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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