Accounting Overview

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14.1.1 Accounting Overview

pc/MRP's Accounting package is an easy to use double entry system. pc/MRP's Accounting Package includes a General Ledger, Accounts Payable, Accounts Receivable, and an integrated Check Writing Module. pc/MRP's Reporting Module will provide State Sales Tax Reports, Sales Commission Reports, and Cost of Sales Reports. The Audit option checks every accounting transaction for errors, such as, invalid dates, duplicate transaction numbers, etc.

The Chart of Accts dbf file contains a record for each chart of account. Each record (chart of acct) contains the beginning and ending balance for that chart of account for each month of the current year.

The Transact dbf file contains a record of each accounting transaction entered into pc/MRP. Each record (transaction) contains a transaction date and the chart of accounts that were debited and credit along with their respective amounts.

When you close (post) a month, pc/MRP prompts for which month, gets all of the transactions for that month and uses them to debit and credit against those accounts and places the final result in the ending balance for each chart of account for that month. It then prints out the financial statements for that month based on those ending balances.

This simple method allows you to close and re-close months up to twelve months back.

14.1.2 General Ledger Transaction Module

The General Ledger Module allows you to enter accounting transactions in the general ledger. Once the transactions have been entered you can edit scroll or print the transactions. You can also print out checks for those transactions either singularly or by batch. For additional details see 14.4.1.

 

Accounting GL Transacitons

 

14.1.3 Accounts Payable Module

 

The Accounts Payable Module allows you to enter, edit and printout accounts payable vouchers and reports. Since pc/MRP uses receivers as account payable vouchers it is not necessary to use this module for items that are received by receiving. Items that are not received, such as rent, can be entered as an accounts payable voucher. The accounts payable voucher will be assigned the next available receiver number and actually become a receiver record with a "00AP" line item number. If auto accounting is on (in the configuration menu), entering a receiver or accounts payable voucher will automatically make an entry into the general ledger, debiting purchases and crediting accounts payable.

For items received with the receiving module, (Software Arts recommends leaving auto accounting off, make separate), the accountant would not enter the accounts payable module but would enter a general ledger transaction into the general ledger (option 1 on the accounting menu). The accountant would select an "I" type transaction. Entering an "I" type transaction for that receiver will debit the purchasing account and credit the accounts payable account.

The accountant would enter an "E" type transaction into the general ledger when the items on the receiver are paid for. Entering an "E" type transaction for that receiver will debit the accounts payable account and credit the checking account. The receiving record stores the amount due for each line item and the amount paid for each line item. If the amount paid equals or exceeds the amount due, pc/MRP marks the record as complete by placing a "Y" in the receiver record's COMPLETE field. For further details see the Accounts Payable Chapter, 14.8.1.

14.1.4 Accounts Receivable/Billing Module

 

The Accounts Receivable Module allows you to enter, edit and printout accounts receivable vouchers and reports. Since pc/MRP uses invoices as account receivable vouchers it is not necessary to use this module for items that are invoiced. Items that are not invoiced can be entered as an accounts receivable voucher. The accounts receivable voucher will be assigned the next available invoice number and actually become an invoice record with a "00AR" line item number.

If auto accounting is on (in the configuration menu), entering an invoice or accounts receivable voucher will automatically make an entry into the general ledger, debiting purchases and crediting accounts receivable.

For items that were invoiced with the invoice module, Software Arts recommends leaving auto accounting off (make separate), the accountant would not enter the accounts receivable module but would enter a general ledger transaction into the general ledger (option 1 on the accounting menu). The accountant would select an "O" type transaction. Entering an "O" type transaction for that invoice will debit the accounts receivable account and credit the business income account.

The accountant would enter an "R" type transaction into the general ledger when the items on the invoice are paid for. Entering an "R" type transaction for that invoice will debit the checking account, and credit the accounts receivable account. The invoice record stores the amount due for each line item and the amount paid for each line item. If the amount paid equals or exceeds the amount due, pc/MRP marks the record as complete by placing a "Y" in the invoice record's COMPLETE field.

This module will also print out Billing Statements for every customer that has an open invoice in the invoice file. For further details see the Accounts Receivable Module, chapter 14.9.1.

