Enterprise by HansaWorld Accounting Basic

Transcription

1 Enterprise by HansaWorld Accounting Basic Version 7.2, Mac OS X August 2014

2 Table of Contents INTRODUCTION...4 Bookkeeping...4 Single Entry / Double Entry...4 Chart of accounts...4 The five types of accounts...4 Asset accounts (A)... 4 Equity accounts (A)... 4 The Equity shows the value of a company. It consists of at least two accounts. The Share Capital and the Result of Current Fiscal Year... 4 Liability accounts (L)... 5 Income accounts (I)... 5 Expense (E):... 5 Basic elements and fundamental equation...5 Debit & Credit...6 Sales Tax and Salaries...6 What is Sales Tax... 6 Example: Phone Bill... 7 Salaries... 7 GENERAL LEDGER REGISTERS...8 Accounts...8 Misc Flip... 8 Text Flip... 9 Objects...9 Transactions...9 Header Footer Matrix Flip A Flips B D Flip E Flip F Flip G Automatic Balance Function Correcting Transactions...12 First option Second option Other Operations Menu Functions Simulations...13 Account Reconciliation...15 Budget...15 Printing Budget Definitions...17 Revised Budgets...18 Brought Fwd. Balances...19 SETTINGS...20 Account Short Codes...20 Auto-transactions...20 Number Series...21 Object type controlling...21 Object Types...22 Presentation of Balances...22 Reconciliation Descriptions...22 Sub Systems...22 Enterprise by HansaWorld Accounting Basic page 1/76

3 Sub-ledger Control Accounts...23 Transaction Settings...23 Tax Codes...24 Tax Template Code Control...25 DUAL & MULTI CURRENCY...26 Base Currency...26 Base Currency Rates...26 Exchange Rates...26 KEY FINANCIAL RATIOS...28 Defining...28 Assisted Formula Entry...29 Columns...30 Flip A Flip B Flip C Key Financial Ratios - Printing...32 ACCOUNTS RECEIVABLE...33 Settings...33 Account Usage A/R Account Usage A/R Debtors Tab Tax / Tax Tab Exchange Rate Tab Sales Tab Credit Tab Payment Terms...36 Payment Modes...37 Flip A Flip B Flip C CREATING INVOICES...40 Invoices...40 Entering an Invoice - Header Entering an Invoice - Terms Tab Entering an Invoice - Items Tab Flip A Flip B Entering an Invoice - Currency Tab Entering an Invoice - Delivery Tab Entering an Invoice - Identifiers Tab Entering an Invoice - Footer Creating Credit Memos...42 Credit Memos - Invalidating Invoices...42 Creating Receipts...43 Flip A Footer Receipts in Currency...45 Checking and Approving Receipts...45 General Ledger Transactions from Receipts...45 Add Settlement Discount Add Write-Off Add Fee Distribute Receipt Calculate Amount Create Down Payment How to use a prepayment...47 Enterprise by HansaWorld Accounting Basic page 2/76

4 On Account Receipts...49 Creating an On Account Receipts Correcting Mistakes in Receipts...50 ACCOUNTS PAYABLE...51 Settings...51 Initial Set up...51 Creditors Tab Tax Tab Rate Tab ENTERING PAYABLES...54 Payable Register...54 Entering a Payable...54 Terms Tab Flip B Flip C Currency Tab Comment Tab Accounts Tab Payments...59 Entering a Payment...59 Header Flip A Flip C Flip D Flip F Flip H Flip I Footer On Account Payments...61 Prepayments...62 On Account Payments...64 Correcting Mistakes in Payments...64 YEAR END...66 Spreading income and costs over time...66 Profit/Loss...66 Balance Sheet...67 REPORTS...69 General Ledger...69 Balance Sheet...70 Profit & Loss...71 Defining Reports...72 EXERCISES...73 General Ledger...73 Accounts Payable...74 Accounts Receivable...75 APPENDIX...76 Terminology between different versions of English language...76 Enterprise by HansaWorld Accounting Basic page 3/76

5 INTRODUCTION Profit is the main reason for starting a business, and how this profit is reached needs to be measured. For this purpose you will need economical and financial information. To satisfy this necessity, internal control has to be practiced together with commercial transactions; this has to be done in accordance with Accounting principles and norms. Bookkeeping Every business event, invoice or receipt should be put into the books in the order that they occur. They are then called transactions. When a transaction is written into the books it must not be erased or made unreadable. According to the law, changes can be done by making a red line through the incorrect transaction in a way that it still is possible to read the original transaction. A new transaction with the correct data can then be entered. Together with every change there must be a note about who made the change and when the change was made. Single Entry / Double Entry There are two types of bookkeeping: the Single and the Double entry type. In the Single Entry system, the books consist only of one side. Transactions are written below each other and at the end a sum is calculated showing either a gain or a loss. An example of a single entry is what you normally do in a simple expense note book. In the Double Entry system, the books consist of two sides and each transaction is recorded on two accounts. Chart of accounts An average company normally has a large number of accounts. Even a small company can have accounts. In order to make the use of accounts easier, the legal or tax authorities in most countries have published a standard chart of accounts. In this way they ensure that companies use a similar chart of accounts, which helps the controlling authorities to check the books. These standard chart of accounts might be slightly different depending on your type of business. When a company selects a chart of accounts you normally start from a standard chart of accounts suitable for the type of business and the bookkeeping laws in the country. Even if you start from a certain standard chart of accounts there is nothing that says that you must follow it completely. If, for example, there is an account for Buildings and the company doesn t own any buildings you can just remove that account from the chart of accounts. In the same way you can add accounts. If the company has multiple lines of business you can expand the chart of accounts to differentiate the different parts. It is good to discuss the chart of accounts with the company s auditor or accountants. The five types of accounts To know when a certain account is to be debited and credited a chart of accounts can be divided into five different types of accounts. ASSETS (A) EQUITY (E) LIABILITY (L) INCOME (I) EXPENSE (E) Asset accounts (A) These accounts contain things that the company owns. All accounts that contain the company s available funds (cash, bank account, etc.) are asset accounts. Any machines and inventory the company owns are also in the asset accounts. If the company has debtors like customers that owe the company money then this is seen as an asset (accounts receivable). The account debtors is therefore an asset account. On the other hand, if a customer has paid in advance then this should be booked on the account for prepayments from customers, this should be seen as if the company owes the customer money and is not an asset account. Not everything a company buys is automatically an asset. Some items that only have a minor value are rather seen as an expense. This would be, for example, pens, chairs, coffee for the office and similar things. More detailed information about expense accounts is provided on the next page. Equity accounts (A) The Equity shows the value of a company. It consists of at least two accounts. The Share Capital and the Result of Enterprise by HansaWorld Accounting Basic page 4/76

6 Current Fiscal Year The share capital is cash or other assets introduced into the business by the owners. This share capital has to be brought before the company is founded. The sum is prescribed by law, and differs according to the country and which type of company it is. The Result of the Fiscal year is the profit or loss that has been made. A loss will reduce the share capital and a profit will increase it. How to work with Equity accounts has to regard very specific legal rules. It is not handled as an asset account but rather seen as an account that contains the companies liability to the owners. Most companies are started with the help of money from the owners. These funds are to be seen as a liability to the owners. Liability accounts (L) These accounts contain the liabilities (debts) that the company has. This includes all debts to the Vendors, which are short term debts, but also long term debts like loans. Normal liability accounts are accounts payable and bank loans. Income accounts (I) You maybe hope that the most of the accounts would be income accounts but that is not the case. Just a few accounts are normally income accounts. An income or revenue comes up when the company sells a product. This is the most common type of income. As an income it does not matter whether the sale was paid by cash or through an invoice income is income. If we send an invoice to a customer the income accounts are affected in a positive way. The income accounts can also be affected in a negative way if we send a credit memo to a customer, which means that the customer returns the goods and wants his money back. Expense (E): The expense accounts contain the company s costs. Salaries, Rent, Purchase of goods, Transportations, Interest are examples of expense accounts. Everything that the company pays that is not to be considered as an investment for the future and that does not have a long lasting value is to be seen as expenses (costs). A phone bill is an expense like salary, rent, electricity etc. An example of an investment would be a machine used in production. This is never considered as a cost, because the machine will be used for producing and therefore generate value for the business. The machine is an investment and will therefore be recorded on the asset accounts. Only items that are of minor value are counted as expenses. This can also be small office equipment like chairs, cutlery for the canteen, pens and similar things. Basic elements and fundamental equation Accounting is based on three fundamental elements namely: Assets, Liability and Equity. These three elements are combined into the most important accounting equation: Assets = Liability + Equity Assets: A useful and desirable thing or quality, a single item of ownership having an exchange value Examples are: Property, Bank, Accounts Receivable Liability is: Moneys owed; debts or pecuniary obligations Examples are: Loans, Overdrafts, Accounts Payable Equity is: The owners interest in the assets of a business. Owners Equity includes the amount invested by the owner plus the profit in the enterprise. Profit consists of 2 elements namely Income & Expenses. These 2 elements are combined in the following accounting equation: Profit = Income Expenses Enterprise by HansaWorld Accounting Basic page 5/76

7 Debit & Credit All transactions are entered into T-Accounts. The left side of the T-account is called the debit and the right side of the T- account is called the credit. The question now is what element is entered on the Debit side and what element is entered on the credit side? The answer to this question is very simple and can be illustrated by the following: Asset: When an asset increases (+) it will be entered in the Debit side. When an asset decreases (--) it will be entered in the Credit side. Liability: When a liability increases (+) it will be entered in the Credit side. When a liability decreases (--) it will be entered in the Debit side. Equity: When equity increases (+) it will be entered in the Credit side. When equity decreases (--) it will be entered in the Debit side. Income: When an income increases (+) it will be entered in the Credit side (It is the same side as equity because it increases the owner s Profit.) When an income decreases (--) it will be entered in the Debit side. Expense: When an expense increases (+) it will be entered in the Debit side (It is the opposite side as equity because increase in expenses will decrease the owner s Profit.) When an expense decreases (--) it will be entered in the Credit side. Sales Tax and Salaries What is Sales Tax In most cases when a company creates a bookkeeping transaction there is Sales Tax that must be booked. But first of all what is Sales Tax? Sales Tax is a tax on the value that is added to a product when it passes through your company. This tax is very similar to the Sales Tax that every person pays whenever they buy a product. In every product there is a specific percentage of tax included. For example: Henry, a carpenter manufactures 500 chairs during one year. In order to do this he must buy wood, glue, paint and fabric for the seats. At every purchase he must pay Sales Tax. The carpenter also has other indirect costs in his operations. For example phone costs, tools, transportation costs etc. The difference between every normal person that pays Sales Tax and companies, is that companies will get back the Sales Enterprise by HansaWorld Accounting Basic page 6/76

8 Tax they pay. This means that the cost of Henry s purchase is the amount paid minus the Sales Tax amount. There is a very simple reason for this. If a product is produced and enhanced by more than one company, and if they would have to pay the Sales Tax themselves, the product will become more and more expensive for the end customers (as Sales Tax is part of the purchase costs and therefore included in the later sales price). Therefore, companies can get the Sales Tax they paid back from the financial institution and the final Sales Tax is only paid by the end customer. Let's say that he has paid 5000 USD for cost in his operation during the year. If the Sales Tax was 25% then he has paid 4000 USD USD output Sales Tax (25%), thus 5000 USD in total. Since he will get back the Sales Tax, his costs are 4000 USD in total. The value of the chairs can be seen as 4000 USD. If they are sold for 9000 USD the value that was added by manufacturing the chairs was 5000 USD. When selling the chairs for 9000 USD he must also add 25% Sales Tax, the total price for the chairs will then be USD including Sales Tax. The carpenter has paid 1000 USD in Sales Tax when buying the materials and he has received 2250 USD as input Sales Tax. The difference = 1250 USD is what the carpenter must pay. This is 25% of the value that was added when manufacturing the chairs * 0.25 = 1250 USD. There are two different types of Sales Tax accounts. Asset accounts for Sales Tax used when we buy something. This is seen as an asset since this is the what we are allowed to deduct when reporting Sales Tax to the state. This it what we get back. Liability accounts for Sales Tax. When we invoice Sales Tax to a customer, the Sales Tax is a debt to the state that should be paid in connection to reporting Sales Tax to the state. Example: Phone Bill We book phone costs that we have paid in cash but this time we include Sales Tax. Let s say the bill is 125 USD in total (100 USD + 25 USD Sales Tax). First we should determine what account is affected (the cash account, the phone account and the asset Sales Tax account called Sales Tax Inputs Receivable). We can ourselves conclude in what way to book the different accounts. We know for sure that the amount we have paid (125 USD) will decrease our cash account. Since the cash account is an asset account we will credit the cash account with 125 USD. Now we can decide to either book the phone cost or the Sales Tax. Normally you see the Sales Tax amount clearly on the invoice (25 USD), let s start with the Sales Tax. The Sales Tax account to be used is an asset account. Will our asset increase or decrease when paying for the phone costs? It will increase because the state will owe us the Sales Tax amount paid. So the Sales Tax should be booked in debit (the asset account increases). We have now debited 25 USD and credited 125 USD. The difference is 100 USD. The cost is increased by the transaction. The phone account is an expense account, thus the phone account should be debited. Salaries Paying salaries is another transaction where more than two accounts are used. We need to decide how the salary should be paid. By cash, bank transfer, check? The company will get a salary cost but the whole salary must not be paid to the employee. The state should get its part, which is the employee tax that the company must pay on the employee's behalf. Therefore, we must withhold preliminary tax which is later paid to the state. Let s do an example: Lisa earns 1500 USD per month. On the account Wages and Salaries we book 1500 USD (expense account, the cost increases, thus it needs to be debited). We must withhold 30% of the salary (500 USD) that the state later will receive. In the meantime we get a debt to the state of 500 USD. On the account for tax to be paid we book 500 USD (liability account, the liability increases, thus credit). The rest of the salary we can pay in cash. So book 1000 USD on the cash account (asset account, the asset decreases, thus credit). Now the transaction is balanced but we also must book the employment tax. When we have a salary cost of 1500 USD we also get a debt to the state for the employment tax of about 30% (varies between different countries) or 520 USD. We book this debt on the account for accrued employers tax. The employers tax is a cost for the company (liability account, debt increases, thus credit.) The employment tax is also a cost for the company. On top of Lisa s salary on 1500 USD we must also pay 520 USD to the state. We book the employment tax on the account tax for wages and salaries (cost account, cost increases, thus debit). We have now a total of 2020 USD in debit in our transaction and 2020 USD in credit of our transaction. The transaction is in balance and is now ready to be posted. A salary transaction can contain many more lines than this. Examples of other entries can be allowances, union fees, expenses etc. Most companies use special programs to calculate salaries. Most accounting systems do not contain a salary module. From the stand alone salary application you usually receive a list showing how the salary should be booked in the accounting system. Enterprise by HansaWorld Accounting Basic page 7/76

