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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 sub account 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 division occurs in the following modules:
Accounts Receivable
eBusiness Manager
Return Merchandise Authorization (RMA)
Sales Order
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 Account Maintenance.
The following example shows how segment substitution is set up to post by division for transactions entered in Accounts Receivable Invoice Data Entry. Although segment substitution can be set up to post by division in the modules listed above, the default and substituted accounts for those modules are not shown in this example.
In Accounts Receivable Options, in the G/L Segment to Post A/R Sales field, the following segment description is selected to determine the account segment that serves as a substitute:
Department
In Division Maintenance, for Division No. 01, in the Post to field, the following subaccount is selected for the segment to determine the substituted account for posting:
02 West Sales Office
In Accounts Receivable Miscellaneous Item Maintenance, for sales code WIDGET, default accounts are set up in the following fields:
Sales Account 400-01-00
Cost of Goods Account 450-10-00
Inventory Account 115-00-00
Note The Post Sales by Division check box is selected to post sales, cost of goods sold, and inventory to substituted accounts.
In Accounts Receivable Invoice Data Entry, an invoice is entered for the following item code and division:
Invoice Number: 0100060-IN
Customer No.: 01-ABF (customer ABF is assigned to division 01)
Item Code: WIDGET (8" x 10" Widgets)
Note To post to substituted accounts during invoice entry, you must select a customer that is assigned to a division for which a subaccount has been defined. For example, if a subaccount is defined for division 01, a customer for that division must be selected for the invoice entry.
The default accounts for sales, cost of goods sold, and inventory are replaced with the following substituted accounts and posted to the general ledger:
Sales Account 400-20-02
Cost of Goods Account 450-20-02
Inventory Account 115-20-02
In Accounts Receivable Invoice Data Entry, customer 01-ABF is entered, but only the default account for sales is replaced by the substituted account. A substituted account for cost of goods sold and inventory is not used because it is not a valid general ledger account. Sales, cost of goods sold, and inventory amounts are posted to the general ledger for the following substituted and default accounts:
Sales Account 400-20-02 (substituted account)
Cost of Goods Account 450-10-00 (default account)
Inventory Account 115-00-00 (default account)
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 sub account 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:
Sales Order
eBusiness ManagerReturn Merchandise Authorization (RMA)
Accounts Receivable
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 Account Maintenance.
The following example shows how segment substitution is set up to post by division for transactions entered in Sales Order Entry. Although segment substitution can be set up to post by division in the modules listed above, the default and substituted accounts for those modules are not shown in this example. For an example of setting up segment substitution by warehouse, see the FAQ regarding setting up segment substitution for the Sales Order module by warehouse.
In Accounts Receivable Options, in the G/L Seg for Sales Postings field, the following segment description is selected to determine the account segment that serves as a substitute:
Location
In Division Maintenance, for Division No. 01, in the Post to field, the following sub account is selected for the segment to determine the substituted account for posting:
03 Central Warehouse
In Sales Order Options, in the Post Sales to G/L by Division field, the following option is selected:
Yes
In Product Line Maintenance, default accounts are set up for the following inventory accounts:
Inventory
115-00-00
Cost of Goods Sold
450-01-00
Sales/Income
400-01-00
Sales Returns
425-00-00
In Sales Order Options, default accounts are set up for the following special item accounts:
Default Special Item Sales Account
400-01-00
Default Special Item COGS Account
450-10-00
Special Items Purchases Account
450-01-00
In Sales Order Miscellaneous Item Maintenance, default accounts are set up for the following miscellaneous item accounts:
Sales Account
400-01-00
Cost of Goods Account
450-10-00
Inventory
115-00-00
In Sales Order Entry, an order is entered for the following inventory items and division:
Invoice Number: 0000174
Customer No.: 01-ABF (customer ABF is assigned to division 01)
Item Code: Inventory item
Special item
Misc item
Note To post to substituted accounts during invoice entry, you must select a customer that is assigned to a division for which a sub account has been defined. For example, if a sub account is defined for division 02, a customer for that division must be selected for the invoice entry.
The default accounts for inventory items, special items, and miscellaneous 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
Sales/Income
400-01-03
Sales Returns
425-00-03
Special items:
Default Special Item Sales Account
400-01-03
Default Special Item COGS Account
450-10-03
Special Items Purchases Account
450-01-03
Miscellaneous items:
Sales Account
400-01-03
Cost of Goods Account
450-10-03
Inventory*
115-00-03
*This general ledger account is substituted only after the Sales Journal is updated.
Additional Division Accounts:
If posting by division, the following default accounts defined for each division in Division Maintenance are also posted to substituted accounts. These accounts only reflect activities for the division they are assigned to. These accounts are substituted only after the Sales Journal is updated.
Discounts Allowed/Lost*
950-02-03
Freight*
400-03-03
Sales Tax*
235-01-03
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 sub account 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:
Sales Order
Purchase Order
Work Order
eBusiness ManagerReturn Merchandise Authorization (RMA)
Bill of Materials – For more information, see Setting Up Segment Substitution for Bill of Materials by Warehouse topic in the Bill of Materials Help system.
Inventory Management – For more information, see Setting Up Segment Substitution for Inventory Management by Warehouse topic in the Inventory Management Help system.
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 Account Maintenance.
The following example shows how segment substitution is set up to post by warehouse for transactions entered in Sales Order Entry. 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. For an example of setting up segment substitution by division, see the FAQ regarding setting up segment substitution for the Sales Order module by division.
In Inventory Management Options, 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 Warehouse Code Maintenance, 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
In Sales Order Options, in the Post Sales to G/L by Division field, the following option is selected for posting substituted accounts by warehouse:
By Warehouse
In Product Line Maintenance, default accounts are set up for the following accounts:
Inventory
115-00-00
Cost of Goods Sold
450-01-00
Sales/Income
400-01-00
Sales Returns
425-00-00
In Product Line Maintenance, the Post by Whse check box is selected for each corresponding account.
In Sales Order Entry, an order is entered for the following warehouse and inventory item:
Invoice Number
0100056
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
Sales/Income
400-01-03
Sales Returns
425-00-03
*This general ledger account is substituted only after the Sales Journal is updated.
Note You can view default accounts or substituted accounts for sales and cost of goods accounts in Sales Order Entry after an item is entered.
