Getting Started and the COMPANY Module

1. Getting Started and the COMPANY Module Slideshow 1 Getting Started and the COMPANY Module Slideshow 1

2. Contents • Sage 50 Integrated System Overview • The Sage 50 Home Window • Enhanced View • Classic View • The Company Module Window • Revising Company Information • To Display Reports • Types of Transactions in the Company Module • Transaction Date • Processing Transactions in the Company Module • Journalizing Transactions in the General Journal • Displaying a Journal Entry • To Store a Recurring Transaction • To Recall a Recurring Transaction • To Remove a Recurring Transaction Entry • Correcting an Entry – Adjust and Reverse Methods • Verifying the Results of Adjusted and Reversed Entries

3. Sage 50 Accounting Overview • Simple, secure and integrated accounting software package to simplifying bookkeeping functions • It consists of different modules that are connected as one united system, with the GENERAL LEDGER as the hub. • Click to continue. Accounts Payable Accounts Receivable General Ledger Projects Inventory & Services Payroll

4. Sage 50 Accounting Overview • When a transaction is entered in one module, all other related modules are updated. • If you enter a sale of merchandise on credit in the Sales Journal of the RECEIVABLES module, • …the ACCOUNT Receivables account is increased, • …and the corresponding client’s record is updated. • Click to continue. Receivables Payables Client Sub-Ledgers Vendor Sub-Ledgers General Ledger Projects Inventory & Services Payroll

5. Sage 50 Accounting Overview • Similarly, when the company pays for a purchase on credit, you would enter the payment in the Payments Journal of the PAYABLES module, • … the vendor’s record is updated, • … and the CASH and ACCOUNTS PAYABLE accounts in the GENERAL LEDGER are updated accordingly. • Click to continue. Receivables Payables Client Sub-Ledgers Vendor Sub-Ledgers General Ledger Projects Inventory & Services Employees & Payroll

6. Financial Statements Sage 50 Overview Integrated System (continued) Financial statements are printed from the General Ledger module. The integrated type of accounting software is commonly used in small-to-medium-size companies, especially when all accounting functions are done in one office. Examples of this type of accounting software are Sage 50 Accounting and QuickBooks. Click to continue. Client Sub-Ledgers Receivables Vendor Sub-Ledgers Payables General Ledger Projects Inventory & Services Employees & Payroll

7. Sage 50 Overview Integrated System (continued) The standard modules in Sage 50 Accounting include: • COMPANY (contains G/L) • Customers & Sales (Receivables) • Vendors & Purchases (Payables) • Employees & Payroll • Inventory & Services • Projects • Banking Study the relationship of the various modules to the COMPANY module and to one another. The features illustrated in the slides that follow apply to all modules. Other special features will be shown in relevant chapters where they can be used to best advantage. Click to continue. Payables Receivables Vendor Sub-Ledgers Client Sub-Ledgers COMPANY Projects Inventory & Services Employees & Payroll Banking

8. Home Window – Enhanced View Sage 50 may be viewed either in Enhanced or Classic View. In Enhanced View, each module has a separate Home window. The text and slideshows will be using Enhanced view. Study and click on Switch to Classic View field (see red box) to continue.

9. Home Window – Classic View In the Classic view, there is quick access to each of the modules. The Orange Symbol below signifies that the particular module is in History mode, and is NOT READY. Study and click to continue.

10. The COMPANY Module Window – Enhanced View The COMPANY Module is the hub of the various modules in Sage 50. Click the numbered items below in chronological sequence for more information on the basic features of the module. Clicknow. Job SitesThis is an icon that allows access to a Sage 50 module used to allocate and accumulate revenues expenses . The name may be changed accordingly, like Projects, Divisions, Territories, etc. This is discussed in the text in Chapter 11. Daily Business Managerallows the user to add memo notes for future reference; e.g., recurring invoices, payments due, reminders regarding customers, etc. Data Managementallows the user to back up or restore a data file. More advanced features are Import and Export Records used to combine different businesses under the same company umbrella.        When you click the arrowhead beside CHART OF ACCOUNTS, you will be able to do the following tasks: When you click GENERAL JOURNAL, a General Journal window appears Where you can enter and post a transaction. You will learn more about using the General Journal later in this slideshow.   ACCOUNTANT’S COPY allows you to create a data file that your accountant can work on. You may enter new transactions to your original company file, then import the new transactions into the Accountant’s copy later. View Account Add Account Modify Account Remove Account

11. The COMPANY Module Window – Enhanced View The COMPANY Module is the hub of the various modules in Sage 50. Click the numbered items below in chronological sequence for more information on the basic features of the module. Clicknow.     The Report Centre allows you to view, print, and/or modify related financial reports. You will be using the Report Centre quite a bit in this course.      SETTINGS allow you to change default settings on Sage 50. FORM DESIGNER allows you to change default settings in various Sage 50 Accounting forms..

