Exact Globe | Financials

Release 390

Exact Globe | Financials

release 390

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The information provided in this manual is intended for internal use by or within the organization of the customer only. Exact GroupB.V. has carefully selected the content of this document. However, the content may not always represent reality or may becomeout-dated. Information may be changed or updated without notice. Exact Group B.V. may also make improvements and/orchanges in the products, prices and/or the programs described in this manual at any time without notice.

Exact Group B.V. shall not be liable for the accuracy of any of the examples included and procedures described in this document,nor shall Exact be liable for any ensuing damage or loss of any nature whatsoever arising from or relating to its use.

No part of this manual may be reproduced, published and/or transmitted in any form or in any way, electronically, by printphotocopy, microfilm or any other means, without the prior written consent of Exact Group B.V.

© Copyright Exact Group B.V. All rights reserved. All trademarks mentioned herein belong to their respective owners. Exact andExact Software are a registered trademarks of Exact Group B.V.

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This guide provides the information you need to work effectively with Exact GGlobe. It is part of the series of user guides forExact GGlobe. The goal of this documentation is to help you to get quickly acquainted with the product and the possibilitiesit offers. It will help all users, especially those without much experience with our software, to get started with and benefitfrom the product straightaway.

Exact GGlobe is an integrated software solution; its modules of related business processes function together in an integratedmanner. Besides the user guides, there are several information sources, related to the software, available to you. You canaccess online help documents on Exact GGlobe functionalities while working with the software by just pressing the F1 key. Thelist of help document also contains release notes related to the product. They inform you of the improvements and functionaladditions in the various releases of the product.

You can also access the help documents, release notes and other related documents online through the Exact Customer Portalon www.exactsoftware.com. The Customer Portal is a protected part of the Exact Software internet site, which has been speciallydeveloped to provide you with information and to help you get the maximum yield from your software. This portal informs youabout our contacts, downloads, FAQs, and the latest product news. We invite you to use the portal as often as you wish!

We value your comments and feedback. We hope that you will use the reader's feedback form at the end of this user guideto tell us how we can improve this manual. Please take a few minutes to fill in the form and return it to us.

Thank you for using Exact GGlobe and this user guide!

Welcome to Exact Globe! EXAC

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Financial management is one of the most important aspects for any business. A company's financial management involvesresources, customers, suppliers and its daily financial operations.

In Exact GGlobe, the company's financial and logistics information is incorporated into a single central transaction table. This includesfinancial information on historical, current and future cash flow. The core modules of E-AAccount and E-PPassword together with E-MMultiCurrency, E-CCost AAnalysis, E-BBudget and E-CCredit MManagement give an up-to-date insight on the company's cash position and value.The various functions for forecasting, budgeting, analysis and reporting not only made financial information easily available for themanagement of a company, they also provide transparency and traceability.

The advantages of financial management with Exact GGlobe are:

• Up-tto-ddate aand aaccurate iinformationOne central database ensures accurate and up-to-date financial information on historical, current and future cash flow.

• Powerful aanalysis ffunctionDetailed reports, analysis and statistics are presented in various formats, including Microsoft Excel, to facilitate decision makingand finalizing strategies.

• Powerful aand fflexibleWith E-CCurrency, variable exchange rates by specific days are possible. This is important for organizations with businessesinvolving multiple countries and currencies as it reflects the actual cost and revenue at a particular point of time.

This user guide will cover the following chapters:

• Chapter 1: Setting Up • Chapter 2: Financial Accounting and Reporting• Chapter 3: Accounts Receivable and Payable Management• Chapter 4: Management Information • Chapter 5: Advanced Features

Introduction EXAC

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Welcome

Introduction

Chapter 1: Setting Up 1.1 System Settings1.2 Financial Periods1.3 Chart of General Ledgers1.4 Journals1.5 Accounts Receivable and Accounts Payable1.6 Payment Conditions

Chapter 2: Financial Accounting and Reporting 2.1 Opening Balance Entries2.2 Bank/Cash Financial Entries2.3 Purchase Financial Entries2.4 Sales Financial Entries2.5 General Journal Entries2.6 Recurring Entries2.7 General Ledger Card2.8 Revaluation2.9 Processing Financial Entries2.10 Voiding Entries2.11 Financial Statements

Chapter 3: Accounts Receivable and Payable Management3.1 Accounts Receivable and Payable Cards3.2 Accounts Receivable and Payable Balance List and Reports3.3 Aging Analysis3.4 Credit Management

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Contents

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Chapter 4: Management Information4.1 Financial Analysis4.2 Exporting Financial Information to Microsoft Excel4.3 Audit Trail

Chapter 5: Advanced Features5.1 Financial Budgeting5.2 Cost Centers and Cost Units Management5.3 Using External Numbering5.4 Processing Balance Sheet General Ledger Accounts

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Chapter 1 | Setting Up

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System Settings

Chart of General Ledgers

Accounts Receivableand Accounts Payable

Financial Periods

Journals

Payment Conditions

SETTING UP

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In Exact GGlobe, there are some basic setup that need to be made before you can actually start using this system.

The following are the topics relevant to this section:

• System settings• Financial periods• Chart of general ledgers• Journals• Accounts receivable and accounts payable • Payment conditions

1.1 System Settings

Setting up company data settings

In this section, you need to set up the address and account code for your company. These data are used throughout the systemespecially when you want to print documents or create payments/receipts.

Note: The company number and name in the Company and Company nname boxes are defined when you create a new companyfrom the Create ccompany wwizard setup.

1. Setting Up

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To sset uup ccompany ddata ssettings:

1. Go to System/General/Settings, and click Company ddata ssettings under the Settings section. You will see the Companydata ssettings screen.

2. Under the Company section at Account, type or select an account code for your company. The selected account works as adebtor or creditor account for you to receive or make payment to your company at Cash fflow/Entries/Cash fflow. For example, you will use this account when your company receives payment from a bank. For more details on how todocument payments and receipts, see 2.4 Cash Inflow and Cash Outflow Process in the Cash FFlow user guide. You cancreate an account at Finance/Accounts rreceivable/Maintain or Finance/Accounts ppayable/Maintain if the requiredaccount is not available. For more details, See 1.5 Accounts Receivable and Accounts Payable.

3. Type the address, postcode, city, state/province, and country code of your company at Address lline 11, Address lline 22 andAddress lline 33, Postcode, City, State / Province, and Country ccode.

4. At Telephone nnumber and Fax nnumber, type the telephone number and fax number of your company.5. Under the Numbers section at Account nnumber bbank, type the bank account number of your company.6. Click Close, and the message "Save changes?" will be displayed. Click Yes to save the changes and to exit.

Setting up general settings

In this section, the most important data that needs to be set up would be the default currency. The default currency selectedwill be utilized throughout the system. When you create a new company, a default currency is created based on the license thatyou purchased. You can select another currency for your company so long as there are no transactions created before this setup.

Important: Please make sure that you set up the correct currency as this data cannot be changed after you have enteredtransactions into Exact GGlobe.

Tip: When you have selected a default currency, you need to determine the type of exchange rate notation usedby your company. Exchange rrate nnotation is used throughout the system whenever exchange rate calculation isinvolved. It actually determines how the exchange rate is entered and displayed. There are two types of notationwhich you can select from the system. There is the standard and Anglo-Saxon notation.

When you select the standard notation, the system uses the foreign currency as the base currency for exchangerate calculation. For example, USD is the foreign currency whereby USD 1 = EUR 0.78 (default currency).

As for Anglo-Saxon notation, the default currency acts as the base currency for exchange rate calculation. Forexample, EUR 1 (default currency) = USD 1.28.

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To set up general settings:

1. Go to System/General/Settings, and click General ssettings under the Settings section. You will see the General ssettings screen.2. Under the Standard section at Default ccurrency, type or select the default currency used by your company.3. Select the exchange rate conversion notation at Exchange rrate nnotation. 4. Under the Descriptions iin llist bboxes section, type or select other languages that your company will use for descriptions.

You must type or select at least a default language that your company uses throughout the system at Description ffield 11.5. Click Save, and the message "Changes will only take effect after restarting the software" will be displayed. Click OK.

Note: For more details on Period aand yyear ccontrol settings, see 1.2 Financial Periods - To set up fiscal periods.

Setting up document settings

In this section, you can define the document layouts to be used when printing the various types of documents in the businessoperations. Apart from defining the document layouts, you can also create new layouts or modify the existing layouts accordingto your preferences. By default, the system provides several standard layouts. For every document, you can link to a specificlayout in order to use this layout whenever the document is printed.

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To sset uup ddocument ssettings:

1. Go to System/General/Settings, and click Documents ssettings under the Settings section. You will see the Documentssettings screen.

2. At E-mmail aand sstore aattachment aas under the General section, select the format of the e-mail attachment you want to usewhen sending documents such as quotations, order confirmations, sales orders, delivery notes, service slips, purchaseorders, blanket purchase orders, invoices, and debtor reminders via e-mail. The two options available are HTML and PDF.

3. Under the Financial section at Reminder, the first layout for the Debtor rreminder is displayed. To define the layouts for allthe Debtor rreminders, click Zoom and you will see the Reminders screen.

4. On the Reminders screen, click Select at Reminder 11 - Reminder 99 to select the document layout to be used for eachdebtor reminder. To select the layout, click the layout you want to use, and then click Select. The selected debtor reminderlayouts will be used whenever debtor reminders are printed at Finance/Accounts rreceivable/Reminders/Print. If youselect the Debtor rreminder llayout 11 as the layout for Reminder 11 and Debtor rreminder llayout 22 as the layout for Reminder2, this means that the Debtor rreminder llayout 11 will be used when you print the debtor reminder for the first time, whilethe Debtor rreminder llayout 22 will be used as the layout to print the debtor reminder for the second time and so on.

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5. Besides selecting the debtor reminder layouts to be used, you can also link the specific layout to different debtors. Forexample, on the Reminders screen, click Link llayouts tto ddebtors at Reminder 11 and you will see all the debtors listedin the Layouts: RReminder 11 screen. Select the debtor(s) you want to link a layout to and click Change.

6. At Layout, type or select the layout which you want to link to the debtor(s) at Layout and then click OK. With this function,whenever a debtor reminder is printed for the debtors that you have linked to the layout, the specific layout will be used.To remove the link, select the debtor(s) that you want to remove the link on the Layouts: RReminder 11 screen, and thenclick Unlink.

7. Go to Debtor llabels and Creditor llabels under the Financial section to define the layouts to be used for debtor andcreditor labels. At Debtor llabels, click Select to select the layout to be used for debtor labels. To select the layout,click the layout you want to use, and then click Select. Follow these steps to select the layout for Creditor llabels. Thelayouts you have selected for debtor and creditor labels will be used when the labels are printed at Finance/Accountsreceivable/Labels and Finance/Accounts ppayable/Labels respectively.

8. To link the layout of the debtor label to specific debtors, click Link llayouts tto ddebtors at Debtor llabels. Follow thesteps to link the layout of debtor reminders to debtors in steps 4 and 5.

9. You can also link the layout of the creditor label to specific creditors by clicking Linking llayouts tto ccreditors at Creditorlabels. Follow steps 4 and 5. However, notice that this time you are linking the layout to the creditor(s).

10. At Debtor sstatements, click Select to select the document layout to be used for debtor statements. To select thelayout, click the layout you want to use, and then click Select. The selected debtor statement layout will be used wheneverdebtor statements are printed at Finance/Accounts rreceivable/Debtor sstatements.

11. Click Save after you have defined all the layouts to be used for debtor reminders, debtor and creditor labels, anddebtor statements.

Setting up numbers settings

This section allows you to edit and generate sequential numbers for general, cash, bank, and purchase journal entries.Whenever you create a general, cash, bank, or purchase journal entry, the system will assign the next available number fromthe range of numbers defined in the Numbers ssettings into the Our rref column of the journal entry.

Note: Under the Accounts section, you can define the default sequential numbers for your debtor and creditor accounts. The rangeof sequential numbers defined will appear in the Code box of debtor or creditor maintenance whenever you create new accounts.

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To sset uup nnumbers ssettings:

1. Go to System/General/Settings, and click Numbers ssettings under the Settings section. You will see the Numberssettings screen.

2. Under the Financial section, click Edit next to General/Cash/Bank jjournal to modify the sequential numbers forgeneral, cash, and bank journals. By default, the system will assign the range of sequential numbers. The sequentialnumbers that you assigned is the our reference number in the system. The Our rref. is the reference number that you set asa reference for a financial transaction. For example, when a purchase transaction is recorded in the purchase journal, theinvoice becomes the source document and the invoice number becomes the Our RRef. in the purchase journal. In addition,your company will refer to this number when a payment is received. As the Our RRef. relates to the different processes in afinancial transaction, it is possible to use this reference number to trace the financial transactions of your business.

3. Click Edit next to Purchase jjournal to modify the sequential numbers for purchase journal. By default, the system willassign the range of sequential numbers.

4. Click Save, and the message "Changes will only take effect after restarting the software" will be displayed. Click OK.

Note: For more details on Logistics settings, see 1.3 Number Settings in the Sales OOrder user guide.

Important: Whenever you run out of numbers at Qty. ffree, click Edit for the system to generate the new sequential numbersat Generate at the Numbers screen.

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1.2 Financial Periods

Setting up fiscal periods

You need to set up the fiscal periods in order to determine your company's accounting period. With fiscal periods, you can easilyprepare financial reports, balance sheet, and profit and loss statements.

Important: When you select a financial year and click Open or New at the General ssettings screen (view procedure below), youmay encounter the message, "First define: Journal". This occurs when there are no journals set up for the new companydatabase. For more details on creating journals, see 1.4 Journals.

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To sset uup ffiscal pperiods:

1. Go to System/General/Settings, and click General ssettings under the Settings section. You will see the General ssettings screen.2. Under the Period aand yyear ccontrol section, click Edit next to Period-ddate ccalendar to create the fiscal period.3. Click New to create a new fiscal period. You will see the Period-ddate ttable screen.4. At Financial yyear, type the financial year that you want to create and then click Generate. You will see the Generate pperiod-

date ttable screen.5. Click OK for the system to generate the fiscal periods based on the default settings of 12 months or Cancel to exit. If your

company does not define the financial periods as month, you can choose to create the fiscal periods within a date rangeor copy the periods from a previous financial year.

6. You will return to the Period-ddate ttable screen. Click Save to save the newly created fiscal period. You will see theConditions screen.

7. Click OK for the system to generate the fiscal period in the specified number of preceding and following years as well as inclosed period(s). You can choose to only create a fiscal period for a particular year. Take note that you should not createtoo many fiscal periods into the future as this may lower the system's processing speed since each period is created withopening balance entries for each subsequent year.

8. Click Save and Close to save the new fiscal period and to return to the General ssettings screen.9. Click Close at the General ssettings screen to exit.

Note: If your company practices financial transactions for more than 12 months, you can make use of the Settings button. AtMaximum eentry pperiod found in the Settings screen, you can define the maximum number of periods for your company.

Closing and reopening financial periods

You can close all the financial periods in a financial year or multiple financial years which have been created in the system.Closing financial periods prevent transactions to be entered for that particular period. This is important as you can block anytransaction to be recorded in a financial year which has ended and all the previous transactions have already been processed.

In addition to closing the financial periods, it is also possible to reopen all the closed financial periods. You may want to reopenthe financial periods to enter certain transactions in that period which you have missed earlier.

To cclose oor rreopen aall tthe ffinancial pperiods iin aa ffinancial yyear:

1. Go to System/General/Settings, and click General ssettings under the Settings section. You will see the Generalsettings screen.

2. Under the Period aand yyear ccontrol section, click Edit next to Period-ddate ccalendar to view the period-date table. Underthe Open column, a green check mark indicates that there is at least one open journal in the financial periods of the year,while a financial year without the green check mark indicates that all the journals in the financial periods of the particularyear have been closed.

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3. To close all the financial periods in a particular year, select the year which is indicated by a green check mark under theOpen column, and then click Close pperiods. You will see the message "Click/reopen periods?" Click Yes to close thefinancial periods in that year. Notice that there will be an error message displayed when you want to close the financialperiods of a year in which there are still entries that have not been posted or hour entries that have not been authorized.The message will display the journal and the financial period which cannot be closed. If you have met the criteria to closethe periods, you will be able to close the financial periods of a particular year and the green check mark will not be visibleon the period-date table.

4. To reopen all the financial periods in a particular year, select the year which is not indicated by a green check mark underthe Open column, and then click Reopen pperiods. You will see the message "Click/reopen periods?" Click Yes to reopenall the closed financial periods in that year.

Note: You can select more than one year to close or reopen the financial periods in the selected years. Select the years, andthen click Close pperiods to close all the financial periods in the selected years. To reopen financial periods of multiple years,select the years, and then click Reopen pperiods to reopen all the closed financial periods in the selected years.

Deleting financial years

In a common business scenario where a company has been operating for many years, it is possible to delete the financial yearsif you no longer want to keep the data entered during the particular years. However, the system will check on certain conditionsbefore you can delete a financial year. These conditions include:

• Only the first and the last financial year in the period-date table can be deleted.• All journal entries and intercompany entries of the financial year need to be posted.

To ddelete aa ffinancial yyear:

1. Go to System/General/Settings, and click General ssettings under the Settings section. You will see the General ssettings screen.2. Under the Period aand yyear ccontrol section, click Edit next to Period-ddate ccalendar to view the period-date table.3. Select the year which you want to delete and then click Delete. 4. Click OK to confirm the deletion. However, if the selected year does not fulfill the conditions that allow for deletion, you will

see the warning message "Only the first and last financial years can be deleted. Can't delete: year!" if the selected year is notthe first or the last financial year in the period-date table. If you select a financial year to be deleted which still have entriesthat have not been posted, you will see the warning message "In use:Transactions. Can't delete: year!" In this scenario, youneed to post the entries or delete the entries that have not been posted before you can delete the financial year.

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1.3 Chart of General Ledgers

The chart of general ledger is the place for you to create and maintain the general ledger accounts of your company. As generalledgers are the main financial records for your company, you will need to create the necessary general ledgers before you cancontinue to enter your daily transactions.

The following are the topics relevant to this section:

• Setting up account categories• Creating general ledgers• Editing general ledgers• Deleting general ledgers• Setting up general ledger settings

Setting up account categories

It is important to set up various account categories to group your general ledger accounts. In Exact GGlobe, you can set up asmany as five main levels of categories to group the general ledger accounts. With this function, all the general ledger accountscan be meaningfully arranged in the chart of general ledgers under the different categories and subcategories based on theirreporting groups.

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To sset uup aaccount ccategories:

1. Go to Finance/General lledger/Chart oof GGL's.2. On the toolbar, click Categories. Click to expand the different levels of categories to view the subcategories which

are linked to the general ledger accounts. Click to collapse the view. 3. To set up a new account category, select an existing subcategory and then click Add. 4. At the Categories screen, there will be five tabs which are Category 11, Category 22, Category 33, Category 44, and Category 55.

Click any of the tabs to create a new subcategory under the specific category level. 5. Click New. At Subcategory, type the subcategory identification number for the new subcategory and at Description, type

the description of the subcategory. For example, you may want to create a subcategory under the category 1 for fixedassets. You can type "Fixed assets" at Description.

6. Click Save. Notice that the new subcategory created under Category 11 will be listed as one of the subcategory optionswhen you create and link a new general ledger account to Category 11 at Finance/General lledger/Chart oof GGL's. For moreinformation, see 1.3 Chart of General Ledgers - To create general ledger.

Note: You can also create new account categories when you create a new general ledger account. Go to Finance/Generalledger/Chart oof GGL's, and click New. Under the Reporting GGroup section, there are five main category fields representing the fivelevels of categories. Click at any of the category fields to open the Categories screen. Next, follow steps 4 - 6 to set up newsubcategories under the various category levels.

Alternatively, you can also create new account categories on the chart of general ledgers. Go to Finance/General lledger/Chartof GGL's. Select any existing category or subcategory, and then right-click on it. Next, click New. You will see the Categoriesscreen. Follow steps 4 - 6.

Creating general ledgers

When you create a general ledger account in the Maintain aaccounts screen from the Chart oof GG/L's located at Finance/Generalledger/Chart oof GG/L's, eight tabs are displayed. In this section, only the Basics tab is explained as the remaining tabs can bedefined later according to the requirements of your company.

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To ccreate aa ggeneral lledger:

1. Go to Finance/General lledger/Chart oof GG/L's. Click New to create a general ledger. You will see the Maintain accountsscreen in Advanced mode.

2. Under the General section at the Basics tab, type a unique general ledger number at G/L NNumber. This is mandatory. 3. Type a general ledger description at Description.4. Select the account type for the general ledger at Subadministration. Subadministration determines the type of account

that the general ledger account belongs to. The options displayed at Subadministration depend on the main reportinggroup selected. When Balance ssheet is selected, you will only see neutral, debtor, and creditor accounts. If Profit && LLossis selected, you will see neutral, revenue, and expense accounts. For other options such as bank, cash, and assetaccounts, further setup is required before the system can automatically update these settings. For example, the systemwill update the Subadministration box from Neutral aaccount to Bank aaccount when you create a bank journal and link thebank account number.

5. At Balance, select Credit or Debit to indicate the balance type. Normally, to increase the general ledger account'sbalances, select Debit whereas to decrease the general ledger account's balances, select Credit.

6. Under the Reporting GGroup section, select Balance ssheet or Profit && LLoss to define the type for the general ledger account. 7. Type or select the categories which the general ledger belongs to under the Categories screen. When you create a general

ledger, a minimum level of 1 category is defined.8. Click Close to save the general ledger and to exit. A message "Save the new data?" will be displayed. Click Yes to save

the changes.

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Note: There are some other fields which you can use after you create a general ledger. The following are the explanation on theusage of each field found under the Basics tab:

BlockedSelect this check box to prevent further entries to be manually made to the selected general ledger. Only system generatedentries can be made to the blocked general ledger.

Presentation: CCompressedSelect this check box to display the general ledger grouped by period in the general ledger card.

LinkingSelect this check box to tie two or more transactions together for reconciliation purposes in the General lledger ccard. By default,this option is mandatory when the subadministration for the selected general ledger is of debtor or creditor account. Twoadditional buttons, Link and Unlink, will appear in the General lledger ccard when you select the Linking check box.

Allow rrevaluationSelect this check box to allow the revaluation for the general ledger account. This check box is enabled only when thesubadministration selected is of neutral, stock, or asset account.

Intercompany ttransactionsSelect this check box to allow intercompany transactions for the general ledger account. Intercompany ttransactions is used inconjunction with a special intercompany transaction journal to create offset entries for intercompany transactions acrossdifferent administrations. Example of an intercompany transaction is a company headquarters buying flight tickets on behalf ofits subsidiaries. The expenses incurred will be entered as an intercompany transaction with the expenses transferred to thesubsidiaries. This check box is enabled only when the reporting group of the general ledger account is Balance ssheet and thesubadministration is Debtor or Creditor account.

Analytical RRequiredThere are four check boxes under this section. You can choose to select one or all of the check boxes for the general ledgeraccount. When you select the required check boxes, this means that Quantities, Item, Resource, or Project must be typed orselected when you create financial transactions (linked to the general ledger account) at the journal entries.

Important: To determine when the analytical requirements are used, you need to select the available option at Check AAnalyticalvalues under the Entry section at General lledger ssettings. For more details, see Setting up general ledger settings.

Results && TTransactionsThis section displays the summary of transactions involving the general ledger account. The summary shows the total balance,debit and credit amount of the general ledger account, the number of processed and unprocessed transactions in the generalledger account as well as the last transaction date in the general ledger account. You can view the information when you openan existing general ledger account.

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The following are the explanation on the usage of each tab found in the general ledger maintenance screen:

Cost ccenters/cost uunits ttabAt this tab, you can determine whether the cost center or cost unit is mandatory when you create financial transactions with thegeneral ledger account. When the general ledger account is required to have a mandatory cost center or cost unit, a default costcenter or cost unit is automatically linked by the system to the general ledger account.

You can type or select a default cost center or cost unit for the general ledger account. The system will display the default costcenter whenever you create financial transactions with the selected general ledger account.

You can also have a list of cost centers and cost units for the general ledger account. The system will only display the createdlists and you can select a different cost center or cost unit when you create financial transactions. At the same time, you cancreate cost allocation for the available cost centers. If you would like to copy other cost centers from another general ledgeraccount, you can click Copy and select the general ledger account that has the same category structure. For more details on howto create and maintain the cost center and cost unit, see 5.2 Cost Centers and Cost Units Management - Maintaining cost unitsand Maintaining cost centers.

Budgets ttabYou can manage budgets for the general ledger account by year, budget scenario, warehouse, item, cost center, cost unit,project, or resource. From this tab, you can also display the actual and allocated budgets by year, cost center, or cost unit.

For more details on budget allocation, and how to create and maintain budgets, see 5.1 Financial Budgeting and 2.3 BudgetingProjects in the Project user guide.

Cost ccenters ttabAt this tab, you can select the available search criteria to display the allocated and actual budget by cost centers and budget scenario.

Cost uunits ttabSimilar to the Cost ccenters tab, you can select the available search criteria to display the allocated and actual budget by costunits and budget scenario.

Warehouse ttabTo display the allocated and actual budget by warehouse and budget scenario, select this tab after you have defined therequired search criteria.

Extra ttabHere, you can define where the general ledger account will appear in the Cash fflow statement. Select the available optionsfound at Presentation so that you can categorize the general ledger account in the Balance/PL reports.

You can also define additional information such as free fields and the default tax code for the general ledger account.

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Log ttabWhen you select this tab, information on what has been modified for the general ledger account is displayed. You can also findthe person who modified the data with the date and time of modifications.

Editing general ledgers

Once you have entered a general ledger, you may need to make changes such as adding or removing the corporate generalledger number. You may also need to edit the description or add notes to the general ledger.

To eedit ggeneral lledgers:

1. Go to Finance/General lledger/Chart oof GG/L's, and select the general ledger to be edited.2. Click Open.3. Make the necessary changes to the general ledger and click Save.

Deleting general ledgers

It is possible to delete a general ledger. When you do this, the general ledger is deleted and cannot be retrieved from the system.General ledgers that are linked to transactions cannot be deleted. In addition, a general ledger linked to other master datacannot be deleted. For example, the accounts receivable account cannot be deleted when it is linked to a sales journal atSystem/Finance/Journals. You will see the Delete mmaster ddata screen whenever the general ledgers are linked. This screendisplays the data linked to the general ledger.

To ddelete aa ggeneral lledger:

1. Go to Finance/General lledger/Chart oof GG/L's. You will see the Chart oof GG/L's screen.2. Select the general ledger to be deleted.3. Click Delete, and a message requesting you to reconfirm the deletion will be displayed. 4. Click Yes to delete the selected general ledger or No to cancel.5. Click Close to exit.

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Setting up general ledger settings

With General lledger ssettings, you set up the default or global settings/value that is used throughout the system.

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To sset uup ggeneral lledger ssettings:

1. Go to System/General/Settings, and click General lledger settings under the Settings section. You will see the Generalledger ssettings screen.

2. Under the Entry section, select the Print pposting rreport iimmediately check box. This means that some posting reports areprinted the moment you process the journal entries. For example, there is the general ledger posting report,debtor/creditors posting report, and cost center posting report. If you do not select the Print posting report immediately,you are able to print the posting reports after you process the journal entries.

