Consultant Guide

Implementation Guide
2022 R2
 Contents | 2

Contents
Copyright............................................................................................................................................. 14
Acumatica ERP Implementation Guide................................................................................................... 15
Preparing an Instance for Implementation............................................................................................. 16
Preparing an Instance: General Information..................................................................................................16
Preparing an Instance: Implementation Checklist........................................................................................ 17
Preparing an Instance: Activation and Licensing...........................................................................................17
Preparing an Instance: To Enable Features and Activate the License...........................................................19
Preparing an Instance: System-Wide Security Policy.................................................................................... 23
Preparing an Instance: To Configure Secure Access for Implementers........................................................ 24
Preparing an Instance: Acumatica ERP Features........................................................................................... 28
Preparing a Company for Implementation..............................................................................................47
Company Without Branches........................................................................................................................... 47
Company Without Branches: General Information.............................................................................. 47
Company Without Branches: Implementation Checklist..................................................................... 49
Company Without Branches: To Configure a Company Without Branches.........................................51
Company with Branches that Do Not Require Balancing..............................................................................53
Company with Branches that Do Not Require Balancing: General Information................................. 53
Company with Branches that Do Not Require Balancing: Implementation Checklist........................ 54
Company with Branches that Do Not Require Balancing: Implementation Activity...........................58
Company with Branches that Require Balancing.......................................................................................... 60
Company with Branches that Require Balancing: General Information............................................. 60
Company with Branches that Require Balancing: Implementation Checklist.................................... 62
Company with Branches that Require Balancing: Implementation Activity....................................... 65
Implementing Basic Financials.............................................................................................................. 69
General Ledger................................................................................................................................................. 69
General Ledger: General Information....................................................................................................69
General Ledger: Configuration Prerequisites........................................................................................70
General Ledger: Actual Ledger...............................................................................................................70
General Ledger: To Create an Actual Ledger.........................................................................................71
General Ledger: Chart of Accounts........................................................................................................71
General Ledger: To Create a Chart of Accounts.................................................................................... 72
General Ledger: To Specify General Ledger Preferences......................................................................74
General Ledger: Financial Years.............................................................................................................75
General Ledger: To Define a Financial Year...........................................................................................76
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Credit Terms.....................................................................................................................................................77
Credit Terms: General Information........................................................................................................77
Credit Terms: Configuration Prerequisites............................................................................................78
Credit Terms: To Define Credit Terms................................................................................................... 78
Accounts Payable............................................................................................................................................. 79
Accounts Payable: General Information................................................................................................79
Accounts Payable: Configuration Prerequisites....................................................................................80
Accounts Payable: Vendor Classes........................................................................................................ 81
Accounts Payable: To Create a Vendor Class........................................................................................ 81
Accounts Payable: To Specify Accounts Payable Preferences.............................................................. 82
Accounts Receivable........................................................................................................................................ 83
Accounts Receivable: General Information........................................................................................... 83
Accounts Receivable: Configuration Prerequisites............................................................................... 84
Accounts Receivable: Statement Cycles................................................................................................ 85
Accounts Receivable: To Create a Statement Cycle..............................................................................85
Accounts Receivable: Customer Classes............................................................................................... 86
Accounts Receivable: To Create a Customer Class............................................................................... 86
Accounts Receivable: To Specify Accounts Receivable Preferences.................................................... 88
Cash Management........................................................................................................................................... 89
Cash Management: General Information.............................................................................................. 89
Cash Management: Configuration Prerequisites.................................................................................. 90
Cash Management: To Specify Cash Management Preferences.......................................................... 90
Cash Management: Entry Types............................................................................................................ 91
Cash Management: To Create an Entry Type........................................................................................ 92
Cash Management: Cash Accounts........................................................................................................93
Cash Management: To Create Cash Accounts.......................................................................................93
Cash Management: Payment Methods..................................................................................................95
Cash Management: To Modify a Payment Method............................................................................... 95
Cash Management: To Deactivate a Payment Method......................................................................... 96
Implementing Advanced Financials........................................................................................................ 98
Allocation Rules............................................................................................................................................... 98
Allocation Rules: General Information.................................................................................................. 98
Allocation Rules: Distribution Methods...............................................................................................100
Allocation Rules: Examples of Using Account and Subaccount Masks for Allocations..................... 101
Allocation Rules: Multilevel Allocations.............................................................................................. 101
Allocation Rules: Interbranch Allocations........................................................................................... 102
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Allocation Rules: Allocation Between the Same Accounts and Subaccounts................................... 102
Allocation Rules: Implementation Checklist.......................................................................................104
Allocation Rules: To Create an Allocation Rule That Uses a Fixed Ratio (Weight).............................104
Allocation Rules: To Create an Allocation Rule That Uses a Fixed Ratio (Percentage)...................... 106
Allocation Rules: To Create an Allocation Rule That Uses a Dynamic Ratio of the Period-to-Date
Account Balances..................................................................................................................................108
Allocation Rules: To Create an Allocation Rule Based on Budget Data............................................. 111
Automatically Combined Subaccounts........................................................................................................ 113
Combined Subaccounts: General Information................................................................................... 113
Combined Subaccounts: Configuration Prerequisites....................................................................... 115
Combined Subaccounts: Example of a Subaccount Structure...........................................................116
Combined Subaccounts: To Define a Subaccount Mask for AR Documents......................................116
Combined Subaccounts: To Define a Subaccount Mask for AP Documents......................................118
Interbranch Account Mapping.......................................................................................................................120
Interbranch Account Mapping: General Information..........................................................................120
Interbranch Account Mapping: Implementation Checklist................................................................ 121
Interbranch Account Mapping: Implementation Activity................................................................... 122
Intercompany Sales ...................................................................................................................................... 124
Intercompany Sales: General Information.......................................................................................... 124
Intercompany Sales: Mapping Rules................................................................................................... 126
Intercompany Sales: Configuration Prerequisites.............................................................................. 129
Intercompany Sales: Implementation Activity....................................................................................130
Subaccounts...................................................................................................................................................133
Subaccounts: General Information......................................................................................................133
Subaccounts: Configuration Prerequisites..........................................................................................134
Subaccounts: Example of Planning of Subaccount Identifiers.......................................................... 135
Subaccounts: Implementation Activity............................................................................................... 136
Subaccounts: Allowable Changes to the Configuration of Subaccounts...........................................139
To Add a Subaccount............................................................................................................................139
To Deactivate a Subaccount.................................................................................................................140
Multiple Base Currencies...............................................................................................................................140
Multiple Base Currencies: General Information..................................................................................140
Multiple Base Currencies: Configuration Prerequisites......................................................................142
Multiple Base Currencies: Implementation Activity........................................................................... 142
Company Groups........................................................................................................................................... 147
Company Groups: General Information.............................................................................................. 147
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Company Groups: Configuration Prerequisites.................................................................................. 149

Company Groups: Implementation Activity........................................................................................149
Visibility of Customer Records...................................................................................................................... 151
Customer Visibility: General Information............................................................................................151
Customer Visibility: Implementation Checklist...................................................................................153
Customer Visibility: To Restrict Visibility to a Company.....................................................................154
Customer Visibility: To Restrict Visibility to a New Company.............................................................157
Visibility of Vendor Records.......................................................................................................................... 160
Vendor Visibility: General Information................................................................................................ 160
Vendor Visibility: Implementation Checklist.......................................................................................163
Vendor Visibility: To Restrict Visibility to a Branch............................................................................. 164
Vendor Visibility: To Restrict Visibility to a New Company.................................................................167
Implementing Budgets........................................................................................................................ 171
Access to Budget Nodes................................................................................................................................ 171
Access to Budget Nodes: General Information................................................................................... 171
Access to Budget Nodes: Implementation Checklist.......................................................................... 172
Access to Budget Nodes: Process Activity...........................................................................................174
Budget Ledger................................................................................................................................................176
Budget Ledger: General Information...................................................................................................176
Budget Ledger: Configuration Prerequisites.......................................................................................177
Budget Ledger: Implementation Activity............................................................................................ 177
Budget Tree.................................................................................................................................................... 178
Budget Tree: General Information.......................................................................................................178
Budget Tree: Example.......................................................................................................................... 180
Budget Tree: Configuration Prerequisites...........................................................................................182
Budget Tree: Implementation Activity................................................................................................ 183
Implementing Currency Management...................................................................................................188
Multicurrency Functionality.......................................................................................................................... 188
Multicurrency Functionality: General Information............................................................................. 188
Multicurrency Functionality: Configuration Prerequisites................................................................. 189
Multicurrency Functionality: Base Currency and Foreign Currencies................................................190
Multicurrency Functionality: Foreign Currency Settings.................................................................... 190
Multicurrency Functionality: Currency Rounding Rules.....................................................................191
Multicurrency Functionality: Implementation Activity.......................................................................192
Currency Rate Types and Current Rates.......................................................................................................195
Configuration of Rate Types and Rates: General Information........................................................... 195
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Configuration of Rate Types and Rates: Configuration Prerequisites............................................... 197

Configuration of Rate Types and Rates: Effective Rates.....................................................................197
Configuration of Rate Types and Rates: Assignment of Default Rate Types..................................... 198
Configuration of Rate Types and Rates: Historical Rates................................................................... 199
Configuration of Rate Types and Rates: To Configure Rates..............................................................200
Configuration of Rate Types and Rates: Ability to Refresh Rates.......................................................205
Configuration of Rate Types and Rates: To Set Up Refreshing of Rates............................................ 206
To Create a Rate Type.......................................................................................................................... 207
To View the Effective Currency Rates.................................................................................................. 208
To View Historical Currency Rates....................................................................................................... 208
Currency Translation Definitions.................................................................................................................. 209
Translation Definitions: General Information..................................................................................... 209
Translation Definitions: Configuration Prerequisites......................................................................... 211
Translation Definitions: Implementation Activity...............................................................................212
Configuring Cash Accounts in Foreign Currencies....................................................................................... 217
Multicurrency Cash Accounts: General Information...........................................................................217
Multicurrency Cash Account: Implementation Checklist................................................................... 219
Multicurrency Cash Accounts: To Configure an Account....................................................................220
Multicurrency Cash Accounts: To Process a GL Transaction.............................................................. 222
Multicurrency Cash Accounts: Related Report and Inquiry Forms.................................................... 225
Implementing Taxes............................................................................................................................226
Sales Taxes..................................................................................................................................................... 226
Sales Taxes: General Information........................................................................................................ 226
Sales Taxes: Additional Settings for Sales Taxes.................................................................................227
Sales Taxes: Configuration Prerequisites............................................................................................ 228
Sales Taxes: To Create a Sales Tax for Use in AR.................................................................................229
Sales Taxes: To Configure a Sales Tax for Use in AP........................................................................... 231
Tax Agency......................................................................................................................................................232
Tax Agency: General Information........................................................................................................ 232
Tax Agency: Configuration Prerequisites............................................................................................ 234
Tax Agency: To Set Up a Tax Agency for Sales Taxes.......................................................................... 234
Tax Agency: To Set Up a Tax Agency for VAT....................................................................................... 236
Tax Periods..................................................................................................................................................... 237
Tax Periods: General Information........................................................................................................ 237
Tax Periods: Synchronization with Financial Periods.........................................................................239
Tax Periods: Configuration Prerequisites............................................................................................ 240
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Tax Periods: Implementation Activity................................................................................................. 240

Tax Report...................................................................................................................................................... 241
Tax Report Configuration: General Information................................................................................. 241
Tax Report Configuration: Report Lines by Tax Zones........................................................................243
Tax Report Configuration: Report Currency........................................................................................243
Tax Report Configuration: Multiple Versions of a Tax Report.............................................................243
Tax Report Configuration: Configuration Prerequisites..................................................................... 244
Tax Report Configuration: To Create a Tax Report for Sales Taxes.................................................... 245
Tax Report Configuration: To Create a Tax Report for VAT................................................................. 248
Tax Report Configuration: To Create a Tax Report for VAT Variations................................................252
Tax Zones and Tax Categories.......................................................................................................................255
Tax Zones and Categories: General Information................................................................................ 255
Tax Zones and Categories: Automatic Assignment of a Tax Zone in Documents.............................. 257
Tax Zones and Categories: Configuration Prerequisites.....................................................................258
Tax Zones and Categories: To Review Tax Categories and Create a Tax Zone for Sales Taxes.......... 258
Tax Zones and Categories: To Create a Tax Category and Tax Zone for VAT......................................260
Tax Zones and Categories: To Define a Tax-Exempt Category............................................................262
Use Tax........................................................................................................................................................... 263
Use Taxes: General Information...........................................................................................................263
Use Taxes: Configuration Prerequisites...............................................................................................264
Use Taxes: Implementation Activity.................................................................................................... 264
Value-Added Taxes.........................................................................................................................................267
Value-Added Taxes: General Information............................................................................................267
Value-Added Taxes: Configuration Prerequisites................................................................................269
Value-Added Taxes: To Create a General VAT and Exempt VAT.......................................................... 269
Value-Added Taxes: Partially Deductible VAT......................................................................................272
Value-Added Taxes: To Create a Partially Deductible VAT.................................................................. 273
Value-Added Taxes: Reverse VAT......................................................................................................... 274
Value-Added Taxes: To Create a Reverse VAT......................................................................................275
Value-Added Taxes: Pending VAT.........................................................................................................277
Value-Added Taxes: To Create a Pending VAT..................................................................................... 277
Value-Added Taxes: Inclusive Output and Input VATs at the Document Level.................................. 280
Value-Added Taxes: Statistical VAT...................................................................................................... 283
Value-Added Taxes: To Create a Statistical VAT and Inclusive VATs................................................... 283
Withholding Taxes..........................................................................................................................................285
Withholding Taxes: General Information.............................................................................................285
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Withholding Taxes: Configuration Prerequisites.................................................................................286

Withholding Taxes: Implementation Activity...................................................................................... 287
Implementing Order Management........................................................................................................290
Basic Order Management..............................................................................................................................290
Order Management Basic Configuration: General Information......................................................... 290
Order Management Basic Configuration: Implementation Checklist................................................291
Order Management Basic Configuration: Implementation Activity...................................................292
Order Management with Inventory.............................................................................................................. 292
Configuration of Order Management: General Information...............................................................292
Order Management with Inventory Configuration: Implementation Checklist................................ 293
Configuration of Order Management: Implementation Activity........................................................ 295
Sales Order Types.......................................................................................................................................... 298
Sales Order Types: General Information............................................................................................. 298
Sales Order Types: Implementation Checklist....................................................................................300
Sales Order Types: To Configure the SO Order Type.......................................................................... 302
Sales Order Types: To Configure the IN Order Type........................................................................... 303
Replenishment for Stock Items.....................................................................................................................304
Configuration of Replenishment: General Information......................................................................304
Configuration of Replenishment: Classes and Sources of Replenishment....................................... 307
Configuration of Replenishment: Replenishment Methods...............................................................308
Configuration of Replenishment: Demand Forecast Model............................................................... 311
Configuration of Replenishment: Example of Parameter Calculation...............................................314
Configuration of Replenishment: Configuration Prerequisites..........................................................317
Configuration of Replenishment: To Configure Replenishment for an Item–Warehouse Pair......... 318
Configuration of Replenishment: To Calculate and Apply Replenishment Parameters................... 322
Purchase Requisitions................................................................................................................................... 325
Purchase Requisition Configuration: General Information................................................................ 325
Purchase Requisition Configuration: Setup of Budget Validation for Internal Requests..................327
Purchase Requisition Configuration: Configuration Prerequisites.................................................... 328
Purchase Requisition Configuration: To Create an External Request Class.......................................328
Purchase Requisition Configuration: To Set Up Budget Validation for Internal Requests................330
Implementing Customer Relationship Management...............................................................................333
Basic Customer Relationship Management................................................................................................. 333
Configuring CRM Functionality: General Information........................................................................ 333
Configuring CRM Functionality: Implementation Checklist............................................................... 335
Configuring CRM Functionality: Implementation Activity..................................................................337
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Duplicate Validation...................................................................................................................................... 338

Duplicate Validation: General Information......................................................................................... 338
Duplicate Validation: Rules.................................................................................................................. 339
Duplicate Validation: Calculation of Validation Scores...................................................................... 341
Duplicate Validation: Implementation Checklist................................................................................ 342
Duplicate Validation: Implementation Activity...................................................................................344
Integration with HubSpot..............................................................................................................................346
Integration with HubSpot: General Information.................................................................................346
Integration with HubSpot: Enhanced HubSpot Data Provider.......................................................... 347
Integration with HubSpot: Data Flow Between Systems................................................................... 351
Integration with HubSpot: Lead and Contact Synchronization Issues.............................................. 352
Integration with HubSpot: Configuration Prerequisites.....................................................................354
Integration with HubSpot: To Configure the HubSpot Enhanced Data Provider.............................. 354
Integration with HubSpot: To Synchronize Leads.............................................................................. 355
Integration with HubSpot: To Synchronize Contacts......................................................................... 357
Integration with HubSpot: To Synchronize Accounts.........................................................................358
Integration with HubSpot: To Synchronize Marketing List.................................................................360
Integration with HubSpot: To Schedule Synchronization Processes................................................ 363
Integration with HubSpot: To Resolve Synchronization Issues......................................................... 364
Integration with Hubspot: To Configure the HubSpot Data Provider................................................365
Implementing Project Accounting........................................................................................................ 366
Basic Project Accounting...............................................................................................................................366
Basic Project Configuration: General Information..............................................................................366
Basic Project Configuration: Implementation Checklist.................................................................... 368
Basic Project Configuration: Implementation Activity....................................................................... 369
Employee Time Tracking............................................................................................................................... 370
Time Tracking Configuration: General Information............................................................................370
Time Tracking Configuration: Implementation Checklist.................................................................. 371
Time Tracking Configuration: To Configure Time Tracking in Projects............................................. 373
Time Tracking Configuration: Tracking Time with Time Activities.................................................... 374
Time Tracking Configuration: To Track Time with Time Activities.....................................................375
Project Budgets with Cost Codes..................................................................................................................376
Cost Codes: General Information........................................................................................................ 376
Cost Codes: Configuration Prerequisites............................................................................................ 377
Project Mailings..............................................................................................................................................378
Project Mailing Configuration: General Information.......................................................................... 378
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Project Mailing Configuration: Invoice Mailings................................................................................. 379

Project Mailing Configuration: Pro Forma Invoices............................................................................ 380
Project Mailing Configuration: Project Quotes................................................................................... 380
Implementing Service Management..................................................................................................... 381
Basic Service Management Configuration................................................................................................... 381
Basic Service Management Configuration: General Information.......................................................381
Basic Service Management Configuration: Implementation Checklist............................................. 383
Basic Service Management Configuration: Implementation Activity................................................ 385
Branch Locations........................................................................................................................................... 388
Branch Locations: General Information.............................................................................................. 388
Branch Locations: Implementation Activity........................................................................................389
Service Order Types.......................................................................................................................................390
Service Order Types: General Information..........................................................................................390
Service Order Types: General Settings................................................................................................ 391
Service Order Types: Implementation Checklist................................................................................ 392
Service Order Types Without Inventory Sales: To Create a Service Order Type with AR Documents
Generated for Billing............................................................................................................................ 394
Service Order Types: To Create a Service Order Type for Quotes...................................................... 395
Service Order Types: To Create a Service Order Type for Internal Appointments.............................397
Service Order Types: To Create a Service Order Type for Route Appointments................................398
Service Order Types: Tracking of Staff Member Time........................................................................ 399
Service Order Types: Attributes........................................................................................................... 400
Service Order Types for Inventory Sales...................................................................................................... 401
Service Order Types for Inventory Sales: General Information..........................................................401
Service Order Types: Implementation Checklist................................................................................ 401
Service Order Types for Inventory Sales: To Review Sales Order Types............................................403
Service Order Types for Inventory Sales: To Create a Service Order Type with Sales Orders Generated
for Billing...............................................................................................................................................405
Service Order Types for Inventory Sales: To Create a Service Order Type with SO Invoices Generated
for Billing...............................................................................................................................................406
Service Order Types: Quick Processing Settings................................................................................ 408
Service Order Types: To Configure Quick Processing for a Service Order Type................................ 408
Service Classes...............................................................................................................................................409
Service Classes: General Information..................................................................................................410
Service Classes: To Create a Service Class for Services with Fixed Prices......................................... 411
Service Classes: To Create a Service Class for Services Billed by Time............................................. 412
Billing Cycles.................................................................................................................................................. 414
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Billing Cycles: General Information..................................................................................................... 414

Billing Cycles: Examples....................................................................................................................... 415
Billing Cycles: To Create a Billing Cycle and Assign a Billing Cycle to a Customer............................ 424
Billing Cycles: Assignment of Multiple Billing Cycles......................................................................... 426
Skills................................................................................................................................................................427
Skills: General Information.................................................................................................................. 427
Skills: To Create a Skill......................................................................................................................... 428
Skills: To Assign a Skill to a Service.....................................................................................................429
Skills: To Assign a Skill to a Staff Member...........................................................................................431
Licenses.......................................................................................................................................................... 432
Licenses: General Information............................................................................................................. 432
License: To Create a License Type and Assign It to a Service.............................................................433
License: To Create a License and Assign It to a Staff Member........................................................... 435
Services...........................................................................................................................................................436
Services: General Information............................................................................................................. 436
Services: To Create a Service with a Fixed Price.................................................................................437
Services: To Create a Service Billed by Time...................................................................................... 439
Service Areas.................................................................................................................................................. 441
Service Areas: General Information.....................................................................................................441
Service Areas: To Add a Service Area and Assign a Staff Member to It.............................................. 442
Staff Members................................................................................................................................................ 444
Staff Members: General Information................................................................................................... 444
Staff Members: Management of Staff Members' Information............................................................ 444
Staff Members: Implementation Activity.............................................................................................446
Staff Schedules.............................................................................................................................................. 447
Staff Schedules: General Information................................................................................................. 447
Staff Schedules: Overview of the Setup Process................................................................................ 448
Staff Schedules: To Create a Schedule Rule and Generate the Work Schedule................................ 449
Staff Schedules: Modifying Working Hours on the Schedule Board.................................................. 452
Implementing Equipment Management................................................................................................ 455
Configuring Equipment Management.......................................................................................................... 455
Equipment Management: General Information..................................................................................455
Equipment Management: Implementation Checklist........................................................................ 456
Equipment Management: Implementation Activity........................................................................... 457
Implementing Route Management....................................................................................................... 459
Configuring Route Management................................................................................................................... 459
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Route Management: General Information.......................................................................................... 459

Route Management: Implementation Checklist................................................................................. 460
Route Management: Implementation Activity....................................................................................462
Implementing Manufacturing...............................................................................................................464
Preparing the System for Manufacturing Implementation......................................................................... 464
System Preparation for Manufacturing Implementation: General Information................................464
System Preparation for Manufacturing Implementation: General Ledger Accounts........................ 471
System Preparation for Manufacturing Implementation: Implementation Checklist...................... 472
System Preparation for Manufacturing Implementation: Implementation Activity......................... 475
Implementing Bills of Material: General Process......................................................................................... 482
Configuring Production Order Types............................................................................................................484
Production Order Types: General Information................................................................................... 484
Production Order Types: Implementation Checklist.......................................................................... 486
Production Order Types: To Create a Regular Production Order Type..............................................487
Production Order Types: To Create a Planning Production Order Type............................................489
Production Order Types: To Create a Disassembly Production Order Type......................................491
Implementing Production of Lot- or Serial-Tracked Items..........................................................................492
Configuration for the Production of Lot- or Serial-Tracked Items: General Information.................. 493
Configuration for the Production of Lot- or Serial-Tracked Items: Implementation Activity............495
Implementing Outside Processing................................................................................................................500
Outside Processing Configuration: General Information................................................................... 500
Outside Processing Configuration: Material Storage and Delivery.................................................... 502
Outside Processing Configuration: Charges for Subcontractor Services...........................................503
Outside Processing Configuration: Implementation Activity.............................................................504
Implementing Item Production with Backflushing..................................................................................... 508
Configuration of Production with Backflushing: General Information..............................................508
Configuration of Production with Backflushing: Implementation Activity....................................... 509
Implementing Production with Scrap, Waste, and By-Products.................................................................513
Configuration of Scrap, Waste, and By-Products in Production: General InformationConfiguration of
Scrap and Waste in Production: General Information........................................................................513
Configuration of Scrap, Waste, and By-Products in Production: Scrap QuarantineConfiguration of
Scrap and Waste in Production: Scrap Quarantine............................................................................ 515
Configuration of Scrap, Waste, and By-Products in Production: By-Products.................................. 517
Configuration of Scrap, Waste, and By-Products in Production: Implementation ActivityConfiguration
of Scrap and Waste in Production: Implementation Activity............................................................. 518
Configuring MRP............................................................................................................................................ 522
MRP Configuration: General Information............................................................................................522
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MRP Configuration: System Settings...................................................................................................526

MRP Configuration: Variable Manufacturing Lead Times...................................................................530
MRP Configuration: Prerequisites........................................................................................................532
MRP Configuration: Implementation Activity..................................................................................... 532
 Copyright | 14

Copyright

© 2022 Acumatica, Inc.

ALL RIGHTS RESERVED.

No part of this document may be reproduced, copied, or transmitted without the express prior consent of
Acumatica, Inc.
3933 Lake Washington Blvd NE, # 350, Kirkland, WA 98033

Restricted Rights
The product is provided with restricted rights. Use, duplication, or disclosure by the United States Government is
subject to restrictions as set forth in the applicable License and Services Agreement and in subparagraph (c)(1)(ii)
of the Rights in Technical Data and Computer Soware clause at DFARS 252.227-7013 or subparagraphs (c)(1) and
(c)(2) of the Commercial Computer Soware-Restricted Rights at 48 CFR 52.227-19, as applicable.

Disclaimer
Acumatica, Inc. makes no representations or warranties with respect to the contents or use of this document, and
specifically disclaims any express or implied warranties of merchantability or fitness for any particular purpose.
Further, Acumatica, Inc. reserves the right to revise this document and make changes in its content at any time,
without obligation to notify any person or entity of such revisions or changes.

Trademarks
Acumatica is a registered trademark of Acumatica, Inc. HubSpot is a registered trademark of HubSpot, Inc.
Microso Exchange and Microso Exchange Server are registered trademarks of Microso Corporation. All other
product names and services herein are trademarks or service marks of their respective companies.

Soware Version: 2022 R2

Last Updated: 01/30/2023
 Acumatica ERP Implementation Guide | 15

Acumatica ERP Implementation Guide

You must complete the instructions described in the Preparing an Instance for Implementation, Preparing a Company
for Implementation, and Implementing Basic Financials chapters before you can proceed further. Other chapters of
the guide are focused on the implementation of a particular functional area or capability and can be completed in
any order.
 Preparing an Instance for Implementation | 16

Preparing an Instance for Implementation

Aer you install a new instance of Acumatica ERP, the system needs to be prepared for the further implementation.
When you sign in to a new Acumatica ERP instance, the only form you can access is the Enable/Disable Features
(CS100000) form, which you use to enable the features in accordance with the license you have bought. Then
you need to set up system-wide security policies and create user accounts for every person to be involved into
implementation of your production instance.
Aer you complete the instance preparation, you may proceed to configuring the basic Acumatica ERP functionality
for the company according to your organization structure.
The topics of this chapter explain how to activate a new Acumatica ERP instance, enable features that are
included in your license, configure initial security policy, and create user accounts for people involved in the
implementation.

Preparing an Instance: General Information

When you install a new blank instance of Acumatica ERP, the product features are disabled and the Acumatica ERP
instance is in trial mode. To start implementation, you need to activate the instance by enabling the default set
of features. Then you apply the license and enable any purchased features that are not in the default set. We also
recommend that you configure system-wide security policies and create user accounts for every person who will be
involved in further implementation to secure access to the system and track the activities performed by the people
who access the system.

Learning Objectives
In this chapter, you will learn how to do the following:
• Activate the Acumatica ERP instance by enabling the default set of features
• Activate the product license for the Acumatica ERP instance
• Review product license details
• Configure system-wide security policies
• Create users for people to be involved in further implementation

Applicable Scenarios
You prepare an instance when you initially implement Acumatica ERP.

Workflow of Instance Preparation

To prepare a new blank instance of Acumatica ERP for further implementation, you perform the following general
steps:
1. You sign in to the instance for the first time and enable the standard set of features on the Enable/Disable
Features (CS100000) form. For details, see Preparing an Instance: Activation and Licensing.
2. You apply the license you have obtained by creating a support case through the Partner Portal. For details,
see Preparing an Instance: Activation and Licensing.
3. You configure system-wide security policies and create user accounts for people to be involved in the
implementation process. For details, see Preparing an Instance: System-Wide Security Policy.
 Preparing an Instance for Implementation | 17

Preparing an Instance: Implementation Checklist

You can use the tables in this topic to quickly check whether the preparation steps are being performed in
Acumatica ERP. The following tables cover both mandatory and recommended preparation steps.

The person who performs the initial configuration uses the admin username and the initial password
only until the accounts for the persons participating in implementation are created (in the last task
of initial configuration). We recommend that aer initial configuration, the users use their personal
usernames and passwords to access the system.

Table: Mandatory Configuration

To ensure that the instance has been implemented properly, make sure that the necessary features have been
enabled and the needed entities have been created, as listed in the following table.

Form Criteria to Check

Enable/Disable Features (CS100000) The default set of features has been enabled for the instance.

Activate License (SM201510) A license key has been entered and activated. The license details are
correct.

Table: Recommended Configuration

The settings listed in the following table can be specified to secure the process of implementation.

Form Criteria to Check

Security Preferences (SM201060) The system-wide security policy has been configured to ensure that
access to the tenant in implementation is secure and to track activities
performed with the tenant by people involved in the process.

Users (SM201010) User accounts for people involved in the implementation have been
created, by using the Users (SM201010) form.
For each user, at least the following settings have been specified:
• Username (login)
• Initial password to be changed on the first sign-in
• Email address
• Set of predefined roles that allow access to all system resources

Preparing an Instance: Activation and Licensing

To start implementation, you need to activate the instance by enabling the default set of features. Then you apply
the license and enable any purchased features that are not in the default set.
In this topic, you will read about the first sign-in to a new blank instance, feature enabling, and the limitations of
trial and license modes.
 Preparing an Instance for Implementation | 18

License Obtainment
You obtain a license by creating a support case through the Partner Portal. You submit the following information:
• Installation ID: The installation ID is available in the About dialog box of the Acumatica ERP application
instance. To open this dialog box, on any Acumatica ERP form, select Tools > About.
• Contract ID: You can find this ID on your Acumatica ERP sales invoice.
Aer your license request is processed, you will receive a license key. Acumatica uses a licensing server to validate
licenses. If the server where you installed the Acumatica ERP instance has no access to the Internet, because of the
Acumatica security policy, you may request a license file instead of the key.
You apply the key to your instance by clicking Enter License Key on the form toolbar of the Activate License
(SM201510) form, enter the license key in the Activate New License dialog box, and click OK. The system contacts
the licensing server and validates the license online.

To validate your license, the licensing server requires that port 443 is open on the computer that is
running the Acumatica ERP instance where you enter the key. You may have to open port 443 if the
computer has a firewall enabled.

To apply the license file, you click Upload License File on the form toolbar, and then select and upload the license
file by using the Upload New License File dialog box.

First Sign-In to Acumatica ERP

Preparing an instance is performed under the only active user account (admin) that comes with every Acumatica
ERP instance. This user has sufficient access rights to perform the instance preparation.
The initial credentials for the default user account are admin for the username and setup for the password. When
you try to sign in for the first time, the system requires you to change the password.
When you sign in to a new Acumatica ERP instance and attempt to navigate to any form, the system brings up the
Enable/Disable Features (CS100000) form (the only form you can access), which you use to enable the default set of
features. Aer the default set of features is enabled, you are able to access the Activate License (SM201510) form,
where you can activate your license key if you want to remove the trial mode restrictions. If you want to proceed
with the trial mode, you can enable any other features available.

Product Features
Acumatica ERP provides a scalable core system functionality and offers a range of add-on features. On the Enable/
Disable Features (CS100000) form, you can view and modify the list of enabled features according to your license
limitations.
Only aer you enable a feature do all feature-related forms and individual elements appear in Acumatica ERP.
Some features may add only additional elements to the available forms, and others may enable a workspace or a
set of workspaces with multiple forms. For example, the Projects menu item appears on the main menu only if the
Project Accounting feature is enabled. If you enable the Tax Entry From GL Module feature, it only adds additional
elements to the Journal Transactions (GL301000) form, which is available with the default set of features.
The Enable/Disable Features form also displays (at the top of the form) the state of the currently selected feature set
—that is, the set of functionality available in your instance of Acumatica ERP. The following states are possible:
• Pending Activation: The system displays this status when you access the form for the first time to enable the
standard set of features. Also, the system displays the status aer you click Modify on the form toolbar to
change the selection of features. This status indicates that the current settings on the form do not reflect the
actual set of functionality available in Acumatica ERP.
 Preparing an Instance for Implementation | 19

• Validated: The system displays this status when you have enabled the features selected on the form by
clicking Enable on the form toolbar. With this status, the settings on the form reflect the actual set of
functionality available in your instance of Acumatica ERP.
Before you start implementing Acumatica ERP, you may find it helpful to become familiar with the functionality to
be implemented and the add-on features your organization has included in the license. For details, see Preparing an
Instance: Acumatica ERP Features.

You can also use the Enable/Disable Features form to disable individual features in Acumatica ERP.
We recommend that you not disable any feature aer it has been enabled and used in the live system;
this may cause unexpected results, including data loss.

Trial and License Modes

By default, Acumatica ERP is installed in trial mode. Although in this mode all features are available, the mode has
the following restrictions:
• You can create no more than 10 tenants per instance.
• All tenants that you create have the Test Tenant status.
• The watermark is added to all printed forms and reports.
• Only two conventional users can concurrently use the system. Each time a third conventional user signs in
to Acumatica ERP, one of the current users is forcibly signed out. The following message is displayed at the
bottom of each form, followed by the Activate link you can click to activate a license: Your product is in trial
mode. Only two concurrent users are allowed.
• Only two API users can concurrently use the system. A third API user cannot sign in to Acumatica ERP and
receives an error during the signing in.
In trial mode, you can enable and use any feature. For a production site, you should activate the full-product
license, thus running the system in license mode. Aer the license activation, the system hides the features that are
not included in your license on the Enable/Disable Features form, and you will not be able to enable these features.
When you obtain the license for using Acumatica ERP and apply this license to an instance, the trial mode
restrictions are removed. The license defines the license tier (that is, the level of resources that you can utilize by
using the license) and the set of features you can enable for the instance. For details on license tiers, see Typical
Hardware and Virtual Machine Configurations for PCS and PCP Licenses.

During licensing and activation, the application instance is restarted. When you apply a license on a
non-testing environment, make sure that all users of your website are warned about the restart of the
site so that they can save all work in progress.

If you use Acumatica Self-Service Portal, you have to obtain a license for the Self-Service Portal instance, activate
the license, and then activate the required Self-Service Portal features. For details, see Configuring the Self-Service
Portal.

Preparing an Instance: To Enable Features and Activate the License

In the following activity, you will learn how to enable features in Acumatica ERP, activate the license, and review
the license information.

Story
Suppose that the SweetLife Fruits & Jams company has purchased an Acumatica ERP subscription in Acumatica
Business Cloud. The instance has been installed by SaaS engineers. You, as a system administrator, have received
the instance URL and the credentials to the admin user. Now you need to prepare the instance for implementation.
 Preparing an Instance for Implementation | 20

You are the first one to sign in to the instance, and activate and license it with the product key you have obtained
from the sales representative. The company has purchased the S1 license tier with three concurrent users and five
tenants. In addition to the default set of features, your company has purchased the basic functionality associated
with the Inventory and Order Management group of features.

Process Overview
To begin using the system aer the installation, you will use the Enable/Disable Features (CS100000) form to enable
the standard set of features, which gives you the ability to access the Activate License (SM201510) form. When you
enable the features, you are still in trial mode. To remove the restrictions of the trial mode, you need to activate the
license and enable the features that you bought in addition to the standard set.

System Preparation
Before you perform the steps of this activity, make sure that the following tasks have been performed:
1. You have installed an unlicensed Acumatica ERP instance in a tenant without any preloaded dataset (out-of-
the-box).
2. You make sure that the port 443 is open on the computer that is running the Acumatica ERP instance. You
may have to open port 443 if the computer has a firewall enabled.
3. You have signed in to Acumatica ERP with the following credentials:
• Username: admin
• Password: setup or the one provided to you by the person who did the installation

Step 1: Enabling Features for the First Time

To enable features in Acumatica ERP for the first time, do the following:
1. Open the Enable/Disable Features (CS100000) form.
Notice that a number of features are selected by default and the activation status is Pending Activation, as
shown in the following screenshot.

Figure: Activation status of initial features

2. On the toolbar, click Enable to activate the selected features.

The status of the currently selected feature set is now Validated. On the main menu (the panel on the
le side of the screen), notice that new workspace menu items (Time and Expenses, Finance, Banking,
Payables, and Receivables) have appeared that correspond to the features you have enabled, as the
following screenshot demonstrates. You can now navigate to the forms in these workspaces.
 Preparing an Instance for Implementation | 21

Figure: Activation status of the enabled features

Step 2: Activating the License

To activate the license, do the following:

Before you proceed with license activation on a real website, make sure that any Acumatica ERP users
have saved their work and signed out of the system. During license activation, the Acumatica ERP
instance will be restarted, and any unsaved work will be lost.

1. Open the Activate License (SM201510) form and do the following:

a. On the form toolbar, click Enter License Key.
b. In the Activate New License dialog box, enter the 918B-A728-0569-7FC6-D058 license key.
c. Click OK at the bottom of the dialog box.
The system contacts the licensing server and validates the license online.

The license key used in this activity is for training purposes only. The license will be
deactivated in 24 hours and the instance will return to the trial mode. The license can be
applied to an instance only once.

2. In the Agree to Proceed dialog box, which opens, click the link to read the soware license agreement, and
if you agree to the terms of the agreement, click Agree to proceed with activation, and close the dialog box.
3. In the Summary area, review the license status (Valid), its validity period, and the number of users and
tenants.
4. In the table, review the features that this license supports.
 Preparing an Instance for Implementation | 22

You can use the column filter for the Activated column to filter activated features.

5. In the Summary area, click Apply License to activate your license, and the system will restart the instance.

Step 3: Enabling Additional Features

To enable additional features in Acumatica ERP, do the following:
1. Open the Enable/Disable Features (CS100000) form.
Notice that the list of features is narrowed to the features allowed by the applied license.
2. On the form toolbar, click Modify.
3. In the list of features, select the check box next to the Inventory and Order Management feature.
4. On the toolbar, click Enable to activate the selected features.
The status of the currently selected feature set is now Validated. On the main menu, notice that new
workspace menu items (Sales Orders, Purchases, and Inventory) have appeared that correspond to the
feature you have enabled. You can now navigate to the forms in these workspaces.

Step 4: Reviewing the License Information

To review the license information—which includes the license status and limitations, statistics about the
commercial transactions, warnings, and statistics for constraints—do the following:
1. Open the License Monitoring Console (SM604000) form.
2. On the License tab, which is shown in the screenshot below, review the information about your license.
• In the License Status read-only box, verify that the license status is Valid, which means that the instance
is licensed and has been activated.
• In the License Details section, review the instance limitations.
• In the Recommended Maximums section, notice that the value in the Concurrent Users box is set to 3.
This means that three users can work in the system at the same time.

Figure: License Monitoring Console

 Preparing an Instance for Implementation | 23

Preparing an Instance: System-Wide Security Policy

Acumatica ERP provides a wide range of tools for security control. You can implement your organization's security
regulations by configuring and maintaining system-wide security policies for user accounts, passwords, and
security auditing.
In this topic, you will read about the tools we recommend that you use for ensuring that access to your tenant in
implementation is secure.

User Accounts for Implementers

Initially, the only active user account (admin) is available for signing in to a new instance. We do not recommend
using this account for implementation purposes, however. The account should be used only for activating and
licensing the instance and configuring secure access for the people involved in the implementation.
The system implementation usually involves third-party implementation consultants as well as people from your
company who are assigned to the implementation project. We highly recommend creating user accounts for
everyone involved in the process to ensure that access is secure and that only authorized people access the system.
In Acumatica ERP, access to information is controlled primarily by the roles assigned to the user who signs in to the
system. Roles generally correspond to particular job assignments or functions of groups of users. When they sign
in, the users authenticate themselves by using the appropriate username and password, and the associated roles
determine which system resources they may access.
You add user accounts for people involved in the implementation by using the Users (SM201010) form. For each
user, you specify at minimum the username, the initial password (to be changed on the first sign-in), and the email
address. Implementers should be able to access all system resources to implement the system. To allow this, you
need to assign these users a set of predefined roles that allows access to all system resources.
At this point, a system email account is not configured yet, and you need to find a secure way to pass user
credentials (username and initial password) to the people.

System-Wide Password Policies

In Acumatica ERP, you can use the Security Preferences (SM201060) form to set up the password policies for all user
accounts defined in the system.

If your Acumatica ERP instance is integrated with Active Directory, the password policy for domain
users is set at the domain level through Active Directory. For more information about the integration
of Acumatica ERP with Active Directory, see Integration with Active Directory.

You can set up the system password policy to control the following:
• Password duration: For maximum security, we recommend that users change passwords periodically, such
as every 90 to 180 days. Shorter ranges can reduce the security of accounts, because users may use simple
passwords or struggle to create complex, memorable passwords oen, which encourages them to write
down these passwords. You use the Force User to Change Password Every x Days check box to specify the
change frequency.
• Password length: You can set up a minimum required password length. You use the Minimum Password
Length x Characters check box to specify the minimum length.
• Password complexity: You can enforce password complexity requirements, which means that a new
password must include at least three of the following:
• Latin uppercase letters (A–Z)
• Latin lowercase letters (a–z)
 Preparing an Instance for Implementation | 24

• Digits (0 through 9)
• Special characters (such as +, :, =, and -)
You use the Password Must Meet Complexity Requirements check box to enforce complexity
requirements.
• Password validation mask: You can configure an additional password validation mask to enforce your
company's password policy. You can specify a regular expression to enforce additional regulations—for
example, to exclude some special characters that are not supported by third-party soware (if used).
You can use a validation mask in addition to password length or complexity requirements or use only
your validation mask and clear the length or complexity requirements. For example, the following regular
expression covers length and complexity requirements and forbids the $ and ^ symbols: ^(?=.*[A-Za-
z])(?=.*\d)(?=.*[@!%*#?&])[A-Za-z\d@!%*#?&]{10,}$. With this validation mask, there is
no need to set up password length and complexity settings.
If you use a validation mask, you should provide a custom alert message that explains to users the password
policy enforced by the validation mask. Otherwise, the system displays the default message.
You use the Additional Password Validation Mask and Incorrect Password Alert boxes to configure
custom password requirements.
To improve password security, a hashing algorithm is used to process passwords, and only hash values are stored
in the database.

System-Wide Account Lockout Policies

You can configure the system to lock out a user account aer a particular number of failed sign-in attempts. This
configuration option helps to stop an unauthorized person who might be trying to gain system access by guessing a
user's password.
On the Security Preferences (SM201060) form, you can specify the following system-wide parameters:
• The number of failed sign-in attempts that will cause a user account to be locked out
• The duration of the account lockout—that is, the number of minutes the user account remains locked before
the system automatically unlocks it
• The time period before the system resets the counter of the failed sign-in attempts.

Preparing an Instance: To Configure Secure Access for Implementers

In the following activity, you will learn how to configure system-wide password and lockout policies and how to
create user accounts for implementers.

Story
Suppose that the SweetLife Fruits & Jams company has purchased a cloud subscription for Acumatica ERP. You,
as a system administrator, need to configure the secure access for the production tenant of the Acumatica ERP
instance.
The company has the following security requirements:
• Users should change their passwords twice a year—that is, every 180 days.
• The minimum password length is 10 symbols without spaces.
• A password must include Latin uppercase and lowercase letters, digits, or special characters, except for $
and ".
• A user has three attempts to enter a valid password; if an invalid password is entered on the fourth attempt,
the user will be locked out for 15 minutes.
 Preparing an Instance for Implementation | 25

• The system should reset the lockout counter when it has been 10 minutes since the first failed sign-in. That
is, if a user enters the third invalid password 11 minutes aer the first failed attempt, the system will not lock
out the user, because the count of failed attempts was restarted 10 minutes aer the first failed attempt.
The following people are to be involved in the implementation process:
• You—Kimberly Gibbs, the system administrator with the SweetLife Fruits & Jams company
• Jerry Prado, who is an implementation consultant with the Adaptabiz company, one of Acumatica's
partners

Process Overview
To configure system-wide security policies, you will use the settings on the Security Preferences (SM201060) form.
To meet character exception requirements, you will use a validation mask in addition to the password length and
complexity requirements, and set up a custom alert message for incorrect passwords.
Then you will add the requested user accounts on the Users (SM201010) form. You will use your user account to
validate the configured policies.

System Preparation
Before you perform the steps of this activity, make sure that the following tasks have been performed:
1. You have installed an Acumatica ERP instance with a tenant without any preloaded dataset (out-of-the-box).
2. You have signed in to Acumatica ERP with the following credentials:
• Username: admin
• Password: The one that you have entered during the first sign-in
3. You have enabled the default set of features on the Enable/Disable Features (CS100000) form, as described in
Preparing an Instance: To Enable Features and Activate the License.

Step 1: Configuring the Password Policy

To configure the system-wide password policy, do the following:
1. Open the Security Preferences (SM201060) form.
2. In the Password Policy section of the form, select the Force User to Change Password Every check box,
and type 180 into the Days box next to it.
3. Make sure that the Minimum Password Length check box is selected, and type 10 into the Characters box
next to it.
4. Make sure that the Password Must Meet Complexity Requirements check box is selected, which will force
users to use complex passwords with uppercase letters, digits, and special characters.
5. In the Additional Password Validation Mask box, type the following regular expression: ^(?!.*[$
"]).*$. The expression verifies that the entered password has no spaces and does not contain the $ or "
character.
6. In the Incorrect Password Alert box, type the following text: The password length must be at
least 10 characters without spaces. The password must contain characters
from three of the following four categories: English uppercase characters
(A through Z); English lowercase characters (a through z); base 10 digits
(0 through 9); and non-alphabetic characters (such as !, #, and %). The
following characters must be excluded: $ and ".

The box is expandable; you may want to adjust its size to be able to view the entire message.
 Preparing an Instance for Implementation | 26

7. On the form toolbar, click Save.

Step 2: Configuring Account Lockout Policies

While you are still on the Security Preferences (SM201060) form, in the Account Lockout Policy section, review the
following default values inserted by the system and make sure that they match the organization’s account lockout
policies:
• Lock Account Aer x Unsuccessful Login Attempts: 3
• Lock Account for x Minutes: 15.
• Reset Lockout Counter Aer x Minutes: 10.

Step 3: Adding User Accounts

To add user accounts to the system, do the following:
1. Open the Users (SM201010) form.
2. On the form toolbar, click Add New Record.
3. In the Login box of the Summary area, type gibbs.
4. Clear the Generate Password check box.
5. In the Password box, type Welcome123.
6. Specify the following user information:
• First Name: Kimberly
• Last Name: Gibbs
• Email: [email protected]
• Comment: Senior system administrator
7. Specify the following settings to configure individual password policy:
• Allow Password Recovery: Cleared
• Allow Password Changes: Selected
• Password Never Expires: Cleared
• Force User to Change Password on Next Login: Selected
8. On the Roles tab, assign the following roles to the user by selecting the check box in the Selected column:
• Administrator
• Customizer
• Field-Level Audit
• Internal User
• Wiki Admin
9. On the form toolbar, click Save.
10.Click Add New Record on the form toolbar to add one more user, and specify the following settings in the
Summary area:
• Login: prado
• Generate Password: Cleared
• Password: Welcome123
• First Name: Jerry
• Last Name: Prado
• Email: [email protected]
 Preparing an Instance for Implementation | 27

• Comment: Adaptabiz implementation consultant

• Allow Password Recovery: Cleared
• Allow Password Changes: Selected
• Password Never Expires: Cleared
• Force User to Change Password on Next Login: Selected
11.On the Roles tab, assign the following roles to the user by selecting the check box in the Selected column:
• Administrator
• Customizer
• Field-Level Audit
• Internal User
• Wiki Admin
12.On the form toolbar, click Save.

Step 4: Verifying the Password Policy

To verify the configured password policy, do the following:
1. In the top right corner of the screen, click the admin admin username, and then select Sign Out.
2. On the Sign-In page, enter gibbs as the username and Welcome123 as the password. The system
requests that you enter and confirm a new password.
3. Enter welcome"123 as the new password and its confirmation, and click Sign In. Because this password
contains the prohibited " character, the system clears the entered values and displays the alert message
that you configured, as shown in the following screenshot.

Figure: Custom alert message for incorrect password

 Preparing an Instance for Implementation | 28

4. Enter 123Welcome as the new password and its confirmation, and click Sign In. The expression you
entered complies with the password policy requirements and is accepted by the system as your new
password.
5. In the top right corner of the screen, click the Kimberly Gibbs username, and then select Sign Out.

Step 5: Verifying the Lockout Policy

To verify the lockout policy you have configured, do the following:
1. On the Sign-In page, enter gibbs as the username and Welcome123 as the password. The system
requests that you enter valid credentials.
2. Again enter the incorrect password three more times. The system warns you that your account is locked out,
as shown in the following screenshot.

Figure: Account lockout alert message

3. On the Sign-In page, enter prado for the username and Welcome123 as the password. Enter
123Welcome as the new password and its confirmation, and click Sign In. You have successfully signed in
as Jerry Prado.
4. Open the Users (SM201010) form.
5. In the Login box, select gibbs. In the Status box, notice that the user status is Temporarily Locked.
6. On the form toolbar, click Unlock User. Notice that the user status has changed to Active.

Preparing an Instance: Acumatica ERP Features

Acumatica ERP provides scalable core system functionality and includes a range of add-on features, which can be
enabled and disabled on the Enable/Disable Features (CS100000) form.
 Preparing an Instance for Implementation | 29

Finance Group of Features

Feature Overview

Finance The features of this group enables access to financial management that takes managing
your business’ assets, income, and expenses from complex to simple with configurable
processes, mobile anytime access, and best-in-class accounting applications resting on a
single, future-proof platform.

Standard Finan- This group of features is available in all editions of Acumatica ERP. You can enable any of
cials the features in this group on the Enable/Disable Features (CS100000) form—they are in-
cluded in any license.

Multibranch Sup- Provides support for multiple branches. Branches can be configured for points of sale (lo-
port cations), as well as for separate legal entities within your organization, to ensure better
visibility into various layers of financial operations. For details, see Multiple Branch Sup-
port and Basic Models for Multibranch Organization.

If both this feature and the Multicompany Support feature are disabled, only one compa-
ny without branches can be created. If this feature is disabled and the Multicompany Sup-
port feature is enabled, users can create any number of companies without branches.
If you clear this check box to disable the feature and the Multicompany Support check
box is cleared, the system will clear the Inter-Branch Transactions and Customer and
Vendor Visibility Restriction check boxes.

Multicompany Provides support for multiple companies within one tenant. For details, see Companies
Support and Branches.

If both this feature and Multibranch Support feature are disabled, only one company with-
out branches can be created.
If this feature is disabled and the Multibranch Support and Inter-Branch Transactions fea-
tures are enabled, only one company can be created. This company can have the Without
Branches, With Branches Not Requiring Balancing, or With Branches Requiring Balancing
type.
If both this feature and the Inter-Branch Transactions feature are disabled and the Multi-
branch Support feature is enabled, only one company can be created. This company can
have the Without Branches or With Branches Not Requiring Balancing type.
If you clear this check box to disable the feature, the system will clear the Multiple Base
Currencies check box.
If you clear this check box to disable the feature and the Multibranch Support check box
is cleared, the system will clear the Inter-Branch Transactions and Customer and Ven-
dor Visibility Restriction check boxes.

Business Account Supports multiple locations for vendor and customer accounts.
Locations

Multicurrency Ac- Adds forms related to the currency management functionality and support of the follow-
counting ing: multiple currencies across the modules; automatic calculation of the realized gains
and losses and rounding amounts on foreign currency transactions; revaluation of for-
eign currency accounts; and translation of the base currency accounts into any foreign
currency for reporting. For more information, see Currency Management.
 Preparing an Instance for Implementation | 30

Feature Overview

Centralized Period Makes it possible to manage financial periods on the tenant level only; the status of each
Management financial period is the same in all companies. This feature is enabled by default.
You can enable the Centralized Period Management feature if the Multiple Calendar Sup-
port feature is disabled.
You can disable the Centralized Period Management feature only if the Multicompany Sup-
port feature is enabled. Disabling the Centralized Period Management feature makes it
possible to open, close, and lock a particular financial period separately for each compa-
ny within the tenant.
For more information, see Generating Financial Calendars.

Volume Pricing Gives you the ability to define price tiers for item quantities.

Expense Reclassifi- Supports the two-stage release of AP documents: pre-release, when a data entry clerk en-
cation ters a bill or a quick check; and release, when an authorized accountant reviews a pre-re-
leased document, specifies the correct expense accounts (and subaccounts), and releas-
es the document. For details, see Configuring the Reclassification of Expenses.

Tax Entry From GL Gives users the ability to specify taxes for documents entered on the Journal Transactions
Module (GL301000) form.

VAT Reporting Provides accounting and reporting for any value-added tax (VAT) in the system. The fea-
ture makes the VAT tax type option available on the Taxes (TX205000) form, and adds UI
elements that can be used for automatic calculation of tax amounts and for VAT reporting
to the Invoices and Memos (AR301000) and Bills and Adjustments (AP301000) forms. For
details, see Value-Added Taxes: General Information.

1099 Reporting Provides support for configuring 1099 vendors and filing the 1099 MISC form and adds
the corresponding forms, reports, and UI elements. For details, see Filing Out the 1099
Forms.

Net/Gross Entry Gives users the ability to specify the tax calculation mode, which the system will use for
Mode computing a tax amount in a document, when you enter a document in the system man-
ually. Depending on the specified mode, you can enter either tax-inclusive amounts at
the line level or the document level, or tax-exclusive amounts at the line level or the doc-
ument level. You will also be able to activate the tax amount validation functionality in a
document that you enter.
For details, see Purchases with Sales Taxes: Tax Amount Validation.

Invoice Rounding Provides automatic rounding of bill and invoice amounts. For details, see Rounding of
Document Amounts.

Expense Manage- Allows company employees to file their claims for reimbursement of expenses.
ment
For details, see Processing Expense Claims.

Advanced Finan- This group of features is not available in the standard edition of Acumatica ERP. You can
cials enable any of the features in this group if the group of features is available in your li-
cense.

Subaccounts Gives you the ability to use subaccounts in addition to accounts. Subaccounts, which are
configured on the Subaccounts (GL203000) form, are used to detail account balances, for
more granular financial analysis. For details, see Subaccounts: General Information.
 Preparing an Instance for Implementation | 31

Feature Overview

General Ledger Al- Makes possible the creation and maintenance of allocation templates (which define how
location Templates the allocations are to be performed) and the automatic application of allocations accord-
ing to your definitions.

Inter-Branch Makes possible the automatic generation of balancing entries for transactions between
Transactions different companies of one tenant, branches of different companies of one tenant, and
branches that belong to one company and require balancing. For details, see Interbranch
Account Mapping.

You can enable this feature if either the Multicompany Support or Multibranch Support
feature is enabled.
Also, enabling this feature gives you the ability to process sales transactions between le-
gal entities implemented as companies or branches in the same tenant. For details, see
Intercompany Sales: General Information.

If this feature is disabled, users can enter transactions only between branches that be-
long to one company and do not require balancing.

Multiple Base Cur- Turns on the support for multiple base currencies for a limited set of financial areas—gen-
rencies eral ledger, accounts payable, accounts receivable, cash management, currency manage-
ment, and taxes.
For this feature to be enabled, the following features also need to be enabled:
• Multicompany Support
• Multicurrency Accounting
• Customer and Vendor Visibility Restriction
If the Projects group of features is enabled, this feature can be enabled only if the Multicur-
rency Projects feature is enabled.
The following features are not supported if the Multiple Base Currencies feature has been
enabled:
• Purchase Requisitions
• Projects if the Multicurrency Projects feature is disabled
• Customer Portal
• Service Management
• Payroll
• Manufacturing
• Procore Integration
If the Multiple Base Currencies feature is enabled and you select a check box correspond-
ing to one of the listed features, the system displays an error message.
If any of the listed features are enabled and you select the check box corresponding to the
Multiple Base Currencies feature, the system displays an error message that the feature
cannot be enabled.

This feature is currently in Managed Availability and some scenarios may not
be supported yet. We recommend testing the feature before you enable it on
a production instance.
 Preparing an Instance for Implementation | 32

Feature Overview
For details on configuring multiple base currencies, see Multiple Base Currencies: General
Information, Customer Visibility: General Information, Vendor Visibility: General Information,
and Company Groups: General Information.

Customer and Ven- Gives you the ability to limit access to particular customer and vendor records for em-
dor Visibility Re- ployees of a particular company, company group, or branch.
striction
You can enable this feature if either the Multicompany Support feature or the Multibranch
Support feature is enabled.
For details, see Customer Visibility: General Information, Vendor Visibility: General Informa-
tion, and Company Groups: General Information.

Multiple Calendar Provides the ability to configure companies with different fiscal calendars within one ten-
Support ant. For details, see Multiple Calendar Support.
The Multiple Calendar Support feature can be enabled if the Centralized Period Manage-
ment feature (under Standard Financials) is disabled.

General Ledger Provides consolidation of data from specific branches of subsidiaries (or consolidation
Consolidation units) into a specific branch of the parent company. You can configure which data should
be consolidated and how exactly the data should be consolidated. After that, you can
consolidate the data as often as you need to within each financial period.

Translation of Gives you the ability to translate amounts from the base currency to another currency at
Financial State- the account balance level. Translation can be used for reporting purposes in any foreign
ments currency. For details, see Translation of Financial Statements: General Information.

Customer Dis- Gives you the ability to maintain customer discounts in your system: import them or en-
counts ter them manually, and update them. The system automatically applies the customer
discounts to sales orders (or invoices if the Inventory and Order Management group of
features is not enabled) when a user saves the document.
When the feature is disabled, you can enter the discount percent or amount on a line and
document level on data entry forms, but the discount amounts are not posted separately
to a discount account.
For more information, see Customer Discounts: General Information.

Vendor Discounts Gives you the ability to maintain vendor discounts in your system: import them or en-
ter them manually, and update them. The system automatically applies the vendor dis-
counts to purchase orders (or bills if the Inventory and Order Management group of fea-
tures is not enabled) when a user saves the document.
When the feature is disabled, you can enter the discount percent or amount on a line and
document level on data entry forms, but the discount amounts are not posted separately
to a discount account.
For more information, see Configuring Vendor Discounts.

Commissions Makes it possible to configure commission calculations that support your company's
policies.

Overdue Charges Gives you the ability to configure additional charges to be applied to the outstanding bal-
ances of customers who are paying too late or not paying in full.
 Preparing an Instance for Implementation | 33

Feature Overview

Dunning Letter Provides you with the ability to generate dunning letters to notify customers about their
Management overdue documents. You can select how you want to manage a level of dunning letter: by
customer or by overdue document. For details, see Managing Dunning Letters.

Deferred Revenue Adds forms and UI elements related to the deferred revenue functionality and integrates
Management it with accounts payable and accounts receivable, so that users can assign various docu-
ments to deferral schedules for recognizing portions of the deferred amounts. For more
information, see Deferred Revenue.

Revenue Recog- Allows recognition of the revenue of each component in AR documents according to the
nition by IFRS 15/ IFRS 15 or ASC 606 standard (based on the fair value price).
ASC 606
For more information, see Recognition of Revenue from Customer Contracts.

Parent-Child Cus- Makes it possible to configure parent-child relationships between business accounts of
tomer Relation- the Customer and Customer & Vendor types. A parent-child relationship includes the abil-
ship ity for the parent account to pay invoices of the child account, to generate consolidated
statements and reports, and to view a consolidated balance for a parent account that in-
cludes the balances of its child accounts. The relationship can be removed at any time.
For details, see Managing Parent-Child Relationships.

Retainage Support Makes it possible to create documents of the Invoice and Bills type with retained amounts
that will be paid later. Multiple documents are created in the system to process a re-
tainage: the original document (which has retainage withheld) and the retainage docu-
ment or documents (which reflect the retainage amount to be paid).
If the Standard Inventory feature is enabled in addition to this feature, you can also create
purchase orders with retained amounts. For each purchase order, you then create an AP
bill in which the system specifies the retainage settings based on the purchase order set-
tings.
If the Project Accounting feature is enabled in your system in addition to this feature, you
can also create pro forma invoices with retained amounts. For each pro forma invoice,
you then create an AR invoice in which the system specifies the retainage settings based
on the pro forma invoice settings.

Payment Applica- Allows individual lines of accounts payable documents to be paid. When you add lines to
tion by Line AP documents, for each line, you specify the inventory ID, project, project task, and cost
code (if the Cost Codes feature has been enabled).
For more information, see Applying Payments to Particular Lines of AP Documents.

For documents paid by line, the functionality of the Invoice Rounding fea-
ture, if it is enabled, is not applied. However, in documents that are not paid
by lines, invoice amounts are rounded.

Contract Manage- This feature provides the support of contracts, including case processing and contract
ment billing. It makes available forms related to contract processing and provides integration
with accounts receivable and the tracking of time and expenses. For more information,
see Managing Contracts.
 Preparing an Instance for Implementation | 34

Feature Overview

Fixed Asset Man- This feature adds the forms related to fixed asset management, which can be used to cre-
agement ate and manage fixed assets through their useful life, from acquisition to disposal. The
fixed asset functionality integrates with the requisition and purchase order functionality
to facilitate converting purchases into fixed assets without users needing to re-enter da-
ta. For more information, see Fixed Assets.

Inventory and Order Management Group of Features

The Inventory and Order Management group of features, once enabled on the Enable/Disable Features (CS100000)
form, includes basic functionality related to the following:
• Inventory: The basic functionality includes only non-stock items that can be processed in the with sales
orders and purchase orders. For more information, see Inventory Management.
• Sales orders: The basic functionality includes predefined order types, flexible order processing workflows
(which include sending orders by email or printing them and sending them by postal mail), generation of
pick lists, and shipment processing. For more information, see Order Management.
• Purchase orders: The basic functionality includes purchase orders of multiple types, vendor catalogs,
default prices that are updated from current documents, landed cost tracking, and barcode support.
The purchase requisitions functionality is made available by a separate feature of the Inventory and Order
Management group of features, Purchase Requisitions. The other features of the Inventory and Order Management
group of features are divided into two groups, Standard Inventory and Advanced Inventory.
All of the Inventory and Order Management features are briefly described below.

Feature Overview

Inventory and Or- This group of features includes the features associated with the standard functionality of
der Management inventory and order management. You can enable any of the features in this group and
disable the features that will not be used in your implementation if this group is included
in your license.

Inventory Gives you the ability to maintain stock items using forms related to the inventory func-
tionality and use the inventory and order management functionality for creating and pro-
cessing documents that include stock items.
If this feature is not included in your license, you can use the inventory and order man-
agement functionality for creating sales and purchase orders that include non-stock
items and services, as well as releasing invoices and AP bills for these documents. How-
ever, you cannot create shipments for these sales orders or enter purchase receipts for
these purchase orders. Also, inventory transactions are not created if the Inventory fea-
ture is disabled.
If you want users to be able to enter purchase receipts for purchase orders with non-
stock items if the Inventory feature is disabled, you enable the Purchase Receipts Without
Inventory feature.
The Inventory and Purchase Receipts Without Inventory features are mutually exclusive—
that is, you cannot enable one of these features if the other is enabled. If you attempt to
select the check box on the Enable/Disable Features form corresponding to one of these
features and the check box corresponding to the other feature is selected, the system dis-
plays an error indicating that you must disable the other feature first.
 Preparing an Instance for Implementation | 35

Feature Overview

Multiple Units of For each stock item, gives you the ability to define multiple units of measure (UOMs) and
Measure the rules for conversion between them. With this feature not enabled, for each stock
item, you can define only the base unit of measure, which is used for purchasing the item,
selling it, and calculating its available quantity. For more information, see Units of Mea-
sure Configuration: General Information.

Lot and Serial Gives you the ability to track stock items by lot or serial numbers and by expiration dates.
Tracking Acumatica ERP provides flexible numbering schemes for lot and serial numbers and the
ability to track different products differently. For more information, see Items with Lot and
Serial Numbers: General Information.

Blanket and Stan- Makes possible the processing of blanket purchase orders—orders that can be fulfilled
dard Purchase Or- through multiple normal orders. This feature also makes possible the processing of stan-
ders dard purchase orders—orders with products that are purchased regularly in the same
quantities and that can be processed repeatedly. For more information, see Blanket and
Standard Purchase Orders.

Purchase Receipts Provides you with the ability to process purchases and sales of non-stock items by using
Without Inventory purchase receipts and purchase returns when the Inventory feature is disabled on the En-
able/Disable Features form.

The Purchase Receipts Without Inventory and Inventory features are mutually exclusive—
that is, you cannot enable one of these features if the other is enabled. If you attempt to
select the check box on the Enable/Disable Features form corresponding to one of these
features and the check box corresponding to the other feature is selected, the system dis-
plays an error indicating that you must disable the other feature first.

Drop Shipments Gives you the ability to create and track orders for goods that should be delivered directly
to a customer location. For more information, see Sales with Drop Shipping: General Infor-
mation.

Multiple Ware- Adds the ability to configure multiple warehouses. For more information, see Warehous-
houses es: General Information.

Multiple Ware- Supports multiple locations for each warehouse. Some of these locations can be re-
house Locations served for specific inventory transactions, such as receipts, issues, and returns. For more
information, see Warehouse Locations and Single-Step Transfers: General Information.

Inventory Replen- Automates the generation of purchase and transfer orders for the replenishment of stock
ishment items for your warehouse or warehouses. This feature can be enabled only if the Multiple
Warehouses feature is enabled. For more information, see Replenishment for Stock Items.

Matrix Items Makes available the functionality of creating and using matrix items in the system. For
details, see Matrix Items: General Information.

Automatic Packag- Makes it possible for the system to calculate the optimal set of boxes for each sales or-
ing der or a consolidated shipment. The system selects the boxes (based on the list of carrier
boxes), the item packaging options, and the item quantities in the document. If the items
will be shipped through an integrated carrier, the system calculates the shipping costs for
each carrier, so that you can select the best shipping option. For more information, see
Automatic Packaging for Integrated Carriers.

Kit Assembly Makes possible the creation of kit specifications and kit assembly and disassembly ac-
cording to your specifications. For more information on kits, see Inventory Item Kits.
 Preparing an Instance for Implementation | 36

Feature Overview

Related Items Adds the ability to specify the up-sell, cross-sell, and substitute relation types between
stock and non-stock items to improve sales.

Advanced Physical Supports physical counts by inventory IDs, item classes, user-defined cycles, movement
Count classes, or ABC codes. For information, see Configuration of Physical Inventory.

Sales Order to Pur- Supports sales order fulfillment through purchasing. For details, see Purchases for Sale:
chase Order Link General Information.

Custom Order Provides the ability to create custom types of sales orders. For more information, see
Types Custom Sales Order Types.

Purchase Requisi- Makes available forms and UI elements related to the purchase requisition functionali-
tions ty in the system. You can use these forms to create requisition requests and requisitions,
perform bidding to find the best prices, and control budget compliance. For more infor-
mation, see Purchase Requisitions.

Advanced SO In- Gives you the ability to add stock items directly to SO invoices without creating and pro-
voices cessing an associated sales order and shipment. For more information, see Direct Sales:
General Information and Direct Returns: General Information.

Vendor Relations Gives you the ability to configure and manage vendor relations. For more information,
see Managing Vendor Relations.

Warehouse Man- Gives you the ability to perform warehouse operations by using barcode scanners or mo-
agement bile devices.

Fulfillment Gives you the ability to perform fulfillment operations—such as picking, packing, and
shipping items—by using barcode scanners or mobile devices.

Paperless Picking Improves the management of pick lists and gives users the ability to pick items without
printing pick lists (by using a mobile handheld computer with an integrated 1D or 2D bar-
code scanner).

Advanced Picking Gives you the ability to fulfill sales orders by using advanced picking processes, such as
wave picking and batch picking.

Receiving Supports receiving operations, such as receiving and putting away items, by using bar-
code scanners or mobile devices.

Inventory Opera- Supports inventory operations—such as issuing, receiving, transferring, and counting
tions items—by using barcode scanners or mobile devices.

Cart Tracking Makes available the capability to configure carts and track them when performing ware-
house operations by using barcode scanners or mobile devices.
 Preparing an Instance for Implementation | 37

Customer Management Group of Features

Feature Overview

Customer Manage- The enabling of this group of features on the Enable/Disable Features (CS100000) form
ment makes available the forms and UI elements related to the customer management func-
tionality: lead and customer tracking, business opportunities, case management, mar-
keting lists, and campaign management.
For more information, see CRM: General Information.

Case Management Gives you the ability to enter, assign, and resolve cases.
For details, see Managing Cases.

Duplicate Valida- Provides functionality you can use to configure and perform the automatic validation of
tion lead and contact records for duplicates.
For more information, see Validating Records for Duplicates.

Sales Quotes Gives you the ability to create opportunity-based sales quotes, send them to customers
for review, and create sales orders and invoices based on these quotes.
For more information, see Opportunity Management: Sales Quotes.

Address Lookup In- Gives you the ability to use the address enrichment functionality. With this feature en-
tegration abled, integration with a web map service can be set up, and you can add new addresses,
update existing addresses, and fill in the missing address information on the forms that
have address information.
For more information, see Integration with Web Map Services.

Projects Group of Features

These features are available as add-on features.

Features  

Projects This group of features, if enabled on the Enable/Disable Features (CS100000) form, adds
the forms and UI elements related to the project accounting functionality, which can be
integrated with other functional areas of the system.
For more information, see Projects.

Project Accounting Adds the forms and UI elements related to the project accounting functionality, which
can be integrated with the other functional areas.
For more information, see Project Accounting in Acumatica ERP.

Change Orders Gives you the ability to control changes to the project's budgeted and committed values,
and to control the profitability of every change initiated by a customer.
For more information, see Single-Tier Change Management: General Information.
 Preparing an Instance for Implementation | 38

Features  

Change Requests Gives you the ability to set up two-tier change management for change orders. In the first
tier, you create change requests, and in the second tier, you group multiple change re-
quests into a single change order.
This feature can be enabled only if the Change Orders feature is enabled.
For more information, see Change Requests: General Information.

Budget Forecast Gives you the ability to prepare a budget forecast for long-term projects, which allows
you to break down the structure of the project budget by financial periods.
For more information, see Project Budget Forecasts: General Information.

Cost Codes Gives you the functionality of cost codes, which represent an additional classification lev-
el for project revenues and costs in project budgets.
For more information, see Cost Codes: General Information.

Project Quotes Allows you to create project quotes and convert the winning quote to a project when you
reach an agreement with the customer on the terms of this project quote.
For more information, see Project Quotes: General Information.

Multicurrency Allows tracking of projects in the project currency, which can differ from the base curren-
Projects cy.
This feature can be enabled only if the Multicurrency Accounting feature is enabled.
If you clear this check box to disable the feature, the system will clear the Multiple Base
Currencies check box.
For more information, see Managing Multicurrency Projects.

Project-Specific In- Provides enhanced tracking of the quantities and costs of items that are purchased or
ventory sold for projects.
This feature can be enabled only if the Inventory feature (under Inventory and Order
Management) is enabled.

Construction Gives you construction-specific functionality, such as billing of projects with retainage,
AIA reporting, joint payments, subcontracts, compliance tracking, and support for multi-
ple bids on opportunities.
For more information, see the Construction Edition guide.

Construction Provides construction-specific project management functionality. With this feature en-
Project Manage- abled, you can create and process daily field reports, project issues, photo logs, drawing
ment logs, and submittals for your projects.
For more information, see the Construction Edition guide.
 Preparing an Instance for Implementation | 39

Customer Portal Group of Features

Feature Overview

Customer Portal The Acumatica Self-Service Portal, which is available if this group of features is enabled
on the Enable/Disable Features (CS100000) form, provides a solution for you to more effi-
ciently work and communicate with your customers. Self-Service Portal is specifically de-
signed to be the site where your customers can view all the relevant information about
their interactions with you as a vendor and perform needed activities.
Self-Service Portal is an additional application that can be installed separately. For more
information, see Overview of the Acumatica Self-Service Portal.

B2B Ordering Makes it possible for your customers to view the online catalog and place orders them-
selves through Self-Service Portal.
For more information, see Managing the Inventory Catalog in the Self-Service Portal.

Case Management Gives your customers the ability to add cases and track case processing through Self-Ser-
on Portal vice Portal.
This feature can be enabled only if the Case Management feature is enabled.
For more information, see Configuring Case Management in the Self-Service Portal.

Financials on Por- Provides a means for your customers to view the documents associated with their com-
tal pany accounts in Acumatica ERP.

Service Management Group of Features

Feature Overview

Service Manage- This group of features, which you can enable on the Enable/Disable Features (CS100000)
ment form, includes the features associated with the service management functionality. You
can enable or disable features related to the service management if this group is included
in your license.

Equipment Man- This feature makes available the forms and UI elements related to the equipment man-
agement agement functionality. You can enable this feature if it is included in your license.

Route Manage- This feature makes available the forms and UI elements related to the route management
ment functionality. You can enable this feature if it is included in your license.

Payroll Functionality

Feature Overview

Payroll Adds the forms and UI elements related to the payroll functionality, which can be inte-
grated with the other functionality of the system, if this feature is enabled on the En-
able/Disable Features (CS100000) form.
 Preparing an Instance for Implementation | 40

Platform Group of Features

Feature Overview

Platform The features of this group provide various functionality that cover monitoring and
automating user activities, as well as options for secure authentication.

Monitoring and Automa- If the features in this group are enabled on the Enable/Disable Features (CS100000)
tion form, user activities and the automation of workflows can be monitored. This
group of features is not available in the standard edition of Acumatica ERP.

Approval Workflow Provides the ability to configure and use approval maps for the automatic assign-
ment of various documents and GL transactions to particular employees for ap-
proval. If this feature is not enabled, approval maps cannot be used in the system,
but the approval of expense claims still can be configured and performed by using
a different method. For details, see Approving Documents, Expense Claim Approval,
and Processing Transactions with Approvals.

Field-Level Audit Gives your organization the ability to track user activities in the system. This fea-
ture, which is configured on the Audit (SM205510) form, provides complete informa-
tion on who did what and when on the form. For more information, see Field-Level
Auditing: General Information.

Row-Level Security Adds forms and UI elements, which provides the management and administration
of user access (through restriction groups) to particular system records and objects
to which users have access based on their roles. For details, see Restriction Groups
in Acumatica ERP.

Scheduled Processing Makes it possible for you to configure the automatic processing of documents that
require significant time and system resources. You can define a schedule for this
automatic processing—for instance, at times when there are no employees at work,
such as weekends or nights. For more information, see Automated Processing: Gen-
eral Information.

Workflow Automation Provides the ability to customize workflows by means of automation steps, and
gives you the ability to back up and store automation definitions that include all
the automation steps defined in the application. For more information, see Automa-
tion Maintenance.

DeviceHub Provides the ability to connect hardware devices, such as printers, scanners and
digital scales, by using the DeviceHub application. For instructions on configuring
printers by using DeviceHub, see Configuring Hardware Devices in DeviceHub.

GDPR Compliance Tools Gives you the ability to protect personal data and restrict its processing by using
compliance tools for General Data Protection Regulation (GDPR). For more infor-
mation about GDPR compliance tools, see Compliance Tools for General Data Pro-
tection Regulation.

Secure Business Date Restricts the ability to change the business date, so that this task cannot be per-
formed by all users in the system. To permit the change of the business date for
specific users, you assign the BusinessDateOverride role to these users. For more in-
formation about restricting the ability to change the date, see User Roles: Restric-
tions on Changing the Business Date.
 Preparing an Instance for Implementation | 41

Feature Overview

Image Recognition for Makes available the recognition of expense receipts in the Acumatica mobile app.
Expense Receipts
The feature is not available in trial mode and can be enabled only if
it is included in the license that is applied to the Acumatica ERP in-
stance.

Image Recognition for Makes available the recognition of business cards in the Acumatica mobile app.
Business Cards
The feature is not available in trial mode and can be enabled only if
it is included in the license that is applied to the Acumatica ERP in-
stance.

AP Document Recogni- Allows you to configure the system to automatically recognize invoices attached to
tion Service incoming emails so that users can create AP bills from those recognized documents
with a single click.
With this feature enabled, the Incoming Documents (AP3011PL) and Incoming Doc-
uments (AP301100) forms can be used. Also, the following elements become avail-
able in the system:
• The Submit to Incoming Documents check box on the Incoming Mail Process-
ing tab of the System Email Accounts (SM204002) form
• The Create AP Document button in the Acumatica add-in for Outlook, which is
available only for emails with PDF attachments

The feature is not available in trial mode and can be enabled only if
it is included in the license that is applied to the Acumatica ERP in-
stance.

For more information, see Recognizing AP Documents From PDFs.

Authentication The features in the Authentication group of features are available for all the editions
by default.

Two-Factor Authentica- Provides the ability to configure two-factor authentication, so that access to the
tion system is granted only after the user successfully presents to the system additional
evidence of authentication in addition to the user credentials (that is, the username
and password). For details, see Managing Two-Factor Authentication.

Google and Microsoft Gives you the ability to integrate Acumatica ERP with Google or Microsoft Account
SSO by using the OAuth 2.0 standard for providing single sign-on (SSO). This reduces the
number of usernames and passwords the users have to remember, thus reducing
the risk of identity the.

Active Directory and Gives you the ability to integrate Acumatica ERP with Microsoft Active Directory
Other External SSO (AD), Microsoft Active Directory Federation Services (AD FS), or Microsoft Azure Ac-
tive Directory (Azure AD).

OpenID Connect Provides the ability to configure integration with OpenID identity providers. A sys-
tem administrator can configure integration with multiple OpenID providers for a
system tenant or multiple tenants.
 Preparing an Instance for Implementation | 42

Time Management Group of Features

Feature Overview

Time Makes it possible to track the time that employees in your organization spend on activities that
Manage- can be included in time cards. If the Payroll feature is enabled on the Enable/Disable Features
ment (CS100000) form as well, the time tracking information may be included in earning records in pay-
roll documents.
For details, see Reporting Time and Configuring Time Tracking.

Shi Dif- Gives payroll managers the ability to set up an employee's pay rate that depends on the employee
ferential work schedule. If this feature is enabled, all the UI elements and forms that allow establishing the
connection between employee pay rates and work shis are displayed in the system.
For more information, see Creating Shift Codes.

Third Party Integrations Group of Features

Feature Overview

Third Party Inte- The features in the Third Party Integrations group of features are available on the En-
grations able/Disable Features (CS100000) form for all editions of Acumatica ERP, although the
number of features is different in different editions.

SendGrid Integra- Enables the settings needed for integration with SendGrid. That is, SendGrid (the Send-
tion Grid email service plug-in) becomes available for selection in the Email Service Plug-In
box on the System Email Accounts (SM204002) form. The plug-in is used for the configura-
tion of SendGrid email accounts in Acumatica ERP
For details, see Integrating Acumatica ERP with SendGrid.

Commerce Inte- This group of features activates Acumatica ERP Retail-Commerce Edition, which supports
gration integration with external shopping carts and marketplaces for omni-channel sales and
fulfillment.

BigCommerce Con- Enables the integration with the BigCommerce automated shopping cart software. For
nector details, see Integration with BigCommerce.

Shopify Connector Enables the integration with the Shopify e-commerce platform. For details, see Integra-
tion with Shopify.

Shopify and Shopi- Enables the integration with the Shopify e-commerce platform and gives you the ability
fy POS Connector to import and process point-of-sale (POS) orders from Shopify to Acumatica ERP.
For details, see Order Synchronization: Import of POS Orders.

Bank Feed Integra- Enables the integration with Plaid and MX, which are financial service companies that
tion provide secure bank feeds. With this integration, Acumatica ERP users can automatically
import bank transactions and create expense receipts based on these transactions.
The Bank Feed Integration feature is subject to licensing. If your organization needs to
create more than one bank feed, it should buy the needed license.
For details, see Integrating Acumatica ERP with Bank Feeds.
 Preparing an Instance for Implementation | 43

Feature Overview

Integrated Card Enables the processing of credit cards on multiple forms. If this feature is enabled, all the
Processing UI elements and forms related to credit card processing are displayed in the system. For
details, see Automatic Payment Collection.

Shipping Carrier Makes it possible for you to configure integration with carriers, such as FedEx or UPS.
Integration With this integration, you can apply real-time rates to shipments and track their delivery.

Integration with any of the carriers does not support international ship-
ments.

For details, see Integration with Carriers.

FedEx Gives you the ability to use the FedEx carrier service with the PX.FedExCarrier.FedExCarri-
er plug-in

UPS Gives you the ability to use the UPS carrier service with the PX.UpsCarrier.UpsCarrier
plug-in

Stamps.com Gives you the ability to use the Stamps.com carrier service with the PX.StampsCarrier.S-
tampsCarrier plug-in

ShipEngine Gives you the ability to use the ShipEngine carrier service with the PX.ShipEngineCarri-
er.ShipEngineCarrier plug-in

EasyPost Gives you the ability to use the EasyPost carrier service with the PX.EasyPostCarrier.Easy-
PostCarrier plug-in

Custom Gives you the ability to use a custom carrier service with a custom plug-in

Exchange Integra- Gives you the ability to integrate Acumatica ERP with Microsoft Exchange Server. You will
tion be able to configure synchronization, and then synchronize users' contacts, emails, tasks,
and events in Acumatica ERP with their Exchange mailboxes.
For more information, see Synchronizing Acumatica ERP with Microsoft Exchange Server.

External Tax Calcu- Provides integration with the AvaTax service by Avalara, Vertex Tax Calculation, or anoth-
lation Integration er tax provider for the automatic calculation of sales and use taxes online.
For details, see Integrating Acumatica ERP with External Tax Providers.

Address Validation Provides validation of customer addresses through integrated specialized services, such
Integration as AvaTax by Avalara. The feature can be used with the External Tax Calculation Integra-
tion feature or without it. For details, see Integrating Acumatica ERP with Address Valida-
tion Providers.

Salesforce Integra- Supports bi-directional real-time synchronization of data between Acumatica ERP and
tion Salesforce, so users can work simultaneously in both systems with changes in one sys-
tem being reflected in the other. For details, see Setting Up Synchronization with Sales-
force.

HubSpot Integra- Gives users the ability to transfer marketing data into Acumatica ERP from HubSpot and
tion to transfer relevant data back to HubSpot from Acumatica ERP. For details, see Integration
with HubSpot.
 Preparing an Instance for Implementation | 44

Feature Overview

Procore Integra- Adds the forms and UI elements related to the Procore Integration solution, which is dis-
tion tributed as a separate customization package. Once the package is installed and the fea-
ture is included in the license that is applied to an Acumatica ERP instance, the function-
ality becomes available in the system.

Outlook Integra- Gives you the ability to use the Acumatica add-in for Outlook. With this feature enabled,
tion you can create and view contacts, log an activity from an email, and attach an activity to
a contact.
Enabling both this feature and the Customer Management feature gives you the ability to
do the following:
• Create and view a lead, and attach the logged activity to the lead
• Create and view an opportunity, and attach the logged activity to the opportunity
Enabling both this feature and the Case Management feature gives you the ability to cre-
ate and view a case and attach the logged activity to the case.
Enabling both this feature and the Document Recognition Service feature gives you the
ability to do the following:
• Submit email attachments to the recognition service
• View documents processed by the recognition service
Enabling both this feature and the Projects feature gives you the ability to attach the
logged activity to a project.
Enabling both this feature and the Construction Project Management feature gives you
the ability to do the following:
• Create a project issue and attach the logged activity to the project issue
• Create a request for information (RFI) and attach the logged activity to the RFI
For more information, see Using the Acumatica Add-In for Outlook.

WorkWave Route Provides integration with WorkWave to give users the ability to automatically optimize
Optimization appointment schedules in field services. For details, see Appointments: Schedule Opti-
mization by WorkWave.

Manufacturing Group of Features

Feature Overview

Manufacturing This group of features activates Acumatica ERP Manufacturing Edition, which provides
the functionality related to item production.

Material Require- Makes available forms and UI elements related to the functionality of material require-
ments Planning ments planning. For details, see Material Requirements Planning: General Information.

Product Configura- Makes available forms and UI elements related to the functionality of product configura-
tor tor. For more information, see Product Configurator: General Information.

Estimating Makes available forms and UI elements related to the functionality of estimations. For de-
tails, see Estimating: General Information.
 Preparing an Instance for Implementation | 45

Feature Overview

Advanced Planning Makes available forms and UI elements related to advanced planning and scheduling. For
and Scheduling more information, see Advanced Planning and Scheduling: General Information.

Engineering Makes available forms and UI elements related to the functionality of engineering change
Change Control control. For details, see Engineering Change Control: General Information.

Manufacturing Da- Provides the ability to perform production operations by using barcode scanners or mo-
ta Collection bile devices. For more information, see Manufacturing Data Collection.

Canadian Localization Functionality

Feature Overview

Canadian Localiza- Enables functionality that is specific to Canadian market: EFT export, generation of T5018
tion slips, extended tax registration numbers, tax printing labels, and modified cash discount
calculation. For details, see Filing the T5018 Form.

UK Localization Functionality

Feature Overview

UK Localization Enables the types of functionality that are specific to the United Kingdom market:
• Support for the Bankers Automated Clearing Service (BACS). For details, see Process-
ing BACS Payments.
• Support for Making Tax Digital (MTD). For details, see Configuring Support for Making
Tax Digital (MTD).

Experimental Features

Feature Overview

Experimental Fea- The features in this group are experimental, meaning that they may be discontinued in
tures the future or may be substantially changed, requiring the company to reimplement them
if they are implemented during the experimental period.

Import of SendGrid Provides users with the ability to import designs that were created through the use of
Designs SendGrid for an email template. The feature is available if the SendGrid Integration fea-
ture is enabled.
With the feature enabled, the system adds the Import SendGrid Design button to the
toolbar of the Email Templates (SM204003) form. For details, see Mail Processing using
SendGrid.
 Preparing an Instance for Implementation | 46

Feature Overview

GL Anomaly Detec- Provides the recognition of potential errors in posted GL transactions. With the feature
tion enabled, the system uses a machine learning algorithm to calculate predictions of errors
in GL transactions. The algorithm uses a machine learning model—a file trained to recog-
nize certain patterns. The model is operated by a cloud service and is based on reclassi-
fied GL transactions in closed periods.

This feature is currently in Managed Availability and some scenarios may

not be supported yet. We recommend testing the feature before you enable
it on a production instance.

For more details, see GL Anomaly Detection: General Information.

 Preparing a Company for Implementation | 47

Preparing a Company for Implementation

This chapter describes the configuration of a company in a new Acumatica ERP instance.

Company Without Branches

This chapter describes the configuration of a company that has just one office, including the minimum set of
features that has to be enabled for this configuration. The chapter also contains an implementation checklist
that users can refer to when they are preparing for implementation and configuring the basic Acumatica ERP
functionality for the company.

Company Without Branches: General Information

When you initially implement Acumatica ERP, you perform the company configuration that makes it possible for
system implementation to proceed. This configuration includes enabling the default set of features and configuring
the company in the system. You can proceed to further Acumatica ERP implementation, which includes specifying
the basic settings related to the general ledger and to cash management, accounts payable, and accounts
receivable.
When you configure a company in Acumatica ERP, it can be defined as being without branches, as consisting of
branches that require balancing entries (if transactions involve multiple branches), or as having branches that do
not require balancing entries. The topics of this chapter describe the configuration of a company without branches.

Learning Objectives
In this chapter, you will learn how to do the following:
• Enable the default set of features before you start the configuration of a company
• Perform the configuration of a company without branches

Applicable Scenarios
You configure a company without branches if the company has only one business location. You perform this
company configuration as a first phase of the implementation of Acumatica ERP, before the entities needed for
business processes are created. You can also add a new company without branches to the existing companies in an
existing tenant at any time.

Workflow of the Configuration of a Company Without Branches

To implement the basic configuration of a company without branches in Acumatica ERP, you perform the following
general steps:
1. On the Enable/Disable Features (CS100000) form, you enable the default set of features. For details, see
Company Without Branches: To Configure a Company Without Branches.

In a production environment, aer the features are enabled, you have to activate the
Acumatica ERP license by using the Activate License (SM201510) form. Each particular feature
may be subject to additional licensing; please consult the Acumatica ERP sales policy for
details.
 Preparing a Company for Implementation | 48

2. On the Companies (CS101500) form, you create the company entity in the system; you also create its actual
ledger. For details, see Company Without Branches: To Configure a Company Without Branches and General
Ledger: To Create an Actual Ledger.
3. On the Chart of Accounts (GL202500) form, you add the accounts that are necessary for performing the
financial operations of the company, as described in General Ledger: To Create a Chart of Accounts.
4. On the General Ledger Preferences (GL102000) form, you specify the settings for processing transactions in
the general ledger. For details, see General Ledger: To Specify General Ledger Preferences.
5. On the Financial Year (GL101000) form, you set up the first financial year when the company starts
processing its operations in Acumatica ERP. You then generate periods on the Master Financial Calendar
(GL201000) form and open them on the Manage Financial Periods (GL503000) form. For more information,
see General Ledger: To Define a Financial Year.
6. On the Cash Management Preferences (CA102000) form, you specify the settings to be used in the system for
processing cash transactions. For details, see Cash Management: To Specify Cash Management Preferences.
7. On the Entry Types (CA203000) form, you add the necessary entry types for processing cash payments. For
details, see Cash Management: To Create an Entry Type.
8. On the Cash Accounts (CA202000) form, you define the cash accounts to be used to record cash entries and
funds transfers. For more information, see Cash Management: To Create Cash Accounts.
9. On the Payment Methods (CA204000) form, you define the payment methods that the company uses to pay
its vendors, as well as the payment methods that are used by customers to pay the company. For more
information, see Cash Management: To Modify a Payment Method.
10.On the Credit Terms (CS206500) form, you create the sets of credit terms that are commonly used by vendors
in their relations with the company and by the company in its relations with customers. These will be
assigned to particular vendors and customers and specified in their bills and invoices, respectively. For
more information, see Credit Terms: To Define Credit Terms.
11.On the Vendor Classes (AP201000) form, you create the default vendor class, which will provide default
values for vendor accounts of the class and for other vendor classes you create later. For details, see
Accounts Payable: To Create a Vendor Class.
12.On the Accounts Payable Preferences (AP101000) form, you specify the settings to be used in accounts
payable. See Accounts Payable: To Specify Accounts Payable Preferences for more information.
13.On the Statement Cycles (AR202800) form, you define the necessary statement cycles to track customers'
outstanding balances, as described in Accounts Receivable: To Create a Statement Cycle. These cycles will be
used later, when you are sending electronic or printed statements to the customers.
14.On the Customer Classes (AR201000) form, you create the default customer class, which will provide default
values for customer accounts and for other customer classes you create later. For details, see Accounts
Receivable: To Create a Customer Class.
15.On the Accounts Receivable Preferences (AR101000) form, you specify the settings to be used in accounts
receivable. See Accounts Receivable: To Specify Accounts Receivable Preferences for more information.

Company Settings
In Acumatica ERP, you can create new companies or maintain existing companies by using the Companies
(CS101500) form. A company may have no branches, or it may consist of multiple branches, with each being a
separate office or point of sale.
To configure the company without branches, you have to specify the company's identifier, name, address, units
of measure, and ensure that the Without Branches type is selected on the Companies form. You have to specify the
company's identifier, name, address, and units of measure. You also specify the base currency of the company,
which you cannot change aer you save the newly created company for the first time and save the GL preferences
on the General Ledger Preferences (GL102000) form. If you create multiple companies in the tenant, this base
currency will be used automatically for all companies and cannot be changed.
 Preparing a Company for Implementation | 49

You can implement multiple base currencies in one tenant if the Multiple Base Currencies feature is
enabled on the Enable/Disable Features (CS100000) form. For details, see Multiple Base Currencies:
General Information. This functionality is out of scope for the current chapter.

Aer the company has been configured, the Without Branches company type can still be changed to With Branches
Not Requiring Balancing and With Branches Requiring Balancing at any time if the Multibranch Support feature is
selected on the Enable/Disable Features form.

Company Without Branches: Implementation Checklist

You can use the tables in this topic to quickly check whether the basic company configuration steps are being
performed in Acumatica ERP. The following tables cover both mandatory configuration steps and recommended
configuration steps.

Table: Mandatory Configuration

To ensure that the basic configuration of a company has been implemented properly, make sure that the necessary
features have been enabled and the needed entities have been created, as listed in the following table.

Form Criteria to Check

Enable/Disable Features (CS100000) form Make sure that the Standard Financials group of fea-
tures has been enabled.

Companies (CS101500) form Make sure that the necessary company has been creat-
ed and that the necessary ledger has been created and
assigned to it.

Chart of Accounts (GL202500) form Make sure that the necessary accounts for performing
financial operations have been added.

General Ledger Preferences (GL102000) form Make sure that all necessary settings to use the gener-
al ledger functionality have been specified, including
the YTD Net Income and Retained Earnings accounts.

Financial Year (GL101000) form Make sure that the first financial year in which the
company will operate has been added and the periods
have been generated.

Company Financial Calendar (GL201100) form Make sure that the periods in which the company will
operate are open.

Cash Management Preferences (CA102000) form Make sure that all necessary settings to use the cash
management functionality have been specified, in-
cluding the Cash-in-Transit account.

Cash Accounts (CA202000) form Make sure that the necessary cash accounts to record
cash entries and funds transfers have been created,
and that the necessary entry types have been assigned
to them.

Payment Methods (CA204000) form Make sure that the payment methods to be used have
been created and defined to use the proper accounts.
 Preparing a Company for Implementation | 50

Form Criteria to Check

Entry Types (CA203000) form Make sure that the necessary entry types for process-
ing cash payments have been created and assigned to
the related cash accounts.

Credit Terms (CS206500) form Make sure that the needed credit terms—those that
are commonly used by vendors in their relations with
your company, and those that are used by your com-
pany in its relations with customers—have been creat-
ed.

Vendor Classes (AP201000) form Make sure that the default vendor class, which pro-
vides the default values for vendor accounts and for
other vendor classes, has been created.

Accounts Payable Preferences (AP101000) form Make sure that all necessary settings to use the ac-
counts payable functionality have been specified.

Statement Cycles (AR202800) form Make sure that the necessary statement cycles, which
will later be used to track customers' outstanding bal-
ances and send electronic or printed statements to the
customers, have been created.

Customer Classes (AR201000) form Make sure that the default customer class, which pro-
vides the default values for customer accounts and for
other customer classes, has been created.

Accounts Receivable Preferences (AR101000) form Make sure that all necessary settings to use the ac-
counts receivable functionality have been specified.

Table: Recommended Configuration

The settings listed in the following table can be specified to simplify the process of creating entities in the system.

Form Criteria to Check

General Ledger Preferences (GL102000) form Make sure that the following settings have been speci-
fied:
• The Automatically Post on Release check box is
selected.
• The Hold Batches on Entry check box is cleared.

Cash Management Preferences (CA102000) form Make sure that the following settings have been speci-
fied:
• The Automatically Post to GL on Release check
box is selected.
• The Hold Transactions on Entry check box is
cleared.
• The Require Document Ref. Nbr. on Entry check
box is cleared.
 Preparing a Company for Implementation | 51

Form Criteria to Check

Accounts Payable Preferences (AP101000) form Make sure that the following settings have been speci-
fied:
• The Automatically Post on Release check box is
selected.
• A vendor class, which will be used to provide de-
fault values for vendor accounts, is selected in the
Default Vendor Class ID box.
• The Hold Documents on Entry check box is
cleared.
• The Require Approval of Bills Prior to Payment
check box is cleared.
• The Validate Document Totals on Entry check box
is cleared.
• The Require Vendor Reference check box is
cleared.

Accounts Receivable Preferences (AR101000) form Make sure that the following settings have been speci-
fied:
• The Automatically Post on Release check box is
selected.
• A customer class, which will be used to provide de-
fault values for customer accounts, has been se-
lected in the Default Customer Class ID box.
• The Hold Documents on Entry check box is
cleared.
• The Validate Document Totals on Entry check box
is cleared.
• The Require Payment Reference on Entry check
box is cleared.

Company Without Branches: To Configure a Company Without Branches

In this activity, you will learn how to enable the minimum set of features and define settings for a company without
branches.

Story
Suppose that as an administrator, you are going to start configuring a new company without branches in Acumatica
ERP. The company is going to use the default features. You need to enable these features and then you need to
configure a company entity in Acumatica ERP for the SweetLife Fruits & Jams company, which at this time has only
one office in New York.

Process Overview
In this activity, you will enable the minimum set of features on the Enable/Disable Features (CS100000) form. On the
Companies (CS101500) form, you will create a company without branches and specify its settings. Finally, on the
Currencies (CM202000) form, you will review the settings of the new company's base currency.
 Preparing a Company for Implementation | 52

System Preparation
Before you start configuring a company without branches, sign in to a tenant with the out-of-the-box company as a
system administrator with the admin username.

Step 1: Enabling the Minimum Set of Features

To enable the minimum set of features, do the following:
1. Open the Enable/Disable Features (CS100000) form.
2. On the form toolbar, click Enable to enable the default set of features, which are those for which the
corresponding check boxes have been selected on the form. This set of features consists of Finance,
Standard Financials, Centralized Period Management, Platform, Monitoring & Automation, Scheduled
Processing, Workflow Automation, Authentication, Third Party Integrations, and Experimental Features.

In a production environment, aer the features are enabled and before you proceed with implementation, you
have to activate the Acumatica ERP license by using the Activate License (SM201510) form. In this activity, you are
using Acumatica ERP under the trial license, which does not require activation and provides all available features.

Step 2: Defining a Company Without Branches

To configure the company without branches for SweetLife, do the following:
1. Open the Companies (CS101500) form.

To open the form for creating a new record, type the form ID in the Search box, and on the
Search form, point at the form title and click New right of the title.

2. In the Summary area, specify the following settings:

• Company ID: SWEETLIFE
• Company Name: SweetLife Fruits & Jams
In the Company Type box, notice that Without Branches is selected; you will leave this default setting.
3. In the Main Address section of the Company Details tab, specify the following address settings:
• City: New York
• Country: US - United States of America
• State: NY - New York
4. In the Base Currency Settings (Shared) section, specify USD - US Dollar in the Base Currency ID box.

The base currency you select for the first company in the tenant will be applied to all
companies in the tenant. Aer you specify the base currency and save your changes, the base
currency can be overridden until GL preferences are saved on the General Ledger Preferences
(GL102000) form. Aer the GL preferences have been saved, the base currency cannot be
overridden.

5. In the Miscellaneous Settings (Shared) section, enter 2 in the Price/Cost Decimal Places box.

If you later add additional companies to the tenant, the settings you specify in this area for the
first company in the tenant will be applied to all companies in the tenant.

6. On the form toolbar, click Save to save your changes.

 Preparing a Company for Implementation | 53

On the same form, you can now create an actual ledger for the company you have created. For details, see General
Ledger: To Create an Actual Ledger.

Step 3: Reviewing the Base Currency Settings

To review the settings of the company's base currency, which you specified in Step 2, do the following:
1. Open the Currencies (CM202000) form.
2. In the Currency ID box, select USD.
3. In the Summary area, review the values in the Description, Currency Symbol, and Decimal Precision
boxes for the base currency you selected for the company in Step 2.
Notice that the Active check box is selected automatically and is unavailable for editing, indicating this is
the base currency.

Activity Recap
In this activity, we have illustrated the following:
1. The system administrator has enabled the minimum set of features.
2. The system administrator has created a company without branches and entered its main address, the base
currency, and the decimal precision to be used for prices and costs.
3. The system administrator has reviewed the settings of the base currency that was selected for the new
company.

Company with Branches that Do Not Require Balancing

This chapter describes the configuration of a company that has multiple branches in which reports are prepared
for the whole company. This configuration includes the minimum set of features that has to be enabled for this
configuration. The chapter also contains an implementation checklist that users can refer to when they are
preparing for implementation and configuring the basic Acumatica ERP functionality for the company.

Company with Branches that Do Not Require Balancing: General Information

When you initially implement Acumatica ERP, you perform the company configuration that makes it possible
for system implementation to proceed. This configuration includes enabling the necessary set of features and
configuring the company in the system. You can then proceed to further Acumatica ERP implementation, which
includes specifying the basic settings related to the general ledger and to cash management, accounts payable, and
accounts receivable.
When you configure a company in Acumatica ERP, it can be defined as being without branches, as consisting of
branches that require balancing entries (if transactions involve multiple branches), or as having branches that do
not require balancing entries. The topics of this chapter describe the configuration of a company with branches
that do not require balancing.

Learning Objectives
In this chapter, you will learn how to perform configuration of a company with branches that do not require
balancing.
 Preparing a Company for Implementation | 54

Applicable Scenarios
You configure a company with branches that do not require balancing if the company has multiple offices, but
balance sheets are provided for the whole company (not separately for each branch).
You perform company configuration as a first phase of the implementation of Acumatica ERP, before the creation
of the entities needed for business processes. You can also add a new company or a new branch to the existing
companies in the tenant at any time.

Company Settings
In Acumatica ERP, you create new companies or maintain existing companies by using the Companies (CS101500)
form. On this form, to configure the company with branches that do not require balancing, you have to specify the
company's identifier, name, and address, and you ensure that the With Branches Not Requiring Balancing type is
selected. You also specify the base currency of the company, which you cannot change aer you save the newly
created company for the first time. If you create multiple companies in the tenant, this base currency will be used
automatically for all companies and cannot be changed if the Multiple Base Currencies feature is disabled on the
Enable/Disable Features (CS100000) form. (If the company is not the first company you are creating in the tenant,
the base currency is already filled in.)
Aer you have created the company, you add branches to it on the Branches (CS102000) form. You can navigate
directly to this form or open it by clicking Add Branch on the Companies form. On the Branches form, for each
branch you want to add, you specify its general information, including its identifier, name, address, default
location, and employees.

Aer the company has been configured, the With Branches Not Requiring Balancing company type can
still be changed to Without Branches if the company has only one branch or no branches at all. The
type can also be changed to With Branches Requiring Balancing if no transactions have been posted
by company branches or the company has only one branch.

Company with Branches that Do Not Require Balancing: Implementation Checklist

You can use the tables in this topic to quickly check whether the configuration steps for a company with branches
that do not require balancing are being performed in Acumatica ERP. The following tables cover both the
mandatory configuration steps and the recommended configuration steps.

Table: Mandatory Configuration

To ensure that the basic configuration of a company has been implemented properly, make sure that the necessary
features have been enabled and the needed entities have been created, as listed in the following table.

Form Things to Check Notes

Enable/Disable Features (CS100000) Make sure that the Standard Fi-  

form nancials group of features and the
Multibranch Support and Multicom-
pany Support features have been
enabled.
 Preparing a Company for Implementation | 55

Form Things to Check Notes

Companies (CS101500) form Make sure that the necessary com-  

pany has been created with the
With Branches Not Requiring Bal-
ancing type and that the necessary
ledger has been created and as-
signed to it.

Branches (CS102000) form Make sure that the branches of the  

company have been created.

Chart of Accounts (GL202500) form Make sure that the necessary ac-  
counts for performing financial op-
erations have been added.

General Ledger Preferences Make sure that all necessary set-  

(GL102000) form tings to use the general ledger
functionality have been specified,
including the YTD Net Income and
Retained Earnings accounts.

Financial Year (GL101000) form Make sure that the first financial  
year in which the company will op-
erate has been added and the peri-
ods have been generated.

Company Financial Calendar Make sure that the periods in which  

(GL201100) form the company will operate are open.

Cash Management Preferences Make sure that all necessary set-  

(CA102000) form tings to use the cash management
functionality have been specified,
including the Cash-in-Transit ac-
count.

Cash Accounts (CA202000) form Make sure that the necessary cash  
accounts to record cash entries and
funds transfers have been created,
and that the necessary entry types
have been assigned to them.

Payment Methods (CA204000) form Make sure that the payment meth-  
ods to be used have been created
and have been defined to use the
proper accounts.

Entry Types (CA203000) form Make sure that the necessary entry  
types for processing cash payments
have been created and assigned to
the related cash accounts.
 Preparing a Company for Implementation | 56

Form Things to Check Notes

Credit Terms (CS206500) form Make sure that the needed credit  
terms—those that are commonly
used by vendors in their relations
with your company, and those that
are used by your company in its re-
lations with customers—have been
created.

Vendor Classes (AP201000) form Make sure that the default vendor  
class, which provides the default
values for vendor accounts and for
other vendor classes, has been cre-
ated.

Accounts Payable Preferences Make sure that all necessary set-  

(AP101000) form tings to use the accounts payable
functionality have been specified.

Statement Cycles (AR202800) form Make sure that the necessary state-  
ment cycles, which will later be
used to track customers' outstand-
ing balances and send electronic
or printed statements to the cus-
tomers, have been created.

Customer Classes (AR201000) form Make sure that the default cus-  
tomer class, which provides the de-
fault values for customer accounts
and for other customer classes, has
been created.

Accounts Receivable Preferences Make sure that all necessary set-  

(AR101000) form tings to use the accounts receiv-
able functionality have been speci-
fied.

Table: Recommended Configuration

The settings listed in the following table can be specified to simplify the process of creating entities in the system.

Form Things to Check Notes

General Ledger Preferences Make sure that the following set-  

(GL102000) form tings have been specified:
• The Automatically Post on Re-
lease check box is selected.
• The Hold Batches on Entry
check box is cleared.
 Preparing a Company for Implementation | 57

Form Things to Check Notes

Cash Management Preferences Make sure that the following set-  

(CA102000) form tings have been specified:
• The Automatically Post to GL
on Release check box is select-
ed.
• The Hold Transactions on En-
try check box is cleared.
• The Require Document Ref.
Nbr. on Entry check box is
cleared.

Accounts Payable Preferences Make sure that the following set-  

(AP101000) form tings have been specified:
• The Automatically Post on Re-
lease check box is selected.
• A vendor class, which will be
used to provide default values
for vendor accounts (and for
other vendor classes), is select-
ed in the Default Vendor Class
ID box.
• The Hold Documents on Entry
check box is cleared.
• The Require Approval of Bills
Prior to Payment check box is
cleared.
• The Validate Document Totals
on Entry check box is cleared.
• The Require Vendor Reference
check box is cleared.

Accounts Receivable Preferences Make sure that the following set-  

(AR101000) form tings have been specified:
• The Automatically Post on Re-
lease check box is selected.
• A customer class, which will be
used to provide default values
for customer accounts (and for
other customer classes), has
been selected in the Default
Customer Class ID box.
• The Hold Documents on Entry
check box is cleared.
• The Validate Document Totals
on Entry check box is cleared.
• The Require Payment Ref-
erence on Entry check box is
cleared.
 Preparing a Company for Implementation | 58

Company with Branches that Do Not Require Balancing: Implementation Activity

In this activity, you will learn how to enable the necessary set of features, define settings for a company with
branches that do not require balancing, and define settings for the branches of the company.

Story
Suppose that as an administrator, you are going to start configuring the SweetLife company with the following
branches, which do not require balancing:
• SweetLife Office and Wholesale Center
• SweetLife Store
• Service and Equipment Sale Center
The company is going to use the default features and the Multibranch Support feature; you need to enable these
features. You then need to configure a company entity in Acumatica ERP for the SweetLife Fruits & Jams company
with these three offices in New York.

System Preparation
Before you start configuring a company with branches that do not require balancing, sign in to a tenant with the
out-of-the-box company as a system administrator with the admin login.

Step 1: Enabling the Minimum Set of Features

To enable the minimum set of features, do the following:
1. Open the Enable/Disable Features (CS100000) form.
Notice that the check boxes are initially selected for the standard features. These features include Finance,
Standard Financials, Centralized Period Management, Monitoring & Automation, Scheduled Processing,
Workflow Automation, Authentication, and Third-Party Integrations.
2. Select the Multibranch Support check box.
It is now possible to create multiple companies without batches, a company with multiple branches, or
multiple companies with or without branches within one tenant.
3. On the form toolbar, click Enable to enable the selected set of features.

In a production environment, aer the features are enabled and before you proceed with implementation, you
have to activate the Acumatica ERP license by using the Activate License (SM201510) form. In this practice activity,
you are using Acumatica ERP under the trial license, which doesn't require activation and provides all available
features.

Step 2: Defining a Company with Branches that Do Not Require Balancing

To configure the company with branches that do not require balancing for SweetLife, do the following:
1. Open the Companies (CS101500) form.
2. In the Summary area, specify the following settings:
• Company ID: SWEETLIFE
• Company Name: SweetLife Fruits & Jams
• Company Type: With Branches Not Requiring Balancing
 Preparing a Company for Implementation | 59

3. In the Main Address section of the Company Details tab, specify the following address settings:
• City: New York
• Country: US - United States of America
• State: NY - New York
4. In the Base Currency Settings (Shared) section, specify USD in the Base Currency ID box.

The base currency you select in this box for the first company in the tenant will be applied
to all companies in the tenant. Aer you specify the base currency and save your changes,
the base currency can be overridden until GL preferences are saved on the General Ledger
Preferences (GL102000) form. Once the GL preferences are saved, the base currency cannot be
overridden.

5. In the Miscellaneous Settings (Shared) section, enter 2 in the Price/Cost Decimal Places box.

If you later add additional companies to the tenant, the settings you specify in this area for the
first company in the tenant will be applied to all companies in the tenant.

6. On the form toolbar, click Save.

Step 3: Defining the Company’s Branches

To define SweetLife’s branches, do the following:
1. While you are still viewing the SweetLife company on the Companies (CS101500) form, on the Branches tab,
click Add Branch.
The Branches (CS102000) form opens with the predefined company. First, you will create a branch for the
SweetLife head office and wholesale center.
2. In the Summary area, specify the following settings:
• Branch ID: HEADOFFICE
• Branch Name: SweetLife Head Office and Wholesale Center
• Company: SWEETLIFE
3. In the Main Address section of the Branch Details tab, specify the following address settings:
• Address Line 1: 69 Main St, Flushing
• City: New York
• Country: US (United States of America) (inserted by default)
• State: NY - New York
4. On the form toolbar, click Save.
5. On the form toolbar, click Add New Record, and in the Summary area, specify the following settings to
create a branch for the SweetLife retail store:
• Branch ID: SWEETSTORE
• Branch Name: SweetLife Store
• Company: SWEETLIFE
• Address Line 1: 4899 Bell Street, Staten Island
• City: New York
• Country: US (United States of America) (inserted by default)
• State: NY - New York
6. On the form toolbar, click Save.
 Preparing a Company for Implementation | 60

7. On the form toolbar of the Branches form, click Add New Record, and in the Summary area, specify the
following settings to create a branch for the service and equipment sales center:
• Branch ID: SWEETEQUIP
• Branch Name: Service and Equipment Sales Center
• Company: SWEETLIFE
• Address Line 1: 218 Oakwood Ave
• City: New York
• Country: US (United States of America) (inserted by default)
• State: NY - New York
8. On the form toolbar, click Save and close the Branches form.

The system returns you to the Companies form, on which you can now create an actual ledger for the company and
branches you have created. For details, see General Ledger: To Create an Actual Ledger.

Step 4: Reviewing the Base Currency Settings

To review the settings of the company's base currency that you selected in Step 3, do the following:
1. Open the Currencies (CM202000) form.
2. In the Currency ID box, select USD.
3. In the Summary area, review the values in the Description, Currency Symbol, and Decimal Precision
boxes for the base currency you selected for the company in Step 3.
Notice that the Active check box is selected automatically and is unavailable for editing. This setting means
that this is the base currency.

Company with Branches that Require Balancing

This chapter describes the configuration of a company that has multiple branches in which reports are prepared
separately for each branch. This configuration includes the minimum set of features that has to be enabled for
this configuration. The chapter also contains an implementation checklist that users can refer to when they are
preparing for implementation and configuring the basic Acumatica ERP functionality for the company.

Company with Branches that Require Balancing: General Information

When you initially implement Acumatica ERP, you perform the company configuration that makes it possible
for system implementation to proceed. This configuration includes enabling the necessary set of features and
configuring the company in the system. You can then proceed to further Acumatica ERP implementation, which
includes specifying the basic settings related to the general ledger and to cash management, accounts payable, and
accounts receivable.
When you configure a company in Acumatica ERP, it can be defined as being without branches, as consisting of
branches that require balancing entries (if transactions involve multiple branches), or as having branches that do
not require balancing entries. The topics of this chapter describe the configuration of a company with branches
that require balancing.

Learning Objectives
In this chapter, you will learn how to perform configuration of a company with branches that require balancing.
 Preparing a Company for Implementation | 61

Applicable Scenarios
You configure a company with branches that require balancing if the company has multiple offices, but reports are
provided separately for each branch. The offices all use the same base currency, ledger, units of measure, chart of
accounts, and financial year structure.
You perform company configuration as a first phase of the implementation of Acumatica ERP, before the creation
of the entities needed for business processes. You can also add a new company or a new branch to the existing
companies in the tenant at any time.

Workflow of the Configuration of a Company With Branches that Require Balancing

To implement the basic configuration of a company with branches requiring balancing in Acumatica ERP, you
perform the following general steps:
1. On the Enable/Disable Features (CS100000) form, you enable the default set of features and the Multibranch
Support, Multicompany Support, and Inter-Branch Transactions features. For details, see Company with
Branches that Require Balancing: Implementation Activity.
With the Multicompany Support feature enabled, users can create multiple companies within a tenant; with
the Multibranch Support feature enabled, users can create companies with multiple branches.
The Inter-Branch Transactions feature gives the users the ability to configure the automatic generation
of interbranch balancing transactions for each transaction that involves any of the following: multiple
companies, branches of different companies, or branches that belong to one company and require
balancing. If this feature is disabled, the users can create interbranch transactions between only branches
that belong to one company and do not require balancing.

In a production environment, aer the features are enabled, you have to activate the
Acumatica ERP license by using the Activate License (SM201510) form. Each particular feature
may be subject to additional licensing; please consult the Acumatica ERP sales policy for
details.

2. On the Companies (CS101500) form, you create the company entity in the system, and specify a type. You
then add branches on the Branches (CS102000) form. For details, see Company with Branches that Do Not
Require Balancing: Implementation Activity.
3. On the Companies (CS101500) form, you create the company’s actual ledger. All branches of the company
will use this single ledger for posting. For details, see General Ledger: To Create an Actual Ledger.

Regardless of the company type, you can configure and use only one actual ledger for a
company, which all branches will use.

Company Settings
In Acumatica ERP, you create new companies or maintain existing companies by using the Companies (CS101500)
form. On this form, to configure the company with branches that require balancing, you have to specify the
company's identifier, name, and address, and you ensure that the With Branches Requiring Balancing type is
selected. You also specify the base currency of the company, which you cannot change aer you save the newly
created company for the first time. If you create multiple companies in the tenant, this base currency will be used
automatically for all companies and cannot be changed, if the Multiple Base Currencies feature is disabled on the
Enable/Disable Features (CS100000) form. (If the company is not the first company you are creating in the tenant,
the base currency is already filled in.)
Aer you have created the company, you add branches to it on the Branches (CS102000) form. You can navigate
directly to this form or open it by clicking Add Branch on the Companies form. On the Branches form, for each
 Preparing a Company for Implementation | 62

branch you want to add, you specify its general information, including its identifier, name, address, default
location, and employees.

Aer the company has been configured, the With Branches Requiring Balancing company type can still
be changed to Without Branches if the company has only one branch or no branches at all.
The company type can be changed from With Branches Requiring Balancing to With Branches Not
Requiring Balancing at any time even if there are transactions posted for the company.
The company type can be changed from With Branches Not Requiring Balancing to With Branches
Requiring Balancing if there are transactions posted for the company.

Company with Branches that Require Balancing: Implementation Checklist

You can use the tables in this topic to quickly check whether the configuration steps for a company with branches
that require balancing are being performed in Acumatica ERP. The following tables cover both the mandatory
configuration steps and the recommended configuration steps.

Table: Mandatory Configuration

To ensure that the basic configuration of a company has been implemented properly, make sure that the necessary
features have been enabled and the needed entities have been created, as listed in the following table.

Form Things to Check Notes

Enable/Disable Features (CS100000) Make sure that the Standard Fi-  

form nancials group of features and the
Multibranch Support and Multicom-
pany Support features have been
enabled.

Companies (CS101500) form Make sure that the necessary com-  

pany has been created with the
With Branches Requiring Balancing
type and that the necessary ledger
has been created and assigned to
it.

Branches (CS102000) form Make sure that the branches of the  

company have been created.

Chart of Accounts (GL202500) form Make sure that the necessary ac-  
counts for performing financial op-
erations have been added.

General Ledger Preferences Make sure that all necessary set-  

(GL102000) form tings to use the general ledger
functionality have been specified,
including the YTD Net Income and
Retained Earnings accounts.

Financial Year (GL101000) form Make sure that the first financial  
year in which the company will op-
erate has been added and the peri-
ods have been generated.
 Preparing a Company for Implementation | 63

Form Things to Check Notes

Company Financial Calendar Make sure that the periods in which  

(GL201100) form the company will operate are open.

Cash Management Preferences Make sure that all necessary set-  

(CA102000) form tings to use the cash management
functionality have been specified,
including the Cash-in-Transit ac-
count.

Cash Accounts (CA202000) form Make sure that the necessary cash  
accounts to record cash entries and
funds transfers have been created,
and that the necessary entry types
have been assigned to them.

Payment Methods (CA204000) form Make sure that the payment meth-  
ods to be used have been created
and have been defined to use the
proper accounts.

Entry Types (CA203000) form Make sure that the necessary entry  
types for processing cash payments
have been created and assigned to
the related cash accounts.

Credit Terms (CS206500) form Make sure that the needed credit  
terms—those that are commonly
used by vendors in their relations
with your company, and those that
are used by your company in its re-
lations with customers—have been
created.

Vendor Classes (AP201000) form Make sure that the default vendor  
class, which provides the default
values for vendor accounts and for
other vendor classes, has been cre-
ated.

Accounts Payable Preferences Make sure that all necessary set-  

(AP101000) form tings to use the accounts payable
functionality have been specified.

Statement Cycles (AR202800) form Make sure that the necessary state-  
ment cycles, which will later be
used to track customers' outstand-
ing balances and send electronic
or printed statements to the cus-
tomers, have been created.
 Preparing a Company for Implementation | 64

Form Things to Check Notes

Customer Classes (AR201000) form Make sure that the default cus-  
tomer class, which provides the de-
fault values for customer accounts
and for other customer classes, has
been created.

Accounts Receivable Preferences Make sure that all necessary set-  

(AR101000) form tings to use the accounts receiv-
able functionality have been speci-
fied.

Table: Recommended Configuration

The settings listed in the following table can be specified to simplify the process of creating entities in the system.

Form Things to Check Notes

General Ledger Preferences Make sure that the following set-  

(GL102000) form tings have been specified:
• The Automatically Post on Re-
lease check box is selected.
• The Hold Batches on Entry
check box is cleared.

Cash Management Preferences Make sure that the following set-  

(CA102000) form tings have been specified:
• The Automatically Post to GL
on Release check box is select-
ed.
• The Hold Transactions on En-
try check box is cleared.
• The Require Document Ref.
Nbr. on Entry check box is
cleared.
 Preparing a Company for Implementation | 65

Form Things to Check Notes

Accounts Payable Preferences Make sure that the following set-  

(AP101000) form tings have been specified:
• The Automatically Post on Re-
lease check box is selected.
• A vendor class, which will be
used to provide default values
for vendor accounts (and for
other vendor classes), is select-
ed in the Default Vendor Class
ID box.
• The Hold Documents on Entry
check box is cleared.
• The Require Approval of Bills
Prior to Payment check box is
cleared.
• The Validate Document Totals
on Entry check box is cleared.
• The Require Vendor Reference
check box is cleared.

Accounts Receivable Preferences Make sure that the following set-  

(AR101000) form tings have been specified:
• The Automatically Post on Re-
lease check box is selected.
• A customer class, which will be
used to provide default values
for customer accounts (and for
other customer classes), has
been selected in the Default
Customer Class ID box.
• The Hold Documents on Entry
check box is cleared.
• The Validate Document Totals
on Entry check box is cleared.
• The Require Payment Ref-
erence on Entry check box is
cleared.

Company with Branches that Require Balancing: Implementation Activity

In this activity, you will learn how to enable the necessary set of features, define settings for a company with
branches that require balancing, and define settings for the branches of the company.

Story
Suppose that as an administrator, you are going to start configuring the Muffins & Cakes company with the
following branches, which require balancing:
 Preparing a Company for Implementation | 66

• Muffins Wholesale Center

• Muffins Retail Shop
The company is going to use the default features and the Multibranch Support, Multicompany Support, and Inter-
Branch Transactions features; you need to enable these features. You then need to configure a company entity in
Acumatica ERP for the Muffins & Cakes company with these two offices in Denver.

System Preparation
Before you start configuring a company with branches that require balancing, sign in to a tenant with the out-of-
the-box company as a system administrator with the admin login.

Step 1: Enabling the Minimum Set of Features

To enable the minimum set of features, do the following:
1. Open the Enable/Disable Features (CS100000) form.
Notice that the check boxes are initially selected for the standard features. These features include Finance,
Standard Financials, Multibranch Support, Multicompany Support, Centralized Period Management,
Monitoring & Automation, Scheduled Processing, Workflow Automation, Authentication, and Third-Party
Integrations, and Authentication.
2. Select the Multibranch Support and Multicompany Support check boxes.
It is now possible to create multiple companies without branches, a company with multiple branches, or
multiple companies with or without branches within one tenant.
3. Select the Inter-Branch Transactions check box under the Advanced Financials group of features.
You can now configure account mapping rules that will be used to generate interbranch balancing
transactions.
4. On the form toolbar, click Enable to enable the selected set of features.

In a production environment, aer the features are enabled and before you proceed with implementation, you
have to activate the Acumatica ERP license by using the Activate License (SM201510) form. In this practice activity,
you are using Acumatica ERP under the trial license, which doesn't require activation and provides all available
features.

Step 2: Defining a Company With Branches that Do Not Require Balancing

To configure the company without branches for Muffins & Cakes, do the following:
1. Open the Companies (CS101500) form.
2. In the Summary area, specify the following settings:
• Company ID: MUFFINS
• Company Name: Muffins & Cakes
• Company Type: With Branches Requiring Balancing
3. In the Main Address section of the Company Details tab, specify the following address settings:
• City: Denver
• Country: US - United States of America
• State: CO - Colorado
4. In the Base Currency Settings (Shared) section, specify USD in the Base Currency ID box.
 Preparing a Company for Implementation | 67

The base currency you select in this box for the first company in the tenant will be applied
to all companies in the tenant. Aer you specify the base currency and save your changes,
the base currency can be overridden until GL preferences are saved on the General Ledger
Preferences (GL102000) form. Once the GL preferences are saved, the base currency cannot be
overridden.

5. In the Miscellaneous Settings (Shared) section, enter 2 in the Price/Cost Decimal Places box.

If you later add additional companies to the tenant, the settings you specify in this area for the
first company in the tenant will be applied to all companies in the tenant.

6. On the form toolbar, click Save to save your changes.

Step 3: Defining Branches for the Company

To configure branches for Muffins & Cakes, do the following:
1. While you are still viewing the Muffins & Cakes company of the Companies (CS101500) form, on the
Branches tab, click Add Branch.
The Branches (CS102000) form opens with the predefined company. First, you will create a branch for the
Muffins & Cakes wholesale center.
2. In the Summary area, specify the following settings:
• Branch ID: MUFNWHOLE
• Branch Name: Muffins Wholesale Center
• Company: MUFFINS
3. In the Main Address section of the Branch Details tab, specify the following address details:
• City: Denver
• Country: US (United States of America) (inserted automatically)
• State: CO - Colorado
4. On the form toolbar, click Save.
5. On form toolbar of the Branches form, click Add New Record and create a branch for the SweetLife retail
store with the following settings:
• Branch ID: MUFNRETAIL
• Branch Name:Muffins Retail Shop
• Company: MUFFINS
• City: Denver
• Country: US (United States of America) (inserted automatically)
• State: CO - Colorado
6. On the form toolbar, click Save. Close the Branches form.

The system returns you to the Companies form, on which you can now create an actual ledger for the company and
branches you have created. For details, see General Ledger: To Create an Actual Ledger.

Step 3: Reviewing the Base Currency Settings

To review the settings of the company's base currency that you selected in Step 2, do the following:
1. Open the Currencies (CM202000) form.
2. In the Currency ID box, select USD.
 Preparing a Company for Implementation | 68

3. In the Summary area, review the values in the Description, Currency Symbol, and Decimal Precision
boxes for the base currency you selected for the company in Step 2.
Notice that the Active check box is selected automatically and is unavailable for editing. This setting means
that this is the base currency.
 Implementing Basic Financials | 69

Implementing Basic Financials

To make it possible to process GL transactions, accounts payable documents, and accounts receivable documents
in Acumatica ERP, you need to implement the basic financial functionality in the system. This chapter describes the
basic configuration to be performed to further configure the system for processing financial documents.

General Ledger

In Acumatica ERP, you have to define the general ledger to store the financial records of the company. You also
configure the related general ledger functionality to make it possible for users to record and track GL transactions
in the system.

General Ledger: General Information

When you initially implement Acumatica ERP, you implement the general ledger functionality that makes it
possible for system implementation to proceed and for users to record and track GL transactions in the system.
The implementation process includes creating an actual ledger for a company you have created, defining the chart
of accounts, specifying the general ledger preference settings, and defining the company's financial year in the
system.

Learning Objectives
In this chapter, you will learn how to implement the basic configuration of the general ledger functionality for a
company. In particular, you will learn how to do the following:
• Create an actual ledger
• Define the chart of accounts
• Specify the general ledger preference settings
• Set up the first financial year in the system
• Generate periods for the financial year
• Open the generated periods in the system

Applicable Scenarios
You perform the basic configuration of the general ledger functionality during the implementation of Acumatica
ERP, aer a company has been configured in the system and before other parts of the system have been
configured.

Workflow of the Implementation of the General Ledger Functionality

To implement the general ledger functionality in Acumatica ERP, you perform the following general steps:
1. On the Companies (CS101500) form, you create the actual ledger for a company. For details, see General
Ledger: Actual Ledger.
2. On the Chart of Accounts (GL202500) form, you add the accounts that are necessary for performing the
company's financial operations. For more information, see General Ledger: Chart of Accounts.
3. On the General Ledger Preferences (GL102000) form, you specify the settings for processing transactions in
the general ledger, as described in General Ledger: To Specify General Ledger Preferences.
 Implementing Basic Financials | 70

4. On the Financial Year (GL101000) form, you set up the first financial year when the company starts
processing its operations in Acumatica ERP. You then generate periods on the Master Financial Calendar
(GL201000) form and open them on the Manage Financial Periods (GL503000) form. For details, see General
Ledger: Financial Years.

General Ledger: Configuration Prerequisites

Before you start to implement the general ledger functionality, you must be sure that the system has been
configured properly and that all required entities have been created, as described in the following sections.

Enabling the Needed Features

On the Enable/Disable Features (CS100000) form, the minimum set of features has to be enabled. For details, see
Company Without Branches: To Configure a Company Without Branches.

Configuring the System

On the Companies (CS101500) form, you need to make sure that the companies of the organization have been
configured and that the appropriate actual ledger has been assigned to each of them. For more information, see
Company Without Branches: To Configure a Company Without Branches and General Ledger: To Create an Actual
Ledger.

General Ledger: Actual Ledger

In Acumatica ERP, a ledger of the Actual type is at the core of your company’s financial records. The records in the
actual ledger make up the history of all financial transactions of your organization. The system updates the actual
ledger every time you release and post a financial transaction in the system.
In this topic, you will read about creating actual ledgers in the system.

Creation of an Actual Ledger

You can specify only one ledger of the Actual type for each company. You add a new actual ledger in either of the
following ways:
• To first add a new ledger and then associate it with existing companies and branches, you use the Ledgers
(GL201500) form. Aer you create the actual ledger, you can associate it with existing companies in the
system.
• To first create a new company and then add a new ledger, you use the Companies (CS101500) form. (You
create the ledger directly on this form.)
If you have multiple companies, they can use the same ledger of the Actual type, or they can use different ledgers,
depending on the transaction processing requirements of your organization and its organizational structure.

You cannot delete a ledger or change its currency or type if the ledger has any journal entries or other
records.
 Implementing Basic Financials | 71

General Ledger: To Create an Actual Ledger

In this activity, you will learn how to create an actual ledger for a company in Acumatica ERP.

Story
Suppose that as an administrator, you need to create an actual ledger that will hold the history of all financial
transactions of the SweetLife Fruits & Jams company.

Process Overview
In this activity, on the Companies (CS101500) form, you will create an actual ledger for a new company.

System Preparation
Before you start adding an actual ledger, make sure that the company you plan to associate with this actual ledger
has been created, as described in Company Without Branches: To Configure a Company Without Branches.

Step: Creating an Actual Ledger

Perform the following instructions to create the actual ledger to be used by the company:
1. Sign in to the company you have prepared with the admin username.
2. Open the Companies (CS101500) form.
3. In the Company ID box, select SWEETLIFE.
4. On the form toolbar, click Create Ledger.
5. In the Create Ledger dialog box, which opens, in the Ledger ID box, type ACTUAL.
6. Click Create.
The system creates and saves the ledger and closes the dialog box.
7. On the Ledgers tab, verify that the ledger you have created is listed in the table.

Activity Recap
In this activity, we have illustrated how to create a ledger with the Actual type for a new company.

General Ledger: Chart of Accounts

Each company has its own structured list of general ledger accounts. Acumatica ERP provides you with the ability
to define a chart of accounts that suits your company's needs. To define the chart of accounts in the system, you
have to perform the following tasks:
1. Plan account identifiers if they have not yet been defined for the configured company
2. Modify the ACCOUNT segmented key based on your planned structure, if necessary
3. Add accounts to the chart of accounts (including the Retained Earnings and YTD Net Income accounts)
4. Optional: Restrict user access to accounts
 Implementing Basic Financials | 72

Account Classes
For convenient grouping, sorting, and filtering of information associated with GL accounts in reports and inquiries,
you can assign accounts to account classes on the Chart of Accounts (GL202500) form. Acumatica ERP provides
predefined account classes, which can be modified if needed, and you can add new account classes on the Account
Classes (GL202000) form. For details on how to create an account class in the system, see To Create an Account
Class.

