Purchase a/c system in B1

Question

Hi all,
I would like to know ,if  using purchase accounting system,what are impacts on system & functionality.
can any one guide me.
regards,
manisha

Answer 1

Hello,
hope this following info could guide you:
Purchase Accounts Posting System (PAPS)
The Purchase Accounts Posting System allows you to better manage a company's budget and expenses. It is a sensitive definition in the sense that once it's activated and journal entries have been created it cannot be updated.
Purchase accounts posting system can be activated under:
Administration > System Initialization > Company Details.
Check the Use Purchase Accounting Posting System box on the basic Initialization tab.
On activation of this feature, three accounts are created in inventory tab in G/L account determination namely: Purchase Account, Purchase return Account, Purchase offset Account
Administration > Set Up > Financial > G/L Account determination. Inventory tab
Purchase account: When an A/P invoice or a goods receipt PO is created, the purchase account is recorded in the journal entry along with the same amount that is recorded for the stock account.
Purchase return account: When a goods return or an A/P credit memo is created, this account is recorded in the journal entry along with the same amount that is recorded for the stock account.
Purchase offset account: This account is an offsetting account for purchase account or purchase return account.
The PAPS is a fantastic cost accounting tool because it allows you to define purchasing budget since a purchase account can be made an expense account. Furthermore, if objects such as item groups and warehouses belong to profit centers, purchase account can be linked to their G/L account determination and distribution rule can also be defined for the purchase accounts.
By and large, to drive internal reporting, objective and critical decision making, these functionalities can be leveraged in SAP Business One. The flexibility of report generation is great and if need be, these reports can be exported into external systems for better data analysis.
let me know if you still need more info. But best approach to understanding something after knowing the theory is to practice.
Rgds,