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

F200 Financials: Intermediate Training Guide

Acumatica ERP 5.0

Last Revision: 2/23/2015

| Contents | 2

Contents

Copyright......................................................................................................4

Introduction................................................................................................. 5

How to Use This Course...............................................................................6

Part 1: Configuring Branches and Subaccounts............................................9Company Story: Related Companies.................................................................................10Configuring Companies................................................................................................... 13Lesson 1: Planning and Enabling Features.........................................................................15Lesson 2: Planning IDs and Configuring Segmented Keys................................................... 16Lesson 3: Subaccounts................................................................................................... 19

Making Corrections to the Configuration of Accounts and Subaccounts......................... 22Lesson 4: Branches........................................................................................................ 23Lesson 5: General Ledger............................................................................................... 25Lesson 6: Balancing Entries for Intercompany Transactions................................................. 28Lesson 7: Cash Accounts................................................................................................ 32Review Questions........................................................................................................... 34

Part 2: Transactions Across Companies..................................................... 35Company Story: Intercompany Transactions...................................................................... 36Lesson 8: Accounts Payable Documents............................................................................37Lesson 9: Accounts Receivable Documents........................................................................43Lesson 10: Funds Transfers.............................................................................................45Lesson 11: Consolidated Reports..................................................................................... 48

Notes About Analytical Reports (ARM)..................................................................... 53Review Questions........................................................................................................... 61

Part 3: Income and Expense Classification by Subaccount.........................62Company Story: Subaccounts in Documents......................................................................63Lesson 12: Subaccounts in General Ledger Transactions..................................................... 64Lesson 13: Combined Subaccounts in Documents.............................................................. 66Review Questions........................................................................................................... 69

Part 4: General Ledger...............................................................................70Company Story: Budgets and Allocations.......................................................................... 71Lesson 14: Budgets........................................................................................................72Lesson 15: Allocations.................................................................................................... 85Review Questions........................................................................................................... 92

Part 5: Cash Management..........................................................................93Company Story: Cash Management..................................................................................94Lesson 16: Bank Deposits...............................................................................................95Lesson 17: Unrecognized Payments and Payment Reclassification....................................... 104Lesson 18: Bank Reconciliation...................................................................................... 108

Support for OFX and Related Formats....................................................................120Comparison of Transactions by Factors and Match Relevance Calculation.....................122

| Contents | 3

Review Questions......................................................................................................... 127

Part 6: Accounts Payable......................................................................... 128Company Story: Accounts Payable..................................................................................129Lesson 19: Payments to Vendors by Using a Corporate Credit Card.................................... 130Lesson 20: Vendor Prices.............................................................................................. 137Lesson 21: 1099 Vendors..............................................................................................148

Check Yourself.................................................................................................... 158Review Questions......................................................................................................... 160

Part 7: Accounts Receivable.....................................................................161Company Story: Accounts Receivable..............................................................................162Lesson 22: Auto-Application of Payments........................................................................ 163Lesson 23: Customer Prices.......................................................................................... 168Lesson 24: Customer Discounts..................................................................................... 177Lesson 25: Customer Payments by Credit Card................................................................188

Configuring the Website for HTTPS........................................................................198Review Questions......................................................................................................... 199

Part 8: Data Migration............................................................................. 200Company Story: Data Migration..................................................................................... 201Preparing Import Scenarios........................................................................................... 202

Constants and Formulas in Import Scenarios.......................................................... 208Cross-Check Recommendations for Data Verification................................................211

Lesson 26: Import of Trial Balances............................................................................... 212Lesson 27: Import of General Ledger Transactions........................................................... 219Lesson 28: Import of Vendors....................................................................................... 222Lesson 29: Import of Open Accounts Payable Documents..................................................224Lesson 30: Import of Customers....................................................................................228Lesson 31: Import of Open Accounts Receivable Documents..............................................230Lesson 32: Import of Outstanding Checks and Deposits in Transit...................................... 234Review Questions......................................................................................................... 239

Appendix: Final Configuration Reference................................................. 240

Appendix: Demo Data Reference..............................................................243

Appendix: Closing Procedure Checklist.................................................... 245

| Copyright | 4

Copyright

© 2015 Acumatica, Inc.ALL RIGHTS RESERVED.

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Trademarks

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Software Version - 5.0

| Introduction | 5

Introduction

This course introduces the advanced functionality of the Acumatica ERP financial modules (GeneralLedger, Cash Management, Accounts Payable, and Accounts Receivable). In this course, you will setup the financial modules for two related companies (legal entities) based on their organizationalstructure and the reporting and transaction processing requirements. You will set up automaticallybalanced intercompany transactions for the companies. Then you will implement the advanced businessprocesses for the companies, including budgeting, reconciling cash accounts, tracking payments to1099 vendors, and managing customer prices and discounts.

The course also describes how you can import data into the system in order to migrate the companiesto Acumatica ERP from other systems. The data import includes the import of trial balances or generalledger 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 ofAcumatica ERP, and data migration. After you complete the course, you will have an understandingof how you can set up Acumatica ERP for financial accounting in related companies, how you canimplement advanced processes in the system, and how you can migrate financial data to AcumaticaERP.

| 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 ERPtenant 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 datapreloaded.

• 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 anAcumatica ERP Instance With the Needed Data.

Follow these steps to complete the course:

1. Prepare an Acumatica ERP instance version 5.00.2768 or greater 5.00.XXXX version.

You can add three companies for the course during the deployment of the instance for thetraining, or you can create one out-of-the-box company at first and then add the othercompanies to the existing instance later as described in How to Create a Company on anAcumatica ERP Instance With the Needed Data.

2. In the out-of-the-box company, complete the lessons of the Part 1: Configuring Branches andSubaccounts 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 theadvanced business processes in Acumatica ERP. After completing each part, take thecorresponding test at Acumatica University (Certification Tests 2–7) .

5. In the F200TBImported company, complete the lessons of the Part 8: Data Migration to learnhow 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 denotingcourse completion.

What Is in a Part?

Each of the eight parts of the course is dedicated to a particular facet of Acumatica ERP functionalityand consists of lessons that you are supposed to complete. Each part begins with a Company Storytopic 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 arelearning. At the end of some lessons, under the Related Links section, you can find links to moreinformation about the concepts and forms that are used in the lesson, and about the related conceptsthat 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 http://partner.acumatica.com/(login required). The same documentation is included in the Acumatica ERP instance, which you canfind under the Help menu, or you can search for help articles in the system (see the screenshot below).

http://partner.acumatica.com/


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 companyto Acumatica ERP with specific data to use for the next parts of the training. To create a company withthe 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 tothe database server and click OK.

4. The Company Setup page opens. To create a new company, click New and select the data to bepreloaded 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 theCompany Setup step of the Acumatica ERP Configuration Wizard during the deployment of a newAcumatica 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 selecteddata. The first login and password to log in to the new company is admin:setup, then you will beasked to change the password as needed.


Figure: Selecting the data to be preloaded to the new company

| 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 asingle tenant company of Acumatica ERP. You will configure the system for financial accounting in tworelated companies, Software Inc. and Computers Inc., which are separate legal entities according to thecompany story of this training course. You will also configure the companies' cash accounts, and thesubaccount 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 companybranches, their posting ledgers, and the account mapping defined for automatic balancing of thetransactions across companies.

The lessons of this part should be completed on the empty database (out-of-the-box company).

| Company Story: Related Companies | 10

Company Story: Related CompaniesIn 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 parentcompany named ABC Management. (The parent company is outside of the scope of this course). Bothcompanies 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 theorganizational 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 thecompanies according to their organizational structure and the requirements described in the followingsections:

• Reporting Requirements

• Transaction Processing Requirements

Reporting Requirements

The companies provide similar services to their customers and operate independently. According totheir 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. Thecompany prepares the total company balance sheet.

• ABC management requires a consolidated Software and Computers balance sheet.

• Income statement (profit and loss statement) requirements:


• Each company prepares its own income statement.

• The Computers company needs to report its profit and loss by company office and thecompany 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 Computerscompany doesn't need to report the assets and liabilities of each office; therefore, the assets andliabilities don't necessarily have to be balanced within each office. The assets and liabilities should bebalanced 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 processAccounts 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 paymentfor the services delivered by both companies together during a joint project. This type of intercompanytransaction should be balanced on the books of each company so that the companies can individuallyreport their financials.

For example, consider the following transaction that should be recorded and balanced on the books ofeach company. The Computers company processes a $1000 AP bill for a purchase of office equipmentfor two companies, where $700 is the purchase for the Software company. This intercompanytransaction 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


The last entry makes each transaction balanced on the books of each company—that is, the debit totalequals the credit total for each company. These entries are the balancing entries of the intercompanytransaction, which could be automatically added by the system according to the specified rule—accountmapping.

The Computers company may process a single transaction for two offices at once, such as a single billfor two offices. According to the reporting requirements of the Computers company, such transactionsdon't necessarily have to be balanced on each office's books because the company uses only aconsolidated balance sheet. For example, suppose the headquarters of the Computers companyprocesses a $1000 AP bill for a purchase of office equipment for two offices, where $700 is the purchasefor 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 equalby the entire company.

| Configuring Companies | 13

Configuring CompaniesFor a number of legal entities, you can set up Acumatica ERP in one of two ways, depending on thebusiness 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 indifferent 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 islocated in France, you have to use two tenants for these companies. To prepare consolidated reportsthat include the financial data of both subsidiaries, you have to set up the process of translation intoa single reporting currency and set up the process of data consolidation across the tenants. (Theseprocesses 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 oneAcumatica ERP instance.

Figure: Tenants in Acumatica ERP

Within a tenant, you have to create one branch or multiple branches. A branch is a logical entitythat is selected by the user after the user has signed in to Acumatica ERP. Branches can representindependent 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'soffices.

If you can set up related companies as branches, you can take advantage of branches in the system asfollows:

• Use the provided out-of-the-box reports by branch and consolidated reports, and prepare anyneeded reports based on branches.

With branches, you don't need to have a subaccount segment to segregate the profit and lossreporting by company location; you can use branches for that.

• Automate the balancing of intercompany or intracompany transactions by the specified rules(account mapping).

| Configuring Companies | 14

• Configure user access to branches based on user roles so that only the users assigned to a certainrole have access to specified branches. (For more information, see Branch Security Administrationin the Acumatica ERP User Guide.)

• Configure user access to sensitive data so that certain users have access to certain accounts andsubaccounts within the branches to which they have access. (For more information, see BranchSecurity 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, andemployee IDs).

In the example of this course, the Software and Computers companies match these conditions and youcan 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 LinksBranch Security Administration

https://partner.acumatica.com/Main.aspx?CompanyID=USA&ScreenId=WP000000&PageID=2062b3d5-ce37-4664-aa94-b0bd2340af91

| Lesson 1: Planning and Enabling Features | 15

Lesson 1: Planning and Enabling FeaturesTo start this course, you have prepared a new tenant on Acumatica ERP, which you are going toconfigure for financial accounting in the Software Inc. and Computers Inc. companies. Before youcan configure any module, you have to enable all required features in the system according to thefunctionality 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 youneed them in the course lessons. In production, conversely, we recommend that you enable allthe 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 (thegroup 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 ActivateLicense form (SM201510; Configuration > Common Settings > Licensing). For educational purposes ofthis course, you use Acumatica ERP under the trial license that doesn't require activation and providesall available features. For production, you have to activate the purchased license; each particularfeature may be a subject to additional licensing; please consult the Acumatica ERP sales policy fordetails.

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 thatyou have specified some configuration that uses the feature, or there is data that refers to feature-specificentities. For example, if there are general ledger transactions with subaccounts, disabling the Subaccountsfeature may cause unexpected results, including the data loss. The use of subaccounts is described ingreater detail further in this course.

| Lesson 2: Planning IDs and Configuring Segmented Keys | 16

Lesson 2: Planning IDs and Configuring Segmented KeysIn this lesson, you will learn about configuring identifiers in Acumatica ERP. This lesson is forinformation 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 thatwill 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 eachof the listed entities. The segmented key specifies the length, segmentation, auto-numeration, andvalidation 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 youneed them. First of all, you need to configure the business account IDs (see the detail informationbelow). There are other entities for which you might need to configure IDs in a live system, such asinventory items, but this is outside of the scope of the course. For more information, see the IdentifierSegmentation article in the Acumatica ERP User Guide.

Before the first transaction or document will be created, you also have to configure the numeration ofgeneral ledger (GL) batches and documents in the system. For GL batches and documents, you don'thave to configure segmented keys. You only have to configure the numbering sequences that definethe format of automatically assigned numbers. (Configuring numbering sequences for GL batches anddocuments 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 thestructure of IDs, you have to consider the naming requirements, the data records that might needto be migrated to the system, and the specifics of business account IDs in Acumatica ERP, which aredescribed below. If you want to use auto-numerated IDs, make sure you provide them long enough forthe future.

In this course, we need the following structure of business account IDs, and you have to appropriatelyconfigure 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 V000000001

• Customer IDs of one 10-symbol auto-numerated segment with prefix C, such as C000000001

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. TheCUSTOMER and VENDOR segmented keys inherit their structure from BIZACCT and apply to customerIDs and vendor IDs respectively (see the diagram below). The EMPLOYEE segmented key also inheritsthe structure from BIZACCT and applies to employee IDs (not used in this course).


Figure: Segmented keys used for business accounts

You don't have to configure anything in the BIZACCT segmented key in this course. The neededstructure of branch IDs matches the default settings of BIZACCT, which you can review on theSegmented Keys form (CS202000).

For customer IDs and vendor IDs, you have to configure automatic numeration. To make vendor IDsand customer IDs auto-numerated in separate sequences, you have to specify different numberingsequences in the VENDOR and CUSTOMER segmented keys, but not in BIZACCT. See Auto-NumeratedSegments.

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 shouldbe numerated.

Since you need individual sequences for customers and vendors, you have to specify differentnumbering sequences in the CUSTOMER and VENDOR segmented keys. After you have specified thedifferent numeration in the segmented keys, the system will automatically insert appropriate customerand 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 numberingsequence in the CUSTOMER and VENDOR segmented keys and these business accounts would gettheir IDs from the same sequence. For example, if you specify the same numbering sequence thatstarts from 0000000001 in the CUSTOMER and VENDOR segmented keys, you might have vendor0000000001, customer 0000000002, vendor 0000000003, and so on. (If you specify the numberingsequence 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 toconfigure the vendor IDs and customer IDs are described in detail in the data migration lessons furtherin 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 isUnicode. 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 canselect a more restricted set of characters, for example, Alphanumeric, which allows only Latin lettersand 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


entered by users to uppercase, and the system saves values to the database in uppercase. If youspecify 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 Valuesform (CS203000; Configuration > Common Settings > Segmented Keys) and select the Validate checkbox for the segment in the segmented key. On the Segment Values form (CS203000), you can add onlyvalues that match the Edit Mask setting of the segment; the Case Conversion setting also applies tothem. When the user enters a value into a validated segment, the system checks that the value belongsto the list of allowed values and shows an error if it doesn't. You will configure validated segments inthe SUBACCOUNT segmented key further in this course.

If you need to have separate lists of segment values between vendors and customers, you have to selectthe Validate check box in the CUSTOMER and VENDOR segmented keys, but not in BIZACCT. After thatyou can define the lists of allowed values for the corresponding segments of the CUSTOMER and VENDORsegmented keys.

If you make an auto-numerated segment, you have to specify the numbering sequence in thesegmented 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 mustmatch the Edit Mask setting of the segment. For example, if you use numbers with a prefix, suchas C000000001, you have to specify Alphanumeric or Unicode edit mask for the segment. You willconfigure auto-numerated segments in the CUSTOMER and VENDOR segmented keys further in thiscourse.

Related LinksIdentifier Segmentation

https://partner.acumatica.com/Main.aspx?CompanyID=USA&ScreenId=WP000000&PageID=a2f667ab-0de9-4738-9f05-58e9cbfc1735

| Lesson 3: Subaccounts | 19

Lesson 3: SubaccountsIn this lesson, you will configure the subaccount structure in the system. If the companies decide to usesubaccounts, 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 sourceand sales region. To support these categories, you will configure the subaccount with segments asshown in the picture below.

Figure: The structure of subaccounts

To configure the subaccounts that provide the needed categories for reports, you will complete thefollowing 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 witha subaccount; otherwise, the data may become inconsistent after the feature is disabled.

2. Open the Segmented Keys form (CS202000; Configuration > Common Settings > SegmentedKeys) 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 SUBACCOUNTsegmented key.

You have selected the On-The-Fly Entry check box to make users able to combine subaccountsfrom the needed segments during the data entry. For each segment, the user can type anallowed value or press F3 to select a value from the predefined list. Each new combination issaved 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 haveto predefine all possible combinations on the Subaccounts (GL203000) form, and users will beable to select only entire subaccounts from this list.


On the Subaccounts (GL203000) form, you can deactivate a combination, so that the users won'tbe able to create a new document or transaction with this combination. Also, on this form, you canspecify the description of a particular combination to use this description in the auto-expanded unitsand 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, CaseConversion: 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 toselect the Unicode edit mask to be able to use the ? and * wildcard characters in the subaccountselection expressions in data sources of analytical reports (ARM). If you instead selectedAlphanumeric, 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 ofonly these values. Each value in the list must comply with the format specified in the Edit Mask of thesegment.

Since the Validate check box is selected, the system checks that an entered value is from the list of valuesallowed for the segment. If the Validate check box is cleared, the system checks whether the entered valuematches 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


Value Description

SAL Sales

CON Consulting

000 Non-specific

3. In the second row of the table, select 2 in the Segment ID column, and define the revenuesource codes (shown below) for segment 2.

Value Description

TR Training

CU Customization

SU Support

CO Consulting

00 Non-specific

4. In the third row of the table, select 3 in the Segment ID column, and define the sales regioncodes by uploading them from the USAStateCodes.xlsx file. While uploading the file, in theColumn 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 canreview the account balances broken down by subaccounts and build analytical reports. The examples ofsubaccount use are described further in this course.

You can restrict users' access to particular subaccounts, which is outside of the scope of this course. Formore information, see Overview of Restriction Groups in the Acumatica ERP User Guide.

Related LinksOverview of Restriction Groups

https://partner.acumatica.com/Main.aspx?CompanyID=USA&ScreenId=WP000000&PageID=ad9a42c1-ff5d-4298-86d9-683039c18512

| Making Corrections to the Configuration of Accounts and Subaccounts | 22

Making Corrections to the Configuration of Accounts andSubaccounts

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 beforeimplementing the system. However, you might find yourself in a situation where you need to makechanges to the configuration in a live system. Below is the description of possible options. Beforemaking any changes, we recommend that you have a backup of data so that you are able to rollbackthe 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 addmore accounts to the chart of accounts, but you cannot delete an account if there are transactions thatrefer to this account. If you need to make changes to the chart of accounts in a live system, you havethe following options:

• Deactivate an account on the Chart Of Accounts form (GL202500). The history of transactionsremains 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 updatesthe account number in the history of transactions and the new number appears in the systemreports and inquiries. Notice that changing the number of the account can make the auditingmore 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 unnecessaryaccounts on the Chart Of Accounts form (GL202500).

Subaccounts

After the subaccounts are fully configured and transactions are posted, you can only append a segmentto the subaccount, but you cannot delete segments because it may cause data loss. If you need tochange 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 newdocuments 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 oldvalue to the new value on the Subaccounts (GL203000) form, and the history of transactions willbe updated.

• You can add a new segment to the end of the subaccount. In this case, the account/subaccountcombinations that are referred to in existing transactions will get an empty value in the newsegment. You can update the list of these combinations on the Subaccounts (GL203000) form andspecify 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 theunnecessary account/subaccount combinations on the Subaccounts (GL203000) form. After that,you can also deactivate the unnecessary values on the Segment Values form (CS203000) so thatthe users cannot select these values when combining subaccounts "on the fly".

| Lesson 4: Branches | 23

Lesson 4: BranchesYou have already configured the segmented key for branch IDs (you will use the default one), and nowyou can create the first branch in the system.

For each company, you have to create the needed number of branches. You have decided to createthe branches that represent the companies' offices. Therefore, you have to create one branch for theSoftware company and two branches for the Computers company. The companies will have transactionsposted to these branches.

Both companies require filing Form 1099-MISC. The Software company consists of one branch andyou will use this branch to specify the legal entity in the Form 1099-MISC report in the system. TheComputers company consists of more than one branch, and you have to create an additional branchthat will specify the legal entity in the Form 1099-MISC report in the system. You have to specify thisadditional branch as the consolidating branch in the company's ledger. The consolidating branch is usedonly in Form 1099-MISC and tax reports to specify the legal entity in the report. No transactions areposted 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'sheadquarters)

• 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 andtax reports

To create the branches, do the following:


• Multi-Branch Support (within the Finance group)

By enabling this feature, you can create more than one branch in the system. If you have anumber of branches in the system, you can post transactions to each individual branch but youcannot 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), createand 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 willbe automatically used for all branches.

• The WEST branch:

• Branch ID: WEST

| Lesson 4: Branches | 24

• Branch Name: Western office of Computers Inc, headquarters

• Company Name: Computers Inc.




• The EAST branch:

• Branch ID: EAST

• Branch Name: Eastern office of Computers Inc.





• The COMP branch:

• Branch ID: COMP

• Branch Name: Consolidating branch for Computers Inc.



| Lesson 5: General Ledger | 25

Lesson 5: General LedgerEach branch must be associated with a posting ledger that accumulates the general ledger transactionsposted by the branch. Based on the transaction processing requirements of the companies and theirorganization structure, you determine that you need two posting ledgers in the system (see the imagebelow). Transactions between the WEST and EAST branches of the Computers Inc. company do notrequire balancing. To provide users with the ability to make such transactions, you have to create oneposting ledger for these branches. The COMP branch is the consolidating branch that is not used fortransactions. For the Software Inc. company, you have to create another ledger and associate the onlySOFT 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. Afteryou have created the ledgers, you have to upload the chart of accounts and specify the General Ledgerpreferences to complete the minimum configuration of the module. Both companies will use the samechart 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 theposting 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


2. 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 boxand ACTUALSOFT in the Posting Ledger box and save the changes, as shown in the followingscreenshot.

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 aconsolidating branch for this ledger. The COMP branch isn't used for transaction posting; this additionalbranch 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 > SegmentedKeys), select the ACCOUNT segmented key and set the length of its only segment to 6.

2. On the Chart Of Accounts form (GL202500; Finance > General Ledger > Configuration >Manage), upload the chart of accounts from the COA_Intermediate.xlsx file, which alreadyincludes the 303000 - Retained Earnings and 302000 - YTD Net Income accounts.

While you are configuring the system, you can change any account number on the Chart ofAccounts form (GL202500), if needed, after the chart of accounts has been uploaded and saved.


However, we do not recommend that you change the account number during the production usageof the system, because it will introduce difficulties with auditing, especially after the accountnumber has been printed and disclosed in company reports.

The chart of accounts includes the 200010 -Due to/from Software Inc and 200011 - Due to/fromComputers 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: 302000 - Year-to-Date Net Income

• Retained Earnings Acct: 303000 - Retained Earnings

• Automatically Post on Release: Selected

| Lesson 6: Balancing Entries for Intercompany Transactions | 28

Lesson 6: Balancing Entries for Intercompany TransactionsAccording to the transaction processing requirements, the companies make intercompany transactions,for example, between WEST (Computers) and SOFT (Software) branches. Also, the Computers companymakes 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 Transactionsfeature, 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 boxappears on the Ledgers form (GL201500) and you can configure the posting ledgers for transactionsbetween branches.

Branches that use the same posting ledger may have transactions:

• Without balancing entries. To enable such transactions, you have to clear the Branch Accountingcheck box for the ledger. After that, the users can make transactions between the branches in thisledger but no balancing entries will be added to these transactions. This is the configuration thatyou will use for the Computers company.

• With balancing entries. For branches that use the same posting ledger, you have to select theBranch Accounting check box in the ledger and define the inter-branch account mapping for thesebranches. After that, the users can make transactions between the branches in this ledger and thebalancing 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. Forthese branches, you have to define the inter-branch account mapping. After that, the users can maketransactions between the branches and the balancing entries will be added to the transactions inthe corresponding ledgers. You will use this configuration for transactions between the Software andComputers companies.

In this lesson, you will configure the processing of transactions as required for the companies anddefine the account mapping for the transactions between the Computers Inc. and Software Inc.companies. Complete the following steps:


• Inter-Branch Transactions (within the Multi-Branch Support node)

2. On the Ledgers form (GL201500), make sure that the Branch Accounting check box is cleared forthe ACTUALCOMP ledger.

This is the configuration that you need for the Computers company. If the Branch Accountingcheck box is cleared, the system allows transactions between the branches without accountmapping, therefore no balancing entries will be added to the intracompany transactions in thisledger. 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 ofintercompany transactions between Software and Computers. You need to define the followingmappings:

• 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 balancingentries in the branch that originates the transaction. If the account that should be updatedin the destination branch falls into the range between Account From and Account To selectedfor the branch, the balancing entry is posted to the specified offset account and subaccount inthe originating branch. In the destination branch, the balancing entry is posted to the offsetaccount and subaccount selected on the Transaction in Destination Branch tab for the originatingaccount. An example is described further in this lesson.


The Transaction in Originating Branch and Transaction in Destination Branch tabs are available onlyif the Inter-Branch Transactions feature is enabled.

a. Originating branch: SOFT, Posting Ledger: ACTUALSOFT

Transaction in Originating Branch

DestinationBranch

Account From Account To Offset Account OffsetSubaccount

EAST 000000 999999 200011 -Due to/fromComputers Inc.,RELCURLIAB*

000-00-00

WEST 000000 999999 200011 -Due to/fromComputers Inc.,RELCURLIAB*

000-00-00

Transaction in Destination Branch

DestinationBranch


EAST 000000 999999 200010 -Due to/fromSoftware Inc.,RELCURLIAB*

000-00-00

WEST 000000 999999 200010 -Due to/fromSoftware Inc.,RELCURLIAB*

000-00-00

* RELCURLIAB (liability) is an account class that is preconfigured on the Account Classesform (GL202000). As the offset account for balancing entries, you can use an asset orliability account that can be assigned to an appropriate account class as you need forreporting.

b. Originating branch: EAST, Posting Ledger: ACTUALCOMP


DestinationBranch


SOFT 000000 999999 200010 -Due to/fromSoftware Inc.,RELCURLIAB

000-00-00


DestinationBranch


SOFT 000000 999999 200011 -Due to/fromComputers Inc.,RELCURLIAB

000-00-00

c. Originating branch: WEST, Posting Ledger: ACTUALCOMP


You can use the copy-paste functionality on the form to copy the account mapping definedfor EAST to the WEST account mapping.


DestinationBranch


SOFT 000000 999999 200010 -Due to/fromSoftware Inc.,RELCURLIAB

000-00-00


DestinationBranch


SOFT 000000 999999 200011 -Due to/fromComputers Inc.,RELCURLIAB

000-00-00

In the image below, you can see an example of a bill that was released and the transactions wereposted after you set up the inter-branch account mapping. The $2400 bill was processed by theWestern office of Computers Inc. (that is, WEST is the originating branch of the transaction). Thebill contains three lines of expenses with different destination branches: $800 expenses of the WESTbranch, $700 expenses of the EAST branch, and $900 expenses of the SOFT branch. The transactionto the EAST branch is the transaction within the Computers company, which doesn't require balancingin the company's ledger according to the transaction processing requirements. The transaction to theSOFT branch belongs to the Software company, and system has added the $900 balancing entry toeach 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 processaccording to the inter-branch account mapping defined for branches. The account mapping that isdefined for the WEST branch as for the originating branch is applied as follows: "In the transaction thatoriginates from WEST, for each journal entry with the SOFT destination branch, add the balancing entrywith WEST to the 200010 -Due to/from Software Inc. account and the balancing entry with SOFT to the200011 - Due to/from Computers Inc. account."

The examples of inter-branch transactions are described in detail further in this course.


Figure: Balancing entries added to the transaction that originates from WEST and has SOFT as one of the destinationbranches

In Column Configuration of the table on the Journal Transactions form (GL301000;), you can add theLedger column to the table to view the ledger of the journal entries. By default, the column is hidden.

| Lesson 7: Cash Accounts | 32

Lesson 7: Cash AccountsFinally, you have to configure the cash accounts for companies. Both companies have their own cashaccounts that you will create in the system:

• 102000-SOFT: The checking account of the Software Inc. company

• 102000-COMP: The checking account of the Computers Inc. company

The accountant of the headquarters of the Computers Inc. company can manage both cash accountsand process transactions to and from them.

In this lesson, you will configure the Cash Management module and create the cash accounts for thecompanies' 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 thefollowing 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: 105000 (Cash in Transit Account)

• Cash-in-Transit Subaccount: 000-00-00

• 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 accountsfor Software Inc. and Computers Inc. with the settings as listed below:

• 102000-SOFT - Checking Account:

• Cash Account: 102000-SOFT

• Account: 102000 (Checking Account)

• Subaccount: 000-00-00

• Branch: SOFT

• Description: Checking Account of Software Inc.

