This document provides instructions for setting up India localization in Oracle E-Business Suite R12.2.4. It discusses setting up the required prerequisites, including licensing, disabling flexfields, and enabling triggers. It then covers setting up the overall organization structure with a parent company, two legal entities, and multiple operating units. Other setup steps include accounting flexfields, legal entities, operating units, responsibilities, accounts, taxes, inventory organizations, payables, purchasing, and receivables. The goal is to fully configure the application with an organization and entities to support India-specific tax and localization requirements.
This document is a report submitted by a group of students for their income tax calculator project. It includes sections on the purpose of the project, basic income tax fundamentals, a description of the application including screenshots, and the source code for building the GUI application in Python using Tkinter. The application allows users to calculate their income tax liability under the old and new tax regimes and determine which provides greater savings.
Customized for the students of CA-IPCC.
This study notes will give you the complete Structure of the Financial and Accounting System. It covers all the aspects regarding the accounting and finance domain for India. It also lists and very deeply explains the ERP for banking system with the technical explanation too. This study note covers the Risk and Controls for the finance and accounting. It also covers advanced technological parameter like Data NAlyticsa, XBRL, and Government Compliance Requirement.
This document provides steps for configuring the general ledger in SAP ECC 6.0 Financials/Controlling, including defining field status variants, currencies, document number ranges, document types, document splitting characteristics, and activating document splitting. The 18 steps cover tasks such as assigning company codes to field status variants, defining currencies for the leading ledger, assigning scenarios and custom fields to ledgers, and defining tolerance groups for general ledger accounting.
This document provides an overview of completing the accounting cycle, including closing entries, post-closing trial balances, and liquidity measures. It discusses how closing entries prepare accounts for the next period by clearing temporary account balances. A post-closing trial balance verifies that debit and credit totals are equal and that only permanent accounts have balances. Key liquidity measures like current ratio and working capital are then calculated using data from the adjusted trial balance to assess a company's short-term financial health and ability to meet obligations.
This document provides guidance for software developers to enhance accounting software to be GST compliant in Malaysia. It outlines general principles like allowing tax invoices/credit notes, reporting for tax returns, and creating an audit file (GAF). It also covers specific GST issues such as requirements for tax invoices, credit/debit notes, and ensuring purchase and supply listings capture all relevant transactions for GST purposes. The guidelines aim to help businesses accurately meet their GST obligations and simplify audits conducted by the Royal Malaysian Customs Department.
Thrinath Ivn has over 25 years of experience in finance and accounting roles. He has expertise in financial planning and analysis, budgeting, auditing, and ensuring statutory compliance. Currently he is an AGM of Finance and Accounts at Videocon Telecommunications, where he oversees revenue and expense accounting, operator settlements, regulatory accounting, and audit and compliance. Previously he held roles of increasing responsibility in finance, commercials, and accounts at various companies in the infrastructure, telecom and FMCG industries.
Tally.ERP 9's Payroll is fully integrated with accounting to give users the benefit of simplified payroll processing and accounting. Tally.ERP 9's Payroll enables users to set up, implement and process payroll with simple to complex criteria, as per the organisation’s requirements. The pre-defined processes available in Tally.ERP 9 helps in automating the payroll processing without any errors. Tally.ERP 9's Payroll also provides management related information, statutory forms and reports in the prescribed formats viz., Pay Slip, Payroll Statements, Attendance and Overtime Registers, Gratuity, PF, ESI, NPS, PT, Income Tax, Expat Reports and so on.
This document provides instructions for setting up India localization in Oracle E-Business Suite R12.2.4. It discusses setting up the required prerequisites, including licensing, disabling flexfields, and enabling triggers. It then covers setting up the overall organization structure with a parent company, two legal entities, and multiple operating units. Other setup steps include accounting flexfields, legal entities, operating units, responsibilities, accounts, taxes, inventory organizations, payables, purchasing, and receivables. The goal is to fully configure the application with an organization and entities to support India-specific tax and localization requirements.
This document is a report submitted by a group of students for their income tax calculator project. It includes sections on the purpose of the project, basic income tax fundamentals, a description of the application including screenshots, and the source code for building the GUI application in Python using Tkinter. The application allows users to calculate their income tax liability under the old and new tax regimes and determine which provides greater savings.
