Slideshow 4 Setting Up Bank Services, Tax Services and Schedule Codes 5.2

List of Topics Slide No. Activating Bank and Tax Services3 Setting Up Bank Services 4 Setting Up Tax Services 10 Defining Schedule Codes 14

Activating Bank and Tax Services The information you enter into Bank Services and Tax Services is required before you can activate both the Accounts Payable and Accounts Receivable ledgers. Click and study basic information about Bank and Tax Services. Click to continue. Bank Services Use both deposit information from A/R and cheque information received from A/P. Before Bank Services can be activated, G/L Subledger Services must be activated first. Tax Services Use both tax collected information from A/R and tax paid information from A/P.

Setting Up Bank Services Click Step 1 below. Step 1: Define Bank Options. Bank Options define the integration of Bank Services with G/L. Study the Bank Options window. The During Posting option for Create G/L Batches will create bank subledgers automatically in the G/L every time you post a cash receipt in A/R or a vendor payment in A/P. Select On Request Using Create G/L Batch Icon if you do not want to bank subledger batches created automatically on posting. Keep Append G/L Transactions unchecked to instruct ACCPAC to create separate bank subledger batches for each bank reconciliation transaction. Click to continue.

Setting Up Bank Services (continued) Selecting Do not Consolidate for the Consolidate G/L Batches field will provide you with details of bank transactions instead of a consolidated entry. Selecting Withdrawal Number for G/L Reference Field will instruct ACCPAC to use original cheque numbers as reference. Select Payee Name for G/L Description Field to use it as cheque description in A/P. Click the DEPOSITS tab on the bottom half of the window. Select Reference for G/L Reference Field and Description for G/L Description Field. Step 2: Define Bank Transaction Types Bank Transaction Types define the G/L accounts where bank transactions should be recorded. Click and study CCSL’s Bank Transaction Types.

Setting Up Bank Services (continued)Click. You would enter each Transaction Type in a Bank Transaction Types window. Step 3: Add Bank Accounts At least one bank account is required. A company may have more than one account. For example, there may be a separate account for payroll. Click and study the BANKS window. Transaction TypeDescriptionG/L Account SCBank Service Charges LOANLoan Payment2000 INTInterest Charge PAYPayroll Clearing2390 INSUREInsurance Direct Payment OBBank Opening Balance1000

Setting Up Bank Services (continued) At least one bank account is required. A company may have more than one account; e.g., a separate account for payroll aside from the regular company bank account. Study the PROFILE page of the BANKS window. You would enter your bank information on the ADDRESS page. Click the CHECK STOCKS tab. Under Stock Type, you can view the cheque forms available in ACCPAC. You would create your own name for Check Stock Code for the corresponding Stock Type. Click the BALANCE tab. All of the fields on this page are maintained by ACCPAC and cannot be edited. This page will be updated every time a transaction is recorded to the bank account. Click to continue.

Setting Up Bank Services (continued) Step 4: Record Opening Bank Balance The bank balance as per the bank statement must be entered and posted to the Reconcile Statements window in the Bank Services subledger. Study the SUMMARY page of the Reconcile Statements window. Click the ENTRIES tab. Notice that the opening balance is entered in the G/L CASH account. Click the WITHDRAWALS tab. Assuming that the following cheques have been issued but not shown in the bank statement: /30 John Stammers /30 Jim Muir Study how these outstanding cheques are entered in the Withdrawals Page. Click the SUMMARY tab. Balance as per bank statement. No book balance entered. Bank Balance entered in the CASH account. Cheques issued but not cleared according to the bank statement (outstanding cheques).

Setting Up Bank Services (continued) The two entries on the Withdrawals Page updated Withdrawals Outstanding in the Bank Statement and the Book Balance.Click. Notice that the Out of Balance amount is now zero. You will then post the batch and create a G/L batch.Click. To verify after posting, print the Bank Reconciliation Posting Journal. Click to continue.

Setting Up Tax Services Tax Services is essential if you are required to report tax information (e.g., GST, HST or PST). By specifying how your ACCPAC A/P and A/R systems should keep track of tax data, Tax Services will calculate the taxes applicable on vendor and customer invoices and post them to the correct G/L accounts. Click Step 1 below. Step 1: Set up Tax Authorities Tax Authorities are the federal and provincial agencies to whom you remit tax payments. CCSL deals with two government agencies for sales taxes: Canada Revenue Agency (CRA) for GST and HST The Provincial Treasurer for PST. Study the PROFILE page for one of the Tax Authorities. Click The ACCOUNTS tab. Indicates that you want to track detailed tax information. Allows ACCPAC to calculate GST on tax included invoices.

Account where GST charged on sales will be recorded. Check mark indicates that GST paid on purchases by the company is recoverable. Account where GST paid on company purchases will be recorded. 100% of GST paid on company purchases will be recoverable. Setting Up Tax Services (continued) Study the ACCOUNTS page. Click Step 2 below. Step 2: Set up Tax Classes Tax Classes are used to categorize customers and vendors who pay and charge taxes. Items, vendors and customers are classified as either: taxable, or exempt At least one Customer Class or Vendor Class and one Item Class for each Tax Authority must be added in order to record sales tax rates. The first Tax Class in each category is always the company’s standard tax class. CCSL’s standard tax class is Taxable. Click and study examples of Tax Classes for sales and purchases. Click to continue. Account where GST charged on sales will be recorded. Check mark indicates that GST paid on purchases by the company is recoverable. Account where GST paid on company purchases will be recorded. 100% of GST paid on company purchases will be recoverable.

Setting Up Tax Services (continued) Step 3: Define Tax Rates Tax Rates are set by each Tax Authority on taxable transactions. In order for a transaction to be taxable, both the item and the customer/vendor must be taxable. If the item, customer/vendor is exempt, the tax rate is zero. Click and study the Tax Rates for fED (Federal GST) for Sales. Click to continue.

Setting Up Tax Services (continued) Step 4: Set Up Tax Groups Tax Groups are used to group one or more Tax Authorities in order to simplify tax calculations on vendor/customer invoices. Click and study the Tax Group for GST only. If both GST and PST are paid on a vendor invoice, the two taxes can be grouped together in one Tax Group. Click and study the Tax Group for GST and PST combined. You need a separate Tax Group for every set of tax requirements on sales and purchases. Click to continue.

Defining Schedule Codes Schedule Codes are set up in order to use the following features: Recurring entries in the G/L; e.g., month-end adjustment for amortization. Recurring payments in A/P; e.g., lease payments. Recurring charges in A/R; monthly maintainance contract billings to customers. Using recurring transaction features saves data entry time and reduces the possibility of errors. Schedule Codes are set up in Common Services. Click and study sample Schedule Codes for the first of every month and at the end of every month. Click to continue.

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