B. E. S. T. B U S I N E S S M A N A G E M E N T Owner's Operating Manual T A B L E O F C O N T E N T S ----------------------------------- PREFACE Chapter 1 INTRODUCTION TO B.E.S.T. BUSINESS MANAGEMENT Chapter 2 SYSTEM STARTUP Preparing The Equipment ............................. 2-1 Equipment care ................................... 2-1 Diskette care .................................... 2-1 Diskette preparation ............................. 2-2 Loading The B.E.S.T. Business Management Program .... 2-3 B.E.S.T. Business Management Menu Selections ........ 2-6 Accounting data base selections .................. 2-6 General Ledger .............................. 2-6 Accounts Receivable ......................... 2-6 Accounts Payable ............................ 2-7 Inventory ................................... 2-7 Services .................................... 2-7 Business Functions ............................... 2-8 Purchase orders ............................. 2-9 Receiving ................................... 2-9 Check writer ................................ 2-9 Invoicing and order processing .............. 2-9 Receive customer payments ................... 2-9 Sales returns .............................. 2-10 Purchase returns ........................... 2-10 Setup ........................................... 2-11 Company information ........................ 2-11 System interface ........................... 2-11 Change colors .............................. 2-11 Special System Features ............................ 2-12 Screen Keys (gadgets) ........................... 2-12 Error messages .................................. 2-12 Getting Started .................................... 2-14 Company Information ............................. 2-14 System interface ................................ 2-16 Default General Ledger accounts ............ 2-16 Auto/stand alone General Ledger selection .. 2-17 Sales tax rate ............................. 2-18 Business form numbers ...................... 2-18 Change colors ................................... 2-18 Color control screen ....................... 2-19 Changing screen colors ..................... 2-19 Saving selected screen colors .............. 2-20 Chapter 3 GENERAL LEDGER Introduction To The General Ledger .................. 3-1 What is a General Ledger ......................... 3-1 An aid to accounting ........................ 3-1 An information system ....................... 3-1 A management discipline ..................... 3-2 The B.E.S.T. General Ledger management system .... 3-2 How can the B.E.S.T. General Ledger benefit your business? ................................... 3-3 Simplify financial data collection .......... 3-3 Produce customized financial statements ..... 3-3 Reduce bookkeeping and accounting costs ..... 3-4 The General Ledger System Menu ...................... 3-5 Chart of accounts ................................ 3-6 Transactions ..................................... 3-6 Financial report writer .......................... 3-6 Financial reports ................................ 3-6 Set G/F dates .................................... 3-6 Preparing Your Chart Of Accounts .................... 3-7 Preparing your company calendar .................. 3-9 Managing the accounts ........................... 3-10 Adding new accounts ........................ 3-12 Editing existing accounts .................. 3-15 Deleting accounts .......................... 3-21 Printing your chart of accounts ................. 3-22 Entering And Managing Account Transactions ......... 3-26 Entering transactions ........................... 3-28 Sales journal .............................. 3-28 Purchases journal .......................... 3-32 Cash receipts journal ...................... 3-34 Cash disbursements journal ................. 3-35 General journal ............................ 3-37 Editing current month transactions .............. 3-39 Printing transaction journal .................... 3-42 Printing transaction audit trail reports ........ 3-49 Posting transactions to the General Ledger accounts ........................................ 3-52 Monthly closing ................................. 3-54 Preparation steps .......................... 3-54 The effect of closing on the General Ledger. 3-55 Closing a month ............................ 3-55 Preparing Custom Financial Reports ................. 3-58 Report writer design features ................... 3-58 Report title ............................... 3-60 Account entries ............................ 3-61 Normal balance (NB) ........................ 3-61 Total level (TL) ........................... 3-61 Description ................................ 3-61 Dot commands ............................... 3-62 Creating a new report ........................... 3-62 Underlining amount columns ................. 3-63 Account summaries .......................... 3-63 Positioning amount columns ................. 3-64 Detailed account listing ................... 3-64 Things to remember ......................... 3-65 Printing the report listing ..................... 3-66 Editing an existing report ...................... 3-69 Deleting an existing report ..................... 3-71 Printing Financial Reports ......................... 3-73 Setting up the report format .................... 3-73 Monthly reports ................................. 3-75 Single month report ........................ 3-75 Monthly comparisons ........................ 3-78 Three month reports ........................ 3-80 Account numbers ............................ 3-82 Percent of total ........................... 3-84 Quarterly reports ............................... 3-86 Yearly reports .................................. 3-89 Income statements ............................... 3-92 Balance sheets .................................. 3-96 Special purpose reports ........................ 3-100 Chapter 4 ACCOUNTS RECEIVABLE Introduction To Accounts Receivable Management ...... 4-1 What is Accounts Receivable management ........... 4-1 An information system ....................... 4-1 A management discipline ..................... 4-2 A communications process .................... 4-2 The B.E.S.T. Business Management Accounts Receivable system ........................... 4-3 How can the B.E.S.T. A/R system benefit your business? ................................... 4-3 Improved customer account strategies ........ 4-4 Improved performance measurement ............ 4-4 Improved account tracking ................... 4-4 Improved customer service ................... 4-4 Improved cash flow .......................... 4-5 Accounts Receivable system menu ..................... 4-6 Add new customers ................................ 4-7 Edit existing customers .......................... 4-7 Monthly Processing ............................... 4-7 Reports .......................................... 4-7 Payment terms .................................... 4-7 Statement messages ............................... 4-7 System menu ...................................... 4-8 Accounts Receivable Setup Files ..................... 4-9 Payment Terms ................................... 4-10 Discount percent ........................... 4-11 Discount days .............................. 4-11 Net days ................................... 4-11 Late percent ............................... 4-11 Description ................................ 4-12 Statement Messages .............................. 4-12 Establishing And Managing Customer Accounts ........ 4-17 Adding new customers ............................ 4-18 General customer information ............... 4-18 Current account condition .................. 4-19 Customer credit limit ...................... 4-19 Customer setup items ....................... 4-20 Editing existing customer files ................. 4-23 Customer information ....................... 4-23 Transactions ............................... 4-24 Deleting accounts ............................... 4-26 Accounts Receivable Monthly Processing ............. 4-27 Advancing account aging ......................... 4-27 Applying finance charges ........................ 4-30 Fixed amount ............................... 4-31 Percent of current balance ................. 4-33 Percent of average daily balance ........... 4-33 Calculating amounts due ......................... 4-34 Preparing and printing statements ............... 4-36 Collapsing customer account transactions ........ 4-40 Clearing account 'to-date' accumulations ........ 4-41 Printing Accounts Receivable Reports ............... 4-45 Account aging reports ........................... 4-46 Sales reports ................................... 4-47 Account summary report .......................... 4-49 Customer list ................................... 4-50 Detail report ................................... 4-50 Mailing labels .................................. 4-50 System interface test report ....................... 4-56 Chapter 5 ACCOUNTS PAYABLE MANAGEMENT Accounts Payable System Menu ........................ 5-1 Add new vendors .................................. 5-2 Edit existing vendors ............................ 5-2 Reports .......................................... 5-2 Collapse transactions ............................ 5-2 Clear to-date amounts ............................ 5-2 Payment terms .................................... 5-3 System menu ...................................... 5-3 Accounts Payable Payment Terms ...................... 5-4 Discount percent ................................. 5-5 Discount days .................................... 5-5 Net days ......................................... 5-6 Late percent ..................................... 5-6 Description ...................................... 5-6 Establishing And Managing Vendor Accounts ........... 5-8 Adding new vendors ............................... 5-8 General vendor information .................. 5-9 Current account condition .................. 5-10 On order/credit limit/purchase history ..... 5-10 Terms and G/L account ...................... 5-11 Editing existing vendor files ................... 5-12 Vendor information ......................... 5-13 Transactions ............................... 5-14 Deleting accounts ............................... 5-16 Printing Accounts Payable Reports .................. 5-18 Account summary report .......................... 5-20 Vendor list ..................................... 5-20 Detail report ................................... 5-20 System interface test report .................... 5-20 Mailing labels .................................. 5-21 Collapsing Vendor Transactions ..................... 5-22 Clearing Account 'To-Date' Accumulations ........... 5-24 Chapter 6 INVENTORY MANAGEMENT Introduction To Inventory Management ................ 6-1 What is inventory management? .................... 6-1 An information system ....................... 6-1 A communications process .................... 6-2 A management discipline ..................... 6-2 A cost control system ....................... 6-2 B.E.S.T. Business Management inventory activity .. 6-3 How can the B.E.S.T. system benefit your Business? ........................................ 6-4 Improved purchasing and stocking strategies . 6-4 Improved inventory performance measures ..... 6-5 Improved inventory tracking ................. 6-5 Improved customer service ................... 6-5 Reduced inventory cost ...................... 6-5 Inventory Management System Menu .................... 6-6 Add new inventory items .......................... 6-6 Edit existing inventory items .................... 6-7 Set up product groups ............................ 6-7 Report writer .................................... 6-7 Reports .......................................... 6-7 Clear to-date amounts ............................ 6-7 System menu ...................................... 6-7 Establishing Inventory Product Groups ............... 6-8 Product group numbers ............................ 6-9 Description ...................................... 6-9 General Ledger accounts ......................... 6-10 Inventory account .......................... 6-10 Cost of goods sold account ................. 6-10 Sales account .............................. 6-10 Sales returns account ...................... 6-10 Printing product group listings ................. 6-11 Entering And Managing Inventory Information ........ 6-13 Adding new inventory items ...................... 6-13 Editing existing inventory items ................ 6-17 Deleting inventory items ........................ 6-18 Preparing Custom Inventory Reports ................. 6-20 Creating a custom report ........................ 6-21 Report title ............................... 6-22 Selecting reporting fields ................. 6-22 Determining limits for selection ........... 6-23 Selecting fields for sorting ............... 6-23 Editing an existing report ...................... 6-24 Deleting an old report .......................... 6-25 Printing Inventory Reports ......................... 6-27 Standard reports ................................ 6-29 Custom reports .................................. 6-46 System interface test report .................... 6-49 Clearing To-Date Fields ............................ 6-52 Chapter 7 SERVICE MANAGEMENT Introduction To Service Management .................. 7-1 What is service management ....................... 7-1 An information system ....................... 7-1 A communications process .................... 7-2 A management discipline ..................... 7-2 A cost control system ....................... 7-2 The B.E.S.T. Service Management system ........... 7-3 How can the B.E.S.T. S/M system benefit your Business? ........................................ 7-4 Improved service activity strategy development ................................. 7-4 Improved service performance measures ....... 7-4 Improved service tracking ................... 7-5 Improved customer service ................... 7-5 Service Management System Menu ...................... 7-6 Add new services ................................. 7-6 Edit existing services ........................... 7-7 Set up service groups ............................ 7-7 Report writer .................................... 7-7 Reports .......................................... 7-7 Clear to-date amounts ............................ 7-7 System menu ...................................... 7-7 Establishing Service Groups ......................... 7-8 Service group numbers ............................ 7-9 Description ...................................... 7-9 General Ledger accounts ......................... 7-10 Sales account .............................. 7-10 Sales returns account ...................... 7-10 Printing service group listings ................. 7-11 Entering And Managing Service Information .......... 7-12 Adding new services ............................. 7-12 Editing existing services ....................... 7-15 Deleting services ............................... 7-16 Preparing Custom Service Reports ................... 7-19 Creating a new custom report .................... 7-20 Report title ............................... 7-22 Selecting reporting fields ................. 7-22 Determining limits for selection ........... 7-22 Selecting fields for sorting ............... 7-23 Editing an existing report ...................... 7-24 Deleting an old report .......................... 7-25 Printing Service Reports ........................... 7-27 Standard reports ................................ 7-28 Custom reports .................................. 7-32 System interface test report .................... 7-35 Clearing To-Date Fields ............................ 7-38 Chapter 8 PURCHASE ORDERS Adding New Purchase Orders .......................... 8-1 Editing Existing Purchase Orders .................... 8-6 Printing Purchase Orders ............................ 8-6 Posting Purchase Orders ............................. 8-9 Chapter 9 RECEIVING Receiving Invoices .................................. 9-1 Receive Bills ....................................... 9-6 Chapter 10 CHECK WRITING Preparing And Printing Checks ...................... 10-1 Entering new checks ............................. 10-1 Editing existing checks ......................... 10-4 Printing checks ................................. 10-5 Posting and clearing checks ..................... 10-8 Chapter 11 ORDER PROCESSING Creating And Managing Customer Orders .............. 11-1 Adding new customers ............................ 11-1 Adding new orders ............................... 11-4 Editing existing orders ......................... 11-8 Updating orders to Inventory and Accounts Receivable ...................................... 11-9 Chapter 12 INVOICING Producing and Posting Invoices ..................... 12-1 Printing invoices ............................... 12-1 Posting invoices ................................ 12-5 Point-of-sale invoices .......................... 12-6 Chapter 13 RECEIVING PAYMENTS Receiving Customer Payments ........................ 13-1 Chapter 14 SALES RETURNS Cash Sales Returns ................................. 14-1 Credit Sales Returns ............................... 14-6 Chapter 15 PURCHASE RETURNS Purchase Returns ................................... 15-1 APPENDIX Appendix A: Data Dictionary Appendix B: Keyboard Control Features Appendix C: B.E.S.T Screen Key Descriptions Appendix D: Interface Relationships Appendix E: Equipment Requirements B.E.S.T. BUSINESS MANAGEMENT INSTALLATION PROCESS This section covers the steps you will need to follow to prepare the B.E.S.T. Business Management program and/or a data disk for operation. The installation process covers one disk drive, two disk drives and hard drive options. ----------------------------------------------------------------------------- SINCE THE MASTER DISK SUPPLIED WITH THE B.E.S.T. BUSINESS MANAGEMENT PACKAGE IS NOT COPY PROTECTED, YOU MAY FOLLOW ALL COPY PROCEDURES LISTED BELOW WITHOUT SPECIAL OPERATIONS. PLEASE BE AWARE OF COPY RIGHT RESTRICTIONS LISTED IN THE FRONT SECTION OF THE MANUAL. ----------------------------------------------------------------------------- CREATING B.E.S.T. BUSINESS MANAGEMENT BACKUP DISKS - ----------------------------------------------------------------------------- DO NOT USE THE MASTER DISK SUPPLIED WITH B.E.S.T. BUSINESS MANAGEMENT FOR ANY PROGRAM OPERATION. YOU MUST PRESERVE IT, WITHOUT CHANGE, FOR FUTURE USE. ----------------------------------------------------------------------------- You should protect your master B.E.S.T. Business Management disk from loss or damage by producing two (2) backup copies. Use only high quality disks such as LABELED Fuji or Sony dual-sided 880K micro disks. We advise against using non-labeled generic disks of any kind. ---------------------------------------------------------------------------- DO NOT INTERRUPT ANY AMIGA PROCESS WHILE THE DISK DRIVE INDICATOR LIGHT IS ON (RED). ---------------------------------------------------------------------------- The following steps may be used for producing a backup disk. a) Place the write protect tab on the B.E.S.T. Business Management master disk in the OPEN (write protected) position. b) Power-up the Amiga with a Version 1.2 Kickstart disk in the internal disk drive (drive df0). c) Replace the Kickstart disk with the master B.E.S.T. Business Management disk when the Workbench disk is requested. d) Place the B.E.S.T. Business Management master disk in the internal Amiga disk drive (drive df0) and follow the steps listed in (e) OR (f) below. e) If you are using a SINGLE disk drive system, use the following process: 1) Type -- diskcopy df0: to df0: [RETURN] 2) Replace the B.E.S.T. Business Management master disk with a blank disk when requested to do so by a screen message. 3) Follow the disk swapping instructions on the screen until finished. 4) Repeat the process from (d) to (e-4) for your second backup. 5) Store the master B.E.S.T. Business Management disk and a backup copy in a location which is safe from heat and static electricity. f) If you are using a TWO DISK DRIVE system; use the following process: 1) Place a blank disk in the external disk drive (drive df1). 2) Type -- diskcopy df0: to df1: [RETURN] 3) Allow the copy process to complete without interrup- tion. 4) Repeat the process in (d) and (f-1 thru 4) for your second backup. 5) Store the master B.E.S.T. Business Management disk and a backup copy in a location which is safe from heat and static electricity. PREPARING A SINGLE DISK DRIVE PROGRAM/DATA DISK - This installation section contains the steps required to prepare a working B.E.S.T. Business Management disk for use with a single Amiga disk drive (built-in micro disk). The program AND data will reside on the same disk in a single disk drive operation. The programs used for this automatic installation process are included in the 'S' directory on the master B.E.S.T. Business Management disk. These files must NOT be altered on the master disk. ----------------------------------------------------------------------------- DO NOT USE THE MASTER DISK SUPPLIED WITH THE B.E.S.T. BUSINESS MANAGEMENT PACKAGE FOR ANY PROGRAM OPERATION. ----------------------------------------------------------------------------- The following steps will produce a working copy of B.E.S.T. Business Management for use with a single Amiga disk drive. a) Use a disk produced from the backup process in the prior section as a working copy of B.E.S.T. Business Management. Place the write protect tab on the working copy of your B.E.S.T. Business Management disk in the CLOSED (unprotected) posi- tion. b) Insert the working copy disk into the internal disk drive. c) Type -- execute 1-drive [RETURN] d) Allow the automatic installation process to complete. (Wait for the red disk drive light to turn off.) e) Re-boot the installed BBM disk by pressing the [CTRL], left [Amiga] and right [Amiga] keyboard keys, simultaneously. f) The B.E.S.T. Business Management date screen will be presented when automatic program loading has completed. You are now ready to begin using B.E.S.T. Business Management as a single disk drive system. Refer to the "LOADING THE B.E.S.T. BUSINESS MANAGEMENT PROGRAM" section of the manual to continue with B.E.S.T. Business Management operations. PREPARING A TWO DRIVE PROGRAM DISK AND DATA DISK - The following steps will produce a working copy of the B.E.S.T. Business Management program and a data disk for use with an Amiga two disk drive system. The program will reside on the disk used in the internal drive system. The data will reside on the disk used in the external disk drive. a) Format (initialize) a new or re-usable disk with one of the two processes listed below. 1) Follow the Amiga disk formatting process through Work- bench. 2) Use the alternate process listed below from the CLI screen on the B.E.S.T. Business Management master disk (backup copy). - Power-up the Amiga with a Version 1.2 Kickstart disk in the internal disk drive (drive df0). - Replace the Kickstart disk with the master B.E.S.T. Business Management disk (backup) when the Workbench disk is requested. - When the CLI prompt is presented, place a new or re-usable disk in the external drive (df1). The disk must NOT be write protected. - Type -- format drive df1:name "bbm-data" - Type -- [RETURN] - Allow the automatic installation process to complete. (Wait for the red disk drive light to turn off.) - The disk is now ready for BBM data. b) Use a disk produced from the backup process in the prior section as a working copy of B.E.S.T. Business Management. Place the write protect tab on the working copy of B.E.S.T. Business Management disk in the CLOSED (unprotected) posi- tion. c) Insert the working copy of the program disk into the internal disk drive and re-boot by pressing the [CTRL], left [Amiga] and right [Amiga] keys, simultaneously. d) Insert the new data disk in the external disk drive. e) Type -- execute 2-drives [RETURN] f) Allow the automatic installation process to complete. (Wait for the red disk drive light to turn off.) g) Re-boot the installed B.E.S.T. Business Management disk by pressing the [CTRL], left [Amiga] and right [Amiga] keyboard keys, simultaneously. h) The B.E.S.T. Business Management Date screen will be presented when automatic program loading has completed. You are now ready to begin using B.E.S.T. Business Management as a two disk drive system. Refer to the "LOADING THE B.E.S.T. BUSINESS MANAGEMENT PROGRAM" section of the manual to continue with B.E.S.T. Business Management operations. CONVERSION FROM A ONE DRIVE TO A TWO DRIVE SYSTEM - The steps in this section are needed to prepare a two disk drive program disk and to move existing data files from a current single disk to a new data disk. Only programs will reside on the new B.E.S.T. Business Management program disk. Only data files will reside on the new data disk. The following steps will produce your new two drive system. a) Make a backup copy of your working B.E.S.T. Business Management disk before making the conversion. Use the backup process described in a prior section or use the regular Amiga Workbench backup process. b) Format a new data disk using either of the formatting alternatives listed above. c) Boot your current B.E.S.T. Business Management (single disk) and exit the program through the program menu [EXIT] selection to the CLI screen. d) Insert the new data disk in the external disk drive (df1). e) Type -- copy df0:bbm-data to df1: [RETURN] f) Wait for the file copy process to complete. g) Type -- delete df0:bbm-data all [RETURN] h) Type -- execute 2-drives [RETURN] i) Re-boot the system with the [CTRL], left [Amiga] and right [Amiga] keys to begin operation with two drives. PREPARING A HARD DRIVE B.E.S.T. BUSINESS MANAGEMENT SYSTEM - The installation section contains the steps required to prepare a working B.E.S.T. Business Management disk for use with an external hard drive. The program AND data will reside on the hard disk under the same directory. You may wish to create a script file in the 'S' directory for automatic program loading. Refer to your Amiga DOS documentation for developing script files. CREATING A NEW HARD DISK DRIVE OPERATION. This section provides instructions for preparing a hard disk drive system if you are using B.E.S.T. Business Management for the first time. It assumes you are familiar with basic Amiga DOS operations. The following steps will be needed to prepare B.E.S.T. Business Management for use on a hard drive. a) Create a B.E.S.T. Business Management directory on the hard drive. Type -- makedir dh0:bbm [RETURN] b) Copy the program file (BBM) to the hard drive BBM directory. Type -- copy df0:bbm to dh0:bbm/bbm [RETURN] c) Move to the BBM directory on the hard drive Type --cd dh0:bbm [RETURN] d) Begin operation of B.E.S.T. Business Management as a hard disk drive operation. CONVERTING FROM AN EXISTING MICRO DISK SYSTEM. If you are currently operating B.E.S.T. Business Management on micro disks, you will need to perform a few simple processes to convert to a hard drive system. You will need to: a) Create a B.E.S.T. Business Management directory on the hard drive. Type -- makedir dh0:bbm [RETURN] b) Copy the program file (BBM) to the hard drive BBM directory. Type -- copy df0:bbm to dh0:bbm/bbm [RETURN] c) Copy all existing B.E.S.T. Business Management data files to the hard drive BBM directory. d) Move to the BBM directory on the hard drive Type -- cd dh0:bbm [RETURN] e) Begin operation of B.E.S.T. Business Management as a hard disk drive operation. Type -- BBM [RETURN] B. E. S. T. B U S I N E S S M A N A G E M E N T A NEW GENERATION OF BUSINESS MANAGEMENT SOFTWARE - Thank you for purchasing B.E.S.T. Business Management. The goals of Business Electronics Software and Technology, Inc. are to develop business management software which is: RELIABLE PROFESSIONAL QUALITY EASY TO LEARN TO USE EASY TO CONTINUE TO USE B.E.S.T. BUSINESS MANAGEMENT was developed on the Amiga, for the Amiga and tested thoroughly to assure system reliability. To further assure a quality product, B.E.S.T., Inc. uses disks which meet the highest standards of quality, and duplication is performed under strict quality control conditions. B.E.S.T. BUSINESS MANAGEMENT is designed to satisfy all generally accepted management principles. In cases where more than one method is generally acceptable, however, we have chosen that method which appears to be the most widely used. B.E.S.T. BUSINESS MANAGEMENT does not require technical expertise. For an effective learning process, however, practice and experience with the system is necessary. We have attempted to make that learning experience as productive as possible through use of English language system menus, uncluttered screens and a well illustrated manual. We have made B.E.S.T. BUSINESS MANAGEMENT an easy to use business tool by separating Business Functions -- the management activities which you perform on a daily basis -- from Accounting Functions, and by automating most of the Accounting Functions. [1-1] ACCOUNTING FUNCTIONS Accounting functions in this system are: Accounts Receivable Accounts Payable General Ledger Inventory Management Services Management Each of these accounting functions is a data base, not a separate program module. They are the foundation upon which your system will be built. Before B.E.S.T. BUSINESS MANAGEMENT can be used, those data bases must be prepared. Account numbers, descriptions, customer names, service categories and related data must be organized and entered onto your data disk. Once the data collection and entry process is completed, your use of those data bases will be necessary only for entries such as depreciation expense, new customers or new suppliers. Other accounting activities. i.e. crediting and debiting accounts or adjusting inventory -- those activities that need to be done when a business transaction is completed -- are done AUTOMATICALLY through the Business Management Functions portion of B.E.S.T. BUSINESS MANAGEMENT. Both pre-formatted reports, and reports which you create and save, are available from the Accounting Functions portion of B.E.S.T. BUSINESS MANAGEMENT. [1-2] BUSINESS FUNCTIONS Business Functions in B.E.S.T. BUSINESS MANAGEMENT are: Order Processing/Invoicing Purchase Orders Receiving Payments Receiving Sales Returns Purchase Returns Billings Check Writing These Business Function areas are where most of your use of B.E.S.T. BUSINESS MANAGEMENT will occur. Each of the Business Functions is designed to be used the way activities happen during a "normal" business day. You accept customer orders, ship products and assure that your inventory records reflect that sale. You receive payments from customers and apply those payments against open invoices. Customers return goods to you. You receive goods from suppliers and assure that your inventory records reflect those receipts. You pay your suppliers. You return goods to your suppliers. B.E.S.T. BUSINESS MANAGEMENT automatically adjusts your inventory and updates the appropriate Accounting Function(s) when you complete one of the Business Functions. Those automatic adjustments and updates are performed almost instantaneously, because being truly integrated, there are no modules on separate disks. [1-3] A COMPLETE SOLUTION B.E.S.T. BUSINESS MANAGEMENT is designed to provide you with an inexpensive way to take advantage of current computer technology. It is an extremely fast, flexible, reliable and cost effective means of computerizing your business. And business forms (with double window envelopes) are available from B.E.S.T., Inc. B.E.S.T. BUSINESS MANAGEMENT will not require that you invest large amounts of your time and money learning how to use it, because it is designed to be used by non-professionals. Yet it offers performance seldom found in wither custom software or in much more expensive software designed exclusively for the use of computer or accounting professionals. Perhaps most importantly, a phone call to 1-800-BEST will get you answers to any questions you may have concerning your use of B.E.S.T. BUSINESS MANAGEMENT. We would be pleased to receive your comments about B.E.S.T. BUSINESS MANAGEMENT, and sincerely hope that it satisfies your expectations. [1-4] PREPARING THE EQUIPMENT The purpose of this section is to provide basic information on equipment care to assure proper operation and a quick startup. EQUIPMENT CARE - The combination of equipment and software required for B.E.S.T. BUSINESS MANAGEMENT has been designed to be as trouble-free and fail-safe as possible. There are a few things, though, which need to be emphasized regarding the reasonable care needed to assure the trouble-free service you require. The Amiga hardware used by B.E.S.T. Business Management is reliable equipment but should be respected as complex, electro-mechanical devices. Each piece of hardware should be handled with care at all times with service of any kind left to an authorized Commodore service center or a qualified computer technician. DISKETTE CARE - All diskettes or 'disks', whether they are supplied with B.E.S.T. Business Management or purchased separately, should be handled and stored with care at all times. All disks must be kept free from dirt, smoke, lint, etc. The disk surfaces should never be touched or 'cleaned' with any chemical or cloth. All disks should be stored in a disk protective disk storage device when not in use. Since the disks are magnetic data storage devices, they should be kept away from static generating equipment, including color monitors and T.V. sets. ---------------------------------------------------------------------------- WE HIGHLY RECOMMEND THAT YOU MAKE A BACKUP COPY OF THE PROGRAM DISK, AND ANY DATA DISKS, USING THE DISK COPY PROGRAM WHICH IS INCLUDED ON YOUR WORKBENCH DISK. WE RECOMMEND - LABELED - FUJI, SONY, OR SENTINAL DOUBLE-SIDED, 880K MICRO DISKS FOR USE WITH B.E.S.T. BUSINESS MANAGEMENT. _____________________________________________________________________________ [2-1] DISKETTE PREPARATION - Since B.E.S.T. Business Management includes only a program disk, you will need to decide how you wish to arrange for data storage. Smaller businesses may can operate a single disk small numbers of inventory items and customer accounts are required. A single disk operation can be prepared by simply making a copy of the master program disk and using the copy as the operating disk. All data files will be created on the disk, as needed, by the main program. If you wish to operate with a second drive unit (recommended), the program disk should be copied and a blank data disk formatted in preparation for data. The program disk will be used in drive df0 and the data disk will be used in df1. A hard system will operate under normal directory processes with the program and data files in the same directory. Refer to the file management insert included with your B.E.S.T. Business Management system for specific data disk preparation information. [2-2] LOADING THE B.E.S.T. BUSINESS MANAGEMENT PROGRAM The B.E.S.T. Business Management system disk contains a fully integrated program prepared for use with Amiga KICKSTART and WORKBENCH version 1.2. The program loads automatically from KICKSTART 1.2. B.E.S.T. Business Management loads from the internal disk drive (df0) after Amiga KICKSTART has been loaded. Remove the KICKSTART disk and insert the B.E.S.T. Business Management program disk when the screen requests you to load Amiga WORKBENCH (Diagram #2-1). B.E.S.T. BUSINESS MANAGEMENT will load automatically and produce the Date screen shown in Diagram #2-2. (Do not load Workbench.) [2-3] B.E.S.T. BUSINESS MANAGEMENT --------------------------------------------------------------- A Truly Integrated Accounting System ORDER --> INVENTORY <-- PURCHASE PROCESSING / SERVICES \ ORDERS \/ _/ .......... \__ \/ INVOICING --> <--- RECEIVING \/ GENERAL \/ ACCOUNTS --> LEDGER <-- ACCOUNTS RECEIVABLE /\ PAYABLE \/ / \ \/ STATEMENTS ______/ \________ CHECKS Copyright 1986, Business Electronics Software & Technology Inc Today's Date 06/16/86 --------------------------------------------------------------- Diagram #2-2 The B.E.S.T. Business Management program disk should be inserted into the disk drive unit with the written heading on the disk cover facing up and facing toward you. The disk must be inserted completely into the entry slot before the latch is closed to ensure the disk is not damaged when locked into place. Enter the current date in the format shown in the diagram. This date will be used for all activities such as invoicing, Purchase Orders, Statements, reports, etc. The current date will remain in force until the next startup session. After the date has been entered, a 'Return' will bring up the B.E.S.T. Business Management Main Menu shown in Diagram #2-3. [2-4] B.E.S.T. BUSINESS MANAGEMENT COPYRIGHT 1986 -------------------------------------------------- GENERAL LEDGER ACCOUNTS RECEIVABLE ACCOUNTS PAYABLE INVENTORY SERVICES BUSINESS FUNCTION SETUP EXIT Diagram #2-3 [2-5] B.E.S.T. BUSINESS MANAGEMENT MENU SELECTIONS The selections on the Main Menu are made up of five (5) data base areas, a Business Function selection and a Setup process. The data base areas contain information and reporting processes for managing the major accounting and inventory management systems: General Ledger, Accounts Receivable, Accounts Payable, Inventory Management and Services Management. Business Functions are the day-to-day processes used to run the business such as taking orders, invoicing, receiving payments, ordering materials, writing checks, etc. The Setup process is used to record your company name and address, establish 'default' General Ledger account numbers for automatic operations and to setup custom screen colors. A brief overview of each of these areas is included below. ACCOUNTING DATA BASE SELECTIONS - GENERAL LEDGER. The General Ledger selection is a full service General Ledger system which includes: a) Chart of Accounts setup and editing. b) Transaction management and monthly closing. c) Customized financial report writing. d) Financial report printing. e) General Ledger calendar. The General ledger can be used as a stand-alone ledger system, if desired, but it is designed to be used in conjunction with the Business Functions as a semi-automated accounting system. ACCOUNTS RECEIVABLE. The Accounts Receivable selection is one of the most complete Receivables management systems available on any PC level computer. Accounts Receivable includes: [2-6] a) Customer account setup and editing. b) Setup and editing of customer payment terms. c) Monthly customer account processing. d) Customized Statement messages. e) Statement printing. f) Accounts Receivable reporting. Accounts Receivable can also be used as a stand-alone system but is designed to be used with the Business Functions as a part of the semi-automated accounting system. ACCOUNTS PAYABLE. The Accounts Payable system contains many of the features of the Accounts Receivable system including automated interfaces to the General Ledger. It can also be used as a stand-alone system. Accounts Payable contains: a) Vendor account setup and editing. b) Setup and editing of payment terms to vendors. c) Monthly account processing. d) Accounts Payable reporting. INVENTORY. The Inventory selection is a full-service inventory management system which includes: a) Inventory item setup and editing. b) Product group setup and editing. c) Customized inventory report writing. d) Inventory report printing. e) Year-to-date, quarter-to-date and month-to-date accumulations. The Inventory Management system can also be used as a stand-alone process but gains power and productivity when used in conjunction with Invoicing, General Ledger, Accounts Receivable and Receiving activities. SERVICES. The Services selection is a service management system which is designed to support businesses engaged in non-inventory sales or rental operations AND businesses with a combination of sales from inventory and incomes from non-inventory or rental sources. [2-7] The Services system manages hourly, monthly or one-time charges to customers in a similar manner as sales from inventory in the Inventory Management selection. Services Management includes: a) Services setup and editing. b) Service group setup and editing. c) Customized services report writing. d) Services report printing. e) Year-to-date, quarter-to-date and month-to-date accumulations. The Service Management system can also be used as a stand-alone process but gains power and productivity when used in conjunction with Invoicing, General Ledger and Accounts Receivable activities. BUSINESS FUNCTIONS - Business Function selection will transfer you to another menu (Diagram #2-4) which contains seven (7) specialized selections representing, in non-accounting terms, the activities required for day-to-day business operations. Business Functions automatically address the five (5) data base areas when used as an integrated system. BUSINESS FUNCTIONS ----------------------------- PURCHASE ORDERS RECEIVING CHECK WRITER INVOICING & ORDER PROCESSING RECEIVE CUSTOMER PAYMENTS SALES RETURNS PURCHASE RETURNS SYSTEM MENU ----------------------------- Diagram #2-4 [2-8] Each of the Business Functions are described briefly below. PURCHASE ORDERS. In this selection, Purchase Orders can be written to suppliers for goods and materials which will be added to inventory upon receipt. B.E.S.T., Inc. forms and envelopes are available for simplifying and formalizing the purchasing process. RECEIVING. The Receiving section is used to record Invoices FROM suppliers against Accounts Payable accounts and to record inventory received into the Inventory system. Inventory may, or may not, have been ordered from Purchase Orders. Inventory levels are up-graded when new items are received and Accounts Payable entries are made for goods which will require payment to suppliers. CHECK WRITER. The check writer is used to prepare computer generated checks for payment against Accounts Payable and for preparing checks for one-of-a-kind payments which are not part of Accounts Payable. B.E.S.T., Inc. continuous form computer checks are available for immediate use with the Check Writer. INVOICING AND ORDER PROCESSING. This selection provides an easy to use order processing and invoicing process for use with the inventory AND service activities. In this section, orders are created in the form of preliminary invoices and stored until you need them printed on invoice forms for delivery to customers. An individual order can be converted to a printed invoice, or orders can be collected and printed in 'batches'. Point-of-Sale capability is included in this section for use in direct sales and over-the-counter operations. RECEIVE CUSTOMER PAYMENTS. This selection is used for applying payments to open Invoices from customers in the Accounts Receivable system. [2-9] As individual customer accounts are called to the screen, all open invoices are listed with the invoice number and the amount owed on each invoice. All or part of a specific invoice can be paid OR a payment can be automatically applied to the oldest invoice. SALES RETURNS. The Sales Returns selection provides the capability to return items to stock from