Before using the "Accounting" functionality, the following entities need to be defined/edited:
The accounting schema contains the following information: the accounts used, the calculation method and the currency. SocrateCloud allows you to define multiple accounting schemas in order to obtain multiple types of reports and financial information. Thus, the well known issues involving the conversion of financial results from one system to another and managing multiple organizations with different accounting rules is solved.
The following accounting elements must be considered when defining an accounting schema:
Currency
Account Plan
Costing Method
Costing level
General Accepted Accounting Principles
Transfer Type
For each accounting schema there are parameters that must be defined in order to process accounting transactions (e.g. the error treatment type, open items revaluation method, allowance accounts, discounts between units/subunit, clearing method).
As part of each accounting schema, you need to define the elements are used for GL Journals entries (entered manually or transferred automatically, by processing the primary documents). The Organization and Accounts are mandatory elements. The optional elements include: Business Partner, Product, Project, Campaign, etc.
For example, if Product and Business Partner are elements part of the accounting schema, then the accounting combination may look like this: 01-411-ART1-CLI1, where:
01 - is an organization/ organizational unit, located on a certain level of the organizations hierarchy.
411 - the account (synthetic of degre I, II, etc.)
ART1 - the key of the "COMPUTER001" product
CLI1 - the key of the "IMPEX SRL" business partner
Description displayed for of this accounting combination would look like this: SOC1-Clienți_CALCULATOR001_IMPEX SRL .
SocrateCloud will automatically generate all the accounting transactions (posts) and the elements will be derived from the transferred document or the transaction itself.
For an accounting schema the default accounts used for the system-generated transfers (e.g. posing the vendor invoices) must be defined. These accounts are used as default values for Business Partners, Products, Warehouses, Bank Accounts, Taxes and Cash Journal. All these accounts can be overwritten at individual level, but the default values ensure that all transactions are posted.
For example, if we sell a product, the revenue account that has been associated to said product will be used for the accounting transfer. This ensures that you only have to define the accounts and the accounting rules once, without having to worry about the accounting consequences whenever you enter a new document (which can be done by any user).
Unlike other similar applications, SocrateCloud does not include the calendar in the definition of the accounting schema. The calendar is used only as a means of control over the documents and reports.
The Blocked (Alfa) window, located in the Performance Analysis -> Accounting Rules menu is not used in the current SocrateCloud version.
The GL Budget and Budget Control, located in the Performance Analysis -> Accounting Rules menu, together with "Budget" transfer type can be used to define an organization's budget. The functionality has not yet been implemented.