UCI Study

Accounting Notes For Students

Course Name            –       C-PAC (Computerize-Professional Accounting Course)

Course Duration              –        1 Year’s and 6 months’ 

Course Semesters           –        These are three Semesters-

First Semester        –           Computer Basic, Word-Processing, Spreadsheet, Internet

Second Semester –           Manual Accounting

Third Semester      –           Computerize Accounting

Whose and why are needed this Course?

This course is preferred for maximum people their business management. It courses dynamically adapts to the way you operate your business and helps you simplify your business operations.

This course provides you with exceptional capabilities that will simplify the way you manage all critical aspects of your business, including accounting, sales and purchase, inventory, manufacturing, taxation, payroll, MIS reporting, and much more.

Feature the study material in the course-

Accounts

Book-keeping, Bill-wise details, Cost Centre tracking, Payables and receivables, Bank Reconciliation, Balance Sheet and P&L

Taxation

India – GST, TDS/TCS, CST etc.

Banking

e-Payments, e-Payments Report, Cost Centre, Reconciliation, Cheque management, Payment advice

Sales Management

Sales order, Stock groups, Stock query, Profit and loss, Price, Discounts, and Credit notes, Sales register

Purchase Management

Purchase order, Item details, Cost, Expense and debit notes, Purchase register

Payroll Management         

Salary and payslip, Employee profile management, Payroll reports, PF/ESI calculations, Batch payments, Payment disbursal advice

Manufacturing and Job work

Raw materials, Finished goods, WIP products, Multi-Bill of Material, Warehouse, Godown, Manufacturing journal 

Inventory

Batch processing, Units of measure, Inventory classification, Bill of materials Internet E-mails and knowledge base, Licence and user management, Jobs and recruitments, SMS notification and Natural Language support

Data Exchange

Data synchronization, Multiple format for reports, XML compatibility, Tally ODBC

Data Security

Secure connectivity, Secure transmission, Secure storage, Secure application access, Vault

Miscellaneous

          Multi-Currency support, Data Migration, Logo printing, Splitting and merging of company, Auto-                   voucher numbering

 It is necessary to understand some basic accounting terms which are daily in business world. These terms are called accounting terminology.

Ø  Transaction- “An event the recognition of which gives rise to an entry in accounting records. It is an event which results in change in the balance sheet equation. That is, which changes the value of assets and equity. In a simple statement, transaction means the exchange of money or moneys worth from one account to another account Events like purchase and sale of goods, receipt and payment of cash for services or on personal accounts, loss or profit in dealings etc., are the transactions”. Cash transaction is one where cash receipt or payment is involved in the exchange.

Ø  Debtor- A person who owes money to the firm mostly on account of credit sales of goods is called a debtor. For example, when goods are sold to a person on credit that person pays the price in future, he is called a debtor because he owes the amount to the firm.

Ø  Creditor- A person to whom money is owing by the firm is called creditor. For example, Madan is a creditor

of the firm when goods are purchased on credit from him

Ø  Capital- It means the amount (in terms of money or assets having money value) which the proprietor has invested in the firm or can claim from the firm. It is also known as owner’s equity or net worth. Owner’s equity means owner’s claim against the assets. It will always be equal to assets less liabilities, say: Capital = Assets – Liabilities.

Ø  Liability- It means the amount which the firm owes to outsiders that is, excepting the proprietors. In the words of Finny and Miller, “Liabilities are debts; they are amounts owed to creditors; thus the claims of those who ate not owners are called liabilities”. In simple terms, debts repayable to outsiders by the business are known as liabilities.

Ø  Asset- Any physical thing or right owned that has a money value is an asset. In other words, an asset is that expenditure which results in acquiring of some property or benefits of a lasting nature.

Ø  Goods- It is a general term used for the articles in which the business deals; that is, only those articles which are bought for resale for profit are known as Goods.

Ø  Revenu- It means the amount which, as a result of operations, is added to the capital. It is defined as the inflow of assets which result in an increase in the owner’s equity. It includes all incomes like sales receipts, interest, commission, brokerage etc., However, receipts of capital nature like additional capital, sale of assets etc., are not a pant of revenue.

Ø  Expense- The terms ‘expense’ refers to the amount incurred in the process of earning revenue. If the benefit of an expenditure is limited to one year, it is treated as an expense (also know is as revenue expenditure) such as payment of salaries and rent.

Ø  Expenditure- Expenditure takes place when an asset or service is acquired. The purchase of goods is expenditure, where as cost of goods sold is an expense. Similarly, if an asset is acquired during the year, it is expenditure, if it is consumed during the same  year, it is also an expense of the year.

Ø  Purchases- Buying of goods by the trader for selling them to his customers is known as purchases. As the trade is buying and selling of commodities purchase is the main function of a trade. Here, the trader gets possession of the goods which are not for own use but for resale. Purchases can be of two types. viz, cash purchases and credit purchases. If cash is paid immediately for the purchase, it is cash purchases, If the payment is postponed, it is credit purchases.

Ø  Sales- When the goods purchased are sold out, it is known as sales. Here, the possession and the ownership right over the goods are transferred to the buyer. It is known as. ‘Business Turnover’ or sales proceeds. It can be of two types, viz.,, cash sales and credit sales. If the sale is for immediate cash payment, it is cash sales. If payment for sales is postponed, it is credit sales.

Ø  Stock- The goods purchased are for selling, if the goods are not sold out fully, a part of the total goods purchased is kept with the trader unlit it is sold out, it is said to be a stock. If there is stock at the end of the accounting year, it is said

to be a closing stock. This closing stock at the year end will be the opening stock for the subsequent year.

Ø  Drawings- It is the amount of money or the value of goods which the proprietor takes for his domestic or personal use. It is usually subtracted from capital.

Ø  Losses- Loss really means something against which the firm receives no benefit. It represents money given up without any return. It may be noted that expense leads to revenue but losses do not. (e.g.) loss due to fire, theft and damages payable to others,

Ø  Account- It is a statement of the various dealings which occur between a customer and the firm. It can also be expressed as a clear and concise record of the transaction relating to a person or a firm or a property (or assets) or a liability or an expense or an income.

Ø  Invoice- While making a sale, the seller prepares a statement giving the particulars such as the quantity, price per unit, the total amount payable, any deductions made and shows the net amount payable by the buyer. Such a statement is called an invoice.

Ø  Voucher- A voucher is a written document in support of a transaction. It is a proof that a particular transaction has taken place for the value stated in the voucher. Voucher is necessary to audit the accounts.

Ø  Proprietor- The person who makes the investment and bears all the risks connected with the business is known as proprietor.

Ø  Discount- When customers are allowed any type of deduction in the prices of goods by the businessman that is called discount. When some discount is allowed in prices of goods on the basis of sales of the items, that is termed as trade discount, but when debtors are allowed some discount in prices of the goods for quick payment, that is termed as cash discount.

Ø  Solvent- A person who has assets with realizable values which exceeds his liabilities is insolvent. 

Ø  Insolvent- A person whose liabilities are more than the realizable values of his assets is called an

insolvent.

Accounting Equation

As indicated
earlier, every business transaction has two aspects. One aspect is debited other aspect is credited. Both the aspects have to be recorded in accounts appropriately. American Accountants have derived the rules of debit and credit
through a ‘novel’ medium, i.e., accounting equation. The equation is as follows: Assets = Equities

The equation is based on the principle that accounting deals with property and rights to property and the sum of the properties owned is equal to the sum of the rights to the properties. The properties owned by a business are called assets and the rights to properties are known as liabilities or equities of the business. Equities can be subdivided into equity of the owners which is known as capital and equity of creditors who represent the debts of the business know as liabilities. These equities may also be called internal equity and external equity. Internal equity represents the owner’s equity in the assets and external represents he outsider’s interest in the asset. Based on the bifurcation of equity, the accounting equation can be restated as follows:

Assets = Liabilities + Capital            (Or)     Capital = Assets – Liabilities            (Or)     Liabilities = Assets – Capital.

The equation is fundamental in the sense that it gives a foundation to the double entry book-keeping system. This equation holds good for all transaction and events and at all periods of time since every transaction and events has two aspects.

Part-2

JOURNAL

Introduction

When the business transactions take place, the first step is to record the same in the books of original entry or subsidiary books or books of prime or journal. Thus journal is a simple book of accounts in which all the business transactions are
originally recorded in chronological order and from which they are posted to the ledger accounts at any convenient time. Journalsing refers to the act of recording each transaction in the journal and the form in which it is recorded,
is known as a journal entry.

Advantages Of Journal

The following are
the inherent advantages of using journal, though the transactions can also be directly recorded in the respective ledger accounts;

1.    As all the transactions are entered in the journal chronologically, a date wise record can easily be maintained;

2.    All the necessary information and the required explanations regarding all transactions can be obtained from the journal; and

3.    Errors can be easily located and prevented by the use of journal or book of prime entry. The specimen journal is as follows:

Date   Particulars                 L.F.             Debit              Credit

Rs.                   Rs.

1          2                                  3                4                    5

The journal has five columns, viz. (1) Date; (2) Particulars; (3) Ledger Folio; (4) Amount (Debit); and (5) Amount (Credit) and a brief explanation of the transaction by way of narration is given after passing the journal entry.

Date: In each page of the journal at the top of the date column, the year is written and in the next line, month and date of the first entry are written. The year and month need not be repeated until a new page is begun or the month or the year changes. Thus, in this column, the date on which the transaction takes place is alone written.

Particulars: In this column, the details regarding account titles and description are recorded. The name of the account to be debited is entered first at the extreme left of the particulars column next to the date and the abbreviation ‘Dr.’ is written at the right extreme of the same column in the same line. The name of the account to be credited is entered in the next line preceded by the word “To” leaving a few spaces away from the extreme left of the particulars column. In the next line immediately to the account credited, a short about the transaction is given which is known as “Narration”. “Narration” may include particulars required to identify and
understand the transaction and should be adequate enough to explain the transaction. It usually starts with the word “Being” which means what it is and is written within parentheses. The use of the word “Being” is completely
dispense with, in modern parlance. To indicate the completion of the entry for
a transaction, a line is usually drawn all through the particulars column.

Ledger Folio: This column is meant to record the reference of the main book, i.e., ledger and is not filled in when the transactions are recorded in the journal. The page number of the ledger in which the accounts are appearing is indicated in this column, while the debits and credits are posted o the ledger accounts.

Amount (Debit): The amount to be debited along with its unit of measurement at the top of this column on each page is written against the account debited.

Amount (Credit): The amount to be credited along with its unit of measurement at the top of this column on each page is written against the account credited.

Sub-Division Of Journal

When innumerable
number of transactions takes place, the journal, as the sole book of the original entry becomes inadequate. Thus, the number and the number and type of journals required are determined by the nature of operations and the volume of
transactions in a particular business. There are many types of journals and the following are the important ones: 

1.    Sales Day Book- to record all credit sales.

2.    Purchases Day Book- to record all credit purchases.

3.    Cash Book- to record all cash transactions of receipts as well as payments.

4.    Sales Returns Day Book- to record the return of goods sold to customers on credit.

5.    Purchases Returns Day Book- to record the return of goods purchased from suppliers on credit.

6.    Bills Receivable Book- to record the details of all the bills received.

7.    Bills Payable Book- to record the details of all the bills accepted.

8.    Journal Proper-to record all residual transactions which do not find place in any of the aforementioned books of original entry.

Part-3

Ledger

Ledger is a main book of account in which various accounts of personal, real and nominal nature, are opened and maintained. In journal, as all the business transactions are recorded chronologically, it is very difficult to obtain all the transactions pertaining to one head of account together at one place. But, the preparation of different ledger accounts helps to get a consolidated picture of the transactions pertaining to one ledger account at a time. Thus, a ledger account may be defined as a summary statement of all the transactions relating to a person, asset, expense, or income or gain or loss which have taken place during a specified period and shows their net effect ultimately. From the above definition, it is clear that when transactions take place, they are first entered in the journal and subsequently posted to the concerned accounts in the ledger. Posting refers to the process of entering in the ledger the information
given in the journal. In the past, the ledgers were kept in bound books. But with the passage of time, they became  loose-leaf ones and the advantages of the same lie in the removal of completed accounts, insertion of new accounts and arrangement of accounts in any required manner.

Sub-Division Of Ledger

In a big business, the number of accounts is numerous and it is found necessary to maintain a separate ledger for customers, suppliers and for others. Usually, the following three types of ledgers are maintained in such big business
concerns.

1.    Debtors’ Ledger: It contains accounts of all customers to whom goods have been sold on credit. From the Sales Day Book, Sales Returns Book and Cash Book, the entries are made in this ledger. This ledger is also known as sales ledger.

2.    Creditors’ Ledger: It contains accounts of all suppliers from whom goods have been bought on credit. From the Purchases Day Book, Purchases Returns Book and Cash Book, the entries are made in this ledger. This ledger is also known as Purchase Ledger.

3.    General Ledger: It contains all the residual accounts of real and nominal nature. It is also known as Nominal Ledger.

Distinction between journal and ledger

1.    Journal is a book of prime entry, whereas ledger is a book of final entry.

2.    Transactions are recorded daily in the journal, whereas posting in the ledger is made periodically.

3.    In the journal, information about a particular account is not found at one place, whereas in the ledger information about a particular account is found at one place only.

4.    Recording of transactions in the journal is called journalising and recording of transactions in the ledger is called posting.

5.    A journal entry shows both the aspects debit as well as credit but each entry in the ledger shows only one aspect.

6.    Narration is written after each entry in the journal but no narration is given in the ledger.

7.    Vouchers, receipts, debit notes, credit notes etc., from the basic documents form journal entry, whereas journal constitutes basic record for ledger entries.

Subsidiary Books Introduction

Journal is subdivided into various parts known as subsidiary books or sub-divisions of journal. Each one of the subsidiary books is a special journal and a book of original or prime entry. There are no journal entries when records are made in these books. Recording the transactions in a special journal and then in the ledger accounts is the practical system of accounting which is also referred to as English System. Though the usual type of journal entries are not passed in these sub-divided journals, the double entry principles of accounting are strictly followed.

