Database Training – Nashville/2006 Advanced Accounting

Adv. Accounting, Kathleen GrawNashville, April 2006 Who am I? Johnstone Supply Santa Ana/Laguna Hills Ten Years Database User Ten Years Undergrad B.A. Texas Tech University Grad School MBA w/Acctg Specialty Cal State University Database Consultant Three Years Conference Instructor Four Years Kathleen Graw

Adv. Accounting, Kathleen GrawNashville, April 2006 Ground Rules ASK Questions Come & Go As you Please Keep ?’s Relevant To all NO ? Is stupid Do Not Run with Scissors No Name Calling Simple Rules Do Not Run with Scissors

Adv. Accounting, Kathleen GrawNashville, April 2006 Ground Rules Cont’d MY WAY Isn’t The ONLY Way

Adv. Accounting, Kathleen GrawNashville, April 2006 Topics Quick Tips & Tricks 1 Accounts Payable 2 Average Cost & Balancing Inventory 3 Warranty 4 General Ledger 5

Adv. Accounting, Kathleen GrawNashville, April 2006 Topics Aging 6 End of Year Close 7 Miscellaneous Accounting Functions 8

Adv. Accounting, Kathleen GrawNashville, April 2006 First Topic 1 Quick Tips & Tricks – Ways to make your job easier!

Adv. Accounting, Kathleen GrawNashville, April b Favorite Menu Paths

Adv. Accounting, Kathleen GrawNashville, April 2006 ft Create a folder on C drive” pick Enter “ft” at any printer select prompt Will be called “ft.txt” in C:\\pick Text file or convert to Excel format File Transfer

Adv. Accounting, Kathleen GrawNashville, April 2006 If users available – multiple ports Turn on Scroll Bar Accuterm Settings

Adv. Accounting, Kathleen GrawNashville, April 2006 Second Topic 2 Accounts Payable – Making paying your vendors easier!

Adv. Accounting, Kathleen GrawNashville, April 2006 Menu 13.20

Adv. Accounting, Kathleen GrawNashville, April 2006 Menu

Adv. Accounting, Kathleen GrawNashville, April 2006 Reoccurring Vouchers Enter vouchers in Listing (Monthly) Update (Monthly)

Adv. Accounting, Kathleen GrawNashville, April 2006 Steps to Voucher Merchandise Batch created in or Sequential Voucher Register Handcheck Register (if applicable) In / Merchandise Vouchered

Adv. Accounting, Kathleen GrawNashville, April 2006 Menu

Adv. Accounting, Kathleen GrawNashville, April 2006 Menu

Adv. Accounting, Kathleen GrawNashville, April Inventory Valuation Drawbacks Only works on DC invoices No Corp Discrepancies versus

Adv. Accounting, Kathleen GrawNashville, April 2006 Menu

Adv. Accounting, Kathleen GrawNashville, April 2006 Menu

Adv. Accounting, Kathleen GrawNashville, April 2006 Menu

Adv. Accounting, Kathleen GrawNashville, April 2006 Questions?

Adv. Accounting, Kathleen GrawNashville, April 2006 Third Topic 3 Average Cost & Balancing Inventory – Accounting for your biggest asset.

Adv. Accounting, Kathleen GrawNashville, April 2006 Menu

Adv. Accounting, Kathleen GrawNashville, April 2006 Average Cost Impact BUT

Adv. Accounting, Kathleen GrawNashville, April 2006 Average Cost Impact 122* (120* *22.952) = ( ) = /122 = for average cost 122* (120* *22.952) = ( ) = /122 = * (120* *22.952) = ( ) = /122 =

Adv. Accounting, Kathleen GrawNashville, April 2006 Inventory Valuation $$ Quantity on Hand Purchase Price Variance (PPV) Average Cost

Adv. Accounting, Kathleen GrawNashville, April 2006 Average Cost

Adv. Accounting, Kathleen GrawNashville, April 2006 Calculation Step One Step Two End Result QOH x Average Cost New Average Cost Diff. on Inv v. PO

Adv. Accounting, Kathleen GrawNashville, April 2006 QOH = 300 jugs Average Cost = $60.00ea PO = $65.00ea Vendor Invoice = $70.00ea Average Cost Example

Adv. Accounting, Kathleen GrawNashville, April 2006 QOH x Average Cost (500 * $60) $30, PLUS Difference on Invoice vs. PO (200*$70) – (200*65) $ _________________________ QOH (500) Average Cost Example

Adv. Accounting, Kathleen GrawNashville, April 2006 $62.00 New Average Cost Average Cost Example

Adv. Accounting, Kathleen GrawNashville, April 2006 Balance Sheet & Income Statement Inventory Valuation Impact Overstate Inventory $ Overstate Profits Overpay Commissions Understate Inventory $ Understate Profits Underpay Commissions Widespread Impact

