Financial Management under Navision-2009 R2

CHART OF ACCOUNT

The core of a company is the chart of accounts, that is, the list of the G/L accounts to which all G/L entries are posted. You use the Chart of Accounts window to enter and view your G/L accounts and account balances. You create the chart of accounts in the same way as you create new G/L accounts. You can set up new G/L accounts in the Chart of Accounts window or in the G/L Account Card window

CREATING A “CHART OF ACCOUNT”:-

GO TO FINANCIAL MANAGEMENT→GENERAL LEDGER→CHART OF ACCOUNTS

1.  Click ACCOUNT→CARD. Alternatively, you can press SHIFT + F5. The G/L Account Card window appears

General Tab

1-  No: - Enter the number of the G/L Account you are setting up.

2- Name:- Enter an account name of 30 characters or less

3-  Income/balance: - Specify whether the account is an income or balance sheet account.

4-  Debit/credit: - This field allows the user to determine the normal type of transactions that are made to this account. It does not restrict the type of transactions, but only enhance the way of usability

5- totalling:- Determines which accounts go into a Total or an End-Total entry

6- balance:- This is a auto field, shows the balance of under this particular account

7- ACCOUNT TYPE: - This field identifies the purpose of the account. The following are the options:-

*        Posting Used to accumulate transactions

*        Heading Used for descriptive purposes only

*       Total Used to total a range of accounts. The user determines the ranges for these accounts. These accounts can be useful for totalling groups of accounts that are not in the same classification (Gross Income).

·         Begin-Total and End-Total The Begin-Total account marks the beginning of an account range and the End-Total account marks the end of the range. The range can be calculated or entered manually.

Posting Tab

The Posting tab you contains the information the program uses for recording the

G/L and VAT transactions

1-  Gen. Posting type:- Defines whether the account is used only in connection

              With a Sale or Purchase transaction or with both kinds of transactions.

2-  Gen buss posting group:- The default general business posting group for the

              Account. This indicates whom you sell to or buy from. The program uses this code to find the  

              G/L accounts to which the program posts sales, purchases, and discount amounts,

3-  Gen. Product posting group:- The default general product posting group for the

              Account. This indicates which type of item you sell or purchase

4-  Vat Bus posting group:- The default VAT business posting group for the account.

             The program uses this code with the VAT Prod. Posting Group and Gen. Posting Type   

              Fields to determine VAT % and VAT calculation type

5-  Vat prod posting group: - The default VAT product posting group for the account.

The program uses this code together with the VAT Bus

After you have attached the posting type and all the posting group codes to a G/L account, these codes are automatically inserted in a journal, sales, or purchase line when you select the G/L account.

Now, look at the buttons on the “chart of account” tab:-

The Account Button

Each account card has an Account button. From the G/L Account Card window, click the Account button to view the following functions:

Function                                     Definition

List                                              Displays a list of all accounts. Note, this is not the same

                                                    As the chart of accounts since it does not include and

                                                    Balance or amount information.

Ledger Entries                             Displays all ledger entries for the account.

Comments                                   Displays or enter any additional comments relating to the  

                                  

Dimensions                                 Display or enter default dimensions for the account.

Extended Texts                           Display or enter extended text for the account.

The Balance Button

The Balance button is used to show information about the balances and transaction amounts for the account. From the G/L Account Card window, click the Balance button to view the following functions:

FUNCTION	DEFINATION
G/L Account Balance	Displays the balance or net change for the G/L account over time
G/L Balance	Displays the balance or net change for all G/L accounts for a specific time period
G/L Balance by Dimensions	Displays balance or net change information for all accounts. You can choose the information shown in columns and lines from G/L account or period,

Journals and Batches

Overview of Journals and Batches

General journals enable you to enter data into general ledger accounts and other accounts; for instance, customer accounts, vendor accounts, and bank accounts. The journal entry system has three layers: journal templates, journal batches, and journal lines.

Journal Templates

Journals are used for different types or groups of entries, such as purchases, payments, sales, and receivables. Each journal type is set up with its own journal template. Journal templates provide the basic journal structure where you can specify default information for all batches created using the template.

Journal Batches

Journal Batches are created based on the journal templates. All journal batches created from a specific template have the same structure, default settings, and information defined in the template. However, as these settings are defaults, it is possible to change them for a specific journal batch. Batches are typically used to separate one user’s entries from another. For example, USER1 and USER2 both work on general journal entries. USER1 typically makes entries and posts them at a later time when they are approved. In order to keep USER2 entries from becoming mixed with USER1 entries, separate batches can be assigned to the two users.

