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| 12.2.2. Expense Categories | ||
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 | 12.2. Accounting Mappings |  |
Expense Categories are used to identify the General Ledger (G/L) Accounts to be used when processing the following:
Non-Inventory Purchase Order Items
Miscellaneous Vouchers
Miscellaneous Payables Checks
Expense Transactions
For example, when entering a Purchase Order for a non-Inventory Item, you must select an Expense Category—thereby identifying the G/L Accounts the purchasing transaction will be distributed to. To access the master list of Expense Categories, select the "Expense Categories" option. The following screen will appear:
The "Expense Categories" screen displays information on all existing Expense Categories, including Expense Category code and Expense Category description.
To create a new Expense Category, select the NEW button. The following screen will appear:
When creating a new Expense Category, you are presented with the following options:
The Account Numbers assigned to Cost Categories should not all be the Inventory Account. Instead, they should be individual accounts selected specifically for each Cost-tracking purpose. This will increase your visibility into your Inventory Costs and valuation.
Enter the Expense Category name.
Enter a brief description of the Expense Category.
Select to show the Expense Category as active. Not selecting means the Expense Category will be considered inactive. To re-activate an Expense Category, simply select this option.
Identify a General Ledger (G/L) Account to distribute Purchasing Expenses to. This is an Expense Account. It will be debited when transactions using Expense Categories are posted.
Identify a General Ledger (G/L) Account to distribute purchase Price variances to. This is an Asset Account. It will be credited or debited with the value of any variance that may arise when a Voucher is posted for non-Inventory Items.
Identify a General Ledger (G/L) Account to distribute Purchase Order liability clearing to. This is a Liability Account. It will be credited when non-Inventory Items are received, and debited when a Voucher for these Items is posted.
Identify a General Ledger (G/L) Account to distribute Freight Expense to. This is an Expense Account. It will be debited when Line Freight Expenses are posted.
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| 12.2.1. Cost Categories |  | 12.3. Master Information |