Tutorial 36 - Accounting Data Entry Efficiencies

In this Tutorial we will introduce you to a number of data entry efficiencies:
Procedures - STEP FORWARD enables you to do things your way;
Distribution - pre-determined expenditure classifications;
Allocation - allocating expenditures over multiple-periods and generating transactions.


Exercise 36 - 1, Modify the Common Template and two Procedures
You configured the Common Template so that one of its fields is the Subledger number, and you defined the Input action of its Description field as Suggest (see Tutorial 18). You also configured the Description Procedure (see Tutorial 24, Exercise 24-3) so that the Description field of a Misc Subledger entry is assigned the Account Name of the Subledger. This is probably not desirable, a better method is to show the Vendor's Name from whom the service or merchandise was acquired. You can cause that to happen. However, before we show how to modify the Template and the Procedure, let's look at what actually happens under the current configuration. We'll assume that you are setting up an Accounts Payable for the Supplier "TelAll" for "Yellow Pages" Advertising:
you start out with AP Extra Template to record the Accounts Payable portion of the Document;
this particular Template has Procedures attached that allow you to enter the Vendor's name (TelAll), in whole or in part, into the Description field and have the applicable Subledger number retrieved from the database;
upon completing the Transaction by pressing the Line button, the next transaction line awaits your data input (the Amount is suggested and may have to be edited, and the Description shown is TelAll);
assume that the distribution calls for making an entry to Eastside (Prefix 2), Advertising (GL 710), for Yellow Pages; you would do the following:
edit the amount field
enter the Prefix
enter the GL Number
at this point the Template layout will be changed to that of the Common Template and the cursor would advance to the Description field which is still displaying TelAll
enter y or yellow or anything into the Description field
this will either display the Retrieved Data panel or retrieve Subledger 1 and the Description Yellow Pages from the database table and update the Subledger # field - but you will also have replaced the Description TelAll with Yellow Pages.

To not lose the Subledger retrieval capability and yet retain the Vendor's Name in the Description field of the expense record, you have to make these changes:

1. Launch the Transaction Templates editor and select the Common Template.
2. Add a View field below the Document Date field and call it Trade Name Hold.

 
3. Launch the Transaction Procedures editor and select the Common - GL Procedure.
4. Add new functionality:
Single row Retrieval from the Names table (Search: Last or Corporate Name = Description)
Condition: does the retrieved Name match the Description (if Yes, go to Calculation)
Calculation: Copy the text string in the Description field into the Trade Name Hold field

5. Select the Common - Description Procedure.
6. Change the Procedure by changing the Calculation object in the bottom left corner.
From this:

The completed Procedure should look like this:

Please Note:
This last procedural change will allow you to enter Yellow or whatever into the Description field for the purpose of retrieving the applicable Subledger number and name (you are using it in the Account Name field) and upon completion it will move the Vendor's Name (TelAll) from the Trade Name Hold into the Description field.

A Cosmetic Hint:
The newly added View field Trade Name Hold does, with the help of the GL and Description Procedures, what it is supposed to do. But do you want to see it happening? While you can't make it invisible, you can physically move the field from the visible portion of the template area. If you wish to do this, launch the Transaction Templates editor and move the Trade Name Hold field about two to three centimeters below the Account Name field. Then, when you define the viewable template area in the Accounting Data Entry window, you can adjust it so that the Trade Name Hold is outside the defined area.



Exercise 36 - 2, Add two GL Accounts and modify a Vendor's Terms Code

1. Launch the Prototype editor, and select the GL account from the Account Components Table window.
2. Select the Component > Insert row menu item and enter Code: 810, Description: Insurance; and repeat for Code: 900, Description: Security Services. Select the Component > Save menu item.
3. Select the Chart editor and select Chart > Add to Level > GL Account and add GL Accounts 810 and 900 to Prefix 1, 2, and 3.
4. Select the General Data Entry function and, select Trade from the Open Table panel.
5. Check the title bar; if the text does not read Trade (GL: 1 308), click on the Set GL account button and select 1 308 from the Select controlling account panel. Press the Find button and set the Search Criteria to Last or Corporate Name Like Mr. Press the Do button.
This will load the Mr Fixit record into the General Data Entry window browser.
Select the record in the browser to load it into the data entry area and change the Credit Terms Code to 4.


Exercise 36 - 3, Create four automatic Distributions
a. Let's assume that you receive two monthly billings from TelAll.
The first billing is for Reference 261-3305 and covers Yellow Pages Advertising, Telephone, and Fax charges. Yellow Pages cost is $198.50 split 50/50 between the Eastside and Westside Branches. Telephone and Fax are variable charges. The Reference number, being the main telephone number, will be repeated each month.
The second billing is for Reference tutor.com and covers the cost of e-mail which is deemed a head office cost.

b. You also pay a fixed monthly amount of Rent to Green Acres. In addition Green Acres provides Security Services which are distributed over all three Prefixes (Head Office and two Branches) on a percentage basis.