• Restrict Visibility with Branch: Cleared

| Lesson 7: Cash Accounts | 33

• 102000-COMP - Checking Account:

• Cash Account: 102000-COMP

• Account: 102000 (Checking Account)


• Branch: WEST

• Description: Checking Account of Computers Inc.


The system can create general ledger transactions only to the existing branch-account-subaccountcombinations.

After you have done the lessons of this part, you have set up the main configuration entities of thesystem (branches, ledgers, cash accounts) but the compete configuration of the financial modules is notyet ready—that is, you have to define the financial year and generate the financial periods in GeneralLedger, finish the configuration of the Cash Management module, and configure the Accounts Payableand Accounts Receivable modules. However, you skip these final configuration steps in this coursebecause they are covered in detail in the F100 Financials: Basic course. For informative purposes, thereference 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 asdescribed in How to Use This Course.

| Review Questions | 34

Review QuestionsAnswer 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 AcumaticaUniversity.

| 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 someexamples of automatically balanced transactions. You have already configured the system so that thetransactions 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 youhave 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 withthe 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 thesystem 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: FinalConfiguration Reference and Appendix: Demo Data Reference at the end of the course guide.

| Company Story: Intercompany Transactions | 36

Company Story: Intercompany TransactionsAccording to the story, the headquarters of the Computers company pays all shared bills for expensesincurred 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 transactionsoriginate from the WEST branch, which represents the headquarters of the Computers company, andhave different destination branches. The transactions illustrate the implementation of the transactionprocessing 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 billof $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 (originatingbranch 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, forSoftware 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 branchWEST, 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 $4109.89 invoice from imported data. (payment originating branchWEST, destination branches WEST $3900 and SOFT $4109.89)

Cash Management documents:

• Funds transfer (Lesson 9): WEST funds transfers of $3930 to SOFT

| Lesson 8: Accounts Payable Documents | 37

Lesson 8: Accounts Payable DocumentsIn 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 tothe 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 companyor both companies. The transactions are automatically balanced across the companies' ledgers so thatthe companies can independently report their assets and liabilities. In this lesson, you will make thefollowing 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 servicingin the Western office in the amount of $100 and in the Eastern office in the amount of $200. Theservicing took place in 01-2014, and the bill is due in 30 days. Enter and process the bill in the systemas follows:

1. Select WEST as the current branch. To do this, click the company's name and select the neededbranch 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 currentduring the current user session. Current branch is used for insertion of the default values intonew documents and report parameters. When you create a new document, the system insertsthe 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 theFinancial Details tab into the vendor's documents by default.

The system also provides user access according to the branch security settings, if specified. Bydefault, if you haven't configured any access restrictions by branch, all users have access to allobjects of any branches in the system. For more information about user access by branch, seethe Related Links section.

2. On the Bills and Adjustments form (AP301000; Finance > Accounts Payable > Work Area >Enter), create a bill from the V000000072 (Airgas, Inc.) vendor with the following settings:

• Type: Bill

• Vendor: V000000072

• Terms: 30D

• Date: 1/10/2014


• Post Period: 01-0214

• Description: Air conditioner servicing

3. On the Document Details tab, add a line with the repair expense for the Western office and thefollowing settings:

• Branch: WEST

• Ext. Cost: 100.00

• Account: 758000 (Repair & Maintenance Expense)


4. On the Documents Detail tab, add a line with the repair expense for the Eastern office (the EASTbranch) and the following settings:

• Branch: EAST

• Ext. Cost: 200.00



5. 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 branchand one destination branch or multiple destination branches. The AP account is credited forthe originating branch specified on the Financial Details tab of the bill. The default originatingbranch is the one to which the user is logged in while creating the document. The destinationbranches are specified in the document lines. Accounts from each document line are debited forthe destination branch specified in this line. Thus, WEST is the originating branch, and WEST andEAST 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 balancingentries. Because the transaction involves the WEST and EAST branches, it is posted to theACTUALCOMP ledger. Within a ledger, transactions can be either balanced or non-balancedacross branches. For the ACTUALCOMP ledger, the Branch Accounting check box is cleared on theLedgers form (GL201500; Finance > General Ledger > Configuration > Setup); therefore, thebalancing 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 posttransactions across these branches.)

In the batch, the originating branch is displayed in the Branch box of the Batch Summary areaon the Journal Transactions form (GL301000). The ledger that is displayed in the batch summaryis the posting ledger of the originating branch of the transaction. This is not necessarily theledger to which all transactions of the batch are posted. Each transaction consists of journalentries that are posted to the posting ledger of the branch of the journal entry. Thus, the WESTand EAST journal entries are posted to the ACTUALCOMP ledger. The branch's transactions areposted to only the ledger that is specified for the branch on the Inter-branch Account Mappingform (GL101010; Finance > General Ledger > Configuration > Manage).


On the Journal Transactions form (GL301000), you can add the Ledger column to view the ledgerto which each journal entry has been posted.

If the Consolidated Posting to GL feature is enabled, the system groups the transactions intobatches 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 the102000-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 aregoing 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 andPayments form (AP302000) for AP check.

The WEST branch is the originating branch of the transaction that will be generated on releaseof the AP check. The cash account is updated for the branch of the cash account. The destinationbranches of the AP check are the originating branches of the bills for which the payment ismade. 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 01-2014, 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 theAP 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 fromRepair Master. The $2400 utility bill includes the expenses incurred by all offices of the ABC companiesand should be paid within 30 days of 1/12/2014. $700 of the bill is incurred by the Eastern office ofComputers, $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:


2. On the Bills and Adjustments form (AP301000), create a bill from the V000000090 (Repairmaster) vendor:

• Type: Bill

• Vendor: V000000090

• Terms: 30D


• Date: 1/12/2014


• Description: Office furniture repair

3. On the Document Details tab, add a line with the repair expense for the Western Los Angelesoffice of Computers Inc. with the following settings:

• Branch: WEST

• Ext. Cost: 800.00



4. On the Document Details tab, add a line with the repair expense for the Eastern Los Angelesoffice of Computers Inc. and the following settings:

• Branch: EAST

• Ext. Cost: 700.00



5. On the Document Details tab, add the line with the repair expense for the Software company'soffice and the following settings:

• Branch: SOFT

• Ext. Cost: 900.00



6. Release the bill and review the generated batch.

The system recognizes that the transaction should be balanced because the transaction is postedto two ledgers, ACTUALCOMP and ACTUALSOFT. The system automatically adds the balancingentries to the batch during the posting process.

In the batch generated from the AP bill, you can see that the balancing entries match theaccount mapping that you have defined on the Inter-branch Account Mapping form (GL101010)for the WEST originating branch, as the picture below shows.


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 thebatch 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. Thecompany pays the $2400 bill of the Computers company and two outstanding bills of the Softwarecompany for $1300 and $980; these bills have been imported during data migration. Enter and processthe payment as follows:


2. On the Checks and Payments form (AP302000), select the Repair master (V000000090) vendor,the CHECK payment method, and the 102000-COMP cash account for the AP check.

Alternatively, on the Bills and Adjustments form (AP301000), for the $2400 bill, you can select PayBill/Apply Adjustment to make the system generate the AP check.

3. Select the 1/31/2014 application date and 01-2014 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 beeninserted into the document by default. The destination branches of the AP check are theoriginating 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 documentsto 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 clickingthe Load Documents button. If the Payment Amount is zero, the system selects all applicable


documents; otherwise, the system selects the documents up to an amount that is not greater thanthe specified Payment Amount.

6. Specify $4680 as the payment amount, print the check, and release the document in thesystem.

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 200000 - Accounts Payable account has been debited for the originating branches of the billsto which the AP check has been applied. The last two journal entries are the balancing entriesthat have been automatically added to the batch during the posting process. The balancingentries have been generated according to the account mapping defined between the WESToriginating branch and the SOFT destination branch. Each balancing entry has the referencenumber of the document from which it has been generated—that is, the reference number of theAP check.

If the Consolidated Posting to GL feature is enabled and you release multiple documentssimultaneously, the balancing entries would not be consolidated in the batch. Balancing entrieswould be separate with the reference number of each released document from which they havebeen generated.



| Lesson 9: Accounts Receivable Documents | 43

Lesson 9: Accounts Receivable DocumentsThe Software and Computers companies participate in a project and deliver a complex service to thecustomer. The headquarters of the Computers company processes the invoice to the total amount of theproject, and this transaction is automatically balanced across the two companies' ledgers so that eachcompany 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 providedservices 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:


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 theFinancial Details tab into the customer's documents by default.

2. On the Invoices and Memos form (AR301000; Finance > Accounts Receivable > Work Area >Enter), create an invoice for the C000000086 (YY Studio) customer with the following settings:

• Type: Invoice

• Customer: C000000086

• Date: 1/20/2014


• Description: Services delivered for project P0001

3. On the Document Details tab, add a line for the $900 revenue received by the Computerscompany with the following settings:

• Branch: WEST (you can process the sale to either branch)

• Ext. Price: 900.00

• Account: 403000 (Sales - Consulting Services)


4. On the Document Details tab, add a line for the $3000 revenue received by the Softwarecompany:

• Branch: SOFT

• Ext. Price: 3000.00



5. Release the invoice and review the generated batch.

In the batch, the AR invoice contains the journal entries shown in the following screenshot:

| 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 theproject and for another invoice that has been imported for the Software company during datamigration. Perform the following instructions:

1. 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: C000000086 (YY Studio)

• Payment Method: CHECK


• Payment Amount: 8010.00

• Application Date: 1/30/2014

• Application Period: 01-2014

• Payment Ref.: 01302014Y

• Description: Payment for the P0001 project and invoice INV000016

2. 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 $4109.89 invoice with the INV000016 referencenumber, 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 110000 - Accounts Receivable account has been credited under the originating branchesof the invoices to which the payment has been applied. The last two journal entries are thebalancing entries between the SOFT and WEST branches.



| Lesson 10: Funds Transfers | 45

Lesson 10: Funds TransfersAt the end of the 01-2014 period, the companies reconcile their due-to and due-from amounts to payoff one another. In this lesson you will make the funds transfer between the companies and review thetransactions for 01-2014 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 2014

2. Make the funds transfer between the companies

1. Reviewing the Balances of the Due-To/From Accounts for January 2014

1. Select WEST as the current branch.

2. On the Account Summary form (Finance > General Ledger > Work Area > Explore), clear theBranch box, and select ACTUALCOMP as the ledger and 01-2014 as the period.

On the Account Summary form you can see that the WEST branch owes to $3929.89 to Softwarecompany for 01-2014 (as shown in the screenshot below).

Figure: Balance of the 200010 account for 01-2014

The balance of the 200010 - Due to/from Software Inc. account for the WEST branch plus thebalance of the 200010 - Due to/from Software Inc. account for the EAST branch must equal thebalance of the 200011 - Due to/from Computers Inc. account for the SOFT branch.

3. In the table, click the row for the 200010 - Due to/from Software Inc. account, and click AccountDetails on the form toolbar.

4. On the Account Details form (GL404000; Finance > General Ledger > Work Area > Explore) thatis 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 theentry has been generated (see the following screenshot).


Figure: The balancing entries in the 200010 account for 01-2014

To review the document that generated the entry, click the View Source Document button on theform toolbar.

2. Making the Funds Transfer Between the Companies

On 1/31/2014, the Computers company pays $3930 to the Software company. Process the fundstransfer in the system as follows:

1. Set the business date to 1/31/2014.

2. 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 andtransfer-out. You have to configure user rights so that only an authorized person has access to thisform.

3. Create a funds transfer from Computers Inc. to Software Inc. with the following settings:

• Description: Intercompany payoff 01-2014

• Source Account: 102000-COMP (Checking Account of Computers)

• Transfer Date: 1/31/2014

• Document Ref.: 01312014T

• Amount: 3930.00

• Destination Account: 102000-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 canspecify the receipt date later than the transfer date, and the money will be moved first to the cash-in-transit account and then to the destination account. Also, you can enter the bank charges byclicking 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).


Figure: The batch generated on release of the funds transfer

5. On the Account Details form (GL404000), review the balance of the 200010 account for01-2014.

Figure: The balancing entries in the 200010 account after the funds transfer

Notice that the balancing entry from the funds transfer has appeared in the account details.

| Lesson 11: Consolidated Reports | 48

Lesson 11: Consolidated ReportsIn 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 TrialBalance Detailed for the selected branch)

• The trial balance for a period by company (the out-of-the-box Trial Balance Summary report withno 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 LossSoftware & 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 thecourse, Balance Sheet Software & Computers)

Complete the steps of the lesson as follows:

1. Review the trial balance for the 12-2013 period for the WEST and EAST branches of ComputersInc.

You can view the summary and detailed trial balance by branch. To view the trial balance bybranch, 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 thebranch 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


Figure: Trial Balance Detailed for the WEST branch

Notice that Trial Balance Detailed report (GL632500) displays income and expenses broken downby subaccounts.

2. Review the trial balance for the 12-2013 period for the Computers company, and then for theSoftware 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 Computerscompany (shown below), select one of the company branches as the current branch, select theposting ledger of the company and leave the branch empty in the report parameters.


Figure: Trial Balance Summary for Computers Inc.

To view the trial balance for the Software company (shown below), select the SOFT branchas the current branch, and select the ACTUALSOFT ledger and SOFT branch in the reportparameters.

Figure: Trial Balance Summary for Software Inc.

3. Review the profit and loss statement for Software Inc for 01-2014.

Run the Profit and Loss Software & Computers report (Finance > General Ledger > Reports >Financial Statements) for the 01-2014 period. Click Groups and select the Software Inc. unit inthe group menu.


Figure: Profit and Loss report for Software Inc. for 01-2014

The Profit and Loss Software & Computers analytical report has been specially designed for thecourse; for the design notes to the custom ARM reports in the course, see Notes About AnalyticalReports (ARM). The creation and customization of analytical reports is outside of the scope of thiscourse.

4. Review the profit and loss statement for Computers Inc. for 01-2014.

To view the profit and loss by each company's office, select the office from the group menu. Toview the consolidated profit and loss, select the Computers Inc. unit.

Figure: Profit and Loss report for Computers Inc. for 01-2014

5. Review the profit and loss statement consolidated for two companies for 01-2014 by selectingthe 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. andSoftware Inc. nested units.

Figure: Consolidated Profit and Loss report for 01-2014


6. Review the balance sheet for Software Inc and Computers Inc for 01-2014: Run the BalanceSheet Software & Computers report (Finance > General Ledger > Reports > FinancialStatements) for the 01-2014 period.

In the Due to Related row, you can see the total due between the companies, which is $0.11after you have processed the funds transfer from Computers to Software.

Figure: Balance sheet for Software and Computers for 01-2014

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 twobranches, WEST and EAST. The asset total of the two branches is equal to the liability total of thetwo branches of the company. For each individual branch of Computers, EAST or WEST, the assettotal is not equal to the liability total because the system is configured so that only the companytotals are balanced, while the branch totals aren't necessarily balanced.

The Balance Sheet Software & Computers analytical report has been specially designed for thecourse; for the design notes to the custom reports see Notes About Analytical Reports (ARM). Thecreation and customization of analytical reports is outside of the scope of this course.

| 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 theComputers company offices, by company, and as consolidated totals.

• Profit and Loss Budget Performance: This report shows the year-to-date budget execution for thecompanies.

Below are the notes about the structure of the reports and formulas used in the report rows andcolumns.

You can design analytical reports in the Finance > General Ledger > Configuration > Analytical reportsgroup.

Analytical Report in the System

For each analytical report you create a report definition in the system, which specifies the column setand the row set that constitute the report. You then add the report to the site map with a specific URLthat 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 anyunique 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 theelements are correctly referred to in report formulas.

Analytical reports in the site map

ScreenID Title Url

GL.63.41.00 Balance Sheet Software & Computers ~/Frames/RMLauncher.aspx?ID=CBSS.rpx

GL.63.42.00 Profit and Loss Software & Computers ~/Frames/RMLauncher.aspx?ID=CPLCONS.rpx

GL.63.43.00 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 theCalc type and Value =A+B. In the Balance Sheet Software & Computers report, column D displaysthe total on the balance sheet accounts of two companies calculated as the sum of the figuresin columns B and C. A similar approach is used in the CPLBUDG column set of the Profit & LossBudget Performance report. In this report, you have a column with actual totals and a columnwith budget totals for each company. In the third column for each company, you calculate theactual percent of the budget. In particular, you retrieve the consolidated year-to-date balance ofthe Computers company from the B column, retrieve the year-to-date budget amount from the Ccolumn, and calculate the budget performance percent in the D column by using the B/C formula.


You can hide helper columns from which you calculate the needed values by setting the PrintingControl 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 underlyingunits referred to by their unit code in the formula: =@CONS+@SOFT. You calculate the sum in theconsolidating 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 ofthe unit as it is specified for the CONS unit. This unit retrieves consolidated data from theACTUALCOMP ledger, which is used for two branches of the Computers company. To select thedata of a particular branch, you specify the branch and the ledger for the each of the child nodesof the CONS unit, for the EAST and WEST nodes. A child node does not inherit any data sourceparameters 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( Report.GetBranchText(@BranchName),@UnitText). If the report is prepared for a certain branch, the system inserts the branch nameinto the report, otherwise the report is consolidated and the system inserts the description of theunit 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. Beloware 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 seethe following formats of column values:

• In the YTD (B) column, the #,##0.00 format denotes rounding of the amount to hundreds withthe period (.) used as the decimal separator.

• In the % Budget (D) column, the #,##0% format makes the column show only the integer part ofthe 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 systemtakes the date from the @StartPeriod report parameter and displays the date in the specifiedformat.

For more information about constructing expressions like #,##0.00 that define the string format, see thedocumentation 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 beretrieved and select the amount type, such as the ending balance or turnover. The aggregation, therange of accounts and subaccounts, and the ledger from which you take the data are all specified inData Source.


Figure: Retrieving amount by specifying Data Source

Alternatively, you might need to calculate something directly in the report from already retrieved dataor from input parameters. In this case, you select the Calc type of the row or column and specify thecalculation expression in Value. A possible situation when you specify the Value is when you want tosum 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 inputparameters, because they are selected by the user who runs the report. The input parameters areconfigured for the report in the report definition. Notice that for the calculated row or column, you donot specify Data Source.


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 theComputers Inc. company. Columns B and C, to which you retrieve the amounts, have the GL type andthe ledger and the amount type are specified in their data source. In the third column, C, you calculatethe budget performance by specifying the =B/C expression in Value of the column that has the Calctype.

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 followingtechniques:

• Specify a range of accounts by listing the accounts explicitly: For example, in the CPLBUDGrow set, the Advertising expense row shows the amount posted to the 610000 account. The OfficeExpense row shows the sum of amounts posted to the 755000 and 758000 accounts. You can listthe accounts and the account ranges in the Start Account field of the data source separated bycommas, with the start account and end account of a range separated by a colon. For example,the 740000:755000,758000 range includes all accounts between 740000 and 755000 and the758000 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.


For example, the 74?000,75?000 range includes all accounts that start with 74 or 75 and end with000.

If you specify overlapping ranges of accounts for the row set, column set, and unit set, the systemtakes the intersection of ranges. If you have the following rows and columns in the report, theamount in the All Phones row and the Devices column will include only the 420010 and 430010accounts—that is, the intersection of masks 420??? and ???010, and 430??? and ???020. In theexample, the account is not segmented.

Intersection of overlapping ranges for accounts

Columns Devices Accessories

Rows ???010 ???020

iPhone 410??? 410010 410020

Android 420??? 420010 420020

All phones 420???-430??? 420010,430010 420020,430020

• Specify an account class in a row: The row will display the sum aggregated by all account-subaccount pairs where the account is assigned to the specified account class. For example, inthe CPL row set of the Profit and Loss Software & Computers report, the Bank Expenses rowaggregates the amounts on all accounts of the EXBANK account class.

• Specify a range of subaccounts by using a mask: For subaccount segments that have theAlpha, Numeric, or Alphanumeric edit mask, you can use a blank ( ) as a wildcard that means anysymbol at this position. For subaccount segments that have the Unicode edit mask, you can useeither 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 0110 - Consulting row includes all subaccounts that match the 000-CO-__ mask, such as 000-CO-CA, 000-CO-DC, and 000-CO-00. Alternatively, you could specify the mask with the questionmarks as wildcards, as with 000-CO-??.

You can take an intersection of ranges by subaccounts. For example, suppose you record the salesof services to two accounts, 403000 and 404000. You can construct a report with separate columnsfor each type of service provided by the company. You specify the account and subaccount mask foreach row and specify the subaccount mask for each column, as shown in the table below. The systemwill aggregate the figures in the report by intersection of the subaccount masks specified in the rowsand columns. Thus, in the Services - Consulting column, the sales for the 403000 account will includethe sales in all regions that have been recorded with different subaccounts such as 000-CO-CA, 000-CO-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 - 403000 403000, 000-??-?? 403000, 000-CO-?? 403000, 000-TR-??

Sales - 404000 404000,000-??-?? 404000, 000-CO-?? 404000, 000-TR-??

• Specify the condition for auto-expansion of a row: In the data source of a row, you canspecify a range of accounts or subaccounts and select the expansion mode—that is, whether therow should be displayed as multiple rows, each of which correspond to one account or subaccountfrom the specified range. If you use auto-expansion of a row, in the Row Description field, you canselect the source of the row description that will be displayed for each line of the expanded set.


In the CPLBUDG row set, the 0210 - Salaries row uses the 770000 account and is auto-expandedby the subaccount that match the ???-00-00 mask. This mask includes the following subaccounts:ADM-00-00, DEV-00-00, SAL-00-00, CON-00-00, and 000-00-00. The Row Description of eachline of the auto-expanded row is set to Description-Code (see the image below) that makesthe system display the subaccount description that you can specify on the Subaccounts form(GL203000; Finance > General Ledger > Configuration > Manage) and the subaccount code. (Ifyou expand a row by account, the code is the account number). For the five subaccounts listedabove, the descriptions have been specified on the Subaccounts form for use in the reports.Because the 000-00-00 subaccount is not used with the 770000 - Salaries account, this line willalways be empty and you select the Suppress Empty check box for the 0210 row in the row set tohide 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 specifya 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 ofwhich corresponds to one account or subaccount from the specified range. When the Expandoption is enabled for a unit, the system automatically adds all matched subaccount or accountcombinations 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. Forexample, if you define the following Start Sub value in the system: ADM-??-**, the system willgenerate 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 withADM to the tree view.

To be able to enter special characters in the start and end fields of the data source, the segmentedkey 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 andLoss Software & Computers report, the % YTD Total column shows the percent that constitutes the


amount in the row with respect to the row with the total amount of the group of rows. For example, ifthe 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 oftotal, 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 BaseRow column. Thus, for the 0300 - Salaries expense row, the base row is 0400, which is theoperating expense total. In the same way, the base row applies to every line of the 0100 - Sales- Details automatically expanded row. The 0102 - 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 rowvalue. In the column's Value, the base row is referred to by the @BaseRowCode parameter inthe calculation expression: =B/Value(@BaseRowCode, 'B'). For each row, the expressionreturns 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 descendingorder independently from one another. For each group of rows, the sorting expression is added to theCPL row set in an additional row of the Sort type with the value:

• =SORTD('0100','0100','B'): Sorting of the automatically expanded sales articles indescending order

• =SORTD('0300','0345','B'): Sorting of expense articles in descending order

• =SORTD('0170','0170','B'): Sorting of the automatically expanded other revenue articlesin descending order

In every report that uses the CPL row set, the listed groups of rows will be sorted as specified. If thereis 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 exampleSORT('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 forthe Computers company is calculated by the simple B/C formula, where each actual figure B is dividedby the budget figure C. In the formula, you don't have to check C for zero because if C is zero, thesystem doesn't show any error and returns a zero amount in the row. In previous versions of AcumaticaERP, 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 systemwill use the settings of the row. For example, if you have specified the 770000 account for a row andthe 758000 account for a column and run the report that uses the row set and the column set withthese items, the system will retrieve the data for the 770000 account taken from the Data Source ofthe 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 offsetspecified in the Data Source, and a row has a 0 year offset in its Data Source. If the column and therow are used in the same report, the system will apply the year offset of the row, which is 0. If the yearoffset is empty for the row and -1 for the column, the system will apply the year offset of the column,which is -1.


If a parameter overlaps between the unit, row, column, and report definitions, the system uses theparameter specified for the unit (if any). If the parameter is not specified for the unit or there is no unitset in the report, the system takes the parameter of the row. If the parameter is not specified for therow, 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).



• 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.

| Part 3: Income and Expense Classification by Subaccount | 62

Part 3: Income and Expense Classification bySubaccount

In this part of the course, you will see examples of subaccount usage in documents. You will learn toconfigure and use automatically combined subaccounts in Accounts Payable and Accounts Receivabledocuments. 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 inthe Accounts Receivable documents.

The lessons of this part should be completed on the F200Init database. You can continue to use thedatabase where you have completed the lessons of the previous part.

| Company Story: Subaccounts in Documents | 63

Company Story: Subaccounts in DocumentsYou 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 consultingdepartments in two offices of Computers Inc. for 01-2014. Then you will review how expensesare displayed by subaccounts in the trial balance.

2. Configure automatically combined subaccounts for Accounts Receivable documents and see howthe subaccounts are combined in invoices.

| Lesson 12: Subaccounts in General Ledger Transactions | 64

Lesson 12: Subaccounts in General Ledger TransactionsIn this lesson, you will enter and post the transactions of salary payment to employees of theadministration and consulting departments in two offices. Do the following:

1. 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


• Description: Salary payment to departments for 01-2014

2. 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 770000 (SalariesExpense)

ADM-00-00 4000.00 0.00

WEST 770000 (SalariesExpense)

CON-00-00 2000.00 0.00

EAST 770000 (SalariesExpense)

CON-00-00 1000.00 0.00

WEST 102000 (CheckingAccount)

000-00-00 0.00 7000.00

You can specify the default subaccount to be inserted into the transactions that you enter by usingthe 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 Accountsform (GL202500).

3. For the WEST branch, review the trial balance for 01-2014 broken down by subaccounts. To dothis, log in to the WEST branch and run the Trial Balance Detailed report (GL632500; Finance >General Ledger > Reports > Balance) with the following parameters:


• Branch: WEST

• Financial Period: 01-2014

| Lesson 12: Subaccounts in General Ledger Transactions | 65

Figure: Trial Balance Detailed for the WEST branch for 01-2014

The balance of the 770000 - Salaries Expense account is broken down by subaccounts.

Similarly, you can review the detailed trial balance for EAST. Along with the detailed trialbalance, you can also use the Account by Subaccount form (GL403000; Finance > GeneralLedger > Work Area > Explore) to analyze the account balance and turnover by subaccounts forthe selected account and branch. Also, you can customize the profit and loss analytical reports toview the figures broken down by the needed subaccounts.

| Lesson 13: Combined Subaccounts in Documents | 66

Lesson 13: Combined Subaccounts in DocumentsYou can use automatically combined subaccounts for Accounts Payable and Accounts Receivabledocuments to speed up data entry and reduce possible errors. The system can compose a subaccountfrom source segments specified on the Accounts Payable Preferences form (AP101000) or AccountsReceivable form (AR101000) respectively.

To use automatically combined subaccounts in documents, you have to specify the combinedsubaccount mask for the Accounts Receivable and Accounts Payable modules, and initialize thesubaccount for the source records of the segments.

On the Accounts Receivable Preferences form (AR101000), the combined subaccount mask is specifiedin 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 vendorrecord 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 salessubaccount or the vendor's expense subaccount into a document. Suppose that you want to combinethe sales subaccount in Accounts Receivable documents by using another rule: the first two segmentsshould be taken from the non-stock item that is selected in a document line (if any), and the lastsegment should be taken from the customer account. Therefore, you need to specify III-II-LL in theCombine Sales Sub. box on the Accounts Receivable Preferences form (AR101000). You also need tospecify 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 AccountsReceivable documents. In the example presented in this lesson, you will use the combined subaccountthat is composed from segments taken from the non-stock item selected in a document line and fromthe 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 segmentsof the combined subaccount will be taken from the non-stock item (III-II in the mask), and thethird 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-00sales 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 C000000086 customer (YY Studio), enter 000-00-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 C000000086customer and specify the following settings:

• Type: Invoice


• Customer: C000000086 (YY Studio)

• Terms: 30D

• Date: 1/20/2014


• Description: Support and consulting services

5. 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 canchange this subaccount, if needed). The system has composed the sales subaccount accordingto the subaccount mask specified on the Accounts Receivable Preferences form (AR101000). Thefirst two segments of the combined subaccount are taken from the non-stock item (III-II in themask), 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 thatthe 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 specifiedfor the customer (if any).