Kinds Of Subsidiary Books

There are different types of subsidiary books which are commonly used in any

1.    Purchases Book- This book is used to record all credit purchases made by the business concern from its suppliers. This book is also known as ‘Purchases Books’, ‘Purchases Journal’ or ‘Invoice Book’. It contains five columns, viz., Date, Particulars, Ledger Folio, Inward Invoice Number and Amount. Whenever any credit purchase is made, the date on

which the transaction has taken place is entered in the ‘Date Column’, the name of the party from whom the purchase has been made the particulars column, the inward invoice number with which the purchase has been made in the ‘inward Invoice Number Column’ and the money value of the purchase in the ‘Amount Column’. The ‘L.F. Column’ is to record the ledger folio number while posting is made. Posting: The total of purchases book for a specified period is debited to the purchases account in the Ledger. The personal accounts are posted by crediting the individual accounts.

2.    Sales books- This book is used to record all credit sales effected by the business to its customers. This book is also called as ‘Sales Book’, ‘sales Journal’ or ‘Sold Book’. It contains five columns, viz., Date, Particulars, L.F., Outward Invoice Number and Amount. When any credit sales is effected, the date is entered in the ‘Date Column’, the name of the party to whom the sale is made in the ‘Particulars Column’, the invoice number with which the sales have been effected in the ‘Out-ward Invoice Number Column’ and the money value of the sales in the ‘Amount Column’, The LF

column is entered while posting is effected. Posting: The total of the Sales Book for a specified period is credited to the Sales Account in the Ledger. The personal account is posted by debiting the individual

accounts.

3.    Purchases Returns Books- This book is used to record all transactions relating to the goods returned to suppliers. This book is also known as ‘Purchases Returns journal’ or ‘Returns Outward Book’, the specimen ruling of a Purchases Returns Book is given below:

4.    Sales Returns Books- This book is used to record all transactions relating to goods returned by customers. This book is also known as ‘Sales Return Journal’ or ‘Returns Inwards Book’, the specimen ruling of sales returns book is given below:

5.    Bills Receivable Book: This book is used to record all the bills received by the business from its customers. It contains details regarding the name of the acceptor, date of the bill, place of payment, term of the bill, due date and the amount of the bill. The specimen ruing of a Bills Receivable Book is given below:

6.    Bills Receivable Book- While posting, the individual customers’ accounts will be credited and the total of the Bills

Receivable Book for a specified period will be debited to the Bills Receivable Account in the Ledger.

7.    Bills Payable Book: This book is used to record all the bills accepted by the business drawn by its creditors. It contains details regarding the name of the drawer, payee and date of acceptance, due date, place of payment, term and amount of the bill.

8.    Journal Proper- This book is used to record all the residual transactions which cannot find place in any of the subsidiary

books. While recording, the entries are made in the journal covering both the aspects of the transaction. The following are some of the examples of transactions which are entered in this book.

1.    Opening entries and closing entries.

2.    Adjusting entries

3.    Transfer entries from one account to another account.

4.    Rectification entries.

5.    Bills of Exchange Entries

6.    Credit Purchase/sale of an asset other than goods.

Cash Book- Cash Book is a sub-division of Journal recording transactions pertaining to cash receipts and payments. Firstly, all cash transactions are recorded in the Cash Book wherefrom they are posted subsequently to the respective ledger accounts. The Cash Book is maintained in the form of a ledger with the required explanation called as narration and hence, it plays a dual role of a journal as well as ledger. All cash receipts are recorded on the debit side and all cash payments are recorded on the credit side. All cash transactions are recorded chronologically in the Cash Book. The Cash Book will always show a debit balance since payments cannot exceed the receipts at any time.

Kinds of Cash Book: From the above it can be observed that the Cash Book serves as a subsidiary books as well as ledger. Depending upon the nature of business and the type of cash transactions, various types of Cash books are used. They are:

1.    Single Column Cash Book

2.    Two Column Cash Book or Cash Book with cash and discount columns.

3.    Three Columnar Cash Book or Cash Book with cash, bank and discount columns.

4.    ‘Bank’ Cash Book or Cash Book with bank and discount columns.

5.    Petty Cash Book.

Basic Document For Subsidiary Books

Inward Invoice:- This is the document sent by the suppliers of goods giving details of goods sent, price, value, discount etc. It is the basis for entries in purchases book.

Outward Invoice: This is a document sent by the firm to the customers, showing the details of goods supplied, their price and value, discounts etc., it is the basis for writing sales book.

Debit Note:- It is a simple statement sent by a person to another person showing the amount debited to the

account of the latter along with a brief explanation. The debit notes are issued by a trader relating to purchase returns in order to put up his claim for abatement of his dues to the other party. Debit notes are serially numbered and are similar to invoices although they are usually printed in red ink.

Credit Note:- It is nothing but a statement sent by one person to another person showing the amount credited to

the account of the latter along with a brief explanation. The credit notes are used for sales return in order to intimate related abatement and are similar to invoice although they are usually printed in red ink.

Cash Receipts and Vouchers:- These are the vouchers and receipts for cash received and paid. Entries in cash book are made on the strength of the vouchers and receipts. They are also useful for auditing purpose.

Contra Entries- For any single transaction the same account cannot be debited and credited. But since cash and bank accounts are maintained in the cash book, the debit and credit may be found in the two different accounts in the Cash Book. They are transactions which affect both the sides of the Cash Book. For instance, when cash is deposited into the bank, bank account should be debited and cash account should be credited. Hence, on the debit side of the Cash Book. ‘To Cash’ is written in the particulars column and the amount is entered in the bank column. Similarly, on the credit side of the Cash Book, ‘By Bank’ is written in the particulars

column and the amount is entered in the cash column. When cash is withdrawn from the bank, on the debit side of the Cash Book, ‘To Bank’ is written in the particulars column and the amount is written in the cash column.

Likewise, on the credit side of the Cash Book, ‘By Cash’ is written in the particulars column and amount is entered in the bank column. Therefore, those entries which appear on both the sides of the Cash Book are called Contra Entries and they are identified and denoted in the Cash Book itself by writing the letter ‘C’ in the Ledger Folio Columns on either side. For double entry procedure is completed in the cash book itself, no further positing is made in the ledger. In a three columnar Cash Book, cash and bank columns are balanced as any other ledger account and discount columns are imply totaled. To know the balance of the discount columns, a separate account, viz., discount account is opened in the ledger. While the cash column will always show a debit balance, the bank column may show a credit balance at times. The credit balance in the bank column represents nothing but bank overdraft.

Discounts

Trade discount- When a customer buys goods regularly or buys large quantity or buys for a large amount, the seller is usually inclined to allow a concession in price. He will calculate the total price according to the list of catalogue. But after the total is arrived at, he will make a deduction 5% or 10% depending upon his business policy. This deduction is known as Trade discount.

Cash Discount- An amount which is allowed for the prompt settlement of debt arising out of a sale within a specified time and calculated on a percentage basis is known as cash discount, i.e., it is always associated with actual payment. Difference Between Trade Discount and Cash Discount

Trade discount

Ø It is given by the manufacturer or the wholesaler to a retailer and not to others.

Ø It is allowed on a certain quantity being purchased.

Ø It is a reduction in the catalogue price of an article.

Ø It is not usually accounted for in the books since the net amount (i.e. after deducting discount) is shown.

Ø It is allowed only when there is a sale either cash or credit.

Ø  It is allowed on payment being made before a certain date.

Ø  It is a reduction in the amount due by a debtor.

Ø  This discount must have to be accounted for in the books since it is deducted from the gross selling price.

Ø It is allowed only when there is cash receipt or cash payment including cheques.

Ø It varies from customer to customer depending on the time and period of payment.

Ø  It is allowed only on condition. The dues should be paid within the stipulated time. If not, the debtor is not eligible for cash discount.

Cash discount

Ø It may be allowed by seller to any debtor.

Ø  It is allowed or not allowed according to sales policy followed by a business concern.

Part-4

TRIAL BALANCE

Introduction

According to the dual aspect concept, the total of debit balance must be equal to the credit balance. It is a must that the correctness of posting to the ledger accounts and their balances be verified. This is done by preparing a trail balance.

Meaning

Trial balance is a statement prepared with the balances or total of debits and credits of all the accounts in the ledger to test the arithmetical accuracy of the ledger accounts. As the name indicates it is prepared to check the ledger balances. If the total of the debit and credit amount columns of the trail balance are equal, it is assumed
that the posting to the ledger in terms of debit and credit amounts is accurate. The agreement of a trail balance ensure arithmetical accuracy only, A concern can prepare trail balance at any time, but its preparation as on the
closing date of an accounting year is compulsory.

Objectives Of Preparing A Trail Balance

1.    It gives the balances of all the accounts of the ledger. The balance of any account can be found from a
glance from the trail balance without going through the pages of the ledger.

2.    It is a check on the accuracy of posting. If the trail balance agrees, it proves:

i.             That both the aspects of each transaction are recorded and

ii.            That the books are arithmetically accurate.

3.    It facilitates the preparation of profit and loss account and the balance sheet. 

4.    Important conclusions can be derived by comparing the balances of two or more than two years with the help of trail balances of those years.

Features Of Trail Balances

The following are the important features of a trail balances:

1.    A trail balance is prepared as on a specified date.

2.    It contains a list of all ledger account including cash account.

3.    It may be prepared with the
balances or totals of Ledger accounts.

4.    Total of the debit and credit
amount columns of the trail balance must tally.

5.    It the debit and credit amounts
are equal, we assume that ledger accounts are arithmetically accurate.

6.    Difference in the debit and
credit columns points out that some mistakes have been committed.

7.    Tallying of trail balance is
not a conclusive profit of accuracy of accounts.

Methods
Of Preparing Trail Balance

A trail balance refers to a
list of the ledger balances as on a particular date. It can be prepared in the
following manner:

1.    Total Method

According to this method, debit
total and credit total of each account of ledger are recorded in the trail
balance.

2.    Balance Method

According to this method, only
balance of each account of ledger is recorded in trail balance. Some accounts
may have debit balance and the other may have credit balance. All these debit
and credit balances are recorded in it. This method is widely used.

Part-5

Manufacturing Account

Introduction

‘Final Statements’ generally
refer to two statement prepared by a business concern at the end of every
accounting year. They are (I) Income statement and (2) Balance sheet. In case
of trading concerns these statements are prepared under the headings ‘Trading
and profit and loss account’ and ‘Balance sheet.’ In case of manufacturing
concerns these statements are titled ‘Manufacturing, Trading, and Profit and
Loss Account’ and ‘Balance Sheet.’ In case of Limited companies they are called
‘Profit and Loss Account’, ‘Profit and Loss appropriation account’ and ‘Balance
sheet’.

Meaning
Of Manufacturing Account

Manufacturing concerns which
convert raw material into finished product is required to prepare manufacturing
account and then prepare trading and profit and loss account. This is necessary
because they have to ascertain cost of goods manufactured, gross profit and net
profit.

Purpose Of
Manufacturing Account

The main purpose of
manufacturing account is to show:

1.    Cost of goods manufactured; and

2.    Major items of costs such as
raw material consumed, productive wages, direct and indirect expenses of
production.

Various
Items Shown In Manufacturing Account

Debit side
items

A.   Raw material
consumed- Manufacturing
account starts with value of raw materials consumed, i.e., opening stock of raw
materials plus Purchases and incidental expenses of purchase less closing stock
of raw materials.

B.    Direct wages
and expenses- Direct
wages and direct expenses are debited to manufacturing account. These are the
wages and expenses directly identifiable with the output produced.

C.   Indirect
factory expenses- Expenses
like factory rent, salaries, lighting, power, heat and fuel, machinery repairs,
depreciation and other factory expenses are debited to manufacturing account.
Total of Raw materials consumed, direct wages, direct expenses and factory
expenses is the total manufacturing cost.

D.   Opening work
in progress- Work-in-progress
is the semi finished output. Opening work-in-progress is shown on the debit
side of manufacturing account. The assumption is that it is completed into
finished output during the current accounting period.

E.    Sale of Scrap-
Scrap can
be raw material scrap or indirect material scrap. It may be reduced from
material cost on debit side. Alternatively it can be shown on credit side of
manufacturing account, like an income.

Credit side

a.    Closing work-in-progress- It represents the semi-finished
output at the end of the accounting period and is credited to manufacturing
account.

B.    Sale of scrap- If it is direct material scrap,
it can be reduced from raw material on debit side. However in the absence of
specific details, the amount from sale of scrap can be credited to
manufacturing account. In that case, whether it is direct material scrap or
indirect factory material scrap makes no difference.

C.   Cost of Finished goods
manufactured- This
is the balancing figure in the manufacturing account. It is transferred to
trading account.

Note: The closing work-in-progress
and sale of scrap may also be reduced on debit side and then credit side shows
the cost of goods manufactured alone. That approach makes the above account
look like a cost sheet prepared in cost A/c.

Specimen
Of Manufacturing Account Is Presented Below

Manufacturing
A/c for the year ended…….

Part-6

Trading Account

Introduction

Trading account is prepared for
an accounting period to find the trading results or gross margin of the
business i.e., the amount of gross profit the concern has made from buying and
selling during the accounting period. The difference between the sales and cost
of sales is gross profit. For the purpose of computing cost of sales, value of
opening stock of finished goods, purchases, direct expenses on purchasing and
manufacturing are added up and closing stock of finished goods is reduced. The
balance of this account shows gross profit or loss which is transferred to the
profit and loss account.

Preparation
Of Trading Account

Trading account is a ledger
account. It has to be prepared in conformity with double entry principles of
debit and credit.

Items shown in trading account:

Debit side

             
I.       
Opening stock: The stock at the beginning of
an accounting period is called opening stock. This is the closing stock as per
the last balance sheet. It includes stock of raw materials, work in progress,
(where manufacturing account is not separately prepared) and finished goods.
Trading account starts with opening stock on the debit side.

