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Sage ERP X3
Financial Accounting Series: Fundamentals
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Contents
Welcome and Introduction .................................................................... 1
Key Concepts ........................................................................................ 2
Overview of Transaction Flow .............................................................. 3
Organizational Setup.............................................................................. 5
What You Need ..................................................................................... 6
Account Plan ......................................................................................... 7
Account Classes .................................................................................. 10
What is Analytical Accounting ............................................................ 12
Dimension Types................................................................................. 13
Ledgers ............................................................................................... 15
Account Core Model ........................................................................... 19
Company & Site Information............................................................... 21
Fiscal Years & Periods ........................................................................ 29
Accounts & Dimensions ....................................................................... 33
Accounts ............................................................................................. 34
Collective Account Groups.................................................................. 42
Account Pyramids ............................................................................... 43
Dimension Values ............................................................................... 50
Default Dimensions ............................................................................. 52
Dimension Pyramids ........................................................................... 55
Entries ................................................................................................... 62
Posting to the General Ledger .............................................................. 63
Journal Entry Setup ............................................................................. 64
Journal Codes ...................................................................................... 68
Journal Entries ..................................................................................... 70
Reversing Entries ................................................................................ 74
Batch Entry ......................................................................................... 76
Allocations .......................................................................................... 78
Automatic Journals .............................................................................. 84
Financial Data Extraction .................................................................... 90
General Overview ............................................................................... 91
Financial Data Extraction .................................................................... 92
Sage North America Certified Student Course Curriculum - Version 3.0 Page i
Copyright © 2014 Sage, Inc. All Rights Reserved.
Financial Accounting Series - Fundamentals
Page ii Sage North America Certified Student Course Curriculum - Version 3.0
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Financial Accounting Series - Fundamentals
Lesson 1
Welcome and Introduction
Welcome to the Sage X3 ERP Financial Accounting Series - Fundamentals training
class. This course is divided into discussion of concepts and activities.
The information in this document is intended to provide you with information on setting
up your financials, which includes account plans, accounts, ledgers, and company and
site information.
This course is designed to provide you with knowledge of:
How to define company and site information, which includes defining the account
plan, chart of accounts, dimensions, and appropriate values.
How to enter transactions directly in Financials. This includes journal entries,
reversing entries, simulations, and allocation transactions.
How to complete the process for closing the period and year, which includes
recurring entries and reports.
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Financial Accounting Series - Fundamentals
Key Concepts
Before defining accounting information in Sage ERP X3, it is important you understand
how all the various accounting settings and parameters defined impact a company and
site created.
When defining information, you are using a combination of various functions on the
Setup and Common data blocks.
You should always review settings defined in functions such as Parameter values
(ADPVAL) in the Setup > General parameters block as these settings can impact
what information is defined and required in a specific function.
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Financial Accounting Series - Fundamentals
For the majority of transactions in Sage ERP X3, there is a direct and real-time flow to
the ledgers. This means that once a transaction is entered and posted, it creates a journal
entry immediately. This journal entry can be referred to as the accounting document
related to the transaction.
In order for this transaction flow to happen, there are a few system tasks that must be
performed and as highlighted in the previous topic, certain transaction setup elements
must be in place:
(always on)
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Financial Accounting Series - Fundamentals
The Journal status monitor can be started by clicking Run now in the Right panel.
- If there are unprocessed transactions, you will be able to view the number of
Journals on hold to identify the number of transactions waiting to be processed.
The Journal status monitor provides a helpful utility for managing and maintaining
period end and financial reconciliation tasks.
- This allows for the stopping and starting of all transaction flow through to the
ledgers.
- In order for the system to operate as real-time however, the Journal Status
Monitor should always be running.
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Financial Accounting Series - Fundamentals
Lesson 2
Organizational Setup
In the following topics, you will learn how to define information required to create the
chart of accounts as well as gain an understanding of the information defined for
companies and sites.
The topics in this lesson include:
What You Need
Account Plan
Account Classes
What is Analytical Accounting
Dimension Types
Ledgers
Account Core Model
Company & Site Information
Fiscal Years & Periods
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Financial Accounting Series - Fundamentals
Before you are able to enter transactions in a company, there are several settings you
must define. This includes the chart of accounts, ledgers, dimensions (if used), and
account core model. Before beginning the setup process, you should gather the
following information:
The chart of accounts, including the account structure and dimensions.
Account numbers and dimension values
The number and types of ledgers for which you will be tracking values
Company and site information, including addresses, contact information, and chart
of accounts used.
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Financial Accounting Series - Fundamentals
Account Plan
Use Charts of accounts (GESCOA) in the Setup > Organizational structure block to
define an account plan. The account plan defines the following:
The chart of accounts structure.
Controls tax postings
Details of specific accounts (e.g. Retained Earnings)
Links to account classes
Linked accounts between sites
Allows generation of Reporting Codes and inter plan mapping
Enables generation of default dimension types by account root
Note: You must define an account plan before you can define information such as an
actual account, account class, and dimension. You must return to this function to define
any additional setup information once the other setup functions are completed.
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Financial Accounting Series - Fundamentals
Format
Select the Fixed length check box to specify all accounts created for this account
plan must be a specific length.
- If you create an account less than the specified length, the system auto-fills the
remainder with zeros (0).
- For example, if you specify a fixed length of 10 and you enter 3005 as the
account number, the program automatically adjusts it to 3005000000.
- If the check box is cleared, you can still specify a maximum length; however,
the account number created can be less than the maximum length.
- For example, if you specify a field length of 10, but it is not fixed, you can enter
either 3005, 30005, 300006 as an account number.
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Financial Accounting Series - Fundamentals
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Financial Accounting Series - Fundamentals
Account Classes
Account classes are assigned to accounts and account groups and determine if the
account is a Balance Sheet or Profit & Loss account, the default sign, and the analytic
sense.
Account classes represent the different sections of financial statements such as
Assets and Liabilities.
You can define account classes that represent the same section of a financial
statement such as Current Liabilities and Long Term Liabilities.
Use Account classes (GESCLS) in the Setup > Financials block to create account
classes.
Note: A default set of account class codes are automatically created when activating a
legislation; however, new ones can be added and existing ones can be modified.
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Analytical views of the data are optional and are driven by ledger settings.
In the figure above, Market Area, Sales Region, and Product Category represent
individual dimensions.
- Based on settings and requirements defined for dimensions, you would be able
to obtain information for sales postings specific to any one of the dimensions.
You can make the selection of a dimension value required or optional and not all
postings have to require an entry for every dimension.
- For example, you may require a selection is made for the Sales Region
dimension when entering customer invoices; however, when entering a supplier
invoice no dimension values are required.
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Financial Accounting Series - Fundamentals
Dimension Types
Use Dimension types (GESDIE) in the Setup > Organizational structure block to define
dimension type codes.
Dimensions are typically used to represent such items as departments, locations,
regions, and product lines.