3. Under the Default section, type or select the payment conditions for debtors and creditors in Payment ccondition: DDebtor andPayment ccondition: CCreditor. The payment condition that you define for debtors and creditors appears in the sales journaland purchase journal respectively. For more details on how to create payment conditions, see 1.6 Payment Conditions.

4. Under the Aging section, type the default days for the three categories for debtor and creditor. The aging that you defineappears in the Aging aanalysis ddebtors, Receivables, and Debtor ccard (for debtor), and Aging aanalysis ccreditors, Payables,and Creditor ccard (for creditor). You can change the aging days in the aging reports if you want the aging to be calculatedin different days.

5. Under the General section, select the Invoices // iitems tto bbe rreceived pper iitem check box if you want to use different invoicesor items to be received general ledger accounts for different items or item groups. By default, the check box is not selected,which means, only one invoices or items to be received general ledger account is used for all the items and item groups.This functionality is available if you have the E-PPurchase module.

6. Under the Matching: CCash fflow section, select the required criteria to determine how your administration is going to handlethe offset account when there is a mismatch in the debtor/creditor accounts, receipt/payment, and invoices. There are threeavailable options which include Never, Always, and Only iin oopen pperiods. If you select Never, the system will never overwritethe offset account. If you select Always, the system will always overwrite the offset account if there is a mismatch found inopen or closed periods. If you select Only iin oopen periods, the system will overwrite the offset account only if mismatchingis found in open periods.

7. Meanwhile in the Matching: IInvoices section, select the Create ooffset eentry check box to allow the system to create offset entrylines during the matching process when invoices and/or credit notes are matched using different general ledger accounts.

8. Click Save, and the message "Changes will only take affect after restarting the software" appears. Click OK.

Note: Under the VAT, Entry, Year-eend cclosing pprocess, General lledger, Journal, and Default sections, there are other settingswhich you can select for Financial when you set up the general ledger settings.

VAT

Disable TTaxSelect this check box if you do not want to use tax in your administration. This function is automatically disabled when there aretransactions involving tax that has been recorded.

Flexible VVAT ssystemSelect this check box if you want to use a flexible value-added tax (VAT) system that allows you to use the VAT invoice systemas well as the VAT cash system when declaring VAT. If you have selected this check box, you can define a VAT code to be basedon the VAT ccash ssystem when creating or maintaining a VAT code.

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VAT ttypeWhen you select Invoice ssystem, this means that the tax you pay or claim is based on the entries made in the purchase andsales invoices within a certain period. Alternatively, you select Cash ssystem to declare the tax when you receive or makepayment for sales or purchase invoices.

Use sseparate GGL tto cclose VVAT bbalancesSelect this check box if you want to use a separate general ledger to close the VAT to pay and VAT to claim general ledgeraccounts. Once you have selected the check box, you can select the general ledger to be used for closing the VAT balances atGL tto rreport VVAT.

GL tto rreport VVATType or select the general ledger account to be used to report VAT. This field is enabled once you have selected the Use sseparateGL tto cclose VVAT bbalances check box.

Use ttax mmoduleSelect this check box to enable the usage of tax schedule. Show: MMaximum nnumber oof ttax ccodes is enabled once you select theUse ttax mmodule check box.

Show: MMaximum nnumber oof ttax ccodes Type the maximum number of tax codes you intend to link to a transaction line in any of the journal entries. You can have amaximum of five codes. These tax codes are used to develop the tax schedule.

Non-ddeductible VVATSelect this check box to enable the non-deductible VAT functionality for purchase journal entries. Non-deductible VAT refers tothe VAT amount that you cannot claim from the tax authority.

Entry

Unique GGL pper bbank/cash jjournalYou can select this check box if your company requires a unique link of one general ledger account to one bank/cash journal.This means that the bank/cash account you define at Account number in the Journals screen (at System/Finance/Journalssection) for a bank/cash journal cannot be shared.

Enforce bbalancing oon ccost ccenter Select this check box to make sure that there are cost center balancing in the entry applications either when you enter or processthe transactions in the journal entries. This setup applies to all the journal transactions.

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Entry nnumber/ rreporting ddate llinkSelect this check box if you want the entry number to be based on the reporting date. This setup applies to all the journaltransactions. For example, your company received a purchase invoice dated December 23, 2005 and you recorded the invoiceon January 16, 2006. The date at Date in the purchase journal will be the entry date, which is December 23, 2005 and thereporting date at Reporting ddate will be January 16, 2006. Once you select the Entry nnumber/ rreporting ddate llink check box, thesystem will assign the entry number based on the January 16, 2006 reporting date.

Check AAnalytical vvaluesYou can select a default option whether to check the analytical values during the entry level or the processing level. When youselect Entry, the system will check the analytical values when you create a journal entry or make an XML import. Alternatively,you select Processing for the system to check the analytical values during the final processing of the journal entry atFinance/Entries/Process.

Year-end closing process

Process bbalance ssheetSelect this check box if you want to implement the year-end closing process for the balance sheet general ledger accounts.

Closing ooffset BB/S aaccountOnce you have selected the Process bbalance ssheet check box, this field will be enabled. Type or select the general ledgeraccount that will be used as the opening and closing balance offset general ledger account.

General ledger

Payment ddifferencesWhen you click Details (next to Payment ddifference), you will see the Details screen. Here, you can define the defaultsales/purchase discounts, sales/purchase payment differences, credit surcharge for sales/purchase, and financial chargesaccounts. These accounts are used by the system to write-off outstanding payment for purchased/sold items. The write-offaccounts are used when you match entries at Finance/Entries/Bank/Cash.

For example, when you select an account for the sales discount, discounts are given to debtors when they have fulfilled theterms set by your company. Assuming that the debtor pays you within 14 days and a 3% discount is given, therefore, thediscounted amount will be booked to the sales discount account.

Note: The accounts as mentioned before are all mandatory.

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Calculation ddifferencesYou can type or select a default general ledger account for calculation differences. When there are differences in amount at thejournal header as compared to the journal sub lines, a message suggesting two ways of handling this issue is displayed onceyou save the financial transaction.

One would be for the system to correct the amount automatically while the other will suggest to write-off the differences at thedefault general ledger account for calculation differences. Such scenario is applicable when there are calculation differences atFinance/Entries/Purchase and Finance/Entries/Sales.

Accruals aand pprepaymentsType or select a default accrual and prepayment account that will be used at Finance/Entries/Purchase. This general ledgeraccount is automatically used by the system when the Reporting ddate created at purchase journal header is different comparedto the Reporting ddate at purchase journal sub line. Such scenario may happen when you have prepayments for office rental.

Journal

Sales iinvoiceType or select the journal that is used to record the financial entries when you print the sales invoices with the E-OOrder orE-IInvoice module.

Cash jjournal ((POS/Direct IInvoices)Type or select the journal that is used to record the financial entries when you print POS or direct invoices with the E-PPOS orE-IInvoice module.

Default

Cost ccenter aallocation mmethodSelect this to define the allocation method. You can allocate the general ledger accounts with an upper or lower cost center. Formore details on how to allocate the cost center, see 5.2 Cost Centers and Cost Units Management - Allocating cost.

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1.4 Journals

Creating journals

As different types of financial transactions are registered in different journals, you need to set up the necessary journals for yourcompany. All transactions entered in the system are registered to the general ledger through journals. This section describeshow you can create and maintain journals in Exact GGlobe. Journals are used to create the daily transactions of your companysuch as sales, purchase, Giro, cash, bank, and general journal entries. You create journals in order for the system to link andpost the entered transactions to the correct general ledger accounts.

Important: If you do not create journals for the respective journal type such as sales, purchase, Giro, cash, bank and, generaljournal, you will not be able to create any entries at the Finance/Entries section.

To sset uup jjournals:

1. Go to System/Finance/Journals, and click New. You will see the Journals screen.2. At Journal nnumber and Description, type a unique journal number and description respectively. These are mandatory.3. Type an abbreviation for the created journal at Abbreviation. Abbreviation is displayed in reports for information

purposes. For example, you can find this information at Finance/Entries/Reports/Closed periods. You also need to definea unique abbreviation.

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4. Select the journal type at Journal ttype.5. Under the General tab, type or select a general ledger account number and unallocated general ledger account number at

Account nnumber and Unallocated respectively. These are mandatory. Unallocated is enabled only when Bank, Cash orGiro is selected at Journal ttype. Whenever the journal entry is not allocated to a debtor or creditor, the system will use theunallocated general ledger account. As for Account nnumber, you should select a general ledger account that is related tothe journal type. For example, when you create a bank journal, you should then select a bank general ledger account.When you create general journals, you should link a suspense account at Account NNumber.

6. Under the Currency section, type or select a currency at Currency ccode. You may also want to select the Variable ccurrencycheck box if the created journal involves multiple currencies. The Variable eexchange rrate check box is enabled once youselect the Variable ccurrency check box. Select the Variable eexchange rrate check box to modify the exchange rate when youcreate the journal entries. The variable exchange rate is only activated when Variable exchange rate check box is alsoselected for the currency that you set at System/General/Countries/Currencies.

7. Click Save to save the journal. If you click Close instead, a message "Save changes?" will be displayed. Click Yes to savethe changes and to exit.

Note: Under the Options section, there are other settings which you can select when you create journals.

Options

Exit aautomaticallySelect this check box for the system to automatically exit from bank, sales, purchase, and general journals once you havecreated the financial transactions and the amount at Difference under the Information ppanel is zero.

Block ooutstanding iitemSelect this check box for the system to block the payment terms you have defined when you create financial transactions atpurchase, sales, or general journals.

Intercompany ttransactionsSelect this check box to allow intercompany transactions to be recorded in the general journal. An example of an intercompanytransaction is a parent company buying flight tickets on behalf of a subsidiary and the expense is transferred to the subsidiary.This check box is available only if you create a new general journal. Intercompany transactions cannot be booked into a generaljournal with existing transactions; hence the check box is disabled. This function is not available for the other types of journal.

Note: Whenever you create a new journal, the system will automatically create the entry numbers for all the financial years thatyou have set up earlier. This is found at the Number tab and there are some options which you can use when you create ajournal. The following are the explanation on the usage of each option found in the Number tab:

Change When you select an entry number by the financial year under the Financial column, click Change to modify the entry numberunder the Entry nnumber column.

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New eentry :: BBlock eentry nnumberThe system will not allow you to change the entry number to the following number when you select this check box. Forbank/cash journal, the entry number is displayed at Statement nnumber under the journal header. As for purchase, sales, andgeneral journal, the entry number is displayed at EntryNo under the journal header.

Only system-generated entry numbers can be used when you create financial transactions for journals that have this checkbox selected.

Editing journals

Once a journal has been created, it is still possible to make certain changes to the entry such as the description, abbreviation,account numbers, currency code, and more.

To eedit jjournals:

1. Go to System/Finance/Journals, and select the journal to be edited.2. Click Open.3. Make the necessary changes to the journal and click Save, and then Close.

Deleting journals

It is possible to delete a journal. Once you do this, the journal is permanently removed from the system. Only journals that arelinked to transactions cannot be deleted.

To ddelete aa jjournal:

1. Go to System/Finance/Journals. Select the journal to be deleted.2. Click Delete, and a message requesting you to reconfirm the deletion will be displayed.3. Click Yes to delete the selected journal or No to cancel.4. Click Close to exit.

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1.5 Accounts Receivable and Accounts Payable

Accounts receivable are used to enter accounting transactions for debtors. Debtors are the company's customers. Accountspayable, on the other hand, are for creditors or the company's suppliers. The respective types of accounts are created andmaintained at Finance/Accounts rreceivable/Maintain and Finance/Accounts ppayable/Maintain.

Creating accounts receivable

To ccreate aan aaccount rreceivable uunder tthe BBasics ttab:

1. Go to Finance/Accounts rreceivable/Maintain, and click New. You will see the Accounts - DDebtors screen. In the examplegiven, the screen is in the Simple mode. The mode whether Simple or Advanced, is based on the recent mode in whichyou have opened a debtor account.

2. Under the Basics tab, type a debtor name at Name. 3. Type a unique number for the debtor at Code. If you have defined the range of numbers under the Accounts section at

Number ssettings, you will not have to create a debtor number as the system will automatically generate one.4. Type or select an account classification for the debtor at Classification. For example, you can define whether the debtor

belongs to a large- or medium-sized company. Classification is used as one of the criteria for reports such as Aginganalysis ddebtors, Outstanding iitems ddebtors, Receivables hhistory, and more. For example, you can use the report toanalyze the value of relationship between the debtor and your company.

5. Under the General section, select the address type for the debtor at Address types.

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6. Type or select the country, company address, postcode, province, phone and fax number of the debtor at Country,Address 11/2/3, City // SState, Postcode, County, Phone and Fax respectively. After you have entered the address, you canview the map or the route to the location by clicking Map or Route.

7. Continue to "To create an account receivable under the Financial tab".

Note: There are some other fields which you can use after you create an account receivable. The following are the explanationon the usage of each field found under the Basics tab:

StatusFrom the available list, you can define the status of the debtor by identifying whether they are active, blocked, inactive, pilot,reference or passive. With status, you can determine whether the debtor can or cannot be used in the financial transactions.

DiscountType a default discount (in percentage) offered to the debtor at Discount. The discount that you defined is applied only for salesorder and sales invoice entries. It will appear at each entry line of the Disc. %% ((Extra) column under the Sales oorder llines and Salesinvoice llines sections. You can make use of this discount if there is additional discount that you intend to give to the debtor.

Contact

Under this section, you can create the main contact person that your company can be in touch with. You can create the title,name, job title, and job description of the contact person. You can also create the direct telephone number and e-mail addressof the contact person.

Info

AttachmentClick to display the Accounts - AAttachments screen. You can view the documents that are attached to the debtor. At the sametime, you can open and edit a selected document. You can also create and attach new documents for the debtor.

The documents displayed in the Accounts - AAttachments screen include the sales quotation, sales invoice, delivery note, and more.

Show nnotes uupon eentrySelect this check box for the system to display the Notes screen whenever you create the financial transactions and a debtor atthe bank/cash, sales or general journals is selected. By default, the system will display the remarks you created at Notes.

NotesAt Notes, you can type additional remarks for the debtor whenever there are other notes that need to be created. Select Shownotes uupon eentry check box so that the system will display the notes that you typed whenever you create the financialtransactions at the bank/cash, sales, or general journals.

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Note: In the Financial tab, there are some settings that will affect other modules such as Purchase, Sales OOrder, and Invoice.

To ccreate aan aaccount rreceivable uunder tthe FFinancial ttab:

1. Under General, type or select a currency at Currency. 2. At Offset aaccount, type or select a revenue account for the debtor. The selected revenue account is automatically

displayed at the sales journal sub line whenever you create the sales journal transactions at the Make ssales eentry screen.3. Type or select a general ledger account in Debtor aaccount. Normally, the accounts receivable (AR) account is selected. The

system will only allow one AR account for the debtor when a sales transaction is created. If you have multiple AR accountsthat need to be used, leave Debtor aaccount blank.

4. At Payment ccondition, type or select a default payment condition. The selected payment condition is used in sales orgeneral journal transactions. This also applies to recurring journals. For more details on how to create paymentconditions, see 1.6 Payment Conditions.

5. Type or select a default bank account at Bank aaccount. The selected bank account is displayed and used in all the journaltransactions. This also applies to all the recurring journals. This is the bank account of the debtor. You can make paymentto this bank account, if required.

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6. Type a credit limit for the debtor at Credit lline. This will be the maximum amount allowed for the debtor to be in debt withyour company. For example, if the credit line entered is 4000 and you entered a sales invoice of 4500, the system willprompt you that the debtor has exceeded the limit by 500. The system will check the credit limit against the Exceedingpermitted check box in invoice settings and display a message. For more details, see 1.1 Invoice Settings in the Invoiceuser guide.

7. Under Reminders, select the Send rreminders check box to allow reminders to be sent to the debtor. Whenever the lastreminder printout is sent to the debtor, the system will automatically update the dates at Last rreminder.

8. To categorize the type of scenario the debtor belongs to, select the available option at Scenario. You can make use of thisoption to categorize the Reminder cchecklist and Reminder lletters. For more details on how to generate reminder checklistand print reminder letters, see 3.4 Credit Management.

9. Click Close in the Accounts-DDebtors-SSimple screen to save the account receivable and to exit. A message "Save the newdata?" will be displayed. Click Yes to save the changes.

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To ccreate aan aaccount rreceivable uunder tthe CContact ttab:

Under the Contact tab, you can create several contacts for your debtor. This is useful if your debtor is a large corporation as itallows you to manage multiple contacts in the corporation. You can save the direct telephone numbers of each contact as wellas their personal e-mail addresses or fax numbers. If a particular contact has placed an order, you can link the contact to thatorder. This way, you will know immediately who to speak to if any changes need to be made.

1. Under the Contacts pperson section, select the status of contact persons at Status to view all the contact persons of thisdebtor according to the defined status. There are three options which include All, Active, or Inactive.

2. By default, the details of the contact person you have entered in the Contact section under the Basics tab will bedisplayed as the main contact person of this debtor after you have clicked Save to save the new debtor entry. To add newcontact persons for this debtor, click New. Type the details of the contact person such as the contact name,telephone number, fax number, and e-mail address. Next, click Save. To edit the details of an existing contact person,select the contact person and then click Edit. Change the details and then click Save. To delete a contact person,select the contact person and click Delete. You can only delete a contact person who is not the main contact person ofthe debtor.

3. Depending on the contact person you select in the Contact ppersons section, the Addresses section will display theaddresses of the contact person. Click New to insert a new address for the contact person, Edit to edit theselected address, or Delete to remove the selected address.

4. Click Save to save the information of the contact details.

Under the Extra tab, you can enter additional information about the debtor in the extra fields. In the following example, thereare four extra fields that allow you to type the account manager of this debtor, the sector which the debtor is operating itsbusiness in, the size of the debtor company, as well as the next visitation date for this debtor. Before you can use the extrafields, you must define the extra fields in System/General/Free ffields.

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To ccreate aan aaccount rreceivable uunder tthe EExtra ttab:

1. Go to System/General/Free ffields. At Table, select Accounts to define the free fields for your accounts.2. Under the Column nname column, select textfield1, and then click Open. At Customize, type the name for this extra field.

Based on the example shown above, you type "Account Manager". Next, click Save. At this step, you are naming the extrafield. Follow this step to define other extra fields. The names of the extra fields will appear under the Extra tab atFinance/Accounts rreceivable/Maintain when you click Open to view the details of an existing debtor or New to create anew debtor entry.

3. After you have defined the extra fields, go to Finance/Accounts rreceivable/Maintain and click New.4. Type the details of the new debtor under the Basics, Contact, and Financial tabs. 5. Under the Extra tab, type the additional information under the Extra section in the extra fields which you have defined

earlier, and click Save. 6. At anytime you want to change the name of the extra fields, click Maintain: FFree ffields and type the new name for the

extra field at Customize. Click Save to save the new name for the extra field.

Editing accounts receivable

Once an account receivable has been created, it is still possible to make certain changes to the entry such as changing thestatus, adding notes, or changing the discounts.

To eedit aaccounts rreceivable:

1. Go to Finance/Accounts rreceivable/Maintain, and select the account receivable to be edited.2. Click Open.3. Make the necessary changes to the account receivable and click Save.

Deleting accounts receivable

It is possible to delete an account receivable. Once you do this, the account receivable is permanently removed from the system.Only account receivables that are linked to transactions cannot be deleted.

To ddelete aan aaccount rreceivable:

1. Go to Finance/Accounts rreceivable/Maintain. Select the account receivable to be deleted.2. Click Delete, and a message requesting you to reconfirm the deletion will be displayed. 3. Click Yes to delete the selected account receivable or No to cancel.4. Click Close to exit.

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Creating accounts payable

To ccreate aan aaccount ppayable uunder tthe BBasics ttab:

1. Go to Finance/Accounts ppayable/Maintain, and click New. You will see the Accounts - CCreditors screen. In the examplegiven, the screen is in the Simple mode. The mode whether Simple or Advanced, is based on the recent mode in which youhave opened a creditor account.

2. Under the Basics tab, type a creditor name at Name. 3. Type a unique number for the creditor at Code. If you have defined the range of numbers under the Accounts section at

Number ssettings, you will not have to create a creditor number as the system will automatically generate one.4. Type or select an account classification for the creditor at Classification. For example, you can define whether the creditor

belongs to a large- or medium-sized company. Classification is used as one of the criteria for reports such as Aging aanalysisCreditors, Outstanding iitems ccreditors, Payables hhistory, and more. For example, you can use the report to analyze the valueof the relationship between the creditor and your company.

5. Under the General section, select the address type for the creditor at Address ttypes.6. Type or select the country, company address, postcode, province, phone and fax number of the creditor at Country, Address

1/2/3, City // SState, Postcode, County, Phone, and Fax respectively. After you have entered the address, you can view themap or the route to the location by clicking Map or Route.

7. Continue to "To create an account payable under the Financial tab".

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Note: There is some other fields which you can use after you create an account payable. The following are the explanation onthe usage of each field found under the Basics tab:

StatusFrom the available lists, you can define the status of the creditor by identifying whether they are active, blocked, inactive, pilot,reference or passive. With status, you can determine whether the creditor can or cannot be used in the financial transactions.

Contact

Under this section, you can create the main contact person that your company can be in touch with. You can create the title,name, job title, and job description of the contact person. You can also create the direct telephone number and e-mail addressof the contact person.

Info

AttachmentClick to display the Accounts - AAttachments screen. You can view the documents that are attached to the creditor. At the sametime, you can open and edit a selected document. You can also create and attach new documents for the creditor.

The documents displayed in the Accounts - AAttachments screen include the purchase quotation, purchase order, purchaseinvoice, receipt, and more.

Show nnotes uupon eentrySelect this check box for the system to display the Notes screen whenever you create the financial transactions and a creditorat the bank/cash, purchase or general journals is selected. By default, the system will display the remarks you created at Notes.

NotesAt Notes, you can type additional remarks for the creditor whenever there are other notes that need to be created. Select Shownotes uupon eentry check box so that the system will display the notes that you typed whenever you create the financialtransactions at the bank/cash, purchase or general journals.

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Note: In the Financial tab, there are some settings that will affect other modules such as Purchase, Sales OOrder, and Invoice.

To ccreate aan aaccount ppayable uunder tthe FFinancial ttab:

1. Under General, type or select a currency in Currency.2. Type or select a general ledger account in Creditor aaccount. Normally, the accounts payable (AP) account is selected. The

system will only allow one AP account for the creditor when a purchase transaction is created. If you have multiple APaccounts that need to be used, you should leave Creditor aaccount blank.

3. Type or select a default bank account at Bank aaccount. The selected bank account is displayed and used in all the journaltransactions. This also applies to all the recurring journals.

4. Type a credit limit for the creditor at Credit lline. This will be the maximum amount allowed for your company to be in debtwith a creditor.

5. At Payment ccondition, type or select a default payment condition. The selected payment condition is used in purchase orgeneral journal transactions. This also applies to recurring journals. For more details on how to create paymentconditions, see 1.6 Payment Conditions.

6. Click Close in the Accounts-CCreditors-SSimple screen to save the account payable and to exit. A message "Save the newdata?" will be displayed. Click Yes to save the changes.

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Note: There are some other fields which you can use after you create an account payable. The following are the explanation onthe usage of each field found under the Financial tab:

General

Offset aaccountType or select a purchase general ledger account for the creditor. The selected purchase general ledger account is automaticallydisplayed at the purchase journal sub line whenever you create the purchase journal transactions at the Make ppurchase eentry screen.

Logistics

RepresentativeType or select a resource at Representative to specify a buyer or person who will be in charge of this creditor account.

Under the Contact tab, you can create several contacts for your creditor. This is useful if your creditor is a large corporation as itallows you to manage multiple contacts in the corporation. You can save the direct telephone numbers of each contact as wellas their personal e-mail addresses or fax numbers. If you have placed an order with a particular contact, you can link the contactto this order. This way, you will know immediately who to speak to if you want to make any changes.

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To ccreate aan aaccount ppayable uunder tthe CContact ttab:

1. Under the Contacts pperson section, select the status of contact persons at Status to view all the contact persons of thiscreditor according to the defined status. There are three options which include All, Active, or Inactive.

2. By default, the details of the contact person you have entered in the Contact section under the Basics tab will bedisplayed as the main contact person of this creditor after you have clicked Save to save the new creditor entry. To addnew contact persons for this creditor, click New. Type the details of the contact person such as the contact name,telephone number, fax number, e-mail address, and then click Save. To edit the details of an existing contact person,select the contact person and then click Edit. Change the details and then click Save. To delete a contact person,select the contact person and click Delete. You can only delete a contact person who is not the main contact personof the creditor.

3. Depending on the contact person you select in the Contact ppersons section, the Addresses section will display theaddresses of the contact person. Click New to insert a new address for the contact person, Edit to edit theselected address, or Delete to remove the selected address.

4. Click Save to save the information of the contact details.

Under the Extra tab, you can enter additional information about the creditor in the extra fields. In the following example, thereare four extra fields that allow you to type the account manager of this creditor, the sector which the creditor is operating itsbusiness in, the size of the creditor company, as well as the next visit date for this creditor. Before you can use the extra fields,you must define the extra fields in System/General/Free ffields.

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To ccreate aan aaccount rreceivable uunder tthe EExtra ttab:

1. Go to System/General/Free ffields. At Table, select Accounts to define the free fields for your accounts.2. Under the Column nname column, select textfield1, and then click Open. At Customize, type the name for this extra field.

Based on the example shown above, you type "Account Manager". Next, click Save. At this step, you are naming the extrafield. Follow this step to define other extra fields. The names of the extra fields will appear under the Extra tab atFinance/Accounts rreceivable/Maintain when you click Open to view the details of an existing debtor or New to create anew debtor entry.

3. After you have defined the extra fields, go to Finance/Accounts rreceivable/Maintain and click New.4. Type the details of the new debtor under the Basics, Contact, and Financial tabs. 5. Under the Extra tab, type the additional information under the Extra section in the extra fields which you have defined

earlier, and click Save. 6. At anytime you want to change the name of the extra fields, click Maintain: FFree ffields and type the new name for the

extra field at Customize. Click Save to save the new name for the extra field.

Editing accounts payable

Once an account payable has been created, it is still possible to make certain changes to the entry such as changing the status,adding notes, or changing the payment condition of the account payable.

To eedit aaccounts ppayable:

1. Go to Finance/Accounts ppayable/Maintain, and select the account payable to be edited.2. Click Open.3. Make the necessary changes to the account payable and click Save.

Deleting accounts payable

It is possible to delete an account payable. Once you do this, the account payable is permanently removed from the system.Only account payables that are linked to transactions cannot be deleted.

To ddelete aan aaccount ppayable:

1. Go to Finance/Accounts ppayable/Maintain. Select the account payable to be deleted.2. Click Delete, and a requesting you to reconfirm the deletion will be displayed. 3. Click Yes to delete the selected account payable or No to cancel.4. Click Close to exit.

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1.6 Payment Conditions

Exact GGlobe allows you to create and maintain payment conditions to inform your debtors of how and when they should settlethe payment stated in the invoices. At the same time, payment conditions are also applicable for your company when youreceive the terms from the creditors.

Payment conditions are terms that define the amount of surcharges imposed for late payments, the rates of discounts given forearly settlements, and also the period to settle the payment.

