ACCOUNTING

pc/MRP's Accounting package is an easy to use double entry system. pc/MRP's Accounting Package includes a General Ledger, Accounts Payable, Accounts Receivable, and an integrated Check Writing Module. pc/MRP's Reporting Module will provide State Sales Tax Reports, Sales Commission Reports, and Cost of Sales Reports. The Audit option checks every accounting transaction for errors, such as, invalid dates, duplicate transaction numbers, etc.

The Chart of Accts dbf file contains a record for each chart of account. Each record (chart of acct) contains the beginning and ending balance for that chart of acct for each month of the current year.

The Transact dbf file contains a record of each accounting transaction entered into pc/MRP. Each record (transaction) contains a transaction date and the chart of accounts that were debited and credit along with their respective amounts.

When you close (post) a month, pc/MRP prompts for which month, gets all of the transactions for that month and uses them to debit and credit against those accounts and places the final result in the ending balance for each chart of account for that month. It then prints out the financial statements for that month based on those ending balances.

This simple method allows you to close and re-close months up to twelve months back.

14.1.3 Entering Starting Balances into pc/MRP's Accounting Module

After the Chart of Accts has been established, the acct balances must be transferred in by entering accting transactions and not by inserting the dollar amounts directly into the Chart of Accts To enter the starting balances, select: Accounting, GL Transactions, New and then select an "A" type transaction. Debit debit accts and credit credit accts as per following guidelines.

If no previous accounting program has been used:

• Debit all assets such as cash, checking, accounts receivable, equipment, prepaid expenses, etc. by entering A type accounting transactions.
• Credit all liabilities such as taxes payable, accts payable, notes payable, etc. by entering A type accounting transactions.
• If Debits > Credits, credit the difference to Starting Capital
• If Credits > Debits, debit the difference to Starting Capital

If you are switching from another accounting system, you must transfer over the ending balances from the last good close by entering A type transactions with the same date as the last good close. The accounts you would transfer over would be as follows:

• If Mid Period:
  • Transfer all accounts from the trial balance.
• If Start of Period::
  • Transfer all liability, asset, equity accounts from the trial balance.
  • If you want ytd expense and revenue figures on your financial statements, you must also transfer all expense and revenue accounts from the trial balance.
• If Start of Year:
  • Transfer all liability, asset, and equity accounts from the trial balance. Remember to make an entry with the new years date transferring the ytd earnings into starting capital or undistributed retained earnings

  At this point you can close the month to see if the debit and credit totals are equal and match the totals from the last good close of the prior accounting program.

14.1.4 Entering AP (Open Receivers) and AR (Open Invoices) Detail Into pc/MRP

If you wish to enter detail aging information for accounts receivable (open unpaid invoices):

• Make sure auto-accounting has been turned off in the configuration menu, so that you do not double up on debiting accounts receivable
• Temporarily set the inventory adjustment method (option 4 in the settings and utilities) to "S." This will allow you to enter receivers without adjusting inventory. While you are making these entries do not allow other people to use the other modules in pc/MRP. When you are finished making the detail entries return to option 4 and change the method back to the original setting, "A."
• Use the Sales Module to enter each open unpaid invoice as an "On Account and Carry Sales Order". Make sure the invoice date is the date you originally invoiced the customer as this will keep your aging reports correct.
• Once you have entered all open invoices, run an invoice (not sales order) report for all open invoices (Select Invoices, Reports, All Invoices, All Open Invoices). The total should match the $ amount entered as the accounts receivable amount when you entered your original starting balances.
• Once the accounts receivable numbers agree, enter all open (not invoiced) sales orders using the "Order Entry" Option when entering sales orders.

If you wish to enter detail aging information for accounts payable (open unpaid receivers):

Method 1, enter POs and Receivers


• Make sure auto-accounting has been turned off in the configuration menu, so that you do not double up on crediting accounts payable.
• Use the PO Module to enter each open unpaid PO. Make sure the PO date is the date you originally placed the order.
• Use the Receiver Module to enter each open unpaid Receiver. Make sure the Receiver date is the date you received the order as this will keep your aging reports correct.
• Once you have entered all open receivers, run a receiver report for all open receivers (Select Receivers, Reports, All Receivers, All Open Receivers). The total should match the $ amount entered as the accounts payable amount when you entered your original starting balances.
• Once the accounts payable numbers agree, enter all open (not received) purchase orders using pc/MRP's purchase order module

Method 2, Enter accounts payable vouchers without part number detail

• Use pc/MRP's Accounts Payable Module to enter accounts payable vouchers. For each invoice enter an accounts payable voucher. Enter or scroll for the vendors address id code number. If you do not want to record part numbers, select None for part number , 1 for qty received and the total amount of the invoice. Make sure the date received is the date you received the item(s).

