SuccessWare®21 Pricebook

Concept Guide

Item Numbers (Codes) 2

Line Items (Receivable Invoices, Payable Invoices, and Inventory Transactions) 2

Description, Cost / Sale Price. 2

General Ledger Posting (Sales and Expenses) 2

What Item Numbers Do I Need In My Pricebook?. 2

Pricebook Setup. 3

Expense Accounts and Sale Accounts. 3

A Note About Departments. 4

Expense Types and Sale Types. 4

Categories and Groups. 4

For more information on using the SuccessWare®21 Pricebook, see the on-line documentation or your training manual.

Item Numbers (Codes)

Line Items (Receivable Invoices, Payable Invoices, and Inventory Transactions)

SuccessWare®21 utilizes item numbers to identify everything your business sells or purchases: jobs/tasks, parts, labor, miscellaneous sales and expenses, and also overhead expenses. These item numbers (codes) can be any 15 character alphanumeric code. The Pricebook decreases the opportunity for error during line item entry, and simplifies the process by eliminating general ledger decisions at the time of entry.

Whenever a user enters a line item on an invoice (A/R or A/P) or inventory transaction (receipt, requisition, return, transfer, adjustment), they enter an item number. The pricebook is used to automate entry of the item number’s description, cost or price, and general ledger information. Item numbers:

Automate description and cost/price entry (you can override the cost/price and description on the line item)
Determine which general ledger account to debit/credit via the sale type or expense type
Allow analysis of sales and expenses by item number

Description, Cost / Sale Price

Within the pricebook, each item is set up with an item number and a description. A sale price may be recorded for items that might be sold on receivable invoices. A cost may be set up for items that might be used on payable invoices. For instance, parts can be both purchased and sold so parts can be set up with both a sale price and a cost. When using an item number on a receivable invoice, the description and sale price are referenced. When using an item on a payable invoice or inventory transaction the description and cost will be referenced.

General Ledger Posting (Sales and Expenses)

When posting invoices or inventory transactions, credits and/or debits are posted to the general ledger for each line item. The account debited or credited is determined by the general ledger information set up on the item number. When posting receipts, A/P invoices, inventory requisitions and returns, the item’s cost is posted to the expense account specified by the items expense type. When posting A/R invoices, the item’s price is posted to the sale account specified by the item’s sale type.

Figure 1 illustrates the relationship between the pricebook, line items, and general ledger.

What Item Numbers Do I Need In My Pricebook?

Setting up the pricebook entails creating items and corresponding item numbers for everything your company sells or purchases. The pricebook can be set up to contain thousands of parts and tasks/jobs with material lists, or it might consist of a simple list of maybe twenty or so item numbers to cover general types of sales and expenses. What item numbers do you need in your pricebook:

If you will be using inventory and keeping item counts by warehouse, you must create individual item numbers for each item to be counted.
If you will not be using inventory, it is not necessary to create an item number for every size of widget. You can create one general item numbers ‘WIDGET’, and use it for any size widget. You can override/type the description/cost/price on the line item. You can even go as far as to create an item number ‘PART’ and use it for all parts. Keep in mind that the more general your item numbers, the more limited your reporting capabilities.

At minimum, you must create an item for every sale and/or expense account you wish to post to in the general ledger.

Pricebook Setup

Setting up your pricebook consists of

1) Identifying and possibly setting up additional expense accounts and sale accounts in general ledger,

2) Creating your expense types and sale types,

3) Creating your categories and groups,

4) Creating your items.

Expense Accounts and Sale Accounts

The first step in setting up your pricebook is in determining the desired breakdown for sales and expenses account in your general ledger. Choose from the default chart of accounts and/or set up additional accounts for your Expense or Sale types. For example:

Expense Accounts

Sale Accounts

(part expenses)

4001 Cost of Sales - Materials

4100 Cost of Sales – Equipment

(labor expenses)

4002 Cost of Sales - Labor

(misc expenses)

4103 Cost of Sales - Subcontracts

4104 Cost of Sales - Permits

4110 Cost of Sales - Other

4650 Cost of Sales - Commissions & Sales Sal.

(overhead expenses)

2081 Notes Payable (Current)

2085 Notes Payable - Related Party (Current)

2201 Employee Withholding - FICA

2202 Employee Withholding - Federal Taxes

2501 Accrued State Income Tax

2502 Accrued Federal Income Tax

2781 Other Current Liabilities

2801 Notes Payable

2802 Capital Lease Payable

2803 Notes Payable - Related Party

2804 Other Long Term Liabilities

5000 Yellow Pages

5010 Direct Mail

5020 Newspaper

5030 Radio

9920 Other Income Taxes – Current

(part sales)

3001 Sales - Parts

(labor sales)

3002 Sales - Labor

(misc sales)

3102 Sales - Other

(task sales)

3005 Sales - Repair

3101 Sales - Replacement

3201 Sales - Scheduled Service

A Note About Departments

When classifying your expense accounts and your sales accounts, it is not necessary to break categories up by department. The SuccessWare®21 General Ledger has departments built in.

