Sage X3 Core Financials - Day 2 - Ledgers, Companies and Sites Flashcards
Understanding Ledgers,
Companies, & Sites:
In the following lesson, we shall learn how to:
- Define Ledgers,
- The Account Core Model, and
- How to pull up all the information when creating a Company and Site.
TOPICS IN THE LESSON:
1) Understanding Ledgers
2) Working with Multiple Ledgers
3) Defining Account Core Models
4) Creating Companies and Sites.
Understanding Ledgers: (GESLED)
Path: Setup > Organizational Structure > Ledgers
A Ledger is the principle book for recording transactions.
You can have the same or separate Ledgers for tracking transactions and balances associated with the,
General Ledger or,
Analytical Ledger.
- You can define an unlimited number of Ledgers, however you can only associate with an Account Core Model, a maximum of 10 Ledgers.
- An Account Core Model is associated with a specific Company and determines the Ledgers, Chart of Accounts, and Dimensions available.
- You can post a single entry to multiple Ledgers. For example, if you have a General Ledger and Analytical Ledger, you can post to Actual Accounts in the General Ledger and Dimension Values in the Analytical Ledger.
- The benefits of using Multiple Ledgers is to allow for greater Analytical Reporting, conforming to Government Reporting Requirements, tracking different Ledgers at the same time to reduce redundant data entry, etc.
Working with Multiple Ledgers: (GESLED)
Path: Setup > Organizational Structure > Ledgers.
Enterprise Management allows for Multiple Ledgers to be used for Company record keeping.
For example, you may want to record transactions using both Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS). Or you may want to record some transactions using Cash Accounting Methods and others using Accrual Methods.
Benefits of using Multiple Ledgers are:
They allow for greater Analytical Reporting, conforming to Government Reporting Requirements, tracking different Ledgers at the same time to reduce redundant Data entry, etc.
MULTIPLE LEDGERS, USE OF:
- GAAP
- IFRS
- CASH ACCOUNTING
- ACCRUALS ACCOUNTING.
In different Global Jurisdictions, there are Requirements for using a Standard Chart of Accounts that may differ from the Account Structure that you use internally.
- For each of these examples, you would be able to define Multiple Ledgers for a single Company.
- However, you can only have one Ledger defined as a Legal Ledger, (Such as your main Ledger)
- In a Multiple- Ledger environment, transactions can automatically flow from one Ledger to another using mapped accounts and Automatic Journals.
- Note that entry transactions for the General Journals function may need to be configured to reflect the use of Multiple Ledgers.
Thus, in order to work with multiple Ledgers, some areas need to be configured using: (GESLED).
This allows you to define the type of Ledger it is and whether Dimensions are used.
Defining which ledgers are being used for a Company, including Multiple Ledgers: (GESGCM)
Path: Setup > Organizational Structure > Account Core Models > Ledgers.
Mapping and Linking Accounts across Ledgers for transactions entry is done using: (GESGAC).
Path: Setup > Financials > Accounts.
- For each Chart of Accounts used, use the Default Accounts area to map and link Accounts across Ledgers.
Defining a Single Accounting Code for transaction records and automatic Journals across Ledgers we use: (GESCAC)
Path: Setup > Financials > Accounting Interface > Accounting Codes.
- In a Multi-Ledger environment, there will be columns for each Ledger used, allowing you to define General Ledger Accounts.
Defining Account Core Models: (GESGCM)
Path: Setup > Organizational Structure > Account Core Models
The System allows you to manage Companies with Identical or Different Legislations within a single Folder, that may or may not have the same Accounting Organization.
- An Account Core Model, is a structure containing COAs.
- Every Legal Company is associated with an Account Core Model.
- The Account Core Model Identifies:
a) The Ledgers used,
b) Currency in which transactions post to the Ledger,
c) How the Currency rate is determined and calculated when posting in a different Currency.
Creating Companies and Sites: (GESCPY)
Path: Setup > Organizational Structure > Companies
This program is based on Hierarchical Structure with the highest Level being the Folder.
The Structure and Levels:
Top Level or Level 1: FOLDER
Level 2: COMPANY 1 and COMPANY 2
Level 3: COMPANY GROUP
Level 4: SITE 1 for COMPANY 1, and SITE 1 and SITE 2 for COMPANY 2.
Level 5: SITE GROUP
- A single Folder can contain Multiple Companies and the Company Currency can differ from the Folder Currency.
A Single Company can also have Multiple Sites, and the Sites can represent different Locations, Warehouses, etc.
Companies and Sites can be grouped together for Reporting Purposes.
CREATING A COMPANY: (GESCPY)
Setup > Organizational Structure > Companies.
- For each Company, enter a Code with a maximum of 5, Short Description and Description.
- Select the Legal Company check box to indicate the Company is legal according to Specific Accounting guidelines and so that you can be able to post transactions and balances.
- A non-legal Company can only be used for Simulations and Analytical Groupings.
- You can add an Image to use as a logo on Reports. Image file formats: bmp, jpeg, wmf, and gif.