12. Revising Company Information You can change/update any of the company information such as address, and phone numbers. To access the company information, in the lower Related Tasks area, click on the Settings icon. Click Settings. In the settings window, from the Company field, Click Information.

13. 1. Select Dates Sample of a Partial Balance Sheet Report 3. Click to continue 2. Select Accounts 3. Click OK button To Display Reports • Display Reports by using the Recent Reports Area. • Click Income Statement under Recent Reports • Another way to display Reports is from the Report Centre icon. Click. • Click on • Select the financial report, then click on the Create button. Every module listed on the left side, has their own set of reports. To display the Standard Balance Sheet, Click Create Button • To display reports from the Home window from the Reports menu. Click. • From Reports menu, move to Financials, move to General Ledger, Click

14. Transaction Date Understanding the Dates in Sage 50 Accounting • Before processing a Transaction it is important to understand the different date options in Sage 50 Accounting. • Transaction Date is the date when a transaction actually occurred, which is usually on or before the Session Date. • 2. Session Date is the date when you are recording transactions (work session) Click. • When you open a company file, • Sage 50 Accounting asks you for the date of the work session. Click. • When you open a journal window, the current session date automatically appears in the Transaction Date field; however, you can change it to an earlier date, which represents the date the transaction occurred.Always use the proper transaction date, as the calculation of sales or purchase discounts, aging of accounts, etc. are based on the Transaction Date, in these examples they are the Invoice date. • Click to continue.

15. Compound Entry Processing Transactions in the General Module Transactions are entered in the General Journal using double-entry accounting. In this method, at least two accounts are entered. Click. …and debit entries should equal credit entries. Click. When there are only two accounts in the entry, it is referred to as a Simple entry. Click. When there are more than two accounts, it is called a Compound entry. Click. Sage 50 Accounting will not allow you to post the transaction unless they balance. Click to continue. Simple Entry Debits = Credits

16. Processing Transactions After you have entered a transaction in any module, it is best to check the resulting journal entry before posting by clicking the Report menu, then click Display General Journal Entry. Click Display General Journal entry. Study the resulting General Journal Entry. Notice where the Comment would appear. (J1) on the dateline represents the journal entry number. Click. After verifying that the entry is correct, then click the POST button (see right). Click. Clicking POST will update the corresponding ledgers and subledgers. Click to continue.

17. Recurring Transactions – Store Recurring When you repeatedly enter a transaction, Sage 50 Accounting allows you to create a copy of the entry and store it for future use. This type of entry is called a Recurring Transaction. This feature not only saves time but also helps minimize keystroking errors. This feature is available in all modules. Click. To store a recurring entry, you prepare the entry in the journal window, check the journal entry to make sure it is correct, then back in the journal window, click on the Store Recurring Transaction button (see arrow) Click Store Recurring Transaction. Name the recurring transaction and set the Frequency at which the transaction occurs. A copy of the entry is saved for the next time you need it. Now you need to Post the entry you have prepared. Click to continue.

18. Recurring Transactions – Recall Recurring & Remove Recurring At a later time, you can recall the stored entry by using the Recall Recurring Transaction button. Click. Select the particular recurring entry from a list of recorded recurring entries. Click to Select Bank Loan Payment Monthly. Study the Recall Recurring window and compare it with the data that is placed into the journal window. You then make necessary changes (check dates, accounts and amounts), and then post. Click. To Remove a Recurring Entry To remove a recurring entry, click on the Recall Recurring Transaction button. From the Recall Recurring window, in the Transaction list, select (highlight) the one to delete and click the Remove button. (see blue circle on right). Click to continue.

19. Correcting an Entry – Adjusting Method • If you have posted a transaction and you realize you have made an error. You can reverse or adjust the entry after it has been posted. To correct the entry you can use either one of two methods: • ADJUST ENTRY method using the • Adjust a previously posted entry icon • - REVERSE ENTRY method using the Reverse entry icon • Click. • Adjust Entry Method • To start using the Adjust Entry method, open the journal window in the module, where the wrong entry had been posted. In this example, it will be the General Journal. Next, click the ADJUST a previously posted entry icon. • Click the Adjust Entry icon. • Set the date(s) range, if necessary. • Click OK. • Study the entry list. Select the entry to adjust. In this example J3 for $2,000.00 will be chosen. • Click Select button to continue.

