expenses, and for travel.

Account

Debit

Credit

Account Source

Purchases

Yes

Cost account from the RTV Type Accounts window
Purchases account from the Vendor Account Maintenance window
Purchases account from the Posting Accounts Setup window

Accounts Payable

Yes

Accounts Payable account from the Vendor Account Maintenance window
Accounts Payable account from the Posting Accounts Setup window


If amounts exist in the Reimbursement section, the following accounts are used. The amount recorded is the sum of all the reimbursement costs for parts, for labor, for expenses, and for travel.

Account

Debit

Credit

Account Source

Purchases

Yes

Reimbursement account from the RTV Type Accounts window
Purchases account from the Vendor Account Maintenance window
Purchases account from the Posting Accounts Setup window

Accounts Payable

Yes

Accounts Payable account from the Vendor Account Maintenance window
Accounts Payable account from the Posting Accounts Setup window

RTV Shipping process

The following accounts are used when the RTV Shipping process creates and then posts an inventory adjustment.

Account

Debit

Credit

Account Source

Inventory

Yes

Inventory account from the Item Account Maintenance window
Inventory account from the Posting Accounts Setup window

Inventory Offset

Yes

Purchases account from Vendor Account Maintenance window
Purchases account from the Posting Accounts Setup window


When you run the RTV Shipping process, a credit voucher is created in Payables Management for all the RTV types in which the inventory is decreased. When the credit voucher is posted, the following accounts are used.

Account

Debit

Credit

Account Source

Purchases

Yes

Purchases account from the Vendor Account Maintenance window
Purchases account from Posting Accounts Setup

Accounts Payable

Yes

Accounts Payable account from the Vendor Account Maintenance window
Accounts Payable account from the Posting Accounts Setup window

RTV Receiving process

The following accounts are used when the RTV Receiving process creates a decrease adjustment.

Account

Debit

Credit

Account Source

Inventory

Yes

Inventory account from the Item Account Maintenance window for item in the Out-Item field
Inventory account from the Posting Accounts Setup window

Cost of Goods Sold

Yes

Cost of Goods Sold account from the Item Account Maintenance window for the item in the Out-Item field
Cost of Goods Sold account from the Posting Accounts Setup window


The following accounts are used when the RTV Receiving process creates an increase adjustment.

Account

Debit

Credit

Account Source

Inventory

Yes

Inventory account from the Item Account Maintenance window for the item in the In-Item field
Inventory account from the Posting Accounts Setup window

Cost of Goods Sold

Yes

Cost of Goods Sold account from the Item Account Maintenance window for the item in the In-Item field
Cost of Goods Sold account from the Posting Accounts Setup window

RTV Closing process

When you run the RTV Closing process, a credit voucher is created in Payable Management for the sum of the reimbursement amounts. When the credit voucher is posted, the following accounts are used.

Account

Debit

Credit

Account Source

Purchases

Yes

Purchases account from the Vendor Account Maintenance window
Purchases account from the Posting Accounts Setup window

Accounts Payable

Yes

Accounts Payable account from the Vendor Account Maintenance window
Accounts Payable account from the Posting Accounts Setup window


When you run the RTV Closing process, an invoice is created in Payables Management for the sum of the cost amounts. When the invoice is posted, the following accounts are used.

Account

Debit

Credit

Account Source

Purchases

Yes

Purchases account from the Vendor Account Maintenance window
Purchases account from the Posting Accounts Setup window

Accounts Payable

Yes

Accounts Payable account from the Vendor Account Maintenance window
Accounts Payable account from the Posting Accounts Setup window

Depot Management in Microsoft Dynamics GP

When the quantity for a part is entered, an inventory adjustment is created. When the inventory adjustment is posted, the following accounts are used.

Account

Debit

Credit

Account Source

WIP Parts

Yes

WIP Inventory account from the Work Order Type Maintenance window

Inventory

Yes

Inventory account from the Item Account Maintenance window
Inventory account from the Posting Accounts Setup window


When a labor entry is posted against a work order, the following accounts are used.

