4.1 Accounting Module

ACCOUNTING MODULE

Accounting is the process of recording and tracking financial statements to see the financial health of an entity.

4.1. Settings

4.1.1. Income Statement Modification

This menu is used to create a row in the income statement and make a formula for that row.

Reports affected:

Balance Sheet Comparison
Balance Sheet Detail
Balance Sheet Summary
Balance Sheet
Statement of Cash Flows
Profit and Loss
Profit and Loss comparison
Profit and Loss year-to-date comparison
Profit and Loss trailing 12 months
Profit and Loss as % of total income

4.1.1.1. Reset Income Statement Modification button

It will delete all data income statement modification and recreate based on the income account list.

4.1.1.2. Apply income statement modifications:

If “Apply income statement modifications” is enabled, active income statement modifications will be displayed in the report. Conversely, inactive income statement revisions will not be displayed in the report.

Conversely, if “Apply income statement modifications” is not enabled, active income statement modifications are also not displayed in the report.

4.1.2.3. Create Income Statement Modification

Step 1. Go to Settings menu under Accounting module from the left sidebar
Step 2. Select the Income Statement Modification menu
Step 3. Select Add button

In the Income Statement Modification popup, fill in the following details:

1. Enter the Name of the income statement row

2. Select a type: Income or Net Income

3. Click to add expression (+, –, *, /) and choose an account

Click to remove an expression.

4.1.2.4. Edit Income Statement Modification

Step 1. Go to Settings menu under Accounting module from the left sidebar
Step 2. Click the Income Statement Modification menu
Step 3. Hover over the row that you wish to edit and click Edit

Step 4. Mark the necessary changes

Step 5. Click Save

4.1.2.5. Delete Income Statement Modification

Step 1. Go to Settings menu under Accounting module from the left sidebar
Step 2. Click the Income Statement Modification menu
Step 3. Hover over the row that you wish to delete and click Delete

Step 4. Confirm to delete

4.1.2. General Setting

Go to the Setting menu under the Accounting module in the left sidebar -> Select the General menu.

Reset Data: used to delete all data related to the Banking, Transactions, Journal Entry, Transfer, Chart of Accounts, Reconcile and Budget menu screens created previously. However, in the Chart of Accounts screen, the system only deletes the manually created data, the default data remains.
Remove invalid entries: In some cases the invoice has been deleted but the invoice amount is still mapped in the accounting module. Remove invalid entries is used to delete mapping lines in the transaction menu for which the relevant transaction no longer exists.
First month of financial year: you can specify any month as the start of your financial year (also called your financial reporting year or accounting year), default is January. A financial year is a period of 12 months and does not necessarily begin at the beginning of the calendar year. It is used for reporting.
First month of tax year is used to select the first month of the tax year. There are 2 options:
(Currently this field is for selection and display only. We will process the transaction in the future)
- Same as financial year: the month starting to calculate the tax is the same as the month of the financial year
- January: Tax calculation starts from January and ends at the end of December
The Accounting method field has two options:
- Accrual: When using the Accrual accounting method, you record income and expenses when you send the invoice or receive the bill. The accrual method in reports:
  - This report counts income and expenses regardless of if the invoice or bill was paid or not.
  - It includes income and expenses even if the money hasn’t changed hands yet
- Cash: When using the Cash accounting method, you record income and expenses at the time you actually receive a payment or pay a bill. The cash method in reports:
  - This report counts income or expenses only once you get a payment or pay a bill.
  - If you sent an invoice or got a bill but the money hasn’t changed hands yet, your report doesn’t include it in your income or expenses.
Close the books is used to close the book. This function helps to ensure that the data entered into the accounting software is correct so that financial statements can be prepared and completed. Reports alert management to how much money is flowing in and out of the business. Management will use the financial statements to analyze the financial aspects of the business and will decide how to improve it.

