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Accounting Webinar

Online EBMS Training Event, Recorded April 23, 2020.

This webinar includes setting up chart of accounts classifications and types, the accounting workflow, and transactions in EBMS.

Positions that may find this session helpful: Accounting Admins, Financials Department Team Members, Bookkeepers, CFO's, Executive Finance Team Members, New Company Startups

Skill Level: Intermediate

Q&A Recorded:

Where does the GL account come from for the individual line items while recording an invoice?

The G/L Account is set on the Inventory Item on the Pricing tab or the Advanced tab. (Learn More)

Is there a way to see which amounts will be posted to which journals prior to processing an invoice? My question was prior to PROCESSING, not posting

Yes, in EBMS if you go to Sales -> Display Unposted Transactions you can see both sides of the transactions before you post.

(answering this based on 2nd mention in question) Prior to processing you can see mostly which accounts will be used by looking at the G/L Accounts (Revenue) used on the Invoice, and also by defaults used under the Inventory Item > Advanced Tab. One more place for the customer defaults and default fields is found under the Invoice > View > Advanced Options.

So if the item file drives the posting account during the sale of a track count item, how do you recognize the revenue at a departmental level if the same item is sold through multiple departments?

It depends on your EBMS Configuration. Each Department has its own revenue code. The Depatment's revenue Code may override the G/L Account on the Sales Order if a Department or Warehouse is specified in the header. (Learn More)

Your Department should be referenced by the last 3 digits of the account, if they are 000 , it would indicate there is no Department  used or assigned to this G/L Account number.

How do you enter an existing balance into a new Bank Account?

We usually try to figure out where the funds came from for the new Bank Account. In a new company we use a Trial Balance and make a Journal according to that. In an existing company we transfer using a Journal from a General Ledger Account that would represent where the funds came from.

I missed seeing where to check the include cash transactions. Where do I find that?

Cash transactions are included in Customer Payments window. Read more about Customer Payments here.

One place is to Go to the Financials > Chart of Accounts. Then select the Checking Account where the Deposit was made into and double click on the line to open. Then select the Year Tab and go to the debit side and see your Deposits. Double click or select source at the bottom right of the window and it will give you the transactions or customer payments within the Deposit. 

We always process the invoice when payment is received. Is this wrong? Should it be processed even if payment has not been received?

Processing an Invoice before a Payment is made implies that you are giving the customer Charge Terms. An Invoice is often left un-processed while the Sale is being finalized. To further answer your question the invoice should always be processed upon shipping or when the customer receives the item. This is when it becomes a sale whether it has been paid or not paid. This would keep your revenue and accounts receivable current as the sales happen in real time.

So you pick the bank account you are going to be paying form at the time of recording the Accounts Payable invoice not at the time of generating the checks?

Typically the default Bank Account is set there based on the settings under Expenses > Bank Accounts > General. This can be changed from the Vendor Payments if needed but that would also be using your default Bank Account unless changed.

If you don't process invoices when product leaves, won't your A/R be totally meaningless?

Correct, the A/R Account will not reflect a true balance or a balance at all, if Sales Orders aren't processed at time of sale/shipping of Products.

Do you have recommended Chart of Accounts for different business types ?

EBMS comes with a specific set of general or common accounts and we typically customize it based on your company or prior used accounts. We do not offer specific preset default Chart of Accounts for different types of business but do advise at time of initial set up if needed.

When/where do you record the Department you are purchasing or recording the expense invoice for?

Based on my understanding of this question, this needs set up under the Inventory Items. There are a lot of Defaults that need to be set up to have all this working properly. This may need further clarification on your specific need. Please email Support@eaglebusinesssoftware.com for further clarification for your specific need.

Can you show how to process warranty Invoice, no charge to customer and Post all Expenses to warranty expense, and not to show revenue?

1. Create an Invoice selling the warranty item at cost to your revenue account, make sure it's calculating Sales Tax on it.

2. Do another line with a negative amount of the cost of the item to the same revenue account or to a separate warranty sales account (would show similar to your customer discounts account/balance) Uncheck the sales tax box.

3. Do another line with a negative amount of the sales tax amount and use the Sales/Use Tax Paid G/L expense account. (not the liability account) No Sales Tax will be allowed to this non-revenue account. This should equal a zero dollar balance on the Invoice.

We have subcontractors who do work for us that are tied to specific Jobs, how do we enter their Invoices to tie to specific Job Id's?

To answer this would probably require training but in short, Jobs need to be set up under Job Costing > Jobs, then all Expense Invoices and Sales Invoices would need to have that Job ID entered on the job column. This would show costs, revenue and profit/loss with in the Job. Go here for more review on Job Costing.

