General Ledger Adjusment Reason Codes (aka Reason Codes) are codes that a client defines in Acclamare which associates a GL Account to a named code. The purpose for Reason Codes are two-fold.
- Assign code names that are more easily understood by users than Chart of Account numbers/descriptions.
- Limit/restrict the GL accounts that can be posted to by users.
Administrators will typically define several of these when Acclamare is initially set up. Then add new codes as an as-needed basis. Reason Codes are required when inputting an entry into any of the transaction areas listed below. Depending upon area you are in, the Reason Code dropdown list will show only the Reason Codes applicable to that area
- Accounts Receivable Adjustment
- Manual AR Document Entry
- Accounts Payable Adjustment
- Inventory Quantity Adjustment
Reason Codes are set up under File Maintenance > General Ledger > General Ledger Adustment Reason Codes. The screenshot shown below indicates where the user defines the Adjustment Type and the Expense Account that will be impacted. In the Description field it is recommended that you include a reference to the expense account number so that the user can see the account number wehn selecting a Reason Code from a transaction area dropdown list.
NOTE: The Expense Account assigned to any Reason Code should rarely be a Balance Sheet account, and NEVER be the Balance Sheet account for Accounts Payable, Accounts Receivable, Inventory, Inventory Clearing/Unmatched, or AP Clearing/Unmatched. As an example as why not to set a Reason Code to a key Balance Sheet account, consider the following.
An AR Invoice exists with a balance of $20 and you desire to adjust it down by $20. Let's assume that you have unadvisably created a Reason Code that points the Expense Account to #1100-0 Accounts Receivable, and you chose that Reason Code during the Accounts Receivable Adjustment entry.
The posting process will automatically credit Accounts Receivable (ie #1100-0) and will debit the account associated with the Reason Code, which in this example is also #1100-0. The net impact upon account #1100-0 will be $0, yet your AP Aging Report will have decreased by $20. Thus you have created an scenario whereby GL Acccounts Receivable will no longer match out to AR Aging Report.
