Adding a Default G/L Account by Product Type

To set up G/L Accounts by Product Type, complete the following steps:

1. Navigate to the Business Unit Profile.
2. Open the G/L Accounts tab. You may have to hover over the More tab to view the child form fly-out menu and click the G/L Accounts hyperlink to open this tab.
3. Expand the default gl accounts child form to view the list of currently available Default G/L Accounts.
4. Click the Add icon located on the right side of this child form.

   Add Icon on the Default G/L Accounts Child Form Highlighted

   The Add - Default G/L Account pop-up window will open.

5. Complete the following fields as needed:

   Field Name	Required?	Description
   company	Required	The company field will default with the Business Unit you are currently using, however you can expand the company drop-down menu and select a different Business Unit if desired.
   product type	Required	Expand the Product Type drop-down menu and select the product type for which you are assigning a default G/L Account. Every Product Type that you added in the Inventory Module Setup will be available for selection in this drop-down list.
   account fields	Optional	Select the appropriate G/L Account from each account drop-down list that applies for this Product Type. When you select each drop-down list, all of the G/L Accounts that you set up on your Business Unit profile are listed. The key is to link the proper account to that particular product type.

6. Click the Save button.

It is not required that a Default G/L Account be specified for each account type.

The Default G/L Account information for each Product Type displays in the default gl accounts child form. Only accounts that apply or reference that Product Type were added. As you can see, certain G/L Accounts were not set to default for certain Product Types.

Default G/L Accounts Displayed for Various Product Types

Here are some examples where you might not assign a Default G/L Account for each Account Type.

Example 1: Revenue Accounts: Most products you add will have different or their own Revenue Accounts. Setting up a default for them could cause confusion and add more clicks or keystrokes, which is inefficient. Some Product Types however, could have all of the revenue recorded in the same G/L Account regardless of the different actual products. For example, merchandise. A tshirt, coffee mug, and book are all considered "Merchandise Product Type" and therefore adding that Revenue G/L Account as the default could be a good idea.

Example 2: Deferred Accounts: Event Registrations, Membership Dues, and Subscriptions are examples of Product Types where the revenue is typically or always deferred. Conversely, when you purchase Merchandise, Kits, Bundles, and Publications, the revenue is immediately recognized, hence those Product Types would have no need for a defaulted G/L Account.

Example 3: Inventory/COGS: You would only need to set up default G/L Accounts for Product Types that track inventory and cost of goods sold (cogs) for example, Merchandise, Kits, etc. Product Types like Events and Exhibits for example, are not inventory items and would not need these accounts defaulted.