CNET_ERP Accounting Management Course # 2505

Contents Setting up CNET_ERP Accounting CNET ERP Accounting Architecture Source Documents Journals Posting Ledger Reconciliation and auditing Closing and Reporting

Setting up CNET_ERP Accounting Part One

Setting up CNET_ERP Accounting Maintain Global System Library (GSL) Maintain Chart of Account Setup accounting Period Default account setting Account integration Beginning balance Proof reading and checking setting

Maintain Global System Library (GSL) 1.1

Company setup Company Name TIN No VAT No System Type Address

Global System Library (GSL) Items - Non processed raw material Products – Processed value added Product Finished Product and None finished Product. Customers – Buyers, Guests, Patients… Suppliers – Seller, vendors, provider Employees – Workers of the organization Miscellaneous – Various

Global system library illustration Global System Library (GSL) Sales Module Inventory Module Accounting Module FBM Module Customer Item Product Employee Supplier Item Product Employee Customer Supplier Employee Item Product

Item/Products General Price list Supplier list (Only for item) Balance list Specification list Catalogue list Package Advanced Master record Medicine, Book, Electronic, Garment,

Customer/Supplier General Address Advanced Local Address International Address Advanced Picture Translator

Employee General Address Advanced Local Address International Address Picture Translator

Miscellaneous Bank Tax Message Lookup Table Item category Store Exchange rate Department Cart Period Commission Font Fixed Asset Class Cost factor

Methods of Maintaining GSL Automatic (Using data migrator) From Excel (Standard formats) From Pervious version of CNET_ERP V.4.0 During Synchronization Fast Registration Manual maintenance All GSL maintenance are found on maintain main menu. Maintain history

Methods of editing GSL From maintain dialogue box From editing list Must select the GSL to edit Make changes and save From editing list Excel like sheet Has searching criteria Multiple editing at once Takes effect after saved Edit history

Maintain Chart of Account 1.2

Chart of account CNET_ERP Accounting follows A tree structure / parent-child structure. Account type Control account Subsidiary account Standard account types are provided in the system dictionary. All transaction are made at subsidiary level Coding standard Max 6 digit for Control Max 6 digit for subsidiary Select separator from special character “-,_,*,+,.,/,\,|, space,<,>,^,@,!,#,$,%,&,{,[,],},:,;,”,’,. Max total code length <= 13 “100010-300040”

Maintain Chart of Account Cash Account On hand, at bank, pity cash, purchaser … Revenue Account Item categories, room, board, add. Charge… Expense Account General, utility, maintenance, departments… Account payable (A/P account) Suppliers, vendors… Account receivable (A/R account) Customers, Agents, Dealers… Tax account VAT, Withholding, Income tax ... Default Accounts

1.3 Setup accounting Period Ethiopian or European Period Number of period Can be 12, 24, 36, 48 Set a Starting Date Automatically generate accounting periods.

Default account setting 1.4

Default Account Setting SalesTax VAT SalesDiscount Discount AdditionalCharge Service charge CashAtBank Checking account CashAtHand Main cashier AccountPayable A/P AccountRecivable A/R WithHoldingReceivable WithHoldingPayable PettyCash

Default Account Setting Sales Revenue Inventory Stock CostOfSales Cost of sales IncomeTax OtherIncome PurchaseDiscount GoodsInTransit GIT DamagedExpense Breakage WorkInProcess WIP DepreciationExpense

1.5 Account Integration

Account integration chart Item/Product Cost of sales Inventory Customers Revenue Account Receivable Suppliers Account Payable Cash at bank Room/Board Cash on hand ... Bank/Credit card ... ... User/Cashier ...

Account integration Item/Product Customer/Supplier User (Cashier) Account setting Credit card account setting Room Revenue account setting Board revenue account setting Bank account setting

Item/Product Account integration By Item category Parent account to child category Child Category to items account inheritance By individual item Accounts Revenue Cost of sales Inventory

Customer/supplier Account integration By customer category Maintaining account for customer category Account inheritance By individual customer

Cashier Account Setting All user that transact cash must have account Cash on hand account If no account assigned for a user system takes default cash on hand account

Credit card account setting Miscellaneous section All credit card must have account Cash at bank or account receivable If no account assigned for a credit card system takes default cash at bank account

Room Revenue account setting (Hotel) Assuming different Room type revenue will be posted in different account Room type based revenue account If no account assigned for a room type, system takes default sales account

Board revenue account setting (Hotel) Assuming different board revenue will be posted in different account Mostly board revenue is a food revenue Room type based revenue account If no account assigned for a room type, system takes default sales account