The invoice details with automatically combined subaccounts

Branch InventoryID

Ext. Price Account Description Subaccount

SOFT SUPPORT 150.00 403000 Sales -ConsultingServices

000-SU-CA

SOFT CONSULT 250.00 403000 Sales -ConsultingServices

000-CO-CA

SOFT [N/A] 50.00 403000 Sales -ConsultingServices

000-00-CA

7. Release the invoice, and review the balance of the 403000 account broken down by subaccountsby using the Trial Balance Detailed report (GL632500; Finance > General Ledger > Reports >Balance) for the SOFT branch for 01-2014 (as shown in the following screenshot).


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 toinitialize both the expense account and expense subaccount for vendors to make the expense subaccountcombined in Accounts Payable documents.

Related LinksCombined Subaccounts

http://partner.acumatica.com/Main.aspx?CompanyID=USA&ScreenId=WP000000&PageID=bb40d7e2-35d7-4565-8101-12d7cd166429



• How can you configure subaccounts in the system?

• How can you make the system combine expense subaccounts in the lines of Accounts Payabledocuments?

• How can you make the system combine sales subaccounts in the lines of Accounts Receivabledocuments?

• What does it mean when the On-the-Fly Entry check box is selected for the SUBACCOUNTsegmented key?

Take the Test

Now take the online test Certification Test 3: Income and Expense Classification by Subaccount atAcumatica University.

| 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 2014.In the first lesson of the part, you will learn how to configure the budget tree, and how to preload andrelease budget articles. You will also learn to update and distribute budget articles. In the second lessonof the part, you will learn to distribute amounts between general ledger accounts by using differentallocation rules.

After you complete the lessons of this part, you will have the annual budgets prepared for bothcompanies. You will also have three different allocation rules configured.


| Company Story: Budgets and Allocations | 71

Company Story: Budgets and AllocationsThe companies want to keep their budgets in the system. Also, the accountants want to know how theycan automate the allocation of amounts between general ledger accounts, because they perform regularallocations 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 ledgertransactions in 2013.

• 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 GLaccounts.

| Lesson 14: Budgets | 72

Lesson 14: BudgetsIn the system, you can prepare annual budgets by branch. To be able to create budgets, you have toconfigure the budget tree and create a budget ledger. The budget tree is common for all branches. Itdefines 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 canprepare the budget for one of the branches and then compare the budget figures with the actual figuresconsolidated by all branches of the company by using an analytical report. You can manually add morearticles to the budget, if needed.

We recommend that you define the budget tree because it makes easier to prepare budgets and analyzethem. However, you can work with plain budgets, which are plain lists of budget articles, without thepreliminary configuration of the budget tree.

If you use the Purchase Requisitions module of the Distribution suite to process requests for goods andservices, you can configure the budget verification of the purchase requests to make the system warn youif 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 2014.For Software Inc., you will build the budget from the account balances for 2013. For Computers Inc.,you will import an earlier calculated budget from an Excel file. Thus, you will perform the followingsteps:

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 structuretree, 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 thescreenshot 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, SubaccountMask: ???-00-00

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 thatcan be added to this node. When you create a budget, you can preload articles to this node bythe mask. Therefore, you don't necessarily have to define a leaf for every single article in thebudget tree. Instead, you can use the account and subaccount mask for a node to define thegroup of leaves that can be added to the budget.

We recommend that you keep the general structure of the budget tree by defining the top-level grouping nodes and specifying the account and subaccount masks for them. The generalstructure makes the budget tree flexible so that you can preload the needed articles whilepreparing a certain budget. When you create a budget, the system automatically adds the nodes


and the articles to the budget according to the preconfigured budget tree. Once an article hasbeen preloaded from the budget tree, it cannot be removed from the budget, but you can addmore 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 allpossible budget articles that can be grouped under this node, leave the account and subaccountmask 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 AccountMask

SubaccountMask

Cleared 610000 000-00-00 AdvertisingExpense

610000 000-00-00

You have to specify the account-subaccount pair and account-subaccount mask for eachleaf in the budget tree. The account and subaccount of the leaf are the ones to which thebudget amount is recorded in the system. The account mask and the subaccount maskdefine 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 officesupplies expenses and the repair and maintenance expenses. Because the particularamounts are small, the users generally want to have just one budget article for all ofthem.

If you want to calculate a budget article from the total of a group of account-subaccountpairs, you have to specify the account and subaccount mask of the group in the leaf. Bythe mask, the system aggregates the historical data under one article when it calculatesthe budget from history or when calculates the amounts for comparison by using theBudgets form (GL302010). In the chart of accounts, you have the 755000 - OfficeSupplies Expense and the 758000 - Repair & Maintenance Expense accounts that youwant 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 possiblesubaccounts, you use the ???-??-?? expression for the subaccount.

Office expense budget leaf

Node Account Subaccount Description AccountMask

SubaccountMask

Cleared 755000 000-00-00 Office Expense 75???? ???-??-??

3. On the Budget Tree pane, select the Salaries node and click Preload Accounts on the toolbar.Preload the budget leaves from the 770000 - Salaries Expense account by the ???-00-00subaccount mask:

• Account from: 770000

• Account to: 770000

• Subaccount Mask: ???-00-00

The system automatically populates the budget tree with all the possible subaccountcombinations that match the specified mask.

4. From the Salaries node, remove the generated leaf for 000-00-00 because you are not going topost transactions, and keep the budget for the 770000/000-00-00 account-subaccount pair.


5. Make the description of the salaries budget leaves more informative:

• Account: 770000, Subaccount: ADM-00-00, Description: Salaries - Administration

• Account: 770000, Subaccount: CON-00-00, Description: Salaries - Consulting Department

• Account: 770000, Subaccount: DEV-00-00, Description: Salaries - Developers

• Account: 770000, 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 workwith budget articles by using the table view of the Budgets form (GL302010; Finance > GeneralLedger > Work Area > Enter).

6. Select the Sales node and click Preload Accounts on the toolbar. Preload the budget leaves fromthe 403000 - Sales - Consulting Services account with the subaccount mask 000-??-00:

• Account from: 403000

• Account to: 403000

• Subaccount Mask: 000-??-00

7. Remove the generated leaf for 000-00-00 because you are not going to post transactions, andkeep the budget for the 403000/000-00-00 account-subaccount pair.

8. For each sales budget leaf, change the last segment of the subaccount mask to ?? to makethe system aggregate the amounts that are posted with different last segment values ofthe subaccount under this single budget article, because the management does not want tokeep separate budget articles for sales to different regions. Also, make the description moreinformative so that you have the following sales budget leaves:

• Account: 403000, Subaccount: 000-CO-00, Description: Sales - Consulting, Account Mask:403000, Subaccount Mask: 000-CO-??

• Account: 403000, Subaccount: 000-CU-00, Description: Sales - Customization, AccountMask: 403000, Subaccount Mask: 000-CU-??

• Account: 403000, Subaccount: 000-SU-00, Description: Sales - Support, Account Mask:403000, Subaccount Mask: 000-SU-??

• Account: 403000, Subaccount: 000-TR-00, Description: Sales - Training, Account Mask:403000, Subaccount Mask: 000-TR-??

The 403000 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 403000/000-CO-00,403000/000-CO-CA, and 403000/000-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 asshown in the following screenshot.

Figure: Root nodes and leaves of the configured budget tree


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 budgetledgers. To a budget ledger, you can post annual budgets of different branches. To prepare two differentbudgets 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), reviewthe budget ledger that has been preconfigured for the training. (The BUDGET ledger has beenpreconfigured 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 createa 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 thebudget with budget articles according to the budget tree configuration and shows the notificationmessage about that.

2. For 2014, prepare an optimistic budget of a 10% increase over the actual figures of the companyfor 2013 as follows:

a. Click Preload Articles on the toolbar and select the following parameters at step 1 of thewizard:

• Branch: SOFT

• Ledger: ACTUALSOFT


• 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 calculatethe amounts for only articles listed in the table, and click Finish.


The system calculates the budget for 2014 as a 10% increase over the actual figuresfor 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 forthe article in the budget tree. Thus, the administration salaries budget, which has theADM-00-00 subaccount mask in the budget tree, is calculated from the total amountposted to the 770000 account with the ADM-00-00 subaccount. The consulting salesbudget, which has the 000-CO-?? subaccount mask in the budget tree, is calculated fromthe total amount posted to the 403000 account with different subaccounts that match themask, such as 000-CO-CA and 000-CO-DC.

The office expense budget article has been calculated as a 10% increase over the totaloffice supplies expense and repair and maintenance expense from each period of 2013.

In the table, the Amount column shows the planned annual budget amount of everyarticle in the budget. The Distributed Amount box shows the total budget amountdistributed by financial periods. In each row in the table, the Amount must equal theDistributed Amount; otherwise, you cannot release the budget article. If the amountsdiffer, 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 thefollowing screenshot).

Figure: Preloading articles for the Rent & Utilities node

b. At step 1 of the wizard, leave the parameters from which the other budget articleshave been already built, and click Next.

c. At step 2 of the wizard, review the account range and the account mask that havebeen 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 740000 and 745000 accounts to the budget.

f. Switch to table view and compare the budget for 2014 with the actual figures for 2013.Select the following parameters in the budget summary:

• Compare To Branch: SOFT

• Compare To Ledger: ACTUALSOFT

• Compare To Year: 2013


As soon as you have selected the year, the system shows the figures for this year undereach budget article. For example, for the Sales - Consulting budget article, you can seethat $368,500 is budgeted, with 10% increase over the $335,000 actual for 2013.

To hide the compared figures, clear the Compare to Year box and press Enter.


Figure: Budget 2014 for the SOFT branch


3. 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 thebudget article. After release, the budget amounts are available for reports and for comparisonwith actual figures or other budgets by using the Budgets form (GL302010). On this form, youcan 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 budgetledger, or roll back the changes in the budget.

You can configure user access rights so that only authorized users can view, edit, and release allbudget 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 budgettree, nodes can represent, for example, company departments; thus, you are able to give theusers access rights by department to the budget articles by granting the access rights for thecorresponding budget nodes.

To configure access rights to budget articles, you have to configure user access rights to budgetnodes and articles, and then prepare budgets. Notice that user access rights apply to newlyconfigured 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 > GeneralLedger > Reports > Financial Statements) for 01-2014, which has been specially designed forthe course to show the actual and budget figures of each of the companies.

Figure: Profit and Loss Budget Performance report for 01-2014

4. 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 asfollows:

1. On the Budgets form (GL302010), switch to table view and create a budget with the followingparameters:

• Branch: WEST (you can select either branch of the company)

• Ledger: BUDGET



2. On the table toolbar, click Load Records from File and select the provided BudgetWEST2014.xlsxfile. In the wizard, leave the null value empty and map the columns as the system suggests. Thesystem uploads the budget articles from the Excel file (see the following screenshot).


Figure: Budget 2014 for WEST preloaded from the Excel file


In the Excel file, you have to create a row for each budget article. The articles must match thebudget tree that you have configured on the Budget Configuration form (GL205000). From thefile, 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 thefollowing:

a. Open the WEST budget for 2014 on the Budgets form (GL302010).

b. For the 403000/000-CO-00 Sales - Consulting article, change the Amount to$220,000.00.

You can update the budget for particular periods, but the total budget by periods mustequal the annual budget. Therefore, you have to distribute the updated annual amountbetween the periods of 2014.

5. Distribute the updated Sales - Consulting budget in the same proportions as the amount isdistributed 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 403000/000-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, ordistribute 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 theSales - Consulting article in the same proportions as the amount of the same articleis distributed among the financial periods in the released budget. Thus, the updatedconsulting sales budget for 01-2014 is $18,260.00, which is 8.3% of $220,000 annual. Byusing the amounts from the compared released budget, 8.3% of $200,000 is $16,600.

6. Switch to table view, and add the bank charges expense article to the table with the followingsettings:

• Account: 620000 (Bank Service Charges)


• Amount: 1500.00

When you add an article in the table view of the budget, it is added to the root node. Whenyou preload a budget article by using the wizard or import an article from an Excel file, it isautomatically placed under the grouping node that matches the article by the account andsubaccount 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. Theresulting budget is shown on the screenshot below.


Figure: Resulting budget 2014 for the WEST branch


The updated budget article and the new one aren't available in the reports yet. (Review theProfit and Loss Budget Performance analytical report for 01-2014). You have to release theupdated 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 budgetfor 2014.

9. Review the Profit and Loss Budget Performance analytical report for 01-2014 and check that theWEST budget articles have been updated. For Computers Inc., the new bank service expensearticle has appeared in the report and shows the $125 amount budgeted for January 2014. Thecompany's consulting services sales budget has also been updated to $18,260 for January 2014.

Figure: Updated Profit and Loss Budget Performance report

Related LinksOverview of BudgetsBudget Verification ConfigurationOverview of Restriction Groups

http://partner.acumatica.com/Main.aspx?CompanyID=USA&ScreenId=WP000000&PageID=5955dd68-7b94-4e1b-aff0-ea3cb9215653

http://partner.acumatica.com/Main.aspx?CompanyID=USA&ScreenId=WP000000&PageID=c3d9f0cf-db1c-4ff7-8803-41557c337ae5

http://partner.acumatica.com/Main.aspx?CompanyID=USA&ScreenId=WP000000&PageID=ad9a42c1-ff5d-4298-86d9-683039c18512

| Lesson 15: Allocations | 85

Lesson 15: AllocationsSuppose that for faster and easier data entry, a user specifies some expenses in bills to one accountor subaccount instead of splitting these expenses by different accounts or subaccounts. Then, on aregular basis, the user runs a general ledger allocation that distributes the expense amounts betweenthe needed accounts and subaccounts.

Allocations can be done only between account-subaccount pairs of branches that post to the sameledger. To distribute the amounts, the user has to construct an allocation rule that specifies theaccounts (and subaccounts) and the distribution ratio. When the user runs the allocation rule, thesystem generates an allocation batch that deducts the amounts from one account and posts thedistributed amounts to another account according to the allocation rule.

The amounts to be deducted are calculated from the source accounts from the source ledger. Theamounts can be calculated as the account period to date (PTD) balance or the amount accumulatedsince the previous allocation. In the allocation batch, the amounts are deducted from the sourceaccounts 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 sourceaccounts but deducted from the contra accounts instead of the source accounts. The amounts arededucted in the allocation ledger.

The deducted amounts are distributed and posted to the destination accounts in proportions specifiedby the allocation ratio. The distributed amounts are posted in the allocation ledger. The allocation ratiocan 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 thedestination accounts if the base accounts are not specified. In either case, the ratio is calculated fromthe 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 regularlyat the end of every financial period so that the amounts are automatically and accurately distributedbetween 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 accountbalances

4. Allocating amounts between subaccounts by using a dynamic ratio of the budget amounts forthese subaccounts

1. Preparing Account Balances for Allocations

Before you start to make allocations, perform the following steps to prepare the balances of accountsthat you are going to use:

• Make sure that you have the following ending balances of account/subaccount pairs for 01-2014:

• WEST: 770000/ADM-00-00, $4000

• WEST: 770000/CON-00-00, $2000

• EAST: 770000/ADM-00-00, $1000

To do this, on the Account by Subaccount form (GL401000; Finance > General Ledger > WorkArea > Explore), review the balance of the 770000 - Salaries Expense account for the WEST andEAST branches for 01-2014.

You can proceed with account balances other than the listed ones; in this case, your allocationbatches will differ from the ones described in the allocation examples of this lesson.


• Make a batch for the $2000 payment for the utilities in the Western office of the Computerscompany to prepare the account balances. You are going to have one record: for the 000-00-00subaccount in the 745000 - Utilities Expense account, with a $2000 ending balance for 01-2014.To do this, on the Journal Transactions form (GL301000), create and release a batch with thefollowing settings and journal entries:

• Branch: WEST

• Ledger: ACTUALCOMP



• Description: Payment for utilities

• Debit entry: WEST, 745000 (Utilities Expense), 000-00-00, 2000.00

• Credit entry: WEST, 102000 (Checking Account), 000-00-00, 2000.00

On the Account by Subaccount form (GL403000), review the 745000 - Utilities Expense accountbalance for the WEST branch for 01-2014. Make sure there is one record for the account/subaccount 745000/000-00-00 with an ending balance of $2000 for 01-2014. Otherwise, theallocation 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 branchbetween the WEST and EAST branches with the ratio of 3 to 1. Proceed as follows:


2. On the Allocations form (GL204500; Finance > General Ledger > Work Area > Manage), createan allocation rule with the following parameters:

• Allocation ID: [Leave blank (inserted automatically when you save)]

• Description: Administration salaries by weight

• Branch: WEST

• Start Period: 01-2014

• End Period: 12-2014

• 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 bydefault]

Start Period and End Period specify the range of financial periods for which the allocation definedby this rule can be executed. To be able to use the allocation rule for every period of the 2014year, you have specified 01-2014 as the Start Period and 12-2014 as the End Period. To use theallocation rule in the selected financial periods of every year, you can select the Recurring checkbox. In the example of this course, you want to use the allocation rule only in 2014; therefore,you have cleared the check box.


The source ledger is the ledger from which the amounts to be allocated are calculated by theaccount or accounts specified on the Source Accounts tab. The allocation ledger is the ledger inwhich the amounts are distributed.

3. On the Source Accounts tab, specify the source account from which the allocated amount will bededucted.

The source branch, account, and subaccount of the allocation

Branch Account Subaccount ContraAccount

ContraSubaccount

AmountLimit

PercentageLimit

WEST 770000 ADM-00-00 100.00

4. On the Destination Accounts tab, add the account-subaccount pairs for two branches to whichthe 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 770000 ADM-00-00 3.00

EAST 770000 ADM-00-00 1.00

If you use the By Percent distribution method, the total percent must be 100. If you the By Weightdistribution 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 01-2014 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 3to 1 for 01-2014.


3. 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 thesalaries of the administrative staff between the company branches in proportions to the salaries of theconsultant staff in these branches. Perform the following steps:


2. By using the Account by Subaccount form (GL403000), review the balance of the 770000account by subaccounts and branches of the Computers company for 01-2014.

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:


• Description: Administration salaries by consult. salaries PTD

• Branch: WEST





• Distribution Method: By Dest. Account PTD



• Base Ledger: [Leave empty]

The base ledger is the ledger from which the allocation proportions are calculated. You cantake the proportions from a ledger of any type (actual, budget, or statistical). To calculate theproportions, the system takes the amounts from base accounts specified on the DestinationAccounts tab. If the Base Ledger box is empty, the system calculates the proportions from theamounts in the allocation ledger.

4. On the Source Accounts tab, specify the source account from which the allocated amount will bededucted:



ContraSubaccount

AmountLimit

PercentageLimit

WEST 770000 ADM-00-00 100.00

5. On the Destination Accounts tab, add the account/subaccount pairs for the branches to whichthe allocated amount should be distributed proportionally to the amounts on the base branch,base account and base subaccount.


Branch Account Subaccount Base Branch BaseAccount

BaseSubaccount

WEST 770000 ADM-00-00 770000 CON-00-00

EAST 770000 ADM-00-00 770000 CON-00-00


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 forthe 01-2014 period and the 1/31/2014 allocation date.


Figure: The allocation transaction distributing amounts in proportion of the consultant salaries

The amounts are distributed with the ratio of 0.6666... to 0.333..., which comes from $2000 :$1000 ratio of the amounts with the CON-00-00 subaccount for the WEST and EAST branchesrespectively.

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 inproportions of the total rent and utilities budget articles for 01-2014:


2. On the Allocations form (GL204500), create an allocation rule with the following parameters:


• Description: Utilities expense by budget

• Branch: WEST





• Distribution Method: By Dest. Account PTD



• Base Ledger: BUDGET

This example uses the preconfigured BUDGET ledger of the Computers company.


3. On the Source Accounts tab, specify the source account from which the allocated amount willbe deducted, as shown in the following table. (You are making the allocation rule for only theWestern office of the Computers company; therefore, you specify only the WEST branch in therule.)



ContraSubaccount

AmountLimit

PercentageLimit

WEST 745000 ???-??-?? 100.00

The ???-??-?? subaccount mask specifies the allocation of the total amount posted to the accountand branch with any subaccount.

4. On the Destination Accounts tab, add the account/subaccount pairs to which the allocatedamount should be distributed proportionally to the amounts on the base branch, base accountand base subaccount. The allocation proportions will be calculated from the total period-to-dateamount of the utilities and rent budget articles.


Branch Account Subaccount BaseBranch

Base Account BaseSubaccount

WEST 745000 ADM-00-00 740000 ADM-00-00

WEST 745000 CON-00-00 740000 CON-00-00

WEST 745000 DEV-00-00 740000 DEV-00-00

WEST 745000 SAL-00-00 740000 SAL-00-00

You can also use masks to aggregate the amounts on the source or base accounts and subaccountsin the allocation rules.

5. Save the created allocation rule.

6. By using the Run Allocations form (GL504500), run the allocation for the 01-2014 period and the1/31/2014 allocation date.



Figure: The allocation transaction distributing amounts in proportion to the budget articles

In the batch, the actual amount on the Utilities Expense account (745000/000-00-00) has beendistributed by subaccounts in proportions of the rent and utilities budget article posted to the740000 account in the budget of the Computers company. The Computers budget amounts inthe 740000 account by the ADM, CON, DEV, and SAL subaccounts for the 01-2014 period are$583.34, $1250, $1416.67, and $1250 respectively and have the ratio of 0.1296.. to 0.2777...to 0.3148... to 0.2777... (the weights are calculated with high precision). In the allocation batch,the $2000 amount has been split into the $259.26 : $555.55 : $629.64 : $555.55 amounts bythe respective subaccounts.

If there is a small rounding difference in an allocation batch, the system adds the difference to thegreatest amount among the journal entries of the batch.



• 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.

| 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 andunrecognized payments. Also, you will import the bank statement for one of the cash accounts tomatch the transactions in the bank statement with the transactions in the system and perform the bankreconciliation of the cash account.


| Company Story: Cash Management | 94

Company Story: Cash ManagementThe companies want to execute their cash management tasks in the system—that is, execute thefollowing tasks: process the deposits of customer payments to bank accounts, and perform the bankreconciliation for companies' checking accounts. Also, the companies want an easier way of processingunrecognized payments.

The companies use the following cash accounts, which are configured in the system:

• 102000-SOFT: The checking account of the Software Inc. company

• 102000-COMP: The checking account of the Computers Inc. company

• 101000-COMP: The petty cash account of the Computers Inc. company

• 101000-SOFT: The petty cash account of the Software Inc. company

In our simplified examples, the accountant of the Computers Inc. headquarters can manage all cashaccounts, process transactions to and from them, perform the bank reconciliation, and process the bankdeposits 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 learnthe bank deposit processing and the processing of unrecognized payments by using the Computerscompany's checking account (the 102000-COMP cash account in the system). When you process bankdeposits and unrecognized payments, the payments are first recorded to a clearing account, and thenmoved to the destination account. Since both companies use the same currency, they can use oneclearing account for processing bank deposits and one clearing account for processing unrecognizedpayments for all checking accounts.

Your last task of this part is to learn the process of bank statement import and bank reconciliationthrough the example of bank reconciliation for the Software company's checking account (the 102000-SOFT cash account in the system).

| Lesson 16: Bank Deposits | 95

Lesson 16: Bank DepositsSuppose that you receive payment checks from customers and deposit them in a batch to your bankaccount. In the bank statement, these checks will appear as a single deposit in the cash account. Itis easier to reconcile a bank deposit transaction in the cash account with the bank statement than toreconcile multiple Accounts Receivable payment transactions in the account.

Consider the following example of processing customer payments of $100 and $200 that you thendeposit to the bank account.

First you process the AR payments to the clearing account (asset account). The system generates thefollowing 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 cashaccount. 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 cashaccount instead of two payment transactions (one of $100 and one of $200). One $300 transaction canbe 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 processthe bank deposits to the cash accounts in the system. Suppose that you have received three paymentsfrom customers: a $2000 check from Jevy Computers (received on 1/1/2014), $1100 in cash fromBrass Key Bar (received on 1/15/2014), and a $3000 check from Silver Springs Water (also received on1/15/2014). In the first example, you will make a simple deposit of customer payments to the checkingaccount of the company on 1/15/2014. The second example of the lesson (which corresponds to thefourth task of the lesson) is optional: It explains how to process a bank deposit with automaticallycalculated 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 forthe cash account to which you need to process bank deposits. To configure the accounts, proceed asfollows:

1. Create the 102010-COMP clearing cash account and configure the 102000-COMP checkingaccount for bank deposit processing:


a. On the Chart Of Accounts form (GL202500; Finance > General Ledger > Configuration> Manage), create the 102010 - Undeposited Payments asset account with the followingsettings:

• Account: 102010

• Account Class: CASHASSET

• Type: Asset

• Active: Selected

• Description: Undeposited Payments

b. On the Cash Accounts form (CA202000; Finance > Cash Management > Work Area >Manage), create the 102010-COMP clearing cash account, for use for both companies,with the following settings:


• Account: 102010 - Undeposited Payments

• Cash Subaccount: 000-00-00

• Branch: WEST

• Description: Undeposited Payments

• Clearing Account: Selected


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 102010-COMP clearing account will be used for payments to be deposited to just one cashaccount: 102000-COMP.

c. Specify the 102010-COMP clearing account as the allowed cash account for the CHECKand 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 AllowedCash 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.

d. Do the following to specify the clearing account for the 102000-COMP - Checking Account,to which you will deposit funds:

a. On the Cash Accounts form (CA202000), select the 102000-COMP cash account.

b. On the Clearing Accounts tab, add the 102010-COMP account to the list, and savethe changes.

For a cash account, you have to specify the clearing account (or accounts) fromwhich the payments can be deposited to the cash account. Thus, you havespecified the 102010-COMP clearing account to be able to deposit funds from the102010-COMP clearing account to the 102000-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.


• On the Payments and Applications form (AR302000; Finance > Accounts Receivable > Work Area> Enter), create and release the customer payments to be deposited to the 102000-COMP -Checking Account:

1. The $2000 check from Jevy Computers (C000000003), which should have the followingsettings:

• Type: Payment

• Customer: C000000003 (Jevy Computers)



• Payment Ref.: 01012014J


• Cash Account: 102010-COMP (Undeposited Payments)

• Deposit After: 1/1/2014

• Description: Payment


2. The $1100 in cash from Brass Key Bar (C000000051), which should have the followingsettings:

• Type: Payment

• Customer: C000000051 (Brass Key Bar)

• Payment Method: CASH


• Payment Ref.: 01152014B






3. The $3000 check from Silver Springs Water (C000000053), which should have thefollowing settings:

• Type: Payment

• Customer: C000000053 (Silver Springs Water)



• Payment Ref.: 01152014S




• Description: Payment, postdated check



The amounts are posted to the 102010-COMP clearing account, from which they can be depositedto the 102000-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 102000-COMP checking account. Do thefollowing 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: 102000-COMP - Checking Account

• Document Ref.: 01152014

• Deposit Date: 1/15/2014

• Fin. Period: 01-2014

• 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 on1/15/2014: 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 accountsspecified for the cash account and that have a Deposit After date no later than the EndDate, which is 1/15/2014. The $3000 Silver Springs Water payment can be depositedafter 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 columnto 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 todo 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 thePayments and Applications form (AR302000), you can also view the information aboutthe bank deposit to which the payment has been added in the Batch Deposit Date and theBatch 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 furtherprocessing. The Deposit Total is the total of payments added to the deposit, and the TotalAmount is the Deposit Total minus the Charge Total (if any). You are going to depositfunds without processing the bank charges right now. To process bank charges that canbe taken for deposited checks, you can specify the bank charge amount in the depositor process the charges later (as soon as they appear in the bank statement for the cashaccount to which you deposit the funds). For this sample deposit, assume that you don'tknow the charges and you have decided to process them later.

g. Release the bank deposit and review the generated batch (shown in the followingscreenshot).


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 102000-COMP cash accountand review the transactions in the account from 1/1/2014 to 1/31/2014 (see the followingscreenshot).

Figure: Cash transactions in the 102000-COMP account for 01-2014

The two payments that have been deposited to the cash account are represented as one CADeposit transaction, which is convenient for further reconciliation of the cash account withthe bank statement. The Receipt column displays the total amount of the deposit, $3100. Thepostdated check received on 1/15/2014 in the amount of $3000 is not displayed in the tablebecause it hasn't been deposited yet and remains on the 102010-COMP clearing account.

4. (Optional) Processing a Deposit with Automatically Calculated Bank Charges and anAdditional Cash Drop

This additional example, which demonstrates more techniques that you can use for bank depositprocessing, is not required for certification.

To process a bank deposit that includes automatically calculated bank charges and an additional cashdrop (that is, a particular amount of cash, which is deposited to reduce cash on hand) to the bankaccount, perform the following steps:


1. Configure the calculation of bank charges that depend on the payment method in deposits asfollows:

a. On the Cash Accounts form (CA202000), select the 102000-COMP cash account. Supposethat you know that a bank fee of 5% applies to every check that you deposit to the102000-COMP cash account.