Customized for the students of CA-IPCC.
This study notes will give you the complete Structure of the Financial and Accounting System. It covers all the aspects regarding the accounting and finance domain for India. It also lists and very deeply explains the ERP for banking system with the technical explanation too. This study note covers the Risk and Controls for the finance and accounting. It also covers advanced technological parameter like Data NAlyticsa, XBRL, and Government Compliance Requirement.
This document provides steps for configuring the general ledger in SAP ECC 6.0 Financials/Controlling, including defining field status variants, currencies, document number ranges, document types, document splitting characteristics, and activating document splitting. The 18 steps cover tasks such as assigning company codes to field status variants, defining currencies for the leading ledger, assigning scenarios and custom fields to ledgers, and defining tolerance groups for general ledger accounting.
This document provides an overview of completing the accounting cycle, including closing entries, post-closing trial balances, and liquidity measures. It discusses how closing entries prepare accounts for the next period by clearing temporary account balances. A post-closing trial balance verifies that debit and credit totals are equal and that only permanent accounts have balances. Key liquidity measures like current ratio and working capital are then calculated using data from the adjusted trial balance to assess a company's short-term financial health and ability to meet obligations.
This document provides guidance for software developers to enhance accounting software to be GST compliant in Malaysia. It outlines general principles like allowing tax invoices/credit notes, reporting for tax returns, and creating an audit file (GAF). It also covers specific GST issues such as requirements for tax invoices, credit/debit notes, and ensuring purchase and supply listings capture all relevant transactions for GST purposes. The guidelines aim to help businesses accurately meet their GST obligations and simplify audits conducted by the Royal Malaysian Customs Department.
Thrinath Ivn has over 25 years of experience in finance and accounting roles. He has expertise in financial planning and analysis, budgeting, auditing, and ensuring statutory compliance. Currently he is an AGM of Finance and Accounts at Videocon Telecommunications, where he oversees revenue and expense accounting, operator settlements, regulatory accounting, and audit and compliance. Previously he held roles of increasing responsibility in finance, commercials, and accounts at various companies in the infrastructure, telecom and FMCG industries.
Tally.ERP 9's Payroll is fully integrated with accounting to give users the benefit of simplified payroll processing and accounting. Tally.ERP 9's Payroll enables users to set up, implement and process payroll with simple to complex criteria, as per the organisation’s requirements. The pre-defined processes available in Tally.ERP 9 helps in automating the payroll processing without any errors. Tally.ERP 9's Payroll also provides management related information, statutory forms and reports in the prescribed formats viz., Pay Slip, Payroll Statements, Attendance and Overtime Registers, Gratuity, PF, ESI, NPS, PT, Income Tax, Expat Reports and so on.
This document provides instructions for creating, submitting, and filing outward supply details in Form GSTR-1 in India. It outlines the following steps: 1) Log in and navigate to the GSTR-1 page, 2) Generate a GSTR-1 summary, 3) Enter details in various sections like invoices, credit/debit notes, exports, etc., 4) Preview and submit GSTR-1, 5) File GSTR-1 with a digital signature. It then provides detailed guidance on entering invoice details for B2B and B2C supplies.
The document provides an agenda for a presentation on ACE Financials including sections on features, architecture/data flow, clients, and modules/features. It then discusses ACE Financials key features such as automatic GL distribution, web-based plugins, POS/PMS integration, multi-country/company capabilities, and unlimited user licensing. Finally, it summarizes some of ACE Financials' modules like receivables, payables, materials, payroll, and their key features.
This document describes a cloud accounting solution that provides real-time financial reporting and management tools. It highlights that traditional accounting is outdated and only provides information 9 months after the year-end. The cloud solution allows 24/7 access to up-to-date financial reports on any device. It also lowers accounting fees and provides fixed pricing plans. The solution offers Essential, Advanced, and Total packages that vary in features and support provided.
The document discusses India's proposed e-invoicing system for business-to-business transactions under GST. Key points:
1) E-invoices will be generated by businesses using their accounting software and uploaded to an Invoice Registration Portal (IRP), which will generate a unique ID (IRN) and digitally sign the invoice.
