May-04Accounting1 Compiere Training Accounting, Tax Performance Analysis

May-04Accounting2 Agenda Performance Analysis Information Dimensions Calendar & Periods Accounting Schema Charge Tax Accounting Details Show Accounting Tools > Preference Role Security

May-04Accounting3 Performance Analysis

May-04Accounting4 Terminology

May-04Accounting5 Information Dimensions Organization Owning (balance sheet) Transacting (executing org or service center) Natural Account Product Business Partner Project Marketing Campaign Location (Warehouse, Business Partner) From - To Activity (Activity Based Costing) User Defined (2) Accounting Schema Elements (Segments)

May-04Accounting6 Principles Accounting entry at the lowest level (Accounting Fact) Any Accumulation Trees for Summary & Navigation Element Values derived from Transaction Directly (entered) Derived Differentiate Document from Accounting Consequence Multiple Accounting Schema

May-04Accounting7 Dimensions Tree Conversion

May-04Accounting8 Tree Characteristics You can post only to Leaf Level You can report on Summary and Leaf Level You can change Structure any time “HQ Operations” Extra Leaf / Summary required E.g. Differentiate “Direct Sales” level transactions from individual Stores Different Modeling Options Dependent what you want to report on

May-04Accounting9 Dimension Tree Alternative

May-04Accounting10 Calendar & Period Two Dates Document Date Accounting Date Calendar & Period only for control & reporting purposes No End Period processes Period can be automatically opened You cannot post in closed periods – Change accounting date (or re-open) Controlling Calendar defined on Client Level

May-04Accounting11 Account Element Type Natural Account User defined One (or more) Trees for Reporting Values Account Type & Sign Posting Type (Actual – Budget – Stat)

May-04Accounting12 Accounting Schema From “traditional CCC” to Chart-Of-Account (Natural Account) Currency (Not Calendar) Costing Method GAAP* Selection of Elements

May-04Accounting13 Multiple Accounting Schema Parallel Accounting of Documents No need to derive one from the other Differentiate between Legal/Tax Accounting Multiple Countries Management Accounting Currency Translation not correct Document Accounting Consequence

May-04Accounting14 Account Schema Elements Information Dimensions Balanced Postings to this Element must be balanced E.g. Organization Mandatory With every transaction you have to define E.g. Organization, Natural Account Default Value

May-04Accounting15 Accounting Schema Changes Change Structure any time Add/Change/Delete Elements Change Values any time Overwrites old ones! Change Hierarchy any time Reporting Hierarchy of Elements Org, Account, BPartner, Product, Project, etc. Merge Element Entries any time Organization, BPartner (User), Product

May-04Accounting16 Accounting Defaults Default Hierarchy Accounting Schema BP Group, Product Category,.. Business Partner, Product,.. Account Combination Combination of Element Values Org – Natural Account –... Posting adds Document Context Values to Account Defaults E.g. Invoice automatically adds Business Partner

May-04Accounting17 Account Combination OrgProductBPartnerProjectAccount Default Account OrgProductBPartnerProjectAccount Posted Account (dynamically created) 02__Building FlowersJoeBuilding1600 Document

May-04Accounting18 Posting Posted in Background or Explicit When document is processed Reset Accounting For specific/all Document Table Allows to correct wrong default accounts Resubmit Posting After correcting cause for Posting error E.g. Open Period

May-04Accounting19 Account Info (View) View Accounting For Document For Enabled Account Element Value Optional Account Date Range Optional Sorting Grouping

May-04Accounting20 GL Category Traditional GL Reporting Sources Derived from Document Type Manually Entered

May-04Accounting21 Document Sequence Unique numbering of documents Gap-less Optional Prefix/Suffix Assigned via Document Type

May-04Accounting22 Charge The Link (“Alias”) between (Multiple) Chart-of-Accounts Natural Account (Account Combination) Attributes Option to distinguish Dr/Cr Posting Tax Category & Tax Inclusive Handling* Creation Manually Generate Charges from Natural Account

May-04Accounting23 Tax Overview

May-04Accounting24 Tax Tax Category Link to Product (Commodity Code) API* for Tax Vendors Commodity – Invoice/Ship – From/To Maintain Tax Rate Invoice From/To For simple tax situations

May-04Accounting25 Multiple Tax Rates More than one tax rate on the same net amount Line Tax1 (5%) 5.00 Tax2 (4%) 4.00 If “Tax on Tax” calculate rate as if from net Enter % for Summary Level Summary (9%)9.00 Summary Level used while entering data Correct Taxes calculated when Processed

May-04Accounting26 Tax Issues Tax Calculation On Header Total Amount per Tax * Rate Tax Inclusive The Amount includes all taxes Define in Price List Charge*

May-04Accounting27 Budgeting Define Budget & Status Enter Budget Journal Entry Post to Budget Report

May-04Accounting28 Planned Functionality Automatic GL Distribution* You define Source – e.g Multiple Targets – e.g. 50% Recursive Use Currency Revaluation* Allocations* Alerts* Cockpit*

May-04Accounting29 Accounting Details Optional Material

May-04Accounting30 Details: No Sub-Ledger Traditional Systems Sub-Ledger Documents create GL Journals GL Journals are posted Compiere All Documents are directly posted GL Category defined in Document Type Simulating a Sub-Ledger Create “Sub Ledger” Reports based on GL Category Creating Sub-Ledgers (Customization) Create Accounting Trx Exports for other Client With the desired level of Summarization

May-04Accounting31 Detail: Balancing Defined per Accounting Schema Source Amount Balancing If Suspense Balancing enabled Post to Suspense Acct – Otherwise fail Segment / Element Balancing Implemented for Organization (Due To/From) Accounting Amount Balancing With Currency Balancing Difference posted to Currency Balancing Account Without Currency Balancing Difference added to biggest Balance Sheet Account Amount

May-04Accounting32 Details: Reverse (Correction) Differentiate between Reversals (Accruals) Correction “Undo” Motivation: Correct Account Debit / Credit Sum E.g. Differentiate between Invoice Correction and Voiding Invoice Example - Original Trx Account 1Dr 50 Account 2Cr 50 Reverse Account 1Cr 50 Account 2Dr 50 Reverse Correction Account 1Dr -50 Account 2Cr -50 Reverse Trx 50 Reverse 5050 Reverse Correction Trx 50 Reverse-50 0

May-04Accounting33 Details: Invoice Allocation Payment In Transfer (Bank)Dr Unallocated ReceiptsCr Per Allocation Transaction Unallocated ReceiptsDr Accounts ReceivablesCr Write-OffCr Payment DiscountCr View Allocations in “Reverse Allocation”

May-04Accounting34 Details: Realized Gain & Loss Created when posting Invoice Allocation Difference between converted (Partial) AR/AP Amount Allocation Amount E.g.Accounts ReceivablesDr 22 Realized GainCr 22 Conversion Rate on Allocation Trx Date Is Payment Date when 1:1 with Payment Manual Allocation Date defaults to Login Date

May-04Accounting35 Details: Tax Correction Enabled in Accounting Schema If you have to pay tax only on the actually received (not invoiced) Amount – VAT Example Lines $100 + Tax1 $15 + Tax2 $5 = Total $120 Payment of $115 ($5 Payment Discount or Write-Off) Tax1 Correction = $0.63 (15/120*5) Tax2 Correction = $0.21 (5/120*5) Journal Entries (e.g. Sales Trx) DiscountCr 0.84 Tax1Dr 0.63 Tax2Dr 0.21

May-04Accounting36 Details: Document Action

May-04Accounting37 Hands-on Check / Post Document Enter manual Journal