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Updated: May 2007 Copyright © 2005-2007 DBA Software Inc. All rights reserved.

2 Accounting Startup Guide

Table of Contents

i. Introduction...................................................................... 6

What this User Guide Covers .................................................................. 6 Manufacturing Startup Guide ................................................................... 6 Other User Guides................................................................................... 6 Training & Support ................................................................................... 7 Accessing the online support center ........................................................ 8

i-2. Implementation Sequence of Events.................................................... 9

Phase 1 – Devise an Implementation Plan .............................................. 9 Phase 2 – Accounting Configuration........................................................ 9 Phase 3 – Ledger Setup .......................................................................... 9 Phase 4 – Manufacturing Ledger Startup Day ......................................... 9 Phase 5 – Financial Modules Setup ........................................................ 9 Phase 6 – Train Users ........................................................................... 10 Phase 7 – General Ledger Cutover Day................................................ 10 Phase 8 – Track the Numbers ............................................................... 10 Implementation Checklist (Appendix) .................................................... 10

Phase 1 – Devise an Implementation Plan ..................... 11

Evaluate your ledger option ................................................................... 11 Evaluate your AR option ........................................................................ 11 Establish a GL cutover date................................................................... 11 Study the system ................................................................................... 11 Plan your chart of accounts structure .................................................... 11

Phase 2 – Accounting Configuration.............................. 13

Accounting Configuration....................................................................... 13

Phase 3 – Ledger Setup ................................................... 16

Accounting Periods................................................................................ 17 Ledger Defaults ..................................................................................... 18 Account Code Length ............................................................................ 20 Account Classes .................................................................................... 21 Account Groups (GL) ............................................................................. 22 Budget Names (GL) ............................................................................... 23 Chart of Accounts .................................................................................. 24 Account Assignments ............................................................................ 27

Phase 4 – Manufacturing Ledger Startup Day ............... 40

Accounting Startup Guide 3

Clear Ledger ..........................................................................................40 Using the Manufacturing Ledger ............................................................41

Phase 5 – Financial Modules Setup.................................42

Payment Types ......................................................................................42 Bank Account Types ..............................................................................43 AR Bank Accounts .................................................................................44 Bank Accounts .......................................................................................45 Supplier Default GL Accounts ................................................................47

Phase 6– Train Users ........................................................48

Accounts Receivable..............................................................................48 Accounts Payable ..................................................................................48 Banking ..................................................................................................49 General Ledger ......................................................................................49

Phase 7 – General Ledger Cutover Day ..........................50

Enter open AR aging ..............................................................................50 Enter open AP aging ..............................................................................52 Enter GL account balances ....................................................................54

Phase 8 – Track the Numbers ..........................................56

Appendix A – Implementation Checklist .........................58

Appendix B – Converting from Mfg Ledger to GL..........61

Phase 1 – Devise an Implementation Plan ...............................................61

Establish a GL cutover date ...................................................................61 Study the system....................................................................................62 Plan your chart of accounts structure.....................................................62

Phase 2 – Enter Financial Tables ..............................................................62

General Ledger Defaults ........................................................................62 Account Groups .....................................................................................62 Budget Names .......................................................................................62 Chart of Accounts...................................................................................63 Account Assignments.............................................................................63 Payment Types ......................................................................................63 Supplier Default GL Accounts ................................................................63

Phase 3 – Train Users ................................................................................63

Phase 4 – GL Cutover Day .........................................................................64


Verify that all transfers are completed ................................................... 64 Activate the General Ledger .................................................................. 64 Enter open AR aging.............................................................................. 64 Enter open AP aging.............................................................................. 65 Close out existing GL balances ............................................................. 65 Enter beginning GL account balances ................................................... 66

Phase 5 – Track the Numbers ................................................................... 66


i. Introduction

i. Introduction Welcome to DBA Manufacturing Next-Generation, a complete small business manufacturing system that includes order entry, planning, production, purchasing, inventory, invoicing, and accounting.

What this User Guide Covers This user guide covers the setup and implementation associated with the following accounting modules:

● Manufacturing Ledger ● Banking ● Accounts Receivable ● General Ledger ● Accounts Payable

Manufacturing Startup Guide Manufacturing startup occurs either in advance of or in parallel with the accounting startup process covered in this user guide. Refer to the separate Manufacturing Startup Guide for setup and implementation of the manufacturing potion of the system.

Other User Guides In addition to this Accounting Startup Guide and the Manufacturing Startup Guide, four other user guides are available on the system’s Help menu:

Accounting User Guide This is a comprehensive ‘how to’ guide that covers the actual operation of screens and reports throughout the accounting portion of the system.

Manufacturing User Guide This is a comprehensive ‘how to’ guide that covers the actual operation of screens and reports throughout the manufacturing portion of the system.

Service Module Guide DBA includes a complete service and maintenance sub-system that enables you to generate and perform service jobs on your assets or those of your customers.

Data Import/Export Guide This guide covers the importing of your main tables (customers, suppliers, items, BOM’s, assets, chart of accounts) and the system’s data export capability.


i. Introduction

Training & Support

Even though DBA is an "off the shelf" solution designed for self-implementation, we encourage you to use our support and online resources because they save you time and money. Our training and support program is a resource-based service delivered through our online support center. A support center subscription provides you with a low-cost alternative to fee-based services.

NOTE: You can purchase a support center subscription from the DBA web store at www.DBAManufacturing.com or you can contact [email protected].

A support center subscription includes the following:

Online Training • Available to all users in your company 24/7 • Search videos by topic in knowledge base • Packed with tips, suggestions, and consulting-level advice

Support Service

• State-of-the-art online ticketing system manages all support incidents • Tickets can be submitted by any user, not just primary contact • Ticket queue actively managed for quick response to emergencies • Issue resolution by return ticket, phone, data review, or remote access -

whichever we determine to be most effective • Ticket tracking by issue, status, category, person, and date • Ticket copy option to other users • Tickets stay open until resolved and can be reopened if additional help

is needed


http://www.dbamanufacturing.com/

mailto:[email protected]

i. Introduction

Online Support Center

• Training videos • Knowledge base • Discussion forum • Most popular and most recent knowledge topics • User ratings on topic helpfulness • Automatic e-mail notification of topic changes • White papers • Downloads

Accessing the online support center A support center subscription provides all users in your company with access to the online support center. Access to the online support center is provided within the software itself. Go to the Help menu and click the Online Support Center option. Each of your users can self-register Each user within your company can register and set up a personal account by clicking the Request for a New Account button and completing and submitting the registration form.


i-2. Implementation Sequence of Events

i-2. Implementation Sequence of Events The chapters in this user guide are organized in the recommended order of implementation so that your tables and activities are set up and performed in their proper sequence.

Phase 1 – Devise an Implementation Plan Up-front planning will save you time. We recommend you do the following in this first phase of implementation:

• Evaluate your ledger option • Evaluate your AR option • Establish a GL cutover date • Study the system • Plan your chart of accounts structure

Phase 2 – Accounting Configuration In this second phase, you decide whether the DBA manufacturing system is to be used with an outside accounting system or with the DBA financial modules.

Phase 3 – Ledger Setup In this third phase of implementation, you will set up either the Manufacturing Ledger or General Ledger.

Phase 4 – Manufacturing Ledger Startup Day The manufacturing system implementation process culminates with Manufacturing Startup Day, which is the day you begin operating the manufacturing side of your business in DBA. You will be using the Manufacturing Ledger concurrent with Manufacturing Startup Day.

