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Location overrides in Inventory Control

Problem Details:

What are location overrides and how do they work?

 

Solution:

Location overrides are turned on in IC Setup / Locations on the Integration tab.  The field name is 'Override GL Account Segments'.  This enables replacement (override) of segments in GL accounts when Inventory Control transactions are created, and involve items from this location.  Any segment, except the account segment, can be overridden.  Therefore, in order for location overrides to work successfully, the GL accounts must contain at least one segment besides the account segment.  After selecting the option to 'Override GL Account Segments' a new detail grid is displayed.  Here, the user must specify the segment to override, as well as the segment code with which to replace the segment. 

Location overrides are useful for valuing stock by physical location, or itemizing revenue and cost by location.

In the example above, if an item is sold from location 4, and the revenue account is defined in the Category as going to account number 4010-100-10, this particular transaction will go to GL account number 4010-100-40 because of the location override of the 3rd segment called Region.  Any GL account associated with the transaction will attempt to be 'overridden' such as cost accounts or internal usage accounts. 

Note that if the gl account created by the location override does not exist in the GL chart of accounts, then an error will be returned in the GL when the entry is posted and an error batch will result.  The account will need to be created, or the account changed in the JE before posting again.

 

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