<< Click to Display Table of Contents >> Navigation:  General Ledger System > STARK Version 5.1.35.XXXX New General Ledger Features This Help File Page was last Modified on 02/08/2023

❑This General Ledger System posts almost all Financial Transactions, automatically - in the background with no procedural changes - including all Sales, Receipts, Bills, Payments and Inventory related Financial Transactions that are entered through the Accounts Receivable, Accounts Payable and Inventory Tracking & Job Costing modules.

•You do not have to be a CPA to use this General Ledger module.

 

•However, if you are just now planning the Start Up of this General Ledger System, you may need to confirm some information with your Company's CPA.  

✓The Understanding a General Ledger System chapter is not intended to be a course on Accounting, but it will explain - in reasonably simple terms - some important Accounting Concepts.

✓Those person(s) who are using the Accounts Receivable, Accounts Payable and/or Inventory Tracking & Job Costing modules do not really need to know this information.

 

•Certainly, the person(s) who actually setup the General Ledger System must have a working knowledge of Accounting Concepts, as should any Employee who has been granted Accounting Administrator privileges.

 

❑Introducing the new MKMS General Ledger System Features

•This chapter provides an Overview of the new MKMS General Ledger System Features and Transactional Changes implemented in STARK 35 (referred to in future chapters as the New GL)

 

 

 

•As with all other modules within the Micro Key Millennium Series, the General Ledger System has a step-by-step "start-up" process that must be followed to ensure accurate Financial Reporting in the future after your Company has upgraded to this New GL version.

A.For existing General Ledger System users, before proceeding with the actual installation of the New GL, you must:

1.Read this chapter carefully because it covers the new Features and Transactional Changes that will (potentially) change the way you are currently doing some things within MKMS - most specifically because they change the way certain Financial Transactions are now executed internally (Links are provided to all chapters that explain in detail how and why these new Features and Transactional Changes have been designed, and are intended to be used).

2.Read the "Getting Ready to use the new MKMS General Ledger System" discussion and the associated tasks outlined in the General Ledger Upgrade Overview chapter.

3.It is assumed that the Accounts Receivable, Accounts Payable and General Ledger modules - and the Inventory Tracking & Job Costing module, if it is registered - have already been fully implemented

 

B.For those that are new to the MKMS General Ledger System, before installing the STARK 35 upgrade, you should:

1.Read this chapter to begin to get a sense of how information is presented, and get to know some of the Features and Transactional Changes implemented in STARK 35 (New GL)

2.Read (review) the Understanding a General Ledger System chapter (and its subordinate Accounting Terminology, Understanding Debits & Credits, and Double Entry Bookkeeping chapters)

3.Read the General Ledger Start-up Overview chapter to determine when you will start the conversion from your existing General Ledger and the implementation of the fully integrated MKMS General Ledger System in STARK 35 (referred to here and in future Help Files chapters as the New GL)

4.It is assumed that the Accounts Receivable and Accounts Payable modules - and the Inventory Tracking & Job Costing module, if it is registered - have already been fully implemented

 

❑Review these Company Settings (accessible from the Company tab on the User Options Form) to ensure this General Ledger System is setup the way your Company's business model requires:

 

User Options - Company tab - Company Settings bar

 

a.Defer Recurring Revenue - By default, the DeferRecurringRevenue option is set to False ("F").

▪When the DeferRecurringRevenue option is set to True ("T") by using the Deferred Revenue Setup Wizard, Earned and Deferred Revenues are tracked for each Recurring Revenue Detail Line Item on those Invoices created within the Accounts Receivable and will be recorded in the General Ledger System using the Post Earned Revenue dialog which will periodically calculate, distribute, and post Deferred and Earned Revenues to the appropriate General Ledger Accounts and the Account Register.

b.Average Cost Inventory - By default AverageCostInventory is set to False ("F").

▪The required Inventory Valuation method is Average Cost of Inventory for those Companies using the STARK 35 version of the General Ledger System and the Inventory Tracking & Job Costing System

▪When AverageCostInventory is set to True ("T") by running the Calculate Inventory Item Average Cost procedure (assuming that the Start Inventory Tracking/Job Costing setup wizard has also been executed which setsITJCIsInstalled to True ("T")), Inventory Valuation will be based on the Average Cost paid for an Inventory Item versus whatever the currently set Inventory Valuation Method is.

oThe Calculate Inventory Item Average chapter provides a full discussion on using that procedure to calculate the Average Cost of Inventory.

oSee the Inventory Tracking & Job Costing Setup Procedure chapter for additional information..

c.Allow Trace Back - By default the AllowTraceBack option is set to False ("F").  