UPDATING AN ACCOUNT PLAN WITH LINKED ACCOUNTS:
- After Defining Sites for a Company, you can define linked Account information for a Specific Account Plan in the COA function.
- This is primarily used when entering Inter-Site transactions and can define such Accounts as the Inter-Site Clearing Account.
Site/Company Group: (GESAGF)
Path: Setup > Organizational Structure > Site/Company Groupings.
- Select the Company Group check box to indicate you are creating a Company Group. If selected, you can not select a Site.
- On the Grouping Tab, the Company and Site Sections are used to select Company or Site you are Assigning to the Group.
NB: You can not select both a Company and a Site, for the same Group.
NB: You can only Group Companies within the same Folder.
SETTING UP TAXES:
This Topic provides a basic understanding of Tax Set up in Sage X3.
TOPICS IN THE LESSON:
- Setting Up Tax Rates,
- Setting Up Tax Determination,
- Setting Up BP Tax Rules,
- Setting Up Tax Levels.
Setting Up Tax Rates: (GESTVT)
Path: Common Data > Common Tables > Tax Rates.
Taxes used for Sales and Purchases are set up in the Tax Rates.
Tax Type: You can Setup Tax Rates for the following Tax Types:
1) VAT > Value Added Tax, based on the ex-tax amount.
2) Additional Tax: Based on the excl-tax Amount, on the quantity or any other item of a Document Line.
3) Special Tax: Based on the excl-tax Amount, on the Quantity or any other item of a Document Line.
4) Local Tax: Regional Tax.
VAT Tax Type: Specify the Invoice Stage at which the Tax must be applied: ie,
- On Debit: Means the Tax is due as soon as the Invoice is sent, which is most common case.
- On Payment: Means the Tax is due after the Invoice Payment. An example of this is Service Provisions.
TAX RULES:
The Tax Rule represents the calculation rules that need to be applied to determine the Tax Amount.
- The Tax Rule is Setup at BP Level.
- The Rule Setup on each Customer and Supplier record is suggested by default for all the transactions involving this BP.
FORMULA: Use when exceptional Tax must be calculated using a basis different from the ex-tax Amount of the Line.
- For example, some countries use Taxes based on Quantities.
- Legal Mention: Compulsory Statements to be printed on the Invoice Footer.
Setting Up Tax Determination: (GESTVC)
Path: Common Data > Common Tables > Taxes > Tax Determination
This function is used to define, by crossing Tax Rules (linked to BPs) and Tax Levels (Linkec to Products), the Tax Code to be used in Sales and Purchases function in order to calculate Taxes to apply in the Document.
Note: In AP/AR Accounting the Tax Rate is taken directly from the General Account.
It can be overriden during Document entry. It can be Modified if the BP has different Tax Rule.
A warning message will appear if it is not consistent, but it will not prevent you from continuing.
AP/AR ACCOUNTING:
General Account (Tax Rate) > Tax Rates.
SALES/PURCHASING:
BP (Tax Rule) + Product Tax > Tax Determination.
- During the creation or Modification of a Document Line, the System browses the various active Rules and Applies the First Rule for which the criteria of application are respected.
- These Rules can be defined by Legislation and or Company Groups.
Use the code: (GESTVC)
- At the top of this Screen, the criteria used to determine the Tax can be specified: ie,
A Tax Determination Code, a Title, an Active Flag, A Company Group, A Tax Type, The Tax Rule of the BP, The Tax Level of the Product and the Legislation at hand.
Tax Types:
- VAT,
- Additional Tax,
- Special Tax,
- Local Tax.
- BP Tax Rule: The Tax Rule determines the Calculation Rule that needs to be applied to determine the Tax Amount.
- The BP will specify the Tax Rule (Domestic, Export EEC, etc)
- Tax Rules are sorted by type of Rule so as to identify the different Modes of operation.
Setting up BP Tax Rules: (GESTVB)
Path: Common Data > Common Tables > Taxes > BP Tax Rule.
The BP Tax Rule (GESTVB) Function is used to define the Tax Rules associated with each BP and thus Calculate Taxes for Sales and Purchases.
- The BP Tax Rule is entered in the Tax Determination Calculation using a BP Tax Rule Record.
- The BP Tax Rule Determines the Calculation Rule that needs to be applied to determine the Tax Amount. The BP will specify the Tax Rule, ie (Domestic, Export EEC, etc)
- The BP Tax Rule is entered in the Customer and Supplier record on the Financial Tab.
Setting Up Tax Levels: (GESTVI)
Path: Common Data > Common Tables > Taxes > Tax Levels.
We use The Tax Level (GESTVI) Function to define the Tax Levels associated with each Product and thus calculate taxes for Sales and Purchases.
- The Product Tax Level is entered in the Tax Determination Calculation using a Tax Level Record.
- It is used to specify the Tax Level ie, (Standard, Reduced, Exempt, and Zero Rated)
- Because each has its own Tax Rates, The Tax Level only does not make it possible to determine the rate to be applied.
- The Tax Level is entered in the Product record on the Financial Tab.
