To create the necessary automatic posting items for sales analysis, the system uses a two-dimensional matrix. This matrix is based on your product types and sales sources. When you define product types and sales sources, the system creates the necessary automatic posting items. From these automatic posting items, you would create your general ledger accounts.
For example, if you have three product types (electrical, plumbing, and heating) plus the default product type and two sales sources (inside sales and outside sales), and the default sales source, then the system creates 24 automatic posting items for all of the possible product type and sales source combinations. Based on the four additional product type account categories, the system creates an additional 16 automatic posting items. Subsequently, you would have 40 automatic posting items on which to base your creation of your general ledger accounts.
The system creates the number of automatic posting items based on the following equations, calculated in succession.
The numerical version of the sales equation follows, based on our example of three product types and two sales sources:
(Product type) times (Sales type) times (sales and COGS) = X
(3 + 1) x (2 + 1) x 2 = 24
(X) plus {(Product type) times additional product types}= 40
24 + {(3 + 1) x 4} = 40
The first part of the sales equation is as follows:
|
Product types times |
Sales sources |
Equals total number of combinations of product types and sales sources |
|
Electrical Plumbing Heating System default |
Inside sales Outside sales System default |
For example: Electrical - Inside sales Electrical - Outside sales Electrical - Default sales |
|
4 |
3 |
12 |
The second part of the sales equation is as follows:
|
Total number of product and sales sources combinations times |
Sales plus COGS |
Equals total number of sales analysis categories: |
|
12 |
2 |
24 |
The third part of the sales equation is as follows:
|
Total number of product types times |
Additional sales analysis categories: Transfer sales Transfer COGS Purchases Transfer purchases |
Equals total number of additional automatic posting requirements created by the system |
|
4 |
4 |
16 |
The fourth part of the sales equation is as follows:
|
Total number of automatic posting requirements plus |
Total number of additional automatic posting requirements created by the system |
Equals total number of automatic posting items created by the system |
|
24 |
16 |
40 |
From the initial example of three product types and two sales sources, 40 automatic posting items are created. You then create your general ledger account based on these automatic posting items, then assign each automatic posting item to a general ledger account. Keep in mind, however, that you do not have to use every automatic posting item that is created.
See Also: