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SAP Business One 9.3 and SAP Business One 9.3, version for SAP HANA
Document Version: 1.1 – 2019-01-03

How to Set Up Advanced G/L Account Determination

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Document History

Version Date Change

1.0 2013-09-02 First version

1.1 2019-01-03 · UDFs were added to the Determination Criteria - Inventory window
· The screenshot of window Determination Criteria - Inventory was
updated in section 2.1
· Screenshot and information were updated in section 2.3

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Document History © 2019 SAP SE or an SAP affiliate company. All rights reserved. 3
Table of Contents

1 Introduction.............................................................................................................................. 5

2 Setting Up the Advanced G/L Account Determination System ........................................... 7

2.1 Activating the Advanced G/L Account Determination System......................................................... 7
2.2 Setting the Advanced Rule Type in Item Master Data....................................................................... 11
2.3 Setting Up Determination Criteria ...................................................................................................... 11
2.4 Defining Advanced G/L Account Determination Rules.....................................................................12

3 Deactivating the Advanced G/L Account Determination Solution..................................... 17

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1 Introduction

G/L account determination was performed at several levels, providing users with a certain degree of flexibility:
· In the Item Master Data, you define for each item the accounts to be used when a marketing or inventory
document is created for the item. The available options are:
o Warehouse Level - when you create marketing or inventory documents, the accounts in the journal entry
created by the document are taken from the warehouse definition at: Administration → Setup → Inventory
→ Warehouses → Accounting tab.
o Item Group Level - when you create marketing or inventory documents, the accounts in the journal entry
created by the document are taken from the item group definition at: Administration → Setup → Inventory
→ Item Groups → Accounting tab.
o Item Level - any G/L account that you define at the item level
· At the company level, you could define a default method for G/L account assignments for new items at:
Administration → System Initialization → General Settings → Inventory tab.
· You could define default accounts to be applied to all levels mentioned above in: Administration → Setup →
Financials → G/L Account Determination.
The advanced G/L account determination solution provides a centralized matrix to determine rules for assigning
G/L accounts in journal entries, including:
· Defining the company-level accounts in one place: the G/L Account Determination window (the window which,
in the traditional solution, you used to define the default accounts at the company level)
· For tailored business scenarios, having the option to define rules for G/L account determination
These rules support:
· G/L account determination for item code, item group, warehouse code, ship-to country, ship-to state, federal
tax ID, tax code (not supported in Israel), business partner code, business partner type, business partner
group, UDFs, and usage (supported in Brazil only)

Note
You can use up to 5 UDFs as determination criteria. But the UDFs must be from one of the following
categories:
o Marketing Documents → Title
o Marketing Documents → Rows
o Inventory → Inventory Posting
o Inventory → Inventory Posting - Row
o Master Data → Business Partner → Business Partner
o Master Data → Item Groups
o Master Data → Items → Items
o Master Data → Items →Items - Warehouse
· Multi-determination criteria - a combination of the criteria mentioned above
Any rule you define in the advanced window has higher priority in determining which accounts are assigned in
journal entries. For detailed information about rules prioritization, see Priority .

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The solution facilitates tracking the change log of G/L account determination definitions.

Note
You can activate or deactivate the advanced G/L account determination solution at any time, in a new or
existing company.

Note
SAP Business One supports the creation, migration, and adoption of up to 4,000 advanced determination
rules.

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2 Setting Up the Advanced G/L Account
Determination System

2.1 Activating the Advanced G/L Account Determination System

You can activate or deactivate the advanced G/L account determination solution at any time, in a new or existing
company database. By default, the advanced G/L account determination solution is not activated in either new or
upgraded company databases. To activate the advanced G/L account determination solution, follow the steps
below.

Prerequisites
You have verified that only one user is logged on to SAP Business One.