9 GENERAL LEDGER REGISTERS Accounts This register allows you to enter the entire chart of accounts. Misc Flip Account: Enter a unique Account Code. Name: Enter the Account Name. Autotrans.: Paste special [ +Enter] to add an auto transaction which should always be allocated if a posting to this account is made. Tax Code: Paste special to select a tax code to be added to the tax code column if a posting to this account is made. Currency: This field allows the user enter a Currency Code, which helps to manage the Transactions in a specific Currency. Tax Template: Paste special to select a Tax Template setting, whenever this account is entered on the Invoice or Payable, this Tax Template record will be brought in automatically. Classification: Paste special to Account Classifications setting, you can add more than one classification here. SRU Code: Only used in Sweden. Enter a SRU code in this field. Consolidation A/C: This field can be used to create a relationship between Mother/Daughter companies and present numbers from the Daughter company in the consolidated reports of Mother company - enter here an account existing in Mother company on which the numbers from this account should be presented. Accrual: Paste special to G/L Accruals, whenever this account is entered on the Invoice or Payable, this G/L Accrual record will be brought in automatically. Auto Autotrans.: Paste special to add an auto transaction which should always be allocated if a posting to this account is made in sub systems - the auto transaction will be used automatically. Account Type: The radio buttons allow the user to define what kind of account it is. Assets represent the company goods and they are exposed in the balance sheet. Liability represents the company payable accounts and they are exposed in the balance sheet. Equity represents the owner money and they are exposed in the balance sheet. Income represents all sales and they are exposed in the profit & loss. Expense represents all company costs and they are exposed in the profit & loss. Normal Amount: If the normal posting to the account would be on the debit side, tick debit, or if the normal posting to the account would be credit, tick credit. If it is normal for the account to have both debit and credit postings for example a bank account, tick both. Once ticked the system can be setup to warn if you are posting to an account but not to its normal posting side. Enterprise by HansaWorld Accounting Basic page 8/76

10 Closed: Check this box if you want to close the Account for further transactions. You will no longer be able to use it or post to and it will not appear in the 'Paste Special' selection window. If you want to open the Account again later, you simply click in the box again to remove the check mark. Group Account: If this is checked, this account code is a Group account. It is the second level. You can t enter transactions with this account code. Reduce Minorities: Concerns Mother/Daughter companies relationship. If this box is not checked, the whole balance of this Account will be included in consolidated reports, even if there is a record in the Owner Percentage register. This can be correct, depending on the type of the Account and on local legislation. Text Flip In this matrix you can enter a Language Code and the Account Description according to the Language. Objects An object is a tool to create multidimensional analysis within your chart of accounts. It allows reports to be run to very specific requirements and thereby have a very specific view of the different parts of your business. When an object is set up it can be attached to a product, sales person, customer, Vendor, etc. and will automatically flow through all relevant transactions to the General Ledger. You can set up the system to force users to enter the relevant object code against transactions to ensure data integrity. There are a wide range of reports that can be run by object or range of objects. To enter an Object: Object: Enter a Code for your Object. Name: Enter the Object Name. Object Type: Enter an Object Type, this helps to organize your Objects. Hierarchy Objects: Enter an Object Code. When you enter a Transaction and include an Object with a Hierarchy Object, the system will automatically enter the Object Code typed in the Hierarchy Object field, plus this Object Code. Transactions In a Company, all accounting events are entered as Transactions. Depending on the nature of the Transaction, this can be done directly to the Transactions register or remotely from the Accounts Payable and Accounts Receivable, or the Inventory Module. Enterprise by HansaWorld Accounting Basic page 9/76

11 There are four things you can do with your Transactions: " Enter transactions " Inspect transactions " Make corrections " Print transactions To enter a Transaction, you first need to open the Transaction register in the Master Control panel. Then, click [New] in the Button Bar or use the -N keyboard shortcut. Alternatively, highlight a Transaction similar to the one you want to enter and click [Duplicate] on the Button Bar. Header No: When creating a new Transaction, Enterprise will enter the next unused number from the current number sequence. You may change this number, but not to one that has already been used. If you are working in a multi-user environment, the Transaction number is assigned when the Transaction is saved. Trans. Date: In this field you can use Paste Special to select the current date. The date of the Transaction does not have to coincide with the date when the Transaction was recorded. The last used Transaction date is offered as a default. Reference: An optional reference field whose contents are shown in the Transactions: Browse window. Text: A short description of the Transaction. If the transaction is created from a sub system, the information from that sub system record will be entered here. Footer Difference Base 1: Any difference between the sum of the debited and credited amounts is shown here: the two sums must be the same before the Transaction can be saved. A balancing entry shows a zero balance. Value in this field is in Base Currency 1. Difference Base 2: Same as above, value in this field is in Base Currency 2. Total: These two fields show the sum of the Debits and Credits of the Transaction in Base Currency 1 Total (second row): same as above, in Base Currency 2. Matrix The Transaction row matrix is divided into seven vertical flips. When you click a flip tab (marked A-G) the two or three right hand columns of the grid are replaced. Enterprise by HansaWorld Accounting Basic page 10/76

12 Flip A Account: Listing the accounts the postings will be done to. If a manual transaction is created, you can paste special in this field to the list of pre-defined accounts. You can also enter the code of the Auto transaction to this field. Objects: Objects listed on the sub system record will be pulled through to the transaction, alternatively you can paste special to select an object from the pre-defined list. Description: Is auto filled with the description associated with the account selected. Additional Description: This field is used to enter a second description on the account line. The additional description can be seen in the transaction journal and transaction summary report. Base 1 Debit: Value in Base Currency 1 posted to the account on the debit side. Base 1 Credit: Value in Base Currency 1 posted to the account on the credit side. T-Cd: In this field you can use Paste Special to the Tax Codes setting. You can mark each row in a Transaction with a Tax Code. The code may be entered automatically with the Account number or manually. Flips B D Multi-Currency Accounting: If you are using a Dual-Base Currency system, values in Base should be entered on flip B. The Dual-Base will be useful for companies operating in countries where there is a second Currency in use, in addition to the National one. If the Transaction is one which uses a simple conversion from a foreign to the home currency, the foreign currency together with values in that currency should be entered on flip C. All Exchange Rates are entered on Flip D. In case of Transactions solely in home currency, flip B D can be ignored. Base 2 Debit: Value in Base Currency 2 posted to the account on the debit side. Base 2 Credit: Value in Base Currency 2 posted to the account on the credit side. Currency: Paste special from the Currency setting or enter manually. Only necessary if the posting is in foreign currency. Currency Debit: Value in foreign currency on debit side. Currency Credit: Value in foreign currency on credit side. Base Rate 1: Exchange Rate between Base Currency 1 and Base Currency 2, value for BC1. If the Exchange Rate for the transaction date exists in the system, it will be copied here. Base Rate 2: Exchange Rate between Base Currency 1 and Base Currency 2, value for BC2. If the Exchange Rate for the transaction date exists in the system, it will be copied here. From Rate: Exchange Rate between foreign currency and Base Currency 1, value for foreign currency. If the Exchange Rate for the transaction date exists in the system, it will be copied here. To Rate B.1: Exchange Rate between foreign currency and Base Currency 1, value for BC1. If the Exchange Rate for the transaction date exists in the system, it will be copied here. To Rate B.2: Exchange Rate between foreign currency and Base Currency 2, value for BC2. If the Exchange Rate for the transaction date exists in the system, it will be copied here. Flip E Flip E can be used to pay off Invoices and Payables. On one row of the transaction, specify the Bank Account to be debited (in case of Accounts Receivable) or credited (in case of Accounts Payable). In the row posting to the Debtor or Creditor, set the T (Type) to C for customer or S for Vendor specify the invoice(s) being paid. T: Type of the posting: Any - any posting M - "Manual" C - "Customer" - posting as receivable S - "Supplier/Vendor" - posting as payable I - "Inventory" Ser. No.: Only for "C" and "S" types, paste special to Invoices or Payables. Due Date: Only for "C" and "S" types, Due Date of the mentioned document. Company: Only for "C" and "S" types, paste special to Customers or Vendors. Ser. No.: Only for "C" and "S" types, paste special to Invoices or Payables. Enterprise by HansaWorld Accounting Basic page 11/76

13 Flip F Corr: Useful if "Check Corresponding A/C Rules" checkbox is active in Transaction Settings. For complex multiline transactions it may be difficult to correspond each posting to another, and this column was designed to make it easier. Enter a number in this column and the same number in a corresponding row/s. And do the same for all the rows to follow the corresponding accounts rule. Flip G Tax Account: Paste special Tax Account. Quantity: When you create the transaction manually, the quantity can be entered here. Typically concerns Accounts Receivable and Job Costing. Type: Change this data if the transaction is not a normal posting. The following options are available: N - Normal R - Corrections J - Adjustments A - Year End 1 - Year End Stage Year End Stage 2 Automatic Balance Function If you have entered the debit amounts in Base 1 Debit column you can easily balance the transaction. With the cursor in the Base 1 Credit column, press the Return or Enter key. This option is also available from the Operations Menu, Balance Transaction. Correcting Transactions In Enterprise you can easily correct transactions in a legal manner. You may not alter an entry in your Ledger just any way you want to. A correction of a Transaction means that you create a new Transaction, which also cancels the old one. First option Highlight the Transaction containing the error in the Transaction: Browse window and click [Duplicate]. This creates a copy of the faulty Transaction. Select Swap Debit & Credit from the Operations menu. This function will exchange the debit and credit sides of the transaction. This action thus cancels out the original erroneous transaction. Select Correction Mark from the same Operations Menu. This contains a cross reference to the Transaction containing the error. Remember to include the prefix of the financial year. Second option Enterprise provides you with another method to correct entries. In manual Ledgers, errors are often corrected or eliminated by striking a line through the entry. A note is made with the initials of the accountant, and a correction entry is made. To use this method in Enterprise, double-click on the incorrect Transaction to open it. From the Operations menu select Update Mark. A line is added with the initials of the person performing the function. Highlight the row that you want to correct and press Backspace to draw a line through it. Add the correct information and Save. Enterprise by HansaWorld Accounting Basic page 12/76

14 Other Operations Menu Functions Calculate Field: Used to calculate the value when foreign currencies and currency rates are used in the transaction. Place cursor in the field and choose this option. Change Sign: Changes sign of all the postings. Open Subsystem Record: Brings up a subsystem record, if it exists. Concerns transactions created from the subsystem records like Invoices, Payables, Inventory documents, etc. Update Currency Rates: This function brings to the transaction the latest currency and exchange rates, and calculates the amounts accordingly. Simulations Enterprise offers the possibility of entering simulated Transactions in the General Ledger. These Transactions are similar to normal Transactions, with the difference that they may be removed or altered. Most reports in the General Ledger allow you to specify that they should include or exclude simulation Transactions. This allows you to try different alternatives in the business e.g. to test the outcome of different depreciation calculations on the rest of the company. Simulation transactions are not actually posted to the General Ledger. All simulated Transactions are stored in the Simulations register. Simulations can be converted into real Transactions using the Create G/L Transaction function on the Operations menu of the Simulation: Browse window. The Transaction dates of the new G/L Transaction will be the same as the dates in the rows of the Simulations from which they were created. If there are Simulation rows with different dates, a separate Transaction will be created for each Simulation. If there are rows without dates, the date will be taken from the header of the Simulation record. Enterprise by HansaWorld Accounting Basic page 13/76

15 The status on Flip B can be used to Exclude Simulation rows from the resulting Transaction. This field can hold one of five values, and is selected by using Paste Special function. Active: The row will be included in a new Transaction when created from the Simulation. The status is shown in General Ledger reports when the option to include the Simulations is used. Transferred: A Transaction including the Simulation row has already been created. The row will not be included in another Transaction if one is created from the Simulation. If you want to include it in another Transaction, change the Status back to Active, pay attention that a Balancing Transaction will result from the remaining rows. Invalid: If the Simulation is obsolete, change the Status of its rows to Invalid. No Transactions will be created from such rows. If not all the Simulation rows are marked as Invalid, pay attention that a Balancing Transaction will result from the remaining rows. Year End Stage 1, Year End Stage 2: These are very similar to Active, with the exception that Simulation rows of each Status can explicitly be included or excluded in the Analytical Balance and General Ledger report. They are included in all other reports when the option to include Simulations is used. Enterprise by HansaWorld Accounting Basic page 14/76

16 Account Reconciliation This register will most commonly be used for Bank Reconciliations; checking bank statements against the bank account Transactions recorded in Enterprise. To carry out this task, follow these steps: " Click on the Account Reconciliation in the Master Control panel. " Enter a Period from a list of Reporting Periods (Paste special) " Enter the Account number representing your bank account. If necessary, specify an Object as well. " Click the Unreconciled checkbox. All unreconciled Transactions for the specified Period will be listed. The figure in the Confirmed Reconciled Balance field shows the balance previously reconciled and should be equal to the opening balance on the bank statement. " Compare the list of Transactions with the bank statement. Where a Transaction is correctly shown on the statement, enter an R to the Rec. field. The Transaction value will be added to the Currently Reconciled total and the New Reconciled Balance figure; which represents the closing balance for the account. " If a Transaction appears in the bank statement but not in the list, it should be added to the Transactions register. Examples of this would be standing order / debit orders or bank charges. " You can enter the Transaction by selecting Create G/L Transaction from the Operations menu and creating the G/L Transactions as normal. Once saved and closed you will need to select Refresh from the Operations menu to have the newly created G/L Transaction added to the list of unreconciled Transactions. " You can assign an arbitrary code to the Transactions reconciled on a particular day, so that you can identify them later. Enter the code in the Recon. Code field in the header, before checking the Unreconciled box. " Use the Recon. Date field on the matrix row's if you would like to add the date on which transactions were reconciled. If this field is left blank the reports will assume the transactions were reconciled on the transaction date. " Once all the Transactions on the bank statement have been checked, its closing balance should be the same as the figure in the New Reconciled Balance field. " To save the Transactions which are now reconciled, you need to select Confirm Reconciliation from the Operations menu. Closing the Account Reconciliation window without selecting Confirm Reconciliation will lose all changes made. Budget The Budget register allows you to enter a budget for the company Account for Account, Object for Object. Enterprise by HansaWorld Accounting Basic page 15/76

17 Enterprise provides various budgeting models, which can be combined in different ways. For example: " absolute amounts, budgets with values for each month " annual basis with key values a budget showing how the annual values are distributed over months It is possible to change the budgeted value during the current accounting year. This may be tempting, if the actual balance differs very much from those budgeted. It is, however, advisable to leave the budget unchanged, to enable a realistic evaluation of the quality of the budgeting process. Budgeting is a way of projecting the future income and costs. If it is necessary to make changes to budgets during the current year, then changes should be made in the Revised Budgets Register. To enter a Budget register select Budgets from the Master Control panel. The Budget Accounts window is now open, showing all Accounts for which Budgets have already been entered. A separate Budget should be created for each account and the budget totals can be viewed from the Budget Accounts: Browse window. Click [New] in the Button Bar or choose an existing Budget for a selected Account and [Duplicate] Account: Enter the Account Code or you can use Paste Special. The comment field will be entered automatically when you enter the Account Code. Object: You can specify an Object here to assist with reporting. Period: In these fields enter the first and the last day for your Budget Period. Base Value: The expected total for the Budget Period. Remember to enter Sales and Income values, Liabilities and Equity as negatives (credits) and Assets and Costs as positives (debits). The figure entered here can be treated as a control total for the Period. If the Period is a year, for example, the figure can be broken down into monthly or Enterprise by HansaWorld Accounting Basic page 16/76

