Setting Up Distribution Codes

Distribution codes simplify the process of generating accounting entries by defining valid combinations of chart of account field values.

Fastpath: 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 Admin Menu, Distribution Code.

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 Flat File 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 control how the system writes off debt associated with the distribution code. Refer to The Ramifications of Write Offs in the General Ledger for an explanation of how these fields are used at write-off time.

  • Define the Division and Contract Type of the contract to which bad debt associated with this distribution code should be transferred at write-off time. Note: Only contract types with a special role of Write Off may be selected.
  • When the system transfers debt to the write-off contract defined above, the distribution code defined on this Division / Contract 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.

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.
  • Enter the Statistics Code that should be passed to the general ledger during the GL interface for this GL Account.

  • Select the Validate GL Account check box to indicate that you want to validate the GL account statically. For more information about static GL account validation, refer to Static GL Account Validation.

  • If you have configured your installation options to indicate that fund accounting is practiced, 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 - Indicates the type of characteristic.
    • Characteristic Value - Indicates the value of the characteristic.
Note: 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.