About Unit Code Reporting

These are the basic assumptions of unit code reporting throughout the system.

Account Structure

The account structure in the system is:

• Account - Main account
• Unit Code 1 - Department
• Unit Code 2 - Product Code
• Unit Code 3 - User Defined
• Unit Code 4 - User Defined

Account is part of the account template, unit codes are not. Any unit code can be tied to a main account, provided the Chart of Accounts setup allows that chart record access to that unit code.

Chart of Accounts

On the Chart of Accounts, you can set each unit code with one of the following three attributes:

• Not Accessible - The Reporting Unit field is not accessible for this account in the system. If this option is selected, the unit code will not be posted. The system also disables the corresponding Unit Code tab on the form.
• Accessible - The Reporting Unit field is accessible for this account everywhere in the system. If this option is selected, you may enter that unit code for the associated account, but it is not mandatory.
• Required - The Reporting Unit field is required for this account everywhere in the system. If this option is selected, you are required to enter the unit code for the associated account. An error occurs if you leave the unit code blank when one is required. If no unit code is entered, posting will fail.

Inventory Transactions

For transactions involving inventory distribution accounts, the system pulls unit codes from Item Stockroom Locations.

Job Transactions

WIP transactions pull Acct, Unit Code 1, Unit Code 3, and Unit Code 4 from the Product Codes - WIP tab. Unit Code 2 comes from the Product Codes - General tab.

EXAMPLE: For example, a job is created for Item A. Item B is the material issued to that job. Unit Codes 1, 3 and 4 are defined on the Product Codes - WIP tab. For a job material issue, the following accounts and unit codes are used.

Labor Posting

In standard costing, variance transactions use Unit Code 2 from the Product Codes - General tab. For labor rate variance, it also uses Unit Code 1 from the Departments form. Other unit codes are pulled from the Product Codes - Variance Tab.

CO Shipping Transactions

Customer order unit codes can be handled in one of two ways. On the Customers form there is an End User Type field. End User Type accounts can then be set up on the End User Types form. The accounts defined here are Sales, Sales Discount, Accounts Receivable, Cost of Goods Sold Material, Cost of Goods Sold Labor, Cost of Goods Sold Fixed Overhead, Cost of Goods Sold Variable Overhead, and Cost of Goods Sold Outside. If End User Type is defined on the Customers form, that type is pulled into the order and the default values for Acct, Unit Code 1, Unit Code 2, Unit Code 3, and Unit Code 4 are used from the End User Types form. If there is no Unit Code 2 on the End User Type form, it is pulled from the Product Codes - General tab.

If End User Type is not used, the system pulls the Acct, Unit Code 1, Unit Code 2, Unit Code 3, and Unit Code 4 from the Sales/COGS tab on the Distribution Accounts form for all accounts listed above except Accounts Receivable. If there is no Unit Code 2 on the Sales/COGS tab of the Distribution Accounts form, it is pulled from the Product Codes - General tab. Accounts Receivable is pulled from the Accounts Receivable Parameters form and uses all Acct, and all Unit Codes.

NOTE: See Where Unit Codes Come From for a table illustrating how unit codes are applied by activity performed.

Related Topics

General Ledger Overview

Account/Unit Code Removal Utility

Copy Unit Codes to Accounts Utility

Unit Code (1-4)

Unit Code Replacement Utility