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In Finance - Accouting roules - Process codes
“Process Codes
[To Define Financials Basics]
Usage
Use this window to enter, change, and view information for the process codes. Process codes are used to control automatic posting rules. A process code can also be entered in Combination Rules, Code String Completion, and Pseudo Codes”
To what use/benefit, example of hove to use this?
Hi,
That’s a really good question. I’ll describe a real-life scenario from a client many years ago.
Requirement is to allocate certain expenses for example utilities based on the facility address. Location 1 was mostly admin, sales, and a small amount of manufacturing. Location 2 was mostly manufacturing, but had some sales and admin. The mix was very different.
Solution was to set up 2 process codes (for example loc 1, and loc 2), and use this in two automatic posting rules. The two rules were triggered by the same account string, but the process code differentiated the rules. Rule 1 had the split for location 1 and rule 2 had the split for location 2.
Use case, - when AP processed a supplier invoice for utilities expense, they would key in loc 1 or loc 2 depending on the utilities invoice (the supplier had a set default code string). The only posting difference was the process code.
Result the utilities expense was allocated differently due to the process code.
I’ve also used process code as a trigger - “YES” allocate this or “No"” do not allocate this - this is an exception.
It’s just a trigger / something that makes a transaction different (from an accounting) perspective even though it has the exact same code string.
I’ve also used process code for an employee code used with manual vouchers.
Best regards,
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