User Guide. for Accounting

Transcription

1 User Guide for Accounting 1

2 Table of Contents Introduction... 3 a8 Global Settings... 7 Work Period... 7 Chart of Accounts... 8 Cash Books... 9 a3 GL Transactions... 9 a6 Batch Posting i1 Item Master Blocking Negative Stock Quantities Non-Physical Items c1 Creditors c2 Purchase Orders and c3 Goods Received a2 Payments d1 Debtors d2 Sales Orders and d3 Invoices a1 Deposits / Receipts Bank Reconciliations Note regarding date inputs i2 Item Adjustments i3 Item Transfers a4 Projects Allocating Personnel Costs to Projects a5 Point of Sale Production s2 Business Units Security Profiles

3 Introduction minimalistic (from hereon m_) offers a clean and efficient way of administrating many aspects of your business, such as payroll and HR, accounting and inventory. It is a truly-integrated business management platform, offering a real-time view on your company s activities and performance. Because the core database is integrated, you no longer need to worry about data synchronization issues across loosely-coupled systems. m_ runs on internet protocols, so you can access the database from any web connection, and no longer do you need to worry about maintaining back-end data servers or performing daily back-ups. However, if you prefer, the database can still be hosted on your own server which you could expose to the web if global access is required, or m_ could sit inside a Virtual Private Network. Once your company s database has been set up, you can log on to the main menu: Use the arrow keys to navigate. The right-arrow expands a menu option: 3

4 Move down to the required option:, and press the right-arrow again, or press Enter: On the Main Menu, use TAB to toggle between the tree structure and the search box: To navigate via Search, type the menu item number, then press Enter. The tree structure will then navigate to the option. Then just press the right-arrow or Enter to open the screen: 4

5 You will notice the Q button at the bottom-left of many screens. Press Alt-Q or click on the button to navigate back to the main menu. Screens without the Q button, are called modal screens in the techno-world. It means you have to close the screen before you can freely navigate back to the main menu and other non-modal screens. To jump between non-modal screens, you can either use the stacked icons in Window s task bar: Or you can navigate via Alt-Tab: 5

6 On data capture screens, use Tab and Shift-Tab to move between fields. Input fields having a dotted button or drop-down arrow, can be opened with F4. OK saves new information to the database, and Cancel ignores any changes made and just closes the screen. Useful hints are available via the various context-sensitive Help buttons. The built-in calculator: The top-left yellow value will be inserted into the capture field when you press OK. Whenever you apply a mathematical operation, it will always be between the yellow value and the value you type in the white block. For example: To calculate 400 / 3, you would type 400 and then click or press +. The yellow value will now contain 400. Now type 3 and click or press /: 6

7 a8 Global Settings Before you can start processing accounting transactions, you need to configure the system to match your company s requirements. You also need to consider how and when opening balances will be transferred onto m_. Please refer to Main Menu >> System >> Data Import / Sync for more information on capturing opening balances. Work Period m_ s accounting engine is purely date-driven. This allows flexibility in terms of logging transactions in earlier months or even earlier financial years, whilst still allowing users to continue working in the current period. This flexibility also makes implementations easier in the sense that you can go live with just the crucial opening balances for say debtors, creditors, VAT and bank, and then zero balances for the rest of the GL accounts. As and when the opening balance figures become available from the previous financial system, the work period can be stretched back open to the month-end date of the OBs. But this flexibility should be controlled tightly. For instance, if a transaction is inserted, back-dated by say two years, all financial reports after this date will then be affected. So, normally you would only have the active month open. In the above example, September 2012 is the active month. When you come to the first day of the next month, but there are still outstanding transactions for the current month, you could set forward Max Capture Date by a month, but leave CashFlow Postings Top Date on the current month-end. The system will then allow transactions to be captured over a two-month period. CashFlow Postings Top Date is a mechanism that ensures that transactions are posted in sequential month-order. For instance, if there are open transactions in September and October, the 7