Before you add accounts to the chart of accounts, you should review the predefined account classes and learn
about the capabilities of account classes, so you can determine which classes to assign to accounts.

Entry of Chart of Accounts

In Acumatica ERP, you define the chart of accounts on the Chart of Accounts (GL202500) form. When you define the
chart of accounts, you assign to each account a name, a unique identifier, and an account type. You can prepare the
chart of accounts in an .xlsx or .csv file and upload the file to the system. Alternatively, you can add accounts
individually.

Mandatory Accounts
In Acumatica ERP, you must create two system-maintained accounts of the Liability type: YTD (Year-to-Date) Net
Income and Retained Earnings. Once you have created these accounts, you need to specify them on the General
Ledger Preferences (GL102000) form.

The YTD Net Income account tracks the net income that has been accumulated since the beginning of the financial
year—that is, the difference between the amounts that have been posted to all income accounts and the amounts
that have been posted to all expense accounts. The system updates this account for every transaction posted to an
income or expense account. For a new financial year, the system resets the balance of the YTD Net Income account
to zero.

Users cannot post transactions directly to the YTD Net Income account. Aer any transaction has been
posted to an income or expense account, the selected YTD Net Income account cannot be changed in
the YTD Net Income Account box on the General Ledger Preferences form.

When the system updates the balance of the YTD Net Income account, it also updates the beginning balance of the
Retained Earnings account in the next financial year for which financial periods are defined. The Retained Earnings
account accumulates the net income or loss that is retained by the company. Retained earnings are summarized
over all years, starting with the first year of company operations in Acumatica ERP. Users can also post direct
transactions to this account, such as dividends paid to shareholders. This account is normally reported in the
Shareholders' Equity section of the balance sheet.

General Ledger: To Create a Chart of Accounts

In this activity, you will learn how to modify the ACCOUNT segmented key. You will also define the chart of accounts
by uploading a list of GL accounts to the system.

Story
Suppose that as an administrator, you need to add the chart of accounts of the SweetLife Fruits & Jams company to
Acumatica ERP. Further suppose that an accountant of the company has provided a file that lists the GL accounts
to be used and their settings (including the account classes; you will use the predefined classes). You will review
the list of accounts, modify the ACCOUNT segmented key, and create the chart of accounts by uploading the file
provided by the accountant.
 Implementing Basic Financials | 73

Process Overview
In this activity, you will modify the length of the ACCOUNT segmented key on the Segmented Keys (CS202000) form.
On the Chart of Accounts (GL202500) form, you will upload the chart of accounts from an Excel file.

System Preparation
Before you start defining the chart of accounts in the system, make sure that the following tasks have been
performed:
1. The company has been created with an actual ledger; see Company Without Branches: To Configure a
Company Without Branches and General Ledger: To Create an Actual Ledger.
2. The Basic_Company_COA file has been downloaded with the chart of accounts of the SweetLife company.

Step 1: Modifying the ACCOUNT Segmented Key

To modify the ACCOUNT segmented key, do the following:
1. Sign in to the company you have prepared with the admin username.
2. Review the Basic_Company_COA file that you have downloaded. Notice that the account identifiers consist
of only one segment of five characters.
3. Open the Segmented Keys (CS202000) form.
4. In the Segmented Key ID box, select ACCOUNT.
5. For the only row in the table, in the Length column, specify 5.
6. On the form toolbar, click Save.
Users can use account identifiers that are no longer than the specified length for the segmented key.

Step 2: Uploading the Company's GL Accounts

You can create the chart of GL accounts in any system by entering the accounts manually or by uploading a file that
lists them. In this activity, you will upload the file that SweetLife's accountant has provided. Do the following to
upload the chart of accounts:
1. Open the Chart of Accounts (GL202500) form.
2. On the form toolbar, click Load Records from File.
3. In the File Upload dialog box, which opens, select the file path to the Basic_Company_COA file, and click
Upload.
4. In the Common Settings dialog box, which opens, leave the default settings, and click OK.
5. In the Columns dialog box, leave the current mapping, and click OK.
6. On the form toolbar, click Save.

You should review the chart of accounts, which now includes all the necessary accounts, including two accounts
that are required for Acumatica ERP: Net Income (33000) and Retained Earnings (32000).
The other necessary accounts are the following:
• 20000: The account to be used to record amounts owed to vendors for items and services purchased on
credit. This account will later be specified as the AP account.
• 11000: The account to be used to record amounts owed by customers for services provided to them on
credit. This account will later be specified as the AR account.
 Implementing Basic Financials | 74

• 10500: The account to be used as the intermediate account for funds transfers. This account will later be
specified as the cash-in-transit account.

Activity Recap
In this activity, we have illustrated the following:
1. The system administrator modified the ACCOUNT segmented key so that its length is five characters, which
matches the length of accounts in the Basic_Company_COA file.
2. The system administrator uploaded the chart of accounts from the Basic_Company_COA file to the system.

General Ledger: To Specify General Ledger Preferences

In this activity, you will learn how to specify the basic settings to be used for the general ledger functionality.

Story
Suppose that a company with an actual ledger has been created and a chart of accounts has been defined in
Acumatica ERP. Acting as an administrator, you need to specify the preference settings related to the general ledger
functionality. You will specify the accounts that are mandatory for the system and other settings that make it easier
for users to create entities in the system.

Process Overview
In this activity, you will configure general ledger preferences on the General Ledger Preferences (GL102000) form.

System Preparation
Before you start specifying the general ledger preference settings, make sure that the following tasks have been
completed in the system:
1. The company has been created and its actual ledger has been specified; see Company Without Branches: To
Configure a Company Without Branches and General Ledger: To Create an Actual Ledger.
2. The Net Income and Retained Earnings accounts have been added to the chart of accounts, as described in
General Ledger: To Create a Chart of Accounts.

Step: Specifying the General Ledger Preference Settings

You specify the basic settings related to processing GL transactions as follows:
1. Sign in to the company you have prepared with the admin username.
2. Open the General Ledger Preferences (GL102000) form.
3. In the YTD Net Income Account box in the Chart of Accounts Settings section, select 33000 - Net Income.
This is a required setting for a company.
4. In the Retained Earnings Account box, select 32000 - Retained Earnings. This setting is also required for a
company.

You can select only an account with the Liability type in the Retained Earnings Account box. If
you enter an account with another type, the system displays an error message.

5. On the form toolbar, click Save.

 Implementing Basic Financials | 75

6. In the Posting Settings section, make sure the Automatically Post on Release check box is selected.
All batches will be automatically posted to the general ledger aer release. This setting simplifies batch
processing, because no batches with the Unposted status will be generated.
7. In the Data Entry Settings section, clear the Hold Batches on Entry check box.
When new batches are saved, they have the Balanced status. This setting also simplifies the processing of
batches.
8. On the form toolbar, click Save.

Activity Recap
In this activity, we have illustrated how to configure general ledger preferences—the settings that affect data entry
and the posting of transactions.

General Ledger: Financial Years

In Acumatica ERP, transactions are posted to the financial periods that have been defined in the system. Thus,
before any transactions are posted, you have to define the structure of the financial year in the system. Based on
this structure of the financial year, you can generate periods for any number of financial years and then open the
periods.

Financial Year Setup

You define the financial year on the Financial Year (GL101000) form by doing the following:
1. You decide which year should be the first year, and specify it in the system. The first financial year usually
designates the year when the company starts processing its operations in Acumatica ERP. However, we
recommend that you define the first financial year so that it includes the last period before the company
started to use Acumatica ERP, even if this means defining an extra financial year.
You can upload the ending balances of accounts to that period later, aer periods have been defined.
2. You define the structure of the financial year that your company will use—that is, you define the periods of
the year in the system.
3. If it is necessary to have a special period for posting adjustments at the end of the year, you add an
adjustment period.

Aer you have set up the financial year, you need to generate a master calendar.

Master Calendar Generation

You generate a master financial calendar on the Master Financial Calendar (GL201000) form for any number of
financial years by clicking Generate Calendar on the form toolbar.
Aer periods have been generated, you can modify them before any transactions have been made. To do so, you
select the User-Defined Periods check box.
Aer you have generated the master calendar, you open any number of periods for posting.

Period Opening
You have to open the periods to which users will post transactions and documents. To open periods, on the Master
Financial Calendar (GL201000) form, you first make sure the necessary year is selected in the Financial Year box,
and then on the More menu, click Open Periods.
 Implementing Basic Financials | 76

Aer you have opened periods, they can be used in transactions and documents. At any time, you can have
multiple open periods; opening one period does not require you to close the previous one.

General Ledger: To Define a Financial Year

In this activity, you will learn how to set up a financial year, generate periods for the first year, and open the
generated periods.

Story
Suppose that the SweetLife company starts its operations in January 2023, each of its financial periods lasts one
month, and an additional period for posting adjustments is necessary. Acting as an administrator, you need to set
up the financial year that meets these criteria, generate periods for the financial year, and open them.

Process Activity
In this activity, you will configure the structure of the financial year on the Financial Year (GL101000) form. On
the Master Financial Calendar (GL201000) form, you will generate periods of the first financial year. Finally, on the
Manage Financial Periods (GL503000) form, you will open the financial periods.

System Preparation
Before you start defining the financial year, make sure that the company with an actual ledger has been created, as
described in Company Without Branches: To Configure a Company Without Branches and General Ledger: To Create
an Actual Ledger.

Step 1: Setting Up a Financial Year

To set up the first financial year, do the following:
1. Sign in to the company you have prepared with the admin username.
2. Open the Financial Year (GL101000) form.
3. In the Financial Year Starts On box of the Summary area, select 1/1/2023.
4. In the Period Type box, make sure Month is selected.
5. Select the Has Adjustment Period check box.
6. On the form toolbar, click Create Periods.
7. Click Save to save the settings of the financial year.

Step 2: Generating Periods for the First Financial Year

To generate the financial periods for the first financial year, do the following:
1. Open the Master Financial Calendar (GL201000) form.
2. In the Financial Year box of the Summary area, make sure 2023 is selected.
3. On the form toolbar, click Generate Calendar.
4. In the Generate GL Calendar dialog box, which opens, make sure that 2023 is selected in the From Year and
To Year boxes, and click OK.
The system generates periods for the 2023 financial year.
 Implementing Basic Financials | 77

We do not recommend generating financial periods far into the future, because doing so
would limit and complicate any changes to the configuration of the financial year that may be
needed because of organizational changes.

Step 3: Opening the Periods

To open the periods you have generated, do the following:
1. While you are still on the Master Financial Calendar (GL201000) form, on the More menu, click Open Periods.
The Manage Financial Periods (GL503000) form opens with the Open option selected in the Action box of the
Summary area.
2. On the form toolbar, click Process All.
The system opens the Processing dialog box and runs the process of opening periods.
3. Close the Processing dialog box.

Activity Recap
In this activity, we have illustrated the following:
1. The system administrator configured the structure of the financial year that the new company uses.
2. The system administrator created the first financial year in the system and generated financial periods for
this year.
3. The system administrator opened all the financial periods to make it possible for users to select them in
documents and to post transactions to them.

Credit Terms

In Acumatica ERP, users have to define the credit terms to be used by vendors in their relations with the company
and by the company in its relations with customers. In this chapter, you will find general information on credit
terms and an activity that provides instructions on how to implement credit terms in the system.

Credit Terms: General Information

The credit terms that a company offers to customers and the credit terms the company uses to pay vendors need
to be defined in Acumatica ERP. When users select credit terms in a document, the credit terms provide automatic
calculation of the due date and the end date of the cash discount period, as well as the cash discount amount in
the document. You can define credit terms for payments as having a single installment or multiple installments.

Learning Objectives
In this chapter, you will learn how to define credit terms in the system.

Applicable Scenarios
You define credit terms before you start operations in the system, and when new credit terms need to be defined
for customers and vendors.
 Implementing Basic Financials | 78

Creation of Credit Terms

These are the general steps you need to perform to create a set of credit terms on the Credit Terms (CS206500) form:
1. You enter a descriptive identifier for the credit terms you want to configure.
2. You define the scope of the credit terms: whether they can be applied to only customer documents, only
vendor documents, or both types of documents.
3. You specify how a due date is calculated for a document.
4. Optional: You configure the cash discount conditions for single-installment credit terms.
5. Optional: If needed, you change the default installment type of credit terms, which is Single, to Multiple; you
then define the number of installments and their payment schedule.

If the company has been operating for some time, it already has established its credit terms. We recommend that
you compare the credit terms the company offers to customers and the credit terms offered to the company by
vendors, looking for overlap, because in Acumatica ERP, you can use the same credit terms for both customer
payments and payments to vendors.

Credit Terms: Configuration Prerequisites

Before you start to configure credit terms, you must be sure that the system has been configured properly and that
all required entities have been created, as described in the following sections.

Enabling the Needed Features

On the Enable/Disable Features (CS100000) form, the minimum set of features has to be enabled. For details, see
Company Without Branches: To Configure a Company Without Branches.

Configuring the System

On the Companies (CS101500) form, you need to make sure that the companies of the organization have been
configured and that the appropriate actual ledger has been assigned to each of them. For more information, see
Company Without Branches: To Configure a Company Without Branches and General Ledger: To Create an Actual
Ledger.

Credit Terms: To Define Credit Terms

In this activity, you will learn how to define credit terms, which can be used by vendors in their relations with the
company and by the company in its relations with customers.

Story
Suppose that SweetLife has agreements with its customers and vendors stipulating that the full amount of each
document will be paid within 30 days; no cash discounts are provided. Acting as an administrator, you have to
define one set of credit terms, which indicate that the full amount of each document must be paid within 30 days.

Process Overview
In this activity, on the Credit Terms (CS206500) form, you will create the credit terms for the new company.
 Implementing Basic Financials | 79

System Preparation
Before you start defining the credit terms, make sure that the company and its actual ledger has been created, as
described in Company Without Branches: To Configure a Company Without Branches and General Ledger: To Create
an Actual Ledger.

Step: Defining Credit Terms

To define the needed set of credit terms, do the following:
1. Sign in to the company you have prepared with the admin username.
2. Open the Credit Terms (CS206500) form.
3. On the form toolbar, click Add New Record.
4. In the General Settings section, specify the following settings:
• Terms ID: 30D
• Description: 30 Days
5. In the Due Day Settings section, specify the following settings:
• Due Day Type: Fixed Number of Days
• Due Day 1: 30
6. In the Installment Type box of the Installment Settings section, make sure Single is selected.
7. On the form toolbar, click Save.

When the applicable credit terms have been defined in the system, vendor and customer classes (and vendors and
customers) can be created.

Activity Recap
In this activity, we have illustrated how to set up the 30D credit terms for a fixed number of days and with the Single
installment type.

Accounts Payable

Before users can start adding vendors and documents related to vendors in Acumatica ERP, the basic accounts
payable functionality has to be implemented in the system. This chapter describes the basic configuration to be
performed, including creating vendor classes and specifying the preference settings for accounts payable.

Accounts Payable: General Information

For users to be able to define vendors and enter and process documents to vendors in the system, the accounts
payable functionality has to be implemented in Acumatica ERP. The implementation process includes creating
vendor classes and specifying the accounts payable preference settings.

Learning Objectives
In this chapter, you will learn how to implement the basic configuration of the accounts payable functionality for a
company.
 Implementing Basic Financials | 80

Applicable Scenarios
You perform the basic configuration of the accounts payable functionality during the implementation of
Acumatica ERP, aer a company has been configured in the system and the general ledger functionality and cash
management functionality have been implemented.

Workflow of the Implementation of the Accounts Payable Functionality

To implement the accounts payable functionality, you perform the following general steps:
1. On the Vendor Classes (AP201000) form, you create the default vendor class, which will be used to provide
default values for vendor accounts of the class when these vendors are created and for other vendor classes
that may be created. For details, see Accounts Payable: To Create a Vendor Class.
2. On the Accounts Payable Preferences (AP101000) form, you specify the necessary settings (and any optional
settings) to be used in accounts payable. For details, see Accounts Payable: To Specify Accounts Payable
Preferences.

Accounts Payable: Configuration Prerequisites

Before you start to implement accounts payable, you must be sure that the system has been configured properly
and that all required entities have been created, as described in the following sections.

Enabling the Needed Features

On the Enable/Disable Features (CS100000) form, the minimum set of features has to be enabled. For details, see
Company Without Branches: To Configure a Company Without Branches.

Configuring the System

You need to make sure the following implementation tasks have been performed in Acumatica ERP before you
begin implementing accounts payable:
• On the Companies (CS101500) form, the companies of the organization have been configured, and the
appropriate actual ledger has been assigned to each company. For details, see Company Without Branches:
To Configure a Company Without Branches and General Ledger: To Create an Actual Ledger.
• On the Chart of Accounts (GL202500) form, the accounts to be used with the accounts payable functionality
have been defined. For details, see General Ledger: To Create a Chart of Accounts.
• On the General Ledger Preferences (GL102000) form, the preference settings for the general ledger
functionality have been specified. For more information, see General Ledger: To Specify General Ledger
Preferences.
• On the Cash Accounts (CA202000) form, the cash accounts to be used for recording payments to vendors
have been created. For details, see Cash Management: To Create Cash Accounts.
• On the Payment Methods (CA204000) form, the payment methods to be used in accounts payable have been
properly configured. For more information, see Cash Management: To Modify a Payment Method.
• On the Credit Terms (CS206500) form, the credit terms to be used by vendors in their relations with the
company have been configured. For details, see Credit Terms: To Define Credit Terms.
 Implementing Basic Financials | 81

Accounts Payable: Vendor Classes

A vendor class groups vendors that have similar characteristics. Vendor classes can be based on the types of goods
or services you purchase from vendors of the class or on other properties, such as the vendors' currency and
payment methods. For instance, you might find it useful to create one vendor class for tax agencies and another for
1099 vendors.

Creation of a Vendor Class

You define vendor classes and their settings on the Vendor Classes (AP201000) form. You can then select the
appropriate vendor class when you are creating a vendor account on the Vendors (AP303000) form, which causes
the system to fill in the values of the class for the vendor. Any of these default values can be overridden.
During basic system configuration, you need to create only the vendor class to be used by default; you then specify
it as the default vendor class on the Accounts Payable Preferences (AP101000) form. Aer you specify the default
vendor class, when you create another vendor class, the system automatically inserts the values of the default
vendor class, any of which can be overridden. When you create a new vendor account, the default vendor class is
initially specified as the vendor class, but you can change it to any other class.

Accounts Payable: To Create a Vendor Class

You will now define the default vendor class in the system, which will provide many of the settings for newly
created vendors and for other vendor classes you create, thus easing the creation of these entities during the next
phase of implementation. Among other settings for the vendor class, you will specify the credit terms you have
created.

Story
Suppose that most of the vendors of the SweetLife company use the same settings, such as credit terms, payment
method, cash account, AP account, and cash discount account. Acting as an administrator, you need to create
a default vendor class with these settings so that it can supply default settings when vendors and other vendor
classes are created in the system.

Process Overview
In this activity, on the Vendor Classes (AP201000) form, you will create a vendor class and specify the default
settings for it.

System Preparation
Before you start creating the vendor class, make sure that the following tasks have been performed in the system:
1. The company has been created and an actual ledger has been assigned to it; see Company Without Branches:
To Configure a Company Without Branches and General Ledger: To Create an Actual Ledger.
2. The credit terms that are used by vendors have been created, as described in Credit Terms: To Define Credit
Terms.

Step: Creating the Default Vendor Class

To create the default vendor class, do the following:
 Implementing Basic Financials | 82

1. Sign in to the company you have prepared with the admin username.
2. Open the Vendor Classes (AP201000) form.
3. On the form toolbar, click Add New Record.
4. In the Summary area, specify the following settings:
• Class ID: DEFAULT
• Description: Default Vendor Class
5. In the Default General Settings section of the General tab, select US - United States of America in the
Country box.
6. In the Default Financial Settings section of the General tab, specify the following settings:
• Terms: 30D - 30 Days
• Payment Method: CHECK - Check Payment
• Cash Account: 10200 - Checking Account
7. On the GL Accounts tab, specify the following accounts:
• AP Account: 20000 - Accounts Payable
• Cash Discount Account: 52600 - Cash Discount
8. On the form toolbar, click Save.

You can now specify in the preference settings that this is the default vendor class, in addition to specifying other
basic settings that will be applicable in accounts payable. For details, see Accounts Payable: To Specify Accounts
Payable Preferences.

Activity Recap
In this activity, we have illustrated how to create a vendor class, specify the default financial settings for it, and
specify the required GL accounts used by this class.

Accounts Payable: To Specify Accounts Payable Preferences

In this activity, you will learn how to specify the basic settings to be used in accounts payable.

Story
Suppose that as an administrator, you need to define preference settings for the accounts payable functionality.
You need to specify the default vendor class and other settings that will make it easier for users to create AP
documents.

Process Overview
In this activity, on the Accounts Payable Preferences (AP101000) form, you will specify accounts payable
preferences.

System Preparation
Before you start specifying the accounts payable preference settings, make sure that the following tasks have been
performed in the system:
1. The company has been created and its actual ledger has been specified; Company Without Branches: To
Configure a Company Without Branches and General Ledger: To Create an Actual Ledger.
 Implementing Basic Financials | 83

2. The credit terms that are used by vendors have been created, as described in Credit Terms: To Define Credit
Terms.
3. The default vendor class has been created, as described in Accounts Payable: To Create a Vendor Class.

Step: Specifying the Accounts Payable Preferences

To specify the required and recommended settings that apply to accounts payable, do the following:
1. Sign in to the company you have prepared with the admin username.
2. Open the Accounts Payable Preferences (AP101000) form.
Note that all the required settings (that is, those marked with an asterisk) have already been specified by
default.
3. In the Posting Settings section of the General tab, make sure the Automatically Post on Release check
box is selected. With this setting, transactions related to AP documents will be automatically posted to the
general ledger once they are released.
4. In the Data Entry Settings section of the General tab, specify the following settings, which simplify the
processing of AP documents:
• Default Vendor Class ID: DEFAULT
• Hold Documents on Entry: Cleared
• Require Approval of Bills Prior to Payment: Cleared
• Validate Document Totals on Entry: Cleared
• Require Vendor Reference: Cleared
5. On the form toolbar, click Save.

Activity Recap
In this activity, we have illustrated how to set up accounts payable preferences—the data entry settings and the
settings that affect the posting and release of AP documents.

Accounts Receivable

Before users can start adding customer accounts and documents into Acumatica ERP, the basic accounts receivable
functionality has to be implemented in the system. This chapter describes the basic configuration to be performed,
including defining statement cycles, creating customer classes, and specifying the preference settings for accounts
receivable.

Accounts Receivable: General Information

For users to be able to define customers and enter and process customer documents in the system, the accounts
receivable functionality has to be implemented in Acumatica ERP. The implementation process includes defining
statement cycles, creating vendor classes, and specifying the accounts receivable preference settings.

Learning Objectives
In this chapter, you will learn how to implement the basic configuration of the accounts receivable functionality for
a company.
 Implementing Basic Financials | 84

Applicable Scenarios
You perform the basic configuration of the accounts receivable functionality during the implementation of
Acumatica ERP, aer the company has been configured in the system and the general ledger functionality and cash
management functionality have been implemented.

Workflow of the Implementation of the Accounts Receivable Functionality

To implement the accounts receivable functionality, you perform the following general steps:
1. On the Statement Cycles (AR202800) form, you define the necessary statement cycles to track customers'
outstanding balances. These cycles will later be used for sending electronic or printed statements to the
customers.
2. On the Customer Classes (AR201000) form, you create the default customer class, which will be used to
provide default values for customer accounts of the class when they are created and for other customer
classes that may be created.
3. On the Accounts Receivable Preferences (AR101000) form, you specify the settings to be used in accounts
receivable.

Accounts Receivable: Configuration Prerequisites

Before you start to implement accounts receivable, you must be sure that the system has been configured properly
and that all required entities have been created, as described in the following sections.

Enabling the Needed Features

On the Enable/Disable Features (CS100000) form, the minimum set of features has to be enabled. For details, see
Company Without Branches: To Configure a Company Without Branches.

Configuring the System

You need to make sure the following implementation tasks have been performed in Acumatica ERP before you
begin implementing accounts receivable:
• On the Companies (CS101500) form, the companies of the organization have been configured, and the
appropriate actual ledger has been assigned to each company. For details, see Company Without Branches:
To Configure a Company Without Branches and General Ledger: To Create an Actual Ledger.
• On the Chart of Accounts (GL202500) form, the accounts to be used with the accounts receivable
functionality have been defined. For more information, see General Ledger: To Create a Chart of Accounts.
• On the General Ledger Preferences (GL102000) form, the preference settings for the general ledger
functionality have been specified. For details, see General Ledger: To Specify General Ledger Preferences.
• On the Payment Methods (CA204000) form, the payment methods to be used in accounts receivable have
been properly configured. For more information, see Cash Management: To Modify a Payment Method.
• On the Credit Terms (CS206500) form, the credit terms to be used by the company in its relations with
customers have been configured. For details, see Credit Terms: To Define Credit Terms.
 Implementing Basic Financials | 85

Accounts Receivable: Statement Cycles

In Acumatica ERP, you can define any number of statement cycles to be used for collecting payments from
customers. At the end of each statement cycle, the company prepares statements and sends them to its customers.
Statements provide customers with records of their financial activity for a specific period, including the ending
balance.

Statement Cycle Setup

You use the Statement Cycles (AR202800) form to create new statement cycles and modify existing ones. For each
statement cycle, you define the following:
• The schedule according to which statements will be generated.
• The aging periods to be used. You can define five aging periods for each statement cycle, to group the
sums of the balances of open invoices, overdue charges, and debit memos by the number of days they are
past due. The system uses the aging period settings in accounts receivable aging reports, which users can
analyze to identify potential cash flow problems.
• The statement processing options.
• The overdue charges.
You can assign a statement cycle to a customer class by using the Customer Classes (AR201000) form and directly to
a customer on the Customers (AR303000) form.

Accounts Receivable: To Create a Statement Cycle

In this activity, you will learn how to define a statement cycle in the system.

Story
Suppose that the SweetLife company informs its customers about their current balances and outstanding
documents by sending customers statements at the end of every month. In the statements, the outstanding
customer documents should be broken down by the following aging periods: 0 to 10 days, 11 to 20 days, 21 to
30 days, and more than 30 days. The outstanding documents are aged based on their due dates. Acting as an
administrator, you need to define the statement cycle in the system.

Process Overview
In this activity, you will create a statement cycle on the Statement Cycles (AR202800) form.

System Preparation
Before you start defining statement cycles, make sure that the company has been created and its actual ledger has
been specified; see Company Without Branches: To Configure a Company Without Branches and General Ledger: To
Create an Actual Ledger.

Step: Defining a Statement Cycle

To define a statement cycle, do the following:
1. Sign in to the company you have prepared with the admin username.
 Implementing Basic Financials | 86

2. Open the Statement Cycles (AR202800) form.

3. On the form toolbar, click Add New Record.
4. In the General Settings section, specify the following settings:
• Cycle ID: EOM
• Description: End of Month
• Schedule Type: End of Month
5. In the Aging Settings section, specify the following settings:
• Use Financial Periods for Aging: Cleared
• Aging Period (Days), 1 –: 10
Once you specify the first aging period, the system automatically specifies the other aging periods, based
on the assumption that all the aging periods will have the same length. The system also automatically
specifies the descriptions for aging periods. If needed, you can change the automatically specified
settings of aging periods to custom ones.
• Age Based On: Due Date
This setting means that the system will use the due dates of the outstanding documents to determine the
appropriate aging period in customer statements and accounts receivable aging reports for outstanding
invoices, debit memos, and overdue charges.
6. On the form toolbar, click Save.

Activity Recap
In this activity, we have illustrated how to create a statement cycle and specify its aging settings.

Accounts Receivable: Customer Classes

A customer class groups customers that have similar characteristics. Customer classes can be based on the types
of goods or services the customers buy or on other properties, such as each customer's currency and payment
method.

Defining a Customer Class

You define customer classes and their settings on the Customer Classes (AR201000) form. You specify a customer
class when you create a customer account on the Customers (AR303000) form, which causes the system to fill in the
values of the class for the customer. Any of these default values can be overridden.
During basic system configuration, you need to create only the customer class to be used by default; you then
specify it as the default customer class on the Accounts Receivable Preferences (AR101000) form. When you create
a customer class, the system automatically inserts the values of the default customer class, any of which can
be overridden. When you create a new customer account, the default customer class is initially specified as the
customer class, but you can change it to any other class.

Accounts Receivable: To Create a Customer Class

In this activity, you will create a default customer class in the system. This class will provide many of the settings
for newly created customers and for other customer classes you create, thus easing the creation of these entities
during the next phase of implementation. Among other settings for the customer class, you will specify the credit
terms you have created.
 Implementing Basic Financials | 87

Story
Suppose that most of the customers of the SweetLife company use the same settings, such as credit terms,
statement cycle, payment method, sales account, AR account, and cash discount account. Acting as an
administrator, you need to create a default customer class with these settings so that it can supply default settings
when customers and other customer classes are created in the system.

Process Overview
In this activity, on the Customer Classes (AR201000) form, you will create the default customer class and specify its
settings.

System Preparation
Before you start creating the default customer class, make sure that the following tasks have been performed in the
system:
1. The company has been created and an actual ledger has been specified for it; see Company Without
Branches: To Configure a Company Without Branches and General Ledger: To Create an Actual Ledger.
2. The credit terms that are used by customers have been created, as described in Credit Terms: To Define
Credit Terms.
3. At least one statement cycle has been defined in the system, as described in Accounts Receivable: To Create
a Customer Class.

Step: Creating the Default Customer Class

To create the default customer class, perform the following instructions:
1. Sign in to the company you have prepared with the admin username.
2. Open the Customer Classes (AR201000) form.
3. On the form toolbar, click Add New Record.
4. In the Summary area, specify the following settings:
• Class ID: DEFAULT
• Description: Default Customer Class
5. In the Default General Settings section of the General tab, select US - United States of America in the
Country box.
6. In the Default Financial Settings section of the General tab, specify the following settings:
• Terms: 30D - 30 Days
• Statement Cycle ID: EOM
• Payment Method: CHECK - Check Payment
7. On the GL Accounts tab, specify the following accounts:
• AR Account: 11000 - Accounts Receivable
• Sales Account: 40000 - Sales Revenue
• Cash Discount Account: 52600 - Cash Discount
8. On the form toolbar, click Save.
 Implementing Basic Financials | 88

Activity Recap
In this activity, we have illustrated how to create a customer class, specify the default financial settings for it, select
the credit terms, and specify the required GL accounts used by this class.

Accounts Receivable: To Specify Accounts Receivable Preferences

In this activity, you will learn how to define the basic settings to be used for the accounts receivable functionality.

Story
Suppose that as an administrator, you need to define the preference settings for the accounts receivable
functionality. You need to specify the default customer class and other settings that will make it easier for users to
create AR documents.

Process Overview
In this activity, you will specify accounts receivable preferences on the Accounts Receivable Preferences (AR101000)
form.

System Preparation
Before you start specifying accounts receivable preference settings, make sure that the following tasks have been
performed in the system:
1. The company has been created and its actual ledger has been specified; see Company Without Branches: To
Configure a Company Without Branches and General Ledger: To Create an Actual Ledger.
2. The credit terms that are used by customers have been created, as described in Credit Terms: To Define
Credit Terms.
3. The default customer class has been created, as described in Accounts Receivable: To Create a Customer
Class.

Step: Specifying the Accounts Receivable Preferences

To specify the basic settings that will apply to accounts receivable, do the following:
1. Sign in to the company you have prepared with the admin username.
2. Open the Accounts Receivable Preferences (AR101000) form.
Note that all the required settings (that is, those marked with an asterisk) have already been specified by
default.
3. In the Posting Settings section of the General tab, make sure the Automatically Post on Release check
box is selected. With this setting, AR transactions will be automatically posted to the general ledger once
they are released.
4. In the Data Entry Settings section of the General tab, specify the following settings, which simplify the
processing of AR documents:
• Default Customer Class ID: DEFAULT
• Hold Documents on Entry: Cleared
• Validate Document Totals on Entry: Cleared
• Require Payment Reference on Entry: Cleared
 Implementing Basic Financials | 89

5. On the form toolbar, click Save.

Activity Recap
In this activity, we have illustrated how to set up accounts receivable preferences—data entry settings and the
settings that affect the posting and release of AR documents.

Cash Management

For your users to process cash transactions in Acumatica ERP, the cash management functionality has to be
implemented in the system. This chapter describes the basic configuration to be performed, including specifying
the preference settings for cash management, creating entry types, creating cash accounts, and modifying
payment methods.

Cash Management: General Information

For users to be able to record cash transactions in the system and for you to continue implementing financial
functionality in the system, the cash management functionality has to be implemented in Acumatica ERP. The
process of implementing the cash management functionality includes specifying cash management preference
settings, creating entry types for cash transactions, creating cash accounts, and modifying the payment methods
that have been predefined in the system.

Learning Objectives
In this chapter, you will learn how to implement the basic configuration of the cash management for a company.

Applicable Scenarios
You perform the basic configuration of the cash management functionality during the implementation of
Acumatica ERP, aer a company has been configured in the system and the general ledger functionality has been
implemented, and before other parts of the system have been configured.

Workflow of the Implementation of the Cash Management Functionality

To implement the cash management functionality, you perform the following general steps:
1. On the Cash Management Preferences (CA102000) form, you specify the settings related to the processing of
cash transactions. For details, see Cash Management: To Specify Cash Management Preferences.
2. On the Entry Types (CA203000) form, you add the necessary entry types for processing cash payments.
3. On the Cash Accounts (CA202000) form, you define the cash accounts to be used to record cash entries and
funds transfers. For details, see Cash Management: Cash Accounts.
4. On the Payment Methods (CA204000) form, you define the payment methods that the company uses to pay
its vendors, as well as the payment methods that customers use to pay the company.
 Implementing Basic Financials | 90

Cash Management: Configuration Prerequisites

Before you start to implement cash management, you must be sure that the system has been configured properly
and that all required entities have been created, as described in the following sections.

Enabling the Needed Features

On the Enable/Disable Features (CS100000) form, the minimum set of features has to be enabled. For details, see
Company Without Branches: To Configure a Company Without Branches.

Configuring the System

You need to make sure that the following implementation tasks have been performed in Acumatica ERP before you
begin implementing cash management:
• On the Companies (CS101500) form, the companies of the organization have been configured, and the
appropriate actual ledger has been assigned to each company. For more information , see Company Without
Branches: To Configure a Company Without Branches and General Ledger: To Create an Actual Ledger.
• On the Chart of Accounts (GL202500) form, the accounts to be used with the cash management functionality
have been defined, as described in General Ledger: To Create a Chart of Accounts.
• On the General Ledger Preferences (GL102000) form, the preference settings for the general ledger
functionality have been specified. For details, see General Ledger: To Specify General Ledger Preferences.

Cash Management: To Specify Cash Management Preferences

In this activity, you will learn how to specify the basic settings to be used for the cash management functionality.

Story
Suppose that the SweetLife company with an actual ledger has been created and the company's chart of accounts
has been defined in Acumatica ERP. Acting as an administrator, you need to specify the cash management
preference settings. You will specify the cash-in-transit account to be used, which is mandatory in the system, and
the settings that make it easier for users to create entities when using the cash management functionality.

Process Overview
In this activity, you will specify cash management preferences on the Cash Management Preferences (CA101000)
form.

System Preparation
Before you start specifying the cash management preference settings, make sure that the following tasks have been
performed in the system:
1. The company has been created and its actual ledger has been specified; see Company Without Branches: To
Configure a Company Without Branches and General Ledger: To Create an Actual Ledger.
2. The account that you plan to specify as the cash-in-transit account has been created, as described in
General Ledger: To Create a Chart of Accounts.
 Implementing Basic Financials | 91

Step: Specifying the Cash Management Preferences

You specify the basic settings the system will use for the cash management functionality as follows:
1. Sign in to the company you have prepared with the admin username.
2. Open the Cash Management Preferences (CA101000) form.
3. In the Cash-In-Transit Account box of the Reconciliation Settings section, select the 10500 - Cash in Transit
account.
This account is the only cash management setting that is required for a company.
4. In the Posting and Release Settings section, make sure that the Automatically Post to GL on Release
check box is selected.
With this setting, all cash transactions will be automatically posted to the general ledger aer release.
5. In the Data Entry Settings section, clear the Hold Transactions on Entry check box.
With this setting, when new cash documents are saved, they have the Balanced status, which simplifies the
processing of these documents.
6. Clear the Require Document Ref. Nbr. on Entry check box.
This setting prevents users from having to specify a reference number for cash transactions and deposits
created in the system.
7. On the form toolbar, click Save.

Activity Recap
In this activity, we have illustrated how to set up cash management preferences—the cash-in-transit account, the
settings for the posting and release of cash management documents.

Cash Management: Entry Types

In Acumatica ERP, you use entry types to classify cash transactions for correct processing and to provide default
values for transaction settings.

Entry Types
An entry type functions like a transaction template, providing default values for a transaction and indicating how
the transaction should be processed in the system. When you define an entry type on the Entry Types (CA203000)
form, you specify the type of transactions and documents for which the entry type can be used in the Module
column, selecting one of the following options:
• CA (default option): The entry type that is used for creating cash transactions (receipts and disbursements)
or recording bank service charges on cash management, accounts receivable, and accounts payable forms.
These transactions affect the balances of GL accounts only; that is, they do not affect customer or vendor
balances.
• AP: The entry type that is used for creating cash management transactions for which the system creates
prepayments (for transactions that are disbursements) or vendor refunds (for transactions that are receipts)
in accounts payable. These transactions affect vendor balances. AP entry types are used only on cash
management forms.
• AR: The entry type that is used for creating cash management transactions for which the system creates
payments (if the transaction is a receipt) or customer refunds (if the transaction is a disbursement) in
 Implementing Basic Financials | 92

accounts receivable. These transactions affect customer balances. AR entry types are used only on cash
management forms.
In general, the configuration of entry types consists of the following steps:
1. You determine which types of cash transactions the company usually generates.
2. You create the required entry types by using the Entry Types form.
3. On the Cash Accounts (CA202000) form, you associate each entry type you have created with the cash
account that is involved in the cash transactions of the entry type.

Cash Management: To Create an Entry Type

In this activity, you will learn how to define an entry type, which categorizes cash operations in the system.

Story
Suppose that as an administrator, you need to define entry types for cash operations of the SweetLife company. For
now, an entry type for recording bank service charges is needed.

Process Overview
In this activity, you will create an entry type on the Entry Types (CA203000) form.

System Preparation
Before you start creating the entry type, make sure that the following tasks have been performed in the system:
1. The company has been created, as has its actual ledger, as described in Company Without Branches:
Implementation Checklist and General Ledger: To Create an Actual Ledger.
2. The cash management preference settings have been defined, as described in Cash Management: To Specify
Cash Management Preferences.

Step: Defining an Entry Type

To define an entry type, perform the following instructions:
1. Sign in to the company you have prepared with the admin username.
2. Open the Entry Types (CA203000) form, and click Add Row.
3. In the Entry Type ID column, type BANKFEE.
4. In the Disb./Receipt column, select Disbursement.
5. In the Entry Type Description column, type Bank Fees.
6. In the Module column, make sure that CA (the default setting) is selected.
7. In the Default Offset Account column, select 61100 - Bank Service Charges.
8. On the form toolbar, click Save to save the entry type.

When you create cash accounts, you can assign this entry type to the necessary cash accounts. For details, see Cash
Management: To Create Cash Accounts.
 Implementing Basic Financials | 93

Activity Recap
In this activity, we have illustrated how to create a Disbursement entry type in the system.

Cash Management: Cash Accounts

Cash accounts are used to keep records of the outgoing and incoming payments and cash. You can create cash
accounts that represent bank accounts, amounts of cash on hand, or amounts of cash in transit. Each cash account
is linked to a general ledger account.

Configuration of Cash Accounts

In general, the configuration process of a cash account involves the following steps:
1. You determine which existing GL account the cash transactions will be recorded to, or you create a GL
account designated for this purpose.
2. You create the cash account and link it to the GL account that you decided to use for this purpose.
3. If any transactions may have been posted to the GL account before you created the cash account and linked
it to the GL account, you run validation of the cash account balance.

This configuration is enough for you to start making funds transfers between your cash accounts. To be able to
record transactions other than funds transfers (cash entry transactions and incoming and outgoing payments), you
also need to perform the following steps:
1. You configure the following entities:
• Entry types: You use entry types to classify cash transactions, so that they can be processed correctly. For
details on entry types, see Cash Management: Entry Types.
• Payment methods: You use payment methods to define the way the money is transferred into and out of
the organization. For details on payment methods, see Cash Management: Payment Methods.
2. You associate entry types and payment methods with the appropriate cash accounts.

Cash Management: To Create Cash Accounts

In this activity, you will learn how to create cash accounts in the system.

Story
Suppose that as an administrator, you need to add cash accounts to the system, as requested by the accountant of
the SweetLife company. You will create cash accounts that correspond to the following GL accounts: 10100 - Petty
Cash and 10200 - Company Checking Account.

Process Overview
In this activity, on the Cash Accounts (CA202000) form, you will create a cash account and a company checking
account to be used with this cash account.

System Preparation
Before you start creating the cash accounts, make sure that the following tasks have been performed in the system:
 Implementing Basic Financials | 94

1. The company and its actual ledger have been created, as described in Company Without Branches: To
Configure a Company Without Branches and General Ledger: To Create an Actual Ledger.
2. The cash management preference settings have been defined, as described in Cash Management: To Specify
Cash Management Preferences.
3. The entry types of cash operations has been defined in the system, as described in Cash Management: To
Create an Entry Type.

Step 1: Creating the Cash Register Account

To configure SweetLife's cash register account, do the following:
1. Sign in to the company you have prepared with the admin username.
2. Open the Cash Accounts (CA202000) form, and click Add New Record on the form toolbar.
3. In the Summary area, specify the following settings:
• Cash Account: 10100
• Account: 10100 - Petty Cash
This box holds the GL account to which this cash account is linked, so that cash transactions can be
traced in the general ledger.
• Description: SweetStore Cash Register
4. On the table toolbar of the Payment Methods tab, click Add Row.
5. In the Payment Method column, select CASH.
6. On the form toolbar, click Save.

Step 2: Creating the Company Checking Account

To configure a cash account to be used with the company checking account, do the following:
1. While you are still on the Cash Accounts (CA202000) form, click Add New Record on the form toolbar.
2. In the Summary area, specify the following settings:
• Cash Account: 10200
• Account: 10200 - Company Checking Account
• Description: Checking Account
3. On the table toolbar of the Payment Methods tab, click Add Row.
4. In the Payment Method column of the added row, select CHECK.
5. On the table toolbar of the Entry Types tab, click Add Row.
6. In the Entry Type ID column of the new row, select BANKFEE.
7. On the form toolbar, click Save.

Activity Recap
In this activity, we have illustrated the following:
1. The system administrator created a cash account for the new company and specified a payment method for
this account.
2. The system administrator created a checking account for the new company, specified a payment method for
it, and assigned an entry type to this account.
 Implementing Basic Financials | 95

Cash Management: Payment Methods

In Acumatica ERP, you can configure the payment methods that your organization uses to pay its vendors, as
well as the payment methods that are used by customers to pay your organization. The settings of the payment
methods describe how the particular payment is done and provide the default cash account to be used to record
payments.
Acumatica ERP has predefined payment methods that can be adjusted to the business needs of an organization.

Payment Method Setup

You use the Payment Methods (CA204000) form to review the predefined payment methods and update them. (You
can also define new payment methods on this form.)
On this form, you perform the following general steps to set up a payment method:
1. In the Summary area, you specify the identifier, the means of payment (Credit Card, Cash/Check, or Direct
Deposit), and the description.
2. You use the appropriate check boxes to specify how you want the payment method to be used. If the
payment method is used for customer payments, select the Use in AR check box. If the payment method is
used for payments to vendors, select the Use in AP check box.
3. On the Allowed Cash Accounts tab, you add rows for each of the cash accounts to be linked to this payment
method, and you specify the appropriate settings for each listed account. The linked cash accounts can
include regular cash accounts and clearing accounts.
4. If necessary, you modify the settings on the Settings for Use in AR and Settings for Use in AP tabs.
5. In the Summary area, you make sure that the Active check box is selected so that the payment method can
be used.

Payment Method Deactivation

On the Payment Methods (CA204000) form, you can deactivate a payment method if you do not want it to be used
for new payments.
If a payment method has been deactivated, the unreleased payments that use this payment method cannot be
processed on the Process Payments / Print Checks (AP505000) form, but they can be released. You can select an
inactive payment method in the Payment Method box on the Release Payments (AP505200) form to release the
payments that use this payment method.

Cash Management: To Modify a Payment Method

In this activity, you will learn how to set up a payment method for use in accounts receivable and accounts payable.

Story
Suppose the SweetLife company uses checks to pay for its vendor bills and to receive check payments for customer
invoices. Acting as an administrator, you will modify the CHECK payment method (which is predefined in the
system) so that it can be used in accounts receivable and accounts payable.
 Implementing Basic Financials | 96

Process Overview
In this activity, on the Payment Methods (CA204000) form, you will update the settings of the CHECK payment
method.

System Preparation
Before you start modifying any existing payment method, make sure that the following tasks have been performed
in the system:
1. The company and its actual ledger have been created, as described in Company Without Branches: To
Configure a Company Without Branches and General Ledger: To Create an Actual Ledger.
2. The cash management preference settings have been defined, as described in Cash Management: To Specify
Cash Management Preferences.
3. The cash accounts related to the payment method have been linked (in the cash account settings) to the
payment method, as described in Cash Management: To Create Cash Accounts.

Step: Setting up the CHECK Payment Method for Use in AP and AR

To make the needed changes to the CHECK payment method, which will be used in accounts payable and accounts
receivable, do the following:
1. Sign in to the company you have prepared with the admin username.
2. Open the Payment Methods (CA2040PL) form, and select the CHECK payment method. The system opens
the payment method on the Payment Methods (CA204000) form.
3. In the Summary area, select the Use in AR check box.
4. Make sure that the Use in AP check box is selected.
5. On the Allowed Cash Accounts tab, for the 10200 cash account, select the AP Default, Use in AR, and AR
Default check boxes.
Payment methods are linked to cash accounts, and you have selected the 10200 cash account as the default
one for the payment method used in accounts payable and in accounts receivable.
6. On the form toolbar, click Save.

Activity Recap
In this activity, we have illustrated how to modify a payment method that has been predefined in the system so that
it can be used in accounts payable and accounts receivable.

Cash Management: To Deactivate a Payment Method

The following activity will walk you through the process of deactivating a payment method in the system.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.
 Implementing Basic Financials | 97

Story
Suppose that the SweetLife company decided to stop using one of the payment methods for accounts payable—
FEDWIRE. Acting as an administrator, you have to deactivate this payment method in the system.

Process Overview
You deactivate a payment method on the Payment Methods (CA204000) form, to make it unavailable for selection
for new documents on entry forms.

Step: Deactivating a Payment Method

To deactivate a payment method, do the following:
1. Open the Payment Methods (CA204000) form.
2. In the Payment Method ID box, select FEDWIRE.
3. In the Summary area, clear the Active check box.
4. On the form toolbar, click Save to save your changes.

In a production environment, aer you have deactivated a payment method, you can process documents that use
this payment method on the Release Payments (AP505300) form.
 Implementing Advanced Financials | 98

Implementing Advanced Financials

This chapter describes the financial processes that you may need to configure in Acumatica ERP, depending on
your company's structure and business needs.

Allocation Rules

Handling allocations manually can be a time-consuming and error-prone process. By using Acumatica ERP, you can
create and maintain allocation rules, which define how the allocations are to be performed. You can also perform
allocations automatically based on these definitions.

Allocation Rules: General Information

In Acumatica ERP, you can create and maintain allocation rules, which define how allocations are to be performed,
and perform allocations automatically based on your definitions.

Learning Objectives
In this chapter, you will learn how to do the following:
• Configure an allocation rule that will distribute amounts based on user-defined coefficients (weight)
• Configure an allocation rule that will distribute amounts based on percentages
• Configure an allocation rule that will distribute amounts based on a dynamic ratio of the period-to-date
account balances
• Configure an allocation rule that will distribute amounts based on budget data

Applicable Scenarios
You create an allocation rule to automate the process of periodically distributing amounts posted to a particular
account–subaccount pair among different account–subaccount pairs. For example, suppose that users post
expenses in bills to one account–subaccount pair instead of splitting these expenses among multiple account–
subaccount pairs. You can create a rule to distribute such expenses.

Allocation Rule Settings

To distribute amounts, you have to configure allocation rules on the Allocations (GL204500) form. You generally
specify the following information in each allocation rule:
• The branch for which the allocation is performed (if the company has multiple branches)
• The periods when the allocation can be applied
• The methods for distributing the allocation amount to destination accounts (for details, see Allocation Rules:
Distribution Methods)
• The ledgers to be used for the allocation
• The source accounts and subaccounts
• The destination accounts and subaccounts
You can also perform allocations between multiple branches.
 Implementing Advanced Financials | 99

If the Projects feature is enabled on the Enable/Disable Features (CS100000) form, keep in mind that
the GL allocation mechanism does not support projects; it also does not support allocations to GL
accounts that are included in account groups.

Allocation Periods
You define the post periods for an allocation rule by specifying the periods in the Start Period and End Period
boxes on the Allocation tab of the Allocations (GL204500) form. The allocation rule is applied to each period of the
range defined by the start and end periods. You can leave the End Period box blank if you are not planning to stop
using the rule.
If the allocation needs to be performed every financial year for the same periods (for example, in the last period of
each year), you can set the allocation to be recurring by selecting the Recurring check box. Recurring transactions
can be run for the years aer the year of the end period.

Ledgers for Performing Allocations

On the Allocation tab of the Allocations (GL204500) form, you have to specify at least the following ledgers:
• To specify the ledger to which journal entries generated for the allocation are posted, you select this ledger
in the Allocation Ledger box.
• To specify the ledger that is used to calculate the amount to be allocated, you select this ledger in the
Source Ledger box.
If you are going to distribute amounts by a dynamic ratio, in the Base Ledger box, you can specify the ledger that is
used to calculate the proportions for distributing allocation amounts among the destination accounts. If you leave
this box empty, the ledger that is specified in the Allocation Ledger box is used for calculating proportions.

Allocation Methods
In the Allocation Method box of the Allocations (GL204500) form, you can select the method that defines how the
allocation amount should be collected from the source accounts as follows:
• If you want the period-to-date amount to be distributed during the allocation process, select By Account
PTD.
• If you want the amount that has been accumulated on accounts since the last allocation to be distributed
during the allocation process, select From Prev. GL Allocation.

Source Accounts and Subaccounts

You specify the source accounts and subaccounts of an allocation rule on the Source Accounts tab of the
Allocations (GL204500) form. You can select the source accounts by specifying each account and subaccount
individually or by specifying a group of accounts or subaccounts.
To select the source accounts and subaccounts by groups, you can use grouping masks. For details, see Allocation
Rules: Examples of Using Account and Subaccount Masks for Allocations.

Contra Accounts and Subaccounts

If you want the system to deduct allocation amounts from accounts and subaccounts that differ from the source
accounts and subaccounts, you specify contra accounts and subaccounts for each account and subaccount in the
Contra Account and Contra Subaccount columns on the Source Accounts tab of the Allocations (GL204500) form.
The source accounts and subaccounts then will be used to determine the total allocation amount, but the amount
to be distributed will be copied from the contra accounts and subaccounts.
 Implementing Advanced Financials | 100

You have to select contra accounts and subaccounts explicitly by selecting them from the list. You cannot define
grouping masks for contra accounts and subaccounts.

Limits for Allocation Amounts

The amount to be allocated is copied from all the specified source accounts (the allocation pool).
If the source accounts are specified explicitly on the Source Accounts tab of the Allocations (GL204500) form, the
individual maximum amount (Amount Limit) or a percentage of it (Percentage Limit) can be specified for each
source account. If an amount limit is specified, the account balance will be allocated completely unless it exceeds
the limit. If the account balance exceeds the limit, only the amount limit will be allocated.
If accounts are selected by a group mask, the limit amount or percent (depending on which is specified) will be the
same for each of the selected accounts.

Destination Accounts and Subaccounts

On the Destination Accounts tab of the Allocations (GL204500) form, you specify the destination accounts and
subaccounts to which the allocation amount will be distributed. In addition to specifying the destination accounts
and subaccounts, for the distribution methods that use a dynamic ratio, you can specify the base accounts and
subaccounts to be used to calculate a proportion for distributing the allocation amount among the destination
accounts. For details, see Allocation Rules: Distribution Methods.
If the Allocate Source Accounts Separately check box is selected on the Allocation tab of the Allocations form,
you can leave the accounts and subaccounts empty on the Destination Accounts tab. In this case, in the generated
transactions, the system will use the accounts and subaccounts specified on the Source Accounts tab. For details,
see Allocation Rules: Allocation Between the Same Accounts and Subaccounts.

Allocation Rules: Distribution Methods

To define how an allocation amount should be distributed among the destination accounts, you should select
a distribution method when you create an allocation rule on the Allocations (GL204500) form. Depending on the
distribution method, the allocation ratio can be fixed for destination accounts or can be calculated dynamically by
period-to-date (PTD) or year-to-date (YTD) balances of the base or destination accounts.
In this topic, you will read about distribution methods based on fixed and dynamic ratios.

Methods Based on a Fixed Distribution Ratio

To distribute amounts by a fixed ratio, you select the distribution method in the Distribution Method box on the
Allocation tab of the Allocations (GL204500) form as follows:
• To distribute the source amount by percentages, you select By Percent. You then specify the percent that is
distributed to each account–subaccount pair in the Weight/Percent column of the Destination Accounts
tab. The percents you specify must equal 100 percent.
• To distribute the source amount by user-defined coefficients, you select By Weight. You then have to
specify the ratio that is distributed to each account–subaccount pair in the Weight/Percent column of the
Destination Accounts tab. You can use any numbers to define a ratio.

Methods Based on a Dynamic Distribution Ratio

To distribute amounts by a dynamic ratio, you select the distribution method in the Distribution Method box on
the Allocation tab of the Allocations (GL204500) form as follows:
• To distribute the source amount proportionally to year-to-date balances, you select By Dest. Account YTD.
 Implementing Advanced Financials | 101

• To distribute the source amount proportionally to period-to-date balances, you select By Dest. Account PTD.
For these methods, you specify ledgers, accounts (and subaccounts, if they are used in your system), and branches
as follows:
• To distribute the allocation amount proportionally to the balances of accounts (and subaccounts) in a
ledger that differs from the selected allocation ledger, you specify the ledger in the Base Ledger box on the
Allocation tab. On the Destination Accounts tab, you then have to specify the accounts (and subaccounts)
whose balances (which are posted to the base ledger under the base branches) should be used to calculate
the proportion for distributing the allocation amount among the destination accounts of the destination
branches.
• To distribute the allocation amount proportionally to the account balances in the ledger that is specified in
the Allocation Ledger box, the Base Ledger box should be le empty.
• To distribute the allocation amount proportionally to the balances of accounts (and subaccounts) of
the destination accounts in the allocation ledger, you do not need to specify the base branch, ledger, or
accounts.

Allocation Rules: Examples of Using Account and Subaccount Masks for Allocations

When you create an allocation rule on the Allocations (GL204500) form, you need to specify the source accounts
(and subaccounts, if applicable) from which amounts will be distributed, and the destination accounts (and
subaccounts) to which amounts will be distributed. To select the source accounts and subaccounts by groups, you
can use grouping masks.

Examples of Allocation Masks

Suppose that all the accounts have five-character identifiers, and all the marketing expense accounts start with 51.
By entering (51___) in the Account column, you can select the accounts 51001, 51022, 51135, and so on.
As another example, suppose that subaccounts are segmented in the following way: a two-letter country code (US,
FR, and DE), a two-letter department code (AD, PR, SL, DV, and DP), and a three-letter product code (001,002, ... 237).
By specifying only US for the first segment (with the mask US-__-___) in the Subaccount column, you can select
all of the following subaccounts related to operations in the United States:
• US-AD-001 through US-AD-237
• US-PR-001 through US-PR-237
• US-SL-001 through US-SL-237
• US-DV-001 through US-DV-237
• US-DP-001 through US-DP-237
If you want to specify only some of the characters in a specific segment, you can type ? in the other positions of
the segment. For example, if you enter __/D?/155 in the Subaccount column, the system will select all of the
following subaccounts:
• US-DV-155 and US-DP-155
• FR-DV-155 and FR-DP-155
• DE-DV-155 and DE-DP-155

Allocation Rules: Multilevel Allocations

An allocation can be a part of a multilevel allocation, with the same accounts and subaccounts involved in different
allocations as source and destination accounts and subaccounts. In this case, the order in which the allocations
 Implementing Advanced Financials | 102

are performed is important. In Acumatica ERP, multilevel allocation can be performed as a sequence of allocations
with a fixed order of allocations.

Multilevel Allocation Settings

You can assign the appropriate order value to each allocation in the Sort Order box on the Allocation tab of the
Allocations (GL204500) form. The allocation with the lowest value is applied first, so a 1 indicates first priority, a 2
indicates second priority, and so on.

If you select and try to process an allocation with a higher sort order value (which indicates a lower
priority) when an allocation with a lower sort order value (which indicates a higher priority and earlier
processing) has not been processed, the system will display an error and will not process the selected
allocation.

Allocation Rules: Interbranch Allocations

You can perform allocations among accounts of different companies or branches. For each allocation, in the
Summary area of the Allocations (GL204500) form, you should select the company or branch to which the allocation
transaction is related. For each account involved in allocation, you then select a company or branch on the Source
Accounts and Destination Accounts tabs.

For an allocation that distributes amounts among different companies, branches of different
companies, or branches of a company for which the With Branches Requiring Balancing type is
selected on the Companies (CS101500) form, consider configuring rules to automatically balance
intercompany or interbranch transactions. For details, see the Interbranch Account Mapping chapter.

Allocation Rules: Allocation Between the Same Accounts and Subaccounts

If you need to apply the same allocation rule to different accounts and subaccounts, you do not need to create an
allocation rule for each account–subaccount pair. When creating an allocation rule on the Allocations (GL204500)
form, you can select the Allocate Source Accounts Separately check box on the Allocation tab for the new rule.
With this check box selected, empty values can be le in the Account and Subaccount columns on the Destination
Accounts tab.
For allocation rules that have this check box is selected, the system behavior on the Allocations form will be the
following:
• For each line on the Source Accounts tab, the system will define a list of related account–subaccount pairs
with their amounts. The amount of each account–subaccount pair will be distributed based on the account–
subaccount pairs listed on the Destination Accounts tab. The Account column for a transaction will be filled
in as follows:
• If the Account column on the Destination Accounts tab is filled in with a value, this account will be
copied to the transaction.
• If the Account column on the Destination Accounts tab is empty, the account from the account–
subaccount pair on the Source Accounts tab will be copied to the transaction.
• The Subaccount column for a transaction will be filled in as follows:
• If a line on the Destination Accounts tab has a segment in the Subaccount column filled in with a value,
this segment value will be copied to the transaction.
• If a line on the Destination Accounts tab has an empty segment in the Subaccount column, the segment
value from the account–subaccount pair on the Source Accounts tab will be copied to the transaction.
 Implementing Advanced Financials | 103

Because the structure of the SUBACCOUNT segmented key can be changed on the Segmented Keys
(CS202000) form when no segment values have been entered yet, it is possible to change this
structure aer allocations have been created. In this case, you need to manually update allocation
rules on the Allocations form.

Example
Suppose that the Allocate Source Accounts Separately check box is selected and By Percent is specified in
the Distribution Method box on the Allocations (GL204500) form. The following accounts and subaccounts are
specified on the Source Accounts tab:

Account Subaccount

60001 110-000

60001 120-000

60002 110-000

60002 120-000

The following accounts, subaccounts, and weight are specified on the Destination Accounts tab:

Account Subaccount Weight/Percent

Empty Empty-500 20%

Empty Empty-510 80%

With this allocation rule, for the first account–subaccount pair and a transaction with the amount of $100.00, the
system will perform allocations on the Run Allocations (GL504500) form and will generate the following transaction:

Account Subaccount Debit Credit

60001 110-000 00.00 100.00

60001 110-500 20.00 00.00

60001 110-510 80.00 00.00

For the second account–subaccount pair and a transaction with the amount of $100.00, the system will generate
the following transaction:

Account Subaccount Debit Credit

60002 110-000 00.00 100.00

60002 110-500 20.00 00.00

60002 110-510 80.00 00.00

 Implementing Advanced Financials | 104

Allocation Rules: Implementation Checklist

The following tables provide details that you can use to ensure that the system is configured properly for the
creation of allocation rules.

Form Things to Check Notes

Enable/Disable Features (CS100000) Make sure that the Standard Finan-  

form cials and General Ledger Allocation
Templates (under Advanced Finan-
cials) features have been enabled.

Multiple forms Make sure that the minimum con-  

figuration of the company has been
performed and the general ledger
functionality has been implement-
ed, as described in Company With-
out Branches: General Information
Company with Branches that Do Not
Require Balancing: General Informa-
tion, and General Ledger: General
Information.

Ledgers (GL201500) form Make sure that the ledgers used for  
allocations have been created.

Chart of Accounts (GL202500) form Check whether the necessary ac-  

counts have been created, and cre-
ate them if not.

Additional Configuration to Confirm

If your company uses subaccounts, the subaccounts have to be configured, as described in Subaccounts:
Implementation Activity.

Allocation Rules: To Create an Allocation Rule That Uses a Fixed Ratio (Weight)

In this activity, you will learn how to create an allocation rule in which a user-defined coefficient is used to
distribute amounts among accounts and subaccounts.

Story
Suppose that the HEADOFFICE branch pays all advertising bills that the SweetLife Fruits & Jams company receives.
At the end of each month, the accountant of the HEADOFFICE branch needs to distribute the advertising expenses
between the HEADOFFICE, RETAIL, and SWEETEQUIP branches by using the fixed ratio 5:1:1.
Acting as an administrator, you need to define an allocation rule that will distribute the bill amount.
 Implementing Advanced Financials | 105

Configuration Overview
For the purposes of this activity, the Subaccounts feature has been enabled on the Enable/Disable Features
(CS100000) form. On the Segmented Keys (CS202000) form, the SUBACCOUNT segmented key has been defined
according to the company's business needs. For details, see Subaccounts: Implementation Activity.

Process Overview
In this activity, on the Allocations (GL204500) form (the Allocation tab), you will specify the general settings for an
allocation rule. Then, on the Source Accounts and Destination Accounts tabs of this form, you will specify the
accounts and subaccounts for the rule.

System Preparation
Before you start configuring the allocation rule, you need to sign in to a tenant with the U100 dataset preloaded.
Sign in as an administrator by using the following credentials:
• Username: gibbs
• Password: 123

Step 1: Specifying General Settings for an Allocation Rule That Distributes by Weight
To begin creating an allocation rule that distributes amounts by weight, do the following:
1. Open the Allocations (GL204500) form.
2. On the form toolbar, click Add New Record.
3. In the Description box of the Summary area, type Advertising expenses.
4. In the Branch box, select HEADOFFICE.
5. On the Allocation tab, in the Start Period box, select 01-2023.
6. Leave the End Period box empty.
7. Clear the Recurring check box.
8. In the Allocation Method box, make sure the By Account PTD option is selected.
The period-to-date amount will be distributed during the allocation process.
9. In the Distribution Method box, select By Weight.
With this option selected, you have to specify the ratio that is distributed to each account–subaccount pair.
10.In the Allocation Ledger box, select ACTUAL.
11.In the Source Ledger box, select ACTUAL.
12.In the Last Revision Date box, leave the current date, which the system has inserted by default.

You have specified the general settings for the allocation rule. You will now proceed to specifying source and
destination accounts and subaccounts for the rule.

Step 2: Specifying Accounts and Subaccounts for the Allocation Rule

To specify the accounts and subaccounts for the rule, while remaining on the Allocations (GL204500) form, do the
following:
 Implementing Advanced Financials | 106

1. To specify the source account from which the allocated amount will be deducted (which in this case is the
Advertising Expense account of the head office), on the Source Accounts tab, click Add Row, and specify the
following settings in the row:
• Branch: HEADOFFICE
• Account: 61000
• Subaccount: 000-000
• Percentage Limit: 100.00
This indicates that the full amount will be distributed during the allocation process.
2. To specify the first destination account–subaccount pair to which the amount will be allocated (for the head
office branch), on the Destination Accounts tab, click Add Row, and specify the following settings in the
added row:
• Branch: HEADOFFICE
• Account: 61000
• Subaccount: 000-000
• Weight/Percent: 5
3. To specify the second destination account–subaccount pair to which the amount will be allocated (for the
retail store branch), click Add Row, and specify the following settings in the added row:
• Branch: RETAIL
• Account: 61000
• Subaccount: 000-000
• Weight/Percent: 1
4. To specify the third destination account–subaccount pair to which the amount will be allocated (for the
equipment sales center branch), click Add Row, and specify the following settings in the added row:
• Branch: SWEETEQUIP
• Account: 61000
• Subaccount: 000-000
• Weight/Percent: 1
5. Click Save on the form toolbar.

You have defined a rule that will distribute the amount posted to the Advertising Expense account of the head office
branch among all three branches in the system.

Allocation Rules: To Create an Allocation Rule That Uses a Fixed Ratio (Percentage)

In this activity, you will learn how to create an allocation rule in which a percentage is used to distribute amounts
among accounts and subaccounts.

Story
Suppose that the RETAIL and SWEETEQUIP branches of the SweetLife Fruits & Jams company do not have finance
departments. Accountants of the HEADOFFICE branch are responsible for preparing the financial statements, paying
bills, billing customers, and performing similar tasks. At the end of each month, the salaries of the HEADOFFICE
finance department should be distributed between the HEADOFFICE, RETAIL, and SWEETEQUIP branches with the
following percentages: 50%, 15%, and 35%.
Acting as an administrator, you need to define an allocation rule that will distribute the posted amount for the
Finance department between these three branches.
 Implementing Advanced Financials | 107

Configuration Overview
For the purposes of this activity, the Subaccounts feature has been enabled on the Enable/Disable Features
(CS100000) form. On the Segmented Keys (CS202000) form, the SUBACCOUNT segmented key has been defined
according to the company's business needs. For details, see Subaccounts: Implementation Activity.

Process Overview
On the Allocations (GL204500) form (the Allocation tab), you will specify the general settings for an allocation rule.
Then, on the Source Accounts and Destination Accounts tabs of this form, you will specify the accounts and
subaccounts for the rule.

System Preparation
Before you start configuring the allocation rule, you need to sign in to a tenant with the U100 dataset preloaded.
Sign in as an administrator by using the following credentials:
• Username: gibbs
• Password: 123

Step 1: Specifying General Settings for an Allocation Rule That Uses Percentages
To begin creating an allocation rule that distributes amounts by percentages, do the following:
1. Open the Allocations (GL204500) form.
2. On the form toolbar, click Add New Record.
3. In the Description box of the Summary area, type Salaries for the Finance department.
4. In the Branch box, select HEADOFFICE.
5. On the Allocation tab, in the Start Period box, select 01-2023.
6. Leave the End Period box empty.
7. Clear the Recurring check box.
8. In the Allocation Method box, make sure the By Account PTD option is selected.
The period-to-date amount will be distributed during the allocation process.
9. In the Distribution Method box, select By Percent.
With this option selected, you have to specify the percent that is distributed to each account–subaccount
pair.
10.In the Allocation Ledger box, select ACTUAL.
11.In the Source Ledger box, select ACTUAL.
12.In the Last Revision Date box, leave the current date, which the system has inserted by default.

You have specified the general settings for the allocation rule; you will now proceed to specifying source and
destination accounts and subaccounts for the rule.

Step 2: Specifying Accounts and Subaccounts for the Allocation Rule

To specify the accounts for the rule, while remaining on the Allocations (GL204500) form, do the following:
 Implementing Advanced Financials | 108

1. To specify the source account from which the allocated amount will be deducted (which in this case is the
salaries and wages account of the head office), on the Source Accounts tab, click Add Row, and specify the
following settings in the added row:
• Branch: HEADOFFICE
• Account: 69500
• Subaccount: 000-FIN
• Percentage Limit: 100.00
This indicates that the full amount will be distributed during the allocation process.
2. To specify the first destination account–subaccount pair to which the amount will be allocated (for the head
office branch), on the Destination Accounts tab, click Add Row, and specify the following settings in the
added row:
• Branch: HEADOFFICE
• Account: 69500
• Subaccount: 000-FIN
• Weight/Percent: 50
3. To specify the second destination account–subaccount pair to which the amount will be allocated (for the
retail store branch), click Add Row, and specify the following settings in the added row:
• Branch: RETAIL
• Account: 69500
• Subaccount: 000-FIN
• Weight/Percent: 15
4. To specify the third destination account–subaccount pair to which the amount will be allocated (for the
equipment sales center branch), click Add Row, and specify the following settings in the added row:
• Branch: SWEETEQUIP
• Account: 69500
• Subaccount: 000-FIN
• Weight/Percent: 35
5. Click Save on the form toolbar.

You have defined a rule that will distribute the amount posted to the salaries and wages account of the head office
branch for the Finance department among the three branches in the system.

Allocation Rules: To Create an Allocation Rule That Uses a Dynamic Ratio of the
Period-to-Date Account Balances

In this activity, you will learn how to create an allocation rule in which a dynamic ratio is used to distribute amounts
among accounts and subaccounts.

Story
Suppose that accountants of the HEADOFFICE branch post rent expenses to the 000-000 subaccount to speed up
data entry. At the end of each month, they split the rent expenses by departments based on the head count.
Acting as an administrator, you need to define an allocation rule that will distribute the posted amount between
the departments based on the head count.
 Implementing Advanced Financials | 109

Configuration Overview
For the purposes of this activity, the Subaccounts feature has been enabled on the Enable/Disable Features
(CS100000) form. On the Segmented Keys (CS202000) form, the SUBACCOUNT segmented key has been defined
according to the company's business needs. For details, see Subaccounts: Implementation Activity.

Process Overview
On the Allocations (GL204500) form (the Allocation tab), you will specify the general settings for an allocation rule.
Then, on the Source Accounts and Destination Accounts tabs of this form, you will specify the accounts and
subaccounts for the rule.

System Preparation
Before you start configuring the allocation rule, you need to sign in to a tenant with the U100 dataset preloaded.
Sign in as an administrator by using the following credentials:
• Username: gibbs
• Password: 123

Step 1: Specifying General Settings for an Allocation Rule That Uses a Dynamic Ratio
To begin creating an allocation rule that distributes amounts by using a dynamic ratio, do the following:
1. Open the Allocations (GL204500) form.
2. On the form toolbar, click Add New Record.
3. In the Description box of the Summary area, type Rent expenses.
4. In the Branch box, select HEADOFFICE.
5. On the Allocation tab, in the Start Period box, select 01-2023.
6. Leave the End Period box empty.
7. Clear the Recurring check box.
8. In the Allocation Method box, make sure the By Account PTD option is selected.
9. In the Distribution Method box, select By Dest. Account PTD.
The source amount will be distributed proportionally to the period-to-date balances. When you select this
option, the Base Ledger box becomes available.
10.In the Allocation Ledger box, select ACTUAL.
11.In the Source Ledger box, select ACTUAL.
12.In the Base Ledger box, select HEADCOUNT.
The base ledger is the ledger from which the allocation proportions are calculated. You can take the
proportions from an actual, budget, or statistical ledger. To calculate the proportions, the system uses
the amounts from the base accounts specified on the Destination Accounts tab. If the Base Ledger box is
empty, the system calculates the proportions from the amounts in the allocation ledger.
13.Make sure that the Allocate Source Accounts Separately check box is cleared.
14.In the Last Revision Date box, leave the current date, which the system has inserted by default.

You have specified the general settings for the allocation rule, and you will now proceed to specifying source and
destination accounts and subaccounts for the rule.
 Implementing Advanced Financials | 110

Step 2: Specifying Accounts and Subaccounts for the Allocation Rule

To specify the accounts for the rule, while remaining on the Allocations (GL204500) form, do the following:
1. To specify the source account from which the allocated amount will be deducted (which in this case is the
rent or lease expense account of the head office), on the Source Accounts tab, click Add Row, and specify
the following settings in the added row:
• Branch: HEADOFFICE
• Account: 62900
• Subaccount: 000-000
• Percentage Limit: 100.00
2. To specify the first destination account–subaccount pair to which the amount will be allocated (for the
Finance department), on the Destination Accounts tab, click Add Row, and specify the following settings in
the added row:
• Branch: HEADOFFICE
• Account: 62900
• Subaccount: 000-FIN
• Base Branch: HEADOFFICE
• Base Account: 69500
• Base Subaccount: 000-FIN
3. To specify the second destination account–subaccount pair to which the amount will be allocated (for the
Marketing department), click Add Row, and specify the following settings in the added row:
• Branch: HEADOFFICE
• Account: 62900
• Subaccount: 000-MKT
• Base Branch: HEADOFFICE
• Base Account: 69500
• Base Subaccount: 000-MKT
4. To specify the third destination account–subaccount pair to which the amount will be allocated (for the
Operations department), click Add Row, and specify the following settings in the added row:
• Branch: HEADOFFICE
• Account: 62900
• Subaccount: 000-OPS
• Base Branch: HEADOFFICE
• Base Account: 69500
• Base Subaccount: 000-OPS
5. To specify the fourth destination account–subaccount pair to which the amount will be allocated (for the
Sales department), click Add Row, and specify the following settings in the added row:
• Branch: HEADOFFICE
• Account: 62900
• Subaccount: 000-SLS
• Base Branch: HEADOFFICE
• Base Account: 69500
• Base Subaccount: 000-SLS
6. Click Save on the form toolbar.
 Implementing Advanced Financials | 111

You have defined a rule that will distribute the amount posted to the Rent Expense account of the head office
branch among the departments based on the head count.

Allocation Rules: To Create an Allocation Rule Based on Budget Data

In this activity, you will learn how to create an allocation rule in which amounts are distributed based on budget
data among accounts and subaccounts.

Story
Suppose that the SweetLife Fruits & Jams company pays the Christmas bonus to its employees. The amount
budgeted for the 2023 bonus is $18,000.00. At the end of each period, an accountant needs to accrue the budgeted
bonus expenses for each department proportionally to the monthly salary.
Acting as an administrator, you need to define an allocation rule based on budget data.

Configuration Overview
For the purposes of this activity, the Subaccounts feature has been enabled on the Enable/Disable Features
(CS100000) form. On the Segmented Keys (CS202000) form, the SUBACCOUNT segmented key has been defined
according to the company's business needs. For details, see Subaccounts: Implementation Activity.
On the Budgets (GL302010) form, the BUDGET ledger has been created as described in Budget Ledger:
Implementation Activity.

Process Overview
On the Allocations (GL204500) form (the Allocation tab), you will specify the general settings for an allocation rule.
Then, on the Source Accounts and Destination Accounts tabs of this form, you will specify the accounts and
subaccounts for the rule.

System Preparation
Before you start configuring the allocation rule, you need to sign in to a tenant with the U100 dataset preloaded.
Sign in as an administrator by using the following credentials:
• Username: gibbs
• Password: 123

Step 1: Specifying General Settings for an Allocation Rule Based on Budget Data
To begin creating an allocation rule that distributes amounts based on budget data, do the following:
1. Open the Allocations (GL204500) form.
2. On the form toolbar, click Add New Record.
3. In the Description box of the Summary area, type Christmas bonus.
4. In the Branch box, select HEADOFFICE.
5. On the Allocation tab, in the Start Period box, select 01-2023.
6. Leave the End Period box empty.
7. Clear the Recurring check box.
You have cleared the check box because the allocation rule needs to be used only in 2023.
 Implementing Advanced Financials | 112

8. In the Allocation Method box, make sure the By Account PTD option is selected.
The source amount is a period-to-date amount.
9. In the Distribution Method box, select By Dest. Account PTD.
The source amount will be distributed proportionally to the period-to-date balances. When you select this
option, the Base Ledger box becomes available.
10.In the Allocation Ledger box, select ACTUAL.
11.In the Source Ledger box, select BUDGET.
12.In the Base Ledger box, select ACTUAL.
The proportions will be calculated based on the ACTUAL ledger.
13.Make sure that the Allocate Source Accounts Separately check box is cleared.
14.In the Last Revision Date box, leave the current date, which the system has inserted by default.

You have specified the general settings for the allocation rule; you will now proceed to specifying source and
destination accounts and subaccounts for the rule.

Step 2: Specifying Accounts and Subaccounts for the Allocation Rule

To specify the accounts for the rule, while remaining on the Allocations (GL204500) form, do the following:
1. To specify the source account from which the allocated amount will be deducted, on the Source Accounts
tab, click Add Row, and specify the following settings in the added row:
• Branch: HEADOFFICE
• Account: 69550
• Subaccount: 000-000
• Contra Account: 20050
• Contra Subaccount: 000-000
• Percentage Limit: 100.00
This setting indicates that the full amount will be distributed during the allocation process.
2. To specify the first destination account–subaccount pair to which the amount will be allocated, on the
Destination Accounts tab, click Add Row, and specify the following settings in the added row:
• Branch: HEADOFFICE
• Account: 69550
• Subaccount: 000-FIN
• Base Branch: HEADOFFICE
• Base Account: 69500
• Base Subaccount: 000-FIN
3. To specify the second destination account–subaccount pair to which the amount will be allocated, click Add
Row, and specify following settings in the added row:
• Branch: HEADOFFICE
• Account: 69550
• Subaccount: 000-MKT
• Base Branch: HEADOFFICE
• Base Account: 69500
• Base Subaccount: 000-MKT
4. To specify the third destination account–subaccount pair to which the amount will be allocated, click Add
Row, and specify the following settings in the added row:
 Implementing Advanced Financials | 113

• Branch: HEADOFFICE
• Account: 69550
• Subaccount: 000-OPS
• Base Branch: HEADOFFICE
• Base Account: 69500
• Base Subaccount: 000-OPS
5. To specify the fourth destination account–subaccount pair to which the amount will be allocated, click Add
Row, and specify the following settings in the added row:
• Branch: HEADOFFICE
• Account: 69550
• Subaccount: 000-SLS
• Base Branch: HEADOFFICE
• Base Account: 69500
• Base Subaccount: 000-SLS
6. Click Save on the form toolbar.

Automatically Combined Subaccounts

In Acumatica ERP, you can use automatically combined subaccounts for documents, with the system inserting the
automatically combined subaccounts by default in document lines, to speed up data entry and reduce possible
errors. To do so, you need to specify the subaccount masks that the system will use to combine the subaccounts for
documents, based on the way your company wants to structure subaccounts and track costs.
In this chapter, you will find general information about the configuration of combined subaccounts, an example of
this configuration, and activities that will walk you through the processes of configuring combined subaccounts for
particular types of documents.

Combined Subaccounts: General Information

With the combined subaccount functionality provided by Acumatica ERP, you can define masks the system uses to
form a combined subaccount from multiple subaccounts to track costs more specifically.
When a user enters a document, such as a vendor bill or a customer invoice, into the system, multiple subaccounts
are involved, such as the subaccount associated with the product being purchased or sold in each line, the
subaccount associated with the employee entering the document, and the subaccount associated with the vendor
or customer involved. If you have configured the combined subaccount functionality, the system will insert a
particular subaccount that is a combination of the involved subaccounts that you have specified—during this
configuration, you specify the masks that the system uses to compose new subaccount identifiers by using the
segment values of each of the specified subaccounts.

Learning Objectives
In this chapter, you will learn how to specify combined subaccount masks for different types of documents.
 Implementing Advanced Financials | 114

Applicable Scenarios
If subaccounts have been configured in your system, you can speed up entry of subaccounts by setting up the
combined subaccount functionality for the following types of documents where the combined subaccounts will be
inserted into the appropriate columns on the following forms for the following document types:

Document type Forms and UI elements where subaccounts will be used

AP documents Bills and Adjustments (AP301000): Details tab, Subaccount column

AR documents Invoices and Memos (AR301000): Details tab, Subaccount column

Inventory transactions Stock Items (IN202500): GL Accounts tab

Item Warehouse Details (IN204500): General tab, Inventory Sub. box

Invoices prepared for sales orders Invoices (SO303000): Details tab, Subaccount column

Bills prepared for purchase orders Bills and Adjustments (AP301000): Details tab, Subaccount column

Expense claims and expense receipts Expense Claim (EP301000): Details tab, Expense Sub. box

Expense Receipt (EP301020): Details tab, Expense Sub. box

Project transactions Project Transactions (PM304000): Details tab, Debit Subaccount and
Credit Subaccount columns

Configuration of Combined Subaccounts

For each type of documents for which you want to configure the combined subaccount functionality, you specify
the subaccount mask in the appropriate box on the Acumatica ERP form with the preference settings for that
functionality. For example, to specify the combined expense subaccount to be used for AP document lines, you
enter the mask in the Combine Expense Sub. From box on the Accounts Payable Preferences (AP101000) form.

If the Inventory and Order Management group of features is enabled on the Enable/Disable Features
(CS100000) form, you instead specify the combined subaccounts on the Posting Classes (IN206000)
form for the inventory transactions, sales orders, and purchase orders. It is also possible to specify a
mask for sales, freight, and discount subaccounts on the Order Types (SO201000) form.

In a box for a combined subaccount, you enter a subaccount mask, such as EEE-EEE, in accordance with the
segmented structure of subaccounts defined in the company. You specify the rule the system uses for selecting the
values for the segments of a combined subaccount from the subaccounts involved.

For smooth implementation of the configuration of automatically combined subaccounts, we

recommend that you select the By Segment: All Avail. Segment Values lookup mode in the Lookup
Mode box for the SUBACCOUNT segmented key on the Segmented Keys (CS202000) form, so that the
system can generate valid subaccounts segment by segment. Otherwise, all the subaccounts that may
result from combining segments from multiple sources must be predefined in the system—that is,
added to the list of valid subaccounts on the Subaccounts (GL203000) form.

To enter a rule for combined subaccounts, you can select one of the following options (the available options in a
particular list vary depending on the document type) for each segment of the subaccount mask to indicate what
subaccount is used as a source for this segment:
 Implementing Advanced Financials | 115

• C: The subaccount associated with the company branch

• E: The subaccount associated with the employee
• I: The subaccount associated with the stock or non-stock item
• J: The subaccount associated with the project
• L: The subaccount associated with the customer location or vendor location
• P: The subaccount associated with the posting class
• S: The subaccount associated with the salesperson
• T: The subaccount associated with the project task
• W: The subaccount associated with the warehouse
Within a segment, you repeat the character designating the option as many times as there are characters in the
segment. For example, you use CCCC, EEEE, IIII, or LLLL for a four-character segment, and CC, EE, II, or LL for a two-
character segment. Then in the Combine Expense Sub. From box on the Accounts Payable Preferences (AP101000)
form, you might type LLLL-CCC. This setting indicates that the system will use the vendor location as the source for
the first segment and the company branch as the source for the second segment.

Combined Subaccounts: Configuration Prerequisites

Before you start to specify subaccount masks, you must be sure that the system has been configured properly, as
described in the following sections.

Enabling the Needed Features

On the Enable/Disable Features (CS100000) form, the minimum set of features and the Subaccounts feature have to
be enabled.

Configuring the System

You need to make sure that the following implementation tasks have been performed in Acumatica ERP before you
begin specifying subaccount masks:
• On the Companies (CS101500) form, the companies of the organization have been configured, and
the appropriate actual ledger has been assigned to each company. For more information on creating
companies, see one of the following topics: Company Without Branches: To Configure a Company Without
Branches Company with Branches that Do Not Require Balancing: Implementation Activity, or Company with
Branches that Require Balancing: Implementation Activity. For details on creating an actual ledger, see General
Ledger: To Create an Actual Ledger.
• On the Segmented Keys (CS202000) and Segment Values (CS203000) forms, the structure of the
SUBACCOUNT segmented key and the lists of possible segment values, respectively, have been specified. For
more information, see Subaccounts: Implementation Activity.
• On the Chart of Accounts (GL202500) form, the appropriate accounts need to be specified for all needed
system functionality for which combined subaccounts will be configured. For more information, see General
Ledger: To Create a Chart of Accounts.
• On the General Ledger Preferences (GL102000) form, the preference settings for the general ledger
functionality have been specified. For details, see General Ledger: To Specify General Ledger Preferences.
• If combined subaccounts will be configured for AR documents, on the Accounts Receivable Preferences
(AR101000) form, the preference settings for the accounts receivable functionality have been specified. For
details, see Accounts Receivable: To Specify Accounts Receivable Preferences.
• If combined subaccounts will be configured for AP documents, on the Accounts Payable Preferences
(AP101000) form, the preference settings for the accounts receivable functionality have been specified. For
details, see Accounts Receivable: To Specify Accounts Receivable Preferences.
 Implementing Advanced Financials | 116

• If combined subaccounts will be configured for AP documents, on the Accounts Payable Preferences
(AP101000) form, the preference settings for the accounts receivable functionality have been specified. For
details, see Accounts Receivable: To Specify Accounts Receivable Preferences.

Combined Subaccounts: Example of a Subaccount Structure

This topic presents an example of a structure a company plans to use to structure its subaccounts. If you have not
yet determined the structure your company will use, it may give you ideas about a structure that would provide
information your company can use to make business decisions. This example also demonstrates how one of the
subaccount masks can be defined based upon the subaccount structure.

Defining the Subaccount Structure

Suppose that the North Serpent company uses the XX-XX-XXXX subaccount structure, with the segments used as
follows:
1. XX: A segment designating the applicable branch. Possible values are MN (a branch on Main Street), BW (a
branch on Broadway Street), CA (a branch on California Street), and 00 (the branch is not applicable).
2. XX: A segment designating the product line. Possible values are B1, B2, B3, and 00 (no product line is
applicable).
3. XXXX: A segment to specify the department involved. Possible values are DEVP, PRDC, and 0000 (a non-
specific value indicating that no department is involved).

Defining the Subaccount Masks

Further suppose that the company buys specific services required for the B1 product line from the vendor Dekatlon
Inc. The company's default expense subaccounts involved in this transaction (which have been specified for the
applicable entities in Acumatica ERP) are listed below, along with the characters used to designate the respective
subaccount or a segment of the subaccount in the subaccount mask:
• 00-B1-PRDC: For the vendor location (L)
• BW-00-DEVP: For the employee monitoring the services provided by the vendors (E)
• CA-00-0000: For the company's receiving branch (C)
• 00-B1-0000: For the non-stock item featuring the service provided (I)
In the Combine Expense Sub. from box on the Accounts Payable Preferences (AP101000) form, the combined
subaccount would be specified as follows: EE-II-LLLL. Here, EE means that the value for the first segment is copied
from the first segment of the default subaccount associated with the employee. II means that the value for the
second segment is copied from the second segment of the default subaccount associated with the inventory item.
LLLL means that the value for the third segment is copied from the third segment of the subaccount associated with
the vendor's default location.
The resulting subaccount is BW-B1-PRDC. For the particular line of the AP bill for the purchase of these services
from this vendor—that is, the Subaccounts column of the Details tab on the Bills and Adjustments (AP301000) form
—the system inserts the automatically combined subaccount of BW-B1-PRDC.

Combined Subaccounts: To Define a Subaccount Mask for AR Documents

In this activity, you will learn how to configure automatically combined subaccounts in accounts receivable
documents. You do this by defining a subaccount mask in the accounts receivable preferences and by specifying
subaccounts for the needed entities.
 Implementing Advanced Financials | 117

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that you need to configure the combined subaccounts to be used in customer documents, to speed
up their processing. Acting as an administrator, you have to specify the subaccount mask that will be used for
these documents, and then specify the sales subaccount for some of the source records. The first segment of the
subaccount should be taken from the non-stock item selected in the document line. The second segment should be
taken from the customer selected in the document.

System Preparation
Before you start to specify a subaccount mask, in a tenant with the U100 dataset preloaded, be sure subaccounts
have been configured to be used in the system, as described in Subaccounts: Implementation Activity. This
configuration involves enabling the appropriate feature to use subaccounts, defining the structure of subaccounts,
and specifying the values for subaccount segments in the system.

Step 1: Defining the Mask for Combined Subaccounts in AR Documents

To define the subaccount mask in the accounts receivable preferences, do the following:
1. Sign in to the company you have prepared with the admin username.
2. Open the Accounts Receivable Preferences (AR101000) form.
3. Click in the Combine Sales Sub. From box of the General Settings tab (Data Entry Settings section), point
at the first segment, and press F3.
The lookup box opens with the possible options that can be selected.
4. Select III for the first segment.
This directs the system to take the first segment from a non-stock item.
5. For the second segment, make sure LLL is selected.
This directs the system to take the second segment of the combined subaccount from a customer account.
6. Click Save on the form toolbar.

Step 2: Specifying the Sales Subaccount for Non-Stock Items

For the OFLCOURSE and ONLCOURSE non-stock items, you will specify the sales subaccount, which the system will
use to form the combined subaccount when that item is selected in a document. (In a production system, you
would specify the appropriate sales subaccount for all stock and non-stock items.) To specify the sales subaccount
for the non-stock items, do the following:
1. Open the Non-Stock Items (IN202000) form.
2. In the Inventory ID box of the Summary area, select OFLCOURSE.
3. On the GL Accounts tab, in the Sales Sub. box, specify NSS-000.
4. On the form toolbar, click Save.
5. Repeat Instructions 2 through 4 for the ONLCOURSE non-stock item.
 Implementing Advanced Financials | 118

Step 3: Specifying the Sales Subaccount for Customers

For the COFFEESHOP, GOODFOOD, and HMBAKERY customers, you will specify the sales subaccount, which the
system will use to form the combined subaccount if the customer is selected in a document. (In a production
system, you would specify the appropriate sales subaccount for all customers.) To specify the sales subaccount for
customers, do the following:
1. Open the Customers (AR303000) form.
2. In the Customer ID box, select COFFEESHOP.
3. On the GL Accounts tab, in the Sales Sub. box, specify 000-SLS.
4. On the form toolbar, click Save.
5. Repeat Instructions 2 through 4 for the GOODFOOD and HMBAKERY customers.

Combined Subaccounts: To Define a Subaccount Mask for AP Documents

In this activity, you will learn how to configure automatically combined subaccounts in accounts payable
documents. You do this by defining a subaccount mask in the accounts payable preference settings and by
specifying subaccounts for the needed entities.

Story
Suppose that accountants of the SweetLife Fruits & Jams company need to have combined subaccounts configured
in the system to be used in vendor documents, to speed up their processing.
Acting as an administrator, you have to specify the subaccount mask that will be used for these documents, and
then specify the expense subaccount for some of the source records. The first segment of the subaccount should
be copied from the non-stock item selected in the document line. The second segment should be copied from the
employee who is the owner or creator of the document.

Configuration Overview
For the purposes of this activity, the Subaccounts feature has been enabled on the Enable/Disable Features
(CS100000) form.
On the Segmented Keys (CS202000) form, the SUBACCOUNT segmented key has been defined according to the
company's business needs. For details, see Subaccounts: Implementation Activity.

Process Overview
In this activity, on the Accounts Payable Preferences (AP101000) form, you will define the AP subaccount mask. On
the Non-Stock Items (IN202000) form, you will specify the expense subaccount that the system will use to form the
combined subaccount when that item is selected in a document. Finally, on the Employees (EP203000) form, for
Bill Owen, you will specify the expense subaccount that the system will use to form the combined subaccount if the
employee created a document.

System Preparation
To prepare the system, do the following in a tenant with the U100 dataset preloaded:
1. Sign in to the tenant as a system administrator by using the following credentials:
• Username: gibbs
 Implementing Advanced Financials | 119

• Password: 123
2. As a prerequisite to the current activity, make sure you have completed Subaccounts: Implementation Activity.

Step 1: Defining the Mask for Combined Subaccounts in AP Documents

To define the subaccount mask in the accounts payable preference settings, do the following:
1. Open the Accounts Payable Preferences (AP101000) form.
2. On the General tab (Data Entry Settings section), click in the Combine Expense Sub. From box, point at
the first segment, and press F3.
The Product Group lookup box opens with the possible options that can be selected.
3. Select III for the first segment.
This directs the system to copy the first segment from a non-stock item.
4. For the second segment, select EEE.
This directs the system to copy the second segment of the combined subaccount from an employee
account.
5. Click Save on the form toolbar.

Step 2: Specifying the Expense Subaccount for Non-Stock Items

For the ADVERT and CONSULT non-stock items, you will specify the expense subaccount that the system will use to
form the combined subaccount when those items are selected in a document. (In a production system, you would
specify the appropriate expense subaccount for all stock and non-stock items.)
To specify the expense subaccount for these non-stock items, do the following:
1. Open the Non-Stock Items (IN202000) form.
2. In the Inventory ID box of the Summary area, select ADVERT.
3. On the GL Accounts tab, in the Expense Sub. box, specify NSS-000.
4. On the form toolbar, click Save.
5. In the Inventory ID box, select CONSULT.
6. On the GL Accounts tab, in the Expense Sub. box, specify NSS-000.
7. On the form toolbar, click Save.

Step 3: Specifying the Expense Subaccount for an Employee

For Bill Owen, you will specify the expense subaccount that the system will use to form the combined subaccount if
the employee created a document.
To specify the expense subaccount for this employee, do the following:
1. Open the Employees (EP203000) form.
2. In the Employee ID box, select EP00000015.
3. On the Financial Settings tab, in the Expense Sub. box, specify 000-MKT.
4. On the form toolbar, click Save.
 Implementing Advanced Financials | 120

Interbranch Account Mapping

When an organization consists of multiple companies or branches, it oen has documents and transactions that
involve different companies or branches. It is necessary to set up the proper processing of interbranch transactions
to eliminate the risk of balances being calculated incorrectly.
In the topics of this chapter, you will find general information on configuring account mapping rules for balancing
transactions, an implementation checklist, and an activity with instructions on how to configure the rules.

Interbranch Account Mapping: General Information

Organizations can be configured in Acumatica ERP in a variety of ways, with multiple companies and multiple
branches within companies. As such, multiple branches or companies may be involved in a particular transaction.
In interbranch or intercompany transactions, because credit and debit amounts are posted to different branches or
companies, the account balances of the branches or companies may not be in balance. You may need to configure
the system to automatically generate balancing entries for interbranch or intercompany transactions so that
transactions are balanced in each involved branch or company.

If you have extended a branch as a customer or as a vendor and want to use them in AP and in AR
documents, you do not need to configure the account mapping. For more details on how to extend a
branch as a customer and as a vendor, review Intercompany Sales: Implementation Activity.

Learning Objectives
You will learn how to configure account mapping rules for transactions between companies and between branches
that require balancing.

Applicable Scenarios
You need to configure account mapping if you need to post GL transactions with different lines associated with
different companies or branches, and you need to balance the transactions in the books of each company or
branch.
For details on processing such interbranch and intercompany documents, see the following topics:
• Interbranch Bills with Balancing: General Information
• Interbranch Invoices with Balancing: General Information
• Intercompany Funds Transfers: General Information

Interbranch Balancing Entries

You need to set up the generation of balancing entries for interbranch transactions if any of the following
transactions can be generated in the organization:
• Transactions between different companies
• Transactions between branches of different companies
• Transactions between branches of one company that have separate accounting—that is, branches of a
company with the With Branches Requiring Balancing company type specified on the Companies (CS101500)
form
 Implementing Advanced Financials | 121

In these cases, transactions should be balanced in each company or branch involved so that the accounts of each
entity will be in balance and so that you can prepare financial statements for each company or branch.

Configuration of Interbranch Transactions with Balancing Entries

To configure in the system the rules the system will use to generate balancing entries, you have to do the following:
1. Make sure that the Inter-Branch Transactions feature has been enabled on the Enable/Disable Features
(CS100000) form.
2. Define the rules according to which the system will generate balancing entries on the Inter-Branch Account
Mapping (GL101010) form. In each rule, you specify the following:
• The originating branch in which an interbranch transaction is initiated. This is the branch specified for
the document whose release causes the transaction to be generated.
• For the balancing entry in the originating branch, you specify the following:
• The destination branch to which the interbranch transaction is targeted. This is the branch specified
in the particular line of the document whose release causes the transaction to be generated.
• The account range for mapping. That is, the range of accounts of the destination branch to which the
rule applies.
• The offset account to which the system will post the balancing entry in the originating branch. You
can use as this offset account any asset or liability account assigned to an appropriate account class,
depending on the organization reporting needs.
• For the balancing entry in the destination branch, you specify the following:
• The destination branch to which the interbranch transaction is targeted. This is the branch specified
in the particular line of the document whose release causes the transaction to be generated.
• The account range for mapping. That is, the range of accounts of the destination branch to which the
rule applies.
• The offset account to which the system will post the balancing entry in the destination branch.

Interbranch Account Mapping: Implementation Checklist

Before users begin to create intercompany and interbranch transactions, you must make sure that the system has
been configured properly and that all required entities have been created, as described in the following table.

Form Settings to Check Notes

Enable/Disable Features (CS100000) Make sure that the following fea-  

form tures have been enabled:
• Standard Financials
• Inter-Branch Transactions

Companies (CS101500) form Make sure that the necessary com-  

panies and branches have been
configured and the necessary
ledgers have been assigned.

Inter-Branch Account Mapping Make sure that all the necessary ac-  
(GL101010) form count mapping rules have been de-
fined.
 Implementing Advanced Financials | 122

Interbranch Account Mapping: Implementation Activity

In this activity, you will learn how to define account mapping rules for intercompany and interbranch transactions
in the system.
This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
The Muffins & Cakes company registers transactions between its branches in the system. Its branches use separate
accounting, so they require balancing. The company also registers transactions with the SweetLife head office and
retail shop. The account mapping rules between the Muffins & Cakes head office branch (MHEAD in the system) and
the Muffin & Cakes retail store branch (MRETAIL) have already been defined in Acumatica ERP as well as mapping
rules between the Muffins & Cakes head office branch and the SweetLife head office branch (HEADOFFICE). You will
review these rules. You need to define account mapping rules for transactions between Muffins & Cakes head office
branch and SweetLife retail shop (RETAIL).

Process Overview
In this activity, you will review the preconfigured account mapping on the Inter-Branch Account Mapping (GL101010)
form. On the same form, you will configure the account mapping rules for transactions between two branches of
separate companies.

System Preparation
Launch the Acumatica ERP website with the U100 dataset, and sign in as a system administrator by using the
following credentials:
• Username: gibbs
• Password: 123

Step 1: Reviewing the Configuration of Mapping Rules Between Branches

To review the configuration of account mapping rules between the two branches of the Muffins Head Office &
Wholesale Center company, do the following:
1. Open the Inter-Branch Account Mapping (GL101010) form.
2. In the Originating Branch box of the Summary area, select MHEAD.
The originating branch is the branch to which the rules defined on the tabs apply.
3. On the Transaction in Originating Branch tab, review the settings that are used to generate balancing
transactions in the originating branch.
In the first row on this tab, notice that the MRETAIL branch is selected as the destination branch. This
mapping rule applies to all the accounts within the specified account range. The 19000 - Due from Related
Entity account is specified as the offset account to which the system will post the balancing entry in the
originating branch. The same settings apply to the HEADOFFICE branch in the second row of the tab.
4. On the Transaction in Destination Branch tab, review the settings that are used to generate balancing
transactions in the destination branch.
 Implementing Advanced Financials | 123

In the rows on this tab, notice that 26000 - Due to Related Entity is specified as the offset account to which
the system will post the balancing entry in the destination branches.
5. In the Originating Branch box in the Summary area, select MRETAIL, and review the mapping rules for
transactions originating from the MRETAIL branch.

Now that you have reviewed the settings of existing interbranch account mapping rules, you will create your own
account mapping rules.

Step 2: Defining Interbranch Account Mapping for Intercompany Transactions

To configure the account mapping rules for transactions between the Muffins Head Office & Wholesale Center branch
and the SweetLife Store branch, which are in separate companies, do the following:
1. While you are still on the Inter-Branch Account Mapping (GL101010) form, select MHEAD in the Originating
Branch box of the Summary area.
2. On the Transaction in Originating Branch tab, click Add Row on the table toolbar, and specify the
following settings in the new row:
• Destination Branch: RETAIL
• Account From: 00000
• Account To: 99999
• Offset Account: 19000 - Due from Related Entity
This mapping rule applies to all the accounts within the specified account range. The 19000 - Due from
Related Entity account is specified as the offset account to which the system will post the balancing entry in
the originating branch.
3. On the Transaction in Destination Branch tab, click Add Row on the table toolbar, and specify the
following settings in the new row:
• Destination Branch: RETAIL
• Account From: 00000
• Account To: 99999
• Offset Account: 26000 - Due to Related Entity
This mapping rule applies to all the accounts within the specified account range. The 26000 - Due to Related
Entity account is specified as the offset account to which the system will post the balancing entry in the
destination branch.
4. On the form toolbar, click Save.
You have defined the account mapping rules to be used when MHEAD is the originating branch and RETAIL
is the destination branch. Now you will specify the account mapping rules to be used when RETAIL is the
originating branch and MHEAD is the destination branch.
5. In the Originating Branch box, select RETAIL.
6. On the Transaction in Originating Branch tab, click Add Row on the table toolbar, and specify the
following settings in the new row:
• Destination Branch: MHEAD
• Account From: 00000
• Account To: 99999
• Offset Account: 19000 - Due from Related Entity
7. On the Transaction in Destination Branch tab, click Add Row on the table toolbar, and specify the
following settings in the new row as shown in the screenshot below:
• Destination Branch: MHEAD
• Account From: 00000
 Implementing Advanced Financials | 124

• Account To: 99999

• Offset Account: 26000 - Due to Related Entity
8. On the form toolbar, click Save.
Now you have configured balancing rules that will be used for transactions between the Muffins Head Office
& Wholesale Center branch and the SweetLife Store branch.

Figure: Interbranch account mapping for RETAIL and MHEAD branches

Intercompany Sales

The topics of this chapter describe how to set up the intercompany sales functionality in Acumatica ERP, which
gives users the ability to record the sales of goods and services between related companies or branches of related
companies.

Intercompany Sales: General Information

You use the intercompany sales functionality to record the sales of goods and services between related companies
or branches of related companies. While viewing a company or branch, an administrator can quickly extend it—that
is, cause it to be defined as a customer or vendor.
The intercompany sales functionality is available in the system if the Inter-Branch Transactions feature has been
enabled on the Enable/Disable Features (CS100000) form.

Learning Objectives
In this chapter, you will learn how to extend branches and companies to be customers and vendors, so that they
can later perform intercompany sales.

Applicable Scenarios
You use the intercompany sales functionality if there are multiple companies defined in the same tenant and one
of the companies (the selling company) has rendered a service or sold goods to another company (the purchasing
company). Each of these companies can consist of multiple branches. The selling company creates an AR document
(invoice, debit memo, or credit memo) where the purchasing company is a customer. In the created AP document
(bill, debit adjustment, or credit adjustment), the selling company should be specified as a vendor.
 Implementing Advanced Financials | 125

Extending of Companies or Branches as Customers and Vendors

Companies that have the Without Branches company type can be extended as customers or vendors on the
Companies (CS101500) form. Branches of companies with the With Branches Not Requiring Balancing or With
Branches Requiring Balancing company type can be extended as customers or vendors on the Branches (CS102000)
form.
With a company of the Without Branches type selected on the Companies form, you click Extend as Customer
(under Company Management) on the More menu. The system navigates to the Customers (AR303000) form and
automatically inserts the company's settings into the appropriate boxes for the newly created customer based
on the company. The system inserts the settings specified for the customer class, except for the Tax Zone and
Shipping Rule on the Shipping tab, and the subaccounts specified on the GL Accounts tab (if subaccounts are in
use in the system). Once the customer based on the company has been saved, this customer can be selected for
documents on the Invoices and Memos (AR301000) form and other forms.

Once a company with the Without Branches type has been extended as a customer, you cannot
change the type of this company.

With a company of the Without Branches type selected on the Companies form, if you click Extend as Vendor
(under Company Management) on the More menu, the system navigates to the Vendors (AP303000) form and
automatically inserts the company's settings into the appropriate boxes for the newly created vendor based on the
company. The system inserts the settings specified for the vendor class, except for the Tax Zone on the Purchase
Settings tab, and the subaccounts specified on the GL Accounts tab (if subaccounts are in use in the system). Once
the vendor based on the company has been saved, this vendor can be selected for documents on the Bills and
Adjustments (AP301000) form and other forms.

A company extended to be a customer or vendor cannot be deleted unless the customer or vendor
record has been deleted first.

With a branch selected on the Branches (CS102000) form, if you click Extend as Customer (under Company
Management) on the More menu, the system navigates to the Customers form and automatically inserts the branch
settings into the appropriate boxes for the newly created customer based on the branch. The system inserts the
settings specified for the customer class, except for the Tax Zone and Shipping Rule on the Shipping tab, and the
subaccounts specified on the GL Accounts tab (if subaccounts are in use in the system). Once the customer based
on the branch has been saved, this customer can be selected for documents on the Invoices and Memos form and
other forms.
With a branch selected on the Branches form, if you click Extend as Vendor (under Company Management) on
the More menu, the system navigates to the Vendors form and automatically inserts the branch settings into the
appropriate boxes for the newly created vendor based on the branch. The system inserts the settings specified for
the vendor class, except for the Tax Zone on the Purchase Settings tab, and the subaccounts specified on the GL
Accounts tab (if subaccounts are in use in the system). Once the vendor based on the branch has been saved, this
vendor can be selected for documents on the Bills and Adjustments form and other forms.

A branch extended to be a customer or vendor cannot be deleted unless the customer or vendor
record has been deleted first.

Setup of Default Sales Account in Intercompany Invoices

On the Accounts Receivable Preferences (AR101000) form, the Use Intercompany Sales Account From box
defines which sales account the system inserts in the lines of an intercompany AR document whose customer was
extended based on a company or branch. You can select one of the following options:
 Implementing Advanced Financials | 126

• Customer Location (default): The system inserts the sales account specified in the Sales Account box on the
GL Accounts tab of the Customer Locations (AR303020) form for the customer location selected for the AR
document.
• Inventory Item: The system inserts the sales account specified in the Sales Account box on the GL Accounts
tab of the Non-Stock Items (IN202000) form if a non-stock item is specified in the AR document line.

Setup of Default Expense Account in Bills from Related Companies

On the Accounts Payable Preferences (AP101000) form, the Use Intercompany Expense Account From box defines
which expense account the system inserts in the lines of an intercompany AP document of a vendor that was
extended based on a company or branch. You can select the following options:
• Vendor Location (default): The system inserts the expense account specified in the Expense Account box
on the GL Accounts tab of the Vendor Locations (AP303010) form for the vendor location selected for the AP
document.
• Inventory Item: The system inserts the expense account specified in the Expense Account box on the GL
Accounts tab of the Non-Stock Items (IN202000) form if a non-stock item is specified in the AP document
line.

Intercompany Sales: Mapping Rules

This topic provides a list of values inserted into the UI elements of an AP document created from an AR document.
Aer the creation of a new AP document, the relation between the AR document and the AP document is saved to
the database.

Table: Mapping Rules for the Creation of AP Documents

This table shows the UI elements for an AP document on the Bills and Adjustments (AP301000) or Generate
Intercompany Documents (AP503500) form and the values from the corresponding AR document. The AR document
may be on the Invoices and Memos (AR301000) form.

UI Element Value

Summary area

Type • Bill if the AR document's type is Invoice

• Credit Adj. if the AR document's type is Debit Memo.
• Debit Adj. if the AR document's type is Credit Memo.

Date The value from the Date box on the Invoices and Memos (AR301000) form.
 Implementing Advanced Financials | 127

UI Element Value

Post Period • If the AP document was generated on the Generate Intercompany Documents
(AP503500) form, this is the value specified in the Post Period box on the In-
voices and Memos form. If this setting has not been specified, the post period
is calculated as the period from the calendar of the AP document's originat-
ing branch that corresponds to the AR document's Post Period in the master
calendar.
• If the AP document was generated on the Invoices and Memos form, the post
period is calculated as the period from the calendar of the AP document's
originating branch that corresponds to the AR document's Post Period in the
master calendar. If the period does not exist in the calendar of the AP doc-
ument's originating branch, the value is empty. If the period is Inactive or
Locked, the system displays an error message. If posting to closed periods is
allowed for the user, an AP document is created with a warning in the Post
Period box on the Bills and Adjustments (AP301000) form. If posting to closed
periods is not allowed, the AP document is not created.

Vendor Ref The reference number of the AR document specified in the Reference Number
box on the Invoices and Memos form.

Vendor The originating branch of the AR document.

Location The vendor's default location.

Currency The currency of the AR document.

Currency Rate Type The currency rate type of the AR document.

Currency Exchange Rate The exchange rate of the AR document.

Terms The credit terms of the AR document.

Due Date The due date of the AR document.

Cash Discount Date The cash discount date of the AR document.

Pay by Line check box The state of the Pay by Line check box on the Vendors (AP301000) form for the
vendor.

Description The description of the AR document.

Discount Total • If the Vendor Discounts feature has been enabled on the Enable/Disable Fea-
tures (CS100000) form, an automatically calculated value based on the values
on the Discount Details tab on the Bills and Adjustments form.
• If the Vendor Discount feature has been disabled:
• If the Customer Discounts feature has been enabled, the sum of the Dis-
count Amount values of all lines on the Discount Details tab on the In-
voices and Memos form.
• If the Customer Discounts feature has been disabled, the Discount Total
of the AR document.

Amount The value of the Amount box on the Invoices and Memos form.
 Implementing Advanced Financials | 128

UI Element Value

Cash Discount If the AP document's amount is the same as the AR document's amount, the val-
ue of the Cash Discount box of the Invoices and Memos form. Otherwise, this
value is calculated based on the credit terms of the AR document.

Financial tab

Branch The customer specified in the Customer box of the Invoices and Memos form.

Vendor Tax Zone The tax zone specified for the vendor location in the Tax Zone box on the Pur-
chase Settings tab of the Vendors (AP303000) form.

Tax Calculation Mode The tax calculation mode specified in the Tax Calculation Mode box on the Fi-
nancial tab of the Invoices and Memos form.

Details tab

Branch The customer specified in the Customer box of the Invoices and Memos form.

Inventory ID The Inventory ID of the AR document line.

Transaction Description The Transaction Description of the AR document line.

Quantity The Quantity of the AR document line.

UOM The UOM of the AR document line.

Unit Cost The Unit Cost of the AR document line.

Ext. Cost The Ext. Cost of the AR document line.

Account One of the following, depending on the value of the Use Intercompany Ex-
pense Account From box on the Accounts Payable Preferences (AP101000) form:
• If Vendor Location is selected, the expense account specified in the Expense
Account box on the GL Accounts tab of the Vendor Locations (AP303010)
form for the customer location selected for this AR document.
• If Inventory Item is selected, the expense account specified in the Expense
Account box on the GL Accounts tab of the Non-Stock Items (IN202000) form
for a non-stock item specified in the AR document line.

Project If the Copy Project Information to AP Document check box has been select-
ed on the Generate Intercompany Documents form or you clicked Yes in the con-
firmation message on the Invoices and Memos form, the Project of the AR doc-
ument. Otherwise, the non-project code specified on the Projects Preferences
(PM101000) form (X by default) is inserted.

Project Task If the Copy Project Information to AP Document check box has been select-
ed on the Generate Intercompany Documents form or you clicked Yes in the con-
firmation message on the Invoices and Memos form, the Project Task of the AR
document. Otherwise, the value is empty.
 Implementing Advanced Financials | 129

UI Element Value

Cost Code If the Copy Project Information to AP Document check box has been selected
on the Generate Intercompany Documents form or you clicked Yes in the confir-
mation message on the Invoices and Memos form, the Cost Code of the AR docu-
ment. Otherwise, the value is empty.

Discount Amount The Discount Amount of the AR document line.

Discount Percent The Discount Percent of the AR document line.

Manual Discount check box Selected.

Deferral Code Empty. Because deferral codes cannot be used simultaneously in AR and AP
documents, if at least one deferral code is specified in at least one line of the re-
lated AR document, the system displays a warning that deferral codes cannot be
copied.

Tax Category The Tax Category of the AR document line.

Discounts tab

Lines are created if the Vendor Discounts feature has been enabled. If the Customer Discounts fea-
ture has been enabled, each discount line in the AP document corresponds to a discount line of the
AR document and contains the following column values.

Manual Discount check box Selected.

Discount Amount The Discount Amount of the AR document’s discount line.

Description The Description of the AR document's discount line.

If the Customer Discounts feature has been disabled, one discount line is created in the AP document with the
following column values.

Manual Discount check box Selected.

Discount Amount The Discount Total of the AR document.

Intercompany Sales: Configuration Prerequisites

Before starting to set up the intercompany sales functionality, you should be sure that the needed features have
been enabled, settings have been specified, and entities have been created, as described in the following sections.

Enabling the Needed Features

On the Enable/Disable Features (CS100000) form, the Standard Financials, Multibranch Support, Multicompany
Support, Advanced Financials, and Inter-Branch Transactions features must be enabled.
 Implementing Advanced Financials | 130

Configuring the System

You need to make sure the following tasks have been performed in Acumatica ERP before you begin to set up the
intercompany sales functionality:
• If you are going to extend as a customer or vendor any company that has the Without Branches company
type, on the Companies (CS101500) form, make sure that the has been configured. For details, see Company
Without Branches: To Configure a Company Without Branches.
• If you are going to extend as a customer or vendor any branches of companies with the With Branches Not
Requiring Balancing or With Branches Requiring Balancing company type, on the Branches (CS102000) form,
make sure that the companies have been configured. For details, see Company with Branches that Do Not
Require Balancing: Implementation Activity and Company with Branches that Require Balancing: Implementation
Activity.
• On the Customer Classes (AR201000) form, make sure that the customer class to be used for a customer
extended from a company or branch has been defined. For details, see Accounts Receivable: To Create a
Customer Class.
• On the Vendor Classes (AP201000) form, make sure that the vendor class to be used for a vendor extended
from a company or branch has been defined. For details, see Accounts Payable: To Create a Vendor Class.

Validation of Configuration
To make sure that all configuration has been performed correctly, we recommend that in your system, you set up
the intercompany sales functionality by performing instructions similar to those described in Intercompany Sales:
Implementation Activity.

Intercompany Sales: Implementation Activity

The following activity will walk you through the process of setting up intercompany sales between branches of two
companies within the same tenant.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that the Head Office of the Muffins & Cakes company has to purchase juicer installation services from
the Service and Equipment Sales Center of SweetLife Fruits & Jams. An accountant of SweetLife Fruits & Jams
issues an invoice to the Muffins & Cakes company for the services. The corresponding AP bill needs to be processed
in Muffins & Cakes. Two documents have to be created in the system for a single transaction (AR invoice in the
selling company and AP bill in the purchasing company), but the accountant does not want to enter both of them
manually. To cause the system to create the AP bill automatically based on an AR invoice, the chief accountant of
SweetLife has decided to use the intercompany sales functionality.
 Implementing Advanced Financials | 131

Before using this functionality, these related companies used interbranch account mapping specified
on the Inter-Branch Account Mapping (GL101010) form, which caused the system to create balancing
entries, but the companies did not issue invoices or bills for each other. This approach is described in
the following activities: Interbranch Bills with Balancing: Activity and Interbranch Invoices with Balancing:
Activity.

For training purposes we illustrated these two approaches for the same pair of companies. However,
in a production environment, you need to choose the approach that suites your company better–
either creation of balancing entries or intercompany sales–and use it consistently.

Acting as a system administrator, you need to extend the SWEEPEQUIP branch of SweetLife to be a vendor and the
MHEAD branch of Muffins & Cakes to be a customer.

Configuration Overview
For the purposes of this activity, the following features have been enabled:
• Standard Financials
• Multibranch Support
• Multicompany Support
• Advanced Financials
• Inter-Branch Transactions
On the Branches (CS102000) form, the SWEETEQUIP (Service and Equipment Sales Center) and MHEAD (Muffins
Head Office & Wholesale Center) branches of SweetLife and Muffins & Cakes, respectively, have been defined.
On the Vendor Classes (AP201000) form, the INTERCO vendor class for vendors extended from companies and
branches has been configured.
On the Customer Classes (AR201000) form, the INTERCO customer class for customers extended from companies
and branches has been configured.

Process Overview
In this activity, you will review the AP and AR preferences on the Accounts Payable Preferences (AP101000)
and Accounts Receivable Preferences (AR101000) forms. On the Branches (CS102000) form, you will extend the
SWEETEQUIP branch to be a vendor and the MHEAD branch to be a customer. On the Vendors (AP303000) form, you
will update the settings of the new vendor and on the Customers (AR303000) form, you will update the settings of
the new customer.

System Preparation
Launch the Acumatica ERP website, and sign in as a system administrator by using the following credentials:
• Username: gibbs
• Password: 123

Step 1: Reviewing the AP and AR Preferences

Before you start configuring the intercompany sales functionality, you need to review the related AP and AR
preferences. Do the following:
1. Open the Accounts Payable Preferences (AP101000) form.
2. In the Data Entry Settings section on the General tab, review the value in the Use Intercompany Expense
Account From box.
 Implementing Advanced Financials | 132

In the box, Vendor Location is specified, meaning that the system will use the expense account specified on
the Vendor Locations (AP303010) form for the vendor location selected in an AP document.
3. Open the Accounts Receivable Preferences (AR101000) form.
4. In the Data Entry Settings section on the General tab, review the value in the Use Intercompany Sales
Account From box.
In the box, Customer Location is specified, meaning that the system will use the sales account specified on
the Customer Locations (AR303020) form for the customer location selected for the AR document.

Step 2: Extending a Branch as a Vendor

To extend the SWEETEQUIP branch as a vendor, do the following:
1. Open the Branches (CS102000) form.
2. In the Branch ID box, select SWEETEQUIP.
3. On the More menu (under Company Management), click Extend as Vendor. The system opens the Vendors
(AP303000) form with the appropriate settings copied from the branch to the vendor.
4. In the Vendor Class box in the Summary area, select INTERCO.
5. In the warning message that displays, click Yes.
6. On the GL Accounts tab, review the settings of the MAIN location automatically created by the system.
The account specified in the Expense Account column is 53100 - Intercompany Expenses, which has been
copied from the settings of the selected vendor class. This account will be used by default in generated AP
documents.
7. On the form toolbar, click Save.

For a branch that has been extended as a vendor, on the Branches form, the View Vendor
command becomes available under Company Management on the More menu. You can
click it to review the settings of the vendor created based on this branch on the Vendors form.
Similarly, for a company that has been extended as a vendor, the View Vendor command
becomes available on the Companies (CS101500) form.

Step 3: Extending a Branch as a Customer

To extend the MHEAD branch as a customer, do the following:
1. Open the Branches (CS102000) form.
2. In the Branch ID box, select MHEAD.
3. On the More menu (under Company Management), click Extend as Customer. The system opens the
Customers (AR303000) form with the appropriate settings copied from the branch to the customer.
4. In the Customer Class box in the Summary area, select INTERCO.
5. In the warning message that displays, click Yes.
6. On the GL Accounts tab, review the settings of the MAIN location automatically created by the system.
The account specified in the Sales Account column is 43000 - Related Company Sales, which has been
copied from the settings of the selected customer class. The account specified in the AR Account column is
19010 - Accounts Receivable - Related Company, which has also been copied from the settings of the selected
customer class. These accounts will be used by default in generated AR documents.
7. On the form toolbar, click Save.
 Implementing Advanced Financials | 133

For a branch that has been extended as a customer, on the Branches form, the View Customer
command becomes available under Company Management on the More menu. You can click
it to review the settings of the customer created based on this branch on the Customers form.
Similarly, for a company that has been extended as a customer, the View Customer command
becomes available on the Companies (CS101500) form.

Subaccounts

In Acumatica ERP, to better track the revenue and expenses of your company while keeping your chart of accounts
of a manageable size, you can use subaccounts to virtually split your accounts into smaller and more specific
accounts.
This chapter provides information about defining subaccounts in the system, including an example of the
configuration of subaccount identifiers.

Subaccounts: General Information

In Acumatica ERP, you can use subaccounts in addition to accounts to record your financial data. You use
subaccounts to virtually split accounts into smaller, more specific accounts to achieve finer classification for
reporting and internal management purposes. Before you begin to use subaccounts, the system has to be properly
configured.

In production use, we recommend that subaccounts be configured very early in the system setup,
when you configure the general ledger settings, including the chart of accounts.

Learning Objectives
In this chapter, you will learn how to do the following:
• Enable the Subaccounts feature
• Modify the predefined SUBACCOUNT segmented key
• Specify values for subaccount segments

Applicable Scenarios
You configure subaccounts in the system when it is necessary to provide more detailed reports and to separate data
in the reports. For example, if the company wants to report expenses by department and report revenue by sales
region, you might configure subaccounts with at least two segments (for department and sales region).

Implementation Workflow
To configure subaccounts in the system, you do the following:
1. Enable the Subaccounts feature on the Enable/Disable Features (CS100000) form.
2. Configure the SUBACCOUNT segmented key on the Segmented Keys (CS202000) form, and define the list of
possible values for segments on the Segment Values (CS203000) form.
3. If the By Segmented Key mode is selected for the SUBACCOUNT segmented key on the Segmented Keys form,
define the needed subaccounts on the Subaccounts (GL203000) form.
 Implementing Advanced Financials | 134

Aer you have performed these actions, you can start recording transactions to account–subaccount pairs.

Configuration of Subaccount Identifiers

Acumatica ERP provides the predefined SUBACCOUNT segmented key, which determines the structure of
subaccount identifiers and which you can access and edit on the Segmented Keys (CS202000) form. You can modify
this segmented key so that the structure of subaccount identifiers meets the company’s business needs.
The SUBACCOUNT segmented key consists of a string, which can be up to 30 characters. You can divide the
segmented key into multiple segments or can leave it non-segmented. To make subaccount identifiers easy to
remember for users of the system (and thus less likely to be entered incorrectly), we recommend that you compose
identifiers of segments with different meanings. For example, the subaccount identifiers could contain a two-
character regional branch code, a one-digit department number, and a three-character product type, resulting
in an identifier such as CA-1-T32. For a more detailed example of the planning of meaningful identifiers, see
Subaccounts: Example of Planning of Subaccount Identifiers.

Depending on the validation setting of the subaccount entry (see the following section), you might need to add all
necessary subaccounts on the Subaccounts (GL203000) form.
You use the table on the Segmented Keys form to configure the segments of the SUBACCOUNT segmented key, with
each row representing the settings of a segment. By using the check box in the Validate column of the table, you
can also turn on validation for the segment values of subaccounts. If this validation is turned on for a segment, the
segment values have to be specified on the Segment Values (CS203000) form. If this validation is turned off, a user
can enter a new segment directly on a data entry form or the Subaccounts form.

Validation of Entered Subaccounts

The validation of subaccounts during data entry is controlled by the entry and lookup mode selected in the Lookup
Mode box in the Summary area of the Segmented Keys (CS202000) form for the SUBACCOUNT segmented key.
Depending on whether you want to turn on validation or not, you do one of the following:
• To give users the ability to select subaccounts on a data entry form only from the list of defined subaccounts
in the system, you select the By Segmented Key mode. In this case, all necessary subaccounts have to be
specified on the Subaccounts (GL203000) form before any transaction can be entered.
• To give users the ability to enter subaccounts on a data entry form by selecting the values segment by
segment, you select the By Segment: All Avail. Segment Values mode. When a user enters a new subaccount
on any data entry form, the system automatically adds it to the list of subaccounts on the Subaccounts form.

You might want to select the By Segment: All Avail. Segment Values mode when the number of
segments and the number of values in each segment could produce too many combinations to
enter them in advance.

Subaccounts: Configuration Prerequisites

Before you start to configure subaccounts, you must be sure that the system has been configured properly and that
all required entities have been created, as described in the following sections.

Enabling the Needed Features

On the Enable/Disable Features (CS100000) form, the minimum set of features has to be enabled.
 Implementing Advanced Financials | 135

Configuring the System

On the Companies (CS101500) form, you need to make sure that the companies of the organization have been
configured and that the appropriate actual ledger has been assigned to each of them. For more information on
creating companies, see one of the following topics: Company Without Branches: To Configure a Company Without
Branches Company with Branches that Do Not Require Balancing: Implementation Activity, or Company with Branches
that Require Balancing: Implementation Activity. For details on creating an actual ledger, see General Ledger: To
Create an Actual Ledger.

Subaccounts: Example of Planning of Subaccount Identifiers

Suppose that one company—North Serpent Company, with stores in the mountainous areas of California and
Nevada—sells skis and snowboards and offers rental services. This company plans to implement Acumatica ERP
and is planning its general ledger functionality, including the accounts and subaccounts it will use.
Currently, each sale transaction of a ski or a snowboard is recorded to sales account 40000. At the close of each
period, however, management would like to know the total sales on skis in the California stores and in the Nevada
stores and the total sales on snowboards in the California stores and in the Nevada stores, as well as the total rental
of snowboards in the California stores and in the Nevada stores and the total rental of skis in the California stores
and in the Nevada stores.
One approach the company initially considered was replacing the 40000 sales account with eight more specific
accounts in Acumatica ERP, as shown below:
• 40100: Ski sales in a Nevada store
• 40200: Snowboard sales in a Nevada store
• 40300: Ski rentals in a Nevada store
• 40400: Snowboard rentals in a Nevada store
• 40500: Ski sales in a California store
• 40600: Snowboard sales in a California store
• 40700: Ski rentals in a California store
• 40800: Snowboard rentals in a California store
One of the implementation consultants determined that by using subaccounts, the company could meet its needs
for tracking and reporting while also reducing entry errors and the need for users to memorize strings of account
numbers. By implementing subaccounts, North Serpent Company could answer such questions as the following:
What is the total sales amount for snowboards in both stores? What is our revenue from rental services? Additionally,
because stores could record expenses to the appropriate subaccounts, management would have the ability to
analyze profit by stores, by cost centers, and by product type.

Planning of Subaccount Identifiers

In Acumatica ERP, subaccounts are referred to by their identifiers. Because subaccounts are used primarily to
give internal management information it can use for analysis and planning, greater flexibility is allowed for their
design, and identifiers can be segmented. Segmented identifiers with meaningful, recognizable segment values
reduce the input error rate, because they are easier for employees to enter. For the North Serpent Company, the
implementation consultants decided to define a three-segment subaccount in the following way:
• First Segment (Company Division): NV (Nevada) and CA (California)
• Second Segment (Profit Center): RENT (rentals) and SALE (sales)
• Third Segment (Product Type): SK (skis) and SB (snowboards)
All sales and rental transactions can then be posted to the sales account 40000 with the following subaccounts:
 Implementing Advanced Financials | 136

• NV-SALE-SK: To enter sales amounts on skis in Nevada

• NV-SALE-SB: To enter sales amounts on snowboards in Nevada
• NV-RENT-SK: To enter amounts received on ski rentals in Nevada
• NV-RENT-SB: To enter amounts received on snowboard rentals in Nevada
• CA-SALE-SK: To enter sales amounts on skis in California
• CA-SALE-SB: To enter sales amounts on snowboards in California
• CA-RENT-SK: To enter amounts received on ski rentals in California
• CA-RENT-SB: To enter amounts received on snowboard rentals in California

Subaccounts: Implementation Activity

In this activity, you will learn how to enable the appropriate feature to use subaccounts, define the structure of
subaccounts, and specify the allowable values for subaccount segments in the system.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that the management of SweetLife Fruits & Jams company wants to report the company’s expenses by
department and its revenue by groups of products (referred to as items in the system).
Acting as a system administrator, you have to perform the needed actions to configure subaccounts in the system.
The subaccounts will consist of two segments: one that represents a product, and the other that represents a
department. You also have to specify the values for each segment and set up the subaccounts so that users enter
subaccounts on data entry forms by selecting the values segment by segment.

Process Overview
To configure subaccounts in the system, you will first enable the Subaccounts feature on the Enable/Disable
Features (CS100000) form. You will then configure the SUBACCOUNT segmented key according to the company's
business needs on the Segmented Keys (CS202000) form. Finally, you will assign values to the segments on the
Segment Values (CS203000) form. You will then check the subaccounts on the Subaccounts (GL203000) form and
change them if necessary.

System Preparation
You need to launch the Acumatica ERP website and sign in to a tenant with the U100 dataset preloaded. Sign in as a
system administrator by using the following credentials:
• Username: gibbs
• Password: 123

Although in this activity, the subaccounts are configured on a system that has already been in use, for
production use, we recommend that you configure the subaccounts very early in the system setup,
when you configure the general ledger settings, including the chart of accounts.
 Implementing Advanced Financials | 137

Step 1: Enabling the Subaccounts Feature

To enable the Subaccounts feature, do the following:
1. Open the Enable/Disable Features (CS100000) form.
2. On the form toolbar, click Modify to make it possible to change the set of enabled features.
3. Select the Subaccounts check box under the Advanced Financials group of features.
4. On the form toolbar, click Enable.

In a production environment, aer the features are enabled and before you proceed with implementation, you
have to activate the Acumatica ERP license by using the Activate License (SM201510) form. In this practice activity,
you are using Acumatica ERP under the trial license, which does not require activation and provides all available
features.

Step 2: Modifying the SUBACCOUNT Segmented Key

To modify the SUBACCOUNT segmented key, do the following:
1. Open the Segmented Keys (CS202000) form.
2. In the Segmented Key ID box of the Summary area, select SUBACCOUNT.
3. In the Lookup Mode box, select By Segment: All Avail. Segment Values. Notice that the Allow Adding New
Values On the Fly check box becomes selected automatically.
In this lookup mode, users can combine subaccounts from the needed segments during data entry. For each
segment, a user can type an allowed value or press F3 to select a value from the predefined list. Each new
combination is saved to the list that you can view and edit on the Subaccounts (GL203000) form.
4. In the table, for the 1 segment, specify the following settings:
• Description: Product Group
• Length: 3
• Validate: Selected
These settings mean that the validation of segment values is turned on for the segment. With this check
box selected, a user can add a value to this particular segment only by selecting the value from the list of
available ones.
5. On the table toolbar, click Add Row, and specify the following settings in a new row:
• Description: Department
• Length: 3
• Validate: Selected
6. On the form toolbar, click Save.

You have defined the SUBACCOUNT segmented key according to the company's business needs. You will now define
the available values for each segment.