If you are using the Manufacturing Ledger, accounting implementation is completed at this point.

Phase 5 – Financial Modules Setup In phase 5, you will set up the remainder of the DBA financial modules in preparation for General Ledger Cutover Day. Specifically, you will set up the following items:

• Payment Types • Bank Account Types • Bank Accounts • Supplier Default GL Accounts


i-2. Implementation Sequence of Events

Phase 6 – Train Users In this phase, accounting personnel should be trained in the use of the screens that pertain to their job functions.

Phase 7 – General Ledger Cutover Day General Ledger Cutover Day refers to the day when you cease operating with your other accounting system and begin doing all your accounting within DBA. On or just prior to cutover day, you will do the following:

• Enter open AR aging • Enter open AP aging • Zero out existing GL account balances • Enter beginning GL account balances

Phase 8 – Track the Numbers As of General Ledger Cutover Day you will be making all your accounting transactions within DBA. It is important during this startup period that you track the numbers to make sure that everything is set up correctly and it posting to the correct GL accounts. During this phase you will do the following:

• Run batch posting on a daily basis • Track the numbers through the Journal Report and Transaction Listing • Reverse batches and make corrections, if applicable

Implementation Checklist (Appendix) In the back of this guide, you will find all the topics in this guide boiled down to an Implementation Checklist that can be used as a worksheet to help you plan your implementation.


Phase 1 – Devise an Implementation Plan


Evaluate your ledger option Evaluate whether you should use the Manufacturing Ledger, which enables you to use the DBA manufacturing system with an outside accounting system for financial functions, or the General Ledger, which enables you to use the DBA financial modules. See the next chapter for details.

Evaluate your AR option If you decide to use the Manufacturing Ledger, evaluate whether to process receivables in DBA or in your outside accounting system. See the next chapter for details.

Establish a GL cutover date If you use the Manufacturing Ledger, there is no financial cutover date. You simply begin using it concurrent with Manufacturing Startup Day and transfer ledger information to your outside general ledger at the end of each period. If you use the General Ledger, careful consideration should be given to the establishment of a financial cutover date when you will cease doing any further accounting in your old system and doing it all within DBA. The ideal time for a financial cutover is the start of your fiscal year. That way you can finalize the prior year’s financial statements, 1099 reporting, etc. in the old system and have a clean starting point in the new system. You will also give you complete period-by-period numbers for the entire year for analysis purposes, which is difficult to achieve when doing a mid-year cutover.

Study the system The more time you spend up front learning the DBA financial modules, the fewer mistakes you will make and the smoother the implementation process will be. We suggest you review the following resources:

• The remainder of this guide • The Accounting User Guide • The financial-related training courses in the online support center (support

center subscription required for access) • The DBA Sample Company

Plan your chart of accounts structure Changing accounting systems provides an opportunity to change your chart of accounts. Because DBA contains so many new accounts related to manufacturing, you might want to create a new chart of accounts from scratch,



perhaps modeled after the chart of accounts in the DBA Sample Company. See chapter 3, Ledger Setup, for more information.


Phase 2 – Accounting Configuration

Phase 2 – Accounting Configuration In this second phase, you decide whether the DBA manufacturing system is to be used with an outside accounting system or with the DBA financial modules.

Accounting Configuration (Admin – Accounting Configuration) In this screen, you select your accounting configuration. Three options are available.

Manufacturing Ledger Select this option if you wish to use the DBA manufacturing system with an outside accounting system. The outside accounting system will handle receivables, payables, banking, general ledger, and payroll.

Manufacturing Ledger + AR Module Select this option if you wish to use an outside accounting system for payable, banking, general ledger, and payroll, but wish to process receivables in DBA. By doing so, you avoid having to maintain customers in both systems.

General Ledger + AR-AP-Banking Modules Select this option if you wish to use the full General Ledger. Selecting this option also automatically activates the Accounts Receivable, Accounts Payable, and Banking modules.

The following three sections provide reasons for selecting each particular option.

Reasons to Use the Manufacturing Ledger The Manufacturing Ledger stores the financial-related transactions generated by the manufacturing system, which are transferred in summary format at period end to an outside general ledger. The outside accounting system will be used for payables, banking, general ledger, and payroll.

• The Manufacturing Ledger enables you to get the manufacturing system up and running without having to go through an immediate accounting system conversion. Once the manufacturing system is fully implemented, you can then convert to the full General Ledger, as well as the Accounts Payable and Banking modules.

• Your accounting department may be highly satisfied with your existing accounting system. Why put your people through the turmoil of an accounting system changeover when it’s not necessary?

• You may be highly satisfied with your existing financial statements and management reports. Why change systems and risk losing this capability?

• You may be using a midrange accounting system such as MAS 90®, Great Plains®, or ACCPAC® that provides in-depth accounting functionality. Why



not keep these systems for what they do best and use DBA for the manufacturing side of your business?

• You may be a department or branch office within a larger organization that uses an ERP system. The Manufacturing Ledger makes it easy to transfer data to an enterprise-wide accounting system.

• Your CPA might be more comfortable interacting with a popular mainstream system such as QuickBooks®, Peachtree®, MYOB® or one of the midrange systems mentioned above. Why not use an accounting system that is widely used and supported?

• Advanced functions such as integrated payroll, online banking, credit card processing, and fixed assets accounting are not available within the DBA financial modules. If these functions are important to you, why not use an accounting system that offers these capabilities?

Reasons to Use the Mfg Ledger with the AR Module If you generate a moderate number of invoices and set up new customers on an occasional basis, it is relatively easy to manage receivables in an outside accounting system. On the other hand, if you have a high volume of invoices and set up new customers on a frequent basis, it is more convenient to use DBA for receivables processing because double entry of customers and invoice summaries is eliminated.

In general, unless you have a compelling reason to process receivables outside of DBA, it is best to use the DBA Accounts Receivable module.

Reasons to Use the General Ledger + AR-AP-Banking Modules When you select the General Ledger, you will be using the full suite of DBA accounting modules, including Accounts Receivable, Accounts Payable, and Banking.

• Your existing accounting system is obsolete. You’ve assessed the DBA financial modules and they meet all your accounting requirements. Why not convert to the DBA financial modules after the manufacturing system is up and running?

• Your accounting needs are relatively simple. You have no need for advanced functions such as integrated payroll, online banking, credit card processing, and fixed assets accounting. Why not convert to the DBA financial modules after the manufacturing system is up and running?

• You prefer the convenience of a single integrated system without any data transfer.



You can always change ledgers later You have the option of starting with the Manufacturing Ledger and changing to the full General Ledger at a later time. While the manufacturing system gets implemented, you can use the Manufacturing Ledger and perform AP transfers on a daily basis. You can process receivables in DBA or you can make AR transfers on a daily basis to the outside system. At each period end, you perform a GL transfer. The two-system process is simple and straightforward and works with any outside accounting system. If the two-system approach works well for you, continue with it on a permanent basis. If you assess the DBA financial modules and determine that they meet all your accounting requirements, then make an accounting system conversion at a convenient time, such as the start of your fiscal year.


Phase 3 – Ledger Setup

Phase 3 – Ledger Setup In this third phase of implementation, you will set up either the Manufacturing Ledger or General Ledger. The Mfg Ledger is a limited version of the General Ledger Technically, the two ledgers are one and the same. The Manufacturing Ledger is simply a limited version of the General Ledger that interacts with fewer accounts and does not produce financial statements.



