Accounting:
1. Recording-------------Journal---Book of Original Entry
Furniture....................................1000
Cash ................................................1000
2. Classify--------grouping the transactions
3. Summarizing--------accountwise totalling
----------------------------------------------------------------------
CASH FLOW STATEMENT......
Cash Inflow.............
1. CAsh Sales
2. REceipts from your customers
3. Loan from Bank
4. Personal Loan
5. Receipt from Projects
4. Govt borrowings
Total .................................*****
Less:
Cash Outflow..............
1. Cash purchase
2. Payments to suppliers
3. Repayment of loan
4.
5.
Total ................................******
Net Inflow/Net Outflow
-------------------------------------------------------------------------------------------------------------------
Proprietorship-----
Owners' Capital------------10000
Less: Drawings--------------2000
-------
8000
Add: Profits during the
period 3000
------
11,000
======
Partnership-------------------
Partner A
---------
Capital
Less: Drawings
Add: Profits
Partner B
----------
Capital
Less: Drawings
Add: Profits
Company-----------------
Owners' Equity
Share Capital.......................
Reserves & Surplus.................
======================================================================================
Incomes
Less: Expenses
Profit
All Expenses
Less: Incomes
Loss
==============================================================================================
Building:
1. Purchasing at a cost of 10,00,000
Building.......Dr 10,00,000
Bank...........Cr 10,00,000
2. Benefit that the Co. enjoys/ Life of the asset---------> 10yrs
3. Every year....1/10th of the value
Has to show 1/10th of the value i.e. 1,00,000 every year
P& L A/c
Depreciation............1,00,0000
Balance Sheet
Fixed Assets
------------
============
Building
--------
Original Cost 10,00,000
Less: Depcn during the yr 1,00,000
Written down value.................900000
Dr...Depreciation .............1,00,000
Cr...Building............................1,00,0000
==========================================================================================
Accounting Entries
1.
Dr....Furniture.........................50,000
Dr....Cash..............................50,000
Cr.....Ram's Capital a/c.............................100,000
2.
Dr.......Inventory...................75000
Cr.......X a/c/ Accounts Payable..................75000
3.
Dr........Cash.....................100000
Cr........Sales...(Income).............................100000
4.
Dr......Cost of Goods Sold..(Expense).........50000
Cr......Inventory................................50000
5.
Dr. Rent............(Current mth).................1000
Dr. Rent Prepaid/Advance.....(Next mth)...........1000
Cr. Cash................................................2000
6.
Dr.......Salary...............................5000
Cr.......Cash..........................................5000
7.
Dr....Interior Decoration....................2500
DR....Prepaid/...............................2500
Cr.....Cash...........................................5000
8.
Dr.... Y a/c/ Accounts Receivable..............18000
Cr......Sales a/c....................................18000
Dr.........COGS........................10000
Cr. .......Inventory...........................10000
9.
Dr......Vehicle......................25000
Cr......Bank.................................25000
10.
Dr........Bank.................50000
Cr.........Cash......................50000
General Ledger
1.
Central Repository
TransactionS:
1.Entering Journal Entries
2. Posting
4 Cs
====
1.Chart of Accounts/Accounting Structure
========================================
Representing the Account heads by codes-Numeric, Alphabetical or Alphanumeric
Mandatory/ Min no of segments----2
Company--> Balancing segment
Account---> Natural Account segment
Max----> 30
Advised----5/6
Segments in the Account heads--
Company=
Company1----01
Company2----02
Company3---03
.
.
Company99---99
Departments==
Dept 1---001
Dept2----002
Dept3----003
Dept 100---100
Division
Cost Center
Location
Company-Department-Location-Division-Account
01-001-15-5-1110
(Cash)
Furniture-1501
02-003-10-4-1501
020031041501
02-003-10-4-1501
2.
Calendar
========
Jan--Dec
Fiscal Year
3.
Currency
=======
USD
GBP
Rupees
4.
Accounting Method
Flexfield
1.Define Key information specific to that module-----------Key Flexfield
2.Enter additional information specific to the organization----Descriptive Flexfield
Key F/f
1.Mandatory
2.Optional
In General Ledger module
2 Key Flexfields
1.Accounting Flexfield
2.GL Ledger Flexfield
ACCOUNTING FLEXFIELD IS USED TO DEFINE THE CHART OF ACCOUNTS/ACCOUNTING STRUCTURE
Step 1
=======
Define---- Chart of Accounts/Accounting Flexfield/Accounting Structure
========================================================================
a) (N)---Setup> Financials> Flexfields> Key > Segments
Query Mode: F11
To execute: Ctrl+F11
b) Segments Summarydefine the names of the segments
c) Define the Value Set
Right justify and zero-filled numbers
Size-3
1
001
10
010
Yellow----mandatory
White-----Optional
d) Select the value set for each of the segments
e) Choose the Flexfield Qualifiers
2 mandatory Flexfield Qualifiers
Balancing segment
Natural segment
f)
Cross Validate segments
Allow Dynamic inserts
Freeze Flexfield def
Compile
2. Define the calendar
(N) Setup> Financials> Calendars> Types
(N) Setup> Financials> Calendars> Accounting
3. Enable Currency
(N) Setup> Currencies> Define
4.
