Shop
System
TM
Virtual Training
Workbook
Accounting
Professional Edition
www.shoptech.com
Objectives
This session will cover the following:
Company Maintenance Settings
Overview of tables directly affecting accounting
Accounts Receivable / Accounts Payable
General Ledger Functionality
Month End/Year End Process
Implementing E2 Accounting
Company Maintenance Settings
System | Company Maintenance | Defaults
General Ledger Tab
Fiscal Year Begin Date
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System will open up periods for 2 years’ worth of accounting from this date forward
Automatically updates after posting a fiscal year
Red letter fields required to enter accounting records in the system
Define divisions in order to print Income Statement by divisional breakdown
Customer Tab
Designate how accounting information will be passed on the A/R invoices
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Work Codes are attached to customers. Relates to type of service customer provides
Product Codes are attached to inventory items. Relates to parts made and sold
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Both work codes and product codes require same information. Carry sales GL account
Accounting Related Tables
GL Group Codes (Base Table)
Each GL code is assigned to a group of accounts
Each group code will subtotal on financial reports
Classification determines what financial report associated GL code appears on
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Balance Sheet – Assets, Liabilities, Owners Equity
Income Statement – Sales, Expense, Other Income
GL Accounts (Core Table)
Company’s chart of accounts
Each GL account must be assigned to a group code
Accumulation account allows for printing of consolidated balance sheet and income statement
Enter beginning balances under This Year tab
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Credit values are represented by a minus sign
Monthly totals are system generated as each month is posted to the general ledger
Monthly values represent net activity for the month
Enter prior year’s balances under Last Year tab
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Used for comparative financial reports
Will auto populate once the fiscal year is posted
Budget tab used for budget analysis reports
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Values can be entered manually or by using the budget creation calculator
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Exercise #1: Create GL Account
Tables | GL Codes | New
General Tab
GL Code = 6235
Description = Rent – Storage
GL Group Code = 70 Selling & Administrative
Budget Tab
Budget Creation Utility
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Option = Total Per Month
Monthly Amount = 500
Click OK
Click OK to save & close
Bank Codes (Core Table)
Create bank codes for each account that will need to be reconciled at the end of the month
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System creates check register which makes it possible to view balances in Executive Overview of QuickView
GL Code needs to be unique for each bank code for reconciliation purposes
Check numbers cannot overlap between bank codes
Work Codes / Product Codes (Base Tables)
Work Codes are attached to customers
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Refers to type of work customers provide
Can be used as filter for customers, orders, invoices and related reports
Product Codes are attached to inventory items
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Refers to type of material, production process
Can be used as filters for parts, orders and related reports
Shared Features
Require 4 GL Codes when created
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AR Account
Discount Account
Sales Account
Freight Account
Drives how sales are posted to GL when AR invoices are created
Tax Codes (Base Table)
Create tax code for each taxing authority dealt with
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Will need on for Exempt since tax codes are required on all customer invoices
Create separate tax codes for AR and AP
Create new tax code if tax rate changes
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Terms Codes (Base Table)
Used for both vendors and customers
2 methods of calculation:
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Number of Days
Specific Days
Currency Codes (Base Table)
Only need to set others if dealing with foreign currencies
When creating AR invoices system uses rate on the date orders are entered not when invoice is created
Accounts Receivable
AR invoices can be created from multiple sources:
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Directly from Packing Lists, most common source
Freeform, manual entry of all information
Credit Memos, created from customer returns or manually by placing negative amount for unit price
Invoice from Packing List
Detail Tab
Invoice date defaults to packing list date, can edit if necessary
Ship charges can be entered manually if not present on packing list
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Not taxable if entered in this field
Line Item Billing Detail Window
Accessed from details button on lower right
GL Code must be selected for each line item on invoice
Header Tab
Pulls from customer code, can edit
Can update location to be printed on invoice
Notes Tab
Comments pull from customer code and print on invoice
Can edit as needed
Print Invoice
Additional invoice text can be used to print standard text on invoices. User specific
Freeform Invoice
Select customer code and enter parts directly on grid
Access billing details to assign correct GL code and product code
Recurring Invoices
Use copy utility to create multiple copies at once
Can edit future copies as necessary
Auto Billing Utility
Ability to creates multiple invoices at once
Recommended to clear print spool prior to processing
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Exercise #2: Create AR Invoice from Packing List
AR | Billing | New
Click Search
Select Packing List Number = 5558
Click OK
Select Job Number = 7174-01
Click OK
Ship Charges = $10.00
Add 2nd Line Item
Part Number = Special Packaging Charge (manually entered)
Qty. Ordered = 1
Unit Price = $15.00
Edit Billing Details for 2nd Line Item
Select Part Number field and right click
GL Account = 4030 Freight Income
Taxable = Yes
Click OK to save & exit billing details
Header Tab
Sales Tax Code = KY
Terms Code = 1% NET 30
Click OK to save & close
Print Invoice
Click Print button on billing search screen
Additional Invoice Text = Thank you for your business!