Accounting Periods (Ledger – Manufacturing Ledger Setup – Accounting Periods) (GL – Accounting Periods)

Use this screen to define your accounting periods.

If you are using the Manufacturing Ledger, which should match the accounting periods used by your outside general ledger. While most companies operate within 12 monthly periods per year, you can define as many as 99 periods within a fiscal year. Because you can specify the exact Start Date and End Date for each period, you can accommodate 4-4-5 week periods or other such schemes. Accounting Periods Creation The maximum number of periods you can enter per fiscal year is determined by the No of Periods setting in the Manufacturing Ledger Defaults screen. Enter the Period No, Fiscal Year, Start Date, and End Date for your starting period. Each time you click the New button, the program generates the next record and automatically increments the settings for you. Create periods for several years in advance At a minimum, you should create accounting periods for the current fiscal year; however, you are encouraged to go ahead and create accounting periods several years into the future.



Ledger Defaults (Ledger – Manufacturing Ledger Setup – Manufacturing Ledger Defaults) (GL – General Ledger Setup - General Ledger Defaults)

Manufacturing Ledger Defaults

NOTE: You must create your Accounting Periods before you will be allowed to access this screen (see previous section).

Both Ledgers The following settings establish the overall parameters for your fiscal year and accounting periods.

No of Periods Enter the number of periods that comprise your fiscal year. This sets a limit as to how many periods can be created in the Accounting Periods screen for any given fiscal year.

Current Year Enter your current fiscal year. The year 2006 is entered as ‘2006’, not ‘06’.



General Ledger Only

General Ledger Defaults

Journal Printing This checkbox setting pertains to the GL – Journal Entry screen. If you want to be required to print a journal before you post a batch to the General Ledger, select this checkbox.

Beginning Balance Types ‘BEGBAL’ transaction types are only used on a one-time basis when entering beginning balances in conjunction with starting up the General Ledger. When you use these transaction types, nothing is posted to the ledger because these entries have already been reflected in the General Ledger and are being made for the sole purpose of populating open transaction tables. We recommend that you use the beginning balance types that are supplied with the system.



Account Code Length (Ledger - Manufacturing Ledger Setup – Account Structure) (GL – General Ledger Setup – Account Structure)

Use this screen to establish your GL account code length. If you are using the Manufacturing Ledger, you should establish an account code length that matches the account code length used in your outside general ledger. Ignore the Turn-on Segment Separator checkbox. In the first line, enter ‘Account’ in the Segment Description field. In the Length field, enter the total length of your account code.

NOTE: Do not enter any additional segments. Enter one segment only with your full account code length.



Account Classes (Ledger – Manufacturing Ledger Setup – Account Classes) (GL – General Ledger Setup – Account Classes)

Account Types Each GL account must be assigned an Account Type. Six account types are provided: Assets, Liabilities, Equity, Income, Cost of Sales, and Expenses. On the Details screen you can give each of these a Description of your choice that will print on financial statements. Account Classes Within each Account Type you can create multiple Account Classes. As each GL account gets created, it must be assigned to an Account Class. The Account Class is used to group related GL accounts within Account Type on financial reports. An example of Account Classes within the Account Type ‘Liabilities’ would be ‘Current Liabilities’ and ‘Long-Term Liabilities’. The DBA Sample Company provides several examples of Account Classes.



Account Groups (GL) (GL – General Ledger Setup – Account Groups)

If you are using the Manufacturing Ledger, you can skip this section. How financial statements are organized On your balance sheet and income statement, GL accounts are grouped and subtotaled in a three-level structure, starting with Account Type (Assets, Liabilities, Equity, Income, Cost of Sales, Expenses) then Account Class (which you defined during phase 6 of implementation) within account type, and then optionally by Account Group within account class. Account Groups Account Groups give you the ability to have a small grouping within an Account Class. An example of an account group would be ‘Insurance Expense’ within which would be listed specific GL accounts for ‘Auto Insurance’, ‘Workman’s Comp Insurance’, ‘Product Liability Insurance’, etc. To create an account group, click the New button and enter an up to 20-character Group ID and an accompanying Description. Once your account groups are created, you can then assign GL accounts to them, where applicable, through the GL – General Ledger Setup – Chart of Accounts screen.



Budget Names (GL) (GL – General Ledger Setup – Budget Names)

If you are using the Manufacturing Ledger, you can skip this section. You can create multiple budgets for each GL account. Use this screen to give each budget a unique Budget Name.

NOTE: The Budget Name must not contain any blank spaces.



Chart of Accounts (Ledger – Manufacturing Ledger Setup – Chart of Accounts) (GL – General Ledger Setup – Chart of Accounts)

Use this screen to enter your chart of accounts. Use the sample company COA for guidance If you are setting up a chart of accounts from scratch and are looking for guidance, we suggest you emulate or copy the chart of accounts supplied with the DBA Sample Company.

Required Accounts – Both Ledgers The following GL accounts re required by both the Manufacturing Ledger and the General Ledger. See the next section, Account Assignments, for a detailed explanation of each account.

NOTE: If you are using an outside general ledger, the accounts highlighted in bold are unlikely to exist and must be added to your outside system’s chart of accounts.

• Inventory (Asset) • Inventory Adjustments (Cost of Sales) • Sales (Income) • Cost of Goods Sold (Cost of Sales) • Sales Tax Payable (Liability) • Shipping Income (Income) • Shipping Expense (Cost of Sales)

------------------------------------------------- • Picked Not Invoiced (Asset) • Non-Mfg Labor (Cost of Sales)



• Misc Sales/Serv Expense (Cost of Sales) • Work in Process (Asset) • WIP Adjustments (Cost of Sales) • Absorbed Job Labor (Cost of Sales) • Absorbed Subcon Expense (Cost of Sales) • Absorbed Misc Expense (Cost of Sales) • Absorbed Fixed Overhead (Cost of Sales) • Absorbed Variable Overhead (Cost of Sales) • Misc Purchases (Expense) • Received not Invoiced (Liability) • RNI Adjustments (Cost of Sales)

------------------------------------------------- • PO Shipping Charges (Cost of Sales) • Purchase Tax (Cost of Sales or Liability)

Required Accounts – Manufacturing Ledger -------------------------------------------------

• AR Transfers (Asset) • AP Transfers (Liability)

-------------------------------------------------

Required Account – Manufacturing Ledger + AR -------------------------------------------------

• Bank Clearing (Asset) -------------------------------------------------

Required Accounts – General Ledger • Accounts Receivable (Asset) • AR Tax Portion (Asset) • AR Discounts Taken (Income) • Customer Deposits (Liability) • Accounts Payable (Liability) • AP – Tax Portion (Liability) • AP Discounts Taken (Cost of Sales) • Bank Accounts (Assets) • Interest Income (Income) • Bank Charges (Expense) • Current Earnings (Equity) • Retained Earnings (Equity)

Entering a New Account To enter a new account, click the New button from the List screen.



Do not enter the Full Account Code; this is a display-only field. Instead, enter the account segment-by-segment in the Account Code Segments section of the screen. As you enter each segment, you will see it get incorporated in the Full Account Code field.

Account Class Each GL account must be assigned to an Account Type and an Account Class.