            
II.       
Purchases: The total value of goods purchased after
deducting purchase returns is debited to trading a/c. Purchases comprise of
cash purchases am credit purchases.

           
III.       
Direct expenses: Direct expenses are incurred
to make the goods sale able. They include wages, carriage and freight on
purchases, import duty, customs duty, clearing and forwarding charges
manufacturing expenses or factor. Expenses (where manufacturing account is not
separately prepared). All direct expenses are extracted from trial balance.

Items shown in trading account
:

Credit side:

             
I.       
Sales: It
includes both credit and cash sales. Sales returns are reduced from sales and
net sales are shown on the credit side of trading account. The sales and
returns are extracted from the trial balance.

            
II.       
Closing stock: Closing stock is the value of
goods remaining at the end of the accounting period. It includes closing stock
of raw materials, work progress (where manufacturing account is not separately
prepared) and finished stock. The opening stock is ascertained from trial
balance but closing stock is not a part of ledger. It is separately valued and
given as an adjustment. If it is given in trial balance, it is after adjustment
of opening and closing stocks in purchases. If closing stock is given in trial
balance it is shown only as current asset in balance sheet. If closing stock is
given outside trial balance, it is shown on credit side of trading account and
also as current asset in the balance sheet

Closing
Entries Relating To Trading Account

The Journal entries given below
are passed to transfer the relevant ledger account balances to trading account.

For opening stock, purchases
and direct expenses.

Trading A/c                                             Dr       

To Opening Stock A/c

To Purchases (Net) A/c

To Direct expenses A/c

[Being transfer of trading a/c debit side items]

For transfer of sales (after
reducing sales returns)

Sales (net) A/c                                       Dr  

To Trading A/c

[Being transfer of sales to
Trading A/c]

For transferring gross profit

Trading A/c                                             Dr

To Profit & Loss A/c

[Being transfer of gross profit
to P&L A/c]

For Gross Loss

Profit & Loss A/c                                     Dr

To Trading A/c

[Being transfer of gross loss
to P&L A/c]

Note: Closing stock is taken into
account by an adjustment journal entry along with other adjustments.

A SPECIMEN OF
TRADING ACCOUNT IS SHOWN BELOW Trading account for the year ended ……………

Part-7

Profit And Loss Account

Introductions

Profit and loss account is
prepared to ascertain the net profit of the business concern for an accounting
period

Preparation
Of Profit And Loss Account

Profit and loss account starts
with gross profit brought down from trading account on the credit side. (If
gross loss, on the debit side). All the indirect expenses are debited and all
the revenue incomes are credited to the profit and loss account and then net
profit or loss is calculated. If incomes or credit is more, than the expenses
or debit, the difference is net profit. On the other hand if the expenses or
debit side is more, the difference is net loss.

 Debit side:

Expenses shown on the debit
side of profit and loss account are classified into two categories

Operating expenses and
Non-operating expenses

Transactions

Computerize Professional Accounting

Introduction to Voucher Entry

A voucher is a document that contains details of a
financial transaction and is required for recording the same into the books of accounts. For every transaction, you can use the appropriate Program voucher to
enter the details into the ledgers and update the financial position of the company.

The voucher entry menus options are available under Transactions in the Gateway. The Payroll and Order Vouchers are available as separate options which can be enabled based on the requirements.

Part-1

Accounting Vouchers

1.Contra Entry

2.Payment Entry

3.Receipt Entry

4.Purchase Entry

5.Sales Entry

6.Printing Vouchers based on Due Date

7.Debit Note Entry

8.Credit Note Entry

9.Post-dated Cheque Entry

Predefined Vouchers

Comprises of the following predefined Vouchers, to suit different business requirements for recording various transactions. Program also allows you to create user-defined Vouchers (Voucher Types) as per your requirements.

1.  Contra Entry

As per the Accounting Principles, a Contra entry is a transaction involving transfer of cash between one Cash A/c to another or one Cash A/c to
another Bank A/c i.e., is a transaction indicating transfer of funds from:

· Cash account to Cash account

· Cash account to Bank account

· Bank account to Cash account

· Bank account to Bank account

2.  Payment Entry

Payment voucher is used to account all the payments made by the company by way of Cash/Bank. Payment voucher can be passed using Single Entry or Double Entry mode by configuring the setting Use Single Entry mode for Pymt/Rcpt/Contra in configuration.

3.  Receipt Entry

Any money received from debtors against sales Invoices or on Account and for all transactions where money is received are accounted or entered using the Receipt Voucher.

For example, if your company receives money from a customer for an earlier transaction say sales, and the same is passed through a Receipt
Voucher:

· Credit the customer account and debit the Cash account, if you receive cash or

· Debit the Bank account where you need to deposit the money, if you receive Cheques.

Note: If you want to set a default account for all your receipt vouchers, you can create a voucher type with the option Enable default accounting allocation? set to Yes, and record your payments. In this case, the payment vouchers appear in the single-entry mode.

Special Keys for Voucher Narration Field

· ALT+R: Recalls the Last narration saved for the first ledger in the voucher, irrespective of the voucher type.

· CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespective of the ledger.

Receipt Entry Using Bank

1.     In F12: Configure set the option Use Single Entry mode for Pymt/Rcpt/Contra to Yes. The Bank Allocations screen appears.

2.     In the Received From field, the party name as defined in the ledger master appears by default. This can be changed as the convenience of the user.

3.     Select Inter Bank Transfer as the Transaction Type.

4.     Specify the Inst.No, Bank, Branch and the Transfer Mode.

Other Transaction Types

1.     Go to F11: Features > Alter Banking Details

2.     Set the option Alter List of Transaction Types to Yes.

3.     The user can set the option to yes for any transaction type that he/she wish to enable. The bank allocation screen after selecting the various
transaction types appears.

4.  Purchase Entry

When a company buys goods on credit or cash, Purchase voucher is used to record all the Purchase transactions of the company.

· Go to Accounting Vouchers.

· Click on F9: Purchase on the Button Bar or press F9 

For example, if you are purchasing goods from Supplier A for a value of Rs. 10000/-

· Debit Purchase Account.

· Credit Party Account.

To pass a Purchase entry in the Invoice mode, you need to enable the option Enable Invoicing in F11: Features (F1: Accounting or F2: Inventory
Features).

Invoice mode is of two types, namely:

1.     An Account Invoice

2.     An Item Invoice

Account Invoice: You will be directly selecting/debiting the Ledger account in case you are passing an Account Invoice.  This is useful especially when a Service Bill is entered and does not include Inventory. Pass a purchase Invoice for Service availed from XYZ Couriers.

Item Invoice: You will be first selecting the Inventory and then allocating the same to the relevant Ledger account.  This is useful to record all the Inventory movements in books of account. Pass a Purchase Invoice against purchase of Item A – 100 Nos. @ Rs. 10/= per quantity from LMN & Company.

Configuring an Invoice

Before creating the Purchase Invoice, you can set your I nvoice Configurations from F12 configure:

· Go to Accounting Vouchers > F9: Purchases (As Invoice)

· Select F12 Configure.

· Set the options, as required.

Purchase Invoice Configuration 

1.     Accept Supplementary Details: Set this option to Yes to specify the Despatch Details.  If this option is set to No, Print Default Name and Address of Party will be enabled for configuring. Here it captures the default name and address present in the
ledger.

2.     Allow separate Buyer and Consignee names:  Customers who are into consignment business and would like to have the
Consignee details on the Invoice, have to set this option to Yes.

3.     Use Common Ledger A/c for Item Allocation:  If you would like to allocate all the Items to a single Purchase Ledger
in the Invoice, you need to set this option to Yes for faster data entry.

4.     Allow Expenses/Fixed Assets for Accounting Allocation: If you want to use Expense or Fixed Assets ledgers while recording a
Purchase entry, set this option to Yes.

5.     Use Defaults for Bill Allocations: Setting this option to Yes will allocate the Bill Numbers automatically as defined in
voucher type master in ascending order.

6.     Use Additional Description(s) for Item Name:  If you would like to specify any additional description for item during entry, this option has to be enabled.

7.     Use Additional Description(s) for Ledger Name:  If you would like to specify any additional description for ledger during entry, this option has to be enabled.

8.     Consolidate Stock Items with same rates: If you would like to consolidate the stock items having same rates in Invoice, set
this option to Yes.

9.     Show Compound Unit of Item based on Rate: By enabling this option, you will be allowed to show the compound unit of item based on the unit provided in the Rate Per column.

10.  Show Full Details of Compound Unit: Enabling this option will display full details of compound unit in the Quantity field.

11.  Confirm each Cheque before Print: When you set this option to Yes, a conformation screen will appear for every cheque used for the
transaction before it is printed.

12.  Use Defaults for Bank Allocation: Setting this option to Yes, the Bank Allocations will have default allocations in
which, the Transaction type is Cheque, Voucher date as Instrument Date. the Cheque Range and Cheque Number will be Blank if it is not defined.

13.  Use Auto Cheque Numbering: To fetch cheque numbers automatically to the Bank Allocation, set this option to Yes. The first
Cheque Range defined for the Bank ledger will be taken as default.

14.  Allow Selection of Cheque Ranges: Setting this option to Yes, allows you to select any cheque range defined for a bank.

15.  Show Remarks in Bank Allocation Details: A new field – Remarks, will appear in the Bank Allocation screen where you can enter
your remarks, when this option is set to Yes.

16.  Importer’s Options: This is useful for import transactions.

17.  Show turnover achieved with Customer:  This option will help to view the turnover details during entry.

18.  Allow modification of ALL fields during entry: Default order/delivery note entries appearing in the Invoice can be changed during Invoice entry. Set this option to Yes to permit modification of all fields.

19.  Warn on Negative Stock Balance: Program will display a warning message Negative Stock with quantity details. You can then check which item is  having negative stock balance.

20.  Honor Expiry Dates usage for Batches: You can restrict or allow the usage of Expired stocks for selection during entry by
configuring this option.

21.  Show batches with Zero Quantity: On setting this to Yes the batches with zero quantity will be available for selection during entry.

22.  Calculate Tax on current Sub-Total: This option should be enabled if the tax needs to be calculated after considering the additional
Expenses.

Special Keys on the Button Bar

When you are passing an Item Invoice in Invoice mode, the following options will be available in the Button Bar.

· Alt+I – Acct Invoice – You can toggle between Item Invoice and Account Invoice, by clicking on this option on the Button Bar or pressing
Alt+I or vice-versa.

· Ctrl+V – As Voucher – You can toggle between Invoice mode and Voucher mode, by clicking on this option on the Button Bar or
pressing Ctrl+V or vice-versa.

Special Keys for Voucher Narration Field

· ALT+R: Recalls the Last narration saved for the first ledger in the voucher, irrespective of the voucher type.

· CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespective of the ledger.

5.  Sales Entry

Sales Voucher is used to record the Sales transactions of the company. You can pass an entry using the Voucher mode or the Invoice mode where the calculations can be automated and the transactions can be fed into the system easily.

Recording a Sales Entry

When a company sells goods on credit or cash, Sales voucher is used to record all the Sales transactions of the company.

· Go to Accounting Vouchers

· Click on F8: Sales on the Button Bar or press F8. For example, if you are selling goods to Debtor A for a value of Rs. 10000/-

· Debit Customer’s Account.

· Credit Sales Account.

Recording a Sales Invoice

When a sales transaction is made, a document detailing the transaction (item name, tax, etc) has to be given to the buyer or debtor as proof of
purchase by him. This document is called invoice or bill or cash memo. Program provides the option of creating Invoices. You can also alter an invoice to change the party details.

Account Invoice

Sales account invoice is generally used by professionals such as doctors and consultants who require to issue an invoice for certain services provided such as consultancy charges, professional fees, etc. Trading and manufacturing organizations also use the Account Invoice for invoicing service charges.

On the Sales entry screen, click Acct Invoice, which is displayed on the Button Bar on the right-hand side of the screen to display the Sales Account
Invoice screen.

Pass a sales account invoice for Service provided to Debtor B: Account Invoice mode displays the list of ledger accounts, which can be invoiced as required. This is unlike Item Invoice where Program displays the list of stock items.

Item Invoice

Invoicing is generally used for sale of stock where the details of the items sold are listed. Selecting the Item Invoice allows you to select the stock items that need to be invoiced. Trading and manufacturing organizations commonly use this format.

On the Sales invoice screen, click the button Item Invoice, which is displayed on the Button Bar on the right side of the screen and the Sales Item
Invoice appears as shown below:  Pass a Sales Invoice against sale of Item A – 50 Nos. @ Rs. 15/= per quantity to Debtor C:

Item Invoice mode displays the list of stock items, which can be invoiced as required.

Enable or disable item allocation screen in item invoice

If the following inventory features are enabled for the company and used, the item allocation screen will appear in item invoice:

· Godown

· Batches

· Tracking

· Order details

You can disable the features listed above (from F11 > F2: Inventory Features) if you do not want to view the item allocation screen.

Alter Party details in invoice

· Open the invoice in alteration mode.

· Select the party ledger, and press Enter to view the Party Details screen.

· Press Alt+M and select the required party ledger.

Special Keys for Voucher Narration Field

· ALT+R: Recalls the Last narration saved for the first ledger in the voucher, irrespective of the voucher type.

· CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespective of the ledger.

Configuring an Invoice

Before creating the Invoice, you can set your Invoice Configurations from F12: configure.

· Go to Accounting Vouchers > F8: Sales or F9: Purchases (As Invoice).

· Click F12: Configure. ales Invoice Standard Configuration

The first screen of Sales Invoice Standard Configuration screen has the following options:

1.     Accept supplementary details: Set this option to Yes to specify the despatch details.  If this option is set to No, Print Default Name and Address of Party will be enabled for configuring.

2.     Allow separate buyer and consignee names: Enabling this option will allow entering Consignee details in the invoice.

3.     Use common ledger A/c for Item Allocation: Enabling this option allows faster data entry by allocating all the items to a single
sales ledger in the invoice.

4.     Use defaults for bill allocations: Enabling this option will allocate Bill Numbers automatically as defined in voucher type master in ascending order.