Procedure
1. From the SAP Business One Main Menu → Modules tab, choose: Administration → System Initialization →
Company Details→ Basic Initialization tab.
2. Select the Enable Advanced G/L Account Determination checkbox. The Migration Options window appears:

3. Select the required option for your company database:

o Migrate Account Assignments and Inventory G/L Account Determination Settings - this option is selected
by default. If you keep this option, SAP Business One converts all the current G/L account determination
settings and assignments related to inventory accounts into advanced determination rules.

Note
If you keep this option, make sure you are the only user logged on to the company database. If additional
users are connected to the company database, the migration process cannot take place.

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 o Preview Advanced G/L Account Determination Rules - select this option to run a simulation and review the
advanced determination rules that will be created based on your current G/L account determination.
o Migrate Inventory G/L Account Determination Settings Only - if you select this option, SAP Business One
does not convert any of the existing G/L account determinations into advanced determination rules;
however, the relevant functionality is added to the SAP Business One application, enabling you to define
the advanced determination rules by yourself.
4. Choose the OK button.

Result
Depending on your selection in the Migration Options window, the following results occur:
· Migrate Account Assignments and Inventory G/L Account Determination Settings - the G/L account
determination settings related to inventory management are converted to advanced determination rules. In
existing companies where there are multiple posting periods, the migration process applies to all of the
defined posting periods. In addition, the following windows and functions are added to the SAP Business One
application to support the advanced G/L account determination solution:
o A new field, Advanced Rule Type, is added to the Item Master Data → General tab:

This field is added to support the conversion process. The value set in this field determines which
advanced rule will be used for choosing the inventory G/L account in the journal entry created by a
document that includes this item. In a new company, or a company that uses the predefined G/L account
determination settings provided by SAP Business One, all the items are automatically set to Advanced
Rule Type General.
o New windows, Determination Criteria - Inventory and Determination Criteria - Resources are added under:
SAP Business One Main Menu → Modules tab → Administration → Setup → Financials → G/L Account
Determination.

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 o Enhancements in the G/L Account Determination window (SAP Business One Main Menu → Modules tab
→ Administration → Setup → Financials → G/L Account Determination → G/L Account Determination):
o Advanced Rules column - indicates whether and how many advanced rules were created for the given
inventory account. Click the arrow to view the advanced rules in detail.
o Advanced button - choose this button to open the Advanced G/L Account Determination Rules
window, where you can view and update the migrated rules, and define new ones.

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 o A new window, Advanced G/L Account Determination Rules, is added. This window lists all the advanced
rules created following the migration process and enables you to edit them and add new rules. To access
this window, choose the Advanced button in the G/L Account Determination window.

o The Accounting tab is removed from the Warehouses - Setup window and from the Item Groups - Setup
window.
o In Item Master Data → Inventory Data tab, the columns representing accounts are removed from the
table.
o The name of the Set G/L Accounts By field in General Settings → Inventory tab → Items sub tab and in
Item Master Data → Inventory Data is changed to: Set Inv. Method By. The available values and the
selected value remain unchanged.
· Preview Advanced G/L Account Determination Rules - The Advanced G/L Account Determination Rules
window appears, listing the advanced rules that would be created if you were to choose the Migrate Account
Assignments and Inventory G/L Account Determination Settings option. To adopt the displayed rules, choose
the Migrate button. The same process as described in the Migrate Account Assignments and Inventory G/L
Account Determination Settings section takes place. If SAP Business One does not recognize any advanced
rules, the following system message appears:

This could happen if your company works according to the predefined G/L account determination settings
provided by SAP Business One, and no specific adjustments were made.
If you choose Yes, SAP Business One is enhanced to enable you to define the advanced rules on your own. For
more information, see Migrate Inventory G/L Account Determination Settings Only.
· Migrate Inventory G/L Account Determination Settings Only - SAP Business One does not create any rules;
however, the application is enhanced with all the new windows and options mentioned in the Migrate Account
Assignments and Inventory G/L Account Determination Settings section, enabling you to define on your own
the required rules for your company.