Journal Lines

Journal lines are the journal entries that you want to post. This information entered in the journal lines includes the account number, posting date, and amount of the journal.

HOW TO MANAGE PAYABLE S UNDER FINANCIAL MANAGEMENT

Purchase Journal Window

You use the Purchase Journal window to post purchase invoices. A purchase journal is a type of general journal, so you can use it to post transactions to G/L, bank, customer, vendor and fixed assets accounts. In a purchase journal, you enter the relevant information for the transaction, such as the posting date, amount and the accounts you want to post to.

STEP‘S:-

1.  GO TO PAYABLES UNDER FINANCIAL MANAGEMENT MODULE.

2.  FILL POSTING DATE.

3.  SELECT DOCUMENT TYPE FROM LIST

*         Here you can enter the DOCUMENT NO. You can use one of the following methods:

*         If you have set up a default  number series, press Enter to have the program fill in this field with the next number in the series. You can also manually enter a unique DOCUMENT number.

*        . SELECT PARTY TYPE FROM LIST WHICH YOU WANT.

*         .SELECT PARTY CODE FROM LIST.

*         .SELECT A/C TYPE GL ACCOUNT.

*         .CHOOSE A/C NO FROM LIST.

Select the number of the account that the entry on the journal line will be posted to. For this click the Assist Button in the field. The list that appears depends on the account type you have chosen in the Account Type field: G/L accounts, bank accounts, customer, vendor or fixed asset accounts.

*         BALANCING ACCOUNT TYPE: - Here you can select the number of the G/L, customer, vendor or bank account to which a balancing entry for the journal line will posted (for example, a cash account for cash purchases).  For this click the Assist Button in the field. The contents of the Account Type field determine which account numbers are shown.

*         Bal. Account NO. :-Enter here the code for the balancing account type that should be used in this journal line. For this click the Assist Button in the field. Your choice will decide which accounts you can choose in the Bal. Account No. field.

TO POST Press F11 for post the entry.

Payment Journal Window
You use the Payment Journal window to register payments to vendors. A payment journal is a type of general journal, so you can use it to post transactions to G/L, bank, customer, vendor and fixed assets accounts. In a payment journal, you enter the relevant information for the transaction, such as the posting date, amount and the accounts you want to post to.
Same as Purchase Journal Window.






Purchase Invoice Window
You use the Purchase Invoice window to enter all the relevant information when you create purchase invoices.
On the four tabs you enter general information about the buy-from vendor, pay-to vendor, shipment and currency. Most information about the vendor is copied from the vendor card when you enter the vendor number on the purchase invoice. On the lines you enter information about the items to be invoiced.
When you have finished filling in the purchase invoice, you can post it.





















Credit memo:-
You use the Purchase Credit Memo window to enter all the relevant information when you create purchase credit memos.
You usually receive purchase credit memos when you return items to a vendor, but you can also receive them as compensation - a purchase allowance. In addition, you can use a purchase memo to correct an incorrect purchase invoice

To Create Purchase Credit Memos:

1.      Open the Purchase Credit Memo window.

2.      Press F3 to create a blank credit memo.

3.      Fill in the No. field.

4.      In the Buy-from Vendor No. field, enter the number of the vendor to which you returned the items.

5.      If you want to post the credit memo to a different vendor than the one specified on the General tab, enter the number of that vendor in the Pay-to Vendor No. field on the Invoicing tab.

6.      In the Posting Date field, enter the posting date.

7.      In the Vendor Cr. Memo No. field, enter the number that the vendor uses for the credit memo you are creating.

8.      If the purchase credit memo will be applied to an invoice that has already been posted, fill in the Applies-to Doc. Type field and the Applies-to Doc. No. field on the Application tab.

9.      On the credit memo lines, enter information about the items that you have returned. You can either fill in the lines manually, or, if you want to copy information from other documents, you have two options for filling in the lines automatically:

·         You can use the FUNCTIONàCopy Document batch job to copy an existing document to the credit memo. Use this function to copy the entire document. It can be either a posted document or a document that is not yet posted.