Step 3: Defining the Allowable Values for the Segments of the SUBACCOUNT Segmented Key
To define the segment values, do the following:
1. While you are still viewing the SUBACCOUNT segmented key on the Segmented Keys (CS202000) form, click 1
in the Segment ID column of the table.
The system opens the Segment Values (CS203000) form for the 1 segment of the SUBACCOUNT segmented
key.
2. On the table toolbar, click Add Row, and specify the following settings:
 Implementing Advanced Financials | 138

• Value: 000
• Description: All other products
3. Add five more rows with the following sets of values, which represent the group of items to which the
applicable item belongs.

Value Description

ELE Electronics and computer equipment

EQU Juicers and their components

FRU Fruits

JAM Jams

NSS Non-stock items and services

4. On the form toolbar, click Save.

5. In the Segment ID box, select 2.
6. Add six rows with the following sets of values, which represent the applicable department.

Value Description

000 Corporate

ENG After-sales engineering

FIN Finance

MKT Marketing

OPS Operations

SLS Sales

7. On the form toolbar, click Save.

You have specified the allowable values for subaccount segments.

Step 4: Changing Subaccounts

Because you have enabled the Subaccounts feature on the Enable/Disable Features (CS100000) form and configured
subaccounts in the system, in which transactions have already been added, the system added the 0 subaccount to
which all these transactions are now related. You need to change this subaccount so that it contains the values that
you have specified for the SUBACCOUNT segmented key. Do the following:
1. Open the Subaccounts (GL203000) form.
2. In the Subaccount column, for the only row, double-click the subaccount identifier, and change it to
000-000.
3. On the form toolbar, click Save.
4. In the dialog box that opens, click Yes.
 Implementing Advanced Financials | 139

Now all the transactions that existed before you have configured subaccounts relate to the 000-000 subaccount.
You have configured the subaccounts in the system. Now the appropriate subaccounts must be specified for every
transaction in the system.

Subaccounts: Allowable Changes to the Configuration of Subaccounts

Aer subaccounts have been fully configured and transactions have been posted in your system, there are
limitations to the changes you can make to subaccounts. For example, you can append a segment to subaccount
identifiers, but you cannot delete segments of these identifiers, because such a deletion could result in lost data. If
you need to change the configuration of subaccounts in a live system, you have the following options:
• If you are not planning to use a subaccount anymore, you can deactivate it on the Subaccounts (GL203000)
form. If you deactivate it, the system maintains the history of transactions for the subaccount, but users
cannot create new documents or transactions with the deactivated subaccount. For details, see To
Deactivate a Subaccount.
A subaccount can be deleted only if it has no transactions posted.
• You can add a new segment to the end of subaccount identifiers on the Segmented Keys (CS202000)
form. In this case, the account–subaccount combinations that are referred to in existing transactions will
be assigned an empty value in the new segment. You can update the list of these combinations on the
Subaccounts form and specify the needed values for the new segment. The history of transactions will be
updated to reflect the expanded subaccount identifiers.
You cannot delete any segments of subaccount identifiers.
• For subaccount identifiers, you can add new segment values and edit the existing values on the Segment
Values (CS203000) form. If you change a segment value, on the Subaccounts form, you have to update the
list of subaccounts that use the old value to the new value, and the history of transactions will be updated to
use the new subaccount identifiers.
• You can merge subaccounts by moving the balances to one of these subaccounts and deactivating the
unnecessary subaccounts on the Subaccounts form. Aer you perform these actions, you can also deactivate
any unnecessary values on the Segment Values form so that the users cannot select these values when
combining subaccounts on the fly.

To Add a Subaccount

You use the Subaccounts (GL203000) form to add a subaccount.

Before You Proceed

1. On the Segmented Keys (CS202000) form, be sure the structure of subaccounts has been configured.
2. Review the meanings of the subaccount segment values in your organization. For segments requiring
validation, you define valid values by using the Segment Values (CS203000) form.

To Add a Subaccount
1. Open the Subaccounts (GL203000) form.

To open the form for creating a new record, type the form ID in the Search box, and on the
Search form, point at the form title and click New right of the title.

2. On the table toolbar, click Add Row.

 Implementing Advanced Financials | 140

The input mask for subaccount identifiers is shown in the Subaccount column for the new row.
3. Create the subaccount by using one of the following methods, depending on whether the Validate check
box is selected for the segment on the Segmented Keys (CS202000) form:
• If the Validate check box is selected for the segment, select the segment value from the list of predefined
values.
• If the check box is not selected for the segment, type a value. The system will validate this value for only
the number of characters and the type of string (specified in the Edit Mask box on the Segmented Keys
form).
4. Make sure the Active check box is selected in the row of the subaccount.
5. If needed, in the Description column, briefly describe the subaccount.
6. On the form toolbar, click Save.

To Deactivate a Subaccount

A subaccount that has transactions posted cannot be deleted; if such a subaccount is not used anymore, you can
instead deactivate it. Aer the subaccount has been deactivated, it remains in the database but does not appear in
the list of subaccounts for selection on data entry forms.
You use the Subaccounts (GL203000) form to deactivate a subaccount.

To Deactivate a Subaccount
1. Open the Subaccounts (GL203000) form.
2. In the Search box at the top right of the form, type a segment value, and review the results to quickly find a
subaccount.
3. Click the row with the subaccount you want to deactivate.
4. In the Active column for the subaccount, clear the check box.
5. On the form toolbar, click Save.

Multiple Base Currencies

The topics of this chapter describe how to configure the support of multiple base currencies in one tenant and set
up the needed entities.

Multiple Base Currencies: General Information

To be able to set up companies with different base currencies in one tenant of Acumatica ERP, you need to
configure the multiple base currency functionality. This chapter describes how to prepare for the configuration and
how to configure the functionality to meet your business needs.

Learning Objectives
In this chapter, you will learn how to do the following:
• Enable the required system features
 Implementing Advanced Financials | 141

• Create a company with a base currency that is different from the base currency of the companies that exist
in the tenant

Applicable Scenarios
You configure multiple base currencies if you need to have multiple related companies that have different base
currencies but share preferences, list of items, and joint projects involving employees of multiple companies.

Scope of the Multiple Base Currency Functionality in Acumatica ERP

Multiple base currencies are supported for a limited set of financial areas—general ledger, accounts payable,
accounts receivable, cash management, currency management, sales orders, purchase orders, inventory, expense
receipts and claims, deferred revenue, fixed assets, and taxes. For the Multiple Base Currencies feature to be
enabled, the following features need to be enabled on the Enable/Disable Features (CS100000) form:
• Multicompany Support
• Multicurrency Accounting
• Customer and Vendor Visibility Restriction

The following features are not supported if the Multiple Base Currencies feature has been enabled:
• Purchase Requisitions
• Projects if the Multicurrency Projects feature is disabled
• Customer Portal
• Service Management
• Payroll
• Manufacturing
• Procore Integration
If the Multiple Base Currencies feature is enabled and you select a check box corresponding to one of
the listed features, the system displays an error message.
If one or all of the listed features are enabled and you select the check box corresponding to the
Multiple Base Currencies feature, the system displays an error message that the feature cannot be
enabled.

Workflow of the Implementation of Multiple Base Currencies

To implement the support of multiple base currencies in Acumatica ERP, you perform the following general steps:
• On the Enable/Disable Features (CS100000) form, you verify that the unsupported features are not in use
and enable the needed features: Multicompany Support, Multicurrency Accounting, and Customer and Vendor
Visibility Restriction.
• On the Companies (CS101500) form, you create a company and select a base currency for it. This process is
illustrated in Multiple Base Currencies: Implementation Activity.
• Optional: On the Company Groups (CS102500) form, you create a company group for companies with the
same base currency. This process is illustrated in Company Groups: Implementation Activity.
• On the Customers (AR303000) form, you limit the visibility of the needed customers to the companies or
company groups that work with the customers. This process is illustrated in Customer Visibility: To Restrict
Visibility to a Company.
• On the Vendors (AP303000) form, you limit the visibility of the needed vendors to the companies or company
groups that work with the vendors. This process is illustrated in Vendor Visibility: To Restrict Visibility to a
Branch.
 Implementing Advanced Financials | 142

Multiple Base Currencies: Configuration Prerequisites

Before starting to configure multiple base currencies, you should be sure that the needed features have been
enabled and entities have been created, as described in the following sections.

Enabling the Needed Features

On the Enable/Disable Features (CS100000) form, the Multibranch Support, Multicompany Support, Multicurrency
Accounting, and Customer and Vendor Visibility Restriction features must be enabled.
The following features that are not supported if the Multiple Base Currencies feature is enabled must be disabled:
• Deferred Revenue Management
• Contract Management
• Fixed Asset Management
• Dunning Letters
• Purchase Requisitions
• Projects, if the Multicurrency Projects feature is disabled
• Time Management
• Customer Portal
• Customer Management
• Service Management
• Payroll
• Manufacturing
• Commerce Integration
• Procore Integration

Configuring the System

You need to make sure the following tasks have been performed in Acumatica ERP before you begin to configure
multiple base currencies:
• On the User Roles (SM201005) form, the Branch SLCanada role has been defined and the gibbs, pasic and
johnson users have been added to the role on the Membership tab.
• On the Currencies (CM202000) form, the CAD currency has been defined.

Multiple Base Currencies: Implementation Activity

In this implementation activity, you will learn how to create a company with a base currency that is different from
the base currency of the companies in the tenant.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.
 Implementing Advanced Financials | 143

Story
Suppose that the management of SweetLife Fruits & Jams has decided to establish a related company in Canada
(SweetLife Canada). The company should have the Without Branches type and share the preferences and list of
items with SweetLife Fruits & Jams. However, the company should have a different base currency than SweetLife
Fruit & Jams has—Canadian dollar (CAD).
Acting as the implementation consultant, you need to create the needed company, specifying its base currency and
actual ledger. You will also create a cash account for the company and specify currency rates for CAD and USD.

Process Overview
In this activity, on the Enable/Disable Features (CS100000) form, you will disable the features that do not support
multiple base currencies and enable the needed features.

You will disable these features for training purposes. In a production environment, you should not
disable any features you are using, because you will not be able to enable them aer the Multiple Base
Currencies feature has been enabled.

On the Companies (CS101500) form, you will create a new company, specifying CAD as its base currency. You will
then create an actual ledger for the new company by clicking Create Ledger on the form toolbar. On the Currencies
(CM202000) form, you will review the settings of the base currency. On the Manage Financial Periods (GL503000)
form, you will open the financial periods for the new company.
On the Chart of Accounts (GL202500) form, you will create a GL account denominated in CAD, and on the Cash
Accounts (CA202000) form, you will create a CAD cash account to be used in documents originating from the new
SweetLife Canada company. On the Currency Management Preferences (CM101000) form, you will review and save
the preferences that will be used in the system. Finally, on the Currency Rates (CM301000) form, you will create
CAD-to-USD and USD-to-CAD rates that the system will use to convert amounts to and from the base currencies in
the system.

System Preparation
Before you start creating a company with the CAD base currency, launch the Acumatica ERP website, and sign in to
a company with the U100 dataset preloaded. You should sign in as Kimberly Gibbs with the gibbs username and the
123 password.

Step 1: Enabling the Needed Features and Disabling Unsupported Features

To disable the features that do not support multiple base currencies and enable the features that are needed for
the support of multiple base currencies, do the following:
1. Open the Enable/Disable Features (CS100000) form.
2. On the form, make sure that the Multibranch Support and Multicompany Support features have been
enabled.
3. On the form toolbar, click Modify to make it possible to change the set of selected features.
4. Clear the following check boxes:
• Service Management
• Manufacturing
• Purchase Requisitions (Inventory and Order Management group)
• Commerce Integration (Third Party Integrations group)
• Payroll
 Implementing Advanced Financials | 144

5. On the form toolbar, click Enable.

6. On the form toolbar, click Modify and select the following check boxes:
• Multicurrency Accounting (Standard Financials group)
• Customer and Vendor Visibility Restriction (Advanced Financials group)
• Multiple Base Currencies (Advanced Financials group)
• Multicurrency Projects (Projects group)
7. On the form toolbar, click Enable to enable the selected features.

Step 2: Creating a New Company

To create a new company with the CAD base currency, do the following:
1. Open the Companies (CS101500) form and click Add New Record on the form toolbar.

To open the form for creating a new record, type the form ID in the Search box, and on the
Search form, point at the form title and click New right of the title.

2. In the Summary area, specify the following settings:

• Company ID: SLCANADA
• Company Name: SweetLife Canada
• Company Type: Without Branches
3. In the Main Address section of the Company Details tab, specify the following address settings:
• City: Toronto
• Country: CA - Canada
• State: ON - Ontario
• Postal Code: M4E 2V5
4. In the Base Currency ID box (Base Currency Settings (Shared) section), select CAD.
5. In the Access Role box, select Branch SLCanada. This will make it possible for the implementation
consultant to access this company.

This access role has been preconfigured in the system and assigned to the gibbs user.

6. On the form toolbar, click Save.

Step 3: Creating a Ledger for the New Company

To create an actual ledger for the new company, do the following:
1. While you are still on the Companies (CS101500) form with the new company opened, click Create Ledger
on the form toolbar.
2. In the Create Ledger dialog box that opens, specify the following settings:
• Ledger ID: SLCANADA
• Description: SLCANADA Actual Ledger
3. Click Create to create this ledger and close the dialog box.
4. On the Ledgers tab, review the ledger you have created. Notice that the currency of the created ledger (CAD)
is the base currency you have specified for the company.
 Implementing Advanced Financials | 145

Step 4: Reviewing the Base Currency Settings

To review the company's base currency settings, do the following:
1. Open the Currencies (CM202000) form.
2. In the Currency ID box, select CAD.
3. In the Summary area, review the values in the Description, Currency Symbol, and Decimal Precision
boxes for the base currency you selected for the company in Step 2 of this activity.
Notice that the Active and Use for Accounting check boxes are selected automatically and are unavailable
for editing. These check boxes are always selected and unavailable when the currency is the base currency
of one of the companies in the tenant, and CAD is the base currency for the SLCANADA company.

Step 5: Opening Financial Periods for the New Company

To open the financial periods for the new company, do the following:
1. Open the Company Financial Calendar (GL201100) form.
2. In the Summary area, specify the following settings:
• Company: SLCANADA
• Financial Year: 2023
3. On the More menu, click Open Periods.
The Manage Financial Periods (GL503000) form opens with Open selected in the Action box of the Summary
area.
4. On the form toolbar, click Process All.
The system opens the Processing dialog box and runs the process of opening periods.
5. Close the Processing dialog box.

Step 6: Creating a Cash Account

To create a cash account denominated in CAD, do the following:
1. Open the Chart of Accounts (GL202500) form.
2. On the form toolbar, click Add Row, and in the added row, specify the following settings:
• Account: 10215
• Account Class: CASHASSET
• Description: Checking Account CAD
• Post Option: Detail
• Currency: CAD
• Revaluation Rate Type: SPOT
3. On the form toolbar, click Save to save your changes.
4. Open the Cash Accounts (CA202000) form.
5. On the form toolbar, click Add New Record, and in the Summary area, specify the following settings:
• Cash Account: 10215SL
• Account: 10215 (Checking Account CAD)
• Branch: SLCANADA
• Currency: CAD (selected automatically)
 Implementing Advanced Financials | 146

• Curr. Rate Type: SPOT

6. On the Payment Methods tab, click Add Row on the table toolbar, and specify the following settings for the
added row:
• Payment Method: WIRE
• Use in AP: Selected
• Use in AR: Selected
7. On the Entry Types tab, click Add Row on the table toolbar, and in the Entry Type ID column of the added
row, select BANKFEE.
8. Click Add Row on the table toolbar, and in the Entry Type ID column of the added row, select INTEREST.
9. On the form toolbar, click Save to save your changes.

Step 7: Reviewing the Currency Management Preferences

To review and save the currency management preferences that will be used in the system, do the following:
1. Open the Currency Management Preferences (CM101000) form.
2. In the Default Rate Types section, review the rate type (SPOT) specified by default for subledgers.
3. Make sure that the Automatically Post to GL on Release check box is selected.
4. On the form toolbar, click Save to save the preferences.

Step 8: Creating Currency Rates

To create currency rates that the system will use to convert amounts from the base currency of one company into
the base currency of another company, do the following:
1. Open the Currency Rates (CM301000) form.
2. In the To Currency box, select USD. This is the currency to which the conversion with the specified exchange
rate should be performed.
3. In the Effective Date box, enter 1/1/2023.
4. On the Currency Rate Entry tab, click Add Row on the table toolbar, and specify the following settings for
the added row:
• From Currency: CAD
• Currency Rate Type: SPOT
• Currency Effective Date: 1/1/2023
• Currency Rate: 1.2974
• Mult./Div.: Divide
The From Currency box specifies the currency from which the conversion should be performed by using the
Currency Rate and the operation selected in the Mult./Div. box. In this case, the conversion rule from CAD
to USD is the following: 1 CAD = 1 / 1.2974 USD.
5. On the form toolbar, click Save to save your changes.
The created rate is effective starting on January 1, 2023, and does not have an expiration date. The system
will use this rate for converting the amounts in CAD into USD in any document with a date of January 1, 2023
or later.
6. In the To Currency box, select CAD.
7. In the Effective Date box, enter 1/1/2023.
8. On the Currency Rate Entry tab, click Add Row on the table toolbar, and specify the following settings for
the added row:
 Implementing Advanced Financials | 147

• From Currency: USD

• Currency Rate Type: SPOT
• Currency Effective Date: 1/1/2023
• Currency Rate: 1.2974
• Mult./Div.: Multiply
9. On the form toolbar, click Save to save your changes.

Company Groups

This chapter describes how to create a company group so that you can restrict the visibility of customers and
vendors to the companies included in this group.

Company Groups: General Information

In Acumatica ERP, a company group is an entity that includes two or more companies that can have access to the
same set of customer and vendor records and have the same base currency. For reporting purposes, a company
can be included in more than one group.

Learning Objectives
In this chapter, you will learn how to do the following:
• Create a company group and include companies in it
• Restrict the visibility of a customer and vendor to this company group

Applicable Scenarios
You may want to set up a company group in the following cases:
• If multiple related companies need to have access to the same set of customer and vendor records
• If you are using the Multiple Base Currencies feature and you need to limit the usage of customers and
vendors to an entity (a company, branch, or company group)

Creation of a Company Group

You perform the following configuration steps to create a company group:
1. On the Enable/Disable Features (CS100000) form, you enable the Multicompany Support, Multicurrency
Accounting, and Customer and Vendor Visibility Restriction features.
2. On the Company Groups (CS102500) form, you create a company group and add companies to it.
If the Multiple Base Currencies feature is enabled, when you are creating a new company group on the
Company Groups form, the Currency ID setting is required. The box is empty by default, and you can select
the currency from the list of active currencies. The currency can be changed for an empty company group (a
company group with no companies listed) only if the company group is not associated with any customer or
vendor. If the Multiple Base Currencies feature is disabled, the Currency ID box is unavailable and contains
the base currency used for all companies in the tenant.
You can add to the group only companies that have the same base currency as the currency of the group.
 Implementing Advanced Financials | 148

3. Optional: On the Companies (CS101500) form, you can include any company in the group or in multiple
groups.
If any company is included in multiple groups, you specify the primary company group for the company. In
the Company/Branch box in report forms and inquiry forms, the company will be highlighted under this
group in the list, although it will be listed under all the groups where it is included.
4. On the Customers (AR303000) and Vendors (AP303000) forms, you can restrict the visibility of a customer or
vendor record to the company group you created by selecting this group in the Restrict Visibility To box on
the Financial tab.

On the Company Groups form, if you delete a company group that restricts the visibility of customers or vendors,
the system displays a warning message indicating that this visibility restriction will be deleted as well.
For details on managing visibility restrictions for customers, see Visibility of Customer Records. For details on
managing visibility restrictions for vendors, see Visibility of Vendor Records.

Configuration Example
The following diagram illustrates an example of the configuration of a company group. This configuration is
described in detail in Company Groups: Implementation Activity.

In the diagram, three of the related companies are included in the same company group and the visibility of the
CoffeeShop customer and the GoodFruits vendor has been restricted to this company group. Thus, the CoffeeShop
and GoodFruits vendors can be used only in the documents having the SweetLife, Muffins & Cakes, or ToadGreen
branch as the original branch of the document. Only the users that are included in the access roles associated with
the SweetLife, Muffins & Cakes, or ToadGreen branch can view and edit the CoffeeShop record on the Customers
(AR303000) form and the GoodFruits record on the Vendors (AP303000) form. That is, only the users belonging to
the access roles specified for the SweetLife, Muffins & Cakes, or ToadGreen branch can create documents for this
customer and vendor and view and edit the customer or vendor's records (if the users have the appropriate rights
on the needed forms).
 Implementing Advanced Financials | 149

Company Groups: Configuration Prerequisites

Before starting to create a company group, you must be sure that the system has been configured properly and that
all required entities have been created, as described in the following sections.

Enabling the Needed Features

On the Enable/Disable Features (CS100000) form, the Multibranch Support, Multicompany Support, Multicurrency
Accounting, and Customer and Vendor Visibility Restriction features must be enabled.

Configuring the System

You need to make sure the following tasks have been performed in Acumatica ERP before you begin to create a
company group:
• On the Companies (CS101500) form, the companies that you want to include in the new company group
have been configured.
• On the Customers (AR303000) form, the customers whose visibility you want to restrict to the new company
group have been defined.
• On the Vendors (AP303000) form, the vendors whose visibility you want to restrict to the new company
group have been defined.

Company Groups: Implementation Activity

In this implementation activity, you will learn how to create a company group, add companies to it, and restrict the
visibility of a customer and a vendor to this company group.

Story
Three related companies have been configured in the U100 dataset—SweetLife Fruits & Jams, Muffins & Cakes,
and ToadGreen Building Group. The first two companies are involved in food production, while the third is a
construction company. All three companies are using the same base currency—the United States dollar (USD). The
SweetLife and Muffins & Cakes companies share some customers and vendors, FourStar Coffee & Sweets Shop
(COFFEESHOP) and Good Fruits More (GOODFRUITS) among them. Also, the SweetLife Canada company with the
CAD (Canadian dollar) base currency has been implemented.
Acting as an implementation consultant, you need to do the following:
• Create a company group that includes all the companies that use the USD base currency: SweetLife, Muffins
& Cakes, and ToadGreen Building Group
• Restrict the COFFEESHOP customer and GOODFRUITS vendor to this company group

Configuration Overview
In the U100 dataset, the following configuration task has been performed to prepare the system for this activity:
On the Companies (CS101500) form, the SweetLife Fruits & Jams, Muffins & Cakes, and ToadGreen Building Group
companies have been configured.
 Implementing Advanced Financials | 150

Process Overview
In this activity, on the Company Groups (CS102500) form, you will create a company group and add three
companies to it. On the Customers (AR303000) form, you will restrict the visibility of the COFFEESHOP customer to
the new group, and on the Vendors (AP303000) form, you will restrict the visibility of the GOODFRUITS vendor to the
new group.

System Preparation
Before you start creating a company group, sign in to a company with the U100 dataset preloaded. You should sign
in as a system administrator with the gibbs username.
As a prerequisite activity, be sure that on the Enable/Disable Features (CS100000) form, the Multicompany Support,
Multicurrency Accounting, Customer and Vendor Visibility Restriction, and Multiple Base Currencies features have
been enabled, as described in Multiple Base Currencies: Implementation Activity.
On the Companies form, be sure that the SweetLife Canada company has been configured, as described in Multiple
Base Currencies: Implementation Activity.

Step 1: Creating a Company Group

To create a company group, do the following:
1. Open the Company Groups (CS102500) form.

To open the form for creating a new record, type the form ID in the Search box, and on the
Search form, point at the form title and click New right of the title.

2. On the form toolbar, click Add New Record.

3. In the Summary area, specify the following settings:
• Group ID: USCOMP
• Group Name: U.S. Companies
• Currency ID: USD
4. On the table toolbar, click Add Row, and in the Company ID column of the added row, select MUFFINS.
5. Click Add Row, and in the Company ID column of the row, select SWEETLIFE.
6. Click Add Row, and in the Company ID column of the row, select TOADGREEN.
7. On the form toolbar, click Save to save your changes.

Step 2: Restricting the Visibility of a Customer to the Company Group

To restrict the visibility of the COFFEESHOP customer to the new company group, do the following:
1. Open the Customers (AR303000) form.
2. In the Customer ID box, select COFFEESHOP.
3. In the Restrict Visibility To box on the Financial tab, select USCOMP.
4. On the form toolbar, click Save to save your changes.

Step 3: Restricting the Visibility of a Vendor to the Company Group

To restrict the visibility of the GOODFRUITS vendor to the new company group, do the following:
 Implementing Advanced Financials | 151

1. Open the Vendors (AP303000) form.

2. In the Vendor ID box, select GOODFRUITS.
3. In the Restrict Visibility To box on the Financial tab, select USCOMP.
4. On the form toolbar, click Save to save your changes.

Visibility of Customer Records

This chapter describes how to control the visibility of customer records for a particular company or company
branch in Acumatica ERP.

Customer Visibility: General Information

When multiple companies with their own accounting departments are configured within the same tenant, you may
want to limit access to customer accounts so that they can be viewed by only employees of a particular company,
branch, or company group and used in the documents originating from these entities.
If the Multiple Base Currencies feature is enabled on the Enable/Disable Features (CS100000) form, the Restrict
Visibility To setting on the Financial tab of the Customers (AR303000) form is required for regular customers.
You should associate each customer with an appropriate entity by selecting the entity in the Restrict Visibility
To box. The base currency of the entity with which the customer is associated will be the currency in which the
system stores the customer's balance and credit limit. As a result, customers can be used only in the transactions
originating from the branches that have the same base currency as the currency of the entity that is associated
with the customer.

Learning Objectives
In this chapter, you will learn how to do the following:
• Restrict the visibility of a customer for a particular company
• Explore how customers can be accessed by various users based on these restrictions
• Update the Restrict Visibility To setting of customers by using an import scenario

Applicable Scenarios
You may want to restrict the visibility of customer records in the following cases:
• You have customers that work with a particular entity (a company, a branch, or a company group), and you
do not want employees of other companies or branches to have access to the entity.
• You are using the Multiple Base Currencies feature, and you need to limit the usage of customers to an entity
(a company, branch, or a company group).

Restricted Visibility of Customer Records

You use the Restrict Visibility To box on the Financial tab of the Customers (AR303000) form to control the
visibility of the selected customer. A customer in Acumatica ERP can be associated with one of the following:
• A branch: The customer is associated with a branch (that is, the visibility of the customer is limited to
the branch) if the branch is selected in the Restrict Visibility To box for the customer. In this case, the
customer can be accessed by users assigned to the role specified for the branch in the Access Role box of
 Implementing Advanced Financials | 152

the Branch Details tab (Configuration Settings section) of the Branches (CS102000) form. The customer
can be selected in documents originating from this branch.

The branch where a particular document has originated is referred to as the originating branch
of the document. By default, the originating branch is the branch to which the user is signed
in during document creation; this value can be overridden. In the documents associated with
a customer, the default value of the originating branch—the Branch box on the Financial tab
of the Invoices and Memos (AR301000) form—is copied from the default branch specified for
the customer in the Default Branch box on the Shipping tab of the Customers form. If the
default branch is not specified, the current branch will be used as the originating branch of a
document.

• A company: The customer is associated with a company (that is, the visibility of the customer is limited
to the company) if the company is selected in the Restrict Visibility To box for the customer. In this case,
the customer can be accessed by a user that has access to at least one of the company’s branches (or
to the company if it has no branches). That is, the customer can be accessed by a user with the access
role specified in the Access Role box (Configuration Settings section) on the Branch Details tab of the
Branches form for the branch, or the Company Details tab of the Companies (CS101500) form for the
company. The customer can be selected in documents originating from any branch of the company.
• A company group: If a company group has been set up in the system, as described in Company Groups:
Implementation Activity, the customer can be associated with this company group if the company group is
selected in the Restrict Visibility To box for a customer. With the visibility of the customer restricted to a
company group, the customer can be accessed by a user that has access to at least one of the companies
included in the group. The customer can be selected in documents originating from any branch of any
company included in the group.
• No entity: If the customer is not associated with a branch, company, or company group (that is, if the
Restrict Visibility To box is le blank), it can be accessed by any user. The customer can be selected in
documents originating from any branch.
If you want to control customer visibility for all customers of a particular customer class, you use the Restrict
Visibility To box on the General tab of the Customer Classes (AR20100) form similarly to specify the visibility for
the class as a whole. When a new customer of the class is created, this setting is used as the default setting for the
customer, but you can override it.
These capabilities are available if the Customer and Vendor Visibility Restriction feature has been enabled on the
Enable/Disable Features (CS100000) form. The feature can be disabled at any time. If the feature is disabled, the
system will no longer apply any of the specified visibility restrictions to customers. For details on setting up vendor
visibility, see Visibility of Vendor Records. For details on setting up customer and vendor visibility for a company
group, see Company Groups.

If you have the Row-Level Security feature enabled and any restriction groups have been configured
in the system, they will be applied in addition to the customer visibility restriction functionality. For
details on restriction groups, see Customers: Security Configuration.

Configuration Example
The following diagram illustrates an example of restricted access to customer records.
 Implementing Advanced Financials | 153

The diagram shows that the user in the Company X and Company Y access roles can work with Customer B (which is
associated with Company X) and Customer C (which is associated with Company Y). Additionally, the user can work
with Customer A; access to this customer is not limited to any company or branch because the Restrict Visibility
To box on the Customers (AR303000) form is empty. However, the user cannot view the Customer D record, because
this customer is associated with Company Z, to which the user does not have access based on the user's assigned
roles.
In the system, users can create documents for the following customers:
• Customer A if Company X, Company Y, or Company Z is the company with the originating branch
• Customer B if Company X is the company with the originating branch
• Customer C if Company Y is the company with the originating branch
• Customer D if Company Z is the company with the originating branch

Customer Visibility: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for restricting
the visibility of customer records, and to understand (and change, if needed) the settings that affect the processing
workflow.

Implementation Checklist
We recommend that before you initially restrict visibility of customer records, you make sure the needed features
have been enabled, settings have been specified, and entities have been created, as summarized in the following
checklist.
 Implementing Advanced Financials | 154

Form Criteria to Check

Enable/Disable Features (CS100000) Make sure the minimal features have been enabled, as described
in Company Without Branches: General Information, Company with
Branches that Do Not Require Balancing: General Information, and
Company with Branches that Require Balancing: General Informa-
tion.

Make sure that the Multibranch Support feature has been en-
abled, if you need to restrict the visibility of customer records for
particular branches.

Enable the Customer and Vendor Visibility Restriction feature to

perform Customer Visibility: To Restrict Visibility to a Company.

Enable the Multicurrency Accounting and Multiple Base Currencies

features to perform Customer Visibility: To Restrict Visibility to a
New Company.

Customer Classes (AR201000) Be sure that the customer classes whose visibility you want to re-
strict have been defined.

Customers (AR303000) Be sure that the customer accounts have been defined for the
customers whose visibility you want to restrict.

Branches (CS102000) Make sure that for each branch to which the visibility of any cus-
tomers should be limited, the appropriate role associated with
the branch is specified in the Access Role box (Configuration
Settings section) on the Branch Details tab.

Companies (CS101500) Make sure that for each company to which the visibility of any
customers should be limited, the appropriate role associated
with the company is specified in the Access Role box (Configura-
tion Settings section) on the Company Details tab.

Users (SM201010) or User Roles (SM201005) Make sure that the needed users have been assigned to the roles
specified for branches and companies. For details, see User
Roles: General Information.

Validation of Configuration
To make sure that all configuration has been performed correctly, we recommend that in your system, you perform
instructions similar to those described in Customer Visibility: To Restrict Visibility to a Company and Customer
Visibility: To Restrict Visibility to a New Company.

Customer Visibility: To Restrict Visibility to a Company

In this implementation activity, you will learn how to restrict the visibility of a customer to a particular company.
 Implementing Advanced Financials | 155

Story
Suppose that the management of Muffins & Cakes has decided to implement the restriction of customer visibility.
One of the customers, Candyy Cafe, works with the Muffins & Cakes company, and users who are employees
of other companies should not have access to this customer record. In other words, aer the implementation
of this restriction, Nenad Pasic, an accountant in SweetLife and Muffins & Cakes, should be able to access the
CANDYY customer and Anna Johnson, an accountant at all branches of SweetLife, should not be able to access this
customer.
Acting as a system administrator, you need to restrict the visibility of the CANDYY customer to the MUFFINS
company only and make sure the appropriate access role has been specified for the branches of this company. You
then need to verify that a user without this access role cannot access the customer, and that a user with this access
role can access the customer.

Configuration Overview
In the U100 dataset, for the purposes of this activity, the following tasks have been performed:
• On the Enable/Disable Features (CS100000) form, the Multibranch Support, Multicompany Support, and
Customer and Vendor Visibility Restriction features have been enabled.
• On the Branches (CS102000) form, for the MRETAIL branch, the Branch MRetail role associated with the
branch is specified in the Access Role box (Configuration Settings section) on the Branch Details tab.
• On the Users (SM201010) form, for the pasic login, the Branch MHead and Branch MRetail roles are selected
on the Roles tab. For the johnson login, the Branch MHead and Branch MRetail roles are not selected on the
Roles tab.
• On the Customers (AR303000) form, the CANDYY customer account has been configured.

Process Overview
In this activity, on the Companies (CS101500) form, you will make sure that the access roles for the MHEAD and
MRETAIL branches have been set up, and on the Users (SM201010) form, you will make sure that they have been
assigned to one of the users. On the Customers (AR303000) form, you will set up a visibility restriction for the
needed customer record. You will sign in to the tenant by using a username that is not assigned to any of the
needed branch access role and then a username that is assigned to the branch access roles; in both cases, you will
check for the ability to view the CANDYY customer. Finally, you will sign in to the MRETAIL branch and on create a
document on the Invoices and Memos (AR301000) form, where you will select a branch of the MUFFINS company as
an originating branch of the document.

System Preparation
Before you start restricting the visibility of a customer record, sign in to a company with the U100 dataset preloaded
as a system administrator by using the following credentials:
• Username: gibbs
• Password: 123

Step 1: Reviewing Branch Access Roles of the Users

To review the access roles assigned to the pasic and johnson users, do the following:
1. Open the Companies (CS101500) form.
2. In the Company ID box, select MUFFINS.
3. Open the Branches tab.
 Implementing Advanced Financials | 156

Notice that the access roles for the branches of this company–Branch MHead and Branch MRetail–are
specified in the Access Role column.
4. Open the Users (SM201010) form.
5. In the Login box in the Summary area, select pasic.
6. In the table on the Roles tab, review the access roles assigned to this user. The Branch MHead and Branch
MRetail access roles have been assigned to this user (the Selected check boxes to the le of their rows are
selected).
7. In the Login box, select johnson.
8. In the table on the Roles tab, review the access roles assigned to this user. Notice that the Branch MHead
and Branch MRetail access roles have the Selected check box cleared for their rows; these access roles have
not been assigned for this user.

Step 2: Restricting the Visibility of a Customer Record

To restrict the visibility of the CANDYY customer record, do the following:
1. Open the Customers (AR303000) form.
2. In the Customer ID box, select CANDYY.
3. On the Financial tab (Financial Settings section), select MUFFINS - Muffins & Cakes in the Restrict Visibility
To box.
4. On the form toolbar, click Save to save your changes.

Step 3: Reviewing the Visibility of the Customer Record

To review the visibility of the customer record, do the following:
1. Sign in to the tenant as a user who is not assigned the access role of the branch by using the following
credentials:
• Username: johnson
• Password: 123
2. Open the Customers (AR303000) form.
3. In the Customer ID box of the Summary area, open the lookup table and attempt to find the CANDYY
customer.
Notice that the CANDYY customer is not listed and you cannot find it by using the Search box; this customer
is not visible for the current user, because this user is assigned to the role that has access to the SweetLife
Fruits & Jams company only and is not assigned to the Branch MHead and Branch MRetail roles, which are
the access roles of the company specified for the customer.
4. Sign in to the tenant as a user who is assigned the access roles of the company's branches by using the
following credentials:
• Username: pasic
• Password: 123
5. Open the Customers form.
6. In the Customer ID box of the Summary area, open the lookup table and attempt to find the CANDYY
customer. Notice that the CANDYY customer is listed and thus is visible for the current user, because the user
is assigned to the Branch MHead and Branch MRetail roles, which are the access roles for the branches of the
company specified for the customer.
 Implementing Advanced Financials | 157

7. On the Shipping tab, review the value in the Default Branch box. The default branch for this customer is not
specified. You can select either MHEAD or MRETAIL because the customer's visibility has been restricted to
the company with these branches.
On the Invoices and Memos (AR301000) form, when you are creating an AR document and select a customer,
the system automatically populates the Branch box on the Financial Details tab with the default branch
of the selected location. (This branch is considered the originating branch of the document.) If the default
branch is not specified, the originating branch is the current branch to which you are signed in.

Step 4: Selecting the Originating Branch in a Document for the Customer with Restricted Visibility
To create a document for the customer whose visibility has been restricted to the Muffins & Cakes company, do the
following:
1. On the Company and Branch Selection menu, on the top pane of the Acumatica ERP screen, select the
Muffins Retail Shop branch.
2. Open the Invoices and Memos (AR301000) form.

To open the form for creating a new record, type the form ID in the Search box, and on the
Search form, point at the form title and click New right of the title.

3. Click Add New Record on the form toolbar and specify the following settings in the Summary area:
• Type: Invoice
• Customer: CANDYY
You can select this customer whose visibility has been restricted to the MUFFINS company because you
are signed in to a branch of this company.
4. On the Financial tab, notice that in the Branch box MRETAIL is selected. This is the originating branch of the
document.
5. In the Branch box, select MHEAD. Because you restricted the customer's visibility to the MUFFINS company,
you can select this value for the originating branch.
6. In the Branch box, select HEADOFFICE. The system displays an error message that the use of this customer is
restricted in the selected branch.

For the purposes of this activity, you do not need to further process this document.

Customer Visibility: To Restrict Visibility to a New Company

The following activity will walk you through the process of restricting the visibility of a customer to a particular
company with a base currency that is different from the base currency of the other companies in the tenant.

Story
Suppose that the management of SweetLife Fruits & Jams has decided to implement multiple base currencies in
Acumatica ERP. The implementation consultant has already set up a company with the CAD base currency and
added all the companies that use the USD base currency to one company group. The company using the CAD base
currency—SweetLife Canada—should work only with the Canadian customers.
Acting as the implementation consultant, you need to limit the visibility of EASYDINER (a Canadian customer) to the
SweetLife Canada company. You then need to verify that this customer can be selected in the documents for this
 Implementing Advanced Financials | 158

company. To do this, you need to process a document and review the transaction posted to the general ledger. You
will then update the settings of the rest of the customers by using an import scenario.

Configuration Overview
In the U100 dataset, the following configuration tasks have been performed to prepare the system for this activity:
• On the Enable/Disable Features (CS100000) form, the Multibranch Support, Multicompany Support, Customer
and Vendor Visibility Restriction, Multicurrency Accounting, and Multiple Base Currencies features have been
enabled.
• On the Users (SM201010) form, for the gibbs login, the Branch SLCanada role is selected on the Roles tab.
For the johnson login, the Branch SLCanada role is not selected on the Roles tab.
• On the Customers (AR303000) form, the EASYDINER customer has been configured.
• On the Import Scenarios (SM206025) form, the Import Customers with Restricted Visibility import scenario has
been configured.

Process Overview
In this activity, you will restrict the visibility of a customer to the SweetLife Canada company on the Customers
(AR303000) form. You will then sign in as a user who does not have access to the SweetLife Canada company
and make sure that the customer is not visible for this user. You will sign in as a user with access to SweetLife
Canada company, and on the Invoices and Memos (AR301000) form, you will process a document for the EASYDINER
customer, selecting SweetLife Canada as the originating branch.
Finally, on the Import by Scenario (SM206036) form, you will run a preconfigured import scenario to update the
Restrict Visibility To setting for regular customers.

System Preparation
To prepare the system, do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. You should
sign in as Kimberly Gibbs by using the gibbs username and the 123 password.
2. In the company to which you are signed in, be sure that you have configured the SweetLife Canada
company, as described in Multiple Base Currencies: Implementation Activity, which is a prerequisite activity.
3. On the Company Groups (CS102500) form, be sure that the USCOMP company group has been added. For
details, see Company Groups: Implementation Activity.
4. On the Branches (CS102000) form, for the SLCANADA branch, be sure that the Branch SLCanada role, which
is associated with the branch, is specified in the Access Role box (Configuration Settings section) on the
Branch Details tab.
5. On the Branches form, be sure that the MHEAD branch has been extended as a customer. For details, see
Intercompany Sales: Implementation Activity.

Step 1: Restricting the Visibility of the Customer

To restrict the visibility of the EASYDINER customer to SweetLife Canada, do the following:
1. Open the Customers (AR303000) form.
2. In the Customer ID box, select EASYDINER.
Notice that the customer class of this customer is INTLCA (Canadian Customers).
3. On the Financial tab, in the Restrict Visibility To box, select SLCANADA.
4. In the Currency ID box, select CAD.
 Implementing Advanced Financials | 159

Notice that multiple boxes in the Summary area, Financial Settings section, and Credit Verification Rules
section now have the currency symbol of the Canadian dollar (C$) displayed next to them. This means that
the system will store the balance of this customer in CAD.
5. On the form toolbar, click Save.

Step 2: Reviewing the Visibility of the Customer

To review how the visibility of the customer has been restricted, do the following:
1. Sign in to the tenant as a user who is not assigned the access role of the Branch SLCanada branch by using
the following credentials:
• Username: johnson
• Password: 123
2. Open the Customers (AR303000) form.
3. In the Customer ID box of the Summary area, open the lookup table, and attempt to find the EASYDINER
customer.
Notice that the EASYDINER customer is not listed and that you cannot find it by using the Search box. This
customer is not visible for the current user, because this user is assigned to the role that has access to the
SweetLife Fruits & Jams company only and is not assigned to the Branch SLCanada role, which is the access
role of the company specified for the customer.

Step 3: Processing an Invoice for the Customer with Restricted Visibility

To process an invoice for the EASYDINER customer, which has restricted visibility to the branch, do the following:
1. Sign in to the tenant as a user who is assigned the access role of the Branch SLCanada branch by using the
following credentials:
• Username: gibbs
• Password: 123
2. On the Company and Branch Selection menu, on the top pane of the Acumatica ERP screen, select the
SweetLife Canada company.
3. Open the Invoices and Memos (AR301000) form.

To open the form for creating a new record, type the form ID in the Search box, and on the
Search form, point at the form title and click New right of the title.

4. Click Add New Record on the form toolbar, and specify the following settings in the Summary area:
• Type: Invoice
• Date: 1/30/2023
• Customer: EASYDINER
You can select this customer (whose visibility has been restricted to the SweetLife Canada company)
because you are signed in to this company and the system has filled in the original branch of the
document with SweetLife Canada.
5. On the Financial tab, notice that in the Branch box, SLCANADA is selected. This is the originating branch of
the document.
6. On the same tab, specify the following settings:
• Payment Method: WIRE
• Cash Account: 10215SL
7. On the Details tab, click Add Row on the table toolbar, and specify the following settings for the added row:
 Implementing Advanced Financials | 160

• Branch: SLCANADA (inserted automatically)

• Transaction Descr.: Online training
• Ext. Price: 380
8. On the form toolbar, click Remove Hold, and then click Release to release the invoice.
9. On the Financial tab, click the link in the Batch Nbr. box to review the generated GL transaction on the
Journal Transactions (GL301000) form.
The transaction has been posted for the SLCANADA branch, and the transaction currency specified in the
Currency box is CAD because you selected this currency on the Customers (AR303000) form.

Step 4: Updating Customer Settings by Using an Import Scenario

Because the Multiple Base Currencies feature has been enabled aer some customers were created in the system
and the Restrict Visibility To box became required, this box has to be filled in for all the customers. You can use
an import scenario to fill in the box for multiple customers quickly and easily. To update the Restrict Visibility To
setting for regular customers, do the following:
1. Open the Import by Scenario (SM206036) form.
2. In the Name box, select Import Customers with Restricted Visibility.
3. On the form toolbar, click Prepare.
The system has uploaded the records from the source Excel file on the Prepared Data tab.

This file is also attached to the Excel data provider on the Data Providers (SM206015) form
and the Import Customers with Restricted Visibility import scenario on the Import Scenarios
(SM206025) form.

4. On the form toolbar, click Import to update the customer records.

Notice that for all records on the Prepared Data tab, the system has selected the Processed check box.
5. Open the Customers (AR303000) form.
6. In the Customer ID box, select ABAKERY.
7. On the Financial tab, notice that the USCOMP - U.S. Companies option is now selected in the Restrict
Visibility To box in the Financial Settings section. This setting means that this customer can be used in
documents originating from companies in the USCOMP company group.
8. In the Customer ID box, select MHEAD, which was not updated by the import scenario.
9. On the Financial tab, notice that the Restrict Visibility To box, which is optional, is empty. This is because
this customer has been extended from a branch, as described in Intercompany Sales: Implementation Activity,
and can be used by all companies with different base currencies in the tenant.

Visibility of Vendor Records

This chapter describes how to control the visibility of vendor records for a particular company or a company
branch.

Vendor Visibility: General Information

When multiple companies with their own accounting departments are configured within the same tenant, you may
want to restrict the visibility of vendor accounts to employees of a particular company, branch, or company group.
 Implementing Advanced Financials | 161

If the Multiple Base Currencies feature is enabled on the Enable/Disable Features (CS100000) form, the Restrict
Visibility To setting on the Financial tab of the Vendors (AP303000) form becomes required for regular vendors.
You should associate each vendor with an appropriate entity by selecting the entity in the Restrict Visibility To
box. The base currency of the entity with which the vendor is associated will be the currency in which the system
stores the vendor's balance. As a result, vendors can be used only in the transactions originating from the branches
that have the same base currency as the base currency of the entity that is associated with the vendor.

Learning Objectives
In this chapter, you will learn how to do the following:
• Restrict the visibility of a vendor to a particular branch
• Explore how vendors can be accessed by various users based on these restrictions
• Update the Restrict Visibility To setting of vendors by using an import scenario

Applicable Scenarios
You may want to restrict the visibility of vendor records in the following cases:
• You have vendors that work with a particular branch, company, or a company group, and you do not want
employees of other companies to have access to them.
• You are using the Multiple Base Currencies feature, and you need to limit the usage of vendors to an entity (a
company, branch, or a company group).

Restricted Visibility of Vendor Records

You use the Restrict Visibility To box on the Financial tab of the Vendors (AP303000) form to control the visibility
of the selected vendor. A vendor in Acumatica ERP can be associated with one of the following:
• A branch: The visibility of the vendor is restricted to a branch (that is, the vendor is associated with the
branch) if the branch is selected in the Restrict Visibility To box for the vendor. In this case, the vendor
can be accessed by users assigned to the role specified for the branch in the Access Role box of the Branch
Details tab (Configuration Settings section) of the Branches (CS102000) form. The vendor can be selected
in documents originating from this branch.

The branch where a particular document has originated is referred to as the originating branch
of the document. By default, the originating branch is the branch to which the user is signed
in during document creation; this value can be overridden. In the documents associated with
a vendor, the default value of the originating branch—the Branch box on the Financial tab of
the Bills and Adjustments (AP301000) form—is copied from the default branch specified for the
vendor in the Default Branch box on the Purchase Settings tab of the Vendors (AP303000)
form. If the default branch is not specified, the current branch will be used as the originating
branch of a document.

• A company: The visibility of the vendor is restricted to a company (that is, the vendor is associated with the
company) if the company is selected in the Restrict Visibility To box for the vendor. In this case, the vendor
can be accessed by a user that has access to at least one of the company’s branches (or to the company
if it has no branches). That is, the vendor can be accessed by a user with the access role specified in the
Access Role box (Configuration Settings section) on the Branch Details tab of the Branches form for the
branch, or the Company Details tab of the Companies (CS101500) form for the company. The vendor can be
selected in documents originating from any branch of the company.
• A company group: If a company group has been set up in the system, as described in Company Groups:
Implementation Activity, the vendor can be associated with this company group if the company group is
selected in the Restrict Visibility To box for the vendor. With the visibility of the vendor restricted to a
company group, the vendor can be accessed by a user that has access to at least one of the companies
 Implementing Advanced Financials | 162

included in the group. The vendor can be selected in documents originating from any branch of any
company included in the group.
• No entity: If the visibility of the vendor is not restricted to a branch, company, or company group (that is,
if the Restrict Visibility To box is le blank), it can be accessed by any user. The vendor can be selected in
documents originating from any branch.
If you want to control vendor visibility for all vendors of a particular vendor class, you use the Restrict Visibility
To box on the General tab of the Vendor Classes (AP20100) form similarly to specify the visibility for the class as a
whole. When a new vendor of the class is created, this setting is used as the default setting for the vendor, but you
can override it.
These capabilities are available if the Customer and Vendor Visibility Restriction feature has been enabled on the
Enable/Disable Features (CS100000) form. The feature can be disabled at any time. If the feature is disabled, the
system will no longer apply any of the specified visibility restrictions to vendors. For details on setting up customer
visibility, see Visibility of Customer Records. For details on setting up customer and vendor visibility for a company
group, see Company Groups.

If any restriction groups have been configured in the system, they will be applied in addition to the
vendor visibility restriction functionality. For details on restriction groups, see Vendor Security.

Configuration Example
The following diagram illustrates an example of restricted access to vendor records.

The diagram shows that the user in the Company X and Company Y access roles can work with Vendor B (which is
associated with Company X) and Vendor C (which is associated with Company Y). Additionally, the user can work
with Vendor A; access to this vendor is not limited to any company or branch because the Restrict Visibility To box
on the Vendors (AP303000) form is empty. However, the user cannot view the Vendor D record, because this vendor
is associated with Company Z, to which the user does not have access based on the user's assigned roles.
In the system, users can create documents for the following vendors:
• Vendor A if Company X, Company Y, or Company Z is the company with the originating branch
• Vendor B if Company X is the company with the originating branch
 Implementing Advanced Financials | 163

• Vendor C if Company Y is the company with the originating branch

• Vendor D if Company Z is the company with the originating branch

Vendor Visibility: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for restricting
the visibility of vendor records, and to understand (and change, if needed) the settings that affect the processing
workflow.

Implementation Checklist
We recommend that before you initially restrict visibility of vendors, you make sure the needed features have been
enabled, settings have been specified, and entities have been created, as summarized in the following checklist.

Form Criteria to Check

Enable/Disable Features (CS100000) Make sure the minimal features have been enabled, as described
in Company Without Branches: General Information, Company with
Branches that Do Not Require Balancing: General Information, and
Company with Branches that Require Balancing: General Informa-
tion.

Make sure that the Multibranch Support, Multicompany Support,

and Customer and Vendor Visibility Restriction features have been
enabled, if you need to restrict the visibility of vendor records for
particular companies or branches. For details, see Vendor Visibili-
ty: To Restrict Visibility to a Branch.

Enable the Multibranch Support, Multicompany Support, Cus-

tomer and Vendor Visibility Restriction, Multicurrency Account-
ing, and Multiple Base Currencies features, if you need to restrict
the visibility of vendor records for a particular company with the
base currency different from the tenant's base currency. For de-
tails, see Vendor Visibility: To Restrict Visibility to a New Company.

Vendor Classes (AP201000) Be sure that the vendor classes whose visibility you want to re-
strict have been defined.

Vendors (AP303000) Be sure that the vendor accounts have been defined for the ven-
dors whose visibility you want to restrict.

Branches (CS102000) Make sure that for each branch to which the visibility of any ven-
dors should be limited, the appropriate role associated with the
branch is specified in the Access Role box (Configuration Set-
tings section) on the Branch Details tab.

Companies (CS101500) Make sure that for each company to which the visibility of any
vendor should be limited, the appropriate role associated with
the company is specified in the Access Role box (Configuration
Settings section) on the Company Details tab.
 Implementing Advanced Financials | 164

Form Criteria to Check

Users (SM201010) or User Roles (SM201005) Make sure that the needed users have been assigned to the roles
specified for branches and companies. For details, see User
Roles: General Information.

Validation of Configuration
To make sure that all configuration has been performed correctly, we recommend that in your system, you perform
instructions similar to those described in Vendor Visibility: To Restrict Visibility to a Branch and Vendor Visibility: To
Restrict Visibility to a New Company.

Vendor Visibility: To Restrict Visibility to a Branch

In this implementation activity, you will learn how to restrict the visibility of a vendor record to a particular branch.

Story
Suppose that the management of SweetLife Fruits & Jams has decided to implement the restriction of vendor
visibility. One of vendors, Squeezo Inc., supplies juicers for the Service and Equipment Sales Center branch of
SweetLife Fruits & Jams company, and users who are employees of other branches and companies should not have
access to this vendor record. In other words, aer the implementation of this restriction, Pam Brawner, who is the
Service Manager of the SWEETEQUIP branch, should be able to access the Squeezo Inc. vendor and Eric Killian, the
Purchase Requisitions Manager in the Wholesale and Retail branches, should not be able to access this vendor.
Acting as a system administrator, you need to restrict the visibility of the SQUEEZO vendor to the SWEETEQUIP
(Service and Equipment Sales Center) branch only and make sure the appropriate access role has been specified for
this branch. You then need to verify that a user without this access role cannot access the vendor, and that a user
with this access role can access the vendor. Acting as an accountant, you need to create an AP document selecting
the SWEETEQUIP branch as the originating branch and specifying this vendor.

Configuration Overview
In the U100 dataset, for the purposes of this activity, the following tasks have been performed:
• On the Enable/Disable Features (CS100000) form, the Multicompany Support and Customer and Vendor
Visibility Restriction features have been enabled.
• On the Branches (CS102000) form, for the SWEETEQUIP branch, the Branch SweetEquip role associated with
the branch is specified in the Access Role box (Configuration Settings section) on the Branch Details tab.
• On the Users (SM201010) form, for the brawner login, the Branch SweetEquip role is selected on the Roles
tab. For the killian login, the Branch SweetEquip role is not selected on the Roles tab.
• On the Vendors (AP303000) form, the SQUEEZO vendor account has been configured.

Process Overview
In this activity, on the Branches (CS102000) form, you will make sure that the access role for the SWEETEQUIP
branch has been set up, and on the Users (SM201010) form, you will make sure that it has been assigned to one
of the users. On the Vendors (AP303000) form, you will set up a visibility restriction for the needed vendor. You
will then sign in to the tenant by using a username that is not assigned to the needed branch access role and
then a username that is assigned to the branch access role; in both cases, you will check for the ability to view
the SQUEEZO vendor. Finally, on the Bills and Adjustments (AP301000) form, you will create a bill for the SQUEEZO
vendor and make sure that you can select this vendor for a document if the originating branch is SWEETQEUIP.
 Implementing Advanced Financials | 165

System Preparation
Before you start restricting the visibility of a vendor record, sign in to a company with the U100 dataset preloaded
as a system administrator by using the following credentials:
• Username: gibbs
• Password: 123

Step 1: Reviewing Branch Access Roles of the Users

To review the access roles assigned to the brawner and killian users, do the following:
1. Open the Branches (CS102000) form.
2. In the Branch ID box, select SWEETEQUIP.
Notice that the access role for this branch specified in the Access Role box (Configuration Settings section)
on the Branch Detail tab is Branch SweetEquip.
3. Open the Users (SM201010) form.
4. In the Login box in the Summary area, select brawner.
5. In the table on the Roles tab, review the access roles assigned to this user. The Branch SweetEquip access
role has been assigned to this user (the Selected check box to the le of its row is selected).
6. In the Login box, select killian.
7. In the table on the Roles tab, review the access roles assigned to this user. Notice that the Branch
SweetEquip access role has the Selected check box cleared for its row; this access role has not been
assigned for this user.

Step 2: Restricting the Visibility of a Vendor

To restrict the visibility of the SQUEEZO vendor, do the following:
1. Open the Vendors (AP303000) form.
2. In the Vendor ID box, select SQUEEZO.
3. On the Financial tab (Financial Settings section), select SWEETEQUIP in the Restrict Visibility To box. This
is the Service and Equipment Sales Center branch of the SweetLife Fruits & Jams company.
4. On the form toolbar, click Save to save your changes.

Step 3: Reviewing the Visibility of the Vendor Record

To review the visibility of the vendor record, do the following:
1. Sign in to the tenant as a user who is not assigned the access role of the branch by using the following
credentials:
• Username: killian
• Password: 123
2. Open the Vendors (AP303000) form.
3. In the Vendor ID box of the Summary area, open the lookup table and attempt to find the SQUEEZO vendor.
Notice that the SQUEEZO vendor is not listed and you cannot find it by using the Search box; this vendor
is not visible for the current user, because this user is assigned to the role that has access to the SweetLife
 Implementing Advanced Financials | 166

Head Office and Wholesale Center branch of SweetLife Fruits & Jams only and is not assigned to the Branch
SweetEquip role, which is the access role of the branch specified for the vendor.
4. Sign in to the tenant as a user who is assigned the access role of the branch by using the following
credentials:
• Username: brawner
• Password: 123
5. Open the Vendors form.
6. In the Vendor ID box of the Summary area, open the lookup table and attempt to find the SQUEEZO vendor.
Notice that the SQUEEZO vendor is listed and thus is visible for the current user, because the user is assigned
to the Branch SweetEquip role, which is the access role of the branch specified for the vendor.
7. On the Purchase Settings tab, review the value in the Default Branch box. The default branch for this
vendor is SWEETEQUIP, and you cannot override this value because the vendor's visibility has been
restricted to this branch and this is the only branch that can be used with the vendor.
On the Bills and Adjustments (AP301000) form, when you are creating an AP document and select a vendor,
the system automatically populates the Branch box on the Financial tab with the default branch of the
selected location. (This branch is considered the originating branch of the document.) If the default branch
is not specified, the originating branch is the current branch to which you are signed in.

Step 4: Creating a Bill for the Squeezo Vendor

To create a bill for the SQUEEZO vendor whose visibility has been restricted, do the following:
1. Sign in to the tenant as Anna Johnson by using the johnson username and the 123 password.
This user is an accountant who has access to all branches of the SweetLife company.
2. On the Company and Branch Selection menu, select the SweetLife Head Office and Wholesale Center branch.
3. Open the Bills and Adjustments (AP301000) form.

To open the form for creating a new record, type the form ID in the Search box, and on the
Search form, point at the form title and click New right of the title.

4. On the form toolbar, click Add New Record.

5. In the Vendor box, click the magnifier button and review the list of vendors. Notice that the SQUEEZO
vendor is not listed, because its visibility has been restricted to the SWEETQEUIP branch and you are
signed in to the HEADOFFICE branch. HEADOFFICE is specified as the document's originating branch on the
Financial tab.
6. On the Financial tab, in the Branch box, select SWEETEQUIP.
You have changed the originating branch of the document to the branch in which the SQUEEZO vendor
should be accessible.
7. In the Vendor box, select SQUEEZO.
8. In the Summary area, specify the following settings:
• Type: Bill
• Date: 3/1/2023
• Description: Juicer
9. On the Details tab, click Add Row and enter the following settings for the added row:
• Inventory ID: INSTALL
• Quantity: 1
• Ext. Cost: 80 (inserted automatically)
 Implementing Advanced Financials | 167

• Project: X
10.On the form toolbar, click Save to save your changes.

For the purposes of this activity, you do not need to further process this bill.

Vendor Visibility: To Restrict Visibility to a New Company

The following activity will walk you through the process of restricting the visibility of a vendor to a particular
company with a base currency that is different from the base currency of the other companies in the tenant.

Story
Suppose that the management of SweetLife Fruits & Jams has decided to implement multiple base currencies in
Acumatica ERP. The implementation consultant has already set up a company with the CAD base currency and
added all the companies that use the USD base currency to one company group. The company using the CAD base
currency—SweetLife Canada—should work only with the Canadian vendors.
Acting as the implementation consultant, you need to limit the visibility of MAPLELEAF (a Canadian vendor) to the
SweetLife Canada company. You then need to verify that this vendor can be selected in the documents for this
company. To do this, you need to process a document and review the transaction posted to the general ledger. You
will then update the settings of the rest of the vendors by using an import scenario.

Configuration Overview
In the U100 dataset, the following configuration tasks have been performed to prepare the system for this activity:
• On the Enable/Disable Features (CS100000) form, the Multibranch Support, Multicompany Support, Customer
and Vendor Visibility Restriction, Multicurrency Accounting, and Multiple Base Currencies features have been
enabled.
• On the Users (SM201010) form, for the gibbs login, the Branch SLCanada role is selected on the Roles tab.
For the johnson login, the Branch SLCanada role is not selected on the Roles tab.
• On the Vendors (AP303000) form, the MAPLELEAF vendor has been configured.
• On the Import Scenarios (SM206025) form, the Import Vendors with Restricted Visibility import scenario has
been configured.

Process Overview
In this activity, you will restrict the visibility of a vendor to the SweetLife Canada company on the Vendors
(AP303000) form. You will then sign in as a user who does not have access to the SweetLife Canada company and
make sure that the vendor is not visible for this user. You will sign in as a user with access to SweetLife Canada
company, and on the Bills and Adjustments (AP301000) form, you will process a document for the MAPLELEAF
vendor, selecting SweetLife Canada as the originating branch.
Finally, on the Import by Scenario (SM206036) form, you will run a preconfigured import scenario to update the
Restrict Visibility To setting for regular vendors.

System Preparation
To prepare the system, do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. You should
sign in as Kimberly Gibbs by using the gibbs username and the 123 password.
 Implementing Advanced Financials | 168

2. In the company to which you are signed in, be sure you have configured the SweetLife Canada company, as
described in Multiple Base Currencies: Implementation Activity, which is a prerequisite activity.
3. On the Company Groups (CS102500) form, be sure that the USCOMP company group has been added. For
details, see Company Groups: Implementation Activity.
4. On the Branches (CS102000) form, be sure that for the SLCANADA branch, the Branch SLCanada role, which
is associated with the branch, is specified in the Access Role box (Configuration Settings section) on the
Branch Details tab.
5. On the Branches form, be sure that the SWEETEQUIP branch has been extended as a vendor. For details, see
Intercompany Sales: Implementation Activity.

Step 1: Restricting the Visibility of the Vendor

To restrict the visibility of the MAPLELEAF vendor to SweetLife Canada, do the following:
1. Open the Vendors (AP303000) form.
2. In the Vendor ID box, select MAPLELEAF.
Notice that the vendor class of this vendor is INTLCA (Canadian Vendors).
3. On the Financial tab, in the Restrict Visibility To box, select SLCANADA.
4. In the Currency ID box, select CAD.
Notice that the boxes in the Summary area now have the currency symbol of the Canadian dollar (C$)
displayed next to them. This means that the system will store the balance of this vendor in CAD.
5. On the form toolbar, click Save.

Step 2: Reviewing the Visibility of the Vendor

To review how the visibility of the vendor has been restricted, do the following:
1. Sign in to the tenant as a user who is not assigned the access role of the Branch SLCanada branch by using
the following credentials:
• Username: johnson
• Password: 123
2. Open the Vendors (AP303000) form.
3. In the Vendor ID box of the Summary area, open the lookup table, and attempt to find the MAPLELEAF
vendor.
Notice that the MAPLELEAF vendor is not listed and that you cannot find it by using the Search box. This
vendor is not visible for the current user, because this user is assigned to the role that has access to the
SweetLife Fruits & Jams company only and is not assigned to the Branch SLCanada role, which is the access
role of the company specified for the vendor.

Step 3: Processing a Bill for the Vendor with Restricted Visibility

To process a bill for the MAPLELEAF vendor, which has restricted visibility to the branch, do the following:
1. Sign in to the tenant as a user who is assigned the access role of the Branch SLCanada branch by using the
following credentials:
• Username: gibbs
• Password: 123
2. On the Company and Branch Selection menu, on the top pane of the Acumatica ERP screen, select the
SweetLife Canada company.
 Implementing Advanced Financials | 169

3. Open the Bills and Adjustments (AP301000) form.

To open the form for creating a new record, type the form ID in the Search box, and on the
Search form, point at the form title and click New right of the title.

4. Click Add New Record on the form toolbar, and specify the following settings in the Summary area:
• Type: Bill
• Date: 1/30/2023
• Vendor: MAPLELEAF
You can select this vendor (whose visibility has been restricted to the SweetLife Canada company)
because you are signed in to this company and the system has filled in the original branch of the
document with SweetLife Canada.
5. On the Financial tab, notice that in the Branch box SLCANADA is selected. This is the originating branch of
the document.
6. On the same tab, specify the following settings:
• Payment Method: WIRE
• Cash Account: 10215SL
7. On the Details tab, click Add Row on the table toolbar, and specify the following settings for the added row:
• Branch: SLCANADA (inserted automatically)
• Transaction Descr.: Advertising services
• Ext. Cost: 299
8. On the form toolbar, click Remove Hold, and then click Release to release the bill.
9. On the Financial tab, click the link in the Batch Nbr. box to review the generated GL transaction on the
Journal Transactions (GL301000) form.
The transaction has been posted for the SLCANADA branch, and the transaction currency specified in the
Currency box is CAD because you selected this currency on the Vendors (AP303000) form.

Step 4: Updating Vendor Settings by Using an Import Scenario

Because the Multiple Base Currencies feature has been enabled aer some vendors were created in the system and
the Restrict Visibility To box became required, this box has to be filled in for all the vendors. You can use an import
scenario to fill in the box for multiple customers quickly and easily. To update the Restrict Visibility To setting for
regular vendors, do the following:
1. Open the Import by Scenario (SM206036) form.
2. In the Name box, select Import Vendors with Restricted Visibility.
3. On the form toolbar, click Prepare.
The system has uploaded the records from the source Excel file on the Prepared Data tab.

This file is also attached to the Excel data provider on the Data Providers (SM206015) form
and the Import Vendors with Restricted Visibility import scenario on the Import Scenarios
(SM206025) form.

4. On the form toolbar, click Import to update the vendor records.

Notice that for all records on the Prepared Data tab, the system has selected the Processed check box.
5. Open the Vendors (AP303000) form.
6. In the Vendor ID box, select ACMEDO.
 Implementing Advanced Financials | 170

7. On the Financial tab, notice that the USCOMP - U.S. Companies option is now selected in the Restrict
Visibility To box in the Financial Settings section. This setting means that this vendor can be used in
documents originating from companies in the USCOMP company group.
8. In the Vendor ID box, select SWEETEQUIP, which was not updated by the import.
9. On the Financial tab, notice that the Restrict Visibility To box, which is optional, is empty. This is because
this vendor has been extended from a branch, as described in Intercompany Sales: Implementation Activity,
and can be used by all companies with different base currencies in the tenant.
 Implementing Budgets | 171

Implementing Budgets
This chapter describes how to configure budgets in Acumatica ERP.

Access to Budget Nodes

In this chapter, you will learn how to assign access to budget nodes to multiple user roles in Acumatica ERP.

Access to Budget Nodes: General Information

In Acumatica ERP, organizations implement general access restrictions by assigning roles to users of the system
and controlling access to the resources by assigning the roles the needed access rights. The roles assigned to users
then allow them to access the needed resources to perform the specific tasks required for their jobs. If needed,
restriction groups can be used to meet additional security requirements.
This approach can be especially useful with budget articles. If a role allows a user to view or edit GL budget articles,
the user can view all the articles, including those that might be sensitive. By using restriction groups, you can limit
the visibility of sensitive budget articles so that only particular users can see and work with these articles.

Learning Objectives
In this chapter, you will learn how to configure access rights for multiple users by creating restriction groups.

Applicable Scenarios
You assign access to budget articles for multiple user roles if you want users belonging to particular roles to have
access to particular budget nodes, and all other users not to have this access.

Management of the Visibility of GL Budget Articles by User

In Acumatica ERP, you can configure restriction groups with direct and inverse restrictions. Groups with direct
restriction (types A and B) make the entities included in the group visible to users who are included in the group;
other users cannot view these entities. Groups in inverse restrictions (types A Inverse and B Inverse) hide the entities
included in the group from users who are also included in the group; users who are not assigned to this group can
view and use these entities. For details on the types of restriction groups, see Types of Restriction Groups.
You can configure a direct restriction group that will limit the visibility of GL budget articles (leaf articles or nodes
at any level) for users. As a result, the users included in the group will be able to see the budget articles (and these
articles' subarticles, if there are any).
For example, suppose that the Wages budget article should be available to only the chief financial officer of your
organization. To configure the visibility of this budget article, you need to do the following on the GL Budget Access
(GL105030) form:
1. You create a restriction group (for example, Group for Wages Budget Article) with direct restriction.
2. You add to the group the user account of the chief financial officer.
3. You add to the group the Wages budget article.

For more details about restriction groups, see Restriction Groups in Acumatica ERP.
 Implementing Budgets | 172

The restriction groups that you configure are applied only to new budgets, that is those budgets that
were created aer the access was configured.
If you need to apply a restriction group to an existing budget, you should do the following:
1. On the Budgets (GL302010) form, select the needed budget.
2. On the form toolbar, click Manage Budget.
3. In the Manage Budget dialog box, select Convert Budget Using Current Budget Configuration in
the Select Action box, and click OK.
4. Confirm the action and click Save to save the budget.

Workflow of Configuring Access to Budget Nodes

The following diagram illustrates how you can assign access to nodes of a budget by configuring direct restriction
groups of type A, which means that the budget nodes included in these groups will be visible to the users included
in these groups.
In the diagram, the budget node was initially visible to all users assigned to the Sales Manager, Purchasing
Manager, and Financial Supervisor roles. By setting up a restriction group with direct restriction, you make the Sales
node of the budget tree visible to the users with the Sales Manager role, and the subnodes of the Purchases nodes
visible to users with the Purchasing Manager role. The Financial Supervisor has been included in both groups, so
users with this role can access all nodes of the budget tree.

Figure: Access to budget nodes for users

Access to Budget Nodes: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for assigning
access to budget nodes, and to understand (and change, if needed) the settings that affect the processing
workflow.
 Implementing Budgets | 173

Implementation Checklist
We recommend that before you initially assign access to budget nodes, you make sure the needed features have
been enabled, settings have been specified, and entities have been created, as summarized in the following
checklist.

Form Criteria to Check

Enable/Disable Features (CS100000) Make sure that the Standard Financials and Row-Level
Security features have been enabled.

Multiple forms Make sure that the minimum configuration of the com-
pany has been performed, as described in Company
Without Branches: General Information, Company with
Branches that Do Not Require Balancing: General Infor-
mation, and Company with Branches that Require Bal-
ancing: General Information.

GL functionality Make sure that the general ledger functionality has

been implemented, as described in General Ledger:
General Information.

Ledgers (GL201500) Make sure that the ledger to which the budget should
be posted has been created, as described in Budget
Ledger: General Information.

Chart of Accounts (GL202500) Check whether the necessary accounts have been cre-
ated.

Master Financial Calendar (GL201000) Be sure that calendars for the financial years for which
budgets will be created have been generated.

Budget Configuration (GL205000) Make sure that a budget tree has been created and re-
leased as described in Budget Tree: Implementation Ac-
tivity.

Additional Configuration
The following table provides details of additional configuration needed for the preparation of a simple budget.

Form Settings to Check Notes

Multiple forms If your company uses subaccounts,  

the subaccounts have to be config-
ured, as described in Subaccounts:
Implementation Activity.

Validation of Configuration
To make sure that all configuration has been performed correctly, we recommend that in your system, you assign
access to budget nodes by performing instructions similar to those described in Access to Budget Nodes: Process
Activity.
 Implementing Budgets | 174

Access to Budget Nodes: Process Activity

The following activity will walk you through the process of configuring access to budget nodes based on user roles.

Story
Suppose that the management team of SweetLife Fruits & Jams has asked the system administrator to assign
access rights to the budget nodes for employees of particular roles: Sales managers should be able to view only the
Sales node, purchasing managers should be able to view only the Production node, and the financial supervisor
should view all nodes of the budget tree.
Acting as a system administrator, you need to give the users of the Sales Manager, Purchasing Manager, and
Financial Supervisor roles the ability to access the budget tree nodes. (For the Sales Manager and Purchasing
Manager roles, you will grant the access to only particular users with the role—those that have completed their
orientation and are considered qualified to view this information.) You will then review the access rights for the
nodes.

Configuration Overview
On the Enable/Disable Features (CS100000) form, the Subaccounts feature has been enabled. On the Segmented
Keys (CS202000) form, the SUBACCOUNT segmented key has been defined according to the company’s business
needs, as described in Subaccounts: Implementation Activity.
On the Budget Configuration (GL205000) form, a budget tree has been created, as described in Budget Tree:
Implementation Activity.

In the U100 dataset, the Sales Manager, Purchasing Manager, and Financial Supervisor roles have been defined on
the User Roles (SM201005) form.

Process Overview
In this activity, on the Access Rights by Role (SM201025) form, you will first assign access to the Budgets (GL302010)
form for the Sales Manager and Purchasing Manager user roles. You will then enable the Row-Level Security feature
on the Enable/Disable Features (CS100000) form. On the GL Budget Access (GL105030) form, you will create the
SalesBudget and ProductionBudget restriction groups, selecting the users and budget tree nodes for each group, to
assign access to the particular budget nodes.

System Preparation
To prepare the system, in a tenant with the U100 dataset preloaded, do the following:
1. Launch the Acumatica ERP website, and sign in as a system administrator by using the following credentials:
• Username: gibbs
• Password: 123
2. As a prerequisite to the current activity, make sure you have completed Budget Tree: Implementation Activity.

Step 1: Assigning Access to All Budget Nodes for User Roles

To give users that are assigned to the Sales Manager and Purchasing Manager roles the access rights to review and
modify budgets on the Budgets (GL302010) form, do the following:
1. Open the Access Rights by Role (SM201025) form.
 Implementing Budgets | 175

2. In the Role Name box, select Sales Manager.

3. In the le pane, click Finance, and in the table in the right pane, for the Budgets row, double-click the
current value in the Access Rights column and select Edit.
The Finance node controls the role's access to various finance-related forms, including Budgets (GL302010),
whose access rights you have set here.
The Edit level of access rights allows users with the role to view the form, select records, and edit details
about any record. However, users with the role cannot create new records or entities of the type, and delete
records.
4. On the form toolbar, click Save to save your changes.
5. In the Role Name box, select Purchasing Manager.
6. In the le pane, click Finance, and in the table in the right pane, for the Budgets row, double-click the
current value in the Access Rights column and select Edit.
7. On the form toolbar, click Save to save your changes.

Step 2: Enabling the Needed Feature

In this step, you will enable the Row-Level Security feature, which will make it possible to define restriction groups
in the system. To enable the needed feature, do the following:
1. Open the Enable/Disable Features (CS100000) form.
2. On the form toolbar, click Modify.
3. Select the Row-Level Security check box (in the Monitoring & Automation group).
4. On the form toolbar, click Enable.

Step 3: Assigning Access Rights to the Sales Node

In this step, you will create a restriction group and assign access rights to users with the Sales Manager role, as well
as to the financial supervisor, who has the johnson username. Do the following:
1. Open the GL Budget Access (GL105030) form.
2. On the form toolbar, click Add New Record, and specify the following settings in the Summary area:
• Group Name: SalesBudget
• Description: Sales Budget Access
• Group Type: A
• Active: Selected
The system has uploaded all users of the system to the table on the Users tab.
3. In the table, select the Included check box for the becher, chubb, norman, and pick usernames.
The users with these usernames are sales managers in SweetLife Fruits & Jams; thus, they should have
access to the Sales node of the company's budget on the Budgets (GL302010) form.
4. In the table, select the Included check box for the johnson and gibbs usernames.
Once you configure a restriction group of type A, the users not included in this group will not have access
to the Sales node of the budget. The user with the johnson username is a financial supervisor who needs
access to this node. The user with the gibbs username is a system administrator who needs access to this
node for the configuration purpose.
5. On the Budget Tree tab, select the Included check box for the row with the Sales node of the budget to
make it accessible for users added to this group.
6. Make sure that the Included check boxes for sales articles have been selected automatically by the system.
 Implementing Budgets | 176

7. On the form toolbar, click Save to save the new restriction group.

Step 4: Assigning Access Rights to the Production Node

To create a restriction group and assign access rights to users with the Purchasing Manager role (as well as to the
financial supervisor, who has the johnson username), do the following:
1. While you are still on the GL Budget Access (GL105030) form, click Add New Record on the form toolbar,
and specify the following settings in the Summary area:
• Group Name: ProductionBudget
• Description: Production Budget Access
• Group Type: A
• Active: Selected
The system has uploaded all users in the system to the table on the Users tab.
2. In the table, select the Included check boxes for the brawner, jones, and wiley usernames.
The users with these usernames are the purchasing managers in SweetLife Fruits & Jams; thus, they should
have access to the Production node of the company's budget on the Budgets (GL302010) form.
3. Select the Included check boxes for the johnson and gibbs usernames.
Once you configure a restriction group of type A, the users not included in this group will not have access to
the Production node of the budget. The user with the johnson username is a financial supervisor who needs
access to this node. The user with the gibbs username is a system administrator who needs access to this
node for the configuration purpose.
4. On the Budget Tree tab, select the Included check box for the row with the Production node.
5. On the form toolbar, click Save to save the new restriction group.

Budget Ledger

In Acumatica ERP, you can create ledgers of the Budget type to keep budgets so that user can then prepare
budget-related reports and compare budgets. In this chapter, you will find general information on budget ledgers,
configuration prerequisites, and an activity you can use to practice the creation of budget ledgers.

Budget Ledger: General Information

In Acumatica ERP, you can create ledgers of the Budget type to store information on budgets.

Learning Objectives
In this chapter, you will learn how to create a ledger of the Budget type.

Applicable Scenarios
You create a budget ledger if you need to prepare a budget in the system. You can also use the budget ledger as a
base ledger for calculating allocation proportions. For details, see Allocation Rules: General Information.
 Implementing Budgets | 177

Creation and Population of a Budget Ledger

You can create as many budget ledgers as you need on the Ledgers (GL201500) form. You can use a single ledger
to post the annual budgets of different companies or branches. To prepare two different budgets for the same
company, branch, and year (for example, an optimistic budget and a pessimistic budget), you have to create a
budget ledger for each budget.
To create a budget in the budget ledger, you prepare the budget on the Budgets (GL302010) form and release it on
the Release Budgets (GL505510) form. When you release the budget, the budget amounts are posted to the budget
ledger under the account (and subaccount, if applicable) of the budget article. Aer the release of the budget, the
budget amounts can be shown in reports; they can also be compared with actual figures or other budgets on the
Budgets form.

You cannot enter transactions in the budget ledger.

Budget Ledger: Configuration Prerequisites

Before starting to create a budget ledger, you must be sure that the system has been configured properly and that
all required entities have been created, as described in the following sections.

Enabling the Needed Features

On the Enable/Disable Features (CS100000) form, the minimum set of features has been enabled.

Configuring the System

Before you create a budget ledger in Acumatica ERP, you need to make sure that the company has been configured
properly. For details, see Company Without Branches: To Configure a Company Without Branches, Company with
Branches that Do Not Require Balancing: Implementation Activity, or Company with Branches that Require Balancing:
Implementation Activity.

Budget Ledger: Implementation Activity

In this activity, you will learn how to create a budget ledger for a company in Acumatica ERP.

Story
Suppose that as an accountant, you need to create a budget ledger that will hold the optimistic budgets for the
SweetLife Fruits & Jams and Muffins & Cakes companies.

System Preparation
Before you start creating a budget ledger, you need to sign in to a tenant with the U100 dataset preloaded. Sign in
as an accountant with the following credentials:
• Username: pasic
• Password: 123
 Implementing Budgets | 178

Step: Creating a Budget Ledger

To create a budget ledger to be used by the companies, do the following:
1. Open the Ledgers (GL201500) form.
2. On the form toolbar, click Add New Record.
3. In the Ledger ID box in the Summary area, type BUDGETOPT.
4. In the Description box, type Ledger for optimistic budgets.
5. In the Type box, select Budget.
6. On the table toolbar of the Companies tab, click Add Row, and select SWEETLIFE in the Company column of
the added row.
7. Click Add Row again, and select MUFFINS in the Company column of the added row.
8. On the form toolbar, click Save.
On the Branches tab, notice that all the branches of the SweetLife Fruits & Jams and Muffins & Cakes
companies have been added.

You have created a budget ledger that can now be used to store optimistic budgets for both companies.

Budget Tree

In Acumatica ERP, if budget articles should be grouped to give users the ability to review the overall budget
amount for each particular group, you can configure a budget structure. In the configuration, you have to create
nodes, which represent a group of budget articles, and leaves, which represent the budget articles of a node. This
configuration will then be used for creating a budget in the system.
In this chapter, you will find general information on the budget tree, as well as the configuration prerequisites, an
example of a budget structure, and an activity, which guides you through the steps of creating the budget tree.

Budget Tree: General Information

In Acumatica ERP, you can define a budget structure that will be used by all companies and branches. To do so, you
configure a budget tree, in which budget articles are divided into groups.

We recommend that you define a budget tree because it makes easier to prepare and analyze
budgets. However, you can work with simple budgets, which are lists of budget articles, without the
configuration of the budget tree first being performed. For details, see Preparing a Simple Budget.

Learning Objectives
In this chapter, you will learn about the following:
• The elements of a budget tree structure
• The ways the budget tree can be configured
 Implementing Budgets | 179

Applicable Scenarios
You create a budget tree if hierarchical (multilevel) budgets are used by your organization to facilitate the
preparation of the budget.

Configuration of a Budget Tree

Before you start configuring budgets, you should consider the needs of all companies and branches defined in the
tenant so that you can include all the budget levels used by your companies and branches, because the same tree
will be used for all companies, branches, and budget versions.
To define the structure of the budgets that are used in the system, you build a budget tree on the Budget
Configuration (GL205000) form. To do so, you add budget articles that are represented as nodes and leaves in the
system.
Node articles group similar leaf articles. For example, you can create one node for the account–subaccount pairs for
salaries and another node for the account–subaccount pairs that are used to record sales.
Each leaf article is defined by an account–subaccount pair. The account and subaccount of the leaf are the ones to
which the budget amount is recorded in the system. The system calculates the amount for each node automatically
as the sum of the amounts of all its leaf articles.

An account–subaccount pair can be used only once within a tree.

The budget tree will be preloaded when you start creating a budget on the Budgets (GL302010) form. You can
modify the preloaded structure for each particular budget.

Node Budget Articles

You define nodes on the Subarticles pane of the Budget Configuration (GL205000) form. For each node, you enter a
description; you can also specify account or subaccount masks (or both types of masks). The check box in the Node
column has to be selected for each node you create in the system.
The account and subaccount masks specified for the node in the Account Mask and Subaccount Mask columns
define the articles that can be added to this node. When you create a budget on the Budgets (GL302010) form, you
can preload articles to this node based on the mask, so that you do not have to define a leaf for every single article
in the budget tree.
You can further populate nodes with other nodes, or define leaf articles for each node.

Leaf Budget Articles

You add each leaf (account–subaccount pair) to the budget tree on the Subarticles pane of the Budget Configuration
(GL205000) form. You can do this in one of the following ways:
• To add a range of similar accounts and subaccounts, you click Preload Accounts on the table toolbar of
the Subarticles pane. You then specify a range of accounts and a mask for subaccounts in the Preload
Accounts dialog box. Aer you click OK in the dialog box, the system generates all possible account–
subaccount pairs.
• To enter each account–subaccount pair manually, on the Subarticles pane, you click Add Row on the table
toolbar and specify an account–subaccount pair.
For leaves, you can specify account and subaccount masks in the Account Mask and Subaccount Mask columns.
The account mask and the subaccount mask define the account–subaccount pair or pairs included in the budget
article. For example, you might want to aggregate small amounts of different accounts under just one account in
the budget. To do so, you specify the account mask and subaccount mask of the group in the leaf.
 Implementing Budgets | 180

Budget Tree: Example

Suppose that one company—North Serpent Company, with stores in the mountainous areas of California and
Nevada—sells skis and snowboards and offers rental services. The company's stores are too small to function as
branches, so the Branch Accounting feature is disabled on the Enable/Disable Features (CS100000) form.

Defining the Account Structure of the Company

The organizational structure of the company is reflected in the subaccounts. In Acumatica ERP, if the Subaccounts
feature is enabled on the Enable/Disable Features (CS100000) form, subaccounts are used with accounts to virtually
split accounts into more specific accounts for detailed tracking and reporting. In our example, the subaccounts
have the following structure (see Subaccounts: Example of Planning of Subaccount Identifiers):
• First segment: Company store (point of sale):
• CA (California store)
• NV (Nevada store)
• 00 (non-specific to a store)
• Second segment: Profit center
• RENT (rentals)
• SALE (sales)
• 0000 (non-specific to a profit center)
• Third segment: Product type
• SK (skis)
• SB (snowboards)
• 00 (non-specific)

Configuring a Budget Structure

Suppose the North Serpent Company prepares the budgets with the following major budget articles:
• Revenue from Sales
• Revenue from Rentals
• COGS
• Other Expenses
These major budget articles will be represented as nodes on the Budget Configuration (GL302010) form, which
you use to build a budget tree for the company. Also, each major node contains subnodes for which account and
subaccount masks are specified. Leaves are defined by an account-subaccount pair for each subnode. You can see a
schematic example of the configured budget tree in the table below.

Table: Budget Tree

Node Subarticles Subarticles (Leaves) Ac- Subaccount Ac- Subaccount

(Nodes) count Mask count
Mask

Sales            

  Sales–Cali-   4100 CA-SALE-??    

fornia
 Implementing Budgets | 181

Node Subarticles Subarticles (Leaves) Ac- Subaccount Ac- Subaccount

(Nodes) count Mask count
Mask

    Sales–California–Skis     4100 CA-SALE-SK

    Sales–Califor-     4100 CA-SALE-SB

nia–Snowboards

  Sales–Neva-   4100 NV-SALE-??    

da

    Sales–Nevada–Skis     4100 NV-SALE-SK

    Sales–Nevada–Snow-     4100 NV-SALE-SB

boards

Rentals            

  Rentals–Cali-   4500 CA-RENT-??    

fornia

    Rentals–Califor-     4500 CA-RENT-SK

nia–Skis

    Rentals–Califor-     4500 CA-RENT-SB

nia–Snowboards

  Rentals–   4500 NV-RENT-??    

Nevada

    Rentals–Nevada–Skis     4500 NV-RENT-SK

    Rentals–Neva-     4500 NV-RENT-SB

da–Snowboards

COGS            

  COGS–Skis   5000 ??-SALE-SK    

    COGS–Nevada–Skis     5000 NV-SALE-SK

    COGS–California–Skis     5000 CA-SALE-SK

  COGS–Snow-   5000 ??-SALE-SB    

boards

    COGS–Nevada–Snow-     5000 NV-SALE-SB

boards

    COGS–Califor-     5000 CA-SALE-SB

nia–Snowboards

Other Ex-            
penses
 Implementing Budgets | 182

Node Subarticles Subarticles (Leaves) Ac- Subaccount Ac- Subaccount

(Nodes) count Mask count
Mask

  Repairs and   55?? ??-????-??    

Maintenance

    Repairs and Mainte- 5570 NV-????-?? (Ag- 5570 NV-0000-00

nance–Nevada gregation)

    Repairs and Mainte- 5580 CA-????-?? (Ag- 5580 CA-0000-00

nance–California gregation)

Defining Account-Subaccount Pairs and Masks

For the major node, account and subaccount masks are not specified because these nodes are divided into
multiple nodes. For each subnode, the account and subaccount masks are specified. These masks specify the
group of budget articles that can be added under the node. The articles with the account and subaccount that
match the masks are automatically placed under the node when you preload articles for a budget on the Budgets
(GL302010) form.
The articles with values in all four columns are leaf articles with initial aggregation over the data defined by these
masks. The expenses recorded to the Repairs and Maintenance account for each store last year, although summed
to significant amounts, cannot help in predicting the expenses for the budget year, but the their sum can. The
company can plan the amounts based on the previous year's data with a specific coefficient whose value is based
on the percentage of old equipment and other related factors. The company plans these amounts as lump sums
without details; to do this, the company uses budget articles with aggregation. The articles have the account-
subaccount pairs specified and the subaccount masks for aggregating the amounts.

Budget Tree: Configuration Prerequisites

Before you start to configure a budget tree, you must be sure that the system has been configured properly and
that all required entities have been created, as described in the following sections.

Enabling the Needed Features

On the Enable/Disable Features (CS100000) form, the minimum set of features has to be enabled.
Also, if subaccounts are used in your system, make sure the Subaccounts feature has been enabled.

Configuring the System

You need to make sure that the following implementation tasks have been performed in Acumatica ERP before you
begin configuring a budget tree:
• On the Companies (CS101500) form, the companies of the organization have been configured, and the
appropriate actual ledger has been assigned to each company. For details, see Company Without Branches:
To Configure a Company Without Branches.
• On the Chart of Accounts (GL202500) form, the accounts to be used with the accounts receivable
functionality have been defined. For more information, see General Ledger: To Create a Chart of Accounts.
• On the General Ledger Preferences (GL102000) form, the preference settings for the general ledger
functionality have been specified. For details, see General Ledger: To Specify General Ledger Preferences.
If subaccounts are used in your system, make sure that the following implementation has been performed:
 Implementing Budgets | 183

• On the Segmented Keys (CS202000) and the Segment Values (CS203000) forms, the structure of the
SUBACCOUNT segmented key has been defined and the list of possible segment values have been specified.
For more information, see Subaccounts: Implementation Activity.
• On the Subaccounts (GL203000) form, the subaccounts you are going to use in the budget have been added.

Budget Tree: Implementation Activity

In this activity, you will learn how to configure a budget tree in the system.

Story
Suppose that the managers of the SweetLife Fruits & Jams decided to use hierarchical budgets in the system, so
that the budget would include the Sales node and the Production node; the latter node should have the Purchases,
Labor Cost, and Overhead subnodes.
Acting as a system administrator, you need to create a budget tree with the Sales and Production nodes, which will
contain the related budget articles.

Configuration Overview
On the Enable/Disable Features (CS100000) form, the Subaccounts feature has been enabled. On the Segmented
Keys (CS202000) form, the SUBACCOUNT segmented key has been defined according to the company’s business
needs, as described in Subaccounts: Implementation Activity.
In the U100 dataset, on the Ledgers (CS202000) form, a ledger with the BUDGET identifier and the Budget type has
been defined for the SweetLife Fruits & Jams company.

Process Overview
In this activity, on the Subaccounts (GL203000) form, you will upload the list of subaccounts from an Excel file. On
the Budget Configuration (GL205000) form, you will create budget nodes and add leaves for each node.

System Preparation
Before you begin configuring the budget tree, in a tenant with the U100 dataset preloaded, do the following:
1. Sign in to the tenant as a system administrator with the following credentials:
• Username: gibbs
• Password: 123
2. As a prerequisite to the current activity, make sure you have completed Subaccounts: Implementation Activity.
3. Make sure that the 2024 financial year has been created on the Master Financial Calendar (GL201000) form.

Step 1: Uploading a List of Subaccounts

To upload the list of subaccounts from a file, do the following:
1. Open the Subaccounts (GL203000) form.
2. On the form toolbar, click Load Records from File.
3. In the File Upload dialog box, which opens, click Choose File and select the Subaccounts.xlsx file.
4. Click Upload.
5. In the Common Settings dialog box, which opens, leave the default values and click OK.
 Implementing Budgets | 184

6. In the Columns dialog box, which opens, leave the default settings and click OK.
7. On the form toolbar, click Save to save your changes.

Step 2: Defining Nodes

To define nodes in the budget structure, do the following:
1. Open the Budget Configuration (GL205000) form.
2. In the Budget Tree pane, notice that the tenant to which you are currently logged in is highlighted in bold
type.
3. In the Subarticles pane, click Add Row on the table toolbar, and do the following in the added row:
a. Select the check box in the Node column.
b. In the Description column, type Sales.
c. Leave the other columns empty.
You have not specified the account and subaccount masks for this node, because you will preload
accounts and add an account manually to this node later.
4. Click Add Row, and specify the following settings in the row to create a node:
• Node: Selected
• Description: Production
• Other columns: Empty
You have not specified the account and subaccount masks for this node, because you will add subnodes
for this node later.
5. Click Save on the form toolbar to save your changes.

You have created nodes for your budget structure, which you can now see in the Budget Tree pane.

Step 3: Adding Leaves to the Sales Node

To add leaves to the Sales node, do the following:
1. While you are still viewing the budget tree on the Budget Configuration (GL205000) form, in the Budget Tree
pane, click the Sales node.
2. On the table toolbar of the Subarticles pane, click Preload Accounts.
The Preload Accounts dialog box opens.
3. In this dialog box, in the Account From box, select 40000.
4. In the Account To box, select 40000.
5. In the Subaccount Mask box, enter ???-000.
6. Click OK to preload the budget leaves. The system automatically populates the budget tree with all the
possible combinations that match the specified mask.
7. On the toolbar of the Subarticles pane, click Add Row and specify the following settings for the added row:
• Node: Cleared
• Account: 40010
• Subaccount: 000-000
• Account Mask: 40010
• Subaccount Mask: ???-000
8. On the form toolbar, click Save to save your changes. The following screenshot illustrates the Sales node
with the added accounts.
 Implementing Budgets | 185

Figure: The Sales node with the added accounts

Step 4: Adding Subnodes to the Production Node

To add subnodes to the Production node, do the following:
1. While you are still viewing the budget tree on the Budget Configuration (GL205000) form, in the Budget Tree
pane, click the Production node.
2. On the table toolbar of the Subarticles pane, click Add Row, and specify the following settings for the
added row:
• Node: Selected
• Description: Purchases
3. Click Add Row, and specify the following settings for the added row:
• Node: Selected
• Description: Labor Cost
4. Click Add Row, and specify the following settings for the added row:
• Node: Selected
• Description: Overhead
5. On the form toolbar, click Save to save your changes.

Step 5: Adding Leaves to the Subnodes of the Production Node

To add leaves to the subnodes of the Production node, do the following:
1. While you are still viewing the budget tree on the Budget Configuration (GL205000) form, in the Budget Tree
pane, click the Purchases subnode of the Production node.
2. On the table toolbar of the Subarticles pane, click Add Row and add the following leaves:

Node Account Subaccount Description

Cleared 60000 000-000 Purchase Expense

Cleared 61000 000-000 Advertising Expense

Cleared 51300 000-000 COGS - Freight

3. On the form toolbar, click Save to save the budget configuration, as shown in the following screenshot.
 Implementing Budgets | 186

Figure: The Purchases subnode of the Production node

4. In the Budget Tree pane, click the Labor Cost subnode of the Production node.
5. On the table toolbar of the Subarticles pane, click Preload Accounts.
6. In the Preload Accounts dialog box that opens, specify the following settings:
• Account From: 69500 - Salaries and Wages
• Account To: 69500 - Salaries and Wages
• Subaccount Mask: 000-???
7. Click OK in the dialog box.
The system loads all the accounts that match the specified account and subaccount masks.
8. In the Subarticles pane, remove the row with the 69500 account and 000-000 subaccount, and a row with
the 69500 account and the 000-ENG subaccount.
9. On the table toolbar of the Subarticles pane, click Add Row and specify the following settings for the row:
• Node: Cleared
• Account: 69550 (Bonus Expenses)
• Subaccount: 000-000
10.On the form toolbar, click Save to save the budget configuration, as shown in the following screenshot.

Figure: The Labor Cost subnode of the Production node

11.In the Budget Tree pane, click the Overhead subnode of the Production node.
12.On the table toolbar of the Subarticles pane, click Add Row and add the following leaves:

Node Account Subaccount Description Account Mask Subaccount

Mask

Cleared 62400 000-000 Office Expense 62400 000-???

 Implementing Budgets | 187

Node Account Subaccount Description Account Mask Subaccount

Mask

Cleared 62900 000-000 Rent or Lease Ex- 62900 000-???

pense

Cleared 62950 000-000 Repairs 62950 000-???

Cleared 63300 000-000 Utilities 63300 000-???

13.On the form toolbar, click Save to save the budget configuration, also shown in the following screenshot.

Figure: The Overhead subnode of the Production node

 Implementing Currency Management | 188

Implementing Currency Management

This chapter explains how to implement multicurrency accounting in Acumatica ERP.

Multicurrency Functionality

The topics of this chapter describe how to configure the multicurrency functionality in Acumatica ERP.

Multicurrency Functionality: General Information

To start working with multiple currencies, you have to configure this functionality in Acumatica ERP. This chapter
describes how to prepare for the configuration and how to perform configuration that meets your business needs.

Learning Objectives
In this chapter, you will learn how to do the following:
• Enable the required system feature
• Review the base currency and configure foreign currencies
• Manually configure a foreign currency

Applicable Scenarios
You configure the multicurrency functionality if your company works with foreign vendors and customers and you
want to perform the following processes in Acumatica ERP:
• Maintaining the actual exchange rates for foreign currencies used in the system
• Maintaining bank accounts denominated in a foreign currency
• Creating and processing documents in a foreign currency
• Estimating unrealized gains and losses by revaluing open AP and AR documents
• Revaluing bank account balances
• Translating financial statements into a foreign currency to meet reporting needs

Scope of the Multicurrency Functionality in Acumatica ERP

The following subledgers and functional areas of Acumatica ERP support the processing of documents and
transactions in foreign currencies:
• General ledger
• Cash management
• Accounts payable
• Accounts receivable and contract management
• Taxes (you can report taxes in a currency other than the base currency)
• Sales orders
• Purchase orders
• Purchase requisitions
 Implementing Currency Management | 189

• Time and expenses

Transactions can be processed in the base currency only in functionality related to fixed assets, deferred revenue,
inventory, and project accounting in Acumatica ERP.

Workflow of the Implementation of the Multicurrency Functionality

To implement the multicurrency functionality in Acumatica ERP, you perform the following general steps:
1. On the Chart of Accounts (GL202500) form, you create the accounts that will be used in multicurrency
operations. For more information, see General Ledger: Chart of Accounts.
2. If subaccounts are used in your system and the Allow Adding New Values On the Fly check box is cleared
for the SUBACCOUNT segmented key on the Segmented Keys (CS202000) form, you use the Subaccounts
(GL203000) form to create the subaccounts that have been planned for the foreign currencies. For details on
subaccounts, see Subaccounts: General Information.
3. On the Currencies (CM202000) form, you specify the accounts the system will use for recording rounding
gains and losses, and the accounts the system will use for recording realized gains and losses. For details,
see Multicurrency Functionality: Currency Rounding Rules.
4. On the Currencies form, you configure the foreign currencies to be used in the system. For an example with
instructions, see Multicurrency Functionality: Implementation Activity.
5. Optional: On the Currency Rate Types (CM201000) form, you create each of the planned rate types. For
details, see Configuration of Rate Types and Rates: General Information.
6. On the Currency Rates (CM201000) form, you define the effective exchange rates to be used by default in the
created transactions and documents. For details, see Configuration of Rate Types and Rates: To Configure
Rates.
7. You define denominated accounts on the Chart of Accounts form. For details, see Denominated Accounts.
8. Optional: On the Automation Schedules (SM205020) form, you set up a schedule for the system to
automatically update the exchange rates. For details on using automation schedules, see Scheduling
Automated Processing.

Multicurrency Functionality: Configuration Prerequisites

Before starting to configure the multicurrency functionality, you must be sure that the system has been configured
properly and that all required entities have been created, as described in the following sections.

Enabling the Needed Features

On the Enable/Disable Features (CS100000) form, the minimum set of features has to be enabled. For details, see
Company Without Branches: To Configure a Company Without Branches.

Configuring the System

On the Companies (CS101500) form, you need to make sure that the companies of the organization have been
configured and that the appropriate actual ledger has been assigned to each of them. For more information, see
Company Without Branches: To Configure a Company Without Branches and General Ledger: To Create an Actual
Ledger.

On the Chart of Accounts (GL202500) form, you need to make sure that the chart of account has been configured.
For more information, see General Ledger: To Create a Chart of Accounts.
 Implementing Currency Management | 190

Multicurrency Functionality: Base Currency and Foreign Currencies

In Acumatica ERP, if the Multicurrency Accounting feature is disabled on the Enable/Disable Features (CS100000)
form, only one currency, which is called the base currency, is used for accounting. If this feature is enabled, you
can activate foreign currencies in the system, which will be used for accounting and reporting purposes. The
base currency will be used for reviewing journal transactions made in foreign currencies and for calculating and
converting amounts in imported records.
Regardless of whether this feature is enabled, the base currency is the company's functional currency, and it is
configured when a new tenant of Acumatica ERP is created. The base currency settings include the base currency
identifier, the currency symbol, and the required decimal precision. Once an administrator has created the
specified base currency in the system, the base currency identifier cannot be changed.

In the U100 dataset, the base currency has already been specified in the company settings on the
Companies (CS101500) form.

You can view all foreign currencies (which have been predefined based on the ISO 4217 standard) and their settings
on the Currencies (CM202000) form. To configure any foreign currency for use in accounting, you define this
currency as active (that is, you select the Active check box for it in the Summary area of the Currencies form) and
specify the accounts to be used in operations with this currency (on the GL Accounts tab of this form). If this check
box is selected for the currency, you can use this currency in financial documents and transactions in the general
ledger.

Multicurrency Functionality: Foreign Currency Settings

You edit the settings of a foreign currency on the Currencies (CM202000) form. On this form, you can edit the
currency identifier, currency symbol, decimal precision, and description. To be able to use a particular foreign
currency in transactions, you need to specify the accounts to be used in operations with this currency and define
the currency exchange rates.

We recommend that you assign currency identifiers and currency symbols according to the ISO 4217
international standard. Otherwise, you will not be able to use the online update functionality for the
currency rates.

Realized Gain and Realized Loss Accounts

When you activate a currency for use in accounting on the Currencies (CM202000) form, you specify the GL accounts
to be used to record the realized gains or losses in the Realized Gain and Loss Accounts section of the form. When
a payment or credit memo is applied to an AR document or a payment or debit adjustment is applied to an AP
document, the system calculates the realized gains and losses.

Unrealized Gain and Unrealized Loss Accounts

The exchange rates of foreign currencies change over time; thus, to determine the current value of open documents
in foreign currencies on a certain date, you need to revalue them by using the exchange rate effective on that
date. For details, see Revaluation of AP Documents: General Information and Revaluation of AR Documents: General
Information.
 Implementing Currency Management | 191

As a result of the revaluation process, the system calculates the unrealized gains and losses and creates an auto-
reversing revaluation batch. The GL accounts that you specify on the Currencies (CM202000) form for each foreign
currency, which you specify as follows, determine the resulting unrealized gains and losses:
• You specify the accounts to which unrealized gains and losses are posted in the Unrealized Gain Account
and Unrealized Loss Account boxes.

If subaccounts are used in your system, you specify the corresponding subaccounts in
the Unrealized Gain Subaccount and Unrealized Loss Subaccount boxes. The system
determines the specific subaccounts that will be used for recording unrealized gains and
losses according to the rule specified in the Combine Gain/Loss Sub. From box on the
Currency Management Preferences (CM101000) form.

• To post unrealized gains and losses to a separate account instead of the AP account of the vendor or the
AR account of the customer, you specify accounts in the AP Provisioning Account and AR Provisioning
Account boxes.

• If the provisioning account is not specified for the currency for which you are performing
a revaluation, the resulting unrealized gain or loss is posted directly to the vendor's AP
account or the customer's AR account.
• If subaccounts are used in your system, you specify the corresponding subaccounts in the
AP Provisioning Subaccount and AR Provisioning Subaccount boxes.

If needed, you can select specific unrealized gain and loss accounts (and subaccounts) to be used for customers of
a particular customer class on the Customer Classes (AR201000) form and for vendors of a particular class on the
Vendor Classes (AP201000) form. The system will generate a separate transaction in the batch for each customer
account of the customer class or each vendor account of the vendor class, respectively.

Revaluation Gain and Unrealized Loss Accounts

If your company performs operations in multiple currencies, you may need to maintain accounts denominated
in a foreign currency. Because of the changes in currency rates over time, you have to perform revaluations of
denominated accounts. For details, see Revaluation of AP Documents: General Information, Revaluation of AR
Documents: General Information, and Revaluation of Bank Accounts: General Information.

Gains or losses resulting from revaluation are posted to the revaluation gain or loss account (and subaccount, if
subaccounts are used in your system) that is specified in the Revaluation Gain and Loss Accounts section on the
Currencies (CM202000) form.

Rounding Gain and Loss Accounts

Any differences between the exact amounts and the rounded amounts that occur in operations with a foreign
currency are accumulated in the Rounding Gain and Rounding Loss accounts and the respective subaccounts (if
applicable), which you specify for the foreign currency in the Rounding Gain and Loss Accounts section on the
Currencies (CM202000) form.

Rounding differences for the base currency may occur if the conversion of journal entries made in a foreign
currency results in differences between the debit amounts and the credit amounts of the batch. You specify the
accounts for posting rounding gains and losses in the base currency on the General Ledger Preferences (GL102000)
form.

Multicurrency Functionality: Currency Rounding Rules

Acumatica ERP uses the following basic rules for rounding:

 Implementing Currency Management | 192

• The exchange rates should be specified with eight significant figures. The exchange rates themselves are not
rounded or truncated.

Exchange rates received from the Open Exchange Rates API service on the Refresh Currency
Rates (CM507000) form are provided with six decimal places.

• The exchange rates are used for converting the transaction amounts from a foreign currency to the base
currency.
• The amounts resulting from currency conversion operations are rounded up to the nearest currency subunit
if the digit in the next decimal place is 5 or greater.
In this topic, you will read about the accounts used for recording the gains and losses that result from rounding,
and you will consider an example of rounding in the system.

Rounding Examples
The Euro currency has two places aer the decimal point that denote the number of cents. Suppose that the result
of conversion of the U.S. dollar to the euro is an amount with more than two decimal places. The basic rounding
rules (noted above) are applied as follows:
• If the digit in the third decimal place is less than 5, the amount in the second decimal place stays as it is. (For
instance, 57.354 EUR becomes 57.35 EUR.)
• If the digit in the third decimal place is 5 or above, the amount in the second decimal place must be rounded
up. (For example, 57.785 EUR becomes 57.79 EUR.)

Multicurrency Functionality: Implementation Activity

In this implementation activity, you will learn how to enable the needed feature, configure currency management
preferences, and specify other settings in the system to configure the multicurrency functionality in Acumatica ERP.

Story
Suppose that the SweetLife Fruits & Jams company decided to enable the Multicurrency Accounting feature in its
system aer its customers from Canada and Europe requested invoices in their local currency instead of the U.S.
dollar. The company has hired an implementation consultant to configure the system to support these capabilities.
The consultant has already updated the chart of accounts with the needed accounts.
Acting as the implementation consultant, you now need to perform the following actions:
• Enable the feature
• Review the currency management preferences
• Review the base currency and configure the foreign currencies (the Canadian dollar and the euro, which are
assigned the CAD and EUR codes, respectively, in the system)

Process Overview
You will enable the needed feature on the Enable/Disable Features (CS100000) form and review the base currency
on the Currencies (CM202000) form. You will then specify the GL accounts for the base currency on the Currencies
form. On the Currency Management Preferences (CM101000) form, you will review the currency management
preferences used in the system. Finally, you will configure two foreign currencies on the Currencies form.
 Implementing Currency Management | 193

System Preparation
Before you start configuring the multicurrency functionality, you need to sign in to a company with the U100
dataset preloaded. Sign in as the implementation consultant by using the following credentials:
• Username: gibbs
• Password: 123

Step 1: Enabling the Needed Feature

You first need to enable the Multicurrency Accounting feature in the system, so that the needed forms and elements
will be available. Do the following:
1. Open the Enable/Disable Features (CS100000) form.
2. On the form toolbar, click Modify to make it possible to change the set of selected features.
3. Select the Multicurrency Accounting check box in the Standard Financials group.
4. On the form toolbar, click Enable to enable the selected feature.

Step 2: Reviewing the Base Currency

To review the base currency of the SweetLife company and its settings (which has already been specified for the
company in the U100 dataset during the configuration of the company), do the following:
1. Open the Currencies (CM202000) form.
2. In the Currency ID box, select USD.
3. In the Summary area, review the following settings:
• Currency Symbol: $
• Decimal Precision: 2
This setting specifies the number of digits aer the decimal point that will be used in arithmetic
operations with the base currency. The system will round the currency amounts in operations according
to the specified number. (For example, with Decimal Precision set to 2, the system will round 0.678 to
0.68.) To record the gains and losses from rounding operations, you need to specify the rounding gain
and loss accounts for the base currency.
• Active: Selected
For the base currency, the Active check box is always selected and unavailable.
• Use for Accounting: Selected
For the base currency, the Use for Accounting check box is always selected and unavailable.

Step 3: Specifying GL Accounts for the Base Currency

To specify the GL accounts used for the base currency (USD), do the following:
1. While you are still on the Currencies (CM202000) form with the USD currency selected, specify the following
settings:
• Realized Gain Account: 83000 - Realized Gain/Loss Currency
• Realized Loss Account: 83000 - Realized Gain/Loss Currency
• Rounding Gain Account: 83100 - Rounding Gain/Loss
• Rounding Loss Account: 83100 - Rounding Gain/Loss
 Implementing Currency Management | 194

These accounts will be used to record gains and losses resulting from rounding operations with the base
currency and to accumulate realized gains and losses resulting from operations with the base currency.
2. On the form toolbar, click Save to save your changes.

Step 4: Reviewing Currency Management Preferences

To review the currency management preferences, do the following:
1. Open the Currency Management Preferences (CM101000) form.
2. In the Setup and Numbering Settings section, review the ID of the batch numbering sequence that will be
used for multicurrency transactions.
3. In the Posting Settings section, make sure that the Automatically Post to GL on Release check box is
selected.
4. On the form toolbar, click Save.

Step 5: Activating Foreign Currencies for Use in Accounting

To activate the needed foreign currencies, CAD and EUR, to be used in accounting, do the following:
1. Open the Currencies (CM202000) form.
2. In the Currency ID box of the Summary area, select CAD.
3. Select the Active check box.
4. Select the Use for Accounting check box.
5. On the GL Accounts tab, specify the following settings for the Canadian dollar:
• Realized Gain Account: 42010 (Realized Gain CAD)
This account will accumulate the realized gains.
• Realized Loss Account: 82010 (Realized Loss CAD)
This account will accumulate the realized losses.
• Unrealized Gain Account: 84000 (Unrealized Gain/Loss Currency)
The account will be used for accumulating unrealized gains from AP and AR revaluations.
• Unrealized Loss Account: 84000 (Unrealized Gain/Loss Currency)
The account will be used for accumulating unrealized losses from AP and AR revaluations.
• Revaluation Gain Account: 84010 (Cash Account Revaluation Gain/Loss CAD)
This account will accumulate the gains from GL revaluations.
• Revaluation Loss Account: 84010 (Cash Account Revaluation Gain/Loss CAD)
This account will accumulate the losses from GL revaluations.
• Rounding Gain Account: 83100 (Rounding Gain/Loss)
This account will accumulate gains from rounding operations with this currency.
• Rounding Loss Account: 83100 (Rounding Gain/Loss)
This account will accumulate losses from rounding operations with this currency.

All of the selected accounts have been predefined in the U100 dataset.

6. On the form toolbar, click Save to save your changes.

7. In the Currency ID box of the Summary area, select EUR.
8. Select the Active check box.
 Implementing Currency Management | 195

9. Select the Use for Accounting check box.

10.On the GL Accounts tab, specify the following settings for the euro:
• Realized Gain Account: 83000 (Realized Gain/Loss Currency)
• Realized Loss Account: 83000 (Realized Gain/Loss Currency)
• Unrealized Gain Account: 84000 (Unrealized Gain/Loss Currency)
• Unrealized Loss Account: 84000 (Unrealized Gain/Loss Currency)
• Revaluation Gain Account: 83200 (Cash Account Revaluation Gain/Loss)
• Revaluation Loss Account: 83200 (Cash Account Revaluation Gain/Loss)
• Rounding Gain Account: 83100 (Rounding Gain/Loss)
• Rounding Loss Account: 83100 (Rounding Gain/Loss)

All of the selected accounts have been predefined in the U100 dataset.

11.On the form toolbar, click Save to save your changes.

Currency Rate Types and Current Rates

The topics of this chapter describe how to configure rate types and current rates for foreign currencies in Acumatica
ERP.

Configuration of Rate Types and Rates: General Information

In Acumatica ERP, a rate type includes exchange rates for a particular currency pair or multiple currency pairs.
You can update the exchange rates of foreign currencies for the base currency or any other foreign currency on
daily basis. You can configure any required currency in the system, and enter effective rates for the currencies
on any selected date. You can also view the rates that were effective on a specific date, as well as review the rate
history for any required currency pair.
Also, in Acumatica ERP, you can configure different settings for a particular currency pair that can be used in
operations with different vendors or customers, as well as in revaluations and translations. To do this, you create
rate types. For each rate type, you can specify currency rates and define how long they are effective in the system.
You can create any number of rate types. For a particular rate type, you can turn on the online currency rate
synchronization functionality to refresh the currency rates by using the Open Exchange Rates API online service.
This chapter provides information on configuring and maintaining the currency rates and rate types in Acumatica
ERP.

Learning Objectives
In this chapter, you will learn how to do the following:
• Create currency rate types
• Manually configure currency rates for foreign currencies
• Configure rates for a foreign currency by using the rate synchronization functionality

Applicable Scenarios
You configure currency rates in the system in the following cases:
 Implementing Currency Management | 196

• You want to have multiple custom currency rate types in addition to the default rate type. For example, you
can use one rate type in bills and invoices, another rate type for bank account revaluations, and yet another
rate type for translations of financial statements.
• You want to use a separate rate type to be assigned to particular customers or vendors; this rate type will be
used in documents created for these customers and vendors.

System Default Rate Type

The system automatically creates the default SPOT currency rate type when you specify the base currency on the
Companies (CS101500) form. The SPOT currency rate is the current rate of exchange between two currencies (that
is, the rate at which the currencies can be exchanged immediately). Although delivery is theoretically immediate,
the conventions of currency markets allow for up to two days for the settlement of a transaction.

Creation of Custom Rate Types

You configure rate types on the Currency Rate Types (CM201000) form. For each rate type, you specify the following
settings:
• The identifier of the currency rate type (in the Rate Type ID column).
• A description of the currency rate type (in the Description column).
• If the currency rate type is effective for a particular number of days, the number of days that it is effective (in
the Days Effective column), starting on the effective date that is specified for each currency rate.
By default, 0 is specified as the number of effective days. The currency rate is effective until a more recent
rate for the same currency and rate type becomes effective.
• An indicator of whether the currency rate can be updated by using the Open Exchange Rates API currency
rate update service (the Refresh Online check box).
For details, see Configuration of Rate Types and Rates: Ability to Refresh Rates.
• Optional: The rate adjustment percent to be applied to the rates returned by the online currency rate update
service (in the Online Rate Adjustment (%) column).
For example, suppose that you set this value to 0.05 and the actual currency rate is 1.101234. The system
would determine the rate as follows: 1.101234 * (1 + 0.0005) = 1.10178462.
Once you have defined the needed currency rate types, you assign an appropriate rate type to each currency rate
that you create on the Currency Rates (CM301000) form.

General Guidelines for Defining Currency Rates

In Acumatica ERP, the following guidelines are applied to currency rates:
• For a pair of currencies, you must define the rates in both directions. That is, if you have specified the
currency rate to translate Currency 1 to Currency 2, this rule is not applied when Currency 2 is translated to
Currency 1. For example, if you have an effective EUR-to-USD rate, the translation from USD to EUR could not
use it. You have to explicitly define the USD-to-EUR rate on the Currency Rates (CM301000) form.
• To set up different exchange rates that can be used in the same date range for the same currency pair,
you need to create different rate types on the Currency Rate Types (CM201000) form. You then can select
different rate types for the same currency pair and specify different exchange rates on the Currency Rates
form.

Selection of the Conversion Operation

When you define a currency rate on the Currency Rate Entry tab of the Currency Rates (CM301000) form, you need
to select an operation in the Mult./Div. column. The selected operation (Multiply or Divide) is performed on the
number of units of the From Currency, by using the currency rate, to convert it to the number of units in the To
Currency specified in the Summary area.
 Implementing Currency Management | 197

For example, suppose that by using a currency rate defined on this form, you are converting the euro (EUR) to
the U.S. dollar (USD); USD is thus selected as the To Currency. In the row with a From Currency of EUR, you have
specified Multiply in the Mult./Div. column and 1.1 in the Currency Rate column. Then the conversion rule from
EUR to USD is x EUR * 1.1 = y USD (for instance, 5 EUR * 1.1 = 5.5 USD). If you have specified Divide in the
Mult/Div column and 0.9 in the Currency Rate column, the conversion rule from EUR to USD is x EUR / 0.9 =
y USD (for instance, 5 EUR / 0.9 = 5.56 USD).

Configuration of Rate Types and Rates: Configuration Prerequisites

Before starting to configure rates and current rates, you must be sure that the system has been configured properly
and that all required entities have been created, as described in the following sections.

Enabling the Needed Features

On the Enable/Disable Features (CS100000) form, the Multicurrency Accounting feature must be enabled.

Configuring the System

Before you create rates in Acumatica ERP, you need to make sure that the following settings have been made in the
system:
• Rounding gain and loss accounts must be set up on the General Ledger Preferences (GL102000) form.
• Realized gains and loss settings must be set up on the Currency Management Preferences (CM101000) form.
• On the Currencies (CM202000) form, the CAD (Canadian dollars) and EUR (the euro) currencies must be
configured for use in accounting.
For details, see Multicurrency Functionality: Implementation Activity.

Configuration of Rate Types and Rates: Effective Rates

Acumatica ERP uses the effective currency rates for currency conversions in transactions and documents with a
foreign currency. Each currency rate is effective for a particular date range. This date range is defined based on the
setting for the related currency rate type in the Days Effective column of the Currency Rate Types (CM201000) form
as follows:
• A nonzero number of days is specified in this column: The currency rate is effective starting on the currency
effective date specified in the Currency Effective Date column on the Currency Rates (CM301000) form and
continuing for this number of days.
• A 0 is specified in this column: The currency rate is effective until a more recent rate for the same currency
and rate type becomes effective based on its Currency Effective Date on the Currency Rates form.
For example, for the SPOT rate type, if 0 is specified in the Days Effective column of the Currency Rate Types form,
and the rate is specified on May 1, 2023, then in a document dated 5/5/2023, the system will suggest (that is, insert
into the Exchange Rate box) the rate that was effective on May 1, 2023. For the SPOT rate type, if 2 is specified in the
Days Effective column, then in the document dated 5/5/2023, the system shows a warning that no rate is defined
on the specified date.
When you enter the next record for the same currency pair and rate type, or when the specified number of effective
days has passed, the rate becomes a historical rate. For details, see Configuration of Rate Types and Rates: Historical
Rates.
 Implementing Currency Management | 198

Configuration of Rate Types and Rates: Assignment of Default Rate Types

In Acumatica ERP, you can assign the default rate types that are used for documents in different functional areas
of the system, as well as the default rate types for documents of a particular cash account, customer, or vendor of
a particular class, customer, or vendor. If you have specified the appropriate default rate types, when you create a
document, the system uses the default rate type to fill in the Exchange Rate box (right of the Currency box in the
Summary area of the data entry form of the document) with the effective currency rate that is related to this rate
type, the currency of the document, and the date of the document.

When you enter a currency in Acumatica ERP, you use a currency box, which is a special type of
lookup box with the following controls:
• The selector button, which you can click to open the currency lookup table
• The Exchange Rate box, where the system inserts the default rate (or you can select another
rate)
• The Currency Toggle button, which you can click to switch the currency of the amounts
between the base currency and the selected foreign currency

Default Rate Type for GL Transactions and Translations

For transactions in a foreign currency in the general ledger and for translations, you can assign the default rate type
in the GL Rate Type box in the Default Rate Types section of the Currency Management Preferences (CM101000)
form. By default, the SPOT rate type is used for GL transactions and for translation-related transactions.

Default Rate Type for Cash Entries and Funds Transfers

For all cash entries and funds transfers in a foreign currency, by default, the SPOT rate type is specified in the CA
Rate Type box in the Default Rate Types section of the Currency Management Preferences (CM101000) form. You
can override the rate type, if necessary.
If you will generally use a particular currency rate in cash entries and funds transfers that include a particular cash
account, you assign this rate to a particular rate type and specify this rate type as the default for the cash account.
To do this, you assign the default currency rate type in the Curr. Rate Type box on the Cash Accounts (CA202000)
form. The system will use the assigned currency rate as the default currency rate (which can be overridden) in the
cash entries and funds transfers created for the cash account in the system.

Default Rate Type for AR Documents

For all documents in a foreign currency in the accounts receivable subledger, by default, the SPOT rate type is
specified in the AR Rate Type box of the Default Rate Types section of the Currency Management Preferences
(CM101000) form. You can override the rate type, if necessary.
If you will generally use a particular currency rate in documents for customers of a particular class, you enter the
rate for a particular rate type and specify the rate type as the default for the customer class. You specify the default
currency rate type in the Currency Rate Type box on the General tab (Default Financial Settings section) of the
Customer Classes (AR201000) form.

If you will generally use a particular currency rate in documents for a particular customer, you can assign this rate
to a particular rate type and specify this rate type as the default for the customer. You assign the default currency
rate type in the Curr. Rate Type box in the Financial Settings section of the Financial tab on the Customers
(AR303000) form.
 Implementing Currency Management | 199

Default Rate Type for AP Documents

For all documents in a foreign currency in the accounts payable subledger, by default, the SPOT rate type is
specified in the AP Rate Type box in the Default Rate Types section of the Currency Management Preferences
(CM101000) form. You can override the rate type, if necessary.
If you will generally use a particular currency rate in documents for vendors of a particular class, you assign the
rate to a particular rate type and specify the rate type as the default for the vendor class. You specify the default
currency rate type in the Curr. Rate Type box on the General tab (Default Financial Settings section) of the Vendor
Classes (AP201000) form.

If you want the system to insert a particular default currency rate in documents for a particular vendor, you can
assign this rate to a particular rate type and specify this rate type as the default for the vendor. You specify the
default currency rate type in the Curr. Rate Type box in the Financial Settings section of the Financial tab on the
Vendors (AP303000) form.

Ability to Override a Class, Customer, or Vendor Currency Rate

If you want users to have the ability to override the default currency rate and exchange rate of a customer class,
vendor class, customer, or vendor in the documents of the customer class, vendor class, customer, or vendor,
respectively, you select the Enable Rate Override check box on the corresponding form: Customer Classes
(AR201000), Vendor Classes (AP201000), Customers (AR303000), or Vendors (AP303000) form.
If this check box is selected, you can override the currency rate type and the exchange rate by clicking the
Exchange Rate box when you enter a document on the data entry form. When you click this button, the Rate
Selection dialog box opens. In this dialog box, you can select another currency rate type for the document, the
effective date of the rate, and the currency rates.

Default Rate Types for Revaluations

To perform revaluations, you have to specify the default rate types for revaluations in the Default Rate Types
section of the Currency Management Preferences (CM101000) form as follows:
• To perform GL revaluation for accounts denominated in a foreign currency, you specify the rate type in the
GL Revaluation Rate Type box.
• To perform revaluation of open AR documents, you specify the rate type in the AR Revaluation Rate Type
box.
• To perform revaluation of open AP documents, you specify the rate type in the AP Revaluation Rate Type
box.

Configuration of Rate Types and Rates: Historical Rates

In Acumatica ERP, currency exchange rates can be specified as oen as is needed for a particular currency pair.
Each currency rate that is created is effective for a particular date range, aer which it is considered a historical rate.
A historical rate can be used as the effective rate for operations that have taken place during the date range when
the rate was effective.
In this topic, you will read about how the effective date range is defined, how to view historical rates in the system,
and how to use historical rates.
 Implementing Currency Management | 200

The Date Range of a Currency Rate

Each currency rate is effective for a particular date range, which is defined based on the setting for the related
currency rate type in the Days Effective column on the Currency Rate Types (CM201000) form as follows:
• A nonzero number of days is specified in this column: The currency rate is effective starting on the currency
effective date specified in the Currency Effective Date column on the Currency Rates (CM301000) form and
continuing for this number of days.
• A 0 is specified in this column: The currency rate is effective until a more recent rate for the same currency
and rate type becomes effective based on its Currency Effective Date on the Currency Rates form.
When you enter the next record for the same rate type or when the specified number of effective days has passed,
the rate becomes a historical rate.

Viewing of the Historical Currency Rates

You can view the historical currency rates you most need at a given time by using targeted reports and forms:
• To view the list of all rates for a particular date range sorted by the effective date of each rate, you run the
Currency Rate History by Date (CM651000) report.
Before you run the report, you specify the date range (From Date and To Date) for which you want to view
currency rates. You can also select the particular currency and currency rate type for which you want to view
the list of rates.
• To view the list of all rates for a particular date range sorted by the currency from which conversion is
performed, you run the Currency Rate History by ID (CM650500) report.
Before you run the report, you specify the date range (From Date and To Date) for which you want to view
currency rates. You can also select the particular currency and currency rate type for which you want to view
the list of rates.
• To view the rates that are effective on a particular date for a particular target currency, you use the Currency
Rates (CM301000) form.
On this form, select the target currency (To Currency) and the required date (Effective Date). The list of
historical rates that were effective on the selected date appears in the table on the Effective Currency
Rates tab. The list includes the rates (and the currency rate types) for all the source currencies (From
Currency column) that have been specified for the target currency.

Use of the Historical Currency Rates

You can use historical rates as follows:
• For entering transactions for dates before the effective date of a currency rate
• For calculating realized and unrealized gains and losses
• For performing revaluations
• For translating certain account balances (for example, the capital account)

Configuration of Rate Types and Rates: To Configure Rates

In this implementation activity, you will learn how to manually create rate types and exchange rates of the SPOT
type that will be effective on different dates.
 Implementing Currency Management | 201

Story
Suppose that the initial configuration of the multicurrency functionality has been completed, the implementation
consultant has to configure exchange rates for the currencies that you set up in the system in Multicurrency
Functionality: Implementation Activity—the Canadian dollar (CAD) and the euro (EUR). The consultant has decided to
manually create these rates.
Acting as the implementation consultant, you will manually create the exchange rates for the CAD and EUR
currencies.

Configuration Overview
For the purposes of this activity, the following features have been enabled on the Enable/Disable Features
(CS100000) form:
• Standard Financials, which provides the standard financial functionality
• Multibranch Support, which supports multiple branches in your instance of Acumatica ERP
• Multicompany Support, which supports multiple companies within one tenant
• Multicurrency Accounting, which enables multicurrency operations in the system
On the Currencies (AP101000) form, the settings of the base currency (USD) and the foreign currencies (CAD and
EUR) have been defined as described in Multicurrency Functionality: Implementation Activity.

Process Overview
Before beginning the creation of rates, you will review the SPOT rate on the Currency Rate Types (СM201000) form
and the default rate types on the Currency Management Preferences (CM101000) form. You will then create rate
types effective starting on different dates for the CAD currency on the Currency Rates (CM301000) form. You will
then run a report on the Currency Rate History by Date (CM651000) form to review the historical rates of CAD for a
particular range of dates. On the Currency Rates form, you will create rate types effective starting on different dates
for the EUR currency and will then review the EUR historical rates by running the Currency Rate History by Date
report.

System Preparation
Before you start performing the steps of this activity, you need to sign in to a company with the U100 dataset
preloaded. You must perform the previous activity of this guide before you perform this activity, and sign in to the
company where the prerequisite activity has been performed.
Sign in as the implementation consultant by using the following credentials:
• Username: gibbs
• Password: 123

Step 1: Reviewing the SPOT Rate Type and Default Rate Types
To review the SPOT rate type (which is automatically created by the system) and the default rate types, do the
following:
1. Open the Currency Rate Types (CM201000) form.
2. Review the SPOT rate type.
This rate type, which is the only one currently defined in the system, was automatically created when the
system created the base currency.
3. Open the Currency Management Preferences (CM101000) form.
 Implementing Currency Management | 202

4. Review the settings in the Default Rate Types section.

Notice that the SPOT rate type is automatically specified as the default rate type for the following areas of
the system:
• General ledger (GL Rate Type): This is the currency rate type that is used in GL transactions by default.
• Cash management (CA Rate Type): This is the currency rate type that is used in cash entries and funds
transfers if no rate type is associated with the selected cash account.
• Accounts receivable (AR Rate Type): This is the currency rate type that is used in AR documents if no rate
type is associated with the selected customer.
• Accounts payable (AP Rate Type): This is the currency rate type that is used in AP documents if no rate
type is associated with the selected vendor.
• Project management (PM Rate Type): This is the currency rate type that is used in project documents if
no rate type is associated with the selected customer.

Step 2: Creating Currency Rates for CAD

To create currency rates for CAD, do the following:
1. Open the Currency Rates (CM301000) form.
2. In the To Currency box, select USD. This is the currency to which the conversion with the specified exchange
rate should be performed.
3. In the Effective Date box, enter 1/1/2023. (In the process activities of this guide, you will work starting from
the 01-2023 period.)
4. On the Currency Rate Entry tab, click Add Row on the table toolbar, and specify the following settings for
the added row:
• From Currency: CAD
• Currency Rate Type: SPOT
• Currency Effective Date: 1/1/2023
• Currency Rate: 1.2673
• Mult./Div.: Divide
The From Currency box specifies which currency the conversion should be performed from by using
the Currency Rate and the operation selected in the Mult./Div. box. That is, the conversion rule from
CAD to USD is the following: 1 CAD = 1 / 1.2673 USD. Also, for each created currency rate, the
system calculates the Rate Reciprocal, which is the inverted Currency Rate. (This column is provided for
informational purposes only; the rate will not be used by the system.)
5. On the form toolbar, click Save to save your changes.
The created rate is effective starting on January 1, 2023, and does not have an expiration date. The system
will use this rate for currency conversion in any document with a date of January 1, 2023, or later.

In the current system settings, the rates of the SPOT type have Days Effective set to 0 on the
Currency Rate Types (CM201000) form. This means that the rates of this type are used in all the
documents with a date on or aer the currency effective date. If you specify a nonzero number,
the rates of this type will be effective for the specified number of days.