A maximum of 20 dimension type can be defined.
These dimensions are shared across all companies defined within a Folder.
The values for a dimension type code are defined using the Dimensions function,
and a value can be an amount or quantity.
The entry made at the Dim view format field in the Management section defines the
format of the values defined for the dimension type code created. You can enter a
maximum length of 15.
- You must enter the dimension length followed by either # (numeric only), A
(alpha characters only), or c (alphanumeric).
- For example, 10A stands for a maximum length of 10 and you can only enter
alpha characters as the account number (e.g. ARACCT).
- It is important to note, some reports may not display the entire 15 characters if
using the maximum length due to space limitation, font, and/or printer used.
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Financial Accounting Series - Fundamentals
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Financial Accounting Series - Fundamentals
Ledgers
A ledger is the principal book for recording transactions. You can have the same or
separate ledgers for tracking transactions and balances associated with the general
ledger or analytical ledger.
You can define an unlimited number of ledgers; however, you can only associate a
maximum of 10 ledgers with an account core model.
- An account core model is associated with a specific company and determines the
ledgers, chart of accounts, and dimensions available.
You can post a single entry to multiple ledgers. For example, if you have a general
ledger and an analytical ledger, you can post to actual accounts in the general ledger
and dimension values in the analytical ledger.
The benefits of using multiple ledgers is to allow for greater analytical reporting,
conforming to government reporting requirements, tracking different ledgers at the
same time to reduce redundant data entry, etc.
Use Ledgers (GESLED) in the Setup > Organizational structure block to define
ledgers.
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Ledgers (continued)
Type of accounting
In the Type of accounting section, you determine the type of ledger you are creating.
You can define a single ledger that is used to track all types shown, or you can
create individual ledgers for each.
The options available are listed in the table below.
General This represents your legal ledger.
Purchases, sales, and payments post against this
ledger.
Financial statements such as Balance Sheets and
Income Statements are generated based on this
ledger type.
Accounts must balance in the General ledger.
You must define at least one ledger as General.
Analytical You must have a ledger defined as Analytical to
post information based on dimensions.
A General ledger can also be defined as an
Analytical ledger.
Budget You must have at least one Budget ledger defined
to track budget information for an account.
This option is only available if Analytical is also
selected.
You can have both an analytical ledger used for
tracking postings by dimension and a separate
analytical ledger for budgets.
Operating Budgets This option is only available if Analytical is also
selected and if Operating Budgets is activated.
If selected, you must have a dimension of Entity
and Envelope associated with it.
You can have both an analytical ledger used for
tracking postings by dimension and a separate
analytical ledger for operating budgets.
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Financial Accounting Series - Fundamentals
Ledgers (continued)
Commitments Must be selected in order to benefit from the
automatic creation of pre-commitments and
commitments generated by the Purchase module.
This option is only available if Analytical is also
selected.
If this check box is not selected for the main
analytical ledger defined in the account core
model, than only the manual entry of
commitments is possible.
IAS Management This ledger is used for fixed assets and is only
available if utilizing International Accounting
Standards.
This option is only available if Analytical is also
selected and if the Fixed Assets module is
activated.
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Ledgers (continued)
Matching consists of pairing account postings in order to facilitate the analysis of an
account balance on a given date. For example, matching the posting for an invoice
with the posting for the payment.
- Select the Matching check box to ensure postings are matched either manually
or automatically based on the journal for the entry.
- This check box must be selected for the main general ledger.
Select the At least one dimension check box to make it mandatory that a user select
at least one dimension code when posting an entry to the Analytical ledger.
- The check box is only available if Analytical is selected as the type of ledger and
a minimum of 1 dimension type code is defined in the CoA and dimension types
section.
Select the Storage of empty allocations check box to allow for the system to track a
blank dimension value; otherwise, if selected, an entry must be made.
- The check box is only available if Analytical is selected as the type of ledger and
a minimum of 1 dimension type code is defined in the CoA and dimension types
section, and the At least one dimension check box is not selected.
Fiscal Year End
In the Fiscal Year End section, you determine how the carry-forward amount created
through the fiscal year-end process is generated.
During the fiscal year-end process, the system generates a Carry Forward Entry
journal transaction. The generation type selected determines if the carry-forward
amount creates an entry based on the site or company combination.
Select the C/fwd balance check box to generate a carry-forward entry as part of the
fiscal year-end process.
- This check box is automatically selected if Balance is selected in the
Management section, which ensures it is selected for the main General ledger.
- Based on how your Analytical ledger and dimension types are defined, you can
optionally choose to create a carry-forward entry for the Analytical ledger.
- If selected, a closing report is generated showing all of the closing entries and is
generated as part of the fiscal year-end process. Select the One journal per
account check box to generate this report separately for each individual account.
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Financial Accounting Series - Fundamentals
The program allows you to manage companies with identical or different legislations
within a single folder that may or may not have the same accounting organization. This
organization, called the Account Core Model, is a structure containing charts of
accounts.
Every legal company is associated with an account core model.
The account core model identifies the ledgers used, currency in which transactions
post to the ledger, and how the currency rate is determined and calculated when
posting in a different currency.
Use Account core models (GESGCM) in the Setup > Organizational structure block
to define the account core model.
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Financial Accounting Series - Fundamentals
The program is based on hierarchical structure with the highest level being the Folder.
A single folder can contain multiple companies and the company currency can differ
from the folder currency.
A single company can also have multiple sites, and the sites can represent different
locations, warehouses, etc.
Companies and sites can be grouped together for reporting purposes.
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Financial Accounting Series - Fundamentals
For each company, enter a company code, description, and short description. You
can enter a maximum of 5 characters for the company code.
Select the Legal company check box to indicate the company is legal according to
specific accounting guidelines. Only legal companies can have account postings and
balances.
- A non-legal company can be used for simulations and analytical groupings.
You can add an image to use as a logo on reports. The image files can .bmp, .jpg,
.jpeg, .wmf and .gif.
- You can either drag and drop the file into the Logo section or click Select file to
manually select the logo.
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The Legal company field determines the company the site is associated with.
The Financial site check box determines if the site is a financial site, allowing for
financial reporting and tracking.
- If the check box is selected, the accounting code defaults to the one associated
with the company selected on the General tab, and cannot be changed.
- If the check box is cleared, the site is only used to track stock movements (e.g.
warehouses) and not financial transactions.
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Financial Accounting Series - Fundamentals
The type of site selected can impact the type of transactions you can enter in a site.
For example, you cannot enter sales transactions in a site that does not have Sales
selected.
Select the DAS2 check box if 1099 invoices are entered for this site.
- Clear the check box if 1099 invoices are not tracked at this site; however, you
can enter a 1099 site at the DAS2 site field to extract any necessary line items to
the other site as needed for 1099 information.
At the Unavailable field, you can select an Unavailable schedule that defines what
days the site is closed for such events as holidays.
