41MAXFMG

Finance Managers Guide
Release 4.1
Copyright 1997-2000, Project Software & Development, Inc.
Although every effort has been made by Project Software & Development, Inc. (PSDI) to ensure the accuracy and completeness of this document and related program material, no warranty, express or implied, is made by Project Software & Development, Inc. as to the accuracy and completeness of this document or the related program material, nor shall the fact of distribution of this document and the related program material constitute any such warranty, and no responsibility is assumed by Project Software & Development, Inc. in connection therewith. Restricted Rights Legend Use, duplication, or disclosure by the U.S. Government is subject to restrictions as set forth in subdivision (b)(3)(ii) of the Rights in Technical Data and Computer Software clause at 52.227-7013. Material from this document may not be duplicated or copied without the express written permission of Project Software & Development, Inc. "This product includes software developed by the Apache Group for use in the Apache HTTP server project (http://www.apache.org/)."
THIS SOFTWARE IS PROVIDED BY THE APACHE GROUP ``AS IS'' AND ANY EXPRESSED OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE ARE DISCLAIMED. IN NO EVENT SHALL THE APACHE GROUP OR ITS CONTRIBUTORS BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, OR CONSEQUENTIAL DAMAGES (INCLUDING, BUT NOT LIMITED TO, PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES; LOSS OF USE, DATA, OR PROFITS; OR BUSINESS INTERRUPTION) HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY, WHETHER IN CONTRACT, STRICT LIABILITY, OR TORT (INCLUDING NEGLIGENCE OR OTHERWISE) ARISING IN ANY WAY OUT OF THE USE OF THIS SOFTWARE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.
Copyright 1997-2000, Project Software & Development, Inc. MAXIMO is a registered trademark of Project Software & Development, Inc. Other products and brand names are trademarks or registered trademarks of their respective companies.
CONTENTS
CHAPTER 1 INTRODUCTION OVERVIEW .................................................................................................................13 IN THIS GUIDE ...........................................................................................................14 RELATED MAXIMO DOCUMENTATION...............................................................15 SECURITY ...................................................................................................................16 Authorizing GL Component Access..........................................................................16 DATABASE CONFIGURATION................................................................................17 GL Account Configuration........................................................................................17 Account Components ............................................................................................17 Mandatory and Optional Components...................................................................17 Validation..................................................................................................................18 GL Account Code Validation................................................................................18 Financial Period Validation...................................................................................19 THE CHART OF ACCOUNTS....................................................................................20 LOCATIONS IN MAXIMO.........................................................................................20 Operating Locations ..................................................................................................21 Other Equipment Type Locations .............................................................................21 Storeroom Locations .................................................................................................21 Other Inventory Type Locations ...............................................................................22 CHAPTER 2 MAXIMO TRANSACTION TYPES OVERVIEW .................................................................................................................23 CHAPTER 3 MAXIMO GENERAL LEDGER ACCOUNTS OVERVIEW .................................................................................................................33 Inventory-Related Accounts......................................................................................34 Company-Related Accounts......................................................................................40 Resource Control Accounts.......................................................................................41
Contents
Resource Codes.........................................................................................................44 Tax Accounts ............................................................................................................46 Location and Equipment Accounts ...........................................................................48 Preventive Maintenance Account..............................................................................49 CHAPTER 4 FINANCIAL PROCESSES OVERVIEW .................................................................................................................51 Companies Application .........................................................................................52 Tools Application..................................................................................................52 Labor Application .................................................................................................52 Labor Reporting Application ................................................................................52 Equipment Application .........................................................................................52 Operating Locations Application ..........................................................................52 Inventory Control Application ..............................................................................53 Issues and Transfers Application ..........................................................................53 Preventive Maintenance Application ....................................................................53 Work Orders Applications ....................................................................................54 Purchase Requisitions Application........................................................................54 Purchase Orders Application.................................................................................54 Invoices Application .............................................................................................54 COMPANIES APPLICATION.....................................................................................58 Process: Insert Company Record .............................................................................58 Process: Insert Company Location Record ..............................................................59 TOOLS APPLICATION...............................................................................................60 Process: Insert Internal Tool Record........................................................................60 Process: Insert External Tool Record.......................................................................61 LABOR APPLICATION ..............................................................................................62 Process: Insert Internal Labor Record ......................................................................63 Process: Insert External Labor Record.....................................................................64 Process: Insert Labor Location Record ....................................................................65 LABOR REPORTING APPLICATION.......................................................................66 Process: Report Internal Labor Usage......................................................................66 Primary Transaction ..............................................................................................67 Process: Report External Labor Usage.....................................................................68 EQUIPMENT APPLICATION ....................................................................................71 Process: Insert Equipment Record ...........................................................................71 Process: Move/Modify Equipment...........................................................................71
Contents
Moving Equipment Between Operating or Other Non-Storeroom Locations .......72 Moving Rotating Equipment From a Non-Storeroom Location to a Storeroom or Other Inventory Control-Type Location ...........................................................73 Primary Transaction ..............................................................................................73 OPERATING LOCATIONS APPLICATION..............................................................74 Process: Insert Operating Location Record..............................................................74 Process: Insert Repair or Salvage Location Record .................................................75 INVENTORY CONTROL APPLICATION.................................................................75 Process: Insert Item/Location Record ......................................................................75 Process: Duplicate Record .......................................................................................77 Process: Add Item to Storeroom Location ...............................................................77 Process: Add Storeroom Location............................................................................78 Process: Adjust Current Balance..............................................................................78 Process: Adjust Physical Count................................................................................80 Process: Reconcile Balances ....................................................................................80 Process: Adjust Standard Cost .................................................................................81 Process: Adjust Average Cost ..................................................................................82 Process: Adjust Capitalized Cost Value From N to Y..............................................83 Primary Transactions.............................................................................................83 Secondary Events ..................................................................................................85 Process: Adjust Capitalized Cost Value from Y to N ..............................................86 Primary Transaction ..............................................................................................87 Secondary Events ..................................................................................................88 Process: Reorder Items.............................................................................................89 Process: Issue an Item ..............................................................................................89 Column Name .......................................................................................................92 Issues and Transfers ..............................................................................................92 Issue Current Item .................................................................................................92 Process: Return an Item............................................................................................93 Primary Transaction ..............................................................................................93 Process: Transfer an Item.........................................................................................95 Method ..................................................................................................................97 Issues and Transfers ..............................................................................................97 Transfer Current Item............................................................................................97 ISSUES AND TRANSFERS APPLICATION .............................................................97 Process: Issue an Item ..............................................................................................97 Primary Transaction ..............................................................................................97
Contents
Process: Return an Item............................................................................................99 Primary Transaction ..............................................................................................99 Process: Transfer Out.............................................................................................100 Primary Transaction ............................................................................................100 Secondary Transaction ........................................................................................101 Process: Transfer In ...............................................................................................102 Primary Transaction ............................................................................................103 Secondary Transaction ........................................................................................104 Process: Material Receipt, Internal ........................................................................105 Process: Report Metered Material Usage Against a Work Order...........................105 Primary Transaction ............................................................................................106 PREVENTIVE MAINTENANCE APPLICATION...................................................106 Process: Insert Preventive Maintenance Record ....................................................106 Process: Insert Work Order....................................................................................107 WORK ORDERS APPLICATIONS...........................................................................108 Process: Insert Work Order....................................................................................108 Process: Report Actual Material Usage..................................................................110 If Issue Type Field is set to Issue (the Default) ...............................................110 If Issue Type Field is set to Return ..................................................................111 Process: Report Actual Labor Usage......................................................................111 Process: Report Actual Tool Usage .......................................................................112 Internal Tools ......................................................................................................112 External Tools .....................................................................................................113 Process: Move/Modify Equipment.........................................................................114 PURCHASE REQUISITIONS APPLICATION ........................................................114 Process: Insert External PR Record .......................................................................114 Process: Insert Internal PR Record.........................................................................115 Process: Insert PR Line Item Record .....................................................................115 Case 1: Materials to Be Delivered to a Storeroom (Issue on Receipt? = N) ......117 Case 2: Direct Issue Item (Issue on Receipt? = Y) and Charge to Store? = N ...118 Case 3: Service Associated With Rotating Equipment and Charge to Store? = Y (Issue on Receipt? = Y)...................................................................................120 Process: Move/Modify Equipment.........................................................................120 PURCHASE ORDERS APPLICATION ....................................................................120 Process: Insert External, Blanket/Pricing Agreement, Release PO Record............121 Process: Insert Internal PO Record ........................................................................121 Process: Insert PO Line Item Record .....................................................................121
Contents
Process: Approve PO Record.................................................................................123 Process: Material Receipt, External, into Storeroom .............................................123 Primary Transaction ............................................................................................123 Secondary Transaction ........................................................................................124 Process: Material Receipt, External, Issue on Receipt ...........................................124 Primary Transaction ............................................................................................125 Secondary Transaction ........................................................................................125 Process: Material Receipt, Internal ........................................................................125 Process: Service Receipt ........................................................................................126 Process: Move/Modify Equipment.........................................................................126 INVOICES APPLICATION .......................................................................................126 Process: Insert Invoice ...........................................................................................127 Process: Insert Invoice Line ...................................................................................127 Process: Distribute Costs........................................................................................128 Process: Approve Invoice ......................................................................................129 Primary Transaction (Invoice Total Transaction) ...............................................130 Additional Transactions ......................................................................................130 Service Transaction for Each Invoice Line With no Associated PO Line...........130 Charge to Store? = N.......................................................................................131 Charge to Store? = Y.......................................................................................132 Tax Transactions .................................................................................................133 Transactions Associated With Cost Variances Between Receipt and Invoice ....134 VARIANCES FOR MATERIALS..................................................................134 VARIANCES FOR SERVICES......................................................................142 Transactions Resulting From the Distribute Costs Process .................................144 Transactions Not Written to the General Ledger.................................................145 Transaction for Accounts Payable System ......................................................145 CHAPTER 5 GL ACCOUNT TRACKING OVERVIEW ...............................................................................................................147 The On-Screen Fields Section.................................................................................147 Merging Account Codes......................................................................................148 Intermediate Sources of Account Codes .............................................................150 On-Screen Fields and Hidden Fields...................................................................150 The Database Section..............................................................................................150 RESOURCES..............................................................................................................151 Companies Application ...........................................................................................151
Contents
On-Screen Fields .............................................................................................151 Database ..........................................................................................................151 Tools Application....................................................................................................152 On-Screen Fields (Hidden)..............................................................................152 Database ..........................................................................................................153 LABOR .......................................................................................................................154 Labor Application ...................................................................................................154 On-Screen Fields (Hidden)..............................................................................154 Database ..........................................................................................................154 Labor Reporting ......................................................................................................155 On-Screen Fields .............................................................................................156 Database ..........................................................................................................156 INVENTORY .............................................................................................................157 Inventory Control Application ................................................................................157 Accounts Only in the Inventory Table.................................................................158 On-Screen Fields (Hidden)..............................................................................159 Database ..........................................................................................................159 Accounts Both in the Inventory Table and in the Locations Table .....................159 On-Screen Fields (Hidden)..............................................................................160 Database ..........................................................................................................160 Accounts in Only the Locations Table ................................................................160 On-Screen Fields .............................................................................................161 Database ..........................................................................................................161 Inventory Control Options ......................................................................................162 Issue Current Item ...............................................................................................162 Transfer Current Item..........................................................................................162 Adjust Physical Count .........................................................................................162 Reconcile Balances .............................................................................................162 Adjust Current Balance .......................................................................................162 Adjust Standard Cost...........................................................................................163 Adjust Average Cost ...........................................................................................163 Adjust Capitalized Cost.......................................................................................163 Add Storeroom Location.....................................................................................163 Inventory Control Transactions............................................................................164 Transaction Class Field = Receipts, for Transfer Transactions...........................164 Transaction Class Field = Receipts, for PO Material Receipt Transactions........164 For Storeroom Purchases (Issue on Receipt? = N) From Outside Vendor ......164
Contents
On-Screen Fields .............................................................................................164 Database ..........................................................................................................165 For Storeroom Purchases (Issue on Receipt? = N) From Internal Vendor (Another Storeroom) .......................................................................................165 On-Screen Fields .............................................................................................165 Database ..........................................................................................................166 For Direct Issue Purchases (Issue on Receipt? = Y) From Outside Vendor....166 On-Screen Fields .............................................................................................166 Database ..........................................................................................................167 Transaction Class Field = Inventory, Type Field = INSERTITEM ....................167 Transaction Class Field = Inventory, Type Field = PCOUNTADJ.....................167 On-Screen Fields .............................................................................................167 Database ..........................................................................................................168 Transaction Class Field = Inventory, Type Field = CURBALADJ.....................168 On-Screen Fields .............................................................................................168 Database ..........................................................................................................168 Transaction Class Field = Inventory, Type Field = AVGCSTADJ .....................169 On-Screen Fields .............................................................................................169 Database ..........................................................................................................169 Transaction Class Field = Inventory, Type Field = STDCSTADJ ......................169 On-Screen Fields .............................................................................................169 Database ..........................................................................................................170 Transaction Class Field = Inventory, Type Field = CAPCSTADJ......................170 When Adjusting From Capitalized to Noncapitalized.....................................170 On-Screen Fields .............................................................................................170 Database ..........................................................................................................170 When Adjusting From Noncapitalized to Capitalized.....................................171 On-Screen Fields .............................................................................................171 Database ..........................................................................................................171 Transaction Class Field = Inventory, Type Field = STDRECADJ......................171 On-Screen Fields .............................................................................................171 Database ..........................................................................................................172 Issues and Transfers Issues Mode ........................................................................172 On-Screen Fields, Issue Type of Issue ............................................................172 Database, Issue Type of Issue .........................................................................173 On-Screen Fields, Issue Type of Return..........................................................173 Database, Issue Type of Return.......................................................................173
Contents
Issues and Transfers Transfer Out Mode .............................................................174 On-Screen Fields .............................................................................................174 Database ..........................................................................................................174 Issues and Transfers Transfer In Mode ................................................................175 On-Screen Fields .............................................................................................175 Database ..........................................................................................................175 EQUIPMENT .............................................................................................................176 Equipment Application ...........................................................................................176 On-Screen Fields (Hidden)..............................................................................176 Database ..........................................................................................................176 Move/Modify Dialog Box...................................................................................177 Moving Equipment Between Operating or Other Non-Storeroom Locations .177 On-Screen Fields .............................................................................................177 Database ..........................................................................................................177 Moving Rotating Equipment From a Non-Storeroom Location to a Storeroom or Other Inventory-Type Location.................................................178 On-Screen Fields .............................................................................................178 Database ..........................................................................................................179 Equipment Move History Dialog Box.................................................................179 Operating Locations Application ............................................................................180 On-Screen Field ..............................................................................................180 Database ..........................................................................................................180 PREVENTIVE MAINTENANCE..............................................................................180 On-Screen Field ..............................................................................................180 Database ..........................................................................................................180 WORK ORDERS........................................................................................................181 Work Order Tracking..............................................................................................181 On-Screen Fields .............................................................................................181 Database ..........................................................................................................181 Quick Reporting and Work Manager ......................................................................181 Actual Tool Usage ..................................................................................................182 On-Screen Fields .............................................................................................182 Database ..........................................................................................................182 Actual Labor Usage.................................................................................................183 Actual Material Usage.............................................................................................184 PURCHASING ...........................................................................................................184 Purchase Requisitions .............................................................................................184
10
Contents
PR Lines Tab.......................................................................................................184 On-Screen Fields, Material Requisitions for Storeroom From External Vendor.............................................................................................................184 Database ..........................................................................................................184 On-Screen Fields, Material Requisitions for Direct Issue (Issue on Receipt? = Y) ..................................................................................................185 Database ..........................................................................................................185 On-Screen Fields, Material Requisitions From Internal Vendor (Another Storeroom) ......................................................................................................186 Database ..........................................................................................................186 On-Screen Fields, Service Requisitions (Issue on Receipt? = Y)....................186 On-Screen Fields, Service Requisitions (Issue on Receipt? = Y) for Rotating Equipment, When Charge to Store? = Y ..........................................187 Database ..........................................................................................................187 Purchase Orders ......................................................................................................187 PO Lines Tab ......................................................................................................187 On-Screen Fields, Material Orders From External Vendor .............................188 Database ..........................................................................................................188 Material Receipts Tab .........................................................................................188 Service Receipts Tab...........................................................................................188 INVOICES..................................................................................................................189 Invoice Lines Tab....................................................................................................189 On-Screen Fields .............................................................................................189 Database ..........................................................................................................190 Distribute Costs Dialog Box ...............................................................................190 On-Screen Fields .............................................................................................191 Database ..........................................................................................................191 Approve Invoice..................................................................................................192 Invoice Total Transaction Database .............................................................192 Service for Item With No PO Database .......................................................192 Tax Transactions Database...........................................................................193 Cost Variance Transactions Database ..........................................................194 Transactions Resulting From Distributing Costs Database ..........................196 ACCOUNTS PAYABLE TRANSACTIONS.............................................................196 Database..............................................................................................................196 APPENDIX GL DATABASE COLUMN DEFINITIONS......................................199
11
Contents
12
CHAPTER 1 INTRODUCTION
OVERVIEW
General ledger (GL) accounting practices are supported within MAXIMO applications. Thus, you can integrate MAXIMO with a financial application, so that you can both access MAXIMO data and track MAXIMO transactions within your financial application. The MAXIMO 4i Finance Managers Guide discusses the financial data collection functionality in MAXIMO. More specifically, the guide explains how GL account codes default as a result of standard MAXIMO processes, such as record insertion, resource usage, materials receipt, and invoice approval. See the MAXIMO 4i System Administrators Guide for information about establishing the account codes used in MAXIMO.
13
Chapter 1
IN THIS GUIDE
The MAXIMO 4i Finance Managers Guide consists of five chapters. The following table shows a brief description of each chapter.
Chapter
1. Introduction
Description
Describes the general contents of each chapter; lists other documentation relevant to implementing accounting functionality in MAXIMO; briefly mentions facets of MAXIMO that are of particular interest to the finance manager.
2. MAXIMO Briefly covers all transaction types created by Transaction Types MAXIMO, groups transactions by their relevant database tables, and lists the processes by which you create the transactions. 3. MAXIMO General Contains a list of all MAXIMO GL account names Ledger Accounts (such as inventory control account), with brief descriptions of the functions of each account. 4. Financial Processes Contains a list and descriptions of all MAXIMO processes (such as issuing an item to a work order) that cause GL accounts to be written to database columns. If the process results in a general ledger transaction, then the process is called a financial transaction. For each financial transaction, there is an example showing:

the source of the debit account code the source of the credit account code the line cost of the transaction
14
Introduction
5. GL Account Tracking
Covers the on-screen GL account fields, including hidden fields, and describes the sources of the GL account codes that can appear in those fields. Provides the same information for the associated database table column name.
RELATED MAXIMO DOCUMENTATION

This section lists the documentation that you should also be familiar with if you are implementing GL accounting in MAXIMO.
The MAXIMO 4i System Administrators Guide provides information on system administrator functions such as implementing security and managing the database. It provides information on configuring the GL account fields. The Security chapter explains how to authorize GL component access. The Database Configuration chapter explains how to specify the basic format of the GL account codes. The Chart of Accounts chapter explains how to establish account codes for use within MAXIMO. The Integration Gateway Users Guide and the individual integration guides for specific systemsOracle Financials, PeopleSoft, and SAPcover the information needed to integrate with an external financial system using integration application programming interfaces (APIs). The guides contain information on implementing the software integration and on using the integration module to transfer data between MAXIMO and your external financial system. The guides include information about both transferring journal entries from MAXIMO to your financial system and about transferring chart of accounts data from your financial system to MAXIMO. The MAXIMO 4i Users Guide and the MAXIMO online Help system describe how to use the MAXIMO maintenance system features. To fully understand Chapter 4 of the MAXIMO 4i Finance Managers Guide, you need to be familiar with the MAXIMO processes that write GL account codes
15
Chapter 1
to MAXIMO database columns. These processes occur mainly in the Inventory, Purchasing, and Work Orders modules of MAXIMO.
SECURITY
Security is of paramount importance to anyone implementing GL account codes within MAXIMO so that it can interface to a financial system. MAXIMO security is established by groups of users; a group can have as many or as few users in it as suit your security purposes. Establishing and maintaining user and group security is done via the Signature Security application. It is important that you and others in finance management understand that MAXIMO addresses security down to the individual data element or field level and does so in an easily managed way. Detailed information about establishing security levels for users is covered in the Security chapter in the MAXIMO 4i System Administrators Guide and in the Signature Security online Help. Note that MAXIMO can take advantage of the client/server SQL-based access security. This can be controlled on a user-by-user level.
Authorizing GL Component Access

GL account code formats are set up using the GL Account Configuration option in Database Configuration (see page 17). You use the Authorize GL Component Access option in Signature Security to specify which groups are allowed to edit the account codes. Edit privileges are specified separately for each component of the account code. Thus, you can restrict user groups from being able to update specified GL components. More specifically, a particular group of users can be restricted from editing some components of the GL account codes, but allowed edit privileges for other components.
16
Introduction
For more information about authorizing GL component access, see the Security chapter in the MAXIMO 4i System Administrators Guide.
DATABASE CONFIGURATION GL Account Configuration

Use the GL Account Configuration option in the Database Configuration application to specify the basic format of the GL account codes.
Account Components
Each GL account code is represented by a number of distinct components (also called segments). Delimiters appear between components when the account codes are displayed on the screen. However, unless you check the Write Delimiter to Database box, delimiters are not written to the database. Use GL Account Configuration to define both the length and the data type of each component, and to indicate whether each component is mandatory or optional.
Mandatory and Optional Components

Within an account code, a component can be mandatory or optional. In a fullydefined account, all mandatory components must be specified. In a partiallydefined account, a mandatory component is filled with placeholder characters, but is displayed. An optional component need not be specified and is displayed only if it is specified. Note that any optional components must come at the end of the account string. That is, you cannot place an optional component between two mandatory components.
17
Chapter 1
! Example
You have designated the first three components of an account as mandatory and the fourth as optional, making 1234-567 an unacceptable account code. Since the third component is mandatory, you must assign characters to the third component, even if the characters are placeholders. Thus, if both the third and fourth components are unknown, the account code would be 1234-567-???, assuming that you are using the character ? as your placeholder. Since the fourth component is both optional and unknown, that component is not displayed.
For more information on using the GL Account Configuration option, see the Database Configuration chapter in the MAXIMO 4i System Administrators Guide.
Validation
MAXIMO is shipped with GL validation disabled (i.e., with a check mark in the Disable GL Validation box in Chart of Accounts). If the Disable GL Validation box is checked, then MAXIMO neither validates GL account codes against Chart of Accounts nor validates financial periods. Furthermore, checking this box disables the GL Account Navigator dialog box throughout all applications. Thus, leaving the check mark in the Disable GL Validation box effectively disables the general ledger feature, although you can still enter codes in GL account fields. To enable both GL account code validation and financial period validation, remove the check mark from the Disable GL Validation box.
GL Account Code Validation

If you remove the check mark from the Disable GL Validation box, then a check mark automatically appears in the Validate Component Combinations box. If you want MAXIMO to validate combinations of account components against Chart of Accounts, instead of validating only the individual components, then leave the check mark in the Validate Component Combinations box.
18
Introduction
If you remove the check mark from the Validate Component Combinations box, then MAXIMO validates only individual components against Chart of Accounts.
! Example
You have configured account codes so that there are three mandatory components. You have made 1111 a valid first component, 222 a valid second component and 333 a valid third component; however, you have created no account code in Chart of Accounts containing both 222 as a second component and 333 as a third component. If the Validate Component Combinations box is checked, then you cannot use the account code 1111-222-333. If, however, the box is unchecked, then you can use the account code 1111-222-333.
Financial Period Validation

If you remove the check mark from the Disable GL Validation box, then a check mark automatically appears in the Validate Financial Periods box. If you want MAXIMO to validate that each transaction falls within an open, valid financial period, then you should leave the check mark in the Validate Financial Periods box. Otherwise, remove the check mark. To define your companys financial periods, use the Chart of Accounts application. See the Chart of Accounts chapter in the MAXIMO 4i System Administrators Guide for information on this process. NOTE: Once you close a financial period by entering an actual close date, MAXIMO will no longer assign any financial transactions to that period. Transactions will be automatically charged to the next open financial period.
19
Chapter 1
THE CHART OF ACCOUNTS

In the Chart of Accounts application, you can:

Set up financial periods Enter valid values for each of the GL account components Enter inventory-related account defaults for all inventory locations Enter company GL defaults, by company type Enter resource code control accounts Define tax codes, rates, and dates
The Chart of Accounts application is used to identify GL accounts in MAXIMO. By using the GL Account Configuration option in the Database Configuration application (see page 17), you can configure MAXIMO to use existing GL accounts defined in your financial system. Thus, the two systems can work interactively on the same account structure. To ensure that your accounting systems GL accounts are properly represented in MAXIMO, check the Chart of Accounts application, which displays all of the GL accounts available in MAXIMO. For more information on using the Chart of Accounts application, see the Chart of Accounts chapter in the MAXIMO 4i System Administrators Guide and the Chart of Accounts online Help.
LOCATIONS IN MAXIMO
MAXIMO recognizes and tracks a variety of location types. You should understand both the differences between these location types and the purpose of each location type. Note that a GL account code can be established for any type of location.
20
Introduction
Operating Locations
Operating locations are the locations in which equipment operates; therefore, work orders are usually written either against the location itself or against the equipment in an operating location. Operating locations are also the locations that are used to build a location hierarchy. The location hierarchy can be designed to include all locations in your plant against which work orders are written, and can provide a means of tracking the movement of equipment into and out of locations. You can have several location hierarchies within MAXIMO, and such hierarchies can share locations. Thus, we recommend that you assign default GL account codes to locations, instead of to equipment, in MAXIMO. See the Equipment chapter in the MAXIMO 4i Users Guide and the Operating Locations online Help for more information on operating locations.
Other Equipment Type Locations

In addition to operating locations, equipment can also be located in other equipment type locations, such as vendor, salvage, and repair locations. You can track equipment not only as it moves from one operating location to another, but also as it moves to a vendor or repair location, and finally, to salvage.
Storeroom Locations
Storeroom locations are the names of your inventory storerooms, the places inventory items are stocked and issued from. See the Inventory chapter in the MAXIMO 4i Users Guide and the Inventory online Help for more information on storeroom locations and other inventory type locations.
21
Chapter 1
Other Inventory Type Locations

