Using Accounting

The Salesorder accounting system is reliably working for companies across four continents with different business models, in different markets with different accounting and tax requirements.

Salesorder accounting systems is multicurrency, tax agnostic, versatile and designed for automation.

 

Multicurrency, Tax Agnostic General Ledger

The system has a comprehensive set of functions that can be configured to implement and manage accounting processes to a clear and accurate standard.

These functions pivot on the general ledger, which is multicurrency, tax agnostic and has a full audit trail.

Key functions are:

  • Chart of Accounts
  • Financial Reporting
  • Nominal codes
  • Configurable GL Accounts
  • Configurable accounting on transactions
  • Credit control on transactions
  • Bank reconciliation
  • Configurable period closure

The system supports up to four decimal places.

Cost of Goods Method

The system uses the Average Cost method. Costs are assigned to inventory Items based on the total cost of goods purchased or produced in a period divided by the total number of items purchased or produced.

The average cost method is also known as the weighted-average method.

Tax Automation

Tax functions are explained in Using Sales Tax and Using VAT

Taxjar integration is supported. TaxJar is a tool to automate the recording, reporting and filing of Tax. See Using TaxJar Tax automation.

1099 Reporting

1099 categorization and reporting for Suppliers is supported by the system.

You can set the 1099 status on the Supplier’s profile tab. A 1099 summary and detailed report can be found in the Standard Reports section.

Chart of Accounts

The chart of accounts is an adaptable listing of all accounts used in the general ledger. The system uses the accounts in the chart to organize and aggregate posting transactions for reporting to GAAP standards.

To access Chart of Accounts, go to:

ACCOUNTING > Chart of Accounts

 

Setup Accounting Configuration

This is a foundational step in the set up of your system. You should review ALL of these settings before you commence any accounting workflows.

 

General Settings

Current Status Indicates the closed/open status of the Accounts.
Display Nominal Codes Displays the nominal codes in the Chart of Accounts List and Reports.
Include all account types in Expense Selection This control exposes the entire chart of accounts in the Expense selection list on ALL Documents. Extreme caution is advised.
Enable Document history/audit trail Every Document has an Action > Show History. It is advisable this option is checked. See Using Document history.

Numerical Formats

Here you can set the format for numbers and number of decimal places. The system will support up to four decimal places.

Discount Calculations

This setting affects all Documents where the discount column is displayed and used.

The settings are:

  • Use Total Pre-Tax amount (default)
  • Use Unit Price/Cost

Default Accounts

This is the minimum set of accounts the system needs to operate. This contains default account for key functions:

  • Stock adjustments
  • Pending item receipts
  • Currency gains and losses
  • Customer and supplier payment discounts

To configure the accounts, go to:

SETUP > Configuration > Accounting Section > Accounts (Setup default accounts)

Financial Reporting

The following reports can be run from REPORTS > Standard Reports > + Accounting

  • Profit and Loss
  • Balance Sheet
  • Statement of Cash Flows
  • Cashflow Forecast
  • Trial Balance
  • Account Entries
  • Transaction Journal
  • General Ledger

Nominal Codes

Accounts can be assigned a nominal code (account number). These  are usually numeric, but can also be alphabetic or alphanumeric.

To display nominal codes, go to :

SETUP > Configuration > Accounting section > Accounts > General section > Display nominal codes

Nominal codes can be manually added or imported.

To configure nominal codes manually, go to:

ACCOUNTING > Chart of Accounts > + (new account) > Select an Account type > Nominal Code

To import nominal codes, go to:

SETUP > Import data > Accounts

Configurable GL Accounts

Users can set account types (income, asset, etc) and configure control and sub-account (parent-child) relationships within the chart of accounts. Each account can be assigned a:

  • Cash flow category (operating, finance, investment)
  • 1099 category
  • Classification – an arbitrary class for building reports
  • Currency – Balance sheet accounts only

Expense accounts can be selected to display on Expense claims and defined as reimbursable. See Using Expense Claims.

Accounts can be manually added or imported .

To configure an account manually, go to:

ACCOUNTING > Chart of Accounts > + (new account)

To import an account, go to:

SETUP > Import data > Accounts

Configure Item Accounting

Users can configure Items (i.e. SKUs) to post to specific general ledger accounts when transactions (i.e. Sales Invoices) are posted.

Credit Control on Transactions

The system has four functions to support credit policies:

  1. Payment terms
  2. Credit control automation
  3. Early payment discount
  4. Aging debtors analysis

1. Payment terms

Users can set payment term parameters, specifically:

  • Term name
  • Due in a specified period

To configure payment terms, go to:

ACCOUNTING > Payment Terms > + (new payment term)

 

2. Credit control automation

Users can set customer credit control parameters to automate credit checks specifically:

  • Use Credit Limit (set on the Customer master, ‘Credit Limit’)
  • Use Invoices past due

To set automated credit checks, go to:

SALES > Customers > Choose a Customer > View Customer Configuration > Configure > Credit Control > Automated credit checks

Users can specify rules to place customers on hold, specifically:

  • Allow nothing (no new transactions)
  • Allow pending Sales Orders
  • Allow Cash Sales (sales receipts)
  • Allow pending Sales Orders and Cash Sales (sales receipts)

To place customers on hold, go to:

SALES > Customers >  Select a Customer > View Customer Configuration > Configure > Credit Control > Customer on hold

Administrators can set permissions on user ‘Roles’ to override credit controls.

To set permissions, go to:

SETUP > Roles > Select a Role > View Role Configuration > Permissions tab > Customers

3. Early payment discount

Users can set parameters to specify when discounts are applied specifically:

  • Discount within n Days
  • Discount %

To set early payment discount, go to:

ACCOUNTING > Payment Terms > +(new payment term) > Early payment discount

4. Aging debtors analysis

Users can review outstanding receivables.

To review aging debtors, go to:

REPORTS > Standard Reports > + Customers > Sales Invoice Aging

Bank Reconciliation

Users can select a Bank Account and perform reconciliations aligned with statement dates for financial periods.

To perform reconciliations, go to:

BANKING > Select a Bank Account > View Bank Account > Actions > Reconcile

Check Printing

Configurable Period Closure

Period closure on accounts can be done in these configurations:

  1. Disallow editing or new transactions prior to the close date.
  2. Allow journals to be posted prior to the close date and up to a specified date in the future.

Go to: SETUP > Configuration > Accounting Section > Accounts > Actions > Close Accounts

Users can set a Close date so that the system records the date upon which the accounts were last closed.

Closed by User
Date The date this close was committed.
Close Date Closed up to
Open Until Open up to
Allow Journals Check this option to allow journal entries for a previously closed period.
Comments Notes to self 🙂
Reconcile Action to commit this transacton

To review the Accounts closure history, go to:

SETUP > Configuration > Accounting Section > Accounts > Find > Accounts Closure History

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