This topic introduces the hierarchy that Q360 uses for looking up which GL account to use for various automated journal postings. Only scenarios that may have multiple levels of rules are described here.

Lookup rules work in levels of precedence. Level 1 is looked at first, followed by level 2, and so on. If a configured rule is found in Level 1, the lookup ends there.

The following is a list of terms and definitions used in this document.

• Default Extended Accounts: Managed in Accounting > Admin > Default Extended Accounts. This form contains the rules defining which revenue or COGS account to use for each combination of sale type (post type) and master type (e.g., A, Q, M)
• Master Details Accounts: Managed in the Inventory > Master > Details tab. This form defines which GL account to use irrespective of sale type. Note: some GL accounts may not be looked depending on the nature of the masters.
• Master Extended Accounts: Managed in the Inventory > Master > Ext. Accounts tab. This form defines the rules for which revenue or COGS account to use when the specific master is used in a certain sale type (a.k.a., post type)
• Company Setup: Managed in Accounting > Admin > Company Setup. This form specifies entity-wide key GL accounts including default (fallback) accounts to use when no other specific rule exists.
• Time bill Wage Type-specific Accounts: Defines the debit and credit account when a specific employee’s time bill of a certain wage type gets posted. Due to complexity of this definition, is it not typically used unless a specific need is identified.
• Using or not using actual wages: Refers to basing the costing of a time bill on the employee’s wage and optional defined burden as opposed to standardizing those costs at the labor master level. This method yields more accurate labor costing, especially if wages vary significantly across your labor resources.
• Fixed Asset accounts: Managed in the Inventory > Assets > Details tab. Can be used to override the default depreciation expense account per fixed asset. Due to the complexity of this definition, it is not typically used unless a specific need is identified. Q360 has built-in reports to accompany your financial statements, providing in-depth look at various information related to your fixed assets by category.
• Tax Dist accounts: Managed in in Accounting > Admin > Tax Applicable Codes. Can be used to override the default collection or payment account per tax district code. Due to complexity of this definition, this is not typically used unless a specific need is identified.

Ensure you thoroughly review your account lookup rules configuration prior to you company’s Go Live to avoid misclassed postings. In the following tables, note the items highlighted in bold containing the recommended place to establish your lookup rules in each scenario.

Note:  Users expecting to do business in multiple currencies should also view Multi-Currency and Foreign Exchange (FX)

Jobs COGS and revenue

Time bill posting

1) COGS account to debit

If configured per employee, burden is posted as a separate debit entry to the same account selected above, only when using Actual Wages method of labor costing.

2) Contra account to credit

Monthly cost recognized for pre-paid expense

Monthly cost recognized for depreciation expense

Tax liability and expense