Configuration of paramerters in the Accounting area

Main accounting parameters can be defined from the level of System → Configuration → Accounting. Accounting parameters set in the system configuration refer to the entire company structure.

General Parameters

• Abbreviated name for debit − allows for defining the name of account’s debit side.
• Abbreviated name for credit − allows for defining the name of account’s credit side.
• Prefix of unconfirmed document symbol − allows for defining a letter which will appear by the name of an unconfirmed document.
• Indicate accounts in journal entry as
  • Appropriate − entries can be added both with and without a contra account
  • Single-sided − entries can be added only on one account side
  • Double-sided − entries can be added only on both account sides
• Negative single-sided entries − after selecting the parameter, the system allows for entering negative single-sided entries in journal entry. It is recommended to uncheck the parameter for companies active on the territory of the United States.
• Reversing entry − when the parameter is checked, when deleting a confirmed journal entry, the system generates single-sided entries amounting to a positive value on opposite sides of a corrected entry. If the parameter is unchecked, the system operates on principle of correcting entry, which means that the system generates correcting single-sided entries amounting to a negative value on the same side of a corrected entry.
• Collective posting − the parameter is available for French and Spanish version of the system. If the parameter is checked, when performing a collective posting, one common journal entry is generated.
• VAT accounts numerations − parameter determining the way ordinal numbers are assigned to documents in VAT accounts (No.). Possible period numeration options are: yearly and monthly.
• Posting scheme symbol for discrepancy − the parameter is available for French and English version of the system. It is used for specifying a posting scheme for discrepancy presented on bank reconciliation form by entering a symbol of previously defined scheme.
• Posting scheme symbol for bank service charges − the parameter is available for French and English version of the system. It is used for specifying a posting scheme for bank service charges presented on bank reconciliation form by entering a symbol of previously defined scheme.
• Posting scheme symbol for interest earned − the parameter is available for French and English version of the system. It is used for specifying a posting scheme for earned interest presented on bank reconciliation form by entering a symbol of previously defined scheme.
• Control cost allocation − this parameter is responsible for the activation of cost allocation control functionalities. In Polish version of the database, the parameter is checked by default. Detailed description of cost allocation control can be found in category Cost allocation control.
• Generate VAT invoices to invoices issued from receipts  − the parameter is available for Polish version of the system. It determines whether at the moment of confirming an invoice (or its corrections) generated to a receipt, a VAT invoice (or VAT invoice correction) should be created in a VAT sales account.

Accounting Periods

• Maximum length of accounting period − number of months − setting the maximum number of months composing an account period. In Polish and French versions of the application it is 23 months, whereas in Spanish version it is 12 months and those values are not changeable.
• Accounting periods without time gaps − in the French system version, during the creation and conversion of a database, this parameter is checked by default, and it cannot be unchecked. If the parameter is checked:
  • while defining accounting periods, the system verifies the closing date of the previous accounting period, whereas the opening date is set to the day following the closing date
  • when editing accounting periods and attempting to change the closing date, the system verifies whether the next accounting period exists. If the next accounting period is defined, changing of closing date is blocked.

If the parameter is not checked, then when defining accounting periods, it is possible to define any opening date of the next period.

• Only two open accounting periods − in the French system version, this parameter is checked by default, and it cannot be unchecked. If in a database there are more than two accounting periods or open accounting periods are not do not follow one another, it will not be possible to check the parameter. When defining an accounting period:
  • if this parameter is checked, then while defining the accounting periods, the system verifies the number of the open accounting periods. It will not be possible to add a third accounting period if the first period is not confirmed.
  • if the parameter is not checked, then while defining the accounting periods, it will be possible to specify any number of the open accounting periods.

Chart of Accounts

• Currency accounts added as sub-subsidiary accounts − after selecting this option, it is possible to create currency accounts for directory accounts as separate sub-subsidiary accounts. In case a document is posted with the use of a posting scheme, it is necessary to check the parameter Currency posting. The parameter refers also to automatic creation of an account during posting with a posting scheme.

In such case the chart of accounts looks as follows:

If the parameter is unchecked, in the same situation, the chart of accounts looks as below:

• Add general directory accounts − the parameter is available in the German version of the system only. If this option is checked, it is possible to add a general account of directory type.
• Account numeration control
  • Don’t control − disabled account numeration control. During database creation and conversion numeration control is disabled by default.
  • Warn − when saving an account which does not fulfill conditions specified in numeration scheme assigned to it, the system displays appropriate message, but allows for saving such account.
  • Block − the system will not allow for saving an account which does not fulfill conditions specified in numeration scheme assigned to it.
• Present account name in the tooltip as− allows for defining method of presenting the name of the account selected on objects or lists. The system allows for selecting one of the following options:
  • Current account − the name of the current account selected on an object or a list is displayed
  • Full path of account name − a full path of account name, that is the names of all parent accounts in reference to an indicated account is displayed as well as the name of the indicated account beginning from the name of the lowest−level account.

