F200 Financials: Intermediate Training Guide

Transcription

1 F200 Financials: Intermediate Training Guide Acumatica ERP 5.0 Last Revision: 2/23/2015

2 Contents 2 Contents Copyright...4 Introduction... 5 How to Use This Course...6 Part 1: Configuring Branches and Subaccounts...9 Company Story: Related Companies...10 Configuring Companies Lesson 1: Planning and Enabling Features...15 Lesson 2: Planning IDs and Configuring Segmented Keys Lesson 3: Subaccounts Making Corrections to the Configuration of Accounts and Subaccounts Lesson 4: Branches Lesson 5: General Ledger Lesson 6: Balancing Entries for Intercompany Transactions Lesson 7: Cash Accounts Review Questions Part 2: Transactions Across Companies Company Story: Intercompany Transactions Lesson 8: Accounts Payable Documents Lesson 9: Accounts Receivable Documents...43 Lesson 10: Funds Transfers Lesson 11: Consolidated Reports Notes About Analytical Reports (ARM) Review Questions Part 3: Income and Expense Classification by Subaccount Company Story: Subaccounts in Documents...63 Lesson 12: Subaccounts in General Ledger Transactions Lesson 13: Combined Subaccounts in Documents Review Questions Part 4: General Ledger...70 Company Story: Budgets and Allocations Lesson 14: Budgets...72 Lesson 15: Allocations Review Questions Part 5: Cash Management Company Story: Cash Management...94 Lesson 16: Bank Deposits Lesson 17: Unrecognized Payments and Payment Reclassification Lesson 18: Bank Reconciliation Support for OFX and Related Formats Comparison of Transactions by Factors and Match Relevance Calculation...122

3 Contents 3 Review Questions Part 6: Accounts Payable Company Story: Accounts Payable Lesson 19: Payments to Vendors by Using a Corporate Credit Card Lesson 20: Vendor Prices Lesson 21: 1099 Vendors Check Yourself Review Questions Part 7: Accounts Receivable Company Story: Accounts Receivable Lesson 22: Auto-Application of Payments Lesson 23: Customer Prices Lesson 24: Customer Discounts Lesson 25: Customer Payments by Credit Card Configuring the Website for HTTPS Review Questions Part 8: Data Migration Company Story: Data Migration Preparing Import Scenarios Constants and Formulas in Import Scenarios Cross-Check Recommendations for Data Verification Lesson 26: Import of Trial Balances Lesson 27: Import of General Ledger Transactions Lesson 28: Import of Vendors Lesson 29: Import of Open Accounts Payable Documents Lesson 30: Import of Customers Lesson 31: Import of Open Accounts Receivable Documents Lesson 32: Import of Outstanding Checks and Deposits in Transit Review Questions Appendix: Final Configuration Reference Appendix: Demo Data Reference Appendix: Closing Procedure Checklist

4 Copyright 4 Copyright 2015 Acumatica, Inc. ALL RIGHTS RESERVED. No part of this document may be reproduced, copied, or transmitted without the express prior consent of Acumatica, Inc Lake Washington Blvd NE, Suite 100 Kirkland, WA Restricted Rights The product is provided with restricted rights. Use, duplication, or disclosure by the United States Government is subject to restrictions as set forth in the applicable License and Services Agreement and in subparagraph (c)(1)(ii) of the Rights in Technical Data and Computer Software clause at DFARS or subparagraphs (c)(1) and (c)(2) of the Commercial Computer Software-Restricted Rights at 48 CFR , as applicable. Disclaimer Acumatica, Inc. makes no representations or warranties with respect to the contents or use of this document, and specifically disclaims any express or implied warranties of merchantability or fitness for any particular purpose. Further, Acumatica, Inc. reserves the right to revise this document and make changes in its content at any time, without obligation to notify any person or entity of such revisions or changes. Trademarks Acumatica is a registered trademark of Acumatica, Inc. All other product names and services herein are trademarks or service marks of their respective companies. Software Version - 5.0

5 Introduction 5 Introduction This course introduces the advanced functionality of the Acumatica ERP financial modules (General Ledger, Cash Management, Accounts Payable, and Accounts Receivable). In this course, you will set up the financial modules for two related companies (legal entities) based on their organizational structure and the reporting and transaction processing requirements. You will set up automatically balanced intercompany transactions for the companies. Then you will implement the advanced business processes for the companies, including budgeting, reconciling cash accounts, tracking payments to 1099 vendors, and managing customer prices and discounts. The course also describes how you can import data into the system in order to migrate the companies to Acumatica ERP from other systems. The data import includes the import of trial balances or general ledger transactions, import of vendor and customer records, and import of open documents. The course consists of lessons that will guide you step by step through the configuration and use of Acumatica ERP, and data migration. After you complete the course, you will have an understanding of how you can set up Acumatica ERP for financial accounting in related companies, how you can implement advanced processes in the system, and how you can migrate financial data to Acumatica ERP.

6 How to Use This Course 6 How to Use This Course This course is to complete on Acumatica ERP 5.0. For this course, you will use three Acumatica ERP tenant companies with the following data: To complete Part 1, use an out-of-the-box company with no data preloaded. To complete the lessons in Parts 2 through Part 7, use a company with the F200Init data preloaded. To complete Part 8, use a company with the F200TBImported data preloaded. For information on how to add a company with specific data, see How to Create a Company on an Acumatica ERP Instance With the Needed Data. Follow these steps to complete the course: 1. Prepare an Acumatica ERP instance version or greater 5.00.XXXX version. You can add three companies for the course during the deployment of the instance for the training, or you can create one out-of-the-box company at first and then add the other companies to the existing instance later as described in How to Create a Company on an Acumatica ERP Instance With the Needed Data. 2. In the out-of-the-box company, complete the lessons of the Part 1: Configuring Branches and Subaccounts to learn how to set up related companies in Acumatica ERP. 3. Take Certification Test 1: Configuring Related Companies at Acumatica University. 4. In the F200Init company, complete the lessons of the Parts 2 7 one by one to learn the advanced business processes in Acumatica ERP. After completing each part, take the corresponding test at Acumatica University (Certification Tests 2 7). 5. In the F200TBImported company, complete the lessons of the Part 8: Data Migration to learn how to import data into Acumatica ERP. 6. Take Certification Test 8: Data Migration at Acumatica University. After you pass all eight assessment tests, you will get the Acumatica University certificate denoting course completion. What Is in a Part? Each of the eight parts of the course is dedicated to a particular facet of Acumatica ERP functionality and consists of lessons that you are supposed to complete. Each part begins with a Company Story topic that explains the situation in which you are going to use Acumatica ERP in the lessons of this part. What Is in a Lesson? The lessons outline the procedures you are completing and describe the related concepts you are learning. At the end of some lessons, under the Related Links section, you can find links to more information about the concepts and forms that are used in the lesson, and about the related concepts that are outside of the scope of this course. What Are the Documentation Resources? All the links refer to the documentation available on our Partner Portal (login required). The same documentation is included in the Acumatica ERP instance, which you can find under the Help menu, or you can search for help articles in the system (see the screenshot below).

7 How to Use This Course 7 Figure: Search for help articles How to Create a Company on an Acumatica ERP Instance With the Needed Data As mentioned in the list above, after you have completed Part 1 of the course, you will need a company to Acumatica ERP with specific data to use for the next parts of the training. To create a company with the needed data: 1. Open the Acumatica ERP Configuration Wizard and click Perform Application Maintenance. 2. On the Application Maintenance page of the wizard, click the Company Maintenance button. 3. In the SQL Server Authentication dialog that appears, specify the credentials for connecting to the database server and click OK. 4. The Company Setup page opens. To create a new company, click New and select the data to be preloaded in the Insert Data column (see the following screenshot): (no value) - an out-of-the box company F200Init - a company with the F200Init data preloaded F200TBImported - a company with the F200TBImported data preloaded In the same way, you can create the companies with the needed data by adding them on the Company Setup step of the Acumatica ERP Configuration Wizard during the deployment of a new Acumatica ERP instance. 5. Click Next, and on the Confirm Configuration page, click Finish. The system will add a new company to the Acumatica ERP instance and preload the selected data. The first login and password to log in to the new company is admin:setup, then you will be asked to change the password as needed.

8 Figure: Selecting the data to be preloaded to the new company How to Use This Course 8

9 Part 1: Configuring Branches and Subaccounts 9 Part 1: Configuring Branches and Subaccounts In this part of the course, you will learn how to set up companies (legal entities) as branches within a single tenant company of Acumatica ERP. You will configure the system for financial accounting in two related companies, Software Inc. and Computers Inc., which are separate legal entities according to the company story of this training course. You will also configure the companies' cash accounts, and the subaccount segments to categorize expenses and revenue in the reports. As the result of the lessons of this part, you will have the complete configuration of the company branches, their posting ledgers, and the account mapping defined for automatic balancing of the transactions across companies. The lessons of this part should be completed on the empty database (out-of-the-box company).

10 Company Story: Related Companies 10 Company Story: Related Companies In this course, you will implement Acumatica ERP for financial accounting in two related companies: Software Inc. and Computers Inc. The companies are separate legal entities managed by a parent company named ABC Management. (The parent company is outside of the scope of this course). Both companies are located in Los Angeles, in the United States. The Software company has one office, and the Computers company has two offices, eastern and western. The image below illustrates the organizational structure of the companies. Figure: The organization structure of the companies In this part of the course, you need to configure Acumatica ERP for financial accounting in the companies according to their organizational structure and the requirements described in the following sections: Reporting Requirements Transaction Processing Requirements Reporting Requirements The companies provide similar services to their customers and operate independently. According to their structure, the companies present the following reporting requirements: Balance sheet requirements: Each company prepares its own balance sheet. The Computers company does not need to report assets and liabilities by office. The company prepares the total company balance sheet. ABC management requires a consolidated Software and Computers balance sheet. Income statement (profit and loss statement) requirements:

11 Company Story: Related Companies 11 Each company prepares its own income statement. The Computers company needs to report its profit and loss by company office and the company total. ABC management requires a consolidated Software and Computers income statement. The balance sheet requirements of the companies are illustrated in the image below. The Computers company doesn't need to report the assets and liabilities of each office; therefore, the assets and liabilities don't necessarily have to be balanced within each office. The assets and liabilities should be balanced within each company and then summed up in a consolidated report. Figure: The structure of assets and liabilities of the companies Transaction Processing Requirements Although the companies operate individually, the headquarters of the Computers company can process Accounts Payable and Accounts Receivable documents and payments shared between the companies. For example, the Computers company can pay a bill for two companies, or process a customer payment for the services delivered by both companies together during a joint project. This type of intercompany transaction should be balanced on the books of each company so that the companies can individually report their financials. For example, consider the following transaction that should be recorded and balanced on the books of each company. The Computers company processes a $1000 AP bill for a purchase of office equipment for two companies, where $700 is the purchase for the Software company. This intercompany transaction produces the following transactions: On the books of the Computers company: Accounts payable account, Cr $1000 Fixed asset account, Dr $300 Due from Software Inc account, Dr $700 On the books of the Software company: Fixed asset account, Dr $700 Due to Computers Inc account, Cr $700

12 Company Story: Related Companies 12 The last entry makes each transaction balanced on the books of each company that is, the debit total equals the credit total for each company. These entries are the balancing entries of the intercompany transaction, which could be automatically added by the system according to the specified rule account mapping. The Computers company may process a single transaction for two offices at once, such as a single bill for two offices. According to the reporting requirements of the Computers company, such transactions don't necessarily have to be balanced on each office's books because the company uses only a consolidated balance sheet. For example, suppose the headquarters of the Computers company processes a $1000 AP bill for a purchase of office equipment for two offices, where $700 is the purchase for the eastern office. The transaction is recorded on the company's books as follows: Headquarters (western office), Accounts payable account, Cr $1000 Headquarters (western office), Fixed asset account, Dr $300 Eastern office, Fixed asset account, Dr $700 In the transaction, the debit total isn't equal to the credit total for each office, but the totals are equal by the entire company.

13 Configuring Companies 13 Configuring Companies For a number of legal entities, you can set up Acumatica ERP in one of two ways, depending on the business requirements of the companies: You can configure an independent tenant for each company, or use one tenant for all companies and configure a set of branches for each company in the tenant. A single instance of Acumatica ERP may be used by multiple tenants that are isolated from one another. A tenant is a technical entity that is selected by the user to sign in to the Acumatica ERP website. You can use tenants for completely independent companies, including companies that are located in different countries and use a different base currency, chart of accounts, and fiscal year. Technically, Acumatica ERP tenants share the same database, as the diagram below shows. For example, if one company's subsidiary is located in the United States and another subsidiary is located in France, you have to use two tenants for these companies. To prepare consolidated reports that include the financial data of both subsidiaries, you have to set up the process of translation into a single reporting currency and set up the process of data consolidation across the tenants. (These processes are outside of the scope of this course). The Acumatica ERP license applies to the number of entities that are tenants you can create on one Acumatica ERP instance. Figure: Tenants in Acumatica ERP Within a tenant, you have to create one branch or multiple branches. A branch is a logical entity that is selected by the user after the user has signed in to Acumatica ERP. Branches can represent independent companies, but these companies have to use the same base currency, chart of accounts, and fiscal year. Branches can also represent physical locations of one company, such as the company's offices. If you can set up related companies as branches, you can take advantage of branches in the system as follows: Use the provided out-of-the-box reports by branch and consolidated reports, and prepare any needed reports based on branches. With branches, you don't need to have a subaccount segment to segregate the profit and loss reporting by company location; you can use branches for that. Automate the balancing of intercompany or intracompany transactions by the specified rules (account mapping).

14 Configuring Companies 14 Configure user access to branches based on user roles so that only the users assigned to a certain role have access to specified branches. (For more information, see Branch Security Administration in the Acumatica ERP User Guide.) Configure user access to sensitive data so that certain users have access to certain accounts and subaccounts within the branches to which they have access. (For more information, see Branch Security Administration in the Acumatica ERP User Guide.) Figure: Branches in Acumatica ERP You can set up companies as branches if the following conditions take place: The companies use the same base currency. The companies use the same fiscal year. The companies have similar charts of accounts. The companies can share the structure of business account IDs (branch, vendor, customer, and employee IDs). In the example of this course, the Software and Computers companies match these conditions and you can configure them as branches in one Acumatica ERP tenant. If any of the four conditions was false, you would have to set up the companies as individual tenants. Related Links Branch Security Administration

15 Lesson 1: Planning and Enabling Features 15 Lesson 1: Planning and Enabling Features To start this course, you have prepared a new tenant on Acumatica ERP, which you are going to configure for financial accounting in the Software Inc. and Computers Inc. companies. Before you can configure any module, you have to enable all required features in the system according to the functionality requirements: 1. Launch the Acumatica ERP website and sign in to the tenant company. In this course, you start from the minimum default feature set and enable more features as you need them in the course lessons. In production, conversely, we recommend that you enable all the needed features at the very beginning as described in this lesson. 2. On the Enable/Disable Features form (CS100000; Configuration > Common Settings > Licensing), enable the following features: a. Default features: Organization (the group node), Finance (the group node), Misc (the group node), Misc > Scheduled Processing b. Additional: Consolidated Posting to GL (within the Finance group) After the features are enabled, you have to activate the Acumatica ERP license by using the Activate License form (SM201510; Configuration > Common Settings > Licensing). For educational purposes of this course, you use Acumatica ERP under the trial license that doesn't require activation and provides all available features. For production, you have to activate the purchased license; each particular feature may be a subject to additional licensing; please consult the Acumatica ERP sales policy for details. We don't recommend that you disable a feature in a live system where the feature might be already in use. Disabling a feature that is in use may cause inconsistency of data or data loss. Feature in use means that you have specified some configuration that uses the feature, or there is data that refers to feature-specific entities. For example, if there are general ledger transactions with subaccounts, disabling the Subaccounts feature may cause unexpected results, including the data loss. The use of subaccounts is described in greater detail further in this course.

16 Lesson 2: Planning IDs and Configuring Segmented Keys 16 Lesson 2: Planning IDs and Configuring Segmented Keys In this lesson, you will learn about configuring identifiers in Acumatica ERP. This lesson is for information and doesn't require any actions from you on the training database. After you have enabled features, you have to configure the structure of identifiers (IDs) for entities that will be used in the system. In this course, you have to configure the IDs for the following entities: Business accounts General ledger accounts Subaccounts Cash accounts The structure of these identifiers is defined by segmented keys. There is a segmented key for each of the listed entities. The segmented key specifies the length, segmentation, auto-numeration, and validation properties for the identifiers. Segmented keys are configured on the Segmented Keys form (CS202000; Configuration > Common Settings > Segmented Keys). In this course, you will configure the segmented keys for the listed entities one by one as you need them. First of all, you need to configure the business account IDs (see the detail information below). There are other entities for which you might need to configure IDs in a live system, such as inventory items, but this is outside of the scope of the course. For more information, see the Identifier Segmentation article in the Acumatica ERP User Guide. Before the first transaction or document will be created, you also have to configure the numeration of general ledger (GL) batches and documents in the system. For GL batches and documents, you don't have to configure segmented keys. You only have to configure the numbering sequences that define the format of automatically assigned numbers. (Configuring numbering sequences for GL batches and documents is described in detail in the data migration lessons further in this course.) Business Account IDs Auto-Numerated Segments Validated Segments Business Account IDs Business accounts are branches, vendors, customers, and employees. When you are planning the structure of IDs, you have to consider the naming requirements, the data records that might need to be migrated to the system, and the specifics of business account IDs in Acumatica ERP, which are described below. If you want to use auto-numerated IDs, make sure you provide them long enough for the future. In this course, we need the following structure of business account IDs, and you have to appropriately configure the segmented keys for them: Branch IDs of one 10-symbol segment, such as WEST Vendor IDs of one 10-symbol auto-numerated segment with prefix V, such as V Customer IDs of one 10-symbol auto-numerated segment with prefix C, such as C In the system, the structure of business account IDs that is, the number of segments and their length is defined by the BIZACCT segmented key. The BIZACCT segmented key applies to branch IDs. The CUSTOMER and VENDOR segmented keys inherit their structure from BIZACCT and apply to customer IDs and vendor IDs respectively (see the diagram below). The EMPLOYEE segmented key also inherits the structure from BIZACCT and applies to employee IDs (not used in this course).

17 Lesson 2: Planning IDs and Configuring Segmented Keys 17 Figure: Segmented keys used for business accounts You don't have to configure anything in the BIZACCT segmented key in this course. The needed structure of branch IDs matches the default settings of BIZACCT, which you can review on the Segmented Keys form (CS202000). For customer IDs and vendor IDs, you have to configure automatic numeration. To make vendor IDs and customer IDs auto-numerated in separate sequences, you have to specify different numbering sequences in the VENDOR and CUSTOMER segmented keys, but not in BIZACCT. See Auto-Numerated Segments. Auto-Numerated Segments One of the identifier segments can be numerated automatically. To make an auto-numerated segment, you have to specify the numbering sequence in the segmented key and select the segment that should be numerated. Since you need individual sequences for customers and vendors, you have to specify different numbering sequences in the CUSTOMER and VENDOR segmented keys. After you have specified the different numeration in the segmented keys, the system will automatically insert appropriate customer and vendor IDs in each new customer or vendor account that you create and save. If you needed a shared sequence of vendor and customer IDs, you would specify the same numbering sequence in the CUSTOMER and VENDOR segmented keys and these business accounts would get their IDs from the same sequence. For example, if you specify the same numbering sequence that starts from in the CUSTOMER and VENDOR segmented keys, you might have vendor , customer , vendor , and so on. (If you specify the numbering sequence in BIZACCT, this sequence is applied to branch IDs and is copied to the CUSTOMER, VENDOR, and EMPLOYEE segmented keys, in which you can change the copied settings.) You don't have to configure the CUSTOMER and VENDOR segmented keys right now. The steps to configure the vendor IDs and customer IDs are described in detail in the data migration lessons further in this course. Validated Segments The Edit Mask and Case Conversion settings specify the format of segment values. Edit Mask defines a set of characters that is allowed for input in the segment; the default value is Unicode. Unicode means that the segment value can be a string of any symbols, including digits, language symbols, and special characters, such as & and %. When you configure a segment, you can select a more restricted set of characters, for example, Alphanumeric, which allows only Latin letters and digits. Case conversion specifies how the system should transform values if the IDs are entered manually; the default value is Uppercase. The Uppercase setting makes the system automatically convert letters

18 Lesson 2: Planning IDs and Configuring Segmented Keys 18 entered by users to uppercase, and the system saves values to the database in uppercase. If you specify No Change, the system saves the values as entered. If you provide a list of allowed values for a segment, you have to define them on the Segment Values form (CS203000; Configuration > Common Settings > Segmented Keys) and select the Validate check box for the segment in the segmented key. On the Segment Values form (CS203000), you can add only values that match the Edit Mask setting of the segment; the Case Conversion setting also applies to them. When the user enters a value into a validated segment, the system checks that the value belongs to the list of allowed values and shows an error if it doesn't. You will configure validated segments in the SUBACCOUNT segmented key further in this course. If you need to have separate lists of segment values between vendors and customers, you have to select the Validate check box in the CUSTOMER and VENDOR segmented keys, but not in BIZACCT. After that you can define the lists of allowed values for the corresponding segments of the CUSTOMER and VENDOR segmented keys. If you make an auto-numerated segment, you have to specify the numbering sequence in the segmented key and select the Auto Number check box for the segment that should be numerated. The length of the numbering sequence must equal the segment length, and the number format must match the Edit Mask setting of the segment. For example, if you use numbers with a prefix, such as C , you have to specify Alphanumeric or Unicode edit mask for the segment. You will configure auto-numerated segments in the CUSTOMER and VENDOR segmented keys further in this course. Related Links Identifier Segmentation

19 Lesson 3: Subaccounts 19 Lesson 3: Subaccounts In this lesson, you will configure the subaccount structure in the system. If the companies decide to use subaccounts, the subaccount structure has to be configured at the very beginning of the system setup. The companies want to report their expenses by department and their revenue by the revenue source and sales region. To support these categories, you will configure the subaccount with segments as shown in the picture below. Figure: The structure of subaccounts To configure the subaccounts that provide the needed categories for reports, you will complete the following tasks, which are described in detail below: 1. Configure the SUBACCOUNT segmented key. 2. Define the allowed values for the segments of the SUBACCOUNT segmented key. 1. Configure the SUBACCOUNT Segmented Key 1. Enable the following additional feature on the Enable/Disable Features form (CS100000; Configuration > Common Settings > Licensing): Subaccounts (within the Finance group) Do not disable the Subaccounts feature once you have processed at least one document with a subaccount; otherwise, the data may become inconsistent after the feature is disabled. 2. Open the Segmented Keys form (CS202000; Configuration > Common Settings > Segmented Keys) and select SUBACCOUNT in the Segmented Key ID box. 3. Select the On-The-Fly Entry check box. This option is available only for the SUBACCOUNT segmented key. You have selected the On-The-Fly Entry check box to make users able to combine subaccounts from the needed segments during the data entry. For each segment, the user can type an allowed value or press F3 to select a value from the predefined list. Each new combination is saved to the list that you can view and edit on the Subaccounts form (GL203000; Finance > General Ledger > Configuration > Setup). If the On-The-Fly Entry check box is cleared, you have to predefine all possible combinations on the Subaccounts (GL203000) form, and users will be able to select only entire subaccounts from this list.

20 Lesson 3: Subaccounts 20 On the Subaccounts (GL203000) form, you can deactivate a combination, so that the users won't be able to create a new document or transaction with this combination. Also, on this form, you can specify the description of a particular combination to use this description in the auto-expanded units and rows of analytical reports (ARM). 4. Define three segments for SUBACCOUNT: Segment 1: Description: Department, Length: 3, Edit mask: Unicode, Case Conversion: Uppercase, Validate: Selected, Auto Number: Cleared Segment 2: Description: Revenue Source, Length: 2, Edit mask: Unicode, Case Conversion: Uppercase, Validate: Selected, Auto Number: Cleared Segment 3: Description: Sales Region, Length: 2, Edit mask: Unicode, Case Conversion: Uppercase, Validate: Selected, Auto Number: Cleared Figure: Configuration of the SUBACCOUNT segmented key The Edit Mask defines the set of characters that is allowed for input in the segment. You have to select the Unicode edit mask to be able to use the? and * wildcard characters in the subaccount selection expressions in data sources of analytical reports (ARM). If you instead selected Alphanumeric, you wouldn't be able to use wildcards in the report expressions for subaccounts. 2. Define the Allowed Values for the Segments of the SUBACCOUNT Segmented Key On the Segment Values form (CS203000; Configuration > Common Settings > Segmented Keys), you define the allowed values for each segment, to be able to create subaccounts as a combination of only these values. Each value in the list must comply with the format specified in the Edit Mask of the segment. Since the Validate check box is selected, the system checks that an entered value is from the list of values allowed for the segment. If the Validate check box is cleared, the system checks whether the entered value matches the format specified in the Edit Mask. 1. On the Segment Values form (CS203000), select SUBACCOUNT in the Segmented Key ID box. 2. In the first row of the table, define the department codes for segment 1 of the subaccount, which are shown below. Value Description ADM Administrative DEV Development

21 Lesson 3: Subaccounts Value Description SAL Sales CON Consulting 000 Non-specific In the second row of the table, select 2 in the Segment ID column, and define the revenue source codes (shown below) for segment 2. Value Description TR Training CU Customization SU Support CO Consulting 00 Non-specific In the third row of the table, select 3 in the Segment ID column, and define the sales region codes by uploading them from the USAStateCodes.xlsx file. While uploading the file, in the Column window, map the State ID column to Value and the State Name column to Description. Now the appropriate subaccounts must be specified for every transaction in the system. Users can review the account balances broken down by subaccounts and build analytical reports. The examples of subaccount use are described further in this course. You can restrict users' access to particular subaccounts, which is outside of the scope of this course. For more information, see Overview of Restriction Groups in the Acumatica ERP User Guide. Related Links Overview of Restriction Groups

22 Making Corrections to the Configuration of Accounts and Subaccounts 22 Making Corrections to the Configuration of Accounts and Subaccounts This information is provided for reference and not a required reading in this course. We recommend that you carefully plan the chart of accounts and the subaccount structure before implementing the system. However, you might find yourself in a situation where you need to make changes to the configuration in a live system. Below is the description of possible options. Before making any changes, we recommend that you have a backup of data so that you are able to rollback the database to a valid state if something goes wrong. Accounts After you have specified the chart of accounts and the transactions have been posted, you can add more accounts to the chart of accounts, but you cannot delete an account if there are transactions that refer to this account. If you need to make changes to the chart of accounts in a live system, you have the following options: Deactivate an account on the Chart Of Accounts form (GL202500). The history of transactions remains on the account but users cannot create new documents with the deactivated account. Change the account number on the Chart Of Accounts form (GL202500). The system updates the account number in the history of transactions and the new number appears in the system reports and inquiries. Notice that changing the number of the account can make the auditing more difficult especially after the old number has been disclosed in printed reports. Merge accounts by moving the balances to one account and then deactivating the unnecessary accounts on the Chart Of Accounts form (GL202500). Subaccounts After the subaccounts are fully configured and transactions are posted, you can only append a segment to the subaccount, but you cannot delete segments because it may cause data loss. If you need to change the configuration of subaccounts in a live system, you have the following options: You can deactivate a particular account/subaccount combination on the Subaccounts (GL203000) form. The history of transactions remains on the subaccount but users cannot create new documents with the deactivated subaccount. You can add new segment values and edit existing values on the Segment Values form (CS203000). If you edit a segment value, you can update the list of subaccounts that uses the old value to the new value on the Subaccounts (GL203000) form, and the history of transactions will be updated. You can add a new segment to the end of the subaccount. In this case, the account/subaccount combinations that are referred to in existing transactions will get an empty value in the new segment. You can update the list of these combinations on the Subaccounts (GL203000) form and specify the needed value in the new segment. The history of transactions will be updated. You can merge subaccounts by moving the balances to one subaccount and deactivating the unnecessary account/subaccount combinations on the Subaccounts (GL203000) form. After that, you can also deactivate the unnecessary values on the Segment Values form (CS203000) so that the users cannot select these values when combining subaccounts "on the fly".

23 Lesson 4: Branches 23 Lesson 4: Branches You have already configured the segmented key for branch IDs (you will use the default one), and now you can create the first branch in the system. For each company, you have to create the needed number of branches. You have decided to create the branches that represent the companies' offices. Therefore, you have to create one branch for the Software company and two branches for the Computers company. The companies will have transactions posted to these branches. Both companies require filing Form 1099-MISC. The Software company consists of one branch and you will use this branch to specify the legal entity in the Form 1099-MISC report in the system. The Computers company consists of more than one branch, and you have to create an additional branch that will specify the legal entity in the Form 1099-MISC report in the system. You have to specify this additional branch as the consolidating branch in the company's ledger. The consolidating branch is used only in Form 1099-MISC and tax reports to specify the legal entity in the report. No transactions are posted to consolidating branches. Thus, you have to create the following branches in the system: The SOFT branch, which represents the Software office The WEST branch, which represents the western office of Computers Inc. (company's headquarters) The EAST branch, which represents the eastern office of Computers Inc. The COMP consolidating branch for Computers Inc., to be used for running Form 1099-MISC and tax reports To create the branches, do the following: 1. Enable the following additional feature on the Enable/Disable Features form (CS100000; Configuration > Common Settings > Licensing): Multi-Branch Support (within the Finance group) By enabling this feature, you can create more than one branch in the system. If you have a number of branches in the system, you can post transactions to each individual branch but you cannot post transactions between branches. To be able to post transactions between branches, you need the Inter-Branch Transactions feature, which is described further in this course. 2. On the Branches form (CS102000; Organization > Organization Structure > Configure), create and save the following branches: The SOFT branch: Branch ID: SOFT Branch Name: Software Inc. City: Los Angeles Country: US (United States) State: CA (California) Base Currency ID: USD Description: United States Dollar Currency Symbol: $ Decimal Precision: 2 When you save the first branch, you define the base currency ID in the system. This ID will be automatically used for all branches. The WEST branch: Branch ID: WEST

24 Lesson 4: Branches 24 Branch Name: Western office of Computers Inc, headquarters Company Name: Computers Inc. City: Los Angeles Country: US (United States) State: CA (California) The EAST branch: Branch ID: EAST Branch Name: Eastern office of Computers Inc. Company Name: Computers Inc. City: Los Angeles Country: US (United States) State: CA (California) The COMP branch: Branch ID: COMP Branch Name: Consolidating branch for Computers Inc. Company Name: Computers Inc. Country: US (United States)

25 Lesson 5: General Ledger 25 Lesson 5: General Ledger Each branch must be associated with a posting ledger that accumulates the general ledger transactions posted by the branch. Based on the transaction processing requirements of the companies and their organization structure, you determine that you need two posting ledgers in the system (see the image below). Transactions between the WEST and EAST branches of the Computers Inc. company do not require balancing. To provide users with the ability to make such transactions, you have to create one posting ledger for these branches. The COMP branch is the consolidating branch that is not used for transactions. For the Software Inc. company, you have to create another ledger and associate the only SOFT branch of the company with the ledger. Figure: The posting ledgers and inter-branch transactions across the companies You create posting ledgers as a required part of the configuration of the General Ledger module. After you have created the ledgers, you have to upload the chart of accounts and specify the General Ledger preferences to complete the minimum configuration of the module. Both companies will use the same chart of accounts that you will upload from the provided file. The detail instructions are given below. 1. Create the posting ledgers. 2. Link the branches to posting ledgers. 3. Upload the chart of accounts. 4. Configure the General Ledger preferences. 1. Create the Posting Ledgers On the Ledgers (GL201500; Finance > General Ledger > Configuration > Setup) form, create the posting ledgers as follows: 1. Create the ledger for transactions of the Software Inc. company with the following settings: Ledger ID: ACTUALSOFT Description: Software Inc. posting ledger Balance Type: Actual Is Consolidation Source: Cleared

26 Lesson 5: General Ledger Create the ledger for transactions of the Computers Inc. company with the following settings: Ledger ID: ACTUALCOMP Description: Computers Inc. posting ledger (save the record) Consol. Branch: COMP Figure: The configuration of the posting ledgers 2. Link the Branches to Posting Ledgers To link the branches to their posting ledgers, on the Inter-branch Account Mapping (GL101010; Finance > General Ledger > Configuration > Manage) form, do the following: 1. To link the SOFT branch to the ACTUALSOFT ledger, select SOFT in the Originating Branch box and ACTUALSOFT in the Posting Ledger box and save the changes, as shown in the following screenshot. Figure: The branch linked to the ledger 2. Link the EAST and WEST branches to the ACTUALCOMP ledger in the same way. The COMP branch is already linked to the ACTUALCOMP ledger, because we have specified it as a consolidating branch for this ledger. The COMP branch isn't used for transaction posting; this additional branch represents the Computers Inc. legal entity in the system for consolidated 1099 and tax reports. 3. Upload the Chart of Accounts To upload the chart of accounts, proceed as follows: 1. On the Segmented Keys form (CS202000; Configuration > Common Settings > Segmented Keys), select the ACCOUNT segmented key and set the length of its only segment to On the Chart Of Accounts form (GL202500; Finance > General Ledger > Configuration > Manage), upload the chart of accounts from the COA_Intermediate.xlsx file, which already includes the Retained Earnings and YTD Net Income accounts. While you are configuring the system, you can change any account number on the Chart of Accounts form (GL202500), if needed, after the chart of accounts has been uploaded and saved.

27 Lesson 5: General Ledger 27 However, we do not recommend that you change the account number during the production usage of the system, because it will introduce difficulties with auditing, especially after the account number has been printed and disclosed in company reports. The chart of accounts includes the Due to/from Software Inc and Due to/from Computers Inc accounts that will accumulate the companies' liabilities from intercompany transactions. 4. Configure the General Ledger Preferences Open the General Ledger Preferences form (GL102000; Finance > General Ledger > Configuration > Setup), specify the following settings, and save your changes: YTD Net Income Acct: Year-to-Date Net Income Retained Earnings Acct: Retained Earnings Automatically Post on Release: Selected

28 Lesson 6: Balancing Entries for Intercompany Transactions 28 Lesson 6: Balancing Entries for Intercompany Transactions According to the transaction processing requirements, the companies make intercompany transactions, for example, between WEST (Computers) and SOFT (Software) branches. Also, the Computers company makes transactions between its two branches, WEST (western office) and EAST (eastern office). To be able to make transactions between branches, you have to enable the Inter-Branch Transactions feature, configure the posting ledgers, and define the inter-branch account mapping if needed. After you have enabled the Inter-Branch Transactions feature, the Branch Accounting check box appears on the Ledgers form (GL201500) and you can configure the posting ledgers for transactions between branches. Branches that use the same posting ledger may have transactions: Without balancing entries. To enable such transactions, you have to clear the Branch Accounting check box for the ledger. After that, the users can make transactions between the branches in this ledger but no balancing entries will be added to these transactions. This is the configuration that you will use for the Computers company. With balancing entries. For branches that use the same posting ledger, you have to select the Branch Accounting check box in the ledger and define the inter-branch account mapping for these branches. After that, the users can make transactions between the branches in this ledger and the balancing entries will be added to these transactions. This configuration is not used in this course. Branches that use different posting ledgers may have transactions with balancing entries only. For these branches, you have to define the inter-branch account mapping. After that, the users can make transactions between the branches and the balancing entries will be added to the transactions in the corresponding ledgers. You will use this configuration for transactions between the Software and Computers companies. In this lesson, you will configure the processing of transactions as required for the companies and define the account mapping for the transactions between the Computers Inc. and Software Inc. companies. Complete the following steps: 1. Enable the following additional feature on the Enable/Disable Features form (CS100000; Configuration > Common Settings > Licensing): 2. Inter-Branch Transactions (within the Multi-Branch Support node) On the Ledgers form (GL201500), make sure that the Branch Accounting check box is cleared for the ACTUALCOMP ledger. This is the configuration that you need for the Computers company. If the Branch Accounting check box is cleared, the system allows transactions between the branches without account mapping, therefore no balancing entries will be added to the intracompany transactions in this ledger. The examples of such transactions are described in detail further in this course. 3. On the Inter-branch Account Mapping form (GL101010; Finance > General Ledger > Configuration > Manage), define the inter-branch account mapping for automatic balancing of intercompany transactions between Software and Computers. You need to define the following mappings: Originating branch: SOFT, Destination branch: EAST Originating branch: SOFT, Destination branch: WEST Originating branch: EAST, Destination branch: SOFT Originating branch: WEST, Destination branch: SOFT On the Transaction in Originating Branch tab, you specify the rule of how to create balancing entries in the branch that originates the transaction. If the account that should be updated in the destination branch falls into the range between Account From and Account To selected for the branch, the balancing entry is posted to the specified offset account and subaccount in the originating branch. In the destination branch, the balancing entry is posted to the offset account and subaccount selected on the Transaction in Destination Branch tab for the originating account. An example is described further in this lesson.

29 Lesson 6: Balancing Entries for Intercompany Transactions 29 The Transaction in Originating Branch and Transaction in Destination Branch tabs are available only if the Inter-Branch Transactions feature is enabled. a. Originating branch: SOFT, Posting Ledger: ACTUALSOFT Transaction in Originating Branch Destination Branch Account From Account To Offset Account Offset Subaccount EAST Due to/from Computers Inc., RELCURLIAB* WEST Due to/from Computers Inc., RELCURLIAB* Transaction in Destination Branch Destination Branch Account From Account To Offset Account Offset Subaccount EAST Due to/from Software Inc., RELCURLIAB* WEST Due to/from Software Inc., RELCURLIAB* * RELCURLIAB (liability) is an account class that is preconfigured on the Account Classes form (GL202000). As the offset account for balancing entries, you can use an asset or liability account that can be assigned to an appropriate account class as you need for reporting. b. Originating branch: EAST, Posting Ledger: ACTUALCOMP Transaction in Originating Branch Destination Branch Account From Account To Offset Account Offset Subaccount SOFT Due to/from Software Inc., RELCURLIAB Transaction in Destination Branch c. Destination Branch Account From Account To Offset Account Offset Subaccount SOFT Due to/from Computers Inc., RELCURLIAB Originating branch: WEST, Posting Ledger: ACTUALCOMP

30 Lesson 6: Balancing Entries for Intercompany Transactions 30 You can use the copy-paste functionality on the form to copy the account mapping defined for EAST to the WEST account mapping. Transaction in Originating Branch Destination Branch Account From Account To Offset Account Offset Subaccount SOFT Due to/from Software Inc., RELCURLIAB Transaction in Destination Branch Destination Branch Account From Account To Offset Account Offset Subaccount SOFT Due to/from Computers Inc., RELCURLIAB In the image below, you can see an example of a bill that was released and the transactions were posted after you set up the inter-branch account mapping. The $2400 bill was processed by the Western office of Computers Inc. (that is, WEST is the originating branch of the transaction). The bill contains three lines of expenses with different destination branches: $800 expenses of the WEST branch, $700 expenses of the EAST branch, and $900 expenses of the SOFT branch. The transaction to the EAST branch is the transaction within the Computers company, which doesn't require balancing in the company's ledger according to the transaction processing requirements. The transaction to the SOFT branch belongs to the Software company, and system has added the $900 balancing entry to each company's ledger to make the entire transaction balanced in both ledgers. The balancing entries are automatically added to the batch during the transaction posting process according to the inter-branch account mapping defined for branches. The account mapping that is defined for the WEST branch as for the originating branch is applied as follows: "In the transaction that originates from WEST, for each journal entry with the SOFT destination branch, add the balancing entry with WEST to the Due to/from Software Inc. account and the balancing entry with SOFT to the Due to/from Computers Inc. account." The examples of inter-branch transactions are described in detail further in this course.

