Default accounts (POP settings)

Use the following settings to choose the nominal accounts you want to use to post your profit and loss and balance sheet values.

Find this screen

Open: Purchase Order Processing > POP Utilities > System Set Up > POP Settings | Default Accounts.

Stock nominal account

You can analyse purchases by suppliers to determine whom you have bought from, or by item type to find out what you have sold.

• To analyse purchases by supplier, select Supplier account.

  Stock values are posted to the nominal account specified on the supplier's record stored in the Purchase Ledger.

• To analyse purchases by item, select Stock item stock account.

  Stock values are posted to the nominal account specified on the stock item.

• Select Use same cost centre and department as supplier account to use cost centre breakdown for your stock postings.

  Stock values are posted to stock nominal accounts set up by cost centres and departments. This uses the account reference section of the nominal code as specified for the stock item, and then uses the cost centre and department codes set on the supplier's account.

  This allows more flexibility and you can produce a detailed analysis of your purchases when you are using cost centre breakdown.

Nominal code for standard cost variances

This option is only relevant if you are using the standard costing method for any of your stock items.

• Specify the nominal account you want to post your Standard Cost Variances.

  When you use standard costing, the cost of the item is specified on the item record stored in the Stock Control module. When the actual buying price of the item differs from the specified cost price, cost variances can occur. The cost variances occur in your Balance Sheet on the stock nominal account and also in your Profit and Loss Statement on the cost of sales nominal account. You can use the Standard Cost Variances option to post values to the Nominal Ledger to correct the anomalies.

• If you are using cost centre breakdown, select Analyse balance sheet postings by cost centre and department to analyse your standard cost variances by cost centre and departments.