Enabling Purchase Account Management in Business ByDesign

Co-Authors: Kamal Kant, V Nagarathna, Pavithra Veerabhadraiah

Dear Readers,

The requirement from many customers is to have the simultaneous posting into purchase G/L account along with the inventory G/L account, upon receipt of stock during purchase transactions. These postings shall give an option for the user to see the stock purchase even in the P&L statement.

In some countries where this is a legal requirement (France & Greece), ByD already enables the same.For all other countries, the default purchasing posting is only to the inventory balance sheet account.

In-order to achieve the requirement of customers for other countries, an add-on can be built.

In here, those steps are explained in detail…

• Create a new solution in the partner development tenant.
• Once the solution is created, create a new BC set.
• In the pop-up that comes up, choose the BC set name as “AccountDeterminationWithholdingTaxCountries”. Maintain the settings as shown in the screenshots below.

• Save the solution and activate the same.
• Now proceed to create a new BC set in the solution.
• In the pop-up that comes up, choose the BC set name as “AccountDeterminationUserInterfaceControl”. Maintain the settings as shown in the screenshots below. This will ensure that the relevant UI screen changes will be available for user to maintain purchase account management (PAM) G/L accounts.

• Save the solution and activate the same.
• Now, proceed to create a new BC set.
• In the pop-up that comes up, choose the BC set name as “AccountingPrinciple”. Maintain the settings as shown in the screenshots below. In here, we are creating a new ‘Accounting Principle’ which can then be used for enabling purchase account management in later steps.

• Save the solution and activate it.
• Now, proceed to create a new BC set.
• In the pop-up that comes up, choose the BC set name as “CountrySpecificActivationOfPurchasingAccountManagement”. Maintain the settings as shown in the screenshots below. This will ensure, that the PAM (Purchase Account management) is now active for the accounting principle chosen.

• Save the solution & activate it. With this, the add-on solution part is completed.

Configuration Steps –

• Open the Business ByDesign UI and navigate to the fine-tuning activities of the project (in Business configuration view)

• Finetuning (if Fixed Assets are scoped in): Depreciation Methods have to be updated accordingly, by adding the accounting principle for which the PAM is activated. (in this example, the methods are updated with accounting principle ZUS)

• Finetuning (if Fixed Assets are scoped in): Fixed asset valuation view have to be updated accordingly, by adding the accounting principle for which the PAM is activated. (in this example, ZUS is added in relevant valuation views)

• Finetuning: Set of Books have to be created for the company with linkage to the accounting principle for which PAM is activated

• Finetuning: Based on Account determination group maintained against Product and Supplier, we need to have Account Determination set up for inventories. Navigate to finetuning activity ‘Charts of Accounts, Financial Reporting Structures, Account Determination’. Once the add-on is deployed properly, there will be a new tab “Purchase Account” shall appear, where you can maintain relevant G/L accounts.

• After all the above steps, once the goods receipt happens against the purchase order, the posting shall happen to PAM G/L account maintained in previous step along with inventory G/L account.

if you have any further queries, feel free to capture them in the comments section below and we will revert at the earliest

Regards,

Krishna