6. In the Effective Date box, specify 1/15/2023.

7. On the Currency Rate Entry tab, add a row with the following settings:
• From Currency: CAD
• Currency Rate Type: SPOT
• Currency Effective Date: 1/15/2023
• Currency Rate: 1.2752
 Implementing Currency Management | 203

• Mult./Div.: Divide
8. On the form toolbar, click Save to save your changes.
This exchange rate will be used in any transaction with a transaction date of January 15, 2023, or later. The
previously created rate becomes a historical rate and will be used as the effective rate in any transaction
with a date from January 1, 2023 through January 14, 2023.
9. In the Effective Date box, specify 1/30/2023.
10.On the Currency Rate Entry tab, add a row with the following settings:
• From Currency: CAD
• Currency Rate Type: SPOT
• Currency Effective Date: 1/30/2023
• Currency Rate: 1.2776
• Mult./Div.: Divide
11.On the form toolbar, click Save to save your changes.
The specified rate is now effective starting on January 30, 2023. The previously specified rate will be used in
any transaction with a date from January 15, 2023 through January 29, 2023.
12.In the Effective Date box, specify 2/10/2023.
13.On the Currency Rate Entry tab, add a row with the following settings:
• From Currency: CAD
• Currency Rate Type: SPOT
• Currency Effective Date: 2/10/2023
• Currency Rate: 1.2697
• Mult./Div.: Divide
14.On the form toolbar, click Save to save the row you have entered.
The specified rate is now effective starting on February 10, 2023. The previously specified rate will be used in
any transaction with a date from January 30, 2023 through February 9, 2023.
15.Review the Effective Currency Rates tab.
The table displays the currency rate specified for the foreign currency that is effective on the date specified
in the Effective Date box.

Step 3: Reviewing the Historical Rates of CAD

To review the list of all CAD rates that are or have been effective in a particular date range, do the following:
1. Open the Currency Rate History by Date (CM651000) form.
2. On the Report Parameters tab, specify the following parameters:
• From Date: 1/1/2023
• To Date: 2/28/2023
• Currency: CAD
3. On the form toolbar, click Run Report.
4. Review the generated report, which displays the exchange rates defined for conversion from CAD to USD and
from USD to CAD that are effective in the specified date range.

Step 4: Creating Currency Rates for EUR

To create currency rates for EUR, do the following:
 Implementing Currency Management | 204

1. Open the Currency Rates (CM301000) form.

2. In the To Currency box, select USD.
3. In the Effective Date box, enter 1/1/2023.
4. On the Currency Rate Entry tab, click Add Row on the table toolbar, and specify the following settings for
the added row:
• From Currency: EUR
• Currency Rate Type: SPOT
• Currency Effective Date: 1/1/2023
• Currency Rate: 0.8792
• Mult./Div.: Divide
The From Currency box specifies which currency the conversion should be performed from by using the
Currency Rate and the operation selected in the Mult./Div. box. That is, the conversion rule from EUR to
USD is the following: 1 EUR = 1 / 0.8792 USD.
5. On the form toolbar, click Save to save your changes.
6. In the Effective Date box, specify 1/15/2023.
7. On the Currency Rate Entry tab, add a row with the following settings:
• From Currency: EUR
• Currency Rate Type: SPOT
• Currency Effective Date: 1/15/2023
• Currency Rate: 0.8760
• Mult./Div.: Divide
8. On the form toolbar, click Save to save your changes.
9. In the Effective Date box, specify 1/30/2023.
10.On the Currency Rate Entry tab, add a row with the following settings:
• From Currency: EUR
• Currency Rate Type: SPOT
• Currency Effective Date: 1/30/2023
• Currency Rate: 0.8967
• Mult./Div.: Divide
11.On the form toolbar, click Save to save your changes.
12.In the Effective Date box, specify 2/10/2023.
13.On the Currency Rate Entry tab, add a row with the following settings:
• From Currency: EUR
• Currency Rate Type: SPOT
• Currency Effective Date: 2/10/2023
• Currency Rate: 0.8763
• Mult./Div.: Divide
14.On the form toolbar, click Save to save your changes.

Step 5: Reviewing the Historical Rates of EUR

To review the list of all EUR rates that are or have been effective in a particular date range, do the following:
1. Open the Currency Rate History by Date (CM651000) form.
 Implementing Currency Management | 205

2. On the Report Parameters tab, specify the following parameters:

• From Date: 1/1/2023
• To Date: 2/28/2023
• Currency: EUR
3. On the form toolbar, click Run Report.
4. Review the generated report, which displays the exchange rates defined for conversion from EUR to USD and
from USD to EUR that are effective in the specified date range.

Configuration of Rate Types and Rates: Ability to Refresh Rates

In Acumatica ERP, you can set up the ability to refresh currency rates by using the Open Exchange Rates API
currency rate update service. Also, you can set up the system to automatically refresh the currency rates according
to a schedule that meets your business needs. If needed, you can configure the system to adjust a currency rate
upward or downward for a particular rate type during the automatic updating of rates.

Setting Up Updates of Currency Rates

You can turn on this functionality for a particular currency rate type by selecting the Refresh Online check box for
the type on the Currency Rate Types (CM201000) form.
If the Refresh Online check box is selected for the particular rate type, you can refresh the currency exchange rates
for the currencies of this rate type each time you need to by processing the needed rates on the Refresh Currency
Rates (CM507000) form. When the process of refreshing rates has been completed, the list of updated currency
rates appears in the table of this form, and the rates are updated on the Currency Rate Entry tab of the Currency
Rates (CM301000) form.

Scheduling the Currency Rate Update Process

You can automate the process of updating the currency exchange rates by scheduling this process. To create a
schedule, on the form toolbar of the Refresh Currency Rates (CM507000) form, click Schedules > Add. On the
Automation Schedules (SM205020) form, which opens, you create the schedule by specifying the appropriate
settings and saving the schedule.
For details, see Automated Processing: General Information.

Adjusting a Currency Rate

You may need to make the effective rates of the currencies less or more than the rates downloaded from the Open
Exchange Rates API online service. To do so, on the Currency Rate Types (CM201000) form, for the particular rate
type, you select the Refresh Online check box and specify the appropriate adjustment value in the Online Rate
Adjustment (%) column. The exchange rates of currencies of that type received during the update process will be
adjusted upward or downward by the adjustment percent specified here. You can create as many currency rate
types as you need, each with a different adjustment percent.
For example, suppose that for the reimbursement of expense claims, a company wants to take into account the
fees incurred by the employee for exchanging the currency, or adjust for the rate fluctuation between the date of
the expenses and the date of the expense reimbursement. For such cases, you can create a special rate type (for
example, the EXPENSES rate type) and specify the adjustment value (expressed as a percent) for that rate type, so
that this adjustment will always be applied to the rates of the currencies of that type during the update process.
 Implementing Currency Management | 206

Configuration of Rate Types and Rates: To Set Up Refreshing of Rates

In this implementation activity, you will learn how to set up the refreshing of currency rates by using the Open
Exchange Rates API online service, and then test the refreshing of currency rates.

Story
Suppose that the initial configuration of the multicurrency functionality has been completed, the implementation
consultant has to update exchange rates for one of the currencies that you set up in the system in Multicurrency
Functionality: Implementation Activity—the euro (EUR). The consultant has decided to use the Open Exchange Rates
API online service to refresh the rates for the euro.

Acting as the implementation consultant, you will automatically refresh the exchange rates for the EUR currency.

Configuration Overview
For the purposes of this activity, the following features have been enabled on the Enable/Disable Features
(CS100000) form:
• Standard Financials, which provides the standard financial functionality
• Multibranch Support, which supports multiple branches in your instance of Acumatica ERP
• Multicompany Support, which supports multiple companies within one tenant
• Multicurrency Accounting, which enables multicurrency operations in the system
On the Currencies (AP101000) form, the settings of the base currency (USD) and a foreign currency (EUR) have been
defined.

Process Overview
On the Currency Rate Types (CM201000) form, you will enable the refreshing of currency rates for the SPOT rate
type. Then on the Refresh Currency Rates (CM507000) form, you will run the process of refreshing currency rates for
EUR for today's effective date. Finally, you will run a report on the Currency Rate History by Date (CM651000) form to
review the historical rates for a particular range of dates.

System Preparation
To prepare the system, do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. To sign in as
an implementation consultant, use the gibbs username and the 123 password.
2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to today’s date. For simplicity, in this activity, you will create and process
all documents in the system on this business date.

Step 1: Enabling the Refresh of Currency Rates for the SPOT Rate Type
To enable the functionality of refreshing currency rates for the SPOT rate type, do the following:
1. Open the Currency Rate Types (CM201000) form.
2. For the only rate type in the table (SPOT), select the check box in the Refresh Online column.
3. On the form toolbar, click Save to save your changes.
 Implementing Currency Management | 207

Step 2: Refreshing the Currency Rates

To refresh currency rates for the EUR currency, do the following:
1. Open the Refresh Currency Rates (CM507000) form.
2. In the Selection area, specify the following settings:
• To Currency: USD
• Currency Effective Date: today's date (inserted by default)
• Rate Type: SPOT
3. In the table, select the Included check box for the row with the EUR currency.
4. On the form toolbar, click Process. In the Processing dialog box, which opens, click Close.

Step 3: Reviewing Historical Rates

To review the list of all EUR rates that are or have been effective in a particular date range, do the following:
1. Open the Currency Rate History by Date (CM651000) form.
2. On the Report Parameters tab, specify the following parameters:
• From Date: 1/1/2022
• To Date: 2/28/2022
• Currency: EUR
3. On the form toolbar, click Run Report.
4. Review the generated report, which displays the exchange rates defined for conversion from EUR to USD
that are effective in the specified date range.

To Create a Rate Type

You use the Currency Rate Types (CM201000) form to create a rate type in Acumatica ERP.

To Create a Rate Type

1. Open the Currency Rate Types (CM201000) form.
2. On the table toolbar, click Add Row.
3. In the Rate Type ID column, enter the unique identifier you want to use for the rate type being created.
4. In the Description column, enter a detailed description of the rate type that will help users to identify this
type later.
5. Optional: In the Days Effective column, specify the number of days during which the rate is considered
current for currencies of the type, starting from the date specified in the Currency Effective Date box on the
Currency Rates (CM301000) form for the particular currency.
6. Optional: Select the Refresh Online check box for the rate type if currency exchange rates for the type can
be updated (manually or automatically) by using Open Exchange Rates API. For details, see Configuration of
Rate Types and Rates: Ability to Refresh Rates.
 Implementing Currency Management | 208

If the check box is selected for the rate type, all active currencies that are associated with
this rate type on the Currency Rates (CM301000) form, will appear in the table on the
Refresh Currency Rates (CM507000) form. You can refresh the exchange rates manually or
automatically (according to a schedule).

7. Optional: In the Online Rate Adjustment (%) box, specify the adjustment percent that will be applied to the
exchange rate returned from the Open Exchange Rates API currency rate update service. The rate applied to
the documents will be increased (if you specify a positive number) or decreased (if you specify a negative
number) by the percent you specify in this box.
8. On the form toolbar, click Save.

Related Links
• Configuration of Rate Types and Rates: General Information
• Configuration of Rate Types and Rates: Ability to Refresh Rates
• Configuration of Rate Types and Rates: Historical Rates
• Currency Rate Types
• Currency Rates

To View the Effective Currency Rates

You use the Currency Rates (CM301000) form to view the exchange rates for a particular currency that are currently
in effect. You view these rates by target currency (that is, the currency to which the conversion is performed).

To View the Effective Currency Rates

1. Open the Currency Rates (CM301000) form.
2. In the Selection area, in the To Currency box, select the target currency (by its ID) of the currency rates you
want to view.
By default, the base currency is selected.
3. In the Effective Date box, select the date for which you want to view currency rate.
By default, the current business date is selected.
4. On the Effective Currency Rates tab, review the currency rates for the selected currency on the selected
effective date.

To View Historical Currency Rates

You can use the following reports and forms to view historical currency rates:
• To view the list of all rates for a particular date range sorted by the effective date of each rate, you run the
Currency Rate History by Date (CM651000) report.
• To view the list of all rates for a particular date range sorted by the currency from which conversion is
performed, you run the Currency Rate History by ID (CM650500) report.
• To view the rates that are effective on a particular date for a particular target currency, you use the Currency
Rates (CM301000) form. For step-by-step instructions, see To View the Effective Currency Rates.
 Implementing Currency Management | 209

To View Historical Currency Rates in the Currency Rate History by Date (CM651000) Report
1. Open the Currency Rate History by Date (CM651000) report.
2. On the Report Parameters tab, in the From Date box, select the start date of the date range for which you
want to view currency rates.
By default, the current business date is selected.
3. In the To Date box, select the end date of the date range for which you want to view currency rates.
By default, the current business date is selected.
4. Optional: In the Currency box, select the currency for which you want to view currency rates.
5. Optional: In the Rate Type box, select the currency rate type for which you want to view currency rates.
6. On the form toolbar, click Run Report.

To View Historical Currency Rates in the Currency Rate History by ID (CM650500) Report
1. Open the Currency Rate History by ID (CM650500) report.
2. On the Report Parameters tab, in the From Date box, select the start date of the date range for which you
want to view currency rates.
By default, the current business date is selected.
3. In the To Date box, select the end date of the date range for which you want to view currency rates.
By default, the current business date is selected.
4. Optional: In the Currency box, select the currency for which you want to view currency rates.
5. Optional: In the Rate Type box, select the currency rate type for which you want to view currency rates.
6. On the form toolbar, click Run Report.

Currency Translation Definitions

The topics of this chapter describe how to configure the reporting ledger and the translation definition needed for
the translation of financial statements in Acumatica ERP.

Translation Definitions: General Information

In Acumatica ERP, you may need to restate account balances from the base currency (or a foreign currency) to any
foreign currency configured for use in the system. The operation of restating account balances from one currency
(base or foreign) to any foreign currency configured for use in accounting is called a translation. The translation is
used for reporting purposes.
To perform a translation, the system uses a translation definition, which defines the source ledger and destination
ledger, the accounts to be translated, and the rules to be used for translation.

To enable translation of financial statements in the system, the Multicurrency Accounting and
Translation of Financial Statements features must be enabled on the Enable/Disable Features
(CS100000) form.
 Implementing Currency Management | 210

Learning Objectives
In this chapter, you will learn how to do the following:
• Configure the system for translating financial statements
• Configure a translation definition

Applicable Scenarios
You perform a translation of financial statements if your company is a subsidiary of a larger entity and its financial
statements are included in the consolidated statements of the larger entity, which are prepared in a different
currency.

Creation of a Translation Definition

You use the Translation Definition (CM203000) form to define rules for the translation. When you create a new
translation definition, you specify the following information:
• The source ledger—that is, the ledger from which account balances to be translated are copied
• The destination ledger—that is, the ledger to which the translated balances are recorded
• If your company has multiple branches, the branch for which translations will be performed
If you do not specify the branch, the translation is performed for all branches of all companies.
• The ranges of accounts and subaccounts (if subaccounts are used in your system) to be translated
• The translation methods to be used for each range of accounts and subaccounts
• The rate types to be used for translation for each range of accounts and subaccounts

Translation Ledgers
You specify the ledger from which account balances to be translated are copied and the ledger of the Reporting
type to which the translated balances are recorded in the Source Ledger ID and Destination Ledger ID boxes,
respectively, on the Translation Definition (CM203000) form. For details on ledgers, see Managing Ledgers.
The translation is performed from the currency of the source ledger to the currency of the destination ledger. If
an Actual ledger is selected as the source ledger, the translation will be performed from the base currency. If any
Reporting ledger is selected as a source ledger, the translation will be performed from the foreign currency assigned
to this ledger to the foreign currency of the destination ledger.

Range of Accounts for Translations

On the Translation Definition (CM203000) form, you specify the starting and ending accounts in the Account
From and Account To columns for each range of accounts for which you want to perform translation. If you use
subaccounts in your system, you can specify the starting and ending subaccounts in the Subaccount From and
Subaccount To columns for each range of accounts. The ranges of account-subaccount pairs should not intersect or
contain the same pairs.
You do not need to include the Year-to-Date (YTD) Net Income account in the translation definition. This account,
which accumulates the difference between the amounts posted to income and expense accounts, is updated by
every transaction posted to these accounts. Thus, to get the translated balance of the YTD Net Income account
in the reporting ledger, you translate the balances of the income and expense accounts, and then the system
calculates the account balance based on the translated amounts.
To get the correct translated balance of the Retained Earnings account in the reporting ledger, you need to translate
the period-to-date (PTD) balances of income and expense accounts in each period, starting from the very first one.
 Implementing Currency Management | 211

Translation Methods
Acumatica ERP provides the following translation methods, which you can select for different ranges of accounts
and subaccounts (if applicable) in the Translation Method column of the Translation Definition (CM203000) form:
• YTD Balance: To convert the account balances at the end of the translation period. When this method is
selected, to get the translated balance of each of the specified accounts (generally assets and liabilities),
the system converts the account balances at the end of the translation period by using the exchange rate
of the selected type that is effective on the translation date. If there is a difference between the translated
balance and the account balance stored in the destination ledger for the previous period, a transaction will
be generated to adjust the balance.
• PTD Balance: To convert the period-to-date (PTD) balance for the translation period. When this method is
selected, to get the translated period-to-date balance of each of the specified accounts (generally income
and expenses), the system converts the PTD balance for the translation period by using the exchange rate of
the selected type that is effective on the translation date. As a result, the account balance in the reporting
ledger is the total of the translated PTD balances for every period of the financial year.
If you are translating the account balances from one foreign currency to another, you should maintain direct
exchange rates between those foreign currencies in the currency exchange rate database (for the PTD Balance and
YTD Balance translation methods, at least two rate types for each period).

Translation Definitions: Configuration Prerequisites

The following sections provide details you can use to ensure that the system is configured properly for performing
configuration of a translation definition, and to understand (and change, if needed) the settings that affect the
processing workflow.

Implementation Checklist
We recommend that before you initially perform configuration of a translation definition, you make sure the
needed features have been enabled, settings have been specified, and entities have been created, as summarized
in the following checklist.

Form Tasks to Perform

Enable/Disable Features (CS100000) Make sure that the Standard Financials, Multicurren-
cy Accounting, and Translation of Financial Statements
features have been enabled.
For details on configuring the multicurrency function-
ality, see Multicurrency Functionality: Implementation Ac-
tivity.

Chart of Accounts (GL202500) Make sure that the accounts that will be used for
recording translation gains and losses have been cre-
ated.

Company Financial Calendar (GL201100) Make sure that the financial period for which you want
to configure a translation definition has the Open sta-
tus.

Currency Management Preferences (CM101000) Make sure that the accounts for recording translation
gains and losses have been specified.
 Implementing Currency Management | 212

Form Tasks to Perform

Currencies (CM202000) Make sure that the translation gain and loss accounts
have been specified for each foreign currency.

Currency Rate Types (CM201000) Make sure that the rate types used for translations
have been defined.

Currency Rates (CM201000) Make sure that the effective exchange rates to be used
for translations have been defined. For details, see
Configuration of Rate Types and Rates: To Configure
Rates and Configuration of Rate Types and Rates: To
Set Up Refreshing of Rates.

Ledgers (GL201500) You create a ledger of the Reporting type to be used for
keeping the results of translations. For details on re-
porting ledgers, see Reporting Ledgers.

Other Settings That Affect the Workflow

You can affect the workflow of configuring the translation definition by specifying additional settings as follows:
• To cause translation batches to be automatically posted to the general ledger, on the Currency Management
Preferences (CM101000) form, select the Automatically Post to GL on Release check box.

Validation of Configuration
To make sure that all configuration has been performed correctly, we recommend that in your system, you perform
instructions similar to those described in Translation Definitions: Implementation Activity.

Translation Definitions: Implementation Activity

The following activity will walk you through the process of creating a translation definition.

Story
Suppose that in December 2022, SweetLife Fruits & Jams, which operates in the United States, became a subsidiary
of a larger company that operates in Europe. Thus, the accountants of SweetLife need to prepare the company’s
financial statements in the functional currency of the head company (that is, in the euro), so that these statements
can be included in the consolidated statements of the head company.
Further suppose that SweetLife's chief accountant has decided that balances have to be translated based on the
following rules:
• Assets and liabilities should be translated by using the current exchange rate.
• The Capital account should be translated by using the historical rate.
• Revenues, expenses, gains, and losses should be translated by using the average exchange rate for the
period that is used for translation.
Acting as a SweetLife accountant, you need to perform the needed configuration steps in the system and create a
translation definition.
 Implementing Currency Management | 213

Configuration Overview
For the purposes of this activity, the following features have been enabled on the Enable/Disable Features
(CS100000) form:
• Standard Financials, which provides the standard financial functionality
• Multibranch Support, which supports multiple branches in your instance of Acumatica ERP
• Multicompany Support, which supports multiple companies within one tenant
• Multicurrency Accounting, which enables multicurrency operations in the system
On the Chart of Accounts (GL202500) form, the 27001 (Translation Gain/Loss) account has been created.
On the Ledgers (GL201500) form, the ACTUAL ledger with the Actual type has been predefined.

Process Overview
In this activity, you will enable the needed feature on the Enable/Disable Features (CS100000) form. On the
Currencies (CM202000) form, you will specify translation gain and loss accounts for USD (the base currency) and
EUR (a foreign currency). On the Currency Rate Types (CM201000) form, you will define the rate types to be used in
a translation definition, and create currency rates for EUR on the Currency Rates (CM301000) form. On the Ledgers
(GL201500) form, you will create a ledger of the Reporting type to hold the results of translations. Finally, on the
Translation Definition (CM203000) form, you will create a translation definition that will later be used for translating
account balances.

System Preparation
To prepare the system for performing the steps of this activity, do the following:
1. Launch the Acumatica ERP 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

You must perform the previous activities of this guide before you perform this activity, and
sign in to the company where the prerequisite activities have been performed.

2. On the Company and Branch Selection menu, also on the top pane of the Acumatica ERP 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.
3. As a prerequisite activity, make sure that the multicurrency accounting functionality has been configured as
described in Multicurrency Functionality: Implementation Activity and Configuration of Rate Types and Rates: To
Configure Rates.

Step 1: Enabling the Needed Feature

To enable the Translation of Financial Statements feature, do the following:
1. Open the Enable/Disable Features (CS100000) form.
2. On the form toolbar, click Modify to make it possible to change the set of selected features.
3. In the Advanced Financials group of features, select the Translation of Financial Statements check box.
4. On the form toolbar, click Enable to enable the selected feature.
 Implementing Currency Management | 214

Step 2: Defining Currency Rate Types

To define the currency rate types for translations, do the following:
1. Open the Currency Rate Types (CM201000) form.
2. On the form toolbar, click Add Row and specify the following settings for the added row:
• Rate Type ID: AVG
• Description: Monthly Average Rate
This currency rate type will keep the average rates calculated for the particular currencies for each month.
This rate type will be used for translating the balances of income, expenses, and retained earnings.
3. On the form toolbar, click Save to save your changes.
4. Click Add Row and specify the following settings for another row:
• Rate Type ID: HIST
• Description: Historical Rate
This currency rate type will keep the historical rates to be used for translating the balance of the Capital
account.
5. On the form toolbar, click Save to save your changes.

Step 3: Specifying Translation Gain and Loss Accounts for the Base Currency
To specify the translation gain and loss accounts for USD, which is the base currency, do the following:
1. Open the Currencies (CM202000) form.
2. In the Currency ID box, select USD.
3. On the GL Accounts tab, specify the following settings:
• Translation Gain Account: 27001 (Translation Gain/Loss)
• Translation Loss Account: 27001 (Translation Gain/Loss)
4. On the form toolbar, click Save to save your changes.

Step 4: Specifying Translation Gain and Loss Accounts for a Foreign Currency
To specify the translation gain and loss accounts for the EUR currency (which you configured in Multicurrency
Functionality: Implementation Activity), do the following:

1. While you are still on the Currencies (CM202000) form, in the Currency ID box, select EUR.
2. On the GL Accounts tab, specify the following settings:
• Translation Gain Account: 27001 (Translation Gain/Loss)
• Translation Loss Account: 27001 (Translation Gain/Loss)
3. On the form toolbar, click Save to save your changes.

Step 5: Specifying Currency Rates

To specify the currency rates for the translation definition, do the following:
1. Open the Currency Rates (CM301000) form.
2. In the To Currency box, select EUR.
 Implementing Currency Management | 215

To be able to perform the translation, you need to define the currency rates from the base currency (USD) to
the reporting currency (EUR) that will be effective on the date of translation.

Even if you had the EUR-to-USD rates of the needed rate types effective on the date of
translation, the system would not use the reciprocal EUR-to-USD rate for performing
translations from USD to EUR. You always have to define the currency rates from the base
currency to reporting currency; otherwise, the translation will not be performed.

3. In the Effective Date box, select 12/31/2022.

4. On the Currency Rate Entry tab, click Add Row on the table toolbar, and in the added row, specify the
following settings:
• From Currency: USD
• Currency Rate Type: SPOT
• Currency Effective Date: 12/31/2022
• Currency Rate: 0.8820
• Mult./Div.: Multiply
This rate is the SPOT rate on the date of translation for 12-2022.
5. Click Add Row, and specify the following settings for the added row:
• From Currency: USD
• Currency Rate Type: AVG
• Currency Effective Date: 12/31/2022
• Currency Rate: 0.9000
• Mult./Div.: Multiply
This rate is the monthly average rate calculated for the 12-2022 financial period.
6. Click Add Row, and specify the following settings for the added row:
• From Currency: USD
• Currency Rate Type: HIST
• Currency Effective Date: 12/5/2022
• Currency Rate: 0.9025
• Mult./Div.: Multiply
This rate is the historical rate on the date when SweetLife became a subsidiary of the European company.
7. On the form toolbar, click Save to save your changes.
8. On the Effective Currency Rates tab, review the rates. The created rates will be used for the translation of
account balances in 12-2022.
9. In the Effective Date box, specify 1/31/2023.
10.On the Currency Rate Entry tab, click Add Row, and in the added row, specify the following settings:
• From Currency: USD
• Currency Rate Type: SPOT
• Currency Effective Date: 1/31/2023
• Currency Rate: 0.9077
• Mult./Div.: Multiply
This rate is the SPOT rate on the date of translation for 01-2023.
11.Click Add Row, and specify the following settings for the added row:
• From Currency: USD
• Currency Rate Type: AVG
 Implementing Currency Management | 216

• Currency Effective Date: 1/31/2023

• Currency Rate: 0.9011
• Mult./Div.: Multiply
This rate is the monthly average rate calculated for the 01-2023 financial period.
12.On the form toolbar, click Save to save your changes.
13.On the Effective Currency Rates tab, review the rates. The created rates will be used for the translation of
account balances in 01-2023.

Step 6: Creating a Reporting Ledger

To create a reporting ledger to keep the results of translations, do the following:
1. Open the Ledgers (GL201500) form.
2. On the form toolbar, click Add New Record, and in the Summary area, specify the following settings:
• Ledger ID: EUROTRANS
• Description: Reporting ledger for translations to EUR
• Type: Reporting
• Currency: EUR
This is the currency to be used in the ledger. You are specifying EUR because you are going to use this
ledger for keeping the result of translating account balances to EUR.
3. On the Companies tab, click Add Row on the table toolbar, and select SWEETLIFE in the Company column.
4. On the form toolbar, click Save to save your changes.

The created reporting ledger will be used for holding the results of the translations. Now you need to configure the
translation definition, which is the set of rules used for the translation.

Step 7: Configuring the Translation Definition

To configure the translation definition, do the following:
1. Open the Translation Definition (CM203000) form.
2. In the Summary area, specify the following settings:
• Translation ID: EUR
• Source Ledger ID: ACTUAL
The system copies the data to be translated from this ledger.
• Destination Ledger ID: EUROTRANS
The results of the translation will be stored in this ledger.
• Branch: HEADOFFICE - SweetLife Head Office and Wholesale Center (inserted automatically)
• Description: Translation to EUR
• Active: Selected
3. On the table toolbar, click Add Row, and in the added row, specify the following settings:
• Account From: 10100
• Account To: 27001
• Translation Method: YTD Balance
• Rate Type: SPOT
The system will use the SPOT rate and the year-to-date (YTD) method (that is, YTD Balance) for translating
assets and liabilities. When this method is selected, to get the translated balance of each of the specified
 Implementing Currency Management | 217

accounts (assets and liabilities), the system converts the account balances at the end of the translation
period by using the exchange rate of the selected type that is effective on the translation date.
4. Click Add Row, and specify the following settings for the added row:
• Account From: 30000
• Account To: 30100
• Translation Method: YTD Balance
• Rate Type: HIST
The system will use the historical rate and the year-to-date method (that is, YTD Balance) for translating the
Capital account.
5. Click Add Row, and specify the following settings for the added row:
• Account From: 32000
• Account To: 32000
• Translation Method: PTD Balance
• Rate Type: AVG
The system will use the monthly average rate and the period-to-date (PTD) method (that is, PTD Balance)
for translating the Retained Earnings account. When this method is selected, to get the translated period-
to-date balance of each of the specified accounts (generally income and expenses), the system converts the
PTD balance for the translation period by using the exchange rate of the selected type that is effective on the
translation date. As a result, the account balance in the reporting ledger is the total of the translated PTD
balances for every period of the financial year.
6. Click Add Row, and specify the following settings for the added row:
• Account From: 40000
• Account To: 90000
• Translation Method: PTD Balance
• Rate Type: AVG
The system will use the monthly average rate and the period-to-date method (that is, PTD Balance) for
translating income and expense accounts.

The YTD Net Income account is not included in the translation definition, because its balance
is calculated based on the translated balances of income and expense accounts.

7. On the form toolbar, click Save to save the translation definition.

Configuring Cash Accounts in Foreign Currencies

The topics of this chapter describe how to configure a cash account denominated in a foreign currency and create a
GL transaction by using this account.

Multicurrency Cash Accounts: General Information

Account balances in Acumatica ERP are always maintained in the base currency. When you post a transaction in a
foreign currency to an account, the account balance is debited or credited in the appropriate amount in the base
currency, based on the actual exchange rate.
 Implementing Currency Management | 218

Learning Objectives
In this chapter, you will learn how to do the following:
• Create a GL account to which a cash account in a foreign currency will be linked
• Specify the cash account as the default cash account for a customer and a vendor
• Create a GL transaction in a foreign currency

Applicable Scenarios
You configure a cash account in a foreign currency in the following cases:
• You have opened a bank account in a foreign currency for settlements with foreign vendors.
• Some of your vendors have asked you to make payments to them in a particular foreign currency, and you
do not want to use your bank account in the base currency for that purpose to avoid paying exchange rate
commissions to the bank.

Management of Denominated Accounts

To be able to maintain an account balance in two currencies, you need to denominate the account—that is, assign
a particular currency (base or foreign) to this account. Once the account is denominated, you can post to it only in
the assigned currency, which is called the currency of denomination. The balance of the denominated account is
maintained in two currencies: the base currency and the currency of denomination.
The foreign currency balance represents the actual holdings of the company, whereas the base currency balance
is just its equivalent value to be used for reporting. You can review the account balance in both currencies.
Transactions posted to the denominated account update both balances of the account. Each transaction is posted
with a particular exchange rate, which is the actual rate on the date of the transaction.
You must denominate the GL accounts to which cash accounts are linked; you can also denominate certain
asset and liability accounts. In addition to cash accounts, you also need to denominate accounts that should be
updated by transactions in one currency only and accounts whose balances you need to know in the currency of
denomination.
Unlike ordinary accounts, denominated accounts have the following restrictions:
• You can enter and post to denominated accounts only journal entries in the currency of denomination.
• Denominated accounts cannot be used as direct or contra source accounts or destination accounts for
allocations.
• You cannot define an account as denominated if it has at least one journal entry in a currency other than the
currency of denomination.
• Due to currency rate fluctuations, you may need to revalue the balances of denominated accounts at the
end of a financial period.
Because of these restrictions, you should denominate only accounts that absolutely must be denominated.

Entry of Foreign Currency Transactions

By default, the base currency of the company is used for GL transactions created on the Journal Transactions
(GL301000) form. To record a GL transaction in a foreign currency, you select the needed currency in the Currency
box. All the transactions in one batch use the same currency.
 Implementing Currency Management | 219

If at least one of the accounts used in a batch is denominated to a specific currency, only this currency
can be used as the currency of the batch. For details about denominated accounts, see Denominated
Accounts.

Aer you have specified the currency of the batch, you can review the exchange rate that is used for the batch
in the Exchange Rate box (right of the Currency box) in the Summary area of the Journal Transactions form. This
exchange rate is the effective exchange rate for the rate type that is defined in the GL Rate Type box on the
Currency Management Preferences (CM101000) form. For details about currency rates, see Configuration of Rate
Types and Rates: General Information.

You can manually change the default rate type for a particular batch by clicking the Exchange Rate box. In the Rate
Selection dialog box, which opens, you can select the rate type. For the selected rate type, the effective date and
exchange rate to the base currency are shown. You can also change the date and rate for the batch if necessary.
If you manually change the rate, the rate you specify is stored only with the batch but not on the Currency Rates
(CM301000) form.
To review the batch amounts in the base currency, you can click View Base right of the Exchange Rate box. To view
the batch amounts in the foreign currency again, you click View Cury.

Rounding Gains and Losses

When you enter your journal transactions with debit and credit amounts in the foreign currency, the system
automatically converts the amounts into the base currency based on the specified exchange rate. The base
currency generally has fewer decimal places than the exchange rate, which has six decimal places. Thus, the
debit and credit amounts calculated in the base currency may differ by a very small amount, causing the batch
to not be balanced. In this case, the difference is recorded to one of the accounts (or subaccounts if they are used
in your system) specified for each currency—the Rounding Gain account or Rounding Loss account—and the
corresponding journal entry is automatically added to the batch.
You specify the accounts and subaccounts that are used for recording rounding gains and losses of the base
currency in the Rounding Settings section on the Currencies (CM202000) form.
In the Summary area of the form, you can also set up the rounding limit to prevent the release of the documents
with an unacceptable rounding difference (that is, the difference between the rounded amount and the original
document amount).

Multicurrency Cash Account: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for configuring
a cash account in a foreign currency, and to understand (and change, if needed) the settings that affect the
processing workflow.

Implementation Checklist
We recommend that before you initially configure a cash account, you make sure the needed features have been
enabled, settings have been specified, and entities have been created, as summarized in the following checklist.

Form Criteria to Check

Enable/Disable Features (CS100000) Make sure that the Multicurrency Accounting feature has been en-
abled.

General Ledger Preferences (GL102000) Make sure that the rounding gain and loss accounts have been speci-
fied.
 Implementing Currency Management | 220

Form Criteria to Check

Currency Management Preferences Make sure that the realized gain and loss accounts have been speci-
(CM101000) fied.

Currencies (CM202000) Make sure that the foreign currency in which you want to denominate
the new cash account has been activated for use in accounting.

Currency Rates (CM301000) Make sure that a currency rate for the needed currency has been de-
fined for the financial period in which you want to create documents.

For details on configuring the functionality, see Multicurrency Functionality: Implementation Activity. For details on
configuring currency rates, see Configuration of Rate Types and Rates: To Configure Rates and Configuration of Rate
Types and Rates: To Set Up Refreshing of Rates.

Other Settings That Affect the Workflow

You can affect the workflow of configuring foreign currency cash accounts by specifying additional settings as
follows:
• To cause a separate GL batch to be generated for each released document, clear the Generate
Consolidated Batches check box on the General Ledger Preferences (GL102000) form.
If you select this check box, on release of multiple documents, the system will group documents by branch,
posting period, and currency, and will generate the batches on a per-group basis rather than on a per-
document basis. Because multiple documents combined into one batch may have different currency rates,
in the batch, the system always shows the rate that was effective on the Transaction Date of the batch. In
a batch that combines transactions from multiple documents, the single displayed rate may differ from the
actual document rates.
• To cause all saved batches to be saved with the Balanced status, clear the Hold Batches on Entry check box
on the General Ledger Preferences form. If the check box is selected, a batch is saved with the On Hold status
by default. If the batch is on hold, you should click Remove Hold on the toolbar of the Journal Transactions
(GL301000) form for the batch so you can process it further.

Validation of Configuration
To make sure that all configuration has been performed correctly, we recommend that in your system, you create a
GL transaction with a cash account denominated in a foreign currency by performing instructions similar to those
described in Multicurrency Cash Accounts: To Process a GL Transaction.

Multicurrency Cash Accounts: To Configure an Account

In this implementation activity, you will learn how to create a denominated cash account.

Story
Suppose that the SweetLife Fruits & Jams company has opened a bank account in Canadian dollars (the CAD
currency defined in the system), because it has customers and a few big vendors in Canada and wants to use
Canadian dollars for payments to these partners.
Acting as a SweetLife accountant, you need to configure the following accounts:
• A GL account denominated in CAD to which the cash account will be linked
 Implementing Currency Management | 221

• The cash account denominated in CAD and an entry type for processing bank charges

Configuration Overview
For the purposes of this activity, the following features have been enabled on the Enable/Disable Features
(CS100000) form:
• Standard Financials, which provides the standard financial functionality
• Multibranch Support, which supports multiple branches in your instance of Acumatica ERP
• Multicompany Support, which supports multiple companies within one tenant
• Multicurrency Accounting, which enables multicurrency operations in the system
On the Account Classes (GL202000) form, the CASHASSET account class has been predefined.
On the Entry Types (CA203000) form, the BANKFEE entry type has been configured.
On the Payment Methods (CA204000) form, the WIRE payment method for wire transfers has been predefined.

Process Overview
On the Chart of Accounts (GL202500) form, you will manually create a GL account denominated in CAD. On the Cash
Accounts (CA202000) form, you will create a cash account linked to the new GL account and add the BANKFEE entry
type for this cash account.

System Preparation
To prepare the system for the creation of GL and cash accounts, do the following:
1. Launch the Acumatica ERP 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

You must perform the previous activities of this guide before you perform this activity, and
sign in to the company where the prerequisite activities have been performed.

2. On the Company and Branch Selection menu, also on the top pane of the Acumatica ERP 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: Creating a GL Account

To create a GL account, do the following:
1. Open the Chart of Accounts (GL202500) form.
2. On the form toolbar, click Add Row, and specify the following settings in the added row:
• Account: 10215
• Account Class: CASHASSET
• Description: Checking Account CAD
• Post Option: Detail
• Currency: CAD
• Revaluation Rate Type: SPOT
 Implementing Currency Management | 222

This denominated checking account will be used for performing operations in Canadian dollars; thus, CAD
is the currency of denomination specified for the account. The specified revaluation rate type will later be
used for the account revaluation.

If an account had at least one journal entry posted in a currency other than the currency of
denomination, you would not be able to make this account denominated.

3. On the form toolbar, click Save to save your changes.

Step 2: Creating a Cash Account

To create a cash account denominated in CAD, do the following:
1. Open the Cash Accounts (CA202000) form.
2. On the form toolbar, click Add New Record and specify the following settings in the Summary area:
• Cash Account: 10215WH
• Account: 10215 (Checking Account CAD)
• Currency: CAD (selected automatically)
• Curr. Rate Type: SPOT
This is the currency rate type to be used by default in the transactions posted to the cash account. If
this box is empty, the system will use the currency rate type specified in the CA Rate Type box on the
Currency Management Preferences (CM101000) form.
The system uses the currency of the denominated account to which the cash account is linked as the
currency of the created cash account, so CAD is automatically specified in the Currency box. You cannot
change the currency for the created cash account.
3. On the Payment Methods tab, click Add Row on the table toolbar, and specify the following settings for the
added row:
• Payment Method: WIRE
• Use in AP: Selected
• Use in AR: Selected
4. On the Entry Types tab, click Add Row on the table toolbar and in the Entry Type ID column, select
BANKFEE.
5. On the form toolbar, click Save to save your changes.

Multicurrency Cash Accounts: To Process a GL Transaction

The following activity will walk you through the processing of a GL transaction in a foreign currency.

Story
Suppose that SweetLife Fruits & Jams has just opened a bank account in Canadian dollars and needs to pay a
monthly fee of C$9.00 to the bank. Acting as a SweetLife accountant, you need to create a GL transaction with the
bank fee, post the transaction, and review the account balance.

Configuration Overview
For the purposes of this activity, the following features have been enabled on the Enable/Disable Features
(CS100000) form:
 Implementing Currency Management | 223

• Standard Financials, which provides the standard financial functionality

• Multibranch Support, which supports multiple branches in your instance of Acumatica ERP
• Multicompany Support, which supports multiple companies within one tenant
• Multicurrency Accounting, which enables multicurrency operations in the system
On the Cash Accounts (CA202000) form, the 10215WH cash account denominated in the CAD currency and
associated with the 10215 (Checking Account CAD) GL account has been defined, as described in Multicurrency Cash
Accounts: To Configure an Account.

On the Ledgers (GL201500) form, the ACTUAL ledger with the Actual type has been predefined.
On the Chart of Accounts (GL202500) form, the 61100 (Bank Service Charges) account has been created.
On the Currency Rate Types (CM201000) form, the SPOT rate type has been predefined.

Process Overview
You will create and post a GL transaction in CAD on the Journal Transactions (GL301000) form. On the Account
Summary (GL401000) form, you will review the account balances for the 01-2023 period and then view the details of
the 10215 (Checking Account CAD) account on the Account Details (GL404000) form to review the ending balance of
the account.

System Preparation
To prepare the system, do the following:
1. Launch the Acumatica ERP 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

You must perform the previous activities of this guide before you perform this activity, and
sign in to the company where the prerequisite activities have been performed.

2. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a different date is displayed, click the Business Date menu
button, and select 1/30/2023 from the calendar. For simplicity, in this activity, you will create and process all
documents in the system during this business date.
3. On the Company and Branch Selection menu, also on the top pane of the Acumatica ERP 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.
4. As a prerequisite activity, make sure that the multicurrency accounting functionality has been configured as
described in Multicurrency Functionality: Implementation Activity and Configuration of Rate Types and Rates: To
Configure Rates.
5. As a prerequisite activity, make sure that you have configured an account as described in Multicurrency Cash
Accounts: To Configure an Account.

Step 1: Creating a GL Transaction

To create a GL transaction in CAD, do the following:
1. Open the Journal Transactions (GL301000) form.
2. On the form toolbar, click Add New Record and specify the following settings in the Summary area:
 Implementing Currency Management | 224

• Transaction Date: 1/30/2023 (inserted automatically)

• Post Period: 01-2023 (inserted automatically based on the date)
• Currency: CAD
You are overriding the currency to CAD to create the transaction in Canadian dollars; otherwise,
the system creates the transaction in the base currency (USD), which is used by default in journal
transactions posted to the ACTUAL ledger.
• Description: Bank fee (January 2023)
Notice that the Exchange Rate box (located to the right of the Currency box) displays the currency exchange
rate that will be used in the created transaction.
3. On the table toolbar, click Add Row, and specify the following settings for the added row:
• Account: 61100 (Bank Service Charges)
• Debit Amount: 9.00
4. Add another row, and specify the following settings:
• Account: 10215 (Checking Account CAD)
This is the account that you created on the Chart of Accounts (GL202500) form (and then associated with
the 10215WH cash account) in Multicurrency Cash Accounts: To Configure an Account.
• Credit Amount: 9.00
5. In the Summary area, click the Exchange Rate box (located to the right of the Currency box) and review the
Rate Selection dialog box, which opens.
This dialog box shows the settings of the currency rate that is used in this transaction. The currency rate
type (SPOT) is defined by the GL Rate Type setting on the Currency Management Preferences (CM101000)
form. The Effective Date is the date on which the currency rate becomes effective.

If needed, in the Rate Selection dialog box, you can override the currency rate for a particular
transaction.

6. Click OK to close the dialog box.

7. Click the View Base button, and review the transaction amounts in the base currency.
The system recalculates the transaction amounts to USD as follows by using the exchange rate that is
effective on the transaction date: C$9.00 * 0.7827176.

You cannot change the amounts in the base currency directly. Instead, you need to switch to
the transaction currency and edit the amounts in the transaction currency; the amounts in the
base currency will be recalculated accordingly.

8. On the form toolbar, click Remove Hold; the batch is assigned the Balanced status.
9. On the form toolbar, click Release to release the GL transaction.

Step 2: Reviewing the Account Balance

To review the balance of the 10215 cash account, do the following:
1. Open the Account Summary (GL401000) form.
2. In the Summary area, specify the following settings:
• Period: 01-2023
• Show Currency Details: Selected
3. Review the account balances.
 Implementing Currency Management | 225

The Ending Balance column shows the ending balance of each account at the end of the selected period in
the base currency. The Curr. Ending Balance column shows the ending balance of the account at the end of
the selected period in the currency of denomination, which is shown in the Currency ID column. Similarly,
the Beg. Balance, Debit Total, and Credit Total columns show the amounts in the base currency, while the
Curr. Beg. Balance, Curr. Debit Total, and Curr. Credit Total columns are in the account currency.
4. In the table, click the row with the 10215 (Checking Account CAD) account, and on the form toolbar, click
Account Details.
5. On the Account Details (GL404000) form, which the system has opened, review the account details.
The table shows the list of transactions processed in the selected period (currently there is only one journal
entry). The entry amounts are shown in the base and foreign currency, because the Show Currency Details
check box is selected in the Selection area of the form. The Ending Balance box in the Summary area shows
the account balance at the end of the period in the base currency. The Curr. Ending Balance column shows
the ending balance in the foreign currency.

Multicurrency Cash Accounts: Related Report and Inquiry Forms

In the following sections, you can find details about the report and inquiry forms you may want to review to gather
information about GL transactions in a foreign currency.

If you do not see a particular report or form that is described, you may have signed in to the system
with a user account that does not have access rights to the report or form. Contact your system
administrator to obtain access to any needed reports or forms.

Reviewing Transactions in a Foreign Currency in a Report

You can review transactions in a foreign currency for a particular period if you run the Transactions for Period
(GL633000) report with the Include Foreign Currency Details check box selected on the report form.

Reviewing Transactions in a Foreign Currency on Inquiry Forms

To review transactions in a foreign currency, you can use the Account Summary (GL401000) and Account Details
(GL404000) forms with the Show Currency Details check box selected on both inquiry forms.
 Implementing Taxes | 226

Implementing Taxes
This chapter describes how to configure tax management in Acumatica ERP.

Sales Taxes

The topics of this chapter describe how to configure sales taxes in Acumatica ERP to be used in AR and AP
documents.

Sales Taxes: General Information

A tax in Acumatica ERP is an entity that defines the tax rate, calculation method, and effective date, as well as the
GL accounts to which the tax amounts are accumulated.
A sales tax is a tax collected by a company from customers as a part of the invoice amount; then the company pays
the accumulated tax amounts to the responsible tax agency. (The company does not claim the sales tax it pays to
vendors.) In Acumatica ERP, the system calculates the sales tax in customer and vendor documents.

Learning Objectives
From reading the topics in this chapter and completing the implementation activities, you will learn how to
configure sales taxes to be used in AR and AP documents.

Applicable Scenarios
You configure sales taxes in the following cases:
• You want to process AR documents with sales taxes
• You want to process AP documents with sales taxes

Configuration of Taxes
The entities that you have configured in the taxes subledger should be linked with the following entities, which you
create in other Acumatica ERP subledgers:
• Stock items and non-stock items: To calculate tax amounts in the documents in which you specify inventory
IDs, you should create stock items (for goods) and non-stock items (for services) and associate each item
with the appropriate tax category. The tax category defines the taxes that can be applied to this stock or
non-stock item.
• Vendor and customer accounts: You should create needed vendors in accounts payable and customers
in accounts receivable if they do not already exist. Depending on the geographical location of the sale or
purchase transaction, different taxes can be applied to the document. To define which taxes are applied in
the location of your vendor or customer, you should assign the appropriate tax zone to each new or existing
vendor and customer.
Once these entities are configured, the system will calculate tax amounts when a user enters a document in the
system. The system does this by applying the particular tax or taxes determined by the system according to the
location of the selected customer or vendor and the type of stock or non-stock item specified in the document.
 Implementing Taxes | 227

Defining the Minimum and Maximum Taxable Amounts

For each row of the table on the Tax Schedule tab of the Taxes (TX205000) form, you can define the minimum and
maximum taxable amount for each tax in the corresponding columns.
• If a minimum amount is specified in the Min. Taxable Amount column, the tax rate of 0 will be applied to
amounts less than the specified minimum.
• If a maximum amount is specified in the Max. Taxable Amount column, the taxable amount will be capped
to the maximum specified. For example, a tax has the following settings:
• Tax Rate: 5.00
• Max. Taxable Amount: 100.00
If a user creates a document with the amount of $200, the tax amount applied to this document will be $5.
In all other cases, the tax is calculated based on the original taxable amount.

Update of the Tax Rate

If the rate of a particular tax is going to be changed in the future, on the Taxes (TX205000) form, you can specify the
new tax rate and the date on which it will become effective. To do that, you add a new row to the table on the Tax
Schedule tab and specify its settings.

Sales Taxes: Additional Settings for Sales Taxes

This topic lists the settings that can be applied when creating sales taxes.

First-Level and Second-Level Taxes

Sometimes multiple taxes should be applied to one document. First-level taxes are those taxes that should be
applied to the net amount of the document (the net price of the included goods or services). Second-level taxes are
those taxes that should be applied to the sum of the document’s taxable amount and the first-level tax amount. A
second-level tax is sometimes called tax-on-tax calculation.

Defining How Cash Discounts Are Applied

In the Cash Discount box on the Taxes form, you can specify the method of calculating the taxable amount if a cash
discount is applied to the document. You can select one of the following options:

A cash discount can be applied to a document only within the cash discount period. The end date
of the cash discount period is specified in the Cash Discount Date box in the invoice (or the similar
document). This date is defined by the system according to the specified credit terms. For details, see
Setup of Credit Terms.

• Reduces Taxable Amount: The system deducts the discount amount from the document amount before
tax calculation. Thus, the tax amount is calculated based on the discounted taxable amount. For example,
assume that the price of the one purchased item is $100, the tax rate is 10%, and the cash discount is 20%.
In this case, the taxable amount is decreased by the discount amount and is equal to $100 (price) - $20
(discount) = $80. Thus, the tax amount is $8. The document amount is equal to the product price plus the
discounted tax amount: $100 (price) + $8 (tax amount) = $108.
• Does Not Affect Taxable Amount (selected by default): The discount amount doesn’t affect the taxable
amount. That is, the base for tax calculation is the same as the base for discount calculation. As in the
previous example, consider a price of $100, a discount of 20%, and a tax of 10%. Because the taxable
 Implementing Taxes | 228

amount is not affected by the discount, it is $100. The tax amount is $10. Thus, the document amount is
$110.
• Reduces Taxable Amount on Early Payment (this option is available for the taxes of the VAT type only). The
system recalculates the taxable amount in the document if the full payment has been received within the
cash discount period. The documents that have been fully paid within the cash discount period are listed
on the Generate VAT Credit Memos (AR504500) form. On this form, you can generate credit memos that
will be automatically applied to the corresponding documents upon release. For details, see VAT for Early
Payments: To Process a Payment with a Cash Discount.

Defining the Reporting Group

If you plan to use the built-in tax reporting functionality in Acumatica ERP, you should select the reporting group
that you have created for the tax agency specified in the Tax Agency ID box on the Taxes form. For details, see Tax
Report.

If you do not plan to use the built-in tax reporting functionality, specify one of the predefined reporting groups
(input or output) in the Reporting Group column on the Tax Schedule tab of this form. For the details on which
reporting group to select, see Tax Report Configuration: General Information.

Sales Taxes: Configuration Prerequisites

Before starting the configuration of a sales tax, you must be sure that the system has been configured properly and
that all required entities have been created, as described in the following sections.

Configuring the System

Before you configure a sales tax, you need to make sure that the following configuration tasks have been
performed in the system:
• On the Chart of Accounts (GL202500) form, all GL accounts that you will use for tax reporting purposes have
been added. The following table lists the accounts that should be configured in the U100 dataset.

Account Account Class Type Description Control Account

Module

24100 OTHCURLIAB Liability Tax Payable TX

17000 OTHERCURAS Asset Tax Claimable TX

65100 EXTAX Expense Other Tax Ex-  

penses

The liability account will be used for accumulating the tax amounts to be paid to the tax agency in a tax
period. The expense account will be used to record tax adjustments and expenses for the tax agency.
• On the Vendors (AP303000) form, a vendor set up as a tax agency has been configured. For details, see Tax
Agency: To Set Up a Tax Agency for Sales Taxes.
• On the Tax Categories (TX205500) form, the TAXABLE category has been created.
• On the Tax Zones (TX206000) form, the DENVER tax zone has been created.
• For a sales tax to be used in AR, a reporting group of the Output type has been configured on the Reporting
Settings (TX205100) form.
 Implementing Taxes | 229

• For a sales tax to be used in AP, a reporting group of the Input type has been configured on the Reporting
Settings form.

Sales Taxes: To Create a Sales Tax for Use in AR

By performing this implementation activity, you will learn how to configure a sales tax that will be used in AR
documents and sales orders.

Story
The Muffins & Cakes company, which operates in Denver, Colorado, provides services subject to a 8.31% sales tax.
You need to configure the sales tax, assign it to the TAXABLE category and the DENVER tax zone, and specify the tax
calculation method for this tax.
You also need to define a 0% sales tax, because you have to report exempt sales in your tax report. This tax
indicates that a sale should be reported as tax exempt.

Process Overview
In this activity, on the Taxes (TX205000) form, you will create a sales tax and specify its tax rate, tax category and tax
zone. On the same form, you will also create a sales tax of 0% to represent exempt sales in the tax report. On the
Tax Zones (TX206000) form, you will then review the list of taxes assigned to the tax zone, and on the Tax Categories
(TX205500) form, you will review the taxes assigned to each tax category.

Before configuring a sales tax in the production environment, you should know exactly which
calculation method should be applied in the Calculation Rule box (Tax Settings tab) of the Taxes
(TX205000) form.

System Preparation
Before you begin to work with sales taxes, do the following:
1. As a prerequisite activity, configure the DENVER tax zone as described in Tax Zones and Categories: To
Review Tax Categories and Create a Tax Zone for Sales Taxes.
2. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded.
3. To sign in as a system administrator, use the following credentials:
• Username: gibbs
• Password: 123

Step 1: Creating a Sales Tax

To create a sales tax, proceed as follows:
1. Open the Taxes (TX205000) form.
2. On the form toolbar, click Add New Record, and specify the following settings in the Summary area:
• Tax ID: DENTAX
• Description: Denver Sales Tax
• Tax Type: Sales
• Calculation Rule: Exclusive Document-Level
 Implementing Taxes | 230

This setting means that the tax amount is calculated on the sum of the line amounts to which this tax is
applied.
• Cash Discount: Does Not Affect Taxable Amount
• Tax Agency: COTAXDEP
3. On the Tax Schedule tab, click Add Row on the table toolbar, and specify the following settings:
• Start Date: 1/1/1900 (inserted by default)
• Tax Rate: 8.31
• Reporting Group: Taxable
4. On the Categories tab, click Add Row on the table toolbar, and select TAXABLE in the Tax Category column.
5. On the Zones tab, click Add Row on the table toolbar, and select DENVER in the Tax Zone ID column.
The created tax will be applied to all taxable items sold to customers assigned to the DENVER tax zone.
6. On the GL Accounts tab, review the GL accounts assigned to this sales tax.
The Tax Payable account is the liability account that accumulates the tax amounts to be paid to the tax
agency. The account is credited in the tax amount when taxable invoices are released.
7. On the form toolbar, click Save to save your changes.

Step 2: Creating a 0% Sales Tax

To create a 0% (exempt) sales tax, proceed as follows:
1. While you are still on the Taxes (TX205000) form, click Add New Record on the form toolbar, and specify the
following settings in the Summary area:
• Tax ID: DENEXEMPT
• Description: Denver Exempt
• Tax Type: Sales
• Calculation Rule: Exclusive Document-Level
• Cash Discount: Does Not Affect Taxable Amount
• Tax Agency: COTAXDEP
2. On the Tax Schedule tab, click Add Row on the table toolbar, and specify the following settings:
• Start Date: 1/1/1900 (inserted by default)
• Tax Rate: 0 (inserted by default)
• Reporting Group: Exempt
3. On the Categories tab, click Add Row on the table toolbar, and select EXEMPT in the Tax Category column.
4. On the Zones tab, click Add Row on the table toolbar, and select DENVER in the Tax Zone ID column.
5. On the form toolbar, click Save to save your changes.

Step 3: Reviewing the List of Taxes

To review the list of taxes now available for the Denver tax zone, proceed as follows:
1. Open the Tax Zones (TX206000) form.
2. In the Tax Zone ID box, select DENVER; review the list of taxes that currently belong to this zone. Notice that
the list includes both DENTAX and DENEXEMPT.
3. Open the Tax Categories (TX205500) form.
4. In the Tax Category ID box, select TAXABLE, and review the taxes in the table. The TAXABLE category now
includes the DENTAX tax.
 Implementing Taxes | 231

5. In the Tax Category ID box, select EXEMPT, and review the taxes in the table. The EXEMPT category now
includes the DENEXEMPT tax.

Sales Taxes: To Configure a Sales Tax for Use in AP

By performing this implementation activity, you will learn how to configure a sales tax that will be used in AP
documents and purchase orders.

Story
The Muffins & Cakes company buys goods from its suppliers and pays the sales tax on these purchases (input tax).
The rate of the sales tax is 8.31%. You need to configure a sales tax of the Input type in the system, which will be
applied to AP documents.

Process Overview
In this activity, on the Taxes (TX205000) form, you will open a sales tax; on the Tax Schedule tab, you will add a line
for the Input type of reporting group.

Before configuring a sales tax in the production environment, you should know exactly which
calculation method should be applied in the Calculation Rule box (Tax Settings tab) of the Taxes
(TX205000).

System Preparation
Before you begin to work with sales taxes, do the following:
1. As a prerequisite activity, configure the DENTAX tax as described in Sales Taxes: To Create a Sales Tax for
Use in AR.
2. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded.
3. To sign in as an administrator, use the following credentials:
• Username: gibbs
• Password: 123

Step: Updating the Tax Schedule for the Sales Tax

To add a line to the tax schedule of the sales tax, proceed as follows:
1. Open the Taxes (TX205000) form.
2. In the Tax ID box, select DENTAX.
3. On the Tax Schedule tab, click Add Row on the table toolbar, and specify the following settings:
• Start Date: 1/1/1900 (inserted by default)
• Tax Rate: 8.31
• Reporting Group: Input
4. On the form toolbar, click Save to save your changes.
The created tax will be applied to all taxable items purchased from vendors assigned to the DENVER tax
zone.
 Implementing Taxes | 232

Tax Agency

The topics of this chapter describe how to create a tax agency in Acumatica ERP for automatic payment of taxes.

Tax Agency: General Information

If your company buys or sells goods or services, it must report the appropriate taxes to the responsible tax agencies
by filing tax reports regularly. The tax authorities or agencies can exist at multiple levels. For example, in most
European countries, the tax rates are defined at the federal level and are the same in all territories, and in other
countries, there can be many zones with different taxes; this depends on the taxation system of the country. Thus,
the tax agencies can have different reporting periods and different tax rates. You may need to report taxes to
different tax agencies. For each tax agency, you need to create a separate tax agency account in Acumatica ERP and
configure the applicable tax report.
Some taxes (such as custom duties on imported goods) you pay directly to the tax agencies or to the vendors
authorized to collect the taxes when you receive an invoice for the taxes from a tax agency or a vendor. The taxes
can be included into a tax report to be claimed from the tax authorities.
The following sections of this topic describe how you establish the general settings for a tax agency and how you
set up a tax agency.

Learning Objectives
From reading the topics in this chapter and completing the implementation activity, you will learn how to create a
tax agency that you will use for tax reporting purposes.

Applicable Scenarios
You can configure a tax agency account in Acumatica ERP to cover either of the following purposes:
• You want to set up tax reporting for the tax agency. For such an agency, you configure an appropriate tax
report and set up automatic accumulation of tax amounts in the tax report.
• You want to pay taxes directly to the tax agency. (For certain taxes, such as the customs duties on imported
goods, instead of filing tax reports, you must pay the taxes directly to the tax agency.) In this case, you need
to create the tax bills by using the Tax Bills and Adjustments (TX303000) form, and then pay the billable
amounts to the vendor (which is a tax agency).

Definition of a Tax Agency Account

In Acumatica ERP, you define a tax agency as a vendor (because you make payments to it) by using the Vendors
(AP303000) form. On this form, you indicate that the vendor is a tax agency by selecting the Vendor Is Tax Agency
check box, which causes the Tax Agency tab to appear on the form. On this tab, you should specify the specific
settings for the tax agency.
For details, see Tax Agency: To Set Up a Tax Agency for Sales Taxes and Tax Agency: To Set Up a Tax Agency for VAT.

Preparation of a Tax Agency for Tax Reporting

For each tax agency to which you will report taxes, you specify the following tax report-related settings on the Tax
Agency tab of the Vendors (AP303000) form:
 Implementing Taxes | 233

• Default Tax Period Type: You can specify the reporting period (Half a Month, Month, Two Months, Quarter,
Half a Year, Year, or Financial Period). In many states of the United States, the reporting frequency depends
on the amount of tax you collect and is subject to change if this amount significantly changes in a specific
period.

You can change the period type aer all the year's reporting periods are closed.

• GL Accounts: You can specify the following GL accounts, which will be used for posting tax-related entries:
• Tax Payable Account: This account accumulates the tax amounts that should be paid to the tax agency
(for example, tax amounts resulting from sales that are subject to sales tax). The account selected in this
box should be configured as a control account for the taxes subledger. For more information on control
accounts, see Control Accounts: General Information.
• Tax Claimable Account: This account accumulates the tax amounts that should be claimed from the
tax agency (for example, tax amounts resulting from purchases that are subject to VAT). The account
selected in this box should be configured as a control account for the taxes subledger. For more
information on control accounts, see Control Accounts: General Information.
• Tax Expense Account: This account accumulates the tax-related expenses for a particular agency (for
example, tax amounts resulting from purchases that are subject to use tax).
• Tax Report Precision: You can specify the maximum number (0 through 9) of decimal places in the values
(tax amounts and taxable amounts) gathered in the tax report lines. Alternatively, you can use the decimal
precision of the reporting currency by selecting the Use Currency Precision check box (which makes the
Tax Report Precision box unavailable).
• Tax Report Rounding: You can specify the rounding rule for adjusting the values gathered in the tax report,
so they will be rounded to the number of decimal places according to the defined precision. To do this,
select one of the following options: Mathematical, Ceiling, or Floor. For details, see Rounding of Document
Amounts.
Aer you have specified and saved the settings on the Tax Agency tab of the Vendors form, you configure the tax-
reporting functionality for the tax agency by completing the following tasks:
1. On the Tax Periods (TX207000) form, you specify the date when the tax year should start for the selected tax
agency. If the tax year is already configured for the tax agency, you can change the start date of the next tax
year, so that the current tax year will be shortened.
To change the start date, you should select the required date; your current tax year will end one day before
the specified date. For example, suppose that the tax year currently configured in your system ends on
December 31, 2023 and that you specify the start date of the next tax year as August 1, 2023. Aer you save
this change, your current tax year will end on July 31, 2023, and will consist of seven periods.
2. On the Reporting Settings (TX205100) form, you configure the tax report for the particular tax agency. For
details, see Tax Report.
3. On the Tax Zones (TX206000) and Tax Categories (TX205500) forms, you configure the tax zone (or zones)
that will hold the taxes reported to the tax agency and the tax categories to which these taxes will be
assigned. For details, see Tax Zones and Categories: General Information.
4. On the Taxes (TX205000) form, you create all taxes applied by this tax agency with their effective rates and
effective dates (if you haven't already created these taxes). For each of these taxes, you select the tax agency
account in the Tax Agency ID box (on the Tax Settings tab).
5. You set up the tax calculation. For details, see Tax Calculation Methods: General Information.

Thus, the tax report configured for a specific tax agency will accumulate only the taxes defined for that tax agency.
 Implementing Taxes | 234

Tax Agency: Configuration Prerequisites

Before starting the creation of a tax agency, you must be sure that the system has been configured properly and
that all required entities have been created, as described in the following sections.

Configuring the System

Before you configure a tax agency, you need to make sure that the following configuration tasks have been
performed in the system:
• On the Chart of Accounts (GL202500) form, all GL accounts that you will use for tax reporting purposes have
been added. The following table lists the accounts that should be configured in the U100 dataset.

Account Account Class Type Description Control Account

Module

24100 OTHCURLIAB Liability Tax Payable TX

17000 OTHERCURAS Asset Tax Claimable TX

65100 EXTAX Expense Other Tax Ex-  

penses

The liability account will be used for accumulating the tax amounts to be paid to the tax agency in a tax
period. The expense account will be used to record tax adjustments and expenses for the tax agency.
• On the Enable/Disable Features (CS100000) form, the VAT Reporting feature has been enabled.
• To ease data entry when a new tax agency is created, you can create a vendor class that is designed for
tax agency accounts. When you create a new tax agency, you select this class, and the system fills in the
settings you have established for it, such as the country, the terms of payment, and the GL accounts. You
can overwrite the default values for a particular tax agency, if needed. On the Vendor Classes (AP201000)
form, you create the vendor class, which will provide default values for tax agency accounts. For details, see
Accounts Payable: To Create a Vendor Class.

Tax Agency: To Set Up a Tax Agency for Sales Taxes

By performing this implementation activity, you will learn how to create a vendor and define it as a tax agency to
which you will report taxes.

Story
Suppose that you, as an implementation manager, are configuring the tax management functionality for the
Muffins & Cakes company. The company's managers have decided that they want to automatically generate tax
bills to report taxes to the Colorado State Department of Revenue.
You need to create a new vendor and define it as a tax agency in the system.

Configuration Overview
In the U100 dataset, for the purposes of this activity, on the Vendor Classes (AP201000) form, the TAXAGENCY vendor
class has been configured.
 Implementing Taxes | 235

Process Overview
In this activity, to create a tax agency, you will create a new vendor on the Vendors (AP303000) form. On the tabs of
this form, you will specify the vendor's details, select the Vendor is Tax Agency check box, and specify the needed
settings on the Tax Agency tab.

System Preparation
Before you begin to work with a tax agency, do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded.
2. To sign in as an administrator, use the following credentials:
• Username: gibbs
• Password: 123

Step 1: Creating a Vendor Account

To create a vendor account to be used as a tax agency, proceed as follows:
1. Open the Vendors (AP303000) form.

To open the form for creating a new record, type the form ID in the Search box, and on the
Search form, point at the form title and click New right of the title.

2. On the form toolbar, click Add New Record.

3. In the Summary area, specify the following settings:
• Vendor ID: COTAXDEP
• Status: Active
• Vendor Class: TAXAGENCY
4. On the General tab, in the Account Name box, specify CO State Department of Revenue.
5. In the Vendor Properties section, select the Vendor Is Tax Agency check box.
6. On the form toolbar, click Save to save your changes.

Step 2: Configuring the Vendor as a Tax Agency

To configure the newly created vendor account to act as a tax agency, proceed as follows:
1. While you are still on the Vendors (AP303000) form, open the Tax Agency tab.
2. In the Default Tax Accounts section, specify the following settings:
• Tax Payable Account: 24100 (Tax Payable)
• Tax Expense Account: 65100 (Other Tax Expenses)
3. In the Tax Report Settings section, specify the following settings:
• Default Tax Period Type: Month
• Automatically Generate Tax Bill: Selected
• Use Currency Precision: Selected
4. On the form toolbar, click Save to save your changes.
 Implementing Taxes | 236

Tax Agency: To Set Up a Tax Agency for VAT

The following activity will walk you through the process of configuring a tax agency to which VATs will be reported.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that you, as an implementation manager, are configuring the tax management functionality for the
SweetLife Fruits & Jams company. The company's managers have decided that they want to automatically
generate tax bills to report VAT to the tax agency.
You need to create a new vendor and define it as a tax agency in the system.

Configuration Overview
In the U100 dataset, for the purposes of this activity, on the Vendor Classes (AP201000) form, the TAXAGENCY vendor
class has been configured.

Process Overview
In this activity, on the Enable/Disable Features (CS100000) form, you will enable the needed feature. To create a tax
agency, you will create a new vendor on the Vendors (AP303000) form. On the tabs of this form, you will specify the
vendor's details, select the Vendor is Tax Agency check box, and specify the needed settings on the Tax Agency
tab.

System Preparation
To prepare the system, do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. You should
sign in as an implementation consultant by using the gibbs username and the 123 password.
2. On the Company and Branch Selection menu, on the top pane of the Acumatica ERP screen, select the
SweetLife Head Office and Wholesale Center branch.

Step 1: Enabling the Needed Feature

To enable the VAT Reporting feature, do the following:
1. Open the Enable/Disable Features (CS100000) form.
2. On the form toolbar, click Modify.
3. Select the VAT Reporting check box under the Standard Financials group of features.
4. On the form toolbar, click Enable.

Step 2: Creating a Vendor Account

To create a vendor account to be used as a tax agency, proceed as follows:
 Implementing Taxes | 237

1. Open the Vendors (AP303000) form.

To open the form for creating a new record, type the form ID in the Search box, and on the
Search form, point at the form title and click New right of the title.

2. On the form toolbar, click Add New Record.

3. In the Summary area, specify the following settings:
• Vendor ID: VATTAX
• Status: Active
• Vendor Class: TAXAGENCY
4. On the General tab, in the Account Name box, specify VAT Revenue Agency.
5. In the Vendor Properties section, select the Vendor Is Tax Agency check box.
6. On the form toolbar, click Save.

Step 3: Configuring the Vendor as a Tax Agency

To configure the newly created vendor account to act as a tax agency, proceed as follows:
1. While you are still on the Vendors (AP303000) form, open the Tax Agency tab.
2. In the Default Tax Accounts section, specify the following settings:
• Tax Payable Account: 24100 (Tax Payable)
• Tax Claimable Account: 17000 (Tax Claimable)
• Tax Expense Account: 65100 (Other Tax Expenses)
3. In the Tax Report Settings section, specify the following settings:
• Default Tax Period Type: Month
• Automatically Generate Tax Bill: Selected
• Use Currency Precision: Selected
4. On the form toolbar, click Save.

Tax Periods

The topics of this chapter describe how to configure tax year and periods in Acumatica ERP.

Tax Periods: General Information

Each company within one tenant of Acumatica ERP may have a certain level of autonomy or can be a separate
legal entity. Companies may have different durations of tax periods and even different durations of tax years. Thus,
sometimes for a particular company, you may need to do one of the following:
• Set up an individual tax period duration
• Change the tax period duration for particular reasons (for example, the company income has changed, so
the tax periods have changed from a month to a quarter)
• Configure a short tax year
 Implementing Taxes | 238

In Acumatica ERP, you can configure a tax year for each company and tax agency combination individually, specify
the particular tax period type, and set up a short tax year. Each company can prepare, void, and release its own tax
reports and close the company's own tax periods separately from one another.

Learning Objectives
From reading the topics in this chapter and completing the implementation activity, you will learn how to configure
tax periods for a particular combination of company and tax agency.

Applicable Scenarios
You configure tax years and tax periods for a particular company if you want this company to have the settings of
tax periods different from those specified as the default ones for the tax agency.

Specifying the Default Tax Period Type

The default tax period type is specified for each tax agency in the Default Tax Period Type box on the Tax Agency
tab of the Vendors (AP303000) form. The system uses this tax period by default for each newly added company and
branch. You can override this setting for a particular tax agency and company by using the Tax Periods (TX207000)
form.

Setting Up Tax Periods

On the Tax Periods (TX207000) form, you can set up tax periods for the selected company and tax agency. The
duration of these tax periods may differ from the default tax period type specified for a tax agency on the Vendors
(AP303000) form.

You can change the tax period type only if all of the periods of the selected year have the Open status.

To set up tax periods for a particular company, in the Company and Tax Agency boxes in the Summary area of
the Tax Periods form, you select the required company and tax agency. In the Tax Year box, specify the tax year for
which you are going to configure the periods. Then in the Tax Period Type box, select the required type of a tax
period. Once you select a tax period type, the system displays the list of tax periods in the table on the form.

By default, a legal entity has a tax year that starts on January 1, has a duration of one calendar year,
and has the period duration specified for the tax agency on the Vendors form. If you do not need to
modify these default settings, you can proceed with tax report preparation without performing any
additional configuration on the Tax Periods form.

For details, see Tax Periods: Implementation Activity.

Viewing Tax Periods

On the Tax Periods (TX207000) form, you can select the needed company, tax agency, and tax year in the Summary
area. Once you do, the system displays the list of tax periods in the table, so that you can review tax periods and
their statuses for the current tax year and or a past tax year. In the table, you can also view the net tax amounts for
the closed tax periods.

Shortening a Tax Year

In Acumatica ERP, you can configure a short tax year—a tax year of a duration that is less than 12 months. On the
Tax Periods (TX207000) form, once you select the required combination of the company and tax agency, you select
a needed tax year in the Tax Year box, and, next to this box, you select the Short Tax Year check box. Once you do,
 Implementing Taxes | 239

the Add Period and Delete Period buttons become available on the table toolbar, so that you can delete and add
periods as needed. You save this modified tax year configuration by clicking Save on the form toolbar.

Only a tax year for which at least one period has the Open status can be shortened.

Tax Periods: Synchronization with Financial Periods

Acumatica ERP supports automatic synchronization of tax periods with financial periods. The tax periods for which
Financial Periods is selected in the Tax Period Type box on the Tax Periods (TX207000) form can be synchronized
with financial periods in the company calendar, regardless of the status of tax periods—Prepared, Open, or Closed.
When an administrative user changes the user-defined financial periods on the Master Financial Calendar
(GL201000) or on the Company Financial Calendar (GL201100) form if the Multiple Calendar Support feature is
enabled, if Financial Periods is selected in the Tax Period Type box for the company specified in the Company box
and the tax agency selected in the Tax Agency box, you should update tax periods based on the updated financial
calendar in the following ways.

Correcting the Tax Period Structure for Tax Periods to be Prepared

On the Prepare Tax Report (TX501000) form, the system displays an error message if the start and end dates of the
tax period to be prepared differ from those of the corresponding financial periods for the selected company or if the
financial periods have been deleted.
To correct the tax period structure, do the following:
1. Open the Tax Periods (TX207000) form.
2. In the Company box, select the needed company.
3. In the Tax Agency box, select the needed tax agency.
4. In the Tax Year box, select the tax year for which you want to correct the period structure.
5. In the Tax Period Type box, make sure that Financial Period is selected.
6. On the More menu (under Period Management), click Synchronize Periods with GL.

Correcting the Tax Period Structure for Tax Periods to be Released

On the Release Tax Report (TX502000) form, if the start and end dates of the tax period to be released differ from
the corresponding financial period of the selected company or if the financial periods have been deleted, the
system displays an error message.
To correct the tax period structure, do the following:
1. Open the Release Tax Report (TX502000) form.
2. In the Summary area, specify the settings of the needed tax report—Company, Tax Agency, Tax Period, and
Revision.
3. On the form toolbar, click Void Report to void the tax report.
For more details on voiding a tax report, see Voiding a Tax Report for Sales Taxes.
4. Open the Tax Periods (TX207000) form.
5. In the Company box, select the needed company.
6. In the Tax Agency box, select the needed tax agency.
7. In the Tax Year box, select the tax year for which you want to correct the period structure.
 Implementing Taxes | 240

8. In the Tax Period Type box, make sure that Financial Period is selected.
9. On the More menu (under Period Management), click Synchronize Periods with GL.

Tax Periods: Configuration Prerequisites

Before configuring tax periods, you must be sure that the system has been configured properly and that all required
entities have been created, as described in the following sections.

Configuring the System

Before you configure tax periods, you need to make sure that the following configuration tasks have been
performed in the system:
• On the Vendors (AP303000) form, a vendor set up as a tax agency has been configured. For details, see Tax
Agency: To Set Up a Tax Agency for Sales Taxes.

Tax Periods: Implementation Activity

By performing the following implementation activity, you will learn how to configure tax periods for a particular tax
agency and branch.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that the Muffins & Cakes company has to file excise taxes every quarter to the tax agency starting from
1/1/2023.
Acting as an accountant of the Muffins & Cakes company, you need to configure set up quarterly tax periods for this
company.

Process Overview
On the Tax Periods (TX207000) form, you select the company and the tax agency for which you want to set up tax
periods different from the default ones and complete the configuration.

Initial Steps
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. To sign in as
an administrator, use the following credentials:
• Username: gibbs
• Password: 123
2. On the Company and Branch Selection menu, also on the top pane of the Acumatica ERP screen, make sure
that the Muffins Head Office and Wholesale Center branch is selected. If it is not selected, click the Company
and Branch Selection menu to view the list of branches that you have access to, and then click Muffins Head
Office and Wholesale Center.
 Implementing Taxes | 241

Step 1: Configure Tax Periods and Tax Year

1. Open the Tax Periods (TX207000) form.
2. In the Summary area of the form, specify the following settings:
• Company: MUFFINS
• Tax Agency: NYTAXDEP
• Tax Year: 2023
• Start Date: 1/1/2023 (inserted by default)
• Tax Period Type: Quarter
3. In the table, review the list of tax periods generated by the system.
4. Click Save to save the changes.

Tax Report

The topics of this chapter describe how to configure a tax report in Acumatica ERP to be sent to a particular tax
agency.

Tax Report Configuration: General Information

A tax report is a document that contains tax information related to your business and that must be filed to a specific
tax agency once per reporting period. The tax report is usually set up in a worksheet format that is determined by
the particular tax agency. In Acumatica ERP, you can configure the content elements of the tax report based on the
report form provided by the responsible tax agency, and define the rules for automatically filling the tax report with
appropriate values. Although the tax reports differ depending on the taxes to be reported, generally the elements of
the report form and the rules for filling the report are common.

Learning Objectives
From reading the topics in this chapter and completing the implementation activity, you will learn how to create
and configure a tax report.

Applicable Scenarios
You configure a tax report in Acumatica ERP to set up the processes of accumulating taxes and preparing the tax
report when it comes due. To configure a tax report, you should use as a template a blank tax report form from the
particular tax collection agency, and create a tax report with a similar structure in Acumatica ERP.

Tax Report Configuration Process

In Acumatica ERP, a tax report is represented as a table into which the system records the total tax amounts and
taxable amounts for the period to be reported to the tax agency. When you configure a tax report in Acumatica ERP,
you set up report lines that correspond to the tax agency’s report boxes. The resulting tax report is shown as a table
consisting of these lines. Each row of the table holds an accumulated tax amount or taxable amount calculated on
sales or purchases during the tax reporting period, or a sum or difference of these amounts. The number of lines in
a particular tax report may vary depending on the number of taxes you need to report.
To start the tax report configuration process, on the Report Lines tab of the Reporting Settings (TX205100) form,
you create the required lines in the report and specify the type of the amount (tax or taxable) that should be
 Implementing Taxes | 242

accumulated in each line. The number of the lines is prescribed by the tax report template from the applicable
tax agency, but you can create additional lines for your internal use—for example, to accumulate some taxable
amounts that should not be reported to the tax agency but that supervisors want to see. In these cases, you create
the line and select the Hide Report Line check box for it, so that the amount will be accumulated in that line, but
the line will be excluded from the tax report during its generation.
Aer you have created the required lines for the tax report, you need to create multiple reporting groups by using
the Reporting Groups tab. A reporting group is an Acumatica ERP entity that consists of one report line or multiple
report lines (which you add into the group later) and acts as a link between a particular tax and these report lines.
Thus, the tax amounts and taxable amounts calculated based on this tax in all sales or purchase documents update
the lines included in the reporting group. (You will specify a reporting group or two reporting groups for each tax
later.)
A reporting group can have one of the following types:
• Output: Specified for a tax that must be paid to a tax agency
• Input: Specified for a tax that can be claimed from a tax agency
For each tax, you can specify one or two reporting groups that are effective on a specific date: no more than one
Input group, and no more than one Output group.
The type of reporting group you specify for a tax depends on the type of the particular tax. You specify the type of
reporting group by using the Taxes (TX205000) form as follows:
• For a Sales tax, define an output reporting group for tax amounts calculated on customer invoices and
memos, which should be paid to the tax agency and (optionally) an input reporting group for tax amounts
calculated on vendor bills and adjustments.
• For a Use tax, define an output reporting group because the use tax amounts are paid to the tax agency.
• For a Withholding tax, define an output reporting group because the withholding tax amounts are paid to the
tax agency.
• For VAT or GST, define an input reporting group for tax amounts calculated on vendor bills and adjustments
that should be claimed from the tax agency, and an output reporting group for tax amounts calculated on
customer invoices and memos that should be paid to the tax agency.
Once you have configured the elements of the tax report (the report lines and reporting groups), you need to
add report lines to each reporting group you have created. You then associate each tax in the system with the
appropriate reporting group, so that the taxes will be associated with the reporting groups, which in turn are
related to some report lines. Thus, the tax amounts will be accumulated in the specific lines of the tax report.

Tax Reporting Period

For each tax agency defined on the Vendors (AP303000) form, you can specify the frequency of tax report
preparation in the Default Tax Period Type box on the Tax Agency tab; you can select Half a Month, Month, Two
Months, Quarter, Half a Year, Year, or Financial Period.
The selected tax period type determines the tax reporting periods defined for the tax agency. You can view these
tax periods for each company on the Tax Periods (TX207000) form, where you can also change the tax period type
for a particular company if the period type differs from the default one. These tax periods will be displayed in the
Reporting Period box on the Prepare Tax Report (TX501000) form while you are preparing a tax report.

AP Bill to Pay the Tax Report

You use the Release Tax Report (TX502000) form to release the prepared tax report. You can set up the system to
automatically generate an AP bill on release of a tax report to a particular agency. The AP bill will contain the total
tax amount that you must pay to the tax agency for the selected reporting period. To set up the system to generate
an AP bill while releasing a tax report, you do the following:
 Implementing Taxes | 243

1. On the Tax Agency tab of the Vendors (AP303000) form, you select the Automatically Generate Tax Bill
check box for the needed tax agency. With this setting an AP bill will be automatically generated on release
of the tax report at the end of the reporting period.
2. On the Reporting Settings (TX205100) form, you identify the line that accumulates the appropriate tax
amounts, and select the Net Tax check box for that line.

Once a tax report is released, the system generates an AP bill in the amount of the line for which the Net Tax check
box is selected. This AP bill appears on the AP Documents tab of the Release Tax Report form, where you can open
and view the bill by clicking its number in the Reference Nbr. column. For details, see Tax Report Preparation:
Process Activity and Tax Report for VAT: Process Activity.

If you have posted any documents to a closed reporting period for which you have already released a tax report,
you can prepare a revision of the tax report for the closed reporting period. The functionality of updating a closed
reporting period is available if the Update Closed Tax Periods check box is selected for the tax agency on the Tax
Agency tab of the Vendors form.

Tax Report Configuration: Report Lines by Tax Zones

In the tax report, you can configure the report lines to be itemized by tax zones. That is, the amount accumulated
in the particular line will be split by tax zones, with a separate line shown for each involved tax zone. To configure
the report line in this way, select the Detail by Tax Zones check box for the required line on the Report Lines tab of
the Reporting Settings (TX205100) form. To view report lines that are split by tax zones, select the Show Tax Zones
check box in the Selection area of this form. As a result, the tax report that you prepare on the Prepare Tax Report
(TX501000) form will contain the lines with the corresponding amounts itemized by tax zones.
You can also configure report lines that show amounts related to a particular tax zone. To do this, on the Report
Lines tab on the Reporting Settings form, select the required tax zone in the Tax Zone ID column for the required
report line or lines. As a result, an appropriate tax or taxable amount calculated in sales or purchase documents
related to a selected tax zone will update this report line.
Related Links
• Tax Zones and Tax Categories
• Preparing a Tax Report for Sales Taxes

Tax Report Configuration: Report Currency

If the Multicurrency Accounting feature is enabled on the Enable/Disable Features (CS100000) form, you can specify
a particular currency for a tax agency (which is defined in the system as a vendor) on the Vendors (AP303000) form.
This currency will be used for creating a tax report for this tax agency. If the currency of a tax report (which is the
currency of the tax agency) is different from the currency of a document subjected to specific tax, the system uses
the exchange rate between these currencies of the type assigned to the tax agency effective on the date of the
document. You can enter the exchange rates that might be needed for tax reports by using the Currency Rates
(CM301000) form.

Tax Report Configuration: Multiple Versions of a Tax Report

Acumatica ERP supports multiple versions of tax reports. If the format of a tax return is changed by tax authorities,
you can create an amended version of a tax report for a specific tax agency based on the new requirements.
You can prepare these modifications in advance and specify the date when they become valid. By using this
functionality, you can prepare an amendment of a tax report for previous periods in which the old reporting
settings were used.
 Implementing Taxes | 244

For example, in February 2022, you can prepare a tax report for January 2022 to meet the 2022 tax regulations. At
the same time, if needed, you can prepare an amendment for the tax report for December 2021 and use the old
settings of the tax report for this amendment. You can run the tax reports for 2021 and 2022 based on the reporting
settings that are valid for the respective year.

Creation of a New Version of a Tax Report

You create a new version of a tax report on the Reporting Settings (TX205100) form as follows:
1. In the Summary area, you select a tax agency.
When the report settings are initially specified for a particular tax agency, the system inserts 1 specified in
the Report Version box and the current date in the Valid From box. The version is 1 for the initial report
configuration on the form and is incremented for each new version.
2. On the More menu, you click one of the following commands:
• Add New Version if you want to create an empty version of the tax report for the selected tax agency. In
the new version, the records on the Reporting Groups tab will be copied, but the records on the Report
Lines tab will not be copied.
• Copy Version if you want to copy the selected report version and paste it as a new version for the
selected tax agency. In the new version, the records on the Report Lines and Reporting Groups tabs will
be copied too.
The system inserts the new report version in the Report Version box. In the Valid From box, it inserts the
current business date. The new version will become effective starting on this date.
3. You update the settings on the Report Lines and Reporting Groups tabs and save the report version.

Selection of a Report Version When Preparing and Releasing a Tax Report

On the Prepare Tax Report (TX501000) form, the process that you run uses the report version that corresponds to
the tax period selected on that form.
On the Release Tax Report (TX502000) form, the process that you run uses the report version for which the tax
report has been prepared on the Prepare Tax Report form.
For the selected tax agency, during both processes, the system applies the report version that has the following
settings on the Reporting Settings (TX205100) form:
• The Valid From date is earlier than or the same as the end date of the selected tax period.
• The Report Version is the highest of the tax agency's available versions.
If a tax report has multiple versions with a Valid From date that falls within the reporting period, the system will
select the version with a Valid From date that is closest to the end date of the tax period.

Support of Report Versions in Tax-Related Reports and Inquiries

When you run the Tax Summary (TX621000) or Tax Details (TX620500) report or use the Tax Report Details
(TX502010) form, the system uses the report version specified in the Report Version box on the Reporting Settings
(TX205100) form for which a tax report has been prepared on the Prepare Tax Report (TX501000) form for the
selected tax period.

Tax Report Configuration: Configuration Prerequisites

Before starting the creation of a tax report, you must be sure that the system has been configured properly and that
all required entities have been created, as described in the following sections.
 Implementing Taxes | 245

Configuring the System

Before you configure a tax report, you need to make sure that the following configuration tasks have been
performed in the system:
• If you are configuring a tax report for VAT, on the Enable/Disable Features (CS100000) form, the VAT Reporting
feature has been enabled.
• On the Chart of Accounts (GL202500) form, the GL accounts that should be used for recording tax-related
amounts have been created.
• On the Vendors (AP303000) form, a vendor set up as a tax agency has been configured. For details, see Tax
Agency: To Set Up a Tax Agency for Sales Taxes and Tax Agency: To Set Up a Tax Agency for VAT.
• On the Tax Agency tab of the Vendors form, the Automatically Generate Tax Bill check box is selected.
This setting means that on release of a tax report, the system will automatically generate the tax bill to the
agency and will use the tax amount accumulated in the Tax Total line as the document amount.

Tax Report Configuration: To Create a Tax Report for Sales Taxes

By performing this implementation activity, you will learn how to configure the content of a tax report for sales
taxes, and to specify the rules of accumulating the data in the report lines.

Story
Suppose that the Colorado State Department of Revenue agency, to which the Muffins & Cakes company is going to
report taxes, requires that the tax report includes the following lines:
1. Taxable Sales: Accumulates the total amount of sales subjected to sales tax and processed in the tax period
2. Total Tax: Accumulates the total sales tax amount of AR documents processed in the tax period
3. Exempt Sales: Accumulates the total amount of tax-exempt sales processed in the tax period
4. Gross Sales: Accumulates the total amount of sales (excluding the tax amounts) processed in the tax period
(that is, Taxable Sales + Exempt Sales)
5. Tax on Purchases: Accumulates the total amount of purchases subjected to sales tax and processed in the
tax period

Acting as an implementation consultant, you need to configure the tax report to meet the requirements of the tax
agency.

Configuration Overview
In the U100 dataset, the following configuration tasks have been performed to prepare the system for this activity
to be performed:
• On the Vendors (AP303000) form, the COTAXDEP vendor has been created and configured as a tax agency. For
details, see Tax Agency: To Set Up a Tax Agency for Sales Taxes.

Process Overview
In this activity, you will prepare the tax report by doing the following:
1. You will create a tax report for the needed tax agency and add lines to it on the Reporting Settings (TX205100)
form.
2. You will add reporting groups on the Reporting Groups tab of the Reporting Settings form.
 Implementing Taxes | 246

3. On the Reporting Groups (TX205200) form, you will specify the report lines that should be updated by the
taxes associated with each reporting group.
4. On the Reporting Settings form, you will review the calculation rule for one of the report lines added
automatically by the system.

The following diagram illustrates how the taxes will be accumulated in the tax report that you will configure in this
activity.

Figure: Process of accumulating sales taxes

System Preparation
Before you begin to configure the tax report, do the following:
1. As a prerequisite activity, configure the COTAXDEP tax agency as described in Tax Agency: To Set Up a Tax
Agency for Sales Taxes.
2. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded.
3. To sign in as an administrator, use the following credentials:
• Username: gibbs
• Password: 123

Step 1: Creating a Tax Report and Adding Report Lines

To create a tax report and add report lines to it, proceed as follows:
1. Open the Reporting Settings (TX205100) form.
2. In the Tax Agency ID box, select COTAXDEP.
3. On the Report Lines tab, for each line of the tax report to be added, click Add Row on the table toolbar and
specify the appropriate settings (listed below) in the row:
 Implementing Taxes | 247

Report Description Update With Update Rule Net Tax Hide Report
Line Order Line
(added by
default)

1 Taxable Taxable +Output-Input Cleared Cleared

Sales Amount

2 Tax Total Tax Amount +Output-Input Selected Cleared

3 Exempt Sales Taxable +Output-Input Cleared Cleared

Amount

4 Gross Sales Taxable +Output-Input Cleared Cleared

Amount

5 Tax on Pur- Tax Amount +Input-Output Cleared Selected

chases

Because you selected the Net Tax check box for the Tax Total report line, the amount accumulated in this
line will be used as the document amount in the tax bill generated by the system for the tax agency.
4. On the form toolbar, click Save to save the report.

Step 2: Adding Reporting Groups to the Report

To add reporting groups to the newly created tax report, while you are still viewing the report on the Reporting
Settings (TX205100) form, proceed as follows:

1. On the Reporting Groups tab, for each line to be added, click Add Row on the table toolbar and specify the
appropriate settings (listed below) in the row:
• Name: Taxable, Group Type: Output
You will assign to this group the DENTAX tax with a 8.310% rate, which will apply to taxable items sold in
Denver, Colorado.

You use the Output type for output taxes that are collected from customers and paid to a
tax agency.

• Name: Exempt, Group Type: Output

You will assign to this group the DENEXEMPT tax with a 0% rate, which is needed to report tax-exempt
sales.
• Name: Input, Group Type: Input
You will assign to this group the DENTAX tax with a 8.310% rate, which will be applied to purchase of
taxable items in Denver, Colorado.
2. On the form toolbar, click Save to save your changes.

Step 3: Specifying the Report Lines to be Updated

To specify which report lines will be updated with taxes, proceed as follows:
1. While you are still viewing the report on the Reporting Settings (TX205100) form, in the table on the
Reporting Groups tab, click the row for the Taxable group, and on the table toolbar, click Group Details.
 Implementing Taxes | 248

2. On the Reporting Groups (TX205200) form, which opens, for each line to be added, click Add Row on the
table toolbar, and specify the appropriate settings (listed below) in the row:
• Report Line: 1 - Taxable Sales
• Report Line: 2 - Tax Total
• Report Line: 4 - Gross Sales
3. On the form toolbar, click Save to save your changes.
The taxes that you will assign to the Taxable reporting group will be included in report lines 1, 2, and 4.
4. In the Reporting Group box of the Summary area, select 2 - Exempt.
5. For each line to be added, on the table toolbar, click Add Row, and specify the appropriate settings in the
added row:
• Report Line: 3 - Exempt Sales
• Report Line: 4 - Gross Sales
6. On the form toolbar, click Save to save your changes. The taxes that you will assign to the Exempt reporting
group will be included in report lines 3 and 4.
7. In the Reporting Group box, select 3 - Input.
8. On the table toolbar, click Add Row, and in the Report Line column of the row, select 5 - Tax on Purchases.
The tax that you will assign to this report line will not be included in the tax report, because this line is
marked as hidden.
9. On the form toolbar, click Save to save your changes.

Step 4: Reviewing the Calculation Rule for a Report Line

To review the calculation rules for a report line, proceed as follows:
1. Open the Reporting Settings (TX205100) form.
2. In the Tax Agency ID box, select COTAXDEP.
3. On the Report Lines tab, review the Calc. Rule column for report line 4.
The system has automatically updated the calculation rule for report line 4, based on the reporting group
settings that you have specified. You have configured the reporting groups so that the 1 - Taxable Sales line
is updated by the taxes included in the Taxable Sales group, the 3 - Exempt Sales line is updated by the taxes
included in the Exempt Sales group, and the 4 - Gross Sales line is updated by the taxes that are included in
the Taxable Sales or Exempt Sales group. As a result, the amount of the aggregate line 4 is calculated as the
sum of the amounts in lines 1 and 3.

Tax Report Configuration: To Create a Tax Report for VAT

By performing this implementation activity, you will learn how to configure the content of a tax report for general
VAT, and to specify the rules of accumulating the data in the report lines.

Story
Suppose that the tax agency, to which the SweetLife Fruits & Jams company is going to report VAT, requires that the
tax report includes the following lines:
1. Taxable Sales: Accumulates the total amount of taxable sales processed in the tax period
2. Exempt Sales: Accumulates the total amount of VAT-exempt sales processed in the tax period
 Implementing Taxes | 249

3. Total Sales: Accumulates the total sales amount (that is, Taxable Sales + Exempt Sales) in the tax period,
excluding the tax amounts
4. Taxable Purchases: Accumulates the total amount of taxable purchases processed in the tax period
5. Exempt Purchases: Accumulates the total amount of VAT-exempt purchases processed in the tax period
6. Total Purchases: Accumulates the total purchases amount of documents (that is, Taxable Purchases +
Exempt Purchases) processed in the tax period, excluding the tax amounts
7. Total Output Tax: Accumulates the total tax amount collected from customers in the tax period
8. Total Input Tax: Accumulates the total tax amount paid to vendors in the tax period
9. Tax Amount Payable: Accumulates the total tax amount to be paid to the tax agency in the tax period (that is,
output tax minus input tax)

Acting as an implementation consultant, you need to configure the tax report to meet the requirements of the tax
agency.

Configuration Overview
In the U100 dataset, the following configuration tasks have been performed to prepare the system for this activity
to be performed:
• On the Enable/Disable Features (CS100000) form, the VAT Reporting feature has been enabled.

Process Overview
In this activity, you will prepare the tax report by doing the following:
1. You will create a tax report for the needed tax agency and add lines to it on the Reporting Settings (TX205100)
form.
2. You will add reporting groups on the Reporting Groups tab of the Reporting Settings form.
3. On the Reporting Groups (TX205200) form, you will specify the report lines that should be updated by the
taxes associated with each reporting group.
4. On the Reporting Settings form, you will review the calculation rule for the report lines added automatically
by the system.

System Preparation
To prepare the system, do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. You should
sign in as an implementation consultant by using the gibbs username and the 123 password.
2. As a prerequisite activity, in the company to which you are signed in, be sure you have configured a tax
agency as described in Tax Agency: To Set Up a Tax Agency for VAT.

Step 1: Creating a Tax Report and Adding Report Lines

To create a tax report and add report lines to it, do the following:
1. Open the Reporting Settings (TX205100) form.
2. In the Tax Agency ID box, select VATTAX.
3. In the Valid From box, select 1/1/2023.
4. On the Report Lines tab, for each line of the tax report to be added, click Add Row on the table toolbar and
specify the appropriate settings (listed below) in the row:
 Implementing Taxes | 250

Report Description Update With Update Rule Net Tax Hide Report
Line Order Line
(added by
default)

1 Taxable Taxable +Output-Input Cleared Cleared

Sales Amount

2 Exempt Sales Taxable +Output-Input Cleared Cleared

Amount

3 Total Sales Taxable +Output-Input Cleared Cleared

Amount

4 Taxable Pur- Taxable +Input-Output Cleared Cleared

chases Amount

5 Exempt Pur- Taxable +Input-Output Cleared Cleared

chases Amount

6 Total Pur- Taxable +Input-Output Cleared Cleared

chases Amount

7 Total Output Tax Amount +Output-Input Cleared Cleared

Tax

8 Total Input Tax Amount +Input-Output Cleared Cleared

Tax

9 Tax Amount Tax Amount +Output-Input Selected Cleared

Payable

Because you selected the Net Tax check box for the Tax Amount Payable report line, the amount
accumulated in this line will be used as the document amount in the tax bill generated by the system for the
tax agency.

In the report that you have configured, tax and taxable amounts for a particular tax will be
accumulated in the same report lines, even if the customers and vendors belong to different
tax zones. To break down the amounts by tax zones in the tax report, you can create separate
report lines for each tax zone and select the zone in the Tax Zone ID column, so that each line
will include amounts for the selected tax zone only.
Alternatively, you can select the Detail By Tax Zones check box for the needed report line,
to make the system split this line into multiple lines, one for each tax zone that exists in the
system. If you create a new tax zone aer the tax report has already been configured, click the
Reload Tax Zones button to make the system add report lines for the newly created tax zone.

5. On the form toolbar, click Save.

Step 2: Adding Reporting Groups to the Report

To add reporting groups to the newly created tax report, while you are still viewing the report on the Reporting
Settings (TX205100) form, do the following:
 Implementing Taxes | 251

1. On the Reporting Groups tab, for each line to be added, click Add Row on the table toolbar and specify the
appropriate settings (listed below) in the row:
• Name: Taxable Sales, Group Type: Output
You will assign to this group the VAT with a 7% rate that will apply to taxable sales.
• Name: Taxable Purchases, Group Type: Input
You will assign to this group the VAT with a 7% rate that will apply to taxable purchases.
• Name: Exempt Sales, Group Type: Output
You will assign to this group the zero-rate VATEXEMPT tax, which will apply to exempt sales.
• Name: Exempt Purchases, Group Type: Input
You will assign to this group the zero-rate VATEXEMPT tax, which will apply to exempt purchases.

You use the Output type for the taxes that are collected from the customers and should be paid
to a tax agency. You use the Input type for the taxes that are paid to vendors and thus should
be claimed from a tax agency.

2. On the form toolbar, click Save.

Step 3: Specifying the Report Lines to be Updated

To specify which report lines will be updated with taxes, do the following:
1. While you are still viewing the report on the Reporting Settings (TX205100) form, in the table on the
Reporting Groups tab, click the row for the Taxable Sales group, and on the table toolbar, click Group
Details.
2. On the Reporting Groups (TX205200) form, which opens, for each line to be added, click Add Row on the
table toolbar, and specify the appropriate settings (listed below):
• Report Line: 1 - Taxable Sales
• Report Line: 3 - Total Sales
• Report Line: 7 - Total Output Tax
• Report Line: 9 - Tax Amount Payable
3. On the form toolbar, click Save to save your changes.
The taxes that you will assign to the Taxable Sales reporting group will be included in report lines 1, 3, 7, and
9. Thus, the taxable amount of invoices subject to output VAT will update the values in the 1 - Taxable Sales
and 3 - Total Sales lines, while the tax amount will update the 7 - Total Output Tax and 9 - Tax Amount Payable
lines.
4. In the Reporting Group box of the Summary area, select Taxable Purchases.
5. For each line to be added, on the table toolbar, click Add Row, and specify the appropriate settings in the
added row:
• Report Line: 4 - Taxable Purchases
• Report Line: 6 - Total Purchases
• Report Line: 8 - Total Input Tax
• Report Line: 9 - Tax Amount Payable
6. On the form toolbar, click Save to save your changes. The taxes that you will assign to the Taxable Purchases
reporting group will be included in report lines 4, 6, 8, and 9.
7. In the Reporting Group box, select Exempt Sales.
8. For each line to be added, on the table toolbar, click Add Row, and specify the appropriate settings in the
added row:
• Report Line: 2 - Exempt Sales
 Implementing Taxes | 252

• Report Line: 3 - Total Sales

9. On the form toolbar, click Save to save your changes. The taxes that you will assign to the Exempt Sales
reporting group will be included in report lines 2 and 3.
10.In the Reporting Group box, select Exempt Purchases.
11.For each line to be added, on the table toolbar, click Add Row, and specify the appropriate settings in the
added row:
• Report Line: 5 - Exempt Purchases
• Report Line: 6 - Total Purchases
12.On the form toolbar, click Save to save your changes. The taxes that you will assign to the Exempt Purchases
reporting group will be included in report lines 5 and 6.

Step 4: Reviewing the Calculation Rule for Report Lines

To review the calculation rules for report lines, do the following:
1. Open the Reporting Settings (TX205100) form.
2. In the Tax Agency ID box, select VATTAX.
3. On the Report Lines tab, review the Calc. Rule column.
You have configured the reporting groups so that the 1 - Taxable Sales line is updated by the taxes included
in the Taxable Sales group, the 2 - Exempt Sales line is updated by the taxes included in the Exempt Sales
group, and the 3 - Total Sales line is updated by the taxes that are included in both the Taxable Sales and
Exempt Sales groups.
As a result, the aggregate line 3 amount is calculated as a sum of the amounts in lines 1 and 2. The system
has automatically updated the calculation rule based on the settings that you have specified. Similarly,
report line 6 is the aggregate line that is updated by the taxable amounts included in lines 4 and 5, and
report line 9 is the aggregate line updated by the tax amounts included in lines 7 and 8.

Tax Report Configuration: To Create a Tax Report for VAT Variations

By performing this implementation activity, you will learn how to configure the content of a tax report for multiple
variations of value-added tax, and to specify the rules of accumulating the data in the report lines.

Story
Suppose that SweetLife Fruits & Jams is going to report multiple type of VAT besides the general VAT and needs a
separate tax agency and a tax report for this purpose. Acting as an implementation consultant, you need to create a
tax agency and a tax report for VAT variations.
The tax report should include the following lines:
• Net Tax to Pay or Reclaim: Accumulates the total tax amount to be paid to the tax agency or reclaimed from
the tax agency in the tax period (that is, output tax minus input tax).
• Reverse VAT: Accumulates the total tax amount of reverse VAT to be paid to the tax agency. This report line
will be used for reporting a reverse VAT.
• Standard-Rated Acquisitions: Accumulates the total tax amount to be paid to the tax agency or reclaimed
from the tax agency in the tax period. This report line will be used for reporting a generate VAT that offsets
the reverse VAT.
• Deductible VAT: Accumulates the total tax amount of partially deductible VAT on the company's purchases.
This report line will be used for reporting a partially deductible VAT.
 Implementing Taxes | 253

Configuration Overview
In the U100 dataset, the following configuration tasks have been performed to prepare the system for this activity
to be performed:
• On the Enable/Disable Features (CS100000) form, the VAT Reporting feature has been enabled.
• On the Vendor Classes (AP201000) form, the TAXAGENCY vendor class has been configured.
• On the Chart of Accounts (GL202500) form, the 24100 (Tax Payable), 17000 (Tax Claimable), and 65100 (Other
Tax Expenses) accounts have been created.

Process Overview
In this activity, you will do the following:
1. On the Vendors (AP303000) form, you will create a tax agency for VAT variations.
2. You will create a tax report for the needed tax agency and add lines to it on the Reporting Settings (TX205100)
form.
3. You will add reporting groups on the Reporting Groups tab of the Reporting Settings form.
4. On the Reporting Groups (TX205200) form, you will specify the report lines that should be updated by the
taxes associated with each reporting group.

System Preparation
To prepare the system, do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. You should
sign in as an implementation consultant by using the gibbs username and the 123 password.
2. As a prerequisite activity, be sure

Step 1: Creating a Tax Agency

To create a tax agency, do the following:
1. Open the Vendors (AP303000) form.
2. On the form toolbar, click Add New Record.
3. In the Summary area, specify the following settings:
• Vendor ID: VATVAR
• Status: Active
• Vendor Class: TAXAGENCY
4. On the General tab, in the Account Name box, specify Tax Agency for VAT Variations.
5. In the Vendor Properties section, select the Vendor Is Tax Agency check box.
6. On the form toolbar, click Save.
7. Open the Tax Agency tab.
8. In the Default Tax Accounts section, specify the following settings:
• Tax Payable Account: 24100 (Tax Payable)
• Tax Claimable Account: 17000 (Tax Claimable)
• Tax Expense Account: 65100 (Other Tax Expenses)
 Implementing Taxes | 254

9. In the Tax Report Settings section, specify the following settings:

• Default Tax Period Type: Month
• Automatically Generate Tax Bill: Selected
• Use Currency Precision: Selected
10.On the form toolbar, click Save.

Step 2: Creating a Tax Report, Adding Report Lines, and Creating Reporting Groups
To create a tax report for the new agency, add report lines, and create reporting groups, do the following:
1. Open the Reporting Settings (TX205100) form.
2. In the Tax Agency ID box, select VATVAR.
3. In the Valid From box, select 1/1/2023.
4. On the Report Lines tab, click Add Row on the table toolbar for each new line, and specify the following
settings:

Report Description Update With Update Rule Net Tax

Line Order

1 Net Tax to Pay or Reclaim Tax Amount +Output-Input Selected

2 Reverse VAT Tax Amount +Output-Input Cleared

3 VAT on Standard-Rated Ac- Tax Amount +Input-Output Cleared

quisitions

4 Deductible VAT Tax Amount +Input-Output Cleared

5 Pending Output VAT Tax Amount +Output-Input Cleared

5. On the form toolbar, click Save.

6. On the Reporting Groups tab, click Add Row on the table toolbar for each new line, and specify the
following settings:

Name Group Type

Reverse Output

Standard-Rated Acquisitions Input

Deductible Input

Pending (Output) Output

7. On the form toolbar, click Save.

Step 3: Adding the Reporting Groups to the Report

To add the reporting groups to the report, do the following:
1. Open the Reporting Groups (TX205200) form.
 Implementing Taxes | 255

2. In the Tax Agency box, select VATVAR.

3. In the Reporting Group box, select 1 - Reverse.
4. In the Report Version box, select 1.
5. Click Add Row on the table toolbar, and add two rows, specifying the following settings (listed below) for
each row:
• Report Line: 1 - Net Tax to Pay or Reclaim
• Report Line: 2 - Reverse VAT
6. On the form toolbar, click Save.
7. In the Reporting Group box, select 2 - Standard Rated Acquisitions.
8. In the Report Version box, select 1.
9. Click Add Row on the table toolbar, and add two rows, specifying the following settings (listed below) for
each row:
• Report Line: 1 - Net Tax to Pay or Reclaim
• Report Line: 3 - VAT on Standard-Rated Acquisitions
10.In the Reporting Group box, select 3 - Deductible.
11.In the Report Version box, select 1.
12.Click Add Row on the table toolbar, and add two rows, specifying the following settings (listed below) for
each row:
• Report Line: 1 - Net Tax to Pay or Reclaim
• Report Line: 4 - Deductible VAT
13.In the Reporting Group box, select 4 - Pending (Output).
14.In the Report Version box, select 1.
15.Click Add Row on the table toolbar, and add two rows, specifying the following settings (listed below) for
each row:
• Report Line: 1 - Net Tax to Pay or Reclaim
• Report Line: 5 - Pending Output VAT
16.On the form toolbar, click Save.

Tax Zones and Tax Categories

The topics of this chapter describe how to create tax zones and tax categories in Acumatica ERP.

Tax Zones and Categories: General Information

In some countries (for example, most European countries), taxes and their rates are defined at the federal level. In
other countries, taxes are applied at multiple levels corresponding to geographical areas (federal, state, county,
and municipality). So the taxes that a company pays or collects and their rates may differ from place to place,
and may be common to the same geographical area. In Acumatica ERP, you can organize taxes by groups that
are applicable in the same area by creating tax zones. When you create taxes in the system, you assign them to all
applicable tax zones.
The taxes and their rates may also be different depending on the type of the goods or services you are selling or
purchasing. For example, depending on whether the goods sold are electronic goods or food, the applied rate of
the sales tax may be different even in the same geographical area. In Acumatica ERP, you can create tax categories
to group the taxes that are applicable to particular services or goods. When you create taxes in the system, you
 Implementing Taxes | 256

specify the tax categories to which the tax belongs. You also select the tax category for non-stock and stock items
defined in the system.
As a result of assigning taxes to the appropriate entities, you can ensure that the system will correctly apply taxes in
various documents in the system.

Learning Objectives
From reading the topics in this chapter and completing the implementation activity, you will learn how to do the
following:
• Create a tax zone and a tax category
• Review the tax categories existing in the system
• Assign tax categories to non-stock items

Applicable Scenarios
You create tax categories in Acumatica ERP early in the process of the implementation of taxes in the system. You
then assign the appropriate categories to taxable or exempt items (stock and non-stock); you also assign a tax
category to each tax. You create tax zones for all applicable geographical areas where your company does business
so that you can assign taxes to the tax zones that correspond to these geographical locations.

Tax Zones
In Acumatica ERP, a tax zone is a group of taxes levied on a particular geographical area for all goods and services
that may be sold or purchased by your company. You create tax zones for all geographical areas of your customers
and vendors and then assign appropriate taxes to these tax zones. Aer that, you specify the appropriate tax zone
for each customer and vendor account.
You create a tax zone by using the Tax Zones (TX206000) form. You can create as many tax zones as you need. For
each tax zone, you can specify the default tax category that will be used by default for this tax zone in document
lines in which an item is not specified; if a stock or non-stock item is selected, the tax category of the item will
be used to define the taxes that apply to the line. If needed, you can override the default tax category for any
document line.
You can also assign a particular tax zone to each branch of your company on the Delivery Settings tab of the
Branches (CS102000) form. If no tax zone is specified for a customer in the Tax Zone box in the Tax Settings section
on the Shipping tab of the Customers (AR303000) form, the system applies the tax assigned to the tax zone of the
branch specified in the Branch box on the Financial tab of the Invoices and Memos (AR301000) form.

Tax Categories
A tax category is a group of taxes that are levied for selling or purchasing particular goods or services, regardless
of the geographical location of the seller, the buyer, or the sale. You create a tax category and associate it with
the appropriate goods and services, which are defined as stock and non-stock items in Acumatica ERP. The
taxes of a particular tax category will be used for calculating the tax amounts in the documents that include the
corresponding stock or non-stock items. Any number of taxes can be assigned to a tax category, and they can be
any type.
However, not all taxes included in the tax category specified for an item will be applied to a particular bill or invoice
that includes the item. The taxes that are not levied in the tax zone of the vendor or customer specified in the
document will be excluded. Thus, only the taxes included both in the tax category of the stock or non-stock item
and in the tax zone of the vendor or customer will be applied to the item and included in the tax amount.
For example, consider a company that sells books in Oregon and Delaware; the company defines a Books tax
category that includes the sales taxes of both states. In reality, a customer from Delaware pays only the Delaware
tax and a customer from Oregon pays only the Oregon tax, because the customers are located in different tax zones,
each with a specific tax. To apply taxes appropriately, for each sale transaction, the system applies only taxes in
 Implementing Taxes | 257

both the tax zone and tax category lists. The Delaware tax zone, then, includes the tax that applies to book sales in
this state, and the Oregon tax zone includes the state-specific tax applicable to books.
You can create a tax category that includes the taxes that should be excluded from the tax zone, so that the
products or services of this tax category are the subject to all taxes of the tax zone except the taxes included in this
tax category. To do this, select the Exclude Listed Taxes check box on the Tax Categories (TX205500) form.

Tax Application Diagram

The diagram below illustrates how taxes are applied in AR documents. For details, see Invoices with Sales Taxes:
General Information and AR Documents with VAT: To Process an AR Invoice.

Figure: Application of taxes to an AR document

Tax Zones and Categories: Automatic Assignment of a Tax Zone in Documents

On the Tax Zones (TX206000) form, tax zones can be defined based on combinations of country, state, and postal
code, and ranges of postal codes can be specified. The system supports three types of tax zones:
• Tax zones based on one country or multiple countries. With this type of tax zone, a user can include entire
countries in the tax zone.
• Tax zones based on one state or multiple states. A user can assign any combination of states of the same
country to this tax zone. With this type, the tax zone consists of the entire state or states.
• Tax zones based on one postal code or multiple postal codes. Multiple ranges of postal codes within the
same country can be assigned to this tax zone.
To select a type of for a specific tax zone, on the Ship-To Addresses tab of the Tax Zones form, you select one of the
following options in the Tax Zone Is Based On box:
• Countries: The tax zone is based on any number of countries. To add each country in the tax zone, you click
Add Row on the table toolbar and select the country from the list in the Country column.
 Implementing Taxes | 258

• States: The tax zone is based on any number of states of a specific country. You select a country in the
Country box and then add each state in the tax zone by clicking Add Row on the table toolbar and selecting
the state in the list in the State column.
• Postal Codes (default): The tax zone is based on any number of ranges of postal codes within a specific
country. You select a country in the Country box and then add each range of postal codes in the tax zone
by clicking Add Row on the table toolbar and entering the needed values in the From Postal Code and To
Postal Code columns.
On data entry forms, if a customer has an empty tax zone, the system searches for a tax zone that matches the
range of postal codes specified on the Tax Zones form. If no tax zone is found, the system continues searching for a
tax zone that matches the state of the shipping address. If no tax zone is found, the system searches for a tax zone
that matches the country of the shipping address. The system considers the combination of the country, state, and
postal code in the shipping address while searching for a matching tax code.
The automatic search for a tax zone is applied in the following boxes on the following forms: and
• Invoices and Memos (AR301000): Customer Tax Zone (Financial tab)
• Sales Orders (SO301000): Customer Tax Zone (Financial tab)
• Invoices (SO303000): Customer Tax Zone (Financial tab)
• Opportunities (CR304000): Tax Zone (Shipping tab)
• Project Quotes (PM304500): Tax Zone (Financial tab)
• Sales Quotes (CR304500): Tax Zone (Shipping tab)
• Service Orders (FS300100): Customer Tax Zone (Financial tab)
• Appointments (FS300200): Customer Tax Zone (Financial tab)

Tax Zones and Categories: Configuration Prerequisites

Before starting the creation of tax zones and categories, you must be sure that the system has been configured
properly and that all required entities have been created, as described in the following section.

Before you create tax zones, you should first create at least the tax categories that will be specified as
the default tax category for each tax zone.

Configuring the System

Before you create a tax zone and category, you need to make sure that the following configuration tasks has been
performed in the system:
• For VAT, on the Enable/Disable Features (CS100000) form, the VAT Reporting feature has been enabled.
• On the Taxes (TX205000) form, the taxes that you will add to the tax categories have been created.

Tax Zones and Categories: To Review Tax Categories and Create a Tax Zone for Sales
Taxes

By performing the following implementation activity, you will review tax categories and their settings and learn
how to create a tax zone for sales taxes.
 Implementing Taxes | 259

Story
The Muffins & Cakes company, which operates in Denver, Colorado, provides delivery services that are subject to a
8.31% sales tax. While two tax categories have been already created in Acumatica ERP (TAXABLE and EXEMPT), no
other tax configuration has been performed.
You need to assign the TAXABLE tax category to the needed non-stock item (DELIVERY). You also need to create a tax
zone for Denver, Colorado, to which you will also assign the TAXABLE category as the default tax category of the tax
zone.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• On the Tax Categories (TX205500) form, the TAXABLE and EXEMPT tax categories have been configured.
• On the Taxes (TX205000) form, the NYSTATETAX and NYNOTAX taxes has been configured.
• On the Non-Stock Items (IN202000) form, the DELIVERY item has been configured.

Process Overview
In this activity, you will first review the tax categories on the Tax Categories (TX205500) form and the taxes in these
zones, and then assign the TAXABLE category to an item on the Non-Stock Items (IN202000) form. You will then
create the needed tax zone on the Tax Zones (TX206000) form, assigning the appropriate default tax category to it.

System Preparation
Before you begin to work with tax categories and tax zones, do the following:
1. As a prerequisite activity, configure a tax report as described in Tax Report Configuration: To Create a Tax
Report for Sales Taxes.
2. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded.
3. To sign in as an administrator, use the following credentials:
• Username: gibbs
• Password: 123

Step 1: Reviewing Tax Categories and Assigning a Tax Category to a Non-Stock Item
To review the existing tax categories and assign a tax category to a non-stock item, proceed as follows:
1. Open the Tax Categories (TX205500) form.
2. In the Tax Category ID, select TAXABLE and review the taxes included in the tax category.
3. Click the NYSTATETAX link in the Tax ID column to open the tax on the Taxes (TX205000) form. Notice the
Tax Schedule settings in the table. For the TAXABLE category, for the NYSTATETAX assigned to this category,
the tax rate of 8.875 with the 1/1/2023 date is applied, the Group Type is Output and the Tax Agency in the
Summary area is specified. It means that sales with this sales tax will be shown in the tax report generated
for this agency.
4. Close the Taxes form and return to the Tax Categories form.
5. In the Tax Category ID, select EXEMPT and review the taxes included in the tax category.
6. Click the NYNOTAX link in the Tax ID column to open the tax on the Taxes form. The EXEMPT category
contains the tax with the tax rate of 0, indicating that the goods assigned to this tax category are exempt
from the sales tax, but the Group Type is Output and the Tax Agency in the Summary area is specified. It
 Implementing Taxes | 260

means that exempt sales will be shown in the tax report generated for this agency because the specified
reporting group is associated with report lines.
7. Close the Taxes form and return to the Tax Categories form.
All of the company's current sales taxes fit into the defined categories and will be assigned accordingly.
8. Open the Non-Stock Items (IN202000) form.
9. In the Inventory ID box, select DELIVERY. You will assign the appropriate tax category to this item, because
the delivery services are taxable and you need to change the preconfigured tax category for this item.
10.On the General tab (the Item Defaults section), in the Tax Category box, select TAXABLE.
This tax category will be inserted by default into the lines of documents in which this item is specified;
however, you can override it.
11.On the form toolbar, click Save to save your changes.

Step 2: Creating a Tax Zone

Do the following to create the tax zone for Denver:
1. Open the Tax Zones (TX206000) form.
2. On the form toolbar, click Add New Record, and create a tax zone with the following settings in the
Summary area:
• Tax Zone ID: DENVER
• Description: Denver tax zone
• Default Tax Category: TAXABLE
The specified tax category will be used by default for this tax zone in document lines in which an item is not
specified.
3. On the form toolbar, click Save to save your changes.
Taxes can then be created and assigned to this tax zone.

Tax Zones and Categories: To Create a Tax Category and Tax Zone for VAT

By performing the following implementation activity, you will review tax categories and their settings and learn
how to create a tax category and a tax zone for VAT.

Story
The SweetLife Fruits & Jams company provides advertising services that are subject to a 7% value-added tax
(VAT). While two tax categories have been already created in Acumatica ERP (TAXABLE and EXEMPT), no other tax
configuration has been performed.
You need to assign the TAXABLE tax category to the needed non-stock item (ADVERT). You also need to create a tax
zone associated with all VAT-registered vendors and customers in Canada. You will assign the TAXABLE category as
the default tax category of the tax zone.
To make it possible for SweetLife Fruits & Jams to process pending VAT, you need to create a tax category for this
type of VAT.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
 Implementing Taxes | 261

• On the Enable/Disable Features (CS100000) form, the VAT Reporting feature has been enabled.
• On the Tax Categories (TX205500) form, the TAXABLE and EXEMPT tax categories have been configured.
• On the Non-Stock Items (IN202000) form, the ADVERT item has been configured.

Process Overview
In this activity, you will first review the tax categories on the Tax Categories (TX205500) form, and then assign the
TAXABLE category to an item on the Non-Stock Items (IN202000) form. On the Tax Categories (TX205500) form, you
will create a tax category for pending VAT. Finally, you will create the needed tax zone on the Tax Zones (TX206000)
form, assigning the appropriate default tax category to it.

System Preparation
Before you begin to work with tax categories and tax zones, do the following:
1. As a prerequisite activity, configure a tax report as described in Tax Report Configuration: To Create a Tax
Report for VAT.
2. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded.
3. To sign in as an implementation consultant, use the gibbs username and the 123 password.

Step 1: Reviewing Tax Categories and Assigning a Tax Category to a Non-Stock Item
To review the existing tax categories and assign a tax category to a non-stock item, do the following:
1. Open the Tax Categories (TX2055PL) form.
2. Review the existing tax categories—EXEMPT and TAXABLE.
3. Open the Non-Stock Items (IN202000) form.
4. In the Inventory ID box, select ADVERT. You will assign the appropriate tax category to this item, because
the advertising services are taxable and you need to change the preconfigured tax category for this item.
5. On the General tab (the Item Defaults section), in the Tax Category box, select TAXABLE.
This tax category will be inserted by default into the lines of documents in which this item is specified;
however, you can override it.
6. On the form toolbar, click Save.

Step 2: Creating a Tax Category for Pending VAT

To create a tax category for pending VAT, do the following:
1. Open the Tax Categories (TX205500) form.
2. On the form toolbar, click Add New Record.
3. In the Summary area, specify the following settings for the new tax category:
• Tax Category ID: PENDING
• Description: Pending VAT
4. On the form toolbar, click Save to save your changes.
This category is empty because you have not added any taxes to it. You can then create a pending VAT and
add it to this category.
 Implementing Taxes | 262

Step 3: Creating a Tax Zone

To create a tax zone for VAT-registered customers and vendors in Canada, do the following:
1. Open the Tax Zones (TX206000) form.
2. On the form toolbar, click Add New Record, and create a tax zone with the following settings in the
Summary area:
• Tax Zone ID: CANADA
• Description: Canada tax zone
• Default Tax Category: TAXABLE
The specified tax category will be used by default for this tax zone in document lines in which an item is not
specified.
3. On the form toolbar, click Save to save your changes.
VAT can then be created and assigned to this tax zone.

Tax Zones and Categories: To Define a Tax-Exempt Category

In this activity, you will learn how to define a tax-exempt category in the system.

Story
Suppose that the SweetLife company is going to purchase services from vendors and provide services to
customers. All of these services are tax-exempt. Acting as an administrator, you need to define a tax category in
Acumatica ERP.

System Preparation
Before you start defining the credit terms, make sure that the company and its actual ledger has been created, as
described in Company Without Branches: To Configure a Company Without Branches and General Ledger: To Create
an Actual Ledger.

Step: Defining a Tax Category

To define a tax-exempt category, do the following:
1. Sign in to the company you have prepared with the admin username.
2. Open the Tax Categories (TX205500) form.
3. On the form toolbar, click New Record.
4. In the Summary area, specify the following settings:
• Tax Category ID: EXEMPT
• Description: Exempt Tax Category
5. On the form toolbar, click Save.
 Implementing Taxes | 263

Use Tax

The topics of this chapter describe how to configure a use tax in Acumatica ERP.

Use Taxes: General Information

A use tax is a type of a tax levied in the United States. If your company purchases tax-free goods (for example, from
a vendor that is not registered in the state of your purchase, so that your company does not pay sales tax), the
company must report the purchases and pay the use tax to the tax agency of its home state. The use tax is typically
levied at the same rate as the sales tax that would have been paid in the company's state. In Acumatica ERP, the
system calculates a use tax in vendor bills, AP adjustments, purchase orders, expense receipts and claims, and cash
disbursements.

Learning Objectives
From reading the topics in this chapter and completing the implementation activity, you will learn how to
configure a use tax that can be used in AP documents, purchase orders, expense receipts and claims, and cash
disbursements.

Applicable Scenarios
You configure a use tax to be used in the following cases:
• Your company bought taxable goods, but paid no sales tax
• Your company bought taxable goods and has paid less tax than the applicable sales tax

Configuration of Taxes
The entities that you have configured in the taxes subledger should be linked with the following entities, which you
create in other Acumatica ERP subledgers:
• Stock items and non-stock items: To calculate tax amounts in the documents in which you specify inventory
IDs, you should create stock items (for goods) and non-stock items (for services) and associate each item
with the appropriate tax category. The tax category defines the taxes that can be applied to this stock or
non-stock item.
• Vendor and customer accounts: You should create needed vendors in accounts payable and customers
in accounts receivable if they do not already exist. Depending on the geographical location of the sale or
purchase transaction, different taxes can be applied to the document. To define which taxes are applied in
the location of your vendor or customer, you should assign the appropriate tax zone to each new or existing
vendor and customer.
Once these entities are configured, the system will calculate tax amounts when a user enters a document in the
system. The system does this by applying the particular tax or taxes determined by the system according to the
location of the selected customer or vendor and the type of stock or non-stock item specified in the document.

Use Tax Settings

Once a user selects a vendor or location in a document on the Bills and Adjustments (AP301000) form, the system
checks whether a tax zone is specified for the vendor on the Purchase Settings tab of the Vendors (AP303000)
form. If so, the system inserts in the document the applicable taxes, based on the vendor details and the tax
 Implementing Taxes | 264

categories specified in the document lines. You can review the tax amounts computed by the system on the Taxes
tab of the Bills and Adjustments form.
For a use tax, the Exclude from Tax-on-Tax Calculation check box must be selected on the Tax Settings tab of the
Taxes (TX205000) form because a use tax should be excluded from the taxable amount for calculating the second-
level taxes. For details, see Tax Calculation Methods: General Information.

Defining the Minimum and Maximum Taxable Amounts

For each row of the table on the Tax Schedule tab of the Taxes (TX205000) form, you can define the minimum and
maximum taxable amount for each tax in the corresponding columns.
• If a minimum amount is specified in the Min. Taxable Amount column, the tax rate of 0 will be applied to
amounts less than the specified minimum.
• If a maximum amount is specified in the Max. Taxable Amount column, the taxable amount will be capped
to the maximum specified. For example, a tax has the following settings:
• Tax Rate: 5.00
• Max. Taxable Amount: 100.00
If a user creates a document with the amount of $200, the tax amount applied to this document will be $5.
In all other cases, the tax is calculated based on the original taxable amount.

Use Taxes: Configuration Prerequisites

Before starting the configuration of a use tax, you must be sure that the system has been configured properly and
that all required entities have been created, as described in the following sections.

Configuring the System

Before you configure a use tax, you need to make sure that the following configuration tasks have been performed
in the system:
• On the Chart of Accounts (GL202500) form, the GL account that you will use for tax reporting purposes have
been added. The following table shows the account that should be configured in the U100 dataset.

Account Account Class Type Description Control Account

Module

65200 EXTAX Expense Use Tax  

• On the Vendors (AP303000) form, a vendor set up as a tax agency has been configured. For details, see Tax
Agency: To Set Up a Tax Agency for Sales Taxes.
• On the Tax Categories (TX205500) form, the TAXABLE category has been created.

Use Taxes: Implementation Activity

By performing the following implementation activity, you will learn how to configure a use tax that will be applied
to AP documents.
 Implementing Taxes | 265

Story
Suppose that the SQUEEZO vendor, from which the SweetLife Fruits & Jams company buys juicers, does not charge
the sales tax from its buyers that are located outside of New Jersey, where this vendor is located. Therefore, all the
purchases made from this vendor are subject to the use tax of the New York state, where SweetLife is located.
The chief accountant of the SweetLife company needs to update the tax agency settings, tax report, and the vendor
to be able to pay the use tax to the NY tax agency.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• On the Tax Categories (TX205500) form, the TAXABLE tax category has been configured.
• On the Vendors (AP303000) form, the SQUEEZO vendor account has been configured and the NYTAXDEP
vendor has been configured as a tax agency.
• On the Reporting Settings (TX205100) form, a tax report has been configured for the NYTAXDEP tax agency.

Process Overview
In this activity, you will start the configuration of a use tax by creating a tax zone on the Tax Zones (TX206000) form.
On the Vendors (AP303000) form, you will update the settings of the needed vendor and those of the tax agency. On
the Reporting Settings (TX205100) form, you will modify the tax report. Finally, you will create a use tax on the Taxes
(TX205000) form.

System Preparation
Before you begin to configure the use tax, do the following:
1. Launch the Acumatica ERP website.
2. Sign in to a company with the U100 dataset preloaded. To sign in as an accountant, use the following
credentials:
• Username: johnson
• Password: 123

Step 1: Creating a Tax Zone

To create a tax zone, proceed as follows:
1. Open the Tax Zones (TX206000) form.

To open the form for creating a new record, type the form ID in the Search box, and on the
Search form, point at the form title and click New right of the title.

2. On the form toolbar, click Add New Record, and specify the following settings in the Summary area:
• Tax Zone ID: NYUSE
• Description: Use tax zone
• Default Tax Category: TAXABLE
Aer you assign this zone to a particular vendor, taxable items purchased from this vendor will be subject to
use tax.
3. On the form toolbar, click Save to save the created tax zone.
 Implementing Taxes | 266

Step 2: Updating the Settings of the Tax Agency and the Vendor
To update the settings of the tax agency and the vendor for whose documents you want to apply the use tax,
proceed as follows:
1. Open the Vendors (AP303000) form.
2. In the Vendor ID box, select NYTAXDEP.
3. On the Tax Agency tab, select the Update Closed Tax Periods check box.
4. On the form toolbar, click Save to save your changes.
5. In the Vendor ID box, select SQUEEZO.
6. On the Purchase Settings tab, in the Tax Zone box, select NYUSE.
7. On the form toolbar, click Save to save your changes.

Step 3: Updating the Tax Report

To update the tax report, proceed as follows:
1. Open the Reporting Settings (TX205100) form.
2. In the Tax Agency ID box, select NYTAXDEP.
3. On the Report Lines tab, click Add Row on the table toolbar, and specify the following settings:
• Description: Purchases Subject to Use Tax
• Update With: Taxable Amount
• Update Rule: +Output-Input
This report line will accumulate the total of purchases that are subject to a use tax.
4. On the form toolbar, click Save to save your changes.
5. On the Reporting Groups tab, click Add Row on the table toolbar, and specify the following settings:
• Name: Use tax
• Group Type: Output
The use tax is paid to the tax agency; therefore, it is of the Output type.
6. On the form toolbar, click Save to save your changes.
7. Make sure that the Use tax group is selected in the table, and on the table toolbar, click Group Details. The
Reporting Groups (TX205200) form opens.
8. On this form, add the following rows to the table:
• Report Line: 2 - Tax Total
• Report Line: 6 - Purchases Subject to Use Tax
9. On the form toolbar, click Save to save your changes.