cash OR charge customers. For credit returns, Sales Returns adds items to inventory, reduces sales-to-date dollar amounts, reduces cost of goods and reduces Accounts Receivable account balances. For cash returns, Sales Returns increases inventory, reduces sales to-date dollar amounts, reduces cost of goods and reduces cash balances. Service returns (refunds) reduces cash or Accounts Receivable account balances and reduce sales-to-date dollar amounts. PURCHASE RETURNS. The Purchase Returns selection provides the capability to return items to cash OR credit suppliers. For credit returns, Sales Returns reduces inventory, re-calculates Average Cost and reduces Accounts Payable account balances. For cash returns, Sales Returns reduces inventory, re-calculates Average Cost and increases cash balances. Services would not be affected in this area since there are no physical items purchased from suppliers in the Services system. Each of the selections in the Main Menu (Diagram #2-3) are accessed with the Amiga 'Mouse'. Each selection will lead to a menu for each area. [2-10] SETUP - The Setup section is used to prepare your system for initial operation and to make occasional changes to the system. COMPANY INFORMATION. The Company Information area contains a screen for recording YOUR company name as you wish to see it on printed reports, and areas for recording 'Bill To' and 'Ship To' addresses. Those addresses will appear on Invoices, Statements, Purchase Orders and Checks. SYSTEM INTERFACE. The System Interface section contains a screen for entering all 'default' General Ledger account numbers. Those account numbers will be used for system integration. Account numbers which are entered in the System Interface section will only be used when an appropriate account number is found to be missing (i.e. a sales account number during invoicing.) If a sales account is not already associated with an inventory item, for instance, the default sales account will be used to assure a completed invoice. Next Check number, next P.O. number, next Invoice number, sales tax percent, etc. are also included on the Interface screen. CHANGE COLORS. The color control screen in this selection provides you with the capability to modify B.E.S.T., Inc. screen colors. The color control screen contains miniature examples of the screens, and of the messages used throughout the system. RED/BLUE/GREEN color controls can be set to modify each of the existing colors. The miniature screens will illustrate the appearance of the regular screens you will use when you return to the system. This color control process will be particularly useful for color blind individuals, for changing color combinations during long settings and for setting different color patterns for multiple operations. [2-11] SPECIAL SYSTEM FEATURES SCREEN KEYS (GADGETS) - Special B.E.S.T., Inc. screen keys (gadgets) are used throughout the B.E.S.T. BUSINESS MANAGEMENT system. All screen keys are activated with the LEFT mouse button. The screen keys are used for locating records, scrolling through transaction files, saving records, deleting records, etc. A complete list and description of screen keys is included in the Appendix. ERROR MESSAGES - Once the Date screen is presented by B.E.S.T. Business Management, the computer is completely under the control of the program. Only entries requested by the program will be accepted. All keyboard inputs which are not in the correct format will be rejected (i.e. numbers where letters should be used). Keyboard errors, or inappropriate entries, will produce a message on the screen. The message will explain the problem and provide you with the means to return to the current operation. [2-12] ----------------------------------------------------------------------------- THE TWO EXCEPTIONS TO TOTAL SYSTEM CONTROL BY B.E.S.T. WILL OCCUR IF YOU ATTEMPT TO PRINT WHILE A PRINTER IS NOT PRESENT, OR IF THE PRINTER IS NOT TURNED ON AND IN THE READY POSITION. IN THOSE CASES, THE SCREEN MAY APPEAR TO LOCK UP AND WILL NOT RESPOND TO ANY KEYBOARD REQUEST. IF THIS CONDITION ARISES, PRESS THE LEFT AMIGA KEY AND THE 'N' KEY, SIMULTANEOUSLY. THE SYSTEM WILL SWITCH FROM THE CURRENT B.E.S.T., INC. SCREEN TO THE AMIGA CLI SCREEN AND INDICATE THE NATURE OF THE PROBLEM WITH A WORKBENCH ERROR MESSAGE IN THE TOP-LEFT CORNER OF THE SCREEN. CORRECT THE PROBLEM AND RETURN TO THE B.E.S.T. SCREEN BY PRESSING THE LEFT AMIGA KEY AND THE 'M' KEY, SIMULTANEOUSLY. NORMAL OPERATIONS CAN BE RESUMED WITHOUT AFFECTING DATA FILES AND WITHOUT FURTHER INTERRUPTION. ----------------------------------------------------------------------------- [2-13] GETTING STARTED The remainder of this section will be used to begin operation of B.E.S.T. Business Management by preparing the setup activities in the Setup Section of the Main Menu. Each of the areas in the System Setup menu (Diagram #2-5) will be covered. SYSTEM SETUP COMPANY INFORMATION SYSTEM INTERFACE CHANGE COLORS SYSTEM MENU ------------------------------------------ Diagram #2-5 COMPANY INFORMATION - The Company Information screen in Diagram #2-6 is used for applying the company name and/or address to reports and B.E.S.T., Inc. computer forms. The Company Name is used as the company title on all printed REPORTS such as Balance Sheets, Inventory reports, Services reports, etc. Headings will be automatically created on all reports with the Company Name included in the heading. [2-14] COMPANY INFORMATION --------------------------------------- Company Name ADVANCED HOME ELECTRONICS ------------------------- Bill To ADVANCED HOME ELECTRONICS ------------------------- P.O. BOX 1200 ------------------------- MC MINNVILLE, OREGON ------------------------- 97128 ------------------------- Ship To ADVANCED HOME ELECTRONICS ------------------------- 1245 NORTH HIGHWAY 99 ------------------------- MC MINNVILLE, OREGON ------------------------- 97128 ------------------------- {SAVE} {DONE} --------------------------------------- Diagram #2-6 The Company Name field is also used to print your company name in the lower half of a Statement which customers retain for their records. Refer to the Accounts Receivable section of the manual for an example of a printed Statement form illustrating the printed company name. The Bill To and Ship To areas are used as MAILING ADDRESSES on all Invoices, Purchase Orders, Statements and Checks. The Bill To and Ship To addresses should be completed EXACTLY as you wish them to appear on printed forms since they will be visible through the double window envelopes. The Name of the company or individual MUST be included in the Ship To AND Bill To fields since the Company Name is primarily used only for report headings. (Company Name is also used for the lower section of a Statement.) The Ship To and Bill To may be the same address if all mailing and delivery occurs at the same location. They may be different, for example, if mail is delivered to a Post Office box and package deliveries are to be made to a street address. The Ship To may also be different from the Bill To if you have more than one location and purchases are made from a single location. [2-15] The Bill To and address is considered the 'official' address for your company. This computer printed field will be replaced by a pre-printed custom name and address on custom forms. The Bill To field MUST be left blank when using custom imprinted forms. You should consider the way in which you wish to receive mail and goods when completing this section. SYSTEM INTERFACE - The System Interface selection on the System Setup menu (Diagram #2-5) is used for establishing a number of General Ledger account numbers, business form numbers, tax rates, etc. These interface items are used throughout the system in both integrated and stand-alone processes. The entries in this section (Diagram #2-7) include: a) Default General Ledger account numbers. b) Automated/stand-alone General Ledger selection. c) Sales tax rate. d) Next Invoice, P.O. and Check numbers (business forms). DEFAULT GENERAL LEDGER ACCOUNTS. General Ledger account numbers are assigned in the Setup section are those accounts which are required to complete automated transactions created by Business Functions such as invoices and check writing. [2-16] SYSTEM INTERFACE ----------------------------------------------------------------------------- G E N E R A L L E D G E R A C C O U N T N U M B E R S ----------------------------------------------------------------------------- Cash .......................... 1010 Sales Returns ................. 4199 Checking ...................... 1010 Sales Discounts ............... 4195 Accounts Receivable ........... 1110 Finance Charge Income ......... 4420 Inventory ..................... 1290 Cost of Goods Sold ............ 5190 Accounts Payable .............. 2110 Purchase Discounts ............ 5195 Sales Tax Payable ............. 2130 Ship & Ins Expense ............ 5560 Retained Earnings ............. 3200 Sales Tax Expense ............. 5940 Sales ......................... 4190 Finance Charge Expense ........ 5930 ----------------------------------------------------------------------------- Automatically Update G/L (Y/N) Y Sales Tax % ........... 4,500 Next Invoice # ........ 10004 Next P.O. # ........... 10001 Next Check # .......... 40001 {SAVE} {DONE} ----------------------------------------------------------------------------- Diagram #2-7 Some of the accounts listed on the Setup screen may not be required for your specific needs but you should complete an entry for all accounts to assure proper operation of the Business Functions. ----------------------------------------------------------------------------- EACH ACCOUNT YOU ESTABLISH ON THE SETUP SCREEN MUST HAVE A MATCHING ACCOUNT IN YOUR GENERAL LEDGER CHART OF ACCOUNTS. REFER TO THE GENERAL LEDGER SECTION OF THE MANUAL FOR DETAILS ON ESTABLISHING INDIVIDUAL GENERAL LEDGER ACCOUNTS. ----------------------------------------------------------------------------- AUTO/STAND-ALONE GENERAL LEDGER SELECTION. The 'Automatically Update' entry area is used to instruct the system to operate as a stand-alone process or to provide automatic General Ledger updates from Business Functions. Entering 'N' in the 'Automatically Update' field will require all business activity to be entered directly to the data base areas (General Ledger, Accounts Receivable, Accounts Payable, Inventory and Services). [2-17] Entering 'Y' in the 'Automatically Update' field will initiate the automated transaction process from Business Functions. Default General Ledger account numbers are required in the automatic mode. SALES TAX RATE. This entry is required if you are in a state or locality where sales tax is applied to sales. The total sales tax for your region, if required, should be entered in this area. The sales tax percentage entered here will be automatically applied to all sales. Customers in the Accounts Receivable section can be individually selected as taxable or non-taxable accounts. Individual invoices can also be modified to add sales tax, if necessary. BUSINESS FORM NUMBERS. The 'Next XXX' form numbers (i.e. 'Next P.O. #') requested on the Setup screen are for numbering business forms. Numbers entered in these fields will establish the beginning numbers of the numerical sequences for each of the business forms. These entries can be altered at any time, but care should be taken to assure an un-interrupted numerical sequence for each form. CHANGE COLORS - Activating the [CHANGE COLORS] selection on the Setup menu (Diagram #2-5) will produce the color control screen in Diagram #2-8. This screen is used to modify the pre-set B.E.S.T., Inc. screen colors and to restore the B.E.S.T., Inc. colors after you have created custom screen colors. [2-18] {Diagram #2-8} THE COLOR CONTROL SCREEN. The color control screen contains three key sections. The first is the set of blocks at the top of the screen which indicate the eight currently assigned colors. The next key area of the color control screen is the red/green/blue adjustment section located just below the eight color blocks. The three color adjustment (red/green/blue) can be used to produce custom colors for one or more of the eight assigned colors. The third section of the color control screen is the set of sample screens shown below the red/green/blue adjustments. These miniature screens are used for reference while changing any currently assigned color. The miniature screens will immediately display changes to typical screens throughout B.E.S.T. Business Management. CHANGING SCREEN COLORS. Color changes are made by moving the Mouse arrow to a desired color block at the top of the screen and pressing the left Mouse button. An arrow will appear below the selected color block. [2-19] Next, place the Mouse arrow on the small black adjusting square within the red, green or blue color bar. Adjust the color in the selected color box by moving the adjusting square while pressing the left Mouse button. Continue the process until you are satisfied with the combination of colors on the miniature screens. Color changes can also be made in steps by placing the arrow to the left or right of the adjusting square and press the left Mouse button for each color step. The [UNDO] key will restore screen colors to the colors which were in place when you first entered the color control system or to the colors which were last saved during the current session. SAVING SELECTED SCREEN COLORS. Use the [SAVE] key to save your custom colors and the [RESET] key to restore the screen to B.E.S.T., Inc. colors. Only the last saved colors will be permanently saved to the disk. Therefore you should use the [SAVE] key to be sure you have saved your final color selection (custom or B.E.S.T., Inc. colors). [2-20] INTRODUCTION TO THE GENERAL LEDGER The purpose of this section is to introduce you to the contents and uses of the General Ledger as a means to improve the quality of your accounting information. WHAT IS A GENERAL LEDGER? - One thing the B.E.S.T. General Ledger should not be is something to fear. The ledger is merely a convenient set of "buckets" that are used to collect information about your company activities. The buckets of information can be quickly and easily organized into financial reports such as Balance Sheets and Income Statements, to reflect the financial condition of your company. The General Ledger can be useful for more than just producing Income Statements and Balance Sheets, however. A wide variety of custom management reports can be designed as you need them. This custom reporting capability can make the General Ledger system a really productive management tool for your business. AN AID TO ACCOUNTING. One of the most important purposes of the General Ledger system is to provide the accounting base for your business. A complete and easy to use accounting system provides an excellent link between you and your accountant. Up-to-date summary information on account balances, trends, etc. can be of considerable help to accounting and tax specialists and can help you to develop a more effective relationship with your accounting professionals. AN INFORMATION SYSTEM. Another important purpose of the General Ledger in the B.E.S.T. Business Management is to provide a source of information. Ledger includes financial data such as: a) Income b) Inventory values c) Operating expenses d) Cash and other assets e) Liabilities f) Owner's equity [3-1] Information on these activities can be stored, accumulated, selected and sorted into any number of reporting formats for activity tracking and decision making. The speed and efficiency of preparing reports from this information, though, will depend upon: a) The amount of detailed information available b) The complexity of the reports c) Your current skills and experience A MANAGEMENT DISCIPLINE. Proper management of any Ledger system, manual or computer-aided, requires some dedication to data collection, processing and reporting. There is little room for inconsistent maintenance of the process without degrading the quality of the information and reports. The B.E.S.T. General Ledger helps you to get organized with the least possible difficulty. It is designed to help you to quickly and easily organize, collect and record your accounting data and to continue to support your needs as you develop more extensive requirements. After sufficient time and energy has been applied to learn and develop the General Ledger system for your company, the over-all time to use and main- tain the process should be less than the time spent on a less organized bookkeeping system. As your knowledge and experience increases, less time is required to get steadily improving results although you may generate more reports and other useful decision making information than you had been in the past. The B.E.S.T. General Ledger system, then, is a process for establishing an easy to manage discipline that will continue to improve the quality of your business information over time. THE B.E.S.T. GENERAL LEDGER MANAGEMENT SYSTEM - The B.E.S.T. Business Management General Ledger has been designed with YOU as the focal point of the process. It will help you to improve the performance of your business without forcing changes in the way you manage your business. And no computer experience is required for you to learn and implement an effective General Ledger process using the B.E.S.T. approach. [3-2] The B.E.S.T. General Ledger combines the most advanced commercial quality computer programming techniques available, with highly reliable and powerful computer equipment. This combination of state-of-the-art "soft- ware" and powerful "hardware" provides the most usable and cost effective General Ledger management capability possible without a major capital investment and without significant personnel expenses. HOW CAN THE B.E.S.T. GENERAL LEDGER BENEFIT YOUR BUSINESS? - There are a number of specific benefits you will enjoy from using the computer-aided B.E.S.T. General Ledger that are not possible with manual methods. SIMPLIFY FINANCIAL DATA COLLECTION. One of the obvious benefits of the B.E.S.T. computer aided General Ledger system is the ease of handling of large amounts of accounting information. Entering information into a computer, rather than on paper, greatly simplifies your job of data collection, since accounting information can be entered rapidly and easily without special skills. Once accounting data has been entered into the computerized data base, the information can be stored indefinitely and can be recovered, sorted, summarized and listed at any time. PRODUCE CUSTOMIZED FINANCIAL STATEMENTS. Many times you would like to have current copies of your financial statements for your banker or supplier. The time required to prepare the statements manually or by your accountant, however, causes you to delay or avoid producing the documents. One of the most valued features of the B.E.S.T. computer-aided system is the ability to produce financial reports when you need them without the assistance of an accountant. The participation of your accountant in the preparation of financial state- ments for official purpose is still highly recommended to assure consistency and accuracy of statements that may be used to formally evaluate the financial status of you company. [3-3] The following sections will guide you through an easy to understand process to develop your General Ledger system into a business system that will make you proud of your accomplishments. REDUCE BOOKKEEPING AND ACCOUNTING COSTS. The "bottom line" benefit in using the B.E.S.T. computer-aided General Ledger is the direct cost savings you can realize from improved data collection and the automated preparation of financial statements. Even greater indirect cost benefits should be obtained from improved management information and improved management decisions. [3-4] THE GENERAL LEDGER SYSTEM MENU {Diagram #3-1} This section provides a very brief overview of the major functions available from the General Ledger Main Menu. The General Ledger is needed to prepare your initial accounting system Chart of Accounts and for miscellaneous account entries during the month. Most accounting entries, though, will be performed automatically once you have set up the General Ledger. ----------------------------------------------------------------------------- THE GENERAL LEDGER CAN BE USED INDEPENDENT OF THE OTHER SECTIONS OF THE B.E.S.T. BUSINESS MANAGEMENT SYSTEM, IF DESIRED. REFER TO THE COMPANY INFORMATION SECTION IN THE FRONT OF THE MANUAL FOR INSTRUCTIONS ON INDEPENDENT OPERATION. ----------------------------------------------------------------------------- The General Ledger Main Menu (Diagram #3-1) is accessed from GENERAL LEDGER selection on the Main system menu. A brief overview of each of the selections in the General Ledger Menu is provided below. [3-5] CHART OS ACCOUNTS. The Chart of Accounts section is used to create and manage the custom made set of Ledger accounts that will form the framework fro the entire General Ledger system. This area can also be used to make entries directly to the G/L accounts when preparing historical data. TRANSACTIONS. The transaction section is used for entering individual account transactions into the transaction data base for the current month of activity. The transactions are entered, listed, tested, and closed to the G/L accounts and cleared to begin another month of transaction entries. FINANCIAL REPORT WRITER. The Report Writer is used to produce high quality, customized financial reports. Income Statements, Balance Sheets and other special purpose reports can be developed and stored for continuous use. FINANCIAL REPORTS. This section is used to produce the financial reports that are developed by the Report Writer. The report generator in this section allows you to make many variations of your basic reports. SET G/L DATES. Specific information is entered in this area to establish your accounting calendar starting date and current month of activity. SYSTEM MENU. This selection is used to RETURN to the B.E.S.T. Business Management System MAIN MENU after completing General Ledger activities. Each of the areas appearing in the GENERAL LEDGER MENU are covered in detail in the following sections, using examples and illustrations whenever possible. [3-6] PREPARING YOUR CHART OF ACCOUNTS {Diagram #3-2} A Chart of Accounts is simply a list of all the types of financial activities that you need to identify and track in the process of doing business. These accounts become monthly "buckets" which collect the financial information that is used to produce reports such as Income Statements and Balance Sheets. These and other reports help to describe the profitability and financial strength of your company. The first step in establishing a General Ledger system, then, is to build a Chart of Accounts. All Chart of Accounts activity is contained in the CHART OF ACCOUNTS selection of the General Ledger Menu (Diagram #3-2). Selecting the CHART OF ACCOUNTS option will call the G/L CHART OF ACCOUNTS menu screen in Diagram #3-3. Each of the items on this menu will be discussed in detail in this section. [3-7] {Diagram #3-3} {Diagram #3-4} [3-8] PREPARING YOUR COMPANY ACCOUNTING CALENDAR - The first step in developing your Chart of Accounts is to set up a small file for recording the beginning month of historical accounting periods and the current month of accounting activity. This information will be used by the G/L system to establish your company calendar of months and fiscal years over three continuous years. You can begin your calendar year in any month required to satisfy your fiscal year requirement. The SET G/L DATES screen is accessed from the SET G/L DATES selection on the G/L main menu (Diagram #3-4). The information for the accounting calendar is entered on the screen shown in Diagram #3-5. {Diagram #3-5} [3-9] The entries in Diagram #3-5 need to be established when you set up your system for the first time. The 'G/L Current Period' will be re-set auto- matically at monthly closing. Transactions will be entered, either manually or automatically, according to the date (month) established in the 'G/L Current Period'. The 'Month' entry for 'G/L History Begins' establishes the month that starts your business year. The beginning month is usually '1' for January but can be any other month of the year. The 'Year' entry for 'G/L History Begins' establishes the first year of history to be maintained in the system. For instance, if you were preparing the 12 months of 1984 as history prior to beginning 1985, the first year of history would be '84'. The 'Month' entry for 'G/L Current Period' is the month in the current year for which you will be entering transactions. In the example here, the current year is 1985 and the current month is December ('12'). The 'Current month' would need to be changed (advanced) after the close of each month. This will be discussed again in the section on Transactions. The 'Year' entry for 'G/L Current Period' is the year for which you will be entering current transactions. As an example, '85' would be used for all entries made in the calendar year of 1985. ----------------------------------------------------------------------------- WHEN YOU HAVE FINISHED ENTERING THE INFORMATION ON THIS SCREEN YOU MUST ACTIVATE THE [SAVE] FUNCTION TO RECORD NEW ENTRIES OR ANY CHANGES TO THE SCREEN. A SCREEN MESSAGE IN YELLOW WILL APPEAR IN THE TOP RIGHT CORNER OF THE SCREEN FOR A SHORT TIME WHILE SAVING THE INFORMATION. ----------------------------------------------------------------------------- Activating [DONE] will return you to the General Ledger main menu. MANAGING THE ACCOUNTS - Since you may have an occasional need to alter the description and contents of individual accounts, an extensive management system has been included to make the job as easy and as fast as possible. This section will cover the process of creating individual G/L accounts and managing their activities during the year. [3-10] ----------------------------------------------------------------------------- YOU NEED NOT BE CONCERNED ABOUT ACCOUNTING PROCEDURES AND TERMINOLOGY AT THIS TIME. SOME DIRECTION FROM AN ACCOUNTANT MAY BE HELPFUL, BUT SUFFICIENT EXAMPLES AND ACCOUNT LISTINGS ARE PROVIDED TO REMOVE MUCH OF THE MYSTERY SURROUNDING THE ACCOUNTING PROCESS. ----------------------------------------------------------------------------- {Diagram #3-6} The [CHART OF ACCOUNTS] selection on the G/L main menu (Diagram #3-6) will be used to access all Chart of Account management activity. The [CHART OF ACCOUNTS] selection will present the Chart of Accounts Menu in Diagram #3-7. [3-11] {Diagram #3-7} ADDING NEW ACCOUNTS. The [ADD NEW ACCOUNTS] selection on the G/L Chart of Accounts Menu (Diagram #3-8) is used to develop a new Chart of Accounts and to add new accounts during the year. Activating the [ADD NEW ACCOUNTS] key will produce an account entry screen (Diagram #3-9) for adding account numbers, naming the accounts and establishing the normal DEBIT or CREDIT position for the account. {Diagram #3-8} [3-12] {Diagram #3-9} The screen in Diagram #3-9 can also be used to enter prior monthly totals for a new account to bring the account up to date. Diagram #3-9 illustrates the three year calendar, beginning with JAN-84 that was determined by the starting date in the G/L General Information section. ----------------------------------------------------------------------------- THE B.E.S.T. G/L SYSTEM CONTAINS A NUMBER OF HELP FEATURES THAT WILL BE INVALUABLE TO YOU AS A NEW USER AND TO ANYONE WHO IS NOT PROFICIENT IN ACCOUNTING. THESE FEATURES WILL ALLOW YOU TO AVOID MOST PROBLEMS THAT OCCUR IN THE USE OF DEBITS AND CREDITS, NEGATIVE AND POSITIVE NUMBERS AND ACCOUNT GROUPINGS FOR REPORTING PURPOSES. THE USE OF THE ACCOUNT NUMBERING SCHEME SHOWN BELOW IS NECESSARY TO MAINTAIN CONSISTENCY IN THE REMAINDER OF THE SYSTEM AND TO MAKE USE OF THE EXTENSIVE HELP FEATURES. ----------------------------------------------------------------------------- [3-13] The account numbering scheme must be followed to assure proper reporting capability. The 'default' normal balances listed below for each account category are appropriate in 95% of the cases. A few of the exceptions will be discussed separately as they arise. Default Account Numbers Major Account Category Normal Balances --------------- ---------------------- --------------- 1000 - 1999 Assets Debit 2000 - 2999 Liabilities Credit 3000 - 3999 Capital Credit 4000 - 4999 Income Credit 5000 - 5999 Expense Debit You may use any account numbering process you wish within each category listed above. However, it is advisable to organize similar accounts or accounts which will be totaled into consecutive groups. An example Chart of Accounts is included at the end of this section. Diagram #3-10 shows a new account #1030 for PETTY CASH with a normal DEBIT balance (when cash is positive). Information for the months of 1984 have been entered to complete a year of history. The [SAVE] key must be activated to save the new account and the monthly information to the disk. A clear entry screen for the next new account will be presented after each save. The [DONE] key will return you to the Chart of Accounts menu. [3-14] {Diagram #3-10} EDITING EXISTING ACCOUNTS. The account editor is used to make changes to the Account Description, Normal Balance (D/C) and to enter or change the entries for the calendar months. You can also change the account number, provided no unposted transactions exist for the account. ----------------------------------------------------------------------------- NORMALLY, ENTRIES TO THE GENERAL LEDGER WILL BE MADE THROUGH BUSINESS FUNCTIONS AND INDIVIDUAL TRANSACTIONS RATHER THAN DIRECTLY THROUGH THE EDITOR. ANY CHANGES IN MONTHLY ENTRIES MADE DIRECTLY TO THE G/L THROUGH THE EDITOR MAY NOT MATCH THE ENTRIES MADE BY ENTERING INDIVIDUAL TRANSACTIONS. ----------------------------------------------------------------------------- The [EDIT EXISTING ACCOUNTS] selection on the Chart of Accounts Menu (Diagram #3-8) will bring up an account editing screen (Diagram #3-11) which looks much like the new account screen. Individual accounts can be located in a number of ways from this screen. [3-15] {Diagram #3-11} First, the search keys in the bottom left corner of the screen can be used to locate the 1st account (left key) or the last account (right key). The accounts can be scanned forward and backward with the arrow keys. {Diagram #3-12} [3-16] Another method of locating a specific account is to select it by Account Number with the [FIND] key. When the [FIND] key on the Edit screen is activated, a small screen is provided (Diagram #3-12) to enter an account number. The [FIND] key on the entry screen will locate the account and present it on the Edit screen as shown in Diagram #3-13. The [CANCEL] key will return you to the edit screen. {Diagram #3-13} You may also select an account to review or edit by searching on Descrip- tion. The [SEARCH] key will bring up the entry screen in Diagram #3-14. Entering an account name and activating the [SEARCH] key will bring up the selected account for editing (Diagram #3-15). [3-17] {Diagram #3-14} Data entry areas can be entered by moving the arrow to the desired location on the screen with the mouse, and clicking the left mouse button. You may also move to a specific location with the keyboard arrows and with the [RETURN] key. The entry field can be changed from the keyboard by placing the cursor in the desired data field area and clicking the left mouse button. {Diagram #3-15} [3-18] You do not need to enter the '00' part of the number. The system automati- cally inserts decimals and zeros if they have not been entered. Data changes will be automatically saved to the disk whenever you leave the current screen. For example, the use of the account scanning, the [FIND] or the [SEARCH] features will save the data before the next account is located. Also, data is saved when the [DONE] key is used to exit the editor. {Diagram #3-16} The [UNDO] feature can be used to avoid saving changes on a current screen. Activating the [UNDO] key after making screen changes (Diagram #3-16) will call up the screen message shown in Diagram #3-17. Activating the [UNDO] key on the message screen will return all data for the selected account to the condition before changes were entered. [3-19] {Diagram #3-17} ----------------------------------------------------------------------------- IF AN IMPROPER ENTRY HAS BEEN MADE TO A SCREEN, IT MUST BE REMOVED OR CORRECTED BEFORE EXITING THE ACCOUNT, SINCE ALL CHANGES WILL BE SAVED WHEN LEAVING THE CURRENT SCREEN. ----------------------------------------------------------------------------- {Diagram #3-18} [3-20] DELETING ACCOUNTS. An unwanted account can be deleted from the Chart of Accounts with [DELETE] key on the account edit screen (Diagram #3-18). The [DELETE] key will bring up the message screen in Diagram #3-19 to allow you to cancel the delete request, if necessary. Activating the [DELETE] key on the message screen will permanently delete the current account from your Chart of Accounts. Diagram #3-20 shows the account with restored data. The next account in the Chart of Accounts will be shown (Diagram #3-20) after an account has been deleted. {Diagram #3-19} ----------------------------------------------------------------------------- USE THE ACCOUNT DELETE FEATURE WITH CAUTION SINCE A DELETED ACCOUNT CANNOT BE RECOVERED. DELETING AN ACCOUNT CAN CAUSE YOUR RECORDS TO BE OUT OF BALANCE IF THE ACCOUNT IS DELETED WITHOUT REGARD TO OTHER ACCOUNTS. ----------------------------------------------------------------------------- [3-21] {Diagram #3-20} PRINTING YOUR CHART OF ACCOUNTS - The list of accounts we will use for the remaining examples is shown at the end of this section. The listing was produced by selecting the [PRINT CHART OF ACCOUNTS] option on the G/L Chart of Accounts menu in Diagram #3-21. {Diagram #3-21} [3-22] The message screen in Diagram #3-22 will be shown prior to printing to remind you to prepare your printer before continuing. Be sure you have your printer turned on and in the 'On Line' condition before you begin printing the accounts. {Diagram #3-22} The [PRINT] key will begin the printing process. [3-23] ----------------------------------------------------------------------------- 10-JAN-86 ADVANCED HOME ELECTRONICS Page 1 CHART OF ACCOUNTS ----------------------------------------------------------------------------- ACCT NORMAL NO. DESCRIPTION BALANCE ---- -------------------------- ------- 1010 CASH - CHECKING DEBIT 1020 CASH - SAVINGS DEBIT 1030 CASH - PETTY DEBIT 1110 ACCOUNTS RECEIVABLE DEBIT 1210 INVENTORY - MOVIES DEBIT 1220 INVENTORY - VIDEO EQUIP. DEBIT 1230 INVENTORY - T.V. EQUIP. DEBIT 1240 INVENTORY - ACCESSORIES DEBIT 1250 INVENTORY - SERVICE PARTS DEBIT 1290 INVENTORY - OTHER DEBIT 1310 RENTAL EQUIPMENT DEBIT 1320 SERVICE EQUIPMENT DEBIT 1330 FURNITURE AND FIXTURES DEBIT 1340 OFFICE EQUIPMENT DEBIT 1400 ACCUMULATED DEPRECIATION DEBIT 2110 ACCOUNTS PAYABLE CREDIT 2120 NOTES PAYABLE CREDIT 2130 SALES TAX PAYABLE CREDIT 2210 FEDERAL TAX WITHHELD CREDIT 2220 STATE TAX WITHHELD CREDIT 2230 F.I.C.A. WITHHELD CREDIT 3100 CAPITAL STOCK CREDIT 3200 RETAINED EARNINGS CREDIT 4110 SALES - MOVIES CREDIT 4120 SALES - VIDEO EQUIP. CREDIT 4130 SALES - T.V. EQUIP. CREDIT 4140 SALES - ACCESSORIES CREDIT 4150 SALES - SERVICE PARTS CREDIT 4190 SALES - OTHER CREDIT 4195 SALES DISCOUNTS DEBIT 4199 SALES RETURNS AND ALLOW DEBIT 4210 RENTAL INCOME - MOVIES CREDIT 4220 RENTAL INCOME - VCR'S CREDIT 4320 SERVICE - VCR REPAIR CREDIT 4330 SERVICE - T.V. REPAIR CREDIT 4390 SERVICE - OTHER CREDIT 4410 INTEREST INCOME CREDIT 4420 FINANCE CHARGE INCOME CREDIT 5110 COG - MOVIES DEBIT 5120 COG - VIDEO EQUIP. DEBIT 5130 COG - T.V. EQUIP. DEBIT 5140 COG - ACCESSORIES DEBIT 5150 COG - SERVICE PARTS DEBIT 5190 COG - OTHER DEBIT 5199 PURCHASE RETURNS CREDIT 5210 SALARY EXPENSE DEBIT 5220 EMPLOYEE INSURANCE DEBIT 5410 FEES - LEGAL DEBIT 5420 FEES - ACCOUNTING DEBIT 5510 RENT DEBIT 5520 TELEPHONE DEBIT 5530 UTILITIES DEBIT [3-24] ---------------------------------------------------------------------------- 10-JAN-86 ADVANCED HOME ELECTRONICS Page 2 CHART OF ACCOUNTS ---------------------------------------------------------------------------- ACCT NORMAL NO. DESCRIPTION BALANCE ---- ---------------------------- ------- 5540 POSTAGE AND MAILING DEBIT 5550 OFFICE SUPPLIES DEBIT 5560 SHIPPING AND INSURANCE DEBIT 5610 ADVERTISING DEBIT 5910 INTEREST EXPENSE DEBIT 5920 DEPRECIATION EXPENSE DEBIT 5930 FINANCE CHARGE EXPENSE DEBIT 5940 SALES TAX EXPENSE DEBIT 5990 MISCELLANEOUS EXPENSE DEBIT [3-25] ENTERING AND MANAGING ACCOUNT TRANSACTIONS Account transactions are the individual financial entries that are made at the time of invoicing, purchasing, paying of expenses, etc. These transactions are normally handled automatically be the system at the business function level but can entered directly into the General Ledger when necessary. The transactions can be entered at a very detailed level (i.e., cash received for an individual sale), or at higher levels (i.e.,the total of all cash sales for the day). Generally, the lower the level of transaction entry, the better your ability will be to track specific activities. All transactions are stored in a temporary transaction file during each current month. They are erased after they have been posted to the monthly G/L accounts. The transaction file is then ready to use for the next month of entries. ------------------------------------------------------------------------------ THE 'G/L CURRENT PERIOD' ENTRY IN YOUR GENERAL INFORMATION DATA SCREEN MUST REFLECT THE SAME MONTH AS THE TRANSACTIONS THAT ARE TO BE ENTERED. ------------------------------------------------------------------------------ A typical monthly transaction process (manual entry) consists of a series of easy to learn and easy to use steps. These steps include: a) Entering transactions. b) Printing transactions reports. c) Posting transactions to the G/L accounts. This section of the manual will describe the transaction process illustrated above. ------------------------------------------------------------------------------ NORMALLY, TRANSACTIONS ARE AUTOMATICALLY ENTERED INTO APPROPRIATE JOURNALS FROM THE BUSINESS FUNCTION LEVEL. THE MANUAL ENTRY PROCESS WILL STILL BE NECESSARY, THOUGH, TO ENTER UNUSUAL TRANSACTIONS SUCH AS MONTHLY DEPRECIATION EXPENSE, CORRECTING ENTRIES, ETC. ------------------------------------------------------------------------------ [3-26] {Diagram #3-23} The transaction management activity is contained in the [TRANSACTIONS] selection on the General Ledger main menu (Diagram #3-23). The [TRANS- ACTIONS] key on the G/L main menu will call the Transactions menu shown in Diagram #3-24. {Diagram #3-24} [3-27] ENTERING TRANSACTIONS - Manual transactions are entered into the monthly transaction data base through the [ENTER NEW TRANSACTIONS] selection on the Transaction menu in Diagram #3-24. The [ENTER NEW TRANSACTIONS] selection brings up a menu of journals to choose from for manual entry. The transaction journals are shown on the menu in Diagram #3-25. {Diagram #3-25} The menu of transaction journals in Diagram #3-25 may appear rather imposing at first, but you should be quite comfortable with this section of the G/L after we describe a series of transaction entry examples. The examples will cover typical entries for each of transaction journals. SALES JOURNAL. The Sale Journal is used to enter transactions related to sales of goods or services. The transaction entry screen for Sales activities shown in Diagram #3-26, is accessed through the [SALES JOURNAL] selection on the Transaction menu (Diagram #3-25). [3-28] {Diagram #3-26} The 'Current Period' in the top-left corner of the screen is the month that has been recorded in the General Information section. Dates for transactions must be within the Current Period shown. Each transaction is recorded for future review by a 'Transaction #' shown in the top right corner of the screen. Individual transactions can be identified from printed listings and screen recalls by the transaction number. The 'Day' is the effective date of the transaction within the 'Current Period' such as '5' for January 5, 1986. The 'Ref' field is typically used to record the document associated to the transaction. In a sales activity, the invoice Number (INV #1234) would be used to provide audit trail capability. The 'Desc' field is for entering a general description for the transaction. If the transaction is entered manually, the description can be any written message. Automatic transactions will record the Description from the Business Activity. [3-29] The 'Acct' field is the specific G/L account number from the Chart of Accounts associated with each part of the transaction. The account descrip- tion will always be filled in automatically after a correct account number is entered and followed by a 'Return'. Usually, one or more sales accounts such as #4110 and a cash account (#1010) or Accounts Receivable account (#1110) will be entered for a sales activity. The 'Debit' and 'Credit' fields are for entering transaction amounts. Total Credits and total Debits for each completed transaction MUST be EQUAL (balanced) before they will be accepted by the system. A warning message will show on the screen if a [SAVE] is attempted with unbalanced Debits and Credits. This type of entry protection will allow you to make any number of transaction entries without creating unbalanced General Ledger accounts. ------------------------------------------------------------------------------ ENTRIES MADE FROM BUSINESS FUNCTIONS AUTOMATICALLY COMPLETE ALL NECESSARY TRANSACTIONS. MANUAL TRANSACTION ENTRIES, THOUGH, ARE NOT AUTOMATICALLY TRANSFERRED FROM SALES TRANSACTIONS TO INDIVIDUAL CUSTOMER ACCOUNTS. A SECOND ENTRY TO AN INDIVIDUAL CUSTOMER ACCOUNT IS NEEDED TO COMPLETE THE PROCESS FOR MANUAL ENTRIES. ------------------------------------------------------------------------------ [3-30] Diagram #3-27 shows a completed entry screen with details of a typical sale transaction. The Debit Total is equal to the Credit Total, allowing the transaction can be saved by activating the [SAVE] key. The [SAVE] key is activated by placing the arrow on the key and pressing the left mouse button. {Diagram #3-27} [3-31] When the [SAVE] key is used, the screen information will be saved to a monthly transaction data base. It will remain there until the transactions in the data base are posted to the monthly General Ledger summary accounts. All current transactions in the monthly transaction file are accessible through the transaction editing system as discussed later in this section. PURCHASES JOURNAL. The Purchases Journal in Diagram #3-28 is accessed from the [PURCHASES JOURNAL] selection on the Transaction menu (Diagram #3-25). {Diagram #3-28} Typically, the Purchases Journals is used to enter transactions for purchases or services from vendors or suppliers for cash, or for charges that become Accounts Payable. Individual Accounts Payable accounts (vendors) must also be up-dated to complete the activity, if automatic entries are not used. The entry screen in Diagram #3-28 is used the same as the Sales trans- action screen discussed in the previous example. The 'transaction #' assigned for each of the Purchase Journal transactions will be a new sequence of numbers since each journal will contain a different set of numbered transactions. [3-32] The 'Ref' for a Purchases transaction will typically contain the Purchase Order number from the Purchase Order that created the transaction. The example in Diagram #3-29 shows a completed transaction entry for a typical Purchase transaction. The [SAVE] key will save the transaction to the monthly transaction file. {Diagram #3-29} [3-33] CASH RECEIPTS JOURNAL. This section of transaction entries is used for recording payments received from customers and for other miscellaneous cash receipt transactions. Cash Receipt transaction are made through the [CASH RECEIPTS JOURNAL] selection on the Transaction Entry menu (Diagram #3-25). Again, the transaction entry screen in Diagram #3-30 is the same as the previous entry screens for Sales and Purchases. {Diagram #3-30} The 'Ref' for a Cash Receipts transaction will typically contain the customer's check number as a reference to track the transaction. The appropriate Cash Receipts account (#1010) and the Accounts Receivable account (#1110) would typically be the balancing accounts. Payments from customers would increase (Debit) cash and decrease (Credit) Accounts Receivable. [3-34] The Cash account is the specific cash account to which the receipt is to be applied. You may have several cash accounts but the balances of each can only be maintained correctly if the cash receipts are applied to the correct cash account. The example in Diagram #3-31 shows a completed transaction entry for a typical Cash Receipt transaction. The [SAVE] key will save the transaction to the monthly transaction file. {Diagram #3-31} CASH DISBURSEMENTS JOURNAL. This section of transaction entries is used for recording payments made to supplies and for other miscellaneous cash payments. Cash Disbursement transactions are made through the [CASH DISBURSEMENTS JOURNAL] selection on the Transaction Entry menu (Diagram #3-25). The transaction entry screen in Diagram #3-32 is the same as the entry screens for previous activities. [3-35] {Diagram #3-32} The 'Ref' for a Cash Disbursements transaction will typically contain your check number as a reference to track the transaction. The appropriate Cash account (#1010) and the Accounts Payable account (#2110) would typically be the balancing accounts. A payment to a supplier would decrease (Credit) cash and decrease (Debit) Accounts Payable. Remember, the Cash account is the specific cash account from which the payment is to be made. Cash account balances can only be maintained correctly if the cash payments are applied to the correct cash account. The example in Diagram #3-33 shows a completed transaction entry for a typical Cash Disbursement transaction. The [SAVE] key will save the trans- action to the monthly transaction file. [3-36] {Diagram #3-33} Miscellaneous cash payment entries can also be made in the Cash Disbursement Journal (checking is considered to be a cash payment). Monthly rent, telephone, utilities, payroll and other payments can be entered in this section. GENERAL JOURNAL. The General Journal is used to enter miscellaneous entries such as depreciation expense, and correcting entries for prior example of a General Journal entry is included in this section as a guide for other miscellaneous entries. The General Journal is accessed from the [GENERAL JOURNAL] Selection on the menu in Diagram #3-25. The entry screen in Diagram #3-34 is the same format as the other journals. [3-37] {Diagram #3-34} We strongly advise that you make correcting or reversing entries, due to incorrect entries for PRIOR MONTH ACTIVITIES, through the General Journal. Changes can be made directly to the monthly General Ledger accounts but entries made to the General Journal will maintain an audit trail and will assure a balanced Ledger. Corrections to transactions in the current month do not need to be made through the General Journal, since all transactions can be reviewed and edited within each journal. The edited journal entries are also forced to balanced at the time they are saved to assure a balanced Ledger. Diagram #3-35 illustrates a transaction to correct an entry originally made in the prior month. The previous rent entry of $335.00 is being corrected to $435.00 through the General Journal. Only the difference ($100.00) required to adjust to the correct amount needs to be entered. [3-38] {Diagram #3-35} EDITING CURRENT MONTH TRANSACTIONS - The General Ledger transaction management system includes the ability to make corrections to all current transactions prior to posting them to the General Ledger accounts. Once the transactions have been posted, they will be lost because the transaction files will be erased to prepare for the next month of transactions. The [EDIT EXISTING TRANSACTIONS] option on the G/L Transactions menu (Diagram #3-36) produces the Edit G/L Transactions screen in Diagram #3-37. Individual journals are selected for transaction editing from the Edit G/L Transactions screen. [3-39] {Diagram #3-36} Our transaction editing example uses the [SAVES JOURNAL] selection in Diagram #3-37. {Diagram #3-37} [3-40] The Sales Journal edit screen (Diagram #3-38) is very similar to the screen used for entering new transactions except for the additional keys at the bottom of the screen for searching, deleting, etc. The transaction (#1) in Diagram #3-38 is the first transaction in the Sales Journal file. All other transactions will be numbered sequentially as they occurred during manual or automatic entry. Other transactions can be recalled for review and/or correcting by the screen keys. {Diagram #3-38} Any information on the screen, except for the Transaction Number and the Current Period, can be accessed for correction. The balance (TOTALS) at the bottom of the Debit/Credit columns will check for a balanced entry when the screen is saved. The [FIND] key will locate a specific transaction by Transaction Number. The [SEARCH] key will locate a transaction by Reference Number such as INV #1234. The [UNDO], [DELETE] and ARROW scan keys operate the same as in other sections of the system. [3-41] ------------------------------------------------------------------------------ A SCREEN CHANGE IS SAVED ANY TIME YOU MOVE FROM THE CURRENT SCREEN TO ANOTHER TRANSACTION SCREEN OR TO THE MENU. ANY UNWANTED SCREEN CHANGES SHOULD BE CLEARED WITH THE [UNDO] KEY BEFORE LEAVING THE CURRENT SCREEN. ------------------------------------------------------------------------------ A printer listing of the transaction files (discussed in the next section) will help you to identify and locate specific transactions through the transaction editing process. PRINTING TRANSACTION JOURNALS - The transaction section contains a transaction reporting system which can provide a great deal of visibility into your transaction entry activity prior to monthly closing. This section will provide examples of the transaction reports. The transaction reporting process is accessed through the [PRINT JOURNALS] selection on the G/L Transaction menu in Diagram #3-39. The {PRINT JOURNALS] selection produces the print selection screen in Diagram #3-40 listing the five journals. Select one or more of the transaction journals for printing by placing the arrow on a box and activating the left mouse button. The box will turn red when it has been selected. [3-42] {Diagram #3-39} The transaction reports list each transaction by transaction number. The total of all Debit and Credit entries entered for the transaction are included in the listing. Each entry shows the transaction Date, Account Number, Reference, Description and the Debit/Credit amounts. {Diagram #3-40} [3-43] An example of each of the transaction reports is provided at the end of this section. ---------------------------------------------------------------------------- 15-JAN-86 ADVANCED HOME ELECTRONICS Page 1 GENERAL JOURNAL DECEMBER 1985 ---------------------------------------------------------------------------- TRAN # DAY REF / ACCT # DESCRIPTION DEBIT CREDIT ------ --- -------------- ---------------------- ----- ------ # 4 1 12/85 DEPR. DEPRECIATION EXPENSE 5920 DEPRECIATION EXPENSE 200.00 1400 ACCUMULATED DEPRECIATION 200.00 # 5 2 T.V. SALE 4130 SALES - T.V. EQUIP. 200.00 1010 CASH - CHECKING 200.00 # 6 3 MOVIE SALE 4110 SALES - MOVIES 50.00 1010 CASH - CHECKING 50.00 # 7 DEC. TRANS. CORRECTING ENTRY - RENT 1010 CASH - CHECKING 100.00 5510 RENT 100.00 [3-44] ---------------------------------------------------------------------------- 15-JAN-86 ADVANCED HOME ELECTRONICS Page 1 SALES JOURNAL DECEMBER 1985 ---------------------------------------------------------------------------- TRAN # DAY REF / ACCT # DESCRIPTION DEBIT CREDIT ------ --- ------------- ----------------------- ----- ------ # 1 5 INV. # 1235 HARDWARE SALE - CUST #2 1110 ACCOUNTS RECEIVABLE 1200.00 4120 SALES - VIDEO EQUIP. 500.00 4130 SALES - T.V. EQUIP. 700.00 # 2 5 INV. # 1234 G.E. TELEVISION SALE 4110 SALES - MOVIES 89.00 1010 CASH - CHECKING 89.00 [3-45] ---------------------------------------------------------------------------- 15-JAN-86 ADVANCED HOME ELECTRONICS Page 1 PURCHASE JOURNAL DECEMBER 1985 ---------------------------------------------------------------------------- TRAN # DAY REF / ACCT # DESCRIPTION DEBIT CREDIT ------ --- ------------- ----------------------- ----- ------ # 1 1 P.O. #1212 VCR ORDER - SUPPLIER #3 2110 ACCOUNTS PAYABLE 5000.00 1220 INVENTORY - VIDEO EQUIP. 5000.00 # 2 5 P.O. #2222 G.E. TELEVISION - 4546 W 1230 INVENTORY - T.V. EQUIP. 249.00 2110 ACCOUNTS PAYABLE 249.00 [3-46] ---------------------------------------------------------------------------- 15-JAN-86 ADVANCED HOME ELECTRONICS Page 1 CASH RECEIPTS JOURNAL DECEMBER 1985 ---------------------------------------------------------------------------- TRAN # DAY REF / ACCT # DESCRIPTION DEBIT CREDIT ------ --- ------------- ----------------------- ----- ------ # 1 2 CHECK #2222 CUST #2 - INVOICE #1212 1110 ACCOUNTS RECEIVABLE 250.00 1010 CASH - CHECKING 250.00 # 2 10 CK # 3333 PAYMENT - INVOICE # 1235 1110 ACCOUNTS RECEIVABLE 1200.00 1010 CASH - CHECKING 1200.00 [3-47] ---------------------------------------------------------------------------- 15-JAN-86 ADVANCED HOME ELECTRONICS Page 1 CASH DISBURSEMENTS JOURNAL DECEMBER 1985 ---------------------------------------------------------------------------- TRAN # DAY REF / ACCT # DESCRIPTION DEBIT CREDIT ------ --- ------------- ----------------------- ----- ------ # 1 15 CK # 2051 INV #1111 - SUPPLIER #1 2110 ACCOUNTS PAYABLE 5000.00 1010 CASH - CHECKING 5000.00 # 2 15 CK. # 6666 SUPPLIER # 3 - P.O. #1212 1010 CASH - CHECKING 5000.00 2110 ACCOUNTS PAYABLE 5000.00 [3-48] ------------------------------------------------------------------------------ A FULL RANGE OF TRANSACTION REPORTS IS RECOMMENDED BEFORE CLOSING A MONTH OF TRANSACTIONS, SINCE ALL TRANSACTION FILES WILL BE CLEARED DURING THE CLOSING PROCESS. TRANSACTION CAN BE USED AS HISTORICAL DOCUMENTS FOR EACH MONTH OF ACTIVITY. ------------------------------------------------------------------------------ PRINTING TRANSACTION AUDIT TRAIL REPORTS - Transaction audit reports are listings of Ledger accounts showing beginning balances, all transactions for the current month and ending balances. These listings provide a complete history of monthly account activities in a single document. That document can be filled with monthly closing reports for future reference, after the transaction files have been cleared. Transaction audit reports can also be useful during the month and at closing to locate specific transactions amounts for problem resolution. Transaction audit reports can be listed through the [PRINT AUDIT TRAIL] selection on the G/L Transaction menu in Diagram #3-41. The account selection screen in Diagram #3-42 allows you to list one or more specific accounts, or a complete audit of all accounts. {Diagram #3-41} [3-49] The audit report will show the journal, journal transaction number, date of entry, reference, transaction description and the Debit or Credit amount for each transaction. {Diagram #3-42} Audit reports are printed with the [PRINT] key at the bottom of the screen. An example of an audit trail report is included on the following page. [3-50] ---------------------------------------------------------------------------- 15-JAN-86 ADVANCED HOME ELECTRONICS Page 1 G/L AUDIT TRAIL DECEMBER 1985 ---------------------------------------------------------------------------- JNL TRAN DAY REFERENCE TRANSACTION DESCRIPTION DEBIT CREDIT ---------------------------------------------------------------------------- 1010 CASH - CHECKING BEGINNING BALANCE 53456.00 GJ 5 2 T.V. SALE 200.00 GJ 6 3 MOVIE SALE 50.00 GJ 7 1 DEC. TRANS. CORRECTING ENTRY - RENT 100.00 SJ 2 5 INV. # 1234 G.E. TELEVISION SALE 89.00 CRJ 1 2 CHECK #2222 CUST #2 - INVOICE #1212 250.00 CRJ 2 10 CK # 3333 PAYMENT - INVOICE #1235 1200.00 CDJ 1 15 CK # 2051 INV #1111 - SUPPLIER #1 5000.00 CDJ 2 15 CK. # 6666 SUPPLIER #3 - P.O.#1212 5000.00 ENDING BALANCE 45145.00 ------------------------------------------------------------------------------ 1020 CASH - SAVINGS BEGINNING BALANCE 53000.00 ------------------------------------------------------------------------------ 1030 CASH - PETTY BEGINNING BALANCE 250.00 ------------------------------------------------------------------------------ [3-51] POSTING TRANSACTIONS TO THE GENERAL LEDGER ACCOUNTS - Since monthly transaction data is very detailed information, it must be summarized by account number for ease of financial reporting. Posting, then, is the process of summarizing all individual transaction entries for the month with the same account numbers to obtain totals by G/L account number. These totals by G/L account are placed (posted) into a monthly G/L account file to be used for preparing reports such as Income Statements and Balance Sheets. The monthly file of detailed transaction activity is cleared after closing the the G/L accounts. This empty file is used again for additional transactions or for the next month of transaction data. The B.E.S.T. G/L system provides this service for you in a fast and easy to understand process. This short section will cover the steps needed for posting to the G/L accounts. ------------------------------------------------------------------------------ YOU WILL WANT TO MAKE A COPY OF THE DATA DISK BEFORE ANY POSTING ACTIVITY IS ATTEMPTED, TO ASSURE AN ADEQUATE BACKUP OF DATA IN CASE OF DISK TROUBLE DURING THE POSTING PROCESS. A COPY OF YOUR DATA DISK CAN BE MADE WITH AMIGA DOS DISK COPY PROCESSES. (A BACKUP COPY OF THE DATA DISK IS ADVISED AFTER EACH SIGNIFICANT SESSION TO ASSURE EASY RESTORATION OF YOUR FILES.) ------------------------------------------------------------------------------ [3-52] The [POST TRANSACTIONS] selection on the G/L Transactions menu in Diagram #3-43 produces the posting screen in Diagram #3-44. {Diagram #3-43} Individual journals, or all journals, can be posted in one session from the posting screen in Diagram #3-44. Mark the appropriate journal(s) by placing the arrow on the box and pressing the left mouse button. Activating the [POST] key will complete the posting process. [3-53] {Diagram #3-44} MONTHLY CLOSING - PREPARATION STEPS. Monthly closing is a very simple process in B.E.S.T. Business Management. If you review the sequence of activities on the G/L Transaction menu, you will notice a clear process has taken place prior to this step (monthly closing). The monthly transaction management process has followed the following steps. a) New transactions were entered (manually or automatically). b) Existing transactions were edited in the journals. c) Transaction listings were produced for each journal for permanent record. d) Audit trail reports by G/L account were printed for permanent record. e) Transactions were posted to the G/L monthly accounts and the transaction journals were cleared for use in the following month. [3-54] THE EFFECT OF CLOSING ON THE GENERAL LEDGER. Monthly closing will advance the Month on the G/L General Information calendar for each monthly closing during the company year. The Month AND year will be advanced when closing December for a year ending in December. Appropriate calendar changes will be made automatically, for company years ending with any month. If the monthly closing is also a yearly closing, accumulated Net Income for the 12 months will be converted to Retained Earnings. This new Retained Earnings will be added to any previous Retained Earnings (or subtracted from, if negative) and moved to the first month of the following year. Income and Expense accounts (4000 and 5000 G/L accounts) will begin the new year with a zero (0) balance. Balance Sheet accounts (1000, 2000 and 3000 G/L accounts) will carry the starting balance over from the prior year ending balance. CLOSING A MONTH. If the transaction journals have been posted and cleared, the monthly closing process can be completed from the [CLOSE MONTH] selection on the G/L Transaction menu (Diagram #3-45). The [CLOSE MONTH] option will produce the small Close Month screen in Diagram #3-46. If you are ready to close the month, the [CLOSE] key will complete the process in a few seconds. The Close Month screen also allows you to stop the closing process with the [CANCEL] key, if necessary. [3-55] {Diagram #3-45} ------------------------------------------------------------------------------ YOU WILL NEED TO COMPLETE THE CLOSING PROCESS AT THE END OF EACH MONTH TO ASSURE TRANSACTION POSTING TO APPROPRIATE MONTHS. ------------------------------------------------------------------------------ {Diagram #Diagram #3-46} [3-56] Normal transaction entry (manual or automatic) can be resumed after the month (or year) has been closed. [3-57] PREPARING CUSTOM FINANCIAL REPORTS The G/L Financial Report Writer is used for producing printed reports on account information. This section will cover the development of a sample report and show examples of several other management reports which are available upon request. The reporting system included in the General Ledger section has been designed to provide the most extensive reporting capability possible with the Amiga computer. Reporting is not confined to conventional Income Statements and Balance Sheets. Additional capability is included so that you may custom design many specialized reports. Customized reports are derived from the information contained in your Chart of Accounts. The Report Writer uses a specially designed screen entry process to construct the report, line by line, from the keyboard. The Report Writer also uses a set of special instructions or 'Dot Commands' to provide you with fast report formatting features such as underlined columns, indented columns, etc. You will find the Report Writer helpful in developing a number of useful reports from short, one-time-only, reports to very complex financial reports. REPORT WRITER DESIGN FEATURES - Custom reports are created, edited and/or deleted from the Report Writer menu in Diagram #3-48. The Financial Report Writer menu was called from the General Ledger main menu (Diagram #3-47). [3-58] {Diagram #3-47} From the Report Writer menu, you may create a new report, change (edit) an existing report or delete an existing report. The [CREATE A NEW REPORT] selection will be used for producing our example report. {Diagram #3-48} [3-59] The [CREATE A NEW REPORT] selection produces the screen in Diagram #3-49 which will be used as the basic design screen for all reports. Information can be entered into the design screen in almost any order but there are ways to make reports more attractive and manageable. This section will help you develop approaches to simplify and structure your reports. {Diagram #3-49} REPORT TITLE. The first entry that must be made is the name of the report. The Report Title can be any name containing up to 25 characters. The name of the report will appear on the existing report menu in exactly the same form as stated in the Report Title. Use the 'OK' key to save the title and continue. [3-60] ACCOUNT ENTRIES. There are five information entry fields on the report design screen in Diagram #3-49. The first two, 'From' and 'To', are used to enter the Chart of Account numbers needed for each line of the report. If a single account value is needed for a line in the report, it is entered in the 'From' filed. When the number is entered, the remaining fields for that line will be filled automatically. If a range of account numbers are needed to add up to a total, the begin- ning account in a series is entered in the 'From' field and the ending account number in the series is entered in the 'To' field. NORMAL BALANCE (NB). The 'NB' entry field is filled in by the system when an account number(s) is entered. The Normal Balance refers to the Debit or Credit balance the account normally carries. The debit or credit (D or C) is filled in automatically only with account number entries. This field MUST be filled in from the keyboard for summary levels. Examples of summaries will be shown later in this section. TOTAL LEVEL (TL). The Total Level is a number from one (1) to nine (9) that is assigned to each account line or account summary line. The Total Level is used to accumulate accounts or groups of accounts into a summary amount. The TL causes a total to be printed for all accounts listed above it on the report writer screen with a lower Total Level. For example, three Chart of Account numbers might be entered on three separate and consecutive lines. The system will fill in the TL field with a '1' for each of the accounts. If the next line of the report is to be a total of the three accounts, the summary line Total Level (TL) could be entered as a '2'. Entering a '2' will accumulate all previous lines containing a '1' until a '2' or larger TL is found. DESCRIPTION. The Chart of Accounts name for each of these numbers will be automatically written into the Description field as they are typed into the From/To areas. It will usually be necessary to change the Description if more than one account is summarized. If you wish to change the name of the Description line, you can move to the Description Field and blank the field or type over the existing information. [3-61] DOT COMMANDS. Dot commands are used to tell the Report Writer to handle individual lines of the report in a special manner. The dot commands are always entered on the program lines in the Description field. The dot (.), or period, must always be the first character entered. Dot Commands will be used in the report examples in the following pages. ------------------------------------------------------------------------------ A COMPLETE LIST OF DOT COMMANDS IS INCLUDED AT THE END OF THIS SECTION. ------------------------------------------------------------------------------ CREATING A NEW REPORT - The first line of our sample Income Report uses a range of income accounts (#4110 to #4410) to create a 'Percent Total' (Dot Command .%) condition. The result will be used on Income Statement type reports to calculate each line of the report as a 'Percent of Total Income'. This information will be very useful for examining company operating performance. {Diagram #3-50} [3-62] The 'income' and '-----' entries in Diagram #3-50 are custom labels which will be used to add style and definition to the final report. 'SALES INCOME' has been entered as another custom label to title a section of the report. The next entries for our example report are five sales accounts which have been entered manually. The remaining fields for these accounts have been filled by the system. (These five accounts could have been entered on one line using the .D'n' Dot Command OR by using the From/To method if only a total was desired.) UNDERLINING AMOUNT COLUMNS. Amount columns, such as we will produce with our five sales accounts, can be automatically underlined by using the .U'n' Dot Command in the Description field following the account or accounts to be underlined. Our example underlines each of the sales totals without specifying the number of dashes for the underline. ACCOUNT SUMMARIES. The 'TOTAL SALES' line is created manually from the keyboard to summarize the five sales accounts. Since the Normal Balance (Credit) is used by the sales accounts, a Credit balance is entered on the TOTAL SALES line to maintain the same relationship. The '2' in the TL (Total Level) column for TOTAL SALES has been used to total the five sales accounts (TL 1's). Once the level 1's have been totaled into a TL 2, the 1's are no longer used by later line totals. In Diagram #3-50, Account No. 4199 has been entered in the 'From' field and the remaining fields for the account have been filled by the system. The 'TOTAL SALES INCOME' was created from the keyboard to summarize the totals of 'TOTAL SALES' and 'SALES RETURNS & ALLOW.'. A CREDIT balance has been assigned to 'TOTAL SALES INCOME' since the sales accounts (#4110 to #4410) have CREDIT balances. The sales returns are effectively subtracted from sales by the DEBIT balance. A three (3) for Total Level (TL) has been used to summarize 'TOTAL SALE' and 'SALES RETURNS AND ALLOW.' You may choose to replace the TL '1' in 'SALES RETURNS AND ALLOW.' with a '2' to make the summary levels appear more consistent on the design screen. (See report listing.) [3-63] POSITIONING AMOUNT COLUMNS. Typically, more detailed information should be in the left column of a report, with higher level summary information moving to the columns to the right. This placement of amount columns on reports can be used to clarify the presentation of the information. The Sales account Description in Diagram #3-50 have been automatically placed to the far left of the Description field. A description placed to the far left will locate the data for that line in the first column of three possible columns on the report. A description indented one space will place the data in the center column on the report. Similarly, a description indented two spaces will place the data in the third (right) column of the report. The 'TOTAL SALES INCOME' Description has been manually indented ONE space to the RIGHT. Remember, indenting one space causes the dollar amount for 'TOTAL SALES INCOME' to be printed in the second column on the printed report. The results produced by indentation are shown on the Income Report in the next section. ------------------------------------------------------------------------------ WHEN NO INDENTATION IS USED, AMOUNT ARE POSITIONED IN THE LEFT HAND COLUMN OF THREE POSSIBLE COLUMNS ON THE REPORT PAGE. A ONE CHARACTER INDENTATION PLACES THE AMOUNTS IN THE SECOND OR MIDDLE COLUMN. INDENTING TWO CHARACTERS PLACES THE AMOUNTS IN THE RIGHT HAND COLUMN. ------------------------------------------------------------------------------ The line between Account No. 4199 and 'TOTAL SALES INCOME' is intentionally blank to separate the lines of the report for clarity. Blank lines can also be added with a Dot Command such as .S3 to skip three lines or a .S4 to skip four lines, etc. DETAILED ACCOUNT LISTINGS. Any continuous series of accounts can be included on a report without the need to list them on separate lines by using the .D'n' Dot Command. For example, the five sales accounts could have been listed by specifying Account #4110 in the 'From' field and Account #4190 in the 'To' field. The 'NB' and 'TL' fields could use the automatic 'C' and '1'. The Description, though, would be replaced by the Dot Command, .D2 to position the dollar amounts in the right hand column. [3-64] THINGS TO REMEMBER. There are a few hints that should clear up most general questions about writing reports. These hints are important key points to remember about Dot Commands and related report design features. 1) When an account (or a range of accounts such as #4110 to #4190) is used for determining the 'Percent of total'(.%), you will need to blank out (see Keyboard Commands in Appendix) the Normal Balance, Total Level and Line Description. The '.%' command can then be entered in the Description field. 2) Any entry in the Total Level area causes data to be printed in the report. If the Total Level is blanked out, the account values will not print. [3-65] Dot Command Descriptions ------------------------ Dot Command Purpose ----------- ------- .% Establishes a total of some number of accounts such as total income that will be used for analysis on 'Percent of Total' reports. Calculates each line item of the report as a percentage of this total (i.e., Rental Income as a Percentage of Total Income). This TOTAL LEVEL will be set to zero (0) if not specified. .D'n Provides a detailed list of accounts without selecting individual account numbers. The 'From' and 'To' fields are used to define the range of accounts needed in the listing. The 'n' specifies the number of columns of indentation for the series of accounts. .P Starts a new report page. You may wish to create another heading for additional pages of the report. If so, repeat the steps of the first header. The .P command is not required at the end of a report. .R80,* Produces a line of asterisks (*) 80 characters long. You can use any keyboard character and print any number of them up to the width of the report. These special characters useful for dressing up reports. .S3 Skips three lines before performing the next line of the program. Any number can be used for skipping lines. .U'n' Underlines the previous amount column with the num- ber of dashes you specify by 'n'. If a number is not specified, nine (9) dashes will be automatically used. PRINTING THE REPORT LISTING - A complete listing of the your Report Writer program can be printed with the [PRINT] Key on the Report Writer edit screen (Diagram #3-51). When you use the [PRINT] Key, another screen (Diagram #3-52) will appear to remind you to prepare your printer before starting the listing. [3-66] {Diagram #3-51} The complete report listing for the Income Report is included at the end of this section. {Diagram #3-52} [3-67] ---------------------------------------------------------------------------- 15-JAN-86 ADVANCED HOME ELECTRONICS Page 1 G/L CUSTOM REPORT INCOME REPORT ---------------------------------------------------------------------------- FROM TO LINE ACCT ACCT N/B T/L DESCRIPTION ----------------------------------------------------------------- 1 4110 4410 .% 2 INCOME 3 ****** 4 SALES INCOME 5 4110 4190 .D 6 .U 7 C 2 TOTAL SALES 8 9 LESS: 10 4199 D 1 SALES RETURNS AND ALLOW. 11 .U 12 C 3 TOTAL SALES INCOME 13 14 RENTAL INCOME 15 4210 C 1 RENTAL INCOME - MOVIES 16 4220 C 1 RENTAL INCOME - VCR'S 17 .U 18 C 3 TOTAL RENTAL INCOME 19 20 SERVICE INCOME 21 4320 C 1 SERVICE - VCR REPAIR 22 4330 C 1 SERVICE - T.V. REPAIR 23 4390 C 1 SERVICE - OTHER 24 .U 25 C 3 TOTAL SERVICE INCOME 26 .U 27 C 4 TOTAL OPERATING INCOME 28 29 4410 C 4 INTEREST INCOME 30 .U 31 32 C 5 TOTAL INCOME [3-68] EDITING AN EXISTING REPORT - The report editor is used to make changes to existing after tests of the report have been printed from the [FINANCIAL REPORTS] section on the Chart of Accounts main menu (described in the next section). {Diagram #3-53} The [EDIT AN ORIGINAL REPORT] selection on the Report Writer menu (Diagram #3-53) brings up the menu of existing programs in Diagram #3-54. Any of the programs on this list can be recalled for editing at any time. When an existing report is recalled to the screen for editing (Diagram #3-55), it will appear the same as the original report listing and can be changed using the same screen features as were used for the initial design. [3-69] {Diagram #3-54} ----------------------------------------------------------------------------- THE REPORT MUST BE SAVED USING THE [SAVE] KEY TO RETAIN ANY CHANGES MADE WHILE USING THE REPORT WRITER EDIT FUNCTION. ----------------------------------------------------------------------------- {Diagram #3-55} [3-70] DELETING AN EXISTING REPORT - Reports that were created with the Report Writer can be deleted from the system at any time through the [DELETE AN OLD REPORT] selection on the Financial Report Writer menu in Diagram #3-56. {Diagram #3-56} The [DELETE AN OLD REPORT] selection on the Financial Report Writer menu (Diagram #3-56) brings up the menu of existing reports shown in Diagram #3-57. The reports on this list can be recalled for deleting at any time. Selecting a report to delete from those listed in Diagram #3-57 will produce a warning screen (Diagram #3-58). You may continue with the [DELETE] Key or you can return to the Report Writer menu without deleting a report with the [CANCEL] Key. [3-71] {Diagram #3-57} ----------------------------------------------------------------------------- USE THE REPORT WRITER DELETE FUNCTION WITH CAUTION SINCE A REPORT THAT HAS BEEN DELETED CANNOT BE RECOVERED. DIAGRAM #3-58 SHOWS THE LAST MESSAGE YOU WILL SEE BEFORE A REPORT IS DELETED FROM THE SYSTEM. ----------------------------------------------------------------------------- {Diagram #3-58} [3-72] PRINTING FINANCIAL REPORTS The [FINANCIAL REPORTS] Selection on the General Ledger main menu produces the list of available reports on the G/L Financial Reports menu in Diagram #3-59. Each of the reports on the list can be used to produce many variations of the basic report. This section describes the process for printing many of the report variations. {Diagram #3-59} SETTING UP THE REPORT FORMAT - The selection screen in Diagram #3-60 is presented for each report requested from the available reports in Diagram #3-59. We will use the Income Report for out first example. [3-73] {Diagram #3-60} ----------------------------------------------------------------------------- IT IS IMPORTANT TO NOTE HERE THAT NO ADDITIONAL REPORT WRITING IS REQUIRED TO PRODUCE MANY VARIATIONS OF THE REPORTS CONTAINED IN THE REPORT FILE. THE REPORT FORMAT SELECTION SCREENS IS USED TO SELECT AND PRODUCE MANY REPORT VARIATIONS. ----------------------------------------------------------------------------- The selection screen is used to establish the type of report and the ending month (period). The screen is also used to request the addition of G/L account numbers on report lines, where appropriate, and to add a percent of total analysis. The three selection lines under 'Period Type' and 'Period Ends' in Diagram #3-60 are for defining one to three columns of output on a single report. A 'Report Type' may be a single month, a quarter or a full year. If a month is selected other than the last month of a quarter, the report will reflect a quarter-to-date. Similarly, if a month other than the last month of a year is selected, the report will reflect a year-to-date. The 'Period Type' is used for income and expense related reports, only. Balance sheet reports will automatically use year-to-date income and expense account accumulations. [3-74] ------------------------------------------------------------------------------ SINCE IT MAKES SENSE TO VIEW INCOME AND EXPENSES IN MONTH, QUARTER OR YEAR-TO-DATE FORMATS, ANY SELECTION CAN BE MADE FOR INCOME STATEMENTS. BALANCE SHEETS, HOWEVER, ARE STATEMENTS OF FINANCIAL POSITION AT A POINT IN TIME. THEREFORE, TO OBTAIN BALANCE SHEET TYPE REPORTS USE ONLY YEAR-TO-DATE FORMATS. ------------------------------------------------------------------------------ The 'Period Ends' area is defining the month and year of the report. This entry area will be illustrated in example reports in this section. MONTHLY REPORTS - Monthly financial reports are used to determine financial performance for income and expense related activities for a specific month. For example, after closing the Ledger for a month, an Income Statement can be produced for that month alone, without including results of prior months. The Income Report created in the Report Writer section can be used to illustrate these reports. SINGLE MONTH REPORT. For our first Income Report example in Diagram #3-61, we will produce a monthly report (M) for the month of October (10) in the year 1985 (85). In this example we will NOT request 'Account Numbers' or 'Percent of Totals'. The [PRINT] Key will present a screen as a reminder to prepare your printer. You can return to the selection screen with the [CANCEL] Key. [3-75] {Diagram #3-61} An example of a single month report is included at the end of this section. [3-76] ---------------------------------------------------------------------------- 15-JAN-86 ADVANCED HOME ELECTRONICS Page 1 INCOME REPORT OCTOBER 1985 ---------------------------------------------------------------------------- INCOME ------ SALES INCOME SALES - MOVIES 855.00 SALES - VIDEO EQUIP. 6,765.00 SALES - T.V. EQUIP. 3,956.00 SALES - ACCESSORIES 2,945.00 SALES - SERVICE PARTS 0.00 SALES - OTHER 205.00 --------- TOTAL SALES 14,726.00 LESS: SALES RETURNS AND ALLOW. 204.00 TOTAL SALES INCOME 14,522.00 RENTAL INCOME RENTAL INCOME - MOVIES 7,045.00 RENTAL INCOME - VCR'S 2,505.00 -------- TOTAL RENTAL INCOME 9,550.00 SERVICE INCOME SERVICE - VCR REPAIR 4,932.00 SERVICE - T.V. REPAIR 2,034.00 SERVICE - OTHER 968.00 -------- TOTAL SERVICE INCOME 7,934.00 -------- TOTAL OPERATING INCOME 32,006.00 INTEREST INCOME 99.00 --------- TOTAL INCOME 32,105.00 [3-77] MONTHLY COMPARISONS. Performance between months can be compared very easily using the same selection screen as for the previous reports. Comparison reports are similar to Monthly reports except that when two months are selected for comparison, differences (+/-) between the months are listed in a third column in terms of dollar variances. For example, the performance for the month of October 1985 can be compared with the performance for the month of November 1985. This type of report would be produced by filling in the report selections in line one and line two as in Diagram #3-62. {Diagram #3-62} The resulting comparison report is included at the end of this section. [3-78] ---------------------------------------------------------------------------- 15-JAN-86 ADVANCED HOME ELECTRONICS Page 1 INCOME REPORTS ---------------------------------------------------------------------------- OCT-85 NOV-85 CHANGE INCOME ------ SALES INCOME SALES - MOVIES 855.00 734.00 -121.00 SALES - VIDEO EQUIP. 6,765.00 9,345.00 2,580.00 SALES - T.V. EQUIP. 3,956.00 3,956.00 0.00 SALES - ACCESSORIES 2,945.00 1,945.00 -1,000.00 SALES - SERVICE PARTS 0.00 0.00 0.00 SALES - OTHER 205.00 125.00 -80.00 --------- --------- --------- TOTAL SALES 14,726.00 16,105.00 1,379.00 LESS: SALES RETURNS AND ALLOW. 204.00 125.00 -79.00 TOTAL SALES INCOME 14,522.00 15,980.00 1,458.00 RENTAL INCOME RENTAL INCOME - MOVIES 7,045.00 8,467.00 1,422.00 RENTAL INCOME - VCR'S 2,505.00 2,745.00 240.00 -------- --------- -------- TOTAL RENTAL INCOME 9,550.00 11,212.00 1,662.00 SERVICE INCOME SERVICE - VCR REPAIR 4,932.00 5,943.00 1,011.00 SERVICE - T.V. REPAIR 2,034.00 2,456.00 422.00 SERVICE - OTHER 968.00 385.00 -583.00 -------- -------- -------- TOTAL SERVICE INCOME 7,934.00 8,784.00 850.00 --------- --------- -------- TOTAL OPERATING INCOME 32,006.00 35,976.00 3,970.00 INTEREST INCOME 99.00 86.00 -13.00 --------- --------- -------- TOTAL INCOME 32,105.00 36,062.00 3,957.00 [3-79] THREE MONTH REPORTS. A single report can be used to display three months on one page. This kind of a report can be useful if you wish to detail the three months of a quarter reporting period. The required months would be specified on the selection screen in Diagram #3-63 as three individual months. {Diagram #3-63} An example of a three month report is included after this section. [3-80] ---------------------------------------------------------------------------- 15-JAN-86 ADVANCED HOME ELECTRONICS Page 1 INCOME REPORTS ---------------------------------------------------------------------------- OCT-85 NOV-85 OCT-85 INCOME ------ SALES INCOME SALES - MOVIES 855.00 734.00 855.00 SALES - VIDEO EQUIP. 6,765.00 9,345.00 6,765.00 SALES - T.V. EQUIP. 3,956.00 3,956.00 3,956.00 SALES - ACCESSORIES 2,945.00 1,945.00 2,945.00 SALES - SERVICE PARTS 0.00 0.00 0.00 SALES - OTHER 205.00 125.00 205.00 --------- --------- --------- TOTAL SALES 14,726.00 16,105.00 14,726.00 LESS: SALES RETURNS AND ALLOW. 204.00 125.00 204.00 TOTAL SALES INCOME 14,522.00 15,980.00 14,522.00 RENTAL INCOME RENTAL INCOME - MOVIES 7,045.00 8,467.00 7,045.00 RENTAL INCOME - VCR'S 2,505.00 2,745.00 2,505.00 -------- --------- -------- TOTAL RENTAL INCOME 9,550.00 11,212.00 9,550.00 SERVICE INCOME SERVICE - VCR REPAIR 4,932.00 5,943.00 4,932.00 SERVICE - T.V. REPAIR 2,034.00 2,456.00 2,034.00 SERVICE - OTHER 968.00 385.00 968.00 -------- -------- -------- TOTAL SERVICE INCOME 7,934.00 8,784.00 7,93400 --------- --------- --------- TOTAL OPERATING INCOME 32,006.00 35,976.00 32,006.00 INTEREST INCOME 99.00 86.00 99.00 --------- --------- --------- TOTAL INCOME 32,105.00 36,062.00 32,105.00 [3-81] ACCOUNT NUMBERS. Now let's add additional information to reports to produce more extensive reports from the basic Income Report format. In Diagram #3-64 we will include account numbers for the same report by answering 'Y' for yes to the 'Print Account Numbers' question. General Ledger account numbers can only be listed on single month reports due to the amount of space required on the printed report. {Diagram #3-64} An example report with account numbers is included at the end of this section. [3-82] ---------------------------------------------------------------------------- 15-JAN-86 ADVANCED HOME ELECTRONICS Page 1 INCOME REPORT OCTOBER 1985 ---------------------------------------------------------------------------- INCOME ------ SALES INCOME 4110 SALES - MOVIES 855.00 4120 SALES - VIDEO EQUIP. 6,765.00 4130 SALES - T.V. EQUIP. 3,956.00 4140 SALES - ACCESSORIES 2,945.00 4150 SALES - SERVICE PARTS 0.00 4190 SALES - OTHER 205.00 --------- TOTAL SALES 14,726.00 LESS: 4199 SALES RETURNS AND ALLOW. 204.00 --------- TOTAL SALES INCOME 14,522.00 RENTAL INCOME 4210 RENTAL INCOME - MOVIES 7,045.00 4220 RENTAL INCOME - VCR'S 2,505.00 -------- TOTAL RENTAL INCOME 9,550.00 SERVICE INCOME 4320 SERVICE - VCR REPAIR 4,932.00 4330 SERVICE - T.V. REPAIR 2,034.00 4390 SERVICE - OTHER 968.00 -------- TOTAL SERVICE INCOME 7,934.00 TOTAL OPERATING INCOME 32,006.00 4410 INTEREST INCOME 99.00 --------- TOTAL INCOME 32,105.00 [3-83] PERCENT OF TOTAL. Another important report available from the basic single month output format is the 'Percent of Total' report. This type of report is produced from the Dot Command, .%, discussed in the Report Writer section. This report will detail each line of the report as a percent of a pre-described amount from the Report Writer. Our example uses percent of total sales. A 'Percent of Total' report can be produced with the same selection screen as in Diagram #3-64. The 'Print Percent of Total' question would be answered with a 'Y' for yes. The 'Percent of Total' report format can only be used for one or two months of reporting due to the amount of printing space required. An example Percent of Total report is included at the end of this section. [3-84] ---------------------------------------------------------------------------- 15-JAN-86 ADVANCED HOME ELECTRONICS Page 1 INCOME REPORT OCTOBER 1985 ---------------------------------------------------------------------------- INCOME ------ SALES INCOME SALES - MOVIES 855.00 2.7% SALES - VIDEO EQUIP. 6,765.00 21.1% SALES - T.V. EQUIP. 