• Since this method would automatically make entries into the general ledger, debiting purchases and crediting accts payable, you may have to edit the original trial balance entry to $0.00 for accounts payable. Reclose the current month and make sure your accounts payable account dollar amount is correct.

• When you pay off any of these vouchers, you would enter a general ledger transaction as an E type transaction, answer Y, there is an existing receiver/accounts payable voucher number. Enter the voucher number and allow the program to debit accounts payable and credit checking. pc/MRP will then ask if you wish to print a check, answer Y if you wish pc/MRP to do so.

14.1.5 Automatically Closing all Open Receivers over 60 days old.

Automatically Closing all Open Receivers over 60 days old. If you have been entering receivers into pc/MRP but not using accounting transactions to close the receivers, your accounts payable detail reports would show a large amount of dollars owed. You can close should have a large in a batch mode by doing the following:

• Select Configuration on the top menu bar
• Select About pc/MRP
• Hold down the Control key and hit the L key six times (a command
• window will pop up)
• Enter the following commands in the control window
• Enter USE RECEIVE into the command line
• Click on the OK key
• Enter the following command
• REPLACE ALL COMPLETE WITH "Y" FOR CTOD(DATERECD) < DATE() - 60
• Click on the OK key
• Enter BROWSE into the command line
• Now put a "Y" in the complete field for all remaining receivers that have been paid
• When you have finished closing the receivers that have been paid
• press the ESCAPE key
• Enter USE into the command line
• Click on the Cancel button

Go to the Receiving Report module and print out a receiving report for all open receivers only. The total amount due for open receivers should match the Accounts Payable Chart of Accounts total amount due.

14.1.6 Automatically Closing all Open Invoices over 60 days old.

If you have been entering receivers into pc/MRP but not using accounting transactions to close the invoices you can do so in a batch mode by doing the following:

• Select Configuration on the top menu bar
• Select About pc/MRP
• Hold down the Control key and hit the L key six times (a command
• window will pop up)
• Enter the following commands in the control window
• Enter USE INVOICE into the command line
• Click on the OK key
• Enter the following command
• REPLACE ALL COMPLETE WITH "Y" FOR CTOD(DATESHIP) < DATE() - 60
• Click on the OK key
• Enter BROWSE into the command line
• Now put a "Y" in the complete field for all remaining invoices that have been paid
• When you have finished closing the invoices that have been paid press the ESCAPE key
• Enter USE into the command line
• Click on the Cancel button

Go to the Invoice Report module and print out a receiving report for all open invoices only. The total amount due for open invoices should match the Accounts Receivable Chart of Accounts total amount due.

14.1.7 New (General Ledger Transaction Module)

The General Ledger Module allows you to enter accounting transactions in the general ledger. Once the transactions have been entered you can edit scroll or print the transactions. You can also print out checks for those transactions either singularly or by batch. For additional details see 14.2.1.

The Accounts Payable Module allows you to enter, edit and printout accounts payable vouchers and reports. Since pc/MRP uses receivers as account payable vouchers it is not necessary to use this module for items that are received by receiving. Items that are not received, such as rent, can be entered as an accounts payable voucher. The accounts payable voucher will be assigned the next available receiver number and actually become a receiver record with a "00AP" line item number. If auto accounting is on (in the configuration menu), entering a receiver or accounts payable voucher will automatically make an entry into the general ledger, debiting purchases and crediting accounts payable.

For items received with the receiving module, (Software Arts recommends leaving auto accounting off, make separate), the accountant would not enter the accounts payable module but would enter a general ledger transaction into the general ledger (option 1 on the accounting menu). The accountant would select an "I" type transaction. Entering an "I" type transaction for that receiver will debit the purchasing account and credit the accounts payable account.

The accountant would enter an "E" type transaction into the general ledger when the items on the receiver are paid for. Entering an "E" type transaction for that receiver will debit the accounts payable account and credit the checking account. The receiving record stores the amount due for each line item and the amount paid for each line item. If the amount paid equals or exceeds the amount due, pc/MRP marks the record as complete by placing a "Y" in the receiver record's COMPLETE field.