Other inventory type locations are labor and courier. Use labor and courier locations to track inventory items either on the way to or from vendors, or en route between a storeroom and its destination (another storeroom, or a work order site, for example). Courier records can have an associated company location record, and labor records can have an associated labor location record. You can issue inventory directly to a labor or courier location, rather than to an operating location or work order. See the Equipment chapter in the MAXIMO 4i Users Guide and the Operating Locations online Help for more information on location types.
22
CHAPTER 2 MAXIMO TRANSACTION TYPES
OVERVIEW
The following table lists MAXIMO transaction types by their associated database table. This list of transaction types is divided into three columns. The first element of the left column is the database table name as it is abbreviated in the database. This abbreviated table name is followed by the full name, which is a description of the table. Next, the list name, if one exists, is provided. This list name is the database name for a value list. The values in this value list are the transaction types shown in the center column. The center column lists the transaction types that can be written to the database table listed in the left column. For each transaction type, the center column shows the database name for the transaction, followed by the transactions full name or description. Note that because the same value list may be used for more than one database table, a value list may contain extra transaction types that are not actually written to that associated database table. For example, the value list for the database table MATRECTRANS contains the transaction type ISSUE, because the same value list is used both for MATRECTRANS and for MATUSETRANS. Any transaction type that is not used in the associated database table is denoted Not used. Note also that some database tables have only one potential transaction type; therefore, there is no associated value list of transaction types.
23
Chapter 2
The right column briefly describes the MAXIMO process(es) that can write the transaction type in the center column to the database table in the left column. These processes are discussed in more detail in Chapter 4, Financial Processes.
Database Table INVTRANS Inventory Transactions table; List name ITTYPE
Transaction Type (Value) STDCSTADJ Standard cost adjustment CURBALADJ Current balance adjustment
Associated Processes Adjust Standard Cost option in Inventory Adjust Current Balance option in Inventory Reconcile Balances option in Inventory
PCOUNTADJ Physical count adjustment AVGCSTADJ Average cost adjustment CAPCSTADJ Capitalized cost adjustment
Adjust Physical Count option in Inventory Adjust Average Cost option in Inventory Adjust Capitalized Cost option in Inventory
24
MAXIMO Transaction Types
Database Table
Transaction Type (Value) INSERTITEM Insertion of item record
Associated Processes Insert an item/location record in Inventory Duplicate record Add Item to Storeroom Location option in Inventory Transfer In or Transfer Out in the Issues and Transfers application, if used to transfer material items to a storeroom location in which the items did not previously exist.
STDRECADJ Standard receipt adjustment
Material Receipt into storeroom in Purchase Orders if: 1) Default issue cost is set to standard, AND 2) Receipt price differs from the standard cost.
25
Chapter 2
Database Table MATRECTRANS Material Receipts Transactions table; List name ISSUETYPE
Transaction Type (Value) ISSUE Issue; Not used in MATRECTRANS.
Associated Processes None (appears in the list because the value list for MATRECTRANS is the same as that for MATUSETRANS) None (appears in the list because the value list for MATRECTRANS is the same as that for MATUSETRANS) Material Receipt in Purchase Orders Transfer Current Item option in Inventory Transfer In and Transfer Out in Issues and Transfers Material receipt, internal in Purchase Orders Move/modify equipment from non-storeroom location to inventory-type location in Equipment, Purchasing, or Work Orders
RETURN Return; Not used in MATRECTRANS.
RECEIPT Material receipt TRANSFER Material transfer
26
Database Table
Transaction Type (Value) INVOICE Invoice variance
Associated Processes Approve invoice for materials purchased for a storeroom, if there is any cost variance between receipt and invoice
SERVRECTRANS Service Receipts Table; (no List name)
Not named; SERVRECTRANS has only one associated transaction type
Service receipt in Purchase Orders Approve invoice for services, either with no PO or with a cost variance between receipt and invoice Approve invoice for services subsequent to distributing costs for those services
27
Chapter 2
Database Table MATUSETRANS Material Usage table; List name ISSUETYPE
Transaction Type (Value) ISSUE Issue or usage
Associated Processes Issue an item in Inventory Control Issue an item in Issues and Transfers Report metered material usage against a work order Report actual material usage Material receipt, external, issue on receipt
RETURN Return item to store
Return a non-rotating item using Issue Current Item in Inventory Return an item using Issues and Transfers Report actual material usage
RECEIPT Receipt; Not used in MATUSETRANS
None (appears in the list because the value list for MATUSETRANS is the same as that for MATRECTRANS)
28
Database Table
Transaction Type (Value) TRANSFER Transfer; Not used in MATUSETRANS
Associated Processes None (appears in the list because the value list for MATUSETRANS is the same as that for MATRECTRANS) Approve invoice for materials to be issued on receipt, if there is any cost variance between receipt and invoice
INVOICE Invoice variance
INVOICETRANS Invoice Transactions table; List name INVCETYPE
TOTAL Invoice total transaction TAX1 Tax transaction for tax of type 1
Approve invoice; accounts for the total amount of the invoice, including tax Approve invoice; linecost equals the sum of tax type 1 over all invoice lines, if invoice includes tax of type 1 Approve invoice; linecost equals the sum of tax type 2 over all invoice lines, if invoice includes tax of type 2
TAX2 Tax transaction for tax of type 2
29
Chapter 2
Database Table
Transaction Type (Value) TAX3 Tax transaction for tax of type 3
Associated Processes Approve invoice; linecost equals the sum of tax type 3 over all invoice lines, if invoice includes tax of type 3 Approve invoice; linecost equals the sum of tax type 4 over all invoice lines, if invoice includes tax of type 4 Approve invoice; linecost equals the sum of tax type 5 over all invoice lines, if invoice includes tax of type 5 Approve invoice for materials for storeroom if: 1) There exists a price variance between receipt and invoice, AND 2) Either UpdateInventory = 1 and invoice quantity > current balance, OR UpdateInventory = 0
INVCEVAR Invoice price variance transaction
30
Database Table
Transaction Type (Value) CURVAR Currency variance transaction
Associated Processes Approve invoice for materials for storeroom if: 1) There exists a currency variance between receipt and invoice, AND 2) Either UpdateInventory = 1 and invoice quantity > current balance, OR Update Inventory =0
LABTRANS Labor Transactions Table; List name LTTYPE
WORK
Report labor usage of type WORK (i.e., for hours expended in actual work time) Report labor usage of type NON-WORK (i.e., for hours expended in nonwork transaction) Report labor usage of type OT-REF (i.e., for hours expended in overtime refused)memo transaction only
NON-WORK
OT-REF
31
Chapter 2
Database Table
Transaction Type (Value) TRAV
Associated Processes Report labor usage of type TRAV (i.e., for hours expended in travel time). Synonym of WORK. Report labor usage of type WMATL (i.e., for hours expended waiting for materials). Synonym of WORK. Report labor usage of type SICK (i.e., for hours expended in sick time). Synonym of NON-WORK. Report labor usage of type VAC (i.e., for hours expended in vacation time). Synonym of NON-WORK.
WMATL
SICK
VAC
TOOLTRANS Tools Transaction table; (no List name)
Not named; TOOLTRANS has only one associated transaction type
Report actual tool usage in Work Orders
APTRANS Accounts Payable Transaction table; (no List name)
Not named; APTRANS has only one associated transaction type
Approve invoice; transaction is created for posting to the external accounts payable system.
32
CHAPTER 3 MAXIMO GENERAL LEDGER ACCOUNTS
OVERVIEW
This chapter consists primarily of a list by account name of all valid account types that you can both establish and use within MAXIMO. You may set up these accounts within MAXIMO so that they will correspond to accounts that you already use in your external accounting system. In establishing your Chart of Accounts within MAXIMO, you would match the account codes in your accounting system with the account names in the MAXIMO Chart of Accounts application. For information on the Chart of Accounts application, refer to the Chart of Accounts chapter in the MAXIMO System Administrators Guide and to the Chart of Accounts online Help. All MAXIMO transactions have both a debit side and a credit side. For a given transaction, MAXIMO always writes a certain account to the database as the debit account; however, the cost of the transaction may be negative or positive in order to create the correct net accounting effect. In other words, MAXIMO may create the net effect of a credit to a given account by debiting that account with a negative cost amount. For example, in recording a receipts price variance, MAXIMO always debits the receipts price variance account, regardless of whether the receipt price is higher or lower than the purchase order price. Thus, if the receipt price is lower than the purchase order price, then MAXIMO debits the receipts price variance account by a negative amount. Similarly,
33
Chapter 3
MAXIMO may create the net effect of a debit by crediting an account by a negative amount.
Inventory-Related Accounts
Account
Inventory Control Account
Description
Represents the value of the stock in the associated storeroom location. When transferring an item, MAXIMO debits the storeroom to which the item is going and credits the storeroom from which the item is coming. Furthermore, MAXIMO credits the inventory control account as a result of the following transactions involving inventory items: receipts price variance, invoice price variance, currency variance, and material issue or usage. MAXIMO debits the inventory control account as a result of the following transactions involving inventory items: receipt, total cost variance, and return. The inventory control account is also the debit account when stock adjustments result from any of the following processes:

adjust current balance reconcile balances adjust average cost adjust standard cost adjust capitalized cost from yes to no
34
MAXIMO General Ledger Accounts
Receipts Price Variance Account
Used for standard costing only, to account for differences between the inventory standard cost and the receipt cost (which is specific to the storeroom), for items in the associated storeroom location. This account is the debit account in an inventory standard receipt adjustment transaction. The transaction amount is positive when the purchase price at receipt is greater than the standard cost, and negative otherwise. The receipts price variance account is paired with the inventory control account; when the receipts price variance accounts value increases, the inventory control account value decreases. NOTE: Variance accounts track price variances by storeroom location, not by item.
Invoice Price Variance Account
Used to account for variances in the price, expressed in the vendors currency, between receipt and invoice for the associated storeroom location. Even if the price, expressed in the vendors currency, changes between receipt and invoice, MAXIMO debits this account only if either: 1. The UpdateInventory flag in the MAXIMO.INI file is set to 0 (No), OR 2. The UpdateInventory flag in the MAXIMO.INI file is set to 1 (Yes), and the invoice quantity is greater than the current balance. (If you are using standard costing, you should set the UpdateInventory flag to 0, [No].)
35
Chapter 3
The invoice price variance account is the debit account in an invoice price variance transaction. The transaction amount is positive when the invoice line cost is greater than the receipt cost. This account is paired with the inventory control account; when the invoice price variance accounts value is increased, the inventory control accounts value is decreased. NOTE: Variance accounts track price variances by storeroom location, not by item. Currency Variance Account Used to account for differences between the receipt price and the invoice price that result from changes in the exchange rate. Even if the exchange rate fluctuates between receipt and invoice, MAXIMO debits this account only if either: 1. The UpdateInventory flag in the MAXIMO.INI file is set to 0 (No), OR 2. The UpdateInventory flag in the MAXIMO.INI file is set to 1 (Yes), and the invoice quantity is greater than the current balance. (If you are using standard costing, you should set the UpdateInventory flag to 0, [No].)
36
The currency variance account is the debit account in a currency variance transaction. If, as a result of an exchange rate change, the invoice cost in base currency exceeds the receipt cost in base currency, then the transaction amount is positive. If, as a result of an exchange rate change, the invoice cost in base currency is less than the receipt cost in base currency, then the transaction amount is positive. This account is paired with the inventory control account; when the currency variance accounts value increases, the inventory control accounts value decreases. NOTE: Variance accounts track price variances by storeroom location, not by item. Shrinkage Cost Account Used to account for differences between actual inventory quantities (usually determined by taking a physical count), and MAXIMO-calculated quantities. This account is the credit account in a current balance adjustment transaction. The transaction amount is positive when the actual inventory quantity is greater than the MAXIMO-calculated current balance. This account is paired with the inventory control account, which is the debit account in a current balance adjustment transaction. Inventory Cost Adjustment Account Used to account for changes in either the average price or the standard price. These changes result from using the Adjust Average Cost and Adjust Standard Cost options, respectively.
37
Chapter 3
This account is the credit account in an average cost adjustment or standard cost adjustment transaction. When the inventory cost adjustment account is credited, the inventory control account is debited. When the average or standard cost is increased, the transaction amount is positive. Inventory GL Account (item resource code) Holds the resource code associated with the item type (set up in Chart of Accounts), and appears as a segment of merged accounts in transactions such as issues, returns, and transfers of the item from the storeroom location. Not used for any MAXIMO transactions. Holds the accumulated cost of repairs to a piece of rotating equipment until it is moved into a storeroom. Thus, the rotating suspense account is the debit account for work orders that are charged to a storeroom (i.e., for which Charge to Store? = Y). This account is then charged when material, labor or tools are used to complete the work order. When this account is debited for resource usage, the appropriate resource control account is credited. Furthermore, the rotating suspense account is the debit account when receiving a service associated with rotating equipment for which Charge to Store? = Y. When the invoice for this service is approved, if the cost of the service on the approved invoice exceeds the cost at receipt, this account is debited for the variance. When this account is debited for the received or invoiced service, the vendors RBNI account is credited.
38
Purchase Variance Account Rotating Suspense Account
Finally, this account is the credit account when moving rotating equipment from a non-storeroom location to an inventory-type location. When you move the equipment into the storeroom, a transaction of type TRANSFER is written to the MATRECTRANS table. As a result of the transfer transaction, when the rotating suspense account is credited, the inventory control account for the receiving storeroom is debited. For each piece of equipment, you can specify a unique rotating suspense account code in the Equipment application. However, the Rotating Suspense Account field is normally hidden in the Equipment application. Thus, in Chart of Accounts, you can specify a global rotating suspense account code to be used as the default code for the rotating suspense account.
39
Chapter 3
Company-Related Accounts
Account
RBNI Account
Description
Used to account for materials and services that have been received, but not invoiced. When an item is received into inventory, RBNI is the credit account. When the invoice for that item is approved, RBNI is the debit account for the invoice total transaction. The RBNI account can be established on a company-bycompany basis. If no account is specified for a particular company, the account is defaulted from the RBNI account in Chart of Accounts. The RBNI accounts in Chart of Accounts are listed by company type, under the Company-Related Accounts option. Holds the value of invoices which have been approved, but not paid. When the invoice is approved, AP suspense account is the credit account for the invoice total transaction, and the RBNI account is the debit account. When the invoice is paid, MAXIMO does not write a debit transaction to the general ledger. Instead, MAXIMO writes an INVOICE transaction to the INVOICE table, which interfaces with your external accounts payable system. For this INVOICE transaction, the AP suspense account is the debit account, and the AP control account is the credit account. The transaction to INVOICE is intended to instruct accounts payable to pay the invoice.
AP Suspense Account
40
AP Control Account
Used in the interface with an external accounts payable system. The AP control account holds the value of invoices to be paid with the external system. When you approve an invoice, MAXIMO writes an INVOICE transaction to the INVOICE table, which interfaces with your external accounts payable system. For this INVOICE transaction, the AP control account is the credit account, and the AP suspense account is the debit account. Please note that the transaction to INVOICE is intended to instruct accounts payable to pay the invoice and is not a general ledger transaction.
Resource Control Accounts

NOTE: The inventory control account is discussed in the Inventory-Related Accounts section, on page 34.
Account
Internal Labor Control Account
Description
Used as the credit account for any internal labor transaction; it is the accrual account for the value of internal labor issued to work orders or other activities. For example, this is credited when internal labor usage on a work order is reported. This account is set up in Chart of Accounts for all internal labor; default accounts can be set up by the labors work location. The account code can be overwritten on the individual labor record; you must unhide the Labor Control Account field in the Labor application in order to do so.
41
Chapter 3
This account is paired with the debit account in the transaction, which includes as a component the labor resource code (see the Resource Codes section in this chapter). External Labor Control Account Used as the credit account for any external labor transaction; it is the accrual account for the value of external (contract) labor issued to work orders or other activities. For example, this is credited when external labor usage on a work order is reported. This account is set up in Chart of Accounts for all external labor; default accounts can be set up by the external labors vendor. The account code can be overwritten on the individual labor record; you would need to unhide the Labor Control Account field in the Labor application in order to do so. This account is paired with the debit account in the transaction, which includes as a component the labor resource code (see the Resource Codes section in this chapter). Internal Tools Control Account Used as the credit account for any internal tool transaction; it is the accrual account for the value of internal tools issued to work orders or other activities. For example, this is credited when internal tool usage on a work order is reported. This account is set up in Chart of Accounts for all internal tools. The account code can be overwritten on the individual tool record; you would need to unhide the Tools Control Account field in the Tools application in order to do so.
42
This account is paired with the debit account in the transaction, which would include as a component the tool resource code. (See the Resource Codes section in this chapter.) External Tools Control Used as the credit account for any external tool transaction; it is the accrual account for the value of external (contractors) tools issued to work orders or other activities. For example, this is credited when external tool usage on a work order is reported. This account is set up in Chart of Accounts for all external tools; default accounts can be set up by tool vendor. The account code can be overwritten on the individual tool record; you unhide the Tools Control Account field in the Tools application in order to do so. This account is paired with the debit account in the transaction, which includes as a component the tool resource code. (See the Resource Codes section in this chapter.)
43
Chapter 3
Resource Codes
In MAXIMO you can associate resource codes, typically one segment of a GL account, with resources used on work orders: inventory items, labor and tools. This allows you to do resource accounting. With resource accounting, you assign an account component to each resource in MAXIMO. This account component, called the resource code, is merged into the debit GL account for the cost of the work order or other transaction when you record usage of the resource. Resource codes can be established in Chart of Accounts for groups of resources (items of a certain type, for example). You can also establish resource codes on individual records. The benefit of resource accounting is that it allows you to perform in-depth analysis of resource usage. For example, you can analyze usage by item type, by individual item, or by labor code.
Resource code
Labor Resource Code
Description
The labor resource component of the debit account in a transaction; for example, when a work order is written that requires a labor code, the work orders line item includes the labor resource account component in the debit GL account code. In Chart of Accounts, you can set up one labor resource code for inside labor, and a separate code for outside labor. Furthermore, if you want to track labor by individual identifier, unhide the GL account field in the Labor application and overwrite the code on the labor record itself.
44
Tool Resource Code
The tool resource component of the debit account in a transaction; for example, when a work order is written that requires a tool, that work orders line item includes the tool resource account component in the debit GL account code. In Chart of Accounts, you can set up one tool resource code for internal tools and a separate code for external tools. Furthermore, if you want to track tools by individual tool identifier, then unhide the GL account field in the Tools application and overwrite the code on the tool record itself.
Inventory Resource Code
The inventory resource component of the debit account in a transaction; for example, when a work order is written that requires an inventory item, that work orders line item includes the inventory resource account component in the debit GL account code. In Chart of Accounts, you can set up inventory resource codes by item type. Furthermore, if you want to track items by individual item identifier, then unhide the GL account field in the Inventory Control application and overwrite the code on the item record itself.
45
Chapter 3
Tax Accounts
Account
Paid Tax GL Account
Description
Used to accrue for tax that you have paid to the vendor or supplier. In most countries, tax is paid to the vendor or supplier, instead of being paid directly to the government tax authority. The Paid Tax GL field is under Tax Type GL Accounts in the lower left-hand corner of the Tax Processing dialog box. Thus, you can specify a paid tax GL account for each tax type, Tax 1 through Tax 5. Please note that MAXIMO tracks paid tax by tax type, not by tax code. Note that on the Tax Processing dialog box, there is a table in which the first column is Tax Codes. Even though the fourth column is labeled Paid Tax GL Account, MAXIMO does not track paid tax by tax code in your general ledger. Instead, MAXIMO sums the paid tax for each tax type and charges the paid tax GL account shown under Tax Type GL Accounts. When an invoice that includes tax is approved, the paid tax GL account is the debit account. The transaction amount is the sum of the amounts specified for each tax type in the invoice lines. (For an invoice of type Credit, the amount will be negative.) When the invoice includes tax, the paid tax GL account is paired with the RBNI account; in this case, when the paid tax GL account is debited, the RBNI account is credited.
46
When the invoice does not include tax, the paid tax GL account is paired with the unpaid tax GL account; in this case, when the unpaid tax GL account is debited, the paid tax account is credited. Unpaid Tax GL Account Used as the accrual account for unpaid tax. Use this account only for invoices for which you pay tax directly to the government tax authority, instead of paying tax to vendors or to suppliers. The Unpaid Tax GL field is under Tax Type GL Accounts in the lower left-hand corner of the Tax Processing dialog box. Thus, you can specify an unpaid tax GL account for each tax type, Tax 1 through Tax 5. Please note that MAXIMO tracks unpaid tax by tax type, not by tax code. Note that on the Tax Processing dialog box, there is a table in which the first column is Tax Codes. Even though the fifth column is labeled Unpaid Tax GL Account, MAXIMO does not track unpaid tax by tax code in your general ledger. Instead, MAXIMO sums the unpaid tax for each tax type and charges the Unpaid Tax GL account, shown under Tax Type GL Accounts. The unpaid tax GL account is debited when the invoice is approved. The transaction amount is the sum of the amounts specified for each tax type in the invoice lines. (For an invoice of type Credit, the amount will be negative.) The unpaid tax GL account is paired with the paid tax GL account; when the unpaid tax account is debited, the paid tax account is credited.
47
Chapter 3
Location and Equipment Accounts

Account
Operating Location GL Account
Description
Used as the default debit account for work orders, purchase orders, etc., against the location. Your only opportunity to establish this account is on the operating location record (it does not default from any other record in MAXIMO). Used as the default debit account for work orders, purchase orders, etc., against the equipment. Your only opportunity to establish this account is on the equipment record (it does not default from any other record in MAXIMO). We recommend assigning GL accounts to location records instead of to equipment (see note following this paragraph). Thus, the Equipment GL Account field is initially hidden in the Equipment application. Therefore, to specify a GL account for a particular piece of equipment, you must first unhide the Equipment GL Account field in the Equipment application. NOTE: If you choose to fully specify an equipment GL account, then costs related to that equipment (e.g., resulting from a work order) will never be charged to the operating location GL account, regardless of the equipments location. More specifically, any account components that you specify in creating the equipment GL account will override those same components in the operating location GL account. If you create a work order on
Equipment GL Account
48
equipment with GL account 1111-222-???, and the work order is to be performed at an operating location with GL account 1111-333444, the debit GL account for the work order will be 1111-222-444.
Preventive Maintenance Account

Account
PM GL Account
Description
Used when a work order is generated from a preventive maintenance record. Typically only one segment of the account code is specifiedto signify the type of work. This account is established directly on the PM record. On the work order, this account is merged with the equipment and/or location GL account code(s), if those exist. In the merge, if codes have defined components in the same segment, the PM GL account components have the highest priority; that is, the PM GL account code segment(s) override defined segments in the same position from the location and/or equipment GL account codes.
49
Chapter 3
50
CHAPTER 4 FINANCIAL PROCESSES
OVERVIEW
This chapter is a detailed discussion of the processes in MAXIMO that either create or use the general ledger accounts described in Chapter 3. In this guide, a process is a series of steps that you can perform in MAXIMO. This chapter discusses the processes that cause general ledger accounts to be written to columns in at least one database. Some of these processes, called financial processes, result in one or more general ledger transactions. More specifically, we divide the processes discussed in this chapter into two types:
those that simply cause GL account codes to be written to one or more fields of a record (i.e., columns in a database table) as the default value(s), but have no financial implication (no general ledger debit/credit transactions are created); those that not only cause GL account codes to be written to fields, but also have associated debit and credit transactions written to general ledger accounts (financial processes).
The following is a list by application of the processes we discuss in this chapter. If a process is not a financial process, we specifically state in the discussion
51
Chapter 4
that the process does not produce a general ledger transaction. Furthermore, in the following list, we distinguish the financial processes with bold type.
Companies Application

Insert company record Insert company location record
Tools Application

Insert internal tool record Insert external tool record
Labor Application

Insert internal labor record Insert external labor record Insert labor location record
Labor Reporting Application

Report internal labor usage Report external labor usage
Equipment Application

Insert equipment record Move/modify equipmentmove between non-inventory type locations Move/modify equipmentmove to inventory-type location
Operating Locations Application

Insert operating location record Insert repair or salvage location record
52
Financial Processes
Inventory Control Application

Insert item/location record Duplicate record Add item to storeroom Add storeroom location Adjust current balance Adjust physical count Reconcile balances Adjust standard cost Adjust average cost Adjust capitalized cost Reorder items Issue an item (via option) Return an item (via option) Transfer an item (via option)
Issues and Transfers Application

Issue an item Return an item Transfer out Transfer in Material Receipt, Internal Report metered material usage against a work order
Preventive Maintenance Application

Insert preventive maintenance record Insert work order
53
Chapter 4
Work Orders Applications

Insert work order Report actual material usage Report actual labor usage Report actual tool usage Move/modify equipment
Purchase Requisitions Application

Insert external PR record Insert internal PR record Insert PR line item record Move/modify equipment
Purchase Orders Application

Insert external, blanket/pricing agreement, release PO record Insert internal PO record Insert PO line item record Approve PO record Material receipt, external, into storeroom Material receipt, external, issue on receipt Material receipt, internal Service receipt Move/modify equipment
Invoices Application

Insert invoice Insert invoice line Distribute costs Approve invoice
54
Financial Processes
NOTE: Processes that result in debit/credit transactions use decimal fields and amount (cost) fields. To minimize the effects of rounding in calculations, we suggest using Database Configuration to set the scale (the number of places calculated and displayed to the right of the decimal point) of these fields to six or more places. In order to have a process assign a default code to a particular account, you must first establish the default code in Chart of Accounts. For example, inserting a company record for a vendor would normally cause a default code to be assigned to the RBNI account. In order for the assignment to occur, however, you must first establish which code should be used for the RBNI account for vendors. Use the Chart of Accounts application (Company-Related Accounts option) to establish this vendor RBNI code. See the Chart of Accounts chapter in the MAXIMO 4i System Administrators Guide and the Chart of Accounts online Help for more information about establishing accounts. If you wish to overwrite the default code for an account, you must first have authorization. See the Authorizing GL Component Access section in Chapter 1 of the MAXIMO 4i Finance Managers Guide for more information. Even if you have authorization to edit account codes, you may need to unhide the field in the relevant application. For example, suppose that for a certain labor record, you want to use a code other than the default for the GL account. To overwrite the default account code, you must first unhide the GL account field in the Labor application. For information on how to unhide fields, see the Object Nationalizer Screen Editor chapter in the MAXIMO 4i System Administrators Guide. Certain processes result either in the formation or in the use of a merged account code, composed of components of one or more existing accounts. For example, reporting labor usage against a work order usually results in a debit to a merged account. The sources of the merged account are the labor GL account and the work order GL account. This particular merge occurs because both the labor GL account and the work order GL account are usually only partially specified. For
55
Chapter 4
example, the labor GL account is ????-???-300, and the work order GL is 6000300-???. Thus, the debit account for labor usage is 6000-300-300. If, however, these two accounts both had the second component specified, then the second component of one account code must take precedence over the second component of the other account code. In MAXIMO, there are rules about which accounts take precedence over others. Thus, for the relevant processes, we show a table with a numbered list of source accounts. For these processes, the account with the lower number takes precedence over the account with the higher number. For example, in the process Report Internal Labor Usage, the sources of the debit and credit accounts are shown in a table as follows:
Source of GL Code
1. Labor GL account (resource code) 2. Work order GL account 3. Equipment GL account 4. Operating location GL account
Debit
$15.00 x 2 = $30.00
Credit
$15.00 x 2 = $30.00
Source of GL Code
Labor control account
On the debit side, there are four accounts listed. Of these four, the labor GL account has the highest priority, the work order GL account has second priority, the equipment GL account has third priority, and the operating location GL account has the lowest priority. The merge order of the debit account components for this particular process illustrates a general rule. If a financial transaction involving a resource is
56
Financial Processes
charged to a work order, a piece of equipment, or an operating location, then the components of the relevant GL accounts merge with the following priority: 1. Resource GL account (resource code) 2. Work order GL account 3. Equipment GL account 4. Operating location GL account.
! Example
Purchase a bearing to be charged to work order 1020. Work order 1020 is to repair a forklift in the shipping and receiving department. The item resource code for a bearing is ????-???-200. The work order GL account for work order 1020 is ????-301-201. The forklift has no specified GL account. The location GL account for shipping and receiving is 6500-300???. The resulting debit GL account for the transaction is 6500-301-200. The first component is specified for only the location GL (6500). The second component is specified both in the work order GL (301) and the location GL (300), and the work order GL takes priority. The third component is specified both in the item resource code (200) and in the work order GL (201), and the item resource code takes priority.
Note that a merge between account codes may result in an account code that is not established in Chart of Accounts. In that case, an error message appears and you cannot complete the current transaction. If your company intends to use the merged account code, then an authorized user can establish the account code in Chart of Accounts. Then, you can proceed with the attempted transaction. In contrast, if your company does not use the merged account code, you need to make sure that you are attempting a valid transaction.
57
Chapter 4
COMPANIES APPLICATION Process: Insert Company Record

