One moment please...
 
 
Exact Globe   
 

Release 380 : Storno entry for Profit and Loss ledgers

Background

Menu path

System/Settings/General ledger settings

Finance/General Ledger /Charts of GL

Background

Storno entry allows user to select positive or negative sign of a transaction to be shown in front of the value/amount.  It also allows user to debit or credit a transaction in reverse (for example, show a debit entry in the credit column) but this has to be set or maintained via the General ledger (GL) maintenance . Further enhancement will be implemented to display the P&L (Profit & Loss) transaction according to GL defined debit/credit or none with the correct sign of positive or negative which will reflects the amounts allocated on P&L General ledgers (their cumulative results and balances).  For example: With this, user now has the option to select Debit (+), Credit (-) or None (+/-) (applicable to P&L only), and depending on the original accounting logic, the positive / negative sign will change accordingly per user's selection for transaction in P&L. 

Scenario :

During the processing of a Sales Transaction, the following accounting logic will apply:

GL

Line Type

Debit

Credit

Debtor

Sales Invoice

1000

 

Revenue

Sale Invoice

 

1000

 

 

 

 

Now, the following can happen with the above accounting logic:

GL

Line Type

Amount

Debtor

Sales Invoice

+1000

Revenue

Sales Invoice

-1000

What has been changed

  • This setting for Reversal Profit and Loss general ledger accounts is available for the following legislations:

    • Polish (option 605)
    • Czech (option 606)
    • Slovakian (option 636)
    • This setting will always turned ON and not visible for Romanian legislation.

             

  • Reversal profit and loss general ledger accounts check box will only be enabled if the Reversing entry setting is turned ON. By default, Reversal profit and loss general ledger accounts setting is turned OFF.
  • In this new implementation, user expected the result on reflection of amounts allocated on P&L general ledgers (their cumulative results and balances) are properly reflected in the financial and fiscal reports. Therefore the functionality of reversal entries (storno) must be mainly reflected by the P&L type (cost or revenue), which leads the (debit/credit/none) side of its amount in effect. This means Balances Sheet general ledger display according to storno remains unchanged.

Changes to GL Maintenance

In GL maintenance (menu path Finance/General Ledger /Charts of GL), a new selection option: None  is added to the Balance field and is only applicable to P&L general ledgers only. 

     

  • This third option is available when the setting Reversal profit and loss general ledger accounts is turned ON.
  • This option is only applicable for 3 types of account: revenue, expenses and neutral accounts.
  • When the setting is turned OFF, the Debit/Credit nature must be automatically changed from NONE to follow the nature of GLs (Expense =Debit , Revenue = Credit, Neutral =Debit)

This new change is also shown on Results and Transaction section of GLs maintenance.

      

  1. Debit all amount in debit side

  2. Credit all amounts in credit side

  3. None – display as the GLs nature (Expense =Debit , Revenue = Credit, Neutral =Debit) For example :When the setting is switched OFF and the Revenue GL 8000 is define as none from the balance field will set as credit balance automatically which follows the accounting principle.

In all areas where double entries are displayed, the views of P&L GLs will be displayed according to the Debit/Credit/None definition in the GL maintenance as follows:

General Ledger Type Debit/Credit Definition GL Balance Normal Display Storno Display
      Transaction line Cumulative balance for GL

Transaction line

Cumulative balance for GL
Revenue Debit Debit (+ ) Debit

(+ ) Debit

 (+) Debit (+ ) Debit
Credit (+ ) Credit (+ ) Credit (-) Debit (-) Debit
  Credit Debit (+ ) Debit

(+ ) Debit

 (-) Credit (-) Credit
Credit (+ ) Credit (+ ) Credit (+) Credit (+) Credit
  None Debit (+ ) Debit

(+ ) Debit

(+) Debit

(+) Debit

Credit (+ ) Credit (+ ) Credit (+) Credit (+) Credit
Expenses Debit Debit (+ ) Debit (+ ) Debit (+) Debit (+) Debit
Credit (+ ) Credit (+ ) Credit (-) Debit (-)  Debit
  Credit Debit (+ ) Debit (+ ) Debit (-) Credit (-)  Credit
Credit (+ ) Credit (+ ) Credit (+) Credit (+)  Credit
  None Debit (+ ) Debit (+ ) Debit

(+) Debit

(+)  Debit

Credit (+ ) Credit (+ ) Credit (+) Credit (+)  Credit
Neutral Debit Debit (+ ) Debit (+ ) Debit (+) Debit (+)  Debit
Credit (+ ) Credit (+ ) Credit (-) Debit (-)  Debit
  Credit Debit (+ ) Debit (+ ) Debit (-) Credit (-)  Credit
Credit (+ ) Credit (+ ) Credit (+) Credit (+)  Credit
  None Debit (+ ) Debit (+ ) Debit

(+) Debit

(+)  Debit

    Credit (+ ) Credit (+ ) Credit (+) Credit (+)  Credit

Example on how the entries are presented when the setting Reversal profit and loss general ledger accounts is turned ON.