Step 4: Creating a Use Tax

To create a use tax, proceed as follows:
1. Open the Taxes (TX205000) form.
2. On the form toolbar, click Add New Record, and specify the following settings:
• Tax ID: NYUSETAX
• Description: New York use tax
 Implementing Taxes | 267

• Tax Type: Use

• Calculation Rule: Exclusive Document-Level
Before configuring a use tax in the production environment, you should know exactly which calculation
method should be applied in this box.
• Cash Discount: Does Not Affect Taxable Amount
• Exclude from Tax-on-Tax Calculation: Selected
This check box is selected by default, because the use tax is a first-level tax and should be excluded from
tax-on-tax calculation.
• Tax Agency: NYTAXDEP
3. On the Tax Schedule tab, click Add Row on the table toolbar, and specify the following settings:
• Start Date: 1/1/1900 (inserted by default)
• Tax Rate: 8.875
• Reporting Group: Use tax
4. On the Categories tab, click Add Row, and select TAXABLE in the Tax Category column.
5. On the Zones tab, click Add Row, and select NYUSE in the Tax Zone ID column.
6. On the GL Accounts tab, make sure that the Use Tax Expense Account check box is selected, and select
65200 - Use Tax in the Tax Expense Account box.
7. On the form toolbar, click Save to save your changes.

Value-Added Taxes

The topics of this chapter describe how to configure a value-added tax (VAT) in Acumatica ERP.

Value-Added Taxes: General Information

A value-added tax (VAT) or goods and services tax (GST) is a consumption tax that is used in the European Union
(EU), Canada, Australia, and Japan. The tax is paid at each stage of production and distribution. Your organization,
as the vendor of the goods, collects this tax from customers as part of the price and pays to the tax agency only the
difference between the collected amount and the amount paid to your organization's vendors.
In Acumatica ERP, value-added taxes are used if the VAT Reporting feature is enabled on the Enable/Disable Features
(CS100000) form. With this feature enabled, you can configure VAT-type taxes to automatically calculate them on
bills and invoices and report them to a tax agency. The system calculates a VAT in vendor bills and adjustments in
accounts payable, and in customer invoices and memos in accounts receivable. In different countries, this tax is
used along with different modifications of it.

Learning Objectives
In this chapter, you will learn how to configure a value-added tax.

Applicable Scenarios
You configure value-added taxes in the following cases:
• Your organization must process AR and AP documents with VATs
• Your organization needs to report VAT-exempt sales and purchases
 Implementing Taxes | 268

Configuration of Taxes
The entities that you have configured in the taxes subledger should be linked with the following entities, which you
create in other Acumatica ERP subledgers:
• Stock items and non-stock items: To calculate tax amounts in the documents in which you specify inventory
IDs, you should create stock items (for goods) and non-stock items (for services) and associate each item
with the appropriate tax category. The tax category defines the taxes that can be applied to this stock or
non-stock item.
• Vendor and customer accounts: You should create needed vendors in accounts payable and customers
in accounts receivable if they do not already exist. Depending on the geographical location of the sale or
purchase transaction, different taxes can be applied to the document. To define which taxes are applied in
the location of your vendor or customer, you should assign the appropriate tax zone to each new or existing
vendor and customer.
Once these entities are configured, the system will calculate tax amounts when a user enters a document in the
system. The system does this by applying the particular tax or taxes determined by the system according to the
location of the selected customer or vendor and the type of stock or non-stock item specified in the document.

General VAT
Taxes of the general VAT type are paid at each stage of the production of goods or at each stage in the distribution
process. Your organization adds VAT amounts to the sales prices of goods and collects the tax from the customers;
this tax amount is called output tax. On the other hand, your organization pays the vendor the VAT tax amounts on
all related supplies and services; this tax amount is called input tax. The tax amount that your organization should
pay to the tax agency is calculated as the difference between the output amount and the input amount.
You create a VAT of the general type on the Taxes (TX205000) form. While creating a tax, you have to specify a rate to
be used for the input tax and a rate to be used for the output tax. The rates can be the same or different.

Exempt VAT
An exempt VAT is applied for certain goods and services (such as medical care, educational services, and postal
services). If the services provided by your organization are not subject to VAT, your organization does not collect
the tax on sales. As a rule, the taxes charged by vendors for related supplies are not claimable by your organization.
However, in most cases, your organization should report the amounts of sales that are exempt from VAT.
When you create a VAT of the exempt type, you have to specify zero rates for the input tax and output tax, so that
tax amounts will not be calculated in the documents, but taxable amounts will be accumulated in the tax report.

Defining the Minimum and Maximum Taxable Amounts

For each row of the table on the Tax Schedule tab of the Taxes (TX205000) form, you can define the minimum and
maximum taxable amount for each tax in the corresponding columns.
• If a minimum amount is specified in the Min. Taxable Amount column, the tax rate of 0 will be applied to
amounts less than the specified minimum.
• If a maximum amount is specified in the Max. Taxable Amount column, the taxable amount will be capped
to the maximum specified. For example, a tax has the following settings:
• Tax Rate: 5.00
• Max. Taxable Amount: 100.00
If a user creates a document with the amount of $200, the tax amount applied to this document will be $5.
In all other cases, the tax is calculated based on the original taxable amount.
 Implementing Taxes | 269

VAT Taxable Total in Documents

You can control how the VAT taxable amount will be displayed in the summary area of the document (in the VAT
Taxable Total box) when more than one value-added tax is applied to the document.
In multiline documents (those that contain multiple sales or purchase entries), different taxes can be applied to
each line of the document. The system calculates the VAT taxable amount for each line according to the settings of
the applicable tax. Each taxable amount can be added by the system to the VAT Taxable Total box, if the Include in
Taxable Total check box is selected on the Taxes (TX205000) form for the corresponding tax.
If two or more taxes are applied to the same line, all the taxable amounts should not be included in the document's
VAT taxable total. Thus, if multiple taxes should be applied to your multiline documents, we recommend that you
clear the Include in Taxable Total check box in the settings of one of the corresponding taxes, so the VAT Taxable
Total box will be empty.

We do not recommend clearing the Include in Taxable Total check box for all taxes applied to a
document.

Those manipulations do not affect the calculation of tax amounts.

Value-Added Taxes: Configuration Prerequisites

Before starting to create a value-added tax, you should be sure that the needed feature has been enabled, settings
have been specified, and entities have been created, as described in the following sections.

Enabling the Needed Feature

On the Enable/Disable Features (CS100000) form, the VAT Reporting feature must be enabled.

Configuring the System

You need to make sure the following tasks have been performed in Acumatica ERP before you begin to create a
value-added tax:
• On the Chart of Accounts (GL202500) form, all GL accounts that you will use for tax reporting purposes have
been added.
• On the Vendors (AP303000) form, a vendor set up as a tax agency has been configured. For details, see Tax
Agency: To Set Up a Tax Agency for VAT.
• On the Tax Categories (TX205500) form, the TAXABLE category has been created.
• On the Tax Zones (TX206000) form, the CANADA tax zone has been created. For details, see Tax Zones and
Categories: To Create a Tax Category and Tax Zone for VAT.
• On the Reporting Settings (TX205100) form, a reporting group of the Output type and a reporting group of the
Input type have been configured.

Value-Added Taxes: To Create a General VAT and Exempt VAT

By performing this implementation activity, you will learn how to configure a general VAT will be used in AR and AP
documents, and an exempt VAT.
 Implementing Taxes | 270

Story
The SweetLife Fruits & Jams company provides services to customers and buys services from vendors in Canada,
which are subject to a 7% VAT. Acting as an implementation consultant, you need to configure the VAT, assign it to
the TAXABLE category and the CANADA tax zone, and specify the tax calculation method for this tax.
You also need to define a 0% exempt VAT, because you have to report exempt VAT in your tax report. This tax needs
to be defined because you want to include exempt sales and purchases in your tax report. (Tax reports do not
include documents to which no taxes have been applied.) That is why you need to create a separate tax code and
create two taxes with a rate of 0%: one of the Output type, assigned to the Exempt Sales group; and the other of the
Input type, assigned to the Exempt Purchases group, which indicates that this sale or purchase should be reported
as tax exempt. You can then apply this tax to the appropriate invoices and bills so that they are included in the tax
report.

Configuration Overview
In the U100 dataset, the following configuration tasks have been performed to prepare the system for this activity
to be performed:
• On the Enable/Disable Features (CS100000) form, the VAT Reporting feature has been enabled.
• On the Tax Categories (TX205500) form, the TAXABLE and EXEMPT tax categories have been created.
• On the Tax Zones (TX206000) form, the CANADA tax zone has been created.

Process Overview
In this activity, on the Taxes (TX205000) form, you will create a VAT tax and specify its tax rate, tax category, and tax
zone. On the same form, you will also create a 0% VAT to represent exempt sales and purchases in the tax report.
On the Tax Zones (TX206000) form, you will then review the list of taxes assigned to the tax zone, and on the Tax
Categories (TX205500) form, you will review the taxes assigned to each tax category and remove the sales taxes
assigned to each category.

Before configuring a value-added tax in the production environment, you should know exactly which
calculation method should be applied in the Calculation Rule box of the Taxes (TX205000) form (the
Tax Settings tab).

System Preparation
To prepare the system, do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. You should
sign in as an implementation consultant by using the gibbs username and the 123 password.
2. On the Company and Branch Selection menu, on the top pane of the Acumatica ERP screen, select the
SweetLife Head Office and Wholesale Center branch.
3. As a prerequisite activity, in the company to which you are signed in, be sure you have configured the VATTAX
tax agency as described in Tax Agency: To Set Up a Tax Agency for VAT.
4. As a prerequisite activity, in the company to which you are signed in, be sure you have configured a tax
report as described in Tax Report Configuration: To Create a Tax Report for VAT.

Step 1: Creating a General VAT

To create a value-added tax, do the following:
 Implementing Taxes | 271

1. Open the Taxes (TX205000) form.

2. On the form toolbar, click Add New Record, and specify the following settings on the Tax Settings tab:
• Tax ID: VAT
• Description: VAT 7%
• Tax Type: VAT
• Include in VAT Taxable Total: Selected
When this check box is selected, the taxable amount to which the tax applies is included in the VAT
Taxable Total for the document on the applicable form.
• Calculation Rule: Exclusive Line-Level
This setting means that the tax amount is calculated on each line, and then the calculated tax amounts
are totaled.
• Cash Discount: Does Not Affect Taxable Amount
This setting means that the taxable amount is not decreased by any cash discount.
• Tax Agency: VATTAX
3. On the Tax Schedule tab, click Add Row on the table toolbar, and specify the following settings:
• Start Date: 1/1/1900 (inserted by default)
• Tax Rate: 7
• Reporting Group: Taxable Purchases
4. Click Add Row again and specify the following settings for the second row:
• Start Date: 1/1/1900 (inserted by default)
• Tax Rate: 7
• Reporting Group: Taxable Sales
In this training, you are going to use the same tax ID, VAT, for both input and output taxes. That is why you
have added two lines in the table on this tab: The first line specifies the input tax rate and is assigned to the
reporting group updated by vendors' bills; the second line specifies the output tax rate and is assigned to
the reporting group updated by invoices issued to customers.
5. On the form toolbar, click Save.
6. On the Categories tab, click Add Row on the table toolbar, and select TAXABLE in the Tax Category column.
7. On the Zones tab, click Add Row on the table toolbar, and select CANADA in the Tax Zone ID column.
The created tax will be applied to all taxable items sold to customers and purchased from vendors assigned
to the CANADA tax zone.
8. On the GL Accounts tab, review the GL accounts assigned to this sales tax.
The Tax Payable account is the liability account that accumulates the tax amounts to be paid to the tax
agency. The account is credited in the tax amount when taxable invoices are released. The Tax Claimable
account is an asset account that accumulates the tax amounts to be claimed from the tax agency. The
account is debited in the tax amount when taxable bills are released.
9. On the form toolbar, click Save.

Step 2: Creating a 0% Exempt VAT

To create a 0% (exempt) VAT, do the following:
1. While you are still on the Taxes (TX205000) form, click Add New Record on the form toolbar, and specify the
following settings on the Tax Settings tab:
• Tax ID: VATEXEMPT
• Description: VAT Exempt
 Implementing Taxes | 272

• Tax Type: VAT

• Include in VAT Exempt Total: Selected
When this check box is selected, the Tax Rate on the Tax Schedule tab becomes equal to 0 and is
unavailable. Also, the taxable amount to which the tax applies is included in the VAT Exempt Total for
the document on the applicable form.
• Calculation Rule: Exclusive Line-Level
• Cash Discount: Does Not Affect Taxable Amount
• Tax Agency: VATTAX
2. On the Tax Schedule tab, click Add Row on the table toolbar, and specify the following settings:
• Start Date: 1/1/1900 (inserted by default)
• Tax Rate: 0 (inserted by default)
Because you have selected the Include in VAT Exempt Total check box, the Tax Rate is automatically set
to 0.00 and is not available.
• Reporting Group: Exempt Purchases
3. Click Add Row again and specify the following settings for the second row:
• Start Date: 1/1/1900 (inserted by default)
• Tax Rate: 0 (inserted by default)
• Reporting Group: Exempt Sales
4. On the Categories tab, click Add Row on the table toolbar, and select EXEMPT in the Tax Category column.
5. On the Zones tab, click Add Row on the table toolbar, and select CANADA in the Tax Zone ID column.
6. On the form toolbar, click Save.

Step 3: Reviewing the List of Taxes and Updating the Tax Categories
To review the list of taxes now available for the CANADA tax zone, do the following:
1. Open the Tax Zones (TX206000) form.
2. In the Tax Zone ID box, select CANADA; review the list of taxes that currently belong to this zone. Notice that
the list includes both VAT and VATEXEMPT.
3. Open the Tax Categories (TX205500) form.
4. In the Tax Category ID box, select TAXABLE, and review the taxes in the table.
5. In the table, remove NYSTATETAX from the category.
6. On the form toolbar, click Save.
7. In the Tax Category ID box, select EXEMPT, and review the taxes in the table.
8. In the table, remove NYNOTAX from the category.
9. On the form toolbar, click Save.

Value-Added Taxes: Partially Deductible VAT

In some countries, certain VAT-registered companies are allowed to deduct a part of the tax paid to a vendor on
purchases from their own VAT liability to the government. This type of VAT is called a partially deductible VAT. The
deducted amount is claimed from the agency, while the non-deductible tax amount is recorded as expenses.
To partially deduct the tax amount, you need to configure a VAT of the partially deductible type. To configure the
Partially Deductible VAT, on the Taxes (TX205000) form, you select the VAT tax type and the Partially Deductible VAT
check box. Aer that, the appropriate boxes required for configuring a partially deductible VAT appear on the form.
 Implementing Taxes | 273

You specify the deductible rate in the Deductible Tax Rate column, so that in a document, the tax amount to be
paid to a vendor is calculated based on the tax rate, and then this amount is multiplied by the deductible tax rate to
get the amount that can be claimed from the tax agency.

Value-Added Taxes: To Create a Partially Deductible VAT

By performing this implementation activity, you will learn how to configure a partially deductible VAT.

Story
Suppose that SweetLife Fruits & Jams purchases goods to be used in the company's office. The company is allowed
to deduct 40% of the taxes paid on these kinds of purchases from the tax amount paid to the tax authority. Acting
as an implementation consultant, you need to configure a VAT of the deductible type to partially deduct the tax
amount.

Configuration Overview
In the U100 dataset, the following configuration tasks have been performed to prepare the system for this activity
to be performed:
• On the Enable/Disable Features (CS100000) form, the VAT Reporting feature has been enabled.

Process Overview
In this activity, on the Tax Categories (TX205500) form, you will create a tax category for a deductible VAT. On the
Taxes (TX205000) form, you will create a deductible VAT and specify its tax rate, tax category and tax zone.

System Preparation
To prepare the system, do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. You should
sign in as an implementation consultant by using the gibbs username and the 123 password.
2. On the Company and Branch Selection menu, on the top pane of the Acumatica ERP screen, select the
SweetLife Head Office and Wholesale Center branch.
3. As a prerequisite activity, in the company to which you are signed in, be sure you have configured a tax
agency and a tax report as described in Tax Report Configuration: To Create a Tax Report for VAT Variations.
4. As a prerequisite activity, be sure that you have created the CANADA tax zone on the Tax Zones (TX206000)
form as described in Tax Zones and Categories: To Create a Tax Category and Tax Zone for VAT.
5. As a prerequisite activity, be sure that you have configured a tax report on the Reporting Settings (TX205100)
form and have added reporting groups to the tax report. For details, see Tax Report Configuration: To Create
a Tax Report for VAT Variations.

Step 1: Creating a Tax Category for a Deductible VAT

To create a tax category for a partially deductible VAT, do the following:
1. Open the Tax Categories (TX205500) form.
2. On the form toolbar, click Add New Record.
3. In the Summary area, specify the following settings:
• Tax Category ID: DEDUCT
 Implementing Taxes | 274

• Description: Purchases subject to deductions

4. On the form toolbar, click Save.

Step 2: Creating a Partially Deductible VAT

To create a partially deductible VAT, do the following:
1. Open the Taxes (TX205000) form.
2. On the form toolbar, click Add New Record, and specify the following settings on the Tax Settings tab:
• Tax ID: DVAT
• Description: Deductible VAT
• Tax Type: VAT
• Partially Deductible VAT: Selected
• Include in VAT Taxable Total: Selected
• Calculation Rule: Exclusive Line-Level
• Cash Discount: Does Not Affect Taxable Amount
• Tax Agency: VATVAR
3. On the Tax Schedule tab, click Add Row on the table toolbar, and specify the following settings:
• Start Date: 1/1/1900 (inserted by default)
• Tax Rate: 15
• Deductible Tax Rate: 40
This setting defines the part of the tax amount (40%) that the company is allowed to deduct from its tax
liability. The rest of the tax amount (60%) counts toward the company's expenses.
• Reporting Group: Deductible
4. Open the GL Accounts tab and review the accounts.
The Use Tax Expense Account check box, which is selected by default, specifies that the non-deductible
part of the tax amount will be posted to the Tax Expense account.

To post the non-deductible part of the tax amount to the expense account specified in the
taxable line, you would clear the Use Tax Expense Account check box.

5. On the Categories tab, click Add Row on the table toolbar, and select DEDUCT in the Tax Category column.
6. On the Zones tab, click Add Row on the table toolbar, and select CANADA in the Tax Zone ID column.
7. On the form toolbar, click Save.

Value-Added Taxes: Reverse VAT

A reverse VAT is a type of value-added tax used in some countries of the European Union. The reverse VAT has been
implemented as a simplification measure for companies that supply goods or services to other EU countries. With
this tax applied, these companies avoid the need to register in the countries to which they supply the goods or
services. Thus, if a vendor normally must report the VAT due on their supplies to the tax authorities, so when this
type of VAT applies, the liability of reporting VAT is reversed and goes to the customer. The customer in this case
acts as both the vendor and the customer. The customer credits the tax payable account in the needed output tax
amount on purchases from abroad, and at the same time debits a required account with the amount of input tax to
be paid under the standard tax rules.
 Implementing Taxes | 275

Thus, to satisfy the legal requirements related to the reverse-charged VAT, in Acumatica ERP, you configure this
type of VAT by creating two tax codes of the following types on the Taxes (TX205000) form:
• A reverse VAT: For this tax, you select the Reverse VAT check box and specify a reporting group of the Output
type. This tax should be paid to the agency.
• A general-type VAT: For this tax, you specify a reporting group of the Input type, and specify the same rate as
the reverse VAT has. This tax can be claimed from the tax agency (if it is allowed).
The system calculates these taxes on the same bills so that the tax amounts will be rolled back and will not update
the document total.

You must consider the legal requirements of your country in order to decide how you must report a
reverse VAT and configure the tax report that meets these requirements.

Value-Added Taxes: To Create a Reverse VAT

By performing this implementation activity, you will learn how to configure a reverse VAT and a general VAT that
will offset each other.

Story
Suppose that SweetLife Fruits & Jams need to process AP bills to which a reverse VAT applies. The reverse VAT will
be paid to the tax agency and the general VAT can be claimed from the tax agency. Acting as an implementation
consultant, you need to create the following taxes:
• A reverse VAT included in a reporting group of the Output type. This tax should be paid to the agency.
• A general VAT included in a reporting group of the Input type. This tax can be claimed from the tax agency.
This tax should have the same tax rate as the reverse VAT.

Configuration Overview
In the U100 dataset, the following configuration tasks have been performed to prepare the system for this activity
to be performed:
• On the Enable/Disable Features (CS100000) form, the VAT Reporting feature has been enabled.

Process Overview
In this activity, on the Tax Categories (TX205500) form, you will create a tax category for a reverse VAT. On the Taxes
(TX205000) form, you will create a reverse VAT and specify its tax rate, tax category and tax zone. You will then
create a general VAT with the same tax rate as the reverse VAT.

System Preparation
To prepare the system, do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. You should
sign in as an implementation consultant by using the gibbs username and the 123 password.
2. On the Company and Branch Selection menu, on the top pane of the Acumatica ERP screen, select the
SweetLife Head Office and Wholesale Center branch.
3. As a prerequisite activity, be sure that you have created the CANADA tax zone on the Tax Zones (TX206000)
form as described in Tax Zones and Categories: To Create a Tax Category and Tax Zone for VAT.
 Implementing Taxes | 276

4. As a prerequisite activity, in the company to which you are signed in, be sure you have configured a tax
agency and a tax report as described in Tax Report Configuration: To Create a Tax Report for VAT Variations.

Step 1: Creating a Tax Category for a Reverse VAT

To create a tax category for a reverse VAT, do the following:
1. Open the Tax Categories (TX205500) form.
2. On the form toolbar, click Add New Record.
3. In the Summary area, specify the following settings:
• Tax Category ID: REVERSE
• Description: Reverse VAT
4. On the form toolbar, click Save.

Step 2: Creating a Reverse VAT

To create a reverse VAT, do the following:
1. Open the Taxes (TX205000) form.
2. On the form toolbar, click Add New Record, and specify the following settings on the Tax Settings tab:
• Tax ID: REVVAT
• Description: Reverse VAT
• Tax Type: VAT
• Reverse VAT: Selected
• Include in VAT Taxable Total: Selected
• Calculation Rule: Exclusive Line-Level
• Cash Discount: Does Not Affect Taxable Amount
• Tax Agency: VATVAR
3. On the Tax Schedule tab, click Add Row on the table toolbar, and specify the following settings:
• Start Date: 1/1/1900 (inserted by default)
• Tax Rate: 7
• Reporting Group: Reverse
4. On the Categories tab, click Add Row on the table toolbar, and select REVERSE in the Tax Category column.
5. On the Zones tab, click Add Row on the table toolbar, and select CANADA in the Tax Zone ID column.
6. On the form toolbar, click Save.

Step 3: Creating a General VAT

To create a general VAT that will offset the reverse VAT, do the following:
1. While you are still on the Taxes (TX205000) form, click Add New Record on the form toolbar.
2. On the Tax Settings tab, specify the following settings:
• Tax ID: GVAT
• Description: General VAT
• Tax Type: VAT
• Include in VAT Taxable Total: Selected
• Calculation Rule: Exclusive Line-Level
 Implementing Taxes | 277

• Cash Discount: Does Not Affect Taxable Amount

• Tax Agency: VATVAR
3. On the Tax Schedule tab, click Add Row on the table toolbar, and specify the following settings:
• Start Date: 1/1/1900 (inserted by default)
• Tax Rate: 7
• Reporting Group: Standard-Rated Acquisitions
4. On the Categories tab, click Add Row on the table toolbar, and select REVERSE in the Tax Category column.
5. On the Zones tab, click Add Row on the table toolbar, and select CANADA in the Tax Zone ID column.
6. On the form toolbar, click Save.

Value-Added Taxes: Pending VAT

A pending VAT (sometimes called a suspended VAT) is applied to the documents whose tax amounts should be
recognized later than the documents were released. Once a document subject to the pending VAT is released,
the system records its tax amount to an intermediate account (such as the Pending Tax Payable account or the
Pending Tax Claimable account), where the tax amount is kept until you initiate the process of recognizing the
taxes. Suspended tax information is not included into the tax report until the taxes are recognized.
In Acumatica ERP, you can configure the tax agency so that pending VATs will be recognized using one of the
following VAT recognition methods:
• On Documents: With this recognition method, you can recognize the total tax amount of a document on
any needed date without waiting for payment applications. That is, with this method, once you release the
invoice, it immediately becomes available for the recognition of pending VAT amounts.
• On Payments: With this recognition method, the tax amount is recognized only when the payment is
applied to a document. The tax amount can be recognized fully or partially, depending on whether the
applied payment fully or partially covers the document amount. If applicable, the partial tax amount to be
recognized is calculated proportionally to the payment applied to a document.
By the recognition process, the system moves the tax amounts from the pending account to the actual Tax Payable
or Tax Claimable account, and includes the tax information in the tax report prepared for the corresponding period.
You initiate the tax recognition process by using the Recognize Input VAT (TX503500) form or the Recognize Output
VAT (TX503000) form.

System Settings for Pending VAT

To configure a pending VAT, on the Taxes (TX205000) form, you select VAT in the Tax Type box and select the
Pending VAT check box.

You can configure VAT of the Pending type and the Reverse type at the same time. While configuring
that type of the tax, you need to select the Pending VAT check box and the Reverse VAT check box on
the Taxes form.

Value-Added Taxes: To Create a Pending VAT

By performing this implementation activity, you will learn how to configure a pending VAT recognized on payments.
 Implementing Taxes | 278

Story
Suppose that SweetLife Fruits & Jams provides services to customers and the VAT amounts of invoice payments
need to be recognized on payment dates. Acting as an implementation consultant, you need to update the settings
of the tax agency and create a pending VAT of the Output type.

Configuration Overview
In the U100 dataset, the following configuration tasks have been performed to prepare the system for this activity
to be performed:
• On the Enable/Disable Features (CS100000) form, the VAT Reporting feature has been enabled.

Process Overview
In this activity, on the Chart of Accounts (GL202500) form, you will create two accounts that will be used in the
pending VAT settings. On the Vendors (AP303000) form, you will update the settings of the tax agency to make it
possible to recognize pending VAT on payments. Finally, on the Taxes (TX205000) form, you will create a pending
VAT and specify the accounts you created in its settings.

System Preparation
To prepare the system, do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. You should
sign in as an implementation consultant by using the gibbs username and the 123 password.
2. On the Company and Branch Selection menu, on the top pane of the Acumatica ERP screen, select the
SweetLife Head Office and Wholesale Center branch.
3. As a prerequisite activity, in the company to which you are signed in, be sure you have configured a tax
agency and a tax report as described in Tax Report Configuration: To Create a Tax Report for VAT Variations.
4. As a prerequisite activity, be sure that you have created the CANADA tax zone on the Tax Zones (TX206000)
form as described in Tax Zones and Categories: To Create a Tax Category and Tax Zone for VAT.
5. As a prerequisite activity, be sure that you have created the PENDING tax category on the Tax Categories
(TX205500) form as described in Tax Zones and Categories: To Create a Tax Category and Tax Zone for VAT.
6. As a prerequisite activity, be sure that you have configured a tax report on the Reporting Settings (TX205100)
form and reporting groups for the tax report on the Reporting Groups (TX205200) form. For details, see Tax
Report Configuration: To Create a Tax Report for VAT Variations.

Step 1: Creating the Needed GL Accounts

To create the Pending Tax Payable and Pending Tax Claimable accounts, do the following:
1. Open the Chart of Accounts (GL202500) form.
2. On the form toolbar, click Add Row and specify the following settings for the new row:
• Account: 24200
• Account Class: TAXESPAY
• Type: Liability
• Description: Pending Tax Payable
This account will be used for accumulating the amounts of output VAT pending recognition.
3. Click Add Row again and specify the following settings for another row:
 Implementing Taxes | 279

• Account: 24300
• Account Class: TAXESPAY
• Type: Liability
• Description: Pending Tax Claimable
This account will be used for accumulating the amounts of input VAT pending recognition.
4. On the form toolbar, click Save.

Step 2: Updating the Tax Agency Settings

To update the tax agency settings, do the following:
1. Open the Vendors (AP303000) form.
2. In the Vendor ID box, select VATVAR.
3. On the Tax Agency tab, specify the following settings:
• VAT Recognition Method: On Payments
This setting means that the tax amounts will be recognized based on the payments applied to
documents.
• Output Tax Entry Ref. Nbr.: Payment Ref. Nbr.
This setting means that the reference numbers of the payments will be used as the reference numbers of
the documents subject to pending output VAT included in a tax report.
4. On the form toolbar, click Save.

Step 3: Creating a Pending VAT

To create a pending VAT, do the following:
1. Open the Taxes (TX205000) form.
2. On the form toolbar, click Add New Record, and specify the following settings on the Tax Settings tab:
• Tax ID: PVAT
• Description: Pending VAT
• Tax Type: VAT
• Pending VAT: Selected
• Include in VAT Taxable Total: Selected
• Calculation Rule: Exclusive Line-Level
• Cash Discount: Does Not Affect Taxable Amount
• Tax Agency: VATVAR
3. On the Tax Schedule tab, click Add Row on the table toolbar, and specify the following settings:
• Start Date: 1/1/1900 (inserted by default)
• Tax Rate: 7
• Reporting Group: Pending (Output)
4. On the Categories tab, click Add Row on the table toolbar, and select PENDING in the Tax Category column.
5. On the Zones tab, click Add Row on the table toolbar, and select CANADA in the Tax Zone ID column.
6. On the GL Accounts tab, specify the following settings:
• Pending Tax Payable Account: 24200 (Pending Tax Payable)
This account will be credited in the amount of the pending output VAT that is imposed on taxable sales.
• Pending Tax Claimable Account: 24300 (Pending Tax Claimable)
 Implementing Taxes | 280

This account will be debited in the amount of the pending input VAT that is imposed on taxable
purchases.
7. On the form toolbar, click Save.

Value-Added Taxes: Inclusive Output and Input VATs at the Document Level

You can create AR and AP documents in which the total inclusive tax will be extracted from the document amount
but not totaled from the taxes calculated for the document lines.

Besides VAT, this type of tax can be applied to sales taxes.

The system calculates and rounds inclusive tax amounts based on document amounts by using the following rules:
1. The amount of the document before taxes is calculated as follows:
• The line amounts of the document with the same applicable taxes are totaled (Line Amount -
Group and Document Discounts). If more than one tax is applicable to a document, the system
groups the document lines by the rates of the applied taxes.
• The taxable amount is extracted from the sum of the document line amounts. The result is not rounded.
2. The tax amount based on the unrounded amount before taxes is calculated. The result is then rounded to
the decimal precision of the currency specified on the Currencies (CM202000) form.
3. The exact amount before taxes is calculated by the rounded tax amount being subtracted from the sum of
the document line amounts.

To prepare journal entries posted to GL on release of a document with inclusive VAT at the document level, the
system still calculates line-level taxes for each line to get the amounts before taxes that are posted to the revenue
or expense account specified in the lines. Because the document-level tax posted to the tax payable account may
differ from the total of tax amount of each line, to balance the transaction the system posts the difference to a
special gain and loss account, which is specified on the Tax Preferences (TX103000) form.

Usage Example
The example below illustrates how the system calculates the amount before taxes and the tax amount for each line.

Table: Tax Calculation by Line

Item Line Amount Tax Rate Line Tax Amount Line Amount Be-
(rounded) fore Taxes to Be
Posted to the Rev-
enue or Expense
Account

Item 1 105.55 19% 105.55 / 1.19 * 0.19 = 105.55 – 16.85 =

16.85 88.70

Item 2 112.99 19% 112.99 / 1.19 * 0.19 = 112.99 – 18.04 =

18.04 94.95

Item 3 87.70 19% 87.70 / 1.19 * 0.19 = 87.70 – 14.00 =

14.00 73.70

The system has calculated these amounts as follows:

 Implementing Taxes | 281

• Line amount before taxes:

• Line 1: 105.55 / 1.19 = 88.697479
• Line 2: 112.99 / 1.19 = 94.9495798
• Line 3: 87.70 / 1.19 = 73.697479
• Line tax amount:
• Line 1: 88.697479 * 0.19 = 16.852521 ~ 16.85
• Line 2: 94.9495798 * 0.19 = 18.0404202 ~ 18.04
• Line 3: 73.697479 * 0.19 = 14.002521 ~ 14.00
• Rounded line amount before taxes to be posted to the revenue or expense account:
• Line 1: 105.55 – 16.85 = 88.70
• Line 2: 112.99 – 18.04 = 94.95
• Line 3: 87.70 – 14.00 = 73.70
In the next step of calculations, the system calculates the document amount before taxes and the tax amount as
follows:
• Document amount before taxes:
• Sum of the line amounts: 105.55 + 112.99 + 87.70 = 306.24
• Amount before taxes: 306.24 / 1.19 = 257.344538
• Document tax amount: 257.344538 * 0.19 = 48.8954622 ~ 48.90
• Rounded document amount before taxes: 306.24 – 48.90 = 257.34
As a result of the calculations, there is a difference between the amount before taxes by lines (257.35) and the
document amount before taxes (257.34). The difference will be posted to the Tax Rounding Gain/Loss account.

Generated Transactions
With this way of configuring the inclusive output or input VAT, as a result of the given calculation, the system will
create the following GL transactions on release of a taxable AR and AP documents.

Table: GL Transaction with a Rounding Difference on Release of AR Document

Account Debit Credit

Accounts Receivable 306.24  

Revenue of line 1   88.70

Revenue of line 2   94.95

Revenue of line 3   73.70

Tax Payable   48.90

Tax Rounding Gain/Loss 0.01  

  306.25 306.25

Table: GL Transaction with a Rounding Difference on Release of AP Document

Account Debit Credit

Accounts Payable   306.24

 Implementing Taxes | 282

Account Debit Credit

Expense of line 1 88.70  

Expense of line 2 94.95  

Expense of line 3 73.70  

Tax Expense 48.90  

Tax Rounding Gain/Loss   0.01

  306.25 306.25

System Configuration for Inclusive VATs at the Document Level

You configure and maintain these types of VAT as follows:
1. Optional: On the Enable/Disable Features (CS100000) form, you enable the Net/Gross Entry Mode feature.
2. If the Net/Gross Entry Mode feature has been enabled, on the General Ledger Preferences (GL102000) form,
you specify a rounding limit in the Rounding Limit box in the Rounding Settings section.
3. On the Tax Preferences (TX103000) form, you specify the tax rounding gain and loss accounts to which any
tax rounding difference will be posted.
4. You create a tax of the VAT type on the Taxes (TX205000) form. For instructions, see Value-Added Taxes: To
Create a General VAT and Exempt VAT.
5. You create an AR document, such as an invoice, to which the output VAT is applied or an AP document, such
as an AP bill, to which the input VAT is applied, and you specify the Tax Calculation Mode for this document
(if you want to use a different mode than the default value copied from the customer or vendor settings).

The following table illustrates three conditions that must be met in the system for it to calculate inclusive
document-level taxes:

  Net/Gross Entry Mode feature Tax Calculation Mode for a Tax Calculation Rule for a tax
document

1. Enabled Gross Exclusive Document-Level

2. Enabled Tax Settings Inclusive Document-Level

3. Disabled N/A Inclusive Document-Level

These types of VAT are calculated in the same way on other forms, such as Sales Orders (SO301000),
Opportunities (CR304000), Cash Sales (AR304000), Sales Quotes (CR304500), Invoices (SO303000),
Quick Checks (AP304000), Expense Receipts (EP301020), Expense Claims (EP301000), Cash
Transactions (CA304000), and Purchase Orders (PO301000) forms.
 Implementing Taxes | 283

Value-Added Taxes: Statistical VAT

Generally, a statistical VAT is reported but not paid. It may be required that you report the taxable amounts to the
country in the VAT zone from which you imported the goods. For taxes of this type, the rate is zero and the system
calculates the taxable amounts only. The tax amounts do not update the document amounts.
To configure the statistical VAT, on the Taxes form, you should select VAT in the Tax Type box and select the
Statistical VAT check box.
When you create a VAT of the Statistical type, you have to specify rates of zero for the input tax and output tax.

Value-Added Taxes: To Create a Statistical VAT and Inclusive VATs

You use the Taxes (TX205000) form to create a value-added tax of any modification.

Before You Proceed

Make sure that the VAT Reporting feature is enabled in your system on the Enable/Disable Features (CS100000)
form.

Consider creating a convention for tax names to specify in the Description box. You may find it
convenient to specify the tax rate percentage directly in the tax name—for instance, VAT_16% for a tax
with a 16% rate.

To Create a Statistical VAT

1. Open the Taxes (TX205000) form.
2. On the form toolbar, click Add New Record.
3. On the Tax Settings tab (Summary area), proceed as follows:
a. In the Tax ID box, type the unique identifier to be used for the tax.
b. If needed, in the Description box, type a description of the tax, to help users easily identify tit.
c. In the Tax Type box, select VAT.
d. Select the Statistical VAT check box.
e. In the Calculation Rule box, select one of the following calculation methods for the tax:
• Inclusive Line-Level
• Exclusive Line-Level
• Compound Line-Level
• Exclusive Document-Level
• Compound Document-Level
f. If needed, select the Exclude from Tax-on-Tax Calculation check box if you need to exclude the tax from
the taxable amount for calculating second-level taxes.
g. If needed, in the Tax Agency box, select the tax agency to which you will report the tax. Leave the box
blank if you have not configured a tax agency account yet, or do not plan to prepare a tax report in
Acumatica ERP.
4. On the Tax Schedule tab, do the following for every set of dates and rates to be added for the tax:
 Implementing Taxes | 284

a. In the Start Date column of the row, specify the date when the tax becomes effective.
b. In the Tax Rate column, specify 0 for the output tax.
c. In the Reporting Group column, select the Output reporting group that was defined for the tax agency
and was intended for this tax.
d. Click Add Row again.
e. In the Tax Rate column of the new row, specify 0 for the input tax.
f. In the Reporting Group column, select the Input reporting group that was defined for the tax agency and
intended for this tax.
5. On the GL Accounts tab, perform the following instructions:
a. In the Tax Payable Account box, select the GL account to accumulate the tax amounts to be paid to the
applicable tax agency.
b. In the Tax Payable Subaccount box, enter the number of the corresponding subaccount.
c. In the Tax Claimable Account box, select the GL account to accumulate the tax amounts to be claimed
from the applicable tax agency.
d. In the Tax Claimable Subaccount box, enter the number of the corresponding subaccount.
6. On the form toolbar, click Save.

The statistical VAT tax is created in the system. Now you need to set up tax calculation across the system. For
details, see Selecting Tax Calculation Methods.

To Create an Inclusive Document-Level Output VAT

1. Open the Taxes (TX205000) form.
2. On the form toolbar, click Add New Record.
3. On the Tax Settings tab, proceed as follows:
a. In the Tax ID box, type the unique identifier to be used for the tax.
b. Optional: In the Description box, type a description of the tax, to help users easily identify it.
c. In the Tax Type box, select VAT.
d. In the Calculation Rule box, select Inclusive Document-Level.
e. Optional: In the Tax Agency box, select the tax agency to which you will report the tax. Leave the box
blank if you have not configured this tax agency account yet, or do not plan to prepare a tax report in
Acumatica ERP.
4. On the Tax Schedule tab, for every set of dates and rates to be added for the tax, add a row and do the
following:
a. In the Start Date column of the row, specify the date when the tax becomes effective.
b. In the Tax Rate column, specify the rate of the VAT that generally applies to specific sales.
c. In the Reporting Group column, select the Output reporting group that was defined for the tax agency
and intended for this tax.
5. On the GL Accounts tab, perform the following instructions:
a. In the Tax Payable Account box, select the GL account to accumulate the tax amounts to be paid to the
applicable tax agency.
b. In the Tax Payable Subaccount box, enter the corresponding subaccount.
c. In the Tax Claimable Account box, select the GL account to accumulate the tax amounts to be claimed
from the applicable tax agency.
d. In the Tax Claimable Subaccount box, enter the number of the corresponding subaccount.
 Implementing Taxes | 285

6. On the form toolbar, click Save.

To Create an Inclusive Document-Level Input VAT

1. Open the Taxes (TX205000) form.
2. On the form toolbar, click Add New Record.
3. On the Tax Settings tab, proceed as follows:
a. In the Tax ID box, type the unique identifier to be used for the tax.
b. Optional: In the Description box, type a description of the tax, to help users easily identify it.
c. In the Tax Type box, select VAT.
d. In the Calculation Rule box, select Inclusive Document-Level.
e. Optional: In the Tax Agency box, select the tax agency to which you will report the tax. Leave the box
blank if you have not configured this tax agency account yet, or do not plan to prepare a tax report in
Acumatica ERP.
4. On the Tax Schedule tab, for every set of dates and rates to be added for the tax, add a row and do the
following:
a. In the Start Date column of the row, specify the date when the tax becomes effective.
b. In the Tax Rate column, specify the rate of the VAT that generally applies to specific purchases.
c. In the Reporting Group column, select the Input reporting group that was defined for the tax agency and
intended for this tax.
5. On the GL Accounts tab, perform the following instructions:
a. In the Tax Payable Account box, select the GL account to accumulate the tax amounts to be paid to the
applicable tax agency.
b. In the Tax Payable Subaccount box, enter the corresponding subaccount.
c. In the Tax Claimable Account box, select the GL account to accumulate the tax amounts to be claimed
from the applicable tax agency.
d. In the Tax Claimable Subaccount box, enter the number of the corresponding subaccount.
6. On the form toolbar, click Save.

Withholding Taxes

The topics of this chapter describe how to configure a withholding tax in Acumatica ERP.

Withholding Taxes: General Information

A withholding tax is a type of tax withheld from certain types of payments. For example, in the United States (and
some other countries), a withholding tax is applied to the employment income and withheld from wages, and
then paid to the government. In Singapore, a withholding tax is a tax applicable to non-resident individuals and
companies that derive income from services provided or work done in Singapore; for example, it is withheld from
such types of payments as the rent of movable property.

In Acumatica ERP, the system calculates withholding taxes on the release of checks in accounts
payable.
 Implementing Taxes | 286

Learning Objectives
In this chapter, you will learn how to configure a withholding tax.

Applicable Scenarios
You use withholding taxes in the following cases:
• You need to withhold a tax from certain types of payments and pay the tax to the tax authority
• You make a payment to a foreign vendor and need to calculate a withholding tax

Configuration of Taxes
The entities that you have configured in the taxes subledger should be linked with the following entities, which you
create in other Acumatica ERP subledgers:
• Stock items and non-stock items: To calculate tax amounts in the documents in which you specify inventory
IDs, you should create stock items (for goods) and non-stock items (for services) and associate each item
with the appropriate tax category. The tax category defines the taxes that can be applied to this stock or
non-stock item.
• Vendor and customer accounts: You should create needed vendors in accounts payable and customers
in accounts receivable if they do not already exist. Depending on the geographical location of the sale or
purchase transaction, different taxes can be applied to the document. To define which taxes are applied in
the location of your vendor or customer, you should assign the appropriate tax zone to each new or existing
vendor and customer.
Once these entities are configured, the system will calculate tax amounts when a user enters a document in the
system. The system does this by applying the particular tax or taxes determined by the system according to the
location of the selected customer or vendor and the type of stock or non-stock item specified in the document.

Withholding Taxes: Configuration Prerequisites

Before starting to create a withholding tax, you should be sure that the settings have been specified and entities
have been created, as described in the following sections.

Enabling the Needed Feature

On the Enable/Disable Features (CS100000) form, the VAT Reporting feature must be enabled.

Configuring the System

You need to make sure the following tasks have been performed in Acumatica ERP before you begin to create a
withholding tax:
• On the Chart of Accounts (GL202500) form, all GL accounts that you will use for tax reporting purposes have
been added.
• On the Vendors (AP303000) form, a vendor set up as a tax agency has been configured. For details, see Tax
Agency: To Set Up a Tax Agency for VAT.
• On the Tax Categories (TX205500) form, the needed tax category has been created.
• On the Tax Zones (TX206000) form, the needed tax zone has been created.
 Implementing Taxes | 287

• On the Reporting Settings (TX205100) form, a tax report has been configured as described in Tax Report
Configuration: To Create a Tax Report for VAT.

Withholding Taxes: Implementation Activity

By performing this implementation activity, you will learn how to configure a withholding tax.

Story
Suppose that SweetLife Fruits & Jams started purchasing services from a company located in Europe. Payments
made to a foreign vendor are subject to withholding tax that has not yet been implemented in the system. Acting
as an implementation consultant, you need to prepare the system entities for the creation of the new type of tax as
follows:
• Create a GL account for withholding taxes in the chart of accounts
• Update the settings of the tax agency
• Update the settings of an existing tax report
• Create a tax category and update the settings of a tax zone for the withholding tax
• Create the withholding tax

Configuration Overview
In the U100 dataset, the VAT Reporting feature has been enabled on the Enable/Disable Features (CS100000) form.

Process Overview
In this activity, you will create a GL account on the Chart of Accounts (GL202500) form. On the Vendors (AP303000)
form, you will update the settings of a tax agency to make it possible to create new revisions of a tax report for
closed periods. On the Reporting Settings (TX205100) form, you will update the configuration of a tax report and on
the Reporting Groups (TX205200) form, you will add report lines to the Withholding group. For the withholding tax,
you will create a tax category on the Tax Categories (TX205500) form and update the settings of a tax zone on the
Tax Zones (TX206000) form. Finally, on the Taxes (TX205000) form, you will create a withholding tax.

System Preparation
To prepare the system, do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. You should
sign in as an implementation consultant by using the gibbs username and the 123 password.
2. On the Company and Branch Selection menu, on the top pane of the Acumatica ERP screen, select the
SweetLife Head Office and Wholesale Center branch.
3. As a prerequisite activity, in the company to which you are signed in, be sure you have configured the VATTAX
tax agency as described in Tax Agency: To Set Up a Tax Agency for VAT.
4. As a prerequisite activity, in the company to which you are signed in, be sure you have configured a tax
report as described in Tax Report Configuration: To Create a Tax Report for VAT.

Step 1: Creating a GL Account

To create a GL account for withholding taxes, do the following:
1. Open the Chart of Accounts (GL202500) form.
 Implementing Taxes | 288

2. On the form toolbar, click Add Row and specify the following settings for the new row:
• Account: 24210
• Account Class: TAXESPAY
• Type: Liability
• Description: Withholding Tax Payable
• Control Account Module: TX
This account will be used for accumulating the withholding tax amounts to be paid to a tax agency in a tax
period.
3. On the form toolbar, click Save.

Step 2: Updating the Tax Agency Settings

To update the tax agency settings, do the following:
1. Open the Vendors (AP303000) form.
2. In the Vendor ID box, select VATTAX.
3. On the Tax Agency tab, select the Update Closed Tax Periods check box.
With this check box selected, you can prepare new revisions of tax reports for closed periods that will
include documents processed in a particular tax period aer the period was closed.
4. On the form toolbar, click Save.

Step 3: Updating the Configuration of the Tax Report

To update the configuration of the tax report, do the following:
1. Open the Reporting Settings (TX205100) form.
2. In the Tax Agency box, select VATTAX.
3. On the Report Lines tab, click Add Row and specify the following settings:
• Description: Purchases Subject to Withholding Tax
• Update With: Taxable Amount
• Update Rule: +Output-Input
4. Click Add Row again and specify the following settings for another row:
• Description: Withholding Tax
• Update With: Tax Amount
• Update Rule: +Output-Input
5. On the Reporting Groups tab, click Add Row and specify the following settings:
• Name: Withholding
• Group Type: Output
6. On the form toolbar, click Save.

Step 4: Specifying the Report Lines for the Withholding Group

To specify the report lines for the withholding group, do the following:
1. While you are still on the Reporting Settings (TX205100) form with the Withholding group selected, click
Group Details on the table toolbar.
 Implementing Taxes | 289

2. On the Reporting Groups (TX205200) form, which opens, click Add Row on the table toolbar, and add the
following lines:
• Report Line: 9 - Tax Amount Payable
• Report Line: 10 - Purchases Subject to Withholding Tax
• Report Line: 11 - Withholding Tax
3. On the form toolbar, click Save.

Step 5: Creating a Tax Category and Updating a Tax Zone

To create a tax category and update the settings of a tax zone for the withholding tax, do the following:
1. Open the Tax Categories (TX205500) form.
2. On the form toolbar, click Add New Record and specify the following settings:
• Tax Category ID: WITHHOLD
• Description: Withholding
3. On the form toolbar, click Save.
4. Open the Tax Zones (TX206000) form.
5. In the Tax Zone ID box, select FOREIGN.
6. In the Default Tax Category box, select WITHHOLD.
7. On the Applicable Taxes tab, remove the VATIM tax.
8. On the form toolbar, click Save.

Step 6: Creating a Withholding Tax

To create a withholding tax, do the following:
1. Open the Taxes (TX205000) form.
2. On the form toolbar, click Add New Record, and specify the following settings on the Tax Settings tab:
• Tax ID: WTH
• Description: Withholding Tax 15%
• Tax Type: Withholding
• Calculation Rule: Inclusive Line-Level (inserted by default)
This setting means that the tax is already included in the line amount and should be subtracted from it.
By default, the system selects this rule for taxes with the Withholding type.
• Cash Discount: Does Not Affect Taxable Amount
• Tax Agency: VATTAX
3. On the Tax Schedule tab, click Add Row on the table toolbar, and specify the following settings:
• Start Date: 1/1/1900 (inserted by default)
• Tax Rate: 15
• Reporting Group: Withholding
4. On the GL Accounts tab, in the Tax Payable Account box, specify 24210 - Withholding Tax Payable.
5. On the Categories tab, click Add Row on the table toolbar, and select WITHHOLD in the Tax Category
column.
6. On the Zones tab, click Add Row on the table toolbar, and select FOREIGN in the Tax Zone ID column.
7. On the form toolbar, click Save.
 Implementing Order Management | 290

Implementing Order Management

This chapter describes the minimum required configuration of order management functionality in Acumatica ERP.

Basic Order Management

This chapter describes the minimum configuration of the order management functionality that is required for
Acumatica ERP users to process the sales and purchases of non-stock items and services through sales orders and
purchase orders, respectively.

Order Management Basic Configuration: General Information

This topic provides a general overview of the configuration steps that you have to perform before you can process
sales and purchases of non-stock items through orders.

Learning Objectives
In this chapter, you will learn how to perform the initial configuration for the order management functionality. In
particular, you will do the following:
• Enable the needed system feature
• Specify the minimum required configuration for the purchase order and sales order management
functionality
• Learn the settings that you can specify to make the system fit your business requirements

Applicable Scenarios
You perform configuration of order management in any of the following cases:
• When you initially implement Acumatica ERP and the Inventory and Order Management feature is included
to your license.
• When you have purchased the Inventory and Order Management feature, and you need to configure order
management in the existing system.

System Features and Minimum Required Settings

To be able to configure the sales order management and purchase order management functionality in the system,
you need to enable the Inventory and Order Management feature on the Enable/Disable Features (CS101000) form.

Each particular feature may be subject to additional licensing; please consult the Acumatica ERP sales
policy for details.

Aer you have enabled this feature, you need to review and save the default settings on the Sales Orders
Preferences (SO101000) and Purchase Orders Preferences (PO101000) forms. Then you can proceed with preparing
sales and purchase orders with non-stock items.
 Implementing Order Management | 291

Order Management Basic Configuration: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for the
processing of sales and purchases with non-stock items, and to specify settings that affect the processing workflow.

Prerequisites
Before you start configuring order management, you should make sure that the needed features have been
enabled and settings have been specified, as described in the following checklist.

Form Criteria to Check

  Make sure that the minimum company settings are

specified, as described in Company Without Branches:
General Information.

Enable/Disable Features (CS100000) form Make sure that the Inventory and Order Management
feature is enabled.

Order Types (SO201000) Make sure that the IN order type has been configured
and activated, as described in Sales Order Types: To
Configure the IN Order Type.

Table: Minimum Required Settings

To make it possible for users to process sales and purchase orders with non-stock items, you should navigate to the
following forms and save the default settings.

Form Settings to Save

Sales Orders Preferences (SO101000) form Save the default settings.

Purchase Orders Preferences (PO101000) Save the default settings.

Settings That Affect the Workflow

When you are configuring order management, you can specify additional settings to configure the company to fit
your business requirements:
• To cause the system to verify the customer's credit status and put a sales order on hold if the credit limit
has been exceeded, select the Hold Document on Failed Credit Check check box on the Sales Orders
Preferences (SO101000) form.
• To reduce input errors during purchase order entry, set up the validation of order totals by selecting the
For Normal and Standard Orders check box in the Validate Total on Entry section of the Purchase Orders
Preferences (PO101000) form, so that a user will need to enter a control total for each order of this type; the
order can be processed further only if the system-calculated total equals the manually entered control total.
 Implementing Order Management | 292

Order Management Basic Configuration: Implementation Activity

You perform the following implementation activity to prepare the system to support the processing of sales and
purchase orders with non-stock items.

Story
Suppose that you, as an implementation manager, need to configure system for processing sales and purchases of
non-stock items through orders.

System Preparation
Before you start configuring the basic order management functionality, you perform the following instructions:
1. In a new tenant, prepare the company with the basic settings, as described in the Company Without
Branches: General Information.
2. On the Enable/Disable Features (CS100000) form, enable the Inventory and Order Management feature.
3. On the Order Types (SO201000) form, configure and activate at least the IN order type, as described in Sales
Order Types: To Configure the IN Order Type.

Basic Order Management Configuration

To perform the basic configuration of purchase order and sales order functionality, proceed as follows:
1. Open the Sales Orders Preferences (SO100000) form.
2. Make sure that IN is selected in the Default Sales Order Type box. This is the predefined order type that is
used for processing sales of non-stock items.
3. Clear the Hold Invoices on Failed Credit Check check box.
4. Save your changes on the form.
5. Open the Purchase Orders Preferences (PO101000) form.
6. Make sure that the For Normal and Standard Orders check box is cleared.
7. Save your changes on the form.

You have configured basic order management functionality. Now you can processed with processing sales and
purchase orders with non-stock items.

Order Management with Inventory

This chapter describes the minimum configuration of the order management functionality that is required for
Acumatica ERP users to process the sales and purchases of stock items through sales orders and purchase orders,
respectively.

Configuration of Order Management: General Information

This topic provides a general overview of the configuration steps that you have to perform before you can track
inventory items and users can process sales and purchases of inventory items through orders.
 Implementing Order Management | 293

Learning Objectives
In this chapter, you will do the following:
• Enable the needed system features
• Specify the minimum required configuration for the inventory, purchase order, and sales order
management functionality
• Become familiar with the recommended settings that you can specify to make the system fit your business
requirements

Applicable Scenarios
You perform configuration of inventory and order management in any of the following cases:
• You are initially implementing Acumatica ERP and the Inventory and Order Management and Inventory
features are included in your license.
• Your new license includes the Inventory and Order Management and Inventory features, and you need to
configure inventory and order management in the existing system.

System Features to Be Enabled

To be able to configure and use the inventory and order management functionality in the system, you need to
enable the following features on the Enable/Disable Features (CS100000) form:
• Inventory and Order Management: Required for sales order management and purchase order management
and allows you to configure purchase order processing for regular orders and configure sales order
processing with the predefined order types.
• Inventory: Required for inventory management.
A warehouse included in the basic functionality includes one warehouse location, which is configured in the system
automatically. This warehouse and location are used by default for receiving and issuing all inventory items and are
not displayed on the forms.

Each particular feature may be subject to additional licensing; please consult the Acumatica ERP sales
policy for details.

Order Management with Inventory Configuration: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for the order
fulfillment and inventory management processes, and to specify settings that affect the processing workflow.

Prerequisites
Before you start configuring order and inventory management, you should make sure that the needed features
have been enabled, settings have been specified, and entities have been created, as summarized in the following
checklist.
 Implementing Order Management | 294

Form Criteria to Check

Multiple forms Make sure that the minimum company settings are
configured, as described in Company Without Branch-
es: General Information.

Enable/Disable Features (CS100000) form Make sure that the Inventory and Order Management
and Inventory features are enabled.

Order Types (SO201000) Make sure that at least one order type (SO) is config-
ured and activated, as described in Sales Order Types:
General Information .

Reason Codes (CS211000) Make sure that the reason codes to be used for pro-
cessing inventory transactions and vendor returns
have been defined in the system as described in Rea-
son Code Creation: Implementation Activity.

Minimum Required Settings

To be able to keep stock items and track the sales and purchase orders that include these stock items, you should
specify and save the minimum settings listed in the following table.

Form Settings to Specify

Inventory Preferences (IN101000) Specify the Receipt Reason Code, Issue/Return Rea-
son Code, Adjustment Reason Code, and Phys. In-
ventory Reason Code; save these settings.

Sales Orders Preferences (SO101000) form Specify SO as the Default Sales Order Type, and save
your change to this form.

Purchase Orders Preferences (PO101000) Specify the PO Return Reason Code, and save your
change to this form.

Recommended Settings

To speed the processing of documents and minimize errors, you should specify and save the recommended
settings listed in the following table.

Form Settings to Specify

Inventory Preferences (IN101000) • Update GL: Selected

• Automatically Post on Release: Selected

Sales Orders Preferences (SO101000) form • Hold Shipments on Entry: Cleared

• Validate Shipment Total on Confirmation:
Cleared
• Use Shipment Date for Invoice Date: Selected
• Automatically Release IN Documents: Selected
 Implementing Order Management | 295

Form Settings to Specify

Purchase Orders Preferences (PO101000) • Release IN Documents Automatically: Selected

Other Settings That Affect the Workflow

When you are configuring inventory and order management, you can specify additional settings to configure the
company to fit your business requirements:
• To configure the system to post inventory transactions to the general ledger, select the Update GL check
box on the Inventory Preferences (IN101000) form.
• To cause the system to post the generated general ledger transactions automatically, select the
Automatically Post on Release check box on the Inventory Preferences form.
• To cause the system to assign the group of prepared documents the On Hold status by default, select the
following check boxes:
• Hold Documents On Entry check box on the Inventory Preferences form (for inventory transactions)
• Hold Shipments on Entry check box on the Sales Orders Preferences (SO101000) form (for shipment
documents)
• Hold Receipts on Entry check box on the Purchase Orders Preferences (PO101000) form (for purchase
receipt documents)
• To set up the system so that users need to enter control amounts before it processes documents, select the
following check boxes:
• Validate Document Totals on Entry on the Inventory Preferences form (for inventory transactions)
• Validate Shipment Total on Confirmation on the Sales Orders Preferences form (for shipments)
• For Normal and Standard Orders on the Purchase Orders Preferences form (for purchase orders)
• For Receipts on the Purchase Orders Preferences form (for purchase receipts)
• To configure the system to automatically release documents that are generated, select the following check
boxes:
• Automatically Release IN Documents check box on the Sales Orders Preferences form (to release
inventory transactions generated during the processing of sales orders)
• Release IN Documents Automatically check box on the Purchase Orders Preferences form (to release
inventory documents generated during the processing of purchase orders)
• Release AP Documents Automatically check box on the Purchase Orders Preferences form (to release
accounts payable documents generated during the processing of purchase orders)
• To cause the system to automatically create accounts payable documents on release of purchase
documents, select the Create Bill check box on the Purchase Orders Preferences (PO101000) form. By
default, the state of this check box is copied to each purchase order or purchase return that is created. If the
check box is cleared in a purchase order or purchase return, you can select this check box before releasing
the document.

Configuration of Order Management: Implementation Activity

In this implementation activity, you will learn how to prepare the system to support the tracking of inventory and
the processing of sales and purchase orders with stock items.
 Implementing Order Management | 296

The following activity is based on the U100 Basic Company dataset. If you are using another dataset,
or if any system settings have been changed in U100 Basic Company, these changes can affect the
workflow of the activity and the results of the processing. To avoid any issues, restore the U100 Basic
Company dataset to its initial state.
If you want to perform this activity in an out-of-the-box company instead of creating a tenant with
the dataset, you need to prepare a company with the basic settings, as described in Company Without
Branches: General Information.

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 activity steps.
FEEDBACK

Story
Suppose that you are an implementation manager for the SweetLife Fruits & Jams company, and you need to
configure the system for the processing of sales and purchases of stock items through orders.

Process Overview
In this activity, you will do the following:
1. Configure inventory preferences on the Inventory Preferences (IN101000) form
2. Configure sales order preferences on the Sales Orders Preferences (SO101000) form
3. Configure purchase order preferences on the Purchase Orders Preferences (PO101000) form
4. Review the company's units of measure on the Companies (CS101500) form
5. Configure inventory control accounts on the Chart of Accounts (GL202500) form

System Preparation
Before you start configuring the inventory and order management functionality, you should do the following:
1. Launch the Acumatica ERP website with the U100 Basic Company dataset preloaded, and sign in to the
system as implementation manager Kimberly Gibbs by using the gibbs username and the 123 password.
2. On the Enable/Disable Features (CS100000) form, make sure that the Inventory and Order Management and
Inventory features are enabled.
3. On the Reason Codes (CS211000) form, create and save the reason codes that are required for configuring
inventory and order management, as described in Reason Code Creation: Implementation Activity.
4. On the Order Types (SO201000) form, configure and activate at least the SO order type, as described in Sales
Order Types: To Configure the SO Order Type.

Step 1: Configuring Inventory Preferences

To configure the inventory functionality, do the following:
1. Open the Inventory Preferences (IN101000) form.
2. In the Default Reason Codes section of the General tab, specify the following settings:
 Implementing Order Management | 297

• Receipt Reason Code: INRECEIPT

• Issue/Return Reason Code: INISSUE
• Adjustment Reason Code: INADJUST
• Phys. Inventory Reason Code: PHYINVADJ
3. In the Posting Settings section, select the Update GL check box.
4. In the Data Entry Settings section, clear the Hold Documents On Entry and Validate Document Totals on
Entry check boxes.
5. On the form toolbar, click Save.

Step 2: Configuring Sales Order Preferences

To configure the sales order functionality, do the following:
1. Open the Sales Orders Preferences (SO101000) form.
2. In the Data Entry Settings section of the General tab, make sure that SO is selected in the Default Sales
Order Type box. This is the predefined sales order type used for the processing of stock items with shipping.
3. In the Shipment Settings section, clear the Hold Shipments on Entry and Validate Shipment Total on
Confirmation check boxes.
4. In the Invoice Settings section, clear the Hold Invoices on Failed Credit Check check box.
5. In the Posting Settings section, select the Automatically Release IN Documents check box.
6. On the form toolbar, click Save.

Step 3: Configuring Purchase Order Preferences

To configure the purchase order functionality, do the following:
1. Open the Purchase Orders Preferences (PO101000) form.
2. In the Validate Total on Entry section of the General tab, make sure that the For Normal and Standard
Orders and For Receipts check boxes are cleared.
3. In the Other section, specify VENDORRET as the PO Return Reason Code.
4. Make sure that the Release IN Documents Automatically check box is selected.
5. Select the Release AP Documents Automatically check box.
6. Clear the Hold Receipts on Entry check box.
7. On the form toolbar, click Save.

Step 4: Reviewing the Company’s UOMs

To review the settings of the company’s units of measure (UOMs), do the following:
1. Open the SWEETLIFE company on the Companies (CS101500) form.
2. In the Miscellaneous Settings (Shared) section of the Company Details tab, make sure that KG has been
specified in the Weight UOM box and LITER in the Volume UOM box.

Step 5: Configuring Inventory Control Accounts

To configure the needed control accounts for inventory operations, do the following:
1. Open the Chart of Accounts (GL202500) form.
 Implementing Order Management | 298

2. Search for the 12100 account that has Inventory Asset in the Description column.

To search for a record in a list or records, you can enter a text string in the Search box of the
filtering area. The system will find all the records that match your search criteria and display
these records in the table. For details, see Searching in Acumatica ERP.

3. In the Control Account Module column for the 12100 - Inventory Asset account, specify IN.
4. On the form toolbar, click Save.
5. Search for the 20100 account that has Inventory Purchase Accrual in the Description column.
6. In the Control Account Module column for the 20100 - Inventory Purchase Accrual account, specify PO.
7. On the form toolbar, click Save.

You have configured the basic inventory and order management functionality. Now you can proceed with
configuring inventory entities. For details, see Preparing Inventory Entities.

Activity Recap
In this activity, we have illustrated how the implementation manager has done the following:
1. Configured the basic settings of inventory documents, sales orders, and purchase orders
2. Reviewed the company’s UOMs
3. Configured control accounts for inventory operations

Sales Order Types

Acumatica ERP provides a number of predefined sales order types. Each order type defines the information to be
entered for an order of the type, the processing operations to be performed for completion of an order of the type,
and the documents to be generated during the processing of an order of the type.
This chapter describes how to activate and configure the predefined order types.

Sales Order Types: General Information

Acumatica ERP provides a number of predefined sales order types for common processing operations, such as
sales with shipment, sales without shipment, sales by cash, sales by check, and customer returns of inventory
items. On the Order Types (SO201000) form, you activate the order types your company will use and make sure they
are configured to fit your company's processes.
When you create a new order on the Sales Orders (SO301000) form, you select the appropriate order type, which
determines the information to be entered on the form, the processing operations to be performed for the order to
be completed, and the documents to be generated during the order processing.

Learning Objectives
In this chapter, you will do the following:
In this lesson, you will do the following:
• Activate an order type with the minimum required settings
• Specify optional settings that affect how an order of the type is processed
 Implementing Order Management | 299

Applicable Scenarios
You configure order types in any of the following cases:
• You are initially configuring order management in Acumatica ERP, and you have to activate at least one
order type to be able to create and process sales orders in the system.
• You need to activate any of the predefined order types that are not yet active to support such business
processes as sales, shipment, or return.

Order Type for Recording Expected Sales

If you want to track your company's expected future sales, your employees can prepare orders of the QT type
(quotes) that later can be converted to sales orders or canceled if the sale is no longer expected to happen. Quotes
can also be used as templates for repeating orders for a particular customer. For more information, see Processing
Pre-Sale Quotes.

Order Types for Processing Sales

Acumatica ERP provides predefined order types for the processes that are used most frequently in sales. The
predefined order types for sales on the Order Types (SO201000) form can be divided into two major groups:
• Order types that are processed through shipments
• Order types that are processed directly to invoices without shipments
The need for shipment processing depends on the business requirements of the company.
For an order of order type that requires shipping, you can process a shipment of items with a single shipment
document, or with multiple partial shipment documents, each of which may be invoiced individually. For
shipments, you can print labels with carrier tracking numbers. Also, from the shipment document, you can print
the pick list for the warehouse worker (for verification of the shipped and received quantities) and the shipment
confirmation for the buyer.
You choose which types of the sales orders to activate and configure depending on the processes established in
your company. The following table shows a comparison of predefined order types for sales.

Table: Order Types for Sales

Business Process SO SA IN CS
Requirements/ Or-
der Type

Shipping of Items Required Required Not needed Not needed

to Customer

Payment By credit By credit By credit In cash

Billing Document Invoice Invoice Invoice Cash sale

to Customer

Reserving Items in Manual Automatic Not needed Not needed

Inventory

Order Types for Processing Customer Returns

Acumatica ERP provides return order types for the most frequently used return processes, such as return for
credit, return for cash, or return for replacement. In the system, sales returns can be processed through a simple
 Implementing Order Management | 300

workflow, in which you create a return order and then process the invoice directly from the order, or through the
full workflow, in which you process the receipt of the returned item, process the shipment of the replacement item,
and then prepare the invoice.
You choose which types of return orders to activate and configure depending on your return policies. The following
table shows a comparison of the predefined order types for returns of sold goods.

Table: Order Types for Returns

Business CR CM RC RR RM
Process Re-
quirements/ Or-
der Type

Shipping of Not needed Not needed Shipping of re- Shipping of re- Shipping of re-
Items turned items turned items turned items
from the cus- from the cus- from the cus-
tomer to inven- tomer to inven- tomer to inven-
tory tory, and ship- tory, and ship-
ping of replace- ping of replace-
ment items to ment items to
the customer the customer

Return Type Return for cash Return for credit Return for credit Return for re- Return for re-
placement at placement at a
the same price higher price

Billing Docu- Cash return Credit memo Credit memo Not needed Invoice in the
ment to Cus- document with with the with the amount of the
tomer the amount to amount to be amount to be difference be-
be returned returned returned tween the prices
of returned and
replacement
items and (op-
tionally) a re-
stocking fee

Order Type for Processing Transfers

In a system with multiple warehouses or multiple warehouse locations, you may need to create and process
transfer orders of the TR order type for goods that are reserved in remote warehouses and need to be moved from
one warehouse to another before a sales order can be fulfilled. Also, transfer orders can be generated in the process
of replenishment, to move goods from the source warehouse to the destination warehouse.

Sales Order Types: Implementation Checklist

The following sections provide details that you can use to ensure that the system is configured properly for the
processing of sales orders, and to specify settings that affect the processing workflow for orders of different types.

Enabling the Needed Features

You should make sure the following features have been enabled on the Enable/Disable Features (CS100000) form
based on the types of orders you want to configure and use:
 Implementing Order Management | 301

• The Inventory and Order Management feature to be able to configure and use orders of any of the following
types: QT, IN, CM, CS, and CR
• The Inventory and Order Management and Inventory features to be able to configure and use orders of any of
the following types: SO, SA, RR, RM, and RC
• The Inventory and Order Management, Inventory, and Multiple Warehouses features to be able to configure
and use orders of the TR order type

Configuring the System

Before you begin configuring order types, you should make sure that on the Chart of Accounts (GL202500) form, all
GL accounts that you will use for configuring an order type have been added. For details, see General Ledger: To
Create a Chart of Accounts.

Minimum Required Settings

For each sales order type that you are going to use, you should specify the following minimum settings to configure
and activate the order type.

Form Criteria to Check

The General tab of the Order Types (SO201000) form • The Order Numbering Sequence, which is the se-
quence to be used to assign order reference num-
bers, is specified.
• The Invoice Numbering Sequence, which is the se-
quence to be used to assign reference numbers for
invoices prepared for orders of this type, is speci-
fied.
• The Freight Account, which is the account for post-
ing freight charges, is specified.

The Summary area of Order Types (SO201000) form The Active check box, indicating that the order type is
available for use, is selected.

Settings That Affect the Workflow

For a particular order type, you can specify additional settings on the General tab of the Order Types (SO201000)
form that will affect the processing of orders of this type:
• To cause new orders to be created with the On Hold status (so that they can be verified before further
processing), select the Hold Orders on Entry check box.
• To make the system verify the customer's credit status and put an order on hold if the credit limit has been
exceeded, select the Hold Document on Failed Credit Check check box.
• To reduce input errors during order entry, set up the validation of order totals by selecting the Require
Control Total check box, so that a user will need to enter a control total for an order of this type; the order
can be processed further only if the system-calculated total equals the manually entered control total.
• To cause the system to prepare separate bills for multiple orders of the type for the same customer, select
the Bill Separately check box.
• To cause the system to prepare separate shipment documents for multiple orders of the type for the same
customer, select the Ship Separately check box.
• To cause the system to calculate freight charges for an order of the type, select the Calculate Freight check
box.
• To cause the system to require a user to enter a customer order number for an order of the type, select the
Require Customer Order Nbr. check box. To allow users to enter duplicated customer order numbers,
 Implementing Order Management | 302

select Allow Duplicates in the Customer Order Nbr. Validation; to warn users if they have entered a
duplicated number, select Warn About Duplicates. To prevent users from entering duplicated customer order
numbers in orders of the type, select Forbid Duplicates.
On the Template tab of the same form, to configure the order type for quick processing, you select the Allow Quick
Processing check box and specify the quick processing settings. For more information, see Quick Processing of
Sales Orders.

Sales Order Types: To Configure the SO Order Type

In this implementation activity, you will learn how to configure and activate the SO order type.

The following activity is based on the U100 Basic Company dataset. If you are using another dataset,
or if any system settings have been changed in U100 Basic Company, these changes can affect the
workflow of the activity and the results of the processing. To avoid any issues, restore the U100 Basic
Company dataset to its initial state.
If you want to perform this activity in an out-of-the-box company instead of creating a tenant with
the dataset, you need to prepare a company with the basic settings, as described in Company Without
Branches: General Information.

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 activity steps.
FEEDBACK

Story
Suppose that you are an implementation manager for the SweetLife Fruits & Jams company, and you need to
configure the sales orders for processing sales of items with shipping. You need to configure and activate the SO
order type in the system.

Process Overview
In this activity, you will configure and activate the SO order type on the Order Types (SO201000) form.

System Preparation
Before you start configuring and activating order types, you should do the following:
1. Launch the Acumatica ERP website with the U100 Basic Company dataset preloaded, and sign in to the
system as implementation manager Kimberly Gibbs by using the gibbs username and the 123 password.
2. On the Enable/Disable Features (CS100000) form, make sure that the Inventory and Order Management and
Inventory features are enabled.

System Preparation
Before you start configuring and activating order types, make sure that on the Enable/Disable Features (CS100000)
form, the Inventory and Order Management and Inventory features are enabled.
 Implementing Order Management | 303

Step: Configuring and Activating an Order Type

To configure and activate the SO order type, do the following:
1. Open the SO order type on the Order Types (SO201000) form.
2. On the General tab, do the following:
a. In the Order Settings section, clear the Calculate Freight check box because you do not need to
calculate freight charges for the sales orders.
b. In the Posting Settings section, in the Freight Account box, specify 51300 (COGS – Freight).
3. In the Summary area, select the Active check box.
4. On the form toolbar, click Save.

Activity Recap
In this activity, we have illustrated how an implementation manager has configured the SO order type for the
processing of sales of items with shipping.

Sales Order Types: To Configure the IN Order Type

With the following process activity, you will learn how to configure and activate the IN order type.

Story
Suppose that you, as implementation manager, need to configure the sales orders for processing sales of items
without shipping. You need to configure and activate the IN order type in the system.

System Preparation
Before you configure and activate order types, perform the following instructions:
1. In a new tenant, prepare the company with basic settings as described in Company Without Branches:
General Information.
2. Enable the Inventory and Order Management feature on the Enable/Disable Features (CS100000) form.

Step: Configuring and Activating an Order Type

To specify settings to configure the IN order type and activate this type, do the following:
1. Open the Order Types (SO201000) form.
2. Open the IN order type.
3. On the General tab, clear the following check boxes:
• Bill Separately
• Calculate Freight
4. In the Freight Account, specify 51300 (COGS – Freight).
5. In the Summary area, select the Active check box.
6. Save your changes to the order type.
 Implementing Order Management | 304

Replenishment for Stock Items

Configuration of Replenishment: General Information

You can configure inventory replenishment in Acumatica ERP when a basic company has been configured in the
system. This configuration includes enabling the required features and specifying the required settings to be used
in the system for the replenishment functionality.
In a production environment, before you configure replenishment, you perform broader Acumatica ERP
implementation, which includes enabling features and specifying the basic settings to configure the general ledger,
cash management, accounts payable, accounts receivable, and order management with inventory.
You can configure automatic replenishment for stock items at a single warehouse or at multiple warehouses. If
particular warehouses will be used only for sales, you can configure the system so that these warehouses will be
replenished from the distribution centers. They are the warehouses to which purchases are received.

Learning Objectives
In this chapter, you will do the following:
• Become familiar with the general steps involved in workflow of replenishment configuration
• Learn about replenishment classes and sources
• Develop an understanding of the tasks that must be performed for automated calculation of replenishment
parameters
• Become familiar with replenishment methods and their parameters
• Learn about the Acumatica ERP Moving Average demand forecast model
• Configure replenishment for a stock item in a particular warehouse
• Set up the calculation of replenishment parameters for a stock item that requires replenishment in a
particular warehouse

Applicable Scenarios
You may need to configure replenishment in the following cases:
• Users need to start using the replenishment functionality.
• Your company has historical purchasing and sales data, including the time it takes your vendors to supply
goods. You need to automatically calculate replenishment parameters based on this data to optimize the
replenishment of stock and to purchase stock items at the right time when a certain level of stock still
remains.
• Your company's sales are affected by high and low seasons, and you need to automatically adjust the
replenishment of stock based on the season.

Replenishment in Acumatica ERP

The replenishment functionality in Acumatica ERP gives you the ability to maintain the needed level of stock at
warehouses by purchasing the appropriate quantity of stock items from vendors or by transferring that quantity
from other warehouses to the needed warehouses. The functionality that supports replenishment is available if
 Implementing Order Management | 305

the Inventory Replenishment feature and one or both of the following features are enabled on the Enable/Disable
Features (CS100000) form:

• Multiple Warehouse Locations if your company uses multiple warehouse locations

• Multiple Warehouses if your company replenishes inventory through transfers
Replenishment for stock items is performed on a per-warehouse basis. If your company has a single warehouse, it
purchases inventory to replenish the stock directly in this warehouse. If your company uses multiple warehouses,
you can consolidate purchase orders created for replenishment in the needed warehouses, receive purchased
items in a distribution center (a source warehouse), and then transfer the purchased quantities from this
distribution center to the destination warehouses. Also, you can replenish stock items by transferring them from a
warehouse where they are available to a warehouse where they are needed.
Acumatica ERP supports replenishment at a fixed quantity and replenishment between the minimum and
maximum quantities. To maintain the stock level of an inventory item at a warehouse between particular
minimum and maximum quantities, you can manually enter estimates of replenishment parameters for each
stock item. Some examples of replenishment parameters are safety stock, maximum quantity, and reorder
point. Instead of manually entering estimates, you can use a demand forecast model to automatically calculate
replenishment parameters based on sales statistics and perform replenishment for a specific future period based
on historical sales data. For details, see Configuration of Replenishment: Replenishment Methods and Configuration of
Replenishment: Demand Forecast Model.

In Acumatica ERP, only basic replenishment functionality is implemented. If complex replenishment

is needed, we recommend that you use ISV solutions instead of basic functionality.

General Steps of the Replenishment Configuration

To configure replenishment, you perform the following general steps:
1. You create replenishment classes. On the Replenishment Classes (IN208800) form, you create a
replenishment class for each type of replenishment source that you will use. For details, see Configuration of
Replenishment: Classes and Sources of Replenishment.
2. Optional: You create seasonalities. On the Replenishment Seasonality (IN206600) form, you create the
seasonalities that are used for the automatic calculation of replenishment parameters to normalize the
replenishment quantity in accordance with high and low sales seasons. For details, see Configuration of
Replenishment: Demand Forecast Model.
3. You specify the default replenishment class for each warehouse that is involved in replenishment. On the
Warehouses (IN204000) form, in the Replenishment Class box, you specify the replenishment class that the
system will use by default for the warehouse.
If on the Replenishment tab of the Stock Items (IN202500) form, multiple rows with replenishment settings
have been added, and any replenishment settings were updated for the stock item, the same replenishment
settings will be inserted for the combination of the item and the warehouse (that is, the warehouse that has
the same replenishment class as the stock item) on the Item Warehouse Details form and thus will be used
for preparing replenishment calculation. These settings include replenishment class, seasonality, source,
method, safety stock, reorder point, maximum quantity, transfer ERQ, and demand forecast model.
4. You specify the default replenishment settings for each item class whose items will be replenished. On
the Replenishment tab of the Item Classes (IN201000) form, you specify the replenishment settings that
the system will use by default if an item is created on the Stock Items form and this class is selected. If you
want to configure automated calculation of replenishment parameters, see Configuration of Replenishment:
Replenishment Methods and Configuration of Replenishment: Demand Forecast Model.
5. You update the replenishment settings for each existing stock item for which replenishment will be
performed. On the Replenishment tab of the Stock Items form, you make the needed adjustments to the
replenishment settings that the system has copied from the selected item class. For details about the
automatic calculation of replenishment parameters, see Configuration of Replenishment: Replenishment
Methods and Configuration of Replenishment: Demand Forecast Model.
 Implementing Order Management | 306

If aer the creation of the stock item, you update the replenishment settings of the item class
specified for it, the new settings of the item class will not be copied to the stock item. If you
want the same changes to be made to an existing stock item, you need to manually change the
replenishment settings of the stock item on the Stock Items form.

6. Optional: You calculate the replenishment parameters for a stock item that requires replenishment in
a particular warehouse. On the Calculate Replenishment Parameters (IN508500) form, you compute the
average daily sales and average lead time, and then you calculate the following parameters used in
automated replenishment: Max. Qty., Reorder Point, and Safety Stock.
7. Optional: You apply the calculated replenishment parameters used in automated replenishment to a
particular item‒warehouse pair. On the Apply Replenishment Parameters (IN509500) form, you review the
parameter values suggested by the forecast and update the corresponding settings with the suggested (that
is, calculated) ones.
8. Optional: You specify the vendors from which the item has been or can be purchased and the replenishment
parameters for the item on the Vendors tab of the Stock Items form. Also, you make sure the default vendor
for the item is selected on this tab (that is, the Default check box is selected in the row of the vendor). This
vendor will be used to replenish the stock of the inventory item unless you select another preferred vendor
for the item at a specific warehouse on the Item Warehouse Details form (see the following step).
9. Optional: You adjust the replenishment settings for item–warehouse pairs. If multiple warehouses are
used in your system and items are stocked in multiple warehouses, on the Replenishment tab of the
Item Warehouse Details form, you can review and adjust the replenishment parameters to be used for the
particular item at the selected warehouse. In the Preferred Vendor box of this tab, you can specify the
preferred vendor for the item–warehouse pair.

Processing of Replenishment Requests

In Acumatica ERP, a replenishment request is an internal record that the system creates when you process the
stock items on the Prepare Replenishment (IN508000) form. The prepared replenishment requests can then be
processed as follows, depending on how you replenish stock items:
• You replenish stock items through purchases: On the Create Purchase Orders (IN505000) form, you can
create purchase orders for selected requests with the Purchase replenishment source.
• You replenish stock items through transfers: On the Create Transfer Orders (SO509000) form, you can create
transfer orders for selected requests with the Transfer replenishment source.
• You replenish stock items through a distribution center: On the Create Transfer Orders (SO509000) form,
you can create transfer orders for selected requests with the Purchase replenishment source and the
replenishment warehouse defined on the Replenishment tab the Stock Items (IN202500) form or the
Replenishment tab of the Item Warehouse Details (IN204500) form.
When the replenishment is configured, and you have processed records on the Prepare Replenishment form,
depending on the replenishment source, you can do either (or both) of the following:
• Generate purchase orders based on requests on the Create Purchase Orders form. For details, see
Replenishing Inventory Through Purchases.
• Generate transfer orders based on requests on the Create Transfer Orders form. For details, see Replenishing
Inventory Through Transfers and Replenishing Inventory Through a Distribution Center.
On the Prepare Replenishment form, the quantity to process is calculated in the base unit of measure (UOM). On
the Create Purchase Orders and Create Transfer Orders forms, the quantity specified in the Quantity column is
recalculated in the purchase UOM and displayed in the UOM column. For example, if ten stock items should be
purchased in one box, then the quantity of ten UOMs is converted to one box to be purchased.
 Implementing Order Management | 307

Specification of Vendors for a Stock Item

The Vendors tab of the Stock Items (IN202500) form contains a list of the vendors from which the selected item has
been or can be purchased, along with the settings of the item if it is purchased from the vendor. On this tab, you
can specify the following vendor-specific replenishment settings for the stock item:
• Lead Time (Days): The lead time required to ship the item from the vendor location to the warehouse.
• Add Lead Time (Days): The additional lead time required to ship the item from the vendor location to the
warehouse.
• Lot Size: The lot size in which the item can be purchased from this vendor. If you specify a value, the system
rounds up the order quantity for the Min./Max. replenishment method to the next integer that is divisible by
the lot size and rounded up.
• Min Order Freq. (Days): The minimum order frequency (the minimum number of days between two
successive orders).
• Min. Order Qty.: The minimum order quantity.
• Max. Order Qty.: The maximum order quantity.
• EOQ: The economic order quantity.

Configuration of Replenishment: Classes and Sources of Replenishment

As an early step of configuring replenishment, you must create at least one replenishment class for each type of
replenishment source that you will use. You will then specify replenishment classes for other entities you create
during configuration.

Creation of a Replenishment Class

You create replenishment classes by using the Replenishment Classes (IN208800) form; for each class, you specify
its name, description, and replenishment source.
As the replenishment source, you can select one of the following options:
• Drop-Shipment: No actual replenishment is performed for the item because it is sent directly from the
vendor to the customer. When you add the item to a sales order, the system automatically selects the Mark
for PO check box so that a purchase order of the Drop-Ship type can be created for the item. This option is
available only if the Drop Shipments feature is enabled on the Enable/Disable Features (CS100000) form.
• Manufacturing: The item will be manufactured to replenish its stock. The MRP Display (AM400000) form
shows stock items with this replenishment source for which production orders should be created.
• None: No replenishment is required. This option could be used, for example, for a warehouse that is closing
its operations or if ISV integration is used.
• Purchase: Stock of the item will be replenished by purchase orders for the vendor when it is determined
by the replenishment settings and in the quantities calculated based on the replenishment settings. By
default, the default vendor specified on the Vendors tab of the Stock Items (IN202500) form will be used in
a purchase order, but you can select another vendor on the Item Warehouse Details (IN204500) or Prepare
Replenishment (IN508000) form. If replenishment of a stock item should be performed by purchasing
directly from a vendor to a warehouse, on the Replenishment tab of the Stock Items form, you leave the
Replenishment Warehouse box empty.
• Purchase to Order: No actual replenishment is performed for the stock item. When you add this stock item
to a sales order, the system automatically selects the Mark for PO check box so that a purchase order of the
Normal type can be created for this item. This option is available only if the Sales Order to Purchase Order
Link feature is enabled on the Enable/Disable Features form.
 Implementing Order Management | 308

• Transfer: For stock replenishment in a warehouse, the items will be transferred from a source warehouse.
This option is available only if the Multiple Warehouses feature is enabled on the Enable/Disable Features
form.

If you want to configure automatic calculation of replenishment parameters, you must use only
replenishment classes with the Purchase or Transfer replenishment source. For details, see
Configuration of Replenishment: Replenishment Methods and Configuration of Replenishment: Demand
Forecast Model.

Use of Replenishment Classes

You can specify a replenishment class for the following:
• Any warehouse: You specify the replenishment class in the Summary area of the Warehouses (IN204000)
form. If the class is not empty, the system copies this class to the Item Warehouse Details (IN204500) form for
the item–warehouse pair.
• Any item class: On the Replenishment tab of the Item Classes (IN201000) form, you can create a
list of replenishment classes that apply by default to stock items of the item class. Also, for each
replenishment class, you can specify the demand forecasting model and the settings to be used in
automatic replenishment.
• Any stock item: On the Replenishment tab of the Stock Items (IN202500) form, the system populates the
table with the replenishment classes and settings that were specified for the selected item class. The class
settings can be overridden.
• Any item–warehouse pair: On the Replenishment tab of the Item Warehouse Details (IN204500) form, you
select a replenishment class. By default, the settings that were specified for the class on the Replenishment
tab of the Warehouses form are inserted. If on the Warehouses form the class is empty, the system copies
this class from the Stock Items form. You can override most of these settings by selecting the Override
Replenishment Settings check box.

Configuration of Replenishment: Replenishment Methods

Replenishment methods are used to calculate the replenishment quantity. Acumatica ERP supports replenishment
at a fixed quantity and replenishment between the minimum and maximum quantities.
The Replenishment tab of the Stock Items (IN202500) form has a row for each replenishment class to be used to
replenish the stock of the item. Each row holds the settings associated with that class, including the replenishment
method and the replenishment source. The default option in the Method column is None, which indicates that no
replenishment will be performed. In each row, you specify either of the following replenishment methods to be
used for the item with the source selected in the row:
• Min./Max.: You use this method to keep the stock level of an item at a particular warehouse between the
specified minimum and maximum quantities. If you are using the Moving Average demand forecast model,
the system calculates the demand for a specific future period based on historical sales data. For details, see
the following section and Configuration of Replenishment: Demand Forecast Model.
• Fixed Reorder Qty: You use this method to replenish the stock of an item with a fixed quantity each time it
falls below the reorder point. For details, see the Item Replenishment with a Fixed Quantity section below.
The system uses the specified method to calculate the quantities required to replenish the stock of the item,
based on the replenishment parameters that are defined on the Replenishment tab of the Item Warehouse Details
(IN204500) form.
 Implementing Order Management | 309

Item Replenishment Within the Specified Quantity Range

When you select the Min./Max. method in a row of the Replenishment tab of the Stock Items (IN202500) form, you
specify the following settings in the row:
• Max Qty.: The maximum stock quantity for the item that should be at the warehouse.
• Safety Stock: The additional stock of the item that is maintained to avoid stockouts. You should specify
a safety stock value if there are fluctuations in demand and supply. Because safety stock is not used in
replenishment calculation for this method, you can add the maximum quantity of the safety stock to the
Max. Qty. column and the reorder point quantity to the Reorder Point column if you want to increase the
reorder point to the safety stock level.
• Reorder Point: With this method, the system uses the reorder point quantity rather than a minimum
quantity. If the available stock is below this level, you should replenish your stock to avoid stockouts. You
calculate a reorder point with safety stock by multiplying the daily average usage of stock by the lead time
(the time when the product is being shipped from the vendor location to your company) and adding the
amount of safety stock that you keep.
The Max Qty., Safety Stock, and Reorder Point settings are copied from the Stock Items form to the Item
Warehouse Details (IN204500) form. For the calculation of replenishment quantity, the system uses these quantities
from the Item Warehouse Details form. You can review and change these quantities before the calculation of the
replenishment quantity for a stock item.
On the Prepare Replenishment (IN508000) form, the system uses the following formula to calculate the
replenishment quantity in the Qty. To Process column for a stock item.

Qty. to Process = Max. Qty. - (Qty. on Hand - Qty. on Location Not Available + Qty. on
Supply + (Qty. Replanned - Qty. on Demand))

The formula includes the following quantities:

• Max. Quantity: The maximum quantity that is specified in the Max. Qty. box on the Replenishment tab
(Replenishment Parameters section) of the Item Warehouse Details form.

The system uses the quantity for calculation from the Item Warehouse Details form, though
these quantities are also specified for each row on the Replenishment tab of the Stock Items
form.

• Qty. on Hand: The quantity on hand, which is specified in the On Hand box (Summary area) of Inventory
Allocation Details (IN402000) form.
• Qty. on Location Not Available: The quantity on location that is not available, which is specified
in the On Loc. Not Available box (Summary area) of the Inventory Allocation Details form.
• Qty. on Supply: The quantity on supply, which is calculated based on the following plan types that
are listed on the Qty by Plan Type tab (Addition table) of the Inventory Allocation Details form: Purchase
Prepared, Purchase Orders, PO Receipts, In-Transit, IN Receipts, and Kit Assembly Supply.
• Qty. Replanned: The quantity that is replanned, which is specified in the row with the stock item in the
Qty. Replanned column of the table on the Prepare Replenishment form.
• Qty. on Demand: The quantity on demand, which is calculated as follows based on the option specified
in the Days of Supply box on the Replenishment tab of the Item Classes (IN201000) form for the applicable
item class:
• Hard Demand Only: The demand is calculated as Qty. SO Allocated + Qty. SO Shipped +
Qty. SO Back-Ordered.
This quantity is calculated based on the following plan types, which are listed on the Qty by Plan Type
tab of the Inventory Allocation Details form (Deduction table): SO Allocated, SO Shipped, and SO Back-
Ordered.
 Implementing Order Management | 310

• Item Class Settings: The demand is calculated based on the availability calculation rule specified for this
item class on the General tab of the Item Classes form.
The current stock level of a particular item is reflected by the Available Quantity setting in the Summary
area of the Inventory Allocation Details form. If the system detects that this level has reached or fallen below
the reorder point (which is specified in the Reorder Point box on the Item Warehouse Details form), it
calculates the quantity required to replenish the item stock according to the formula for the calculation of
the quantity in the Qty. To Process column on the Prepare Replenishment form.

Replenishment Calculation with the Min./Max. Method

On the Purchase Orders (PO301000) form, the quantities specified in a purchase order may differ from those
specified in the corresponding replenishment requests on the Create Purchase Orders (PO505000) form. The final
replenishment quantity for a stock item in a purchase order is calculated based on the settings on the Prepare
Replenishment (IN508000) form for the vendor that will fulfill the replenishment, and the value in the Qty. to
Process column for a table row is calculated as follows:
• If the requested quantity is less than the minimum order quantity specified in the Min. Order Qty. box on
the Vendors tab of the Stock Items (IN202500) form, the system uses the minimum order quantity.
• If the requested quantity exceeds the maximum order quantity specified in the Max. Order Qty. box on the
Vendors tab of the Stock Items form, the system uses the maximum order quantity.
• If the requested quantity is not divisible by the lot size specified in the Lot Size box on the Vendors tab of
the Stock Items form, this quantity is rounded up to the next integer, and that number of lots is ordered.

Item Replenishment with a Fixed Quantity

You specify the Fixed Reorder Qty method for an item when you want to replenish the stock of the item with a fixed
quantity each time it falls below the reorder point. To use this method for the replenishment of a stock item, on
the Replenishment tab of the Stock Items (IN202500) form, you select the Fixed Reorder Qty option in the Method
column. Then you specify the following parameters:
• Fixed quantity that may be either economic order quantity or economic reorder quantity:
• If the replenishment source of the row is Purchase, we recommend that you use as the fixed quantity
the economic order quantity (EOQ) determined by warehouse specialists for the item by estimating the
cost of ordering the item from a particular vendor. For each vendor from which the stock item can be
purchased, the EOQ setting is specified on the Vendor Inventory (PO201000) form. You can view the EOQ
values specified for all vendors of the item on the Vendors tab of the Stock Items form. The EOQ quantity
is equal to the specified vendor's EOQ for the stock item once this quantity determines that the available
quantity reaches or is lower than the reorder point.
• If the replenishment source of the row is Transfer, we recommend that you use the economic reorder
quantity (ERQ) specified for transfers that involve this stock item. This value represents the level of
inventory that minimizes the total transfer costs. The ERQ is specified in the Transfer ERQ column on the
Replenishment tab of the Item Classes (IN201000) and Stock Items forms. You can override the default
value of the Transfer ERQ box on the Item Warehouse Details (IN204500) form. The ERQ quantity is equal
to the specified transfer ERQ for the item once this quantity determines that the available quantity
reaches or is lower than the reorder point.
• Safety stock specified on the Stock Items form in the Safety Stock column of the Replenishment tab: This
is the additional stock of the item maintained to avoid stockouts. The safety stock is required if there are
fluctuations in demand and supply.
• Reorder point specified on the Stock Items form in the Reorder Point column of the Replenishment tab: For
the Fixed Reorder Qty method, the reorder point is specified as the safety stock plus the quantity that may
be required during the lead time.
With the Fixed Reorder Qty method, on the Prepare Replenishment (IN508000) form, the system updates the Qty.
to Process setting for the stock items listed on the form. Based on this quantity, a request for replenishment (for
 Implementing Order Management | 311

a quantity that is equal to the specified vendor's EOQ or the transfer ERQ) can be generated through the Prepare
Replenishment form.

Configuration of Replenishment: Demand Forecast Model

Replenishing the stock in time and in the proper quantities helps your business to retain customers while reducing
storage costs. To keep adequate stock of key items, you may need to predict the future demand of these items.
In Acumatica ERP, you can specify the Moving Average demand forecast model in the settings of an item to provide
the ability to predict its demand.

Setup of the Forecast Model to Predict Demand

In Acumatica ERP, you can use the moving average demand forecast model, to calculate the demand for a specific
future period based on historical sales data for recent consecutive periods. This demand forecast model works well
for items with specific trends in sales or with stable sales that are not subject to random significant fluctuations.
If you use the model for these items, you can reduce carrying costs, avoid stockouts, minimize excess or obsolete
inventory, and improve cash flow. For other items, you will generally not use a demand forecast model.
You can specify the moving average model at the following levels:
• At the item class level on the Replenishment tab of the Item Classes (IN201000) form: On this tab, you can
create a list of replenishment classes that are used by default for new stock items of the item class. For each
replenishment class, you can specify the settings to be used in automatic replenishment, including selecting
Moving Average as the Demand Forecast Model. A new stock item of this item class inherits the demand
forecast model selected for each replenishment class, but you can override the item class settings at the
stock item level.
• At the stock item level on the Replenishment tab of the Stock Items (IN202500) form. For any replenishment
class listed in the table, you can leave the Demand Forecast Model setting that was specified for the item
class or change it for the item.

The default option in the Demand Forecast Model column on the Item Classes and Stock Items forms
is None, which means that you can change the following replenishment settings only manually:
Transfer ERQ, Safety Stock, and Reorder Point.

When you select Moving Average as the Demand Forecast Model of replenishment on either form, you also specify
the following settings:
• Forecast Period: The type of time period to be used for the selection of historical data and calculation of
the demand. The following options are available: Quarter, Month, Week, and Day.
• Period to Analyze: The number of periods of historical data of the specified type to be used for calculation.
• Service Level: The service level, whose default value is 84%. The service level is the expected probability of
not hitting a stockout during the next replenishment cycle; thus, it is also the probability of not losing sales,
expressed as a percentage.
In the calculation of the Safety Stock setting on the Stock Items form, the system uses the inverse of the
normalized service level expressed as a percentage. It uses this formula: NORMS INV(Service Level).
With this formula, for a service level of 84%, the safety stock value is 1 and for a service level of 50%, the
safety stock is 0.

We recommend that you set the Service Level setting to 84% to avoid an increasing or
decreasing coefficient when the Safety Stock setting is calculated. A higher service level yields
a higher Safety Stock quantity.

• Seasonality: The seasonality, which can be used to normalize the replenishment quantity to accommodate
high and low sales seasons. For details, see the Use of Seasonality Settings for Forecasting section below.
 Implementing Order Management | 312

• Launch Date: The date that starts the time period when the specified replenishment settings will be in
effect.

Use of the Forecast Model to Predict Demand

The Moving Average forecast model uses the data available for the specified number of past periods to forecast
demand for the period immediately following the last period whose data is used in forecasting. If you select a
month as the forecast period and want to perform a forecast on the 15th day of the current month, the data from
the first 15 days of the month will not be used for forecasting; only data from full periods is used. The system
calculates the daily demand for the nearest future period based on daily sales in all days during the specified
number of prior periods.
As the actual data for the last forecast period becomes available, you can forecast the demand for the next period
by using the data of the previous periods shied by one period. This method smooths normalizes the data; the
more time periods to calculate the average demand are used, the more regular the data become.
On the Item Warehouse Details (IN204500) form, Lead Time Average is calculated for each combination of stock
item and preferred vendor based on all purchase orders of this vendor in the system. For details, see the formula
in the following section. The average lead time is computed as the average difference (on all purchase orders)
between the following dates:
• The date when the purchase order line is requested: This date is the Requested date on the Details tab of
the Purchase Orders (PO301000) form.
• The date of the receipt that includes this item: This date is in the Date box of the Summary area of the
Purchase Receipts (PO302000) form.

Automatic Calculation of Replenishment Parameters

By using the calculated average daily demand (daily sales), average lead time, and their standard deviation values,
the system computes the reorder point and safety stock used in automated replenishment. The reorder point is
calculated according to the following formula.

Reorder Point = (Average Daily Demand) * (Average Lead Time) + (Safety Stock)

To account for possible fluctuations in demand, which is based on daily sales, the system calculates the safety
stock. The following formula is used for this calculation.

Safety Stock = NORMSINV(Service Level) *

SQRT((Average Lead Time * STDEV(Daily Demand))^2 + (Average Daily
Demand * STDEV(Lead Time))^2)

The parameters used in these formulas are the following:

• Average Daily Demand is the average daily sales, calculated as the item quantity on all historical
data of sales orders in all the time periods used to analyze the data divided by the number of days. The
system includes all of the following documents in its sales order calculation: the quantity of sales orders,
the quantity of sales order returns with a negative sign, the quantity of transfer orders, and the quantity of
kit assembly components.
• STDEV(Daily Demand) is the standard deviation of daily sales quantity from the average quantity.
• Average Lead Time is the average lead time (in days). This time is calculated by using the following
formula.
Average Lead Time = SUM(Purchase Receipt Date - PO Line Requested Date) / (Number of
Purchase Receipt Lines)

The average lead time of an item–warehouse pair is specified in the Lead Time Average box of the
Replenishment tab of the Item Warehouse Details (IN204500) form. When the system calculates this lead
 Implementing Order Management | 313

time for the item in the warehouse, the Preferred Vendor (which is also specified on this tab) and the
applicable replenishment source may affect the calculation as follows:
• If a preferred vendor is specified for the item (or the vendor on the Item Warehouse Details was
overridden), the average lead time is calculated just for this vendor's documents.
• If no preferred vendor is specified for the item–warehouse pair, the system calculates the average lead
time for all the purchase orders created for this item.
• If Transfer is selected in the Replenishment Source box of the tab, the average lead time is set to the
Transfer Lead Time value specified on the Replenishment tab of the Item Classes (IN201000) form for
an item class of a stock item.
• If there is no historical data for the preferred vendor, the system does not use the formula above
to compute the average lead time. It instead copies the Vendor Lead Time (Days) value on the
Replenishment tab to the Lead Time Average box on that tab.
Number of Purchase Receipt Lines is the number of purchase receipt lines for which lead time is
calculated.
• STDEV(Lead Time) is the standard deviation of the lead time (in days) from the average value.
• NORMSINV(Service Level) is the service factor, which is calculated based on the service level
specified as a percentage.
The service level is used to optimize the safety stock level. Generally, the service level is specified only for
item classes, but it can be specified for each item and for each warehouse if needed.
Calculation of the daily demand forecast depends on whether the launch date is specified in the Launch Date box
on the Replenishment tab of the Stock Items (IN202500) form as follows:
• If the box is empty, the calculation period starts on the date of the first sale of an item (if this date belongs to
the current calculation period).
• If a launch date is specified, the calculation period starts on the launch date and is rounded to the selected
forecast period (such as a week or month).

For correct calculation of the demand forecast, we recommend that you specify the launch date in the
Launch Date box of the Stock Items form and select the beginning date of the forecast period close to
the launch date.

When the system has calculated replenishment parameters for stock items on the Calculate Replenishment
Parameters (IN508500) form, you apply these parameters to stock items on the Apply Replenishment Parameters
(IN509500) form. When the calculated replenishment parameters for stock items have been processed, the
Maximum Stock quantity is set to be equal to the Reorder Point quantity. You can manually increase the
Maximum Stock quantity. Depending on your company's business processes, you may need to optimize
the quantity of items in stock, taking into account the time and expenses for delivery of stock items to your
warehouses.
For an example of the calculation of the replenishment parameters for the moving average model, see Configuration
of Replenishment: Example of Parameter Calculation.

Use of Seasonality Settings for Forecasting

The sales of some products follow certain cycles or patterns. For example, the peak of ski sales is in winter. These
patterns in sales can be described as seasonality. A set of seasonality settings is a list of low and high seasons with a
factor assigned to each season. The factor reflects how sales decrease or increase in each of these specific seasons,
as compared to average sales volumes calculated over all time. You can determine the seasons for particular
products or groups of products with similar sales behavior and corresponding factors by analyzing sales data
spanning multiple financial years.
You define the settings of each seasonality on the Replenishment Seasonality (IN206600) form. The seasons for
one seasonality should not intersect. For date ranges not included in any season, the factor is 1.0 by default. A low
season for groups of products may span multiple financial periods or be contained in a single financial period.
 Implementing Order Management | 314

The system uses seasonality settings for forecasting as follows:

1. Normalizes the historical data available for the specified seasons. The sales volumes for each day of a
season are divided by the appropriate seasonality factor to calculate the sales quantities as though it were a
normal season.
2. Calculates the average daily sales quantity based on the historical data of the specified number of periods.
For seasons within the specified periods, the system uses the normalized data.

The standard deviation for the daily demand is calculated for actual sales data, not for
normalized data.

Update of Replenishment Parameters Using Forecast-Based Values

To calculate and use the updated replenishment parameters based on values from the forecast, you perform the
following general steps:
1. On the Calculate Replenishment Parameters (IN508500) form, you compute the average daily sales
and average lead time, and then calculate the following parameters, which are used in automated
replenishment: Max. Qty., Reorder Point, and Safety Stock.
2. On the Apply Replenishment Parameters (IN509500) form, you review the calculated parameter values
that are based on the forecast. You can then replace the old values of replenishment parameters with the
calculated ones or manually adjust the calculated parameters.
3. On the Prepare Replenishment (IN508000) form, you review the stock items that need to be replenished and
calculate replenishment quantities for these items.
4. On the Create Purchase Orders (IN505000) form, you generate purchase orders for items requiring
replenishment.

Configuration of Replenishment: Example of Parameter Calculation

The following example illustrates the calculation of replenishment parameters based on three months of historical
sales data.

Company Story
Suppose that on March 1, the ABC company first purchased a new gadget for bikers (the New Gadget stock item)
and sold it to a local sporting goods store, Best Sports. Best Sports decided to order 200 units during April and May.
ABC's purchasing manager, who is responsible for sales of the New Gadget item, has checked the item's settings
on the Stock Items (IN202500) form. On the Replenishment tab, the manager has specified the following
replenishment parameters during these three months of sales:
• Safety Stock: 20
• Reorder Point: 50
• Max Quantity: 200
Before extending the sales to other customers, the purchasing manager has decided to collect the relevant sales
data during the first three months and then calculate the replenishment parameters based on this data by using
the following settings on the Stock Items form:
• Forecast Type: Month
• Periods to Analyze: 3
• Launch Date: March 1
 Implementing Order Management | 315

Timeline of Events
The purchasing manager tracks the events related to New Gadget and collects the data as follows.

Table: Timeline of Purchasing, Receiving, and Replenishing New Gadget

Business Date Event Form

March  

March 1 ABC configures replenishment for New Gadget. Multiple forms. For details, see
Configuration of Replenishment:
General Information.

March 1 A purchase order for 200 units of New Gadget is created, Purchase Orders (PO301000)
approved, and sent to the Best Gadgets vendor.

March 15 The Best Sports store places a sales order for 200 units. Sales Orders (SO301000)

March 21 ABC receives 200 units of New Gadget. A purchase receipt Purchase Receipts (PO302000)
for 200 units is released.

March 22 A shipment to the Best Sports store is confirmed. Shipments (SO302000)

March 31 ABC collects the data: Offline event

• Total sales: 200 units
• Daily demand: 200 / 31 = 6.45
• Lead time: 20 days

April  

April 1 ABC prepares replenishment for New Gadget. Prepare Replenishment

(IN508000)

April 1 A purchase order for 200 units of New Gadget is created, Purchase Orders
approved, and sent to the New Gadget vendor.

April 15 The Best Sports store places a sales order for 200 units of Sales Orders
New Gadget.

April 18 ABC receives 200 units of New Gadget. A purchase receipt Purchase Receipts
for 200 units is created and then released.

April 22 A shipment to Best Sports is confirmed. Shipments

April 30 ABC collects the data: Offline event

• Total sales: 200 units
• Daily demand: 200 / 30 = 6.67
• Lead time: 17 days

May  

May 1 ABC prepares replenishment for New Gadget. Prepare Replenishment

 Implementing Order Management | 316

Business Date Event Form

May 1 A purchase order for 200 units of New Gadget is created, Purchase Orders
approved, and sent to the Best Gadgets vendor.

May 15 ABC receives 200 units of New Gadget. A purchase receipt Sales Orders
for 200 units is created and released.

May 15 Best Sports places a sales order for 200 units. Purchase Receipts

May 22 A shipment to Best Sports is confirmed. Shipments

May 31 ABC collects the data: Offline event

• Total sales: 200 units
• Daily demand: 200 / 31 = 6.45
• Lead time: 14 days

June  

June 1 ABC uses the collected data to calculate the replenish- Calculate Replenishment Para-
ment parameters, as described in the following section. meters (IN508500)

Calculation of Replenishment Parameters

On June 1, the purchasing manager initiates the calculation of replenishment parameters by using the Calculate
Replenishment Parameters (IN508500) form. The service level for the New Gadget stock item is specified as 90%.

The system calculates the replenishment parameters as follows.

Parameter Suggested Values Calculation Comment

Average Daily Demand 6.52 (200 + 200 + 200) / (31 + 30 The value is calculated
+ 31) according to the formula.
For details, see Configura-
tion of Replenishment: De-
mand Forecast Model.

Lead Time STDEV 0.10 STDEV(200 / 31, 200 / 30, Standard deviation of the
200 / 31) lead time (in days) from
the average value

Lead Time Average 17 (20 + 17 + 14 ) / 3 Item Warehouse Details

(IN204500) form

STDEV 2.45 STDEV(20, 17, 14) Lead time for standard

deviation of purchases

Service Level 90%   The value is copied from

the item on the Stock
Items (IN202500) form
 Implementing Order Management | 317

Parameter Suggested Values Calculation Comment

Normsinv (Service Level) 1.28   The value is calculated

according to the formula.
For details, see Configura-
tion of Replenishment: De-
mand Forecast Model.

Safety Stock 20.6 1.28 * SQRT((17 * 0.1) ^ 2 The value is copied from
+ (6.52 * 2.45) ^ 2) the item on the Stock
Items form.

Reorder Point 131.49 (17 * 6.52 + 20.6) The value is copied from
the item on the Stock
Items form.

Max. Quantity 131.49   The value is copied from

the item on the Stock
Items form.

As this simple example shows, the reorder point should be increased to 131 units, mostly because of a rather large
average lead time.

Configuration of Replenishment: Configuration Prerequisites

Before you start configuring replenishment in Acumatica ERP, you should be sure that the needed features have
been enabled, settings have been specified, and entities have been created, as described in the following sections.

Enabling the Needed Features

On the Enable/Disable Features (CS100000) form, the following features have been enabled:
• Inventory Replenishment
• Multiple Warehouse Locations if your company uses multiple warehouse locations
• Multiple Warehouses if your company replenishes inventory through transfers

Configuring the System

You need to make sure that the following tasks have been performed in Acumatica ERP before you start to
configure replenishment:
• Basic company settings have been configured, as described in Preparing an Instance for Implementation.
• At least the minimum general ledger, cash management, accounts payable, and accounts receivable
functionality has been implemented. These functional areas of Acumatica ERP do not require any change to
their configuration when replenishment is configured; however, this functionality should be implemented
before you set up replenishment. For details, see Company Without Branches.
• The basic configuration of order management with inventory has been performed, as described in Order
Management with Inventory.
• On the Warehouses (IN204000) form, the needed warehouses have been created.
• On the Item Classes (IN201000) form, the needed item classes have been created.
• On the Stock Items (IN202500) form, the needed stock items have been created.
 Implementing Order Management | 318

• Optional: On the Replenishment Seasonality (IN206600) form, the needed seasonalities have been created.

Identifiers for Replenishment Requests

Acumatica ERP uses a numbering sequence to automatically generate identifiers for new replenishment requests.
Replenishment requests are internal records that the system creates automatically when you process stock items
on the Prepare Replenishment (IN508000) form. Thus, this numbering sequence is for internal use only.
On the General tab of the Inventory Preferences (IN101000) form (Numbering Settings section), you can review the
numbering sequence that is used to generate identifiers for replenishment requests.

Configuration of Replenishment: To Configure Replenishment for an Item–

Warehouse Pair

In the following implementation activity, you will configure replenishment for an item–warehouse pair in
Acumatica ERP.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that the SweetLife Service and Equipment Sales Center branch of SweetLife Fruits & Jams company
provides repair services and stores the required spare parts for juicers. The branch orders these spare parts directly
from vendors and stores them in the EQUIPHOUSE warehouse.
Acting as purchasing manager Matt Parker, you need to configure the replenishment functionality to regularly
restock the spare parts that the company uses for juicer maintenance and repair. The branch should have no more
than 70 juicing screens in the EQUIPHOUSE warehouse, and purchasing managers should order juicing screens
when 30 items or fewer are le in stock. You also need to review the settings that the system will use to calculate
the replenishment of the juicing screens in the EQUIPHOUSE warehouse.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• The following features have been enabled on the Enable/Disable Features (CS100000) form in the Inventory
and Order Management group of features:
• Inventory Replenishment
• Multiple Warehouse Locations
• The basic configuration of order management with inventory has been performed, as described in Order
Management with Inventory.
• On the Warehouses (IN204000) form, the EQUIPHOUSE warehouse in the SweetLife Service and Equipment
Sales Center branch has been created.
• On the Item Classes (IN201000) form, the JCRSPRPRT (juicer spare parts) item class has been created for
juicer spare parts.

Process Overview
In this activity, you will do the following:
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1. On the Replenishment Classes (IN208800) form, create the SPAREPART replenishment class, which is used to
optimize the purchasing of juicer spare parts.
2. On the Warehouses (IN204000) form, specify the replenishment class for the EQUIPHOUSE warehouse.
3. On the Item Classes (IN201000) form, specify the replenishment settings for the JCRSPRPRT item class.
4. On the Stock Items (IN202500) form, create the JSCREEN stock item of the JCRSPRPRT item class.
5. On the Prepare Replenishment (IN508000) form, process the JSCREEN stock item.

System Preparation
Before you start configuring replenishment by purchase for an item‒warehouse pair, you should launch the
Acumatica ERP website and sign in to a company with the U100 dataset preloaded. You should sign in as
purchasing manager Matt Parker by using the parker username and the 123 password.
Sign in as purchasing manager by using the parker username and the provided password.

Step 1: Creating the Replenishment Class

To create the SPAREPART replenishment class, do the following:
1. On the Replenishment Classes (IN208800) form, add a new record.
2. In the Class ID box, type SPAREPART.
3. In the Description box, type Replenishment class for the purchase of juicer spare
parts.
4. In the Replenishment Source box, select Purchase.
With this setting, the demand for creation of purchase orders that include the items may be calculated on
the Prepare Replenishment (IN508000) form in the quantities that are calculated based on the replenishment
settings.
5. On the form toolbar, click Save.

Step 2: Specifying the Replenishment Class for the Warehouse

To specify the replenishment class for the EQUIPHOUSE warehouse, where spare parts for juicers are stocked, do
the following:
1. On the Warehouses (IN204000) form, open the EQUIPHOUSE record.
2. In the Replenishment Class box of the Summary area, select SPAREPART.

The system uses the replenishment class specified for a warehouse to replenish a stock item
at a warehouse where the item is stocked. It also shows this class in the Replenishment Class
box on the Item Warehouse Details (IN204500) form.

3. On the form toolbar, click Save.

Step 3: Specifying Replenishment Settings for the Item Class

Suppose that you need to add some new spare parts of the JCRSPRPRT (juicer spare parts) item class for juicers to
your inventory stock. You plan to replenish these stock items. Thus, you need to specify replenishment settings for
the item class so that the system copies these settings to each newly created stock item of the class.
To specify replenishment settings for the JCRSPRPRT item class, do the following:
1. On the Item Classes (IN201000) form, open the JCRSPRPRT item class.
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2. On the Replenishment tab, in the Demand Calculation box, make sure that Item Class Settings is specified.
With this setting, the demand for juicer spare parts will be calculated based on the availability calculation
rule specified for this item class on the General tab of this form.
3. On the table toolbar, click Add Row.
4. In the row, specify the following settings:
• Replenishment Class ID: SPAREPART
• Seasonality: NONE
• Source: Purchase
• Method: Min./Max.
With this method, the stock level of inventory items of the class at the warehouse where the items
are stocked will be maintained between the minimum and maximum quantities specified on the
Replenishment tab of the Stock Items (IN202500) form.
5. On the form toolbar, click Save.

Step 4: Creating a Stock Item of the Class

To create a stock item to represent the juicing screen, do the following:
1. On the Stock Items (IN202500) form, add a new record.
2. In the Summary area, specify the following settings:
• Inventory ID: JSCREEN
• Description: Juicing screen compatible with pro-series and commercial citrus
juicers
3. On the General tab, in the Item Class box, specify JCRSPRPRT.
Notice that the system has inserted the default settings of the stock item based on the item class settings
that you specified in the previous step on the Item Classes (IN201000) form. In the Warehouse Defaults
section of this tab, notice that EQUIPHOUSE has been inserted as the default warehouse.
4. On the Price/Cost tab, in the Default Price box, specify 80.
5. On the Vendors tab, do the following:
a. On the table toolbar, click Add Row.
b. In the Vendor ID column, select the SQUEEZO vendor.
6. On the form toolbar, click Save.
7. On the Replenishment tab, do the following:
a. Notice that the system has copied the row with the replenishment settings from the JCRSPRPRT item
class specified on the Item Classes form. It has inserted the following settings:
• Replenishment Class ID: SPAREPART
• Seasonality: NONE
• Source: Purchase
• Method: Min./Max.
b. In the row, specify the following settings:
• Reorder Point: 30.00
With this setting, when the stock of the JSCREEN item is less than 30, the item will be listed on the
Prepare Replenishment (IN508000) form.
• Max Qty.: 70.00
This is the maximum stock quantity of the JSCREEN item. This quantity will be used for the calculation
of replenishment parameters of the stock item in the EQUIPHOUSE warehouse.
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The system copies the Source, Reorder Point, and Max Qty. settings to the
Replenishment tab of the Item Warehouse Details (IN204500) form, where they are
inserted in the Replenishment Source, Reorder Point, and Max Qty. boxes and then uses
these settings for the calculation of the JSCREEN item's replenishment quantity in the
EQUIPHOUSE warehouse.

8. On the form toolbar, click Save.

Step 5: Reviewing Stock Items Requiring Replenishment

To make sure that the JSCREEN stock item requires replenishment in the EQUIPHOUSE warehouse and review the
item's settings, do the following:
1. Open the Prepare Replenishment (IN508000) form.
2. In the Selection area, specify the following settings:
• Warehouse: EQUIPHOUSE
• Purchase Date: Current date
• Me: Cleared
• Only Suggested Items: Selected
With this setting, only items that require replenishment are displayed in the table.
3. In the row for the JSCREEN stock item, make sure that the following settings are specified (see the following
screenshot):
• Reorder Point: 30
• Max Qty.: 70
• Replenishment Source: Purchase
• Qty. To Process: 70
This is the quantity to be replenished in the destination warehouse.

If you need to change the order of columns in any table, you can drag a column by its header to
the new place in the table.

Figure: The settings on the Prepare Replenishment form

You have reviewed the replenishment settings of the juicing screen stock item in the EQUIPHOUSE warehouse. In a
production situation, you would then select the needed items and prepare replenishment requests for the selected
stock items.
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Configuration of Replenishment: To Calculate and Apply Replenishment

Parameters

In the following implementation activity, you will set up automatic calculation of replenishment parameters for the
reordering of a stock item in a particular warehouse based on historical sales data.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that you are Matt Parker, a purchasing manager of the SweetLife Fruits & Jams company, and you want
the system to calculate replenishment parameters for reordering oranges based on the historical sales of the three
previous weeks. Also, winter is high season for oranges, and SweetLife sells more oranges in the winter than it does
in other seasons. You need to configure the system to calculate a demand forecast based on historical sales data
and seasonality settings.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• The following features have been enabled on the Enable/Disable Features (CS100000) form:
• Inventory Replenishment
• Multiple Warehouses
• The basic configuration of order management with inventory has been performed, as described in Order
Management with Inventory.
• On the Warehouses (IN204000) form, the WHOLESALE warehouse has been created.
• On the Stock Items (IN202500) form, the ORANGES stock item has been created.
• Also, the dataset includes sales orders on the Sales Orders (SO301000) form and purchase orders on the
Purchase Orders (PO301000) form for the previous three weeks.

Process Overview
In this activity, you will do the following:
1. On the Replenishment Seasonality (IN206600) form, create the HIGHSEASON replenishment seasonality.
2. On the Stock Items (IN202500) form, specify the replenishment settings for the ORANGES stock item.
3. On the Calculate Replenishment Parameters (IN508500) form, calculate the replenishment parameters for the
ORANGES stock item in the WHOLESALE warehouse.
4. On the Apply Replenishment Parameters (IN509500) form, apply the calculated parameters to the ORANGES
stock item in the WHOLESALE warehouse.

System Preparation
Before you start setting up the calculation of replenishment parameters, you should do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. You should
sign in as purchasing manager Matt Parker with the parker username and the 123 password.
 Implementing Order Management | 323

2. Sign in as purchasing manager by using the parker username and the provided password.
3. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to 1/30/2023. If a different date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar.
4. On the Company and Branch Selection menu, in the top pane of the Acumatica ERP screen, make sure the
SweetLife Head Office and Wholesale Center branch is selected.

Step 1: Creating the Replenishment Seasonality

To create a seasonality for SweetLife's high-purchase season for citrus fruits, do the following:
1. On the Replenishment Seasonality (IN206600) form, add a new record.
2. In the Summary area, specify the following settings:
• Seasonality ID: HIGHSEASON
• Description: High season for citrus fruits
• Calendar: MAIN
3. On the table toolbar, click Add Row.
4. In the added row, specify the following setting:
• Active: Selected
• Season Start Date: 11/1/2022
• Season End Date: 2/28/2023
• Factor: 3
This factor shows the increase of sales of oranges in the high-purchase season, that is, three times
increase in sales.
5. On the form toolbar, click Save.

Step 2: Specifying Replenishment Settings

To specify the settings that will be used to calculate replenishment parameters for oranges based on the moving
average model of demand forecasting, do the following:
1. On the Stock Items (IN202500) form, open the ORANGES item.
2. On the Replenishment tab, in the only table row, modify the replenishment settings as follows:
• Seasonality: HIGHSEASON
• Demand Forecast Model: Moving Average
• Forecast Period Type: Week
• Periods to Analyze: 3
3. In the Service Level (%) column, notice that 84 is specified. In Acumatica ERP, 84% is considered the
optimal service level because in general, it gives a company the ability to keep a balance between
opportunity costs and operation costs for inventory management. The Safety Stock Suggested setting
on the Apply Replenishment Parameters (IN509500) form will be calculated by using the service level. For
details, see Configuration of Replenishment: Demand Forecast Model.
4. On the form toolbar, click Save.

With these settings, during the calculation of the replenishment parameters for oranges, the system will analyze the
three previous weeks of historical purchase and sales data.
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Step 3: Calculating the Replenishment Parameters

To calculate replenishment parameters for oranges in the WHOLESALE warehouse, do the following:
1. Open the Calculate Replenishment Parameters (IN508500) form.
2. In the Selection area, specify the following settings:
• Forecast Date: 1/30/2023
• Action: Calculate
• Warehouse: WHOLESALE
• Seasonality: HIGHSEASON
3. In the table, select the unlabeled check box in the row with the ORANGES item.
4. On the form toolbar, click Process. The Processing dialog box opens, showing the progress and then the
results. The system has calculated the replenishment parameters for oranges in the WHOLESALE warehouse
based on the historical sales data of the three previous weeks.
5. Close the Processing dialog box. Notice that the row with the ORANGES stock item is no longer displayed in
the table.

Step 4: Applying Replenishment Parameters to the Stock Item

To apply the calculated replenishment parameters to the ORANGES stock item in the WHOLESALE warehouse and
adjust these parameters, do the following:
1. On the Apply Replenishment Parameters (IN509500) form, select the WHOLESALE warehouse. In the only
table row, review the replenishment parameters that the system has calculated for the ORANGES item,
which should be the following:
• Safety Stock Suggested: 41.81
• Reorder Point Suggested: 127.10
• Max. Qty. Suggested: 127.10
• Daily Demand Forecast: 24.76
• Lead Time Average: 3.44
This setting shows that on average, it takes 3.44 days to ship the item from the default vendor's location
to the WHOLESALE warehouse.

The values of replenishment parameters depend on the calculation date and the purchase
and sales documents that have been entered into the system. (For details, see Configuration of
Replenishment: Demand Forecast Model.) You may see different values if you select a different
calculation date or your system has a different set of purchase and sales documents than
those in the initial U100 dataset.

2. In this row, select the check box in the unlabeled column.

3. On the form toolbar, click Process. The Processing dialog box opens, showing the progress and then the
results.
4. Close the Processing dialog box. Notice that the row with the ORANGES stock item is no longer displayed in
the table.
5. Open the Item Warehouse Details (IN204500) form.
6. In the Selection area, specify the following settings:
• Inventory ID: ORANGES
• Warehouse: WHOLESALE
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7. In the Replenishment Parameters section of the Replenishment tab, make sure that the system has
inserted the values it calculated for the ORANGES item in the WHOLESALE warehouse, which should be the
following:
• Safety Stock: 41.81
• Reorder Point: 127.10
• Max. Qty. : 127.10

The system sets the maximum stock quantity to the reorder point quantity. You can manually
increase the maximum stock quantity if you need to optimize the quantity of items in
stock while taking into account the time and expenses for delivery of stock items to your
warehouses. For details, see Configuration of Replenishment: Demand Forecast Model.

8. Suppose that you want to round the first two values to the nearest ten and increase the maximum stock
quantity. Adjust the replenishment parameters as follows:
• Safety Stock: 40
• Reorder Point: 130
• Max Qty.: 200
9. On the form toolbar, click Save.

You have calculated, applied, and adjusted the replenishment parameters for the replenishment of oranges in the
high season in the WHOLESALE warehouse.

Purchase Requisitions

This chapter describes the minimum configuration of the purchase requisitions functionality that is required for
Acumatica ERP users to process requisitions. A purchase requisition may be based on external or internal purchase
requests or may have no requests.

Purchase Requisition Configuration: General Information

By using purchase requisitions in Acumatica ERP, your company can optimize its purchasing process. With this
functionality, you can purchase stock items from the most appropriate vendors at the best possible price and time
and in the right quantities.
In a production environment, before you configure purchase requisitions, you need to perform broader
Acumatica ERP implementation, which includes enabling features and specifying the basic settings for other basic
functionality: the general ledger, cash management, accounts payable (including defining vendors), accounts
receivable (including defining customers), and order management with inventory.

Learning Objectives
In this chapter, you will do the following:
In this lesson, you will do the following:
• Become familiar with the general workflow of the purchase requisition setup
• Learn about request classes
• Create a request class
• Configure budget validation for purchase requests of a class
 Implementing Order Management | 326

Applicable Scenarios
You may need to learn how to configure purchase requisitions if your organization wants to optimize its purchasing
processes.

Setup of Purchase Requisition Functionality

To use the functionality that supports purchase requisitions, you need to be sure the Purchase Requisitions feature
is enabled on the Enable/Disable Features (CS100000) form. You should also determine how your company will use
the purchase requisition functionality, including the following factors:
• Whether your users will enter requests from customers and employees into the system. Requisitions can
then be created based on these requests or entered directly.
• Which type of requests you expect to be entered most oen: internal requests of stock items needed by
employees, or customer requests of stock items they want to purchase from your company.
• Whether approvals will be required (and under what conditions, if applicable) for requests and for
requisitions.
• Whether you want to validate any requests against a budget defined in the system.
You use the following sections of the Purchase Requisitions Preferences (RQ101000) form to specify settings that
determine how the functionality is used:
• Request Settings section: You specify the numbering sequence to be used for requests and the number
of months they will be retained in the system. If your company will set up approval of requests, you also
specify the assignment map that will be used to assign requests to approvers. (This map must be created in
the system before you can specify it.)
• Requisition Settings section: You specify the numbering sequence to be used for requisitions and the
number of months they will be kept in the system. If your company will set up approval of requisitions, you
also specify the needed assignment map. (This map must be created in the system in advance.)
If your users will enter purchase requests and later add stock items from requests to each requisition, you
can select the Merge Lines by Default check box to have the system merge lines for the same stock items
from all the requests in a particular requisition.
For details about the workflow of processing these documents, see Processing Purchase Requests and
Requisitions.
• Requisition Order Settings section: You specify the default sales order types that will be used for the
following documents that can be created for a requisition: quotes and sales orders. You can also indicate
whether a purchase order created from a requisition has the On Hold status by default.
• Other Settings section: You specify the budget ledger that the system will use for budget validation and the
time period for the calculation of the total cost of purchase requests.
Also, you can specify the default request class to be inserted when a request is created on the Requests
(RQ301000) form. This can be a request class defined for customer requests or for internal requests. (For
details about request classes, see the following section.) When the default request class is inserted for a
request, the system also inserts the default settings associated with the class. Specifying this default class
may be useful if a particular request class is expected to be used far more than the others.

Creation of Request Classes

A request class is an entity in Acumatica ERP that contains the general settings of requests of a particular type.
When you create a request class on the Request Classes (RQ201000) form, you can specify the following settings:
• What the promised lead time is: In the Promised Lead Time (Days) box (Summary area), you specify the
number of days within which a request of the class should be fulfilled.
• Whether requests of the class are external or internal: An external request contains items requested by
a particular customer of your organization. To indicate that the request class will be used for external
 Implementing Order Management | 327

requests, you select the Customer Request check box in the Summary area. Internal requests are initiated
by employees of your organization and contain items that the employees need in their work.
• Whether the items from a request of the class can be divided among multiple vendors: If a request contains
multiple items, you can order these items from multiple vendors if one vendor cannot fulfill the entire
request or if another vendor has lower prices for particular items. You select the Allow Multiple Vendors
per Request check box in the Summary area to indicate that the system can suggest multiple vendors to
fulfill the request.
• Which items are available for ordering in requests of this class: You can restrict the list of items that users
can add to the request during its creation to reduce the probability of users selecting the wrong items. To
do this, you select the Restrict Requested Items to the Specified List check box in the Summary area, and
you add the items to the list on the Item List tab.
• Whether the request must be validated against the budget: If you control expenses on particular items by
using budgets, you can set up budget validation on the GL Accounts tab by selecting Warning or Error in
the Budget Validation box (the default setting is None) and specifying an expense account in the Expense
Account box (and the corresponding subaccount, if applicable, in the Expense Sub. box).

Workflow of the Purchase Requisition Configuration

To configure purchase requisitions in Acumatica ERP, you perform the following general steps:
1. On the Enable/Disable Features (CS100000) form, you enable the Purchase Requisitions feature.
2. Optional: On the Request Classes (RQ201000) form, create each needed request class for internal requests
or external requests. You create request classes if users will first add stock items to purchase requests on the
Requests (RQ301000) form and then create a requisition based on these requests.
3. On the General tab of the Purchase Requisitions Preferences (RQ101000) form, you review (and modify, as
needed) the numbering sequences and required settings and save these settings in the system.
4. Optional: Configure budget validation, as described in Purchase Requisition Configuration: Setup of Budget
Validation for Internal Requests

Purchase Requisition Configuration: Setup of Budget Validation for Internal

Requests

If your company uses purchase requests, you can set up budget validation of purchase requests. This validation
helps your company prevent cost overruns of requested goods and services. Before you set up this validation, you
should make sure that the budgets have been created and released on the Budgets (GL302010) form.
The setup of budget validation for purchase requests includes the following tasks:
1. Defining the way the system will calculate the costs of items included in a purchase request: On the
Purchase Requisitions Preferences (RQ101000) form, in the Budget Ledger box of the General tab, you select
the budget ledger that the system will use for verification. In the Budget Calculation box, you can also
specify one of the following options:
• YTD Values: Calculates the total cost of purchase requests created from the beginning of the financial
year to the end of the current financial period
• PTD Values: Calculates the total cost of purchase requests created from the beginning of the financial
period
• Annual: Calculates the total cost of purchase requests created for the current calendar year
2. Turning on budget validation in the settings of each needed purchase request class: On the Request Classes
(RQ201000) form, you turn on budget validation by selecting one of the following options in the Budget
Validation box of the GL Accounts tab:
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• None (default): No budget validation will be performed. This option might be selected for a customer
request class, because internal budget validation is not applicable for these requests.
• Warning: A user will be able to save a purchase request of this class even if the requested amount
exceeds the budgeted amount. In this case, the system will display a warning.
• Error: A user will not be able to save a purchase request of this class with an amount that exceeds the
budgeted amount, and the system will display an error message.

