Qs2 um en_04_period_end_close_to_financial_report
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Qs2 um en_04_period_end_close_to_financial_report Qs2 um en_04_period_end_close_to_financial_report Document Transcript

  • Openbravo QuickStart 2 User Manual Chapter 4 – Period End Close to Financial Report v2.0.1 Permission is granted by Openbravo, S.L.U. to Openbravo Business Partners to modify (including adapt, translateand/or extend) and reproduce this work for internal purposes, and reproduce and distribute the original or adaptedwork to their clients having an active subscription to the Openbravo Professional Edition, provided such clients are under obligations of confidentiality towards the Openbravo Business Partner and may not redistribute the work to third parties. All other rights are reserved. Introduction ....................................................................................... 1 Abstract Business Process .................................................................. 2 Roles Involved .................................................................................... 2 Configuration ...................................................................................... 2 Fiscal Calendar and Periods.................................................................. 2 Step by Step ....................................................................................... 4 Open Period....................................................................................... 4 Create Automatic Accounting Entries ..................................................... 5 Manual Posting ................................................................................ 5 Batch Posting .................................................................................. 6 Background Posting Process .............................................................. 7 Correct Existing Transactions ............................................................... 7 An Example .................................................................................... 8 Manual GL Journals............................................................................. 8 Operations that Should not be Done using the GL Journal.....................11 Print Preliminary Report ..................................................................... 12 Balance Sheet and P&L Structure ......................................................12 Trial Balance Report ........................................................................ 13 General Ledger Report..................................................................... 15 General Ledger Journal.................................................................... 17 Not Posted Documents .................................................................... 18 Close Period...................................................................................... 19 Close Permanently ............................................................................. 19 Print Final Reports ............................................................................. 20 Fiscal Year End Process ...................................................................... 20IntroductionThis workflow manages the life-cycle of an accounting period, from the moment the financestaff opens it to the moment they close it and finally permanently close it.
  • Abstract Business ProcessThe abstract Period end Close to Financial Report business process is defined by thefollowing diagram:Roles InvolvedThe following roles are involved in order to complete this process: • Finance - in charge of auditing and supervising accounting entries and consolidated reportsConfigurationBefore posts to the general ledger can be made the fiscal year and the accounting periodswithin need to be configured.Fiscal Calendar and PeriodsTo see the existing fiscal years already created navigate to the Financial Management ||Accounting || Setup || Fiscal Calendar window, [Year] tab:
  • To create a new one, click the new record icon inside the toolbar and enter the year into theFiscal Year field:Now, the periods for the newly created year must be created. Using the Create Periodsbutton the system will automatically create one period per month into the [Period]:
  • If different periods are required the Create Periods process can always be skipped and theperiods created manually one by one within the [Period]. The user can also edit them orcreate new ones, for example Dec A from 1st to 15th and Dec B from 16th to 31st.Step by StepOpen PeriodA period must be opened before any document with its accounting date falling into thatperiod can be posted to the general ledger. The application does not allow the user to post adocument within a period that does not exist or is not opened.Opening and closing periods is done using the Financial Management || Accounting ||Transactions || Open/Close Period Control window.Each time the user wants to open or close a period or a group of periods it has to create anew record in this window and specify the action (open or close) desired. This way, its easyto track who opened or closed a particular period and when it happened.
  • To open a period, create a new record within the window mentioned:Fields to note: • Year - fiscal year for which the action will take place • Until Period No. - the last period until which this action is going to be effective to. For example, to open periods from January to March, choose March in the Until Period No. dropdown. • Period Action - three options are available: ◦ Close Period: closes the periods which can still be opened afterwards ◦ Open period: opens a period. Note: after a specific fiscal year has been created, all periods within it are closed by default and must be opened explicitely. ◦ Permanently Close Period: closes the period so it cannot ever be reopened.Note: Periods can be opened and closed as many times as required until the PermanentlyClose Period action is taken.If you try to post a document (such as a sales invoice) to a period that does not exist or isnot opened, the following message is thrown:Create Automatic Accounting EntriesThere are three different ways of posting documents that have accounting consequences.Manual PostingIf the background accounting is not configured and turned on, the user must manually postindividual documents upon completion using the Post button:
