Overview. Who Should Use This Chapter. Flexible Account Structure. General Ledger

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2 Overview The General Ledger (GL) maintains all aspects of your business accounting process. It contains the primary financial data from which all the financial reports are prepared. Who Should Use This Chapter This chapter of Getting Started with Minxware is for your corporate controller or those in your organization who maintain the general ledger and provide financial reporting. First-Time Users CAUTION: Before initializing the Control file, thoroughly review the information in this chapter. You must select your general ledger account structure and enter this information during the control file initialization. If you are implementing Minxware for the first time, pay close attention to the setup and initialization of General Ledger since it defines your account structure. This chapter also shows you how to initialize account balances for prior and current fiscal years. Established Users If you are an established Minxware user and want to change your account structure, see the General Ledger Maintenance chapter of Using Minxware for detailed information about this procedure. Flexible Account Structure You can setup your general ledger accounts with as few as two and as many as five segments, using up to 20 characters. During the control file initialization, the default account structure consists of three segments (a division, department and natural account) for a total of 18 characters, an example of which is shown below. However, you can define the structure based on your specific needs. 58 Getting Started with Minxware

3 Figure 1 Default Account Structure 3 Characters 3 Characters 12 Characters Division Department Natural Account Segments The structure permits up to five account segments of user-defined length, three of which are optional. The two mandatory segments are: division natural account. The three optional segments can: have up to ten characters each be named whatever you wish. The division segment determines profit and loss clearing and retained earnings accounts. Optional segments 1-3 are available to further define the account. The natural account determines currency, posting balance, and account type. NOTE: In this chapter the term account refers to posting account ID (all account segments taken together). The term natural account refers to the final segment, which determines currency and posting balance. Minxware limits the total length of the account to 20 characters, including the dashes that separate the segments. For example, having five segments allows 16 characters with four dashes, as shown in the example below. Getting Started with Minxware 59

4 Figure 2 5-Segment Account Structure 3 Characters Division 3 Char ac ters 3 Characters 3 Characters 4 Characters Optional Segment 1 Optional Segment 2 Optional Segment 3 Natural Account The example contains 3 characters each for division, segment 1, segment 2, and segment 3, and 4 characters for the natural account. Where The Segment Information Is Set Up Account segments are set up when the control file is initialized. Once set however, you cannot use the Control File Maintenance (SU,5) to change the account structure. Instead, you must convert the structure using special utility options. See the General Ledger chapter of Using Minxware for instructions about changing account structures. 60 Getting Started with Minxware

5 GL Account Types Minxware classifies accounts based on account type, which you define. Account types are used: to group related accounts on financial statements to determine the default account balance for each natural account to validate user-entered account numbers against a list of appropriate account types. Account types can consist of a ten-character field. The first character is predefined to correspond to the major accounting groups presented on reports, as shown below. 1) Assets 2) Liabilities 3) Equity 4) Sales 5) Cost of Sales 6) Operating Expenses 7) Other Expenses 8) Other Income 9) Tax Provision Major Accounting Groups After the first character, you can customize account types with up to nine additional levels. When you initialize account types Minxware creates the default structure. The account type record consists of a ten-character account type, a 30-character description, and a debit/credit balance flag. Account Type Each digit of the account type corresponds to a level (you can have up to ten). The types form a hierarchy. For example, type 1151 (General Inventory) is a child of type 115 (Inventory), which is a child of type 11 (Current Assets), which is a child of type 1 (Assets). When you enter an account it must include information about the account type. You cannot, for example, enter an inventory account without specifying which type of inventory it represents. The account type of the natural account can trigger a subtotal on a financial statement and dictate the balance (debit or credit) to print the amount. You can change the default account type structure. For instance, if you have no stocks and bonds and do not want to print that subtotal on a report, you can eliminate type 112. You can also add levels of account types. For example, you can add levels below type 6 to get subtotals for different types of operating expenses. Getting Started with Minxware 61

6 GL Account Type Validation You validate the entry of accounts in Minxware against an account type validation table which determines whether the entry of an account type for a given transaction is accepted or rejected. Account types also serve to validate entered account numbers. Many programs prompt for an account. These prompts are grouped into categories where you specify which types of accounts are valid. Print GL,RP,10 to see your settings. Prompt Category Locations The module noted in the Prompt Category (AP, AR, etc.) indicates where these account prompts primarily reside. Some prompts may appear in several modules. For example, the General Inventory prompt category (IN 1) is used wherever inventory part locations can be added, which includes certain purchasing and shop floor transactions. Remember that a prompt category like AP 1 is nothing more than a label to categorize the prompts for which a given account type validation make sense. These prompts can occur almost anywhere; they just use the same type validation. NOTE: Don t confuse prompt categories such as IN 1 with program names like Part Maintenance (IN,1). Why Have a Validation Table? The validation table permits control over account numbers entered in various options. It is incorrect, for example, to issue a part from stock and then debit an equity account. To prevent this, you would use Account Type Validation Maintenance (GL,UT,8) to specify the valid account types for inventory issues and receipts (prompt category: IN 2). Any number of account types can be valid for a particular category of prompts. For example, the default settings illustrated in Figure 4 show that three types of inventory are valid for Service Order Charges (CS 2). Minxware uses these types according to their hierarchy. For example, to allow all inventory types at these prompts, replace the three entries with type 115. Replacing type 115 with Current Assets (type 11 ) or Assets (type 1 ) relaxes the restriction still further. A blank entry for the type means that all account types are valid for that transaction. 62 Getting Started with Minxware

7 Setup This section is for first-time Minxware installations. If you are an established user, see the General Ledger Maintenance chapter in Volume 1 of Using Minxware for information on changing accounts or account structures. This setup chapter consists of two major steps: Set up the account structure and the accounts (below) Set up the account balances. Set Up General Ledger Accounts Figure 3 on the next page shows the steps to set up General Ledger accounts. Getting Started with Minxware 63