5.     User voucher no. as bill ref. no. for bill allocations:  When this option is set to Yes, the voucher number will be taken as the bill reference number during bill allocation.

6.     Use Additional Description(s) for item name: Enabling this option will allow specifying of any additional description for item during
voucher entry.

7.     Use Additional Description(s) for ledger name: Enabling this option will allow specifying of any additional description for ledger
during voucher entry.

8.     Calculate tax on current sub-total (else calculations are on inventory total only): If this option is enabled, tax will be calculated after considering additional income or expenses.

9.     Warn on Negative Stock Balance: If this option is enabled, when there is an insufficient stock during sales entry, a warning message of negative stock with quantity details will be displayed.

Sales Invoice Advanced Configuration

In Sales Invoice Standard Configuration, Press F12 to view Sales Invoice Standard Configuration.

1.     Allow income accounts in sales voucher: Enabling this option will allow selecting i income ledgers for accounting allocation and also as additional ledger.

2.     Consolidate stock items with same rates: Enabling this option will allow consolidating the stock items having same rates in
invoice.

3.     Show compound unit of items based on rate: Enabling this option will allow displaying the compound unit of item based on the unit
provided in the Rate Per column.

4.     Show full details of compound unit: Enabling this option will display full details of compound unit in the Quantity field. 

5.     Use pre-closure of order details: Enabling this option will allow pre-closure of orders partially or completely from Stock item Allocation screen.

6.     Use defaults for bank allocations: If this option is set to Yes, the Bank Allocations will have default allocations in which, the Transaction type is Cheque, voucher date as Instrument Dat e. the Cheque Range and Cheque Number will be blank.

7.     Show Remarks: When this option is set to Yes, a new field Remarks to enter remarks for the payment will appear in the Bank Allocation screen.

8.     Specify  export shipping details: Enabling this option will allow entering shipping information in the voucher.

9.     Specify marks and nos./container no.: Enabling this option will allow specifying container information for export sales items.

10.  Show turnover achieved with Customer: Enabling this option will display the turnover details during entry.

11.  Allow modification of ALL fields during entry: Enabling this option will allow modification of all fields in the sales invoice.

Printing a Sales Invoice

To print any Invoice/voucher, press ALT+P or click on the button Print. You can configure the voucher type to print automatically after saving the voucher for which, the option Print after saving Voucher must be set to Yes.

Voucher Entry Configuration- Allow Income Accounts in Sales Vouchers Generally, all the Sales made by the Company are recorded using Sales Voucher.  In certain cases, the user would like to record the Income ledgers also in the Sales Voucher, the same is possible by enabling the option Allow Income Accounts in Sales Vouchers in F12 configuration in voucher mode.

For Example, pass a sales entry towards Professional Income from Customer A.

1.     Debit Customer A Account.

2.     Credit Professional Income Account grouped under Indirect Income.

6.  Printing Vouchers based on Due Date

The facility to print due date or credit days is provided for payment, receipt and journal voucher types.

In the transactions recorded for purchase and sales, the due date/credit days for paying or receiving the amount will be provided in the bill-wise details screen displayed for the party ledger selected while invoicing.

While printing the payment, receipt and journal voucher, the due date specified in the corresponding purchase or sales transaction will get printed,
as per the references selected in the party ledgers. To print these details, the following options need to be enabled in the Voucher Printing Configuration screen of Payment, Receipt and Journal vouchers.

· Print Bill-wise Details: This is provided to print the type of reference that is chosen in the payment, receipt and journal voucher. The type of references that gets captured here are:

o Advance

o Agst Ref

o New Ref

o On Account

· Print Bill Due Dates also: This is provided to print the due date specified in the bill-wise details screen of the party ledger selected in purchase, sale or journal voucher. The type of references for which due date will be displayed are:

o Advance

o Agst Ref

o New Ref

· Print Due Date with Credit Days: This is provided to print credit days along with due date depending on the type of reference chosen while recording the voucher. The type of references for which credit days will be displayed are:

o Advance

o Agst Ref

o New Ref

The due date of payment and receipt voucher can be printed on recording the transaction in single entry and double entry modes. 

Printing Due Date

Let us consider an example of a printing due date of payment made against a purchase invoice. In the Bill-wise Details screen of Purchase invoice, enter the Due Date or Credit Days as shown:

In the payment voucher, click Alt+P: Print button followed by F12: Configure button to configure the options to display due date in the printed payment voucher.

The printed voucher with due date appears:

Printing Due Date and Credit Period

Let us consider an example of a printing due date and credit days of amount received as advance. In the Bill-wise Details screen of Sales invoice, the Due Date or Credit

Days is mentioned:

Receipt Voucher for the Advance amount

Record a receipt voucher for receipt of advance amount by providing the bill-wise details.

In the receipt voucher, click Alt+P: Print button followed by F12: Configure button to configure the options to display due date in the printed receipt voucher.

7.  Debit Note Entry

Debit Note is a document issued to a party stating that you are debiting their Account in your Books of Accounts for the stated reason or vise versa.  It is commonly used in case of Purchase Returns, Escalation/De-escalation in price, any other expenses incurred by you on behalf of the party etc.

Debit Note can be entered in voucher or Invoice mode. You need to enable the feature in F11:

Accounting or Inventory features.

· To use it in Voucher mode you need to enable the feature in F11:Accounting Features –  Use debit and credit notes.

· To make the entry in Invoice mode enable the option F11: Accounting Features –  Record debit notes in invoice mode.

· To go to Debit Note Entry Screen,

· Go to Accounting Vouchers.

· Click on Ctrl+F9: Debit Note on the Button Bar or press Ctrl+F9.

You can toggle between voucher and Invoice mode by clicking Ctrl+V. Pass an entry for the goods purchased returned to Supplier A:

Special Keys for Voucher Narration Field:

· ALT+R: Recalls the Last narration saved for the first ledger in the voucher, irrespective of the voucher type. 

· CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespective of the ledger.

8.  Credit Note Entry

Credit Note is a document issued to a party stating that you are crediting their Account in your Books of Accounts for the stated reason or vise
versa.  It is commonly used in case of Sales Returns, Escalation/De-escalation in price etc.

A Credit Note can be entered in voucher or Invoice mode.You need to enable the feature in F11:

Accounting or Inventory features.

· To use it in Voucher mode you need to enable the feature in F11: Accounting Features – Use debit and credit notes.

· To make the entry in Invoice mode enable the option F11: Accounting Features – Record credit notes in invoice mode.

· To go to Credit Note Entry Screen

1.     Go to Accounting Vouchers.

2.     Click on Ctrl+F8: Credit Note on the Button Bar or press Ctrl+F8. You can toggle between voucher and Invoice mode by clicking Ctrl+V.

Pass an entry for goods sold returned from Customer A:

Special Keys for Voucher Narration Field:

· ALT+R: Recalls the Last narration saved for the first ledger in the voucher, irrespective of the voucher type.

· CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespective of the ledger.

9.  Post-dated Cheque Entry

A post-dated cheque is one that the recipient can encash on a future date. Such cheques are not payable until the date written on the face of the cheque. In the accounting books of both the issuer and the recipient, the transaction will not be recorded until the date provided on the cheque.

Facilitates smooth management of post-dated cheques and the underlying transactions:

· You can mark an entry as post-dated and specify the date on which the cheque was received/issued.

· The transaction will automatically affect the accounting books on the date of the post-dates cheque.

· You can obtain a comprehensive summary of all transactions involving post-dated cheques, using the Post-dated Summary report.

· You can include post-dated transactions in other accounting reports such as Ledger Vouchers, Group Summary, utstanding’s reports, and so on.

Creating a Post-dated Voucher

1.     Go to Accounting Vouchers > Payment. 

2.     In the Voucher Creation screen, click T: Post-Dated. The voucher will be marked with the words Post-Dated.

3.     Click F2: Date and provide the date of the cheque.

4.     Select a bank account in the Account field.

5.     Under Particulars, select the ledger of the party to whom the post-dated cheque has been issued.

6.     Provide the Amount and Bill-wise Details for the payment.

7.     Press Enter. The Bank Allocations screen appears.

8.     Fill in the required details. A new field, PDC Issue Date, will be
available in the screen. This field is available for post-dated transactions only. Fill in the date on which the post-dated cheque was issued to the party

9.     Press Enter to save the bank details. The Voucher Creation screen appears. Provide Narration if required. The completed Voucher Creation screen appears.

10.  Press Y or Enter to accept.

viewing Current and Final Balances of a Party Ledger

Two F12: Configure options is available in the Voucher Creation/Alteration screen to consider post-dated transactions while ascertaining the balances of party ledgers:

· Show Bill Final balances: Enabling this option will display the amount that remains due, if any post allocation, in the Bill-wise Details screen.

· Show Ledger Final Balances: Enabling this option will display the party ledger’s balance after including the post-dated transactions for the party ledger, in the Voucher Creation / Alteration screen.

 

Part-2

Inventory Vouchers

1. Receipt note

2. Rejections In

3. Rejections Out

4. Material In

5. Material Out

6. Stock Journal

7. Physical Stock

Inventory Vouchers perform the function in the inventory system that accounting vouchers do in the accounting system. Inventory Vouchers are also meaning of entering transactions. Accounting vouchers will update only Accounts, but Inventory vouchers will update both Accounts and Inventory. Inventory vouchers record the receipt and issue of goods/stock (Movement of goods), the transfer of stock between locations and physical stock adjustments.

If you have not integrated accounts with inventory, inventory vouchers will not have any impact on the Balance Sheet stock figures. The stock balances will be maintained separately. Set the option Integrate accounts and inventory to Yes in F11: Features > F1: Accounting Features/F2: Inventory Features.

You can trace a transaction from the beginning i.e., goods transfer stage to the financial accounting stage irrespective of integration status.

For example, the purchase of stock can be tracked from the purchase voucher through the receipt note, through invoice from the supplier and also through eventual payment.

1.  Receipt note

A Receipt Note voucher is used to record receipt of goods/items at stores. For example, the Company receives new stock item from a Supplier. If a Purchase Order exists for that supply, selecting the PO reference in the Receipt Note will display its particulars. The details recorded in the Receipt Note are the PO reference, Ledger account, Supplier’s name and address, Name of stock item, Stock location, quantity, rate, amount and the transaction narration. Purchase includes Accounting and Inventory. The Receipt Note is similar to the Goods Receipt Note (GRN) type of entry. When the Receipt Note is passed it updates the inventory levels.

In Program when a Receipt Note is tagged to a Purchase entry the whole transaction is completed.

· If Receipt Note is accounted but the Purchase entry is not, it is treated as Goods Received but Bills are not received.

· If the Purchase entry is accounted and the Receipt Note is not, it is treated as Bills Received but Goods are not received.

· One Purchase entry can be tagged to many Receipt Notes. Similarly, one Receipt Note can be tagged to many Purchase bills. It is not necessary for all Receipt Notes to be tagged with Purchase entries and vice versa.

· When the stock received is a part of purchase and we wish to keep track of the purchase bill for accounting, a Tracking No. is assigned while accounting the Receipt Note. The Tracking No. is selected while accounting the Purchase bill/invoice. Similarly, we can assign a Tracking No in the Purchase voucher and select it while accounting the Receipt Note.

· A Receipt Note or Purchase Entry can be prepared first. It is not compulsory that a Receipt Note should be prepared before accounting the Purchase Entry or the Purchase entry should be accounted before preparing a Receipt Note.

To configure the receipt note

1.     Go to F11: Features > F2: Inventory.

2.     Set Use tracking numbers (enables delivery and receipt notes) to Yes.

3.     Press Ctrl+A to accept.

4.     Go to Inventory Vouchers

5.     Click F9: Rcpt Note. The receipt note appears.

6.     Click F12: Configure. The Voucher Configuration screen appears.

7.     Set Accept Supplementary details to Yes.

8.     P ress Ctrl+A to accept and return to the voucher screen.

To enter the Receipt Note voucher

1.     Select Party A/c Name from the List of Ledger Accounts.

2.     Select Order No(s) from the List of Orders, if a purchase order exists for that supplier.

3.     Enter the required information in the Party Details screen.

4.     Select the Order No(s). If the Order No(s) is selected, the item name, quantity, rate and amount will be displayed automatically.

5.     Press Enter. The Stock Item Allocations screen appears.

6.     Select existing Tracking No. or create a new tracking number.

Note: A
Receipt Note with Tracking No. marked as Not Applicable will be an inventory document, affecting only the inventory values. This will not affect the
accounts. A purchase voucher with Tracking No. marked as Not Applicable will update the accounts without increasing the stock. The Purchase Bills Pending list is generated as Bills recd. but Goods not recd.

The Receipt Note appear.

1.     Enter Narration, if required.

2.     Press Enter to save.

2.  Delivery Note

To configure the delivery note

1.     Go to F11: Features > F2: Inventory.

• Set Use tracking numbers (enables delivery and receipt notes) to Yes.

• Press Ctrl+A to accept.

2.     Go to Inventory Vouchers

3.     Click F8: Dely Note. The delivery note appears.

4.     Click F12: Configure. The Voucher Configuration screen appears.

5.     Set Accept Supplementary Details to Yes.

6.     Press Ctrl+A to accept and return to the voucher screen.

To enter the delivery note

1.     Select Party A/c Name from the List of Ledger Accounts.

2.     Select Order No(s) from the List of Orders, if a purchase order exists for that supplier. The Party Details screen appears.

3.     Enter the required information in the Party Details screen.

4.     Select the Order No(s). If the Order No(s) is selected, the item name, quantity, rate and amount are displayed automatically.

5.     Press Enter the Stock Item Allocations screen appears as shown below:

6.     Select existing Tracking No. or create a new tracking number.

7.     Enter Narration, if required.

8.     Press Enter to save.

3.  Rejections In

A Rejections In Voucher is used to record goods that are rejected and returned by the customer. To enter the Rejections In Voucher

1.     From F11: Inventory Features, Enable the option Use rejection inward and outward notes.

2.     Go to Inventory Vouchers.

3.     Press Ctrl+F6 or select the button F6: Rej. In from the Button Bar.

4.     For example, customer A returns Item A delivered by the company.

5.     Select the Party’s name from the List of Ledger Accounts, from whom the goods have being returned.

6.     Once Party’s name is selected under Ledger Account, this column will be automatically populated with address, if provided in the Ledger Master creation screen.