31 Lesson 6: Balancing Entries for Intercompany Transactions 31 Figure: Balancing entries added to the transaction that originates from WEST and has SOFT as one of the destination branches In Column Configuration of the table on the Journal Transactions form (GL301000;), you can add the Ledger column to the table to view the ledger of the journal entries. By default, the column is hidden.

32 Lesson 7: Cash Accounts 32 Lesson 7: Cash Accounts Finally, you have to configure the cash accounts for companies. Both companies have their own cash accounts that you will create in the system: SOFT: The checking account of the Software Inc. company COMP: The checking account of the Computers Inc. company The accountant of the headquarters of the Computers Inc. company can manage both cash accounts and process transactions to and from them. In this lesson, you will configure the Cash Management module and create the cash accounts for the companies' checking accounts by performing the following tasks: 1. Define the cash account structure. 2. Configure the Cash Management preferences. 3. Create the cash accounts. 1. Define the Cash Account Structure On the Segmented Keys form (CS202000; Configuration > Common Settings > Segmented Keys), select the CASHACCOUNT segmented key and define the cash account structure by specifying the following settings: On-The-Fly Entry: Cleared Segment 1: Description: Account, Length: 6, Edit Mask: Unicode, Case Conversion: Uppercase, Validate: Cleared, Auto Number: Cleared Segment 2: Description: Company, Length: 4, Edit Mask: Unicode, Case Conversion: Uppercase, Validate: Cleared, Auto Number: Cleared 2. Configure the Cash Management Preferences On the Cash Management Preferences form (CA101000; Finance > Cash Management > Configuration > Setup), specify the following settings: Cash-in-Transit: (Cash in Transit Account) Cash-in-Transit Subaccount: Automatically Post to GL on Release: Selected Require Approval: Cleared 3. Create the Cash Accounts On the Cash Accounts form (CA202000), create the cash accounts for the companies' checking accounts for Software Inc. and Computers Inc. with the settings as listed below: SOFT - Checking Account: Cash Account: SOFT Account: (Checking Account) Subaccount: Branch: SOFT Description: Checking Account of Software Inc. Restrict Visibility with Branch: Cleared

33 Lesson 7: Cash Accounts COMP - Checking Account: Cash Account: COMP Account: (Checking Account) Subaccount: Branch: WEST Description: Checking Account of Computers Inc. Restrict Visibility with Branch: Cleared The system can create general ledger transactions only to the existing branch-account-subaccount combinations. After you have done the lessons of this part, you have set up the main configuration entities of the system (branches, ledgers, cash accounts) but the compete configuration of the financial modules is not yet ready that is, you have to define the financial year and generate the financial periods in General Ledger, finish the configuration of the Cash Management module, and configure the Accounts Payable and Accounts Receivable modules. However, you skip these final configuration steps in this course because they are covered in detail in the F100 Financials: Basic course. For informative purposes, the reference of the final configuration that is used in this course is provided in the appendix of this guide. To proceed with Part 2 of this course, you have to prepare the database with the training data as described in How to Use This Course.

34 Review Questions 34 Review Questions Answer the following questions to prepare yourself for the certification test: Which conditions must be met so that you can set companies as branches within a tenant? Which transactions require balancing entries? How many posting ledgers are needed for a company that consists of two branches? Take the Test Now take the online Certification Test 1: Configuring Branches and Subaccounts at Acumatica University.

35 Part 2: Transactions Across Companies 35 Part 2: Transactions Across Companies In this part of the course, you will learn how to make intercompany transactions and create some examples of automatically balanced transactions. You have already configured the system so that the transactions are automatically balanced between the Software Inc. and Computers Inc. companies. Therefore, Software and Computers can report their balance sheets separately. At the end of this part, you will review reports by the companies and consolidated reports for the financial periods where you have posted the transactions. For this part of the course and the next parts of it (Part 2 through Part 7), you will use a company with the F200Init data preloaded, which provides a fully configured system with data and analytical reports (ARM) specially designed for this course. The F200Init database includes the data migrated to the system as described in the last part of the course. For details on the configuration and predefined data in the F200Init database, you can see Appendix: Final Configuration Reference and Appendix: Demo Data Reference at the end of the course guide.

36 Company Story: Intercompany Transactions 36 Company Story: Intercompany Transactions According to the story, the headquarters of the Computers company pays all shared bills for expenses incurred by two companies and receives all shared payments. In this part of the course, you will make the transactions that are listed below. All these transactions originate from the WEST branch, which represents the headquarters of the Computers company, and have different destination branches. The transactions illustrate the implementation of the transaction processing requirements that are described in detail in the Company Story: Related Companies topic. Accounts Payable documents: Bill transaction within the same company (Lesson 7, Step 1): Air conditioner servicing bill of $300 (originating branch WEST, destination branches WEST $100 and EAST $200) Payment transaction within the same company (Lesson 7, Step 2): Payment to Airgas Inc. for the air conditioner servicing bill (originating branch WEST, destination branch WEST) Bill across companies (Lesson 7, Step 3): Office furniture repair bill of $2400 (originating branch WEST, destination branches WEST $800, EAST $700 and SOFT $900) Payment for two companies (Lesson 7, Step 4): Payment to Repair Master for three bills: office furniture repair bill of $2400 for both companies; and two bills, $1300 and $980, for Software Inc. from imported data (payment originating branch WEST, destination branches WEST $2400 and SOFT $2280) Accounts Receivable documents: Invoice across companies (Lesson 8, Step 1): $3900 invoice for services (originating branch WEST, destination branches WEST $900 and SOFT $3000) Payment for two companies (Lesson 8, Step 2): Payment to YY Studio for two invoices: $3900 invoice for services and $ invoice from imported data. (payment originating branch WEST, destination branches WEST $3900 and SOFT $ ) Cash Management documents: Funds transfer (Lesson 9): WEST funds transfers of $3930 to SOFT

37 Lesson 8: Accounts Payable Documents 37 Lesson 8: Accounts Payable Documents In this lesson, you will review the transactions that are generated from Accounts Payable (AP) documents that involve one or two companies. You will see how the system adds balancing entries to the companies' posting ledgers based on the account mapping configured in the system. The Computers company can process and pay a bill received for expenses incurred by one company or both companies. The transactions are automatically balanced across the companies' ledgers so that the companies can independently report their assets and liabilities. In this lesson, you will make the following transactions: 1. An AP bill transaction within the same company. 2. An AP payment transaction within the same company. 3. An AP bill transaction across companies. 4. An AP payment transaction across companies. 1. Making an AP Bill Transaction Within the Same Company The Western office of the Computers company, which is represented by the WEST branch in the system, processes the $300 bill received from Airgas, Inc. on 1/10/2014. The bill is for air conditioner servicing in the Western office in the amount of $100 and in the Eastern office in the amount of $200. The servicing took place in , and the bill is due in 30 days. Enter and process the bill in the system as follows: 1. Select WEST as the current branch. To do this, click the company's name and select the needed branch in the drop-down list (see the following screenshot). Figure: Selection of the current branch In multi-branch configurations, users work under certain branch which is selected as current during the current user session. Current branch is used for insertion of the default values into new documents and report parameters. When you create a new document, the system inserts the current branch as the default originating and destination branch into the document. If the Receiving branch is specified for a vendor on the Purchase Settings tab of the Vendors form (AP303000), the system inserts the specified receiving branch as the originating branch on the Financial Details tab into the vendor's documents by default. The system also provides user access according to the branch security settings, if specified. By default, if you haven't configured any access restrictions by branch, all users have access to all objects of any branches in the system. For more information about user access by branch, see the Related Links section. 2. On the Bills and Adjustments form (AP301000; Finance > Accounts Payable > Work Area > Enter), create a bill from the V (Airgas, Inc.) vendor with the following settings: Type: Bill Vendor: V Terms: 30D Date: 1/10/2014

38 Lesson 8: Accounts Payable Documents Post Period: Description: Air conditioner servicing On the Document Details tab, add a line with the repair expense for the Western office and the following settings: Branch: WEST Ext. Cost: Account: (Repair & Maintenance Expense) Subaccount: On the Documents Detail tab, add a line with the repair expense for the Eastern office (the EAST branch) and the following settings: Branch: EAST Ext. Cost: Account: (Repair & Maintenance Expense) Subaccount: Release the document and review the generated batch by using the Journal Transactions form (GL301000; Finance > General Ledger > Work Area > Enter), shown in the screenshot below. On release of the AP bill, the system generates a transaction that has the originating branch and one destination branch or multiple destination branches. The AP account is credited for the originating branch specified on the Financial Details tab of the bill. The default originating branch is the one to which the user is logged in while creating the document. The destination branches are specified in the document lines. Accounts from each document line are debited for the destination branch specified in this line. Thus, WEST is the originating branch, and WEST and EAST are two destination branches of the transaction generated on release of the AP bill. Figure: The batch generated for the transaction between offices of the same company When posting the transaction, the system analyzes whether the transaction requires balancing entries. Because the transaction involves the WEST and EAST branches, it is posted to the ACTUALCOMP ledger. Within a ledger, transactions can be either balanced or non-balanced across branches. For the ACTUALCOMP ledger, the Branch Accounting check box is cleared on the Ledgers form (GL201500; Finance > General Ledger > Configuration > Setup); therefore, the balancing entries aren't required for inter-branch transactions posted to this ledger. (Otherwise, you would have to define the account mapping between WEST and EAST to be able to post transactions across these branches.) In the batch, the originating branch is displayed in the Branch box of the Batch Summary area on the Journal Transactions form (GL301000). The ledger that is displayed in the batch summary is the posting ledger of the originating branch of the transaction. This is not necessarily the ledger to which all transactions of the batch are posted. Each transaction consists of journal entries that are posted to the posting ledger of the branch of the journal entry. Thus, the WEST and EAST journal entries are posted to the ACTUALCOMP ledger. The branch's transactions are posted to only the ledger that is specified for the branch on the Inter-branch Account Mapping form (GL101010; Finance > General Ledger > Configuration > Manage).

39 Lesson 8: Accounts Payable Documents 39 On the Journal Transactions form (GL301000), you can add the Ledger column to view the ledger to which each journal entry has been posted. If the Consolidated Posting to GL feature is enabled, the system groups the transactions into batches by currency, post period, and originating branch of the transaction. 2. Making an AP Payment Transaction Within the Same Company The WEST branch of the Computers company pays the $300 air conditioner servicing bill from the COMP cash account by check. Enter and process the payment as follows: 1. Select the WEST branch as the current branch. 2. On the Bills and Adjustments form (AP301000), select the $300 bill to Airgas Inc, which you are going to pay. 3. On the form toolbar, select Actions > Pay Bill/Apply Adjustment to create the payment document (AP check) in the system. 4. On the Checks and Payments form (AP302000; Finance > Accounts Payable > Work Area > Enter), which appears for creation of the AP check, leave the full payment amount for the bill. 5. Review the originating branch, which is specified on the Financial Details tab of the Checks and Payments form (AP302000) for AP check. The WEST branch is the originating branch of the transaction that will be generated on release of the AP check. The cash account is updated for the branch of the cash account. The destination branches of the AP check are the originating branches of the bills for which the payment is made. The amount debited to the AP account is posted for the originating branch of the bill. 6. Set the application date to 1/20/2014 and the application period to , print out the check, and release the document in the system. 7. Review the batch generated on release of the AP check (see the following screenshot). Figure: The generated batch In the batch, WEST is the originating branch of the AP check and the destination branch of the AP check taken from the originating branch of the bill. 3. Making an AP Bill Transaction Across Companies The headquarters of the Computers company processes an office furniture repair bill received from Repair Master. The $2400 utility bill includes the expenses incurred by all offices of the ABC companies and should be paid within 30 days of 1/12/2014. $700 of the bill is incurred by the Eastern office of Computers, $800 is incurred by the Western office, and $900 is incurred by the Software company. Enter and process the bill in the system as follows: 1. Select the WEST branch as the current branch. 2. On the Bills and Adjustments form (AP301000), create a bill from the V (Repair master) vendor: Type: Bill Vendor: V Terms: 30D

40 Lesson 8: Accounts Payable Documents Date: 1/12/2014 Post Period: Description: Office furniture repair On the Document Details tab, add a line with the repair expense for the Western Los Angeles office of Computers Inc. with the following settings: Branch: WEST Ext. Cost: Account: (Repair & Maintenance Expense) Subaccount: On the Document Details tab, add a line with the repair expense for the Eastern Los Angeles office of Computers Inc. and the following settings: Branch: EAST Ext. Cost: Account: (Repair & Maintenance Expense) Subaccount: On the Document Details tab, add the line with the repair expense for the Software company's office and the following settings: Branch: SOFT Ext. Cost: Account: (Repair & Maintenance Expense) Subaccount: Release the bill and review the generated batch. The system recognizes that the transaction should be balanced because the transaction is posted to two ledgers, ACTUALCOMP and ACTUALSOFT. The system automatically adds the balancing entries to the batch during the posting process. In the batch generated from the AP bill, you can see that the balancing entries match the account mapping that you have defined on the Inter-branch Account Mapping form (GL101010) for the WEST originating branch, as the picture below shows.

41 Lesson 8: Accounts Payable Documents 41 Figure: Balancing entries added to the transaction across two companies If the transaction should be balanced, on posting, the system adds the balancing entries to the batch that is generated from any module or is entered manually on the Journal Transactions form (GL301000). 4. Making an AP Payment Transaction Across Companies The WEST branch of the Computers company pays outstanding bills to the Repair Master vendor. The company pays the $2400 bill of the Computers company and two outstanding bills of the Software company for $1300 and $980; these bills have been imported during data migration. Enter and process the payment as follows: 1. Select the WEST branch as the current branch. 2. On the Checks and Payments form (AP302000), select the Repair master (V ) vendor, the CHECK payment method, and the COMP cash account for the AP check. Alternatively, on the Bills and Adjustments form (AP301000), for the $2400 bill, you can select Pay Bill/Apply Adjustment to make the system generate the AP check. 3. Select the 1/31/2014 application date and application period. 4. On the Financial Details tab, review the originating branch of the AP check. WEST is the originating branch of the AP check that is, the current branch that has been inserted into the document by default. The destination branches of the AP check are the originating branches of the bills to which the payment applies. 5. Click Load Documents on the table toolbar of the Document Details tab to select the documents to apply. The bills in the following amounts should be added automatically: $1300, $980, and $2400. If you have created the AP check from the $2400 bill, clear the Payment Amount before clicking the Load Documents button. If the Payment Amount is zero, the system selects all applicable

42 Lesson 8: Accounts Payable Documents 42 documents; otherwise, the system selects the documents up to an amount that is not greater than the specified Payment Amount. 6. Specify $4680 as the payment amount, print the check, and release the document in the system. 7. Review the batch that was generated on release of the AP check (see the following screenshot). Figure: The batch generated on release of AP check The Accounts Payable account has been debited for the originating branches of the bills to which the AP check has been applied. The last two journal entries are the balancing entries that have been automatically added to the batch during the posting process. The balancing entries have been generated according to the account mapping defined between the WEST originating branch and the SOFT destination branch. Each balancing entry has the reference number of the document from which it has been generated that is, the reference number of the AP check. If the Consolidated Posting to GL feature is enabled and you release multiple documents simultaneously, the balancing entries would not be consolidated in the batch. Balancing entries would be separate with the reference number of each released document from which they have been generated. Related Links Branch Security Administration

43 Lesson 9: Accounts Receivable Documents 43 Lesson 9: Accounts Receivable Documents The Software and Computers companies participate in a project and deliver a complex service to the customer. The headquarters of the Computers company processes the invoice to the total amount of the project, and this transaction is automatically balanced across the two companies' ledgers so that each company can independently report its assets and liabilities. In this lesson, you will review the transactions that are generated from Accounts Receivable (AR) documents when the document involves two companies. Thus, you will make the following transactions: 1. The AR invoice transaction across companies 2. The AR payment transaction across companies 1. Making the AR Invoice Transaction Across Companies On 1/20/2014, the Computers company issues an invoice to the YY Studio customer in the amount of $3900 for services delivered to the customer by both companies. The Software company has provided services in the amount of $3000, and the Computers company has provided services in the amount of $900. To make an AR invoice transaction across companies, proceed as follows: 1. Select the WEST branch as the current branch. If the Shipping branch is specified for a vendor on the Delivery Settings tab of the Customers form (AP303000), the system inserts the specified shipping branch as the originating branch on the Financial Details tab into the customer's documents by default On the Invoices and Memos form (AR301000; Finance > Accounts Receivable > Work Area > Enter), create an invoice for the C (YY Studio) customer with the following settings: Type: Invoice Customer: C Date: 1/20/2014 Post Period: Description: Services delivered for project P0001 On the Document Details tab, add a line for the $900 revenue received by the Computers company with the following settings: Branch: WEST (you can process the sale to either branch) Ext. Price: Account: (Sales - Consulting Services) Subaccount: On the Document Details tab, add a line for the $3000 revenue received by the Software company: Branch: SOFT Ext. Price: Account: (Sales - Consulting Services) Subaccount: Release the invoice and review the generated batch. In the batch, the AR invoice contains the journal entries shown in the following screenshot:

44 Lesson 9: Accounts Receivable Documents 44 Figure: The batch generated on release of the invoice The last two journal entries are the balancing entries between the SOFT and WEST branches. 2. Making the AR Payment Transaction Across Companies On 1/30/2014, the Computers company receives a payment from the YY Studio customer for the project and for another invoice that has been imported for the Software company during data migration. Perform the following instructions: On the Payments and Applications form (AR302000; Finance > Accounts Receivable > Work Area > Enter), select the WEST branch and create a new payment with the following settings: Type: Payment Customer: C (YY Studio) Payment Method: CHECK Cash Account: COMP Payment Amount: Application Date: 1/30/2014 Application Period: Payment Ref.: Y Description: Payment for the P0001 project and invoice INV On the Documents to Apply tab, click Load Documents and upload all invoices up to 1/30/2014. Two invoices should appear in the table: the $ invoice with the INV reference number, and the new $3900 invoice that you have created for the project. 3. Release the payment and review the batch (see the following screenshot). Figure: The batch generated on release of the payment The Accounts Receivable account has been credited under the originating branches of the invoices to which the payment has been applied. The last two journal entries are the balancing entries between the SOFT and WEST branches. Related Links Branch Security Administration

45 Lesson 10: Funds Transfers 45 Lesson 10: Funds Transfers At the end of the period, the companies reconcile their due-to and due-from amounts to pay off one another. In this lesson you will make the funds transfer between the companies and review the transactions for and the balance of the Due-to/from accounts. Thus, you will perform the following steps: 1. Review the balances of the Due-to/from accounts for January Make the funds transfer between the companies 1. Reviewing the Balances of the Due-To/From Accounts for January Select WEST as the current branch. 2. On the Account Summary form (Finance > General Ledger > Work Area > Explore), clear the Branch box, and select ACTUALCOMP as the ledger and as the period. On the Account Summary form you can see that the WEST branch owes to $ to Software company for (as shown in the screenshot below). Figure: Balance of the account for The balance of the Due to/from Software Inc. account for the WEST branch plus the balance of the Due to/from Software Inc. account for the EAST branch must equal the balance of the Due to/from Computers Inc. account for the SOFT branch. 3. In the table, click the row for the Due to/from Software Inc. account, and click Account Details on the form toolbar. 4. On the Account Details form (GL404000; Finance > General Ledger > Work Area > Explore) that is brought up, review the balancing entry transactions for the period. For each balancing entry, you can see in the Ref. Number column the reference number of the document from which the entry has been generated (see the following screenshot).

46 Lesson 10: Funds Transfers 46 Figure: The balancing entries in the account for To review the document that generated the entry, click the View Source Document button on the form toolbar. 2. Making the Funds Transfer Between the Companies On 1/31/2014, the Computers company pays $3930 to the Software company. Process the funds transfer in the system as follows: 1. Set the business date to 1/31/ On the Funds Transfers form (CA301000; Finance > Cash Management > Work Area > Enter), select the WEST branch to make the funds transfer originate from this branch. On the Funds Transfers form (CA301000), all cash accounts are available for transfer-in and transfer-out. You have to configure user rights so that only an authorized person has access to this form. 3. Create a funds transfer from Computers Inc. to Software Inc. with the following settings: Description: Intercompany payoff Source Account: COMP (Checking Account of Computers) Transfer Date: 1/31/2014 Document Ref.: T Amount: Destination Account: SOFT (Checking Account of Software) Receipt Date: 1/31/2014 For simplicity, we omit the transfer delay time and possible bank charges in this example. You can specify the receipt date later than the transfer date, and the money will be moved first to the cashin-transit account and then to the destination account. Also, you can enter the bank charges by clicking Add Expense in the table and entering the cash transaction of the BANKCHARGE type. 4. Release the transfer and review the generated batch (see the following screenshot).

47 Lesson 10: Funds Transfers 47 Figure: The batch generated on release of the funds transfer 5. On the Account Details form (GL404000), review the balance of the account for Figure: The balancing entries in the account after the funds transfer Notice that the balancing entry from the funds transfer has appeared in the account details.

48 Lesson 11: Consolidated Reports 48 Lesson 11: Consolidated Reports In this lesson, you will review the following reports: The trial balance for a period by branch (the out-of-the-box Trial Balance Summary and Trial Balance Detailed for the selected branch) The trial balance for a period by company (the out-of-the-box Trial Balance Summary report with no branch specified for Computers, or with the SOFT branch selected for Software) The profit and loss statement for Software Inc. (a custom ARM report designed for the course, Profit and Loss Software & Computers for the Software Inc. unit selected in the report) The profit and loss statement for Computers Inc. by office and consolidated (Profit and Loss Software & Computers for the Computers Inc unit and nested units in the report) The consolidated profit and loss statement for two companies (Profit and Loss Software & Computers for the COMPUTERS AND SOFTWARE CONSOLIDATED unit in the report) The balance sheet for Software Inc. and Computers Inc. (a custom ARM report designed for the course, Balance Sheet Software & Computers) Complete the steps of the lesson as follows: 1. Review the trial balance for the period for the WEST and EAST branches of Computers Inc. You can view the summary and detailed trial balance by branch. To view the trial balance by branch, use the Trial Balance Summary (GL632000; Finance > General Ledger > Reports > Balance) and Trial Balance Detailed (GL632500; Finance > General Ledger > Reports > Balance) reports. Select the needed branch as the current branch and select the posting ledger of the branch in the report parameters. The following images show the Trial Balance Summary (GL632000) and Trial Balance Detailed (GL632500) reports. Figure: Trial Balance Summary for the WEST branch

49 Lesson 11: Consolidated Reports 49 Figure: Trial Balance Detailed for the WEST branch Notice that Trial Balance Detailed report (GL632500) displays income and expenses broken down by subaccounts. 2. Review the trial balance for the period for the Computers company, and then for the Software company. You can view the summary trial balance by company. To view the trial balance by company, use the Trial Balance Summary report (GL632000). To view the trial balance for the Computers company (shown below), select one of the company branches as the current branch, select the posting ledger of the company and leave the branch empty in the report parameters.

50 Lesson 11: Consolidated Reports 50 Figure: Trial Balance Summary for Computers Inc. To view the trial balance for the Software company (shown below), select the SOFT branch as the current branch, and select the ACTUALSOFT ledger and SOFT branch in the report parameters. Figure: Trial Balance Summary for Software Inc. 3. Review the profit and loss statement for Software Inc for Run the Profit and Loss Software & Computers report (Finance > General Ledger > Reports > Financial Statements) for the period. Click Groups and select the Software Inc. unit in the group menu.

51 Lesson 11: Consolidated Reports 51 Figure: Profit and Loss report for Software Inc. for The Profit and Loss Software & Computers analytical report has been specially designed for the course; for the design notes to the custom ARM reports in the course, see Notes About Analytical Reports (ARM). The creation and customization of analytical reports is outside of the scope of this course. 4. Review the profit and loss statement for Computers Inc. for To view the profit and loss by each company's office, select the office from the group menu. To view the consolidated profit and loss, select the Computers Inc. unit. Figure: Profit and Loss report for Computers Inc. for Review the profit and loss statement consolidated for two companies for by selecting the COMPUTERS AND SOFTWARE CONSOLIDATED unit in the group menu. Each amount in the report is the sum of the corresponding amounts for the Computers Inc. and Software Inc. nested units. Figure: Consolidated Profit and Loss report for

52 Lesson 11: Consolidated Reports Review the balance sheet for Software Inc and Computers Inc for : Run the Balance Sheet Software & Computers report (Finance > General Ledger > Reports > Financial Statements) for the period. In the Due to Related row, you can see the total due between the companies, which is $0.11 after you have processed the funds transfer from Computers to Software. Figure: Balance sheet for Software and Computers for You can click the link to get the detailed information on a certain amount in the report. For the Computers Inc. company, the company assets and liabilities are summed up by two branches, WEST and EAST. The asset total of the two branches is equal to the liability total of the two branches of the company. For each individual branch of Computers, EAST or WEST, the asset total is not equal to the liability total because the system is configured so that only the company totals are balanced, while the branch totals aren't necessarily balanced. The Balance Sheet Software & Computers analytical report has been specially designed for the course; for the design notes to the custom reports see Notes About Analytical Reports (ARM). The creation and customization of analytical reports is outside of the scope of this course.

53 Notes About Analytical Reports (ARM) 53 Notes About Analytical Reports (ARM) This information is provided for reference and not a required reading in this course. The following reports have been specially designed for this training course: Balance Sheet Software & Computers: This report shows the balance sheet of the Software Inc. company and the balance sheet of the Computers Inc. company. Profit and Loss Software & Computers: This report shows the profit and loss by each of the Computers company offices, by company, and as consolidated totals. Profit and Loss Budget Performance: This report shows the year-to-date budget execution for the companies. Below are the notes about the structure of the reports and formulas used in the report rows and columns. You can design analytical reports in the Finance > General Ledger > Configuration > Analytical reports group. Analytical Report in the System For each analytical report you create a report definition in the system, which specifies the column set and the row set that constitute the report. You then add the report to the site map with a specific URL that refers to the report definition code. The site map is managed on the Site Map form (SM200520; System > Customization > Site Map). In the site map entry for an ARM report, you can specify any unique ScreenID and leave the default values for other parameters. We recommend that you use unique codes for row sets, column sets, and unit sets to make sure the elements are correctly referred to in report formulas. Analytical reports in the site map ScreenID Title Url GL Balance Sheet Software & Computers ~/Frames/RMLauncher.aspx? ID=CBSS.rpx GL Profit and Loss Software & Computers ~/Frames/RMLauncher.aspx? ID=CPLCONS.rpx GL Profit and Loss Budget Performance ~/Frames/RMLauncher.aspx? ID=CPLBUDG.rpx Detail and Consolidated Data in a Report There are two ways you can construct a report that shows detailed and consolidated financial data: Sum up values in an additional column in a column set. For example, if you have two columns in a report, A and B, you can add a third column C of the Calc type and Value =A+B. In the Balance Sheet Software & Computers report, column D displays the total on the balance sheet accounts of two companies calculated as the sum of the figures in columns B and C. A similar approach is used in the CPLBUDG column set of the Profit & Loss Budget Performance report. In this report, you have a column with actual totals and a column with budget totals for each company. In the third column for each company, you calculate the actual percent of the budget. In particular, you retrieve the consolidated year-to-date balance of the Computers company from the B column, retrieve the year-to-date budget amount from the C column, and calculate the budget performance percent in the D column by using the B/C formula.

54 Notes About Analytical Reports (ARM) 54 You can hide helper columns from which you calculate the needed values by setting the Printing Control property of these columns to Hidden. Sum up values in a unit set. The PLCONS unit set defines the hierarchy of consolidated figures for the profit and loss report. The PLCONS unit set is specified for the CPLCONS report definition of the Profit and Loss Software & Computers report. In this unit set, the top-level ALL unit sums up values from two underlying units referred to by their unit code in the formula: =@CONS+@SOFT. You calculate the sum in the consolidating unit because the child values are selected from different ledgers. To get a total aggregated by entire ledger, you can specify the ledger in the data source of the unit as it is specified for the CONS unit. This unit retrieves consolidated data from the ACTUALCOMP ledger, which is used for two branches of the Computers company. To select the data of a particular branch, you specify the branch and the ledger for the each of the child nodes of the CONS unit, for the EAST and WEST nodes. A child node does not inherit any data source parameters from the parent node, therefore you specify the ledger along with the branch. In the CPL column set, you insert the unit text description into the report with the expression ='Profit & Loss '+ IsNull( If the report is prepared for a certain branch, the system inserts the branch name into the report, otherwise the report is consolidated and the system inserts the description of the unit for which the report is prepared. String Format for Amounts, Percents, Date, and Time For any values except for textual descriptions, you have to format a string to display the value. Below are some examples of custom format strings for amount, percent, and date. For example, in the CPLBUDG column set of the Profit & Loss Budget Performance report, you can see the following formats of column values: In the YTD (B) column, the #,##0.00 format denotes rounding of the amount to hundreds with the period (.) used as the decimal separator. In the % Budget (D) column, the #,##0% format makes the column show only the integer part of the percent while the decimal part is hidden. For the report date, you specify the expression Format( '{0: MMMM d, yyyy}',report.getperiodenddate(@startperiod) ), according to which the system takes the date from report parameter and displays the date in the specified format. For more information about constructing expressions like #,##0.00 that define the string format, see the documentation about custom format strings in.net Framework. Data Sources and Values To retrieve an amount posted to a general ledger account, you select the GL type of the row or column. In Data Source (see the image below), you specify the condition under which the amount should be retrieved and select the amount type, such as the ending balance or turnover. The aggregation, the range of accounts and subaccounts, and the ledger from which you take the data are all specified in Data Source.

55 Notes About Analytical Reports (ARM) 55 Figure: Retrieving amount by specifying Data Source Alternatively, you might need to calculate something directly in the report from already retrieved data or from input parameters. In this case, you select the Calc type of the row or column and specify the calculation expression in Value. A possible situation when you specify the Value is when you want to sum up columns or rows in the report, or, when you want to show the report date or text caption. In Value, you can use input parameters and formulas, but you cannot assign values to the input parameters, because they are selected by the user who runs the report. The input parameters are configured for the report in the report definition. Notice that for the calculated row or column, you do not specify Data Source.

56 Notes About Analytical Reports (ARM) 56 Figure: Calculating gross profit by specifying the calculation expression Consider an example: In the CPLBUDG column set of the Profit and Loss Budget Performance report, you retrieve the actual and budget figures from the ACTUALCOMP and BUDGET ledgers for the Computers Inc. company. Columns B and C, to which you retrieve the amounts, have the GL type and the ledger and the amount type are specified in their data source. In the third column, C, you calculate the budget performance by specifying the =B/C expression in Value of the column that has the Calc type. Range of Accounts and Subaccounts for a Row, Column or Unit To specify a range of accounts and subaccounts for a row, column, or unit, you can use the following techniques: Specify a range of accounts by listing the accounts explicitly: For example, in the CPLBUDG row set, the Advertising expense row shows the amount posted to the account. The Office Expense row shows the sum of amounts posted to the and accounts. You can list the accounts and the account ranges in the Start Account field of the data source separated by commas, with the start account and end account of a range separated by a colon. For example, the :755000, range includes all accounts between and and the account. Specify a range of accounts by using a mask: For non-segmented general ledger accounts, you can use the question mark (?) as a wildcard character that means any symbol at this position. If you specify the account mask, the row or column will include all accounts that match the mask.

57 Notes About Analytical Reports (ARM) 57 For example, the 74?000,75?000 range includes all accounts that start with 74 or 75 and end with 000. If you specify overlapping ranges of accounts for the row set, column set, and unit set, the system takes the intersection of ranges. If you have the following rows and columns in the report, the amount in the All Phones row and the Devices column will include only the and accounts that is, the intersection of masks 420??? and???010, and 430??? and???020. In the example, the account is not segmented. Intersection of overlapping ranges for accounts Columns Rows Devices Accessories???010???020 iphone 410??? Android 420??? All phones 420???-430??? , , Specify an account class in a row: The row will display the sum aggregated by all accountsubaccount pairs where the account is assigned to the specified account class. For example, in the CPL row set of the Profit and Loss Software & Computers report, the Bank Expenses row aggregates the amounts on all accounts of the EXBANK account class. Specify a range of subaccounts by using a mask: For subaccount segments that have the Alpha, Numeric, or Alphanumeric edit mask, you can use a blank ( ) as a wildcard that means any symbol at this position. For subaccount segments that have the Unicode edit mask, you can use either a blank ( ) or question mark (?) as the wildcard. In this course, all subaccount segments have the Unicode edit mask. In the CPLBUDG row set, the Consulting row includes all subaccounts that match the 000-CO- mask, such as 000CO-CA, 000-CO-DC, and 000-CO-00. Alternatively, you could specify the mask with the question marks as wildcards, as with 000-CO-??. You can take an intersection of ranges by subaccounts. For example, suppose you record the sales of services to two accounts, and You can construct a report with separate columns for each type of service provided by the company. You specify the account and subaccount mask for each row and specify the subaccount mask for each column, as shown in the table below. The system will aggregate the figures in the report by intersection of the subaccount masks specified in the rows and columns. Thus, in the Services - Consulting column, the sales for the account will include the sales in all regions that have been recorded with different subaccounts such as 000-CO-CA, 000CO-DC, and 000-CO-AZ, aggregated into one total by using the 000-CO-?? mask. Intersection of overlapping ranges for subaccounts Columns Services - Consulting Services - Training Rows 000-CO-?? 000-TR-?? Sales , 000-??-?? , 000-CO-?? , 000-TR-?? Sales ,000-??-?? , 000-CO-?? , 000-TR-?? Specify the condition for auto-expansion of a row: In the data source of a row, you can specify a range of accounts or subaccounts and select the expansion mode that is, whether the row should be displayed as multiple rows, each of which correspond to one account or subaccount from the specified range. If you use auto-expansion of a row, in the Row Description field, you can select the source of the row description that will be displayed for each line of the expanded set.

58 Notes About Analytical Reports (ARM) 58 In the CPLBUDG row set, the Salaries row uses the account and is auto-expanded by the subaccount that match the??? mask. This mask includes the following subaccounts: ADM-00-00, DEV-00-00, SAL-00-00, CON-00-00, and The Row Description of each line of the auto-expanded row is set to Description-Code (see the image below) that makes the system display the subaccount description that you can specify on the Subaccounts form (GL203000; Finance > General Ledger > Configuration > Manage) and the subaccount code. (If you expand a row by account, the code is the account number). For the five subaccounts listed above, the descriptions have been specified on the Subaccounts form for use in the reports. Because the subaccount is not used with the Salaries account, this line will always be empty and you select the Suppress Empty check box for the 0210 row in the row set to hide the line in the report. Figure: Configuring auto-expanding the row by subaccounts Specify the condition for auto-expansion of a unit: To auto-expand a unit, you can specify a range of accounts or subaccounts in the data source of a unit and select the expansion mode that is, whether the unit item in the tree should be displayed as multiple subitems, each of which corresponds to one account or subaccount from the specified range. When the Expand option is enabled for a unit, the system automatically adds all matched subaccount or account combinations to the tree view. If you want to expand all combinations of a segment, use the? wildcard character. If you want to expand a specific segment only, use a * wildcard character. For example, if you define the following Start Sub value in the system: ADM-??-**, the system will generate the following units in the tree view: ADM-00-, ADM-TR-, ADM-CU-, ADM-SU- and ADM-CO-. Each unit will contain the sum aggregated under each of these expanded units. If you specify ADM-??-?? instead, the system will add all possible combinations that start with ADM to the tree view. To be able to enter special characters in the start and end fields of the data source, the segmented key must be defined as Unicode (alphanumeric segmented keys do not support wildcards). Calculations in a Column Based on the Total of Rows You can calculate an expression in a column based on the total of a group of rows. In the Profit and Loss Software & Computers report, the % YTD Total column shows the percent that constitutes the

59 Notes About Analytical Reports (ARM) 59 amount in the row with respect to the row with the total amount of the group of rows. For example, if the year-to-date salaries expense is $100,000 while the total operating expense is $200,000, the % YTD Total of the salaries expense is $100,000/$200,000 = 0.5; that is, 50%. To calculate the percent of total, the row set and the %YTD Total column is configured in the following way: 1. In the CPL row set, the base row code is specified for each sales and expense row in the Base Row column. Thus, for the Salaries expense row, the base row is 0400, which is the operating expense total. In the same way, the base row applies to every line of the Sales - Details automatically expanded row. The Total Sales base row is specified for the 0100 Sales - Details row. 2. In the CPL column set, the % YTD Total (B) column is calculated as the percent of the base row value. In the column's Value, the base row is referred to by parameter in the calculation expression: =B/Value(@BaseRowCode, 'B'). For each row, the expression returns its value in the B column divided by the value in the B column of the base row. Independent Sorting of a Range of Rows In the Profit and Loss Software & Computers report, three groups of rows are sorted in descending order independently from one another. For each group of rows, the sorting expression is added to the CPL row set in an additional row of the Sort type with the value: =SORTD('0100','0100','B'): Sorting of the automatically expanded sales articles in =SORTD('0300','0345','B'): Sorting of expense articles in descending order =SORTD('0170','0170','B'): Sorting of the automatically expanded other revenue articles descending order in descending order In every report that uses the CPL row set, the listed groups of rows will be sorted as specified. If there is no B column in the column set of a report, sorting is ignored. For sorting in ascending order, you can use the SORT() function for example SORT('0100','0100','B') to sort sales articles ascending. Formulas with Division In the CPLBUDG column set of the Profit & Loss Budget Performance report, the % Budget column for the Computers company is calculated by the simple B/C formula, where each actual figure B is divided by the budget figure C. In the formula, you don't have to check C for zero because if C is zero, the system doesn't show any error and returns a zero amount in the row. In previous versions of Acumatica ERP, you had to check every denominator in a formula for zero by using the following expression: IIf(C<>0, (B/C), 0); now you can use simple expressions. Overlapped Data Sources and Values If the Data Source or Value overlap in a row and a column that are used in the same report, the system will use the settings of the row. For example, if you have specified the account for a row and the account for a column and run the report that uses the row set and the column set with these items, the system will retrieve the data for the account taken from the Data Source of the row. The same logic applies to all parameters of the Data Source, including ledger, branch, account, subaccount, periods, and year and period offsets. For example, suppose a column has a -1 year offset specified in the Data Source, and a row has a 0 year offset in its Data Source. If the column and the row are used in the same report, the system will apply the year offset of the row, which is 0. If the year offset is empty for the row and -1 for the column, the system will apply the year offset of the column, which is -1.

60 Notes About Analytical Reports (ARM) 60 If a parameter overlaps between the unit, row, column, and report definitions, the system uses the parameter specified for the unit (if any). If the parameter is not specified for the unit or there is no unit set in the report, the system takes the parameter of the row. If the parameter is not specified for the row, the system uses the parameter of the column. If the parameter is specified in neither the unit, row, nor column of the report, it is taken from the report definition (if any).

61 Review Questions 61 Review Questions Answer the following questions to prepare yourself for the certification test: The Inter-Branch Transactions feature is enabled in the system. What does that mean? How can you implement automatically balanced transactions between branches? How can you view the consolidated trial balance of a company that consists of two branches? Take the Test Now take the online test Certification Test 2: Transactions Across Companies at Acumatica University.

