1. Database Training – Nashville/2006 Advanced Accounting

2. 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

3. 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

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

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

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

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

8. Adv. Accounting, Kathleen GrawNashville, April 2006 4.1.9 13.5 19.7b Favorite Menu Paths

9. 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

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

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

12. Adv. Accounting, Kathleen GrawNashville, April 2006 Menu 13.20

13. Adv. Accounting, Kathleen GrawNashville, April 2006 Menu 13.20.8

14. Adv. Accounting, Kathleen GrawNashville, April 2006 Reoccurring Vouchers Enter vouchers in 13.20.8 Listing 13.20.9 (Monthly) Update 13.20.10 (Monthly)

15. Adv. Accounting, Kathleen GrawNashville, April 2006 Steps to Voucher Merchandise Batch created in 13.20.2 or 13.20.3 Sequential Voucher Register 13.20.5 Handcheck Register (if applicable) In 13.20.6 / 13.20.27 Merchandise Vouchered

16. Adv. Accounting, Kathleen GrawNashville, April 2006 Menu 13.20.3

17. Adv. Accounting, Kathleen GrawNashville, April 2006 Menu 13.20.3

18. Adv. Accounting, Kathleen GrawNashville, April 2006. Inventory Valuation 13.20.3 1 2 3 Drawbacks Only works on DC invoices No Corp Discrepancies 13.20.2 versus 13.20.3

19. Adv. Accounting, Kathleen GrawNashville, April 2006 Menu 13.20.2

20. Adv. Accounting, Kathleen GrawNashville, April 2006 Menu 13.20.2

21. Adv. Accounting, Kathleen GrawNashville, April 2006 Menu 13.20.2

22. Adv. Accounting, Kathleen GrawNashville, April 2006 Questions?

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

24. Adv. Accounting, Kathleen GrawNashville, April 2006 Menu 13.20.2

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

26. Adv. Accounting, Kathleen GrawNashville, April 2006 Average Cost Impact 122*22.97 + (120*24.417 - 120*22.952) = 2802.34 + (2930.04-2754.24) = 2978.14/122 = 24.410 for average cost 122*24.410 + (120*24.417 - 120*22.952) = 2978.02 + (2930.04-2754.24) = 3153.82/122 = 25.850 122*25.85 + (120*23.69 - 120*22.952) = 3153.70 + (2842.80-2754.24) = 3242.26/122 = 26.578

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

28. Adv. Accounting, Kathleen GrawNashville, April 2006 Average Cost

29. 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

30. Adv. Accounting, Kathleen GrawNashville, April 2006 QOH = 300 jugs Average Cost = $60.00ea PO = 200 @ $65.00ea Vendor Invoice = 200 @ $70.00ea Average Cost Example

31. Adv. Accounting, Kathleen GrawNashville, April 2006 QOH x Average Cost (500 * $60) $30,000.00 PLUS Difference on Invoice vs. PO (200*$70) – (200*65) $1000.00 _________________________ QOH (500) Average Cost Example

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

33. 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

34. Adv. Accounting, Kathleen GrawNashville, April 2006 Average Cost Impact Inventory Value @ $60 = $30,000 @ $62 = $31,000 Understated by $1,000 Sell 500 @ $80: @ $60 = $10,000 @ $62 = $9,000 Overstated by $1000 Net Income Commissions @ 3% of GP: @ $60 = $300 @ $62 = $270 Overpaid by $30 Commissions 500 jugs

35. 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

36. 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

37. Adv. Accounting, Kathleen GrawNashville, April 2006 Inventory Valuation

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

39. 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

40. 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

41. Adv. Accounting, Kathleen GrawNashville, April 2006 Voucher Widget for $100 / Billed $100 InventoryAccounts Payable 100.00 Detail Summary Average Cost Impact

42. Adv. Accounting, Kathleen GrawNashville, April 2006 Voucher Widget for $100 / Bill for $125 / No QOH InventoryAccounts Payable 100.00125.00 Summary PPV 25.00 Detail Average Cost Impact

43. Adv. Accounting, Kathleen GrawNashville, April 2006 Voucher Widget for $100 / Bill for $125 / QOH InventoryAccounts Payable 125.00 Summary Average Cost of product is updated Detail Average Cost Impact

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

45. Adv. Accounting, Kathleen GrawNashville, April 2006 Use Menu 13.20.2 and 13.20.3 Run Menu 13.20.7 at month end and use for reversing Journal Entry Inventory XXXXX Inv. AccrXXXXX Inventory Journal Entry #1

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

47. Adv. Accounting, Kathleen GrawNashville, April 2006 J/E for Store #1 Debit Inventory 02$20960.79 Credit Inventory 01$20960.79 Inventory Journal Entry #2 Scenario One

48. Adv. Accounting, Kathleen GrawNashville, April 2006 Inventory Journal Entry #2 Scenario Two J/E for Store #1 Debit Inventory 02$20960.79 Credit Intercompany 01$20960.79 Debit Intercompany 02$20960.79 Credit Intercompany 02$20960.79

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

50. Adv. Accounting, Kathleen GrawNashville, April 2006

51. 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

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

53. 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.

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

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

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

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

58. Adv. Accounting, Kathleen GrawNashville, April 2006 Questions?

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

60. Adv. Accounting, Kathleen GrawNashville, April 2006 Warranty Accounts

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

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

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

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

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

66. Adv. Accounting, Kathleen GrawNashville, April 2006 Questions?

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

68. Adv. Accounting, Kathleen GrawNashville, April 2006 Menu 14

69. Adv. Accounting, Kathleen GrawNashville, April 2006 12.4.3 14.1.1 (for each company) Add to financial statements Setting up a GL account

70. Adv. Accounting, Kathleen GrawNashville, April 2006 Menu 12.4.3

71. Adv. Accounting, Kathleen GrawNashville, April 2006 Menu 14.1.1

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

73. Adv. Accounting, Kathleen GrawNashville, April 2006 Journal Entries 1.Enter JE 14.1.3 or 14.1.4 2.Print & Review JE 14.1.13 & 14.1.14 3.Update Trial Balance 14.2.4

74. Adv. Accounting, Kathleen GrawNashville, April 2006 Menu 14.1

75. Adv. Accounting, Kathleen GrawNashville, April 2006 Menu 14.1.3

76. Adv. Accounting, Kathleen GrawNashville, April 2006 Menu 14.2

77. Adv. Accounting, Kathleen GrawNashville, April 2006 Menu 14.3

78. Adv. Accounting, Kathleen GrawNashville, April 2006 Menu 14.5

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

94. 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

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

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

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

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

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

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

101. 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

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

103. Adv. Accounting, Kathleen GrawNashville, April 2006 Product/GL Control Menu 12.3.3

104. Adv. Accounting, Kathleen GrawNashville, April 2006 Accounting Upgrades Documentation Handout – Accounting Upgrades 2006.1

105. Adv. Accounting, Kathleen GrawNashville, April 2006 Upgrade Suggestions

106. Adv. Accounting, Kathleen GrawNashville, April 2006 Session Evaluations

107. Database Training – Nashville/2006