- This information is defined through the Unavailable periods function in the
Common data > BP tables block.
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Financial Accounting Series - Fundamentals
Select the Tax on salaries check box if the site is subject to wage tax.
The DAS2 Signer information represents the manager of the 1099 site.
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Financial Accounting Series - Fundamentals
The options on the Warehouse tab are not available if the Stock check box is not
selected on the Details tab.
In the Default Warehouses section, you can optionally assign default warehouses to
use when entering receipt and issue transactions.
- Warehouses are created using the Warehouse function in the Common data >
Product tables block.
Updating Account Plan with Linked Accounts
After defining sites for a company, you can define linked account information for a
specific account plan in the Charts of accounts function.
This is primarily used when entering inter-site transactions and can define such
accounts as the inter-site clearing account.
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Financial Accounting Series - Fundamentals
Select the Company group check box to indicate you are creating a company group.
If selected, you cannot select a site.
On the Grouping tab, the Company and Site sections are used to select company or
site you are assigning to the group.
- You cannot select both a company and a site for the same group.
On the Pyramids tab, you can view the results of the selections made and the
pyramid created.
You should create a group for each single company and then one for any company
groups you want to define.
Note: You can only group companies within the same Folder.
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Financial Accounting Series - Fundamentals
Once a company is created, you can define the fiscal years and periods. Information is
automatically defined based on the starting date entered when creating a company.
Fiscal Years
Use Fiscal years (GESFIY) in the Common data > G/L accounting tables block to
define fiscal years for each company/legal ledger combination. You must define fiscal
years for each fiscal year starting with the first fiscal year defined for the company up to
your current fiscal year.
You can enter a description and short description, as well as modify the end date for
each fiscal year added.
- Changing the end date automatically updates the start date for the next fiscal
year.
The start date for the first fiscal year displayed is based on the date entered when
starting the company.
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Financial Accounting Series - Fundamentals
Select Yes in the Y/N field to add a fiscal year to the company. You can modify the
ending date once added.
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Financial Accounting Series - Fundamentals
Fiscal periods are defined based on the company, ledger type, and fiscal year
selected.
The Details section is used to define the end dates for each period associated with
the fiscal year selected.
- By default 12 periods are created automatically; however, they can be changed.
- The period start date for the first period is based on the start date for the fiscal
year and cannot be changed.
- The period end date for the last period is based on the fiscal year end date and
cannot be changed.
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Financial Accounting Series - Fundamentals
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Financial Accounting Series - Fundamentals
Lesson 3
Accounts & Dimensions
In the following topics, you will learn how to define specific accounts, dimension
values, and account and dimension pyramids for reporting.
Accounts
Collective Account Groups
Account Pyramids
Dimension Values
Default Dimensions
Dimension Pyramids
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Financial Accounting Series - Fundamentals
Accounts
After defining the accounting plan and the account classes, you are ready to create
accounts. Accounts are defined using the Accounts function (GESGAC) under General
in the Common data > G/L accounting tables block.
Accounts created are associated with an account plan, which is selected at the Chart
field. The account plan is selected by clicking Plan in the Right panel.
The account number entered is based on the format defined for the account plan
selected.
- You can create an unlimited number of accounts for a single account plan.
- A warning displays if the account number entered does not match the format
defined.
- Additionally, a red underline displays in the field as soon as the entry differs
from the defined format.
If using multi legislation, you can optionally choose to select a currency at the
Currency field. Selecting a specific currency restricts the use of the account to that
currency only.
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Financial Accounting Series - Fundamentals
Accounts (continued)
Fields in the Accessibility section determine which users, companies, sites, and
groups can access, view, or select the account.
The Classification field is used to associate the account with a specific account
class.
Control Accounts
A control account requires the selection of a business partner for additional tracking
purposes and is normally associated with accounts receivable and accounts payable
accounts.
Business partners represent customers and suppliers.
When selecting an accounts receivable or accounts payable account as a default or
when entering a transaction, you can only select an account defined as a control
account.
To make an account a control account, you must select the Control check box.
Short Code
Use the Short code field to enter an additional reference to the account created. This
reference can be between 2 to 4 alphanumeric characters and is used as a keyboard
shortcut during data entry.
Short codes are specific to accounts and the same short cannot be used for multiple
accounts in the same account plan.
You must enter a short code if the Control account check box is selected.
You can use the short code when defining selection and search criteria in functions
and inquiries.
The short code entered must begin with a letter.
Default accounts
In the Default Accounts section, you can define default accounts used in another
account plan, requiring the user to enter information for that account whenever the
current account is selected.
You cannot create defaults for multiple accounts in the same account plan.
In instances where there is not a strict relationship between accounts in both ledgers,
you can define a wildcard string in the Screening field to permit for a range of
accounts to be specified in the subsequent ledger.
If the Default account field is left blank, you can select either Yes or No at the
Mandatory entry field. This indicates if posting to an affiliated ledger is mandatory
or not.
- Keep in mind, Analytical ledgers are not required to balance in the same manner
as Legal ledgers.
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Accounts (continued)
Management Tab
Use the Management tab to define information specific to recurring entries, taxes,
reporting codes, and consolidation.
In the Recurring Entries section, you can associate an accrual account with a
recurring account, which is typically an expense or revenue account.
- The automatic balance function of the recurring journals is used to automatically
balance a recurring journal account to the associated accrual account.
- If the accrual account selected is a control account, you must also select a
business partner at the BP field.
If you are using multiple legislations, you can determine if an exchange rate
variance for payments is generated during entry matching.
- In the Variance type section, you determine if the conversion variance calculated
is posted to the Balance Sheet, Profit and Loss (retained earnings account), or
not at all.
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Financial Accounting Series - Fundamentals
Accounts (continued)
Taxes
The Taxes section allows for the specification of a tax code to a GL account. Also
subsequent journal postings against this account will capture the tax code on the journal
entry line.
Under Tax management, you have the following options:
- Not Subjected: Indicates the account is not used for tax management. This
would be for accounts such as employee expense accounts or depreciation
accounts.
- Subjected: Indicates the account receives entries that must be considered to
determine the taxable base (taxable and non-taxable amounts). The sales and
purchase accounts must have this option selected.
- Tax Account: Indicates the account is a tax account and determines the amount
of tax collected.
- The remaining options are not used in North America.
If you select either Subjected or Tax Account, you must indicate the taxing rules
under Tax allocation.
In the Tax codes fields, select the tax codes associated with the account.
- You can select a maximum of three codes for a single account.
- These fields are only available if either Subjected or Tax Account is selected
under Tax management.
Consolidation
The Consolidation section is only available if you have the Consolidation (CSL) activity
code active.
If the Consolidation analysis check box is selected, the pre-consolidated balance
details the balance of the account by partner.
- When consolidated, it groups transactions based on the values entered at the
Account if debit and Account if credit fields. All accounts with the same
debit/credit value are grouped together into one balance.
