Purpose
This function is used to set up and change the calendars used by the various ledgers in Online Advantage as well as the parameters for Debtors Ageing and related functions on the Debtors Ledger.
The starting dates for the Fiscal Calendars for each ledger should be discussed with your Online Advantage Implementation Consultant or software support organisation in detail before deciding what period to start each ledger in. However the usual starting values relate to the month end date for which your first transactions will be entered. Usually your next End of Month date. This however may change due to your method of data take-up and when you plan to be inputting live transactions into each ledger.
Data Input
Step 1 – Calendar
Displays all calendars currently set up.
The fiscal month and month end date will ‘roll’ to the next period when an End of Month procedure is run. It is not necessary to roll the month for all ledgers at the same time, however one ledger cannot be more than 1 period ‘ahead’ of another ledger e.g. you could have General Ledger in Period 08, and Debtors/Stock Ledger in Period 09 – but you couldn’t move the Debtors/Stock Ledger to Period 10 without first rolling General Ledger to Period 09.
It is not advisable to change the fiscal period once set up. If you need to change your fiscal year from a Jan-Dec period to Jun-Jul (for example), contact Online Advantage support for advice as there are implications as to how monthly period data is stored in the system.
General Ledger
Enter the Fiscal month number – ranging from 1 to 12 to represent the current fiscal month of the General Ledger. As for Calendar Month date, enter the end date of the Fiscal month number entered.
Asset Ledger
Enter the Fiscal month number – ranging from 1 to 12 to represent the current fiscal month of the Asset Ledger. As for Calendar Month date, enter the end date of the Fiscal month number entered.
Creditors/Accruals
Enter the Fiscal month number – ranging from 1 to 12 to represent the current fiscal month for the Creditors/ Accruals. As for Calendar Month date, enter the end date of the Fiscal month number entered.
Purchase/Stock/Sales
Enter the Fiscal month number – ranging from 1 to 12 to represent the current fiscal month for Purchase/ Stock/ Sales. As for Calendar Month date, enter the end date of the Fiscal month number entered.
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Step 2 – Debtors Ageing
The Debtors module requires additional dates relating to the Age Dates for Debtors statement periods for the Aged Trial Balance that appears on a debtors statement and debtors reports/displays. Effectively the system requires the entry of the last four debtors statement period end dates, in the form of a list in descending order sequence, not including the current debtors period end date. From this the system can show the aging, and if necessary, re-calculate the ageing as required.
Unallocated Credits Ageing Code
Select the desired ‘Ageing’ you want to use for credits. This determines how an unallocated “credit” amount is recorded and displayed on the debtors ledger. An unallocated credit is a transaction with a credit balance i.e. Credit Note, Credit Journal, Cash Receipt transaction, that is not allocated (“Offset”) to one or more ledger transactions (usually invoices) on a debtors account. The available choices are:
- All Unallocated Credits Aged – selecting this options means that the value of unallocated credits will appear in the corresponding ageing period for the transaction date on ageing reports/displays regardless of whether the transaction is a Credit Note, Cash Receipt or Journal
- Credit Notes Only Aged – selecting this option means that only Credit Notes are aged according to ageing period. Cash Receipts and Credit Journals are placed into an ‘unallocated’ ageing bucket
- No Unallocated Credits Aged – selecting this option means the value of any unallocated credits will always be aged in the ‘current’ ageing period into an ‘unallocated’ ageing bucket
NOTE: If you change this setting when you already have unallocated credits on the Debtors Ledger you will need to arrange a reset of your aged balances to be performed by support.
Period Frequency (Days)
Enter the numeric value to be used for ageing of your Accounts Receivable. A value of 30 is used to indicate that ageing is to be performed on a monthly basis. A value of “7” would indicate the use of weekly aging periods on the debtors ledger.
Date – Current Period
Enter the end date for Debtors current ageing period.
Date – Period 1
Enter the end date for Debtors period 1 ageing period.
Date – Period 2
Enter the end date for Debtors period 2 ageing period.
Date – Period 3
Enter the end date for Debtors period 3 ageing period.
Date – Period 4
Enter the end date for Debtors period 4 ageing period.
Age Method
- Month end – invoice ageing is calculated from month end/period end dates for each ageing period as rolled via Debtors Statement close function
- Invoice terms – invoice ageing is calculated on calendar days from invoice date using the customer trading terms days
Step 3 – Interest Charges
Interest Charge Code
If you want to charge interest on overdue balances, select the age period of the balance to apply charges to. Interest is calculated and added to the Debtors ledger during the End of Week/Month Statements run. Note that the following fields are mandatory if an Interest Charge Code has been specified but not relevant if no Interest Charge Code is supplied.
Subtract Unallocated Credits from this amount
Select whether you wish to subtract the unallocated credits from the balance amount. If yes, the interest charge code will be converted accordingly indicating that Unallocated Credits are to be deducted from the specified aged balance prior to the interest being computed.
Interest Charge %
Enter a numeric value (up to 2 decimal places) representing the interest rate to be charged on overdue amounts for the period. Note that the rate applies for each age period. Thus a value of 1.00% would have an effective annual rate of 12% if ageing were done monthly.
Interest Start Value
Enter a numeric to two decimal places. Outstanding overdue amounts below this value will not have interest computed.
Interest Account Code
Enter an existing General Ledger posting Account number that is to be credited for any overdue interest that is calculated when the Debtors Ageing takes place.
Interest Branch Code
Select the branch code that is to be used when interest is calculated and posted to the General Ledger.
Interest Division Code
Select the Division Code that is to be used when interest is calculated and posted to the General Ledger.
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Step 4 – Invoice Ageing Terms
Fixed Invoice Override Terms Description
Enter the description to use for override trading terms that have a fixed ageing date.
Fixed Invoice Date
Enter the date that will be used to age invoices that are flagged as using Fixed Date Override Terms.
Entered Invoice Override Terms Description
Enter the description to use for override trading terms that have a date that can be entered per invoice.
Adjust Ageing by Period Days
Select yes if the Invoice ageing date entered is set to be adjusted by the number of days in a period. If this is set, the actual ageing date will be the date entered less the period frequency. This allows Invoices to go into Period 1 (e.g. 7 days or 30 days) immediately the date is reached, otherwise the invoices go to Current once the date is reached.
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