18 quarterly totals in the grid area. These can be entered manually, working to the Base Value as a target, or they can be calculated from the Base Value using a Budget Key; specified in the next field. Budget Key: In this field you can use Paste Special to access the Budget Key settings in the General Ledger. This is a useful tool for breaking down an annual Budget figure into monthly amounts. To apply a Budget Key to a Budget record it is first necessary to enter a figure to the Base Value field. This figure should represent the Budget for the whole Period. Then, specify an appropriate Budget Key and enter the Start Dates of each month or quarter on separate rows of the grid area in the Date column. Select Recalculate from the Operations menu. Each row will be calculated by apportioning the Base Value according to the ratios in the Budget Key. Then Save. Column Date in the grid area: enter the start date for each of the Budget Periods you want to enter. Any number of Periods can be used, but if you are using a Budget Key, you should have the same number as you have entered for the Budget Key. If the Budget and the Budget Key have different number periods, the Base Value and Budget Sum figures will not match. Column Values: Enter absolute values for each Period. If not, Budget Key is specified and these values will be moved to the right-hand column as soon as you select Recalculate from the Operations menu. If a Budget Key and Base value have been specified, these Values will be treated as extra amounts to be added to the calculated figures in the right-hand column when the Recalculate function is used. Column Budget: Enterprise will calculate this value for you when you select the Recalculate command from the Operations menu. Budget Sum: This field shows the total Budget for the year. Unlike the figure entered in the Base Value field, this figure is calculated by Enterprise as a sum of the Budget figures in the grid. Therefore, if the Budget is revised and recalculated using the Recalculate function, the Base Value will remain unchanged, so some comparison can be made between the original budgeted figure and the final one. The Budget Sum will also take into account any amounts added in the Value column. Printing Budget Definitions Follow these steps: 1. Select Reports from the Master Control Panel. 2. Double-click Budget Journal from the list. 3. In the following window, enter the required report period and press [Run]. 4. A list of Budgets is printed. If you chose the Detailed option, the list will include all monthly or quarterly totals. Enterprise by HansaWorld Accounting Basic page 17/76

19 After entering all the Budgets in the register, you can draw comparative figures with General Ledger reports (Balance Sheet, Profit & Loss) by selecting the Budget radio button in the Report Specify window. Revised Budgets The Revised Budget register should be used to enter new budgets if the initial budgets are no longer valid. The budgets in the Budget register should never be changed to reflect changes, instead the revised budget register should be used. To enter a Revised Budget register select Revised Budgets from the Master Control panel. The Revised Budget Accounts window is now open, showing all Accounts for which Budgets have already been entered. A separate Revised Budget should be created for each account. Enterprise by HansaWorld Accounting Basic page 18/76

20 Certain reports in the General Ledger, for example the Balance Sheet report, can be specified to compare the figures with the figures entered in the budget register, or the revised budget register. Brought Fwd. Balances The opening balances can be entered in Enterprise in two ways: as a G/L Transaction manual entry or as a record in Brought Fwd. Balances register. Either way should include all open balances for all accounts. The advantages of using Brought Fwd. Balance register are such that the record can be saved at any point and edited afterwards (not possible in case of G/L Transaction) and it does not require the sides to balance. The disadvantage is that the Accounts Reconciliation register does not recognize balances entered here, so this functionality can not be used in each situation. The Brought Fwd. Register is similar to Transactions or Simulations registers and should be filled in in a similar way. If you are using Objects, you should enter separate Brought Fwd. Balances records for each Object and one record for the total figure. If you manage two base currencies, you need to enter values for both of them (tabs A and B). If the specific account is managed in a different currency, then you need to fill in the tab C as well. Enterprise by HansaWorld Accounting Basic page 19/76

21 SETTINGS Go to the General Ledger module and open the Settings. Account Short Codes Account Short Codes can help reduce errors when selecting Accounts and Objects on Payables and Expenses. You can also use them if you do not want members of staff, using Payables & Expenses, to have any access to the Account and Object registers. Auto-transactions Auto transactions are templates that can be created for entering recurring transactions. These can be used to simplify the entering of General Ledger, Accounts Receivable and Payable Transactions. If the Auto-transaction is used in G/L Transaction, it may replace the account already used in the Transaction above the Auto-transaction row or will be pasted to the same row and the rows below it. Code: This is the code that identifies this particular template. The code can consist of up to six alphanumeric characters. Each template must have a unique code, and the codes can not duplicate Account numbers. Name: Assign a descriptive name to the template, e.g. "Sales Tax included". The name is then shown in the 'Autotransactions: Browse' window. A/C: This is the column where the following can be entered, with the consequences as described. : Account numbers for the template - this account will be copied to the Transaction row. You can link an Autotransaction with a particular Account number. Enter the code of the Auto-transaction in the Auto. Trans. field of the Account record (in the System module). When the Account number is entered in a Transaction record, the Autotransaction will be entered on the following rows automatically. Hash (#) - the Account number and its Description used in the preceding row of the Transaction will be copied and pasted instead of "hash" row. Exclamation mark (!) - the preceding line of the Transaction will be overwritten by the result of the Auto-transaction Account will not be changed. Object: Here you indicate which Objects are involved in the Transactions. You can also enter a (#) sign to copy Objects from the preceding line of the Transaction. Description: Text that describes each Transaction is entered in this field. You can also enter a (#) sign to copy text from the preceding line of the Transaction. Enterprise by HansaWorld Accounting Basic page 20/76

22 Debit, Credit: In this field you can use the following: A fixed amount (e.g. a salary or a rent, e.g. 5000) - the Auto-transaction will then always use this amount. A percentage as a number followed by a % sign (e.g. 30%) - the Auto-transaction will then apply the specified percentage to the amount entered. A number followed by two % signs (e.g. 30%%) - the result of the percentage calculation will be rounded to the nearest whole number. A Calculation Formula - from the setting in General Ledger. You can define a more complex formula using the Calculation Formulae setting and then enter the Code of that formula here. The Auto-transaction will then apply the specified formula to the amount entered on the Transaction. Choose the Calculation Formulae's codes carefully - they should not start from a digit, otherwise the system will recognize them as amounts and will not use the formula. If the amount or formula is entered in the Debit field, the calculated amount will be entered in the same column as the original amount. If it is entered in the Credit field, the calculated amount will be entered in the opposite column. However, if a Calculation Formula is used, its result will be entered on the same side on which the formula is entered (if used in the Debit field, its result will always be entered on a Debit side). You can balance all the preceding lines of the Transaction by entering an equal sign (=) in the Debit or Credit field. T-Cd: In this field you can use Paste Special to the Sales Tax Codes setting, General Ledger. Enter any Sales Tax Code to be entered to the Transaction row. This can be used to control the definition of reports. Number Series In the number series setting you will specify what range of numbers you would like to use for a Fiscal Year. This setting is normally completed for a few years in advance. Object type controlling This setting controls when the system will force the user to enter an object of a certain type if it is not listed on the transaction. Enterprise by HansaWorld Accounting Basic page 21/76

23 In the type field 'paste special' to select an object type which you would like to add on the accounts within the range to receive accurate reporting. In the accounts field enter a range of accounts as listed above. Object Types Each object should be connected to an object type. When entering objects on transactions, there are no limitations of how many objects can be added although there can only be one object added from each type. Presentation of Balances Presentation of balances will change the way figures are displayed on your G/L reports. For example if you would like to see a positive result in your balance sheet as a positive figure it can be regulated using this setting. Reconciliation Descriptions These descriptions can be used when doing an account reconciliation. If a reconciliation account is entered it can be used to find reconciled transactions at a later stage. In the code field enter a unique identifier to be entered in on the account reconciliation description field. In the comment field enter a description relating to the code you have entered above. Sub Systems You can specify a date as well as which sub system records should create a General Ledger transaction in the back ground once it is ok-ed. Enterprise by HansaWorld Accounting Basic page 22/76

24 Tick the box if you would like the specified subsystem records to create a transaction in the background once ok-ed. Add a from date to indicate that all transactions on and after the specified date will create an G/L transaction. All sub system records posted before the specified date will not create transactions within your G/L transaction when ok-ed. Sub-ledger Control Accounts In order for the Debtors/Creditors ledgers to balance to the Account Receivable or Account Payable in the General Ledger, you have to set up these Sub-ledger Control Accounts. This will prevent you from entering debtors or creditors transactions straight into the General Ledger. Transaction Settings This setting contains some miscellaneous options controlling the behavior of various aspects of the Transaction screen. Enterprise by HansaWorld Accounting Basic page 23/76

25 Warn on Unusual Amount: When defining Accounts using the Account register, it should be specified whether each Account will normally be used on the credit or debit side or both. In the case of Accounts which are normally used on one side only, a warning may appear if an attempt is made to enter it on the wrong side. Warn On Overwrite of Auto-transaction: Check this box if you want Enterprise to issue a warning when you try to alter anything during use of Auto-transactions Use Preliminary Transactions: This option allows General Ledger transactions to remain fully editable, even after they have been saved. If this feature is being used, its scope can be restricted using the 'Not Preliminary Transaction' field in the Locking setting in the System module. Check Corresponding A/C Rules: If you check this option, then for each manual entry where the corresponding rules are not clear, the system will require to add them in flip F column Corr. Group the lines according to correspondence to show how each row is balanced and put a number to mark the lines checked. Calculate Rate Differences: If this option is active, you will have a new row on the transaction to indicate the foreign currency exchange rate loss or gain. Account Description in Company Language: This option can be useful in multi-companies installations with many different languages and if the reporting should always be in one specific language. For that feature to work check this checkbox and also create a language description for each Account, additionally it is necessary to define this language in the Company Info setting. With all these set up it is not necessary to enter a language on the specification window of main General Ledger reports, the language will be selected automatically. Negative Amounts: Check this option if you want to allow Enterprise reversing the General Ledger transaction by putting the same values on the same sides but with minus. If this option is blank, reversing can only be done by putting the values with plus on the opposite sides of the transaction. Allow Trans. Date Changing: This option allows to have different dates on the subsystem record and the connected G/L transaction (by changing the G/L date). This is only allowed in some countries. Add Tax Code to Tax A/C Rows: If this option is active, the Tax code will not only be added on the Sales or Cost Accounts row postings but also on the Tax Account rows postings. Warn on non-sequenced Transaction Number: If this option is active, the system will warn you each time the transaction number is not one greater than the previous one. You will still be able to save the transaction. Use Tax Templates for Tax Calculation: Check this option if you want a Tax Templates field to appear instead of Tax Codes. This option is useful if the Tax Templates are used throughout the system instead of Tax Codes and should always be checked in this situation. Skip Object Type Control for Year End Records: If this option is active, the system will not force entering objects for postings of the Year End type (flip G, column Type of G/L transaction). Tax Codes In order to comply with Sales Tax regulations it is necessary to differentiate between domestic and external trade. To solve this scenario, Enterprise makes use of Tax Codes, whereby any number of Tax Codes with different accounting specifications can be defined. Enterprise by HansaWorld Accounting Basic page 24/76

26 You need to specify a Code, the Excl.%, the Output Account that you want Enterprise to post the Output Tax to, the Input Account that you want Enterprise to post the Input Tax to and a short Description. Tax Template Code Control This setting can be use to control Sales Tax posting and to make sure the listed accounts have the correct Sales Tax code. By default the Tax Codes will be used here. If you use option Use Tax Templates for Tax Calculation in Transaction Settings, this setting will use the Tax Templates. Paste special in the Tax Template Code field to select a Tax Code or a Tax Template Code from the pre-defined Tax Codes/Tax Templates setup. In the accounts field specify the range of accounts for which the selected Tax Code/Tax Template needs to be used. If a transaction attempts to post to the listed account without the correct Tax code the system will give an error message. Enterprise by HansaWorld Accounting Basic page 25/76

27 DUAL & MULTI CURRENCY Enterprise is a dual currency ERP solution. Processing of transactions as well as viewing of financial information can be done in multiple currencies. Base Currency Enterprise allows the user to set up a Currency in the System module. The Base Currency is usually the legal currency in your country. To set up the Base Currency: Go to the Module System and open the Setting Base Currency. Base Currency 1: The currency specified in this section is the currency that you will normally trade in; your country s national currency. Base Currency 2: If you would like to view your financial information in a different currency than specified in Base Currency 1, then you will specify it here. Default Base Currency: This field is for the default currency that is to be used when you enter a transaction. It is usually the same as Base Currency 1. Base Currency Rates The exchange rates for the Base Currency must be entered in the System module. To enter the Base Currency Rates: Go to the System Module and open the Setting Base Currency Rates Date: Enter the date of currency rate Base Currency 1: Enter the rate for the Base Currency 1 Base Currency 2: Enter the rate for the Base Currency 2 Exchange Rates Exchange Rates allow the user to enter rates for a third currency in your database. This means that the user can enter transactions in currencies which are different to the rates specified in Base Currency 1 and Base Currency 2. These rates are entered in the Exchange Rates register in the System module. To enter the Exchange Rates: Exchange rates are used in the sub systems for processing invoices and payables in different currencies whereas base currency rates are use in the General Ledger for reporting in a second currency. Go to the System module and open the Exchange Rates register. Enterprise by HansaWorld Accounting Basic page 26/76

28 Enter the currency code [ +Enter] Example GBP Enter the date of currency rate In the Rate field, enter the numerical number - 1 In the Base Currency 1 field, enter the Exchange Rate for Base Currency 1 In the Base Currency 2 field, the Exchange Rate for Base Currency 2 Save Enterprise by HansaWorld Accounting Basic page 27/76

29 KEY FINANCIAL RATIOS Defining 1. To change the report definition of the Key Financial Ratios report in the General Ledger module, first select 'Settings' from the Master Control and double-click 'Report Settings' in the subsequent list. Then highlight 'Key Financial Ratios' in the list on the left-hand side of the 'Report Settings' window and click the [Definition] button. The 'Key Financial Ratios Report Definition: Inspect' window is opened. 2. Enter the definitions for your Key Ratios. The following illustration shows a sample list of defined Ratios. Below all the possible commands are described. The fields on the screen are as follows: (Row): Each Ratio is defined on its own numbered row in this window. Code: A unique code identifying each Key Ratio: this can be used to refer to the Key Ratio when calculating others (see the illustration). Comment: The name of the Ratio, to be shown on the report. Definition: The formula used to calculate the value of this Key Ratio. Hide Yes/No: If this line is just a subtotal and is not needed to be seen in report, mark this line as Hide - yes. Several commands are available for use by formulae in the Definition field. They are not case sensitive. Result( Account Code ) This command returns the net change during the period for the Account specified in the brackets. Some examples of the use of this command are as follows: Result( 100 ) Returns the net change in Account 100 for the specified period. Result( 100:1999 ) Returns the sum of the net changes in Accounts 100 to 1999 for the specified period. The Accounts used are determined using an alpha sort, rather than a numeric one. Thus Account will be included in the example range, while Account 200 will not. -Result( 100:1999 ) As per the previous example, but the sign of the final figure is changed. This is useful when displaying figures for sales, which are stored as negative figures in Enterprise. Prefixing the RESULT command with a minus sign will cause sales to be displayed as positive figures in the report. Result( :1999 ) Takes the net change in Account 100 and adds it to the sum of the net changes in Accounts 120 to Enterprise by HansaWorld Accounting Basic page 28/76