8 system will not allow October transactions to be posted unless all September transactions have first been posted. Please refer to a6 Batch Posting for more information. Chart of Accounts m_ supports general ledger account numbers in the nnn/nnn format, belonging to reporting categories as shown below: Global Accounts can be used to consolidate financial statements across multiple companies that run on m_. Please refer to s2 Business Units for more information on global accounts. NB: A fundamental aspect of Mirror s approach towards optimal financial management, is NOT to use the General Ledger for sales- or project-related financial management. Explicitly un-cluttering the general ledger stems from the minimalistic philosophy. For instance, there is only one Sales 8

9 Account. If you need details on the breakdown of the sales, you would rather draw sales-specific reports via i7 Sales and Inventory Reports. Similarly, you would not open separate income and expense GL accounts for projects. Instead you would use m_ s Projects. Because all reports come from a truly unified database, the control totals in the general ledger will always tally with the totals produced by the detailed reports. Cash Books m_ allows any number of cash books. However, before you can add a new cash book, you first need to create an associated account in the general ledger. Also ensure that each cash book has its own general ledger account. Please refer to a1 Deposits / Receipts and a2 Payments for more information on cash books. a3 GL Transactions 9

10 All roads lead to Rome applied to m_ s accounting engine means that every detailed transaction will ultimately roll up into a general ledger transaction. For instance, when you issue an invoice, the system will create the following general ledger transaction: The View Details button is available for transactions that contain detailed information: 10

11 You can also drill into the details of a general ledger transaction via a specific GL account. Use a7 Per Account Details: Note: IP transaction types denote transactions that originated in the Inventory and Production section of m_. You will also notice that IP transactions are directly posted to the general ledger (The roll-up happens at the same time the transaction is issued). Once a transaction has been posted, the only way to make a correction is to log another transaction. This may seem too rigid, but it is necessary for the purpose of having a strong audit trail. Unlike IP transactions, general ledger journals and CashFlow transactions can remain in open batch. This is particularly useful for bank reconciliation purposes or verifying the effect of journals before posting(committing/rolling-up) the transactions to the general ledger. Examples: Journal to bring in say opening balances from the old financial system: 11

12 Since the transaction has not yet been posted, you can still modify it if necessary. To see what effect the transaction will have once posted, without having to first post the transaction, use a7 Per Account Details and ensure to uncheck the box Skip Unposted before you click GET : Similarly, an unposted Deposit remains in open batch: NB: Under a9 Reports: Even though the Cash Books, Debtors and Creditors reports WILL report on unposted transactions, the Per GL Account reports will NOT. The Balance Sheet and Income Statement should therefore not be released as final unless you have ensured that all transactions up to the reporting period-end have been logged and posted. As can be seen above, the balances on the Balance Sheet do not yet reflect the effect of the open/unposted transactions. Once you are satisfied with the logic of your open batches, you should post them to avoid accidental changes whilst in open batch. General Ledger journals are posted via a3 GL Transactions (select specific transaction)>> Post, and cash book transactions and debtor and creditor journals, are posted via a6 Batch Posting. 12

13 a6 Batch Posting The six transaction types shown above are called CashFlow transactions. You can use a6 Batch Posting to check the posting status currently on the system of all open-batch CashFlow transactions, as well as for open General Ledger Journals and open POS transactions. Receivables and Payables are used to facilitate Debtor and Creditor transactions. For instance, when you issue an invoice, the system automatically creates and posts a receivable. Similarly, when you log a Goods Received transaction, the system automatically creates and posts a payable. Debtor journals are loaded as either positive- or negative-value receivables, with negative-value receivables showing up as Unposted Credit Notes / Discounts on the a6 screen. Similarly, creditor journals are loaded as either positive- or negative-value payables, with negative-value payables showing up as Unposted Debit Notes / Discounts on the a6 screen. Some debtor and creditor journals may require two transactions. For instance, say Company XYZ has both a debtor and creditor account with you. Lets say as a creditor, you owe them R10,000.00, and a debtor, they owe you R7, To set off the debtor s balance against the creditor account, you would load a negative receivable of R7, against XYZ s debtor account, specifying 999/999 Debtor/Creditor Journal Clearing Account as the contra-account. Then you would load a negative payable of R7, against XYZ s creditor account and also specify 999/999 as the contraaccount. Another example, say you refund a debtor. The first transaction would be a Payment with 999/999 as the contra-account, and the second transaction would be a negative receivable also specifying 999/999 as the contra-account. 13