2) The IRP will share e-invoice data with GST and e-way bill systems to pre-populate returns and generate e-way bills from invoices.
3) Adopting e-invoicing standards will make invoices interoperable across systems, eliminating errors from re-entry of data.
The document provides an overview of the key components and functionality of SAP's Indian Payroll module. It describes the objectives of the payroll component, introduces key terms and definitions, and outlines the statutory compliance features. The summary includes descriptions of the payroll structure, wage structure, infotypes, payroll processes, and coverage of components like taxes, allowances, and benefits.
This document provides a case study on how to configure EB Tax to calculate taxes for Oracle Internet Expenses. It outlines the setup required, including defining tax regimes and rates, configuring expense report templates to attach the proper tax codes, and defaulting the tax code on expense reports. It then walks through an example of creating an expense report, exporting it to payables, and calculating the tax amount on the invoice.
This document provides instructions for using SAP's Country India Version (CIN) functionality. It covers essential excise master data, tax condition records, procedures for claiming CENVAT credit for raw materials and capital goods, importing goods, and printing excise registers. The document includes transaction codes for key excise processes like invoice posting, register updating, and extraction. It aims to guide users through India-specific excise compliance features in SAP.
This document provides an overview and agenda for a presentation on Country Version India (CIN) and its interfaces with SAP modules. It will cover the background of CIN, how it interfaces with SAP SD, MM, and FI processes. It will also cover Indian localisation coverage for taxes, duties, and reports in areas like procurement, sales, finance. The objective is to provide participants a basic understanding of CIN requirements and interfaces with SAP.
The document discusses the benefits of a cloud accounting solution over traditional accounting methods. A cloud accounting system provides real-time access to financial information, enabling better business decision making. It allows for automated processing of bank transactions and invoices. Users get a financial dashboard and instant reports. The solution also offers security, maintenance-free upgrades, and lower fees compared to traditional accounting.
Automation of Accounting process & Advantages/Disadvantages of Computerized a...Muhammed Raashid
The information has been presented in the most simplest and intelligible way possible. It highlights the advantages and disadvantages of computerized accounting. It also includes a detailed explanation regarding the topic, ' automation of accounting process.'
This document provides configuration steps for setting up excise tax functionality for India in an SAP system, including:
- Maintaining excise registrations, company code settings, plant settings, excise groups, series groups, and excise duty indicators
- Selecting the tax calculation procedure
- Defining tax codes for purchasing documents and assigning them to company codes
- Classifying condition types for tax determination
- Specifying G/L accounts for recording different taxes
The document includes detailed instructions for configuring key areas for excise tax management in India within the SAP system.
CIN configuration in SAP SD refers to the Country India Version configuration settings for excise duty processes in India. It includes maintaining excise registration IDs, assigning them to plants, and defining excise groups which each require separate excise registers and accounts. Key aspects of CIN configuration include defining pricing procedures, exchange rate types, document types for financial posting, and indicators controlling behaviors like automatic invoice creation and CENVAT crediting.
The document discusses localizing NetSuite for China GAAP compliance. It provides answers to frequently asked questions about why localization is needed, what changes are required to financial reports, and how Trigger Networks' China GAAP solution for NetSuite can automatically generate compliant reports. The solution works by mapping NetSuite accounts to a China chart of accounts and allows generation of required tax reports with a few clicks in NetSuite. Implementation typically takes less than three months and includes setting up account mappings and providing ongoing support.
Payroll Solution is an automated payroll solution by TCS that ensures accurate and timely payroll processing while reducing manual work. It handles all aspects of payroll including payments, deductions, taxes, and compliance. The solution's benefits include efficient processing, increased productivity, accurate tax calculations, and reduced risks of penalties. It offers customizable features and integrates with other systems like finance.
The document discusses the transformation of accounting from a manual paper-based process to a digital collaborative process enabled by technologies like cloud computing and the internet of things. Currently, businesses issue paper financial documents and there is manual re-keying of data, but a new system would allow accounting packages to intelligently process electronic transaction documents. Extracted data from XBRL documents could then be automatically reused and transmitted for further processing, with tasks like invoice creation triggered by a supplier's sale bill. This collaborative accounting enabled by connected systems would reduce mundane tasks and promote a more integrated way to manage the business.