62 Part 3: Income and Expense Classification by Subaccount 62 Part 3: Income and Expense Classification by Subaccount In this part of the course, you will see examples of subaccount usage in documents. You will learn to configure and use automatically combined subaccounts in Accounts Payable and Accounts Receivable documents. You will also review the trial balance that shows the account balances split by subaccounts. As a result of the lessons of this part, you will have configured the subaccount mask that will be used in the Accounts Receivable documents. The lessons of this part should be completed on the F200Init database. You can continue to use the database where you have completed the lessons of the previous part.

63 Company Story: Subaccounts in Documents 63 Company Story: Subaccounts in Documents You have already configured the subaccount structure for companies as described in Lesson 3: Subaccounts. In this part, you will do the following: 1. Process a transaction of salary payment to employees of the administration and consulting departments in two offices of Computers Inc. for Then you will review how expenses are displayed by subaccounts in the trial balance. 2. Configure automatically combined subaccounts for Accounts Receivable documents and see how the subaccounts are combined in invoices.

64 Lesson 12: Subaccounts in General Ledger Transactions 64 Lesson 12: Subaccounts in General Ledger Transactions In this lesson, you will enter and post the transactions of salary payment to employees of the administration and consulting departments in two offices. Do the following: On the Journal Transactions form (GL301000; Finance > General Ledger > Work Area > Enter), create a batch with the following settings: Module: GL Branch: WEST Transaction Date: 1/31/2014 Post Period: Description: Salary payment to departments for Add the following transactions to the batch and release it. Salary payment transactions of the Computers company Branch Account Subaccount Debit Amount Credit Amount WEST (Salaries Expense) ADM WEST (Salaries Expense) CON EAST (Salaries Expense) CON WEST (Checking Account) You can specify the default subaccount to be inserted into the transactions that you enter by using the Journal Transactions form (GL301000). To use the default subaccount for a particular account, specify this subaccount in the Default Subaccount box on the General Ledger Preferences form (GL102000) and select the Use Default Sub check box for the account on the Chart of Accounts form (GL202500). 3. For the WEST branch, review the trial balance for broken down by subaccounts. To do this, log in to the WEST branch and run the Trial Balance Detailed report (GL632500; Finance > General Ledger > Reports > Balance) with the following parameters: Ledger ID: ACTUALCOMP Branch: WEST Financial Period:

65 Lesson 12: Subaccounts in General Ledger Transactions 65 Figure: Trial Balance Detailed for the WEST branch for The balance of the Salaries Expense account is broken down by subaccounts. Similarly, you can review the detailed trial balance for EAST. Along with the detailed trial balance, you can also use the Account by Subaccount form (GL403000; Finance > General Ledger > Work Area > Explore) to analyze the account balance and turnover by subaccounts for the selected account and branch. Also, you can customize the profit and loss analytical reports to view the figures broken down by the needed subaccounts.

66 Lesson 13: Combined Subaccounts in Documents 66 Lesson 13: Combined Subaccounts in Documents You can use automatically combined subaccounts for Accounts Payable and Accounts Receivable documents to speed up data entry and reduce possible errors. The system can compose a subaccount from source segments specified on the Accounts Payable Preferences form (AP101000) or Accounts Receivable form (AR101000) respectively. To use automatically combined subaccounts in documents, you have to specify the combined subaccount mask for the Accounts Receivable and Accounts Payable modules, and initialize the subaccount for the source records of the segments. On the Accounts Receivable Preferences form (AR101000), the combined subaccount mask is specified in the Combine Sales Sub. from box. You can press F3 in the box to view the available mask symbols: C: Branch E: Employee I: Non-stock item L: Vendor location or customer location If the Business Account Locations feature is off (as in our course), then the customer or vendor record is used as the value source if you specify L in the combined subaccount mask. P: Project (if you use project accounting; for Accounts Payable only) T: Project task (if you use project accounting; for Accounts Payable only) S: Salesperson (for Accounts Receivable only) By default, the combined subaccount mask is set to L and the system inserts the customer's sales subaccount or the vendor's expense subaccount into a document. Suppose that you want to combine the sales subaccount in Accounts Receivable documents by using another rule: the first two segments should be taken from the non-stock item that is selected in a document line (if any), and the last segment should be taken from the customer account. Therefore, you need to specify III-II-LL in the Combine Sales Sub. box on the Accounts Receivable Preferences form (AR101000). You also need to specify the sales subaccount for non-stock items and customer accounts. In this lesson, you will see how to configure and use automatically combined subaccounts in Accounts Receivable documents. In the example presented in this lesson, you will use the combined subaccount that is composed from segments taken from the non-stock item selected in a document line and from the customer's sales subaccount. Proceed as follows: 1. On the Accounts Receivable Preferences form (AR101000; Finance > Accounts Receivable > Configuration > Setup), in the Combine Sales Sub. box, type III-II-LL. The first two segments of the combined subaccount will be taken from the non-stock item (III-II in the mask), and the third segment is taken from the customer account (LL in the mask). 2. Configure the sales subaccount for the source records as follows: a. On the Non-Stock Items form (IN202000; Finance > Accounts Receivable > Work Area > Manage), for the SUPPORT item, enter the 000-SU-00 sales subaccount in the Sales Sub. box on the GL Accounts tab and save the changes. b. On the Non-Stock Items form (IN202000), for the CONSULT item, enter the 000-CO-00 sales subaccount in the Sales Sub. box on the GL Accounts tab and save the changes. c. On the Customers form (AR303000; Finance > Accounts Receivable > Work Area > Manage), for the C customer (YY Studio), enter CA in the Sales Sub. box on the GL Accounts tab and save the changes. 3. Select SOFT as the current branch. 4. On the Invoices and Memos form (AR301000; Finance > Accounts Receivable > Work Area > Enter), create an invoice for the support and consulting services delivered to the C customer and specify the following settings: Type: Invoice

67 Lesson 13: Combined Subaccounts in Documents Customer: C (YY Studio) Terms: 30D Date: 1/20/2014 Post Period: Description: Support and consulting services On the Document Details tab, add a document line, and select the SUPPORT item in the line. The 000-SU-CA subaccount has been automatically inserted into the document line (you can change this subaccount, if needed). The system has composed the sales subaccount according to the subaccount mask specified on the Accounts Receivable Preferences form (AR101000). The first two segments of the combined subaccount are taken from the non-stock item (III-II in the mask), and the third segment is taken from the customer account (LL in the mask). 6. Add two lines with the CONSULT item, and add one more line without an item selected, so that the invoice has the document lines shown in the table below. If you do not select an item in the document line, the system inserts the sales subaccount specified for the customer (if any). The invoice details with automatically combined subaccounts 7. Branch Inventory ID Ext. Price Account Description Subaccount SOFT SUPPORT Sales Consulting Services 000-SU-CA SOFT CONSULT Sales Consulting Services 000-CO-CA SOFT [N/A] Sales Consulting Services CA Release the invoice, and review the balance of the account broken down by subaccounts by using the Trial Balance Detailed report (GL632500; Finance > General Ledger > Reports > Balance) for the SOFT branch for (as shown in the following screenshot).

68 Lesson 13: Combined Subaccounts in Documents 68 Figure: Trial Balance Detailed for Software Inc. company for January 2014 In the Accounts Payable module, if you use segment L in the combined subaccount mask, you have to initialize both the expense account and expense subaccount for vendors to make the expense subaccount combined in Accounts Payable documents. Related Links Combined Subaccounts

69 Review Questions 69 Review Questions Answer the following questions to prepare yourself for the certification test: How can you configure subaccounts in the system? How can you make the system combine expense subaccounts in the lines of Accounts Payable documents? How can you make the system combine sales subaccounts in the lines of Accounts Receivable documents? What does it mean when the On-the-Fly Entry check box is selected for the SUBACCOUNT segmented key? Take the Test Now take the online test Certification Test 3: Income and Expense Classification by Subaccount at Acumatica University.

70 Part 4: General Ledger 70 Part 4: General Ledger In this part of the course, you will prepare budgets for the companies of ABC Management for In the first lesson of the part, you will learn how to configure the budget tree, and how to preload and release budget articles. You will also learn to update and distribute budget articles. In the second lesson of the part, you will learn to distribute amounts between general ledger accounts by using different allocation rules. After you complete the lessons of this part, you will have the annual budgets prepared for both companies. You will also have three different allocation rules configured. The lessons of this part should be completed on the F200Init database. You can continue to use the database where you have completed the lessons of the previous part.

71 Company Story: Budgets and Allocations 71 Company Story: Budgets and Allocations The companies want to keep their budgets in the system. Also, the accountants want to know how they can automate the allocation of amounts between general ledger accounts, because they perform regular allocations of expenses by different subaccounts to provide detailed financial reports. Your first task is to prepare the optimistic budget for 2014 for each of the companies: For Software Inc., you will prepare the budget for 2014 from the history of general ledger transactions in For Computers Inc., you will upload the earlier calculated budget for 2014 from the Excel file. And your second task is to learn to create different allocation rules to automate allocations between GL accounts.

72 Lesson 14: Budgets 72 Lesson 14: Budgets In the system, you can prepare annual budgets by branch. To be able to create budgets, you have to configure the budget tree and create a budget ledger. The budget tree is common for all branches. It defines the budget articles that automatically appear in a budget when you create one in the system. To create a budget of the company that consists of more than one branch in the system, you can prepare the budget for one of the branches and then compare the budget figures with the actual figures consolidated by all branches of the company by using an analytical report. You can manually add more articles to the budget, if needed. We recommend that you define the budget tree because it makes easier to prepare budgets and analyze them. However, you can work with plain budgets, which are plain lists of budget articles, without the preliminary configuration of the budget tree. If you use the Purchase Requisitions module of the Distribution suite to process requests for goods and services, you can configure the budget verification of the purchase requests to make the system warn you if the incurred costs exceed the budget amount. For more information, see the Related Links section. In this lesson, you will create the budgets for Software Inc. and for Computers Inc. for the year For Software Inc., you will build the budget from the account balances for For Computers Inc., you will import an earlier calculated budget from an Excel file. Thus, you will perform the following steps: 1. Configuring the budget tree 2. Reviewing the configured budget tree and budget ledger 3. Creating and releasing the Software Inc. budget 4. Creating and releasing the Computers Inc. budget 1. Configuring the Budget Tree Configure the budget tree on the Budget Configuration form (GL205000; Finance > General Ledger > Configuration > Manage) as follows: For the training course, the company name is set to ABC on the Companies form (SM203520; System > Manage > Companies). This name is used for the root node in the budget tree, organization structure tree, and site map; the organization structure tree and site map are outside of the scope of this course. According to the story, ABC Management is the name of the parent company that controls the Software Inc. and Computers Inc. companies. 1. Add the following nodes to the root of the tree (you can view the final budget tree on the screenshot in the next section): Node: Selected, Description: Salaries, Account Mask: Empty, Subaccount Mask: Empty Node: Selected, Description: Sales, Account Mask: Empty, Subaccount Mask: Empty Node: Selected, Description: Rent & Utilities, Account Mask: 74?000, Subaccount Mask:??? The wildcard character,?, means any symbol can be used in this position. The account and subaccount masks specified for the Rent & Utilities node define the articles that can be added to this node. When you create a budget, you can preload articles to this node by the mask. Therefore, you don't necessarily have to define a leaf for every single article in the budget tree. Instead, you can use the account and subaccount mask for a node to define the group of leaves that can be added to the budget. We recommend that you keep the general structure of the budget tree by defining the toplevel grouping nodes and specifying the account and subaccount masks for them. The general structure makes the budget tree flexible so that you can preload the needed articles while preparing a certain budget. When you create a budget, the system automatically adds the nodes

73 Lesson 14: Budgets 73 and the articles to the budget according to the preconfigured budget tree. Once an article has been preloaded from the budget tree, it cannot be removed from the budget, but you can add more articles to the budget that aren't defined in the budget tree. If you specify a fixed list of leaves for a node in the budget tree, where the leaves represent all possible budget articles that can be grouped under this node, leave the account and subaccount mask empty as you did for the Salaries and Sales nodes. 2. Add the leaves to root of the tree as follows: a. Add a leaf for the advertising expense budget. Advertising expense budget leaf Node Account Subaccount Description Account Mask Subaccount Mask Cleared Advertising Expense You have to specify the account-subaccount pair and account-subaccount mask for each leaf in the budget tree. The account and subaccount of the leaf are the ones to which the budget amount is recorded in the system. The account mask and the subaccount mask define the account-subaccount pair or pairs included in the budget article. b. Add a leaf for the aggregated office expense budget article that applies to the office supplies expenses and the repair and maintenance expenses. Because the particular amounts are small, the users generally want to have just one budget article for all of them. If you want to calculate a budget article from the total of a group of account-subaccount pairs, you have to specify the account and subaccount mask of the group in the leaf. By the mask, the system aggregates the historical data under one article when it calculates the budget from history or when calculates the amounts for comparison by using the Budgets form (GL302010). In the chart of accounts, you have the Office Supplies Expense and the Repair & Maintenance Expense accounts that you want to aggregate under one budget article. To aggregate them, you compose the 75???? account mask, which defines the group of these two accounts. To mask any possible subaccounts, you use the???-??-?? expression for the subaccount. Office expense budget leaf 3. Node Account Subaccount Description Account Mask Subaccount Mask Cleared Office Expense 75???????-??-?? On the Budget Tree pane, select the Salaries node and click Preload Accounts on the toolbar. Preload the budget leaves from the Salaries Expense account by the??? subaccount mask: Account from: Account to: Subaccount Mask:??? The system automatically populates the budget tree with all the possible subaccount combinations that match the specified mask. 4. From the Salaries node, remove the generated leaf for because you are not going to post transactions, and keep the budget for the / account-subaccount pair.

74 Lesson 14: Budgets Make the description of the salaries budget leaves more informative: Account: , Subaccount: ADM-00-00, Description: Salaries - Administration Account: , Subaccount: CON-00-00, Description: Salaries - Consulting Department Account: , Subaccount: DEV-00-00, Description: Salaries - Developers Account: , Subaccount: SAL-00-00, Description: Salaries - Sales Department It is useful to add a node title to each leaf because these titles make it easier for users to work with budget articles by using the table view of the Budgets form (GL302010; Finance > General Ledger > Work Area > Enter). 6. Select the Sales node and click Preload Accounts on the toolbar. Preload the budget leaves from the Sales - Consulting Services account with the subaccount mask 000-??-00: Account from: Account to: Subaccount Mask: 000-?? Remove the generated leaf for because you are not going to post transactions, and keep the budget for the / account-subaccount pair. 8. For each sales budget leaf, change the last segment of the subaccount mask to?? to make the system aggregate the amounts that are posted with different last segment values of the subaccount under this single budget article, because the management does not want to keep separate budget articles for sales to different regions. Also, make the description more informative so that you have the following sales budget leaves: Account: , Subaccount: 000-CO-00, Description: Sales - Consulting, Account Mask: , Subaccount Mask: 000-CO-?? Account: , Subaccount: 000-CU-00, Description: Sales - Customization, Account Mask: , Subaccount Mask: 000-CU-?? Account: , Subaccount: 000-SU-00, Description: Sales - Support, Account Mask: , Subaccount Mask: 000-SU-?? Account: , Subaccount: 000-TR-00, Description: Sales - Training, Account Mask: , Subaccount Mask: 000-TR-?? The account mask and the 000-CO-?? subaccount mask that are specified for the Sales - Consulting leaf define the group of the account-subaccount pairs, such as /000-CO-00, /000-CO-CA, and /000-CO-DC. 9. Save the budget tree on the Budget Configuration form (GL205000). 2. Reviewing the Configured Budget Tree and Budget Ledger The budget tree is ready and can be used for preparing budgets. The resulting budget tree looks as shown in the following screenshot. Figure: Root nodes and leaves of the configured budget tree

75 Lesson 14: Budgets 75 Figure: Salaries node of the budget tree Figure: Sales node of the budget tree To be able to create budgets in the system, you have to create one budget ledger or multiple budget ledgers. To a budget ledger, you can post annual budgets of different branches. To prepare two different budgets for the same branch and year (for example, an optimistic budget and a pessimistic budget), you have to create a budget ledger for each budget type. On the Ledgers form (GL201500; Finance > General Ledger > Configuration > Setup), review the budget ledger that has been preconfigured for the training. (The BUDGET ledger has been preconfigured because it is referred to in the Profit and Loss Budget Performance analytical report (GL634300) designed for this course.) 3. Creating and Releasing the Software Inc. Budget To create and release the budget for Software Inc. for 2014, do the following: 1. On the Budgets form (GL302010), switch to table view by clearing the Tree View box, and create a budget with the following parameters: Branch: SOFT Ledger: BUDGET Financial Year: 2014 As soon as you select the year to create a new budget, the system automatically populates the budget with budget articles according to the budget tree configuration and shows the notification message about that. 2. For 2014, prepare an optimistic budget of a 10% increase over the actual figures of the company for 2013 as follows: a. Click Preload Articles on the toolbar and select the following parameters at step 1 of the wizard: Branch: SOFT Ledger: ACTUALSOFT Financial Year: 2013 Multiplier (in %): 110 b. At step 2 of the wizard, leave the selection of all account-subaccount pairs as is. c. At step 3 of the wizard, select Update Existing Articles Only to make the system calculate the amounts for only articles listed in the table, and click Finish.

76 Lesson 14: Budgets 76 The system calculates the budget for 2014 as a 10% increase over the actual figures for 2013 posted under the SOFT branch to the ACTUALSOFT ledger. For each article, the budget amount is aggregated by the account and subaccount mask specified for the article in the budget tree. Thus, the administration salaries budget, which has the ADM subaccount mask in the budget tree, is calculated from the total amount posted to the account with the ADM subaccount. The consulting sales budget, which has the 000-CO-?? subaccount mask in the budget tree, is calculated from the total amount posted to the account with different subaccounts that match the mask, such as 000-CO-CA and 000-CO-DC. The office expense budget article has been calculated as a 10% increase over the total office supplies expense and repair and maintenance expense from each period of In the table, the Amount column shows the planned annual budget amount of every article in the budget. The Distributed Amount box shows the total budget amount distributed by financial periods. In each row in the table, the Amount must equal the Distributed Amount; otherwise, you cannot release the budget article. If the amounts differ, you will see a warning message. d. Click Save, and switch to the tree view of the budget. In tree view, you can see the amounts summed up by grouping nodes. e. In tree view mode, add the budget articles to the Rent & Utilities node: a. Select the Rent & Utilities node, and click Preload Articles on the toolbar (see the following screenshot). Figure: Preloading articles for the Rent & Utilities node b. At step 1 of the wizard, leave the parameters from which the other budget articles have been already built, and click Next. c. At step 2 of the wizard, review the account range and the account mask that have been taken from the Rent & Utilities node in the budget tree, and click Next. d. At step 3 of the wizard, select Load Nonexistent Articles Only, and click Finish. The system adds the articles for the and accounts to the budget. f. Switch to table view and compare the budget for 2014 with the actual figures for Select the following parameters in the budget summary: Compare To Branch: SOFT Compare To Ledger: ACTUALSOFT Compare To Year: 2013

77 Lesson 14: Budgets 77 As soon as you have selected the year, the system shows the figures for this year under each budget article. For example, for the Sales - Consulting budget article, you can see that $368,500 is budgeted, with 10% increase over the $335,000 actual for To hide the compared figures, clear the Compare to Year box and press Enter.

78 Figure: Budget 2014 for the SOFT branch Lesson 14: Budgets 78

79 Lesson 14: Budgets On the Release Budgets form (GL505510; Finance > General Ledger > Processes > Daily), release all budget articles for 2014 for SOFT. Release of a budget article indicates that the budget article has been approved. On release, the budget amounts are posted to the budget ledger under the account and subaccount of the budget article. After release, the budget amounts are available for reports and for comparison with actual figures or other budgets by using the Budgets form (GL302010). On this form, you can amend the budget amounts and compare them with amounts of earlier released articles. Then you can release the new amounts of certain articles to replace old figures in the budget ledger, or roll back the changes in the budget. You can configure user access rights so that only authorized users can view, edit, and release all budget articles or only certain ones. Also, you can give the users access rights to certain nodes, so that the users will have access to only the budget articles under these nodes. In a budget tree, nodes can represent, for example, company departments; thus, you are able to give the users access rights by department to the budget articles by granting the access rights for the corresponding budget nodes. To configure access rights to budget articles, you have to configure user access rights to budget nodes and articles, and then prepare budgets. Notice that user access rights apply to newly configured budgets only. If you have had prepared budgets before configuring user access rights, they remain visible to all users. 4. Review the Profit and Loss Budget Performance analytical report (GL634300; Finance > General Ledger > Reports > Financial Statements) for , which has been specially designed for the course to show the actual and budget figures of each of the companies. Figure: Profit and Loss Budget Performance report for Creating and Releasing the Computers Inc. Budget To create and release the budget for Computers Inc. for 2014, upload the articles from the Excel file as follows: 1. On the Budgets form (GL302010), switch to table view and create a budget with the following parameters: Branch: WEST (you can select either branch of the company) Ledger: BUDGET Financial Year: 2014

80 Lesson 14: Budgets On the table toolbar, click Load Records from File and select the provided BudgetWEST2014.xlsx file. In the wizard, leave the null value empty and map the columns as the system suggests. The system uploads the budget articles from the Excel file (see the following screenshot).

81 Figure: Budget 2014 for WEST preloaded from the Excel file Lesson 14: Budgets 81

82 Lesson 14: Budgets 82 In the Excel file, you have to create a row for each budget article. The articles must match the budget tree that you have configured on the Budget Configuration form (GL205000). From the file, you can import annual budget amounts and budgets amounts by period. 3. On the Release Budgets form (GL505510), release all budget articles for 2014 for WEST. 4. Suppose you want to update the Sales - Consulting budget amount for 2014 for WEST. Do the following: a. Open the WEST budget for 2014 on the Budgets form (GL302010). b. For the /000-CO-00 Sales - Consulting article, change the Amount to $220, You can update the budget for particular periods, but the total budget by periods must equal the annual budget. Therefore, you have to distribute the updated annual amount between the periods of Distribute the updated Sales - Consulting budget in the same proportions as the amount is distributed in the released budget: a. Select the WEST budget for 2014 to get the figures for comparison as follows: Compare to Branch: WEST Compare to Ledger: BUDGET Compare to Year: 2014 b. Select the /000-CO-00 Sales - Consulting article in the table. c. Click Distribute on the toolbar, and select the following distribution parameters: Distribution Method: Proportionally to Compared Values This method is available only if compared values were loaded for the article. Otherwise, you can automatically distribute the article in even proportions only, or distribute the amounts manually. Apply to all articles in this node: Cleared Apply to subarticles: Cleared In the WEST budget for 2014, the system distributes the annual budget amount of the Sales - Consulting article in the same proportions as the amount of the same article is distributed among the financial periods in the released budget. Thus, the updated consulting sales budget for is $18,260.00, which is 8.3% of $220,000 annual. By using the amounts from the compared released budget, 8.3% of $200,000 is $16, Switch to table view, and add the bank charges expense article to the table with the following settings: Account: (Bank Service Charges) Subaccount: Amount: When you add an article in the table view of the budget, it is added to the root node. When you preload a budget article by using the wizard or import an article from an Excel file, it is automatically placed under the grouping node that matches the article by the account and subaccount mask. If there is no such grouping node, the article is placed under the root node. 7. Distribute the bank charges expense budget in even proportions and save the budget. The resulting budget is shown on the screenshot below.

83 Figure: Resulting budget 2014 for the WEST branch Lesson 14: Budgets 83

84 Lesson 14: Budgets 84 The updated budget article and the new one aren't available in the reports yet. (Review the Profit and Loss Budget Performance analytical report for ). You have to release the updated articles to make them available in the reports and for comparison on the Budgets form (GL302010). 8. On the Release Budgets form (GL505510), release the two updated articles in the WEST budget for Review the Profit and Loss Budget Performance analytical report for and check that the WEST budget articles have been updated. For Computers Inc., the new bank service expense article has appeared in the report and shows the $125 amount budgeted for January The company's consulting services sales budget has also been updated to $18,260 for January Figure: Updated Profit and Loss Budget Performance report Related Links Overview of Budgets Budget Verification Configuration Overview of Restriction Groups

85 Lesson 15: Allocations 85 Lesson 15: Allocations Suppose that for faster and easier data entry, a user specifies some expenses in bills to one account or subaccount instead of splitting these expenses by different accounts or subaccounts. Then, on a regular basis, the user runs a general ledger allocation that distributes the expense amounts between the needed accounts and subaccounts. Allocations can be done only between account-subaccount pairs of branches that post to the same ledger. To distribute the amounts, the user has to construct an allocation rule that specifies the accounts (and subaccounts) and the distribution ratio. When the user runs the allocation rule, the system generates an allocation batch that deducts the amounts from one account and posts the distributed amounts to another account according to the allocation rule. The amounts to be deducted are calculated from the source accounts from the source ledger. The amounts can be calculated as the account period to date (PTD) balance or the amount accumulated since the previous allocation. In the allocation batch, the amounts are deducted from the source accounts or contra accounts. By default, the amounts are deducted from the source accounts. Optionally, you can specify the contra accounts and the amounts will be calculated from the source accounts but deducted from the contra accounts instead of the source accounts. The amounts are deducted in the allocation ledger. The deducted amounts are distributed and posted to the destination accounts in proportions specified by the allocation ratio. The distributed amounts are posted in the allocation ledger. The allocation ratio can be fixed for destination accounts or can be calculated dynamically by PTD or year-to-date (YTD) balances of the base or destination accounts. The ratio is calculated from the base accounts or from the destination accounts if the base accounts are not specified. In either case, the ratio is calculated from the base ledger or from the allocation ledger if the base ledger is not specified. You can compose an allocation rule to distribute expenses, and schedule running the allocations regularly at the end of every financial period so that the amounts are automatically and accurately distributed between the accounts and subaccounts based on the specified rule. In this lesson, you will learn to compose allocation rules that distribute amounts between branches, accounts, and subaccounts recorded on your books by using fixed and dynamically calculated ratios. You will complete the following tasks related to allocations: 1. Preparing account balances for allocations 2. Allocating amounts between branches by using a fixed ratio 3. Allocating amounts between branches by using a dynamic ratio of the period-to-date account balances 4. Allocating amounts between subaccounts by using a dynamic ratio of the budget amounts for these subaccounts 1. Preparing Account Balances for Allocations Before you start to make allocations, perform the following steps to prepare the balances of accounts that you are going to use: Make sure that you have the following ending balances of account/subaccount pairs for : WEST: /ADM-00-00, $4000 WEST: /CON-00-00, $2000 EAST: /ADM-00-00, $1000 To do this, on the Account by Subaccount form (GL401000; Finance > General Ledger > Work Area > Explore), review the balance of the Salaries Expense account for the WEST and EAST branches for You can proceed with account balances other than the listed ones; in this case, your allocation batches will differ from the ones described in the allocation examples of this lesson.

86 Lesson 15: Allocations 86 Make a batch for the $2000 payment for the utilities in the Western office of the Computers company to prepare the account balances. You are going to have one record: for the subaccount in the Utilities Expense account, with a $2000 ending balance for To do this, on the Journal Transactions form (GL301000), create and release a batch with the following settings and journal entries: Branch: WEST Ledger: ACTUALCOMP Transaction Date: 1/31/2014 Post Period: Description: Payment for utilities Debit entry: WEST, (Utilities Expense), , Credit entry: WEST, (Checking Account), , On the Account by Subaccount form (GL403000), review the Utilities Expense account balance for the WEST branch for Make sure there is one record for the account/ subaccount / with an ending balance of $2000 for Otherwise, the allocation batch will have the amounts other than ones described in this example. 2. Making Allocations by Using the Fixed Ratio For the Computers Inc. company, distribute the salaries of the administrative staff of the WEST branch between the WEST and EAST branches with the ratio of 3 to 1. Proceed as follows: 1. Select the WEST branch as the current branch. 2. On the Allocations form (GL204500; Finance > General Ledger > Work Area > Manage), create an allocation rule with the following parameters: Allocation ID: [Leave blank (inserted automatically when you save)] Description: Administration salaries by weight Branch: WEST Start Period: End Period: Recurring: Cleared Allocation Method: By Account PTD Distribution Method: By Weight Allocation Ledger: ACTUALCOMP Source Ledger: ACTUALCOMP Last Revision Date: [Leave the current business date, which the system has inserted by default] Start Period and End Period specify the range of financial periods for which the allocation defined by this rule can be executed. To be able to use the allocation rule for every period of the 2014 year, you have specified as the Start Period and as the End Period. To use the allocation rule in the selected financial periods of every year, you can select the Recurring check box. In the example of this course, you want to use the allocation rule only in 2014; therefore, you have cleared the check box.

87 Lesson 15: Allocations 87 The source ledger is the ledger from which the amounts to be allocated are calculated by the account or accounts specified on the Source Accounts tab. The allocation ledger is the ledger in which the amounts are distributed. 3. On the Source Accounts tab, specify the source account from which the allocated amount will be deducted. The source branch, account, and subaccount of the allocation 4. Branch Account Subaccount Contra Account WEST ADM Contra Amount Subaccount Limit Percentage Limit On the Destination Accounts tab, add the account-subaccount pairs for two branches to which the allocated amount should be distributed by using a ratio of 3 to 1. The destination branch, account, and subaccount of the allocation Branch Account Subaccount Weight/Percent WEST ADM EAST ADM If you use the By Percent distribution method, the total percent must be 100. If you the By Weight distribution method, you can use any numbers to define the ratio. 5. Save the allocation rule. 6. On the Run Allocations form (GL504500; Finance > General Ledger > Processes > Recurring), run the allocation process for the period and the 1/31/2014 allocation date. 7. Review (but do not release) the generated batch, shown in the following screenshot. Figure: The allocation transaction distributing amounts by a fixed ratio The system generates the allocation transaction to distribute the amounts by using a ratio of 3 to 1 for

88 Lesson 15: Allocations Making Allocations by Using a Dynamic Ratio of the Period-to-Date Account Balances Reallocate the salaries expense by using another rule: For the Computers company, distribute the salaries of the administrative staff between the company branches in proportions to the salaries of the consultant staff in these branches. Perform the following steps: 1. Select the WEST branch as the current branch. 2. By using the Account by Subaccount form (GL403000), review the balance of the account by subaccounts and branches of the Computers company for Make sure that the initial balances are the same as the balances at the beginning of this lesson, so you can compare your amounts with the results described in the example. 3. On the Allocations form (GL204500), create an allocation rule with the following parameters: Allocation ID: [Leave blank (inserted automatically when you save)] Description: Administration salaries by consult. salaries PTD Branch: WEST Start Period: End Period: Recurring: Cleared Allocation Method: By Account PTD Distribution Method: By Dest. Account PTD Allocation Ledger: ACTUALCOMP Source Ledger: ACTUALCOMP Base Ledger: [Leave empty] The base ledger is the ledger from which the allocation proportions are calculated. You can take the proportions from a ledger of any type (actual, budget, or statistical). To calculate the proportions, the system takes the amounts from base accounts specified on the Destination Accounts tab. If the Base Ledger box is empty, the system calculates the proportions from the amounts in the allocation ledger. 4. On the Source Accounts tab, specify the source account from which the allocated amount will be deducted: The source branch, account, and subaccount of the allocation 5. Branch Account Subaccount Contra Account WEST ADM Contra Amount Subaccount Limit Percentage Limit On the Destination Accounts tab, add the account/subaccount pairs for the branches to which the allocated amount should be distributed proportionally to the amounts on the base branch, base account and base subaccount. The destination branch, account, and subaccount of the allocation Branch Account Subaccount WEST EAST Base Branch Base Account Base Subaccount ADM CON ADM CON-00-00

89 Lesson 15: Allocations 89 If the base branch is not selected, the system uses the destination branch as the base one. 6. Save the allocation rule. 7. By using the Run Allocations form (GL504500), run the allocation process by using the rule for the period and the 1/31/2014 allocation date. 8. Review (but do not release) the generated batch, shown in the following screenshot. Figure: The allocation transaction distributing amounts in proportion of the consultant salaries The amounts are distributed with the ratio of to , which comes from $2000 : $1000 ratio of the amounts with the CON subaccount for the WEST and EAST branches respectively. 4. Making Allocations by Using the Dynamic Ratio of Budget Amounts For the Western office of the Computers Inc. company, distribute the utilities expense by subaccounts in proportions of the total rent and utilities budget articles for : 1. Select the WEST branch as the current branch. 2. On the Allocations form (GL204500), create an allocation rule with the following parameters: Allocation ID: [Leave blank (inserted automatically when you save)] Description: Utilities expense by budget Branch: WEST Start Period: End Period: Recurring: Cleared Allocation Method: By Account PTD Distribution Method: By Dest. Account PTD Allocation Ledger: ACTUALCOMP Source Ledger: ACTUALCOMP Base Ledger: BUDGET This example uses the preconfigured BUDGET ledger of the Computers company.

90 Lesson 15: Allocations On the Source Accounts tab, specify the source account from which the allocated amount will be deducted, as shown in the following table. (You are making the allocation rule for only the Western office of the Computers company; therefore, you specify only the WEST branch in the rule.) The source branch, account, and subaccount of the allocation Branch Account Subaccount Contra Account WEST ???-??-?? Contra Amount Subaccount Limit Percentage Limit The???-??-?? subaccount mask specifies the allocation of the total amount posted to the account and branch with any subaccount. 4. On the Destination Accounts tab, add the account/subaccount pairs to which the allocated amount should be distributed proportionally to the amounts on the base branch, base account and base subaccount. The allocation proportions will be calculated from the total period-to-date amount of the utilities and rent budget articles. The destination branch, account, and subaccount of the allocation Branch Account Subaccount WEST WEST Base Branch Base Account Base Subaccount ADM ADM CON CON WEST DEV DEV WEST SAL SAL You can also use masks to aggregate the amounts on the source or base accounts and subaccounts in the allocation rules. 5. Save the created allocation rule. 6. By using the Run Allocations form (GL504500), run the allocation for the period and the 1/31/2014 allocation date. 7. Review (but do not release) the generated batch, shown in the following screenshot.

91 Lesson 15: Allocations 91 Figure: The allocation transaction distributing amounts in proportion to the budget articles In the batch, the actual amount on the Utilities Expense account (745000/ ) has been distributed by subaccounts in proportions of the rent and utilities budget article posted to the account in the budget of the Computers company. The Computers budget amounts in the account by the ADM, CON, DEV, and SAL subaccounts for the period are $583.34, $1250, $ , and $1250 respectively and have the ratio of to to to (the weights are calculated with high precision). In the allocation batch, the $2000 amount has been split into the $ : $ : $ : $ amounts by the respective subaccounts. If there is a small rounding difference in an allocation batch, the system adds the difference to the greatest amount among the journal entries of the batch.

92 Review Questions 92 Review Questions Answer the following questions to prepare yourself for the certification test: How can you populate a new budget with amounts? How many budgets can you create for a company? Which distribution methods can you use in general ledger allocations? Take the Test Now take the online Certification Test 4: General Ledger at Acumatica University.

93 Part 5: Cash Management 93 Part 5: Cash Management In this part of the course, you will configure the cash accounts for processing bank deposits and unrecognized payments. Also, you will import the bank statement for one of the cash accounts to match the transactions in the bank statement with the transactions in the system and perform the bank reconciliation of the cash account. The lessons of this part should be completed on the F200Init database. You can continue to use the database where you have completed the lessons of the previous part.

94 Company Story: Cash Management 94 Company Story: Cash Management The companies want to execute their cash management tasks in the system that is, execute the following tasks: process the deposits of customer payments to bank accounts, and perform the bank reconciliation for companies' checking accounts. Also, the companies want an easier way of processing unrecognized payments. The companies use the following cash accounts, which are configured in the system: SOFT: The checking account of the Software Inc. company COMP: The checking account of the Computers Inc. company COMP: The petty cash account of the Computers Inc. company SOFT: The petty cash account of the Software Inc. company In our simplified examples, the accountant of the Computers Inc. headquarters can manage all cash accounts, process transactions to and from them, perform the bank reconciliation, and process the bank deposits to the accounts. Therefore, you will do these processes for the WEST current branch. Your first tasks of this part are to configure the cash accounts for bank deposit processing, and to learn the bank deposit processing and the processing of unrecognized payments by using the Computers company's checking account (the COMP cash account in the system). When you process bank deposits and unrecognized payments, the payments are first recorded to a clearing account, and then moved to the destination account. Since both companies use the same currency, they can use one clearing account for processing bank deposits and one clearing account for processing unrecognized payments for all checking accounts. Your last task of this part is to learn the process of bank statement import and bank reconciliation through the example of bank reconciliation for the Software company's checking account (the SOFT cash account in the system).

95 Lesson 16: Bank Deposits 95 Lesson 16: Bank Deposits Suppose that you receive payment checks from customers and deposit them in a batch to your bank account. In the bank statement, these checks will appear as a single deposit in the cash account. It is easier to reconcile a bank deposit transaction in the cash account with the bank statement than to reconcile multiple Accounts Receivable payment transactions in the account. Consider the following example of processing customer payments of $100 and $200 that you then deposit to the bank account. First you process the AR payments to the clearing account (asset account). The system generates the following transactions when you release the payment: Clearing account, Dr $100 Accounts Receivable, Cr $100 Clearing account, Dr $200 Accounts Receivable, Cr $200 Then you process the bank deposit with these payments from the clearing account to the needed cash account. The system generates the following transactions when you release the bank deposit: Cash account, Dr $300 Clearing account, Cr $300 After you have processed the bank deposit in the system, there is one deposit transaction in the cash account instead of two payment transactions (one of $100 and one of $200). One $300 transaction can be easily reconciled with the deposit transaction that will appear in the bank statement. You can add vendor refunds, as well as customer payments, to the bank deposit In this lesson, you will configure the cash accounts of the Computers company to be able to process the bank deposits to the cash accounts in the system. Suppose that you have received three payments from customers: a $2000 check from Jevy Computers (received on 1/1/2014), $1100 in cash from Brass Key Bar (received on 1/15/2014), and a $3000 check from Silver Springs Water (also received on 1/15/2014). In the first example, you will make a simple deposit of customer payments to the checking account of the company on 1/15/2014. The second example of the lesson (which corresponds to the fourth task of the lesson) is optional: It explains how to process a bank deposit with automatically calculated bank charges, as well as a cash drop from cash on hand to the deposit. Thus, in the lesson, you will perform the following tasks, which are described in greater detail below: You can add vendor refunds, as well as customer payments, to the bank deposit 1. Configuring the cash accounts for bank deposit processing. 2. Entering customer payments to the clearing account. 3. Making a deposit of two checks received from customers. 4. (Optional) Making a deposit that includes automatically calculated bank charges and a cash drop. 1. Configuring Cash Accounts for Bank Deposit Processing To configure the cash accounts for bank deposit processing, you have to specify a clearing account for the cash account to which you need to process bank deposits. To configure the accounts, proceed as follows: 1. Create the COMP clearing cash account and configure the COMP checking account for bank deposit processing:

96 Lesson 16: Bank Deposits 96 a. b. On the Chart Of Accounts form (GL202500; Finance > General Ledger > Configuration > Manage), create the Undeposited Payments asset account with the following settings: Account: Account Class: CASHASSET Type: Asset Active: Selected Description: Undeposited Payments On the Cash Accounts form (CA202000; Finance > Cash Management > Work Area > Manage), create the COMP clearing cash account, for use for both companies, with the following settings: Cash Account: COMP Account: Undeposited Payments Cash Subaccount: Branch: WEST Description: Undeposited Payments Clearing Account: Selected Restrict Visibility with Branch: Cleared One clearing account can be used for a group of cash accounts in the same currency, including the cash accounts of different branches. In this case, however, the COMP clearing account will be used for payments to be deposited to just one cash account: COMP. c. d. Specify the COMP clearing account as the allowed cash account for the CHECK and CASH payment methods for use in the Accounts Receivable module as follows: a. On the Payment Methods form (CA204000; Finance > Cash Management > Configuration > Setup), select the CHECK payment method, and on the Allowed Cash Accounts tab, add the clearing account to the table. b. On the Payment Methods form (CA204000), select the CASH payment method, and on the Allowed Cash Accounts tab, add the clearing account to the table. Do the following to specify the clearing account for the COMP - Checking Account, to which you will deposit funds: a. On the Cash Accounts form (CA202000), select the COMP cash account. b. On the Clearing Accounts tab, add the COMP account to the list, and save the changes. For a cash account, you have to specify the clearing account (or accounts) from which the payments can be deposited to the cash account. Thus, you have specified the COMP clearing account to be able to deposit funds from the COMP clearing account to the COMP cash account. 2. Entering Customer Payments to the Clearing Account Enter the customer payments that you will deposit to the bank account as follows: Select the WEST branch as the current branch.

