Setting Up Account Sets

The Account Sets form is available in Purchase Orders only if you do not use Sage ERP Accpac Inventory Control. If you use Inventory Control, you set up account sets using that program.

Account sets are groups of general ledger accounts to which you post Purchase Orders transactions. By defining more than one account set, you can separate information for different types of items in your general ledger.

You can use as many account sets as you need for your inventory items. For example, you may wish to use separate account sets for different item categories, for items assembled in different areas, or for items obtained from different suppliers.

When you add an account set, you enter a unique code of up to six characters to identify the set, and a description (for example, Assembled Items). Account set codes can contain letters and numbers.

For each account set, you enter account numbers for the following general ledger accounts:

• Payables Clearing. A suspense account to which Purchase Orders posts the "other side" of the accounting entries for items you receive (and for previous receipts you return to suppliers).

Purchase Orders normally generates credit entries to this account for items you receive. Therefore, the account can be thought of as the accrued amount payable for goods received. Purchase Orders debits this account when you enter receipt returns.

As you post the related vendor invoices in Sage ERP Accpac Accounts Payable, offsetting journal entries (debits) related to the items purchased are generated against the Payables Clearing account to clear the balance that is left in this account from posting the inventory receipt.

• Inventory/Expense.The account that you debit when you when you receive items and credit when you enter returns.

For step-by-step instructions on using the Account Sets form to add, edit, or delete an account set record, see Account Sets form.

Return to Setting up Purchase Orders without Inventory Control.