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2.2 Setting the Advanced Rule Type in Item Master Data

The advanced rule type is the first criterion for automatically picking the advanced G/L account determination
rule. By default, the advanced rule type is set to General for all items in a new company. When you activate the
advanced G/L account determination solution in existing companies, after the migration process, the vast
majority of the items are also assigned with the value General; however, there might be rare cases where certain
items would be assigned with the values Warehouse or Item Group.

Recommendation
You should keep the Advanced Rule Type field set to General. Use the Warehouse Code and Item Group
criteria in the Advanced G/L Account Determination Rule definition instead of using the Warehouse and
Item Group advanced rule types.

2.3 Setting Up Determination Criteria

After activating the advanced G/L account determination, you can select from a predefined list the relevant
criterion or criteria for your company and set the required priorities.
1. From the SAP Business One Main Menu → Modules tab, choose: Administration → Setup → Financials →
Determination Criteria.
2. In the Determination Criteria window, activate the required criteria by selecting the relevant checkboxes in the
Active column. If you want, for example, to see the distribution of revenues from sales of each item group in
different countries, activate the Item Group and the Ship-to Country criteria.

Note
o You can deactivate only the criteria which are not used by any advanced rule.
o If you activate the Item Code criterion, the Item Group criterion is automatically activated as well.
o If you activate the BP Code criterion, the Business Partner Group criterion is automatically activated as
well.

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 o If you activate the Ship-to State criterion, the Ship-to Country criterion is automatically activated as well.
o You can assign specific UDFs to each of the 5 UDF determination criteria by selecting from the dropdown
list.
o The criterion Usage is available in the Brazil localization only.
o The criterion Tax Code is not supported in Israel.
o By default, the checkbox Apply Ship-to Country/Ship-to State on Purchasing is deselected.
o When the checkbox is selected, the rules defined for the criteria Ship-to Country and Ship-to State are
applied to both the sales documents and the purchasing document;
o When the checkbox is deselected, the rules defined for the criteria Ship-to Country and Ship-to State
are applied to the sales documents only.
3. The order of the determination criteria reflects their priorities. The first criterion in the list has the highest
priority. To change the priority of a specific criterion, mark it and use the up or down arrow buttons to change
its location in the list and its priority.

Note
In companies where advanced rules were created during the migration process, the relevant
determination criteria are automatically selected and prioritized. You can select additional criteria if
needed and change the priorities.

2.4 Defining Advanced G/L Account Determination Rules

To define advanced G/L account determination rules, follow the steps below:
1. From the SAP Business One Main Menu → Modules tab, choose: Administration → Setup → Financials → G/L
Account Determination → G/L Account Determination. In the G/L Account Determination window, select the
Inventory tab, and then choose the Advanced button.
2. The Advanced G/L Account Determination Rules window appears.

3. Enter the required values in the respective fields:

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 Field Activity/Description

Period Select the posting period for which you want to define the rules. By default, the
posting period selected in the G/L Account Determination window is displayed.
If needed, you can define a separate set of rules for each posting period.
When a new posting period is created, all the rules defined for the current posting
period are automatically copied to the newly created posting period. In case the
current posting period is not defined, the rules defined for the latest posting
period (regardless its status) are copied to the new posting period.

Priority Reflects the priority of each rule, as calculated based on the priority of the
determination criteria. When new rules are added, or the priority of the
determination criterion is changed, the priority of the rules is recalculated and
updated accordingly.
SAP Business One prioritizes the rules as follows:
· For each rule, SAP Business One checks which determination criterion
included in the rule is of highest priority.
· The rule that contains the determination criterion with the highest priority
becomes the rule with highest priority.
· If there are two rules both of which contain the highest priority determination
criterion, the priority of the rule is determined by the priority of the next-
highest priority determination criterion.
· Between two rules with the same determination criteria, the rule where the
determination criteria are set to specific values takes precedence over the
rule where the determination criteria are set to All.
· It is impossible to create two identical rules. Two rules with the same values
are considered different if applied to different date ranges.