Payment conditions can be defined during the sales or purchase entry at the sales or purchase journals, or even at the invoiceentry. You can also define the default payment condition for your debtors or creditors so that the payment condition specifiedwill be automatically used when creating sales, purchase or invoices for the debtor or creditor. However, you can still changethe payment condition during the sales, purchase or invoice entry. For more details, see 2.3 Purchase Financial Entries, 2.4Sales Financial Entries, and 2.1 Creating and Maintaining Invoices in the Invoice user guide.

The following topics are relevant to this section:

• Creating, editing, and deleting payment conditions

Creating payment conditions

By default, a payment condition is pre-defined by the system. You can create new payment conditions atSystem/General/Countries/Payment cconditions. Click New to display the Payment cconditions screen as follows. Type theinformation as described and then click Save to save the new payment condition.

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Payment cconditionType a unique code (two alphanumeric characters) for the payment condition. This information is mandatory. Once you havesaved the payment condition, the payment condition code cannot be changed.

DescriptionType the description of the payment code. This information is mandatory. The description is visible when searching for paymentconditions at System/General/Countries/Payment cconditions.

Due ddate ccalculation ttypeSelect one from the following six options to specify the due date calculation type for the payment condition. To enable thecalculation of due date, you must fill in certain details in the Details box displayed when you click Add under the Terms tab.

• Date ++ ppayment ttermConsider the invoice date as May 16, 2006. In the Details box, Percentage is set to 100 and Number oof ddays is set to 10.

Calculation:Add 10 days to May 16, 2006.May 16, 2006 + 10 days = May 26, 2006.

The due date for payment is May 26, 2006.

• Date ++ ppayment tterm ->> eend oof tthe mmonth ->> dday oof tthe mmonthConsider the invoice date as May 16, 2006. In the Details box, Number oof ddays is set to 8 while Days tto eend oof mmonth isset to 10.

Calculation:1. Add 8 days to the invoice date.

May 16, 2006 + 8 days = May 24, 2006

2. End of the month = May 31, 2006

3. Add 10 days to the end of the month.May 31, 2006 + 10 days = June 10, 2006

The due date for payment will be June, 10 2006.

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• Date ++ ppayment tterm ->> eend oof tthe nnext mmonth ->> dday oof tthe mmonthConsider the invoice date as May 16, 2006. In the Details box, Number oof ddays is set to 8 while Days tto nnext mmonth is setto 10.

Calculation:1. Add 8 days to the invoice date.

May 16, 2006 + 8 days = May 24, 2006

2. End of the next month = June 30, 2006

3. Add 10 days to the result.June 30, 2006 + 10 days = July 10, 2006

The due date for payment will be July 10, 2006.

• Date ++ ppayment tterm ->> xx.end oof tthe mmonth ->> dday oof tthe mmonthConsider the invoice date as May 16, 2006. In the Details box, Number oof ddays to invoice date is set to 10, Number ooftimes eend oof mmonth is set to 3, and Period ddue ddate is set to 2 days.

Calculation:1. Add 10 days to the invoice date.

May 16, 2006 + 10 days = May 26, 2006

2. 3 times end of the month. First time end of the month from May 26, 2006 = May 31, 2006Second time end of the month = June 30, 2006

Third time end of the month = July 31, 2006

3. Add 2 days to the result.July 31, 2006 + 2 days = August 2, 2006

The due date for payment will be August 2, 2006.

• Date ++ ppayment tterm ((in mmonths)Consider the invoice date as May 16, 2006. In the Details box, Months tto ddue ddate is set to 4.

Calculation: Add 4 months to the invoice date.May 16, 2006 + 4 months = September 16, 2006

The due date for payment will be September 16, 2006.

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• Date ->> eend oof tthe mmonth ++ xx mmonthsConsider the invoice date as May 16, 2006. In the Details box, Months tto ddue ddate is set to 2.

Calculation:1. End of the month from the invoice date = May 31, 2006

2. Add 2 months to the result.May 31, 2006 + 2 months = July 31, 2006

The due date for payment will be July 31, 2006.

Discount/SurchargeSelect Settlement ddiscount or Credit ssurcharge to indicate if the payment condition refers to a settlement discount or a creditsurcharge. A settlement discount is a discount given if your debtor or your company pays to the creditor within the stated periodof time, while a credit surcharge is additional payment charged to your debtor or company for late payment. Type the percentageof the credit surcharge at the following Perc. field.

Note: Only the first Perc. field will be enabled for credit surcharge.

Number oof ddays: DDiscount 11 and Perc.Type the number of days which the settlement discount is given if the payment is made within the specified number of days atNumber oof ddays: DDiscount 11. At Perc., type the percentage of discount to be given if payment is made within the specifiednumber of days. It is possible to offer multiple discounts in one payment condition. This is a common business practice forcompanies in the European countries to encourage early payment as the earlier the customer pays, the bigger the discount hewill get. Hence, the software supports as many as three different discounts to be defined in each payment condition. Forexample, if you want to offer a discount of 10% upon payment settlement within 10 days, 5% upon payment settlement within15 days, and 2% upon payment settlement within 20 days, you can type "10" at Number oof ddays: DDiscount 11 and thecorresponding discount of "10%" at Perc.. This is followed by "15" at Number oof ddays: DDiscount 22 and "5%" at Perc., and "20"at Number oof ddays: DDiscount 33 and its corresponding discount of 2% at Perc.

Note: You can fill in the number of days for the settlement discount only.

Item ggroupType or select the item group that the payment condition is linked to. This information is mandatory because a paymentcondition is a rule item and it is mandatory to fill in the item group when creating rule items. You can create item groups atSystem/Logistics/Item ggroups.

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Terms tab

Under the Terms tab, details of payment terms including payment period, percentage of discount, payment method, currencycode, and cash instrument used are displayed once you have added a payment term.

AddClick this to add a new payment term. The Details box will be displayed. You can specify the details of the payment term suchas the percentage of payment to be made or percentage of discounts, payment period, cash instrument to be used, and thepayment method.

PercentageType the percentage of the total amount of payment that needs to be settled within the defined Number oof ddays from theinvoice date.

Number oof ddaysType the number of days to settle the payment.

Cash iinstrumentType or select the cash instrument or bank account that the payment is associated to. For more details, see 2.1 CashInstruments in the Cash FFlow user guide.

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Payment mmethodSelect the payment method from the six options available:

• On ccredit - This refers to the approval of the seller to allow the buyer to make future payment for the delivered goods. Thepayment method used by the buyers in the future usually refers to electronic fund transfer (EFT).

• Cash - This is a form of payment that is made by cash the moment the goods are delivered.• Cheque - A cheque is a document that instructs the bank to pay a specified amount of money (from the payer's account)

to the payee's account.• Letter oof ccredit - A letter of credit is a written document requested by the buyer from a bank. This document acts as a form

of guarantee to the seller that the correct amount of payment will be received on time. If you select this option, you canset the maturity days of the letter of credit to 0, 30, 60, 90, 120, or 180 days.

• Collection - Collection is a method used to instruct the bank to make collection of the payment from the buyers on behalfof the seller.

• Factoring - Factoring is a practice that allows a seller to sell the unpaid invoices (of reputable buyers) to factoringcompanies in exchange for immediate cash. The buyers will then make payment for the delivered goods to the factoringcompanies instead of to the seller.

Note: Some boxes displayed in the Details box will differ depending on the selection in the Due ddate ccalculation ttype box. Theoption selected will also depends on the settings defined at System/General/Settings, under Bank ssettings. For more details,see 1.1 System Settings - Bank settings in the Cash FFlow user guide.

EditClick this to edit the details of the selected payment term.

Note: Edit is enabled only if you have selected a payment term under the Terms tab.

DeleteClick this to delete the selected payment term.

Note: Delete is enabled only if you have selected a payment term under the Terms tab.

Editing payment conditions

Once a payment condition has been created, it is possible to make certain changes to the payment conditions such as changingof the description, number of days, or percentage.

To eedit tthe ppayment cconditions:

1. Go to System/General/Countries/Payment cconditions, select the payment condition to be edited, and then click Open.2. In the Payment cconditions screen, make the necessary changes to the payment condition, and then click Save.3. Click Close to exit.

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Deleting payment conditions

You can also delete the payment conditions created, provided that the payment conditions you want to delete are not in use orlinked to any invoices that have not been processed.

To ddelete tthe ppayment cconditions:

1. Go to System/General/Countries/Payment cconditions, select the payment condition to be edited, and then click Delete. Awarning message will be displayed to confirm the deletion of the payment condition.

2. Click OK to continue with the deletion. The Delete mmaster ddata will be displayed to indicate whether the invoice codeselected has been deleted or not.

3. Click Close to exit.

Chapter 2 | Financial Accounting and Reporting

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Opening Balance Entries

Purchase Financial Entries

General Journal Entries

General Ledger Card

Bank/Cash Financial Entries

Sales Financial Entries

Recurring Entries

Revaluation

FINANCIAL ACCOUNTING AND REPORTING

Processing Financial Entries

Voiding Entries

Financial Statements

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In Exact GGlobe, financial accounting and reporting allows you to create opening balance entries for your company. You can alsocreate and maintain standard and recurring financial transactions in the general, purchase, sales, and bank/cash journals.

After creating the necessary financial transactions, you can then revalue the financial transactions, if required, for generalledger, invoices, and bank/cash entries. Once all previous transactions are created, you can process the financial transactionswhich are normally done on a month-end basis.

At the same time, you can also use the general ledger card to display all financial transactions by the specific general ledgeraccount. Whenever the processed financial transactions are created with errors, you can make use of the void function. To viewthe financial status of your company, you can make use of the cash flow statement and balance sheet or profit & loss reports.

2.1 Opening Balance Entries

The following topics are relevant to this section:

• Creating opening balances• Creating opening balances for accounts receivable and payable• Importing opening balances for accounts receivable and payable

Note: You should at least create a financial year that is one year earlier than the period that you intend to start the opening balanceentries with. For example, if the opening balance entries start from 2006, you will need to create the financial year for 2005.

2. Financial Accounting and Reporting

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Creating opening balance entries

To create opening balances:

1. Go to Finance/Entries/Opening bbalance. 2. Under the Criteria section at Reporting GGroup, select a reporting group to determine the layout of the general ledger accounts.3. At Type, select the general ledger account type. Alternatively, leave this option blank to view and create the opening

balance for all account types.4. Leave Balance/PL blank to view and create the opening balances for both the balance sheet and profit & loss accounts.

Alternatively, select one of the options to view and create the opening balances by balance sheet or profit & loss accounts.5. Under the Entry section at Journal nnumber, type or select a general journal number. All the opening balance entries that

you have created will be stored in the specified general journal. The general journal account that you select should not bethe same account used in the GL aaccount.

6. Type or select a general ledger account number at GL aaccount. Usually, the suspense account is selected as it acts as atemporary account for the system to store the unbalanced entries. Once all opening balance entries are created, the totalAssets will be the same as the total Liabilities/Equities. Therefore, the balance of the suspense account will be zero.

7. At Date, type or select the opening balance date. The opening balances entries that you create are one day prior to thisdate. Therefore, to create opening balance entries for January 1, 2006, you should enter the date as January 1, 2006. Allthe opening balance entries created will be December 31, 2005.

8. Type the respective opening balances for the selected general ledger account at Debit ((EUR) or Credit ((EUR) whereby (EUR)displays the default currency.

9. Click Close to save the opening balances. A message "Save changes?" will be displayed. Click Yes to save the changesand exit.

Tip: To view all accounts receivable entries that you have created, select "All" at Mode. At the same time, if youneed to create entries that have multiple currencies, you can click Columns to add the Cur. column. You canthen select a different currency for the account receivable entry.

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Creating opening balances for accounts receivable and payable

This section explains how you can create opening balances for specific debtors and creditors. The following procedures will beuseful when you need to create opening balances for your outstanding debtor and creditor invoices.

To ccreate oopening bbalances ffor aaccounts rreceivable:

1. Go to Finance/Entries/Opening bbalance. 2. Search for the accounts receivable account and click the Accounts rreceivable button (next to Entries column). You will see

the Opening bbalance ssheet screen grouped by the selected accounts receivable account. In the Opening bbalance ssheetscreen, you can type the total accounts receivable amount at Debit ((EUR) column. This is to identify the Allocated and Tobe aallocated differences when you create multiple accounts receivable.

3. At Code, type or select a debtor number.4. Type the our reference number at Our rref. This is mandatory. The our reference number that you create is the invoice

number linked to the account receivable.5. Type or select the invoice and due date at Invoice ddate and Due ddate respectively. The system will calculate the due date

if you have specified the payment terms at Payment condition for the debtor at the maintenance screen.6. At Debit ((EUR), type the invoice amount of the debtor. If you have a sales credit note, you should type the sales credit

note amount at Credit ((EUR) column. 7. If more than one invoice needs to be created, repeat steps 3 to 6.8. Click Save to save the opening balances for accounts receivable.

Note: The default currency at Debit ((EUR) or Credit ((EUR) is displayed as EUR. If the default currency is USD, GBP, CNY, or others,this column will be displayed accordingly.

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To ccreate oopening bbalances ffor aaccounts ppayable:

1. Go to Finance/Entries/Opening bbalance. 2. Search for the accounts payable account and click the Accounts ppayable button (next to Entries column). You will see the

Opening bbalance ssheet screen grouped by the selected accounts payable account. In the Opening bbalance ssheet screen,you can type the total accounts payable amount at Credit ((EUR) column. This is to identify the Allocated and To bbeallocated differences when you create multiple accounts payable.

3. At Code, type or select a creditor number.4. Type the our reference number at Our rref. This is mandatory. The our reference number that you create is the internal

reference number from the old system used by your company. 5. Type or select the invoice and due date at Invoice ddate and Due ddate respectively. The system will calculate the due date

if you have specified the payment terms at Payment ccondition for the creditor at the maintenance screen.6. At Credit ((EUR), type the invoice amount of the creditor. If you have a purchase credit note, you should type the purchase

credit note amount at Debit ((EUR) column. 7. If more than one invoice needs to be created, repeat steps 3 to 6.8. Click Save to save the opening balances for accounts payable.

Note: The default currency at Debit ((EUR) or Credit ((EUR) is displayed as EUR. If the default currency is USD, GBP, CNY, or others,this column will be displayed accordingly.

Tip: To view all accounts payable entries that you have created, select "All" at Mode. At the same time, if youneed to create entries that have multiple currencies, you can click Columns to add the Cur. column. You canthen select a different currency for the account payable entry.

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Importing opening balances for accounts receivable and payable

Instead of manually creating the opening balances for accounts receivable and payable, you can make use of the importfunction. By using the import function, you can create new or select an existing Microsoft Excel file and import all the accountsreceivable and payable opening balances into the system.

Note: The following example explains importing for accounts receivable opening balances, but is also applicable for accountspayable opening balances.

Important: Before you import the accounts receivable and payable opening balances into the system, you will need to createthe opening balances based on the standard format used in Exact GGlobe. The standard format is displayed and used inMicrosoft Excel. Based on the following procedure, click New from the Opening bbalance ssheet box instead of the Import iconto create a file for the accounts receivable or payable opening balances. Once the required file is created, you can start to importthe opening balances for accounts receivable or payable.

To iimport oopening bbalances ffor aaccounts rreceivable:

1. Go to Finance/Entries/Opening bbalance. 2. Search for the accounts receivable account and click the Accounts rreceivable button (next to Entries column). You will see

the Opening bbalance ssheet screen grouped by the selected accounts receivable account. 3. Click to select the Import icon. You will see the Opening bbalance ssheet box. 4. Click Select ffile to search for the Microsoft Excel file that comprises the lists of accounts receivable opening balances. You

will see the Select EExcel ssheet screen.5. Once you have found the required file, click Open to import the accounts receivable opening balances into the system.6. Click Save to save the opening balances for accounts receivable.

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2.2 Bank/Cash Financial Entries

The bank/cash journal is used to create and maintain bank or cash transactions. You can also create the opening balances forbank/cash entries.

Creating bank/cash financial entries

The following process explains entries for the bank journal which is also applicable for the cash journal. In the example for Tocreate bank financial entries, payment is made by matching the payment with the invoice of the exact amount. The Make bbankentries screen consists of three sections:

• Bank jjournal hheader - This displays the bank balance information such as the opening balance, closing balance, date, andso on. The opening balance is based on the Balance at the bank general ledger card linked to the bank journal.

• Bank jjournal ssub llines - This displays the cash in/out information such as the creditor/debtor accounts, amount, date, andso on.

• Information ppanel - This displays the general ledger account and description, debtor account, address, bank account,resource, and so on. This information is displayed accordingly when you select a row of the financial transaction. Cash iin(EUR) and Cash oout ((EUR) display the total of all the cash in and cash out entries that you have created. As for Difference ((EUR),the system will display an amount if there are differences in the total cash in/out amount compared to the opening balance.

Tip: You can add or delete columns to the bank journal header and sub lines when you click Columns.

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To ccreate bbank ffinancial eentries:

1. Go to Finance/Entries/Bank/Cash, select a journal and click New. You will see the Make bbank eentries screen.2. Under the bank journal header section at Date, type or select the date of the bank entries. By default, the current date

is displayed.3. At Description under the bank journal sub lines, define the description for the bank entry.4. Based on the example at the first row of the bank journal sub lines section (see previous screen), type or select a creditor

account at Account.5. Type the cash out amount for the bank entry at Cash oout. You will see the Allocate sscreen once you press the TAB key

through Our rref. Under Invoice, the invoice that matches the created amount is displayed. 6. Select the invoice, click Match and Close to match the invoice with the payment made and to return to the Make bbank

entries screen.7. If more than one financial entry needs to be created for a bank journal, repeat steps 3 to 8.8. Click Close in the Make bbank eentries screen to save the bank financial entries. A message "Header amount isn't the same

as the total of the amounts in the lines. Correct closing balance automatically?" will be displayed. Click Yes to save thechanges and to exit.

Note: The system will automatically define the debtor/creditor account as "Unknown debtor" or "Unknown creditor" at Accountwhen no account is selected for the accounts receivable or payable transactions.

Examples of bank financial entries

Date Details oof ttransactions02-04-2007 Your company received a cheque (no 123456) amounted to EUR 2,500.00 from Flopshop BV for a sales payment03-04-2007 Your company made payment with a cheque amounted to EUR 3,000.00 to buy office furniture

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To ccreate bbank ffinancial eentries ffor tthe ttransactions:

1. Go to Finance/Entries/Bank/Cash, select the bank journal and click New. You will see the Make bbank eentries screen.2. Under the bank journal header section at Date, type or select 02-04-2007 to record the first transaction. Press TAB to

move to the other columns.3. At Description under the bank journal sub lines, define the description for the bank entry. You can type "Received

payment cheque no.123456". Under the Account column, type or select Flopshop BBV to indicate that the payment isreceived from this account.

4. Type the cash in amount (EUR 2,500.00) for the bank entry at Cash iin. You will see the Allocate screen once you press theTAB key through Our rref. Under Invoice, the invoice that matches the created amount is displayed.

5. Select the invoice, click Match and Close to match the invoice with the payment made and to return to the Make bbankentries screen.

6. Go to the next sub line to record the second transaction. At Date, type or select 03-04-2007. Under the Descriptioncolumn, type "Buy office furniture". Press TAB to go to the Cash oout column. You can skip the Account column as thetransaction does not involve a creditor account.

7. Under the Cash oout column, type EUR 3,000.00. Press TAB to go the following columns. Notice that this transaction willautomatically be matched. Under the G/L column, type or select the G/L account to record the double-entry for thistransaction. This G/L account should be the Office ffurniture as the payment is made for the purchase of office furniture.The double-entry for this transaction is debit 3,000.00 in the Bank G/L account and credit 3,000.00 in the Office furnitureG/L account.

8. Click Close in the Make bbank eentries screen to save the bank financial entries. A message "Header amount isn't the sameas the total of the amounts in the lines. Correct closing balance automatically?" will be displayed. Click Yes to save thechanges and to exit.

Note: The system will automatically define the debtor/creditor account as "Unknown debtor" or "Unknown creditor" at Accountwhen no account is selected for the accounts receivable or payable transactions.

Editing bank financial entries

Once you have created the bank financial entries, you may need to make changes such as adding or removing the entries, aswell as editing the description or amount.

To eedit bbank ffinancial eentries:

1. Go to Finance/Entries/Bank/Cash, and select a bank journal.2. Click Zoom. You will see a list of bank financial entries grouped by the selected bank journal.3. Select the bank financial entry and click Open. You will see the Make bbank eentries screen. 4. Click Edit and make the necessary changes to the bank journal.5. Click Close to save the changes.

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Deleting bank financial entries

It is possible to delete a bank financial entry that has not been processed. Once you do this, the bank financial entry ispermanently removed from the system.

To ddelete bbank ffinancial eentries:

1. Go to Finance/Entries/Bank/Cash, and select a bank journal.2. Click Zoom. You will see a list of bank financial entries grouped by the selected bank journal.3. Select the bank financial entry to be deleted.4. Click Delete, and the message "Delete this entry?" will be displayed.5. Click Yes to delete the selected bank financial entry and exit.

2.3 Purchase Financial Entries

In Exact GGlobe, the purchase journal is used to create and maintain purchase transactions such as purchase invoice or credit notes.

Creating purchase financial entries

The following process explains the entries for the purchase journal. To create a purchase invoice, you must specify a positiveamount in the purchase journal header. As for a purchase credit note, you need to specify a negative amount. The Makepurchase eentry screen consists of three sections:

• Purchase jjournal hheader - This displays the creditor information such as the purchase date, creditor code, description, andso on. In this section, only the creditor general ledger account is defined. The default creditor general ledger or accountspayable account is derived from the purchase journal you defined at System/Finance/Journals.

• Purchase jjournal ssub llines - This displays the purchase information such as the general ledger accounts, amount, and so on.This section is used to create the offset accounts against the accounts payable entry you create at the purchase journal header.

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• Information ppanel - This displays the creditor account, address, bank account, resource, VAT number, project code, invoiceamount, and so on. The information is displayed accordingly when you select a row of the financial transaction.

To ccreate ppurchase ffinancial eentries:

1. Go to Finance/Entries/Purchase, select a journal and click New. You will see the Make ppurchase eentry screen.2. Under the purchase journal header section at Date and Reporting ddate, type or select the dates of the purchase entries. By

default, the current date is displayed. Date is the actual purchase invoice date from the invoice document sent by the creditorwhich is used by the system to compute the terms or aging. As for Reporting ddate, it is the date you record the purchase entry.

3. Type or select a creditor code at Creditor.4. At Your rreference, type the invoice number of your creditor or supplier. This is mandatory.5. Type a purchase amount at Amount, and the purchase description at Description.6. Click to attach a document from the creditor or supplier. Usually, the purchase invoice is attached to the purchase

financial entry. A purchase credit note document is attached here when you create a purchase credit note.7. Based on the example at the first row of the purchase journal sub lines section (see previous screen), type or select a

general ledger number at G/L to offset the accounts payable entry that you created at the purchase journal header.8. At Amount, type an amount for the purchase entry. By default, the description from the purchase journal header is

displayed at Description of the purchase journal sub lines. You can create another if there is a different description. Ifmore than one offsetting line needs to be created for the same creditor and your reference number, repeat steps 7 to 8.

9. Click Close to save the purchase financial entries.10. A message "New: Offset account Update: Creditor data" will be displayed. Click No to save the changes and to exit. Click

Yes if you want to update the offset account you selected at the purchase entry to the Offset aaccount found at theFinancial tab for the selected creditor's maintenance screen. This message will be displayed if the default option at"Update: Offset account?" under the Setting: DDialog section in the Define ccolumns screen is set to "Ask user". You can seethis setting when you click Columns.

Tip: You can add or delete columns to the purchase journal header and sub lines when you click Columns.

Tip: By default the payment condition displayed is linked to the creditor you created at Payment ccondition underthe Financial tab at Finance/Accounts ppayable/Maintain. If you have received payment conditions from thecreditor and you would like to create new or select an existing payment condition, click Conditions to create oradd the payment conditions directly from the Make ppurchase eentry screen. For more details on how to createpayment conditions, see 1.6 Payment Conditions.

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Examples of purchase financial entries

Date Details oof ttransactions10-04-2007 Your company purchased software stock worth EUR 6,000.00 from supplier Exact Software. Invoice number

is 20071221.11-04-2007 Exact Software sent a credit invoice to give your company a 10% discount as the transaction was the first

order between your company and Exact. The credit invoice number is CX20071001.

To ccreate ppurchase ffinancial eentry ffor tthe ffirst ttransaction:

1. Go to Finance/Entries/Purchase, select the purchase journal and click New. You will see the Make ppurchase eentry screen.2. Under the purchase journal header section at Date and Reporting ddate, type or select the dates of the purchase entries.

By default, the current date is displayed. Date is the actual purchase invoice date from the invoice document sent by thecreditor which is used by the system to compute the terms or aging. As for Reporting ddate, it is the date you record thepurchase entry. For this example, consider the Date as equal to Reporting ddate at 10-04-2007.

3. Under the Creditor column, type or select Exact SSoftware.4. At Your rreference, type the invoice number (20071221) sent by the creditor. This is mandatory.5. Type the purchase amount of EUR 6,000.00 under the Amount column. At Description, you can type "Buy software

packages from Exact Software".6. Click to attach a document from the creditor. In this example, you can attach the purchase invoice. 7. Click Conditions to define the payment condition for the purchase invoice.

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8. Press TAB to go to the first row of the purchase journal sub lines. Type or select a general ledger account at G/L to offsetthe accounts payable entry that you have created at the purchase journal header. In this example, type "Stock software"as you purchased software packages and the transaction will increase your software stock.

9. At Amount, the amount entered in the header section will be displayed. You can change the amount if there are multipleoffsetting lines that need to be created. However for this example, leave the amount as EUR 6,000.00.

10. Meanwhile, under the VAT column, type or select the VAT used in the transaction. In this example, no VAT is used in thetransaction.

11. At Description, the description from the purchase journal header is displayed by default. You can create another if there isa different description.

12. Click Close to save the purchase financial entry. Alternatively, if you want to continue recording another new transaction,click New.

13. A message "New: Offset account Update: Creditor data" will be displayed. Click No to save the changes and to exit. ClickYes if you want to update the offset account you selected at the purchase entry to the Offset aaccount found at theFinancial tab for the selected creditor's maintenance screen. This message will be displayed if the default option at"Update: Offset account?" under the Setting: DDialog section in the Define ccolumns screen is set to "Ask user". You can seethis setting when you click Columns.

To ccreate ppurchase ffinancial eentry ffor tthe ssecond ttransaction:

1. Go to Finance/Entries/Purchase, select the purchase journal and click New. You will see the Make ppurchase eentry screen. 2. Under the purchase journal header section at Date and Reporting ddate, type or select 11-004-22007.3. Under the Creditor column, type or select Exact SSoftware.4. At Your rreference, type the credit invoice number (CX20071001) sent by the creditor. This is mandatory.5. Type the credit invoice amount of -600.00 under the Amount column. At Description, you can type "10% discount from

Exact Software".

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6. Click to attach a document from the creditor. In this example, you can attach the credit invoice.7. Press TAB to go to the first row of the purchase journal sub lines. Type or select a general ledger account at G/L to offset

the accounts payable entry that you have created at the purchase journal header. In this example, type "Stock software"as the discount given will decrease the value of your software stock.

8. At Amount, the amount entered in the header section will be displayed. You can change the amount if there are multipleoffsetting lines that need to be created. However for this example, leave the amount as -600.00.

9. At Description, the description from the purchase journal header is displayed by default. You can create another if there isa different description.

10. Click Close to save the purchase financial entry. Alternatively, if you want to continue recording another new transaction,click New.

