Detailed Accounting in CIR

Call Invoice Recording uses standard transaction and accounting procedures as in other modules. This section describes these transactions and the accounts they affect.

Product lines are the basis for managing accounting. Before you record service activity in CAR, you must set up product lines and the codes that direct how transactions impact these product lines.

Several service accounts in Domain/Account Control (36.9.24) support service activity. These accounts are all defined with an account type of Standard.

Service Accounts in Domain/Account Control (36.9.24)

The system uses the service accounts in the control program as defaults when you define a new product line in Product Line Maintenance (1.2.1).

Service Accounts in Product Line Maintenance (1.2.1)

The system updates service accounts for GL transactions created in Call Activity Recording and for expensed material orders (MOs).

For labor consumed in CAR, the system credits this account and debits the WIP account.

The system uses this account and the service labor account to track labor burden for labor consumed in CAR. The system credits this account and debits the WIP account.

The system calculates labor burden using the manufacturing operation formula for burden:

Hours * (Labor Rate * Work Center Burden % * .01 + Work Center Burden Rate)

Note: In service contexts, machines do not affect the formula.

The system uses the Service Expense account to track expenses in CAR. During CAR transaction processing, the system credits the Service Expense account of the charge product line for expense amounts and debits the WIP account.

The system also uses the Service Expense account when you order MOs with a charge code. The system tracks the expense of the ordered items using the Service Expense account of the product line associated with the charge code.

During invoice post, the system debits the Expense Due account for CAR expense amounts and credits the WIP account.

When you return items in CAR, the system credits the Returns account and debits Inventory.

These accounts are used during contract billing based on the revenue type associated with a contract. They are always derived from the product line of the contract type associated with the contract. See Managing Deferred and Accrued Revenue.

The accounts updated during the processing of transactions in CAR may come from any of these product lines:

The first two product lines are collectively referred to as the WIP product line, since that is the only account updated in CAR.

Note: Even though CAR work centers supply information about labor and labor burden, CAR does not use the work center’s department to derive a product line.