Accounting formats

July 26, 2015 in General Ledger,System Manager

Purpose

This routine is used to establish the essential settings for the Financial system including the length of the Chart of Account, Branch and Division codes to be used in the General Ledger, and other related settings. The settings established here are global across all suites/modules throughout the entire Online Advantage system.

If a format has already been established then a warning message is displayed. Unless specified otherwise, the changing of these settings once transactions have commenced WILL CAUSE SERIOUS DAMAGE to the accuracy of the accounting information within Online Advantage. Unless under direction from your Online Advantage support organisation, DO NOT ADJUST THESE SETTINGS after they have been established and transactions have already been processed.

Data Input

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Step 1 – Account Format

The General Ledger Accounting formats are used globally across Online Advantage. They must be defined in each Online Advantage system before transactions can commence. Up to 10 wholly numeric characters can be used in total i.e. the total length of the GL Account code should be 10 characters which includes the Chart of Account, the Branch and the Division code.

Warning: Changing these formats once transaction processing has begun will result in serious damage to the accuracy and completeness of the financial data held in your Online Advantage system.

Length of Chart of Account Code

Enter the length of the General Ledger Chart of Account, which will be used globally.
This entry has to be wholly numeric and greater then zero.

Length of Branch Code

Enter the length of the Branch code, which will be used globally. This entry has to be wholly numeric and greater than zero. This setting includes the Branch code used in the Accounts Payable, Accounts Receivable and Inventory modules.

Length of Division Code

Enter the length of the Division code, which will be used globally. This entry has to be wholly numeric and greater than zero. Note this includes the Division code used in the Accounts Payable, Accounts Receivable and Inventory modules.
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Step 2 – Account Options

There are several important settings below that can have a dramatic affect on the way Online accumulates and posts Sales figures. Once the system has begun posting to the General Ledger and recording values in the Sales Analysis system changing these settings will NOT change any previous postings/sales analysis information retrospectively.

Sales Branch

The selection here determines whether the Branch from the Customer or from the Stock Location the stock is sold from will be used for sales postings to the General Ledger. The choice made here will have a big impact on the GL Sales postings made by the system. For instance, if the “Customer” option is selected, when a sales is made to a Customer in a Branch e.g. Sydney but the goods are delivered from a Stock Location in a different Branch e.g. Melbourne the system will post the Sales to the Sydney Branch, but in order to do that, OA will automatically perform a stock transfer of the goods from the Melbourne Branch to the Sydney Branch in order to “move” the Cost of Goods Sold (COGS) value into the Sydney Inventory Ledger and GL Balance sheet prior to processing the Sales and COGS transactions.

Sales Division

The selection here determines whether the Division from the Customer or from the Product Group will be used for sales postings to the General Ledger. As with the selection for Branch postings, your choice of Division posting being either Customer or Product based can have a dramatic affect on the usefulness of the Divisional P&L reporting from the GL module.

Sales Budget Branch

The selection here determines whether the Branch from the Customer or Product Group or the Sales Rep will be used when posting actual and budget values to the Sales and Sales Budgets files. The choice made will be used by the Sales Analysis system to populate the sales files with figures based on how to determine the Branch.

Do not split Ledger by Branch at EOM

When this option is selected, the EOM routines do not split the ledger GL balance by branch and create branch splitting reversing journals.
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Step 3 – Sort Options

Sort Chart of Accounts by

Select to sort the Chart of Account by code or name. The sort sequence applies to all General Ledger reports containing Chart of Account details. This option can be changed throughout the use of Online Advantage. General Ledger reports will sort by General Ledger Category and then by code or name (as selected here).

Sort GL Detail report by

Select to sort the Detailed General Ledger report by Chart of Account Code or by General Ledger Category. Note: the report (and its sort sequence) are cached, so changing the sort sequence here may not have immediate effect depending on whether the report has been run recently or not.

Sort Suppliers by

Select to sort Suppliers by code, name or sort key. The sort sequence applies to all Creditors reports containing Creditor details. This option can be changed throughout the use of Online Advantage.

Secondary Sort (if Sorting by Sort Key)

Select to sort Suppliers by code or name, as a secondary sort, if the “sort key” option is selected as the primary sort.

Sort Customers by

Select to sort Customers by code, name or sort key. The sort sequence applies to all Customers reports containing Customer details. This option can be changed throughout the use of Online Advantage.

Secondary Sort (if Sorting by Sort Key)

Select to sort Customers by code or name, as a secondary sort, if the “sort key” option is selected as the primary sort.
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Step 4 – Alternate Structures

When establishing the General Ledger format in Online Advantage, you allocate a Category to each Chart of Account as part of creating the Chart. The set up of the GL Categories defines a report structure used in all General Ledger “standard” Financial Reports. In Online you can also establish up to 3 alternate GL Category report structures besides the default (Standard) structure if required. When running Financial Reports you can then choose which reporting structure to use. At this step, you are simply defining a name for each alternate structure. Alternate Structures were introduced in the 9.4 release. More details here.

Default

Enter default Account Structure name. E.g. “Standard”

Alternate 1

Enter alternate Account Structure name, if required. E.g. “Management”

Alternate 2

Enter alternate Account Structure name, if required. E.g. “Board”

Alternate 3

Enter alternate Account Structure name, if required. E.g. “Press Release”
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