11. A message "New: Offset account Update: Creditor data" will be displayed. Click No to save the changes and to exit. ClickYes if you want to update the offset account you selected at the purchase entry to the Offset aaccount found at theFinancial tab for the selected creditor's maintenance screen. This message will be displayed if the default option at"Update: Offset account?" under the Setting: DDialog section in the Define ccolumns screen is set to "Ask user". You can seethis setting when you click Columns.

Editing purchase financial entries

Once you have created the purchase financial entries, you may need to make changes such as adding or removing the entries,as well as editing the general ledger account or amount.

To eedit ppurchase ffinancial eentries:

1. Go to Finance/Entries/Purchase, and select a purchase journal.2. Click Zoom. You will see a list of purchase financial entries grouped by the selected purchase journal. 3. Select the purchase financial entry and click Open. You will see the Make ppurchase eentry screen. 4. Click Edit and make the necessary changes to the purchase journal.5. Click Close to save the changes.

Deleting purchase financial entries

It is possible to delete a purchase financial entry that has not been processed. Once you do this, the purchase financial entryis permanently removed from the system.

To ddelete ppurchase ffinancial eentries:

1. Go to Finance/Entries/Purchase, and select a purchase journal.2. Click Zoom. You will see a list of purchase financial entries grouped by the selected purchase journal.3. Select the purchase financial entry to be deleted. 4. Click Delete, and the message "Delete this entry?" will be displayed.5. Click Yes to delete the selected purchase financial entry and exit.

2.4 Sales Financial Entries

The sales journal is similar to the purchase journal. You can create and maintain invoices or credit notes in the sales journal.

Creating sales financial entries

The following process explains entries for the sales journal. To create sales invoice type entries, make sure you specify a positiveamount in the sales journal header. As for sales credit notes, you will need to specify a negative amount. The Make ssales eentryscreen consists of three sections:

• Sales jjournal hheader - This displays the debtor information such as the sales date, debtor code, description, and so on. Inthis section, only the debtor general ledger account is defined. The default debtor general ledger or accounts receivableaccount is derived from the sales journal you defined at System/Finance/Journals.

• Sales jjournal ssub llines - This displays the sales information such as the general ledger accounts, amount, and so on. Thissection is used to create the offset accounts against the accounts receivable entry you create at the sales journal header.

• Information ppanel - This displays the debtor account, address, bank account, VAT number, type/status, resource, project code,invoice amount, and so on. The information is displayed accordingly when you select a row of the financial transaction.

Note: In the example for To create sales financial entries, a sales entry with tax is created.

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Tip: You can add or delete columns to the sales journal header and sub lines when you click Columns.

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To ccreate ssales ffinancial eentries:

1. Go to Finance/Entries/Sales, select a journal and click New. You will see the Make ssales eentry screen.2. Under the sales journal header section at Date and Reporting ddate, type or select the dates of the sales entries. By

default, the current date is displayed. Date is the actual sales invoice date from the invoice document sent to the debtorwhich is used by the system to compute the terms or aging. As for Reporting ddate, it is the date you record the sales entry.

3. Type or select a debtor code at Debtor.4. At Your rreference, type the reference number of your debtor or customer. Usually, the reference number that you define is

the purchase order number based on the purchase order sent by the debtor.5. Type a sales amount and description at Amount and Description respectively.6. Click to attach a document from the debtor or customer. Usually, the sales invoice document is attached to the sales

financial entry. A sales credit note document is attached here when you create a sales credit note. 7. Based on the example at the first row of the sales journal sub lines section (see previous screen), type or select a general

ledger number at G/L.8. As there is tax involved, type or select the Tax code at Tax. 9. At Amount, type an amount for the sales entry. By default, the description from the sales journal header is displayed at

Description of the sales journal sub lines. You can create another if there is a different description. The taxable amount iscalculated and displayed at the second row of the sales journal entry. If more than one offsetting line needs to be createdfor the same debtor, repeat steps 6 to 8.

10. Click Close to save the sales financial entries and to exit.

Examples of sales financial entries

Date Details oof ttransactions11-04-2007 Your company sold computer hardware worth EUR 10,000 to 3 Meta BV. The sales invoice number is

20070009.14-04-2007 3 Meta BV returned the computer hardware worth EUR 500.00 due to faulty hardware. An agreement was

reached that no replacement will be given, but the total amount to be paid by the customer will be deductedwith this amount. A credit note with no. 20071009 was issued to 3 Meta BV.

Tip: By default, the payment condition displayed is linked to the debtor you created at Payment ccondition underthe Financial tab at Finance/Accounts rreceivable/Maintain. If you need to create new payment conditions orselect an existing payment condition for the debtor, you can click Conditions to create or add the paymentconditions directly from the Make ssales eentry screen. For more details on how to create payment conditions, see1.6 Payment Conditions.

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To ccreate ssales ffinancial eentry ffor tthe ffirst ttransaction:

1. Go to Finance/Entries/Sales, select the sales journal and click New. You will see the Make ssales eentry screen.2. Under the sales journal header section at Date and Reporting ddate, type or select the dates of the sales entries. By

default, the current date is displayed. Date is the actual sales invoice date from the invoice document sent to the debtorwhich is used by the system to compute the terms or aging. As for Reporting ddate, it is the date you record the sales entry.For this example, consider the Date as equal to Reporting ddate at 11-04-2007.

3. Type or select 3 MMeta BB.V aat DDebtor.4. At Your rreference, type the reference number of your debtor or customer. Usually, the reference number that you define is

the purchase order number based on the purchase order sent by the debtor.5. At Amount, type "EUR 10,000". This is the sales amount. At Description, you can type "Computer sales to 3 Meta BV".6. Click to attach the sales invoice to this financial entry. Click Conditions to define the payment condition for this

transaction. 7. Press TAB to go to the first row of the sales journal sub lines. Type or select a general ledger account at G/L to offset the

accounts receivable entry that you have created at the sales journal header. In this example, type "Revenue of hardware"as the revenue from this transaction came from the sales of computer hardware.

8. At Amount, the amount entered in the header section will be displayed. You can change the amount if there are multipleoffsetting lines that need to be created. However for this example, leave the amount as EUR 10,000.00.

9. Meanwhile, under the VAT column, type or select the VAT used in the transaction. In this example, no VAT is used inthe transaction.

10. At Description, the description from the sales journal header is displayed by default. You can create another if there is adifferent description.

11. Click Close to save the sales financial entry. Alternatively, if you want to continue recording another new transaction, click New.

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To ccreate ssales ffinancial eentry ffor tthe ssecond ttransaction:

1. Go to Finance/Entries/Sales, select the sales journal and click New. You will see the Make ssales eentry screen. 2. Under the purchase journal header section at Date and Reporting ddate, type or select 14-004-22007.3. Under the Debtor column, type or select 3 MMeta BBV.4. At Our rreference, type the credit note number (20071009) that you issued to your customer. This is mandatory.5. Type the credit note amount of -500.00 under the Amount column. At Description, you can type "3 Meta BV returned computers".6. Click to attach the credit note to this financial entry. 7. Press TAB to go to the first row of the sales journal sub lines. Type or select a general ledger account at G/L to offset the

accounts payable entry that you have created at the purchase journal header. In this example, type "Revenue of hardware"as the return of computers by the customer will decrease the value of your hardware revenue.

8. At Amount, the amount entered in the header section will be displayed. You can change the amount if there are multipleoffsetting lines that need to be created. However for this example, leave the amount as -500.00.

9. At Description, the description from the sales journal header is displayed by default. You can create another if there is adifferent description.

10. Click Close to save the sales financial entry. Alternatively, if you want to continue recording another new transaction, click New.

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Editing sales financial entries

Once you have created the sales financial entries, you may need to make changes such as adding or removing the entries, aswell as editing the general ledger account or amount.

To eedit ssales ffinancial eentries:

1. Go to Finance/Entries/Sales, and select a sales journal.2. Click Zoom. You will see a list of sales financial entries grouped by the selected sales journal. 3. Select the sales financial entry and click Open. You will see the Make ssales eentry screen. 4. Click Edit and make the necessary changes to the sales journal.5. Click Close to save the changes.

Deleting sales financial entries

It is possible to delete a sales financial entry that has not been processed. Once you do this, the sales financial entry ispermanently removed from the system.

To ddelete ssales ffinancial eentries:

1. Go to Finance/Entries/Sales, and select a sales journal.2. Click Zoom. You will see a list of sales financial entries grouped by the selected sales journal.3. Select the sales financial entry to be deleted. 4. Click Delete, and the message "Delete this entry?" will be displayed.5. Click Yes to delete the selected sales financial entry and to exit.

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2.5 General Journal Entries

In Exact GGlobe, you can also create opening balances in the general journal. Usually, you will create financial transactions, ormake corrections to incorrect entries with the general journal.

Creating general journal entries

The following process explains entries for the general journal. The Make ggeneral jjournal eentries screen consists of three sections:

• General jjournal hheader - This displays the general journal information such as the reporting date, transaction type, openingbalance, and so on.

• General jjournal ssub llines - This displays the transactions information such as the date, general ledger accounts, amount,and so on.

• Information ppanel - This displays the general ledger account, debtor/creditor account, address, bank account, resource, costcenter, debit total (EUR), credit total (EUR), and so on. The information is displayed accordingly when you select a row of thefinancial transaction.

Note: In the example for To create general journal entries, the journal entries created are for reclassification of rental costs tovoice communication costs.

Tip: You can add or delete columns to the general journal header and sub lines when you click Columns.

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To ccreate ggeneral jjournal eentries:

1. Go to Finance/Entries/General jjournal, select a journal and click New. You will see the Make ggeneral jjournal eentries screen.2. Under the general journal header section at Reporting ddate, type or select the reporting date for the journal entries. By

default, the current date is displayed. This is the date you record the general ledger entry.3. Based on the example at the first row of the general journal sub lines section (see previous screen), type or select the

actual transaction date at Date, if this date is different from the reporting date. Date is used by the system to compute theterms or aging.

4. Type or select the general ledger number for voice communication costs at G/L.5. At Description and Debit, type the description and a debit amount respectively for the journal entry.6. Press TAB all the way through the last column from the first row of general journal sub lines, and then type or select the

general ledger number for rental costs at G/L under the second row of general journal sub lines.7. Click Close to save the general journal entries and to exit.

Note: The system will automatically define the debtor/creditor account as "Unknown debtor" or "Unknown creditor" at Accountwhen no account is selected for the accounts receivable or payable transactions.

Important: The message "This entry is not balanced on:*Our ref. Please correct the errors marked in red" will be displayedwhenever the Our rref. column has a different reference number for the same balancing entry. Therefore, each double entrytransaction should have the same reference number.

Tip: At times, the system is able to create balancing lines automatically if you have not selected a general ledgeraccount. For such cases, the offset account, linked to the journal will be automatically defined.

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Example of a general journal entry

On 16-04-2007, you discovered that a transportation cost entry amounted to EUR 100.00 has been wrongly debited in the costsof repair account. To correct this error, you will make a general journal entry.

To mmake aa ggeneral jjournal eentry bbased oon tthe eexample:

1. Go to Finance/Entries/General jjournal, select the general journal and click New. You will see the Make ggeneral jjournalentries screen.

2. Under the general journal header section at Date, type or select 16-004-22007. By default, the current date is displayed.This is the date you record the general ledger entry.

3. In the sub lines section, type or select the dates of the entry. Date is the actual date of the transaction while Reportingdate is the date you record the correction journal entry. By default, the dates will follow the date entered in the headersection. For this example, consider the Date as equal to Reporting ddate at 16-04-2007.

4. Under the G/L column, type or select the "Transportation expenses" G/L account to debit the transportation cost in thisaccount. Type the description of the entry under the Description column. In this example, you can type "Correcting entryfor transportation expense". Press TAB until you reach the Debit column. In this column, type EUR 100.00.

5. Press TAB again to move to the second row of the sub lines section. Under the G/L column, select the "Costs of repair"G/L account. By default, the description on the second row of the sub lines section will follow the description enteredunder the Description column on the first row of the sub lines section. Notice that under the Credit column, the amount ofEUR 100.00 is automatically entered. In the general journal entry, the amount in the subsequent entry line will alwaysbalance the amount entered in the preceding line. With the credit entry, the previous error of debiting the expense in thecosts of repair G/L account can be canceled.

6. Click Close to save the general journal entry and to exit.

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Editing general journal entries

Once you have created the general journal entries, you may need to make changes such as adding or removing the entries, aswell as editing the general ledger account or debit/credit amount.

To eedit ggeneral jjournal eentries:

1. Go to Finance/Entries/General jjournal, and select a general journal.2. Click Zoom. You will see a list of general journal entries grouped by the selected general journal. 3. Select the general journal entry and click Open. You will see the Make ggeneral jjournal eentries screen. 4. Click Edit and make the necessary changes to the general journal.5. Click Close to save the changes.

Deleting general journal entries

It is possible to delete a general journal entry that has not been processed. Once you do this, the general journal entry ispermanently removed from the system.

To ddelete ggeneral journal entries:

1. Go to Finance/Entries/General jjournal, and select a general journal.2. Click Zoom. You will see a list of general journal entries grouped by the selected general journal.3. Select the general journal entry to be deleted.4. Click Delete, and the message "Delete this entry?" will be displayed.5. Click Yes to delete the selected general journal entry and to exit.

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2.6 Recurring Entries

Whenever there are journal entries that are created periodically, you can make use of recurring entries. In Exact GGlobe, you haveto create the recurring entry templates before you can actually create the required recurring journal entries. Some examples ofrecurring entries are lease installments, monthly salary payment, monthly service fees, mortgage payment, and so on.

Important: The recurring entries templates can only be created for sales, purchase, and general journals. At the same time, therecurring entries templates are only displayed at Finance/Entries/Recurring eentries/Enter.

In this section, the topics that will be covered are creating recurring entries for sales, purchase, and general journals.

Creating recurring entries for sales journal

The following process explains recurring entries for the sales journal. The Make rrecurring ssales eentries screen consists ofthree sections:

• Sales jjournal hheader - This displays the debtor information such as sales date, debtor code, description, and so on.• Sales jjournal ssub llines - This displays the recurring sales information such as the general ledger accounts, amount, and so on.• Information ppanel - This displays the debtor account, address, bank account, type/status, resource, invoice amount, and so on.

This information is displayed accordingly when you select a line at the recurring sales entry.

Note: In the example for To create recurring sales entries, the sales recurring journal entry created is for a monthly service fee.

Tip: You can add or delete columns from the sales journal header and sub lines when you click Columns.

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To ccreate rrecurring ssales eentries:

1. Go to Finance/Entries/Recurring eentries/Enter, select a sales journal and click New. You will see the Make rrecurring ssalesentries screen.

2. Under the sales journal header at Date, type or select the date of the sales entries. By default, the current date is displayed.3. Type or select a debtor code at Debtor. This is mandatory.4. At Your rreference, type the your reference number.5. Type a recurring sales amount and description at Amount and Description respectively.6. Under the sales journal sub lines, type or select the general ledger number for a revenue account at G/L, and then type an

amount for the recurring sales entry at Amount. By default, the description from the sales journal header is displayed atDescription of the sales journal sub lines. You can create another if there is a different description. If more than onerecurring sales entry need to be created for the same debtor, repeat step 6.

7. Click Close to save the recurring sales entries and to exit.

Example of a recurring sales entry

Your customer, H&S will pay EUR 500.00 every month for the software installment, starting 02-05-2007.

Tip: With recurring entries, you can also create all the relevant data for the recurring sales entries and leave theDebit and Credit columns blank. This is to cater for recurring sales with fluctuating amount. Likewise, this appliesto the recurring purchase entries. For more details on how to create recurring entries without the amount, seeCreating recurring entries for purchase journal.

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To ccreate tthe rrecurring ssales eentry bbased oon tthe eexample:

1. Go to Finance/Entries/Recurring eentries/Enter, select a sales journal and click New. You will see the Make rrecurring ssalesentries screen.

2. Under the sales journal header section at Date and Reporting ddate, type or select 02-05-2007.3. Type or select H&S under the Debtor column. This is mandatory. 4. At Your rreference, type the your reference number. Usually, the reference number that you type is the purchase order

number based on the purchase order sent by the debtor. At Our rreference, type the our reference number. Usually, this isthe invoice number you sent to your customer.

5. Type "EUR 500.00" at Amount and the description of the recurring sales entry at Description. In this example, type"Monthly installment fee".

6. Under the sales journal sub lines, type or select the general ledger number for a revenue account at G/L. In this example,type or select Miscellaneous rrevenue and then type "EUR 500.00" for the recurring sales entry amount at Amount. Bydefault, the description from the sales journal header is displayed at Description of the sales journal sub lines. You cancreate another if there is a different description.

7. Click Close to save the recurring sales entry and to exit.

Editing recurring entries for sales journal

Once you have created the recurring sales entries, you may need to make changes such as adding or removing the recurringsales entries. You may also need to edit the general ledger account or amount to the recurring sales entry.

To eedit rrecurring ssales eentries:

1. Go to Finance/Entries/Recurring eentries/Enter, and select a sales journal.2. Click Zoom. You will see a list of recurring sales entries grouped by the selected sales journal. 3. Select the recurring sales entry and click Open. You will see the Make rrecurring ssales eentries screen.4. Click Edit and make the necessary changes to the recurring sales journal, and then click Close to save the changes and exit.

Deleting recurring entries for sales journal

It is possible to delete a recurring sales entry. When you do this, the recurring sales entry is permanently removed from the system.

To ddelete rrecurring ssales eentries:

1. Go to Finance/Entries/Recurring eentries/Enter, and select a sales journal.2. Click Zoom. You will see a list of recurring sales entries grouped by the selected sales journal.3. Select the recurring sales entry to be deleted. 4. Click Delete, and the message "Delete this entry?" will be displayed. 5. Click Yes to delete the selected recurring sales entry and exit.

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Creating recurring entries for purchase journal

The following process explains recurring entries for the purchase journal. The Make rrecurring ppurchase eentries screen consistsof three sections:

• Purchase jjournal hheader - This displays the creditor information such as the purchase date, creditor code, description, and so on.• Purchase jjournal ssub llines - This displays the recurring purchase information such as the general ledger accounts, amount,

and so on. • Information ppanel - This displays the creditor account, address, bank account, type/status, resource, invoice amount, and

so on. This information is displayed accordingly when you select a line at the recurring purchase entry.

Note: In the example for To create recurring purchase entries, the purchase recurring journal entry created is for a monthlypurchase of office supplies. The Amount column is not defined as this example caters for a fluctuating purchase amount.

To ccreate rrecurring ppurchase eentries:

1. Go to Finance/Entries/Recurring eentries/Enter, select a purchase journal and then click New. You will see the Makerecurring ppurchase eentries screen.

2. Under the purchase journal header at Date, type or select the date of purchase entries. By default, the current date is displayed.3. Type or select a creditor code at Creditor.4. At Your rreference, type the your reference number. This is mandatory.5. Type a recurring purchase description at Description.

Tip: You can add or remove columns from the sales journal header and sub lines when you click Columns.

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6. Under the purchase journal sub lines, type or select the general ledger number for an expense account at G/L. By default,the description from the purchase journal header is displayed at Description of the purchase journal sub lines. You cancreate another if there is a different description. If more than one recurring purchase entries need to be created for thesame creditor, repeat step 6.

7. Click Close to save the recurring purchase entries and to exit.

Example of a recurring purchase entry

Starting 02-05-2007, your company will pay Exact Software EUR 650.00 every month for the installment of software purchasefrom the creditor.

To ccreate tthe rrecurring ppurchase eentry bbased oon tthe eexample:

1. Go to Finance/Entries/Recurring eentries/Enter, select a purchase journal and then click New. You will see the Makerecurring ppurchase eentries screen.

2. Under the sales journal header section at Date and Reporting ddate, type or select 02-05-2007.3. Type or select Exact Software at Creditor.4. At Your rreference, type the your reference number. This is mandatory. Usually, this is the invoice number sent by the

creditor to your company. 5. Type "EUR 650.00" at Amount. At Description, type the description of the recurring purchase entry. In this example, type

"Monthly payment tot?? Exact".6. Under the purchase journal sub lines, type or select the general ledger account to be used in this entry at G/L. In this

example, type or select Stock ssoftware and then type "EUR 650.00" for the recurring purchase entry amount at Amount.By default, the description from the purchase journal header is displayed at Description of the purchase journal sub lines.You can create another if there is a different description.

7. Click Close to save the recurring purchase entries and to exit.

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Editing recurring entries for purchase journal

Once you have created the recurring purchase entries, you may need to make changes such as adding or removing the recurringpurchase entries. You may also need to edit the general ledger account or amount to the recurring purchase financial entry.

To eedit ppurchase eentries:

1. Go to Finance/Entries/Recurring eentries/Enter, and select a purchase journal.2. Click Zoom. You will see a list of recurring purchase entries grouped by the selected purchase journal.3. Select the recurring purchase entry and click Open. You will see the Make rrecurring ppurchase eentries screen. 4. Click Edit and make the necessary changes to the recurring purchase journal, and then click Close to save the changes

and to exit.

Deleting recurring entries for purchase journal

It is possible to delete a recurring purchase entry. When you do this, the recurring purchase entry is permanently removed fromthe system.

To ddelete ppurchase ffinancial eentries:

1. Go to Finance/Entries/Recurring eentries/Enter, and select a purchase journal.2. Click Zoom. You will see a list of recurring purchase entries grouped by the selected purchase journal.3. Select the recurring purchase entry to be deleted.4. Click Delete, and the message "Delete this entry?" will be displayed. 5. Click Yes to delete the selected recurring purchase entry and to exit.

Creating recurring entries for general journal

The following process explains recurring entries for the general journal. The Make rrecurring ggeneral jjournal eentries screenconsists of three sections:

• General jjournal hheader - This displays the recurring general journal information such as reporting date, opening balance,and so on.

• General jjournal ssub llines - This displays the recurring general journal information such as the general ledger accounts,description, amount, and so on.

• Information ppanel - This displays the general ledger account, general ledger description, address, bank account, resource,debit total (EUR), credit total (EUR) and so on. This information is displayed accordingly when you select a line at therecurring general journal entry.

Note: In the example for To create recurring general journal entries, the recurring general journal entries created are foramortization of goodwill.

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Tip: You can add or remove columns from the general journal header and sub lines when you click Columns.

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To ccreate rrecurring ggeneral jjournal eentries:

1. Go to Finance/Entries/Recurring eentries/Enter, select a general journal and then click New. You will see the Makerecurring ggeneral jjournal eentries screen.

2. Under the general journal header at Reporting DDate, type or select the reporting date of general journal entries. By default,the current date is displayed.

3. Based on the example at the first row of the general journal sub lines section (see previous screen), type or select theactual transaction date at Date, if this date is different from the reporting date. Date is used by the system to compute theterms or aging.

4. Type or select the general ledger number for an amortization expense account at G/L under the general journal sub lines.5. At Description, type the description for the general journal entry.6. Type the expense amount at Debit.7. Press TAB to go to the last column of the general journal sub lines. Then type or select the general ledger number for the

accruals of amortization account at G/L under the second row of the general journal sub lines.8. Click Close to save the recurring general journal entries and exit.

Example of a recurring general journal entry

Your company has to pay a monthly rental worth EUR 2,500.00 for renting an office unit starting 27-04-2007.

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To ccreate aa rrecurring ggeneral jjournal eentry bbased oon tthe eexample:

1. Go to Finance/Entries/Recurring eentries/Enter, select a general journal and then click New. You will see the Makerecurring ggeneral jjournal eentries screen.

2. Under the general journal header at Date, type or select 27-004-22007.3. In the general journal sub lines section, type or select the actual transaction date at Date and the date when you record

the entry at Reporting ddate. In this example, type or select 27-004-22007 at Date and Reporting ddate. 4. Type or select the general ledger account to be used for recording of the rental expense at G/L. In this example, type or

select Rental ccosts. 5. Under the Description column, type "Monthly payment for office rental". This is the description of the recurring general

journal entry. 6. Type "EUR 2,500.00" under the Debit column to debit the rental costs general ledger account with the monthly rental amount. 7. Press TAB to go to the next row in the general journal sub lines section. Under the G/L column, type or select Account

payable. This general ledger account will be used to record the double-entry for the expense debited in the rental costsgeneral ledger account. Notice that at Description, the description typed in the first row in the general journal sub linessection is automatically displayed. In addition, under the Credit column, the amount of EUR 2,500.00 is automaticallydisplayed. This automatic entry of amount is based on the double-entry accounting principle.

8. Click Close to save the recurring general journal entry and exit.

Editing recurring entries for general journal

Once you have created the recurring general journal entries, you may need to make changes such as adding or removing the recurringgeneral journal entries. You may also need to edit the general ledger account or amount to the recurring general journal entry.

To eedit rrecurring ggeneral jjournal eentries:

1. Go to Finance/Entries/Recurring eentries/Enter, and select a general journal.2. Click Zoom. You will see a list of recurring general journal entries grouped by the selected general journal.3. Select the recurring general journal entry and click Open. You will see the Make rrecurring ggeneral jjournal eentries screen. 4. Click Edit and make the necessary changes to the recurring general journal, and then click Close to save the changes and to exit.

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Deleting recurring entries for general journal

It is possible to delete the recurring general journal entries. When you do this, the recurring general journal entries arepermanently removed from the system.

To ddelete rrecurring ggeneral jjournal eentries:

1. Go to Finance/Entries/Recurring eentries/Enter, and select a general journal.2. Click Zoom. You will see a list of recurring general journal entries grouped by the selected general journal.3. Select the recurring general journal entries to be deleted.4. Click Delete, and the message "Delete this entry?" will be displayed. 5. Click Yes to delete the selected recurring general journal entry and to exit.

2.7 General Ledger Card

In Exact GGlobe, the general ledger card allows you to see all financial transactions specific to one general ledger account whenyou apply the various filters, sorting, or groupings to the displayed transactional data. The displayed financial transactions areentries that have been processed to the respective general ledger accounts. You can also view unprocessed financialtransactions from this card.

With the search criteria, you can filter the results to view the various transaction types such as sales invoices, sales credit notes,purchase invoices, purchase credit notes, payment, receipts, and others, individually or all at the same time. In addition, thegeneral ledger card can be grouped by our reference, your reference, debtor, creditor, journal, item, resource, period, and so on.Besides the grouping function, you can filter by specific data such as the order, debtor, creditor, journal, project, warehouse,and so on.

The flexibility of this function enables you to include the required information or exclude unnecessary information so that onlythe desired financial transactions will be displayed in the card.

Meanwhile for general ledger accounts that allow linking of transactions for reconciliation purposes, you can link transactionsin a general ledger card if the balance of the transactions is zero. However, you can still link transactions with the balance notequal to zero in a general ledger card of a balance sheet general ledger account of the neutral account type and also a profit &loss general ledger account. Further information on how to link transactions in a general ledger card will be described in thischapter.

Note: In the example for To view the general ledger card, the accounts receivable general ledger account is selected.

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To vview tthe ggeneral lledger ccard:

1. Go to Finance/General lledger/Cards, select a general ledger account and then click Display. You will see the General lledgercard screen. You can also view the general ledger card from other menu paths in the system.

2. Define the relevant criteria and click Refresh. The search results will be displayed.

From the example of the general ledger card shown, the financial transactions displayed are only for sales invoice. Since thereare no specific date filters, all the historical financial transactions are also displayed in the general ledger card. As a specificfilter for the debtor is defined, this card only displays financial transactions linked to the company called Software Solutions.

