PowerPoint Slides to accompany Copyright © 2013 by Nelson Education Ltd.

Processing Transactions in the PROJECTS Module Premium 2012

Allocating Transactions to Various Projects - -Cash Payment 3 - -Purchase on Credit 5 - -Payroll 6 - -Payroll Accrual 7 - -Sales Returns 8 Project-Related Reports -Project Income (Summary & Detail) 10 -Project Allocation 11 -Unallocated Division Amounts 12 Contents Slideshow 11A

Allocating Transactions to Projects: Cash Payment To allocate a payment to projects means to divide the purchase price among various projects. This example is a cash payment to a vendor that provides services to HotTubs. The payment is entered in the Payments Journal, to be distributed among 3 projects. Click the ALLO(cate) column now (see arrow) In the Tubs/Chemic Allocation – Payments Journal window, notice the Available Amount. Remaining % changes as you enter each allocated item. Click. As you enter the first allocation percentage, Simply calculates Amount. Click. You would then enter all the other allocations. When Total % is 100, your allocation is complete, and Remaining on top would be 0.00%. Click. Study the resulting journal entry. Notice the total COST OF SALES (debited) and the allocations to each project name. Click to continue.

Allocating Transactions to Projects: Cash Payment Study how COST OF SALES allocations shown on the payments journal entry impacts the Income Detail of each of the items on the HotTubs product line. Click then click to continue.     

Allocating Transactions to Projects: Purchase on Credit You would follow the same allocation procedure to record a purchase on credit, except you would record it in a Purchase Journal – Purchase Invoice. Click the ALLO icon now (see arrow). Study the allocation window. You can allocate 100% of the amount to one project by clicking the Apply the allocation to entire transaction box (see arrow). Click. An Information window appears. Read the information. You would click OK to clear the information box. Assume that you would proceed with the full allocation. Click. Study the Purchase Journal Entry. Notice the entry for Inventory- Chemicals. Click to continue.

Allocating Transactions to Projects: Payroll To allocate PAYROLL to various projects, you would process the allocation in the EMPLOYEES & PAYROLL module. Allocation is based on hours spent by particular employees on specific projects. Study the Payroll Run Journal at the right. You will learn how to allocate the payroll for Hillary Buchanan for $1, for working 80 hours. Click the ALLO column for BUCHANAN, HILLARY. You would do the allocation very much the same way as in the previous slides. Study the complete PAYROLL allocation for Hillary Buchanan. Click again and study the resulting Payroll Journal Entry. Notice that each WAGES EXPENSE item is allocated according to the percentage specified in the allocation and the number of hours Hillary worked on specific products. Click to continue.

Allocating Transactions to Projects: Payroll Accrual Although you may have allocated payroll by hours, payroll accruals must be allocated by percent, because Simply does not allow payroll accruals to be allocated by hours. For example, you received the payroll accrual report at the right. Study it. Click. You would enter this type of transaction in the General Journal. Click the Allo column. Click the Allo column in the General Journal now. You would enter the projects with corresponding total percent, ensuring that the Total Amount is correct and that the total allocated is 100%. Click. Study the General Journal Entry for the payroll accrual allocation after you make the credit entry. Click to continue.

Allocating Transactions to Projects: Sales Returns This procedure allocates a return of goods sold based on the original sales invoice allocation. As usual, you would enter the sales return as a negative invoice (see right), and then allocate the return accordingly. Click the Allo column now. Because you entered a negative value under Quantity on the invoice, the Allocate value is also negative. You would accept 100%. If more than one item is returned, you would follow the same procedure by entering the negative quantity on the next line, and allocating each amount 100%, specifying the project to which the return should be allocated. Click and study the resulting sales journal entry. Click to continue. Return accepted – leaking containers

Project-Related Reports Projects income Study the reports available in the Tubs/Chemic (Project) Module Reports Centre. Click. Project Income Reports The Tubs/Chemic Income Detail report shows the revenues and expenses you allocated to projects for a given time period. You can specify up to two years of data in these report. It shows individual transactions allocated to the accounts selected for the report. Click to continue.

Project-Related Reports: Tubs/Chemic Project Income Summary (continued) If you look at the Income Summary closely, you can easily determine which of the product lines make the most revenue for the company and which are contributing to the losses. For example, it is obvious below that the HT 4.0 HP 84” x 84” is the most profitable for the period July 31 to August 23 and the company incurred losses on the HT 4.6 HP 84” Enclosed. Click to continue.

Project-Related Reports Project Allocation The Project Allocation report shows allocations by project for the period you specify. It also indicates current and cumulative amounts and can include balance-forward amounts for transactions entered before the start date of the report. Project Allocation reports can include up to two years of details. Note: Once you clear transactions, project details are no longer available. Click. Study a sample Allocation Summary report. Click. Study a Detail report. Click to continue.

Project-Related Reports Unallocated Project Amounts Report The Unallocated Project Amounts report provides you with a list of transactions amounts that were unallocated or only partially allocated to a project. The results are organized by transaction type and by date. You can drill down into original transaction windows for Purchases, Payments, Sales, and Payroll transactions. Study a sample Unallocated Tubs/Chemic Amounts report. Click to continue.

EXITMore… Go back to your text and proceed from where you have left off. Review this slideshow when you finish the chapter to better prepare yourself for the next chapter. Press ESC now, then click the EXIT button.