Financial Management System

FINANCIAL MODULE IMPLEMENTATION OVERVIEW The financial module implementation requires three steps: 1) Master data definition 2) Recording the daily transactions 3) Running the Reports & Dashboards MASTER DATA DEFINITION 1) Organization Structure Define the organizational hierarchy by creating all the business units (Entities, Sectors, Departments, Warehouses, Locators, Work Centers, etc...) in a tree model. 2) Currencies Define all the currencies used in your daily financial transactions, and select the system main currency. 3) Financial Periods Define the financial years and months/quarters according to your organization\'s accounting system. 4) Chart of Accounts Define the chart of accounts in a hierarchal (tree) model by creating all the main/grouping accounts (Assets, Liabilities, Owners\' Equity, Revenue and Expenses), and drilling down till the leaf entries. 5) Cost Centers Define the cost/profit centers in a hierarchal (tree) model by creating all the main/grouping entries and drilling down till the actual cost centers (could be your projects, production lines, departments, or any other entity you would like to allocate costs and profits to) 6) Accounts-Cost Centers Assignment Assign a sub-set of your predefined cost centers to expenses/revenue accounts for automatic cost/profit allocation in your financial transactions. (Ex. Automatically allocating rent expense on specific cost centers) 7) Journal Types Define the journal types you are going to use to group your journal entries (manual or posted from other modules). These types are used for grouping, filtering and reporting purposes. 8) Payment Transaction Types Define the different payment methods for both incoming and outgoing payments transactions. 9) Banks Define all the Banks where your organization have open accounts or have transactions with. 10) Exchange Rates Update the exchange rates of the predefined currencies RECORDING THE DAILY TRANSACTIONS 1) Journal Entry This is the main form used to record all the accounting transactions and review all automatically posted journal entries from different modules. Using the double entry bookkeeping system, you can create any accounting transaction between different accounts defined in the chart of accounts, customers/suppliers and allocate any expense/revenue to the corresponding cost centers. 2) Payments Using this form, you will be able to record all your incoming and outgoing payments transactions. These transactions may use different payment means (Cash, Credit Card, Bank Transfer and Checks) or a combination of them. 3) Deposits You can use this form to deposit cash or checks/notes into your bank account. In the case of cash deposit, you increase your bank account balance and decrease your cash account balance. When you deposit a check, you change the state of this check from notes receivable to checks under collection. RUNNING THE REPORTS & DASHBOARDS 1) Account Statement This report lists all the transactions performed on a specific account with all corresponding information. 2) Trial Balance This report lists all the accounts with their opening and current balance. It gives you a summary with your accounts accumulated balance. 3) Income Statement (Profit & Loss Statement) The income statement lists all your expenses and revenues accounts and the difference between their totals (Net Income Summary) for a specific financial period. The P&L statement is very important because it show the profitability of your organization during a specific period of time. 4) Balance Sheet The Balance Sheet shows you the financial position of your organization at a specified date (a snapshot). It shows what your company owns and what it owes.