What is the difference in Manual and Charge option when you are making an Invoice?

If you wish to use the Manual button the payment will processed right away and no check will be printed. You will be prompted to enter a Control Number. If you use the Manual option make sure you have the correct Bank Account set at the top of the Expense Invoice. This is a good option for payments that are made at time of purchase. If you use the Charge option the Invoice is processed and shows up in the Vendor Payments Screen. The Vendor Payments Screen allows you to groups multiple Expense Invoices from a single Vendor and pay them with a single check. (Learn More)

How does the Financial Reporting software handle reporting at the Departmental level and the roll up or consolidation of the Departments for the Company level Reporting?

EBMS will report totals on each account as in any Profit & Loss Report, but if you set up profit centers based on your departments you can pull P&L by Profit Centers and view the profits for each Profit Center.

How do you resolve Invoices that you discover that are more old, i.e two years or more that are processed but have residual balance? Does it cause a problem to unprocess and reprocess in the current year?

This answer is based on what the final goal is so I'll give 2 scenarios.

1. If you have Invoices that have Outstanding Balances on legitimate sales that happened and you do not expect payment on the balance you can move that balance to bad debt expense and write it off for the current year. Create a Sales Invoice with a current date and with a negative amount for the balance you are not planning on receiving from your customer and use the bad debt G/L Account in Misc Expense. Go to Customer Payments > apply the Credit Balance to outstanding Invoices and apply. This will mark all Invoices applied to as Paid Invoices.

2. If the Invoice was created in error and you simply want to clear the Balance also create a Sales Invoice with a credit amount for the Balance you are wanting to clear and to the same G/L Account used on the orginal sale, go to Customer Payments and apply the Credit towards the outstanding Invoices. This will also clear your Balances and show as Paid Invoices.

How is the G/L affected by receiving Purchase Order and then posting AP invoice?

No transaction is made in the G/L Accounts when only receiving the Items on the Invoice and saving. But when processing and posting the A/P Invoice you can go to File > Reports > Financials > Transactions > Detailed G/L Transactions > Use All G/L Codes, select desired date of Invoice or transactions. Set Query and use the following fields.
Database Field = Ref1
Operator = Contains
Value = Invoice #

As always feel free to email Support for further informations or help with your specific scenario.

How do I write a check to a vendor before being issued an Invoice from the Vendor? The part is on a PO for a customer. Example: I need to go pick up a part I have ordered for a customer and pay or give a deposit with a check.

First you will need to confirm the total amount of the bill or the amount needed for a down payment from your Vendor before you go for the part. Then on the Purchase Order set it to Charge and go to File > Down Payment and enter the amount needed to pay the Vendor in the box that comes up. Proceed to print the Check. If you do not know the amount you will need to take a blank check with you and enter the amount when you return. Once you have returned with the part you can go ahead and fill in the Received Quantity on the Expense Invoice and Process it. (Learn More)

Do we need to make that request to be made, regarding taking out the Variance account?

Correct, if you would like to combine the 2 accounts you can send the request to our support@eaglebusinesssoftware.com email and someone will be able to assist you from there.

Could you demostrate how to create a new folder in the general ledger?

In EBMS Navigate to the Financials Menu along the top. Then select Options from the drop down. Go to the General Ledger > Categories Tab. The Account Type must match what is in the folder above it. Asset folders need to be below Asset folders, Expense Folders below Expense Folders, etc...So you may wish to make a new folder under the top "General Ledger" folder so you can make the Account Type whatever you wish, otherwise your folder type will need to match the Account Type in the folder above it. If you make a folder with the type "Misc." it can hod a mixture of different types of folders below it. (Learn More)

Is it possible to have Inventory aAdjustments going to a different GL account than Inventory Variance?

If you don't use the Variance Account you would use your purchase account

What processes should be done on a month-end basis for accounting?

EBMS doesn't have specific processes that "have" to be done to move on to the next month but common processes would be to verify that all Sales Orders and Purchase Orders are processed that need to be processed, pay Sales Tax, Account Reconciliations for month end, any Journal Entries that need made, then if a company doesn't want any further changes made you can go to Financials > Fiscal Year Controls, check the box by the month desired to close. This can be opened by users with permissions if needed. And then closed again.

Do you have a chart that explains the source ? eg. APP - what it means?

Some commonly used Source codes are the following:

Why would she put the cost in on the warranty item? If a customer gets a copy they will know the Purchase Cost.

Nomally warranty items are invoiced at Cost since profit isn't normally made on it but that is the choice of the client on how they prefer to process it or to ask their accountant for any legal advice on how it should be done for sure.

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The Eagle Support Team
support@eaglebusinesssoftware.com
717-442-3247 x2