Control Accounts: Process Activity

In this activity, you will explore how the use of control accounts is restricted in MYOB Acumatica.

Video Tutorial

This video shows you the common process but may contain less detail than the activity has. If you want to repeat the activity on your own or you are preparing to take the certification exam, we recommend that you follow the instructions in the steps of the activity.

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Story

The SweetLife Fruits & Jams company has migrated to a new version of MYOB Acumatica. (Starting in 2020 R2, it became possible to configure some of the GL accounts as control accounts and to restrict direct posting to the control accounts.)

The implementation consultant responsible for the update has configured some of the accounts as control accounts in the system and has asked you, the SweetLife accountant, to review the control accounts in the system and become familiar with the system’s restrictions on the use of control accounts.

Process Overview

First, on the Chart of Accounts (GL202500) form, you will review the two GL accounts configured as control accounts for accounts receivable and accounts payable. On this form, you will also allow direct posting to the GL account configured as a control account for the AR subledger.

On the Invoices and Memos (AR301000) form, you will create an invoice for a customer, and in an invoice line, you will select the control account for the AR subledger in the Account column. You will explore how the system behaves when direct posting to the control account is prohibited.

On the Bills and Adjustments (AP301000) form, you will create a bill for a vendor, and in a bill line, you will select the control account for the AP subledger in the Account box. You will explore how the system behaves when direct posting to the control account is allowed.

On the GL Accounts tab of the Customers (AR303000) form, in the AR Account box, in which the system expects that a control account for accounts receivable will be selected, you will select first a non-control account and then a control account for a subledger other than AR; you will then explore what happens.

For a list of the specific UI elements in which the system expects a control account for a particular subledger, see Control Accounts: UI Elements for Which Control Accounts Are Expected.

System Preparation

Before you perform the steps of this lesson, do the following:

Launch the MYOB Acumatica website, and sign in to a company with the U100 dataset preloaded. To sign in as an accountant, use the following credentials:
- Username: johnson
- Password: 123
In the info area, in the upper-right corner of the top pane of the MYOB Acumatica screen, make sure that the business date in your system is set to 1/31/2024. If a different date is displayed, click the Business Date menu button and select 1/31/2024. For simplicity, in this process activity, you will create all documents in the system on this business date.
On the Company and Branch Selection menu, also on the top pane of the MYOB Acumatica screen, make sure that the SweetLife Head Office and Wholesale Center branch is selected. If it is not selected, click the Company and Branch Selection menu button to view the list of branches that you have access to, and then click SweetLife Head Office and Wholesale Center.

Step 1: Reviewing the GL Accounts Configured in the System

To review the GL accounts configured in the system as control accounts for the accounts receivable and accounts payable subledgers, do the following:

Open the Chart of Accounts (GL202500) form.
Notice that for the 11000 - Accounts Receivable account, AR is selected in the Control Account Module column, and for the 20000 - Accounts Payable, AP is selected in the Control Account Module column. This means that the 11000 account is a control account for accounts receivable and the 20000 account is a control account for accounts payable.
Further notice that the Allow Manual Entry check box is cleared for both accounts. This indicates that direct posting to these accounts is prohibited.
Select the Allow Manual Entry check box for the 20000 account and click Save to save your changes.
When the Allow Manual Entry check box is selected for a control account, users can select this account in documents on data entry forms.
In the next steps of this lesson, you will begin creating documents to explore how the system restricts posting to these accounts based on this setting.

Step 2: Creating an Invoice

To create an invoice for GoodFood One Restaurant to test the control accounts, do the following:

On the Invoices and Memos (AR301000) form, click Add New Record, and specify the following settings in the Summary area:
- Type: Invoice
- Customer: GOODFOOD
- Date: 1/31/2024 (selected by default)
On the Details tab, add a new row, and in the added row, specify the following settings:
- Branch: HEADOFFICE (selected by default)
- Inventory ID: ONLCOURSE
- Quantity: 5
- UOM: DAY (selected by default)
- Unit Price: 14.50 (selected by default)
In the Account column, notice that the system has automatically inserted the 40000 - Sales Revenue account.
Enter 11000 in the Account column and press Ctrl + Enter to submit the changes.
Notice that the system displays an error indicating that this account is configured as a control account for accounts receivable and that posting to it is prohibited. This happens because 11000 is selected as a control account for accounts receivable but the settings do not allow posting to it—that is, you left the Allow Manual Entry check box cleared for it on the Chart of Accounts (GL202500) form.

You do not have to save the invoice or process it any further. You started creating it solely to see how the system restricts posting to the account configured as a control account.

Step 3: Creating a Bill

To start to create a bill for Blueline Advertisement, do the following:

On the Bills and Adjustments (AP301000) form, click Add New Record, and specify the following settings in the Summary area:
- Type: Bill
- Vendor: BLUELINE
- Date: 1/31/2024 (selected by default)
On the Details tab, add a new row, and in the added row, specify the following settings:
- Branch: HEADOFFICE (selected by default)
- Inventory ID: ADVERT
- Quantity: 2
- UOM: DAY (selected by default)
- Unit Cost: 300
In the Account column, notice that the system has automatically inserted the 61000 - Advertising Expense account.
Enter 20000 in the Account column and press Ctrl + Enter to submit the changes.
Notice that unlike in Step 2, the system does not display any errors. This happens because the Allow Manual Posting check box has been selected for the 20000 account on the Chart of Accounts (GL202500) form.

You do not have to save the bill or process it any further. You started creating it solely to see how the system restricts posting to the account configured as a control account.

Step 4: Reviewing the GL Accounts Specified for a Customer

To review the GL accounts specified for the GoodFood One Restaurant customer, do the following:

On the Customers (AR303000) form, select the GOODFOOD customer.
On the GL Accounts tab of the form, review the GL accounts selected for the customer.
Notice that in the AR Account box, the 11000 account is selected. This account has been configured as a control account for accounts receivable; that is, on the Chart of Accounts (GL202500) form, AR has been selected for this account in the Control Account Module box.
In the AR Account box, select 11010, which is not configured as a control account for any subledger.
The system displays a warning that this account has not been configured as a control account for accounts receivable. Despite the warning, it is still possible to select the non-control account in this box.
In the AR Account box, select 20000.
Notice that the system displays an error. The 20000 account is configured as a control account for AP and cannot be selected in the AR Account box because the system expects that a control account for accounts receivable should be selected in this box.
In the AR Account box, select 11000 again, and save your changes.