A distribution code is a name for a single general ledger account. Distribution codes provide an easy way to specify account numbers when you distribute purchases, because you can make them shorter—and easier to remember—than the general ledger account numbers.
Accounts Payable lets you distribute transactions by distribution set (a group of distribution codes), by distribution code, or by general ledger account number. You select a default distribution method for each vendor in the vendor records.
Once you define distribution codes, you can group them in distribution sets, to provide sets of default distributions for assignment to vendors.
Posting Transactions with Distribution Codes
When you post invoice batches, Accounts Payable creates general ledger transactions for the accounts represented by distribution codes, and lists the information on the posting journals.
Effects of Changes
You can change the description and the general ledger account number assigned to a distribution code, but you cannot change the distribution code.
If you change the general ledger account assigned to a distribution code, the new general ledger account is used only in transactions you add after making the change. Existing transactions will be posted to the original general ledger account, unless you edit the transactions to enter the new account number.
If you change the general ledger account assigned to a distribution code, the new account number is automatically entered in any distribution set records that use the distribution code.
Making a distribution code inactive has the following consequences:
- You cannot select an inactive distribution code as the default code when adding a new vendor group or vendor record.
- You cannot update a vendor group or vendor record that uses an inactive distribution code.
- You cannot assign the inactive distribution code to items, or use it when you add an invoice. (But you can print and post the invoice if you made the distribution code inactive after you entered the invoice.)
- You cannot add or save changes to a distribution set that includes an inactive distribution code.
Deleting Distribution Codes
Deleting codes does not remove any information from your ledger (except the code definition). If you accidentally delete a code, just add it again.
Note: Accounts Payable does not stop you from deleting a code which is part of a distribution set, or a code which is assigned to a vendor record. However, if you delete a distribution code, that code will be rejected when you try to distribute an invoice using the code (even if you are using the code in a distribution set).
Deleting a code after adding an invoice (but before posting it) has no effect on posting. However, you will have to change the code if you edit the invoice, because you cannot save changes to an invoice that uses a deleted distribution code.