A group account is a unique code that links the inventory item, warehouse location and inventory activity to general ledger company, account and center information.

The following diagram illustrates how group account codes link items to inventory accounts:

Group account codes are attached to items. Each inventory item in the Statewide Item File is associated with a single group account code. Items that are accounted for in the same way share the same group account code.

Note: The Office of the State Controller can only add a new inventory item to the Statewide Item File if a group account is specified and already established for that item.

Each group account code is linked to a series of accounting distributions. These accounting distributions are the full range of inventory accounts to be debited/credited for inventory transactions for that set of items.

For example, food items such as flour and spices are likely to be accounted for similarly. In other words, they probably will share the same set of default accounts. In the NCAS, flour, spices and other individual food items will be linked to a single group account code that represents food items. Suppose this food group account is called XXFOOD. XXFOOD, in turn, is associated with a set of accounting distributions. Each accounting distribution is an account such as the inventory asset account, the default expense account, or the inventory adjustment account. When a food transaction occurs, the NCAS uses event identifiers to debit or credit accounts within the XXFOOD group account.