Classification codes are used to group debtors and provide the linking to the General Ledger accounts. They can also be used to create specific pricing based on classifications. These accounts are used to control the posting of the journal sets from transactions involving the debtors e.g. invoices, payments etc. Creating a new debtor record automatically applies the default classification that can be changed as needed. Determine credit terms for each classification. The Price Scheme automatically attached to the customer record can be changed in Financials > Pricing tab.
Steps
| 1. | Debtors 
Configuration Classifications
|
| 2. | Click New or select a classification and click Copy |
| 3. | Description - type in relevant description |
| 4. | Select a Pricing Scheme from the search window or leave as Default Scheme |
| 5. | Select a Debtor Pricing Group from the search window or leave as Default Price Group |
| 6. | Select from the search window the relevant General Ledger accounts pertaining to this classification. See the details below on what transactions use which acocunts |
| 7. | Type in Term Days and select Term Type from drop down list box - either Invoice or Statement |
| 8. | Save changes |
| 9. | Repeat steps 2 to 8 as needed |
Ledger accounts are used by the following processes:
| Name | Description |
|---|---|
| Debtors Control | Balance Sheet control account that is posted to by the processing of sales orders and credit notes, Service Manager and Job Costing invoices, Cash Book Receipts and Payments, Debtor batch transactions, and Bank Reconciliation for direct receipts/payments to and from debtors |
| Debtor Sales | Is only used when the system setting in Invoicing - UseInventorySalesLedger is NOT ticked and is only used by process Sales Orders |
| Debtor Discounts | Used by Cash Book Receipts and Direct Debtor Receipt in the Bank Reconciliation when a discount for early payment is entered |
| Debtor Sourced Invoice | Default P&L ledger account when creating a Debtor Invoice |
| Debtor Debit Adjustment | Default ledger account when creating a Debtor Adjustment - Write On Amount field |
| Debtor Sourced Receipts | Not longer used. Debtor Receipts form has been retired. Cashbook Receipts is the form for receipting payments from customers |
| Debtor Credit Adjustment | Default ledger account when creating a Debtor Adjustment - Write Off Amount field |
| Debtor Freight | Used to post amounts entered in Courier, Freight 1 and Freight 2 on sales orders |
| Debtor insurance | Used to post amount entered in Freight 2 on a sales order when system setting in Invoicing - Cartage3ToDebtorsInsuranceLedger is ticked |
| Term Days | Usually printed on statement and invoice reports |
| Term Type | Usually printed on statement and invoice reports. Select from Invoice or Statement |
| Price Scheme | Stores and maintains the relevant pricing discounts granted to customers by inventory. Only one scheme can apply to a debtor |
| Pricing Group | The relevant Debtor Pricing for that classification used in conjunction with Inventory Pricing Groups |
| Debtor Realised Gain/Loss | Not applicable at this stage |
| Debtor Unrealised Gain/Loss | Not applicable at this stage |
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