When you insert, update, or delete a company record, no general ledger transactions result. However, when you insert a company record, you can establish the default GL accounts associated with the company. These are the accounts that will be used in financial transactions involving the company, unless the account codes are changed prior to the time the financial transaction is recorded. In Chart of Accounts, for each company type (e.g., manufacturer), you can assign three different accounts:

RBNI (received but not invoiced account) AP suspense (accounts payable suspense account) AP control (accounts payable control account)
In order to have an account default, you must first assign the intended account code to a company type. To assign account codes to particular accounts, use the Chart of Accounts application. See the Chart of Accounts chapter in the MAXIMO 4i System Administrators Guide and the Chart of Accounts online Help. Once you have assigned the account code to a company type, to produce the default company-related accounts, you must specify the company type in the Company Type field in the Companies application. For example, suppose that you want to insert a manufacturing company so that the RBNI account defaults. You must first assign an account code (e.g., 1234567-890) to the RBNI account for companies of type manufacturer. Then, when entering the company record, you must type an M in the Company Type field. If your default company-related accounts vary by company type, then changing the company type causes the company default accounts to change. For example,
58
Financial Processes
suppose that the RBNI account for manufacturers is 1234-567-890 and the RBNI account for vendors is 1234-567-999. You deal with a company named ACME, which you have classified as a manufacturer. If you change ACMEs company type from manufacturer to vendor, then ACMEs default RBNI account changes from 1234-567-890 to 1234-567-999. If, for a specific company, you want to use an account code other than the default, an authorized user can overwrite the account code. Simply type in the desired account code in the appropriate field in the Companies application, either before or after you initially save the company record.
Process: Insert Company Location Record

When you save a new company record, you can create an associated company location record. Defining a company as a location allows you to track inventory items that are located at that company. Items in inventory, including rotating equipment, may be transferred from your companys site when couriers transport them or when vendors repair them. To create a company location record, use the Select Location option to display the Select Location dialog box in Companies (you can also use this dialog box in Operating Locations). When you create a company location record, you can specify a GL account (the charge account), an inventory control account, and/or a shrinkage cost account for the company location record. For a vendor location, you usually specify only the GL account. For a courier location, you usually specify only the inventory control account. Alternatively, if you want to use a storeroom as a vendor on an internal PO, then the storeroom location needs to be defined as a company.
59
Chapter 4
TOOLS APPLICATION
When you insert, update, or delete a tool record, no general ledger transactions result. However, when you insert a tool record, you can have up to two types of accounts default. First, however, you must set up default codes in Chart of Accounts. The first tools-related account type that you can establish in Chart of Accounts is the tools GL account (tool resource code). To establish this account, under the Resource Code option, select Tool Resource Codes. The Tool Resource Codes dialog box will appear, so that you can assign codes corresponding to two cases: Outside? = N and Outside? = Y. The code that you assign to Outside? = N becomes the default for the internal tools GL account, whereas the code that you assign to Outside? = Y becomes the default for the external tools GL account. The second tools-related account type that you can establish is the tools control account. To establish the default for this account, select either Internal Tools Control Accounts or External Tools Control Accounts, under the Resource Control Accounts option. The internal tools control accounts correspond to records for which Outside? = N, whereas the external tools control accounts correspond to records for which Outside? = Y. Using the External Tools Control Account dialog box, you can assign a default code corresponding to each vendor. For more information on establishing accounts using Chart of Accounts, see the Chart of Accounts chapter in the MAXIMO 4i System Administrators Guide and the Chart of Accounts online Help.
Process: Insert Internal Tool Record

An internal tool record is a tool record for which Outside? = N. When you enter a new internal tool record in the Tools application, you can have both the internal tools control account code and the GL account (tool resource) code default. However, you must first set up default codes in Chart of Accounts. See the first two paragraphs of the Tools Application section for more information about establishing these account codes.
60
Financial Processes
If, for a particular tool record, you change Outside? from N to Y, then the tool record changes from an internal tool record to an external tool record. Thus, the default GL account (tool resource code) changes. An authorized user can edit the GL account code and/or the control account directly in the Tools application, making the accounts tool-specific. To use the Tools application to edit the accounts, you must first unhide the GL account fields in the Tools application. Make sure, however, that you first establish this edited code as a valid account code in Chart of Accounts. The specified components (usually only the resource component) of the tools GL account are used to create the debit GL account for tool usage. If the tools GL account is not fully specified, the debit GL account will be the result of a merge with another account (e.g., the work order GL account). The internal tools control account is the default credit account for issue or for use of internal tools.
Process: Insert External Tool Record

An external tool record is a tool record for which Outside? = Y. When you enter a new external tool record in the Tools application, you can have both the external tools control account code and the GL account (tool resource) code default. However, you must first set up default codes in Chart of Accounts. See the first two paragraphs of the Tools Application section for more information about establishing these account codes. If you enter a vendor in the Tools application, the external tools control account defaults to the code associated with that vendor. Thus, if you change the vendor, then the default tools control account changes. If you enter a vendor with no associated default tools control account, then the vendor is added to the table of tools control accounts within Chart of Accounts. However, you still need to assign a tools control account code to the vendor.
61
Chapter 4
Furthermore, if, for a particular tool record, you change Outside? from Y to N, then the tool record changes from an external tool record to an internal tool record. Thus, the default GL account (tool resource code) changes. An authorized user can edit the GL account code and/or the control account directly in the Tools application, making the accounts tool-specific. To use the Tools application to edit the accounts, you must first unhide the GL account fields in the Tools application. Make sure, however, that you first establish this edited code as a valid account code in Chart of Accounts. The specified components (usually only the resource component) of the tools GL account are used to create the debit GL account for tool usage. If the tools GL account is not fully specified, the debit GL account will be the result of a merge with another account (e.g., the work order GL account). The external tools control account is the default credit account for issue or for use of external tools.
LABOR APPLICATION
When you insert, update or delete a labor record, no general ledger transactions result. However, when you insert a labor record, you can have up to two types of accounts default. First, however, you must set up default codes in Chart of Accounts. The first labor-related account type that you can establish in Chart of Accounts is the labor GL account (labor resource code). To establish this account, under the Resource Code option, select Labor Resource Codes. The Labor Resource Codes dialog box will appear, so that you can assign codes corresponding to two cases: Outside? = N and Outside? = Y. The code that you assign to Outside? = N becomes the default for the internal labor GL account, whereas the code that you assign to Outside? = Y becomes the default for the external labor GL account. The second labor-related account type that you can establish is the labor control account. To establish the default for this account, select either Internal Labor
62
Financial Processes
Control Accounts or External Labor Control Accounts, under the Resource Control Accounts option. The internal labor control accounts correspond to records for which Outside? = N, whereas the external labor control accounts correspond to records for which Outside? = Y. Using the Internal Labor Control Account dialog box, you can assign a default code corresponding to each work location. Using the External Labor Control Account dialog box, you can assign a default code corresponding to each vendor that provides labor. For more information on establishing accounts using Chart of Accounts, see the Chart of Accounts chapter in the MAXIMO 4i System Administrators Guide and the Chart of Accounts online Help.
Process: Insert Internal Labor Record

An internal labor record is a labor record for which Outside? = N. When you enter a new internal labor record in the Labor application, you can have both the internal labor control account code and the GL account (labor resource) code default. However, you must first set up default codes in Chart of Accounts. See the first two paragraphs of the Labor Application section for more information about establishing these account codes. If you enter a work location in the Labor application, then the internal labor control account defaults to the code associated with that location. Thus, if you change the work location, then the default internal labor control account changes. If you enter a work location with no associated default labor control account, then the location is added to the table of labor control accounts within Chart of Accounts. However, you still need to assign a labor control account to the location. Furthermore, if, for a particular labor record, you change Outside? from N to Y, then the labor record changes from an internal labor record to an external labor record. Thus, the default GL account (labor resource code) changes. An authorized user can edit the GL account code and/or the control account directly in the Labor application, making the accounts labor-specific. To use the
63
Chapter 4
Labor application to edit the accounts, you must first unhide the GL account fields in the Labor application. Make sure, however, that you first establish this edited code as a valid account code in Chart of Accounts. The specified components (usually only the resource component) of the labor GL account are used to create the debit GL account for labor usage. If the labor GL account is not fully specified, the debit GL account will be the result of a merge with another account (e.g., the work order GL account). The internal labor control account is the default credit account for issue or for use of internal labor. NOTE: Inserting a craft record is done via the Crafts application. Inserting a craft record is similar to inserting a labor record. Moreover, the inserted craft is recorded in the Labor database table. However, in contrast to inserting a labor record, inserting a craft record causes no GL accounts to default. Thus, if you want to associate a labor resource code and/or a labor control account specifically with a craft record, you must first unhide the account code fields in the Crafts application. Then, manually enter the desired accounts in the fields. Note, however, that when you insert a labor record belonging to that craft, the GL and control accounts still default as described in the preceding paragraphs (i.e., they do not take on the codes specified in the Crafts application).
Process: Insert External Labor Record

An external labor record is a labor record for which Outside? = Y. When you enter a new external labor record in the Labor application, you can have both the external labor control account code and the GL account (labor resource) code default. However, you must first set up default codes in Chart of Accounts. See the first two paragraphs of the Labor Application section for more information about establishing these account codes.
64
Financial Processes
If you enter a vendor, the external labor control account defaults to the code associated with that vendor. Thus, if you change the vendor, then the default labor control account changes. If you enter a vendor with no associated default labor control account, then the vendor is added to the table of labor control accounts within Chart of Accounts. However, you still need to assign a labor control account to the vendor. Furthermore, if, for a particular labor record, you change Outside? from Y to N, then the labor record changes from an external labor record to an internal labor record. Thus, the default GL account (labor resource code) changes. An authorized user can edit the GL account code and/or the control account directly in the Labor application, making the accounts labor-specific. To use the Labor application to edit the accounts, you must first unhide the GL account fields in the Labor application. Make sure, however, that you first establish this edited code as a valid account code in Chart of Accounts. The specified components (usually only the resource component) of the labor GL account are used to create the debit GL account for labor usage. If the labor GL account is not fully specified, the debit GL account will be the result of a merge with another account (e.g., the work order GL account). The external labor control account is the default credit account for issue or for use of external labor.
Process: Insert Labor Location Record

When you save a new labor record (either internal or external), you can create an associated labor location record. By creating the labor location record, you can track inventory while it is transported by a worker. You create a labor location record via the Select Location dialog box in the Labor application (you can also use this dialog box in Operating Locations). When you do so, you can specify a GL account (the charge account), an
65
Chapter 4
inventory control account, and/or a shrinkage cost account for the labor location record. For a labor location record, you usually specify only the inventory control account.
LABOR REPORTING APPLICATION Process: Report Internal Labor Usage

You report actual labor usage in the Labor Reporting application. You can also report internal labor usage on the Labor subtab on the Actuals tab in Work Order Tracking. The recorded transaction is the same in each case. (The only difference is that the default GL account and control account used for internal labor usage transactions usually differ from the default GL account and control account for external labor usage transactions.) The Labor Reporting application allows you to report actual labor usage, and to see the transaction records of previously reported actual labor usage, whether reported via this application or via the Labor subtab on the Actuals tab in Work Order Tracking. The Debit GL Account field and the Credit GL Account field are editable when reporting labor usage, prior to using Save. All fields are readonly once the transaction is recorded. The GL fields default in the same manner for all three work types: WORK, NON-WORK, and OT-REF. WORK includes TRAV and WMATL; NONWORK includes SICK and VAC. In order to report usage of type WORK, you must enter a debit GL account, a work order number, an equipment number, or an operating location. In the cases of NON-WORK and OT-REF, it is possible to report usage without entering any of the four. If you do not enter a work order number, equipment number, or location, the Debit GL Account field does not default to anything. In such cases,
66
Financial Processes
you would typically want to manually enter a code in the Debit GL Account field. NOTE: Any MAXIMO transaction that does not have both a debit account and a credit account is ignored by the APIs and is not passed to the external financial system.
Primary Transaction
On reporting actual labor usage, at Save, the MAXIMO LABTRANS table has a record added, type WORK (or a synonym). The financial period for the transaction is determined by the date/time in the Enter Date field in the table window, which defaults to the system date/time.
! Example
Joe Jones, 2 hours, at $15.00 per hour.
Source of GL Code
1. Internal labor GL account (resource code) 2. Work order GL account 3. Equipment GL account 4. Operating location GL account
Debit
$15.00 x 2 = $30.00
Credit
$15.00 x 2 = $30.00
Source of GL Code
Internal labor control account of work location
GL sources are listed in order of priority. For example, the labor resource account code would override any defined segment in the same position of the work order GL account, which would override the equipment GL account, if
67
Chapter 4
present, which would override any segment(s) in the same position from the locations GL account. NOTE: The craft control account code does not default to any value, but you can specify it by unhiding the Control Account field in the Crafts application.
! Example
Mechanic, 2 hours, at $15.00 per hour.
Source of GL Code
1. Craft GL account (resource code)* 2. Work order GL account 3. Equipment GL account
Debit
$15.00 x 2 = $30.00
Credit
$15.00 x 2 = $30.00
Source of GL Code
Craft control account*
4. Operating
location GL account
* Only if it has been manually entered in the Crafts application; otherwise, no default. NOTE: Any MAXIMO transaction that does not have both a debit account and a credit account is ignored by the APIs and is not passed to the external financial system.
Process: Report External Labor Usage

Reporting external labor usage works like reporting internal labor usage, described above.
68
Financial Processes
On reporting actual labor usage, at Save, the MAXIMO LABTRANS table has a record added, type WORK (or a synonym). The financial period for the transaction is determined by the date/time in the Enter Date field in the table window, which defaults to the system date/time.
! Example 1 Bill Smith, 2 hours, at $15.00 per hour. Bills services are provided by a
vendor.
Source of GL Code
1. External labor GL account (resource code) 2. Work order GL account 3. Equipment GL account 4. Operating location GL account
Debit
$15.00 x 2 = $30.00
Credit
$15.00 x 2 = $30.00
Source of GL Code
External labor control account for the vendor
! Example 2 As above, Bill Smith, 2 hours, at $15.00 per hour. Bills services are
provided by a vendor, but in this example there is an outstanding purchase order for those services.
69
Chapter 4
Source of GL Code
1. External labor GL account (resource code) 2. Work order GL account 3. Equipment GL account 4. Operating location GL account
.
Debit
$15.00 x 2 = $30.00
Credit
$15.00 x 2 = $30.00
Source of GL Code
Purchase Order lines debit GL account.
It is assumed that the purchase orders Debit GL account for the external service order is a temporary charge account; receipt of the service in Labor Reporting, therefore, clears the charge in the temporary account and charges the correct debit account.
GL sources are listed in order of priority. For example, the labor resource account code would override any defined segment in the same position of the work order GL account, which would override the equipment GL account, if present, which would override any segment(s) in the same position from the locations GL account. NOTE: Any MAXIMO transaction that does not have both a debit account and a credit account is ignored by the APIs and is not passed to the external financial system.
70
Financial Processes
EQUIPMENT APPLICATION Process: Insert Equipment Record

Equipment records are inserted via the Equipment application. Through the Purchase Orders application, equipment records for newly received rotating equipment can be inserted via the Enter Equipment Identifiers dialog box displayed from the Purchase Orders Material Receipts tab at the time of receipt of the rotating equipment. At the time of insertion of the equipment record (or later, if you want), it is possible to specify a GL account code for the equipment record. To do so, you need to unhide the GL Account field in the Equipment application. (If adding new rotating equipment records through Purchase Orders, it is possible to specify the GL account for the equipment in the Enter Equipment Identifiers dialog box.) NOTE: In general, we recommend specifying GL accounts for operating locations and not for equipment. Work done on equipment is then charged to the GL account of the operating location the equipment is in. If you want to charge the cost of work to the equipment regardless of its location, you can specify a GL account for the equipment. The accounts are merged in transactions; account segments specified on the equipment record will override any GL account segments of the operating location that are in the same position when they are merged on a work order, issue on receipt purchase, etc.
Process: Move/Modify Equipment

You can complete this process via the Move/Modify Equipment dialog box in Equipment, in Purchasing, or in Work Orders. Moving equipment between nonstoreroom locations (e.g., between operating locations, or from an operating location to repair) has no financial implications in MAXIMO; an equipment move transaction is recorded, with validated GL accounts listed. Moving rotating
71
Chapter 4
equipment from a non-storeroom location to an inventory-type location does have financial implications; both an equipment move transaction and a financial transaction are recorded.
Moving Equipment Between Operating or Other Non-Storeroom Locations

When you move a piece of equipment, there are no resulting general ledger financial transactions, and no GL account fields are changed on equipment or location records. However, when you enter the new location in the Move/Modify dialog box, if you have defined an equipment GL account, MAXIMO performs a preliminary account validation. More specifically, MAXIMO checks to see if a merger of the equipments GL account and the GL account of the new location would produce a valid account code. For example, if the equipment GL account is ????-300-200 and the destination location GL account is 6002-302-???, then MAXIMO checks to see if 6002-302-200 is a valid account. If so, the move can be made. Thus, the validated account codes are stored with the record of the transaction, which can be viewed in the View Equipment History dialog box. If a merge between the equipment GL account and the location GL account of the destination does not produce a valid account, then entering the destination location in the Move/Modify dialog box produces an error message. Using the example from the previous paragraph, suppose that 6002-302-200 is not a valid account. Then, the first line of the error message would read, GL account 6002302-200 is invalid. The message would show the source account codes (e.g., 6002-302-??? and ????-300-200) that merged into the invalid account code. As stated in the error message, you can proceed with the move by changing one of the account codes so that the merge is valid. Alternatively, an authorized user can establish the currently invalid account code as a valid account code in Chart of Accounts. On the Move/Modify dialog box, and in the record of the equipment transaction (note that this is not a financial transaction), the old merged GL account (e.g., of equipment/from location) is shown in the Credit GL Account field, and the new merged GL account (e.g., of equipment/to location) is shown in the Debit GL
72
Financial Processes
Account field. You cannot modify either the credit or debit account before you move the equipment. NOTE: Any GL account that might have been associated with the equipment by unhiding the GL Account field on the equipment record is not changed, credited, or debited in a standard move transaction. If the equipment is rotating equipment and has an associated rotating suspense account, there is also no effect on that account when equipment is moved, except when the rotating equipment is moved to a storeroom (see below).
Moving Rotating Equipment From a Non-Storeroom Location to a Storeroom or Other Inventory Control-Type Location
Moving a piece of rotating equipment from a non-storeroom location to a storeroom or other inventory-type location (labor, courier) creates two transactions: 1) an equipment move transaction, as specified above; 2) a financial transactionan inventory material receipt transaction, TRANSFER written to the MATRECTRANS table. Note that the equipment move transaction shows, in the Debit GL Account field, the merge of the equipments GL account (if any) and the storeroom locations GL account. The move transaction shows, in the Credit GL Account field, the merge of the equipments GL account and the from locations GL account. The financial transaction uses the storeroom locations control account as the debit account and the rotating suspense account for the credit account.
Primary Transaction
When you choose OK in the Move/Modify Equipment dialog box, the Specify GL Accounts for Move to an Inventory Location dialog box appears. Thus, the box both displays and allows you to overwrite the default debit and credit GL accounts for the move transaction. The default is to debit the control account of the storeroom and credit the rotating equipments rotating suspense account.
73
Chapter 4
Choose OK to create both transactions: the equipment move transaction and the storerooms material receipt transaction. The financial period for the transaction is determined by the date/time in the Change Date field in the Move/Modify Equipment dialog box, which defaults to the system date/time.
! Example
Move a piece of rotating equipment, equipment #11430, from its current operating location to the central storeroom.
Source of GL Code
Inventory control account
Debit
$150.00 *
Credit
$150.00 *
Source of GL Code
Rotating suspense account
* The amount of the transaction will be zero if no charges have been applied to the equipment. The charges against the rotating equipment are carried in the equipments rotating suspense account. At the time of the move, the storeroom control account is debited the amount carried in the rotating suspense account, and the rotating suspense account is credited.
OPERATING LOCATIONS APPLICATION Process: Insert Operating Location Record

Operating locations are inserted via the Operating Locations application. You can specify a GL account for the operating location at the time of record entry, or at a later time. The GL account is used as the debit account for work done on equipment in that location, for items or services purchased directly for that location, etc.
74
Financial Processes
NOTE: In general, we recommend specifying GL accounts for operating locations and not for equipment. Work done on equipment is then charged to the GL account of the operating location the equipment is in. If you want to charge the cost of work to the equipment regardless of its location, you can specify a GL account for the equipmentthat account will override the GL account of the operating location on a work order, issue-on-receipt purchase, etc.
Process: Insert Repair or Salvage Location Record

Repair and salvage locations can only be inserted via the Select Location dialog box available in the Operating Locations application. You can specify a GL account for the repair or salvage location at the time you insert the record. The GL account is used as the charge account when the repair or salvage location is the destination for a cost transaction such as a work order or an issue-on-receipt purchase order. Ordinarily, you do not specify an Inventory Control account or a Shrinkage Cost account for the associated repair or salvage location. NOTE: You can also insert labor and company locations via the Select Location dialog box in Operating Locations. These processes are similar to the process of inserting repair or salvage locations. See Insert Company Location Record on page 59 and Insert Labor Location Record on page 65.
INVENTORY CONTROL APPLICATION Process: Insert Item/Location Record

You can insert new item/location records by using the Insert menu in the Inventory Control application. You can also insert item/location records by either of the processes Duplicate Record (page 77) or Add Item to Storeroom (page 77).
75
Chapter 4
When you save the new item/location record, MAXIMO writes a transaction with TRANSTYPE = INSERTITEM to the INVTRANS table.
! Example
Insert an item (e.g., a bearing) into the central storeroom. Specify the standard cost of the bearing as $0.50 and the current balance as 35.
Source of GL Code
Inventory control account for Central storeroom
Debit
$0.00 $0.00
Credit
Source of GL Code
Inventory control account for Central storeroom
NOTE: Note that both the debit and credit accounts are the same account. Furthermore, the line cost is zero, not 35 x $0.50 = $17.50. Thus, this transaction has no monetary effect on the general ledger. If you fill the Location field in the Inventory Control application, then the inventory control account, the shrinkage cost account and the inventory cost adjustment account are assigned the default account codes for that location, as defined in Chart of Accounts. However, if you leave the Location field blank, then no GL accounts will default. Thus, inserting an item master record, with only the item identifier and no location, produces no default account codes. NOTE: Even if Capitalized? = Y upon insertion of the item, the inventory control account, the shrinkage cost account and the inventory cost adjustment account for the storeroom are filled with the defaults (i.e., are not blank). Thus, when inserting an item that you want to be capitalized, we recommend that you (1) set Capitalized? to N on insertion and then (2) use the Adjust Capitalized Cost option to change Capitalized? to Y. If you have already inserted items for which Capitalized? = Y upon insertion, note that the default debit account for a purchase will be inventory control. (Furthermore, the default line cost will be non-zero). Thus, if you want the debit account to be the
76
Financial Processes
capital GL account, you will need to overwrite the GL debit account on the PR or PO line. The GL account code will be defaulted to the inventory resource code for that item type, as defined in Chart of Accounts. NOTE: If you add a new item type (e.g., WIDGETS) to the value list, you must assign the item type to a specific item (e.g., item 1002) before you can assign a default GL code to WIDGETS. If there is no item with item type WIDGETS, WIDGETS will not show up as an inventory resource code in Chart of Accounts. The inventory control, shrinkage cost, inventory cost adjustment and GL accounts can be edited on the item/location record, so that you can make the accounts item/location-specific. You need to unhide the GL account fields in the Inventory Control application in order to do so.
Process: Duplicate Record

Duplicate an inventory record by bringing up an existing item record, going to the Insert menu and selecting Duplicate Item. The Duplicate Item process creates the same default GL accounts created by the Insert Item/Location Record process.
Process: Add Item to Storeroom Location

Addition of items to storeroom locations is done via the Add Item to Storeroom Location option in Inventory Control. The Add Item to Storeroom Location process creates the same default GL accounts created by the Insert Item/Location Record process.
77
Chapter 4
Process: Add Storeroom Location

To add storeroom locations, use the Add Storeroom Location option in Inventory Control. Via the Add Storeroom Location dialog box, the authorized user can specify the default inventory control account, receipts price variance account, invoice price variance account, shrinkage cost account, inventory cost adjustment account, currency variance account, and purchase variance account for the new storeroom location. Be sure to specify account codes that are defined in Chart of Accounts, because pressing the Save button results in validation of the specified accounts. Furthermore, all accounts listed on the dialog box must be either fully specified or left blank. See the Database Configuration chapter (GL Account Configuration section) in the MAXIMO 4i System Administrators Guide. MAXIMO records the insertion of the storeroom in the LOCATIONS table. The Add Storeroom Location process creates no general ledger transactions, but does assign the accounts you specify to the new location. For example, if you create a storeroom location called WEST, then by completing the Inventory Control Account field in the Add Storeroom Location dialog box, you establish the default inventory control account for items added to the WEST storeroom. NOTE: If, when MAXIMO asks, you choose to add the storeroom as an internal vendor, the storeroom will also be added to the COMPANIES table. This step will neither create general ledger transactions nor establish additional accounts (i.e, AP Control, RBNI, and Suspense fields will be blank in the associated Companies application). Furthermore, the Company Type field will be blank, because this process transaction assigns no company type to the storeroom.
Process: Adjust Current Balance

This process is done via the Adjust Current Balance option in Inventory Control; choosing the Reconcile Balances option, discussed below, also creates a current
78
Financial Processes
balance adjustment. In the Adjust Current Balance dialog box, both the Control GL Account field and the Shrinkage GL Account field display their respective default account codes, as defined for that item/location. For example, if you are adjusting the current balance of an item in the central storeroom, then the Control GL Account field defaults to the Inventory Control Account for that item, in the central storeroom. As discussed in Chapter 5 of the MAXIMO 4i Finance Managers Guide, the INVENTORY table is the primary source of the default codes both for the inventory control account and for the shrinkage GL account. The financial period for the transaction is determined by the system date/time. When you choose OK on the dialog box, a CURBALADJ (current balance adjustment) transaction is written to the INVTRANS table.
! Example
Adjust the current balance of a bearing. The default issue cost in Application Setup is set to average, and the bearing is currently in inventory at average cost of $22.00. Both the physical count and current balance are shown as 4, but you know that the current balance is actually 3.
Source of GL Code
Debit
(3-4) x $22.00 = -$22.00
Credit
(3-4) x $22.00 = -$22.00
Source of GL Code
Shrinkage cost account
NOTE: If the item is capitalized, then the default debit account is the capital GL account, the default credit account is blank, and the line cost is zero. If the credit account is blank, then the transaction is ignored by the APIs. See Adjust Capitalized Cost Value From N to Y on page 83 for more information.
79
Chapter 4
Process: Adjust Physical Count

This process is done via the Adjust Physical Count option in Inventory Control. When you choose OK on the Adjust Physical Count dialog box, a PCOUNTADJ (physical count adjustment) transaction is written to the INVTRANS table.
! Example
Adjust the physical count of a bearing, currently in inventory at last, standard, and average cost of $22.00. The physical count is shown as 4, but the new physical count is 2.
Source of GL Code
Debit
(2-4) x $22.00 = -$44.00
Credit
(2-4) x $22.00 = -$44.00
Source of GL Code
NOTE: The adjust physical count process produces no net effect on any account in the GL. The net effect occurs only when the reconcile balances process (described below) is completed.
Process: Reconcile Balances