After turning on Close the books, it will proceed to choose an automatic closing date. Any transactions that occur on this date and before will be protected if we attempt to change. When a transaction occurs on this date or before this date will receive a alert
At Chart of Accounts area:

- If Enable account numbers is enabled: when creating an account in the Chart of account menu, it will allow you to enter a number field.
- If Enable account numbers is disabled: when creating an account in the Chart of account menu, the Number field will not be displayed to enter the account number (account number).
- If you check the Show account number option : Show account number on reports, transactions and chart of account.
- Otherwise, if you do not check the Show account number option: do not display the account number in reports, transactions and chart of account.

4.1.3. Account detail types

Go to the Setting menu under the Accounting module in the left sidebar -> Select the Account detail types menu.

Used to add a detail type that is not available in the system. This detail type is used to create an account.

Reset Account detail types: Delete all detail types in this screen but accounts of this detail type are not deleted.

4.1.3.1. Create account detail type

To add a new account detail type to your organization:

Step 1. Click on the Add button.

Step 2. In the Account detail type popup, fill in the following details:

Select the Account type
Enter the Name
Select the Statement of Cash Flows: used to select where this account type should be displayed in the Statement of Cash Flows report

Cash flows from operating activities (CFO): shows the amount of money the company brings in from business activities such as manufacturing and sales. This is the first part of the Statement of Cash Flows Report
Cash flows from investing activities (CFI): money generated or expensed from investment-related activities such as buying assets and supplies, investing in securities or selling securities or asset.
Cash flows from financing activities (CFF): shows the net cash flows used to finance the company. Financial activities include transactions involving debt, equity, and dividends.
Cash and cash equivalents at beginning of year (CCE): includes cash, bank accounts and marketable securities.

Enter the Description

Step 4. Click Save button

4.1.3.2. Delete account detail type

Cannot delete an account detail type when at least one account related to this detail type exists.

4.1.4. Banking rules

The banking rules page is used to create and manage data for automatic classification of common recurring transactions.

This configuration is for import Posted Bank Transaction by excel feature

4.1.4.1. Create banking rule

To add a new account detail type to your organization:

Step 1. Go to the Setting menu under the Accounting module in the left sidebar -> Select the Banking rules menu.
Step 2. Click on the Add button

Step 3. In the Banking rule page, fill in the following details

1. Enter the Name.

2. Select Apply this to transactions that are: Money in or Money out.

3. Select the and include the following : Any or All.

4. Select the Description or Amount.

5. Select the Contains or Doesn’t Contain or Is exactly.

6. Enter the content in the next box.

7. Select the Then: Assign or Exclude. If you choose Assign, you will continue to select the fields in section 8, 9.

8. Select the Payment account and Deposit to.

9. Enable the Auto-add: Any transaction that meets the conditions of the rule will automatically be mapped to the Payment account and Deposit to preselected in the rule.

For example:

Step 1: there is a rule like the picture

– in there Apply this to transactions that are: Money out

– Two conditions:

+ Description – contains – “Rule 1”,

+ Amount – Is greater than – “5000”

– Payment account: ACB Bank

– Deposit to: Accounts Receivable (A/R)

Step 2: Go to Banking -> Posted Bank Transactions → import excel into ACB Bank account with the file as shown below

Result: only the 2nd line in the file meets the rule and automatically maps to the corresponding accounts

4.1.5. Plaid environment & Setup Your Bank Account

Setup section to connect to Plaid API. First we must have an account on Plaid APi. (https://plaid.com/). This configuration is used for the “Verify account for transaction import” function.

4.1.5.1. Plaid environment:

Live: For actual running, real connection to the bank. This mode requires an account and the Production access step from Plaid API.
Sandbox: mode running on the sandbox environment, will not connect to the real bank and the data will be test data. The key of this mode we will get from the Plaid account.

Sandbox is basically used for development purposes. You have nearly unlimited use of all the Plaid products for free – but you are not going to be touching any real data. All the data you’re reading in will be fake, and you won’t actually be affecting any user data.