As part of this exercise, you will set up Distributions for these four accounting documents. You will also learn about predetermined Distributions involving Amounts that are either set to zero (variable amounts from time to time) or fixed amounts, as well as Distributions on a percentage basis.

To create an automatic Distribution, you have to first of all make an appropriate Accounting Data Entry. This can be a real transaction group or a simulated transaction group i.e. you enter a Document and after completing the Distribution definition, delete the Document. In this Tutorial you will keep the Transaction.

With the Transaction Document selected in the browser (see image above):

 

1. Select the Tools > Distribution > New menu item.
This will display the Distribution window.

 

 

2. Select the transaction line that is not an expense distribution (it's the first row with GL 308) and select the Document > Delete line menu item.
3. Select the next row (Prefix 2, GL 710).
This will load the data into the Template area.
Delete the Document Date (select the Date, press the Delete and the Return key) and press the Set line button.
This will also remove the Period value.
4. Repeat the instructions (#3) for the next row (Prefix 3, GL 710)
5. Select the next row (Prefix 1, GL 790) and delete the Amount and the Document Date.
6. Repeat the instructions (#5) for all remaining rows.

When finished, the Distribution window should look like this:

 
7. Select the Tools > Distribution > Save menu item.
This will display the Save Distribution panel.
Name: TelAll1
Description: TelAll 261-3305

8. Repeat the process to set up the Distribution for the second monthly TelAll billing. The Distribution should be to Prefix = 1, GL = 790, Subledger = 3, Reference = tutor.com, Description = TelAll, Amount = 0.00, and remove the Document Date. On saving:
Name = TelAll2
Description = TelAll tutor.com

9. Repeat the process to set up the Distribution for the monthly Rent (GL 890) to Green Acres: Prefix 1 (Head Office) $2,500, Prefix 2 (Eastside) $20,000, and Prefix 3 (Westside) $21,000 for a total monthly billing of $43,500. On saving:
Name = GreenAcres
Description = Rent

10. Repeat the process to set up the Distribution for the Security Service (GL 900) to Green Acres. Since you want to achieve a percent distribution, specify the percentages as the Amount in a "dummy" entry:
Account 1-308-12 = -100.00 (the trigger account)
Account 1-900 = 6.00
Account 2-900 = 46.00
Account 3-900 = 48.00
When the Distribution window is displayed, select Percent in the Inspector area.
This will cause the amount value of the Accounts Payable transaction line to be set to 100.00 and each of the three Distribution lines to a negative value expressing the Distribution amount given as a percentage of the offsetting Amount in the trigger account record. Thus, you have two options: you can either pre-determine the percentage by using a dummy entry as in this example or you can use an actual document and have STEP FORWARD calculate the percentages. The Distribution percentages are stored as negative values so that when the negative trigger amount is multiplied by the negative percentage, it will produce a positive Distribution Amount.

Delete the trigger (Accounts Payable) record; select/load each of the Distribution lines into the template area and delete the Reference and Document Date values; press the Set line button after completing each line. On saving:
Name = GreenMen
Description = Security

 

Finally, delete the "dummy" document from the Entered documents browser of the Transaction Data Entry window.


 
Exercise 36 - 4, Reviewing or modifying Distributions
You have now saved four Expenditure Distributions. They can be reviewed or modified by selecting the Tools > Distribution > Open menu item. This will display the Open Distribution panel showing all definitions:

Select the Distribution definition to be reviewed. This will then display the Distribution window with the selected definition in the bottom view.



Exercise 36 - 5, Entering a few Transactions, including Distribution triggers
During actual Transaction Data Entry, the system checks for possible Distribution triggers and when it finds a match it will display the Select Distribution panel which lists all definitions with the Distribution trigger. For example when you enter a Transaction Document from TelAll (account trigger 1-308-11), you will encounter this Select Distribution panel which shows all pre-defined distributions for the specific account trigger, with the first option pre-selected. In this example, the Distribution is Amount based, some of which are variable; as a result the All at once button is not an option and is, therefore, disabled. Click on the Ignore button if you want to bypass the pre-determined pattern, else press the 1 by 1 button and you will be guided, one Distribution at a time.

Make the following entries:
1. Select the Transaction Data Entry function and select, if not already suggested, PINV as the New Source Document.
2. Enter -43,500 into the first transaction line (it will have the account combination of Prefix 1 and GL 308 suggested); enter Green in the Description field; Document Date = January 1, 1999; Reference # = 9901, and press the Line button.
It is at this point that the Select Distribution panel is displayed and the GreenAcres definition will be pre-selected (because it is the first item in the listing).