20. Original Entry appears Correcting an Entry – Adjusting Method The original entry appears in edit mode. You can then make the necessary corrections. In this example the 2,000.00 had to be changed to 3,000.00. Click. Check the journal entry for accuracy. Finally, POST. The Adjust feature is not available in all areas, for example, in the Adjust Inventory journal, you would have to reverse a posted inventory adjustment manually (see chapter 8), and the Remittance entries to payroll authorities (see chapter 7). To confirm that the entry has been adjusted, check the journal entries report. This report will be shown after few more slides. Click to continue.

21. Correcting an Entry – Reversing Method Reverse Entry Method Examples of when you need to Reverse a posted entry are for: duplicate entries, an invoice posted to the wrong customer or vendor (see chapters 2 & 3), an employee’s paycheque (see chapter 7 in the text for instructions). The Reverse feature is not available in all areas, for example, in the Adjust Inventory journal, you would have to reverse a posted inventory adjustment manually (see chapter 8), and the Remittance entries to payroll authorities (see chapter 7). Click. To start using the Reverse Entry method, open the journal window in the module, where the wrong entry had been posted. In this example, it will be the General Journal. Next, click the LOOK up an entry icon. Use either one. Click the LOOKUP icon now. Set the date(s) range, if necessary. Click OK button to continue.

22. Correcting an Entry – Reversing Method Study the entry list. Select the entry to reverse. In this example J6 for $22.46 will be chosen. Click Select button. Once the entry appears in the journal window, click the Reverse Entry icon. Click the Reverse Entry icon. A Confirmation window appears, clicking Yes will reverse the entry, and a blank journal window appears, which means that the entry has been reversed. You can then make a new correct entry, if necessary. The Reverse Entry method creates a reversing entry of the original entry and assigns the next J#, in order to keep a record in the system as a correction, and for an audit trail. To confirm that the entry has been reversed, check the journal entries report. Click to continue.

23. Displaying Corrected Entries To see what Sage 50 Accounting created for your Adjusted and Reversed entries, display the Journal Entries (All) report. Click. From the Home window, under either Recent Reports, or in the Report Centre select All Journal Entries. The same report can be found under the Reports Menu (at top of Home window), Journal Entries, All. Click. In the Modify Report window, place a check  in the Corrections box, to display them, then click OK. If you did not get this window, and you have the Entries Display report instead. Click. Click on the Modify icon, then select Report Options. Place a check in the Corrections box, then OK. Click to continue.

24. Displaying Corrected Entries Study the result for the Adjust entry method. J3 is the original entry; J4 is the reversal; J5 is the correct entry. Study the result for the Reverse entry method. J6 is the original entry; J7 is the reversed entry. Click to continue.

25. When the magnifying glass appears, Clicking 2x on 76.44 displays this account’s General Ledger entries within the dates in this Income statement report. Clicking 2x on the Bank Loan Interest Expense account name, displays this account’s General Ledger. Drilldown Feature – Display Detail Reports In Sage 50 Accounting, you can go deeper into an entry in many reports or parts of financial statements to see more detail. When you move your pointer around a report (without clicking), any time the mouse pointer changes to a magnifying glass with a plus sign in it , you can see more details about the specific item. In the following examples, you will see how the Drilldown feature allows you to view many types of details of the bank loan interest expense account. We will start from an Income Statement report. Click. See note on the right. Click. The account General Ledger window is displayed. Click. See note on the right. Click to continue.

26. Drilldown Feature – Display Detail Reports Clicking 2x on the source for J2 on Bank Debit Memo, will display the journal window where the entry was created. Clicking 2x on J2 under the JE# field, will display the Journal Entry report. General Ledger report appears. Click. See note on right. Click. Journal entry report appears. Click. See note on right. Click. This feature is available in most reports in Sage 50. The Balance sheet, Income statement and Trial Balance reports, will not appear using the Drilldown feature, as they are base reports. Click. The Drilldown feature will not display details on Adjusted or Revered entries, or a Payroll entry. A message appears that “There is no data to report” Click to continue.

27. Sage 50 Features Other Common Features Other Sage 50Accounting features will be illustrated as you do the exercises in the various modules. Go back to your text and proceed from where you have left off. Press ESC now and click the EXIT button to close the slideshow. EXIT