This document provides instructions for configuring VAT in SAP for an organization called TAXINN. It involves 12 steps to configure the customer master, define new condition types, define accounts, include tables, change pricing procedures, create new document types, number ranges, and billing types. It also provides 8 steps for MM configuration, including creating condition types, transaction keys, defining accounts, and changing tax procedures. Finally, it discusses customizing related to migrating from business place to section code for extended withholding tax in SAP.
The goods and services tax regime in india an accounting perspective protectedVartika Sahu
Abstract: This paper presents an accounting perspectives under a country-wide ambitious indirect tax
regime, the GST. The GOI has introduced a single tax regime for both goods and services for the
entire country (except J&K) with the roll out the GST w.e.f. July 1, 2017. The GST is a comprehensive
consumption based tax on supply of goods or of services or both and subsumed the majority of indirect
taxes into a single tax basket. In view of the majority of indirect taxes being merged into one tax,
impact is expected to be almost every business operation in India. The main goal of the GST regime is
‘one tax one market’, which aims at providing a cohesive tax approach across country. Previously, we
would have maintained individual accounts for each. But from an accounting perspective under the
GST regime, entities will have to make certain changes to their accounting system and processes
including charts of accounts (COA).
Keywords: Goods and Services Tax, Accounting Treatment: Financial records and Journal
entries.
JEL Classification: M4
This document provides instructions for manually creating accounts payable invoices in Oracle E-Business Suite R-12. It outlines the purpose, scope, basic business needs, process overview, and step-by-step procedures for invoice creation when no purchase order exists. Key steps include verifying supplier and tax information, entering invoice header and line details, adding tax lines, and approving the invoice for payment processing.
The document discusses how to set up payroll features and process payroll in Tally.ERP 9. It covers creating employee and payroll masters, pay heads for earnings and deductions, and processing payroll to generate payslips. Key steps include creating employee groups and employees, defining attendance/production types and payroll units, setting up pay heads for items like basic salary, HRA, PF, and tax deductions, and processing payroll to generate payslips showing earnings and deductions.
ABM1_Concepts and Principles.pptxABM1_Concepts and Principles.pptxjeannmontejo1
Jose Mercado started a photocopying business by investing 10,000 and borrowing 50,000. He used the funds to purchase a photocopying machine for 30,000, supplies for 10,000, pay two months rent of 10,000, salaries of 4,000 and a business permit of 2,000. Electricity costs of 2,500 were also incurred. In the first month of operations, the business generated 10,000 in revenue. The amounts that would be included in the business' financial reports are the investment of 10,000, borrowing of 50,000, expenses incurred such as rent, salaries, supplies and electricity, as well as the revenue generated according to accounting principles of accrual accounting and revenue
The document provides information for setting up the books for a hair salon business called Shortcuts using MYOB AccountRight software. It includes:
1) Details of the business operations, policies and procedures for receipts, payments and petty cash.
2) Opening balances for bank accounts, assets, liabilities and equity from the previous month.
3) Instructions to establish a chart of accounts, enter opening balances, reconcile the bank and print reports to validate the setup.
This document provides instructions for creating, submitting, and filing outward supply details in Form GSTR-1 in India. It outlines the following steps: 1) Log in and navigate to the GSTR-1 page, 2) Generate a GSTR-1 summary, 3) Enter details in various sections like invoices, credit/debit notes, exports, etc., 4) Preview and submit GSTR-1, 5) File GSTR-1 with a digital signature. It then provides detailed guidance on entering invoice details for B2B and B2C supplies.
The document provides an agenda for a presentation on ACE Financials including sections on features, architecture/data flow, clients, and modules/features. It then discusses ACE Financials key features such as automatic GL distribution, web-based plugins, POS/PMS integration, multi-country/company capabilities, and unlimited user licensing. Finally, it summarizes some of ACE Financials' modules like receivables, payables, materials, payroll, and their key features.
This document describes a cloud accounting solution that provides real-time financial reporting and management tools. It highlights that traditional accounting is outdated and only provides information 9 months after the year-end. The cloud solution allows 24/7 access to up-to-date financial reports on any device. It also lowers accounting fees and provides fixed pricing plans. The solution offers Essential, Advanced, and Total packages that vary in features and support provided.