Which is probably a good thing while you’re still working out all the bugs in your application.

client_id: This is the identifier of the account on Plaid. We’ll take it from the Plaid account.
Secrets:
- Live: key for live mode
- Sandbox: key for sandbox mode

4.1.5.2. Connecting Plaid API

Step 1. First, you need an account of Plaid API to get the key and fill in the Plaid environment in the system

Link Plaid API

Once you have an account, you will get the key at: Team settings -> Keys

If you want to get the actual data, you have to ask Plaid to let them issue the production key.

Step 2. Once you have the key from the Plaid API, you can connect to the bank. Go to the Banking menu under the Accounting module in the left sidebar -> Select the Setup Your Bank Account menu

Select account(s) to share)

Then select Continue

This page displays transactions imported into the bank account using an excel file (at the Posted Bank Transactions menu) and transactions downloaded from the bank account.

Step 3. Click Import New Bank Transactions to get bank account data

4.1.6. Mapping Setup

Mapping Setup: is used to set up automatic mapping for invoice, payment, credit note, expense, tax; payslip (if the HR Payroll module is activated); purchase order, purchase invoice, purchase payment, order return, refund (if the Purchase module is activated); inventory receiving, inventory delivery, loss & adjustment, opening stock (if the Inventory module is activated); asset, maintenance, depreciation (if the Fixed Equipment module is activated).

4.1.6.1. General

Automatic mapping: is used to set up automatic mapping for invoice, payment, credit note, expense and tax data.

Step 1. Enable/Disable auto mapping
Step 2. Select Payment account and Deposit to

Step 3. Click Save

4.1.6.2. Item mapping setup

Used to set up automapping for some special items. This configuration affects when creating invoices.

Create item mapping setup

Step 1. Go to Settings menu under the Accounting module in the left sidebar -> Select the Mapping setup menu -> Select the General tab
Step 2. Click on the Add button
Step 3. In the Item mapping setup popup, fill in the following details:

Select item
Select Inventory asset account: if the item selected above belongs to inventory receiving, inventory delivery, loss & adjustment will map to this account
Select the Income account: if the item selected above belongs to invoice will map to this account

Step 4. Click on the Save button

4.1.6.3. Payment mode mapping

Step 1. Go to Settings menu under the Accounting module in the left sidebar -> Select the Mapping setup menu -> Select the General tab -> Enable payment mode mapping.
Step 2. Click on the Add button
Step 3. In the Payment mode mapping popup, fill in the following details:

1. Select payment mode

2. Select payment account and deposit to of Sales: select the accounts to map when recording payments from invoice with this payment mode.

3. Select payment account and deposit to of Expenses: select the accounts to map when recording payments in expenses with this payment mode.

4. Select payment account and deposit to of Credit note refund: select accounts to map when recording credit note refund with this payment mode.

Step 4. Click on the Save button

4.1.6.4. Expense category mapping

Step 1. Go to Settings menu under the Accounting module in the left sidebar -> Select the Mapping setup menu -> Select the General tab -> Enable Expense category mapping
Step 2. Click on the Add button
Step 3. In the Expense category mapping setup popup, fill in the following details:

1. Select Expense Category

2. Select Payment account and Deposit to: select the account to map for this expense category

3. Enable/Disable the Preferred the payment method:

If Preferred the payment method is disabled, the expense will map to the expense category.

If Preferred the payment method is enabled, the expense mapping will be prioritized by payment mode

We can select multiple payment methods for this expense category.

Step 4. Click on the Save button

4.1.6.5. Tax mapping setup

Step 1. Go to Settings menu under the Accounting module in the left sidebar -> Select the Mapping setup menu -> Select the General tab
Step 2. Click on the Add button
Step 3. In the Tax mapping setup popup, fill in the following details:

1. Select Tax

2. Select Payment account and Deposit to of Sales: select accounts for special tax mapping in invoices

3. Select Payment account and Deposit to of Expenses : select accounts for special tax mapping in expense

Step 4. Click on the Save button

4.1.6.6. Payslips mapping setup

Payslips will not be mapped automatically. This configuration is used for the Mass Mapping function.

4.1.6.7. Purchase mapping setup

Activate and select the required account for the transaction to automatically map when it is created and approved.

4.1.6.8. Inventory mapping setup