This process sets the current balance equal to the physical count plus or minus any transactions that occur between the physical count and reconciliation. Reconciling balances is done via the Reconcile Balances action in Inventory Control. From a GL account perspective, the reconcile balances process is similar to the Adjust Current Balances process. In the Reconcile Balances dialog box, both the Control GL Account field and the Shrinkage GL Account field display their respective default account codes, as defined for that item/location. For example, if you are reconciling the current balance of an item in the central storeroom, then the Control GL Account field defaults to the inventory control account for that item, in the central storeroom. As discussed in Chapter 5 of the MAXIMO 4i Finance Managers Guide, the INVENTORY table is the primary
80
Financial Processes
source of the default codes both for the inventory control account and for the shrinkage GL account. The financial period for the transaction is determined by the system date/time. When you choose OK on the Reconcile Balances dialog box, a CURBALADJ (current balance adjustment) transaction is written to the INVTRANS table.
! Example
Reconcile the current balance of a bearing, currently in inventory at last, standard, and average cost of $22.00. The physical count is 2, but the current balance is initially shown as 3.
Source of GL Code
Debit
(2-3) x $22.00 = -$22.00
Credit
(2-3) x $22.00 = -$22.00
Source of GL Code
NOTE: If the item is capitalized, then the default debit account is the capital GL account, the default credit account is blank, and the line cost is zero. If the credit account is blank, then the transaction is ignored by the APIs. See Adjust Capitalized Cost Value From N to Y on page 83 for more information.
Process: Adjust Standard Cost

This process is done via the Adjust Standard Cost option in Inventory Control. In the Adjust Standard Cost dialog box, both the Control GL Account field and the Cost Adjustment GL Account field display their respective default account codes, as defined for that item/location. For example, if you are adjusting the standard cost for an item in the central storeroom, then the control GL account will default to the inventory control account for the central storeroom. As discussed in Chapter 5 of the MAXIMO 4i Finance Managers Guide, the
81
Chapter 4
INVENTORY table is the primary source of the default code for the inventory control account. The financial period for the transaction is determined by the system date/time. When you choose OK on the Adjust Standard Cost dialog box, a STDCSTADJ (standard cost adjustment) transaction is written to the INVTRANS table. NOTE: You should only use the Adjust Standard Cost option if you are using standard costing.
! Example
Adjust the standard cost of a bearing from $22.00 to $25.00. The current balance of the item is 2.
Source of GL Code
Debit
($25.00-$22.00) x 2= $6.00
Credit
($25.00-$22.00) x 2 = $6.00
Source of GL Code
Inventory cost adjustment account
NOTE: If the item is capitalized, then the standard cost is zero, and you cannot select the Adjust Standard Cost option.
Process: Adjust Average Cost

This process is done via the Adjust Average Cost option in Inventory Control. In the Adjust Average Cost dialog box, both the Control GL Account field and the Cost Adjustment GL Account field display their respective default account codes, as defined for that item/location. For example, if you are adjusting the average cost for an item in the central storeroom, then the Control GL Account field will default to the inventory control account for the central storeroom. As discussed in Chapter 5 of the MAXIMO 4i Finance Managers Guide, the INVENTORY table is the primary source of the default code for the inventory control account.
82
Financial Processes
The financial period for the transaction is determined by the system date/time. When you choose OK on the Adjust Average Cost dialog box, a AVGCSTADJ (average cost adjustment) transaction is written to the INVTRANS table.
! Example
Adjust the average cost of a bearing from $22.00 to $25.00. The current balance of the item is 2.
Source of GL Code
Debit
($25.00-$22.00) x 2 = $6.00
Credit
($25.00-$22.00) x 2 = $6.00
Source of GL Code
Inventory cost adjustment account
NOTE: If the item is capitalized, then the average cost is zero, and you cannot select the adjust average cost option.
Process: Adjust Capitalized Cost Value From N to Y

To change the Capitalized? field value from N to Y, use the Adjust Capitalized Cost option in Inventory Control. On the Adjust Capitalized Cost dialog box, you need to manually enter an account code that is to be used as the capital GL account; no default capital GL account is provided by MAXIMO. The Capitalized? field value will change to N for all storerooms that contain the item. Furthermore, the average, last, and standard costs for the item change to zero in all storerooms. The financial period for the transaction is determined by the system date/time.
Primary Transactions
When you choose OK on the dialog box, the account code you manually entered in the Capital GL Account field is associated with the item, for all storerooms containing the item. Thus, in the INVENTORY table of the database, in the
83
Chapter 4
CONTROLACC column, for all storerooms containing the item, the capital GL account code replaces the inventory control account code. In effect, this transfers the charge or value associated with the item from the inventory control account to the capital account. On the Adjust Capitalized Cost dialog box, the Shrinkage GL Account field and the Cost Adj GL Account field are cleared. Thus, in the INVENTORY database table, in the row corresponding to the item, the SHRINKAGEACC and INVCOSTADJACC columns are blank. For each storeroom containing the item, a CAPCSTADJ (capitalized cost adjustment) transaction is written to the INVTRANS table.
! Example
A pump is currently in the central storeroom at last, standard, and average cost of $6400. The current balance of the pump in the central storeroom is 2. The same pump is in the garage storeroom at last, standard, and average cost of $6500. The current balance of the pump in the garage storeroom is 3. You change the Capitalized? field from N to Y for the pump. Since there are two storerooms that contain the pump, then two transactions appear in INVTRANS:
Source of GL Code
Manually entered capital GL account
Debit
2 x $6,400.00 = $12,800.00
Credit
2 x $6,400.00 = $12,800.00
Source of GL Code
Inventory control account of Central
Source of GL Code
Debit
3 x $6,500.00 = $19,500.00
Credit
3 x $6,500.00 = $19,500.00
Source of GL Code
Inventory control account of Garage
NOTE: You must manually enter a GL account code in the Adjust Capitalized Cost dialog box to be used as the capital GL account. This manually
84
Financial Processes
entered account code is used as the debit account for all resulting CAPCSTADJ transactions. Thus, if the Capital GL Account field is blank when you choose OK, and you have not configured the database to make the field required, then all resulting CAPCSTADJ transactions have a blank GLDEBITACCT column. Thus, no account code is written to the debit side of the transaction. The value of the transaction is determined by this formula: Line cost = Current Balance x Issue Cost where Issue Cost = Average Cost or Standard Cost, depending on the setting specified in Application Setup for Issue Cost.
! Example
A pump, with a current balance of 2, currently in one storeroom at last cost of $6200, standard cost of $6400, and average cost of $6300 has its Capitalized? field changed from N to Y. Average costing is in place (i.e., the Default Issue Cost is set to average in Application Setup).
Source of GL Code
Debit
2 x $6,300.00 = $12,600.00
Credit
2 x $6,300.00 = $12,600.00
Source of GL Code
NOTE: If standard costing were used, the value of the transaction would be $12,800, two times the standard cost of $6400.
Secondary Events
The values in the Standard Cost and Average Cost fields are set to zero; when the now-capitalized item is issued, it will be issued at zero cost. In the Inventory database table, both the shrinkage cost account and the inventory cost adjustment account are cleared. Thus, if you subsequently perform a transaction that results in a debit either to the shrinkage cost account
85
Chapter 4
or to the inventory cost adjustment account, then the GLDEBITACCT column is blank for that transaction. Similarly, if you perform a transaction that results in a credit either to the shrinkage cost account or to the inventory cost adjustment account, then the GLCREDITACCT column is blank for that transaction. NOTE: Any MAXIMO transaction that does not have both a debit account and a credit account is ignored by the APIs and is not passed to the external financial system. In the INVENTORY database table, the CONTROLACC column is filled with the capital GL account code. Thus, if you perform a transaction, such as a transfer, with the capitalized item, the account code you manually enter in the Capital GL Account field acts as the control account in the transaction.
! Example
When you capitalized a pump, you entered 7000-800-900 as the capital GL account code. Now, you transfer the capitalized pump from the central storeroom to the garage storeroom. If the pump were not capitalized, the debit account would be the inventory control account of the garage storeroom, and the credit account would be the inventory control account of the central storeroom. Since the pump is capitalized, the following transaction results.
Source of GL Code
7000-800-900 (Capital GL account)
Debit
$0.00 $0.00
Credit
Source of GL Code
7000-800-900 (Capital GL account)
Process: Adjust Capitalized Cost Value from Y to N

To change the Capitalized? field value from Y to N, use the Adjust Capitalized Cost option in Inventory Control. On the Adjust Capitalized Cost dialog box, you specify N as the new Capitalized? field value. This Capitalized? field value
86
Financial Processes
changes to N for all storerooms containing the item. The average, last and standard costs remain at zero for all storerooms. On the Adjust Capitalized Cost dialog box, the Control GL Account field defaults to the inventory control account for the storeroom showing on the screen. Thus, if the central storeroom is showing on the screen, and you bring up the Adjust Capitalized Cost dialog box, the Control GL Account field displays the inventory control account for the central storeroom. The Shrinkage GL Account field and the Cost Adjustment GL Account field default to their respective default account codes for the same storeroom location. These default account codes are established either via Chart of Accounts or via the Add Storeroom Location process. Although the dialog box displays the default accounts for only the storeroom currently showing on the screen, MAXIMO writes the correct default accounts for each storeroom containing the item to the database. See the Primary Transaction and Secondary Event sections below. On the Adjust Capitalized Cost dialog box, the Capital GL Account field is readonly for this transaction. The financial period for the transaction is determined by the system date/time.
Primary Transaction
When you choose OK on the Adjust Capitalized Cost dialog box, a CAPCSTADJ (capitalized cost adjustment) transaction is written to the INVTRANS database table for each storeroom containing the item. The line cost of the transaction from Y to N is always zero.
! Example
A capitalized pump is currently stocked both in the central storeroom and in the garage storeroom. Since the pump is capitalized, the last, standard, and average costs are equal to $0.00 in both storerooms. You change the Capitalized? field from Y to N for that pump.
87
Chapter 4
Since there are two storerooms that contain the pump, then two transactions appear in INVTRANS:
Source of GL Code
Inventory control account of Central
Debit
$0.00 $0.00
Credit
Source of GL Code
Capital GL account
Source of GL Code
Inventory control account of Garage
Debit
$0.00 $0.00
Credit
Source of GL Code
Capital GL account
NOTE: The capital GL account is the account you specified when you made the capitalized cost adjustment from N to Y. If the item was inserted as capitalized, then the credit account will be the same as the debit account, i.e., the inventory control account. To set the items issue cost to a non-zero value, you need to adjust the items issue cost. If you issue items at average cost, use the Adjust Average Cost option; if you issue items at standard cost, use the Adjust Standard Cost option. You need to adjust the cost on a storeroom-by-storeroom basis; thus, if you want the items cost to be non-zero in all storerooms, you must perform the adjustment for each storeroom containing the item.
Secondary Events
When the item becomes non-capitalized, the control, shrinkage, and inventory cost adjustment account codes default according to storeroom location. In the database, this event occurs in the INVENTORY table.
88
Financial Processes
Process: Reorder Items

This process is done via the Reorder Items option in Inventory Control. Settings specified in Application Setup determine whether the reorder process creates PRs or POs for the items being ordered. There are separate settings for internal PRs and POs and for external PRs and POs. For each PR and PO, you can specify the approval status at creation. See Application Setups online Help for more information. By using the Reorder Items option, you may create any or all of the following:

unapproved PRs approved PRs unapproved POs approved POs
MAXIMO handles the creation of these records just as it does when PRs and POs are created in the Purchasing module. GL account fields have defaults entered according to the rules specified in the discussion of the processes for creation of PRs and POs, later in this section. As with PRs and POs created in the Purchasing applications, with the exception of approved POs, you can manually overwrite the defaulted GL account codes.
Process: Issue an Item

In the Inventory Control application, issuing an item is done via the Issue Current Item option. You can also issue an item using either of the following processes:

Issue an Item in Issues and Transfers (page 97). Report Actual Material Usage in Work Orders (page 110), if issuing against a work order.
89
Chapter 4
NOTE: There are minor database differences among the various methods of issuing an item. For consistency of results, we recommend a policy of using Issues and Transfers as the standard way of issuing items. The financial period for the transaction is determined by the date/time in the Entered Date field on the Issue Current Item dialog box, which defaults to the system date/time. On Save, the MATUSETRANS table has a record added, ISSUETYPE = ISSUE.
90
Financial Processes
! Example
Issue 20 bearings at $0.50 (issue cost).
Source of GL Code
1. Inventory GL account (item resource code) 2. If issued to a work order " work order GL account 3. If issued to equipment " Equipment GL account GL account of equipments location 4. If issued to a location " If only one piece of equipment at location, equipment GL account Location GL account
Debit
20 x $0.50 = $10.00
Credit
20 x $0.50 = $10.00
Source of GL Code
NOTE: If the item is capitalized, then the default credit account is the capital GL account, and the line cost is zero. See Adjust Capitalized Cost Value From N to Y on page 83 for more information.
91
Chapter 4
There are minor differences in the data written to the MATUSETRANS table depending on whether you issue an item through Issue Current Item in Inventory Control or through Issues and Transfers. The affected columns are: LDKEY, METERREADING, METERREADING2, AND LINECOST2. The Differences in the MATUSETRANS table would be:
Column Name
LDKEY METERREADING METERREADING2 LINECOST2
Issues and Transfers

(NULL) (NULL) (NULL) (NULL)
Issue Current Item

0 0 0 0
92
Financial Processes
Process: Return an Item

In the Inventory Control application, returning an item is done via the Issue Current Item option. You can also return an item by using either of the following processes:

Return an Item in Issue and Transfers (page 99). Report Actual Material Usage in Work Orders (page 110), if returning against a work order.
NOTE: There are minor database differences among the various methods of returning an item. The principal differences are noted in the discussions. For consistency of results, we recommend a policy of using Issues and Transfers as the standard way of returning items. The financial period for the transaction is determined by the date/time in the Entered Date field on the Issue Current Item dialog box, which defaults to the system date/time.
Primary Transaction
On Save, the MATUSETRANS table has a record added, ISSUETYPE = RETURN.
93
Chapter 4
! Example
Return 4 bearings at $0.50 (issue cost).
Source of GL Code
Debit
4 x $0.50 = $2.00
Credit
4 x $0.50 = $2.00
Source of GL Code
1. Inventory GL account (item resource code) 2. If returned from a work order " work order GL account 3. If returned from equipment " Equipment GL account GL account of equipments location 4. If returned from a location " If only one piece of equipment at location, equipment GL account Location GL account
94
Financial Processes
NOTE: If the item is capitalized, then the default debit account is the capital GL account, and the line cost is zero. See Adjust Capitalized Cost Value From N to Y on page 83 for more information. In Inventory Control, unlike Issues and Transfers, you are not limited to a list of previously issued items and associated data. Thus, unless you want it changed, you must be careful to enter and to check the information for the return to make sure it corresponds to the information at the point of issue. For example, suppose that when an item was issued to a location in August, the debit account defaulted to 1111-111-111. When the fiscal year ends at the end of September, you decide to revamp the assignment of accounts to locations. In October, you return the item. Because of your changes to Chart of Accounts, the credit account defaults to 2222-111-111. If you want the credit account to match the debit account from the issue, you would need to replace the first component with 1111. Issue Current Item with Issue Type field reading RETURN in Inventory Control has other database differences with returning an item through Issues and Transfers. Entries into some columns in the database (besides the GL) differ for the same transaction, depending on whether you use Issue Current Item or Issues and Transfers. These columns include CURBAL, PHYSCNT, POLINENUM, CURRENCYUNITCOST, and CURRENCYLINECOST. These differences are exactly like the ones outlined above in the table for Issue an Item.
Process: Transfer an Item

In the Inventory Control application, transferring an item is done via the Transfer Current Item option. The financial period for the transaction is determined by the system date/time. NOTE: There are minor differences between transferring an item via the Transfer Current Item option and transferring an item via the Issues and Transfers application, covered on page 97. For consistency of
95
Chapter 4
results, we recommend a policy of using Issues and Transfers as the standard way of transferring items. On Save, the MATRECTRANS table has a record added, ISSUETYPE = TRANSFER.
! Example
Transfer 20 bearings at $0.50 (issue cost) from the central storeroom to the packaging storeroom.
Source of GL Code
Inventory control account of destination
Debit
20 x $0.50 = $10.00
Credit
20 x $0.50 = $10.00
Source of GL Code
Inventory control account of source
NOTE: If the item is capitalized and if the item already exists in the destination, then the default for both the debit and credit accounts is the capital GL account, and the default line cost is zero. See Adjust Capitalized Cost Value From N to Y on page 83 for more information. If the item is capitalized and is being stocked in the destination for the first time, then the debit account for the transfer is the inventory control account of the destination. The credit account is the capital GL account. Transferring a capitalized item to a new inventory location inserts the item as capitalized into the new inventory location. Thus, the control account for the item in that new inventory location is the inventory control account and not the capital GL account. See Insert Item/Location Record on page 75 for more information. Transfer Current Item in Inventory Control does not work exactly the same way as Transfer Out through Issues and Transfers. Transfer Current Item gives no opportunity to receive against an internal PO. Furthermore, Transfer Current Item gives no opportunity to transfer to/from either a courier or a labor location.
96
Financial Processes
Entries into some columns in the database (besides the GL) differ for the same transaction, depending on whether you use Transfer Current Item or Issues and Transfers. These columns include LDKEY, EXCHANGERATE and CURRENCYLINECOST. For example, suppose that you transfer one item at cost of $10.00 each. Differences in the MATRECTRANS table would be:
Method
LDKEY EXCHANGERATE CURRENCYLINECOST
Issues and Transfers

(BLANK) 1 10
Transfer Current Item

0 0 0
ISSUES AND TRANSFERS APPLICATION Process: Issue an Item

In Issues and Transfers, you can issue an item via the Issue tab. The financial period for the transaction is determined by the date/time in the Enter Date field in the table window, which defaults to the system date/time. NOTE: You can also issue an item via either of the following two processes: Issue Current Item (page 89) in Inventory Control or Report Actual Material Usage (page 110) in Work Orders. However, there are minor database differences among the various methods of issuing items. For consistency of results, we recommend a policy of using Issues and Transfers as the standard way of transferring items.
Primary Transaction
On Save, the MATUSETRANS table has a record added, ISSUETYPE = ISSUE.
97
Chapter 4
! Example
Issue 20 bearings at $0.50 (issue cost).
Source of GL Code
1. Inventory GL account (item resource code) 2. If issued to a work order " work order GL account 3. If issued to equipment " Equipment GL account GL account of equipments location 4. If issued to a location " If only one piece of equipment at location, equipment GL account Location GL account
Debit
20 x $0.50 = $10.00
Credit
20 x $0.50 = $10.00
Source of GL Code
98
Financial Processes
Process: Return an Item

In Issues and Transfers, you can return an item via Select Items for Return on the Actions menu. NOTE: You can also return an item via either of the following two processes: Return an Item in Inventory Control (page 93) or Report Actual Material Usage in Work Orders (page 110). However, there are minor database differences among the various methods of returning items. For consistency of results, we recommend a policy of using Issues and Transfers as the standard way of returning items. The financial period for the transaction is determined by the date/time in the Enter Date field in the table window, which defaults to the system date/time. To return items in Issues and Transfers, you must select the applicable items from a list of previously issued items. Thus, the debit and credit accounts default to the reverse of what the accounts were when the item was issued. These accounts are read-only.
Primary Transaction
On Save, the MATUSETRANS table has a record added, ISSUETYPE = RETURN.
! Example
Return 4 bearings that were issued at $0.50 each. At issue, the debit account was 1111-111-111 and the credit account was 2222-222-222.
99
Chapter 4
Source of GL Code
2222-222-222 Credit GL used when item was issued (read-only)
Debit
4 x $0.50 = $2.00
Credit
4 x $0.50 = $2.00
Source of GL Code
1111-111-111 Debit GL used when item was issued (read-only)
Process: Transfer Out

This process is done via the Issues and Transfers application. The financial period for the transaction is determined by the date/time in the Enter Date field in the table window, which defaults to the system date/time. NOTE: You can also transfer an item via the Transfer Current Item option in Inventory Control, discussed on page 95. There are minor differences between transferring an item via the Issue Current Item option and transferring an item via the Issues and Transfers application. For consistency of results, we recommend a policy of using Issues and Transfers as the standard way of transferring items.
Primary Transaction
On Save, the MATRECTRANS table has a record added, ISSUETYPE = TRANSFER.
! Example
Transfer 20 bearings at $0.50 (issue cost) from the central storeroom to the packaging storeroom.
100
Financial Processes
Source of GL Code
1. If in response to an internal purchase order " purchase order line Debit GL Account 2. Inventory control account of destination storeroom
Debit
20 x $0.50 = $10.00
Credit
20 x $0.50 = $10.00
Source of GL Code 1. If in response to

an internal purchase order " purchase order line Credit GL Account account of source storeroom
2. Inventory control
NOTE: If the item is capitalized and if the item already exists in the destination, then the default for both the debit and credit accounts is the capital GL account, and the line cost is zero. See Adjust Capitalized Cost Value From N to Y on page 83 for more information. If the item is capitalized and the item is being stocked in the destination for the first time, then the debit account for the transfer is the inventory control account of the destination. The credit account is the capital GL account. Transferring a capitalized item to a new inventory location inserts the item as capitalized into the new inventory location. Thus, the control account for the item in that new inventory location is the inventory control account and not the capital GL account. See Insert Item/Location Record on page 75 for more information.
Secondary Transaction
If you are transferring against an internal PO, the transfer produces the same transactions produced by the Material Receipt, Internal process in Purchasing
101
Chapter 4
(see page 125). Thus, a transfer against an internal PO produces a secondary transaction under the following conditions:

You are using standard cost as your issue cost. The receipt price varies from the standard price in the destination storeroom.
Under these conditions, a record is added to the INVTRANS table with TRANSTYPE = STDRECADJ. The value of the transaction (i.e., the LINECOST) equals: Receipt Qty x (Receipt Price - Standard Price).
! Example
You transfer 20 bearings into the central storeroom at $0.50 each (primary transaction), but the standard cost of the bearings in the central storeroom is $0.45 each. Your company is using standard costing.
Source of GL Code
Receipts price variance account
Debit
($0.50 -$0.45) x 20 = $1.00
Credit
($0.50 -$0.45) x 20 = $1.00
Source of GL Code
NOTE: If the item is capitalized, then the default credit account is the capital GL account. Furthermore, since the standard cost of a capitalized item is zero, then, for the standard receipt adjustment transaction, the line cost equals the receipt price of the item. See Adjust Capitalized Cost Value From N to Y on page 83 for more information. NOTE: All cost entries and calculations are made in the base currency.
Process: Transfer In
This process is done via the Issues and Transfers application.
102
Financial Processes
The financial period for the transaction is determined by the date/time in the Enter Date field in the table window, which defaults to the system date/time. NOTE: You can also transfer an item via the Transfer Current Item option in Inventory Control, discussed on page 95. There are minor differences between transferring an item via the Transfer Current Item option and transferring an item via the Issues and Transfers application. For consistency of results, we recommend a policy of using Issues and Transfers as the standard way of transferring items.
Primary Transaction
On Save, the MATRECTRANS table has a record added, ISSUETYPE = TRANSFER.
! Example
Transfer 20 bearings at $0.50 (issue cost) into the packaging storeroom from the central storeroom.
Source of GL Code
1. If in response to an internal purchase order " purchase order line Debit GL Account 2. Inventory control account of destination storeroom
Debit
20 x $0.50 = $10.00
Credit
20 x $0.50 = $10.00
Source of GL Code 1. If in response to

an internal purchase order " purchase order line Credit GL Account account of source storeroom
2. Inventory control
NOTE: If the item is capitalized and if the item already exists in the destination, then the default for both the debit and credit accounts is the capital GL account, and the line cost is zero. See Adjust
103
Chapter 4
Capitalized Cost Value From N to Y on page 83 for more information. If the item is capitalized and the item is being stocked in the destination for the first time, then the debit account for the transfer is the inventory control account of the destination. The credit account is the capital GL account. Transferring a capitalized item to a new inventory location inserts the item as capitalized into the new inventory location. Thus, the control account for the item in that new inventory location is the inventory control account and not the capital GL account. See Insert Item/Location Record on page 75 for more information.
If you are transferring against an internal PO, the transfer produces the same transactions produced by the Material Receipt, Internal process in Purchasing (see page 125). Thus, a transfer against an internal PO produces a secondary transaction under the following conditions:

You are using standard cost as your issue cost. The receipt price varies from the standard price in the destination storeroom.
Under these conditions, a record is added to the INVTRANS table with TRANSTYPE = STDRECADJ. The value of the transaction (i.e., the LINECOST) equals: Receipt Qty x (Receipt Price - Standard Price).
! Example
You transfer 20 bearings into the central storeroom at $0.50 each (primary transaction), but the standard cost of the bearings in the central storeroom is $0.45 each. Your company is using standard costing.
104
Financial Processes
Source of GL Code
Debit
($0.50 -$0.45) x 20 = $1.00
Credit
($0.50 -$0.45) x 20 = $1.00
Source of GL Code
NOTE: If the item is capitalized, then the default credit account is the capital GL account. Furthermore, since the standard cost of a capitalized item is zero, then, for the standard receipt adjustment transaction, the line cost equals the receipt price of the item. See Adjust Capitalized Cost Value From N to Y on page 83 for more information. NOTE: All cost entries and calculations are made in the base currency.
Process: Material Receipt, Internal

In Issues and Transfers, you can transfer an item against an internal purchase order. The resulting GL transactions are covered in the two preceding processes, Transfer In and Transfer Out. Furthermore, transferring against an internal purchase order produces the same results as doing an internal receipt via the Purchase Orders Material Receipts tab. For more information, see Material Receipt, Internal on page 125, in the Purchase Orders Application section.
Process: Report Metered Material Usage Against a Work Order

This process is done via the Issues and Transfers application. When you issue an item, you can enter meter readings at the same time on either meter 1 or meter 2 or both. The financial period for the transaction is determined by the date/time in the Transaction Date field in the table window, which defaults to the system date/time.
105
Chapter 4
Primary Transaction
On Save, the MATUSETRANS table has a record added, ISSUETYPE = ISSUE.
! Example
Report usage of 50 gallons of gasoline at $1.00 per gallon. The gasoline is issued or reported used at the average or the standard cost, as per the setting in Application Setup.
Source of GL Code
1. Inventory GL account (item resource code) 2. If debit GL account entered in Default Table Data of Metered Material Usage " Debit GL account 3. Work order GL account
Debit
50 x $1.00 = $50.00
Credit
50 x $1.00 = $50.00
Source of GL Code
PREVENTIVE MAINTENANCE APPLICATION Process: Insert Preventive Maintenance Record

Preventive maintenance records are inserted in the Preventive Maintenance application. No general ledger transactions result from the insertion of PM records. However, you can specify either some or all components of a GL account code on the PM record. This code will be used as the GL account on work orders generated from
106
Financial Processes
the PM record. Any unspecified segments are taken from the associated location and/or equipment, if specified on those records. On work orders generated from the PM record, the GL account specified on the PM record takes precedence over the account(s) specified on the associated location and/or equipment records. NOTE: Work orders generated from PM records have a status of waiting to be scheduled, and the GL Account field is not editable. If no GL account is specified on the PM record, work orders generated from the PM record take GL account information from the associated location and/or equipment, as specified below in the Work Orders section. In summary, a work order generated from a PM record receives its GL account from the following records, in order of precedence: 1. The GL Account field on the PM record. 2. The GL account on the equipment record. 3. The GL account on the location record. The GL Account field on work orders generated from PM records is read-only.
Process: Insert Work Order

See the following section, Work Orders Applications, for information about inserting a work order.
107
Chapter 4
WORK ORDERS APPLICATIONS Process: Insert Work Order