Beginning balance 1.6

Beginning balance Account balance Item/Product beginning balance Customer/Supplier beginning balance Employee beginning balance

Account beginning balance Periodical Balance will be effective as of the selected Accounting period Must balance A trial balance Natural balance is respected Proof read conformation

Item/Product beginning balance Must have a store and one of the store must be main store On item maintain form, balance list Must select the store and type in the balance in the respective field Beginning cost must be on the main store Beginning balance can be on the respective store

Customer/Supplier beginning balance On maintain customer form general tab Must have account

Employee beginning balance On maintain employee form general tab Must have account Other alternative is on accounting setting user account setting Especially all cashiers must have account

1.7 Proof reading and checking setting GSL Report Chart of account Period report GSL check list for account integration No account, No category, No supplier... Beginning Balance Report Default Account setting Report

CNET_ERP Accounting Architecture Part II

CNET_ERP Accounting Architecture Layered detachable architecture Source document layer Voucher / Transaction Journal layer Five /5/ Journal Leger layer General lager (Group by account) Trial balance (Summarized by account)

Architectural illustration Leger Journal Source Doc.

All Business Follows the same pattern. GAAP 21st century Accounting

2.1 Vouchers (Transactions) Source Document layer

Vouchers (Transactions) Transactions are made out of one or many GSL Transactions are curried via Vouchers Vouchers are building blocks of subsystems There are 39 Vouchers in 5 Subsystems in CNET_ERP V.5.0 Vouchers are source documents Will take effect after being issued Voucher will be further processed to produce Journal

Kinds of Vouchers With respect to structure Line Item Voucher (29 – 75%) None line item Voucher (10 – 25%) With respect to Stock movements Stock Moving None Stock moving With respect to Accounts Journal Voucher None Journal Voucher

Vouchers and Sub systems division Core Sub system Sales (7) Inventory (15) Accounts (7) Extended Sub system Front office management (3) Productions management (7) Human Resource management (-)

Rules of Vouchers Sequentially Numbered Need time stamp Need one or more owner Should be contained in a single page Can not be modified after being issued Need a copy distribution management (CDM) Can be void Must support multiple print size and formats Has execution procedure

Line Item and None Line item Vouchers All Sales, inventory and production Vouchers are line item vouchers All Accounting Vouchers and FOMS vouchers are non line item vouchers Dual Life vouchers Credit sales (FOMS Room sales) Refund (FOMS Room Refund)

Parts of line item voucher Value section Cart Section Batch section Payment method Store Section Operation Section Reference section Purpose section Address section Item Information/ (Nested reference) Command section Item collector Term Section Summery Section Voucher no Section

Parts of non Line Item Voucher Address Section Reference section (Nested) Tax Section Account Section Voucher No Section Amount Section Description Section Cart Section Payment method section Operation Section

Sales subsystem Sales Order Performa Invoice Cash sales Invoice Credit sales invoice Sales return (Refund) Consignment sales invoice Consignment sales return

Item moving Vouchers (Sales) SN Voucher Effect 1 Cash Sales Invoice - 2 Credit Sales Invoice 3 Sales Return + 4 Consignment Sales Invoice (-) 5 Consignment sales Return (+)

Inventory Sub system Store Request Store Issue Voucher Store Transfer Voucher Goods Receiving Voucher Cash Goods Receiving Credit Goods Receiving Dispensary Goods Receiving Consignment Goods Receiving Purchase Request Purchase order Store Return Voucher Disposal Voucher Stock Adjustment voucher Supplier Return Consignment Supplier return Delivery Order

Item moving Vouchers (Inventory) SN Voucher Effect 1 Goods receiving Cash, Credit, Dispensary, Consignment + 2 Store Issue Voucher +- 3 Store Transfer Voucher 4 Supplier return Voucher - 5 Disposal Voucher 6 Store Return Voucher 7 Stock Adjustment Voucher 8 Delivery Order (-) 9 Consignment Supplier return

None Item moving Voucher SN Module Voucher 1 Sales Sales Order Performa Invoice 2 Inventory Store Request Purchas Request Purchase Order 3 Accounting All Accounting Vouchers are non item moving vouchers 4 FOMS All FOMS Voucher are non item moving vouchers

Accounting Vouchers Cash Receipt Voucher Bank Advise Voucher Bank Payment Voucher Pity cash Payment Voucher I O U Voucher Bank Deposit Voucher Payment Order Voucher

None Journal Vouchers Inventory Subsystem Sales Subsystem Production Store Request Purchase Request Purchase Order Consignment Receiving Consignment Return Stock Transfer Voucher Sales Subsystem Sales Order Performa Consignment Invoice Consignment Return Production Job Request Job order Batch Voucher

