6 Set Up the Offset Method for Posting

This chapter contains the topic:

• Section 6.1, "Setting Up the Offset Method for Posting."

6.1 Setting Up the Offset Method for Posting

You designate the type of offsetting entries that the system creates for A/R and A/P offset and discount accounts when you post invoices and vouchers to the general ledger.

Businesses in France are required to maintain a record of all accounting entries in the General Journal (Livre Journal or Journal Général). These entries must be recorded in the General Journal chronologically by the date on which the entries are posted to the General Ledger. The offset methods that you select on the Accounts Receivable Constants screen and the Accounts Payable Constants screen determine how the system prints the General Journal report.

• Setting up the offset method for posting includes the following tasks:

• Setting up the automatic offset method for A/R

• Setting up the automatic offset method for A/P

6.1.1 Example 1: Automatic Offset Method D

To print detailed accounting entries in chronological order and a debits and credits format, set the automatic offset method to the D method. When you use offset method D, the system creates an offset entry for each detail record. (Gross amount, discount amount, and tax accruals are separate offset entries.)

The following example illustrates how the system creates the offsetting entries.

Document Type	Account	Amount
PV (Voucher)	Cost of Goods Sold	1500 (DR)
PV (Voucher)	Cost of Goods Sold	2500 (DR)
PD (Credit Note)	Cost of Goods Sold	1000- (CR)
AE (Automatic Entry)	A/P Trade	4000 (DR) 1000- (CR)

Note:

J.D. Edwards recommends posting transactions in France using offset method D. When you post transactions using offset method D, the system creates offsetting entries in both a debit and credit format with a debit and a credit total rather than a cumulative total.

6.1.2 Example 2: Automatic Offset Method B

If you use offset method B, you can use the Transaction Journal to justify the centralized automatic entries that the system creates when you run the General Journal Report.

Currently, French businesses are not legally required to provide a detailed journal to justify the offset to the bank account for each payment or receipt. If multiple payments and receipts are made on the same bank account, it is acceptable to print one cumulative entry for the bank account.

Note:

When you post using offset method B, the system creates a cumulative automatic entry that does not include debit and credit totals. J.D. Edwards recommends that if offset method B is used to post transactions in France, procedures should be established to control the entry of different types of transactions, such as invoices and debit notes, in the same batch for posting.

The following report shows a journal entry that the system created as an automatic offset using the batch method (B). The system uses the batch number for the document number of the automatic offset.

Figure 6-1 Posting Journal report

Description of "Figure 6-1 Posting Journal report"

To set up the automatic offset method for A/R

Navigation

From Accounts Receivable (G03), enter 29

From Accounts Receivable Setup (G0341), choose Accounts Receivable Constants

On Accounts Receivable Constants

Figure 6-2 Accounts Receivable Constants screen

Description of "Figure 6-2 Accounts Receivable Constants screen"

1. To locate a specific company, complete the following field:

   • Company

2. To specify the offset method, complete the following field:

   • Offset Method

Field

Explanation

Offset Method (D, S, Y, or B)

The method for automatically generating an offset entry when it is posted to the general ledger. Valid codes are: D Create an offset entry for each detail record (gross amount, discount amount, and tax accruals are separate offset entries) S Create a summarized offset for each detail record (gross amount, discount amount and tax accruals are combined into one offset entry) Y Create one offset per document (multiple items) B Create one offset for each batch. The system creates offsets against actual amount and multi-currency ledger types only.

To set up the automatic offset method for A/P

Navigation

From Accounts Payable (G04), enter 29

From Accounts Payable Setup (G0341), choose Accounts Payable Constants

On Accounts Payable Constants

Figure 6-3 Accounts Payable Constants screen

Description of "Figure 6-3 Accounts Payable Constants screen"

1. Complete the following field:

   • Offset Method

See Also:

• Section 12.1, "Printing the General Journal Report,"

• Set Up A/R Constants in the JD Edwards World Accounts Receivable Guide,

• Setting Up Constants for A/P JD Edwards World Accounts Payable Guide.

6.1.3 What You Should Know About

Journal	Explanation
Running the Bank Journal	If you select offset method D, the system creates one single offset for each payment or receipt. When you run the Bank Journal, the journal will list each detailed entry on the bank account in G/L date order.