In this card, you can view the detailed entries of each financial transaction. You can make use of Details to view the paymentdate, cash instrument, discounts, and so on. Different screens are displayed when you click Details. This actually depends onthe type of transaction that you selected. If you have selected a cash/bank type of transaction, you will see the payment detailsthat display the cash flow entry screen. If a purchase invoice entry is selected, you will then see the payment condition screenfor the purchase invoice. At the same time, not all general cards will have the Details button.

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Click Our rref. or Your rref. after selecting a financial transaction to view the transaction report based on the Our RRef. or Your rref.number. In these two views, the void function is also available for you to void the transactions, if applicable. Besides printingthe financial transactions, you can also export this information to Microsoft Excel. At the same time, click the Graph button toprint or display the graph and data in Microsoft Excel.

To modify a financial transaction such as date, our reference number, account, resource, description, and so on, click Change.You can make modifications to processed or unprocessed financial transactions.

To llink ttransactions iin ggeneral lledger ccard:

1. Go to Finance/General lledger/Cards, select a general ledger account and then click Display. You will see the Generalledger ccard screen.

2. Define the relevant criteria and click Refresh. You will see the financial transactions involving the selected generalledger account.

3. Select the transactions that you want to link, and click Link. The Link and Unlink buttons will only be available if you haveallowed linking of transactions for the general ledger account when you define the settings for this general ledger account.For more information see Creating general ledgers in 1.3 Chart of General Ledgers.

Note: For a profit & loss general ledger account, you can link transactions in the general ledger card as described in step 3if the balance of the selected transactions is zero, which means the total debit and credit amount of the selectedtransactions must be equal.

However, if the selected transactions do not have a zero balance, you can still link transactions from a profit & lossgeneral ledger account or a balance sheet general ledger account of neutral account type, as described in step 3. In thisexample, if you click Link, you will see this message "The balance of the selected transactions is not zero. Do you want tocreate an entry for the difference?" Click Yes, and you will see the Process screen.

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4. In the Process screen, select General jjournal at Journal and the balance sheet general ledger account of neutral account typeat G/L AAccount.

5. At Date and Reporting ddate, type or select the transaction date and reporting date respectively for the balance entry. Bydefault, the dates will show the current date. At Description, it will show "Linking differences" by default. However, youcan change the description of the balance entry. Meanwhile, the Debit and Credit columns under the Transaction sectionwill automatically show the amount of balance difference. You cannot change the amount.

6. Click Process to link the transactions. The system allows you to link these imbalance transactions as it will automaticallygenerate a general journal entry for the balance difference and the Link function will automatically link all the selectedtransactions and the automatically-generated balance entry.

2.8 Revaluation

When your company uses foreign currencies without a fixed exchange rate, this means that the converted default currencies canfluctuate. Revaluation is used to reflect the value of assets and liabilities due to the fluctuations of the currency rate. This maycause your company to experience a gain or loss for the financial transactions. Revaluation can be done on general ledgeraccounts, invoices, bank/cash, or even prepayment based on the transaction or reporting date.

For example, Company Y made a deposit of USD 10,000.00 on 01-02-2006:Deposit amount (foreign currency) as at 01-02-2006 = USD 10,000.00Exchange rate as at 01-02-2006 = USD 1 : HKD 7.8Deposit amount (default currency) as at 01-02-2006 = HKD 78,000.00

The following are the double entries:Foreign ccurrency Default ccurrency

DR Bank USD 10,000.00 HKD 78,000.00CR Debtor USD 10,000.00 HKD 78,000.00

After a few months, there is a fluctuation in the exchange rate. In this example, company Y experiences a loss in the financialtransactions.

Exchange rate as at 01-05-2006 = USD 1 : HKD 7.5Therefore, the real value of the foreign currency USD 10,000 in the default currency will be HKD 75,000.00.

Exchange rate difference (loss) as at 01-05-2006 = HKD 3,000.00

To reflect the above losses, the following are the double entries involved when revaluation is done:DR Revaluation (loss) HKD 3,000.00

CR Bank HKD 3,000.00

In this section, the topics that will be covered are revaluating general ledger, invoices, and bank/cash.

Note: The revaluation application is available if you have the E-MMulti CCurrency module in your license.

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Revaluating general ledgers

To allow revaluation for the general ledgers, the Allow rrevaluation check box under the General section of the Basics tab atFinance/General LLedger/Chart oof GG/L's need to be selected. This check box is enabled only when the subadministrationselected is of neutral, stock, or asset account.To rrevalue ggeneral lledgers:

1. Go to Finance/General lledger/Revaluation/General lledger. Under the Filter section at G/L, type or select the range ofgeneral ledger accounts for revaluation.

2. Type or select the currency code at Currency. 3. Under the Criteria section at Date, type or select the revaluation date and at Journal, select the general journal. 4. Click Start to generate the financial entries that need to be revalued. You will see the Revaluation screen.5. Click Revalue for the system to start revaluating the financial entries. A message "Revalue: completed successfully!" will be

displayed. Click OK. Next, click Close to exit.

Tip: The Date field in step 3 will be displayed as Reporting ddate if you have selected Reporting ddate at Check:Closed pperiods in the Period aand yyear ccontrol section in System/General/Settings/General ssettings. You maywant to select the Reporting ddate option if you want to revalue your transactions based on the reporting date

and not the transaction date. The system uses the date logic based on the Check: CClosed pperiods setting for the first andfollowing revaluations. This means, if you have selected to use the Reporting ddate as the basis for your first revaluation,this logic will be applied to the following revaluations even though you change the Check: CClosed pperiods setting to Dateafter the first revaluation. This date logic also applies when you perform revaluation on invoices, bank/cash, andprepayment.

Example of a general ledger account revaluation

On 02-05-2007, your company orders stock worth USD 5,000. On this date, the exchange rate is EUR 1 = USD 1.235. The defaultcurrency of your company is Euro. For this transaction, you create a general journal entry by debiting the stock account andcrediting the Invoices to be received account with USD 5,000 (foreign currency) and EUR 4,048.58 (default currency).Calculation of the amount in Euro is by dividing 5,000 with 1.235. On 04-05-2007, the exchange rate fluctuates to EUR 1 = USD1.50. You want to revalue the general ledger account on this day.

To rrevalue tthe IInvoices tto bbe rreceived aaccount oon 004-005-22007:

1. Go to Finance/General lledger/Revaluation/General lledger. Under the Filter section at G/L, type or select the Invoices tobe received general ledger account. By default, when you click the browser to select the account, only the general ledgeraccounts that allow revaluation will be displayed. You can enable the revaluation function for a specific general ledgeraccount by selecting the Allow rrevaluation check box under the General section of the Basics tab when you click Open toopen a general ledger account at Finance/General LLedger/Chart oof GG/L's.

2. Next, type or select USD at Currency. 3. Under the Criteria section at Date, type or select 04-005-22007. This is the revaluation date. At Journal, select the general

journal. This is mandatory. The revaluation entries will be generated in this journal.4. Click Start to generate the financial entries that need to be revalued. You will see the Revaluation screen.5. Click Revalue for the system to start revaluating the financial entries. A message "Revalue: completed successfully!" will

be displayed. Click OK. To view the transaction of the revaluation process, click General lledger ccard.

Notice that at the exchange rate of EUR 1 = USD 1.50 on 04-05-2007, your company makes a profit of EUR 715.25. This amountis calculated based on the following formula:

Invoices to be received amount in EUR based on the new exchange rate = 5,000/1.5= 3,333.33Profit from the revaluation = Invoices to be received amount before fluctuation of exchange rate - Invoices to be received amountafter fluctuation of exchange rate= 4,048.58 - 3,333.33= 715.25

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Revaluating invoices

To rrevalue iinvoices:

1. Go to Finance/General lledger/Revaluation/Invoices && BBank/Cash. Select Invoices at Revalue. 2. Under the Criteria section, type or select the exchange rate date at Exchange rrate ddate.3. Click Refresh to display all the available invoices to be revalued based on the exchange rate. 4. Select the invoices that need to be revalued, and then click Revalue to generate the revaluation entry. You will see the

Revaluation screen.5. At Journal, type or select the general journal. 6. Click OK for the system to start revaluating and to exit.

Example of an invoice revaluation

On 03-05-2007, you record a sales invoice worth USD 1,000.00 to your debtor, Electric, in the sales journal. On this date, theexchange rate is EUR 1 = USD 1.20. Hence, the invoice amount in Euro is EUR 833.33. Calculation of the amount in Euro is bydividing 1,000 with 1.20. On 05-05-2007, the exchange rate fluctuates to EUR 1 = USD 1.12. Revalue the invoice on this day.

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To rrevalue tthe iinvoice oon 005-005-22007:

1. Go to Finance/General lledger/Revaluation/Invoices && BBank/Cash. Select Invoices at Revalue. 2. Under the Criteria section, type or select 05-005-22007 at Exchange rrate ddate. Click Refresh to display all the available

invoices to be revalued based on the exchange rate dated 05-05-2007.3. Select the invoice to be revalued and then click Revalue to generate the revaluation entry. You will see the Revaluation screen.4. At Journal, type or select the general journal. This is mandatory. The revaluation entries will be generated in this journal.5. Click OK for the system to start revaluating and to exit.

Notice that at the exchange rate of EUR 1 = USD 1.12 on 05-05-2007, your company makes a profit of EUR 59.53. This amountis calculated based on the following formula:

Invoice amount in Euro based on exchange rate on 05-05-2007 = 1,000/1.12= 892.86Profit from the revaluation = Invoice amount based on the new exchange rate - Invoice amount based on previous exchange rate = 892.86 - 833.33= 59.53

Revaluating bank/cash

To rrevalue bbank/cash:

1. Go to Finance/General lledger/Revaluation/Invoices && BBank/Cash. Select Bank // CCash at Revalue. 2. Type or select the currency code at Currency. This is mandatory. 3. Under the Criteria section, type or select the exchange rate date at Exchange rrate ddate. Based on this date, the exchange

rate for the selected currency as defined in the exchange rate maintenance table will be displayed at Exchange rrate. 4. Click Refresh to display the financial entries based on the defined criteria.5. Select the financial entry to be revalued, and then click Revalue to generate the revaluation entry. You will see the

Revaluation screen.6. At Journal, type or select the general journal. This is mandatory. The revaluation entries will be generated in this journal.7. Click OK for the system to start revaluating and exit.

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Example of a bank/cash revaluation

On 07-05-2007, a new shareholder invests HKD 1,000,000 into your company. On this date, the exchange rate is EUR 1 = HKD10.6453. You enter the new investment to the bank journal with amount under the Cash iin column at HKD 1,000,000. The Euroamount based on the exchange rate is EUR 93,938.17. This amount is calculated by dividing 1,000,000 with 10.6453. Underthe G/L column, type or select the Share ccapital general ledger account. Click Close to save the bank journal entry and to exit.On 08-07-2007, the exchange rate fluctuates to EUR 1 = HKD 10.7002. Revalue the bank journal entry on this day.

To rrevalue tthe bbank eentry oon 008-005-22007:

1. Go to Finance/General lledger/Revaluation/Invoices && BBank/Cash. Select Bank // CCash at Revalue. 2. Type or select HKD at Currency. This is mandatory.3. Under the Criteria section, type or select 08-005-22007 at Exchange rrate ddate. Click Refresh.4. Select the bank journal entry to be revalued, and then click Revalue to generate the revaluation entry. You will see the

Revaluation screen.5. At Journal, type or select the general journal. This is mandatory. The revaluation entries will be generated in this journal.

At Account, your company account will be shown by default as the bank entry is an injection of fresh capital into thecompany account. This is the account entered at Account iin SSystem/General/Settings/Company ddata ssettings.

6. Click OK for the system to start revaluating and exit.

Notice that at the exchange rate of EUR 1 = HKD 10.7002 on 08-05-2007, your company incurs a loss of EUR 481.97. Thisamount is calculated based on the following formula:

Investment amount in Euro based on exchange rate on 08-05-2007 = 1,000,000/10.7002= 93,456.20Loss from the revaluation = Investment amount based on the previous exchange rate - Investment amount based on the newexchange rate = 93,938.17 - 93,456.20= 481.97

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Revaluating prepayment

This functionality allows you to revalue prepayment transactions, which include allocated and unmatched payment/receiptterms, allocated and partially matched payment/receipt terms based on excess amount that is written off using the Balanceor Prepayment option, and also payment/receipt terms that have been matched on their own without having any invoice byusing the Prepayment option.

To rrevalue pprepayment:

1. Go to Finance/General lledger/Revaluation/Invoices && BBank/Cash. Select Prepayment aat RRevalue. 2. Type or select the currency code at Currency. This is mandatory.3. Under the Criteria section, type or select the exchange rate date at Exchange rrate ddate. Based on this date, the exchange

rate for the selected currency as defined in the exchange rate maintenance table will be displayed at Exchange rrate.4. Click Refresh to display the financial entries based on the defined criteria.5. Select the financial entry that you want to revalue and click Revalue. You will see the Revaluation screen.6. At Journal, type or select the general journal. This is mandatory. The revaluation entries will be generated in this journal.7. Click OK for the system to start revaluating and exit.

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Example of a prepayment revaluation

On 22-05-2008, your customer, 3 Meta BV, pays USD 1,000 as prepayment for a purchase transaction. On this date, the averageexchange rate is EUR 1 = USD 1.45. You enter the amount in the bank journal with the amount under the Cash iin column at USD1,000. The Euro amount based on the exchange rate is EUR 689.66. This amount is calculated by dividing 1,000 with 1.45.Under the G/L column, type or select the Accounts rreceivable general ledger account. Click Close to save the bank journal entryand to exit. On the same day, the exchange rate fluctuates to EUR 1 = USD 1.58 and you define this exchange rate in theexchange rate maintenance table. Revalue the prepayment on this day.

To rrevalue tthe pprepayment oon 222-005-22008:

1. Go to Finance/General lledger/Revaluation/Invoices && BBank/Cash. Select Prepayment aat RRevalue. 2. Type or select USD at Currency. This is mandatory.3. Under the Criteria section, type or select 22-005-22008 at Exchange rrate ddate. The Exchange rrate will be automatically

displayed as 1.580000.4. Click Refresh.5. Select the financial entry to be revalued, and then click Revalue to generate the revaluation entry. You will see the

Revaluation screen.6. At Journal, type or select the general journal. This is mandatory. The revaluation entries will be generated in this journal. 7. Click OK for the system to start revaluating and exit.

Notice that at the current exchange rate of EUR 1 = USD 1.58, your company incurs a profit of EUR 56.75 from the prepaymentrevaluation. This amount is calculated based on the following formula:

Prepayment amount in Euro based on current exchange rate = 1,000/1.58= 632.91Profit from the prepayment revaluation = Prepayment amount based on the average exchange rate - Prepayment amount basedon the current exchange rate = 689.66 - 632.91= EUR 56.75

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2.9 Processing Financial Entries

In Exact GGlobe, after the financial entries are created, you will need to process these entries so that you can close and bringforward the end balances to the next period. You need to process the financial entries so that you can close the periods andcreate new entries for the following period. Therefore, these processing are normally done on a month- end basis. Theprocessing involved are for standard journal entries and recurring journal entries.

The following are the topics relevant to this section:

• Processing of standard financial entries• Processing of recurring financial entries

Processing of standard financial entries

In the example for To process the standard financial entries, a general journal entry is selected.

To pprocess tthe sstandard ffinancial eentries:

1. Go to Finance/Entries/Process, select the general journal and click Zoom. You will see a list of general journal entriesgrouped by the selected general journal.

2. Select a general journal entry from the available list and click Process.3. The system will process the selected general journal entry and print the relevant posting reports. You will see the Report screen.4. Click Close in the Report screen to exit.

Tip: To identify the financial entries that need to be processed, you can make use of To bbe pprocessed rreport.This report is found at Finance/Entries/Reports/To bbe pprocessed.

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Example of standard financial entries processing

At the end of April 2007, your company wants to process all the financial entries of the month so that it can close the periodand subsequently create new financial entries in the following period.

To pprocess tthe sstandard ffinancial eentries oof AApril 22007:

1. Go to Finance/Entries/Process. 2. At Range, select Date if you want to define the range of dates for the entries based on the transaction date or Reporting

date to define the range of dates for the entries based on the reporting date. Next, type or select the date range from01-004-22007 to 30-004-22007.

3. Select the journals to view the financial entries recorded in the selected journals. In this example, select all the journalsas you want to view the financial entries recorded in all the journals in the month of April 2007. Click Refresh to displaythe financial entries based on the defined criteria.

4. Select the sales journal and click Zoom. You will see a list of sales journal entries grouped by the selected sales journal. Ifyou want to process all the financial entries in the selected journal without viewing the specific entries, you can directlyclick Process.

5. If you click Zoom, you can select a sales journal entry from the available list and click Process to process the selectedsales journal entry.

6. The system will process the selected sales journal entry and print the relevant posting reports. You will see the Report screen.7. Click Close in the Report screen to exit. 8. Repeat steps 4 - 7 to process the financial entries in the other journals.

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Processing of recurring financial entries

In the example for To process the recurring financial entries, a purchase journal entry is selected.

To pprocess tthe rrecurring ffinancial eentries:

1. Go to Finance/Entries/Recurring eentries/Process, select Purchase under Selection. 2. Under Entry, type or select the transaction date and reporting date at Transaction ddate and Reporting ddate respectively.

These dates determine when the recurring entries are processed to. 3. At Description under the Entry section, type an alternative description for the journal entries to be generated after the

processing of the recurring financial entries. If you do not type any description here, the description of the recurringentries will be displayed in the journal entries after the processing.

4. Select a recurring purchase journal and click Process. A message "1 Recurring entry lines : Processed" will be displayed.Click OK to exit.

Note: Once the recurring purchase entry is processed, the system will update the entries to the respective purchase journal atFinance/Entries/Purchase.

Tip: There is another way to retrieve and process the recurring entries that you have created. For example, whenyou create a new sales entry at Finance/Entries/Sales, you can click Recurring eentries to select the requiredrecurring sales entries after you have defined the debtor at the sales journal header. You can then process therecurring sales entries at Finance/Entries/Process. For more details on how to process the recurring entries usingthe standard method, see Processing of standard financial entries.

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Example of recurring entries processing

At the end of April 2007, your company wants to process the recurring entry entered in the general journal for the EUR 2,500.00monthly office rental you pay to the landlord.

To pprocess tthe rrecurring eentry ffor ooffice rrental:

1. Go to Finance/Entries/Recurring eentries/Process, and select Gen jjrnl. under Selection. 2. At Journal, type the journal which the recurring entry will be processed to. Type the description for the processed recurring

entry at Description. This description will appear under the Description column at the header section of the selectedjournal for the recurring entry after it is processed to the journal.

3. Under Entry, type or select the transaction date and reporting date at Transaction ddate and Reporting ddate respectively.These dates determine when the recurring entries are processed to. In this example, type 30-04-2007. By default, the twofields will show the current date.

4. Select the recurring general journal entry for the rental amount and click Process. A message "1 Recurring entry lines :Processed" will be displayed. Click OK to exit.

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2.10 Voiding Entries

There are times when you create incorrect financial transactions but do not want to delete these entries. In Exact GGlobe, you canmake use of the voiding entries function so that you can keep an audit trail of what has been voided. In the system, you canvoid entries at the journal level or during the matching of entries.

Important: You cannot reverse the process or edit the voided entries once the selected entries are voided.

There are two ways to void entries. The following topics are relevant to voiding entries:

• Voiding a single journal entry• Voiding matching entries

Voiding a single journal entry

In this section, there are six menu paths where you can void the journal entries:

• Finance/Entries/Bank/Cash• Finance/Entries/Purchase• Finance/Entries/Sales• Finance/Entries/General jjournal• Finance/Accounts ppayable/Cards• Finance/Accounts rreceivable/Cards

Note: In the example for To void a single journal entry, the general journal is used to void a single journal entry.

Tip: You can also void the journal entries at Finance/General LLedger/Cards. To void journal entries from thisscreen, you will need to select a general ledger account and click Display. In the general ledger card, you canclick Our rref. or Your rref. once you have selected a financial transaction. The Void button is enabled when youselect a transaction line.

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To vvoid aa ssingle jjournal eentry:

1. Go to Finance/Entries/General jjournal, and then select a general journal. 2. Click Zoom. You will see a list of general journal entries grouped by the selected general journal. 3. Select the general journal entry to void and click Void entries. A message "Void entries?" will be displayed. Click Yes to

void the journal entry and exit. You will see the Void screen.4. Type the reason for voiding at Reason and click OK to exit.

Note: If you have journal entries originated from other logistics modules including E-SSales oorder, E-IInvoice, E-PPurchase, E-Inventory MManagement, E-PProduction, E-SService MManagement, E-PPOS, and E-XXML SServer LLogistics, the Void eentries function onthe journal entry screens including Finance/Entries/General jjournal, Finance/Entries/Sales, Finance/Entries/Purchase, andFinance/Entries/Bank/Cash will not void these entries. Entries originated from logistics will not be voided. If you click Zoom onthe journal entry screen to view the entries in the journal and then select a logistics-originated entry, the Void eentries buttonwill be disabled. With this function, it will prevent users from voiding logistics-originated entries in the E-AAccount module andhelp users to ease their work on data maintenance as they do not need to do manual corrections in the logistics modules if theywere allowed to void the entries in the financial module of E-AAccount.

Tip: Provided you know which general journal entries should be voided, you can actually void all the entries fora selected general journal at Finance/Entries/General jjournal.

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Voiding matching entries

In this section, there are two menu paths where you can void the matching entries:

• Finance/Accounts ppayable/Cards• Finance/Accounts rreceivable/Cards

Note: In the example for To void matching entries, the accounts receivable card is used to void matching entries.

To vvoid mmatching eentries:

1. Go to Finance/Accounts rreceivable/Cards.2. Select a debtor and click Display. You will see the Debtor ccard screen.3. Click the Match button. You will see the Matching screen.4. Under the Invoices section, select the matching entries that you want to void.5. Click Void. You will see the Confirm :: VVoid screen. Click Void to void the selected matching entries. You will see another

Void screen.6. Type the reason for voiding at Reason, and click OK to exit.

Tip:You may need to void entries under some circumstances like wrong import of financial transactions or someother reasons which you do not want the transaction to be included in your business performance assessment.To do this, go to System/Checks/Cleanup/Void eentries to clean up the void entries.

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2.11 Financial Statements

When you have created the financial transactions for your company, you can make use of the cash flow statement and balancesheet or profit & loss reports to view the financial status of your company.

The following topics are relevant to this section:

• Viewing cash flow statement• Generating Balance/PL reports• Selecting/searching for transactions

Viewing cash flow statement

The cash flow statement allows you to view the incoming and outgoing cash flow of your company within a specified period. Bydefining the required date range, you can view a summary of payment and receipts. You can also view the payment and receiptsin detail when you select an amount and click Details. From the Details screen, you can click Edit to amend the selected cashflow entry.

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To vview ccash fflow sstatement:

1. Go to Finance/Reports/Cash fflow sstatement. 2. Under the Range 11 section at Date, type or select the date range to view the transactions amount within the specified date

range. 3. Select the Use check box under the Range 22 section to enable Date. This function will enable you to make data comparison

for the specified date range between Range 11 and Range 22. 4. At Date, type or select the date range to view the transactions amount within the specified date range. 5. If there are any changes in the date range, click Refresh to update the data.6. Click Close to exit.

From the example of the cash flow statement shown, you can view the cash flow comparison from the different date range intwo separate columns. In this statement, the cash flows are grouped by the beginning cash balance, cash flow - in, cash flow -out, cash from operations, and ending cash balance. These groupings are fixed and the system retrieves the required data andstores it in the respective groupings when you have made a payment or record a receipt at Cash fflow/Entries/Cash fflow.

For more details on how to create payment and receipts, see 2.4 Cash Inflow and Cash Outflow Process in the Cash FFlow user guide.

Generating Balance/PL reports

In the Balance/PL report, you can define the search criteria required for the system to generate and export the balance sheetand profit & loss statements to Microsoft Excel. At the same time, you can print a transaction list report that groups the balancesheet or profit & loss account type when you click Transaction llist. When the available reports are generated, you can view thestatus of each general ledger account within a specified period.

With the search criteria, you can choose to view only the reports by trial balance, balance sheet, or period balance sheet layout.You can also define the date range, categories, currencies, exchange rate, budget scenarios, resource, project, and so on. Youcan decide whether to include unprocessed financial transactions.

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To generate and display the Balance/PL reports, go to Finance/Reports/Balance/PL. Specify the required search criteria that youwant to include in the report and click Start. The reports are generated and exported to Microsoft Excel. At the same time, theselection criteria worksheet is also exported together with the reports.

From the examples of the balance sheet and profit & loss reports shown, all general ledger accounts inclusive of unprocessedfinancial transactions are retrieved and displayed. The general ledger accounts are grouped by expenses and revenues for theprofit & loss report, and by fixed assets, current assets, liquid assets, owner's equity, and short term liabilities for the balancesheet report. These groupings are derived from the maintenance accounts you created at Finance/General lledger/Chart oof GG/L'sunder the Reporting ggroup section. For more details on how to create general ledger accounts, see 1.3 Chart of General Ledgers.

The data is retrieved based on the specified period. The balance sheet and profit & loss reports displayed are based on theBalance ssheet layout. As you can see, these two reports display a comparison balances at the end of April 30, 2005 and April30, 2006 with a variance column in percentage format.

With these two reports, you can identify whether your company is making a profit or loss in the business. You can also makeuse of the comparison to identify whether there is a decrease or increase in the expenses or revenue. Such information can helpyou in the financial planning and budgeting of your company.

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Selecting/searching for transactions

It is possible for you to search for or select specific financial transactions that have been created in the system, and then viewor change the details of the transactions. This is common as there could be errors made when the transactions were recordedin the system or changes made on the details of the transactions after the entries have been made in the system. For example,the general ledger accounts used in the transactions, the Our ref or Your ref numbers, the resource who entered the transaction,or the description of the transaction.

To sselect/search ffor ttransactions aand tthen cchange tthe ddetails:

1. Go to Finance/General lledger/Select // SSearch. 2. At Range, select Date to search for transactions based on transaction dates or Reporting ddate to search for transactions

based on the reporting date of the transactions. Next, type or select the range of dates at Date to view the transactionswithin the specified date range.

3. You can further define your search criteria by selecting the journal at Journal to view transactions in the selected journal,defining the range of transactions' entry number at Entry nnumber, the general ledger accounts used in the transactions atGL aaccount, and the creditor or debtor accounts involved in the transactions at Account. In addition, you can also definemore criteria such as the Our ref, Your ref, type, subtype of the transactions in Our rref., Your rreference, Type, and Subtype,respectively. At Amount, you can select the required criteria and type the amount of transactions to view the transactionsthat match the defined amount criteria.

4. Click Refresh to view the transactions based on the defined criteria. 5. Select the transaction which you want to change the details and then click Change. You will see the Change screen. 6. Under the Change section, select Line, Our rref., Your rref., Entry, or Our rref. // EEntry to change the details entered in the

specific fields of the selected transaction in the Fields section. If you select Line, you can change the general ledgeraccount used in the transaction at Account, the resource who entered the transaction in the system at Resource, and thedescription of the transaction at Description. Depending on your selection in the Change section, you can change theinformation entered in the different fields in the Fields section.