▪Setting the AllowTraceBack option to True ("T") provides an enhanced Trouble-Shooting tool for Technical Support personnel.

d.Bill In Advance - By default, the BillInAdvance option is now set to False ("F") in the Company Settings Form.

➢Note: The Bill in Advance feature is now set individually for each Billing Cycles, thus allowing each Billing Cycle to be Billed in Advance or not be Billed in Advance - as needed - based on each Company's business model.

▪Most Companies do Bill their Recurring Revenue Accounts in advance of the month in which that service is provided.

▪If this is also the case, your Company will Check the Bill In Advance field in each Billing Cycles Form

e.Start Of New GL Transaction Date  - By default, the StartOfNewGLTransactionDate is empty until the General Ledger Setup Wizard is executed when the appropriate Date (based on the first day following the Ending Month and Year identified during that procedure and formatted "YYYYMMDD") is inserted here.

f.Canada Tax -  By default, the CanadaTax option is set to False ("F") in the Company Settings Form

▪Setting the CanadaTax option to True ("T") enables the specialized Goods & Services Tax tracking system (e.g., PST/GST/HST) for Companies who are required to pay that type of sale tax in Canada

▪For General Ledger System users, it adds two additional fields to the Mandatory Accounts (and in the Re-Declare Accounts) Form

▪Read the Canada Sales Tax chapter in the Help Files for that specific information.

 

❑Let's Look at more of What's New

•Revised Setup, Look Up, and Posting procedures:

1.Transaction File Form - The old Chart of Accounts Form has been eliminated; and - back by popular demand - a completely revised Transaction File dialog has been updated to allow a User to specify a Date Range and view all General Ledger System Financial Transactions (Debits and Credits) which were posted within that Date Range, look up the original document that created the Financial Transaction, and print (or export) a report of those date selected Financial Transactions.

 

Transaction File Form

 

2.Account Register Form - A new multi purpose Form - the Account Register dialog - has been added to provide some special capabilities (i.e., a list of All, or a Filtered list of selected, Financial Transactions which were posted to one User Specified General Ledger Account within a specified Date Range.

 

Account Register Form

 

a.All Financial Transactions will be logged to the Account Register Form.  

b.The Account Register will show the Starting Balance, the As Of Balance based on a specified "To" Date, and the current Account Balance based on the most recent Posting Date recorded in the General Ledger System as a Financial Transaction derived from the Accounts Receivable, and/or Accounts Payable, and/or Service Tracking, and/or Inventory Tracking/Job Costing modules, and/or from General Journal Entries.

c.The originating Form (e.g., Invoice, Receipt, Bill, Payment, etc.) - where that specific Financial Transaction was created - may be displayed by Double-Clicking that Financial Transaction's record on the Account Register Form.

d.The Balance of the selected General Ledger Account - that existed at the time when the listed Financial Transaction was posted - is also provided.

e.The contents of the Account Register (list) Grid is determined by selecting a General Ledger Account Number, and may then be filtered based on a Transaction Date Range, by a designated Division, for a specified Department, from a certain Source (e.g., All, Bank Fee Credit, Bill Net Debit, Credit Card Net Debit, etc. ), and/or by a particular Document Type (e.g., All, Bill, General Journal Entry, Invoice, Receipt, etc.).

 

3.Although 1000-9999 (i.e., Assets = 1000-1999, Liabilities = 2000-2999, Equity = 3000-3999, Sales = 4000-4999, and Expenses = 5000-9999) is the recommended Account Numbering scheme, the new General Ledger System now supports a Numbering structure that enables your Company's Accountant to set a different Numbering Range for each of the five Primary Account Divisions (i.e., Assets, Liabilities, Equity, Sales and Expenses), which may now include up to 8 main Account Numbers digits, each with up to 4 Decimal Place digits (therefore "12345678.1234" could be a valid General Ledger Account Number).

