Ford Financial Statement 2016

Transcription

1 Ford Financial Statement 2016 The laser financial statement will reflect all of the changes. Important: If you do a thirteenth month statement, do not update your financial statement to the 2016 format until you have completed the thirteenth month statement. Initiating the 2016 Account Changes After installing the 2016 update, you must open the parameters screen to initiate the 2016 account changes. 1. Click Compile Statement Data on the Ford Financial Statement menu. 2. A pop-up message will state that you must build the parameters for the 2016 calendar year prior to compiling. If you would like to build the 2016 parameters now, click Yes. 3. A Process Complete Message stating the parameters have been reset to factory specifications for 2016 will open. Click OK to continue. 4. The new parameters and Microsoft Excel template for 2016 will now be available. Important: The new J edit codes are installed and will be critical errors if any of the Asset or Liability accounts contain negative amounts. Net Worth Account 2810 Retained Earnings will be excluded from the J codes. Page 1 of 9

2 Changes to the Financial Statement Page 1 Ford has made major edit rule changes to page 1. New balance sheet changes are being implemented to ensure dealer statements comply with the following principles: o Asset Accounts: Must have debit balances and not be less than zero. o Liabilities Accounts: Must have credit balances and not be less than zero. o Owner Equities Accounts: Must be credit balances and not be less than zero. Net Worth Account 2810 Retained Earnings is excluded from the J edit codes. o Asset Contra-Accounts (asset offset accounts): Must show a credit balance less than zero. o Owner Equity Contra-Accounts (owner-equity offset accounts): Must show a debit balance less than zero. Important: Ford will reject any financial statements that do not employ the above principles until corrections are made and the financial statements are re-submitted. Page 2 No changes Page 3C Added Accounts: 3037/4037: Sales/Cost of Sales Ford GT Retail 3038/4038: Sales/Cost of Sales Ford GT Lease 3300/4300: Sales/Cost of Sales Lincoln Continental Retail 3301/4301: Sales/Cost of Sales Lincoln Continental Lease Page 2 of 9

3 Page 3T Added Accounts: 3562/4562: Sales/Cost of Sales TBD Lincoln Truck #3 Retail 3563/4563: Sales/Cost of Sales TBD Lincoln Truck #3 Lease Note: You may add the new TBD (To Be Determined) accounts at this time or wait until Ford names them. Pages 4, 5, 5M, 6, 7, 7A, 7B, 7C, 7D, and 7E No changes Tip: If the financial statement does not balance after re-entering the lost parameters, one of the first accounts to check is If set up as a cost with a credit balance, it should be in the pull accounts of the parameters. If set up as a cost with a debit balance, it should be in the cost accounts on the bottom of the parameters. Page 3 of 9

4 Notes on Changes to the Statistical Information Screen While compiling the statement, the pop-up box regarding the automatic pull of the A/R to Parts, Service, and Body Shop will no longer appear. That option is now available by clicking the Statistical Information menu s Retail Leasing/A-R Aging button. Check the box next to Auto Pull P/S/B from A/R Customers. This will print on the lower right hand corner of page 1 in the AR Aging Analysis Box. At the bottom of the same screen, you can also check a box if you wish to use retail lease parameters to automatically pull the information into the Rental/Lease Activity Box on the bottom of page 3T. Notes About Net Cash and Actual Working Capital The accounts that affect the Net Cash figure are marked with an asterisk on page 1. To calculate the Net Cash figure on Line 21, add the asterisk-flagged Assets lines together and subtract the Liabilities lines flagged by asterisks. Actual Working Capital (per Ford Motor Company) = Page 1 Current Assets + LIFO Inventory Reserve - Total Current Liabilities Notes About Frozen Capital The Frozen Capital calculations for Used Vehicle Inventory, Parts Inventory, and PSB Receivables can be found on the Ford Accounting Website or on page 4 of the Statistical Worksheet. Print the statistical worksheet to screen as a Microsoft Excel document. On page 4 of the worksheet, hover the cursor on each line of the Frozen Capital section to view the formula for the calculations. Notes About Quick Lane Accounts If you use the Quick Lane accounts, you will have two hits in these accounts when you print from the Scan & Verify Parameters because of having placed the accounts in the M parameters and in the Base Account parameters. For example, account 5402 (Parts Quick Lane Wholesale) does not have a separate line on the Base financial statement and must print in with parameter 5400 on line 1, page 5. To print page 7 for the Quick Lane information only, it must also be included in the 5402M parameter. If you have multiple Quick Lane locations, then 5402A, B, C, D, and E must be under the 5402 parameter and the 5402M parameter. Page 4 of 9

5 Setting Up General Ledger Accounts The new general ledger accounts will be on the 2016 financial statement; however, you must add them into your general ledger. 1. Click Setup. 2. Click General Ledger. 3. Click Enter G/L Account Information. 4. Enter the general ledger account information. Use the tables provided to assist you as you enter accounts. 5. Click Save to save the information. Adding the New Model Sales and Cost of Sales Accounts The following are examples of the information you will enter. Enter all of your new sales and cost of sales accounts following the examples in the table below. You should reference similar accounts in the existing general ledger to determine how an account should be set up. Field Sales Account 3037 Cost Account 4037 Account: Name: Sales Ford GT Retail Cost of Sales Ford GT Retail Type of Account: S for sale C for cost of sale Normal Balance: C for credit balance D for debit balance Schedule Index: 0 for no schedule 0 for no schedule Controlled With: Leave blank Leave blank Distribute Entry: N for no N for no Profit Center: N for new N for new Page 5 of 9