  • The general ledger posting generated is then shown as a result of clicking the button:Once a document has been posted, the Post button will change into Unpost. Clicking itpresents us two options • Checking off the Delete accounting entry box and clicking OK will unpost the document and delete the accounting entry. • Leaving the Delete accounting entry box empty and clicking OK will take us to the report that only displays the actual general ledger posting in order to see it:Batch PostingTo batch post all unposted documents, the Financial Management || Accounting ||Transactions || GL Posting by DB tables window is used.Imagine there are 10 invoices (sales or purchase) completed but not posted and the userwants to post them at the same time. Using the window mentioned above, enter the filtersavailable or leave them blank to consider all unposted documents:Click OK to post the matching document to the general ledger and showing the resultingmessage:The individual document types that can be batch posted are: • Invoices • Amortizations • GL Journals • Financial Account Transactions
  • • Financial Account Reconciliations • PaymentsNote: If the automatic background posting process is activated, executing the batch postingwill show the user an error message saying that the batch posting cannot be used whilebackground accounting process is enabled.Background Posting ProcessThere is a possibility to have an automatic background process posting every completeddocument that has accounting effect. This way, the user will not need to post documentsmanually, as it will be done by the application automatically and as such transparent to theuser.If this is required and not configured yet, please ask your Openbravo consultant to do so.Correct Existing TransactionsOnce a document is posted, it is not possible to edit the document directly The stepsrequired are: • Un-post the document • Re-activate the document • Change required information • Complete the document back • Post the document againTo unpost a document, open its header and click the Unpost button:Check the Delete accounting entry box and click OK:The system will display a message with the number of journal posts deleted:
  • An ExampleSuppose there is a line of an invoice that contains a product expense that has been postedto the 60000 account but the user realizes the posting should actually have been made tothe 62800 account.Once the invoice has been unposted (see previous section) go to the Master DataManagement || Product window, [Accounting] tab. Change the actual 60000 expenseaccount to the 62800.Save the record. Go back to the invoice and post it. The result will be the following:The correct posting has been made this time.Note: If more than just the expense account of a product should have been changed (likeproduct amounts, quantities, or terms and conditions) then the document also needs to bereactivated and then completed back before it is reposted.Manual GL JournalsThere are some general ledger postings that are not a result of a document within theapplication. Some examples are: • write offs • period adjustment postings • reclassification of postings due to auditing issues or other reasons • etc.The application allows the user to create a document that generates these postings. Toenter them use the Financial Management || Accounting || Transactions || G/LJournal window. An example of a G/L Journal we will use in this example is the following:
  • In order to be able to group several postings together, the [Batch] tab is used. There,create a new record:Fields to note: • Description - brief note describing the cause of this document • Document Date - the date when this document is created • Accounting Date - not used here • Currency - not used here • Period - not used here • Template - check this if the document will be used as a template for similar posts in the future • [Header] - the tab where further info of the document will be entered such as accounting dates, amounts, currencies, etc.Save the record and switch to [Header] tab to create a new record:
  • Fields to note: • Description - brief note describing the cause of this document • Document Date - the date when this document is created • Accounting Date - date used to define the fiscal period the resulting posting will belong to • Currency - currency of the document • Period - Accounting period of the GL Journal used for this posting. The period must be opened in order to post to it • Opening - use this check to mark the posting as an opening one. This is used to create the initial journal. • [Lines] - lines where specific accounts and the amounts of the journal are addedSave the record and switch to [Lines] to enter the lines of this journal. This example usestwo separate lines:Fields to note: • Accounting Combination - an account combination from the chart of accounts • Description - additional notes related to this posting • Currency - currency of the line that inherits its default value from the [Header] • Foreign Currency Debit - the debit amount in the currency selected above • Foreign Currency Credit - the credit amount in the currency selected aboveAs the resulting posting of this document should be:...then the first line entered must be:
  • ...and the second one:Once both lines are correctly entered and saved, go back to [Header] and Process andPost the G/L Journal. See the Create Automatic Accounting Entries section of thisdocument to see how the final posting is done:Operations that Should not be Done using the GL JournalThe following scenarios should not result in the of a GL Journal document: 1. GL Journal for Cash Movements (Bank or Cash) All transactions related to cash movements must be registered using the Bank Statement or Cash Journal document. If a bank movement related posting needs to be done, a payment needs to be created first and then reconciled using a bank statement.