Code Specify a unique code for each rule in a given period. You can use the same code
for different rules in different periods.

From Date, To Date Set the date range during which the rule is active. The date range you define must
be within the date range of the selected posting period.
· To set the rule as active during the entire posting period selected, leave the
two fields empty.
· Define From Date only to set the rule as active from the specific date (later
than the beginning of the selected posting period) till the end of the selected
posting period.
· Define To Date only to set the rule as active from the beginning of the selected
posting period till the required date (earlier than the end of the selected
posting period).
· Define a date range, From Date and To Date, to set the rule as active during
the defined date range only.

Note
If you deselect the Active checkbox, these fields are disabled.

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 Field Activity/Description

<Determination The columns in this area represent the determination criteria selected in the
Criteria Columns> Determination Criteria window. The order of the columns reflects the priority of
each determination criterion, as defined in the Determination Criteria window - the
first column represents the determination criterion with the highest priority. In this
example, there are two columns for Item Group and Ship-to Country that were
selected in the Determination Criteria window.
For each determination criterion, select the required value in each rule. The
available values for the different criteria are:
· Item Group - to apply the rule to a specific item group, select it from the list.
By default, the value All is assigned to this criterion and the rule applies to all
item groups. If a specific item was assigned in the Item Code criterion, the
item group to which the selected item belongs is automatically assigned.
· Item Code - by default, the value All is assigned to this criterion and the rule
applies to all of the items. To apply the rule to a specific item, select the option
Choose, and then choose the required item code. When the rule is applied to a
specific item, the Item Group criterion is automatically assigned with the item
group linked to the selected item code. You can disable the Item Group
criterion manually in the Determination Criteria window. If you assigned a
specific item group to the Item Group criterion, only items belonging to this
item group are available for selection.
· Warehouse Code - by default the value All is assigned to this criterion and the
rule applies to all the warehouses. To apply the rule only to items stored in a
specific warehouse, select the option Choose and then select the required
warehouse code. If you have already assigned a specific item code to the Item
Code criterion, only the warehouses assigned to the selected item are
available.
· Business Partner Group - to apply the rule to a specific business partner
group, select it from the list. By default, the value All is assigned to this
criterion and the rule applies to all item groups. If a specific item was assigned
in the BP Code criterion, the Business Partner Group to which the selected BP
Code belongs is automatically assigned.
· Federal Tax ID - by default the value All is assigned to this criterion and the rule
applies to all documents regardless the federal tax ID assigned to them
(including documents without federal tax ID). To apply the rule only to
documents where a federal tax ID is entered, select the Filled option. To apply
the rule only to documents where a federal tax ID is not entered, select the
option Empty. To apply the rule to documents that include a specific federal
tax ID, select the option Enter Tax ID and type the required federal tax ID.
· Ship-to Country and Ship-to State - by default, the value All is assigned to both
criteria. When Ship-to Country is set to All, Ship-to State is also set to All and
cannot be edited.
To apply the rule to a certain country and a certain state, select the Choose
option in the Ship-to Country column, and choose the required country from
the List of Countries window. In the Ship-to State column (which becomes
editable), select the option Choose and in the List of States window, choose
the required state.