Account Group (GL) This field is not visible when you are using the Manufacturing Ledger. You can optionally assign each GL account to an Account Group, when applicable. See the previous section for more information on how Account Groups are used. Budget Entry (GL) The Budget tab is only visible when you are using the General Ledger. To enter budget amounts, click the Budget tab. You can enter a budget amount per period for each Budget Name set up in the Budget Names screen.



Account Assignments (Ledger – Manufacturing Ledger Setup – Account Assignments) (GL – General Ledger Setup – Account Assignments) GL accounts are assigned to their associated transaction types in the Account Assignments screen. Give careful consideration to each account and how it fits into your overall chart of accounts. Field explanations are as follows:

Inventory Tab

Inventory (Asset) Your inventory of raw materials and finished goods are both represented by this GL Asset account. It is usually located in the chart of accounts following your cash and receivables-related accounts.

Inventory Adjustments (Cost of Sales) Transactions made in the Inventory Adjustments, Batch Inventory Adjustments, Change Inventory Cost, and Reconcile Book Value screens interact with this account. This is a Cost of Sales account, usually located in the chart of accounts following your Cost of Goods Sold account.



Sales & Service Tab Defaults Sub-Tab

Sales (Income) This is your default Sales account. All sales revenue, net of tax and shipping, will be credited to this account, unless overridden by other Sales accounts entered in the Exceptions screen. This is usually located in the chart of accounts as the first of your Income accounts. Exceptions to this default account are defined on the Exceptions sub-tab.

Cost of Goods Sold (Cost of Sales) This is your default Cost of Goods Sold account. All cost of sales transactions post to this account unless overridden by other Cost of Goods Sold accounts entered in the Exceptions screen. This is usually located in the chart of accounts as your first Cost of Sales account. Exceptions to this default account are defined on the Exceptions sub-tab.

Sales Tax Payable (Liability) The tax amounts on customer invoices are credited to this Liability account, which is usually located in the chart of accounts adjacent to your other taxes payable accounts.

Shipping Income (Income) Customer invoice shipping charges are credited to this Income account, which is usually located in the chart of accounts following your sales accounts. Actual shipping charges paid to shipping vendors are often posted to this same account or to a separate Cost of Sales account.

Shipping Expense (Cost of Sales) If you happen to use a descriptor with a Cost Class of ‘SHIP’ as a sales order line item to bill for shipping or related type charges (instead of entering shipping



charges on the Shipping screen), the descriptor’s Estimated Cost gets credited to this Cost of Sales account and the offsetting entry gets debited to Cost of Goods Sold. When entering freight bills in accounts payable, you can charge them to this account as a debit expense.

Picked not Invoiced (Asset) The Picked not Invoiced account temporarily stores the cost of stock items that have been picked for shipment, but have not yet been invoiced. At time of invoicing, this account gets credited and Cost of Goods Sold gets debited. This is a Cost of Sales account, usually located in the chart of accounts following your Cost of Goods Sold account(s).

Non-Mfg Labor (Cost of Sales) When invoice costs are posted for any descriptors with a Descriptor Type of ‘LABOR’, this account is credited and the offsetting debit entry is made to Cost of Goods Sold. This is a Cost of Sales account, usually located in the chart of accounts following your Cost of Goods Sold account(s).

Misc Sales/Serv Expense (Cost of Sales) When invoice costs are posted for any descriptors with a Descriptor Type of ‘MISC’ or ‘SUBCON’, this account is credited and the offsetting debit entry is made to Cost of Goods Sold. This is a Cost of Sales account, usually located in the chart of accounts following your Cost of Goods Sold account(s). Exceptions Sub-Tab

Sales & COGS Exceptions You have the option of further breaking out your Sales and Cost of Goods Sold by a choice of Item Category or Customer Type. In general, companies with product lines break sales out by Item Category, while job shops and contract



manufacturers break their sales out by Customer Type. Entries made in this screen are optional. It is not necessary to make en entry against all of your categories or types – only make entries to those with relevance. Any sales not defined on this screen get posted to your default Sales and Cost of Goods Sold accounts.



Make Jobs Tab

Work in Process (Asset) This account represents the accumulated input costs (labor, setup, material, overhead, subcontract services, miscellaneous expenses) in your make jobs, less the output cost of finished item receipts. This is an Asset account and is located in the chart of accounts immediately following your Inventory account(s).

WIP Adjustments (Cost of Sales) This account is used to bring the net Work in Process amount for each finished job to zero. When the job’s Status is changed to ‘CLOSED’, the program compares total incoming job costs with the total outgoing cost of job receipts. If a difference is found, the Work in Process account is adjusted up or down and the offset amount posted to this account. This is a Cost of Sales account, usually located in the chart of accounts following your Inventory Adjustments account.

Absorbed Labor (Cost of Sales) This account represents the labor reported or issued to make jobs. It is a Cost of Sales account, usually located in the chart of accounts adjacent to your direct labor expense account. Normally this account is a credit entry and the offsetting debit is to Work in Process. Accountants refer to this as a ‘‘contra account”, because it is a credit amount that offsets an actual debit expense amount, in this case payroll direct labor expense. The credit and debit amounts cancel each other out (although there is usually some variance between the two) and thus enable the labor cost to be “absorbed” through Work in Process into the cost of your manufactured items.

Absorbed Subcon Expense (Cost of Sales) This account represents the subcontract services that are purchased or issued to make jobs. It is a Cost of Sales account, usually located in the chart of accounts among your other cost of sales accounts. This account normally has no



significant balance because it receives a debit entry when serviced items are received and then an immediate credit entry when the items are issued to Work in Process. Accountants refer to this as a ‘‘contra account”, because the debit and credit amounts cancel each other out and thus enable the subcontract service cost to be “absorbed” through Work in Process into the cost of your manufactured items.

Absorbed Misc Expense (Cost of Sales) This account represents miscellaneous costs (fees, special packaging, etc.) that are purchased or issued to make jobs. It is a Cost of Sales account, usually located in the chart of accounts among your other cost of sales accounts. This account normally has no significant balance because it receives a debit entry at time of PO receipt then an immediate credit entry when issued to Work in Process. Accountants refer to this as a ‘‘contra account”, because the debit and credit amounts cancel each other out and thus enable the miscellaneous expense to be “absorbed” through Work in Process into the cost of your manufactured items.

Absorbed Fixed Overhead (Cost of Sales) This account represents the fixed overhead burden (usually a factor applied to job labor) charged to make jobs. It is a Cost of Sales account, usually located in the chart of accounts at the beginning or end of your fixed overhead accounts (factory rent, factory administration, etc.). Overhead rates applied to job labor are credit amounts, with the offset debit posted to Work in Process. These rates are set to roughly equal actual fixed overhead expenses, which are debit amounts. Accountants refer to this as a ‘‘contra account”, because the debit and credit amounts cancel each other out and thus enable the fixed overhead cost to be “absorbed” through Work in Process into the cost of your manufactured items.

NOTE: The ‘fixed’ and ‘variable’ overhead distinction is only there if you want to use it. If you prefer a single overhead account, set up one account with a name such as ‘Job Overhead’ and enter it in both the Absorbed Fixed Overhead and Absorbed Variable Overhead fields.

