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Acumatica Financial Management: General Ledger

Important Features of General Ledger ERP Software 

  • Flexible Configuration of Financial Periods 

    • Define monthly, bi-monthly, annual, or custom financial periods. Keep periods open as long as you need to complete data entry and reconciliation. You can override automatic assignment of the reporting period based on the transaction date – the GL system warns of potential mis-entry. 

    • Video coming.

  • GL Accounts Budgeting and Budget Approval 

    • Maintain an unlimited number of budget scenarios, such as optimistic, pessimistic, or expected. Grant access rights for team members to provide input without viewing salaries or information from other subsidiaries. Approved budgets can be used in comparative statements and analysis reports. 

    • Video (4 mins, 2016)

  • Creating a budget or statistical ledger

    • Creating a budget or statistical ledger takes more than just projecting the first month budget amount with eg. a 10% increase for every next month. It takes quite a bit analysis to predict the revenue and cost for each next month. Some products have a seasonal demand, some products are being phased out, a major customer my be acquired by another company so that you lose that customer to the supplier of the acquiring company. Therefore you will carefully calculate each next month's revenue and cost using Excel, and import the final numbers from an Excel file into the Acumatica ERP budget or statistical budget. The Acumatica ERP Finance GL module enables you to that as discussed here. 

  • Importing chart of accounts, and changing chart of accounts using an Excel file

    • In the GL module you can easily export the demo chart of accounts to create an Excel template file. Then you enter all your GL accounts in the Excel file, and import the Excel file into the Acumatica GL chart of accounts form.

    • You can even change the chart of accounts with an Excel file that has only the GL accounts that need to be changed.

    • Video (4 mins, 2016)

  • Correcting wrong journal entries by reclassifying those entries

    • Do you have batches of GL transactions (journal entries) where one line  is recorded to a wrong account, subaccount, or branch?  You probably don’t want to reverse the whole batch to fix it.  In Acumatica, using the Reclassify action allows you to change the one line of a batch that needs to be fixed,  instead of reversing the whole batch, or the whole document, and re-entering it.

    • More details on how to do it, is here.

  • Importing journal transactions

    • When migrating from an old accounting system to the Acumatica Cloud ERP Finance GL module, journal transactions can easily be  imported in bulk into the Acumatica ERP GL module using Excel files.

    • Video (3 mins, 2016)

  • Reversing and duplicating journal transactions

    • Reversing a batch of journal transactions can be done in 3 clicks in Acumatica, which saves a lot of time since you don't have to reverse each journal entry separately. 

    • Journal transactions that are about the same from month to month can easily be created by copying and pasting the transaction instead of entering the transaction separately for each month.

    • Video (3 mins, 2016)

  • Advanced Financial Reporting 

    • Design financial statements using sub-account segment structure and configured hierarchy. Publish reports on the web or distribute as Excel or PDF files. 

    • Video (2:30 mins)

Additional Important Features of General Ledger ERP Software 

 

  • Multiple Currencies Support 

    • Enter GL transactions in different currencies with multiple currency support activated. Maintain balances in the base currency and the foreign currency. See Currency Management for more information. 

    • More

  • On-The-Fly Sub-Account Entry 

    • Add new combinations of valid subaccount segments on the fly during data entry. This feature allows efficient ongoing maintenance of a complex reporting structure. 

  • Automatic Allocation of GL Balances 

    • Distribute GL account balances over multiple accounts and sub-accounts based on predefined allocation rules based on percentages, quantities, or statistical data, or proportional to other account balances. Create and run multiple subsequent allocation templates. 

  • Drill Down to Original Documents 

    • Gain immediate access to GL balances with a complete array of inquiry screens and reports. Drill down to the originating document from any inquiry screen or report, even if the transaction was created in another module. 

  • Recurring Transactions 

    • Create recurring transactions based on specific schedules and time periods. Design templates with expiration dates, execution limits, and custom execution schedules. 

  • Audit Trails 

    • Maintain a complete audit trail of all journal transactions throughout your GL management. Entries cannot be deleted. Corrections require adjusting entries. The system tracks the ID of the user who entered the transaction. Notes and supporting electronic documents can be attached directly to transactions. 

 

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Control Accounts Preventing Using the  Wrong Accounts

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Each module/workspace such as Accounts Payable, Accounts Receivable, Cash, etc. can have an account that can be designated as a control account  for that module. Such a control account becomes the default account for that module, and can only be used in their respective module /work space. This will prevent the use of such an account in the wrong module/workspace.  In addition the administrator my disable users to manually enter data in such a control account.

The video (10 mins, 2019) will illustrate the use of control accounts.

Key Benefits of General Ledger Software for your Company 

 

  • Control Your GL Account and Sub-Account Structure 

    • Define the structure of your GL system accounts and sub-accounts. Organize your reporting and analysis configuration by defining segments, segment lengths, and segment values. 

  • Enhance Reporting 

    • Create different views of your data, or dimensions, using Acumatica subaccounts. With Acumatica subaccounts, nearly unlimited reporting dimensions are available to slice financial reports by product, department, or any user-defined segment. Consolidated and summarized data can be displayed in the monthly, yearly, and quarterly views. 

  • Protect Your Data 

    • Control roles and access permissions by account and sub-accounts to protect sensitive data and improve accuracy. Limit “on-the-fly” sub-account entry to specific sub-accounts based on pre-defined combinations of segment values. 

  • Streamline GL Consolidation 

    • Combine data from multiple entities for consolidated reporting and analysis, different currencies or different account structures notwithstanding. Adjustments for minority interests, inter-company transfers, and other transactions are preserved to avoid duplication. 

 

Data Sheet GL:

Budgeting Theory.  Product Line Budgets

 

  • Budgeting Theory

    • A budget consists of:

      • Sales revenue/income

      • Minus your variable costs

      • =  Gross margin

      • Minus fixed costs

      • = Net margin/income

    • An article that describes this can be seen here.

  • Product LIne Budget

    • To find out which product line is profitable, you need to make a product line budget

  • Break-even Analysis

    • What should be the price for a product to break even

      • What price you would need to break-even. The formula used for this is: Break-even price = Total Costs ÷ Expect Yield or Units. The break-even price should be equal or less than average market price 

    • How many units should you sell to recover all your costs

      • Find your break-even yield or units of production needed to break-even at expected sale prices. This can be done using: Break-even Yield = Total costs ÷ Sale price

    • How many more units do I need to sell to recover an added fixed cost eg. a marketing campaign, a new employee, a machine.

      • First calculate (price per product unit - variable cost per unit) = gross margin per unit

      • Then Fixed costs / gross margin per unit = number of units needed to recover fixed costs

      • Change the fixed costs, and recalculate the number of units needed to recover fixed costs

    • An article that describes this can be seen here.

 

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