3. Press the 1 by 1 button and step through the three Suggested Distribution lines.
4. Enter -2,475.60 into the first transaction line (it will have the account combination of Prefix 1 and GL 308 suggested); enter Mr in the Description field; Document Date = January 25, 1999; Reference # = 8967, and press the Line button. Enter the offsetting amount of 2,475.60 to Prefix 1, GL 870, and enter Office into the Description field. Complete the line.
5. Enter -800 into the first transaction line (it will have the account combination of Prefix 1 and GL 308 suggested); enter Green in the Description field; Document Date = January 31, 1999; Reference # = 9502S, and press the Line button.
It is at this point that the Select Distribution panel is displayed and the GreenAcres definition will be pre-selected (because it is the first item in the listing). Select GreenMen.

6. Press the All at once button. All three Distributions will be calculated automatically and the Document will be completed (the Document lines browser will be empty). Click on the last Document in the Entered documents browser to display the transaction lines - see below:


Exercise 36 - 6, Entering a Transaction invoking Allocations
In this exercise you will record an obligation for Insurance which is being supplied by Green Acres. The coverage applies to all three locations (Prefix 1 - 3) for the twelve months starting January 28, 1999 and ending on January 27, 2000 which impacts thirteen (13) accounting periods. The Allocation process is triggered when an entry is made against a GL Account that has been flagged in the Chart editor for Allocated transactions (Account 1-180 in our Tutorial series). Consequently, in order to make allocations to the three locations, the liability for Insurance has to be distributed to Account 1-180 in three installments. Make the following entry: Document Date = January 15, 1999; Reference # = IN9901; Amounts to be entered:
Account 1-380-12 = -21,750.00
Account 1-180 = 1,250.00
Account 1-180 = 10,000.00
Account 1-180 = 10,500.00
However, the Allocation process requires intervention every time an entry is made to Account 1-180. So follow these instructions carefully (the Source Document should be PINV, and the Transaction Data Entry status should be for a New Doc i.e. cursor is in the Amount field and the Account default is 1-308):

1. Enter -21,750 into the first transaction line; enter Green in the Description field; Document Date = January 15, 1999; Reference # = IN9901, and press the Line button. Enter an offsetting amount of 1,250 to Prefix 1, GL 180. Complete the line.
This will cause the Allocated Transactions panel to be displayed.

2. Change the Start date to January 28, 1999 enter 12 into the Number of periods field. Press the Allocate button.
These steps will calculate the End date to be January 27, 2000 and determine in the Allocation Confirmation area that the Number of pairs of entries to be generated is 13, spanning the Start period 99/01 to the End period 00/01.

3. If satisfied with the specification, click on the Confirm button.
This will cause the Automatic Allocation window to be displayed. It shows three editable fields (the other fields have been disabled as they contain inherited data that must not be touched).
Enter Prefix 1 and GL 810 as this is the Expense Account to which the 13 pairs of generated entries are to be distributed.
(Please note the distinction of our word usage: we distribute expenditures to GL Accounts and we allocate expenditures over a period of time.)
The Description suggests the name of the Vendor Green Acres as possibly the most logical choice i.e. most people like to see Vendor Names in their Expense accounts e.g. replacing Green Acres with Insurance is not as informative since GL 810, in which the item will be listed, is already called Insurance.
The Document Date and Reference # field is locked in. This way the generated transaction pair that is saved and/or posted into Period 00/01 (January, 2000) will carry the Document Date and the Reference # that gave rise to the entry in the first place.

4. On completing the input to the editable field, press the Prototype line Enter button.
This will re-display the Transaction Data Entry window with the 13 pairs of entries added to the Document lines browser. Note that the Running total is now sitting at -20500.00 and the Amount field suggests 20500.00.

5. Edit the Amount field to read 10000.00; Prefix = 1; GL Account = 180.
This will cause the Allocated Transactions panel to be displayed.
Complete the period information as you did in steps 1 and 2.
This will cause the Automatic Allocation window to be displayed.
Complete the Prototype line by entering Prefix 2 and GL 810 as this is the Expense Account to which the next13 pairs of generated entries are to be distributed and press the Prototype line Enter button.
This will re-display the Transaction Data Entry window with the second 13 pairs of entries added to the Document lines browser. Note that the Running total is now sitting at -10500.00 and the Amount field suggests 10500.00.

6. Do not edit the Amount field but accept the suggested 10500.00; Prefix = 1; GL Account = 180.
This will cause the Allocated Transactions panel to be displayed.
Complete the period information as you did in steps 1 and 2.
This will cause the Automatic Allocation window to be displayed.
Complete the Prototype line by entering Prefix 3 and GL 810 as this is the Expense Account to which the final13 pairs of generated entries are to be distributed and press the Prototype line Enter button.
This will re-display the Transaction Data Entry window with the final 13 pairs of entries added to the Document lines browser. However, since the Running total is now 0.00, the Document is saved as Completed and closed.
Select the last Document in the Entered documents browser and select the second last document line in the Document lines browser:

The Document line which you selected is the January, 2000 portion of the Insurance expense for the Westside Branch (Prefix 3). Note the Document Date (January 15, 1999) and the Period (00/01). Look at the other pairs of entries, you will see that the amounts are calculated precisely to the number of days in a given period.

 

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