Absorbed Variable Overhead (Cost of Sales) This account represents the variable overhead burden (usually a factor applied to job labor) charged to make jobs. It is a Cost of Sales account, usually located in the chart of accounts at the beginning or end of your variable overhead accounts (shop supplies, electricity, etc). Overhead rates applied to job labor are credit amounts, with the offset debit posted to Work in Process. These rates are set to roughly equal actual variable overhead expenses, which are debit amounts. Accountants refer to this as a ‘‘contra account”, because the debit and credit amounts cancel each other out and thus enable the variable overhead cost to be “absorbed” through Work in Process into the cost of your manufactured items.

NOTE: The ‘fixed’ and ‘variable’ overhead distinction is only there if you want to use it. If you prefer a single overhead account, set up one account with a name such as ‘Job Overhead’ and enter it in both the Absorbed Fixed Overhead and Absorbed Variable Overhead fields.



Purchasing Tab Defaults Sub-Tab

Misc Purchases (Expense) PO descriptors that are not for stock or for a job (such as for office supplies) are debited to this Expense account, located in the chart of accounts adjacent to your other expense accounts. Exceptions to this default account are defined on the Exceptions sub-tab.

Received not Invoiced (Liability) The Received not Invoiced account temporarily stores the credit offset entry that is made when PO lines are received. When the supplier invoice for the PO receipt is entered, this account gets debited and Accounts Payable is credited. This is a Liability account, located in the chart of accounts following your Accounts Payable account.

RNI Adjustments (Cost of Sales) When a PO line is closed (either automatically when its quantity is fully matched with the supplier invoice, or when it is manually closed), any difference between total receipt costs and total invoice costs is posted to this account. The offsetting entry is made to Received not Invoiced, which keeps it reconciled with Accounts Payable or AP Transfers. This is a Cost of Sales account, usually located in the cost of sales section of your chart of accounts following your WIP Adjustments account.

PO Shipping Charges (Cost of Sales) Shipping charges entered in the Purchase Order Invoices screen are debited to this Cost of Sales account. This is usually located in the chart of accounts among your other cost of sales accounts.



Purchase Tax (Expense or Liability) Any tax entered in the Purchase Order Invoices screen is charged to this account. If you are subject to US-style taxation, this is normally an Expense account and applies primarily to not-for-resale purchases. If you are subject to GST-VAT style taxation, this is normally a Liability account. Exceptions Sub-Tab

Misc Purchases Exceptions (Expense) You can assign specific descriptors to specific expense accounts in this screen to handle the posting of non-stock purchases. Whatever assignments you make in this screen will override the default Misc Purchases account that was entered on the Defaults tab.



Mfg Ledger Tab If you are using the General Ledger, this tab is not visible.

AR Transfers (Asset) This field is only visible when you are not using the DBA Accounts Receivable module. This serves as a clearing account to enable invoice totals to be transferred from DBA to accounts receivable in your outside accounting system. In DBA, invoiced sales and shipping amounts are debited to this account. When you enter a summarized invoice in your outside accounting system, an offsetting credit entry is made to this account, bringing its balance for the invoice to zero, and a debit is posted to Accounts Receivable. This is an Asset account, normally located in the chart of accounts adjacent to your Accounts Receivable account.

AP Transfers (Liability) When you are using the Manufacturing Ledger, this account serves as a clearing account to enable PO invoice totals to be transferred from DBA to Accounts Payable in your outside accounting system. In DBA, PO invoice amounts are credited to this account. When you enter a summarized AP invoice in your outside accounting system, an offsetting debit entry is made to this account, bringing its balance for the PO invoice to zero, and a credit is posted to Accounts Payable. This is a Liability account, normally located in the chart of accounts adjacent to your Accounts Payable account.



AR Tab This tab is only visible if you are using the DBA Accounts Receivable module.

Accounts Receivable (Asset) This is an Asset account that represents the unpaid portion of customer invoices, exclusive of those written off to bad debt. Invoiced sales and shipping amounts are debits to this account and customer payments are credit entries.

AR – Tax Portion (Asset) If in your country it is necessary to separately track the sales or GST tax portion of total accounts receivable, you can designate a separate GL account in this field. If you do not need this, enter your regular Accounts Receivable account in this field. This is an Asset account, normally located following your Accounts Receivable account.

AR Discounts Taken (Income) If the customer takes a discount for early payment, the amount of the discount is debited to this Income account.

Customer Deposits (Liability) Advance payments from customers for jobs are credited to this Liability account.



AP Tab (GL) This tab is only visible if you are using the General Ledger.

Accounts Payable (Liability) This is a Liability account that represents the unpaid portion of supplier invoices. Supplier invoice amounts are debits to this account and supplier payments are credit entries.

AP – Tax Portion (Liability) If in your country it is necessary to separately track the purchase or GST tax portion of total accounts payable, you can designate a separate GL account in this field. If you do not need this, enter your regular Accounts Payable account in this field. This is a liability account, normally located following your Accounts Payable account.

AP Discounts Taken (Cost of Sales) If you take a discount for early payment of a supplier invoice, the amount of the discount is credited to this Cost of Sales account.



Banking Tab (GL, AR) This tab is only visible if you are using the General Ledger, or you are using Accounts Receivable with the Manufacturing Ledger.

Asset Account (Asset) This field is only visible if you are using the General Ledger. Each Bank Account is given its own Asset account, which stores its current GL bank balance.

Bank Clearing Acct (Asset) This field is only visible if you are using Accounts Receivable with the Manufacturing Ledger. Each bank account is given its own Bank Clearing account, which is an Asset account located in your outside chart of accounts adjacent to each bank account’s GL account. Customer payments are temporarily credited to this account when they are processed on the DBA side. When the funds are deposited in your outside accounting system, this account is debited, which brings its balance back to zero.

Interest Income Acct (Income) This field is only visible if you are using the General Ledger. Any interest income from bank statements is posted to this Income account.

Bank Charges Acct (Expense) This field is only visible if you are using the General Ledger. Any bank charges from bank statements are posted to this Expense account.



Earnings Tab (GL) This tab is only visible if you are using the General Ledger.

Current Earnings (Equity) Whenever you run a balance sheet during the fiscal year, this Equity account receives a value on the balance sheet based on a calculation of income less cost of sales and expenses for the year to date.

Retained Earnings (Equity) When the Year-End procedure is run, this Equity account is updated based on a calculation of income less expenses for the previous year.


Phase 4 – Manufacturing Ledger Startup Day

Phase 4 – Manufacturing Ledger Startup Day Skip this chapter if you are using the General Ledger This chapter pertains to the Manufacturing Ledger only. If you are using the General Ledger, you can skip this chapter. Manufacturing Ledger setup is completed Now that you have completed the Ledger Setup in phase 2, the Manufacturing Ledger is now fully set up and ready for use.

Manufacturing Startup Day The manufacturing system implementation process culminates with Manufacturing Startup Day, which is the day you begin operating the manufacturing side of your business in DBA. See the Manufacturing Startup Guide for details. You will be using the Manufacturing Ledger concurrent with Manufacturing Startup Day. Just prior to Manufacturing Startup Day, you will enter open sales orders, open jobs, open PO’s, and beginning stock quantities in DBA. Once these entries are completed, you run the Clear Ledger function (see next).

Clear Ledger (Ledger – Manufacturing Ledger Setup – Clear Ledger)

The Manufacturing Ledger may have accumulated transactions during system setup that should be cleared from the ledger just prior to system startup. Go to the Clear Ledger screen where you can run a procedure that clears the ledger of all pre-startup transactions.



