Compiere Training

May-04 Accounting 1

Compiere Training

Accounting, TaxPerformance Analysis

May-04 Accounting 2

Agenda

Performance Analysis Information Dimensions Calendar & Periods Accounting Schema Charge Tax Accounting Details

Show AccountingTools > Preference

Role Security

May-04 Accounting 3

Performance Analysis

AccountingEntry

Transaction

AccountingEngine

AccountingDefaults

Document

ReportViewer

Printer

CustomizeReports

drill across drill down

File:

XML, PDF,Word, Excel

Multi-DimensionalAccounting

Cube

BusinessView

SQL Tools

ManualJournal

RevaluationRestatement

Allocation

ReportingView

May-04 Accounting 4

Terminology

01-1200-2000-Joe AccountCombination

OptionalElements

NaturalAccount

Element

MandatoryElements

Org

HQ-Payables-Flower-JoeBrown Inc Description

Value|

Name

May-04 Accounting 5

Information Dimensions Organization

Owning (balance sheet) Transacting (executing org or service center)

Natural Account Product Business Partner Project Marketing Campaign Location (Warehouse, Business Partner)

From - To Activity (Activity Based Costing) User Defined (2)

Accounting Schema Elements(Segments)

May-04 Accounting 6

Principles Accounting entry at the lowest level

(Accounting Fact) Any Accumulation Trees for Summary & Navigation

Element Values derived from Transaction Directly (entered) Derived

Differentiate Document from Accounting Consequence Multiple Accounting Schema

May-04 Accounting 7

Dimensions Tree Conversion

MyCompany

DirectSales

WebSales

CityStore

CountryStore

HQ Operations

Direct Sales HQ

City Store

Country Store

Web Sales

*

Direct Sales

Stores

May-04 Accounting 8

Tree Characteristics You can post only to Leaf Level You can report on Summary and Leaf

Level You can change Structure any time “HQ Operations”

Extra Leaf / Summary required E.g. Differentiate “Direct Sales” level transactions

from individual Stores Different Modeling Options

Dependent what you want to report on

May-04 Accounting 9

Dimension Tree Alternative

MyCompany

DirectSales

WebSales

CityStore

CountryStore

HQ Operations

Direct Sales HQ

City Store

Country Store

Web Sales

*

Direct Sales

May-04 Accounting 10

Calendar & Period Two Dates

Document Date Accounting Date

Calendar & Period only for control & reporting purposes No End Period processes Period can be automatically opened

You cannot post in closed periods – Change accounting date (or re-open)

Controlling Calendar defined on Client Level


Account Element

Type Natural Account User defined

One (or more) Trees for Reporting Values

Account Type & Sign Posting Type (Actual – Budget – Stat)


Accounting Schema

From “traditional CCC” to Chart-Of-Account (Natural Account) Currency (Not Calendar) Costing Method GAAP* Selection of Elements


Multiple Accounting Schema

Parallel Accounting of Documents No need to derive one from the other

Differentiate between Legal/Tax Accounting

Multiple Countries Management Accounting

Currency Translation not correct

Document

AccountingConsequenceAccounting

ConsequenceAccountingConsequence


Account Schema Elements Information Dimensions Balanced

Postings to this Element must be balanced

E.g. Organization Mandatory

With every transaction you have to define E.g. Organization, Natural Account

Default Value


Accounting Schema Changes Change Structure any time

Add/Change/Delete Elements Change Values any time

Overwrites old ones! Change Hierarchy any time

Reporting Hierarchy of Elements Org, Account, BPartner, Product, Project, etc.

Merge Element Entries any time Organization, BPartner (User), Product


Accounting Defaults Default Hierarchy

Accounting Schema BP Group, Product Category, ..

Business Partner, Product, ..

Account Combination Combination of Element Values Org – Natural Account – ...