Journal Voucher Chart Journal Voucher Subsystem Journal Cash Sales Invoice Credit Sales Invoice Sales SJ Payment Order Cash Goods Receiving Credit Goods Receiving Accounting Inventory PJ Cash Receipt Voucher Bank advise Voucher RJ Bank Payment Voucher Petty cash Payment Voucher DJ

General Journal Journal Voucher Subsystem Journal General Journal Sales Return (Refund) Supplier Return Disposal Stock Adjustment Bank Deposit Slip Formulation Voucher Packing List Voucher Store Issue Voucher Accounting Sales Inventory Production GJ

Working on Accounting Vouchers

Lists of accounting Vouchers Cash Receipt Voucher Bank Advise Voucher Bank Payment Voucher Pity cash Payment Voucher Bank Deposit Voucher Payment order Voucher I O U Voucher

Cash Receipt Voucher Used to receive cash from different source Will trigger cash receipt Journal Can be done in two different methods Referenced preparation Will produce cash collection advice Keep monitoring the remaining balance Can be sorted by specific reference owner VAT and Withholding will be calculated from Ref. Line item detail will be shown in balloon. Direct preparation

Bank Advise Voucher Used to receive cash from different source through bank transfer. Will trigger cash receipt Journal Can be done in two different methods Referenced preparation Will produce cash collection advice Keep monitoring the remaining balance Can be sorted by specific reference owner VAT and Withholding will be calculated from Ref. Line item detail will be shown in balloon. Direct preparation

Disbursement Procedure Stock purchase Pre paid Purchase (Purchase Order) Post Paid Purchase (Credit Good Receiving) Service purchase (Payment order) Refund (Sales Return) Payment can be made By BPV or PCPV

Bank Payment Voucher Used to Disburse cash to different party from Bank Will trigger cash Disbursement Journal Can be done in two different methods Referenced preparation Will produce cash collection advice Keep monitoring the remaining balance Can be sorted by specific reference owner VAT and Withholding will be calculated from Ref. Line item detail will be shown in balloon. Direct preparation

Pity cash Payment Voucher Used to Disburse cash to different source from pity cash. Will trigger Cash Disbursement Journal Can be done in two different methods Referenced preparation Will produce cash collection advice Keep monitoring the remaining balance Can be sorted by specific reference owner VAT and Withholding will be calculated from Ref. Line item detail will be shown in balloon. Direct preparation

Bank Deposit Voucher Used to transfer cash from cash on hand account to cash at bank account It also tracks shortage and overage of cash on hand cashier account. Can be sorted by valid cashier account Only cash sales and cash receipt will be referred Refund will not be considered

Payment order Voucher Mostly used as a reference document to issue payments Mostly used to process service purchase Will trigger a purchase journal

I O U Voucher Mostly used to control cash flow within the company employees Can be used to issue lone Can be used to transfer cash custodian

Bank check Incoming and outgoing check Outgoing check printing facility Supports 14 check coordinates in the system Check reprinting security Any resizable tray printer can be used Actual check must be used from the stab. Check must be manually signed

Reference Advisers If a voucher is made as a result of other Vouchers. When cash receipt is made Cash collection Advise When Bank payment Voucher or Pity cash payment voucher is made Payment Advises

e-Box file (Document list)

Accounting system Work flow Sales Journal Sales e_box file Item Purchase Journal Voucher Transaction Product Inventory e_box file Customer Cash receipt Journal General Ledger Financial Statements Supplier Disbursement Journal Accounting e_box file Employee Mesilanous General Journal

Types of e box file Global System library Box file Subsystem e box file Sales Inventory Accounting – check manager, Cart, tax… Production *FOMS (working environment) House keeping Document POS manager - cash, credit, Refund, Report, Dashboard, remote POS manager

Components of e-box file Tool Bar Search engine Tabs Contextual menu Side Dock window Bottom Dock window Status Bar

GSL Document list Display GSL components Intelligent Search Engine Item, Product, Customer, Supplier, Employee and master records Intelligent Search Engine Contextual menu for desired operation Standard spared sheet interface Incomplete information trouble Shooting GSL aging component meter

Subsystem e Box File (Document List) Electronic archive of the transactions (Voucher) Organized in respective sub system Sorted and indexed in different criteria Colored according to their operation done Line item detail Journal Detail Owner detail Voucher general detail Contextual menu for desired operation Standard spared sheet interface Enhanced tool bar for various operation

POS manager Tree like POS organization by POS type Displays POS Vouchers POS Dash Board Generic POS report Enable remote POS connection Enable summarized remote Journalization

Working on accounting Document Accounting Voucher Check manager General ledger Tax Cart

Accounting Voucher 7 Accounting Vouchers Side dock able details Voucher operators Color legend Other many voucher information Bottom dock able details Mainly Journal, if the document is posted Contextual menus

Check manager Organize and manage checks. Issued and received check log. Check liquidity calendar. Monthly calendar. Forecast bank balance. Limit the amount of money discharged daily.