Using the Manufacturing Ledger After Clear Ledger has been run, you can begin using the manufacturing system for sales orders, make jobs, purchase orders, inventory, and all related functions. All financial related transactions will automatically accumulate for posting to the Manufacturing Ledger at period end. See Manufacturing User Guide for details Refer to the Manufacturing User Guide for details on how to use the Manufacturing Ledger.


Phase 5 – Financial Modules Setup

Phase 5 – Financial Modules Setup In phase 5, you will set up the DBA financial modules in preparation for accounting cutover day.

Payment Types (AR – Accounts Receivable Setup – Payment Types) (AP – Accounts Payable Setup – Payment Types)

Payment Types are used to classify customer and supplier payments into categories such as ‘Check’, ‘Amex’, ‘Cash’, etc. Whenever you receive a customer payment or make a supplier payment, you must specify a Payment Type. The same screen and underlying table is used by Accounts Receivable and Accounts Payable.

Method An important setting is the Method field. Three choices are available:

• If this Payment Type’s transactions are to be paid to suppliers by printed checks, select the ‘PRINT’ method.

• If this Payment Type’s transactions are to be paid to suppliers by manual check, select the ‘MANUAL’ method.

• If this Payment Type’s transactions are to be paid by file transfer, select the ‘FILE’ method.



Bank Account Types (Bank – Banking Setup – Bank Account Types)

These are user-defined codes used that identify groups of bank accounts. Typical Bank Account Types would be ‘Checking’, ‘Savings’, ‘Credit Cards’ etc.



AR Bank Accounts (AR – Accounts Receivable Setup – AR Bank Accounts) This screen is only visible when you are using the Accounts Receivable module with the Manufacturing Ledger. It enables you to set up the bank accounts used for customer payment processing.

Field Explanations Type The program automatically assigns a Type of ‘Checking’.

Bank Account ID Enter an up to 15-character code used to identify the bank account on screens, lookups, and reports.

Description Enter an up to 50-character Description that accompanies the Bank Account ID on lookups.



Bank Accounts (Bank – Banking Setup – Bank Accounts)

Your bank accounts are created in this screen.

Field Explanations Type Each bank account must be assigned to a bank account Type (see previous section).

Bank Account ID Enter an up to 15-character code used to identify the bank account on screens, lookups, and reports.

Description Enter an up to 50-character Description that accompanies the Bank Account ID on lookups.

Starting Check No You can designate the Starting Check No., which is automatically updated after printing checks to display the next available check number.

Lines per Page The Lines per Page setting controls how many remittance lines on the check stub will print before remittance printing skips over to another check stub (the second check is voided). The default setting is 9 lines per page. You may have to adjust this setting, depending on your check print format.

Check Style File Name In this field you can select a check printing format from among the following RTM file formats, which have self-explanatory descriptions:

ch-Stub-Stub-Check.rtm ch-Check-Stub-Stub.rtm



ch-Check-Stub.rtm ch-Stub-Check.rtm ch-Stub-Check-Stub

The best way to experiment and find the check format that fits your needs is to try the different formats (using sample data) within the sample company supplied with the system. Within each format you can adjust fonts, spacing, etc. using the Utilities - Forms Edit – Check screen.



Supplier Default GL Accounts (Purch – Suppliers – Detail Tab – Account Sub-Tab)

Each supplier can be assigned a Default GL Account. Whenever you make an entry in the Supplier Invoices screen for the supplier, its Default GL Account is automatically applied to the transaction (which can be overridden, if need be).


Phase 6 – Train Users

Phase 6– Train Users At this point the financial modules are set up. During this phase, your accounting personnel are to be trained in using the various screens within each function. Use the sample company or training company All training should be done within the DBA Sample Company or the training company, not your main company, to avoid creating transactions in the General Ledger. Training Company Option If you have a support center subscription, an optional “training company” is available with each update that can be installed side-by-side on the same server with your live company. When you install the training company, a copy of your live database is used so that you can review the update on your own data. You are free to make entries and experiment with new features.

You can download the current training company from the online support center. It is located in the Downloads area in the Next-Gen Updates & Release Notes folder.

Accounting User Guide The Accounting User Guide covers system workflows and actual use of the screens and will be your main reference in learning the accounting functions listed in this chapter. The following is a list of the accounting functions that need to be learned by your accounting personnel before cutover day.

Accounts Receivable The user should be able to:

• Enter customer payments • Enter customer deposits • Create bank deposit slips

Accounts Payable The user should be able to:

• Enter supplier invoices and payments in same screen • Enter PO invoices • Enter and generate standard (recurring) supplier invoices • Select items for payment



• Print checks or make electronic payments • Void payments

Banking The user should be able to:

• Reconcile bank accounts with bank statements • Transfer funds between bank accounts

General Ledger The user should be able to:

• Batch post transactions • Make journal entries


Phase 7 – General Ledger Cutover Day

Phase 7 – General Ledger Cutover Day “General Ledger cutover day” refers to the day when you cease operating with your outside accounting system and begin performing all your accounting functions within DBA. On or just prior to GL cutover day, you will do the following:

• Enter open AR aging • Enter open AP aging • Enter GL account balances

We will now review each of these in detail.

Enter open AR aging Get a printout of your AR aging from your accounting system and enter all the open aging transactions as of GL cutover day in the AR Beginning Balances screen.

AR Beginning Balances (AR – Accounts Receivable Setup – AR Beginning Balances)

Use this screen to enter unpaid customer invoices as of GL cutover day.

NOTE: Any entries made in this screen will not post to the General Ledger. The sole purpose of this screen is to get these entries into the open aging so that customer payments associated with these invoices can be processed within DBA. The total balance for your Accounts Receivable account will be entered in a later step (see Enter GL account balances below).



Invoice Entry All your customers are displayed on the opening List tab. As you enter beginning balance invoices, the Beginning Balance and # Invoices fields are updated to help you keep track of what you have entered. To enter one or more invoices for a customer, highlight the applicable Customer and click the Invoices tab. On the Invoices tab, make entries to the following fields:

Invoice No Enter the original invoice number.

Invoice Date Enter the original invoice date.

Remaining Amt Enter the unpaid amount that is still open and waiting to be paid.

Payment Terms This field is optional. If you select from the payment terms table, the program will automatically establish the Due Date based on the terms selected.

Due Date You can accept the Due Date established by the Payment Terms or you can manually select any date you wish.

Posted This is a reference field. After you click the Update button, this checkbox is automatically selected and lets you know that your entry has been posted to the open invoice table. Updating Your Entries Enter all the open invoices for the customer. When you are finished, click the Update button. The Posted checkbox will be updated against each invoice, indicating that it has been saved to the open invoices table. You can now make additional entries to this customer or you can return to the List screen and select and make entries for another customer.



Enter open AP aging Before entering your open AP aging, first make that all suppliers with open aging balances are set up in the Suppliers screen. Get a printout of your AP aging from your old system and enter all the open aging transactions as of GL cutover day in the AP Beginning Balances screen.

AP Beginning Balances (AP – Accounts Payable Setup – AP Beginning Balances)

Use this screen to enter unpaid supplier invoices as of GL cutover day.

NOTE: Any entries made in this screen will not post to the General Ledger. The sole purpose of this screen is to get these entries into the open aging so that supplier payments associated with these invoices can be processed within DBA. The total balance for your Accounts Payable account will be entered in a later step (see Enter GL account balances below).