14 The same mechanism of negative receivables and negative payables is used by the system for IPgenerated credit notes and debit notes. For instance, if a client returns faulty items, you could load an invoice with negative quantities via d3 Invoices >> Reverse. This will create a negative receivable linked to the negative invoice. (The system will however print the negative invoice as a Credit Note). The same negative symmetry applies to Goods Received and Payables. i1 Item Master The item master must be set up before you can load sales orders or purchase orders or any other type of stock-related transaction. New items can be imported via Excel (Main Menu >> y7 Item Master), or use Add or Copy-Add : 14

15 The Moving Average Cost Price is automatically maintained by the system for Physical Items, and a stock count per warehouse is also maintained. When physical items are GRVed, the Stock account in the Balance Sheet is debited, and the moving average cost is adjusted if necessary. When physical items are invoiced, the Stock account is credited at the current moving average cost price. It is therefore important to perform stock transactions in the correct order (GRVs before Invoices). For instance, lets say an item s current moving average cost is R100.00, and you have placed a purchase order at a latest cost of say R110 per unit. If you now invoice items BEFORE receiving the new stock, the system will record the cost of sales at R100 per unit in stead of what the moving average would have been had you first completed the GRV. The accuracy of stock costing can be monitored via i7 Sales and Inventory Reports >> Inventory / Warehouses >> Current Inventory Valuation: 15

16 A zero or small variance between [Inventory Value (= Item quantities * Moving Average) ] and the [balance of the Stock Account in the general ledger] indicates that stock transactions are recorded accurately. Blocking Negative Stock Quantities To improve the accuracy of stock transactions, you can dis-allow any stock transaction that would result in negative stock levels. This global switch is available under s0 Global Settings: During a m_ implementation, stock levels may not be available at the time of going live. In such case, you would leave the global switch on No and then only later, once the item master has been tidied up and correct stock levels have been loaded, would you start to block transactions that would result in negative stock levels. Non-Physical Items The system logically does not maintain quantities per warehouse nor moving average cost prices for non-physical items. 16

17 Thus, when non-physical items are invoiced, the cost of sales for the line item will be zero, and no adjustment is made to stock levels. When non-physical items are GRVed, in stead of debiting the Stock account as would be the case with physical items, the system will rather debit an expense account (or balance sheet account) that you specify for the line item. In the above example, 420/000 will be used as default when you load the item onto a new purchase order. NB: m_ tracks the back-order status of sales orders and purchase orders per stock code, and NOT per line number. This means that stock codes cannot be duplicated per order, otherwise the backorder status calculation may go awry. You would typically set up a few generic non-physical stock codes, such as STA1, STA2, STA3 etc, and then just over-ride the description per line item on the sales or purchase order. The purchase order example on the next page demonstrates m_ s nonduplication requirement. c1 Creditors Before you can place purchase orders and receive goods, you need to open creditor accounts for your suppliers: When you open a creditor account, you can specify the Initial Contact Person. The system will then add this person to the list of contact persons linked to the creditor account. You can have any number of contact persons per creditor (or debtor) account: 17

18 You would capture mobile numbers and addresses per contact person, rather than on the creditor account. The * in front of the Tel Number, as shown above, indicates that the telephone number was captured on the creditor screen on not on the individual contact person record. c2 Purchase Orders and c3 Goods Received In the above example, an order is being placed against supplier XYZ for the amount of R450 excluding VAT. Note that stock codes are not duplicated, and that we have specified the GL account to be debited per line item. 18