Work orders can be inserted via Work Order Tracking, Quick Reporting, the Work Manager, and Preventive Maintenance. No general ledger transactions result from the insertion of work order records. However, a default code will be assigned to the GL account, according to the information (i.e., equipment number, location) you enter on the work order. You can also specify a particular GL account when you create a work order record. The source of the default code for the GL account remains the same, regardless of which application is used to insert the work order. The default code is written to the GLACCOUNT column in the WORKORDER table of the database. In summary, work orders receive their GL account from the following sources, in order of precedence: 1. Manual entry or editing of the GL Account field, if the work order was not generated from a PM record, and has not been approved. 2. The GL account on the PM record (if any) from which the work order was generated. 3. The GL account (if any) on the equipment record. 4. The GL account on the location record. As noted above, work orders can be created by generating them from a PM record. If there is a GL account specified on the PM record, work orders generated from that PM record use the PM record GL account. The PM record GL account will override GL account information from the location and/or equipment on the work order. We recommend assigning GL accounts to locations, instead of assigning GL accounts to pieces of equipment. If you follow this recommendation, then the work order GL account will default to the location GL account.
108
Financial Processes
! Example
Insert a work order for a piece of equipment with no GL account. If the work order is to be performed at a location with GL account 1111-222-???, then the resulting work order GL account will be the same as the location GL account (i.e., 1111-222-???).
However, it is possible for you to assign GL accounts to pieces of equipment, as well as to locations. If you specify both an equipment number and a location on the work order, then both the equipment and the location will have GL accounts. In that case, the work order GL account is the result of a merge between the equipment GL and the location GL. In the merge, any specified components of the equipment GL account take precedence over the same components of a location GL account.
! Example
Insert a work order for a piece of equipment with GL account ????-111???. If the work order is to be performed at a location with GL account 1111-222-???, then the work order GL account will be 1111-111-???. Insert a work order for a piece of equipment with GL account 2222-111???. If the work order is to be performed at a location with GL account 1111-222-???, then the work order GL account will be the same as the equipment GL account (i.e., 2222-111-???).
! Example
If you specify a location with a single piece of equipment in it, the equipment is copied to the work order, and the equipments GL, if any, is copied to the work order. If you specify a location with multiple pieces of equipment in it, and do not specify a piece of equipment, then neither an equipment identifier nor an equipment GL account is copied to the work order. Instead of an equipment GL account, the location GL account is copied to the work order. You can also manually enter or edit a GL account on a work order, if the work order has not been approved and was not generated from a PM record.
109
Chapter 4
Process: Report Actual Material Usage

This process is done via the Materials subtab on the Actuals tab in Work Order Tracking, or via the Quick Reporting application. There are no differences in terms of the GL transactions. The financial period for the transaction is determined by the date/time in the Enter Date field in the table window, which defaults to the system date/time.
If Issue Type Field is set to Issue (the Default)

This process is analogous to issuing an item to a work order, which can be performed either in Inventory Control (page 89) or in Issues and Transfers (page 97). On Save, after entering material usage information, the MATUSETRANS table (Material Usage Transaction table) has a record added, ISSUETYPE = ISSUE.
! Example
Report use of 20 bearings (item type = BEARINGS), costing $0.20 per piece, on the Materials subtab on the Actuals tab in Work Order Tracking.
Source of GL Code
1. Inventory GL account (item resource code) 2. Work order GL account
Debit
20 x $0.20 = $4.00
Credit
20 x $0.20 = $4.00
Source of GL Code
110
Financial Processes
If Issue Type Field is set to Return

This process is analogous to returning an item from a work order, which can be performed either in Inventory Control (page 93) or in Issues and Transfers (page 99). On Save, after entering material usage information, the MATUSETRANS table (Material Usage Transaction table) has a record added, ISSUETYPE = RETURN.
! Example
Report return of 20 bearings (item type = BEARINGS), costing $0.20 each, on the Materials subtab on the Actuals tab in Work Order Tracking.
Source of GL Code
Inventory Control account
Debit
20 x $0.20 = $4.00
Credit
20 x $0.20 = $4.00
Source of GL Code
1. Inventory GL account (item resource code) 2. Work order GL account
NOTE: If the item is capitalized, then the default debit account is the capital GL account, and the line cost is zero. See Adjust Capitalized Cost Value From N to Y on page 83 for more information.
Process: Report Actual Labor Usage

This process is done via the Labor subtab on the Actuals tab in Work Order Tracking, via the Quick Reporting application, or via the Work Manager. Labor usage can also be reported via the Labor Reporting application. There are no differences in terms of the GL transactions. At the transaction level, reporting actual labor use, by labor code or by craft, works just as it does when using the Labor Reporting application to report labor
111
Chapter 4
usage. See the discussions of reporting internal and external labor usage in the Labor Reporting Application section (page 66). The only difference between reporting labor usage in the Work Orders applications and via Labor Reporting is that in Work Orders there is always a work order number, and thus a work order GL account; in Labor Reporting it is possible to report labor usage directly against equipment or an operating location, without a work order number. The financial period for the transaction is determined by the date/time in the Entered Date field in the table window, which defaults to the system date/time.
Process: Report Actual Tool Usage

Internal Tools
This process is done via the Tools subtab on the Actuals tab in Work Order Tracking. Internal tools are those that belong to your company, and not to an outside vendor or contractor. The financial period for the transaction is determined by the date/time in the Entered Date field in the table window, which defaults to the system date/time.
! Example
Report 2 hours use of a hoist, costing $5.00 an hour, on the Tools subtab on the Actuals tab in Work Order Tracking.
112
Financial Processes
Source of GL Code
1. Internal tools GL account (resource code) 2. Work order GL account
Debit
2 x $5.00 = $10.00
Credit
2 x $5.00 = $10.00
Source of GL Code
Internal tools control account
External Tools
Reporting use of external tools is done the same as reporting internal tool usage. If the tools Outside? field is set to Y, the external tool resource code is used on the debit side, and the external tools control account, established by tool vendor, is used on the credit side. On Save, after entering tool usage information, the TOOLTRANS (Tools Transactions table) has a record added. The financial period for the transaction is determined by the date/time in the Entered Date field in the table window, which defaults to the system date/time.
! Example
Report 2 hours use of a hoist, belonging to a contractor and costing $7.00 an hour, on the Tools subtab on the Actuals tab in Work Order Tracking.
113
Chapter 4
Source of GL Code
1. External tools GL account (resource code) 2. Work order GL account
Debit
2 x $7.00 = $14.00
Credit
2 x $7.00 = $14.00
Source of GL Code
External tools control account, for tool vendor

See Move/Modify Equipment on page 71, in the Equipment Application section.
PURCHASE REQUISITIONS APPLICATION

NOTE: Processes that result in debit/credit transactions use decimal fields and amount (cost) fields. To minimize the effects of rounding in calculations, we suggest using Database Configuration to set the scale (the number of places calculated and displayed to the right of the decimal point) of these fields to six or more places.
Process: Insert External PR Record

NOTE: There are no GL or API implications in MAXIMO when a PR record is inserted. GL codes default on insertion of PR line items, to be used when copying to a PO.
114
Financial Processes
Process: Insert Internal PR Record

NOTE: There are no GL or API implications in MAXIMO. GL codes default on insertion of PR line items, to be used when copying to a PO.
Process: Insert PR Line Item Record

This process is done via the PR Line tab in Purchase Requisitions (see also Reorder Items in Inventory Control). On Save, a record is added to the PRLINE table. The addition of the record both establishes and validates the accounts used in future transactions. No actual monetary transaction results from insertion of a PR line. NOTE: The GL accounts may be partially specified until a purchase order for the line item has been approved. In general,

if the Storeroom Location field is filled, then Issue on Receipt? = N; whereas, if the Storeroom Location field is blank, then Issue on Receipt? = Y.
More specifically, if you initially enter a storeroom in the Storeroom Location field, then Issue on Receipt? will remain equal to N, which is the default. If the Storeroom Location field is filled, then overriding the default code in the Debit GL Account field, causes neither the Issue on Receipt? value nor the Storeroom Location field to change. Thus, when you are completing a purchase requisition line for a special order item, typing a code in the Debit GL Account field neither clears the Storeroom Location field nor changes the Issue on Receipt? value to Y. However, if the Storeroom Location field is initially blank, then typing an account code in the Debit GL Account field changes the Issue on Receipt? value to Y.
115
Chapter 4
Furthermore, if you fill the Storeroom Location field and then type (1) a work order number in the Work Order field, (2) a non-inventory location in the Location field, or (3) an equipment number in the Equipment field, then Issue on Receipt? changes to Y and the Storeroom Location field clears. The Debit GL Account field then defaults as explained in Case 2: Direct Issue Item (Issue on Receipt? = Y) and Charge to Store? = N, on page 118. NOTE: Taxes and standard services can be added to the cost of individual PR, PO, and Invoice lines, as follows: Taxes You can use Tax Options from the Actions menu in Application Setup to specify which taxes (by tax type) you want added to PR, PO, and Invoice lines. Using the Tax Options dialog box, you can specify that each tax type, 1 5, be added to: no items (the default), issue on receipt (direct issue) items only, or all items. The tax is added to the Line Cost for the item; the total for the line does not appear on the PR Lines tab, but does appear in the Loaded Cost column on the PO and Invoice Lines tabs. Standard Services You can add selected standard services to PR, PO, and Invoice lines by prorating them back over the lines. To do this, select Add/Modify Standard Services from the Actions menu, and enter Y in the Prorate? column on the Add/Modify Standard Services dialog box. You can elect to add standard services to issue-on-receipt items only. To do so, select Purchasing Options from the Actions menu in Application Setup, and check Add Standard Service Costs to Direct Issue Items ONLY. Adding taxes and standard services to the cost of an item increases the stocked item average cost for that item. To avoid this increase, you
116
Financial Processes
can elect to add the tax or standard service to issue on receipt items only. Then, items issued directly to a Work Order (WO), General Ledger Account (GL), Location, or piece of Equipment will have the tax or standard service added only to the cost of the individual item. Taxes and standard services are added to the Line Cost for the item; the total for the line appears in the Loaded Cost column on the PR, PO and Invoice Lines tabs. Case 1: Materials to Be Delivered to a Storeroom (Issue on Receipt? = N) NOTE: You must enter a storeroom in this case.
! Example
Requisition 20 bearings for a storeroom at $0.50 each.
Source of GL Code
Inventory Control account of the destination
Debit
20 x $0.50 = $10.00
Credit
20 x $0.50 = $10.00
Source of GL Code
If external: Vendors RBNI account If internal: Inventory control account of source storeroom
NOTE: If the item is capitalized, then the default debit account is the capital GL account. If the PR is internal, then the default credit account is also the capital GL account. The default line cost is zero. Again, this transaction is not a financial transaction. See Adjust Capitalized Cost Value From N to Y on page 83 for more information. NOTE: If Capitalized? = Y upon insertion of the item, the inventory control account, the shrinkage cost account and the inventory cost adjustment account for the storeroom are filled with the defaults (i.e., are not
117
Chapter 4
blank). Thus, when inserting an item that you want to be capitalized, we recommend that you (1) set Capitalized? to N on insertion and then (2) use the Adjust Capitalized Cost option to change Capitalized? to Y. If you have already inserted items for which Capitalized? = Y upon insertion, note that the default debit account for a purchase will be inventory control. (Furthermore, the default line cost will be non-zero.) Thus, if you want the debit account to be the capital GL account, you will need to overwrite the GL debit account on the PR or PO line. Case 2: Direct Issue Item (Issue on Receipt? = Y) and Charge to Store? = N NOTE: You must enter one of the following: a debit GL account, a work order number, an equipment number, or a location. Internal PRs can only be for inventory material from a storeroom.
118
Financial Processes
! Example
Requisition 20 bearings at $0.50 each.
Source of GL Code
1. Item resource code* 2. If issued to a work order " work order GL account 3. If issued to equipment " Equipment GL account GL account of equipments location 4. If issued to a location " If only one piece of equipment at location, equipment GL account Location GL account
Debit
20 x $0.50 = $10.00
Credit
20 x $0.50 = $10.00
Source of GL Code
Vendors RBNI account
* Item resource code is relevant only if the item is material and not service. This resource code is the default resource code for the item type. Since the item is not
119
Chapter 4
purchased for a storeroom, the resource code does not come from the INVENTORY table. Case 3: Service Associated With Rotating Equipment and Charge to Store? = Y (Issue on Receipt? = Y) NOTE: You must change Charge to Store? to Y to get the result below. You must then enter into the Equipment field the number for a piece of rotating equipment that is not currently in a storeroom and that is not associated with a capitalized item. NOTE: Services cannot be ordered on internal PRs.
! Example
Requisition 2 hours of computer repair at $50.00 an hour.
Source of GL Code
Equipment rotating suspense account
Debit
2 x $50.00 = $100.00
Credit
2 x $50.00 = $100.00
Source of GL Code
Vendors RBNI account

PURCHASE ORDERS APPLICATION

120
Financial Processes
Process: Insert External, Blanket/Pricing Agreement, Release PO Record

NOTE: There are no GL or API implications in MAXIMO at the creation of the PO record. GL account codes default on insertion of PO line items, to be used when copying to receipt or invoice.
Process: Insert Internal PO Record

NOTE: There are no GL or API implications in MAXIMO at creation of the PO record. GL account codes default on insertion of PO line items, to be used when copying to receipt or invoice.
Process: Insert PO Line Item Record

This process is done via the PO Lines tab in Purchase Orders. On Save, a record is added to the POLINE table. The addition of the record both establishes and validates the accounts used in future transactions. No actual monetary transaction results from insertion of a PO line. The GL debit and credit accounts default exactly as discussed in the Insert PR Line Item Record process. NOTE: The GL accounts may be partially specified until the purchase order for the line item has been approved. Even if the accounts are fully specified at the insertion point, the fully specified accounts are not validated until PO approval. NOTE: Taxes and standard services can be added to the cost of individual PR, PO, and Invoice lines, as follows: Taxes
121
Chapter 4
You can use Tax Options from the Actions menu in Application Setup to specify which taxes (by tax type) you want added to PR, PO, and Invoice lines. Using the Tax Options dialog box, you can specify that each tax type, 1 5, be added to: no items (the default), issue on receipt (direct issue) items only, or all items. The tax is added to the Line Cost for the item; the total for the line does not appear on the PR Lines tab, but does appear in the Loaded Cost column on the PO and Invoice Lines tabs. Standard Services You can add selected standard services to PR, PO, and Invoice lines by prorating them back over the lines. To do this, select Add/Modify Standard Services from the Actions menu, and enter Y in the Prorate? column on the Add/Modify Standard Services dialog box. You can elect to add standard services to issue-on-receipt items only. To do so, select Purchasing Options from the Actions menu in Application Setup, and check Add Standard Service Costs to Direct Issue Items ONLY. Adding taxes and standard services to the cost of an item increases the stocked item average cost for that item. To avoid this increase, you can elect to add the tax or standard service to issue on receipt items only. Then, items issued directly to a Work Order (WO), General Ledger Account (GL), Location, or piece of Equipment will have the tax or standard service added only to the cost of the individual item. Taxes and standard services are added to the Line Cost for the item; the total for the line does not appear on the PR Lines tab, but does appear in the Loaded Cost column on the PO and Invoice Lines tabs.
122
Financial Processes
Process: Approve PO Record

NOTE: At this stage, the debit GL and credit GL accounts must be fully specified. Furthermore, even if the account was fully specified prior to this stage, it is not validated until approval.
Process: Material Receipt, External, into Storeroom

This process is done via the Material Receipts tab in Purchase Orders. The financial period for the transaction is determined by the date/time in the Received Date field in the table window, which defaults to the system date/time. Note: The Loaded Cost column in the table window represents the cost of material, plus any taxes or standard services that have been added to the line.
Primary Transaction
On save, the MATRECTRANS table has a record added.
! Example
Receive 20 bearings at $0.50 each.
Source of GL Code
Purchase order line Debit Account
Debit
20 x $0.50 = $10.00
Credit
20 x $0.50 = $10.00
Source of GL Code
Purchase order line Credit Account
See Case 1 in the process, Insert a PR Line Item Record, for the default order of the PO line accounts.
123
Chapter 4
If using standard costing, and the receipt price varies from the standard price, a record is added to the INVTRANS table with TRANSTYPE = STDRECADJ. The value of the transaction (i.e., the LINECOST) equals: Receipt Qty x (Receipt Price - Standard Price).
! Example
You receive 20 bearings at $0.50 each (primary transaction), but standard price was $0.45 each. Your company uses standard costing.
Source of GL Code
Debit
($0.50 -$0.45) x 20 = $1.00
Credit
($0.50 -$0.45) x 20 = $1.00
Source of GL Code
NOTE: If the item is capitalized, then the default credit account is the capital GL account. Furthermore, since the standard cost of a capitalized item is zero, then, for the standard receipt adjustment, the line cost equals the receipt price of the item. See Adjust Capitalized Cost Value From N to Y on page 83 for more information. NOTE: All cost entries and calculations are made in the base currency.
Process: Material Receipt, External, Issue on Receipt

This process is done via the Material Receipts tab in Purchase Orders. The financial period for the transaction is determined by the date/time in the Received Date field in the table window, which defaults to the system date/time.
124
Financial Processes
Primary Transaction
On save, the MATRECTRANS table has a record added. As with the previous process (Material Receipt, External, into Storeroom), the debit and credit accounts are the same as for inserting either a PO line or a PR line. See Case 2 in the process, Insert a PR Line Item Record, for more specific information about how the accounts default.
A record is also added to MATUSETRANS with ISSUETYPE = ISSUE, but it is ignored by the API. This record represents the issue of the item upon receipt. From a GL perspective, it is the same transaction as in MATRECTRANS.
Process: Material Receipt, Internal

To receive an item against an internal PO, use the Material Receipts tab in Purchase Orders. You can also receive an item against an internal PO by using Issues and Transfers. The financial period for the transaction is determined by the date/time in the Received Date field in the table window, which defaults to the system date/time. On Save, the MATRECTRANS table has a record added with ISSUETYPE = TRANSFER. Otherwise, this process is analogous to Material Receipt, External, into Storeroom. More specifically, if you are using standard costing, there is a potential secondary transaction. Suppose the item is moving from storeroom A to storeroom B, and the receipt price in MAXIMO is different than the standard price of the item in storeroom B. As in the external case, there is a record added to the INVTRANS table with TRANSTYPE = STDRECADJ. The value of the
125
Chapter 4
transaction (i.e., the LINECOST) is [Receipt Qty x (Receipt Price - Standard Price in Storeroom B)].
Process: Service Receipt

This process is done via the Service Receipts tab in Purchase Orders. The financial period for the transaction is determined by the date/time in the Received Date field in the table window, which defaults to the system date/time. On Save, the SERVRECTRANS table has a record added. From a GL perspective, this process produces a transaction analogous to the primary transaction for an external material receipt (i.e., the debit and credit accounts are the same as for inserting either a PO line or a PR line). See Cases 2 and 3 in the process Insert a PR Line Item Record, for more specific information about how the accounts default.

INVOICES APPLICATION
The financial period for all transactions in the Invoices application is taken from the Entered Date field in the Invoices application. Although MAXIMO may create records to establish GL accounts, no GL transactions occur until you approve the invoice. Upon invoice approval, many transactions can occur.
126
Financial Processes
Process: Insert Invoice

This process is done via the Invoices application. NOTE: The date in the Entered (date) field in the Document Dates section determines the financial period for the transactions. NOTE: The invoice total (and, if applicable, the currency) are normally entered manually, from the invoice copy. As a control, you can also enter the tax. However, if the tax calculation rules are established correctly, MAXIMO calculates the tax for you. On Save, MAXIMO creates a record in the INVOICE database table. The only GL accounts that MAXIMO establishes upon Save are the tax GL accounts, which default from the TAXTYPE table and are written to the INVOICE database table. Thus, inserting information in only the Invoices application establishes neither an invoice debit account nor an invoice credit account. These accounts are established when you insert an invoice line (see the next process, Insert Invoice Line).
Process: Insert Invoice Line

This process is done via the Invoice Lines tab. On save, MAXIMO adds a record to the INVOICECOST table, but produces no financial transactions.
127
Chapter 4
The record in INVOICECOST shows the accounts that would be charged if both the receipt and invoice approval processes were done in one step. Thus, in INVOICECOST, the GLDEBITACCT is the PO line debit account, as in receipts. If there is no PO, which is only permitted in case of a service, the debit account defaults as if you were inserting a PR line. The GLCREDITACCT is the AP suspense account for the vendor specified in the Invoices application, as for approve invoices (see below). When you approve the invoice, if it contains items that were not placed on a PO, there will be a service transaction that substitutes for the (nonexistent) receipt transaction. The debit account in the service transaction will be the debit account created in INVOICECOST. For more information, see Service Transaction on page 130, in the process, Approve Invoice.
Process: Distribute Costs

This process is done using the Distribute Costs action in the Invoice Lines tab. NOTE: There is no transaction written to the general ledger as a result of this process. The effect of this process is analogous to adding an invoice line(s) and revaluing any existing lines.
! Example
Initially, you entered an invoice line for a service with line cost of $100 and no PO for invoice #3456. You now want to distribute the cost of the service with 80% going to the account that was originally charged (1111-111-111) and 20% going to another account (2222-222-222). The original record in INVOICECOST will contain the following data:
INVOICENUM 3456 GLDEBITACCT 1111-111-111 GLCREDITACCT AP Suspense Account LINECOST $100
Using the Distribute Costs dialog box, you change the percentage on line 1 to 80. You then add line 2 with a percentage of 20, and a debit account of 2222-222-222.
128
Financial Processes
After the Distribute Costs option is used and the modified invoice record is saved, there are two records in INVOICECOST. These records include the following data:
INVOICENUM 3456 3456 GLDEBITACCT 1111-111-111 2222-222-222 GLCREDITACCT AP Suspense Account AP Suspense Account LINECOST $80 $20
NOTE: If there already exists an invoice line with a PO line number specified, and you have received the line item, you must reverse or back out this line. By doing so, the original cost transactions made upon receipt will be automatically adjusted upon invoice approval. Otherwise, the entries established upon receipt will not match up with the invoice cost distribution entries. See the Invoices online Help (particularly, How Do I Distribute Costs on an Invoice) for instructions on backing out the lines for the received items.
Process: Approve Invoice

The financial period for all transactions generated by invoice approval is determined by the date/time in the Entered (date) field in the Invoices application. If there is a PO number for the invoiced item and if the Buy Ahead field (usually hidden) in the PO application is set to Y, then the exchange rate at invoice approval is the rate locked in with the vendor at the time of the PO. Otherwise, if the Vendor Currency field in the Invoices application is completed, then the exchange rate is the current active rate from the Exchange Rate table in Currency Management. If the Vendor Currency field is blank, then the exchange rate is set to 1. Assume that in the following examples, any variances are within the chosen tolerances, so that the invoice is, in fact, approved.
129
Chapter 4
Primary Transaction (Invoice Total Transaction)

When you click OK, MAXIMO writes a transaction with TRANSTYPE = TOTAL to INVOICETRANS.
! Example
Approve an invoice for 20 bearings at $0.50 each, plus tax of $0.75.
Source of GL Code
Company RBNI account
Debit
(20 x $0.50) + $0.75 = $10.75
Credit
(20 x $0.50) + $0.75 = $10.75
Source of GL Code
Company AP suspense account
A secondary transaction, explained below, moves the tax portion into a tax account. We include tax in the example above to emphasize that the line cost for the TOTAL transaction does include tax. NOTE: Even if the unit cost of the item is in a foreign currency (e.g., French francs), the LINECOST is in the base currency (e.g., U.S. dollars). The exchange rate used at invoice approval is determined by the approval date and the financial period is determined from the invoice enter date in the INVOICE table.
Additional Transactions
There can be additional transactions as outlined below. These potential transactions are written to the INVOICETRANS, MATRECTRANS and/or SERVRECTRANS database tables. All transactions are in the base currency.
Service Transaction for Each Invoice Line With no Associated PO Line

If the invoice contains a line for a service for which there is no PO line, then MAXIMO writes an additional transaction to SERVRECTRANS. Since there was no associated PO, there was no receipt of that service and, thus, an entry is
130
Financial Processes
needed to substitute for the receipt stage. Therefore, the debit account defaults as if you were inserting a PO line (or a PR line). Charge to Store? = N
! Example
You receive an invoice for 2 hours of computer repair at $50 an hour. There is no PO associated with the invoice, and Charge to Store? = N. In addition to the primary transaction, there is a transaction to SERVRECTRANS:
131
Chapter 4
Source of GL Code
1. If issued to a work order " work order GL account 2. If issued to equipment " Equipment GL account GL account of equipments location 3. If issued to a location " If only one piece of equipment at location, equipment GL account Location GL account Charge to Store? = Y
Debit
2 x $50.00 = $100.00
Credit
2 x $50.00 = $100.00
Source of GL Code
If Charge to Store? = Y, then the charges will be carried through to the rotating equipment.
! Example
You receive an invoice for 2 hours of computer repair at $50 an hour. There is no PO associated with the invoice, and Charge to Store? = Y. In
132
Financial Processes
addition to the primary transaction, there is a transaction to SERVRECTRANS:
Source of GL Code
Equipment rotating suspense account
Debit
2 x $50.00 = $100.00
Credit
2 x $50.00 = $100.00
Source of GL Code
Furthermore, when UpdateInventory = 1, the database inventory cost of the rotating equipment (e.g., the computer) is updated.
Tax Transactions
As in the example above, the invoice may include tax. If so, in addition to the transaction of TRANSTYPE = TOTAL, there are transactions written to INVOICETRANS with TRANSTYPE = TAXn, where 1 n 5. The value of n depends on which tax type was selected for the tax in Chart of Accounts. Pay Tax to Vendor? = Y Recall the example used for the primary transaction:
! Example
If the tax is of type Tax 1, then a tax transaction of TRANSTYPE = TAX1 is written to INVOICETRANS:
Source of GL Code
Paid Tax GL account
Debit
$0.75 $0.75
Credit
Source of GL Code
NOTE: This line cost of this transaction is in the base currency. Pay Tax to Vendor? = N
133
Chapter 4
Recall the example used for the primary transaction:
! Example
If the tax is of type Tax 1, then a tax transaction with TRANSTYPE = TAX1 is written to INVOICETRANS:
Source of GL Code
Unpaid Tax GL account
Debit
$0.75 $0.75
Credit
Source of GL Code
Paid Tax GL account
NOTE: This line cost of this transaction is in the base currency.
Transactions Associated With Cost Variances Between Receipt and Invoice

