Sage X3 MX3 Bootcamp Core Financials- Day 1 Training Flashcards
OVERVIEW OF THE ACCOUNTING STRUCTURE: LEARNING OUTCOMES:
1) The Àccounting Set up Overview
2) How to Define the Account Plan (Chart of Accounts)
3) How to Create Account Classes
4) How to Create and Copy Accounts
5) How to Work with Multiple Ledgers
6) How to Group Control Accounts
7) How to Build Account Pyramids.
ACCOUNTING SETUP OVERVIEW:
What one need to gather before the Sage X3 Setup Process:
1) Chart of Accounts, including the Account Structure and Dimensions (also known as Divisions or Sub Categories)
2) The number and types of Ledgers for which you will be tracking values.
3) Company and Site information, including addresses, Contact information, and Chart of Accounts used.
TRADITIONAL ENTERPRISE ACCOUNTING STRUCTURE:
- In a traditional Enterprise or ERP System, the Companies or Databases are defined first, and then followed by Chart of Accounts for that particular Company.
- The Chart of Accounts could be general Ledger Accounts broken down by Cost Centres.
For Example tracking say Account 6000 for Rent by Departments. We could have 6000-100 for department one and 6000-200 for department two, and so on. This process would be repeated for other Companies. - If supporting Multiple Companies, you would repeat this process for another Company.
- That is Create Company A, and create its Chart of Account A.
Then Create Company B and create the Chart of Accounts for Company B.
ENTERPRISE MANAGEMENT APPROACH: CHART OF ACCOUNTS AND DIMENSION TYPES.
MULTIPLE CHART OF ACCOUNTS
Chart A - Chart B - Chart C
ÐIMENSION TYPES
REG - DEP - REP - PRJ
- With the Modern Enterprise Management Accounting Approach, it’s different, more flexible and efficient.
- Multiple Chart of Accounts and Dimension Types can be set up.
- In the Enterprise Management, we First define names of the Chart of Accounts that define the Account Format being used and then define Dimension Types.
- Dimension Types are Analytical information to track for Budgeting and Reporting purposes.
- Dimension Types are very similar to Cost Centres, but they give greater flexibility in recording them against transactions and reporting on these Dimensions.
- Dimensions are stored in separate tables from your financial transactions.
- You can set up Dimensions for any cost centers or Analytical information you want to track.
- Eg Dimensions can be defined for:
Departments, Regions, Sales Representatives, Projects, or Sales Groups.
ENTERPRISE MANAGEMENT APPROACH: LEDGERS AND ACCOUNT CORE MODEL
LEDGERS:
Ledger A. - Ledger B - Ledger C
Chart A. - Chart B.
REG, and. - REP, PRJ,
DEP. and DEP
ACCOUNT CORE MODEL:
MODEL 1. MODEL 2. MODEL 3
Ledger A. Ledger B. Ledger B,
Ledger C.
- After Defining Chart of Accounts, followed by Dimension Types, we then define Ledgers, which allow us to combine the Specific Chart of Accounts and Dimension Types to be used.
- Ledgers can then be set up using the relevant Chart of Accounts and Dimension Types.
- A Ledger can have a maximum of 9 Dimension Types.
FOR LEDGER A, we will use:
Chart A
DEP Code and a Region Code (For Dimensions)
FOR LEDGER B, we will use:
Chart B,
DEP Code, SALES REP Code, and PROJECT Code (For Dimensions)
FOR LEDGER C, we will use:
We may not want to track any Analytical information, so we won’t define any Dimensions. Will just track the Chart of Accounts.
The last step is to define the Account Core Models.
Account Core Models can have Multiple Ledgers.
This allows us to select the Ledgers we want to use for the Accounting Structure.
In our Example Above:
ACCOUNT CORE MODEL 1 uses:
Ledger A,
Chart of Accounts A,
DEP and REG (Dimension Types)
MODEL 2, we use:
Ledger B,
Chart of Accounts B,
REP, PRJ and DEP (Dimension Types)
The Software supports Multi-Ledger Accounting.
For a single ACOUNT CORE MODEL, we can use Multiple Chart of Accounts as is the case in Model 3.
MODEL 3, we use:
Ledger B and Ledger C.