1. Create a Sales invoice with NEGATIVE differences written off to cost GL via Finance/Entries/Sales Journal. Cost of sales ,GLs account defined as debit balance in the GL maintenance .

  

    Entries created with the results as below:

Sales invoice with NEGATIVE differences written off to cost GL Normal Storno
DR CR DR CR
Debtor account - Balance Sheet X   X  
Creditor account (VAT) -Balance Sheet   X   X
Revenue account - Profit Loss   X   X
Cost of sales (defined as Debit) -Profit Loss   X -X  

Looking at the new functionality, the following scenarios is handled correctly in the debtor/creditors card for rest of entries as follows : -

  1. Sales invoice with POSITIVE differences written off to revenue GL

  2. Purchase invoice with NEGATIVE differences written off to cost GL

  3. Purchase invoice with POSITIVE differences written off to revenue GL

  4. Purchase invoice with Standard cost price classic -Where Invoice price < Standard price 

  5. Stock count

  6. Reversal entry

  7. Revaluation entry – Gains and losses, for both debtors and creditors.

a) Sales invoice with POSITIVE differences written off to revenue GL Normal Storno
DR CR DR CR
Debtor account - Balance Sheet X   X  
Creditor account (VAT) -Balance Sheet   X   X
Revenue account - PL   X   X
Revenue account (defined as Credit) - PL X     -X

b) Purchase invoice with NEGATIVE differences written off to cost GL

 Normal Storno
DR CR DR CR
Creditor account- Balance Sheet   X   X
Creditor account (VAT) -Balance Sheet X   X  
Cost  - PL X   X  
Cost (defined as Debit)  -PL   X -X  

c) Purchase invoice with POSITIVE differences written off to revenue GL

 Normal Storno
DR CR DR CR
Creditor account- Balance Sheet   X   X
Creditor account (VAT) -Balance Sheet X   X  
Cost  - PL X   X  
Revenue account (defined as Credit) -PL   X   -X

d) Purchase invoice with Standard cost price classic -Where Invoice price < Standard price 

Normal Storno
DR CR DR CR
Creditor account- Balance Sheet   83.3   83.3
Creditor account (VAT) -Balance Sheet 13.3   13.3  
Invoices to be received - Balance Sheet 80   80  
Price differences ( Expense type) (defined as Debit) -PL   10 -10  

e) Stock count

Normal Storno
DR CR DR CR
Cost of sales (defined as Debit) -PL

 

 80

-80

  
Stock -Balance Sheet

80

   80  

f) Reversal of reversal entry

Normal Storno
DR CR DR CR
Debtors -Balance Sheet 80     -80
Revenue (defined as Credit) -PL   80   80

g) Revaluation Gain entry

Normal Storno
DR CR DR CR
Debtor account - Balance Sheet 80   80  
Exchange Diff. (Defined Debit)  - PL   80 -80  
Revaluation Loss entry
Debtor account - Balance Sheet   80   80
Exchange Diff. (Defined Credit )  - PL 80     -80

2. The display of the entries is determined by the definition defined in the GL maintenance. Applications affected are:

2. The displaHow entries created will determine how the presentation made. Applications involve are:

i) Finance/ Accounts Receivable/Cards – Display All view

   Finance/ Accounts Payable /Cards – Display All view

  •  Filter by None via debtor card /creditor card

              

  •   Filter by GL - Debtors/Creditor card

            

  •   Filter by offset account - Debtors/Creditor card

                 

ii) Transactions /Our ref/ Your ref Buttons

When user click on the Transaction button. In the Entry screen shown, the Our ref or Your ref button can be clicked. This includes the display of double entries in the following menu paths where the Transactions, Our ref and Your ref buttons are available.

  •  Finance/Entries/Sales Journal

  •  Finance/Entries/Purchase Journal

  •  Finance/Entries/Bank Cash Journal

  •  Finance/Entries/General Journal

  •  Finance/General ledger/Select/Search

  •  Finance/General ledger/Analytical accounting

 

iii) Change Button

Changes required here is for reversal of Reversal entry. The scenarios mentioned above is again checked for display correctness in the Change button screen in the following views:

  • Line
  • Our ref
  • Your ref
  • Entry
  • Our ref./Entry

When the advance button is selected, the Transactions section will be shown.

The same functionality of the Change button can be started in the following menu path.

  •  Finance/Entries/General Journal - click on the Change button.
  •  Finance/General ledger/Select/Search - click on the Change button
  •  Finance/Accounts Receivable/Cards, All view Filter by None - click on the Change button
  •  Finance/Accounts Payable/Cards, All view Filter by None - click on the Change button
  •  Transaction/ Our ref/ Your ref buttons              

iv) Finance/General ledger/Cards - Card view  and All view (including the lines and totals)

       Revenue GL – Card view 

     

      The above display is also applicable to the resulting prints or exports from the GL cards.