 

4.To accomplish this expanded capability, each General Ledger Account must be assigned to a General Ledger Group, and each General Ledger Group must be assigned to one of the five Primary Account Divisions.

a.By doing so, each General Ledger Account will be associated with - be a member of - one of the five Primary Account Divisions,

b.The result is that each General Ledger Account will be correctly located within your Company's Balance Sheet and Income Statement reports, regardless of the Account Numbering scheme that is adopted.

 

5.The required set of Mandatory Accounts has changed due to improvements in the system's operational capabilities.

▪If any of the required Mandatory Accounts have not been defined - and more importantly - assigned to the appropriate field in the Mandatory Account Form you will be notified.

▪So, when the MKMS is first started, a  *** WARNING ***  message will be displayed when first opening the MKMS program that has the New GL Features and Transactional Changes.

 

 

6.The new set of Mandatory Accounts are as follows (with the recommended Numbering Range shown in parentheses):

▪Many of these General Ledger Accounts Numbers already exist, and so may simply need to be re-titled.

 

General Ledger Setup Wizard - Account Declaration Form

 

a.Current Earnings - This must be created as the Equity Account for Current Earnings (usually 3000-3999).

b.Retained Earnings - This must be created as the Equity Account for Retained Earnings (usually 3000-3999).

c.Earnings Posting - This must be created as the Special Account for Posting Earnings (usually the last General Ledger Account Number which, in the recommended numbering scheme, would be 9999).

d.Accounts Receivable - This must be created as the Asset Account for Accounts Receivable (1000-1999).

e.Accounts Payable - This must be created as the Liability Account for Accounts Payable (usually 2000-2999).

f.Undeposited Funds - This must be created as the Asset Account for Undeposited Receipts (usually1000-1999).

g.Inventory - This must be created as the Asset Account for Inventory (usually 1000-1999).

h.Inventory Adjustments - This must be created as the Expense Account for Inventory Adjustments (usually 5000-9998).

i.WIP Inventory - This must be an Asset Account for the Inventory Items that have been identified as part of a Work In Progress.

j.Inventory Purchases -  This must be created as the Liability Account for Inventory Purchases  (usually 2000-2999).

k.COGS (Cost of Goods Sold) - This must be created as the Expense Account for Cost of Goods Sold (usually 5000-9998).

l.Local Tax (Liability) - This must be created - regardless of whether or not you must charge that tax - as the Liability Account for Local Sales Tax Liability  (usually 2000-2999).

m.National Tax (Liability) - This must be created - regardless of whether or not you must charge that tax - as the Liability Account for National Sales Tax Liability  (usually 2000-2999).

n.Customer Deposit (Liab) - This must be created as the Liability Account for Advance Deposits (2000-2999).

 

7.The Financial Statements for All Open and/or Closed Financial Accounting Periods may now be re-produced at any time, whenever needed.

▪These include (there are more) your Company's Balance Sheet, Trial Balance, Profit & Loss Comparison, Statement of Cash Flow, and Income Statement reports.

▪See the Financial Statements and Reports chapter (and associated Links) for more information.

 

8.There are more Period Closing Options available in the New GL - implemented to provide much greater flexibility and reporting capability.

a.Accounting Periods in the Accounts Receivable and Accounts Payable modules may be closed individually.

b.If an Accounting Period is Closed in the New GL, no Financial Transactions Dated within - or before - that Accounting Period may be entered in the Accounts Receivable and Accounts Payable modules

c.When an Accounting Period is Closed in the New GL, there are multiple Closing Stages available for each Accounting Period:

i.Open - This is the default Closing Stage and allows posting to and from all modules.

ii.Partially Closed - This Closing Stage temporarily restricts all posting to and from all modules.  This Stage may be changed back to Open, if necessary.

oThis Stage may be changed to Closed, GJ Only, or Open, if necessary; or reset to Closed.

iii.GJ Only - This Closing Stage temporarily restricts all Closing Stage posting of all modules, except that it allows entries to be made using the General Journal.  

oThis Stage may be changed to Partially Closed, or Open, if necessary; or reset to Closed.

iv.AR Closed - A month within the Accounts Receivable System may be Closed in advance - even before that same Accounting Period Month is Closed within the General Ledger System.

v.AP Closed - A month within the Accounts Payable System may be Closed in advance - even before that same Accounting Period Month is Closed within the General Ledger System.

vi.Closed - This Closing Stage restricts all posting to and from all modules, and provides the option to Recalculate the Earnings for this Accounting Period.

oUntil the next month has been set to Closed, this Stage may be changed to Partially Closed, GJ Only, or Open, if necessary; or remain at Closed.

