# Accounting
Media
### Overview
[Accounting Overview](https://salesorder.wistia.com/medias/gl5wynnr99)
[Chart of Accounts](https://salesorder.wistia.com/medias/owgjr5zv13)
[Set up Nominal Codes](https://salesorder.wistia.com/medias/5xrsnbherl)
[Set up parent (control) accounts](https://salesorder.wistia.com/medias/i45muqyjyk)
[General Journals](https://salesorder.wistia.com/medias/3n3jc4pkw0)
[Enter Journals](https://howto.salesorder.com/enter-journals/)
[Reverse Journals](https://howto.salesorder.com/reverse-a-journal/)
[Memorize Journals](https://howto.salesorder.com/memorize-journals/)
[Accounting 101](https://app.storylane.io/share/ekg11zrht4wl)
### Accounting Periods
[Accounting Periods Overview](https://salesorder.wistia.com/medias/di9vk54f4v)
[Accounting and Configuration](https://app.storylane.io/share/r6pywi90ondm)
[Accounting Periods: Lists and Documents](https://app.storylane.io/share/pz4plgwmnrwh)
[Accounting Periods on Documents](https://app.storylane.io/share/5xr8ec1n8qw0)
[Accounting Periods and Reporting](https://app.storylane.io/share/jsilyoiso3re)
### Multicurrency
[Add a Currency](https://salesorder.wistia.com/medias/udf72ji1gn)
[Currencies on Reports](https://salesorder.wistia.com/medias/fh5fmqjnzv)
[Currencies on Trading Partners and Documents](https://salesorder.wistia.com/medias/maqu6p03dy)
[Fix Foreign Prices and Costs on Items](https://salesorder.wistia.com/medias/18e6p16upe)
[Currency Adjustments](https://salesorder.wistia.com/medias/rpxx0bn5o8)
[Fix Foreign Prices](https://howto.salesorder.com/fix-foreign-prices/)
### Banking
[Bank Accounts](https://salesorder.wistia.com/medias/vfp5eg6ufr)
[Petty Cash Accounts](https://salesorder.wistia.com/medias/q6ntundpzl)
[Credit Card Accounts](https://salesorder.wistia.com/medias/lvtd14ozkx)
[One-off Payments and Enter Purchases](https://salesorder.wistia.com/medias/k4681gqf0s)
[Checks](https://salesorder.wistia.com/medias/mqmevtnjn9)
[Bank Reconciliation](https://salesorder.wistia.com/medias/fhqj6ulm56)
[Memorized Transactions](https://salesorder.wistia.com/medias/npnjcds1vh)
[Create a Bank Account](https://howto.salesorder.com/create-bank-account/)
[Enter Purchases and one-off payments](https://howto.salesorder.com/enter-purchases-and-one-off-payments/)
[Memorize Transactions](https://howto.salesorder.com/memorize-transactions/)
[Create Bank Account](https://app.storylane.io/share/g74fkl0jgzsc)
### Sales (Accounts Receivable)
[Credit Control](https://salesorder.wistia.com/medias/dz3ew8d7yw)
[Sales Invoice](https://salesorder.wistia.com/medias/c6lsxejqzf)
[Customer Payments](https://salesorder.wistia.com/medias/j4j9if7tus)
[Cash Sale](https://salesorder.wistia.com/medias/a4t5o0u4bb)
[Customer Statements](https://salesorder.wistia.com/medias/25tf5s1cp5)
[Customer Credit Notes](https://salesorder.wistia.com/medias/20e55lvzn1)
[Customer Refunds](https://salesorder.wistia.com/medias/beiap1l2n4)
[Payment Terms](https://salesorder.wistia.com/medias/eafvs85vdw)
[Customer Prepayments](https://salesorder.wistia.com/medias/mzj2gmhds1)
[Create Customer Payment from Sales Invoice](https://howto.salesorder.com/how-to-create-customer-payment-from-sales-invoice/)
### Purchasing (Accounts Payable)
[Purchase Invoices (Bills)](https://salesorder.wistia.com/medias/rpynkzhnnm)
[Item Receipts](https://salesorder.wistia.com/medias/ovv4r6qq5r)
[Supplier Payments](https://salesorder.wistia.com/medias/3dz3pd0tdp)
[Supplier Credit (Debit) Notes](https://salesorder.wistia.com/medias/zbm0mg114f)
[Supplier Cash Purchase](https://salesorder.wistia.com/medias/eqqhxo3pee)
[Supplier Refunds](https://salesorder.wistia.com/medias/0nnq834vd1)
[1099 Misc Tracking](https://salesorder.wistia.com/medias/hxj3h6rdg3)
[Supplier Deposits and Prepayments](https://salesorder.wistia.com/medias/ym7z2mclax)
### Accounting - need to know
The system has a comprehensive set of functions that can be configured to implement and manage accounting processes to a clear and accurate standard. These functions pivot on the general ledger, which is multicurrency, tax agnostic and has a full audit trail.