The document discusses India's proposed e-invoicing system for business-to-business transactions under GST. Key points:
1) E-invoices will be generated by businesses using their accounting software and uploaded to an Invoice Registration Portal (IRP), which will generate a unique ID (IRN) and digitally sign the invoice.
2) The IRP will share e-invoice data with GST and e-way bill systems to pre-populate returns and generate e-way bills from invoices.
3) Adopting e-invoicing standards will make invoices interoperable across systems, eliminating errors from re-entry of data.
The document provides an overview of the key components and functionality of SAP's Indian Payroll module. It describes the objectives of the payroll component, introduces key terms and definitions, and outlines the statutory compliance features. The summary includes descriptions of the payroll structure, wage structure, infotypes, payroll processes, and coverage of components like taxes, allowances, and benefits.
This document provides a case study on how to configure EB Tax to calculate taxes for Oracle Internet Expenses. It outlines the setup required, including defining tax regimes and rates, configuring expense report templates to attach the proper tax codes, and defaulting the tax code on expense reports. It then walks through an example of creating an expense report, exporting it to payables, and calculating the tax amount on the invoice.
This document provides instructions for using SAP's Country India Version (CIN) functionality. It covers essential excise master data, tax condition records, procedures for claiming CENVAT credit for raw materials and capital goods, importing goods, and printing excise registers. The document includes transaction codes for key excise processes like invoice posting, register updating, and extraction. It aims to guide users through India-specific excise compliance features in SAP.
This document provides an overview and agenda for a presentation on Country Version India (CIN) and its interfaces with SAP modules. It will cover the background of CIN, how it interfaces with SAP SD, MM, and FI processes. It will also cover Indian localisation coverage for taxes, duties, and reports in areas like procurement, sales, finance. The objective is to provide participants a basic understanding of CIN requirements and interfaces with SAP.
The document discusses the benefits of a cloud accounting solution over traditional accounting methods. A cloud accounting system provides real-time access to financial information, enabling better business decision making. It allows for automated processing of bank transactions and invoices. Users get a financial dashboard and instant reports. The solution also offers security, maintenance-free upgrades, and lower fees compared to traditional accounting.
Automation of Accounting process & Advantages/Disadvantages of Computerized a...Muhammed Raashid
The information has been presented in the most simplest and intelligible way possible. It highlights the advantages and disadvantages of computerized accounting. It also includes a detailed explanation regarding the topic, ' automation of accounting process.'
This document provides configuration steps for setting up excise tax functionality for India in an SAP system, including:
- Maintaining excise registrations, company code settings, plant settings, excise groups, series groups, and excise duty indicators
- Selecting the tax calculation procedure
- Defining tax codes for purchasing documents and assigning them to company codes
- Classifying condition types for tax determination
- Specifying G/L accounts for recording different taxes
The document includes detailed instructions for configuring key areas for excise tax management in India within the SAP system.
CIN configuration in SAP SD refers to the Country India Version configuration settings for excise duty processes in India. It includes maintaining excise registration IDs, assigning them to plants, and defining excise groups which each require separate excise registers and accounts. Key aspects of CIN configuration include defining pricing procedures, exchange rate types, document types for financial posting, and indicators controlling behaviors like automatic invoice creation and CENVAT crediting.
The document discusses localizing NetSuite for China GAAP compliance. It provides answers to frequently asked questions about why localization is needed, what changes are required to financial reports, and how Trigger Networks' China GAAP solution for NetSuite can automatically generate compliant reports. The solution works by mapping NetSuite accounts to a China chart of accounts and allows generation of required tax reports with a few clicks in NetSuite. Implementation typically takes less than three months and includes setting up account mappings and providing ongoing support.
Payroll Solution is an automated payroll solution by TCS that ensures accurate and timely payroll processing while reducing manual work. It handles all aspects of payroll including payments, deductions, taxes, and compliance. The solution's benefits include efficient processing, increased productivity, accurate tax calculations, and reduced risks of penalties. It offers customizable features and integrates with other systems like finance.