97 Lesson 16: Bank Deposits 97 On the Payments and Applications form (AR302000; Finance > Accounts Receivable > Work Area > Enter), create and release the customer payments to be deposited to the COMP Checking Account: The $2000 check from Jevy Computers (C ), which should have the following settings: Type: Payment Customer: C (Jevy Computers) Payment Method: CHECK Application Date: 1/1/2014 Payment Ref.: J Application Period: Cash Account: COMP (Undeposited Payments) Deposit After: 1/1/2014 Description: Payment Payment Amount: The $1100 in cash from Brass Key Bar (C ), which should have the following settings: Type: Payment Customer: C (Brass Key Bar) Payment Method: CASH Application Date: 1/15/2014 Payment Ref.: B Application Period: Cash Account: COMP (Undeposited Payments) Deposit After: 1/15/2014 Description: Payment Payment Amount: The $3000 check from Silver Springs Water (C ), which should have the following settings: Type: Payment Customer: C (Silver Springs Water) Payment Method: CHECK Application Date: 1/15/2014 Payment Ref.: S Application Period: Cash Account: COMP (Undeposited Payments) Deposit After: 1/31/2014 Description: Payment, postdated check

98 Lesson 16: Bank Deposits 98 Payment Amount: The amounts are posted to the COMP clearing account, from which they can be deposited to the COMP cash account. 3. Depositing a Customer Check and Cash to the Bank Account Process the bank deposit of two payments to the cash account as follows: 1. On 1/15/2014, the Computers Inc. accountant wants to send the checks and cash (if any) received from customers to the bank to deposit to the COMP checking account. Do the following to create and process the bank deposit in the system: a. Select the WEST branch as the current branch. b. On the Bank Deposits form (CA305000; Finance > Cash Management > Work Area > Enter), create and save the bank deposit for 1/15/2014 with the following settings: Tran. Type: CA Deposit Cash Account: COMP - Checking Account Document Ref.: Deposit Date: 1/15/2014 Fin. Period: Description: Customer payments c. On the Payments tab, click Add Payment to add payments to the deposit. d. In the Add Payment to Deposit dialog, select the two payments that can be deposited on 1/15/2014: the $2000 Jevy Computers payment and the $1100 Brass Key Bar payment. By default, you can select the payments that have been posted to the clearing accounts specified for the cash account and that have a Deposit After date no later than the End Date, which is 1/15/2014. The $3000 Silver Springs Water payment can be deposited after 1/31/2014 and therefore isn't displayed in the dialog. To view the Deposit After date of payments, you can add the hidden Deposit After column to the table in the Add Payment to Deposit dialog. If you set the End Date to 1/31/2014, you will be able to add the Silver Springs Water payment to the deposit. (You don't have to do this in this course.) e. Click Save to add the selected payments to the deposit and to close the dialog. After you have added the payments to the deposit, for each payment selected on the Payments and Applications form (AR302000), you can also view the information about the bank deposit to which the payment has been added in the Batch Deposit Date and the Batch Deposit Nbr. boxes on the Financial Details tab. f. Make sure the Total Amount of the deposit is $3100, and save the deposit. After you have added the payments to the deposit, the deposit is ready for further processing. The Deposit Total is the total of payments added to the deposit, and the Total Amount is the Deposit Total minus the Charge Total (if any). You are going to deposit funds without processing the bank charges right now. To process bank charges that can be taken for deposited checks, you can specify the bank charge amount in the deposit or process the charges later (as soon as they appear in the bank statement for the cash account to which you deposit the funds). For this sample deposit, assume that you don't know the charges and you have decided to process them later. g. Release the bank deposit and review the generated batch (shown in the following screenshot).

99 Lesson 16: Bank Deposits 99 Figure: The batch generated on release of the bank deposit The total amount of the deposit has been moved to the checking account in the system. The deposit transaction is now available for bank reconciliation. 2. On the Cash Account Transactions form (CA303000), select the COMP cash account and review the transactions in the account from 1/1/2014 to 1/31/2014 (see the following screenshot). Figure: Cash transactions in the COMP account for The two payments that have been deposited to the cash account are represented as one CA Deposit transaction, which is convenient for further reconciliation of the cash account with the bank statement. The Receipt column displays the total amount of the deposit, $3100. The postdated check received on 1/15/2014 in the amount of $3000 is not displayed in the table because it hasn't been deposited yet and remains on the COMP clearing account. 4. (Optional) Processing a Deposit with Automatically Calculated Bank Charges and an Additional Cash Drop This additional example, which demonstrates more techniques that you can use for bank deposit processing, is not required for certification. To process a bank deposit that includes automatically calculated bank charges and an additional cash drop (that is, a particular amount of cash, which is deposited to reduce cash on hand) to the bank account, perform the following steps:

100 Lesson 16: Bank Deposits Configure the calculation of bank charges that depend on the payment method in deposits as follows: a. On the Cash Accounts form (CA202000), select the COMP cash account. Suppose that you know that a bank fee of 5% applies to every check that you deposit to the COMP cash account. To specify the charge rate, you have to specify the charge type and the charge rate for each clearing account in the table on the Clearing Accounts tab of this form. The charge type specifies the default account and subaccount to be used in the disbursement cash transaction of the bank charge, which is generated on release of the bank deposit to which the charge rate applies. b. On the Clearing Accounts tab, specify the charge rate for the CHECK payment method so that you have one record in the table (see the following image). This causes the system to automatically calculate the bank charge when you deposit checks to the COMP cash account. Figure: The charge rate for any checks to be deposited from the COMP clearing account to the COMP cash account You can specify different charge rates that apply to deposited payments depending on the payment method. In the example above, you have specified the charge rate that will apply to payments with the CHECK payment method to be deposited from the COMP clearing account to the COMP account. The system will not apply the charge rate to payments with another payment method when you add them to a bank deposit in the system. If you wanted to specify the charge rate for another payment method, you would add one more row to the table on the Clearing Accounts tab. For example, you could specify the 3% rate for CASH payments along with the 5% rate for CHECK payments by making two rows in the table on the Clearing Accounts tab, as shown below. To specify a charge rate that applies to deposited payments regardless of their payment method, in the table on the Clearing Accounts tab, you would add a row for the clearing account, leave the Payment Method column empty and only select the Charges Type and specify the Charge Rate. Thus, you would have one row in the table, as shown below. 2. On 1/31/2014, the Computers Inc. accountant sent the $3000 check and an additional $100 from cash on hand to the bank to deposit these monies to the COMP checking account. Create and process the bank deposit in the system as follows: a. Select the WEST branch as the current branch. b. On the Bank Deposits form (CA305000; Finance > Cash Management > Work Area > Enter), create and save the bank deposit for 1/31/2014 with the following settings: Tran. Type: CA Deposit Cash Account: COMP - Checking Account Document Ref.: Deposit Date: 1/31/2014 Fin. Period:

101 Lesson 16: Bank Deposits 101 Description: Customer payment and cash drop c. On the Payments tab, click Add Payment to add the customer payment to the deposit. d. In the Add Payment to Deposit dialog, select the $3000 check from Silver Springs Water, which can be deposited on 1/31/2014 and click Save to add the selected payment to the deposit. For a particular date, you can review the payments that have been posted to clearing accounts but haven't been deposited yet. To do this, run the Undeposited Payments (CA657000; Finance > Cash Management > Reports > Audit) report. The report shows payments grouped by clearing account. e. On the Charges tab, review the bank charges that have been automatically calculated by the system. The system calculates the bank charge that applies to the deposit at the applicable charge rate specified for the COMP cash account. By using the specified 5% charge rate for payments made with the CHECK payment method, the system has calculated the $150 bank charge on the $3000 amount of the only payment added to the deposit, as shown in the following screenshot. The total charge amount is displayed in the Charge Total box of the deposit summary. The Total Amount box shows the Deposits Total minus the Charge Total that is, $3000 $150 = $2850. Figure: The calculated 5% bank charge for the deposit f. Add to the deposit the $100 cash drop from the COMP cash account (in the example presented in this course, no bank charges apply to deposited cash): a. In the Cash Drop Account box in the summary area, select COMP Cash on Hand of Computers Inc. account. b. In the Cash Drop Amount box, specify c. Click Save. Now the Total Amount of the deposit is the sum of the total payment amount and the cash drop amount minus the bank charges: $ $100 $150 = $2950. g. Release the bank deposit. After release, you cannot edit the bank deposit. If you have released a deposit with a payment added to it by mistake but haven't sent the deposit to the bank yet that is, if there is no such payment in the actual deposit you can void the deposit, release the voided

102 Lesson 16: Bank Deposits 102 deposit, and then create and process the new correct deposit. For more information on processing deposits, see the Related Links section. 3. On the Cash Account Transactions form (CA303000), select the COMP cash account and review the transactions in the account from 1/1/2014 to 1/31/2014, as shown in the following screenshot. Figure: Cash Account Transactions for the COMP account after release of the second deposit Notice that for the second deposit, there is one CA Deposit transaction with the $2950 receipt amount, which is the deposit amount after the bank charges. On the Bank Deposits form (CA305000) for the deposit, the Total Amount of the bank deposit may or may not include bank charges, which you define by using the Separate Charges check box on the Financial Details tab. In the example above, the Separate Charges check box is cleared. The screenshot below demonstrates the same transaction when the Separate Charges check box is selected; notice that the charges are shown in a separate row. For easier reconciliation, you can use either representation of the deposit transaction in the cash account, depending on how the deposit amounts are shown in the bank statement. Figure: The CA Deposit transaction in the cash account when the Separate Charges check box was selected in the bank deposit Related Links Overview of Deposits

103 Lesson 16: Bank Deposits 103 Accounting for Finance Charges Applied to Payments

104 Lesson 17: Unrecognized Payments and Payment Reclassification 104 Lesson 17: Unrecognized Payments and Payment Reclassification You can process unrecognized AR and AP payments to a temporary account and reclassify them later when the customer or vendor information becomes available. When you process an unknown payment (for instance, for $900) and then reclassify it as a payment from a particular customer, the system generates transactions as follows: You initially process the unrecognized payment as a cash transaction to the temporary liability account. The system generates the following transaction on release of the unknown payment: Cash account Dr, $900 Unrecognized payments account Cr, $900 Once you know the identity of the customer, you reclassify the payment as a payment from a particular customer. The system generates the following transaction on the release of the reclassified Accounts Receivable payment: Unrecognized payments account Dr, $900 Accounts Receivable Cr, $900 After you have reclassified the payment, the system records the payment amount to the Accounts Receivable account for the customer. If you reclassify an unknown payment as a payment from vendor, the system generates a vendor refund document in the Accounts Payable module. You can review and edit this document on the Checks and Payments form (AP302000; Finance > Accounts Payable > Work Area > Enter). To process the vendor refund in the system, you have to apply it against an open debit adjustment or prepayment, depending on the reason for the refund. (You have to create and process the appropriate document in the system if it doesn't exist.) On release of the vendor refund that has been reclassified from an unknown payment, the system generates the following transaction so that the AP account balance and the vendor balance are both correct: Unrecognized payments account Dr, $900 Accounts Payable Cr, $900 In this lesson, you will configure the cash accounts for processing unrecognized payments and making payment reclassification. You will process an unknown payment and then reclassify it once the information of the payment sender becomes available. Suppose that while reviewing a bank statement for 1/15/2014 for the COMP cash account, the accountant of the Computers Inc. company detects a wire transfer of $900, received on 1/13/2014, for which the accountant cannot identify the sender. The accountant processes the unknown payment in the system to a temporary liability account. On 1/30/2014, the accountant discovers that the payment was made by the Boulder Couriers Denver customer. The accountant reclassifies the payment as an Accounts Receivable payment from the certain customer in the system, which results in the correct balance of the AR account and the correct balance of the customer. To learn how to work with unrecognized payments and reclassify such payments, complete the lesson steps: 1. Configure a cash account for processing unrecognized payments. 2. Create an unrecognized payment. 3. Reclassify the unrecognized payment. 1. Configuring a Cash Account for Processing Unrecognized Payments Configure the COMP cash account, which will be used for the processing of unrecognized payments, as follows: 1. Create the COMP cash account, to which the amounts of unrecognized payments will be recorded temporarily, by doing the following:

105 Lesson 17: Unrecognized Payments and Payment Reclassification 105 a. b. On the Charts of Accounts form (GL202500; Finance > General Ledger > Configuration > Manage), create the Unrecognized Payments liability account with the following settings: Account: Account Class: OTHCURLIAB Type: Liability Active: Selected Description: Unrecognized Payments On the Cash Accounts form (CA202000; Finance > Cash Management > Work Area > Manage), create the COMP - Unrecognized Payments cash account: Cash Account: COMP Account: Unrecognized Payments Cash Subaccount: Branch: WEST Description: Unrecognized Payments Restrict Visibility with Branch: Cleared In most cases, you need only one cash account for recording unknown payments for a group of cash accounts in the same currency, including cash accounts of different branches. However, if you have cash accounts with visibility restricted to the branch, you have to create dedicated accounts to record unknown payments made to each branch and restrict the visibility of each account to only this branch. c. In the table on the Payment Methods tab, add the WIRE payment method. For the COMP cash account, you have to specify the payment methods that can be used with the cash account. Wire transfers are represented by the WIRE payment method in the system. The COMP cash account will be used to record unknown payments received via wire transfers. 2. On the Entry Types form (CA203000; Finance > Cash Management> Configuration > Setup), create an entry type with the following settings that can be used to create cash transactions for unknown payments in the system and perform payment reclassification: Entry Type ID: UNRECPMT Disb./Recept: Receipt Entry Type Description: Unrecognized payments Module: CA Use for Payments Reclassification: Selected Reclassification Account: COMP After you select the Reclassification Account, the system automatically inserts the default offset account, subaccount and branch into the entry type. 3. On the Cash Accounts form (CA202000), select the COMP cash account. On the Entry Types tab, add the UNRECPMT entry type to the table and save the changes. This allows the use of this entry type for the account.

106 Lesson 17: Unrecognized Payments and Payment Reclassification Creating an Unrecognized Payment On the Transactions form (CA304000; Finance > Cash Management> Work Area > Enter), select the WEST branch as the current branch from which the transaction will originate, and create and release the cash transaction of the $900 unrecognized payment with the following settings: Tran. Type: Cash Entry Cash Account: COMP - Checking Account of Computers Inc. (here you specify the bank account to which the unknown payment was received) Entry Type: UNRECPMT (Unrecognized Payments) Document Ref.: UP Tran. Date: 1/13/2014 Fin. Period: Description: Unrecognized payment Transaction Details, Amount: , Offset Cash Account: COMP (Unrecognized Payments), Offset Subaccount: Upon release, the amount of the unknown payment has been posted to the COMP temporary cash account. At the same time, you can see the unknown payment transaction for the COMP account by using the Cash Account Transactions form (CA303000; Finance > Cash Management > Work Area > Explore); the transaction is available for bank reconciliation. To view the unknown payments that haven't been reclassified yet, on the Cash Account Transactions form (CA303000), you can select COMP - Unrecognized Payments to review the transactions in the temporary account. 3. Reclassifying the Unrecognized Payment Perform the following instructions to reclassify the payment as being from the Boulder Couriers Denver customer: 1. On the Reclassify Payments form (CA506500; Finance > Cash Management > Processes > Daily), select WEST as the current branch from which the reclassified payment will originate, and UNRECPMT as the Entry Type. You can specify the default entry type that is automatically selected on this form. To do this, on the Cash Management Preferences form (CA101000; Finance > Cash Management > Configuration > Setup), in the Unrecognized Receipts Type box, select the entry type you have configured for unknown payments. 2. In the table, select the $900 unknown payment, and specify the customer information for it: Module: AR Customer/Vendor ID: C (Boulder Couriers Denver) 3. On the form toolbar, click Process to reclassify the payment and make the system generate the Accounts Receivable payment from it. 4. On the form toolbar, click View Resulting Document to review the generated Accounts Receivable payment on the Payments and Applications form (AR302000; Finance > Accounts Receivable > Work Area > Enter). The Document Ref. number of the unknown payment becomes the Payment Ref. number of the reclassified payment (which is the customer payment in Accounts Receivable or the vendor refund in Accounts Payable). 5. Release the payment.

107 Lesson 17: Unrecognized Payments and Payment Reclassification 107 The system decreases the customer balance and decreases the AR account balance in the amount of the released payment. 6. On the Cash Account Transactions form (CA303000), select the COMP - Unrecognized Payments cash account from 1/1/2014 to 1/31/2014 (see the following screenshot). Figure: Transactions on the COMP account for You can see the transaction for the unknown payment and the transaction for the reclassified payment. The ending balance of the account should be zero.

108 Lesson 18: Bank Reconciliation 108 Lesson 18: Bank Reconciliation The ability to import bank statements and process bank transactions make bank reconciliation easier. After you have matched the transactions in the bank statement with the transactions in the system, you can perform reconciliation of the cash account as of the bank statement date by using the simple rule the reconciled transactions are the ones uploaded from the bank statement and cleared by using the Process Bank Transactions form (CA306000). Depending on how many transactions are processed, users can perform bank reconciliation as often as needed, such as once a month or at the end of every week. In this lesson, you will learn to perform the bank reconciliation process in the system, which typically consists of the following steps: 1. Uploading the bank statement 2. Processing the bank statement transactions as follows: 3. a. Matching the bank transactions to the existing documents or transactions in the system b. Creating documents in the system based on the bank transactions c. Processing the bank transactions to make the system generate the documents by the specified information and to mark the transactions as Cleared for further reconciliation Preparing the reconciliation statement of Cleared transactions for the bank statement period In this lesson, you will import the bank statements for the SOFT checking account, match the transactions in the system to the imported bank transactions, and create the needed transactions, based on the bank statement records. The lesson consists of the following steps: 1. Configuration of the SOFT cash account for uploading the bank statement from OFX 2. Reconciliation of the cash account transactions with the bank statement for January Optional: Reconciliation of the cash account transactions with the bank statement for February 2014 As you complete the example of bank reconciliation for January 2014 (the second step of this lesson), you will learn the complete bank reconciliation process in the system. In this example, on 2/1/2014, you have received the 1/31/2014 bank statement for the SOFT checking account. You want to check whether all transactions have been accurately processed in the system and in the bank account so you can reconcile the bank statement balance of the account with the cash account balance in the system. For automatic matching of transactions, you will use the unreconciled transactions for December 2013 (see the screenshot below). These transactions have been imported during the data migration and are already provided for you in the training data for this lesson. (The procedure of importing outstanding checks and deposits in transit is described in a further lesson in this course.)

109 Lesson 18: Bank Reconciliation 109 Figure: Unreconciled transactions in the SOFT checking account for December 2013 The example of bank reconciliation for February 2014, performed in the third step of this lesson, demonstrates more ways to process bank transactions, including the following ones: Using rules for auto-matching of repeated transactions that can be recognized by specific information (transaction code, type, description, amount) Matching payments to invoices Creating transactions for unrecognized payments The third step of a lesson is optional and not required for certification. 1. Configuring the Cash Account for Uploading Bank Statements To configure a cash account for bank statement upload, you have to specify the identifier of the account in the bank statement and specify the bank statement upload settings for the Cash Management module: 1. Configure the SOFT cash account for importing the bank statements from OFX. a. On the Cash Accounts form (CA202000; Finance > Cash Management > Work Area > Manage), select the SOFT cash account, and specify the following settings, which are required for import of bank statements from OFX: External Ref. Number: (the bank account number that is specified in <ACCTID> in the OFX file) Statement Import Service: PX.Objects.CA.OFXStatementReader The statement import service is the application service that reads the data being imported. PX.Objects.CA.OFXStatementReader is the service for importing bank statements from OFX files. b. 2. Change the cash account description to MyBank checking a/c Software Inc.. On the Cash Management Preferences form (CA101000; Finance > Cash Management > Configuration > Setup), make sure that the Import Bank Statement to Single Cash Account setting is selected on the Bank Statement Settings tab. If you import one statement or multiple statements for a single cash account from one OFX (or similar format) file into the system, you have to select the Import Bank Statement to Single Cash Account check box and specify the Statement Import Service setting for the cash account. If you import statements for multiple cash accounts from one OFX file, you have to clear the

110 Lesson 18: Bank Reconciliation 110 Import Bank Statement to Single Cash Account check box and specify the Statement Import Service setting on the Cash Management Preferences form (CA101000). For more information about the support for OFX and similar formats, see Support for OFX and Related Formats. Now the cash account is configured for uploading bank statements from the provided sample OFX files. 2. Reconciling the Cash Account With the Bank Statement for January 2014 Upload the bank statement, process the bank transactions and prepare the reconciliation statement for January 2014 as described in the following instructions: 1. Upload the 1/31/2014 bank statement for the SOFT cash account as follows: a. On the Import Bank Transactions form (CA306500; Finance > Cash Management> Work Area > Enter), select SOFT in the Cash Account box. b. Click Upload File and select the provided BankStatement102000SOFT_ ofx file. The system uploads the transactions from the file to the bank statement in the system. The OFX file contains the 1/31/2014 bank statement with transactions in the MyBank checking a/c Software Inc bank account from 1/1/2014 to 1/31/2014. The Statement Date, Start Balance Date, End Balance Date, and the Ending Balance have been imported from the file. The imported transactions look as shown in the screenshot below. Figure: The bank statement transactions The uploaded OFX file becomes attached to the form, and you can download the file by using Files on the form title bar. c. In the Beginning Balance box, enter $123,800.00, which is the previous bank statement balance as of 12/31/2013 (which has been imported into the system during the data migration) and save the imported bank statement. The OFX format doesn't provide the beginning balance in bank statements, so for the first imported bank statement, you have to manually specify the beginning balance of the statement. In the next statements, the system uses as the Beginning Balance the Ending Balance of the previous bank statement. 2. Process the bank transactions as follows: a. On the Process Bank Transactions form (CA306000; Finance > Cash Management > Work Area > Enter), select the SOFT cash account, as shown in the following screenshot.

111 Lesson 18: Bank Reconciliation 111 Figure: Transactions of the SOFT account on the Process Bank Transactions form On this form, you perform clearing of the documents. The left pane displays not-yetprocessed transactions imported from bank statements. The bank transactions that have not been matched to documents in the system are highlighted with bold. You need to review these transactions. The tabs on the right pane show possible matches for bank transactions; you can create documents based on the bank transactions. The Match to Payments tab shows the payments that the system has evaluated as matching the transaction selected in the table on the left pane. The Match to Invoices tab shows the invoices that the system has evaluated as matching the transaction selected in the table on the left pane. On the Create Payment tab, you can create a new document of the appropriate type for transactions with no match. b. On the form toolbar, click Auto Match to run the auto-matching process for the bank transactions. When you run the auto-matching process, the system searches for possible matching payments and for documents to which the payment could apply. If no possible matching payments or documents to apply are found in the system, the system suggests that you create a payment. To find the matching payments for a bank transaction, the system filters the cash account transactions by the specified Match Settings and calculates the match relevance for the possible candidates. The relevance shows how similar the bank transaction is to one cash account transaction or multiple transactions in the system. The transactions are compared by three factors: the reference number, the transaction date (document date), and the payee name (if any). The candidates with high relevance are recognized as the best candidates and matched automatically. In the following screenshot, you can see that for the $2300 transaction, the system found three matching payments. Figure: Auto-matched transactions for the $2300 payment For each bank transaction, the Match to Payments tab shows the transactions that could match the bank transaction. For the $9000 deposit that appeared in the bank statement, the system has found only one possible match, which is the $9000 GL entry posted to 12/31/2013. Because the Match Relevance of the candidate is high (0.896), the system has determined that the entry is the best match for the deposit transaction from the bank statement.

112 Lesson 18: Bank Reconciliation 112 Figure: Auto-matched transaction for the $9000 deposit The system also searches for outstanding documents. To find a document to which the payment could apply, the system compares the payment amount with the amount of any outstanding documents with the same transaction sign (receipt or disbursement). Thus, for the receipt payment of $8500, the system has searched for open Accounts Receivable documents that have an open balance of exactly $8500. There are no such documents in the system; therefore, the Match to Invoices tab is empty for this transaction. The bank transactions that have no matches in the system are marked with the sign. For these transactions, the system suggests that you create the payment, so on the Create Payment tab of the right pane, the Create check box is selected. On the Import Bank Transactions form, you can edit the information in a bank statement transaction until the transaction is matched and processed by running Process Matched Lines on the Process Bank Transactions form. After the auto-matching process is done, the non-bold bank transactions become excluded from the next run of the auto-matching process. To re-run the auto-matching process for these transactions, click Clear Match for a certain transaction or click Clear All Matches to clear matches for all transaction at the same time, and click Auto Match again. c. Create the documents based on the bank transactions that haven't been matched to any existing ones as follows: a. You recognize the $8500 bank transaction as a payment received from the Kamm System France customer. It can be a partial payment for one of the customer's invoices. Proceed as follows to create the payment in the system and match the payment to the invoices (if any): a. Select the $8500 receipt bank transaction in the table. b. On the Create Payment tab, specify the following settings to create the payment in the system and apply the payment to the customer's outstanding invoice: Create: Selected Module: AR Business Account: C Kamm System France Payment Method: WIRE Invoice: INV000015, Amount Paid: The payment will be created during the processing of the matched lines on the Process Bank Transactions form (CA306000). c. Save the changes.

113 Lesson 18: Bank Reconciliation 113 The $8500 payment is no longer marked with the sign because you have specified the information from which the system will create the document when you run bank transaction processing. b. Do the following to process the $50 bank fee as a disbursement cash transaction: a. Select the $50 bank service fee transaction in the table. b. On the Create Payment tab, specify the following settings to create the cash transaction in the system: c. Create: Selected Module: CA Entry Type ID: BANKCHARGE Save the changes. The $50 bank service fee transaction is no longer marked with the sign because you have specified the information from which the system will create the document when you run bank transaction processing. d. To process the bank transactions in preparation for reconciliation, click Process Matched Lines on the form toolbar. The system creates AR and AP payments with applications (if any), and cash transactions based on the specified information. The system creates the documents and transactions based on the bank transactions for which you have specified the information, releases them, and selects the read-only Cleared check box for every created document and transaction. Once processed, the bank transactions are excluded from future processing of matched lines and no longer appear on the Process Bank Transactions form (CA306000). The results of the bank transaction processing cannot be reverted or changed. e. Press ESC to refresh the information on the Process Bank Transactions form (CA306000). Notice that the processed bank transactions no longer appear on the form. f. On the Import Bank Transactions form (CA306500), select the bank statement for January 2014, and review the transactions. You can see that all transactions have been processed; for these transactions, the Processed check box is selected. Find the cash transaction created from the $50 bank fee transaction in the Cash Management module, and make sure the transaction has been released. Find the $8500 payment received from Kamm System France customer in the Accounts Receivable module. Make sure that the payment has been applied to the customer's invoice and that both the payment and the application have been released. 3. Prepare the reconciliation statement for January 2014 as follows: a. On the Reconciliation Statements form (CA302000; Finance > Cash Management > Work Area > Enter), select the SOFT cash account. b. Specify the following settings and save the reconciliation statement: c. Reconciliation Date: 1/31/2014 Statement Balance: Select the Reconciled check box for the transactions that have the Cleared check box selected.

114 Lesson 18: Bank Reconciliation 114 Figure: Reconciled transactions in the reconciliation statement You can select and clear the Cleared check box for transactions until they are involved in bank transaction processing on the Process Bank Transactions form (CA306000). After you have processed a bank transaction, the Cleared check box is selected and read-only for the corresponding document or transaction in the system. Therefore, once you have processed all transactions from a bank statement, reconciliation with the bank statement becomes easy: You select the Reconciled check box for all transactions that have the Cleared check box selected in the reconciliation statement, and the bank reconciliation is complete. The cash account balance in the system isn't affected by the result of the processing of bank transactions. The Reconciled Balance is equal to the Statement Balance and you can release the reconciliation statement. d. Save and release the reconciliation statement. As soon as you release the reconciliation statement, the system updates the last reconciliation date, from which the next reconciliation statement will be calculated. The released reconciliation statement contains only transactions selected for the statement, and these transactions don't show up for reconciliation in the next reconciliation statements. The cash account balance in the system isn't affected by reconciliation statements. You can review the history of reconciliations for a certain cash account on the Reconciliation Statement History (CA302010; Finance > Cash Management > Work Area > Explore) form. You can void a reconciliation statement that is incorrect. However, you can void and correct only the last reconciliation statement in a sequence. To correct an old reconciliation statement, you have to void all reconciliation statements that have been released after the needed one. For example, if it is necessary to correct the March reconciliation statement after the April reconciliation statement has been released, you have to void both the March and April statements, correct and release the March reconciliation, and redo the April reconciliation. When you void a reconciliation statement, the transactions still have the Cleared check box selected. 3. Optional: Reconciling the Cash Account With the Bank Statement for February 2014 This additional example demonstrates more techniques that you can use for processing of the bank transactions; completion of this example is not required for certification.

115 Lesson 18: Bank Reconciliation To allow the use of the UNRECPMT entry type for the SOFT cash account, on the Cash Accounts form (CA202000; Finance > Cash Management > Work Area > Manage), select the SOFT cash account, and on the Entry Types tab, add the UNRECPMT entry type to the table, and save the changes. For the detailed steps on how to configure the cash accounts and the entry type for processing unrecognized payments, see Lesson 17: Unrecognized Payments and Payment Reclassification. If you haven't done the lesson and have no UNRECPMT type already configured in the system, you can continue with any receipt entry type. 2. On the Process Bank Transactions form (CA306000), select the SOFT account. 3. Upload the bank statement for February 2014 from the BankStatement102000SOFT_ ofx file by clicking Upload File and selecting the OFX file. The system has created a new entry on the Import Bank Transactions form (CA306500). If you import bank statements from OFX or similar formats, you can upload the bank statements directly to the Process Bank Transactions form (CA306000), and the system will automatically create the bank statement upload entry, which you can review on the Import Bank Transactions form (CA306500). You can also edit the bank transactions on the Import Bank Transactions form (CA306500). 4. Process the uploaded bank transactions as follows: a. On the form toolbar, click Auto Match to execute the process for newly uploaded transactions, and click Save to save the process result. No matching documents or transactions are found in the system; the system suggests that you create the documents based on the bank transactions. After you have imported new bank transactions, we recommend that you always start working with them by running the auto-matching process on the Process Bank Transactions form (CA306000). New transactions for which you haven't run the auto-matching process yet are highlighted with bold. When you run the auto-matching process, the system searches for possible matches for the new transactions. b. Process the $ receipt bank transaction with the reference number. The description of the bank transaction is empty. In such situations, you can look for the information in the Payee Name column, which is hidden by default. Do the following to add the column to the table and see whether you can recognize the payment: a. Add the Payee Name column to the left table. To do this, click the Column Configuration button (the leftmost button at the table header), and in the Column Configuration dialog, find Payee Name in the Available Columns list, move it to the Selected Columns list, and click OK. (See the following screenshot.)

116 Lesson 18: Bank Reconciliation 116 Figure: The Payee Name column added to the table When you upload the bank transactions from OFX or related formats, the payee information can be imported in the Tran. Desc. (transaction description) or Payee Name field. b. Find the payee name in the Payee Name column for the $ transaction. Suppose that you recognize the payment from the Westfield Co., Ltd customer. The system has found the invoice to which the payment could be applied and highlighted the bank transaction. The invoice has been found by amount: the total amount of the INV invoice is equal to the amount of the payment, $ , so that the bank transaction could be recognized as the full payment for the invoice; find the invoice on the Match to Invoices tab. The system doesn't match payments to invoices automatically. Therefore, after the system has found the invoice, the bank transaction remains highlighted with bold, which means it hasn't been matched to any document yet and is pending your review and decision. c. To specify the settings to create the payment for the invoice in the system, add the Tran. Code column to the table (by using the Column Configuration dialog) to find out the method by which the payment has been received. You see the XFER transaction code, which you recognize as the code of wire transfers. d. Specify the settings to create the payment for the invoice in the system as follows: a. On the Match to Invoices tab, select the Matched check box for the INV invoice. The bank transaction has been marked as matched in the left table. When you process the bank transaction, the system will create the payment based on the specified settings and immediately apply it to the invoice. The system will create the Westfield Co. payment made by the WIRE payment method.

117 Lesson 18: Bank Reconciliation 117 b. In the Payment Method box, select WIRE, which represents wire transfers in the system. c. Verify the customer in the Business Account field: It should be C Westfield Co., Ltd, taken from the invoice. Save your changes. The system saves the matching results and the settings that you have specified on the tabs of the right pane to create the payment for the INV invoice based on the bank transaction. c. Process the $700 receipt transaction with the WT reference number. You can see that there is no payee information for the transaction in either the Tran. Desc. or Payee Name columns. Suppose that you have decided to process the transaction as an unrecognized payment so that it can be classified later, when the information about the payment sender becomes available. a. Select the $700 wire transfer in the left table. b. On the Create Payment tab, specify the following settings to be used when the system creates the cash transaction for the unrecognized payment: c. Create: Selected Module: CA (Cash Management) Entry Type ID: UNRECPMT Save your changes. The $700 payment is not matched yet but the sign no longer appears for the transaction, which means that you have specified the settings to create the payment in the system. d. Proceed as follows to create a rule to apply to transactions such as the last two, which are for the bank service charge: You can define rules to generate cash transactions in the Cash Management module based on bank transactions that match the criteria you specify. In this case, you know that the bank charge transactions are usually not greater $100 and appear with the SRVCHG transaction code in the bank statement. Therefore, you will define a rule to create BANKCHARGE cash entries in the system from disbursement bank transactions that meet these conditions. a. In the table, select the $10 disbursement bank transaction with the reference number (MyBank Transfer fee # WT). b. On the Create Payment tab, click Create Rule, enter the Rule ID MYBANKCHARGE, and click Create. The Bank Transactions Rules form (CA204500) opens with the newly created MYBANKCHARGE rule. c. In the Description box, type MyBank bank fees. d. Specify the following information in the Matching Criteria section: Debit/Credit: Disbursement Cash Account: SOFT Description: Blank (clear the description to make the system ignore the transaction descriptions in this rule) Tran Code: SRVCHG Amount Matching Mode: Between

118 Lesson 18: Bank Reconciliation 118 Amount: 0.00 Max. Amount: (to create transactions for the bank fees that are no greater than $100; if the amount is greater, you want to review them before processing) In the Output section, specify BANKCHARGE in the Resulting Entry Type box, and save the rule. Figure: Bank transaction rule The system will apply the defined rule during future runs of the auto-matching process. Because you have already executed the auto-matching of the uploaded transactions, you have to clear the matching results for the transactions for which you want to run the auto-matching again: the two bank fee transactions to which you want to apply the rule. e. On the Process Bank Transactions form (CA306000), click Clear Match on the table toolbar for the and transactions, as shown in the following screenshot. Figure: Auto-matching cleared for two transactions f. On the form toolbar, click Auto Match.

