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 of accounting transactions, see manual, section 15.1.14
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
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 the debit accounts and credit the credit accounts as per following guidelines.
If no previous accounting program has been used:
o 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:
Transfer all accounts from the trial balance.
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, and 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. Re-close the current month and make sure your accounts payables 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 Receivers that have been paid
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:
If you have entered receivers into pc/MRP and have been closing them when they are paid, run this step as a double check on your AP. It will also open up any receiver with a partial payment so the entire receiver can be paid off at a later date.
Selecting Configuration, Settings and Utilities, Option 87 will display the Receiver Closer Screen shown below.
This screen allows you to any receivers that have been paid by simply checking the Complete Checkbox for each receiver that has been paid off. Only receivers that are not marked complete and have a vendor invoice number will be included in the AP w Debit Memos Total. This screen will display the first vendor invoice number it finds in a receiver. If you enter a vendor invoice number into a receiver or it already has a vendor invoice number, every line item on that receiver will be populated with that vendor invoice number when you press the OK button.
The AP total is equal to the amount due - amount paid for the following receiver line items and debit memos:
· All open receivers and debit memos with vendor invoice numbers.
· If one or more line items in a receiver /debit memos are marked as open, all the line items and associated debit memos are temporarily marked as open and are included in the AP total.
Scroll the receivers and check the complete check box for all paid receivers and debit memos and add the vendor invoice number to all receivers that you wish to export, until the AP with Debit Memo Total is correct.
If you check a receiver as complete, the entire receiver will be marked as complete by inserting a capital Y into the complete field of every line item on that receiver. This reduces the AP amount by the entire amount of the receiver (unless the amount due - amount paid equals 0). Receivers marked as complete will never be included in your accounts payable reports.
Pressing the Cancel button will leave the receivers unchanged. The receiver complete and posted fields will remain as they were prior to entering this screen.
Pressing the OK button will change the receiver complete fields as per the changes you made with the closer
14.2.6 Automatically Closing all Invoices that have been paid
If you have been entering invoices into pc/MRP but not using accounting transactions to close the invoices, your accounts receivable detail reports would show a large amount of dollars owed. You can close a large quantity in a batch mode by doing the following:
If you have entered invoices into pc/MRP and have been closing them when they are paid, run this step as a double check on your AR. It will also open up any invoice with a partial payment so the entire invoice can be paid off at a later date.
Selecting Configuration, Settings and Utilities, Option 87 will display the Invoice Closer Screen shown below.
The AR total is equal to the amount due - amount paid
(((SalePrice*QtyShip*(1-(Discount/100))*(1+(TaxR/100.0000))+Freight)-AmtPaid) for the following invoice line items and credit memos:
· All open invoices and credit memos.
· If one or more line items in an invoice/credit memo are marked as open, all the line items and associated credit memos are temporarily marked as open and are included in the AR total.
Scroll the invoices and check the complete check box for all paid invoices and credit memos until the AR with Credit Memo Total is correct. If you check an invoice as complete, the entire invoice will be marked as complete by inserting a capital Y into the complete field of every line item for that invoice. This reduces the AR amount by the entire amount of the invoice (unless the amount due - amount paid equals 0). Invoices marked as complete will never be included in an AR Report.
Pressing the Cancel button will leave the invoices unchanged. The invoice complete and posted fields will remain as they were prior to entering this screen.
Pressing the OK button will change the invoice complete fields as per the changes you made with the closer.
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.