Compiere Training

1. Compiere Training Accounting, Tax Performance Analysis Accounting

2. Agenda Show Accounting Tools > PreferenceRole Security • Performance Analysis • Information Dimensions • Calendar & Periods • Accounting Schema • Charge • Tax • Accounting Details Accounting

3. Performance Analysis Accounting

4. Terminology Accounting

5. Information Dimensions • Organization • Owning (balance sheet) • Transacting (executing org or service center) • Natural Account • Product • Business Partner • Project • Marketing Campaign • Location (Warehouse, Business Partner) • From - To • Activity (Activity Based Costing) • User Defined (2) Accounting Schema Elements (Segments) Accounting

6. Principles • Accounting entry at the lowest level • (Accounting Fact) • Any Accumulation • Trees for Summary & Navigation • Element Values derived from Transaction • Directly (entered) • Derived • Differentiate Document from Accounting Consequence • Multiple Accounting Schema Accounting

7. Dimensions Tree Conversion Accounting

8. Tree Characteristics • You can post only to Leaf Level • You can report on Summary and Leaf Level • You can change Structure any time • “HQ Operations” • Extra Leaf / Summary required • E.g. Differentiate “Direct Sales” level transactions from individual Stores • Different Modeling Options • Dependent what you want to report on Accounting

9. Dimension Tree Alternative Accounting

10. Calendar & Period • Two Dates • Document Date • Accounting Date • Calendar & Period only for control & reporting purposes • No End Period processes • Period can be automatically opened • You cannot post in closed periods – Change accounting date (or re-open) • Controlling Calendar defined on Client Level Accounting

11. Account Element • Type • Natural Account • User defined • One (or more) Trees for Reporting • Values • Account Type & Sign • Posting Type (Actual – Budget – Stat) Accounting

12. Accounting Schema • From “traditional CCC” to • Chart-Of-Account (Natural Account) • Currency • (Not Calendar) • Costing Method • GAAP* • Selection of Elements Accounting

13. Document AccountingConsequence AccountingConsequence AccountingConsequence Multiple Accounting Schema • Parallel Accounting of Documents • No need to derive one from the other • Differentiate between • Legal/Tax Accounting • Multiple Countries • Management Accounting • Currency Translation not correct Accounting

14. Account Schema Elements • Information Dimensions • Balanced • Postings to this Element must be balanced • E.g. Organization • Mandatory • With every transaction you have to define • E.g. Organization, Natural Account • Default Value Accounting

15. Accounting Schema Changes • Change Structure any time • Add/Change/Delete Elements • Change Values any time • Overwrites old ones! • Change Hierarchy any time • Reporting Hierarchy of Elements • Org, Account, BPartner, Product, Project, etc. • Merge Element Entries any time • Organization, BPartner (User), Product Accounting

16. Accounting Defaults • Default Hierarchy • Accounting Schema • BP Group, Product Category, .. • Business Partner, Product, .. • Account Combination • Combination of Element Values • Org – Natural Account – ... • Posting adds Document Context Values to Account Defaults • E.g. Invoice automatically adds Business Partner Accounting

17. Account Combination Default Account Org Account Project BPartner Product 02 1600 Building _ _ Document Posted Account (dynamically created) Org Account Project BPartner Product 01 1600 Building Joe Flowers Accounting

18. Posting • Posted in Background or Explicit • When document is processed • Reset Accounting • For specific/all Document Table • Allows to correct wrong default accounts • Resubmit Posting • After correcting cause for Posting error • E.g. Open Period Accounting

19. Account Info (View) • View Accounting • For Document • For Enabled Account Element Value • Optional Account Date Range • Optional Sorting • Grouping Accounting

20. GL Category • Traditional GL Reporting • Sources • Derived from Document Type • Manually Entered Accounting

21. Document Sequence • Unique numbering of documents • Gap-less • Optional Prefix/Suffix • Assigned via Document Type Accounting

22. Charge • The Link (“Alias”) between • (Multiple) Chart-of-Accounts • Natural Account (Account Combination) • Attributes • Option to distinguish Dr/Cr Posting • Tax Category & Tax Inclusive Handling* • Creation • Manually • Generate Charges from Natural Account Accounting

