Using Project Codes with GL Accounts

Using Project Codes with GL Accounts Version

This topic discusses:	Links to related topics:
Overview - Security The Project Codes Table Use expense codes and project codes on requisitions About commodity codes Requisition example: item with no associated commodity code	About General Ledger accounts Requisition file and non-file Items Use General Ledger account validation - Overview Separate POs by requisition, department, vendor, item, etc. Use direct delivery POs
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Overview

Your site may assign project codes to requisition lines, purchase orders, and invoices. The Project Codes table lets you create and use project codes.

With any GL account used for item expenses, you can direct the system to require a project code on requisition lines and purchase order lines. When a user creates a requisition or PO line that is expensed to the GL account, the system instructs the user to select a project code.

You can also require any requisition or purchase order line with a project code to contain only a commodity-coded item. Commodity codes can be assigned to different approvers at your site, so that a commodity-coded item request is reviewed and approved by the appropriate staff.

This topic describes how to associate project codes with GL accounts, and how to use project codes and commodity codes with requisitions that generate capital expenses, for example.

Security

The role object that controls access to tables is "MMTables," minimally set to View.

The Project Codes Table

Project codes are defined in the Project Codes Table. Figure 1 is an example. In the Figure, three project codes (1067, 1017 and 1011) require the requisitioned items to have a commodity code.

Figure 1 - Sample Project Codes

To create a project code:

From the the system main Contents, select Tables > Project Codes.
The Project Codes Table (Figure 1) appears. (The table contains No Data if no codes exist).
Click New.
The Project Code Edit panel appears (Figure 2).

Figure 2 - Project Code Edit Panel

Enter a Project Code. (Your site may have established a numbering convention for project codes.)
Enter the Project Description.
If an amount is budgeted for the project, enter the amount.
the system computes and displays the Current Amount in the budget as items are expensed to the project.
If your hospital uses special identifiers for capital projects, enter the identifier in the field Capital Project X-Ref.
To require that requisitioned items must contain a commodity code when expensed to the project, select Commodity Code Required.
Click Save and Submit.
the system displays the Project Codes Table.
Click Refresh to view the new project code.

Using Expense Codes and Project Codes on Requisitions

An expense code can be specified on an Item Inventory record. Figure 3 is an example of an item inventory record that contains an expense code (circled in red).

Figure 3 - Item Inventory Record

Each the system expense code is associated with a materials expense segment (or segment group). The system uses the materials expense segment in constructing the complete account code that will be the final destination of an item line's cost. The system generates the complete account code by combining the department and organization segments with the expense segment. See Using General Ledger Account Validation - Overview for details.

You can require a Project Code to be entered on requisitions expensed to particular General Ledger accounts. When such an account is assigned to an item inventory record, and a requisition is opened for the item, a message appears instructing the user to enter a Project Code. For example, for Organization 001, Department 0000, and expense code 00A-00, the General Ledger account is displayed in Figure 4. Notice that a Project Code is required for this account.

Figure 4 - General Ledger Account Edit Panel

In summary, here is the setup described in the previous paragraphs:

The project code 1067 Replace carpeting - 4W sun room (Figure 2) has been defined.
Items such as 01908 Carpet tiles (Figure 3) are expensed to account code 001-00A-00-0000 (expense code 00A-00).
On requisition lines for items with expense code 00A-00, a project code is required (Figure 4).
The requisition lines with the expense code 00A-00 can only contain commodity coded items. (Figure 2).

About Commodity Codes

When a commodity-coded item assigned to an approver appears on a requisition, the requisition is always subject to approval. Different staff at your site may be assigned to review requisitions for particular commodity codes. Approvers' commodity code assignments are made in the Commodity Approvals table in Supply Chain: Materials Management.

Commodity codes are defined in the Commodity Codes Table. To view the table,

From the main Contents, select Tables > Commodity Codes.

A detailed discussion of creating and using commodity codes is in the topic "Requisition Approval Processing by Cost, Commodity Code and Item Type."

Requisition Example - Item with No Associated Commodity Code

Figure 5 displays the item inventory record for a sample item: 01911. The item has no associated commodity code. This item is expensed to expense code 00A-00 (account code 001-00A-00-0000 for this department and organization). Account 001-00A-00-0000 requires a project code.

Figure 5 - Item Inventory Record 2

When you open a requisition for the item and enter the project code CAP-FAC, you must also enter a commodity code because this project code requires it. However, Item 01911 has no associated commodity code. Figure 6 and Figure 7 display what happens with requisition lines for Item 01911.

A user opens a requisition line for item 01911, enters a quantity, and clicks Save.
The system displays a message that a project code is required (Figure 6).

Figure 6 - Requisition File Item Panel with Message for Project Code

The user selects the Overrides tab to enter a project code, enters a value in the Project Code field, and clicks Save.
Since the entered project code (1067) requires a commodity code for any requisitioned item, and because the item 01911 has no commodity code, the system displays a message (Figure 7).

Figure 7 - Requisition File Item Panel with Message for Commodity Code

The user must either Cancel the requisition line or click Refresh to clear the fields, and add the commodity code to the item record (Figure 8).
Hint: The Internet Explorer tabs let you leave a panel open on one browser tab while you access another panel on a different tab.

Figure 8 - Entering a Commodity Code on an Item Catalog Record

The user edits the item catalog record, enters a Commodity Code value, Saves the record, and clicks Submit.
The user can then go back to the requisition and open a new line for the item (Figure 9).

Figure 9 - Requisition for Item with Commodity Code Required by Project Code

If you are using commodity codes to route requisitions for approval, you may wish to review your item records to make sure that commodity codes have been assigned where needed. This process will save time when you create requisitions, especially if the items' expense codes require you to enter project codes, and the project codes are associated with commodity codes.