30 ObjResult("Account Code","Object Code") The same as Result but with possibility to filter by object code. Balance( Account Code ) This command returns the closing balance for the Account specified. It therefore differs from the RESULT command in that balances brought forward from previous periods are taken into account. The command can return the sum of the balances of specified Accounts in the same manner as the RESULT command: please refer to the description of the RESULT command above for examples. Key( Code ) The value of another Key Ratio can be included in the calculation. The Key Ratio referred to must already have been defined. If not, a zero value is used. Therefore, in the example illustration, the GROSS PROFIT line must appear below the SALES and COST OF SALES lines. VATResult( Account Code, Tax Code ) This command is similar to RESULT, but in calculating the net change during the period for the Account specified, only postings with the specified Tax Code are taken into account. The reference to the Tax Code is not case sensitive. The command can return the sum of the balances of specified Accounts in the same manner as the RESULT command: please refer to the description of the RESULT command above for examples. VATBalance( Account Code, Tax Code ) This command returns the closing balance for the Account specified, with Transactions with the specified Tax Code taken into account. It therefore differs from the VATRESULT command in that balances brought forward from previous periods are taken into account. VATCredResult( Account Code, Tax Code ) This command returns the total credit posting to the Account specified during the period, taking only transactions with the specified Tax Code into account. VATDebResult( Account Code, Tax Code ) This command returns the total debit posting to the Account specified during the period, taking only transactions with the specified Tax Code into account. APDue( Number of days ) This command returns the total in the Accounts Payable that is overdue for payment by the specified number of days. The last day of the report period is used as the due date. For example, APDUE(20) will return the total that became due 20 days or more before the end of the report period (i.e. that was overdue by at least 20 days on the last day of the period). A number must be specified: use APDUE(0) if the total is to include all overdue Payables. ARDue( Number of days ) This command is the Accounts Receivable equivalent of APDUE above. 3. When you have finished defining Key Ratios, click [Save]. You are returned to the 'Reports' list window. The illustration of the Key Ratio definitions shows examples of the various methods of calculating a Key Ratio. There are a few things to remember. As the calculation uses Enterprise's internal values, balances on e.g. Sales Accounts will be shown as negatives, since they normally are in credit. You solve this simply by reversing the sign for all such calculations - put "minus" in front of the command. The value of a well-structured Chart of Accounts is easily noticed here. If all income related Accounts are found in a consecutive series, summing them all up becomes simple. Assisted Formula Entry There is a possibility to use the assisted formula entry window since version 6.0. When in Definition field in the report definition window, press Ctrl+Enter on Windows and Cmd+Enter on Mac. The assisted entry window will be opened (displayed below). Enterprise by HansaWorld Accounting Basic page 29/76

31 Using options available in this window you can enter any kind of formula that is available in manual mode. General Ledger, Accounts Payable, Accounts Receivable: Choose the type of formula you want to use. Descriptions of these options correspond to a formula described above. Accounts: Enter an account or group of accounts if the formula type is from group General Ledger Object: Enter the object code if the formula type is from group General Ledger Tax Code: Enter the Tax code if the formula type is from group General Ledger Days: Enter the number of days (aged periods) for calculating KFRs from group Accounts Payable or Accounts Receivable Row Code: Enter the row code if using type Row Total Amount Debit/Credit/Both: Used for General Ledger data, allows credit, debit or balance data for an account. Skip Open Invoices On Hold: Tick this option if using Accounts Payable type of formula and filtering of On hold Payables is needed. Skip Open Invoices No reminders and disputed, no reminders only, disputed only: Use this option if using Accounts Receivable type of formula and any kind of due invoices filtering is needed. Formula: Use this field to double check the selected formula and make manual adjustments if needed. Press [Replace] or [Add] to finish editing this formula and include it in report definition. Columns The Key Financial Ratios report has only three columns by default code, description and result. But it is possible to expand this functionality. By adding columns you can create a report showing detailed results by months, quarters, budgets etc in a single report, thus creating a powerful tool to generate management planning and budgeting reports. To define columns press Define Columns on the report definition window. An empty Column Definition window will be opened.fill in this table to enable columns functionality. Enterprise by HansaWorld Accounting Basic page 30/76

32 Flip A Code: Define code of column. This can be used later for referral in other columns. Comment: Description of column, will be printed as column headers in report. Type: Use this field to define the type of column. The Type determines what will be printed in the specific column. Types can be any of the following: Code: Code of report definition row (can be 1 to 10 from above example) Comment: Text from field Comment from report definition will be printed ( Turnover (result) from row 1 from above example) Actuals: Result from selected formula. By default returns the same value as using standard functionality without columns. Columns Sumup: Sum of columns Budget: Display values of selected accounts/periods entered in register Budget Revised Budget: Display values of selected accounts/periods entered in register Revised Budget Purchase Order Commitments Goods Receipt Accruals Flip B Objects: Enter object code to view filtered General Ledger data. This field can be very useful If one account needs to be displayed divided among different departments, persons, item groups etc. Flip C Flip C lets you specify the period of each column. Even though the report is run for the whole year, each column can display data for any period within the reporting period or even outside the reporting period. Tile C is displayed below. Period: Select the type of period this column should show. Possible choices are: Selected period - period specified in report specification window Month Year Fiscal Year to Date Fiscal Year Offset: By default the selected period will be from the start date specified in the report specification window. Field Offset allows you to offset the period by any value backwards or forwards. From the illustration above the Period is specified as Month, Offset as 0, 3, 6 or 9. This allows each column to show results for periods starting with the report start date, plus 3 months, etc. Length: Length of period specifies the number of elements (specified in field Period ) as the length of period. From the illustration above, line 3, 4, 5 and 6 each contain a different period of three months e.g. quarters. Position: By default in the report window, columns are evenly distributed. It is possible to specify the position of each column in values from 0 to 480. Value 1 means the right side of window. Hide: Select Hide yes if a specific column is not to be displayed in report window. Enterprise by HansaWorld Accounting Basic page 31/76

33 Key Financial Ratios - Printing Open the 'Reports' list window and double-click 'Key Financial Ratios'. The 'Specify Key Financial Ratios' window is opened. Period: Enter the report period, in the format " : ". If you are using four-digit years as in the illustration, the leading digits will be inserted automatically. If your report period is a single day, just enter the date once and this will be converted to a period format automatically. The first row of the Reporting Periods setting is the default value. Object: Enter the Object (if any) for which you want to calculate Key Ratios. Keys: If you do not want to show all Key Ratios in the report, specify here which ones are to be included. If specifying more than one, they should be separated by commas (e.g. "SALES"). Header: Specify a title for the report here. Display Values in: Specify the Currency that is to be used in the report. Leave the field empty to use the home Currency (Base Currency 1). Including Simulations: Check this box if you want to include simulated transactions in your report. Simulation rows of "Invalid" and "Transferred" Status will not be included. No Header: Check this box if you want the report to be printed without a header. Enterprise by HansaWorld Accounting Basic page 32/76

34 ACCOUNTS RECEIVABLE The purpose of every business is selling a product or service in exchange for money. The process of keeping track of this exchange is done in this module. Settings Account Usage A/R The Account Usage A/R setting is used to specify the default Accounts & Tax Codes for use in your Accounts Receivable. The defaults will be used in the absence of Accounts or Tax Codes being specified elsewhere. If you have imported the sample Chart of Accounts supplied with Enterprise, you will find that most of the fields in the account usage A/R setting contain suggested values. If you have modified this Chart of Accounts, or have used your own, you will need to ensure that these values are replaced with the correct accounts. Account Usage A/R Debtors Tab ACCOUNT FIELDS Debtors: This Account shows how much your company is owed at a particular time. Bad Debtors: The Transfer to Bad Debtors Maintenance function can be used to transfer the outstanding balances of overdue Invoices from the Debtor Account specified above to a Bad Debtor Account. You will need to enter the Account that you want to use for Bad Debtors here. Cash: This account will be debited instead of the Debtor Account whenever a cash sale is OK-ed. The Account specified will be overridden if a separate such Account has been specified for the Pay Term. POS Change: Use this account if you want to book change in Point of Sales to a different account than Cash. On Account A/C: When an account Payment has been received from a customer and cannot be offset against a specific Invoice, it will be booked against this Account (Prepayment from Customer) Round Off: The total amount of the Invoice will be rounded up or down according to the rules defined for its Currency. When the Invoice has been OKed, the amount lost or gained by this rounding process is posted to the Account specified here. A special setting in the System module, Round Off, is used to set the rounding rules where no Currency has been specified. Commission: This field is used in Russia. Please refer to your local representative for details. Invoice Discount: This is to be booked to a pre-set Discount Account in the Chart of Accounts. CHECKBOXES Objects on Debtors A/C: When approving Invoices, any Objects specified on the Terms card will be assigned to the credit posting to the Sales Account when a G/L Transaction is generated. If this check box is checked, they will be assigned to the debit posting as well. Sub-ledger Checking: Check this box if you want to use the Sub-ledger checking feature in the Accounts Receivable. Enterprise by HansaWorld Accounting Basic page 33/76

35 This will mean that it will only be possible to post to a specified Account (Debtors Accounts) from the Sub-Ledger (Invoices/Receipts). It will prevent you from accidentally and incorrectly posting Transactions in General Ledger Transactions (excluding receipts). Invoice Update Inventory: This check box has 2 purposes. First, it indicates how an Invoice will update Inventory Levels. If this option is used, Enterprise will reduce the Inventory Level of each Inventory Item in an Invoice by the appropriate quantity when it is OKed. The second purpose is to include Cost Accounting postings in the G/L Transaction generated when the Invoice is OKed. Otherwise, Inventory Levels are reduced when Deliveries are made from the Sales Order Screen. Invoice Info on G/L Transaction: When G/L Transactions are generated automatically from the Invoices & Receipts, this option will ensure that the Invoice/Receipt No, Payment Date and customer is displayed on the G/L Transaction. Update Base Currency when Invoicing: This will update the Base Currency you have set up for the customer to the new Currency being used when invoicing to the customer. Do not allow Credit Invoices without No.: Check this box if you would like Credit Memos always to be allocated to previous invoices. Use Prepayments, not On Account: If you receive Payments from a particular Customer without reference to a specific Invoice, these can be entered to the Receipt register with a Prepayment Number. When the time comes to raise an Invoice, it can be allocated to Receipts of both kinds, but the process is easier if there is a Prepayment Number. If you want to prevent a user from entering On Account Receipts, check this box. Force Unique Prepayment Numbers: Check this box if you would like to ensure that unique Prepayment Numbers are always used when entering Prepayment Receipts. Separate Row per Receipt Row on Bank A/C: When you enter a Receipt with several rows the resulting G/L Transaction will usually contain a single debit posting to the Bank Account. Check this box if you would like such Transactions to contain separate debit postings for each Receipt row. The Description in each debit posting will show the Invoice Number and Customer Name. Tax / Tax Tab ACCOUNT FIELDS Tax (A/C): This Account should be used in those countries where sales are booked inclusive of Tax. In this case, whenever an Invoice is posted to the G/L the amount credited to the Sales Account will include Tax. As a result you must specify a Tax (A/C) Account here. Tax on Sales Account: Specify your Tax Output Payable Account here. CHECKBOXES Ext. Tax: Select one of the following 3 options to specify how TAX & Tax will be calculated: 1. Calculate Ext. TAX on Sum incl. Tax 2. Calculate Ext. TAX on Sum excl. Tax 3. Calculate Ext. TAX on Sum excl. Tax and calculate Tax on TAX Enterprise by HansaWorld Accounting Basic page 34/76

36 Base Price: Choose one of the following 3 settings to specify how your Base Price will be setup: 4. Not including Tax 5. Including Tax & Ext. TAX 6. Including Tax Tax Code Control: This option Controls the Choice of Tax Codes on Invoices. When an Item is entered on an Invoice, the Tax code is taken from the Customer, Item or Item Group. If you are using this option, the Tax code must match that specified in the Sales Account. Exclude Tax on Settle Discount: Use this option if the Settlement Discount Percentage is to be applied on the Invoice total excl Tax. If it is not ticked, it will apply to the Invoice total incl. Tax. This option is likely to be used in the UK only. Exchange Rate Tab ACCOUNT FIELDS Accounts on this screen are used when processing G/L Transactions from Invoices & Receipts involved with Currency Conversion. Sales Tab Enterprise by HansaWorld Accounting Basic page 35/76

37 ACCOUNT FIELDS Local Sales A/C, Domestic Sales A/C, and Export Sales A/C: When an Invoice is OKed, the values excluding Tax of the Items are individually created to a Sales Account. It can be useful to maintain more than one Sales Account to keep record of the Sales of different types of products. For this reason, you can specify a separate Sales Account for each item. Three default sales Accounts should be set. Credit Tab ACCOUNT FIELDS These accounts and Tax codes will be used when no credit Sales Account or Tax Code has been specified for an Item Group and for Items that do not belong to an Item Group. If any field here is blank, the Standard Account or Tax code from card 3 of this setting will be used instead. Payment Terms Different Invoices can be assigned different terms of Payment: last date for Payment, Cash or Credit Memos etc. Payment Terms are also used to establish a system of Settlement Discounts. The entries in this setting are also used in the Accounts Payable when you are entering Payables from Vendors. When first selecting this setting, the Payment Terms: Browse window is displayed, showing all the Payment Terms previously entered. Double-click on a Payment Term in the list to edit it, or add a new Term by clicking the [New] button in the Button Bar. Code: Enter the unique Code by which the Payment Terms record is to be identified from elsewhere in Enterprise. The Code may consist of one or two characters and both numbers and letters can be used. Net Days: The Payment Period in days. If the Type is set to Normal, when this Payment Term is used in Invoices or Payables, the value entered here will be added to the Invoice/Payable Date to calculate the Due Date. If the Type is Enterprise by HansaWorld Accounting Basic page 36/76

38 Next month the Due Date will be the next day of the next month. Settl. Discount % : If the Type is Normal, enter the rate of Discount, if any. Settl. Discount Days: In this field you enter the maximum number of days allowed for cash discount terms. If the setting is 10 days, the customer gets the assigned Discount if Payment is received within 10 days. Text: Here you enter the Name of the Payment Term as it will be shown in the Payment Terms: Browse window. Cash A/C: In this field you can use Paste Special to the Account register, General Ledger/System module if the Type is set to Cash, enter the Account to be debited or credited. If this is blank, the Cash Account on card 1 of the Account Usage A/R or A/P setting will be debited. Cash Notes are described below in the section describing the Cash Type. Price List: Any Price List entered here will be brought into all Orders or Invoices using this Payment Term if their Price List field is otherwise blank. This is useful for users who have different prices for customers who pay by different methods. Installment: This field is used to connect the Payment Term record to an Installment plan, defined in the Installments Setting. Type: The Payment Term can belong to one of eight types and the choice of Types determine how the Due Date is calculated. Normal: A normal Payment. The value in the Net Days field shows how many days the Due Date is from the Invoice Date. Credit: This type is used for Credit Memos, to make sure that the Accounts Receivable and Payable ledger are updated correctly. You should have at least one Payment Term record of this type if you wish to raise Credit Memos. Cash: This type is used for cash Payments. The number of days is not relevant. Invoices with this Payment Term are known as Cash Notes. There is no need to enter a Receipt. Cash Notes behave in a similar fashion in the Accounts Payable. Next Month: If you choose this type it means that the value in the field Net Days stand for that specific day of the month. Since it is a fixed date instead of a certain number of days, this results in a credit Period between 15 & 45 days, depending on when the Invoice was created. Language, Text: The table in the lower part of the window can be used to enter various translations of the Payment Terms text, which will be printed on documentation of the Orders and Invoices. Specify a Language in the first column and the appropriate translations in the second column. There is no need to enter a row for your home language. If a Language has been entered for the Order or Invoice, then it will determine which Translation will be printed. If no Language is specified the text entered in the Text field will be printed. Payment Modes Payment Modes represent the different methods by which your Invoices will be paid by your Customers (and by which you will pay your Vendors). Enterprise allows each Payment Mode to debit a different Account and to be paid into different bank accounts. Payment Modes can also be differentiated by Objects. This setting is also available in the Accounts Payable. To remove Payment Mode, click on the row number on the left of the row and press the Backspace key. To add a Payment Mode, follow these steps. Enterprise by HansaWorld Accounting Basic page 37/76