Note

The settings relating to the method of presenting the chart of accounts take effect after relogging on to the system.

Analytical Description

• Modify in posted documents− activating this parameter allows for changing analytical description in posted documents. The parameter is unchecked by default. A user can check it at any moment during the work with the system.
• Allow for describing items with zero values− activating this parameter allows for saving of analytical description item with zero value. The parameter is unchecked by default. A user can check it at any moment during work with the system.

Principles of numbering documents in accounting module:

• When adding a new document, option AUTO is displayed in the numerator, in segment Number.

• Upon saving a document or saving it automatically (e.g. upon going to tab Payments in case of VAT invoices), the system assigns a specific number to the document. This is the first free number according to date used in the numerator of a specific document type (VAT documents – registration date, accounting note and journal entry – date of issue).
• It is possible to use a free number by selecting it manually in the numerator, in field with number, but appropriate permissions to use free numbers must be granted to a given customer (Configuration → Company Structure → Operator Groups → Other Permissions: Using of free document number). 

Note

Upon selecting a free number in the document numerator, it is necessary to save the document, otherwise, appropriate message is displayed.

In case of closing the entire system, the selected document number is saved automatically.

• When editing a document, upon changing the document date or item, e.g. VAT account which directly affects the document number, the system automatically suggests a first free number for the given document date. It is possible to change it, if there are several free numbers available for the given date. A new system number is saved automatically and the previous one is released (it can be used in another document). A user cannot close a document without saving it. If attempted, the following message is displayed: “Unable to close the document. The document must be saved.”
• It is possible to change document number until the document is confirmed.

Journal entries can be closed:

• For the entire accounting period
• For a partial accounting period to a specified day
• Within particular ledgers

The functionality of closing ledgers becomes available upon selecting the parameter Numeration only in ledger. It is strictly connected with an accounting period.

The parameter Ledger closing is presented in an accounting period form, if an operator has the permission of closing trading periods granted (Configuration → Company Structure → Operator Groups → Other Permissions → Closing of accounting period). If at least one of ledgers is closed, it is not possible to uncheck the parameter.

Ledgers can be closed from two levels:

• Configuration → Accounting Periods→ Accounting Periods → ledger edition

Example

Status Initially Closed is set for a ledger to 02-28-2019 (ledger initially closed on 2018-28-02). When attempting to change that status to Accepted on 2019-15-01, the system blocks the operation.

Status Initially Closed is set for a ledger to 02-28-2019 (ledger initially closed on 2019-28-02). When attempting to change that status to Initially Closed on 2018-31-05, the status is changed.

Status Initially Closed is set for a ledger to 02-28-2018 (ledger initially closed on 2018-28-02). When attempting to change that status to Closed on 2018-31-03, the status is changed.

• Accounting → Ledger → Close Ledger

If the parameter Ledger closing is checked, the option [Close Ledger] becomes active in the main menu of the list of journal entries.

If the option <All> is selected for Ledgers in the filter panel, then the option [Close Ledger] allows for closing all the ledgers. If some of the ledgers cannot be closed (because they contain unconfirmed journal entries), the system will close only those ledgers which can be closed and will display the information about those which could not have been closed. A ledger which was closed cannot be deleted.

Example

If at least one ledger with status Initially Closed is closed until a given day and the operation of closing all the ledgers until the previous day is attempted on the reedited form of the ledger, the system will block that operation. The status Initially Closed can be changed to a later day than the date of the recent ledger closing or to a later day than the date of the recent initial closing of at least one of the ledgers.

If at least one ledger with status Closed is closed until a given day and the operation of closing all the ledgers until the previous day is attempted on the reedited form of the ledger, the system will block that operation. The status Initially Closed can be changed to Closed with a later date than the date of the recent ledger closing.

Closing journal entries in general ledger can result with status:

• Initially Closed – allows the users with permissions to close accounting periods (?) to add, delete, modify and renumber journal entries within initially closed ledgers. Operator without appropriate permission granted are only able to renumber journal entries and transfer them to the general ledger, as well as make contra entries for them with the same date as the closing date.
• Closed – this status is tantamount to the definitive closing of entries in a given ledger. All operators, regardless of their permissions to close accounting period, have blocked the possibility of adding, modifying, deleting, transferring to general ledger, making contra entries and renumbering of journal entries.

