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Segment substitution allows you to determine whether postings for certain general ledger accounts are applied to default accounts, or to substituted accounts based on warehouse or division. A substituted account is an account you define by selecting an account segment and an associated subaccount to replace the default account number.

If segment substitution is set up to post by warehouse, default general ledger accounts defined for certain accounts are replaced by substituted accounts based on the warehouse entered. If segment substitution is set up to post by division, default general ledger accounts defined for certain accounts are replaced by substituted accounts based on the division entered.

Segment substitution occurs in various data entry windows and during the updating of various journals and registers. Segment substitution by warehouse occurs in the following modules:

• Inventory Management

• Purchase Order

• Work Order

• eBusiness Manager

• Return Merchandise Authorization (RMA)

• Sales Order

• Bill of Materials – For more information, see Setting Up Segment Substitution for Bill of Materials by Warehouse.

Note For a default account number to be replaced by a substituted account, the substituted account must be a valid general ledger account created in General Ledger Account Maintenance.

The following example shows how segment substitution is set up to post by warehouse for inventory transactions entered in Miscellaneous Charge Maintenance. Although segment substitution can be set up to post by warehouse in the modules listed above, the default and substituted accounts for those modules are not shown in this example.

 Segment substitution is set up to post substituted accounts to the general ledger (by warehouse)

In the Inventory Management Options window, in the G/L Segment for Whse Postings field, the following segment is selected to determine the account segment that serves as a substitute:

• Location

In the Warehouse Code Maintenance window, for warehouse code 002, in the Post to field, the following sub account is selected for the segment to determine the substituted account for posting:

• 03 Central Warehouse

 

 Default account numbers are set up for inventory items

In the Product Line Maintenance window, default accounts are set up for each of the following accounts, and the Post by Whse check box is selected for each corresponding account:

 Inventory   115-00-00

 Cost of Goods Sold  450-01-00

 Inventory Adjustment  960-00-00

 Purchases Clearing  200-03-00

 

 Segment substitution is performed for inventory items

In the Transaction Entry window, a transaction is entered for the following warehouse and inventory item:

 Transaction Type: Sales

 Entry Number:  00000010

Warehouse:  002

Item Code:  AM/FM STEREO

The default accounts for inventory items are replaced with the following substituted accounts and posted to the general ledger.

Inventory items:

 Inventory*   115-00-03

 Cost of Goods Sold  450-01-03

 Inventory Adjustment*  960-00-03

 Purchases Clearing*  200-03-03

*This general ledger account is substituted only after the Sales Journal is updated.