OpenPro Application Guide - Accounting Basics and Class Codes Setup
Accounting Basics and Class Codes Setup
This is the document guide for accounting basics and accounting processes using the Classes setup in OpenPro.
The idea of Classes is to make it easy for the users of the system. Example an inventory control clerk only needs to know about how much inventory and where the inventory is located, not what GL Account is required to process inventory transactions.
But if classes are not setup it will cause many general journal entries to fix the incorrect classes.
This process will go through the whole process of using classes and the accounting that is done in the system during those transactions processes.
It will be part of the basic process flow.
Setup inventory, create a po, receive from the po, voucher the inventory, pay for that inventory, create a sales order, ship out the inventory, invoice the inventory.
This will also show some basic setup and how they effect the accounting in GL.
Basic Process Flow
This section shows you the overall OpenPro system data flow and integration between systems.
Assume that the products are setup into inventory.
Here in inventory item you setup the default class.
The inventory class is setup as follows:
The transaction (on the next page) uses Inventory Account and Purchase Cost Account.
If the purchase order was setup as a DROPSHIP purchase order the account numbers would be Drop Ship account and Purchase Cost Account.
Create a purchase order for inventory (no accounting GL transactions).
Receive inventory from vendor.
This transaction puts the inventory into the asset account on the balance sheet, and generates a liability of the inventory that came in and you have not receive and invoice.
When you receive the 5 units, it generates gl transaction automatically.
This is the purchase order entry screen, and the location and account numbers are based upon the DROP SHIP Flag.
The DROPSHIP purchase order will receive the inventory into a location called DROPSHIP. This location must be setup as a company in rules setup/maintenance/company to be properly recorded.
If during the receiving process you have in the business rules that payable transactions can be placed during receiving, this is what pops up during receiving.
And this will take the inventory out of the Purchases account and move them into the Account payable liability account setup on the vendor table.
The following GL transactions have been generated from the accounts payable transaction and the purchase order receiver.
When the check is processed and paid for, the following accounts will be affected.
Select the invoices to pay during payables processing.
Select the checking account used for these checks.
Print the checks.
Then post the checks.
These accounts were selected because of the AP class setup and the vendor setup.
Here is the vendor setup.
This is the AP account used during the Voucher process.
And this is the class used during the Voucher Process.
Here is the detail of the AP Class process.
This shows the default AP Expense account.
Now let's go through the sales order process.
First enter in an Quote, generate a sales order from the quote, Ship out the sales order, invoice the sales order.
Generate a quote and Place Order.
Sales order shows up in shipping and they will record the shipment.
The order is shipped out and tracking information record, this is when inventory is issued out.
Before this when sales orders are entered in the inventory is Allocated, but not issued.
Here is the finalized shipping process.
And the GL transactions for reducing inventory and increasing cost of goods sold.
Then during the invoicing process the sales is posted.
The following GL transaction is created.
Now it depends on if you have taxes setup, and other items you may see tax account number in this posting as well. Also it depends on if you have sales by customer flag setup in business rules.
This Sales account comes from either Inventory Class or AR Class. The receivables account and Freight Account comes from AR Class.
Here is the customer setup screen.
Showing the AR class used during processing the order.
This also shows many defaults used during order processing, including shipping, terms, pricing, etc.
This shows you the history for this customer.
And the drill down the the customer summary information.
Here is what the AR Class looks like.
You can see the Sales Account used and the Freight account and Accounts Receivable account.
Based upon this flag in the business rules the Sales are broken up by customer class or if this is not checked the sales are by Item Class.
When the customer pays for the outstanding invoice, during the cash receipt process it will move it from AR to cash accounts.
Here they put in how the money was received, the reference number and check, put in the amount received.
Check off the invoice paid for, and select the cash account where the money is going into.
And then click ADD.
This created the following transactions in GL.
These account came from AR customer class information.
this information came from the AR customer classes setup.
[Last Review Date August 2017]