  • Finance/General ledger/Cards - export report with the Export button (including the lines and totals)
  • Finance/General ledger/Cards - print report with Print the button (including the lines and totals)

v) Cost Center /Cost Unit Reports: Both Details and List Including the totals

     a) Finance/General ledger/Cost centers/units/ Cost center 

     b) Finance/General ledger/Cost centers/units/ Cost unit

               The selections of these reports affected are: Layout and Report = List /Detail

  • Group by GL

  • Group by Cost Centre or Cost Unit

                       c) Finance/General ledger/Cost centers/units/ Cost Centre Transaction

                  The double entries should be displayed according to the debit / credit definition defined in the GL maintenance.

vi) Finance /Reports/Interactive balance, in the Interactive Balance sheet, there are 4 views support this requirement.

a) Debit / Credit

     In this view, the GLs lines balances are displayed in the correct side. Cost of sales GL with debit balance are displayed correctly as negative Credits. The cumulative totals that will not be influence by the GLs debit/credit definition. The balance totals for each category will display according to the sum of all GLs within the category.

b) Debit / Credit /Balance - The results shown according to the Debit/ Credit Definition of GL.

        i )If GL defined as Credit

  • All amounts should be shown in Credit column and

  • The Balance should be shown as x,xxx C .

  • When GL has Debit balance  show Balance as  - x,xxx C

       ii) If GL defined as Debit ,

  • All amounts should be shown in Debit column and

  • The Balance should be shown as x,xxx D .

  • When GL has Credit  balance  show Balance as  - x,xxx D

c) Debit/ Credit/ Balance- Budget - The budget amount displaying as per the Debit/Credit definition of GL.

d) Balance - Amounts in balance column shown according to the Debit/ Credit Definition of GL.

       i)  If GL defined as Credit 

  • When GL has Credit balance should be shown as x,xxx C .

  • When GL has Debit balance  show Balance as  - x,xxx C

       ii) If GL defined as Debit

  • When GL has Debit balance should be shown as x,xxx D .

  • When GL has Credit balance  show Balance as  - x,xxx D

 

vii) Finance/ Report/ Balance /PL, the following views are affected: -

 a) Trial Balance - The balances shown according to debit /credit definition of GL.

     For P&L GLs only, show the amounts according to the debit/credit definition of the P&L GLs. The end result, only one amount will be shown either in the debit or credit column.

  • If the balance is Credit balance and the GL is defined with Debit it should show –x,xxx in the Debit column.

  • If the balance is Debit balance and the GL is defined with Credit it should show –x,xxx in the Credit column.

   b) Balance sheet - The GL balances will displayed according to the debit/ credit definition of each GL. The sub totals and Totals  is not Influenced by the debit/ credit definition of each GL.

   c) Period Balance Sheet - GL display is already according to the Debit/ Credit definition in GL maintenance.

viii) Posting Reports 

  • Finance/Entries/Report/ Processed –Print
  • Finance/Entries/Report/ Voided entries -Print
  • Finance/Entries/Report/To be Processed- Select Purchases/Sales Journal and the Zoom button 

ix) Finance/General ledger/Select/Search  

       All scenarios mentioned also to be applied in the following areas of select search:-

  • Finance/General ledger/ Select/Search - export the report with Export button

  • Finance/General ledger/ Select/Search - print the report with Print button

x) Finance/General ledger/Analytical accounting

         All scenarios mentioned also to be applied in the following areas of Analytical accounting:

  •  Browser (Applies to all grouping )
  •  Our ref/Your Ref
  •  Export of Browser (Applies to all grouping )

xi) Closing entries - Storno Closing entries will NOT require any change and existing behavior remains.

     Currently, when user processes P&L, the functionality of the Closing entries displayed as following:

      a) Expense GL

  • Debit end balance – P&L Closing entry will be displayed as positive Credit
  • Credit end balance – P&L Closing entry will be displayed as negative Credit

b) Revenue GL

  • Debit end balance – P&L Closing entry will be displayed as negative Debit
  • Credit end balance –P&L  Closing entry will be displayed as positive Debit

     c) Neutral GL

  • Debit end balance – P&L Closing entry will be displayed as positive Credit
  • Credit end balance –P&L  Closing entry will be displayed as positive Debit

         When the GL Debit / Credit definition =NONE, the display of the P&L  Closing entries will follows the existing Neutral GL.

     
 Main Category: Support Product Know How  Document Type: Release notes detail
 Category: Release Notes  Security  level: All - 0
 Sub category: Details  Document ID: 15.690.586
 Assortment: Exact Globe  Date: 09-05-2017
 Release: 380  Attachment:
 Disclaimer