6 Setting Up the Memo: Rental Department Box, First-Time Users Important: Ford made changes to the Rental Department box. The information in this section is provided for double-checking that the parameters are set accordingly and are printing correctly on page 6 under the Rental Department box on your 2016 Financial Statement. If you use accounts 5210 (Rental Dept. Salaries), 5220 (Rental Dept. Commissions-Incentives), or 5230 (Rental Dept. Other Expenses), you must set up these three accounts in your general ledger (according to Ford s Chart of Accounts) as an I (Additions To Revenue & Income) even though Ford treats them as an expense. First, add them into the 5200 parameter account box on the + plus line in the pull box along with the You must also add them in the Memo Boxes. 1. Go to parameter account box 5210M. 2. Move account 5210 from the + plus line in the top pull box to the - minus line in the top pull box. 3. Go to 5220M. 4. Move the 5220 from the + plus line in the top pull box to the - minus line in the top pull box. 5. Go to 5230M. 6. Move the 5230 from the + plus line in the top pull box to the - minus line in the top pull box. 7. When printing the Scan & Verify Parameters, the accounts will not appear with two hits because they are in a Memo Box the second time. Tip: If you use the General Journal screen (Journal 80) to record your rental income, it will not count as an agreement in the Rental Department Memo Box, and you will have to edit the memo counts in account 5200 to get the number of agreements to pull correctly. Page 6 of 9

7 Entering Vehicle Sales Parameters Your new sales accounts must also be entered under your Vehicle Sales Parameters in the Accounting Setup. Enter all of the new accounts using the following method. 1. Click Setup. 2. Click Vehicle Sales. 3. Click Enter Sales Parameters. 4. Click Default New in the list window on the right side of the screen. This will bring in all of the accounts you are currently using in the new car sales. 5. Double-check lines 12 and 14 on the Debit side and lines 12 through 15 on the Credit side. Use the table below to verify the lines. Line B/C or B Field Entry Debit Side 12 Serv. Cost B (for back end) 14 Gap Cost B (for back end) Credit Side 12 Serv. Sale B (for back end) 13 Serv. Payable Blank 14 Gap Sale B (for back end) 15 Gap Payable Blank 6. In Sale Account, type the new sales account number. 7. In Description, type the model name. 8. Type N for new 9. The Journal field will automatically fill in with Enter the sales account number on the Credit side and the cost of sale account number on the Debit side. 11. Verify that the Amount Financed line on the Debit side has an account number listed. 12. Click Save. Page 7 of 9

8 Setting Up the Memo: Utility Expenses Box, First-Time Users Important: Ford made changes to the Utility Expenses box. The information in this section is provided for double-checking that the parameters are set accordingly and are printing correctly on page 6 under the Utility Expenses on the 2016 Financial Statement. Ford will continue to track the amount of the individual utilities used by the dealerships. Use the following as an example to break down the utilities into five categories (Gas-8500A, Electric-8500B, Water-8500C, Sewage-8500D, and Solar-8500E). They must be set up in the general ledger as follows: Gas-Utility Expense Account Account: Name: Type of Account: Normal Balance: Schedule Index: Controlled With: Distribute Entry: Profit Center: 8500A Utilities-Gas E for Expense Account D for debit 0 for No Schedule Leave blank N for no F for Administration These five accounts are already in the Financial Statement Parameters under the Memo Box that appears on page 6. After entering accounts 8500A, 8500B, 8500C, 8500D, and 8500E for gas, electric, water, sewage, and solar, respectively, add these accounts to the parameters in the financial statement under Report Box The Scan & Verify will show two hits. This is correct, as the accounts will print in both the Utility Expense (page 6, line 8) and the Memo: Utility Expenses box (page 6, lines 44 through 49). When paying any utility bills, pay them out of one of the new accounts rather than out of Page 8 of 9

9 Important: The Statistical screen s new option box labeled Retail Leasing/A/R/Aging concerning the automatic pull of the leased vehicles to the Retail Lease Activity box on the bottom of Page 3T will result in the Scan & Verify list showing two hits on every lease sales and cost of sale account. These are memo accounts only on Page 3T and will not affect the balance of the financial statement. Adding Accounts to the Daily DOC You should also add the new sales and cost of sales accounts to your Daily DOC Parameters. 1. Click Reports & DOC s on the Dealership Accounting menu. 2. Click Standard Daily DOC. 3. Click the existing DOC in the selection list. 4. Click Enter Report Parameters. 5. Add the new accounts to the appropriate line or create a new line for the new accounts. 6. Click Save to save the changes. Note: Accounts must be added in the same manner to the Comparison DOC, if applicable. Sales and cost of sales accounts should not be deleted from the Comparison DOC because there will be a comparison of the vehicle sales for last year and the current year. Page 9 of 9