8 Figure 3 Set Up the Accounts Plan Your Account Structure Edit Account Types (GL,UT,7) Initialize Control File Variables (SU,UT,90) Edit Account Type Validation (GL,UT,8) Initialize GL Files (GL,UT,3) Set Up Chart of Accounts (GL,1) Set Up Retained Earnings Account Current & Prior Yr. (GL,2) Set Up Posting Table (GL,UT,1) Set Up Optional Segments (GL,2) Copy Account Structures (GL,UT,4) Set Up Divisions (GL,2) Optional Plan Your Account Structure Use the Account Structure Worksheet on page 95 to plan your account structure. Do this before you initialize the control file! 64 Getting Started with Minxware

9 Set the Control File Variables You must enter the values for the following control file variables when you select Initialize Control File (SU,UT,90). CFV Description 96 Number of account segments (2-5) * 97 Length of division account segment (1-6) * 98 Length of second account segment (0-10) * 99 Length of third account segment (0-10) * 100 Length of fourth account segment (0-10) * 101 Name of second account segment 102 Name of third account segment 103 Name of fourth account segment Once CFAs 96 through 100 are set, they can only be changed with Convert Posting Account Format (GL,UT,22). See the General Ledger Maintenance chapter of Using Minxware for details. Once these values are set you can initialize the General Ledger files, which uses the values you entered during the control file initialization. Initialize Account Structure Files Use Initialize General Ledger Files (GL,UT,3) to initialize the following GL files: Account Type File Account Type Validation File Account Type Validation Description & Error File Posting Table Template. The three type files were discussed in the Overview section. These files are created with a default configuration, which can be changed later. The posting table template is used later to enter default posting table accounts. 1. If Minxware is not shut down, select Minx Shut Down (SU,2). Getting Started with Minxware 65

10 2. Select Initialize General Ledger Files (GL,UT,3). The following screen is displayed: 3. Indicate yes when asked whether to initialize all four files. CAUTION: You MUST initialize all four GL files the first time you select this option (new installations or a new database). Once Minxware is completely set up, you can change individual settings. 4. Enter (A)crept to initialize the Posting, Account Type, and Account Type Validation files. 5. For the Account Type Validation/Description/Error File, indicate whether to display an (E)rror or (W)arning message when an invalid account type is entered. (E)rror If an account is entered with an incorrect account type (for the particular category) an ERROR message is displayed and the user CANNOT continue with the transaction. The correct type for any given situation is determined by the Account Type Validation File. You can modify the file using Account Type Validation Maintenance (GL,UT,8), which is discussed later in this section. (W)arning If an account is entered with an incorrect account type (for the particular category) a WARNING message is displayed, however the user CAN continue with the transaction. After you answer the prompt, the Account Type Validation/Description/Error File is initialized, and you are returned to the menu. 66 Getting Started with Minxware

11 Set Up Account Segments Account segments are defined by the Control File settings (during the initialization). However, you can assign or add new segment values, and add natural accounts or divisions. You will also use this option to add a retained earnings account for the current and prior year. CAUTION: A retained earnings account is required for EACH general ledger division, and must be entered before you add or change division information. 1. Select Account Segment Maintenance (GL,2). The following screen is displayed: This screen shows the default Division/Department/Natural Account structure. The first and last segment (Division and Natural Account) will always be the same and are mandatory. The middle segment is optional (or segments, depending on your structure) was defined when you initialized the control file. For documentation purposes, we show an account structure with three segments. NOTE: The account for Profit and Loss, is not added here, it is a system generated account that is created automatically while adding a new division. Getting Started with Minxware 67

12 Set Up Retained Earnings Natural Accounts You must set up a retained earnings account for both the current and prior fiscal year, for each division. 1. Select option 3, Natural Account. 2. Enter a natural account. Use from one to 12 alphanumeric characters, depending on the total length of the account segments defined in Control File Variables 97 through 100. If the natural account ID is not on file, you can add it now. 3. Enter a brief description of the natural account. 4. Enter the account type. (Retained Earnings accounts normally use type 31 ). The account type description and natural balance are completed for you. 5. Press [RETURN] to use the default natural balance, either debit or credit. The default corresponds to the account type just entered. NOTE: Entering a natural balance opposite to that of the default creates a contra-account. 6. Enter a currency code for the natural account or press [RETURN] to use the default. 7. (A)ccept, (E)dit or (R)eject the new natural account 68 Getting Started with Minxware

13 Set Up Optional Segments 1. Select the optional segments. (Example: department). 2. Enter the segment ID that is used for the Retained Earnings Accounts. NOTE: All segments that are used to create the Posting Account for the Retained Earnings accounts must be entered to create a division. 3. Enter a brief description of the segment. 4. (A)ccept, (E)dit or (R)eject the new information. Getting Started with Minxware 69

14 Set Up Divisions You can enter and maintain only one division, if CFV# 14 ( Single/Multiple ) is set to single. 1. Select Division from the Account Segment Maintenance selection screen. 2. Enter the division ID. 3. Enter a description for the division. 4. Enter the profit and loss account to use with this division. It must be a profit and loss account type ( 0 ), if the natural account is not on file it will be added automatically. NOTE: The posting account for Profit and Loss, is system generated, that is created automatically while adding a new division. 5. Enter the retained earnings accounts for the current and prior year (they can be the same or different). These must have the prompt category GL (A)ccept, (E)dit or (R)eject the new information. 7. Continue adding divisions until you ve entered all you need. 70 Getting Started with Minxware

15 Set Up Account Types Use Account Type Maintenance (GL,UT,7) if you must modify account type. See the Sample Account Type Structure-Income Statement on page 95 for an example. Figure 4 A Section of a Family Tree Parent of Child of 82 (Parent of 8231, 8232, 8233) 823 Children of 823 (Siblings to each other) Family Tree Relationships Figure 7 shows a segment of a typical account type family tree. 823 is the parent of 8231, 8232, and 8233 and is in turn a child of 82. The three children are siblings to each other. Getting Started with Minxware 71

