Accrued Open Deal Service Order Offset GL Account

Accrued Open Deal Service Order Offset GL Account


Accrued Open Deal Service Order Offset GL Account

When a deal is posted prior to an internal service order being marked paid, you can enter in a value as an estimate of what that service order will be (which is normally the value it would be currently at). This estimate attaches to the unit as a cost adjustment and thus, is capitalized. It debits unit inventory (the GL account is based on the unit type and whether it is new or used) and credits the Accrued Open Deal Service Order Offset GL account. This way the profitability of the deal includes the value (estimate) of the service order. Naturally, since this estimate is capitalized, when the deal is posted the full value of the unit (include this estimate, any other internal service orders, manually added cost adjustments, the base cost of the unit deriving from the Unit Vendor Invoice), comes out of inventory and goes against the applicable COGS.

Later, when this open service order is marked paid, it debits the Accrued Open Deal Service Order Offset GL Account.

This system enables deals (and financial statements) to more accurately reflect correct profitability even if there are internal service orders that cannot yet be closed when the deal is posted.
Location of pointer: system settings> accounting> misc accounting settings> unit sales tab