Issue/Symptom/Question

What's an edit rule account?

Environment

• PENTA for Windows
• Finance & Accounting > Setup > Accounts > Chart of Accounts
• Setting up Chart of Accounts in PENTA

Resolution/Fix/Answer

• Adding an edit rule indicates the account is a sub-ledger account, or often referred to as a Control Account. As a user enters transactions, PENTA verifies the account is valid for the current data entry
  • Example sub-ledger accounts: Trade AP, Trade AR, Sales Revenue, and Cost of Sales
• All sub-ledgers require different pieces of information to make the entry complete, and therefore a journal entry directly to an Edit Rule Account is not allowed because information is missing (Vendor Id, Invoice #, etc.)
  • Example: Adjusting Depreciation Balances needs to occur at the Fixed Asset level.  The sum of the Fixed Asset Balances equals the Asset, Depreciation Expense, Accumulated Depreciation, etc., Account Balances.
    • In other words, to impact the Depreciation Balance, the Fixed Asset Id(s) being adjusted need to be known and have the desired overall adjustment occur Fixed Asset Id by Fixed Asset Id.  The Edit Rule Account balances are made up of the control balances (invoice by invoice, asset by asset, etc.)
  • Another Example of when an edit rule can be used is when employees deduct garnishments from their net pay, many companies choose to withhold that with an AP Edit Rule account. They add a Vendor Id so that this garnishment automatically sets up a payment for the Vendor and can be paid through Accounts Payable. When this is set up then there is no need to enter a journal entry, as PENTA accrues and tracks the amount by employee that is owed.
• A CASH edit rule account is the only edit rule that a user is able to do a journal entry to by entering the cash account number along with the OU and Account