7. After you have made the changes, click OK to save the changes.

Chapter 3 | Accounts Receivable and Payable Management

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Accounts Receivable andPayable Cards

Aging Analysis

Accounts Receivable and Payable Balance List and Reports

Credit Management

ACCOUNTS RECEIVABLE AND PAYABLE MANAGEMENT

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In this chapter, you learn to retrieve, generate, and view information of the creditors and debtors in your company by cards,reports, and graphs. You can also generate an aging analysis for all debtors and creditors. From this information, you canidentify open invoices, invoices to be received/to be invoiced, and invoice list.

At the same time, you learn to generate financial charges and reminders checklist, and print reminders for the respectivedebtors. Based on the aging analysis, you can define the amount of financial charges of the respective debtors when there isoutstanding payment.

The following topics are relevant to this chapter:

• Accounts receivable and payable cards• Accounts receivable and payable balance list and reports• Aging analysis• Credit management

3.1 Accounts Receivable and Payable Cards

The accounts receivable and payable cards allow you to filter and display the financial transactions of your debtors andcreditors. The displayed financial transactions are debtor or creditor entries that have been processed or not been processedto the respective general ledger accounts. You can also view unprocessed financial transactions from this card.

With the search criteria, you can filter the results to view sales invoices, sales credit notes, financial charges, payments,receipts, and other various transaction types. In addition, the general ledger card can be grouped by our reference and yourreference numbers, journal, resource, period, and more. You can also filter the results by specific data such as the order, generalledger account, journal, cost center, currency, and so on.

The flexibility of this function enables you to include the required information or exclude the unnecessary information so thatonly the desired financial transactions will be displayed in the card.

The following topics are relevant to this section:

• Displaying accounts receivable and payable cards

Note: In Exact GGlobe, the accounts receivable card is displayed as debtor card whereas the accounts payable card is displayedas creditor card.

3. Accounts Receivable and Payable Management

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Displaying accounts receivable card

To vview tthe ddebtor ccard:

1. Go to Finance/Accounts rreceivable/Cards, select a debtor account, and click Display. You will see the Debtor ccard screen.2. Define the relevant criteria and click Refresh. The results will be displayed.

Note: You may need to click Refresh at times in order for the system to refresh and retrieve the financial transactions based onthe latest defined criteria.

From the example of the debtor card shown, the Invoice llist at Display and the Sales iinvoice check box are selected. Therefore,the debtor financial transactions displayed are only for sales invoices. Based on the defined criteria, this debtor card is groupedby our reference and entry numbers. The Original iinvoice aamount EEUR column displays the original amount in the invoice basedon the sales order entry, the Invoice aamount-DDisc.&+Surc EEUR column displays the final invoice amount after deducting thediscount or adding the credit surcharge, while the Disc./Surc. EEUR column displays the amount of discounts or credit surcharge.You will also see similar columns in a creditor card if you select Invoice llist at Display.

As there are multiple currencies involved for this debtor, a sales invoice with foreign currency is also displayed if you have theE-MMulti ccurrency module in your license. From this card, you can view the total summarized invoice amount and receipts in thedefault currency as well as in the foreign currency if you select Card at Display. In addition, the system allows you to view therevaluation rate used in the revaluation process involving a specific account receivable if you have performed an invoicerevaluation at Finance/General lledger/Revaluation/Invoices && BBank/Cash. For more information, see Revaluating invoicesunder 2.8 Revaluation. With this function, you can analyze the exchange rate differences whenever there is a revaluationperformed on an invoice sent to a particular debtor.

To identify the outstanding invoices for the selected debtor, click Aging to view the aging analysis.

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In this card, you can view the detailed entries of each financial transaction. You can make use of Details to view the paymentdate, cash instrument, discounts, and so on. Click Our rref. or Your rref. after selecting a financial transaction to view the doubleentry transactions.

Besides printing the financial transactions for the selected debtor, you can also export this information to Microsoft Excel. Atthe same time, select the Graph button to print and to display the graph in Microsoft Excel.

You can link the available matching entries from the debtor card. Click Match to link the selected receipts with the outstandinginvoices in the Matching screen.

Displaying accounts payable card

To vview tthe ccreditor ccard:

1. Go to Finance/Accounts ppayable/Cards, select a creditor account, and click Display. You will see the Creditor ccard screen.2. Define the relevant criteria and click Refresh. The results will be displayed.

Note: You may need to click Refresh at times in order for the system to refresh and retrieve the financial transactions based onthe latest defined criteria.

From the example of the creditor card shown, you can view the summarized financial transactions linked to the creditor cardthat is grouped by the journal number. This result is displayed when you select Card aat DDisplay and Journal aat GGroup bby. At thesame time, as Payment transaction is selected, the system only retrieves and displays payment made to the creditor based onthe date range and its reporting date.

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If you have used multiple currencies in business transactions with your accounts payable which is possible through the E-MMultiCurrency module, you can view the revaluation rate used in the revaluation process involving a specific account payable if youhave performed an invoice revaluation at Finance/General lledger/Revaluation/Invoices && BBank/Cash. For more information,see Revaluating invoices under 2.8 Revaluation. The revaluation rate can be viewed on the creditor card if you select Card atDisplay. With this function, you can analyze the exchange rate differences whenever there is a revaluation performed on aninvoice sent by a particular creditor.

In this card, you can view the Aging aanalysis bby ddays screen when you click Aging. Here, you will see all the outstandingtransactions such as the outstanding purchase invoice, purchase credit note, and so on.

Besides printing the financial transactions for the selected creditor, you can also export this information to Microsoft Excel. Atthe same time, select the Graph button to print and to display the graph in Microsoft Excel.

You can link the available matching entries from the creditor card. Click Match to link the selected payments with theoutstanding invoices in the Matching screen.

3.2 Accounts Receivable and Payable Balance List and Reports

Other than the accounts receivable and payable cards, you can also make use of other reports in the system to retrievehistorical and outstanding financial transactions of the debtors and creditors. You can also generate graphical reports thatdisplay the financial transactions in a pie chart or column mode.

The following topics are relevant to this section:

• Displaying accounts receivable and payable balance list• Generating receivables report• Generating receivables history report• Generating receivables graphical report• Generating payables report• Generating payables history report• Generating payables graphical report

Displaying accounts receivable balance list

This section explains how you can view the balance listings for a specific or all debtors. After you have defined the criteria, theresults will display the balance listings in three separate analyses where you can group the listings by open invoices, invoicelist, and to be invoiced.

With the balance list, you will have a quick overview of the outstanding balance per debtor. You can also identify what has beenreceived or paid for each debtor. At the same time, a listing of what has been invoiced to the debtor can be displayed.

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The flexibility of this function enables you to include the required information or exclude the unnecessary information so thatonly the desired accounts receivable balance lists will be displayed.

To vview aaccounts rreceivable bbalance llist:

1. Go to Finance/Accounts rreceivable/Balance llist. 2. Define the required criteria that you want to include in the listing and click Display. The listings are displayed accordingly.

From the example of the accounts receivable balance list, a list of invoices is displayed when Invoice llist is selected at the Groupsection from the criteria. The listing displays all the invoices grouped by the latest date. In this listing, you can view the originalinvoice amount for each debtor under the Original iinvoice aamount column, the final invoice amount after deducting the discountor adding the credit surcharge under the Invoice aamount -DDisc.&+Surc column, the discount and surcharge amount under theDisc./Surc. column, the amount paid/received under the Receipt/Paid column, the outstanding balances under the Balancecolumn, and so on. You can also view the payment method and due date for each invoices.

You can export the balance list information to Microsoft Excel when you click Export. If you would like to view the double entrytransactions for each invoice, click Our rref. after you have selected an invoice. To view the list of financial transactions relatedto a debtor, select an invoice and then click Card. From the Transaction or Debtor ccard screen (after you click Our rref. or Cardrespectively), you can double-click each line of entry to zoom in on other transactions linked to the selected entry.

From this balance list, you can directly match the receipts with the outstanding invoices when you have gone through thebalance listing. Click Match to link the selected receipts with the outstanding invoices in the Matching screen.

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Displaying accounts payable balance list

This section explains how you can view balance listings for creditors. After you have defined the criteria, the results will displaythe balance listings in three separate analyses where you can group the listings by open invoices, invoice list, and invoices tobe received.

With the balance list, you will get an overview of the outstanding balance per creditor and/or employee. You can also identifywhat has been received or paid for each creditor. At the same time, a listing of what has been invoiced by the creditor will alsobe displayed.

The flexibility of this function enables you to include the required information or exclude the unnecessary information so thatonly the desired accounts payable balance lists will be displayed.

To vview aaccounts ppayable bbalance llist:

1. Go to Finance/Accounts ppayable/Balance llist. 2. Define the required criteria that you want to include in the listing and click Display. The listings are displayed accordingly.

From the example of the accounts payable balance list, a list of creditor accounts is displayed when Invoices tto bbe rreceived isselected at the Group section from the criteria. In this balance list, the information shows only credit payment and the invoicesdue dates are up to May 31, 2006.

You can view the outstanding balances in the columns of the aging analysis by days. The aging analysis by days displayed arebased on the default settings pre-defined at the general ledger settings. For more details on how to set up the default aginganalysis by days, see Setting up general ledger settings under 1.3 Chart of General Ledgers. Each of the aging analysis by dayscolumns displays the outstanding invoices amount that is due by days. Based on this information, you can identify how muchand how long you have owed the creditors.

You can export the balance list information to Microsoft Excel when you click Export. To view the list of financial transactionsrelated to a creditor, select a creditor account and then click Card.

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From this balance list, you can directly match the receipts with the outstanding invoices when you have gone through thebalance listing. Click Match to link the selected receipts with the outstanding invoices in the Matching screen. Instead ofmanually matching the entries, you can also make use of the Automatic mmatching function. The system will automatically matchthe outstanding invoices with the payments that your company has made.

Generating receivables report

In Exact GGlobe, you can use the receivables report to generate and display outstanding amount for debtors. This report displaysthe outstanding amount for all periods. At the same time, this report also displays all the receivables as grouped by debtor.

You can choose to display the receivables report in a summarized or detailed format. If you select List for the report layout, onlya list of receivables report is displayed. If you select Details, the system will display more criteria for you to define and narrowdown the search. The results will display detailed information on the outstanding items as grouped by the debtor. Both reportlayouts allow you to select and display the outstanding amount in a foreign currency.

You can also include the aging analysis by days in the receivables report. However, this option is applicable only when you selectDetails at Report under the Layout section. By default, the aging analysis in days is derived from the general ledger settings. Youcan modify the aging analysis in days if you would like to generate the receivables report with another aging analysis.

The flexibility of this function enables you to include the required information or exclude the unnecessary information so thatonly the desired outstanding amounts/receivables will be displayed in the receivables report.

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To ggenerate rreceivables rreports:

1. Go to Finance/Accounts rreceivable/Receivables/Receivables. 2. Define the required criteria that you want to include in the report and click Start. The report is generated and displayed

accordingly. From the Report screen, you can also generate a print copy of the receivables report by clicking Print.

From the example of the receivables report, the report layout selected is List. Therefore, only receivables listings are displayedin this report. As specific criteria for the debtor are defined, this report only displays financial transactions that are linked to thecompany called Software Solutions.

For each processed and unprocessed invoice, you can view the transaction and due date of each invoice under the Date andDue ddate columns. Based on the description under the Description column, you can identify the type of transactions that hasbeen made. You can also view the total of the original invoice amount with all currencies billed to debtors under the Originalcolumn. At the same time, you can identify the amount that has been received under the Amount ((EUR) column. This columndisplays the outstanding amount in the default currency.

The total received amount of the invoices is displayed by the individual debtor. At the end of the report, you can view the grandtotal received amount of the invoices of all the debtors. For example, please see the previous accounts receivables list reporton the highlighted totals.

Generating receivables history report

Besides generating and displaying the outstanding amount for each debtor, you can also make comparisons against previousyear's balances and budgets with the receivables history report.

By selecting Previous yyear or Budget, you can display the receivables history report in two separate layouts. With the previousyear column selected, the system will make comparisons in terms of percentage against previous year balances with theoutstanding amount from the selected periods. Similarly, the system will make comparisons in terms of percentage against theselected budget scenario with the outstanding amount from the selected periods.

In this report, you can also decide to display the outstanding amount with the factor and precision format. At the same time,you can include and view unprocessed invoices for the receivables history report. Select the Only wwith bbalance check box toview only closing balances that have balances.

There are some options available which allow you to specify the range so that you can display the required information for thereceivables history report. These include debtor code, classification, country, general ledger account, cost center, and more.

The flexibility of this function enables you to include the required information or exclude the unnecessary information so thatonly the desired outstanding amounts and comparisons will be displayed in the receivables history report.

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To ggenerate rreceivables hhistory rreport:

1. Go to Finance/Accounts rreceivable/Receivables/Receivables hhistory. 2. Define the required criteria that you want to include in the report and click Start. The report is generated and displayed

accordingly. From the Report screen, you can also generate a print copy of the receivables history report by clicking Print.

From the example of the receivables history report, the report column selected is Previous yyear. Therefore, the system displaysthe comparisons in percentage under the Growth column against the previous year. By comparing the closing balance and theprevious year amounts, you can view whether there is any growth in sales from the current selected period as compared to theprevious year.

In this report, all processed and unprocessed invoices are grouped by the selected debtors. The invoices are then categorizedby its different currencies. You can view the opening and closing balance of all invoices under the Opening bbalance and Closingbalance columns. You can also identify the amount that has been invoiced to the debtors and the amount that has been paidby the debtors to your company under the Invoiced and Paid columns.

The total opening balance, invoiced, paid, closing balance, and previous year amount of all the invoices are displayed by theindividual debtor. At the end of the report, you can view the grand total opening balance, invoiced, paid, closing balance, andprevious year amount of all the debtors. See the previous example of the receivables history report on the highlighted totals.

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Generating receivables graphical report

In Exact GGlobe, besides generating the outstanding amount in figures for the respective debtors, you can also generate anddisplay the outstanding amount in a graphical format. You can choose to display the graphical information as a pie chart orcolumn graphs.

You will only need to specify the debtor and classification range as well as whether to include blocked debtors for this reportsince the system will extract other required information.

To ggenerate rreceivables ggraphical rreport:

1. Go to Finance/Accounts rreceivable/Receivables/Receivables. 2. Define the required criteria that you want to include in the report and click Start. The report is generated and displayed in

Microsoft Excel.

From the example shown, the accounts receivable report is displayed in a column graph. In this report, the outstanding amountdisplayed is for all the debtors. As there are four different colors to represent the aging categories, the columns represent theoutstanding amount and the aging analysis.

When you view the report in Microsoft Excel, you are able to select listings from various options like country, debtors, andclassification. By selecting the required options, you can view the accounts receivable graphical report in different scenarios.

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Generating payables report

In Exact GGlobe, you can use the payables report to generate and display outstanding amount for the creditors. This report displaysthe outstanding amount for all periods. At the same time, this report also displays all the payables as grouped by creditor.

You can choose to display the payables report in a summarized or detailed format. If you select List for the report layout, onlya list of payables report is displayed. If you select Details, the system will display more criteria for you to define and narrowdown the search. The result will display detailed information on the outstanding items as grouped by creditor. Both reportlayouts allow you to select and display the outstanding amount in a foreign currency.

You can also include the aging analysis by days in the payables report. However, this option is applicable only when you selectDetails at Report under the Layout section. By default, the aging analysis in days is derived from the general ledger settings.You can modify the aging analysis in days if you want to generate the payables report with another aging analysis.

The flexibility of this function enables you to include the required information or exclude the unnecessary information so thatonly the desired outstanding items/payables will be displayed in the payables report.

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To ggenerate ppayables rreport:

1. Go to Finance/Accounts ppayable/Payables/Payables. 2. Define the required criteria that you want to include in the report and click Start. The report is generated and displayed

accordingly. From the Report screen, you can also generate a print copy of the payables report by clicking Print.

From the example of the payables report, the report layout selected is Details. Therefore, all the outstanding items for thecreditor are displayed in this report. As specific criteria for the creditor are defined, this report only displays the outstandingfinancial transactions that are linked to the company called Bits & Bytes.

For each processed and unprocessed invoice, you can view the transaction and due date of each invoice under the Date andDue ddate columns. Based on the description under the Description column, you can identify the type of transactions that hasbeen made. You can also view the total of the original invoice amount billed by creditors under the Original column. At the sametime, you can identify the amount that is owed to the creditor under the Outstanding and Outstanding ((EUR) columns.

As the aging analysis is selected for the report, you can view the total amount (by the aging days) owed to the individualcreditor. At the end of the report, you can view the grand total outstanding amount (by the aging days) of all the creditors. Seethe example in the previous outstanding items creditors report on the highlighted totals.

Generating payables history report

Besides generating and displaying the outstanding amounts for each creditor, you can also make comparisons against previousyear's balances and budgets with the payables history report.

By selecting Previous yyear or Budget, you can display the payables history report in two separate layouts. With the previousyear column selected, the system will make comparisons in terms of percentage against previous year balances with theoutstanding amount from the selected periods. Similarly, the system will make comparisons in terms of percentage against theselected budget scenario with the outstanding amount from the selected periods.

In this report, you can also decide to display the outstanding amount with the factor and precision format. At the same time,you can include and view unprocessed invoices for the payables history report. Select the Only wwith bbalance check box to viewonly closing balances that have balances.

There are some options available which allow you to specify the range so that you can display the required information for thepayables history report. These include creditor code, classification, country, general ledger account, cost center, and more.

The flexibility of this function enables you to include the required information or exclude the unnecessary information so thatonly the desired outstanding amount and comparisons will be displayed in the payables history report.

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To ggenerate ppayables hhistory rreport:

1. Go to Finance/Accounts ppayable/Payables/Payables hhistory. 2. Define the required criteria that you want to include in the report and click Start. The report is generated and displayed

accordingly. From the Report screen, you can also generate a print copy of the payables history report by clicking Print.

From the example of the payables history report, the report column selected is Previous yyear. Therefore, the system displays thecomparisons in percentage under the Growth column against the previous year. By comparing the closing balance and theprevious year amounts, you can view whether there is any growth in purchase from the existing period as compared to theprevious year.In this report, all processed invoices are grouped by the selected creditors. You can view the opening and closing balance of allinvoices under the Opening bbalance and Closing bbalance columns. You can also identify the amount that has been invoiced bythe creditors and the amount that has been paid to the creditors by your company under the Invoiced and Paid columns.

The grand total opening balance, invoiced, paid, closing balance, and previous year amount of all the creditors are displayedat the end of the report.

Generating payables graphical report

In Exact GGlobe, besides generating the outstanding amount in figures for the respective creditors, you can also generate and displaythe outstanding amount in graphical format. You can choose to display the graphical information as a pie chart or column graphs.

You will only need to specify the creditor and classification range as well as whether to include blocked creditors and the typeof data for this report since the system will extract other required information.

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To ggenerate ppayables ggraphical rreport:

1. Go to Finance/Accounts ppayable/Payables/Payables. 2. Define the required criteria that you want to include in the report and click Start. The report is generated and displayed in

Microsoft Excel.

From the example shown, the accounts payable report is displayed in a pie chart. In this report, the outstanding amountdisplayed is for a selected creditor. As there are three different colors to represent the aging categories, the pie chart representsthe outstanding amount and the aging analysis.

When you view the report in Microsoft Excel, you are able to select listings from various options like country, classification, andcreditors. By selecting the required options, you can view the accounts payable graphical report in different scenarios.

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3.3 Aging Analysis

In Exact GGlobe, there are two aging analysis reports, one for accounts receivable and one for accounts payable, which allow youto check the outstanding payment or receipts. With these two reports, you can have an overview on which payment or receiptsare behind schedule.

The following topic is relevant to this section:

• Generating aging analysis for accounts receivable and payable reports

Generating aging analysis for accounts receivable report

The aging analysis for accounts receivable report provides an overview of all receipts that have not been received by yourcompany. By defining the criteria, you can sort the outstanding receipts by debtor code, name, post code, classification,country, or due date. The aging analysis can be grouped by invoice date, due date, or reporting date. You can also change theaging periods to suit your report analysis preferences.

There are some available options which allow you to specify the range so that you can display the required information of theaging analysis for the accounts receivable report. These include the debtor code, postcode, classification, project, cost center,resource, and so on. The report allows you to select and display the summarized outstanding amount in a foreign currency. TheSummary: FForeign ccurrency check box is enabled only when you select Invoice ccurrency aat AAll - DDefault ccurrency.

The flexibility of this function enables you to include the required information or exclude the unnecessary information so thatonly the desired outstanding receivables will be displayed in the aging analysis debtors report.

Note: Once you have generated this report, the system will display an example of the report as follows:

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To ggenerate aaging aanalysis ffor aaccounts rreceivable rreport:

1. Go to Finance/Accounts rreceivable/Receivables/Aging aanalysis. 2. Define the required criteria that you want to include in the report and click Start. The report is generated and displayed

accordingly. From the Report screen, you can also print a copy of the aging analysis debtors report by clicking Print.

From the example of the aging analysis debtors report, the report layout is sorted by classification and debtor. As the mediumenterprise classification is defined, this report only displays the aging analysis transactions linked to the company calledUrsus Major.

Since there are more criteria defined, the report displays aging analysis by the reporting date. You can define the aging analysisdebtors report by invoice or due date if you do not want to view the aging analysis by the reporting date. As All - IInvoice ccurrencyis selected at Invoice ccurrency, all currencies are displayed in the aging analysis report.

Based on the previous report, there are two types of currencies transactions linked to the debtor. One transaction is in USDwhereas the rest are in EUR. A separate row for transactions in USD is displayed right after the default currency.

The selected reference date is March 31, 2006. Therefore, the aging analysis debtors report only displays invoices dated March31, 2006 and earlier. For each processed and unprocessed receivable, you can view the total outstanding amount for each entryat Outstanding aamount column. You can view the total amount (by the aging periods) owed by the debtor at the end of thereport. At the end of the report, you can view the total outstanding amount grouped by classification followed by the grand totalif you have more than one classification and debtor.

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Generating aging analysis for accounts payable report

The aging analysis for accounts payable report provides an overview of payment that has not been paid by your company. Bydefining the criteria, you can sort the outstanding payment by creditor code, name, post code, classification, country, or duedate. The aging analysis can be grouped by invoice date, due date, or reporting date. You can also change the aging periods tosuit your report analysis preferences.

There are some available options which allow you to specify the range so that you can display the required information of theaging analysis for the accounts payable report. These include creditor name, classification, project, cost center, resource, andso on. The report allows you to select and display the summarized outstanding amount in a foreign currency. The Summary:Foreign ccurrency check box is enabled only when you select Invoice ccurrency at All - DDefault ccurrency.

The flexibility of this function enables you to include the required information or exclude the unnecessary information so thatonly the desired outstanding payables will be displayed in the aging analysis creditors report.

Note: Once you have generated this report, the system will display an example of the report as follows:

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To ggenerate aaging aanalysis ffor aaccounts ppayable rreport:

1. Go to Finance/Accounts ppayable/Payables/Aging aanalysis. 2. Define the required criteria that you want to include in the report and click Start. The report is generated and displayed

accordingly. From the Report screen, you can also print a copy of the aging analysis creditors report by clicking Print.

From the example of the aging analysis creditors report, the report layout is sorted by creditor code. As specific criteria for thecreditor code are defined, this report displays only the aging analysis transactions linked to the company called Volkswagen.

The report aging analysis is grouped by due date and the selected reference date is June 19, 2006. Therefore, the aging analysiscreditors report displays invoices with the due date of June 19, 2006 and earlier.

For each processed and unprocessed payable, you can view the outstanding amounts by the aging periods. You can view thetotal amount (by the aging periods) owed to the creditor at the end of the report. As the Summary: FForeign ccurrency check boxis selected, you can view the total outstanding amount by different currencies for each creditor. The grand total outstandingamount grouped by different currencies for all creditors are also displayed if you have more than one creditor.

3.4 Credit Management

In Exact GGlobe, you can generate financial charges and print reminder for debtors if there are invoices that are overdue.

The following topics are relevant to this section:

• Generating reminder checklist• Printing reminder• Generating financial charges

Generating reminder checklist

The reminder checklist provides an overview of the list of payment reminder for outstanding invoices by debtors. Eachoutstanding invoice is listed and grouped under the debtor you select. From the list of reminder displayed, you can identify thedebtors who need reminders on their late payment.

By defining the criteria, you can filter the results to group by invoice total or terms. You can include outstanding items and/orunmatched payments in the reminder checklist.

There are some available options which allow you to specify the range so that you can display the required information for thereminder checklist. This includes debtor code, language, classification, and due date. You can also sort the order of thepayment reminder by debtor, name, address, postcode, or city.

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Note: Once you have generated this report, the system will display an example of the report as follows:

To ggenerate rreminder cchecklist:

1. Go to Finance/Accounts rreceivable/Reminders/Checklist. 2. Define the required criteria that you want to include in the report and click Start. The report is generated and displayed

accordingly. From the Checklist screen, you can also print a copy of the checklist report by clicking Print.

From the example of the reminder checklist report, the report layout is grouped by debtor. As specific criteria for the debtors aredefined, this report displays only the reminder checklist for the companies called Flopshop BV and Software Solutions.

The checklist is grouped by Invoice ttotal. Therefore, you can only view the total invoices that are overdue. You can view the totaloutstanding amount invoiced to debtors under the Invoiced PPayment CCredit column. At the same time, you can identify theamount that has not been paid by the debtors under the Overdue OOutstanding column.

The total overdue amount for each debtor is displayed at the end of the report for each of the particular debtor. At the end ofthe report, you can view the grand total of overdue amounts if you have more than one debtor.

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Printing reminder

In Exact GGlobe, you can print reminder letters for all or selected debtors for their overdue payment. With the criteria, you candefine the reminder date that will be sent to the debtors. You can also include debtors with credit balance. There are someavailable options which allow you to specify the range so that you can display and identify the debtors that have outstandingamount. These include debtor code, language, classification, and due date. You can also sort the order of the payment reminderby debtor, name, address, postcode, or city.

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To pprint rreminder:

1. Go to Finance/Accounts rreceivable/Reminder/Print. 2. Define the required criteria in the Output, Debtor sselection, and Outstanding sections and click Display to view the

outstanding amounts for debtors. You will see the Reminder screen. 3. Select one or all of the debtors and click Process. You will see the Reminder :: OOutput screen.4. Select the required criteria to determine the layout of the reminder letter and the printer the letter will be printed to. 5. If you want to send the reminder via e-mail, select E-mmail at Output. With this option, the reminder will be attached in the

e-mail in HTML or PDF format depending on the setting you have defined in E-mmail aand sstore aattachment aas under theGeneral section on the Documents ssettings screen. For more information, see 1.1 System Settings - To set up documentsettings.

6. Click Start to generate the final print of the reminder letter or send the reminder to the debtor via the e-mail.

From the example of the reminder letter, the reminder is printed for the selected debtor called Software Solutions. The employeewho is responsible for this account is Jacky Howard. The letter displays the total overdue amount by invoice. If you have selectedthe Include bblocked iitems check box under the Outstanding section to include transactions using the blocked payment term inthe payment reminder while defining the criteria to display the outstanding amounts as described in step 2, you will be able tosee the total blocked amount of a debtor printed on the reminder.

Generating financial charges

With the financial charges function, the system will create and calculate the necessary charges for all or the selected debtorsaccording to your defined criteria and charges created. Based on the overdue invoices, you can define the minimum andmaximum charges that will apply to the debtors.