3,956.00 12.3% SALES - ACCESSORIES 2,945.00 9.2% SALES - SERVICE PARTS 0.00 0.0% SALES - OTHER 205.00 0.6% --------- ----- TOTAL SALES 14,726.00 45.9% LESS: SALES RETURNS AND ALLOW. 204.00 0.6% TOTAL SALES INCOME 14,522.00 45.2% RENTAL INCOME RENTAL INCOME - MOVIES 7,045.00 21.9% RENTAL INCOME - VCR'S 2,505.00 7.8% --------- ----- TOTAL RENTAL INCOME 9,550.00 29.7% SERVICE INCOME SERVICE - VCR REPAIR 4,932.00 15.4% SERVICE - T.V. REPAIR 2,034.00 6.3% SERVICE - OTHER 968.00 3.0% --------- ----- TOTAL SERVICE INCOME 7,934.00 24.7% --------- ----- TOTAL OPERATING INCOME 32,006.00 99.7% INTEREST INCOME 99.00 0.3% --------- ------ TOTAL INCOME 32,105.00 100.0% [3-85] QUARTERLY REPORTS - Company quarters are determined by the order of months in your company calendar in the G/L General Information section. If you are using normal calendar years starting with January, the first quarter will include January, February and March. If your year does not begin in January, the first calendar month of your year will be used as the first month of the first quarter, etc. Quarter reports are produced with the same selection screen as the pre- vious reports. The 'Qtd' (quarter-to-date) selection in the 'Period Type' is used for quarterly reports. When the 'Qtd' selection is used, any months of information available for the quarter will be included in the report. If all three months are not available, the report will effectively become a quarter-to-date report rather than a quarter report. The 'Month' and 'Year' selections for a quarterly report need to be the ENDING month of the quarter and the Year containing the quarter. Multiple quarters can be included on the same report in the same manner as monthly reports. Additional quarters would use the other two lines on the selection screen. Comparison reports and Percent of Total reports are also available for quarterly reports. Diagram #3-65 shows the selection for a quarterly report (Q) for the quarter ending September (9) of 1985 (85). [3-86] {Diagram #3-65} An example of this quarterly report is included at the end of this section. You can follow the guidelines of the monthly reports in the previous section to produce other forms of quarterly reports. [3-87] ---------------------------------------------------------------------------- 15-JAN-86 ADVANCED HOME ELECTRONICS Page 1 INCOME REPORT QTD - SEPTEMBER 1985 ---------------------------------------------------------------------------- INCOME ------ SALES INCOME SALES - MOVIES 5,632.00 SALES - VIDEO EQUIP. 18,098.00 SALES - T.V. EQUIP. 6,619.00 SALES - ACCESSORIES 5,035.00 SALES - SERVICE PARTS 0.00 SALES - OTHER 295.00 --------- TOTAL SALES 35,679.00 LESS: SALES RETURNS AND ALLOW. 376.00 TOTAL SALES INCOME 35,303.00 RENTAL INCOME RENTAL INCOME - MOVIES 19,020.00 RENTAL INCOME - VCR'S 5,794.00 --------- TOTAL RENTAL INCOME 24,814.00 SERVICE INCOME SERVICE - VCR REPAIR 10,705.00 SERVICE - T.V. REPAIR 4,835.00 SERVICE - OTHER 1,734.00 --------- TOTAL SERVICE INCOME 17,274.00 --------- TOTAL OPERATING INCOME 77,391.00 INTEREST INCOME 267.00 --------- TOTAL INCOME 77,658.00 [3-88] YEARLY REPORTS - Years for reports are determined by the company calendar in the G/L General Information section. Yearly reports are produced with the same selection screen as the previous reports. The 'Ytd' (year-to-date) selection in the 'Period Type' is used for yearly reports. When the 'Ytd' selection is used, any months of information available for the year will effectively become a year-to-date report rather than a yearly report. The 'Month' and 'Year' selections for a yearly report need to be the ENDING month of the year and the year of the report. The year for a company NOT using a normal calendar year is determined by the year containing the first month of the company year. Multiple years can be included on the same report in the same manner as for other reports. Additional years would use the other two lines on the selection screen. Comparison reports and Percent of Total reports are also available for yearly reports. Diagram #3-66 shows the selection for a yearly report (Y) for the year ending December (12) of 1985 (85). [3-89] {Diagram #3-66} An example of this yearly report is included at the end of this section. You can follow the guidelines of the yearly reports in the previous section to produce other forms of yearly reports. [3-90] ---------------------------------------------------------------------------- 15-JAN-86 ADVANCED HOME ELECTRONICS Page 1 INCOME REPORT YTD - DECEMBER 1985 ---------------------------------------------------------------------------- INCOME ------ SALES INCOME SALES - MOVIES 65,803.00 SALES - VIDEO EQUIP. 112,866.00 SALES - T.V. EQUIP. 41,021.00 SALES - ACCESSORIES 24,507.00 SALES - SERVICE PARTS 0.00 SALES - OTHER 2,960.00 ---------- TOTAL SALES 247,157.00 LESS: SALES RETURNS AND ALLOW. 2,039.00 TOTAL SALES INCOME 245,118.00 RENTAL INCOME RENTAL INCOME - MOVIES 83,781.00 RENTAL INCOME - VCR'S 25,637.00 --------- TOTAL RENTAL INCOME 109,418.00 SERVICE INCOME SERVICE - VCR REPAIR 49,497.00 SERVICE - T.V. REPAIR 21,238.00 SERVICE - OTHER 6,708.00 --------- TOTAL SERVICE INCOME 77,443.00 --------- TOTAL OPERATING INCOME 431,979.00 INTEREST INCOME 1,864.00 ---------- TOTAL INCOME 433,843.00 [3-91] INCOME STATEMENTS - A sample INCOME STATEMENT is included in the list of report examples on the next pages. This sample Income Statement can be used as a guide for you to produce a custom report for your business. You will notice that it is an expanded version of the INCOME REPORT we have been using for examples. ------------------------------------------------------------------------------ THE INCOME STATEMENT WILL BE ONE OF THE MOST IMPORTANT OF YOUR ON-GOING FINANCIAL REPORTS, SINCE IT WILL BE USED TO TEST YOUR OWN PROFITABILITY. IT WILL FREQUENTLY BE REQUESTED BY SUPPLIERS AND FINANCIAL INSTITUTIONS. ------------------------------------------------------------------------------ The Income Statement has been selected from the list of reports on the G/L Financial Reports menu in Diagram #3-67. The Income Statement example uses the selection screen (Diagram #3-68) to establish the desired format for the printed report. {Diagram #3-67} [3-92] The example report uses a monthly format (M) for the month of November (11) of 1985 (85). This selection will produce a report including information for the month of November, only. Other variations of this report such as quarter-to-date and year-to-date can be developed using the same selection processes described in the previous sections. {Diagram #3-68} The Report Writer listing and the Income Statement have been included to help you with the development of your own report. The listing of the report follows the Income Statement. [3-93] ---------------------------------------------------------------------------- 15-JAN-86 ADVANCED HOME ELECTRONICS Page 1 INCOME STATEMENT NOVEMBER 1985 ---------------------------------------------------------------------------- INCOME SALES INCOME 16,105.00 LESS: SALES RETURNS AND AL 125.00 --------- TOTAL SALES INCOME 15,980.00 TOTAL RENTAL INCOME 11,212.00 TOTAL SERVICE INCOME 8,784.00 --------- TOTAL INCOME 35,976.00 COST OF GOODS SOLD 6,745.00 --------- GROSS PROFIT 29,231.00 OPERATING EXPENSES SALARY EXPENSES 2,195.00 EMPLOYEE INSURANCE 165.00 FEES - LEGAL 0.00 FEES - ACCOUNTING 0.00 RENT 700.00 TELEPHONE 256.00 UTILITIES 45.00 POSTAGE AND MAILING 14.00 OFFICE SUPPLIES 67.00 ADVERTISING 706.00 INTEREST EXPENSE 45.00 DEPRECIATION 1,400.00 MISCELLANEOUS EXPENSE 33.00 -------- TOTAL OPERATING EXPENSES 5,626.00 --------- NET OPERATING INCOME 23,605.00 NON-OPERATING INCOME 86.00 --------- NET INCOME 23,691.00 [3-94] ---------------------------------------------------------------------------- 15-JAN-86 ADVANCED HOME ELECTRONICS Page 1 G/L CUSTOM REPORT INCOME STATEMENT ---------------------------------------------------------------------------- FROM TO LINE ACCT ACCT N/B T/L DESCRIPTION ---- ---- ---- --- --- ------------------------------- 1 4000 4999 .% 2 INCOME 3 4110 4190 C 1 SALES INCOME 4 4199 D 1 LESS: SALES RETURNS AND ALL. 5 .U10 6 C 3 TOTAL SALES INCOME 7 4210 4220 C 3 TOTAL RENTAL INCOME 8 4320 4390 C 3 TOTAL SERVICE INCOME 9 .U10 10 C 4 TOTAL INCOME 11 12 5110 5199 D 4 COST OF GOODS SOLD 13 .U10 14 15 C 5 GROSS PROFIT 16 17 OPERATING EXPENSES 18 5210 D 1 SALARY EXPENSE 19 5220 D 1 EMPLOYEE INSURANCE 20 5410 D 1 FEES - LEGAL 21 5420 D 1 FEES - ACCOUNTING 22 5510 D 1 RENT 23 5520 D 1 TELEPHONE 24 5530 D 1 UTILITIES 25 5540 D 1 POSTAGE AND MAILING 26 5550 D 1 OFFICE SUPPLIES 27 5610 D 1 ADVERTISING 28 5910 D 1 INTEREST EXPENSE 29 5920 D 1 DEPRECIATION EXPENSE 30 5990 D 1 MISCELLANEOUS EXPENSE 31 .U10 32 D 5 TOTAL OPERATING EXPENSES 33 .U10 34 35 C 6 NET OPERATING INCOME 36 37 4410 C 6 NON-OPERATING INCOME 38 .U10 39 C 7 NET INCOME [3-95] BALANCE SHEETS - A Balance Sheet is a financial statement indicating the total assets, total liabilities and total equity of a company at a point in time. This is an important and frequently used report that is generally used along with the Income Statement to provide an overview of the financial strength and earning ability of the company. Complete Balance Sheet reports can be developed using the Report Writer and printed with the reporting system in this section. ------------------------------------------------------------------------------ BALANCE SHEET TYPE REPORTS USE YEAR-TO-DATE REPORTING ONLY. AVOID USING MONTHLY OR QUARTERLY REPORTING ALTERNATIVES, SINCE THE BALANCE SHEET MUST REPRESENT ONLY THE CURRENT BALANCE OF ASSETS AND LIABILITIES AND YEAR-TO-DATE NET INCOME. ------------------------------------------------------------------------------ The example Balance Sheet report was developed with the Report Writer. Once it has been developed, it will appear on the Financial Report screen (Diagram #3-69) as an available report. The Balance Sheet report uses the same selection screen (Diagram #3-70) as other reports. {Diagram #3-69} [3-96] The 'Period Type' for our Balance Sheet uses a 'Y' for year-to-date. The 'Period Ends' selection uses the month of November (11) and the year 1985 (85). {Diagram #3-70} A copy of the Report Writer listing and the Balance Sheet have been included in this section to help you generate a customized report for your use. [3-97] ---------------------------------------------------------------------------- 15-JAN-86 ADVANCED HOME ELECTRONICS Page 1 BALANCE SHEET NOVEMBER 1985 ---------------------------------------------------------------------------- ASSETS ------ CASH 77,661.00 ACCOUNTS RECEIVABLE 16,345.00 INVENTORY 223,112.00 ---------- CURRENT ASSETS 317,128.00 EQUIPMENT 74,753.00 FURNITURE AND FIXTURES 21,904.00 OFFICE EQUIPMENT 6,540.00 ---------- FIXED ASSETS 103,197.00 LESS: ACCUM. DEPRECIATION -46,845.00 ---------- NET FIXED ASSETS 56,352.00 ---------- TOTAL ASSETS 373,048.00 LIABILITIES & EQUITY -------------------- LIABILITIES ACCOUNT PAYABLE 1,956.00 NOTES PAYABLE 0.00 FEDERAL TAXES WITHHELD 1,010.00 STATE TAXES WITHHELD 280.00 F.I.C.A. WITHHELD 480.00 ---------- CURRENT LIABILITIES 3,726.00 NOTES PAYABLE 0.00 ----------- TOTAL LIABILITIES 3,726.00 EQUITY CAPITAL STOCK 50,000.00 RETAINED EARNINGS 122,384.00 NET INCOME (YTD) 197,370.00 ---------- TOTAL EQUITY 369,754.00 ---------- LIABILITIES AND EQUITY 373,480.00 [3-98] ---------------------------------------------------------------------------- 15-JAN-86 ADVANCED HOME ELECTRONICS Page 1 G/L CUSTOM REPORT BALANCE SHEET ---------------------------------------------------------------------------- FROM TO LINE ACCT ACCT N/B T/L DESCRIPTION ---- ---- ---- --- --- ------------------------------- 1 ASSETS 2 ------ 3 4 1010 1030 D 1 CASH 5 1110 D 1 ACCOUNTS RECEIVABLE 6 1210 1299 D 1 INVENTORY 7 .U10 8 D 3 CURRENT ASSETS 9 10 1310 1320 D 1 EQUIPMENT 11 1330 D 1 FURNITURE AND FIXTURES 12 1340 D 1 OFFICE EQUIPMENT 13 .U10 14 D 2 FIXED ASSETS 15 1400 D 2 LESS: ACCUM. DEPRECIATION 16 .U10 17 D 3 NET FIXED ASSETS 18 .U10 19 20 D 4 TOTAL ASSETS 21 22 23 24 LIABILITIES AND EQUITY 25 ---------------------- 26 27 LIABILITIES 28 2110 C 1 ACCOUNTS PAYABLE 29 2210 C 1 FEDERAL TAX WITHHELD 30 2220 C 1 STATE TAX WITHHELD 31 2230 C 1 F.I.C.A. WITHHELD 32 .U10 33 C 2 CURRENT LIABILITIES 34 35 2120 C 2 NOTES PAYABLE 36 .U10 37 C 3 TOTAL LIABILITIES 38 39 EQUITY 40 3100 C 1 CAPITAL STOCK 41 3200 C 1 RETAINED EARNINGS 42 4110 5999 C 1 NET INCOME 43 .U10 44 C 3 TOTAL EQUITY 45 .U10 46 47 C 4 LIABILITIES AND EQUITY [3-99] SPECIAL PURPOSE REPORTS - The custom report writing and printing capabilities of this reporting system can provide you with a variety of special purpose reports for managing the General Ledger system and managing your business. The report on the following pages is an example of a special purpose report that might be used for managing your G/L system. A Monthly Listing report could be used to test the content of your Chart of Accounts and to provide an off-line listing of the accounts for reference. You can develop many types of reports to suit your specific need as you gain confidence and experience with the Report Writer and report generation process. [3-100] ---------------------------------------------------------------------------- 15-JAN-86 ADVANCED HOME ELECTRONICS Page 1 EXPENSE ACCOUNT BALANCE DECEMBER 1985 ---------------------------------------------------------------------------- EXPENSES -------- 5110 COS - MOVIES 856.00 5120 COS - VIDEO EQUIP. 18,459.00 5130 COS - T.V. EQUIP. 11,095.00 5140 COS - ACCESSORIES 955.00 5150 COS - SERVICE PARTS 0.00 5190 COS - OTHER SALES 120.00 5199 PURCHASE RETURNS 154.00 5210 SALARY EXPENSE 3,550.00 5220 EMPLOYEE INSURANCE 165.00 5410 FEES - LEGAL 0.00 5420 FEES - ACCOUNTING 0.00 5510 RENT 700.00 5520 TELEPHONE 245.00 5530 UTILITIES 45.00 5540 POSTAGE AND MAILING 31.00 5550 OFFICE SUPPLIES 78.00 5610 ADVERTISING 865.00 5910 INTEREST EXPENSE 64.00 5920 DEPRECIATION EXPENSE 1,400.00 5990 --------- TOTAL EXPENSES 38,709.00 [3-101] ---------------------------------------------------------------------------- 15-JAN-86 ADVANCED HOME ELECTRONICS Page 1 G/L CUSTOM REPORT EXPENSE ACCOUNT BALANCES ---------------------------------------------------------------------------- FROM TO LINE ACCT ACCT N/B T/L DESCRIPTION ---- ---- ---- --- --- --------------------------- 1 EXPENSES 2 -------- 3 5110 5990 D 1 .D2 4 .U 5 D 2 TOTAL EXPENSES [3-102] INTRODUCTION TO ACCOUNTS RECEIVABLE MANAGEMENT The purpose of this section is to introduce you to accounts receivable management. This section: a) Describes accounts receivable management b) Examines the benefits of effective receivables management c) Introduces the Accounts Receivable section of B.E.S.T. Business Management. Most businesses, where accounts are established for customers to pay for purchases or services, reach a point where a manual process for maintain- ing accounts and preparing billings becomes overwhelming. The process can absorb a significant amount of your time and energy which could be better utilized elsewhere in the business. From the point of view of cash management, outstanding cash tied up in customer accounts can represent a significant investment. Therefore, effec- tive management of receivables can improve the vitality and financial posi- tion of your company. Conversely, ineffective management of receivables can deteriorate the operating position of your company as easily as reduced sales, excessive inventories, or other out of control expenses. WHAT IS ACCOUNTS RECEIVABLE MANAGEMENT? - Accounts receivable management is a process for maintaining visibility of cash due from customers for sales or services rendered. Receivables are those amounts of cash due on open accounts. Receivables do not include "over the counter" sales where cash payments is received upon delivery of the goods or services. AN INFORMATION SYSTEM. The first requirement of an accounts receivable system, manual or computer-aided, is to provide a source of information. Receivables information may include: [4-1] a) Customer addresses, contacts, etc. b) Charge amounts and dates c) Payment amounts and dates d) Interest and tax charges e) Interest and tax payments f) Account status g) Account limits This information can be selected, accumulated and sorted many ways for management information. The speed and efficiency of preparing reports from this information base, though will depend upon: a) The amount of information available b) Your current skills and experience c) The complexity of the reports d) The amount and quality of computer support available A MANAGEMENT DISCIPLINE. Receivables management is a management discipline, since proper management of receivables, manual or computer-aided, requires a dedication to data collection, processing and reporting. There is little room for inconsistent maintenance of the process without degrading the quality of the information and reports. When sufficient discipline is applied to assure a routine receivables management process, your time and effort will usually be reduced due to increased knowledge and experience. The discipline required for informa- tion maintenance results in more stable and efficient management of the accounts receivable process. A COMMUNICATIONS PROCESS. When an ability exists to produce meaningful management information from an accounts receivable system, a number of significant communications links begin to be established. First, the sources, amounts and lengths of time past due can be communicated to all members of your company for decision making on credit extensions, credit limits, collection procedures, etc. [4-2] Also, better communications can be established between you and your customers when a regular and informative billing process is introduced. Regular billing keeps your company name in front of the customer to encourage return business and to improve payment performance on current balances. One of the most important communications links that can be improved is the link between you and your accountant. Up to date summary information on account balances can be of considerable help to your accountant in advising you on ways to improve your receivables management. THE B.E.S.T. BUSINESS MANAGEMENT ACCOUNTS RECEIVABLE SYSTEM - The B.E.S.T. system encompasses a full range of receivables management features normally associated with much more costly software AND hardware combinations. The flexible file size approach provides enough capacity to satisfy almost any small to medium sized business requirement. Design techniques used in this system provide for very fast data entry, data recall and report generation without sacrificing functions or capacity. Also, your data entries are automatically checked to assure that only appropriate entries are made. Errors are trapped by the program before any harm can be done and a message is printed on the screen to notify you of the error and of corrective action required, whenever possible. Pre-designed reports can be generated quickly from report menus. HOW CAN THE B.E.S.T. A/R SYSTEM BENEFIT YOUR BUSINESS? - A number of specific benefits are available with the B.E.S.T. Business Management Accounts Receivable section. They can add considerable value to your business management processes. [4-3] IMPROVED CUSTOMER ACCOUNT STRATEGIES. The availability of accurate historical data on specific receivables issues such as the size, age and origin of open accounts, allows more effective analysis and decision making on account limits, interest charges, billing practices, etc. As an example, historical information produced from receivables data could help to determine appropriate account limits and protect you from unacceptable outstanding account balances. IMPROVED PERFORMANCE MEASUREMENT. The speed and efficiency available from computerized system allows you to establish and track account performance measures in ways not possible with manual methods. For instance, extensive current and historical information can be quickly accumulated and analyzed to establish account aging and current balance positions, establishing a basis for setting improvement objectives. Similar information can then be monitored on an on-going basis to test for improvement. Also, the establishment of receivables performance measures and the implementation of on-going performance measurement provides the basis for profit planning. For example, lowering of limits or closing slow accounts and increasing limits on exceptional accounts can reduce the level of out- standing cash balances and increase sales at the same time. Approaches such as this could re-structure the profit picture of your company. IMPROVED ACCOUNT TRACKING. The key differences between computer-aided and manual receivables management systems are the breadth and depth of information available on demand and the time savings made available once the basic information has been stored in the computer. The B.E.S.T. system will improve your ability to track individual accounts with much less effort than any manual process. It will replace your manual process with a much faster, more complete and more accurate process. IMPROVED CUSTOMER SERVICE. A computer-based receivables system can service customer inquiries by providing rapid recall of current information (i.e., status on credit limits, current balances, current status, etc.) that cannot be supported by a manual system. Also, rapid checks on account limits and status can be made at the time of purchase to assure that charges are not being made to questionable accounts. [4-4] Another important customer service that is easily supported by the B.E.S.T. system is the monthly billing process. Manual billing can be very time consuming, even with a small number of accounts, but even large billings become fairly routine with the aid of this system. IMPROVED CASH FLOW. Since outstanding receivables can tie up a significant amount of your current assets and can become a large part of the investment base of your business, management of those accounts should be recognized as an important process affecting business performance. Information providing the amount and composition of receivables can be a significant contributor to improving the cash position of your firm. For instance, the ability to quickly identify individual accounts with consistently long repayment records can allow you to concentrate your efforts on specific problem areas. Many of the cost control features of receivables management are addressed throughout the remaining chapters of this manual. In summary, the combination of software design features and exceptional hardware capability provides a state-of-the-art productivity package that will be easy and effective for you to use, whether you are a computer novice or an experienced computer user. You will gain confidence in MINUTES, rather than days or weeks, with immediate results to show for your time, effort and EXPENSE. [4-5] ACCOUNTS RECEIVABLE SYSTEM MENU This section provides a brief overview of the major functions available within the Accounts Receivable menu selections. ------------------------------------------------------------------------------ MOST ACCOUNTING ENTRIES WILL BE PERFORMED AUTOMATICALLY ONCE YOU HAVE SET UP INDIVIDUAL CUSTOMER ACCOUNTS, PAYMENT TERMS AND GENERAL ACCOUNTS RECEIVABLE INFORMATION. THE ACCOUNTS RECEIVABLE SYSTEM MAY BE USED INDEPENDENTLY OF THE OTHER SYSTEMS, IF DESIRED. ------------------------------------------------------------------------------ The Accounts Receivable menu (Diagram #4-1) is accessed from [ACCOUNTS RECEIVABLE] selection on the Main Menu. A brief overview of each of the selections in the Accounts Receivable Menu is provided below. {Diagram #4-1} [4-6] ADD NEW CUSTOMERS - This selection is used for entering new customer accounts into the Accounts Receivable system. Only general customer information required to establish the account is entered in this section. EDIT EXISTING CUSTOMERS - The edit selection is used to enter beginning account transaction informa- tion when setting up the Accounts Receivable system for the first time, and to change the general customer information which was entered through the Add New Customer selection. MONTHLY PROCESSING - Monthly Processing contains a series of short steps used to update account aging, apply finance charges, print monthly statements, collapse accounts and clear to-date accumulations. Statements may be generated automatically from open accounts or created from the keyboard for selective billings. REPORTS - The reports section provides reporting capability for producing: a) Account aging reports b) Customer sales ranking reports c) Customer account summary reports d) Customer lists PAYMENT TERMS - The payment terms section is used to establish payment terms and conditions which can be applied to individual accounts. Up to nine (9) different sets of terms and conditions can be maintained. STATEMENT MESSAGES - The second setup is for establishing messages to print on statements. Four custom messages can be used such as for different steps of account aging. [4-7] SYSTEM MENU - This selection is used to RETURN to the Management System Main Menu after completing Accounts Receivable activities. Each of the selections on the Accounts Receivable menu are covered in detail in the following sections using examples and illustrations whenever possible. [4-8] ACCOUNTS RECEIVABLE SETUP FILES Accounts Receivable setup files are used to establish customer payment terms and customized messages for monthly statements. These setup files should be reviewed before continuing with the Accounts Receivable process. {Diagram #4-2} [4-9] {Diagram #4-3} PAYMENT TERMS - The [PAYMENT TERMS] screen key on the A/R Setup menu in Diagram #4-3 brings up the payment terms screen in Diagram #4-4. This screen is used to develop customized payment terms. One of the terms will be assigned to each customer as your preferred method of payment by that customer. Also, any of the payment terms on this screen can will be assigned to customer invoices at the time of invoicing. [4-10] {Diagram #4-4} Each of the elements within the payment terms is discussed below. DISCOUNT PERCENT. The 'Disc %' field in Diagram #4-4 defines the discount (if any) you choose to extend to the customer if FULL payment is received within a shorter period of time than required by the regular invoice payment date. The discount is stated in percent with fractions of a percent such as .250 used to define partial percentages. This discount is used to encourage early payments. DISCOUNT DAYS. The 'Disc Days' field defines the payment period in days required to take advantage of the discount percent. Payment received beyond the discount days will not discount the receivable amount. NET DAYS. 'Net Days' is the number of days assigned to an invoice for normal payment. For example, typical payment terms for an invoice may be 'Net 30', which would mean the entire amount of the invoice is due in 30 days. In this example, a payment made after 30 days would be late. LATE PERCENT. The 'Late %' entry is a percentage of the amount due which is charged to accounts for late payments. The charge stated in percent with fractions stated as decimals. A late charge is not a finance charge but an added cost for late payment. Finance charges would be an additional charge for all accounts with positive monthly balances. [4-11] DESCRIPTION. The 'Description' field is used for you to describe the terms of the sale in your own words. This field does not directly affect the terms condition. The screen in Diagram #4-5 illustrates a variety of possible payment terms. Use these examples to create your own specific payment terms. {Diagram #4-5} The terms created with the Payment Terms screen in Diagram #4-5 are automatically interpreted by the system when payments are made against an account. All conditions of the terms applied to invoices are checked when a payment is made against that invoice. Appropriate actions are taken and recorded automatically within the customer file as required by the terms. The A/R Payment Terms screen in Diagram #4-5 MUST be saved with the [SAVE] Key to place the payment terms into service. Terms will be illustrated with example transactions in the A/R Account Maintenance section. STATEMENT MESSAGES - The message section is used to create customized notes to customers which will be printed on monthly statements. These notes can contain reminders, serious requests or any other message you may find appropriate. [4-12] The Statement Messages screen in Diagram #4-7 is accessed from the A/R Main menu in Diagram #4-6. A separate message area is available for each of the account aging periods. {Diagram #4-6} The Statement Message screen in Diagram #4-6 MUST be saved with the [SAVE] Key to place the statement messages into service. {Diagram #4-7} [4-13] The following screens provide examples of Statement Messages. {Diagram #4-8} (below) STATEMENT MESSAGES ------------------------------------- Past Due DID YOU FORGET ABOUT US LAST MONTH? (1-30) Past Due THANK YOU FOR YOUR PAYMENT IF (31-60) IT IS IN THE MAIL Past Due PLEASE CALL SO WE MAY HELP YOU (61-90) WITH ARRANGEMENTS FOR PAYMENT Past Due WE MUST HAVE YOUR ACCOUNT UP TO DATE (91+) --- WITHIN 15 DAYS --- {Diagram #4-9} STATEMENT MESSAGES ------------------------------------- Past Due THANK YOU FOR YOUR RECENT PAYMENT (1-30) Past Due THANK YOU FOR YOUR PAYMENT IF (31-60) IT HAS BEEN MAILED! Past Due PLEASE CALL SO WE MAY HELP YOU (61-90) WITH ARRANGEMENTS TO BRING YOUR ACCOUNT UP TO DATE Past Due WE MUST HAVE YOUR ACCOUNT UP TO DATE (91+) --- WITHIN 15 DAYS --- YOUR OPEN ACCOUNTS IS ON HOLD [4-14] {Diagram #4-10} STATEMENT MESSAGES ------------------------------------- Past Due YOUR ACCOUNT IS NOW PAST DUE (1-30) THANK YOU IF YOUR PAYMENT HAS BEEN MAILED. Past Due A PAYMENT WOULD BE APPRECIATED! (31-60) THANK YOU. Past Due PLEASE BRING YOUR ACCOUNT UP TO DATE (61-90) -- OR-- CONTACT US AT ONCE Past Due IF WE DO NOT HERE FROM YOU WITHIN TEN (91+) DAYS. IT WILL BE NECESSARY TO TURN YOUR ACCOUNT OVER TO COLLECTIONS. An example of a message printed on a Statement form is included on the following page. [4-15] ADVANCED HOME ELECTRONICS P.O. BOX 1245 MC MINNVILLE, OREGON 97128 DATE -------------- 06/16/86 -------------- ACCOUNT NUMBER -------------- 1005 JAMES R. WILSON 12343 S.W. COMSTOCK PORTLAND, OREGON 97274 AMOUNT ENCLOSED $ ------------- PLEASE RETURN THIS PORTION WITH PAYMENT ------------------------------------------------------------------------------ DATE CHARGES AND CREDITS AMOUNT ------------------------------------------------------------------------------ 04/01/86 INVOICE #1111 100.00 05/11/86 PAYMENT CK #1111 -100.00 04/15/86 INVOICE # 2222 200.00 05/11/86 PAYMENT CK #1111 -150.00 05/10/86 INVOICE # 3333 300.00 06/01/86 INVOICE # 4444 400.00 06/15/86 INVOICE # 5555 500.00 BALANCE 1250.00 Y-T-D FINANCE CHARGES 0.00 YOUR ACCOUNT IS PAST DUE ! ------------------------------------------------------------------------------ CURRENT PAST DUE ------------------------------------------------------------------------------ (1-30 DAYS) (31-60 DAYS) (61-90 DAYS) (OVER 90 DAYS) 900.00 300.00 50.00 0.00 0.00 ------------------------------------------------------------------------------ 1 - ADVANCED HOME ELECTRONICS [4-16] ESTABLISHING AND MANAGING CUSTOMER ACCOUNTS This section provides a detailed description of the processes used to enter information into the Accounts Receivable customer files and to change or delete that information. Data such as customer addresses, key contacts, credit limits, etc., as well as on-going charges and payments to accounts will be described. {Diagram #4-11} Customer account creation and editing is performed from the [ADD CUSTOMERS] and [EDIT EXISTING CUSTOMERS] selections on the Accounts Receivable menu in Diagram #4-11. This section will discuss these two options on the A/R menu. [4-17] {Diagram #4-12} ADDING NEW CUSTOMERS - New customers are added to the customer files from the [ADD NEW CUSTOMERS] selection on the A/R menu. The [ADD NEW CUSTOMERS] key will produce the customer screen in Diagram #4-12. The Add New Customers screen is the information entry screen for creating new customer accounts. Each of the items in this section will be discussed in detail on the following pages. GENERAL CUSTOMER INFORMATION. General information relating to the customer is entered in the upper section of the screen. The 'Customer #' can be any combination of letters and numbers you may wish to use to describe a customer. For instance, accounts may be assigned only numbers, may be made up of the leading letters of the customer name, or may be any combination of numbers and letters. ------------------------------------------------------------------------------ CARE SHOULD BE TAKEN WHEN DETERMINING YOUR METHOD OF NUMBERING CUSTOMERS, SINCE CUSTOMER ACCOUNTS WILL BE STORED IN CUSTOMER NUMBER ORDER AND CUSTOMER FILES ARE SCANNED ON THE CUSTOMER EDIT SCREEN IN CUSTOMER NUMBER ORDER. ------------------------------------------------------------------------------ [4-18] The 'Name' field is the name of the customer or company as you wish to use it on invoices, statements, etc. The customer name will become a regular part of customer mailing information. The 'Addr' field is the mailing address of the individual or company referred to in the 'Name' field. This field will be used as the mailing address on invoices, statements, etc. The 'Contact' field is the name of your primary contact with the customer if the customer is a company. The person's name would be used in the 'Name' field if the customer is an individual. The 'Phone #' can be any phone number used to contact the customer. It is a good idea to use the same numbering process for all telephone numbers to simplify auditing of customer information. Phone numbers and other such data will be easier to read and audit when printed in the same format such as (503) 555-5555. CURRENT ACCOUNT CONDITION. The lower left section of the new customer entry screen is for information relating to the current condition of the account. The 'Current' field is the amount owing on the account which is not yet late according to the terms of sale. The Current amount is calculated from customer transactions. For example, if an invoice was written with terms of Net 30 and thirty days has not passed, the total amount of the invoice would be included in the 'Current' amount. The remaining fields in the current condition area are for amounts owing on the account which are past due. The 1-30, 31-60, etc. are the aging periods which detail the amounts outstanding in terms of months late. The amounts in the aging periods are automatically calculated from individual invoice balances. CUSTOMER CREDIT LIMIT. The lower right section of the entry screen (Diagram #4-12) contains information on accumulated customer sales, customer account limits and on order items. This area will need to be entered to establish initial balances for each balance forward account. These fields will be automatically updated from transaction activity. [4-19] The 'On Order' entry represents the sale price of items on order or back ordered for the customer. The 'Limit' field is the established maximum amount which can be charged to an account on a normal sale. The 'Limit' amount applies to the total of the 'Balance' and 'On Order' amounts. The customer 'Limit' can be over-ridden from the keyboard at the time of invoicing, if desired. The 'MTD', 'QTD' AND 'YTD' sales accumulations are automatically recorded as a result of charges to the account. These amounts MUST be updated at the end of the month, quarter and year in the Monthly Processing section in the Accounts Receivable system. The 'F/C' field is similar to the sales accumulations. This field accumulates year-to-date freight charges to distinguish them from sales accumulations. The 'F/C' amounts are automatically accumulated during invoicing. CUSTOMER SETUP ITEMS. The bottom two rows of items on the new customer entry screen in Diagram #4-12 must be set for each customer. The payment related items below the aging and to-date amount are used to establish consistent customer payment practices such as requiring a minimum payment of 10% of the unpaid balance to the nearest $1.00 with a minimum payment of $10.00 or the total balance, whichever is lower. The 'Min Pay %' field uses whole numbers from one (1) to 100 and decimals from .0 to .9 for the percentage of the current balance which is to be paid in the current billing period. Leaving the field blank will assume 100% of the balance is to be paid. The 'Round Amount Up To' field is used to create an even payment amount, if desired. For instance, a '1' (1) in this field would round the payment due to the next higher dollar amount and eliminate cents. Entering a '10' would round the payment to the nearest $10.00 amount, etc. A blank will assume no rounding is requested. The 'Min Pay' is the lowest amount customers are to pay in the current billing period. This field can use any whole or partial dollar amount. A blank assumes no minimum payment amount is required. [4-20] The Accounts Receivable system can manage a customer by individual invoices (Open Invoice) OR by the simpler Balance Forward method. The selection can be made on an individual customer basis with some customers using the balance forward method and others using the Open Invoice method. The 'Account Type' sets the manner in which you wish to manage the account. If you wish to maintain and carry forward only total invoice amounts and the current balance of an account, and are not concerned with the contents of individual invoices, a 'B' in the 'Account Type' will set the Balance Forward method for a customer. ------------------------------------------------------------------------------ THE BALANCE FORWARD METHOD WILL NOT MANAGE INVOICES BY TERMS OF SALE. ------------------------------------------------------------------------------ An 'O' in the 'Account Type' will establish the Open Invoice method for an individual customer. This method will track the customer account by individual invoice and will apply payments to selective invoices or automatically apply payments to the oldest invoice. Examples of the Balance Forward and Open Invoice methods are included in the following sections. The 'Taxable' entry on the new customer screen establishes the account as taxable or non-taxable for sales tax. If you are in a state which requires sales tax, you may have end user customers who are charged sales tax AND/OR re-sale customers who are exempt from sales taxes. A 'Y' in the 'Taxable' field will establish a taxable customer and automatically apply taxes on sales. An 'N' will exempt the customer from sales taxes. Also, an 'N' is used for customers in states where sales taxes do not apply. The 'Terms' field is used to set the normal terms of sale for each customer. For instance, if a customer is to be given Net 30 payment terms and Net 30 terms have been established in line #2 in the Payment Terms section, a '2' in the 'Terms' field would set up Net 30 for the customer. All invoices would be printed with Net 30 terms unless the terms are over-ridden at the time of invoicing. The 'G/L Acct#' is the Accounts Receivable account number for posting charges and payments to the General Ledger. [4-21] Each of the entries on the Add New Customers screen should be carefully reviewed before you begin developing your customer file. Information may be entered in any order and to any area of the screen you wish. Each entry can be followed by a [RETURN], a keyboard arrow or a mouse movement to move to another entry. The screen MUST be saved with the [SAVE] key to complete the customer file setup. After all entries for a customer have been completed and the [SAVE] key has been used, a new entry screen will be presented for another customer entry. The [DONE] key will return you to the Accounts Receivable menu. Entering only the general information on this screen for all customers is usually faster than completing all transaction entries on the next page. See the Edit Existing Customer Files on the next page for completion of customer transactions. Diagram #4-13 is a completed input screen for sample customer. {Diagram #4-13} [4-22] EDITING EXISTING CUSTOMER FILES - Customer accounts are accessed for transaction entry and editing from the [EDIT EXISTING CUSTOMERS] selection on the Accounts Receivable menu in Diagram #4-14. This section of the A/R system is also used to establish initial balances when setting up existing customer accounts in the system for the first time. CUSTOMER INFORMATION. The [EDIT EXISTING CUSTOMERS] selection produces the Edit Customer Accounts screen in Diagram #4-15. This screen is the same as the Add New Customer screen except for the screen keys at the bottom. {Diagram #4-14} The edit screen in Diagram #4-15 displays the first customer in Customer Number order when called from the A/R menu. Other accounts can be recalled with the scanning keys in the lower-left of the screen or with the [FIND] and [SEARCH] keys. The [FIND] key will recall an account by Customer Number. The [SEARCH] key will recall an account by Name. [4-23] {Diagram #4-15} When new account entries have been completed, the [DONE] key will return you to the A/R menu. TRANSACTIONS. Transaction activity associated with an individual customer can be presented to the screen with the arrow keys at the top of the screen in Diagram #4-15. Either of these keys will produce the customer transaction screen in Diagram #4-16. The edit screen in Diagram #4-16 displays customers in Customer Number order. Other accounts can be recalled with the scanning keys in the lower- left of the screen or with the [FIND] and [SEARCH] keys. The [FIND] key will recall an account by Customer Number. The [SEARCH] key will recall an account by Name. The customer transaction screen contains 260 lines for recording transac- tion activity. Each charge, payment, etc. will be recorded automatically in this area. This screen can also be used for manual entries when not using an integrated Accounts Receivable. [4-24] {Diagram #4-16} The 'Date' is the date of the transaction. This date field should NOT reflect the current calendar date unless the calendar date and the invoice date are the same. The 'Description' is used to record the type of transaction. The format used for entering transactions is important to maintain when using the Open Invoice method of account management. Entries can be made in almost any manner when using the Balance Forward method. Invoices are recorded with the Invoice Number in the Description field. Payments are recorded with the customer check number in the Description field, if available. If no check number is available, no check number entry will be made in the Description field. Freight charges, taxes, discounts, payments and credits are also recorded in the Description field but are indented one space. The indentation of all transactions related to an invoice is for easy examination of invoice activity. The 'T' field is for recording the terms of sale for invoices, freight and taxes. Payments and discounts do not use the terms assignment. [4-25] The 'Amount' entry completes the transaction. Amount entries MUST use negative numbers for payments, credit and discounts since they reduce the A/R balance. When automatic entries are made by the system, all activities relating to a specific invoice will be inserted and indented