To specify the charge rate, you have to specify the charge type and the charge rate foreach clearing account in the table on the Clearing Accounts tab of this form. The chargetype specifies the default account and subaccount to be used in the disbursement cashtransaction of the bank charge, which is generated on release of the bank deposit towhich the charge rate applies.

b. On the Clearing Accounts tab, specify the charge rate for the CHECK payment method sothat you have one record in the table (see the following image). This causes the systemto automatically calculate the bank charge when you deposit checks to the 102000-COMPcash account.

Figure: The charge rate for any checks to be deposited from the 102010-COMP clearing account tothe 102000-COMP cash account

You can specify different charge rates that apply to deposited payments depending onthe payment method. In the example above, you have specified the charge rate that willapply to payments with the CHECK payment method to be deposited from the 102010-COMP clearing account to the 102000-COMP account. The system will not apply thecharge rate to payments with another payment method when you add them to a bankdeposit in the system.

If you wanted to specify the charge rate for another payment method, you would add onemore 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 rowsin the table on the Clearing Accounts tab, as shown below.

To specify a charge rate that applies to deposited payments regardless of their paymentmethod, in the table on the Clearing Accounts tab, you would add a row for the clearingaccount, leave the Payment Method column empty and only select the Charges Type andspecify 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 $100from cash on hand to the bank to deposit these monies to the 102000-COMP checking account.Create and process the bank deposit in the system as follows:


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:


• Cash Account: 102000-COMP - Checking Account

• Document Ref.: 01312014




• 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 thedeposit.

For a particular date, you can review the payments that have been posted to clearingaccounts but haven't been deposited yet. To do this, run the Undeposited Payments(CA657000; Finance > Cash Management > Reports > Audit) report. The report showspayments grouped by clearing account.

e. On the Charges tab, review the bank charges that have been automatically calculated bythe system.

The system calculates the bank charge that applies to the deposit at the applicable chargerate specified for the 102000-COMP cash account. By using the specified 5% charge ratefor 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, asshown in the following screenshot. The total charge amount is displayed in the ChargeTotal box of the deposit summary. The Total Amount box shows the Deposits Total minusthe 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 101000-COMP cash account (in theexample presented in this course, no bank charges apply to deposited cash):

a. In the Cash Drop Account box in the summary area, select 101000-COMP Cash onHand of Computers Inc. account.

b. In the Cash Drop Amount box, specify 100.00.

c. Click Save.

Now the Total Amount of the deposit is the sum of the total payment amount andthe cash drop amount minus the bank charges: $3000 + $100 – $150 = $2950.

g. Release the bank deposit.

After release, you cannot edit the bank deposit. If you have released a deposit with apayment added to it by mistake but haven't sent the deposit to the bank yet—that is, ifthere is no such payment in the actual deposit—you can void the deposit, release the voided


deposit, and then create and process the new correct deposit. For more information onprocessing deposits, see the Related Links section.

3. On the Cash Account Transactions form (CA303000), select the 102000-COMP cash account andreview the transactions in the account from 1/1/2014 to 1/31/2014, as shown in the followingscreenshot.

Figure: Cash Account Transactions for the 102000-COMP account after release of the second deposit

Notice that for the second deposit, there is one CA Deposit transaction with the $2950 receiptamount, which is the deposit amount after the bank charges.

On the Bank Deposits form (CA305000) for the deposit, the Total Amount of the bank depositmay or may not include bank charges, which you define by using the Separate Chargescheck box on the Financial Details tab. In the example above, the Separate Charges checkbox is cleared. The screenshot below demonstrates the same transaction when the SeparateCharges check box is selected; notice that the charges are shown in a separate row. For easierreconciliation, 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 selectedin the bank deposit

Related LinksOverview of Deposits

http://partner.acumatica.com/Main.aspx?CompanyID=USA&ScreenId=WP000000&PageID=ed9a19db-f2c6-43fe-be72-fda63ca2b61f


Accounting for Finance Charges Applied to Payments

http://partner.acumatica.com/Main.aspx?CompanyID=USA&ScreenId=WP000000&PageID=f9f79d3a-e16c-405e-95e5-3579842404a8

| Lesson 17: Unrecognized Payments and Payment Reclassification | 104

Lesson 17: Unrecognized Payments and PaymentReclassification

You can process unrecognized AR and AP payments to a temporary account and reclassify them laterwhen the customer or vendor information becomes available.

When you process an unknown payment (for instance, for $900) and then reclassify it as a paymentfrom a particular customer, the system generates transactions as follows:

1. You initially process the unrecognized payment as a cash transaction to the temporary liabilityaccount. The system generates the following transaction on release of the unknown payment:

• Cash account Dr, $900

• Unrecognized payments account Cr, $900

2. Once you know the identity of the customer, you reclassify the payment as a payment froma particular customer. The system generates the following transaction on the release of thereclassified Accounts Receivable payment:

• Unrecognized payments account Dr, $900

• Accounts Receivable Cr, $900

3. After you have reclassified the payment, the system records the payment amount to theAccounts Receivable account for the customer.

If you reclassify an unknown payment as a payment from vendor, the system generates a vendorrefund document in the Accounts Payable module. You can review and edit this document on theChecks and Payments form (AP302000; Finance > Accounts Payable > Work Area > Enter). Toprocess the vendor refund in the system, you have to apply it against an open debit adjustmentor prepayment, depending on the reason for the refund. (You have to create and process theappropriate document in the system if it doesn't exist.) On release of the vendor refund that hasbeen reclassified from an unknown payment, the system generates the following transaction so thatthe 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 andmaking payment reclassification. You will process an unknown payment and then reclassify it once theinformation of the payment sender becomes available.

Suppose that while reviewing a bank statement for 1/15/2014 for the 102000-COMP cash account, theaccountant of the Computers Inc. company detects a wire transfer of $900, received on 1/13/2014, forwhich the accountant cannot identify the sender. The accountant processes the unknown payment inthe system to a temporary liability account. On 1/30/2014, the accountant discovers that the paymentwas made by the Boulder Couriers Denver customer. The accountant reclassifies the payment as anAccounts Receivable payment from the certain customer in the system, which results in the correctbalance 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 lessonsteps:

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 102000-COMP cash account, which will be used for the processing of unrecognizedpayments, as follows:

1. Create the 210000-COMP cash account, to which the amounts of unrecognized payments will berecorded temporarily, by doing the following:


a. On the Charts of Accounts form (GL202500; Finance > General Ledger > Configuration >Manage), create the 210000 - Unrecognized Payments liability account with the followingsettings:

• Account: 210000

• Account Class: OTHCURLIAB

• Type: Liability


• Description: Unrecognized Payments

b. On the Cash Accounts form (CA202000; Finance > Cash Management > Work Area >Manage), create the 210000-COMP - Unrecognized Payments cash account:


• Account: 210000 - Unrecognized Payments


• Branch: WEST

• Description: Unrecognized Payments


In most cases, you need only one cash account for recording unknown payments fora group of cash accounts in the same currency, including cash accounts of differentbranches. However, if you have cash accounts with visibility restricted to the branch, youhave to create dedicated accounts to record unknown payments made to each branch andrestrict 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 210000-COMP cash account, you have to specify the payment methods that canbe used with the cash account. Wire transfers are represented by the WIRE paymentmethod in the system. The 210000-COMP cash account will be used to record unknownpayments 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 forunknown 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: 210000-COMP

After you select the Reclassification Account, the system automatically inserts the default offsetaccount, subaccount and branch into the entry type.

3. On the Cash Accounts form (CA202000), select the 102000-COMP cash account. On the EntryTypes tab, add the UNRECPMT entry type to the table and save the changes. This allows the useof this entry type for the account.


2. Creating an Unrecognized Payment

On the Transactions form (CA304000; Finance > Cash Management> Work Area > Enter), select theWEST branch as the current branch from which the transaction will originate, and create and releasethe cash transaction of the $900 unrecognized payment with the following settings:

• Tran. Type: Cash Entry

• Cash Account: 102000-COMP - Checking Account of Computers Inc. (here you specify the bankaccount to which the unknown payment was received)

• Entry Type: UNRECPMT (Unrecognized Payments)

• Document Ref.: 01132014UP

• Tran. Date: 1/13/2014


• Description: Unrecognized payment

• Transaction Details, Amount: 900.00, Offset Cash Account: 210000-COMP (UnrecognizedPayments), Offset Subaccount: 000-00-00

Upon release, the amount of the unknown payment has been posted to the 210000-COMP temporarycash account. At the same time, you can see the unknown payment transaction for the 102000-COMPaccount by using the Cash Account Transactions form (CA303000; Finance > Cash Management > WorkArea > 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 210000-COMP - Unrecognized Payments to review the transactions in thetemporary account.

3. Reclassifying the Unrecognized Payment

Perform the following instructions to reclassify the payment as being from the Boulder Couriers Denvercustomer:

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, andUNRECPMT as the Entry Type.

You can specify the default entry type that is automatically selected on this form. To do this, onthe Cash Management Preferences form (CA101000; Finance > Cash Management > Configuration> Setup), in the Unrecognized Receipts Type box, select the entry type you have configured forunknown payments.

2. In the table, select the $900 unknown payment, and specify the customer information for it:

• Module: AR

• Customer/Vendor ID: C000000059 (Boulder Couriers Denver)

3. On the form toolbar, click Process to reclassify the payment and make the system generate theAccounts Receivable payment from it.

4. On the form toolbar, click View Resulting Document to review the generated Accounts Receivablepayment 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 ofthe reclassified payment (which is the customer payment in Accounts Receivable or the vendorrefund in Accounts Payable).

5. Release the payment.


The system decreases the customer balance and decreases the AR account balance in theamount of the released payment.

6. On the Cash Account Transactions form (CA303000), select the 210000-COMP - UnrecognizedPayments cash account from 1/1/2014 to 1/31/2014 (see the following screenshot).

Figure: Transactions on the 210000-COMP account for 01-2014

You can see the transaction for the unknown payment and the transaction for the reclassifiedpayment. The ending balance of the account should be zero.

| Lesson 18: Bank Reconciliation | 108

Lesson 18: Bank ReconciliationThe 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, youcan 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 theProcess Bank Transactions form (CA306000).

Depending on how many transactions are processed, users can perform bank reconciliation as often asneeded, such as once a month or at the end of every week. In this lesson, you will learn to perform thebank 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:

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 thespecified information and to mark the transactions as Cleared for further reconciliation

3. Preparing the reconciliation statement of Cleared transactions for the bank statement period

In this lesson, you will import the bank statements for the 102000-SOFT checking account, match thetransactions 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 102000-SOFT cash account for uploading the bank statement from OFX

2. Reconciliation of the cash account transactions with the bank statement for January 2014

3. Optional: Reconciliation of the cash account transactions with the bank statement for February2014

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 102000-SOFTchecking account. You want to check whether all transactions have been accurately processed in thesystem and in the bank account so you can reconcile the bank statement balance of the account withthe 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 arealready provided for you in the training data for this lesson. (The procedure of importing outstandingchecks and deposits in transit is described in a further lesson in this course.)


Figure: Unreconciled transactions in the 102000-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 specificinformation (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 accountin the bank statement and specify the bank statement upload settings for the Cash Managementmodule:

1. Configure the 102000-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 102000-SOFT cash account, and specify the following settings, whichare required for import of bank statements from OFX:

• External Ref. Number: 001-204-00289-01 (the bank account number that isspecified 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 beingimported. PX.Objects.CA.OFXStatementReader is the service for importing bankstatements from OFX files.

b. Change the cash account description to MyBank 001-204-00289-01 checking a/cSoftware Inc..

2. On the Cash Management Preferences form (CA101000; Finance > Cash Management >Configuration > Setup), make sure that the Import Bank Statement to Single Cash Accountsetting is selected on the Bank Statement Settings tab.

If you import one statement or multiple statements for a single cash account from one OFX (orsimilar format) file into the system, you have to select the Import Bank Statement to SingleCash 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


Import Bank Statement to Single Cash Account check box and specify the Statement ImportService setting on the Cash Management Preferences form (CA101000).

For more information about the support for OFX and similar formats, see Support for OFX and RelatedFormats.

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 forJanuary 2014 as described in the following instructions:

1. Upload the 1/31/2014 bank statement for the 102000-SOFT cash account as follows:

a. On the Import Bank Transactions form (CA306500; Finance > Cash Management> WorkArea > Enter), select 102000-SOFT in the Cash Account box.

b. Click Upload File and select the provided BankStatement102000SOFT_01312014.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 MyBank001-204-00289-01 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 havebeen imported from the file. The imported transactions look as shown in the screenshotbelow.

Figure: The bank statement transactions

The uploaded OFX file becomes attached to the form, and you can download the file byusing Files on the form title bar.

c. In the Beginning Balance box, enter $123,800.00, which is the previous bank statementbalance as of 12/31/2013 (which has been imported into the system during the datamigration) and save the imported bank statement.

The OFX format doesn't provide the beginning balance in bank statements, so for thefirst imported bank statement, you have to manually specify the beginning balance of thestatement. In the next statements, the system uses as the Beginning Balance the EndingBalance 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 102000-SOFT cash account, as shown in the followingscreenshot.


Figure: Transactions of the 102000-SOFT account on the Process Bank Transactions form

On this form, you perform clearing of the documents. The left pane displays not-yet-processed transactions imported from bank statements. The bank transactions that havenot been matched to documents in the system are highlighted with bold. You need toreview these transactions.

The tabs on the right pane show possible matches for bank transactions; you can createdocuments based on the bank transactions. The Match to Payments tab shows thepayments that the system has evaluated as matching the transaction selected in thetable on the left pane. The Match to Invoices tab shows the invoices that the systemhas evaluated as matching the transaction selected in the table on the left pane. Onthe Create Payment tab, you can create a new document of the appropriate type fortransactions with no match.

b. On the form toolbar, click Auto Match to run the auto-matching process for the banktransactions. When you run the auto-matching process, the system searches for possiblematching payments and for documents to which the payment could apply. If no possiblematching payments or documents to apply are found in the system, the system suggeststhat you create a payment.

To find the matching payments for a bank transaction, the system filters the cash accounttransactions by the specified Match Settings and calculates the match relevance for thepossible candidates. The relevance shows how similar the bank transaction is to one cashaccount transaction or multiple transactions in the system. The transactions are comparedby three factors: the reference number, the transaction date (document date), and thepayee name (if any). The candidates with high relevance are recognized as the bestcandidates and matched automatically. In the following screenshot, you can see that forthe $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 couldmatch 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 to12/31/2013. Because the Match Relevance of the candidate is high (0.896), the systemhas determined that the entry is the best match for the deposit transaction from the bankstatement.


Figure: Auto-matched transaction for the $9000 deposit

The system also searches for outstanding documents. To find a document to which thepayment could apply, the system compares the payment amount with the amount of anyoutstanding documents with the same transaction sign (receipt or disbursement). Thus,for the receipt payment of $8500, the system has searched for open Accounts Receivabledocuments that have an open balance of exactly $8500. There are no such documents inthe 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 theCreate 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 statementtransaction until the transaction is matched and processed by running Process MatchedLines on the Process Bank Transactions form.

After the auto-matching process is done, the non-bold bank transactions becomeexcluded from the next run of the auto-matching process. To re-run the auto-matchingprocess for these transactions, click Clear Match for a certain transaction or click Clear AllMatches 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 anyexisting ones as follows:

a. You recognize the $8500 bank transaction as a payment received from the KammSystem France customer. It can be a partial payment for one of the customer'sinvoices. Proceed as follows to create the payment in the system and match thepayment 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 createthe payment in the system and apply the payment to the customer'soutstanding invoice:

• Create: Selected

• Module: AR

• Business Account: C000000083 - Kamm System France

• Payment Method: WIRE

• Invoice: INV000015, Amount Paid: 8500.00

The payment will be created during the processing of the matched lines onthe Process Bank Transactions form (CA306000).

c. Save the changes.


The $8500 payment is no longer marked with the sign because you havespecified the information from which the system will create the documentwhen 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 cashtransaction in the system:


• Module: CA

• Entry Type ID: BANKCHARGE

c. Save the changes.

The $50 bank service fee transaction is no longer marked with the signbecause you have specified the information from which the system willcreate the document when you run bank transaction processing.

d. To process the bank transactions in preparation for reconciliation, click Process MatchedLines on the form toolbar.

The system creates AR and AP payments with applications (if any), and cash transactionsbased on the specified information.

The system creates the documents and transactions based on the bank transactionsfor which you have specified the information, releases them, and selects the read-onlyCleared check box for every created document and transaction. Once processed, the banktransactions are excluded from future processing of matched lines and no longer appearon the Process Bank Transactions form (CA306000). The results of the bank transactionprocessing 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 forJanuary 2014, and review the transactions.

You can see that all transactions have been processed; for these transactions, theProcessed check box is selected. Find the cash transaction created from the $50 bankfee transaction in the Cash Management module, and make sure the transaction hasbeen released. Find the $8500 payment received from Kamm System France customerin the Accounts Receivable module. Make sure that the payment has been applied to thecustomer'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 > WorkArea > Enter), select the 102000-SOFT cash account.

b. Specify the following settings and save the reconciliation statement:

• Reconciliation Date: 1/31/2014

• Statement Balance: 131450.00

c. Select the Reconciled check box for the transactions that have the Cleared check boxselected.


Figure: Reconciled transactions in the reconciliation statement

You can select and clear the Cleared check box for transactions until they are involved inbank transaction processing on the Process Bank Transactions form (CA306000). Afteryou have processed a bank transaction, the Cleared check box is selected and read-onlyfor the corresponding document or transaction in the system. Therefore, once you haveprocessed all transactions from a bank statement, reconciliation with the bank statementbecomes easy: You select the Reconciled check box for all transactions that have theCleared check box selected in the reconciliation statement, and the bank reconciliation iscomplete.

The cash account balance in the system isn't affected by the result of the processing ofbank transactions.

The Reconciled Balance is equal to the Statement Balance and you can release thereconciliation statement.

d. Save and release the reconciliation statement.

As soon as you release the reconciliation statement, the system updates the lastreconciliation date, from which the next reconciliation statement will be calculated. Thereleased reconciliation statement contains only transactions selected for the statement,and these transactions don't show up for reconciliation in the next reconciliationstatements. The cash account balance in the system isn't affected by reconciliationstatements.

You can review the history of reconciliations for a certain cash account on the ReconciliationStatement History (CA302010; Finance > Cash Management > Work Area > Explore) form.

You can void a reconciliation statement that is incorrect. However, you can void andcorrect only the last reconciliation statement in a sequence. To correct an old reconciliationstatement, you have to void all reconciliation statements that have been released after theneeded one. For example, if it is necessary to correct the March reconciliation statementafter the April reconciliation statement has been released, you have to void both the Marchand April statements, correct and release the March reconciliation, and redo the Aprilreconciliation. When you void a reconciliation statement, the transactions still have theCleared 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 banktransactions; completion of this example is not required for certification.


1. To allow the use of the UNRECPMT entry type for the 102000-SOFT cash account, on the CashAccounts form (CA202000; Finance > Cash Management > Work Area > Manage), select the102000-SOFT cash account, and on the Entry Types tab, add the UNRECPMT entry type to thetable, and save the changes.

For the detailed steps on how to configure the cash accounts and the entry type for processingunrecognized payments, see Lesson 17: Unrecognized Payments and Payment Reclassification. Ifyou haven't done the lesson and have no UNRECPMT type already configured in the system, youcan continue with any receipt entry type.

2. On the Process Bank Transactions form (CA306000), select the 102000-SOFT account.

3. Upload the bank statement for February 2014 from theBankStatement102000SOFT_02282014.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). Ifyou import bank statements from OFX or similar formats, you can upload the bank statementsdirectly to the Process Bank Transactions form (CA306000), and the system will automaticallycreate the bank statement upload entry, which you can review on the Import Bank Transactionsform (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 uploadedtransactions, and click Save to save the process result.

No matching documents or transactions are found in the system; the system suggeststhat you create the documents based on the bank transactions.

After you have imported new bank transactions, we recommend that you always startworking with them by running the auto-matching process on the Process Bank Transactionsform (CA306000). New transactions for which you haven't run the auto-matching processyet are highlighted with bold. When you run the auto-matching process, the systemsearches for possible matches for the new transactions.

b. Process the $3205.71 receipt bank transaction with the 02012014 reference number.

The description of the bank transaction is empty. In such situations, you can look for theinformation in the Payee Name column, which is hidden by default. Do the following toadd 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 ColumnConfiguration button (the leftmost button at the table header), and in the ColumnConfiguration dialog, find Payee Name in the Available Columns list, move it to theSelected Columns list, and click OK. (See the following screenshot.)


Figure: The Payee Name column added to the table

When you upload the bank transactions from OFX or related formats, the payeeinformation can be imported in the Tran. Desc. (transaction description) or PayeeName field.

b. Find the payee name in the Payee Name column for the $3205.71 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 andhighlighted the bank transaction. The invoice has been found by amount: thetotal amount of the INV000017 invoice is equal to the amount of the payment,$3205.71, so that the bank transaction could be recognized as the full payment forthe invoice; find the invoice on the Match to Invoices tab.

The system doesn't match payments to invoices automatically. Therefore, afterthe system has found the invoice, the bank transaction remains highlighted withbold, which means it hasn't been matched to any document yet and is pending yourreview and decision.

c. To specify the settings to create the payment for the invoice in the system, add theTran. Code column to the table (by using the Column Configuration dialog) to findout the method by which the payment has been received.

You see the XFER transaction code, which you recognize as the code of wiretransfers.

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 theINV000017 invoice.

The bank transaction has been marked as matched in the left table. Whenyou process the bank transaction, the system will create the paymentbased on the specified settings and immediately apply it to the invoice. Thesystem will create the Westfield Co. payment made by the WIRE paymentmethod.


b. In the Payment Method box, select WIRE, which represents wire transfers inthe system.

c. Verify the customer in the Business Account field: It should be C000000087- Westfield Co., Ltd, taken from the invoice. Save your changes.

The system saves the matching results and the settings that you havespecified on the tabs of the right pane to create the payment for theINV000017 invoice based on the bank transaction.

c. Process the $700 receipt transaction with the 02102014WT 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 transactionas an unrecognized payment so that it can be classified later, when the information aboutthe 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 thesystem creates the cash transaction for the unrecognized payment:


• Module: CA (Cash Management)

• Entry Type ID: UNRECPMT

c. Save your changes.

The $700 payment is not matched yet but the sign no longer appears forthe transaction, which means that you have specified the settings to create thepayment in the system.

d. Proceed as follows to create a rule to apply to transactions such as the last two, which arefor the bank service charge:

You can define rules to generate cash transactions in the Cash Management modulebased on bank transactions that match the criteria you specify. In this case, you knowthat the bank charge transactions are usually not greater $100 and appear with theSRVCHG transaction code in the bank statement. Therefore, you will define a rule to createBANKCHARGE cash entries in the system from disbursement bank transactions that meetthese conditions.

a. In the table, select the $10 disbursement bank transaction with the 000000011reference number (MyBank Transfer fee #01132014WT).

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 thenewly 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


• Description: Blank (clear the description to make the system ignore thetransaction descriptions in this rule)

• Tran Code: SRVCHG

• Amount Matching Mode: Between


• Amount: 0.00

• Max. Amount: 100.00 (to create transactions for the bank fees that are nogreater than $100; if the amount is greater, you want to review them beforeprocessing)

In the Output section, specify BANKCHARGE in the Resulting Entry Type box, andsave the rule.

Figure: Bank transaction rule

The system will apply the defined rule during future runs of the auto-matchingprocess. Because you have already executed the auto-matching of the uploadedtransactions, you have to clear the matching results for the transactions for whichyou want to run the auto-matching again: the two bank fee transactions to whichyou want to apply the rule.

e. On the Process Bank Transactions form (CA306000), click Clear Match on the tabletoolbar for the 000000009 and 000000011 transactions, as shown in the followingscreenshot.

Figure: Auto-matching cleared for two transactions

f. On the form toolbar, click Auto Match.


The system has executed the auto-matching process for two transactions and hasapplied the MYBANKCHARGE rule to them. The applied rule is displayed on theCreate 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 thematched transaction in the system. For those transactions for which you have specified thesettings for creating cash transactions and accounts receivable payments in the system, thecorresponding documents have been created and released. Once a bank transaction has beensuccessfully processed, you cannot reverse the result and rematch the transaction differently.

6. Review the generated documents and make sure they are released. For the $3,205.71payment from Westfield Co., Ltd, make sure the payment has been automatically applied to theINV000017 invoice.

7. On the Reconciliation Statements form (CA302000), specify the following settings to prepareand release the reconciliation statement for 2/28/2014 (the previous reconciliation statement for1/31/2014 must be prepared and released by this time):


• Statement Balance: 135305.71

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 futurereconciliation.

Related LinksImport and Processing of Bank StatementsReconciliation Statements

http://partner.acumatica.com/Main.aspx?CompanyID=USA&ScreenId=WP000000&PageID=eecb3f5b-b62d-4abc-aeed-03e3b7b22219

http://partner.acumatica.com/Main.aspx?CompanyID=USA&ScreenId=WP000000&PageID=e7cd89e0-1651-4c5f-a5eb-34d51b7502f0

| Support for OFX and Related Formats | 120

Support for OFX and Related FormatsThis 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, anOFX file may contain one bank statement or multiple bank statements for the same cash account ormultiple cash accounts. The periods of transactions listed in the file must be in chronological orderand 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 bankstatements.

OFX versions 1.x and 2.x are supported; the file provided in this course complies with OFX 2.1.1. Theaccount currency that is specified in <CURDEF> in the OFX file must match the currency of the cashaccount in the system.

To import a single bank statement from an Excel file, you can upload the records directly to the table onthe Process Bank Transactions form (CA306000; Finance > Cash Management> Work Area > Enter). If youwant to import multiple bank statements from a single Excel file, you have to compose an import scenariofor bank statements and use the import scenario to import the bank statements into the Process BankTransactions form (CA306000) form.

The system supports import of bank transactions from the <STMTRS> and <CCSTMTRS> OFXaggregates. 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 amountis positive and as a disbursement if the amount is negative. The transaction type <TRNTYPE> isimported for informative purposes and doesn't affect the sign of the imported transaction. The tablebelow shows the transaction properties by which the system compares the imported bank transactionswith the transactions in the system.

Transaction comparison properties

Match Setting OFX <STMTTRN>Element

Acumatica ERP Documentsand Transactions

Imported BankTransaction

Ref. Nbr <CHECKNUM>,<REFNUM>, or <FITID>if the previous ones aremissing

Document Ref. (bank deposits,cash entries, and fundtransfers), Payment Ref. (APand AR payments)

Ext. Ref. Nbr.

Doc. Date <DTPOSTED> Deposit Date (bank deposits),Transaction Date (cash entriesand GL batches), Payment Date(AP and AP payments)

Tran. Date

Doc. Payee <PAYEE><NAME> or<STMTTRN><NAME>if <PAYEE><NAME> ismissing

Company Name of the vendoror customer account in AP andAR payments

Payee Name (hiddencolumn)

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>

| Support for OFX and Related Formats | 121

Imported Field OFX Element

Currency <CURDEF> if the Ignore Currency Check on Bank StatementImport check box is cleared; otherwise, the currency from thebank statement is ignored

| Comparison of Transactions by Factors and Match Relevance Calculation | 122

Comparison of Transactions by Factors and Match RelevanceCalculation

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 inthe system (see the screenshot below). This topic describes how the match candidates have been foundand 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 followingconditions:

• Whether the transaction amount in the system is equal to the transaction amount in the bankstatement

• Whether the amount sign (that is, whether the transaction is a receipt or disbursement in thecash 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 inTransaction 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 transactionin the bank statement. The Match Relevance rate ranges between 0 and 1, and the best match is the


transaction with the highest or a significantly high Match Relevance rate. The transactions with a MatchRelevance 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 specifythe 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 MatchRelevance rate. Before calculating the Match Relevance rate, the system applies to the document datefactor an additional weighting by the number of days the transaction in the bank statement usuallyappears after it has been processed in the system.

The additional weighting parameters for the date are the Payment Clearing Average Delay and theEstimated 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 isusually delayed before it appears in the bank statement with regard to the document date in thesystem.

• In the Estimated Deviation (days) box, you specify the number of days before and after theaverage delay date that includes almost all (99.73%) possible dates of the transaction in thesystem that could match the transaction in the bank statement, so that a date that is outside ofthe 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 matchsettings, which you can configure on the Cash Management Preferences form (CA101000). To reviewthe match settings that have been used for the matching process during the current user session, clickMatch Settings on the Process Bank Transactions form toolbar (Finance > Cash Management > WorkArea > Enter), as shown on the screenshot below.


Figure: Transaction Match Settings dialog box

You can modify the match settings that apply to the current user session and experiment with theparameters to find the best values for the relevance calculation in your case. After that, you can specifythe resulting values as the default ones on the Bank Statement Settings tab of the Cash ManagementPreferences form (CA101000).

