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Income Account Maps

Distributor steps for setting up Income Account Maps in Encompass so invoice sales post to the right income, COGS, discount, participation and deposit GL accounts. Requires v22.01+.

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Written by Bailey Naas-Thornton

Minimum Version Required: 22.01

Pre-Conditions

  • The following workflow assumes you already have added Accounts to be used in the Accounts table.

Steps

Income Account Maps allow you to specify how different types of sales transactions should be recorded in the general ledger. This includes mapping sales to the appropriate income accounts, cost of goods sold accounts, and other relevant accounts. By setting up these mappings, you can ensure that your financial reporting accurately reflects your sales activity.
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​How to Create an Income Account Map
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  1. Using Universal Search, navigate to the Income Account Maps table.
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  2. Click the +Add Income Account Map button.
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  3. Select the Company and Income Area, Income Account, COGS Account, Discount Account, Participation Account, Participation AR Account, Deposit Income Account, and Deposit Cogs Accounts
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  4. To set up separate mapping for a certain Supplier, Product Type, or Product use the fields for these categories to specify what this map will be used for.
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  5. Then click Add Record.

Fields And Definitions

  • *Company - the financial entity associated with the mapping
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  • *Income Area - is the collection of customers whose Income Account Maps are mapped the same way.
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  • Income Account - This is where the full price for the product is recorded, i.e. total revenue.
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  • COGS Account - This is where the total laid-in cost for the product is recorded, it is the offset for the inventory transaction
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    NOTE: When tax on sale methods are used, tax due to the State is included
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  • Discount Account - This is where the discount is recorded. if you only want to see gross revenue in your general ledger, set this field with the same account used for Income Account
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  • Participation Account - This records the participation/bill back/rebates from promotions given to distributors from suppliers. It records as a negative COGS transaction (to increase the margin). If not used can be set the same as the COGS account.
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  • Participation AR Account - This records the amount of participation that is due to the distributor and is the offset to the Participation Account.
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  • Deposit Income Account - This records the amount charged to customers for deposits like kegs or trays.
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  • Deposit Cogs Account - This records the value of the deposit and reduces the inventory account. It can be a liability account if you wish to record that you, not the supplier, are still responsible for the kegs.

Transaction Source: Invoices
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​Determining Factors:
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  • Company
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  • Income Area (customers)
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  • Product Type
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  • Supplier
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  • Product

Best Practices

Create one default income account map per company & income area as a "catch all" map in case of missing maps by product, supplier or product type. AR Close contains logic to check that default maps exist and will create them if they do not. The user will be prompted to assign the GL Accounts in these maps before AR Close can be restarted.

When creating an Income Account Map, you can only set one of the following qualifiers: Product, Supplier, Supplier & Product Type combination, or Product Type.

Tip: When troubleshooting why an invoice hit a certain Income Account Map, check the Distribution Area associated with the Customer on the Invoice.

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