Key functions are:
* Multicurrency
* Chart of Accounts
* Nominal Codes
* Configurable GL Accounts
* COGS average cost method
* Tax tracking for output tax (e.g. Sales Tax) and input/output tax (e.g. VAT)
* Financial Reporting
* Configurable accounting on transactions
* Credit control on transactions
* Bank reconciliation
* Check printing
* Configurable period closure
* Always on audit trail
The system supports up to four Decimal places.
See Setup>Configuration>Accounts>Numerical Formats
### Chart of Accounts
The chart of accounts is an adaptable listing of all accounts used in the general ledger. The system uses the accounts in the chart to organize and aggregate posting transactions for reporting to GAAP standards.
Accounting>Chart of Accounts
### Add new account
Accounting>Chart of Accounts>+ (new account)
Setup>Import data>Accounts
You can specify a parent child relationship for accounts.
{% hint style="info" %}
To add a new account in the correct position in your existing Chart of Accounts structure turn on and use Nominal codes.
Assign the appropriate nominal code number to tell the system where you want the account to appear.
{% endhint %}
### Nominal Codes
Accounts can be assigned a nominal code (account number),. The accounts are usually numeric, but can also be alphabetic or alphanumeric.
To display nominal codes
Setup>Configuration>Accounts>Display nominal codes
Nominal codes can be imported or manually added.
{% hint style="info" %}
If you are inserting a new account, the Nominal code value will determine where the account is inserted in the Chart of Accounts order.
{% endhint %}
* Setup>Import data>Accounts
* Accounting>Chart of Accounts>+ (new account)>Nominal Code
### Configurable GL Accounts
Users can set account types (income, asset, etc) and configure control and sub-account (parent-child) relationships within the chart of accounts. Each account can be assigned a:
* Cash flow category (operating, finance, investment)
* 1099 category
* Classification - an arbitrary ‘class’ for building reports
* Currency - Balance sheet accounts only
Expense accounts can be selected to display on Expense claims and defined as reimbursable. See 'Expense Claims'
### New Account Fields
| | |
| ------------------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Account name | What you want to see in the Chart of Accounts table. |
| Nominal Code | The value in this filed will appear in tables and reports if the 'Use Nominal Codes' check box is enabled (see above).
If you are inserting a new account, thvalue will determine where the account is inserted in the Chart of Accounts order.
|
| Currency | Set on Balance Sheet accounts only. |
| Parent Account | The dropdown will display a list of parent options. |
| Opening Balance | Set this whenever you are ready. |
| Cash Flow Category | Operating, Finance, Investment? |
| 1099 Category | Box number & Type e.g. Box 1 - Rent etc. See '[1099](https://helpwith.salesorder.com/purchasing/suppliers#_d924e5te4n5q)'. |
| Account Class | An additional reporting control. See 'Classifications'. |
### Cost of Goods method
The system uses the Average Cost method. Costs are assigned to inventory Items based on the total cost of goods purchased or produced in a period divided by the total number of items purchased or produced. The average cost method is also known as the weighted-average method.
### Tax support
Tax functions are explained in '[Sales Tax](https://helpwith.salesorder.com/accounting/tax/sales-tax)' and 'Value Added Tax'.
