The purchase ledger consists of two levels allowing for increased management control of the ledger – these two levels are known as the Master and Transaction. The Master account level holds key information such as the payment schedule and settlement terms as dictated by each supplier. The Transaction account level holds the invoices posted to supplier accounts and the payment made in settlement of these invoices. Cheques, remittances and reports may be produced by the system to control payments due and the management of creditors. Vehicle creditors are dealt with separately within the Vehicles module.
The ability to store master and transaction level accounts offers flexibility, dependent upon the company structure and on the requirements of the businesses to which parts or services are bought from. The diagram below explains the relationship between a master account at enterprise level and numerous transaction accounts stored at divisional level in the system – assuming that a multiple division set up exists:
In this set up, each division within the business has a transaction account – allowing individual dealerships to view the credit of their particular supplier. By linking both transaction accounts to a single master account, reporting can be consolidated to view the total credit across the divisions at the enterprise level.
Alternatively, it may be feasible that the business to which parts and services are being supplied from have different branches that require separate invoices from a single division within the company structure:
The Master Account & Transaction Account section of the module is used to create or amend details of Master or Transaction level sales ledger accounts as required.
Search for the account to be created or amended. In the scenario of creating a Purchase ledger account for the first time, select the Master Account option from the main menu.