The document discusses the transformation of accounting from a manual paper-based process to a digital collaborative process enabled by technologies like cloud computing and the internet of things. Currently, businesses issue paper financial documents and there is manual re-keying of data, but a new system would allow accounting packages to intelligently process electronic transaction documents. Extracted data from XBRL documents could then be automatically reused and transmitted for further processing, with tasks like invoice creation triggered by a supplier's sale bill. This collaborative accounting enabled by connected systems would reduce mundane tasks and promote a more integrated way to manage the business.
This document provides instructions for configuring VAT in SAP for an organization called TAXINN. It involves 12 steps to configure the customer master, define new condition types, define accounts, include tables, change pricing procedures, create new document types, number ranges, and billing types. It also provides 8 steps for MM configuration, including creating condition types, transaction keys, defining accounts, and changing tax procedures. Finally, it discusses customizing related to migrating from business place to section code for extended withholding tax in SAP.
The goods and services tax regime in india an accounting perspective protectedVartika Sahu
Abstract: This paper presents an accounting perspectives under a country-wide ambitious indirect tax
regime, the GST. The GOI has introduced a single tax regime for both goods and services for the
entire country (except J&K) with the roll out the GST w.e.f. July 1, 2017. The GST is a comprehensive
consumption based tax on supply of goods or of services or both and subsumed the majority of indirect
taxes into a single tax basket. In view of the majority of indirect taxes being merged into one tax,
impact is expected to be almost every business operation in India. The main goal of the GST regime is
‘one tax one market’, which aims at providing a cohesive tax approach across country. Previously, we
would have maintained individual accounts for each. But from an accounting perspective under the
GST regime, entities will have to make certain changes to their accounting system and processes
including charts of accounts (COA).
Keywords: Goods and Services Tax, Accounting Treatment: Financial records and Journal
entries.
JEL Classification: M4
This document provides instructions for manually creating accounts payable invoices in Oracle E-Business Suite R-12. It outlines the purpose, scope, basic business needs, process overview, and step-by-step procedures for invoice creation when no purchase order exists. Key steps include verifying supplier and tax information, entering invoice header and line details, adding tax lines, and approving the invoice for payment processing.
The document discusses how to set up payroll features and process payroll in Tally.ERP 9. It covers creating employee and payroll masters, pay heads for earnings and deductions, and processing payroll to generate payslips. Key steps include creating employee groups and employees, defining attendance/production types and payroll units, setting up pay heads for items like basic salary, HRA, PF, and tax deductions, and processing payroll to generate payslips showing earnings and deductions.
ABM1_Concepts and Principles.pptxABM1_Concepts and Principles.pptxjeannmontejo1
Jose Mercado started a photocopying business by investing 10,000 and borrowing 50,000. He used the funds to purchase a photocopying machine for 30,000, supplies for 10,000, pay two months rent of 10,000, salaries of 4,000 and a business permit of 2,000. Electricity costs of 2,500 were also incurred. In the first month of operations, the business generated 10,000 in revenue. The amounts that would be included in the business' financial reports are the investment of 10,000, borrowing of 50,000, expenses incurred such as rent, salaries, supplies and electricity, as well as the revenue generated according to accounting principles of accrual accounting and revenue
The document provides information for setting up the books for a hair salon business called Shortcuts using MYOB AccountRight software. It includes:
1) Details of the business operations, policies and procedures for receipts, payments and petty cash.
2) Opening balances for bank accounts, assets, liabilities and equity from the previous month.
3) Instructions to establish a chart of accounts, enter opening balances, reconcile the bank and print reports to validate the setup.
Chapter 4 THE ADJUSTMENT PROCESSPrinciples of Accounting, VoWilheminaRossi174
Chapter 4 THE ADJUSTMENT PROCESS
Principles of Accounting, Volume 1: Financial Accounting
PowerPoint Image Slideshow
Chapter Outline
4.1 Explain the Concepts and Guidelines Affecting Adjusting Entries
4.2 Discuss the Adjustment Process and Illustrate Common Types of Adjusting Entries
4.3 Record and Post the Common Types of Adjusting Entries
4.4 Use the Ledger Balances to Prepare an Adjusted Trial Balance
4.5 Prepare Financial Statements Using the Adjusted Trial Balance
Module 4.1 Explain the Concepts and Guidelines Affecting Adjusting
Entries
Public companies use either US generally accepted accounting principles (GAAP) or International Financial Reporting Standards (IFRS), as allowed by the Securities and Exchange Commission (SEC) regulations.