39 Flip A Code: Enter a unique Code by which the Payment Mode is to be identified from elsewhere in Enterprise. Account: In this field you can use Paste Special to the Account register in the General Ledger/System module. Specify here the cash, bank or other account to be debited by any Receipt and credited by any Payment using the Payment Mode. Comment: The comment entered here should be a brief description that will appear in the Paste Special listing. Bank A/C No: Specify here the bank account number used for this Payment Mode. This Account Number can be printed on the Payment document specified on Flip B. Sort code: Enter the Sort Code (Branch number) of the bank account in this field. Bank Name: Record the Name of the bank where the account is held here. Flip B Document: This can be useful in the Accounts Payable as it allows you to have a different design of Remittance Advance for each Payment Mode. Objects: Up to 20 Objects separated by commas can be allocated to each Payment Mode. These Objects will be assigned to the posting to the bank or cash Account. Type: Enter the Payment Mode Type here. The available options are: Free, Received Check, Own Check, Credit Card, "Debit Card", "Withholding", "Cash", "Resource", "On Account", "Regional Withholding", Tax Withholding, "Bank Transfer", "Gift Voucher" Free will be used in most cases as Received Check, Own Check and Credit Card ; link the Payment Mode to the Check. Withholding Tax is used in special circumstances described below. Cash will be used if the Payment Mode is to be used in the Cash Book module. Flip C Enterprise by HansaWorld Accounting Basic page 38/76

40 From / To: These fields can be used to define separate Number Series for each Payment Mode. Receipts and Cash In records will use the Number Series in the left-hand From and To Fields, while Payments and Cash Out records will use those in the right hand fields. When entering a new Transaction, the next number in the appropriate series is used when the Payment Modes is specified. G/L: This field allows a measure of control over whether General Ledger Transactions are generated automatically when approving Payments or Receipts featuring each Payment Mode. The Paste Special selection list contains two options GenTrans and Do Not GenTrans. Select the first option if the General Ledger transaction is to be generated and the second if they are not. In effect, this feature is an exclusionary one in that you can only choose to not have General Ledger Transactions created for a particular Payment Mode. If the overall preference is to not have such Transactions created, you can not decide to have them created for a single Payment Mode. Enterprise by HansaWorld Accounting Basic page 39/76

41 CREATING INVOICES Invoices The Invoice register is a record of your company's sales. Each time a sale is made, an Invoice should be entered, printed and sent to the Customer. Records can be entered to the Invoice register using the following methods: " They can be entered directly to the Invoice register. This method is suitable for all the types of sales transactions mentioned above. " They can be created remotely from other registers, such as Orders and Service Orders. This method will probably be used for standard Invoices and Down Payment Invoices. Down Payment Invoices can also be created from Receipts. " They can be generated in batches using a Maintenance function. This method can be used to create standard Invoices from Orders and Projects and to create Interest Invoices (for interest on late payments). To open the Invoice register, ensure you are in the Accounts Receivable module, then select 'Invoices' from the Registers menu or click the [Invoices] button in the Master Control panel. The 'Invoices: Browse' window is opened, showing Invoices already entered. To enter a new Invoice, click [New] in the Button Bar or use the -N keyboard shortcut. Alternatively, highlight an Invoice similar to the one you want to enter and click [Duplicate] on the Button Bar. Since the amount of information relating to each Invoice cannot fit on a single screen, the Invoice window has been divided into several cards. At the top of each is the header. This contains the Invoice Number, the Customer Number and Name. There are named buttons ('tabs') in the header. By clicking the tabs you can navigate between cards. An Invoice will be created and it will no longer be modifiable after it has been OKed. Entering an Invoice - Header No.: When creating a new Invoice, Enterprise will automatically generate the next unused number from the number sequence allocated on the 'Serial Nos' card of the user's Person record or from the Number Series - Invoices setting. Customer: Enter the Customer Number or use the 'Paste Special' function. When you press Enter, the Customer's name, address and other information will be entered into the appropriate fields. OK : Checking this box approves the Invoice and causes it to be entered in the Accounts Receivable. A corresponding transaction will also be created in the General Ledger. Entering an Invoice - Terms Tab Invoice Date: The current date according to the computer's clock is entered as a default. Salesperson: The Salesperson responsible for the sale should be registered here: there are many reports in the Accounts Receivable which can be broken down by Salesperson. Enterprise by HansaWorld Accounting Basic page 40/76

42 Payment Terms: Payment Terms entered here will determine the Due Date (field below), to ensure that the correct Payment Terms appear on Invoices (in the Language of the Customer if necessary). Our Reference: This field relates to your reference person who was involved with the invoice. Attention: Record here the person for whose attention the Invoice is to be marked Objects: Up to 20 Objects, separated by commas, can be assigned to this Invoice and all transactions generated from it. Reference: Record a reference for the sale here if the customer provides you with one. Cust. Ord. No.: Record the Customer's Purchase Order Number here. Where an Invoice has been created from an Order, the Customer's Order Number will be brought in automatically. Trans. Date: The Transaction Date for the General Ledger Transaction. This is always the same as the Invoice Date and cannot be changed independently. Entering an Invoice - Items Tab Flip A Item: With the cursor in this field, enter the Item Number or Bar Code for each Item ordered. Pricing, description and other information will be brought in from the Item record Qty: Enter the number of units sold. Press Enter to calculate the Sum and the cursor will move to the Item field on the next row. Description: This field shows the name of the Item, brought in from the Item register. You can add an extra description of up to 100 characters of text. You can also use the next line if necessary. Unit Price: The Unit Price according to the valid Price List for this Customer is brought in. If the Customer has no Price List specified or the Item is not on the Price List in question, the Base Price from the Item screen is brought in. % (Discount percentage): If a Discount Matrix that includes this Item has been allocated to the Customer, this figure will be determined by the Item Number and Quantity. Sum: The total for the row: Quantity multiplied by Unit Price less Discount. Changing this figure will cause the Discount Percentage to be recalculated. Disputed: Check this box if the Invoice is subject to a dispute. Disputed Invoices can be in- or excluded from some reports and documents such as the Open Invoice Customer Statement and the Accounts Receivable report. Enterprise by HansaWorld Accounting Basic page 41/76

43 Flip B A/C: This code determines the General Ledger Sales Account for this Item. The General Ledger Transaction generated by this Invoice will credit the Account specified here. T-Cd: The Tax Code entered here determines the rate at which Tax will be charged on this Item and the Tax Account to be credited. Entering an Invoice - Currency Tab Rate: If the Invoice is in a foreign currency and you want to indicate the exchange rate on the Invoice, you can do it in the Rate field. Put the exchange rate of the foreign currency in relation to Base Currency 1 or 2. Entering an Invoice - Delivery Tab Delivery Terms: Specify the Delivery Terms for this Invoice here. You will tend to use this field for international Customers: examples might be Cost, Insurance, Freight or Free On Board. Delivery Mode: Enter the mode of shipping for this Invoice. Examples might be Post or Courier or the name of the courier could be specified that you will use to deliver the goods on the Invoice. Update Inventory: Use this option if you need inventory levels for the Items on the Invoice to be reduced when the Invoice is approved using the OK checkbox. This only affects Items that are Inventory Items. Location: If the inventory which will be used to satisfy this Invoice is to be taken from a particular Location, specify that Location here. Otherwise, inventory from all Locations will be available. Entering an Invoice - Identifiers Tab Language: The Language Code determines the text to be transferred from various registers and settings, for example the Item Name, text for Payment Terms and Payment Mode, the selection of document forms etc. Leave the field blank to use the base Language. Entering an Invoice - Footer In addition to the Currency, the Invoice Footer contains various running totals as described below. Whenever an Invoice row is added or changed, these totals are updated. Currency: The Currency of the Invoice: the exchange rate is shown on the 'Currency' card where it can be modified only for this particular Invoice if necessary. Subtotal: The total for the Invoice, excluding Tax. TOTAL: The total for the Invoice, including Tax. This figure is rounded up or down according to rounding rules set for the Currency (in the Currency Round Off setting in the System module). Account specified in the Account Usage A/R setting. Creating Credit Memos If you want to credit an Invoice that has been sent you should do the following: Select 'Invoices' from the Registers menu or click [Invoices] in the Master Control panel. The 'Invoices: Browse' window is opened, showing all registered Invoices. Click [New] or enter the appropriate keyboard command. Alternatively, find the Invoice to be credited in the list, highlight it and click [Duplicate]. The 'Invoice: New' window is opened as described here. Enter the Invoice in the normal way, but change the Payment Terms to "CM" (Credit Memo). In the first row of the specification area, a crediting message is entered. Enter the number of the Invoice to be credited, using 'Paste Special' if necessary to bring up a list of open (unpaid) Invoices. On the remaining lines you can enter the Items to credit and by what amount. Click the OK check box when you are sure the Credit Memo is correct. As with ordinary Invoices, Credit Memos must be approved using the OK check box to be entered into the Accounts Receivable and if so defined in the Sub System setting in the General Ledger, for General Ledger Transactions to be created. Alternatively a Credit Memo can also be created by opening the invoice inspect window, clicking on the "Operations and selecting the 'Create Credit Memo' option. Once the Credit Memo is approved and correct, click the OK tick box in order for the General Ledger transaction to be created. Credit Memos - Invalidating Invoices In some circumstances it can be appropriate to invalidate an Invoice using the 'Invalidate' command on the Record menu of the 'Invoice: Inspect' window or on the menu of the program. This function will remove the Invoice from the Accounts Enterprise by HansaWorld Accounting Basic page 42/76

44 Receivable and any associated General Ledger Transaction will be removed from the General Ledger as well. An invalidated Invoice is easily distinguished because all fields have red lines drawn through them. These red lines are also shown in the 'Invoices: Browse' window. The function is designed for use in situations where Invoice Numbers are pre-determined (perhaps through being printed on Invoice stationery) and where it is not desirable to raise a Credit Memo. It is not recommended for use where it is intended that the canceling of an Invoice should have implications for the inventory system. In these circumstances, a Credit Memo should be raised, and the goods received back into inventory through the Goods Receipt or Returned Goods registers. Creating Receipts In the Accounts Receivable module, click the [Receipts] button in the Master Control panel. The 'Receipts: Browse' window is opened, showing Receipts already entered. Receipts are numbered consecutively. In the list, the Receipt Number is followed by a check mark if the Payment is OKed, by the Date, any Reference, the total amount of the Payment and finally the Currency. To enter a new Receipt, click [New] in the Button Bar or use the -N keyboard shortcut. Alternatively, highlight a Receipt similar to the one you want to enter and click [Duplicate] on the Button Bar. The 'Receipt: New' window is opened, empty if you clicked [New] or containing a duplicate of the highlighted Receipt. The principle for entering a Receipt is that you know at least: " How much has actually been received; and " Any extra fees charged by the bank. In the case of Payments in a different Currency, in order for the Accounts Receivable to balance, the possible Rate Loss or Gain must be posted to a separate Account, not the basic Debtor Account. Exchange Rate Loss and Gain Accounts are specified on card 2 of the Account Usage A/R setting. The balancing must usually take place against the Exchange Rate: bank fees and the amount received cannot be changed. First a run-through of the fields: Trans. Date: In this field you can use Paste Special to the Current Date. The Transaction Date for the Receipt: the date when the Receipt is posted to your General Ledger. Reference: This field can be used if you need to identify the Receipt by any means other than the Receipt Number (e.g. a bank reference in the case of credit transfers or BACS Payments). The Reference is shown in the 'Receipts: Browse' window, allowing you to search for a Receipt with a particular Reference. The Receipt Journal report can also be used to list Receipts with a particular Reference. Payment Mode: In this field you can use Paste Special to the Payment Modes setting, Accounts Payable/Receivable. The Payment Mode determines the General Ledger Account to be debited by the Receipt. Comment: Default taken from Payment Mode. The text for the Payment Mode. This text may be changed. Use the grid area that takes up most of the screen to list the Invoices being paid by this Receipt. A single Receipt can be allocated to several Invoices, and/or feature Payments in different Currencies and Payment Modes. The Payment Mode reflects not only the Payment Method (i.e. check, cash or credit card) but also the Bank Account debited. OK: Receipts of most Payment Modes can be OKed by clicking this check box. On clicking [Save] to save the Receipt, the Bank Account specified for the Payment Mode will be debited and the Debtor Control Account of the Invoice Enterprise by HansaWorld Accounting Basic page 43/76

45 being paid will be credited. Once this box has been checked, no modifications to the Receipt will be possible. Flip A Invoice No.: In this field you can use Paste Special to open OKed Invoices, in the Invoice register. Select the number of the Invoice being paid. On entering an Invoice Number, the Currency, if any, of the Invoice will be brought in and if the Invoice qualifies for an Early Settlement Discount, a discount row is inserted automatically, together with a suggested discount amount. This is calculated using the formula specified for the appropriate Payment Terms record. Note that when using the Paste Special only unpaid Invoices will appear in the selection list. However, Invoices against which an unoked Receipt has been entered are treated as unpaid and thus will be listed. Sorting the 'Paste Special' selection by Customer will allow you quickly to find the Invoice that is being paid. Customer: The default for this field is taken from the Invoice or Sales Order. It is displayed when the Invoice Number is entered (or when a Prepayment Number that is also an Order Number is entered on flip D). In the case of account Customers, type in the Customer Number and use the 'Distribute Receipt' function on the Operations menu to select the Invoices being paid. Pay. Date: The date when the Payment was made. This date is always the same as the Transaction Date (in the header) and cannot be changed independently. B. Cur: In this field you can use Paste Special to the Currency register, System module. The default is taken from the Receipt Currency. The Bank Currency: enter the Currency of the amount as paid into the bank. So far as the accounting of the Bank Amount is concerned, it does not matter whether the Receipt Currency, the home Currency or the Currency of the Bank Account (specified in the Account register in the System module) is entered here, since the resulting General Ledger Transaction will contain values in all appropriate Currencies. However, it is recommended that all Payments on the same Receipt use the same Bank Currency so that a total amount is shown in the Deposited field and in the 'Receipts: Browse' window. In smaller companies, this can help maintain a mental picture of the cash flow situation. If there are any bank charges attached to this particular Payment, they should be entered using the 'New Fee' function on the Operations menu in the Currency. Bank Amount: The default is taken from the Received Value. The Amount paid, expressed in the Bank Currency. If the Currency is changed, the Bank Amount is converted using the current Conversion Rates: these cannot be modified for an individual Payment. Do not use this field to subtract bank fees from the amount paid: the 'New Fee' function on the Operations menu is provided for this purpose. In normal circumstances, you should not change the Bank Amount and Currency. In the case of partial Payments or overpayments, change the Received Value (described below) and the Bank Amount will be altered automatically by Enterprise, taking exchange rates into consideration if necessary. If you change the Bank Amount, the Received Value will not be updated automatically, so such an alteration should only be made in exceptional circumstances. Examples might be when you know that the exchange rate that will be levied by the bank will be different to the latest rate in Enterprise, or when you know the exact amount of the Receipt as added to your bank account. Changing the Bank Amount is therefore effectively the same as changing the exchange rate for a single Receipt row. R. Cur: The default is taken from the Invoice. The Receipt Currency: enter the Currency used by the Customer on their Payment (for example, the Currency used on the Check). The default is the Currency used on the Invoice, but any Currency can be used. If the Currency is changed, the Received Value is converted using the current conversion rates: these cannot be modified for an individual Payment. Received Value: The default is taken from the Outstanding Amount on the Invoice or Sales Order Total. The amount paid is expressed in the Receipt Currency. The default can be changed, in the event of partial Payments or overpayments. If the Currency is changed, the Received Value is converted using the current Conversion Rates: these cannot be modified for an individual Payment. If the amount is altered before the Currency, the conversion will apply to the altered Amount. When a Prepayment Number that is also an Order Number is entered on flip D, the Order total will appear here. Cust. Info. on G/L Transaction: When a General Ledger Transaction is generated automatically from this Receipt, use this option if you would like to have the Receipt Number, Payment Date and Customer shown on flip E of the Transaction. This applies to the posting to the Debtor Account only. The check box will be checked by default if you are using the Invoice Info on G/L Transaction option on card 1 of the Account Usage A/R setting. Footer Currency: If the Bank Currency for all Payments on the Receipt is the same, that Currency is additionally shown here so that it can be displayed in the 'Receipts: Browse' window. Deposited: The sum of the Bank Amounts: the total for this Receipt. This field only contains a value if all Payments on the Receipt feature the same Bank Currency. Enterprise by HansaWorld Accounting Basic page 44/76