119 Lesson 18: Bank Reconciliation 119 The system has executed the auto-matching process for two transactions and has applied the MYBANKCHARGE rule to them. The applied rule is displayed on the Create Payment tab for each transaction. g. On the form toolbar, click Save to save the matching results. Now all bank transactions for February 2014 have been reviewed and matched. 5. On the form toolbar, click Process Matched Lines. For every bank transaction being processed, the system selects the Cleared check box for the matched transaction in the system. For those transactions for which you have specified the settings for creating cash transactions and accounts receivable payments in the system, the corresponding documents have been created and released. Once a bank transaction has been successfully processed, you cannot reverse the result and rematch the transaction differently. 6. Review the generated documents and make sure they are released. For the $3, payment from Westfield Co., Ltd, make sure the payment has been automatically applied to the INV invoice. 7. On the Reconciliation Statements form (CA302000), specify the following settings to prepare and release the reconciliation statement for 2/28/2014 (the previous reconciliation statement for 1/31/2014 must be prepared and released by this time): Reconciliation Date: 2/28/2014 Statement Balance: The reconciliation statement is shown in the screenshot below. Figure: The reconciliation statement for February 2014 Cleared transactions selected in the reconciliation statement are excluded from the future reconciliation. Related Links Import and Processing of Bank Statements Reconciliation Statements

120 Support for OFX and Related Formats 120 Support for OFX and Related Formats This information is provided for reference and is not required reading in this course. You can import bank statements from Open Financial Exchange (OFX), QBO, QFX, and Excel files; the process of importing bank statements is similar for these formats. In the example of this course, you will import bank statements for one cash account from the files in OFX format. However, an OFX file may contain one bank statement or multiple bank statements for the same cash account or multiple cash accounts. The periods of transactions listed in the file must be in chronological order and should not intersect to avoid duplicating transactions. Duplicate transactions cannot be imported; if you attempt to import duplicates, the system shows an error during the process of importing bank statements. OFX versions 1.x and 2.x are supported; the file provided in this course complies with OFX The account currency that is specified in <CURDEF> in the OFX file must match the currency of the cash account in the system. To import a single bank statement from an Excel file, you can upload the records directly to the table on the Process Bank Transactions form (CA306000; Finance > Cash Management> Work Area > Enter). If you want to import multiple bank statements from a single Excel file, you have to compose an import scenario for bank statements and use the import scenario to import the bank statements into the Process Bank Transactions form (CA306000) form. The system supports import of bank transactions from the <STMTRS> and <CCSTMTRS> OFX aggregates. The bank statement End Balance Date and the Ending Balance are imported from the <LEDGERBAL> OFX aggregate. The system imports a transaction as a receipt if the transaction amount is positive and as a disbursement if the amount is negative. The transaction type <TRNTYPE> is imported for informative purposes and doesn't affect the sign of the imported transaction. The table below shows the transaction properties by which the system compares the imported bank transactions with the transactions in the system. Transaction comparison properties Match Setting OFX <STMTTRN> Element Acumatica ERP Documents and Transactions Imported Bank Transaction Ref. Nbr <CHECKNUM>, <REFNUM>, or <FITID> if the previous ones are missing Document Ref. (bank deposits, cash entries, and fund transfers), Payment Ref. (AP and AR payments) Ext. Ref. Nbr. Doc. Date <DTPOSTED> Deposit Date (bank deposits), Tran. Date Transaction Date (cash entries and GL batches), Payment Date (AP and AP payments) Doc. Payee <PAYEE><NAME> or <STMTTRN><NAME> if <PAYEE><NAME> is missing Company Name of the vendor or customer account in AP and AR payments Information imported from OFX Imported Field OFX Element Single statement <STMTRS> or <CCSTMTRS> Start Balance Date <DTSTART> End Balance Date <DTEND> Statement Date <LEDGERBAL> <DTASOF> Ending Balance <LEDGERBAL> <BALAMT> Payee Name (hidden column)

121 Support for OFX and Related Formats 121 Imported Field OFX Element Currency <CURDEF> if the Ignore Currency Check on Bank Statement Import check box is cleared; otherwise, the currency from the bank statement is ignored

122 Comparison of Transactions by Factors and Match Relevance Calculation 122 Comparison of Transactions by Factors and Match Relevance Calculation This information is provided for reference and is not required reading in this course. In the example of processing bank transactions uploaded from the bank statement for January 2014, you have three transactions that have been automatically matched to the cash account transactions in the system (see the screenshot below). This topic describes how the match candidates have been found and how the best candidate has been selected for each of the three transactions. The topic describes the match relevance calculation only for the Match to Payments tab. Figure: Auto-matched transactions There can be multiple transactions that could match a single transaction from the bank statement. The system searches for possible candidates, which are documents and transactions, by the following conditions: Whether the transaction amount in the system is equal to the transaction amount in the bank statement Whether the amount sign (that is, whether the transaction is a receipt or disbursement in the cash account) is the same as the amount sign in the bank statement Whether the transaction date in the system is within the time interval that is specified in Transaction Match Settings dialog: For disbursements, the time interval is specified in the Disbursement Date Matching group: Days before bank transaction date <= transaction date <= Days after bank transaction date For receipts, the time interval is specified in the Receipt Date Matching group: Days before bank transaction date <= transaction date <= Days after bank transaction date Whether the Match Relevance rate is > 0 Each transaction that meets all these conditions appears on the Match to Payments tab. Match Relevance Rate Calculation The Match Relevance rate shows how likely the transaction in the system corresponds to the transaction in the bank statement. The Match Relevance rate ranges between 0 and 1, and the best match is the

123 Comparison of Transactions by Factors and Match Relevance Calculation 123 transaction with the highest or a significantly high Match Relevance rate. The transactions with a Match Relevance rate of zero do not appear on the Match to Payments tab. The Match Relevance rate is calculated based on the match settings. In the match settings, you specify the relative weight of the three factors used to calculate the likelihood: Reference number (Ref. Nbr.) Date of the document or transaction (Doc. Date) Payee information (Doc. Payee) For each of these factors, you specify the percent or weight of the factor in calculation of the Match Relevance rate. Before calculating the Match Relevance rate, the system applies to the document date factor an additional weighting by the number of days the transaction in the bank statement usually appears after it has been processed in the system. The additional weighting parameters for the date are the Payment Clearing Average Delay and the Estimated Deviation (days). You can select these parameters based on the following considerations: In the Payment Clearing Average Delay box, you specify the number of days the payment is usually delayed before it appears in the bank statement with regard to the document date in the system. In the Estimated Deviation (days) box, you specify the number of days before and after the average delay date that includes almost all (99.73%) possible dates of the transaction in the system that could match the transaction in the bank statement, so that a date that is outside of the period is unlikely to be the date of the bank transaction. The Match Relevance calculation formula is shown below. Figure: Match Relevance Calculation For the example presented in the Lesson 18: Bank Reconciliation lesson, you use the default match settings, which you can configure on the Cash Management Preferences form (CA101000). To review the match settings that have been used for the matching process during the current user session, click Match Settings on the Process Bank Transactions form toolbar (Finance > Cash Management > Work Area > Enter), as shown on the screenshot below.

124 Comparison of Transactions by Factors and Match Relevance Calculation 124 Figure: Transaction Match Settings dialog box You can modify the match settings that apply to the current user session and experiment with the parameters to find the best values for the relevance calculation in your case. After that, you can specify the resulting values as the default ones on the Bank Statement Settings tab of the Cash Management Preferences form (CA101000). For the first bank transaction in the screenshot below, with the reference number 1231 ($9000 deposit), the possible match has been found based on the reference number and transaction date. Figure: The Match Relevance rate for the 1231 transaction The reference number of the possible match in the system exactly equals the reference number of the bank transaction. The date of the possible match in the system is 12/31/2013, and this date falls within the date range of 99.73% probable dates of the bank transaction. The probable date range is 27/12/2013 through 1/6/2014. The bank transaction date is one day past the transaction date in the system. Because the date is shifted, the additional weighting function for the date is equal to 0.98, which is the normalized value of the Gaussian distribution with the mean of 0 (Payment Clearing Average Delay) and the standard deviation of 5 (Estimated Deviation). As the result, the Match Relevance rate for the transaction is 0.7 * * 0.98 * * 0 = 0.896, where the factors are

125 Comparison of Transactions by Factors and Match Relevance Calculation 125 the reference number, document date, and payee, respectively. The calculation of the additional date weighting factor is illustrated on the diagram below. Figure: Additional date weighting factor All three automatically matched transactions have high relevance by which the system has recognized them as the best candidates: Transaction with the reference number 1231 has relevance of Transaction with the reference number 0001 has relevance of Transaction with the reference number 0002 has relevance of To have the largest number of transactions matched automatically, you can adjust the weights of the match relevance factors by which the system calculates the match relevance. Best Match Selection Rules Based on the calculated match relevance, the system selects the best match according to the following rules: 1. The best match is the transaction with the highest Match Relevance rate that is greater than If there are no transactions with a Match Relevance rate that is greater than 0.75, the best match is the transaction that is more relevant than the other found transactions for 0.2 or more of the Match Relevance rate. For example, if two transactions were found, one with relevance of 0.25 and another with relevance of 0.5, the transaction with relevance 0.5 will be matched. 3. If only one transaction is found, it is the best match if its Match Relevance rate is 0.2 or greater. 4. Otherwise, there is no best match for the transaction in the bank statement.

126 Comparison of Transactions by Factors and Match Relevance Calculation 126 If you want to change the match settings and run the auto-matching process again, you need to clear the results of the previous auto-matching. To do this, on the Process Bank Transactions form (CA306000), click Clear All Matches on the table toolbar, then click Auto Match to re-run the process of auto-matching.

127 Review Questions 127 Review Questions Answer the following questions to prepare yourself for the certification test: What are the advantages of processing bank deposit transactions in Acumatica ERP? How can you reclassify an unrecognized payment as the payment from a known customer? How can users view unreconciled transactions for a particular cash account? Take the Test Now take the online Certification Test 5: Cash Management at Acumatica University.

128 Part 6: Accounts Payable 128 Part 6: Accounts Payable In this part of the course, you will configure vendor-specific prices for non-stock items so that you can easily enter vendor documents. You will also configure the cash account that represents the corporate credit card from which you make payments to vendors, and see how to process such payments in the system. In the optional 1099 Vendors lesson, you will learn how to track the payments to 1099 vendors and prepare Form 1099-MISC. As a result of completing the lessons of this part, you will have configured vendor-specific prices, and you will also have the payment method configured for processing payments to vendors from a corporate credit card. The lessons of this part should be completed on the F200Init database. You can continue to use the database where you have completed the lessons of the previous part.

129 Company Story: Accounts Payable 129 Company Story: Accounts Payable In this part, suppose that the management of the Software Inc. company wants to enable the following business processes in the system: Processing payments to vendors through a corporate credit card. The Software Inc. company has a Visa corporate credit card issued by MyBank and uses the card to pay small amounts (for example, for books purchased for the company). The company's accountant wants to process and reconcile these payments in the system. Maintaining the catalog of vendor prices for easier data entry. The Software Inc. sales manager wants to keep the catalog of vendor prices in the system to make the entering of documents easier and faster. Software Inc. regularly purchases services from the Advanced Concepts Of Engineering & Software Inc. and Etelligent Solutions vendors. Each vendor charges an hourly rate for the service. The Advanced Concepts Of Engineering & Software Inc. vendor offers a promotional price for all consulting services that are purchased before 4/1/2014. Starting on that day, the service can be purchased at the regular price offered by the vendor. The other vendor, Etelligent Solutions, offers different prices for the consulting service depending on the number of hours purchased, so that purchasing more hours results in a lower price to be paid to the vendor. Tracking payments to be reported in Form 1099-MISC and printing the form. (The lesson related to this task is optional in this course.) In 2013, Software Inc. has made payments to independent contractors, but the company hasn t filed Form 1099-MISC yet. The accountant wants to import the YTD amount of 1099 payments to the vendor and file Form 1099-MISC for In this part of the course, you will learn how to process payments from a corporate credit card and how to reconcile the credit card balance in the system. Then you will learn how to configure vendor prices of different levels. The last lesson describes how to process payments to 1099 vendors.

130 Lesson 19: Payments to Vendors by Using a Corporate Credit Card 130 Lesson 19: Payments to Vendors by Using a Corporate Credit Card To track payments to vendors made by using a corporate credit card, you create a cash account that represents the corporate credit card in the system and link the cash account to an accrued liability account. For example, suppose that you have a bill of $100 for books on consulting. To process a payment by using the corporate credit card for the bill, you process the bill as usual and specify the credit card cash account in the Accounts Payable payment. On processing the payment, the system will generate the transaction as follows: Accounts Payable Cr, $100 Expense account Dr, $100 When you process the payment that uses the corporate credit card, the system generates the transaction as follows: Accounts Payable Dr, $100 Accrued liability account Cr, $100 When you receive the statement for the card, you create an AP bill in the amount of the statement and specify the accrued liability account as the expense account in the bill. When you process the credit card bill, the system generates the transaction as follows: Accounts Payable Cr, $100 Accrued liability account Dr, $100 Then you pay the credit card bill by processing an AP payment for the credit card bill from the cash account you use to pay for the credit card (such as a checking account). When you process the payment for the credit card bill, the system generates the transaction as follows: Accounts Payable Dr, $100 Checking account Cr, $100 You can also reconcile the balance of the credit card (that is, the balance of the accrued liability cash account) with the credit card statement in the same way as you reconcile balances for regular cash accounts. In this lesson, you will configure the cash account and the payment method for tracking outgoing payments made through a corporate credit card. Then you will perform the reconciliation of the corporate credit card balance in the system with the credit card balance in the statement received at the end of the month. You will perform the following tasks: 1. Configuring the cash account and the payment method 2. Processing a bill paid with the credit card 3. Paying the credit card bill 4. Reconciling the balance of the corporate credit card in the system 1. Configuring the Cash Account and the Payment Method To be able to track AP payments through the corporate credit card in the system, you will configure the new SOFT cash account and the new CORPCC payment method, and create the MyBank vendor. Proceed as follows: 1. On the Charts of Accounts form (GL202500; Finance > General Ledger > Configuration > Manage), create the Accrued Liability account with the following settings: Account: Account Class: OTHCURLIAB

131 Lesson 19: Payments to Vendors by Using a Corporate Credit Card 131 Type: Liability Active: Selected Description: Accrued Liability For each corporate credit card, you have to define one accrued liability account in the chart of accounts. The accrued liability account must be in the same currency as the corporate credit card is. 2. On the Cash Accounts form (CA202000; Finance > Cash Management > Work Area > Manage), create the corresponding cash account with the following settings: Cash Account: SOFT Account: Accrued Liability Subaccount: Branch: SOFT Description: Accrued Liability - Corporate Credit Card MyBank Visa Restrict Visibility with Branch: Selected (according to the business requirements, the cash accounts of the SOFT branch are restricted to the branch) Requires Reconciliation: Selected Reconciliation Numbering Sequence: CARECON 3. On the Entry Types tab, add the BANKCHARGE and INTEREST entry types to the table to be able to create these disbursement and receipt transactions in the corporate credit card. 4. On the Payment Methods form (CA204000; Finance > Cash Management > Configuration > Setup), create the CORPCC payment method (and select the SOFT cash account on the Allowed Cash Accounts tab) to be able to use the payment method with the corporate credit card. Specify the settings as follows: 5. Payment Method ID: CORPCC Active: Selected Means of Payment: Cash/Check Description: Corporate credit card Use in AP: Selected Use in AR: Cleared Require Remittance Information for Cash Account: Cleared Allowed Cash Accounts, Cash Account: SOFT, Use in AP: Selected, AP Default: Selected On the Vendors form (AP303000; Finance > Accounts Payable > Work Area > Manage), create the MyBank vendor, which will represent the bank of the corporate credit card in the system, with the following settings: Vendor ID: V (inserted automatically when you save the new vendor) Vendor Name: MyBank GL Accounts tab, Expense Account: Accrued Liability GL Accounts tab, Expense Sub.:

132 Lesson 19: Payments to Vendors by Using a Corporate Credit Card 132 Now the SOFT cash account, the CORPCC payment method, and the MyBank vendor are ready, so that you can track the corporate credit card payments and reconcile the credit card balance in the system with the card statement balance. 2. Processing a Bill Paid with the Credit Card Process a new bill for the purchase of books, which was paid by a corporate credit card, as follows: 1. Select SOFT as the current branch. 2. On the Bills and Adjustments form (AP301000; Finance > Accounts Payable > Work Area > Enter), enter and release the bill for the purchase of books for which you have paid by a corporate credit card: 3. Type: Bill Vendor: V (Borders Books, Music & Cafe) Date: 1/10/2014 Post Period: Description: Books on consulting Document Details tab, Branch: SOFT, Ext. Cost: , Account: (Services Expense), Subaccount: CON Financial Details tab, Payment Method: CORPCC, Cash Account: SOFT Enter the AP check for the bill by selecting Actions > Pay Bill/Apply Adjustment on the form toolbar. For AP payments through a corporate credit card, you can also use the Prepare Payments (AP503000; Finance > Accounts Payable > Processes > Payment Processing) and Release Payments (AP505200; Finance > Accounts Payable > Processes > Payment Processing) forms as you use them for any other AP payment On the Checks and Payments form (AP302000; Finance > Accounts Payable > Work Area > Enter) that opens for creation of the AP check for the bill, enter the following settings: Application Date: 1/10/2014 Application Period: Payment Ref.: B Release the AP check and review the generated batch (see the following screenshot).

133 Lesson 19: Payments to Vendors by Using a Corporate Credit Card 133 Figure: The batch generated on release of the AP check The amount of the AP payment made through the corporate credit card has been credited to the accrued liability account. 3. Paying the Credit Card Bill On 1/28/2014, you received the statement for the corporate credit card. The statement balance is $108, which you owe to the bank, and the statement contains the following transactions. The 1/28/2014 bank statement for the corporate credit card Card Number Transaction Date Transaction Description Amount VISA XXXX 1/11/2014 Borders Books, Music & Cafe -$ /28/2014 MyBank service charges January $ /28/2014 MyBank cash back January-2014 $2.00 Statement Balance: -$ You have decided to pay the credit card payment to the bank by issuing a check from the SOFT checking account. Perform the following instructions: 1. Select SOFT as the current branch. 2. On the Bills and Adjustments form (AP301000), enter the bill with the following settings, so you can process the payment for the month's credit card use: 3. Type: Bill Vendor: V (MyBank bank) Date: 1/28/2014 Post Period: Description: Payment for the corp. credit card as of statement 1/28/2014 Document Details tab, Branch: SOFT, Transaction Descr.: Payment for the corp. credit card as of statement 1/28/2014, Ext. Cost: , Account: Accrued Liability, Subaccount: Release the bill and review the generated batch, shown in the following screenshot.

134 Lesson 19: Payments to Vendors by Using a Corporate Credit Card 134 Figure: The batch generated on release of the bill The amount to be paid for the corporate credit card to the bank has been debited to the accrued liability account. 4. On the Financial Details tab of the Bills and Adjustments form (AP301000) for the bill, make sure that the payment method is CHECK and the cash account is SOFT - Checking Account, from which you are going to pay for the credit card, and then on the form toolbar, select Actions > Pay Bill/Apply Adjustment. 5. On the Checks and Payments form (AP302000), which opens for creation of the AP check for the bill, specify the following details for the AP check: 6. Application Date: 1/28/2014 Application Period: Print and release the AP check. You have processed the payment for the corporate credit card in the system. 4. Reconciling the Balance of the Corporate Credit Card Perform the reconciliation of the corporate credit card balance in the system with the balance as of the statement for 1/28/2014: 1. On the Reconciliation Statements form (CA302000; Finance > Cash Management > Work Area > Enter), select the SOFT - Corporate Credit Card MyBank Visa cash account. Before the reconciliation, you can upload the bank statement for the corporate credit card and match the transactions by using the Import Bank Transactions form (CA306500; Finance > Cash Management > Work Area > Enter). 2. Create the reconciliation statement with the Reconciliation Date set to 1/28/2014 and the Statement Balance set to The credit card balance is reconciled with the statement balance when the Reconciled Balance and the Statement Balance are equal for the selected transactions in the reconciliation statement. 3. Select the Reconciled check box for the $100 book purchase disbursement transaction and save the changes. The credit card cash account is still missing $8, which is displayed in the Difference box (as shown in the screenshot below). This is the total amount of transactions that have appeared in the bank statement, but they haven't yet been processed in the system.

135 Lesson 19: Payments to Vendors by Using a Corporate Credit Card 135 Figure: Reconciliation statement for 1/28/ By clicking Create Adjustment on the table toolbar, create two cash transactions on 1/28/2014 that you have discovered on the credit card statement: one for the $10 bank charge (BANKCHARGE), and one for the $2 cash back (INTEREST) on the credit card cash account. Figure: Two cash transactions created Both transactions are marked with the sign, because they haven't been released yet and could not be included to the reconciliation. 5. On the Transactions form (CA304000; Finance > Cash Management > Work Area > Enter), release the created two cash transactions, and go back to the Reconciliation Statements form (CA302000) with the reconciliation statement for the SOFT cash account. 6. Select the Reconciled check box for the two released transactions so that the Reconciled Balance becomes -$ and the Difference becomes $0.00, as shown in the following screenshot. Figure: Reconciliation completed The reconciliation is complete. In the reconciliation statement, you have selected all transactions that have appeared the credit card statement. For the selected transactions, the Reconciled Balance is equal to the Statement Balance. Therefore, the credit card balance is reconciled with the bank statement.

136 Lesson 19: Payments to Vendors by Using a Corporate Credit Card 136 You do not select the $108 payment that you made to the bank in the reconciliation statement. It will appear in the next bank statement for the credit card and you will reconcile the payment next time. 7. Release the reconciliation statement.

137 Lesson 20: Vendor Prices 137 Lesson 20: Vendor Prices In Acumatica ERP, you can keep a catalog of vendor prices for stock items and non-stock items. You can use these prices in vendors' bills and purchase orders to simplify entering documents in the system. When you enter a vendor's bill and select a non-stock item in the document line, the system automatically suggests the vendor price in the line. Stock items are outside of the scope of this course; to use stock items, you need the Distribution suite. In the system, you can work with price lists, which you can create manually or upload from an Excel file received from the vendor. You can keep regular prices and promotional prices in the system. To create and maintain price lists, you use the Vendor Price Worksheets form (AP202010). On this form, you can work with a draft price list until the price list is ready. Then you have to release the price list to make the prices effective in the system. On the Vendor Prices form (AP202000), you can view all prices that are effective in the system; you can add a new price or modify an existing price directly. When you select an item in an Accounts Payable document, the system suggests the price according to the priority, which is illustrated on the diagram below. From the list of effective prices, the system suggests the promotional price if one is effective on the document date; if there is no promotional price, the system suggests the regular price. For stock and non-stock items, the system also saves the last vendor price that you have used for the item in the vendor's bills. For non-stock items, every time you release a bill, the system updates the last vendor price, which is displayed on the Vendor Details tab of the Non-Stock Items form (IN202000). When you create a bill, if there is no promotional or regular price for the item, the system suggests the last vendor price that has been used in the previous bill (if any). If there is no such price for the item, the system suggests the standard cost, which you can specify for the non-stock item on the Price/Cost Information tab of the Non-Stock Items form (IN202000). The system always uses the priority of prices and standard cost, and never selects the best available vendor price.

138 Lesson 20: Vendor Prices 138 Figure: Priorities of the vendor prices for a single item in the system The promotional and regular prices are effective during a certain period of time. When you add a new regular price, the system preserves the previous regular price. For new documents, the system suggests the current price or the previous price, depending on the document date. In the Accounts Payable module, you can specify the way the system keeps the history of vendor prices (and the similar setting is provided in the Accounts Receivable module for customer prices): Keep only one previous price and update the previous price every time a new price is released. Keep the history of prices for the specified number of months. Suppose that you have created several prices that are effective in different time periods: Regular price 1, which was created on the Vendor Prices form (AP202000). Regular prices 2, 3 and 4, which were created by using worksheets. Promotional price, which was created by using worksheets. The system will select the price that is effective on the document date and has the highest priority, as illustrated on the Effective Price timeline on the diagram below.

139 Lesson 20: Vendor Prices 139 Figure: Selection of a vendor price in different time periods In this lesson, you will work with vendor price lists, see how prices are suggested in Accounts Payable documents, and analyze how the system keeps the history of vendor prices. According to the company story, the companies purchase services from the following vendors: The Advanced Concepts Of Engineering & Software Inc. vendor, which provides a list of regular prices and gives a promotional price for the first three months of a service usage The Etelligent Solutions vendor, which offers special prices that depend on the number of hours that you purchase You will perform the following tasks: 1. Creating a list of regular prices and adding a promotional price 2. Analyzing how the system keeps the history of vendor prices 3. Creating a list of vendor prices broken down by item quantity 4. Analyzing how the system suggests the last purchase price and standard cost 1. Creating a List of Regular Prices and Adding a Promotional Price The V (Advanced Concepts Of Engineering & Software Inc.) vendor offers the following prices for services: Regular prices starting on 1/1/2014: Consulting service $100/hour Support service $200/hour Customization service $300/hour Promotional price of $95/hour for consulting service from 1/1/2014 to 3/31/2014 Perform the following instructions to create a list of regular prices and add a promotional price for V :

140 Lesson 20: Vendor Prices On the Vendor Price Worksheets (AP202010; Finance > Accounts Payable > Work Area > Enter), add a new vendor price worksheet as follows: a. b. Create a worksheet by specifying the following parameters: Effective Date: 1/1/2014 Description: Regular prices of V (Advanced Concepts Of Engineering & Software Inc) On the table toolbar, click the Load Records from File button, and upload the prices from the VendorPrices_AdvConcepts_1_1_2014.xlsx file; accept the default null value and column mapping. The regular prices are uploaded to the worksheet, as the following screenshot shows. Figure: The prices uploaded from the Excel file to the vendor price worksheet c. Clear the Hold check box, save the worksheet, and click Release to make the prices effective in the system. The system updates the list of effective prices. The prices from the worksheet will be suggested in documents starting on 1/1/2014. You can review and amend the prices by using the Vendor Prices form (AP202000). 2. To add the $95/hour promotional price to the system, on the Vendor Prices form (AP202000; Finance > Accounts Payable > Work Area > Manage), do the following: a. On the Vendor Prices form (AP202000), click Add (+) on the table toolbar. b. In the row, specify the new price with the following settings: c. Vendor: V (Advanced Concepts Of Engineering & Software Inc) Inventory ID: CONSULT Promotional: Selected Price: Effective Date: 1/1/2014 Expiration Date: 3/31/2014 Click Save on the form to add the new price. As soon as you save the changes, the system updates the list of effective prices, as shown in the following screenshot.

141 Lesson 20: Vendor Prices 141 On this form, you can filter the prices, for example, by vendor or by item for review or export to an Excel file. You can also use the Effective As Of box to view the prices effective on the certain date. Figure: The promotional price added to the list of effective vendor prices 3. Analyze how the system suggests the prices as follows: a. On the Vendors form (AP303000; Finance > Accounts Payable > Work Area > Manage), select the V (Advanced Concepts Of Engineering & Software Inc) vendor, and specify the expense account and the expense subaccount for the vendor. b. On the Bills and Adjustments form (AP301000; Finance > Accounts Payable > Work Area > Enter), start entering a new bill with the V (Advanced Concepts Of Engineering & Software Inc) vendor specified, and do the following: In this instruction and further in this lesson, you don't have to save the sample bills. a. Set the date of the bill to 1/1/2014 and add a line with the CONSULT non-stock item. Notice that the promotional $95 price of the item has been suggested in the Unit Cost box, as shown in the following screenshot. Figure: Promotional price for the CONSULT item specified in the bill You can always change the unit cost in the line after the system suggests the vendor price taken from the non-stock item. The system calculates the Ext. Cost of the line as the Quantity times Unit Cost. Alternatively, you can specify only the Ext. Cost amount in the line and leave the Quantity and Unit Cost as zero. The Amount of the line is equal to the Ext. Cost of the line if there are no discounts

142 Lesson 20: Vendor Prices 142 for the item. The total Amount of lines is the Detail Total of the bill if there are no group and document discounts and taxes. b. Change the date of the bill to 4/1/2014, which is the first day after the promotional price expires. Notice that the $100 price of the item has been suggested in the Unit Cost box, as shown in the following screenshot. Figure: Regular price for the CONSULT item specified in the bill To update the prices and discounts in the existing document, you can click Actions > Recalculate Prices and Discounts on the toolbar of the Bills and Adjustments form (AP301000). 2. Analyzing How the System Keeps the History of Vendor Prices By default, the system keeps one previous price and updates the previous price every time you add a new price. (This mechanism is demonstrated in Lesson 23: Customer Prices.) In this example, you will see how the system keeps the history of prices for a fixed period of time. Suppose that you have received two new price lists from the V (Advanced Concepts) vendor: Regular prices that apply starting in May 2014 Regular prices that apply starting in September 2014 Perform the following instructions to make the system keep the history of prices for twelve months, upload the price lists, and analyze how the prices are maintained: 1. On the Accounts Payable Preferences form (AP101000; Finance > Accounts Payable > Configuration > Setup), set the price retention settings as follows and save the changes: Retention Type: Fixed Number of Months Number of Months: 12 Depending on the Retention Type setting, the system maintains only one previous price or keeps the history of prices for the specified period of time. 2. On the Vendor Price Worksheets (AP202010; Finance > Accounts Payable > Work Area > Enter), add two new vendor price worksheets as follows: a. Create a worksheet that is effective starting on 5/1/2014 by specifying the following parameters: Effective Date: 5/1/2014 Description: Regular prices of V (Advanced Concepts Of Engineering & Software Inc)

143 Lesson 20: Vendor Prices 143 b. On the table toolbar, click the Load Records from File button and upload the prices from the VendorPrices_AdvConcepts_5_1_2014.xlsx file; accept the default null value and column mapping. c. Clear the Hold check box, save the worksheet, and click Release to make the prices effective in the system. The system updates the list of effective prices. 3. d. Create a worksheet that is effective starting on 9/1/2014, and upload the prices to it from the VendorPrices_AdvConcepts_9_1_2014.xlsx file. e. Release the worksheet to make the system update the effective vendor prices. Open the Vendor Prices form (AP202000; Finance > Accounts Payable > Work Area > Manage) to view how the system has updated the prices. Select the CONSULT item to filter the prices shown. The last regular price, $120, starts on 9/1/2014. For the two previous prices, the system has set the expiration date, which is the last day when the price applies. For the price that is effective on 1/1/2014, the system has set the expiration date to 4/30/2014, which is the last day before the next price comes into effect on 5/1/2014. For the price that is effective on 5/1/2014, the system has set the 8/31/2014 expiration date. (See the following screenshot.) The system sets the expiration date automatically if you release a new price from a worksheet. If you add a new price directly on the Vendor Prices form (AP202000) form, you have to specify the expiration date for the previous price manually. Figure: Expiration dates, which are automatically set for previous prices when a new price is released from a worksheet 3. Creating a List of Vendor Prices Broken Down by Item Quantity You can keep promotional and regular vendor prices that are broken down by item quantity if the vendor provides such price lists. To use quantity-dependent prices, you have to enable the Volume Pricing feature in the system. In quantity-dependent price lists, you have to start the first price from a break quantity of 0. The V (Etelligent Solutions) vendor offers prices that depend on the number of purchased hours of consulting services: $110/hour price for 0 to 4 hours of consulting service purchased $100/hour price for 5 to 9 hours of consulting service purchased $90/hour price for 10 or more hours of consulting service purchased Complete the following steps to define these prices, which depend on the quantity of hours that you purchase:

144 Lesson 20: Vendor Prices On the Enable/Disable Features form (CS100000; Configuration > Common Settings > Licensing), enable the Volume Pricing feature within the Finance group. By using the Volume Pricing feature, you can define vendor price lists and customer price lists for stock and non-stock items with different prices that depend on item quantity. 2. Define the prices offered by the V (Etelligent Solutions) vendor for their consulting service, which depend on the number of service hours that you purchase, as follows: a. On the Vendor Price Worksheets form (AP202010; Finance > Accounts Payable > Work Area > Enter), create a worksheet that is effective starting from 1/1/2014 for the CONSULT item and the V (Etelligent Solutions) vendor: a. Specify 1/1/2014 in the Effective Date box. b. Add the rows with the prices to the table, as the table below shows. The prices, broken down by quantity, offered by the V vendor for the CONSULT non-stock item Vendor Inventory ID Break Qty. Pending Price V CONSULT V CONSULT V CONSULT The Break Qty. specifies the item quantity starting from which the new price is applied. b. Release the worksheet to update the effective prices. (The released worksheet is shown in the following screenshot.) Figure: The worksheet with the prices for the CONSULT non-stock item broken down by quantity On the Vendor Prices form (AP202000), you can view the V vendor's prices that apply to the consulting service item. 3. On the Bills and Adjustments form (AP301000), start entering a new bill of the V (Etelligent Solutions) vendor and add three lines to the bill with the CONSULT non-stock item and the quantities, respectively, of 1, 5, and 12 hours.

145 Lesson 20: Vendor Prices 145 As you can see in the following screenshot, the system suggests different unit costs depending on the specified quantity of the item to be purchased. Figure: Different prices depending on the item quantity in the bill 4. Analyzing How the System Suggests Last Purchase Price and Standard Cost To analyze how the system suggests last purchase price ans standard cost, do the following: For the ADVERT item, for which we do not have a sales price specified, specify an $85 standard cost, effective since 1/1/2014, as follows: a. On the Non-Stock Items form (IN202000), select ADVERT in the Inventory ID box. b. On the Price/Cost Information tab, specify $85 as the Pending Cost and 1/1/2014 as the Pending Cost Date. c. On the form toolbar, click Actions > Update Cost. On the Bills and Adjustments form (AP301000), start entering a new bill for the V (Midwood Ambulance) vendor for 1/1/2014, and add a line with the ADVERT item. The system suggests the $85 standard cost (see the screenshot below), because there is no regular or promotional price effective for this vendor on the specified date.

146 Lesson 20: Vendor Prices 146 Figure: Standard cost suggested by the system 3. Change the price to $75, specify as the Subaccount, and release the bill. 4. For the ADVERT non-stock item, review the Vendor Details tab on the Non-Stock Items form (IN202000), shown in the following screenshot. The last purchase price has been saved for the V vendor. Figure: Last purchase price for the V vendor 5. On the Bills and Adjustments form (AP301000), start entering a new bill for the V (Midwood Ambulance) vendor for 1/1/2014 and add a line with the ADVERT item.

147 Lesson 20: Vendor Prices 147 Figure: Last purchase price suggested for the V vendor The system suggests the last purchase price, which is $75. Related Links Vendor Price Lists Non-Stock Item Support

148 Lesson 21: 1099 Vendors 148 Lesson 21: 1099 Vendors This lesson, which covers concepts that are relevant for businesses operating in the United States, is not required for certification. In 2013, the Software Inc. company paid $1000 to Repair master for repair of the office furniture, and $350 to Quick office aid master. The Software Inc. accountant hasn't yet filed Form 1099-MISC for independent contractors the company has paid during The payments to these vendors should be reported in Box 7 of Form 1099-MISC. Because $1000 is more than the minimum amount reported in Box 7, $600, the accountants have to file Form 1099-MISC for the Repair master vendor for To mark the vendor as a 1099 vendor in the system, you have to select the 1099 Vendor check box on the Vendors form (AP303000) for the vendor. For 1099 vendors, the system tracks the payments to be filed in Form 1099-MISC for each vendor at the end of the calendar year. In this lesson, you will specify the payer and payee information that is printed on Form 1099-MISC. Then you will learn to import year-to-date 1099 payments for vendors, which might be needed if you migrate the system in the middle of a calendar year. After that, you will prepare Form 1099-MISC for 2013 for a vendor, and then close the 2013 year to prevent new payments to 1099 vendors from being posted in that calendar year. Then you will learn how to specify a default box number for a vendor, and how to associate a box number with an expense account. Finally, you will see how to correct a bill to change the amount to be reported in Form 1099-MISC. Thus, you will perform the following tasks: 1. Configuring companies for tracking 1099 payments. 2. Importing the year-to-date balances of 1099 vendors. 3. Reviewing the 1099 reports. 4. Preparing Form 1099-MISC and close the 1099 year. 5. Configuring the default 1099 Box for Accounts Payable documents. 6. Correcting the bill to change the amount to be reported in Form 1099-MISC. 1. Configuring the Companies for Tracking 1099 Payments Specify the company information that is printed on Form 1099-MISC for the payer and the recipients as follows: 1. Specify the payer's identification number and address, which are inserted into Form 1099-MISC for each of the companies, as follows: a. On the Branches form (CS102000; Organization > Organization Structure > Configure), select the SOFT branch, and specify the payer's information for the Software Inc. company: Tax Registration ID: (a sample Employer ID Number we are using for the company) Address Line 1: 123 White Street The branch name, address, and identification number are inserted into Form 1099-MISC as the payer's information. b. On the Branches form (CS102000), select the COMP branch, and specify the payer's information for the Computers Inc. company: Tax Registration ID: (another sample Employer ID Number we are using for the company) Address Line 1: 10 Green Street

149 Lesson 21: 1099 Vendors To specify one recipient's identification number, on the Vendors form (AP303000), select the Repair master independent contractor (V ), and on the Purchase Settings tab, enter in the Tax Registration ID box. To specify another recipient's identification number, while remaining on this form, select the Quick office aid master independent contractor (V ), and on the purchase settings tab, enter in the Tax Registration ID box. The vendor's name, address, and identification number will be inserted into Form 1099-MISC for the vendors. 2. Importing the Year-to-Date Balances of 1099 Vendors Since you are implementing Acumatica ERP in the middle of a calendar year, you have to record the year-to-date amounts that you have paid to Repair master and Quick office aid master during the 2013 calendar year, to be able to file Form 1099-MISC for these vendors for Proceed as follows: 1. Select SOFT as the current branch. 2. On the Quick Checks form (AP304000; Finance > Accounts Payable > Work Area > Enter), create and save a $1000 check to Repair master, with the following settings: Type: Quick Check Vendor: V (Repair master) Payment Method: CHECK Cash Account: SOFT Date: 12/31/2013 Post Period: Description: 1099 YTD payment import for 2013 Document Details, Branch: SOFT, Ext. Cost: , Account: (Repair & Maintenance Expense), Subaccount: , 1099 Box: 7-Nonemployee Compensation You can add more lines to the check for the year-to-date amounts in other 1099 boxes. The cash account and payment method aren't important in the check; you can select any account or method. You do not have to print out the check on paper, because you are processing the check only to record the year-to-date (YTD) payment amount for the 1099 vendor into the system On the Quick Checks form (AP304000; Finance > Accounts Payable > Work Area > Enter), create and save the $350 check to Quick office aid master, with the following settings: Type: Quick Check Vendor: V (Quick office aid master) Payment Method: CHECK Cash Account: SOFT Date: 12/31/2013 Post Period: Description: 1099 YTD payment import for 2013 Document Details, Branch: SOFT, Ext. Cost: , Account: (Repair & Maintenance Expense), Subaccount: , 1099 Box: 7-Nonemployee Compensation Print both quick checks on the Process Payments/Print Checks form (AP503000), and then release the payments on the Release Payments form (AP505200).

150 Lesson 21: 1099 Vendors Find and reverse the batch generated on release of the quick checks, because you have already imported the actual account balances for , which include the payments. The payments appear in the documents of Repair master and Quick office aid master for 2013, and the system tracks the payments to be reported in Form 1099-MISC, but the general ledger account balances remain the same as they were before processing of the quick checks. As soon as you process the first payment in a calendar year to a 1099 vendor, the calendar year appears among the options that can be selected in the 1099 Year box. You can process the payments to 1099 vendors dated to the calendar year until the year is closed in the Accounts Payable module for 1099 payments. 3. Reviewing the 1099 Reports Review the reports that show the amounts tracked for 1099 vendors as follows: 1. Open the 1099 Year Summary form (AP405000; Finance > Accounts Payable > Work Area > Explore) for the V (Quick office aid master) vendor and 2013 year (see the following screenshot). The form shows the amounts paid to the vendor in the selected calendar year. In the table, you can see the $350 year-to-date payment that has been imported for the Quick office aid master vendor for Figure: 1099 Year Summary for the Quick office aid master vendor for Run the 1099 Year Summary report (AP654000; Finance > Accounts Payable > Reports > Audit) for the SOFT branch and the 2013 calendar year. In this report, for the selected branch and open 1099 year, you can view the total payment amounts by vendor and by 1099 box. The report (shown in the following screenshot) shows the amount in a 1099 box if the amount is at or above than the minimum specified for the 1099 box on the Accounts Payable Preferences

151 Lesson 21: 1099 Vendors 151 form (AP101000; Finance > Accounts Payable > Configuration > Setup); otherwise, the report shows zero in the box. Thus, for the SOFT branch and 2013 calendar year, the report shows only the $1000 payment made to Repair master; it does not show the $350 payment to Quick office aid master, which is less than minimum $600 to be reported in Box 7. Figure: 1099 Year Summary for the SOFT branch for Run the 1099 Year Summary report (AP654000) with the COMP branch and the 2014 calendar year. For the Computers Inc. company, you have configured the COMP consolidating branch so that the company can file a single Form 1099-MISC with payment amounts consolidated for the two branches of the company, WEST and EAST. The report (see below) shows 1099 vendors to which you have made payments during the selected year. During 2014, you have paid $4680 to Repair master. Figure: 1099 Year Summary for the COMP consolidating branch for Run the 1099 Year Details report (AP654500; Finance > Accounts Payable > Reports > Audit) with the COMP branch and the 2014 calendar year to view the list of payments by vendor. For the selected branch and open 1099 year, the report shows the amounts paid for the AP bill lines that have the 1099 box specified. The Box 7 Total, shown below, is the total for all the listed documents and is equal to the amount displayed in Box 7 of the 1099 Year Summary report ($4680). Figure: 1099 Year Details for the COMP consolidating branch for 2014 The Pay Date column shows the date when the bill should have been paid (not the date of the actual payment). That is, the report displays the Pay Date of the bill, which is displayed on the

152 Lesson 21: 1099 Vendors 152 Financial Details tab of the Bills And Adjustments form (AP301000). The date when the payment was made is displayed in the Payment Date box on the Financial Details tab on the Check And Payments form (AP302000). To view the list of all vendors that are configured as 1099 vendors in the system, you can use the list in the Vendor box on the 1099 Year Summary form (AP405000; Finance > Accounts Payable > Work Area > Explore). 4. Preparing Form 1099-MISC and Closing the 1099 Year To file Form 1099-MISC for the year 2013 for all vendors to which you have made payments during the year and then close the year for new 1099 payments, perform the following instructions: 1. On the 1099-MISC Form (AP653000; Finance > Accounts Payable > Reports > Forms), select the SOFT branch and the 2013 year and run the report. The system outputs Form 1099-MISC for each vendor to whom you have made payments during the selected year with YTD amount that is at least the minimum amount to be reported in each 1099 box. Thus, you see one Form 1099-MISC for the Repair master vendor with the $1000 YTD amount in Box 7 and $1000 total. The Form 1099-MISC template provided with Acumatica ERP is actual for 2013 and 2014, according to the Internal Revenue Service (IRS) instructions for Form 1099-MISC for these years. On the Create E-File (AP507500) form, for the selected branch, you can prepare Form 1099-MISC in the electronic format required by the IRS. The electronic form settings are specified by branch on the Branches form (CS102000; Organization > Organization Structure > Configure > Branches). For more information, see the Related Links section. After you have filed Form 1099-MISC for a year, you can close the year as the 1099 year in the system to prevent posting of new payments to 1099 vendors with a payment date that belongs to the closed 1099 calendar year. 2. Open the Close 1099 Year form (AP507000; Finance > Accounts Payable > Processes > Closing), select 2013 in the 1099 Year box and click Close Year on the form toolbar to close the 2013 year for 1099 payments. The 2013 calendar year becomes closed for 1099 payments. On the Checks and Payments (AP302000; Finance > Accounts Payable > Work Area > Enter) and Quick Checks (AP304000; Finance > Accounts Payable > Work Area > Enter) forms, users cannot process new payments to 1099 vendors with a date that belongs to the 2013 calendar year. You cannot reopen the 1099 year after it is closed payments are independently tracked for each calendar year. Therefore, users don't have to close a calendar year for 1099 payments to be able to prepare Form 1099-MISC for the next year, and they can keep all 1099 years open permanently. The closing of a 1099 year has nothing to do with the closing of financial periods in the Accounts Payable module. 5. Configuring the Default 1099 Box for Accounts Payable Documents To make the system automatically insert the number of the 1099 box depending on the expense account that you select in an Accounts Payable document for a 1099 vendor, associate the 7 Nonemployee Compensation box with the Services Expense account as follows: 1. On the 1099 Settings tab of the Accounts Payable Preferences form (AP101000), in the 7 Nonemployee Compensation box, select the Services Expense account in the Account column and save the changes. When you select the Service Expense account for a 1099 vendor, the system will automatically insert the 7 - Nonemployee Compensation box into the document. You can change both the account and the 1099 box in the document, if needed.