7.     Select the Item from the List of Stock Items. Press Enter button on the Item, it will display the Item Allocations screen.

8.     Under the List of Tracking Numbers, the details of Delivery note along with Tracking number will be displayed, select the same. Mention the quantities returned.

4.  Rejections Out

The Rejections Out Voucher records goods that are rejected and returned to a supplier.

To view Rejections Out Voucher

1.     From F11: Inventory Features, Enable the option Use rejection inward and outward notes.

2.     Go to Inventory Vouchers

3.     Press Alt+F6 or Select the button F6: Rej. Out from the Button Bar.

4.     For example, the company returns Item A received from Supplier A.

5.     Select the Party’s name from the List of Ledger Accounts, to whom you are returning the goods.

6.     Once Party’s name is selected under Ledger Account, this column will be filled up automatically with the address, if provided in the Ledger Master creation screen.

7.     Select the Item from the List of Stock Items. Press Enter on the Item, it will display the Item Allocations screen. 8.     Under the List of Tracking Numbers, the details of Receipt note along with Tracking number will be displayed, select the same and mention the quantity rejected.

5.  Material In

The Material
In Voucher is used to record the material transfer in. 

In case of Job Work – Material In voucher can be used by the Job Worker as well as Principal Manufacturer.

Principal Manufacturer: Can use this Voucher to record the receipt of Finished goods / Scrap/By-Product/Co-Product from the Job Worker. In this voucher Principal Manufacturer can record the consumption of components used (own consumption like- wax, screw etc.) by the Job Worker

Job Worker: Can use this voucher to account the receipt of Raw material from the Principal Manufacturer. This voucher

can also be used for any other purpose other than Job Work.

To pass the Material In voucher

· From F11: Inventory Features, Enable the option Use material in and out vouchers.

Note: This option will automatically be set to Yes in case Enable job order processing is enabled in F11: Inventory Features, as the Material In/Out is associated with Job Order Processing.

· Go to Inventory Vouchers.

· Press Ctrl+W or click on Ctrl+W: Material In. The Inventory Voucher Creation screen appears:

· Select the Supplier’s (Job Worker) / Customer’s (Principal Company) name from the List of Ledger Accounts. Use Alt+C to create a new account. The Party Details screen is displayed as shown below:

· Select the required Order No(s) / option from the List of Orders.

· Provide the other details as shown above and Save to return to Inventory Voucher Creation screen.

· Select the required destinaton Godown from the List of Godowns.

Note: Select the appropriate Godown based on the type of Job Order. In case the Job Worker is receiving the raw material from the Principal Manufacturer, the Destination Godown should be set to Not Applicable. In case the Principal Manufacturer is receiving the finished goods from the Job Worker, the Godown enabled with Our Stock with Third Party should be selected for Consumption Godown.

The Source Godown in Material In is displayed as Consumption Godown when the Principal Manufacturer receives the finished goods from the Job Worker using Godown enabled with Our Stock with Third Party and configured to Allow Consumption in Material In voucher type.

· Select the Stock Item which is received / issued, from the List of Stock Items. The Item Allocations sub-screen is displayed.

· In case the finished goods / scrap is received from a Job Worker, the Item Allocation for the selected item is displayed as follows:

· Set Consider as Primary Item to Yes, in case the selected item is the Primary Item for which the consumption has to take place.

The BoM created for the selected item in the List of BoM.

·  Select the required BoM.

· Set Consider as Scrap to Yes, in case the selected item is a Scrap Item.

Note: This option will skip when Consider as Primary Item is set to Yes. Select the

Godown, Quantity, Rate and Amount as shown:

The Godown selected in the Item Allocation should not be enabled with options Our Stock with Third Party and Third Party Stock with us in Godown masters.

· Press Enter to return to Inventory Voucher Creation screen.

· Press F12 configuration to enable/disable other options:

6.  Material Out

The Material Out Voucher is used to record the material transfer out. In case of Job Work – Material Out voucher can be used by the Job Worker as well as Principal Company.

· Principal Company: Can use this Voucher to transfer the Raw Materials to the Job Worker.

· Job Worker: Can use this voucher to transfer the Finished goods to the Principal Company.

This voucher can also be used for any other purpose other than Job Work. 

To pass the Material Out voucher

1.     Go to F11: Inventory Features, Enable the option Use material in and out vouchers

Note: This option will automatically be set to Yes in case Enable job order processing is enabled in F11: Inventory Features, as the Material In/Out is associated with Job Order Processing.

2.     Go to Inventory Vouchers.

3.     Press Ctrl+J or click on Ctrl+J: Material Out.

4.     Select the Supplier’s (Job Worker) / Customer’s (Principal Company) name from the List of Ledger Accounts. Use Alt+C to create a new account. The Party Details screen is displayed:

· Select the required Order No(s) / option from the List of Orders.

· Provide the other details as shown above and Save to return to Inventory Voucher Creation screen.

· Select the required destination Godown from the List of Godowns.

Note: Select the appropriate Godown based on the type of Job Order. In case the Job Worker is issuing the finished goods to the Principal Company, the Destination Godown should be set to Not Applicable.

In case the Principal Company is issuing raw materials to the Job Worker, the Godown enabled with Our Stock with Third Party in Godown masters should be selected.

· Select the Stock Item which is issued, from the List of Stock Items. The Item Allocations sub-screen is displayed.

· Select the Order No, Component of, Godown, Quantity, Rate and Amount: Note: The Component of will automatically display the Primary Item of the selected component.

· Press Enter to return to Inventory Voucher Creation screen.

· Press F12 configuration to enable/disable other options.

7.  Stock Journal

Stock journal is a journal in which all types of stock adjustments are entered. The stock adjustment may be due to the following reasons:

1.     Inter-Godown Transfer: This is useful to transfer the goods from one location to another. The quantity of stock remains the same, but the location changes.

2.     Additional Cost/Expenses involved in the Transfer of goods: You can also account the additional cost incurred in connection of transfer of materials from one location to another.

3.     Accounting for Wastage of stock or shortage of stock: There may be a shortage or wastage of stock items, the quantity may have got changes. In such cases, you have to enter a stock journal to account for the increase or decrease in the Stock Item.

Manufacturing Process

If you are involved in the manufacturing process in which raw materials are consumed and finished goods are produced, then you can create a manufacturing Journal Voucher also. To view the Stock Journal Voucher

1.     Go to Inventory Vouchers.

2.     Click F7: Stk Jrnl.

For example, the company transfers Item B from the warehouse to the shop. Note: To get the Godown details, enable the feature Maintain multiple Godowns in F11: Features > F2: Inventory Features.

Date  Enter the Date of Stock Journal entry.

Ref – Enter the reference number, if any, or leave it blank.

Note: To get the reference column in the Stock Journal, in F12: Configuration screen set Yes to Use Ref. Number in Stock Journal. Source (Consumption)

Name of Item- Select the name of the Item from the List of Items, which needs to be transferred under ource.

Godown- Select the Godown from the List of Godowns, from which goods are getting transferred.

Note: The Godown address can be printed in a stock journal voucher.

Quantity, Rate, and Amount

Enter the quantity of the items that is getting transferred and rate. The amount will pop up automatically.

Note: The rate that is captured here is obtained from the Godown summary. Destination (Production)

Name of Item- Select the name of the item from the List of Items under the column Destination.

Godown- Select the Godown from the List of Godowns, to which goods are being transferred.

Quantity, Rate and Amount

Enter the quantity of the items that is being transferred. The rate and amount will be displayed automatically. 

Note: You can have a different Rate for Source (Consumption) and for Destination (Production) column for the same Stock Item. When there are some Additional Cost/Expenses incurred, you can account the same in the Stock Journal. After mentioning the quantity, rate and amount under Destination (Production), the Additional Cost Details screen will be displayed. Enter the additional cost/expense incurred.

Note: To get the additional cost details in the Stock Journal voucher, enable Track additional costs of purchases in F11: Features: F2: Inventory Features. Narration – Enter the narration, if required.

Recording Manufacturing Journal Voucher

You can create a manufacturing journal and enter details of the components used to produce the finished goods, or the Co-Products/By- Products/Scrap produced during the manufacture of the finished goods, and so on. To create a manufacturing journal

1.     Go to Inventory Vouchers > F7: Stk Jrnl.

2.     Select the manufacturing journal.

3.     Select the product which needs to be manufactured in the Name of product field.

4.     Select the bill of material in the Name of BOM field. The components used to manufacture the finished goods appears automatically.

5.     Select the godown where the finished goods is stored in the Godown field.

6.     Enter the quantity of the product to be produced in the Q uantity field. The percentage of cost of allocation to the primary item manufactured is displayed in the % of Cost allocation field.

Note: Click for more information to create a manufacturing voucher type.

Click for more information to create BOM. In the manufacturing process if there are no Co-Products/By-Products/Scrap produced then the % of Cost allocation will be 100%. If there are any Co-Products/By-Products/Scrap produced then the % of Cost of allocation to primary item = Total cost – Cost allocated to co-product/by-product/scrap.

7. Enter the batch name, manufacturing date and expiry date in Batch Name, Mfg Date, Expiry fields, if the item to be manufactured in batches 

Components (Consumption)

The list of component used to produce the finished goods is selected here.

1.     Select the components used for the manufacture of finished goods in Name of Item field.

2.     Select the godown from where the components are consumed for production in the Godown field.

3.     Enter the quantity of the raw materials required to manufacture the finished goods in the Quantity field.

4.     Enter the rate (purchase cost) of the raw materials used in the manufacture of finished goods in the Rate field.

5.     The amount is calculated automatically based on Quantity and Rate of item and displayed in the Amount field.

Note: If bill of material is selected in the Name of BOM field, the components used for the manufacture of finished goods and the Co-Products/ By-Products /Scrap produced during manufacturing is displayed automatically.

Co-Products/By-Products/Scrap

1.     The list of Co-Products/By-Products/Scrap produced during the manufacture of finished goods is selected here.

2.     Select the Co-Products/By-Products/Scrap name which is produced in the process of manufacture of finished goods in the Name of Item field.

3.     Select the godown where the Co-Products/By-Products/Scrap is stored in the Godown field.

4.     Enter the percentage of cost allotted towards the Co-Products/By-Products/Scrap produced in the % of Cost Allocation field.

5.     Enter the quantity of Co-Products/By-Products/Scrap produced in the Quantity field.

6.     The rate of the Co-Products/By-Products/Scrap is displayed automatically in the Rate field. (Rate = Amount/Quantity).

7.     The amount is displayed automatically based on the % of Cost Allocation defined for the Co-Products/By-Products/Scrap produced in the Amount field. (Amount = Effective Cost x % of Cost Allocation).

8.     The total cost of the components (raw materials) used in the manufacture of finished goods is displayed in the Cost of Components field.

9.     Enter the additional cost incurred for manufacturing the finished goods, if any in the Type of Additional Cost field.

Note: The value of additional cost will be added to the stock item cost. It will not be posted to the ledger.

10.  The total of all additional cost is displayed in the Type of Additional Cost field.

11.  The total of Cost of components + Type of Additional Cost incurred to manufacture the finished goods and Co-Products/By-Products/Scrap is displayed in the Effective Cost field.

12.  The cost allocated to manufacture the primary item is displayed in Allocation to Primary Item field. (Allocation to Primary Item = Effective Cost – Total cost of co-products/by-products/scrap).

13.  The cost of the primary item manufactured (finished item) is displayed in Effective rate of primary item field. (Effective Rate of Primary Item = Allocation to Primary Item/quantity of the primary item).

14.  Enter Narration, if required.

15.  Press Enter to save.

Manufacture of
Finished Goods without By-Product/Co-Product/Scrap

In some manufacturing processes, only finished goods is produced without any Co-Products/By-Products/Scrap. In these scenario the cursor can skip the Co-Products/By-Products/Scrap section.

To skip the Co-Products/By-Products/Scrap section

1.     Go to Inventory Vouchers > F7: Stk Jrnl > select manufacturing journal.

2.     Click F12: Configure.

3.     Set the option Skip Co-Product/By-Product/Scrap Stock Item to Yes. The stock journal configuration screen appears as shown below:

4.     Press Ctrl+A to accept.

Note: When the option Skip Co-Product/By-Product/Scrap Stock Item is set to Yes, and while recording a manufacturing journal for a stock item for which the BoM is created by capturing the details of Co-Products/ By-Products /Scrap ; then the configuration is ignored and the details of Co-Products/ By-Products /Scrap are captured. You can also modify the details in Co-Products/By-Products/Scrap section.

Transfer Journal Voucher 

Program allows you to transfer materials from one Godown to another. The transfer of materials is done using the Transfer Journal Voucher.

To create stock journal for inter – godown transfers, 

1.     Go to Inventory vouchers > Alt+F7 for Stock Journal and select the class.

2.     Pass the stock transfer entry.

Printing Stock Transfer Voucher

To print stock transfer vouchers Press Alt+P to print the Stock Transfer Journal Voucher.

F12: Print Configuration

1.     While printing Stock Transfer Voucher, set the options Destination Godown on Top of Voucher and Print Godown Address to Yes.

2.     Enabling the option Destination Godown on Top of Voucher will display the Destination Godown name on the top of the voucher instead of printing as separate rows

3.     Enabling the option Print Godown Address will display the godown address as mentioned in the Godown Creation/Alteration screen.

Recording Inter-Project Transfer

Create stock journal classes to account for transfer of material from one godown to another, when a company has more than one godown, and account for the materials consumed for job costing.