46 Receipts in Currency If you have issued Invoices in a foreign Currency, it may be necessary to calculate a Rate Loss or Gain. By the time the Payment in Currency reaches you, it may convert to a different amount in your home Currency compared to the Invoice. So, in order for the credit posting to the Debtor Account to be balanced by the debit posting to the bank, a rate loss (or gain) must be debited (or credited) to a third Account (for Exchange Rate losses and gains). In fact it is possible to have separate Accounts for rate losses and rate gains. These Accounts are specified on card 2 of the Accounts Usage A/R setting. It is usually against the exchange rate that the balancing must take place: bank fees and the amount received are not usually changeable. In the General Ledger Transaction created from a Receipt in Currency, that Currency together with the Exchange Rate used will be noted in the Text field. Checking and Approving Receipts Before a Receipt is approved (OKed), it should be checked to ensure that no mistakes have been made in entering it to Enterprise. Once it has been checked, there are two ways to approve a Receipt: " Click the OK check box with the Receipt on screen and then save it by clicking [Save]. " Select a Receipt by clicking on it in the 'Receipts: Browse' window, and select 'OK' on the Operations menu. By holding down the Shift key you can highlight a batch of Receipts to approve at a single stroke using this method. The approval causes the Receipt to be inserted into your Accounts Receivable. Except when expressly instructed otherwise, only OKed Receipts are shown in the reports. Just as with Invoices, if so defined in the Sub System setting in the General Ledger, a General Ledger Transaction is generated and passed to the General Ledger when the Receipt is OKed. General Ledger Transactions from Receipts When a Receipt is OKed and saved, a General Ledger Transaction will be generated automatically if you have so determined in the Sub System setting in the General Ledger. Please refer here for full details of this Transaction. Once the Transaction has been generated, you can look at it straight away using the 'Open G/L Transaction' function on the Operations menu. OK: This command is available on the Operations menu only from the 'Receipts: Browse' window. It permits the approving of a Receipt and is therefore the equivalent of checking the OK box in a Receipt record. You can also select several Receipts (hold down the Shift key to select a range of Receipts in the list) and approve them all at once. Remember that, if so defined in the Sub System setting in the General Ledger, this action causes General Ledger Transactions to be created for each Receipt in the selection and that therefore once it has been carried out you will no longer be able to modify those Receipts. Enterprise by HansaWorld Accounting Basic page 45/76

47 Add Settlement Discount In normal circumstances, when an Invoice is paid, a settlement discount is calculated when the Receipt is entered. This discount is determined by Enterprise according to the Payment Terms of the Invoice and the Receipt Date. This function is provided for more individual circumstances. After an Invoice Number has been specified, change the Received Value to the figure paid (i.e. the Invoice Total less cash discount) click on the invoice number and select this function. A new row will be created, containing the phrase "Cash Disc". As a default, the Received Value of this new row will be set to the figure that remains outstanding on the Invoice: this can be changed as appropriate. When the General Ledger Transaction is created, the Cash Discount Account specified on card 1 of the Account Usage A/R setting will be debited. Add Write-Off This function can be used to write off an Invoice. Specify the Invoice to be written off and change the Received Value to zero. If you need to record a partial Payment and wish to write off the remainder, change the Received Value to the value of the partial Payment, then, select this function. A new row will be created, containing the phrase "Write off". The Received Value field will be set to the remaining outstanding amount (i.e. the amount that is to be written off). Add Fee This function should be used when you need to pay a bank charge for the Receipt. Start by entering the Invoice number in the left-hand column. Then select 'New Fee' from the Operations menu. A new row will be created, containing the phrase "Fee". Enter the Bank Fee in the right-hand Amount field. When the General Ledger Transaction is created, the Bank Fee Account specified on card 2 of the Account Usage A/R setting will be debited. The Received Value less the Bank Fee will be debited to the Bank Account from the Payment Mode, while the full Received Value will be credited to the Debtor Account. Distribute Receipt In certain cases a Customer can pay a lump sum without indicating any Invoice Numbers. In this circumstance, specify the Customer Number and enter a Received Value and then select this command. Enterprise will spread the amount over one or more Invoices as appropriate, starting with the oldest. Calculate Amount This function can be used for Receipts where the Received Value and the Bank Amount are in different Currencies and for whatever reason, the Bank Amount is not a correct conversion of the Received Value. This might be because it has been accidentally mis-typed, or because you are reviewing a Receipt prior to approving it and the exchange rate has changed since it was originally entered. To ensure the Bank Amount is a true conversion of the Received Value, place the cursor in the Bank Amount field and select this function. The Bank Amount will be recalculated using the current Base Rate. Note that changing the Received Value will always cause the Bank Amount to be recalculated, so this function should only be used when it is necessary to change the Bank Amount without changing the Received Value. Create Down Payment An Invoice can be raised immediately from the Receipt screen if you have received a deposit (or 'Down Payment') against an Order. A Down Payment by the Customer is entered as a Receipt, but leave the Invoice Number blank. Instead, a Prepayment Number should be specified on flip D. For the purpose of the 'Create Down Payment' function, this must be the Enterprise by HansaWorld Accounting Basic page 46/76

48 Order Number of the Order against which the Down Payment has been received. If you enter the Order no. on flip D, all the data will be copied from the order, including the Prepayment no. To make it even easier, you can use Paste Special to obtain a list of Orders from which the correct one can be chosen. Change the Received Value to the value of the Down Payment if this is different. In order for this to be possible the Customer card being used for the transaction must have the On Account box on the 'Terms' tab checked. Ensure the cursor is in the row containing the Down Payment, the Received Value must be greater than zero and that the Inv No field in that row is blank. Then select 'Create Down Payment' from the Operations menu. An Invoice for the Down Payment is created immediately. It is opened in a new window, entitled 'Invoice: Inspect'. This means that it has been created and saved and is being opened for amendment and approval. The text ("Deposit for") is taken from the Down Payments setting in the Sales Orders module, while the Tax Code (and therefore the Tax calculation) and the Sales Account are taken from the Item specified in that setting. Approve the Receipt and save it in the usual way by clicking [SAVE] How to use a prepayment A Prepayment Receipt is usually used where a Customer has paid a deposit against a Sales Order, before an Invoice has been raised for that deposit. For each Customer likely to pay deposits, switch on the On Account check box on the 'Terms' card. Then specify a control or suspense Account on card 2 of the Account Usage A/R setting, using the On Account A/C field. A separate suspense Account can be set for each Customer Category. A Prepayment by the Customer is entered as a Receipt, but leave the Invoice Number blank. Instead, a Prepayment Number should be specified on flip D. This can be a number of your own generation, the number allocated to the prepayment by the Customer or, preferably, the number of the Sales Order against which the deposit has been received. Using Paste Special from this field will open a list of Sales Orders from which the correct one can be chosen. If you want to ensure that only Sales Order Numbers can be used, switch on the Use Sales Order No for Prepayments option in the Down Payments setting in the Sales Orders module. If a Sales Order Number is used, the Customer Number on flip A will change to that from the Sales Order and the Received Value will be changed to the Order value. Change this to the value of the deposit if this is different. In this example the special Account for on account Customers is 26600, since receiving a Prepayment creates a liability. The General Ledger Transaction generated when the Receipt is OKed and saved will credit the Received Value to this Account. The debit Account is taken from the Payment Mode as usual: Enterprise by HansaWorld Accounting Basic page 47/76

49 When a sale is made, an Invoice can be raised. When this is done, the Prepayment can be allocated to that Invoice so that it can be treated as paid. When you are certain that the Invoice is complete, select 'Connect to Prepayment' from the Operations menu. In the first blank row of the grid area, a reference to the Prepayment is entered. Enter the Prepayment Number of the Receipt row representing the Prepayment, using 'Paste Special' if necessary to bring up a list of open (unallocated) Prepayments. This list shows open Receipt rows with a Prepayment Number and without an Invoice Number. Receipt rows that do not have a Prepayment Number or an Invoice Number will not be in this list: please refer to the On Account Receipts page for details of allocating these to Invoices. Select a Prepayment from the list by double-clicking it. The Prepayment Number is shown in the special Prepayment row. An amount will also be shown. This will be the whole open value of the Prepayment, or the value of the Items including Tax (i.e. the Invoice value) whichever is the lower. This figure will be credited to the Debtor Account when the Invoice is OKed and saved, so the Invoice will be treated as paid to that extent. When the Invoice is OKed the consequent General Ledger Transaction will combine the usual Invoice postings with those incurred by allocating a Payment against the Invoice. This maintains a correct Accounts Receivable for the Customer: The status of the Invoice and of the Prepayment will now be as follows: " if the Invoice value is the same as the whole open value of the Prepayment, the Invoice is treated as paid and will not appear in the Open Invoice Customer Statement. The Prepayment is fully used up by the Invoice, so it is no longer regarded as open; " if the Invoice value is less than the whole open value of the Prepayment, the Invoice is treated as paid and will not Enterprise by HansaWorld Accounting Basic page 48/76

50 appear in the Open Invoice Customer Statement. The Prepayment is not fully used up by the Invoice, so the remaining outstanding amount is still regarded as open; or " if the Invoice value is more than the whole open value of the Prepayment, the Invoice is treated as part-paid. The Prepayment is fully used up by the Invoice, so it is no longer regarded as open. On Account Receipts An On Account Receipt is one with no Invoice Number and with no Prepayment Number. It is possible to connect an On Account Receipt to a subsequent Invoice, but the 'Connect to Prepayment' function cannot be used. Instead, the Invoice is first entered and OKed without reference to the On Account Receipt. It must then be registered as having been paid by the On Account Receipt. This is done in a Receipt record as a two-step process: Creating an On Account Receipts Make sure that checkbox Use prepayments instead of on account is not ticked in Account Usage A/R setting. Create a new receipt in the same way it was for prepayments. Do not enter prepayment number. The On Account is now registered in the system. The Invoice has also been registered. Now in a new Receipt connect the On Account with the Invoice: In order to update the Accounts Receivable correctly, the Payment information must be entered twice as shown above: as a normal row and with a negative sign as an On Account Receipt. First row is the On Account, the minus is indicating that the On Account is used. Second row is the Invoice (the document number is mentioned), this is informing that the Invoice has been fully or partly paid. Enterprise by HansaWorld Accounting Basic page 49/76

51 Correcting Mistakes in Receipts Even with the tightest quality control, it is probable that the occasional mistake will be made when entering Receipts. Once a Receipt has been OKed, it cannot be changed, but mistakes can nevertheless be rectified easily using the following procedure. It is important that this procedure is followed, so that the Customer's Payment history remains correct. 1. In the 'Receipts: Browse' window, highlight the Receipt containing the error. 2. Click [Duplicate]. A new Receipt record is created, an exact copy of the Receipt with the error. 3. Insert a minus sign in front of the Received Value, ensuring the Received Value figure itself remains unchanged. 4. Click the OK check box and save the Receipt. 5. Enter a new, correct, Receipt. Enterprise by HansaWorld Accounting Basic page 50/76

52 ACCOUNTS PAYABLE Settings Go to the Module Accounts Payable and open the Settings Initial Set up In the setting Account Usage A/P you will determine which Accounts are to be used as defaults by your Accounts Payable Transactions. These defaults will be used in the absence of Accounts or Tax Codes being specified elsewhere. If you have imported the sample Chart of Accounts supplied with Enterprise, you will find that most of the fields in the account usage A/P setting contain suggested values. If you have modified this Chart of Accounts or have used your own, you will need to ensure that these values are replaced with the correct accounts. Creditors Tab ACCOUNT FIELDS Creditors: Enter the Account Code of the Account that you wish to be used as your Creditor Account. It will be overridden if a separate such Account has been specified for the Vendor or Vendor Category. Prel. Creditors: It is possible to post a Payable to a preliminary Account when it is first received and to subsequently move the posting to the normal Creditor Account when OKed. If you wish to make use of this feature, which allows the later amendment of the Cost used, specify the preliminary account to be credited here. Cash: This account will be credited instead of the Creditor Account whenever a cash purchase is OKed. The Account specified will be overridden if a separate such Account has been specified for the Pay Term in the Cash Note. Settl. Discount accounts: When Settlement discount is given from a Vendor upon receipt of Payment, the discount is to be booked to these specified accounts. On Account A/C: When an account Payment has been made to a Vendor and cannot be offset against a specific Payable, it will be booked against this account (Pre Payment to Vendors) Bank Fee: Enter the Account Code of the Account to be debited by any bank charges you may incur when issuing Payments. CHECKBOXES Objects on Creditors A/C: With this setting on, Enterprise will transfer the Objects entered from the Vendor to the other card of all Payables entered in their name. When approving Payables, any Objects specified on the Other card will be assigned to the debit posting to the Purchase Account when an G/L Transaction is generated. If this check box is checked, they will be assigned to the credit posting as well. Sub-ledger Checking: Check this box if you want to use the sub-ledger checking feature in the Accounts Payable. This will mean that it will only be possible to post to the specified Account (Creditor Accounts) from the Sub-Ledger (Payables/Payments). It will prevent you from accidentally and incorrectly posting transactions in General Ledger transactions (excluding receipts) Vendor Info on Transaction: When G/L Transactions are generated automatically from the Payables & Payments, this Enterprise by HansaWorld Accounting Basic page 51/76

53 option will ensure that the Payable / Payment no, Payment date and Vendor is displayed on the G/L Transaction. Objects on On Account A/C: When entering a Payment, the Object for the debit posting to the Creditor Account will be taken from the Other card of the Payable being paid. In the case of an On Account Payment or a Prepayment, there is no Payable to supply the default Objects. Instead the default Objects can be taken from the Accounts card of the Vendor. Check this box if you want to use this option. If the box is not checked no default Objects will be offered in On Account Payments and Prepayments. Vendor Object on Inventory A/C: When entering a Goods Receipt, the Objects on the Comment card are taken from the Vendor. These will be assigned to the Credit posting to the Purchase Control Account when a General Ledger Transaction is generated from the Goods Receipt. Check this box if you would like them to be assigned to the debit posting to the Inventory Account as well. Force Unique Prepayment numbers: Check this box if you would like to ensure that unique Prepayment Numbers are always used when entering Prepayment Payments (Flip E). Separate Row per Payment row on Bank A/C: When you enter a Payment with several rows the resulting G/L Transaction will usually contain a single credit posting to the Bank Account. Check this box if you would like such Transactions to contain separate credit postings for each Payment row. The Description in each credit posting will show the Payable number and Vendor Name. Tax Tab ACCOUNT FIELDS Settl Discount Tax, on Account Tax and Prepayment Tax: Specify each Tax input receivable account as set up. Local Tax Code, Domestic Tax Code, and Export Tax Code: Tax Codes control which Tax Account will be used when a Payable is posted to the General Ledger and the rate at which Tax will be charged. Tax Codes records are set up using the Tax Codes settings in the General Ledger. You can specify a separate Tax Code for each Account. Enter the Tax Code that you wish to be used whenever an Account that does not have its own Tax Code is used in a Payable. Normally, if most of your company s Vendors are registered for Tax, this will be the Tax Code representing the standard rate. Alternatively it will be a zero rate Tax Code. CHECKBOXES Set Tax Value on Payable: Tick this to Show Tax value on Payables Objects on Tax Account: Select this to show objects on your Tax Account. Enterprise by HansaWorld Accounting Basic page 52/76