Entering Values
(N) Setup>Financials> Flexfields> Key> Values
Account No.
SET UPS
=========
SETUP THE LEDGER
Payables
Purchasing
Inventory
Defining Items either in Inventory or in Purchasing Module
Items:
Inventory Item.........Production.....Purchasing module & Payables Module
Expense Item..........................Purchasing module a& Payables module
Capital item---------------------------------------------------------------Fixed Asset
P2P Cycle
(Procure to Pay Cycle)
=======================
Demand > Requisition > Request for Quotation (RFQ) > Quotation > Quote Analysis > Send Purchase Order > Receiving > Enter Purchase Invoice > Payment to the Invoice >
Invoice NO--100...............100000
Received 95....................95000
Record.......................-5000
Short receipt-5
Part reversal -for 5 units---Debit note or a credit note
Going for inspection at the time of receipt 5 items don't meet quality standards
Invoice-100
Received95
Meet the Quality---90
Account for 90 units only
=====================================================================================================================================================
MATCHING
========
2 WAY MATCHING
---------------
Matching the Invoice with the Purchase Order
1. Matching Inv Rate with PO Rate
2. Matching Inv Qty with PO Qty
3 WAY MATCHING
---------------
--
Matching the Invoice with both PO and Receipt
1. Matching Inv Rate with PO Rate
2. Matching Inv Qty with PO Qty
3. Matching Inv Qty with Receipt Qty
PO---100
Invoice--95
Received-90
4 WAY MATCHING
------------------
MAtching with Invoice, Receipt and Acceptance Report
1. Matching Inv Rate with PO Rate
2. Matching Inv Qty with PO Qty
3. Matching Inv Qty with Receipt Qty
4. MAtching Inv Qty with Accepted Qty
PO-100
Inv-95
Recd-90
Accepted-85
=================================================================
PAYABLES SET UPS
1. Defining the Financial Options
(N) : Setup > Options > Financials
2. Defining the Supplier Options
3. Payables Option
* Accounting Options
At the time of payment--
Dr......AP/Invoice AP Accrual
Cr.....Cash Clearing a/c
At the time of Clearing----
Dr ...Cash clearing a/c
Cr.....Cash a/c
4. Defining Payment Terms
(N): Setup> Invoice> Payment Terms
3 Types of Payment Terms:
* Fixed
*Day's Basis
* Proxima Term
DAYS' BASIS
2/10 Net30
3/15 Net 45
Immediate
Net 15
Net 30
Net 45
PROXIMA TERM
Cut off Day--1st day of the cycle
Credit card bills:
Date on which the bill is generated
Cycle: 10th of the month to 9th of the following month
Due date---20th of the month
10/8/2010..........10/7/2010 to 9/8/2010.....23/8/2010
10/9/2010..........10/8/2010 to 9/9/2010......23/9/2010
10/10/2010.........10/9/2010 to 9/10/2010....23/10/2010
======================================================================================
4. Distribution Sets
Full Type
Skeleton Type
Full type: same code combination, same percentage/ proportion of invoice amount
-------------------------------------------------------------------------------
Raw Mat Inv1(75/20/5)
Raw material cost............75%
Taxes........................20%
Freight......................5%
Entered Invoice-1001.....Inv value 10000........................Raw Mat Inv
Defining:
Distribution:
Raw MAt cost........7500
Taxes...............2000
Freight..............500
-------------------------------
Rent Invoice
Rent Distn set:
01.100.5100..........10%
01.120.5100..........25%
01.150.5100..........30%
01.200.5100..........20%
01.300.5100..........15%
Actually Entering:
Enter a Rent Invoice------100000..............Rent Invoice Distn Set
Distribution :
01.100.5100..........10,000
01.120.5100..........25,000
01.150.5100..........30,000
01.200.5100..........20,000
01.300.5100..........15,000
Skeleton Type
-------------
same code combination, but proportion not known
Rent Invoice -Skeleton
Rent Distn set:
01.100.5100
01.120.5100
01.150.5100
01.200.5100
01.300.5100
======================================================================================
Defining Suppliers
(N): Suppliers > Entry
Suppliers--------Company
Multple
MULTI ORG AND MOAC
==================
1. Define the following responsibilities:
***SA HRMS
***SA Inventory
Assign the Resps to the User
2. Define the Profile Options for
*** SA HRMS
HR: Security Profile......................SA Business Group
HR: Business Group........................SA Business Group
HR: User Type..............................HR User
***SA Inventory
MO: Security Profile....................SA Business Group
HR: Security Profile....................SA Business Group
HR: Business Group......................SA Business Group
3.