under the invoice. All new entries and changes to existing in a customer file will be saved automatically when leaving the screen. Therefore, if an entry is not desired, you MUST use the [UNDO] key to clear unwanted entries before leaving the screen. When editing activity has been completed, the [DONE] key will return you to the A/R menu. DELETING ACCOUNTS - Customer accounts may be deleted from either of the Edit Customer Accounts screens in Diagram #4-15 and Diagram #4-16, using the [DELETE] key. A warning message will be presented before the actual delete takes place. The delete process may be stopped with the [CANCEL] key at this point, if needed. ------------------------------------------------------------------------------ IT IS IMPORTANT TO USE THE DELETE PROCESS WITH CAUTION SINCE A DELETED CUSTOMER ACCOUNT CANNOT BE RECOVERED. ------------------------------------------------------------------------------ If a customer account has been deleted during the year, any accumulations that may be used as performance measures on reports (covered in a later section) may not be consistent. This situation may occur since accumulated charges, payments, etc. associated with the deleted account will not be contained in future Accounts Receivable summary reports. The [DONE] key will return you to the A/R menu when deleting activity has been completed. [4-26] ACCOUNTS RECEIVABLE MONTHLY PROCESSING This section of the Accounts Receivable system contains a step-by-step discussion of the monthly process for maintaining the A/R accounts. The steps of the process include: a) Up-dating account aging b) Applying monthly finance charges (if required) c) Calculating amounts due on accounts d) Printing STATEMENTS (billings) e) Collapsing accounts f) Clearing month-to-date, quarter-to-date and year-to-date fields These monthly maintenance steps are accomplished very quickly with easy to follow screen processes. These screen process are detailed on the follow- ing pages. ADVANCING ACCOUNT AGING - UP-dating account aging is the first step in the monthly process of managing Accounts Receivable, since the current condition of accounts must be established before finance charges (late charges) can be applies. ------------------------------------------------------------------------------ ONLY ACCOUNTS USING THE BALANCE FORWARD METHOD WILL BE AFFECTED BY THE AGE ADVANCING PROCESS. OPEN INVOICE ACCOUNTS WILL AUTOMATICALLY CALCULATE AND MAINTAIN AGING FROM INVOICE TERMS. ------------------------------------------------------------------------------ Advancing account aging moves the amounts due in the current period into the next aging periods. For example, an amount owing on an account which was in the 1-30 days late aging period for the previous monthly cycle will be moved to the 31-60 days late aging period for the current month. Each time aging is advanced, amounts for all accounts using Balance Forward will be moved one aging period. Therefore, it is necessary to understand the process and use it with caution. [4-27] {Diagram #4-17} Account aging is accessed from the [MONTHLY PROCESSING] selection on the A/R menu in Diagram #4-17. The [MONTHLY PROCESSING] selection will present the A/R Monthly Processing menu in Diagram #4-18. Account aging is produced from the [ADVANCE AGING AMOUNTS] key in Diagram #4-18. {Diagram #4-18} [4-28] The Advance A/R Aged Amounts Due screen in Diagram #4-19 will be presented before age advancement actually occurs. The [OK] key will complete the aging process for all Balance Forward accounts. The [CANCEL] key may be used at this time if you do not wish to continue. {Diagram #4-19} The A/R Monthly Processing menu will be returned when the age advancing process has been completed. [4-29] APPLYING FINANCE CHARGES - Accounts Receivable finance charges are used to off-set your cost of carry- ing customer accounts and to encourage prompt customer payments. These charges are optional and may be ignored if you choose not to use them. {Diagram #4-20} Finance Charge activity is accessed from the [APPLY FINANCE CHARGES] selection on the A/R Monthly Processing menu in Diagram #4-20. The [APPLYING FINANCE CHARGES] key will present the Apply Finance Charge screen in Diagram #4-21. [4-30] {Diagram #4-21} ------------------------------------------------------------------------------ FINANCE CHARGES WILL BE APPLIED TO BALANCE FORWARD ACCOUNTS, ONLY. FINANCE CHARGES FOR OPEN INVOICE ACCOUNTS WILL BE CALCULATED FROM INVOICE TERMS. ONLY ONE FINANCE CHARGE METHOD CAN BE SELECTED. ALL BALANCE FORWARD ACCOUNTS WILL USE THE SELECTED METHOD. ------------------------------------------------------------------------------ FIXED AMOUNT. Finance charges for balance forward accounts will be calculated using one of three methods. The first finance charge method is a FIXED AMOUNT per month on past due accounts. The fixed amount to be charged is entered in the first selection in Diagram #4-22. In this example, $5.00 will be charged to all accounts with past due amounts. The $5.00 charge will be applied directly to customer accounts when you activate the [OK] key. [4-31] {Diagram #4-22} The [OK] key will begin finance charge processing. {Diagram #4-23} [4-32] PERCENT OF CURRENT BALANCE. The Percent of Current Balance method applies a fixed percentage of the current balance defined by the entry in Diagram #4-23. The percentage value can be any whole number and/or a fractional percentage. The percentage has been set to 1.50% in the example in Diagram #4-23. The [OK] key will begin finance charge processing. PERCENT OF AVERAGE DAILY BALANCE. This finance charge method uses an average balance calculated from actual daily balances for each day between billing billing cycles. The Percent entry can be any whole number and/or a fractional percentage such as the 1.25% in the example in Diagram #4-24. The dates to be included for the average calculation are defined by the 'From' and 'To' fields in Diagram #4-24. The 'From' entry is automatically recorded from the previ- ous finance charge calculation date. The 'To' date is the current date entered in the system at startup (today's date). Either date can be changed from the keyboard, if necessary. The [OK] key will begin finance charge processing. {Diagram #4-24} [4-33] CALCULATING AMOUNTS DUE - This step of the monthly process is used to calculate the amounts due on BALANCE FORWARD accounts prior to printing monthly statements. The percentage to pay on the remaining balance, the minimum payment and the rounding of the payment amount are stored for future calculations. These features will remain in force until you revise them with this section of monthly processing. {Diagram #4-25} The [CALCULATE AMOUNTS DUE] selection on the A/R Monthly Processing menu in Diagram #4-25 produces the Calculate Amounts Due screen in Diagram #4-26. The [OK] key will begin processing for all BALANCE FORWARD accounts. [4-34] {Diagram #4-26} [4-35] PREPARING AND PRINTING STATEMENTS - The Statements section of Monthly Processing provides an easy to use screening process for preparing and printing monthly customer statements. The monthly Statement (billing) process is accessed from the [PRINT STATEMENTS] selection on the A/R Monthly Processing menu in Diagram #4-27. The [PRINT STATEMENT] selection will produce the Print Statements selection screen in Diagram #4-28. {Diagram #4-27} [4-36] The screen in Diagram #4-28 can be used to prepare statements for a single customer, a group of customers or for all customers. A single customer statement is printed by using the desired Customer Number in both fields. Beginning and ending Customer Numbers are entered in the 'From' and 'To' fields to limit the statements to a selected group of customers. {Diagram #4-28} Accounts with zero ($0.00) balances can be printed by entering 'Y' in the 'Print zero balance accounts' field. This feature is useful for sending special messages to all customers and for maintaining contact with occasional customers. Year-to-date finance charges can be printed on statements using the 'Print Y-T-D finance charges' field. Accumulated PAID finance charges will be calculated and printed for customer convenience. The 'Print company name and address' entry is used for including or omitting YOUR company name and address on statements. A 'Y' in this field would print YOUR company name and address in the FROM section of the state- ment form. If you are using statement forms with your company name and address PRE-PRINTED, enter 'N' here to eliminate over-printing. [4-37] ------------------------------------------------------------------------------ BE SURE THE PRINTER POWER IS TURNED ON AND STATEMENT FORMS ARE INSERTED CORRECTLY BEFORE CONTINUING BEYOND THIS POINT. ------------------------------------------------------------------------------ A TEST Statement should be printed to check paper alignment before you begin printing the entire customer file. Any customer account can be used as a test for forms positioning. A few test runs may be necessary to assure correct forms alignment. The [PRINT] key in Diagram #4-28 will produce the READY screen in Diagram #4-29. The [PRINT] key in Diagram #4-29 will begin the printing process. Re-run the test until you are satisfied with printing results. {Diagram #4-29} When the TEST statement prints correctly, you are ready to prepare for a complete set of statements. An example Statement is included on the following page. [4-38] ADVANCED HOME ELECTRONICS P.O. BOX 1245 MC MINNVILLE, OREGON 97128 DATE -------------- 06/16/86 -------------- ACCOUNT NUMBER -------------- 1005 JAMES R. WILSON 12343 S.W. COMSTOCK PORTLAND, OREGON 97274 AMOUNT ENCLOSED $ ------------ PLEASE RETURN THIS PORTION WITH PAYMENT ------------------------------------------------------------------------------ DATE CHARGES AND CREDITS AMOUNT ------------------------------------------------------------------------------ 04/01/86 INVOICE #1111 100.00 05/11/86 PAYMENT CK #1111 -100.00 04/15/86 INVOICE #2222 200.00 05/11/86 PAYMENT CK #1111 -150.00 05/10/86 INVOICE #3333 300.00 06/01/86 INVOICE #4444 400.00 06/15/86 INVOICE #5555 500.00 BALANCE 1250.00 Y-T-D FINANCE CHARGES 0.00 YOUR ACCOUNT IS PAST DUE ! ------------------------------------------------------------------------------ CURRENT PAST DUE ------------------------------------------------------------------------------ [1-30 DAYS] [31-60 DAYS] [61-90 DAYS] [OVER 90 DAYS] 900.00 300.00 50.00 0.00 0.00 ------------------------------------------------------------------------------ 1 - ADVANCED HOME ELECTRONICS [4-39] COLLAPSING CUSTOMER ACCOUNT TRANSACTIONS - The account collapsing process is used to purge old transactions from customer accounts. Collapsing is necessary to conserve storage space and to keep the customer files at a manageable size. BALANCE FORWARD accounts will collapse all past activity into one ending balance amount which is carried forward to the next month of activity. Collapsing OPEN INVOICE accounts will purge all transactions associated with invoices containing zero ($0.00) balances. Invoices with positive OR negative balances will not be collapsed. ------------------------------------------------------------------------------ STATEMENTS MUST BE PRINTED BEFORE COLLAPSING ACCOUNTS SINCE MUCH OF THE ACCOUNT DETAIL WILL BE LOST. A COPY OF MONTHLY STATEMENTS FOR EACH CUSTOMER SHOULD BE STORED IN A PAPER FILE FOR FUTURE REFERENCE. ------------------------------------------------------------------------------ {Diagram #4-30} [4-40] The [COLLAPSE TRANSACTIONS] selection on the A/R Monthly Processing menu in Diagram #4-30 will present the warning screen in Diagram #4-31. The [OK] key will begin the account collapsing process. The [CANCEL] key will return you to the A/R Monthly Processing menu. {Diagram #4-31} CLEARING ACCOUNT 'TO-DATE' ACCUMULATIONS - The 'To-Date' amounts are customer Sales and Freight Charges which are accumulated into monthly, quarterly and yearly totals (Freight Charges are yearly accumulations, only). These amounts appear on each customer account main screen. If 'To-Date' fields are not cleared at the appropriate times, the month, quarter or year involved will continue to accumulate. No customer file damage will be done except for generating inaccurate 'To-Date' accumulations on the customer screens. [4-41] The 'To-Date' amounts need to be cleared at the end of each accumulation period. For instance, 'Month-To-Date' amounts need to be cleared at the end of each month to begin new accumulations for the next month. Similarly, 'Quarter-To-Date' amounts must be cleared at the end of each quarter to begin new accumulations for the next quarter. 'Year-To-Date' amounts are cleared at the end of each year. {Diagram #4-32} The clearing process is accessed from the [CLEAR TO-DATE FIELDS] selection on the A/R Monthly Processing menu in Diagram #4-32. The [CLEAR TO-DATE FIELDS] key will present the short menu in Diagram #4-33 where each of the 'To-Date' fields may be selected. [4-42] {Diagram #4-33} ------------------------------------------------------------------------------ 'TO-DATE' AMOUNTS FOR ALL ACCOUNTS WILL BE CLEARED WITH THIS PROCESS. CLEARING 'TO-DATE' FIELDS FOR INDIVIDUAL ACCOUNTS MUST BE DONE FROM CUSTOMER ACCOUNT SCREENS, IF REQUIRED. ------------------------------------------------------------------------------ [4-43] {Diagram #4-34} Each of the 'To-Date' keys in Diagram #4-33 will present a warning screen (Diagram #4-34) before clearing can begin. The [OK] key will begin the clearing process. The [CANCEL] key will return you to the A/R Monthly Processing menu before clearing can begin. [4-44] PRINTING ACCOUNTS RECEIVABLE REPORTS The Reports section of the Accounts Receivable system is used for produc- ing printed reports on account information. The examples in this section will cover four (4) 'PRE-DESIGNED' reports which can be generated quickly from selections on the Reports menu. A report is also available for use during initial A/R setup to test the interfaces to the General Ledger. {Diagram #4-35} The A/R Reports menu in Diagram #4-36 is called from the [REPORTS] selection on the Accounts Receivable menu (Diagram #4-35). The set of reports shown on the A/R Reports menu have been developed to handle a number of on-going reporting and analysis needs. They should prove useful in addressing a variety of Accounts Receivable issues and questions. [4-45] {Diagram #4-36} To print a report, the printer must be turned on with paper loaded (8 1/2" X 11" paper) and positioned with the print head about one line below the top edge of the paper. The paper will maintain this position for all remaining pages and reports. ------------------------------------------------------------------------------ SAMPLES OF EACH OF THE REPORTS ARE INCLUDED AT THE END OF THIS SECTION. ------------------------------------------------------------------------------ ACCOUNT AGING REPORTS - An Aging Report typically provides information on customer accounts with past due balances. Time periods for past due amounts are divided into days from 1-30, 31-60, 61-90 and more than 90, with balances reported for each past due period. [4-46] Accounts Receivable Aging reports are produced from the [AGING REPORT] selection on the A/R Reports menu in Diagram #4-36. The [AGING REPORT] key produces the A/R Aging Report selection screen in Diagram #4-37 which contains two report types. The [PAST DUE CUSTOMERS] report will INCLUDE only customer accounts with past due amounts and will EXCLUDE customer accounts with zero ($0.00) balances and accounts with only current balances. {Diagram #4-37} The [ALL CUSTOMERS] report will provide the same information as the Past Due Report but will include all customers. An example of an Aging report is included at the end of this section. SALES REPORTS - Sales reports provide information on customer sales contributions to your business. Customers are ranked in order of total sales by month, quarter or year-to-date. [4-47] Sales reports are accessed from the [SALES REPORT] selection on the A/R Reports menu in Diagram #4-36. The [SALES REPORT] selection produces the ranking selection screen in Diagram #4-38 which is used to select the number of customers you wish to list on the report. {Diagram #4-38} You may leave the screen blank and go directly to printing if you wish to include all customers on your report. Diagram #4-39 illustrates the selection of a partial list of customers. In this example, only the top five (5) customers in order of sales are being requested for a Year-to-date report. Similar entries would be used for a different number of customers and for Month or Quarter reports. [4-48] {Diagram #4-39} An example of a Sales report is included at the end of this section. ACCOUNT SUMMARY REPORT - The Account Summary report is designed to provide a profile on the level of activity each account has contained on a year-to-date basis. The 'Total Sales', 'Total Taxes', etc. are accumulations for the year with the 'Balance' being the net of all the other elements. [4-49] The accumulations of each column are shown at the end of the last page of the report to provide summary information on the component parts of Receivables activities (sales, taxes, interest and credits applied to balances.) The totals are expressed as averages to help establish and track trends. The Account Summary report is accessed from the [SUMMARY REPORT] selection on the A/R Reports screen (Diagram #4-36). An example of a Summary report is included at the end of this section. CUSTOMER LIST - The Customer List is provided as an 'off-line' reference document to be used as a source for customer information when it is not convenient for you to use the computer for lookup. The Customer List is accessed from the [CUSTOMER LIST] selection on the A/R Reports menu (Diagram #4-36). An example of a Customer List is include at the end of this section. DETAIL REPORT - The Detail Report provides a detailed listing of all customer information and transactions. An example of a Detail Report is included at the end of this section. MAILING LABELS - A handy mailing label process is included in this section. You will find it easy to use with your existing customer file. [4-50] ---------------------------------------------------------------------------- 16-JUN-86 ADVANCED HOME ELECTRONICS Page 1 A/R AGING REPORT ALL CUSTOMERS ---------------------------------------------------------------------------- CUST # BALANCE CURRENT (1-30) (31-60) (61-90) (91+) 1005 JAMES R. WILSON 1250.00 900.00 300.00 50.00 0.00 0.00 1001 NANCY MORRISON 0.00 0.00 0.00 0.00 0.00 0.00 1003 NORTHSIDE REALTY 4315.88 0.00 0.00 0.00 0.00 0.00 1002 RICHARD L. ROSS -500.00 -500.00 0.00 0.00 0.00 0.00 TOTAL 5065.88 400.00 300.00 50.00 0.00 0.00 [4-51] ---------------------------------------------------------------------------- 16-JUN-86 ADVANCED HOME ELECTRONICS Page 1 CUSTOMER SALES REPORT ---------------------------------------------------------------------------- CUST RANK NO. CUSTOMER NAME MTD SALES QTD SALES YTD SALES ---- ---- ---------------- --------- --------- --------- 1 1005 JAMES R. WILSON 900.00 1500.00 1500.00 2 1001 NANCY MORRISON 0.00 0.00 487.25 3 1003 NORTHSIDE REALTY 4 1002 RICHARD L. ROSS TOTAL 900.00 1500.00 1987.25 [4-52] ---------------------------------------------------------------------------- 16-JUN-86 ADVANCED HOME ELECTRONICS Page 1 A/R SUMMARY REPORT ---------------------------------------------------------------------------- CUST CREDIT NO. CUSTOMER NAME BALANCE ON ORDER TOTAL LIMIT ---- --------------------- ------- -------- ------- -------- 1005 JAMES R. WILSON 1250.00 0.00 1250.00 1500.00 1001 NANCY MORRISON 0.00 0.00 0.00 1000.00 1003 NORTHSIDE REALTY 4315.88 4315.88 1002 RICHARD L. ROSS -500.00 -500.00 TOTAL 5065.88 0.00 5065.88 [4-53] ---------------------------------------------------------------------------- 16-JUN-86 ADVANCED HOME ELECTRONICS Page 1 CUSTOMER LIST ---------------------------------------------------------------------------- CUST NO. CUSTOMER NAME CONTACT TELEPHONE NO. ---- ------------------------ ------- --------------- 1001 NANCY MORRISON JIM (503) 472-1234 1002 RICHARD L. ROSS DICK (503) 472-2233 1003 NORTHSIDE REALTY RON (503) 472-2212 1005 JAMES R. WILSON JIM (503) 223-5565 [4-54] ---------------------------------------------------------------------------- 16-JUN-86 ADVANCED HOME ELECTRONICS Page 1 A/R DETAIL REPORT ---------------------------------------------------------------------------- CUST # 1003 NAME: NORTHSIDE REALTY CONTACT: RON ADDR: 2345 NORTH HIGHWAY 99 W PHONE: (503) 472-2212 MC MINNVILLE, OREGON TERMS: 97128 BALANCE: 4315.88 ON ORDER: MIN PAYMENT %: 10.0 CURRENT: 0.00 LIMIT: ROUND UP TO: 1 (1-30): 0.00 SALES MTD: MIN PAYMENT: 25.00 (31-60): 0.00 QTD: ACCOUNT TYPE: B (61-90): 0.00 YTD: TAXABLE: N ( +90): 0.00 F/C YTD: G/L ACCOUNT #: 1110 DATE DESCRIPTION T AMOUNT -------- ---------------------- - ----------- 02/01/86 INVOICE #10003 2234.13 02/01/86 INVOICE #10004 2206.75 01/15/86 PAYMENT #2323 -125.00 [4-55] SYSTEM INTERFACE TEST REPORT - This report is used for testing the interface accounts when the Accounts Receivable system is integrated with Invoicing and the General Ledger. The report will test each customer account for a valid G/L Accounts Receivable account number and will test for valid Sales Discounts, Sales Returns and Finance Charges account numbers. These accounts MUST be established in the Chart of Accounts for transactions to be generated and posted from Invoices. The A/R Interface Report will list each account with an interface error and indicate the fix required to correct it. Additional checks and listings will be made for the Discount and Return accounts. The report is accessed from the [INTERFACE TEST] selection on the A/R Reports menu in Diagram #4-36. The [INTERFACE TEST] selection will begin the testing procedure after activating the [PRINT] key. Any problems identified by the report should be corrected immediately. Another report will verify your corrections. An example Interface Report is included on the following page. [4-56] ---------------------------------------------------------------------------- 16-JUN-86 ADVANCED HOME ELECTRONICS Page 1 A/R INTERFACE REPORT ---------------------------------------------------------------------------- CUST # 1001 NANCY MORRISON [1110] INVALID ACCOUNT CUST # 1002 RICHARD L. ROSS [1110] INVALID ACCOUNT CUST # 1003 NORTHSIDE REALTY [1110] INVALID ACCOUNT CUST # 1005 JAMES R. WILSON [1110] INVALID ACCOUNT 4 ERRORS [4-57] ACCOUNTS PAYABLE SYSTEM MENU This section provides a brief overview of the major functions available within the Accounts Payable menu selections. ------------------------------------------------------------------------------ MOST ACCOUNTING ENTRIES WILL BE PERFORMED AUTOMATICALLY ONCE YOU HAVE SET UP INDIVIDUAL VENDOR ACCOUNTS AND PAYMENT TERMS. THE ACCOUNTS PAYABLE SYSTEM CAN BE USED INDEPENDENTLY OF THE OTHER SYSTEMS, IF DESIRED. ------------------------------------------------------------------------------ The Accounts Payable menu (Diagram #5-1) is accessed from the [ACCOUNTS PAYABLE] selection on the Main Menu. A brief overview of each of the selections in the Accounts Payable Menu is provided below. {Diagram #5-1} [5-1] ADD NEW VENDORS - This selection is used for entering new vendor accounts into the Accounts Payable system. Only general vendor information is required to establish the account when entered in this section. EDIT EXISTING VENDORS - The edit selection is used to enter beginning account transaction information when setting up the Accounts Payable system for the first time and to change general vendor information which was entered through the Add New Vendors area. REPORTS - The reports section provides the capability for producing several reports relating to accounts payable activity. These ready-to-use reports include: a) Aging reports b) Purchase reports c) Account summary reports d) Vendor lists e) Vendor detail reports f) mailing labels COLLAPSE TRANSACTIONS - This feature is provided for reducing the size of vendor transaction files by deleting old transactions from vendor accounts. CLEAR TO-DATE AMOUNTS - Payments accumulated against each vendor account are tracked in monthly, quarterly and yearly amounts. This section clears each of these accumulations, as required, to maintain accurate totals for each accumulation period. [5-2] PAYMENT TERMS - Payment terms for invoice related purchases are established and managed in this section. Terms can be managed for payments to vendors in the same manner as payments from customers is accomplished in Accounts Receivable. SYSTEM MENU - This selection is used to RETURN to the B.E.S.T. Business Management main menu after completing Accounts Payable activities. Each of the selections on the Accounts Payable menu are covered in detail in the following sections using examples and illustrations whenever possible. [5-3] ACCOUNTS PAYABLE PAYMENT TERMS This section is used to setup payment terms for invoiced purchases from vendors. Most purchases which have been made on invoices can be managed for payment in the same manner as invoices to customers as describe in the Accounts Receivable section. Even though you have less control over terms you must meet on purchases from vendors, it is important to maintain visibility over payment requirement of all open accounts. For instance, proper care of vendor payment schedules and payment conditions will assure the best relationships possible with your vendors, suppliers, etc. Also, monitoring of payment terms against individual invoices will assure your ability to take advantage of all available discounts. The [PAYMENT TERMS] selection on the Accounts Payable main menu in Diagram #5-2 produces the A/P Payment Terms screen in Diagram #5-3. {Diagram #5-2} [5-4] The Terms screen is used to develop customized payment terms to match vendor assigned payment requirements. Each OPEN INVOICE vendor is assigned a payment method from this screen. A new method can be created and stored on this screen whenever a new requirement occurs. Also, any payment terms available on this screen can be assigned to a vendor invoice when it is received. Each of the elements within the payment terms is discussed below. {Diagram #5-3} DISCOUNT PERCENT. The 'Disc %' field in Diagram #5-3 defines the discount (if any) which are available to you if FULL payment is made within a shorter period of time than required by the regular invoice payment date. The discount is stated in percent with fractions of a percent such as .250 used to define partial percentages. This discount is used by a vendor to encourage early payments. DISCOUNT DAYS. The 'Disc Days' field defines the payment period in days required to take advantage of the discount percent. Payments made beyond the discount days will not discount the invoiced amount. [5-5] NET DAYS. 'Net Days' is the number of days assigned to an invoice for normal payment. For example, typical payment terms for an invoice may be 'Net 30', which would mean the entire amount of the invoice is due in 30 days. In this example, a payment made after 30 days would be late. LATE PERCENT. The 'Late %' entry is a percentage of the amount due which is charged to your account for a late payment. A late charge is not a finance charge but an added cost for late payment. Finance charges would be an additional charge for all accounts with positive monthly balances. The late charge is stated in percent with fractions stated as decimals. DESCRIPTION. The 'Description' field is used for you to describe the payment terms in your own words. This field does not directly affect the terms condition. The screen in Diagram #5-4 illustrates a variety of possible payment terms. Use these examples to create your own payment terms. {Diagram #5-4} [5-6] The terms created with the Payment Terms screen in Diagram #5-4 are automatically interpreted by the system when payments are made against an account. All conditions of the terms applied to invoices are checked when a payment is made against that invoice. Appropriate actions are taken and recorded within the vendor file as required by the terms. The A/P Payment Terms screen in Diagram #5-4 MUST be saved with the [SAVE] key to place the payment terms into service. [5-7] ESTABLISHING AND MANAGING VENDOR ACCOUNTS This section provides a detailed description of the processes used to enter information into the Accounts Payable vendor files and to change or delete that information. Data such as vendor addresses, key contacts, credit limits available, etc., as well as on-going charges and payments to accounts will be described as required. Vendor account creation and editing is performed from the [ADD NEW VENDORS] and [EDIT EXISTING VENDORS] selections on the Accounts Payable menu in Diagram #5-5. This section will discuss these two options on the A/P menu. {Diagram #5-5} ADDING NEW VENDORS - New vendors are added to the vendor files from the [ADD NEW VENDORS] selection on the A/P menu. The [ADD NEW VENDORS] key will produce the vendor screen in Diagram #5-6. The Add New Vendors screen is the information entry screen for creating new vendor accounts. Each of the items in this screen will be discussed in detail on the following pages. [5-8] {Diagram #5-6} GENERAL VENDOR INFORMATION. General information relating to the vendor is entered in the upper section of the screen. The 'Vendor #' can be any form of letters and numbers you may wish to use to describe a vendor. For instance, accounts can be assigned numbers from one (1) to 2000, etc., or they may be made up of the leading letters of vendor name. The Vendor Number could also be any combination of numbers and letters. ------------------------------------------------------------------------------ CARE SHOULD BE TAKEN WHEN DETERMINING YOUR METHOD OF NUMBERING VENDORS, SINCE VENDOR ACCOUNTS WILL BE STORED IN VENDOR NUMBER ORDER. VENDOR FILES ARE SCANNED ON THE VENDOR EDIT SCREEN IN VENDOR NUMBER ORDER. ------------------------------------------------------------------------------ The 'Name' field is the vendor name as you wish to use it on purchase orders, checks and mailing labels. The vendor name will become a regular part of vendor mailing information. [5-9] The 'Addr' field is the mailing address of the individual or company referred to in the 'Name' field. This field will be used as the mailing address on purchase orders, checks and mailing labels. The 'Contact' field is the name of your primary contact within the vendor company. The person's name would be used in the 'Name' field if the vendor is an individual. The 'Phone #' can be any 9-digit vendor phone number. It is a good idea to use the same numbering process for all telephone numbers to simplify auditing of vendor information. Phone numbers and other such data will be easier to read and audit when printed in the same format such as (503) 472-9512. CURRENT ACCOUNT CONDITION. The left-center section of the new vendor entry screen contains information relating to the current condition of the account. The 'Balance' is the total of all charges outstanding on the account. The 'Current' field is the amount owing on the account which is not yet due according to the terms of sale. The Balance and Current amounts are calculated from vendor transactions. For example, if an Open Invoice charge was recorded with terms of Net 30, and thirty days has not passed, the total amount of the invoice would be included in the 'Balance' and in the 'Current' amount. The remaining fields in the current condition area are for past due amounts. The 1-30, 31-60, etc. are the aging periods which detail the amounts outstanding in days late. The amounts in the aging periods are automatically calculated from individual invoice balances. ON ORDER/CREDIT LIMIT/PURCHASE HISTORY. The right-center section of the entry screen (Diagram #5-6) contains information for amounts on order, credit limit and accumulated purchases. All items are maintained automatically from transaction activity except your Credit Limit which is entered from the keyboard. [5-10] The 'On Order' field is the amount of purchased items currently on order and not yet received. The 'Limit' field is the established maximum amount which can be charged to the vendor account. The 'Limit' amount applies to the total of the 'Balance' AND 'On Order' amounts. The vendor 'Limit' can be over-ridden while preparing a purchase order, if desired. The 'MTD', 'QTD' and 'YTD' purchase accumulations are automatically recorded as a result of charges to the account. These amounts must be updated (cleared) at the end of the month, quarter and year in the Clear To-Date section the Accounts Payable system to maintain accurate accumulations. The 'F/C' field is similar to the purchase accumulations. This field accumulates year-to-date freight charges to distinguish them from purchase accumulations. The 'F/C' amounts are automatically accumulated from vendor invoices as they are recorded. TERMS AND G/L ACCOUNT. Accounts will be managed by invoice terms. A net zero (0) or net 30 entry on the payment terms setup screen can be used for managing simple monthly accounts. The 'Terms' entry at the bottom of the screen (Diagram #5-6) establishes the normal payment terms for the vendor. Other term selections can be used, if required, on specific vendor invoices as they are received. The 'G/L ACCT #' is the Accounts Payable account number for posting charges and payments to the General Ledger. You may find it faster to enter only the general information screen as shown in Diagram #5-7 to setup your initial vendor files. All transaction entries can then be made in one setting. Each of the entries on the Add New Vendors screen should be carefully reviewed before you begin developing your vendor file. The screen MUST be saved with the [SAVE] Key to complete the vendor file setup. After all entries for a vendor have been completed and the [SAVE] key has been used, a new entry screen will be presented for another vendor entry. The [DONE] key will return you to the Accounts Payable menu. [5-11] Diagram #5-7 illustrates a completed vendor input screen. {Diagram #5-7} EDITING EXISTING VENDOR FILES - Vendor accounts are accessed for transaction entry and editing from the [EDIT EXISTING VENDORS] selection on the Accounts Payable menu in Diagram #5-8. This section of the A/P system can also be used to enter initial balances when setting up vendor accounts in the system for the first time. [5-12] {Diagram #5-8} VENDOR INFORMATION. The [EDIT EXISTING VENDORS] selection produces the Edit Vendor Accounts screen in Diagram #5-9. This screen is the same as the Add New Vendor screen except for the screen keys at the bottom. {Diagram #5-9} [5-13] The edit screen in Diagram #5-9 displays the first vendor in Vendor Number order when called from the A/P menu. Other accounts can be recalled with the scanning keys in the lower-left of the screen or with the [FIND] and [SEARCH] Keys. The [FIND] Key will recall an account by Vendor Number. The [SEARCH] Key will recall an account by Name. TRANSACTIONS. Transaction activity associated to an individual vendor can be presented to the screen with the left or right arrows at the top of the screen in Diagram #5-9. These keys will produce the vendor transaction screen in Diagram #5-10. {Diagram #5-10} The screen in Diagram #5-10 has been filled with sample information to illustrate the transaction screen process. The transaction edit screen displays vendors in Vendor Number order. Other accounts can be recalled with the scanning keys in the lower-left of the screen or with the [FIND] and [SEARCH] Keys. The [FIND] Key will recall an account by Vendor Number. The [SEARCH] Key will recall an account by Name. [5-14] The vendor transaction screen contains 260 lines for recording transaction activity. Each charge, payment, etc. will be recorded automatically in this area from Business Function activities. This screen can also be used for manual entries when not using an integrated Accounts Payable. The 'Date' is the date of the transaction. This date field should NOT reflect the current calendar date unless the calendar date and the invoice date are the same. The 'Description' is used to record the type of transaction. The Open Invoice format is used entering transactions. Vendor invoices are recorded with the invoice number in the Description field. Payments on vendor accounts are recorded with your check number in the Description field, if available. Freight charges, taxes, discounts and credits are also recorded in the Description field, indented one space. The indentation of all transactions related to an invoice is for easy examination of invoice activity. The 'T' field is for recording the appropriate number for payment terms. Payments, credits, discounts and discounts do not use the terms assignment. The 'Amount' entry completes the transaction. Amount entries MUST use negative numbers for payments, credit and discounts since they reduce the A/P balance. When automatic entries are made by the system, all activities relating to a specific invoice will be inserted and indented under the vendor invoice. [5-15] {Diagram #5-11} Diagram #5-10 illustrates a completed transaction screen. Diagram #5-11 illustrates a completed vendor information screen after the transactions have been entered. All entries and changes to a vendor file will be saved when leaving the screen in any manner. Therefore, if an entry is not desired, you MUST use the [UNDO] Key to clear unwanted entries before leaving the screen. When new account entries have been completed, the [DONE] Key will return you to the A/P menu. DELETING ACCOUNTS - Vendor accounts can be deleted from either of the Edit Vendor Accounts screens in Diagram #5-10 and Diagram #5-11 using the [DELETE] Key. A warning message will be presented before the actual delete takes place. The delete process can be stopped with the [CANCEL] Key at this point, if needed. [5-16] ------------------------------------------------------------------------------ IT IS IMPORTANT TO USE THE DELETE PROCESS WITH CAUTION SINCE A DELETED VENDOR ACCOUNT CANNOT BE RECOVERED. ------------------------------------------------------------------------------ If a vendor account has been deleted during the year, any summary reports which may be used as performance measures (covered in a later section) may not be consistent. This situation may occur since accumulated charges, payments, etc. associated with the deleted account will not be contained in future Accounts Payable summary reports. The [DONE] Key will return you to the A/P menu when deleting activity has been completed. [5-17] PRINTING ACCOUNTS PAYABLE REPORTS The Reports section of Accounts Payable is used in the same manner as the Reports section of Accounts Receivable. Therefore, this reports section will require only a short overview of reporting features. Refer to the Accounts Receivable section for details, if necessary. {Diagram #5-12} The A/P Reports menu in Diagram #5-13 is called from the [REPORTS] selection on the Accounts Payable menu (Diagram #5-12). The set of reports shown on the A/P Reports menu have been developed to handle a number of on-going reporting and analysis needs. They should prove useful in addressing a variety of Accounts Payable issues and questions. [5-18] {Diagram #5-13} To print a report, the printer must be turned on with paper loaded and positioned with the print head about one line below the top edge of the paper. The paper will maintain this position for all remaining pages and reports. AGING REPORTS - An Aging Report provides information on vendor accounts with past due balances. PURCHASE REPORTS - Purchase reports provide information on purchases by vendor. Vendors are ranked in order of total purchases by month, quarter or year-to-date. [5-19] ACCOUNT SUMMARY REPORT - The Account Summary report is designed to provide a profile on your purchase activities by vendor with year-to-date summaries. The 'Total Purchases', 'Total Taxes', etc. are accumulations for the year. The accumulations of each column are shown at the end of the last page of the report to provide summary information on the component parts of account activity (purchases, taxes, interest and credit applied to balances). VENDOR LIST - The Vendor List is provided as an 'off-line' reference document to be used as a source for vendor information when it is not convenient for you to use the computer for lookup. DETAIL REPORT - Detail Reports provide a complete 'dump' of all vendor information and transaction activity available in a vendor file. This report provides an excellent audit capability for individual accounts. SYSTEM INTERFACE TEST REPORT - This report is used for testing the interface accounts when the Accounts Payable system is integrated with the General Ledger. The report will test each vendor account for a valid G/L Accounts Payable account number. The A/P Interface Report will list each account with an interface problem and indicate the fix required for corrective action. Any problems identified by the report should be corrected immediately. Another report will verify your corrections. [5-20] MAILING LABELS - A mailing label process is included with the Accounts Payable section for individual account label making or for printing labels for your entire vendor file. This process can be used as a general label maker for single or small quantities of specialized labels by creating special accounts containing the mailing information. [5-21] COLLAPSING VENDOR TRANSACTIONS The account collapsing process is used to purge old transactions from vendor accounts. Collapsing is necessary to conserve storage space and to keep the vendor files at a manageable size. Collapsing accounts will purge all transactions associated with invoices containing zero ($0.00) balances. Invoices with positive OR negative balances will not be collapsed. The [COLLAPSE TRANSACTIONS] selection on the Accounts Payable menu in Diagram #5-14 will present the warning screen in Diagram #5-15. The [OK] key will begin the account collapsing process and return you to the Accounts Payable main menu when completed. The [CANCEL] key will return you to the Accounts Payable menu. {Diagram #5-14} [5-22] {Diagram #5-15} [5-23] CLEARING ACCOUNT 'TO-DATE' ACCUMULATIONS The 'To-Date' amounts are vendor charges for purchases and freight charges which are accumulated into monthly, quarterly and yearly totals (freight charges are yearly accumulations, only). These amounts appear on each vendor account main screen. The 'To-Date' amounts need to be cleared at the end of each accumulation period. For instance, 'Month-To-Date' amounts need to be cleared at the end of each month to begin new accumulations for the next month. Similarly, 'Quarter-To-Date' amounts must be cleared at the end of each quarter to begin new accumulations for the next quarter. 