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 Field Activity/Description
To apply the rule to EU countries only, select the option EU in the Ship-to
Country column. To apply the rule to non-EU countries only, select the option
Non-EU. In both cases the Ship-to State criterion is set to All and cannot be
edited.
· BP Type - to apply the rule to business partners of type Company only, select
Company. To apply the rule to business partners of type Private, select the
option Private. By default, this criterion applies to all business partner types
and is set to All.
· Tax Code - to apply the rule to documents with a specific tax code, select the
Choose option and from the List of Tax Codes window, select the relevant tax
code. This criterion is not supported in Israel.
· BP Code - to apply the rule to certain business partners only, select the
Choose option. Then from the List of Business Partners window, choose the
relevant business partner code. When you apply the rule to a specific business
partner, the Business Partner Group criterion is automatically assigned with
the business partner group linked to the selected business partner. If you
assign a specific business partner group to the Business Partner Group
criterion, only business partners belonging to this business partner group are
available for selection.
· Usage - relevant to Brazil only. To apply the rule to a specific Usage code,
select the Choose option. Then from the List of Usage Codes window, select
the required usage. By default, the rules apply to all usage codes.
· UDF - by default, the value All is assigned to this criterion and the rule applies
to all values for the specific UDF. To apply the rule only to the UDF which has
values, select the Filled option. To apply the rule only to the UDF which has no
value, select the Empty option. To apply the rule to certain UDF only, select
the Enter Value option and type the specific UDF value.
If Item Code and one of the items UDFs are chosen as determination criteria,
the items UDF value will be updated automatically based on the item code.
However, this UDF value can be removed manually. If you manually remove
the value from the item code, the item UDF will be removed automatically.
This rule applies to the following connections:
• Item Code → Items UDF
• BP Code → Business Partners UDF
• Item Group → Item Groups UDF
• Warehouse Code → Warehouses UDF

Description Enter a meaningful description for each rule.

Type Assign the required type for each rule:

· General - by default, assigned to all the rules. Rules of type General can be
potentially used by all items. To allow for the most flexible usage of rules, we
recommend keeping all the rules as type General.
· Warehouse - rules of type Warehouse can be potentially used by all items,
except for items where the advanced rule type is set to Item Group.

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 Field Activity/Description
· Item Group - rules of type Item Group can be potentially used by all items,
except for items where the advanced rule type is set to Warehouse.

Active Indicates whether the rule is active or not. You can deactivate a rule at any time.

Account Columns The columns in this area represent the accounts listed in:
· G/L Account Determination window → Inventory tab, the revenue accounts in
G/L Account Determination → Sales tab, and expense accounts in G/L
Account Determination → Purchasing tab
· Item Groups - Setup window →Accounting tab
· Warehouses - Setup window → Accounting tab
· Item Master Data window → Inventory Data tab
For each rule, specify the accounts you want to be used when the rule is applied.
You must assign at least one account to each rule.
When you post a document, SAP Business One checks whether an account that is
required for the document transaction is assigned in one or more rules. If so, the
transaction is posted to the account in the highest-priority rule that matches the
document criteria. If no rule was created for an account required for a document
transaction (or the document does not match any of the available rules), the
document transaction is posted to the account defined in G/L Account
Determination → Inventory, Sales, or Purchasing tab (depending on the given
account). For example, you create a goods receipt and there is a rule that includes
inventory, but the rule includes also the BP Group determination criterion. Since
BP Group is not relevant for goods receipt, SAP Business One posts the document
transaction to the inventory account defined in G/L Account Determination →
Inventory tab.

4. Choose the Update button.

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3 Deactivating the Advanced G/L Account
Determination Solution

You can deactivate the advanced G/L account solution at any time. To do so, follow the steps below:
1. From the SAP Business One Main Menu → Modules tab, choose Administration → System Initialization →
Company Details → Basic Initialization tab.
2. Deselect the Enable Advanced G/L Account Determination checkbox. The following system message appears:

3. If you choose Yes, all the advanced rules and the respective windows and fields are removed. The G/L
account determination assignments is set according to the defaults defined when a new company is created.
In other words, if prior to the activation of the advanced G/L account determination solution, you made
adjustments in either the G/L Account Determination window, the Warehouses - Setup window → Accounting
tab, the Item Groups - Setup window → Accounting tab, or in the Item Master Data window → Inventory Data
tab, these assignments are not restored, and if needed, you will have to make the required adjustments again.

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