DEfine the Multi Org Structure
--------------------------------------------------------------------------------------------------------
Business Group.................SA Business Group.........already defined........from the HRMS resp earlier
Legal Entity...................SA Legal Entity............already defined.........while defining ledger
Ledger.........................SA Primary Ledger..........already defined
Operating Unit.................Define one more Operating Unit....we added one more Operating Unit...Accounting Setup Manager
---------------------------------------------------------------------------------------------------------
Inventory Organization..........SA Inventory Organization
Switch Resp: SA Inventory
(N):Inv : Setup> Organizations> Organizations
4.
MOAC--Multi Organization Access Control
Step 1
Define Hierarchy:
(N):SA HRMS: Work Structures>Organization > Hierarchy
Name
Version
Save and close
Query
Choose the subordinates
Step 2:
We define the MOAC Security Profile
(N): SA HRMS: SEcurity> Profile
Step 3:
Run the Security List Maintenance Report
(N) : SA HRMS: Processes & Reports> Submit Processes & Reports
Step 4:
Define the Payables Responsibility
step 5:
Assign the Resp to the user
Step 6:
Choose the Profile Options for your Payables Resp
Sys Administrator :
MO: Security Profile.............> SA MOAC
HR: Security Profile.............> SA Business Group
HR: Business Group..............> SA Business Group
========================================================================================================================================================
PAYABLES SETUPS
----------------
1. OPTIONS
a)FINANCIALS OPTIONS
(N): Setup > Options> Financials
b)Payables System Setuo
c) Payables Option
----------------------------------------------------------------------
2140 Inventory AP Accrual Yes Yes Liability
3150 Purchase Price Variance Yes Yes Expense
3160 Invoice Price Variance Yes Yes Expense
1415 Deferred COGs Yes Yes Assets
5101 Cost of Goods Sold Yes Yes Expense
-------------------------------------------------------------------
2. Defining Payment terms
(N): Setup> Invoice> Payment Terms
3. Defining Distribution Sets
(N): SEtup> Invoice> Distribution Sets
4. Entering Suppliers
(N) : Suppliers > Entry
===============================================================================================================================
Open the 1st period:
(N): Accounting > Control Payables Periods
====================================================================================================================
TRANSACTIONS:
(N): Invoices > Entry> Invoices
i) Entering Invoices with manual distributions
Items
Taxes
Other charges
Freight
ii) Entering Invoices with Distribution Sets
-----------------------------------------------------------------------
Types of Invoices:
Standard---normal Trade Invoices which can be entered without matching
Credit Memo- is a negative invoice that we receive from our Suppliers
Debit Memo- is a negative invoice that we send to the supplier
Prepayment---Pay an advance to the supplier which can be adjusted against future Invoices
============================================================================================================
DEfining Recurring Invoices:
Step 1: Define a Special Calendar
(N): Setup > Calendar > Special Calendar
Step 2: Open all the periods in your Payables Calendar
(N) : Accounting > Control Payables Periods
Step 3 : Define the REcurring Invoice
(N): Invoices> Entry> Recurring Invoices
Step 4 : Query all the Invoices from the Invoice Workbench
(N): Invoices> Entry > Invoices
Step 5 : Follow the processses
ENTERING VALUES
Realized Gains ------7830.........Expenses
REalized Losses-----7840..........Expense
Tax ----------------2520..........Liab
Cross Currency Rounding 7826.....Exp
Miscellaneous.........5512........Exp\
Material..............1200
---------------------------------------------------------------------------------------------
PAYABLES CONTD:
----------------
ENTERING invoices
1. Entering Invoices with Manual Distribution
*Enter Invoice Header
*Enter the Lines
*Enter the Distn
*Save
* Validation
*Accounting
2.Entering Invoices with Distribution Sets
a) Full Type
b) Skeleton
3.Debit Memo/Credit Memo
4. Recurring Invoice--complete the process after querying in the resp periods/months
-----------------------------------------------------------------------------------------------------
5. EXPENSE REPORT
a) Create an Employee
HRMS: People > Enter and Maintain
b) Define an Expense Report Template
Payables: Setup > Invoice > Expense Report Template
c) Run the Expense Report Export Program
d) Query the Expense Report , Complete the steps for the Invoice
============================================================================================================
RECEIVABLES
============
ORDER TO CASH CYCLE
Order Management
Receivables
Cash Managemnet
General Ledger
* Entering Invoices---Automatically generated based on Sales Orders in Order Management Module
* Enter details of Customers
*Receipts and Remittances
-----------------------------------------------------------------------
Receipts--Instruments / Modes of payment in seetlement of the Invoices
Remittance---sending to the Bank for clearance and credit
---------------------------------------------------------------------------
Order to Cash Cycle:
(Order Management) Entering Sales Order.....> Book Sales Order ...> Picking & Staging ....> Shipping...> Run the Workflow Background Engine...>
(Receivables) Entering Transactions...> REceipts....> Remittances...> Clearing of Transactions > Reconciliation...> Transfer to GL
Qty
Rate
Dates
Ship-to details
---------------------------------------------------------------------------------------------------------------------------------------------------
1. DEfining the Receivables REsponsibility
2. Assign to the User
3. Choose the Profile Options for Receivables
MO: Security Profile
HR: Security Profile
HR: Business Group
4. Switch Responsibility
5. Login to REceivables Resp
6. Systems Options
Setup> System> System Options
7.Payment Term
Will always apply to the customers
(N): Setup> Transactions> Payment Terms
Invoice
--------
Line 1
Line 2
Line 3
Line 4
:
:
:
----------
Lines Total...........10000
Misc Chgs...............2000
-----------
Subtotal..............12000
Freight.................500
Subtotal.................12500
Tax.....................1250
-------------
Invoice Total
Lines Total + Tax=---10000+10%---11000
Discount amt---on 11000---
---------------------------------------------------------------------------------
CUSTOMER PROFILE CLASS
-----------------------
* volume of business
* Credit profile
* Payment Term
Excellent
Good
Average
Group 1----45 days paymt term
Group 2----30 days
Group 3----15 days
Group 4----Immediate
(N) : Customers > Profile Classes
Step 1 : DEfine the Payment Term
Step 2: Statement Cycles
Step 3: Auto Cash Rule Set
Setup > Receipts > Autocash Rule Sets
Autocash rule sets are a set of rules which specifies the order in which the amounts received can be applied to overdue invoices..
Customer--1..............Payment term 30 days
Inv 101....dt 1-08-10.....................25000.......-(20000.)......5000..0
Inv 302....dt 20-8-10.....................30000.........(30000)......0
Inv 567....dt 15-9-10....................100000.....................0
---------------------------------------------------------
Inv 734...dt 2-10-10....................50000....................0
Inv 800...dt...15-10-10....................10000...............0
-----------------------------------------------------------
Credit Balance ......................................................(5000)
1Receipt...20000
2 Receipt...30000
3 REceipt ...170000
Rule 1--Match with Invoice
Rule 2--Oldest Invoice First
Open Balance= Invoice Amount-Discount-Amount Received+ Finance Charges
Please enter these values
Miscellaneous Revenue................4150..........Revenue
Receivables Factoring/Remittance......1245.........Assets
Unapplied Cash .......................1240.........Assets
Unbilled Receivables..................1232.........Assets
Tax payable............................2520.........Liabilities
Freight ...............................7220.........Expenses
Bank Charges............................7870........Expenses
Autoaccounting Clearing.................1222........Assets
Unearned Revenue........................2550........Liablities
===================================================================================================
PAYABLES
=========
PAYMENT ADMINISTRATOR SET UPS
=============================
1. Define a Payment Format
N: Setup > Payment> Payment Administrator> Payment Format
2. DEfine the Payment Method
N: Setup > Payment> Payment Administrator> Payment Method
3. Define the Payment DEfaulting Rules
4. DEfine Payment Process Profiles
---------------------------------------------------------------------------------------------------------------------
DEFINING BANKS
===============
Step 1: Defining Banks
Payables: Setup > Payment > Banks and Bank Branches
Step 2 : DEfining Bank Branches
Step 3: Give Access to the Bank Account --Legal Entity
==================================================
USER MANAGEMENT RESPONSIBILITY USING THE SYSADMIN LOGIN
---------------------------------------------------------
1. Login to User Management REsp
2.Choose Roles and Role Inheritance
3.Create a Role
===============
Code
NAme
Name of Application
Date
Save
Apply
4. SEarch for you role
5.Run Security Wizard
6. Choose the Legal Entity
7. Grant Access to you Legal Entity
====================================
8. Apply
9.Assign to the User
Step 4: DEfine the Bank Accounts
N: Setup > Payment > Bank Accounts
Owner Access----Legal Entity
Organization Access---Name of your OU
====================================================================
SETUPS RELATED TO PAYMENTS IN PAYABLES MODULE
------------------------------------------------
1. Define Payment Documents
Setup > Payment > Bank Accounts
========================================================================================================================
ENTER PAYMENTS
===============
1. N: Payments> Entry> Payments
========================================================================================
RECEIVABLES SET UPS
====================
1. Enter Customers
N :Customers> Customers
DEfine Customers
.......Account
.......Site DEtails
Save and add details to update Account information
click Apply to update Customer Information
2. Defining the Transaction Types
N: Setup> Transactions>Types
-Invoices
-DEbit Memo
-Credit Memo
-Chargeback
Old Invoice-no.101 dt 15-08-10 for 50000
Amt recd on 28-10-10 ---40000
Closing the old invoice
==================================
Chargeback to this invoice...