 

9.General Ledger Checkpoints Form - A General Ledger Checkpoint may be created at any time and will contain All the General Ledger Account Balances (a snap-shot view) as they existed at the time (Date) the Checkpoint was created.  

▪At least one Employee must have a Check in the Notify General Ledger Changes field in the Accounting sub-tab on the Security tab of the Employee Form

▪Preferably, that Employee will also designated as an Accounting Administrator as assigned in the same Accounting sub-tab on the Security tab of the Employee Form

 

General Ledger Checkpoint Form

 

10.Receipts - which may now be recorded as Deposited and/or Allocated to one or more specifically designated Invoices from within the Receipts Form - are managed in a somewhat different way:

 

Receipts Form

 

a.When it is initially entered, a Receipt is Debited (added) to Undeposited Funds (a Mandatory Asset Account); and Credited (subtracted) from the Accounts Receivable Asset Account.

b.However, a Receipt may instead be identified as a Customer Deposit where upon that Amount is Debited (added) to the Undeposited Funds (a Mandatory Asset Account), but Credited (added) to the Customer Deposit Liability Account (a Mandatory Liability Account).

c.When a Receipt is accepted as a Customer Deposit and so designated, that Receipt may not be Allocated until the Customer Deposit status has been changed to a regular Receipt record (but can, and should be deposited in the Bank Deposits Form see d. below).

d.Although Depositing a Receipt does have an effect on the General Ledger, whether or not a Receipt is Allocated has no effect on the General Ledger; that Allocation information is maintained and reported only within the Accounts Receivable module.

e.All Receipts must be specifically recorded as Deposited - either on the Receipts Form or by using the new Bank Deposits Form (see 10. below) as to when and where (in what Bank) they have been deposited.

f.The Edit Refund and Bounce buttons are only available on the Receipts Form after the Receipt has been recorded as Deposited (either on the Receipts Form or in the Bank Deposits Form)

g.The Auto Draft procedure will automatically Debit (add to) the selected Bank's General Ledger Asset Account, and Credit (subtract from) the Accounts Receivable Asset Account - bypassing the Undeposited Funds General Ledger Asset Account because this Auto Draft procedure makes the Bank Deposits automatically.

 

11. A Bank Deposits Form is now available to record when and which Batches of Receipts were deposited into what Bank.

 

Bank Deposits Form

 

❖See the Defining your Company's Batch Numbers discussion in the E-Payments chapter for detailed information; and the "Batch Number Assignment" discussion in the Receipts chapter for more information about Batch Numbering.

 

a.Whether a Receipt is entered as a Customer Deposit, or was simply posted as a normal Receipt and Allocated to one or more Invoices, when that Receipt is recorded as Deposited - either on the Receipts Form or by using the new Bank Deposits Form - the Amount of the Receipt is Credited (subtracted) from the Undeposited Funds Asset Account and Debited (added) to the selected Bank's Asset Account.

b.The Date used for the Bank Deposit Transaction is the Date assigned at the top of the Bank Deposits Form (regardless of the actual Date it was entered).

c.By Checking the Deposited Only box on the revised Cash Receipts Report dialog, a list of the Receipts that were Deposited - filtered by Date, Batch Number, Bank, etc., as needed - may be created using this revised Cash Receipts Report.

 

12.Inventory associated Purchase Orders and Bills are now posted as follows when using this new General Ledger System:

•There are three (3)  Inventory Valuation Methods available when using the Inventory Tracking & Job Costing System.

1.Original Price (Cost) -  By default (except for STARK 35 General Ledger System Users who Must use the Average Cost of Inventory method), the Value of each Inventory Item is the original Price (Cost) assigned to that Inventory Item as it was entered (or subsequently manually updated) in the Sale-Purchase Category Form.