General ledger Posted journals Details on the bottom dock able Editing journal facility Journal trouble shooting

Tax Display transactions made that includes specific transaction

Cart Display transactions collected by specific Cart Drill down facility is provided Voucher detail is provided

2.2 Posting Routines Journal Layer

Journal type SN Description Abbreviation Remark 1 Sales Journal SJ 2 Cash receipt journal RJ 3 Disbursement journal DJ 4 Purchas journal PJ 5 General journal GJ

Journal Voucher Chart Journal Voucher Subsystem Journal Cash Sales Invoice Credit Sales Invoice Sales SJ Payment Order Cash Goods Receiving Credit Goods Receiving Accounting Inventory PJ Cash Receipt Voucher Bank advise Voucher RJ Bank Payment Voucher Petty cash Payment Voucher DJ

General Journal Journal Voucher Subsystem Journal General Journal Sales Return (Refund) Supplier Return Disposal Stock Adjustment Bank Deposit Slip Formulation Voucher Packing List Voucher Store Issue Voucher Accounting Sales Inventory Production GJ

Journal Parameters Journal Type Reference Date Period Reason Debit Credit

... Continued Is a parallel recording of transaction in a form of Dr and Cr Can be made real time and or batch per journal type All parameters are selected automatically

Posting Methods Real time Posting Batch Posting /Document list/ Automatically Will produce a printable journal sheet. Semi automatically Batch Posting /Document list/ Singular posting Multiple posting Remote posting

Singular batch posting Will be done from document list A single journal voucher must be selected Journalize command from contextual menu System build the journal and display it The displayed journal will be posted on post command button If the voucher has been posted previously, the new posting will be overwritten

Multiple batch posting Will be done from document list A group of journal vouchers must be listed Use Journalize all command button from the tool bar The system displays a progress bar showing the posting of the journal It may take longer time to complete if listed journal voucher are many. If the voucher has been posted previously, the new posting will be overwritten

Remote batch posting Will be done from pos manager document list Mostly used to journalize remotely made sales transaction in to central ledger. The vouchers will be summarized before posting Journalize command from tool bar System build the journal and display it The displayed journal will be posted on post command button

Journal building procedure System takes standard journal template System assign account no according to setting made in chapter 1 System gives priorities for account integration System uses default account setting as a fail over mechanism

Sales Journal Credit Sales Journal Cash Sales Journal *Credit sales Invoice Credit sales summery (POS Manager) Daily resident summery Cash Sales Journal *Cash sales invoice Cash sales summery (POS Manager)

Sales Journal structure SN Debit account Credit account Remark 1 Cash/ A/R Integration / Default 2 Revenue Integration 3 Cost of sales 4 Inventory 5 Sales Discount Default 6 Service charge 7 VAT

Resident summery Journal structure SN Debit account Credit account Remark 1 A/R Default 2 Room Revenue Integration 5 Sales Discount 6 Service charge 7 VAT

Cash Receipt Journal Cash Receipt Voucher Bank Advise Voucher Affect cash On hand /user account, default cash on hand/ At bank Check /regular checking account/ Credit card /Credit card account integration or default cash at bank. Bank Advise Voucher Affect only cash at bank

Cash Receipt Journal Structure SN Debit account Credit account Remark 1 Cash OH/ AB Integration/default 2 A/R Integration/ default 3 VAT Default 4 With holding Where OH is cash on hand, and AB is cash at bank.

Purchase Journal Inventory Purchase Service purchase Cash Goods Receiving Voucher Credit Goods Receiving Voucher Service purchase Payment order

Purchase Journal structure for Inventory purchase SN Debit account Credit account Remark 1 Cash/ A/P Integration/default 2 Inventory Integration 5 Pur. Discount Default 6 Service charge 7 VAT

Purchase Journal structure for Service purchase SN Debit account Credit account Remark 1 A/P Default/ Integration 2 Expense Selection 5 With holding Default 7 VAT

Disbursement Journal Bank Payment Voucher Pity cash payment voucher Only affect cash at bank account Pity cash payment voucher Only affect cash on pity cash account

Disbursement Journal Structure SN Debit account Credit account Remark 1 Cash OH/ AB Default / Integration 2 A/P 3 With holding Default 4 VAT