For the first bank transaction in the screenshot below, with the reference number 1231 ($9000deposit), 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 ofthe bank transaction. The date of the possible match in the system is 12/31/2013, and this date fallswithin the date range of 99.73% probable dates of the bank transaction. The probable date rangeis 27/12/2013 through 1/6/2014. The bank transaction date is one day past the transaction datein the system. Because the date is shifted, the additional weighting function for the date is equalto 0.98, which is the normalized value of the Gaussian distribution with the mean of 0 (PaymentClearing Average Delay) and the standard deviation of 5 (Estimated Deviation). As the result, the MatchRelevance rate for the transaction is 0.7 * 1 + 0.2 * 0.98 * 1 + 0.1 * 0 = 0.896, where the factors are


the reference number, document date, and payee, respectively. The calculation of the additional dateweighting 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 recognizedthem as the best candidates:

• Transaction with the reference number 1231 has relevance of 0.896



To have the largest number of transactions matched automatically, you can adjust the weights of thematch 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 followingrules:

1. The best match is the transaction with the highest Match Relevance rate that is greater than0.75.

2. If there are no transactions with a Match Relevance rate that is greater than 0.75, the bestmatch is the transaction that is more relevant than the other found transactions for 0.2 or moreof the Match Relevance rate. For example, if two transactions were found, one with relevance of0.25 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.


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



• 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.

| 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 caneasily enter vendor documents. You will also configure the cash account that represents the corporatecredit card from which you make payments to vendors, and see how to process such payments in thesystem. In the optional 1099 Vendors lesson, you will learn how to track the payments to 1099 vendorsand prepare Form 1099-MISC.

As a result of completing the lessons of this part, you will have configured vendor-specific prices, andyou will also have the payment method configured for processing payments to vendors from a corporatecredit card.


| Company Story: Accounts Payable | 129

Company Story: Accounts PayableIn this part, suppose that the management of the Software Inc. company wants to enable the followingbusiness 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 thecard to pay small amounts (for example, for books purchased for the company). The company'saccountant 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 tomake 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 theservice. The Advanced Concepts Of Engineering & Software Inc. vendor offers a promotionalprice for all consulting services that are purchased before 4/1/2014. Starting on that day, theservice can be purchased at the regular price offered by the vendor. The other vendor, EtelligentSolutions, offers different prices for the consulting service depending on the number of hourspurchased, 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 relatedto this task is optional in this course.)

In 2013, Software Inc. has made payments to independent contractors, but the company hasn’tfiled Form 1099-MISC yet. The accountant wants to import the YTD amount of 1099 payments tothe vendor and file Form 1099-MISC for 2013.

In this part of the course, you will learn how to process payments from a corporate credit card and howto reconcile the credit card balance in the system. Then you will learn how to configure vendor prices ofdifferent levels. The last lesson describes how to process payments to 1099 vendors.

| Lesson 19: Payments to Vendors by Using a Corporate Credit Card | 130

Lesson 19: Payments to Vendors by Using a Corporate CreditCard

To track payments to vendors made by using a corporate credit card, you create a cash account thatrepresents the corporate credit card in the system and link the cash account to an accrued liabilityaccount.

For example, suppose that you have a bill of $100 for books on consulting. To process a payment byusing the corporate credit card for the bill, you process the bill as usual and specify the credit card cashaccount in the Accounts Payable payment. On processing the payment, the system will generate thetransaction as follows:


• Expense account Dr, $100

When you process the payment that uses the corporate credit card, the system generates thetransaction 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 andspecify the accrued liability account as the expense account in the bill. When you process the creditcard bill, the system generates the transaction as follows:


• Accrued liability account Dr, $100

Then you pay the credit card bill by processing an AP payment for the credit card bill from the cashaccount you use to pay for the credit card (such as a checking account). When you process thepayment 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 cashaccount) with the credit card statement in the same way as you reconcile balances for regular cashaccounts.

In this lesson, you will configure the cash account and the payment method for tracking outgoingpayments made through a corporate credit card. Then you will perform the reconciliation of thecorporate credit card balance in the system with the credit card balance in the statement received atthe 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 thenew 220000-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 220000 - Accrued Liability account with the following settings:

• Account: 220000

• Account Class: OTHCURLIAB


• Type: Liability


• Description: Accrued Liability

For each corporate credit card, you have to define one accrued liability account in the chart ofaccounts. The accrued liability account must be in the same currency as the corporate creditcard is.

2. On the Cash Accounts form (CA202000; Finance > Cash Management > Work Area > Manage),create the corresponding cash account with the following settings:


• Account: 220000 - Accrued Liability


• Branch: SOFT

• Description: Accrued Liability - Corporate Credit Card MyBank Visa

• Restrict Visibility with Branch: Selected (according to the business requirements, the cashaccounts 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 ableto 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 220000-SOFT cash account on theAllowed Cash Accounts tab) to be able to use the payment method with the corporate creditcard. Specify the settings as follows:

• Payment Method ID: CORPCC


• 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: 220000-SOFT, Use in AP: Selected, AP Default:Selected

5. On the Vendors form (AP303000; Finance > Accounts Payable > Work Area > Manage), createthe MyBank vendor, which will represent the bank of the corporate credit card in the system,with the following settings:

• Vendor ID: V000000093 (inserted automatically when you save the new vendor)

• Vendor Name: MyBank

• GL Accounts tab, Expense Account: 220000 - Accrued Liability

• GL Accounts tab, Expense Sub.: 000-00-00


Now the 220000-SOFT cash account, the CORPCC payment method, and the MyBank vendor areready, so that you can track the corporate credit card payments and reconcile the credit cardbalance 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:


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 acorporate credit card:

• Type: Bill

• Vendor: V000000018 (Borders Books, Music & Cafe)

• Date: 1/10/2014


• Description: Books on consulting

• Document Details tab, Branch: SOFT, Ext. Cost: 100.00, Account: 790000 (ServicesExpense), Subaccount: CON-00-00

• Financial Details tab, Payment Method: CORPCC, Cash Account: 220000-SOFT

3. Enter the AP check for the bill by selecting Actions > Pay Bill/Apply Adjustment on the formtoolbar.

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 usethem for any other AP payment.

4. 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:




5. Release the AP check and review the generated batch (see the following screenshot).


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 theaccrued 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 -$100.00

1/28/2014 MyBank service chargesJanuary-2014

-$10.00

1/28/2014 MyBank cash back January-2014 $2.00

Statement Balance: -$108.00

You have decided to pay the credit card payment to the bank by issuing a check from the 220000-SOFTchecking account. Perform the following instructions:


2. On the Bills and Adjustments form (AP301000), enter the bill with the following settings, so youcan process the payment for the month's credit card use:

• Type: Bill

• Vendor: V000000093 (MyBank bank)

• Date: 1/28/2014


• Description: Payment for the corp. credit card as of statement 1/28/2014

• Document Details tab, Branch: SOFT, Transaction Descr.: Payment for the corp. creditcard as of statement 1/28/2014, Ext. Cost: 108.00, Account: 220000 - Accrued Liability,Subaccount: 000-00-00

3. Release the bill and review the generated batch, shown in the following screenshot.


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 accruedliability account.

4. On the Financial Details tab of the Bills and Adjustments form (AP301000) for the bill, make surethat the payment method is CHECK and the cash account is 102000-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 thebill, specify the following details for the AP check:



6. 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 thestatement for 1/28/2014:

1. On the Reconciliation Statements form (CA302000; Finance > Cash Management > Work Area >Enter), select the 220000-SOFT - Corporate Credit Card MyBank Visa cash account.

Before the reconciliation, you can upload the bank statement for the corporate credit card andmatch the transactions by using the Import Bank Transactions form (CA306500; Finance > CashManagement > Work Area > Enter).

2. Create the reconciliation statement with the Reconciliation Date set to 1/28/2014 and theStatement Balance set to -108.00.

The credit card balance is reconciled with the statement balance when the Reconciled Balanceand the Statement Balance are equal for the selected transactions in the reconciliationstatement.

3. Select the Reconciled check box for the $100 book purchase disbursement transaction and savethe changes.

The credit card cash account is still missing $8, which is displayed in the Difference box (asshown in the screenshot below). This is the total amount of transactions that have appeared inthe bank statement, but they haven't yet been processed in the system.


Figure: Reconciliation statement for 1/28/2014

4. By clicking Create Adjustment on the table toolbar, create two cash transactions on 1/28/2014that 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 andcould 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 220000-SOFT cash account.

6. Select the Reconciled check box for the two released transactions so that the Reconciled Balancebecomes -$108.00 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 transactionsthat have appeared the credit card statement. For the selected transactions, the ReconciledBalance is equal to the Statement Balance. Therefore, the credit card balance is reconciled withthe bank statement.


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 paymentnext time.

7. Release the reconciliation statement.

| Lesson 20: Vendor Prices | 137

Lesson 20: Vendor PricesIn 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 thesystem. When you enter a vendor's bill and select a non-stock item in the document line, the systemautomatically 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 filereceived from the vendor. You can keep regular prices and promotional prices in the system. To createand maintain price lists, you use the Vendor Price Worksheets form (AP202010). On this form, you canwork with a draft price list until the price list is ready. Then you have to release the price list to makethe prices effective in the system. On the Vendor Prices form (AP202000), you can view all prices thatare 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 accordingto the priority, which is illustrated on the diagram below. From the list of effective prices, the systemsuggests 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 forthe item in the vendor's bills. For non-stock items, every time you release a bill, the system updatesthe 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 systemsuggests the last vendor price that has been used in the previous bill (if any). If there is no such pricefor the item, the system suggests the standard cost, which you can specify for the non-stock item onthe 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 availablevendor price.


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 anew regular price, the system preserves the previous regular price. For new documents, the systemsuggests the current price or the previous price, depending on the document date. In the AccountsPayable module, you can specify the way the system keeps the history of vendor prices (and the similarsetting 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, asillustrated on the Effective Price timeline on the diagram below.


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 Payabledocuments, and analyze how the system keeps the history of vendor prices. According to the companystory, the companies purchase services from the following vendors:

• The Advanced Concepts Of Engineering & Software Inc. vendor, which provides a list of regularprices 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 hoursthat 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 V000000014 (Advanced Concepts Of Engineering & Software Inc.) vendor offers the followingprices 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 forV000000014:


1. On the Vendor Price Worksheets (AP202010; Finance > Accounts Payable > Work Area > Enter),add a new vendor price worksheet as follows:

a. Create a worksheet by specifying the following parameters:

• Effective Date: 1/1/2014

• Description: Regular prices of V000000014 (Advanced Concepts Of Engineering &Software Inc)

b. On the table toolbar, click the Load Records from File button, and upload the prices fromthe VendorPrices_AdvConcepts_1_1_2014.xlsx file; accept the default null value andcolumn 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 priceseffective in the system.

The system updates the list of effective prices. The prices from the worksheet will besuggested in documents starting on 1/1/2014. You can review and amend the prices byusing 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:

• Vendor: V000000014 (Advanced Concepts Of Engineering & Software Inc)

• Inventory ID: CONSULT

• Promotional: Selected

• Price: 95.00


• Expiration Date: 3/31/2014

c. 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, asshown in the following screenshot.


On this form, you can filter the prices, for example, by vendor or by item for review orexport to an Excel file. You can also use the Effective As Of box to view the prices effectiveon 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 V000000014 (Advanced Concepts Of Engineering & Software Inc) vendor, andspecify the 790000 expense account and the 000-00-00 expense subaccount for thevendor.

b. On the Bills and Adjustments form (AP301000; Finance > Accounts Payable > WorkArea > Enter), start entering a new bill with the V000000014 (Advanced Concepts OfEngineering & 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-stockitem.

Notice that the promotional $95 price of the item has been suggested in the UnitCost 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 thevendor price taken from the non-stock item. The system calculates the Ext. Costof the line as the Quantity times Unit Cost. Alternatively, you can specify only theExt. Cost amount in the line and leave the Quantity and Unit Cost as zero. TheAmount of the line is equal to the Ext. Cost of the line if there are no discounts


for the item. The total Amount of lines is the Detail Total of the bill if there are nogroup and document discounts and taxes.

b. Change the date of the bill to 4/1/2014, which is the first day after thepromotional price expires.

Notice that the $100 price of the item has been suggested in the Unit Cost box, asshown 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 anew price. (This mechanism is demonstrated in Lesson 23: Customer Prices.) In this example, you willsee 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 V000000014 (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 keepsthe 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 followingparameters:


• Description: Regular prices of V000000014 (Advanced Concepts Of Engineering &Software Inc)


b. On the table toolbar, click the Load Records from File button and upload the prices fromthe VendorPrices_AdvConcepts_5_1_2014.xlsx file; accept the default null value andcolumn mapping.

c. Clear the Hold check box, save the worksheet, and click Release to make the priceseffective in the system.

The system updates the list of effective prices.

d. Create a worksheet that is effective starting on 9/1/2014, and upload the prices to it fromthe VendorPrices_AdvConcepts_9_1_2014.xlsx file.

e. Release the worksheet to make the system update the effective vendor prices.

3. 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 pricesshown.

The last regular price, $120, starts on 9/1/2014. For the two previous prices, the system has setthe expiration date, which is the last day when the price applies. For the price that is effective on1/1/2014, the system has set the expiration date to 4/30/2014, which is the last day before thenext price comes into effect on 5/1/2014. For the price that is effective on 5/1/2014, the systemhas 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 specifythe expiration date for the previous price manually.

Figure: Expiration dates, which are automatically set for previous prices when a new price is released from aworksheet

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 thevendor provides such price lists. To use quantity-dependent prices, you have to enable the VolumePricing feature in the system. In quantity-dependent price lists, you have to start the first price from abreak quantity of 0.

The V000000049 (Etelligent Solutions) vendor offers prices that depend on the number of purchasedhours 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 youpurchase:


1. 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 forstock and non-stock items with different prices that depend on item quantity.

2. Define the prices offered by the V000000049 (Etelligent Solutions) vendor for their consultingservice, which depend on the number of service hours that you purchase, as follows:

a. On the Vendor Price Worksheets form (AP202010; Finance > Accounts Payable > WorkArea > Enter), create a worksheet that is effective starting from 1/1/2014 for theCONSULT item and the V000000049 (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 V000000049 vendor for theCONSULT non-stock item

Vendor Inventory ID Break Qty. Pending Price

V000000049 CONSULT 0.00 110.00

V000000049 CONSULT 5.00 100.00

V000000049 CONSULT 10.00 90.00

The Break Qty. specifies the item quantity starting from which the new price isapplied.

b. Release the worksheet to update the effective prices. (The released worksheet is shown inthe 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 V000000049 vendor's pricesthat apply to the consulting service item.

3. On the Bills and Adjustments form (AP301000), start entering a new bill of the V000000049(Etelligent Solutions) vendor and add three lines to the bill with the CONSULT non-stock itemand the quantities, respectively, of 1, 5, and 12 hours.


As you can see in the following screenshot, the system suggests different unit costs dependingon 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:

1. For the ADVERT item, for which we do not have a sales price specified, specify an $85 standardcost, 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 thePending Cost Date.

c. On the form toolbar, click Actions > Update Cost.

2. On the Bills and Adjustments form (AP301000), start entering a new bill for the V000000011(Midwood Ambulance) vendor for 1/1/2014, and add a line with the ADVERT item. The systemsuggests the $85 standard cost (see the screenshot below), because there is no regular orpromotional price effective for this vendor on the specified date.


Figure: Standard cost suggested by the system

3. Change the price to $75, specify 000-00-00 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 theV000000011 vendor.

Figure: Last purchase price for the V000000011 vendor

5. On the Bills and Adjustments form (AP301000), start entering a new bill for the V000000011(Midwood Ambulance) vendor for 1/1/2014 and add a line with the ADVERT item.


Figure: Last purchase price suggested for the V000000011 vendor

The system suggests the last purchase price, which is $75.

Related LinksVendor Price ListsNon-Stock Item Support

http://partner.acumatica.com/Main.aspx?CompanyID=USA&ScreenId=WP000000&PageID=4aa635bc-2723-49fc-8ce0-41d035e5821e

http://partner.acumatica.com/Main.aspx?CompanyID=USA&ScreenId=WP000000&PageID=3997a0ff-34f2-4c0d-a8f7-1b579dc103aa

| Lesson 21: 1099 Vendors | 148

Lesson 21: 1099 VendorsThis lesson, which covers concepts that are relevant for businesses operating in the United States, is notrequired 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 forindependent contractors the company has paid during 2013. The payments to these vendors should bereported in Box 7 of Form 1099-MISC. Because $1000 is more than the minimum amount reported inBox 7, $600, the accountants have to file Form 1099-MISC for the Repair master vendor for 2013.

To mark the vendor as a 1099 vendor in the system, you have to select the 1099 Vendor check box onthe Vendors form (AP303000) for the vendor. For 1099 vendors, the system tracks the payments to befiled 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 youmigrate the system in the middle of a calendar year. After that, you will prepare Form 1099-MISC for2013 for a vendor, and then close the 2013 year to prevent new payments to 1099 vendors from beingposted in that calendar year. Then you will learn how to specify a default box number for a vendor, andhow to associate a box number with an expense account. Finally, you will see how to correct a bill tochange 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 asfollows:

1. Specify the payer's identification number and address, which are inserted into Form 1099-MISCfor 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: 10-9999999 (a sample Employer ID Number we are using forthe company)

• Address Line 1: 123 White Street

The branch name, address, and identification number are inserted into Form 1099-MISCas the payer's information.

b. On the Branches form (CS102000), select the COMP branch, and specify the payer'sinformation for the Computers Inc. company:

• Tax Registration ID: 10-9999990 (another sample Employer ID Number we areusing for the company)

• Address Line 1: 10 Green Street


2. To specify one recipient's identification number, on the Vendors form (AP303000), select theRepair master independent contractor (V000000090), and on the Purchase Settings tab, enter123-00-6789 in the Tax Registration ID box.

To specify another recipient's identification number, while remaining on this form, select theQuick office aid master independent contractor (V000000087), and on the purchase settings tab,enter 321-00-9876 in the Tax Registration ID box.

The vendor's name, address, and identification number will be inserted into Form 1099-MISC forthe 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 theyear-to-date amounts that you have paid to Repair master and Quick office aid master during the 2013calendar year, to be able to file Form 1099-MISC for these vendors for 2013. Proceed as follows:


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: V000000090 (Repair master)



• Date: 12/31/2013


• Description: 1099 YTD payment import for 2013

• Document Details, Branch: SOFT, Ext. Cost: 1000.00, Account: 758000 (Repair &Maintenance Expense), Subaccount: 000-00-00, 1099 Box: 7-Nonemployee Compensation

You can add more lines to the check for the year-to-date amounts in other 1099 boxes. Thecash account and payment method aren't important in the check; you can select any account ormethod. You do not have to print out the check on paper, because you are processing the checkonly to record the year-to-date (YTD) payment amount for the 1099 vendor into the system.

3. 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: V000000087 (Quick office aid master)



• Date: 12/31/2013


• Description: 1099 YTD payment import for 2013

• Document Details, Branch: SOFT, Ext. Cost: 350.00, Account: 758000 (Repair &Maintenance Expense), Subaccount: 000-00-00, 1099 Box: 7-Nonemployee Compensation

4. Print both quick checks on the Process Payments/Print Checks form (AP503000), and thenrelease the payments on the Release Payments form (AP505200).


5. Find and reverse the batch generated on release of the quick checks, because you have alreadyimported the actual account balances for 12-2013, 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 ledgeraccount 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 calendaryear appears among the options that can be selected in the 1099 Year box. You can process thepayments to 1099 vendors dated to the calendar year until the year is closed in the AccountsPayable 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 V000000087 (Quick office aid master) vendor and 2013 year (see the followingscreenshot).

The form shows the amounts paid to the vendor in the selected calendar year. In the table, youcan see the $350 year-to-date payment that has been imported for the Quick office aid mastervendor for 2013.

Figure: 1099 Year Summary for the Quick office aid master vendor for 2013

2. 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 open1099 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 isat or above than the minimum specified for the 1099 box on the Accounts Payable Preferences


form (AP101000; Finance > Accounts Payable > Configuration > Setup); otherwise, the reportshows zero in the box. Thus, for the SOFT branch and 2013 calendar year, the report shows onlythe $1000 payment made to Repair master; it does not show the $350 payment to Quick officeaid master, which is less than minimum $600 to be reported in Box 7.

Figure: 1099 Year Summary for the SOFT branch for 2013

3. Run the 1099 Year Summary report (AP654000) with the COMP branch and the 2014 calendaryear.

For the Computers Inc. company, you have configured the COMP consolidating branch so thatthe company can file a single Form 1099-MISC with payment amounts consolidated for the twobranches of the company, WEST and EAST.

The report (see below) shows 1099 vendors to which you have made payments during theselected year. During 2014, you have paid $4680 to Repair master.

Figure: 1099 Year Summary for the COMP consolidating branch for 2014

4. 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 billlines that have the 1099 box specified. The Box 7 Total, shown below, is the total for all thelisted documents and is equal to the amount displayed in Box 7 of the 1099 Year Summaryreport ($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 theactual payment). That is, the report displays the Pay Date of the bill, which is displayed on the


Financial Details tab of the Bills And Adjustments form (AP301000). The date when the paymentwas made is displayed in the Payment Date box on the Financial Details tab on the Check AndPayments form (AP302000).

To view the list of all vendors that are configured as 1099 vendors in the system, you can use thelist 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 theyear 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 theSOFT branch and the 2013 year and run the report.

The system outputs Form 1099-MISC for each vendor to whom you have made payments duringthe selected year with YTD amount that is at least the minimum amount to be reported in each1099 box. Thus, you see one Form 1099-MISC for the Repair master vendor with the $1000 YTDamount in Box 7 and $1000 total. The Form 1099-MISC template provided with Acumatica ERP isactual for 2013 and 2014, according to the Internal Revenue Service (IRS) instructions for Form1099-MISC for these years.

On the Create E-File (AP507500) form, for the selected branch, you can prepare Form 1099-MISCin the electronic format required by the IRS. The electronic form settings are specified by branchon 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 thesystem to prevent posting of new payments to 1099 vendors with a payment date that belongsto 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 yearfor 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 to1099 vendors with a date that belongs to the 2013 calendar year. You cannot reopen the 1099year after it is closed.

1099 payments are independently tracked for each calendar year. Therefore, users don't have toclose 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 AccountsPayable 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 expenseaccount that you select in an Accounts Payable document for a 1099 vendor, associate the 7 -Nonemployee Compensation box with the 790000 - 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 790000 - Services Expense account in the Accountcolumn and save the changes.

When you select the 790000 - Service Expense account for a 1099 vendor, the system willautomatically insert the 7 - Nonemployee Compensation box into the document. You can changeboth the account and the 1099 box in the document, if needed.


2. On the Bills and Adjustments form (AP301000), enter the $1000 bill received on 1/31/2014from John Smith, independent consultant, for which the 1099 box is not specified in the vendoraccount. The bill has the following settings:

• Type: Bill

• Vendor: V000000073 - John Smith Independent Consultant

• Terms: 30D

• Date: 1/31/2014


• Description: 20 hours of training

• Document Details, Branch: SOFT, Ext. Cost: 1000.00, Account: 790000 - ServicesExpense, Subaccount: CON-00-00

Notice that as soon as you select the expense account for a 1099 vendor, the system insertsthe 7 - Nonemployee Compensation box into the document for this vendor (see the followingscreenshot) 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 1099vendor. You only have to specify the box number in the needed lines and leave the 1099 Box columnempty for the lines that you don't want to include in Form 1099-MISC. Also, if you need to modify a1099 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 thisamount should not be tracked for 1099; clear the 1099 box in the line of the vendor's bill (seethe 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 $1000payment dated 1/31/2014 (the day you pay the bill), as shown in the following screenshot.


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 noticethat the $1000 payment has not appeared on the form, because the 1099 box was not specifiedin the bill for which the payment was made, and the payment wasn't tracked as a 1099 paymentin the system.

4. To correct the bill and the payment application (suppose that you later learned that the $600of the bill should have been classified for 1099) to change the amount tracked for Form 1099-MISC, 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: 600.00; 1099 Box: 7 - Nonemployee Compensation

• Ext. Cost: 400.00; 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 beenapplied to the wrong bill. On the Application History tab, select the bill and click ReverseApplication. (See the following screenshot.)


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 releasethe 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 tocorrect bill (see the following screenshot).


Figure: The resulting check application

7. On the Bills and Adjustments form (AP301000), reverse the incorrect bill. To do this, clickActions > 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 theApplication History tab of the debit adjustment to make sure that bill has been reversed andclosed (see the following screenshot).

The default 1099 Box (if any 1099 box is associated with an expense account or specified for a1099 vendor) is inserted into every document that you create for the vendor. Therefore, when youreverse a document for a 1099 vendor, you have to make sure that the 1099 box is specified inthe lines of the reversing document exactly as for these lines in the reversed document. In thisexample, you reverse a non-classified bill with no 1099 Box specified in the lines, so you have toclear 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 thatthe payment for the vendor now appears on the form, as shown in the following screenshot.


Figure: 1099-MISC Form for the SOFT branch for 2014

Related LinksSupport for U.S. 1099-MISC FormFiling the Form 1099 MISC Electronically

http://partner.acumatica.com/Main.aspx?CompanyID=USA&ScreenId=WP000000&PageID=def76f01-4b80-41e0-95a8-304a69d5b50e

http://partner.acumatica.com/Main.aspx?CompanyID=USA&ScreenId=WP000000&PageID=e5360074-b045-412d-8450-917db7c3e8a1

| Check Yourself | 158

Check YourselfAfter you have completed Lesson 21: 1099 Vendors, answer the following questions. Each question hasonly one correct answer. Then, check yourself using the key at the end of the topic.

1. The user needs to create a bill for an independent contractor in the system, but there is no 1099Box column on the Document Details tab of the Bills and Adjustments form (Finance > AccountsPayable > 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 PayablePreferences form (Finance > Accounts Payable > Configuration > Setup)

2. If a vendor account is configured as a 1099 vendor in the system, can users process a paymentfor this vendor so that it is not reported on Form 1099-MISC?

• a) Yes

• b) No

3. Where do users specify the 1099 box number for the amount to be reported on Form 1099-MISCfor a vendor?

• a) In the line of the vendor’s bill

• b) In the payment (AP check) to the vendor

4. Do users have to close a calendar year for 1099 payments to be able to prepare the Form 1099-MISC for the next calendar year?

• a) Yes

• b) No

5. 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 automaticallyclosed in the Accounts Payable module?

• a) Yes

• b) No

6. 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 closedcalendar year.

• b) No Accounts Payable bills can be processed for 1099 vendors in the closed calendaryear.

• c) Any documents can be processed in the closed calendar year if the Allow Posting toClosed Periods option is selected on the General Ledger Preferences form (Finance >General Ledger > Configuration > Setup).

7. How can you import the year-to-date amount of 1099 payments for a vendor if the companymigrates 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 inthe system.

• b) Process an AP bill for the vendor with the amounts classified by 1099 boxes, andreverse the batch that has been generated from the bill to reverse the impact on theGeneral Ledger.

| Check Yourself | 159

• c) Process a quick check for the vendor with the amounts classified by 1099 boxes, andreverse the batch that has been generated from the quick check to reverse the impact onthe General Ledger.

8. Can you export the amounts to be printed on Form 1099-MISC from the system to an Excel file?

• a) Yes

• b) No

9. Which report can you use to view the list of documents with 1099 payment amounts to bereported 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.



• 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.

| 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 auto-application functionality of the system. Also, you will configure different prices for customers so thatyou can easily create customer invoices. Then you will configure the discount codes that apply toinvoices based on different conditions. Finally, you will configure the system for processing credit cardpayments that you want to accept from customers.

As a result of the lessons of this part, you will have configured customer-specific prices and discountcodes. You will also have configured the payment method for processing customer payments by creditcard.


| Company Story: Accounts Receivable | 162

Company Story: Accounts ReceivableThe management of the Software Inc. company wants to implement the following advanced businessprocesses in the system:

• Auto-applying payments to invoices.

The Software Inc. accountant wants to auto-apply payments received from Boulder CouriersDenver 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 providedifferent prices to customers depending on the purchased service, the date of purchase, and someother conditions.

• Applying discounts to services purchased by loyal customers.

The Software Inc. company offers line, document, and group discounts on services deliveredto customers. The sales manager wants to configure the discounts so that they will be appliedautomatically to appropriate purchases made by loyal customers.

• Accepting customer payments by credit card.

The Software Inc. company has customers who purchase services regularly. These customerswant to pay their invoices by credit card, and the company has decided to accept credit cardpayments. The company has set up a merchant account through MyBank and purchased apayment gateway service from Authorize.Net to be able to accept credit card payments andprocess them in Acumatica ERP. From the merchant account, MyBank will deposit the funds intothe 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 bycredit card, how to configure auto-application of payments to invoices, how to set up different pricingcategories, and how to configure discount codes.

| Lesson 22: Auto-Application of Payments | 163

Lesson 22: Auto-Application of PaymentsA company can have many payments and many invoices. To avoid manually matching multiple invoicesto 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 arereleased.

