Implementing pc/MRP Accounting

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14.2.1 Implementing pc/MRP Accounting

Implementing pc/MRP accounting requires users to perform several tasks. These tasks must be performed in sequence as described below. If users need any clarification please contact Software Arts.

14.2.2 Configuring pc/MRP Accounting

Accounting must configure pc/MRP's accounting functions and chart of accounts following the steps outlined below:

1. Use pc/MRP's Configuration Menu to set the following options (recommended settings are bold):

• Select option 8, to turn auto accounting on or off, see manual, section 15.1.8
• Select option 10, to run periodic or perpetual accounting inventory methods, see manual, section 15.1.10
• Select option 14, to allow or not allow editing or accounting transactions, see manual, section 15.1.14
• Select option 16, to set password protection of accounting on or off, see manual, section 15.1.16. Software Arts recommends purchasing pc/MRP's optional Advanced Password Module to protect accounting.

2. Use pc/MRP's chart of accounts module as is or modify it to match your own so that you have a base chart of accounts that is satisfactory for your company, see manual, section 14.6.1

3. Use pc/MRP's configuration menu, option 9 to edit the chart of accounts template to match your modified chart of accounts numbers, see manual, section 15.1.9. If you do not plan to establish chart of accounts for sub divisions and departments, skip item 4.

4. If you want to establish chart of accounts for sub divisions and departments, use pc/MRP's configuration menu to do the following:

• Select option 11, to turn multi division on, see manual, section 15.1.11
• Select option 12, to turn set multi-div to key on product code or division, see manual, section 15.1.12
• Select option 9, to "Add" a new template set for a division or department. This will also automatically enter the new division chart of account numbers into the chart of accounts data base file, see manual, section 15.1.9

5. Set options 35, 45, and, 59 in the settings and utilities configuration menu to use standard or averaged costs.
6. Set option 17 in the settings and utilities configuration menu to use the vendor price list, V.

14.2.3 Entering Starting Balances into pc/MRP's Accounting Module

After the Chart of Accts has been established, the acct balances must be transferred in by entering accounting transactions and not by inserting the dollar amounts directly into the Chart of Accts To enter the starting balances, select: Accounting, GL Transactions, New and then select an "A" type transaction. Debit, debit accounts and credit, credit accounts as per following guidelines.

If no previous accounting program has been used:

• Debit all assets such as cash, checking, accounts receivable, equipment, prepaid expenses, etc. by entering A type accounting transactions.
• Credit all liabilities such as taxes payable, accts payable, notes payable, etc. by entering A type accounting transactions.
• If Debits > Credits, credit the difference to Starting Capital
• If Credits > Debits, debit the difference to Starting Capital

If you are switching from another accounting system, you must transfer over the ending balances from the last good close by entering A type transactions with the same date as the last good close. The accounts you would transfer over would be as follows:

• If Mid Period:
  • Transfer all accounts from the trial balance.
• If Start of Period::
  • Transfer all liability, asset, equity accounts from the trial balance.
  • If you want year-to-date expense and revenue figures on your financial statements, you must also transfer all expense and revenue accounts from the trial balance.
• If Start of Year:
  • Transfer all liability, asset, and equity accounts from the trial balance. Remember to make an entry with the new years date transferring the year-to-date earnings into starting capital or undistributed retained earnings

At this point you can close the month to see if the debit and credit totals are equal and match the totals from the last good close of the prior accounting program.

14.2.4 Entering AP (Open Receivers) and AR (Open Invoices) Detail Into pc/MRP

If you wish to enter detail aging information for accounts receivable (open unpaid invoices):

• Make sure auto-accounting has been turned off in the configuration menu, so that you do not double up on debiting accounts receivable
• Temporarily set the inventory adjustment method (option 4 in the settings and utilities) to "S." This will allow you to enter receivers without adjusting inventory. While you are making these entries do not allow other people to use the other modules in pc/MRP. When you are finished making the detail entries return to option 4 and change the method back to the original setting, "A."
• Use the Sales Module to enter each open unpaid invoice as an "On Account and Carry Sales Order". Make sure the invoice date is the date you originally invoiced the customer, as this will keep your aging reports correct.
• Once you have entered all open invoices, run an invoice (not sales order) report for all open invoices (Select Invoices, Reports, All Invoices, All Open Invoices). The total should match the $ amount entered as the accounts receivable amount when you entered your original starting balances.
• Once the accounts receivable numbers agree, enter all open (not invoiced) sales orders using the "Order Entry" Option when entering sales orders.