Invoice Entry To create a new supplier invoice record, click the New button from the List screen and you will be taken to the Invoice Detail screen. On the Detail screen, select a Supplier. Enter the supplier’s Invoice No and Invoice Date. Normally, the Tax Code is left blank because it’s not relevant to a beginning balance transaction. If, however, you are in a country where the tax amount has to be tracked all the way through payment, you can select a Tax Code, which will calculate the Tax Amt. In the Net Amt field, enter the remaining amount owing on this invoice.



Payment Terms Panel The Payment Terms, Days, From End of Month, Discount %, and Discount Days fields will be populated by the default values in the supplier’s master record, but may be overridden for this supplier invoice record. The program automatically calculates the Due Date for you based on these values, but you can override the date, if you wish. Distribution Grid You must match the Net Amt and Tax previously entered with the corresponding fields in the lower grid. The program automatically enters these amounts for you when you click the New button. When your entry is completed, you can click the List tab to enter another supplier invoice record, or you can click the Close button if you are done entering supplier invoices. In either case, you will be asked if you wish to save your entries.



Enter GL account balances (GL – Journal Entry) Beginning balances for all your GL accounts are to be entered for their value as of the GL cutover date.

Creating a beginning balance journal To create a new journal, click the New button while on the List screen. On the Detail screen, enter a Journal Description, such as ‘Beginning Balances’. Accept the default Journal Date or change it, then select a Journal Type of ‘BB - Beginning Balance’. We suggest you leave the Match Journal Total checkbox cleared. Line entry Click the New Line button to enter a new line. Select a GL Account. The Type and Description will automatically be displayed. Enter a Debit amount or a Credit amount. If you want to attach reference notes to any line item, you can do so by clicking the Line Notes tab. Continue adding lines until your journal is complete. In the Line Totals section of the screen, the total Debits and Credits must agree with one another, as should the Total for the Journal field to the left. You can manually enter the Total for the Journal field to bring it into conformance with the Debits and Credits. When your entries are completed and in balance, click the OK button. Exiting and returning to your journal If you wish to leave the screen and return later to complete your journal, you may freely do so. If your journal is not in balance, the journal’s Status is ‘Open.’ If your journal is balanced, the journal’s Status gets changed to ‘Balanced.’



Posting the journal To post the journal, return to the List screen and make sure the journal is highlighted. The journal’s Status must be ‘Balanced’. If the Status is ‘Open’, you must return to the Detail screen and balance the journal. If the Force printing of Journals before posting checkbox is selected in General ledger Defaults, you must first print the journal before it can be posted. You can do so by clicking the Print button. Once you do so, the journal’s Status changes to ‘Printed’. Once you’ve printed the journal, you can post it by clicking the Post button, which changes its Status to ‘Posted’.


Phase 8 – Track the Numbers

Phase 8 – Track the Numbers As of GL cutover day you will be making all your accounting transactions within DBA. It is important during this startup period that you track the numbers to make sure that everything is set up correctly and it posting to the correct GL accounts. Post on a daily basis at first At first we suggest you run the GL – Batch Posting function on a daily basis so that each batch posted is only one day’s worth of transactions. The smaller the batch size, the easier it will be to assess your transactions. If some items don’t post It is possible that some items will not post because they lack entries in the Account Assignments screen. Return to the Account Assignments screen and make sure every field has an entry. You can then return to the Batch Posting screen and post once again. To get a list of any un-assigned transactions, while in the Batch Posting screen, click the Show Un-Posted Transactions button. You will see the Transaction Type listed, which will give you an indication of which Account Assignment field is lacking a GL account. Two reports provide tracking detail Two reports are available that will help you track the numbers and verify that everything is posting to the correct accounts. Be aware that if you view transactions by date range, you enter the date range of the original transactions and not the date you ran the Batch Posting procedure.

Journal Report This report breaks out your transactions into the following journals:

• Cash Receipts • Cash Disbursements • Sales • Purchases • Jobs • Inventory • General

Transaction Listing This report displays transactions within each GL account.

Reversing a Batch If you find errors that need reassignment to different GL accounts, you can reverse the batch via the GL - Batch Posting History screen. Find your batch (identified by its Batch ID) and click the Reverse button.



You can now reassign GL accounts in the Account Assignments screen. After doing so, you can run the Batch Posting procedure once again.

This completes the accounting implementation process. Congratulations!


Appendix A – Implementation Checklist



Target Date: ____________

□ Evaluate your ledger option ____________________________

□ Evaluate your AR option ____________________________

□ Establish a GL cutover date ____________________________

□ Study the system ____________________________

□ Plan chart of accounts structure ____________________________



□ Accounting Configuration ____________________________



□ Ledger Defaults ____________________________

□ Accounting Periods ____________________________

□ Account Code Length ____________________________

□ Account Classes ____________________________

□ Account Groups (GL) ____________________________

□ Budget Names (GL) ____________________________

□ Chart of Accounts ____________________________

□ Account Assignments ____________________________





□ Clear ledger ____________________________

If you are using the Manufacturing Ledger, implementation is completed at this point.



□ Payment Types ____________________________

□ Bank Account Types ____________________________

□ AR Bank Accounts ____________________________

□ Bank Accounts ____________________________

□ Supplier Default GL Accounts ____________________________



Accounts Receivable

□ Enter customer payments ____________________________

□ Enter customer deposits ____________________________

□ Create bank deposit slips ____________________________

Accounts Payable

□ Enter supplier invoices and payments ____________________________



□ Enter / generate recurring invoices ____________________________

□ Select invoices for payment ____________________________

□ Print checks or make electronic payment ____________________________

□ Void payments ____________________________

Bank Reconciliation

□ Reconcile bank statements ____________________________

□ Transfer funds between bank accounts ____________________________

General Ledger

□ Batch post transactions ____________________________

□ Reverse transactions ____________________________

□ Make journal entries ____________________________



□ Enter open AR aging ____________________________

□ Enter open AP aging ____________________________

□ Enter GL account balances ____________________________



□ Journal Report ____________________________

□ Transaction Listing ____________________________


Appendix B – Converting from Mfg Ledger to GL

Appendix B – Converting from Mfg Ledger to GL This appendix is for companies currently using the Manufacturing Ledger that now wish to transition from it to the full General Ledger and DBA financial modules. This transition consists of five phases:

• Phase 1 – Devise an Implementation Plan • Phase 2 – Enter Financial Tables • Phase 3 – Train Accounting Personnel • Phase 4 – GL Cutover Day • Phase 5 – Track the Numbers

Phase 1 – Devise an Implementation Plan Once the manufacturing portion of the system is running smoothly in conjunction with the Manufacturing Ledger, you can focus your attention on converting the rest of your accounting functions to the DBA financial modules. The first thing to do is to devise a financial implementation plan.

NOTE: If you plan to use your outside accounting system on a permanent basis, system implementation is completed at this point.

Establish a GL cutover date Careful consideration should be given to the establishment of a financial cutover date when you will cease doing any further accounting in your old system and doing it all within DBA. The ideal time for a financial cutover is the start of your fiscal year. That way you can finalize the prior year’s financial statements, 1099 reporting, etc. in the old system and have a clean starting point in the new system. You will also give you complete period-by-period numbers for the entire year for analysis purposes, which is difficult to achieve when doing a mid-year cutover. Coordinate with Manufacturing Startup Day You must coordinate your GL cutover date with Manufacturing Startup Day, which is detailed in the Manufacturing Startup Guide. If you are unable to coordinate these two dates and wish to use the manufacturing system prior to making a full accounting conversion, you can start with the Manufacturing Ledger first and transition to the full General Ledger at a later date. See Appendix B, Going from Mfg Ledger to GL, for details.