• For newly entered invoices, you can use the auto-application of payments when the invoice isreleased.

• For open (already released) payments and credit memos, you can run the auto-applicationprocess.

In this lesson, you will apply the customer payments to open invoices by using the auto-applicationfunctionality 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 toenter the $25,000 payment received from Boulder Couriers Denver on 2/1/2014 and auto-apply it toopen invoices of this customer on payment release:


2. On the Customers form (AR303000; Finance > Accounts Receivable > Work Area > Manage),select the C000000059 (Boulder Couriers Denver) customer, and select the Auto-Apply Paymentscheck box on the General Info tab to enable the auto-application of payments for the customeraccount.

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 followingsettings:

• Type: Payment

• Customer: C000000059 (Boulder Couriers Denver)








4. On the Application History tab, review the INV000005 invoice, to which the payment has beenautomatically applied. (See the following screenshot.) Notice that after the application, theinvoice retains a balance of $81.65.

When you release a payment that has been received from a customer for which the Auto-Apply Payments check box is selected, the system automatically applies the payment to opendocuments of this customer, if there are any. The payment is applied first to overdue charges


and then to invoices and debit memos if the Apply Payments to Overdue Charges First checkbox is selected on the Accounts Receivable Preferences form (AR101000; Finance > AccountsReceivable > Configuration > Setup). Otherwise, the payment is applied to open invoices, debitmemos, 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 followinginstructions to enter the new $500 invoice from Jevy Computers and auto-apply the payment on releaseof 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: C000000003 (Jevy Computers)

• Date: 2/1/2014


• Description: Services delivered

On the Document Details tab, add the line that shows the $500 revenue received by theSoftware company:

• Branch: SOFT

• Ext. Price: 500.00



2. Review the Applications tab, which displays the $2000 payment that can be applied to theinvoice (see the screenshot below).


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 thatcan be applied to the invoice ($500).

Before you release the invoice, the Applications tab shows the list of documents that can beapplied to the invoice, including payments and credit memos. In the Amount Paid column, you canspecify the application amount for the needed documents, and the system will apply all documentsthat have a non-zero Amount Paid to the invoice.

4. Release the invoice. The payment has been automatically applied to the invoice (see thescreenshot 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 theApplications tab of the Invoices and Memos form (AR301000).


3. Auto-Applying Open Payments to Outstanding Documents by Running the Auto-ApplicationProcess

Suppose that on 2/28/2014, you decided to apply all open payments to outstanding documents. Runthe 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:



• Apply Credit Memos: Cleared

• Release Batch When Finished: Selected

The application date and the application period will be inserted into the applications that will becreated by the system during the process. You select the Release Batch When Finished checkbox to make the system automatically release the applications after auto-application. If thecheck box is cleared, the applications will be created but not released, and you can review theapplications on the Documents to Apply tab of each payment on the Payments and Applicationsform (AR302000); you can then release them. You left the Apply Credit Memos check boxcleared 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 willrun the auto-application process. When you run the process, the system searches for openpayments of the customers that are assigned to the selected statement cycle (you can selectmultiple statement cycles at once). In this course, all customers are assigned to the EOMstatement cycle. Therefore, the system will search for open payments of all customers in thesystem.

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 preparecustomer statements while there are unapplied customer payments for the statement period inthe system. To enable the warning, on the Statement Cycles form (AR202800), select the RequirePayment 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 assignedto the statement cycle. The detected payments are applied first to overdue charges and then toinvoices and debit memos if the Apply Payments to Overdue Charges First check box is selectedon the Accounts Receivable Preferences form (AR101000). Otherwise, the payments are appliedto open invoices, debit memos, and overdue charges, starting from the oldest documents bytheir due date. If you want to include credit memos in the auto-application process, select theApply Credit Memos check box before running the process; with this check box selected, thesystem searches for all open payments and credit memos and applies them to the outstanding


documents, as described above. The payments and credit memos are applied starting from theoldest documents by their document date.

After the process is complete, you can find the documents to which the payment was applied onthe Application History tab of each payment and credit memo on the Payments and Applicationsform (AR302000).

4. On the Payments and Applications form (AR302000), select the $2000 Jevy Computers paymentthat has been automatically applied to the open invoices of this customer, in order to review theapplications.

On the Application History tab (see the following screenshot), note that the payment has beenauto-applied to three invoices in the order of their due dates. The oldest $368 and $540 invoiceshave been fully paid and therefore are closed; the third invoice has been partially applied andretains a $3489 balance.

Figure: Payment applied to invoices

| Lesson 23: Customer Prices | 168

Lesson 23: Customer PricesTo simplify entering documents in the system, you can create and keep the catalog of customer pricesfor stock items and non-stock items in the system. Acumatica ERP provides the following pricingmechanisms for maintaining sales prices:

• Price lists: By using price lists, you can define flexible pricing strategies. You can define differentpromotional 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 thehistory of the price changes.

• Default prices: You can use default prices to define prices for non-stock items. The system doesnot keep a history of default prices.

To define and update multiple prices at once, you can create and release sales price worksheets. Afteryou have released a sales price worksheet, the system updates the sales price list for items, so that youcan use these prices in customer invoices and sales orders if the Distribution suite is in use. When youcreate an invoice and select a non-stock item in a document line, the system automatically suggests theappropriate 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 maintenanceof price lists for non-stock items. Using the Distribution suite and stock items is outside of the scope of thiscourse, however.

On the Sales Price Worksheets form (AR202010), you can create a sales price worksheet manually orupload the list of customer prices from an Excel file. After you release the worksheet, the sales pricesdefined in the worksheet become effective starting on the specified date and appear on the Sales Pricesform (AR202000). On the Sales Prices form (AR202000), you can review the list of prices defined in thesystem and update individual prices.

For each item in a a sales price worksheet, you can define prices of different levels. In a documentwhere you select the item, the system suggests the price by using the following priorities, from thehighest 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, thesearch continues.

3. The price specified for the predefined Base customer price class (base price). If there is no suchprice, the search continues.

4. The default price of the non-stock item (not used in this course). Default price does not haveeffective 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 promotionalprice.

• If there is no applicable promotional price, the system suggests the regular price if its effectivedate 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 thebest price for the customer. The following diagram illustrates the priority of customer prices:


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 pricesfor services that the Software Inc. company provides to their customers. Then, you will see howthe system selects the price depending on different conditions. After that, you will create two moreworksheets and see how the system keeps the history of price changes. Thus, in the lesson, you willcomplete 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 offerspromotional prices for partners. To create a list of sales prices in the system, complete the followingtasks:

1. Specify the PARTNER customer price class for customers C000000001 and C000000002. To dothis:

a. On the Customer Price Classes form (AR208000; Finance > Accounts Receivable >Configuration > Setup), add a record for the PARTNER customer price class with thefollowing settings:

• Price Class ID: PARTNER

• Description: Partners

• Sort Order: 1


b. On the Customers form (AR303000; Finance > Accounts Receivable > Work Area >Manage), select customer C000000001, and select PARTNER in the Price Class ID box onthe Delivery Settings tab.

c. On the Customers form (AR303000), select customer C000000002, and select PARTNERin the Price Class ID box on the Delivery Settings tab.

2. 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 worksheetfrom the SalesPrices_AdvConcepts_1_1_2014.xlsx file. While you are uploading theworksheet, leave the default column mapping. The resulting worksheet looks like thatshown 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 uploadedbase prices, customer-specific prices for the C000000002 customer, and prices for thePARTNER price class.

If you need to correct the prices, you can do this directly on the Sales Price Worksheetform (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 noprices, 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 withpromotional prices. To speed up data entry, you can copy the existing prices and use them assource prices for calculating pending prices by performing the following steps:


a. On the Sales Price Worksheet form (AR202010), create a new sales price worksheet andselect 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 thescreenshot 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, clickCalculate 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


• 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 releasethe 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 customerprice class.


If there are multiple customer prices in the system, you can filter the records that you want to seeon 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 effectiveuntil 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 brokendown 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 differenttypes of prices. You don't have to save the invoices you create in this task; they are for demonstrationpurposes 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 C000000001 customer, and add two lines with theCONSULT and SUPPORT non-stock items, respectively.

The C000000001 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 forCONSULT 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 theregular prices for the customer price class ($90 for CONSULT and $190 for SUPPORT).

3. Create an invoice for 1/1/2014 for the C000000002 customer and add two lines with theCONSULT and SUPPORT non-stock items, respectively.

The C000000002 customer is assigned to the PARTNER customer price class and has customer-specific price defined. The customer-specific prices have a higher priority than the promotionalprices defined for the PARTNER customer price class; therefore, the system suggests thecustomer-specific prices ($80 for CONSULT and $180 for SUPPORT).

4. Create an invoice for 1/1/2014 for the C000000003 customer, and add two lines with theCONSULT and SUPPORT non-stock items, respectively.

The C000000003 customer isn't assigned to any customer price class and does not havecustomer-specific price defined. The system suggests the regular prices that are defined for


the Base customer price class and effective on 1/1/2014 ($100 for CONSULT and $200 forSUPPORT).

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 meansthat by default, the system keeps the new price defined in the worksheet and the previous regularprice.

Alternatively, you can select Fixed Number of Months as the Retention Type and specify the numberof months for which the system will keep the price history. (This way of keeping the history of prices isdemonstrated in Lesson 20: Vendor Prices.)

Perform the following instructions to create and release two more worksheets, and analyze how thesystem 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 isselected 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 followingsettings:

• Source section, Price Type: Base



• Destination section, Price Type: Base

c. Click Calculate Pending Prices on the table toolbar. In the Calculate Pending Prices dialog,specify the following settings and click Update:


• Price Basis: Source price

d. Release the worksheet to make the system update the effective sales prices.

3. On the Sales Prices form (AR202000), select Base in the Price Type box and review the baseprices, as shown in the following screenshot.


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 (thelast price). To avoid overlapping prices, the system has automatically specified the expirationdate for the last prices (2/28/2014) as the last date before the date when the new regular pricesbecome effective (3/1/2014).

4. On the Sales Price Worksheet form (AR202010), create the sales price worksheet effectivestarting 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 followingsettings:

• Source section, Price Type: Base



• Destination section, Price Type: Base

c. Click Calculate Pending Prices on the table toolbar. In the Calculate Pending Prices dialog,specify the following settings, and click Update:


• Price Basis: Source price

d. Release the worksheet to make the system update the effective sales prices.

5. On the Sales Prices form (AR202000), select Base in the Price Type box and review the baseprices, as shown in the following screenshot.


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 areeffective starting on the specified effective date (4/1/2014), and the previous regular pricesbecome the last prices, which expired on 3/31/2014. The previous last prices are no moreavailable.

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 thefollowing 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 $90price for the second half of the year. To do this, you need to clear the Overwrite Overlapping Pricescheck box. The system will insert one more price record for the item, so that the sales prices will beas follows:

• $80 effective from 1/1/2014 through 3/31/2014


• $90 effective from 7/1/2014

With the Overwrite Overlapping Prices check box selected, the $90 price will be overwritten and youwill have the following prices:


• $85 effective from 4/1/2014

Related LinksMultiple Price ListsSales Price WorksheetEffective Period of Prices

http://partner.acumatica.com/Main.aspx?CompanyID=USA&ScreenId=WP000000&PageID=4a1f10e8-7127-42c3-9df8-804cedb52cef

http://partner.acumatica.com/Main.aspx?CompanyID=USA&ScreenId=WP000000&PageID=73bc7407-d826-4ce9-8e51-fed8b54c9190

http://partner.acumatica.com/Main.aspx?CompanyID=USA&ScreenId=WP000000&PageID=7aacb762-b1f3-41d2-93ff-d4be7fd1c80a

| Lesson 24: Customer Discounts | 177

Lesson 24: Customer DiscountsIn 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 andMemos form (AR301000; Finance > Accounts Receivable > Work Area > Enter), the system applies anyautomatic discounts that are defined in the system. Automatic discounts are applied in the followingorder:

1. The best available line discount is applied to the extended price of a line. The extended priceafter the line discount is displayed in the Amount column of the line. The total amount of all thelines 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 thatare automatically excluded from the discountable amount.

3. The best available document discount is applied to the following amount: the detail total minusthe total of all line discounts minus the group discount total. The Discount Total box holds thesum 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 SalesOrders module of the Distribution suite.

The final document amount after all deducted discounts is displayed in the Balance box of the invoicesummary. The Balance amount equals the Detail Total minus the Discount Total of the document. Whenyou release the invoice, the AR account is debited in the amount of the invoice balance and the salesaccount is credited in the amount of the detail total. If the discount (expense) account isn't specified inthe 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 apromotional discount, select the Promotional check box in the discount summary and specify theeffective and expiration dates.

You can specify prorated discounts. Suppose that the customer purchases 50 hours of service in thetotal amount of $1000 ($20/hour). Further, suppose that you give a discount broken down by quantityas 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 $1000 - $150 = $850. If thediscount is prorated, the system would apply the discount incrementally: For 15 + 15 + 15 = 45 hours,the discount would be 15% (0.15 * 45 * 20 = $135), and for the remaining 5 hours, the discount wouldbe 5% (0.05 * 5 * 20 = $5). Therefore, the amount after the prorated discount is applied would be$1000 - $135 - $5 = $860. As a result, the prorated discount amount is less than the amount of thenon-prorated discount (in the example, $140 prorated versus $150 non-prorated). To specify a prorateddiscount, 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 theircustomers. Complete the following tasks:

1. Configuring line discounts

2. Configuring a document discount

3. Applying a manual line discount

4. Configuring a group discount


1. Configuring Line Discounts

Perform the following instructions to configure two line discounts and see how they are applied in aninvoice:

1. On the Customers form (AR303000; Finance > Accounts Receivable > Work Area > Manage),for the C000000004 customer (KRK Consulting Service), on the Delivery Settings tab, select thePARTNER customer price class in the Price Class ID box.

2. Define the automatic line discount of 5% that you give for consulting and customization servicesif 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 itemspecified 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 maybe applied depending on the purchased quantity of the CONSULT and CSTMZATION non-stock items:

a. In the Discount Code box, select LI to create a discount for this code and thenspecify 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 creatediscount sequences—that is, discounts with different conditions based on the samediscount code. For example, based on the LI discount code shown above, you couldcreate another discount: a 10% line discount for the ADVERT and CONSULT items.If you create overlapping LI discounts, the system will select the best availablediscount. 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 theCSTMZATION item, and a 10% discount for the ADVERT and CONSULT items in aninvoice line.

b. On the Items tab, add the CONSULT and CSTMZATION non-stock items to thetable.

c. On the Discount Breakpoints tab, add a row and specify the following settings:

• Pending Break Quantity: 5.00

• Pending Discount Percent: 5.00

• Pending Date: 1/1/2014

d. On the form toolbar, click Save and then click Update Discounts.


You can apply line discounts to either the extended price or the unit price of the line. Bydefault, line discounts apply to the extended price of the line because the Item ExtendedPrice option is selected in the Apply Line Discount box on the Price/Discount Calculation tabof the Accounts Receivable Preferences form (AR101000; Finance > Accounts Receivable >Configuration > Setup). To apply line discounts to the unit price of the line, instead selectthe Item Price option. The option sets the calculation base for all line discounts that youdefine in the system.

3. Proceed as follows to define the automatic line discount of 3% that you give to customers thatare assigned to the PARTNER customer price class if they purchase five or more hours of anyservice:

a. On the Discount Codes form (AR209000), add a record for the line discount code with thefollowing settings:

• Discount Code: LCPC

• Description: Line discount customer price class

• Discount Type: Line

• Applicable To: Customer Price Class


The specified line discount code can be applied to a line, depending on the customer priceclass specified in this line.

b. On the Discounts form (AR209500), do the following to define the 3% line discount thatdepends on the line quantity purchased by customers of the PARTNER customer priceclass:

a. In the Discount Code box, select LCPC to create a discount for this code.

b. Specify the following settings for the discount:



• Description: Line discount customer price class 3%

c. On the Customer Price Classes tab, add a row to the table for the PARTNERcustomer price class.

d. On the Discount Breakpoints tab, add a row and specify the following settings:




This row defines the 3% discount that you give when customers of the selectedcustomer 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 aninvoice for the C000000004 customer for 1/1/2014.

5. On the Document Details tab (see the screenshot below), add three lines with the followingsettings:


Lines to be added on the Document Details tab

Inventory ID Quantity Unit Price

CONSULT 3 90

SUPPORT 5 100

CSTMZATION 5 100

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 withthe 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 non-stock item, the discount is 3%, the discount that you give to the customers of the PARTNERcustomer price class; notice the LCPC discount code. (This discount is the only line discountthat can be applied to this line.) In the line with CSTMZATION, the discount is 5% (see the LIdiscount code), which is the best available discount of the 5% discount that you give for the itemand 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 thecustomer on the item that is selected in the document line. To do this, on the Price/DiscountCalculation tab of the Accounts Receivable Preferences form (AR101000), select the IgnoreConfigured 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 aninvoice:

1. Define the automatic document discount of $10 that is given to the C000000004 customer if itpurchases services in the amount of $1000 or more:

a. On the Discount Codes form (AR209000), add a record for the document discount codewith the following settings:

• Discount Code: DC


• Description: Document discount customer

• Discount Type: Document

• Applicable To: Customer


The specified document discount code can be applied to the detail total, depending on aparticular customer.

b. On the Discounts form (AR209500), define the $10 document discount, which depends onthe detail total amount of the C000000004 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 C000000004 customer.

d. On the Discount Breakpoints tab, add a row and specify the following settings:

• Pending Break Amount: 1000.00

• Pending Discount Amount: 10.00


In this row, you have defined the $10 discount that you give to the customer whenit purchases services in the amount of $1000 or more.

e. On the form toolbar, click Save and then click Update Discounts.

2. On the Invoices and Memos form (AR301000), select the invoice that you have created for theC000000004 customer for 1/1/2014. To recalculate the discounts in the document, on the formtoolbar, select Actions > Recalculate Prices and Discounts; enter the settings listed below in theopened 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 documentdiscount to the invoice. (See the following screenshot.) On the Discount Details tab, you can seethe applied document discount.


Figure: Recalculated discounts for the invoice

3. On the Discount Codes form (AR209000), for the LCPC discount code, select the Exclude FromDiscountable Amount check box, and click Save.

4. On the Invoices and Memos form (AR301000), again select the invoice that you have createdfor the C000000004 customer for 1/1/2014. On the form toolbar, select Actions > RecalculatePrices and Discounts; in the opened Recalculate Prices and Discounts dialog, select the followingsettings and click OK:






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 linewith the SUPPORT item has been excluded from the discountable amount of the detail totalbecause you have excluded from the discountable amount the LCPC line discount, which appliesto 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 thefollowing screenshot), you can see that the document discount has been applied to $1220 ofthe Detail Total of $1705. The amount to which the document discount has been applied is theDetail 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 thedocument discount applies is $1705 - $485 = $1220.



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 boxand save your changes.

2. On the Invoices and Memos form (AR301000), again select the invoice that you have created forthe C000000004 customer for 1/1/2014. On the form toolbar, select Actions > Recalculate Pricesand Discounts, and in the opened Recalculate Prices and Discounts dialog, select the followingsettings and click OK:






In the line with CSTMZATION (shown in the following screenshot), the best available automaticline discount is 3% (the discount with the LCPC discount code that comes from the PARTNERcustomer price class). The LI discount code is now manual and therefore is not used in theautomatic 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 theDiscount Code box, as the following screenshot illustrates. Save your changes to the invoice.


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 discountpercent 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 ofselecting 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 followinginstructions:

1. Perform the following instructions to define the automatic group discount of 5%, which you giveto the customers assigned to the PARTNER customer price class if they purchase 5 or more hoursof the consulting and customization service:

a. On the Discount Codes form (AR209000), add a record for the group discount code, whichcan be applied to the group total depending on a combination of a customer price classand 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


The specified group discount code can be applied to the group total depending on acombination of a customer price class and a non-stock item.

b. On the Discounts form (AR209500), define the 5% group discount with the GCPC0Idiscount code as follows:

a. Select GCPC0I in the Discount Code box to create a discount with this code.

b. Specify the following settings:



• 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 thetable.

e. On the Discount Breakpoints tab, specify the following settings:





In this row, you have defined the 5% discount that you give to a customer of thePARTNER customer price class that purchases five or more hours of the CONSULT orCSTMZATION service, starting on 1/1/2014.

f. On the form toolbar, click Save and then click Update Discounts.

2. On the Invoices and Memos form (AR301000), again select the 000003 invoice that you havecreated. On the form toolbar, select Actions > Recalculate Prices and Discounts; enter thefollowing settings in the Recalculate Prices and Discounts dialog, click OK, and save yourchanges:






The 5% group discount has been applied to the $1220 group total of the CONSULT andCSTMZATION lines because their total quantity is 13, which is greater than 5. The total quantityof these lines meets the group discount condition: for each line, both the item and the customerprice class are ones that are required for the group discount. The document discount is appliedto the discountable amount, which equals the Detail Total minus the automatically excluded lineamounts minus the group discount total: $1705 - $485 - $61 = $1159. On the Discount Detailstab (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 averagediscount 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 > AccountsReceivable > Configuration > Setup). The average discount percent is equal to the total DiscountAmt. 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 theSkip Document Discounts check box, and save your changes.


4. On the Invoices and Memos form (AR301000), again select the 000003 invoice. On the formtoolbar, select Actions > Recalculate Prices and Discounts; in the Recalculate Prices andDiscounts dialog, specify the following settings, click OK, and save your changes:






The $10 document discount has been removed, as the screenshot below shows. Because thedocument 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 theinvoice is $61 and the Balance is $1644.00. The Balance amount equals $1705: the Detail Totalminus the Discount Total of the document.

If you want to remove a group or document discount from a certain document so that it willnever apply to this particular document (even after a user edits lines or recalculates the prices anddiscounts in the document, select the Skip Discount check box for the discount on the DiscountDetails tab. You can also add manual group and manual discounts to the document by using thistab.


5. Release the invoice and review the generated batch (see the following screenshot).


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. Thediscount total ($61), which includes the group and document discounts, is debited to the salesaccount; you can specify the discount (expense) account for the customer to post the discounttotals to it. Line discounts were applied to individual lines of the document and deducted fromthe line amounts before the detail total was calculated. Therefore, the line discounts aren'tincluded in any posted amounts.

| Lesson 25: Customer Payments by Credit Card | 188

Lesson 25: Customer Payments by Credit CardAcumatica 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 diagrambelow shows how the payments are processed across Acumatica ERP, the payment gateway, and thecompany'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 themerchant account in the system. Then, to process a payment in the system, you need to do thefollowing:

1. You process the credit card payment through the gateway. You can authorize, capture, void, andrefund the CC payment.

You can process credit card payments in the Accounts Receivable module of the Finance suite andin the Sales Orders module of the Distribution suite of Acumatica ERP. Also, you can develop yourown Acumatica ERP plug-in to integrate the credit card processing in the system with a paymentgateway other than Authorize.Net.

For example, suppose that you have authorized and captured $100 from a credit card. Theinformation and status of the credit card processing transactions that have been executed at thepayment gateway appear in the details of the Accounts Receivable payment. After the credit cardpayment is captured, you release the AR payment in the system and the following transaction isgenerated:

• Merchant account Dr, $100

• Accounts Receivable Cr, $100


2. You receive a daily merchant statement that shows the settlement amount deposited to yourbank account by the end of the operating day. To reconcile the settlement amount with the creditcard payments, you can review the credit card processing transactions in the system and in themerchant 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 thebank account in the system. On release of the deposit, the system generates the followingtransaction:

• Merchant account Cr, $100

• Bank account Dr, $100

In the bank statement, the settlement also appears as a deposit in the account; therefore, youcan more easily reconcile the bank account balance after you have processed the deposit in thesystem.

In this lesson, you will configure the system for processing credit card payments and then see how toprocess 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 102050-SOFT cash account, which represents the merchant account in the system, asfollows:

a. On the Chart of Accounts (GL202500; Finance > General Ledger > Configuration >Manage) form, add the 102050 asset account and specify the following settings:

• Account: 102050

• Account Class: CASHASSET

• Type: Asset

• Description: Merchant Account

You have to define one asset account for each currency in which you accept credit cardpayments to the merchant account. In this course, you use only one currency, so youaccept credit card payments in only one currency.

b. On the Cash Accounts form (CA202000; Finance > Cash Management > Work Area >Manage), create the 102050-SOFT cash account for the merchant account of the SoftwareInc. company with the following settings:


• Account: 102050 (Merchant Account)


• Branch: SOFT


• 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 processdeposits in the system from the merchant account to the bank account for easierreconciliation 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 followingsettings:

• Proc. Center ID: AUTHNETUSD

• Name: Authorize.Net USD



• 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 theconnection timeout for the tokenized plug-in is defined by the TIMEOUT parameter on theSettings tab.

The processing center represents the connection to the payment gateway for the creditcard processing transactions in a certain currency. The cash account specifies thecurrency in which the system will make the authorization and capture transactions tothe gateway. The selected Payment Plug-In is a built-in credit card processing plug-inthat interacts with the payment gateway in PCI DSS compliant mode. In this mode, thecustomer 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 thecredit card is neither stored in Acumatica ERP nor transferred between the system andthe payment gateway.

b. To use the payment gateway in test mode, on the Settings tab, specify the connectionsettings listed in the table below and save the changes.

Test mode connection settings for Authorize.Net

ID Value

APIURL https://apitest.authorize.net/soap/v1/Service.asmx

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 createa sandbox account at http://developer.authorize.net/#sandbox (see the following


screenshot) with the Card Not Present account type. After you create an account, you willget 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 LoginID 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 sandboxAuthorize.Net Merchant Interface (https://sandbox.authorize.net/), where you can reviewthe transactions that have been processed at the gateway and manage the registered creditcards.

Figure: Credentials for payment processing

For information on settings for live mode, see the Setup of Card Payment Processing topicin the Acumatica ERP User Guide.

c. After you have specified the credentials, click Test Credentials to check the connectionsettings.

d. Configure the Acumatica ERP website for HTTPS connections.

The secure connection with a Secure Socket Layer (SSL) certificate is required for makingtransactions to the Authorize.Net payment gateway through the Acumatica ERP website.For information on how to configure the website for HTTPS, see the Configuring theWebsite for HTTPS topic.

The connection to the payment gateway is ready. Now you have to create a payment method forcredit 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 inAcumatica ERP by card payment system, you could create a payment method for each payment systemsupported by the gateway and specify the same merchant account for all payment methods. To create apayment 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 aVisa credit card:


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 withthe following settings:



• Default: Selected

d. On the Allowed Cash Accounts tab, add the 102050-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: 000000

You have configured automatic assignment of payment reference numbers to ARpayments that have the VISA payment method and the 102050-SOFT cash accountbecause you have to number AR payments in the system. The payment reference numberwill be automatically inserted into the Payment Ref. box of the AR payment when youselect the VISA payment method and the 102050-SOFT cash account for a payment. Thefirst payment will get 000001 in Payment Ref.

2. On the Cash Accounts form (CA202000), select the 102000-SOFT cash account. In the tableon the Clearing Accounts tab, add a row for the 102050-SOFT cash account with the PaymentMethod and Charges Type columns empty. MyBank will deposit funds from the merchant accountto the 102000-SOFT checking account. To be able to process the deposits in the system, youhave specified the merchant account as the clearing account for 102000-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 Visacredit card. For the Visa card of each of these customers, you have to create the customer paymentmethod 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 Imagecustomer:

a. On the Customers form (AR303000; Finance > Accounts Receivable > Work Area >Manage), select the C000000007 (Bestype Image) customer, and on the table toolbar ofthe Payment Methods tab, click Add Payment Method.


b. On the Customer Payment Methods form (AR303010; Finance > Accounts Receivable >Work Area > Manage) that appears for adding the customer payment method, specify thefollowing settings:


• Payment Method: VISA



c. On the table toolbar of the Payment Method Details tab, click Create New to link thecustomer'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 andclick Save:

• Card Number: 4007000000027 (the demo Visa card number you have received withyour 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: 12300 (any code; required for Visa)

The card information is sent from the browser directly to the payment gateway. Whenyou create the first payment method of a customer, the payment gateway generatesthe Customer Profile ID, which is then used to identify the customer across the paymentgateway and your system. As soon as you enter the customer's card information, thepayment gateway generates the Payment Profile ID, which is then used to identify thecustomer's card across the payment gateway and your system. The Customer ProfileID and the Payment Profile ID are saved to the customer payment method instead ofany information of the card. The Card/Account No. box displays the card identifier in thesystem, which consists of the payment method ID and the last four numbers of the creditcard. This format complies with PCI DSS.

