IFS ERP Finance-Fundamental of IFS Posting Control!

Objective:

By the end of this article, you would come to know about the below points

• What is Posting Control and it is different from traditional accounting software?
• The benefit of Posting Control?

What is Posting Control?

Posting control is a like a subledgers which can map with multiple GL Accounts. For example M1 (Inventory), IP1 (Supplier Balance), IP2 (Customer Balance) etc

In IFS Posting control is a feature that triggers the accounting based on the pre-defined business events.

In IFS all the significant business transactions (i.e. Business Events) are coded in such a way, that when the user performs some actions or steps in IFS, the result of the steps ends with the creation of an automatic voucher with the correct journal entry. This reduced lot of manual efforts for accountants while passing journal entries in the accounting system.

Below are some examples of business events

• Book Supplier Bills
• Create Customer Invoice
• Payment to Supplier
• Receipt from Customer
• Sale/Deliver of Inventory
• Purchase of Inventory
• Inventory revaluation
• Issue Inventory to shop floor.
• Receive inventory from shop floor

In IFS, it has been coded that when a business event triggers then a particular posting control will Debit and another posting control will credit.

As a Finance consultant, you must map the logical account with the right posting control based on the control type.

I will explain the control type later.

Let’s first understand posting control mapping.

Ok, so on the successful trigger for every business event there is a voucher posted by the IFS system which creates an accounting entry debit one of the predefined posting control and credits another posting control. For example

Business Even: When the User post the supplier Invoice.

Voucher Entry:

• Debit posting control M18
• Credit posting control IP1

Posting control M18 defined for purchase in IFS

Posting control IP1 defined for Suppliers Liability.

In the same way, all the business events pass accounting entries with posting control on the predefined trigger points, now as an IFS Finance Consultant, it’s your responsibility to map the correct and best suitable chart of account.

So for Posting control M18, map the Interim Purchase Liability or Purchase account, and for IP1, map the Supplier Liability account. In traditional accounting software, an accountant usually creates one GL account for each supplier however in ERP there is no need to create a separate GL account for each supplier because ERP maintains all the sub-ledger balances (i.e. Supplier ID) for each accounting entry.

I will create a separate article, how posting control setup for other sub-processes of finance in IFS. I hope, you enjoyed reading this article, please comment and clapped. Also, let me know if you need an article on a specific topic.