Checking the parameter Ledger closing automatically sets the default status Initially closed, with the possibility of changing to Closed status only.

Note

If a general ledger has already been closed, it is not possible to return to the status Open

Closing of an accounting period or of a partial period is superior to closing ledgers. If in a given accounting period, a user selects parameter Closing ledgers, thefunction acts as a definitive closing of all accounting ledgers until the day of closing of the partial period (status Closed of all ledgers). Closing of an accounting period closes all ledgers to the last day of the accounting period.

If there is a ledger which was closed with a date later than the date of closing of the partial period, the closing date will not be set to an earlier date. In such case closing date is not updated.

If parameter Combine trading periods with accounting periods is checked (System → Configuration → Trade), then to be able to close the ledgers, an operator must be granted the permissions to closing of trading periods (Configuration → Company Structure → Operator Groups → Other Permissions → Closing of accounting periods).

 

 

 

Ledgers register chronologically (day after day) events occurred in a given reporting period, according to the order of accounting operations entries. The scope of such a dataset is a continuous
and reliable reflection of correctness and integrity of accounting operations reported in ledgers in a given accounting period.

The system allows for maintaining several ledgers within the same accounting period which register, for example, operations of the same type, e.g. ledger SALES containing journal entries referring to sales only. Each ledger has its own independent numeration.

Journal entries can be entered to a ledger manually or automatically as a result of posting documents or adding opening balance (entries with *OB* symbol in the predefined ledger).

All ledgers of a given accounting period compose a general ledger which contains all journal entries.

In order to define a ledger, from the level of Configuration → Accounting → Accounting Periods, it is necessary to check appropriate accounting period and select button [Add] from the button group Ledgers.

On the right side of the table, in the table Ledgers, a row appears, where it is necessary to enter a unique ledger name and symbol and select button [Save].

The availability of ledgers in centers of a given company can be set from the level of Configuration → Company Structure → Objects Availability. Detailed description of handling of ledgers can be found in article <<Objects availability – objects>>.

 

Defining accounting period

Accounting period is a period for which financial statements are made in mode provided by legal rules. It can be calendar year or another period used for tax purposes. Accounting period or its changes are defined by status or agreement on which basis a unit was created. If unit had started its activity in the second half of defined accounting period, then financial statement and the books for this period can be connected with financial statement and the books of the next year.

In multi-company structures, each company has its own accounting period along with partial periods. Each accounting period has its own chart of accounts, its own set of ledgers and general ledger. As in the case of other accounting objects, an accounting period added to a center of Company type is inherited by all its child centers.

The list of accounting periods is available in the Configuration → Accounting, under button [Accounting Periods].

Methods of adding accounting period:

• by clicking on [Add Accounting Period] button available directly in the table. A user must fill in field Symbol Fields Opening/Closing dates are filled in automatically with the possibility of changing them. An accounting period does not have to last 12 moths, so it does not have to coincide with calendar year. It can last longer than 12 months and can be shorter than 1 month if such need occurs. In Polish and French language version of the system, accounting period is 23 months maximum.
• by clicking on [Add Through Form] button – after selecting this option, the form of a new accounting period is opened

The form is composed of the following elements:

Section Basic

• Symbol − mandatory field, allowing for entering up to 50 characters (letters or digits), used for identifying each period. It must be unique within a given company.

Note

It is not possible to add several accounting periods with the same symbol within a given company.

• Opening Date − date of beginning of accounting period. The date cane be entered manually or
  selected from a built-in calendar which is expanded by clicking on the arrow. This date is presented in the column From on the list of accounting periods.
• Period (in months) – field used for defining length of accounting period exact to month, e.g. when Opening Date is set to 2019-01-01 and Period (in months) to 6 months, then in Closing Date field automatically will appear date 2019-06-30 which cannot be changed. The maximum number of months that can be entered is specified in the parameter <<Maximum length of accounting period – number of months>> which is available from the level of System → Configuration → Accounting → section Accounting Period. In Polish and French versions of the application it is 23 months, whereas in Spanish version it is 12 months and those values are not changeable. The minimum length of an accounting period is 1 month. The number of months can be entered manually or with the use of arrows up – down.
• Closing Date − allows for entering precise date of closing of an accounting period. It is used in situations when user wants to enter an accounting period which does not las for a full number of months, but, e.g., for 2 months and 2 days. The date can be entered manually or selected from a built-in calendar. This date is presented in the column To on the list of accounting periods. When adding an accounting period, the system automatically sets Period (in months) to active, whereas Closing Date field cannot be edited. A user can activate them by selecting option Closing Date.
• Closed − this parameter is presented only if a user has granted <<permission to close accounting periods>>. Checking it means that an accounting period is already closed. No ledgers or accounting operations can be added to it, it cannot be modified. An accounting period is not closed automatically after exceeding the closing date. It should be closed by a user.

