IC04 GL Category Receipt Offset

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TerryL
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Can someone please explain to a non finance person how the RECEIPTS  receipt offset account works.

 

Thanks.

Deleted User
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Here goes: (it's hard explaining what an account does without talking about company)
Every inventory transaction (like most lawson transactions) must debit something and credit something - that's double entry bookkeeping.
So, when you receive goods in IC20, you have increased your inventory so you need some offset to that - generally, a liability account. That account is determined by what's entered in the receipt account in IC04.
Most companies with inventory use purchase orders of some kind so the account set up here is rarely used.
I hope that helps.
yvonne
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In addition to the IC04 consider reviewing the MA01 this will provide the default g/l expense accounts for accrual and write-offs. In the Inventory Control User Guide section Procurement Transaction Interface 'Appendix E' there is detail on the various transactions that may occur. Reports to consider reviewing that will impact the receipt process and the g/l accounts are Match Not Received PO136 (only run in NON Update) and Received Not Invoiced PO135 report (run once a month at monthend in Update Mode).
Andrew Needham
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Hi Terry

The receipts account on the IC04 is actually the offset for misc receipts generated through IC20. I've had a lot of folks think this was the offset account when an Inventory item is received on a PO. This is not the case,  A PO receipt uses the first line of the IC04 table to drive the correct inventory account. The offset is to RNI (Receibed not invoiced) driven from the PO receipts accrual account on MA01.An example of an IC20 misc receipt would be when an item is purchased initially as a Special "x" type item but then the item is establed as an Inventory item and IC20 is used a the process to bring the item into inventory.

Hope this helps