Tutorial "Advanced features"


Account Registers

A register can be viewed for any account, but the most helpful is the bank register, or a liability account register (such as a credit card). A register could be used to visualize the T-Accounts used in manual double entry accounting. It will let you see the activity for a particular account during a particular period. When a statement comes to you for a bank account, open the register for that account during that period and balance your account by marking the cleared transactions as such.


  1. Open the FredsFlowersA1 ledger

  2. Click the Register button.

Here is the bank statement that Freds Bank sent him.


Statement

12/31/1999


Freds

Bank



From:

12/1/99

To:

12/31/99


Account:

Fred






Date

Charge

Deposit

Description

Balance

11/31/99



Last statement balance

200.02

12/1/99


487.11

Deposit

687.13

12/12/99

450.22


Check 2000

236.91

12/15/99

15.33


Service Charge

221.58

12/20/99

150.44


Check 2001

71.14









Ending Balance

71.14


Notice that there is a Service charge on 12/15/99. You will need to enter this service charge into the General Journal.

  1. Click Go to Journal Screen

  2. Open the General Journal

  3. Choose New Transaction

  4. Enter the service charge using this data in the window that comes up.

Jnl

Date

Payee/Payer

Sub Ent

Account

Sub Acct

Debit

Credit

G

12/15/99

Freds Bank

B

Freds Bank



15

R: no

Memo:

Service charge

B

Misc Exp


15



  1. Now, go Back to the Register Window and enter the statement dates from the bank statement. 12-1-99 to 12-31-99

  2. Click Display Account Register


All activity for Freds Bank Account will be displayed in date order with the bank balance at each entry. You should recognize most of the columns as data you are familiar with. The column labeled Cld is the cleared column. This column marks a transaction as not cleared or cleared. An "x" stands for a cleared entry.

  1. Click the first empty button in the Cld column. It changes from " " to "x".

  2. Since Fred's Bank statement shows checks 2000 and 2001, the service charge, and the deposit, click the cleared field to show those four as "x".

  3. Check 2002 is outstanding, so leave it as " ".

  4. Click Reconcile


If successful, the next screen will show you the outstanding checks (2002) and a summary of what should be on the bank statement. Beginning balance - credits + debits = ending balance. 200.02 - 615.99 + 487.11 = 71.14



Sub Entities

Sub entities are a way for Fred to separate his personal and business expenses. We will setup some Sub entities for Fred in his ledger. From the Main Menu:

  1. Choose the ledger FredsFlowersA1 and click Open.

  2. Click the Sub Entities button at the top of the screen.


A table will be displayed with the sub entities that currently exist in the system. The sub entities work the same as the sub accounts. You can edit and delete them from here.

  1. Click Create Sub Entity.

  2. Enter Name: Business Code; B and click Create Sub Entity.

  3. Back up the browser and Enter

Name: Personal Code; P and click Create Sub Entity.


After these are created go back to the sub entities screen by

  1. Click Return to Ledger

  2. Click Sub Entities


Notice that the sub entities Personal and Business are now listed here.



New paradigm, Tax/NonTax Revenues and Expenses


This accounting system was developed with the idea of non tax related income and expenses in mind. A sole proprietor will have personal expenses that he may want to keep track of in addition to his itemized deductions. Any person or company can also purchase tax-free bonds, etc which produces tax free income. If your company has only taxable income and tax deductible expenses you can ignore this, since it will make no difference in the way you use the system. But, if these types of transactions apply to you, you will want to learn how to label them in the system.


1. Setting Tax/Non Tax Status

Follow these links from the main menu:

Program Configuration

Assign Tax/Non-Tax Status


  1. Select FredsFlowers from the list of ledgers and click Open Ledger.


The Revenue and Expense accounts are listed on the left. Only Revenues and Expenses are listed because these are the accounts in question.

If a Revenue account pertains to non taxable income the No should be checked. Most Revenue is taxable so most of them should have Yes checked.

Likewise, if an expense is tax deductible (such as a business expense) then the Yes should be checked, but if the expense is personal it is most likely not tax deductible and the No should be checked.


Let's look at some examples.

  1. Create these accounts in the system. You may want to abbreviate some of the words as in the second column. Refer to Tutorial 1, Section 4 if you need help.


Account

Account Name

Number

Type

Tax Free Money Market Interest Revenue

Tax Free Mny Mkt Interest Rev

4448


Interest Rev

Dividend Revenue

Dividend Rev

4665

Interest Rev

Office Supplies Expense

Office Supplies Exp

5778

Expense

Groceries Expense

Groceries Exp

5336

Expense


  1. Assign the accounts to the FredsFlowersA1 Ledger. Refer to Tutorial 1, Section 3 if you need help.

  2. Follow these links from the main menu:

Program Configuration

Assign Tax/Non-Tax Status

  1. Sellect FredsFlowers from the list of ledgers and click Open Ledger.


A list of accounts opens. Let's examine each account that we just created one at a time.


Tax Free Money Market Interest Revenue

Since this is tax free revenue the income is not taxable.

  1. Click No next to the account Tax Free Mny Mkt Interest Rev



Dividend Rev

This is normal dividend income that is taxed just like other income.

  1. Click Yes next to the account Dividend Rev



Office Supplies Exp

This is a business expense and is tax deductible.

  1. Click Yes next to the account Office Supplies Exp


Groceries Exp

This is a personal expense that is not deductible on your taxes.

  1. Click No next to the account Groceries Exp


  1. Click Update accounts.


The accounts are now set so that they will properly show in reports.


  1. Go back to the Main Menu

  2. Open FredsFlowersA1 to run these reports.

  3. Click Reports

  4. Choose Bookkeeping, Select Report

  5. Choose Income Statement, Customize Report

  6. Choose 1999 and Run Report



Copyright (c) 2001 HLR
Permission is granted to copy, distribute and/or modify this document under the terms of the GNU Free Documentation License, Version 1.1; A copy of the license is available at http://www.gnu.org/licenses/licenses.html#FDL.

Updated: $Id: advanced_tutorial.html,v 1.1.1.1 2001/08/09 19:03:02 moreejt Exp $