153 Lesson 21: 1099 Vendors On the Bills and Adjustments form (AP301000), enter the $1000 bill received on 1/31/2014 from John Smith, independent consultant, for which the 1099 box is not specified in the vendor account. The bill has the following settings: Type: Bill Vendor: V John Smith Independent Consultant Terms: 30D Date: 1/31/2014 Post Period: Description: 20 hours of training Document Details, Branch: SOFT, Ext. Cost: , Account: Services Expense, Subaccount: CON Notice that as soon as you select the expense account for a 1099 vendor, the system inserts the 7 - Nonemployee Compensation box into the document for this vendor (see the following screenshot) and replaces the default 1099 box number taken from the vendor account, if any. Figure: 1099 box auto-filled from the expense account 6. Correcting the Amount to Be Reported in Form 1099-MISC You don't have to specify the 1099 Box number for every line of a bill that you process from a 1099 vendor. You only have to specify the box number in the needed lines and leave the 1099 Box column empty for the lines that you don't want to include in Form 1099-MISC. Also, if you need to modify a 1099 amount, you have to correct the line in the corresponding bill. Perform the following steps: 1. Create a new $1000 bill received from John Smith, independent consultant. Suppose that this amount should not be tracked for 1099; clear the 1099 box in the line of the vendor's bill (see the following screenshot) so you do report this amount in Form 1099-MISC, and release the bill. Figure: Bill for a 1099 vendor not tracked for Form 1099-MISC 2. Click Actions > Pay Bill/Apply Adjustment on the form toolbar, and create and release the $1000 payment dated 1/31/2014 (the day you pay the bill), as shown in the following screenshot.

154 Lesson 21: 1099 Vendors 154 Figure: Payment for a 1099 vendor's bill not tracked for Form 1099-MISC 3. On the 1099-MISC Form (AP653000), file the form for 2014 and the SOFT branch, and notice that the $1000 payment has not appeared on the form, because the 1099 box was not specified in the bill for which the payment was made, and the payment wasn't tracked as a 1099 payment in the system. 4. To correct the bill and the payment application (suppose that you later learned that the $600 of the bill should have been classified for 1099) to change the amount tracked for Form 1099MISC, do the following: a. On the Bills and Adjustments form (AP301000), open the bill that you need to correct, and copy it to a new bill. b. In the new bill, split the $1000 amount into two lines (as the screenshot shows): Ext. Cost: ; 1099 Box: 7 - Nonemployee Compensation Ext. Cost: ; 1099 Box: (empty) Figure: A part of the bill's amount classified for Form 1099-MISC c. Save and release the bill. d. On the Checks and Payments form (AP302000), select the payment that has been applied to the wrong bill. On the Application History tab, select the bill and click Reverse Application. (See the following screenshot.)

155 Lesson 21: 1099 Vendors 155 Figure: Reversal of the payment application to the wrong bill 5. On the Documents to Apply tab, add the corrected bill (see the following screenshot) and release the application. Figure: The check application applied to the corrected bill 6. On the Application History tab, review the bills to make sure that the check is now applied to correct bill (see the following screenshot).

156 Lesson 21: 1099 Vendors 156 Figure: The resulting check application 7. On the Bills and Adjustments form (AP301000), reverse the incorrect bill. To do this, click Actions > Reverse on the form toolbar, clear the 1099 box in the generated debit adjustment, release the debit adjustment, and apply the debit adjustment to the incorrect bill. Review the Application History tab of the debit adjustment to make sure that bill has been reversed and closed (see the following screenshot). The default 1099 Box (if any 1099 box is associated with an expense account or specified for a 1099 vendor) is inserted into every document that you create for the vendor. Therefore, when you reverse a document for a 1099 vendor, you have to make sure that the 1099 box is specified in the lines of the reversing document exactly as for these lines in the reversed document. In this example, you reverse a non-classified bill with no 1099 Box specified in the lines, so you have to clear the 1099 Box in the lines of the reversing debit adjustment too. Figure: The reversed bill 8. On the 1099-MISC Form (AP653000), file the form for the SOFT branch for 2014, and notice that the payment for the vendor now appears on the form, as shown in the following screenshot.

157 Lesson 21: 1099 Vendors 157 Figure: 1099-MISC Form for the SOFT branch for 2014 Related Links Support for U.S MISC Form Filing the Form 1099 MISC Electronically

158 Check Yourself 158 Check Yourself After you have completed Lesson 21: 1099 Vendors, answer the following questions. Each question has only one correct answer. Then, check yourself using the key at the end of the topic The user needs to create a bill for an independent contractor in the system, but there is no 1099 Box column on the Document Details tab of the Bills and Adjustments form (Finance > Accounts Payable > Work Area > Enter), where they can specify the box number by Form 1099-MISC. Which step was missed during the 1099 vendor implementation for the user? a) The 1099 Vendor check box wasn't selected for the vendor account on the Vendors form (Finance > Accounts Payable > Work Area > Manage) b) The 1099 Box number wasn't specified for the vendor account on the Vendors form c) The expense accounts weren't specified for 1099 boxes on the Accounts Payable Preferences form (Finance > Accounts Payable > Configuration > Setup) If a vendor account is configured as a 1099 vendor in the system, can users process a payment for this vendor so that it is not reported on Form 1099-MISC? a) Yes b) No Where do users specify the 1099 box number for the amount to be reported on Form 1099-MISC for a vendor? a) In the line of the vendor s bill b) In the payment (AP check) to the vendor Do users have to close a calendar year for 1099 payments to be able to prepare the Form 1099MISC for the next calendar year? a) Yes b) No A user closes a year by using the Close 1099 Year form (Finance > Accounts Payable > Processes > Closing). Does that mean that the financial periods of the year are automatically closed in the Accounts Payable module? a) Yes b) No What happens when a user closes a calendar year by using the Close 1099 Year form (Finance > Accounts Payable > Processes > Closing)? a) No Accounts Payable payments can be processed for 1099 vendors in the closed calendar year. b) No Accounts Payable bills can be processed for 1099 vendors in the closed calendar year. c) Any documents can be processed in the closed calendar year if the Allow Posting to Closed Periods option is selected on the General Ledger Preferences form (Finance > General Ledger > Configuration > Setup). How can you import the year-to-date amount of 1099 payments for a vendor if the company migrates to Acumatica ERP in the middle of a calendar year? a) Import an AP bill with the amounts classified by 1099 boxes, and release the AP bill in the system. b) Process an AP bill for the vendor with the amounts classified by 1099 boxes, and reverse the batch that has been generated from the bill to reverse the impact on the General Ledger.

159 Check Yourself c) Process a quick check for the vendor with the amounts classified by 1099 boxes, and reverse the batch that has been generated from the quick check to reverse the impact on the General Ledger. Can you export the amounts to be printed on Form 1099-MISC from the system to an Excel file? a) Yes b) No Which report can you use to view the list of documents with 1099 payment amounts to be reported on Form 1099-MISC for a vendor? a) 1099 Year Summary (Finance > Accounts Payable > Reports > Audit) b) 1099 Year Details (Finance > Accounts Payable > Reports > Audit) c) AP Balance by Vendor (Finance > Accounts Payable > Reports > Balance) Key to Test Questions: 1. a; 2. a; 3. a; 4. b; 5. b; 6. a; 7. c; 8. a; 9. b.

160 Review Questions 160 Review Questions Answer the following questions to prepare yourself for the certification test: How can you process payments through the corporate credit card in the system? In which priority does the system select vendor prices to suggest in Accounts Payable documents? What are the advantages of vendor price worksheets? Take the Test Now take the online Certification Test 6: Accounts Payable at Acumatica University.

161 Part 7: Accounts Receivable 161 Part 7: Accounts Receivable In this part of the course, you will apply customer payments to open documents by using the autoapplication functionality of the system. Also, you will configure different prices for customers so that you can easily create customer invoices. Then you will configure the discount codes that apply to invoices based on different conditions. Finally, you will configure the system for processing credit card payments that you want to accept from customers. As a result of the lessons of this part, you will have configured customer-specific prices and discount codes. You will also have configured the payment method for processing customer payments by credit card. The lessons of this part should be completed on the F200Init database. You can continue to use the database where you have completed the lessons of the previous part.

162 Company Story: Accounts Receivable 162 Company Story: Accounts Receivable The management of the Software Inc. company wants to implement the following advanced business processes in the system: Auto-applying payments to invoices. The Software Inc. accountant wants to auto-apply payments received from Boulder Couriers Denver to this customer's open invoices. Keeping the catalog of customer prices in the system. The Software Inc. sales manager wants to configure a flexible pricing strategy in order to provide different prices to customers depending on the purchased service, the date of purchase, and some other conditions. Applying discounts to services purchased by loyal customers. The Software Inc. company offers line, document, and group discounts on services delivered to customers. The sales manager wants to configure the discounts so that they will be applied automatically to appropriate purchases made by loyal customers. Accepting customer payments by credit card. The Software Inc. company has customers who purchase services regularly. These customers want to pay their invoices by credit card, and the company has decided to accept credit card payments. The company has set up a merchant account through MyBank and purchased a payment gateway service from Authorize.Net to be able to accept credit card payments and process them in Acumatica ERP. From the merchant account, MyBank will deposit the funds into the checking account of the Software Inc. company in the same bank. In this part of the course, you will learn how to set up the processing of customer payments by credit card, how to configure auto-application of payments to invoices, how to set up different pricing categories, and how to configure discount codes.

163 Lesson 22: Auto-Application of Payments 163 Lesson 22: Auto-Application of Payments A company can have many payments and many invoices. To avoid manually matching multiple invoices to payments, Acumatica ERP provides the payment auto-application functionality. The system provides payment auto-application for three situations: For newly entered payments, you can use the auto-application of payments when they are released. For newly entered invoices, you can use the auto-application of payments when the invoice is released. For open (already released) payments and credit memos, you can run the auto-application process. In this lesson, you will apply the customer payments to open invoices by using the auto-application functionality of the system. Thus, you will perform the following tasks: 1. Auto-applying a new payment to open invoices 2. Auto-applying an open payment to a new invoice 3. Auto-applying open payments to outstanding documents by running the auto-application process 1. Auto-Applying a New Payment to Open Invoices You can use auto-application when you create customer payments in the system. Proceed as follows to enter the $25,000 payment received from Boulder Couriers Denver on 2/1/2014 and auto-apply it to open invoices of this customer on payment release: 1. Select SOFT as the current branch. 2. On the Customers form (AR303000; Finance > Accounts Receivable > Work Area > Manage), select the C (Boulder Couriers Denver) customer, and select the Auto-Apply Payments check box on the General Info tab to enable the auto-application of payments for the customer account. 3. On the Payments and Applications form (AR302000; Finance > Accounts Receivable > Work Area > Enter), enter and release the payment from Boulder Couriers Denver, which has the following settings: 4. Type: Payment Customer: C (Boulder Couriers Denver) Payment Method: CHECK Cash Account: SOFT Application Date: 2/1/2014 Application Period: Payment Ref.: B Description: Payment Payment Amount: On the Application History tab, review the INV invoice, to which the payment has been automatically applied. (See the following screenshot.) Notice that after the application, the invoice retains a balance of $ When you release a payment that has been received from a customer for which the AutoApply Payments check box is selected, the system automatically applies the payment to open documents of this customer, if there are any. The payment is applied first to overdue charges

164 Lesson 22: Auto-Application of Payments 164 and then to invoices and debit memos if the Apply Payments to Overdue Charges First check box is selected on the Accounts Receivable Preferences form (AR101000; Finance > Accounts Receivable > Configuration > Setup). Otherwise, the payment is applied to open invoices, debit memos, and overdue charges, starting from the oldest documents by their due date. Figure: Invoice to which the payment is auto-applied The payment has been applied in its full amount and therefore is closed. 2. Auto-Applying an Open Payment to a New Invoice You can auto-apply open payments when you create new invoices in the system. Perform the following instructions to enter the new $500 invoice from Jevy Computers and auto-apply the payment on release of the invoice: 1. On the Invoices and Memos form (AR301000; Finance > Accounts Receivable > Work Area > Enter), enter the invoice from Jevy Computers with the following settings: Type: Invoice Customer: C (Jevy Computers) Date: 2/1/2014 Post Period: Description: Services delivered On the Document Details tab, add the line that shows the $500 revenue received by the Software company: 2. Branch: SOFT Ext. Price: Account: (Sales - Consulting Services) Subaccount: Review the Applications tab, which displays the $2000 payment that can be applied to the invoice (see the screenshot below).

165 Lesson 22: Auto-Application of Payments 165 Figure: Payment that can be auto-applied to the invoice 3. Click Auto-Apply on the table toolbar. The Amount Paid now displays the maximum amount that can be applied to the invoice ($500). Before you release the invoice, the Applications tab shows the list of documents that can be applied to the invoice, including payments and credit memos. In the Amount Paid column, you can specify the application amount for the needed documents, and the system will apply all documents that have a non-zero Amount Paid to the invoice. 4. Release the invoice. The payment has been automatically applied to the invoice (see the screenshot below). Figure: The payment auto-applied to the released invoice In a similar way, you can apply open credit memos and prepayments to new invoices by using the Applications tab of the Invoices and Memos form (AR301000).

166 Lesson 22: Auto-Application of Payments Auto-Applying Open Payments to Outstanding Documents by Running the Auto-Application Process Suppose that on 2/28/2014, you decided to apply all open payments to outstanding documents. Run the auto-application process for the customer payments: 1. Open the Auto-Apply Payments form (AR506000; Finance > Accounts Receivable > Processes > Recurring) and select the following settings: Application Date: 2/28/2014 Application Period: Apply Credit Memos: Cleared Release Batch When Finished: Selected The application date and the application period will be inserted into the applications that will be created by the system during the process. You select the Release Batch When Finished check box to make the system automatically release the applications after auto-application. If the check box is cleared, the applications will be created but not released, and you can review the applications on the Documents to Apply tab of each payment on the Payments and Applications form (AR302000); you can then release them. You left the Apply Credit Memos check box cleared because you don't need to include the credit memos in the auto-application process. 2. In the table, select the EOM (end of month) statement cycle. Figure: Configuration of the auto-application process By selecting the statement cycle, you specify the group of customers for which the system will run the auto-application process. When you run the process, the system searches for open payments of the customers that are assigned to the selected statement cycle (you can select multiple statement cycles at once). In this course, all customers are assigned to the EOM statement cycle. Therefore, the system will search for open payments of all customers in the system. Additionally, you can enable the warning that appears on the Prepare Statements form (AR503000; Finance > Accounts Receivable > Processes > Statement Cycle) if the user is going to prepare customer statements while there are unapplied customer payments for the statement period in the system. To enable the warning, on the Statement Cycles form (AR202800), select the Require Payment Application Before Statement Processing check box for the statement cycle. 3. Click Process to run the auto-application of payments to documents. When you run the process, the system searches for all open payments of all customers assigned to the statement cycle. The detected payments are applied first to overdue charges and then to invoices and debit memos if the Apply Payments to Overdue Charges First check box is selected on the Accounts Receivable Preferences form (AR101000). Otherwise, the payments are applied to open invoices, debit memos, and overdue charges, starting from the oldest documents by their due date. If you want to include credit memos in the auto-application process, select the Apply Credit Memos check box before running the process; with this check box selected, the system searches for all open payments and credit memos and applies them to the outstanding

167 Lesson 22: Auto-Application of Payments 167 documents, as described above. The payments and credit memos are applied starting from the oldest documents by their document date. After the process is complete, you can find the documents to which the payment was applied on the Application History tab of each payment and credit memo on the Payments and Applications form (AR302000). 4. On the Payments and Applications form (AR302000), select the $2000 Jevy Computers payment that has been automatically applied to the open invoices of this customer, in order to review the applications. On the Application History tab (see the following screenshot), note that the payment has been auto-applied to three invoices in the order of their due dates. The oldest $368 and $540 invoices have been fully paid and therefore are closed; the third invoice has been partially applied and retains a $3489 balance. Figure: Payment applied to invoices

168 Lesson 23: Customer Prices 168 Lesson 23: Customer Prices To simplify entering documents in the system, you can create and keep the catalog of customer prices for stock items and non-stock items in the system. Acumatica ERP provides the following pricing mechanisms for maintaining sales prices: Price lists: By using price lists, you can define flexible pricing strategies. You can define different promotional and non-promotional prices for groups of customers and for individual customers, and you can set prices that depend on the quantity of the purchased item. The system keeps the history of the price changes. Default prices: You can use default prices to define prices for non-stock items. The system does not keep a history of default prices. To define and update multiple prices at once, you can create and release sales price worksheets. After you have released a sales price worksheet, the system updates the sales price list for items, so that you can use these prices in customer invoices and sales orders if the Distribution suite is in use. When you create an invoice and select a non-stock item in a document line, the system automatically suggests the appropriate price as the unit price of the item in the line. If the Distribution suite is in use, you can maintain price lists for stock items similarly to the maintenance of price lists for non-stock items. Using the Distribution suite and stock items is outside of the scope of this course, however. On the Sales Price Worksheets form (AR202010), you can create a sales price worksheet manually or upload the list of customer prices from an Excel file. After you release the worksheet, the sales prices defined in the worksheet become effective starting on the specified date and appear on the Sales Prices form (AR202000). On the Sales Prices form (AR202000), you can review the list of prices defined in the system and update individual prices. For each item in a a sales price worksheet, you can define prices of different levels. In a document where you select the item, the system suggests the price by using the following priorities, from the highest priority to the lowest one: 1. The price specified for the customer. If there is no such price, the search continues. 2. The price specified for the customer price class of the customer. If there is no such price, the search continues. 3. The price specified for the predefined Base customer price class (base price). If there is no such price, the search continues. 4. The default price of the non-stock item (not used in this course). Default price does not have effective period and cannot be promotional. The following principles apply at every level of the search for an applicable price: If a promotional price is effective on the document date, the system suggests the promotional price. If there is no applicable promotional price, the system suggests the regular price if its effective date is not later than the document date. If neither the promotional price nor the regular price effective on the document date is specified, the system searches for the price at the lower level. The system always searches for the price by using the priorities described above; it doesn't select the best price for the customer. The following diagram illustrates the priority of customer prices:

169 Lesson 23: Customer Prices 169 Figure: Priorities of the customer prices for a single item in the system In this lesson, you will create and release a sales price worksheet to define the customer prices for services that the Software Inc. company provides to their customers. Then, you will see how the system selects the price depending on different conditions. After that, you will create two more worksheets and see how the system keeps the history of price changes. Thus, in the lesson, you will complete the following tasks: 1. Creating a sales price worksheet 2. Analyzing how the system suggests a sales price 3. Analyzing how the system keeps the history of sales prices 1. Creating a Sales Price Worksheet The Software Inc. company provides different prices on services purchased by customers, and offers promotional prices for partners. To create a list of sales prices in the system, complete the following tasks: 1. Specify the PARTNER customer price class for customers C and C To do this: a. On the Customer Price Classes form (AR208000; Finance > Accounts Receivable > Configuration > Setup), add a record for the PARTNER customer price class with the following settings: Price Class ID: PARTNER Description: Partners Sort Order: 1

170 Lesson 23: Customer Prices b. On the Customers form (AR303000; Finance > Accounts Receivable > Work Area > Manage), select customer C , and select PARTNER in the Price Class ID box on the Delivery Settings tab. c. On the Customers form (AR303000), select customer C , and select PARTNER in the Price Class ID box on the Delivery Settings tab. On the Sales Price Worksheet form (AR202010; Finance > Accounts Receivable > Work Area > Enter), create and save the sales price worksheet with the regular prices. To do this: a. Specify 1/1/2014 in the Effective Date box. b. On the table toolbar, click Load Records From File and upload the sales price worksheet from the SalesPrices_AdvConcepts_1_1_2014.xlsx file. While you are uploading the worksheet, leave the default column mapping. The resulting worksheet looks like that shown in the following screenshot. Save the worksheet. Figure: Sales price worksheet preloaded from the file For the CONSULT, SUPPORT, and CSTMZATION non-stock items, you have uploaded base prices, customer-specific prices for the C customer, and prices for the PARTNER price class. If you need to correct the prices, you can do this directly on the Sales Price Worksheet form (AR202010). Alternatively, you can correct the Excel file and re-upload the worksheet. 3. On the Sales Prices form (AR202000), review the list of sales prices. Currently, there are no prices, because the worksheet that you've created is not released yet. 4. Back on the Sales Price Worksheet form (AR202010), release the sales price worksheet. 5. Return to the Sales Prices form (AR202000), and make sure the prices appear. On this form, you can filter out the prices by any specific customer price class, non-stock item, customer, effective date, and other criteria. 6. On the Sales Price Worksheet form (AR202010), create another sales price worksheet with promotional prices. To speed up data entry, you can copy the existing prices and use them as source prices for calculating pending prices by performing the following steps:

171 Lesson 23: Customer Prices 171 a. On the Sales Price Worksheet form (AR202010), create a new sales price worksheet and select the Promotional check box. b. Specify 1/1/2014 as the Effective Date and 2/28/2014 as the Expiration Date. c. Click Copy Prices on the table toolbar. In the Copy Prices dialog (displayed on the screenshot below), specify the following settings for copying: Source section, Price Type: Customer Price Class Source section, Price Code: PARTNER Source section, Effective As Of: 1/1/2014 Source section, Promotional Price: Cleared Destination section, Price Type: Customer Price Class Destination section, Price Code: PARTNER Figure: Settings for copying prices specified in the Copy Prices dialog You can copy only actual prices that are displayed on the Sales Prices form (AR202000). Prices from non-released worksheets cannot be copied. d. To calculate promotional prices based on the source prices that you have copied, click Calculate Pending Prices on the table toolbar. In the Calculate Pending Prices dialog (displayed on the screenshot below), specify the following settings, and click Update: % Of Original Price: 90

172 Lesson 23: Customer Prices 172 Price Basis: Source Price Figure: Settings specified in the Calculating Pending Prices dialog e. Review the pending prices that have been calculated (see the image below), and release the worksheet. Figure: Sales price worksheet with promotional prices for the PARTNER customer price class 7. On the Sales Prices form (AR202000), review the prices specified for the PARTNER customer price class.

173 Lesson 23: Customer Prices 173 If there are multiple customer prices in the system, you can filter the records that you want to see on the Sales Prices form, as shown in the screenshot below.. Figure: Promotional and regular prices specified for the PARTNER customer price class As you can see, each non-stock item now has two prices defined: a promotional price effective until 2/28/2014, and a regular price that becomes effective after the promotional price expires. If the Volume Pricing feature is enabled in the system, at each level, you can define different prices broken down by item quantity. The mechanism is similar to quantity pricing described in Lesson 20: Vendor Prices. 2. Analyzing How the System Suggests a Sales Price Now you can analyze how the system suggests the unit price depending on the priorities of the different types of prices. You don't have to save the invoices you create in this task; they are for demonstration purposes only. On the Invoices and Memos form (AR301000; Finance > Accounts Receivable > Work Area > Enter), create the invoices, and analyze how the system suggests prices: 1. Create an invoice dated 1/1/2014 for the C customer, and add two lines with the CONSULT and SUPPORT non-stock items, respectively. The C customer is assigned to the PARTNER customer price class. For this customer, the system suggests the promotional price specific for the customer price class ($81 for CONSULT and $171 for SUPPORT). 2. Change the invoice date to 3/1/2014. Because the promotional prices are no longer effective on this date, the system suggests the regular prices for the customer price class ($90 for CONSULT and $190 for SUPPORT). 3. Create an invoice for 1/1/2014 for the C customer and add two lines with the CONSULT and SUPPORT non-stock items, respectively. The C customer is assigned to the PARTNER customer price class and has customerspecific price defined. The customer-specific prices have a higher priority than the promotional prices defined for the PARTNER customer price class; therefore, the system suggests the customer-specific prices ($80 for CONSULT and $180 for SUPPORT). 4. Create an invoice for 1/1/2014 for the C customer, and add two lines with the CONSULT and SUPPORT non-stock items, respectively. The C customer isn't assigned to any customer price class and does not have customer-specific price defined. The system suggests the regular prices that are defined for

174 Lesson 23: Customer Prices 174 the Base customer price class and effective on 1/1/2014 ($100 for CONSULT and $200 for SUPPORT). 3. Analyzing How the System Keeps the History of Sales Prices The Retention Type setting, which is selected on the Accounts Receivable Preferences (AR101000) form, determines how the system keeps the history of prices. The default setting is Last Price, which means that by default, the system keeps the new price defined in the worksheet and the previous regular price. Alternatively, you can select Fixed Number of Months as the Retention Type and specify the number of months for which the system will keep the price history. (This way of keeping the history of prices is demonstrated in Lesson 20: Vendor Prices.) Perform the following instructions to create and release two more worksheets, and analyze how the system maintains one last price when you release new prices: 1. On the Accounts Receivable Preferences form (AR101000; Finance > Accounts Receivable > Configuration > Setup), on the Price Discount Calculation tab, make sure that Last Price is selected in the Retention Type box. 2. On the Sales Price Worksheet form (AR202010; Finance > Accounts Receivable > Work Area > Enter), create a sales price worksheet effective on 3/1/2014 as follows: a. Create a new worksheet, and specify 3/1/2014 as the Effective Date. b. Click Copy Prices on the table toolbar. In the Copy Prices dialog, specify the following settings: c. d. 3. Source section, Price Type: Base Source section, Effective As Of: 1/1/2014 Source section, Promotional Price: Cleared Destination section, Price Type: Base Click Calculate Pending Prices on the table toolbar. In the Calculate Pending Prices dialog, specify the following settings and click Update: % Of Original Price: 110 Price Basis: Source price Release the worksheet to make the system update the effective sales prices. On the Sales Prices form (AR202000), select Base in the Price Type box and review the base prices, as shown in the following screenshot.

175 Lesson 23: Customer Prices 175 Figure: Base regular prices on the Sales Prices form Notice that the system keeps two prices for each item current price and the previous one (the last price). To avoid overlapping prices, the system has automatically specified the expiration date for the last prices (2/28/2014) as the last date before the date when the new regular prices become effective (3/1/2014). 4. On the Sales Price Worksheet form (AR202010), create the sales price worksheet effective starting on 4/1/2014 as follows: a. Create a new worksheet, and specify 4/1/2014 as the Effective Date. b. Click Copy Prices on the table toolbar. In the Copy Prices dialog, specify the following settings: c. d. 5. Source section, Price Type: Base Source section, Effective As Of: 3/1/2014 Source section, Promotional Price: Cleared Destination section, Price Type: Base Click Calculate Pending Prices on the table toolbar. In the Calculate Pending Prices dialog, specify the following settings, and click Update: % Of Original Price: 110 Price Basis: Source price Release the worksheet to make the system update the effective sales prices. On the Sales Prices form (AR202000), select Base in the Price Type box and review the base prices, as shown in the following screenshot.

176 Lesson 23: Customer Prices 176 Figure: New regular prices on the Sales Prices form Notice that the sales price list still has two prices for each item. The new regular prices are effective starting on the specified effective date (4/1/2014), and the previous regular prices become the last prices, which expired on 3/31/2014. The previous last prices are no more available. The Overwrite Overlapping Prices check box on the Sales Price Worksheet form (AR202010) specifies how the system automatically fixes overlapping prices. Suppose that you have the following price records for an item: $80, effective from 1/1/2014 through 6/30/2014 $90, effective starting on 7/1/2014 Further, suppose that we need to increase the price to $85 starting on 4/1/2014 and keep the $90 price for the second half of the year. To do this, you need to clear the Overwrite Overlapping Prices check box. The system will insert one more price record for the item, so that the sales prices will be as follows: $80 effective from 1/1/2014 through 3/31/2014 $85 effective from 4/1/2014 through 6/30/2014 $90 effective from 7/1/2014 With the Overwrite Overlapping Prices check box selected, the $90 price will be overwritten and you will have the following prices: $80 effective from 1/1/2014 through 3/31/2014 $85 effective from 4/1/2014 Related Links Multiple Price Lists Sales Price Worksheet Effective Period of Prices

177 Lesson 24: Customer Discounts 177 Lesson 24: Customer Discounts In Acumatica ERP, you can configure discounts of three different types: Line discounts, which are applied to a document line Document discounts, which are applied to the document's total Group discounts, which are applied to one document line or multiple lines Discounts can be automatic or manual. When you create an invoice or memo on the Invoices and Memos form (AR301000; Finance > Accounts Receivable > Work Area > Enter), the system applies any automatic discounts that are defined in the system. Automatic discounts are applied in the following order: 1. The best available line discount is applied to the extended price of a line. The extended price after the line discount is displayed in the Amount column of the line. The total amount of all the lines is displayed in the Detail Total box of the document summary. 2. All applicable group discounts are applied to the corresponding group totals except the lines that are automatically excluded from the discountable amount. 3. The best available document discount is applied to the following amount: the detail total minus the total of all line discounts minus the group discount total. The Discount Total box holds the sum of the group discount total and the document discount amount. The prices and discounts that you define in the Accounts Receivable module can also be used in the Sales Orders module of the Distribution suite. The final document amount after all deducted discounts is displayed in the Balance box of the invoice summary. The Balance amount equals the Detail Total minus the Discount Total of the document. When you release the invoice, the AR account is debited in the amount of the invoice balance and the sales account is credited in the amount of the detail total. If the discount (expense) account isn't specified in the customer account, the discount total is debited to the sales account. Discounts can be promotional that is, effective during a specified period of time. To define a promotional discount, select the Promotional check box in the discount summary and specify the effective and expiration dates. You can specify prorated discounts. Suppose that the customer purchases 50 hours of service in the total amount of $1000 ($20/hour). Further, suppose that you give a discount broken down by quantity as follows: 5 hours: 5% 10 hours: 10% 15 hours: 15% If the discount is non-prorated, the customer would receive the 15% discount on the entire amount ($1000 * 0.15 = $150), and the amount after the discount would be $ $150 = $850. If the discount is prorated, the system would apply the discount incrementally: For = 45 hours, the discount would be 15% (0.15 * 45 * 20 = $135), and for the remaining 5 hours, the discount would be 5% (0.05 * 5 * 20 = $5). Therefore, the amount after the prorated discount is applied would be $ $135 - $5 = $860. As a result, the prorated discount amount is less than the amount of the non-prorated discount (in the example, $140 prorated versus $150 non-prorated). To specify a prorated discount, select the Prorate Discount check box on the Discounts form (AR209500) for the discount. In this lesson, you will configure the discounts that your company gives on services delivered to their customers. Complete the following tasks: 1. Configuring line discounts 2. Configuring a document discount 3. Applying a manual line discount 4. Configuring a group discount

178 Lesson 24: Customer Discounts Configuring Line Discounts Perform the following instructions to configure two line discounts and see how they are applied in an invoice: 1. On the Customers form (AR303000; Finance > Accounts Receivable > Work Area > Manage), for the C customer (KRK Consulting Service), on the Delivery Settings tab, select the PARTNER customer price class in the Price Class ID box. 2. Define the automatic line discount of 5% that you give for consulting and customization services if the customer purchases five or more hours of the service as follows: a. On the Discount Codes form (AR209000; Finance > Accounts Receivable > Configuration > Manage), add a record for the line discount code with the following settings: Discount Code: LI Description: Line discount item Discount Type: Line Applicable To: Item Auto-Numbering: Selected The specified line discount code can be applied to a line, depending on the non-stock item specified in this line. b. On the Discounts form (AR209500; Finance > Accounts Receivable > Work Area > Manage), define the 5% line discount that corresponds to the LI discount code and may be applied depending on the purchased quantity of the CONSULT and CSTMZATION nonstock items: a. In the Discount Code box, select LI to create a discount for this code and then specify the following settings for the discount: Discount By: Percent Break By: Quantity Description: Line discount item 5% To avoid creating numerous discount codes of the same type, you can create discount sequences that is, discounts with different conditions based on the same discount code. For example, based on the LI discount code shown above, you could create another discount: a 10% line discount for the ADVERT and CONSULT items. If you create overlapping LI discounts, the system will select the best available discount. Thus, if two LI discounts are defined (5% for CONSULT and CSTMZATION, and 10% for ADVERT and CONSULT), the system will suggest a 5% discount for the CSTMZATION item, and a 10% discount for the ADVERT and CONSULT items in an invoice line. b. On the Items tab, add the CONSULT and CSTMZATION non-stock items to the table. c. On the Discount Breakpoints tab, add a row and specify the following settings: d. Pending Break Quantity: 5.00 Pending Discount Percent: 5.00 Pending Date: 1/1/2014 On the form toolbar, click Save and then click Update Discounts.

179 Lesson 24: Customer Discounts 179 You can apply line discounts to either the extended price or the unit price of the line. By default, line discounts apply to the extended price of the line because the Item Extended Price option is selected in the Apply Line Discount box on the Price/Discount Calculation tab of the Accounts Receivable Preferences form (AR101000; Finance > Accounts Receivable > Configuration > Setup). To apply line discounts to the unit price of the line, instead select the Item Price option. The option sets the calculation base for all line discounts that you define in the system. 3. Proceed as follows to define the automatic line discount of 3% that you give to customers that are assigned to the PARTNER customer price class if they purchase five or more hours of any service: a. On the Discount Codes form (AR209000), add a record for the line discount code with the following settings: Discount Code: LCPC Description: Line discount customer price class Discount Type: Line Applicable To: Customer Price Class Auto-Numbering: Selected The specified line discount code can be applied to a line, depending on the customer price class specified in this line. b. On the Discounts form (AR209500), do the following to define the 3% line discount that depends on the line quantity purchased by customers of the PARTNER customer price class: a. In the Discount Code box, select LCPC to create a discount for this code. b. Specify the following settings for the discount: Discount By: Percent Break By: Quantity Description: Line discount customer price class 3% c. On the Customer Price Classes tab, add a row to the table for the PARTNER customer price class. d. On the Discount Breakpoints tab, add a row and specify the following settings: Pending Break Quantity: 5.00 Pending Discount Percent: 3.00 Pending Date: 1/1/2014 This row defines the 3% discount that you give when customers of the selected customer price class purchase five or more hours. e. On the form toolbar, click Save and then click Update Discounts. 4. On the Invoices and Memos form (AR301000), select SOFT as the currentbranch, and create an invoice for the C customer for 1/1/ On the Document Details tab (see the screenshot below), add three lines with the following settings:

180 Lesson 24: Customer Discounts 180 Lines to be added on the Document Details tab Inventory ID Quantity Unit Price CONSULT 3 90 SUPPORT CSTMZATION Figure: Discounts applied to the lines of the invoice The system has applied the best available discount to each line in the invoice. In the line with the CONSULT non-stock item, the discount is zero because the quantity is less than 5 hours. (Notice that the Discount Code column is empty for this line.) In the line with the SUPPORT nonstock item, the discount is 3%, the discount that you give to the customers of the PARTNER customer price class; notice the LCPC discount code. (This discount is the only line discount that can be applied to this line.) In the line with CSTMZATION, the discount is 5% (see the LI discount code), which is the best available discount of the 5% discount that you give for the item and the 3% discount that you give to the customers of the PARTNER customer price class. You can make the system ignore automatic line discounts if a special price is defined for the customer on the item that is selected in the document line. To do this, on the Price/Discount Calculation tab of the Accounts Receivable Preferences form (AR101000), select the Ignore Configured Discounts When Customer-Specific Price is Defined check box. 6. Save the invoice but do not release it so that you can edit the document. 2. Configuring a Document Discount Perform the following instructions to configure a document discount and see how it is applied in an invoice: 1. Define the automatic document discount of $10 that is given to the C customer if it purchases services in the amount of $1000 or more: a. On the Discount Codes form (AR209000), add a record for the document discount code with the following settings: Discount Code: DC

181 Lesson 24: Customer Discounts 181 Description: Document discount customer Discount Type: Document Applicable To: Customer Auto-Numbering: Selected The specified document discount code can be applied to the detail total, depending on a particular customer. b. On the Discounts form (AR209500), define the $10 document discount, which depends on the detail total amount of the C customer, as follows: a. In the Discount Code box, select DC to create a discount for this discount code. b. Specify the following setting for the discount: Discount By: Amount Description: Document discount customer $10 c. On the Customers tab, add a row to the table for the C customer. d. On the Discount Breakpoints tab, add a row and specify the following settings: Pending Break Amount: Pending Discount Amount: Pending Date: 1/1/2014 In this row, you have defined the $10 discount that you give to the customer when it purchases services in the amount of $1000 or more. e. 2. On the form toolbar, click Save and then click Update Discounts. On the Invoices and Memos form (AR301000), select the invoice that you have created for the C customer for 1/1/2014. To recalculate the discounts in the document, on the form toolbar, select Actions > Recalculate Prices and Discounts; enter the settings listed below in the opened Recalculate Prices and Discounts dialog, click OK, and save your changes to the form: Recalculate: All Lines Set Current Unit Prices: Selected Override Manual Prices: Cleared Recalculate Discounts: Selected Override Manual Line Discounts: Cleared Because the Detail Total is greater than $1000, the system has applied the $10 document discount to the invoice. (See the following screenshot.) On the Discount Details tab, you can see the applied document discount.