Adv. Accounting, Kathleen GrawNashville, April 2006 Average Cost Impact Inventory $60 = $62 = $31,000 Understated by $1,000 Sell $60 = $62 = $9,000 Overstated by $1000 Net Income 3% of $60 = $62 = $270 Overpaid by $30 Commissions 500 jugs

Adv. Accounting, Kathleen GrawNashville, April 2006 Average Cost Impact Inventory Value Devalued your Company by understating your inventory. Paying taxes on income that you didn’t really realize. Net Income Paid out more to sales people than you needed to and inaccurately reduced your bottom line & affected cash flow. Commissions Bad Avg. Cost

Adv. Accounting, Kathleen GrawNashville, April 2006 Accurate reflection of Gross Profit by month Accurate reflection of Gross Profit by part Accurate reflection of Net Income No large inventory adjustments at year end Better handle on inventory value and turns Average Cost reflects true cost Average Cost Impact

Adv. Accounting, Kathleen GrawNashville, April 2006 Inventory Valuation

Adv. Accounting, Kathleen GrawNashville, April 2006 Detail Summary Detail vs. Summary

Adv. Accounting, Kathleen GrawNashville, April 2006 Impact General Ledger (Detail)? YES NO Stock AdjustmentsX Receive in Inventory X Voucher/Accounts PayableX Month End Journal EntriesX Detail General Ledger Implications

Adv. Accounting, Kathleen GrawNashville, April 2006 Impact General Ledger (Summary)? YES NO Stock AdjustmentsX Receive in Inventory X Voucher/Accounts PayableX Month End Journal EntriesX Summary General Ledger Implications

Adv. Accounting, Kathleen GrawNashville, April 2006 Voucher Widget for $100 / Billed $100 InventoryAccounts Payable Detail Summary Average Cost Impact

Adv. Accounting, Kathleen GrawNashville, April 2006 Voucher Widget for $100 / Bill for $125 / No QOH InventoryAccounts Payable Summary PPV Detail Average Cost Impact

Adv. Accounting, Kathleen GrawNashville, April 2006 Voucher Widget for $100 / Bill for $125 / QOH InventoryAccounts Payable Summary Average Cost of product is updated Detail Average Cost Impact

Adv. Accounting, Kathleen GrawNashville, April 2006 EOM Inventory Procedures

Adv. Accounting, Kathleen GrawNashville, April 2006 Use Menu and Run Menu at month end and use for reversing Journal Entry Inventory XXXXX Inv. AccrXXXXX Inventory Journal Entry #1

Adv. Accounting, Kathleen GrawNashville, April 2006 Multi Stores: EOM Account for inventory transfers S01/S02/S03 Inventory Journal Entry #2

Adv. Accounting, Kathleen GrawNashville, April 2006 J/E for Store #1 Debit Inventory 02$ Credit Inventory 01$ Inventory Journal Entry #2 Scenario One

Adv. Accounting, Kathleen GrawNashville, April 2006 Inventory Journal Entry #2 Scenario Two J/E for Store #1 Debit Inventory 02$ Credit Intercompany 01$ Debit Intercompany 02$ Credit Intercompany 02$

Adv. Accounting, Kathleen GrawNashville, April 2006 Stock Adjustments Inventory Journal Entry #3

Adv. Accounting, Kathleen GrawNashville, April 2006

Adv. Accounting, Kathleen GrawNashville, April 2006 Reopening Receivers If you do it – have to reopen the first & only receiver on the PO OR It throws out your AP/GL Reconciliation Reopening Purchase Orders

Adv. Accounting, Kathleen GrawNashville, April 2006 Reopening Purchase Orders

Adv. Accounting, Kathleen GrawNashville, April 2006 Physical Inventory Be sure to make note of the final variance amount that you update since you will need to make the journal entry on the books to balance the detail to the summary. You debit/credit inventory and an income statement account with this variance amount.

Adv. Accounting, Kathleen GrawNashville, April 2006 Other Issues to Consider Warranty’s Impact Store Returns Buyback Dropships Non-Inventory Items (Z95 items)

Adv. Accounting, Kathleen GrawNashville, April 2006 Monthly Reconciling EOM Journal Entries Average Cost Pieces to Valuing Inventory Time & Effort

Adv. Accounting, Kathleen GrawNashville, April 2006 Documentation Inventory Reconciliation Buyback Handout – Reconciling Inventory Detail & Summary Handout – Buyback Processes & Procedures

Adv. Accounting, Kathleen GrawNashville, April 2006 Documentation Dropships Handout – Dropships

Adv. Accounting, Kathleen GrawNashville, April 2006 Questions?

Adv. Accounting, Kathleen GrawNashville, April 2006 Fourth Topic 4 Warranty – What goes on behind the scenes

Adv. Accounting, Kathleen GrawNashville, April 2006 Warranty Accounts

Adv. Accounting, Kathleen GrawNashville, April 2006 Widget Avg. cost = $10 Sale Price = $12 Credit from Vendor = $25 Warranty & the General Ledger

Adv. Accounting, Kathleen GrawNashville, April 2006 Warranty Reconciling EOM Balancing Unclaimed Warranties Claimed Warranties – AR Inventory?