2.The LIFO (Last In - First Out) -  The original Price remains the same, but the COGS Value (Cost) is automatically re-set, based on the most recent Cost paid (which includes Sales Tax, if charged) for an Inventory Item - as charged on a Bill from a Vendor for the Re-Purchase of each Inventory Item.

a)When creating a Purchase Order and/or a Bill: be sure to enter the actual Price (Cost) being charged by the Vendor for each Inventory Item.

b)Once the actual unit Price being charged by the Vendor is entered on a Bill, this actual unit Price (and any Sales Tax, if charged) will become the new  "COGS Value" on the Sale-Purchase Category Form.

3.Average Inventory Cost - The Average Cost of Inventory (which includes Sales Tax, if charged) is the Value that is used for the Cost when posting Inventory related Financial Transactions into the General Ledger System, and for Inventory Related Reports and General Ledger System's Financial Statements and Reports. This method is turned on by setting the AverageCostInventory option to True ("T") in the Company Settings dialog - which is accessible from within the Company tab of the User Options Form. 

▪The required Inventory Valuation method is Average Cost of Inventory for those Companies using the STARK 35 version of the General Ledger System and the Inventory Tracking & Job Costing System

▪Also, see the Understanding how Inventory Values & Counts are Calculated chapter for additional information.

 

•When a Purchase Order is first created with a Detail Line Item ordering one or more of a specific Inventory Item, no General Ledger transactions are required.

✓The Price must be entered which should be based on the anticipated Price that the Vendor will charge.

 

✓When Inventory Items on that Purchase Order are Checked In:

oThe Price entered when the Inventory Items were ordered (see above) must be confirmed, and if necessary, if the unit Price that will actually be charged is different, it must be updated to reflect the real cost.

a)The Gross Value [(Price x Quantity) + Sales Tax] of the Inventory Items that were Checked-In is Debited (added to) the Inventory Asset Account;

b)That same Gross Value [(Price x Quantity) + Sales Tax] is Credited (added to) the Inventory Purchases Liability Account.

 

✓When the Bill It option is used to create a Bill for those Inventory Items on that Purchase Order:

a)The Gross Value [(Price x Quantity) + Sales Tax] of the Inventory Items that were Billed is Debited (subtracted from) the Inventory Purchases Liability Account (thus "zeroing out" that "temporary Inventory Purchases holding" Liability Account);

b)That Gross Value [(Price x Quantity) + Sales Tax] is Credited (added to) the Accounts Payable Liability Account

 

✓If Canada Sales Taxes are being charged instead:

a)The National Sales Tax Amount is Debited (added) to GST/HST Asset Account.

b)If a local PST Tax was charged,

i.That portion of the Canada Tax will be Debited (added) to the PST Sales Tax Expense Account,

ii.Debited (subtracted) from the Current Earnings Equity Account, and

iii.Credited (subtracted) from the special Earnings Posting Account.

 

•A Purchase Order is created with a Detail Line Item ordering one or more of a specific Purchase Items that are not Inventory Items, no General Ledger transactions are required.

✓When Purchase Items that are not Inventory are Checked In: no General Ledger transactions are required.

✓When the Bill It option is used to create a Bill for those non Inventory Purchase Items:

a)The Gross Value [(Price x Quantity) + Sales Tax] of the Purchase is Credited (added to) the Accounts Payable Liability Account;

b)That same Gross Value is Debited (added to) the appropriate Purchases Expense Account (as defined for the Purchase Item);

c)That same Gross Value is Debited (subtracted from) to the Current Earnings Equity Account;

d)That same Gross Value is Credited (subtracted from) to the special Earnings Posting Account;

 

•A Bill is created (directly - without using a Purchase Order) with a Detail Line Item for the purchase of an Inventory Item:

a)The Gross Value [(Price x Quantity) + Sales Tax] of the Inventory Items that were Purchased is Debited (added to) the Inventory Asset Account.

b)That same Gross Value is Credited (added to) the Accounts Payable Liability Account.

 

✓If Canada Sales Taxes are being charged instead:

a)The National Sales Tax Amount is Debited (added) to GST/HST Asset Account.

b)If a local PST Tax was charged,

i.That portion of the Canada Tax will be Debited (added) to the PST Sales Tax Expense Account,

ii.Debited (subtracted) from the Current Earnings Equity Account, and

iii.Credited (subtracted) from the special Earnings Posting Account.