COMPANY SET UP IN SAGE X3:
COMPANY A
Account Core Model 1,
Ledger A,
Chart of Account A,
REG and DEP (For Dimensions)
COMPANY B
Account Core Model 2,
Ledger B,
Chart B,
REP, DEP and PRJ ( For Dimensions)
- Each Company must be linked to an Account Core Model as shown above.
- Multiple Companies can share an Account Core Model.
SAGE X3 ACCOUNTING STRUCTURE OVERVIEW:
Step 1 - Chart of Accounts Setup
Step 2 - Dimension Types Setup
Step 3 - Ledgers Setup
Step 4 - Account Core Models Setup
Step 5 - Companies and Sites.
DEFINING THE ACCOUNT PLAN:
- THE ACCOUNT PLAN:
- Defines the Chart of Accounts Structure.
- Controls Tax Posting
- Details of Specific Accounts (Such as Retained Earnings)
- Links to Account Classes
- Linked Accounts (Reciprocal Accounts) between sites to record Inter-Site transactions.
- Allows Generation of Reporting codes and Inter-Plan Mapping
- Allows for the Generation of default Dimension Types by Account Root.
NB: Return to this function to define any additional Setup Information after the other Setup functions are completed.
DEFINING CHART OF ACCOUNTS IN SAGE X3: (GESCOA)
Path: (GESCOA) or
Setup > Organizational Structure > Chart of Accounts.
Next, Select an existing Chart of Accounts and Modify it for training purposes.
Step 1. In the Left List:
Select Chart of Accounts Code NA1.
Step 2. In the Chart Code Field, replace NA with TR1 (Training Chart).
Step 3. In the Description Column, type: Training Legal/Analytical to replace existing Description.
Step 4. Training L/A in the Short Description Column.
Step 5. Type Account Num in the Header Column.
Step 6. Put 10# as the Formart in the Format Section and click on Fixed.
This means that the Chart of Accounts numbers will be fixed 10 Numerical Chacters.
If one unchecked the Fixed it will mean that the COA will have a Maximum of 10 Numerical Characters but the system can also accept less than 10 Numerical Characters.
Step 7. Click on Create, to create the Chart of Accounts.
Step 8. Click on Yes to continue, if prompted to confirm the duplication.
After successfully creating the Chart of Accounts, explore the screen and go through each section of the PLAN tab to learn more about the settings you can make.
IDENTIFICATION SECTION:
In the Identification section on the Plan Tab, enter a Short description, Column Header, and Access Code.
- The Short title entered is used when displaying constraints and on Reports.
- The Column Header when entering items on eg, Journal Entries and Invoices.
- Entry at the Legislation field is optional and contains the Legislation Code. (Miscellaneous Table 909)
- This value is used on creating and validation of the folder.
This field is also used as a Filter and on entry of Invoices, Payments, Journals etc.
- If this field is empty, it means the current record uses the Legislation of the Company regarding the movement.
- The Access Code selected determines who will be able to Access the PLAN based on Security defined for the User.
MANAGEMENT SECTION:
GENERAL TRACKING: Select to indicate that this COA contains General Accounts for tracking Balances and Financial Reporting.
ANALYTICAL TRAINING: Select, Default Dimension Specific to an Account Root.
CONTROL ACCOUNTS: Select, use of collective Accounts within the Plan or COA.
TAX MANAGEMENT: Select, use Plan for Tax Management.
AUTOMATIC CREATION: Select, Allows New Accounts to be automatically created on transaction entry. Account created can be identified by its title which contains the number of the source entry surrounded by three XXXs before and after the Account, eg. XXX FC FAC-ASN0101-005 XXX.
FORMAT SECTION:
Put a tick on Fixed Length to determine the specific length for all Accounts to be created, ie 5 Digits.
If you put say 3 digits instead of 5, Zeros are auto filled in this case 2, eg 305 will then read 30500.
If the Fixed Length check box is not checked, the Account number created can be less than the maximum length ie, in the above example, the Account will be added as 305.
ACCOUNT FORMAT:
In addition to the Length of an Account, we can also define if Account Numbers entered are: Numeric only by #, Alpha Charactera only by A, or Alphanumeric by c.
For example:
10# means a maximum of 10 Numeric Characters only,
10A means a maximum of 10 Alpha Characters only, and
10c means a maximum of 10 Alphanumeric Characters.
REFERENCE PYRAMID: Select, Pyramid containing Dimensions and Accounts for Reports and Inquiries.