16 Edit Account Types 1. Select Account Type Maintenance (GL,UT,7). You will start at the topmost level of the account type tree. The following screen is displayed NOTE: Yes or No in the Lower Levels column indicates whether there is an account type at a lower level. Edit the Top Level Account Type Use these steps to edit the top level account type ( Level 1 as shown in the screen above). 1. Select (E)dit to change the description or natural balance of the account type. 2. Enter the corresponding edit number. 3. Enter the account type description, or press [RETURN] to bypass this field. The description you enter is validated and must be unique for each account type. 4. Indicate (C)redit or (D)ebit to change the account type s natural balance. 5. (A)ccept, (E)dit or (R)eject the information. 72 Getting Started with Minxware

17 Add a Lower Level Account Type (an example) Suppose you must create a new inventory account type called Miscellaneous Inventory, with an account type of Select 1 (ASSETS) from the top level account type, to descend to a lower level. NOTE: If the there is no lower level, you can add one. The following screen is displayed, with the level (Level 2) highlighted: 2. Select 1 (Current Assets) to descend to the next lower level. 3. Select 5 (Inventory) to descend to the next lower level (Level 4 which is where we can add the account type for Miscellaneous Inventory). Getting Started with Minxware 73

18 The following screen is displayed, with the level (Level 4) highlighted: As this screen shows, we are now at level 4 which corresponds to the type 115. The listed account types are 1151, 1152, 1153, etc. 4. Enter 9 to complete the account type (corresponding to the account type 1159, which is what we want to add). If the account type does not exist, you can add it now. 5. Enter a unique description for the new account type. In our example, this is Miscellaneous Inventory. 6. Enter the account type s natural balance. In our example, this is a (D)ebit. 7. (A)ccept, (E)dit or (R)eject the information. 74 Getting Started with Minxware

19 Delete an Account Type Minxware imposes a few rules on the deletion of an account type. These are listed below using the following family tree example. You cannot prune a family tree in the middle. If an account type has children, grandchildren, or other descendents, you can t delete it until you remove those descendents. For example, you must delete 8231, 8232, and 8233 as well as all their respective children (if any) before you can delete 823. If you delete an account type that has no siblings, the accounts having that type assume the parent s account type. If 8231 were the only child of 823, the accounts having account type 8231 will have account type 823 if you delete If the deleted account type has only one sibling, any accounts having the deleted type will take the account type of the sibling. Assume that 8231 and 8232 alone are the children of 823. If you delete 8231 any accounts having that type take the account type Minxware displays a warning message, then does the switch automatically without requiring further input from you. If the deleted account type has more than one sibling, Minxware gives you a choice. If you delete 8231, the accounts that had that account type can be allocated to either 8232 or To Delete Account Types 1. Descend to the level at which the account type resides. 2. Select the account type to delete and then indicate (D)elete at the prompt. Minxware checks all GL accounts and natural accounts for usage of the account type. If the account type is not in use, enter DELETE to confirm the process. Getting Started with Minxware 75

20 Set Account Type Validation Select this option to add or edit account type validations. 1. Select Account Type Validation Maintenance (GL,UT,8). 2. Enter the prompt category of the validations to edit. The following screen is displayed (showing IN 1 ): You can edit an existing account type or add a new one. Edit Account Types 1. Select the line number of the account type to change. 2. Enter the new account type, or use the show screen key * to display all available account types, and select one. The account type must already exist. 3. (A)ccept the new entry. 76 Getting Started with Minxware

21 Add Account Types 1. Select (A)DD to add a new line to this prompt category. 2. Enter the new account type, or use the show screen key * to display all available account types, and select one. The account type must already exist. 3. (A)ccept the new entry. Edit Error Action 1. Select (E)rror to change the error processing when an invalid account entry is detected (Error Action). You have the following choices: (R)eject (W)ran displays an error message and refuses to allow the account entry displays a warning message, but allows the entry. 2. (A)ccept the new entry. Getting Started with Minxware 77

22 Set Up the Chart of Accounts You can set up your chart of accounts after the preliminary information (such as segment, division, type and type validation) has been entered. The chart of accounts affects how financial information is gathered for reporting and posting purposes. Use the Chart of Accounts Worksheet in the Appendix to note the accounts you must enter. NOTE: You can only edit the Posting Account Type with Chart of Accounts Maintenance (GL,1). To change other natural account information, use Account Segment Maintenance (GL,2). You will first enter the natural account information, and then indicate whether to make the account a posting account. 1. Select Chart of Accounts Maintenance (GL,1). The following screen is displayed: 2. Enter the division, optional segments, and the natural account. 3. Indicate whether to add this natural account, if it is not already on file. 4. Enter the natural account description. 5. Enter the natural account type. The natural account type must already exist. If the account type is found, the Account Type Description is displayed. 6. Indicate the natural balance (debit or credit), or press [RETURN] to use the default. 78 Getting Started with Minxware

23 7. Enter the currency code for this account. The currency PDD field is then displayed. 8. (A)ccept, (E)dit or (R)eject the information. 9. Indicate whether to make this natural account, a posting account. NOTE: If you do not activate the account, the information remains on file, however the account cannot be used for posting. You can activate it later, or remove it with Account Segment Maintenance (GL,2). 10. If yes, complete the following steps. a. Enter a posting account type or press [RETURN] to use the type from the natural account. The account type description defaults to that of the account type. b. Indicate whether to inactivate this account. This is normally used when an account is no longer being used OR if you want to restrict the accounts use until a certain date. If yes the account cannot be used for posting. c. If the currency code is not the system currency, enter the system value account for the currency. This account is required and is used to reflect the system currency value of your foreign currency assets and liabilities. 11. (A)ccept, (E)dit or (R)eject the posting account information. Delete an Account From the Chart of Accounts You must first deactivate the account before it can be deleted. Use the following steps. 1. Select Deactivate Accounts (GL,UT,13). After you enter the account information the account is checked to verify that it is not used. The account MUST be deactivated before it can be deleted. See the General Ledger Maintenance chapter in Volume 1 of Using Minxware for information about this selection. 2. Select Chart of Account Maintenance (GL,1), and enter the account number to delete. Getting Started with Minxware 79

