Presentation on theme: "Slideshow 2 Setting Up Bank Services, Tax Services and Schedule Codes."— Presentation transcript:
Slideshow 2 Setting Up Bank Services, Tax Services and Schedule Codes
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 Study the steps in setting up Bank Services. Click at each step below to view the relevant windows. Step 1: Define Bank Options. In the Bank Options window, you can specify how information for the General Ledger should be prepared. Step 2: Define Bank Transaction Types Bank Transaction Types define the G/L accounts where bank transactions should be recorded. Step 3: Set Up Credit Card Types In this step, you would add the credit cards that your company accepts. Click to continue. Steps in Setting Up Bank Services Step 1: Define Options for Bank Services. Step 2: Define Transaction Types to be used in recording bank transactions. Step 3: Set up Credit Card Types. Step 4: Set up G/L Integration. Step 5: Add one or more Bank Accounts. Step 6: Record opening bank balances as of the conversion date.
Setting Up Bank Services (continued) Continue to click the steps: Step 4: Set Up G/L Integration In this step, you would select options for creating G/L transaction batches, and choose the information that you want to assign to description and reference fields for G/L transaction details. Study the explanation for each item on the Integration page. Click the TRANSACTIONS tab. Selecting this option allows you to determine when BK (bank) subledger batches are to be created instead of having them created automatically as you post batches from the subledgers (A/R and A/P). This will cause a new batch to be created in the G/L for each reconciliation posting. You have the option of having these batches automatically posted in the G/L, but COLLEGIATE chooses to do it manually. Selecting Do not Consolidate for the Consolidate G/L Batches field will provide you with details of bank transactions instead of a consolidated entry.
Setting Up Bank Services (continued) This page allows you to enter the Description, Reference and Comment fields that you want sent to the G/L from the manually entered deposits, entries, transfers and withdrawals made in Bank Services. Click the next step: Step 5: 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 the ACCOUNT tab. Study the explanation. You would enter the bank contact information on the ADDRESS page. Click the CHECK STOCKS tab. Because the Suspense account will be used for clearing errors, any transactions in the G/L Suspense account will warrant further investigation and action.
Setting Up Bank Services (continued) Check stock information is entered in order to print cheques in Accounts Payable. More than one type of cheque can be used with a bank account; for example, payroll cheques may be different from general cheques. Click the BALANCE tab. All of the fields on the Balance page are maintained by ACCPAC and cannot be edited. This page will be updated after the opening bank balance is reconciled and posted. Click to continue. Check Forms and other forms are specification files in ACCPAC that contain the print layouts of standard invoice, label, statement and cheque forms. They can be modified to fit custom forms using Crystal Enterprise Reports. COLLEGIATE plans to print cheques with an advice attached. Most banks and forms printing companies are able to supply cheques that match the standard ACCPAC forms.
Setting Up Bank Services (continued) Step 6: 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: 492 10/30 John Smith 500.00 498 10/30 Jim Muir 250.00 Study how these outstanding cheques are entered in the Withdrawals Page. Click to continue.
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, display the balance of the NORAM bank account (see right). 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. COLLEGIATE 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 Federal GST Click The ACCOUNTS tab. Allows ACCPAC to calculate GST on tax included on invoices. Indicates that you want to track detailed tax information.
Setting Up Tax Services Step 1: Set up Tax Authorities (continued) Study the ACCOUNTS page of Tax Authorities. It identifies the G/L account where GST Charged on Sales will be recorded and that GST Paid on Purchases is 100% recoverable. You need to set up a tax authority record for every tax you collect on sales or pay on purchases. Click the next step: Step 2: Set up Tax Classes Indicates the G/L account where GST collected on sales will be recorded. Indicates that GST Paid on Purchases is 100% recoverable.
Setting Up Tax Services (continued) 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. COLLEGIATE’s standard tax class is Taxable. Click and study examples of Tax Classes for sales and purchases. Click the next step: Step 3: Define Tax Rates
Setting Up Tax Services (continued) 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 the next step: Step 4: Set Up Tax Groups
Setting Up Tax Services (continued) 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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