Member FAQ's | Accounts
Logistics and Accounting Solutions UK
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03. How are exchange differences dealt with?
04. Can I clear an invoice in a different currency?
05. How do I deal with partial payments?
06. Can I send a Customer statement on demand?
07. How do I allocate a Credit Note to an invoice?
08. How do I reverse a remittance?
09. Can I see a Balance sheet at a specific date in the past?
10. Can I run Aged Lists for specified dates?
11. Does KBS have a cash book?
12. How do I account for Standing Orders?
13. How do I deal with payments and accruals?
14. How do I account for cash receipts/payments?
This requires two postings. The first is against the Sales or Purchase account with a JC/JD transaction type. The nominal posted to (contra to debtors/creditors) will be a suspense account. The second posting is in the Nominal ledger using Cash Payments or Receipts (as appropriate). The nominal contra account will be the same suspense account as in the first posting. This results in a BP/BR transaction on the nominal and a JC/JD transaction on the Sales/Purchase account.
The KBS accounting module allows you to run your accounts beyond your financial year end to allow you to reconcile and also make any adjustments that may be advised by your accountant or auditors. You do this within the MN (Management module), Periods in Year notebook page. Set the number of periods required and the period start and end dates to your requirement. The number of periods may be extended at any time.
Note the current period fields. These are updated whenever you close periods in the NL, SL or PL modules. Once a period is closed you may not post into it. The SL and PL (Sales & Purchase ledger) may be closed in advance of the NL (Nominal ledger) to prevent these ledgers being updated (and hence Debtors,Creditors, VAT control etc) while adjustments may still need to be made to the nominal. The period numbers relate to the No. column in the Period Dates grid displayed.
Individual periods are closed from the File – Period End option accessed from the menu bar in each of the NL, SL and PL modules.
Once closed, periods may only be reopened through the MN – Periods in Year notebook page.
This same page also has the Close Current Year button.
Once period 12 has been closed on the NL, this option is used to close the current financial year. The following actions are recommended before this is used:-
- All users must sign off (except the user performing this action).
- A backup of the database is made.
- All period based reports are printed (or saved to disk). These are Balance Sheet, Income Statement (Profit & Loss), Trial balance and Detailed Trial Balance.
- The accounts integrity is checked (run within the End of Day procedure) i.e. the Trial Balance, Debtors to Customer balances and Creditors to Supplier balances are checked.
- Ensure that the entry for Retained Earnings (MN – Ledgers notebook page) is correct.
Closing the current financial year has the following effect:-
- The balance on profit and loss accounts is zeroed and transferred to the Retained Earnings nominal account specified on the MN – Ledgers notebook page.
- The Period Dates table (MN – Periods in Year) are advanced by one calendar year.
- The Current Periods are reset from the new Period Dates table.
- The end of year balance for each nominal account is stored to make nominal account balance calculations more efficient (e.g. the Trial Balance report).
Note that KBS does not remove transactions or purge any data.
Actions to perform after closing the financial year are:-
- Check the values on the MN – Periods in Year are correct. You may want to adjust the number of periods.
- Check the Trial Balance is OK.
- Check the Balance sheet and Income Statement for the first period of the new financial year.
03. How are exchange differences dealt with?
This is best described with an example.
We have a sales ledger account with an invoice of $100.00, posted with exchange rate of 1.64 = 60.98 GBP.
We then post a remittance of $100.00 at exchange rate 1.72 = 58.14 GBP.
The sales account shows 58.14 GBP Unallocated and a Balance of 2.84 GBP.
When the transactions are allocated to each other, the sales Unallocated goes to 0.00 GBP, the sales ledger account balance goes to 0.00, and a nominal journal for 2.84 credits the Debtors account and credits the Exchange Difference control account.
04. Can I clear an invoice in a different currency?
Yes, the way it works is that you may pay with any currency which has the same value in your home currency.
Example, an invoice for $100.00 at 1.64 is 60.98 GBP.
This may be paid with 60.98 GBP or 92.08 Euro (at 1.51).
05. How do I deal with partial payments?
When you tick the box alongside the transaction to allocate, move the cursor to the Allocation column and alter the amount displayed to your requirement.
06. Can I send a Customer statement on demand?
Yes, from the allocations tab page (for that customer). Use the Statement button. The document may be printed, faxed or emailed.
07. How do I allocate a Credit Note to an invoice?
In the allocations tab page for that customer, display the open transactions. Tick the invoice and the credit. Any under/over allocation is carried forward as a remittance, so you may need to alter the amounts in the Allocation column.
08. How do I reverse a remittance?
In the allocations tab page for that customer, display all transactions. Right click on the remittance to reverse and select Expand. You then have a button to Reverse. The transaction is marked as Reversed and all allocations are undone. Any exchange difference postings are also reversed.
09. Can I see a Balance sheet at a specific date in the past?
Yes, the balance sheet (and income statement) may be run for any date in the past.
10. Can I run Aged Lists for specified dates?
Yes, aged reports on both the sales and purchase ledgers may be run for any date. Transactions posted after the specified date are excluded. Also, allocations are shown as open if they were performed after the specified date.
11. Does KBS have a cash book?
Not in the sense of a separate ledger. However, the Journal tab pages in the Sales and Purchase ledgers provide an audit of all payments paid or received. Another option is the Transaction Report in the Nominal ledger (NL).
12. How do I account for Standing Orders?
You set up an automatic posting journal (Journal tab in NL). Set up a new journal and before saving use the Auto button to enter the parameters for the Standing order. Ensure the Type box says Auto.
13. How do I deal with payments and accruals?
This is another type of automatic journal, called a reversing journal. Ensure the Type box says Reversing. Two sets of postings are made, the second reverses the effect of the first on the next posting date. Typically the first posting is the last day of the month, and the next(last) posting is the first of the following month.
14. How do I account for cash receipts/payments?
From the NL module, select the File menu and the Cash payments or receipts.