You can then select the debtors or invoices to process as financial transactions. The system will generate the necessary financialcharges and process to the selected journal.

Tip: The displayed layouts can be defined at System/General/Settings. Under Document settings¸ at the Financialsection, you can define a layout for the reminder at Reminder and link a specific layout to a specific debtor. Inaddition you can also define all the fields that you want to use in the layouts.

To ggenerate ffinancial ccharges:

1. Go to Finance/Accounts rreceivable/Financial ccharge. 2. Define the required criteria that you want the system to include under the Debtor sselection section3. Under the Financial ccharge section, type the first and second financial charges that you intend to charge debtors at 1st

finance ccharge %% and 2nd ffinance ccharge %% respectively. 4. Define the minimum and maximum charges at Minimum ccharge and Maximum ccharge respectively for all or the selected

debtors. Click Start to calculate and generate the necessary charges to the respective debtors. You will see the Financialcharge screen.

5. Select a debtor and click Zoom. You will see a list of invoices linked to the selected debtor. Select to process the selectedinvoice or all invoices as a financial transaction. You will see the Financial ccharge :: OOutput screen.

6. At Process, select Final to print the final calculation and results of the financial charges. 7. Type or select a journal at Journal to process and store the financial transactions. 8. Type or select the date of financial charges created at Date. 9. By default, the description is displayed as "Financial charge" at Description. You can modify the description if you need to

create another. Click Start to print and generate the financial charges to the debtors. You will see the Financial ccharge -Details rreport. Click Print to print the report or Close to exit.

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Tip: Select Trial at Process for a trial print of the financial charges if you want to view only the amount the debtorsare charged. The system will not process and create any financial transactions when you select this option.

Chapter 4 | Management Information

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Financial Analysis

Audit Trail

Exporting Financial Informationto Microsoft Excel

MANAGEMENT INFORMATION

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Exact GGlobe lets you prepare information for the management in a variety of details and presentations. You can customize andretrieve various reports for analysis, export them to Microsoft Excel, and monitor the audit trail for all conducted transactions.The following sections will explain the functionalities in further details:

• Financial analysis• Exporting financial information to Microsoft Excel• Audit trail

4.1 Financial Analysis

You can make a good investment decision by conducting financial analysis using Exact GGlobe. It allows you to analyze theaccounts and the economic prospects of your organization by conducting accounting ratio financial analysis. The analysis canbe in any currencies and spread over any period based on the income statement and balance sheet. The following applicationswill assist you with your financial analysis:

• Interactive balance• Pivot analysis• Analytical accounting

From the analysis, you can measure and compare the profitability, liquidity, stability, efficiency, and return of investment (ROI)using ratios.

Interactive balance

The Interactive Balance report lets you view all account balances for any specified period in various layouts. The layoutsavailable are trial balance, balance sheet, balance sheet/profit & loss, profit & loss, and date differences. It also allows you tocompare the information with different budget scenarios or with information from the previous years. To view the InteractiveBalance report, go to Finance/Reports/Interactive bbalance. As an example, we will filter the account balances between January1, 2005 and December 31, 2005 and compare the results with the account balances for year 2004.

To ggenerate IInteractive BBalance rreport:

1. Go to Finance/Reports/Interactive bbalance.2. Define the relevant criteria: Reporting ddate, Layout, Presentation, Scale and Comparison. If you use the criteria in the

Advanced mode, you will be able to generate a more specific report by determining the debtors, creditors, item,warehouse, cost center layout, cost center, cost unit, project, and resource. Type or select more options in the Showsection to display your report in various combinations.

3. Click Start to generate the report.4. Click Close to exit.

4. Management Information

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When you click Start, you will see the account balances for the specified period as shown below:

In this case, you will see the account balance for the period of January 1, 2005 to March 31, 2005 which is shown on a monthlyscale. The Start bbalance ((2005) shows the starting balance for year 2005 while Balance ((2005) shows the balance per year forthe year 2005 up to the specified period. Balance ((2005)-11, 2 and 3 respectively shows the balance for the month of January,February, and March 2005.

The interactive aspect of this overview means that you can retrieve more information about a particular general ledger accountby clicking the Balance llist or Card button. The Balance llist button is enabled only when you select the creditors' accountspayable or debtors' accounts receivable. To select the individual account payable or receivable, you need to list the accountbalances by general ledgers by specifying in the Category box. Click Balance llist to see the outstanding amount. A sample isshown in the following screen:

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In this example, the balance list report for general ledger account 1600-Accounts payable is grouped by creditor for alltransaction types. We can conclude that for general ledger account 1600, the account number 1000 belonging to a creditorcalled Bits & Bytes and classified as an active and large supplier account, has a total outstanding amount of EUR 61,025.30and is payable in five terms. The columns 0-330, 31-660, 60-990 and >90 indicate the outstanding payment in days from the invoicedate. 0-330 indicates that this is an outstanding payment of between 0 to 30 days, and so forth. In this case, the payment hasbeen outstanding for more than 90 days from the invoice date.

Click Close to return to the account balances result screen where you can view the result from the application itself or export thereport to Microsoft Excel and print it out by using the Print and Export buttons. To view the general ledger transaction card of theselected transaction within the date range, click Card. If you wish to maintain one of the general ledger accounts, click Maintain.

Pivot analysis

A pivot analysis is an interactive summary of analysis derived from a comparison between customizable variables. It allows you tovisualize the actual administrative information rapidly and effectively. You can visualize the data in a single administration orcompare the financial details between different business segments. Based on the comparisons, you can generate an analysis reportaccording to your preferences. You can also save the customized report template(s) for future use. To generate a pivot analysis, go toFinance/Reports/Pivot aanalysis. Here, you will be able to present the relevant data using the various options provided.

To ggenerate aa ppivot aanalysis:

1. Go to Finance/Reports/Pivot aanalysis.2. Click to select the required field(s) to be added to Axis-XX, Axis-YY, and/or Filter. Select a field and click To :: XX (to move

the field to Axis XX), To :: YY (to move the field to Axis YY), or To: FFilter (to move the field to the Filter section). You can add asmany fields as necessary.

3. Click Columns to display the Format ccolumns box. The Actual check box will be pre-selected. Select the check boxes todefine the columns that you want to view in the report. Then, click Close to return to the pivot analysis report.

4. At Year under the Filter section, type the year of the pivot analysis report that you want to view. Define other relevantcriteria that you want to include in the pivot analysis report, and then click Refresh. The details that match the definedcriteria will be displayed in the report.

5. Click Close to exit.

As an example, we will use Pivot aanalysis to find out the percentage value of purchase contributed by different customers andfrom different sales orders.

Tip: You can define the columns to be displayed in the interactive balance report by clicking Columns. Forexample, you can select Manually aat SSelection in the Define ccolumns screen, and then select the Openingbalance check box to display the Start bbalance column in the interactive balance report.

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From the screen, you will see an example of the total sales made from two different customers, namely Andy's Mountain Houseand Landmark Distribution. You can right-click on the variable to remove, filter or define whether you want to display the code,description or both. In this example, if you right click Customer, you can choose to display the customer code and/ordescription. You can use the buttons in the toolbar to start a new analysis, open a saved template, define the column settings,sort the listing, or clear the defined criteria. Besides, you can also show or hide the filter section, the Axis-X and Axis-Y listingpanel, company database panel, or the field selection screen.

The total sales made from Andy's Mountain House is EUR 11,898.89 and from Landmark Distribution is EUR 546.62 as statedat the bottom of the screen. Under the Actual column, EUR 11,007.60 is the total sales amount made from Andy's MountainHouse from the sales order no. 20300007. The figures in the Total: AActual column shows the total sales amount for every salesorder while the last figure, which is EUR 12,445.51 is the total sales amount made from both Andy's Mountain House andLandmark Distribution from all sales orders.

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The figures in the Perc. YY column are the percentage value contributed by a specific sales order from a specific customer. Theyare derived from the following formula:

Perc. Y = The actual value of a specific sales order x 100The total sales from a specific customer

Therefore, the percentage value contributed by the sales order no. 20300007 from Andy's Mountain House is calculated as:

Perc. Y = The actual value of sales order no. 20300007 from Andy's Mountain House x 100The total sales from Andy's Mountain House

= 11,007.60 x 10011,898.89

= 92.51

This means that the sales order no. 20300007 contributes 92.51% of the sales made from Andy's Mountain House.

On the other hand, the figures in Perc. XX are the percentage value contributed by a specific sales order from all customers. Thecalculation is as follows:

Perc. X = The actual value of a specific sales order x 100The total value of purchase from a specific sales order

Therefore, the percentage value contributed by the sales order no. 20300007 from all customers is calculated as below:

Perc. X = The actual value of sales order no. 20300007 x 100The total sales from sales order no .20300007

= 11,007.60 x 10011,007.60

= 100

This indicates that 100% of the sales is made by Andy's Mountain House from the sales order no. 20300007. This is becausea sales order is usually from one customer only.

You may also export the data to Microsoft Excel so that you can edit the information or present the data in a chart. If you clickDetails, you can further analyze the details of a transaction amount as shown in the following screen.

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Analytical accounting

Analytical aaccounting allows you to change or add information to the analytical information of a financial transaction withoutgoing through every single entry. You can register a financial transaction with the basic information first and then add moredetailed information at a later stage. This feature is very useful because a resource may not be aware of all the active projects.Previously, the resource will not enter a financial transaction into the system until complete information has been gathered fromother departments. In some instances, even though the resource is aware of the activities, he will still have to wait for decisionson the cost allocation of a particular project at a later stage. As a result, the system will not have the latest information on atimely basis. Besides changing and adding information, it is also possible to defer and/or apportion the transaction amountover a number of periods by percentage. You can do these at Finance/General LLedger/Analytical AAccounting.

To see a specific financial transaction, define the date range, general ledger account, budget scenario, grouping, currency, andtype of accounts. Select the Unprocessed check box to include the unprocessed transactions in the list. Choose whether youwant to list transactions from the profit & loss statement, balance sheet, or both by selecting the corresponding check boxes.Click Filter to show more options so that you can refine the displayed results to your preference. Here, you can type or selectmore specific information such as reference numbers, account information, project name, and inventory details. In thisexample, we will filter all the transactions for the general ledger account 3010.

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You can make the changes to the transactions one by one or to a few transactions concurrently. In this example, Group bby is setto None. Therefore, all the transactions for G/L number 3010 are listed on the same screen. Consequently, Zoom is disabled.

At the bottom of the screen, you will see Total aamount, which displays the total balance amount of the relevant financialtransactions with the same grouping. In this case, the total balance amount for all transactions in G/L 3010 is EUR 101,860.00.Selected shows the outstanding amount for the selected entry lines only, which in this case is EUR 37,500.00.

You may make changes to an individual or a group of transactions. If you have not grouped the transactions, you can still makechanges to a group of transactions by selecting more than one transaction concurrently. If you let the system do the groupingfor you, it will select all transactions with the same criteria, which in this case is the G/L. However, if you manually select thetransactions to be grouped together, you will be able to choose only certain transactions in the specific G/L. To make changesto a single or a group of transactions, click Change. You will see the following screen:

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For this example, the resource will be changed to Dick Janson. You can do this by typing or selecting the corresponding resourceID in the Resource box. At the same time, you may also apportion the transaction amount over a number of periods. To do this,just select the Allocate check box. Once selected, you have to enter the allocation details. In this case, 50% of EUR 37,500.00will be allocated to G/L 3010 and split within two months at 50% each, beginning May 2, 2004. When you click Start, you willsee the Deferred ccost: PPreview screen with the allocation details.

From the screen, you will see that 50% of EUR 37,500.00 (that is EUR 18,750.00) is split into two transactions of EUR 9,375.00each. Click Continue to continue the allocation process.

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4.2 Exporting Financial Information to Microsoft Excel

You can use Exact GGlobe to export your financial statements to Microsoft Excel. This section will describe the exporting offinancial statements.

Exporting financial data

At the end of the year, you need to draw up a statement of accounts for your accountant. In Exact GGlobe, you can export allfinancial data to a file from Finance/Reports/Export/Export ffinancial sstatement. The data will be in Comma Separated Value(CSV) file format which consists of general ledger accounts and balances (debit and credit) of the financial year.

To eexport ffinancial sstatements:

1. Go to Finance/Reports/Export/Export ffinancial sstatement. 2. Select the relevant financial year of the financial data to be exported.3. Type or select the date range of the financial data to be exported or select the All check box for all dates. Select the

Applicable ffor hhistorical yyears check box if you want the selected date range to be applicable for both the current andhistorical years that exist in the system. This check box is enabled only if a date range is provided and the All check box isnot selected in Date. However, if you enter a date range and select the Applicable ffor hhistorical yyears checkbox, the daterange will be applicable to both the current financial year and historical years. On the other hand, if you enter a date rangebut clear the Applicable ffor hhistorical yyears checkbox, the date range will be applicable to the current financial year only.

4. Type the export file name for the export to be used for the financial data generated.5. Type or select the file path in which you want to save the file. 6. Click Export to export the file. A message appears to inform you that the export is successful. Click OK to acknowledge

and Close to exit.

For example, we will export the financial report for year 2005. At Finance/Reports/Export/Export ffinancial sstatement, select thefinancial year. You also need to name the file and select the path to save it.

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When you click Export, the financial data is saved at the specified location in File ppath using the defined name at File nname. Youcan view the file, which is in CSV format, in Microsoft Excel.

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4.3 Audit Trail

The E-FFinance module of Exact GGlobe allows you to do periodical tracking of your entries for audit trail purposes. This sectionconsists of the following:

• Registering entries• Registering processed entries• Viewing voided entries• Viewing matched entries• Viewing processed and reopened entries

Registering entries

At System/Finance/Register/Entries, you can see an overview of all the created, matched, and processed entries posted inExact GGlobe. For example, to filter the entries created between January 1, 2003 and January 3, 2003, type or select thecorresponding dates at Date ccreated. When you click Refresh, you will see a list of resources that have created entries withinthe specified date as shown in the following screen.

The Entries column indicates the total number of entries that each ofthe resource has created. You will know the total debit and creditamount from the Debit and Credit column. To find out what the EUR50,000 debit and credit amount made by Carel Stevens consists of,click Zoom.

The amount is actually from an entry made to journal 25. Click Zoomagain to view a listing of the breakdown of the entries made to journal 25.

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For each entry, the system will show the individual our ref as well as theactual debit and credit amount. If you want to see the details of thelargest entry amount (EUR 11,174) Carel Stevens had made betweenJanuary 1, 2003 and January 3, 2003 in journal 25, click Entry.

However, if you click the Change button, you can change the details of the listed transactions as shown in the following screen.

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You have the option to change only the line that you have selected at System/Finance/Register/Entries. Alternatively, you canchange the transactions which have a similar our ref., your ref., entry, and/or our ref. to the selected line. Depending on yourselection at the Change section at the Change screen, among the details that you can change are the general ledger account,resource, description, your reference, cost center, cost unit, and transaction type.

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Registering processed entries

This application shows a list of processed financial entries complete with the resources who processed it and the time ofprocessing. To view processed entries, go to System/Finance/Register/Processed.

To search for processed entries created between January 1, 2003 andJanuary 3, 2003, type the date range and click Refresh. You will see thatwithin that period, a warehouse staff named Arjan van Delft hadprocessed an entry for an amount of EUR 9,367.50. To view the detailsof the processed entry, click Zoom.

From the previous screen, you will know that the amount of EUR9,367.50 is from an entry made to journal 99. Click Zoom again to seethe detail of that entry.

You can summarize that Arjan van Delft had processed only one entryat the amount of EUR 9,367.50 which was created on March 3, 2003 forjournal 99. Click Entry to view the entries.

Viewing voided entries

You void entries when you have entries that are not created correctly. The void feature enables you to remove a previouslyverified or posted entry from the system. Entries that are marked as voided become ineffectual and will not appear on anyprofit or loss statement. However the voided entry is retained in system tables. To retrieve and view all the voided systementries, go to System/Finance/Register/Void. To filter voided entries created on December 31, 2003, type the correspondingdate and click Refresh.

You will get a list of transactions with voided entries. Select one ofthe transactions and click Entry to view its detailed transaction.

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Since the report is purely used toview voided entries, editing ofinformation contained in the voidedentries is not allowed.

Viewing matched entries

In the usual accounting practices, you have to match invoices and payments to each of the recorded transactions. You can seean overview of all the matched entries at System/Finance/Register/Match rregister. To search for matched entries in the year2003, type or select the date and click Refresh.

In this example as shown in the previous screen, only Julia Geller has matched entries within that period. From the columns,you can tell that she has matched 39 statements, 50 invoices, and 39 entries at the amount of EUR 493,956.59. To find whichaccounts made up the total value of EUR 493,956.59, highlight the entry line and click Zoom.

From the list, you can see all the matched accountsincluding the supplier and its status. In this example,you know that account number 60013 registered to anactive customer named Bicycle World has one matchedstatement at an amount of EUR 9,799.65. To see thedetails of the matched statement, click Zoom again.

From the previous screen, you will see that thematched statement is created on February 18, 2003for a cash receipt with the following details: our ref.number 3000005, your ref. number 20300001 and adescription of 60013. To view further details of thecash receipt, click Details.

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Viewing processed and reopened entries

Apart from viewing processed entries, Exact GGlobe also allows you to view processed and reopened entries. You can do this atSystem/Finance/Register/Processed aand rreopened. Type or select the relevant criteria to search for unprocessed entries. As anexample, you will see the following screen when you click Refresh.

From here, you can see that there is an unprocessed entryregistered to journal 20 with a debit and credit amount ofEUR 0.00. To find out which particular entry that is, clickZoom again.

From the result, you know that the actual unprocessedentry is entry number 6200001 with an our ref of100000182. It was modified or reopened on May 29,2006. You can further view the transaction details of theentry by clicking Transaction.

From the list of G/L accounts, you can trace who modified the entry and when.

Chapter 5 | Advanced Features

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ADVANCED FEATURES

Financial Budgeting

Using External Numbering

Cost Centers and Cost UnitsManagement

Processing Balance SheetGeneral Ledger Accounts

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FEATURES

Besides the basic features, Exact GGlobe provides advanced features to handle additional functions such as financial budgeting,cost centers, and cost units management. These features complement the basic functionalities provided by Exact GGlobe andthus improve the efficiency of an organization. As mentioned earlier, the E-FFinance module contains at least the SE0110-EE-Password and SE1000-EE-AAccount. However, to utilize the advanced features, you need these additional licenses:

• SE1050-EE-BBudgets - For creating and maintaining budget scenarios and budget• SE1055-EE-CCost AAnalysis - For managing your cost centers and cost units

The following sections will explain the functionalities in further details:

• Financial budgeting• Cost centers and cost units management• Using external numbering• Processing balance sheet general ledger accounts

5.1 Financial Budgeting

For better financial management, we need to be able to create a budget planning and measure our actual business performanceagainst our initial budget planning. As your business expands, it is important to have a precise planning of your operations. Agood example is drawing up the budget for projects to allow an estimation of the revenue and cost of a certain project. Inaddition, a budget gives you a better insight over the performance of your employees and your organization as a whole. You willlearn about budget and budget scenarios in further details in the following sub-sections:

• Maintaining budget scenarios• Maintaining budget

5. Advanced Features

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Maintaining budget scenarios

In order to effectively monitor your business performance based on various situations, Exact GGlobe provides a function to createand maintain budget scenarios. You can set the duration of a scenario through which the budget will be used to compare withthe actual revenue or expenses. To create or maintain a budget scenario, go to System/Finance/Budget sscenarios. Thisapplication is available only if you have the SE1050-EE-BBudget module.

By default, all new budget scenarios have the "Active'' status. An "Active'' budget scenario is available for use to show thebudgeted amounts to be compared with the actual revenue and expenses. You can maintain the budget scenario status usingthe buttons at the bottom of the screen. Click Deactivate to deactivate an active budget scenario. After deactivation, the statusof the active budget scenario will change from "Active'' to "Free''. A "Free" budget scenario is not available for use. Click Activateto activate a "Free'' budget scenario. Once activated, the status of the budget scenario will revert to "Active''. You can onlyactivate one budget scenario per period. If there are two free budget scenarios which overlap in periods, you can only activateone of them. To block a "Free'' budget scenario, click Block. A budget scenario with the "Block'' status cannot be used in theadministration. Similarly, when you click Unblock, you will unblock a blocked budget scenario and the status is now "Free''instead of "Block''.

To ccreate aand mmaintain bbudget sscenarios:

1. Go to System/Finance/Budget sscenarios.2. Click New to create a new budget scenario or Open to maintain an existing one.3. To create a new budget scenario, define the relevant criteria: Name of budget scenario, its description, the start year with

the starting period, and the end year with the final period. To maintain an existing budget scenario, change the necessaryinformation. Click Save, and then Close to exit.

Case sscenario 11:

To create a budget scenario for a 20% growth in the year 2006, go to System/Finance/Budget sscenarios and click New.

In the Budget sscenarios screen, type the name of the budgetscenario and a brief description for it. Type "2006" at Financial yyearand To ffinancial yyear and add "1" and "12" at the Period boxesrespectively. When you click Save, the new budget scenario is listedat System/Finance/Budget sscenarios.

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Maintaining budget

As your business expands, it is important to have a precise planning of your operations. In addition, budgeting gives you abetter insight over the performance of your employees and organization as a whole. After you have created budget scenarios,you can enter your budgeted revenue or cost for a particular budget. This amount will be used to compare with the actualrevenue or cost to measure the performance of your business. You can enter a new budget at System/Finance/Budgets. To dothis, you also need the SE1050 EE-BBudgets license in your E-FFinance module.

To ccreate aand mmaintain bbudget:

1. Go to System/Finance/Budgets.2. Type or select a budget scenario to be used in the budget.3. Click New to create a new budget or Open to maintain an existing one.4. To create a new budget, define at least the budget scenario, date, cost quantity, cost amount, and the corresponding G/L

account. To maintain an existing budget, change the necessary information. Click Save, and then Close to exit.

Case sscenario:

We will create a budget for the budget scenario AP 2006 with the budget cost quantity of 1,000 and budget amount of EUR5,000.00 to the G/L account 7000 Cost of goods sold. To begin, go to System/Finance/Budgets and click New.

Fill in the necessary information.Once completed, click Save to savethe new budget. In this scenario,since we have filled in both thebudgeted cost and revenue, youwill see two lines of budget listed atSystem/Finance/Budgets. If youhave filled in the budget for boththe cost and revenue, you will seetwo lines. You can zoom into thedetails of the budget or print it outfor your reference.

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5.2 Cost Centers and Cost Units Management

Exact GGlobe allows you to manage your cost centers and cost units effectively. You can even allocate cost to different cost centersand process them in simple steps. To maintain the cost centers and cost units, you need an additional module called SE1055-E-CCost AAnalysis. The following sections will describe the processes in further details:

• Maintaining cost units• Maintaining cost centers• Maintaining cost center categories• Allocating cost• Processing cost allocations

Maintaining cost units

Cost units usually represent products or geographical regions. The expenses incurred for a product or region should be allocatedto the corresponding cost unit. A cost unit can also be a sub-division or a group of skilled employee assigned in a small-scaleunit according to their respective job functions. You can create and maintain the cost units at System/Finance/Costcenters/units/Cost uunits.

To ccreate aand mmaintain ccost uunits:

1. Go to System/Finance/Cost ccenters/units/Cost uunits.2. Click New to create a new cost unit or Open to maintain an existing one.3. To create a new cost unit, define the 8-digit unique code and its description. To maintain an existing cost unit, change the

necessary information. Click Save, and then Close to exit.

Case sscenario:

To register Exact ADC as a new cost unit in your administration, go to System/Finance/Cost ccenters/units/Cost uunits and clickNew. You will see the following screen:

Fill in the code and description and click Save. The newly created costunit is now listed at System/Finance/Cost ccenters/units/Cost uunits.

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Maintaining cost centers

Unlike cost units, cost centers usually represent departments or divisions. Employees residing in the same cost centerspecialize in related skills. You can create and maintain cost centers at System/Finance/Cost ccenters/units/Cost ccenters.

To ccreate aand mmaintain ccost ccenters:

1. Go to System/Finance/Cost ccenters/units/Cost ccenters.2. Click New to create a new cost center or Open to maintain an existing one.3. To maintain an existing cost center, edit the necessary information. To create a new cost center, define the unique 8-digit

cost center code and description in the header. In the Cost aallocation tab, fill in the relevant details at Allocation llevel,Reallocated eexpense aaccount, and Coverage account. You can only select a certain general ledger account if you have selected the Allow ccost ccenter aallocation check box at the Cost ccenters/cost uunits tab of the corresponding generalledger account.

Allocation llevel is a hierarchical system used to determine how the cost should be allocated to the respective cost centers. Forfurther details, see the Allocating cost section. A Reallocated eexpense aaccount is a normal cost account or a general ledger thatis used for cost that have been reallocated. You need an expense account because when cost is moved from one cost center toanother, you will need a general ledger to store the cost in the new cost center. For positive cost, the entry will always be indebit. Coverage aaccount is used for indirectly deducting the cost account. An organization can ensure that all original cost hasbeen reallocated correctly using the following formula:

Cost left to be allocated = Original cost G/L - Coverage G/L

4. Click Save, and then Close to exit.

Case sscenario:

We will create a cost center based on the following information:

Cost CCenter SM

Description Sales & Marketing

Allocation llevel 1

Reallocated EExpense AAccount 4010

Coverage AAccount 8050

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To record this, go to System/Finance/Cost ccenters/units/Cost ccenters and click New.

At the header, type "SM" at Cost ccenter and "Sales & Marketing" at Description. Click the Cost aallocation tab and fill in thedetails at Reallocated eexpense aaccount and Coverage aaccount. If you select a coverage account that is already linked by anothercost center, a message will be displayed when you click Save, prompting if you want to reuse it for this cost center. If you select"Yes", the system will proceed to link the selected coverage account to the cost center. If you select "No", the system will returnto the Cost ccenters screen whereby you need to enter a different coverage account. Once successfully saved, the newly createdcost center will be listed at System/Finance/Cost ccenters/units/Cost ccenters.

Maintaining cost center categories

You can classify divisions and departments into groups of categories that are logical to your company using the cost centercategory. For instance, you can define categories by job group, location, or region. A category can then be broken down to asmaller sub-category. Sub-categories are details of how you classify the cost centers in the selected cost center category. Costcenter categories are also known as cost center layouts. You can create and maintain these categories at System/Finance/CostCenters/Units/Categories. These categories are not linked to the general ledger.

To ccreate aand mmaintain ccost ccenter ccategories:

1. Go to System/Finance/Cost CCenters/units/Categories. 2. Type a name for each respective cost center layout or category. You can modify the name, if required. 3. Click Maintain: PProperties to edit each of the category or layout. You will see a list of sub-categories within the selected

category. The green check mark indicates whether you have defined and assigned different sub-categories for a particularcategory level.

4. Click Save, and then Close to exit.

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Case sscenario:

The cost center category in an organization is divided into geographical location and strategic group. The geographical locationconsists of Malaysia and Netherlands while the strategic group consists of Europe and Asia Pacific. We need to assign thegeographical location and strategic group to the Sales & Marketing cost center as Malaysia and Asia Pacific respectively.

To record this, go to System/Finance/Cost CCenters/Units/Categories and replace the first two default categories as geographicaland strategic group.

Click Maintain: PProperties to see the Sub ccategories screen. Then, click New to create Malaysia under the geographicalcategory.