182 Lesson 24: Customer Discounts 182 Figure: Recalculated discounts for the invoice 3. On the Discount Codes form (AR209000), for the LCPC discount code, select the Exclude From Discountable Amount check box, and click Save. 4. On the Invoices and Memos form (AR301000), again select the invoice that you have created for the C customer for 1/1/2014. On the form toolbar, select Actions > Recalculate Prices and Discounts; in the opened Recalculate Prices and Discounts dialog, select the following settings and click OK: Recalculate: All Lines Set Current Unit Prices: Selected Override Manual Prices: Cleared Recalculate Discounts: Selected Override Manual Line Discounts: Cleared No document discount is applied because the discountable amount is $270 + $475 = $745, which is less than $1000. Thus, the Discount Details tab is empty. The $485 amount of the line with the SUPPORT item has been excluded from the discountable amount of the detail total because you have excluded from the discountable amount the LCPC line discount, which applies to the line. 5. In the line with CSTMZATION, change the quantity to 10.00, and save these changes. Now the discountable amount is greater than $1000. On the Discount Details tab (see the following screenshot), you can see that the document discount has been applied to $1220 of the Detail Total of $1705. The amount to which the document discount has been applied is the Detail Total minus the total amount of lines to which automatically excluded line discounts apply. Because the invoice has one automatically excluded line, the discountable amount to which the document discount applies is $ $485 = $1220.

183 Lesson 24: Customer Discounts 183 Figure: Recalculated discounts for the invoice 3. Applying a Manual Line Discount Perform the following instructions to apply the LI line discount as a manual discount: 1. On the Discount Codes form (AR209000), for the LI discount code, select the Manual check box and save your changes. 2. On the Invoices and Memos form (AR301000), again select the invoice that you have created for the C customer for 1/1/2014. On the form toolbar, select Actions > Recalculate Prices and Discounts, and in the opened Recalculate Prices and Discounts dialog, select the following settings and click OK: Recalculate: All Lines Set Current Unit Prices: Selected Override Manual Prices: Cleared Recalculate Discounts: Selected Override Manual Line Discounts: Cleared In the line with CSTMZATION (shown in the following screenshot), the best available automatic line discount is 3% (the discount with the LCPC discount code that comes from the PARTNER customer price class). The LI discount code is now manual and therefore is not used in the automatic selection of the best available line discount. Figure: Recalculated discounts 3. To specify the LI discount code manually, in the line with the CSTMZATION item, select LI in the Discount Code box, as the following screenshot illustrates. Save your changes to the invoice.

184 Lesson 24: Customer Discounts 184 Figure: Discounts applied to the invoice The 5% line discount now is applied to the line. The Manual Discount check box is selected, which indicates that either the discount has been manually selected in the line or the discount percent or discount amount has been manually changed in the line. Thus, you can specify the needed Discount Percent or Discount Amount in a line instead of selecting the Discount Code. 4. Configuring a Group Discount To configure a group discount and test how its settings affect how it is applied, perform the following instructions: 1. Perform the following instructions to define the automatic group discount of 5%, which you give to the customers assigned to the PARTNER customer price class if they purchase 5 or more hours of the consulting and customization service: a. On the Discount Codes form (AR209000), add a record for the group discount code, which can be applied to the group total depending on a combination of a customer price class and a non-stock item, and specify the following settings: Discount Code: GCPC0I Description: Group discount customer price class and item Discount Type: Group Applicable To: Customer price class and item Auto-Numbering: Selected The specified group discount code can be applied to the group total depending on a combination of a customer price class and a non-stock item. b. On the Discounts form (AR209500), define the 5% group discount with the GCPC0I discount code as follows: a. Select GCPC0I in the Discount Code box to create a discount with this code. b. Specify the following settings: Discount By: Percent Break By: Quantity Description: Group discount customer price class and item 5% c. On the Items tab, add the CONSULT and CSTMZATION items to the table. d. On the Customer Price Classes tab, add the PARTNER customer price class to the table. e. On the Discount Breakpoints tab, specify the following settings: Pending Break Quantity: 5.00 Pending Discount Percent: 5.00

185 Lesson 24: Customer Discounts 185 Pending Date: 1/1/2014 In this row, you have defined the 5% discount that you give to a customer of the PARTNER customer price class that purchases five or more hours of the CONSULT or CSTMZATION service, starting on 1/1/2014. f. 2. On the form toolbar, click Save and then click Update Discounts. On the Invoices and Memos form (AR301000), again select the invoice that you have created. On the form toolbar, select Actions > Recalculate Prices and Discounts; enter the following settings in the Recalculate Prices and Discounts dialog, click OK, and save your changes: Recalculate: All Lines Set Current Unit Prices: Selected Override Manual Prices: Cleared Recalculate Discounts: Selected Override Manual Line Discounts: Cleared The 5% group discount has been applied to the $1220 group total of the CONSULT and CSTMZATION lines because their total quantity is 13, which is greater than 5. The total quantity of these lines meets the group discount condition: for each line, both the item and the customer price class are ones that are required for the group discount. The document discount is applied to the discountable amount, which equals the Detail Total minus the automatically excluded line amounts minus the group discount total: $ $485 - $61 = $1159. On the Discount Details tab (see the following screenshot), you can see the applied group and document discounts. Figure: Group discount applied to the invoice You can enable a warning to appears on the Invoices and Memos form (AR301000) if the average discount percent in the document exceeds the limit specified for the customer class in the Group/ Document Discount Limit (%) box on the Customer Classes form (AR201000; Finance > Accounts Receivable > Configuration > Setup). The average discount percent is equal to the total Discount Amt. divided by the total Discountable Amt. on the Discount Details tab. 3. On the Discount Codes form (AR209000), in the row with the GCPC0I discount code, select the Skip Document Discounts check box, and save your changes.

186 Lesson 24: Customer Discounts On the Invoices and Memos form (AR301000), again select the invoice. On the form toolbar, select Actions > Recalculate Prices and Discounts; in the Recalculate Prices and Discounts dialog, specify the following settings, click OK, and save your changes: Recalculate: All Lines Set Current Unit Prices: Selected Override Manual Prices: Cleared Recalculate Discounts: Selected Override Manual Line Discounts: Cleared The $10 document discount has been removed, as the screenshot below shows. Because the document has a group discount for which the Skip Document Discounts check box is selected, the system doesn't apply the document discount. Therefore, the final Discount Total of the invoice is $61 and the Balance is $ The Balance amount equals $1705: the Detail Total minus the Discount Total of the document. If you want to remove a group or document discount from a certain document so that it will never apply to this particular document (even after a user edits lines or recalculates the prices and discounts in the document, select the Skip Discount check box for the discount on the Discount Details tab. You can also add manual group and manual discounts to the document by using this tab. Figure: Recalculated discounts for the invoice 5. Release the invoice and review the generated batch (see the following screenshot).

187 Lesson 24: Customer Discounts 187 Figure: Batch generated on release of the invoice The final invoice balance after all deducted discounts ($1,644) is debited to the AR account, while the detail total ($270 + $485 + $950 = $1,705) is credited to the sales account. The discount total ($61), which includes the group and document discounts, is debited to the sales account; you can specify the discount (expense) account for the customer to post the discount totals to it. Line discounts were applied to individual lines of the document and deducted from the line amounts before the detail total was calculated. Therefore, the line discounts aren't included in any posted amounts.

188 Lesson 25: Customer Payments by Credit Card 188 Lesson 25: Customer Payments by Credit Card Acumatica ERP supports processing credit card payments through the Authorize.Net payment gateway. Acumatica ERP interacts with the payment gateway in the PCI DSS compliant mode. The diagram below shows how the payments are processed across Acumatica ERP, the payment gateway, and the company's merchant and bank accounts. Figure: Credit card payment process To track customer payments made by a credit card, you create a cash account that represents the merchant account in the system. Then, to process a payment in the system, you need to do the following: 1. You process the credit card payment through the gateway. You can authorize, capture, void, and refund the CC payment. You can process credit card payments in the Accounts Receivable module of the Finance suite and in the Sales Orders module of the Distribution suite of Acumatica ERP. Also, you can develop your own Acumatica ERP plug-in to integrate the credit card processing in the system with a payment gateway other than Authorize.Net. For example, suppose that you have authorized and captured $100 from a credit card. The information and status of the credit card processing transactions that have been executed at the payment gateway appear in the details of the Accounts Receivable payment. After the credit card payment is captured, you release the AR payment in the system and the following transaction is generated: Merchant account Dr, $100 Accounts Receivable Cr, $100

189 Lesson 25: Customer Payments by Credit Card You receive a daily merchant statement that shows the settlement amount deposited to your bank account by the end of the operating day. To reconcile the settlement amount with the credit card payments, you can review the credit card processing transactions in the system and in the merchant interface of the payment gateway. Suppose that you have only one $100 credit card payment and the settlement amount is $100, so that the amounts are reconciled. 3. After the settlement amount and the total amount of credit card payments are reconciled, you process the deposit in the amount of the settlement from the merchant account to the bank account in the system. On release of the deposit, the system generates the following transaction: Merchant account Cr, $100 Bank account Dr, $100 In the bank statement, the settlement also appears as a deposit in the account; therefore, you can more easily reconcile the bank account balance after you have processed the deposit in the system. In this lesson, you will configure the system for processing credit card payments and then see how to process the payments in test mode. You will perform the following tasks: 1. Configuring the processing center to connect to the gateway 2. Configuring the payment method that represents payments by credit card in the system 3. Creating the customer payment methods that represent particular cards 4. Processing the credit card payments 5. Reconciling transactions in the merchant account 6. Processing the settlement to the bank account 1. Configuring the Processing Center Perform the following instructions to configure the processing center: 1. Create the SOFT cash account, which represents the merchant account in the system, as follows: a. On the Chart of Accounts (GL202500; Finance > General Ledger > Configuration > Manage) form, add the asset account and specify the following settings: Account: Account Class: CASHASSET Type: Asset Description: Merchant Account You have to define one asset account for each currency in which you accept credit card payments to the merchant account. In this course, you use only one currency, so you accept credit card payments in only one currency. b. On the Cash Accounts form (CA202000; Finance > Cash Management > Work Area > Manage), create the SOFT cash account for the merchant account of the Software Inc. company with the following settings: Cash Account: SOFT Account: (Merchant Account) Subaccount: Branch: SOFT

190 Lesson 25: Customer Payments by Credit Card 190 Description: Merchant Account Software Inc. Clearing Account: Selected Restrict Visibility with Branch: Selected Requires Reconciliation: Selected Reconciliation Numbering Sequence: CARECON You have configured the merchant account as a clearing account so you can process deposits in the system from the merchant account to the bank account for easier reconciliation of the bank account with the bank statement. 2. Create the AUTHNETUSD processing center as follows: a. On the Processing Centers form (CA205000; Finance > Cash Management > Configuration > Setup), create the AUTHNETUSD processing center with the following settings: Proc. Center ID: AUTHNETUSD Name: Authorize.Net USD Cash Account: SOFT Active: Selected Payment Plug-In (Type): PX.CCProcessing.AuthorizeNetTokenizedProcessing Transaction Timeout (Sec.): 0 The Transaction Timeout (Sec.) setting is not used for the tokenized plug-in, because the connection timeout for the tokenized plug-in is defined by the TIMEOUT parameter on the Settings tab. The processing center represents the connection to the payment gateway for the credit card processing transactions in a certain currency. The cash account specifies the currency in which the system will make the authorization and capture transactions to the gateway. The selected Payment Plug-In is a built-in credit card processing plug-in that interacts with the payment gateway in PCI DSS compliant mode. In this mode, the customer is identified between the system and the gateway by the customer profile ID, and the credit card is identified by the payment profile ID. Sensitive information of the credit card is neither stored in Acumatica ERP nor transferred between the system and the payment gateway. b. To use the payment gateway in test mode, on the Settings tab, specify the connection settings listed in the table below and save the changes. Test mode connection settings for Authorize.Net ID Value APIURL MERCNAME Enter the API Login ID of your sandbox account here TESTMODE 1 TIMEOUT 10 TRANKEY Enter the Transaction Key of your sandbox account here To get a test account at the Authorize.Net payment gateway, you have to create a sandbox account at (see the following

191 Lesson 25: Customer Payments by Credit Card 191 screenshot) with the Card Not Present account type. After you create an account, you will get the credentials to use in payment processing (API Login ID and Transaction Key). The payment processing credentials API Login ID and Transaction Key are not the Login ID and Password that you receive from Authorize.Net to access the Merchant Interface. By using the sandbox account's Login ID and Password, you can sign in to the sandbox Authorize.Net Merchant Interface ( where you can review the transactions that have been processed at the gateway and manage the registered credit cards. Figure: Credentials for payment processing For information on settings for live mode, see the Setup of Card Payment Processing topic in the Acumatica ERP User Guide. c. After you have specified the credentials, click Test Credentials to check the connection settings. d. Configure the Acumatica ERP website for HTTPS connections. The secure connection with a Secure Socket Layer (SSL) certificate is required for making transactions to the Authorize.Net payment gateway through the Acumatica ERP website. For information on how to configure the website for HTTPS, see the Configuring the Website for HTTPS topic. The connection to the payment gateway is ready. Now you have to create a payment method for credit cards. 2. Configuring the Payment Method That Represents Payments by Credit Card You can create one payment method for all credit cards. Alternatively, to categorize payments in Acumatica ERP by card payment system, you could create a payment method for each payment system supported by the gateway and specify the same merchant account for all payment methods. To create a payment method for the payments by credit card, do the following: 1. Proceed as follows to create the VISA payment method to accept customer payments through a Visa credit card:

192 Lesson 25: Customer Payments by Credit Card 192 a. On the Payment Methods form (CA204000; Finance > Cash Management > Configuration > Setup), create the VISA payment method with the following information: Payment Method ID: VISA Means of Payment: Credit Card Description: Visa card payments Use in AP: Cleared Use in AR: Selected Require Remittance Information for Cash Account: Cleared b. On the Settings for Use in AR tab, select the Integrated Processing check box. c. On the Processing Centers tab, add a record for the AUTHNETUSD processing center with the following settings: d. Proc. Center ID: AUTHNETUSD Active: Selected Default: Selected On the Allowed Cash Accounts tab, add the SOFT cash account to the table, select the following settings for the cash account and save your changes: Use in AR: Selected AR Default: Selected AR - Suggest Next Number: Selected AR Last Reference Number: You have configured automatic assignment of payment reference numbers to AR payments that have the VISA payment method and the SOFT cash account because you have to number AR payments in the system. The payment reference number will be automatically inserted into the Payment Ref. box of the AR payment when you select the VISA payment method and the SOFT cash account for a payment. The first payment will get in Payment Ref. 2. On the Cash Accounts form (CA202000), select the SOFT cash account. In the table on the Clearing Accounts tab, add a row for the SOFT cash account with the Payment Method and Charges Type columns empty. MyBank will deposit funds from the merchant account to the SOFT checking account. To be able to process the deposits in the system, you have specified the merchant account as the clearing account for SOFT. 3. Creating the Customer Payment Methods That Represent Particular Cards Suppose that the Bestype Image and Precision Photos customers want to pay their invoices by Visa credit card. For the Visa card of each of these customers, you have to create the customer payment method that will represent this card in the system. Proceed as follows: 1. Do the following to create the customer payment method for the Visa card of the Bestype Image customer: a. On the Customers form (AR303000; Finance > Accounts Receivable > Work Area > Manage), select the C (Bestype Image) customer, and on the table toolbar of the Payment Methods tab, click Add Payment Method.

193 Lesson 25: Customer Payments by Credit Card 193 b. On the Customer Payment Methods form (AR303010; Finance > Accounts Receivable > Work Area > Manage) that appears for adding the customer payment method, specify the following settings: Customer: C Payment Method: VISA Proc. Center ID: AUTHNETUSD Cash Account: SOFT c. On the table toolbar of the Payment Method Details tab, click Create New to link the customer's card to the payment method. d. In the Add Payment pop-up window of the Authorize.Net payment gateway that appears, enter the information about the customer's Visa card. Specify the following settings and click Save: Card Number: (the demo Visa card number you have received with your Authorize.Net sandbox account) Expiration Date: 12/15 (any date that is greater than the current date; Authroize.Net checks the date in test mode) Address: 12 Great Street (any address; required for Visa) Zip: (any code; required for Visa) The card information is sent from the browser directly to the payment gateway. When you create the first payment method of a customer, the payment gateway generates the Customer Profile ID, which is then used to identify the customer across the payment gateway and your system. As soon as you enter the customer's card information, the payment gateway generates the Payment Profile ID, which is then used to identify the customer's card across the payment gateway and your system. The Customer Profile ID and the Payment Profile ID are saved to the customer payment method instead of any information of the card. The Card/Account No. box displays the card identifier in the system, which consists of the payment method ID and the last four numbers of the credit card. This format complies with PCI DSS. To add another Visa card of the same customer, you have to create another payment method of this customer and click Create New on the Payment Method Details tab to link another card with the new payment method. Now you can process payments from the Visa card of the Bestype Image customer. 2. On the Customer Payment Methods form (AR303010), create customer payment method for the Visa card of the C (Precision Photos) customer in the similar way as you do this for the Visa card of the Bestype Image customer. (You can use the ****-****-****-8888 Visa card number that you got with your sandbox account.) If you delete a card through a merchant interface, you have to manually delete the corresponding customer payment method in the system. If you delete a customer payment method that represents a customer's card in the system, Acumatica ERP will automatically request that the gateway delete the card on its side if you select the Synchronize Deletion with Processing Center check box for the processing center on the Processing Centers form (CA205000). 4. Processing the Credit Card Payments Process the credit card payments from the Bestype Image and Precision Photos customers as follows: 1. On the Accounts Receivable Preferences form (AR101000; Finance > Accounts Receivable > Configuration > Setup), select the Integrated CC Processing check box and save your changes.

194 Lesson 25: Customer Payments by Credit Card 194 This setting makes the credit card processing steps required for Accounts Receivable payments so that you cannot release a card payment in the system until you capture the payment through the gateway and the payment is automatically released in the system on capture. We recommend that you select the Integrated CC Processing check box if you accept credit card payments. If the check box is cleared, you can release the card payments independently from processing through the gateway. 2. Set the business date to 2/1/ On the Payments and Applications form (AR302000; Finance > Accounts Receivable > Work Area > Enter), do the following to capture the $ payment for the INV invoice from the Visa card of the Bestype Image customer: a. b. Create a payment with the following settings: Type: Payment Customer: C (Bestype Image) Payment Method: VISA Card/Account No: VISA:****-****-****-0027 Cash Account: SOFT Application Date: 2/1/2014 Application Period: Payment Ref.: (assigned automatically) Deposit After: 2/1/2014 Description: Credit card payment Payment Amount: On the Documents to Apply tab, select the INV invoice with the $ amount paid, and on the form toolbar, select Actions > Capture CC Payment. The credit card payment has been successfully captured through the gateway and released in the system. On the Credit Card Processing Info tab (shown below), you can see the information and status of the authorize and capture transaction at the gateway. The AR payment has been automatically released after the capture. Figure: Captured payment on the Credit Card Processing Info tab To review all credit card processing transactions that have been executed at the payment gateway within the specified period of time, you can use the Payment Processing Log form (AR406500; Finance > Accounts Receivable > Work Area > Explore). To review the transactions for a certain credit card, you can use the Payment Method Transaction History form (AR406000; Finance > Accounts Receivable > Work Area > Explore) and select the card in the Identifier box on the form. 4. On the Payments and Applications form (AR302000), create a payment with the following settings in order to capture the payment for the invoice of $25780: Type: Payment

195 Lesson 25: Customer Payments by Credit Card Customer: C (Precision Photos) Payment Method: VISA Card/Account No: VISA:****-****-****-8888 Cash Account: SOFT Application Date: 2/1/2014 Application Period: Payment Ref.: (assigned automatically) Deposit After: 2/1/2014 Description: Credit card payment Payment Amount: Documents to Apply, Document Type: Invoice, Reference Nbr.: INV000043, Amount Paid: Review your Authorize.Net sandbox account ( Assuming that there are no other transactions in your merchant account, in the merchant interface of Authorize.Net, you will see the $ total of unsettled transactions for 2/1/2014. You can use the Generate Payments form (AR511000; Finance > Accounts Receivable > Processes > Credit Card Processing) to generate payments from invoices in which a customer's credit card is selected in the default payment information of the invoice. Then you can capture multiple payments at once by using the Capture Payments form (AR511500; Finance > Accounts Receivable > Processes > Credit Card Processing). For regular processing, you can schedule the payment generation and the payment capturing processes on these forms. 5. Reconciling Transactions in the Merchant Account On 2/2/2014, you receive the merchant statement that shows $ settled to your bank account for the 2/1/2014 operating day. Perform the reconciliation of the merchant account balance in the system as follows: 1. On the Reconciliation Statements form (CA302000; Finance > Cash Management > Work Area > Enter), select the SOFT cash account. 2. Create the reconciliation statement with the Reconciliation Date set to 2/2/2014 and the Statement Balance set to Select the Reconciled check box for both transactions in the table and save your changes. The Difference becomes $0.00, as you can see in the following screenshot. Figure: Reconciliation statement for 2/2/2014

196 Lesson 25: Customer Payments by Credit Card 196 The merchant account balance is reconciled with the statement balance when the Reconciled Balance and the Statement Balance are equal for the selected transactions in the reconciliation statement, thus the reconciliation is complete. For the selected transactions, the Reconciled Balance is equal to the Statement Balance. Therefore, the balance of the merchant account is reconciled with the bank statement. 4. Release the reconciliation statement. 6. Processing the Settlement to the Bank Account Make the $ deposit from the SOFT to the SOFT cash account in the system as follows: On the Bank Deposits form (CA305000; Finance > Cash Management > Work Area > Enter), create a deposit with the following information: Tran. Type: CA Deposit Cash Account: SOFT Document Ref.: (you can specify the number from the merchant statement) Deposit Date: 2/2/2014 Fin. Period: Description: Settlement On the Payments tab, add the two credit card payments that you have processed on 2/1/2014 to the deposit. Figure: Deposited credit card payments The total of captured payments in the system must equal the settlement amount shown in the merchant statement. The settlement amount is deposited from the merchant account to the bank account by the end of the operating day. You can process the merchant account fees and the payment gateway fees as the disbursement cash entries in the merchant account in the system. Alternatively, you can create the vendor accounts for the merchant account provider and the payment gateway provider, and process the fees as AP bills. 3. Release the deposit. On the Cash Account Transactions form (CA303000; Finance > Cash Management > Work Area > Explore), select the SOFT cash account and review the transactions from 2/1/2014 through 2/28/2014.

197 Lesson 25: Customer Payments by Credit Card 197 You can see the $ deposit transaction on 2/2/2014 in the cash account. (See the following screenshot.) You will be able to reconcile the deposit transaction with the next bank statement for 2/28/2014. Figure: Transactions for SOFT cash account for February 2014 Related Links Card Payments Setup of Card Payment Processing

198 Configuring the Website for HTTPS 198 Configuring the Website for HTTPS This information is provided for reference; it is not a required reading in this course. A secure connection with a Secure Socket Layer (SSL) certificate is required for making transactions to the Authorize.Net payment gateway through the Acumatica ERP website. The following instructions explain how to set up the Acumatica ERP website for HTTPS. As the Microsoft IIS documentation states, the steps for configuring SSL for a site include the following: 1. Get an appropriate certificate. (For the purposes of completing the course, you can create a selfsigned server certificate.) 2. Create an HTTPS binding on a site. 3. Test the website by making a request to the site. 4. Configure SSL options (optional). Suppose that the Acumatica ERP instance runs on localhost. You would do the following: Create a self-signed certificate as follows: a. In the Control Panel, open Administrative Tools > IIS Manager (Internet Information Services). b. In the Features view, double-click Server Certificates. c. Click Create Self-Signed Certificate in the Actions pane. d. Enter a user-friendly name for the new certificate, and click OK. Do the following to create an SSL Binding: a. Select a site in the tree view, and click Bindings in the Actions pane. b. In the bindings editor, click Add to add your new SSL binding to the site. c. In the Type drop-down list, select https. d. Select the self-signed certificate you created, and click OK. 3. Reboot the machine. 4. In the Actions pane, under Browse Web Site, click the link associated with the binding you just created (Browse*:443(https)). The browser will display an error page because the self-signed certificate was issued by your computer, not by a trusted Certificate Authority. 5. Click Continue to this website (not recommended). 6. The HTTPS website opens.

199 Review Questions 199 Review Questions Answer the following questions to prepare yourself for the certification test: What are the possible ways of automatic application of customer payments to invoices? What is the priority of customer prices to be suggested in Accounts Receivable documents? How can you process credit card payments from customers in the system? Take the Test Now take the online Certification Test 7: Accounts Receivable at Acumatica University.

200 Part 8: Data Migration 200 Part 8: Data Migration In this part of the course, you will import into the system trial balances, general ledger transactions, vendor and customer records, and open documents. For Software Inc., you will import the trial balances for all periods of the 2013 financial year. For Computers Inc., you will import the general ledger transactions from the previous system into Acumatica ERP. After that, you will import the vendor and customer records to the system and then import the open Accounts Payable and Accounts Receivable documents of the Software Inc. company for In this part, you will start from the completely configured system with preloaded import scenarios. As the result of the lessons of this part, the data that was used in the preceding lessons of this course will be migrated to the system. The lessons of this part should be completed on the F200TBImported database.

201 Company Story: Data Migration 201 Company Story: Data Migration The companies have migrate to Acumatica ERP from another system and started using Acumatica ERP in January For the Software Inc. company, you have to import the following data into the system: Trial balances for twelve periods of 2013 Customer records Vendor records Open AP and AR documents Transactions for unreconciled documents: outstanding checks and the deposit in transit to the company's checking account as of 12/31/2013 For the Computers company, you have to import the following data into the new system: General ledger transactions for the period Customer records Vendor records The Software Inc. company began operating in January 2013, and the company needs to have the balances for all periods of 2013 in the new system. For training purposes, you will import the trial balances for only the last two financial periods of the year 2013 for the company ( and ). (The database that you were using in the previous parts of the course includes the trial balances of all periods of 2013 for the Software Inc. company.) The Computers Inc. company started its operations in December 2013, and you will import the company's transactions for only this period. The companies share the same vendor records and customer records; therefore, you have to import a single list of vendor records and customer records for both companies. You will import the customer and vendor records with their IDs as exported from the old system, and then enable auto-numeration so that new vendor and customer accounts will automatically get the new ID from the specified sequence. The vendor and customer balances are automatically calculated by open documents in the system. If you don't want to import particular documents of a vendor or customer, you can import just the balance as a document with one line that specifies the year-to-date (YTD) balance of the vendor or customer. For the training purposes of this course, you will import particular Accounts Payable and Accounts Receivable documents that have one or multiple document lines. For the Software Inc. company, you will import open AP and AR documents for the last period prior to starting Acumatica ERP use that is, After the import procedure completes, you have to verify the imported data. In the last lesson of this part, you will import a few unreconciled transactions for the checking account of the Software Inc. company and the last reconciliation result for the account so that the accountant can continue the bank reconciliation in the new system. In this part, you will learn how to import the financial data and the business accounts into the system by using the provided import scenarios.

202 Preparing Import Scenarios 202 Preparing Import Scenarios This information is provided for reference and not a required reading in this course. To import financial data other than trial balances and import business accounts, you can use import scenarios. The import scenarios have been preconfigured for this course and provided in the training database. Constructing import scenarios is outside of the scope of the course. The following sections provide an overview of the preconfigured import scenarios: 1. Preparation of import scenarios 2. Import GL transactions scenario 3. Import Vendors scenario 4. Import AP Documents scenario 5. Import Customers scenario 6. Import AR Documents scenario 1. Preparation of Import Scenarios An import scenario is an instruction for the system that specifies the actions to be executed for each record of the imported data as if the data is entered manually on the specified form. You can construct an import scenario for any data entry form. You can also use import scenarios for updating data in the existing records. To prepare an import scenario, you have to create a data provider and compose the import scenario mapping. Each import scenario refers to external fields that are described in a certain data provider. The data provider defines the data source type (Excel), the name of the spreadsheet that should be used for the data import, and the list of the columns on the spreadsheet and their data types. Data providers are defined on the Data Providers form (SM206015; System > Integration > Manage). After you have created a data provider for the scenario, you construct an import scenario on the Import Scenarios form (SM206025; System > Integration > Manage). The import scenario defines the mapping of the source columns to the destination fields of the entry in the system. The Mapping tab holds the list of steps of the scenario to import the records into the system as if each record is manually entered through the corresponding data entry form for example, the GL transactions import scenario imports records as they would be entered through the Journal Transactions form (GL301000). For each imported record, the system executes the mapping steps one after another in the order in which they are listed on the Mapping tab. In the Source Field/Value column, for each target object, you can specify an expression that defines the value to be inserted into the target object. If you don't specify a field in the mapping, the system will use the default value for the field that is, the system will insert the default value as it would insert the value when a user manually entered the data on the form. If you specify a field in the mapping but do not provide a value for it in the source data, the system will insert an empty string or 0 into the destination field. For more information on the constants and formulas that are used to specify values in the predefined import scenarios in this course, see Constants and Formulas in Import Scenarios. 2. Import GL Transactions Scenario To import GL transactions, you will use the provided Import GL Transactions import scenario, which defines how the data from the source file should be imported as batches of transactions into the system. The following settings are required for import of a GL transaction (journal entry): 1. Batch Summary (see the Target Object column on the screenshot below): Batch Number (at least for grouping of journal entries)

203 Preparing Import Scenarios Transaction Date Post Period Originating Branch (if you use more than one branch in the system) Transaction Details: Destination Branch (if you use more than one branch in the system) Account Subaccount (if you use subaccounts in the system) Debit amount Credit amount Review the preconfigured Import GL Transactions import scenario for GL transactions, shown in the following screenshot. Figure: The Import GL Transactions scenario 3. Import Vendors Scenario To import vendor accounts, you will use the provided Import Vendors import scenario, which defines how the data from the master file should be imported as vendor accounts into the system. The following parameters are required for a vendor account: 1. Vendor ID 2. Vendor Name 3. Vendor Class 4. Country 5. Cash Discount Account 6. Cash Discount Subaccount (if you use subaccounts in the system) If you specify the last three parameters for the vendor class, they will be automatically inserted into the imported vendor accounts that belong to this vendor class. For the vendor class, you can also specify other default information, including the default AP account and expense account that are used for the vendor. In the example of this course, you will use the default AP account, payment method, cash

204 Preparing Import Scenarios 204 account, cash discount account and subaccount, and prepayment account inserted from the vendor class. You don't have to import the vendor balances, because they are automatically calculated from the balance of open Accounts Payable documents that you will import further in this course. Review the preconfigured Import Vendors scenario, shown in the following screenshot. You will import a few 1099 vendors. To import a vendor account as a 1099 vendor, you have to specify the True value to be inserted into the 1099 Vendor field of the vendor. Additionally, you can import the number of the default box on Form 1099-MISC in which you are going to report most of the amounts paid to the vendor. The list of 1099 boxes is defined on the 1099 Settings tab of the Accounts Payable Preferences form (AP101000). Thus, you will import the V and V vendor accounts with the Box 7-Nonemployee Compensation category. Also, you can import (or specify later in the vendor account) the recipient's identification number for example, the social security number (SSN) or individual taxpayer identification number (ITIN), to be printed on Form 1099-MISC. The recipient's identification number is specified in the Tax Registration ID box on the Purchase Settings tab of the Vendors form (AP303000) for the vendor account. Figure: The Import Vendors scenario 4. Import AP Documents Scenario To import AP documents, you will use an import scenario that defines how the data from the source file should be imported as AP documents in the system. You will use the Import AP Documents import scenario provided for this course. You can import any AP documents, including bills, debit and credit adjustments, and AP checks. For each vendor, you can import one document or multiple documents, and each document can consist of any number of detail lines. For each document line, you have to create a row in the Excel file. In the row, you specify the document summary information and the document line information to be imported. Document lines that have the same document summary information are imported into a single document in the system. The following parameters are required for every document line to be imported: 1. Document Summary (see the Target Object column on the screenshot below): Document Type Reference Number (for grouping of document lines) Vendor ID Location (if you use the Business Account Locations feature in the system; however, it is not used in this course)

205 Preparing Import Scenarios Vendor Reference Number (if the Require Vendor Reference check box is selected on the Accounts Payable Preferences form (AP101000; Finance > Accounts Payable > Configuration > Setup)) Date Post Period Originating Branch (by default, it is the branch to which the user is logged in while creating or importing the document) AP Account (by default, it is taken from the vendor account) AP Subaccount (if you use subaccounts in the system; by default, it is taken from the vendor account) Document Details: Destination Branch (if you use more than one branch in the system) Extended Cost Account Subaccount (if you use subaccounts in the system) You can import documents with a date that is outside of the post period. You can also import the credit terms of the original document. For example, to the post period, you can import an open bill with the document date of 11/1/2013 and the credit terms of 3/7, net 30 days to have this information in the system. Review the preconfigured Import AP Documents scenario, shown in the following screenshot. Figure: The Import AP Documents scenario The system will group the document lines into AP bills by the VENDOR REF number from the Excel file. In the example of this course, you have one line for each AP bill in the Excel file. To the documents, the system will assign the reference number according to the APBILL numbering sequence that is specified for auto-numbering of bills on the Accounts Payable Preferences form (AP101000). 5. Import Customers Scenario To import customer accounts, you will use the predefined Import Customers import scenario. The following parameters are required for import of a customer account:

206 Preparing Import Scenarios 206 Customer ID Customer Name Customer Class Statement Cycle ID Country Sales Account Sales Subaccount (if you use subaccounts in the system) Cash Discount Account Cash Discount Subaccount (if you use subaccounts in the system) You can specify the last four listed parameters in the customer class, and they will be automatically inserted into the imported customer accounts that belong to this customer class. In the example of this course, you will use the default statement cycle ID, sales account, cash discount account, and AR account inserted from the customer class. Customer accounts, as well as vendor accounts, must have unique IDs in the system. You can extend a customer account to be a vendor account by clicking the Actions > Extend to Vendor action on the Customers form (AR303000) Similarly, you can extend a vendor account to be a customer account by clicking the Actions > Extend to Customer action on the Vendors form (AP You don't have to import the customer balances, because they will be automatically calculated from the balance of open Accounts Receivable documents that you will import later in this course. Review the preconfigured Import Customers scenario, shown in the following screenshot. Figure: The Import Customers scenario 6. Import AR Documents Scenario To import AR documents, you will use the predefined Import AR Documents import scenario. You can import any AR documents, including invoices, memos, and AR payments. For each customer, you can import one document or multiple documents, and each document can consist of any number of detail lines. For each document line, you have to create a row in the Excel file. The following parameters are required for every document line to be imported: 1. Invoice Summary (see the Target Object column on the screenshot below): Document Type

207 Preparing Import Scenarios Reference Number (for grouping of document lines) Customer ID Location (if you use Business Account Locations feature in the system; this feature, however, is not used in this course) Date Post Period Originating branch (by default, it is the branch to which the user is logged in while creating or importing the document) AR Account (by default, it is taken from the customer account) AR Subaccount (by default, it is taken from the customer account) Document Details: Destination branch (if you use more than one branch and the Multi-Branch Support feature is enabled in the system) Extended Price Account Subaccount Review the preconfigured Import AR Documents scenario, shown in the following screenshot. Figure: The Import AR Documents scenario The system will group the document lines into AR invoices by the INVOICE REF NBR value from the Excel file. Because auto-numbering is disabled in the ARINVOICE numbering sequence, the system will import the documents with their reference numbers taken from the INVOICE REF NBR column. In the example of this course, you have AR invoices of one line and multiple lines.

208 Constants and Formulas in Import Scenarios 208 Constants and Formulas in Import Scenarios This information, which is provided for reference, is not a required reading in this course. If you use an import scenario just once for initial data migration, you can compose a very straightforward scenario, prepare the Excel file with all data in the appropriate format, and simply map the source Excel columns to the destination fields in the import scenario. If you import data regularly, you might find it useful to have an import scenario that automatically adjusts the data exported from an external system for import into the target system. To do this, in the mapping of the source columns to the destination fields in import scenarios, you can use constants, formulas, and fields of the destination object. Below are the notes about the mapping examples that are used in the import scenarios of this course. Names of Excel Columns You can use letters, numbers, spaces, and underscore (_) symbols for column names in Excel. Do not use periods in Excel column names because a period is a reserved symbol for formulas in import and export scenarios. Thus, Original Batch Number is a valid name of an Excel column, but Origin. Batch Number is invalid. Calculated Values If you prepare data for one-time import, you can calculate everything in the Excel file and use a very simple import scenario that only maps the destination fields to columns in the Excel file, as is done for AP and AR documents in the import scenarios. You can import data from Excel columns of any data type, but you cannot import from formulas. The system doesn't import a value from the column that contains an Excel formula (such as =E3+F3) and leaves the destination field empty. If you use formulas in Excel, next to a column with formula, add another column with values copied from the calculated column. Then map the value column to the destination field in the import scenario. Look at the DOC DESCRIPTION column in the OpenAPBills_ _SOFT.xlsx file. This column contains string values and is mapped to the destination Description field in the import scenario for AP documents (see the following table). Columns for import of the document description from the Excel file DOC DESCRIPTION (formula) DOC DESCRIPTION =A2&" vendor ref. "&D2&" vendor "&B2 Bill vendor ref vendor V The descriptions were first calculated in the DOC DESCRIPTION (formula) and then copied to the DOC DESCRIPTION column for import. Thus, the Description destination field of AR and AP documents is mapped as shown on the screenshot below.

