Distribution Codes

Use the Distribution Codes function to set up and maintain distribution codes, which define general ledger accounts for material and labor charges.

Use the Distribution Codes function to assign default WIP, clearing, COGS, sales, and burden accounts for labor and materials used for job transactions. During setup, you assign each department a distribution code to associate the department with a predefined set of General Ledger accounts. When you post, information is moved directly to the accounts associated with the distribution code you assigned each department. This ensures that the same General Ledger accounts credited during invoice entry will be debited during payment or debit entry.

The distribution code for a transaction may also be changed if the GL account association for the transaction differs from that of the transaction's selected department.

Creating a Distribution Code

  1. Click the New button, on the toolbar, to open a blank distribution codes record.
  2. Enter a new code in the Distribution Code field.
  3. Enter a description of the new code in the Description field.
  4. Select the GL account used for material WIP from the Material WIP field.
  5. Select the GL account used for material burden from the Material Burden field.
  6. Select the GL account used for material burden WIP from the Material Burden WIP field.
  7. Select the GL account used for payroll clearing labor from the PA Clearing Labor field.
  8. Select the GL account used for labor WIP from the Labor WIP field.
  9. Select the GL accounts used for the remaining fields:
    • PA Clearing Labor Burden
    • Labor Burden WIP
    • Material Sales
    • Labor Sales
    • Material COGS
    • Material Burden COGS
    • Labor COGS
    • Labor Burden COGS
    • Job Accrual
    • Accrued Income
  10. Click the Save button, on the toolbar, to save the new distribution code.

Editing a Distribution Code

  1. Select a code to edit from the Distribution Code field.
  2. Edit the fields as necessary.
  3. Click the Save button, on the toolbar, to save any changes made to the distribution code.

Deleting a Distribution Code

  1. Select a code to delete from the Distribution Code field.
  2. Click the Delete button, on the toolbar, to delete the selected distribution code.
  3. Click Yes at the "Are you sure you want to delete selected record(s)?" prompt.