1.     Go to Inventory Vouchers > Click F7: Stock Journal.

2.     Select Transfer as the Class.

3.     Enter Destination Godown (for which one project is assigned for job costing).

4.     Select the  Godown (for which another project is assigned for job costing).

5.     Enter Quantity and Rate.

6.     Press Enter.

7.     Enter Narration, if required.

8.     Press Enter.

9.     Press Enter to accept the stock journal. Note: Stock

Journal transactions which are recorded using godowns (tagged with a project), without selecting a voucher class will be displayed under Other Transfers in the.

8.  Physical Stock

Physical Stock Voucher is used for recording the actual stock which is verified or counted.  It could happen that the Book Stocks and the Physical Stock do not match. It is not unusual that the company finds a discrepancy between actual stock and computer stock figure.

Physical vouchers will be useful for recording purposes only if you have configured inventory vouchers to ignore physical stock differences. If you have configured the vouchers so that physical stock difference is not ignored, then all transactions subsequent to the physical stock voucher will use the balance as mentioned in that voucher

To view the
Physical Stock Voucher,

1.     Go to Inventory Vouchers.

2.     Select the button F10: Phys Stk from Button Bar or press Alt+F10.

3.     Enter the stock taking date.

4.     Select the name of the item from the List of items, for which physical stocks need to be recorded.

5.     Select the Godown (Godown will appear only if, Maintain multiple Godowns is activated in F11: Features > F2: Inventory Features), in which the Physical Stock taking was conducted.

6.     Select the Batch number (Batch details will appear only if, Batch wise details are activated in the Stock Item Master screen) for which the Physical Stock quantity is to be recorded.

7.     Enter the Physical Stock quantity.

Part-3

Optional And Non-Accounting Vouchers

1. Memorandum Voucher

2. Optional Vouchers

3. Reversing Journals

4. Post Dated Vouchers

Non-accounting/unconventional
vouchers are the special vouchers that are used to record provisional or non-accounting transactions. Unconventional vouchers are mainly used to exclude unnecessary entries or provisional entries from the books of accounts and make them available for what if (future reports, projections, forecasts, and so on) reports required at any given time.

1.  Memorandum Voucher

This is a non-accounting voucher and the entries made using memo voucher will not affect your accounts. In other words, Program does not post these entries to ledgers, but stores them in a separate Memorandum Register.  You can alter and convert a Memo Voucher into a regular voucher when you decide to bring the entry into your books.Some of the uses of Memorandum Vouchers are:

Making suspense payments

Consider that a company gives its employees cash to buy office supplies, the exact nature and cost of which are unknown. For this transaction you can enter a voucher for the petty cash advance, a voucher to record the actual expenditure details when they are known, and another voucher to record the return of surplus cash.

However, a simpler way of doing it is to enter a Memo voucher when the cash is advanced, and then turn it into a Payment voucher for the actual amount spent, when the details are known.

For example, the Company pays its employee Rs. 1000 as petty cash advance for Office Expenses.

The following entry has to be passed. To use Memorandum voucher,

1.     Enable the following option from F11: Accounting Features 

2.     Use Reversing Journals & Optional Vouchers.

3.     Go to Accounting Vouchers > Select Ctrl+F10: Memos from the Button Bar or click Ctrl+F10.

4.     Debit Office Supplies Account.

Credit Cash Account. Vouchers not verified at the time of entry If there is no clarity with the details of a voucher you are entering, you can enter it as a Memo voucher and amend it later when the details are available.

Items given for approval

Generally completed sales are entered into books. In case items are given on approval, use a Memo voucher to track and convert it into a proper Sales voucher. You can cancel/delete the memo voucher if the sale is not made.

Memorandum Voucher Register

To view all the memorandum vouchers, Go to Display > Exception Reports > Memorandum Vouchers.

Note: You can also view memorandum vouchers from the Day Book. You can alter and convert a Memo voucher into a regular voucher when you decide to consider the entry into your books. Use Scenarios to see the effect of Memo entries on reports and statements.

2.  Optional Vouchers

An existing voucher, such as a payment voucher or a receipt voucher, can be marked as optional. When a voucher is marked as Optional, it does not get posted. An optional voucher is not a separate voucher type.To mark a voucher as optional, press CTRL + L from the voucher. The button toggles between regular and optional. 

Note: To enable optional vouchers set Use reversing journals and optional vouchers? to Yes under F11: Features > F1: Accounts To mark a voucher type as optional

1.     Go to Accounts Info. > Voucher Types > Alter.

2.     Select a voucher type.

3.     Set Make Optional as default to Yes.

4.     Press Ctrl+A to accept.

After enabling this option, any vouchers entered using this particular voucher type will be marked optional.

Use of optional vouchers

· Mark a voucher Optional, when it is an incomplete transaction and you do not want it to affect the accounts. Once it is completed, modify the voucher and post it as a regular voucher. For example, optional sales invoice can be printed as a proforma invoice.

· Optional vouchers can be used to forecast future sales. For example, create a new voucher type, say Sales Forecast. Record future sales projections using this voucher type.

· Optional vouchers allow you to see the impact of transactions without actually posting them.

Consider an example, it is the 30th June and you would like to view the Balance Sheet as of today, but June salaries are not due for payment until the first week of July.  The Balance Sheet will not project the correct figures. To overcome this, you can enter an optional voucher dated 30th June. 

The Balance Sheet can be generated including the optional voucher, if it is defined as a scenario (for more details refer Scenario Management ). The voucher affects the report temporarily. Once you quit the report, the scenario details are not retained. Next time when you view the balance sheet, it will not include the optional voucher unless you include it.

The list of optional vouchers can be viewed in the optional voucher register. To view optional voucher register, go to  Display > Exception Reports > Optional Vouchers.

Note: Optional voucher can also be view from the Day Book.

3.  Reversing Journals

Reversing Journals are special journals that are automatically reversed after a specified date. They exist only till that date and are effective only when they are included in reports.  These are used in interim reporting in the course of the financial year where accruals are to be reported. These accruals are usually short term and are cleared in the subsequent period. However, to get a proper perspective, decision makers require the reports with full impact of all aspects and transactions.

1.     Go to Gateway of Program.

2.     Select F11: F1: Accounting Feature.

3.     Set Use Reversing Journals & Optional Vouchers? to Yes.

4.     Accept the screen to save.

You may use reversion journal for accounting for or providing for depreciation. Since, depreciation is usually provided during at the end of the year, using the Reversing journal you may include them for monthly reporting or a specific period to give more accurate status or position.

For example, on 30th June you want to view the Balance Sheet but June month’s rent is not been paid. You may create a Scenario (refer Scenario Management for more information) and pass a Reversing Journal entry to view the reports which will be effective up to the applicable date. When you view the Balance Sheet, Program displays the report with the reversing journals included. The voucher affects the report only for that day, 30th June.

Applicable up to

The reversing Journal is available for inclusion in a scenario report till this date. The Reversing Journal can be created as of a particular date and made Applicable up to a different date.

Reversing Journal Register

All vouchers are maintained in a Reversing Journal Register. These are not posted to any books of accounts and cannot be included in regular reports. They can only be seen using a scenario. Go to Display > Exception Reports > Reversing Journals.

4.  Post Dated Vouchers

While entering vouchers, you can mark them as post dated, as a result these vouchers are not updated in the ledgers till the date specified in the voucher. This is useful for entering transactions that take place on a regular basis. For example, if you issue post dated Cheques towards payment of installments, you can set up the payments in advance, and Program will only update them in the ledgers on
the due date. Mark vouchers Post Dated by using CTRL + T

Post-dated Vouchers Register

All Post-dated vouchers are maintained in Post-dated voucher Register. Go to Gateway of Program> Display> Exception Reports> Post-Dated Vouchers

Difference in the treatment of Post-dated Vouchers and other Unconventional Vouchers

The major difference between post dated vouchers and other Unconventional vouchers is that post-dated Vouchers affect regular books of accounts on the date of the voucher. Post-dated vouchers are not available for selection in Scenarios.

Part-4

Order Processing

1. Enabling Order Processing

2. Viewing Order Position

3. Purchase Order Processing

4. Sales Order Processing

5. Job Order Processing

6. Viewing Order Position

Order Processing in Program can be classified into Purchase/Sales Order Processing and Job Order Processing.

1.  Purchase / Sales Order Processing

Purchase Order Processing is the process of placing orders with suppliers for a purchase to be made from them and Sales Order Processing is the process of receiving orders from customers for the purpose of selling. Usually, companies need to track the
Order details for Sales and Purchases as this significantly helps in planning the production process accordingly.

This, Order Processing is linked to Inventory. This allows tracking of the order position for a Stock Item. Using this you can track the arrival of goods ordered and whether the ordered Stock Item are delivered on time etc.

2.  Job Order Processing

Job Order Processing is the process of taking an order to manufacture or process goods as per the prescription of the client by utilising the material supplied by the client or purchased on behalf of the client and charging him for the services provided as Job Work or Sub Contract.

This allows to process the job work taken from a client as well as job work given to job workers. It also allows the principal company to track the materials despatched to job workers and materials received against the job given, and vice versa.

Purchase Order- Purchase Order is an order placed by a business entity with a supplier for the delivery of specified goods at a given price and at a predetermined time. 

Sales order- Sales Order is an order placed by a customer for the delivery of specified goods at a given

price and at a predetermined time.

Job Order- Job Order can be classified into Job Work Out Order and Job Work In Order.

Job Work Out Order- Job Work Out Order is an order placed by the principal to manufacture or process goods as per the prescription given to the job worker.

Job Work In Order- Job Work In Order is an order received by the job worker to manufacture or process goods as per the prescription given by the principal. Click on the following links for more:        

Enabling Order Processing

To enable purchase order, sales order, and job order processing in Program, you have to activate the required features in F11: Features ( F2: Inventory Features). Enable the following features in the Order Processing section:

· Enable purchase order processing

· Allow Sales Order Processing

· Enable job order processing

Note: When Enable job order processing is set to Yes, the options Maintain multiple Godowns and Use material in and out vouchers get enabled automatically.

Viewing Order Position

Stock Summary report can be viewed by adding columns or To view the order position in stock summary,

1.     Go to Stock Summary.

2.     Press Alt + F1 (For detailed view).

3.     Press Alt + N > Select Orders & Stock Details. Orders & Stock Details screen is displayed: Or In the Stock Summary screen, you can add a new column using Alt + C.

4.     Sales Order Reports can be accessed through Alt+F7 or Alt+C of the Stock Summary.

Viewing Purchase or Sales Order Outstanding

To view purchase or sales order outstanding, Go to Stock Summary > Press F9 > select Purchase or Sales Order. Note:

Inventory Reports and Accounting Reports can also be accessed through ALL other reports by pressing F9 or F10 (Accounting/ Inventory Reports).

3.  Purchase Order Processing

When the order is placed with the suppliers for the supply of goods, the items, quantities, date of receipt, and so on, details are given with the Purchase Order Number.
Later, when these goods are received, the Purchase Order is tracked for the Order Details either in the receipt note or in the purchase Invoice. The

Outstanding Purchase Order reports are available in Program. It is possible to know the order position of any item in the Stock Summary. Separate Purchase Order Outstanding report and Purchase Order Summary report are also available.

Recording a Purchase Order

A purchase order is placed by a business entity with a supplier for the delivery of certain goods at a given price and time. Purchase order processing has to be enabled in order to create a purchase order.

To enable purchase order processing

1.     Go to F11: Features > Inventory Features.

2.     Set Enable purchase order processing? to Yes.

3.     Press Ctrl+A to accept.

To create a purchase order

1.     Go to Inventory Vouchers > Ctrl+F2 > F4: Purc. Order to view the Order Voucher Creation screen.

2.     Enter the Party’s A/c Name.

3.     Enter the Order No.

4.     Select the Name of Item from the List of Stock Items, or press Alt+C to create a new stock item.

5.     Enter the Quantity of the item, as required.

6.     Enter the Rate of the item. The Order Voucher Creation screen appears as shown below:

7.     Press Ctrl+A to accept. 

Now, you can send the purchase order for an item to your supplier.

4.  Sales Order Processing

When the order is received from a customer for goods to be supplied, the Items, quantities, date of delivery, etc., details are given with Sales Order Number. Later when these goods are delivered, this Sales Order is tracked for the order Details either in the delivery note or in the sales invoice.

The Outstanding Sales Order reports are available in Program. It is possible to know the order position of any item in the Stock Summary. Separate Sales Order Outstanding report and Sales Order Summary report are also available.

Recording a Sales Order

To create a Sales Order,

· Go to Inventory Vouchers > press Alt + F5 or click on Sales Order.

· Select the Customer’s name from the List of Ledger Accounts. Press Alt + C to create a new account.

· The Order number is automatically displayed. By default it will take the Voucher number as Order No. You can change this number if required.

· You can also configure the voucher type for Sales Order, to get the Suffix and Prefix for the sales orders. (Go to Accounts Info / Inventory Info > Voucher Types > Alter > Sales order > Set Yes to Use Advance Configuration). 

· For more details on Advance Configuration refer to Use Advance Configuration

· Select the Item for which the order is to be placed from the List of Stock Items. The Item Allocations sub-screen is displayed as shown.

· Enter the details.

· Enter the due date for the Delivery of the items. This monitors outstanding Delivery of the items.

If orders are split for different dates, then specify the due date for the first lot to be
received. After selecting the quantity, rate and amount; specify the due date for the second lot and so on. After specifying the due dates for all the lots, press Enter in the Due on field to return to the Voucher Creation screen.

Note: Godown/Location field will appear, if multiple-location feature is enabled in F11:Features (F2: Inventory Features).

Enter the quantity of the item and its rate. The amount will be calculated automatically.

Job Order Processing

Job Order Processing is the process of taking an order to manufacture or process goods as per the prescription of the client by utilising the material supplied by the client or purchased on behalf of the client and charging him for the services provided as Job Work or Sub Contract.

This allows to process the job work taken from a client as well as job work given to job workers. It also allows the principal company to track the materials despatched to job workers and materials received against the job given, and vice versa. This voucher allows the principal company to raise Job Orders on Job Worker.

· Creating a Job Work Out Order

· Altering and Deleting a Job Work Out Order Creating a Job Work Out Order To create a job work out order, Go to Order Vouchers > press Alt + J or click on J: Job Work Out Order. Party’s A/c Name- Select the Supplier’s (Job Worker) name from the List of Ledger Accounts. Use Alt + C to create a new account.