54 Rate Tab If necessary, losses and gains on Exchange Rates conversions can be posted to separate loss and gain Accounts. Different loss and gain Accounts may be specified. Rate Round off, EMU Rate Round off, EMU Rate Write Off, Write Off Round Off, : These Accounts are used in the situation where a Payable is to be treated as fully paid if the amount received is slightly different to the outstanding amount, providing that the difference is within an allowed margin. The difference is posted to one of these Accounts. Enterprise by HansaWorld Accounting Basic page 53/76

55 ENTERING PAYABLES Payable Register The Payable register is a record of your company's purchases. Each time a purchase is made, a Payable will be received from the Vendor and this should be entered to the Payable register. This register is thus used for a number of tasks: The Payable is a record of the Payment demanded from your company by the Vendor; Unpaid Payables in the register provide the basis for your creditor management reports; Each Payable can cause a General Ledger Transaction to be created, thus generating the overall purchase and creditor figures in your monthly and yearly management reports. This creation process is automatic, requiring no intervention or work from you. Payables register. This register is thus used for a number of tasks: Four types of purchase transactions can be recorded in the Payable register a. Standard Payables are received where the goods have been delivered or work carried out before Payment has been issued. Payments against such Payables should be recorded in the Payment register b. The Cash Note represents the issuing of a Payment at the same time as the work is carried out. When a Cash Note is entered to the Payable register, Enterprise will treat it as having been paid, so there is no need to enter a separate Payment record. c. A deposit is the issuing of money before an Payable has been received. These should be recorded in the Payment Register as a Prepayment Payment. These can be allocated to the Payable when it is received at a later date. d. Credit Memos are used to correct mistakes in Payables, or to cancel Payables that have been raised in error. They are, in effect, negative Payables that reduce your overall purchase and creditor figures. If you would like Enterprise to look after the General Ledger implications of all these types of Payables as described, switch on the Payable option in the Sub System setting in the General Ledger. Records can be entered to the Payable register using the following methods: " They can be entered directly to the Payable register. This method is suitable for all the types of purchase transactions mentioned above. " They can be created remotely from other registers, such as Purchase Orders and Goods Receipts. This method will probably be used for standard Payables. Payables are given a unique internal identifying code, using a consecutive numbering system. Entering a Payable To enter a new Payable, click [New] in the Button Bar or use the -N keyboard shortcut. Alternatively, highlight a Payable similar to the one you want to enter and click [Duplicate] on the Button Bar. Since the amount of information stored about each Payable will not fit on a single screen, the Payable window has been divided into six cards. At the top of each is the header. This contains the Payable Number, the Vendor's Number and Name, and other information. There are six named buttons ('tabs') in the header: Terms, Costs, Currency, Comment, Accounts and Inv. Address. Enterprise by HansaWorld Accounting Basic page 54/76

56 If you have the Purchase Orders module, it is possible that many Payables will be created remotely from the Purchase Orders screen. If so, you will find that most of the fields in the Payable will contain information carried over from the corresponding Purchase Order. No.: When entering a new Payable, Enterprise will enter the next unused number from the number sequence allocated on the 'Serial Nos' card of the user's Person record or from the Number Series - Payables setting. You may change this number, but not to one that has already been used. If you are using the Common Number Series option in the Cash Book Settings setting in the Cash Book module, the Payable Number may change if you enter a Payment Mode to the Payment Terms field, or if you use a Vendor with a Payment Mode in their Payment Terms field. Vendor: In this field you can use Paste Special to the Vendor register. When you press Return, the Vendor's name, address and other information will be entered into the appropriate fields. TOTAL: The total amount to pay for this Payable, including any Tax or taxes. Tax: Enter the total Tax amount from the Payable. The purpose of this field is to provide a control figure. When the Payable is saved, the Tax total from the Payable rows (shown in the Calc. Tax field in the footer) should be the same as this control figure. Terms Tab Invoice Date: In this field you can use Paste Special to the Current Date. This date, together with the Payment Terms, will determine when the Payable will become due for Payment. Payment Terms: Payment Terms entered here will determine the Due Date (below). Payment Terms records entered using the Accounts Receivable setting can enable a system of early settlement discounts to be established. Payment Terms are also the means by which Cash Notes and Credit Memos are distinguished from ordinary Payables. Transaction Date: In this field you can use Paste Special to the Current Date. The Transaction Date is used for the generated General Ledger Transactions and determines the accounting period for the Payable. Due Date: The last day for Payment of this Payable, calculated by Enterprise using the Invoice Date and the Payment Terms. This field can be changed, even after the Payable has been OKed. If you receive an extended credit time for this Payable, it will be re-scheduled in your Accounts Payable. Vendor Inv. No.: The Vendor's Invoice number. Signers: In this field you can use Paste Special to the Person register in the System module. It contains the initials of the person who OKed the Payable. Initials of more than one Person can be entered, separated by commas. Reference: Record here any additional code by which the Payable can be identified: it can be printed on the Payment Order document. On Hold: Check this box if you wish to prevent this Payable from being paid. You can do this after the Payable has been OKed. Enterprise by HansaWorld Accounting Basic page 55/76

57 Prel. Booking: If this option is used, a General Ledger Transaction is generated for the preliminary booking. Normal Tax and Cost Account postings take place, but, instead of the usual Creditor Account, a preliminary Account is credited. As long as the Payable is in the temporary state, the Cost Accounts of any of the Payable rows may be changed. Discount Date: The date by which the Payable is to be paid if a cash discount is to be received. This will be calculated using the formula attached to the specified Payment Term record. Sett. Discount: If settlement discount is applicable on the Payable for early payment, the amount will be listed here. Credit of Invoice: In this field you can use Paste Special to the Unpaid Payables. If you are entering a Purchase Credit Memo (a "debit note"), enter here the number of the Payable being credited. Remember to specify a Payment Term of type "Credit Memo" in the Payment Terms field. A/C: This is where you specify the Cost Accounts to be debited by the Payable. Enter an Account number (you can use Paste Special) and press Enter. This will cause the Account name to be entered automatically to the Description field. Objects: In this field you can use Paste Special to the Object register, General Ledger/System module. Up to 20 Objects, separated by commas can be assigned to this row. They will be transferred to the General Ledger Transaction generated for this Payable, and can be used for your profit centre reports. Short: In this field you can use Paste Special to the Account Short Codes setting, General Ledger. Short Codes can help reduce errors when selecting Accounts and Objects. You can also use them if you do not want members of staff using the Payables and Expenses modules to have any access to the Account and Object registers (which means that 'Paste Special' cannot be used). Amount: The amount to be debited to the Cost Account. If a Currency has been specified, this figure should be in that Currency. A convenient way of ensuring the value in this field is correct is to move the cursor into the field and then press the Enter or Return key. Enterprise will enter the correct value to balance the Payable, taking the TOTAL and any previous rows into account. T-Cd: In this field you can use Paste Special to the Tax Templates / Tax Codes setting, General Ledger. The Tax Code entered here refers to a Tax Code record entered using the Tax Codes setting in the General Ledger. It determines the rate at which Tax will be charged on this Item and the Tax Account to be debited. A default is offered, taken from the Vendor, the Account record or, if none is specified there, from card 3 of the Account Usage A/P setting. Flip B If you need to use Enterprise's Intrastat reporting feature, you should ensure the Item and Quantity fields on flip B of each Payable are filled out correctly before approval. This document takes this information from these fields. Inventory Type: Inventory can either be handled as purchases or it can be sent to a Vendor as consignment inventory. Paste Special to select the appropriate option here. Item: In this field you can use Paste Special to the Item register. You may enter the Item number of the purchased Item here. This information is used by the Job Costing module. In the case of Payables created from Purchase Orders, Item Numbers will be copied if either of the following options are used: Consolidate by Items and Project or Transfer Enterprise by HansaWorld Accounting Basic page 56/76

58 Each Row Separately, in the Payable Settings setting. Qty: The quantity purchased can be entered here. In the case of Payables created from Purchase Orders, Quantities will be copied over if either the Consolidate by Items and Project or the Transfer Each Row Separately option in the Payable Settings setting is in use. Project: In this field you can use Paste Special to the Project register, Job Costing module, the Number of a Project to which the Payable can be linked. This field is used only if the Job Costing module is used in your system Flip C G/L Accrual: In this field you can use Paste Special to the G/L Accruals setting, General Ledger OK: When you check this box and save the record by clicking [Save], the Payable is OKed and entered into the Accounts Payable, and a corresponding Transaction is created in the General Ledger. Currency: The default value for this field is taken from Vendor or Default Base Currency. The currency used in the Payable: the exchange rate is shown on the 'Currency' card where it can be modified only for this particular Payable if necessary. If the Vendor record has a Currency specified on the 'Company' card of the Vendor screen, only that Currency can be used. Otherwise, any Currency can be used. Calculated Tax: The Tax sum, calculated from the Payable rows. This figure is calculated automatically as rows are added to the Payable. This figure is rounded up or down according to rounding rules set for the Currency (in the Currency Round Off setting in the System module). If no Currency has been specified, or the Currency in question has not been entered in the Currency Round Off setting, the rounding rules are taken from the Round Off setting (also in the System module). In the General Ledger Transaction resulting from this Payable, any amounts lost or gained in this rounding process are posted to the Round Off Account specified in the Account Usage Settings. Currency Tab In the Currency field you can use Paste Special to the Currency register, System module. Default taken from Vendor or Default Base Currency. The Currency of the Payable (also shown in the footer of the 'Costs' card) is shown together with the exchange rate which can be modified only for this particular Payable if necessary. Enterprise by HansaWorld Accounting Basic page 57/76

59 Comment Tab Factoring: The Default value for this field is taken from Vendor. If the Vendor is one that uses a factoring company (to which Payments are to be sent), enter the Vendor Number of that company here (that company must also be in the Vendor register). Creditors A/C: In this field you can use Paste Special to the Account register, General Ledger/System module. The Creditor Account which will be used in any General Ledger Transaction generated from this Payable is shown here. Accounts Tab P/Order No.: In the case of Payables created from Purchase Orders, the Purchase Order Number will be shown here. This field cannot be changed. Bank Account: The Vendor's bank account number is brought in from the 'Accounts' card of the Vendor record or, if appropriate, from the record of the Vendor's factoring company. When a Payment is issued against the Payable, it will be shown on flip H of the Payment record. If necessary, it can be changed to allow Payment to be sent to a different account. Enterprise by HansaWorld Accounting Basic page 58/76

60 Sort Code: The Sort Code (branch number) of the bank where the Vendor's account is held is also brought in from the Vendor or the Factoring Vendor. When a Payment is issued against the Payable, it will be shown on flip H of the Payment record. Tax ID No.: Default taken from the Vendor's Tax registration number. It is important that this field contains a value if the Vendor is in the "Domestic" Zone as this information is then required for Tax reporting purposes. Payments This register is used to issue Payments to creditors. Keeping the Payable and Payment registers up to date will allow you to operate an efficient system for paying your Vendors and will help you to predict your cash flow accurately. Entering a Payment In the Accounts Payable module, select 'Payments' from the Registers menu, or click the [Payments] button in the Master Control panel. The 'Payments: Browse' window is opened, showing Payments already entered. To enter a new Payment, click [New] in the Button Bar or use the -N keyboard shortcut. Alternatively, highlight a Payment similar to the one you want to enter and click [Duplicate] on the Button Bar. The 'Payment: New' window is opened, empty if you clicked [New] or containing a duplicate of the highlighted Payment. The principle for entering a Payment is that you know the following facts: " How much has actually been withdrawn; and " Any extra fees charged by the bank. In the case of Payments in Currency, in order for the accounts payable to balance, the possible rate loss or gain must be posted to a separate Account, not to the Creditor Account. Exchange Rate Loss and Gain Accounts are specified on card 2 of the Account Usage A/P setting. The balancing must usually take place against the Exchange Rate: bank fees and the amount withdrawn cannot be changed. Enterprise by HansaWorld Accounting Basic page 59/76

61 First a run-through of the fields. Header No.: The serial number of the Payment: Enterprise will enter the next unused number from the number sequence allocated on the 'Serial Nos' card of the user's Person record or from the Number Series - Payments setting. You may change this number, but not to one that has already been used. If you have used the Payment Modes setting to define separate number sequences for each Payment Mode, the Payment Number will be determined by the default Payment Mode and will change if the Payment Mode is changed. Number sequences defined in the Payment Modes setting are not shown in the Paste Special list. Payment Date: The date when you want the Payment to be executed. Once a Payment has been ordered, it is still possible to change the Payment Date. When the Payment has been OKed, however, no further changes are possible. Trans. Date: The date of the General Ledger Transaction resulting from this Payment. This date is always the same as the Payment Date and cannot be changed independently. Payment Mode: The Payment Mode determines the General Ledger Account to be credited by the Payment. On a single Payment record it is possible to enter Payments to different Vendors against different Payables. Own Bank A/C: The number for the bank account you want to use for the Payment. This information will be brought in from the Payment Mode record. Reference: This field can be used if you need to identify the Payment by any means other than the Payment Number (e.g. a bank reference in the case of credit transfers or BACS Payments). Ordered: The Ordered and OK check boxes are provided to allow for the delay between the issuing of a Payment and the clearing of the funds from your company's bank account. Checking the Ordered box indicates that a Payment has been issued, while checking the OK box indicates that the funds have been cleared. The Ordered box must therefore be checked before the OK box. OK: Payments are OKed by clicking this check box. On clicking [Save] to save the Payment, if so determined in the Sub System setting in the General Ledger, a Transaction will be generated crediting the Bank Account specified for the Payment Mode and debiting the Creditor Control Account of the Payable being paid. References in these web pages to OKed Payments are to Payments whose OK check box has been switched on. Flip A Invoice No.: The number of the Payable being paid. On entering an Payable Number, the Currency, if any, of the Payable will be brought in and, if the Payable qualifies for an early settlement discount, a discount row is inserted automatically, together with a suggested discount amount. The Vendor code and Name will also be brought in. B. Cur: In this field you can use Paste Special to the Currency register, System module. The default value for this field is taken from Sent Currency. The Bank Currency: enter the Currency of the amount as issued from the bank. Bank Amount: The default value for this field is taken from the Sent Value. This is the amount paid, expressed in the Bank Currency. If the Currency is changed, the Bank Amount is converted using the current conversion rates: these cannot be modified for an individual Payment. Do not use this field to subtract bank fees from the amount paid: the Enterprise by HansaWorld Accounting Basic page 60/76