Account

Debit

Credit

Account Source

WIP Labor

Yes

WIP Labor account from the Work Order Type Maintenance window

Labor Consumption

Yes

Item Account Maintenance window for the depot labor item that is assigned to the station ID

Work Order Completion process

If the Expense check box is not selected in the Work Order Type Maintenance window, the Work Order Completion process posts to clear the following WIP accounts.

WIP Material

Account

Debit

Credit

Account Source

Inventory Offset

Yes

Inventory Offset account from the Item Account Maintenance window
Inventory Offset account from the Posting Accounts Setup window

WIP Parts

Yes

WIP Inventory account from the Work Order Type Maintenance window


WIP Labor

Account

Debit

Credit

Account Source

Inventory Offset

Yes

Inventory Offset account from the Item Account Maintenance window
Inventory Offset account from the Posting Accounts Setup window

WIP Parts

Yes

WIP Inventory account from the Work Order Type Maintenance window


When you post a work order in the Work Order Completion window, an inventory adjustment is created to remove the item from the inventory. Additionally, the inventory adjustment adjusts the item back into the inventory.

If the work order type is not flagged to expense the repair cost, the item is adjusted back into the inventory at the repair cost from the item extension. Additionally, the work order cost is added. If the Returned Item Cost field in the Item Extensions window is empty, the appropriate cost is used depending on the valuation method of the item. The appropriate cost may be the standard cost or the current cost. This adjustment does not update the cost fields in the Item Maintenance window.

The following accounts are used when an inventory adjustment removes items from the inventory at cost.

Account

Debit

Credit

Account Source

Inventory Offset

Yes

Inventory Offset account from the Item Account Maintenance window
Inventory Offset account from the Posting Accounts Setup window

Inventory

Yes

Inventory account from the Item Account Maintenance window
Inventory account from the Posting Accounts Setup window


The following accounts are used when an inventory adjustment adjusts items back into the inventory at the repair cost and at the work order cost.

Account

Debit

Credit

Account Source

Inventory

Yes

Inventory account from the Item Account Maintenance window
Inventory account from the Posting Accounts Setup window

Inventory Offset

Yes

Inventory Offset account from the Item Account Maintenance window
Inventory Offset account from the Posting Accounts Setup window


If the work order type is flagged to expense the repair cost, the Work Order Completion process posts a general journal to clear the following WIP accounts.

WIP Material

Account

Debit

Credit

Account Source

Inventory Offset

Yes

Expense Cost account from the Work Order Type Maintenance window

WIP Labor

Yes

WIP Labor account from the Work Order Type Maintenance window


WIP Labor

Account

Debit

Credit

Account Source

Inventory Offset

Yes

Expense Cost account from the Work Order Type Maintenance window

WIP Labor

Yes

WIP Labor account from the Work Order Type Maintenance window


If the Repair Cost field in the Item Extensions window is empty, the appropriate cost is used depending on the valuation method of the item. The appropriate cost may be the standard cost or the current cost. This adjustment does not update the cost fields in the Item Maintenance window.

The following accounts are used when an inventory adjustment removes items from the inventory at cost.

Account

Debit

Credit

Account Source

Inventory Offset

Yes

Inventory Offset account from the Item Account Maintenance window
Inventory Offset account from the Posting Accounts Setup window

Inventory

Yes

Inventory account from the Item Account Maintenance window
Inventory account from the Posting Accounts Setup window


The following accounts are used when an inventory adjustment adjusts items back into the inventory at the repair cost and at the work order cost.

Account

Debit

Credit

Account Source

Inventory

Yes

Inventory account from the Item Account Maintenance window
Inventory account from the Posting Accounts Setup window

Inventory Offset

Yes

Inventory Offset account from the Item Account Maintenance window
Inventory Offset account from the Posting Accounts Setup window


Note For work orders in which the Customer Owned check box is selected, no final inventory adjustments occur. Additionally, the WIP accounts are cleared as expected.

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