- If the check box is cleared all debit and credit entries will manifest in the
account itself and the account will present themselves at its net balance.
The Flow management field allows for the specification of a flow code on an
account. Any journal postings against this account will capture the flow code on the
journal entry line. The options available include Not entered, Optional, and
Mandatory.
- If Optional or Mandatory is selected, you can select a flow code to use at the
Flow if debit and Flow if credit fields.
- These codes are defined through the Data (GESADI) function under
Miscellaneous tables in the Development > Data and parameters block.
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Financial Accounting Series - Fundamentals
Accounts (continued)
Miscellaneous Tab
Use the Miscellaneous tab to determine if the account is matchable, fixed assets are
tracked against the account, the default sign for entries and balances, and BP
authorization.
Select the Matchable check box to indicate that transactions relating to the same
source are matched. For example, this can be used to match entries posted for a
customer invoice to the invoice payment.
- You can have the system match automatically for you or manually match
transactions.
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Financial Accounting Series - Fundamentals
Accounts (continued)
If the Summary reporting check box is selected, a summary total is displayed by
journal and month for the account on reports.
- If the check box is cleared, all individual detail postings are detailed on reports.
- Regardless of the selection, detailed information is always stored for the
account.
The Subject to discount check box is only active on the Miscellaneous tab if:
- The folder is mono-legislation and the discount management mode is set to
Breakdown by VAT, account level at the folder level.
- The folder is multi-legislation and the discount management mode is set to
Breakdown by VAT, account level at the legislation level.
The Credit level update field determines if the posting to this account triggers the
update of the customer or supplier record.
- This field is only available if the Control check box is selected.
The Default sign selected defines the default entry position when entering a manual
journal entry, either the Debit or Credit column. If unspecified, the cursor defaults to
the column possible to balance the entry.
The Balance sign selected defines the normal sign on the account balance. At the
end of the fiscal year, a list of accounts from which the sign of the balance is
different from the default sign is generated.
- You can also generate a list of customer with credit balances and suppliers with
debit balances based on this setting.
In the BP authorization section determines if a control account can receive entries
from one or more of the available business partner types.
Analytical Tab
Use the Analytical tab to determine if budgets are tracked for this account, as well as
default values.
Select the Budget tracking check box to track budget information for this account.
Budgets can only be entered for an analytical ledger, which is discussed in a later
topic.
Note: Dimension defaults are discussed in a later topic.
Bank ID Number Tab
Use the Bank ID number tab to define bank account information by country. You can
capture the bank ID number defined for the account when entering payments in the
Payment/receipt entry (GESPAY) function.
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Accounts (continued)
Updating the Account Plan
After creating accounts, you can return to the account plan and define information on
the Miscellaneous tab. This tab is used to define specific accounts to post to for such
miscellaneous accounts as the Suspense account.
Copying From an Existing Account
You can copy settings from one account to a new account, making the setup process
easier for accounts that are similar, such as multiple accounts receivable accounts or
expense accounts.
To copy information from an existing account to a new account, simply select the
account you want to copy from and enter a new account number at the Account
field.
When you Tab out of the field, it puts you in a new status; however, all entries and
selections made from the original account are defined for the new account.
When you click Create, you are prompted to continue with the copy process.
Copying Accounts from an Account Plan
You can copy accounts from one account plan to another. This is done by selecting
Copy chart of accounts under Functions in the Right panel.
You can copy from an account plan in either the current or another X3 Folder by
selecting the correct folders in the From folder and To the folder fields.
- Both fields automatically default to the current folder.
- Additionally, the account plan to copy from defaults to the current plan selected
and cannot be changed.
At the Copy of plan and To the plan fields, select the account plans to copy from
and to.
- If you are copying from an existing account plan in the same X3 folder, verify
the plan you want to copy from is selected prior to accessing this function.
- After selecting the plans, you can optionally enter a range of accounts to copy at
the Account ranges fields.
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Accounts (continued)
You can copy accounts from different account plans into a single account plan. For
example, you can copy accounts defined for both account plans A and B into
account plan C.
- This is done by first copy accounts from account plan A to account plan C and
then from account plan B to account plan C.
The system will not overwrite or modify any existing accounts during the copy
process. For example, if account 10005 is in both account plans, it will not be
overwritten or modified to match the account plan you are copying from.
When copying accounts, you should verify that the format for the account number
will accommodate accounts defined for the account plan you are copying from.
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Use Control groups (GESGSC) under General in the Common data > G/L accounting
tables block to group control accounts together under a single code for use when
defining selection criteria and in inquiry functions and reports.
For example, if you have multiple accounts receivable accounts, you can create a
control group to combine them together making it easier to view all information in
an inquiry function.
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Account Pyramids
Account pyramids define a hierarchy of accounts that are used for reporting purposes
and created to determine how much detail is provided based on the level used in the
defined pyramid.
Note: Group 2, in the pyramid below, does not have information defined in this
example.
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Account groups created are associated with a pyramid, which also determines the
chart of accounts used.
- The pyramid is selected by clicking Pyramids in the Right panel.
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Each level of the pyramid generated is given a number, with 10 being the highest,
20 next, etc.
Each account is assigned a level based on its length (number of characters). For
example, level 20 starts with accounts that start with 1, level 30 continues with
accounts that start with 11, 12, etc.
Verification
You can run a verification that checks to ensure all relevant values are in the pyramid
and that you have not mixed account specific groups with sub-groups, etc.
To run a verification, select Verification from the Functions block in the Right panel
of the Account pyramid function.
When the verification is run, a report is generated and documents any discrepancies
that are found.
You can run the verification as many times as needed to ensure the pyramid will
function correctly when used for inquiries or reports.
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Dimension Values
Use Analytical dimensions (GESCEE) under Analytical in the Common data > G/L
accounting tables block to define values for all dimension types defined in the
Dimension types function. You can define an unlimited number of dimension values for
each dimension type.
The value entered at the Dimension field is based on the format defined for the
dimension type selected. You can create an unlimited number of values for a single
dimension type.
The Accessibility section determines which users, companies, sites, and groups can
access, view, or select the dimension.
Select the Budget tracking check box in the Management section to enter and track
budget information for the selected value.
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Default Dimensions
Once dimension types are defined, there are several functions in which you can define
default types associated with an entity, such as an account, customer, etc.
Default Dimension Types
Use Default dimension types (GESCDI) in the Setup > Organizational structure block to
define which dimension types are associated with specific entities in the system, such as
a product, customer, supplier, sales rep, user, etc.
For example, in the figure below, the CCT, PRJ, PRO, and MAR dimension types
are associated with the Customer entity.
- When creating a customer, you can enter values only for those dimension types
associated with the entity.
- No other dimension types are shown and a user cannot add an additional
dimension type.
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For a specific account root, you can define a dimension type and optionally a default
dimension value.
- The Account root field represents the first character in an account number. In the
example shown above, any account starting with “4” will have the dimension
types of CCT, EMP, MAR, PRO, etc. associated with it.