19 When you receive the goods later, you would locate the order on the system, and then go Schedule : The Scheduling feature allows you to manage partial deliveries. For partial deliveries, you would Edit the quantity received per line item. In the above example, the supplier delivered in full. NB: Ensure to check the Scheduled amount. This should tally with the supplier s invoice. You should NOT proceed with the GRV if the amounts don t tally. If there is a variance, either you have to adjust your purchase order, or the supplier needs to issue a correct invoice. Once the Scheduled amount matches the supplier invoice, you would click Generate GRV upon which the system creates and posts the appropriate transaction in the general ledger: 19

20 a2 Payments Payments will always credit the selected cash book, and debit either the Supplier Control Account or a different GL Account. In the above example, we are paying supplier XYZ. After selecting the supplier, click on Get Open Items. This will bring up a list of payables that have not yet been settled fully, and you can then explicitly allocate the payment to one or more payables. 20

21 Some payments are set off straight against a GL Account. For instance, for bank charges, you would normally not have raised a goods received (or payable) before you did the payment transaction. For these payment transactions, you would leave blank the Creditor Account, and rather specify an appropriate GL Account. You can also claim VAT if applicable. (When paying a creditor, you will notice that the VAT Applies checkbox is disabled. This is because VAT was already claimed when the GRV was logged.) You may also have noticed the RIDC button on the above screen, and various other screens. RIDC stands for Re-open Internet Database Connection. Due to the unstable nature of the internet, your connection might drop whilst working on a data capture screen. If you fill out data and press OK, a network-related error may appear. In such cases, do not cancel the transaction. Just click RIDC and re-try the OK button. We have found that the internet is quite stable over ADSL connections, whereas wireless connections necessitates the RIDC button more frequently. d1 Debtors Debtor account information can be imported via Excel (refer to Data Import / Sync >> y3 Debtors) or via the Add button: 21

22 d2 Sales Orders and d3 Invoices As with purchase orders, sales orders can also consist of physical and non-physical items, and the non-duplication-of-stock-codes-rule also applies. For partial or full deliveries, you can use the Schedule button: 22

23 Then generate the invoice: The One-line Description will appear on the debtor s statement as a summary of the invoice. The default one-line description can be set under a8 Global Settings >> Document Templates / Other: For more information on setting up source documents with your company s logo and addresses, click on the Help button above. 23

24 a1 Deposits / Receipts When you receive money from a debtor, the Description will appear on the debtor s statement. To add entries to the drop-down list, type the description and press F5. When you receive money from sources other than from debtors, say interest received on your bank account, you would leave blank the debtor account and specify an appropriate GL Account. Per debtor account, you can specify either an open-item or balance-forward format for the statement (Page 2 of the Edit Debtor screen): Open-item format: The client can see the outstanding amount per each receivable. Balance-forward format: Transactions are just listed chronologically. 24

25 Bank Reconciliations With the arrival of internet banking, the task of bank reconciliations has become much easier because all internet transactions are by default reconciled. In the event of having to load a deposit or payment that will only later show on the bank statement, leave the Bank Statement Date blank, and set Reconciled to No. Later, when the transaction goes through on the bank statement, locate the un-reconciled entry via the Filter: Then select the deposit in the list, and press Alt-F7: Note regarding date inputs Dates can be typed in various short formats such as 2 3 (2 March of current year), or (2 March 2004), or 5 Feb (5 February of current year). Use the up and down arrow keys to move a day at a time, or Ctr-Up/Down a month at a time. F4 opens the calendar. 25

26 i2 Item Adjustments You can adjust stock levels either upwards or downwards via Item Adjustments. Upward adjustments will debit(increase) the stock account, and downward adjustments will decrease(credit) the stock account. Moving Average costings at the time of loading the item adjustment, are used as the basis for the stock value change calculation. The GL account that is linked to the item adjustment type, will receive the contra-leg of the transaction: The above item adjustment results in this GL Transaction: 26

