Automate Unit Account Values Based on Sales Quantities

It is a typical KPI request to be able to report on unit account values.  Let's go ahead and say that we're looking at a profit and loss report, by product and the business wants to see units sold that are included in that margin.

In a perfect world (and using some tools that are not named Management Reporter), if you're capturing the Product A quantity in the Sales Order Processing (SOP) module in GP, you'd be able to reference the sum of the sales instead of using a unit account.  However... We don't live in a perfect world whilst using Management Reporter thus Unit Accounts are required.

So what we'd see is in GP, we'd setup a unit account for something like "Units Sold - Product A"

In Management Reporter, we'd then have a row definition that looked something like...

Sales Product A

- Expenses Product A

= Margin

/ Units Sold - Product A

= Margin/Unit

In a typical fashion, in order for this report to be up to date, the accounting team would need to make a routine journal entry to the unit account within GP.  This process leaves way for manual errors, timing issues & the potential for management to lose confidence in their reports.

Using the method below, we complete streamline this process by automating the unit account journal entry within GP.

Part 1: Associate a unit account with an inventory item in GP.

Note: For example deliverable, one item may be used at multiple locations (segment 1 of COA).  Therefore, we just assign the Natural account to the item & then let the integration define the remaining COA segments)

Approach: We accomplish this using

eOne Solution's Extender product

Part 2: Setup integration that captures posted activity in GP & creates journal entry in GP.

Note: For example deliverable, we're pulling the prior day's activity & creating a journal entry first thing in the morning.

Note: Integration script defines COA segments based on the SITE of the sale on SOP invoice & then the natural account that we associated to the item.

Approach:  We accomplish this using

eOne Solution's SmartConnect product

Map/Integration Setup

ODBC Connection to Company Database - Selecting Prior Day Sales

Part 3: Enable map/integration schedule.  This is an out of the box functionality of SmartConnect.

Part 4: Create reconciling reports using SmartList/SmartView.  These reports can be used at month-end to reconcile financials.

Note: This report is best suited to be built using a Sales Line Item report, filter on the posting date & ensures that returns are shown as negatives

Part 5: Notify accounting team that all they need to do moving forward is post their batches & reconcile once @ month-end!

Integrated transactions in GP would look similar to...

Note: All prior day activity are rolled into 1 line.  Option to separate for each sales transaction would be available if desired.

A few other notes to consider in this process...

- Returns must be accounted for

- When deploying, it is recommended to have the accounting team reconcile more frequent.  As they gather an understanding of process and ensure that numbers are tying out, reconcile less frequent.

- Failed integrations should auto-notify an integration PowerUser.  PowerUser could re-run integration if/when needed

This solution is built in a manner that's easy to implement & maintain and quickly accomplishes the goals of time savings, accurate data & providing a more robust GP system.

Thinking about implementing for your business and looking for additional details?  Already implemented and have feedback?  Let us know in the comments below!