Invoice No,205 dt 28-10-10 for 10000 ---2/10 Net 30
Apply Chargeback to an OPen Invoice
COMMITMENT----
---Deposit-----yOU rec advance
---Guarantee--receive a legal doc
=================================================
WHILE DEFINING TRANSACTION TYPES START WITH THE CREDIT MEMO
==========================================
3. Defining the Memo Lines
N: Setup>Transactions > Memo Lines
4. DEfining Auto CAsh Rule Set
5. DEfining Application Rule Sets
N: Setup > Receipts > Application Rule Sets
Invoice-21
-------
Line 1...............................1000
Line 2...............................7000
Line 3...............................8000
Line 4..............................4000
Total ...............................20000
Other Charges..........................3000
Freight.................................1000
Tax......................................1000
G Total..................................25000
Received -----22000
Auto Cash Rule SEt...............applied while choosing the Invoice
App Rule Set......................applied at the time of partial receipt of amount and applied against components of the Invoices
6.Defining Receipt Classes
N: Setup > Receipts > Receipt Classes
DEfine REceipt classes
Define REceipt Methods
Link to Bank A/c
Enter the Code combinations
7. DEfining Receivable Activities
-----------------------------------------------------------------
BEFORE ENTERING TRANSACTIONS OPEN THE RECEIVABLES PERIODS
N: Control > Accounting > Open/Close Periods
8. ENTERING TRANSACTIONS
N: Transactions > Transactions
9. Enter Receipts
N : Receipts > Receipts
1.
N) Setup>Financials>Accounting Setup Manager>Accounting Setups
1. Define Legal Entity
2. Primary Ledger
3.Secondary Ledger
4.Accounting Options
5. Operating units
6. Sequencing
Material-SEcondary Ledger
Balancing Segment Value:
4 Legal Entities:
LE1-------01-04
LE2-------10-20
LE3------30-40
LE4-----50-60
Balancing segment Values
=====================================
Switch responsibility> Global HRMS
(N): Workstructures> Organization> Description
=======================================================================================================================
2.Define GL REsponsibility
3. Assign to User
4.. Choose Profile Options
5. Open the 1st period
(N): Setup > Open/ Close
===========================================================================
TRANSACTIONS
1. Entering Journals:
(N) : Journals>Enter
=========================================
Finding Journals
Journals>Enter> (B) Find
===============================================
Posting
Journals>Post
Journals> Enter >(B) Post
======================================
Inquiry of Balances
(N): Inquiry> Account
=======================================
Roll up Groups:
1st Step: Define Parent and Child Values
Example:
Assets: Total Assets> Fixed Assets,Current Assets > REcei
2nd Step: DEfine the Roll up Groups
Setup> Financials>Flexfields> Key> Groups
3rd Step:
Linking the Parent values with the Groups
ROLL UP GROUPS ARE USED TO CREATE THE SUMMARY ACCOUNTS
====================================================
SUMMARY ACCOUNTS:
These are used to inquire the balances of parent values online.
1st step:
(N): Setup > Accounts> Summary
2nd step: Make entries
3rd step: Inquiry> Account
=============================================================
ACCOUNT ALIASES
Short names for Account Code Combinations
01.000.1110-----> Cash 1----Cash of Company 1
01.350.4110------> Sales 1-Sales of company 1
Step 1:
(N): Setup> Financials> Flexfields> Key> Aliases
Enter the names and the details
Step 2: Recompile
Setup> Financials>Flexfields> Key> Segments
Step 3:
Entering Journals with Aliases
=====================================================================
FOREIGN CURRENCY JOURNAL
Defining Foreign Currencies:
Corporate
Daily
Spot
User
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