Company Name At Top = Yes
Print Cash Discount Message = Yes
Company Location = CINCINNATI
Report Destination = Screen
Select Invoice Number = 5558
Click Single Invoice
Review Invoice
Click Close
Exercise #3: Create Credit Memo
AR | Billing | New
Customer Code = BASS
Invoice Number = 5553-CM (override existing)
Part Number = CREDIT (entered manually)
Qty. Ordered = 1
Unit Price = -$50.00 (entered as negative value)
Description = Credit for scratched parts
Click OK to save & close
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Finance Charge Utility
Similar to Auto Billing utility in functionality
Invoices will display as long as they meet criteria
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Invoice has terms code with a late fee percentage
Invoice is beyond its stated due date
Work Code is used to determine where finance charge income should be assigned with regard to GL code
Cash Receipts
Can be created directly from invoice or manually
Any credit memo invoices need to be pulled onto a cash receipt to remove them from the aging report
If payment amount is less than invoice total, invoice will be still be considered unpaid
Bank code provides GL code
Miscellaneous Cash Receipts
Refers to receipt of funds without associated invoice
Customer code still required
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Create a Miscellaneous Customer Code
Invoice number and invoice total fields are system maintained, enter amount received under gross amount field
Manually select GL code to credit
Exercise #4: Create Cash Receipt from Invoice
AR| Cash Receipt | New
Check Number = 5241
Customer Code = BASS
Click Search
Select Invoice Numbers = 5553 & 5553-CM
Click OK
Click OK to save & close
Exercise #5: Create Miscellaneous Cash Receipt
AR | Cash Receipt | New
Check Number = Today’s date
Customer Code = MISC
Gross Amount = $100.00
GL Code = 4025 Sales – Other
Comments = Robert Jones – Scrap Sales
Click OK
Click OK to save & close
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Accounts Receivable Reports
AR Aging Summary displays all open invoices
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Should balance against General Ledger AR account at the end of the month
Sales Summary lists all customer invoices entered in system in the specified time frame
Deposit Summary lists all deposits made based on criteria selected
Statements will allow to generate customer statements
Commission Summary lists all commission due on amounts paid and unpaid
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If commissions are calculated based on amounts paid, use the deposit summary report by salesman breakdown
Unbilled Shipment Summary displays packing lists that have not yet been billed
AR Sales Tax Summary lists invoices where sales tax was applied
Accounts Payable
AP invoices can be created from multiple sources:
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Directly from Receivers, most common source
Freeform, manual entry of all information
Debit Memo, created from vendor return or manually by entering a negative amount
Invoice from Receiver
Detail Tab
Invoice date defaults to receiver date, can edit if necessary
Discount date and net due date calculate from invoice date
Ship charges can be entered manually if not present on receiver
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Not taxable if entered in ship charges field
If there is a discrepancy between the invoice total and the purchase order total, can edit unit price on purchase order through
Update PO button
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Will need to manually update the invoice amount or reselect receiver
Hold payment will prevent invoice from being pulled on to a check
Header Tab
Pulls from vendor code, can edit
Miscellaneous Job Costs Tab
Used to add costs from invoice to specific job(s)
Freeform Invoice (Miscellaneous Purchase)
Invoice date defaults to today’s date
GL code defaults to GL code associated with vendor selected
Recurring Invoices
Use the copy utility to create multiple invoices at once
Edit future copies as necessary
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Exercise #6: Create AP Invoice from Receiver
AP | Vendor Invoices | New
Invoice Number = 6218
Vendor = JORGENSEN
Click Search
Select Receivers Number = 3580 & 3585
Click OK
Update Unit Cost on Purchase Order
Click Update PO button
Part Number = 1018-0.125X0.3125-FT
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Unit Cost = $0.31 (override existing)
Part Number = 12L14-1.00
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Unit Cost = $5.57 (override existing)
Click OK to save & close
On Invoice
Update invoice amount manually
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Another option is to cancel out of invoice without saving. Create a new invoice and reselect the receivers