24 3. Indicate that you want to (D)elete the account. The database is checked to determine whether the account can be deleted. It cannot be deleted if it: is a System Value Account is used in the Posting Table has a Balance in the GL Account Data File has an Entry in the GL Journal File. 4. If the account can be deleted, verify your intentions by typing delete. 80 Getting Started with Minxware

25 Set Up the Posting Table The Posting Table stores the default accounts used when posting debits and credits during day-to-day transactions. This simplifies data entry, since it saves you from having to look up and enter the correct posting account for each transaction. CAUTION: You must enter the correct posting accounts and account types to insure that transactions are posted correctly. Use the Chart of Accounts Worksheet and the Posting Table Worksheet in the Appendix to note your posting table accounts. Minxware verifies the account type of each account you enter. When entering an account for the Posting Table, the posting table descriptions created when the GL files were initialized (Initialize General Ledger Files (GL,UT,3)) are replaced by the account descriptions. Enter Posting Table 1. Select Posting Table Maintenance (GL,UT,1). The following screen is displayed: Getting Started with Minxware 81

26 2. Enter the number of the module whose default accounts you want to add. For documentation purposes we will use module 3- Inventory. The following screen is displayed: This screen shows the inventory default descriptions created when the GL files were initialized with Initialize General Ledger Files (GL,UT,3). 3. Enter the line number of the table entry to add. 4. If the system is set to use multiple divisions, enter the account division. 5. Enter the optional account segments. 6. Enter the natural account. NOTE: See the Posting Table Worksheet for the posting details of each account. The field Prompt was added to clarify if the account shown here is actually used for general ledger postings or if it is a default for another screen: If it is set to Yes when editing, it will advise you of where this provides a default. If it is set to No this is the account used for postings. 7. (A)ccept the entry. 8. Continue with all modules until you have completed the posting table. 82 Getting Started with Minxware

27 Copy Account Structures You can copy segment information from one division to another or the account information from one segment to another. You can edit the segment and account descriptions once the copy is complete. 1. Select Copy Account Structure (GL,UT,4). The following screen is displayed: 2. Indicate at which level to begin the copy (either division or segment). NOTE: You cannot copy division structures if CFV# 14 ( Single/Multiple Division Flag ) is set to use a single division. If the database is set to a single division, the division is displayed. Copy Optional Segment Structure (Example: Department) 1. Enter the from and to account segments, depending on how many segments you use. 2. Enter the starting and ending natural account IDs to copy. 3. (A)ccept the options to begin the copy. Getting Started with Minxware 83

28 Copy Division Structure 1. Enter the from and to division IDs. 2. If either division ID is not on file, indicate whether to add it now. If yes, enter the following: a. Enter the division description. b. Enter the division profit and loss clearing account. c. Enter the division retained earnings account for the current and prior fiscal years. d. (A)ccept the entries. 3. Enter the starting and ending account segments, depending on how many segments you use. 4. Enter the starting and ending natural account IDs to copy. 5. (A)ccept the entries to start the copy. 84 Getting Started with Minxware

29 Reports and Inquiries These reports and inquiries help you keep track of your setup. Account Segments Account ID Segment Report (GL,RP,4) Account Type File Account Type Report (GL,RP,9) Account Type Validation Prompt Category Report (GL,RP,10) Chart of Accounts Chart of Accounts Report (GL,RP,3) Control File Variables Control File Report (SU,RP,3) Control File Maintenance (SU,5) Posting Table Posting Table Report (GL,RP,5) Where To Go From Here Your account structure should now be set up. You can now create budgets and, if you use Multi-currency, your currencies. Getting Started with Minxware 85

30 Create Budgets and Initialize Account Balances After creating your account structure and all your accounts, you can set up budgets, prior year balances, currency codes, and initialize current year account balances. The process is illustrated below. Figure 5 Create Budgets and Initialize Account Balances Set Up Budgets (GL,9) Enter Prior Year Account Balances (GL,10) Set Up Currency Codes (GL,13) Enter Exchange Rates (GL,15) Initialize Current Year Account Balances (GL,UT,10) Optional Set Up Budgets You can create and maintain up to nine different budgets for each GL account. Once entered you can compare budgeted expenses with actuals. Use the General Ledger Budget Worksheet in the Appendix to enter budget information. 1. Select Budget Maintenance (GL,9). 2. Enter the last two digits of the year for which to enter budgets. 3. Enter the posting account to budget. NOTE: You cannot enter budget information for accounts with a foreign currency code. 86 Getting Started with Minxware

31 4. Enter the budget number (1-9) to add or edit. You can enter up to nine different budgets for each account. The following screen is displayed showing either 12 or 13 periods (depending on the setting for CFV# 13 Number of Fiscal Periods (12 or 13) ): The following screen is displayed 5. Enter the budget amounts for each period or press [RETURN] to default to the previous period s value (if applicable). 6. (A)ccept the budget. You can continue to enter budgets for this account, or enter another account to budget. NOTE: If you want to compare your actual year-to-date value with the total amount budgeted for the year enter a budget with the annual amount in Period 1 and the remaining as Getting Started with Minxware 87

32 Enter Prior Year Account Balances You can maintain up to 100 prior years of account balances. Use Financial Statements (GL,RP,1) to compare these prior year actuals to current actuals or budgets. 1. Select Prior Year Account Maintenance (GL,10). 2. If CFV# 14 ( Single/Multiple Division Flag ) is NOT set to single, enter the division ID. Otherwise, the single division is displayed. 3. Enter the optional segments. 4. Enter the year for which you are entering actuals. You cannot enter balances for the current fiscal year. 5. Enter the fiscal period for which to enter actuals. The posting account, description, natural account balance (debit or credit), account type and currency code are displayed for the first valid account in this division/department. 6. If no actual balances exist, you can add them. CAUTION: This program does NOT check for balanced entries. 7. Enter the amount in the accounts currency (i.e., dollars, pounds, yen, etc.). 8. (A)ccept or (R)eject the actual balance. 9. Press [RETURN] to go on to the next account or press [ESC] to restart. 88 Getting Started with Minxware