23. Tax Overview Accounting

24. Tax • Tax Category • Link to Product (Commodity Code) • API* for Tax Vendors • Commodity – Invoice/Ship – From/To • Maintain Tax Rate • Invoice From/To • For simple tax situations Accounting

25. Multiple Tax Rates • More than one tax rate on the same net amount • Line 100.00 • Tax1 (5%) 5.00 • Tax2 (4%) 4.00 • If “Tax on Tax” calculate rate as if from net • Enter % for Summary Level • Summary (9%) 9.00 • Summary Level used while entering data • Correct Taxes calculated when Processed Accounting

26. Tax Issues • Tax Calculation • On Header • Total Amount per Tax * Rate • Tax Inclusive • The Amount includes all taxes • Define in • Price List • Charge* Accounting

27. Budgeting • Define Budget & Status • Enter Budget • Journal Entry • Post to Budget • Report Accounting

28. Planned Functionality • Automatic GL Distribution* • You define Source – e.g. 01-1200 • Multiple Targets – e.g. 50% - 01-2500 • Recursive Use • Currency Revaluation* • Allocations* • Alerts* • Cockpit* Accounting

29. Accounting Details Optional Material Accounting

30. Details: No Sub-Ledger • Traditional Systems • Sub-Ledger Documents create GL Journals • GL Journals are posted • Compiere • All Documents are directly posted • GL Category defined in Document Type • Simulating a Sub-Ledger • Create “Sub Ledger” Reports based on GL Category • Creating Sub-Ledgers (Customization) • Create Accounting Trx Exports for other Client • With the desired level of Summarization Accounting

31. Detail: Balancing • Defined per Accounting Schema • Source Amount Balancing • If Suspense Balancing enabled • Post to Suspense Acct – Otherwise fail • Segment / Element Balancing • Implemented for Organization (Due To/From) • Accounting Amount Balancing • With Currency Balancing • Difference posted to Currency Balancing Account • Without Currency Balancing • Difference added to biggest Balance Sheet Account Amount Accounting

32. Reverse Trx 50 Reverse 50 50 50 Reverse Correction Trx 50 Reverse -50 0 0 Details: Reverse (Correction) • Differentiate between • Reversals (Accruals) • Correction “Undo” • Motivation: Correct Account Debit / Credit Sum • E.g. Differentiate between Invoice Correction and Voiding Invoice • Example - Original Trx • Account 1 Dr 50 • Account 2 Cr 50 • Reverse • Account 1 Cr 50 • Account 2 Dr 50 • Reverse Correction • Account 1 Dr -50 • Account 2 Cr -50 Accounting

33. Details: Invoice Allocation • Payment • In Transfer (Bank) Dr • Unallocated Receipts Cr • Per Allocation Transaction • Unallocated Receipts Dr • Accounts Receivables Cr • Write-Off Cr • Payment Discount Cr • View Allocations in “Reverse Allocation” Accounting

34. Details: Realized Gain & Loss • Created when posting Invoice Allocation • Difference between converted • (Partial) AR/AP Amount • Allocation Amount • E.g. Accounts Receivables Dr 22 Realized Gain Cr 22 • Conversion Rate on Allocation Trx Date • Is Payment Date when 1:1 with Payment • Manual Allocation Date defaults to Login Date Accounting

35. Details: Tax Correction • Enabled in Accounting Schema • If you have to pay tax only on the actually received (not invoiced) Amount – VAT • Example • Lines $100 + Tax1 $15 + Tax2 $5 = Total $120 • Payment of $115 ($5 Payment Discount or Write-Off) • Tax1 Correction = $0.63 (15/120*5) • Tax2 Correction = $0.21 (5/120*5) • Journal Entries (e.g. Sales Trx) • Discount Cr 0.84 • Tax1 Dr 0.63 • Tax2 Dr 0.21 Accounting

36. Details: Document Action Accounting

37. Hands-on • Check / Post Document • Enter manual Journal Accounting