Purchase Requisition Configuration: Configuration Prerequisites

Before you start configuring the purchase requisition functionality in Acumatica ERP, you should be sure that the
needed features have been enabled, settings have been specified, and entities have been created, as described in
the following sections.

Enabling the Needed Feature

On the Enable/Disable Features (CS100000) form, the Purchase Requisitions feature must be enabled.

Configuring the System

You need to make sure that the following tasks have been performed in Acumatica ERP before you begin to
configure purchase requisitions:
• Basic company settings have been configured, as described in Preparing an Instance for Implementation.
• At least the minimum general ledger, cash management, accounts payable, and accounts receivable
functionality has been implemented. These functional areas of Acumatica ERP do not require any change to
their configuration when replenishment is configured; however, this functionality should be implemented
before replenishment. For details, see Company Without Branches.
• The basic configuration of order management with inventory has been performed, as described in Order
Management with Inventory.

Purchase Requisition Configuration: To Create an External Request Class

In the following implementation activity, you will create an external request class. This type of class is designed for
customer requests—that is, requests for items that are needed by customers.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that the SweetLife Fruits & Jams company has a few customers who want to order exotic fruits for their
restaurants. SweetLife does not oen receive orders for these fruits from its customers, but it has vendors who can
sell these fruits, so it can satisfy customer requests for the fruits. Acting as purchasing manager Matt Parker, you
need to create a customer request class to provide default settings for requests for exotic fruits. You will then create
a request to see how the class settings affect the class.
 Implementing Order Management | 329

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• On the Enable/Disable Features (CS100000) form, the Purchase Requisitions feature has been enabled.
• On the Purchase Requisitions Preferences (RQ101000) form, the required settings have been specified.
• On the Customers (AR303000) form, the GOODFOOD customer has been created.

Process Overview
In this activity, you will do the following:
1. On the Request Classes (RQ201000) form, create an external request class.
2. On the Requests (RQ301000) form, create an external purchase request of the class.
3. On the Stock Items (IN202500) form, the following stock items have been created: DRAGONFR, COCONUTS,
and MANGOES.

System Preparation
Before you start creating an external purchase request class for customer requests, you should launch the
Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. You sign in as purchasing
manager Matt Parker by using the parker username and the 123 password.

Step 1: Creating the External Request Class

To create an external purchase request class for requests for exotic fruit, do the following:
1. On the Request Classes (RQ201000) form, add a new record.
2. In the Summary area, specify the following settings:
a. Class: EXOTICFR
b. Description: Customer requests for exotic fruits
c. Promised Lead Time (Days): 2
d. Customer Request: Selected.
This check box is selected to indicate that this is an external request class.
e. Allow Multiple Vendors per Request: Selected
f. Restrict Requested Items to the Specified List: Selected
3. On the Item List tab, add rows for items with the following inventory IDs:
• DRAGONFR
• COCONUTS
• MANGOES
4. On the form toolbar, click Save.

Step 2: Creating a Purchase Request of the Class

To create a purchase request of the EXOTICFR class, do the following:
1. On the Requests (RQ301000) form, add a new record.
 Implementing Order Management | 330

2. In the Summary area, specify the following settings:

a. Request Class: EXOTICFR
b. Requested By: GOODFOOD
Because a customer request class was selected, the customers defined in the system are available for
selection in this box, and you can select the customer that requested the items.
c. Description: Order for mangoes
3. On the Details tab, do the following:
a. On the table toolbar, click Add Row.
b. In the Inventory ID column, select MANGOES. Notice that only three stock items are available for
selection in the lookup table because only these items are listed on the Request Classes (RQ201000)
form for the EXOTICFR request class.
c. In the Order Qty. box, specify 10.
4. On the form toolbar, click Save.

You have created a purchase request of the EXOTICFR class for the GOODFOOD customer.

Purchase Requisition Configuration: To Set Up Budget Validation for Internal

Requests

In the following implementation activity, you will configure budget validation for purchase requests of an internal
request class.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that the SweetLife Fruits & Jams company needs computers and computer accessories for its employees.
The company has a budget limitation of $1500 per month for computers and accessories.
Acting as purchasing manager Matt Parker, you need to create an internal request class and include a limited
number of stock items in the class. Also, you need to set up budget validation for the requests of the class. You will
then create an internal purchase request of the class and validate it against the budget.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• On the Enable/Disable Features (CS100000) form, the Purchase Requisitions feature has been enabled.
• On the Budgets (GL302010) form, the budget has been created and released.
• On the Purchase Requisitions Preferences (RQ101000) form, the required settings, budget ledger, and budget
calculation settings have been specified.
• On the Employees (EP203000) form, the Matt Parker employee has been created and associated with the
parker user account.
 Implementing Order Management | 331

Process Overview
In this activity, you will do the following:
1. On the Request Classes (RQ201000) form, create an internal purchase request class.
2. On the Requests (RQ301000) form, create an internal purchase request of the class.

System Preparation
Before you start creating an internal purchase request class, you should launch the Acumatica ERP website, and
sign in to a company with the U100 dataset preloaded. You sign in as purchasing manager Matt Parker by using the
parker username and the 123 password.

Step 1: Creating the Internal Purchase Request Class

To create the internal purchase request class for the requests for computers and accessories, do the following:
1. On the Request Classes (RQ201000) form, add a new record.
2. In the Summary area, specify the following settings:
a. Class: INTCOMP
b. Description: Internal requests for computers and accessories
c. Promised Lead Time (Days): 3
d. Customer Request: Cleared
You leave this check box cleared because you are creating an internal request class.
e. Allow Multiple Vendors per Request: Selected
f. Restrict Requested Items to the Specified List: Selected
3. On the Item List tab, add rows for items with the following inventory IDs:
• LAPTOP15
• MONITOR24
• KEYBOARD
4. On the form toolbar, click Save.

Step 2: Configuring Budget Validation for the Request Class

To configure budget validation for the internal purchase request class, do the following:
1. While you are still viewing the INTCOMP purchase request class on the Request Classes (RQ201000) form, on
the GL Accounts tab, specify the following settings:
a. Budget Validation: Warning
b. Use Expense Account From: Request Class
c. Expense Account: 60000 - Purchase Expenses
2. On the form toolbar, click Save.

Step 3: Creating a Purchase Request and Validating It Against the Budget

To create an internal purchase request of the INTCOMP class, do the following:
 Implementing Order Management | 332

1. On the Requests (RQ301000) form, add a new record.

2. In the Summary area, specify the following settings:
a. Request Class: INTCOMP
Notice that when you select this class, the Requested By box is filled in with EP0000056 - Matt Parker, the
employee ID associated with the parker user account. Because an internal request class was selected,
the company's employees are available for selection in the Requested By box, and if the signed-in user is
associated with an employee account, the employee ID is selected by default.
b. Description: Request for a laptop
3. On the Details tab, do the following:
a. On the table toolbar, click Add Row.
b. In the Inventory ID column, select LAPTOP15. Notice that only three stock items are available for
selection in the lookup table because only these items are listed on the Request Classes (RQ201000)
form for the INTCOMP request class.
c. In the Order Qty. column, specify 1.
d. On the form toolbar, click Save
On the Budget tab, notice that a warning has appeared next to the tab's title and in the Budget Amount
box. This means that the total amount of the request has exceeded the budget in the current month.
A user can save a request with this warning, but according to the company's business processes, the
request may not be fulfilled.

You have configured budget validation for purchase requests of the class.
 Implementing Customer Relationship Management | 333

Implementing Customer Relationship Management

This chapter describes the minimum required configuration of customer relationship management functionality in
Acumatica ERP.

Basic Customer Relationship Management

In this chapter, you will find information about configuring the basic customer relationship management (CRM)
functionality in Acumatica ERP.

Configuring CRM Functionality: General Information

You can perform the initial configuration of customer relationship management (CRM) functionality in Acumatica
ERP when a basic company has been configured in the system. This initial configuration includes enabling the
required features and specifying the required settings to be used in the system for the CRM functionality. In a
production environment, before you configure CRM, you perform broader Acumatica ERP implementation, which
includes enabling features and specifying the basic settings for the general ledger, cash management, accounts
payable, and accounts receivable functionality.
This topic provides an overview of the tasks required for the initial Acumatica ERP implementation in a production
environment and shows the initial configuration of CRM functionality.

Learning Objectives
In this chapter, you will do the following:
• Develop an understanding of the tasks that must be performed for initial configuration of an Acumatica ERP
instance
• Become familiar with the features supporting CRM functionality
• View the numbering sequences for the CRM entities: opportunities, cases, mass emails, marketing
campaigns, and sales quotes
• Enable the feature required for the setup of CRM functionality
• Review and save the predefined basic settings for the CRM functionality

Applicable Scenarios
You may need to learn how to configure CRM functionality in scenarios that include the following:
• You are an implementation consultant who has performed other Acumatica ERP implementations and
needs to configure the system so that users can start using the CRM functionality.
• You are an implementation consultant who is new to Acumatica ERP and needs to learn how to configure
CRM functionality.

Customer Relationship Management in Acumatica ERP

Customer relationship management functionality helps companies manage their interactions with current and
potential customers to effectively identify and address customers' needs, and build strong mutual relationships.
 Implementing Customer Relationship Management | 334

Acumatica ERP provides tools for process automation, data management, and reporting for marketing, sales, and
customer support teams. You can easily customize the CRM functionality to fit your company’s business goals,
ensure higher profitability, and streamline your marketing, sales, and customer support processes.
With the CRM functionality, your marketing personnel can easily create leads, validate leads for duplicates, assign
leads to owners, qualify leads, manage and send mass emails, and manage leads, marketing lists, and marketing
campaigns.
By using the CRM functionality, your sales personnel can easily qualify leads, assign leads to owners, create
business accounts and contacts, validate contacts and business accounts for duplicates, and manage leads,
marketing lists, marketing campaigns, and opportunities.
Finally, the CRM functionality gives your customer support personnel the ability to create support cases, assign
cases to owners, and process cases.

Workflow of the CRM Implementation

Aer you install a new instance of Acumatica ERP, the system needs to be prepared for further implementation.
When you sign in to a new Acumatica ERP instance, the only form you can access is the Enable/Disable Features
(CS100000) form, which you use to enable the needed features, in accordance with your company’s license.
To prepare the system for CRM implementation, you perform the following general steps:
1. You configure basic company settings. For details, see Preparing an Instance for Implementation.
2. You implement at least the minimum general ledger, cash management, accounts payable, and accounts
receivable functionality. These functional areas of Acumatica ERP do not require any change to their
configuration when CRM is implemented; however, the functionality to be integrated with CRM should be
implemented before CRM. For details, see Company Without Branches.
3. You configure the system email accounts to be used for CRM in your company. For details, see System Email
Accounts.
4. On the Enable/Disable Features form, you enable the Customer Management feature and the needed
features in this group of features. For details, see Features for Setting Up CRM Functionality.
5. On the Customer Management Preferences (CR101000) form, you review (or review and modify, as needed)
the numbering sequences and save these settings in the system. For details, see Selection of Numbering
Sequences.

Features for Setting Up CRM Functionality

As mentioned in the previous section, at minimum, you need to enable the Customer Management feature on the
Enable/Disable Features (CS100000) form in order to use basic CRM functionality. Enabling this feature gives you the
ability to also enable the following additional features:
• Duplicate Validation, which provides the duplicate validation functionality that you can use to set up the
validation of lead, business account, and contact records for duplicates.
• Case Management, which gives users the ability to create, assign, and resolve cases.
• Sales Quotes, which gives users the ability to create opportunity-based sales quotes, send them to
customers for review, and create sales orders and invoices based on these quotes.
• Address Lookup Integration, which gives users the ability to use the address enrichment functionality.
With this feature enabled, integration with a web map service can be set up and users can add new
addresses, update existing addresses, and fill in missing address information on the forms that have
address information.

In the production environment, aer the features are enabled, you have to activate the Acumatica
ERP license by using the Activate License (SM201510) form. Each particular feature may be subject to
additional licensing; please consult the Acumatica ERP sales policy for details.
 Implementing Customer Relationship Management | 335

You can also use the following features, which enhance the CRM functionality:
• The Monitoring & Automation group of features, which provides such capabilities as using approval maps,
tracking user activities in the system, restricting access to particular system records for groups of users, and
configuring automatic processing of documents.
• The Customer Portal group of features, which gives users the ability to use the Acumatica Self-Service Portal.
• Case Management on Portal in the Customer Portal group of features, which your organization can use to
give your customers the ability to add cases and track case processing through the Self-Service Portal.

This feature can be enabled only if the Case Management feature is enabled.

For more information, see Preparing an Instance: Acumatica ERP Features.

Selection of Numbering Sequences

Acumatica ERP uses numbering sequences to automatically generate identifiers (IDs) for new records of a certain
type when they are created either manually by users or automatically by the system. Numbering sequences
are used to generate IDs for records used in CRM, such as opportunities, sales quotes, and cases. You can use
predefined numbering sequences or create new ones if needed. For more information, see Use of Numbering
Sequences.

On the General tab of the Customer Management Preferences (CR101000) form (Numbering Sequences section),
you can review or modify the specified numbering sequences, which are used to generate identifiers for the
following types of records:
• Opportunities
• Cases
• Mass emails
• Marketing campaigns
• Sales quotes
To review the settings of any of the specified numbering sequences, you can click the Edit button right of the
applicable box; the system opens the Numbering Sequences (CS201010) form, where you can make any needed
changes to the numbering sequence and save your changes.
On the Segmented Keys (CS202000) form, you can review or modify the numbering sequence used for business
accounts, if applicable. The identifiers assigned to business accounts are determined by the BIZACCT segmented
key, which is defined on the Segmented Keys form and is used for configuring the general structure of identifiers for
business accounts, including the identifier length, the number of segments, and the type of segments. If an auto-
numbered segment is used, a numbering sequence can be specified for it.

When you have finished reviewing the numbering sequences, you must save these settings on the
Customer Management Preferences form by clicking Save on the form toolbar, even if you have made
no changes on the form. Aer you have saved these settings, you can start using the CRM functionality
in Acumatica ERP.

Configuring CRM Functionality: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for the
customer relationship management (CRM) functionality in Acumatica ERP, and to specify settings that affect the
CRM workflows.
 Implementing Customer Relationship Management | 336

Mandatory Configuration
To ensure that the basic CRM configuration has been implemented properly, make sure that the necessary features
have been enabled and settings have been specified, as described in the following checklist.

Form Criteria to Check

Multiple forms The following tasks have been performed:

1. The initial configuration of the instance has been performed,
as described in Preparing an Instance for Implementation
2. The minimum company settings have been specified and
at least the minimum required functionality has been im-
plemented for all other functional areas to be integrated
with the CRM functionality as described in Company Without
Branches: General Information
3. The system email accounts to be used for CRM have been
configured, as described in System Email Accounts.

Enable/Disable Features (CS100000) The Customer Management feature has been enabled. This fea-
ture provides the customer relationship management function-
ality, including lead and customer tracking, as well as the han-
dling of sales opportunities, contacts, marketing lists, and mar-
keting campaigns.

Customer Management Preferences The predefined settings in the Numbering Sequences section
(CR101000) of the General tab have been saved.

Table: Recommended Configuration

To give users the abilities to validate leads, contacts, and business accounts for duplicates, use the automatic
processing of documents, use the integration with web map services, and group records that share common
characteristics, you should specify and save the recommended settings listed in the following table.

Form Criteria to Check

Enable/Disable Features (CS100000) The following features have been enabled:

• Duplicate Validation in the Customer Management group of
features: Provides the duplicate validation functionality,
which you can use to set up and perform automatic validation
of lead and contact records for duplicates. For an example of
configuration, see Duplicate Validation.
• Sales Quotes in the Customer Management group of features:
Gives you the ability to create opportunity-based sales quotes,
send them to customers for review, and create sales orders
and invoices based on these quotes.
• Address Lookup Integration in the Customer Management
group of features: Gives you the ability to use the address en-
richment functionality. With this feature enabled, integration
with a web map service can be set up, and you can add new
addresses, update existing addresses, and fill in the missing
address information on the forms that have address informa-
tion. For details, see Integration with Web Map Services.
 Implementing Customer Relationship Management | 337

Form Criteria to Check

• Scheduled Processing in the Monitoring & Automation group of
features: Gives you the ability to create schedules for the au-
tomatic processing of documents. For details, see Scheduling
Automated Processing.

Lead Classes (CR207000) Lead classes with the necessary details and attributes have been
created.

Contact Classes (CR205000) Contact classes with the necessary details and attributes have
been created.

Business Account Classes (CR208000) Business account classes with the necessary details and attrib-
utes have been created.

Campaign Classes (CR202500) Campaign classes with the necessary details and attributes have
been created.

Opportunity Classes (CR209000) Opportunity classes with the necessary details and attributes
have been created.

Customer Management Preferences On the General tab (Data Entry Settings) section, numbering
(CR101000) sequences have been saved and classes with the necessary set-
tings have been specified.

Configuring CRM Functionality: Implementation Activity

In this implementation activity, you will learn how to perform initial configuration of the customer relationship
management (CRM) functionality in Acumatica ERP.

Story
Suppose that you, as the system administrator of the SweetLife Fruits & Jams company, need to configure the
minimum settings required for using the CRM functionality in the system.

System Preparation
Before you start performing initial configuration of the CRM functionality, sign in to a tenant with the out-of-the-box
company as a system administrator with the admin username.

Step 1: Enabling the Customer Management Feature

To enable the feature required for using CRM functionality, do the following:
1. Open the Enable/Disable Features (CS100000) form.
2. On the form toolbar, click Modify.
3. Select the check box le of the Customer Management feature.
4. On the form toolbar, click Enable.
 Implementing Customer Relationship Management | 338

Step 2: Saving the Settings Required for CRM Functionality

Among the customer relationship management preferences that can be tailored to the needs of your company, you
can specify the numbering sequences the system uses when assigning identifiers to records related to CRM.
To save the numbering sequence settings, which is a required step before you begin using CRM functionality, do the
following:
1. Open the Customer Management Preferences (CR101000) form.
2. On the General tab (Numbering Sequences section), make sure all the boxes contain the identifiers of the
respective predefined numbering sequences. (Although you will not change these numbering sequences
in this activity, different numbering sequences can be selected on this form, and any of the predefined
numbering sequences can be edited to fit your organization’s numbering preferences.)
3. On the form toolbar, click Save.

Duplicate Validation

In this chapter, you will find information about configuration of duplicate validation of leads, contacts, and
business accounts in Acumatica ERP.

Duplicate Validation: General Information

Acumatica ERP provides flexible tools for eliminating duplicate records. An implementation consultant or a system
administrator can configure duplicate validation for lead, contact, and business account records. To prevent the
creation of duplicate records, the system can validate leads, contacts, and business accounts for duplicates before
a user creates a new record in the system manually or imports a batch of new records to the system by using an
import scenario or API services. This topic provides general information about configuring duplicate validation in
Acumatica ERP.

Learning Objectives
In this chapter, you will learn how to do the following:
• Configure duplicate validation for leads, contacts, and business accounts
• Calculate validation scores (grams) for leads, contacts, and business accounts

Applicable Scenarios
You may want to configure duplicate validation in scenarios that include the following:
• You have initially implemented Acumatica ERP, the Customer Management feature is included in your
license, and you need to give users the ability to use the duplicate validation functionality.
• You need to change the current duplicate validation settings in the system.

Duplicate Validation in Acumatica ERP

When a new lead, contact, or business account is created in the system, Acumatica ERP can check a record for
duplicates automatically or at the request of the user. The system can check a record for duplicates on entry
(before the record is saved at least once) and prevent the creation of duplicate records. The system also checks the
 Implementing Customer Relationship Management | 339

changed record for duplicates and inserts Possible Duplicate in the Duplicate box of the saved record if at least one
possible duplicate was found.
Records can be validated for duplicates if the following setup tasks have been performed in the system:
1. The Duplicate Validation feature is enabled on the Enable/Disable Features (CS100000) form.
2. Default duplicate validation rules have been defined for each combination of record types, such as leads
and contacts, or contacts and business accounts, on the Duplicate Validation (CR103000) form. For details,
see Duplicate Validation: Rules.
3. Additional duplicate validation settings may also be specified on the Duplicate Validation form. For details,
see Record Validation for Duplicates: Implementation Checklist.
4. The calculation of grams, which are used for the calculation of validation scores, has been performed for
each contact, lead, or business account record on the Calculate Grams (CR503400) form. For details, see
Duplicate Validation: Calculation of Validation Scores.

Aer the setup tasks have been performed, users can validate individual records for duplicates and merge duplicate
records into one record, which involves updating the information in the target record (the record that a user wants
to keep as a result of the merge) and closing the duplicate record. Optionally, users can link the related leads,
contacts, and business accounts. As a result, the leads, contacts, and business accounts in the system are free of
duplication, which improves productivity for the personnel, who can now work with consistent and reliable data.
For details, see Record Validation for Duplicates: General Information.
A system administrator can validate multiple records for duplicates. For details, see Record Validation for Duplicates:
Mass-Validation of Records.

Duplicate Validation: Rules

The forms used to create lead, contact, and business account records use the same internal fields (and
corresponding UI elements) to hold the contact settings of an individual or company. You can specify your
organization’s rules for validating duplicate leads, contacts, and business accounts. Also, you can specify the
common fields to be used in this validation. For example, you can configure the system to compare only email
addresses, or you can set it up to compare multiple settings, such as email addresses, last names, and company
names.

Specification of Rules for Duplicate Validation

In Acumatica ERP, you can specify how the duplicate validation process is performed for leads, contacts, and
business accounts by using the Duplicate Validation (CR103000) form. In the Comparison pane of the form (Item
1 in the following screenshot), you select the pair of record types for which you want to specify the rules used for
duplicate validation. In the selected pair of record types, the first type indicates the type of record that is compared
with the record of the second type for duplication. In the right pane of the form (Item 2), you define the duplicate
validation rules for the selected pair of record types. You can define the same set of rules for each pair of record
types or specify different rules.
Consider the following example of the validation rules for the Lead to Lead pair of record types (also shown in the
following screenshot). These rules will determine how validation is performed when a new lead is created and the
system checks its field values against those of existing leads for duplicates.
 Implementing Customer Relationship Management | 340

Figure: Duplicate validation rules for lead to lead

For the selected pair of record types, you use the table in the right pane to list the fields whose values the system
will compare during the validation process, and the validation settings. You specify values in the following columns:
• Matching Field (see Item 3 in the screenshot above): A field to be used for duplicate validation.
• Score Weight (Item 4): The share that the field contributes to the total validation score if the compared field
values match. The total validation score of a pair of compared records is calculated as the sum of the score
weights of the fields whose values match. With the rules specified in the example shown in the screenshot,
if phone numbers match, the weight of 0.5 is computed, and if both last names and phone numbers match,
the weight of 2.5 (2.0 + 0.5) is calculated. The score weight value is selected from a range of numbers where
the maximum value is equal to the threshold value and the minimum value is greater than 0. The more
important the specified field, the higher its score weight.
• Transformation Rule (Item 5): The rule the system will use to transform the values of this field before
comparing them. You can specify one of the following options:
• None (default): The values in the fields are trimmed and transformed to lowercase before comparison.
The values are compared.
• Split Words: The values in the fields are trimmed and transformed to lowercase, and all special characters
are removed before comparison. The values are compared.

By default, the system considers spaces as the applicable dividers. If you want to use other
dividers, the set can be specified through a customization project.

• Domain Name: This option is used for the Web and Email fields. The system compares the only applicable
domain name, such as domain.com (the value aer @ for an email address, or the value aer www. for a
URL). For example, if the email address is [email protected], then only example.com will be used for
comparison.
• Create on Entry (Item 6): The rule the system will use to check duplicate settings for a matching field of
records when a record is saved for the first time. For each field, you select one of the following options:
• Allow (default; see Item 8): The system checks the value of this field for a newly created record to find
duplicates if the Validate on Entry check box (Item 13) in the Rules of Comparison section is manually
selected. In this case, however, the system will not display a warning message when a user saves the
newly created record; it will insert Possible Duplicate in the Duplicate box of the form used to create the
record.
• Warn (Item 9): If this option is selected and a user tries to create a record that has a duplicate value in this
field, the system inserts Possible Duplicate in the Duplicate box of the creation form of the record and
 Implementing Customer Relationship Management | 341

displays a warning message. The user can save the record or cancel record creation. During the running
of an import scenario, if the system creates a record that has a duplicate value in this field, the record is
saved without a warning message and the system inserts Possible Duplicate in the Duplicate box.
The system inserts a value in the Score Weight column (Item 4) of the row that is equal to the value in
the Validation Score Threshold box (Item 12); it also makes the Validate on Entry check box (Item 13)
(Rules of Comparison section) selected and unavailable for editing.
• Block (Item 7): If this option is selected, and a user tries to save a record that has the same value for this
field as an existing record has, the system prevents the creation of the duplicate record and shows an
error message.
The system makes the value in the Score Weight column (Item 4) of the row equal to the value in the
Validation Score Threshold box (Item 12) in the Rules of Comparison section. The Validate on Entry
check box (Item 13) becomes selected and unavailable for editing.
During the running of an import scenario, if the system creates a record that has a duplicate value in
this field, the record is not saved and the system shows an error message on the Import by Scenario
(SM206036) form.
Depending on the selected option for each of the listed fields, the system can allow or block the saving of a
new record. If the user selects the Allow or Warn option for all fields in the selected pair of record types, the
system will allow the new record to be saved. If the user selects the Block option for at least one of the fields,
the system will block the saving of the new record.

For a pair of record types, if any set of options is selected and if in an existing record, the user changes
the value of the validated field to a duplicate of the value in the other existing record, the system will
save the record and insert Possible Duplicate in the Duplicate box of the saved record.

Also, in the Validation Score Threshold box in the Rules of Comparison section of the right pane, you specify the
threshold value to be used to determine whether the compared records are possible duplicates.

For a particular pair of record types selected in the Comparison pane, the total score of the values
listed in the Score Weight column should be greater than or the same as the value in the Validation
Score Threshold box.

The interaction of the value in the Validation Score Threshold box with the validation settings in the table works
as follows: During duplicate validation of a record, the system compares the values for all fields listed in the table,
adds the Score Weight values for the field values that match, and then compares the total validation score to the
value specified in the Validation Score Threshold box. If the total validation score equals or exceeds this threshold
value, the compared records are considered possible duplicates.
With the settings shown in the screenshot above, if the email address of a new lead is the same as the email
address of the existing lead, because the Create on Entry value of the Email field is Block, the system prevents the
creation of a duplicate lead and shows an error message on the Leads (CR301000) form when a user tries to save
the lead. If the account name of a new lead is the same as the account name of an existing lead, the system inserts
Possible Duplicate in the Duplicate box of the Leads form and displays a warning message if a user tries to save the
lead.

Duplicate Validation: Calculation of Validation Scores

In Acumatica ERP, grams are used for the calculation of the validation score that is specified on the Duplicate
Validation (CR103000) form for each lead, contact, or business account. Each record has a number of settings—
such as Last Name, Email, and Account Name—that are common across these types of records. The gram value
assigned to a field of a particular record is calculated based on the total number of settings that are involved in the
calculation of the validation score.
 Implementing Customer Relationship Management | 342

As a rule, if the Duplicate Validation feature is enabled on the Enable/Disable Features (CS100000) form, validation
scores are calculated automatically.
You need to recalculate validation scores on the Calculate Grams (CR503400) form in the following cases:
• Validation rules—the rules to calculate the grams—have been changed for any pair of record types on the
Duplicate Validation form. If you change these rules and click Save, the system displays a warning dialog box
asking if you want to recalculate the validation scores. If you click Yes, the system saves the new settings
and opens the Calculate Grams form. You can recalculate the validation scores based on the new validation
rule for all records that are listed on the Calculate Grams form that is, records that have been validated using
previous validation rules. If you click No, the system closes the dialog box and saves the new settings; the
validation scores are not recalculated, and we recommend that you recalculate validation scores later.
• A batch of new records was imported into Acumatica ERP or manually created by users before the Duplicate
Validation feature was enabled.
On the Customer Management Preferences (CR101000) form, you can use the Normalize Validation Scores check
box on the General tab (Miscellaneous Settings section) to determine the way the system will calculate the
validation scores for a pair of record types. The validation score is calculated for a record as follows, depending on
the state of the Normalize Validation Scores check box:
• Selected: When a validation score is calculated for a record, the system checks whether the record fields
with score weights have values in the new record. If all the fields have values, the validation score is the total
sum of the grams (that is, the recalculated score weights specified in the Score Weight column of the table
on the Duplicate Validation form). If a field with a score weight in the new record is empty, the system sets the
score weight for this field to 0 and recalculates the score weights of the other populated fields. The fewer
populated fields, the higher the value of the recalculated score weights for other fields. In this case, the
sum of grams must be equal to the threshold value that is defined in the Validation Score Threshold box
on the Duplicate Validation form. For example, suppose that for the Lead to Lead pair of record types, score
weights are specified for two fields—Last Name and Email—and if the values in each of them are identical to
the values in the same fields in one of the existing records, the new record is a duplicate. Further suppose
that the score weight for each of them is 2.5 and the threshold is 5, and that in a new lead, only Last Name
was filled in. In this case, the system sets the grams for Email to 0 and for Last Name to 5. The validation
score is the sum of grams of both fields, so it is 5. The value of the validation score is equal to the value of
the threshold, and the system considers the record to be a duplicate only based on the matching of the last
name values.
• Cleared: The validation scores are calculated according to the duplicate validation rules specified for the
pair of records and do not depend on the number of empty fields that the system has checked for duplicates
in the record.

Duplicate Validation: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for duplicate
validation in Acumatica ERP, and to understand (and change, if needed) the settings that affect the processing
workflow.

Mandatory Configuration
We recommend that before you start validating records for duplicates, you make sure that the needed features
have been enabled, settings have been specified, and entities have been created, as summarized in the following
checklist.
 Implementing Customer Relationship Management | 343

Form Criteria to Check

Enable/Disable Features (CS100000) The following features have been enabled:

• Customer Management: Provides the customer relationship
management (CRM) functionality, including lead and cus-
tomer tracking, as well as the handling of sales opportuni-
ties, contacts, marketing lists, and campaigns
• Duplicate Validation in the Customer Management group of
features: Provides the duplicate validation functionality

Customer Management Preferences (CR101000) The numbering sequence settings have been specified and
saved to the system, as described in Basic Customer Relation-
ship Management.

Duplicate Validation (CR103000) The duplicate validation settings have been specified.

Recommended Configuration

To speed duplicate validation and minimize errors, you should specify and save the recommended settings listed in
the following table.

Form Criteria to Check

Duplicate Validation (CR103000) The Validate on Entry check box is selected for each com-
bination of record types on the Comparison pane. With this
check box selected, the system will validate each new lead,
contact, or business account when a new record is being cre-
ated and saved for the first time on the Leads (CR301000),
Contacts (CR302000), or Business Accounts (CR303000) form.

Other Settings That Affect the Workflow

You can affect the workflow of duplicate validation by specifying additional settings:
• To cause the system to perform duplicate validation processing more quickly—validating records and
calculating grams is handled in parallel mode and may be a time-consuming process—add the following key
to the web.config file located in the website folder.
<add key="ParallelProcessingDisabled" value="False" />

• To cause the system to validate the field values of each new lead, contact, or business account—such as
an email address or phone number—for duplication as soon as a user specifies these settings on the Leads
(CR301000), Contacts (CR302000), or Business Accounts (CR303000) form and tries to save the record for the
first time, select the Warn option for these fields in the Create on Entry column of the Duplicate Validation
(CR103000) form.
• To cause the system to prevent the creation of duplicate leads on the Leads form, duplicate contacts on
the Contacts form, or duplicate business accounts on the Business Accounts form, select the Block option
for each needed field in the Create on Entry column of the corresponding table on the Duplicate Validation
form.
• To cause the system to calculate validation scores according to the duplicate validation rules specified for
the pairs of records on the Duplicate Validation form and to keep the missing scores for empty fields, clear
 Implementing Customer Relationship Management | 344

the Normalize Validation Scores check box on the General tab (Miscellaneous Settings section) of the
Customer Management Preferences (CR101000) form.

Validation of Configuration
To make sure that all configuration has been performed correctly, we recommend that in your system, you
configure duplicate validation by performing instructions similar to those described in Duplicate Validation:
Implementation Activity.

Duplicate Validation: Implementation Activity

The following implementation activity will show you how to configure duplicate validation in Acumatica ERP.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that you, as an implementation consultant for the SweetLife Fruits & Jams company. You need to review
and modify the duplicate validation settings in Acumatica ERP in order to provide users with the following abilities:
• To check leads for duplicates against existing leads on entry (before a new record is saved for the first time)
and warn a user if a new lead has an email address that is identical to the email address of the existing lead
• To check business accounts for duplicates against existing accounts on entry, prevent the creation of
business accounts that have identical email addresses, and warn users about duplicate account names

System Preparation
Before you start configuring duplicate validation, you should do the following:
1. Launch the Acumatica ERP website with the U100 dataset preloaded.
2. Sign in to the system as implementation consultant Kimberly Gibbs by using the following credentials:
• Username: gibbs
• Password: 123
3. Make sure that on the Enable/Disable Features (CS100000) form, the Duplicate Validation feature has been
enabled.
4. Make sure that on the Company and Branch Selection menu, in the top pane of the Acumatica ERP screen,
the SweetLife Head Office and Wholesale Center branch is selected.

System Preparation
Before you start configuring duplicate validation, do the following:
1. Make sure that on the Company and Branch Selection menu, in the top pane of the Acumatica ERP screen,
the SweetLife Head Office and Wholesale Center branch is selected.
2. Make sure that on the Enable/Disable Features (CS100000) form, the Duplicate Validation feature has been
enabled.
 Implementing Customer Relationship Management | 345

Step 1: Reviewing Duplicate Validation Settings

To review the existing duplicate validation settings, do the following:
1. Open the Duplicate Validation (CR103000) form. Notice that in the Comparison pane, the Lead to Lead node
is selected by default; you will check its settings.
2. In the right pane of the form, to review the settings used to specify the duplicate validation rules for leads,
do the following:
• In the table, notice the following:
• The total of the values in the Score Weight column is 10.5, which exceeds the value in the Validation
Score Threshold box (Rules of Comparison section).
• In the row with the Email matching field, in the Create on Entry column, the Warn option is
selected, and in the Score Weight column, the validation score is 5, which is equal to the value in the
Validation Score Threshold box.
• In the Rules of Comparison section, the Validate on Entry check box is selected and unavailable for
changing.
With these settings specified, if a user tries to create a lead that has a duplicate value in this field, the system
inserts Possible Duplicate in the Duplicate box of the Leads (CR301000) form for the lead and displays a
warning message. The user can save the lead or cancel record creation.
3. In the Comparison pane, click the Account to Account node to view the duplicate validation rules for
business accounts.
4. In the right pane of the form, to review the settings used to specify the duplicate validation rules for
business accounts, do the following:
• In the table, notice the following:
• The total of the values in the Score Weight column is 7.5, which exceeds the value in the Validation
Score Threshold box.
• In each row with a matching field, in the Create on Entry column, the Allow option is selected, and
the value in the Score Weight column is less than the value in the Validation Score Threshold box,
which is 5.
• In the Rules of Comparison section, the Validate on Entry check box is cleared and available for
changing.
With these settings specified, if a user tries to create a business account that has a duplicate field value, the
system will not display a warning message when a user saves the newly created business account; it will
insert Possible Duplicate in the Duplicate box of the Business Accounts (CR303000) form.

Step 2: Modifying the Validation Rules for Business Accounts

Suppose that your marketing and sales teams need the system to validate business accounts against one another
on entry by comparing email addresses, and to prevent the creation of a business account if another account
with an identical email address already exists in the system. Also, the system should validate account names for
duplicates and warn a user if another account with an identical account name already exists.
To modify the validation rules for business accounts, do the following:
1. While you are still viewing the Duplicate Validation (CR103000) form with the Account to Account node
selected in the Comparison pane, in the table, do the following:
a. In the row with the Email matching field, notice 2 in the Score Weight column.
b. In the row with the Email matching field, select Block in the Create on Entry column.
c. In the row with the Account Name matching field, select Warn in the Create on Entry column.
 Implementing Customer Relationship Management | 346

Notice that for the Email and Account Name matching fields, the system has changed the value in the Score
Weight column to 5, which equals the value in the Validation Score Threshold box (Rules of Comparison
section of the right pane). Also notice that the Validate on Entry check box has become selected and
unavailable for changing.
With these settings, when a user saves a business account that has been created on the Business Accounts
(CR303000) form, the system checks the validated fields, including email address and account name, to be
sure that their values are not identical to the values of these fields in other business accounts in the system.
If the email address of a new business account is identical to an email address existing in the system, when
the user tries to save the account for the first time, the system will display an error message. If the account
name of a new business account is identical to an account name existing in the system, when the user tries
to save the account for the first time, the system will open the Warning dialog box asking whether the user
wants to save the duplicate business account.
2. On the form toolbar, click Save.
3. In the Warning dialog box, which opens, click Yes.
4. On the form toolbar of the Calculate Grams (CR503400) form, which opens, click Process All. The
Processing dialog box opens, showing the progress of gram calculation.

In a production environment, it may take time for the system to process all records.

5. When the processing has been completed and the results of gram calculation are shown, click Close to close
the dialog box. The list of the records on the Calculate Grams form no longer contains any records.

You have modified the validation rules for business accounts. You have also calculated grams for all records. Now
the system will validate business accounts according to the new rules that you have specified in this activity.

Integration with HubSpot

Many Acumatica ERP users use HubSpot as a marketing automation solution to manage their leads and prospects.
The HubSpot integration solution provided by Acumatica ERP gives users the ability to transfer marketing data into
Acumatica ERP from HubSpot and to transfer relevant data back to HubSpot from Acumatica ERP.
The system should be properly configured for this integration, as described in the topics of this chapter.

Integration with HubSpot: General Information

The integration of Acumatica ERP with HubSpot gives you the ability to synchronize data between the two
systems. You synchronize data by using integration scenarios. For information on how to prepare these integration
scenarios, see Configuring Import Scenarios and Configuring Export Scenarios.

Learning Objectives
In this chapter, you will learn how to do the following:
• Configure the HubSpot Enhanced Provider data provider
• Configure the HubSpot data provider
• Synchronize different entities between the systems
• Configure automation schedules that will run synchronization processes
• Resolve synchronization issues
 Implementing Customer Relationship Management | 347

Data Providers
When creating or modifying an integration scenario, you need to specify an appropriate data provider. For the
synchronization of data between Acumatica ERP and HubSpot, you can use one of the following built-in data
providers:
• HubSpot: This data provider is based on a specific built-in provider type: HubSpot Provider. By using this
data provider, you can export leads from Acumatica ERP to HubSpot for nurturing and then import the leads
back to Acumatica ERP for further processing.
For details about how to configure the HubSpot data provider, see Integration with Hubspot: To Configure the
HubSpot Data Provider.
• HubSpot Enhanced Provider: This data provider is based on the HubSpot Enhanced provider type, which
supports both the use of the OAuth protocol and the HubSpot API key for authorization in HubSpot. By using
this data provider, you can synchronize contacts, leads, business accounts, and marketing lists between the
two systems.
For more information about the HubSpot Enhanced Provider data provider, see Integration with HubSpot:
Enhanced HubSpot Data Provider.

Configuration Flow of Data Synchronization Between Acumatica ERP and HubSpot

To configure synchronization of data between Acumatica ERP and HubSpot by using the HubSpot Enhanced
Provider data provider, you should do the following:
1. Configure the HubSpot Enhanced Provider data provider on the Parameters tab of the Data Providers
(SM206015) form so that it connects to HubSpot. For instructions, see Integration with HubSpot: To Configure
the HubSpot Enhanced Data Provider.
2. Prepare integration scenarios that use the HubSpot Enhanced Provider data provider for the entity types
whose data need to be synchronized between the systems, and start the synchronization processes.
For details, see Integration with HubSpot: To Synchronize Leads, Integration with HubSpot: To Synchronize
Contacts, Integration with HubSpot: To Synchronize Accounts, and Integration with HubSpot: To Synchronize
Marketing List.
3. Configure automation schedules that will run the needed import and export scenarios at the specified time
intervals, as described in Integration with HubSpot: To Schedule Synchronization Processes.

HubSpot Integration Limitations

The solution for the synchronization of data between Acumatica ERP and HubSpot has the following limitations:
• Only one instance of HubSpot may be synchronized with an Acumatica ERP instance.
• If multiple data providers use the HubSpot Enhanced provider type, an error will occur when a user attempts
to use any of them.

Integration with HubSpot: Enhanced HubSpot Data Provider

In Acumatica ERP, you can use the HubSpot Enhanced Provider data provider to configure the export of data from
Acumatica ERP to HubSpot and the import of data from HubSpot to Acumatica ERP through the use of integration
scenarios. The HubSpot Enhanced Provider data provider can work with the following data.
 Implementing Customer Relationship Management | 348

Entity Type in Acumatica ERP Corresponding Entity Type in Notes

HubSpot

Leads Contacts  

Contacts Contacts  

Business Accounts Companies  

Marketing Lists Contact Lists Only list properties can be synchro-

nized in real time. The list member-
ship can be synchronized on de-
mand or by a schedule.

Specific Functions Available for Integration Scenarios

The table below provides a list of specific functions that may be used in formulas in an integration scenario that
uses the HubSpot Enhanced Provider data provider. (For more information about functions, see Functions.)

Scenario Type Function Description

Export GetHubSpotContactID(id) Searches for a synchronization state in the list of

known synchronization states by using the Acumatica
ERP contact or lead ID (id).
This function throws an exception if the id value is
null when the function is called.
The function returns null if no synchronization state
is found for the specified id and no record is found in
HubSpot by email.

GetHubSpotListId(listid) Searches for a contact list (listid) in the list of

known real-time synchronization states by using the
Acumatica ERP marketing list ID.
This function returns null when no contact list is
found.

FindHubSpotListId(lis- Searches for a contact list (listid) in the list of

tid) known synchronization states by using the Acumatica
ERP marketing list ID.
This function throws an exception when no contact list
is found.

GetHubSpotCompanyID(ac- Searches for a HubSpot company in the list of known

countid) synchronization states by using the Acumatica ERP
business account natural key (AcctCD).
This function returns null when no company is found.
 Implementing Customer Relationship Management | 349

Scenario Type Function Description

FindHubSpotCompanyID(ac- Searches for a HubSpot company in the list of known

countid) synchronization states by using the Acumatica ERP
business account natural key (AcctCD).
This function throws an exception when nothing is
found.

Import GetAcumaticaContac- Searches for a synchronization state in the list of

tID(vid, field, value) known synchronization states by using the HubSpot
contact ID (vid); if the synchronization state is not
found, the function searches for a contact for which
the value of the field parameter is equal to value.
All the parameters are mandatory. If any parameter is
not specified, the function returns an error when it is
called.
If the value of the vid or value parameter is null
when the function is called, the function throws an ex-
ception.
The function requires that the field parameter be a
valid contact field name. If no field is found, the func-
tion throws an exception.
If no synchronization state is found for the vid para-
meter and if no contact record is found for the field
parameter and for the value parameter, the function
returns null.
If multiple records are found by the function, it throws
an exception.

FindAcumaticaLeadOrCon- Searches for a synchronization state in the list of

tactID(vid) known synchronization states by using the HubSpot
contact ID (vid).
This function returns the ID of the found lead or con-
tact.
The function returns null if the vid parameter is null.
The function throws an exception when no synchro-
nization state is found.
 Implementing Customer Relationship Management | 350

Scenario Type Function Description

GetAcumaticaLeadID(vid, Searches for a synchronization state in the list of

field, value) known synchronization states by using the HubSpot
contact ID (vid); if the HubSpot contact ID is not
found, searches for a lead for which the value of the
field parameter is equal to value.
All the parameters are mandatory. If any parameter
is not specified, the function returns an error when
called.
If the value of the vid or value parameter is null
when the function is called, the function throws an ex-
ception.
The function requires that the field parameter be a
valid lead field name. If no field is found, the function
throws an exception.
If no synchronization state is found for the vid para-
meter and if no lead record is found for the field pa-
rameter and for the value parameter, the function re-
turns null.
If multiple records are found by the function, it throws
an exception.

GetAcumaticaMarket- Searches for an Acumatica ERP marketing list in the

ingListID(listid, list- list of known synchronization states by HubSpot list ID;
name) if the marketing list is not found, the function searches
for a list with a name equal to listname.
This function returns null when no marketing list is
found.

FindAcumaticaMarket- Searches for the HubSpot listid in the list of known

ingListID(listid) synchronization states.
This function returns null if listid is null.
The function throws an exception when no HubSpot
listid is found.

GetAcumaticaAccoun- Searches for an Acumatica ERP business account in

tID(companyid, field, the list of known synchronization states by using the
value) HubSpot company ID or, if no state is found, searches
for a business account that has the value of the field
parameter equal to value.
This function returns null when no Acumatica ERP
business account is found.

FindAcumaticaAccoun- Searches for the companyid in the list of known syn-

tID(companyid) chronization states.
This function throws an exception when no compa-
nyid is found.
 Implementing Customer Relationship Management | 351

Integration with HubSpot: Data Flow Between Systems

The Acumatica ERP and HubSpot systems process data changes differently depending on in which system the
changes have been made. In this topic, you will read about the data flow between the Acumatica ERP and HubSpot.

Data Changes Made in Acumatica ERP

Aer you make a change to a record in Acumatica ERP (for example, deleting a contact), Acumatica ERP queries
HubSpot via the REST API and checks whether the matching entity in HubSpot has been modified. (The import and
export scenarios in Acumatica ERP define the matching rules for records.)
If the matching record in HubSpot has not been modified or does not exist, Acumatica ERP updates it or creates a
new record in HubSpot. If the matching record has been changed in HubSpot, Acumatica ERP checks which of the
systems is the master system and uses the master system's data to update the corresponding record in the other
system. The master system is defined on the HubSpot Sync (HS205020) form.
In the diagram below, you can see the process of synchronizing the data changes that were made in Acumatica ERP
with the data in HubSpot.

Figure: The data flow of changes made in Acumatica ERP

Data Changes Made in HubSpot

Aer you make a change to a record in HubSpot, the system triggers a webhook notification if the webhook
notifications have been configured. (A HubSpot administrator needs to configure webhook notifications for a
HubSpot object event in advance.) If the webhook notifications have not been configured, Acumatica ERP can
get information on the changes in HubSpot by periodically polling it via REST API. (The polling interval setting is
located in the HubSpot Enhanced Provider data provider settings in Acumatica ERP.)
When Acumatica ERP receives a notification about the change, the system checks if any change has been made to
the matching record in Acumatica ERP. If no change has been made or no matching record exists, Acumatica ERP
 Implementing Customer Relationship Management | 352

updates the record or creates a new one. If the record has been changed in both systems, Acumatica ERP checks
which system is the master system and uses the master system data to update the corresponding record in the
other system.
In the diagram below, you can see the process of synchronizing the data changes that were made in HubSpot with
the data in Acumatica ERP.

Figure: The data flow of changes made in HubSpot

Integration with HubSpot: Lead and Contact Synchronization Issues

In HubSpot, contact objects are used to represents both contacts and leads. If a contact is a lead, it is indicated
by the lead status. In Acumatica ERP, there is a separate entity for leads, which can be converted to contacts,
opportunities, or accounts.
If you decide to synchronize both Acumatica ERP leads and Acumatica ERP contacts with HubSpot, you to need to
correctly specify whether a contact in HubSpot is a lead or a contact in Acumatica ERP in the related integration
scenarios. Otherwise, you may end up in a situation in which one contact in HubSpot synchronizes to both a lead
and a contact in Acumatica ERP.
The appropriate source restriction and field mapping settings of lead and contact import and export scenarios
define whether a HubSpot contact synchronizes to a lead or a contact in Acumatica ERP.
 Implementing Customer Relationship Management | 353

Example of Integration Scenario Settings

Acumatica ERP contains preconfigured integration scenarios to which the Lead Status custom field has been added.
This field can be used to distinguish leads and contacts. If the Lead Status of the record is Converted, the record is a
contact. Otherwise it is a lead.
The following settings have been preconfigured for HubSpot Enhanced Provider data provider:
1. On the Source Restriction tab of the Import Scenarios (SM206025) form, for the Import Contacts From
Hubspot import scenario, the following settings have been specified:
• Active: Selected
• Field Name: Lead Status
• Condition: Equals
• Value: CONNECTED
These settings specify that only HubSpot contacts that have the Connected lead status are imported as
contacts.
2. For the Import Leads From Hubspot import scenario, the following settings have been specified:
• Active: Selected
• Field Name: Lead Status
• Condition: Does Not Equal
• Value: CONNECTED
These settings specify that only HubSpot contacts that do not have the Connected lead status are imported
as leads.
3. On the Source Restriction tab of the Export Scenarios (SM207025) form, for the Export Leads to HubSpot
Realtime export scenario, the following settings have been specified:
• Active: Selected
• Source Object: Lead Summary
• Field Name: Status
• Condition: Does Not Equal
• Value: Converted
These settings specify that converted leads are not exported as leads because they are exported as contacts.
4. On the Mapping tab of the Export Scenarios form, for the Export Contacts to HubSpot Realtime export
scenario, the following settings have been specified:
• Active: Selected
• Source Object: Contact Summary
• Field/Action Name: ='CONNECTED'
• Target Field/Value: Lead Status (hs_lead_status)
These settings specify that during the export of contacts from Acumatica ERP, the lead status of the
HubSpot contacts is set to Connected.

Similarly, you can configure other integration scenarios that you plan to use for HubSpot integration.
 Implementing Customer Relationship Management | 354

Integration with HubSpot: Configuration Prerequisites

Before you start to set up integration between HubSpot and Acumatica ERP, you must be sure that yourHubSpot
subscription meets the requirements and the system has been configured properly, as described in the following
sections.

Checking Requirements
For successful integration of Acumatica ERP with HubSpot, make sure that your organization uses one of the
following Marketing Hub subscriptions in which the Lists feature is included:
• Starter
• Professional
• Enterprise
For more information about these subscriptions, see HubSpot Marketing Software Pricing.

Enabling the Needed Features

On the Enable/Disable Features (CS100000) form, the HubSpot Integration feature (under the Third Party
Integrations group of features) must be enabled. By enabling this feature, you can use different units of measure as
base, sales, and purchase units for item classes and stock items.

Configuring the System

On the Customer Management Preferences (CR101000) form, make sure that the basic customer management
settings have been specified.

Integration with HubSpot: To Configure the HubSpot Enhanced Data Provider

When integrating HubSpot and Acumatica ERP, you need to specify the appropriate data provider. To export leads
to HubSpot or to import leads from HubSpot, you can use the preconfigured HubSpot Enhanced Provider data
provider. In this activity, you will learn how to configure this data provider.

System Preparation
Before you start configuring the integration between HubSpot and Acumatica ERP, perform the following
preparatory tasks:
• Obtain the HAPI key: In the HubSpot instance, navigate to Settings > Integrations > API Key. Click Show
Key, and copy and paste the key, or write it down for later use.
• Take note of the hub ID: The hub ID is a numeric value that you can find in the URL of any page of the
HubSpot instance with which integration is set up. For example, if the URL of the page in the HubSpot
instance is app.hubspot.com/contact/1234567/, the ID is 1234567. Again, copy and paste the key, or write it
down for later use.
Now you can launch the Acumatica ERP website, and sign in to the necessary tenant.

Step: Configuring the HubSpot Data Provider

To configure the HubSpot data provider, you need to do the following:
 Implementing Customer Relationship Management | 355

1. Open the Data Providers (SM206015) form.

2. In the Name box of the Summary area, select HubSpot Enhanced Provider.
3. On the Parameters tab, specify the following settings in the Value column of the appropriate row:
• In the row with the HAPIKey name: The HubSpot API key
• In the row with the PortalID name: The Hub ID
4. On the Schema tab, on the table toolbar of the Source Objects pane, click Fill Schema Objects.
5. For each object that you want to be synchronized, make sure the check box in the Active column is selected.
Clear this check box for the objects that you do not want to synchronize.
6. In the Source Fields pane, make sure the check box in the Active column is selected for the fields that you
want to be integrated. Clear this check box for the fields that you do not want to be integrated.
7. On the table toolbar of the pane, click Fill Schema Fields.
8. On the form toolbar, click Save to save your changes.

Integration with HubSpot: To Synchronize Leads

In this activity, you will learn how to configure the synchronization of leads between HubSpot and Acumatica ERP.

System Preparation
Launch the Acumatica ERP website, and sign in to the necessary tenant.

Step 1: Verifying the Lead Import Scenario

To verify and modify (if necessary) the import scenario used for leads, do the following:
1. Open the Import Scenarios (SM206025) form.
2. In the Name box of the Summary area, select Import Leads From Hubspot.
3. In the Provider box, make sure that the correct provider is selected.
4. On the Mapping tab, make sure that the specified settings are correct; modify them if necessary.
5. On the Source Restrictions tab, make sure that the restrictions give you the ability to correctly synchronize
HubSpot contacts with Acumatica ERP leads.
6. On the form toolbar, click Save.

Step 2: Verifying the Lead Export Scenario

To verify and modify (if necessary) the export scenario used for leads, do the following:
1. Open the Export Scenarios (SM207025) form.
2. In the Name box of the Summary area, select Export Leads to HubSpot Realtime.
3. In the Provider box, make sure that the correct provider is selected.
4. On the Mapping tab, make sure that the specified settings are correct; modify them if necessary.
5. On the Source Restrictions tab, make sure that the restrictions give you the ability to correctly synchronize
Acumatica ERP leads with HubSpot contacts.
6. On the form toolbar, click Save.
 Implementing Customer Relationship Management | 356

Step 3: Configuring the Real-Time Synchronization Profile for Leads

Configure the real-time synchronization for leads as follows:
1. Open the HubSpot Sync (HS205020) form.
2. In the table, add a new row, and do the following in the row:
a. In the Entity column, select Lead.
b. In the Import Scenario column, select Import Leads From Hubspot.
c. In the Export Scenario column, select Export Leads to HubSpot Realtime.
d. In the Number of Attempts column, select the appropriate maximum number of attempts the system
will make to restart synchronization aer it has failed.
e. In the Master Source column, select the source system.
3. On the form toolbar, click Save.

Step 4: Verifying the Integration

Verify that the systems are correctly integrated with each other as follows:
1. Open the Leads (CR301000) form, and create a lead.
For details, see Leads: To Create a Lead Manually.
2. On the table toolbar of the HubSpot tab, click Sync with HubSpot.
3. Go to the HubSpot instance, and verify that the contact related to the lead exists in the system.
4. In HubSpot, modify any value for the contact.
5. In Acumatica ERP, return to the Leads form. On the table toolbar of the HubSpot tab, click Sync with
HubSpot.
6. Verify that the value modified in HubSpot has been also modified in Acumatica ERP.

Step 5: Synchronizing the Out-of-Sync Data

Do the following to synchronize the data that has become out of sync:
1. Open the HubSpot Data Resync (HS205035) form.
2. In the Sync to Start box of the Selection area, select Full Data Resync.
3. In the table, select the Included check box in the row of the Lead entity.
4. On the form toolbar, click Process.

The process may be time-consuming if a large number of records is involved. It may take hours
or even days.

Step 6: Starting the Real-Time Synchronization Process

To start the real-time synchronization, perform the following instructions:
1. Open the HubSpot Sync (HS205030) form.
2. In the table, select the Included check box in the row of the Lead entity.
3. On the form toolbar, click Start.
 Implementing Customer Relationship Management | 357

You can create a schedule to run the synchronization processes automatically. For details, see Integration with
HubSpot: To Schedule Synchronization Processes.

Integration with HubSpot: To Synchronize Contacts

In this activity, you will learn how to configure the synchronization of contacts between HubSpot and Acumatica
ERP.

System Preparation
Launch the Acumatica ERP website, and sign in to the necessary tenant.

Step 1: Verifying the Contact Import Scenario

To verify and modify (if necessary) the import scenario used for contacts, do the following:
1. Open the Import Scenarios (SM206025) form.
2. In the Name box of the Summary area, select Import Contacts From Hubspot.
3. In the Provider box, make sure that the correct provider is selected.
4. On the Mapping tab, make sure that the specified settings are correct; modify them if necessary.
5. On the Source Restrictions tab, make sure that the restrictions give you the ability to correctly synchronize
HubSpot contacts with Acumatica ERP contacts.
6. On the form toolbar, click Save.

Step 2: Verifying the Contact Export Scenario

To verify and modify (if necessary) the export scenario used for contacts, do the following:
1. Open the Export Scenarios (SM207025) form.
2. In the Name box of the Summary area, select Export Contacts to HubSpot Realtime.
3. In the Provider box, make sure that the correct provider is selected.
4. On the Mapping tab, make sure that the specified settings are correct; modify them if necessary.
5. On the Source Restrictions tab, make sure that the restrictions give you the ability to correctly synchronize
Acumatica ERP leads with HubSpot contacts.
6. On the form toolbar, click Save.

Step 3: Configuring the Real-Time Synchronization Profile for Contacts

Configure the real-time synchronization for contacts as follows:
1. Open the HubSpot Sync (HS205020) form.
2. In the table, add a new row, and do the following in the row:
a. In the Entity column, select Contact.
b. In the Import Scenario column, select Import Contacts From Hubspot.
c. In the Export Scenario column, select Export Contacts to HubSpot Realtime.
d. In the Number of Attempts column, select the appropriate maximum number of attempts the system
will make to restart synchronization aer it has failed.
 Implementing Customer Relationship Management | 358

e. In the Master Source column, select the source system.

3. On the form toolbar, click Save.

Step 4: Verifying the Synchronization

Verify the systems are correctly integrated with each other as follows:
1. Open the Contacts (CR302000) form, and create a contact.
For details, see Contacts: To Create a Contact Manually.
2. On the table toolbar of the HubSpot tab, click Sync with HubSpot.
3. Go to the HubSpot instance, and verify that the contact exists in the system.
4. In HubSpot, modify any value for the contact.
5. In Acumatica ERP, return to the Contacts form. On the table toolbar of the HubSpot tab, click Sync with
HubSpot.
6. Verify that the value modified in HubSpot has been also modified in Acumatica ERP.

Step 5: Synchronizing Out-of-Sync Data

Do the following to synchronize the data that has become out of sync:
1. Open the HubSpot Data Resync (HS205035) form.
2. In the Sync to Start box of the Selection area, select Full Data Resync.
3. In the table, select the Included check box in the row of the Contacts entity.
4. On the form toolbar, click Process.

The process may be time-consuming if a large number of records is involved.

Step 6: Starting the Real-Time Synchronization Process

To start the real-time synchronization, perform the following instructions:
1. Open the HubSpot Sync (HS205030) form.
2. In the table, select the Included check box in the row of the Contact entity.
3. On the form toolbar, click Start.

You can create a schedule to run the synchronization processes automatically. For details, see Integration with
HubSpot: To Schedule Synchronization Processes.

Integration with HubSpot: To Synchronize Accounts

In this activity, you will learn how to configure the synchronization of accounts between HubSpot and Acumatica
ERP.

System Preparation
Launch the Acumatica ERP website, and sign in to the necessary tenant.
 Implementing Customer Relationship Management | 359

Step 1: Verifying the Account Import Scenario

To verify and modify (if necessary) the import scenario used for accounts, do the following:
1. Open the Import Scenarios (SM206025) form.
2. In the Name box of the Summary area, select Import Accounts From Hubspot.
3. In the Provider box, make sure that the correct provider is selected.
4. On the Mapping tab, make sure that the specified settings are correct; modify them if necessary.
5. On the Source Restrictions tab, check the restrictions, and change them if necessary.
6. On the form toolbar, click Save.

Step 2: Verifying the Account Export Scenario

To verify and modify (if necessary) the export scenario used for accounts, do the following:
1. Open the Export Scenarios (SM207025) form.
2. In the Name box of the Summary area, select Export Accounts to HubSpot Realtime.
3. In the Provider box, make sure that the correct provider is selected.
4. On the Mapping tab, make sure that the specified settings are correct; modify them if necessary.
5. On the Source Restrictions tab, check the restrictions, and change them if necessary.
6. On the form toolbar, click Save.

Step 3: Configuring the Real-Time Synchronization Profile for Accounts

Configure the real-time synchronization for accounts as follows:
1. Open the HubSpot Sync (HS205020) form.
2. In the table, add a new row, and do the following in the row:
a. In the Entity column, select Business Account.
b. In the Import Scenario column, select Import Accounts From Hubspot.
c. In the Export Scenario column, select Export Accounts to HubSpot Realtime.
d. In the Number of Attempts column, select the appropriate maximum number of attempts the system
will make to restart synchronization aer it has failed.
e. In the Master Source column, select the source system.
3. On the form toolbar, click Save.

Step 4: Verifying the Synchronization

Verify the systems are correctly integrated with each other as follows:
1. Open the Business Accounts (CR303000) form, and create an account.
2. On the table toolbar of the HubSpot tab, click Sync with HubSpot.
3. Go to the HubSpot instance, and verify that the account exists in the system.
4. In HubSpot, modify any value for the account.
5. In Acumatica ERP, return to the Business Accounts form. On the table toolbar of the HubSpot tab, click Sync
with HubSpot.
 Implementing Customer Relationship Management | 360

6. Verify that the value modified in HubSpot has been also modified in Acumatica ERP.

Step 5: Synchronizing Out-of-Sync Data

Do the following to synchronize the data that has become out of sync:
1. Open the HubSpot Data Resync (HS205035) form.
2. In the Sync to Start box of the Selection area, select Full Data Resync.
3. In the table, select the Included check box in the row of the Business Account entity.
4. On the form toolbar, click Process.

The process may be time-consuming if a large number of records is involved.

Step 6: Starting the Real-Time Synchronization Process

To start the real-time synchronization, perform the following instructions:
1. Open the HubSpot Sync (HS205030) form.
2. In the table, select the Included check box in the row of the Business Account entity.
3. On the form toolbar, click Start.

You can create a schedule to run the synchronization processes automatically. For details, see Integration with
HubSpot: To Schedule Synchronization Processes.

Integration with HubSpot: To Synchronize Marketing List

In this activity, you will learn how to configure the synchronization of marketing list headers and marketing list
membership between HubSpot and Acumatica ERP.

System Preparation
Launch the Acumatica ERP website, and sign in to the necessary tenant.

Step 1: Verifying the Marketing List Import Scenario

To verify and modify (if necessary) the import scenario used for marketing lists, do the following:
1. Open the Import Scenarios (SM206025) form.
2. In the Name box of the Summary area, select Import Marketing Lists From Hubspot.
3. In the Provider box, make sure that the correct provider is selected.
4. On the Mapping tab, make sure that the specified settings are correct; modify them if necessary.

Depending on which system is the master system, activate or deactivate the Dynamic List field.
Generally, if the master system for contact lists is HubSpot, all marketing lists in Acumatica
ERP are static.

5. On the Source Restrictions tab, check the restrictions, and change them if necessary.
6. On the form toolbar, click Save.
 Implementing Customer Relationship Management | 361

Step 2: Verifying the Marketing List Export Scenario

To verify and modify (if necessary) the export scenario used for marketing lists, do the following:
1. Open the Export Scenarios (SM207025) form.
2. In the Name box of the Summary area, select Export Marketing Lists to HubSpot Realtime.
3. In the Provider box, make sure that the correct provider is selected.
4. On the Mapping tab, make sure that the specified settings are correct; modify them if necessary.
5. On the Source Restrictions tab, check the restrictions, and change them if necessary.
6. On the form toolbar, click Save.

Step 3: Configuring the Real-Time Synchronization Profile for Marketing Lists

Configure the real-time synchronization for marketing lists as follows:
1. Open the HubSpot Sync (HS205020) form.
2. In the table, add a new row, and do the following: in the row
a. In the Entity column, select Marketing List.
b. In the Import Scenario column, select Import Marketing Lists From Hubspot.
c. In the Export Scenario column, select Export Marketing Lists to HubSpot Realtime.
d. In the Number of Attempts column, select the appropriate maximum number of attempts the system
will make to restart synchronization aer it has failed.
e. In the Master Source column, select the source system.
3. On the form toolbar, click Save.

Step 4: Verifying the Synchronization

Verifythe systems are correctly integrated with each other as follows:
1. Open the Marketing Lists (CR204000) form, and create a marketing list.
2. On the table toolbar of the HubSpot tab, click Sync with HubSpot.
3. Go to the HubSpot instance, and verify that the marketing list exists in the system.
4. In HubSpot, modify any value for the marketing list.
5. In Acumatica ERP, return to the Marketing Lists form. On the table toolbar of the HubSpot tab, click Sync
with HubSpot.
6. Verify that the value modified in HubSpot has been also modified in Acumatica ERP.

Step 5: Synchronizing Out-of-Sync Data

Do the following to synchronize the data that has become out of sync
1. Open the HubSpot Data Resync (HS205035) form.
2. In the Sync to Start box of the Selection area, select Full Data Resync.
3. In the table, select the Included check box in the row of the Marketing List entity.
4. On the form toolbar, click Process.
 Implementing Customer Relationship Management | 362

The process may be time-consuming if a large number of records is involved.

Step 6: Starting the Real-Time Synchronization Process

To start the real-time synchronization, perform the following instructions:
1. Open the HubSpot Sync (HS205030) form.
2. In the table, select the Included check box in the row of the Marketing List entity.
3. On the form toolbar, click Start.

Step 7: Synchronizing the Marketing List Membership with the HubSpot Contact List
Do the following:
1. Open the HubSpot Marketing List Members (HS205050) or HubSpot Marketing List Members (HS205051) form.

Use the form you have permission to access.

2. In the Marketing List box of the Summary area, select the marketing list whose membership you want to
synchronize with HubSpot.
3. In the Action box, select Push Members to HubSpot.
4. On the form toolbar, click Fetch.
5. Aer the process is complete, for all members, make sure that the Entity Sync Status is Synchronized.

Members that do not have the Synchronized status cannot be added to HubSpot.

6. On the form toolbar, click Process All.

Step 8: Synchronizing the HubSpot Contact List Membership with Acumatica Marketing List
Membership
Do the following:
1. Open the HubSpot Marketing List Members (HS205050) or HubSpot Marketing List Members (HS205051) form.

Use the form that you have permission to access.

2. In the Marketing List box of the Summary area, select the marketing list whose membership you want to
synchronize with HubSpot.
3. In the Action box, select Pull Members from HubSpot.
4. On the form toolbar, click Fetch.
5. Aer the process is complete, for all members, make sure that the Entity Sync Status is Synchronized.

Members that do not have the Synchronized status cannot be added as marketing list
members to Acumatica ERP.

6. On the form toolbar, click Process All.

 Implementing Customer Relationship Management | 363

You can create a schedule to run the synchronization processes automatically. For details, see Integration with
HubSpot: To Schedule Synchronization Processes.

Integration with HubSpot: To Schedule Synchronization Processes

In this activity, you will learn how to schedule the synchronization of entities between HubSpot and Acumatica
ERP.

System Preparation
Launch the Acumatica ERP website, and sign in to the necessary tenant.

Step 1: Scheduling the Real-Time Synchronization

The real-time synchronization process runs all the time; however, in certain cases, it can be interrupted. For these
cases, an automated restarting of the process should be scheduled as follows:
1. Open the HubSpot Sync (HS205030) form.
2. In the table, select the unlabeled check box in the row of each entity for which you want to schedule
synchronization.
3. On the form toolbar, click Schedules > Add.
The Automation Schedules (SM205020) form opens.
4. In the Description box of the Summary area, specify a brief description of the schedule.
5. In the Action Name box, select Start.
6. On the Details tab, in the Starts On box, make sure the date when the schedule has to start running is
selected.
7. On the Schedule tab, in the Schedule Type section, make sure the Daily option button is selected.
8. In the Execution Time section, in the Every box, specify how oen you want the schedule to run.

We recommend that you specify five or ten minutes for this schedule.

9. On the form toolbar, click Save & Close.

Step 2: Scheduling the Synchronization of the Out-of-Sync Data

Do the following to schedule the synchronization of data that has become out of sync:
1. Open the HubSpot Data Resync (HS205035) form.
2. In the Sync to Start box of the Selection area, select Failed & Missed Data Resync.
3. In the table, select the Included check box in the row of each entity for which you want to schedule
synchronization.
4. On the form toolbar, click Schedules > Add.
The Automation Schedules (SM205020) form opens.
5. In the Description box of the Summary area, specify a brief description of the schedule.
6. In the Action Name box, select Process.
7. On the Details tab, in the Starts On box, make sure the date when the schedule has to start running is
selected.
 Implementing Customer Relationship Management | 364

8. On the Schedule tab, in the Schedule Type section, make sure the Daily option button is selected.
9. In the Execution Time section, in the Every box, specify how oen you want the schedule to run.

We recommend that you specify five or ten minutes for this schedule. If many errors occur on
the initial Full Data Resync process, we recommend that you run the resynchronization process
less oen (for instance, every hour) until the errors are eliminated.

10.On the form toolbar, click Save & Close.

11.When you are returned to the HubSpot Data Resync form, in the Sync to Start box of the Selection area,
select Full Data Resync.
12.On the form toolbar, click Schedules > Add.
The Automation Schedules form opens.
13.On the Details tab, in the Starts On box, make sure the date when the schedule has to start running is
selected.
14.On the Schedule tab, in the Schedule Type section, make sure the Daily option button is selected.
15.In the Execution Time section, in the Starts On and Stops On box, specify when you want the schedule to
run.

We recommend that you set this schedule to run every day during the business' off-hours.

16.On the form toolbar, click Save & Close.

Integration with HubSpot: To Resolve Synchronization Issues

In this activity, you will learn how to resolve issues that occur during the synchronization of entities between
HubSpot and Acumatica ERP.

System Preparation
Launch the Acumatica ERP website, and sign in to the necessary tenant.

Step: Reviewing Errors and Resolving Issues

To verify and modify (if necessary) the import scenario, do the following:
1. Open the HubSpot Sync Dashboard (HS2050DB) form.
2. On the dashboard, look for entities that have been synchronized with errors.
3. For each entity synchronized with errors, click the related widget to review the list of errors.
4. In the Error column of the form that is brought up (which depends on the widget you have clicked), review
the error messages.
5. Resolve the issues specified in the messages.
6. In the Status column, click the link.
The HubSpot Sync State (HS205041) form opens.
7. On the form toolbar, click Sync All.
8. Perform Instructions 3 through 7 for all entities.
 Implementing Customer Relationship Management | 365

Integration with Hubspot: To Configure the HubSpot Data Provider

When creating an integration scenario, you need to specify an appropriate data provider. To export leads to
HubSpot or to import leads from HubSpot, you can use the HubSpot data provider, which is a preconfigured
data provider based on a specific built-in provider type: HubSpot Provider. This data provider needs additional
configuration before it can be put into use.

Step: Configuring the HubSpot Data Provider

1. On the Data Providers (SM206015) form, select the HubSpot provider.
2. On the Parameters tab, specify the following settings:
• Hapikey: Your HubSpot API key
• PortalID: Hub ID
• HubSpotList: The name of the list to be used for synchronization between Acumatica ERP and HubSpot (if
no such list exists yet, it will be created automatically during the first export or import)
3. On the Schema tab, click Fill Schema Objects and then Fill Schema Fields.

You can deactivate some of the HubSpot utility fields that you are not going to use in your
integration scenario.

4. On the form toolbar, click Save to save your changes.

 Implementing Project Accounting | 366

Implementing Project Accounting

This chapter describes the minimum required configuration of project accounting functionality in Acumatica ERP.

Basic Project Accounting

Before you create and manage projects, you should plan how projects will be integrated with other functional
areas of Acumatica ERP so that the information about project-related transactions transparently flows to the
projects and will be available for tracking budgets, costs, and future revenues for projects. This chapter describes
the minimum configuration of the project accounting functionality that is required for users to work with projects
in Acumatica ERP.

Basic Project Configuration: General Information

The project accounting functionality in Acumatica ERP offers a new way of handling financial and management
accounting in the company. By using projects, you can break corporate activity into separate units, each of
which denotes a set of services provided to a particular customer. You can also track the progress of work being
performed for each individual project, and estimate the profitability of the project.
This topic provides a general overview of the configuration steps that you have to perform before you can start
using project accounting functionality in Acumatica ERP.

Learning Objectives
In this chapter, you will learn how to perform the initial configuration for the project accounting functionality. In
particular, you will do the following:
• Enable the needed system features
• Perform the minimum required configuration
• Learn the recommended settings that you can specify to make the system fit your business requirements

Applicable Scenarios
You perform the basic configuration of the project accounting functionality in any of the following cases:
• When you initially implement Acumatica ERP and the Projects feature is included in your license
• When you have purchased the Projects feature, and you need to configure project accounting in the already-
implemented system

Integration of Projects with Other System Areas

To track budgets, costs, and future revenues for projects, the project accounting functionality can be tightly
integrated with other system areas: general ledger, accounts payable, accounts receivable, cash management,
inventory and order management, customer management, and time and expenses. By using this integration, you
can collect comprehensive information about transactions related to projects. The following diagram illustrates the
integration of project accounting with other functional areas of Acumatica ERP.
 Implementing Project Accounting | 367

You specify the system areas in which you want the ability to process documents or transactions related to
particular projects by selecting the corresponding check boxes in the Visibility Settings section of the Projects
Preferences (PM101000) form. The active projects become visible in all the system areas for which you have
selected check boxes on this form; the system adds two additional elements—Project and Task—to the data
entry forms of these areas. Each time you enter a document or transaction, or a document or transaction line,
that relates to a specific active project, you select the appropriate project and task to associate this document
or transaction (or this document or transaction line) with the project. As a result, the information from these
documents and transactions is represented in the project and affects the project budget.

Tracking of Non-Project Transactions

When you are initially configuring the project accounting functionality, you define the non-project code on the
Projects Preferences (PM101000) form. You specify this code for specific documents or transactions (or their lines)
to indicate that they are not associated with any project. By default, this code is X, but you can specify a different
non-project code. If a particular transaction is not related to any project, you specify the non-project code in the
document or transaction, or the document or transaction line. The information from the documents or document
lines with the non-project code specified is not used in project accounting and does not update project balances.

Workflow of the Project Accounting Implementation

Each particular feature may be subject to additional licensing; please consult the Acumatica ERP sales
policy for details.

To prepare the system for project accounting, you perform the following general steps:
1. You configure basic company settings and implement the minimum general ledger, cash management,
accounts payable, and accounts receivable functionality. For details, see Acumatica ERP Implementation
Guide.
2. You perform basic configuration of inventory and order management and customer management areas if
the Inventory and Order Management and Customer Management features are included in your license. For
details, see Configuration of Order Management: Implementation Activity and Configuring CRM Functionality:
Implementation Activity.
 Implementing Project Accounting | 368

3. If time tracking in projects is planned, you perform basic configuration of time reporting functionality. For
an example of configuration, see Time Tracking Configuration: General Information.
4. On the Projects Preferences (PO101000) form, you specify the necessary settings (and any optional
settings) to be used in project accounting, including the non-project code, which you use to indicate that
specific documents or transactions (or their lines) are not associated with any project. For an example of
configuration, see Basic Project Configuration: Implementation Activity.
5. On the Account Groups (PM201000) form, you define the account groups that will aggregate information
about the GL transactions related to the projects. For an example of defining account groups, see Account
Groups: Implementation Activity.
6. On the Billing Rules (PM207000) form, you create the billing rules to be used for billing projects. For details,
see the topics of the Creating Billing Rules chapter.
7. On the Projects (PM301000) form, you configure a project. For details on the project lifecycle and project
configuration, see the topics of the Creating and Processing Projects chapter.

Basic Project Configuration: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for project
accounting in Acumatica ERP, and to specify settings that affect the processing workflows.

Mandatory Configuration
To ensure that the basic project accounting configuration has been implemented properly, make sure that the
necessary features have been enabled and settings have been specified, as described in the following checklist.

Form Criteria to Check

Multiple forms Make sure that the minimum company settings have
been specified, as described in Company Without
Branches: General Information, and the minimal re-
quired functionality has been implemented for all oth-
er functional areas to be integrated with the projects
functionality.

Enable/Disable Features (CS100000) form Make sure that the Projects feature is enabled.

Projects Preferences (PO101000) form Save the default settings.

Table: Recommended Configuration

To speed the processing of documents and minimize errors, you should specify and save the recommended
settings listed in the following table.
 Implementing Project Accounting | 369

Form Criteria to Check

Projects Preferences (PO101000) form Make sure that the following settings have been speci-
fied on the General tab:
• In the Non-Project Code box ( General Settings
section), the non-project code is specified. This
code must be specified in transactions, documents
and document lines that are not related to any
project. For convenience, the non-project code
should be distinctly different from project IDs and
should be short, such as the single character X,
which is used by default.
• In the Empty Item Code box ( General Settings
section), the empty item ID is specified. This is the
identifier to be used in project transaction, com-
mitment, budget lines of a project, or pro forma in-
voice lines that are not associated with a specific
item. The default empty item code is <N/A>.
• In the Empty Item UOM box ( General Settings
section), the default unit of measure of the empty
item code is specified. The default value is HOUR.
• In the Visibility Settings section, the check boxes
are selected for the areas of the system in which the
projects should be visible.

Other Settings That Affect the Workflow

You can affect the workflow of projects by specifying additional settings as follows:
• To cause the system to post project transactions automatically once they are released, select the
Automatically Post on Release check box on the General tab of the Projects Preferences (PO101000) form.
• To cause the system to release project allocation transactions automatically, select the Automatically
Release Allocation check box on the General tab of the Projects Preferences (PO101000) form.

Basic Project Configuration: Implementation Activity

You perform the following implementation activity to prepare the system for users to create and process projects.

Story
Suppose that you, as the implementation manager of the SweetLife Fruits & Jams company, need to configure the
minimum required functionality to prepare the system for accounting for projects.

System Preparation
Before you start configuring the basic project functionality, you perform the following instructions:
1. In a new tenant, prepare a company with the basic settings, as described in the Company Without Branches:
General Information.
2. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded; you should
sign in as system administrator by using the gibbs username and the 123 password.
 Implementing Project Accounting | 370

3. On the Enable/Disable Features (CS100000) form, enable the Projects feature.

Step: Reviewing Basic Project Accounting Functionality

To perform basic configuration of the project accounting functionality, proceed as follows:
1. Open the Projects Preferences (PM101000) form.
2. On the General tab (General Settings section), make sure that X is specified in the Non-Project Code box.
This is the code that will be used by default in all transactions and documents that are not related to any
projects.
3. Make sure that <N/A> is selected in the Empty Item Code box, and select HOUR in the Empty Item UOM
box. The system will insert this item and unit of measure, respectively, in project-related lines that are not
associated with a specific item.
4. Make sure the Automatically Post on Release check box is selected.
5. Make sure the Automatically Release Allocations check box is selected.
6. In the Visibility Settings section, make sure the check boxes are selected for all areas in which the projects
will be used.
7. Save your changes to the form.

You have configured the basic project accounting functionality. Now you can proceed with creating account groups.

Employee Time Tracking

In Acumatica ERP, you can integrate projects with the functionality used to track time and expenses, so that you
can track employee time spent on projects and bill projects based on the logged time.

Time Tracking Configuration: General Information

In Acumatica ERP, you can configure time tracking so that employees will be able to report the time spent on any
project based on time cards and, optionally, time activities. Employees' reported time will be tracked in the project
and billed automatically when project billing is run.

Learning Objectives
In this chapter, you will learn how to configure the system so that employee time can be tracked for individual
projects. In particular, you will do the following:
• Prepare the system for the configuration of time tracking
• Enable the needed system features
• Specify the minimum required configuration so that time cards (and time activities, if applicable) can be
used to track employee time spent for a project

Applicable Scenarios
When you are initially configuring accounting for projects, you configure time tracking if your organization is going
to bill the customers for the for the time employees spend working on any projects.
 Implementing Project Accounting | 371

Time Tracking with Time Cards in Projects

If time tracking is in use in your organization, the time the employees spend on daily activities is recorded in
time cards to track the expenses. A time card is a weekly report on the time an employee has spent each day on
particular activities, including project-related ones. If time tracking is configured for use with projects, the time
reported by employees is logged to the related project (or to the non-project code if no project is involved). The
employee time logged to a particular project is billed during the project billing procedure.
When a time card that includes project-related activities is released, for each line of a time card that relates
to a project, the system retrieves the labor cost rate at which the employee's labor is billed and generates the
corresponding project transaction. The project transaction affects the cost budget of the related project: The
system either updates the actual amount and quantity of the existing line or adds a new cost budget line with the
incurred costs. Further, this project transaction is billed according to the billing rule specified for the corresponding
project task.

Time Tracking with Time Activities in Projects

You can configure the system so that an employee will report working hours by using time cards in combination
with time activities. The information from time activities entered by the employee is then copied to the employee
time card for the week that includes the date for which the time activity has been entered. For more information,
see Time Tracking Configuration: Tracking Time with Time Activities.

Workflow of the Time Tracking Implementation

To prepare the system for time reporting for projects, you perform the following general steps:
1. You specify the minimum required configuration for time reporting, as demonstrated in the Time Tracking
Configuration: To Configure Time Tracking in Projects.
2. Optionally, you configure time tracking with time activities, as illustrated in the Time Tracking Configuration:
To Track Time with Time Activities.
3. On the Non-Stock Items (IN202000) form, you define labor non-stock items that correspond to the services
provided by employees; then on the Employees (EP203000) form, you assign the labor items to the
employees who will perform those types of labor. For an example of the creation of labor items, see Labor
Items: To Configure a Labor Item.
4. On the Labor Rates (PM209900) form, you define labor cost rates that are specific to employees, projects,
and project tasks. For an example of this task being performed, see Labor Items: To Define Labor Cost Rates.
5. You configure the basic project accounting settings, as demonstrated in the Basic Project Configuration:
Implementation Activity.

Aer you perform the basic time tracking configuration, employees will be able to log project-related work by using
time cards (and, optionally, time activities).

Time Tracking Configuration: Implementation Checklist

The following sections provide details you can use to ensure that the time tracking functionality in the system is
configured properly to be used in accounting for projects.

Prerequisite Configuration
To ensure that the prerequisite configuration has been implemented properly, make sure that the necessary
entities have been defined,and settings have been specified, as described in the following checklist.
 Implementing Project Accounting | 372

Form Criteria to Check

Multiple forms The minimum company settings have been specified,

as described in Company Without Branches: General In-
formation.

Earning Types (EP102000) Additional earning types, if needed, have been defined
in addition to the predefined earning types. Also, for
the earning types that relate to the employee time to
be billed within the project, the Billable check box
will be selected. For information on earning types, see
Time Activities.

Employees (EP203000) All employees for whom time will be tracked have
been defined. For details, see Employee Settings.

Activity Types (CR102000) form Activity types have been defined, if needed, in addition
to those that are predefined in the system

Configuration of Reporting Time with Time Cards

To ensure that the basic time reporting configuration has been implemented properly and the employees will be
able to log time spent on projects in time cards, make sure that the necessary features have been enabled, entities
have been defined, and settings have been specified, as described in the following checklist.

Form Criteria to Check

Enable/Disable Features (CS100000) The Advanced Financials and Projects features are en-
abled.

Time and Expenses Preferences (EP101000) In the Posting Option for Non-Payroll Employee box
(in the Time Reporting Settings section of the Gen-
eral Settings tab), Post PM and GL Transactions is se-
lected, which means that on release of time cards and
time activities, the system generates project account-
ing and general ledger transactions.

Projects Preferences (PO101000) In the Visibility Settings section, the Time Entries
and Expenses check boxes are selected.
In the Expense Account Source and Expense Accru-
al Account boxes of the Account Settings section, the
sources for the expense account and expense accru-
al account have been selected; these settings define
the debit and credit accounts to be used in the project
transactions generated on release of time cards.

Non-Stock Items (IN202000) The labor items that are needed for all employees for
all available earning types have been created, as illus-
trated in the Labor Items: To Configure a Labor Item.

Labor Rates (PM209900) Labor cost rates for employees have been defined, as
illustrated in Labor Items: To Define Labor Cost Rates.
 Implementing Project Accounting | 373

Configuration of Reporting Time with Time Activities

To ensure that the employees will be able to log time with time activities, make sure that the necessary features
have been enabled and settings have been specified, as described in the following checklist.

Form Criteria to Check

Enable/Disable Features (CS100000) The Time Management feature is enabled.

Activity Types (CR102000) The Track Time and Costs check box is selected for
the activity types for which you want to track billable
time in projects.

Other Settings That Affect the Workflow

You can affect the workflow of time reporting by specifying additional settings as follows:
• To cause the system to require an employee to enter time cards, select the Time Card is Required check
box on the Employees (EP203000) form. If reporting of time with time activities is configured, selecting this
check box means that time activities can be released only within a time card.
• To cause the system to post project transactions generated on release of time activities to the off-balance
account group, select Post PM to Off-Balance Account Group in the Posting Option for Non-Payroll
Employee box, and specify the account group of the Off-Balance Type in the Off-Balance Account Group
on the Time and Expenses Preferences (EP101000) form.
• To cause project transactions to be automatically generated and released on release of time cards, select
the Automatically Release PM Documents on the Time and Expenses Preferences (EP101000) form.
• To associate an earning type with a particular project or project task, on the Earning Types (EP102000) form,
for an earning type, specify the project or project task in the Default Project Code box and Default Task
box, respectively.
• To copy notes and attached documents from time cards to generated project transactions, select the
Copy Files to PM Documents and Copy Notes to PM Documents check boxes on the Time and Expenses
Preferences form.

Time Tracking Configuration: To Configure Time Tracking in Projects

In this implementation activity, you will learn how to configure the system to track time spent on particular
projects.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that you, as an administrative user of the SweetLife Fruits & Jams company, are configuring accounting
for projects. The manager of the company has decided to track employee time spent on each project and bill the
customer based on employee time spent on work related to the customer's project. The employees should report
their working time on a weekly basis by using time cards.
 Implementing Project Accounting | 374

You must configure the basic time tracking configuration and specify the time tracking settings in the project
accounting preferences.

System Preparation
To prepare to perform the instructions of the activity, launch the Acumatica ERP website, and sign in to a company
with the U100 dataset preloaded; you should sign in as system administrator by using the gibbs username and the
123 password.

System Preparation
To prepare to perform the instructions of the activity, sign in to the system as system administrator by using the
gibbs username and the 123 password.

Step 1: Reviewing the Basic Configuration for Time Reporting

Make sure the minimum required configuration for time reporting has been performed by doing the following:
1. On the Enable/Disable Features (CS100000) form, make sure that the Advanced Financials feature is enabled.
2. On the Earning Type Codes (PR102000) form, review the default earning types. Make sure that the Billable
check box is selected on the Project Settings tab for the RG (Regular Hours) and OT (Overtime) earning
types, which will be used for time tracking in projects.

If the Payroll feature is disabled on the Enable/Disable Features form, earning types are defined
on the Earning Types (EP102000) form.

3. On the General Settings tab of the Time and Expenses Preferences (EP101000) form (in the Time Reporting
Settings section), make sure that Post PM and GL Transactions is specified in the Time Posting Option box.

Step 2: Reviewing the Basic Configuration for Project Accounting

Do the following to make sure the minimum required configuration has been performed for project accounting that
relates to time tracking functionality:
1. On the Enable/Disable Features (CS100000) form, make sure the Projects feature is enabled.
2. On the Projects Preferences (PM101000) form, make sure of the following:
• In the Visibility Settings section, the Time Entries and Expenses check boxes are selected.
• In the Expense Account Source box, Labor Item is specified.
• In the Expense Accrual Account Source box, Labor Item Accrual is specified.

Time Tracking Configuration: Tracking Time with Time Activities

The following section explains how to configure the system to track time spent on project by using time activities,
which an employee enters on the Activity (CR306010) form to record the provided services.

Combining of Time Cards and Time Activities

In Acumatica ERP, an employee can report working hours by using time cards in combination with time activities.
If tracking of time with time activities is configured in the system, the Track Time and Costs check box becomes
available for a time activity on the Activity (CR306010) form; in each activity, an employee provides the description
of the performed services and reports the working hours spent on these services. The reported data from the time
 Implementing Project Accounting | 375

activity is then copied to the employee time card that relates to the week that includes the date for which the time
activity has been entered. On the Employee Time Card (EP305000) form, the employee can view the details of all
time activities associated with a particular time card.
A time activity can be released individually or within the time card to which it is added. When the time card is
released, all the associated time activities are released automatically. For time activities associated with a project,
a project transaction is created during time card release. During the project billing procedure, based on the time
and material step of the billing rule configured for the account group associated with this project transaction, the
applicable customer is billed for the reported employee time spent on the project.

Configuration of Time Tracking with Time Activities

To configure the tracking of time with time activities, you perform the following general steps:
1. On the Enable/Disable Features (CS101000) form, you enable the Time Management feature.
2. On the Earning Types (EP102000) form, you select the Billable check box for the earning types that will be
specified in the time activities that must be billed within a project. The earning type determines how the
system calculates the cost of employee labor.
3. On the Activity Types (CR102000) form, you select the Track Time and Costs check box for the activity types
for which you want to track time. In the newly entered time activities of the type, the Track Time and Costs
check box will be selected by default.

Aer you perform these configuration steps, employees will be able to log project work and specify the information
required for billing (that is, the earning type for the time activity, and the total billable time spent on a particular
project).

Time Tracking Configuration: To Track Time with Time Activities

In the following implementation activity, you will learn how to configure the system for tracking time in projects by
using time activities.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that you, as an administrative user of SweetLife Fruits & Jams company, are configuring accounting for
projects. The manager of the company has decided to track employee time spent on each project and bill the
customer based on employee time spent on work related to the customer's project. The employees should report
their working time on a daily basis by using time activities.
You must configure the system for using time activities for time tracking.

System Preparation
To prepare to perform the instructions of the activity, launch the Acumatica ERP website, and sign in to a company
with the U100 dataset preloaded; you should sign in as system administrator by using the gibbs username and the
123 password.
 Implementing Project Accounting | 376

System Preparation
To prepare to perform the instructions of the activity, sign in to the system as system administrator by using the
gibbs username and the 123 password.

Step: Configuring Time Reporting for Time Activities

Do the following to make sure the minimum required configuration has been performed in the system for time
reporting by using time activities:
1. On the Enable/Disable Features (CS100000) form, make sure that the Time Management feature is enabled.
2. On the Earning Type Codes (PR102000) form, review the RG earning type. Make sure that the Billable check
box is selected for the earning type on the Project Settings tab.

If the Payroll feature is disabled on the Enable/Disable Features form, earning types are defined
on the Earning Types (EP102000) form.

3. On the Activity Types (CR102000) form, make sure the Track Time and Costs check box is selected for the
Work Item activity type, which you will use for logging time spent by projects.

Project Budgets with Cost Codes

The topics of this chapter explain how to configure cost codes to be used for classifying expenses and revenues in
projects.

Cost Codes: General Information

A cost code represents an additional classification level for project revenues and costs in a construction project.
You can associate cost codes with system documents and document lines in which projects are referenced, such as
general ledger transactions, accounts payable bills, purchase orders, accounts receivable invoices, expense entries,
time cards, and lines of project budgets.

Learning Objectives
In this chapter, you will learn how to do the following:
In this lesson, you will learn how to do the following:
• Plan the structure of cost codes to be used in construction projects
• Configure the structure of the cost code identifier and define cost codes
• Configure cost code tracking in the revenue budget lines of the project budget
• Configure cost code tracking in the cost budget lines of the project budget

Applicable Scenarios
You create cost codes and configure a project to use these cost codes if you need to further classify revenues and
expenses in a budget of a construction project.
 Implementing Project Accounting | 377

Cost Code Configuration

By tracking revenues and expenses by cost codes, you can analyze how much each project task costs, what the
revenue is, and how the tracked values compare with the budgeted ones.
To define the cost codes to be used in your projects, you need to perform the following tasks:
1. Plan the structure of cost code identifiers and the cost codes to be used based on the processes in your
organization.
2. Modify the COSTCODE segmented key based on your planned structure, if necessary.
3. Add the planned cost codes to the table on the Cost Codes (PM209500) form.
4. Configure the use of cost codes in the cost budget and revenue budget of a particular project.

You can prepare the list of cost codes in an .xlsx or .csv file and upload the file to the Cost Codes form.
Alternatively, you can add cost codes one by one on the form.

Project Budget Tracking by Cost Codes

When you create a document or a document line (or both) that you want to associate with a particular cost code,
you first specify the applicable GL account, project, and project task for the line; you then assign the appropriate
cost code to the line. In the lookup table that opens when you click the selector button on the applicable form,
the system lists the cost codes that are used in budget lines of the project you have selected for the document
or document line. The lookup table also lists the budget lines that have the same project task and the account
group that corresponds to the GL account selected for the document or document line. You can select any of the
available cost codes, or select a cost code that has not yet been used for the combination of project, project task,
and account group.
For a project, on the Summary tab (Project Properties section) of the Projects (PM301000) form, you can use the
Revenue Budget Level and Cost Budget Level boxes to specify the way the system represents budget lines and
classify revenues or expenses by cost codes as well as other factors. You do this by selecting the needed options in
the Revenue Budget Level and Cost Budget Level boxes as follows:
• If you select Task and Cost Code or Task, Item, and Cost Code in the Revenue Budget Level box, you can view
revenue budget lines by cost codes on the Revenue Budget tab of the Projects form for the project, and you
can bill the project with the selected revenue budget level for progress.
• If you select Task and Cost Code or Task, Item, and Cost Code in the Cost Budget Level box, you can view cost
budget lines by cost codes on the Cost Budget tab of the Projects form for the project. You can also bill the
project with the selected cost budget level for time and material.
You can change the cost code for each cost budget or revenue budget line manually, if needed.

Cost Codes: Configuration Prerequisites

Before starting to create a cost code, you must be sure that the system has been configured properly and that all
required entities have been created, as described in the following sections.

Enabling the Needed Features

On the Enable/Disable Features (CS100000) form, the Cost Codes feature must be enabled. On the Projects
Preferences (PM101000) form, the default settings must be saved before you start configuring the cost codes.
 Implementing Project Accounting | 378

Configuring Cost Code Identifiers

The COSTCODE segmented key on the Segmented Keys (CS202000) form defines the identifiers of cost codes in the
system. By default, this segmented key specifies that the cost code identifier is a one-segment key that consists
of four numerals. For the key, you can define how many segments it is to have, what values may be used, whether
these values should be validated, and whether auto-numbering should be used in one of the segments. You can
also divide item identifiers into segments with specific values. For more information on configuring segmented
keys, see Segmented Identifiers.
The Cost Codes (PM209500) form contains a table in which you can define cost codes. By default, the table contains
a row with 0000 in the Cost Code column and Default in the Description column. You can change the default cost
code and its description by clicking the cost code and clicking Change ID on the form toolbar.

Project Mailings

In Acumatica ERP, you can configure different formats for printable project quotes, and pro forma invoices and
accounts receivable invoices prepared for individual projects.

Project Mailing Configuration: General Information

Your organization's policies might require users to print documents of specific types, either for internal needs or for
sending them by postal mail to customers or vendors that prefer not to receive the documents through email. In
Acumatica ERP, you can define mailing settings to send particular documents to customers by email. The following
sections describe the use of mailings for sending and printing project-related documents.

Learning Objectives
In this chapter, you will learn how to do the following:
• Define mailing settings for project quotes
• Define mailing settings for pro forma invoices
• Define mailing settings for accounts receivable invoices

Applicable Scenarios
You define mailing settings to print documents as well as automatically send documents of a specific type by email.

Mailing Configuration
The functionality you use to print and send documents of a specific type by email is referred to as a mailing.
Acumatica ERP provides predefined mailings that you can configure for printing and sending different types of
documents to customers and vendors. The system generates emails for active mailings when a user selects an
action that initiates email generation.
The body of the email can be configured as one of the following:
• An Acumatica ERP report, such as a pro forma invoice, accounts receivable invoice or project quote. Reports
define how to arrange the information available in documents of specific types for emailing or printing.
On the Mailing Settings tab of the Projects Preferences (PM101000) form, where you specify the settings of
each mailing, you select the format for report-based documents: HTML, Excel, or PDF. If you select PDF, the
document will be sent as an email attachment.
 Implementing Project Accounting | 379

• Text—personalized at the moment the email is generated—based on a notification (email) template.

Placeholders used in the template will be replaced with information from the vendor or customer record.
For example, template-based emails can be used to notify customer contacts about expiration of their credit
cards. When the system generates these emails for multiple customers, placeholders are replaced by the
particular customer's information, such as card type, partial card number, and expiration date.

Project Mailing Configuration: Invoice Mailings

For individual projects, you can configure different formats for printable pro forma invoices and accounts
receivable invoices. The invoice format may depend on the project type; for instance, an installation project
may have one invoice format, and a repair project may have a different invoice format. Also, a default invoice
format can be specified for particular customers, with this format used for all projects of this customer unless the
user specifies a different format. For example, a company might use a particular invoice format for government
customers, or for customers who work with a particular bank to get loans for their projects (and this bank dictates
the invoice format).

Defining Printing Forms of Invoices for Projects

On the Mailing Settings tab of the Projects (PM301000) form, you can specify a custom format and an email
notification template that should be used for the printing and emailing of the invoices prepared for the particular
project. When you create a new project, the system copies all the predefined mailing settings from the Mailing
Settings tab of the Projects Preferences (PM101000) form, but you can override them. You can use the following
predefined mailings:
• PROFORMA: The mailing with this identifier is used to print pro forma invoices. By default, this mailing uses
the Pro Forma Invoice (PM642000) report for printing the pro forma invoice.
• INVOICE: The mailing with this identifier is used to print project-related accounts receivable invoices. By
default, this mailing uses the ProInvoice/Memo (PM641000) report, which is a copy of the Invoice/Memo
(AR641000) report, for printing the invoice.
If you need to override the printing form of pro forma invoices or accounts receivable invoices for a project, you
edit the respective mailing setting but do not edit the mailing identifier, which is the system setting. For example,
suppose you need to override the printing form of pro forma invoices for a project. For the PROFORMA mailing
of this project, you select the needed project report in the Report column of the Mailing table on the Mailing
Settings tab of the Projects form.

Printing Invoices
When you print a pro forma invoice on the Pro Forma Invoices (PM307000) form, the system uses the report
specified for the PROFORMA mailing of the corresponding project on the Mailing Settings tab of the Projects
(PM301000) form. If the corresponding project has no mailing setting with the PROFORMA identifier, an error occurs.
When you print an project-related accounts receivable invoice on the Invoices and Memos (AR301000) form, the
system uses one of the following reports:
• The report specified for the INVOICE mailing, if one is specified, of the corresponding project on the Mailing
Settings tab of the Projects (PM301000) form.
• The report specified for the customer on the Mailing Settings tab of the Customers (PM303000) form if the
INVOICE mailing of the corresponding project is not active. For more information about mailing settings for
customers, see Mailings for Customers.
• The Invoice/Memo (AR641000) report if the INVOICE mailing of the corresponding project and the customer is
not active.
 Implementing Project Accounting | 380

Project Mailing Configuration: Pro Forma Invoices

You can email a pro forma invoice with any status to the customer for review. To do this, you select the invoice and
then invoke the Email command on the form toolbar of the Pro Forma Invoices (PM307000) form.
The email address of the recipient is taken from the contact information specified on the Bill-to Contact section
of the Addresses tab of the Pro Forma Invoices form. This information is copied to each pro forma invoice from the
project from the Bill-To section of the Summary tab of the Projects (PM301000) form and can be modified at the
invoice or project level.
The system generates the email in accordance with the settings of the PROFORMA mailing of the project on the
Mailing & Printing tab of the Projects form. The mailing settings of the project are copied from the Mailing &
Printing tab of the Projects Preferences (PM101000) form and can be overridden.
The created email activity is listed in the Tasks & Activities dialog box that opens by clicking Activities on the form
title bar. The system also attaches a printable version of the pro forma invoice to the email.

Project Mailing Configuration: Project Quotes

You can email a project quote that has been submitted and approved (if approval of project quotes is set up in the
system) to the customer for review if the status of the project quote is Prepared or Sent. To do this, while viewing
the quote on the Project Quotes (PM304500) form, you invoke the Email action on the form toolbar. The system
creates an email activity and lists the activity on the Activities tab of the form; it also attaches a printable version of
the quote to the email, sends the email the recipient, and changes the status of the quote to Sent.
The email address of the recipient is taken from the contact information specified on the Addresses tab of the
Project Quotes form.

The system generates the email in accordance with the settings of the PMQUOTE mailing of the project template
selected for the project quote. The settings of the project template on the Mailing & Printing tab of the Project
Templates (PM208000) form are copied from the Mailing & Printing tab of the Projects Preferences (PM101000)
form and can be overridden at any level, if needed.
 Implementing Service Management | 381

Implementing Service Management

This chapter describes the minimum required configuration of the service management functionality in Acumatica
ERP.

Basic Service Management Configuration

If you plan to provide field service functionality in Acumatica ERP, before you start creating entities and processing
documents related to service management in the system, you must perform the necessary configuration. This
configuration includes enabling the necessary features, specifying the service management preferences, creating
the branch locations that provide services, defining the billing cycles to be used for customers, and specifying
employee and customer settings.
If you plan to offer the provision of inventory items as part of providing field services, you must define the
necessary settings related to the configuration of inventory management and sales order management.
In this chapter, you will read about the minimum configuration needed to provide the service management
functionality.

Basic Service Management Configuration: General Information

This topic provides a general overview of the configuration steps that you have to perform before you can start
using the service management functionality in Acumatica ERP. You perform this minimum configuration of service
management if the company is going to create service orders, schedule appointments, manage staff members that
attend appointments, and sell services (and possibly stock items).

Learning Objectives
In this chapter, you will learn how to perform the initial configuration of the basic service management
functionality. In particular, you will do the following:
In this lesson, you will learn how to perform the initial configuration of the basic service management functionality.
In particular, you will do the following:
• Learn about the settings that have to be specified
• Enable the needed system features
• Review the minimum required settings for the service management functionality

Applicable Scenarios
You configure the service management functionality in the following cases:
• You have initially implemented Acumatica ERP, and the Service Management feature is included in your
license.
• You need to configure service management in a previously configured, fully functioning environment.
• Optionally, you want to include sales of inventory items in the provision of field services.

Prerequisites
To prepare the system for the implementation of service management, you perform the following general steps:
 Implementing Service Management | 382

1. You prepare an instance of Acumatica ERP for further implementation by enabling the default set of
features, activating the product license, and configuring system-wide security policies. For details, see
Preparing an Instance for Implementation.

Make sure that the license for Acumatica ERP includes the Service Management feature.

2. You complete the initial system configuration and implement the minimum general ledger functionality.
The service management functionality can be tightly integrated with other Acumatica ERP functional areas,
including general ledger, accounts payable, and organization structure. These areas do not require any
change in their configuration when service management is implemented. For details about performing the
initial system configuration, see Company Without Branches, Company with Branches that Do Not Require
Balancing: General Information, or Company with Branches that Require Balancing (depending on your
company's structure).

Workflow of the Implementation of Service Management

To prepare the system for service management functionality, you first perform the following general steps, which
are described in this lesson:
1. On the Enable/Disable Features (CS100000) form, you enable the Service Management feature.
2. On the Work Calendar (CS209000) form, you define the work calendar. The work calendar reflects the work
days, the work times for each day, and the unpaid break time of staff members (that is, employees that are
involved in field service processes).
3. On the Numbering Sequences (CS201010) form, you create the numbering sequence for billing batches,
the numbering sequences to be used to number documents generated by service management, and the
numbering sequence to be used to assign identifiers to the staff schedule rules. .
We recommend that you use naming conventions for numbering sequences to differentiate service
management documents from other documents generated in the system. For details about numbering
sequences, see Use of Numbering Sequences.
4. On the Service Management Preferences (FS100100) form, you specify the numbering sequences and the
work calendar to be used for service management.

Other lessons of this part of the guide describe the additional steps you perform to configure service management
functionality, which include the following steps:
1. On the Branch Locations (FS202500) form, you create at least one branch location that represents the
company office of the field service personnel. For details, see Branch Locations: General Information.
2. On the Service Order Types (FS202300) form, you create the service order types that suit the company's
processes. These types will be used to define the general settings for service orders and appointments of the
particular type. For details, see Service Order Types for Inventory Sales.
3. Aer you have created the needed billing cycles, on the Billing Cycles (FS206000) form (which define the
way billing documents are generated for the services and inventory items provided to customers), on the
Customers (AR303000) form, you add the customers that are expected to request the company's services (if
they are not already defined in the system), and you assign the necessary billing cycles to these customers.
For details, see Billing Cycles: General Information
4. On the Service Classes (FS400900) form, you create at least one item class to be used for creating the
services provided by your company. For details, see Service Classes: General Information
5. On the Services (FS400800) form, you create the service-related items that your company is going to provide
and assign a service-specific item class to each service. For details, see Services: General Information
6. On the Employees (EP203000) form, you define the employees to be involved in field service processes and
define them as service management staff members. For details, see Staff Members: General Information.
 Implementing Service Management | 383

Basic Service Management Configuration: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for the
processing of service orders and their appointments that may include stock items, and to specify settings that
affect this processing workflow.

Prerequisite Configuration
We recommend that before you initially set up the service management functionality, you make sure the needed
entities have been created, and settings have been specified, as summarized in the following checklist.

Form Criteria to Check

Multiple forms Make sure that the minimum company settings are
specified, as described in Company Without Branches,
Company with Branches that Do Not Require Balancing,
or Company with Branches that Require Balancing (de-
pending on your company structure).

Multiple forms To offer the provision of inventory items as part of pro-

viding field services, make sure that the sales order
management configuration has been implemented, as
described in Order Management with Inventory Configu-
ration: Implementation Checklist .

Employees (EP203000) form Make sure that the employees to be involved in field
service processes have been created. For details, see
Employee Settings.

Implementation Checklist
Once the needed prerequisites are met, you should navigate to the forms listed below and perform the tasks
described in the table to be able to use the basic service management functionality.

Form Things to Do Notes

Enable/Disable Features (CS100000) Enable the Service Management  

form feature.

Work Calendar (CS209000) form Create the calendar with the staff  
members' work days, work times
for each day, and unpaid break
time. For details, see Basic Service
Management Configuration: Imple-
mentation Activity.
 Implementing Service Management | 384

Form Things to Do Notes

Numbering Sequences (CS201010) Create the numbering sequences  

form for service orders, staff members'
schedules, and field service billing
documents. For details, see Basic
Service Management Configuration:
Implementation Activity.

Service Management Preferences Specify the necessary numbering  

(FS100100) form sequences and work calendar.

Billing Cycles (FS206000) Create the necessary billing cycles  

(which define the way billing doc-
uments are generated for the ser-
vices provided to customers). For
details, see Billing Cycles.

Customers (AR303000) form Do the following:  

• Create all customers that are ex-
pected to request the compa-
ny's services.
• Assign the necessary billing cy-
cles to customers who may be
billed for services.

Employees (EP203000) form Define the employees to be in-  

volved in field service processes as
staff members—that is, select the
Staff Member in Service Manage-
ment check box for these employ-
ees. For details, see Staff Members.

Order Types (SO201000) form To offer the provision of inventory  

items as part of providing field ser-
vices, make sure that for the sales
order types that will be used for the
field service processes, the Enable
Field Services Integration check
box is selected. For details, see Ba-
sic Service Management Configura-
tion: Implementation Activity.

Service Order Types (FS202300) Create the service order types that To generate billing documents that
form suit the company's processes, may include both services and in-
as described in the Service Order ventory items, you select the Sales
Types chapter. Orders or SO Invoices option in the
Generated Billing Documents box
on the General tab of the form.

Branch Locations (FS202500) form Create all branch locations that  

represent company offices. For de-
tails, see Branch Locations.
 Implementing Service Management | 385

Optional Settings
Depending on your company's processes, you may have to check the settings described in the table below.

Form Things to Check

Service Areas (FS201900) form If staff members are to work within a certain geograph-
ical area, make sure that the service areas have been
defined and staff members have been assigned to the
areas. For details, see Service Areas.

Skills (FS206000) and Employees (EP203000) forms If the assignment of staff members has to be per-
formed based on skills that are necessary for the ser-
vice, make sure that the skills have been defined and
assigned to staff members. For details, see Skills.

License Types (FS200900) and Services (FS400800) If the assignment of staff members has to be per-
forms formed based on licenses that prove that a staff mem-
ber can perform a service, make sure that the types of
these licenses have been defined and assigned to the
appropriate services. For details, see Licenses.

Licenses (FS201000) and Employees (EP203000) forms If the assignment of staff members has to be per-
formed based on licenses that prove that a staff mem-
ber can perform a service, make sure that the licens-
es have been entered and assigned to the needed staff
members. For details, see Licenses.

Item Classes (IN201000) form Make sure that the item classes that contain the de-
fault settings of the company's services have been cre-
ated.

Non-Stock Items form If services have been created in the system, make sure
that the skills that are required for performing these
services have been assigned to them.
If services have been created in the system, make sure
that the type of the licenses that are required for per-
forming these services have been assigned to them.

Basic Service Management Configuration: Implementation Activity

In this implementation activity, you will learn how to enable the Service Management feature and review the basic
service management settings.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.
 Implementing Service Management | 386

Story
Suppose that you are an administrative user of the SweetLife Service and Equipment Sales Center. You are
configuring the minimum required functionality to prepare the system for the processing of service orders and the
scheduling and processing of appointments.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
1. The minimum system configuration, which is described in Company with Branches that Do Not Require
Balancing: General Information, has been performed.
2. The SWEETLIFE company has been created on the Companies (CS101500) form. This company has multiple
branches created on the Branches (CS102000) form, including SWEETEQUIP (Service and Equipment Sales
Center).
3. On the Numbering Sequences (CS201010) form, the FSPOST - SM Posting Batches, FSSO - Service Orders, and
FSSCHEDULE - Staff Members' Schedules numbering sequences have been created.
4. On the Work Calendar (CS209000) form, the MAIN work calendar has been created to reflect the work days
and times, and the unpaid break time of staff members.
5. On the Service Management Preferences (FS100100) form, the needed numbering sequences and work
calendar have been specified.

Process Overview
To set up the basic service management settings, you will do the following:
1. On the Enable/Disable Features (CS100000) form, you will enable the Service Management feature.
2. On the Numbering Sequences (CS201010) form, you will review the following numbering sequences for
service management entities: the numbering sequence to be used to assign identifiers to batches of billing
documents, and the numbering sequence to be used for the reference numbers of the service orders of the
service order types to be created in other activities of this part of the guide.
3. On the Work Calendar (CS209000) form, you will review the calendar with the staff members' work days and
work times for each day.
4. On the Service Management Preferences (FS100100) form, you will ensure that the numbering sequences
and the work calendar are specified.

System Preparation
Before you start performing the initial configuration of the service management functionality, launch the
Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. You should sign in as a system
administrator by using the gibbs username and the 123 password.

Step 1: Enabling the Service Management Feature

To enable the Service Management feature, do the following:
1. Open the Enable/Disable Features (CS100000) form.
2. On the form toolbar, click Modify, which gives you the ability to change the set of selected features.
3. Select the Service Management check box.
4. On the form toolbar, click Enable. This saves your changes and enables the currently selected features.
 Implementing Service Management | 387

Step 2: Reviewing Numbering Sequences

To review the numbering sequences that have been created for service management batches, do the following:
1. Open the Numbering Sequences (CS201010) form.
2. In the Summary area, in the Numbering ID box, click the magnifier button.
3. In the lookup table that opens, type FSPOST in the Search box, and double-click the FSPOST item in the
table to select it.
On the form, notice that the FSPOST - SM Posting Batches numbering sequence has the following settings:
• Start Number: SM000001
• End Number: SM999999
4. In the Numbering ID box, click the magnifier button again.
5. In the lookup table that opens, type FSSO in the Search box, and double-click the FSSO item in the table to
select it.
6. On the form, notice that the FSSO - Service Orders numbering sequence has the following settings:
• Start Number: 000001
• End Number: 999999
7. In the Numbering ID box, click the magnifier button again, and make sure that the FSSCHEDULE - Staff
Members' Schedules numbering sequence has also been created.
In Step 4 of this activity, you will make sure that the FSPOST - SM Posting Batches and FSSCHEDULE - Staff
Members' Schedules sequences are specified on the Service Management Preferences (FS100100) form. You
will specify the FSSO - Service Orders sequence on the Service Order Types (FS202300) form when you create
the service order types.

Step 3: Reviewing the Work Calendar

To review the work calendar, do the following:
1. On the Work Calendar (CS209000) form, click MAIN in the Calendar ID box.
2. Make sure that the following settings are specified for the calendar:
a. Calendar ID: MAIN
b. Description: Main Calendar
c. Time Zone: (GMT-05:00) Eastern Time (US & Canada)
3. On the Calendar Settings tab, ensure that the Monday, Tuesday, Wednesday, Thursday, and Friday check
boxes are selected, and the Sunday and Saturday check boxes are cleared.
4. In the boxes of the Start Time column, ensure that 10:00 AM is specified for all the selected days of the week.
5. In the boxes of the End Time column, ensure that 6:00 PM is specified for all the selected days of the week.

Step 4: Reviewing the Service Management Preferences

To make it possible for the service management functionality to be used, the numbering sequences and work
calendar need to be specified in the service management preferences. Do the following:
1. Open the Service Management Preferences (FS100100) form.
2. On the General tab, in the Numbering Settings section, ensure that the following settings are specified (as
shown in the following screenshot):
• Batch Numbering Sequence: FSPOST - SM Posting Batches (Item 1 on the screenshot)
 Implementing Service Management | 388

• Staff Schedule Numbering Sequence: FSSCHEDULE - Staff Members' Schedules (Item 2)

3. On the Calendars & Maps tab (Item 3), in the Calendar Settings section, make sure that MAIN - Main
Calendar is selected in the Work Calendar box.

Figure: Service management settings

If these configuration steps have been performed, the service management forms are available, and the system is
set up for the use of the service management capabilities.

Branch Locations

The topics of this chapter explain how to configure branch locations. A branch location in Acumatica ERP is a
physical location (for example, an office) to be used to provide services.

Branch Locations: General Information

In Acumatica ERP, branch locations represent physical locations (such as offices) from which your staff members
depart to attend appointments. A branch of your company can have multiple branch locations or only one branch
location.

Learning Objectives
In this chapter, you will learn how a branch location is used in service management, and you will review and create
branch locations to become familiar with their settings.
In this lesson, you will learn how a branch location is used in service management, and you will review and create
branch locations to become familiar with their settings.

Applicable Scenarios
You create a branch location in the system in the following cases:
• When you initially implement the service management functionality
 Implementing Service Management | 389

• When your company has opened a new office within a branch, and you need to create the new office (branch
location) in the system

Branch Locations: Implementation Activity

In this implementation activity, you will learn how to create a branch location in the system.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that an administrative user of the SweetLife Service and Equipment Sales Center previously created the
WEST BRIGHTON branch location, which represents the main office of the Service and Equipment Sales Center
(which is the SWEETEQUIP branch in the system. The company is now opening a new office of this branch, which is
going to provide services.
Acting as an administrative user, you will create a new branch location in the system.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• The minimum system configuration, which is described in Company with Branches that Do Not Require
Balancing: General Information, has been performed.
• The SWEETLIFE company has been created on the Companies (CS101500) form. This company has multiple
branches created on the Branches (CS102000) form, including SWEETEQUIP (Service and Equipment Sales
Center).
• On the Service Management Preferences (FS100100) form, the minimum settings have been specified,
including specifying the numbering sequences and work calendar, for the service management functionality
to be used.

Process Overview
On the Branch Locations (FS202500) form, you will specify the settings of the new branch location.

System Preparation
Before you begin create a branch location, do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. You should
sign in as a system administrator by using the gibbs username and the 123 password.
2. In the company to which you are signed in, be sure that you have enabled the Service Management feature
on the Enable/Disable Features (CS100000) form.
3. On the Company and Branch Selection menu on the top pane of the Acumatica ERP screen, select the
Service and Equipment Sales Center branch.

Step: Creating a Branch Location

To create a new branch location, do the following:
 Implementing Service Management | 390

1. Open the Branch Locations (FS202500) form.

2. On the form toolbar, click Add New Record.
3. In the Branch Location ID box, type BROOKLYN.
4. In the Description box, enter Brooklyn Location.
5. On the General tab, in the Main Address section, specify the following settings:
• Address Line 1: 1230 Surf Ave
• City: Brooklyn
• Country: US
• State: NY
• Postal Code: 11224
6. In the Inventory Defaults section, in the Default Warehouse box, select EQUIPHOUSE.
7. On the form toolbar, click Save.

Now the SWEETEQUIP branch has two branch locations that will be providing services: WEST BRIGHTON and
BROOKLYN.

Service Order Types

As part of the minimum configuration of service management, you need to configure service order types, which
provide the general settings for service orders and appointments of a particular type. Service order types make it
easier to define service orders and appointments in the system and specify the appropriate settings for them.

Service Order Types: General Information

In most companies, service documents can be used for different purposes. For example, a service order and
appointment can be created for providing a standard type of services, such as repair or maintenance, at a
customer's location. A service document can also be intended for organizing internal appointments, or can be used
for creating quotes. In those cases, different general and billing settings are specified in the service document.
In Acumatica ERP, you create service order types with different settings. When you create a service order or
appointment and select the type, the settings of the type are copied to the service order or appointment.

Learning Objectives
In this chapter, you will learn how to create a service order type and specify the needed settings.
In this lesson, you will learn how to create a service order type and specify the needed settings.

Applicable Scenarios
You configure service order types in the following cases:
• When you are initially configuring service management in Acumatica ERP. In this case, you create the
service order types that support your company's business processes. The use of service order types makes it
easier for users to create and process service orders and their appointments in the system.
• When you need to create a new service order type to support a new business process.
 Implementing Service Management | 391

Service Order Types: General Settings

This topic describes the specific settings that you specify when you are creating a service order type on the Service
Order Types (FS202300) form.

Behavior of the Service Order Type

Depending on the option that you select for the service order type in the Behavior box on the General tab of the
Service Order Types (FS202300) form, the system makes particular UI elements and tabs available or unavailable
on the Service Order Types form, as well as on the Service Orders (FS300100) and Appointments (FS300200) form for
service orders and appointments, respectively, of the type. You can select one of the following behaviors for the
service order type:
• Regular: Service orders and appointments of the type will include the usual services, such as repair,
maintenance, installation, and training. For this behavior, you can specify all the settings except the route-
related settings.
• Internal: The type includes service orders of your own company, and appointments take place inside the
company. Because there is no customer involved with the service orders and appointments of a type with
this behavior, the posting, customer, and route settings are unavailable for service orders and appointments
of this type.
• Quote: The type is designed for quotes (any of which can be converted into a service order if the customer
agrees to the quote). For types with this behavior, billing settings are unavailable on the Service Order Types
form.
• Route: Service orders of the type include the settings of the route between the locations where services are
performed. For service order types with this behavior, the route can be specified on the Appointments form.
For details on routes, see the Route Management guide.

Default Contact Information Settings

For service orders and appointments of the service order type, you can define the default source of the address and
contact information. In the Default Settings section of the General tab of the Service Order Types (FS202300) form,
you select one of the following options in the Take Address and Contact Information From box:
• Business Account: By default, the address and contact settings are copied from the Customers (AR303000)
form. Note that before the settings are copied, the customer must be selected in the Customer box of the
Summary area of the Appointments (FS300200) or Service Orders (FS300100) form.
• Contact: By default, the address and contact settings are copied from the Contact section of the Contacts
(CR302000) form. Note that before the settings are copied, the contact person must be selected in the
Contact box on the Settings tab of the Appointments or Service Orders form.
• Branch Location: By default, the address and contact settings are copied from the General tab (the Main
Contact and Main Address section, respectively) of the Branch Locations (FS202500) form. You select this
option when appointments of the service order usually take place at the address of your branch location.

Billing Settings
The billing settings determine the type of customer billing documents that are generated for appointments or
service orders of the service order type, and the general settings of these documents. You specify these settings
in the Billing Settings section of the General tab of the Service Order Types (FS202300) form. In the Generated
Billing Documents box of this section, you select one of the following options:
• AR Documents if you need to generate billing documents for services only (that is, if the document will not
include inventory items). With this option selected, the system generates an accounts receivable invoice
 Implementing Service Management | 392

when a user generates a billing document for a service order or an appointment of the type. The invoice can
then be processed and the payment collected.
The Create AP Bills for Negative Balances check box becomes available if you select this option. If you
select this check box, for a service order or appointment with a negative balance, the system instead creates
an accounts payable bill.
• Sales Orders if you need to generate billing documents that may include both services and inventory items
(which may involve shipping) that were sold to customers. With this option selected, the system initially
generates a sales order when a user generates a billing document for a service order or an appointment of
the type. Optionally, you can create shipments and add freight costs for the sales order. You then generate
the invoice.
If you configure quick processing for the service order type, the invoice can be generated automatically
along with the sales order.

Integration with field services also has to be enabled for the sales order type so that you can
generate sales orders from forms related to field services. That is, the Enable Field Services
Integration check box has to be selected for the necessary order type on the General tab of
the Order Types (SO201000) form.

• SO Invoices if you need to generate billing documents that may include both services and inventory items
(which do not need to be shipped) that were sold to customers along with the services. With this option
selected, the system initially generates an SO invoice when a user generates a billing document for a service
order or an appointment of the type.
If you configure quick processing for the service order type, the invoice can be processed automatically in
the system.
• Project Transactions if you need to generate billing documents for projects. With this option selected, the
system initially generates a project transaction and issue (if the appointment or service order contains stock
items) when a user generates a billing document for a service order or an appointment.
For each appointment or service order that is billed, one project transaction batch and one issue (if the
appointment or service order contains stock items) will be created, even if the Customer Order, External
Reference, or Time Frame option button has been selected under Group Billing Documents By on the
Billing Cycles (FS206000) form.
If a service order type for which project transactions are generated is assigned to an appointment or service
order, the following restrictions are applied to the appointment or service order:
• The system will not calculate taxes.
• Users cannot apply prepayments.
• Users cannot select accounts and subaccounts.
• Users cannot assign a salesperson to the appointment or service order and make it commissionable.
• None if you do not need to generate billing documents for services of the service order type.
Aer you select the appropriate option in the Generated Billing Documents box, you specify the other settings of
the section. The option you select in the Generated Billing Documents box determines the set of elements in the
section. The settings you specify for these elements determine the generation of these billing documents.

Service Order Types: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for the creation
of service order types.
 Implementing Service Management | 393

Prerequisites
Before you create a service order type to be used for service orders and appointments for which sales orders or
SO invoices will not be generated, you should make sure the minimum configuration of service management
functionality has been performed, as described in Basic Service Management Configuration: Implementation Activity.

Implementation Checklist
We recommend that before you start to create service order types, you make sure the needed features have been
enabled and entities have been configured, as summarized in the following checklist.

Form Criteria to Check

Enable/Disable Features (CS100000) form The Service Management feature has been enabled.

Numbering Sequences (CS201010) form At least one numbering sequence for service orders
has been created.

Credit Terms (CS206500) form At least one set of credit terms has been created.

Minimum Required Settings for a Service Order Type

For each service order type that you are going to use, you should specify the following minimum configuration
settings.

Form Settings to Specify

The Summary area of the Service Order Types • The identifier of the service order type
(FS202300) form • The description of the service order type

The General tab of the Service Order Types form • The Numbering Sequence to be used to assign ser-
vice order reference numbers to service orders of
the type
• The needed Behavior of the service order type is
selected
• The AR Documents option in the Generated Billing
Documents box, which indicates that an AR docu-
ment will be generated to bill the customer for ser-
vices specified in service orders and appointments
of the service order type
• The needed option in the Default Terms for AR
and SO box

Other Settings That Affect the Workflow

For a particular service order type, you can specify additional settings on the General tab of the Service Order
Types (FS202300) form that will affect the processing of service orders and appointments of this type:

• If the Complete Service Orders When Its Appointments Are Completed check box (General Settings
section) is selected, the system changes the status of a service order of the type to Completed when all
appointments of this service order have the Completed status. If this check box is cleared, a user has to
manually complete the service order.
 Implementing Service Management | 394

• If the Close Service Orders When Its Appointments Are Closed check box (General Settings section) is
selected, the system changes the status of a service order of the type to Closed when all appointments of
this service order have the Closed status. If this check box is cleared, a user has to manually close the service
order.
• If the Require Contact check box (General Settings section) is selected, users have to select a contact
person in the Contact box on the Settings tab of the Service Orders (FS300100) or Appointments (FS300200)
form when they create service orders or appointments of this service order type. If this check box is cleared,
the service orders and appointments of the type can be created without the contact person being specified.
• If the Require Customer Signature on Mobile App check box (General Settings section) is selected, before
a user completes an appointment of the type by using a mobile device, the customer's signature has to be
obtained and saved in the mobile app. If this check box is cleared, the user can complete an appointment of
the type without the customer's signature.
• If the Bill Only Closed Appointments check box (Billing Settings section) is selected, billing documents
can be generated only for closed appointments of the service order type. If this check box is cleared, billing
documents an be generated for appointments of the type that are not closed.
To simplify the process of creating service orders and appointments in the system, you can leave the default
settings.

Service Order Types Without Inventory Sales: To Create a Service Order Type with
AR Documents Generated for Billing

In this implementation activity, you will learn how to create a service order type for service orders and
appointments that provide services only, with AR documents generated as the billing documents.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that the SweetLife Service and Equipment Sales Center receives an order for consulting services. Acting
as an administrative user, you need to create a service order type for service orders and appointments that include
only services (that is, no inventory items can be included). AR invoices will be used to bill the customers.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• The minimum system configuration, which is described in Company with Branches that Do Not Require
Balancing: General Information, has been performed.
• The SWEETLIFE company has been created on the Companies (CS101500) form. This company has multiple
branches created on the Branches (CS102000) form, including SWEETEQUIP (Service and Equipment Sales
Center).
• On the Service Management Preferences (FS100100) form, the minimum settings have been specified,
including specifying the numbering sequences and work calendar, for the service management functionality
to be used.
• On the Credit Terms (CS206500) form, the 30D - 30 Days credit terms have been created.
 Implementing Service Management | 395

Process Overview
You will create a new service order type on the Service Order Types (FS202300) form and specify the needed
settings to cause AR documents to be generated for billing.

System Preparation
Before you start creating a service order type, do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. You should
sign in as a system administrator by using the gibbs username and the 123 password.
2. In the company to which you are signed in, be sure that you have enabled the Service Management feature
on the Enable/Disable Features (CS100000) form.
3. On the Company and Branch Selection menu on the top pane of the Acumatica ERP screen, select the
Service and Equipment Sales Center branch.

Step: Creating the Service Order Type

To create the new service order type for service orders and appointments for which AR documents will be
generated as billing documents, do the following:
1. On the Service Order Types (FS202300) form, add a new record.
2. In the Summary area, enter the following settings:
• Service Order Type: CNLS
• Description: Consulting
3. On the General tab, in the Numbering Sequence box of the General Settings section, select FSSO.
4. In the Behavior box, make sure Regular is selected.
5. In the Default Settings section, in the Take Address and Contact Information From box, make sure
Business Account is selected.
6. In the Billing Settings section, select AR Documents in the Generated Billing Documents box.
7. In the Default Terms for AR and SO box, select 30D - 30 Days.
8. Select the Bill Only Closed Appointments check box.
9. On the form toolbar, click Save.

Service Order Types: To Create a Service Order Type for Quotes

In this implementation activity, you will learn how to create a service order type for quotes that include services.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.
 Implementing Service Management | 396

Story
Suppose that the SweetLife Service and Equipment Sales Center sends quotes with the details of the services and
the stock items that will be used during the appointments. These quotes are later converted to service orders.
Acting as an administrative user, you need to create a service order type for quotes.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• The minimum system configuration, which is described in Company with Branches that Do Not Require
Balancing: General Information, has been performed.
• The SWEETLIFE company has been created on the Companies (CS101500) form. This company has multiple
branches created on the Branches (CS102000) form, including SWEETEQUIP (Service and Equipment Sales
Center).
• On the Service Management Preferences (FS100100) form, the minimum settings have been specified,
including specifying the numbering sequences and work calendar, for the service management functionality
to be used.

Process Overview
In this activity, you will create a service order type for quotes on the Service Order Types (FS202300) form and
specify the needed settings.

System Preparation
Before you start creating a service order type, do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. You should
sign in as a system administrator by using the gibbs username and the 123 password.
2. In the company to which you are signed in, be sure that you have enabled the Service Management feature
on the Enable/Disable Features (CS100000) form.
3. On the Company and Branch Selection menu on the top pane of the Acumatica ERP screen, select the
Service and Equipment Sales Center branch.

Step: Creating a Quote Service Order Type

To create the new service order type for quotes, do the following:
1. On the Service Order Types (FS202300) form, add a new record.
2. In the Summary area, enter the following settings:
• Service Order Type: QUOT
• Description: Quotes
3. On the General tab, in the Numbering Sequence box, select FSSO.
4. In the Behavior box, select Quote.
The system removes the Billing Settings section from the tab.
5. In the Default Settings section, in the Take Address and Contact Information From box, make sure that
Business Account is selected.
6. On the form toolbar, click Save.
 Implementing Service Management | 397

Service Order Types: To Create a Service Order Type for Internal Appointments

In this implementation activity, you will learn how to create a service order type for the company's internal service
orders and appointments.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that the SweetLife Service and Equipment Sales Center periodically provides internal training for its staff
members. Acting as an administrative user, you need to create a service order type for appointments that take
place inside the company.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• The minimum system configuration is performed as described in Company Without Branches: General
Information.
• The minimum configuration of the service management functionality is performed as described in Basic
Service Management Configuration: Implementation Activity.

Process Overview
You will create a new service order type on the Service Order Types (FS202300) form and specify the needed
settings for AR documents to be generated for billing.