'Year-To-Date' amounts are cleared at the end of each year. {Diagram #5-16} The clearing process is accessed from the [CLEAR TO-DATE AMOUNTS] selection on the Accounts Payable menu in Diagram #5-16. The [CLEAR TO-DATE AMOUNTS] key will present the short menu in Diagram #5-17 where each of the 'To-Date' fields may be selected. [5-24] {Diagram #5-17} ------------------------------------------------------------------------------ 'TO-DATE' AMOUNTS FOR ALL ACCOUNTS WILL BE CLEARED WITH THIS PROCESS. CLEARING 'TO-DATE' FIELDS FOR INDIVIDUAL ACCOUNTS MUST BE DONE FROM VENDOR ACCOUNT SCREENS, IF REQUIRED. ------------------------------------------------------------------------------ Each of the 'To-Date' keys in Diagram #5-17 will present a warning screen before clearing can begin. The [OK] key will begin the clearing process. The [CANCEL] key will return you to the Accounts Payable menu without clearing. [5-25] INTRODUCTION TO INVENTORY MANAGEMENT This section introduces you to the process of inventory management, describes some of the benefits of a computerized inventory system and lists some the special features of the B.E.S.T. Business Management Inventory system. WHAT IS INVENTORY MANAGEMENT? Inventory management can be many things to many people depending upon the type, size or complexity of the inventory and the skills and resources available to the owner or manager. It can include a range of activities from a simple count of items recorded once a year at "inventory time" to an extensive computer supported system such as may be found in a large manufacturing company or retail department store. The basics of inventory management are the same, regardless of the size of the organization or the type of business. They all record and report information on the quantity, cost and price of inventory items on-hand at a point in time. If an inventory system is to be an effective management aid, however, it should contain a number of important management features beyond the basics of tracking quantities, costs, etc. AN INFORMATION SYSTEM. The first requirement of any inventory system, manual or computer-aided, is that it provide a source of information. Inventory information may include: a) Descriptions b) Quantities c) Suppliers d) Purchase costs e) Selling prices f) Sales history [6-1] Information can be selected, accumulated and sorted into many forms for management information. The speed and efficiency of preparing meaningful reports from that information will depend upon: a) The amount of information available b) Your skills and experience c) The complexity of the reports d) The amount and quality of computer support available, if any. A COMMUNICATIONS PROCESS. When the ability exists to produce meaningful management information from an inventory management system, a number of significant communications links may be established. First, the amount, mix and value of inventories may be derived and communicated to all members of the company for decision making on inventory investment levels, purchase strategies, sales promotion programs, and related business activities. A key communications link which can be improved is the one between you and your suppliers. More constructive relationships can develop when specific information can be presented on the performance of each supplier's goods. Steps can be taken to improve purchase patterns when you AND the supplier are knowledgeable of inventory performance. Another communications link that can be improved quickly when inventories are managed, is with employees who have access to the equipment or merchandise. Disappearance and theft of inventory drastically reduces when employees are aware that auditing is a normal part of the business and not just a once a year exercise. One of the most important communications links is between you and your accountant. Up-to-date information on inventory values, mixes and perform- ance can be of immense value to accounting professionals in assisting you with the development of inventory strategies, as well as for providing financial information for tax reporting. A MANAGEMENT DISCIPLINE. If inventory management were to be defined in a few words, it would be described as a management discipline. Proper management of an inventory process, manual or computer supported, requires a dedication to data collection, processing and reporting. [6-2] When sufficient discipline is applied to ensure routine inventory system maintenance, time and effort will usually be reduced due to the increased knowledge and experience gained by ALL individuals supporting the process. The discipline required for information maintenance, then, results in a much more stable and consistent management process. A COST CONTROL SYSTEM. Since inventories can be such a large part of the financial base of your company, the management of those inventories should be recognized as one of the most important processes affecting financial performance. Easily obtained and accurate information relating to the amount and composition of inventories can be a significant contributor to improving the cash position of your company, if used to its full extent. For instance, identifying and acquiring inventories with higher turns and selling off lagging inventory items can produce significant and permanent cost reductions due to a reduced inventory investment. Many of the cost control and financial performance features of inventory management are addressed throughout this section of the manual. B.E.S.T. BUSINESS MANAGEMENT INVENTORY ACTIVITY - B.E.S.T. Inventory Activity encompasses a full range of inventory manage- ment features normally associated with systems costing much more than the entire B.E.S.T. Business Management system. Design techniques included in the B.E.S.T. system have provided very fast operations for data entry, data recall and report generation without sacrificing capacity. Extensive reports can be generated quickly from the pre-designed choices as well as from custom reports with almost infinite variations designed right on the screen. The reporting capability includes: [6-3] - Fourteen (14) pre-designed, ready to use reports including: Price lists Shortage reports Inventory valuation Supplier volume reports Product availability reports Inventory performance reports - Custom reports which you design and store for future use This extensive reporting capability will immediately turn your inventory system into an important information management tool. HOW CAN THE B.E.S.T. SYSTEM BENEFIT YOUR BUSINESS? - A number of important benefits may be realized from the use of the B.E.S.T. Inventory system. Many of the benefits will have long-term impacts on company performance while helping to improve day-to-day operations. Some of these benefits are discussed below. IMPROVED PURCHASING AND STOCKING STRATEGIES. The availability of accurate historical information on specific inventory items or categories allows more effective analysis and decision making regarding the source, mix, timing and quantities of purchases. For example, accurate historical information can help you to determine levels, types and timing of key seasonal items. Another way purchasing strategies may be established is through product/ supplier performance analysis. Sales and profitability information can be easily extracted from the inventory data base to test performance. Weak and strong performers can be identified to allow re-direction of purchasing programs away from less effective products and/or suppliers and toward the better performers. [6-4] IMPROVED INVENTORY PERFORMANCE MEASURES. The speed and efficiency provided by the B.E.S.T. system allows you to establish and track inventory performance in ways not feasible by hand or with most Personal Computer inventory systems. For instance, extensive historical information can be quickly analyzed to establish inventory turns and cost vs. sales as a basis for setting performance objectives. Similar information can then be monitored on a regular basis to test for improvement. Also, the establishment of inventory performance measures and testing for actual performance against those performance measures, will provide a method for profit planning. For example, changes in inventory mix toward more profitable margins and increases in inventory turns can be translated directly into improved financial performance. IMPROVED INVENTORY TRACKING. The B.E.S.T. system will improve your ability to track items and categories of inventory since the initial purpose of the system is to collect and report on price, cost, quantities, etc. The computer merely replaces your manual process and increases the speed and accuracy of information recall and reporting. IMPROVED CUSTOMER SERVICE. The computer-aided B.E.S.T. inventory system can service customer inquiries by providing rapid recall of current information on availability, delivery position, back-orders, customer holds, etc. that cannot be supported by a manual process. This fast and accurate response to inventory questions will contribute to increased sales and help to build a larger customer base since customers tend to migrate to the businesses where they receive the best over-all service. REDUCED INVENTORY COST. As was stated earlier in this section, improved visibility of current inventories and historical performance will assist in identifying the most and least effective items and/or categories of items in stock. Increased experience and the accumulation of historical information will provide you with the means to position your inventories to the most profitable levels and mixes. The reporting and analysis available with the B.E.S.T. Business Management inventory section provides most of the management information needed for making informed business decisions. [6-5] INVENTORY MANAGEMENT SYSTEM MENU This section provides a brief explanation of the functions available within the inventory Management menu selections. ------------------------------------------------------------------------------ MOST INVENTORY ENTRIES WILL BE PERFORMED AUTOMATICALLY FROM INVOICING, RECEIVING AND ORDER PROCESSING. THE INVENTORY MANAGEMENT SYSTEM MAY BE USED INDEPENDENTLY OF THE OTHER SYSTEMS, IF DESIRED. ------------------------------------------------------------------------------ The Inventory menu (Diagram #6-1) is accessed from the [INVENTORY] selection on the Main Menu. A brief overview of each of the selections in the Inventory menu is provided below. {Diagram #6-1} ADD NEW INVENTORY ITEMS - This selection is used for entering new inventory items into the Inventory Management system. All information required to establish individual inventory items is entered in this section. [6-6] EDIT EXISTING INVENTORY ITEMS - The edit selection is used to enter changes to inventory item information after an item has been created with the [ADD NEW INVENTORY ITEM] selection. SET UP PRODUCT GROUPS - This section is used to create categories of inventory items. Items are grouped into categories to simplify the handling of interfaces to the General Ledger and to provide more flexible inventory reporting. REPORT WRITER - The Report Writer is used to prepare report formats from information contained in the Inventory system. The information contained in the report is selected from a list of 29 different inventory data fields and performance factors. The performance factors can be listed and sorted in any order. REPORTS - The reports section is used to recall the CUSTOM report formats which were developed by the REPORT WRITER and to access several PRE-DESIGNED reports which are ready to use. The report formats may be used with different limits to produce an almost endless variety of inventory performance reports. CLEAR TO-DATE AMOUNTS - This section is used to clear the month-to-date, quarter-to-date and year-to-date accumulations of inventory unit sales, dollar sales and cost of goods. SYSTEM MENU - This selection is used to RETURN to the B.E.S.T. Business Management system main menu after completing Inventory Management activities. Each of the selections on the Inventory Management menu are covered in detail in the following sections using examples and illustrations whenever possible. [6-7] ESTABLISHING INVENTORY PRODUCT GROUPS Product groups are categories of inventory items with similar characteristics such as type or function. For example, a video store may have categories of products made up of video recorders, television sets, radios, etc. The video business owner or manager may find it useful to manage groups of products such as these as well as individual item. Product groups are used to improve inventory reporting and analysis and to assist with the integration process. Each inventory item is assigned to a product group at the time the item is entered into the inventory data base. The P/G number is used, later, for reporting by product group and for General Ledger accounting transfers. This section will illustrate the process for establishing inventory product groups and assigning individual inventory items to product groups. {Diagram #6-2} [6-8] The Product Group set up process is accessed from the [SET UP PRODUCT GROUPS] selection on the Inventory Management main menu in Diagram #6-2. The [SET UP PRODUCT GROUPS] key will produce the Inventory Product Groups screen in Diagram #6-3. The Inventory Product Group (P/G) screen is used for all product group set ups. {Diagram #6-3} PRODUCT GROUP NUMBERS - The first entry in the Inventory Product Group screen is the Product Group number. The P/G number is can be any number from one (1) to 99, any two letters from A to Z or any combination of numbers and letters. The P/G number is a code to tie categories of products together. DESCRIPTION - The description is any printed information which is meaningful to you for naming the Product Group. The Description can be selected in the report- ing process to name P/G's, if desired. [6-9] GENERAL LEDGER ACCOUNTS - The four (4) entries on the right side of the P/G screen (Diagram #6-3) are for General Ledger accounts used in the automated transaction process. The accounts number assignments set up transfer destinations in the General Ledger for all transactions affected by a specific business function such as an invoice. A typical transaction affecting inventory, such as an invoice, will make entries into the appropriate General Ledger Transaction files for each of the G/L accounts in Diagram #6-3. INVENTORY ACCOUNT. Each product group should have a separate G/L account number for summarizing G/L activity at the product group level. The Inventory entry (Inv) is the General Ledger asset account which will be assigned to all items in the product group. A separate G/L account for each inventory item would soon become unmanageable and of little use. The Inventory account in the General Ledger would be automatically CREDITED (reduced) during invoicing by the COST amount assigned to each item on the inventory item screens in the next section. COST OF GOODS SOLD ACCOUNT. The 'COGS' field is the G/L Cost Of Goods account for all inventory items in the Product Group. This account would be automatically DEBITED during invoicing. SALES ACCOUNT. The 'Sale' field is the G/L revenue account for all inven- tory items in the Product Group. This account would be automatically CREDITED during invoicing. SALES RETURNS ACCOUNT. The Sales Returns account (S/R) is used for placing inventory back into stock from a prior sale. This account would collect all return amounts for the Product Group, effectively reducing total sales by the amount of the returns. This account would be automatically DEBITED during a Sales Return Business Function. [6-10] The Inventory Product Group screen can be used to create up to 130 product groups. An example of Product Group assignment is shown in Diagram #6-4. {Diagram #6-4} The [SALE] key must be used to store the Product Group setup information in Diagram #6-4. The [DONE] key will return you to the Inventory main menu. PRINTING PRODUCT GROUP LISTINGS - Listings of the Product Group information contained in the Inventory Product Group screen can be printed for auditing the data or to create an off-line reference. The [PRINT] key in Diagram #6-4 is used to list the Product Group setup information to the printer. An example of a Product Group listing is included on the following page. [6-11] An example of a Product Group listing is shown below. ---------------------------------------------------------------------------- 20-JAN-86 ADVANCED HOME ELECTRONICS Page 1 INVENTORY PRODUCT GROUPS ---------------------------------------------------------------------------- (G/L ACCOUNT NUMBERS) COST OF SALES PG DESCRIPTION INV. GOODS SALES RET. -- ------------------------- ----- ----- ----- ----- 10 MOVIES 1210 5110 4110 4199 20 VIDEO EQUIPMENT 1220 5120 4120 4199 30 TELEVISION EQUIPMENT 1230 5130 4130 4199 40 ACCESSORIES 1240 5140 4140 4199 50 SERVICE 1250 5150 4150 4199 90 OTHER 1290 5190 4190 4199 [6-12] ENTERING AND MANAGING INVENTORY INFORMATION This section provides a detailed description of the inventory editing system. The editing functions are used to enter new inventory items and to make changes directly to existing inventory items. There will be little need for direct entries to the inventory system when using Business Functions, since all day-to-day inventory management is automated. Most information will be entered into the inventory system from Business Functions such as Receiving and Invoicing. ADDING NEW INVENTORY ITEMS - Inventory items are established in the inventory system through the [ADD NEW INVENTORY ITEMS] selection on the Inventory Management menu in Diagram #6-5. The [ADD NEW INVENTORY ITEMS] key will produce the new item entry screen in Diagram #6-6. The Add New Inventory Items screen is used for entering new inventory items into the inventory system. All changes to existing inventory items are made through the [EDIT EXISTING INVENTORY ITEMS] selection. {Diagram #6-5} [6-13] The New Item screen in Diagram #6-6 has been filled in with information for a typical item as shown in Diagram #6-7. Input screens always appear with the cursor on the Part Number, ready for entering data. {Diagram #6-6} UNDERLINED fields are inputs from the keyboard or from Business Func- tions. All underlined fields should be entered when you enter a new item to assure proper record updating such as cost averaging, gross profit calculations, etc. Fields WITHOUT underlines are calculated by the system. Calculated fields CANNOT be entered from the keyboard. Individual information fields will be explained below. [6-14] {Diagram #6-7} The 'Part Number' can be any 12 digit alphanumeric reference number you wish to use to track inventory items. Items will be stored in Part number order for screen look-up. The 'Description' is any 25 character alphanumeric name you wish to use to describe the item. 'Product Group' is the assigned product group code. The product group code must be included on this screen AND in the Product Group setup section for proper integration with the General Ledger and for inventory reporting by product group. The 'Vendor #' is the vendor assignment for automatic Purchase Order printing. Your first choice source for the item must be entered here and the vendor must be included in the Vendor file for purchasing and for Accounts Payable. 'Unit of Measure' is any two (2) characters representing a unit of measure for the item such as EA for each, BX for box, etc. This field is for information only, since no calculations are made on unit of measure. [6-15] 'On Hand' items are those inventory items which are in stock and uncommitted to customers. 'On Order' items are items which have been placed on order through Purchase Orders but have not been received. 'Committed' items are those placed on hold due to customer orders not yet shipped. The 'Safety' level is the minimum stocking level you wish to maintain for each item. 'Price' is the current selling price for the item which will be used for invoicing. 'Cost' is the most recent purchase cost (per unit) for the item. 'Value' is the total value of existing inventory at cost (on hand (X) cost). 'Average Cost' is the average cost of all items purchased to-date. 'Avail Now' represents the number of items which can be quoted for delivery (on hand less committed) while 'Avail Future' represents the number of items currently available plus any items on order (available now (+) on order). The '(+/-) Safety' figure is the quantity above or below your established safety level (on hand (+) on order (-) committed). The to-date figures in the lower-left section of the screen are month-to-date, quarter-to-date and year-to-date accumulated unit sales, dollar sales and Cost of Goods amounts. You may wish to enter the to-date figures when the item is initially estab- lished. If no to-date figures are entered, accumulations will start from zero (0). Once accumulated amounts are established, up-dates will be maintained automatically from Business Function activities. 'Gross Profit' and 'Ave. % Markup' are continuously calculated against unit and dollar sales accumulations during business Function activities. Gross Profit is equal to Sales minus Cost of Goods. Average Percentage of Markup uses the conventional calculation for markup (Sales minus Cost of Goods divided by Cost of Goods). New item entries MUST be saved with the [SAVE] key before continuing to the next new item. The [DONE] key will return you to the Inventory Management menu when all new items have been entered. [6-16] EDITING EXISTING INVENTORY ITEMS - Once an item has been entered in the New Item entry section it can be re-called for changes or corrections through the [EDIT EXISTING INVENTORY ITEMS] selection on the Inventory Management menu (Diagram #6-5). The Edit Inventory Items screen in Diagram #6-8 is called from the [EDIT EXISTING INVENTORY ITEMS] key. The Edit screen is similar to the new item entry screen except that you have access to all inventory items with the keys at the bottom of the screen. The Edit screen is used for CORRECTING information on existing items. It is NOT used to make daily changes to inventory quantities and to-date figures. The first item in the file (in Part Number order) will be called to the screen when activating the [EDIT EXISTING INVENTORY ITEMS] key on the Inventory Management menu. Specific items are located with the screen keys at the bottom of the screen using the Part Number (FIND) or the Description (SEARCH). Items can be scanned by Part Number using the scan keys. The cursor will automatically locate on the last data position used on the current screen when locating another item. For example, if you have just changed the Price of one item, the cursor will be positioned on the Price field for the next item you recall. This cursor positioning process improves the speed and convenience of data editing by keeping the cursor focused on one element such as the Price for sales price adjustments. [6-17] {Diagram #6-8} The Edit screen allows changes to be made in any UNDERLINED field, just as in the new item input screen. Any changes made directly to the Edit screens should be made with caution, however, since the accounting system is automatically maintained from Business Functions. DELETING INVENTORY ITEMS - It is important to use the delete process cautiously, since a deleted item CANNOT be recovered. Also, if an item has been deleted during the year, reports printed before the deletion will contain a different mix of products than reports printed after the deletion. These reporting differences may be misleading for to-date performance reporting. The item to be deleted can be called to the screen for review by Part Number (FIND), by Description (SEARCH) or by scanning in Diagram #6-10 before completing the delete process. [6-18] {Diagram #6-9} Activating the [DELETE] key on Diagram #6-10 will delete the item from the file and return you to an active item on the Edit Inventory Items screen. Continue the process until all necessary items have been deleted. {Diagram #6-10} [6-19] PREPARING CUSTOM INVENTORY REPORTS The Reports section of the Inventory Management system contains the custom reporting and the standard reporting processes. This section describes the Report Writer which is used to prepare and store the custom reports used in the Reports section. The custom Report Writer is a powerful and easy to use process for creating customized inventory reports to suit many special management information needs. Report content is selected from inventory performance features, sorting order and 'limit fields' are established, and the report format is saved for future use. This process is discussed on the following pages. {Diagram #6-11} The Report Writer is accessed from the [REPORT WRITER] selection on the Inventory Management menu in Diagram #6-11. The [REPORT WRITER] key will produce the Inventory Report Writer menu in Diagram #6-12. [6-20] {Diagram #6-12} CREATING A NEW CUSTOM REPORT - New custom reports are produced from the [CREATE A NEW REPORT] selection on the Report Writer menu. The [CREATE A NEW REPORT] key will produce the selection screen in Diagram #6-13. This screen is used to select information fields for printing, sorting and limiting. {Diagram #6-13} [6-21] A specific report can use any combination of information fields up to a total of 80 characters. A character counter (Report Width), placed to the right of the 'Report Title' field, aids in the design of the report. The counter shows the accumulated number of characters selected. The character accumulation feature assures that all reports can use 8 1/2 X 11 in. paper and be printed with an 80 column printer. {Diagram #6-14} ------------------------------------------------------------------------------ THE REPORTING SYSTEM WILL NOT ALLOW MORE THAN 80 CHARACTERS TO ACCUMULATE IN ANY SINGLE REPORT. ------------------------------------------------------------------------------ REPORT TITLE. The report title can be any combination of 25 or fewer characters. The title will appear on the Custom Report Edit menu and on the Custom Report Print menu exactly as entered here. The title should be descriptive enough to locate it easily on the Custom Report menu. SELECTING REPORTING FIELDS. The 'Print Fields' are the INFORMATION FIELDS you wish to include on the printed report. The fields will be printed on the finished report in the order you select them in this section (from left to right). From one (1) to ten (10) fields may be selected on a single report, depending on available printing space. [6-22] DETERMINING LIMITS FOR SELECTION. Since most management questions involve specific issues, a management report should include only the information needed to answer a specific question. For this reason, the Inventory reporting process provides a feature to limit the information contained in a report. A minimum and maximum reporting range for a field is selected from any segment of the available data, resulting in a smaller, more precise report. For example, a report including only a single Product Group of items can be developed using the Limit Fields. Product Group (#3) is selected as a Limit Field (Diagram #6-14). When the report is requested in the Reports section, Product Group will be presented as an input field from which you may select a range of Product Groups to include in the final report. A single Product Group, a series of Product Groups or all Product Groups can be selected at that time. Up to five (5) fields can be used for setting limits on each report. The Limit Fields can be different from the Print Fields and Sort Fields. SELECTING FIELDS FOR SORTING. A report needs to include the right information to be useful AND the information needs to be listed in an order that can be quickly scanned. Sorting of the information fields can be done in a pre-described order to make the report more readable and more meaningful. Sorting can be done on one (1), two (2) or three (3) fields by entering the inventory feature numbers into the two digit entry Sort Fields. The report will be sorted in the order of the entries. The first field selected will be sorted first. The next sorting will be by the second field selected, within the first field, etc. For example, if you chose to sort by Vendor, Product Group and Price, the report would be listed by Vendor with Product Groups listed in order and items sorted within Product Groups. Sorting can also be requested in ascending (A) or descending (D) order for each selected Sort Field. An 'A' or a 'D' is entered in the single character entry field behind each Sort Field. [6-23] If alphabetical names are used in a sorted field, an ascending sort would print the names from A to Z. A descending sort would print the names from Z to A. If numeric fields use an ascending sort, the listing will be printed from the lowest to the highest numbers. Descending numeric sorts will print from the highest to the lowest numbers. The report MUST be sorted with the [SAVE] key when you have completed format design. An example of a report is included at the end of the Custom Reports section. EDITING AN EXISTING REPORT - A custom report which has been developed and saved, may be re-called for editing with the [EDIT EXISTING REPORT] key on the Report Writer menu (Diagram #6-12). The [EDIT EXISTING REPORT] key will produce a menu listing all existing custom reports (Diagram #6-15). Any of the listed reports can be recalled for change with the mouse and arrow, as with any menu item. {Diagram #6-15} [6-24] The Edit Inventory Report screen in Diagram #6-16 will be presented when the screen key for the selected report is activated. This screen is the same as the screen which was used to create the report. Changes can be made to the report format the same as with a new report. {Diagram #6-16} The report screen MUST be re-saved after entering changes, using the [SAVE] key or the changes will be lost. DELETING AN OLD REPORT - Unwanted report formats can be deleted from the reporting system with the [DELETE AN OLD REPORT] selection on the Report Writer menu (Diagram #6-12). [6-25] {Diagram #6-17} The [DELETE AN EXISTING REPORT] key will present the list of existing reports in Diagram #6-17. Selecting a report from the list will bring up a warning screen (Diagram #6-18) before deleting occurs. The [DELETE] key will complete the process. {Diagram #6-18} [6-26] PRINTING INVENTORY REPORTS The REPORTS section of the Inventory Management system is used for producing printed paper reports from inventory data. Custom reports which were designed with the Report Writer AND a selection of PRE-DESIGNED or standard reports are available. The printer must be turned on with paper loaded and correctly positioned. The print head should be placed about one line below the top edge of the paper for the first report. The paper will maintain this position for the remaining pages and reports. {Diagram #6-19} [6-27] The Reports section is accessed through the [REPORTS] selection on the Inventory Management menu (Diagram #6-19). The [REPORTS] key will produce the Inventory Reports screen in Diagram #6-20. {Diagram #6-20} [6-28] STANDARD REPORTS - These reports have been developed to handle a number of on-going reporting needs and to give you a quick start with inventory reporting. This group of reports will prove to be useful and easy to use on a regular basis. Variations of these reports can also be produced quickly in the CUSTOM reports section, if desired. ------------------------------------------------------------------------------ SAMPLES OF EACH OF THESE REPORTS ARE INCLUDED AT THE END OF THIS SECTION. ------------------------------------------------------------------------------ The pre-designed reports are accessed from the [STANDARD REPORTS] selection on the Inventory Reports screen in Diagram #6-20. {Diagram #6-21} The [STANDARD REPORTS] selection will produce the list of standard reports in Diagram #6-21. When a report (i.e., Price List) is selected form this list, another screen will present a set of two or more limiting entries (Diagram #6-22). These entries can be used to restrict the report to a very selective group of items or they may be left empty to include all items in the inventory system. [6-29] {Diagram #6-22} In our example, we will limit our report to Product Group 30 (television) by entering 30 in the From AND To fields. {Diagram #6-23} [6-30] After all limit field entries have been completed, the [PRINT] key will begin the printing process. A message screen will be presented as a reminder to prepare the printer. A second [PRINT] key will start the printer. {Diagram #6-24} [6-31] ---------------------------------------------------------------------------- 20-JAN-86 ADVANCED HOME ELECTRONICS Page 1 PRICE LIST ---------------------------------------------------------------------------- 30: TELEVISION EQUIPMENT PART NUMBER DESCRIPTION PRICE ------------ -------------------------------- --------- 4546 W 13 INCH G.E. TELEVISION 320.00 4726 W 19 INCH G.E. TELEVISION 409.00 4850 K 25 INCH G.E. TELEVISION 658.00 40: ACCESSORIES PART NUMBER DESCRIPTION PRICE ------------ -------------------------------- --------- 1610 COMPUTER STAND 129.00 STG 101 T.V. STAND 79.00 STG 762 T.V. STAND 225.00 REPORT INCLUDES 6 PRODUCTS REPORT LIMITS ------------------- P/G FROM 30 TO 40 [6-32] ---------------------------------------------------------------------------- 14-JUN-86 ADVANCED HOME ELECTRONICS Page 1 PRICE-COST COMPARISON ---------------------------------------------------------------------------- 30: TELEVISION EQUIPMENT PART NUMBER DESCRIPTION PRICE COST MARKUP % ------------ ------------------------ --------- ---------- -------- 4546 W 13 INCH G.E. TELEVISION 320.00 249.00 28.5 4726 W 19 INCH G.E. TELEVISION 409.00 295.00 38.6 4850 K 25 INCH G.E. TELEVISION 658.00 480.00 37.1 40: ACCESSORIES PART NUMBER DESCRIPTION PRICE COST MARKUP % ------------ ------------------------ --------- --------- -------- 1610 COMPUTER STAND 129.00 95.00 35.8 STG 101 T.V. STAND 79.00 48.00 64.6 STG 762 T.V. STAND 225.00 159.00 41.5 REPORT INCLUDES 6 PRODUCTS REPORT LIMITS ------------------- P/G FROM 30 TO 40 [6-33] ---------------------------------------------------------------------------- 14-JUN-86 ADVANCED HOME ELECTRONICS Page 1 PRODUCT SHORTAGES ---------------------------------------------------------------------------- REPORT INCLUDES 0 PRODUCTS REPORT LIMITS ------------- Vendor # FROM 30 to 40 (+/-) Safety FROM ANY TO 0 [6-34] ---------------------------------------------------------------------------- 14-JUN-86 ADVANCED HOME ELECTRONICS Page 1 PRODUCT AVAILABILITY ---------------------------------------------------------------------------- 30: TELEVISION EQUIPMENT QTY QTY QTY QTY PART ON ON QTY AVAIL AVAIL NUMBER DESCRIPTION HAND ORDER COMTD NOW FUTUR ------ ------------------------ ---- ----- ----- ----- ----- 4546 W 13 INCH G.E. TELEVISION 5 10 1 4 14 4726 W 19 INCH G.E. TELEVISION 6 12 1 5 17 4850 K 25 INCH G.E. TELEVISION 2 4 0 2 6 TELEVISION EQUIPMENT 13 26 2 11 37 40: ACCESSORIES QTY QTY QTY QTY PART ON ON QTY AVAIL AVAIL NUMBER DESCRIPTION HAND ORDER COMTD NOW FUTUR ------- ------------------------ ---- ----- ----- ----- ----- 1610 COMPUTER STAND 2 1 0 2 3 STG 101 T.V. STAND 2 0 0 2 2 STG 762 T.V. STAND 2 2 0 2 4 ACCESSORIES 6 3 0 6 9 TOTAL 19 29 2 17 46 REPORT INCLUDES 6 PRODUCTS REPORT LIMITS ----------------- P/G FROM 30 TO 40 [6-35] ---------------------------------------------------------------------------- 14-JUN-86 ADVANCED HOME ELECTRONICS Page 1 PRICE VALUATION ---------------------------------------------------------------------------- QTY ON PRICE DESCRIPTION HAND VALUATION -------------------------- ----- ---------- TELEVISION EQUIPMENT 6 2454.00 ACCESSORIES 4 608.00 TOTAL 10 3062.00 REPORT INCLUDES 6 PRODUCTS REPORT LIMITS ----------------- P/G FROM 30 TO 40 [6-36] ---------------------------------------------------------------------------- 14-JUN-86 ADVANCED HOME ELECTRONICS Page 1 PRICE VALUATION ---------------------------------------------------------------------------- 30: TELEVISION EQUIPMENT QTY ON PRICE PART NUMBER DESCRIPTION HAND PRICE VALUATION ----------- ------------------------ ---- -------- --------- 4726 W 19 INCH G.E. TELEVISION 6 409.00 2454.00 4546 W 13 INCH G.E. TELEVISION 5 320.00 1600.00 4850 K 25 INCH G.E. TELEVISION 2 658.00 1316.00 TELEVISION EQUIPMENT 13 5370.00 40: ACCESSORIES QTY ON PRICE PART NUMBER DESCRIPTION HAND PRICE VALUATION ----------- ------------------------ ---- -------- --------- STG 762 T.V. STAND 2 225.00 450.00 1610 COMPUTER STAND 2 129.00 258.00 STG 101 T.V. STAND 2 79.00 158.00 ACCESSORIES 6 866.00 TOTAL 19 6236.00 REPORT INCLUDES 6 PRODUCTS REPORT LIMITS ----------------- P/G FROM 30 TO 40 [6-37] ---------------------------------------------------------------------------- 14-JUN-86 ADVANCED HOME ELECTRONICS Page 1 AVERAGE COST VALUATION ---------------------------------------------------------------------------- QTY ON PRICE DESCRIPTION HAND VALUATION -------------------------- ----- ---------- TELEVISION EQUIPMENT 6 3975.00 ACCESSORIES 4 604.00 TOTAL 10 4579.00 REPORT INCLUDES 6 PRODUCTS REPORT LIMITS ----------------- P/G FROM 30 TO 40 [6-38] ---------------------------------------------------------------------------- 14-JUN-86 ADVANCED HOME ELECTRONICS Page 1 AVERAGE COST VALUATION ---------------------------------------------------------------------------- 30: TELEVISION EQUIPMENT QTY ON AVG COST PART NUMBER DESCRIPTION HAND AVG COST VALUATION ----------- ------------------------ ---- -------- --------- 4726 W 19 INCH G.E. TELEVISION 6 295.00 1770.00 4546 W 13 INCH G.E. TELEVISION 5 249.00 1245.00 4850 K 25 INCH G.E. TELEVISION 2 480.00 960.00 TELEVISION EQUIPMENT 13 3975.00 40: ACCESSORIES QTY ON AVG COST PART NUMBER DESCRIPTION HAND AVG COST VALUATION ----------- ------------------------ ---- -------- --------- STG 762 T.V. STAND 2 159.00 318.00 1610 COMPUTER STAND 2 95.00 190.00 STG 101 T.V. STAND 2 48.00 96.00 ACCESSORIES 6 604.00 TOTAL 19 4579.00 REPORT INCLUDES 6 PRODUCTS REPORT LIMITS ----------------- P/G FROM 30 TO 40 [6-39] ---------------------------------------------------------------------------- 14-JUN-86 ADVANCED HOME ELECTRONICS Page 1 MTD SALES ---------------------------------------------------------------------------- 30: TELEVISION EQUIPMENT MTD QTY PART NUMBER DESCRIPTION SOLD MTD SALES ----------- ------------------------ ---- ----------- 4850 K 25 INCH G.E. TELEVISION 1 645.00 4546 W 13 INCH G.E. TELEVISION 2 629.00 4726 W 19 INCH G.E. TELEVISION 1 400.00 TELEVISION EQUIPMENT 4 1674.00 40: ACCESSORIES MTD QTY PART NUMBER DESCRIPTION SOLD MTD SALES ----------- ------------------------ ---- ----------- STG 762 T.V. STAND 2 423.00 STG 101 T.V. STAND 4 316.00 1610 COMPUTER STAND 1 129.00 ACCESSORIES 7 868.00 TOTAL 11 2542.00 REPORT INCLUDES 6 PRODUCTS REPORT LIMITS ------------------ P/G FROM 30 TO ANY [6-40] ---------------------------------------------------------------------------- 14-JUN-86 ADVANCED HOME ELECTRONICS Page 1 QTD SALES ---------------------------------------------------------------------------- 30: TELEVISION EQUIPMENT QTD QTY PART NUMBER DESCRIPTION SOLD QTD SALES ----------- ------------------------ ---- ----------- 7260 W 19 INCH G.E. TELEVISION 5 2040.00 4850 K 25 INCH G.E. TELEVISION 3 1965.00 4546 W 13 INCH G.E. TELEVISION 6 1920.00 TELEVISION EQUIPMENT 14 5925.00 40: ACCESSORIES QTD QTY PART NUMBER DESCRIPTION SOLD QTD SALES ----------- ------------------------ ---- ----------- STG 762 T.V. STAND 4 860.00 STG 101 T.V. STAND 7 558.00 1610 COMPUTER STAND 3 387.00 ACCESSORIES 14 1805.00 TOTAL 28 7730.00 REPORT INCLUDES 6 PRODUCTS REPORT LIMITS ------------------ P/G FROM 30 TO ANY [6-41] ---------------------------------------------------------------------------- 14-JUN-86 ADVANCED HOME ELECTRONICS Page 1 YTD SALES ---------------------------------------------------------------------------- 30: TELEVISION EQUIPMENT YTD QTY PART NUMBER DESCRIPTION SOLD YTD SALES ----------- ------------------------ ---- ----------- 4726 W 19 INCH G.E. TELEVISION 12 4890.00 4546 W 13 INCH G.E. TELEVISION 15 4750.00 4850 K 25 INCH G.E. TELEVISION 5 3250.00 TELEVISION EQUIPMENT 32 12890.00 40: ACCESSORIES YTD QTY PART NUMBER DESCRIPTION SOLD YTD SALES ----------- ------------------------ ---- ----------- STG 101 T.V. STAND 14 1106.00 STG 762 T.V. STAND 5 1100.00 1610 COMPUTER STAND 7 903.00 ACCESSORIES 26 3109.00 TOTAL 58 15999.00 REPORT INCLUDES 6 PRODUCTS REPORT LIMITS ----------------- P/G FROM 30 TO 40 [6-42] ---------------------------------------------------------------------------- 14-JUN-86 ADVANCED HOME ELECTRONICS Page 1 MTD PROFITABILITY ---------------------------------------------------------------------------- 30: TELEVISION EQUIPMENT MTD COST OF PART NUMBER DESCRIPTION MTD SALES GOODS SOLD MTD PROFIT ----------- ------------------------ --------- ----------- ---------- 4850 K 25 INCH G.E. TELEVISION 645.00 480.00 165.00 4546 W 13 INCH G.E. TELEVISION 629.00 498.00 131.00 4726 W 19 INCH G.E. TELEVISION 400.00 295.00 105.00 TELEVISION EQUIPMENT 1674.00 1273.00 401.00 TOTAL 1674.00 1273.00 401.00 REPORT INCLUDES 3 PRODUCTS REPORT LIMITS ------------------ P/G FROM 30 TO 30 [6-43] ---------------------------------------------------------------------------- 14-JUN-86 ADVANCED HOME ELECTRONICS Page 1 QTD PROFITABILITY ---------------------------------------------------------------------------- 30: TELEVISION EQUIPMENT QTD COST OF PART NUMBER DESCRIPTION QTD SALES GOODS SOLD QTD PROFIT ----------- ------------------------ --------- ----------- ---------- 4726 W 19 INCH G.E. TELEVISION 2040.00 1472.50 567.50 4850 K 25 INCH G.E. TELEVISION 1965.00 1440.00 525.00 4546 W 13 INCH G.E. TELEVISION 1920.00 1494.00 426.00 TELEVISION EQUIPMENT 5925.00 4406.50 1518.50 TOTAL 5925.00 4406.50 1518.50 REPORT INCLUDES 3 PRODUCTS REPORT LIMITS ------------------ P/G FROM 30 TO 30 [6-44] ---------------------------------------------------------------------------- 14-JUN-86 ADVANCED HOME ELECTRONICS Page 1 YTD PROFITABILITY ---------------------------------------------------------------------------- 30: TELEVISION EQUIPMENT YTD COST OF PART NUMBER DESCRIPTION YTD SALES GOODS SOLD YTD PROFIT ----------- ------------------------ --------- ----------- ---------- 4726 W 19 INCH G.E. TELEVISION 4890.00 3534.00 1356.00 4546 W 13 INCH G.E. TELEVISION 4750.00 3736.00 1014.00 4850 K 19 INCH G.E. TELEVISION 3250.00 2400.00 850.00 TELEVISION EQUIPMENT 12890.00 9670.00 3220.00 TOTAL 12890.00 9670.00 3220.00 REPORT INCLUDES 3 PRODUCTS REPORT LIMITS ------------------ P/G FROM 30 TO 30 [6-45] CUSTOM REPORTS - Custom reports are printed from the Inventory Reports menu in Diagram #6-25. The [CUSTOM REPORTS] key will produce a list of existing Custom Reports as shown in Diagram #6-26. From this point, Custom Reports are printed in the same manner as Standard Reports. {Diagram #6-25} [6-46] All Custom reports are accessed in the same manner as the example report. {Diagram #6-26} A sample report is included on the following page. [6-47] ---------------------------------------------------------------------------- 14-JUN-86 ADVANCED HOME ELECTRONICS Page 1 EXTENDED PRICE LIST ---------------------------------------------------------------------------- 30: TELEVISION EQUIPMENT SAFE PART NUMBER DESCRIPTION PG UM QTY PRICE COST ----------- ------------------------ -- -- ---- ------- -------- 1610 COMPUTER STAND 40 EA 2 129.00 95.00 4546 W 13 INCH G.E. TELEVISION 30 EA 2 320.00 249.00 4726 W 19 INCH G.E. TELEVISION 30 EA 1 409.00 295.00 4850 K 25 INCH G.E. TELEVISION 30 EA 3 658.00 480.00 STG 101 T.V. STAND 40 EA 2 79.00 48.00 STG 762 T.V. STAND 40 EA 1 225.00 159.00 TOTAL 11 REPORT INCLUDES 6 PRODUCTS REPORT LIMITS ------------------ P/G FROM 30 TO 40 [6-48] SYSTEM INTERFACE TEST REPORT - This report is used for testing the interface accounts when the Inventory Management system is integrated with Order Processing, Invoicing, Accounts Receivable and the General Ledger. The report will test each inventory item for a valid Product Group and all Product Groups for valid General Ledger accounts. These accounts MUST be available for automatic transactions to be generated correctly from Business Functions. The Inventory Management Interface Report will list each account with an interface problem and indicate the fix required to correct the problem. The report is accessed from the Standard Report section. The [INTERFACE CHECK] selection on the Standard Inventory Reports menu in Diagram #6-27 will produce a Standard Report with no Limit Fields. {Diagram #6-27} [6-49] {Diagram #6-28} All corrections indicated by the report should be completed immediately. Another Interface Report will verify your corrections. An example Interface Report is included on the following page. [6-50] ---------------------------------------------------------------------------- 14-JUN-86 ADVANCED HOME ELECTRONICS Page 1 INVENTORY INTERFACE REPORT ---------------------------------------------------------------------------- PG: 10 MOVIES [1210] INVALID INVENTORY ACCOUNT PG: 10 MOVIES [4199] INVALID SALES RETURNS ACCOUNT PG: 20 VIDEO EQUIPMENT [1220] INVALID INVENTORY ACCOUNT PG: 20 VIDEO EQUIPMENT [4199] INVALID SALES RETURNS ACCOUNT PG: 30 TELEVISION EQUIPMENT [1230] INVALID INVENTORY ACCOUNT PG: 30 TELEVISION EQUIPMENT [5130] INVALID COST OF GOODS ACCOUNT PG: 30 TELEVISION EQUIPMENT [4199] INVALID SALES RETURNS ACCOUNT PG: 40 ACCESSORIES [1240] INVALID INVENTORY ACCOUNT PG: 40 ACCESSORIES [5140] INVALID COST OF GOODS ACCOUNT PG: 40 ACCESSORIES [4140] INVALID SALES ACCOUNT PG: 40 ACCESSORIES [4199] INVALID SALES RETURNS ACCOUNT PG: 50 SERVICE [1250] INVALID INVENTORY ACCOUNT PG: 50 SERVICE [5150] INVALID COST OF GOODS ACCOUNT PG: 50 SERVICE [4150] INVALID SALES ACCOUNT PG: 50 SERVICE [4199] INVALID SALES RETURNS ACCOUNT PG: 90 OTHER [1290] INVALID INVENTORY ACCOUNT PG: 90 OTHER [5190] INVALID COST OF GOODS ACCOUNT PG: 90 OTHER [4190] INVALID SALES ACCOUNT PG: 90 OTHER [4199] INVALID SALES RETURNS ACCOUNT 19 ERRORS [6-51] CLEARING TO-DATE FIELDS The 'To-Date' amounts for Sales, Cost of Goods, Gross Profit, etc. for each inventory item need to be cleared on a regular basis. This section describes the to-date clearing process for inventory items. The 'MTD', 'QTD' and 'YTD' amounts need to be cleared at the end of each accumulation period. For instance, 'MTD' amounts need to be cleared at the end of each month to begin new accumulations for the next month. Similarly, 'QTD' amounts must be cleared at the end of each quarter to begin new accumulations for the next quarter. 