·         You can use the FUNCTIONàGet Posted Document Lines to reverse function to copy one or more posted document lines from one or more posted documents to the new credit memo document.  This function always exactly reverses the costs from the posted document line, regardless of whether exact cost reversing is set up as mandatory in the purchases and payables setup.
If the line has item tracking, the program cannot provide exact cost reversing, because the reservation is not available from the purchase credit memo document. You can use the purchase return order for exact cost reversing of an item-tracked line.

10.  If the credit memo will be applied to a specific posted invoice, you can open that invoice in the Posted Purchase Invoices window.

When you have finished filling in the purchase credit memo, you can post it.

Bank Payment Voucher Window:-

You use the Bank Payment Voucher for the bank payment entry. You need to enter basic information about the transaction, such as posting date and amount.

1.  GO TO BANK PAYMENT VOUCHAR OPTION UNDER PAYABLE.

2.  FILL POSTING DATE.

3.  SELECT DOCUMENT TYPE FROM LIST.

*        No. Here you can enter the DOCUMENT number. You can use one of the following methods:

*         If you have set up a default  number series, press Enter to have the program fill in this field with the next number in the series.

*         You can also manually enter a unique DOCUMENT number.

*         SELECT PARTY TYPE FROM LIST WHICH YOU WANT.

*         SELECT PARTY CODE FROM LIST.

*         SELECT A/C TYPE GL ACCOUNT.

*         CHOOSE A/C NO FROM LIST.

*         FILL AMOUNT USE POSITIVE FOR DEBIT OR NEGATIVE FOR CREDIT.

        BALANCING ACCOUNT TYPE:-

*         Here you can select the number of the G/L, customer, vendor or bank account to which a balancing entry for the journal line will posted (for example, a cash account for cash purchases).

*         For this click the Assist Button in the field. The contents of the Account Type field determine which account numbers are shown.

        Bal. Account Type

*         Enter here the code for the balancing account type that should be used in this journal line.

·         For this click the Assist Button in the field. Your choice will decide which accounts you can choose in the Bal. Account No. field.

·         POST:-

·         Press F11 for post the entry.

HOW TO MANAGE RECEIVEBLE’ S UNDER FINANCIAL MANAGEMENT

CASH RECIEPT Journal

You use the Cash Receipt Journal window to register payments from customers. A cash receipt journal is a type of general journal, so you can use it to post transactions to G/L, bank, customer, vendor and fixed assets accounts. In a cash receipt journal, you enter the relevant information for the transaction, such as the posting date, amount and the accounts you want to post to. The information you enter in a journal is temporary and can be changed as long as it is in the journal.
After you post a journal, the journal will be empty and the transactions will be posted to individual accounts. You can view the results of posting a journal in the ledger entry windows and register windows. Posting with a cash receipt journal always creates entries on G/L accounts.

 GO TO FINANCIAL MANAGEMENT -> RECEIVABLES -> CASH RECEIPT JOURNAL MODULE.

To Fill in and Post a Cash Receipts Journal:

1.      Open the Cash Receipt Journal window.

2.      Select the proper Batch.

3.      Enter Posting Date.

4.      Select Payment as the Document Type.

5.      The Document No. field is filled in by the No. Series assigned to the Batch.

6.      Use the External Document No. field to store an identifier such as the customer's check number.

7.      Select Customer as the Account Type.

8.      Select the proper Customer Account No.

9.      Do one of the following:

*         To record a full invoice payment, in the Applies-to Doc. No. field, click the Assist Button. From the Apply Customer Entries window, select the line to which payment should be applied; click OK.

*        To record a partial invoice payment, in the Amount field of the Cash Receipt Journal, enter the amount you wish to apply as a negative number. In the Applies-to Doc. No. field, click the Lookup, select the line, and click OK.

*         If you are recording full payment for multiple invoices, click the Functions button, Apply Entries. On each line to which the payment is to be applied, press F9. When you have marked the relevant lines, click OK.

*         If you are recording a partial payment for multiple invoices, click the Functions button, Apply Entries. On each line to which the payment is to be applied, press F9, and then press F2 to enable the edit function. Edit the Amount to Apply field, enter the partial amount as a positive number, and then click OK.

11.  In the Balancing Account Type field, select G/L Account for cash payments and Bank Account for other payments.

12.  In the Balancing Account No. field, click the Assist Button and select the cash account for cash payments, or the relevant bank account for other payments.

13.  Click the Posting button, Post.

TO POST Press F11 for post the entry.

Regards
vimal
Techno-Functional consultant