The Party Details screen is displayed. Provide the details as shown:

Order No- Enter the Job Work Out Order Number under Order No column.

Name of the Item- Select the Stock Item for which order is placed, from the List of Stock
Items. The Item Allocations sub-screen is displayed. Enter the details.

Track Components- Set the option to Yes if components need to be tracked.

Due On

· Enter the due date for receipt of the items. This monitors outstanding receipts.

· If orders are split for different dates, then specify the due date for the first lot to be received and select the quantity, rate and amount. Next, specify the due date for the second lot, and so on. After specifying the due dates for all the lots, press Enter in the Due on field to return to the Voucher Creation.

Godown – Select the required Godown from the list.

Note: For the godown selected in the Item Allocation screen, the options Our Stock with Third Party and Third Party Stock with us should not be enabled in Godown masters.

Quantity, Rate and Amount

· Enter the ordered quantity of the item and its rate. The amount will be calculated automatically.

· In case the option Track Component is set to Yes, the Component Allocation screen is displayed when the Quantity is entered:

Note: The Components Allocation displays the list of components specified in the Ordered Item master.

· Accept to Save.

Narration – This field is optional. Enter the required particulars concerning the order. For more details on F12 configuration refer Invoice / Order Entry.

Altering and Deleting a Job Work Out Order

To alter a Job Work Out Order,

· Go to Display > Day Book Or Go to Display > Job Work Out Reports > Job Work Registers > Job Work Out Orders Book

· Make the necessary alterations and save. Deleting a Job Work Out Order

To delete a Job Work Out Order, Press Alt + D in the Job Work Out Order alteration screen.

Printing Co-Product, By-Product, and Scrap List To print a job work out order, Click P: Print

in the job work out order screen. The Job Work Out Order Printing Configuration screen appears: When the option Print Co-Product/By-Product/Scrap List is enabled while printing a job work out order, the respective co-product, by-product, and scrap list is printed in the invoice.

Viewing Order Position

Stock Summary report can be viewed by adding columns or To view the order position in stock summary,

1.     Go to Stock Summary.

2.     Press Alt + F1 (For detailed view).

3.     Press Alt + N > Select Orders & Stock Details Or In the Stock Summary screen, you can add a new column using Alt + C.

4.     Sales Order Reports can be accessed through Alt+F7 or Alt+C of the Stock Summary.

Viewing Purchase or Sales Order Outstanding

To view purchase or sales order outstanding, Go to Stock Summary > Press F9 > select Purchase or Sales Order.

Note: Inventory Reports and Accounting Reports can also be accessed through ALL other reports by pressing F9 or F10 (Accounting/ Inventory Reports).

Part-5

Advanced Voucher Entry

1. Using Additional Cost of Purchase

2. Using Tracking Numbers

3. Using Zero Valued Entries

4. Using different Actual and Billed Quantities

5. Using Batch wise details

6. Using Mfg. and expiry dates

7. Using Cost Categories and Cost Centres

8. Using Cost Centre Class

9. Using Multi-currency

Advanced usage in voucher entry involves using more features. This would mean entering of data in various pop-up and sub-screens depending on the context and configuration settings.

1.  Using Additional Cost of Purchase

In many
situations, more than one item is purchased where the expense incurred is charged as a lump-sum amount. However, to give an effective cost including the expense to each of the items, additional costs of purchase option is used. This process is automated and allocation of the expense to stock item can be done on a predefined basis.

Enabling Additional Costs of Purchase

In F11:Features (F2: Inventory Features) under Purchase Management, set Track additional costs of purchases to Yes. The additional costs/ expenses incurred can be allocated to each item based on:

Quantity or Value

The following set-up activity is required to appropriate the additional costs:

· Alter the Parent Group of the expense ledger accounts, e.g. Indirect Expenses. (Go to Accounting Info > Groups >Alter > Direct Expenses).

· You will find a new option – Method to Allocate when used in Purchase Invoice.

· If you want to appropriate the ledger accounts under this group to stock items either by Quantity or value, you must select the respective option. For example, select Appropriation by Qty.

Creating Purchase Entry

Purchase entry in As Voucher mode: The additional cost details have to be filled in after the allocation of each purchase item. While creating the Purchase Voucher, once after giving the Quantity and Rate in the Inventory Allocations, press Enter button on the Amount column, Additional Cost Details screen will be displayed.

2.  Using Tracking Numbers

A Tracking number is the reference to have a link between transactions. For example, if Tracking Number is selected in the Delivery Note, this will help you to automatically display the details of the items in the Sales Invoice.  The tracking number pop-up list appears after you have entered the name of the item.

A default list will contain the following:

Tracking No: When the tracking number (01) is given in the delivery note and when you track this from List of Tracking
Numbers in the sales invoice; the quantity, rate and amount will be displayed automatically.

New number – Enter a new number, if the tracking number is other than the default tracking number available in the List
of Tracking Numbers.

For example, you can create a Sales bill first and then later deliver the goods. In order to track the bills with the relevant delivery challan, a new tracking Number is used.

Not applicable – If you do not want a tracking number, then select Not Applicable.

This may be used in cases where you want to update stocks immediately, when Goods are received or delivered directly without receipt note or delivery note.

For example, when you send out samples for approval and you do not want to raise delivery note. Likewise when you receive samples but no receipt note is raised.

Trouble Shooting Sales and Purchase Voucher

In companies using Accounts-with-Inventory, where Tracking Numbers is NOT activated, you do not get the voucher types Receipt Note and Delivery Note in the Sales and Purchase Voucher sub-menus.

The inventory details that you mention in an accounting voucher (like Sales and Purchase Voucher), affect stocks by immediately updating them, only if Tracking Numbers is not activated in F11:(F2: Inventory Features).

The option Inventory Values are Affected should be set to Yes in Sales and Purchase ledger accounts (Masters).  Unless this option is set to Yes in the Ledger creation screen, it is not possible to make a Sales entry or a Purchase entry.

The information that you need to give in the inventory allocation sub-screen depends upon the features enabled for the company.

3.  Using Zero Valued Entries

Zero-valued entries are those entries where a voucher entry is made without any values, that is, one of the parameters (Qty or Rate) may not have a value but needs to updated in the records.

The items which are given as Free Samples.

Enabling Zero Value entry

To enable zero value entries Go to Accounting Features > F2: Inventory Features. Even if the values are not mentioned, the quantities of Item B will be reduced from the stocks.

4.  Using different Actual and Billed Quantities

Sometimes, the goods purchased or sold may have difference in the Actual and the Billed quantities due to the following reasons:

· Free scheme

· Rejected by the customer for defective quality

· Rounding off of the billing quantity (for e.g., in Textile industries, Cloth measuring 150.50 mtrs is actually delivered but bill is made for 150 mtrs) Recording of Actual Quanties and the Billed Quanties are essential to get the accurate stock values and sale/purchase value i.e., the Books of Accounts should be updated with the Billed quantities and Stocks has to be updated only with the Actual Quantities. Program allows you to record both these in different fields i.e., Billed and Actual Quantity separately in the same invoice.

Set the option Use separate actual and billed quantity columns to Yes in F11: Features > F2: Inventory Features.

Purchase or Sales vouchers with Actual and Billed quantity will appear.

· Actual

· Billed

Once when quantities are entered under Actual and Billed, stocks will be reduced to the extent of Actual quantities only. For example, a company gives 2 items free as a sample to the customer, when 10 items are purchased. Then under Actual qty column 10 numbers will be entered and under

Billed quantity 8 numbers will be entered. In the stock summary 10 numbers will be shown under Outwards.

5.  Using Batchwise details

When you wish to maintain batch information for Stock Items, you need to set the option Maintain batch-wise details to Yes in F11: Features (F2: Inventory Features). In the Item Allocation screen, set the option Maintain in Batches to Yes. When you set this to Yes, you will find the Item Allocation screen.

Godown- Select the Godown from the List of Godowns.

Batch / lot No.- Select the Batch number from the list of existing Batch numbers which will be displayed under List of Active Batches else click on New Number to give the new Batch number. Quantity, Rate and Amount- Enter the quantity and rate. The Amount will be calculated automatically.

Per-By default, the specified Unit of measure will be displayed here. The Rate is computed on the basis of Unit you specify here.

6.  Using Mfg. and expiry dates

Usually, pharmaceutical companies, chemical industries, and so on, need to maintain their stock items with manufacturing dates and expiry dates.  you can maintain Batches with Mfg (Manufacturing) and Expiry dates.

Enabling Mfg. & Expiry Dates

To enable manufacturing and expiry dates,

· Set Maintain batch-wise details and expiry dates for batches to Yes in F11: Features > F2: Inventory Features.

· In the Item Allocation screen, set Maintain in Batches, Track Date of Mfg and Use expiry dates to Yes. When you set this to Yes:

Godown- Select the Godown from the List of Godowns.

Batch / lot No.- Select the Batch number from
the list of existing Batch numbers which will be displayed under List of Active Batches else click on New Number to give a new Batch number. 

Quantity, Rate and Amount- Enter the quantity and rate. The Amount will be calculated automatically.

Per-By default, the specified Unit of measure will be displayed here. The Rate is computed on the basis of Unit you specify here.

Mfg. Date- Enter the date of manufacture (This appears only if it is activated.). The date of manufacturing of the product needs to enter here. This enables you to set the expiry date for the batch as a period from the date of manufacture such as “three months from the date of manufacture”. 

Expires on –Give the date of expiry (It will be displayed only if it is activated).

7.  Using Cost Categories and Cost Centres

Cost Centres can be allocated in the vouchers. Activate Cost Centre for the Ledger Accounts that are used in voucher entry.

Activate Maintain cost centers and Maintain more than one payroll or cost category in F11: Features > F1: Accounting Features.

Applying Cost Centres to Ledger Accounts

To apply cost centres to ledger accounts, For example, enable Cost Center for Payment ledger – conveyance account.

· Go to Accounts Info > Ledgers > Create/Alter

· Set the option Cost centres are applicable to Yes.

Cost Centre Allocation in Voucher Entry

Cost Centre allocations have to be done in the pop-up sub-screens in the main voucher entry screen. The sub-screen is displayed after the amount fields pertaining to the ledger for which cost centers have been activated.

The entire objective of creating Cost Centres is to allocate expenses and revenues to Cost Centres.

After allocating the Cost Centers, the payment voucher entry screen is displayed as shown.

8.  Using Cost Centre Class

Each voucher now contains the Cost Centre/Classes option at its head. Select Not Applicable in case you want to allocate manually. Select a cost centre class to auto-allocate according to the predefined percentages set in that class.

Let us examine this with two examples, a sales entry and a payment entry.

In sales, let us select Export as the Cost Centre Class.

· Go to the Voucher Entry Screen.

· Select F8: Sales.

Cost Centre Class

1.     Select one of the classes created earlier, in this case Export. 

2.     Now enter the sales invoice. The cost centre allocation sub-screen will not be displayed but the allocation will be done automatically.

3.     After accepting the entry, check the cost centre displays to verify whether the allocation was done correctly.

4.     Similarly, when you press F5: Payment, similar options are displayed. Select Marketing Expenses in that case. The cost centre allocation sub-screen will not be displayed but the allocation will be done automatically.

5.     Use PgUp to check the entry in alteration mode. It will display the allocation in the voucher. 

6.     Check the cost centre reports for allocation.

9.  Using Multi-currency

The
multi-currency feature in Program enables you to create vouchers in multiple currencies. Subsequently, you can also print an invoice in the multi-currency mode.

1.     To record a purchase voucher with multi-currency 

2.     Go to Gateway of Program > Accounting Vouchers / Inventory Vouchers > F9: Purchase.

3.     Select the Party’s A/c Name.

4.     Select the Name of Item.

5.     Enter the Quantity.

6.     Enter the Rate of the item in the required foreign currency.

7.     Press Enter to view the Forex Rate of Exchange screen, as shown below: 7. Enter the latest Rate of Exchange.

8.     Press Enter to view the Accounting Voucher Creation screen.

9.     Press Ctrl+A to accept.

To record a sales voucher with multi-currency

1.     Go to Accounting Vouchers / Inventory Vouchers > F8: Sales.

2.     Select the Party’s A/c Name.

3.     Select the Name of Item.

4.     Enter the Quantity.

5.     Enter the Rate of the item in the required foreign currency.

6.     Press Enter to view the Forex Rate of Exchange screen:

7.     Enter the latest Rate of Exchange.

8.     Press Enter to view the Accounting Voucher Creation screen:

9.     Press Ctrl+A to accept.

To print the invoice with multi-currency

1.     Go to Accounting Vouchers / Inventory Vouchers > F8: Sales.

2.     Press Alt+P to view the Voucher Printing screen.

3.     Click F12: Configure to view the Invoice Print Configuration screen.

· Set Print Base & Foreign Currency for Total? to Yes.The Invoice Print Configuration screen appears:

· Press Ctrl+A to accept to view the Voucher Printing screen.

· Press Enter to print the invoice with multi-currency.

The print preview of the Sales Invoice appears: The Total Invoice Amount appears in both the base currency and the foreign currency.

Company Management

Company Feature

In Accounting Program, you can enable and use the available features as required for your company.

To enable company features

1. Go to F11: Features.

2. Select the required features in the Company Features menu.

3. Enable the required features.

4. Press Ctrl+A to accept.

Part-1

Accounting Management

Using the Accounting Features, you can enable various options required for making transactions in your business.

To enable the accounting features

1.    Go to F11: Features > F1: Accounts. The Company Operations Alteration screen appears as shown below:

2.    Enable the required options.

3.    Press Ctrl+A to accept.

If inventory vouchers and features are not appearing for your company, set the option Maintain accounts only to No, to use the Inventory features.

General Accounting Features

ü  Maintain accounts only- Enable this option if you do not have any inventory transactions.            