For example, given the following departments: 10 Installation, 20 Maintenance, 30 Service…

Don’t set up accounts like this

Set up accounts like this

4001 Cost of Sales – Parts (Installation)

4002 Cost of Sales – Parts (Maintenance)

4003 Cost of Sales – Parts (Service)

4101 Cost of Sales – Labor (Installation)

4102 Cost of Sales – Labor (Maintenance)

4103 Cost of Sales – Labor (Service)

4001 Cost of Sales – Parts

4101 Cost of Sales – Labor

When we post to general ledger, we will post with the department.

Account	Description	Department	Credit	Debit
4001	Cost of Sales – Parts	10 Installation		$ 750.00
4101	Cost of Sales – Labor	10 Installation		$ 150.00
4101	Cost of Sales – Labor	30 Service		$ 95.00

Expense Types and Sale Types

Expense types and sales types are used to determine the general ledger information required when posting line items. This G/L information includes: account, sub account, and an optional department.

You should only set up a department on a sale or expense type if you usually post to that account with that department.
Sub account is only required if the account has been sub accounted.

For each expense account identified, you need to create an expense type, and for each sale type identified, you need to create a sale type.

You will be assigning each item to an expense type and/or sale type. When posting receipts, A/P invoices, inventory requisitions and returns, the item’s cost is posted to the expense account specified by the items expense type. When posting A/R invoices, the item’s price is posted to the sale account specified by the item’s sale type. Based on the accounts identified in the example above, we might define our expense and sales types as follows:

Expense Types

Sale Types

Code

Acct

SubAcct

Dept

Code

Acct

SubAcct

Dept

MAT

EQUIP

LABOR

SUBCON

PERMIT

OTHER COMMIS

NPCUR

NPREL

EWFICA

EWFED

4001

4100

4002

4103

4104

4110

4650

2081

2085

2201

2202

PARTS

LABOR

OTHER

SERV

INST

MAINT

3001

3002

3102

3005

3101

3201

Categories and Groups

You can use the category or group to assign sale types and/or expense types to all the items in the group or category. Edit the category or group and select a sale and/or expense type. Save the category or group. All the items in the category/group will be updated to reference the category/groups sale and/or expense type.

Pricebook Setup A

The following is an example of a simple pricebook setup.
This type of setup will lead to more limited reporting capabilities due to the limited number of item numbers.

Section	Category	Group	Item# (code)	Expense type	Sale type

Parts	Parts	Parts	EQUIP	EQUIP	PARTS
			MAT	MAT	PARTS

Labor	Labor	Labor	LABOR	LABOR	LABOR

Miscellaneous	Misc	Misc	SUBCON	SUBCON	OTHER
			PERMIT	PERMIT	OTHER
			OTHER	OTHER	OTHER
			COMMIS	COMMIS	OTHER

Tasks	Tasks	Tasks	SERV	(n/a)	SERV
			INST	(n/a)	INST
			MAINT	(n/a)	MAINT

Overhead	Overhead	Overhead	NPCUR	NPCUR	(n/a)
			NPREL	NPREL	(n/a)
			EWFICA	EWFICA	(n/a)
			EWFED	EWFED	(n/a)
			.
			.
			.

Pricebook Setup B

The following illustrates a slightly more complex setup for the parts section of the pricebook.
This results in more detailed reporting capabilities.

Section	Category	Group	Item# (code)	Expense type	Sale type

Parts	Parts	Parts	AC	EQUIP	PARTS
			COIL COND FURN	EQUIP EQUIP EQUIP	PARTS PARTS PARTS
			HTWTR	EQUIP	PARTS
			DUCT	MAT	PARTS
			PIPE	MAT	PARTS
			WIRE	MAT	PARTS
			GENMAT	MAT	PARTS

Pricebook Setup B

The following is a more sophisticated pricebook setup that might be used for inventory control.
This example shows item numbers for different model furnaces, air conditioners, coils, and condensers,
as well as item numbers for different types of wire, pipe, and other materials.

Section	Category	Group	Item# (code)	Expense type	Sale type

Parts	Equipment Material	AC Furnaces Coils Condensers Pipe Wire	AC1114 AC1124 AC2112 AC2124 AC5919 GUSA090BX50 GUSA115BX50 GUVA045AX30 GUVA070AX40 GUVA090AX50 GUVA115AX50 22770 22775 22780 22785 22790 22600 22610 22620 22630 . . . 19321 19322 19323 . . . 1721 1731 1741 . . .	EQUIP EQUIP EQUIP EQUIP EQUIP EQUIP EQUIP EQUIP EQUIP EQUIP EQUIP EQUIP EQUIP EQUIP EQUIP EQUIP EQUIP EQUIP EQUIP EQUIP EQUIP EQUIP EQUIP MAT MAT MAT MAT MAT MAT MAT MAT MAT MAT MAT MAT	PARTS PARTS PARTS PARTS PARTS PARTS PARTS PARTS PARTS PARTS PARTS PARTS PARTS PARTS PARTS PARTS PARTS PARTS PARTS PARTS PARTS PARTS PARTS PARTS PARTS PARTS PARTS PARTS PARTS PARTS PARTS PARTS PARTS PARTS PARTS

Concept Guide

Account

Debit

Expense Types

Sale Types

Code