by rwalliker » Mon Jan 08, 2018 4:58 pm
All P&L Accounts and certain balance sheet accounts can have their method set when you drill down to the Account level view from an item on the P&L Account or balance sheet Each account has a dropdown with the relevant methods for that account. P&L Methods:
-ENTER Default method allowing entry of amounts on drilldown form -%ACCT( with %SALES,%EMP options) Used to set an account up as a % of an account or account group -ACCRUE To set an account up with accruals and prepayments -PREPAY To set up an accrued sales account based on % sales unbilled -STOCK To set up a COS account with a stock forecasting facility where you enter stock days -STOCK2 To set up a COS account with a stock forecasting facility where you enter stock purchased/invoiced and stock consumed -EMPLOY To set an account up for direct posting of employment costs from the -STAFF forecasting facility. You need to set one on a COS account and one on an OVH or OVE account -PROVISION To set up a Stock, Debtor or other cost provision that does not affect Purchase ledger or cashflow -ACCRUE,EMPLOY,PROVISION,STOCK(2) methods all have the option to be setup as % of ACCT via a tick box at Account level.
-QTYPRICE To setup accounts where you wish to input quantity multiplied by price to calculate balance -PRODUCT Allows you to set-up the account to be one account(or statistical account) multiplied by another account -REPEAT Allows an account to repeat static balances in the forecast eg share capital Balance Sheet Methods:
-LOAN Can be set-up for BLO type accounts. Provides Loan forcasting capability with interest being forecast on a 1INT system account -PYT/CHG A PYT/CHG method can be set on Tax, Dividend and Interest Accounts to set up a related balance sheet account and provide T a/c functionality
-%PBT This can be set on Corporation Tax charge accounts to automatically accrue a tax charge at an effective rate
CONTROL ACCOUNT METHODS These allocate balance sheet accounts needed by the system during the recalc routines which forecast certain balance sheet balances. They are auto allocated if not already set -SLCON Sales Ledger Control This is auto assigned to one type BSL account if not already assigned. -PLCON Purchase Ledger Control This is auto assigned to one type BPL account if not already assigned. -VATCON VATControl This is auto assigned to one type BPL account if not already assigned -STKCON Stock Control - Needs to be allocated to a stock account if using the STOCK Methods so system knows where to post calculated stock balances
METHODS IN DETAIL (WITH CASHFLOW IMPLICATIONS):
1)ACCRUE If you select ACCRUE as the METHOD on cost/overhead accounts on further drilldown you are provided with a T account facility where you can enter say quarterly invoices and monthly P&L charges. The associated accrual/prepayment is then automatically included on a 1ACCR or 1PREP system account on the balance sheet. From a Cashflow point of view the invoices go onto the Purchase Ledger rather than the P&L Account charge For Cash Paid Items that you do not want to appear in Purchase Ledger payments on the balance sheet and cashflow set them as method ACCRUE and leave the Invoice = P&L Account charge. They will then appear separately on cashflow if 'With Accuals' is selected
2)PREPAY Sales Accounts can either be set to ACCRUE or PREPAY By setting the METHOD of a sales account to PREPAY you can drill down to a template where you can accrue sales based on a number of days sales unbilled at the end of the month. The ACCRUE method on Sales works as for cost/overhead accounts Accrued Sales are debited to a system account 1PREPS - 'Prepayments - Accrued Sales' or credited to 1ACCRS - 'Accruals - Sales' on the balance sheet depending on whether a debtor or a creditor. ACCRUE/PREPAY Accounts can also be updated in total on the Accrual/Prepayment reports
3)PYT/CHG(Related Account Method) The METHOD of Corporation Tax and Dividend and Interest Accounts should be set to 'PYT/CHG'. You then need to assign a related balance sheet account for the provision or loan account balance. On drilldown you also get a T account facility for forecasting charges and cashflow payments/receipts. The LOAN method is an alternative for Loans where all interest is posted to a 1INT system account instead of a related interest account
4)PROVISION(Related Account Method) (v7 onwards) Provisions work in a similar way to Corporation Tax and Dividends. If you select PROVISION as the METHOD on cost/overhead accounts on further drilldown you are provided with a facility where you can enter monthly P&L account charges/releases on the P&L (Charge) line. These amounts do not go into Trade Creditors and do not inpact the cashflow. There is also a Payment/Receipt line if you wish to charge say a cost paid out in cash against this provision. It will appear on cashflow as a provision payment. On setting up a PROVISION Account you need to select a balance sheet account for the balance sheet side of the provision to be accounted for - For Debt Provisions choose a Type BSL Account - meaning provision will appear under Trade Debtors in Statutory Balance Sheet - For Stock Provisions choose a Type BST Account - meaning provision will appear under Stock in Statutory Balance Sheet - For Other Cost Provisions choose a Type BWD Account - meaning provision will appear under Other Creditors in Statutory Balance Sheet
5)%PBT Corporation Tax Accounts can be set to %PBT for automatic accrual at an effective tax rate(see below). If under Admin-Setup you select 'Set CT payments as Month10' then when you recalculate the system adjust payment profile to be 9 months and a day after year end.
6)%EMP Used to set an account up as a % of Employment Accounts ie those with METHOD set to EMPLOY or those of TYPE 'OVE' PAYE/NIC accounts (TYPE BPT) should be set as this METHOD to automatically accrue the PAYE/NIC Liability.
7)EMPLOY Used to identify Employment Cost Accounts not rolling up under overheads ie the OVE Type (eg Employment costs in Cost of Sales). They will then be included in %EMP calculations