Accounting Setup

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Table of Contents#System Administrator's Guide | Implementation | Accounting Setup | Banking Setup

The Accounting Setup process provides the steps necessary to set the accounting rules.

To access the Accounting Setup browse the menu tree to Performance Analysis » Accounting Rules and select Image:Icon_mWorkFlow.png Accounting Setup. A screen similar to the one shown below will appear.

 

 

The workflow includes six windows that can be modified to setup the accounting rules for the new business:

  • Calendar Year and Period Window - this window allows you to define the calendar years and create periods within the years. The top level tab just defines the name of the calendar. The Year Tab obviously defines the year. In the form view of this tab is a button to "Create Periods" that will open a form where you can enter the naming format for the periods. Use something that will stand alone, like "Nov 10" or "2010-11". Perhaps a bug, note that the Account Info window, when sorting by period, will use an alphabetical sort based on the period name rather than the associated dates. For that reason, I suggest using the "2010-11" format (yyyy-MM).
  • Account Element Window - The account element window is where you can setup your account tree and make changes to the accounts that you have imported. The top level tab defines the tree. The Element Value Tab includes a tree control where you can change the tree structure and insert additional summary accounts as required. It is recommended that you create a summary account for each of the line entries on your financial statements and group the necessary accounts under the summary account using this tab rather than doing the same thing on a number of reports. Also, keep the account sign set to "Natural". The sign for the account will depend on the type of account (Assets have positive debits, negative credits) and how it is used in a report.
  • Accounting Schema Window - This is one of the powerful features of ADempiere. An Accounting Schema defines an accounting method and the elements that will comprise an account structure. In ADempiere it is possible to have multiple accounting schema in the same way a paper based accountant would maintain multiple sets of books for the business. The Schema allows you to have multiple sets of accounts and to use different rules in each. For example, in one schema, you may want to show investor equity that has converted to a debt as shareholder equity. In another schema, you may be required to show it as a liability. You may have different rules about revenue recognition and the use of deferred revenue. The multiple schema allow you to do this. For each schema, you need to create and activate elements for detailed accounting for Business Partners, Products, Locations, etc. You also should review and change the GL and Default accounts. The actual accounts used in transactions depend on the executing organization. Most of the information is derived from the context. The actual accounting consequences will replace the Organization used in the account defaults with the Organization on the executing documents. The Account Schema Element Tab defines what accounting dimensions are used in the account identifiers. The possibilities include:
    • Account
    • Activity
    • Business Partner
    • Campaign
    • Location From
    • Location To
    • Org Trx
    • Organization
    • Product
    • Project
    • Sales Region
    • Sub Account
    • User Element 1
    • User Element 2
    • User List 1
    • User List 2
  • GL Category Window - Allows you to define categories to be used in journals. These categories provide a method of optionally grouping and reporting on journals.
  • Document Sequence Window - Defines how document numbers will be sequenced. You may add a prefix or a suffix or change the current number. You can also change the way the numbers are generated. In an implementation, you can use this to match invoice numbers, say, with an existing system so there is no apparent jump on the day the system goes live.
  • Document Type Window - Defines any document to be used in the system. Each document type provides the basis for processing of each document and controls the printed name and document sequence used.

The next step in the implementation is to setup the business partners.

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