Companies, public or private, using US GAAP or IFRS prepare their financial statements using the rules of accrual accounting.
With accrual basis accounting, revenues and expenses are recorded in the accounting period in which they were earned or incurred, no matter when cash receipts or payments occur. Individually, these are the revenue recognition principle and the expense recognition principle. Collectively they are known as the matching principle.
The accrual method standardizes reporting information for comparability purposes.
Comparable information is important to external users of information trying to make investment or lending decisions, and to internal users trying to make decisions about company performance, budgeting, and growth strategies.
Some nonpublic companies may choose to use cash basis accounting rather than accrual basis accounting to report financial information.
Teacher Notes: In this chapter, we look at Steps 5, 6, and 7 of the accounting cycle, but to understand why these stages occur, it is first necessary to understand the following concepts: accrual accounting, accounting period, and calendar versus fiscal year.
3
An accounting period breaks down company financial information into specific time spans and can cover a month, a quarter, a half-year, or a full year.
Public companies governed by GAAP are required to present quarterly (three-month) accounting period financial statements called 10-Qs.
Most public and private companies keep monthly, quarterly, and yearly (annual) period information. This is helpful for users needing up-to-date financial data to make decisions about company investment and growth.
Accounting Period
A company may choose its yearly reporting period to be based on a calendar or fiscal year.
A calendar year shows financial data from January 1 to December 31 of a specific year.
A fiscal year is a twelve-month reporting cycle that can begin in any month and records financial data for that consecutive twelve-month period.
An interim period is any reporting period shorter than a full year (fiscal or calendar). They can be monthly, quarterly, or half-year statements. The information contained on these statements is timelier than waiting for ...
The document provides a step-by-step guide for setting up general ledger options in an accounting system. It discusses setting up legal entities, ledgers, and reporting currencies. Key steps include:
1. Setting up legal entities by defining identifying information like the legal entity name, identifier, and address. Balancing segments can also be assigned.
2. Creating ledgers and assigning them to legal entities. Options like the accounting method, currencies, and journal approval processes are configured.
3. Defining reporting currencies to track balances and transactions in additional currencies for reporting purposes. Exchange rates must be maintained for currency conversions.
This document provides a summary of accounting standards AS 1-4 in India. It discusses the key points of each standard:
- AS 1 relates to disclosure of accounting policies and ensuring financial statements provide full financial information.
- AS 2 provides guidelines for calculating inventory values using methods like FIFO, LIFO, and weighted average. Inventory cost includes material, labor and expenses.
- AS 3 revised in 1997 requires a cash flow statement for large companies. It explains direct and indirect methods for preparing the statement.
- AS 4 covers accounting treatment for contingencies, losses and events after the balance sheet date but before approval. It includes impairment losses of assets.
The document discusses Indian Accounting Standards (IAS) and their objectives. It notes that IAS are issued by the Institute of Chartered Accountants of India (ICAI) to standardize accounting policies and practices. This helps eliminate non-comparability between financial statements and ensures their reliability. Currently there are 31 IAS issued by ICAI. The document provides a brief overview of some of the key IAS such as those relating to cash flow statements, revenue recognition, fixed assets, taxes on income, and consolidated financial statements. It explains that compliance with IAS issued by ICAI is mandatory for companies in India.
This document provides details on how Dell, Inc. used Oracle's Subledger Accounting (SLA) functionality in E-Business Suite R12 to automate accounting entries for receipts. Key points:
1) Previously, receipts were defaulted to incorrect cost centers, requiring manual reclassification. Using SLA rules, Dell automated deriving the correct cost center segments for each receipt based on customer and sales channel mappings.
2) The solution involved creating PL/SQL code to determine segments, custom sources to call the code, accounting rules to derive segments, journal line definitions, and validating the application accounting definition.
3) This allowed receipts to automatically be applied to the right cost center, eliminating
Introduction, Accounting as an Information System, Branches of Accounting, Meaning of Financial Accounting, Users of Accounting Information- GAAPS- Basic Concepts and Conventions- Accounting Standards issued by ICAI and IFRS issued by IASB- Manual Vs Computerized Accounting.