System Preparation
Before you start configuring a service order type, do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded; you should
sign in as system administrator by using the gibbs username and the 123 password.
2. As a prerequisite activity, in the company to which you are signed in, be sure you have enabled the Service
Management feature on the Enable/Disable Features (CS100000) form.
3. On the Company and Branch Selection menu, on the top pane of the Acumatica ERP screen, select the
Service and Equipment Sales Center branch.

Step: Creation of the Service Order Type

To create the new internal service order type, do the following:
1. Open the Service Order Types (FS202300) form.
2. On the form toolbar, click Add New Record.
3. In the Summary area, enter the following settings:
• Service Order Type: INTR
• Description: Internal Training
 Implementing Service Management | 398

4. On the General tab, in the Numbering Sequence box, select FSSO.

5. In the Behavior box, select Internal.
The system removes the Billing Settings section from the tab.
6. On the form toolbar, click Save.

Service Order Types: To Create a Service Order Type for Route Appointments

In this implementation activity, you will learn how to create a service order type for the company's service orders
and appointments that are a part of route management.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that the SweetLife Service and Equipment Sales Center periodically performs route management. Acting
as an administrative user, you need to create a service order type for route appointments.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• The minimum system configuration is performed as described in Company Without Branches: General
Information.
• The minimum configuration of the service management functionality is performed as described in Basic
Service Management Configuration: Implementation Activity.
• On the Credit Terms (CS206500) form, the 30D - 30 Days.

Process Overview
In this activity, you will create a service order type for service orders and appointments that are a part of route
management on the Service Order Types (FS202300) form and specify the needed settings.

System Preparation
Before you start configuring a service order type, do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded; you should
sign in as system administrator by using the gibbs username and the 123 password.
2. As a prerequisite activity, in the company to which you are signed in, be sure you have enabled the Service
Management feature on the Enable/Disable Features (CS100000) form.
3. On the Company and Branch Selection menu, on the top pane of the Acumatica ERP screen, select the
Service and Equipment Sales Center branch.

Step: Creation of the Service Order Type

To create the new service order type for route appointments, do the following:
 Implementing Service Management | 399

1. Open the Service Order Types (FS202300) form.

2. On the form toolbar, click Add New Record.
3. In the Summary area, enter the following settings:
• Service Order Type: RTS
• Description: Routes
4. On the General tab, in the Numbering Sequence box of the General Settings section, select FSSO.
5. In the Behavior box, select Route.
6. In the Default Settings section, in the Take Address and Contact Information From box, make sure
Business Account is selected.
7. In the Billing Settings section, select AR Documents in the Generated Billing Documents box.
8. In the Default Terms for AR and SO box, select 30D.
9. Select the Bill Only Closed Appointments check box.
10.On the form toolbar, click Save.

Service Order Types: Tracking of Staff Member Time

The time that staff members spend on attending appointments or performing services can be reported
automatically on the Employee Time Activities (EP307000) form. To enable the automatic reporting of time, you
need to appropriately configure service order types related to appointments and services for which time has to be
tracked.

Configuration of the Tracking of Time Activities for Staff Members

To make the system automatically create the applicable time activities for staff members on the Employee Time
Activities (EP307000) form for the time they spend during the appointment, you should configure the system as
follows:
1. You ensure that the Time Management feature is enabled on the Enable/Disable Features (CS100000) form.
2. You ensure that the required settings have been specified on the Time and Expenses Preferences (EP101000)
form.
3. You select the Enable Time & Expenses Integration check box in the General Settings section of the
General tab on the Service Management Preferences (FS100100) form.
4. For each service order type for which time activities should be created, on the General tab (Integrating
with Time & Expenses section) of the Service Order Types (FS202300) form, you do the following:
• You select the Automatically Create Time Activities from Appointments check box.
• In the Default Earning Type box, you select the default earning type to be used for the hours spent
performing the appointments.

You can also specify an earning type for each service in the Field Service Defaults section of
the Price/Cost tab on the Non-Stock Items (IN202000) form. The earning type for the service
has a higher priority than the default earning type for the service order type.

5. Optional: On the Time Behavior tab of the Service Order Types form, you can configure the system to insert
particular time-related settings when an appointment is started or completed.
6. For each staff member to perform services, on the Users (SM201010) form, you verify that the Linked Entity
box is filled with the user name.
7. For each staff member to perform services, you should do the following:
 Implementing Service Management | 400

• On the Users (SM201010) form, you verify that the Linked Entity box is filled with the user name.
• By using the Employees (EP203000) form, you create a corresponding employee account in the system.

Service Order Types: Attributes

An attribute is a site-defined property (for instance, industry or problem type) that gives users the ability to specify
information for objects in the system beyond the preconfigured settings on the data entry forms. In the settings of
a service order type, you can specify attributes that can help your company classify service orders, appointments,
and service schedules.

Specification of Attributes for the Service Order Type

You specify the applicable set of attributes for a particular service order type on the Attributes tab of the Service
Order Types (FS202300) form. On this tab, you can select attributes for the type only if they have already been
defined in the system. If you need to define a new attribute, you can use the Attributes (CS205000) form. Then you
will be able to select the new attribute for any service order type.

Use of Attributes in Service Orders, Appointments, and Service Schedules

The attributes that you specify on the Attributes tab of the Service Order Types form will be listed for service
orders and appointments of this service order type on the Attributes tab of the Service Orders (FS300100) and
Appointments (FS300200) forms, respectively. When a user creates a service order or appointment, the user specifies
its values for the applicable attributes.
Similarly, the system copies the active attributes from the Attributes tab of the Service Order Types form to the
service schedules of this service order type on the Attributes tab of the Service Contract Schedules (FS305100) and
Route Service Contract Schedules (FS305600) forms. When a user creates a service schedule, the user specifies the
values for the applicable attributes. The listed attributes and their values will be copied to the Attributes tab of the
Appointments form for the appointments generated according to the schedule.

Control of Attributes of a Service Order Type

When you add or edit the list of attributes on the Attributes tab of the Service Order Types (FS202300) form,
you can specify settings that control the use of the attributes on the Service Orders (FS300100), Appointments
(FS300200), Service Contract Schedules (FS305100), and Route Service Contract Schedules (FS305600) forms. You
can specify the following for each listed attribute on the Attributes tab of the Service Order Types form:
• Whether the attribute is required—that is, whether a user must specify a value for the attribute when
creating a service order, appointment, or service schedule of the service order type. If the Required check
box is selected, a user must specify a values for the attribute.
• Whether the system inserts a default value for the attribute of the type and which default value is used. You
can specify the value in the Default Value column or leave the column blank. A user can overwrite the value
of a particular service order, appointment, or service schedule of the type.
• Where the attribute is placed in the list of attributes for the service order, appointment, or service schedule
of the service order type. In the Sort Order column, you enter the number representing the order of the
value in the resulting list of attribute values.
You can also control whether each attribute is active. You can deactivate an obsolete attribute for service orders,
appointments, and service schedules of a particular type by clearing the Active check boxfor it.. (By default, the
Active check box is selected for an attribute added to the Attributes tab.) A deactivated attribute will no longer be
displayed for the service orders, appointments, and service schedules of the type, but all attribute values that have
already been specified for existing service orders, appointments, and service schedules will still be stored in the
database. If you reactivate the attribute, its values (where specified) will become visible in the system again.
 Implementing Service Management | 401

However, if it is not necessary to preserve the data related to an obsolete attribute, you can deactivate the attribute
and then delete it by clicking the row with the attribute and then clicking the Delete Row on the table toolbar
of the Attributes tab. In this case, the attribute will be permanently deleted for the service order type, and all
attribute values of existing service orders, appointments, and service schedules of the type will be deleted from the
database.

Service Order Types for Inventory Sales

If you plan to offer the provision of inventory items as part of providing field services, you must define the
necessary settings related to the configuration of inventory management and sales order management. The topics
of this chapter explain how to configure service order types for service orders and appointments which will include
the sale of the inventory items.

Service Order Types for Inventory Sales: General Information

In Acumatica ERP, for service orders and appointments that may include inventory items, you need to define
service order types that have particular settings specified.

Learning Objectives
In this chapter, you will learn how to do the following:
In this lesson, you will learn how to do the following:
• Review the settings of the order types required for sales orders that are used in service management.
• Create a service order type intended to generate sales orders for service orders and appointments
associated with this type that may include both services and inventory items
• Create a service order type intended to generate SO invoices for service orders and appointments
associated with this type that may include both services and inventory items to be shipped

Applicable Scenarios
You configure service order types for inventory sales in the following cases:
• When you are initially configuring service management in Acumatica ERP. In this case, you create the
service order types that support your company's business processes (which may include sales of inventory
items). The use of service order types makes it easier for users to create and process service orders and their
appointments in the system.
• When you need to create a new service order type to support a new business process that involves your
company selling inventory items while providing services in appointments.

Service Order Types: Implementation Checklist

The following sections provide details you can use to ensure the proper configuration of each service order type
that will be used for service orders and appointments for which sales orders or SO invoices will be generated.
 Implementing Service Management | 402

Prerequisites
Before you create a service order type to be used for service orders and appointments for which sales orders or SO
invoices will be generated, you should make sure the minimum configuration of service management functionality
has been performed, as described in Basic Service Management Configuration: Implementation Activity .

Implementation Checklist
We recommend that before you start to create service order types, you make sure the needed features have been
enabled and settings have been specified, as summarized in the following checklist.

Form Criteria to Check

Enable/Disable Features (CS100000) form The following features have been enabled:
• Service Management.
• Inventory and Order Management: This feature
makes it possible to configure service order types
that are set up to generate sales orders for service
orders and appointments.
• Inventory
• Advanced SO Invoices

Numbering Sequences (CS201010) form At least one numbering sequence for service orders
has been created.

Credit Terms (CS206500) form At least one set of credit terms has been created.

Minimum Required Settings for a Service Order Type

For each service order type that you are going to use, you should specify the following minimum configuration
settings.

Form Settings to Specify

The Summary area of the Service Order Types • The identifier of the service order type
(FS202300) form • The description of the service order type

The General tab of the Service Order Types form • The Numbering Sequence to be used to assign ser-
vice order reference numbers to service orders of
the type
• The Behavior of the service order type
• The Sales Orders or SO Invoices option in the Gen-
erated Billing Documents box, which indicates
that a sales order (if shipping is involved) or SO in-
voice (no shipping involved) will be generated to
bill the customer for both services and inventory
items specified in service orders and appointments
of the service order type
• The needed option in the Default Terms for AR
and SO box
 Implementing Service Management | 403

Other Settings That Affect the Workflow

For a particular service order type, you can specify additional settings on the General tab of the Service Order
Types (FS202300) form that will affect the processing of service orders and appointments of this type:

• If the Complete Service Orders When Its Appointments Are Completed check box (General Settings
section) is selected, the system changes the status of a service order of the type to Completed when all
appointments of this service order have the Completed status. If this check box is cleared, a user has to
manually complete the service order.
• If the Close Service Orders When Its Appointments Are Closed check box (General Settings section) is
selected, the system changes the status of a service order of the type to Closed when all appointments of
this service order have the Closed status. If this check box is cleared, a user has to manually close the service
order.
• If the Require Contact check box (General Settings section) is selected, a user has to select a contact
person in the Contact box on the Settings tab of the Service Orders (FS300100) or Appointments (FS300200)
form when they create service orders or appointments of this service order type. If this check box is cleared,
the service orders and appointments of the type can be created without the contact person being specified.
• If the Require Customer Signature on Mobile App check box (General Settings section) is selected, before
a user completes an appointment of the type by using a mobile device, the customer's signature has to be
obtained and saved in the mobile app. If this check box is cleared, the user can complete an appointment of
the type without the customer's signature.
• If the Bill Only Closed Appointments check box (Billing Settings section) is selected, billing documents
can be generated only for closed appointments of the service order type. If this check box is cleared, billing
documents an be generated for appointments of the type that are not closed.

Service Order Types for Inventory Sales: To Review Sales Order Types

If your company plans to sell inventory items as part of providing field services, you must define the necessary sales
order types related to sales orders that are used in service management. If you specify the appropriate settings for
the sales order types, you will be able to generate sales orders of these types from service orders, appointments,
and service contracts, and to create service orders from these sales orders.
This activity will walk you through the process of reviewing the settings of the order types required for service
management purposes.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that SweetLife Service and Equipment Sales Center plans to sell inventory items along with the services
on the appointments. Acting as the administrative user of the company, you need to configure the system for
processing the sales of services and stock items, as well as for scheduling and processing appointments in
which services are performed and associated stock items may be sold. Specifically, you need to review the sales
order types to be used for sales orders related to service orders and appointments, to be sure their settings are
appropriate for sales orders to be used in service management.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
 Implementing Service Management | 404

• The minimum system configuration, which is described in Company with Branches that Do Not Require
Balancing: General Information, has been performed.
• The SWEETLIFE company has been created on the Companies (CS101500) form. This company has multiple
branches created on the Branches (CS102000) form, including SWEETEQUIP (Service and Equipment Sales
Center).
• On the Service Management Preferences (FS100100) form, the minimum settings have been specified,
including specifying the numbering sequences and work calendar, for the service management functionality
to be used.
• On the Enable/Disable Features (CS100000) form, the Inventory and Order Management and Inventory
features have been enabled.
• On the Order Types (SO201000) form, the predefined SO, IN and CM order types have been created and
defined to be used with the field services functionality. That is, the Enable Field Services Integration check
box has been selected in the Field Services Settings section on the General tab of the form.

Process Overview
From the Order Types (SO20100) form, you will review the sales order type settings to be sure that sales orders of
the type can be used for service management.

System Preparation
Before you start reviewing the order types, do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. You should
sign in as a system administrator with the gibbs username and the 123 password.
2. In the company to which you are signed in, be sure that you have enabled the Service Management feature
on the Enable/Disable Features (CS100000) form.
3. On the Company and Branch Selection menu on the top pane of the Acumatica ERP screen, select the
Service and Equipment Sales Center branch.

Step: Reviewing Order Types for Field Service Functionality

In this step, you will review SO, IN and CM order types to be sure that they are defined for use with the field service
functionality. Do the following:
1. On the Order Types (SO201000) form, open the SO order type. The documents of this type can later be
created on the Sales Orders (SO301000) form to record customer requests to purchase goods.
2. In the Field Services Settings section of the General tab, ensure that the Enable Field Services
Integration check box is selected.
3. In the Order Type box, select IN. Sales orders of this type can be created on the Sales Orders (SO301000)
form and used to bill a customer for delivered goods.
4. In the Field Services Settings section of the General tab, ensure that the Enable Field Services
Integration check box is selected.
5. In the Order Type box, select CM. Sales orders of this type can be created on the Sales Orders (SO301000)
form and used as adjustments to already-completed sales orders.
6. In the Field Services Settings section of the General tab, ensure that the Enable Field Services
Integration check box is selected.

You have reviewed the SO, IN and CM order types to be sure that their settings are appropriate for sales orders to be
used in field service processes.
 Implementing Service Management | 405

Service Order Types for Inventory Sales: To Create a Service Order Type with Sales
Orders Generated for Billing

In this implementation activity, you will learn how to create a service order type for service orders and
appointments for which sales orders will be generated as billing documents.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that the SweetLife Service and Equipment Sales Center provides juicer installation services to its
customers. Along with these services, the company sells stock items. Acting as an administrative user, you need
to create a service order type for service orders and appointments that include installation services and may also
include stock items; these service orders and appointments will be billed by using sales orders.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• The minimum system configuration, which is described in Company with Branches that Do Not Require
Balancing: General Information, has been performed.
• The SWEETLIFE company has been created on the Companies (CS101500) form. This company has multiple
branches created on the Branches (CS102000) form, including SWEETEQUIP (Service and Equipment Sales
Center).
• On the Service Management Preferences (FS100100) form, the minimum settings have been specified,
including specifying the numbering sequences and work calendar, for the service management functionality
to be used.
• On the Enable/Disable Features (CS100000) form, the Inventory and Order Management and Inventory
features have been enabled.
• On the Order Types (SO201000) form, the predefined SO, IN and CM order types have been modified to be
used with field services functionality. That is, the Enable Field Services Integration check box has been
selected in the Field Services Settings section on the General tab of the form.

Process Overview
In this activity, you will create a new service order type on the Service Order Types (FS202300) form and specify the
needed settings for sales orders to be generated for billing.

System Preparation
Before you start creating a service order type, do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. You should
sign in as a system administrator by using the gibbs username and the 123 password.
2. In the company to which you are signed in, be sure that you have enabled the Service Management feature
on the Enable/Disable Features (CS100000) form.
 Implementing Service Management | 406

3. On the Company and Branch Selection menu on the top pane of the Acumatica ERP screen, select the
Service and Equipment Sales Center branch.

Step: Creation of the Service Order Type

To create a new service order type for service orders and appointments for which sales orders will be generated as
billing documents, do the following:
1. On the Service Order Types (FS202300) form, add a new record.
2. In the Summary area, enter the following settings:
• Service Order Type: EQP
• Description: Equipment installation services
3. On the General tab, in the Numbering Sequence box, select FSSO.
4. In the Behavior box, make sure that Regular is selected.
5. In the Default Settings section, in the Take Address and Contact Information From box, make sure that
Business Account is selected.
6. In the Billing Settings section, select Sales Orders in the Generated Billing Documents box.
7. In the Order Type for Billing box, select IN.
8. In the Order Type for Negative Balance Billing box, select CM.
9. In the Order Type for Allocation box, ensure that SO is selected.
10.In the Default Terms for AR and SO box, select 30D - 30 Days.
11.Select the Bill Only Closed Appointments check box.
12.On the form toolbar, click Save.

Service Order Types for Inventory Sales: To Create a Service Order Type with SO
Invoices Generated for Billing

In this implementation activity, you will learn how to create a service order type for service orders and
appointments for which SO invoices will be generated as billing documents.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that the SweetLife Service and Equipment Sales Center provides the juicer maintenance and repair
services to its customers. Along with these services, the company also sells stock items. Acting as an administrative
user, you need to create a service order type for service orders and appointments that include services and may
also include stock items; these service orders and appointments will be billed by using SO invoices.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• The minimum system configuration, which is described in Company with Branches that Do Not Require
Balancing: General Information, has been performed.
 Implementing Service Management | 407

• The SWEETLIFE company has been created on the Companies (CS101500) form. This company has multiple
branches created on the Branches (CS102000) form, including SWEETEQUIP (Service and Equipment Sales
Center).
• On the Service Management Preferences (FS100100) form, the minimum settings have been specified,
including specifying the numbering sequences and work calendar, for the service management functionality
to be used.
• On the Enable/Disable Features (CS100000) form, the Inventory and Order Management and Inventory
features have been enabled.
• On the Order Types (SO201000) form, the predefined SO order type has been modified to be used with field
services functionality. That is, the Enable Field Services Integration check box has been selected in the
Field Services Settings section on the General tab of the form.

Process Overview
In this activity, on the Service Order Types (FS202300) form, you will create a service order type for service orders
and appointments that will be billed with SO invoices.

System Preparation
Before you start creating a service order type, do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. You should
sign in as system administrator by using the gibbs username and the 123 password.
2. In the company to which you are signed in, be sure that you have enabled the Service Management feature
on the Enable/Disable Features (CS100000) form.
3. On the Company and Branch Selection menu on the top pane of the Acumatica ERP screen, select the
Service and Equipment Sales Center branch.

Step: Creation of the Service Order Type

To create the new service order type for service orders and appointments for which SO invoices will be generated
as billing documents, do the following:
1. On the Service Order Types (FS202300) form, add a new record.
2. In the Summary area, enter the following settings:
• Service Order Type: REP
• Description: Repair, and Maintenance
3. On the General tab, in the Numbering Sequence box of the General Settings section, select FSSO.
4. In the Behavior box, make sure that Regular is selected.
5. In the Default Settings section, in the Take Address and Contact Information From box, make sure
Business Account is selected.
6. In the Billing Settings section, select SO Invoices in the Generated Billing Documents box.
7. In the Order Type for Allocation box, ensure that SO is selected.
8. In the Default Terms for AR and SO box, select 30D - 30 Days.
9. Select the Bill Only Closed Appointments check box.
10.On the form toolbar, click Save.
 Implementing Service Management | 408

Service Order Types: Quick Processing Settings

In Acumatica ERP, you can simplify the standard multistep processing of service orders and appointments by
configuring quick processing for a particular service order type. With just one click, a user can performing such
actions on the service orders and appointments of this type as the following: closing a service document, preparing
and releasing billing documents for a service document, and emailing the billing documents to the customer.

Quick processing can be configured for service order types that are defined to initially generate sales
orders or SO invoices from service orders or appointments—that is, the Sales Orders or SO Invoice
option is selected in the Generated Billing Documents box of the General tab (Billing Settings
section) of the Service Order Types (FS202300) form.

Configuration of Quick Processing for a Service Order Type

For quick processing to be used for service orders and appointments of a particular service order type, you must
allow quick processing for this service order type and specify the actions to be performed during quick processing.
To allow quick processing for the service order type, you select the Allow Quick Process check box on the General
tab ( Billing Settings section) of the Service Order Types (FS202300) form. This causes the Quick Processing tab to
appear on the form. On this tab, you specify the settings that determine how the system should process the service
orders and appointments of this type.
For each particular service order or appointment of the type being processed on the Service Orders (FS300100) or
Appointments (FS300200) form, the user can change the list of actions to be performed before initiating processing.

Service Order Types: To Configure Quick Processing for a Service Order Type

In this implementation activity, you will learn how to configure quick processing for a service order type.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Acting as an administrative user of the SweetLife Service and Equipment Sales Center, and you need to configure
quick processing for a service order type that has been created in the system. During the quick processing of a
service order or appointment of the service order type, the system has to perform the following actions:
• Run the billing for the service order or appointment being processed
• Complete and close the service order being processed
• Prepare and release the associated SO invoice, and send it by email to the customer

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• The minimum system configuration, which is described in Company with Branches that Do Not Require
Balancing: General Information, has been performed.
 Implementing Service Management | 409

• The SWEETLIFE company has been created on the Companies (CS101500) form. This company has multiple
branches created on the Branches (CS102000) form, including SWEETEQUIP (Service and Equipment Sales
Center).
• On the Service Management Preferences (FS100100) form, the minimum settings have been specified,
including specifying the numbering sequences and work calendar, for the service management functionality
to be used.
• On the Enable/Disable Features (CS100000) form, the Inventory and Order Management and Inventory
features have been enabled.

Process Overview
In this activity, to set up quick processing for a service order type that already exists in the system, you will modify
this service order type on the Service Order Types (FS202300) form and specify the needed settings on the Quick
Processing tab.

System Preparation
Before you start configuring quick processing for a service order type, do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. You should
sign in as a system administrator by using the gibbs username and the 123 password.
2. In the company to which you are signed in, be sure that you have enabled the Service Management feature
on the Enable/Disable Features (CS100000) form.
3. On the Company and Branch Selection menu on the top pane of the Acumatica ERP screen, select the
Service and Equipment Sales Center branch.

Step: Configuration of Quick Processing

To configure quick processing for a service order type, do the following:
1. On the Service Order Types (FS202300) form, open the CSLT service order type.
2. In the Billing Settings section of the General tab, select the Allow Quick Process check box.
3. On the Quick Processing tab, which appears on the form, do the following to specify the settings that
determine which actions the system will perform when a user is quickly processing a service order or
appointment of this type:
a. In the Appointment Actions section, make sure that the Run Billing check box is selected.
b. In the Service Order Actions section, do the following:
a. Select the Close check box.
b. Make sure that the Run Billing check box is selected.
c. In the Sales Order Actions section, do the following:
• Select the Prepare Invoice check box
• Select the Email Sale Order/Quote check box
4. On the form toolbar, click Save.

Service Classes

The topics of this chapter explain how to configure service classes to be used to group services with similar
properties, and to provide default settings for new services in Acumatica ERP.
 Implementing Service Management | 410

Service Classes: General Information

A service class in Acumatica ERP is an item class of the Service type. Service classes are used to group services with
similar properties and to provide default settings for new services.
When creating a service, on the Non-Stock Items (IN202000) form, you select an item class of the Service type. Based
on the settings of the item class, the system fills in default settings for the service, such as the posting class, tax
category, units of measure, and billing rules. Any of these default values can be overridden.

Learning Objectives
In this chapter, you will learn how to do the following:
• Create a service class
• Select a billing rule for a service class

Applicable Scenarios
You create a new service class in the system in the following cases:
• When you are initially configuring service management in the system, and need to create service classes to
group the services the company provides or plans to provide
• When your company plans to provide a new service or multiple services of the same type, and you need to
add them to the system under a new service class

Creation of Service Classes

On the Item Classes (IN201000) form, you create a service class by selecting Service as the item type on the General
tab. On this form, you specify the settings that you want to be applied to the services of the class, such as the tax
category, posting class, or price class.
You can view the list of service classes (and their default billing rules, which are described in the following section)
on the Service Classes (FS400900) form.

Selection of Billing Rules

In addition to specifying the general settings of the item class on the Item Classes (IN201000) form, you have to
select the default billing rule for services of the class on the Service Management tab. The billing rule determines
the method used to calculate the total prices for services provided to customers. You can select one of the following
options:
• Time: The service price is calculated based on the time that staff members spent delivering the service. The
unit price of the service is defined per unit of time, and to calculate the transaction amount, the system
multiplies the unit price by the quantity of units of time.
• Flat Rate: The service price is a fixed price for performing the service, regardless of the time that was spent
to perform the service.
• None: No service price is calculated, and the customer is not billed. (This option is used when the service is
provided to a customer for free or to your own company).
At least one service class should be defined in the system. When you create a service on the Non-Stock Items
(IN202000) form, the system inserts the billing rule specified for the selected service class. You can override the
default billing rule when you create the service or when you add the service to a service order or appointment on
the Service Orders (FS300100) or Appointments (FS300200) form, respectively.
 Implementing Service Management | 411

Service Classes: To Create a Service Class for Services with Fixed Prices

In this implementation activity, you will learn how to create a service class that is intended to group services for
which a flat rate is charged—that is, the services of the class will have fixed prices, regardless of the time that was
spent to perform a service.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that SweetLife Service and Equipment Sales Center has decided to provide business consulting services
related to juicing, such as developing recipes that are unique to customers' business or establishing a profitable
menu pricing system. Acting as an administrative user, you will create a new service class in the system, which will
group the consulting services with similar settings.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• The minimum system configuration is performed as described in Company Without Branches: General
Information.
• The minimum configuration of the service management functionality is performed as described in Basic
Service Management Configuration: Implementation Activity.
• On the Enable/Disable Features (CS100000) form, the following features have been enabled:
• Inventory and Order Management: Enables you to process sales and purchase orders that include non-
stock items of the Service type.
• Inventory: Enables you to process the sales and purchase orders that include non-stock items with
shipments and PO receipts.
• Multiple Units of Measure: Enables you to configure multiple units of measure.
• On the Posting Classes (IN206000) form, the NONSTOCK has been created.
• On the Units of Measure (CS203100) form, the ITEM, and HOUR units have been created.
• On the Tax Categories (TX205500) form, the definition of the necessary tax categories, which you will assign
to the new non-stock item.

Process Overview
On the Item Classes (IN201000) form, you will create a new service class.

System Preparation
Before you start creating a service class, do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded; you should
sign in as system administrator by using the gibbs username and the 123 password.
2. As a prerequisite activity, in the company to which you are signed in, be sure you have enabled the Service
Management feature on the Enable/Disable Features (CS100000) form.
 Implementing Service Management | 412

3. On the Company and Branch Selection menu, on the top pane of the Acumatica ERP screen, select the
Service and Equipment Sales Center branch.

Step: Creating a Service Class

To create a service class, do the following:
1. Open the Service Classes (FS400900) form.
2. On the form toolbar, click New Record.
The Enter Keys dialog box is opened.
3. In the dialog box, type CONSULTING as the Class ID value, and click Finish.
The dialog box closes, and the Item Classes (IN201000) form opens in a new window. In the Summary area,
the system has inserted the CONSULTING class ID.
4. In the Description box, enter Juice Business Consulting.
5. In the General Settings section of the General tab, do the following:
• Make sure the Stock Item check box is cleared.
• Make sure Service is selected in the Item Type box.
• In the Tax Category box, select EXEMPT.
• In the Posting Class, select NONSTOCK.
6. In the Unit of Measure section, select ITEM in the Base Unit, Sales Unit, and Purchase Unit boxes.
7. On the Service Management tab, in the Default Billing Rule box, select Flat Rate.
8. Save your changes and close the window with the item class.
9. On the Service Classes form, make sure that the service class is now displayed in the table.

You have created the new service class. When you create a new service on the Non-Stock Items(IN202000) form
and select this service class, the system will populate relevant elements of the service with the values you have
specified for the class.

Service Classes: To Create a Service Class for Services Billed by Time

In this implementation activity, you will learn how to create a service class intended to group services that are
billed by time.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that SweetLife Service and Equipment Sales Center has decided to sell a set of educational services
that will include teaching, coaching, and instructing. All these services are going to be billed by time. Acting as an
administrative user, you need to create a service class that will contain the general settings of this group of services.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
 Implementing Service Management | 413

• The minimum system configuration, which is described in Company with Branches that Do Not Require
Balancing: General Information, has been performed.
• The SWEETLIFE company has been created on the Companies (CS101500) form. This company has multiple
branches created on the Branches (CS102000) form, including SWEETEQUIP (Service and Equipment Sales
Center).
• On the Service Management Preferences (FS100100) form, the minimum settings have been specified,
including specifying the numbering sequences and work calendar, for the service management functionality
to be used.
• On the Enable/Disable Features (CS100000) form, the following features have been enabled:
• Inventory and Order Management: Makes it possible to process sales and purchase orders that include
non-stock items of the Service type.
• Inventory: Provides the ability to process sales and purchase orders that include non-stock items with
shipments and PO receipts.
• Multiple Units of Measure: Gives you the ability to defined multiple units of measure.
• On the Posting Classes (IN206000) form, the NONSTOCK posting class has been created.
• On the Units of Measure (CS203100) form, the HOUR unit has been created.
• On the Tax Categories (TX205500) form, the EXEMPT tax category has been created.

Process Overview
On the Item Classes (IN201000) form, you will create a service class that is used to group services that are billed by
the number of hours spent while providing a service.

System Preparation
Before you start creating a service class, do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. You should
sign in as a system administrator by using the gibbs username and the 123 password.
2. In the company to which you are signed in, be sure that you have enabled the Service Management feature
on the Enable/Disable Features (CS100000) form.
3. On the Company and Branch Selection menu on the top pane of the Acumatica ERP screen, select the
Service and Equipment Sales Center branch.

Step: Creating a Service Class

To create the needed service class, do the following:
1. Open the Service Classes (FS400900) form.
2. On the form toolbar, click New Record.
The Enter Keys dialog box is opened.
3. In the dialog box, type EDU as the Class ID value, and click Finish.
The Item Classes (IN201000) form opens in a new window. In the Summary area, the system has inserted the
EDU class ID.
4. In the Description box, enter Educational Services (Billed by Time).
5. In the General Settings section of the General tab, do the following:
• Make sure that the Stock Item check box is cleared. The system cleared this check box because you
created the item class from the Service Classes form.
 Implementing Service Management | 414

• Make sure Service is selected in the Item Type box. The system inserted this option because you created
the item class from the Service Classes form.
• In the Tax Category box, select EXEMPT.
• In the Posting Class, select NONSTOCK.
6. In the Unit of Measure section, select HOUR in the Base Unit, Sales Unit, and Purchase Unit boxes.
7. On the Service Management tab, in the Default Billing Rule box, leave Time selected.
8. Save your changes and close the window with the item class.
9. On the Service Classes form, make sure that the service class is now displayed in the table.

You have created the new service class. When you create a new service on the Non-Stock Items(IN202000) form
and select this service class, the system will populate relevant elements of the service with the values you have
specified for the class.

Billing Cycles

The topics of this chapter explain how to configure billing cycles to be assigned to each customer that can
potentially buy any services. The settings of a billing cycle determine how the services provided by the company
are going to be billed.

Billing Cycles: General Information

In Acumatica ERP, a billing cycle is an entity whose settings determine how the services provided by the company
are going to be billed. You create a billing cycle on the Billing Cycles (FS206000) form.
During the configuration of field services functionality, you create the needed billing cycles and then assign the
needed billing cycle to each customer that can potentially buy any services.

Learning Objectives
In this chapter, you will learn how to do the following:
In this lesson, you will learn how to do the following:
• Create a billing cycle
• Assign a billing cycle to a customer

Applicable Scenarios
You create a billing cycle or multiple billing cycles when you plan to provide services to your customers, and
want to be able to generate billing documents for the services that are provided, based on both the customer's
preferences and your company's business practices.

Billing Cycle Settings

You create billing cycles on the Billing Cycles (FS206000) form. For each billing cycle, in the Run Billing For section,
you select one of the following option buttons, which determine how billing documents will be generated for the
customer:
• Appointments (default): The customer will be billed based on what was done during each appointment.
We recommend that you select this option button when you bill the customer for the actual work time of the
appointments or when you bill the customer aer the appointments have occurred.
 Implementing Service Management | 415

• Service Orders: The customer will be billed based on service orders.

We recommend that you select this option button when you don't need an appointment to bill the included
service, or when you want to generate a billing document for the estimated price and hours.
Then in the Group Billing Documents By section, you select one of the following option buttons, which will
determine how the billing documents will be grouped in relation to appointments or service orders:
• Appointments: For each appointment billed, a single invoice will be generated.
• Service Orders: The generated invoices will be grouped by service order. If the services are billed by
appointments and grouped by service orders, one service order with multiple appointments will result in
one invoice being generated. If the services are billed by service orders and grouped by service orders, a
single invoice is generated for each service order.
• Customer Order: The generated invoices will be grouped by the customer's order number, which is
specified in the Customer Order box of the Summary area of the Service Orders (FS300100) form.
• External Reference: The generated invoices will be grouped by the purchase order provided by the
customer, which is specified in the External Reference box of the Summary area of the Service Orders
(FS300100) form.
• Time Frame (default): Invoices will be grouped on the day of each week or month that you specify
under Prepare On in the Time Frame Grouping Settings section of the form. If the services are billed
by appointments, for one customer, a single document is generated containing all of the appointments'
services performed up to the specified day.
On the Customers (AR303000) form, you must assign at least one billing cycle to each customer account to which
field services will be provided.

Billing Cycles: Examples

The system uses billing cycles, which are defined on the Billing Cycles (FS206000) form, to determine how
customers will be billed aer their service orders and appointments have been processed in the system. On the
Customers (AR303000) form, you assign one billing cycle or multiple billing cycles to a particular customer. (For
details on the ability to specify multiple billing cycles for a customer, see Billing Cycles: Assignment of Multiple Billing
Cycles.) A billing cycle can be assigned to any number of customers.

This topic presents examples with diagrams that show the different ways billing is performed depending on the
billing cycle's settings for the generation and grouping of billing documents. The diagrams are all based on the
same service orders and appointments. The last service order in the examples has no associated appointment.

Generating Billing Documents from Appointments; Grouping by Appointment

Suppose that you have defined a billing cycle with the following settings on the Billing Cycles (FS206000) form and
assigned it to a customer:
• Run Billing For: Appointments
• Group Billing Documents By: Appointment
The following diagram demonstrates how the customer is billed based on these settings. The system generates a
separate billing document for each appointment. The billing document contains the details of each service of the
appointment.
 Implementing Service Management | 416

Figure: Generation for appointments and grouping by appointment

In the diagram, you can see the details and key settings of the following: the service orders (in the first column), the
appointments (in the second column), and the generated billing documents (in the third column). Each yellow box
shows the grouping of the documents included in the generated billing documents.

Generating Billing Documents from Appointments; Grouping by Service Order

Suppose that you have defined a billing cycle with the following settings on the Billing Cycles form and assigned it
to a customer:
• Run Billing For: Appointments
• Group Billing Documents By: Service Order
The following diagram demonstrates how the customer is billed based on these settings. The system generates a
single billing document for all appointments of each service order. The billing document contains the details on
each service for each appointment.
 Implementing Service Management | 417

Figure: Generating billing documents for appointments; grouping by service order

In the diagram, you can see the details and key settings of the following: the service orders (in the first column), the
appointments (in the second column), and the generated billing documents (in the third column). Each yellow box
shows the grouping of the documents included in the generated billing documents.

Generating Billing Documents from Appointments; Grouping by Customer Order or External

Reference
Suppose that you have defined a billing cycle with the following settings on the Billing Cycles (FS206000) form and
assigned it to a customer:
• Run Billing For: Appointments
• Group Billing Documents By: Customer Order
The following diagram demonstrates how the customer is billed based on these settings. The system generates a
single document for the appointments of each customer order. When billing documents are grouped by customer
order or external reference, the system uses the number specified in the Customer Order or External Reference
box, respectively, of the Summary area of the Service Orders (FS300100) form.
 Implementing Service Management | 418

Figure: Generating billing documents for appointments; grouping by customer order or external reference

In the diagram, you can see the details and key settings of the following: the service orders (in the first column), the
appointments (in the second column), and the generated billing documents (in the third column). Each yellow box
shows the grouping of the documents included in the generated billing documents.

Generating Billing Documents from Appointments; Grouping by Time Frame

Suppose that you have defined a billing cycle with the following settings on the Billing Cyclesform and assigned it
to a customer:
• Run Billing For: Appointments
• Group Billing Documents By: Time Frame (on the 15th of every month)
The following diagram demonstrates how the customer is billed based on these settings. A single document is
generated for the appointment that took place before January 15, and another document is generated for the three
appointments that occurred before February 15.
 Implementing Service Management | 419

Figure: Generating billing documents for appointments; grouping by time frame (15th of each month)

In the diagram, you can see the details and key settings of the following: the service orders (in the first column), the
appointments (in the second column), and the generated billing documents (in the third column). Each yellow box
shows the grouping of the documents included in the generated billing documents.

Generating Billing Documents from Service Orders; Grouping by Service Order

Suppose that you have defined a billing cycle with the following settings and assigned it to a customer:
• Run Billing For: Service Orders
• Group Billing Documents By: Service Order
The following diagram demonstrates how the customer is billed based on these settings. The system generates
a single billing document for each service order, whether or not appointments are created and processed for the
service order.
 Implementing Service Management | 420

Figure: Generating billing documents for service orders; grouping by service order

In the diagram, you can see the details and key settings of the following: the service orders (in the first column), the
appointments (in the second column), and the generated billing documents (in the third column). Each yellow box
shows the grouping of the documents included in the generated billing documents.

Generating Billing Documents from Service Orders; Grouping by Customer Order or External
Reference
Suppose that you have defined a billing cycle with the following settings and assigned it to a customer:
• Run Billing For: Service Orders
• Group Billing Documents By: Customer Order
The following diagram demonstrates how the customer is billed based on these settings. The system generates a
single document for the service orders of each customer order, whether or not appointments have been created
and processed for these customer orders.
 Implementing Service Management | 421

Figure: Generation for service orders; grouping by customer order or external reference

In the diagram, you can see the details and key settings of the following: the service orders (in the first column), the
appointments (in the second column), and the generated billing documents (in the third column). Each yellow box
shows the grouping of the documents included in the generated billing documents.

Generating Billing Documents from Service Orders; Grouping by Time Frame

Suppose you have defined a billing cycle with the following settings and assigned it to a customer:
• Run Billing For: Service Orders
• Group Billing Documents By: Time Frame (on the 15th of every month)
The following diagram demonstrates how the customer is billed based on these settings.. The system generates
a single document for any service orders that have been created before the 15th of each month, whether or not
appointments have been created and processed for the service orders.
 Implementing Service Management | 422

Figure: Generation for service orders; grouping by time frame

In the diagram, you can see the details and key settings of the following: the service orders (in the first column), the
appointments (in the second column), and the generated billing documents (in the third column). Each yellow box
shows the grouping of the documents included in the generated billing documents.

Generating Billing Documents for Multiple Billing Cycles

Suppose that you provide service orders of different service order types to a customer. You provide the service
orders of the first type regularly, so you have decided to generate one billing document for all appointments of
these service orders that took place in a certain period of time. You provide the service orders of the second type
rarely to the customer, so you have decided that for each appointment of a service order of the second type, you
will generate one document right aer appointment completion.
You have defined billing cycles with the following settings and assigned them to the customer for the service order
types:
• Settings of the billing cycle for Service Order Type 1:
• Run Billing For: Appointments
• Group Billing Documents By: Time Frame (on the 15th of every month)
 Implementing Service Management | 423

• Settings of the billing cycle for Service Order Type 2:

• Run Billing For: Appointments
• Group Billing Documents By: Appointment
Based on the billing cycle settings, the system generates a separate billing document for each appointment for
service orders of Service Order Type 1. For each service order of Service Order Type 2, a separate billing document
is generated. The billing documents for service orders of Service Order Type 1 contain details on each service for
each appointment. In the billing documents for service orders of Service Order Type 2, details on each service for
each service order are included, whether or not appointments have been created and processed in the system.
The following diagram shows the details of the service orders of different service order types created for one
customer (in the first column). You can also see the details of the appointments (in the second column) and the
billing documents generated based on the settings of the billing cycles. Each yellow box shows the grouping of the
documents included in the generated invoices.
 Implementing Service Management | 424

Figure: Multiple billing cycles

Billing Cycles: To Create a Billing Cycle and Assign a Billing Cycle to a Customer

In this implementation activity, you will learn how to create a billing cycle in the system and assign a billing cycle to
the customer.
 Implementing Service Management | 425

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that SweetLife Service and Equipment Sales Center is starting to provide the service of cleaning the
juicers. The FRBUN - Cafe French Bun customer is going to order juicer cleaning periodically. The SweetLife Service
and Equipment Sales Center wants to bill the customer right aer each appointment is performed.
Acting as an administrative user Kimberly Gibbs, you will create a billing cycle that will cause a billing document
to be generated for each appointment; each billing document will contain the details of each service of the
appointment. Then you will assign the billing cycle to the customer.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• The minimum system configuration, which is described in Company with Branches that Do Not Require
Balancing: General Information, has been performed.
• The SWEETLIFE company has been created on the Companies (CS101500) form. This company has multiple
branches created on the Branches (CS102000) form, including SWEETEQUIP (Service and Equipment Sales
Center).
• On the Service Management Preferences (FS100100) form, the minimum settings have been specified,
including specifying the numbering sequences and work calendar, for the service management functionality
to be used.
• On the Customers (AR303000) form, the FRBUN - Cafe French Bun customer has been created.

Process Overview
On the Billing Cycles (FS206000) form, you will create a new billing cycle, APP2APP. Then on the Billing tab of the
Customers (AR303000) form, you will assign the billing cycle that you have created to the FRBUN - Cafe French Bun
customer.

System Preparation
Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded as a system
administrator with the gibbs username and the 123 password.

System Preparation
Before you start creating a billing cycle and assigning a billing cycle to the customer, do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. You should
sign in as a system administrator with the gibbs username and the 123 password.
2. In the company to which you are signed in, be sure that you have enabled the Service Management feature
on the Enable/Disable Features (CS100000) form.
3. On the Company and Branch Selection menuon the top pane of the Acumatica ERP screen, select the
Service and Equipment Sales Center branch.
 Implementing Service Management | 426

Step 1: Creating a Billing Cycle

To create the needed billing cycle, do the following:
1. On the Billing Cycles (FS206000) form, add a new record.
2. In the Billing Cycle ID box, enter APP2APP. This will serve as the identifier of this billing cycle in the system.
3. In the Description box, enter Billing by Appointments, Grouping by Appointments.
4. Under Run Billing For, leave Appointments selected.
5. Under Group Billing Documents By, select Appointments.
6. Leave the Bill Only Completed or Closed Service Orders check box cleared.
7. On the form toolbar, click Save.

You have created the billing cycle. Now it can be assigned to a customer to define how this customer is going to be
billed for the services.

Step 2: Assigning a Billing Cycle to a Customer

To assign a billing cycle to a customer, do the following:
1. On the Customers (AR303000) form, open the FRBUN - Cafe French Bun customer.
2. On the Billing tab, in the Service Management section, select APP2APP in the Billing Cycle box.
3. On the form toolbar, click Save.

Billing Cycles: Assignment of Multiple Billing Cycles

In Acumatica ERP, you can specify either one billing cycle or multiple billing cycles for a customer. You specify one
billing cycle for a customer if you want to generate billing documents in the same way and with the same details for
all types of service orders. You specify multiple billing cycles for a customer account if you want to apply different
invoicing or grouping settings depending on the type of the service order.
In this topic, you will read how to set up multiple billing cycles for a customer account.

Setting Up the Ability to Use Multiple Billing Cycles

To set up multiple billing cycles for particular customers during the configuration of the field service functionality,
you perform the following general steps:
1. Select the Manage Multiple Billing Options per Customer check box on the General tab on the Service
Management Preferences (FS100100) form.
2. Create all needed billing cycles on the Billing Cycles (FS206000) form. For examples of billing cycles, see
Billing Cycles: Examples.
3. For each customer, add all needed service order types and associate a billing cycle with each service order
type on the Service Billing tab on the Customers (AR303000) form.

You should add a row for each type for which you may define service orders for this customer
and select a billing cycle for each type.

4. Optional: On the Customer Classes (AR201000) form, you can create a new customer class, add service order
types and associate a billing cycle with each service order type on the Service Billing tab of the form.
 Implementing Service Management | 427

When you create a new customer in the system, you can select the customer class, so that the new customer
will be assigned with the settings of the customer class including the billing cycles specified for the
customer class.

Specifying Multiple Billing Cycles for a Customer

If you have used one billing cycle for each of your customers, you might later decide to turn on the ability to use
different billing cycles for different service order types for select customers. To do so, you first select the Manage
Multiple Billing Options per Customer check box on the Service Management Preferences (FS100100) form.
On the Customers (AR303000) form, you need to change the billing settings for each customer for which you want to
specify multiple billing cycles. you select a customer whose settings you want to change. Before the functionality
for multiple billing cycles was turned on, in the Service Management section of the Billing tab, a single billing
cycle was specified, along with the sources of the bill-to and ship-to addresses for field services.
With the functionality for multiple billing options turned on, the Service Billing tab is displayed on the form. Notice
that the system has added a row for each service order type for which the customer has service orders. For each
type, the system inserts the billing settings (billing cycle, bill-to address, and ship-to address) that were specified
for this customer when the functionality for multiple billing cycles was turned off.
For each service order type, you can change the billing cycle and other settings. You can also add other service
order types for the customer and specify their default billing settings.

Skills

The topics of this chapter explain how to configure the skills. A skill in Acumatica ERP is a characteristic that can
be assigned to an employee that helps a service manager to select the right staff member to perform a particular
service.

Skills: General Information

Acumatica ERP offers multiple capabilities to help you ensure that the right staff member of your company
performs each service. That is, if the staff member needs to have special skills or knowledge to perform a particular
service, the system automatically suggests to you the list of staff members with the specific skills required for your
service.
A skill is a characteristic that can be assigned to an employee and that can be used as an employee requirement
to perform a service. Unlike licenses, skills don't have issue dates and expiration dates, and they are not issued by
agencies.
In this topic, you will learn how to create skills in the system and then assign them to staff members and to services.

Learning Objectives
In this chapter, you will learn how to do the following:
• Create a skill
• Assign a skill to a staff member
• Assign a skill to a service
 Implementing Service Management | 428

Applicable Scenarios
You create skill records in the system when you need to have an ability to filter staff members for appointments
according to their skills.

Assignment of Skills to a Staff Member

Before you start creating a list of all the skills to be used for services by your company, you should gather
information about the skills that are required for all of the services your company is going to perform. You then
create the list of all required skills for performing services on the Skills (FS200600) form.
When the list of all skills that may be needed for performing services is defined, you need to assign the needed
skills to appropriate staff members and to particular services. You assign skills to a particular staff member on the
Skills tab of the Employees (EP203000) form.

Assignment of Skills to a Service

On the Non-Stock Items (IN202000) form, you specify the skills that are required to perform the selected service—
that is, assign the skills to the service. To do this, you select the service (which is a non-stock item of the Service
type), and on the Service Skills tab, you add a row for each skill needed for the service.
Once you assign skills to a service, Acumatica ERP can check whether the staff member assigned to fulfill this
service also has the assigned skills.
To define what validation (if any) the system should use to determine whether the service's skills match the
assigned employee's skills, on the Service Management Preferences (FS100100) form, in the Skills box of the
General tab (Appointment Validation Settings section), you can select one of the following options :
• Do Not Validate (default): The system does not perform validation (that is, it does not check whether the
service's skills match the assigned employee's skills).
• Warn: If the staff member does not have the skills specified for the service, the system displays a warning
message about the staff member not having the necessary skill or skills.
• Prevent: If the staff member does not have the skills specified for the service, the system prevents the
assignment of this staff member.

Skills: To Create a Skill

In this implementation activity, you will learn how to create a skill.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that the SweetLife Service and Equipment Sales Center provides multiple services. Each service requires
the staff members to have certain skills, and the manager should assign a qualified person to each service. Acting
as an administrative user, you will create the skills that are needed for the provided services. As a result, the
scheduler will be able to assign appointments to the staff members whose skills match the included service or
services.
 Implementing Service Management | 429

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• The minimum system configuration is performed as described in Company Without Branches: General
Information.
• The minimum configuration of the service management functionality is performed as described in Basic
Service Management Configuration: Implementation Activity.

Process Overview
On the Skills (FS200600), you will add skill records to the system.

System Preparation
Before you start creating skills, do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded; you should
sign in as system administrator by using the gibbs username and the 123 password.
2. As a prerequisite activity, in the company to which you are signed in, be sure you have enabled the Service
Management feature on the Enable/Disable Features (CS100000) form.
3. On the Company and Branch Selection menu, on the top pane of the Acumatica ERP screen, select the
Service and Equipment Sales Center branch.

Step: Creating Skills

To create a skill, do the following:
1. Open the Skills (FS200600) form.
2. On the table toolbar, click Add Row.
3. In the Skill ID column of the row that was added, enter the identifier of the skill: COOKING.
4. In the Description column, enter Cooking skill.
5. On the form toolbar, click Save.
6. As you did in Instructions 2–5, create a skill with the following settings, and save your changes:
• Skill ID: TRANSLATING
• Description: ENG > ES translator

Skills: To Assign a Skill to a Service

In this implementation activity, you will learn how to assign skills to a service.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.
 Implementing Service Management | 430

Story
Suppose that the SweetLife Service and Equipment Sales Center has started to provide a cleaning service, which
is billed by hours. The staff member who conducts this type of service must have strong skills related to using and
cleaning the juicers, so the manager has to be able to assign the right person to provide the service. Acting as an
administrative user, you will assign the cleaning skill to the cleaning service. As a result, the scheduler can assign
staff members whose skills match the service or services included in the appointment.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• The minimum system configuration is performed as described in Company Without Branches: General
Information.
• The minimum configuration of the service management functionality is performed as described in Basic
Service Management Configuration: Implementation Activity.
• On the Services (FS400800) form, the CLEANING service has been created.
• On the Skills (FS200600) form, the CLEANING skill has been created.

Process Overview
On the Services (FS400800) form, you click the service name link, and the system opens the Non-Stock Items
(IN202000) form, which displays the non-stock item of the Service type. On this form, you assign the skill to the
service.

System Preparation
Before you start assigning a skill to a service, do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded; you should
sign in as system administrator by using the gibbs username and the 123 password.
2. As a prerequisite activity, in the company to which you are signed in, be sure you have enabled the Service
Management feature on the Enable/Disable Features (CS100000) form.
3. On the Company and Branch Selection menu, on the top pane of the Acumatica ERP screen, select the
Service and Equipment Sales Center branch.

Step: Assigning a Skill to a Service

To assign a skill to a service, do the following:
1. On the Services (FS400800) form, click CLEANING in the Inventory ID column.
This opens the Non-Stock Items (IN202000) form, which displays the CLEANING non-stock item of the Service
type.
2. On the table toolbar of the Service Skills tab, click Add Row.
3. In the Skill ID column of the new row, select CLEANING - Juicer cleaning skills.
4. On the form toolbar, click Save.

Now the CLEANING - Juicer cleaning skills skill is assigned to the CLEANING service.
When you attempt to assign staff members to this service, the validation (described in Skills: General Information) is
performed, and the system suggests the employees who have the skill to deliver this service.
 Implementing Service Management | 431

Skills: To Assign a Skill to a Staff Member

In the following implementation activity, you will learn how to assign a skill or skill to employees.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that SweetLife Service and Equipment Sales Center provides multiple services, so that assigning staff
to appointments becomes more complex. The services require the staff members to have certain skills, and the
manager wants to assign the right person for each service. Acting as an administrative user, you will add certain
skills to staff members. As a result, the scheduler will be able to assign appointments to the staff members whose
skills match the skills of the included service or services.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• The minimum system configuration is performed as described in Company Without Branches: General
Information.
• The minimum configuration of the service management functionality is performed as described in Basic
Service Management Configuration: Implementation Activity.
• On the Employees (EP203000) form, the EP00000042 - Chase Frank, EP00000044 - Ricardo Martinez and
EP00000045 - Luke Cole employees have been created, and have been defined as a service management staff
members, that is the Staff Member in Service Management check box has been selected on the General
Info tab for each employee.
• On the Skills (FS200600) form, the TRAINING, REPAIRING and DRIVING skills have been created.

Process Overview
On the Employees (EP203000) form, you will select an employee, and on the Skills tab of the form, you will add a
skill to each selected employee.

System Preparation
Before you start assigning skills to employees, do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded; you should
sign in as system administrator by using the gibbs username and the 123 password.
2. As a prerequisite activity, in the company to which you are signed in, be sure you have enabled the Service
Management feature on the Enable/Disable Features (CS100000) form.
3. On the Company and Branch Selection menu, on the top pane of the Acumatica ERP screen, select the
Service and Equipment Sales Center branch.

Step: Assigning a Skill to a Staff Member

You can assign skills to staff members of the Employee type. To assign a skill to a staff member, do the following:
 Implementing Service Management | 432

1. Open the Employees (EP203000) form.

2. In the Employee ID box of the Summary area, select EP00000042 - Chase Frank.
3. On the table toolbar of the Skills tab, click Add Row, and in the new row, select TRAINING.
4. On the form toolbar, click Save.
5. Repeat Instructions 2—4 to select each of the following employees and assign the noted skills to them:
• EP00000044 - Ricardo Martinez: REPAIRING
• EP00000045 - Luke Cole: DRIVING

Licenses

The topics of this chapter explain how to enter the licenses in Acumatica ERP. A license is an official document
proving that a person has permission to perform work of a certain kind. A service manager can then select the right
staff member to perform a service for which special knowledge is needed.

Licenses: General Information

A license is a document proving that a particular person has permission to perform work of a certain kind or has
knowledge in a particular area. To track licenses in the system, you first create license types, which are categories
of licenses that are used for grouping licenses and associating a group of licenses with a service. You then enter all
licenses (and assign license types to them when you enter them) and specify the staff members or branches of your
company (or both) to which each license belongs. You can then easily select the right staff member to perform a
service for which a license of a particular type is needed.
In this topic, you will read about how license types and licenses are created in the system and assigned to staff
members.

Learning Objectives
In this chapter, you will learn how to do the following:
In this lesson, you will learn how to do the following:
• Create a license type
• Assign a license type to a service
• Add a license
• Assign license information to an employee

Applicable Scenarios
You create licenses in Acumatica ERP when your company provides services that require specific skills that are
proven by licenses or certificates. With licenses tracked in the system, you can assign staff members with the
needed licenses to appointments.

License Application
Before you create the license types, you should gather information about which license types are required for the
services that your company is going to perform. Once you have created the license types, you specify a license type
for each license of a staff member that you enter into the system. One license is owned by only one staff member,
although any staff member can have multiple licenses. You can then assign the needed license types to services.
 Implementing Service Management | 433

With this configuration performed, when you select a staff member to perform a particular service of a service order
or appointment by using the Add Staff dialog box on the Service Orders (FS300100) or Appointments (FS300200)
form, the system automatically suggests to you staff members that have licenses of the type that is required to
provide the service. When you schedule appointments by using calendar boards, you can filter the staff members
by the types of the licenses that are needed for services.
When you save a newly created license, the system assigns it a reference number based on the numbering
sequence specified for licenses in the License Numbering Sequence box on the Service Management Preferences
(FS100100) form.

License Validation
By assigning license types to services, you optimize the staff selection process. For an appointment, the system
suggests only those staff members who own the required license. You can set up validation so that the system will
determine whether the license type specified for a service matches the assigned employee's licenses.
For this validation, in the License box of the General tab (Appointment Validation Settings section) of the Service
Management Preferences (FS100100) form, you can select one of the following options:

• Do Not Validate (default): The system does not perform license validation.
• Warn: If the validation is not passed, the system displays a warning message notifying you that the staff
member does not have the required active licenses.
• Prevent: If the validation is not passed, the system prevents the assignment of the staff member who does
not have the required active license or licenses.

License: To Create a License Type and Assign It to a Service

In this implementation activity, you will learn how to add a license type to the system and then assign the license
type to a service.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that the SweetLife Service and Equipment Sales Center wants to keep track of the licenses its employees
have. This will give service managers the ability to assign the right employee to each appointment, because for
some services, a license can be a requirement for performing this service. Before adding license information to the
system, you need to create the appropriate license types based on which the licenses will be added for individual
users.
Acting as an administrative user, you will create a license type and then assign this license type to a service to
represent which license is required for a staff member who can perform this service.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• The minimum system configuration, which is described in Company with Branches that Do Not Require
Balancing: General Information, has been performed.
• The SWEETLIFE company has been created on the Companies (CS101500) form. This company has multiple
branches created on the Branches (CS102000) form, including SWEETEQUIP (Service and Equipment Sales
Center).
 Implementing Service Management | 434

• On the Service Management Preferences (FS100100) form, the minimum settings have been specified,
including specifying the numbering sequences and work calendar, for the service management functionality
to be used.
• On the Services (FS400800) form, the DELIVERY service has been created.

Process Overview
On the License Types (FS200900) form, you will add a new type for a license that is required for performing the
delivery service. Then on the Non-Stock Items (IN202000) form, which you will open from the Services (FS400800)
form, you will assign the newly created license type to the DELIVERY non-stock item of the Service type.

System Preparation
Before you start creating a license type, do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. You should
sign in as system administrator by using the gibbs username and the 123 password.
2. In the company to which you are signed in, be sure that you have enabled the Service Management feature
on the Enable/Disable Features (CS100000) form.
3. On the Company and Branch Selection menu, on the top pane of the Acumatica ERP screen, select the
Service and Equipment Sales Center branch.

Step 1: Creating a License Type

To create a license type, do the following:
1. Open the License Types (FS200900) form.
2. On the table toolbar, click Add Row.
3. In the new row, enter the following settings:
• License Type ID: FOOD DELIVERY.
• Description: Safety food delivery training
4. On the form toolbar, click Save.

Now that you have added a license type to the system, you will assign this license type to a service that requires the
person who performs the service to have a license of this type.

Step 2: Assigning a License Type to a Service

To assign a license type to a service, do the following:
1. On the Services (FS400800) form, click DELIVERY in the Inventory ID column.
This opens the Non-Stock Items (IN202000) form with the DELIVERY non-stock item of the Service type
selected.
2. On the Service License Types tab, add a row.
3. In the License Type ID column, select FOOD DELIVERY.
4. On the form toolbar, click Save & Close.

You have defined the license type whose license is required for performing the delivery service. Now you can
proceed to adding license information to the system.
 Implementing Service Management | 435

License: To Create a License and Assign It to a Staff Member

Each license is associated with a specific employee. In this implementation activity, you will learn how to create a
license record in the system and specify the staff member who owns the license in the record's settings.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that SweetLife Service and Equipment Sales Center tracks the licenses its employees have. The company
also provides services that can be performed only by staff members with licenses. In Acumatica ERP, each license
and its settings should be entered, including the employee who owns this license.
Acting as an administrative user, you will create a license record in the system, and assign it to an employee who
has the license.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• The minimum system configuration, which is described in Company with Branches that Do Not Require
Balancing: General Information, has been performed.
• The SWEETLIFE company has been created on the Companies (CS101500) form. This company has multiple
branches created on the Branches (CS102000) form, including SWEETEQUIP (Service and Equipment Sales
Center).
• On the Service Management Preferences (FS100100) form, the minimum settings have been specified,
including specifying the numbering sequences and work calendar, for the service management functionality
to be used.
• On the Services (FS400800) form, the DELIVERY service has been created.
• On the Employees (EP203000) form, the EP00000045 (Luke Cole) employee has been created, and has been
defined as a service management staff member. That is, the Staff Member in Service Management check
box has been selected on the General Info tab for the employee.

Process Overview
On the Licenses (FS201000) form, you will add license settings, including the staff member who has the license.
Then on the Employees (EP203000) form, you will confirm that the license has been defined for the employee.

System Preparation
Make sure that you have performed the License: To Create a License Type and Assign It to a Service prerequisite
activity.

System Preparation
Before you start creating a license, do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. You should
sign in as a system administrator by using the gibbs username and the 123 password.
 Implementing Service Management | 436

2. In the company to which you are signed in, be sure that you have enabled the Service Management feature
on the Enable/Disable Features (CS100000) form.
3. On the Company and Branch Selection menu on the top pane of the Acumatica ERP screen, select the
Service and Equipment Sales Center branch.
4. Make sure that you have performed the License: To Create a License Type and Assign It to a Service
prerequisite activity.

Step: Creating a License

To create a license, do the following:
1. On the Licenses (FS201000) form, add a new record.
2. In the Summary area, specify the following settings:
• License Type: FOOD DELIVERY
• Staff Member: EP00000045 (Luke Cole)
• Issue Date: 01/01/2020
• Expiration Date: 01/01/2030
3. On the form toolbar, click Save.
4. In the Licenses (FS4020PL) list of records, make sure that the license you have created is displayed.
5. Open the Employees (EP203000) form.
6. In the Employee ID box, select EP00000045 (Luke Cole).
7. On the Licenses tab, confirm that you see the license that you added for the employee.
On this tab, you can also add licenses for the employee.

Services

In Acumatica ERP, you need to define non-stock items to represent the services that your company provides to
customers. You then specify these services when you enter customers' service orders and process appointments.
This chapter describes services and their relationship to service classes, as well as the process of adding service-
related information to the system.

Services: General Information

In Acumatica ERP, a service is a non-stock item of the Service type representing a particular type of work provided
by the company. The settings of a service can include its estimated duration, the skills and license types required
for employees to provide the service, and the equipment needed to deliver this service.
You can enter, store, and manage information about the services your company provides to customers. This
information can help your employees to select the right staff member to perform services.

Learning Objectives
In this chapter, you will learn how to create a new service in Acumatica ERP.
 Implementing Service Management | 437

Applicable Scenarios
You create services in the system in the following cases:
• You are initially configuring the system according to your company's needs, and need to define the services
that your company provides to its customers.
• You need to add a new service to the already configured and functioning system.

Creation of Services
Services are defined in the system as non-stock items created on the Non-Stock Items (IN202000) form with Service
selected as the type on the General tab.
Before you create services, you need to create service classes—that is, item classes created on the Item Classes
(IN201000) form with the Service item type—as described in Service Classes. When you select an item class on the
General tab of the Non-Stock Items form, the system automatically populates the item settings with the Service
type and other settings based on the settings you have specified for the item class. You also specify the estimated
duration of service execution, the default billing rule (if it is different than the one specified for the class), and the
posting class and tax category, if they were not specified for the selected service class or if you want to override the
class settings. Optionally, you can specify price information, skills, license types, and resource equipment types.
On the Services (FS400800) form, you can view the list of services along with their key settings, including the service
class, estimated duration, and default billing rule.

Skills and License Types

If a service requires special skills or knowledge, aer the service has been created in the system, you can assign any
necessary skills and license types to the service. The system will then give you the ability to select the right person
to perform a service once you assign a staff member to an appointment.
Before you start adding services to the system, we recommend that you make sure that the required skills and
license types have been entered into the system on the Skills (FS200600) and License Types (FS200900) forms. If the
required skills and license types are defined in the system, you assign skills on the Service Skills tab of the Non-
Stock Items (IN201000) form and license types on the Service License Types tab of this form. For details, see Skills
and Licenses.

Resource Equipment Types

If special equipment must be used to perform the services you are entering, we recommend that you make sure
that all necessary equipment types have been created on the Equipment Types (FS200800) form. You can then
assign these types to the appropriate services on the Resource Equipment Types tab of the Non-Stock Items
(IN201000) form. For details, see Creating and Using Resource Equipment.

Services: To Create a Service with a Fixed Price

In this implementation activity, you will learn how to create a service that has the fixed price regardless of the time
spent while providing the service. You will still specify the typical duration of the service; this estimation will be
helping the service manager in planning the workload in the future.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.
 Implementing Service Management | 438

Story
Suppose that SweetLife Service and Equipment Sales Center has hired a chef who has worked at some of the finest
dining restaurants, and the company recruited him to work as a full-time consultant to develop recipes unique to
each particular business. Thus, SweetLife has decided to provide a recipe development service, which will have a
fixed price. Acting as an administrative user, you will create the service in the system.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• The minimum system configuration is performed as described in Company Without Branches: General
Information.
• The minimum configuration of the service management functionality is performed as described in Basic
Service Management Configuration: Implementation Activity.
• On the Enable/Disable Features (CS100000) form, the following features have been enabled:
• Inventory and Order Management: Enables you to process sales and purchase orders that include non-
stock items of the Service type.
• Multiple Units of Measure: Enables you to configure multiple units of measure.
• On the Posting Classes (IN206000) form, the NONSTOCK has been created.

While the U100 dataset you are going to use to configure a non-stock item of the Service type
has predefined posting classes, in a production environment you can configure a non-stock
item without posting classes.

• On the Units of Measure (CS203100) form, the ITEM unit has been created.
• On the Tax Categories (TX205500) form, the EXEMPT tax category has been created.
• On the Item Classes (IN201000) form, the TRAINING service class, that is an item class with the Service item
type has been created.

Process Overview
By using the Services (FS400800) form as a starting point, you will add a new record. The system will open the Non-
Stock Items (IN202000) form, on which you will specify the settings of the new service. Then you will confirm that
the service has been added to the list on the Services (FS400800) form.

System Preparation
Before you start creating a service, do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded; you should
sign in as system administrator by using the gibbs username and the 123 password.
2. As a prerequisite activity, in the company to which you are signed in, be sure you have enabled the Service
Management feature on the Enable/Disable Features (CS100000) form.
3. On the Company and Branch Selection menu, on the top pane of the Acumatica ERP screen, select the
Service and Equipment Sales Center branch.

Step: Creating a Service with a Fixed Price

To create the fixed-price recipe development service, do the following:
1. Open the Services (FS400800) form.
 Implementing Service Management | 439

2. On the form toolbar, click New Record.

3. In the Enter Keys dialog box, which opens, type RECIPE DEV as the Inventory ID value, and click Finish.
The dialog box is closed, and the Non-Stock Items (IN202000) form is opened in a new window. In the
Summary area, the system has inserted the RECIPE DEV inventory ID.
4. In the Description box, enter Developing unique recipes.
5. In the Item Defaults section of the General tab, in the Item Class box, select COACHING.
Aer you select the service class, the billing rule on the Price/Cost tab and the units of measure on the
General tab are filled in automatically with the settings of the service class. The posting class and tax
category are also automatically assigned to the service.
6. In the Estimated Duration box (the Field Service Defaults section), type 2 h 00 m.
7. In the Units of Measure section, make sure that ITEM is selected in the Base Unit, Sales Unit, and Purchase
Unit boxes.
8. On the Price/Cost tab, do the following:
• In the Default Price box, type 200.00.
• In the Billing Rule box, make sure that Flat Rate is selected.
9. Save your changes, and close the window with the item.
10.On the Services (FS400800) form, verify that the RECIPE DEV service has appeared in the list of services.

Services: To Create a Service Billed by Time

In this implementation activity, you will learn how to create a service billed by time.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that SweetLife Service and Equipment Sales Center has decided to sell a set of educational services
that are going to be billed by time. These services will include teaching, coaching, and instructing. Acting as an
administrative user, you will create the Training course service and specify its typical duration and price per hour.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• The minimum system configuration, which is described in Company with Branches that Do Not Require
Balancing: General Information, has been performed.
• The SWEETLIFE company has been created on the Companies (CS101500) form. This company has multiple
branches created on the Branches (CS102000) form, including SWEETEQUIP (Service and Equipment Sales
Center).
• On the Service Management Preferences (FS100100) form, the minimum settings have been specified,
including specifying the numbering sequences and work calendar, for the service management functionality
to be used.
• On the Enable/Disable Features (CS100000) form, the following features have been enabled:
• Inventory and Order Management: Provides the ability to process sales and purchase orders that include
non-stock items of the Service type.
 Implementing Service Management | 440

• Multiple Units of Measure: Gives you the ability to define multiple units of measure.
• On the Posting Classes (IN206000) form, the NONSTOCK posting class has been created.
• On the Units of Measure (CS203100) form, the ITEM unit has been created.
• On the Tax Categories (TX205500) form, the EXEMPT tax category has been created.
• On the Item Classes (IN201000) form, the TRAINING service class (that is, an item class with the Service item
type) has been created.

Process Overview
By using the Services (FS400800) form as a starting point, you will add a new record. The system will open the Non-
Stock Items (IN202000) form, on which you will specify the settings of the new Training course service. Then you will
confirm that the service has been added to the list on the Services (FS400800) form.

System Preparation
Before you start creating a service, do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. You should
sign in as a system administrator by using the gibbs username and the 123 password.
2. In the company to which you are signed in, be sure that you have enabled the Service Management feature
on the Enable/Disable Features (CS100000) form.
3. On the Company and Branch Selection menu on the top pane of the Acumatica ERP screen, select the
Service and Equipment Sales Center branch.

Step: Creating a Service Billed by Time

To create a service that is billed by time, do the following:
1. Open the Services (FS400800) form.
2. On the form toolbar, click New Record.
3. In the Enter Keys dialog box, which opens, type TRAINING CRS as the Inventory ID value, and click Finish.
The dialog box closes, and the Non-Stock Items (IN202000) form opens in a new window. In the Summary
area, the system has inserted the TRAINING CRS inventory ID.
4. In the Description box, enter Courses on Juicer Usage: Theory and Practice.
5. In the Item Defaults section of the General tab, in the Item Class box, select TRAINING.
Aer you select the service class, the billing rule on the Price/Cost tab and the units of measure on the
General tab are filled in automatically with the settings of the service class. The posting class and tax
category are also automatically assigned to the service.
6. In the Estimated Duration box (Field Service Defaults section), type 3 h 00 m.
7. In the Units of Measure section, make sure that HOUR is selected in the Base Unit, Sales Unit, and
Purchase Unit boxes.
8. On the Price/Cost tab, do the following:
• In the Default Price box, type 70.00.
• In the Billing Rule box, make sure that Time is selected.
9. Save your changes, and close the window with the Non-Stock Items form.
10.On the Services form, verify that the TRAINING CRS service has appeared in the list of services.
 Implementing Service Management | 441

Service Areas

The topics of this chapter explain how to configure service areas. A service area in Acumatica ERP is a region that
represents the territory where the company's services can be delivered.

Service Areas: General Information

A service area is a region that is defined by a set of postal codes and represents the territory where the company's
services can be delivered. By maintaining service areas, you can assign certain areas to certain employees, so that
you can control which employees serve a given territory and which areas a given staff member can serve.
In this topic, you will read about how to add service areas, and how to assign the appropriate service area to a staff
member.

Learning Objectives
In this chapter, you will learn how to do the following:
• Create service areas
• Assign a service area to a staff member

Applicable Scenarios
You create service areas in the system when the territory where your company delivers services is large. Service
areas give you the ability to quickly sort staff members by geographical area and assign an appropriate employee
for performing services.

Creation of a Service Area

You add a new service area by using the Service Areas (FS201900) form. On this form, you enter the service area
identifier and its description; then on the Postal Codes tab, you specify the ZIP codes that belong to the service
area. To simplify the entry of many zip codes, we recommend that you prepare an Excel file with the list of postal
codes, and then upload records from the file.
Aer you save the information you have entered, you can assign the service areas to the appropriate staff members.

Assignment of a Service Area to a Staff Member

You assign service areas to staff members on one of the following forms:
• On the Service Areas (FS201900) form, you can assign a particular service area to multiple staff members.
• On the Employees (EP203000) form, you can assign any number of service areas to a particular staff
member.

You can assign service areas to staff members of the Employee type only. For details on staff member
types, see Staff Members: General Information.

Once you have assigned service areas to staff members, you can select a staff member for performing services by
geographical area.
 Implementing Service Management | 442

Service Areas: To Add a Service Area and Assign a Staff Member to It

A service area in the system represents the geographical areas where your company can provide services for
customers. The coverage area of each service area is determined by the postal codes specified for the service area.
In this implementation activity, you will learn how to add a service area to the system.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that you are an administrative user of the SweetLife Service and Equipment Sales Center, and you are
adding to the system a new service area where the company plans to provide services for customers.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• The minimum system configuration, which is described in Company with Branches that Do Not Require
Balancing: General Information, has been performed.
• The SWEETLIFE company has been created on the Companies (CS101500) form. This company has multiple
branches created on the Branches (CS102000) form, including SWEETEQUIP (Service and Equipment Sales
Center).
• On the Service Management Preferences (FS100100) form, the minimum settings have been specified,
including specifying the numbering sequences and work calendar, for the service management functionality
to be used.
• On the Employees (EP203000) form, the EP00000043 (Edward Smith) and EP00000044 - Ricardo Martinez
employees have been created and have been defined as a service management staff members. That is,
the Staff Member in Service Management check box has been selected on the General Info tab for each
employee.

Process Overview
On the Service Areas (FS201900) form, you will create a new service area record; on the Postal Codes tab, you will
add the list of postal codes related to the service area. Then on the Employees tab of this form, you will add the
staff members who can perform services in the service area.

System Preparation
In this activity, you will use the GeoZones_JAMAICA file provided with your training materials, which includes the
list of postal codes.

System Preparation
Before you start creating a service area and assigning it to a staff member, do the following:
• Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. You should
sign in as a system administrator by using the gibbs username and the 123 password.
 Implementing Service Management | 443

• In the company to which you are signed in, be sure that you have enabled the Service Management feature
on the Enable/Disable Features (CS100000) form.
• On the Company and Branch Selection menu on the top pane of the Acumatica ERP screen, select the
Service and Equipment Sales Center branch.
• Download the following Excel file, which includes the list of postal codes needed for the current activity:
GeoZones_JAMAICA

While in this activity, you are going to use the list of postal codes included in the provided Excel
file, in a production environment, you will need to prepare an Excel file with the postal codes
that are related to your service area.

Step 1: Adding a Service Area

To add a service area to the system, do the following:
1. Open the Service Areas (FS201900) form.
2. On the form toolbar, click Add New Record.
3. In the Summary area of the form, specify the following settings:
• Service Area ID: JAMAICA
• Description: Jamaica
• Country: US - United States of America
4. On the form toolbar, click Save.
5. On the table toolbar of the Postal Codes tab, click Load Records from File; then upload the postal codes
from the GeoZones_JAMAICA.xlsx file.
In the Common Settings dialog box, which opens when you click Load Records from File, leave the default
values, and click OK. In the Columns dialog box, again click OK.
The list of postal codes appears on the Postal Codes tab. Together they define the area to be served.

For a service area with just a few postal codes, you would have instead done the following for
each postal code included in the service area: On the Postal Codes tab, click Add Row on the
table toolbar, and enter a postal code included in the service area.

6. On the form toolbar, click Save.

7. In the Service Area ID box of the Summary area, click the magnifier button. In the lookup table that opens,
you can see the list of service areas created in the system, including the JAMAICA service area, which you
have created in this step.

Step 2: Assigning Employees to the New Service Area

To assign staff members to particular geographical areas, you can assign each staff member to the service area
where they are available for performing services.
To assign multiple staff members to the service area you created, do the following:
1. While you are still viewing the Service Areas (FS201900) form, in the Service Area ID box, select JAMAICA.
2. On the Employees tab, add rows for the following employees, and save your changes:
• EP00000043 (Edward Smith)
• EP00000044 (Ricardo Martinez)
3. On the form toolbar, click Save.
 Implementing Service Management | 444

You can also assign any number of service areas to a particular staff member on the Service Areas tab
of the Employees (EP203000) form.

Staff Members

The topics of this chapter explain how to configure staff members. A staff member in Acumatica ERP is a person
who delivers the services that your company offers to customers.

Staff Members: General Information

A staff member is a person who is responsible for delivering the services that your company offers to customers.

Learning Objectives
In this chapter, you will learn how to define an employee as a staff member.

Applicable Scenarios
You define employees as staff members in Acumatica ERP in any of the following cases:
• When you initially configure the service management functionality in Acumatica ERP
• When your organization defines a new employee as a staff member in service management

Types of Staff Members

You can enter, keep, and manage information about staff members of the following types:
• Employee: A staff member of this type is an employee of your company. You use the Employees (EP203000)
form to add, view, and edit a record for a staff member of this type. For the employee to be defined as a staff
member, you must select the Staff Member in Service Management check box on the General Info tab
(Employee Settings section) of the form.
• Vendor: A staff member of this type is a third party that your company engages to perform services. You use
the Vendors (AP303000) form to add, view, and edit a vendor account that is a staff member. For the vendor
to be defined as a staff member, you must select the Staff Member in Service Management check box on
the General tab (Vendor Properties section) of the form.
In Acumatica ERP, you can specify any existing employee or a vendor as a staff member, or create a new employee
or vendor and specify it as a staff member. You can view the list of staff members of both types on the Staff
(FS205500) form.

Staff Members: Management of Staff Members' Information

Acumatica ERP provides you with the ability to enter, store, and manage information about staff members, which
are entered as employees or vendors in the system. This information, which is described further in this topic,
includes each staff member's skills, licenses and certifications, location, and work schedule. You can use this
information to select the correct staff member to perform a particular service.
 Implementing Service Management | 445

Types of Staff Members

On the Staff (FS205500) form, you can view the basic settings of each staff member defined in the system, including
the type: Employee or Vendor.
You can enter the employee data manually on the Employees (EP203000) form. If you have a larger number of
employees, you may want to create an import scenario and upload the data from a file. For details on import
scenarios, see Simplified Scenarios for Data Import.
To add a new staff member of the Employee type, you click Add Employee on the Staff form. The system opens the
Employees form in a new window, and you can enter the employee's settings. To define the employee as a staff
member, you select the Staff Member in Service Management check box on the General Info tab (Employee
Settings section) of the form.
If the employee has already been entered in the system, you open the employee record on the Employees form,
define the employee as a staff member, and save your changes.
To add a new staff member of the Vendor type, you click Add Vendor on the Staff form. The system opens the
Vendors (AP303000) form in a new window, and you can enter the vendor's settings. To define the vendor as a staff
member, you select the Staff Member in Service Management check box on the General tab (Vendor Properties
section) of the form.
If the vendor has already been entered in the system, you open the vendor record on the Vendors form, define the
vendor as a staff member, and save your changes.

Work Schedules of Staff Members

In Acumatica ERP, you can define the times when each staff member is available to provide services. You first
define a staff schedule rule on the Staff Schedule Rules (FS202001) form, and then generate a schedule for a specific
period of time on the Generate Staff Schedules (FS500400) form.
Aer you generate staff schedules, you can use the calendar boards to assign staff members to appointments or
service orders that take place in time periods when the staff member is available for work. For details, see Staff
Schedules.

You can create rules for staff members of the Employee type only.

Skills and Licenses of Staff Members

If the services that your company offers require special credentials, you should specify the skills and licenses each
staff member has. Before you start assigning skills and licenses to staff members, you enter the required skills and
license types on the Skills (FS200600) and License Types (FS200900) forms, respectively. Then you can assign the
needed skills to a staff member on the Employees (EP203000) form. For details, see Skills.
You can assign needed licenses to a specific staff member directly when you create a new license on the Licenses
form, or assign licenses to the staff member on the Employees form. For details, see Licenses.

You can assign skills and licenses to staff members of the Employee type only.

Service Areas of Staff Members

You can divide the area where your company offers services into multiple service areas that are defined by postal
codes. In this case, if a staff member can provide services only in specific service areas, you assign these service
areas to this staff member on the Service Areas (FS201900) or Employees (EP203000) form. For details, see Service
Areas.
 Implementing Service Management | 446

You can assign service areas to the staff members of the Employee type only.

Staff Members: Implementation Activity

Only staff members can be assigned to appointments. To be able to use particular employees on service
management forms, you have to define these employees as staff members.

You can also define vendors as staff members if this may be needed for any particular services in your
company. In these cases, the vendor performs these services on behalf of your company rather than
an employee of your company doing so.

In this activity, you will learn how to define an employee as a staff member. You will change the settings of an
employee so that it becomes available on the service management forms.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that the SweetLife Service and Equipment Sales Center needs to define a new employee as a staff
member, so that it can be assigned to appointments in Acumatica ERP.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• The minimum system configuration is performed as described in Company Without Branches: General
Information.
• The minimum configuration of the service management functionality is performed as described in Basic
Service Management Configuration: Implementation Activity.
• On the Users (SM201010) form, the myers user account has been created, and the EP00000041 (Michael
Myers) employee has been associated with the user account. That is, the employee name has been selected
in the Linked Entity box.
• On the Employees (EP203000) form, EP00000041 - Michael Myers has been defined.

Process Overview
On the Employees (EP203000) form, you will define an employee that is going to perform services in your company
as a service management staff member.

You can go directly to this form, as described in the step below, or open the Staff (FS205500) form,
click Add Employee on the table toolbar, and then perform Instructions 2–4 of the step below.

System Preparation
Before you start defining an employee as a staff member, do the following:
 Implementing Service Management | 447

1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded; you should
sign in as system administrator by using the gibbs username and the 123 password.
2. As a prerequisite activity, in the company to which you are signed in, be sure you have enabled the Service
Management feature on the Enable/Disable Features (CS100000) form.
3. On the Company and Branch Selection menu, on the top pane of the Acumatica ERP screen, select the
Service and Equipment Sales Center branch.

Step: Defining Employee as a Staff Member

To define the EP00000041 - Michael Myers employee as a staff member that can perform services, do the following:
1. On the Employees (EP203000) form, open the EP00000041 - Michael Myers employee.
2. In the Employee Settings section of the General Info tab, select the Staff Member in Service Management
check box.
3. On the form toolbar, click Save.
4. On the Staff (FS205500) form, view the list of staff members who can deliver the services of the SweetLife
Fruits & Jams company, and be sure the list includes the employee whose settings you have changed.

Staff Schedules

The topics of this chapter explain how to configure staff schedules. A staff schedule defines the working days and
hours of a staff member who delivers the company's services.

Staff Schedules: General Information

To be able to assign an appropriate staff member to an appointment, you have to create a staff schedule, in which
you enter the working days and hours of a staff member who delivers the company's services. Each staff member
can have a different working schedule based on their employment contract; planned time off work should also be
reflected in these working schedules.
In Acumatica ERP, you maintain information about staff availability by using staff schedule rules. A staff schedule
rule indicates how the working (or non-working) days and hours are calculated for this person. You can define any
number of schedules for one employee. For example, you can create a new rule that defines unavailable days each
time an employee takes days off for a vacation.
To apply the rules you create to the system (and thus make them effective), you must generate the work schedule.

Learning Objectives
In this chapter, you will learn how to do the following:
In this lesson, you will learn how to do the following:
• Create a schedule rule for a particular staff member
• Generate a schedule for a certain period of time
 Implementing Service Management | 448

Applicable Scenarios
You create schedule rules and then generate schedules for staff members when you need the ability to accurately
assign the staff members to appointments. That is, you want to be able to assign staff members to appointments
for performing services and be sure that the staff members are available during the assigned times.

Staff Schedules: Overview of the Setup Process

You create a staff schedule for each employee you have defined as a staff member.
To do this, first you need to configure a schedule rule defining either available hours or unavailable hours. Once the
schedule rule has been created, you generate a schedule that is based on this rule.

You can create rules for staff members of the Employee type only. For details on staff member types,
see Staff Members: General Information.

Creating a Staff Schedule Rule

On the Staff Schedule Rules (FS202001) form, you select one of the following option buttons under Scheduling
Settings to specify the type of the rule:
• Availability: The schedule defines the times when a staff member is available to perform services.
• Unavailability: The schedule defines the times when a staff member is not available to perform services (for
instance, the times the employee is on vacation or sick leave).
Then you specify the recurrence settings, which defines how oen the schedule will be applied. On the Recurrence
tab, you select one of the following option buttons under Frequency Settings:
• Daily: The schedule applies daily or every x days.
• Weekly: The schedule applies weekly or every x weeks.
• Monthly: The schedule applies monthly or every x months.
• Yearly: The schedule applies yearly or every x years.
Aer you have selected an option button, you specify the settings below the group of option buttons. These
settings depend on the selected frequency type as follows:
• If you selected the Daily option button, in the Daily Settings section, you have to specify the time interval in
days when the schedule applies. For example, if you specify every 1 day, the schedule applies every day, and
if you specify every 2 days, the schedule applies every other day.
• If you selected the Weekly option button, in the Weekly Settings section, you have to specify the time
interval in weeks and select the check boxes for the day or days of the week when the schedule applies. For
example, if you specify every 2 weeks and select Monday, the schedule applies Monday of every other week.
• If you selected the Monthly option button, in the Monthly Settings section, you have to specify the time
interval in months and select the check boxes for the day or days of the month when the schedule applies.
You can specify the day in either of the following ways: by the number of a specific day of the month, or by
the week of the month and the day of the week. For example, you can specify that the schedule repeats
every 2 months on the 15th of the month, or on the 3rd Monday of the month. You can specify up to four
days for the Monthly frequency type.
• If you selected the Yearly frequency type, in the Yearly Settings section, you have to specify the time
interval in years, the month or months of the year, and the day of the month when the schedule applies. You
can specify the day of the month in either of the following ways: by the number of the day of the month (for
 Implementing Service Management | 449

example, every 4 years on the 20th day of February and March), or by the week of the month and the day of
the week (for example, every year on the 2nd Monday of February and March).

Generating a Schedule
Once a schedule rule is created, you have to generate the schedule for a certain period of time for a staff member.
This gives you the ability to select the staff member for performing a service by using accurate times when the staff
member is available to perform services. You can generate schedules manually or create an automation schedule
to generate these scheduling rules. For details, see Automated Processing: General Information.
To generate schedules manually, you use the Generate Staff Schedules (FS500400) form. You can navigate directly
to this form, or you can navigate to this form from the Staff Schedule Rules (FS202001) form by clicking the
Generate Staff Schedules button on the form toolbar. (This button becomes available aer the staff schedule rule
has been saved.) On the Generate Staff Schedules form, you can filter the list by staff member, branch, and branch
location, and you have to select the date up to which you want to generate schedules in the system. You can then
generate all listed staff schedule rules or only those you select.
Once you have generated staff schedules, you can assign staff members to appointments or service orders
according to their schedules by using the calendar boards.

Viewing the Staff Schedule Rules and the Generated Schedules

You can use the following forms to view schedule rules:
• If you want to view all schedules created in the system or all schedules for a particular staff member, you
use the Staff Schedule Rules (FS4010PL) list of records. You can view the schedule rules for a particular staff
member by selecting the staff member in the Employee Name box. For each schedule rule, you can view
(and change if needed) its settings on the Staff Schedule Rules (FS401000) form by clicking the schedule
number in the Staff Schedule Nbr. column.
• If you want to see the list of schedule rules that have not yet been generated, you use the Generate Staff
Schedules (FS500400) form. For each schedule rule, you can view (and change if needed) its settings on the
Staff Schedule Rules (FS401000) form by clicking the schedule number in the Staff Schedule Nbr. column.
• If you want to view and change the generated schedules for a particular staff member for the current
business week, you use the Staff Working Schedule Board (FS300500) form. You can also change the calendar
settings to view the staff member schedule for the selected date, the week of the selected date, or the
month of the selected date. Also, you can filter staff member schedule rules by branch and branch location.

Staff Schedules: To Create a Schedule Rule and Generate the Work Schedule

In the following implementation activity, you will learn how to create a schedule rule for a staff member and
generate the work schedule.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that an employee of the SweetLife Service and Equipment Sales Center works from Monday through
Friday, 9 AM to 6 PM. Acting as an administrative user, you need to create a schedule rule based on which a
particular employee's schedule will be generated in the system and available on the schedule boards.
 Implementing Service Management | 450

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• The minimum system configuration, which is described in Company with Branches that Do Not Require
Balancing: General Information, has been performed.
• The SWEETLIFE company has been created on the Companies (CS101500) form. This company has multiple
branches created on the Branches (CS102000) form, including SWEETEQUIP (Service and Equipment Sales
Center).
• On the Service Management Preferences (FS100100) form, the minimum settings have been specified,
including specifying the numbering sequences and work calendar, for the service management functionality
to be used.
• On the Branch Locations (FS202500) form, the WEST BRIGHTON branch location of the SWEETEQUIP (Service
and Equipment Sales Center) branch has been defined.
• On the Users (SM201010) form, the frank user account has been created. The EP00000042 (Chase Frank)
employee has been associated with the user account. That is, the employee name has been selected in the
Linked Entity box.
• On the Employees (EP203000) form, EP00000042 (Chase Frank) has been defined. On the General Info tab
(Employee Settings section), the Staff Member in Service Management check box has been selected, so
you can assign this employee to perform services.

Process Overview
On the Staff Schedule Rules (FS202001) form, you will create a work schedule rule. Once the rule is generated, you
will generate the work schedule on the Generate Staff Schedules (FS500400) form.

System Preparation
Before you start creating a schedule rule and schedule, in the info area, in the upper-right corner of the top pane
of the Acumatica ERP screen, click the Business Date menu button, and select 1/1/2023 on the calendar. In this
activity, you will create a work schedule rule on this business date.

System Preparation
Before you start creating a schedule rule and schedule, do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. You should
sign in as a system administrator by using the gibbs username and the 123 password.
2. In the company to which you are signed in, be sure that you have enabled the Service Management feature
on the Enable/Disable Features (CS100000) form.
3. On the Company and Branch Selection menuon the top pane of the Acumatica ERP screen, select the
Service and Equipment Sales Center branch.
4. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, click the Business
Date menu button, and select 1/1/2023 on the calendar. In this activity, you will create a work schedule rule
on this business date.

Step 1: Creating a Schedule Rule

To create a work schedule rule for the EP00000042 - Chase Frank employee, do the following:
1. On the Staff Schedule Rules (FS202001) form, add a new record.
 Implementing Service Management | 451

Instead of directly opening the Staff Schedule Rules (FS202001) form and selecting the
employee, you can navigate to the form for an employee on the Employees (EP203000) form—
for example, while you are defining a new or existing employee as a staff member. You click the
Schedule button on the form toolbar to open the Staff Schedule Rules form for the employee.

2. In the Staff Member box of the Summary area, select EP00000042 - Chase Frank.
3. In the Branch box, notice that SWEETEQUIP is selected.
4. In the Branch Location box, select WEST BRIGHTON.
5. In the Description box, enter Working hours.
6. In the Start Date box, leave the current business date (which is inserted by default).
7. In the Scheduling Time section, specify the following settings:
• Start Time: 9:00 AM
• End Time: 6:00 PM
8. Under Schedule Settings, leave Availability selected. This means that a schedule rule defines the days and
times when the staff member is available to work.
9. On the Recurrence tab, specify the settings as follows:
• Frequency Settings group: Select Weekly.
• Weekly Settings section: Select the following check boxes: Monday, Tuesday, Wednesday, Thursday,
and Friday.
10.On the form toolbar, click Save.
11.In the warning dialog box, click OK.
The schedule rule for EP00000042 - Chase Frank has been created. However, it has not been processed yet
and it does not affect the working schedule. The rule will come into effect only aer you apply it to the
system by generating the staff working schedule.

Step 2: Generating the Staff Schedule

The staff schedule rules you create in the system are not applied automatically; you must generate the work
schedule explicitly. You should generate the working schedule again if you later change the employee's working
hours in the existing schedule rule, add another schedule rule to reflect a planned vacation, or hire a new staff
member.
To generate the work schedule for the employee, do the following:
1. While you are still viewing the Staff Schedule Rules (FS202001) form with the schedule rule that you have
just created, on the form toolbar, click Generate Staff Schedules. The Generate Staff Schedules (FS500400)
form opens.
2. In the Employee Name box of the Selection area, ensure that Chase Frank is selected.
3. In the Generate Up To box of the Generation Options section, ensure that the date that is one year from
the current business date is specified.
4. On the Schedules tab, select the unlabeled check box in the row with Chase Frank specified in the
Employee Name column.
5. On the form toolbar, click Process.
The system opens the Processing dialog box, in which you can see the status of the processing. Aer the
processing has successfully completed, click Processed. The table with the processed records is shown in
the window. The work schedule has been generated.

Once the schedule is generated, you can assign the staff member to appointments and service orders.
 Implementing Service Management | 452

Staff Schedules: Modifying Working Hours on the Schedule Board

The staff working schedule board is a dashboard that displays the available and unavailable time of the selected
staff member. On this two-dimensional board, the horizontal dimension displays dates, and the vertical dimension
displays times within the dates. The system places the elements appropriately with regard to the two dimensions
of the board. Unspecified time (such as nighttime hours) has a plain white background, available working time is
shaded in blue, and occupied time (when appointments are planned to take place) is shaded in red.
You use the staff working schedule board to modify the generated working schedules of the staff members by
deleting working time slots or adjusting the starting and ending times of work.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that the SweetLife Service and Equipment Sales Center needs to more effectively manage the availability
of staff members. The service manager wants to know every staff member's working and unavailable hours, as well
as to be able to schedule appointments and adjust a staff member's working schedule on the staff schedule board.
Acting as a service manager, you will modify the working hours for a particular day. (In this activity, you will also
remove working hours for a specific day, for educational purposes.)

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• The minimum system configuration, which is described in Company with Branches that Do Not Require
Balancing: General Information, has been performed.
• The SWEETLIFE company has been created on the Companies (CS101500) form. This company has multiple
branches created on the Branches (CS102000) form, including SWEETEQUIP (Service and Equipment Sales
Center).
• On the Service Management Preferences (FS100100) form, the minimum settings have been specified,
including specifying the numbering sequences and work calendar, for the service management functionality
to be used.
• On the Branch Locations (FS202500) form, the WEST BRIGHTON branch location of the SWEETEQUIP (Service
and Equipment Sales Center) branch has been created.
• On the Users (SM201010) form, the frank user account has been created, and the EP00000042 (Chase Frank)
employee has been associated with the user account. That is, the employee name has been selected in the
Linked Entity box.
• On the Employees (EP203000) form, EP00000042 (Chase Frank) has been defined. On the General Info tab
(Employee Settings section), the Staff Member in Service Management check box has been selected, so
you can assign this employee to perform services.
• On the Staff Schedule Rules (FS202001) form, the work schedule rule has been defined for EP00000042 -
Chase Frank, and on the Generate Staff Schedules (FS500400) form, the work schedule has been generated.

Process Overview
On the Staff Working Schedule Board (FS300500) form, you will review a staff member's schedule for the next
month, modify the working hours for a specific day, and then remove the working hours for a particular day.
 Implementing Service Management | 453

System Preparation
Before you begin modifying working hours, do the following:
• Sign in to a company with the U100 dataset preloaded as a service manager by using the davis username
and the 123 password.
• In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, click the Business
Date menu button, and select 1/1/2023 on the calendar. In this activity, you will create a work schedule rule
on this business date.
• As a prerequisite activity, in the company to which you are signed in, be sure that you have completed the
instructions described in Staff Schedules: To Create a Schedule Rule and Generate the Work Schedule.

System Preparation
Before you begin modifying working hours, do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. You should
sign in as a system administrator by using the davis username and the 123 password.
2. In the company to which you are signed in, be sure that you have enabled the Service Management feature
on the Enable/Disable Features (CS100000) form.
3. On the Company and Branch Selection menu on the top pane of the Acumatica ERP screen, select the
Service and Equipment Sales Center branch.
4. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, click the Business
Date menu button, and select 1/1/2023 on the calendar. In this activity, you will create a work schedule rule
on this business date.
5. As a prerequisite activity, in the company to which you are signed in, be sure that you have completed the
instructions described in Staff Schedules: To Create a Schedule Rule and Generate the Work Schedule.

Step: Modifying a Staff Schedule on the Schedule Board

To view and adjust the working schedule for a staff member, do the following on the Staff Working Schedule Board
(FS300500) form:
1. In the Date box on the upper right corner of the dashboard, select 1/1/2023.
2. In the Staff box on the upper pane of the dashboard, select Chase Frank. (By default, the signed-in staff
member is selected in the Staff box.)
The dashboard displays Chase Frank's working hours (shaded in blue), as shown in the following
screenshot.
 Implementing Service Management | 454

Figure: The Staff Working Schedule Board form

Notice that the available and unavailable hours in the calendar start from the current date—the date that
you selected when you created the schedule rule for this staff member.
3. On the toolbar, click the Month button to view Chase Frank's working calendar from the current date until
the end of the current month.
Identify Chase Frank's next working day. (If necessary, move between dates by using the arrows in the top
right corner of the toolbar.)
4. Change Frank's working hours for the next working day to be from 8:00 AM to 11:00 AM, as shown in the
following screenshot, by dragging the time slot borders. When you move the cursor onto the schedule, the
double-sided arrow appears on the edges of the time slot. Click this arrow on the bottom edge of the time
slot and move it vertically in the same day until the button edge aligns with 11:00 AM. You can adjust the
time slot of any schedule by changing its starting and ending time.

Figure: Changed working hours

5. Remove that working day from Chase Frank's working calendar by clicking the trash can icon in the top right
corner of the corresponding time slot.
 Implementing Equipment Management | 455

Implementing Equipment Management

This chapter describes the minimum required configuration of the equipment management functionality in
Acumatica ERP.

Configuring Equipment Management

Before you start creating entities and processing documents related to equipment management in Acumatica ERP,
you must perform the necessary configuration. This configuration includes enabling the necessary features and
specifying the equipment management preferences.
In this chapter, you will read about the configuration of the equipment management functionality.

Equipment Management: General Information

You perform the configuration of the equipment management functionality if the company that you are configuring
tracks services performed on pieces of equipment and their components, and if the company sells equipment to
customers and later provides maintenance for it.
This topic provides a general overview of the configuration steps that you have to perform before you start entering
equipment-related entities and processing service contacts in the system.

Learning Objectives
In this chapter, you will learn how to perform the initial configuration for the equipment management functionality.
In particular, you will do the following:
• Learn about the settings that have to be specified
• Enable the needed system features
• Specify the minimum required settings for the equipment management functionality

System Features to Be Enabled

To be able to configure and use the equipment management functionality in the system, you need to first enable
the following features on the Enable/Disable Features (CS101000) form:
• Service Management: Is required for service management; allows you to configure service order processing.
• Equipment Management: Allows users to manage and track equipment as well as process equipment service
contracts.

Each particular feature may be subject to additional licensing; please consult the Acumatica ERP sales
policy for details.

Prerequisites
The company configuration, sales order management configuration, and service management configuration must
be completed before you implement the service management functionality. For details, see Company Without
Branches, Order Management with Inventory, and Basic Service Management Configuration.
 Implementing Equipment Management | 456

Before you start implementing equipment management functionality in the system, on the Numbering Sequences
(CS201010) form, the numbering sequence for equipment entities has to be created in the system.
Aer all prerequisites have been met and the necessary entities have been created, you can specify equipment
management preference settings, including warranty settings and billing.

Configuration of Warranty Calculation

On the Equipment Management Preferences (FS100300) form, you select how the system determines the start date
for the calculation of warranty periods. You select one of the option buttons under Calculate Warranty From as
follows:
• If the warranty period is calculated from the sales date of the equipment or component, you select Sales
Order Date. The date of the sales order document is used as the start date of the warranty period.
• If the warranty period is calculated from the installation date of the equipment or component, you select
Appointment Date. The actual date of the appointment is used as the start date of the warranty period.
• If the warranty period is calculated from the earliest date between the sales date and the installation date,
you select The Earliest of Both Dates.
• If the warranty period is calculated from the latest date between the sales date and the installation date,
you select The Latest of Both Dates.

Configuration of Billing Settings

For service contracts with standardized billing, in the Billing Settings section of the Equipment Management
Preferences (FS100300) form, you have to specify the type of the billing document to be generated. You do one of
the following under Generated Billing Documents:
• If company generates billing documents for service contracts with services only, you select the AR
Documents option button.
• If company generates billing documents for service contracts with both services and inventory items that
were sold to customers along with the services, you select the Sales Orders option button. With this option
selected, you can create shipments if needed and add additional freight costs.
When you have selected the document type, the default settings for it to be used in the billing documents appear
on the form; specify the needed settings.
To configure the system to automatically activate the next period when an invoice is generated for the previous
one, you select the Automatically Activate Upcoming Period check box.

Equipment Management: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for the
managing equipment entities and processing service contracts in the system, and to specify the needed settings
that affect this processing workflow.

Prerequisites
Before you start configuring equipment management, you should make sure that the needed configuration tasks
have been performed, as summarized in the following checklist.
 Implementing Equipment Management | 457

Form Criteria to Check Notes

Multiple forms Make sure that the minimum com-  

pany settings are specified, as de-
scribed in Company Without Branch-
es.

Multiple forms Make sure that the sales order  

management configuration has
been implemented, as described in
Order Management with Inventory.

Multiple forms Make sure that the service manage-  

ment configuration has been im-
plemented, as described in Basic
Service Management Configuration.

Numbering Sequences (CS201010) Make sure that the numbering se-  

form quences have been created for
equipment entities.

Enable/Disable Features (CS100000) Make sure that the Service Manage-  

form ment feature has been enabled and
the feature that represents the nec-
essary number of staff members (10
Staff Members, 50 Staff Members, or
Unlimited Staff members) has also
been enabled.

Required Settings
To make it possible for users to manage equipment entities and process service contracts, you should navigate to
the form listed in the following table and specify the settings that are described.

Form Action Notes

Equipment Management Prefer- Specify the equipment numbering  

ences (FS100300) form sequence, as well as the equipment
and billing settings.

Equipment Management: Implementation Activity

In this activity, you will learn how to prepare the system to support the managing and tracking of equipment
entities and the processing of service contracts.

Story
Suppose that you, as an implementation manager, need to configure the system for the processing and tracking of
the sales of equipment, as well as for the processing of service contracts for sold equipment.
 Implementing Equipment Management | 458

System Preparation
Before you start configuring the service management functionality, you need to make sure the following general
steps have been performed:
1. In a new tenant, a company with the basic settings has been prepared, as described in the Company Without
Branches: General Information.
2. The sales order management functionality has been prepared, as described in Configuration of Order
Management: Implementation Activity.
3. The service management functionality has been configured, as described in Basic Service Management
Configuration: Implementation Activity.
4. On the Numbering Sequences (CS201010) form, the numbering sequences to be used for equipment entities
have been created.
5. On the Enable/Disable Features (CS100000) form, the Equipment Management feature has been enabled.

Step: Specifying the Equipment Management Preferences

Specify the basic equipment management settings as follows:
1. Sign in to the company you have prepared with the admin username.
2. Open the Equipment Management Preferences (FS100300) form.
3. In the Equipment Numbering Sequence box of the Numbering Settings section, select FSEQUIPMNT.
4. In the General Settings section, clear the Enable Service on All Target Equipment check box.
5. In the Equipment Settings section, make sure Sales Order Date is selected under Calculate Warranty
From.
This setting means that the date of the sales order document is used as the start date of the warranty
period.
6. In the Billing Settings section, specify the following settings for the contracts with standardized billing:
• Select AR Documents under Generated Billing Documents.
• In the Default Terms box, select 30D - 30 Days.
• Make sure the Automatically Activate Upcoming Period check box is selected.
7. Save your changes on the form.

You have defined the equipment management preference settings. Now you can proceed to creating equipment
entities in the system.
 Implementing Route Management | 459

Implementing Route Management

This chapter describes the minimum required configuration of the route management functionality in Acumatica
ERP.

Configuring Route Management

Before you start creating entities and processing documents related to route management in Acumatica ERP,
you must perform the necessary configuration. This configuration includes enabling the necessary features and
specifying the route management preferences
In this chapter, you will read about the configuration of the route management functionality.

Route Management: General Information

You perform the configuration of the route management functionality if the company that you are configuring
performs scheduled routes and provides services.
This topic provides a general overview of the configuration steps that you have to perform before you start entering
route-related entities and processing routes in the system.

Learning Objectives
In this chapter, you will learn how to perform the initial configuration for the route management functionality. In
particular, you will do the following:
• Learn about the settings that have to be specified
• Enable the needed system features
• Specify the required settings for the service management functionality that are relate to the route
management
• Specify the required settings for the route management functionality

System Features to Be Enabled

To be able to configure and use the equipment management functionality in the system, you need to first enable
the following features on the Enable/Disable Features (CS101000) form:
• Service Management: Is required for service management; allows you to configure service order processing.
• One of the following features, depending on the number of employees that will perform services in the
organization:
• 10 Staff Members: You can define and track up to 10 employees in the system as staff members.
• 50 Staff Members: You can define and track as many as 50 employees in the system as staff members.
• Unlimited Staff Members: An unlimited number of employees can be defined and tracked in the system as
staff members.
• Route Management: Is required for route management; allows you to process routes and the related service
contracts.
• One of the following features, depending on the number of vehicles that are used by the organization:
• 10 Vehicles: You can define and track as many as 10 vehicles in the system.
• 50 Vehicles: You can define and track up to 50 vehicles in the system.
 Implementing Route Management | 460

• Unlimited Vehicles: An unlimited number of vehicles can be defined and tracked in the system.

Each particular feature may be subject to additional licensing; please consult the Acumatica ERP sales
policy for details.

Prerequisites
The company configuration, sales order management configuration, and service management configuration must
be completed before you implement the service management functionality. For details, see Company Without
Branches, Order Management with Inventory, and Basic Service Management Configuration.

Before you start implementing route management functionality in the system, on the Numbering Sequences
(CS201010) form, the numbering sequence for route executions has to be created in the system.
Aer all prerequisites have been met and the necessary entities have been created, you can specify equipment
management preference settings that include warranty settings and billing.

Configuration of Billing Settings

For service contracts with standardized billing, in the Billing Settings section of the Route Management Preferences
(FS100400) form, you have to specify the type of the billing document to be generated. You do one of the following
under Generated Billing Documents:
• If company generates billing documents for route service contracts with services only, you select the AR
Documents option button.
• If company generates billing documents for route service contracts with both services and inventory items
that were sold to customers along with the services, you select the Sales Orders option button. With this
option selected, you can create shipments if needed and add additional freight costs.
When you have selected the document type, the default settings for it to be used in the billing documents appear
on the form; specify the needed settings.
To configure the system to automatically activate the next period when an invoice is generated for the previous
one, you select the Automatically Activate Upcoming Period check box.

Route Management: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for the
management of routes and the processing of route service contracts in the system.

Prerequisites
Before you start configuring route management, you should make sure that the needed configuration tasks have
been performed, as summarized in the following checklist.

Form Criteria to Check Notes

Multiple forms The minimum company settings  

are specified, as described in Com-
pany Without Branches.
 Implementing Route Management | 461

Form Criteria to Check Notes

Multiple forms The sales order management con-  

figuration has been implemented,
as described in Order Management
with Inventory.

Multiple forms The service management configu-  

ration has been implemented, as
described in Basic Service Manage-
ment Configuration.

Numbering Sequences (CS201010) The numbering sequence for route  

form executions has been created.

Employees (EP203000) form The employees that are drivers  

have been defined in the system.

Enable/Disable Features (CS100000) The Route Management feature has  

form been enabled and the feature that
represents the necessary number
of vehicles of the company (10 Vehi-
cles, 50 Vehicles, or Unlimited Vehi-
cles) has been also enabled.

Required Steps
To make it possible for users to execute routes and process route service contracts, you should navigate to the
forms listed in the following table and perform the configuration actions that are described.

Form Action Notes

Service Management Preferences Specify the Bing Map API Key.  

(FS100100)

Route Management Preferences Specify the route numbering se-  

(FS100400) form quence and the billing settings for
contracts with standardized billing.

Service Order Types (FS202300) Create the service order type for  
form route appointments, as described
in Service Order Types: To Create
a Service Order Type for Route Ap-
pointments.

Skills (FS206000) form Create the driver skills.  

Employees (EP203000) form Assign a driver skill to all the em-  

ployees that are drivers.

Vehicle Types (FS204200) form Create all the types of vehicles of  

the company.
 Implementing Route Management | 462

Form Action Notes

Item Classes (IN201000) form Modify the item classes to contain  

the default settings of the compa-
ny's route services.

Additional Settings
For faster data entry, you can specify a route service order type that will be selected on the data entry forms in the
Default Service Order Type box of the Route Management Preferences (FS100400) form.
You can also perform the following optional steps on the same form:
• To set up the system to calculate statistics on route execution by using Bing Maps API on the Route
Document Details (FS304000) form, you select the Calculate Route Statistics Automatically check box.
If this check box is cleared, to calculate route execution statistics, users will have to click the Calculate
Route Statistics button on the Route Document Details form.
• To enable the tracking of GPS locations at start and end point of the executed route, you select the Track
Start and Complete Location of Route check box. The GPS locations will be displayed on the Location tab
of the Route Document Details form.
• To set up appointments added manually to a route on the Routes (FS203700) form to be first in the route,
you select the Set Appointments Created Manually as First in Route check box.
If this check box is cleared, the added appointments are placed last in the route.
• To make it possible to specify months in route contract schedules when they are applicable, you select
the Enable Seasons in Schedule Contracts check box. The system makes the Season Settings section
available on the Recurrence tab of the Service Contract Schedules (FS305100) and Route Service Contract
Schedules (FS305600) forms.

Route Management: Implementation Activity

In this activity, you will learn how to prepare the system to support the processing of routes and route service
contracts.

Story
Suppose that you, as an implementation manager, need to configure the system for the processing of the routes
that the company executes and for the processing of route service contracts.

System Preparation
Before you start configuring the route management functionality, you need to make sure the following general
steps have been performed:
1. In a new tenant, a company with the basic settings has been prepared, as described in the Company Without
Branches: General Information.
2. The service management functionality has been prepared, as described in Basic Service Management
Configuration: Implementation Activity.
3. On the Numbering Sequences (CS201010) form, the numbering sequences to be used equipment entities
have been created.
4. On the Enable/Disable Features (CS100000) form, the Equipment Management feature has been enabled.
 Implementing Route Management | 463

5. On the Bing Maps Dev Center website, the API key for Bing Maps has been obtained.

Step 1: Specifying Settings for Maps

To be able to view information on maps, you need to perform the following steps:
1. Sign in to the company you have prepared with the admin username.
2. Open the Service Management Preferences (FS100100) form.
3. On the Calendars and Maps tab (Map Settings section), in the Bing Map API Key box, specify the obtained
API key.
4. Save your changes on the form.

Step 2: Specifying the Route Management Preferences

Specify the basic route management settings as follows:
1. Open the Route Management Preferences (FS100400) form.
2. In the Route Numbering Sequence box of the Numbering Settings section, select FSROUTE.
3. In the Billing Settings section, specify the following settings for the route contracts with standardized
billing:
• Select AR Documents under Generated Billing Documents.
• In the Default Terms box, select 30D - 30 Days.
• Make sure the Automatically Activate Upcoming Period check box is selected.
4. Save your changes on the form.

You have defined the route management preference settings. Now you can proceed to creating route templates in
the system.
 Implementing Manufacturing | 464

Implementing Manufacturing
This chapter describes the minimum required configuration of Acumatica ERP Manufacturing Edition.

Preparing the System for Manufacturing Implementation

Before you start implementing manufacturing functionality in Acumatica ERP, you need to prepare the system,
such as making sure that the required features have been enabled and creating entities that will be used in
manufacturing processed, as described in this chapter.

System Preparation for Manufacturing Implementation: General Information

Before you start implementing the manufacturing functionality in Acumatica ERP, you need to prepare the system
—that is, specify the general settings that will be used by particular manufacturing processes—as described in the
following sections.

Learning Objectives
In this chapter, you will learn how to do the following:
• Enable the needed set of features before you start implementing manufacturing
• Specify the required settings to prepare the system for implementing manufacturing
• Create stock items involved in manufacturing

Applicable Scenarios
You configure general settings for manufacturing in either or both of the following cases:
• When you are initially implementing Acumatica ERP and the Manufacturing feature is included in your
license
• When you have purchased the Manufacturing feature, and you need to configure manufacturing in the
existing Acumatica ERP system

Prerequisites
Before you start preparing the system to implementing manufacturing, you should make sure that the following
criteria have been met:
1. The general ledger functionality has been configured, as described in General Ledger: General Information.
2. Order and inventory management functionality have been configured. For details, see Configuration of Order
Management: Implementation Activity.
3. For integration with projects, the project management functionality has been configured, as described in
Basic Project Configuration: General Information.

System Preparation for Manufacturing Implementation

To implement the general configuration of manufacturing in Acumatica ERP, you perform the following steps:
 Implementing Manufacturing | 465

1. On the Enable/Disable Features (CS100000) form, you make sure that the Manufacturing feature and all
nested features that you will use in your system are enabled. For the list of the manufacturing-related
features, see Preparing an Instance: Acumatica ERP Features.

In a production environment, aer the features are enabled, you have to activate the
Acumatica ERP license by using the Activate License (SM201510) form. Each particular feature
may be subject to additional licensing; please consult the Acumatica ERP sales policy for
details.

2. On the Numbering Sequences (CS201010) form, you create the numbering sequences for manufacturing
batches and entities.
3. On the Companies (CS101500) form, you specify the number of decimal places for quantities and for prices
and costs.
4. On the Chart of Accounts (GL202500) form, you create the GL accounts to be used in manufacturing
processes. For details, see System Preparation for Manufacturing Implementation: General Ledger Accounts.
5. On the Posting Classes (IN206000) form, you create the posting classes to be used for the inventory items
involved in manufacturing.
6. On the Availability Calculation Rules (IN201500) form, you specify the availability calculation rules for the
stock items to be involved in manufacturing.
7. If the Inventory Replenishment feature (in the Inventory and Order Management group of features) is
enabled on the Enable/Disable Features form, on the Replenishment Classes (IN208800) form, you create
replenishment classes for items to be manufactured and purchased. If the feature is disabled, you specify
replenishment settings for item classes or particular stock items.
8. On the Warehouses (IN204000) form, you define the warehouses and locations that will be involved in
manufacturing.
9. On the Item Classes (IN201000) form, you create the item classes that will provide the default settings for
the stock items involved in manufacturing.
10.On the Stock Items (IN202500) form, you create the stock items to be used in manufacturing.
11.On the Item Warehouse Details (IN204500) form, for items involved in manufacturing that can be stored in
multiple warehouses, you specify the item settings that are specific to a particular warehouse.
12.On the Employees (EP203000) form, you specify the needed setting for employees that will be involved in
production.
13.On the Order Types (SO201000) form, you configure the sales order types that will be used in production
management.
14.On the User Roles (SM201005) form, you assign user roles dedicated for manufacturing functionality to
users involved in production.

Posting Settings
A variety of GL accounts must be created in the system on the Chart of Accounts (GL202500) form and then specified
on the forms that provide posting settings for transactions related to manufacturing processes. You need to create
specific GL accounts and specify them in the system as follows:
• You need to create the Work in Progress (WIP) account and the WIP Variance account, which are required for
users to create production orders. The accounts should then be specified on the Posting Classes (IN206000)
form for the posting class; if posting classes are not used, the accounts should be specified on the Production
Order Types (AM201100). For more information about posting classes, see Posting Classes Creation: General
Information.
• You need to create a specific Labor account for labor expenses to be reported. Then you create a labor code
by using the Labor Codes (AM206500) form and specify the corresponding account in the settings of this
code. Labor codes are required when you create work centers on the Work Centers (AM207000) form. If
 Implementing Manufacturing | 466

indirect time will be reported according to the manufacturing processes of your organization, you can also
create a GL account for indirect labor expense or you can use the same account as you use for direct labor. If
you create a separate GL account for indirect labor expense, you also need to create a separate labor code.
• If overhead, tooling, machine, or scrap costs are to be charged to production orders then you need to
create a separate expense account to track each of these types of costs. The forms where you specify these
accounts are the following:
• Overhead (AM202500): On this form, you specify the overhead GL account for each overhead.
• Machines (AM204500): On this form, you specify a GL account used for machine costs.
• Tools (AM205500): On this form, you specify a GL account used for tool costs.
• Reason Codes (CS211000): On this form, you create a reason code specifically for scrap and specify the
GL account that will be used for scrap costs.

Warehouse Settings
You need to define each warehouse and its locations where the stock items involved in manufacturing will be
stored by using the Warehouses (IN204000) form. You may use an existing warehouse or create a separate one.
You define a warehouse involved in manufacturing as follows:
1. On the Locations tab, you define the locations that will be involved in manufacturing as follows:
• For each warehouse location that is used for planning purposes within material requirements planning
(MRP), you select the MRP check box.
• For each location used for storing materials, you select the Sales Allowed and Production Allowed
check boxes to indicate that this location can be used to issue items to production orders.
• For each location used for storing manufactured items, you select the Receipts Allowed and Production
Allowed check boxes to indicate that this location can be used to receive items from production orders.
2. On the GL Accounts tab, you specify the Work in Progress and WIP Variance accounts.
3. In the General section of the Manufacturing tab, you select check boxes for the entities or documents
to indicate which supply and demand are considered for this warehouse during material requirements
planning. We recommend that all check boxes be selected in a production system.

For more information about warehouses and warehouse locations, see Warehouses: General Information and
Warehouse Locations and Single-Step Transfers: General Information.

Availability Calculation Settings

For each item to be added to manufacturing transactions, you need to specify whether it will be available for
issuing. For this purpose, on the Availability Calculation Rules (IN201500) form, you create or modify an availability
calculation rule, in which you also select or clear check boxes for plan types related to manufacturing. You can
include or deduct the quantities of items added to production orders in the available quantities of items.
For details about availability calculation, see Configuration of Availability Calculation Rules: General Information.

Replenishment Settings
To indicate that a stock item is manufactured and must be included in material requirements planning, you specify
replenishment settings as follows:
• If you use the replenishment functionality in Acumatica ERP—that is, the Inventory Replenishment feature
is enabled on the Enable/Disable Features (CS100000) form—on the Replenishment Classes (IN208800)
form, you create two replenishment classes: one for a source of Purchase and another for a source of
Manufacturing, because these are the two key source types material requirements planning will use.
Then you will specify the appropriate replenishment class, which depends on whether the item will be
manufactured or purchased, in the replenishment settings of particular item classes, items, or both.
 Implementing Manufacturing | 467

• If the Inventory Replenishment feature is disabled, you select the needed replenishment source in the
Replenishment Source box of the General tab on the Item Classes (IN201000) for the item class or in the
Source box on the Manufacturing tab of the Stock Items (IN202500) form for the item.

Settings of Items Involved in Manufacturing

Items involved in manufacturing can be purchased (these items are usually components used in the production
process) or manufactured (these items are usually the finished goods to be sold to customers). To provide default
settings for groups of similar items, you create item classes on the Item Classes (IN201000) form. For each item
class, you specify the following settings:
• The posting class with the Work in Progress and WIP Variance GL accounts specified
• The default warehouse where the items of the class will be stored
• The availability calculation rule, which provides information for calculating the availability of items involved
in manufacturing
• Replenishment settings that indicate if items of the class will be produced or purchased
For more information about item classes, see Creation of Stock Item Classes: General Information.
Then on the Stock Items (IN202500) form, you create stock items; this process unfolds somewhat differently
depending on whether the item is manufactured or purchased. For items being manufactured, you perform the
following general steps:
1. You select an item class that was created for items being manufactured.
2. If the Inventory Replenishment feature is enabled on the Enable/Disable Features (CS100000) form, on the
Replenishment tab, you make sure that a replenishment class with the Manufacturing replenishment
source has been added, and you specify the value of the Safety Stock box. This will set a certain level of
inventory in the system to be planned for within material requirements planning.
3. If the Inventory Replenishment feature is disabled, in the Planning Settings section of the Manufacturing
tab, you make sure that the Manufacturing replenishment source is specified, and you add the value in the
Safety Stock box.
4. In the General and Scheduling sections of the Manufacturing tab, you specify the needed settings.

For items being purchased, you perform the following general steps:
1. You select an item class that was created for items being purchased.
2. On the Vendors tab, you specify the vendors from which the item will be purchased and make sure that
the lead time is specified. The specification of the lead time is important so that during the material
requirements planning process, personnel can consider this time when planning the supply.
3. On the Warehouses tab, you make sure that at least one warehouse is specified.
4. On the Price/Cost tab, specify the cost as follows, depending on the valuation method: For items with the
Standard method, specify the cost in the Pending Cost box; for items with all other methods, specify the
cost in the Last Cost box.
5. If the Inventory Replenishment feature is enabled on the Enable/Disable Features form, on the
Replenishment tab, you make sure that a replenishment class with the Purchase replenishment source has
been added.
6. If the Inventory Replenishment feature is disabled, in the Planning Settings section of the Manufacturing
tab, you make sure that the Purchase replenishment source is specified.
7. In the General and Scheduling sections of the Manufacturing tab, you specify the needed settings.

For each item that has warehouse-specific settings, on the Item Warehouse Details (IN204500) form, you also need
to do the following:
1. You make sure that warehouse locations are specified in the Default Receipt To and Default Issue From
boxes, to make data entry easier for users.
 Implementing Manufacturing | 468

2. If an item cost depends on the warehouse where the item is stored, on the Price/Cost tab, you enter a
warehouse-specific cost for the item.
3. If the Inventory Replenishment feature is enabled on the Enable/Disable Features form, on the
Replenishment tab, you make sure that the replenishment class and the replenishment source are
specified correctly in the Replenishment Class and Replenishment Source boxes respectively.
4. If the Inventory Replenishment feature is disabled, on the Replenishment tab, you make sure that the
needed replenishment source is specified in the Replenishment Source box.

Settings of Employees Involved in Manufacturing

To record the labor expenses for employees involved in manufacturing, on the Employees (EP203000) form, you
select the Production Employee check box on the General Info tab.
If you want to post labor transactions by using the employee cost, on the Labor Rates (PM209900) form, you create
the needed cost rates and then specify a cost rate for each employee involved in manufacturing.

Settings of Sales Documents

If the business process of your organization involves users creating production orders directly from sales orders,
you must configure this functionality for each order type you use as follows: On the General tab of the Order Types
(SO201000) form, you select either or both of the following check boxes: Allow Production Orders - Approve
(which provides users with the ability to create production orders from sales orders that have the Approved status)
and Allow Production Orders - Hold (which provides users with the ability to create production orders from sales
orders that have the On Hold status).
Order types that typically used to create production orders are SO (a regular sales order), TR (a transfer order), and
QT (a quote). For quotes, you can also select the Allow Estimating check box to allow users entering estimate data
in sales orders of the type.

We do not recommend that you select this check box for other order types because estimates may
include non-inventory items that cannot be shipped or issued.

Predefined User Roles for Manufacturing

When you configure user access to manufacturing-related forms, you can use the predefined user roles that provide
access to the forms needed in the everyday work of particular employees. You can modify the role permissions to
meet the organization's access policies. You can also apply multiple roles to the same user who takes over multiple
duties.
In the following table, you can view the details of the predefined user roles dedicated for manufacturing.

Role Name Description Responsibilities

MFG Engineer A manufacturing engineer who supports • Creates and maintains bills of materials
the shop floor • Initiates engineering change requests
and executes engineering change or-
ders
• Suggests cost-effective alternate
processes and materials when possible
 Implementing Manufacturing | 469

Role Name Description Responsibilities

MFG Engineering A manager of manufacturing engineers • Sets preferences related to engineering

MGR who sets up engineering change control • Creates and maintains bills of material
and monitors changes in bills of material (except creating labor codes, overhead,
and shis)
• Handles mass changes and cost rolling

MFG Shop Floor A shop floor worker whose time is typically • Performs the manufacturing of items
value-added • Clocks in and out of jobs
• Views work center schedules and pro-
duction dashboards

MFG Production MGR A manufacturing production manager who • Works with planning, scheduling, engi-
resolves problems for the shop floor and neering, and warehouse personnel to
ensures that production is moving along resolve problems
• Creates and changes production orders
• Approves clock entries of production
workers
• Specifies production settings (except la-
bor codes)

MFG Scheduler A manufacturing scheduler who sets up • Identifies and resolves scheduling con-
and reviews the production schedule; this flicts in advance
person also adjusts constraints and com- • Has the primary KPI to keep the on-time
municates completion dates delivery percent high
• Uses material requirement planning
tools
• Regenerates material requirements
planning
• Runs rough-cut planning

MFG Scheduling A manufacturing scheduling manager who • Sets the preferences for scheduling
MGR defines the scheduling methodology and • Maintains advanced planning and
monitors the scheduling and planning scheduling
process
• Works closely with the planner and the
production manager to make sure the
planning, production, and scheduling
areas align
• Regenerates material requirements
planning
• Runs rough-cut planning

MFG Planner A manufacturing planner who regularly • Uses statistical analysis to suggest
evaluates the requirements needed to suc- stocking levels for raw materials, se-
cessfully execute both customer- and re- mi-finished goods, and finished goods
plenishment-driven production orders • Makes recommendations on staffing
levels based on trends and data
• Generates and manages forecasts
 Implementing Manufacturing | 470

Role Name Description Responsibilities

MFG Planning MGR A manufacturing planning manager who • Uses statistical analysis to suggest
develops production plans in adherence to stocking levels for raw materials, se-
the organization's budget and deadlines mi-finished goods, and finished goods
• Makes recommendations on staffing
levels based on trends and data
• Generates and manages forecasts
• Uses master production schedules for
planning

MFG Sales Engineer A manufacturing sales engineer who works • Takes customer requirements and ap-
closely with sales or independently plies information to an estimate
• Has a primary key performance indica-
tor (KPI) of an estimate or request for
quotation (RFQ) turnaround time
• Has secondary KPIs of winning percent
and profitability percent
• Uses estimating functionality (except
for preferences)
• Creates inventory items from non-in-
ventory items
• Converts estimates to bills of material

MFG Warehouse A manufacturing warehouse worker who • Primarily performs cycle counts, picking
supports production of material, and moving of items in pro-
duction from one location to another
• Helps place material on shelves
• Issues materials to production orders
• Supports the traceability of items by lot
or serial number

MFG Viewer An employee outside of the production de- • Tracks the progress of production or-
partment who needs to view manufactur- ders to inform customers
ing processes, monitoring milestones and • Tracks the progress of production for
the statuses of specific production orders projects

MFG Admin A manufacturing administrator; this person Maintains and oversees all manufacturing
may be a production manager or an em- settings
ployee of an IT department

The following forms and reports show details about access to forms:
• Access Rights by Role (SM201025)
• Access Rights by Screen (SM201020)
• Access Rights by Role (SM651500)
 Implementing Manufacturing | 471

System Preparation for Manufacturing Implementation: General Ledger Accounts

These are the accounts, and if configured, subaccounts used on the manufacturing forms specified directly or
indirectly.

General Ledger Accounts Used in Manufacturing

The work in process (WIP) account and subaccount and the WIP Variance account and subaccount are required in
order to create production orders and are specified on the Posting Classes (IN206000) form or if not used, then on
the Production Preferences (AM102000) form. The Work in Progress account should be of the Asset type and the WIP
Variance should be of the Expense type. This account should not be used as an inventory or expense account in
order to be able to balance the account in the Work in Process (AM654000) report.
Transactions for production orders debit the work in process account and credit the offset account for each cost
element. A reversing transaction does the opposite. Upon closing a production order the WIP Variance account is
posted and the WIP Balance is zeroed and the appropriate debit and credit generated.

At this time the Control Account validation feature is not supported when specifying the accounts on
manufacturing forms.

If production scrap will be reported and expensed, then you need to specify the appropriate reason codes on the
Reason Codes (CS211000) form with their GL accounts for the scrap expense. For more details, see Configuration
of Scrap, Waste, and By-Products in Production: General InformationConfiguration of Scrap and Waste in Production:
General Information.

Labor codes must also be set up by using the Labor Codes (AM206500) form. Labor codes are required when setting
up work centers on the Work Centers (AM207000) form. If indirect time will be reported, then an indirect labor
account is also required or you may use the same account as for direct labor.
If overhead, tooling, or machine costs are to be charged to production orders then each requires an offset account
to be defined on the following forms:
• Overhead (AM202500)
• Tools (AM205500)
• Machines (AM204500)

You need to consider the impact of posting to the non-inventory accounts (labor, overhead, machines,
and tooling) in production management. Typically, the actual manufacturing expenses such payroll
and benefits, utilities, depreciation, purchased tooling, repairs and maintenance, etc. are posted to
the General Ledger into cost of sales accounts. The labor, overhead, tools, and/or machine accounts
could be set up as balance sheet accrual accounts or income statement contra expense accounts that
would be debited to zero when posting the actual costs.

In the following table, you can view the list of GL accounts used in manufacturing.

Category Debit Account Credit Account

Bill of Material

Direct Labor (WIP Account) Labor Account

Indirect Indirect Labor Expense Labor Account

 Implementing Manufacturing | 472

Category Debit Account Credit Account

Overhead (WIP Account) Overhead Account

Tools (WIP Account) Tooling Account

Machine (WIP Account) Machine Account

Production Management

Work in Process WIP Account (Inventory) or expense

WIP Variance WIP Variance WIP Account

The Inventory account and subaccount is copied from the stock item's Inventory account when
material is issued or received; if the item issued is non-stock, then the Expense Accrual account is
used. Labor expense is copied from the account and subaccount specified for the labor code; other
costs that are automatically calculated such as overhead, tooling, or machine costs, use the expense
account specified. If labor is backflushed, then the labor expense account is copied from the labor
code associated with the first shi code of the work center specified on the Work Centers (AM207000)
form.

System Preparation for Manufacturing Implementation: Implementation Checklist

The following section provides details you can use to ensure that the system is configured properly for
implementing manufacturing.

Implementation Checklist
We recommend that before you start configuring manufacturing-specific settings, you make sure the needed
features have been enabled, settings have been specified, and entities have been created, as summarized in the
following checklist.

Form Criteria to Check

Enable/Disable Features (CS100000) The following features have been enabled:

• The Manufacturing group of features. If you use ad-
ditional manufacturing functionality (such as esti-
mates), make sure that the corresponding features
have been enabled within this group of features.
• The Inventory feature within the Inventory and Or-
der Management group of features.
 Implementing Manufacturing | 473

Form Criteria to Check

Numbering Sequences (CS201010) Numbering sequences have been created for the fol-
lowing:
• Bill of material (required)
• Production order (required)
• Batches of move transactions (required)
• Batches of labor transactions (required)
• Batches of material transactions (required)
• Batches of WIP adjustment transactions (required)
• Batches of cost transactions (required)
• Forecast (required)
• MPS type (required)

You can use the same numbering se-

quence for the batches of move, labor,
and material transactions.

