General Ledger Sets Priority Modes 0 And 1

There are currently two priority modes offered in CAPITAL. Priority modes determine under what circumstances general ledger sets are selected. The standard or default general ledger set selection method is referred to as mode 0. Mode 1 is a variation on mode 0.

In Mode 1, during stock related activities (such as invoicing or purchasing) CAPITAL will first try to locate the general ledger set assigned to the stock item. If this is not specified, the general ledger set assigned to the stock group is located. So far, this is the same as Mode 0. In Mode 0, however, if no stock group general ledger set is specified, CAPITAL defaults to selecting set "0" (zero).

In Mode 1, CAPITAL will proceed further by examining the general ledger set assigned to the customer or supplier account. If this is not specified, CAPITAL will try to locate the set assigned to the currency of the account. (This need not apply if you are not running foreign currencies.) Only then, and if this is not specified, will CAPITAL default to set "0".

Dissect Stock Sales By Customer - Mode 1

Use Mode 1 when you wish to split stock sales in your general ledger by customer. For example, you may have two departments, each with its own set of customers. In Mode 1, by assigning a general ledger set to each customer, but none to your individual stock items or stock groups, you will be able to produce a "total sales" by department dissection, while sharing a common inventory. It will also give you more automated control over inventory costing. You may wish, for example, to divide purchasing into "landed costs", "shipping costs" and so forth. These dissections could be made more or less automatically for you, in Mode 1.

The general ledger set mode can be controlled by running the INSTALLATION Workshop program and by selecting from the menu Install|Advanced|GL & Foreign Currency. Then change the GL Set Priority Mode to desired level.

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Related Topics:

The Priority Hierarchy