 

•A Bill is created (directly - without using a Purchase Order) with a Detail Line Item for one or more Non-Inventory Item(s)

a)The Gross Value [(Price x Quantity) + Sales Tax] of the Purchase is Credited (added to) the Accounts Payable Liability Account;

b)That same Gross Value is Debited (added to) the appropriate Purchases Expense Account (as defined for the Purchase Item);

c)That same Gross Value is Debited (subtracted from) to the Current Earnings Equity Account

d)That same Gross Value is Credited (subtracted from) to the special Earnings Posting Account

 

13.Inventory Sales are posted automatically when using this new General Ledger System:

▪When any Sale Detail Line Item is created, these transactions are always posted:

a)The Gross Value of that Detail Line Item [(Price x Quantity) + Sales Tax] is Debited (add to) the Accounts Receivable Asset Account

b)The Net Value (Price x Quantity) is Credited (added to) Sales Account assigned to the Sale Item.

c)The Amount of any Sales Tax charged (if any) is Credited to the appropriate Local and/or National Sales Tax Liability Account

 

▪When the Sale Item on the Detail Line Item of the Invoice is not an Inventory item,

a)The Gross Value of that Detail Line Item [(Price x Quantity) + Sales Tax] is Credited (added to) the Current Earnings Equity Account

b)Gross Value of that Detail Line Item [(Price x Quantity) + Sales Tax] is Debited (added to) the special Earnings Posting Account

 

▪However, when the Sale Item on an Invoice is an Inventory item, a different set of entries is required to track the Cost of the Goods that were Sold ("COGS"), because the Value of the COGS must be calculated and recorded:

a)Calculate the COGS Amount - The current COGS Value of the Inventory Item (as currently recorded on the Sale-Purchases Items Form) is multiplied by the Quantity of the Inventory Item that is being sold, to calculate the COGS Amount.

b)That COGS Amount is Credited (subtracted) from the Inventory Asset Account

c)That COGS Amount is Debited (added) to the COGS Expense Account

d)The Net Amount of the Detail Line Item - excluding the COGS Amount (i.e. The Net Amount of the Detail Line Item - which does not include any Sales Tax charges - minus the calculated COGS Amount) - becomes the Profit for that Sale which is Credited (added) to the Current Earnings Equity Account.

e)The same Net Amount of the Detail Line Item - excluding the COGS Amount (i.e. The Net Amount of the Detail Line Item - which does not include any Sales Tax charges - minus the COGS Amount) - is Debited (added) to the Earnings Posting Special Debit Account.

 

❖See the Tracking Inventory Values & Quantities as Assets, Liabilities, Sales & Expenses chapter for more information.

 

14.Credit Cards which are being used by your Company to make Payments on Bills, and those associated Charges that will then appear on the Credit Card Statements, may now be tracked in the new Credit Card Maintenance & Tracking System.   To implement this capability, you must complete these required steps:

a.Create the necessary General Ledger Accounts:

i.Create a General Ledger Liability Account (e.g., "Credit Card") for keeping track of the Credit Card Debt incurred by your Company (which will be tracked as a Current Liability), and

ii.Create a General Ledger Expense Account for those "Credit Card Purchases".

 

b.Create a Vendor Classification Code and Description for designating a Vendor as Credit Card Company.

i.These Codes may then be assigned to each of those Vendors (created in step c. below).

 

c.Create a Vendor record (representing a Credit Card Company) for each Credit Card your Company uses for making Credit Card Pay (see f. below) Payments on Bills.

i.Assign each of these Vendor records with the Vendor Classification Code created in step b. above.

ii.Then, a Bill can be created for that Vendor representing the outstanding balance on a Credit Card, which may then be Paid by Check or Electronic Transfer.

iii.This process will reimburse (make a payment to) that Credit Card Company (Vendor) for the Amount your Company had previously charged as Payments on those Bills.

 

d.Create a matching Purchase Category for each specific Credit Card that will be used for this purpose:

i.Assign an Item ID Code representing that Credit Card, followed by a dash, and then the letters "PAY" (e.g., AMEX7515-PAY)

ii.Assign it the Purchase GL# General Ledger Expense Account Number ("Credit Card Purchases") created (in step a, ii. above) for the Credit Card Liability Account to be used for tracking the current Credit Card Debt.

