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1/13Version 200/02/01How do I Use Code Maintenance to Control the Behaviour of the System? HYPERLINK \l "Intro" Introduction.HYPERLINK \l "Customer"Customer and Supplier Codes. HYPERLINK \l "Product" Product/Inventory Codes. HYPERLINK \l "Currency" General Ledger Codes.Currency Codes. HYPERLINK \l "Tax" Tax Codes.Introduction: When a new Company is created it is accompanied by a standard set of Analytical Codes for use throughout the system. Before going on to set up your Master Records for Customers, Suppliers, Product/Inventory and so on, you need to review these Codes, update and change them as necessary, in order to reflect your specific requirements for this company. Most of the Codes are optional, but if you want to gain maximum reporting and analysis benefit from the system, you should allocate them to all your Customers, Suppliers and Inventory master records using the Drop Downs provided. These Codes are listed here;2/13Customer and Supplier Codes: The first set of Codes relates to those which you might use to categorise your Customers and Suppliers for reporting and analysis purposes. Most of the maintenance programs relating to these Codes are very similar in operation. As a result, after dealing with the topic of “Areas”, further maintenance programs will only be described when they differ from the standard operation detailed hereunder in regard to Areas. Area Codes are used on both Customer and Supplier records to classify them according to their primary location. They can be used, for example, to produce Sales Analysis by Area. To add a new Area Code and Description, click on “Add New Area” on the screen shown above. This will bring up the following window; You can then go on to modify the entries in your Area list by clicking on the Edit Button beside each;2.2Credit Terms Codes, which are used on both Customer and Supplier records, has a number of additional parameters;3/13The first of these specifies the number of days Credit Days which a particular Supplier allows before payment becomes overdue, or in the case of Customers, the number of Credit Days you are extending to different customers before the Invoice becomes overdue. The second indicates that the count of Credit Days begins immediately after the Invoice Date or, alternatively, commences on the first day of the next calendar month after the month in which the Invoice was dated.2.3Customer Groups allow you to categorise your Customers for Sales Analysis Reporting like this, for example;2.4Customer Referrals allow you to record, for marketing purposes, the source by which you acquired this customer. Some examples are shown in the screen below. However, if you have no use for this particular code, then you can use it for an entirely different purpose if you wish. 2.5Delivery Routes will be used on each Customer’s master record in the “Delivery Routes” field and indicate that the appropriate delivery route for that Customer.4/13 2.6Payment Methods inform the Supplier Payment run as to how this Supplier should be paid;2.7Price Categories Each Product/Inventory Master record can accommodate up to eight different Sale Prices. These are the Descriptions (nos. 1 to 8) you may wish to allocate to each of the price categories. The Prices themselves will be on each individual Product/Inventory Master record. 2.8Priority Codes allow you to assign priorities to your important Customers and Suppliers for fulfilment of Orders, Shipments, etc.2.9Regions allow you to classify Customers according to Regions as well as Areas;5/132.10Requesters also known as “Requisitioners” are used in the Purchasing System to nominate persons (and their email addresses) within the organisation who can place Orders for Goods (to be subsequently approved) and who receive such goods when delivered; 2.11Ship Via is used on both the Customer’s and Supplier’s master records to indicate a preferred transport method and supplier.2.12Supplier Group codes are used on the Supplier Master record to classify Suppliers into various groups as defined in this table.Product/Inventory Codes: The next group of Codes “Items” relate to the Inventory Management aspect of the system. An “Item” is a Product or Service in this system. Products and Services can be either “Stock” (which will use the full features of the Inventory Management system) or “Non-Stock” (which will only use the Pricing and Costing parts of the Inventory Management system). Each Product or Service is identified by an Item Code which can be alpha-numeric, upper and Lower case or just a number.3.1.Item Groups are used to classify Items into major categories which can subsequently be used to produce Sales Analyses by Product Group and also drive Sales Reps.’ Commission Calculations..6/133.2.Item Locations: These designate the main areas (physical locations) where Items are stored;If the “On Hand” tick box here is left unchecked, then running Stock Balances will not be maintained for Items stored in this particular location.3.3Item Sub-Groups: The main Item Groups can be sub-divided into sub-groups for Analysis purposes, as in this example where the Item Group “COM” is broken down into individual sub-groups.The Item Code itself will identify the Product in full – such as “Microsoft 4 Surface Laptop, 17”, 360Gigabytes, Black. 7/133.4Item Sub-Locations are specific locations or areas in your warehouses and storage locations when items are to be physically found for subsequent picking and despatch (or for receipting);4. General Ledger Codes: Your Company comes with a pre-packaged comprehensive standard set of General Ledger Codes which most users find more than adequately meets the need of their business. However, you have the option to choose your own GL coding system, or, should you choose the Default Coding System, you have the option to add to, or remove from, the Standard Codes provided, and indeed change their Descriptions to meet your own exact requirements. It is strongly recommended that you review these Codes in order to remove unnecessary inapplicable Codes and to add other GL Codes which your particular business might require. Removal of unnecessary codes will make the system much easier to operate as it reduces clutter. Remember, you can always add Codes back, very easily later on. It’s highly recommended that you review the “How do I Setup and Maintain General Ledger Accounts” article and use it in conjunction with this article.There is a hierarchy in the GL Code structure. At the top we have GL Categories and at the next level, there are GL Sub-Categories. Every basic GL Code has a GL Sub-Category and a GL Category attached to it and remembered by the system. Consequently, when using GL Codes throughout the system there is no need to also quote the GL Category and GL Sub-Category. You can change the Category and/or Sub-Category that a GL Code belongs to at any time.The structure of the GL Coding system has a significant bearing on the layout and completeness of your Income and Expenditure Statements, Trial Balance, Balance Sheet and other financial reports. Every GL Code (without exception) is attached to a higher level “GL Sub-Category” which in turn is attached to an even higher level “GL Category”. The GL Categories are the major headings in your reports such as “Income”, “Revenue”, “Direct Costs”, “Overhead Costs”, “Expenses” and so on. The GL-Sub Categories, as you would expect, are the sub-headings within the Categories such as “Home Sales”, “Exports”, “Spares”, etc. (within the “Income” Category) and, for example, “Rent & Rates”, “Computer Costs”, Finance Costs” under “Overhead Costs”. The GL Codes then, are the lowest level of reporting line (although you can also drill down to the transaction level detail from the GL Codes). You can view this entire structure in the Report entitled “Chart of Accounts Layout”.8/134.1GL Categories: You are supplied with 11 pre-existing GL Categories, numbered 1 to 11 as Alphabetic Codes, which you cannot change or delete. You can, however, edit them and change their meaning. And you can add to them if you wish, as in this example below;When adding a new GL Category you must also add a Category Type which determines whether GL Codes belonging to this GL Category appear in Revenue or Assets reports. When you Edit a GL Category you can change the GL Category Description and its associated Category Type. You can also determine its place in the Chart of Accounts by allocating a “Sort Order Code”. The GL Categories will appear in ascending numerical order in the Chart of Accounts starting with the number 1. If you decide to change a GL Category’s position by changing its Sort Order Code or you add a new GL Category with a new Sort Order Code then, on “Save”, by ticking the box “Re-Sort sort order”, the sequence will be re-ordered. In the example below, “Operating Income” will be the first line on your P & L Reports followed by “Cost of Sales” and “Direct Costs”. 9/134.2GL Sub-Categories: As with GL Categories the system comes equipped with a standard set of GL Sub-Categories which you can Add to or Modify as you wish. Each also has a P & L Sort Order Code – but in this instance – these Codes determine the sequence of their appearance within a GL Category. Maintenance is similar to that of GL Categories with the ability to re-sequence the Report or Chart of Accounts using the Sort Order Codes. The “Non-Cash Item”, if ticked will cause all GL Codes with that particular GL Sub-Category as a parent to be excluded from Cash Forecasting.There is a more detailed explanation of the role of GL Categories, GL Sub-Categories and GL Codes in the preparation of Financial Reports in the Article entitled; “How do I Modify or Re-design the Layout of the P & L Reports”.4.3GL Groups: GL Groups are used when setting up new GL Codes to collect together groups of GL Codes. They do not feature in the hierarchy of the GL Coding Structure. They are optional, but serve as a way of enquiring and