- Dimension codes must already have been defined in the Analytical dimension
function to assign a value at the Default dimension field.
You can also assign dimension types and dimension codes at the account level in the
Accounts function.
If you have already defined accounts, click the Run icon to automatically update
existing accounts with any information defined on this tab.
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Dimension Pyramids
Dimension pyramids define a hierarchy of dimensions that are used for reporting
purposes and created to determine how much detail is provided based on the level used
in the defined pyramid.
For example, you can create a dimension pyramid to report information on various
dimension types (e.g. Bike). You can receive information either by individual
dimension code or by each individual dimension type.
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For each pyramid, you must define an ID and associate it with a dimension type.
- You can assign the same dimension type to multiple pyramids, giving you
unlimited flexibility in how information is reported.
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At the Group field, enter a group ID to identify the grouping of sub-groups and/or
dimension codes.
- The description displays in inquiries and on reports to identify the group.
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Each level of the pyramid generated is given a number, with 10 being the highest,
20 next, etc.
Each account is assigned a level based on its length (number of characters). For
example, level 20 starts with accounts that start with 1, level 30 continues with
accounts that start with 11, 12, etc.
Select the Use wild-cards check to allow for the automatic entry of new accounts
into the group based on the wildcard string defined (e.g. 10* would auto-include any
accounts which start with 10).
The Homogenous levels check box should be selected if you wish for all branches in
the pyramid to have the same number of levels.
Verification
You can run a verification option that checks to ensure all relevant values are in the
pyramid and you have not mixed dimension code specific groups with sub-groups, etc.
To run a verification, select Verification under Functions in the Right panel.
When the verification is run, a report is generated and documents any discrepancies
that are found.
You can run the verification as many times as needed to ensure the pyramid will
function correctly when used for inquiries or reports.
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Lesson 4
Entries
In the following topics, you will learn how enter such transactions as journal entries,
reversing entries, simulations, commitments, allocations, and gain a basic understanding
of Automatic Journals.
The topics in this lesson include:
Posting to the General Ledger
Journal Entry Setup
Journal Codes
Journal Entries
Reversing Entries
Batch Entry
Final Validation
Allocations
Automatic Journals
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Prior to reviewing the functions available for manually entering journal transactions, it
is important to understand how ledgers are updated, including the general ledger.
The Production, Fixed Assets, and Stock journals post via a user controlled
interaction, which can be run by a batch process.
The Sales and Purchase journals as well as the Manual Journals post to the General
Ledger in real time.
- For example, when entering an invoice it updates the appropriate ledger(s) when
you click Post.
With the exception of manually entering a journal entry, all other functions post
using automatic journals.
- All of these functions can be monitored in the Accounting tasks monitor.
Note: An overview of automatic journals is discussed later in this course.
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When entering journal transactions, there are several elements that come together to
define the transaction. This includes:
Document Type (Entry type): Defines the various types of journal that are used in
accounting.
Journal Entry Transaction (Transaction): Defines the layout of the data entry screen
and fields displayed or hidden.
Journal Code (Journal): Defines the source journal for journal entries.
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Journal Codes
Every entry posted originates from a specific journal code. Use Journal codes
(GESIOU) under General in the Common data > G/L accounting tables block to define
and modify the codes for identifying the source journal for journal entries.
A default set of journal codes is created automatically and are associated with the
appropriate automatic journals defined when creating a new company.
If Treasury is selected at the Type field, you must select a treasury (bank) account in
the Management section. This account is used as the offset for any transaction
posting to this journal code to balance the transaction, if needed.
Type
The Type field identifies how the journal is used. The options available for type include
Sales, Purchasing, Treasury (Cash), Miscellaneous Operations, and Balance Forward.
Six journal types have been allocated to the miscellaneous operations.
- Misc. Operations 1, Misc. Operations 2, and Misc. Operations 3 are reserved for
the general accounting.
- Misc. Operations 4, Misc. Operations 5, and Misc. Operations 6 are for
dimension accounting.
- The titles of the miscellaneous operation types can be changed through the Local
blocks function in the Setup > General parameters block.
Once entries are posted to a specific journal code, you cannot modify the type.
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In the Frequent Account List section, select a list of frequent accounts. This does not
limit the journal code these accounts but provides an easy to use lookup feature
whenever the journal code is used for a transaction.
In the Restricted accounts section, you can restrict the journal code from being used
with the accounts selected.
- You must manually enter account numbers.
- You can also use a wildcard (*) or ? to represent specific character values.
- For example, 6* would restrict this journal code from being used with any
accounting starting with “6”.
Defining information in this function is optional.
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Journal Entries
Use Journal entry (GESGAS) in the Financials > Journals block to enter journal entries
consisting of details closely related to a single purpose. Examples include adjusting
entries and depreciation.
If specific transaction entries were defined for this function, you are prompted for
the transaction prior to accessing the function.
When you first access Journal entry, the last entry you viewed or entered in this
function displays.
- You can view all entries made regardless of the function used in the left
navigation pane.
- This includes transactions posted from Sales, Purchasing, etc.
Header Information
For each entry, you must enter header information which details such information as the
site, entry type, journal, date, and currency information.
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The information entered is based on the document type selected. For example, this
can determine if a BP is selected, whether columns display for dimension types, etc.
The cursor defaults to the Debit or Credit column based on the default sense
assigned to the selected account.
- If the default account sense is not defined, the cursor defaults to the column that
is used to balance the entry.
- You can also right-click in the Debit or Credit column to access options for
balancing the entry. This includes Balance and Account Balance.
- An additional option of Forced amount is available when using different
currencies.
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Reversing Entries
You can also use the Journal entry function to enter accruals that are reversed as of a
date you specify. This is referred to as a reversing entry.
You can define an entry as reversing by selecting Yes at the Reversal field. Once
selected, you can define a reversal date and description.
Only the original entry posts when created based on the status.
The reversing entry is posted using either Reversal under Zooms in the Right panel
or by selecting the Reversals (CPTEXT) function.
Reversing
There are two ways to create the actual reversing journal entry.
You can select the entry in the Journal entry function and select Reversal under
Zooms in the Right panel.
- Select the Debit <=> Credit option to post the reversing entry as reversed debits
and credits or select Amount <=> Negative Amount to post the reversing entry
as a negative debit and credit.
- When posting a single reversing entry, you can modify the reversing date at the
Reversal date field. Additionally, you can change the generated description.
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- When posting reversing entries for multiple reversing journal entries, you can
define a selection criteria. For example, you can post the reversing entries for a
specific company, site, and journal.
Once the reversing entry is posted, the Reversing field on the original reversing
journal entry created is changed to Reversed.
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Batch Entry
Use Batch entry (GESLOT) in the Financials > Journals block to enter transactions in a
batch mode. This allows you to enter multiple entries with different journals in the same
function prior to validating and creating.
