Linking GL Accounts - Material Accounting Tutorial

Overview#

Organisations can choose to run their inventory systems independently of their general ledger or to integrate it.

When inventory is integrated, the relevant General Ledger Accounts are automatically updated when materials are purchased or used. You can link the items to General Ledger Accounts whether you are using the periodic or perpetual system to manage your inventory.

💡These tutorials explain how to integrate the Materials to automatically update the relevant accounts in the general ledger.

How to Link a Material to a General Ledger Account#

1. Click View (button) to view all Materials in the database.
   • Note: Use the filters to refine the list.
2. Double-click to open a Material.
3. Click Edit (button).
4. Navigate to the Detail tab > Accounting heading:
   1. Select a Sales account from General Ledger.
      • Note: The Sales account is credited when you sell the material (the customer account is debited).
   2. Select a Cost of Sales from the General Ledger.
      • Note: The Cost of Sales account is debited when you sell the material (the Inventory Account is credited if you use perpetual accounting).
   3. Select an Inventory account.
      • Note: The Inventory account is debited when you buy the material (the Supplier Account is credited).
5. Click Save (button).

How to Change a Material to the General Ledger Account#

1. Click View (button) to display all the Materials in the database.
   • Note: Use the filters to refine the list.
2. Double-click to open a Material.
3. Click Edit (button).
4. Navigate to Detail (tab) > Accounting heading > Edit the applicable Accounts.
5. Click Save (button).

How to Delete a Linked General Ledger Account#

1. Click View (button) to view all Materials in the database.
   • Note: To refine your list, use the Filters.
2. Double-click to open a Material.
3. Click Edit (button).
4. Navigate to Detail (tab) > Accounting heading > Click in the dropdown box > Use the backspace key to delete the account name.
5. Click Save (button).

How to Link Several Materials to a General Ledger Account#

1. Click View (button) to view all Materials in the database.
   • Note: To refine your list, use the Filters.
2. Multi-select several Materials:
   1. If the items are consecutive: Click the first item, press and hold the Shift key and click the last item.
   2. If the items are not consecutive: Click the first item, press and hold the Ctrl key and click the other items one at a time.
3. Click Actions (button) > Batch Update.
4. On the left, Batch Update appears with a dropdown list:
   1. Select Account - Sales to allocate a sales account to all the selected materials > Select the Sales Account > Click Update (button).
   2. Select Account - Cost of Sales to allocate a cost of sales account to all the selected materials > Select the Cost of Sales Account > Click Update (button).
   3. Select Account - Inventory to allocate an inventory account to all the selected materials > Select the Inventory Account > Click Update (button).