33 Enter Currency Codes and Exchange Rates If you are using multiple currencies, enter the codes for all the currencies in which you conduct business. Then enter the exchange rates between currencies. See the Multi-Currency chapter in Volume 1 of Using Minxware for instructions on entering currency codes. Initialize Current Year Account Balances If you are starting at the beginning of your fiscal year, you can enter beginning account balances for assets, liabilities, and capital. For each completed entry, a GL posting is created with a transaction date of the last period, of the last day, of the prior year. For example, if you use a calendar year and are initializing beginning balances for 1995, the transaction posting date would be 12/31/94. A summary record is also added for each account which becomes the beginning balance for the current fiscal year. When End Of Period Processing (GL,UT,6) is selected, the summary balances are used to calculate the first periods ending balance for the current fiscal year, depending on the type (Income Statement or Balance Sheet). CAUTION: Use care when entering balances. Once accepted, they cannot be changed. 1. Select Create Fiscal Calendar (SU,4) and Verify that the fiscal calendar is set correctly. 2. Select Control File Maintenance (SU,5) and verify that CFV# 19 ( Current Fiscal Year ) and CFV# 20 ( Last Fiscal Period Closed ) are set correctly. 3. Select Initialize Account Balances(GL,UT,10). 4. If CFV# 14 ( Single/Multiple Division Flag ) is NOT set to single, enter the division ID. Otherwise, the single division is displayed. 5. Enter the optional segments. The first natural account that matches the division and optional segments is displayed. NOTE: Liabilities and capital normally have a credit balance. 6. Enter the beginning account balance. You can override the natural balance of the account, by entering a negative beginning balance. For example, if the natural balance is a debit, you can create a credit posting by entering a negative beginning account balance. Getting Started with Minxware 89

34 7. Enter (A)ccept to post this balance to the general ledger. 8. Press [RETURN] to continue to the next account in the series, or [ESC] to exit the program. The GL transaction number is displayed when you exit. NOTE: Before closing the first fiscal period, verify the GL posting transactions by printing a Transaction Journal (GL,RP,11, 12, or 13), and then printing a Trial Balance (GL,RP,1). Initialize Balances in Middle of Fiscal Year If you are starting Minxware in the middle of a fiscal year with year-to-date figures and no detail for previous months, follow this procedure. 1. Select Create Fiscal Calendar (SU,4) and verify that the fiscal calendar is set correctly. 2. Select Control File Maintenance (SU,5) and verify that CFV# 19 ( Current Fiscal Year ) and CFV# 20 ( Last Fiscal Period Closed ) are set correctly. CFV# 20 should be set one periods before the opening period. For example, if your calendar year starts in period 10, the last closed period should be set to Select Journal Voucher Maintenance (GL,5). 4. Enter a voucher number or press return to use the default number (if CFV# 94 Next Automatic GL Voucher Number is used). You can enter a voucher numbers that are descriptive of the posting, for future reference. For example, you could enter the voucher number init0695 to indicate initial balances for June Enter the transaction date. CAUTION: Make sure the transaction date is in the correct fiscal period. 6. Enter a description for this voucher. 7. Enter the division, optional segments, and the natural account. 8. Enter balances for all accounts that are required. You can verify GL posting transactions by printing a General Ledger Journal (GL,RP,18), or printing a Trial Balance (GL,RP,1) for the fiscal period. 9. When you are satisfied with the entries, close the period with End of Period Processing (GL,UT,6). This will roll the balance to be your beginning balance. CAUTION: Do NOT close any accounting period until you have thoroughly reviewed the General Ledger Close chapter in Volume 1 of Using Minxware. 90 Getting Started with Minxware

35 Reports and Inquiries The following reports and inquiries help you track what you have entered thus far. Budgets and Actuals Account Balance Inquiry (GL,3) Financial Statements (GL,RP,1) Comparative Spread (GL,RP,2) For more information on GL,RP,1, see Financial Report Generator in Volume 1 of Using Minxware. Account Balances Account Balance Inquiry (GL,3) Transaction Inquiry (GL,6) Financial Statements (GL,RP,1) Transaction Journal (GL,RP,11,12,13) Where To Go From Here If you are initializing Minxware for the first time, continue with the Inventory Control chapter, where you will enter part information. Getting Started with Minxware 91

36 Appendix The following table shows the prompt categories associated with programs. It also describes the prompt (if available) or action used with the prompt category. Table 2: Prompt Category/Program Cross Reference Program Action/Prompt Prompt Category Accounts Payable AP,1 Use Default AP Trade Account? AP 3 Use Default AP Prepaid Expense Account? AP 2 AP,4 Voucher Distribution AP 6 AP,6 Voucher Distribution AP 6 AP,7 Use Default AP Cash Account? AP 1 Use Default AP Discounts Account? AP 4 Use Default AR Cash Receipts Account? AR 1 Use Default AR Deposits Received Account? AR 3 AP,TR,4 Voucher Distribution AP 6 AP,TR,11 Voucher Write-off AP 7 AP,TR,15 Voucher Distribution AP 6 Accounts Receivable AR,1 Use Default AR Trade Account? AR 2 Use Default AR Discounts Taken Account? AR 7 AR,3 AR Trade AR 2 Prompt Payment Discounts AR 7 AR,5 Miscellaneous Charges Account Distribution AR 10 Use Default Posting Table Freight Account? AR 8 AR,8 Sales Tax Collected AR 4 AR,9 Special Fees AR 9 AR,10 Miscellaneous Charges Account Distribution AR 10 Use Default Posting Table Freight Account? AR 8 AR,TR,1 Use Default AR Posting Table Invoice Write-off AR 13 Account? Use Default AR Posting Table Miscellaneous Income AR 12 Account? Use Default Posting Table Freight Account? AR 8 AR,TR,3 Non Stock Sales Order Returns AR 14 Returning inventory to new location IN 1 Miscellaneous Charges Account Distribution AR 10 Use Default Posting Table Freight Account? AR 8 AR,TR,4 Miscellaneous Charges Account Distribution AR 10 Use Default Posting Table Freight Account? AR 8 Customer Service CS,13 Work Center Labor/Overhead SF 3 CS,TR,2 Returning inventory to new location IN 1 CS,TR,3 Miscellaneous Charges Account Distribution AR 10 Use Default Posting Table Freight Account? AR 8 CS,TR,4 Miscellaneous Charges Account Distribution AR 10 Use Default Posting Table Freight Account? AR 8 92 Getting Started with Minxware

