Monday, November 13, 2017

Financial Management

Bank Deposit
Function path: Debtors > Payments > Enter Bank Deposits
While you have deposited your money at bank, you will need to record it by Enter Bank Deposits. It will modify the Undeposited payments status of the receipts as deposited.

Cash Deposit
Function path: Debtors > Payments > Enter Cash Deposits
This function is exactly the same as Bank Deposit. The simply difference is Cash Deposit will skip the selection screen of undeposited receipt. It will be more easier to enter deposit entries. If you need to amend a Cash Deposit, you will use Amend Bank Deposit to finish it.

Payment Received
Function path: Debtors > Payments > Enter Payments Received
In nextERP, you use Payment Received while customers pay their invoices. There are four payment types supported, cheque, cash, credit card, and bank transfer. Once a payment received is reconciled, it can not be amended.

Move Payment
Function path: Debtors > Payments > Unallocate/Move Payments
In nextERP, Move Payment is used to revise your payment account. After unallocating/moving a payment, you will need to do account reconciliation to allocate it again.

Bank Transfer
Function path: Ledger > Reconciliation > Enter Bank Transfer
A Bank Transfer will be entered while your company pay your creditors/debtors using bank transfers, or transfer money between bank accounts. In nextERP, once a bank transfer is reconciled, it can not be amended.

Move Bank Transfer
Function path: Ledger > Reconciliation > Unallocate/Move Bank Transfer
In nextERP, Move Bank Transfer is used to revise your bank transfer destination account. After unallocating/moving a bank transfer, you will need to do account reconciliation to allocate it again.

Function path: Ledger > Journals > Enter Journal
nextERP automatically records transactions into the general ledger accounts, so you will not see journal entries for these transactions. However, sometimes you still have to process some journal entries for recording transfers between bank accounts or recording adjustment, etc. Enter Journal helps you to deal wit it.

Stop Order
Function path: Ledger > Ledger Maintenance > Stop Order Definition
A Stop Order is so-called debit order. It is an instruction that you issue to your bank to make future dated recurring payments. In other words, If you have a payment needs to deducted from your bank account each month, you will use Stop Order to deal with it. 

Bank Reconciliation
Function path: Ledger > Reconciliation > Enter Bank Reconciliation
A Bank Reconciliation is used to check bank transactions against the real bank statement. It ensures that the record of your bank account balances matches the amounts on your bank statements.

Debtor Account Reconciliation
Function path:  Debtors >  Debtors > Debtor Account Reconciliation
Debtor Account Reconciliation is used to reconcile a debtor account. When you have payments unallocated or moved, you will reallocate it by this function. Or you have a posted payment without allocating to any invoice number, you can allocate it by this function as well.

Creditor Account Reconciliation
Function path: Creditors  >  Creditors  > Creditor Account Reconciliation
Creditor  Account Reconciliation is used to reconcile a creditor account. When you have payments unallocated or moved, you will reallocate it by this function. Or you have a posted but not-allocated payment,  you can allocate it by this function as well.

Approve Voucher
Function path: Creditors > Importation > Approve Voucher
In nextERP, Approve Voucher is to control the transaction of general ledger involvement for ensuring the amount is correct and reasonable before updating the accounts. You can also change the settings to be automatically confirmed by nextERP.

Debtor Statements
Function path: Debtors >  Debtors > Debtor Statements
In nextERP, Debtor Statements is used to download selected Debtors' Statements. And there are many options to customize the statements for customers' need. 

Debtor Age Analysis
Function path: Debtors >  Debtors > Debtor Age Analysis
Debtor Age Analysis is a periodic report. It lists the balance of unpaid invoices and credit limit. It is a good tool used to keep a track of outstanding money owed to your company and to know how long each customer has owed. This report helps you manage your receivables to ensure that you get paid .

Month End
Function path: Ledger > Ledger Maintenance > Ledger Period End
At the close of each month, Month End is required to ensure all financial records and inventory are balanced before the start of a new month and keep your them updated. In nextERP, Month End will advance Debtors, Creditors and Ledger accounts simultaneously. Before doing Month End, you have to ensure all tills are closed and all bank reconciliations are done. Notice that Month Endcan not be reversed. 

Year End

Year End is the procedure to prepare your accounts and inventory for the coming year. By closing the year , you are effectively bringing the financial records and inventory up to date.  nextERP will automatically do Year End after each 12th Month End procedure.  Before doing Year End, make sure that you have entered all transactions and adjustment and no further entries are required for the current year.


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