Setting Up GL Correction Control
Financial reporting standards in some countries—particularly in Eastern Europe—require that correction transactions are represented by a negative debit and negative credit instead of the standard processing.
In addition, the GL summarization that takes place during invoice post must also account for the differences between negative and positive lines for the same entity, account, sub-account, cost center, and project. These differences create separate GL transactions.
If you need to set up your accounting system to meet these requirements, you must define the proper settings in GL Correction Control (25.13.24). Using these settings, you can:
• Produce correction transactions for invoices generated as a result of sales orders for a total negative amount, such as credit notes. Also generate correction transactions for GL distribution lines that reduce a customer’s accounts receivable liability, such as discounts.
Note: If you enable sales order/invoice correction accounting settings, you must also define the corresponding daybook sets for recording these corrections. The daybook set programs validate daybooks based on whether correction is enabled.
• Configure invoice post to consolidate positive and negative GL postings to the same entity, account, sub-account, cost center, and project to produce a single GL posting instead of two.
• Configure specific areas of inventory control and work orders to generate correction transactions by selecting specific transaction types.
• Enable or disable the creation of daybooks for correction transactions for either AP or AR.