209 Constants and Formulas in Import Scenarios 209 Figure: Description field in the import scenario Composed Strings If you compose a mapping formula that concatenates values from a number of source columns, you have to check each column for null as is done for the Transaction Details > Transaction Description destination field in the import scenario for GL transactions. The following mapping formula inserts a string into the destination field, which consists of the Transaction Description taken from the source column and the appended Imported text. If the Transaction Description source column is empty, the only Imported text is inserted into the destination field. If you didn't check the Transaction Description for null in the mapping formula, the system would insert empty strings into records for which the Transaction Description source column is empty. =IsNull([Transaction Description], '') + ' Imported' Default Values You can leave an Excel cell empty and specify the default value for the destination field in the import scenario. Look at the COUNTRY column in the VendorsMasterFile.xlsx Excel file. For vendors located in the United States, this column is empty in the file. In the import scenario, you specify that the default country that has been inserted from the vendor class should remain in the destination field if the country is not specified for the vendor record in the Excel file. To specify the default country source in the import scenario, you use the following formula in the mapping of the Country field to the COUNTRY column from the Excel file. =IIf([COUNTRY]=Null, [DefAddress.CountryID], [COUNTRY]) According to this formula, if the COUNTRY column is empty in the Excel file, the system inserts the value that already exists in the destination field. If the COUNTRY column isn't empty, the country from the Excel file is inserted into the imported vendor account. In import scenarios, you can refer to values of the destination fields. The DefAddress.CountryID is a reference to the internal field that represents the value in the Country destination field of a vendor record being imported into the system. In the Expression Editor of the mapping value, you can view the list of internal fields that you can use to refer to the destination fields. According to the scenario, the vendor class is inserted before the country, and the system automatically updates the vendor's country after the vendor class has been specified. Later in the scenario, the system updates the country for those records that have the country specified in the COUNTRY column of the Excel file. You cannot insert empty values into check boxes. For this reason, because you import only a few 1099 vendors, you have to specify the value of the 1099 Vendor check box for every imported record. Most

210 Constants and Formulas in Import Scenarios 210 vendors are not 1099 vendors. Therefore, you specify the default False value for the 1099 Vendor check box in the import scenario by using the following formula in the mapping. =IsNull([1099 VENDOR], 'False')

211 Cross-Check Recommendations for Data Verification 211 Cross-Check Recommendations for Data Verification This information, which is provided for reference, is and not required reading in this course. To verify the data that has been imported into the system, you can use the following methods: For customers and vendors, check that the number of the imported accounts in the system is equal to the number of customers and vendors in the source file. You can review the summary of the imported vendor accounts by using the Vendor Summary report (AP655000; Finance > Accounts Payable > Reports > Audit). For customer accounts, you can use the Customer Summary report (AR650500; Finance > Accounts Receivable > Reports > Audit). Randomly verify information imported into a customer account and vendor account. Verify the first account, the last account, and approximately 10% (randomly selected) of the total accounts. Thus, if you have imported 90 customers, verify 9 customers: the first one, the last one, and 7 chosen at random. You can review the information of an imported vendor account by using the Vendors form (AP303000; Finance > Accounts Payable > Work Area > Manage) and by using the Vendor Details report (AP655500; Finance > Accounts Payable > Reports > Audit). For customer accounts, you can use the Customers form (AR303000; Finance > Accounts Receivable > Work Area > Manage) and the Customer Details report (AR651000; Finance > Accounts Receivable > Reports > Audit). For AP and AR documents, check that the number of the imported documents in the system is equal to the number of the documents in the source file. To review the Accounts Payable documents, you can use the AP Edit report (AP610700; Finance > Accounts Payable > Reports > Audit) to see not yet released documents and the AP Register report (AP621500; Finance > Accounts Payable > Reports > Audit) to see already released documents. To review the Accounts Receivable documents, you can use the AR Edit report (AR611000; Finance > Accounts Receivable > Reports > Audit) to see not yet released documents and the AR Register report (AR621500; Finance > Accounts Receivable > Reports > Audit) to see already released documents. Make random verification of the amounts of the imported AP and AR documents. To review the document amounts, use the reports listed above.

212 Lesson 26: Import of Trial Balances 212 Lesson 26: Import of Trial Balances When you migrate the financial data to the system, you can import trial balances or general ledger transactions. If you import general ledger transactions for a period, you don't have to import the trial balance for this period because the trial balance is automatically calculated by the transactions in the system. The Software Inc. company operates starting in January For training purposes, you will import the trial balances for the and financial periods only. To do this, you need to perform the following tasks: 1. Preparing the data file to be imported 2. Importing normal balance for Import reversed balance for Preparing Data Files to Be Imported Review the provided TB_Upload_ _ xlsx file that contains trial balances for and You can import trial balances into the system from one Excel or CSV file or multiple files. The provided Excel file is prepared according to the following requirements: 1. For trial balance import, the Excel file should have the following required columns: Account, Subaccount, YTD Balance. 2. The YTD Balance column can have currency or text format in the Excel file. The optional account description column is added so users can conveniently work with the Excel file. 3. The balance of the YTD Net Income account must not be imported. You must not import this balance because it is calculated automatically from the imported balances of income and expense accounts. 4. The account balance can be split by subaccounts. If there is no specific subaccount for the account, specify (You should have the subaccounts' segment values defined in the system). If you don't use subaccounts and the Subaccounts feature is not enabled in the system, then the Subaccount column is not required for import. 5. In the YTD Balance column, you can specify the normal balances of accounts, or reversed balances. Normal balances are the debit balances of asset and expense accounts and the credit balances of liability and income accounts. If the respective debit or credit balance is positive, then you have to specify the balance with the positive sign (see the equation below). The TB_Upload_ _ xlsx file contains the normal balances of accounts for the period. To upload normal balances, you have to set the Sign of the Trial Balance option to Normal on the General Ledger Preferences form (GL102000; Finance > General Ledger > Configuration > Setup). Normal balances are used by default. For the period, the TB_Upload_ _ xlsx file contains the reversed balances of accounts. In the reversed balances, the balances of asset and expense accounts remain normal, while the balances of liability and income accounts are reversed. If the credit balance of liability and income accounts is positive, then you have to specify the balance with the negative sign. To upload reversed balances, you have to set the Sign of the Trial Balance option to Reversed on the General Ledger Preferences form (GL102000).

213 Lesson 26: Import of Trial Balances 213 The Sign of the Trial Balance option also affects the representation of the Trial Balance reports and inquiries. Before you import trial balances, you can set the appropriate normal or reversed sign, then import the trial balances. After import, you can change the Sign of the Trial Balance option to have the needed representation of reports and inquires. Figure: Normal and Reversed Balances Equation You have to import each trial balance in the following order: import the trial balance, release it, release and post the generated batch, verify the imported balances, and then import the next trial balance. You have to import the trial balances one by one because each next General Ledger batch is generated in the amount of the difference between the trial balance for the previous period and the current imported balance. If you skip a period, you might get an incorrect batch generated from the imported trial balance for the next period. If you have incorrectly imported the trial balance for a period, you can again import the correct trial balance; you don't necessarily have to reverse the incorrect batch. 2. Importing Normal Balances for To upload normal balance, make sure the Sign of the Trial Balance option is set to Normal on the General Ledger Preferences form (GL102000). Then, import the Software Inc. trial balance for as follows: 1. Select SOFT as the current branch. 2. On the Trial Balance form (GL303010), create a trial balance import entry with the following settings: 3. Branch: SOFT (Software Inc.) Import Date: 11/30/2013 Period: Description: TB import Upload the TB_Upload_ _ xlsx file, and map the source columns to the destination columns as follows: Account to Account Subaccount to Subaccount YTD Balance Normal to YTD Balance If you have uploaded incorrect balances, you can delete all records and re-upload the balances from the file.

214 Lesson 26: Import of Trial Balances Validate the uploaded entries and correct the errors as follows: a. Select the Validate action and click Process All on the table toolbar to validate all records at once. At this time, you can also merge the balances of duplicate account-subaccount pairs, if any. b. To view the errors, filter the records in the table by Error value in the Status column. Correct the errors as follows: To correct the error with an incorrect subaccount number, change MAR to in the needed cell and click Save. To correct the error with a missing subaccount, enter in the empty cell in the Imported Subaccount column and save your changes. To correct the error with an incorrect account number, change the account to and save your changes. Remove the last error entry, which is the balance calculated in the Excel file for verifying the data in the file, and save your changes. When you correct a value in a cell on the Trial Balance form (GL303010), always click Save before retrying the validation. c. 5. After you have corrected all errors, run the validation of all records in the table again. After all records have been validated, the debit total must equal the credit total so that the trial balance can be released. Release the trial balance import entry. The trial balance entry gets the number (as you can see in the following screenshot) according to the TBIMPORT numbering sequence specified in the Import Numbering Sequence box on the General Ledger Preferences form (GL102000). Figure: Trial balance for released During the release of the trial balance import entry, the system generates a GL batch. For each asset and expense account, the system generates a debit entry if the imported balance is positive or a credit entry if the imported balance is negative. For each liability and income account, the system generates a credit entry if the imported balance is positive or a debit entry if the imported balance is negative.

215 Lesson 26: Import of Trial Balances Review the generated GL batch on the Journal Transactions form (GL301000; Finance > General Ledger > Work Area > Enter), and release the batch. You may notice that the totals in the batch differ from the imported trial balance totals. For the -$80 debit balance of the Small Balances Write-Off Expense account, the system has generated the credit entry in the amount of $80. Therefore, the batch total is $1,401,238 (see the following image). Figure: Debits and credits in the GL batch generated by the system 7. Review the Trial Balance Detailed report (GL632500; Finance > General Ledger > Reports > Balance) for the SOFT branch for , which is shown in the following screenshot.

216 Lesson 26: Import of Trial Balances 216 Figure: Trial Balance Detailed for for SOFT The trial balance shows the balance of the Year-to-Date Net Income account calculated from the imported data. The total YTD Net Income is included in the Liability Total; therefore, the Assets Total is equal to the Liability Total in the report. The report shows the normal balance representation of accounts. 3. Importing Reversed Balances for For the period, the balances of accounts are reversed in the TB_Upload_ _ xlsx file. To upload the reversed balances, set the Sign of the Trial Balance to Reversed on the General Ledger Preferences form (GL102000) and save the changes. Then import the Software Inc. trial balance for as follows: Create a trial balance import entry on the Trial Balance form (GL303010; Finance > General Ledger > Work Area > Enter) with the following settings: Branch: SOFT (Software Inc.) Import Date: 12/31/2013 Period: Description: TB import Upload the TB_Upload_ _ xlsx file, and map the source columns to the destination columns as follows: Account to Account Subaccount to Subaccount YTD Balance Reversed to YTD Balance

217 Lesson 26: Import of Trial Balances Validate the uploaded entries and correct the errors as you did while importing the balance. In the trial balance, the Debit Total and the Credit Total must equal $1,504,880. At this time, the YTD balance column displays the reversed balances with the sign as they were uploaded from the file. 4. Review the Exceptions tab. Records on the Exceptions tab do not reflect mistakes. When you import the second and next trial balances, this tab shows the accounts that have a non-zero balance for the previous period in the system, but their balance for the currently selected Period hasn't been uploaded from the file. On release of the trial balance, for each account listed on the Exceptions tab, the system generates a transaction that makes the account balance zero for the period you are importing the trial balance for. If the Exceptions tab is empty, this means all accounts that have a non-zero balance in the system are listed on the Transaction Details tab for import. If you have accounts appearing on this tab, make sure the balance of these accounts should be 0 for the period you are importing the trial balance for. If the balance should be non-zero, verify the account balances in the Excel file from which you are importing the trial balance. 5. Release the trial balance and review the generated batch on Journal Transactions form (GL301000). On release of the trial balance, the system generates transactions to update the balance of accounts for the period. When you import the trial balance for the second financial period and subsequent periods, the system generates journal entries in the amount of the difference between the ending balances of the previous period and the next imported balances. Therefore, if you import the trial balance for more than one financial period, you have to release each generated batch and post the transactions before you import the trial balance for the next period; otherwise, the transactions might be generated incorrectly. Again, for each asset and expense account, the system generates a debit entry if the imported balance (or difference) is positive or a credit entry if the imported balance (or difference) is negative. However, because you have uploaded the reversed balances, for each liability and income account, the system generates a credit entry if the imported balance (or difference) is negative or a debit entry if the imported balance (or difference) is positive. 6. On the Journal Transactions form (GL301000), release the batch generated from the imported trial balance. 7. Verify the imported trial balance by reviewing the Trial Balance Detailed report (GL632500) for the SOFT branch for , shown in the following screenshot.

218 Lesson 26: Import of Trial Balances 218 Figure: Trial Balance Detailed for the SOFT branch for In the report, the positive credit balances of the liability and income accounts are shown with the negative sign, because the Sign of the Trial Balance option is set to Reversed on the General Ledger Preferences form (GL102000). The YTD Net Income account doesn't show up in the reversed balance representation of the trial balance reports. 8. After you finish the import, set the Sign of the Trial Balance option to Normal,and review the Trial Balance Summary for The trial balance for the last period of 2013 should be as shown in the following screenshot. Figure: Trial balance for SOFT for

219 Lesson 27: Import of General Ledger Transactions 219 Lesson 27: Import of General Ledger Transactions The Computers Inc. company started operating in December Suppose that you have no branch information in the transactions exported from the previous system. In this case, you can import the transactions as transactions of one of the company branches, such as WEST or EAST. In this lesson, you will use the preconfigured Import GL Transactions scenario to import the General Ledger transactions of the Computers Inc. company for the period. (Constructing import scenarios is outside of the scope of this course.) Perform the following steps: 1. Import the Computers Inc. company's transactions for the period from the provided GL_Transactions_ _COMP.xlsx file into the system as follows: a. Select the WEST branch as the current branch. b. Select the Import GL transactions scenario on the Import by Scenario form (SM206036; System > Integration > Process). c. Click Upload File Version, and upload the latest version of the GL_Transactions_ _COMP.xlsx file. The structure of the uploaded Excel file must match the structure defined in the data provider and used in the import scenario. The structure includes the name of the spreadsheet, the names of the columns in the file, the data type in columns, and the order of columns on the spreadsheet. If you have changed the file structure, you have to update the data provider and then update the import scenario, if needed. Only then you can upload the updated Excel file to the Import by Scenario form (SM206036) to import the data. d. Click Prepare to upload the data from the file. Before running the import process, you can review the uploaded data on the Prepared Data tab and manually correct any value, if needed. To remove incorrectly uploaded data from the table on the Prepared Data tab and reupload the data from the file, click Roll Back on the History tab. Then you can upload a new version of the file and click Prepare on the form toolbar to upload the data from the updated file. e. Click Import to import the transactions from the Excel file into the system. The records that have the Active check box selected will be imported into the system. f. After the process is complete, select False for the Processed column to filter records in the table, so that you can review the errors. To cancel the filter and view the list of all uploaded records, select Clear Filter for the Processed column. A selected check box in the Processed column means that the record has been successfully imported into the system. Not all records were imported, so the status is Partially Processed. You see the error in the last record imported from the Excel file: the row of totals calculated in the Excel file, which you do not want to process. g. Clear the Active check box (as shown in the following screenshot) to exclude the row from processing, click Save on the form toolbar, and click Import again.

220 Lesson 27: Import of General Ledger Transactions 220 Figure: Exclusion of the row with the error from processing The system now ignores the row with totals and sets the status to Processed. You have imported the transactions into batches that correspond to the batches exported from the previous system. 2. On the Release Transactions form (GL501000), review the imported batches of transactions. You have imported the transactions to one of Computers Inc. branches, WEST. The batches have been generated with the Balanced status, which was set by the import scenario. Before you post the transactions, you can edit the information in the batches' summary area and in the journal entries, if needed. When you run the import process and get the Save button is disabled error, one possible reason is that the GL batch with such batch number already exists and cannot be edited. Figure: Imported transactions on the Release Transactions form In this course, the system already has GL batches with transactions of the Software Inc. (SOFT) branch which you have created during Lesson 26: Import of Trial Balances. Existing GL batches are automatically numbered according to the BATCH numbering sequence. If you import GL transactions into a system that already has GL batches, we recommend that you continue the numbering. To do this, import the transactions grouped into batches and assign a new batch number according to the numbering sequence you are already using for batches. The transactions can be grouped into batches by a unique batch number that doesn't exist in the system. You can import transactions grouped by their original batch number and import the original batch number into the reference number of a journal entry and into the description of the batch, as is demonstrated in this course. If there are no GL batches in the system yet, you can import transactions with their original batch number as the batch number in the new system. To do this, you have to enable manual numbering for GL batches, import the transactions with their original batch number, and then configure the numbering sequence to continue from the last imported number for new GL batches in the system. In the file of the transactions to be imported, you have a column with the transaction's batch number, Original Batch Number, which is used for grouping transactions into batches for import. In the provided import scenario, this column in the Excel file is mapped to the Batch Number field of the Batch Summary target object, which represents the batch in the system. While

221 Lesson 27: Import of General Ledger Transactions 221 uploading a transaction, the system tries to find an existing GL batch that has the same batch number as the one specified for the transaction in the Original Batch Number column in the Excel file. If the GL batch already exists, the system tries to add the transaction (journal entry) to the existing batch. If a GL batch with such number doesn't exist, the system creates a new GL batch and adds to the batch the transactions that have the same batch number in the file. 3. Release and post the batches to post the transactions to general ledger accounts. The transactions have been posted to the ACTUALCOMP ledger, to which the transactions of the WEST branch are posted. If you have posted an incorrectly imported transaction, you can reverse the batch and re-import the transaction again. 4. Review the WEST transactions posted to To do this, run the Transactions for Period report (GL633000; Finance > General Ledger > Reports > Balance) with the following parameters: Ledger ID: ACTUALCOMP Branch: WEST Start Period: End Period: The generated report is shown in the following screenshot. Figure: Transactions for period for WEST branch You can also review the Western Office (WEST) trial balance for by using the Trial Balance Summary report (GL632000; Finance > General Ledger > Reports > Balance) and Trial Balance Detailed report (GL632500; Finance > General Ledger > Reports > Balance). In the trial balance, the total debit turnover by all accounts must equal the total credit turnover: $56, You can use the Reversed representation of the trial balance to view these totals or check that the asset total turnover plus liability total turnover is equal to $56, for the Normal representation of the trial balance.

222 Lesson 28: Import of Vendors 222 Lesson 28: Import of Vendors The Software Inc. and Computers Inc. companies share the same group of vendors. In this lesson, you will import vendor accounts into the system and then enable automatic numbering to continue from the last imported vendor ID. You will use the preconfigured Import Vendors scenario. The vendor accounts will be imported from the VendorsMasterFile.xlsx file along with their IDs from the old system. Perform the following steps: 1. Import the vendors from the provided file into the system as follows: a. On the Import by Scenario form (SM206036; System > Integration > Process), select the Import Vendors scenario. b. Click Upload File Version, and upload the latest version of the VendorsMasterFile.xlsx file. c. Click Prepare to upload the data from the file. You can review the uploaded data and correct any value before you import the data into the system. If you have corrected a value, you have to click Save before you run the import process. Otherwise, the change won't take effect, and the system will try to import the old value. d. Click Import to import the vendor accounts from the Excel file into the system. The DEFAULT vendor class is preconfigured for the training course. During the import of vendor accounts that belong to this vendor class, the values of the class for any fields missing in the imported data will be inserted into the imported vendor accounts. e. Correct the following errors in the data to be imported, which were intentionally added to the file so you could gain experiencing correcting data, and retry the import: To correct errors in account numbers, change to in the needed cells, and save your changes. To correct the missing vendor class ID, enter DEFAULT in the empty cell, and click Save. To correct the incorrect vendor class ID, enter DEFAULT instead of OTHER in the cell, and save your changes. When you correct a value in a cell, always click Save before retrying the import of the corrected record. 2. After all vendor accounts are successfully processed, review the imported records by using the Vendors form (AP303000; Finance > Accounts Payable > Work Area > Manage). For instructions on how you can verify that the data was imported correctly, see Appendix B. You have imported 91 vendor accounts. All vendor accounts are visible for all branches in the system. Note that for the V and V vendors, the Utilities Expense account has also been inserted. The V , V , and V vendors have been imported as 1099 vendors. A vendor does not appear on the Vendor Summary form (AP401000; Finance > Accounts Payable > Work Area > Explore) or the Vendor Details form (AP402000; Finance > Accounts Payable > Work Area > Explore) immediately after import or manual entry because the vendor's balance isn't yet initiated in the system. The first document that you create or import into the system for the vendor initiates the vendor balance, and after that the vendor appears in inquiries and reports. 3. Perform the following instructions to enable the auto-numbering of new vendor accounts starting from V : a. On the Numbering Sequences form (CS201000; Configuration > Common Settings > Common Settings), create a numbering sequence (see the screenshot below) with the following settings and leave the default values for the other settings:

223 Lesson 28: Import of Vendors 223 Numbering ID: VENDOR Description: Vendor account number Manual Numbering: Cleared New Number Symbol: <NEW> Branch: Empty (to share the numbering sequence for records originating from all branches) Start Number: V Last Number: V Figure: The VENDOR numbering sequence b. c. On the Segmented Keys form (CS202000; Configuration > Common Settings > Segmented Keys), select the VENDOR segmented key, and specify the following settings for the auto-numbering of new vendor IDs: Numbering ID: VENDOR Segment 1, Auto Number: Selected On the Vendors form (AP303000), create a vendor with the following settings to make sure that it gets the next automatically numbered ID when you save it: Vendor ID: V (inserted automatically when you save the vendor account) Vendor Name: Effective Advertisements, Inc. City: San Francisco Country: US (United States) GL Accounts, Expense Account: (Advertising Expense) GL Accounts, Expense Sub.:

224 Lesson 29: Import of Open Accounts Payable Documents 224 Lesson 29: Import of Open Accounts Payable Documents In this lesson, you will import the open Accounts Payable bills for for the Software Inc. company. Before you import any AP documents for a financial period, make sure the total balance of open documents on each AP account is equal to the balance of the AP account according to the trial balance for the period in the system. In this lesson, you will import AP bills to the AP account and the specific migration clearing account. Then you will reverse the transaction posted to these accounts in the system, because the balance of the AP account has been imported in Lesson 26: Import of Trial Balances as a part of the trial balance for After the transaction is reversed, you will have the correct balance of the AP account in the trial balance for and the correct balance of open documents in the Accounts Payable module, from which the vendor balances are calculated. Import the open AP bills for the Software Inc. company for into the system as described below: Create the Migration Clearing Account by specifying the following settings on the Chart Of Accounts form (GL202500; Finance > General Ledger > Configuration > Manage): Account: Account Class: AP Account Type: Liability Active: Selected Description: Migration Clearing Account On the Accounts Payable Preferences form (AP101000), clear the Validate Document Totals on Entry check box to disable the requirement that the user enter the document's control total; this check box is generally selected to minimize errors during manual data entry. Before import, you could also clear the Hold Documents on Entry check box on the Accounts Payable Preferences form (AP101000) and then select the check box again after the import is complete. When the check box is cleared, new documents are created with the Balanced status and can be released right after you have imported and verified them. Alternatively (as is done in the example presented in this lesson), an import scenario instruction can be added to clear the Hold check box for every imported bill so that the bill gets the Balanced status and you don't need to change the Hold Documents on Entry setting. 3. Review the provided OpenAPBills_ _SOFT.xlsx file that contains the AP bills that is, the list of document lines to be imported. You will import the AP bills to be posted to the AP account of the vendor and the specified migration clearing account, During the import, the system automatically inserts the AP account of the vendor into the imported bills. 4. Import the AP bills from the OpenAPBills_ _SOFT.xlsx file into the system as follows: a. On the Import by Scenario form (SM206036; System > Integration > Process), select the Import AP Documents scenario. b. Click Upload File Version and upload the latest version of the OpenAPBills_ _SOFT.xlsx file. c. Click Prepare to upload the data from the file. d. Click Import to import the documents from the Excel file into the system. The Excel file contains both the originating branch for each document and the destination branch for each document line. If you do not specify the originating branch, the system will insert the branch that is selected for the user session at the moment of import. Notice that the system would not be able to execute the import scenario, if the user do not have appropriate access rights to the entities to be imported.

225 Lesson 29: Import of Open Accounts Payable Documents 225 For each bill, the system inserts the default payment method and cash account that are specified for the vendor. Thus, all vendors are assigned to the CHECK payment method and the COMP cash account, and this default information is inserted into the imported bills. By specifying these settings, you can select the imported bills on the Prepare Payments form (Finance > Accounts Payable > Processes > Payment Processing). e. Correct the following errors in the data to be imported, which were intentionally added to the file so you could get experiencing correcting data, and retry the import: To correct the incorrect vendor ID, change Y to V and save your changes. To exclude the unnecessary last row from import, clear the Active check box for the row and click Save. When you correct a value in a cell, always click Save before retrying the import of the corrected record. 5. By using the Release AP Documents form (AP501000; Finance > Accounts Payable > Processes > Daily), release all the imported bills at once. For instructions on how you can verify that the data has been imported correctly, see Cross-Check Recommendations for Data Verification. Because the Consolidated Posting to GL feature is enabled in the system, the system generates a single batch with transactions that have the same post period and currency. Otherwise, the system would generate a batch for each document. 6. On the Journal Transactions form (GL301000; Finance > General Ledger > Work Area > Enter), select the AP module, find the generated batch, and reverse the batch. 7. For the period and the Software Inc. branch, compare the balance of the Accounts Payable account according to the trial balance with the balance of this account by open Accounts Payable documents to make sure that the balances are equal: a. Review the balance of the Accounts Payable account by running the Trial Balance Summary report (GL632000; Finance > General Ledger > Reports > Balance) with the following report parameters: Ledger ID: ACTUALSOFT Branch: SOFT Financial Period: The report is shown in the following screenshot. The ending balance of Accounts Payable is $245,000.

226 Lesson 29: Import of Open Accounts Payable Documents 226 Figure: The balance of Accounts Payable for for SOFT b. Review the total of open Accounts Payable documents posted to the Accounts Payable account by running the AP Balance by GL Account report (AP632000; Finance > Accounts Payable > Reports > Balance) with the following report parameters: Report Format: Vendor Summary Branch: SOFT Financial Period: The report is shown in the following screenshot. The total balance of open Accounts Payable documents is $245,000, that is the balances are equal. Figure: The total balance of open Accounts Payable documents for for SOFT

227 Lesson 29: Import of Open Accounts Payable Documents 227 After you have open AP documents in the system, the vendor balances will be initiated, and you can review the vendor balance and documents by using the Vendor Summary form (AP401000; Finance > Accounts Payable > Work Area > Explore) and the Vendor Details form (AP402000; Finance > Accounts Payable > Work Area > Explore). 8. On the Accounts Payable Preferences form (AP101000), select the Validate Document Totals on Entry check box again to make the system require the control total for every manually entered AP document (bill, credit adjustment, and debit adjustment).

228 Lesson 30: Import of Customers 228 Lesson 30: Import of Customers In this lesson, you will import customer accounts into the system and then enable auto-numbering to continue from the last imported customer ID. To import customer accounts, you will use the preconfigured Import Customers scenario provided for this course. The customer accounts will be imported from the CustomersMasterFile.xlsx file along with their IDs from the old system. Perform the following instructions: 1. Import the customers from the provided file into the system as follows: a. On the Import by Scenario form (SM206036; System > Integration > Process), select the Import Customers scenario. b. Click Upload File Version, and upload the latest version of the CustomersMasterFile.xlsx file. c. Click Prepare to upload the data from the file. d. Click Import to import customer accounts from the Excel file into the system. The DEFAULT customer class, which is preconfigured for the training course, is assigned to all customer accounts. If any values are missing in an imported customer account, the system inserts the values (if applicable) of the customer class to which account belongs. e. Correct the following errors in the data to be imported, which were intentionally added to the file so you can get experience making corrections, and retry the import: To correct the too-long address line (the line length cannot exceed 50 symbols), enter " Wellstock Street" in the cell, and save your changes. To correct incorrect address, enter in the cell, and click Save. To correct the wrong country code, enter US in the cell instead of WW, and click Save. When you correct a value in a cell, always click Save before retrying the import of the corrected record. 2. Review the imported records by using the Customers form (AR303000; Finance > Accounts Receivable > Work Area > Manage). For instructions on how you can verify that the data was imported correctly, see Cross-Check Recommendations for Data Verification. You have imported 90 customer accounts. All customers are visible for all branches in the system. Immediately after import, a customer doesn't appear on the Customer Summary form (AR401000; Finance > Accounts Receivable > Work Area > Explore) and the Customer Details form (AR402000; Finance > Accounts Receivable > Work Area > Explore) because the customer's balance isn't yet initiated in the system. The first customer document that you create or import into the system initiates the customer balance, and after that, the customer appears in inquiries and reports. 3. Enable the auto-numbering of new customer accounts starting from C as follows: a. On the Numbering Sequences form (CS201010; Configuration > Common Settings > Common Settings), create a numbering sequence, as shown in the screenshot below, with the following settings and leave default values (if any) for the other settings: Numbering ID: CUSTOMER Description: Customer account number Manual Numbering: Cleared New Number Symbol: <NEW> Branch: Empty

229 Lesson 30: Import of Customers 229 Start Number: C Last Number: C Figure: CUSTOMER numbering sequence b. c. On the Segmented Keys form (CS202000; Configuration > Common Settings > Segmented Keys), select the CUSTOMER segmented key, and specify the following settings for auto-numbering of new IDs: Numbering ID: CUSTOMER Segment 1, Auto Number: Selected On the Customers form (AR303000), create a customer with the following settings to make sure it gets the next automatically numbered ID on when you save it: Customer ID: C (inserted automatically when you save the customer account) Customer Name: Cognitive Solutions Co City: San Francisco State: CA (California)

230 Lesson 31: Import of Open Accounts Receivable Documents 230 Lesson 31: Import of Open Accounts Receivable Documents In this lesson, you will import the open Accounts Receivable (AR) invoices for for the Software Inc company, which is represented by the SOFT branch in the system. Before you import open AR documents for a financial period, make sure the total balance of open documents on each account is equal to the balance of the AR account according to the trial balance for the period in the system. In this lesson, you will import and release the AR invoices to post their balances to the AR account and the migration clearing account. Then you will reverse the transaction posted to these accounts in the system, because the balance of the AR account has been imported earlier as a part of the trial balance for After the transaction is reversed, you will have the correct balance of the AR account in the trial balance for and the correct balance of open documents in the Accounts Receivable module, from which the customer balances are calculated. To import documents, you will use the preconfigured Import AR Documents import scenario. The open AR invoices for the Software Inc. company for will be imported from the OpenARInvoices_ _SOFT.xlsx file. To import the documents, do the following: 1. Do the following to turn off the auto-numbering of invoices before importing the documents: a. Select the ARINVOICE numbering sequence on the Numbering Sequences form (CS201010; Configuration > Common Settings > Common Settings). The ARINVOICE numbering sequence is specified for the auto-numbering of invoices on the Accounts Receivable Preferences form (AR101000; Finance > Accounts Receivable > Configuration > Setup). You want to import AR invoices with their reference numbers and then continue numbering new invoices starting with the reference number of the last imported invoice incremented by 1. b. For ARINVOICE, select the Manual Numbering check box. c. Delete the subsequence from the table, because you will add the subsequence in the needed format after you import the documents. 2. Clear the Validate Document Totals on Entry check box on the Accounts Receivable Preferences form (AR101000) to disable the requirement that the customer enter the document's control total; this check box is generally selected to minimize errors during manual data entry. 3. Import the AR invoices from the Excel file into the system as follows: a. Open the Import by Scenario form (SM206036; System > Integration > Process), and select SOFT as the current branch so that the system executes the import scenario with the access rights that are available for users in the SOFT branch. b. Select the Import AR Documents scenario. c. Click Upload File Version and upload the latest version of the OpenARInvoices_ _SOFT.xlsx file. d. Click Prepare to upload the data from the file. e. Click Import to import the documents from the Excel file into the system. Among the sample documents that you import in this lesson, there are some invoices that consist of more than one document line. You can import one line or more lines for each document, depending on the data migration requirements. For example, you can import all of a customer's outstanding invoices into a single invoice in which the document lines correspond to invoices from the source file. To do that, you can group the document lines by customer ID. (Similarly, you can import all bills of a vendor into a single outstanding bill of the vendor in the system). 4. By using the Release AR Documents form (AR501000; Finance > Accounts Receivable > Reports > Daily), release all the imported invoices at once. For instructions on how you can verify that the data has been imported correctly, see Cross-Check Recommendations for Data Verification. Because the Consolidated Posting to GL feature is enabled in the system, the system generates a single batch with transactions that have the same post period and currency.

231 Lesson 31: Import of Open Accounts Receivable Documents On the Journal Transactions form (GL301000; Finance > General Ledger > Work Area > Enter), select the AR module, find the batch, and reverse the batch. 6. For the period and the SOFT branch, compare the balance of the Accounts Receivable account by open Accounts Receivable documents with the balance of this account according to the trial balance to make sure that the balances are equal: a. Review the balance of the Accounts Receivable account by running the Trial Balance Summary report (GL632000; Finance > General Ledger > Reports > Balance) with the following report parameters: Ledger ID: ACTUALSOFT Branch: SOFT Financial Period: The report is shown in the following screenshot. The ending balance of Accounts Receivable is $483,350. Figure: The balance of Accounts Receivable for for SOFT b. Review the total of open Accounts Receivable documents posted to the Accounts Receivable account by running the AR Balance by GL Account report (AR632000; Finance > Accounts Receivable > Reports > Balance) with the following report parameters: Report Format: Customer Summary Branch: SOFT Financial Period: The report is shown in the following screenshot. The total balance of open Accounts Receivable documents is $483,350, that is the balances are equal.

232 Lesson 31: Import of Open Accounts Receivable Documents 232 Figure: The total balance of open Accounts Receivable documents for for SOFT After you have open AR documents in the system, the customer balances will be initiated and you can review the customer balance and documents by using the Customer Summary form (AR401000; Finance > Accounts Receivable > Work Area > Explore) and the Customer Details form (AR402000; Finance > Accounts Receivable > Work Area > Explore). 7. Proceed as follows to enable the auto-numbering of new invoices starting from INV (the reference number of the last imported invoice is INV000044): a. On the Numbering Sequences form (CS201010), select the ARINVOICE numbering sequence. b. In the table, add a subsequence with the following parameters: Branch: Empty Start Number: INV Last Number: INV c. Clear the Manual Numbering check box to enable auto-numbering, and save your changes. d. On the Invoices and Memos form (AR301000; Finance > Accounts Receivable > Work Area > Enter), select the SOFT branch as the current branch. Then create and release an invoice with the following settings to make sure it gets the next automatically numbered ID (according to the ARINVOICE numbering sequence): Type: Invoice Reference Nbr.: INV (inserted automatically when you save the document) Customer: C

233 Lesson 31: Import of Open Accounts Receivable Documents 233 Date: 1/1/2014 Post period: Description: 1 hour of consulting Document Details, Branch: SOFT, Ext. Price: , Account: , Subaccount: By default, the ARINVOICE numbering sequence is shared for auto-numbering of invoices and memos in the system. You can create additional numbering sequences to number debit and credit memos separately from invoices and specify these numbering sequences in the Debit Memo Numbering Sequence and Credit Memo Numbering Sequence boxes on the Accounts Receivable Preferences form (AR101000). e. After you have imported all the needed documents and you no longer need the migration clearing account, on the Chart of Accounts form (GL202500; Finance > General Ledger > Configuration > Manage), clear the Active check box for the Migration Clearing Account to deactivate the account in the system and prevent posting transactions to this account, and save your changes. f. On the Accounts Receivable Preferences form (AR101000), select the Validate Document Totals on Entry check box to enable the requirement that the customer enter the document's control total.

234 Lesson 32: Import of Outstanding Checks and Deposits in Transit 234 Lesson 32: Import of Outstanding Checks and Deposits in Transit On 12/31/2013, the accountant of Software Inc. received the bank statement with an ending balance of $123,800 for the SOFT checking account. Before importing the account balance for into the system, the accountant has reconciled the checking account balance with the bank statement. The reconciled ending balance of the checking account for is $123,000. After the review of the bank statement as of 12/31/2013, you have realized that there are two outstanding checks and a deposit in transit on the bank account. They will appear in the next bank statement that the accountant will receive on 1/31/2014. To provide the accountant with the ability to reconcile these documents with future bank statements, you have to create the transactions for currently unreconciled documents in the SOFT cash account in the system and import the last reconciliation result as of 12/31/2013. Figure: Import of transactions for further bank reconciliation In this lesson, you will perform the following tasks: 1. Creating transactions for outstanding checks and deposits 2. Enabling reconciliation for the SOFT cash account 3. Creating the reconciliation statement 4. Reviewing cash account transactions for December Creating the Transactions for the Outstanding Checks and Deposits Perform the following instructions to create the transactions for the outstanding checks and the deposit in transit: 1. Select SOFT as the current branch. 2. On the Journal Transactions form (GL301000; Finance > General Ledger > Work Area > Enter), create a new batch with the following settings: 3. Branch: SOFT Transaction Date: 12/31/2013 Post Period: Description: Unreconciled transactions for 12/31/2013 On the Journal Transactions form (GL301000), upload the transactions, listed in the table below, from the UnreconciledTransactions_ _SOFT.xlsx file.

235 Lesson 32: Import of Outstanding Checks and Deposits in Transit 235 Unreconciled documents for 12/31/2013 Branch Account Subaccount Ref. Number Debit Amount Credit Amount Transaction Description SOFT , Reverse entry for trial balance SOFT , Bank statement for 12/31/2013 SOFT , Outstanding check # /30/2013 SOFT , Outstanding check # /31/2013 SOFT , Deposit #1231 in transit 12/30/ Make sure the batch total is $132,800, and release the batch. 5. On the Cash Account Transactions form (CA303000; Finance > Cash Management > Work Area > Explore), select the SOFT cash account from 1/1/2013 to 12/31/2013. The transactions are listed for the cash account, as shown in the following screenshot, and available for bank reconciliation of the cash account. Figure: Cash account transactions for SOFT for 2013 To view the list of transactions on the cash account, you can also use the Cash Account Details report (CA633500; Finance > Cash Management > Reports > Balance).

236 Lesson 32: Import of Outstanding Checks and Deposits in Transit Enabling Reconciliation for the Cash Account Enable the bank reconciliation for the SOFT cash account in the system as follows: 1. On the Cash Accounts form (CA202000; Finance > Cash Management > Work Area > Manage), select the SOFT cash account. 2. Select the Requires Reconciliation check box. This action makes the cash account available on the Reconciliation Statements form (CA302000). 3. In the Reconciliation Numbering Sequence box, specify the CARECON numbering sequence that will be used for numbering the reconciliation statements for the account in the system. CARECON is a predefined numbering sequence to use for reconciliation statements. 3. Creating the Reconciliation Statement Create the first reconciliation statement for the SOFT cash account in the system for the 12/31/2013 bank statement: 1. On the Reconciliation Statements form (CA302000; Finance > Cash Management > Work Area > Enter), select the SOFT cash account, and create a reconciliation statement with the following information: Reconciliation Date: 12/31/2013 Load Documents Up To: 12/31/2013 Statement Balance: 123, By using this form, you can reconcile the total amount of the transactions in the cash account for a date range in the system with the balance shown in the bank statement for this period. 2. Select the Reconciled check box for all transactions except the last three that is, except for the outstanding checks and the deposit in transit, as shown in the screenshot below. The total balance of the selected transactions is displayed in the Reconciled Balance box of the statement summary (also shown in the following screenshot). By selecting transactions, you reconcile the total amount of the transactions for the SOFT cash account in the system with the balance of the bank statement for 12/31/ Clear the Cleared check box for the last three transactions. This optional step in the reconciliation process helps you to temporarily mark the transactions that haven't yet appeared in the bank statement. Then you can review the reconciled balance and the uncleared transactions in the cash account by using the Cash Account Transactions form (CA303000).

237 Lesson 32: Import of Outstanding Checks and Deposits in Transit 237 Figure: Transactions in the cash account reconciled with the bank statement for 12/31/ Clear the Hold check box and release the reconciliation statement. As soon as you release the reconciliation statement, the system updates the last reconciliation date, from which the next reconciliation statement will be calculated. The released reconciliation statement contains only transactions selected for the statement, and these transactions don't show up for reconciliation in the next reconciliation statements. 4. Reviewing the Cash Account Transactions for December 2013 On the Cash Account Transactions form (CA303000), select the SOFT cash account, and review the transactions from 12/1/2013 to 12/31/2013. Bank reconciliation doesn't affect the cash account balance in the system. Thus, the SOFT cash account balance calculated for all transactions posted up to 12/31/2013 is $123,000. The cash account balance for cleared transactions on this date is $123,800. Figure: Reconciled transactions in the cash account on 12/31/2013