To add another Visa card of the same customer, you have to create another paymentmethod of this customer and click Create New on the Payment Method Details tab to linkanother 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 theVisa card of the C000000009 (Precision Photos) customer in the similar way as you do this forthe Visa card of the Bestype Image customer. (You can use the ****-****-****-8888 Visa cardnumber that you got with your sandbox account.)

If you delete a card through a merchant interface, you have to manually delete the correspondingcustomer payment method in the system. If you delete a customer payment method that represents acustomer's card in the system, Acumatica ERP will automatically request that the gateway delete the cardon its side if you select the Synchronize Deletion with Processing Center check box for the processingcenter 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.


This setting makes the credit card processing steps required for Accounts Receivable paymentsso that you cannot release a card payment in the system until you capture the paymentthrough the gateway and the payment is automatically released in the system on capture. Werecommend that you select the Integrated CC Processing check box if you accept credit cardpayments. If the check box is cleared, you can release the card payments independently fromprocessing through the gateway.

2. Set the business date to 2/1/2014.

3. On the Payments and Applications form (AR302000; Finance > Accounts Receivable > Work Area> Enter), do the following to capture the $8747.66 payment for the INV000042 invoice from theVisa card of the Bestype Image customer:

a. Create a payment with the following settings:

• Type: Payment

• Customer: C000000007 (Bestype Image)


• Card/Account No: VISA:****-****-****-0027




• Payment Ref.: 000001 (assigned automatically)


• Description: Credit card payment


b. On the Documents to Apply tab, select the INV000042 invoice with the $8747.66 amountpaid, and on the form toolbar, select Actions > Capture CC Payment.

The credit card payment has been successfully captured through the gateway andreleased in the system. On the Credit Card Processing Info tab (shown below), you cansee 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 paymentgateway within the specified period of time, you can use the Payment Processing Logform (AR406500; Finance > Accounts Receivable > Work Area > Explore). To review thetransactions for a certain credit card, you can use the Payment Method Transaction Historyform (AR406000; Finance > Accounts Receivable > Work Area > Explore) and select thecard in the Identifier box on the form.

4. On the Payments and Applications form (AR302000), create a payment with the followingsettings in order to capture the payment for the invoice of $25780:

• Type: Payment


• Customer: C000000009 (Precision Photos)


• Card/Account No: VISA:****-****-****-8888




• Payment Ref.: 000002 (assigned automatically)


• Description: Credit card payment


• Documents to Apply, Document Type: Invoice, Reference Nbr.: INV000043, Amount Paid:25780.00

5. Review your Authorize.Net sandbox account (https://sandbox.authorize.net/). Assumingthat there are no other transactions in your merchant account, in the merchant interface ofAuthorize.Net, you will see the $34527.66 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 cardis selected in the default payment information of the invoice. Then you can capture multiplepayments at once by using the Capture Payments form (AR511500; Finance > Accounts Receivable> Processes > Credit Card Processing). For regular processing, you can schedule the paymentgeneration 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 $34527.66 settled to your bank accountfor the 2/1/2014 operating day. Perform the reconciliation of the merchant account balance in thesystem as follows:

1. On the Reconciliation Statements form (CA302000; Finance > Cash Management > Work Area >Enter), select the 102050-SOFT cash account.

2. Create the reconciliation statement with the Reconciliation Date set to 2/2/2014 and theStatement Balance set to 34527.66.

3. Select the Reconciled check box for both transactions in the table and save your changes. TheDifference becomes $0.00, as you can see in the following screenshot.

Figure: Reconciliation statement for 2/2/2014


The merchant account balance is reconciled with the statement balance when the ReconciledBalance and the Statement Balance are equal for the selected transactions in the reconciliationstatement, thus the reconciliation is complete. For the selected transactions, the ReconciledBalance is equal to the Statement Balance. Therefore, the balance of the merchant account isreconciled with the bank statement.

4. Release the reconciliation statement.

6. Processing the Settlement to the Bank Account

Make the $34527.66 deposit from the 102050-SOFT to the 102000-SOFT cash account in the system asfollows:

1. On the Bank Deposits form (CA305000; Finance > Cash Management > Work Area > Enter),create a deposit with the following information:



• Document Ref.: 3635585 (you can specify the number from the merchant statement)



• Description: Settlement

2. On the Payments tab, add the two credit card payments that you have processed on 2/1/2014 tothe deposit.

Figure: Deposited credit card payments

The total of captured payments in the system must equal the settlement amount shown in themerchant statement. The settlement amount is deposited from the merchant account to thebank account by the end of the operating day.

You can process the merchant account fees and the payment gateway fees as the disbursementcash entries in the merchant account in the system. Alternatively, you can create the vendoraccounts for the merchant account provider and the payment gateway provider, and process thefees as AP bills.

3. Release the deposit.

On the Cash Account Transactions form (CA303000; Finance > Cash Management > Work Area >Explore), select the 102000-SOFT cash account and review the transactions from 2/1/2014 through2/28/2014.


You can see the $34527.66 deposit transaction on 2/2/2014 in the cash account. (See the followingscreenshot.) You will be able to reconcile the deposit transaction with the next bank statement for2/28/2014.

Figure: Transactions for 102000-SOFT cash account for February 2014

Related LinksCard PaymentsSetup of Card Payment Processing

http://partner.acumatica.com/Main.aspx?CompanyID=USA&ScreenId=WP000000&PageID=df8b048c-059f-4ef3-9174-6d8d1dab91e0

http://partner.acumatica.com/Main.aspx?CompanyID=USA&ScreenId=WP000000&PageID=f461ef05-803e-4a72-8178-97303f54e9a9

| Configuring the Website for HTTPS | 198

Configuring the Website for HTTPSThis 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 transactionsto the Authorize.Net payment gateway through the Acumatica ERP website. The following instructionsexplain 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 self-signed 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:

1. Create a self-signed certificate as follows:

a. In the Control Panel, open Administrative Tools > IIS Manager (Internet InformationServices).

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.

2. 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 justcreated (Browse*:443(https)). The browser will display an error page because the self-signedcertificate was issued by your computer, not by a trusted Certificate Authority.

5. Click Continue to this website (not recommended).

6. The HTTPS website opens.



• 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.

| 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 balancesfor all periods of the 2013 financial year. For Computers Inc., you will import the general ledgertransactions from the previous system into Acumatica ERP. After that, you will import the vendor andcustomer records to the system and then import the open Accounts Payable and Accounts Receivabledocuments of the Software Inc. company for 12-2013.

In this part, you will start from the completely configured system with preloaded import scenarios. Asthe result of the lessons of this part, the data that was used in the preceding lessons of this course willbe migrated to the system.

The lessons of this part should be completed on the F200TBImported database.

| Company Story: Data Migration | 201

Company Story: Data MigrationThe companies have migrate to Acumatica ERP from another system and started using Acumatica ERPin January 2014.

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 thecompany'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 12-2013 period

• Customer records

• Vendor records

The Software Inc. company began operating in January 2013, and the company needs to have thebalances for all periods of 2013 in the new system. For training purposes, you will import the trialbalances for only the last two financial periods of the year 2013 for the company (11-2013 and12-2013). (The database that you were using in the previous parts of the course includes the trialbalances of all periods of 2013 for the Software Inc. company.) The Computers Inc. company started itsoperations 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 asingle list of vendor records and customer records for both companies. You will import the customer andvendor records with their IDs as exported from the old system, and then enable auto-numeration sothat 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. Ifyou don't want to import particular documents of a vendor or customer, you can import just the balanceas 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 AccountsReceivable 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 tostarting Acumatica ERP use—that is, 12-2013. After the import procedure completes, you have to verifythe imported data. In the last lesson of this part, you will import a few unreconciled transactions for thechecking account of the Software Inc. company and the last reconciliation result for the account so thatthe 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 systemby using the provided import scenarios.

| Preparing Import Scenarios | 202

Preparing Import ScenariosThis 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 importscenarios. The import scenarios have been preconfigured for this course and provided in the trainingdatabase. 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 eachrecord of the imported data as if the data is entered manually on the specified form. You can constructan import scenario for any data entry form. You can also use import scenarios for updating data in theexisting records. To prepare an import scenario, you have to create a data provider and compose theimport scenario mapping.

Each import scenario refers to external fields that are described in a certain data provider. The dataprovider defines the data source type (Excel), the name of the spreadsheet that should be used for thedata import, and the list of the columns on the spreadsheet and their data types. Data providers aredefined 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 ImportScenarios form (SM206025; System > Integration > Manage). The import scenario defines the mappingof the source columns to the destination fields of the entry in the system. The Mapping tab holds thelist of steps of the scenario to import the records into the system as if each record is manually enteredthrough the corresponding data entry form—for example, the GL transactions import scenario importsrecords as they would be entered through the Journal Transactions form (GL301000). For each importedrecord, the system executes the mapping steps one after another in the order in which they are listedon the Mapping tab. In the Source Field/Value column, for each target object, you can specify anexpression that defines the value to be inserted into the target object. If you don't specify a field in themapping, the system will use the default value for the field—that is, the system will insert the defaultvalue as it would insert the value when a user manually entered the data on the form. If you specify afield in the mapping but do not provide a value for it in the source data, the system will insert an emptystring or 0 into the destination field.

For more information on the constants and formulas that are used to specify values in the predefinedimport 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, whichdefines how the data from the source file should be imported as batches of transactions into thesystem. 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)


• Transaction Date

• Post Period

• Originating Branch (if you use more than one branch in the system)

2. 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 thefollowing 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 defineshow 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 theimported vendor accounts that belong to this vendor class. For the vendor class, you can also specifyother default information, including the default AP account and expense account that are used for thevendor. In the example of this course, you will use the default AP account, payment method, cash


account, cash discount account and subaccount, and prepayment account inserted from the vendorclass.

You don't have to import the vendor balances, because they are automatically calculated from the balanceof 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 theTrue value to be inserted into the 1099 Vendor field of the vendor. Additionally, you can import the numberof the default box on Form 1099-MISC in which you are going to report most of the amounts paid to thevendor. The list of 1099 boxes is defined on the 1099 Settings tab of the Accounts Payable Preferencesform (AP101000). Thus, you will import the V000000087 and V000000090 vendor accounts with the Box7-Nonemployee Compensation category. Also, you can import (or specify later in the vendor account) therecipient's identification number—for example, the social security number (SSN) or individual taxpayeridentification number (ITIN), to be printed on Form 1099-MISC. The recipient's identification number isspecified in the Tax Registration ID box on the Purchase Settings tab of the Vendors form (AP303000) forthe 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 sourcefile should be imported as AP documents in the system. You will use the Import AP Documents importscenario provided for this course.

You can import any AP documents, including bills, debit and credit adjustments, and AP checks. Foreach vendor, you can import one document or multiple documents, and each document can consistof any number of detail lines. For each document line, you have to create a row in the Excel file. Inthe row, you specify the document summary information and the document line information to beimported. Document lines that have the same document summary information are imported into asingle document in the system. The following parameters are required for every document line to beimported:

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 isnot used in this course)


• Vendor Reference Number (if the Require Vendor Reference check box is selected onthe 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 creatingor 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 thevendor account)

2. 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 creditterms of the original document. For example, to the 12-2013 post period, you can import an open bill withthe document date of 11/1/2013 and the credit terms of 3/7, net 30 days to have this information in thesystem.

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, thesystem will assign the reference number according to the APBILL numbering sequence that is specifiedfor 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:


• 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 automaticallyinserted into the imported customer accounts that belong to this customer class. In the example ofthis course, you will use the default statement cycle ID, sales account, cash discount account, and ARaccount inserted from the customer class.

Customer accounts, as well as vendor accounts, must have unique IDs in the system. You can extenda customer account to be a vendor account by clicking the Actions > Extend to Vendor action on theCustomers form (AR303000) Similarly, you can extend a vendor account to be a customer account byclicking the Actions > Extend to Customer action on the Vendors form (AP303000.

You don't have to import the customer balances, because they will be automatically calculated from thebalance 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 ofdetail lines. For each document line, you have to create a row in the Excel file. The following parametersare required for every document line to be imported:

1. Invoice Summary (see the Target Object column on the screenshot below):

• Document Type


• 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 creatingor 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)

2. Document Details:

• Destination branch (if you use more than one branch and the Multi-Branch Support featureis 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 theExcel file. Because auto-numbering is disabled in the ARINVOICE numbering sequence, the system willimport the documents with their reference numbers taken from the INVOICE REF NBR column. In theexample of this course, you have AR invoices of one line and multiple lines.

| Constants and Formulas in Import Scenarios | 208

Constants and Formulas in Import ScenariosThis 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 verystraightforward scenario, prepare the Excel file with all data in the appropriate format, and simply mapthe 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 anexternal system for import into the target system. To do this, in the mapping of the source columns tothe destination fields in import scenarios, you can use constants, formulas, and fields of the destinationobject. Below are the notes about the mapping examples that are used in the import scenarios of thiscourse.

Names of Excel Columns

You can use letters, numbers, spaces, and underscore (_) symbols for column names in Excel. Do notuse periods in Excel column names because a period is a reserved symbol for formulas in import andexport scenarios. Thus, Original Batch Number is a valid name of an Excel column, but Origin. BatchNumber is invalid.

Calculated Values

If you prepare data for one-time import, you can calculate everything in the Excel file and use a verysimple import scenario that only maps the destination fields to columns in the Excel file, as is done forAP and AR documents in the import scenarios. You can import data from Excel columns of any datatype, but you cannot import from formulas. The system doesn't import a value from the column thatcontains an Excel formula (such as =E3+F3) and leaves the destination field empty. If you use formulasin Excel, next to a column with formula, add another column with values copied from the calculatedcolumn. Then map the value column to the destination field in the import scenario.

Look at the DOC DESCRIPTION column in the OpenAPBills_12-2013_SOFT.xlsx file. This columncontains string values and is mapped to the destination Description field in the import scenario for APdocuments (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. 7670 vendor V000000050

The descriptions were first calculated in the DOC DESCRIPTION (formula) and then copied to the DOCDESCRIPTION column for import. Thus, the Description destination field of AR and AP documents ismapped as shown on the screenshot below.


Figure: Description field in the import scenario

Composed Strings

If you compose a mapping formula that concatenates values from a number of source columns, youhave to check each column for null as is done for the Transaction Details > Transaction Descriptiondestination field in the import scenario for GL transactions. The following mapping formula inserts astring into the destination field, which consists of the Transaction Description taken from the sourcecolumn and the appended Imported text. If the Transaction Description source column is empty, theonly Imported text is inserted into the destination field. If you didn't check the Transaction Descriptionfor null in the mapping formula, the system would insert empty strings into records for which theTransaction 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 importscenario. Look at the COUNTRY column in the VendorsMasterFile.xlsx Excel file. For vendors locatedin the United States, this column is empty in the file. In the import scenario, you specify that thedefault country that has been inserted from the vendor class should remain in the destination field if thecountry is not specified for the vendor record in the Excel file. To specify the default country source inthe import scenario, you use the following formula in the mapping of the Country field to the COUNTRYcolumn 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 thevalue that already exists in the destination field. If the COUNTRY column isn't empty, the country fromthe 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 areference to the internal field that represents the value in the Country destination field of a vendorrecord being imported into the system. In the Expression Editor of the mapping value, you can view thelist of internal fields that you can use to refer to the destination fields. According to the scenario, thevendor class is inserted before the country, and the system automatically updates the vendor's countryafter the vendor class has been specified. Later in the scenario, the system updates the country forthose 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 1099vendors, you have to specify the value of the 1099 Vendor check box for every imported record. Most


vendors are not 1099 vendors. Therefore, you specify the default False value for the 1099 Vendor checkbox in the import scenario by using the following formula in the mapping.

=IsNull([1099 VENDOR], 'False')

| Cross-Check Recommendations for Data Verification | 211

Cross-Check Recommendations for Data VerificationThis 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 isequal 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 Summaryreport (AP655000; Finance > Accounts Payable > Reports > Audit). For customer accounts, youcan use the Customer Summary report (AR650500; Finance > Accounts Receivable > Reports >Audit).

• Randomly verify information imported into a customer account and vendor account. Verify thefirst 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 7chosen at random. You can review the information of an imported vendor account by using theVendors form (AP303000; Finance > Accounts Payable > Work Area > Manage) and by using theVendor Details report (AP655500; Finance > Accounts Payable > Reports > Audit). For customeraccounts, you can use the Customers form (AR303000; Finance > Accounts Receivable > WorkArea > 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 isequal 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 Registerreport (AP621500; Finance > Accounts Payable > Reports > Audit) to see already releaseddocuments. To review the Accounts Receivable documents, you can use the AR Edit report(AR611000; Finance > Accounts Receivable > Reports > Audit) to see not yet released documentsand the AR Register report (AR621500; Finance > Accounts Receivable > Reports > Audit) to seealready released documents.

• Make random verification of the amounts of the imported AP and AR documents. To review thedocument amounts, use the reports listed above.

| Lesson 26: Import of Trial Balances | 212

Lesson 26: Import of Trial BalancesWhen you migrate the financial data to the system, you can import trial balances or general ledgertransactions. If you import general ledger transactions for a period, you don't have to import the trialbalance for this period because the trial balance is automatically calculated by the transactions in thesystem.

The Software Inc. company operates starting in January 2013. For training purposes, you will importthe trial balances for the 11-2013 and 12-2013 financial periods only. To do this, you need to performthe following tasks:

1. Preparing the data file to be imported

2. Importing normal balance for 11-2013

3. Import reversed balance for 12-2013

1. Preparing Data Files to Be Imported

Review the provided TB_Upload_11-2013_12-2013.xlsx file that contains trial balances for 11-2013 and12-2013.

You can import trial balances into the system from one Excel or CSV file or multiple files. The providedExcel 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 Excelfile.

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 importedbalances of income and expense accounts.

4. The account balance can be split by subaccounts.

If there is no specific subaccount for the account, specify 000-00-00. (You should have thesubaccounts' segment values defined in the system). If you don't use subaccounts and theSubaccounts feature is not enabled in the system, then the Subaccount column is not requiredfor import.

5. In the YTD Balance column, you can specify the normal balances of accounts, or reversedbalances.

Normal balances are the debit balances of asset and expense accounts and the creditbalances 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). TheTB_Upload_11-2013_12-2013.xlsx file contains the normal balances of accounts for the 11-2013period. To upload normal balances, you have to set the Sign of the Trial Balance option toNormal on the General Ledger Preferences form (GL102000; Finance > General Ledger >Configuration > Setup). Normal balances are used by default.

For the 12-2013 period, the TB_Upload_11-2013_12-2013.xlsx file contains the reversedbalances of accounts. In the reversed balances, the balances of asset and expense accountsremain normal, while the balances of liability and income accounts are reversed. If the creditbalance of liability and income accounts is positive, then you have to specify the balance with thenegative sign. To upload reversed balances, you have to set the Sign of the Trial Balance optionto Reversed on the General Ledger Preferences form (GL102000).


The Sign of the Trial Balance option also affects the representation of the Trial Balance reports andinquiries. 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 tohave 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, releaseand post the generated batch, verify the imported balances, and then import the next trial balance. Youhave to import the trial balances one by one because each next General Ledger batch is generated inthe amount of the difference between the trial balance for the previous period and the current importedbalance. If you skip a period, you might get an incorrect batch generated from the imported trial balancefor the next period.

If you have incorrectly imported the trial balance for a period, you can again import the correct trialbalance; you don't necessarily have to reverse the incorrect batch.

2. Importing Normal Balances for 11-2013

To upload normal balance, make sure the Sign of the Trial Balance option is set to Normal on theGeneral Ledger Preferences form (GL102000). Then, import the Software Inc. trial balance for 11-2013as follows:


2. On the Trial Balance form (GL303010), create a trial balance import entry with the followingsettings:

• Branch: SOFT (Software Inc.)

• Import Date: 11/30/2013

• Period: 11-2013

• Description: TB import 11-2013

3. Upload the TB_Upload_11-2013_12-2013.xlsx file, and map the source columns to thedestination columns as follows:

• Account to Account

• Subaccount to Subaccount

• YTD Balance 11-2013 Normal to YTD Balance

If you have uploaded incorrect balances, you can delete all records and re-upload the balancesfrom the file.


4. 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 recordsat once. At this time, you can also merge the balances of duplicate account-subaccountpairs, 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-00-00 to000-00-00 in the needed cell and click Save.

• To correct the error with a missing subaccount, enter 000-00-00 in the empty cell inthe Imported Subaccount column and save your changes.

• To correct the error with an incorrect account number, change the 799000 accountto 745000 and save your changes.

• Remove the last error entry, which is the balance calculated in the Excel file forverifying 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 Savebefore retrying the validation.

c. 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 thatthe trial balance can be released.

5. Release the trial balance import entry.

The trial balance entry gets the number 000001 (as you can see in the following screenshot)according to the TBIMPORT numbering sequence specified in the Import Numbering Sequence boxon the General Ledger Preferences form (GL102000).

Figure: Trial balance for 11-2013 released

During the release of the trial balance import entry, the system generates a GL batch. Foreach asset and expense account, the system generates a debit entry if the imported balanceis positive or a credit entry if the imported balance is negative. For each liability and incomeaccount, the system generates a credit entry if the imported balance is positive or a debit entryif the imported balance is negative.


6. Review the generated GL batch on the Journal Transactions form (GL301000; Finance > GeneralLedger > 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 615000 - Small Balances Write-Off Expense account, the system hasgenerated the credit entry in the amount of $80. Therefore, the batch total is $1,401,238 (seethe 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 11-2013, which is shown in the following screenshot.


Figure: Trial Balance Detailed for 11-2013 for SOFT

The trial balance shows the balance of the Year-to-Date Net Income account calculated fromthe imported data. The total YTD Net Income is included in the Liability Total; therefore, theAssets Total is equal to the Liability Total in the report. The report shows the normal balancerepresentation of accounts.

3. Importing Reversed Balances for 12-2013

For the 12-2013 period, the balances of accounts are reversed in the TB_Upload_11-2013_12-2013.xlsxfile. To upload the reversed balances, set the Sign of the Trial Balance to Reversed on the GeneralLedger Preferences form (GL102000) and save the changes. Then import the Software Inc. trial balancefor 12-2013 as follows:

1. Create a trial balance import entry on the Trial Balance form (GL303010; Finance > GeneralLedger > Work Area > Enter) with the following settings:

• Branch: SOFT (Software Inc.)

• Import Date: 12/31/2013

• Period: 12-2013

• Description: TB import 12-2013

2. Upload the TB_Upload_11-2013_12-2013.xlsx file, and map the source columns to thedestination columns as follows:

• Account to Account

• Subaccount to Subaccount

• YTD Balance 12-2013 Reversed to YTD Balance


3. Validate the uploaded entries and correct the errors as you did while importing the 11-2013balance.

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 wereuploaded from the file.

4. Review the Exceptions tab.

Records on the Exceptions tab do not reflect mistakes. When you import the second and nexttrial balances, this tab shows the accounts that have a non-zero balance for the previous periodin the system, but their balance for the currently selected Period hasn't been uploaded from thefile. On release of the trial balance, for each account listed on the Exceptions tab, the systemgenerates a transaction that makes the account balance zero for the period you are importingthe trial balance for.

If the Exceptions tab is empty, this means all accounts that have a non-zero balance in thesystem are listed on the Transaction Details tab for import. If you have accounts appearing onthis tab, make sure the balance of these accounts should be 0 for the period you are importingthe trial balance for. If the balance should be non-zero, verify the account balances in the Excelfile 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 ofaccounts for the period. When you import the trial balance for the second financial periodand subsequent periods, the system generates journal entries in the amount of the differencebetween 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 eachgenerated batch and post the transactions before you import the trial balance for the nextperiod; otherwise, the transactions might be generated incorrectly.

Again, for each asset and expense account, the system generates a debit entry if the importedbalance (or difference) is positive or a credit entry if the imported balance (or difference) isnegative. However, because you have uploaded the reversed balances, for each liability andincome account, the system generates a credit entry if the imported balance (or difference) isnegative 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 importedtrial balance.

7. Verify the imported trial balance by reviewing the Trial Balance Detailed report (GL632500) forthe SOFT branch for 12-2013, shown in the following screenshot.


Figure: Trial Balance Detailed for the SOFT branch for 12-2013

In the report, the positive credit balances of the liability and income accounts are shown withthe negative sign, because the Sign of the Trial Balance option is set to Reversed on the GeneralLedger Preferences form (GL102000). The YTD Net Income account doesn't show up in thereversed 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 theTrial Balance Summary for 12-2013. The trial balance for the last period of 2013 should be asshown in the following screenshot.

Figure: Trial balance for SOFT for 12-2013

| Lesson 27: Import of General Ledger Transactions | 219

Lesson 27: Import of General Ledger TransactionsThe Computers Inc. company started operating in December 2013. Suppose that you have no branchinformation in the transactions exported from the previous system. In this case, you can import thetransactions 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 GeneralLedger transactions of the Computers Inc. company for the 12-2013 period. (Constructing importscenarios is outside of the scope of this course.)

Perform the following steps:

1. Import the Computers Inc. company's transactions for the 12-2013 period from the providedGL_Transactions_12-2013_COMP.xlsx file into the system as follows:


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 theGL_Transactions_12-2013_COMP.xlsx file.

The structure of the uploaded Excel file must match the structure defined in the dataprovider and used in the import scenario. The structure includes the name of thespreadsheet, the names of the columns in the file, the data type in columns, and theorder of columns on the spreadsheet. If you have changed the file structure, you have toupdate the data provider and then update the import scenario, if needed. Only then youcan upload the updated Excel file to the Import by Scenario form (SM206036) to importthe data.

d. Click Prepare to upload the data from the file.

Before running the import process, you can review the uploaded data on the PreparedData tab and manually correct any value, if needed.

To remove incorrectly uploaded data from the table on the Prepared Data tab and re-upload the data from the file, click Roll Back on the History tab. Then you can upload a newversion of the file and click Prepare on the form toolbar to upload the data from the updatedfile.

e. Click Import to import the transactions from the Excel file into the system. The recordsthat 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 thetable, so that you can review the errors.

To cancel the filter and view the list of all uploaded records, select Clear Filter for theProcessed column.

A selected check box in the Processed column means that the record has beensuccessfully imported into the system. Not all records were imported, so the status isPartially Processed. You see the error in the last record imported from the Excel file: therow 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 fromprocessing, click Save on the form toolbar, and click Import again.


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 exportedfrom 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 havebeen generated with the Balanced status, which was set by the import scenario. Before you postthe transactions, you can edit the information in the batches' summary area and in the journalentries, if needed.

When you run the import process and get the Save button is disabled error, one possible reason isthat 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 batchesare automatically numbered according to the BATCH numbering sequence. If you import GLtransactions into a system that already has GL batches, we recommend that you continuethe numbering. To do this, import the transactions grouped into batches and assign a newbatch number according to the numbering sequence you are already using for batches. Thetransactions can be grouped into batches by a unique batch number that doesn't exist in thesystem. You can import transactions grouped by their original batch number and import theoriginal batch number into the reference number of a journal entry and into the description ofthe batch, as is demonstrated in this course.

If there are no GL batches in the system yet, you can import transactions with their original batchnumber as the batch number in the new system. To do this, you have to enable manual numberingfor GL batches, import the transactions with their original batch number, and then configure thenumbering 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 batchnumber, 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 Numberfield of the Batch Summary target object, which represents the batch in the system. While


uploading a transaction, the system tries to find an existing GL batch that has the same batchnumber as the one specified for the transaction in the Original Batch Number column in the Excelfile. If the GL batch already exists, the system tries to add the transaction (journal entry) to theexisting batch. If a GL batch with such number doesn't exist, the system creates a new GL batchand 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. Thetransactions have been posted to the ACTUALCOMP ledger, to which the transactions of theWEST branch are posted.

If you have posted an incorrectly imported transaction, you can reverse the batch and re-importthe transaction again.

4. Review the WEST transactions posted to 12-2013. To do this, run the Transactions for Periodreport (GL633000; Finance > General Ledger > Reports > Balance) with the followingparameters:


• Branch: WEST



The generated report is shown in the following screenshot.

Figure: Transactions for 12-2013 period for WEST branch

You can also review the Western Office (WEST) trial balance for 12-2013 by using the TrialBalance Summary report (GL632000; Finance > General Ledger > Reports > Balance) andTrial Balance Detailed report (GL632500; Finance > General Ledger > Reports > Balance). Inthe trial balance, the total debit turnover by all accounts must equal the total credit turnover:$56,892.62. You can use the Reversed representation of the trial balance to view these totalsor check that the asset total turnover plus liability total turnover is equal to $56,892.62 for theNormal representation of the trial balance.

| Lesson 28: Import of Vendors | 222

Lesson 28: Import of VendorsThe 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 tocontinue from the last imported vendor ID. You will use the preconfigured Import Vendors scenario. Thevendor accounts will be imported from the VendorsMasterFile.xlsx file along with their IDs from the oldsystem.

