Distribution codes simplify the process of generating accounting entries by defining valid combinations of chart of account field values.
Refer to The Source Of GL Accounts On Financial Transactions for more information about the accounting entries associated will bills, payments and adjustments.
To set up distribution codes, open .
Description of Page
Enter a unique Distribution Code and Description for the distribution code.
If this distribution code is a holding account used for payables cash accounting, check the Use For Cash Accounting switch, and enter the actual payable Cash Accounting Code. The system will transfer the holding amount to this distribution code when the cash event occurs. For more information, refer to Payables Cash Accounting.
Define the GL Account Algorithm used by the system when it interfaces financial transactions that reference this distribution code to your general ledger (refer to GLDL - Create General Ledger Download for more information about the download process). The logic embedded in this algorithm constructs the actual GL account number. If you haven't done so already, you must set up this algorithm in the system. To do this:
Create a new algorithm (refer to Setting Up Algorithms).
On this algorithm, reference an Algorithm Type that constructs your general ledger account number. Click here to see the algorithm types available for this plug-in spot.
The Write Off Controls provides the ability to define configuration to write off debt associated with the distribution code by transferring the written off debt to a separate obligation. You would only do this if you wanted to the written off debt to remain visible in the account's balance and you don't want it to remain in the original obligation's balance.
Define the Division and Obligation Type of the obligation to which bad debt associated with this distribution code should be transferred at write-off time. Note: only obligation types with a special role of Write Off may be selected.
When the system transfers debt to the write-off obligation defined above, the distribution code defined on this Division / Obligation Type will be debited unless you turn on the Override Switch. When this switch is turned on, the system overrides the distribution code of the transfer to side of the adjustment with the distribution code associated with the debt being written off. You'd typically turn this switch on for liability distribution codes because you want to debit the original liability account when the debt is written off. Note: if this switch is on the system also overrides the characteristic type / value with the respective value associated with the debt that is being written off.
The write off algorithms provided in the base product (as part of overdue processing) do not transfer the debt to a separate write off obligation.
Use the GL Account Details scroll to define how the system constructs the GL account associated with the distribution code when it interfaces the financial transaction to your general ledger. For each distribution code, enter the following information:
Enter the Effective Date of the following information.
Define whether, on the Effective Date, the following information is Active or Inactive. The system will only use effective-dated information that is Active.
Enter the GL Account that the general ledger uses to process financial transactions tagged with this distribution code.
By default, the installation is configured to practice fund accounting. With this option activated, you can define the Fund associated with this distribution code. If your installation options indicate that fund accounting is not practiced, the field is not visible.
Use the grid to define characteristic values for the Distribution Code. To modify a characteristic, simply move to a field and change its value. The following fields display:
Characteristic Type. Indicate the type of characteristic.
Characteristic Value. Indicate the value of the characteristic.
You can only choose characteristic types defined as permissible on the distribution code record. Refer to Setting Up Characteristic Types & Their Values for more information.
Where Used
Follow this link to open the data dictionary where you can view the tables that reference CI_GL_DIVISION.
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