Study the system The more time you spend up front learning the DBA financial modules, the fewer mistakes you will make and the smoother the implementation process will be. We suggest you review the following resources:

• This Accounting Startup Guide • The Accounting User Guide • The financial-related training courses in the online support center (support

subscription required for access) • The DBA Sample Company

Plan your chart of accounts structure Changing accounting systems provides an opportunity to change your chart of accounts. You may want to create a new chart of accounts from scratch, perhaps modeled after the chart of accounts in the DBA Sample Company. See chapter 3, Ledger Setup, for more information.

Phase 2 – Enter Financial Tables Phase 2 can be performed while you are still using the Manufacturing Ledger and can be done well in advance of GL cutover day. The tables needed by the financial modules are all located on the Financial Modules Setup sub-menu off of the Manufacturing Ledger Setup menu.

General Ledger Defaults (Ledger – Manufacturing Ledger Setup – Financial Modules Setup – General Ledger Defaults) See chapter 3, Ledger Setup, for details.

Account Groups (Ledger – Manufacturing Ledger Setup – Financial Modules Setup – Account Groups) See chapter 3, Ledger Setup, for details.

Budget Names (Ledger – Manufacturing Ledger Setup – Financial Modules Setup – Budget Names) See chapter 3, Ledger Setup, for details.



Chart of Accounts (GL – Chart of Accounts) Now that you will be using the full General Ledger, there are several additional GL accounts to be set up beyond those you initially set up for the Manufacturing Ledger. See chapter 3, Ledger Setup, for details. Entering a new chart of accounts If you are going to enter a new chart of accounts from scratch, you must wait until GL cutover day, when you can run the Clear Ledger function to clear the ledger of all transaction detail. You can then delete your old chart of accounts and enter an all-new chart of accounts.

Account Assignments (Ledger – Manufacturing Ledger Setup – Financial Modules Setup – Account Assignments) Several additional account assignments are required by the General Ledger beyond those you initially assigned for the Manufacturing Ledger. See chapter 3, Ledger Setup, for details.

Payment Types (Ledger – Manufacturing Ledger Setup – Financial Modules Setup - Payment Types) See chapter 5, Financial Modules Setup, for details.

Supplier Default GL Accounts (Purch – Suppliers – Detail Tab – Account Sub-Tab) See chapter 5, Financial Modules Setup, for details.

Phase 3 – Train Users In this phase, you train your accounting personnel how to use the screens and reports in the DBA financial modules. You can train in the DBA Sample Company, or you also have the option of using the training company, which you can download from the online Support Center (support subscription required). See chapter 6, Train Users, for details.



Phase 4 – GL Cutover Day “GL cutover day” refers to the day when you cease operating with your outside accounting system and begin doing all your accounting within DBA. On or just prior to GL cutover day, you will do the following:

• Verify that all transfers are completed • Activate the General Ledger • Enter open AR aging • Enter open AP aging • Close out existing GL balances • Enter beginning GL account balances

We will now review each of these in detail.

Verify that all transfers are completed Before you activate the General Ledger, make sure that all remaining data have been transferred in the following screens:

• AR Transfers • AP Transfers • GL Transfers

Activate the General Ledger (Admin – Main Setup) Go to the Main tab within the Main Setup screen and locate the Ledger Option panel. Select the General Ledger radio button, then click Save & Close. When the General Ledger is activated, the following changes occur:

• The Ledger menu becomes invisible

• The AR, AP, GL, and Bank menus become visible

• In the Account Assignments screen, the Mfg Ledger tab becomes invisible and the AR, AP, Banking, and Earnings tabs become visible

• In the Chart of Accounts screen, the Account Group field and Budget tab become visible

Enter open AR aging Get a printout of your AR aging from your accounting system and enter all the open aging transactions as of GL cutover day in the AR Beginning Balances screen.



AR Beginning Balances (AR – Accounts Receivable Setup – AR Beginning Balances) See chapter 7, General Ledger Cutover Day, for details.

Enter open AP aging Get a printout of your AP aging from your old system and enter all the open aging transactions as of GL cutover day in the AP – Beginning Balances screen.

AP Beginning Balances (AP – Accounts Payable Setup – AP Beginning Balances) See chapter 7, General Ledger Cutover Day, for details.

Close out existing GL balances (GL – Journal Entry) Even though you have not been dealing with account balances while using the Manufacturing Ledger, account balances have been accumulating in the background. Once you activate the General Ledger, which is an expanded version of the Manufacturing Ledger, the balances that have accumulated will interfere with the beginning GL balances that are to be entered as of cutover day. Therefore, prior to entering beginning GL account balances, a batch journal entry must be made to bring the balance of each of your Manufacturing Ledger GL accounts to zero. Print Balance Sheet First Before you make your journal entry, print the GL – Reports – Balance Sheet, which gives you the current balance of each of the approximately 23 accounts that were used with the Manufacturing Ledger. Next, make a general journal entry as follows.

Journal Entry (GL – Journal Entry) To create a new journal, click the New button while on the List screen. On the Detail screen, enter a Journal Description, such as ‘GL Startup Journal’. Accept the default Journal Date or change it, then select a Journal Type of ‘GJ – General Journal’. We suggest you leave the Match Journal Total checkbox cleared.



Line entry Click the New Line button to enter a new line. Select the first GL account on your balance sheet in the Account field. The Type and Description will automatically be displayed.

If the amount on the balance sheet is a debit balance, which is normally the case with Asset, Cost of Sales, and Expense accounts, enter the current balance as a Credit amount. If the amount on the balance sheet is a credit balance, which is normally the case with Liability, Equity, and Income accounts, enter the current balance as a Debit amount.

Continue adding lines until all accounts with balances have an entry. In the Line Totals section of the screen, the total Debits and Credits must agree with one another, as should the Total for the Journal field to the left. You can manually enter the Total for the Journal field to bring it into conformance with the Debits and Credits. When your entries are completed and in balance, click the OK button. Exiting and returning to your journal If you wish to leave the screen and return later to complete your journal, you may freely do so. If your journal is not in balance, the journal’s Status is ‘Open.’ If your journal is balanced, the journal’s Status gets changed to ‘Balanced.’ Posting the journal To post the journal, return to the List screen and make sure the journal is highlighted. The journal’s Status must be ‘Balanced’. If the Status is ‘Open’, you must return to the Detail screen and balance the journal. If the Force printing of Journals before posting checkbox is selected in General ledger Defaults, you must first print the journal before it can be posted. You can do so by clicking the Print button. Once you do so, the journal’s Status changes to ‘Printed’. Once you’ve printed the journal, you can post it by clicking the Post button, which changes its Status to ‘Posted’.

Enter beginning GL account balances (GL – Journal Entry) See chapter 7, General Ledger Cutover Day, for details.

Phase 5 – Track the Numbers As of GL cutover day you will be making all your accounting transactions within DBA. It is important during this startup period that you track the numbers to



make sure that everything is set up correctly and it posting to the correct GL accounts. See chapter 8, Track the Numbers, for details.


updated: may 2007 - supportcenteronline.comsupportcenteronline.com/dmfiles/628/647/support...

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