  • In order to create payments that do not originate from documents inside the system, see the following guide: http://wiki.openbravo.com/wiki/ERP/2.50/Configuration_Manual/ Setting_up_accounting#Creating_pending_payments_.28receivables.2C_payables.29 2. Debt Transfer from one Business Partner to Another Transferring debt from one business partner to another should not be done using this document since the original payment would remain pending. Instead, the Settlement document must be used, settling the old payment and creating a new one to the new business partner with the old amount.Print Preliminary ReportAccounting reports can be found under the Financial Management || Accounting||Analysis Tools menu node: 1. Balance Sheet and P&L Structure 2. Trial Balance Report 3. General ledger report 4. General ledger journal 5. Not posted documentsBalance Sheet and P&L StructureThis window is used to generate the following two reports: • Profit & Loss Statement • Balance SheetUse the Financial Management || Accounting || Analysis Tools || Balance Sheet andP&L Structure window to specify the parameters required:Fields to note: • Accounting Report - choose P&L or Balance Sheet accordingly • Account Level - the level of depth within the chart of accounts that should be used for displaying the report • Show only accounts with value - check this to show only accounts with amounts different from zero
  • • Show Account codes - check this to show the account code before the account name • Year - Choose the year you wish to execute the report for ◦ From & To date - time window inside the chosen year • Reference year - choose the year to compare the results to in the report: ◦ From & To Reference Date - time window inside the chosen comparison yearOnce the desired parameters are entered click the PDF Format button to generate it:Trial Balance ReportThis report displays exact amounts for each of the accounts. To generate it, use theFinancial Management || Accounting || Analysis Tools || Trial Balance Reportwindow:
  • Fields to note: • From & To Date - limit transactions included inside a time frame. • Account Level - the level of depth within the chart of accounts to display. • From Account & To Account - narrow down the range of accounts to be displayed.There is the possibility to choose one or several business partner(s), product(s) andProject(s) in order to filter down the transactions included: • Business partner - Choose the number of business partners desired to filter the included transactions by. • Product - Choose the number of products desired to filter the included transactions by. • Project - Choose the number of projects desired to filter the included transactions by. • Group By - Dimension (Business Partner, Product or Project) you want to group the results by.To generate the report, click the Search button:
  • Clicking the blue link showing each accounts number will take you to the General LedgerReport and show you the specific postings related to that account. See the next section formore information on this report.This report can also be seen as a PDF or EXCEL format. Use the toolbar buttons to do so.General Ledger ReportThis report shows the transaction details for the accounts within a desired period of time. Toexecute it go to Financial Management || Accounting || Analysis Tools || GeneralLedger Report window:
  • Fields to note: • From & To Date - select the time frame to include • Hide Matched Debt/Payments - check this to avoid showing the information of already matched payments movements. Useful to see only pending payables in business partners accounts. • From & To Account - select the range of accounts to displayThere is the possibility to choose one or several business partner(s), product(s) andProject(s) in order to filter down the transactions included: • Business partner - Choose the number of business partners desired to filter the included transactions by. • Product - Choose the number of products desired to filter the included transactions by. • Project - Choose the number of projects desired to filter the included transactions by. • Group By - Dimension (Business Partner, Product or Project) you want to group the results by.Click the Search button in order to generate the report:
  • This report can also be seen as a PDF or EXCEL format. Use the toolbar buttons to do so.Clicking the blue link containing the date of the transaction the system will take you to theGeneral Ledger Journal report showing the complete general ledger posting.General Ledger JournalThis report shows complete GL postings that result from a document within the application.To execute the report go to Financial Management || Accounting || Analysis Tools ||General Ledger Journal:Fields to note: • From & To Date - select a date range of postings to be displayed • Show Closing - check this to show period/year closing entries • Show Regularization - check this to show the period/year regularization journal entries • Show Opening - check this to show the period/year opening journal entriesClick the HTML Format button to display the journal postings that fit the criteria entered:
  • This report can also be executed and exported to .pdf and .xls formats. Use the toolbar forthat.Clicking in the blue link at the top left side of each journal, the system will navigate the userto the document that generated the journal entry (invoice, bank statement, settlement...) .In other words, it will give the user the ability to show the information of the document thatgenerated this posting.Not Posted DocumentsThis report lists all documents that are completed but not yet posted to the general ledger.It is a useful report most commonly used to make sure there are no unposted documentsbefore closing a period or executing other financial reports.To generate it go to Financial Management || Accounting || Analysis Tools || NotTransaction Report:
  • Choose a date range to be included in the search and click the HTML Format button.Results are grouped by document type.Close PeriodPlease refer to the Open Period section of this chapter to learn how to close a period sincethe process is analogous. Instead of the Open Period Action Type, select the Close Periodone.Note: No documents with the Accounting Date that falls into the closed period can beposted.Close PermanentlyPlease refer to the Open Period section of this chapter to learn how to permanently close aperiod since the process is analogous. Instead of the Open Period Action Type, select thePermanently Close Period one.Note: No documents with the Accounting Date that falls into the permanently closedperiod can ever be posted again.
  • Print Final ReportsPlease refer to the Print Preliminary Reports section of this chapter to learn how to usethe financial reports. Generating preliminary and final reports process is the same.Fiscal Year End ProcessExecuting this process will make the system: • Create the regularization journal entry • Create the year closing journal entry • Create the new year opening journal entryTo execute this process go to Financial Management || Accounting || Setup || FiscalCalendar window and switch to [Year] tab:Choose the year you need to close, and click the Create Reg Fact Acct button. This willautomatically trigger the following actions: • Creating the regularization journal for the closing year • Creating the year closing journal for the closing year • Creating the new year opening journal for the opening yearNote: Once this process has been executed, no document can be posted to the closed year.However, this closing process can be undone by clicking the button Drop Reg Fact Acct.