[EM] How to change GL accounts for Equipment Cost Codes/Types

Equipment Management (EM) Cost Types can be linked to EM Cost Codes via the Cost Types tab in the EM Cost Codes form.

EM Departments

Use the EM Departments form to:

• Set up departments.
• Define General Ledger (GL) accounts for equipment revenue (usage) and costs.

Each piece of equipment (set up in EM Equipment) must be assigned to a department. This department determines which GL accounts to use when posting revenue and costs.

Important: All GL accounts assigned to a department must have a Sub Ledger Code of 'E-Equipment' or be blank (null) in the GL Chart of Accounts.

Steps to Change GL Accounts

1. Navigate to:
    EM > Programs > EM Departments
2. Determine the Number of Departments Needed
   • You may set up as many departments as needed, depending on your accounting structure.
   • If all equipment revenue and expenses are posted to the same set of GL accounts, you only need one department.

1. Assign Departments to Equipment
   • Departments are linked to equipment records in EM Equipment.
   • When posting usage or costs, the system retrieves the appropriate GL account from the assigned department.

In certain forms (e.g., EM Cost Adjustments, EM Usage Posting, AP Transaction Entry), you can override the default GL accounts if the Allow GL Accounts Override option is enabled in EM Company Parameters.

To disable automatic GL updates for equipment transactions, set the appropriate General Ledger Update option to "No Update" in EM Company Parameters.

Tabs in EM Departments and Their Purpose

Cost Types Tab

• Assigns GL accounts to each cost type used within the department.
• These accounts are used when posting equipment costs.
• You can use:
  • Unique GL accounts per cost type, or
  • The same account for multiple cost types.

Note: Accounts must be of type 'E-Expense' or 'A-Asset' in the GL Chart of Accounts.

Cost Codes Tab

• Enables GL account overrides by cost code, regardless of cost type.
• Use this when a more granular GL breakdown is needed.
• Example:
  You use four cost types (Labor, Parts, Subcontract, Miscellaneous), each linked to its own GL account. However, for depreciation and insurance, you want separate GL accounts.
  • Set up unique cost codes for depreciation and insurance in EM Cost Codes.
  • Assign override GL accounts in the Cost Codes tab.
  • Post costs under the Miscellaneous cost type using the relevant cost code, and the override account will be used instead of the default.

Earnings Types Tab

• Assigns GL accounts to specific earnings types used in mechanic timecard posting.
• Useful when certain types of earnings (e.g., overtime, bonuses) should post to separate GL accounts instead of the default Labor cost type account.

Liability Type Tab

• Assigns GL accounts to liability types used in timecard posting.
• Useful when specific liabilities (e.g., burden expenses) should post to different GL accounts than the associated cost type.

Revenue Breakdown Codes Tab

• Assigns GL accounts to revenue breakdown codes.
• These accounts override the revenue code’s GL account when posting equipment usage.

To avoid this override for a particular revenue code, ensure a GL account is defined directly on the revenue code.

Revenue Codes Tab

• Assigns GL accounts to each revenue code used during equipment usage posting.
• If no account is defined here, the system uses the account from the Revenue Breakdown Codes tab.

Workflow Tab

Applies only if using the Workflow module.

• Allows workflow processes to be defined at the department level.
• These override:
  • The Workflow tab in EM Company Parameters, and
  • The Workflow tab in HQ Company Setup.

Roles Tab

Applies only if using the Workflow module.

• Assigns users to roles within a department workflow.
• Rules:
  • Users can only be assigned to roles that have been set up in the HQ Roles tab.
  • Users may have multiple roles.
  • Roles may be assigned to multiple users and reused across departments.