ITrack/Enterprise/Accounting

ITrack Enterprise uses a very flexible accounting system. It is designed to allow for both complex and simple general ledger practices and to easily integrate with any sort of external general ledger based accounting package.

For details about an individual screen's accounting process, refer to that screen's page.

Accounts

The Accounting Screen in ITrack Enterprise allows a user (probably an administrator) to set up a chart of accounts. This is done in the Accounting screen on the Accounts tab. Accounts in ITrack have a number, a name, a description, and a type. For example:

Name: Accounts Receivable
Number: 1000
Description: An account that shows how much money the company is owed from customers.
Type: Asset

Categories

Every item in inventory and every kind of labor used is assigned a "GL Category". A "GL Category" defines the kinds of accounts that that item needs to affect in different situations. These situations are called "GL Contexts" and are described below.

Some examples of GL Categories that people might use:

• New Parts
• Used Parts
• Labor

Contexts

The software defines certain contexts, or situations where accounting applies. A complete list of the contexts is here:

• Core Sale - Occurs for every inherent core on a sales order that affects inventory when it is finalized
• Core Return - Occurs for every dirty core returned on a sales order that affects inventory when it is finalized
• Core Transfer - Occurs for every core as it is transferred on a transfer order
• Core Purchase Return - Occurs when cores are returned to vendors
• Purchase - Occurs when an item is received from a purchase order
• Purchase Return - Occurs when an item is returned on a purchase order
• Return - Occurs when an item is returned on a sales order
• Sale - Occurs when an item is sold on a sales order
• Transfer - Occurs when an item is transferred on a transfer order
• Work In Progress - Occurs for each line and labor item on a work order whenever it is saved
• Work Order Consumption - Occurs for each line and labor item on a work order when it is finalized
• Work Order Production - Occurs for the master record on a work order when a work order is finalized
• Work Order Sold - Occurs for each line and labor item on a work order when it is finalized

Each combination of category and context allows the definition of four accounts. The user can set these up in the Accounting screen on the Categories tab:

• Transaction Debit Account - Debits this account (usually by price)
• Transaction Credit Account - Credits this account (usually by price)
• Inventory Debit Account - Debits this account (usually by cost)
• Inventory Credit Account - Credits this account (usually by cost)

For certain categories in certain contexts, it might not make sense to fill in an account. For instance taxes are ordinarily applied on the transaction side rather than the inventory side.

In general, for categories that represent inventory items, the Inventory Credit Account should always be the account that represents the value of that inventory item.

Transactions

Whenever the General Ledger is affected, all of the entries are grouped into a transaction. The transaction verifies that all of the debits and all of the credits are equal, that balance being the fundamental rule of GL based accounting. The transaction also applies a timestamp recording the exact second that the accounting occurred and exactly how much money was involved. It also allows for user comments.

Entries

Each accounting entry is stored as a single record and therefore can be copied into whatever accounting system the user chooses (assuming their accounting package has some mechanism to either import or directly input data).

Accounting Packages

ITrack Enterprise was designed specifically with Sage's Mas90 accounting system in mind.