If time lapses between receipt of the item and invoice approval, then the cost associated with the invoice line may be different than the cost of the item at receipt. As outlined below, both the resulting transaction(s) and the transaction table(s) to which they are written vary in accordance with several factors. Furthermore, if the item was purchased for a store, then the way in which MAXIMO accounts for the variance depends on the source of the cost change. Potential sources are (1) the exchange rate changed and/or (2) the price on the invoice is different than expected at receipt. VARIANCES FOR MATERIALS If the invoice line is for materials, MAXIMO calculates the total exchange rate gain or loss related to the line. This amount is then combined with the total variance due to price changes related to the same invoice line. Then, one transaction for both currency variance and invoice price variance is made to MATRECTRANS (and to MATUSETRANS, if Issue on Receipt? = Y), with both debit and credit accounts defaulting as if one were inserting a PO line. In
134
Financial Processes
addition, if variances are tracked, then separate transactions for each type of variance may be written to INVOICETRANS. Materials purchased for a storeroom (Issue on Receipt? = N) If the item was purchased for inventory (Issue on Receipt? = N), MAXIMO accounts for any change in the items cost in one of three ways. The two determining factors are (1) the value of UPDATEINVENTORY in MAXIMO.INI and (2) the quantity of an item on the invoice, relative to the current balance of the item in the storeroom at the time of invoice. NOTE: Current balance refers to current balance at time of invoice, as opposed to the current balance at purchase or receipt. Note that the current balance at invoice will include only those received items that remain in the storeroom at invoice time. Thus, if many items have been issued or transferred out since receipt, the current balance at invoice time could very well be less than the invoice quantity. In all three cases below, MAXIMO will write a transaction to MATRECTRANS for the entire variance. Other events and transactions can occur, depending on the case. These events and transactions are outlined below: Case 1: UPDATEINVENTORY = 1 (the Default) and Invoice Quantity Current Balance No additional GL transactions, but MAXIMO will update the average price of the item to reflect the per unit variance. Case 2: UPDATEINVENTORY = 1 (the Default) and Invoice Quantity > Current Balance In this case, for the items still remaining in inventory, MAXIMO will also update the average price of the item to reflect the per unit variance.
135
Chapter 4
If any of the remaining variance is the result of a change in the exchange rate, MAXIMO writes a transaction of TRANSTYPE = CURVAR to INVOICETRANS for the remaining amount of the currency variance. If any of the remaining variance is the result of a change in the price (expressed in terms of the foreign currency), MAXIMO will also write a transaction of TRANSTYPE = INVCEVAR to INVOICETRANS for the remaining amount of the invoice price variance. Case 3: UPDATE INVENTORY = 0 Average price is not updated. MAXIMO will write a transaction of TRANSTYPE = CURVAR to INVOICETRANS for the portion of the total variance that is the result of a change in the exchange rate. MAXIMO will write a transaction of TRANSTYPE = INVCEVAR to INVOICETRANS for the portion of the total variance that is the result of a change in the price in the foreign currency. NOTE: Both the preceding overview and the example below apply to capitalized items, as well as to non-capitalized items.
! Example
An invoice for 20 bearings at 3.30 French francs (FF) each is approved. The base currency is US dollars, and the exchange rate is currently 5 francs per dollar. Suppose also that at the point of receipt, the item price was only 3 FF, and the exchange rate was 6 FF per dollar. Prior to receipt, there were 10 items in inventory at an average price of $0.50 each. At receipt, the bearings were 3 FF = $0.50 each. After receipt, this was also the average price of the item. At invoice approval, the bearings are 3.3 FF = $0.66 each.
136
Financial Processes
Total variance transaction: Thus, in all three cases, MAXIMO writes the following transaction of ISSUETYPE = INVOICE to MATRECTRANS:
Source of GL Code
Debit account established upon insertion of invoice line = PO Line debit account
Debit
($0.66-$0.50) x 20 = $3.20
Credit
($0.66-$0.50) x 20 = $3.20
Source of GL Code
PO line credit account = company RBNI account
Notice that if this were the only transaction, the entire variance would be charged to inventory. However, additional events and transactions can occur, as illustrated below. Case 1: UPDATEINVENTORY = 1 (the Default) and Invoice Quantity Current Balance
! Example
Continuing with the example, in this case, the entire $3.20 will be left in the inventory control account. Suppose for simplicity of calculating the average price change that between receipt and issue, no items moved into or out of the storeroom. Average price change: Originally, there were 10 items in the storeroom at $0.50 each. Upon receipt, there were 30 items at $0.50 each for a total value of $15.00. Upon invoice approval, MAXIMO will increase the value by $3.20 to $18.20. The average price is then $18.20 divided by 30 = $0.61. NOTE: Even if this item is capitalized, the average price in the storeroom changes. Thus, even if the capitalized item has a zero price in the storeroom before the invoice is approved, it has a positive price after the invoice is approved. Currency variance transaction: There is no currency variance transaction.
137
Chapter 4
Invoice price variance transaction: There is no invoice price variance transaction.
Case 2: UPDATEINVENTORY = 1 (the Default) and Invoice Quantity > Current Balance
! Example
Recall that in the original example, the 20 bearings are received at 3 FF = $0.50 each. Next, suppose that all of the prior inventory of 10, plus four of the newly received bearings are issued from the storeroom. Now, the current balance in inventory is 16 bearings. Next, the exchange rate change occurs so that 3 FF = $0.60. Finally, the invoice for the 20 bearings at 3.3 FF = $0.66 each is received. Note that the invoice quantity of 20 exceeds 16, which is the current balance in the store. Average price change: Note that each of the 20 bearings ordered is worth $0.16 more at invoice than at receipt. So, at invoice approval, MAXIMO has accounted for the additional 20 x $0.16 = $3.20 by charging it to the inventory control account. However, four of the items have already been issued. Thus, if MAXIMO left the $3.20 to be allocated among only the 16 remaining items in the store, the average price of each item would increase by $0.20. Instead, MAXIMO increases the average price of each item by $0.16 to $0.66, which accounts for 16 x 0.16 = $2.56. Thus, only $2.56 is left in the inventory control account. The remaining amount of $3.20 - $2.56 = $0.64 is both moved out of the inventory control account and allocated between the currency variance and invoice price variance accounts through the following transactions to INVOICETRANS. NOTE: Even if this item is capitalized, the average price in the storeroom changes. Thus, even if the capitalized item has a zero price in the storeroom before the invoice is approved, it has a positive price after the invoice is approved. Currency variance transaction: Here, we need to control for the price variable. The price on receipt was 3 FF = $0.50. If the price at invoice had
138
Financial Processes
been 3 FF, as opposed to 3.3 FF, the cost per bearing at invoice would have been 3 FF = $0.60. There are four invoice items that are no longer in the storeroom. Thus, MAXIMO makes the CURVAR transaction to INVOICETRANS:
Source of GL Code
Currency variance account
Debit
($0.60-$0.50) x 4 = $0.40
Credit
($0.60-$0.50) x 4 = $0.40
Source of GL Code
NOTE: Even if the item is a capitalized item, the credit account is the inventory control account, not the Capital GL account. Invoice price variance transaction: Here, we need to control for the exchange rate variable. If the exchange rate at receipt had been the same as the invoice exchange rate, then the cost per bearing at receipt would have been 3 FF = $0.60 (not $0.50). The cost at invoice was 3.3 FF = $0.66. There are four items no longer in the storeroom. Thus, MAXIMO makes the INVCEVAR transaction to INVOICETRANS:
Source of GL Code
Invoice Price Variance account of Storeroom
Debit
($0.66-$0.60) x 4 = $0.24
Credit
($0.66-$0.60) x 4 = $0.24
Source of GL Code
Thus, the $0.64 variance for the four items in inventory is composed of a $0.40 currency variance and a $0.24 price variance. NOTE: Even if the item is a capitalized item, the credit account is the inventory control account, not the Capital GL account.
NOTE: Variance accounts account for price variances by storeroom location, not by item.
139
Chapter 4
Case 3: UPDATE INVENTORY = 0
! Example
In the example for Case 2, read the portion up to, but not including, the average price change. Again, at invoice approval, MAXIMO has accounted for the additional 20 x $0.16 = $3.20 by making the INVOICE transaction to MATRECTRANS. In Case 3, this entire $3.20 will be moved out of the inventory control account, and allocated between the currency variance and the invoice price variance accounts. Average price change: There is no average price change. Currency variance transaction: The price on receipt was 3 FF = $0.50. If the price at invoice had been 3 FF, as opposed to 3.3 FF, the cost per bearing at invoice would have been 3 FF = $0.60. Thus, MAXIMO makes the CURVAR transaction to INVOICETRANS:
Source of GL Code
Currency variance account
Debit
($0.60-$0.50) x 20 = $2.00
Credit
($0.60-$0.50) x 20 = $2.00
Source of GL Code
NOTE: Even if the item is a capitalized item, the credit account is the inventory control account, not the Capital GL account. Invoice price variance transaction: Here, we need to control for the exchange rate variable. If the exchange rate at receipt had been the same as the invoice exchange rate, then the cost per bearing at receipt would have been 3 FF = $0.60 (not $0.50). The cost at invoice was 3.3 FF = $0.66. Thus, MAXIMO makes the INVCEVAR transaction to INVOICETRANS:
140
Financial Processes
Source of GL Code
Invoice Price Variance account of Storeroom
Debit
($0.66-$0.60) x 20 = $1.20
Credit
($0.66-$0.60) x 20 = $1.20
Source of GL Code
Thus, the $3.20 variance for the 20 items on the invoice is made of a $2.00 currency variance and a $1.20 price variance. NOTE: Even if the item is a capitalized item, the credit account is the inventory control account, not the Capital GL account.
NOTE: Variance accounts account for price variances by storeroom location, not by item. Materials to Be Issued on Receipt (Issue on Receipt? = Y) If the item is a material to be issued on receipt, MAXIMO accounts for any change in the item cost by entries both to MATRECTRANS and to MATUSETRANS. The accounts default as if you were inserting a PR line. If the materials were charged to a work order, MAXIMO also updates the Actual Materials Cost.
! Example
An invoice for 20 bearings at 3.3 French francs (FF) each is approved. The base currency is US dollars, and the exchange rate is currently 5 francs per dollar. At the point of receipt, the item price was only 3 francs, and the exchange rate was 6 francs per dollar. At receipt, the bearings were 3 FF = $0.50 each. At invoice approval, the bearings are 3.3 FF = $0.66 each. Thus, MAXIMO writes the following transaction of ISSUETYPE = INVOICE both to MATRECTRANS and to MATUSETRANS.
141
Chapter 4
Source of GL Code
Debit account established upon insertion of invoice line = PO line debit Account
Debit
($0.66-$0.50) x 20 = $3.20
Credit
($0.66-$0.50) x 20 = $3.20
Source of GL Code
PO line credit account = Company RBNI account
VARIANCES FOR SERVICES If the line item is a service, MAXIMO accounts for any change in the item cost by an entry to SERVRECTRANS. The accounts default as if you were inserting a PR line. Furthermore, if the service is associated with a work order, then MAXIMO updates the actual service cost for the work order. Service for which Charge to Store? = N
! Example
You receive an invoice for a service that required 2 hours at a rate of 330 French francs (FF) per hour. The base currency is US dollars, and the exchange rate is currently 5 francs per dollar. At the point of receipt, the item price was only 300 francs, and the exchange rate was 6 francs per dollar. At receipt, the hourly rate was 300 FF = $50. If there had been no exchange rate change, the hourly rate at invoice approval would have been 330 FF = $55. However, the exchange rate changed to 5 francs per dollar. Therefore, at invoice approval, the hourly rate was 330 FF = $66. Thus, MAXIMO writes the following transaction to SERVRECTRANS.
142
Financial Processes
Source of GL Code
1. If issued to a work order " work order GL account 2. If issued to equipment " Equipment GL account GL account of equipments location 3. If issued to a location " If only one piece of equipment at location, equipment GL account Location GL account
Debit
($66.00-$50.00) x 2 = $32.00
Credit
($66.00-$50.00) x 2 = $32.00
Source of GL Code
Service for which Charge to Store? = Y The debit account for the transaction to SERVRECTRANS is the rotating suspense account of the equipment that was serviced. Otherwise, this transaction works exactly as if the invoice is for a service where Charge to Store? = N. In addition, if UpdateInventory? = 1, MAXIMO will update the database inventory cost of the piece of rotating equipment.
143
Chapter 4
Transactions Resulting From the Distribute Costs Process

Recall the following from Distribute Costs. If (1) the invoice line had a PO line number specified, and (2) you had received the line, then you had to back out the first entry before distributing costs to another work order, location, piece of equipment, or GL account. At invoice approval, MAXIMO makes the corresponding entries to the GL. If the invoice line item is a material, the transaction will be written to MATRECTRANS; if the invoice line item is a service, the transaction will be written to SERVRECTRANS. Furthermore, since costs can only be distributed for material line items having Issue on Receipt? = Y, then the transaction is also written to MATUSETRANS. At the approve invoices stage, it may help to think of any lines that the user inserted in Distribute Costs as new invoice lines for which the receipt transaction is needed.
! Example
Suppose that originally, as a result of your receiving 20 bearings at $0.50 each, the following transaction was made to MATRECTRANS.
Source of GL Code
1111-111-111 (Purchase order line debit account)
Debit
20 x $0.50 = $10.00
Credit
20 x $0.50 = $10.00
Source of GL Code
3333-333-333 (Purchase order line credit account)
Later, you decided that 20% of the cost should be charged to account 2222-111-111 (perhaps two of the bearings went to a different location than planned). Thus, using the distribute costs process, you backed out the invoice line corresponding to that receipt. You then inserted two new lines to distribute the cost. Upon invoice approval, the following transactions will be written to MATRECTRANS. The account codes were typed in the Distribute Costs dialog box.
144
Financial Processes
Source of GL Code
Debit
-$10.00 -$10.00
Credit
Source of GL Code
Source of GL Code
Debit
$8.00 $8.00
Credit
Source of GL Code
Source of GL Code
2222-111-111 (Defaults as if receiving the item)
Debit
$2.00 $2.00
Credit
Source of GL Code
3333-333-333 (Defaults as if receiving the item)
Transactions Not Written to the General Ledger

Transaction for Accounts Payable System Upon invoice approval, in addition to the general ledger transactions above, MAXIMO writes a transaction of DOCUMENTTYPE = INVOICE to INVOICE. This transaction is for use with an external accounts payable system. The LINECOST is equal to the base currency equivalent of the number in the Invoice Total field in the Invoices application.
! Example
Approve an invoice for 20 bearings at $0.50 each, plus a tax of $0.75.
145
Chapter 4
Source of GL Code
Company AP suspense account
Debit
(20 x $0.50) + $0.75 = $10.75
Credit
(20 x $0.50) + $0.75 = $10.75
Source of GL Code
Company AP control account
The financial period and associated exchange rates are determined by value in the Entered Date field in the Invoices application.
146
CHAPTER 5 GL ACCOUNT TRACKING
OVERVIEW
MAXIMO is designed so that most users do not need to worry about which GL account codes to enter on the application. Once the accounts and associated codes have been set up in Chart of Accounts (or, in a few cases, specified on MAXIMO records), most GL account fields default to an account code or a merger of codes entered elsewhere in MAXIMO. Each account code or segment that you enter in Chart of Accounts via the options, or in GL fields in other MAXIMO applications, is validated against the account codes entered in the Chart of Accounts application. (In most cases, if you have authority, you can overwrite the default GL code.) The purpose of this chapter is to answer the question Where does the GL account code in this field or database column come from? For each application, the GL field information is divided into two sections: On-Screen Fields and Database.
The On-Screen Fields Section

The On-Screen Fields section names the GL field you see on the screen, or would see on the screen if the associated field were unhidden, and names the field in MAXIMO that is the source of the GL code in the field. If the source
147
Chapter 5
field itself has defaulted from another field, that field may be listed as the source of the source, and so on; if not, you can refer to the source field elsewhere in this chapter to find out its source. The information is presented in this format: Field Name (COLUMNNAME) Source field on source screen or dialog box Source field/screen etc.
! Example
The Debit GL Account field on the PR Lines tab: Debit GL Account (GLDEBITACCT) GL Control Account field (hidden) for storeroom location in the Inventory Control application.
The symbol used in this chapter can be read as comes from or which comes from or defaults to or which defaults to. Thus, reading left to right describes the path MAXIMO uses to fill in the on-screen GL field named at the left of or above the first arrow. The field named to the right of the last arrow meets one of the following criteria:
It is the field where the GL account code or segment was entered in MAXIMO, generally in the Chart of Accounts application. It is a field in another application in MAXIMO, which has its own section. Refer to that section if you want to trace the GL account code all the way back to its entry in Chart of Accounts or other ultimate source application.
Merging Account Codes

There are a number of instances in MAXIMO where the GL code in a field can come from more than one potential source field. If there are GL codes in more than one of the potential source fields, those codes are merged. When these codes merge, there is an order of priority for the multiple sources, so that when there are competing codes or segments of codes, MAXIMO knows which code or segment to use. The possible sources are listed in order of their priority in the potential merge. Codes or segments from higher-numbered sources take precedence over codes or segments from lower-numbered sources.
148
GL Account Tracking
! Example
The GL Account field in the Work Orders application: GL Account (GLACCOUNT) 1) Preventive Maintenance GL Account field manual entry (no default); 2) Equipment GL Account field (hidden) manual entry (no default); 3) Operating Locations GL Account field manual entry (no default).
The PM, Equipment, and Location fields on a work order provide possible links to the PM, equipment, and Operating locations records GL accounts. For any of those fields that are filled on the work order record, MAXIMO checks the corresponding records and obtains the GL accounts from the fields according to the priorities listed above1 through 3. For example, if GL accounts exist for all three, the PM GL account will take priority over both the equipment GL account and the location GL account. If there is no PM record (or no PM GL account), the equipment records GL account has next priority. If there is neither a PM GL account nor an equipment GL account, the location GL account will be used. The account inserted into the Work Orders GL Account field can be a combination, or merge, of the three reference accounts. If an account with higher priority is only partially defined (e.g., 2345-???-???) and an account of lower priority has defined segments where the higher priority account doesnt, then the segments from the account with lower priority will fill in the undefined segments in the higher priority account.
! Example
GL account codes specified on the PM record, equipment, and operating location records named in the Work Orders application: 2345-???-??? 6789-787-??? 5555-999-XYZ 2345-787-XYZ PM record GL account (priority 1) Equipment GL account (priority 2) Operating locations GL account (priority 3) Resulting merged work order GL account
149
Chapter 5
Intermediate Sources of Account Codes

There are several cases of GL fields for which there might or might not be one or more intermediate source fields between the on-screen field and its ultimate source. For example, the GL fields on a PO line would come from the PR line if there were a PR; otherwise, they would come directly from the source. Such possible intermediate sources are shown in parentheses.
! Example
The Debit GL Account field on the Inventory Control Transactions tab: Debit GL Account (GLDEBITACCT) Debit GL Account field on PO Lines tab (Debit GL Account field on PR Lines application) GL Control Account field (hidden) for storeroom location in the Inventory Control application.
On-Screen Fields and Hidden Fields

Most fields in MAXIMO applications are associated with a column in a database table. Although some fields in MAXIMO are calculated for display on the screen, (i.e., they have no associated database table column where the value is stored), all GL fields have associated database table columns. By using the standard screen views in MAXIMO, you can see some of the values from the GL-related columns in the database table. However, there are other GL-related fields that are not automatically visible; these fields are hidden by default. Although there is a database column in the table associated with the application, the data in that column is not displayed onscreen unless you use EditWindows to unhide the field.
The Database Section

The Database section provides the same information as the On-Screen Fields section, but provides database table and column names, rather than names of
150
GL Account Tracking
fields in applications or dialog boxes. The Database section presents table and column name information in this format: TABLENAME1.COLUMNNAME TABLENAME2.COLUMNNAME
RESOURCES Companies Application

On-Screen Fields In the Companies application, the GL account fields (RBNI, Suspense, and AP Control) default according to company type as specified in the Company Type field. RBNI (RBNIACC) RBNI field for Company Type on Company-Related Accounts dialog box in Chart of Accounts. Suspense (APSUSPENSEACC) AP Suspense field for Company Type on Company-Related Accounts dialog box in Chart of Accounts. AP Control (APCONTROLACC) AP Control field for Company Type on Company-Related Accounts dialog box in Chart of Accounts. Database COMPANIES.RBNIACC COMPANYACCDEF.RBNIACC
151
Chapter 5
COMPANIES.APSUSPENSEACC COMPANYACCDEF.APSUSPENSEACC COMPANIES.APCONTROLACC COMPANYACCDEF.APCONTROLACC
Tools Application
On-Screen Fields (Hidden) Both the tools GL accounts (tool resource codes) and the tools control accounts can be divided into two different types: internal and external. For the tools GL account, the tool resource code that you assign to Outside? = N becomes the default for the internal tools GL account, whereas the code that you assign to Outside? = Y becomes the default for the external tools GL account. As with the tools GL accounts (tool resource codes), there are internal and external tools control accounts. Thus, the tools control account code that you assign to Outside? = N becomes the default for the internal tools control account, whereas the codes that you assign to Outside? = Y become the defaults for the external tools control accounts. Furthermore, for the external tools control accounts, you can assign a unique default code for each vendor. If Outside? Field = N GL Account (GLACCOUNT) Tool Resource field for Outside? = N on Tool Resource Codes dialog box in Chart of Accounts. Control Account (CONTROLACC) Control Account field on Internal Tools Control Accounts dialog box in Chart of Accounts.
152
GL Account Tracking
If Outside? Field = Y GL Account (GLACCOUNT) Tool Resource field for Outside? = Y on Tool Resource Codes dialog box in Chart of Accounts. Control Account (CONTROLACC) Control Account field for Vendor on External Tools Control Accounts dialog box in Chart of Accounts. Database If Outside? Field = N TOOL.GLACCOUNT ACCOUNTDEFAULTS.GLDEFAULT (where DFLTGROUP = TOOLRESCODE and GROUPVALUE = N) direct entry (no default) TOOL.CONTROLACC ACCOUNTDEFAULTS.GLDEFAULT (where DFLTGROUP = INTTOOLREC, and GROUPVALUE = ALL) direct entry (no default) If Outside? Field = Y TOOL.GLACCOUNT ACCOUNTDEFAULTS.GLDEFAULT (where DFLTGROUP = TOOLRESCODE, and GROUPVALUE = Y) direct entry (no default) TOOL.CONTROLACC ACCOUNTDEFAULTS.GLDEFAULT (where DFLTGROUP = EXTOOLREC, and GROUPVALUE = vendor name) direct entry (no default)
153
Chapter 5
LABOR Labor Application

On-Screen Fields (Hidden) Labor records typically receive one set of default GL accounts if they are internal labor (Outside? = N), and another set if they are external labor (Outside? = Y). If Outside? Field = N GL Account (GLACCOUNT) Labor Resource field for Outside? = N on Labor Resource Codes dialog box in Chart of Accounts. Control Account (CONTROLACC) Control Account field for associated Work Location field on Internal Labor Control Accounts dialog box in Chart of Accounts. If Outside? Field = Y GL Account (GLACCOUNT) Labor Resource field for Outside? = Y on Labor Resource Codes dialog box in Chart of Accounts. Control Account (CONTROLACC) Control Account field for associated Vendor field on Internal Labor Control Accounts dialog box in Chart of Accounts. Database If Outside? Field = N LABOR.GLACCOUNT ACCOUNTDEFAULTS.GLDEFAULT (where DFLTGROUP = LABRESCODE and GROUPVALUE = N) direct entry (no default)
154
GL Account Tracking
LABOR. CONTROLACC ACCOUNTDEFAULTS.GLDEFAULT (where DFLTGROUP = INTLABREC and GROUPVALUE = work location) direct entry (no default) If Outside? Field = Y LABOR.GLACCOUNT ACCOUNTDEFAULTS.GLDEFAULT (where DFLTGROUP = LABRESCODE and GROUPVALUE = Y) direct entry (no default) LABOR.CONTROLACC ACCOUNTDEFAULTS.GLDEFAULT (where DFLTGROUP = EXLABREC and GROUPVALUE = vendor name) direct entry (no default)
Labor Reporting
The Labor Reporting application allows you to report actual labor usage, and to see the transaction records of previously reported actual labor usage, whether reported via this application or via the Labor subtab on the Actuals tab in Work Order Tracking. Both the Debit GL Account field and the Credit GL Account field are editable when reporting labor usage, prior to using Save. All fields are read-only once the transaction is recorded. The GL fields default in the same manner for all three work types: WORK, NON-WORK, and OT-REF. Type WORK includes TRAV and WMATL, and type NON-WORK includes SICK and VAC. To report usage of type WORK, you must enter a debit GL account, a work order number, an equipment number, or an operating location. (If you enter any of the last three, the debit GL account defaults.) You can report NON-WORK and OTREF usage (sick or vacation time or overtime refused) without entering information in the following fields: Debit GL Account, Work Order, Equipment and Operating Location fields. If you leave the Work Order, Equipment and
155
Chapter 5
Operating Location fields blank, unless you specify a debit GL account, the Debit GL Account field remains blank. NOTE: Any MAXIMO transaction that does not have both a debit account and a credit account is ignored by the Application Programming Interfaces (APIs) and is not passed to the external financial system. On-Screen Fields Debit GL Account (GLDEBITACCT) 1) GL Account field (hidden) in Labor Labor Resource field (for Outside? = N or for Outside? = Y) on Labor Resource Codes dialog box in Chart of Accounts; 2) GL Account field in Work Orders (see source description in Work Order Tracking section, page 181); 3) GL Account field (hidden) in Equipment; 4) GL Account field in Operating Locations. Credit GL Account (GLCREDITACCT) 1) Control Account field (hidden) in Labor Control Account field for Work Location on Internal Labor Control Accounts dialog box in Chart of Accounts; or 2) Control Account field for Vendor on External Labor Control Accounts dialog box in Chart of Accounts; or 3) Debit GL Account field from purchase order line on PO Lines screen in Purchase Orders. Database LABTRANS.GLDEBITACCT 1) LABOR.GLACCOUNT ACCOUNTDEFAULTS.GLDEFAULT (where DFLTGROUP = LABRESCODE and GROUPVALUE = N or GROUPVALUE = Y) 2) WORKORDER.GLACCOUNT
156
GL Account Tracking
3) EQUIPMENT.GLACCOUNT 4) LOCATIONS.GLACCOUNT LABTRANS.GLCREDITACCT LABOR.CONTROLACC ACCOUNTDEFAULTS.GLDEFAULT (where DFLTGROUP = INTLABREC and GROUPVALUE = work location) or ACCOUNTDEFAULTS.GLDEFAULT (where DFLTGROUP = EXLABREC and GROUPVALUE = vendor name) or If LABTRANS PONUM is not null, LABTRANS.GLCREDITACCT POLINE.DEBITGLACCT (where LABTRANS.PONUM = POLINE.PONUM and LABTRANS.POLINENUM = POLINE.POLINENUM)
INVENTORY Inventory Control Application

The eight accounts associated with inventory records are used for inventory transactions, for material receipt transactions, and for material usage transactions. To establish the default inventory GL account (item resource) code, use the Inventory Resource Code dialog box in Chart of Accounts. To establish the default account codes for the remaining seven account fields, use the Inventory-Related Accounts dialog box in Chart of Accounts. Alternatively, when adding a storeroom, you can specify the default account codes on the Add Storeroom Location dialog box in Inventory Control (the GL Account field is hidden by default on this dialog box). These seven account fields are shared between the Add Storeroom Location and the Inventory-Related Accounts dialog boxes, so both dialog boxes have exactly the same codes in these seven fields. Thus, the Inventory-Related Accounts dialog box and the Add
157
Chapter 5
Storeroom Location dialog box provide different ways of entering data in the same database column in the Locations database table. In the Operating Locations application, we recommend leaving all of the last seven GL account fields hidden. (The fields are hidden there because they relate to storeroom locations, not operating locations.) Four accounts are directly associated with the inventory record itself. Thus, columns for these four accounts exist in the Inventory database table. The four account in Inventory are the inventory GL account, the inventory control account, the shrinkage cost account and the inventory cost adjustment account. All of these except the inventory GL account have columns in the Locations table, also. Codes assigned to all four of these accounts can be edited by unhiding the fields in the Inventory Control application. Editing the code by using the Inventory Control application changes the code for only the item/location record showing on the screen.
! Example
Suppose that all items in the Central Storeroom have the default inventory control account of 6600-800-800. Item #1001 is showing in the Inventory Control application, and you edit the code showing in the Control Account field to 6600-800-801. As a result, item #1001 in Central now has control account code 6600-800-801, but other items in Central still have control account code 6600-800-800.
The remaining four inventory-related accounts are stored in the Locations database table, and not in the Inventory table. The accounts in the Locations table are the receipts price variance account, the invoice price variance account, the currency variance account and the purchase variance account.
Accounts Only in the Inventory Table