Adv. Accounting, Kathleen GrawNashville, April 2006 Warranty & the General Ledger Warranty AR Warranty Clearing

Adv. Accounting, Kathleen GrawNashville, April 2006 Warranty & the General Ledger

Adv. Accounting, Kathleen GrawNashville, April 2006 Documentation Warranty Handout – Warranty

Adv. Accounting, Kathleen GrawNashville, April 2006 Questions?

Adv. Accounting, Kathleen GrawNashville, April 2006 Fifth Topic 5 General Ledger – Reporting the money you made

Adv. Accounting, Kathleen GrawNashville, April 2006 Menu 14

Adv. Accounting, Kathleen GrawNashville, April (for each company) Add to financial statements Setting up a GL account

Adv. Accounting, Kathleen GrawNashville, April 2006 Menu

Adv. Accounting, Kathleen GrawNashville, April 2006 Menu

Adv. Accounting, Kathleen GrawNashville, April 2006 Setting up Financial Statements

Adv. Accounting, Kathleen GrawNashville, April 2006 Journal Entries 1.Enter JE or Print & Review JE & Update Trial Balance

Adv. Accounting, Kathleen GrawNashville, April 2006 Menu 14.1

Adv. Accounting, Kathleen GrawNashville, April 2006 Menu

Adv. Accounting, Kathleen GrawNashville, April 2006 Menu 14.2

Adv. Accounting, Kathleen GrawNashville, April 2006 Menu 14.3

Adv. Accounting, Kathleen GrawNashville, April 2006 Menu 14.5

Adv. Accounting, Kathleen GrawNashville, April 2006 Sixth Topic 6 Aging – Ways to look at the money customers owe you

Adv. Accounting, Kathleen GrawNashville, April 2006 Menu 35.6, Screen #2

Adv. Accounting, Kathleen GrawNashville, April 2006 Option #1 by Month End

Adv. Accounting, Kathleen GrawNashville, April 2006 Option #1 by Month End

Adv. Accounting, Kathleen GrawNashville, April 2006 Option #1 by Month End

Adv. Accounting, Kathleen GrawNashville, April 2006 Option #1 by Month End

Adv. Accounting, Kathleen GrawNashville, April 2006 Option #2 by Due Date

Adv. Accounting, Kathleen GrawNashville, April 2006 Option #2 by Due Date

Adv. Accounting, Kathleen GrawNashville, April 2006 Option #2 by Due Date

Adv. Accounting, Kathleen GrawNashville, April 2006 Option #2 by Due Date

Adv. Accounting, Kathleen GrawNashville, April 2006 Option #3 by Invoice Date

Adv. Accounting, Kathleen GrawNashville, April 2006 Option #3 by Invoice Date

Adv. Accounting, Kathleen GrawNashville, April 2006 Option #3 by Invoice Date

Adv. Accounting, Kathleen GrawNashville, April 2006 Option #3 by Invoice Date

Adv. Accounting, Kathleen GrawNashville, April 2006 Seventh Topic 7 End of Year – Putting one year behind you and starting another one.

Adv. Accounting, Kathleen GrawNashville, April 2006 End of Year procedures 1.AR Month-end close rolls into Year End *Confirm with DST 2.Close 12 th month AP 3.Close year AP *MUST happen before entries for new year 4.Close 12 th month GL *Manually Rollover NI 5.Close year GL *NO 13 th month

Adv. Accounting, Kathleen GrawNashville, April 2006 Documentation EOY Procedures Handout – EOY Close

Adv. Accounting, Kathleen GrawNashville, April 2006 Eighth Topic 8 Miscellaneous – Things you may/may not know…

Adv. Accounting, Kathleen GrawNashville, April 2006 Service Charges Menu 4.3

Adv. Accounting, Kathleen GrawNashville, April 2006 System Purge Parameters Menu 28.0

Adv. Accounting, Kathleen GrawNashville, April 2006 System Purge Parameters Menu 28.0

Adv. Accounting, Kathleen GrawNashville, April 2006 System Purge Parameters Menu 28

Adv. Accounting, Kathleen GrawNashville, April 2006 Menu 11 Reporting Variances Different Sales files capture different things *Customer detail file Variances *Freight *Misc Charges *Branch Sales *Returns

Adv. Accounting, Kathleen GrawNashville, April 2006 Product/GL Control Only works with Product CLASS in Product MASTER

Adv. Accounting, Kathleen GrawNashville, April 2006 Product/GL Control Menu

Adv. Accounting, Kathleen GrawNashville, April 2006 Accounting Upgrades Documentation Handout – Accounting Upgrades

Adv. Accounting, Kathleen GrawNashville, April 2006 Upgrade Suggestions

Adv. Accounting, Kathleen GrawNashville, April 2006 Session Evaluations

Database Training – Nashville/2006