'YTD' amounts are cleared at the end of each year. The clearing process is accessed from the [CLEAR TO-DATE AMOUNTS] selection on the Inventory Management menu in Diagram #6-29. The [CLEAR TO-DATE AMOUNTS] will present the short menu in Diagram #6-30 where each of the 'To-Date' fields may be selected. {Diagram #6-29} [6-52] ------------------------------------------------------------------------------ 'TO-DATE' AMOUNTS FOR ALL INVENTORY ITEMS WILL BE CLEARED WITH THIS PROCESS. CLEARING 'TO-DATE' FIELDS FOR INDIVIDUAL ITEMS MUST BE DONE FROM INVENTORY ITEM SCREENS, IF REQUIRED. ------------------------------------------------------------------------------ {Diagram #6-30} [6-53] Each of the 'To-Date' keys in Diagram #6-30 will present a warning screen (Diagram #6-31) before clearing can begin. The [OK] key will begin the clearing process. The [CANCEL] key will return you to the Inventory Management menu before clearing can begin. {Diagram #6-31} [6-54] INTRODUCTION TO SERVICE MANAGEMENT This section introduces you to the process of service management, describes some of the benefits of a computerized service management system and lists some of the special features of the B.E.S.T. Business Management Services system. WHAT IS SERVICES MANAGEMENT? - Service Management is the process of organizing and managing service businesses such as television repair, auto repair, medical services, etc. Each service, such as television repair, is given a rate and a unit of measure. Invoices can be produced just as for the sale of items in inventory. Customer sales for each service are tracked to produce valuable management information on the performance of service areas and/or individuals providing the service. The basics of service management are similar to inventory management except for the lack of inventory and cost of goods accounts in the General Ledger. These accounts are unnecessary since there is no transfer of goods to the customer. Many of the features of an inventory management system are also part of an effective service management system. AN INFORMATION SYSTEM. A service management system provides you with a source of information. Service information may include: a) Categories of service b) Quantities (units of service such as hours) c) Price per unit of service [7-1] Information can be selected, accumulated, sorted, etc. into many forms for management information. The speed and efficiency of preparing meaningful reports from this information will depend upon: a) The amount of information available b) Your skills and experience c) The complexity of the reports d) The amount and quality of computer support available, if any. A COMMUNICATIONS PROCESS. Management information relating to service activities provides the basis for performance measurement on the profitability of the service functions and on individuals responsible for the service. Performance information allows you to examine specific service activities for volume, growth and profitability and provides the basis for constructive communications between you and your service personnel. One of the most important communications links, though, is between you and your accountant. Up to date information on service sales, mixes and performance can be of immense help to accounting professionals in assist- ing you with the development of service strategies as well as for providing financial information for tax reporting. A MANAGEMENT DISCIPLINE. Since proper operation of any inventory or services process requires a dedication to data collection, processing and reporting, a useful management discipline can be developed to support the system. This discipline will help to add consistency and stability to the management of your business. Also, your total time and effort applied to services management will usually reduce due to increasing knowledge and experience. A COST CONTROL SYSTEM. Since service activities may make up all, or a significant part of your business, visibility of service performance is important for financial control. Even though there is no inventory value associated to services, the labor cost applied to a service may represent the most significant operating cost to your business. [7-2] The management of labor costs should be recognized as one of the most important processes effecting your financial performance. Fast and effective management information relating to sales and costs of service can be a significant contributor to improving the cash position of your company, if used to its full extent. For instance, identifying and positioning into services with higher profit margins and backing out of unprofitable services can produce significant profit swings and an improved cash position. THE B.E.S.T. BUSINESS MANAGEMENT SERVICE SYSTEM - B.E.S.T. Business Management provides the most flexible service manage- ment capability, without a significant capital outlay. The B.E.S.T. Service Management system encompasses a full range of service management features normally associated with systems costing much more than the entire B.E.S.T. Business Management system. The Service Management system will support almost any service activity as well as rental operations. Rental activities would manage sales from the Service Management system and maintain the rented item as an asset in the inventory management system. Extensive reports can be generated quickly from pre-designed standard reports as well as from custom reports with almost infinite variations designed right on the screen. The reporting capability includes: - Many pre-designed (standard) reports which are ready to use for many regular information needs Price lists (rates time units) Month-to-date sales Quarter-to-date sales Year-to-date sales Cross reference lists Interface checks - Custom reports you design yourself and store for future use [7-3] This extensive reporting capability will immediately turn your service system into an important management information source. HOW CAN THE B.E.S.T. SERVICE SYSTEM BENEFIT YOUR BUSINESS? - A number of important benefits can be realized from the use of the B.E.S.T. Service Management system. Many of those benefits can have a long-term impact on company performance and help improve day-to-day operations. Some of these benefits are discussed below. IMPROVED SERVICE STRATEGY DEVELOPMENT. The availability of accurate historical information on specific services or service groups allows more effective analysis and decision making regarding the type, amount and timing of service introductions OR reductions. For example, historical information may help you to determine levels, types and timing of seasonal service requirements. Another way service strategies may be established is through service category or individual personnel performance analysis. Sales and profitability information can be extracted from the services data base to compare performance between individuals or service categories. Weak and strong performers can be identified to allow re-direction of workloads and job types to make better use of available personnel. IMPROVED SERVICE PERFORMANCE MEASURES. The speed and efficiency provided by the B.E.S.T. system allows you to establish and track service performance in ways not possible, either manually, or with most Personal Computer service systems. For instance, extensive historical information can be quickly analyzed to establish cost vs. sales as a basis for setting performance objectives. Similar information can then be monitored on a regular basis to test for improvement. And establishing service performance measures, then testing for actual performance against them will provide a basis for profit planning. For example, management information available from the system can help to determine future profitability patterns when you wish to move toward a mix of services with higher profit margins. [7-4] IMPROVED SERVICE TRACKING. Service Management will improve your ability to track individual services and groups of services since the initial purpose of the system is to collect and report on price, cost, quantities, etc. The computer merely replaces your manual process and increases the speed and accuracy of information re-call and reporting. IMPROVED CUSTOMER SERVICE. The Service Management system provides professional quality customer invoicing, which can firm-up business relationships with your customers. Information on customer accounts is available quickly and easily from the Accounts Receivable section after invoicing from the services areas. Fast and accurate response to customer inquiries can be supported with information available in the customer accounts. Fast and accurate response to service questions will contribute to increased sales and help to build a larger customer base since customers tend to migrate to businesses where they receive the best over-all service. The following sections will cover the operating processes needed to become effective with the service management system. [7-5] SERVICE MANAGEMENT SYSTEM MENU This section provides a brief overview of the major functions available from the Service Management menu selections. ------------------------------------------------------------------------------ MOST SERVICE MANAGEMENT ENTRIES WILL BE PERFORMED AUTOMATICALLY FROM THE INVOICING PROCESS AND PAYMENTS. SERVICE MANAGEMENT CAN BE USED INDEPENDENTLY, IF DESIRED. ------------------------------------------------------------------------------ The Service Management menu (Diagram #7-1) is accessed from the [SERVICE] selection on the Main Menu. A brief overview of each of the selections in the Service Management menu is provided below. {Diagram #7-1} ADD NEW SERVICES - This selection is used only for entering new services into the Service Management system. All information required to establish individual services is entered in this section. [7-6] EDIT EXISTING SERVICES - The edit selection is used to enter all changes to service information after a service has been created in [ADD NEW SERVICES]. SET UP SERVICE GROUPS - This section is used to create categories of services. Services are grouped into categories to simplify the handling of interfaces to the General Ledger and to provide more flexible service reporting. REPORT WRITER - The Report Writer is used to prepare report formats from information contained in Service Management. The types of information you want on the report are selected from a list of 12 different service performance factors. The performance factors can be listed and sorted in any order. Limits are placed on the selected list of factors to produce a report for all services in the system or a selected group of services, defined by the factors and limits. Report formats are saved for future use. REPORTS - The reports section is used to recall the CUSTOM report formats which were developed by the REPORT WRITER and to access several PRE-DESIGNED reports which are ready to use. The report formats can be used with different limits to produce an almost endless variety of service performance reports. CLEAR TO-DATE AMOUNTS - This section is used to clear the month-to-date, quarter-to-date and year-to-date accumulations of service units and sales amounts. SYSTEM MENU - This section is used to RETURN to the B.E.S.T. Business Management system main menu after completing Service Management activities. Each of the selections on the Service Management menu are covered in detail in the following sections using examples and illustrations whenever possible. [7-7] ESTABLISHING SERVICE GROUPS Service groups are categories of services with similar characteristics. For example, a video store may have categories of services made up of video recorders repair, television repair, and radio repair. The video business owner or manager may find it useful to manage groups of services such as these, as well as services by individual. Service groups are used in Service Management to improve Service Management reporting and analysis and to assist with the integration process. Each service is assigned to a service group at the time the service is established in the services data base. The S/G number is used for report- ing by service group and for General Ledger accounting transfers. This section will illustrate the process for establishing service groups and assigning individual services to service groups. {Diagram #7-2} [7-8] The Service Group set up process is accessed from the [SET UP SERVICE GROUPS] selection on the Service Management menu in Diagram #7-2. The [SET UP SERVICE GROUPS] key will produce the Service Groups screen in Diagram #7-3. The Service Group (SG) screen is used for all service group set ups. {Diagram #7-3} SERVICE GROUP NUMBERS - The first entry in the Service Group screen is the Service Group number. The SG number is can be any number from one (1) to 99, any two letters from A to Z or any combination of numbers and letters. The SG number is a code to tie categories of services together. DESCRIPTION - The description is any alphanumeric information which is meaningful to you for naming the Service Group. The Description can be selected in the reporting process to name SG's, if desired. [7-9] GENERAL LEDGER ACCOUNTS - The two (2) entries on the right side of the SG screen (Diagram #7-3) are for General Ledger accounts used in the automated transaction process. The account number assignments set up transfer destinations in the General Ledger for all transactions affected by specific business function (i.e., an invoice). A typical activity affecting services, such as an invoice, will automatically make entries into the appropriate General Ledger Transaction files for each of the G/L accounts in Diagram #7-3. SALES ACCOUNT. The 'Sale' field is the G/L revenue account for all services in the Service Group. This account will automatically be CREDITED during invoicing. SALES RETURNS ACCOUNT. The Sales Returns account (S/R) is used for reducing sales amounts from a prior sale. This account will collect all return amounts for the Service Group, effectively reducing total sales by the amount of the returns. This account will be automatically DEBITED during a Sales Return Business Function. The Service Group screen can be used to create as many service groups as necessary. An example of Service Group assignment is shown in Diagram #7-4. [7-10] {Diagram #7-4} The [SAVE] key must be used to store the Service Group setup information in Diagram #7-4. The [DONE] key will return you to the Service Management main menu. PRINTING SERVICE GROUP LISTINGS - Listings of the Service Group information contained in the Service Group screen can be printed for auditing the data or to create an off-line reference. The [PRINT] key in Diagram #7-4 is used to list the Service Group setup information to the printer. [7-11] ENTERING AND MANAGING SERVICE INFORMATION This section provides a detailed description of the Service Management editing function. The editing functions are used to add new services and to make changes directly to existing services. There will be little need for direct entries to Service Management when using Business Functions, since all day-to-day service management is auto- mated. Most information will be entered into Service Management from Business Functions such as Receiving and Invoicing. ADDING NEW SERVICES - Individual services are established in Service Management through the [ADD NEW SERVICES] selection on the Service Management menu in Diagram #7-5. The [ADD NEW SERVICES] key will produce the new services entry screen in Diagram #7-6. The Add New Services screen is used for entering services into Service Management for the first time, only. All future changes to a service are made through the [EDIT EXISTING SERVICES] selection. {Diagram #7-5} [7-12] The New Services screen in Diagram #7-6 has been filled in with information for a typical service as shown in Diagram #7-7. Input screens always appear with the cursor on the Service Number, ready for entering data. {Diagram #7-6} UNDERLINED fields are inputs from the keyboard or from Business Functions. All underlined fields should be entered when you establish a new service to assure proper record updating of to-date information on Quantity Sold and Sales amounts. Fields WITHOUT underlines are calculated by the system. Calculated fields CANNOT be entered from the keyboard. Individual information fields will be explained below. [7-13] {Diagram #7-7} The 'Service #' can be any 12 digit alphanumeric reference number you wish to use to track individual services. Services will be stored in Service Number order for screen look-up. The 'Desc' is any 25 character alphanumeric name you wish to use to describe the service activity. 'Service Group' is the assigned Service Group code. The Service Group code must be included on this screen AND in the Product Group setup section for proper integration with the General Ledger and for service reporting by service group. The 'Person' field is the name of a specific person assigned to provide the service. This field can be used to track sales activity by individual or can be left blank for collecting sales information for all persons associated with the service activity. 'Rate' is the cost of a unit of service. For example, television repairs might be charged at a Rate of $20.00 per hour. Rate can be any whole number and/or any decimal fraction such as $12.125. [7-14] 'Unit of Measure' is any two (2) characters representing a meaningful unit of measure for your services such as HR for hour, OV for office visit, etc. This field is for information only since no calculations are made on unit of measure. The to-date figures in the lower-left section of the screen are month-to-date, quarter-to-date and year-to-date accumulated unit sales and dollar sales. You may wish to enter the to-date figures when the service is initially established. If no to-date figures are entered, accumulations will start from zero (0). Once accumulated amounts are established, up-dates will be maintained automatically from Business Function activities. New service entries MUST be saved with the [SAVE] key before continuing to the next new service. The [DONE] key will return you to the Service Management menu when all new services have been entered. EDITING EXISTING SERVICES - Once a service has been entered in the New Service entry section, it can be re-called for changes or corrections through the [EDIT EXISTING SERVICES] selection on the Service Management menu (Diagram #7-5). The Edit Services screen in Diagram #7-8 is called from the [EDIT EXISTING SERVICES] key. The Edit screen is similar to the new service entry screen except that you have access to all services with the keys at the bottom of the screen. The Edit screen is used for CORRECTING information on existing services. It is NOT used to make daily changes to to-date figures. The first service in the file (in Service Number order) will be called to the screen when activating the [EDIT EXISTING SERVICES] key on the Service Management menu. Specific services are located with the screen keys at the bottom of the screen using the Service Number (FIND) or the Description (SEARCH). Services can be scanned by Service Number using the scan keys. [7-15] {Diagram #7-8} The cursor will automatically locate on the last data position used on the current screen when locating another service. For example, if you have just changed the Rate of one service, the cursor will be positioned on the Rate field for the next service you re-call. This cursor positioning process improves the speed and convenience of data editing by keeping the cursor focused on one element such as the Rate for a series of rate adjustments. The Edit screen allows changes to be made in any UNDERLINED field, just as in the new services input screen. Any changes made directly to the Edit screen should be made with caution, since the accounting system is automatically maintained from Business Functions. DELETING SERVICES - It is important to use the delete process with caution since a deleted service CANNOT be recovered. If a service has been deleted during the year, accumulations on reports before the deletion will contain a different mix of services than reports printed after the deletion. Those reporting differences may be misleading for to-date performance reporting. [7-16] The service to be deleted can be called to the screen for review by Service Number (FIND), by Description (SEARCH) or by scanning. When you are sure the correct service to be deleted is shown on the screen, the [DELETE] key (Diagram #7-9) will present the warning screen in Diagram #7-10 before completing the delete process. {Diagram #7-9} [7-17] Activating the [DELETE] key on Diagram #7-10 will delete the service from the file and return you to an active service on the Edit Services screen. Continue the process until a necessary services have been deleted. {Diagram #7-10} [7-18] PREPARING CUSTOM SERVICE REPORTS The Reports section of Service Management processes contains the custom reporting and standard reporting. This section describes the Report Writer which is used to prepare and store the custom reports used in the Reports section. The custom Report Writer is a powerful and easy to use process for creating customized service related reports to suit many special management infor- mation needs. Report content is selected from any combination of twelve (12) different service performance features. Sorting order and 'limit fields' are established and the report format is saved for future use. This process is discussed on the following pages. {Diagram #7-11} [7-19] The Report Writer is accessed from the [REPORT WRITER] selection on the Service Management menu in Diagram #7-11. The [REPORT WRITER] key will produce the Service Report Writer menu in Diagram #7-12. {Diagram #7-12} CREATING A NEW CUSTOM REPORT - New custom reports are produced from the [CREATE A NEW REPORT] selection on the Report Writer menu. The [CREATE A NEW REPORT] key will produce the service feature selection screen in Diagram #7-13. This screen is used to select the required information fields for printing, sorting and limiting. [7-20] {Diagram #7-13} An individual report can use any combination of service information fields up to a total of 80 characters. A character counter (Report Width) is place below fields to aid in the design of the report. The counter shows the accumulated number of characters selected. The automatic character accumulation control assures that all reports can use 8 1/2 X 11 in. paper and be printed with an 80 column printer. [7-21] {Diagram #7-14} ------------------------------------------------------------------------------ THE REPORTING SYSTEM WILL NOT ALLOW MORE THAN 80 CHARACTERS PER LINE FOR ANY SINGLE REPORT. ------------------------------------------------------------------------------ REPORT TITLE. The report can use any combination of 25 or fewer characters. The title will appear on the Custom Report Edit menu and on the Custom Report Print menu in exactly the same form as it is stated here. It should be given a name which is descriptive enough to locate it easily on those menus. SELECTING REPORTING FIELDS. The 'Print Fields' are the INFORMATION FIELDS you wish to include on the printed report. The fields will be printed on the finished report (from left to right) in the order in which you select them in this section. From one (1) to ten (10) fields may be selected on a single report, depending on available printing space. DETERMINING LIMITS FOR SELECTION. Since most management questions involve specific issues, a management report should include only the information needed to answer a specific question. For this reason, the Service reporting process provides a feature to limit the information [7-22] contained in a report. A minimum and maximum reporting range for a field is selected from any segment of the available data, resulting in a smaller, more precise report. For example, a report including only a single Service Group can be developed using the Limit Fields. Service Group (#3) is selected as a Limit Field (Diagram #7-14). When the report is requested in the Reports section, Service Group will be presented as an input field for you to select the range of Service Group to include in the final report. A single Service Group, a series of Service Groups or all Service Groups can be selected at that time. Up to five (5) fields can be used for setting limits on each report. The Limit Fields can be different from the Print Fields and Sort Fields. SELECTING FIELDS FOR SORTING. A report needs to include the right information to be useful AND the information needs to be listed in an order that can be quickly understood. Sorting of the information fields can be done in a pre-described order to make the report more readable and more meaningful. Sorting can be done on one (1), two (2) or three (3) fields by entering the service feature numbers in the two digit entry Sort Fields. The report will be sorted in the order of those entries. The first field selected will be sorted first. The next sorting will be by the second field selected, within the first field, etc. For example, if you chose to sort by Service Group and Service Number, the report would be printed in Service Group order with services sorted within Service Groups. Sorting can also be requested in ascending (A) or descending (D) order for each selected Sort Field. An 'A' or a 'D' is entered in the single character entry field behind each Sort Field. If alphabetical names are used in a sorted field, an ascending sort would print the names from A to Z. A descending sort would print the names from Z to A. If numeric fields use an ascending sort, the listing will be printed from the lowest to the highest numbers. Descending numeric sorts will print from the highest to the lowest numbers. [7-23] The report MUST be stored with the [SAVE] key when you have completed format design to allow the report to be printed in the [REPORT] section. An example of this report is included at the end of the Custom Reports. EDITING AN EXISTING REPORT - A custom report which has been developed and saved can be re-called for editing with the [EDIT EXISTING REPORT] key on the Report Writer menu (Diagram #7-12). The [EDIT EXISTING REPORT] key will produce a menu listing all existing custom reports (Diagram #7-15). Any of the listed reports can be re-called with the mouse and arrow as with any menu item. {Diagram #7-15} [7-24] The Edit Service Report screen in Diagram #7-16 will be presented when the screen key for the selected report is activated. This screen is the same as the screen which was used to create the report. Changes can be made to the report format the same as with a new report. {Diagram #7-16} The report screen MUST be re-saved using the [SAVE] key or the changes will be lost. DELETING AN OLD REPORT - Unwanted report formats can be deleted from the reporting system with the [DELETE AN OLD REPORT] selection on the Report Writer menu (Diagram #7-12). [7-25] {Diagram #7-17} The [DELETE AN EXISTING REPORT] key will present the list of existing reports in Diagram #7-17. Selecting a report from the list will bring up a warning screen (Diagram #7-18) before deleting occurs. The [DELETE] key will complete the process. {Diagram #7-18} [7-26] PRINTING SERVICE REPORTS The REPORTS section of Service Management is used for producing printed paper reports from service data. Custom reports which were designed with the Report Writer AND a selection of PRE-DESIGNED or standard reports are available. The printer must be turned on, with paper loaded and correctly positioned. The print head should be placed about one line below the top edge of the paper for the first report. The paper will maintain this position for the remaining pages and reports. {Diagram #7-19} The Reports section is accessed through the [REPORT] selection on the Service Management menu (Diagram #7-19). The [REPORT] key will produce the Service Reports screen in Diagram #7-20. [7-27] {Diagram #7-20} STANDARD REPORTS - These reports have been developed to handle a number of on-going reporting needs and to give you a quick start with service reporting. This group of reports should prove to be useful and easy to use on a regular basis for service management. Variations of these reports can also be produced quickly in the CUSTOM report section, if desired. The pre-designed reports are accessed from the [STANDARD REPORTS] selection on the Service Reports screen in Diagram #7-20. The [STANDARD REPORTS] selection will produce the list of standard reports in Diagram #7-21. When a report (Price List) is selected from this list, another screen will present a set of two or more limiting entries (Diagram #7-22). These entries can be used to restrict the report to a very selective group of services or they may be left empty to include all services in the Service Management system. [7-28] {Diagram #7-21} In our example, we will limit our report to Service Group 30 (television repair) by entering 30 in the From AND To fields. {Diagram #7-22} [7-29] After all limit fields have been completed, the [PRINT] key will begin the printing process. A message screen will be presented as a reminder to prepare the printer. A second [PRINT] key will start the printer. {Diagram #7-23} {Diagram #7-24} [7-30] ---------------------------------------------------------------------------- 14-JUN-86 ADVANCED HOME ELECTRONICS Page 1 CROSS REFERENCE ---------------------------------------------------------------------------- DESCRIPTION PERSON SERV # SG -------------------------- ----------- ------- -- VCR RENTAL MACHINE #1 2001 30 VIDEO RECORDER REPAIR BONNIE 1002 10 VIDEO RECORDER REPAIR LARRY 1001 10 REPORT INCLUDES 3 SERVICES [7-31] CUSTOM REPORTS - Custom reports are printed from the Service Reports menu in Diagram #7-25. The [CUSTOM REPORTS] key will produce a list of existing Custom Reports as shown in Diagram #7-26. From this point, Custom Reports are printed in the same manner as Standard Reports. {Diagram #7-25} All Standard reports are accessed in the same manner as the example report. [7-32] {Diagram #7-26} A sample report is included on the following page. [7-33] ---------------------------------------------------------------------------- 14-JUN-86 ADVANCED HOME ELECTRONICS Page 1 SERVICE LISTING ---------------------------------------------------------------------------- PERSON DESCRIPTION SERV # RATE ---------- ---------------------- ------------ ----------- LARRY VIDEO RECORDER REPAIR 1001 25.50 BONNIE VIDEO RECORDER REPAIR 1002 29.25 MACHINE #1 VCR RENTAL 2001 7.50 REPORT INCLUDES 3 SERVICES [7-34] SYSTEM INTERFACE TEST REPORT - This report is used testing the interface accounts when the Service Management system is integrated with Order Processing, Invoicing, Accounts Receivable and the General Ledger. The report will test each service for a valid Service Group and all Service Groups for valid General Ledger and Accounts Receivable accounts. These accounts MUST be available for automatic transactions to be generated correctly from Business Functions. The Service Management Interface Report will list each account with an interface error and indicate the fix required to correct the problem. The report is accessed from the Standard Reports section. The [INTERFACE CHECK] selection on the Standard Service Reports menu in Diagram #7-27 will produce a Standard Report with no Limit Fields. {Diagram #7-27} [7-35] Any errors identified by the report should be corrected immediately. Another Interface Report will verify your corrections. {Diagram #7-28} The [PRINT] key on Diagram #7-28 will start the printer. An example Interface Report is included on the following page. [7-36] ---------------------------------------------------------------------------- 14-JUN-86 ADVANCED HOME ELECTRONICS Page 1 SERVICE INTERFACE REPORT ---------------------------------------------------------------------------- SG: 10 VIDEO RECORDER REPAIR [3333] INVALID SALES RETURNS ACCOUNT SG: 30 EQUIPMENT RENTAL [4444] INVALID SALES ACCOUNT 2 ERRORS [7-37] CLEARING TO-DATE FIELDS The 'To-Date' amounts for Sales and Units of sales for each service should be cleared regularly. This section describes the to-date clearing process for services items. The 'MTD', 'QTD' and 'YTD' amounts should be cleared at the end of each accumulation period. For instance, 'MTD' amounts should be cleared at the end of each month to begin new accumulations for the next month. Similarly, 'QTD' amounts must be cleared at the end of each quarter to begin new accumulations for the next quarter. 'YTD' amounts are cleared at the end of each year. The clearing process is accessed from the [CLEAR TO-DATE AMOUNTS] selection on the Service Management menu in Diagram #7-29. The [CLEAR TO-DATE AMOUNTS] key will present the short menu in Diagram #7-30 where each of the 'To-Date' fields may be selected. {Diagram #7-29} [7-38] ------------------------------------------------------------------------------ 'TO-DATE' AMOUNTS FOR ALL SERVICES WILL BE CLEARED WITH THIS PROCESS. CLEARING 'TO-DATE' FIELDS FOR INDIVIDUAL SERVICES MUST BE DONE FROM SERVICE SCREENS, IF REQUIRED. ------------------------------------------------------------------------------ {Diagram #7-30} [7-39] Each of the 'To-Date' keys in Diagram #7-30 will present a warning screen (Diagram #7-31) before clearing can begin. The [OK] key will begin the clearing process. The [CANCEL] key will return you to the Service Management menu before clearing can begin. {Diagram #7-31} [7-40] ADDING NEW PURCHASE ORDERS Purchase orders are used as order documentation for the purchase of goods from suppliers. This section describes the process for preparing, changing, printing and posting purchase orders. Purchase orders are developed on the screen and stored to the data disk for late printing and posting of the accounting data to the General Ledger. The stored purchase orders may be re-called for editing until they have been posted. ADDING NEW PURCHASE ORDERS - The Purchase Order process is accessed from the [PURCHASE ORDERS] selection on the Business Functions menu in Diagram #8-1. The [PURCHASE ORDERS] selection will produce the Purchasing menu in Diagram #8-2. {Diagram #8-1} [8-1] {Diagram #8-2} The [ADD PURCHASE ORDERS] key on the Purchasing menu will produce the Add New Purchase Orders screen in Diagram #8-3. This screen contains the vendor address(s) and all necessary for printing and recording the purchase order. The order entry screen in Diagram #8-3 include the name and address of your company when the screen first appears. The vendor address and terms of sale are produced by entering the Vendor #. [8-2] {Diagram #8-3} Specific inventory item ordering information is entered from the Inventory screen shown in Diagram #8-4. This screen is accessed by the left or right arrows at the top of the screen. In the example Inventory screen, an inventory item has been entered (Part # 1610) which has produced the Description and Cost from the inventory data base. The quantity (Qty) has been entered to produce the Total inventory order cost in the lower-right corner of the screen. [8-3] {Diagram #8-4} The arrows at the top of the screen will return you to the Summary screen after you have completed all inventory item entries. Diagram #8-5 illustrates the completed purchase order summary screen. The 'Req Date' is entered to provide the vendor with a delivery date. The 'Buyer' field is used to enter the name of your buyer or another individual who is responsible for the order. The 'Conf To' field is used to instruct your vendor to confirm the receipt of the order and to advise you on progress or problems. [8-4] {Diagram #8-5} The 'Freight' field indicates who and/or how shipping is to be paid. 