The inventory GL account (item resource code) is associated with the item/location record (i.e., the Inventory table). To establish the default inventory
158
GL Account Tracking
GL account (item resource) code, use the Inventory Resource Code dialog box in Chart of Accounts. The codes on the Inventory Resource Code dialog box vary by item type. There is also an (Inventory) GL Account field hidden in the Inventory Control application. You can unhide this field and edit the account code to make the code specific to an item/location record. On-Screen Fields (Hidden) GL Account (GLACCOUNT) Inventory Resource field for the item type on Inventory Resource Codes dialog box in Chart of Accounts. (This item resource code is usually only one component of the Inventory GL Account field.) Database INVENTORY.GLACCOUNT ACCOUNTDEFAULTS.GLDEFAULT (where DFLTGROUP = INVRESCODE) direct entry (no default)
Accounts Both in the Inventory Table and in the Locations Table

The next three fields are associated with the item/location record (i.e., the Inventory database table and the Locations table). Like the field for the inventory GL account, the fields for these accounts hidden in the Inventory Control application. If you unhide any of these fields, you can edit the codes in those fields to make them item-specific. Editing the account codes in the Inventory Control application changes the account for that item/location record only, and not for all items in that inventory location.
159
Chapter 5
On-Screen Fields (Hidden) GL Control Account (CONTROLACC) Inventory Control Account field both on the Inventory-Related Accounts dialog box in Chart of Accounts and on the Add Storeroom Location dialog box in Inventory Control. GL Shrinkage Account (SHRINKAGEACC) Shrinkage Cost Account field both on the Inventory-Related Accounts dialog box in Chart of Accounts and on the Add Storeroom Location dialog box in Inventory Control. GL Cost Adjustment Account (INVCOSTADJACC) Inventory Cost Adjustment Account field both on the Inventory-Related Accounts dialog box in Chart of Accounts and on the Add Storeroom Location dialog box in Inventory Control. Database INVENTORY.CONTROLACC LOCATIONS.CONTROLACC direct entry (no default) INVENTORY.SHRINKAGEACC LOCATIONS.SHRINKAGEACC direct entry (no default) INVENTORY.INVCOSTADJACC LOCATIONS.INVCOSTADJACC direct entry (no default)
Accounts in Only the Locations Table

The next four fields are not associated with the Inventory table (i.e., the item/location record), but only with the Locations table. You can both view and edit these four fields both on the Add Storeroom Location dialog box in Inventory Control, and on the Inventory-Related Accounts dialog box in Chart of Accounts. These four fields are shared between the Add Storeroom Location and the Inventory-Related Accounts dialog boxes, so both dialog boxes have exactly the same codes in these four fields.
160
GL Account Tracking
On-Screen Fields Receipts Price Variance Account (RECEIPTVARACC) Receipts Price Variance Account field both on the Inventory-Related Accounts dialog box in Chart of Accounts and on the Add Storeroom Location dialog box in Inventory Control. Invoice Price Variance Account (INVOICEVARACC) Invoice Price Variance Account field both on the Inventory-Related Accounts dialog box in Chart of Accounts and on the Add Storeroom Location dialog box in Inventory Control. Currency Variance Account (CURVARACC) Currency Variance Account field both on the Inventory-Related Accounts dialog box in Chart of Accounts and on the Add Storeroom Location dialog box in Inventory Control. Purchase Variance Account (PURCHVARACC) Purchase Variance Account field both on the Inventory-Related Accounts dialog box in Chart of Accounts and on the Add Storeroom Location dialog box in Inventory Control. NOTE: The purchase variance account is not used for any MAXIMO transactions. Database LOCATIONS.RECEIPTVARACC direct entry (no default) LOCATIONS.INVOICEVARACC direct entry (no default) LOCATIONS.CURVARACC direct entry (no default) LOCATIONS.PURCHVARACC direct entry (no default)
161
Chapter 5
Inventory Control Options

Issue Current Item
See Issues and Transfers Issues Mode (page 172) for a description of the sources of the GL fields on the Issue Current Item dialog box. For both issues and returns, the GL account fields on the Issue Current Item dialog box default in the same way that the GL account fields default in the Issues and Transfers application.
Transfer Current Item

See Issues and Transfers Transfer Out Mode (page 174) for a description of the sources of the GL fields on the Transfer Current Item dialog box.
Adjust Physical Count

The Adjust Physical Count option writes a physical count adjustment transaction (PCOUNTADJ) to the Inventory Transactions table. The default GL field sources are described in the Inventory Control Transactions section (page 164).
Reconcile Balances
The Reconcile Balances option creates a current balance adjustment (CURBALADJ) transaction. See the next section, Adjust Current Balance.
Adjust Current Balance

The Adjust Current Balance and Reconcile Balances options create a CURBALADJ transaction. The account in the Control GL Account field is used as the debit account; the account in the Shrinkage Cost Account field is used as the credit account. See the Inventory Control Transactions section (page 164) for information on the sources of these account codes.
162
GL Account Tracking
Adjust Standard Cost

The Adjust Standard Cost option creates a STDCSTADJ transaction. The account in the Control GL Account field is used as the debit account; the account in the Cost Adjustment GL Account field is used as the credit account. See the Inventory Control Transactions section (page 164) for information on the sources of these account codes.
Adjust Average Cost

The Adjust Average Cost option creates a AVGCSTADJ transaction. The account in the Control GL Account field is used as the debit account; the account in the Cost Adjustment GL Account field is used as the credit account. See the Inventory Control Transactions section (page 164) for information on the sources of these account codes.
Adjust Capitalized Cost

The Adjust Capitalized Cost option creates a CAPCSTADJ transaction. When adjusting the Capitalized? value from N to Y, the account in the Capital GL Account field is used as the debit account; the account in the Control GL Account field is used as the credit account. When adjusting the Capitalized? value from Y to N, the account in the Control GL Account field is used as the debit account; the account in the Capital GL Account field is used as the credit account. See the Inventory Control Transactions (page 164) section for information on the sources of these account codes.
Add Storeroom Location

The Add Storeroom Location dialog box allows you to create a new location record. The dialog box displays all default accounts associated with the storeroom, as set up in Chart of Accounts, and discussed previously in the Inventory Control section (page 157).
163
Chapter 5
NOTE: If you are creating a new storeroom location, you can specify all default accounts for the new location record via the Add Storeroom Location dialog box, just as you normally would on the InventoryRelated Accounts dialog box in Chart of Accounts. See the Inventory Control section (page 157), for more information.
Inventory Control Transactions

The Transactions tab in Inventory Control lists inventory transaction records. Most of these are GL transactions, with a debit GL account and a credit GL account. Many of the transactions are created by one of the Inventory options. For most of the options, the Debit GL Account and Credit GL Account fields on the option dialog boxes correspond to the fields for the resulting transaction, so have the same default sources.
Transaction Class Field = Receipts, for Transfer Transactions

You can view transaction records for transfers on the Transactions tab in Inventory, just as you can view them in Issues and Transfers. The sources of the GL fields for these transaction records are described in the Issues and Transfers Transfer sections (pages 174, 175). The Issue Type for this transaction is TRANSFER, which is written to the database table, but does not appear in the Issue Type field on screen.
Transaction Class Field = Receipts, for PO Material Receipt Transactions

For Storeroom Purchases (Issue on Receipt? = N) From Outside Vendor On-Screen Fields Debit GL Account (GLDEBITACCT) Debit GL Account field on PO Lines tab (Debit GL Account field on PR Lines tab) GL Control Account field (hidden) for storeroom location in the Inventory Control application.
164
GL Account Tracking
Credit GL Account (GLCREDITACCT) Credit GL Account field on PO Lines tab (Credit GL Account field on PR Lines tab) RBNI field for vendor in Companies RBNI field for Company Type for vendor on Company-Related Accounts dialog box in Chart of Accounts. Database MATRECTRANS.GLDEBITACCT POLINE.GLDEBITACCT (PRLINE.GLDEBITACCT) INVENTORY.CONTROLACC MATRECTRANS.GLCREDITACCT POLINE.GLCREDITACCT (PRLINE.GLCREDITACCT) COMPANIES.RBNIACC COMPANYACCDEF.RBNIACC (where TYPE = vendor companys type) For Storeroom Purchases (Issue on Receipt? = N) From Internal Vendor (Another Storeroom) On-Screen Fields Debit GL Account (GLDEBITACCT) Debit GL Account field on PO Lines tab (Debit GL Account field on PR Lines tab) GL Control Account field (hidden) for receiving storeroom location Inventory Control Account field on the Inventory-Related Accounts dialog box in Chart of Accounts. Credit GL Account (GLCREDITACCT) Credit GL Account field on PO Lines tab (Credit GL Account field on PR Lines tab) GL Control Account field (hidden) for vendor storeroom location Inventory Control Account field on the Inventory-Related Accounts dialog box in Chart of Accounts.
165
Chapter 5
Database MATRECTRANS.GLDEBITACCT POLINE.GLDEBITACCT (PRLINE.GLDEBITACCT) INVENTORY.CONTROLACC (of receiving storeroom location) MATRECTRANS.GLCREDITACCT POLINE.GLCREDITACCT (PRLINE.GLCREDITACCT) INVENTORY.CONTROLACC (of vendor storeroom location) For Direct Issue Purchases (Issue on Receipt? = Y) From Outside Vendor NOTE: Direct issue purchase requisitions and purchase orders can only be created for an external vendor. The sources for service receipt GL codes are the same, except that no item resource code (Inventory GL Account field) is involved with services. On-Screen Fields Debit GL Account (GLDEBITACCT) Debit GL Account field on PO Lines tab (Debit GL Account field on PR Lines tab) 1) GL Account field (hidden) in the Inventory Control applicaiton Inventory Resource field for item Type field on Inventory Resource Codes dialog box in Chart of Accounts; 2) Work Order GL Account field; 3) Equipment GL Account field (hidden); 4) Location GL Account field. Credit GL Account (GLCREDITACCT) Credit GL Account field on PO Lines tab (Credit GL Account field on PR Lines tab) RBNI field for vendor in Companies RBNI field for Company Type field (for vendor on PO line) on Company-Related Accounts dialog box in Chart of Accounts.
166
GL Account Tracking
Database MATRECTRANS.GLDEBITACCT POLINE.GLDEBITACCT (PRLINE.GLDEBITACCT) 1) INVENTORY.GLACCOUNT ACCOUNTDEFAULTS.GLDEFAULT (where DFLTGROUP = INVRESCODE and GROUPVALUE = item type for item on PO line) 2) WORKORDER.GLACCOUNT 3) EQUIPMENT.GLACCOUNT 4) LOCATIONS.GLACCOUNT MATRECTRANS.GLCREDITACCT POLINE.GLCREDITACCT (PRLINE.GLCREDITACCT) COMPANIES.RBNIACC COMPANYACCDEF.RBNIACC (where TYPE = vendor companys type)
Transaction Class Field = Inventory, Type Field = INSERTITEM

Insertion of a master item or item/location record is not a financial transaction. Item insertion transactions do not result in any GL account codes being written to the Debit GL Account and Credit GL Account fields in the transaction record.
Transaction Class Field = Inventory, Type Field = PCOUNTADJ

A physical count adjustment writes a transaction to the INVTRANS table, and appears in the Inventory Transactions application. Since the transaction uses the same account for the debit side and the credit side, the transaction has no net effect on the general ledger. On-Screen Fields Debit GL Account (GLDEBITACCT) GL Shrinkage Account field (hidden) in the Inventory Control application Shrinkage Cost Account field on the Inventory-Related Accounts dialog box in Chart of Accounts.
167
Chapter 5
Credit GL Account (GLCREDITACCT) GL Shrinkage Account field (hidden) in the Inventory Control application Shrinkage Cost Account field on the Inventory-Related Accounts dialog box in Chart of Accounts. Database INVTRANS.GLDEBITACCT INVENTORY.SHRINKAGEACC LOCATIONS.SHRINKAGEACC INVTRANS.GLCREDITACCT INVENTORY.SHRINKAGEACC LOCATIONS.SHRINKAGEACC
Transaction Class Field = Inventory, Type Field = CURBALADJ

When you use the Adjust Current Balance option or the Reconcile Balances option, you create a current balance adjustment (CURBALADJ) transaction in the Inventory Transactions (INVTRANS) table. On-Screen Fields Debit GL Account (GLDEBITACCT) GL Control Account field (hidden) in the Inventory Control application Inventory Control Account field on the Inventory-Related Accounts dialog box in Chart of Accounts. Credit GL Account (GLCREDITACCT) GL Shrinkage Account field (hidden) in the Inventory Control application Shrinkage Cost Account field on the Inventory-Related Accounts dialog box in Chart of Accounts. Database INVTRANS.GLDEBITACCT INVENTORY.CONTROLACC LOCATIONS.CONTROLACC INVTRANS.GLCREDITACCT INVENTORY.SHRINKAGEACC LOCATIONS.SHRINKAGEACC
168
GL Account Tracking
Transaction Class Field = Inventory, Type Field = AVGCSTADJ

Using the Adjust Average Cost option writes an AVGCSTADJ (average cost adjustment) transaction to the Inventory Transactions (INVTRANS) table. On-Screen Fields Debit GL Account (GLDEBITACCT) GL Control Account field (hidden) in the Inventory Control application Inventory Control Account field on the Inventory-Related Accounts dialog box in Chart of Accounts. Credit GL Account (GLCREDITACCT) GL Cost Adjustment Account field (hidden) in the Inventory Control application Inventory Cost Adjustment Account field on the Inventory-Related Accounts dialog box in Chart of Accounts. Database INVTRANS.GLDEBITACCT INVENTORY.CONTROLACC LOCATIONS.CONTROLACC INVTRANS.GLCREDITACCT INVENTORY.INVCOSTADJACC LOCATIONS.INVCOSTADJACC
Transaction Class Field = Inventory, Type Field = STDCSTADJ

Using the Adjust Standard Cost option writes a STDCSTADJ (standard cost adjustment) transaction to the Inventory Transactions (INVTRANS) table. On-Screen Fields Debit GL Account (GLDEBITACCT) GL Control Account field (hidden) in the Inventory Control application Inventory Control Account field on the Inventory-Related Accounts dialog box in Chart of Accounts.
169
Chapter 5
Credit GL Account (GLCREDITACCT) GL Cost Adjustment Account field (hidden) in the Inventory Control application Inventory Cost Adjustment Account field on the Inventory-Related Accounts dialog box in Chart of Accounts. Database INVTRANS.GLDEBITACCT INVENTORY.CONTROLACC LOCATIONS.CONTROLACC INVTRANS.GLCREDITACCT INVENTORY.INVCOSTADJACC LOCATIONS.INVCOSTADJACC
Transaction Class Field = Inventory, Type Field = CAPCSTADJ

When Adjusting From Capitalized to Noncapitalized On-Screen Fields Debit GL Account (GLDEBITACCT) Inventory Control Account field on the Inventory-Related Accounts dialog box in Chart of Accounts. Credit GL Account (GLCREDITACCT) read-only Capital GL Account field on the Adjust Capitalized Cost dialog box in Inventory Control GL Control Account field (hidden) in Inventory Control manual entry on unhidden field; or account code manually entered on Adjust Capitalized Cost dialog box if there was a previous transaction from noncapitalized to capitalized. (In that earlier transaction from noncapitalized to capitalized, the code you entered in the Capital GL Account field was written to the GL Control Account field on the item/location record.) Database INVTRANS.GLDEBITACCT LOCATIONS.CONTROLACC
170
GL Account Tracking
INVTRANS.GLCREDITACCT INVENTORY.CONTROLACC manual entry (no default) When Adjusting From Noncapitalized to Capitalized On-Screen Fields Debit GL Account (GLDEBITACCT) manually entered Capital GL Account field on the Adjust Capitalized Cost dialog box in Inventory Control. Credit GL Account (GLCREDITACCT) GL Control Account field (hidden) in the Inventory Control application Inventory Control Account field on the Inventory-Related Accounts dialog box in Chart of Accounts. Database INVTRANS.GLDEBITACCT manual entry on Adjust Capitalized Cost dialog box (no default) INVTRANS.GLCREDITACCT INVENTORY.CONTROLACC LOCATIONS.CONTROLACC
Transaction Class Field = Inventory, Type Field = STDRECADJ

When standard costing is being used, this transaction can be created as a secondary transaction to a material receipt transaction, when the receipt price differs from the standard cost. On-Screen Fields Debit GL Account (GLDEBITACCT) Receipts Price Variance Account field for storeroom location Receipts Price Variance Account field on the Inventory-Related Accounts dialog box in Chart of Accounts.
171
Chapter 5
Credit GL Account (GLCREDITACCT) GL Control Account field (hidden) in the Inventory Control application Inventory Control Account field on the Inventory-Related Accounts dialog box in Chart of Accounts. Database INVTRANS.GLDEBITACCT LOCATIONS.RECEIPTVARACC INVTRANS.GLCREDITACCT INVENTORY.CONTROLACC LOCATIONS.CONTROLACC
Issues and Transfers Issues Mode

In Issues and Transfers you can both create transactions (i.e., issue or transfer an item) and view existing transactions (i.e., records of previous issues and transfers). The sources of the on-screen fields are the same in either case. If you are viewing past transactions, you are viewing records stored in a database table. If you are creating (inserting) a transaction, the on-screen fields can come from a variety of tables; they are not yet stored in a table associated specifically with the Issues and Transfers application. The Database section for Issues and Transfers lists the transaction table and column name for the associated onscreen field, (i.e., the table in which the issue or transaction was recorded, or will be recorded). On-Screen Fields, Issue Type of Issue Debit GL Account (GLDEBITACCT) 1) GL Account field (hidden) in the Inventory Control application Inventory Resource field for the Item Type on the Inventory Resource Codes dialog box in Chart of Accounts (this would typically be one segment only of the GL Debit Account field); 2) GL Account field in Work Orders, if work order number specified; 1) GL Account field in Preventive Maintenance, if based on PM record; 2) GL
172
GL Account Tracking
Account field in Equipment (hidden); 3) GL Account field in Operating Locations; 3) GL Account field in Equipment (hidden); 4) GL Account field in Operating Locations. Credit GL Account (GLCREDITACCT) GL Control Account field (hidden) in the Inventory Control application. Database, Issue Type of Issue MATUSETRANS.GLDEBITACCT 1) INVENTORY.GLACCOUNT ACCOUNTDEFAULTS.GLDEFAULT (where DFLTGROUP = INVRESCODE) 2) WORKORDER.GLACCOUNT 1) PM.GLACCOUNT; 2) EQUIPMENT.GLACCOUNT; 3) LOCATIONS.GLACCOUNT 3) EQUIPMENT.GLACCOUNT 4) LOCATIONS.GLACCOUNT MATUSETRANS.GLCREDITACCT INVENTORY.CONTROLACC LOCATIONS.CONTROLACC On-Screen Fields, Issue Type of Return Debit GL Account (GLDEBITACCT) Credit GL Account on Select Items for Return dialog box for selected item. Credit GL Account (GLCREDITACCT) Debit GL Account on Select Items for Return dialog box for selected item. Database, Issue Type of Return MATUSETRANS.GLDEBITACCT MATUSETRANS.GLCREDITACCT for the items issue transaction.
173
Chapter 5
MATUSETRANS.GLCREDITACCT MATUSETRANS.GLDEBITACCT for the items issue transaction.
Issues and Transfers Transfer Out Mode

On-Screen Fields Debit GL Account (GLDEBITACCT) If in response to an internal purchase order, the Debit GL Account field on the PO Lines tab (see the Purchasing section on page 184 for tracing the PO lines GL fields sources); otherwise, GL Control Account field (hidden) in the Inventory Control application for the to location Inventory Control Account field on the InventoryRelated Accounts dialog box in Chart of Accounts. Credit GL Account (GLCREDITACCT) If in response to an internal purchase order, the Credit GL Account field on the PO Lines tab(see the Purchasing section on page 184 for tracing the PO lines GL fields sources); otherwise, GL Control Account field (hidden) in the Inventory Control application for from location Inventory Control Account field on the Inventory-Related Accounts dialog box in Chart of Accounts. Database MATRECTRANS.GLDEBITACCT POLINE.GLDEBITACCT, if in response to an internal purchase order; otherwise, INVENTORY.CONTROLACC for to location LOCATIONS.CONTROLACC MATRECTRANS.GLCREDITACCT POLINE.GLCREDITACCT, if in response to an internal purchase order; otherwise,
174
GL Account Tracking
INVENTORY.CONTROLACC for from location LOCATIONS.CONTROLACC
Issues and Transfers Transfer In Mode

On-Screen Fields Debit GL Account (GLDEBITACCT) If in response to an internal purchase order, the Debit GL Account field on the PO line (see the Purchasing section on page 184 for tracing the PO lines GL fields sources); otherwise, GL Control Account field (hidden) in the Inventory Control application for to location Inventory Control Account field on the Inventory-Related Accounts dialog box in Chart of Accounts. Credit GL Account (GLCREDITACCT) If in response to an internal purchase order, the Credit GL Account field on the PO line (see the Purchasing section on page 184 for tracing the PO lines GL fields sources); otherwise, GL Control Account field (hidden) in the Inventory Control application for the from location GL Control Account field (hidden) in Operating Locations for the from location Inventory Control Account field on the Inventory-Related Accounts dialog box in Chart of Accounts. Database MATRECTRANS.GLDEBITACCT POLINE.GLDEBITACCT, if in response to an internal purchase order; otherwise, INVENTORY.CONTROLACC for to location LOCATIONS.CONTROLACC
175
Chapter 5
MATRECTRANS.GLCREDITACCT POLINE.GLCREDITACCT, if in response to an internal purchase order; otherwise, INVENTORY.CONTROLACC for from location LOCATIONS.CONTROLACC
EQUIPMENT Equipment Application

On-Screen Fields (Hidden) You must unhide the GL Account field on an equipment record in order to enter an account code. The Rotating Suspense Account field will only contain a code when the equipment is rotating, (i.e., an item number is specified on the equipment record). GL Account (GLACCOUNT) manual entry (no default). Rotating Suspense Account (ROTSUSPACCT) Global Rotating Suspense Account field on the Inventory-Related Accounts dialog box in Chart of Accounts. Database EQUIPMENT.GLACCOUNT manual entry (no default) EQUIPMENT.ROTSUSPACCT ACCOUNTDEFAULTS.GLDEFAULT (where DFLTGROUP = INVRELACC and GROUPVALUE = ROTSUSPACCT)
176
GL Account Tracking
Move/Modify Dialog Box

When you use the Move/Modify dialog box to move a piece of equipment between operating or other non-inventory locations, you create an equipment move transaction to EQTRANS. Although this equipment move transaction uses Debit GL Account and Credit GL Account fields, it is not a general ledger transaction and has no financial implications. If, however, the move is to an inventory location, you not only create the equipment move transaction, but also a financial transaction. The equipment move transaction, which has no financial implications, is written to EQTRANS. The financial transaction is written to MATRECTRANS. Moving Equipment Between Operating or Other Non-Storeroom Locations You can see the on-screen fields for an equipment move transaction on the Move/Modify Equipment dialog box. On-Screen Fields Debit GL Account (GLDEBITACCT) 1) GL Account field in Equipment (hidden); 2) GL Account field in Operating Locations for the destination or to location. Credit GL Account (GLCREDITACCT) 1) GL Account field in Equipment (hidden); 2) GL Account field in Operating Locations for the source or from location. Database Again, these transactions in EQTRANS are not financial transactions, but only equipment move transactions. EQTRANS.GLDEBITACCT 1) EQUIPMENT.GLACCOUNT 2) LOCATIONS.GLACCOUNT for to location
177
Chapter 5
EQTRANS.GLCREDITACCT 1) EQUIPMENT.GLACCOUNT 2) LOCATIONS.GLACCOUNT for from location Moving Rotating Equipment From a Non-Storeroom Location to a Storeroom or Other Inventory-Type Location Again, this move to an inventory location results in not only an equipment move transaction, but also a financial transaction. You can see the debit and credit accounts for the equipment move transaction in the Move/Modify Equipment dialog box. This equipment move transaction, which has no financial implications, is written to EQTRANS. You can both see and edit the debit and credit accounts for the financial transaction in the subsequent Specify GL Accounts for Move to an Inventory Location dialog box. The financial transaction is written to MATRECTRANS. On-Screen Fields On the Move/Modify Equipment dialog box (equipment move transaction): Debit GL Account (GLDEBITACCT) 1) GL Account field in Equipment (hidden); 2) GL Account field in Operating Locations for the destination or to location. Credit GL Account (GLCREDITACCT) 1) GL Account field in Equipment (hidden); 2) GL Account field in Operating Locations for the source or from location. On the Specify GL Accounts dialog box (financial transaction): Debit GL Account (GLDEBITACCT) Inventory Control Account field for item at destination location in the Inventory Control application (hidden) Inventory Control Account field on the Inventory-Related Accounts dialog box in Chart of Accounts for the associated inventory-type location.
178
GL Account Tracking
NOTE: If the to location is a labor or courier location, the Debit GL Account field defaults to the Control Account field of the transit location record associated with the labor or courier. Credit GL Account (GLCREDITACCT) Rotating Suspense Account field (hidden) in Equipment Global Rotating Suspense Account field on the Inventory-Related Accounts dialog box in Chart of Accounts. Database Again, these transactions in EQTRANS are not financial transactions, but only equipment move transactions. EQTRANS.GLDEBITACCT 1) EQUIPMENT.GLACCOUNT 2) LOCATIONS.GLACCOUNT for to location EQTRANS.GLCREDITACCT 1) EQUIPMENT.GLACCOUNT 2) LOCATIONS.GLACCOUNT for from location These transactions to MATRECTRANS are financial transactions. MATRECTRANS.GLDEBITACCT INVENTORY.CONTROLACC for item at destination location LOCATIONS.CONTROLACC MATRECTRANS.GLCREDITACCT EQUIPMENT.ROTSUSPACCT ACCOUNTDEFAULTS.GLDEFAULT (where DFLTGROUP = INVRELACC and GROUPVALUE = ROTSUSPACCT)
Equipment Move History Dialog Box

This dialog box shows the equipment move transactions created by moves made via the Move/Modify Equipment option. Thus the GL Debit Account and GL Credit Account field sources are the same as for the Move/Modify Equipment
179
Chapter 5
option for moves between operating locations, discussed in the previous section, Move/Modify Dialog Box.
Operating Locations Application

On-Screen Field GL Account (GLACCOUNT) manual entry (no default). Database LOCATIONS.GLACCOUNT manual entry (no default) NOTE: Besides the GLACCOUNT column, the LOCATIONS database table also contains the following columns: CONTROLACC, PURCHVARACC, INVOICEVARACC, CURVARACC, SHRINKAGEACC, INVCOSTADJACC, and RECEIPTVARACC. These database columns are relevant only to inventory-type locations. Sources for the GL codes in these columns are described in the Inventory section (page 157).
PREVENTIVE MAINTENANCE
Any GL account (segment) entered in the Preventive Maintenance application will be used on work orders generated from the PM record. On-Screen Field GL Account (GLACCOUNT) manual entry (no default). Database PM.GLACCOUNT manual entry (no default)
180
GL Account Tracking
WORK ORDERS Work Order Tracking

On-Screen Fields GL Account (GLACCOUNT) 1) Preventive Maintenance GL Account field manual entry (no default); 2) Equipment GL Account field (hidden) manual entry (no default); 3) Operating Locations GL Account field manual entry (no default). The account inserted into the Work Orders GL Account field can be a combination, or merge, of the three reference accounts.
! Example
2345-???-??? 6789-787-??? 5555-999-XYZ 2345-787-XYZ
PM GL account (priority 1) Equipment GL account (priority 2) Operating locations GL account (priority 3) Resulting merged work order GL account
For more information on the merging of account codes, see the On-Screen Fields section (page 147). Database WORKORDER.GLACCOUNT 1) PM.GLACCOUNT 2) EQUIPMENT.GLACCOUNT 3) LOCATIONS.GLACCOUNT
Quick Reporting and Work Manager