27 i3 Item Transfers Item transfers have no associated accounting entry. Stock quantities are merely moved between warehouses: The VQ button above (and on other stock-related screens), shows what the stock quantities will be once the transaction has been logged: Item movements can also be viewed via the Item Master >> Availability / Movements: As can be seen above, item transfers have no associated accounting transaction. 27

28 a4 Projects Each and every transaction on the income statement can be assigned to one or more projects. The profit or loss that you see on the income statement, can then be shown per project. You can open projects, also known as profit objects, for any managerial purpose. Some projects will be projects in the classical sense of the word, whereas other projects can serve as internal cost centers. As you can see above, various documents such as Sales Orders and Purchase Orders can be linked to a project. Via this link, when the invoice or GRV is later logged, the incomes and expenses allocations are automatically linked to the project. Use the GL Matching feature to verify the allocation status of all incomes and expenses: 28

29 Allocating Personnel Costs to Projects Even though you can assign employees to projects and collect hours via time sheets, the true cost of employees occurs when the month-end payroll journal is posted: The expense items of the payroll journal will then appear on the GL Matching screen: You can now use any statistical method of allocating the costs to the projects. All you need is an Excel spreadsheet showing each project s relative cost attraction. In the example below, you could choose to use either column D Hours worked, or column G Cost / Pay as basis for the cost splitting: 29

30 Once you have logged the payroll journal and set up the cost allocation spreadsheet, you can quickly assign the employee expenses by pointing to the spreadsheet: Tip: Ensure to tick the Excel Import Mode box when you start with allocations via Excel. And repeat for the other expense items. 30

31 a5 Point of Sale You need to open at least one user account for Till-mode before you can use m_ s POS feature: You would typically open one controlling user account per branch, each linked to a separate POS Control Account. You also need to set up names of the individual till operators per branch: To activate the POS, log onto m_ with the controlling POS user account: m_ will then open in POS mode: 31

32 Loading a new POS transaction: 32

33 Completing the POS transaction: And day-end cash-up: (Log on again as a normal m_ user.) When you perform >>> POST TO GL, the system will roll up all the POS transactions for the day into one general ledger transaction: (You can cash up per branch if so required.) 33

34 The POS Clearing account will be cleared as and when you bring deposits into the system: Debit and Credit card transactions that you capture from the bank statement, will also have the POS Clearing Account as the contra-entry. In the example above, we received R cash, but we only deposited R The balance that remains on the POS clearing account, thus represents [float in the till(s)] plus [debit and credit card transactions that have not yet been captured from the bank statement]. Production m_ allows the creation of assembled stock items through Bill-of-Materials (BOMs). When you perform a Production Output, the system increases the stock count of the manufactured/assembled items, and decreases the stock levels as per the BOM. You can also include into the BOM theoretical non-stock costs (recoveries for electricity, labour etc) as a means of measuring productivity, and also as a means to substantiate an inflated stock value of manufactured items at year-end where the recoveries component of stock on hand can be viewed and journalized as a pre-paid expense. Production is quite a complicated topic, especially if you start to deal with multiple levels in the BOM. More information is available from our website and in m_ s help files. It is highly recommended that you thoroughly experiment with these features on a demo company before you attempt to implement production. 34

35 s2 Business Units Business units can be used as a high-level management and reporting unit. Debtors and Projects can be linked to business units, and as such allows for useful reporting. Different source document templates can also be assigned to business units. For instance, you may have two branches and would like different invoice templates with banking and address details for the specific branch. Business units can also be used to consolidate financial reports across multiple companies that run on m_. Security Profiles Security Profiles can be created for individual users, or a profile can be shared by users having the same roles and responsibilities. The profile determines to what extent the user can access various parts of the system: 35