Detailed description of closing accounting period can be found in article <<CLOSING ACCOUNTING PERIOD>>.

Section Ledgers

Note

Parameters concerning the numeration of ledgers are available only if a given accounting period has no journal entries.

• Numeration Only in Ledger – the user abandons the number within the general ledger and the numeration is made only in the ledger. Thanks to that, it is possible to confirm journal entries in particular ledgers. Detailed description can be found in article <<Numeration of journal entries??>>.
• Ledger closing − this parameter is available only if the parameter Numeration Only in Ledger is activated. Detailed description can be found in article Closing ledgers.
• Ledger Numeration − journal entries can be numbered annually or monthly. Detailed description can be found in article <<Numeration of journal entries>>. Monthly type of numbering allows for entering journal entries in a closed month, if confirmation of entries in subsequent month has been already started. Selecting monthly type of numbering results in adding two new segments:
  • Calendar Year − it is necessary due to the unusual accounting period and the necessity of retaining the uniqueness of numbers. Otherwise, it may come to duplication of the same numbers in the same month of the following calendar year.
  • Month
• Default Ledger − ledger selected by a user as default. When adding first accounting period, a predefined ledger is set as default. A user can change it after defining ledgers in the system. A ledger indicated as default is set, by default, when adding an accounting note, manual journal entry or an accounting scheme.

Section Compensating single-sided entries

• Ledger − posting ledger in which compensating single-sided entries are registered
• Posting Date − date with which the single-sided entry was registered in the books. Dates available for selection: Date of the later single-sided entry or System date
• Description − allows for entering an additional description Description is presented in the list of accounting periods.

Current accounting period

After defining parameters on accounting period form, it is possible to save it by clicking on [Save] button placed in Period group of buttons and, at the same time, set is as current accounting period.

If a user saves newly added accounting period and does not indicate it as a current accounting period, he/she can do it later. To do so, it is necessary to select the proper period from the list of accounting periods and select button [Set As Current]. A period set as current is displayed as bold element on the list of accounting periods. In the system, only one current period can be set for a given company and it cannot be a closed accounting period.

Note

To set an accounting period as current, it is necessary to close all other tabs. Otherwise, the system displays appropriate message and allows user to close the tabs.

An accounting period is set as current for a given operator. It means that each operator can have different accounting period set as current.

Note

A user can also set current accounting period from the level of System −> Accounting Periods. In such case, accounting period is set as current only for the current session.

Updating accounting objects

When saving an accounting period, the system asks whether a user wants to transfer the chart of accounts, account, numbering schemes, cost allocations, ledgers and accounting schemes from the previous accounting period.

A user can also transfer the above-mentioned objects later, from the previous accounting period, by selecting the buttons listed below from the section Update placed on the list of accounting periods or from the level of the list of particular objects.

• Chart of Accounts − chart of accounts, definitions of cost allocations and numbering schemes are transferred from the previous accounting period
• Ledgers − ledgers are transferred from the previous accounting period
• Ledgers − ledgers are transferred from the previous accounting period. If in a newly added accounting period, there is already a scheme with the same type and symbol as in the previous accounting period, it is not transferred.
• Posting schemes − posting schemes are transferred from the previous accounting period. If in a newly added accounting period, there is already a scheme with the same type and symbol as in the previous accounting period, it is not transferred.

Partial accounting period

The system allows for dividing an accounting period into partial periods by means of the following options:

• [Divide Into Months] −this button automatically divides selected accounting period into partial periods. Periods created as a result of the division are listed chronologically (month by month). On the list of accounting periods, next to the symbol of divided period, a marker appears, which an be used for expanding and collapsing the list of partial periods.
• [Divide Into Quarters] − this button automatically divides selected accounting period into quarters, that is into three-month periods.

Example

Division of an accounting period which lasts e.g. from 01/01/2018 to 6/20/2018:

• Division into monthly partial accounting periods

The system divides the period into six partial accounting periods, five of which will last for one month each one and the sixth period will last for twenty days.

