Required GL Accounts: Overview

One of the key integration areas for SAP Business One and Eralis Job is around the General Ledger and the various General Ledger accounts needed by Eralis Job. Eralis Job has been developed specifically for SAP Business One and is tightly integrated into the core SAP Business One system. This integration includes General Ledger posting.  

Every transaction within Eralis Job (excluding quote lines) generates a financial transaction in SAP Business One with resulting journal entries. A minimum of six General Ledger accounts are required by Eralis Job, but these can be extended depending on the requirements of the site. It is recommended that the accounts are used exclusively for Eralis Job. This will make reconciliation of accounts much easier than if they are used for other processing.  

The required General Ledger accounts include: 

• Work-in-progress (WIP) General Ledger account – This account should be created in the balance sheet as part of the assets section. It is normally located in the same section as the inventory control accounts. 
• Contract Control account – This account should be in the balance sheet as part of the liabilities section. Please note that it can also be referred to as the Deferred Income account. The values reflected would generally be regarded as a current or short-term liability, but this depends on the nature of the contracts that are undertaken by the customer. 
• Profit Recognized account – This account is used in conjunction with the Contract Control account and should be in the liabilities section of the balance sheet. It should be located as part of the short-term liabilities section regardless of where the contract control account has been placed. 
• Stock Movement Variance account – This account is essentially a price variance account and should be in the income statement as part of the cost of goods sold section. 
• Under/Over Recovery account – This account forms part of the invoicing and contract process and must be part of the income statement section. Generally, the account is located under the cost of goods sold section, but can also be reflected as part of the revenue section. 
• Recovery accounts – These accounts are income statement accounts and should be part of the cost of goods sold section.