In the Header section, you can define a default site, journal, and description.
- If transaction entries have been defined, you must select the entry transaction to
use for creating the journal entries. This is the same as selecting the transaction
when accessing the Journal entry function.
In the Input section, enter the individual entries.
- The document field is set to Yes for the first line or any entry and No for each
associated line.
- In the example show, lines 1 and 2 are grouped together as on entry and lines 3
and 4 are grouped together as a second entry.
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You can post the entries as Actual, Active Simulation, or Inactive Simulation, as
well as a Final or Temporary journal entry.
You can also select to view the log file to detail the process and entries generated
and to automatically delete the log file once viewed.
The Batch server must be Active and the Accounting functions status Active.
- From the Usage > Batch server block, select Accounting functions and verify the
Task Status is Active for ACCENTRY.
- To activate the batch server, select the Server activation function from the Usage
> Batch server block and select Yes.
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Allocations
For example, an invoice is received from the telephone company entered into
Accounts Payable.
- The accounts payable clerk posts the invoice to the telephone expense account.
- Because the expense is allocated out over several different departments
(dimension), it is necessary to take the amount and allocate a portion to the
different department values.
When posting entries, it is important to keep in mind that you can allocate the
amount posted to an account to a specific analytical dimension value; however, not
to multiple dimensions values for the same type.
Defining an analytic allocation makes the above example easier to achieve.
There are several ways to allocate an amount either when entering an individual
transaction using a pre-defined distribution or by using the Dimensional allocations
function.
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Allocations (continued)
Analytic Allocation
Use Analytical allocation (GESDSP) under Analytical in the Common data > G/L
accounting tables block to define how a specific amount is distributed into several
analytical dimensions. The allocations defined are used at the Distribution field when
entering an individual line item on a transaction.
In the Dimension Types section, select the dimension types to include. You can
distribute to more than one dimension type.
In the Dimensions section, enter the conversion factor and the appropriate
dimension value. A separate column displays for each dimension type selected.
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Allocations (continued)
The conversion factor entered represents the coefficient used to calculate the amount
to assign to the dimension(s) selected.
- If you select multiple dimension types, the conversion factor entered applies to
all values selected on the row.
- You cannot enter a different conversion factor for each different dimension
type/dimension combination.
- The total of the coefficients entered cannot exceed 100%.
- The system will calculate the relative weighting for the different lines with
respect to the account posting amount.
If the allocation you are defining is only valid for a specific period of time, you can
enter a starting and ending date at the Valid from and Valid to fields.
- You are not required to enter both a valid from and valid to date.
- For example, you can enter only a valid from date to ensure the allocation is not
used until on or after that date.
Using Analytic Allocations During Data Entry
When entering a line item for a transaction, you can distribute the value entered to a
specific dimension value. However, if you want that amount distributed to several
dimension values, you must either enter multiple line items posting to the same account
with different amounts for each dimension value, or you can use analytical allocation.
To use an analytical allocation, select the allocation defined at the Distribution field
for a specific line item.
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Allocations (continued)
Once the transaction is posted an in a final status, click the Actions icon on the
appropriate line and select Analytical account inquiry to view the allocation.
- If you select the Account inquiry option from the Action icon, click the
appropriate row in the inquiry window and select Analytical to view the
analytical breakdown.
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Allocations (continued)
Later Distributions
If at the time you are entering a transaction, you are not sure of the dimensional
allocation, you can choose to allocate the account amount to the appropriate
dimensional value(s) using Dimensional allocations.
Prior to using this function, you must first define allocation information in the Later
distributions (GESDAD) function under Accounting forms in the Setup > Financials
block.
This function allows you to define the dimensions affected, account balance to use,
and percentages.
In the Setup section, define information for the allocation including the dimension
type, dimension value, account to distribute, percentage, and source information.
The type selected at the Type field controls the calculation method for the amount
that is posted to the destination dimension(s). This amount can be:
- Calculated based on the quantity of allocation non-financial units entered into
the selected receiving dimension(s).
- Calculated based on the balance in amount or on the quantities consumed at a
given date: either the selected destination dimension(s) or allocation account.
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Allocations (continued)
Creating Allocations using Later Distributions
Use Dimensional allocations (CPTDSPANA) in the Financials > Current processings
block to allocate an amount from an account to the appropriate dimension values based
on settings defined in Later distributions.
You can select either a company or group or specific companies to post the selected
allocation for.
In the Criteria section, select the later distribution at the Structure field.
In the Generation section, you can select the allocation period and calculation period
to use based on the setup of the distribution selected, as well as determine if the
entries created are actual, simulated, temporary, or final.
- If the entries created are simulated and/or temporary, use the same methods as
discussed previously regarding temporary entries and simulated entries.
You must also define the type of entry and journal to use when creating the entries.
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Automatic Journals
All activity that generates a profit or loss in a company needs to post in accounting. The
connection between these is the accounting interface.
Note: This topic is intended to provide a brief overview of automatic journals.
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The program will search the automatic journal associated with the original
document and applies the parameterization set to create the journal entry.
You can define a group of automatic journals in order to:
- Create different entries for a given automatic journal code.
- Have different automatic journals according to each legislation.
- Generate automatic matching for entries (only usable in payment automatic
journals)
The program will search the automatic journal associated with the original
document and apply the parameterization set to create the journal entry.
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The Type field identifies what you are creating the accounting code for, as well as
the code and description.
In the Details section, define the accounts based on the type selected. You can
define specific accounts, use wildcards to generate the account from multiple codes,
or leave blank.
- If you leave an account blank, it is assumed you are setting up the automatic
journal to either include an account or to look to another source.
You can define an unlimited number of accounting codes.
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You define information such as the module, grouping, formulas for generating the
description, if negative entries are allowed, and any special linking to additional
tables.
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Lesson 5
Financial Data Extraction
In the following topics, you will learn the purpose of financial data extraction and
understand how to use the tools available to create any financial report.
The topics in this lesson include:
General Overview
Financial Data Extraction
Financial Extraction Calculation
Financial Extraction Inquiry
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General Overview
The Financial data extraction tool allows you to extract data from the general ledger,
analytical dimensions, and budgets.
The parameters you define are based on fixed data (e.g. account characters,
dimensions, etc.) and variables (e.g. an amount based on the result of another field)
Execution of the data extraction is in a single mode or for a group of reporting
codes.
There are standard reports (USBS and USPL); however, you can build your own
report and link it to a reporting code or group.
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Use Financial data extraction (GESTXS) under Accounting forms in the Setup >
Financials block to define the report format as well as formulas for extracting amounts
and quantities.
For each financial data extraction definition, you must enter a code and group ID.
- You can create a new group by entering a new group ID or select one already
created.
- Remember, you can run the financial data extraction for either a single
extraction code or a group.
In the Ledgers section, select the default general and analytical ledgers to use.
- These are used when defining information to filter the data available.