37 General Ledger GL,2 Division Retained Earnings GL 3 GL,5 Journal Voucher Distribution GL 2 GL,7 Journal Voucher Distribution GL 2 GL,12 Journal Voucher Distribution GL 2 GL,13 Foreign Clearing Account GL XX Currency Profit & Loss Account GL 1 GL,UT,1 AP Cash Account AP 1 AP Deposits Account AP 2 AP Trade Account AP 3 AP Discounts Taken Account AP 4 Voucher Variance Account AP 5 AR Cash Received Account AR 1 AR Trade Account AR 2 AR Deposits Received Account AR 3 AR Tax Collected Account AR 4 AR Unapplied Credit Memos Account AR 5 AR Credit Memos Account AR 6 AR Discounts Allowed and Unallowed Accounts AR 7 AR Freight Expense Account AR 8 AR Finance Charges Account AR 11 AR Miscellaneous Income Account AR 12 AR Invoice Write-off Account AR 13 Customer Owned Material Account CS 1 Material/Labor Charges Account CS 2 General Inventory Account IN 1 Miscellaneous Issues Account IN 2 Miscellaneous Receipts Account IN 2 Customer Service Miscellaneous Issues Account IN 2 Inventory Cost Adjustments Account IN 3 Standard Cost Adjustments Account IN 3 Inventory Scrap Account IN 4 Sales Account OM 1 Cost of Goods Sold Account OM 2 Sales Order Staging Account OM 3 Uninvoiced Shipments Account OM 4 Sales Price Variance Discount Account OM 5 Pricing Table Discount Account OM 5 Sales Returns and Allowances Account OM 7 Restocking/Handling Charge Account OM 8 PO Receipts/Inspection Account PO 1 Uninvoiced PO Receipts Account PO 2 Purchase Price Variance Account PO 3 PO Receipt Material Overhead Account PO 4 PO Receipt Outside Processing Account PO 4 WIP Material/Labor/Overhead/Outside Processing SF 1 Accounts WIP Scrap Account SF 2 Work Center Labor & Overhead Accounts SF 3 WIP Residual Account SF 4 Getting Started with Minxware 93

38 WIP Usage Variance Account SF 4 WIP Configuration Variance Account SF 4 WIP Component Scrap Variance Account SF 4 WIP Assembly Scrap Material Variance Account SF 4 WIP Assembly Scrap Labor Variance Account SF 4 WIP Methods Change Variance Account SF 4 WIP Lot Size Variance Account SF 4 WIP Efficiency Variance Account SF 4 WIP Rate Variance Account SF 4 GL,UT,5 Journal Voucher Distribution GL 2 GL,UT,9 Journal Voucher Distribution GL 2 Inventory Control IN,1 Use Default Part Master Account? IN 1 IN,3 Use Default Part Master Account? IN 1 IN,5 Use Default Part Master Account? IN 1 IN,TR,1 Use Default Part Master Account? IN 1 Credit Default Inventory Account-Misc Receipts? IN 2 Credit Default Inventory Account-Misc Scrap? IN 4 Order Management OM,TR,3 Use Posting Table Misc Inventory Issues Account? OM 6 OM,TR,9 Use Posting Table Misc Inventory Issues Account? OM 6 Use Default Part Master Account? IN 1 OM,TR,12 Use Posting Table Misc Inventory Issues Account? OM 6 OM,UT,4 Cost of Goods Sold Account OM 2 Sales Account OM 1 Pricing Table Discount Account OM 5 Sales Returns and Allowances Account OM 7 Project Accounting PA,1 Stock Account PA 1 Variance Account PA 2 Non-stock Account PA 3 Cost of Goods Sold Account PA 4 Purchasing PO,1 Use Default WIP Outside Processing Account? SF 1 Do You Wish to Expense this Part? PO 5 PO,TR,1 Use Default Part Master Account? IN 1 Purchase Requisitions PR,1 Use Default WIP Outside Processing Account? SF 1 Do You Wish to Expense this Part? PO 5 PR,TR,1 Use Default Part Master Account? IN 1 Shop Floor SF,3 Work Center Labor/Overhead SF 3 SF,TR,2 Use Default Part Master Account? IN 1 SF,TR,3 Use Default WIP Scrap Account? SF 2 SF,TR,5 Use Default Part Master Account? IN 1 SF,TR,7 Use Default Part Master Account? IN 1 SF,TR,8 Enter Employee Indirect Hours SF 3 SF,TR,15 Use Default Part Master Account? IN 1 SF,TR,16 Use Posting Table Misc Inventory Issues Account? OM 6 94 Getting Started with Minxware

39 Account Structure Worksheet 5 Segments 1-6 Characters 0-10 Characters 0-10 Characters 0-10 Characters 1-12 Characters Division Natural Account All account structures use up to 20 digits, including dashes. RESTRICTIONS: Segment 1 is mandatory and is the Division. Segment 5 is mandatory and is the Natural Account. Segments are optional and the name is user defined. Sample Account Type Structure-Income Statement LEVEL ONE LEVEL TWO LEVEL THREE LEVEL FOUR REVENUE Sales Sales Discounts Sales Returns and Allowances COST OF GOODS Inventory Adjustments Inventory Variance Other Cost of Goods Sold Getting Started with Minxware 95