Exercise #7: Create AP Invoice for Miscellaneous Purchase
AP | Vendor Invoices | New
Invoice Number = 1247
Vendor = FEDEX
Invoice Date = Last Friday
Amount = $150.00
On Misc. Job Costs Tab
Job Number = 7177-01
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Part Number = Freight (overwrite existing)
Quantity = 1
Cost = $20.00
Job Number = 7180-01
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Part Number = Freight (overwrite existing)
Quantity = 1
Cost = $50.00
Click OK to save & close
Check Writing
Checks can be created in multiple ways
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Directly from Invoices
Manually
Auto Check Utility
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Check from Invoice
All information pulls from invoice
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Can pull multiple invoices on a single check
A single check can contain up to 15 invoices
Check Number pulls from bank code table, can edit
If customer is paying less than the invoice balance edit the gross amount
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Invoice will remain unpaid until full balance is paid
Manual Check
Since no invoice will be selected, line 1 of the header tab must be filled in first
GL code is selected manually
1099s will not be generated for manual checks
Auto Check Writing Utility
Ability to create multiple checks at once
Recommended to clear the print spool prior to processing
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Can close utility and save selections without processing
Voiding Checks
Select check(s) to void from the search grid and click the void button
Once voided, all invoices on check will be marked unpaid
Cannot void check from a posted period or a closed year
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In this case, use a journal entry to offset the effect on cash
Exercise #8: Create Check from an Invoice
AP | Check Writing | New
Vendor = FEDEX
Click Search
Select Invoice Number = 1247
Click OK
Click OK to save & close
Exercise #9: Create a Manual Check
AP | Check Writing | New
On Header Tab
Line 1 = Gold Star Electric
On Detail Tab
Invoice Number = 2548
Gross Amount = $840.28
GL Account = 5150 Maintenance & Repair
Click OK to save & close
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Bank Reconciliation
Does not impact general ledger, uses information from the check register
Enter statement ending balance from bank statement
Ending date must be last day of month being reconciled regardless of closing date on bank statement
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E2 looks at the full month, nothing outside of the month to balance
Journal entries can only be cleared once. Once cleared, it will not display on any other bank code
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Will need to create 2 separate journal entries for transactions requiring 2 bank codes
Can exit utility without processing and save selections
Once all cleared items are marked, Out of Balance amount should be zero
Strongly recommend to print reports Before and After processing
Accounts Receivable Reports
AP Aging Summary displays all open invoices
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Should balance against General Ledger AP account at the end of the month
Vendor Invoice Summary will show what is hitting each general ledger code in current period without posting
Check Summary lists all checks written within the criteria selected
Checkbook Register will display both checks and deposits
Unbilled Receiver Summary displays receivers that have not yet been billed
AP Sales Tax Summary lists invoices where sales tax was paid
General Ledger
Journal Entries
Bank code is not required, system looks to GL code to know what bank code to associate the transaction with
Double sided entry
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Credits and Debits must balance to be saved
When creating reversing journal entries
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Date to reverse must be entered prior to saving the journal entry for the first time
Miscellaneous Job Costs tab can be used to add costs from the journal entry to specific job(s)
Copy function can be used to create recurring journal entries
Exercise #10: Create a Recurring Journal Entry
GL | Journals | New
Transaction Date = First day of the current year
GL Code = 1805
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Credit = $1,200.00
GL Code = 1815
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Credit = $800.00
GL Code = 1825
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Credit = $500.00
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GL Code = 5155
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Debit = $1,200.00
GL Code = 6165
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Debit = $1,300.00