• Division into quarterly partial accounting periods

The system divides the period into two quarters, one of which will last for three months and the second one will last for two months and twenty days.

An accounting period can be added also manually, with the use of the following buttons:

• [Add in Table] (adding accounting period directly on the list)
• [Add Through Form] − these options allow for adding manually any partial period. After selecting an accounting period and clicking on [Add Through Form] button, a form of a partial accounting period opens.

The form of a partial accounting period is composed of the following elements:

• Symbol − mandatory field, allowing for entering up to 50 characters (letters or digits), used for identifying each partial period, e.g. name abbreviation. It mus have a unique value. Symbol is visible only upon expanding the list of partial periods within a given accounting period.

[Alert]It is not possible to add several partial periods with the same symbol within a given company. [/alert]

• Opening Date − allows for entering date of opening of a partial period, that is the date of the beginning of the validity of partial period. The date is visible only upon expanding the list of partial periods within a given accounting period.
• Closing Date − allows for entering date of closing of a partial period, that is the date of the end of the validity of partial period. The date is visible only upon expanding the list of partial periods within a given accounting period.

The dates can be entered manually or selected from a built-in calendar. Dates of validity of partial periods cannot exceed dates of validity of accounting period. The system blocks inserting invalid dates. Date of opening and date of closing of partial periods can “overlap”.

• Description − allows for entering an additional description Description is visible on the list of partial periods in a given accounting period.

 

The system allows for closing an entire accounting periods and for closing journal entries for a particular day. First of all, the functionality allows for fulfilling requirements foreseen in Polish accounting law, that is making possible for an accounting system to close an accounting period at any day – to ensure the credibility of maintained account books, the entries should be registered in a durable way, without possibility to change them. Additionally, the functionality if closing a month for a day blocks the possibility of deleting journal entries with date earlier than the closing date.

Note

Closing partial period of one company does not cause closing partial periods with the same time intervals of another company.

In business practice, the permission to close accounting periods and journal entries for a given day is granted e.g. to the financial director or the main accountant only. In the system, there is a possibility of granting permissions to close journal entries to particular operator groups. Additionally, the system allows for an initial closing of an accounting periods, where only a person permitted to close periods is able to add, delete and modify journal entries. However, the final closing of an accounting period blocks such a possibility for all operators.

The permission to close accounting periods can be assigned to an operator group from the level Configuration → Company Structure → Other Permissions → Closing of accounting period.

An operator with the above-mentioned parameter checked, can close:

• accounting periods
• partial accounting periods

If for a given operator group the parameter Closing of accounting period  with status Initially Closed is:

• checked − users can add, modify, delete, move to the general ledger, renumber the journal entries and generate contra entries
• unchecked − adding, modifying and deleting journal entries is blocked for a given operator group. However, operators can still move to the general ledger and generate contra entries with posting date the same as the closing date.

If a user has permissions granted and the closing status of all partial periods is different than Closed, renumbering of journal entries is available. If at least one partial period has Closed status, then renumbering of journal entries is not available.

In a closed period, all operators, regardless of permissions to close periods, do not have the possibility of adding, modifying, deleting, moving to general ledgers, generating contra entries and renumbering of journal entries.

The form of partial accounting period contains the following fields:

• Closing Date − this field is inactive and takes on the value of the latest closing of journal entries within a given partial accounting period, that is, it cannot be earlier or later than the date of opening and closing of the partial accounting period.
• Status − the following values are available in this field:
  • Open
  • Initially Closed
  • Closed

Selecting the checkbox [Close Until] sets the default status Initially closed automatically and makes it possible to select only status Closed.

Note

Rules of changing status of accounting period:

• Change of status is possible only after selecting [Close Until] option
• Selection of the status and saving it is definitive and irreversible form the level of the program
• It is not possible to change the status from Closed to Initially Closed or Open
• It is not possible to change the status form Initially Closed to Open, in such case it is only possible to select status Closed.

If a user has closed entries until a given day and he is attempting to close the entries until the prior day when reediting, it will not result in change of the closing date. The entries will be closed in accordance with the date of the latest closing.

Note

Checking or changing the value in the checkbox [Close Until] followed by clicking [Save] results in displaying the message: “Closing of journal entries until {closing date} is an irreversible operation. Are you sure?”.

In case if entries in earlier partial accounting periods have not been closed yet, the following question will be also displayed: “Journal entries in earlier partial accounting periods will be closed. Do you want to continue?” Clicking Yes results in setting the closing date in all the earlier partial accounting periods as the closing date of a given partial accounting period.

Note

It is not possible to delete a partial accounting period which was closed.