Summary

After you have created account types, you need to set up category codes to define what journal entries will be created when inventory actions or processes take place. Category codes define the different types of transactions you will be working with in Inventory Control and which account types should be debited and credited in the transaction.

For example, if you receive inventory items into the warehouse the journal entry would be a debit to the inventory account and a credit to the inventory clearing account. A category titled Receipt must be set up with the user defined account types so the system will know which GL accounts to debit and credit.

If you change the GL distribution of a Category and then reverse that transaction that is attached to the category, the transaction will be reversed using the original GL accounts attached to the category.

Step by Step

1     Open the Category Maintenance window.

• The Category Maintenance window (IC> Maintenance> Category) will display all the code categories created in the application.
  • The Receipt, Transfer In, Transfer Out, Overage and Shrinkage categories will automatically populate the window.
• Highlight a category and click the Delete icon to delete the selected category.
  • You will not be able to delete the default categories listed above.
• Click the Create icon to create a new category. This will activate the Maintenance section of the Category Maintenance window.

2     Create a new category.

• Enter a unique Category name. Categories can be up to 20 alphanumeric characters.
  • Some processes or actions require specific Category names in order for the system to operate properly. These categories will be automatically populated when the IC module is installed.
    • The Receipt category is used when receiving inventory items.
    • The Transfer In and Transfer Out categories are used when transferring inventory items.
    • The Overage and Shrinkage categories are used when running a physical inventory batch.
• Enter a Description for the category. This is an optional field and can be up to 40 alphanumeric characters.
• Select an Action from the drop-down menu.
  • The Action drop-down menu allows you to associate an inventory action with a category code. When creating an Inventory Transaction in the Enter Transactions window (IC> Inventory Transactions> Enter Transactions), you will only be able to create inventory transactions on categories that are associated with the selected action.
  • Select All in the drop-down menu if you do not want to limit the use of the category based on the action of the inventory transaction.
• Enter an account type in the Debit Account Type field or click the field label to select one from a list.
• Enter an account type in the Credit Account Type field or click the field label to select one from a list.
  • The account types assigned to a category type will be overwritten by the account types attached to the inventory items when there is a transaction on the inventory item.
• Check the Active toggle to make the category active.
• Click the Save icon or press ENTER when complete.