62 Bank Fee field on flip I is provided for this purpose. In normal circumstances, you should not change the Bank Amount and Currency. Flip C Check No.: Record the number of the Check used for the Payment here. To generate a Check Number automatically, ensure the cursor is in the appropriate row and choose 'Assign Check Number' from the Operations menu. The next number after that in the last Payment entered will be placed in this field. P. Mode: Enter a Payment Mode, if different from the Payment Mode entered in the header. This allows different Payments on the same Payment to be credited to different Bank Accounts. Flip D Order No.: If the Payment is a deposit against a Purchase Order, you can enter the number of the Purchase Order to this field or to the Prepayment Number field immediately to the right. If you enter it here, the Vendor on flip A will be changed to that of the Order. The Bank Amount and Sent Value will be changed to the Order total, and the Order Number will be copied to the Prepayment Number field. Please refer to the description of the Prepayment Number field below for full details. Prepayment No: In this field you can use Paste Special to the Open Prepayments. If the Payment is a Prepayment (i.e. one where it is not possible to specify an Invoice Number on flip A), an entry should be made to this field. This can be a number of your own generation, a reference given to the Prepayment by the Vendor or, preferably, the number of the Purchase Order against which the deposit has been issued. Flip F Objects: The default value for this field is taken from Payable ('Other' card) or Vendor. Up to 20 Objects, separated by commas, can be assigned to this Payment and all transactions generated from it. You might define separate Objects to represent different departments, cost centers or product types. This provides a flexible method of analysis that can be used in General Ledger reports. Flip H To Bank A/C: The number of the Vendor's bank account receiving the Payment is brought in from the 'Other' card of the Payable or from the 'Accounts' card of the Vendor record. Sort Code: The branch number of the bank holding the Vendor's bank account is brought in from the 'Other' card of the Payable or from the 'Accounts' card of the Vendor record. Flip I Bank Fee: Enter any fee charged by the bank for this Payment. This figure should be in the Bank Currency. Bank fees will be debited to the Bank Fee Account specified on card 1 of the Account Usage A/P setting. In calculating the value of the credit posting to the Bank Account specified in the Payment Mode, the Bank Fee will be added to the Sent Value. The Sent Value will be debited to the Creditor Account. B. Cur. 1 V.: Base Currency 1 Value - the amount paid, expressed in Base Currency 1. In normal circumstances, the Bank Amount and Sent Value fields on flip A are sufficient to express the value of the Payment. If the Sent Currency and Bank Currency are different, the General Ledger Transaction resulting from the Payment will contain values in all appropriate Currencies, converted using the latest Exchange and Base Rates. B. Cur. 2 V.: Base Currency 2 Value - the amount sent, expressed in Base Currency 2. This field must contain a value if so specified for the Payment Mode. Footer Currency: If the Bank Currency for all rows on the Payment is the same, that Currency is additionally shown here so that it can be displayed in the 'Payments: Browse' window. Withdrawn: The sum of the Bank Amounts: the total for this Payment. This field only contains a value if all rows on the Payment feature the same Bank Currency On Account Payments On Account Payments and Prepayments can be used when you issue Payments to Vendors without reference to specific Payables (usually before you have received the Payables). These can be entered to the Payment register without specifying a Invoice Number on flip A. In the case of a Prepayment, a Prepayment Number is specified on flip D instead. In the case of an On Account Payment, both the Invoice Number and the Prepayment Number are left blank. Please click for full details of Prepayments and On Account Payments. Enterprise by HansaWorld Accounting Basic page 61/76

63 Prepayments A Prepayment is usually used where a Vendor has been paid a deposit against a Purchase Order, before a Payable has been received for that deposit. For each Vendor to whom you are likely to pay deposits, switch on the On Account check box on the 'Terms' card. Then specify the control or suspense Account number on card 2 of the Account Usage A/P setting, using the On Account A/C field. You can also specify a separate suspense Account for each Vendor Category or even each Vendor if you wish. Prepayments issued by your company to the Vendor is entered as a Payment, but leave the Invoice Number blank. Instead, a Prepayment Number should be specified on flip D. This can be a number of your own generation, the number allocated to the Prepayment by the Vendor or, preferably, the number of the Purchase Order against which the deposit has been issued. Using Paste Special from this field will open a list of Purchase Orders from which the correct one can be chosen. If a Purchase Order Number is used, the Vendor Number on flip A will change to that from the Purchase Order and the Sent Value will be changed to the Order value. Change this to the value of the deposit if this is different. The special Account for on account Vendors used in this example is since raising a Prepayment creates an asset. The General Ledger Transaction generated when the Payment is OKed and saved will debit the Sent Value to this Account. The Credit Account is taken from the Payment Mode as usual: When the Payable arrives, the Prepayment can be allocated to that Payable so that it can be treated as paid. If you used a Purchase Order Number as the Prepayment Number, it is likely that you will create the Payable from the Purchase Order screen using the Operations menu function. When the 'Payable: Inspect' window is opened, you will be warned that an open Prepayment (i.e. one that has not yet been allocated to a Payable) exists in the Vendor's name. This will remind you to allocate the Prepayment to the Payable. If you enter the Payable directly to the Payable register, the same warning will appear when you enter the Vendor Number. In this case, complete the grid area in the usual way. When you are certain that the Payable is complete, select 'Connect to Prepayment' from the Operations menu. A new row is Enterprise by HansaWorld Accounting Basic page 62/76

64 inserted as the first row of the grid area, containing a reference to the Prepayment. Enter the Prepayment Number of the Payment row representing the Prepayment, using 'Paste Special' if necessary to bring up a list of open (unallocated) Prepayments. This list shows open Payment rows with a Prepayment Number and without a Payable Number. Payment rows that do not have a Prepayment Number or a Payable Number will not be in this list: please refer to the On Account Payments page for details of allocating these to Payables. When the Payable is OKed, the consequent General Ledger Transaction will combine the usual Payable postings with those incurred by allocating a Payment against the Payable. This maintains a correct Accounts Payable for the Vendor: The status of the Payable and of the Prepayment will now be as follows: " if the Payable value is the same as the whole open value of the Prepayment, the Payable is treated as paid and will not appear in any reports showing Open Payables. The Prepayment is fully used up by the Payable, so it is no Enterprise by HansaWorld Accounting Basic page 63/76

65 longer regarded as open; " if the Payable value is less than the whole open value of the Prepayment, the Payable is treated as paid and will not appear in any reports showing Open Payables. The Prepayment is not fully used up by the Payable, so the remaining outstanding amount is still regarded as open; or " if the Payable value is more than the whole open value of the Prepayment, the Payable is treated as part-paid. The Prepayment is fully used up by the Payable, so it is no longer regarded as open. Note that it is important to ensure that the Payable is complete before selecting 'Connect to Prepayment' from the Operations menu. The function calculates the amount shown in the special Prepayment row: this is the amount that will be debited to the Creditor Account and therefore the amount which goes towards paying off the Payable. If the Payable is incomplete when this function is selected to the extent that the TOTAL (as shown in the header, not as calculated from the Payable rows) is zero (or is otherwise incorrect), this will be the amount shown in the special Prepayment row. When the Payable is completed, OKed and saved, this is the figure that will be debited to the Creditor Account. So the Payable will not be paid off, and the Prepayment will remain open. If you select 'Connect to Prepayment' before the Payable is complete (it may be that a late change is required) you can either change the amount shown in the special Prepayment row or you can delete the special Prepayment row and use 'Connect to Prepayment' once again. If you choose the former option, you will be prevented from entering an amount that is greater than the open value of the Prepayment, or greater than the Payable total. On Account Payments An On Account Payment is one with no Payable Number and with no Prepayment Number. It is possible to connect an On Account Payment to a subsequent Payable, but the 'Connect to Prepayment' function cannot be used. If both the On Account and the Payable without reference to the On Account Payment are already registered in the system and OKed, the third record must now be created to connect those two. This is done with a Payment record as a two-step process: In the above Payment, Payable no is paid and an amount of USD 100 is adjusted against the Payable and a balance amount received in the bank. In order to update the Accounts Payable correctly, you must enter the Payment information twice as shown above; as a normal row, and with a negative sign as an On Account Payment. The example illustration above shows that an On Account Payment of 100,00 has been issued, which has been partially used up by an Payable Correcting Mistakes in Payments Even with the tightest quality control, it is probable that the occasional mistake will be made when entering Payments. Once a Payment has been OKed, it cannot be changed, but mistakes can nevertheless be rectified easily using the following procedure. It is important that this procedure be followed, so that the Vendor's history remains correct. " In the 'Payments: Browse' window, highlight the Payment containing the error. " Click [Duplicate]. A new Payment record is created, an exact copy of the Payment with the error. " Insert a minus sign in front of the Sent Value, ensuring the Sent Value figure itself remains unchanged. Enterprise by HansaWorld Accounting Basic page 64/76

66 " Click the OK check box and save the Payment. " Enter a new, correct Payment. Enterprise by HansaWorld Accounting Basic page 65/76

67 YEAR END At the end of a fiscal period all businesses prepare their year end balances with the purpose of knowing their financial position resulting from their daily operations. To prepare this year end balance and start a new fiscal period it is necessary to close the Profit and Loss accounts. This means that all Income and Expense accounts must to be closed on the last day of the fiscal year. In most companies the fiscal year is the same as the calendar year, but some companies may be using different fiscal years. Spreading income and costs over time To get a result that is as accurate as possible, some income and expenses should be spread over the periods to when they are more appropriately relating to, before closing the year. In the following cases you might have to spread income or expenses over time. 1) When buying assets for example a truck or machines. The whole amount for the machines is paid when buying it. Every asset that you use loses value over time due to its getting older and used. This means that the value of every asset decreases every year. This is called depreciation and it is a cost that is split over a certain period of time, for example a five year period (20% per year). In this case the whole value of the machines will be booked on the asset account for machines (debit). Before closing the year, 20% of the value of the machines is booked on the asset account depreciation of machines (credit). At the same time, a cost is booked on the cost account for depreciation. 2) Spreading costs for Inventory Items over time. Items that have been bought during the year are connected to purchase costs (price, transportation, assembling ). These purchase costs have to be booked to a cost account for Items. If all items that have been bought during the period have also been sold, the cost of your account for sold items represents the actual cost of all items you have sold. If however not all items have been sold, the cost of the unsold items must be moved to a inventory account before closing the year. This is the starting balance of your inventory value in the beginning of the next year. 3) Expenses that have been booked and paid, but that are not supposed to be a cost for the year where they are booked prepaid cost. For example, this can be insurance that is paid that will cover a part of the next fiscal year. Before closing the year the part of the cost that should not be taken into account the current fiscal year should be deducted from the costs and put on the asset account for prepaid costs. Immediately in the beginning of the next year the transaction should be reversed (switch debit and credit) so the cost will be taken on the next fiscal year. 4) Income that is already booked and paid, but that is not supposed to be an income for the current fiscal year prepaid income. This can be a prepayment from a customer who has not yet received the goods or services. Before closing the year the amount should be taken away from the income account and put to the liability account for prepaid income. Immediately in the beginning of the next year the transaction should be reversed. 5) Income that is not yet booked and not paid but that should be an income for the current year accrued income. For example, this can be a rental fee from a customer for this year, that will only be invoiced and paid in February next year. Before closing the year the part of the interest that is for the current fiscal should be booked as an interest income and as an accrued income. Immediately in the beginning of the next fiscal year the transaction should be reversed. 6) Expense that is not yet booked or paid that that should be a cost for the current fiscal year accrued cost. This can be for example the phone bill for the last quarter that will be sent to us in the beginning of the next year. Before the year end the phone cost for the last quarter should be estimated. This cost is booked as a cost on the current fiscal year and as an accrued cost. Immediately in the beginning of the next fiscal year the transaction should be reversed. Profit/Loss After all the year end transactions are done, the profit of the year can be calculated. The income accounts show all the income we had during the year and the expense accounts show the costs that we had. If you deduct the costs from the income the result will show you your profit (or eventually your loss). The income is booked in credit (with minus) while the costs are booked in debit (with plus) If you had for example, income of USD and costs of 8000 USD the profit will be 2000 USD. The calculation will look like: Enterprise by HansaWorld Accounting Basic page 66/76

68 Income Costs Result A negative value of the result shows profit while a positive value shows that the company has made a loss. Enterprise (and most other accounting systems) can reverse the figures so that profit will always be shown with positive figures and loss with negative. To make sure of you have made a profit or a loss compare the income to the costs. When doing the year end, the profit or loss is booked on the liability account for result and is also booked on a special account for accrued results. The profit of the year is a liability to the owners of the company. Balance Sheet A balance sheet is often described as a "snapshot" of the company's financial position on a given date. A modern balance sheet usually has three parts: assets, liabilities and equity. The income and expense accounts are as mentioned above, measured in the Profit and Loss Report. The balance sheet is the most used report in a company for assessing how well a company has done in the fiscal year. Its purpose is to inform everyone that has an interest in the company about the financial situation at the end of the year. The Balance Sheet has also a debit and a credit side. The asset accounts are only written on the debit side, while the equity and liabilities accounts are on the credit side. Year end simulation Enterprise provides a quick and easy way to do the year end by following these steps and running one simple maintenance. These steps can only be followed once all other year end journals have been passed (e.g. depreciation accruals etc) " Go to the General Ledger Module and open the Routines. Select the Maintenance Year End Simulations. " Select an account. Normally you would create an account that is at the end of the chart of accounts specifically for this maintenance. (99999 Special account for Y/E profit postings) [Run] " Go to the General Ledger module and open the Register Simulations " You will find that simulation records have been created. This closes the profit & loss accounts. " The simulation can now be inspected. Once you are satisfied, you can change the simulation to a G/L transactions from the Operations Menu in the Simulations: Browse Window. Enterprise by HansaWorld Accounting Basic page 67/76

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70 REPORTS General Ledger The General Ledger report shows all daily transactions for a specific account. On the left side are all debits and on the right side are all credits. You can enter a specific period and choose a specific account, if an account is not specified, the report will show all account for the specific period. Enterprise by HansaWorld Accounting Basic page 69/76

71 Balance Sheet The Balance Sheet report shows the assets, liabilities and equities of the business for a specific period. This is a static report because it shows the balance sheet accounts that represent all assets at the end of a fiscal year. Enterprise by HansaWorld Accounting Basic page 70/76

72 Profit & Loss The Profit & Loss report shows the economical results of the business operation in a period. This report shows the incomes vs. expenses and shows the net profit or loss in a specific period. This report can be considered one of the principle reports and could be considered a dynamic report because this shows the results after a period. Enterprise by HansaWorld Accounting Basic page 71/76

73 Defining Reports You can change the appearance and format of some General Ledger reports to suit your specific requirements. This is known as changing the report's definition. The reports for which this facility is available are the Balance Sheet, Key Financial Ratios, Profit & Loss Report and Tax Report. To change a report definition, ensure you are in the General Ledger and click the [Settings] button in the Master Control panel. Then double-click 'Report Settings' in the subsequent list. Then highlight a report name in the list on the left-hand side of the 'Report Settings' window and click the [Definition] button. The subsequent definitions windows are described on the pages describing the Balance Sheet, Key Financial Ratios, Profit & Loss Report and Tax Report. You can only use the [Definition] button with the four reports named above. You can use the remaining three buttons with every report, in every module. If you change to another module using the [Select Module] button in the Master Control panel in the usual way, the list of reports on the left-hand side of the 'Report Settings' window will change appropriately. Highlight a report in the list and then click a button, as described below. When you have finished working with the 'Report Settings' window, close it by clicking the close box. Page Setup, Remove Page Setup: The [Page Setup] button allows you to set the page size, number of copies and other printer options for the highlighted report. These settings will be used whenever you print the report. Windows users can also use this function to choose the printer on which the report is to be printed. You can also specify the Page Setup of a report by highlighting it in the 'Reports' list and selecting 'Page Setup' from the File menu. Click the [Remove Page Setup] button to revert to standard. Select Printer: If you are using a Macintosh, use the [Select Printer] button to re-direct the output of the highlighted report to the modem port, to which you can connect a serial (PC) printer (e.g. a dot matrix printer for printing on preprinted inventory of pin-feed paper). Enterprise by HansaWorld Accounting Basic page 72/76