Compiere Training Accounting Tax Performance Analysis May04 Accounting

Compiere Training Accounting, Tax Performance Analysis May-04 Accounting 1

Show Accounting Agenda n n n n Tools > Preference Role Security Performance Analysis Information Dimensions Calendar & Periods Accounting Schema Charge Tax Accounting Details May-04 Accounting 2

Performance Analysis May-04 Accounting 3

Terminology May-04 Accounting 4

Information Dimensions n Organization n n n n Natural Accounting Schema Product Elements Business Partner (Segments) Project Marketing Campaign Location (Warehouse, Business Partner) n n n Owning (balance sheet) Transacting (executing or service center) From - To Activity (Activity Based Costing) User Defined (2) May-04 Accounting 5

Principles n Accounting entry at the lowest level n n Element Values derived from Transaction n (Accounting Fact) Any Accumulation Trees for Summary & Navigation Directly (entered) Derived Differentiate Document from Accounting Consequence n May-04 Multiple Accounting Schema Accounting 6

Dimensions Tree Conversion May-04 Accounting 7

Tree Characteristics n n You can post only to Leaf Level You can report on Summary and Leaf Level You can change Structure any time “HQ Operations” n Extra Leaf / Summary required n n Different Modeling Options n May-04 E. g. Differentiate “Direct Sales” level transactions from individual Stores Dependent what you want to report on Accounting 8

Dimension Tree Alternative May-04 Accounting 9

Calendar & Period n Two Dates n n n Document Date Accounting Date Calendar & Period only for control & reporting purposes n n No End Period processes Period can be automatically opened n n May-04 You cannot post in closed periods – Change accounting date (or re-open) Controlling Calendar defined on Client Level Accounting 10

Account Element n Type n n Natural Account User defined One (or more) Trees for Reporting Values n n May-04 Account Type & Sign Posting Type (Actual – Budget – Stat) Accounting 11

Accounting Schema n From “traditional CCC” to n n n May-04 Chart-Of-Account (Natural Account) Currency (Not Calendar) Costing Method GAAP* Selection of Elements Accounting 12

Multiple Accounting Schema n Parallel Accounting of Documents n n No need to derive one from the other Differentiate between n Legal/Tax Accounting n n n Document Multiple Countries Management Accounting Consequence Currency Translation not correct May-04 Accounting 13

Account Schema Elements n n Information Dimensions Balanced n Postings to this Element must be balanced n n Mandatory n With every transaction you have to define n n E. g. Organization, Natural Account Default Value May-04 Accounting 14

Accounting Schema Changes n Change Structure any time n n Change Values any time n n Add/Change/Delete Elements Overwrites old ones! Change Hierarchy any time n Reporting Hierarchy of Elements n n Org, Account, BPartner, Product, Project, etc. Merge Element Entries any time n May-04 Organization, BPartner (User), Product Accounting 15

Accounting Defaults n Default Hierarchy n Accounting Schema n BP Group, Product Category, . . n n Account Combination n Business Partner, Product, . . Combination of Element Values Org – Natural Account –. . . Posting adds Document Context Values to Account Defaults n May-04 E. g. Invoice automatically adds Business Partner Accounting 16

Account Combination Default Account Org Account Project BPartner Product 02 1600 Building _ _ Document Posted Account (dynamically created) May-04 Org Account Project BPartner Product 01 1600 Building Joe Flowers Accounting 17

Posting n Posted in Background or Explicit n n Reset Accounting n n n When document is processed For specific/all Document Table Allows to correct wrong default accounts Resubmit Posting n After correcting cause for Posting error n May-04 E. g. Open Period Accounting 18

Account Info (View) n View Accounting n n For Document For Enabled Account Element Value n n Optional Account Date Range Optional Sorting n May-04 Grouping Accounting 19

GL Category n n Traditional GL Reporting Sources n n May-04 Derived from Document Type Manually Entered Accounting 20

Document Sequence n Unique numbering of documents n n n Gap-less Optional Prefix/Suffix Assigned via Document Type May-04 Accounting 21