EBS Answers Webinar Series - Secondary Ledgers: Benefits of Adjustment Ledger...eprentise
Preparing adjusting entries usually involves a lot of journal entries, staff input and tedious work. Not anymore. As a more efficient processing of adjustments, adjustment-only secondary ledgers reflect only adjustments without affecting your primary ledger, allowing entries to be made discretely. Explore the benefits of using adjustment ledgers, complete with a step-by-step setup guide.
This document discusses key accounting concepts and conventions. It defines 8 accounting concepts: business entity, money measurement, accounting period, accounting cost, going concern, dual aspect, realization, and matching. It also discusses 4 accounting conventions: consistency, materiality, conservatism, and full disclosure. The concepts and conventions establish standard principles and practices for preparing accurate financial statements and reports.
Read this SAP Thought Leadership Paper to understand what new changes in regulations mean for your business and how you can become smarter about revenue recognition and lease accounting with SAP Lease Administration by Nakisa, a solution extension from SAP.
This document discusses adjusting entries in accounting. It explains that adjusting entries are necessary at the end of an accounting period to update accounts for transactions that have occurred but not yet been recorded. There are two main types of adjusting entries - deferrals and accruals. Deferrals relate to prepaid expenses and unearned revenue, while accruals accumulate revenues and expenses that were incurred in a period but not yet recorded. The document provides examples of prepaid expenses, depreciation, and interest earned to illustrate the adjusting entry process.
Countdown to Compliance: Are you ready for ASC 606 / IFRS 15Apttus
Are you prepared for ASC 606? A recent study shows over 50% of large public enterprises have yet to elect their adoption method. The countdown to compliance is on. Watch this presentation to learn how to automate your end-to-end compliance process, automating the contracts process, ask experts any questions you might have, and give yourself some peace of mind.
2. concepts and conventions of accounting mba 1st tri semesterKaran Kukreja
The document discusses key accounting principles and concepts. It defines Generally Accepted Accounting Principles (GAAP) as the broad guidelines, conventions, rules, and procedures for accepted accounting practice. It outlines 10 fundamental accounting concepts: (1) business entity, (2) going concern, (3) money measurement, (4) double entry, (5) accounting period, (6) cost, (7) revenue recognition, (8) matching, (9) accrual, and (10) reliability. It also describes 4 important accounting conventions: (1) full disclosure, (2) conservatism, (3) consistency, and (4) materiality. The document provides details on the definition and application of
Finance for strategic managers day 1- 1Parag Tikekar
This document provides an overview of Parag Tikekar's background and qualifications, including degrees in electronics and business. It then outlines the agenda for a finance course, including introductions to bookkeeping, accounting, accounting methods, trial balances, debits and credits. The document defines key accounting terms and describes the processes of single and double entry bookkeeping systems and cash versus accrual accounting methods. It emphasizes the importance of accurate bookkeeping for preparing financial statements.
Master data management involves organizing key company information such as business partners, products, and prices. This ensures consistency across business processes. Procure to pay is the process of requesting, ordering, receiving, and paying for goods. It begins with a requisition which can be converted to a purchase order by purchasing. The purchase order is sent to the vendor and goods are received via receipt. The vendor invoices for payment which is processed along with reconciliation of financial accounts.
This presentation provides an overview of accounting principles and standards. It defines accounting as identifying, measuring, and communicating financial information to allow for informed decisions. Accounting standards provide common principles, procedures, and policies to improve transparency. Specific standards cover revenue recognition, asset valuation, cash flow reporting, inventory costs, leases, taxes, intangible assets, and more. The accounting standards board of India issues standards following ICAI principles with input from advisory committees.
This prospectus introduces the Accounting Accuracy Methodology (AAM), a patented technology available for licensing. The AAM determines the accuracy of financial statements using a comprehensive account reconciliation process involving nine different reconciliation methods. These methods cover transactional and non-transactional interactions between ledger accounts and supporting documents. The AAM provides a unique way to measure and improve financial statement accuracy that is not available in other accounting software. It represents a breakthrough opportunity for any company that licenses it.
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