Splitting AP across departments automatically with Control Account Management_Microsoft Dynamics GP 2016 Cookbook-QQ阅读男生玄幻网

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Splitting AP across departments automatically with Control Account Management

Control Account Management in Dynamics GP provides a mechanism to report consolidated payables to divisional expenses for divisional reporting.

Often companies say that they want to see each division reported as if it was a standalone business. Though all divisions may be part of a single legal entity, companies frequently need to evaluate divisional performance by treating each division as a separate business. Frequently, balance sheet accounts such as fixed assets and accounts payable are included to provide a measure of the capital required to run each division.

Control Account Management is designed to deliver the cost and management efficiency of centralized payables, while providing payables reporting at a divisional level.

In Control Account Management, payables are processed centrally. At month-end, a routine is run to allocate open payables from the payables GL account to divisional payable accounts. The allocation is based on a segment of the chart of accounts that corresponds to the company's divisions. An automatically created reversing entry is processed to repopulate central accounts payable and allow the normal payables process to continue. In this recipe, we'll see how to make it all work seamlessly.

Getting ready

Before using Control Account Management, the divisional payable accounts need to be associated with the appropriate general ledger segment. For our example, we'll be using the sample company:

Select Financial on the Navigation pane. Under the Setup heading pick Control Account Management.
In Account Segment, select Segment 3 to represent the departments. Check the Activate Control Account Management at the top. Click Account Types to continue.
Set Account Type to Payables. Set the Batch ID option to AP CONTROL, and set both Batch Comment and Reference to Control Account.
Next to each Segment ID, lookup or enter the corresponding divisional payable account and click Save when finished. For the sample company, use the control accounts shown in the screenshot. Click Save when done:

How to do it...

Once the divisional AP accounts have been mapped, it's time to see how this process works each month:

Select Financial from the Navigation pane on the left. Pick Control Account Management under Transactions.
Click Report to load the payables distribution data. Review the payables distributions at the bottom of the window:
Select the double arrow in the top right of the first scrolling window to see more information.
From this screen, the batch and date information can be changed. Click the Doc Info and Dist Info tabs to see more information about how the payables will be distributed:
Click Generate to create the unposted GL transaction and associated reversing transaction.

How it works...

The month-end routine examines open accounts payable transactions and sums the open amounts by the divisional segment of the purchase. GP then uses this information to calculate the outstanding percentage for each division. From there, a reversing transaction is created to move the accounts payable balance out to the divisional payable accounts.

By providing a GL segment to identify the division and then mapping it to a corresponding payables account, GP provides a best of both worlds solution. This allows centralized AP management with decentralized reporting at month, quarter, and year-end.

The fact that the process resets automatically at the start of the next month makes this a first class solution to an otherwise difficult process.

There's more...

This process is so exciting that many people want to see if it will meet similar needs for multi-company scenarios.

Multi-company

When people see this process for the first time, it often registers as a potential solution to related multi-company issues. This process will work for splitting centralized AP across multiple companies, if the companies are all stored in a single GP company with an identifying GL segment. If the companies are split across multiple GP databases, this process will not work because it can't post across company databases.