reporting on GL Codes which fall into various collections of Revenue, Cost Accounts or Balance Sheet Accounts. For example you can group all Insurance costs, or Legal Costs, and so on. You can use these to refine Enquiries and Reports as in the example below;10/13Maintenance of GL Groups is the same as that for Areas, Regions, and so on;4.4System Accounts: These are a set of GL Accounts set aside solely for use by the system and whose identity is known to the various processes which use these accounts. For example, the Debtors & Creditors Control Accounts, Purchases and Sales Tax Accounts, Currency Gains & Losses, and so on. The system identifies them by their “Account Type” below, which you cannot change.However, you can change the GL Code to which these Account Types are pointing and use for Posting purposes. For example, you may be using a completely different Chart of Accounts from the default one provided with this system and therefore will want to use your own Codes here to identify these System Accounts.11/13There are some limited facilities for adding new Control Accounts. For example, you may wish to segregate your Debtors and/or Creditors into groups with different Control Accounts (which you will record on the Customer’s and Supplier’s Master records. 5.Currency Codes: The system facilitates multi-currency operation with as many currencies as you require against a single Base Currency (i.e. the “Home” Currency in which you operate your General Ledger, Tax Reports, etc.). Currencies and their Rates of Exchange are set up and maintained in this Table; Only one Currency can be nominated as the Base Currency and the Rates of Exchange are expressed as 1 Unit of Base Currency = X Units of Foreign Currency. In periods of high Exchange Rate volatility, Currency Rates should be revised and updated frequently in order to yield the most accurate reflection of your Trading and Balance Sheet.You can add new Currencies by clicking on the button “Add New Currency”. Or you can amend an existing Currency’s details by clicking on the “Edit” field next to its entry in the table;The Web Site will provide assistance on Symbols, Exchange Rates, plete information regarding the operation of multi-currency is to be found in the Article “How do the Multi-Currency Features of the System Work?”.Tax Codes: The System facilitates the capture of VAT related data throughout, together with the production of all the required statutory reporting, and supporting information, in regard to current VAT legislation. Included are facilities for the recording and reporting of VAT on both the “Invoice” basis and the “Cash” basis according to the rules in force at the time.Again, you will find that a pre-set standard table of Tax Codes, Tax Rates and associated Rules will have already been provided with your new Company. It is advisable to review these in detail – as the ultimate responsibility for the accuracy of your VAT Returns lies with you – the user. Default Tax Codes are allocated to Inventory Products, Customers and Suppliers – but the proper Tax Code is contained on the transaction line (i.e. Sales Invoice line, Purchase Invoice line, etc.) and these default Tax Codes and Rates can be over-ridden during transaction entry.12/13 When you add a new Tax Code or Edit an existing one, the following window is presented;Here you can set up and maintain your VAT Codes and their associated % Tax Rates to be applied to your Sales transactions or which have been applied to your Purchase transactions – along with a Description of the Tax Rate. The “ECP” and “ECS” check boxes are used to identify (for your Tax Return) the EU Purchases and EU Sales transactions as opposed to local transactions. The “Standard” check box indicates whether or not this is the Standard Rate or one of the lower Rates – while the “Withholding” check box triggers a different treatment of the transaction (For full and complete information on the workings of the VAT system please refer to the detailed Article entitled “How does the System Facilitate VAT Management (UK & Ireland)?”).Finally, the “Exclude” check box allows you to exclude certain Transactions from the VAT Return entirely (see 5. below) although this function is adequately catered for by the use of the “NT” Code in the standard pre-supplied VAT Table.13/13The associated VAT General Ledger Control Account Codes are nominated in the “System Accounts”. Go to Setup Codes Maintenance General System Accounts. Most likely you will find it already populated with the appropriate Sales and Purchase VAT General Ledger Control Account Codes (as part of the Company Template which was used to set up your Company in the first place, along with the standard template set of General Ledger Codes and Accounts). However, if you wish to change these GL Accounts, you may do so here – in conjunction with the equivalent new Accounts you have set up in the General Ledger Master Table; ................
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