Companies (CS101500) The number of decimal places for quantities in the

Quantity Decimal Places box and for prices and costs
in the Price/Cost Decimal Places box of the Compa-
ny Details tab is specified according to the business
processes of your organization.

Chart of Accounts (GL202500) The following GL accounts have been created:

• Work in Progress (required)
• WIP Variance (required)
• Direct Labor (required)
• Indirect Labor
• Overhead
• Tooling Usage
• Machine Usage
• Scrap Expense

Posting Classes (IN206000) Posting classes to be used for the inventory items in-
volved in manufacturing have been created, and the
Work in Progress and WIP Variance accounts have
been specified in the posting class settings.

Availability Calculation Rules (IN201500) Availability calculation rules have been created for the
stock items to be involved in manufacturing.
 Implementing Manufacturing | 474

Form Criteria to Check

Replenishment Classes (IN208800) If the Inventory Replenishment feature (in the Inven-
tory and Order Management group of features) is en-
abled on the Enable/Disable Features (CS100000) form,
the replenishment classes that will be used for items in
manufacturing processes have been created. At least
two classes must be created, one with the Manufac-
turing replenishment source (for items being manu-
factured) and one with the Purchase replenishment
source (for items being purchased).

Item Classes (IN201000) The item classes that will provide the default settings
for the newly created stock items involved in manufac-
turing have been created.

If the Inventory Replenishment feature is

disabled on the Enable/Disable Features
form, specify the replenishment source
for the items of the class in the Replen-
ishment Source box of the General tab.

Stock Items (IN202500) Stock items to be used in manufacturing have been

created—both the components and the items to be
produced.

Warehouses (IN204000) The needed warehouses and warehouse locations that

will be involved in manufacturing have been defined.

• For warehouses that are not involved

in manufacturing, on the Manufac-
turing tab, clear all the check boxes in
the General section.
• For warehouse locations that are not
involved in manufacturing, on the Lo-
cations tab, clear the check box in the
MRP column.

Item Warehouse Details (IN204500) For items involved in manufacturing that can be stored
in multiple warehouses, all applicable item settings
have been specified that are specific to a particular
warehouse, such as the replenishment source, cost in-
formation, and default warehouse locations for receiv-
ing and issuing items.

Employees (EP203000) The Production Employee check box is selected for

each employee for which labor may be entered in a
production order.

Order Types (SO201000) Sales order types have been configured that will be
used for production management so that users can
create production orders from orders of this type.
 Implementing Manufacturing | 475

Form Criteria to Check

User Roles (SM201005) The appropriate user roles have been configured and
assigned to users who must have access to manufac-
turing functionality.

System Preparation for Manufacturing Implementation: Implementation Activity

In this implementation activity, you will learn how to prepare the system for specifying manufacturing-specific
settings.

This activity is based on the U100 dataset. If you are using another dataset, or if any system settings
have been changed in U100, these changes can affect the workflow of the activity and the results of
the processing. To avoid any issues, restore the U100 dataset to its initial state.

Story
Suppose that based on requests from customers, SweetLife Fruits & Jams has decided to assemble customized
juicers. The company has organized a work center where workers assemble juicers from parts bought from the
Sqeezo Inc. vendor.
As an implementation manager, you need to prepare the system for the specification of manufacturing-specific
settings.

Process Overview
In this activity, to prepare the system for the implementation of manufacturing functionality, you will do the
following:
1. On the Numbering Sequences (CS201010) form, you will make sure that the numbering sequences for
manufacturing batches and entities have been created.
2. On the Chart of Accounts (GL202500) form, you will make sure that the GL accounts required for the
manufacturing processes have been created.
3. On the Posting Classes (IN206000) form, you will make sure that a posting class that will provide posting
settings to the items involved in manufacturing has been created.
4. On the Warehouses (IN204000) form, you will make sure that the warehouse and locations to be involved in
manufacturing have been created and defined properly.
5. On the Availability Calculation Rules (IN201500) form, you will make sure that the availability calculation rule
that will be used for calculating availability of items involved in manufacturing has been created.
6. On the Replenishment Classes (IN208800) form, you will make sure that the replenishment class for items
being manufactured has been created.
7. On the Item Classes (IN201000) form, you will make sure that the item classes that will provide default
settings for items involved in manufacturing have been created and defined properly.
8. On the Stock Items (IN202500) form, you will create a stock item for a juicer, which will be assembled.
9. On the Stock Items (IN202500) form, you will create a stock item for a juicer part, which will be purchased.
10.On the Employees (EP203000) form, you will specify the appropriate setting for an employee that will be
involved in manufacturing.
 Implementing Manufacturing | 476

11.On the Order Types (SO201000) form, you will review the settings of the SO order type and configure the TR
and QT order types, which will be involved in the manufacturing processes.
12.On the BOM Preferences (AM101000) form, you will review the basic settings related to bills of material.
13.On the Production Preferences (AM102000) form, you will review the basic settings related to production
management.

System Preparation
Before you start specifying the general settings to prepare the system for manufacturing implementation, you
perform the following instructions:
1. Sign in to a company with the U100 dataset preloaded; you need to sign in as a system administrator with
the gibbs username and 123 password.
2. On the Enable/Disable Features (CS100000) form, enable the following features:
• Manufacturing
• Material Requirements Planning
• Product Configurator
• Estimating
• Advanced Planning and Scheduling
• Engineering Change Control
• Manufacturing Data Collection

Step 1: Reviewing Numbering Sequences

In a production system, you would need to create all of the numbering sequences that will be used in the system
for manufacturing batches and entity identifiers. These numbering sequences have been defined in the U100
dataset for simplicity; you will verify that they have been created and review the settings of one of the numbering
sequences. Do the following:
1. Open the Numbering Sequences (CS201010) form.
2. In the Numbering ID box of the Summary area, click the selector button.
3. In the lookup table that opens, make sure that the following predefined numbering sequences exist in the
list:
• AMBATCH
• AMBOM
• AMCOST
• AMCTP
• AMDIS
• AMECO
• AMECR
• AMEST
• AMFCST
• AMMATL
• AMMPS
• AMPLAN
• AMPROD
• AMVSHIP
 Implementing Manufacturing | 477

• AMWIP
4. Select AMBOM (which is the numbering sequence created for numbering bills of material), and review its
settings as follows:
a. In the Summary area, make sure that the Manual Numbering check box is cleared, which means that
bills of material will be numbered automatically.
b. Make sure that BOM000001 is specified in the Start Number column of the only row, which is the number
of the first bill of material.

These numbering sequences will be specified on the appropriate forms so that they can be used during the
manufacturing processes.

Step 2: Reviewing the GL Accounts

In a production system, you would need to create the GL accounts that will be used in manufacturing; these
accounts have been predefined in the U100 dataset for simplicity. In this step, you will verify that these accounts
have been created. Do the following:
1. Open the Chart of Accounts (GL202500) form.
2. Make sure that the following accounts are listed in the table:
• 12500, Work in Progress for Manufacturing
• 51000, Accrued COGS - Direct Labor Costs
• 51050, Accrued COGS - Fixed Overhead Costs
• 51060, Accrued COGS - Fixed Machine Costs
• 51070, Accrued COGS - Fixed Tool Costs
• 51100, Accrued COGS - Indirect Labor Costs
• 51150, Accrued COGS - Variable Overhead Costs
• 51500, COGS - WIP Inventory Variance
• 51600, COGS - Scrap Expense
These accounts will be specified on the appropriate forms so that the accounts can be used during the
manufacturing processes.

Step 3: Reviewing a Posting Class

In a production system, you would need to create the posting class that will be used in manufacturing. This posting
class has been predefined in the U100 dataset for simplicity. In this step, you will verify that this posting class has
been created as follows:
1. Open the Posting Classes (IN206000) form.
2. In the Class ID box of the Summary area, select MFGI.
3. On the General tab, make sure that Posting Class is selected in the Use WIP Account From and Use WIP
Variance Account From boxes. This means that the system will copy these accounts from the posting class,
and the accounts can be changed on the item level if necessary.
4. On the GL Accounts tab, make sure that in the Work in Process Account box, 12500 - Work in Progress for
Manufacturing is selected.
5. In the WIP Variance Account box, make sure that 51500 - COGS - WIP Inventory Variance is selected.

Step 4: Reviewing Warehouse and Location Settings

In a production system, you would need to create a warehouse and its locations that will be dedicated to
manufacturing or specify manufacturing-related settings for an existing warehouse and its locations. In the U100
 Implementing Manufacturing | 478

dataset, a separate warehouse has been created and all required settings have been specified. In this step, you
will review the settings for this predefined warehouse and its locations and for a warehouse that is not involved in
manufacturing. Do the following:
1. Open the Warehouses (IN204000) form.
2. In the Warehouse ID box of the Summary area, select WORKHOUSE.
3. In the Branch box, make sure that SWEETEQUIP is selected.
4. On the Locations tab, do the following:
a. In the row with the MTL location (which will be used for storing materials), make sure that the following
check boxes are selected:
• Include in Qty. Available
• Sales Allowed
• Receipts Allowed
• Production Allowed
• Transfers Allowed
• MRP
b. In the row with the MGI location (which will be used for storing manufactured items), make sure that the
following check boxes are selected:
• Include in Qty. Available
• Sales Allowed
• Receipts Allowed
• Production Allowed
• Transfers Allowed
• MRP
c. In the row with the DMTL location (which will be used for storing defective materials), make sure that the
following check boxes are selected:
• Receipts Allowed
• Transfers Allowed
5. On the GL Accounts tab, do the following:
a. Make sure that in the Work in Process Account box, the 12500 - Work in Progress for Manufacturing
account is selected.
b. In the WIP Variance Account box, make sure that the 51500 - COGS - WIP Inventory Variance account is
selected.
6. On the Manufacturing tab, make sure that all check boxes are selected in the MRP Settings section.
7. In the Warehouse ID box of the Summary area, select EQUIPHOUSE (this warehouse is not involved in
manufacturing).
8. On the Locations tab, make sure that the check box in the MRP column is cleared for all rows.
9. On the Manufacturing tab, make sure that all check boxes are cleared in the General section.
The WHOLESALE and RETAIL warehouses have similar settings to those specified for EQUIPHOUSE, because
they too are not involved in manufacturing.

Step 5: Reviewing Availability Calculation Rules

In a production system, you would need to create an availability calculation rule that will include additional
settings related to documents used in the manufacturing processes. This availability calculation rule has been
predefined in the U100 dataset for simplicity. In this step, you will review settings of the rule. Do the following:
 Implementing Manufacturing | 479

1. On the Availability Calculation Rules (IN201500) form, open the MFGITEMS rule.
2. Make sure that the following check boxes are selected:
• Deduct Qty. on Issues
• Deduct Qty. on Sales Orders
• Deduct Qty. Shipped
• Deduct Qty. Allocated
• Deduct Qty. on Back Orders
• Deduct Qty. on Production Demand Prepared
• Deduct Qty. on Production Demand
• Deduct Qty. on Production Allocated
• Include Qty. on Receipts
• Include Qty. on PO Receipts
With these settings, the quantities of items that are issued, shipped, added to sales orders, allocated to
sales orders, added to back orders, and allocated to production orders will be deducted from the available
quantity; the quantities of items that are included in inventory and PO receipts will be added to the
available quantity.

Step 6: Reviewing Replenishment Classes

If in a production system the Inventory Replenishment feature is enabled on the Enable/Disable Features (CS100000)
form, you would need to create replenishment classes that will be used for items being manufactured. These
replenishment classes have been predefined in the U100 dataset for simplicity. In this step, you will review the
settings of the replenishment classes. Do the following:
1. Open the Replenishment Classes (IN208800) form.
2. Make sure that the class with the Manufacturing replenishment source in the Replenishment Source
column is displayed in the table. This class will be used for items to be manufactured.
3. Make sure that the class with the Purchase replenishment source is displayed in the table. This
replenishment class will be used for items to be purchased.

Step 7: Reviewing Item Classes

In a production system, you would need to create one or multiple item classes that will provide default settings
to newly created items involved in manufacturing. Two item classes have been predefined in the U100 dataset for
simplicity. In this step, you will review settings of the item classes. Do the following:
1. Open the Item Classes (IN201000) form.
2. In the Item Class Tree of the le pane, select JUICERCFG. This item class provides default settings for new
configurable juicer items.
3. On the General tab, do the following:
a. In the General Settings section, make sure that the Stock Item check box is selected.
b. In the Posting Class box, make sure that MFGI is selected.
c. In the Default Warehouse box, make sure that WORKHOUSE is selected.
d. In the Availability Calculation Rule box, make sure that MFGITEMS is selected.
e. In the Unit of Measure section, make sure that the Divisible Unit check boxes are cleared. This means
that the system will operate with only integer quantities of items in transactions and documents.
4. On the Replenishment tab, make sure that a row with the PRODUCTION replenishment class has been
added.
 Implementing Manufacturing | 480

This indicates that items of the class will be manufactured.

5. In the Item Class Tree, select JCRCFGPRT. This item class provides default settings for new part items for
configurable juicers.
6. On the General tab, do the following:
a. In the General Settings section, make sure that the Stock Item check box is selected.
b. In the Posting Class box, make sure that MFGI is selected.
c. In the Default Warehouse box, make sure that WORKHOUSE is selected.
d. In the Availability Calculation Rule box, make sure that MFGITEMS is selected.
e. In the Unit of Measure section, make sure that the Divisible Unit check boxes are cleared. This means
that the system will operate with only integer quantities of items in transactions and documents.
7. On the Replenishment tab, make sure that the row with the PURCHASE replenishment class has been
added.
This indicates that items of the class will be purchased.

Step 8: Creating a Stock Item Being Manufactured

You will create a stock item for a juicer that makes juice from so fruits and berries. Do the following:
1. On the Stock Items (IN202500) form, add a new record.

To open the form for creating a new record, type the form ID in the Search box, and on the
Search form, point at the form title and click New right of the title.

2. In the Inventory ID box of the Summary area, type CFJSOFT.

3. In the Description box, type A configurable juicer for soft fruit, vegetables, and
berries.
4. In the Item Class box of the General tab (Item Defaults section), select JUICERCFG. The system copies the
settings of the item class into the following boxes of the section:
• Type: Finished Good
• Valuation Method: Average
• Posting Class: MFGI
• Default Warehouse: WORKHOUSE
5. On the Replenishment tab, make sure that the row with the PRODUCTION replenishment class has been
copied from the item class.
6. On the Manufacturing tab, specify the following:
a. In the Dflt Mark For box of the General section, select Production.
b. Select the Make to Order Item check box.
c. Make sure that the MRP Item check box is selected.
d. In the Planning Settings section, make sure that Manufacturing is selected in the Source box.
e. In the Scheduling section, make sure that the Check for Material Availability check box is selected.
7. On the form toolbar, click Save.

Step 9: Creating a Stock Item for a Component Being Purchased

You will create a stock item for a component of a configurable juicer: a grating disc with medium peeling, which will
be purchased from the Sqeezo Inc. vendor. Do the following on the Stock Items (IN202500) form, which is still open:
 Implementing Manufacturing | 481

1. On the form toolbar, click Add New Record.

2. In the Inventory ID box of the Summary area, type GRDISC03.
3. In the Description box, type Grating disc for medium peeling (for configurable
juicers).
4. In the Item Class box on the General tab (Item Defaults section), select JCRCFGPRT. The system copies the
settings of the item class into the following boxes of the section:
• Type: Finished Good
• Valuation Method: Average
• Posting Class: MFGI
• Default Warehouse: WORKHOUSE
5. In the Default Issue From box of the Warehouse Defaults section, select MTL (which is the location where
components for juicers will be stored).
6. In the Default Receipt To box, select MTL.
7. On the Vendors tab, do the following:
a. On the table toolbar, click Add Row.
b. In the Vendor ID column of the row, select JALOOZA.
c. Make sure that the lead time is specified in the Lead Time (Days) column.
8. On the Warehouses tab, make sure that a row for WORKHOUSE has been added.
9. In the Last Cost box on the Price/Cost tab (Cost Statistics section), type 39.90.
10.On the form toolbar, click Save.

Step 10: Selecting Employees Involved in Production

Three employees will be involved in juicer assembly: two workers and one manager. You will mark one of these
employees, Carlos Cruz, as being involved in production. Do the following:
1. On the Employees (EP203000) form, open the EP00000027 – Carlos Cruz employee.
2. In the Employee Settings section of the General Info tab, select Production Employee check box.
3. On the form toolbar, click Save.

For the other two employees, Casey Burrows and Gladys Peters, the Production Employee check box has already
been selected.

Step 11: Configuring Sales Order Types

You will review the settings of the SO order type and configure the TR and QT order types, which will be used in the
manufacturing processes. Do the following:
1. On the Order Types (SO201000) form, open the SO type.
2. In the Manufacturing Settings section of the General tab, make sure that the following check boxes are
selected:
• Allow Production Orders - Approved
• Allow Production Orders - Hold
• MTO Order
3. In the Order Type box, select TR.
4. In the Manufacturing Settings section of the General tab, select the following check boxes:
• Allow Production Orders - Approved
 Implementing Manufacturing | 482

• Allow Production Orders - Hold

• MTO Order
5. On the form toolbar, click Save.
6. In the Order Type box, select QT.
7. In the Manufacturing Settings section of the General tab, select the Allow Estimating check box.
8. On the form toolbar, click Save.

Step 12: Reviewing Bill of Material Preferences

In a production system, you would need to specify the basic settings related to bills of material to be able to start
implementation of the manufacturing processes. These settings have been predefined in the U100 dataset for
simplicity. In this step, you will review the bill of material settings. Do the following:
1. Open the BOM Preferences (AM101000) form.
2. On the General tab, review the settings as follows:
a. In the BOM Numbering Sequence box, make sure that AMBOM is specified. The system will use this
numbering sequence for bill of material identifiers when you create a bill of material on the Bill of
Material (AM208000) form.
b. In the Default Revision box, make sure that A is specified. The system will copy this value when you
create a bill of material on the Bill of Material form.

Step 13: Reviewing Production Preferences

In a production system, you would need to specify the basic settings related to production management to be able
to start implementation of the manufacturing processes. These settings have been predefined in the U100 dataset
for simplicity. In this step, you will review the production settings. Do the following:
1. Open the Production Preferences (AM102000) form.
2. In the Numbering Settings section of the General tab, make sure that the following has been specified:
• Move Numbering Sequence: AMBATCH
• Labor Numbering Sequence: AMBATCH
• Material Numbering Sequence: AMBATCH
• WIP Adjust Numbering Sequence: AMWIP
• Cost Numbering Sequence: AMCOST
You have prepared the system for the implementation of manufacturing functionality.

Implementing Bills of Material: General Process

The primary entity defined in Acumatica ERP Manufacturing Edition is a bill of material that contains the details
of the process of producing a particular stock item. The bill of material includes the operations involved in
production, the materials used in the operations, the more detailed steps of the operations, and the factors that
must be included in cost of the finished goods.
In this topic, you will find information about the general process of implementing bills of material in Acumatica
ERP Manufacturing Edition. You can also find the implementation checklist for bills of material in Bills of Material:
Implementation Checklist.
 Implementing Manufacturing | 483

Manufacturing Entities to Be Created

You need to create the following entities before users can start processing production transactions in Acumatica
ERP Manufacturing Edition:
1. Production cost drivers (for more information, see Production Cost Drivers: General Information): You create
any of the following entities whose costs will be included in the cost of the final product:
• Labor codes on the Labor Codes (AM206500) form, which provide information about direct and indirect
labor costs; you specify labor codes when you create a work center.
• Overhead rates on the Overhead (AM202500) form; you specify overhead entities when you create a work
center, a bill of material, or both of these.
• Cost rates for tools involved in production, on the Tools (AM205500) form; you specify tool entities when
you create a bill of material.
• Cost rates for machines used in production, on the Machines (AM204500) form; you specify machine
entities when you create a work center.
• Material costs on the Stock Items (IN202500) form (if the material is a stock item) or Non-Stock Items
(IN202000) form (if the material is a non-stock item); these costs are calculated automatically when
production transactions are processed in the system.
2. Work centers (described in detail in Work Centers: General Information): In addition to the production cost
drivers mentioned above as being specified for a work center, you need to create the following entities
before you create any work centers on the Work Centers (AM207000) form:
• Work calendars on the Work Calendar (CS209000) form
• Shis on the Shifts (AM205000) form
3. Bills of material (described further in Bills of Material: General Information): You create bills of material on the
Bill of Material (AM208000) form.

Thus, the order in which you create entities is important, because some entities derive settings from other entities
or use them in other ways. You first create the entities that provide cost rates (materials, tools, overhead, labor
codes, and machines) in any order; you then create shis and work calendars. Aer that, you create work centers,
and finally, you create a bill of material. (See the following diagram.)

Figure: The order in which you create manufacturing entities

 Implementing Manufacturing | 484

Configuring Production Order Types

When you configure Acumatica ERP Manufacturing Edition, you need to specify the default settings for production
orders, such as in which workflow an order is involved (production, planning, or disassembly) and how the cost
of produced items should be calculated. These settings are provided through the use of production order types,
which are described in detail in this chapter.

Production Order Types: General Information

In Acumatica ERP Manufacturing Edition, a production order type provides default settings for production orders of
the type and determines the workflow for these production orders. You use the Production Order Types (AM201100)
form to create production order types, which are described further in this topic.

Learning Objectives
In this chapter, you will learn how to create a production order type for each of the following categories of
production orders: regular, planning, and disassembly.

Applicable Scenarios
You configure production order types in any of the following cases:
• When you initially implement Acumatica ERP and the Manufacturing feature, which is enabled on the
Enable/Disable Features (CS100000) form, is included in your license
• When you have purchased the Manufacturing feature, and you need to configure manufacturing in the
existing Acumatica ERP system
• When you need to add new production order types or change the settings of existing order types to
accommodate business process changes

Settings of Production Order Types

When you create a production order type, you specify the following settings for it on the Production Order Types
(AM201100) form:
• The function of production orders of the type, which determines the workflow
• The Work in Process and WIP Variance GL accounts
• The cost calculation methods for produced items in production orders of the type
• The scrap settings to be used for production orders of the type
• The settings of data entry validation that apply to orders of the type
• The attributes that users specify for production orders of the type
The settings of a production order type are inserted or used when a new production order is created on the
Production Order Maintenance (AM201500) form and the type is selected in the Order Type box.

You cannot change the order type in a production order once the order has been created.

In the following sections, you will find detailed information about the settings of a production order type.
 Implementing Manufacturing | 485

Functions of Production Order Types

The workflow of a production order in the system depends on the function specified in the production order type
assigned to the production order. The following functions are available in the Function box of the Production Order
Types (AM201100) form:

• Regular: The production order is used to produce items.

You can specify a default order type with this function in the Default Order Type box of the Production
Preferences (AM102000) form. If you do, when a new production order is created on the Production Order
Maintenance (AM201500) form and the Regular function is selected, this production order type is inserted, as
are its default settings.
• Planning: The production order is used for planning purposes, such as reserving materials and capacity.
Processing of an order with this function does not generate transactions, such as issue of materials or labor.
The MRP regeneration process on the Regenerate MRP (AM505000) form also uses orders with this function,
but these orders do not reserve materials and capacity.
You can specify the default planning order type in the Plan Order Type box on the MRP Preferences
(AM100000) form. If you do, when a new production order is created on the Production Order Maintenance
(AM201500) form and the Planning function is selected, this production order type is inserted, as are its
default settings.
• Disassemble: The production order is used to disassemble items.
You can specify the default disassembly order type in the Default Disassemble Order Type box on the
Production Preferences form. If you do, when a new production order is created on the Production Order
Maintenance (AM201500) form and the Disassemble function is selected, this production order type is
inserted, as are its default settings.
You can create as many production order types as you need but you must create at least one Regular order type
and one Planning order type.

GL Accounts for Production Order Types

In each production order type, you can select a specific Work in Progress and WIP Variance GL accounts in the Work
in Process Account and WIP Variance Account boxes on the Production Order Types (AM201100) form accordingly.
The system uses these GL accounts for posting amounts only if the accounts are not specified in posting classes
assigned to the stock items that are included in the production order of this type.

Cost Calculation for Produced Items

In the Costing Method box of the Production Order Types (AM201100) form, you specify the costing method to
be used for production orders of the type. The costing method determines how the cost of produced items is
calculated for items with the Average, FIFO, or Specific valuation methods. You can select one of the following
costing methods:
• Actual: The actual balance of the Work in Process GL account is used to calculate the cost. This method
is always used for disassembly orders. For other order types, we recommend that you use it only if you
can ensure that during production processing, all materials and labor have been issued before the last
operation move.
• Estimated: Actual and planned costs are combined during the cost calculation. We recommend that you use
this method when material and labor transactions are not always reported before the inventory is receipted
from the production order. This method is recommended for all regular and planning orders.
For production orders that include items with the Standard valuation method, the system specifies the Standard
costing method, regardless of the costing method specified for the production order type assigned to the
production order, and a user cannot change the costing method for the production order.
 Implementing Manufacturing | 486

Before you select the costing method for a production order type, we recommend that you read
detailed information about costing methods in Production Processing: Cost Calculation.

Data Entry Validation on Production Orders

A production order type provides settings that will help users minimize errors when they enter data to a production
order assigned to this type; that is, the system can validate whether the appropriate quantity of items used as
materials is specified in the production order and whether the production order has the appropriate status. You
specify these settings in the Data Entry Settings section of the Production Order Types (AM201100) form.

Attributes of Production Orders

For a production order type, you can specify attributes for orders of the type, which may be informational or can
require data entry. You first define the needed attributes on the Attributes (CS205000) form (if they do not already
exist) and then add the attributes to the Attributes tab of the Production Order Types (AM201100) form.
The system can capture the values for the attributes from production attributes when a user reports production.
These attributes are in addition to the attributes specified for the bill of material used to create the production
order and the attributes used in the product configurator.

Production Order Types: Implementation Checklist

The following sections provide details you can use to ensure that the system is configured properly for creating
production order types, and to understand (and change, if needed) the minimum required settings of a production
order type.

The Needed Feature Enablement

You should make sure the Manufacturing feature has been enabled on the Enable/Disable Features (CS100000) form.

System Configuration
You need to make sure the following tasks have been performed in Acumatica ERP before you begin to create
production order types:
• On the Chart of Accounts (GL202500) form, the Work in Process and WIP Variance GL accounts have been
created.
• On the Numbering Sequences (CS201010) form, at least one numbering sequence for production orders has
been created.

We recommend that you create a separate numbering sequence for planning orders on the
Numbering Sequences (CS201010) form to distinguish them from regular production orders.

• On the BOM Preferences (AM101000) form, the system settings for bills of material have been specified.
• On the Production Preferences (AM102000) form, the numbering sequences for WIP adjustments, move,
material, labor, and cost transactions have been specified.
For more information on configuring the system before you start to create order types, see System Preparation for
Manufacturing Implementation: General Information.
 Implementing Manufacturing | 487

Minimum Required Settings

For each production order type that you are going to use, you should specify the following minimum settings to
configure and activate the order type on the Production Order Types (AM201100) form.

Location on the Form Settings to Specify

Summary area • The Active check box, indicating that the produc-
tion order type is available for use, is selected.
• The Function, which determines the workflow of
production orders of this type, is selected.

General tab • The Order Numbering Sequence, which is the se-

quence to be used to assign order reference num-
bers, is specified.
• The Work in Process Account, which is the account
for posting item costs until the production order is
closed, is specified.
• The WIP Variance Account, which is the account
for posting a difference between the cost of the
produced item recorded to the Work in Progress ac-
count and the final cost of the produced item in the
completed production order, is specified.
• The Costing Method, which is the method for cal-
culating item costs produced by using the produc-
tion orders of the type, is selected.

Recommended Settings
We recommend that you specify the following on the Production Preferences (AM102000) form when you have
created production order types for regular and disassembly orders:

Location on the Form Settings to Specify

Data Entry Settings section of the General tab • In the Default Order Type box, the production or-
der type that will be used by the system by default
for regular production orders is specified.
• In the Default Disassemble Order Type box, the
production order type that will be used by the sys-
tem by default for disassembly orders is specified.

Production Order Types: To Create a Regular Production Order Type

In this implementation activity, you will learn how to create a production order type for regular production orders.
 Implementing Manufacturing | 488

Story
Suppose that you are an implementation manager who needs to define production orders that will be used for
producing items. You need to create the production order type that will generally provide the settings for these
production orders, and define it as the default type for the orders.

Configuration Overview
The following entities, which you will use in this activity, have been predefined in the U100 dataset:
• On the Numbering Sequences (CS201010) form, the AMPROD numbering sequence
• On the Chart of Accounts (GL202500) form, the 12500 - Work in Progress for Manufacturing and 51500 - COGS -
WIP Inventory Variance GL accounts

Process Overview
On the Production Order Types (AM201100) form, you will create an order type for regular production orders. Then
on the Production Preferences (AM102000) form, you will specify this order type as the default order type for orders
used for item production.

System Preparation
Before you start creating the order type, do the following:
1. As a prerequisite to the current activity, complete System Preparation for Manufacturing Implementation:
Implementation Activity so that the needed settings have been made in a company with the U100 dataset
preloaded.
2. Sign in to this company (in which the prerequisite activity has been performed) as a system administrator
with the gibbs username and 123 password.
3. Make sure that the Manufacturing feature has been enabled on the Enable/Disable Features (CS100000)
form.

Step 1: Creating the Regular Production Order Type

To create the production order type for the regular production of items, do the following:
1. On the Production Order Types (AM201100) form, add a new record.

To open the form for creating a new record, type the form ID in the Search box, and on the
Search form, point at the form title and click New right of the title.

2. In the Summary area, specify the following settings:

a. Order Type: RO
b. Active: Selected
c. Description: Regular production orders
d. Function: Regular
3. On the General tab, do the following:
a. In the Order Numbering Sequence box of the Numbering Settings section, select AMPROD.
b. In the Account Settings section, select the following accounts:
• Work in Process Account: 12500
 Implementing Manufacturing | 489

• WIP Variance Account: 51500

c. In the Costing Method box of the Order Defaults section, select Estimated.
d. In the Copy BOM Notes section, select all the check boxes so that the system copies the notes to
production orders of the type.
e. In the Data Entry Settings section, specify the following settings:
• Under Issue Material: Warn
• Under Issue Backflush Material: Do Not Allow
• Over Issue Material: Warn
• Include Unreleased Batch Qty.: Selected
• Issue Material Not on Order: Warn
• Move on Completed Operations: Warn
• Exceeding Qty. for Operations: Warn
• Exceeding Qty. for Orders: Warn
• Default Operation Move Qty.: Selected
4. On the form toolbar, click Save.

Step 2: Specifying the Default Production Order Type in Preferences

Because you have created an order type for regular production orders, you will specify this type as the default type
for these orders in the production settings. Do the following:
1. Open the Production Preferences (AM102000) form.
2. In the Default Order Type box of the General tab (Data Entry Settings section), select RO.
3. On the form toolbar, click Save.

You have successfully created the production order type for the regular production of items and specified it as the
default order type in the production settings.

Production Order Types: To Create a Planning Production Order Type

In this implementation activity, you will learn how to create a production order type for production orders that will
be used for planning.

Story
Suppose that you are an implementation manager who needs to define production orders that will be used to plan
production. You need to create the order type that will generally provide the settings for these production orders,
and define it as the default type for the orders.

Configuration Overview
The following entities, which you will use in this activity, have been predefined in the U100 dataset:
• On the Numbering Sequences (CS201010) form, the AMPLAN numbering sequence
• On the Chart of Accounts (GL202500) form, the 12500 - Work in Progress for Manufacturing and 51500 - COGS -
WIP Inventory Variance GL accounts
 Implementing Manufacturing | 490

Process Overview
On the Production Order Types (AM201100) form, you will create an order type for planning orders. Then on the MRP
Preferences (AM100000) form, you will specify this order type as the default order type for orders used for planning.

System Preparation
Before you start creating the order type, do the following:
1. As a prerequisite to the current activity, complete System Preparation for Manufacturing Implementation:
Implementation Activity so that the needed settings have been made in a company with the U100 dataset
preloaded.
2. Sign in to this company (in which the prerequisite activity has been performed) as a system administrator
with the gibbs username and 123 password.
3. Make sure that the Manufacturing feature has been enabled on the Enable/Disable Features (CS100000)
form.

Step 1: Creating the Planning Production Order Type

To create the production order type for planning, do the following:
1. On the Production Order Types (AM201100) form, add a new record.

To open the form for creating a new record, type the form ID in the Search box, and on the
Search form, point at the form title and click New right of the title.

2. In the Summary area, specify the following settings:

a. Order Type: PL
b. Active: Selected
c. Description: Planning orders
d. Function: Planning
3. On the General tab, do the following:
a. In the Order Numbering Sequence box of the Numbering Settings section, select AMPLAN.
b. In the Account Settings section, select the following accounts:
• Work in Process Account: 12500
• WIP Variance Account: 51500
c. In the Costing Method box of the Order Defaults section, select Estimated.
d. In the Copy BOM Notes section, select all the check boxes so that the system copies the notes to
production orders of the type.
4. On the form toolbar, click Save.

Step 2: Specifying the Default Planning Order Type

Because you have created an order type for planning orders, you will specify this type as the default type for
planning in the material requirements planning (MRP) settings. Do the following:
1. Open the MRP Preferences (AM100000) form.
2. In the Plan Order Type box of the General section, select PL.
 Implementing Manufacturing | 491

3. On the form toolbar, click Save.

You have successfully created the order type for planning and specified it as the default order type in the MRP
settings.

Production Order Types: To Create a Disassembly Production Order Type

In this implementation activity, you will learn how to create a production order type for disassembly production
orders.

Story
Suppose that you are an implementation manager who needs to define production orders that will be used
for disassembly. You need to create the production order type that will generally provide the settings for these
production orders, and define it as the default type for the orders.

Configuration Overview
The following entities, which you will use in this activity, have been predefined in the U100 dataset:
• On the Numbering Sequences (CS201010) form, the AMDIS numbering sequence
• On the Chart of Accounts (GL202500) form, the 12500 - Work in Progress and 51500 - COGS - WIP Inventory
Variance GL accounts

Process Overview
On the Production Order Types (AM201100) form, you will create an order type for disassembly orders. Then on the
Production Preferences (AM102000) form, you will specify this order type as the default type for orders used for
disassembly operations.

System Preparation
Before you start creating the order type, do the following:
1. As a prerequisite to the current activity, complete System Preparation for Manufacturing Implementation:
Implementation Activity so that the needed settings have been made in a company with the U100 dataset
preloaded.
2. Sign in to this company (in which the prerequisite activity has been performed) as a system administrator
with the gibbs username and 123 password.
3. Make sure that the Manufacturing feature has been enabled on the Enable/Disable Features (CS100000)
form.

Step 1: Creating the Disassembly Production Order Type

To create the production order type for disassembly, do the following:
1. On the Production Order Types (AM201100) form, add a new record.

To open the form for creating a new record, type the form ID in the Search box, and on the
Search form, point at the form title and click New right of the title.

2. In the Summary area, specify the following settings:

 Implementing Manufacturing | 492

a. Order Type: DA
b. Active: Selected
c. Description: Disassembly orders
d. Function: Disassemble
3. On the General tab, do the following:
a. In the Order Numbering Sequence box of the Numbering Settings section, select AMDIS.
b. In the Account Settings section, select the following accounts:
• Work in Process Account: 12500
• WIP Variance Account: 51500
c. On the form toolbar, click Save.
d. In the Costing Method box of the Order Defaults section, notice that Actual is selected and unavailable
for editing because only the Actual costing method can be applied to disassembly operations.
e. In the Copy BOM Notes section, select all the check boxes so that the system copies the notes to
production orders of the type.
f. In the Data Entry Settings section, specify the following settings:
• Over Issue Material: Warn
• Include Unreleased Batch Qty.: Selected
• Issue Material Not on Order: Warn
• Move on Completed Operations: Warn
• Exceeding Qty. for Operations: Warn
• Exceeding Qty. for Orders: Warn
• Default Operation Move Qty.: Selected
4. On the form toolbar, click Save.

Step 2: Specifying the Default Production Order Type for Disassembly

Because you have created an order type for disassembly production orders, you will specify this type as the default
type for disassembly in the production settings. Do the following:
1. Open the Production Preferences (AM102000) form.
2. In the Default Disassemble Order Type box of the General tab (Data Entry Settings section), select DA.
3. On the form toolbar, click Save.

You have successfully created the production order type for disassembly and specified it as the default order type
for disassembly in the production settings.

Implementing Production of Lot- or Serial-Tracked Items

This chapter describes the configuration of processing production of lot- or serial-tracked items in Acumatica ERP
Manufacturing Edition.
 Implementing Manufacturing | 493

Configuration for the Production of Lot- or Serial-Tracked Items: General

Information

The following sections provide information about the configuration that must be performed before you start
recording the production of lot- or serial-tracked items in Acumatica ERP Manufacturing Edition.

Learning Objectives
In this chapter, you will learn how to do the following:
• Prepare the system to recording the production of lot- or serial-tracked items
• Create a bill of material for producing lot- or serial-tracked items
• For a production order type, specify settings that control the assignment of lot or serial numbers for a
production order of the type

Applicable Scenarios
You configure the recording of the production of lot- or serial-tracked items in the following cases:
• When you are initially implementing Acumatica ERP Manufacturing Edition and your organization produces
lot- or serial-tracked items, uses lot- or serial-tracked materials in production, or performs both of these
processes
• When your organization already uses Acumatica ERP Manufacturing Edition and recently have started to
produce lot- or serial-tracked items, uses lot- or serial-tracked materials in production, or performs both of
these processes

Prerequisites
Before you start implementing the recording of the production of lot- or serial-tracked items, you need to make
sure that the following tasks have been performed:
• The system has been prepared for the implementation of manufacturing functionality, as illustrated in
System Preparation for Manufacturing Implementation: Implementation Activity.
• The production of items has been configured, as described in Production Processing: Implementation
Checklist.

System Features to Be Enabled

Before you configure and process the production of lot- or serial-tracked items in the system, you need to enable
the following features on the Enable/Disable Features (CS100000) form:
• Lot and Serial Tracking: Required for the creation of lot- or serial-tracked items and the processing of
documents and transactions with these items
• Manufacturing: Required for the use of manufacturing functionality

Configuration Steps
To prepare the system for processing the production of lot- or serial-tracked items, you do the following:
1. On the Lot/Serial Classes (IN207000) form, you create the lot or serial classes to be used for produced items
and for materials that must be tracked in the system by lot or serial numbers. Among other class settings,
in the Assignment Method box, you should select When Received for users to be able to preassign lot or
 Implementing Manufacturing | 494

serial numbers to production orders. Also, we recommend that you select the Auto-Generate Next Number
check box and specify the numbering settings in the table, so that the lot or serial numbers are generated
automatically.
For information about creating lot or serial classes, see Items with Lot and Serial Numbers: Implementation
Activity.
2. On the Stock Items (IN202500) form, you create the records for stock items to be produced (parent items)
and for materials to be used for producing the items. In the Lot/Serial Class box of the Item Defaults
section on the General tab, you specify the lot or serial class to be used for this item.
3. On the Bill of Material (AM208000) form, you create the bills of material to be used for producing lot- or serial-
tracked items.
4. On the Production Order Types (AM201100) form, you create the production order type to be used for
production orders with lot- or serial-tracked items or specify the needed settings in an existing production
order type with the Regular function. For details, see the Default Settings for the Assignment of Lot or Serial
Numbers section below.

Default Settings for the Assignment of Lot or Serial Numbers

You need to create a production order type that will facilitate the processing of production orders with lot- or serial-
tracked items whose lot or serial numbers need to be assigned before production managers start processing the
production orders. The production order type will provide the default settings for the assignment of lot or serial
numbers to production orders of this type. On the Production Order Types (AM201100) form, you need to do the
following for this production order type:
1. In the Summary area, you specify the identifier and description, and select the Regular function.
2. In the Data Entry section of the General tab, you select the Allow Preassigning Lot/Serial Numbers check
box. With this check box selected, lot or serial numbers can be specified for items before a production order
of the type is released.
3. In the Require Parent Lot/Serial Number box, which becomes available if the Allow Preassigning Lot/
Serial Numbers check box is selected, you select one of the following options:
• On Issue if the lot or serial number of a produced item should be assigned to lot- or serial-tracked
materials when a material transaction is released on the Materials (AM300000) form. The system will not
release the transaction until a production manager assigns the lot or serial number of the produced item
to each lot- or serial-tracked material.

With this option, backflushing of lot- or serial-tracked materials is not supported because
this setting requires a lot or serial number to be assigned to the parent item when the
materials are issued.

• On Completion if the lot or serial number of a produced item must be assigned to lot- or serial-tracked
materials before produced items are moved into stock through the release of the appropriate transaction
when the last operation occurs. On the Late Assignment (AM312000) form, the production manager
assigns the lot or serial numbers of the produced item to its materials aer the materials have been
issued. The production manager must assign the lot or serial number of the produced item to each
material to be able to release the transaction, which is a move transaction on the Move (AM302000) form
or a labor transaction with a positive produced quantity on the Labor (AM301000) form.
• Never if the assignment of lot or serial numbers of a parent item to lot- or serial-tracked materials is
not needed or if most produced items do not contain lot- or serial-tracked materials. This is the default
option.
 Implementing Manufacturing | 495

Configuration for the Production of Lot- or Serial-Tracked Items: Implementation

Activity

In this implementation activity, you will prepare the system to process production orders that include lot- or serial-
tracked items.

Story
Suppose that SweetLife Fruits & Jams has decided to extend its assortment of assembled juicers with a juicer for
fruit. The company provides services for the replacement and repairing of the juicers. To make sure that juicers
and parts were bought from SweetLife Fruits & Jams, the customer service managers have asked the production
department to assign a serial number to each juicer and to assign this serial number to the serial-tracked parts
used in the juicer production. A production manager should assign serial numbers to juicers when creating
production orders. The manager should also specify settings for the assignment of serial numbers of a produced
item to serial-tracked materials when production orders are created. (That is, the manager should specify the
option indicating whether workers should assign the serial numbers when materials are issued or when recording
the movement of the assembled juicers to stock).
Assembly will take place in a specific work center of the Workhouse warehouse of the Service and Equipment
Sales Center branch. The process of assembling a juicer consists of one assembly operation; it requires various
juicer parts (such as a motor base) as materials, and a hammer and screwdriver as tools. Overhead costs have been
specified at the work center level; you do not need to specify them on the bill of material. In the work center, two
workers are involved in juicer assembly, each of whom produces three juicers per hour.
As an implementation manager, you will create the bill of material for the assembly process of the configurable
juicer for fruits and vegetables, specify the default settings for assignment of serial numbers to production orders,
and review the settings of serial-tracked stock items that are involved in production.

Configuration Overview
In the U100 dataset, the following configuration tasks have been performed to prepare the system for this activity
to be performed:
• On the Warehouses (IN204000) form, the WORKHOUSE warehouse and the MGI and MTL locations have been
defined.
• On the Stock Items (IN202500) form, the CFJFRUITSN, PULPCONT1L, JUICECUP05L, MRBASESN, FNSIEVE, and
GRDISC01 stock items have been defined.
• On the Lot/Serial Classes (IN207000) form, the SNJCRPRT and ASNCFGJCR serial classes have been created.
In the company in which you have completed the previous lessons of the M100 Basic Manufacturing
Implementation training course, you have performed the following tasks for the purposes of this activity:
• On the Tools (AM205500) form, you have created tools for a screwdriver and hammer.
• On the Work Centers (AM207000) form, you have created a work center for juicer assembly.
• On the Production Order Types (AM201100) form, you have created an order type for regular production
orders.

Process Overview
In this activity, to prepare the system to manage the production of serial-tracked items with serial-tracked
materials, you will do the following:
1. On the Bill of Material (AM208000) form, create and configure the bill of material to be used for the fruit juicer
production.
 Implementing Manufacturing | 496

2. On the Production Order Types (AM201100) form, you will specify the default settings for the preassignment
of serial numbers in regular production orders of this type.
3. On the Stock Items (IN202500) form, you will review the serial-tracking settings specified for the juicer item
and for the motor base item, which is the serial-tracked material used in production of the juicers.

System Preparation
Before you start performing the activity, do the following:
1. As prerequisites to the current activity, perform the following activities in the listed order:
a. Production Cost Drivers: Implementation Activity so that the needed tools have been created in a company
with the U100 dataset preloaded
b. Work Centers: Implementation Activity so that the needed work center has been created in this company
c. Production Order Types: To Create a Regular Production Order Type to create a production order type for
regular orders
2. Sign in to this company (in which the prerequisite activities have been performed) as a system administrator
with the gibbs username and 123 password.
3. Sign in to the company in which the previous lessons have been performed as a system administrator with
the gibbs username and 123 password.
4. Enable the Lot and Serial Tracking feature (under the Inventory and Order Management group of features)
has been enabled on the Enable/Disable Features (CS100000) form.

Step 1: Creating a Bill of Material

To create a bill of material, do the following:
1. On the Bill of Material (AM208000) form, add a new record.

To open the form for creating a new record, type the form ID in the Search box, and on the
Search form, point at the form title and click New right of the title.

2. In the Summary area, specify the following settings:

• Revision: A
• Hold: Selected
• Inventory ID: CFJFRUITSN
• Warehouse: WORKHOUSE
• Start Date: 1/1/2022
• End Date: Empty
• Description: A bill of material for assembly of configurable juicers for
fruits and vegetables
3. On the form toolbar, click Save.

Step 2: Adding an Operation

To add the assembly operation to the bill of material, while you are still viewing the bill of material on the Bill of
Material (AM208000) form, do the following:

1. On the toolbar of the Operations table, click Add Row.

2. In the row, specify the following settings:
 Implementing Manufacturing | 497

• Operation ID: 010

• Work Center: WCR10
You created this work center in Work Centers: Implementation Activity.
• Setup Time: 00:30
• Run Units: 3
• Run Time: 01:00
3. On the form toolbar, click Save.

Step 3: Adding Materials

To add the materials required for the operation, while you are still viewing the bill of material on the Bill of Material
(AM208000) form, do the following:
1. In the Operations table, click the row with the 010 operation.
2. On the Materials tab of the lower part of the form, add rows for the stock items listed in the following table,
specifying the listed settings for each.

Inventory ID Qty. Required

MRBASESN 1

JUICECUP05L 1

PULPCONT1L 1

FNSIEVE 1

GRDISC01 1

3. On the form toolbar, click Save.

Step 4: Adding the Steps

To add the steps required to perform the operation, while you are still viewing the bill of material on the Bill of
Material (AM208000) form, do the following:

1. With the 010 operation still selected, on the Steps tab of the lower part of the form, add four rows for the
steps, entering the following text in the Description column of each row in the listed order:
a. Attach the grating disc to the motor base.
b. Attach the fine sieve to the grating disc.
c. Attach the pulp container to the motor base.
d. Attach the juice cup to the motor base.
2. On the form toolbar, click Save.

Step 5: Adding the Tools

To add the tools involved in the assembly process (you created these tools in Production Cost Drivers:
Implementation Activity) to the operation settings, while you are still viewing the bill of material on the Bill of Material
(AM208000) form, do the following:
 Implementing Manufacturing | 498

1. On the Tools tab, add rows for the tools listed in the following table, specifying the listed settings for each.

Tool ID Qty. Required Unit Cost

HAMMER 1 0.02

SCREWDRIVER 1 0.20

2. On the form toolbar, click Save.

Step 6: Activating the Bill of Material

To make the created bill of material active and specify it as the default bill of material for the CFJFRUITSN item,
while you are still viewing the bill of material on the Bill of Material (AM208000) form, do the following:
1. In the Summary area, clear the Hold box. The status of the bill of material is changed to Active.
2. On the form toolbar, click Save.
3. On the More menu (under Other), click Set as Default BOM.

You open the More menu by clicking the More button (…) on the form toolbar.

4. In the Default BOM Levels dialog box, which opens, do the following:
a. Make sure that the Item and Warehouse check boxes are selected.
b. Click Update.
The system inserts the identifier of the bill of material in the Default BOM ID box of the Manufacturing tab
of the following forms:
• The Stock Items (IN202500) form for the CFJFRUITSN item
• The Item Warehouse Details (IN204500) form for the CFJFRUITSN item and WORKHOUSE warehouse

Step 7: Specifying the Default Settings for the Assignment of Lot or Serial Numbers to Production
Orders
To allow users to preassign lot or serial numbers to regular production orders by default, do the following:
1. On the Production Order Types (AM201100) form, open the RO production order type.
2. In the Data Entry Settings section of the General tab, select the Allow Preassigning Lot/Serial Numbers
check box.
3. In the Require Parent Lot/Serial Number box, which becomes available, make sure that Never is
specified. Production managers will select the needed option (On Issue or On Completion) when they create
production orders of this type.
4. On the form toolbar, click Save.

Step 8: Reviewing the Settings of Serialized Stock Items Involved in Production

You will review the settings of the CFJFRUITSN stock item, which is used for tracking production of serialized juicers,
and the MRBASESN item, which is used as a material for CFJFRUITSN production. Do the following:
1. On the Stock Items (IN202500) form, open the CFJFRUITSN item.
 Implementing Manufacturing | 499

2. In the Lot/Serial Class box of the General tab (Item Defaults section), make sure that ASNCFGJCR is
specified.
3. Click the Edit button to the right of the Lot/Serial Class box. The system opens the Lot/Serial Classes
(IN207000) form for the serial class in a separate window.
4. Review the settings of the serial class as follows (see the following screenshot):
a. In the Assignment Method box, make sure that When Received is specified.
b. Make sure that the Auto-Generate Next Number check box is selected.
c. In the table, review the settings that determine the structure of the serial numbers of items of the class,
with each row representing a segment of the serial number. These serial numbers consist of the JC prefix
(with the Constant type) and the auto-incrementing value.

Figure: The settings of the serial class for serial-tracked juicers

5. Close the window with the Lot/Serial Classes form.

6. In the Inventory ID box, select MRBASESN.
7. In the Lot/Serial Class box of the Item Defaults section on the General tab, make sure that SNJCRPRT is
specified, which means that this item, which is used as material for CFJFRUITSN, is serial-tracked.

You have configured the bill of material for the serialized juicer, specified default settings for the preassignment of
serial numbers for regular production orders, and reviewed the serial-tracking settings of stock items involved in
production.
 Implementing Manufacturing | 500

Implementing Outside Processing

This chapter describes the minimum configuration of the outside processing functionality in Acumatica ERP
Manufacturing Edition.

Outside Processing Configuration: General Information

Acumatica ERP Manufacturing Edition provides you with the ability to configure and use outside processing within
the production process. This topic describes the configuration of the outside processing in the system.
For details on processing production orders with outside operations, see Outside Processing: General Information.

Learning Objectives
In this chapter, you will learn how to do the following:
• Create a work center dedicated for outside processing
• Create a bill of material that contains an operation outsourced to a subcontractor
• Select the appropriate type of item (stock or non-stock) for recording the subcontractor charges
• Select the appropriate way to store and deliver materials used in outside processing

Applicable Scenarios
You configure outside processing in the following cases:
• When you are initially implementing Acumatica ERP Manufacturing Edition and your organization contracts
out some or all production operations
• When your organization already uses Acumatica ERP Manufacturing Edition and recently has started to
contract out some or all production operations

Configuration of Outside Processing

To configure outside processing, you perform the following general steps:
1. On the Numbering Sequences (CS201010) form, you create the numbering sequence for vendor shipments.
2. On the Production Preferences (AM102000) form, you specify the numbering sequence in the Vendor
Shipment Numbering Sequence box in the Numbering Settings section of the General tab.
3. On the Vendors (AP303000) form, you create the needed vendors who will represent subcontractors.
4. On the Overhead (AM202500) form, you create any needed records for additional costs to be applied to the
outside operation. For details, see Production Cost Drivers: Implementation Activity.
5. On the Work Centers (AM207000) form, you create at least one work center for each subcontractor who
performs outside processing. The work center must have the Outside Process check box selected in the
Summary area. For more information, see the Work Centers for Outside Processing section below.
6. On the Stock Items (IN202500) or Non-Stock Items (IN202000) form, you create the needed stock items
or non-stock items that you will use to pay the subcontractor for their services. For details, see Outside
Processing Configuration: Charges for Subcontractor Services.
 Implementing Manufacturing | 501

7. On the Bill of Material (AM208000) form, you create the needed bills of material that you will use for
production orders with outside processing operations. For more information, see the Bills of Material with
Outside Operations section below.
8. On the Warehouses (IN204000) form, you create the warehouses or warehouse locations to be involved in
outside processing if any materials for the outside operations will be stored by the subcontractor and if
you would like to track the availability and movement of the materials. For more information, see Outside
Processing Configuration: Material Storage and Delivery.

Work Centers for Outside Processing

When you create a work center for subcontractors, you specify the settings on the Work Centers (AM207000) form as
follows:
• In the Summary area, you select the Outside Process check box.
• In the Standard Cost box, you type 0. With this setting, the system will not add labor costs when a
production manager records the completion of the outside operation.
• We recommend that you select the Backflush Materials check box. Because the work is performed outside
your organization, recording issued materials may not be feasible; the subcontractor should complete the
work as planned.
• On the Shis tab, you specify the following settings for the automatically added shi:
• Crew Size: 0
• Efficiency: 1
• Calendar: Your standard calendar
You leave the default values for the other settings.
• On the Overhead tab, you specify any additional costs to be applied to the outside processing.
For details on creating work centers, see Work Centers: Implementation Activity.

Bills of Material with Outside Operations

If you are tracking outside operations within the production process, we recommend that you create production
orders that include outside operations. You need to create bills of material on which the production orders will
be based. If you produce an item either by using subcontractor services or by involving the production facilities of
your organization, you can create two bills of material for the same item: one with the outside operation and one
without it. For more information about creating bills of material, see Bills of Material: Implementation Activity.
To add an outside operation to the bill of material (which must be on hold), you do the following on the Bill of
Material (AM208000) form:

1. In the Operations table, you add a row for the outside operation.
2. In the Work Center column, you select a work center for which the Outside Process check box is selected
on the Work Centers (AM207000) form.
3. You specify the time for the operation as follows:
• If the time required for the outside operation is fixed, you specify the time in the Queue Time column.
• If the time varies, you specify the run time and the run units in the corresponding columns.
4. On the Materials tab, you add rows for the materials as follows, depending on the nature of the materials:
• Materials you will ship to the subcontractor: You specify the Subcontract material type and Ship to Vendor
subcontract source.
• Subcontractor charges you will pay by using purchase orders: You specify the Subcontract material type
and Purchase subcontract source.
 Implementing Manufacturing | 502

• Materials that the subcontractor will purchase on its own (optional): You specify the Subcontract material
type and Vendor Supplied subcontract source. The system does not include the cost of these materials in
the cost of the produced item. You can add rows for these materials for informational purposes.
5. On the Outside Process tab, you make sure that the Outside Process check box is selected and specify the
subcontractor in the Vendor box.

Outside Processing Configuration: Material Storage and Delivery

When your organization contracts out any operations of the production process, these operations may require
materials to be provided to subcontractors. In the following sections, you can find details about the configuration
of the system for tracking the materials provided to subcontractors.

Storing Materials for Outside Processing

You can use any of the following scenarios to provide materials to a subcontractor who performs outside
operations:
• Your organization stores the materials at your facility. In this case, you need to ship the materials to the
subcontractor. You record the shipping of the material by creating vendor shipments related to production
orders on the Vendor Shipments (AM310000) form.
• The subcontractor stores the materials at its site. In this case, you may purchase the materials from a
vendor and specify the subcontractor's address as the delivery address so that the vendor delivers the items
directly to the subcontractor. You use the Purchase Orders (PO301000) form to create the purchase orders
for these purchases.

In this case, the purchase order is not linked to a production order.

• The subcontractor purchases the needed materials on its own and includes the cost of materials in the
service charge you will pay. You may include these materials in a bill of material for informational purposes.
(The system does not include cost of these materials in the cost of the produced item.) To do this, on
the Materials tab of the Bill of Material (AM208000) form, you add a row for the material and specify the
Subcontract material type and the Vendor Supplied subcontract source.

Tracking the Subcontractor's Storage of Materials

If the subcontractor stores materials in one of its locations, you may want to track the movement of the stock items
that represent the materials. Also, you may want to replenish the items or use material requirements planning
(MRP) for them. To track the materials in the system, you may use any of the following approaches:
• Use a specific location in an existing warehouse. If you do, you should consider the following:
• You can issue or replenish items stored in a warehouse location.
• You can include all items stored in the location in MRP or exclude all of them from MRP (at the location
level).
• If you create a purchase order to replenish the items stored by the subcontractor, you need to ensure
that you specify the correct warehouse location for the purchase receipt.
• You can use only single-step transfers between the locations of the same warehouse, which means that
you cannot track items that are in transit.
• You can use the standard inventory inquiries and reports to view the item availability.
• Use a specific warehouse in the system. If you do, you should consider the following:
• You can use either single-step or two-step transfers for tracking item movement between warehouse
locations or warehouses. By using a two-step transfer, you can track items in transit.
 Implementing Manufacturing | 503

• You can track movement of items by using the Transfer type of sales order. With this document, you
can create shipments and the related documents and transactions, including carrier labels, and collect
freight or landed costs.
• You can manage MRP calculation by creating multiple locations with different MRP settings.

Outside Processing Configuration: Charges for Subcontractor Services

If the subcontractor produces items at its location and then delivers the items to your warehouse, we recommend
that you create an inventory item in Acumatica ERP Manufacturing Edition for each produced item to recognize the
item's cost. For example, suppose that the subcontractor fills containers that your organization has supplied with
materials that the subcontractor supplies. In this case, your organization will be billed for the cost of the materials
in the container and for the cost of labor required to fill the containers.

The cost of subcontractor-supplied materials should reflect the added value and should not include
the cost of materials you provided; these material costs are recognized when you issue the materials
to the production order.

You use purchase orders to pay for the subcontractor's service. When the outside operation is complete, you
release the purchase receipts related to the orders.
In the following sections, you will read about the configuration of the system for processing subcontractor's
charges in the system.

Charges for Subcontractor Services

The service charges may or may not include materials the subcontractor uses for production. Depending on this
factor and other conditions, you can use either stock or non-stock items for subcontractor services as follows:
• You use a stock item if any of the following is true for you:
• You would like purchase orders to be allocated for production orders. In this case, you can use the
Unreleased Material Allocations (AM305500) form to issue the allocated items.
• You want to be able to use any valuation method available for stock items to better reflect the cost of the
service.
• You would like to use material requirements planning for these items.
• You need to apply transport costs to the unit costs of the services.
• You use a non-stock item if the subcontractor sends bills for services separately from produced items or
when the services are the only charge. When you use non-stock items, you need to consider the following:
• For non-stock items, you can use only the Standard valuation method.
• You can use a separate non-stock item for each subcontractor service charge or use a single item for all
service charges. If you use a single item, you set the standard item cost to 1.00 and specify the actual
amount in the Qty. Required column of the Material tab on the Bill of Material (AM208000) form for the
material that represents the service charge. For example, suppose that the subcontractor charges $0.53
per piece for one item and $1.23 for another; you would specify the quantity required as 0.53 and 1.23
respectively.
• Non-stock items are not allocated to a production order; you must issue or backflush them in order to
apply the cost to a production order.
• You can decide whether a purchase order receipt is required for the non-stock item. When you use a
purchase receipt, you can create a linked AP bill to record the purchase amount in GL.
Unless you need to issue lot- or serial-tracked materials, we recommend backflushing the materials consumed
or produced by the subcontractor. If you are using a stock item for the service charge, you process the purchase
receipt before issuing or backflushing the materials to update the average or FIFO cost. If you are using a non-stock
 Implementing Manufacturing | 504

item and the service cost differs from the planned cost, you change the quantity of the non-stock item to reflect the
cost.

Cost Accrual for Non-Stock Items Used as Materials

You select the Accrue Cost check box on the Price/Cost tab and specify the accrual account in the Expense Accrual
Account box on the GL Accounts tab of the Non-Stock Items (IN202000) form if the following conditions are met:
• You use non-stock items for materials used in outside processing.
• According to the business processes of your organization, the costs of these non-stock items must be
accrued.
For details on the transactions the system generates for the item costs, see Outside Processing: Generated
Transactions.

Outside Processing Configuration: Implementation Activity

In this implementation activity, you will learn how to implement production processes that include outside
operations.

Story
Suppose that SweetLife Fruits & Jams has started to receive many customer orders for assembled juicers. The
current capacity of work centers has been reached, so the production manager has decided to outsource the
assembly of some of the juicers to an outside vendor, Custom Assembly Services. The materials required for juicer
assembly will still be stored at the SweetLife Fruits & Jams warehouse and will be shipped to the vendor. The
materials are the same as for in-house assembly. The vendor will use their own tools and charge SweetLife Fruits &
Jams for their service in the amount of $50 per juicer. The assembled juicers will be received to the warehouse and
then inspected by a warehouse worker. Suppose that the warehouse worker inspects four juicers per hour and no
specific setup or tools are required for this operation.
Acting as the implementation manager, you need to configure outside processing for juicer assembly in the system.
That is, you need to create a work center for outside processing, a work center for inspection, and a bill of material
to be used for the outside assembly of juicers.

Configuration Overview
The following entities, which you will use in this activity, have been predefined in the U100 dataset:
• On the Warehouses (IN204000) form, the WORKHOUSE warehouse
• On the Stock Items (IN202500) form, the CFJFRUIT, PULPCONT1L, JUICECUP05L, MRBASE, FNSIEVE, and
GRDISC01 stock items
• On the Vendors (AP303000) form, the CSEMBLY vendor (which provides the subcontractor services for juicer
assembly)
• On the Work Calendar (CS209000) form, the MAIN work calendar, which is used for standard working hours
• On the Non-Stock Items (IN202000) form, the MFGSUBCON non-stock item
In the company in which you have completed the previous lessons of the M100 Basic Manufacturing
Implementation training course, you have performed the following tasks for the purposes of this activity:
• On the Shifts (AM205000) form, you have created a shi for standard working hours
• On the Labor Codes (AM206500) form, you have created a labor code for direct labor costs
 Implementing Manufacturing | 505

Process Overview
In this activity, you will do the following:
1. On the Production Preferences (AM102000) form, review the default settings related to outside processing.
2. On the Work Centers (AM207000) form, create a work center for outside processing.
3. On the same form, create a work center for inspecting the juicers assembled by the subcontractor.
4. On the Bill of Material (AM208000) form, create a bill of material for producing juicers that will be assembled
by the subcontractor.

System Preparation
Before you start performing the activity, do the following:
1. As prerequisites to the current activity, complete the following activities in the specified order:
a. System Preparation for Manufacturing Implementation: Implementation Activity so that the needed settings
have been made in a company with the U100 dataset preloaded
b. Production Cost Drivers: Implementation Activity so that the needed cost drivers have been created in a
company with the U100 dataset preloaded
c. Work Centers: Implementation Activity so that the shi for standard working hours has been created
2. Sign in to the company in which the prerequisite activities have been performed. You should sign in as a
system administrator by using the gibbs username and 123 password.

Step 1: Reviewing Default Settings for Outside Processing

In a production system, you would need to specify the settings related to outside processing before you start
processing production orders that include outside operations. These settings have been predefined in the U100
dataset for simplicity. In this step, you will review them settings. On the Production Preferences (AM102000) form, do
the following:
1. In the Numbering Settings section of the General tab, make sure that AMVSHIP is specified in the Vendor
Shipment Numbering Sequence box.
2. In the Vendor Shipment Settings section, make sure that the following has been specified:
• Hold Shipments on Entry: Selected
• Validate Shipment Total on Confirmation: Cleared

Step 2: Creating a Work Center for Outside Processing

To create a work center for outside processing, do the following:
1. On the Work Centers (AM207000) form, add a new record.

To open the form for creating a new record, type the form ID in the Search box, and on the
Search form, point at the form title and click New right of the title.

2. In the Summary area, specify the following settings:

• Work Center: OUTPROC
• Description: Work center for outside assembly of juicers
• Warehouse: WORKHOUSE
 Implementing Manufacturing | 506

• Active: Selected
3. On the General tab, specify the following settings:
• Standard Cost: 0
• Basis for Capacity: Crew Size
• Scrap Action Default: No Action
• Backflush Materials: Selected
• Backflush Labor: Selected
• Control Point: Cleared
• Outside Process: Selected
4. On the Shis tab, do the following:
a. Make sure that the row for the 0001 shi has been added. (The row for the first shi is always added
automatically because the work center must have at least one shi.)
b. In this row, specify the following:
• Crew Size: 0
• Efficiency: 1
• Calendar ID: MAIN
• Labor Code: DIRLAB (specified automatically)
You created this labor code in Production Cost Drivers: Implementation Activity.
Make sure that the values in the Diff Type and Shi Diff columns (Amount and 0.0000, respectively) have
been copied from the shi settings on the Shifts (AM205000) form.
5. On the form toolbar, click Save.

Step 3: Creating a Work Center for Inspection

To create a work center for inspection of juicers assembled by the outsource vendor, do the following on the Work
Centers (AM207000) form:

1. On the form toolbar, click Add New Record.

2. In the Summary area, specify the following settings:
• Work Center: WCR100
• Description: Work center for inspection
• Warehouse: WORKHOUSE
• Active: Selected
3. On the General tab, specify the following settings:
• Standard Cost: 10
• Basis for Capacity: Crew Size
• Scrap Action Default: No Action
• Backflush Materials: Cleared
• Backflush Labor: Selected
• Control Point: Cleared
• Outside Process: Cleared
4. On the Shis tab, do the following:
a. In the only row, specify the following:
• Crew Size: 1
• Efficiency: 1
 Implementing Manufacturing | 507

• Calendar ID: MAIN

• Labor Code: DIRLAB
Make sure that the values in the Diff Type and Shi Diff columns (Amount and 0.0000, respectively) have
been copied from the shi settings on the Shifts (AM205000) form.
5. On the form toolbar, click Save.

Step 4: Creating a Bill of Material with the Outside Processing Operation

To create a bill of material that includes an outside processing operation, do the following:
1. On the Bill of Material (AM208000) form, add a new record.
2. In the Summary area, specify the following settings:
• Revision: A
• Hold: Selected
• Inventory ID: CFJFRUIT
• Warehouse: WORKHOUSE
• Start Date: 1/1/2022
• End Date: Empty
• Description: A bill of material for outside assembly of configurable juicers
3. On the form toolbar, click Save.
4. Add an operation for the outside assembly of juicers as follows:
a. On the toolbar of the Operations table, click Add Row.
b. In the row, specify the following settings:
• Operation ID: 010
• Work Center: OUTPROC
• Setup Time: 00:00
• Run Units: 1
• Run Time: 00:00
• Backflush Labor: Selected
c. On the Materials tab, add rows for the items listed in the following table, specifying the listed settings for
each.

Inventory ID Qty. Re- UOM Unit Cost Material Subcon- Backflush

quired Type tract
Source

MFGSUBCON 50 EA 1 Subcon- Purchase Selected

tract

PULPCONT1L 1 EA 17.59 Subcon- Ship to Cleared

tract Vendor

JUICECUP05L 1 EA 16.79 Subcon- Ship to Cleared

tract Vendor

MRBASE 1 EA 325.89 Subcon- Ship to Cleared

tract Vendor
 Implementing Manufacturing | 508

Inventory ID Qty. Re- UOM Unit Cost Material Subcon- Backflush

quired Type tract
Source

FNSIEVE 1 EA 60.95 Subcon- Ship to Cleared

tract Vendor

GRDISC01 1 EA 42.95 Subcon- Ship to Cleared

tract Vendor

d. On the Outside Process tab, make sure the Outside Process check box is selected. (The system copied
its state from the work center settings.)
e. In the Vendor box, select CSEMBLY.
5. Add an operation for inspection as follows:
a. On the toolbar of the Operations table, click Add Row.
b. In the row, specify the following settings:
• Operation ID: 020
• Work Center: WCR100
• Setup Time: 00:00
• Run Units: 4
• Run Time: 01:00
• Backflush Labor: Selected
6. In the Summary area, clear the Hold box. The status of the bill of material is changed to Active.
7. On the form toolbar, click Save.

You have successfully created the bill of material that production managers will use to create production orders for
juicers to be assembled by the subcontractor.

Implementing Item Production with Backflushing

This chapter describes the minimum configuration of the item production with material and labor backflushing in
Acumatica ERP Manufacturing Edition.

Configuration of Production with Backflushing: General Information

Acumatica ERP Manufacturing Edition provides you with the ability to backflush materials or labor within the
production process. The following sections describe the configuration of the production with material or labor
backflushing in the system.
For details on processing production orders with material or labor backflushing, see Production with Backflushing:
General Information.

Learning Objectives
In this chapter, you will learn how to do the following:
• Create a work center with the default settings for backflushing materials or labor
 Implementing Manufacturing | 509

• Create a bill of material for producing items and backflushing materials or labor for some operations

Applicable Scenarios
You configure the production process with material or labor backflushing in the following cases:
• When you are initially implementing Acumatica ERP Manufacturing Edition and your organization uses
material or labor backflushing for all or some production operations
• When your organization already uses Acumatica ERP Manufacturing Edition and has recently started to
backflush materials or labor for some or all production operations

Default Settings for Material or Labor Backflushing

To specify the default settings that will be used for material and labor backflushing, you do the following:
• In the Summary area of the Work Centers (AM207000) form, you select the Backflush Materials check box,
the Backflush Labor check box, or both check boxes to establish the default settings for the selected work
center.
• In the Operations table of the Bill of Material (AM208000) form, you add each operation that is performed in
the work center you have defined. The system copies the state of the Backflush Labor check box from the
settings of the specified work center to the Backflush check box in the operation row. You can change the
default state of the check box for each operation row.
• On the Materials tab of the same form, you add the materials required to perform each operation (aer first
selecting the operation). By default, the system copies the state of the Backflush Materials check box from
the settings of the work center specified for the operation to the Backflush check box in each material row.
You can override the default state of the check box for each material row.
For each production order, you can override the default backflushing settings, which the system copies from the bill
of material specified in the production order, on the Production Order Details (AM209000) form, if needed.

Configuration of Production with Backflushing: Implementation Activity

In this implementation activity, you will learn how to implement production processes with the backflushing of
materials and labor.

Story
Suppose that the production department of SweetLife Fruits & Jams started to pack the assembled juicers before
shipping them to customers. So the production process will include the assembly operation and the packing
operation. Each operation is performed in a specific work center. In the work center where packing is performed,
workers put each assembled juicer in a box, fill in the box with packing peanuts, and seal the box with packing
tape. For packing a juicer, the following materials are required: one packing box, approximately 3 meters of packing
tape, and approximately 2 liters of packing peanuts. The exact quantity of the peanuts and the tape is not known
until the workers finish packing, so these materials should be backflushed, as should the box so that production
managers do not release any materials for the packing operation manually. Also, the workers of this work center
pack not only juicers but other items, so the time they spend on packing juicers should also be backflushed.
Acting as the implementation manager, you need to implement the production of juicers with material and labor
backflushing in the system—that is, create a work center dedicated to the packing operation and a bill of material
to be used for the assembly and packing of the juicers.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
 Implementing Manufacturing | 510

• On the Warehouses (IN204000) form, the WORKHOUSE warehouse has been defined, and its locations
include MGI and MTL.
• On the Stock Items (IN202500) form, the CFJFRUIT, PULPCONT1L, JUICECUP05L, MRBASE, FNSIEVE, GRDISC01,
PACKTAPE, PPEANUTS, and PACKBOX stock items have been defined.
• On the Work Calendar (CS209000) form, the MAIN work calendar has been defined, which is used for
standard working hours.
In the company in which you have completed the previous lessons of the M100 Basic Manufacturing
Implementation training course, you have performed the following tasks for the purposes of this activity:
• On the Tools (AM205500) form, you have created tools for a screwdriver and hammer.
• On the Work Centers (AM207000) form, you have created the work center for the assembly operation.

Process Overview
In this activity, you will do the following:
1. On the Work Centers (AM207000) form, create a work center for packing.
2. On the Bill of Material (AM208000) form, create a bill of material for the assembly and packing of the juicers.

System Preparation
Before you start performing the activity, do the following:
1. As prerequisites to the current activity, complete the following activities in the specified order:
a. System Preparation for Manufacturing Implementation: Implementation Activity so that the needed settings
have been specified in a company with the U100 dataset preloaded
b. Work Centers: Implementation Activity so that the work center for the assembly operation has been
created in the same company with the U100 dataset preloaded
2. Sign in to this company (in which the prerequisite activities have been performed) as a system administrator
with the gibbs username and 123 password.
3. Make sure that the Manufacturing feature has been enabled on the Enable/Disable Features (CS100000)
form.

Step 1: Creating a Work Center

To create a work center where the packing operation will be performed, do the following:
1. On the Work Centers (AM207000) form, add a new record.

To open the form for creating a new record, type the form ID in the Search box, and on the
Search form, point at the form title and click New right of the title.

2. In the Summary area, specify the following settings:

• Work Center: WCR200
• Description: Work center for packing
• Warehouse: WORKHOUSE
• Active: Selected
3. On the General tab, specify the following settings:
• Standard Cost: 12
• Basis for Capacity: Crew Size
 Implementing Manufacturing | 511

• Scrap Action Default: No Action

• Backflush Materials: Selected
• Backflush Labor: Selected
• Control Point: Cleared
• Outside Process: Cleared
4. On the Shis tab, do the following:
a. Make sure that the row for the 0001 shi has been added. (The row for the first shi is always added
automatically because a work center must have at least one shi.)
b. In this row, specify the following settings:
• Crew Size: 1
• Efficiency: 1
• Calendar ID: MAIN
• Labor Code: DIRLAB
You created this labor code in Production Cost Drivers: Implementation Activity, (which is a prerequisite
activity of the Work Centers: Implementation Activity prerequisite activity, which you have performed as
part of the System Preparation)
• Make sure that the Diff Type column contains Amount and the Shi Diff column contains 0.0000.
These values have been copied from the shi settings on the Shifts (AM205000) form.
5. On the form toolbar, click Save.

Step 2: Creating a Bill of Material

To create a bill of material that includes the packing operation, do the following:
1. On the Bill of Material (AM208000) form, add a new record.
2. In the Summary area, specify the following settings:
• Revision: A
• Hold: Selected
• Inventory ID: CFJFRUITBF
• Warehouse: WORKHOUSE
• Start Date: 1/1/2022
• End Date: Empty
• Description: A bill of material for the assembly and packing of juicers
3. On the form toolbar, click Save.
4. Add an assembly operation as follows:
a. On the toolbar of the Operations table, click Add Row.
b. In the row, specify the following settings:
• Operation ID: 010
• Work Center: WCR10
You created this work center for the assembly of juicers in Work Centers: Implementation Activity
(which was a prerequisite to the current activity).
• Setup Time: 00:30
• Run Units: 3
• Run Time: 01:00
• Backflush Labor: Cleared
 Implementing Manufacturing | 512

c. On the Materials tab, add rows for the items listed in the following table, specifying the listed settings for
each.

Inventory ID Qty. Required

PULPCONT1L 1

JUICECUP05L 1

MRBASE 1

FNSIEVE 1

GRDISC01 1

d. On the Tools tab, add rows for the tools listed in the following table, specifying the listed settings for
each.
You created these tools in Production Cost Drivers: Implementation Activity.

Tool ID Qty. Required Unit Cost

HAMMER 1 0.02

SCREWDRIVER 1 0.20

5. Add the packing operation as follows:

a. On the toolbar of the Operations table, click Add Row.
b. In the row, specify the following settings:
• Operation ID: 020
• Work Center: WCR200
• Setup Time: 00:00
• Run Units: 3
• Run Time: 01:00
• Backflush Labor: Selected
c. On the Materials tab, add rows for the items listed in the following table, specifying the listed settings for
each.

Inventory ID Qty. Required UOM Backflush

PACKTAPE 3 METER Selected

PPEANUTS 2 LITER Selected

PACKBOX 1 EA Selected

6. In the Summary area, clear the Hold box. The status is changed to Active.
7. On the form toolbar, click Save.

You have successfully created the bill of material that production managers will use to create production orders for
juicers to be assembled and packed.
 Implementing Manufacturing | 513

Implementing Production with Scrap, Waste, and By-Products

This chapter describes the minimum configuration of the item production that may include scrap, waste, and by-
products in Acumatica ERP Manufacturing Edition.

Configuration of Scrap, Waste, and By-Products in Production: General

InformationConfiguration of Scrap and Waste in Production: General Information

Acumatica ERP Manufacturing Edition provides you with the ability to account for the cost of scrap, waste, or by-
products in production costs. The following sections describe the configuration of item production with scrap,
waste, or by-products being accounted for.
Acumatica ERP Manufacturing Edition provides you with the ability to account for the cost of scrap and waste in
production costs. The following sections describe the configuration of item production with scrap and waste being
accounted for.

Learning Objectives
In this chapter, you will learn how to do the following:
• Set up the costs of material waste to be applied to production orders
• Set up scrap to be recorded in production-related transactions
• Set up by-products to be included in production orders
• Create reason codes for scrap

Applicable Scenarios
You configure the production process to track scrap, waste, or by-products in the following cases:
You configure the production process to track scrap or waste in the following cases:
• By-products are an output of some production operations in your organization, and you would like to
exclude costs of by-products from production costs.
• Scrap is an output of some production operations, and you would like shop-floor employees to enter the
quantities of scrapped items when they enter the quantities of produced items.
• Waste is significant for some production operations, and you would like to include waste costs in production
costs.

Differences Between Scrap, Waste, and By-ProductsDifferences Between Scrap and Waste
In addition to produced items, production may include such output as scrap, waste, or by-products.
In addition to produced items, production may include such output as scrap or waste.
A produced item is considered to be scrap if it does not meet the item's specifications or quality requirements.
The item may be reworked to meet specifications, sold as-is at a discounted price, used as a material in producing
another item, or discarded. You configure scrap processing in the system depending on the way your organization
treats scrap. For more information, see the Scrap Configuration Steps section below.
Waste is a loss of materials used in the production process. You may specify the percentage of the material to be
wasted and adjust the material cost included in a production order. The organization does not consider wasted
 Implementing Manufacturing | 514

material as having value, although your organization may recover some costs if it recycles waste, such as metal
filings, wood chips, or plastics. For details, see the next section.
A by-product is a secondary product that is also a production output but is minor in quantity or value in comparison
to the quantity or value of the primary product. Your organization may treat by-products as waste, use them in
another production process, or sell them. For more information, see Configuration of Scrap, Waste, and By-Products
in Production: By-Products.

Material Waste Setup

If waste of particular materials is a usual output of the production of items, you may include waste costs in the
costs of a production order. To do this, on the Bill of Material (AM208000) form for the bill of material to be used
for the production order, you specify the waste percentage in the Scrap Factor column of the material row on the
Materials tab for an operation that contains this material.
You can also specify or change a scrap factor for a material in a particular production order in the Scrap Factor
column of the Materials tab for the appropriate material row of the operation on the Production Order Details
(AM209000) form.

Scrap Configuration Steps

To configure scrap in production, you do the following:
1. You decide if you would like to apply scrap costs to production order costs, post scrap costs to a specific GL
account, or store scrapped items in a warehouse. Based on this decision, you select a scrap action. For more
information, see the next section.
2. If you need to post scrap costs to a specific GL account or store scrap in a warehouse, you create at least
one reason code on the Reason Codes (CS211000) form. Shop-floor employees will specify this reason code
when entering the scrap quantity for operations of a production order. For details on the configuration of a
reason code, see the Reason Code for Scrap section below.
3. If scrapped items will be stored in a warehouse, you specify the warehouse and warehouse location to be
used by default in all new production orders. For details, see Configuration of Scrap, Waste, and By-Products
in Production: Scrap QuarantineConfiguration of Scrap and Waste in Production: Scrap Quarantine.
4. You decide whether the quantity of scrapped items must be included in the quantity of completed items.
For more information, see the Completion of Production Orders with Scrapped Items section below.

Scrap Actions
A scrap action determines the workflow that is used for the processing of scrapped items. When you configure
tracking of scrap in the system, you specify the scrap action for each work center in the Scrap Action Default box of
the General tab on the Work Centers (AM207000) form. Then you can change this value when you add operations to
a bill of material in the Scrap Action column of the Operations table on the Bill of Material (AM208000) form.
Depending on the way the scrapped items should be tracked, you can select any of the following options as the
scrap action to be used:
• No Action: Scrap costs are not posted on a specific GL account; users also do not need to record the
movement of scrapped items to a specific warehouse or warehouse location.
• Write-Off: The system will reduce the balance of the Work in Process GL account by the scrap costs and
post these costs to a separate GL account, which is specified in the reason code that a shop-floor employee
selects in a row with the scrapped quantity of a labor transaction on the Labor (AM301000) form or a move
transaction on the Move (AM302000) form. With this action, the system does not record the movement of the
scrapped items to a specific warehouse or warehouse location.
• Quarantine: The system will do the following:
• Reduce the balance of the Work in Process GL account by the scrap costs and post these costs to a
separate GL account, which is specified in the reason code that a shop-floor employee selects in a row
 Implementing Manufacturing | 515

with the scrapped quantity of a labor transaction on the Labor form or a move transaction on the Move
form.
• Record the movement of scrapped items to the specific warehouse or warehouse location that is
specified as a scrap source. For details, see Configuration of Scrap, Waste, and By-Products in Production:
Scrap QuarantineConfiguration of Scrap and Waste in Production: Scrap Quarantine
When a production manager creates a production order on the Production Order Maintenance (AM201500) form,
the system populates scrap actions with the values specified for the bill of material this production order is based
on. The manager can then change the scrap action for the needed operations of the production order in the Scrap
Action column of the Operations table on the Production Order Details (AM209000) form.

Reason Code for Scrap

You need to create a reason code if you would like the system to post scrap costs to a specific GL account—that is,
when scrap is recorded for operations with a scrap action of Write-Off or Quarantine. To configure a reason code for
scrap, you do the following:
1. On the Chart of Accounts (GL202500) form, you create a GL account of the Expense type to which the system
will post scrap costs.
2. On the Reason Codes (CS211000) form, you create at least one reason code with the usage of Production
and specify the GL account in its settings.

With the reason code set up in the system, when a user records scrap for an operation in a labor transaction on the
Labor (AM301000) form or a move transaction on the Move (AM302000) form, the user will be prompted to specify
the appropriate reason code along with the quantity of scrapped items if an operation has a scrap action of Write-
Off or Quarantine.

Completion of Production Orders with Scrapped Items

If your organization does not consider a production order to be completed until the full quantity of items to be
produced is recorded for the operation, you clear the Include Scrap in Completions check box on the Production
Preferences (AM102000) form. This may be needed in a make-to-order production environment where items are
produced by customers' requests and where the production department must produce the requested quantity of
items with a single production order linked to a sales order.
If a production process in your organization permits scrapped items to be included in the quantity of completed
items, you select the Include Scrap in Completions check box. With this check box selected, the system calculates
the sum of the completed quantity and the scrapped quantity for each operation of a production order and
changes the operation status to Completed on the Production Order Details (AM209000) form if this sum is equal
to the item quantity to be produced. The status of the entire production order is changed to Completed when all
operations of the order are completed.
For example, suppose that in your organization make-to-stock production is established, where items are produced
and sold later. In this case, a production order can be completed even if not all items have the required quality. The
rest of the items can be included in the next production order.

Configuration of Scrap, Waste, and By-Products in Production: Scrap

QuarantineConfiguration of Scrap and Waste in Production: Scrap Quarantine

Scrap is defined as quarantined if Quarantine is specified as the scrap action in an operation of a bill of material
on the Bill of Material (AM208000) form. When configuring tracking of quarantined scrap, you may need to define
the warehouse or warehouse location (or both) where the scrapped items will be stored. The choice of the place of
storage depends on the valuation method of the produced items and other factors, as described in this topic.
The needed features must be enabled on the Enable/Disable Features (CS100000) form as follows:
 Implementing Manufacturing | 516

• Multiple Warehouses
• Multiple Warehouse Locations

Scrap Storage and Valuation Methods

The most appropriate way to store quarantined scrapped items depends on the valuation method of the item to be
produced, which is specified in the Valuation Method box of the General tab on the Stock Items (IN202500) form.
The option selected in this box affects the storage of scrapped items as follows:
• FIFO or Average: With one of these options selected for the item, you can either store quarantined scrapped
items in a warehouse that contains only scrapped items or create a dedicated warehouse location in
an existing warehouse for these items. If you use a dedicated warehouse location, you select the Cost
Separately check box for this location on the Locations tab of the Warehouses (IN204000) form. This will
ensure that the cost of scrapped items does not affect the cost of produced items.
• Standard: With this option selected for the item, we recommend that you use a warehouse that is dedicated
to scrapped items. On the Item Warehouse Details (IN204500) form, for the item to be produced and the
scrap warehouse, you select the Override Standard Cost check box and specify the cost of the scrapped
item.

If you use the same warehouse as you use for completed items, the system will post the
scrap cost to the scrap GL account and will post any variance from the standard cost of the
completed items to the standard cost variance GL account.

• Specific: With this option selected for the item, you can use the same warehouse as is used for storing
produced items, but the last cost and average cost values of the produced item will include the scrap cost
adjustment. You can view these values on the Price/Cost tab of the Stock Items (IN202500) form.

Default Settings for Scrap Storage

When a user creates a production order on the Production Order Maintenance (AM201500) form, the system can
populate the Scrap Warehouse and Scrap Location boxes with default settings depending on the scrap source
specified for the production order type of the production order. The option is specified in the Scrap Source box on
the General tab of the Production Order Types (AM201100) form.
You select the option in this box (None, Item, Warehouse, or Order Type) based on the entity that provides the
default warehouse and warehouse location for scrap storage. You also specify the default values for the warehouse
and warehouse location in the settings of the entities involved in production; the system will copy these values to
each new production order of the type. The configuration steps depend on the entity to provide the default storage
settings for scrapped items as follows:
• If the default scrap warehouse and location depend on the type of the production order, you do the
following:
a. In the Scrap Source box of the Production Order Types form, you select Order Type.
b. In the Scrap Warehouse and Scrap Location boxes of the same form, you specify the warehouse and
the location for scrap accordingly. These values are copied to a production order of the type on the
Production Order Maintenance form.
• If the default scrap warehouse and location depend on the warehouse in which the produced item is stored
(that is, on the item-warehouse pair of the item), you do the following:
a. In the Scrap Source box of the Production Order Types form, you select Item.
b. In the Scrap Warehouse and Scrap Location boxes of the Manufacturing tab on the Item Warehouse
Details (IN204500) form, you specify the warehouse and the location, respectively, for scrap. These values
are copied to a production order of the type on the Production Order Maintenance form.
• If the default scrap warehouse and location are the same for all units of the produced item regardless of the
warehouse in which the item is stored, you do the following:
 Implementing Manufacturing | 517

a. In the Scrap Source box of the Production Order Types form, you select Item.
b. In the Scrap Warehouse and Scrap Location boxes of the Manufacturing tab on Stock Items (IN202500)
form, you specify the warehouse and the location, respectively, for scrap. These values are copied to a
production order of the type on the Production Order Maintenance form.

The system applies these settings if a record does not exist on the Item Warehouse Details
form for the stock item specified in the Inventory ID box and the warehouse specified in
the Warehouse box of the production order on the Production Order Maintenance form.

• If the default scrap warehouse and location are the same for all items stored in a particular warehouse, you
do the following:
a. In the Scrap Source box of the Production Order Types form, you select Warehouse.
b. In the Scrap Warehouse and Scrap Location boxes of the Manufacturing tab on Warehouses (IN204000)
form, you specify the warehouse and the location, respectively, for scrap. These values are copied to a
production order of the type on the Production Order Maintenance form.
• If you do not want a default scrap warehouse or location to be inserted into the production order, in the
Scrap Source box of the Production Order Types form, you select None. The system will not insert any
values in the Scrap Warehouse and Scrap Location boxes of the Production Order Maintenance form for a
production order of the type. A user can to specify these values manually, if needed.

Configuration of Scrap, Waste, and By-Products in Production: By-Products

If some of the production processes in your organization yield by-products, Acumatica ERP Manufacturing Edition
provides you with the ability to include by-products in a bill of material (BOM) and deduct their costs from the cost
of the production orders based on the bill of material. In the following sections, you can find information about
setting up by-products in the system.

Setup of By-Product Processing

When you need to set up the system so that by-products are included in production orders, you do the following:
1. If your organization uses lot control for by-products, you create a lot class on the Lot/Serial Classes
(IN207000) form. If by-product costs will be backflushed, you need to specify the assignment method
of When Received, the issue method of Sequential, and the settings for automatic generation of lot
numbers. For more information about lot and serial classes, see Items with Lot and Serial Numbers: General
Information.
2. On the Stock Items (IN202500) form, you create a stock item for each by-product. If you need to reduce the
cost of a production order by the by-product cost, on the Price/Cost tab, you specify the item cost according
to the valuation method specified for the item in the Valuation Method box of the General tab. If the cost
of the by-product must be excluded from the cost of a production order that includes the by-product, you
specify Standard Cost as the valuation method of the by-product and make sure that all costs are zero in the
Standard Cost section of the Price/Cost tab.
3. On the Bill of Material (AM208000) form, for a new or existing bill of material, you do the following:
a. In the Operations table, you add a row for the operation that will produce the by-product and specify all
the needed settings.
b. On the Materials tab, you add the stock item that represents the by-product as a material required for
this operation, and specify a negative quantity for the material in the Qty Required column.

You can add any number of rows for by-products.

 Implementing Manufacturing | 518

Example of a BOM with a By-Product

The following example demonstrates how you can specify the settings for by-products in a bill of material.
Suppose that all of the following are true:
• Your organization produces fresh orange juice, bottles the juice to bottles of 32 liquid ounces, and sells these
bottles to restaurants.
• Your organization sells the orange peels that remain aer juice squeezing to a company that produces
candied peels.
• The production of orange juice includes two operations—squeezing the juice, which includes peels as an
output, and bottling the juice.
A bill of material will describe the production of one bottle (or 32 liquid ounces) of orange juice. For the squeezing
operation, 4.4 pounds of oranges with a cost of $2.15 per pound are required; the quantity of peels remaining from
this quantity of oranges will be 1.1 pounds with a cost of $0.30 per pound. For the bottling operation, a bottle is
needed at a cost of $0.20 per unit as well as a lid at a cost of $0.05 per unit.
As a production manager, you need to create a bill of material on the Bill of Material (AM208000) form with the
materials (and their settings) displayed in the following table. (Assume that the production manager has already
defined the work centers for the operations and the noted materials in the system.)

Operation/Material Quantity UOM Unit Cost Planned Cost

For squeezing

Oranges 4.4 Pounds 2.15 9.46

Peels –1.1 Pounds 0.30 0.33

For bottling

Bottle 1 EA 0.20 0.20

Lid 1 EA 0.05 0.05

The planned cost of materials for a production order based on the bill of material will be calculated as follows:
$9.46 – $0.33 + $0.20 + $0.05 = $9.38.

Configuration of Scrap, Waste, and By-Products in Production: Implementation

ActivityConfiguration of Scrap and Waste in Production: Implementation Activity

In the following implementation activity, you will learn how to set up the processing of scrap in the system.

Story
Suppose that the production department of SweetLife Fruits & Jams has decided to record the quantities of juicers
that are damaged during assembly as scrapped items, write off scrap costs to a specific GL account, and store (or
quarantine) the scrapped juicers in a dedicated location of the production warehouse. Further suppose that the
quantity of completed items must exclude the quantity of scrapped items because juicers are usually assembled at
the request of customers who expect to receive all the juicers they ordered.
 Implementing Manufacturing | 519

Acting as an implementation manager, you will configure the system according to the requirements for tracking
scrap.

Configuration Overview
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
• On the Chart of Accounts (GL202500) form, the 51600, COGS - Scrap Expense GL account has been created.
• On the Warehouses (IN204000) form, the WORKHOUSE warehouse has been defined.
• On the Stock Items (IN202500) form, the CFJFRTSCR, PULPCONT1L, JUICECUP05L, MRBASE, FNSIEVE, and
GRDISC01 stock items have been defined.
In the company in which you have completed the previous lessons of the M100 Basic Manufacturing
Implementation training course, you have performed the following tasks for the purposes of this activity:
• On the Tools (AM205500) form, you have created tools for a screwdriver and hammer.
• On the Work Centers (AM207000) form, you have created the work center for the assembly operation.
• On the Production Order Types (AM201100) form, you have created the RO type.

Process Overview
In this activity, you will do the following:
1. On the Chart of Accounts (GL202500) form, make sure that the GL account for posting scrap costs has been
created.
2. On the Production Preferences (AM102000) form, review the setting that manages adding of the scrapped
quantity to the completed quantity.
3. On the Reason Codes (CS211000) form, create a reason code for scrap.
4. On the Warehouses (IN204000) form, create a warehouse location for scrap.
5. On the Production Order Types (AM201100) form, specify the default settings for scrap storage.
6. On the Work Centers (AM207000) form, for the work center where the assembly operation is performed,
specify the needed scrap action, which will be copied to new bills of materials that include the assembly
operation.
7. On the Bill of Material (AM208000) form, create a bill of material for juicer assembly.

System Preparation
Before you start performing the activity, do the following in a company with the U100 dataset preloaded:
1. As prerequisites to the current activity, perform the following activities in the specified order:
a. System Preparation for Manufacturing Implementation: Implementation Activity so that the needed settings
have been specified
b. Work Centers: Implementation Activity so that the work center for the assembly operation has been
created
c. Production Order Types: To Create a Regular Production Order Type so that the RO production order type
has been created
2. Sign in to this company as a system administrator with the gibbs username and 123 password.
 Implementing Manufacturing | 520

Step 1: Reviewing the GL Account for Scrap Costs

In a production system, you would need to create the GL account that will be used for posting scrap costs; this
account has been predefined in the U100 dataset for simplicity. In this step, you will make sure that this account has
been created. Do the following:
1. Open the Chart of Accounts (GL202500) form.
2. Make sure that the 51600, COGS - Scrap Expense GL account is listed in the table.

You will specify this GL account in the settings of a reason code that you will create for scrap.

Step 2: Reviewing a Production Management Setting

You will review the setting that manages addition of scrap quantity to the quantity of completed items in
production orders. Do the following:
1. Open the Production Preferences (AM102000) form.
2. In the Data Entry Settings section of the General tab, make sure that the Include Scrap in Completions
check box is cleared. This means that the scrapped quantity will not be included in the completed quantity
and that shop-floor employees will have to record a quantity of completed items for the assembly operation
that is equal to the quantity to produce in the production order.

Step 3: Creating a Reason Code for Scrap

To create a reason code that will provide a GL account for posting scrap costs, do the following:
1. On the Reason Codes (CS211000) form, add a new record.
2. Specify the following settings for the record:
• Reason Code: SCRAP
• Description: The reason code for scrap in manufacturing
• Usage: Production
• Account: 51600
3. On the form toolbar, click Save.

Step 4: Creating a Warehouse Location for Scrap

To create a warehouse location in the WORKHOUSE warehouse where scrapped items will be stored, do the
following:
1. On the Warehouses (IN204000) form, open the WORKHOUSE warehouse.
2. In the Location Table table of the Locations tab, click Add Row on the table toolbar.
3. In the row, specify the following settings:
• Location ID: SCRAP
• Description: Location for scrap
• Active: Selected
• Sort Location: Cleared
• Include in Qty. Available: Cleared
• Cost Separately: Selected
• Sales Allowed: Cleared
 Implementing Manufacturing | 521

• Receipts Allowed: Selected

• Transfers Allowed: Selected
• Production Allowed: Cleared
• MRP: Cleared
4. On the form toolbar, click Save.

Step 5: Specifying Scrap Storage Settings

Because the company plans to store all scrapped items in a single warehouse location, you will specify the default
warehouse and warehouse location for scrap in the settings of a regular production order type on the Production
Order Types (AM201100) form. Do the following:

1. Open the RO order type.

2. In the Scrap section of the General tab, specify the following settings:
• Scrap Source: Order Type
• Scrap Warehouse: WORKHOUSE
• Scrap Location: SCRAP
3. On the form toolbar, click Save.

Step 6: Specifying a Scrap Action for a Work Center

In this step, you will specify the Quarantine scrap action in the settings of the work center in which the assembly
operation is performed. This scrap action indicates that the system should write off the scrap cost to a specific GL
account and move the scrapped items to a specific warehouse location. Do the following:
1. On the Work Centers (AM207000) form, open the WCR10 work center.
2. In the Scrap Action Default box of the General tab, select Quarantine.
3. On the form toolbar, click Save.

Step 7: Creating a Bill of Material

To create a bill of material that includes the assembly operation, do the following:
1. On the Bill of Material (AM208000) form, add a new record.
2. In the Summary area, specify the following settings:
• Revision: A
• Hold: Selected
• Inventory ID: CFJFRTSCR
• Warehouse: WORKHOUSE
• Start Date: 1/1/2022
• End Date: Empty
• Description: A bill of material for the assembly of juicers and quarantined
scrap
3. On the form toolbar, click Save.
4. Add an assembly operation as follows:
a. On the toolbar of the Operations table (which is directly below the Summary area), click Add Row.
b. In the row, specify the following settings:
 Implementing Manufacturing | 522

• Operation ID: 010

• Work Center: WCR10
• Setup Time: 00:30
• Run Units: 3
• Run Time: 01:00
• Backflush Labor: Cleared
• Scrap Action: Quarantine (copied from the work center settings by the system)
c. On the Materials tab, add rows for the items listed in the following table, specifying the listed quantity
required for each.

Inventory ID Qty. Required

PULPCONT1L 1

JUICECUP05L 1

MRBASE 1

FNSIEVE 1

GRDISC01 1

d. On the Tools tab, add rows for the tools listed in the following table, specifying the listed settings for
each.
You created these tools in Production Cost Drivers: Implementation Activity.

Tool ID Qty. Required Unit Cost

HAMMER 1 0.02

SCREWDRIVER 1 0.20

5. On the form toolbar, click Save.

6. In the Summary area, clear the Hold box. The status is changed to Active.
7. On the form toolbar, click Save.

Configuring MRP

If your organization uses material requirements planning in Acumatica ERP Manufacturing Edition, you should
configure it so that the functionality operates in line with your business processes.
In this chapter, you will find details about configuring material requirements planning.

MRP Configuration: General Information

Acumatica ERP Manufacturing Edition provides you with the ability to use material requirements planning (MRP)
to satisfy customer requirements while maintaining optimal inventory levels in a warehouse. This functionality
 Implementing Manufacturing | 523

is available only when the Material Requirements Planning feature is enabled on the Enable/Disable Features
(CS100000) form.
In this topic, you will find information about configuring MRP in the system based on your business needs.

Learning Objectives
In this chapter, you will learn how to do the following:
• Create a master production schedule (MPS) type
• Specify system settings for the material requirements planning functionality
• Create MRP buckets
• Set up the stock items that are involved in MRP
• Set up the warehouses that are involved in MRP
• Configure the system to include transfers in MRP

Applicable Scenarios
You implement the material requirements planning functionality in the following cases:
• When you are initially implementing Acumatica ERP and the Material Requirements Planning feature is
included in your license
• When you have purchased a license that includes the Material Requirements Planning feature, and you need
to configure manufacturing in the existing Acumatica ERP system

Implementation of Material Requirements Planning

When you initially implement material requirements planning, you do the following:
• Create at least one MPS type on the MPS Type (AM203000) form. For details, see MPS Types.
• Specify MRP settings on the MRP Preferences (AM100000) form. For details, see MRP Configuration: System
Settings.
• Create MRP buckets on the MRP Buckets (AM201200) form. For more information, see MRP Buckets.
• Specify MRP settings for a warehouse and warehouse locations on the Warehouses (IN204000) form. For
details, see Warehouse and Warehouse Locations in MRP.
• Specify MRP and replenishment settings for stock items on the Stock Items (IN202500) or Item Warehouse
Details (IN204500) form. For more information, see Stock Items in MRP.
• Optionally, create an automation schedule for MRP regeneration on the Regenerate MRP (AM505000) or
Automation Schedules (SM205020) form. For details, see Automation Schedule for MRP Regeneration.

MPS Types
You use the MPS Type (AM203000) form to create and manage MPS types. An MPS type provides default settings
for master production schedule orders, such as the numbering sequence the system should use for the reference
numbers of the orders and the setting that indicates whether MPS orders depend on the production orders. If you
would like the item quantities in MPS orders to be reduced by the actual production orders that are scheduled to be
completed prior to the MPS planning date, you select the Dependent check box.

MRP Buckets
Data used in MRP—that is, supply and demand entities—is aggregated for particular periods or buckets, which can
be days, weeks, months, or years. You can define periods consisting of one interval or multiple intervals. The start
 Implementing Manufacturing | 524

date of a bucket is the ending date of the previous period. You use the MRP Buckets (AM201200) form to create and
manage buckets. In the Bucket column, you define the bucket as follows:
• For a future period, you specify a positive integer value.
• For a present period that starts today, you specify 0.
• For a past due period, you specify a negative integer value.

In addition to buckets for present and future periods, we recommend that you add at least one bucket
for a past due period (that is, a bucket with the minus sign).

You then use the created buckets on the MRP Requirements by Item (AM401200) form to view the planning results.

Warehouse and Warehouse Locations in MRP

For each warehouse involved in manufacturing, on the Warehouses (IN204000) form, you need to select the entities
that the system will consider during planning and the warehouse locations that store the items to be included in
planning.
You manage the set of entities, transactions, and documents included in planning by selecting or clearing the
corresponding check boxes in the MRP Settings section of the Manufacturing tab on the Warehouses form. If all
the check boxes are cleared, the warehouse is excluded completely from MRP.

If any of the following documents should be included in planning, you select the corresponding
check boxes in the General section on the MRP Preferences (AM100000) form: sales orders on hold,
purchase orders on hold, and production orders on hold.

For warehouse locations that should be included in planning, you select the check box in the MRP column of the
table on the Locations tab of the Warehouses form.

If the MRP check box is cleared for a warehouse location, then any production orders with this
location as the planned receipt location are excluded from MRP.

Stock Items in MRP

For each stock item you want to include in material requirements planning, the MRP Item check box should be
selected on the Manufacturing tab of the Stock Items (IN202500) form. In the MRP process, the system uses supply
and demand data for the combination of the stock item and warehouse. However, if there is a demand for an
item and warehouse and there is supply in another warehouse, an MRP exception of the Transfer Available type is
generated on the MRP Exceptions (AM403000) form. For details on including transfer orders in MRP, see the Transfer
Orders in MRP section in this topic.

Stock items with a status of Inactive or Marked for Deletion are excluded from planning. Items with any
of the following statuses are included in planning: Active, No Sales, No Purchases, and No Request.

For items involved in MRP, we recommend that you specify replenishment settings on the Manufacturing tab of the
Stock Items (IN202500) form if the item is stored in one warehouse or the Item Warehouse Details (IN204500) form
if the item is stored in multiple warehouses. In the Planning Settings section, you should specify a value in the
Safety Stock or Reorder Point box, depending on the value of the Stocking Method box on the MRP Preferences
(AM100000) form.
The system also uses the following values specified for the default vendor from the Vendor Details tab on the Stock
Items or Item Warehouse Details form:

• Add Lead Time (Days): The number of days added to the default vendor lead time.
• Min. Order Qty.: The minimum order quantity for the planned orders.
 Implementing Manufacturing | 525

• Lot Size: The item quantity of the lot; the system rounds up the quantity of the item in planned orders to the
nearest multiple of the lot size. For example, suppose that the demand is 37, the minimum order quantity is
20, and the lot size is 5; then the planned order quantity is 40.
• Max. Order Qty.: The maximum order quantity for planned orders. Multiple planned orders can be created
to cover the demand.

If an item does not have a default vendor, then the system uses the settings specified on the
Manufacturing tab of the Stock Items or Item Warehouse Details form during planning.

Transfer Orders in MRP

The system can be configured to create a planned order of the Planned Transfer Demand type if it finds information
about available item transfers during planning. A planning engineer can then convert the planned order to a
transfer order.
To configure the system to do this, for each item that can be transferred from another warehouse, you do the
following on the Item Warehouse Details (IN204500) form:
1. Open or create a record for a combination of the item and the source warehouse.
2. On the Replenishment tab, specify the following:
• Replenishment Source: Transfer
• Replenishment Warehouse: The transfer warehouse
If item transfer between the warehouses usually takes more than one day, you can specify the transfer lead time
that the system will use in MRP as follows:
1. Open the Manufacturing tab of the Warehouses (IN204000) form for the warehouse to which items can be
transferred. In the Transfer Lead Time table, add each warehouse from which items can be transferred
in the Replenishment Warehouse column, and specify the default transfer lead times between the
warehouses in the Transfer Lead Time column.
2. If transfer lead time is item-specific, on the Item Warehouse Details (IN204500) form, do the following:
a. Select the needed combination of an item and source warehouse.
b. In the Planning Settings section of the Manufacturing tab, select the Override check box to the right of
the Transfer Lead Time box, and specify the transfer lead time in the box.

The reference numbers of planned transfer orders are generated automatically and have the PLTR prefix.

Automation Schedule for MRP Regeneration

We strongly recommend that you set up an automation schedule to run MRP regeneration daily during the night or
early morning so that the results are available for the planners and buyers at the start of their work day. You should
set it to run aer all other scheduled processes that impact supply and demand are run to ensure that the MRP
process has the most up-to-date data. The following automated processes affect MRP:
• Any process that changes the on-hand quantity of inventory items, such as physical counts, adjustments,
purchase receipts, shipments, and production reporting
• Any process that creates demand or supply orders or updates these orders to change quantities or dates,
such as importing sales orders
• Inventory replenishment processes that calculate safety stock and reorder points
• Release of transactions or documents that were held during the day, such as invoices
You can create an automation schedule either on the Regenerate MRP (AM505000) form or on the Automation
Schedules (SM205020) form.
 Implementing Manufacturing | 526

MRP Configuration: System Settings

As a part of configuring material requirements planning in Acumatica ERP Manufacturing Edition, you need to
specify the system settings on the MRP Preferences (AM100000) form, as described in this topic.

MRP Settings
On the MRP Preferences (AM100000) form, you specify the following:
• Settings for generating exception messages (optional): In the Exceptions section, you can specify the time
periods (days before and days aer) that determine when the system should not generate the Defer and
Expedite exception messages. For details, see Exception Message Management.
• Forecast-related settings (optional): If you use forecasts, in the Forecast section, you can specify the
demand time fence within which the forecast will be excluded from demand data and the numbering
sequence for forecast identifiers. For more information about the demand time fence, see Time Fences in
MRP.
• Master production schedule settings (optional): In the MPS section, you can specify the default master
production schedule (MPS) type and the MPS time fence within which the MPS orders will be excluded from
data used for planning. For details about the MPS time fence, see Time Fences in MRP. For more information
about MPS types, see MPS Types.
• Planning order type: In the Plan Order Type box (General section), you select the default planning order
type (which should be created in advance) for the system to create planning orders during MRP.
• Grace period (optional): In the Grace Period box (General section), you can specify the time period within
which the supply orders will be regarded as satisfying the demand date. For details, see Grace Period in
MRP.
• Stocking method: In the Stocking Method box (General section), you select the method (either Reorder
Point or Safety Stock) the system will use for replenishing the demanded items, which is initiated by MRP
process.
• Settings for including documents on hold in planning: By using the Include On Hold check boxes in the
General section, you determine if sales orders, purchase orders, and production orders on hold must be
considered by the system during planning. For more information, see Documents On Hold in MRP.
• The setting determining the calculation of manufacturing times: You decide if you want the system to
calculate lead times dynamically for a planned order or use the fixed lead time specified for an item by
clearing or selecting, respectively, the Use Fixed Manufacturing Times check box (General section).
• An indicator of whether expired blanket sales orders must be included in MRP: You decide if you want to
include blanket sales orders that are expired in MRP by clearing or selecting the Include Expired Blanket
Sales Orders check box (General section).
• Consolidation settings (optional): The system can consolidate items with the same ID from multiple demand
documents into a single planned order during MRP. To configure this, you select the Use Days of Supply
to Consolidate Orders check box in the Consolidation section. You can also set up the system so that it
consolidates demand documents with deferred requested dates. For details, see the Consolidation of Items
in Multiple Demand Documents section below.

Lead Times in MRP

When the system creates planning orders during material requirements planning on the Regenerate MRP
(AM505000) form, the system calculates an action date for each order. For a planning order to be converted to a
production order, the action date is the date when the production must start. For a planning order to be converted
to a purchase order, the action date is the promise date, that is, the date when materials must be available in a
warehouse.
 Implementing Manufacturing | 527

The system calculates action dates for planning orders by using lead times, which can be any of the following:
• Purchase lead times, which the system uses for planning orders for materials to be purchased from vendors.
For details, see the Lead Times for Purchased Items section below.
• Manufacturing lead times, which the system uses for planning orders for materials to be produced.
Depending on the settings you have specified, it uses one of the following:
• Fixed manufacturing lead times if the appropriate settings are specified. For more information, see the
Fixed Manufacturing Lead Time section below.
• Variable manufacturing lead times if fixed lead times are not configured. For details, see MRP
Configuration: Variable Manufacturing Lead Times.

Lead Times for Purchased Items

In material requirements planning, the system uses purchase lead times to calculate the action dates for planning
orders with the Purchase source. Purchase lead times are always fixed and do not depend on the order quantity, so
you should specify these times based on a typical order size. You set up the purchase lead times as follows:
1. You specify the calendar that the system will use for the action dates in the Purchase Calendar ID box on
the MRP Preferences (AM100000) form.
2. For each stock item to be purchased, you do one of the following on the Stock Items (IN202500) form:
a. If a default vendor is selected on the Vendors tab, you make sure that the lead time for this vendor is
specified in the Lead Time (Days) column.
b. If no default vendor is selected for the stock item or the lead time is not specified for the vendor, you can
specify the time in days in the MFG Lead Time box on the Manufacturing tab, and the system will use
this time as the purchase lead time.

For example, suppose that the production must start on January 30, which is a working day. The purchase lead
time is 10 days. Then the action date for the planning order must be January 21. Further suppose that January 21 is
a Saturday, which is a non-working day, according to the work calendar. Then the system moves the action date to
January 20 because it is the nearest working day.

Fixed Manufacturing Lead Time

You may want the system to calculate manufacturing lead times by using fixed values for each stock item. This
means that the lead time does not depend on the quantity of produced item and is always the same. In this case,
you do the following to set up the system:
1. On the Production Preferences (AM102000) form (Scheduling section), in the Fixed MFG Calendar ID box,
you specify the work calendar the system will use for calculating the action dates for planning orders.
2. In the Fixed MFG Units box in the same section of the form, you select the time unit—days or hours—the
system will use for the lead time.
3. For each stock item to be produced, on the Stock Items (IN202500) form, you specify the time required to
produce the item in the MFG Lead Time box on the Manufacturing tab.
4. If the manufacturing time for any item is warehouse-specific, on the Item Warehouse Details (IN204500)
form, you specify the time required to produce the item in a particular warehouse in the MFG Lead Time
box on the Manufacturing tab.
5. If fixed manufacturing times must be used for all production orders by default, on the Production
Preferences (AM102000) form, you select the Use Fixed Manufacturing Times check box in the Scheduling
section.
6. If fixed manufacturing times must be used in MRP, on the MRP Preferences (AM100000) form, you select the
Use Fixed Manufacturing Times check box in the General section.
 Implementing Manufacturing | 528

7. If you need to use fixed manufacturing times for a particular production order, on the Production Order
Maintenance (AM201500) form, you select the Use Fixed Mfg Lead Times for Order Dates check box on the
General tab.

Exception Message Management

When the system performs material requirements planning, it uses the requested dates specified in demand
orders and finds out if these dates can be satisfied according to the lead times of suppliers (for either your own
manufacturing or that of your vendors). To help you decide if order dates (either the shipping date for the customer
or the promise date for suppliers) should be adjusted, the system generates exception messages on the MRP
Exceptions (AM403000) form for orders with items that can be delivered too early or too late.

To manage the generation of exception messages, you specify the values in the Days Before and Days Aer boxes
of the Exceptions section on the MRP Preferences (AM100000) form. Both values must be less than or equal to the
value in the Grace Period box in the General section. The greater the values, the fewer exception messages are
generated. If the values are zero, then messages are generated whenever a supply date does not cover the demand.
The Days Before value represents the number of days that are acceptable for items to be supplied before the date
requested by a customer. If the items in the order can be supplied earlier than the requested date minus the Days
Before value, the system generates the Defer exception message on the MRP Exceptions form. If most of the lead
times of your vendors are a week or less, then 7 days would be the appropriate value for the Days Before setting.
When demand changes, you would want your vendor to defer a delivery to a later date. If the lead times of the
vendors are larger, then you need to consider how oen you want to ask your vendors to adjust their promise
dates.
The Days Aer value represents the number of days that are acceptable for items to be supplied aer the date
requested by a customer. If the items in the order will be supplied later than the requested date plus the Days
Aer value, the system will generate an Expedite exception message. This value is more critical than the Days
Before value because a late delivery from a supplier impacts your ability to manufacture and ship to customers. We
recommend that you use a value of 2 to 5 days. MRP will not create a planned order to cover demand if the supply
order is due within the grace period, but an Expedite exception message is generated to let the planner know that
the supply order needs to be expedited so the inventory item is available when it is needed. If the order cannot be
expedited, then the orders that require the inventory item need to be rescheduled to show that they will be late.

Time Fences in MRP

You can specify the demand time fence and the MPS time fence to control which data the system will use during
planning.
The demand time fence is the time period from the MRP run date during which the forecast is no longer included
in the total demand and the projected available inventory calculations. During this period, the system considers
only customer orders when planning materials. Beyond this period, the greater value of dependent forecasts and
actual demand drives MRP. You choose the value of the demand time fence based on how many days in advance
customers place orders; the forecasts are used by invoices released and sales orders with ship dates within the
starting and ending dates of each forecast. For example, if customers place orders at the beginning of every month
and no more orders are expected, you may not want to consider the remaining forecast in MRP demand. You
specify the value of the demand time fence in the Demand Time Fence box of the Forecast section on the MRP
Preferences (AM100000) form.

Similarly, the MPS time fence is the time period from the MRP run date during which the system excludes MPS
orders for which production orders have not been created from the data used for planning. You specify the value of
the MPS time fence in the Time Fence box of the MPS section on the MRP Preferences form.
 Implementing Manufacturing | 529

Grace Period in MRP

The grace period is the number of days aer the requested date of an item in a demand order within which the item
can be received in inventory (purchased from a vendor or produced internally) and still be considered as satisfying
the requested date.
During planning, for each demand date (that is, the requested date of an item in a sales order), the system
determines if a supply order (that is, a purchase or production order) within the grace period can fully satisfy the
demand. You specify the grace period in the Grace Period box on the MRP Preferences (AM100000) form. If the
demand is not fully satisfied by supply orders within the grace period, then the system creates a planned order to
satisfy the remaining demand.
For example, suppose that you specify the grace period as 30 (which represents 30 calendar days). Further suppose
that you have two sales orders, the first for 10 items with October 6 as the requested date and the second for
another 10 items with October 10 as the requested date. Your vendor can deliver the materials required to produce
the item on November 9. This supply will satisfy the sales order dated October 10 and will not satisfy the sales order
dated October 6.
When a due date of a supply order is earlier than the demand date, the system does not consider the grace period
and it satisfies all demands because there is no need to create a planned order.
You should consider your demand and supply patterns, supply lead times, and minimum order quantities to
determine an appropriate value for the grace period.
Regardless of the grace period value, exception messages are always generated to expedite or defer supply orders
based on the values of the Days Before and Days Aer boxes on the MRP Preferences form.

Documents On Hold in MRP

You can decide if sales orders, purchase orders, and production orders that are on hold should be considered by
the system when planning materials. We generally recommend that you include the documents on hold in MRP. To
do this, you select the Include On Hold Sales Orders, Include On Hold Purchase Orders, and Include On Hold
Production Orders check boxes in the General section of the MRP Preferences (AM100000) form.
You should not include the on-hold orders in MRP if any of the following conditions is true in your company:
• Sales orders are always prepaid, and they are on hold until they are paid; when the orders are paid, the
dates are set appropriately. Another case is when customers frequently cancel orders or change the dates
and new dates should be specified in the order. In these cases, the Include On Hold Sales Orders check box
should be cleared.
• Production orders are placed on hold when the sales orders are in the process of being canceled or changed
(these orders could include configured items). In this case, the Include On Hold Production Orders check
box should be cleared.
• The purchasing department creates orders far in advance with suppliers and oen needs to await
confirmation of delivery dates and quantities from the supplier. In this case, the Include On Hold Purchase
Orders check box should be cleared.

Consolidation of Items in Multiple Demand Documents

During material requirements planning, if multiple demand documents (such as sales orders) contain the same
item and have a due date (such as a required date in a sales order) that is within a specific time period, the system
can consolidate items from these documents into a single planned order. To implement this behavior, you select
the Use Days of Supply to Consolidate Orders check box in the Consolidation section of the MRP Preferences
(AM100000) form.
With this check box selected, for short-term planning, you specify the time period for consolidating items in the
Days of Supply box in the following locations for the needed entities:
 Implementing Manufacturing | 530

• The General tab (MRP Consolidation section) of the Item Classes (IN201000) form for an item class. The
system copies this setting to all newly created stock items for which this class is selected,
• The Manufacturing tab (Planning Settings section) of the Stock Items (IN202500) form for a stock item.
• The Manufacturing tab (Planning Settings section) of the Item Warehouse Details (IN204500) form for an
item–warehouse pair. Thus, for an item that is stored in multiple warehouses, you can specify a different
number of days for the item in each warehouse.
For example, suppose that the Days of Supply setting for a juicer is specified as 7. Further suppose that two sales
orders containing the juicer have been created with the requested date within the same week. When MRP is run,
the system will group juicers from these two orders in one planned order as a potential production order, instead of
generating two planned orders, one per sales order.
If sales managers create long-term sales orders for some customers to provide a discount, you can configure
the system to use a long-term consolidation bucket, and you can specify settings that are specific to long-term
consolidation. To do this, in the Consolidation section of the MRP Preferences form, you first select the Use Long-
Term Consolidation Bucket check box. On the form, you then specify the number of days aer which the system
starts consolidating items from demand documents in the Consolidate Aer (Days) box and the number of days
within which the requested dates in the demand documents must fall in the Bucket (Days) box.
If you use forecasts for planning item demand, the system also consolidates forecast records during MRP. For
example, suppose that weekly forecast records exist for the following quarter. Further suppose that the value of
the Consolidate Aer (Days) box is 45, and the value of the Bucket (Days) box is 30. In this case, when performing
MRP, the system will create a single planned order for all forecast records with dates starting from today's date plus
45 days and within 30 days aer the starting date of consolidation.

MRP Configuration: Variable Manufacturing Lead Times

When the system calculates demand for materials used in production on the Regenerate MRP (AM505000) form,
the system creates planning orders for materials that must be produced. For each planning order, the system
specifies an action date, which is the date when the production must start. To calculate the action dates, the
system calculates the lead times required to produce the needed quantity of materials. The variable manufacturing
lead time depends on the quantity of produced items in production orders for which material requirements
planning (MRP) is performed. This lead lime consists of lead times of operations in bills of material that provide the
production routing for the materials. You specify the settings that determine the operation lead times on the Bill of
Material (AM208000) form.

In the following sections, you can find details about the variable manufacturing lead times.

Components of the Variable Manufacturing Lead Time

For each operation of a bill of material, you specify the settings that determine variable lead times in the
Operations table of the Bill of Material (AM208000) form. The system uses the following components of operation
lead times during calculation of action dates of planning orders for materials to be produced:
• Worker throughput: The quantity of item units produced during a certain period of time when machines
are not involved in the operation. The system determines that machines are not involved when Crew Size is
selected in the Basis for Capacity box on the Work Centers (AM207000) form for the work center specified in
the operation row. In the Run Time column of the row, you specify the period of time (such as 01:00 for one
hour), and in the Run Units column, you specify the quantity of item units that workers produce during this
period of time (such as 5).
• Machine throughput: The quantity of item units produced during a certain period of time when machines
are used in the operation. The system determines that machines are involved when Machines is selected in
the Basis for Capacity box on the Work Centers form for the work center specified in the operation row. In
the Machine Time column of the row, you specify the period of time, and in the Machine Units column, you
specify the quantity of item units that workers produce during this period of time by using the machine.
 Implementing Manufacturing | 531

• Setup time: The time it takes to prepare to start the operation, which is specified in the Setup Time column
of the operation row. For example, to prepare for the operation, workers may need to print drawings or take
parts from a stock room. Based on this value, the system adds a fixed labor cost to the cost of the produced
item, regardless of the size of the order.

The following components that also determine variable manufacturing lead time are not considered
during the calculation of action dates for planning orders in MRP:
• Queue time, move time, and finish time, which you specify in the Operations table of the Bill of
Material (AM208000) form
• Work center capacity, which is calculated as Crew Size * Efficiency, where crew size
and efficiency are specified on the Shis tab of the Work Centers (AM207000) form)

Configuration of Variable Manufacturing Lead Time

You configure the variable manufacturing lead time to be used in material requirements planning as follows:
1. On the Work Centers (AM207000) form, you specify the following settings for each work center that will be
specified in an operation of the bill of material:
• In the Basis for Capacity box on the General tab, you specify which throughput settings (run units and
time, or machine units and time) the system will use for operations in this work center.
• In the Calendar ID column on the Shis tab, you specify the work calendar the system will use for
calculating lead times for operations performed in this work center.
2. If machines are used in any work center, on the Machines (AM204500) form, make sure that the calendar
specified for each machine has the same working hours as the work center to which the machine is
assigned.
3. On the Bill of Material (AM208000) form, in the Operations table, you specify the lead time components for
each operation when creating a bill of material.

Calculation of the Manufacturing Lead Time

When calculating action dates for planning orders, the system calculates the time required for performing each
operation in the routing by using one of the following formulas (depending on whether run time or machine time is
used).

Setup Time + (Qty. to Produce * (Run Time / Run Units))

Setup Time + (Qty. to Produce * (Machine Time / Machine Units))

If the value of Run Units or Machine Units is 0, then the parts of the formula that include the units are 0.
For example, suppose that a bill of material for producing wooden chairs includes two operations with the settings
specified in the following table. The throughput for the paint operation is one chair per hour, and the throughput
for the assembly operation is five chairs per hour.

Operation Setup Time Run Units Run Time

Paint 01:00 1 01:00

Assembly 00:00 5 01:00

Also suppose that the work centers where the operations take place have an 8-hour working day and Saturday
and Sunday as non-working days. Further suppose that a sales manager created a sales order for the production
of 10 chairs with the customer requiring the order by January 30 (which is a working day). A production manager
 Implementing Manufacturing | 532

runs material requirements planning to receive the list of planning orders to meet the date when the customer
requires the chairs. To produce 10 chairs, it will take 11 hours for the paint operation and 2 hours for the assembly
operation—13 hours in total. If the production must end on January 30, then the start date of the planned order for
production will be January 29 if it is a working day according to the work calendar.

MRP Configuration: Prerequisites

Before starting to configure the material requirements planning (MRP) functionality, you must be sure that the
system has been configured properly and that all required entities have been created, as described in the following
sections.

Enabling the Needed Features

On the Enable/Disable Features (CS100000) form, the Material Requirements Planning feature must be enabled.

Configuring the System

You need to make sure the following tasks have been performed in Acumatica ERP before you begin to implement
MRP:
• On the Numbering Sequences (CS201010) form, a numbering sequence for forecast identifiers has been
created.
• On the Numbering Sequences form, a numbering sequence for the identifiers of master production schedule
(MPS) orders has been created.
• On the Numbering Sequences form, a numbering sequence for the identifiers of planning orders has been
created.

We recommend that you create a separate numbering sequence for planning orders to
distinguish these orders from regular production orders in the system.

• On the Production Order Types (AM201100) form, at least one production order type with the Planning
function has been created.
• On the Work Calendar (CS209000) form, a calendar that MRP will use to calculate action and promise dates
from vendor lead times has been created.

MRP Configuration: Implementation Activity

In this implementation activity, you will learn how to specify the system settings related to material requirements
planning (MRP).

Story
Suppose that you are an implementation manager who needs to prepare the system for material requirements
planning.
According to the business processes of SweetLife Fruits & Jams, exception messages must be generated for supply
orders dated 7 days before the requested date of a demand order and supply orders dated 5 days aer this date.
The demand time fence and MPS time fence should be 30 days, the same as the grace period for supply orders.
You will use the Reorder Point stocking method for replenishing materials. Sales orders, production orders, and
purchase orders on hold must be considered by the system during planning. Also, the system should generate lead
times dynamically for planned orders.
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You need to create periods (or buckets) for MRP to aggregate demand and supply data. You will have 13 weekly
periods, 1 monthly period, and 1 yearly past due period.
You need to make sure that the warehouse involved in manufacturing has been configured properly for MRP.
Also, for stock items that are used as materials, you need to specify replenishment settings, such as the safety stock
quantity, the reorder point, the minimum order quantity, and the maximum order quantity.

Configuration Overview
The following entities, which you will use in this activity, have been predefined in the U100 dataset:
• On the Numbering Sequences (CS201010) form, the AMMPS and AMFCST numbering sequences
• On the Work Calendar (CS209000) form, the MAIN calendar
• On the Warehouses (IN204000) form, the WORKHOUSE warehouse
• On the Stock Items (IN202500) form, the JUICECUP1L stock item
In the company in which you have completed the previous lessons of the M100 Basic Manufacturing
Implementation training course, you have created the PL production order type on the Production Order Types
(AM201100) form.

Process Overview
In this activity, to specify settings related to MRP, you will do the following:
1. On the MPS Type (AM203000) form, create an MPS type to be used in the MRP settings.
2. On the MRP Preferences (AM100000) form, specify the system settings that affect the MRP process.
3. On the MRP Buckets (AM201200) form, create the needed buckets for MRP.
4. On the Warehouses (IN204000) form, review the settings of the WORKHOUSE warehouse related to MRP.
5. On the Stock Items (IN202500) form, specify the settings of the JUICECUP1L stock item that will be used by
the system during MRP.

System Preparation
Before you start specifying MRP settings, do the following:
1. As prerequisites to the current activity, perform the following activities in the specified order:
a. System Preparation for Manufacturing Implementation: Implementation Activity so that the needed settings
have been specified in a company with the U100 dataset preloaded
b. Production Order Types: To Create a Planning Production Order Type so that the order type for planning
orders has been created in a company with the U100 dataset preloaded
2. Sign in to the company in which the prerequisite activities have been performed as a system administrator
by using the gibbs username and 123 password.
3. Make sure that the Material Requirements Planning feature has been enabled on the Enable/Disable Features
(CS100000) form.

Step 1: Creating an MPS Type

To create an MPS type, do the following:
1. Open the MPS Type (AM203000) form.
2. On the form toolbar, click Add Row.
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3. In the new row, specify the following settings:

• Type ID: MPS
• Description: Master production schedule
• Numbering Sequence: AMMPS
• Dependent: Selected
4. On the form toolbar, click Save.

Step 2: Specifying General MRP Settings

To specify the system settings that affect MRP, do the following:
1. Open the MRP Preferences (AM100000) form.
2. In the Exceptions section, specify the following settings:
• Days Before: 7
• Days Aer: 5
3. In the Forecast section, specify the following settings:
• Demand Time Fence: 30
• Numbering Sequence: AMFCST
4. In the MPS section, specify the following settings:
• Time Fence: 30
• Default Type: MPS
5. In the General section, specify the following settings:
• Plan Order Type: PL
• Grace Period: 30
• Stocking Method: Reorder Point
• Purchase Calendar ID: MAIN
• Include On Hold Sales Orders: Selected
• Include On Hold Purchase Orders: Selected
• Include On Hold Production Orders: Selected
• Use Fixed Manufacturing Times: Cleared
• Include Expired Blanket Sales Orders: Cleared
6. On the form toolbar, click Save.

Step 3: Creating the MRP Buckets

To create the needed MRP buckets, do the following:
1. Open the MRP Buckets (AM201200) form.
2. On the form toolbar, click Add New Record.
3. In the Summary area, specify the following settings:
• Bucket ID: MAIN
• Description: Main bucket
• Active: Selected
4. In the Buckets table, add a bucket for a yearly past due period as follows:
a. On the table toolbar, click Add Row.
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b. In the new row, specify the following settings:

• Bucket: -1
• Value: 1
• Interval: Year
5. Add 13 buckets for weeks as follows:
a. On the table toolbar, click Add Row.
b. In the new row, specify the following settings:
• Bucket: 1
• Value: 1
• Interval: Week
c. Add the other 12 rows, and in the Bucket column, type 2 in the next row, type 3 in the row aer that,
and continue this pattern through 13 in the last row. You enter 1 in the Value and Week in the Interval
columns for each of these rows.
6. Add a bucket for a month as follows:
a. On the table toolbar, click Add Row.
b. In the new row, specify the following settings:
• Bucket: 14
• Value: 1
• Interval: Month
7. On the form toolbar, click Save.

Step 4: Reviewing the MRP Settings for a Warehouse

You will review the MRP-related settings that have been predefined for the WORKHOUSE warehouse in the U100
dataset. Do the following:
1. Open the Warehouses (IN204000) form.
2. In the Warehouse ID box of the Summary area, select WORKHOUSE.
3. In the MRP Settings section of the Manufacturing tab, make sure that all check boxes are selected. This
means that all documents and entities will be considered by the system during the MRP process.
4. On the Locations tab, make sure that the check boxes in the MRP column are selected for the MAIN, MGI,
and MTL rows in the table. This means that these locations are involved in the MRP process.

Step 5: Specifying MRP Setting for Stock Items

You will specify the MRP-related settings for the JUICECUP1L stock item, which has been predefined in the U100
dataset. In a production environment, you would need to specify similar settings for all stock items that will be
used for MRP. Do the following:
1. On the Stock Items (IN202500) form, select the JUICECUP1L item.
2. On the Manufacturing tab, do the following:
a. In the General section, make sure that the MRP Item check box is selected.
b. In the Planning Settings section, select the Override check box to the right of the Safety Stock box. The
box becomes available.
c. In the Safety Stock box, specify 3.
d. Select the Override check box to the right of the Reorder Point box. The box becomes available.
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e. In the Reorder Point box, specify 5.

3. On the Vendors tab, do the following in the row for the JALOOZA vendor:
a. Make sure that in the Lead Time (Days) column, the 7 value has been specified.
b. In the Min. Order Qty. column, specify 2.
c. In the Max. Order Qty. column, specify 10.
4. On the form toolbar, click Save.

You have gained experience with specifying the system settings that are related to material requirements planning.