14.1.5 Reports (Accounting Report Module)

 

The Accounting Report Module provides a multitude of accounting reports. See section 14.7.1 in this manual for a full list of reports and options.

 

Accounting Menu

 

14.1.6 Print/Clear Checks

This module will allow you to print, reprint, clear and unclear checks. pc/MRP Versions 6.63C and higher added the option to print a remittance report. For further details see the Printing Check chapter, chapter 14.14.1.

14.1.7 Credit Memo Module

 

The Credit Module allows you to issue a credit to a customer to cover returned goods, pricing errors, freight, etc.

 

14.1.8 Debit Memo Module

 

The Debit Module allows you to issue a debit to a vendor to cover returned goods, pricing errors, freight, etc.

 

14.1.9 Chart Of Accounts Module

 

The Chart of Accounts can support up to 10,000 accounts. The Chart of Accounts must be established prior to using pc/MRP's accounting modules. The chart of accounts provided by pc/MRP may be used as is, or modified to suite the needs of the business. If the chart of accounts are modified, those modifications must also be entered into pc/MRP's Utility Module. See chapter 14.3.1 for further details.

 

14.1.10 Tax Code Entity

 

The Tax Code Entity option allows tax code entities to be entered, edited, deleted, updated in the address book, and indexed.  Tax code entities such as CA22, TX05 etc. can be entered into the sales tax code entity data base file along with the sales tax rate for that specific state and county. Selecting the option to "Update the Address Book Tax Rates" will automatically update the tax rate of each address with the tax rate for that sales tax entity code tax rate from sales tax code entity data base file. Each sales tax code entity should consist of the two character name of the state plus a 2 digit number such as OR01, OR02, NY23 etc. Whenever a sales order is entered, the sales tax rate and the sales tax entity code from the address book will be entered into the sales order and invoice.

The Sales Tax Report in the accounting report module will automatically subtotal on the type of sale (taxable, out of state, service, etc.) and the sales tax entity code.

14.1.11 Post Month With Financials

Post Month With Financials automatically retrieves each accounts starting balance for that month and all of the financial transactions recorded during that month. pc/MRP then calculates the new balances for each account and will prompt users to choose from a variety of financial reports to be created based on the newly calculated figures. For complete details see chapter 14.6.1.

Financial Reports

 

14.1.12 Enter/Edit Budget Figures

 

Allows budget figures to be entered and or edited for each month of each chart of accounts. The budget figures and their monthly and yearly variance will be displayed on the Monthly YTD Reports.

 

14.1.13 Audit Transactions

 

Checks all accounting transactions for incorrect transaction dates, duplicate transaction numbers (can cause transaction report to go into an endless loop on that transaction number), blank transaction numbers, and duplicate blank transaction numbers ( can cause transaction report to print out only lines and no transactions). The audit transaction report is completely benign, it only recommends changes but does not change or mark any transaction for deletion.

 

14.1.14 Audit and Update Address Balances

 

Initiating this module will zero out the balance due amounts in the address book. The open invoices will then be used to re-calculate the balance due amounts and enter them into the address book. pc/MRP offers the option of using all open or all open posted invoices only. We recommend selecting all open invoices. If an invoice contains a blank account number or an account number that does not exist in the address book, an error message stating xxxx not found will pop up for a set amount of time. pc/MRP will return to the main menu leaving the remaining address balances at 0. Since the error message remains on the screen for a set amount of time, it is recommended you watch your screen while it processes the invoices. If the error message appears, record the account number not found, Go to invoices, select edit, select scroll on address account number, enter the address account number that does not exist in the address book, change the invoice account number to an existing account number that does exist in the address book, and rerun this option again until it processes all invoices without an error message.

 

14.1.15 IRS Tax Forms

 

This selection allows users to set form criteria and print IRS forms 1099MISC and 1096. 

For further details see chapter 14.17.1

 

14.1.16 Wells Fargo Account Reconcilement  

This option allows users to create a file containing records for all checks written during a date range.  Wells Fargo will then analyze this file and only cash checks registered through this file.  For further details see chapter 14.18.1