40 Sample Account Type Structure-Balance Sheet LEVEL ONE LEVEL TWO LEVEL THREE LEVEL FOUR ASSETS CURRENT ASSETS Cash Stocks and Bonds Notes Receivable Accounts Receivable INVENTORY Fixed Assets Other Assets Prepaid Expense Other Current Assets LIABILITIES CURRENT LIABILITIES Long Term Labilities Notes Payable Accounts Payable Accrued Expenses Unearned Revenue Other Current Liabilities OTHER LIABILITIES Inventory Receipts Other Liabilities CAPITAL Retained Earnings Other Capital 96 Getting Started with Minxware

41 General Ledger Budget Worksheet Posting Account: Posting Account: Posting Account: Budget #: Budget #: Budget #: Fiscal Year: Fiscal Year: Fiscal Year: Period 1: Period 1: Period 1: Period 2: Period 2: Period 2: Period 3: Period 3: Period 3: Period 4: Period 4: Period 4: Period 5: Period 5: Period 5: Period 6: Period 6: Period 6: Period 7: Period 7: Period 7: Period 8: Period 8: Period 8: Period 9: Period 9: Period 9: Period 10 Period 10: Period 10: Period 11: Period 11: Period 11: Period 12: Period 12: Period 12: Period 13:* Period 13:* Period:13* Copy this worksheet as often as necessary to accommodate all budgeted accounts. * If Control File Variable 13 is set to 13 Periods. Getting Started with Minxware 97

42 Prior Year Account Maintenance Worksheet Div. ID: Fiscal Year: Dept. ID: Fiscal Per: Div. ID: Fiscal Year: Dept. ID: Fiscal Per: Posting Account Account Natural Balance Posting Account Account Natural Balance 98 Getting Started with Minxware

43 Current Year Account Balance Worksheet Account Account Natural Balance Account Account Natural Balance Getting Started with Minxware 99

44 Chart Of Accounts Worksheet Division: Department: Natural Account Number Account Type Account Description Currency Code Retained Earnings Profit &Loss 100 Getting Started with Minxware

45 Posting Table Worksheet Use the blanks to note the account you assign to each posting table entry. Accounts Payable 1) - Accounts Payable Cash Prompt Category: AP 1 Default Entry: Bank Code Maintenance (AP,7) Default Type: 111 Credit - Vendor Deposit Amount Credit - Voucher s Total Amount Check Generation (AP,TR,6/7) Check Generation (AP,TR,6/7) 2) - AP Discounts Taken Prompt Category: AP 4 Default Entry: Bank Code Maintenance (AP,7) Default Type: 212, 8 Credit - Voucher Discount Amount Credit - Voucher Discount Amount Check Generation (AP,TR,6/7) Voucher Write Off (AP,TR,11) 3) - AP Trade Prompt Category: AP 3 Default Entry: Vendor Maintenance (AP,1) Default Type: 212 Credit - Voucher Amount Voucher Maintenance (AP,4) Debit - Unapplied Debit Memo Amount Debit - Applied Debit Memo Amount Credit - Unapplied Credit Memo Amount Credit - Applied Credit Memo Amount Debit Memo Maintenance (AP,TR,4) Debit Memo Maintenance (AP,TR,4) Credit Memo Maintenance (AP,TR,4) Credit Memo Maintenance (AP,TR,4) Getting Started with Minxware 101

46 Debit - Voucher Amount Credit - Applied Amount Void a Voucher (AP,TR,5) Void a Voucher (AP,TR,5) Debit - Voucher Amount Check Generation (AP,TR,6/7) Credit - Deposit Amount Debit - Applied Amount Deposit Entry (AP,TR,9) Apply Deposits (AP,TR,13) Debit - Voucher Amount Debit - Voucher Amount Write Off a Voucher (AP,TR,11) Debit Against a PO Return (AP,TR,15) Credit - Cash Refund Amount Enter Customer s Deposits (AR,TR,2) 4) - AP Deposits Prompt Category: AP 2 Default Entry: Vendor Maintenance (AP,1) Default Type: 116, 212 Debit - Deposit Amount Debit - Voucher Line Itm Applied Deposit Amt Credit - Deposit Amount Deposit Entry (AP,TR,9) Void A Voucher (AP,TR,5) Apply Deposits (AP,TR,13) 5) - Voucher Variance Prompt Category: AP 5 Default Entry: None Default Type: 52 GL Posting The voucher variance is the difference between the Actual Invoice cost and the Purchase Order Quoted Cost: Voucher Variance = Actual Invoice Cost - PO Quoted Cost Purchase Order cannot be type S (subcontracted) and Alternate PO account entry cannot be an expense type account. Debit - POSITIVE Voucher Variance Amount Credit - NEGATIVE Voucher Variance Amount Voucher Maintenance (AP,4) Debit - POSITIVE Voucher Variance Amount Credit - NEGATIVE Voucher Variance Amount Debit Against A PO Return (AP,TR,15) 102 Getting Started with Minxware

47 Accounts Receivable 1) - AR Cash Received Prompt Category: AR 1 Default Entry: Bank Code Maintenance (AP,7) Default Type: 111 Debit - Payment Amount Debit - Check Amount Cash Posting (AR,TR,1) Enter Customer s Deposit (AR,TR,2) 2) - AR Credit Memos Prompt Category: AR 6 Default Entry: None Default Type: 43 Debit - Applied Credit Amount Debit - Unapplied Credit Amount Debit - Credit Memo Amount Credit Memo Amount Cash Posting (AR,TR,1) Product Returns After Invoicing & Create CR Memo (AR,TR,3) Debit/Credit Memo Maintenance (AR,TR,4) Void A Debit/Credit Memo (AR,TR,8) 3) - AR Deposits Received Prompt Category: AR 3 Default Entry: Bank Code Maintenance (AP,7) Default Type: 214 Debit - Applied Deposit Amount Credit - Deposit Amount Credit - Deposit Amount Debit - Refund Amount Cash Posting (AR,TR,1) Cash Posting (AR,TR,1) Enter/Refund Customer s Deposits (AR,TR,2) Enter/Refund Customer s Deps. (AR,TR,2) Getting Started with Minxware 103