The Accounts Receivable Module allows you to enter, edit and printout accounts receivable vouchers and reports. Since pc/MRP uses invoices as account receivable vouchers it is not necessary to use this module for items that are invoiced. Items that are not invoiced can be entered as an accounts receivable voucher. The accounts receivable voucher will be assigned the next available invoice number and actually become an invoice record with a "00AR" line item number.

If auto accounting is on (in the configuration menu), entering an invoice or accounts receivable voucher will automatically make an entry into the general ledger, debiting purchases and crediting accounts receivable.

For items that were invoiced with the invoice module, Software Arts recommends leaving auto accounting off (make separate), the accountant would not enter the accounts receivable module but would enter a general ledger transaction into the general ledger (option 1 on the accounting menu). The accountant would select an "O" type transaction. Entering an "O" type transaction for that invoice will debit the accounts receivable account and credit the business income account.

The accountant would enter an "R" type transaction into the general ledger when the items on the invoice are paid for. Entering an "R" type transaction for that invoice will debit the checking account, and credit the accounts receivable account. The invoice record stores the amount due for each line item and the amount paid for each line item. If the amount paid equals or exceeds the amount due, pc/MRP marks the record as complete by placing a "Y" in the invoice record's COMPLETE field.

This module will also print out Billing Statements for every customer that has an open invoice in the invoice file.

The Accounting Report Module provides a multitude of accounting reports. See section 14.5.1 in this manual for a full list of reports and options.

This module will allow you to print, reprint, clear and unclear checks. pc/MRP Versions 6.63C and higher added the option to print a remittance report. See the "Printing Checks" section of this manual for more details on this module.

The Credit Module allows you to issue a credit to a customer to cover returned goods, pricing errors, freight, etc.

The Debit Module allows you to issue a debit to a vendor to cover returned goods, pricing errors, freight, etc.

The Chart of Accounts can support up to 10,000 accounts. The Chart of Accounts must be established prior to using pc/MRP's accounting modules. The chart of accounts provided by pc/MRP may be used as is, or modified to suite the needs of the business. If the chart of accounts are modified, those modifications must also be entered into pc/MRP's Utility Module.

The Tax Code Entity option (versions 6.53A and higher) allows tax code entities to be entered, edited, deleted and undeleted or . Tax code entities such as CA22, TX05 etc. can be entered into the sales tax code entity data base file along with the sales tax rate for that specific state and county. Selecting the option to "Update the Address Book Tax Rates" will automatically update the tax rate of each address with the tax rate for that sales tax entity code tax rate from sales tax code entity data base file. Each sales tax code entity should consist of the two character name of the state plus a 2 digit number such as OR01, OR02, NY23 etc. When ever a sales order is entered, the sales tax rate and the sales tax entity code from the address book will be entered into the sales order and invoice.

The Sales Tax Report in the accounting report module will automatically subtotal on the type of sale (taxable, out of state, service, etc.) and the sales tax entity code.

pc/MRP's posting program begins by making sure the initial debit and credit balances are equal. Posting a month will then automatically retrieve each accounts starting balance for that month and all of the financial transactions recorded during that month. pc/MRP will then calculate the new balances for each account as follows:

Revenue Accounts, RN, RO
Each revenue account's transactions for the month are totaled (debited and credited). The total for each account is stored in that account's ending balance field. After all the transactions have been processed, every revenue account's starting balance field for the next month is zeroed out.

Expense Accounts, EN, EO, EL, ET, EG
Each expense account's transactions for the month are totaled (debited and credited). The total for each account is stored in that account's ending balance field. After all the transactions have been processed, every expense account's starting balance field for the next month is zeroed out.

Asset Accounts, AC, AL
All of the transaction's for each asset account are totaled (debited and credited) against that account's starting balance in the chart of accounts. The total is stored in both the ending balance field for the month being totaled and the next month's starting balance.

Liability Accounts, LC, LL
All of the transaction's for each liability account are totaled (debited and credited) against that account's starting balance in the chart of accounts. The total is stored in both the ending balance field for the month being totaled and the next month's starting balance.

Equity Accounts QN All of the transaction's for each equity account are totaled (debited and credited) against that account's starting balance in the chart of accounts. The total is stored in both the ending balance field for the month being totaled and the next month's starting balance.

