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.
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.
|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.|
Here you can set the format for numbers and number of decimal places. The system will support up to four decimal places.
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
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)
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
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:
- Payment terms
- Credit control automation
- Early payment discount
- 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
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
Configurable Period Closure
Period closure on accounts can be done in these configurations:
- Disallow editing or new transactions prior to the close date.
- 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.
|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