Process Flows Process Flows Process   Take on Balances HOW TO TAKE ON BALANCES FROM EXISTING BOOKS   When changing accounting packages, there are balances that needs to be carried over from the old package to the new package (Huge ERP). In order to do this you will have to meticulously follow a series of steps and be in possession of the following documents:  Bank Reconciliation Statement  Trial Balance  Age Analysis for both Creditors and Debtors  Stock evaluation. It is vital to do the Take On at either year or month end, never at the middle of the month. The very first entry into Huge ERP must always be the stock take on balance.  You only have one opportunity to do this as the system will not allow you to backdate any transaction after this.  For this Stock take on you need to change the  Credit  account of the  Stock Adjustment Level  GL   link   from  Cost Stock Adjustment  to  Take On Suspense .  After doing the first transaction change the GL link back to the original  Cost Stock Adjustment .  All these transactions must be captured on the last day of the chosen period (either month or year- end). Step 1  – Stock Take On   > Configuration >General Ledger Links >GL Links Setup>Stock Adjustment Level>Amend (Credit-account should be changed from  Cost Stock Adjustment  to T ake On Suspense )  NB!!!!  This account change is only for the very first stock transaction and after this it should be changed back to  Cost Stock Adjustment. Step 2  –   Debtors and Creditors take on . Step 3  – Look at the bank statement, check for post–dated cheques and outstanding deposits to work out your cash balance. Step 4  – Do a General Ledger Journal of the pre-adjustment trial balance of steps 1-4. Step 5  – Capture the full trial balance as of the last day of the period on old books as a General ledger Journal To put all of this into practice here is an example to work on. Let’s assume the client’s books reflect the following items on the last day of the financial period. Stock  Stock Items Units Price Total Item 1 5 R50.00 R250.00 Item2 5 R50.00 R250.00       R500.00 Debtors Debtors 60 30 Current Balance Debtor1 R100.00 -R50.00 R150.00 R200.00 Debtor2 R200.00 R200.00 -R200.00 R200.00         R400.00 Creditors Creditors 60 30 Current Balance Creditor1 -R200.00 -R200.00 R100 -R300.00 Creditor2 R500.00 R500.00 R200 R1200.00         R 900.00   Bank Current Account Opening Balance R1000.00   Outstanding Deposits R200.00   Outstanding Cheques R200.00   Cash Balance R1 000.00       Petty Cash Opening balance R200.00 Trial Balance as at the last day of the period Description Debit Credit Stock R500.00   Debtors Control R400.00   Creditors Control   R900.00 Bank R1000.00   Petty Cash R200.00   Rent Paid R300.00   Stationery R200.00   Vat Control   R100.00 Sales   R500.00 Accumulated Profit   R1100.00   R2600.00 R2600.00 Using the example, steps 1 to 5 will now be explained. Step 1 – Stock Take On Balance. This should be your very first entry if the company you are setting up works with stock. First change the  Credit  account of the  Stock Adjustment Level  GL   link from  Cost Stock Adjustment  to  Take On Suspense . To do this you would follow these steps: >Configuration >General Ledger Links >GL Links Setup>Stock Adjustment level>Amend (Credit-account should be changed from  Cost Stock Adjustment  to  Take On Suspense ) Based on the example above, create the two inventory items. Stock items can be imported from an excel spreadsheet or created individually. Inventory>Configuration>Inventory Setup >Insert. Once the two items on the example are created your inventory setup screen should look like this: Do a stock level adjustment to get your stock to agree with details stipulated on the example above. To do this you have to go to Inventory >Activity >Stock Level Adjustment >Insert   >Save And Close >Close >Process. Now the Stock level has been adjusted to match our example given at the beginning. Now change the  Stock Adjustment Level  GL link  Credit  account back to  Cost Stock Adjustment  by going to Configuration >General Ledger Links >GL setup >Stock Level Adjustment >Amend >select Cost Stock Adjustment for Credit account. To verify that the stock level was successfully done go to the Ledger Module >Reports >Trial Balance >Search. Your Trial Balance should look like this: Step 2 – Debtors and Creditors Take On Balance 2a)  Create new Debtors under Debtors module >Configuration >Debtors setup >Insert Debtors. Save and close when you are finished. Now create debtors journals to make the Debtors match the given example. To Create a debtors journal, select the Debtors module >Activity >Debtors journal >Insert >Save & Close >Process. To create a 60 days balance you have to back date 60 days on your journal, in this case you back date to the 31 st  of December 2009. Process the journal. Repeat the step above but this time back date 30 days (31 January 2010, when using the example given) to work out the 30-days outstanding balance. Process the journal, repeat the step above but this time date it to the 28 February 2010 (to match the current owing as shown in the example)  Repeat the steps above for other Debtors. Based on the example your Debtors Age Analysis should look like this: 2b)  Creditors Module >Configuration >Creditors Setup >Insert Creditor >Save >Close. Create creditors journals to match information on the example. To create a Creditors Journal you go to the creditors module >Activity >Creditors Journals >Insert >Save >Process. To create a 60 days balance you have to date back 60 days, in this case you backdate to the 31 st  December 2009.  Process the journal, repeat the step above. To get the 30 days balance you have to back date 30 days ( 31 January in this case ) Repeat the same step again for the Creditors current balance, Based on the example your creditors age analysis should look as follows:   Step 3 – Bank Balance(s) take on Look at your Bank Statements together with your Bank Reconciliation to isolate any outstanding deposits and cheques. This will be done through a Cashbook, to create a new Cashbook you go to the General ledger >Activity >Cashbooks >Insert.  Process the Cashbook. Now go to GL Module > Reports >Trial Balance   The Trial Balance should look as follows:   Step 4 – General Ledger Journal of Trial Balance of steps 1-3. Now do the General Ledger journal to reverse the above transactions. The journal should look as follows: Process the Journal Your Trial Balance should be at zero on both the Debit and the Credit sides. Step 5 – Full Trial Balance at period end on old books as a General Ledger Journal. Take the Trial Balance and enter it on a General Ledger Journal as illustrated below: After correctly entering and processing the General Ledger Journal, your Trial Balance should look like this and match your Trial Balance from the previous system. Once you see that your Trial Balance is identical to the Trial Balance from the old system then you are done. Flows Sales Flow Process Sales flow with Quote Sales Order Invoice Dispatch stock PDF Document - HSOF Sales Process.pdf Purchase Order Flow Purchase Order flow Purchase Order Receive Stock Delivery Note Supplier Invoice GRV PDF Document - HSOF Purchase Process.pdf Second example of flow Third flow example Job Costing Flow Job Costing Overall Flow     Job Costing overview process Job Costing > Activity > Manage Job     Quote to Job Flow Quote to Job Flow Detail Stock Count to Stock Take Stock Requests Documents Flows Old System Configuration Flow General Ledger Flow Debtors Module Flow         Creditors Flow Line     Inventory Module Flow Report List Flow Job Costing Flow Modules Flow Below is a break down of the flow within each module .   Customer Module