Once saved, the sub-categories are listed in the Sub ccategories screen. Repeat the same steps to add Netherlands under thegeographical category. Now, if you reopen the Sales & Marketing cost center that you have created earlier atSystem/Finance/Cost ccenters/units/Cost ccentres, you can select the geographical location as Malaysia and strategic groupas Asia Pacific as shown in the following screen:

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Click Save to save the changes.

Allocating cost

Sometimes you need to allocate cost between cost centers or general ledger accounts. To support this, Exact GGlobe allows two,mutually exclusive types of cost allocation:

• Allocation by cost centers• Allocation by G/L accounts

Allocation bby ccost ccenters:

Cost centers and cost units provide better insights into how the cost is divided within an organization. When you allocate by costcenters, you are actually allocating from one cost center to another. You can apply the cost allocation effectively if you havedefined the allocation levels properly. Allocation levels determine how the cost should be allocated to the respective cost centers.In Exact GGlobe, the highest permitted allocation level is "1" while the lowest is "99". Each cost center has an allocation level.Expenses are always allocated from a cost center of a higher allocation level to the cost centers of a lower allocation level. Thecost center with the highest allocation level can only serve as a main cost center. For example, the Sales & Marketing cost centerwith an allocation level of "1" can be the main cost center for the Customer Service cost center with an allocation level of "2".

Before using this method, you must set up the cost center and link two G/L accounts to the Cost aallocation tab of a cost centermaintenance card. You can create and maintain cost allocation at System/Finance/Cost ccenters/units/Cost aallocation.

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To aallocate bby ccost ccenters:

1. Go to System/Finance/Cost ccenters/units/Cost aallocation, and select the cost center to be allocated from. 2. Click Allocate to assign the expenses from the selected cost center of a higher allocation level to the cost center of a lower

allocation level. Depending on the size of the administration, this procedure may take some time. 3. Click Insert to add the cost centers to be allocated to and type the number of units to be allocated to it. 4. Click OK, and then Close to exit.

Case sscenario ((allocation bby ccost ccenters):

The Sales & Marketing cost center has one new coffee machine which must be distributed to the Customer Service cost center.The cost centers have the following information:

After you have created the cost centers, go to System/Finance/Cost ccenters/units/Cost aallocations to allocate the cost by costcenters. Select the Sales & Marketing cost center and click Allocate. Then, click Insert to add the Customer Service cost centerand allocate one unit to it.

The percentage of cost allocated to SM = Number of units assigned to SM x 100%Total units assigned to the allocation

= 1 x 100%1

= 100%

Cost CCenter SM CS

Description Sales & Marketing Customer Service

Allocation llevel 1 2

Reallocated EExpense AAccount 4010 4011

Coverage AAccount 8050 8051

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When you click OK, you will see that one unit has been allocated from Sales& Marketing to Customer Service as follows:

This allocation is not complete as it still needs to be processed. You will learnhow to process this allocation in the Processing cost allocation section.

Allocation bby GG/L aaccounts:

This method is your typical allocation. Take note that these two allocation methods are mutually exclusive. Which means youcan only use one or the other to allocate a journal entry. The allocation is done at the Cost ccenters/cost uunits ttab oof aa GG/Laccount at Finance/General lledger/Chart oof GG/L's. For further details, see Section 1.3 Chart of General Ledgers. Consequently,the setup for each type of allocation is independent of one another. In other words, the units assigned at System/Finance/Costcenters/units/Cost AAllocation are not related to the units assigned at the Cost ccenters/cost uunits ttab oof aa GG/L aaccount.

To aallocate ccost bby GG/L:

1. Go to Finance/General lledger/Chart oof GG/L's. 2. Select the G/L to be allocated from and click Open.3. At the Cost ccenters/cost uunits tab, select the Cost ccenter check box, and then type or select the default cost center to add

the relevant cost center to the G/L account. Then, update the number of units to be allocated to the cost center byselecting the relevant cost center and clicking Edit.

4. Click Save, and then Close to exit.

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Case sscenario ((allocation bby GG/L):

We need to allocate one unit of computer by G/L from the Human Resource cost center to the Training cost center. The costcenters have the following information:

First of all, you need to create the two cost centers. Then, go to Finance/General lledger/Chart oof GG/L's and open an expense account.

At the Cost ccenters/cost uunits tab, select the Cost ccenter check box and then type or select the default cost center as HR. Onceselected, the cost center reallocation is allowed for this general ledger account. Under the Cost ccenters section, add the defaultcost ccenter and Training cost ccenter. Next, select Training and update it to one unit.

The percentage of cost allocated to SM = Number of units assigned to TR x 100%Total units assigned to the allocation

= 1 x 100%1

= 100%

Click Save to save the changes. Just as cost allocation by cost centers, you also need to process this allocation by G/L.

Cost CCenter HR TR

Description Human Resource Training

Allocation llevel 1 2

Reallocated EExpense AAccount 4014 4015

Coverage AAccount 8054 8055

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Processing cost allocations

Finally, you need to process your allocation regardless whether you have allocated the cost by cost centers or G/L. You can dothe processing at Finance/General lledger/Cost ccenters/units/Process.

Processing ccost aallocation bby ccost ccenters:

There are two methods to process the allocation by cost centers based on the general ledger accounts that are used during theallocation process:

• Allocate using general ledger accounts from an upper level cost center• Allocate using general ledger accounts from a lower level cost center

You can define the method that you want to use at System/General/Settings/General lledger ssettings under the Default section.See Section 1.1 System Settings.

The difference between both cost center allocation methods for allocation from a level 1 cost center to a level 2 cost center issummarized below:

This is the original entry:

This is the entry when reallocating cost using general ledger accounts from an upper level cost center for GL account 1 (debit):

This is the entry when reallocating cost using general ledger accounts from a lower level cost center for GL account 1 (debit):

G/L Amount (EUR) CC

GL account 1 (Cost) 1000 The cost center you are allocating from - Level 1

Creditor 1000

G/L Amount (EUR) CC

Reallocated expense (The G/L from Level 2) 1000 The cost center you are allocating from - Level 2

Coverage (The G/L from Level 1) 1000 The cost center you are allocating from - Level 1

G/L Amount (EUR) CC

Reallocated expense (The G/L from Level 1) 1000 The cost center you are allocating from - Level 2

Coverage (The G/L from Level 1) 1000 The cost center you are allocating from - Level 1

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To pprocess ccost aallocation bby ccost ccenter:

1. Go to System/General/Settings/General lledger ssettings. 2. Under the Default section, select Allocate uusing ggeneral lledger aaccounts ffrom uupper llevel ccost ccenter or Allocate uusing

general lledger aaccounts ffrom llower llevel ccost ccenter at Cost ccenter aallocation mmethod. 3. Next, go to Finance/Entries/General jjournal and create a new general journal entry to the cost center that you are allocating

from. See Section 2.5 General Journal Entry.4. Then, go to Finance/General lledger/Cost ccenters/units/Process. 5. Select Cost ccenter.6. Click Start to display the list of allocations to be processed. 7. Click Allocate to start processing the allocation.

Case sscenario ((allocation ffrom aan uupper llevel ccost ccenter):

From the above case scenario on the cost allocation by cost centers, we now need to process the allocation of one unit from theSales & Marketing cost center to the Customer Service cost center. In summary, the cost centers have the following information:

Before you can process the allocation, you need to create a new general journal entry for the Sales & Marketing cost center atFinance/Entries/General jjournal. The financial entries are tabulated as below:

Next, go to System/General/Settings/General lledger ssettings, and select Allocate uusing ggeneral lledger aaccounts ffrom uupperlevel ccost ccenter at Cost ccenter aallocation mmethod. Then, go to Finance/General lledger/Cost ccenters/units/Process, select Costcenter, and then click Start.

G/L Amount (EUR) CC

0300 - Office equipment 1000 Sales & Marketing (Level 1)

1300 - Accounts payable 1000

Cost CCenter SM CS

Description Sales & Marketing Customer Service

Allocation llevel 1 2

Reallocated EExpense AAccount 4010 4011

Coverage AAccount 8050 8051

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You will see that the Sales & Marketing cost center has EUR 1,000.00 which is entered via the general journal entry and EUR1,000.00 or three units will be allocated to the Customer Service cost center. You may select the individual general ledgeraccount, a range of it, or all the general ledger accounts for reallocation. If you select the All check box, the cost center reallocationwill be done on general ledger accounts that have been enabled for cost center reallocation only. Click Allocate to process theallocation. You can view the transactions of the processed cost allocation at Finance/General lledger/Cost ccenters/units/Costcenter ttransactions.

The process does not touch the G/L 0300 Office Equipment from the original entry.

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Case sscenario ((cost aallocation ffrom aa llower llevel ccost ccenter):

To show the cost allocation by cost centers using Allocate uusing ggeneral lledger aaccounts ffrom llower llevel ccost ccenter, we needto create two more cost centers with the following information:

We will allocate one unit from the Management cost center to the Finance & Administration cost center. Create a new generaljournal entry for the Management cost center at Finance/Entries/General jjournal. The financial entries are tabulated as below:

Go to System/General/Settings/General lledger ssettings, and select Allocate uusing ggeneral lledger aaccounts ffrom llower llevel ccostcenter at Cost ccenter aallocation mmethod. Next, go to Finance/General lledger/Cost ccenters/units/Process, select Cost ccenter, andthen click Start.

Cost CCenter MGT FA

Description Management Finance & Administration

Allocation llevel 1 2

Reallocated EExpense AAccount 4012 4013

Coverage AAccount 8052 8053

G/L Amount (EUR) CC

0300 - Office equipment 2000 Management (Level 1)

1300 - Accounts payable 2000

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You will see that the Management cost center has EUR 2,000.00 which is entered via the general journal entry and EUR 2,000.00or one unit will be allocated to the Finance & Administration cost center. Click Allocate to process the allocation. You will get thefollowing result at Finance/General lledger/Cost ccenters/units/Cost ccenter ttransactions.

The process does not touch the Reallocated expense account G/L 4013 of Finance & Administration.

Processing ccost aallocation bby GG/L

As mentioned earlier, the setup of cost allocation by G/L is independent of the setup of cost allocation by cost center which is doneat System/Finance/Cost ccenters/units/Cost AAllocation. The allocation is done at the Cost ccenters/cost uunits tab of a G/L account.Similar to allocation by cost centers, allocation by G/L is also done at Finance/General lledger/Cost ccenters/units/Process.

This is the original entry:

This is the entry when reallocating cost by general ledger accounts for GL account 1 (debit):

G/L Amount (EUR) CC

Expense account 1000 The cost center you are allocating from - Level 1

Creditor 1000

G/L Amount (EUR) CC

Expense account 1000 The cost center you are allocating to - Level 2

Expense account 1000 The cost center you are allocating from - Level 1

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To pprocess ccost aallocation bby GG/L:

1. Go to Finance/Entries/General jjournal and create a new journal entry for the cost center to be allocated. See Section 2.5General Journal Entry.

2. Go to Finance/General lledger/Cost ccenters/units/Process, and select G/L. 3. Click Start to display the list of allocations to be processed.4. Click Allocate to start processing the allocation.

Case sscenario ((cost aallocation bby GG/L):

To summarize the case scenario in the allocating cost by G/L section, we need to allocate one unit from the Human Resourcecost center to the Training cost center. The cost centers have the following information:

First, enter a new general journal for the Human resource cost center. The financial entries are tabulated as below:

Secondly, go to Finance/General lledger/Cost ccenters/units/Process, select G/L, and then click Start.

G/L Amount (EUR) CC

4100 - Expense account 1000 Human Resource - Level 1

1300 - Accounts payable 1000

Cost CCenter HR TR

Description Human Resource Training

Allocation llevel 1 2

Reallocated EExpense AAccount 4014 4015

Coverage AAccount 8054 8055

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You will see the preview results of the cost allocation by G/L, whereby the Human Resource cost center has been debited with EUR3,000.00 from the general journal entry and one unit, or 100% will be allocated to the Training cost center. Click Allocate to processthe allocation by G/L. To view the allocation result, go to Finance/General lledger/Cost ccenters/cost uunits/Cost ccenter ttransactions.

Notice that unlike the cost allocation by cost centers, all the coverage and reallocated expense accounts are not touched.

5.3 Using External Numbering

External numbering is a functionality offered by Exact GGlobe to provide you the flexibility to use the external numbers in yourbusiness documents apart from the standard numbering system based on the Entry, Our rreference, and Your rreferencenumbers. In addition, the external numbering functionality caters to users in some countries where the legislation requiresbusinesses to use a numbering system, in which documents generated from different business transaction types are to usedifferent sets of numbers. In certain countries, these numbers must meet specific format requirements such as to includeprefixes and masks. For these reasons, you can now choose to enable the external numbering functionality in your system tocater to the additional needs of your business. In line with the external numbering functionality, you can define the numberingrules and the number ranges for the external numbers. The system will then assign external numbers for the specific businesstransactions based on the defined numbering rules and number ranges. Meanwhile, the external number will be printed on thefinal printed documents if you have added the external number field in the document layout.

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Setting up external numbering functionality

Before you can use the external numbering functionality, you need to enable this functionality in Exact GGlobe. After you haveenabled the functionality, you will then be able to see two new menu paths, which include System/Logistics/Externalnumbering/Numbering rrules and System/Logistics/External nnumbering/External nnumbers.

To sset uup tthe eexternal nnumber ffunctionality:

1. Go to System/General/Settings, and click Numbers ssettings under the Settings section.2. Under the General section, select the Use eexternal nnumbering check box.3. Click Save, and the message "Changes will only take effect after restarting the software" will be displayed. Click OK.4. Click Close on the main menu to exit the software and then restart the software. You will see two new menu paths, which

include System/Logistics/External nnumbering/Numbering rrules and System/Logistics/External nnumbering/External nnumbers.

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Creating numbering rules

After you have enabled the external numbering setting you, can create the numbering rules which will determine the externalnumbers to be generated. By creating the numbering rules, you can define the transaction types, optional conditions, andnumber ranges to be used to generate the external numbers. The system will refer to these criteria when assigning the externalnumbers to your business documents.

To ccreate nnumbering rrules:

1. Go to System/Logistics/External nnumbering/Numbering rrules and click New.2. Type a code for the new numbering rule at Numbering rule code. This is mandatory.3. At Description, type a description for the new numbering rule. This is mandatory. Click if you want to type the

description in foreign languages which have been defined in the Descriptions iin llist bboxes section in General ssettings. Formore information, see Setting up general settings in 1.1 System Settings.

4. Under the Basics tab in the Transactions section, the Available box lists all available transaction types which you canselect for use in the numbering rule. Select the transaction type(s) and then click to move the selected transactiontype(s) to the Selected box. By doing this, you are selecting the transaction type(s) to be used in the numbering rule. Ifyou want to move any of the transaction types from the Selected box to the Available box, select the transaction type(s) inthe Selected box and then click . By doing this, you can delete the transaction type(s) selected earlier to be used inthe numbering rule.

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5. Under the Optional cconditions section, you can select None, one, or two at Number oof ooptional cconditions to define thenumber of optional conditions you want to use in the numbering rule. Optional conditions are used if you want to furtherdefine the conditions of every numbering rule. These optional conditions are important while generating the externalnumber within a number range and at the same time, helping to speed up data retrieval in reports.

6. Based on the Number oof ooptional cconditions you have defined, you can select the optional conditions to be used atOptional condition 1 and Optional condition 2. If you select None at Number oof ooptional cconditions, the Optionalcondition 11 and Optional ccondition 22 fields will be disabled. If you select one, you can select Cost ccenter, Resource, orWarehouse aat OOptional ccondition 11 while the Optional ccondition 22 field will be disabled. If you select two at Number oofoptional cconditions, you can select two optional conditions to be used with the available options of Cost ccenter,Resource, and Warehouse. However, the optional condition selected at Optional ccondition 11 and Optional ccondition 22must be different. For an existing numbering rule which is linked to number ranges, the Optional cconditions section willbe disabled for editing.

7. Click Save to save the numbering rule. By default, a newly created numbering rule will be activated. As such, when youare creating a new numbering rule, the Inactive check box will be disabled. The check box will only be enabled after youhave clicked Save to save the new numbering rule.

8. Under the Number rranges tab, click New to create new number ranges for the numbering rule.

9. You will see the Number rrange screen. Optional ccondition 11 and Optional ccondition 22 will be disabled if you have selectedNone at Number oof ooptional cconditions under the Optional cconditions section. If you have defined to use one or twooptional conditions and selected the optional conditions under the Optional cconditions section, the label of the Optionalcondition 11 and Optional ccondition 22 fields as shown in the preceding image will display the optional conditions you haveselected. For example, if you have selected to use Resource as the optional condition 1 and Warehouse as the optionalcondition 2 under the Optional conditions section, the Optional ccondition 11 field will be shown as Resource, while theOptional ccondition 22 field will be shown as Warehouse in the Number rrange screen.

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10. Next, click to select the optional condition values to be used to generate the external numbers if you areusing the optional conditions. For example, if you have selected to use Cost ccenter as the optional condition 1, clickSelect to select the cost center(s) to use the number ranges for transactions involving the selected cost center(s). In thisexample, you will see the Optional ccondition box displaying all the active cost centers in the system. Select the costcenter(s) and click Select to select the cost center(s) that the number ranges will be created for. Alternatively, double-clicka cost center to select the cost center. A green check mark will be displayed under the Select column to indicate that thecost center(s) has been selected. Click Deselect aall to clear the selection of all the selected cost centers. To clear theselection of a specific selected cost center, double-click the selected cost center or click Select again. Click Close to exit.By doing this, you can create different number ranges for transactions involving different cost centers or one numberrange for use by multiple cost centers.

11. At Mask, type the mask for the number range. This information is mandatory. You can type up to 30 characters in thisfield. The mask is case-sensitive and it can contain a separator as well as any symbol, except "#" and " " (ENTER key onthe keyboard) when you define a prefix for the mask. A <space> is allowed in between the mask; however it cannot beplaced before or after the mask as all spaces will be trimmed by the system during the numbers generation. In addition,the mask must represent the running number format which is indicated by the "#" symbol. For example, if you want tocreate a mask with prefix "ABC" and the running number to contain three digits, you can type "SALEINVOICE-###" in Mask.You should type at least one "#" in Mask to represent the running number format in the number range.

12. Type the start and end number for the number range at Number rrange > To. This information is mandatory. The maximumnumber of digits allowed will depend on the mask you have defined. For example, if you have typed "SALEINVOICE-###" inMask, the maximum number of digits that you can type as the start and end number in the number range will be three asindicated by the three "#" symbols in the mask. The start and end number must not be equal to "0" and the start numbermust be a smaller number than the end number in the number range. For example, you type "1" in Number rrange and"999" in To. The resulting number range will start from SALEINVOICE-001 to SALEINVOICE-999 as shown in Preview.

13. At Valid > To, type or select the validity date range for the number range. This determines the life cycle of the numberrange. By default, the start date of the validity period will show the current date when you create a new number range. Thestart date is mandatory information. However, you can leave the To field empty. You may want to do this if you want to usethe number range for as long as you desire, and will only enter an end date when your business requires so. Once anexternal number from the number range has been used, you cannot change the start date of the number range. Inaddition, the validity period of the number range cannot overlap with the validity period of other existing number rangesin the numbering rule. For example, you have an existing number range with the validity period from 01-01-2007 to 31-12-2007. If you create a new number range now with a validity period from 01-06-2007 to an undefined end date, you willsee this message "This range is overlapping with one of the existing number range's criteria: Life cycle" once you clickSave to save the new number range. Click OK to close the message and then change the start date so that it will notoverlap with the existing number range.

14. Click Save to save the number range.

Note: When you create a new number range, by default, the Inactive check box is disabled. This means, the status of a newnumber range is automatically set to Active. The check box will be enabled only when you edit an existing active number range.Select the check box to inactivate the number range. Once you have selected the check box, the message "Set to inactive?" willbe displayed. Click Yes to inactivate the number range and then type the reason for inactivating the number range in the Notebox. Click Save to save the note. Once you have inactivated a number range, you are not allowed to reactivate the number range.The system will delete all the unused external numbers in the number range and update the end number of the number rangeequal to the last assigned number. If the number range has not been used, the inactivation process will reset the start and endnumber of the number range to "0".

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External numbering in financial reporting

When you are using the external numbering functionality in the system, you can define the external number as criteria togenerate certain financial reports as well as view the external numbers used in the various transactions. The following listdisplays the menu paths where external numbers are used:

• Finance/General lledger/Cards• Finance/General lledger/Cost ccenters/units/Cost ccenter• Finance/General lledger/Cost ccenters/units/Cost uunit• Finance/General lledger/Select/search• Finance/General lledger/Analytical aaccounting• Finance/General lledger/Revaluation/Invoices && BBank/Cash• Finance/Accounts rreceivable/Cards• Finance/Accounts rreceivable/Balance llist• Finance/Accounts rreceivable/Receivables/Aging aanalysis• Finance/Accounts rreceivable/Receivables/Receivables• Finance/Accounts rreceivable/Receivables/Receivables (report in Excel)• Finance/Accounts ppayable/Cards• Finance/Accounts ppayable/Balance llist• Finance/Accounts ppayable/Payables/Aging aanalysis• Finance/Accounts ppayable/Payables/Payables• Finance/Accounts ppayable/Payables/Payables (report in Excel)• Finance/VAT/Statistics/Invoice llist• Finance/VAT/Statistics/Value aadded ttax• Finance/Entries/Reports/To bbe pprocessed• Finance/Entries/Reports/Processed• Finance/General lledger/Cost ccenters/units/Cost ccenters (Details layout for report)• Finance/General lledger/Cost ccenters/units/Cost uunits (Details layout for report)

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Example of external number criteria used in G/L card:

Go to Finance/General lledger/Cards, select a G/L account and click Display. Next, click Filter.

Example of external number used as order criteria in the Print selection screen for G/L card:

Go to Finance/General lledger/Cards and click Print.

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Example of external numbers shown in general ledger card report:

Go to Finance/General lledger/Cards, click Print. Next, click Start to generate the report based on the defined criteria.

5.4 Processing Balance Sheet General Ledger Accounts

The system allows you to automatically process all the balance sheet general ledger accounts after you have performed the year-end closing of the profit & loss general ledger accounts. In this process, an opening and closing balance general ledger accountwill be used to offset all the balance sheet general ledger accounts.

To enable this functionality, go to System/General/Settings/General lledger ssettings and select the Process bbalance ssheet checkbox under the Year-eend cclosing pprocess section. Next, type or select the general ledger account at Closing ooffset BB/S aaccountto define the general ledger account that will be used as the offset general ledger account in the closing process. For moreinformation, see 1.3 Chart of General Ledgers - Setting up general ledger settings.

In general, you should perform the following steps to enable the balance sheet general ledger accounts processing functionalitythat will close all the balance sheet general ledger accounts:

• Creating the opening and closing offset balance sheet account• Processing profit & loss and balance sheet general ledger accounts

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Creating the opening and closing offset balance sheet account

You should create the opening and closing offset balance sheet account as a prerequisite to process all the balance sheetgeneral ledger accounts. The function of this general ledger account is to offset the balance of the balance sheet general ledgeraccounts during the closing process.

To create the opening and closing offset balance sheet account:

1. Go to Finance/General lledger/Chart oof GG/L's, and click New to create a general ledger. You will see the Maintain aaccountsscreen.

2. Click Simple to view the screen in the simple mode.3. Click the Basics tab. Under the General section, type a code for the new general ledger account at G/L NNumber. For

example, type "0000".4. Type the description of the general ledger account at Description. In the example given, type "Opening and Closing

Balance".5. Select Neutral aaccount at Subadministration.6. Under the Reporting GGroup section, select Balance ssheet.7. Click Save and then Close to exit.

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Note: After you have created this general ledger account, go to System/General/Settings/General lledger ssettings and select thisaccount at Closing ooffset BB/S aaccount under the Year-eend cclosing pprocess section. Click Save.

When you open the "Opening and Closing Balance" general ledger account at Finance/General lledger/Chart oof GG/L's, notice thatReporting ggroup and Subadministration have been disabled. This is because this general ledger account has been defined asthe offset general ledger account that will be used in the closing of the balance sheet general ledger accounts.

Processing profit & loss and balance sheet general ledger accounts

At the end of a financial year, the financial condition of your business will be reflected in a profit & loss statement. The profit orloss at the end of a financial year or period will be carried forward to the next financial year or period as an opening balance.The objective of processing the profit & loss general ledger accounts is to bring the balance of every profit & loss general ledgeraccount to zero by offsetting the balance to a resulting balance sheet general ledger account, which you define at Result underthe Year-eend cclosing pprocess section at System/General/Settings/General lledger ssettings. Only after you have processed theprofit & loss general ledger accounts, the system will process the balance sheet general ledger accounts.

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To process profit & loss and balance sheet general ledger accounts:

1. Go to System/Finance/Process pprofit // lloss.2. Method displays the frequency of profit & loss processing you have defined at System/General/Settings/General ssettings

under the Period aand yyear ccontrol section at Process pprofit // lloss. At Financial yyear, select the financial year in which youwant to process the profit & loss general ledger accounts. The available years for selection depend on the financial yearsyou have created in the system. For more information, see 1.2 Financial Periods - To set up fiscal periods.

3. At Period, select the All check box if you want to process the profit & loss general ledger accounts for all the periods in theselected financial year and transfer the result of the profit & loss accounts to the opening balance of the followingfinancial period in the subsequent year. Alternatively, you can also define the range of periods to process the profit &loss. If Method is defined as Yearly, Period will be disabled. With this option, the system will automatically assign a 12-month period within the selected financial year to process the profit & loss general ledger accounts.

4. Type or select the general journal at Journal to post the result entries to this journal. This is mandatory.5. At Account: BB/S, type or select the resulting balance sheet general ledger account, which will be used to offset the

balance of the profit & loss general ledger accounts. This is mandatory.6. Select the type of financial transactions to be processed at Type. Options available are Standard and Fiscal.7. At Description, type a description for the processing entries. By default, it will show "Result XXXX" (XXXX reflects the

financial year you have selected). 8. Under the Group bby section, select Financial yyear or Financial yyear/Cost ccenter to group the transaction lines. If you select

Financial yyear, the system will generate the double-entry transaction lines per profit& loss account for each result.Meanwhile, if you select Financial yyear/Cost ccenter, the system will generate the double-entry transaction lines per profit& loss general ledger account and cost center for each result.

9. Click Display to display all the generated transaction lines based on the defined criteria. You will see the Process pprofit //loss screen.

10. At Balance // PPL, select All if you want to display the closing entries for balance sheet and profit & loss general ledgeraccounts, Profit && LLoss to display the closing entries for profit & loss general ledger accounts only, or B/S to display theclosing entries for balance sheet general ledger accounts. This field will only be available if you have enabled the settingto use the balance sheet processing functionality.

11. Click Process to process the closing entries for all the balance sheet and profit & loss general ledger accounts.

Note: If you have enabled the Process bbalance ssheet functionality and performed the closing process, and decide to disable thefunctionality, you will see the message "Previous closing entries exist. Changing this setting will cause inconsistent financialresults. Continue anyway?" once you clear the Process bbalance ssheet check box in System/General/Settings/General lledgersettings. Click No to maintain the setting or Yes to disable the functionality.

Tip: In the Interactive Balance Report, you can view the opening balance amounts that are brought forward fromthe closing entries of the previous financial year by manually defining the required columns in the report. Formore information, see 4.1 Financial Analysis - To generate Interactive Balance report.

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