ü  Integrate accounts and inventory- Enable this option to include the stock or inventory balance from the inventory records. Provides a drill down to the stock registers from balance sheet. Disable this option to maintain accounts and inventory separately. Stock records often contain compensating errors caused by wrong allocation to items. This feature enables finalization of
financial books without waiting for the reconciliation of stocks.

ü  Use Income and Expenses A/c instead of Profit and Loss A/c- Enable this option to display income and expenses a/c as the menu item instead of profit  and loss a/c in the Gateway of Tally menu. Income and expenses statements are
generally used for non-trading accounts and profit and loss a/c are used for trading accounts.

ü  Enable multi-currency– Enable this option to enable working with multiple currencies.            

Outstanding Management

ü  Maintain bill-wise details- Enable this option to display the option Maintain balances bill by bill in all ledgers
created under sundry debtors and creditors.  When you enter details of sales and purchases with the bill wise option activated, Accounting Program prompts you to identify the invoice with an appropriate reference number.

       The reference number can then be used to allocate payments to the correct invoice to maintain an accurate account of outstanding.
Bill wise details for non-trading accounts is useful when one needs to track either an instalment to be paid or a loan amount to be received over a certain period of time.

ü  Activate interest calculation- Enable this option to calculate interest automatically based on the interest rate and style of calculation specified. he advanced parameters are useful when interest rates change from time to time. Set this option to Yes to enable this function.

Cost/Profit Centres Management

ü  Maintain payroll- Enable this option to maintain payroll information in Accounting Program for the
selected company.

ü  Maintain cost centres- Enable this option to maintain and allocate expenses to cost centres.

ü  Use cost center for job costing- Enable this option to track all income and expenses.

ü  Maintain more than one payroll or cost category- Enable this option to create more than one Payroll or Cost Category.

ü  Use pre-defined cost centre allocations in transactions-Enable this option to define Cost Centre Allocations.

ü  Show opening balance for revenue items in reports- Enable this option to display the opening balance in Cost Centre report for the cost centres which are allocated to the ledgers, grouped under Income and Expenses Group.

Invoicing Features

ü  Enable invoicing- Enable this option to create Sales and Purchase vouchers in the invoice format.

ü  Record purchases in invoice mode- Enable this option to enable voucher class option in purchase voucher type.

ü  Use debit and credit notes- Enable this option to use the debit note and credit note voucher types.

ü  Record credit notes in invoice mode- Enable this option to create credit notes in invoice mode.

ü  Record debit notes in invoice mode- Enable this option to create debit notes in invoice mode.

Budgets & Scenario Management

ü  Maintain budgets and controls- Enable this option to create multiple budgets. The Budgets menu option is displayed in Masters Info. > Accounts Info. menu.

ü  Use reversing journals and optional vouchers- Enable this option to display the Scenario option in Accounts Info menu. You can create and alter scenarios. You can record Reversing Journal and make it Optional for the entries to not
affect the books.

Banking Management

ü  Enable cheque printing- Enable this option to use cheque printing.

ü  Edit banking features- Enable this option to alter banking features.

ü  Set/alter post-dated transaction features- Enable this option to record post-dated transactions and view related reports.

Other Management

ü  Enable zero-valued transactions- Enable this option to allow zero valued transactions in vouchers.

ü  Maintain multiple mailing details for company and ledgers- Enable this option to maintain multiple mailing details for your company and ledgers.

ü  Set/alter company mailing details- Enable this option to create or alter Address Types.

ü  Enable company log- Enable this option to print the company logo on the selected vouchers, reports, and
invoices.

Part-2

Inventory Management

Using the Inventory Features, you can enable various options required for making transactions in your business.

To enable the inventory features

1. Go to F11: Features > F1: Inventory.

2. Enable the required options.

3. Press Ctrl+A to accept.

General

ü  Integrate accounts and inventory- Enable this option to include the stock or inventory balance from the inventory records.  Provides a drill down to the stock registers from balance sheet. Disable this option to maintain accounts and inventory
separately. Stock records often contain compensating errors caused by wrong allocation to items. This feature enables finalization of financial books without waiting for the reconciliation of stocks.

ü  Enable zero-valued transactions+ Enable this option to allow zero-valued transactions in Inventory vouchers.    

Storage and Classification

ü  Maintain multiple Godowns / Excise Units- Enable this option if you have more than one stock storage locations or godowns, and you want to track stock movement across these Locations.

ü  Maintain stock categories- Enable this option to create and maintain stock categories

ü  Maintain batch-wise details- Enable this option to maintain batch information pertaining to Stock Items. A new
field Maintain in Batches is displayed in the Stock Item Creation screen.

ü  Set expiry dates for batches- Enable this option to set expiry dates for the batches. This displays an additional field Use Expiry Dates in the Stock Item Creation screen.

ü  Use separate actual and billed quantity columns- Enable this option to specify quantities, that are different from those delivered/ received, when invoicing.

Order Processing

ü  Enable purchase order processing- Enable this option to create purchase orders. This feature can also be used for pre-closure of purchase order.

ü  Enable sales order processing- Enable this option to create sales orders.

ü  Enable job order processing- Enable this option to create job work out or in orders.

Invoicing

ü  Enable invoicing- Enable this option to create Sales and Purchase vouchers in the invoice format.

ü  Record purchases in invoice mode- Enable this option to enable voucher class option in purchase voucher type.

ü  Use debit and credit notes- Enable this option to use the debit note and credit note voucher types.

ü  Record credit notes in invoice mode- Enable this option to create credit notes in invoice mode.

ü  Record debit notes in invoice mode- Enable this option to create debit notes in invoice mode.

Purchase Management

ü  Track additional costs of purchase- Enable this option to obtain a break-up of purchase costs, without the need to separately debit ledger accounts for expenses.

Sales Management

ü  Use multiple price levels- Enable this option to create multiple price levels.

Other Features

ü  Use tracking numbers (enables delivery and receipt notes)- Enable this option to use tracking numbers to maintain the relation between delivery notes and invoices. This is available for both purchases and sales.

ü  Use rejection inward and outward notes- Enable this option to record rejection of goods separately and not through a common debit note or credit note.

ü  Use material in and out vouchers- Enable this option to record transfer of item quantity towards the party and transfer material from one Godown (Location) to the other.

ü  Use cost tracking for stock item- Enable this option to analyse the cost involved for an item.

Part-3

Statutory And Taxation Management

Accounting Program supports the various taxes applicable in India. You can maintain accurate books of accounts and generate
error-free returns by detecting the missing information in the transactions, if any, and correct them before filing returns.

You can use statutory and taxation features in Accounting Program by enabling the required options in the Company
Operations Alteration screen.

To enable statutory and taxation features

Part-4

Audit Management

Enable this option to use auditing features. The option F5:
Audit Features is available only in the Accounting Program Auditor Edition. To enable audit features

Company Configuration

Configurations are application centric configurations that are present across all screens of Accounting Program. These
configurations can be changed and managed any number of times to suit changing needs.

Configuration options, affect all the companies maintained in the same Accounting Program directory and setting the
configuration for one company will affect the configuration of other companies in that particular data directory.

Part-1

Voucher Entry Configuration

You can customise the voucher entries in Accounting Program, both the accounting and inventory vouchers, by enabling required options in the Voucher
Configuration.

1. Go to Configure > Voucher Entry. The Voucher Configuration screen appears:

2. Enable the required options.

3. Press Ctrl+A to accept.

Accounts

ü  Skip Date field during creation for faster entry-By default, the cursor skips the Date field during Voucher creation. If you do not want to skip the date field then set this option to No.

ü  Use single entry mode for payment/receipt/contra vouchers- By default, Accounting Program displays single entry mode for payment/receipt/contra entry. If you want to display it in double entry mode, then set this option to No.

ü  Use payment/receipt as contra voucher- Enable this option to use payment and receipt voucher as contra voucher.

ü  Use Cr/Dr instead of To/By during entry- Enable this option to change To/By to Cr/Dr in the vouchers.

ü  Use cheque printing for contra voucher- Enable this option to print the cheques from contra voucher while making the interbank transfers and cash withdrawals.

ü  Warn on negative cash balance- By Default, Accounting Program displays a Negative Cash balance warning Message. If you set it to No, the error message will not be displayed.

ü  Preallocate bills for payment/receipt/journal voucher- Enable this option to preallocate the bills before specifying the ledger amount.

ü  Allow cash accounts in journal vouchers- Enable this option to select cash and also bank account in Journal voucher.

ü  Allow expenses/fixed assets in purchase vouchers- Enable this option to select the expenses and also fixed asset ledger in purchase voucher.

ü  Show inventory details- By default, Accounting Program displays inventory details in the voucher entry
screen. If you set it to No, the inventory details will not be displayed.

ü  Show table of bills for selection- By default, pending bills list of a ledger account are displayed in the voucher entry screen. If you set it to No, the pending bills list will not be displayed.

ü  Show bill-wise details- By default, Bill-wise details of a ledger account are displayed in the Voucher
entry screen. If you set it to No, Bill wise details will not be displayed

ü  Show current balances of ledgers- By default, the ledger current balance up to last voucher entry date are displayed. If you set it to No, the ledger current balance will not be displayed

ü  Show balance as on voucher date- By default, the ledger current balance up to last voucher entry date are displayed. If you set it to Yes, it will display the ledger balance up to current voucher entry date

ü  Show forex gain/loss as on voucher date- By default, the Forex Gain/Loss balance up to the last voucher entry date are displayed. If you set it to Yes, it will display the Forex Gain/Loss balance up to current voucher entry date

Inventory

ü  Provide reference number in stock journal- Enable this option to add the voucher reference field in Stock Journal also.

ü  Show compound unit of item based on rate- Enable this option to show the compound unit of item based on the unit provided in the Rate Per column.

ü  Show full details of compound unit – Enable this option to display full details of compound unit in the Quantity field. If Kgs is typed in Rate Per field, the Quantity field will display as 12 Kgs.250 grms.

ü  Warn on negative stock balance- By default, a warning message is displayed for negative stock balance. If you set it to No, the error message will not be displayed.

ü  Allow use of expiry batches for all stock items- By default, the expiry batches in the list of active batches during voucher entry are displayed. If you set it to No, expiry batches will not be displayed in the List of Active batches.

ü  Show balances as on voucher date- By default, the stock item balance up to the last voucher entry date are displayed. If you set it to Yes, it will display the Stock Item balance up to current voucher entry date.

ü  Show Godown-wise details- By default, the Godown details in rejection in/out vouchers are displayed. If you
set it to No, the godown details will not be displayed in the rejection in/out vouchers.

ü  Show batch-wise details- Enable this option to display batch information of stock items during voucher entry.
If you set it to No, the Batch-Wise details will not be displayed.

Payroll

ü  Allow cost centre allocation in payroll voucher- Enable this option to allow cost centre allocation in the payroll vouchers.

Statutory

ü  Allow modification of tax details- Enable this option to modify tax details.

Part-2

Invoice, Delivery Note, or Order Configuration

You can customise your invoice, delivery notes, and other order vouchers using the options available in the Invoice Configuration screen. This involves specifying or automatically allocating the invoice value to a bill reference.

To change the invoice configuration

1. Go to F12: Configure > Invoice / Orders Entry. The Invoice Configuration screen appears:

2. Enable the required options.

3. Press Ctrl+A to accept.

General Options

ü  Enable supplementary details- Enable this option to view the Party Details screen, when a party ledger is selected during invoice entry. Despatch details, order details, and buyer’s details can be recorded.

ü  Allow separate buyer and consignee names- Enable this option to enter buyer and consignee details separately in the Party Details screen.

ü  Allow modification of all fields during entry- Default order/delivery note entries appearing in the invoice can be changed during invoice entry. Enable this option to permit modification of all fields.

ü  Use common Ledger A/c for item allocation- Enable this option to allocate all the items selected in the invoice to a common sales or purchase account. If each item in the invoice has to be allocated to different ledger accounts, then this
option should be set to No.

ü  Use defaults for bill allocations- Set this option to No, to enter the reference number, or select the required bill while saving an invoice. Set this option to Yes, to automatically display the invoice number as the bill reference name. The credit period specified in the party ledger master will be automatically captured by default in the bill wise details screen.

ü  Provide
additional descriptions for item name- Enable this option to specify
description for each item selected in the invoice.

ü  Provide additional descriptions for ledger name- Enable this option to specify the description for each Ledger selected in the Accounting invoice entries.

ü  Consolidate stock items with same rates- Enable this option to consolidate the stock items having same rates in Invoice/Challans.

ü  Show compound unit of item based on rate- Enable this option to show the compound unit of item based on the unit provided in the Rate Per column.

ü  Show full details of compound unit- Enable this option to display full details of compound unit in the Quantity field. If Kgs is typed in Rate Per field, the Quantity field will display as 12 Kgs.250 grms.

ü  Show turnover achieved with customer- Enable this option to view the turnover achieved till date with a particular customer.

Exporter’s Options

ü  Provide export shipping details- Enable this option to enter export details for the invoice in the Supplementary details screen.

You can enter the following details:

● Place of Receipt

● Vessel / Flight No. (the transport used to send the goods)

● Port of Loading (from where the goods are despatched)

● Port of Discharge (where the goods will be finally offloaded)

● Country To (to which country the goods are being sent)

ü  Provide marks and numbers./container no.- Enable this option to specify Marks for every item selected in the invoice.

ü  Provide number and kind of packages- Enable this option to specify Num. Packages for every item selected in the invoice.

Inventory

ü  Warn on negative stock balance- Enable this option to warn if the item selected reaches a negative balance.

ü  Warn on duplicate order number- Enable this option to display a warning message to notify when an order number is repeated.

ü  Use expired batches for all stock items- By default, this option is set to Yes. Disable this option to not include expired batches in the list of batches displayed at the time of entry.

ü  Provide complete accounting allocations in order/delivery note- Enable this option for faster data entry at the time of entering sales/purchase invoices against the deliver or receipt notes.

Statutory

ü  Calculate tax on current sub-total- Enable this option to calculate tax on the current subtotal value and not on inventory total value.

ü  Allow modification of tax details- Enable this option to modify tax details.