YTD Retained Earnings, QR

Once all of the transactions have been processed and each accounts ending balanced has been entered. pc/MRP will calculate the retained earnings for the month by subtracting the ending balances of the expense accounts from the ending balances of the revenue accounts. The retained earnings at the start of the month are copied into the retained earnings at the end of the month. The actual retained earnings for the month are placed in the starting balance of the next month. The reason that the retained earnings for the month are placed in the starting balance of the next month is that the Financial Statement's Trial Balance consists of end of month balance for every account. Since the profits are already reflected in the revenue and expense accounts the YTD retained earnings can not reflect the profits for the month again. If you did so the debits would no longer match the credits for the Trial Balance. Storing the YTD amount in the next months starting balance and the prior months YTD balance in the end of month balance allows the Trial Balance to balance.

Once all the ending balances are totaled they are used to print out the financial statements for the month. The financial statements include:

• Income Statement
• Expense Distribution Report
• Balance Sheet
• YTD Revenue and Expense Report
• Trial Balance
• General Ledger Detail Sheets
• Detailed Transaction Report

After the financial reports have printed out, pc/MRP will prompt you to insert a floppy disk into the a:drive to make a back up copy of the chart of accounts data base file. The back up copies would be necessary if you needed to reclose a month for a prior year or the chart of accounts data base file (chartacc.dbf) became corrupt. pc/MRP versions 6.80T and higher copy the chart of accounts data base file after each close automatically. For example the close of month 08/99 would automatically save a backup copy of the chart of accounts after the close as char0899.DBF.

Notes:


pc/MRP's months are calendar months not fiscal months. Month 12 is always December in pc/MRP.

pc/MRP's Chart of Accounts data base file stores the starting and ending balances for months 1 through 12 for each chart of accounts.

If the last month of your fiscal year is December and you are closing (posting) month 12 (December), you will have the option of initializing month 13 or month 1. Select month 13. This will allow pc/MRP to keep the starting balances of month 1 of the year being closed. As such, month 1 of the year being closed, can be adjusted and re-closed if necessary. Once you are satisfied that all 12 months of the year being closed are correct, reclose (post) month 12 again, print out your final set of financials and this time initialize the starting balances of month 1 of the new year. Transactions for the new year may be entered prior to closing the previous year. However, no month in the new year may be posted until the previous year is posted and closed for the last time.

The option to close and initiate month 13 is only available if month 12 (December) is the last month of your fiscal year.

For example, if you are closing June 97 and June is the last month of your fiscal year, pc/MRP will initialize month 7 (July 97). Since pc/MRP uses the ENDING balances of each month when calculating the year to date amounts the ending balances in month 7 will still be July 96's ending balances. June 97 can be re-closed as many times as you wish without any problems as long as you do not close July 96 (month 7) or higher. You can not close July 97 or higher until you are positive the June 97 close is final. However you can continue entering accounting transactions for July 97 and higher into pc/MRP's general ledger. Once you are satisfied with the June 97 close you can then go into the new year and close July 97.

If you had to re-close June 97 after you had closed July 97 you could do so by re-storing the June 97 chart of accounts close. Simply place the CHAR0697 floppy disk in drive a: and copy the char0697.dbf file into the pcmrpw directory by entering


COPY A:CHAR0697.DBF C:\PCMRPW\CHARTACC.DBF /V.  


You would could then make your adjustments, re-close June 97, and then re-close July 97.

Allows budget figures to be entered and or edited for each month of each chart of accounts. The budget figures and their monthly and yearly variance will be displayed on the Monthly YTD Reports.

Checks all accounting transactions for incorrect transaction dates, duplicate transaction numbers (can cause transaction report to go into an endless loop on that transaction number), blank transaction numbers, and duplicate blank transaction numbers ( can cause transaction report to print out only lines and no transactions). The audit transaction report is completely benign, it only recommends changes but does not change or mark any transaction for deletion.

Initiating this module will zero out the balance due amounts in the address book. The open invoices will then be used to re-calculate the balance due amounts and enter them into the address book. pc/MRP offers the option of using all open or all open posted invoices only. We recommend selecting all open invoices. If an invoice contains a blank account number or an account number that does not exist in the address book, an error message stating xxxx not found will pop up for a set amount of time. pc/MRP will return to the main menu leaving the remaining address balances at 0. Since the error message remains on the screen for a set amount of time, it is recommended you watch your screen while it processes the invoices. If the error message appears, record the account number not found, Go to invoices, select edit, select scroll on address account number, enter the address account number that does not exist in the address book, change the invoice account number to an existing account number that does exist in the address book, and rerun this option again until it processes all invoices without an error message.