How to use AP Distribution Codes & Sets

Accounts Payable (AP) distribution codes and distribution sets help you process invoices faster. You can use these in the AP invoice entry screens and set default values on the vendor master record.

Distribution Code: replaces a GL account number with a code name

Distribution codes are a handy way of identifying expense accounts without needing to know the account number. For example, FUEL could be the short name for a complex account number 1000-20-30-400.

Distribution Set: groups a series of distribution codes or GL accounts under a single code. You can nominate automatic distribution of amounts by value or percentage, or enter all amounts manually.

Distribution sets help you insert a series of invoice detail lines for different GL accounts by entering a single code. This is handy for expenses that need to be shared across a range of departments, for example, phone accounts or vehicle charges.

To add a distribution code:

• Open Accounts Payable > AP Setup > Distribution Codes. On the screen that appears, enter information in the following fields:
• Distribution Code. Type a code, up to six characters, to identify the distribution code.
• Distribution Code Description. Type a description of the distribution code.
• GL Account. Enter the general ledger account number to which amounts posted with the distribution code are distributed.
• Discountable. Select this option if you want invoice, credit note, debit note, and recurring payable details that use this distribution code to be discountable by default. (You can change the Discountable status when you enter a detail.)
• Click Save.

To add a distribution set:

• Open Accounts Payable > AP Setup > Distribution Sets. For each distribution set, enter the following information:
• Distribution Set. Enter a code to identify the distribution set, using up to six characters.
• Description. Type a description of the distribution set.
• Distribution Method. Select the method by which to apportion an invoice amount among the accounts in the distribution set:

Spread Evenly. This method divides the invoice amount evenly among all the distribution codes in the distribution set. You can then edit the result.

Fixed Percentage. This method lets you specify the percentage of the total invoice amount to allocate to each distribution code. You can specify a negative percentage or a percentage more than 100%. You can also edit the results of this distribution method.

Manual. This method provides no amount allocation; it just enters the distribution codes and lets you enter the amounts of the distribution.

Fixed Amount. This method distributes a specific amount to each distribution code in the distribution set. You must specify a currency code to use this method, and you can select the distribution code only for vendors that use this currency. You can edit the result.

Note: The setting you select determines the default invoice distribution, which you can override at invoice entry.

• Distribution Code. Specify the distribution code you want to add to the distribution set. Once you enter the code, Accounts Payable displays the account description and general ledger account number, so that you can verify them.
• If you are adding to an existing list of codes, click the Add Line button to start a new line.
• Distribution Amount. If you selected Fixed Amount as the distribution method, enter the amount to allocate to the distribution code.
• Distribution Percent. If you selected Fixed Percentage as the distribution method, enter the percentage of the document total to distribute to each distribution code you add to a set. You can use negative percentages and percentages greater than 100 percent, providing the total is 100 percent. Accounts Payable warns you if the percentages you enter for a distribution set do not add up to 100 percent, but lets you add or save the record. Use this type of distribution set when you need to enter additional general ledger account distributions with invoices, but do not want to include the extra accounts in the distribution set.
• Click Save.