Explanation = Monthly Dep
Comments Tab = Month End Depreciation Entry
Click OK to save & close
Create Recurring Journal Entries
Select Journal entry just created from search grid
Click Copy
Number of Copies = 11
Recurrence Unit = Monthly
Interval = 1
Click OK
Click Search all to see recurring journal entries
Month End Entries
The way in which material is purchased is very important in deciding what entries will be made at the end of each month
Entries are made to adjust Inventory, Cost of Goods Sold (COGS), and Work in Process
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These are reversing entries
3 reports to run:
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Unbilled Receivers
WIP Summary
Inventory Summary – NOT back dateable! Must run on last day of month
Other Entries
Journal entries for payroll if not using an interface
Journal entries for depreciation and amortization
**This is not intended to be an exhaustive list but rather provide an overview of the kind of entries needed each month. For
assistance with specific entries, consult with your accountant and coordinate with an E2 consultant as appropriate
Posting Periods
Located under GL | Journals | Process
2 years available from fiscal year begin date entered under company maintenance
Adjustment periods allow for year-end entries that do not belong in any specific month
Ability to post and un post periods
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Can select multiple periods at once to post and un post
Cannot un post a locked period, will need SQL statement to unlock
Once month is posted, run financial reports and verify balances
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Year End Process
Before posting a fiscal year, run 4 core financial reports:
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Balance Sheet
Income Statement
Trial Balance
General Ledger Summary
Follow these steps to process fiscal year:
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Create back up database
Create history company
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For times in the future when historical financial reports are needed
In Main database, un post any periods outside fiscal year
Click Post Year
Once processed:
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Income & Expense accounts are zeroed out
Current Earning roll into Retained Earnings
Fiscal Year Begin Date in company maintenance rolls forward 12 months
Core financial reports can no longer be printed for year posted
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If you have already implemented E2 Accounting, the rest of this session may not apply to you.
Feel free to leave the session or you may wish to remain online and observe or practice
Implementing E2 Accounting
Important Dates
Fiscal Year Begin Date
Go Live Date
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Can be any month within fiscal year but must be the first of the month
Date of oldest outstanding record
Reports Needed from Prior System
Accounts Receivable Aging
Accounts Payable Aging
Outstanding Checks
Trial Balance for General Ledger Balances
Company Maintenance Considerations
Verify fiscal year begin date is set far enough in time
Consider temporarily disabling next number options
Entering Open Items
Open Invoices (AR and AP)
Need each open invoice entered individually for accurate aging information
Once entered, run aging summaries in E2 and balance against aging summaries from prior system
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If Shop Floor portion of E2 is already in use
Packing lists and receivers can be used to create open invoices
Packing lists and receivers need to be updated manually regarding previously paid invoices
Outstanding Checks
Enter as manual checks with original check date and number
Verify amounts against bank statement
Beginning Balances
Use month end reports for the last month from prior system
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Reminder: credit balances are entered with a minus sign
If operating on a short year enter values for Income, Expenses and Current Earnings
DO NOT POSTPONE USE OF SYSTEM
Reset Fiscal Year Begin Date
Once all open items have been entered, reset the fiscal year begin date to the Go Live Date
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Prevents skipped periods from being posted by accident
Keeps check register in sync with financials
Year End Considerations (if operating on a short year)
Create a backup database
Un post periods outside fiscal year to post
Reset fiscal year begin date in company maintenance to company’s actual fiscal year begin date
Create history company
Process fiscal year
Contact Information
Sales: 800-525-2143
Support: 800-677-9640
[email protected]
[email protected]
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