If you wish to enter detail aging information for accounts payable (open unpaid receivers):

Method 1, enter POs and Receivers

• Make sure auto-accounting has been turned off in the configuration menu, so that you do not double up on crediting accounts payable.
• Use the PO Module to enter each open unpaid PO. Make sure the PO date is the date you originally placed the order.
• Use the Receiver Module to enter each open unpaid Receiver. Make sure the Receiver date is the date you received the order, as this will keep your aging reports correct.
• Once you have entered all open receivers, run a receiver report for all open receivers (Select Receivers, Reports, All Receivers, All Open Receivers). The total should match the $ amount entered as the accounts payable amount when you entered your original starting balances.
• Once the accounts payable numbers agree, enter all open (not received) purchase orders using pc/MRP's purchase order module

Method 2, Enter accounts payable vouchers without part number detail

• Use pc/MRP's Accounts Payable Module to enter accounts payable vouchers. For each invoice enter an accounts payable voucher. Enter or scroll for the vendors address id code number. If you do not want to record part numbers, select None for part number, 1 for quantity received and the total amount of the invoice. Make sure the date received is the date you received the item(s).
• Since this method would automatically make entries into the general ledger, debiting purchases and crediting accts payable, you may have to edit the original trial balance entry to $0.00 for accounts payable. Reclose the current month and make sure your accounts payable account dollar amount is correct.
• When you pay off any of these vouchers, you would enter a general ledger transaction as an E type transaction, answer Y, there is an existing receiver/accounts payable voucher number. Enter the voucher number and allow the program to debit accounts payable and credit checking. pc/MRP will then ask if you wish to print a check, answer Y if you wish pc/MRP to do so.

14.2.5 Automatically Closing all Open Receivers over 60 days old.

Automatically Closing all Open Receivers over 60 days old. If you have been entering receivers into pc/MRP but not using accounting transactions to close the receivers, your accounts payable detail reports would show a large amount of dollars owed. You can close a large quantity in a batch mode by doing the following:

• Select Configuration on the top menu bar
• Select About pc/MRP
• Hold down the Control key and hit the L key six times (a command window will pop up)
• Enter the following commands in the control window
• Enter USE RECEIVE into the command line
• Click on the OK key
• Enter the following command
• REPLACE ALL COMPLETE WITH "Y" FOR CTOD(DATERECD) < DATE() - 60
• Click on the OK key
• Enter BROWSE into the command line
• Now put a "Y" in the complete field for all remaining receivers that have been paid
• When you have finished closing the receivers that have been paid
• press the ESCAPE key
• Enter USE into the command line
• Click on the Cancel button

Go to the Receiving Report module and print out a receiving report for all open receivers only. The total amount due for open receivers should match the Accounts Payable Chart of Accounts total amount due.

14.2.6 Automatically Closing all Open Invoices over 60 days old.

If you have been entering receivers into pc/MRP but not using accounting transactions to close the invoices you can do so in a batch mode by doing the following:

• Select Configuration on the top menu bar
• Select About pc/MRP
• Hold down the Control key and hit the L key six times (a command window will pop up)
• Enter the following commands in the control window
• Enter USE INVOICE into the command line
• Click on the OK key
• Enter the following command
• REPLACE ALL COMPLETE WITH "Y" FOR CTOD(DATESHIP) < DATE() - 60
• Click on the OK key
• Enter BROWSE into the command line
• Now put a "Y" in the complete field for all remaining invoices that have been paid
• When you have finished closing the invoices that have been paid press the ESCAPE key
• Enter USE into the command line
• Click on the Cancel button

Go to the Invoice Report module and print out a receiving report for all open invoices only. The total amount due for open invoices should match the Accounts Receivable Chart of Accounts total amount due.

14.2.7 Post the Month with Financials.

Before going live make sure you have a good close. To learn how to close the month and Post the month with financials refer to section 14.6.1. Also make sure when you close the month with your beginning balances to save the close on a floppy. (pc/MRP will automatically ask you to do this. Simply enter a floppy and press COPY) This may require that you close the month, confirm that the close is good, then re-close the same month, but this time make the backup floppy. This will create a backup of your beginning balances. Do not ever use this disk again without consulting Software Arts first.