Posting adds Document Context Values to Account Defaults E.g. Invoice automatically adds Business Partner


Account Combination

Org ProductBPartnerProjectAccountDefault Account

Org ProductBPartnerProjectAccountPosted Account(dynamically created)

02 __Building1600

01 FlowersJoeBuilding1600

Document


Posting Posted in Background or Explicit

When document is processed Reset Accounting

For specific/all Document Table Allows to correct wrong default accounts

Resubmit Posting After correcting cause for Posting error

E.g. Open Period


Account Info (View)

View Accounting For Document For Enabled Account Element Value

Optional Account Date Range

Optional Sorting Grouping


GL Category

Traditional GL Reporting Sources

Derived from Document Type Manually Entered


Document Sequence

Unique numbering of documents Gap-less

Optional Prefix/Suffix Assigned via Document Type


Charge The Link (“Alias”) between

(Multiple) Chart-of-Accounts Natural Account (Account Combination)

Attributes Option to distinguish Dr/Cr Posting Tax Category & Tax Inclusive Handling*

Creation Manually Generate Charges from Natural Account


Tax Overview

Tax Rate

Product

TaxCategory

CommodityCode

OrgShip FromBill From

BPartnerShip ToBill To


Tax

Tax Category Link to Product (Commodity Code)

API* for Tax Vendors Commodity – Invoice/Ship – From/To

Maintain Tax Rate Invoice From/To For simple tax situations


Multiple Tax Rates More than one tax rate on the same net

amount Line 100.00 Tax1 (5%) 5.00 Tax2 (4%) 4.00

If “Tax on Tax” calculate rate as if from net Enter % for Summary Level

Summary (9%) 9.00 Summary Level used while entering data Correct Taxes calculated when

Processed


Tax Issues

Tax Calculation On Header

Total Amount per Tax * Rate

Tax Inclusive The Amount includes all taxes Define in

Price List Charge*


Budgeting

Define Budget & Status Enter Budget

Journal Entry Post to Budget

Report


Planned Functionality Automatic GL Distribution*

You define Source – e.g. 01-1200 Multiple Targets – e.g. 50% - 01-2500

Recursive Use Currency Revaluation* Allocations* Alerts* Cockpit*


Accounting Details

Optional Material


Details: No Sub-Ledger Traditional Systems

Sub-Ledger Documents create GL Journals GL Journals are posted

Compiere All Documents are directly posted

GL Category defined in Document Type Simulating a Sub-Ledger

Create “Sub Ledger” Reports based on GL Category Creating Sub-Ledgers (Customization)

Create Accounting Trx Exports for other Client With the desired level of Summarization


Detail: Balancing Defined per Accounting Schema Source Amount Balancing

If Suspense Balancing enabled Post to Suspense Acct – Otherwise fail

Segment / Element Balancing Implemented for Organization (Due To/From)

Accounting Amount Balancing With Currency Balancing

Difference posted to Currency Balancing Account Without Currency Balancing

Difference added to biggest Balance Sheet Account Amount


Details: Reverse (Correction) Differentiate between

Reversals (Accruals) Correction “Undo”

Motivation: Correct Account Debit / Credit Sum E.g. Differentiate between Invoice Correction and Voiding

Invoice Example - Original Trx

Account 1 Dr 50 Account 2 Cr 50

Reverse Account 1 Cr 50 Account 2 Dr 50

Reverse Correction Account 1 Dr -50 Account 2 Cr -50

ReverseTrx 50

Reverse 5050 50

Reverse CorrectionTrx 50Reverse -50

0 0


Details: Invoice Allocation Payment

In Transfer (Bank) Dr Unallocated Receipts Cr

Per Allocation Transaction Unallocated Receipts Dr Accounts Receivables Cr Write-Off Cr Payment Discount Cr

View Allocations in “Reverse Allocation”


Details: Realized Gain & Loss Created when posting Invoice Allocation

Difference between converted (Partial) AR/AP Amount Allocation Amount

E.g. Accounts Receivables Dr 22Realized Gain Cr 22

Conversion Rate on Allocation Trx Date Is Payment Date when 1:1 with Payment Manual Allocation Date defaults to Login Date


Details: Tax Correction Enabled in Accounting Schema

If you have to pay tax only on the actually received (not invoiced) Amount – VAT

Example Lines $100 + Tax1 $15 + Tax2 $5 = Total $120 Payment of $115 ($5 Payment Discount or Write-Off) Tax1 Correction = $0.63 (15/120*5) Tax2 Correction = $0.21 (5/120*5) Journal Entries (e.g. Sales Trx)

Discount Cr 0.84 Tax1 Dr 0.63 Tax2 Dr 0.21


Details: Document Action

Drafted

ClosedVoided

CompletedApproved

NotApproved

Waiting

InProgress

Prepare

Complete

Close Reopen

Reversed

Reverse

Void

Complete

Re-Activate

Approve

Invalid

Prepare

Void

Prepare

RejectReject


Hands-on Check / Post

Document Enter manual

Journal