Charge n The Link (“Alias”) between n (Multiple) Chart-of-Accounts n n Attributes n n n Natural Account (Account Combination) Option to distinguish Dr/Cr Posting Tax Category & Tax Inclusive Handling* Creation n n May-04 Manually Generate Charges from Natural Accounting 22

Tax Overview May-04 Accounting 23

Tax n Tax Category n n API* for Tax Vendors n n Link to Product (Commodity Code) Commodity – Invoice/Ship – From/To Maintain Tax Rate n n May-04 Invoice From/To For simple tax situations Accounting 24

Multiple Tax Rates n More than one tax rate on the same net amount n n n 100. 00 5. 00 4. 00 If “Tax on Tax” calculate rate as if from net Enter % for Summary Level n n Line Tax 1 (5%) Tax 2 (4%) Summary (9%) 9. 00 Summary Level used while entering data Correct Taxes calculated when Processed May-04 Accounting 25

Tax Issues n Tax Calculation n On Header n n Total Amount per Tax * Rate Tax Inclusive n n The Amount includes all taxes Define in n n May-04 Price List Charge* Accounting 26

Budgeting n n Define Budget & Status Enter Budget n n n Journal Entry Post to Budget Report May-04 Accounting 27

Planned Functionality n Automatic GL Distribution* n You define Source – e. g. 01 -1200 n n n Multiple Targets – e. g. 50% - 01 -2500 Recursive Use Currency Revaluation* Allocations* Alerts* Cockpit* May-04 Accounting 28

Accounting Details Optional Material May-04 Accounting 29

Details: No Sub-Ledger n Traditional Systems n n n Sub-Ledger Documents create GL Journals are posted Compiere n All Documents are directly posted n n Simulating a Sub-Ledger n n GL Category defined in Document Type Create “Sub Ledger” Reports based on GL Category Creating Sub-Ledgers (Customization) n Create Accounting Trx Exports for other Client n May-04 With the desired level of Summarization Accounting 30

Detail: Balancing n n Defined per Accounting Schema Source Amount Balancing n n n Segment / Element Balancing n n If Suspense Balancing enabled Post to Suspense Acct – Otherwise fail Implemented for Organization (Due To/From) Accounting Amount Balancing n With Currency Balancing n n Without Currency Balancing n May-04 Difference posted to Currency Balancing Account Difference added to biggest Balance Sheet Account Amount Accounting 31

Details: Reverse (Correction) n Differentiate between n Motivation: Correct Account Debit / Credit Sum n n n Account 1 Account 2 Dr 50 Reverse n n n E. g. Differentiate between Invoice Correction and Voiding Invoice Example - Original Trx n n Reversals (Accruals) Correction “Undo” Account 1 Account 2 Reverse Correction n n May-04 Account 1 Account 2 Dr 50 Dr -50 Cr -50 Accounting Trx Reverse 50 50 50 Reverse Correction Trx 50 Reverse -50 0 0 32

Details: Invoice Allocation n Payment n n n Dr Cr Per Allocation Transaction n n In Transfer (Bank) Unallocated Receipts Dr Accounts Receivables Write-Off Payment Discount Cr Cr Cr View Allocations in “Reverse Allocation” May-04 Accounting 33

Details: Realized Gain & Loss n Created when posting Invoice Allocation n Difference between converted n n (Partial) AR/AP Amount Allocation Amount n n Accounts Receivables Realized Gain Dr 22 Conversion Rate on Allocation Trx Date n n May-04 E. g. Is Payment Date when 1: 1 with Payment Manual Allocation Date defaults to Login Date Accounting 34

Details: Tax Correction n Enabled in Accounting Schema n n If you have to pay tax only on the actually received (not invoiced) Amount – VAT Example n n n Lines $100 + Tax 1 $15 + Tax 2 $5 = Total $120 Payment of $115 ($5 Payment Discount or Write-Off) Tax 1 Correction = $0. 63 (15/120*5) Tax 2 Correction = $0. 21 (5/120*5) Journal Entries (e. g. Sales Trx) n n n May-04 Discount Tax 1 Tax 2 Cr 0. 84 Dr 0. 63 Dr 0. 21 Accounting 35

Details: Document Action May-04 Accounting 36

Hands-on n n Check / Post Document Enter manual Journal May-04 Accounting 37