Definition Tab
Use the Definition tab to define in the lines what you want to see across the columns of
the report created, fields to drill-down on, version management, and a link to any
special Office documents.
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Each line must have a title entered at the Title field. You can enter a maximum of 50
characters as the title.
For each line, identify under each column the data you want to trigger. You can use
a formula with the following structure:
- Up to 250 characters
- One formula can be the concatenation of several expressions, separate with
spaces
- If one formula has more than one expressions, the calculated amounts are the
sum of each expression
- If a line is left completely blank, the title still displays.
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Use Calculation (TXSGRP) under Financial data extraction in the Financials >
Reporting block to perform the data extraction and calculations necessary and create the
table used to view information in the Inquiry function.
You can select to run the calculation for all extraction codes defined for a group or a
range at the Start and End fields.
You can either select to automatically generate the version for the extracted data by
selecting the Automatic version check box or manually enter a version at the New
version field.
- You can have an unlimited number of versions created.
- Once a version is created, you can extract and recalculate the data for that
version by selecting a specific version at the Version field in the List section.
- When recalculating for an existing version, you can choose to recalculate using
the same parameters and values or select new ones.
The number entered at the Period shift field is to aid in the entry of preloaded dates
in the Start and End fields in the Parameter Definition section.
The List section lists the extraction codes selected. For each code, you must define
parameters and variable values.
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Use Inquiry (GESTXW) under Financial data extraction in the Financials > Reporting
block to view the results of the calculation performed for an extraction code and
version.
The extraction codes and version created can be selected at the Extraction code and
Version fields or from the Financial data extraction option in the Left List.
You can modify the values displayed within each column on the Values tab.
- If changed, the values display in red to indicate a change was made.
- You can save the changes for the extraction code and version selected by
clicking Save.
- If you selected to track detail, you can click the Actions icon in a field and select
Detail to view the details that make up the value displayed.
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When defining the parameters, select the appropriate extraction code and version to
view the appropriate report.
You can also access the Financial extraction inquiry report in the Financial
accounting function under Financials in the Printouts> Prints/group block.
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Financial Accounting Series - Fundamentals
Lesson 6
Intercompany Transactions
In the following topics, you will learn how to setup information for intercompany
transactions as well as how to enter an intercompany journal entry.
The topics in this lesson include:
Overview of Intercompany Transactions
Setting Up Intercompany Transactions
Intercompany Journal Entries
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This allows you to record a financial transaction when a parent company generates
for invoices for expenses or revenue that belong to one or more subsidiaries.
The types of transactions used and examples include:
- Services and Expense: Including billing from a profit center or allocations from
a cost center.
- Dividend payments: Parent company may need cash from subsidiaries to pay
dividends or their own expenses.
- Loans: Centralized at the parent company level where subsidiaries may barrow
from the parent where interest may or may not be charged.
- Reimbursements: Where parent company may arrange and pay for external
services for a subsidiary.
- Inventory Transfers: Could be down-stream sales from parent to subsidiary or
up-stream from subsidiary to parent or lateral subsidiary to subsidiary.
Features of Intercompany Transactions
Some of the features of intercompany transactions include:
Ability to designate a financial site belonging to a different company on both a
supplier and customer invoice.
Automatic generation of journal entries in the source (parent company) and the
target (subsidiary company) using the offsetting due to/due from account set up in
each company.
Intercompany transactions is also possible between legislations.
Traceability from intercompany invoice to all journal entries created.
Can modify the transaction of the intercompany journal in your financials.
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There are several setup steps that must be completed prior to entering intercompany
transactions. This includes activating intercompany transactions, allowing for
intercompany invoice creation, and defining intercompany account mapping.
In order to enter intercompany transactions, you must activate the INTCO activity
code using the Activity codes function under Development setup in the
Development > Data and parameters block.
To enter either a customer or supplier intercompany invoice, you must select Yes for
the INTCPYINV parameter value for the TRS chapter and INV group. This is done
through the Parameter values function in the Setup > General parameters block.
Intercompany Account Mapping
User Intercompany account mapping under General in the Common data > GL
accounting tables block to define the intercompany relationship between companies.
The information defined is used as the basis for the creation of intercompany journal
entries.
At the Source company field, select the company used to originate the transaction
and at the Target company field select the company used to post transactions from
the source company.
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Use Intercompany Journal entry in the Financials > Journals block to enter and post an
intercompany transaction. For example, you may need to reallocate costs from a parent
company’s expense account to the subsidiary company’s expense account.
The site selected in the Header section is the parent (Source) company.
At the Entry type field, select the document type for intercompany transactions. The
sequence counter associated with this document type will automatically generate the
entry number when the entry is created.
- If using multi-legislation and to avoid any type of legislation errors, make sure
the document type and journal code do not have a specific legislation selected.
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Lesson 7
Closing Procedures & Reports
This topic provides information on the functions associated with closing a period and
year in Financials. This includes accruals, credits to review, invoices to be issued,
recurring entries, balance transfers, and closing the period and year. In addition, an
overview of the reports and inquiry functions available are discussed.
The topics in this lesson include:
Final Validation
Simulations
Commitments
Analytical Modifications
Matching
Recurring Journals
Calculated Journals
Reports & Inquiries
Closing Periods
Closing Fiscal Years
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Final Validation
Use Final validation (CPTVAL) in the Financials > Current processings block to change
the status or journal entries from Temporary to Final. This includes entries made
manually in the Journal entry function as well as those posted from other modules.
The entries validated are based on criteria you define in the Criteria section. For
example, you can select to only finalize entries based on a specific company and
site, as well as a specific journal type.
To view a log file of the results generated based on this function, verify that the Log
file check box is selected. This is important to view any warnings or errors
generated by this function. Additionally, the log file provides a list of entries that
have been finalized.
After defining the criteria, click OK to begin the process.
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Simulations
Simulated entries allow you to enter a transaction that does not post to the general
ledger or affect balances, but can be included on inquiries and reports to see how
transactions may impact balances, reports, etc.
Simulated entries are created through the Journal entry function, by selecting Active
Simulation as the category.
- You must select a document type that is set up to allow for simulated entries.
- Additionally, you must enter a number to track the simulation at the Number
field.
- You cannot enter a status for a simulation entry.
Simulation Activation
If a simulation entered has a category of Inactive Simulation, you can either manually
make it active by selecting Active Simulation as the category on an entry-by-entry basis
or you can activate a batch of inactive simulations using the Activation (CPTACTSIM)
function under Simulations in the Financials > Current processings block.
Simulation entries are activated based on selection criteria you define.
Simulation Deactivation
If a simulation entered has a category of Active Simulation, you can either manually
make it inactive by selecting Inactive Simulation as the category on an entry-by-entry
basis or you can inactivate a batch of active simulations using the Deactivation
(CPTDESSIM) function under Simulations in the Financials > Current processings
block.
Simulation entries are deactivated based on selection criteria you define.