The GL Account field in these applications, whether hidden or not, defaults just as it does in Work Order Tracking.
181
Chapter 5
Actual Tool Usage

On-Screen Fields Internal Tools (If Outside? Field = N) Debit GL Account (GLDEBITACCT) 1) GL Account field (hidden) on Tools subtab Tool Resource field for Outside? = N on Tool resource Codes dialog box in Chart of Accounts; 2) GL Account field in Work Orders (see source description in Work Order Tracking section on page 181). Credit GL Account (GLCREDITACCT) Control Account field (hidden) on Tools subtab Control Account field on Internal Tools Control Account dialog box in Chart of Accounts. External Tools (If Outside? Field = Y) Debit GL Account (GLDEBITACCT) 1) GL Account field (hidden) on Tools subtab Tool Resource field for Outside? = Y on Tool resource Codes dialog box in Chart of Accounts; 2) GL Account field in Work Orders (see source description in Work Order Tracking section on page 181). Credit GL Account (GLCREDITACCT) Control Account field (hidden) on Tools subtab Control Account field for Vendor on External Tools Control Accounts dialog box in Chart of Accounts. Database Internal Tools (If Outside? Field = N) TOOLTRANS.GLDEBITACCT
182
GL Account Tracking
1) TOOL.GLACCOUNT ACCOUNTDEFAULTS.GLDEFAULT (where DFLTGROUP = TOOLRESCODE and GROUPVALUE = N) direct entry (no default) 2) WORKORDER.GLACCOUNT a) PM.GLACCOUNT b) EQUIPMENT.GLACCOUNT c) LOCATIONS.GLACCOUNT TOOLTRANS.GLCREDITACCT TOOL.CONTROLACC ACCOUNTDEFAULTS.GLDEFAULT (where DFLTGROUP = INTTOOLREC and GROUPVALUE = ALL) direct entry (no default) External Tools (If Outside? Field = Y) TOOLTRANS.GLDEBITACCT 1) TOOL.GLACCOUNT ACCOUNTDEFAULTS.GLDEFAULT (where DFLTGROUP = TOOLRESCODE and GROUPVALUE = Y) direct entry (no default) 2) WORKORDER.GLACCOUNT a) PM.GLACCOUNT b) EQUIPMENT.GLACCOUNT c) LOCATIONS.GLACCOUNT TOOLTRANS.GLCREDITACCT TOOL.CONTROLACC ACCOUNTDEFAULTS.GLDEFAULT (where DFLTGROUP = EXTOOLREC and GROUPVALUE = vendor name) direct entry (no default)
Actual Labor Usage

The GL fields for actual labor usage that is reported or viewed in Work Orders default just as they do when the usage is recorded or viewed in Labor Reporting. See the Labor Reporting section (page 155) for GL field source information.
183
Chapter 5
Actual Material Usage

The GL fields for actual material usage that is reported or viewed in Work Orders default just as they do when the usage is recorded or viewed in Inventory Control or Issues and Transfers. See the Inventory Control Transactions section (page 164) for GL field source information.
PURCHASING Purchase Requisitions

PR Lines Tab
On-Screen Fields, Material Requisitions for Storeroom From External Vendor Debit GL Account (GLDEBITACCT) GL Control Account field (hidden) for storeroom location in the Inventory Control application. Credit GL Account (GLCREDITACCT) RBNI field for Vendor in Companies RBNI field for Company Type field (for Vendor on PR line) on Company-Related Accounts dialog box in Chart of Accounts. Database PRLINE.GLDEBITACCT INVENTORY.CONTROLACC PRLINE.GLCREDITACCT COMPANIES.RBNIACC COMPANYACCDEF.RBNIACC (where TYPE = vendor companys type)
184
GL Account Tracking
On-Screen Fields, Material Requisitions for Direct Issue (Issue on Receipt? = Y) NOTE: Direct issue requisitions and purchase orders can only be created for an external vendor. Debit GL Account (GLDEBITACCT) 1) GL Account field (hidden) in the Inventory Control application Inventory Resource field for item Type field on Inventory Resource Codes dialog box in Chart of Accounts; 2) Work Order GL Account field; 3) Equipment GL Account field (hidden); 4) Location GL Account field. Credit GL Account (GLCREDITACCT) RBNI field for Vendor in Companies RBNI field for Company Type field (for Vendor on PR line) on Company-Related Accounts dialog box in Chart of Accounts. Database PRLINE.GLDEBITACCT 1) INVENTORY.GLACCOUNT ACCOUNTDEFAULTS.GLDEFAULT (where DFLTGROUP = INVRESCODE and GROUPVALUE = item type for item on PO line) 2) WORKORDER.GLACCOUNT 3) EQUIPMENT.GLACCOUNT 4) LOCATIONS.GLACCOUNT PRLINE.GLCREDITACCT COMPANIES.RBNIACC COMPANYACCDEF.RBNIACC (where TYPE = vendor companys type)
185
Chapter 5
On-Screen Fields, Material Requisitions From Internal Vendor (Another Storeroom) Debit GL Account (GLDEBITACCT) GL Control Account field (hidden) in the Inventory Control application for requisitioning storeroom location Inventory Control Account field on the Inventory-Related Accounts dialog box in Chart of Accounts. Credit GL Account (GLCREDITACCT) GL Control Account field (hidden) in the Inventory Control application for vendor storeroom location Inventory Control Account field on the Inventory-Related Accounts dialog box in Chart of Accounts. Database PRLINE.GLDEBITACCT INVENTORY.CONTROLACC (of requisitioning location) LOCATIONS.CONTROL.ACC PRLINE.GLCREDITACCT INVENTORY.CONTROLACC (of vendor location) LOCATIONS.CONTROL.ACC NOTE: You cannot create a service requisition that names an internal vendor. On-Screen Fields, Service Requisitions (Issue on Receipt? = Y) The Debit GL Account and Credit GL Account fields for a service requisition default just as they do for a direct issue material requisition, discussed above, except that, with services there is no item resource code involved in the merge. The one exception is when the service is ordered for a rotating piece of equipment, and the Charge to Store? field is set to Y. See below.
186
GL Account Tracking
On-Screen Fields, Service Requisitions (Issue on Receipt? = Y) for Rotating Equipment, When Charge to Store? = Y Debit GL Account (GLDEBITACCT) Rotating Suspense Account field (hidden) in Equipment Global Rotating Suspense Account field on the Inventory-Related Accounts dialog box in Chart of Accounts. Credit GL Account (GLCREDITACCT) RBNI field for vendor in Companies RBNI field for Company Type field (for vendor on PR line) on CompanyRelated Accounts dialog box in Chart of Accounts. Database PRLINE.GLDEBITACCT EQUIPMENT.ROTSUSPACCT ACCOUNTDEFAULTS.GLDEFAULT (where DFLTGROUP = INVRELACC and GROUPVALUE = ROTSUSPACCT) PRLINE.GLCREDITACCT COMPANIES.RBNIACC (of vendor) COMPANYACCDEF.RBNIACC where TYPE = vendor companys type
Purchase Orders
PO Lines Tab
PO line items can be copied from PR line items, or directly entered on the purchase order. In the first case, the GL fields are copied from the PR. In the second case, PO line GL fields default exactly as they do on a PR. The case of ordering storeroom items from an external vendor is shown below, with the PR line shown in parentheses, indicating that the PO GL information may have been copied from there. For other cases of purchase orders (from internal vendor, for issue on receipt materials, or for services), see the PR Lines Tab section (page 184).
187
Chapter 5
On-Screen Fields, Material Orders From External Vendor Debit GL Account (GLDEBITACCT) (Debit GL Account field on PR line) GL Control Account field (hidden) for storeroom location in the Inventory Control application. Credit GL Account (GLCREDITACCT) (Credit GL Account field on PR line) RBNI field for vendor in Companies RBNI field for Company Type field (for vendor on PO line) on Company-Related Accounts dialog box in Chart of Accounts. Database POLINE.GLDEBITACCT (PRLINE.GLDEBITACCT) INVENTORY.CONTROLACC POLINE.GLCREDITACCT (PRLINE.GLCREDITACCT) COMPANIES.RBNIACC COMPANYACCDEF.RBNIACC where TYPE = vendor companys type
Material Receipts Tab

The Debit GL Account and Credit GL Account fields on the Material Receipts tab have the same sources as they do for the associated PR or PO line, as discussed in the Purchase Requisitions section (page 184).
Service Receipts Tab

The Debit GL Account and Credit GL Account fields on the Service Receipts tab have the same sources as they do for the associated PR or PO line, as discussed in the Purchase Requisitions section (page 184).
188
GL Account Tracking
INVOICES Invoice Lines Tab

You can either copy invoice line items from PO line items or directly enter invoice line items. If you copy an invoice line from a PO, then the Debit GL Account field for that invoice line will default from the PO line debit account. When you directly enter invoice line items, the invoice line Debit GL Account field defaults exactly as if you were inserting a PR line. Thus, for more specific information about how the debit account defaults, see the PR Lines Tab section (page 184). The Credit GL field source is always the AP suspense account for the vendor that the user has specified in the Invoices application. Note that in the Database section, both the PO line and the PR line are shown in parentheses, indicating that the invoice GL information may have been copied from the PO. Following the Database section is an example in which the invoice consists of materials ordered for a storeroom. For information about account defaults for invoices containing either materials to be issued on receipt or services, see the PR Lines Tab section (page 184). On-Screen Fields Debit GL Account (GLDEBITACCT) (Debit GL Account field on PO Lines tab) (Debit GL Account field on PR Lines tab). Credit GL Account (GLCREDITACCT) AP Suspense field in Companies for vendor AP Suspense field for Company Type field (for vendor in Invoices application) on Company-Related Accounts dialog box in Chart of Accounts.
189
Chapter 5
Database INVOICECOST.GLDEBITACCT (POLINE.GLDEBITACCT) (PRLINE.GLDEBITACCT) INVOICECOST.GLCREDITACCT COMPANIES.APSUSPENSEACC COMPANYACCDEF.APSUSPENSEACC (where TYPE = vendor companys type)
! Example
Materials are purchased for a storeroom. On-Screen Fields Debit GL Account (GLDEBITACCT) (Debit GL Account field on PO Lines tab) (Debit GL Account field on PR Lines tab) GL Control Account field (hidden) for storeroom location in the Inventory Control application. Credit GL Account (GLCREDITACCT) AP Suspense field in Companies for vendor AP Suspense field for Company Type field (for vendor in Invoices application) on Company-Related Accounts dialog box in Chart of Accounts. Database INVOICECOST.GLDEBITACCT (POLINE.GLDEBITACCT) (PRLINE.GLDEBITACCT) INVENTORY.CONTROLACC INVOICECOST.GLCREDITACCT COMPANIES.APSUSPENSEACC COMPANYACCDEF.APSUSPENSEACC (where TYPE = vendor companys type)
Distribute Costs Dialog Box

Default information in this dialog box comes from the INVOICECOST table; data there resulted from the insertion of invoice line items. Thus, the GL Debit Account and GL Credit Account field sources are the same as those used when
190
GL Account Tracking
inserting an invoice line, discussed above in the Invoice Lines Tab section. As with inserting invoice lines, using the Distribute Costs dialog box creates no GL transactions until the approve invoice stage is reached. See the following section, Approve Invoice, on page 192, for a description of transactions at that stage. On-Screen Fields Debit GL Account (GLDEBITACCT) Debit GL Account field on invoices line. Credit GL Account (GLCREDITACCT) Credit GL Account field on invoices line AP Suspense field in Companies for vendor AP Suspense field for Company Type field (for vendor in Invoices) on Company-Related Accounts dialog box in Chart of Accounts. Database INVOICECOST.GLDEBITACCT ( POLINE.GLDEBITACCT)( PRLINE.GLDEBITACCT) INVOICECOST.GLCREDITACCT COMPANIES.APSUSPENSEACC COMPANYACCDEF.APSUSPENSEACC (where TYPE = vendor companys type)
! Example
Materials are purchased for a storeroom. On-Screen Fields Debit GL Account (GLDEBITACCT) (Debit GL Account field on PO line) (Debit GL Account field on PR line) GL Control Account field (hidden) for storeroom location in the Inventory Control application. Credit GL Account (GLCREDITACCT) AP Suspense field in Companies for vendor AP Suspense field for Company Type field (for vendor in
191
Chapter 5
Invoices) on Company-Related Accounts dialog box in Chart of Accounts. Database INVOICECOST.GLDEBITACCT ( POLINE.GLDEBITACCT) (PRLINE.GLDEBITACCT) INVENTORY.CONTROLACC INVOICECOST.GLCREDITACCT COMPANIES.APSUSPENSEACC COMPANYACCDEF.APSUSPENSEACC (where TYPE = vendor companys type)
Approve Invoice
NOTE: All on-screen GL fields in the Invoices application have already acquired their values from the insertion of the invoice lines. Approving an invoice does not affect the values in any on-application GL fields; however, approving an invoice does create at least one database transaction, and has the potential to create others. The Database sections that follow detail the sources of the GL account codes for these transactions. Invoice Total Transaction Database INVOICETRANS.GLDEBITACCT COMPANIES.RBNIACC COMPANYACCDEF.RBNIACC (where TYPE = vendor companys type) INVOICETRANS.GLCREDITACCT COMPANIES.APSUSPENSEACC COMPANYACCDEF.APSUSPENSEACC (where TYPE = vendor companys type) Service for Item With No PO Database If Charge to Store? = N SERVRECTRANS.GLDEBITACCT INVOICECOST.GLDEBITACCT 1) WORKORDER.GLACCOUNT
192
GL Account Tracking
2) EQUIPMENT.GLACCOUNT 3) LOCATIONS.GLACCOUNT SERVRECTRANS.GLCREDITACCT COMPANIES.RBNIACC COMPANYACCDEF.RBNIACC (where TYPE = vendor companys type) If Charge to Store? = Y SERVRECTRANS.GLDEBITACCT INVOICECOST.GLDEBITACCOUNT EQUIPMENT.ROTSUSPACCT ACCOUNTDEFAULTS.GLDEFAULT (where DFLTGROUP = INVRELACC and GROUPVALUE = ROTSUSPACCT) SERVRECTRANS.GLCREDITACCT COMPANIES.RBNIACC COMPANYACCDEF.RBNIACC (where TYPE = vendor companys type) Tax Transactions Database If Tax Paid to Vendor (Pay Tax to Vendor? = Y) and if Tax is of Type Tax n, Where 1 n 5 INVOICETRANS.GLDEBITACCT INVOICE.TAXnGL TAXTYPE.INCLUSIVEGL INVOICETRANS.GLCREDITACCT COMPANIES.RBNIACC COMPANYACCDEF.RBNIACC (where TYPE = vendor companys type) If Tax Paid Directly to Authority (Pay Tax to Vendor? = N) and if Tax is of Type Tax n, Where 1 n 5 INVOICETRANS.GLDEBITACCT INVOICE.TAXnGL TAXTYPE.EXCLUSIVEGL INVOICETRANS.GLCREDITACCT TAXTYPE.INCLUSIVEGL
193
Chapter 5
Cost Variance Transactions Database With any cost variance, there is always a transaction written to either MATRECTRANS or SERVRECTRANS, depending on whether the item is material or service. As with records written to PRLINE and POLINE, the source of the accounts varies, depending on the nature of the item and on the planned use for the item. In addition, as covered in Chapter 4, Financial Processes, currency variance and invoice price variance transactions may be written to INVOICETRANS. See Chapter 4 for further explanation about the conditions that produce these variance transactions. For Materials NOTE: This database transaction always occurs for materials when there is a cost variance. MATRECTRANS.GLDEBITACCT INVOICECOST.GLDEBITACCT MATRECTRANS.GLCREDITACCT POLINE.GLCREDITACCT
! Example
Materials are purchased for a storeroom (Issue on Receipt? = N), and the invoice quantity is less than the current balance. MATRECTRANS.GLDEBITACCT INVOICECOST.GLDEBITACCT POLINE.GLDEBITACCT (PRLINE.GLDEBITACCT) INVENTORY.CONTROLACC MATRECTRANS.GLCREDITACCT POLINE.GLCREDITACCT COMPANIES.RBNIACC COMPANYACCDEF.RBNIACC (where TYPE = vendor companys type)
Additional Possible Transactions for Materials If Issue on Receipt? = Y
194
GL Account Tracking
MATUSETRANS.GLDEBITACCT INVOICECOST.GLDEBITACCT MATUSETRANS.GLCREDITACCT POLINE.GLCREDITACCT If Issue on Receipt? = N and UpdateInventory = 0; If Issue on Receipt? = N and UpdateInventory = 1 and Invoice Quantity > Current Balance In either of these two cases, one or both of the following transactions can occur: Currency variance transaction: INVOICETRANS.GLDEBITACCT LOCATIONS.CURVARACCT INVOICETRANS.GLCREDITACCT INVOICECOST.GLDEBITACCT POLINE.GLDEBITACCT (PRLINE.GLDEBITACCT) INVENTORY.CONTROLACC Invoice price variance transaction: INVOICETRANS.GLDEBITACCT LOCATIONS.INVOICEVARACCT INVOICETRANS.GLCREDITACCT INVOICECOST.GLDEBITACCT POLINE.GLDEBITACCT (PRLINE.GLDEBITACCT) INVENTORY.CONTROLACC For Service SERVRECTRANS.GLDEBITACCT INVOICECOST.GLDEBITACCT SERVRECTRANS.GLCREDITACCT POLINE.GLCREDITACCT
195
Chapter 5
Transactions Resulting From Distributing Costs Database NOTE: The actual GL transactions occur only at the time of invoice approval. For Materials MATRECTRANS.GLDEBITACCT INVOICECOST.GLDEBITACCT MATRECTRANS.GLCREDITACCT POLINE.GLCREDITACCT Additional Possible Transaction for Materials If Issue on Receipt? = Y MATUSETRANS.GLDEBITACCT INVOICECOST.GLDEBITACCT MATUSETRANS.GLCREDITACCT POLINE.GLCREDITACCT For Service SERVRECTRANS.GLDEBITACCT INVOICECOST.GLDEBITACCT SERVRECTRANS.GLCREDITACCT POLINE.GLCREDITACCT
ACCOUNTS PAYABLE TRANSACTIONS

The Accounts Payable Transactions table (INVOICE) does not have a corresponding MAXIMO application. General ledger transactions are written to this table for use by an accounts payable system.
Database
INVOICE.GLDEBITACCT COMPANIES.APSUSPENSEACC COMPANYACCDEF.APSUSPENSEACC
196
GL Account Tracking
INVOICE.GLCREDITACCT COMPANIES.APCONTROLACC COMPANYACCDEF.APCONTROLACC
197
Chapter 5
198
APPENDIX GL DATABASE COLUMN DEFINITIONS
The table in this appendix lists the GL Account columns found in MAXIMO user applications. It shows the MAXIMO Application, table, and column name for each column. It also indicates whether the GL Account must be fully specified and whether there is an Update Database restriction. The Fully or Partially Specified column in the table indicates whether the GL database column (and its corresponding field on a tab) requires a fully specified account, or whether a partially specified account is acceptable. A fully specified account has an account code in each required component, e.g., 6100-350-SAF. A partially specified account has placeholders characters for one or more of the account components, e.g., 6100-???-SAF. The Update DB Restriction column indicates whether the GL account is restricted by the Update Database menu item in Chart of Accounts. This affects a users ability to edit the corresponding GL Account field. Typically, a users ability to edit a GL account code depends on whether he or she has been granted GL Component Access privileges for the individual components. However, for GL database columns designated Restricted, a user must have both GL Component Access privileges and access privileges to the Update Database menu item in Chart of Accounts.
199
Appendix
Therefore, you can limit a users ability to edit Restricted columns (and their corresponding fields) by simply changing the users Access privileges from Y to N for the Update Database menu option in Chart of Accounts. You use Signature Security to grant both GL Component Access and Update Database menu privileges.
GL Database Column Definitions

App
CHRTACCT CHRTACCT CHRTACCT CHRTACCT TAX TAX TAXTYPE TAXTYPE
Table
Column
EXCLUSIVEGL INCLUSIVEGL EXCLUSIVEGL INCLUSIVEGL
Fully or Partially Update DB Specified Restriction

Fully specified Fully specified Fully specified Fully specified Restricted Restricted Restricted Restricted
COMPANY COMPANY COMPANY
COMPANIES COMPANIES COMPANIES
APCONTROLACC APSUSPENSEACC RBNIACC
Fully specified Fully specified Fully specified
Restricted Restricted Restricted
EQUIPMNT EQUIPMNT EQUIPMNT EQUIPMNT
EQTRANS EQTRANS EQUIPMENT EQUIPMENT
GLDEBITACCT GLCREDITACCT GLACCOUNT ROTSUSPACCT
Partially specified Partially specified Partially specified Fully specified Restricted Restricted
INVENTOR INVENTOR
INVENTORY INVENTORY
CONTROLACC GLACCOUNT
Fully specified Partially specified
Restricted Restricted
200
App
INVENTOR INVENTOR INVENTOR INVENTOR INVENTOR INVENTOR INVENTOR
Table
INVENTORY INVENTORY INVRESERVE INVTRANS INVTRANS REORDER REORDER
Column
INVCOSTADJACC SHRINKAGEACC GLACCOUNT GLCREDITACCT GLDEBITACCT CONTROLACC GLACCOUNT

Fully specified Fully specified Fully specified Fully specified Fully specified Fully specified Fully specified Restricted Restricted Restricted Restricted
INVOICE INVOICE INVOICE INVOICE INVOICE INVOICE INVOICE INVOICE INVOICE INVOICE INVOICE INVOICE INVOICE INVOICE
APTRANS APTRANS INVOICE INVOICE INVOICE INVOICE INVOICE INVOICE INVOICE INVOICECOST INVOICECOST INVOICETRANS INVOICETRANS SCHARGES
GLCREDITACCT GLDEBITACCT APCONTROLACCT APSUSPENSEACCT TAX1GL TAX2GL TAX3GL TAX4GL TAX5GL GLCREDITACCT GLDEBITACCT GLCREDITACCT GLDEBITACCT GLDEBITACCT
Fully specified Fully specified Fully specified Fully specified Fully specified Fully specified Fully specified Fully specified Fully specified Fully specified Fully specified Fully specified Fully specified Fully specified
Restricted
Restricted Restricted Restricted Restricted Restricted Restricted Restricted Restricted
Restricted
201
Appendix
App
LABOR LABOR LABOR LABOR LABOR LABOR
Table
Column
CONTROLACC GLACCOUNT GLCREDITACCT GLDEBITACCT

Fully specified Partially specified Fully specified Fully specified Restricted Restricted Restricted
LABTRANS LABTRANS
LOCATION LOCATION LOCATION LOCATION LOCATION LOCATION LOCATION LOCATION
LOCATIONS LOCATIONS LOCATIONS LOCATIONS LOCATIONS LOCATIONS LOCATIONS LOCATIONS
CONTROLACC CURVARACC GLACCOUNT INVCOSTADJACC INVOICEVARACC PURCHVARACC RECEIPTVARACC SHRINKAGEACC
Fully specified Fully specified Partially specified Fully specified Fully specified Fully specified Fully specified Fully specified
Restricted Restricted Restricted Restricted Restricted Restricted Restricted Restricted
PM
PM
GLACCOUNT
Partially specified
PO PO PO PO PO
MATRECTRANS MATRECTRANS MATUSETRANS MATUSETRANS POLINE
GLCREDITACCT GLDEBITACCT GLCREDITACCT GLDEBITACCT GLCREDITACCT
Fully specified Fully specified Fully specified Fully specified Fully specified
Restricted
Restricted
Restricted
202
App
PO POLINE
Table
Column
GLDEBITACCT

Partially specified up to APPROVAL Fully specified on APPROVAL
PR PR
PRLINE PRLINE
GLCREDITACCT GLDEBITACCT
Fully specified Partially specified up to APPROVAL Fully specified on APPROVAL
Restricted
RFQ RFQ RFQ
RFQLINE RFQVENDOR QUOTATIONLINE
GLDEBITACCT GLCREDITACCT GLCREDITACCT
Fully specified Fully specified Fully specified Restricted Restricted
SERV SERV
SERVRECTRANS SERVRECTRANS
GLCREDITACCT GLDEBITACCT
Fully specified Fully specified
Restricted
TOOL TOOL TOOL TOOL
TOOL TOOL TOOLTRANS TOOLTRANS
CONTROLACC GLACCOUNT GLCREDITACCT GLDEBITACCT
Fully specified Partially specified Fully specified Fully specified
Restricted
Restricted
WOTRACK WOTRACK
WORKORDER WOSTATUS
GLACCOUNT GLACCOUNT
Partially specified Partially specified
203
Appendix
204
NOTES
Notes
Notes
MPD0581-41MAXFMG-01-ENG-07/17/00

41MAXFMG

Загружено:

Сведения о документе

Исходное описание:

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

41MAXFMG

Загружено:

Авторское право:

Доступные форматы

Finance Managers Guide

RELATED MAXIMO DOCUMENTATION

Authorizing GL Component Access

DATABASE CONFIGURATION GL Account Configuration

Mandatory and Optional Components

GL Account Code Validation

Financial Period Validation

THE CHART OF ACCOUNTS

Other Equipment Type Locations

Other Inventory Type Locations

CHAPTER 2 MAXIMO TRANSACTION TYPES

Database Table INVTRANS Inventory Transactions table; List name ITTYPE

MAXIMO Transaction Types

Transaction Type (Value) INSERTITEM Insertion of item record

STDRECADJ Standard receipt adjustment

Transaction Type (Value) ISSUE Issue; Not used in MATRECTRANS.

RETURN Return; Not used in MATRECTRANS.

RECEIPT Material receipt TRANSFER Material transfer

MAXIMO Transaction Types

Transaction Type (Value) INVOICE Invoice variance

SERVRECTRANS Service Receipts Table; (no List name)

Not named; SERVRECTRANS has only one associated transaction type

Database Table MATUSETRANS Material Usage table; List name ISSUETYPE

Transaction Type (Value) ISSUE Issue or usage

RETURN Return item to store

RECEIPT Receipt; Not used in MATUSETRANS

MAXIMO Transaction Types

Transaction Type (Value) TRANSFER Transfer; Not used in MATUSETRANS

INVOICE Invoice variance

INVOICETRANS Invoice Transactions table; List name INVCETYPE

TAX2 Tax transaction for tax of type 2

Transaction Type (Value) TAX3 Tax transaction for tax of type 3

TAX4 Tax transaction for tax of type 4

TAX5 Tax transaction for tax of type 5

INVCEVAR Invoice price variance transaction

MAXIMO Transaction Types

Transaction Type (Value) CURVAR Currency variance transaction

LABTRANS Labor Transactions Table; List name LTTYPE

Transaction Type (Value) TRAV

TOOLTRANS Tools Transaction table; (no List name)

Not named; TOOLTRANS has only one associated transaction type

Report actual tool usage in Work Orders

APTRANS Accounts Payable Transaction table; (no List name)

Not named; APTRANS has only one associated transaction type

CHAPTER 3 MAXIMO GENERAL LEDGER ACCOUNTS

MAXIMO General Ledger Accounts

Receipts Price Variance Account

Invoice Price Variance Account

MAXIMO General Ledger Accounts

Purchase Variance Account Rotating Suspense Account

MAXIMO General Ledger Accounts

MAXIMO General Ledger Accounts

Resource Control Accounts

MAXIMO General Ledger Accounts

MAXIMO General Ledger Accounts

Tool Resource Code

Inventory Resource Code

MAXIMO General Ledger Accounts

Location and Equipment Accounts

MAXIMO General Ledger Accounts

Preventive Maintenance Account

CHAPTER 4 FINANCIAL PROCESSES

Insert company record Insert company location record