'Ship Via' informs the vendor of your desired shipping method. The 'F.O.B.' field indicated the location where you begin to pay for shipping charges. The 'Remarks' field is an open entry area to enter any notes which way be useful to include on the order. The 'Terms' field is automatically produced from the terms assignment contained in the vendor account in Accounts Payable. The 'Taxable' field is used to include or exclude sales taxes from your purchase order. A 'Y' will include sales tax on the purchase order. An 'N' will consider the order to be non-taxable. An 'N' is initially entered automatically in the 'Printed' field to indicate that the purchase order has not yet been printed. Once the purchase order is printed, this field will automatically changed to a 'Y'. You may over-ride this entry if you need to make a copy of a purchase order which has already been printed. The [SAVE] key will save the finished purchase order to the data disk when you are completed. [8-5] EDITING EXISTING PURCHASE REPORTS - Any purchase order which has been stored to the data disk, in any form of completion, can be re-called to enter and save changes. The [EDIT PURCHASE ORDERS] key on the Purchasing menu in Diagram #8-2 produces the Edit Purchase Orders screen in Diagram #8-6. The first purchase order, in P.O. # order will be presented to the screen. Use the arrows at the bottom of the screen to move between purchase orders. The Inventory screen in Diagram #8-7 has been called with the arrows at the top of the Edit Purchase Orders screen in Diagram #8-6. The number of items has been reduced to three for a new purchase order total of $285.00. This change will be reflected in the summary screen. Use the [DONE] key on the summary screen to save the changes to the data disk. PRINTING PURCHASE ORDERS - Any purchase order which has been stored but not posted can be printed. The [PRINT PURCHASE ORDERS] key in Diagram #8-2 will produce the Print Purchase Orders screen in Diagram #8-8. This screen is used to select an individual purchase order, a range of purchase orders or purchase orders from specific vendors. The [PRINT] key will begin the printing process and present the printing preparation screen in Diagram #8-9. The [PRINT] key in Diagram #8-9 will begin printing purchase order forms (designed for B.E.S.T., Inc. business forms). A sample purchase order is included at the end of this section. [8-6] {Diagram #8-6} {Diagram #8-7} [8-7] {Diagram #8-8} {Diagram #8-9} [8-8] POSTING PURCHASE ORDERS - Purchase orders may be posted after they have been completed and printed. Since a purchase order contains no General Ledger accounting information (accounting information is produced when the goods are received), the posting process avoids the General Ledger but places an on order quantity on each inventory item in the inventory data base. An on order quantity is also applied to the vendor file. {Diagram #8-10} The posting process is accessed from the [POST PURCHASE ORDERS & CLEAR] key on the Purchasing menu in Diagram #8-2. This key will produce the Post Purchase Orders screen in Diagram #8-10. All purchase orders which have been printed will be posted and cleared from the file by this process. The [OK] key in Diagram #8-10 will begin the posting and clearing process. [8-9] {EXAMPLE PURCHASE ORDER} [8-10] RECEIVING INVOICES This section describes the process for receiving goods into inventory from vendor invoices. Goods may be entered into inventory by line item if your inventory system is prepared, or you may enter gross inventory amounts into the General Ledger and Accounts Payable accounts without entering individual inventory items into the Inventory system. {Diagram #9-1} The [RECEIVING] selection on the Business Functions menu in Diagram #9-1 produces the Receiving menu in Diagram #9-2. The Receiving menu is used to select between receiving goods on an invoice from a vendor and bills from non-inventory vendors (i.e. utilities, telephone). [9-1] {Diagram #9-2} In our example, we will use the [RECEIVE INVOICES] selection to bring up the Receive Invoice screen in Diagram #9-3. This screen is initially empty except for the current date which is automatically used unless you manually enter a different date. [9-2] {Diagram #9-4} The Inventory screen in Diagram #9-4 has been completed by entering the Item #. Entering the item number will complete the Description and Cost fields. Entering the quantity will calculate the total invoice amount (shown in the lower-right corner of the screen). The arrows at the top of the screen will return you to the Receive Invoice screen in Diagram #9-5. This screen now includes the total of the entries on the Inventory screen. [9-4] {Diagram #9-5} The remaining entries have been made into the Receive Invoice screen in Diagram #9-5. The 'Disc Amt' is the dollar amount the vendor has allowed on the initial invoice (not included in the payment terms section). The 'Sales Tax Amt' is a dollar amount for taxes added to the vendor invoice. The 'Ship & Ins' field is a dollar amount for shipping charges added to the invoice by the vendor. The 'Terms' field has been filled from the assigned payment terms in the vendor account in Accounts Payable. The General Ledger accounts shown on the bottom of the screen will be used to update the G/L if the 'Update G/L' field contains a 'Y'. The [POST] key will complete the entry for the receiving activity. [9-5] RECEIVE BILLS This section describes the process for receiving bills into the Accounts Payable system from vendor billings (i.e. telephone bills, utility bills). The [RECEIVE BILLS] selection on the Receiving menu in Diagram #9-2 will produce the Receive Bills screen in Diagram #9-6. This screen is initially empty except for the current date. You may enter a different date from the keyboard. {Diagram #9-6} Entering the Vendor # will recall the vendor name from the vendor file in Accounts Payable. The 'Description' field can be used for entering a memo describing the purpose of the bill. The 'Amount' field is the full amount of the bill. This amount will be posted to the General Ledger and to the vendor account in Accounts Payable. [9-6] The accounts at the bottom of the screen will be used to post the transaction to the General Ledger. These accounts are re-called from the vendor account in Accounts Payable. They can be replaced with alternate account numbers, if required. {Diagram #9-7} Diagram #9-7 is a completed Receive Bills screen. The [POST] key will complete the transaction and post the entries to the General Ledger transaction journals and Accounts Payable. [9-7] PREPARING AND PRINTING CHECKS The Check Writer described in this section is a full service check writing process for paying against accounts in your Accounts Payable system and for preparing one-time checks for miscellaneous payments. The easy to use Check Writer process includes: a) Entering check information b) Saving check information c) Editing existing check information d) Printing checks e) Posting check information to the G/L and Accounts Payable f) Clearing check information from the Check Writer Consistent use of the Check Writer for paying bills and invoices will provide you with cash control and a clean audit trail for most cash activity. ENTERING NEW CHECKS - The Check Writer is accessed from the [CHECK WRITER] key on the Business Function menu. The [CHECK WRITER] key brings up the Check Writer menu in Diagram #10-1. [10-1] {Diagram #10-1} The check entry screen in Diagram #10-2 is produced by the [ENTER NEW CHECKS] key on the Check Writer menu. This screen is partially filled by typing the appropriate vendor number in the 'Vend #' field. Checks to customers (i.e. refunds) may be made by entering a Customer number ('Cust #') instead of a vendor number. Vendor #1001 was typed into the screen in Diagram #10-2 which has automatically produced the vendor name, address, Accounts Payable account number (#2110) and the account Description (ACCOUNTS PAYABLE). The name and address will be used for printing on the check form. Your company name will be imprinted on continuous check forms purchased from B.E.S.T., Inc. [10-2] {Diagram #10-2} The amount of the check is entered in the 'Amt' field and the invoice number (if used) is typed into one of the fields labeled 'Apply To Invoices'. The 'Update G/L (Y/N)' field indicates whether you have selected a stand-alone G/L (N) or an integrated system (Y) in the Setup area. If the 'Y' option has been selected, all Check Writer transactions will be automatically posted to General Ledger transaction journals and payments will be recorded in Accounts Payable vendor accounts (#1001). If the 'N' option has been selected, only the Accounts Payable vendor account will be updated with a $500.00 payment. If the 'N' option is selected AND a vendor account is not used, the check will be written with no transactions to the G/L or Accounts Payable. The checking account number (#1010) appears in the 'Checking (CR)' field. This is the default checking account which will be credited (reduced) by the amount of the check. [10-3] In the example in Diagram #10-2, the Accounts Payable G/L account (#2110) will be debited $500.00 and the checking account (#1010) will be credited $500.00. Also, a payment of $500.00 will be entered into the vendor account (#1001) in Accounts Payable. The payment will be applied to Invoice #10006. The [SAVE] key must be used to save entries for each check. The [DONE] key is used to return to the Check Writer menu. EDITING EXISTING CHECKS - Checks which have been prepared in the [ENTER NEW CHECKS] section above, can be recalled and changed, if necessary, before they are printed. This section describes the check editing capability. The [EDIT EXISTING CHECKS] key on the Check Writer menu in Diagram #10-1 produces the Edit Checks screen in Diagram #10-3. The first existing check (in check number order) will be presented for editing. Other existing checks can be located with the normal Arrow, Find and Search processes. {Diagram #10-3} [10-4] In the example in Diagram #10-4, amounts for the check and for the ACCOUNTS PAYABLE account have been MANUALLY changed from $500.00 to $250.00. The ACCOUNT PAYABLE entry must be changed manually because there may be more than one account on this screen. The system will not know which account you wish to change. Any changes to the check will be saved when you leave the screen with the [DONE] key or when you move to another account with any of account locating keys. The [UNDO] key will restore screen information if it is used before you leave the current screen. PRINTING CHECKS - The check printing process is accessed with the [PRINT CHECKS] key on the Check Writer menu in Diagram #10-1. The [PRINT CHECKS] key produces the Print Checks screen in Diagram #10-4. This screen is used to select the check or checks you wish to print from those checks which you have prepared and stored for later printing. One or more checks may be printed with the use of the 'From check #' and 'To check #' selections. {Diagram #10-4} [10-5] In our example, only check #4003 (Wilson Distributors) will be printed. The [PRINT] key will produce the Print Checks screen in Diagram #10-5. The [PRINT] key in Diagram #10-5 will begin the check printing process. The [CANCEL] key will return you to the check print selection screen in Diagram #10-4. {Diagram #10-5} [10-6] ADVANCED HOME ELECTRONICS No. P.O. BOX 1245 MC MINNVILLE, OREGON 97128 Description -------------------------- WILSON DISTRIBUTORS Partial payment 1254 W. BELL STREET SEATTLE, WASHINGTON 92156 Inv# 10006 ------------------------------------------------------------------------------ No. ADVANCED HOME ELECTRONICS P.O. BOX 1245 MC MINNVILLE, OREGON 97128 Check No. 4112 DATE: AMOUNT: PAY TO THE ORDER OF: 12/15/86 250.00 WILSON DISTRIBUTORS ------------------------- AUTHORIZED SIGNATURE ------------------------------------------------------------------------------ [10-7] POSTING AND CLEARING CHECKS - The [POST CHECKS & CLEAR] key on the Check Writer screen in Diagram #10-1 will produce the Post Checks screen in Diagram #10-6. This screen contains the current date which will be applied to all transactions occurring from checks. If a different date is desired, the current date should be changed to the appropriate posting date. The [POST] key will activate the transaction posting process and clear the Check Writer of all checks and check data. The [CANCEL] key will return you to the Check Writer menu. {Diagram #10-6} [10-8] CREATING AND MANAGING CUSTOMER ORDERS The Order Processing section is part of the combined operations of Order Processing and Invoicing. In Order Processing, a list of products and/or services is generated from a customer request. The customer order is stored on the data disk for shipment at a later date. The customer order is stored in the format which will be used for invoicing. When the order is complete and ready for shipment, it is printed as an invoice. Printed invoice information is automatically posted to the General Ledger, Accounts Receivable, Inventory and Services. This section describes the process of generating customers orders. Customer orders will be created and edited in preparation for invoicing and delivering products and/or services to customers. For the purpose of this manual, we will consider an order to exist until it is printed. The order becomes an invoice at the time it is printed and remains an invoice until it is cleared from the system. ADDING NEW CUSTOMERS - Order Processing is accessed from the Business Functions menu in Diagram #11-1. The [INVOICING & ORDER PROCESSING] selection on the Business Functions menu will produce the Invoicing & Order Processing menu in Diagram #11-2. This menu will be used to access all customer ordering and invoicing activity. [11-1] {Diagram #11-1} {Diagram #11-2} [11-2] The first operation in order processing is to create new customer records if the customer placing the order is not already included in your Accounts Receivable customer file. The sale will be recorded to Accounts Receivable as a credit sale. If the sale is an over-the-counter type of sale on a cash basis, the Point-Of-Sale system could be used for order taking and invoicing. You may create a new customer in the Accounts Receivable system without leaving the order processing activity by selecting the [ADD NEW CUSTOMERS] key on the Invoicing & Order Processing screen in Diagram #11-2. This selection will produce an Add New Customers screen (Diagram #11-3). It is the same screen used in the Accounts Receivable system for entering new customers. {Diagram #11-3} The new customer entry screen is used to enter new customer data as orders occur. If the customer placing the order already exists, this step would not be necessary. The order would be created immediately with customer information recalled from the existing customer file. If the order is being taken by phone, the customer record can be created while the customer is on the line. [11-3] The screen in Diagram #11-3 must be saved with the [SAVE] key when completed. ADDING NEW ORDERS - A customer order is produced from the [ADD NEW INVOICES & ORDERS] selection on the Invoicing & Order Processing menu in Diagram #11-2. The [ADD NEW INVOICES & ORDERS] key will produce the Add New Invoices & Orders entry screen in Diagram #11-4. This screen is used to record customer information, general order information and summary order information. Detailed inventory and services orders are entered on the Inventory and Services screens accessed from the arrows at the top of the screen. {Diagram #11-4} The order entry screen in Diagram #11-4 is initially empty except for the Invoice #, Release Date and General Ledger accounts. The Invoice # is assigned by the system. It is the Next Invoice Number which appears in the main Setup section. If a different sequence of numbers is required, the Setup section will reset the starting sequence number. [11-4] The Release Date is used by the invoicing system to hold orders which are intended to be shipped at a later date. Open orders are maintained in the system until the Release Date clears them for invoicing. Invoices will not print before the Release Date but can be manually released by changing the date during invoice printing. Entering a customer number in the 'Cust #' field will fill in the entry screen with information from the customer file (Diagram #11-4). The 'Bill To' and 'Ship To' fields are printed on the Invoice form. The fields can be changed on the screen, if necessary. The 'Purchase Order #' is the P.O. furnished by the customer. It is entered in this field, if available. The 'Sales Person' is your internal person who is taking the order. The 'Taxable' field is used to include or exclude sales tax on the order. If sales tax is to be charged, the amount of sales tax will be determined from the Sales Tax entry in the Setup section on the main system menu. 'Payment Terms' is produced from the terms assignment in the customer file in Accounts Receivable. Terms other than those terms which are recorded in the customer file may be entered at this time, if desired. The 'Discount Pct' is a percentage which is used to apply a discount to the entire invoice. This entry will produce an invoice discount as a percentage of the total invoiced inventory and service price. The 'Printed (Y/N)' field is initially set to 'N'. The field is converted to 'Y' when the order is printed as an invoice. This field can be reset to 'N' if a reprint of an invoice is needed. The sales fields in the center-right area of the entry screen are the summary amounts for the order. Entries cannot be made directly to these fields except for the 'Ship & Inv' area. These fields are summaries of the detailed inventory and service entries made on the Inventory and Service screens accessed from the arrows at the top of the screen. The total shipping charge for the order is entered in the 'Ship & Inv' field after all detailed inventory requirement are known. [11-5] The General Ledger may be turned on or off from an individual order (not suggested) with the 'Update G/L (Y/N)' entry. This entry would normally be set to 'Y' or 'N' for all orders. The G/L account numbers at the bottom of the screen are assigned from the Accounts Receivable and Setup sections. The A/P account is assigned in the customer account. The G/L and A/R account numbers are assigned as default accounts in the Setup section. The Sales account will only be used if an inventory or a service entry on the Inventory and Services order entry screens contains no sales account. The Inventory screen in Diagram #11-5 is used to record orders of specific inventory items. The Part # is used to recall the Description and price. The quantity of each item is entered in the 'Qty' field. The total amount of the inventory portion of the order will accumulate in the lower-right corner of the screen. Diagram #11-5 illustrates a completed Inventory item order entry screen. {Diagram #11-5} [11-6] The Services screen is used the same as the Inventory order screen. Individual services are entered by Part # which automatically recalls the service Description and Rate. The quantity such as hours is entered in the 'Quantity' field. The total for services accumulates in the lower-right corner of the screen. The arrow at the top of the Service screen will return you to the summary screen. Diagram #11-6 illustrates a completed order summary screen. The customer order must be saved with the [SAVE] key before leaving the screen. {Diagram #11-6} [11-7] EDITING EXISTING ORDERS - Existing customer orders may be recalled for editing with the [EDIT INVOICES & ORDERS] selection on the Invoicing & Order Processing menu in Diagram #11-2. The [EDIT INVOICES & ORDERS] key will present the Edit Invoices & Orders screen in Diagram #11-7. The first order, in Order # sequence, will be presented. Other orders may be located with the normal search keys at the bottom of the screen. {Diagram #11-7} You may enter changes to the order summary screen in Diagram #11-7 or to either the Inventory or Services entry screens (accessed by the arrows at the top of the screen). Any changes to the order will be automatically saved when you exit from the order screen. You must use the [UNDO] key to remove changes (if needed) from the screen before exiting the order. [11-8] UPDATING ORDERS TO INVENTORY AND ACCOUNTS RECEIVABLE - Inventory items in the Inventory system may be committed when customer orders are firm. This section is used to apply the Committed numbers against inventory items. Committing items will remove them from availability. The Orders Updating process also applies On-Order amounts against customer accounts in Accounts Receivable. The Orders Update process is accessed from the [ORDER UPDATE] key on the Invoicing & Order Processing menu in Diagram #11-2. The [ORDER UPDATE] key will produce the Update message screen in Diagram #11-8. The [OK] key will start the update process. {Diagram #11-8} [11-9] PRODUCING AND POSTING INVOICES This section covers the process of printing and posting invoices which are applied to customer accounts in Accounts Receivable and invoices which are produced against cash sales such as may be used in a point-of-sale system. The invoice process is considered to begin after customer orders have been created and saved. A printed order becomes an invoice. PRINTING INVOICES - The Invoicing process is accessed from the [PRINT INVOICES] selection of the Invoicing & Order Processing menu in Diagram #12-1. The [PRINT INVOICES] key will produce the Print Invoices screen in Diagram #12-2. {Diagram #12-1} [12-1] {Diagram #12-2} The Print Invoices screen is used to select an individual invoice or groups of invoices for printing. A release date was assigned to each customer order at the time it was created. The Release Date will be used to restrict invoices from printing with release dates after the release date on the screen. The release date on the order must be on, or before, the release date on the Print Invoice screen before it can be printed. The release date on the screen can be changed to by-pass this feature, if necessary. The 'Include if already printed (Y/N)' field is used to over-ride the control which is placed on all printed invoiced. The print control feature is designed to keep you from printing an invoice more than once without a deliberate action to over-ride it with this field. The 'Invoice From - To' fields are used to select a single invoice by number or a group of invoices between two invoice numbers. All invoices between the From and To invoice numbers will be printed. [12-2] The 'Customer From - To' fields are used to select invoices for an individual customer or a group of customers. All invoices for customers within the From and To invoice numbers will be printed. If the Invoice AND Customer selections are used, only invoices for the specified customers with invoice numbers within the Invoice range will be printed. The [PRINT] key will produce the printer message screen in Diagram #12-3. The [PRINT] key on the message screen will begin the invoice printing process. {Diagram #12-3} An example invoice is shown on the following page. [12-3] ADVANCED HOME ELECTRONICS P.O. BOX 1245 MC MINNVILLE, OREGON 97128 S O JAMES R. WILSON JAMES R. WILSON L 12343 S.W. COMSTOCK 12343 S.W. COMSTOCK D PORTLAND, OREGON PORTLAND, OREGON 97274 97274 T O CUSTOMER NO. 1005 INVOICE NO. 10011 ---------- ------------ ------------------------------------------------------------------------------ DATE PURCHASE ORDER NO. SALES PERSON TERMS ------------------------------------------------------------------------------ O6/15/86 19901 RON 2% DISC 10 NET 30 ------------------------------------------------------------------------------ QUANTITY ITEM NUMBER DESCRIPTION UNIT PRICE EXTENDED PRICE ------------------------------------------------------------------------------ 1 4546 W 13 INCH G.E. TELEVISION 320.00 320.00 1 1610 COMPUTER STAND 129.00 129.00 2.125 1002 VIDEO RECORDER REPAIR 18.25 38.78 INVOICE TOTAL 487.78 ------------------------------------------------------------------------------ [12-4] POSTING INVOICES - Invoices which have been printed are posted to the General Ledger and update Accounts Receivable, Inventory and Services. General Ledger accounts for Inventory, Cost Of Goods, Sales, Sales Taxes and Discounts are automatically updated to the G/L transaction journals. Inventory items included in the invoice will be reduced in the Inventory system by the quantities of each item on the invoice and sales amounts will be added to the To-Date fields for each item. Sales of service activities will be updated in a similar manner. Invoices amounts will also be applied to customer accounts in Accounts Receivable. The posting process is accessed from the [POST INVOICES & ORDERS] selection on the Invoicing & order Processing menu in Diagram #12-1. This key will produce the posting message screen in Diagram #12-4. The Date on the posting message screen is used as the shipping date for the invoice. This date is the current date and must be changed from the keyboard if a different date is needed. The [POST] key will begin the posting process. [12-5] {Diagram #12-4} POINT-OF-SALE-INVOICING - B.E.S.T. Business Management provides the capability for point-of-sale invoicing using the same business forms as regular invoices. You will need to set the invoice forms to a different position than for regular invoices but no other hardware changes need to be made. There is no need to create an order in the point-of-sale system. The invoice is created and printed at the same time with no storage of the data. Posting is completed after the invoice is printed. The point-of-sale invoice process is accessed from the [POINT OF SALE] key on the Invoicing and Order Processing menu in Diagram #12-1. The [POINT OF SALE] key will produce the Point Of Sale Invoicing entry screen in Diagram #12-5. [12-6] {Diagram #12-5} The Invoice # is automatically set by the invoicing system from the Next Invoice # in the Setup section. The current Invoice # can be changed on the screen, if necessary. The Date is the current date which can be changed, if necessary. The 'Sales Person' field is used for recording the name of the person making the sale, if desired. The 'Taxable (Y/N)' field is used to include or exclude sales tax from the invoice. The 'Discount' field is a invoice discount percentage which may be applied toward the total of inventory and service amounts. The summary sales information in the left-center section of the screen is produced from detailed information on the Inventory and Services entry screens. The G/L information at the bottom of the screen is used for a cash based sales approach. Cash receipts from the sale (invoice) will be applied to the 'Cash (DR)' account which has been established on the Interface screen in the Setup section. [12-7] The 'Sales (CR)' account is the default sales account from the Setup section. The default account will not be used if inventory and services have been detailed in the Inventory and Service screens. 'Sales Tax (CR)' is the default account from the Interface screen in Setup. The Inventory and Services entry screens are accessed with the arrows at the top of the screen. These screens are used in the same manner as the Inventory and Services screens in the regular invoice section. Refer to the regular invoice section for addition details. Diagram #12-6 illustrates a completed point of sale summary screen. The summary information has been accumulated from the detailed Inventory and Services screens. {Diagram #12-6} The [PRINT] key will begin the printing process and produce the printer message in Diagram #12-7. The [PRINT] key in Diagram #12-7 will start the printer. [12-8] {Diagram #12-7} The [POST] key in Diagram #12-6 will begin the posting for the sale in the same manner as regular invoice posting. Invoices are not required to be printed but ALL invoices MUST be posted to complete the G/L transactions. [12-9] RECEIVING CUSTOMER PAYMENTS This section of B.E.S.T. Business Management is used for receiving and recording payments from customers. All payments received are automatically posted to the appropriate G/L accounts and payment entries are made to customer accounts in Accounts Receivable. Customer accounts in Accounts Receivable MUST be used for all payments received through this process. {Diagram #13-1} The Receiving Payment activity is accessed from the [RECEIVE CUSTOMER PAYMENTS] key on the Business Function menu in Diagram #13-1. The [RECEIVE CUSTOMER PAYMENTS] key produces the Receive Payments entry screen in Diagram #13-2. [13-1] {Diagram #13-2} The date on the payments entry screen in Diagram #13-2 is the current date. If a different date is required, it will need to be manually entered. The 'Update G/L' field and the default G/L accounts are presented at the bottom of the screen. If you are using an integrated General Ledger, the 'Update G/L' field should use a 'Y'. If a 'Y' selection is used, the transactions created by the payment will be posted to G/L transaction journals and the payment (including discounts, if any) will be entered into customer accounts in Accounts Receivable. If the 'N' selection has been used, you must use customer accounts in Accounts Receivable but the G/L entries will not be posted to G/L transaction journals. Diagram #13-3 illustrates a completed payment entry screen for Customer #1005. The 'Name', open invoice numbers (i.e. 2222) and invoice remaining balances (i.e. 50.00) have been produced from the account after entering the account number (#1005). All invoices with remaining balances are listed below the 'Apply to Invoice #s' entry lines. [13-2] {Diagram #13-3} A single payment amount may be applied to more than one open invoice as shown in Diagram #13-3. The amount of the payment has been entered in the 'Amount' field with the customer check number noted in the 'Check #' field. The payment amount ($550.00) will be applied to Invoice #2222 until the balance of the invoice is paid or until the amount of the payment is consumed. The remaining payment amount ($500.00) is then applied to the next requested invoice (#5555). If no invoice number is requested, the payment amount will be assigned to the oldest invoice and continue to the next oldest, etc. until the payment amount is consumed or until the all invoices are paid. If all invoices have been paid and the total payment amount has not been consumed, the remaining amount will create a CREDIT balance in the customer account. The [POST] key will activate the posting process. All G/L transactions will be posted to G/L transaction journals and payments will be entered into the customer account in Accounts Receivable. The [CANCEL] key will return you to the Customer Payments menu without posting transactions. [13-3] CASH SALES RETURNS This section describes the process for recording cash sales returns of inventory and services. A cash sales return is the return of inventory and/or services by customers who had purchased by cash. Returns of items purchased on credit will be covered in the next section. Examples of cash sales returns will be covered below. {Diagram #14-1} The Sales Returns menu in Diagram #14-1 is produced from the [SALES RETURNS] key on the Business Functions menu. The cash returns process is accessed from the [SALES RETURNS - CASH] key on the Sales Returns menu (Diagram #4-1). The [SALES RETURNS - CASH] key will produce the cash returns screen in Diagram #14-2. [14-1] {Diagram #14-2} The 'Date' field is the current date. If a different date is required, it must be manually entered. The 'Up Date G/L (Y/N)' field is used to select between automatic G/L transaction updates and non-updated G/L transactions. If you choose the update option (Y), all necessary transactions for sales, sales returns, cash, inventory, services and cost of goods will be automatically updated. If you choose the non-update option (N), only the inventory data base will be updated by the entries in this area. Entries for detailed inventory and services returns are normally made with the Inventory Returns and Services Returns screens. Entries to the Inventory and Services screens will update individual items and services. Entries made directly to the summary screen will update the G/L accounts and the customer account but will not adjust individual items and services. [14-2] Individual services and inventory items may be specified on the Service Returns and Inventory Returns screens which are accessed with the arrows at the top of the screen. The Service Return screen (Diagram 14-3) is used for reversing sales of services by individual service. If detailed service returns are not required, the total amount for the return may be entered in the 'Service Returns' field in Diagram #14-2. {Diagram #14-3} The Inventory Returns screen in Diagram #14-4 is used to specify individual inventory items for return. If detailed inventory item returns are not required, the total amount for the return may be entered in the 'Inventory Returns' field in Diagram #14-2. [14-3] {Diagram #14-4} In the example in Diagram #14-4, a Computer Stand is being returned from a customer for $119.00. The 'Description' and 'Price' have been called from the Inventory data base after entering the 'Part #'. The number of units being returned (1) is entered in the 'Qty' field to complete the Inventory Returns screen entry. The arrows at the top of the screen will return you to the summary screen (Diagram #14-5). [14-4] {Diagram #14-5} The customer's name has been entered in the 'Reference' field in Diagram #4-5 for information only. The 'Inventory Returns' field reflects the total of the inventory items entered on the Inventory Returns screen in Diagram #14-4. A refund from cash will be necessary to complete a Cash Return transaction. The cash account assigned in Diagram #14-2 for the 'Cash (CR)' field must be the cash account used to provide the refund. If Petty Cash is used, no further entries need to be made. If a checking account is used for the refund, the check number should be recorded in the 'Ref' field and the check written from the Check Writer WITHOUT updating the G/L or Accounts Receivable. [14-5] CREDIT SALES RETURNS Credit sales returns are returns of inventory and/or services from customers which had been purchased on credit. The customer account in Accounts Receivable contains the original sales information. Credit sales returns is accessed from the 'SALES RETURNS - CREDIT] key on the Sales Returns menu in Diagram #14-1. The [SALES RETURNS - CREDIT] key will produce the Sales Returns - Credit entry screen in Diagram #14-6. {Diagram #14-6} The Credit screen in Diagram #14-6 is similar to the Cash screen in Diagram #14-2 with the exception of the added 'Customer #' and Invoice area on the Credit screen. The 'Customer #' is typed from the keyboard to recall any open customer invoices which will be displayed under the 'Apply to Invoice #s' line. In the example in Diagram #14-6, typing the 'Customer #' (#1005) has produced all open invoices and invoice amounts from the customer file. [14-6] {Diagram #14-7} The Inventory Returns screen in Diagram #14-8 has been completed for the return of an inventory item. The result of the entries to the Inventory return screen is shown in the summary screen in Diagram #14-8. The return has been applied to open Invoice #222 in the amount $119.00. No specification of an invoice number will apply the return amount to the earliest invoice. [14-7] {Diagram #14-8} When you are sure all entries are correct, the [POST] key will activate the transaction posting process. All G/L transactions will be posted to transaction journals, inventory and services files will be updated and a refund will be applied to the customer account. The [CANCEL] key will return you to the Sales Returns menu without completing the transaction update process. [14-8] PURCHASE RETURNS This section describes the process for recording the returns to your vendors, of inventory items which were purchased on credit through Accounts Payable. An Accounts Payable file must contain a vendor account before a Purchase Return can be applied from this section. The General Ledger may, or may not be integrated. {Diagram #15-1} The Purchase Returns process is accessed from the [PURCHASE RETURNS] key on the Business Function menu in Diagram #15-1. The [PURCHASE RETURNS] key will produce the Purchase Returns entry screen in Diagram #15-2. [15-1] {Diagram #15-2} The 'Vendor #' is typed from the keyboard to recall the vendor 'Name' and any open vendor invoices which will be displayed under the 'Apply to Invoice #s' line. In the example in Diagram #15-3, typing the 'Vendor #' (#1001) has produced all open invoices and invoice amounts from the vendor file. [15-2] {Diagram #15-3} The Inventory Returns screen in Diagram #15-4 has been completed for the return of an inventory item. {Diagram #15-4} [15-3] The result of the entries to the Inventory Returns screen is shown in the summary screen in Diagram #15-5. The return has been applied to open Invoice #10006 for the amount #95.00. No specification of an invoice number will apply the return amount to the earliest invoice. {Diagram #15-5} When you are sure all entries are correct, the [POST] key will activate the transaction posting process. All G/L transactions will be posted to transaction journals, the inventory file will be updated and the Accounts Payable vendor account will be reduced by $95.00 (debited). The [CANCEL] key will return you to the Sales Returns menu without completing the transaction update process. [15-4] APPENDIX A: Data Dictionary TERM DESCRIPTION ---- ----------- Account A "bucket" for accumulating additions and subtractions to a single asset, liability, revenue, expense, etc. Account A liability representing an amount owed to a creditor. Payable The amount is not necessarily due or past due. Account An asset representing a claim against a debtor from Receivable sales or services rendered. The amount is not necessarily due or past due. Accumulated The sum of the depreciation charges on an asset Depreciation since it was acquired. Adjusting An entry made to an account because of an Entry improperly recorded entry during the accounting period. Asset A tangible or intangible item of value that has a potential to provide future benefits. Balance The current dollar value of a General Ledger account which is expressed as a Debit or Credit balance. Balance A statement of financial position which shows: Sheet Total Assets = Total Liabilities + Total Equity Capital The owner's equity in a business. Cash Money, negotiable checks and balances in bank demand deposit accounts. Cost of Costs that are expensed because items are sold. Goods Sold Equal to beginning inventory plus purchases minus ending inventory. TERM DESCRIPTION ---- ----------- Credit Records increases in revenue, liability, and owner's equity accounts. Records decreases in expense and asset accounts. Credit Limit The maximum amount of charges to accounts receivable allowed for an individual customer. Current Cash or assets which can be converted to cash, Assets normally within one year. Current A debt or other obligation that must be cleared Liability within one year. Customer Normally, a person or company that purchases on a regular basis where Invoicing may be desired. Debit Records increases in asset and expense accounts. Records decreases in liability, owner's equity and revenue accounts. Delete The permanent elimination of data from a file. Depreciation The process of allocating (writing off) the cost of an asset over the life of the asset. Depreciable life may be shorted than the useful life. Edit Creating, correcting or adjusting account data. Not used for transaction entries. Expense The using of an asset in the process of doing business. File The development of account files on a data Creation disk. TERM DESCRIPTION ---- ----------- Fiscal Year A period of twelve consecutive months chosen by a company to represent a business year. May or may not be a calendar year. General The "journal" used to enter and collect all Journal transactions not covered by special journals such as the cash disbursements journals. General A means of categorizing and collecting data for all Ledger of the financial activities a company may encounter during the (G/L) year. The collection of account data in the ledger contains an equal amount of debits and credits. Gross Profit Net Sales minus Cost of Goods Sold. The profit position before expenses such as rent, utilities, etc. have been applied. Income The excess of revenues over expenses for a period. Income The summary of income and expenses for a period Statement resulting in net income or net loss for the period. Information Information organized to facilitate decision making, System planning, control and reporting. Journal A book or file where financial transactions are recorded as they occur. Journal A recording in a journal which usually includes an Entry explanation of the transaction. The entries contain equal debits and credits. Ledger A book of accounts. Liability Usually, a legal obligation to pay a definite amount at a definite time in return for a current benefit. Margin Excess of selling price over direct cost. TERM DESCRIPTION ---- ----------- Net Income The excess of all revenues for a period over all expenses for the same period. Non-operating Income derived from sources other than the main Income line of the business. Operating Expenses incurred in the course of ordinary Expenses activities of the business. Owner's Assets minus liabilities in a proprietorship; Equity partner's capital accounts in a partnership; paid-in capital plus retained earning of a corporation. Payable An unpaid amount that may or may not be past due. Period-to- An accumulation of sales, costs or units over a date specific period of time. The period of time can be a month, quarter, year or other useful time period. Post To record or copy journal entries to ledger accounts. Receipt The receiving of cash. Receivable Any collectible amount that may or may not be past due. Revenue The cash value of any sale or service rendered. Sales A reduction in sales invoice price, usually due to Discount prompt payment. Transaction Any financial activity that will effect the balance of a Ledger account. APPENDIX B: Keyboard Control Features DATA ENTRY PROTECTION - B.E.S.T. Business Management has a built-in entry protection process to help you avoid most common keyboard entry errors such as: a) Numbers where letters are required. b) Letters where numbers are required. c) Numbers too large to be reasonable for a specific entry. d) Invalid date formats and missing data. No special knowledge is required in this area since the system refuses to accept an inappropriate entry. Experience with B.E.S.T. Business Management will provide the best working knowledge of the protection features. SPECIAL KEYBOARD KEYS - Several features have been included in the B.E.S.T. Business Management system software to provide fast and easy keyboard operation. These features are assigned to special keys shown below. KEY OPERATION --- --------- [BACK SPACE] DELETES character(s) just typed so corrections may be made to the current input. [DEL] Deletes the character under the cursor and shifts the remaining text to the left. [SHIFT]/[SPACE] Erases entire entry field. [SHIFT]/[DEL] INSERTS blank spaces inside of the data entry brackets. [SHIFT]/[--->] Moves the cursor to the RIGHT one CHARACTER at a time without erasing. [SHIFT]/[<---] Moves the cursor to the LEFT one CHARACTER at a time without erasing. KEY OPERATION --- --------- [DOWN ARROW] Moves the cursor DOWN one LINE at a time. [UP ARROW] Moves the cursor Up one LINE at a time. [--->] Moves the cursor one field to the RIGHT. [<---] Moves the cursor one field to the LEFT. APPENDIX C: B.E.S.T. Screen Key Descriptions The screen keys (gadgets) listed below have been designed to shorten your learning time with B.E.S.T. Business Management and to increase your speed of operation after you have mastered the system. You should spend a few minutes to review the use of the screen keys to assure complete knowledge of these special features. {SAVE} Saves the current screen to the disk. {PRINT} Begins printing of the current print request. {DONE} Returns you to the current area menu. {TITLE} Displays a Report Title to allow changes to the Title. {OK} Continues with the current screen process. {DELETE} Deletes the current account, report, etc. Remember that a deleted function cannot be recovered. {CANCEL} Cancels the current operation and returns to the main screen. {UNDO} Deletes current entry data and returns data to the previous condition. {UP ARROW} Scrolls the screen toward the top. {DOWN ARROW} Scrolls the screen toward the bottom. {an arrow pointing Shows the location of the top line on the current to the top line} screen within the total capacity of the file. Also, the mouse can be used to jump to sections of the file quickly by placing the arrow in the area of the barometer where you wish to move. When the mouse button is pressed, the area of the file at the arrow will be presented on the screen. {a page showing right Scans through a screen listed file from front to back, upper corner folded one full screen (page) at a time. inward} {a page showing right Scans through a screen listed file from back to front, upper corner folded one full screen (page) at a time. outward} {up arrow Inserts a new line into a screen listed file at the Down arrow} point where the cursor is positioned. {X} Deletes a line from a screen listed file at the point where the cursor is positioned. {page with a line at Moves to the first account in the file and presents the far left} the account on the screen. {page with a line at Moves to the last account in the file and presents the the far right} account on the screen. {--->} Moves to the next account in the file and presents the account on the screen. {<---} Moves to the previous account in the file and presents the account on the screen. {FIND} Presents a screen for locating accounts by number. {SEARCH} Presents a screen for locating accounts by description. {POST} Posts current screen transactions to General Ledger transaction journals. {<--- --->} Moves to another of the screens WITHIN the current activity (i.e. moving between the Summary, Inventory and Services screens in Sales Returns). APPENDIX D: Interface Relationships BUSINESS FUNCTIONS ACCOUNTING FUNCTIONS ------------------------------------------------------------------------------ G/L A/R A/P Inventory Services ------------------------------------------------------------------------------ Purchasing n/a n/a * o n/a Receiving o n/a * o n/a Order Processing/Invoicing o * n/a o o Check Writing o o o n/a n/a Receive Payments o * n/a n/a n/a Sales Returns o * n/a o o Purchase Returns o n/a * o n/a * Must be interfaced o May be interfaced n/a Interfacing not appropriate NOTES - Cost of Goods cannot be calculated within the G/L if Inventory items have not been entered in the Inventory system. APPENDIX E: Equipment Requirements B.E.S.T. Business Management has been designed to be easy to use, easy to learn to use and trouble-free. Trouble-free operation can be assured, though, only if proper care is taken in the selection and use of appropriate hardware. Specifications for recommended equipment are listed below. Commodore/Amiga Computer - 256k built-in RAM (Random Access Memory) - 256k RAM expansion module - 300k available - Built-in 3 1/2 in. disk drive - Amiga Mouse - 110v 60hz Commodore/Amiga 1080 Color Monitor - High resolution color - Composite video and sound - 110v 60hz Micro Disks - Dual sided, dual density 3 1/2 in. micro disks (Fuji label recommended) - 880k byte storage capacity Printer - 80 columns - Dot matrix and near letter quality print - Alpha-numeric and graphic characters - 110v 60hz - Panasonic 1091 recommended Optional Equipment - A second 3 1/2 in. 880k disk drive - Hard disk drive ALTERNATE EQUIPMENT RECOMMENDATIONS UPON REQUEST ============================================================================ DOCS PROVIDED BY THE PHANTOM AND -+*+-THE SOUTHERN STAR-+*+- for M.A.A.D. ============================================================================