Taxjar integration is supported. TaxJar is a tool to automate the recording, reporting and filing of Tax. See 'Taxjar'.
1099 categorization and reporting for Suppliers is supported.
### Financial reporting
Run the following reports
Reports>Standard Reports>Accounting
* Profit and Loss
* Balance Sheet
* Statement of Cash Flows
* Cashflow Forecast
* Trial Balance
* Account Entries
* Transaction Journal
* General Ledger
### Excel Export
All reports can be exported to Microsoft Excel.
{% hint style="info" %}
You can leverage the rich capabilities of Microsoft Power BI to significantly enhance your Financial reporting. See 'Power BI'.
{% endhint %}
### Configurable accounting on transactions
Users can configure Items (i.e. SKUs) to post to specific general ledger accounts when transactions (i.e. Sales Invoices) are posted.
Default accounts can be specified for:
* Tax Liability
* Inventory Asset
* Cost of Goods Sold
* Income
* Expense
* Sales Discount
* Markups
* Bank Charges
* Bank Interest
* Stock Adjustment
* Pending Item receipts
* Currency Gains and Losses
* Customer Payment discounts
* Supplier Payment discounts
Goto: Setup>Configuration>Accounts (Default Accounts)
### Discount calculations
There's a method that discounts the line item by the discount percentage entered into the Discount column in the respective row.
The discount is not posted to the General Ledger.
How the discount is applied is configurable:
Setup>Configuration>Accounting>Accounts>Discounts>Discount Calculation.
Choose and preset:
* Using Unit Price/Cost
* Using Total Pre-tax amount
Depending on the option selected in the Accounts configuration page, the discount is either applied to the Unit Price (i.e before the line total is calculated) or on the pre-tax amount (after the line total is calculated).
### Credit Controls
The system has four functions to support credit policies:
Payment terms: Users can set payment term parameters, specifically:
* Term name
* Due in a specified period
Goto: Accounting>Payment Terms>+ (new payment term)
Credit control automation: Users can set customer credit control parameters to automate credit checks specifically:
* Use Credit Limit (set on the Customer master, ‘Credit Limit’)
* Use Invoices past due
Goto: Sales>Customers>Configure>Credit Control
Users can specify rules to place customers on hold, specifically:
* Allow nothing (no new transactions)
* Allow pending Sales Orders
* Allow Cash Sales (sales receipts)
* Allow pending Sales Orders and Cash Sales (sales receipts)
Goto: Sales>Customers>Configure>Credit Control
Administrators can set permissions on user ‘Roles’ to override credit controls.
Goto: Setup>Roles>Permissions>Customers
Early payment discount: Users can set parameters to specify when discounts are applied specifically:
* Discount within n Days
* Discount %
Goto: Accounting>Payment Terms>+(new payment term)>Early payment discount
Aging debtors analysis: Users can review outstanding receivables.
Goto: Reports>Standard Reports>Customers>Sales Invoice Aging
### Credit Note for Unused Payment
You can configure the Accounting to automatically create a Credit Note for unused Payment, The default behavior is just to display the balance on reports.
Setup>Configuration>Accounts>General>Create credit note for unused payment
### Bank reconciliation
Users can select a Bank Account and perform reconciliations aligned with statement dates for financial periods.
Goto: Banking>’Bank Account’>Actions>Reconcile
### Check Printing
See [Checks](https://helpwith.salesorder.com/banking/checks).
### Configurable period closure
Periods can be closed in these configurations:
1. Disallow editing or new transactions prior to the close date
2. Allow journals to be posted prior to the close date and up to a specified date in the future
Goto: Setup>Configuration>Accounts>Actions>Close Accounts
Users can set a ‘Close date’ so as the system records the date upon which the accounts were last closed.
| Account Closure | Notes |
| ------------------ | --------------------------------- |
| Closed by | User |
| Date | The date this close was committed |
| Close Date | Closed up to |
| Open Until | Open up to |
| Allow Journals | |
| Comments | Note to self :-) |
| Close the Accounts | Action to commit this transaction |
To review the Accounts closure history, go to:
Setup>Configuration>Accounts>Find>Accounts Closure History