DEFAULT CLASSES GRID:
PREFIX: Refers to the Default Account Root Class attached to the COA which can be Alpha, Numeric or Alphanumeric.
The Numeric PREFIX contains up to 10 characters and the longest PREFIX from a list is used to define the Class.
For Example, for PREFIXES 4, 44 and 445.
445 is used to define the VAT Default Account Class as:
VAT Account: 445710.
CLASS: Is the Identifier of the Account Class composed of up to ten Alphanumeric Characters.
Is the Account Class associated by default to the current COA.
This Value is taken by default from the Setup of the Chart of Accounts.
It is used to specify:
Behavior of the closing process with respect to the Account (CFE or not)
Sign of the Account Balance in the various reports and Inquiries for the Analytical Accounts.
Subdivision into Classes enables the off Balance-sheet Accounts to be distinguished from the others.
ACCOUNT CLASSES: If associated to COA or Plan is considered a Default Legislation and can not be modified.
GRID OF DEFAULT CLASSES: Classes suggested are those of the Legislation mentioned here.
BUSINESS INTELLIGENCE SECTION:
BI PYRAMID: Select a Pyramid the COA Code will be used in, it can be defined later though.
CREATING ACCOUNT CLASSES IN SAGE X3: (GESCLS)
ACCOUNT CLASSES:
- These are assigned to Accounts and Account Groups.
- Determine if the Account is Balance Sheet or P/L
- Determine the Default Sign and Analytic Sense
- Represent Different Sections of Financial Statements, such as Assets and Liabilities.
- Can Represent the same section of Financial Statement, such as Current and Long-term Liabilities.
- Account Classes are Legislation Specific.
DEFAULT SET OF ACCOUNT CLASS CODES are automatically created when activating a Legislation.
New ones can also be added and existing ones can be modified.
CREATING ACCOUNT CLASSES:
Path: Navigation and on Search type > (GESCLS) or
Click on Navigation > Setup > Financials > Account Class.
There are Account Classes available for many Legislation.
Hover over the fields or Columns to learn more about the features.
LEGISLATION: The Account Code is compromised of up to 10 Alphanumeric Characters.
One can define an unlimited number of Account Class Codes.
CODE: If the root, ie (first Characters) of an Account Number created matches an Account Class Code, it automatically defaults to the appropriate Account Class, though it can be changed.
For example, if you enter 1001, it will default to the Account Class Code 1.
CATEGORY TYPE:
Represents the Account Category.
The options are:
Normal, Off Balance Sheet and Unused.
SELECT > Off Balance Sheet to have the option of excluding these Accounts from certain balance Reports.
This allows you to Show or use transaction posting from Purchase Orders or Sales orders, which normally don’t post to Financials to Show PO, PO Requests. SO and SO Quotes are known as Commitments and Pre-Commitments.
SELECT > Unused, to prevent creation of Accounts for this Account Code.
DEFAULT SIGN: Determines if the cursor is positioned automatically in either Debit or Credit Column when posting an entry to an Account associated with the Account Class.
CARRY FORWARD:
Is the Option that determines if Account balances are carried forward or closed on closing the Fiscal Year.
SELECT > Yes, to carry forward the amount to the following Fiscal Year ie, for SOFP Accounts.
SELECT > No, to post the balance to the Retained Earnings Account giving a zero balance, ie SOPL Accounts.
ANALYTIC SENSE: Determines if the sign of the Analytic balance of an Account is Charge/Expense Type or Revenue Type. This information is used for Inquiries and Reports analysis.
CREATING AN ACCOUNT: HOW TO CREATE AN ACCOUNT: (GESGAC)
After Creating COA and Account Classes, next to be created are ACCOUNTS.
Path: GESGAC or
SELECT: Navigation > Common Data > G/L Accounting Tables > General > Accounts.
Hover over the Header and General Tab to learn more.
CHART: Means Accounts created associate with A COA Account. The Account Number entered is based on the Format defined for the Account Plan selected.
- Can create an unlimited number of Accounts for a single COA or Plan
- Warning displays if Account Number entered does not match defined Format.
- Additionally, a red underline Warning displays in the field if entry differs from defined Format.
CONTROL: Select or check the box, to make this a Control Account.
