Set up alternative GL accounts

Set up alternative GL accounts

Overview

Alternative GL Accounts are used to reclassify transactions so that multiple income and expense accounts can be used within Cin7 Omni. You can assign alternative GL accounts to specific products, customers, suppliers, and branches. This can be utilized when importing transactions into your accounting system or when viewing reports in Cin7 Omni Insights. Alternative GL accounts can be useful for New Zealand customers who don't want to charge their international customers GST.

Create an alternative GL account in Cin7 Omni

  1. Select your name in the top right corner, then select Settings.

  2. Select Accounting, then select Alternative GL Accounts.

  3. Select Add New, then fill in the fields.

Active

Select Yes to enable this alternative GL account.

Sort

Enter a number to determine the accounts position in Alternative GL Account dropdown lists. The lower the number, the higher the position.

Name

Enter the name that will appear in Alternative GL Account dropdown lists. Use a name that identifies the purpose and use for this account, this will make assigning the Alternative GL account easier within the different modules of Cin7 Omni.

Long alternative GL account names may be difficult to find in dropdown lists. The name in Cin7 Omni is independent of the Xero account name.

Account number (optional)

The Xero account code. If blank, the default account will be applied to the transaction.

COGS account number (optional)

Enter an account where Cin7 Omni will upload COGS for sales orders if you want to use a different account to your default COGS account.

Tracking Categories in Xero are used for reporting purposes.  Alternative GLs can be used to assign tracking categories to transactions and avoid having to set these manually within Xero. Find more information on this feature.

Tracking categories name (Xero users only - optional)

Enter the name of the Tracking Category that you use in your Xero account, this is the name you have assigned to the overall category rather than the individual options.

Tracking categories option (Xero users only - optional)

The text must match the name of the Tracking Categories optionin Xero exactly. For more information see Setting up Xero Tracking Categories.

Tax Rate Code

Enter the code (Code) of the alternative tax rate to apply to this alternative GL account, if you don't want the default tax rate to apply. This code is the Code of the alternative tax rate in Omni.

Purchases or sales

Select Purchases to enable the alternative GL account for supplier contacts, purchase orders, and supplier credit notes. Select Sales to enable the account for customer contacts, sales orders, and customer credit notes.

Tax rate (optional)

Enter a number for the tax percentage to apply to sales when this alternative GL account is assigned. Do not use the % sign. If blank, the default tax rate is applied.

Product class (QuickBooks Online only - optional)

Alternative GL accounts created in Cin7 Omni will populate in QuickBooks Online as a service. Within the edit service page on QuickBooks Online you can assign a class. This will automatically update within Cin7 Omni if you have selected the Get Latest Classes, Accounts, Taxes and Service Items from QuickBooks Online link within the QuickBooks Online Dashboard Setting.

Assign alternative GL accounts to

Products

You can apply Alternative GL Accounts to individual products.  When adding a product with an Alternative GL Account to a transaction, the specified account will automatically appear in the Account column of the line item.

To do this you must have first turned on the accounting options for the product page:

  1. Log into Cin7 Omni as an Administrator.

  2. From the left navigation, select Products.

  3. From the top right select the Gear Icon.

  4. Change the accounting dropdown to Yes.

  5. Scroll to the bottom and select Save.

 

To add an Alternative GL Account to a product:

  1. From the left navigation, select Products.

  2. Select the product by selecting the product name.

  3. Under the accounting section, choose the Alternative GL Account from the Sales Account and/or Purchases Account dropdowns.

Any product in an order assigned to an alternative GL will be coded to that GL. The alternative GL account automatically appears in the line item for that product.

Customer/vendor

You can apply Alternative GL Accounts to individual customers or vendors. When adding a customer or vendor with an Alternative GL Account to a transaction, the specified account will automatically appear in the Alternative GL Account dropdown in the Customer details of the transaction.

To add an Alternative GL Account to a Customer/Vendor:

  1. From the left navigation, select CRM.

  2. Select the contact by selecting the contact name.

  3. Under the Accounts section, choose the Alternative GL Account from the Alternative GL Account dropdown.

Any order with a customer or supplier assigned to an alternative GL account will be coded to that account. All products in that order will be assigned to that account unless otherwise specified.

Branch

You can apply Alternative GL Accounts to different branches, this is particularly useful if you have multiple retail stores.

To apply an Alternative GL Account at a branch level:

  1. From the left navigation, select CRM.

  2. Using the Contact Type dropdown, select Branches.

  3. Select the branch by selecting its name.

  4. From the Alternative GL Account/Cost Center dropdown, choose the Alternative GL Account.

Each sale is coded based on the branch. This happens at the time of import - so unlike products or contacts above, it is not visible in the actual transactions. Branch level Alternative GL Accounts are applied unless otherwise defined at the customer or product level. See priorities below.

Manually assign alternative GL accounts

You may choose to assign Alternative GL Accounts manually at the time of sale, either to override automatic assignments or just to apply the Alternative Accounts on a case by case basis.

There are two places you can do this:

  1. Assign at the order level
    To apply an Alternative GL Account to an entire order, click on the Alternative GL Accounts dropdown and choose from the list. This will send all line items in the order to a specific account unless and line item accounts have been chosen (see below).

  2. Assign to a line item
    In a transaction, you can choose an Alternative GL Account for each line item by clicking into the Account column and then selecting from the dropdown list that appears.

How Cin7 Omni prioritizes alternative GL accounts

A transaction can be associated with different alternative GL accounts at once.

For example, if you sell a product assigned to one account to a customer assigned to a different account, then two alternative GL accounts are associated with that sales order.

So how does Cin7 Omni know which alternative GL account to use?

Cin7 Omni prioritizes alternative GL accounts using this hierarchy:

  1. Product: The transaction is coded to the product(s)’ alternative GL account. This priority also applies if you apply an alternative GL at the line item level within a transaction.

  2. Customer/Supplier: If no product is assigned to an account, the transaction is coded to the customer’s or supplier’s alternative GL account. This priority also applies if you apply an alternative GL at the order level within a transaction.

  3. Branch: If no product or customer/supplier is assigned to an account, the transaction is coded to the branch’s alternative GL account.

  4. Default account: If no product, customer/supplier, or branch is assigned to an account, the transaction is coded to the default GL account.

FAQs

Can I edit alternative GL accounts in Cin7 Omni after I create them?

Yes, an Administrator user can edit Alternative GL Accounts after they have been created.

To edit an Alternative GL Account:

  1. Log in to Cin7 Omni as an Administrator.

  2. Click on your name, top right, then click Settings.

  3. From the Accounting Menu, click Alternative GL Accounts.

  4. Find the Alternative GL Account you want to edit

  5. Click on 'Change'.

  6. Makes the changes you need

  7. Click 'Update' on the bottom left

Please Note: Changes made to an Alternative GL Account will only apply to orders created after the change, changes will not apply to historic orders.

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