Tutorial 20 - Chart Inspector

The Chart Inspector allows us do designate GL Accounts to carry additional capabilities:
General Ledger Control Accounts
Attach a Subledger Template to a GL Account which enables the analysis of the GL Account by Subledgers which define e.g. AR (Customers), AP (Vendors), Inventory (Product), etc.

Account Locking
See On-line Help - not covered in this Tutorial.
Allocated Transactions
GL Accounts so identified will prompt the user to allocate a given transaction over a specific benefit period e.g. Prepaid Insurance over the term of the coverage.

Open Items analysis
Open item analysis refers to the process of matching Secondary Transactions against Primary Transactions of an accounting transaction cycle e.g. Sales Invoices and Purchase Invoices usually occur before Payments are received or made. Thus, you can think of the Invoice as the Primary Transaction and the Payment as the Secondary Transaction. This matching process is usually associated with Subledgers but can also be carried out with GL Accounts that have not been designated as Control Accounts, although this latter option will not be dealt with in this Tutorial.

Check writing
A special feature associated with Open Items. It enables check writing against designated Control Accounts.


Exercise 20 - 1, Making Accounts Receivable a Control Account
You will attach a Subledger Template to the GL Account and designate the account to be subject to Open Item Analysis.

1. Launch the Chart editor.
Select the Head Office Prefix and then double-click GL Account 112.
This will display the GL Account Inspector's Miscellaneous view.
2. Select the Trade Subledger.
This will place an icon button into the Inspector column of the Account Chart Builder window.
3. Select the Inspector's Open Items view and make these additional selections:
Set the Open Item account switch ON.
This will open up the bottom half of the Open Items view and display the General sub-view.
Retain all default settings: Match field = Reference #; Generate matching transactions = Hand-picked; Primary item when amount is = positive.
This means that transactions whose amount are positive i.e. debits (e.g. Sales Invoices) are added to the Open Item table automatically (transparent to the user) and that they will be flagged that matching will be done relative to the Primary transaction's Reference #, and that the matching process is hand-picked i.e. when a Secondary Transaction is being processed, then the user will be presented with a list of unmatched Open Items applicable to the given account number combination from which the user may select one or more items for applying the amount of the Secondary transaction.
When finished, the two views of the Inspector should look like this:

 



Exercise 20 - 2, Making Accounts Payable a Control Account
You will attach the Trade Subledger Template to the GL Account and designate the account to be subject to Open Item Analysis and Check writing. Assume that you have just learned that at least one of the Vendors offers terms according to which you are entitled to take discounts, if paid within a certain time line. But we did not provide an account against which we can credit the Discount Earned. So let's first of all set up a new account; we can do that from within the Chart editor even though we do not have the account present in the Prototypes.

1. Select the Chart > Add to Level > GL Account... menu item.
This will display the Add Code window - you have worked with this before.
Select Head Office (Prefix 1).
Click on the New code button in the Add Code window.
This will display the New Code window.
Enter Code as 990 and Description as Discounts Earned; then press the Enter button.
This will add the account 990 - Description to the Inventory of Accounts (Prototypes), display it in the Add Code window (being a view of the Inventory of Accounts) but disabled because it is already added to the Head Office Prefix as a result of the actions you just carried out.

We took you through this exercise to show you how to add a new GL Account from within the Chart editor. We selected account 990 because it can be argued that it fits in the number range for accounts that can be classified as Other Income & Expenses; however, for the purpose of this Tutorial, we wont bother with adjusting the Headers.

2. Now attach the Trade Subledger to the Head Office - Accounts Payable (1-308) and declare it as Open Items. You follow the exact same steps as for Accounts Receivable (Exercise 20-1) with two exceptions:
Primary item when amount is = negative.
Accounts Payable Invoice (the Primary transaction) is a credit (negative) amount in accounting.
You will want to write checks and must give the specifications as they apply to this account.
This feature permits you to have multiple accounts against which you can write checks (e.g. Accounts Receivable - refund of Credit balances). Since STEP FORWARD also uses this GL Account Inspector view to specify the bank account against which the checks are to be drawn for the applicable Control Account, you can see the possibilities e.g. have multiple Accounts Payable accounts (for different currencies) and drawing checks on their respective currency Bank accounts.

3. After completing the General Open Items view, select the Check Writing view and complete it as per example:
The Source document selection is CGC (Computer Generated Checks).
The "Pay To" in column shows the fields (in alphabetical order) associated with the Subledger Template (Trade) which is attached to Control Account (1-308) for which this settings are being established. The proper selection is Last or Corporate Name because it is the Subledger field in which the name of the Payee is found.
The "Due Date" in column shows all fields (in alphabetical order) of Date data type which are found in the Template that will be triggered by the Prefix/GL/Sign/Source (1/308/-/any). The proper selection is Due Date (you must make this choice because the names attached to any field are meaningless to STEP FORWARD since it leaves all decisions to you and does not insist on a field that is entitled Due Date, you could also have called one of the date fields Pay on this day if I have to).
The Bank account on which to draw the check is entered in as Prefix/space/GL (1 104) and the Discount account is specified in the same manner Prefix/space/GL (1 990).


Exercise 20 - 2, Making Prepaid Expenses an Allocating Account
For the purpose of this Tutorial, assume that Account 1-180 is used for expenditures which are acquired prior to or close to the beginning of a time-line definable benefit period e.g. Prepaid Insurance, and that you wish to not only set up the prepaid value but to automatically and precisely generate the proper allocation over the benefit period as part of recording the expenditure in the first place.

1. Select Head Office - Prepaid Expenses.
Double-clicking is not required if the Inspector is still displayed from the previous Exercise.
2. Select Permitted, future only from the Allocated Transactions area of the Inspector's Miscellaneous view.


Exercise 20 - 3, Making more Control Accounts
Attach the Misc Subledger Template to Head Office Shareholders' Loans, Communications, Professional Fees, and Repairs & Maintenance.

1. Select Head Office - Shareholders' Loans.
Select the Misc Subledger from the Subledger area of the Inspector's Miscellaneous view.
3. Repeat for Head Office - Communications.
3. Repeat for Head Office - Professional Fees.
4. Repeat for Head Office - Repairs & Maintenance.

You have now finished with the Head Office requirements and the Account Chart Builder window should look like this:

Exercise 20 - 4, Attaching Subledgers to GL Accounts of the East Side Branch
Attach the specified Subledger Templates to the following accounts:
Stock: (2-120), (2-510), (2-520), (2-610), (2-620)
Misc: (2-710), (2-790), (2-870)
The Account Chart Builder window should look like this:


Exercise 20 - 4, Copying GL Accounts of the East Side Branch to the West Side Branch
You are now ready to attach the applicable GL Accounts to the West Side Prefix; however, since this Account Chart is identical to that of the East Side Branch, you can use another technique

1. Select all GL Accounts of the East Side (use Ctrl key for multiple selection of accounts).

2. Drag any of the selected accounts into West Side prefix (the Copy operation will include all selected accounts, regardless of which one was dragged):

Please Note:
The Preferences selection for Copying of Control Accounts called for Ask before copying each Subledger:

Consequently, after depositing the image into the "open File Folder" in the Current Selection well, the GL Accounts will be attached to the West Side Branch (Prefix 3); however, before copying a GL Account that is defined as a Control Account, this Subledger Attention panel will ask for confirmation, in each and every case:

On completion the Account Chart Builder window for GL Prefix 3 - West Side Branch will look like this:


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