General Journal Manual General Journal Automatic General Journal Free account journal Using General Journal Interface Used for adjustment Automatic General Journal From adjustment Voucher

Automatic General Journal Sales Return (Refund) Supplier Return Disposal Stock Adjustment Bank Deposit Slip Formulation Voucher Packing List Voucher Store Issue Voucher

Sales Return Journal structure SN Debit account Credit account Remark 1 Cash/ A/R Default / Integration 2 Revenue 3 Cost of sales 4 Inventory 6 Service charge Default 7 VAT

Supplier Return Journal structure SN Debit account Credit account Remark 1 Cash/ A/R Default / Integration 2 Inventory 5 Discount Default 6 Service charge 7 VAT

Disposal Journal structure SN Debit account Credit account Remark 1 Damaged Expense/ A/P If it is supplier fault and it is not paid yet, affect A/P 2 Inventory Integration

Bank Deposit Journal structure SN Debit account Credit account Remark 1 Cash On Hand-x Integration 2 Cash On Hand-y ... 3 Cash At Bank-x 4 Cash At Bank-y

Formulation Journal structure SN Debit account Credit account Remark 1 Work In Process (WIP) 2 Inventory1 Of item one 3 Inventory2 Of Item two ...

Packing list Journal structure SN Debit account Credit account Remark 1 Work In Process (WIP) 2 Inventory Product

Store issue Journal structure Not always SN Debit account Credit account Remark 1 Inventory1 2 Inventory2 ... 3 Cost of sales1 4 Cost of sales2

Editing Posted Journal From the Source document Generate Journal From the general ledger View Posted journal Overwriting or inserting journal

Working on general Journal Date Period Reference Journal Type Account debit and credit

None transaction Journal Sales Summery journal (SJ) Pos Manager Resident summery journal (SJ) Hotel room sales General Journal (GJ) Manual general journal

Journal Sheet Will be displayed every time you post journal. It is printable. Support multiple paper size. A4, A5, A15, Roll paper... Centralized journal printer can be used. Can be documented with the source document.

Reconciliation and auditing Part four

Reconciliation Account reconciliation Mostly used to reconcile cash accounts Has print out Needs ending balance Each account must be cleared after reconciliation

Cross Checking By checking the respective documents. By looking in to the general ledger document. By journal report.

By checking the respective documents Every posted Journal voucher has a journal listing on the bottom dock window Voucher detail

By looking in to the general ledger document Posted and un posted documents Defective journals Tracing Voided Document’s journal Journal listing at the bottom

Audit & Reports

Reports Classification GSL Report Subsystem Reports Voucher Reports Analytical Reports Industry standard reports Dash Board reports Security Report Setting Reports

GSL Reports Item Products Customer Supplier Employee Miscellaneous

Voucher Reports Made by direct analysis of the voucher There are 15 types of voucher report 7 of the report are only made for line item vouchers The rest 8 of them serves both types Therefore 15 report types * 29 voucher = 435 reports 8 report types * 10 vouchers = 80 reports There are total of 515 Voucher reports

Voucher Reports Chart SN Voucher Remark 1 Categorized Line Item Voucher only 2 Categorized summarized 3 Summarized 4 Running Both 5 Detail 6 Summarized by to 7 Summarized by Machine 8 Summarized by Date 9 Summarized by operator 10 Item in voucher 11 Removed 12 Transaction Reference 13 Void Report 14 Voucher Operation 15 Categorized Summarized by to

Sales Subsystem report Sales Voucher Reports Profitability report Business Agent Summery by to and type Summarized sales report Commission report Price change Sales history report Hospitality industry Reports Daily Sales Summery Profitability report Sales Report (sales center) Categorized charge type Summarized charge type Summarized Waiter Waiter efficiency Cash V Room Charge Item modifier

Inventory report Inventory vouchers report Reorder Inventory closing Store report Purchase report

Front office Report (Hotel) Front office Voucher reports Analysis Report Front office report Shift end report Day end report Month end report House keeping Report PMS Maintain Report

Financial Report Accounting Voucher reports Journal report General ledger report Summery Detail Trial Balance Balance sheet Income statement Cash flow Retained earning

Dash Board reports Item Product Customer Supplier Security Employee (HRM)

Item/Product Dashboard Bin Card Stock Card (Ledger) Stock Valuation Multiple store balance Stock movement Hourly, daily, monthly, yearly Expiring Reordering level monitor Item analysis

Customer/Supplier Dashboard Customer ledger Summery, detail Ageing Analysis Customer activity Hourly, daily, monthly, yearly

Security Dashboard Active users Operation log Operation History