 

e.Create a Credit Card maintenance record with its Name (and last four digits of its Account Number)

i.Assign it to the Vendor record created for this purpose (see step c. above),

ii.Enter the actual full Account Number

iii.Assign it the General Ledger Liability Account (e.g., "Credit Card") for Credit Card Debt created (in step a, i. above)

iv.Assign it the Purchase Category Code created for this specific Credit Card (created in step d. above).

v.You may also set the current balance for this Credit Card maintenance record when prompted to do so (or set it to $0.00).

 

f.The Bills Form for those Vendors who are not classified as a Credit Card Company, will have a Credit Card Pay option (see the "Credit Card Pay" discussion in the Bills - Understanding the Bills Form chapter for more information)

i.Use its a Drop-Down Selection List of all established Credit Cards to Choose the Credit Card that should be used to Pay for the currently selected Bill.

ii.The Amount of the Bill Payment that used the Credit Card Pay option will be Debited (added to) the General Ledger Expense Account (e.g., "Credit Card Purchases"); and that Amount will be Credited (added to) the General Ledger Liability Account (e.g., "Credit Card")

iii.This Payment will be recorded in the Credit Card Register Form.

 

g.Thereafter, the Credit Card Form, and the designated Vendor record created for each Credit Card Company that your Company uses, will both provide access to the Credit Card Register Form

▪This Credit Card Register will display a Grid with:

 

Credit Card Register

 

a)A list of all the previously posted Payments made on Bills using to the currently selected Credit Card (or Credit Card Company);

b)A list of all Statements (entered as Bills to the designated Credit Card Company Vendor) from the currently selected Credit Card Company.

c)A Create Bill option (see below) to created a Bill for charges that are to be paid to the designated Credit Card Company Vendor.

 

▪Create Bill - This option on the Credit Card Register Form is used to create a Bill for the Vendor identified as a Credit Card Company for a designated Amount.

oWhen this Bill is generated, that Amount will be Debited (subtracted from) the General Ledger Liability Account (e.g., "Credit Card"); and Credited (added to) the normal Accounts Payable Liability Account

oThis Bill can then be Paid in the normal manner using for making Payments (i.e., Auto Pay, E-Pay, or a Hand Check, but not with a Credit Card)

oWhen the Payment is created, that Amount will be Debited (subtracted from) the the normal Accounts Payable Liability Account; and Credited (subtracted from) the designated Bank''s General Ledger Asset Account

oA Check may then be printed (an Epay executed or hand check written) for that designated Amount.

 

▪Print - This option on the Credit Card Register Form will open a Print Preview dialog which can Print this information, or Export this information to a PDF file.

 

15.Cash Flow Statement - This Statement of Cash Flows report is the latest addition to the Financial Statements & Reporting capabilities of the new General ledger System.

 

Cash Flow Statement - Preview tab

 

✓Internally, this report is generated based on the User designated Accounting Period that is to be reported.

A.The system can calculate Net Cash Flow for the following Accounting Periods:

1)Month - Provides the Cash Flow Statement Values for the most recent 3 Months ending in the As Of Date

2)Quarter - Provides the Cash Flow Statement Values for the most recent 3 Quarters ending in the As Of Date

3)Year - Provides the Cash Flow Statement Values for the most recent 3 Years ending in the As Of Date

B.The system calculates Net Cash Flow as follows:

1)Calculate the Operating Value (The Net Income from a selected Accounting Period + Change in Operating Activities from end of previous Accounting Period to end of current Accounting Period)

2)Then, subtract the Inventing Value (Change in Investing Activities from end of previous Accounting Period to the end of current Accounting Period)

3)Then, subtract the Financing Value (Change in Financing Activities from end of previous Accounting Period to end of current Accounting Period)

4)The result is the Net Cash Flow for the Accounting Period being reported.

 

❑What's Next?

A.Follow the instructions in the chapter designated in step 1. or 2. below, as appropriate:

1.If your Company is just starting to using the integrated MKMS General Ledger System module, read the General Ledger Start-up Overview chapter to get a better understanding of the steps required to implement this this New GL, or

2.If your Company is already using an older version of the MKMS General Ledger System module and is now upgrading to STARK 35,

a.Read the General Ledger Upgrade Overview chapter to get a better understanding of the steps required to convert to this New GL.

 

B.Then, enter (and/or update) the General Ledger Maintenance Entries, as required.