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 theImport 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 intothe system. If you have corrected a value, you have to click Save before you run the importprocess. Otherwise, the change won't take effect, and the system will try to import the oldvalue.

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 ofvendor accounts that belong to this vendor class, the values of the class for any fieldsmissing 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 tothe file so you could gain experiencing correcting data, and retry the import:

• To correct errors in account numbers, change 750000 to 745000 in the neededcells, and save your changes.

• To correct the missing vendor class ID, enter DEFAULT in the empty cell, and clickSave.

• 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 thecorrected record.

2. After all vendor accounts are successfully processed, review the imported records by using theVendors 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 thesystem. Note that for the V000000007 and V000000008 vendors, the 745000 - Utilities Expenseaccount has also been inserted. The V000000073, V000000087, and V000000090 vendors havebeen 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'tyet initiated in the system. The first document that you create or import into the system for thevendor 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 startingfrom V000000092:

a. On the Numbering Sequences form (CS201000; Configuration > Common Settings >Common Settings), create a numbering sequence (see the screenshot below) with thefollowing settings and leave the default values for the other settings:

| 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 allbranches)

• Start Number: V000000001

• Last Number: V000000091

Figure: The VENDOR numbering sequence

b. On the Segmented Keys form (CS202000; Configuration > Common Settings >Segmented Keys), select the VENDOR segmented key, and specify the following settingsfor the auto-numbering of new vendor IDs:

• Numbering ID: VENDOR

• Segment 1, Auto Number: Selected

c. On the Vendors form (AP303000), create a vendor with the following settings to makesure that it gets the next automatically numbered ID when you save it:

• Vendor ID: V000000092 (inserted automatically when you save the vendor account)

• Vendor Name: Effective Advertisements, Inc.

• City: San Francisco


• GL Accounts, Expense Account: 610000 (Advertising Expense)

• GL Accounts, Expense Sub.: 000-00-00

| Lesson 29: Import of Open Accounts Payable Documents | 224

Lesson 29: Import of Open Accounts Payable DocumentsIn this lesson, you will import the open Accounts Payable bills for 12-2013 for the Software Inc.company.

Before you import any AP documents for a financial period, make sure the total balance of opendocuments on each AP account is equal to the balance of the AP account according to the trial balancefor 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 ofthe AP account has been imported in Lesson 26: Import of Trial Balances as a part of the trial balancefor 12-2013. After the transaction is reversed, you will have the correct balance of the AP account in thetrial balance for 12-2013 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 12-2013 into the system as describedbelow:

1. Create the 999999 - Migration Clearing Account by specifying the following settings on the ChartOf Accounts form (GL202500; Finance > General Ledger > Configuration > Manage):

• Account: 999999

• Account Class: AP

• Account Type: Liability


• Description: Migration Clearing Account

2. On the Accounts Payable Preferences form (AP101000), clear the Validate Document Totals onEntry check box to disable the requirement that the user enter the document's control total; thischeck 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 AccountsPayable Preferences form (AP101000) and then select the check box again after the import iscomplete. When the check box is cleared, new documents are created with the Balanced status andcan be released right after you have imported and verified them. Alternatively (as is done in theexample presented in this lesson), an import scenario instruction can be added to clear the Holdcheck box for every imported bill so that the bill gets the Balanced status and you don't need tochange the Hold Documents on Entry setting.

3. Review the provided OpenAPBills_12-2013_SOFT.xlsx file that contains the AP bills—that is, thelist of document lines to be imported.

You will import the AP bills to be posted to the AP account of the vendor and the specifiedmigration clearing account, 999999. During the import, the system automatically inserts the APaccount of the vendor into the imported bills.

4. Import the AP bills from the OpenAPBills_12-2013_SOFT.xlsx file into the system as follows:

a. On the Import by Scenario form (SM206036; System > Integration > Process), select theImport AP Documents scenario.

b. Click Upload File Version and upload the latest version of theOpenAPBills_12-2013_SOFT.xlsx 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 destinationbranch for each document line. If you do not specify the originating branch, the systemwill insert the branch that is selected for the user session at the moment of import. Noticethat the system would not be able to execute the import scenario, if the user do not haveappropriate access rights to the entities to be imported.


For each bill, the system inserts the default payment method and cash account that arespecified for the vendor. Thus, all vendors are assigned to the CHECK payment methodand the 102000-COMP cash account, and this default information is inserted into theimported bills. By specifying these settings, you can select the imported bills on thePrepare Payments form (Finance > Accounts Payable > Processes > Payment Processing).

e. Correct the following errors in the data to be imported, which were intentionally added tothe file so you could get experiencing correcting data, and retry the import:

• To correct the incorrect vendor ID, change Y000000023 to V000000023 and saveyour changes.

• To exclude the unnecessary last row from import, clear the Active check box for therow and click Save.


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-CheckRecommendations for Data Verification.

Because the Consolidated Posting to GL feature is enabled in the system, the system generatesa single batch with transactions that have the same post period and currency. Otherwise, thesystem 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 12-2013 period and the Software Inc. branch, compare the balance of the 200000 -Accounts Payable account according to the trial balance with the balance of this account by openAccounts Payable documents to make sure that the balances are equal:

a. Review the balance of the 200000 - Accounts Payable account by running the TrialBalance Summary report (GL632000; Finance > General Ledger > Reports > Balance)with the following report parameters:


• Branch: SOFT


The report is shown in the following screenshot. The ending balance of 200000 - AccountsPayable is $245,000.


Figure: The balance of 200000 - Accounts Payable for 12-2013 for SOFT

b. Review the total of open Accounts Payable documents posted to the 200000 - AccountsPayable 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


The report is shown in the following screenshot. The total balance of open Accounts Payabledocuments is $245,000, that is the balances are equal.

Figure: The total balance of open Accounts Payable documents for 12-2013 for SOFT


After you have open AP documents in the system, the vendor balances will be initiated, and youcan 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 onEntry check box again to make the system require the control total for every manually enteredAP document (bill, credit adjustment, and debit adjustment).

| Lesson 30: Import of Customers | 228

Lesson 30: Import of CustomersIn this lesson, you will import customer accounts into the system and then enable auto-numberingto continue from the last imported customer ID. To import customer accounts, you will use thepreconfigured Import Customers scenario provided for this course. The customer accounts will beimported 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 theImport Customers scenario.

b. Click Upload File Version, and upload the latest version of the CustomersMasterFile.xlsxfile.


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 assignedto all customer accounts. If any values are missing in an imported customer account, thesystem 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 tothe 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 "1188-1210 Wellstock Street" in the cell, and save your changes.

• To correct incorrect email address, enter "[email protected]" in the cell,and click Save.

• To correct the wrong country code, enter US in the cell instead of WW, and clickSave.


2. Review the imported records by using the Customers form (AR303000; Finance > AccountsReceivable > Work Area > Manage).

For instructions on how you can verify that the data was imported correctly, see Cross-CheckRecommendations for Data Verification.

You have imported 90 customer accounts. All customers are visible for all branches in thesystem.

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 yetinitiated in the system. The first customer document that you create or import into the systeminitiates the customer balance, and after that, the customer appears in inquiries and reports.

3. Enable the auto-numbering of new customer accounts starting from C000000091 as follows:

a. On the Numbering Sequences form (CS201010; Configuration > Common Settings >Common Settings), create a numbering sequence, as shown in the screenshot below, withthe 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

| Lesson 30: Import of Customers | 229

• Start Number: C000000001

• Last Number: C000000090

Figure: CUSTOMER numbering sequence

b. On the Segmented Keys form (CS202000; Configuration > Common Settings >Segmented Keys), select the CUSTOMER segmented key, and specify the followingsettings for auto-numbering of new IDs:

• Numbering ID: CUSTOMER

• Segment 1, Auto Number: Selected

c. On the Customers form (AR303000), create a customer with the following settings tomake sure it gets the next automatically numbered ID on when you save it:

• Customer ID: C000000091 (inserted automatically when you save the customeraccount)

• Customer Name: Cognitive Solutions Co

• City: San Francisco


| Lesson 31: Import of Open Accounts Receivable Documents | 230

Lesson 31: Import of Open Accounts Receivable DocumentsIn this lesson, you will import the open Accounts Receivable (AR) invoices for 12-2013 for the SoftwareInc company, which is represented by the SOFT branch in the system. Before you import open ARdocuments for a financial period, make sure the total balance of open documents on each account isequal 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 andthe migration clearing account. Then you will reverse the transaction posted to these accounts in thesystem, because the balance of the AR account has been imported earlier as a part of the trial balancefor 12-2013. After the transaction is reversed, you will have the correct balance of the AR account inthe trial balance for 12-2013 and the correct balance of open documents in the Accounts Receivablemodule, 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 12-2013 will be imported from theOpenARInvoices_12-2013_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 onthe Accounts Receivable Preferences form (AR101000; Finance > Accounts Receivable> Configuration > Setup). You want to import AR invoices with their reference numbersand then continue numbering new invoices starting with the reference number of the lastimported 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 theneeded format after you import the documents.

2. Clear the Validate Document Totals on Entry check box on the Accounts Receivable Preferencesform (AR101000) to disable the requirement that the customer enter the document's controltotal; 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), andselect SOFT as the current branch so that the system executes the import scenario withthe 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 theOpenARInvoices_12-2013_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 thatconsist of more than one document line. You can import one line or more lines for eachdocument, depending on the data migration requirements. For example, you can importall of a customer's outstanding invoices into a single invoice in which the document linescorrespond to invoices from the source file. To do that, you can group the document lines bycustomer ID. (Similarly, you can import all bills of a vendor into a single outstanding bill ofthe 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-CheckRecommendations for Data Verification.

Because the Consolidated Posting to GL feature is enabled in the system, the system generates asingle batch with transactions that have the same post period and currency.


5. 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 12-2013 period and the SOFT branch, compare the balance of the 110000 - AccountsReceivable account by open Accounts Receivable documents with the balance of this accountaccording to the trial balance to make sure that the balances are equal:

a. Review the balance of the 110000 - Accounts Receivable account by running the TrialBalance Summary report (GL632000; Finance > General Ledger > Reports > Balance)with the following report parameters:


• Branch: SOFT


The report is shown in the following screenshot. The ending balance of 110000 - AccountsReceivable is $483,350.

Figure: The balance of 110000 - Accounts Receivable for 12-2013 for SOFT

b. Review the total of open Accounts Receivable documents posted to the 110000 - AccountsReceivable 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


The report is shown in the following screenshot. The total balance of open AccountsReceivable documents is $483,350, that is the balances are equal.


Figure: The total balance of open Accounts Receivable documents for 12-2013 for SOFT

After you have open AR documents in the system, the customer balances will be initiated andyou can review the customer balance and documents by using the Customer Summary form(AR401000; Finance > Accounts Receivable > Work Area > Explore) and the Customer Detailsform (AR402000; Finance > Accounts Receivable > Work Area > Explore).

7. Proceed as follows to enable the auto-numbering of new invoices starting from INV000045 (thereference number of the last imported invoice is INV000044):

a. On the Numbering Sequences form (CS201010), select the ARINVOICE numberingsequence.

b. In the table, add a subsequence with the following parameters:

• Branch: Empty

• Start Number: INV000001

• Last Number: INV000044

c. Clear the Manual Numbering check box to enable auto-numbering, and save yourchanges.

d. On the Invoices and Memos form (AR301000; Finance > Accounts Receivable > WorkArea > Enter), select the SOFT branch as the current branch. Then create and release aninvoice with the following settings to make sure it gets the next automatically numberedID (according to the ARINVOICE numbering sequence):

• Type: Invoice

• Reference Nbr.: INV000045 (inserted automatically when you save the document)



• Date: 1/1/2014

• Post period: 01-2014

• Description: 1 hour of consulting

• Document Details, Branch: SOFT, Ext. Price: 100.00, Account: 403000, Subaccount:000-00-00

By default, the ARINVOICE numbering sequence is shared for auto-numbering of invoicesand memos in the system. You can create additional numbering sequences to number debitand credit memos separately from invoices and specify these numbering sequences in theDebit Memo Numbering Sequence and Credit Memo Numbering Sequence boxes on theAccounts Receivable Preferences form (AR101000).

e. After you have imported all the needed documents and you no longer need the migrationclearing account, on the Chart of Accounts form (GL202500; Finance > General Ledger >Configuration > Manage), clear the Active check box for the 999999 - Migration ClearingAccount to deactivate the account in the system and prevent posting transactions to thisaccount, and save your changes.

f. On the Accounts Receivable Preferences form (AR101000), select the Validate DocumentTotals on Entry check box to enable the requirement that the customer enter thedocument's control total.

| Lesson 32: Import of Outstanding Checks and Deposits in Transit | 234

Lesson 32: Import of Outstanding Checks and Deposits inTransit

On 12/31/2013, the accountant of Software Inc. received the bank statement with an ending balanceof $123,800 for the 102000-SOFT checking account. Before importing the account balance for 12-2013into the system, the accountant has reconciled the checking account balance with the bank statement.The reconciled ending balance of the checking account for 12-2013 is $123,000.

After the review of the bank statement as of 12/31/2013, you have realized that there are twooutstanding checks and a deposit in transit on the bank account. They will appear in the next bankstatement that the accountant will receive on 1/31/2014. To provide the accountant with the abilityto reconcile these documents with future bank statements, you have to create the transactions forcurrently unreconciled documents in the 102000-SOFT cash account in the system and import the lastreconciliation 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 102000-SOFT cash account

3. Creating the reconciliation statement

4. Reviewing cash account transactions for December 2013

1. Creating the Transactions for the Outstanding Checks and Deposits

Perform the following instructions to create the transactions for the outstanding checks and the depositin transit:


2. On the Journal Transactions form (GL301000; Finance > General Ledger > Work Area > Enter),create a new batch with the following settings:

• Branch: SOFT



• Description: Unreconciled transactions for 12/31/2013

3. On the Journal Transactions form (GL301000), upload the transactions, listed in the table below,from the UnreconciledTransactions_12-2013_SOFT.xlsx file.


Unreconciled documents for 12/31/2013

Branch Account Subaccount Ref.Number

DebitAmount

CreditAmount

TransactionDescription

SOFT 102000 000-00-00 - 0.00 123,000.00 Reverse entryfor trial balance12-2013

SOFT 102000 000-00-00 - 123,800.00 0.00 Bank statementfor 12/31/2013

SOFT 102000 000-00-00 0001 0.00 2,300.00 Outstandingcheck #000112/30/2013

SOFT 102000 000-00-00 0002 0.00 7,500.00 Outstandingcheck #000212/31/2013

SOFT 102000 000-00-00 1231 9,000.00 0.00 Deposit #1231in transit12/30/2013

4. 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 102000-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, andavailable for bank reconciliation of the cash account.

Figure: Cash account transactions for 102000-SOFT for 2013

To view the list of transactions on the cash account, you can also use the Cash Account Detailsreport (CA633500; Finance > Cash Management > Reports > Balance).


2. Enabling Reconciliation for the Cash Account

Enable the bank reconciliation for the 102000-SOFT cash account in the system as follows:

1. On the Cash Accounts form (CA202000; Finance > Cash Management > Work Area > Manage),select the 102000-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 thatwill 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 102000-SOFT cash account in the system for the12/31/2013 bank statement:

1. On the Reconciliation Statements form (CA302000; Finance > Cash Management > Work Area> Enter), select the 102000-SOFT cash account, and create a reconciliation statement with thefollowing information:


• Load Documents Up To: 12/31/2013

• Statement Balance: 123,800.00

By using this form, you can reconcile the total amount of the transactions in the cash account fora 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 theoutstanding 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 thestatement summary (also shown in the following screenshot). By selecting transactions, youreconcile the total amount of the transactions for the 102000-SOFT cash account in the systemwith the balance of the bank statement for 12/31/2013.

3. Clear the Cleared check box for the last three transactions.

This optional step in the reconciliation process helps you to temporarily mark the transactionsthat haven't yet appeared in the bank statement. Then you can review the reconciled balanceand the uncleared transactions in the cash account by using the Cash Account Transactions form(CA303000).


Figure: Transactions in the cash account reconciled with the bank statement for 12/31/2013

4. Clear the Hold check box and release the reconciliation statement.

As soon as you release the reconciliation statement, the system updates the last reconciliationdate, from which the next reconciliation statement will be calculated. The released reconciliationstatement contains only transactions selected for the statement, and these transactions don'tshow 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 102000-SOFT cash account, and reviewthe transactions from 12/1/2013 to 12/31/2013.

Bank reconciliation doesn't affect the cash account balance in the system. Thus, the 102000-SOFT cashaccount balance calculated for all transactions posted up to 12/31/2013 is $123,000. The cash accountbalance for cleared transactions on this date is $123,800.

Figure: Reconciled transactions in the cash account on 12/31/2013


You mark a transaction as cleared when it appears in a bank statement. Therefore, the balance forcleared transactions on the bank statement date is equal to the bank statement balance on this date.The balance for cleared transactions excludes the transactions for the outstanding checks and thedeposit in transit that haven't shown up in a bank statement yet and haven't been marked as cleared inthe system. These transactions must appear in the next bank statement, for 1/31/2014, when you willbe able to reconcile them with the new statement.



• How can you import trial balances in the system?

• What does the Sign of Trial Balance option specify on the General Ledger Preferences form(GL102000)?

• Do you have to import vendor balances along with open AP documents?

Take the Test

Now take the online Certification Test 8: Data Migration at Acumatica University.

| Appendix: Final Configuration Reference | 240

Appendix: Final Configuration Reference

To complete the system configuration that you use for the lessons of Parts 2–8, the following settingsand configuration entities have been specified in the system in addition to those ones configured duringthe lessons of Part 1:

In this course, you skip the final configuration steps because these settings and entities are covered indetail in the F100 Financials: Basic course.

1. The financial year and the financial periods are configured:

a. The financial year matches the calendar year, and the first year is 2013. Configure theyear on the Financial Year form (GL101000; Finance > General Ledger > Configuration >Setup) with the following settings:

• Financial Year Starts On: 01/01/2013

• Period Type: Month

b. Financial periods are generated for the years 2013 and 2014 on the Financial Periods form(GL201000; Finance > General Ledger > Work Area > Manage).

c. Financial periods from 01-2013 to 09-2014 are activated.

2. On the Cash Accounts form (CA202000; Finance > Cash Management > Work Area > Manage),the 101000-COMP Cash on Hand account of the Computers Inc. company is created with noentry types or payment methods assigned to it and with the following settings:


• Account: 101000 (Cash on Hand)


• Branch: WEST

• Description: Cash on Hand of Computers Inc


3. On the Cash Accounts form (CA202000), the 101000-SOFT Cash on Hand account of theSoftware Inc. company is created with no entry types or payment methods assigned to it andwith the following settings:


• Account: 101000 (Cash on Hand)


• Branch: SOFT

• Description: Cash on Hand of Software Inc.


4. The following cash entry types are defined on the Entry Types form (CA203000; Finance > CashManagement > Configuration > Setup):

a. The BANKCHARGE disbursement entry type with the following settings:

• Entry Type ID: BANKCHARGE

• Disb./Receipt: Disbursement

• Entry Type Description: Bank Service Charges

• Module: CA

• Default Offset Account: 620000 - Bank Service Charges


• Default Offset Subaccount: 000-00-00

b. The INTEREST receipt entry type with the following settings:

• Entry Type ID: INTEREST

• Disb./Receipt: Receipt

• Entry Type Description: Interest Earned

• Module: CA

• Default Offset Account: 405000 - Interest Income

• Default Offset Subaccount: 000-00-00

c. For the 102000-SOFT and 102000-COMP cash accounts, on the Entry Types tab of theCash Accounts form (CA202000), the BANKCHARGE and INTEREST entry types areallowed for each cash account.

5. The payment methods are configured on the Payment Methods form (CA204000; Finance > CashManagement > Configuration > Setup) as follows:

a. The CASH payment method is allowed for use in the Accounts Payable and AccountsReceivable modules with the 102000-SOFT and 102000-COMP cash account. 102000-COMP is the default for CASH for the Accounts Payable and Accounts Receivable modules.On the Settings for Use in AP tab, the Require Unique Payment Ref check box is cleared.

Only one cash account can be the default for a payment method in a module.

b. The CHECK payment method is allowed for use in the Accounts Payable and AccountsReceivable modules with the 102000-SOFT and 102000-COMP cash account. 102000-COMP is the default for CHECK for the Accounts Payable and Accounts Receivablemodules. For each cash account, the AP - Suggest Next Number check box is selectedand the AP Last Reference Number is 000000. On the Settings for Use in AP tab, the PrintChecks option is selected with Lines per Stub set to 10 and Report set to AP641000 -Check Form with Remittance.

c. The WIRE (Description: Wire Transfer) payment method is allowed for use in the AccountsPayable and Accounts Receivable modules with the 102000-SOFT and 102000-COMP cashaccount. 102000-COMP is the default for WIRE for the Accounts Payable and AccountsReceivable modules. On the Settings for Use in AP tab, the Additional Processing > NotRequired option is selected and the Require Unique Payment Ref. check box is cleared.

d. The predefined FEDWIRE payment method is inactive.

6. In Accounts Payable, the 30D credit terms of net 30 days and the 30D7D3 credit terms of 3/7,net 30 days are defined for use in both the Accounts Payable and Accounts Receivable moduleson the Credit Terms form (CS206500; Finance > Accounts Payable > Configuration > Setup).

7. The DEFAULT vendor class is defined on the Vendor Classes (AP201000; Finance > AccountsPayable > Configuration > Setup) form with the following settings:

• Class ID: DEFAULT

• Description: Default

• Country: US (Unites States)

• Terms: 30D (Net 30 days)



• AP Account: 200000 (Accounts Payable)

• AP Subaccount: 000-00-00

• Cash Discount Account: 490000 (Cash Discount Received)


• Cash Discount Sub.: 000-00-00

• Prepayment Account: 140000 (Prepaid Expenses)

• Prepayment Subaccount: 000-00-00

8. The Accounts Payable preferences are specified on the Accounts Payable Preferences form(AP101000; Finance > Accounts Payable > Configuration > Setup):


• Default Vendor Class ID: DEFAULT

• Require Approval of Bills Prior to Payment: Cleared

• Require Vendor Reference: Cleared

9. In Accounts Receivable, the End of Month (EOM) statement cycle is configured on the StatementCycles form (AR202800; Finance > Accounts Receivable > Configuration > Setup).

10. The DEFAULT customer class is defined on the Customer Classes (AR201000; Finance >Accounts Receivable > Configuration > Setup) form with the following settings:

• Class ID: DEFAULT

• Description: Default


• Credit Verification: Disabled

• Terms: 30D (Net 30 days)

• Statement Cycle ID: EOM (End of Month)


• AR Account: 110000 (Accounts Receivable)

• AR Sub.: 000-00-00

• Sales Account: 403000 (Sales - Consulting Services)

• Sales Sub.: 000-00-00

• Cash Discount Account: 595000 (Cash Discount Given)

• Cash Discount Sub.: 000-00-00

• Prepayment Account: 244000 (Customer Deposits)

• Prepayment Sub.: 000-00-00

11. The following settings are specified on the Accounts Receivable Preferences form (AR101000;Finance > Accounts Receivable > Configuration > Setup):


• Hold Documents on Failed Credit Check: Cleared

• Default Customer Class ID: DEFAULT

| Appendix: Demo Data Reference | 243

Appendix: Demo Data Reference

The database that you use for the lessons of Parts 2–7 includes the objects listed below and the resultof the data import described in the lessons of part 8:

1. On the Tax Categories (TX205500; Finance > Taxes > Work Area > Manage) form, the taxcategory EXEMPT is defined.

2. On the Non-Stock Items (IN202000; Finance > Accounts Payable > Work Area > Manage) form,the following non-stock items are created:

• Advertising

• Inventory ID: ADVERT

• Description: Advertising

• Type: Service

• Tax Category: EXEMPT

• Base Unit: HOUR

• Expense Account: 610000 (Advertising Expense)

• Expense Sub.: 000-00-00

• Support

• Inventory ID: SUPPORT

• Description: Support service

• Type: Service


• Base Unit: HOUR

• Expense Account: 790000 (Services Expense)



• Consulting

• Inventory ID: CONSULT

• Description: Consulting service

• Type: Service


• Base Unit: HOUR




• Customization

• Inventory ID: CSTMZATION

• Description: Customization service

• Type: Service


| Appendix: Demo Data Reference | 244

• Base Unit: HOUR




| Appendix: Closing Procedure Checklist | 245

Appendix: Closing Procedure Checklist

You can use this checklist to make sure that you have performed all necessary procedures before youclose a financial period in the modules of Acumatica ERP.

Accounts Receivable

1. Generate the recurring transactions, if any.

2. Print out and review the AR Edit report (AR611000; Finance > Accounts Receivable > Reports >Audit). Release the documents that should be processed in the financial period you are going toclose.

3. Apply the open payments, prepayments, and credit memos to the appropriate outstanding ARdocuments.

4. Write off small balances and credits, if necessary.

5. Generate overdue charges, if necessary.

6. Reconcile the customer balances with the balance of GL accounts by using the AR Balance by GLAccount report (AR632000; Finance > Accounts Receivable > Reports > Balance).

7. Prepare the customer statements.

8. Prepare the dunning letters, if required.

9. Revalue the customer accounts that are maintained in a foreign currency, if any.

10. Print out and file the AR Aged Past Due report (AR631000; Finance > Accounts Receivable >Reports > Balance) and other AR reports that are required by your company's policy.

11. Close the financial period in the Accounts Receivable module.

Accounts Payable


2. Print out and review the AP Edit (AP610700; Finance > Accounts Payable > Reports > Audit)report. Release the documents that should be processed in the financial period you are going toclose.

3. Apply the open prepayments and debit adjustments to the appropriate outstanding APdocuments.

4. Reconcile the vendor balances with the balances of GL accounts by using the AP Balance by GLAccount report (AP632000; Finance > Accounts Payable > Reports > Balance).

5. Revalue the vendor accounts that are maintained in a foreign currency, if any.

6. Print out and file the AP Aged Past Due report (AP631000; Finance > Accounts Payable >Reports > Balance) and other AP reports that are required by your company's policy.

7. At the end of the calendar year, print out the 1099-MISC Form report (AP653000; Finance >Accounts Payable > Reports > Forms) and close the year for 1099 payments.

8. Close the financial period in the Accounts Payable module.


Cash Management

1. Print out and review the CA Edit report (CA612000; Finance > Cash Management > Reports >Audit). Release the transactions that should be processed in the financial period you are going toclose.

2. Import the bank statements for cash accounts, if necessary.

3. Reconcile the cash accounts with the bank statements, if required.

4. Reconcile the cash account balances with the balances of GL accounts by using the Cash AccountTransactions form (CA303000; Finance > Cash Management > Work Area > Explore).

5. Close the financial period in the Cash Management module.

Deferred Revenue

• Perform the deferred revenue and expense recognition, if necessary.

Fixed Assets

1. Print out and review the Open FA Documents report (FA651000; Finance > Fixed Assets >Reports > Audit). Release the transactions that should be processed in the financial period youare going to close.

2. Depreciate the fixed assets for the period.

3. Reconcile the fixed assets with the balances of GL accounts by using the FA Balance report(FA630000; Finance > Fixed Assets > Reports > Balances).

4. Close the financial period in the Fixed Assets module.

Taxes

At the end of a tax period:

1. Prepare the tax report.

2. Print out and review the Tax Details report (TX620500; Finance > Taxes > Reports > Balances)and the Tax Summary report (TX621000; Finance > Taxes > Reports > Balances). Make the taxadjustments, if necessary.

3. Reconcile the balances according to the Tax Details by GL Account by Date report (TX622500;Finance > Taxes > Reports > Balances) with the balances of GL accounts.

4. Close the tax period.

Inventory

1. Print out and review the Inventory Edit Summary report (IN610500; Distribution > Inventory >Reports > Audit). Release the transactions that should be processed in the financial period youare going to close.

2. Reconcile the inventory with the balances of GL accounts by using the Inventory Valuation report(IN615500; Distribution > Inventory > Reports > Balances).

3. Close the financial period in the Inventory module.

General Ledger


2. Calculate and post the accruals for the unrecorded expenses and revenue, if necessary.


3. Print out and review the GL Edit Summary report (GL611500; Finance > General Ledger >Reports > Audit). Release the transactions that should be processed in the financial period youare going to close.

4. Review the Post Transactions form (GL502000; Finance > General Ledger > Processes > Daily),and post all batches that should be posted to the financial period that you are going to close, ifany.

5. Revalue the GL accounts denominated to foreign currencies.

6. Process the allocations, if necessary.

7. Translate the account balances into the reporting currency, if necessary.

8. Consolidate the subsidiary data into the parent company, if necessary.

9. Print out and file the Balance Sheet report (GL634000), Profit & Loss report (GL635000), andother GL reports that are required by your company's policy.

10. Close the financial period in the General Ledger module.

11. Make the financial period inactive, if necessary.