48 4) - AR Discounts Allowed Prompt Category: AR 7 Default Entry: Bill-To Customer Maintenance Default Type: 42 (AR,1) Debit - Line Item Discount Amount Debit - Applied Deposit Discount Amount Debit - Discount Amount Invoice Maintenance (AR,10) Cash Posting (AR,TR,1) Cash Posting (AR,TR,1) 5) - AR Finance Charges Prompt Category: AR 11 Default Entry: None Default Types: 6, 8 None (Reserved for future use) 6) - AR Freight Expenses Prompt Category: AR 8 Default Entry: None Default Type: 6 Credit - Freight Amount (charge) Debit - Freight Amount (charge) Invoice Maintenance (AR,10) Product Returns After Invoicing & Create CR Memo (AR,TR,3) 7) - AR Miscellaneous Income Prompt Category: AR 12 Default Entry: None Default Types: 2, 4, 5, 6, 7, 8, 9 None (Reserved for future use) 104 Getting Started with Minxware

49 8) - AR Tax Collected Prompt Category: AR 4 Default Entry: Tax Code Maintenance (AR,8) Default Type: 215 Credit - Tax Amounts (Federal/State/Local) Debit - Tax Amounts (Federal/State/Local) Invoice Maintenance (AR,10) Product Returns After Invoicing & Create CR Memo (AR,TR,3) 9) - AR Trade Prompt Category: AR 2 Default Entries: Bill-To Cust. Maintenance (AR,1) Default Type: 114 Ship-To Customer Maintenance (AR,3) Debit - Unit Line Item Total Debit - Tax Amounts (Federal/State/Local) Debit - Special/Misc/Freight Charges Credit - Cash Receipt Amount Credit - Applied Deposit Amount Credit - Applied Credit Memo Amount Credit - Applied Credit Memo Amount Debit - Credit Memo Amount Debit - Recurring Invoice Amount Debit - Tax Amounts (Federal/State/Local) Credit - Applied Credit Memo Amount Invoice Maintenance (AR,10) Invoice Maintenance (AR,10) Invoice Maintenance (AR,10) Cash Posting (AR,TR,1) Cash Posting (AR,TR,1) Cash Posting (AR,TR,1) Debit/Credit Memo Maintenance (AR,TR,4) Void a Debit/Credit Memo (AR,TR,8) Post Recurring Invoices (AR,TR,10) Post Recurring Invoices (AR,TR,10) Product Returns After Invoicing (OM,TR,10) 10) - AR Write Off Prompt Category: AR 13 Default Entry: None Default Types: 114, 6, 7 Debit - Invoice Write-Off Amount Cash Posting (AR,TR,1) Getting Started with Minxware 105

50 11) - AR Unapplied Credit Memos Prompt Category: AR 5 Default Entry: None Default Type: 215 Credit - Unapplied Credit Memo Amount Debit - Applied Credit Memo Amount Credit - Unapplied Credit Memo Amount Debit - Unapplied Credit Memo Amount Credit - Unapplied Credit Memo Amount Debit/Credit Memo Maintenance (AR,TR,4) Cash Posting (AR,TR,1) Product Returns After Invoicing (AR,TR,3) Void A Debit/Credit Memo (AR,TR,8) Product Returns After Invoicing (OM,TR,10) 12) - AR Deferred Revenue Prompt Category: AR 15 Default Entry: None Default Type: 214 Credit Progress Bill Invoice Amount Debit Recognized Revenue Invoice Maintenance (AR,10) Invoice Maintenance (AR,10) 13) - AR Uninvoiced Deferred Revenue Prompt Category: AR 16 Default Entry: None Default Type: 216 Debit Uninvoiced Portion of Recognized Revenue Invoice Maintenance (AR,10) 106 Getting Started with Minxware

51 14) - Deferred Tax Account Prompt Category: AR 17 Default Entry: None Default Type: 118 Credit Progress Bill Tax Amount Debit Tax of Recognized Revenue Invoice Maintenance (AR,10) Invoice Maintenance (AR,10) 15) - AR Uninvoiced Deferred Revenue Prompt Category: AR 18 Default Entry: None Default Type: 119 Debit Uninvoiced Portion of Tax for Recognized Revenue Invoice Maintenance (AR,10) Getting Started with Minxware 107

52 Inventory Control 1) - General Inventory Prompt Category: IN 1 Default Entries: Part Maintenance (IN,1) Default Types: 115, 52, 53, 6, 7 Part Location Maintenance (IN,3) Credit - NEGATIVE Std Cost vs Proposed Cost Debit - POSITIVE Std Cost vs Proposed Cost Cost Roll-Over (CA,UT,3) Credit - Current Qty * Standard Cost Location Transfer - OLD ACCOUNT Debit - Current Qty * Standard Cost Location Transfer - NEW ACCOUNT Location Transfer (IN,5) Debit - Std Cost Amount (Receipt) Credit - Std Cost Amount (Scrap) Credit - Std Cost Amount (Issue) Debit - POSITIVE Cycle Count Variance Credit - NEGATIVE Cycle Count Variance Stock Issues and Receipts (IN,TR,1) Cycle Count Transaction (IN,TR,2) Credit - Std Cost Amount (Issue) Relieve Inventory For Shipment (OM,TR,3) Debit - Cost Amount (Receipt) Debit - POS Receipt Variance (Std vs Quoted) Credit - NEG Receipt Variance (Std vs Quoted) Receipts and Transfers (PO,TR,1) Credit - Cost Amount (Return) Debit - POS Cost Amount (Pos Inspect. Adj.) Debit - POS Return Variance (Std vs Quoted) Returns and Inspection Adjustments (PO,TR,2) Credit - Standard Cost Amount (Issue) Kit A Work Order (SF,TR,1) Debit - Standard Cost Amount (Receipt) De-Kit Work Order (SF,TR,2) Credit - Standard Cost Amount (Issue) Debit - Standard Cost Amount (Receipt) Issue Parts to a Work Order (SF,TR,4) Return Parts To Stock From A WO (SF,TR,5) Debit - Standard Cost Amount (Receipt) Complete a Work Order To Stock (SF,TR,7) 108 Getting Started with Minxware