Simulation Cancellation
The Cancellation (CPTANUSIM) function under Simulations in the Financials >
Current processings block is used to delete simulation journal entries regardless if they
are active or inactive. Once deleted, you can no longer make them active or inactive.
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Simulations (continued)
Posting Simulations
If you decide after creating a simulation journal entry, that you now want it to be
temporary or final, you can do so by changing the category to Actual on an entry-by-
entry basis or you can make a batch of the actual journal entries using the Post
(CPTVALSIM) function under Simulations in the Financials > Current processings
block.
Simulation entries are made into actual journal entries based on selection criteria
you define.
In the Generation section, you can select to generate them as Temporary or Final, as
well as assign them to a specific document type and journal.
- Temporary journal entries generated are made final using the same process as
discussed previously for a standard journal entry.
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Commitments
Commitments allow you to take into account future commitments that may impact your
financials. Commitments are made automatically when entering such items as a
purchase order; however, you can also manually enter commitments.
You can view commitments and pre-commitments in general balance and analytical
balance inquiry functions.
These commitments are viewed and defined through the Commitments (GESCMM)
function in the Financials > Journals block.
The commitment number is assigned based on parameters; however, you can enter a
description.
The Type section determines the type of commitment you are entering and whether
it is an expense or revenue.
In the Input section, enter the details for the commitment, including the site, date,
account, amount, and dimension information.
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Commitments (continued)
You can view and modify commitments generated from purchase orders. The
description details the purchase order the commitment is from.
Pre-commitments are generated when requests are made and may or may not be
approved.
Commitments are normally made when the actual purchase is made.
You can delete or cancel generated commitments and pre-commitments.
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Analytical Modifications
The entries displayed for modification are based on the criteria defined. For
example, you can select to only modify entries entered for a specific company, site,
document type, journal, and dimension.
After clicking OK, the list of entries meeting the criteria are displayed and you can
make the appropriate modifications to the dimension values.
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Matching
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Recurring Journals
Recurring journal entries can eliminate the date entry time for journal entries posted
repetitively on a set cycle.
Recurring Entries
Use Recurring entries (GESGAF) under Accounting forms in the Setup > Financials
block to define the setup of the recurring entry. This includes the template journal,
start/end date, type, and generation information.
The type selected deters if the recurring journal accounts/amounts are fixed or
variable.
- If Variable is selected, you must also define an allocation.
In the Characteristics section, you can define how often the recurring entry should
post. This includes a specific number of days, weekly, 10-day period, 2-week
period, or monthly.
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Calculated Journals
A calculated journal entry is the same as recurring journals. The generation of these
journal entries is based on a template journal and the date and amount of each entry
journal is different on each generation.
The main difference between a calculated journal and a recurring journal is that you
can define a formula that will use amounts from the balance for one account or a
root of accounts and there is no periodicity associated with the calculated journal.
For example, a warranty provision based on 5% of sales.
Calculated Journal Generation
Use Calculated journals (GESCLC) under Accounting forms in the Setup > Financials
block to define the information necessary to generate the journal.
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There are several reports and inquiries available that allow you to review information
posted to general ledger.
Inquiries
You can access inquiry functions from the Financials > Inquiries block. Additionally,
inquiry functions can be launched by right-clicking on a transaction.
Account balances – Used to view the general and auxiliary balances for an account
based on a company, site, ledger, and date range entered.
- You can drill-down on the individual accounts listed.
Dimension balances – Used to view balances for dimensions. You can view the
individual detail for the dimension values, or review information based on a
pyramid and level.
- You can review information based on a specific company, ledger type, site,
budget, and version.
- You can also define the fiscal periods, columns displays, and total level.
- You must define the criteria before the data is displayed and you can change the
criteria as needed to review the information.
Account balance by currency – This provides the same information as the Account
Balances function; however, information is only displayed in the default currency
for the company/site selected.
Accounts – Used to view information for transaction posted to a specific account.
- You can drill-down on the individual transactions to view the source document
and complete journal entry.
- You can define criteria based on the company, site, currency, and date range.
- Click the Criteria button for additional options based on the journal, type, source
document, reference, etc.
Accounts by dimension – Used to view the detail for posting lines affecting an
analytical account, with the possibility of tunneling to the accounting documents.
Dimensions – Similar to the Accounts function; however, you are viewing
information for a specific dimension type and value.
Entries – Used to view information for all transactions posted for a specific
company/site, ledger, and date range.
- You can drill-down on the individual transactions to view the source document
and complete journal entry.
- Click the Criteria button for additional options based on the journal, account,
source document, etc.
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Closing Periods
Periods are closed by clicking the Close button in the Fiscal periods (GESPER) function
in the Common data > G/L accounting tables block.
Periods are closed for a specific company, ledger type, and fiscal year.
You can close more than one period at a time.
- Once closed, you cannot create, modify, or delete any entry journals in that
period.
You must close all periods in order to close the fiscal year.
Blocking Controls on Closing the Period
There are several prerequisites for closing the period that can block the period from
being closed.
The prior period must be closed and the next period open.
The current date is greater than the period end date.
Several prerequisites related to miscellaneous data must be watched over:
- All documents must be posted in accounting
- All stock accruals must be generated
- Verification that the recurring journals are generated
- Verification that there are no items to be reversed
- All journal entries, regardless of source, must be in a Final status
In addition to the above, the following are verified:
- The matched groups are balanced
- Open items are balanced
- Existence of GL accounts
- Consistency between the control account, the BP and the GL account
- For analytical accounting, the existence of natures, dimension views, and
dimensions are verified
The Pre-Closing Verification report identifies all the blocking and warnings issued
as part of closing the period.
- For example, if the balance of a certain account is contra nature against what is
defined in the account definition.
- This report is printed by selecting Financial Accountings from the Printouts >
Prints/group > Financials block.
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Use Fiscal year end (FIYEND) in the Financials > Closing processings block to close
the fiscal year.
You can close the fiscal year for a single or multiple companies and ledgers.
The start date for the new financial year is automatically displayed.
Once information is entered, a trace file is used to follow the operation that is
carried out.
You must define a closure document to use when an entry journal is generated to
balance accounts.
On the first day of the new fiscal year, an entry journal is generated to balance all
the carry forward accounts as well as the not carry forward accounts (results).
- The carry forward procedure is performed according to the two level structures
of dimension and dimension view code.
The same processes are reviewed as discussed for the last period of the fiscal year.
You can optionally choose to perform a year end simulation which takes into
account simulations. The year is not actually closed in this process.
- This is done through the Year end simulation (SIMULFINEX) function under
Closing in the Financials > Utilities block.
To re-open a closed fiscal year, use the Re-open fiscal year (OPNFIY) function
under Closing in the Financials > Utilities block.
- This deletes all the carry forward entry journals generated and will set the fiscal
year status to Open.
- You must follow the normal process for re-closing the fiscal year.
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Summary
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