- A Control Account requires the selection of a BP (This can be set on the Miscellaneous Tab) and is normally associated with AR and AP.
Business Partners represent Customers and Suppliers.
- Can only Select a Control Account when selecting an AR or AP Account as a Default or when entering transactions.
Hover over Columns.
IDENTIFICATION SECTION:
SHORT DESCRIPTION: Enter this.
SHORT CODE: Also enter one to use as Keyboard Shortcut for entries and Documents.
- Use 2 to 4 Alphanumeric Characters and the first Character must be a Letter.
- It must be unique Code in the COA.
- Must enter a Short Code if the Control Account Checkbox is selected.
- Can use Short Code as search criteria in functions and Inquiries.
CURRENCY: Select a Currency (optionally) at the Currency field if using Multi Legislation.
NB: Selecting a specific currency restricts the use of that Account to that currency only. Ie a USD Bank Account in a ZWL COA.
- ** If no Currency is specified, every Currency may be accepted upon entry.
CREATING A NEW ACCOUNT: STEPS:
Step 1: Click on New
Step 2: In the Account Field, type an Account Number, eg 12100.
Step 3: In the Description Column, type “Accounts Receivable- Training DB”
Step 4: Select the check box for Control since this is an AR Control A/C.
Step 5: Leave Currency field blank for now.
ĜENERAL TAB:
Field: SHORT DESCRIPTION
Entry: ARTrain.
Field: SHORT CODE
Entry: AR
Field: CLASSIFICATION
Entry: 1
FIeld: ACTIVE
Entry: Yes.
MANAGEMENT TAB:
This Tab is used to define information specific to recurring entries, taxes, reporting codes and Consolidation.
RECURRING ENTRIES SECTION: Some Expense and Revenue Accounts can be made to recur or repeat.
- Select > Automatic Balance Function to automatically balance a Recurring Journal Account to the associated Accrual Account.
- Select > Business Partner at the BP Field if the Selected Accrual Account is a Control Account.
- If using Multiple Legislation, determine if an Exchange Rate Variance for Payments is generated during entry matching.
VARIANCE TYPE SECTION: You determine if conversion variance calculated is posted by Journal Entry, or by Account Balance or by None.- If By JOURNALENTRY: the calculation is based on detailed Journal Entries. No cfd of balances.
The start and End dates might need to cover several Fiscal years. - If BY ACCOUNT BALANCE: Calculation is based on Account balances and carry forward balances are considered.
- If By JOURNALENTRY: the calculation is based on detailed Journal Entries. No cfd of balances.
TAXES SECTION: Allows for specification of a Tax Code to a GL Account. Subsequent Journal Postings against this account will capture the Tax Code on the Journal Entry Line.
TAX MANAGEMENT:
NOT SUBJECTED: Means the Account is not used for Tax Management eg Employees Expense and Depreciation Accounts.
SUBJECTED: Means the Account receives entries that must be considered to determine Taxable Base ie, (Taxable and Non-taxable Amounts) Sales and Purchases Accounts must have this option selected.
TAX ACCOUNT: Indicates a Tax Account and determines Tax Amount collected.
EU TAX ACCOUNT: An Account that receives Postings to determine Tax Amount to declare in other EU Countries.
PAYMENT ACCOUNT: Uses Account 409 or 419
TAX ALLOCATION FIELD: Indicate Tax rules if you selected either SUBJECTED or Tax Account above.
TAX CODES FIELD: Select Tax Codes associated with the Account.
- Can Select a maximum of three codes for a single Account.
- Fields only available if either Subjected or Tax Account was selected under Tax Management.
CONSOLIDATION SECTION: Only available if you have the CONSOLIDATION (CSL) Activity Code Active.
- If Consolidation Analysis check box is ticked, Pre-Consolidated balance details Account Balance by Partner.
- When Consolidated, System groups Debit transactions together and Credit transactions together into one balance.
- If the Check box is cleared all Debit and Credit entries will manifest in the Account itself and will present themselves at net balance.
FLOW CODE MANAGEMENT FIELD: Allows for specification of a Flow Code to an Account. Journal postings in this Account will capture the Flow Code on Journal entry lines.
Options available are:
Not Entered, Optional and Mandatory.
OPTIONAL OR MANDATORY: if selected, you can select a Flow code to use at the Flow if Debit and Flow if Credit Fields.
Path: Either Select Navigation > GESADI or:
Navigation > Development > Data and Parameters > Miscellaneous Tables.
MAKING SETTINGS ON THE MANAGEMENT TAB:
- Not Subjected to Tax Management.
- Select the automatic variances check box.
VARIANCE TYPE SECTION:
Select > By Account Balance for Assessment Type.
Click on MISCELLANEOUS TAB and make necessary entries.
MISCELLANEOUS TAB: It determines if the Account is Matchable,
Fixed Assets are tracked against this Account,
The default sign for entries and balances,
As well as BP Authorization.
- Select the Matchable Check Box to indicate that transactions relating to the same source are Matched.
The Ledger has to be flagged as Matching and this is usually done on Control Accounts. Eg Match Customer Invoices against respective Payments.
- You can ask the system to auto match transactions.
SUMMARY REPORTING CHECK BOX: If checked, a Summary Total is displayed by Journal and Month for the Account on Reports.
- If the Check box is cleared, all individual detail Postings are detailed on the reports.
- Regardless of the selection, detailed information is always stored for the Account.
SUBJECT TO DISCOUNT: Is only active on the Miscellaneous Tab if:
- The Folder is Mono-Legislation and the Discount Management Mode is set to Breakdown by VAT, Account Level at the Folder Level.
Or
- If the Folder is Multi-Legislation and the Discount Management Mode is set to Breakdown by.
CREDIT LEVEL UPDATE FIELD:
It determines if posting to this Account triggers the update of the Customer or Supplier record.
- This field is only available if the Control Account Checkbox is ticked.
- The Default Sign selected tells us the default position on posting Journal Entries, that is either Debit or Credit Column. The cursor defaults to the Column possible to balance the entry, if unspecified.
- Balance Sign selected defines normal sign on the Account Balance.
At Fiscal Year End, a list of all Accounts with Default signs that are different from Balance signs is generated or printed.
- Can also print a list of Customers with Credit Balances as well as Suppliers with Debit Balances based on this setting.
BP AUTHORIZATION SECTION: Determines if a Control Account can receive entries from one or more of the available Business Partner Types.
Select > Matchable check box and note that the Debit option for both the Default Sign and Balance Sign will be automatically Selected.
BP AUTHORIZATION SECTION: Set the Customer and Miscellaneous B Authorization to Yes.
REPORTING TAB:
A Reporting Code is an Account grouping code meant to simplify the Generation of Overview reports through the Financial Data Extraction (FDE) Setup function.
There are 10 Reporting Codes.
REPORTING CODE: Make sure AR is entered at both the Debit and Credit Fields.
ANALYTICAL TAB:
Is used to determine if budgets are tracked for this Account, as well as Default Values.
- BUDGET TRACKING CHECKBOX: Select if you are to track budget information for this Account.
- Budgets can only be entered for an analytical Ledger.
PYRAMIDS TAB:
Mainly used for Reports and Inquiries to characterize the Summary roll up Level and order of information to be retrieved. The process is automated.
- It is possible to assign each General or Analytical Account to Several Pyramids.
- An Account can only be attached once to a Pyramid (Group of Accounts).
- It can also be done within the specifications of the groups of Accounts.
- GROUP: This is the Pyramid Group in which the Account is included.
- LEVEL: This is the definition Level of the group of Accounts.
- ROW: Printing Order for groups of the same Level.
SCREEN:
- A Screen delivers a strict or open Authorization.
- If the Account is indicated as say ‘60’ ,the Current Account can be modified but a Validity Control will be processed for this Screen. (The Account’s name should start with ‘FR’.
- If left empty ( ‘’) ,the program will automatically take into Account the default Account defined in the previous zone and authorize any other value.
- Wildcards that can used are:
“” to replace any character chain.
“?” to replace a single character.
- If the Screen is empty, the Account is attached directly to the Group but it can be removed by deleting the line.
However, if it is attached via a screen, the line cannot be broken.
ADDRESS TAB:
Associate Addresses with the Record (User, Company, Site, BP, etc) Each Address Code is unique to a given record.
BANK TAB:
Use this Tab to define Bank Account Information by Country.
You can capture the Bank ID Number defined for the Account when entering payments in the Payment/Receipt entry (GESPAY) Function.
- The information can be used when doing electronic banking.
- Click on Create to create the Account.
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