NEOSYS User Support Wiki - User contributions [en]

Using NEOSYS Media System

2008-11-26T09:57:03Z

85.17.154.66:

=== Credit Notes ===

A credit note is exactly the opposite of an invoice. It is a document used to modify or correct errors made in the sales invoice which has already been sent to the client. For example if a client has already been invoiced and now we need to provide a credit for that invoice, the reason for which could be anything from the client asking for compensation or being overharged, we will send the client a credit note for the required amount. It can be regarded as a 'negative invoice'.

[[Issuing Credit Notes in Media]]

=== Issuing separate invoices or credit notes for selected discounts and charges ===

NEOSYS can optionally provide clients with a supplementary invoices/credit notes for certain discounts and charges. Without this option, all discounts and charges would have to show on a single invoice.

On media plans and schedules append the letter "X" (or "x") to the discount or charge(s) that are not to show on the initial invoice and should appear on a separate invoice/credit note.

For example, enter a discount as -5%X if it is to be shown on a separate credit note.

When creating invoices to clients, an option is provided on the invoice creation form to allow raising of either a) the initial invoice only, or b) the final invoice/credit note only or c) both at the same time.

You cannot raise the final invoice/credit note unless the initial invoice is actually raised. Note that this means that you cannot get proforma invoices for the "Both" option.

=== Booking without showing all discounts and charges from the supplier ===

NEOSYS can optionally issue media booking orders with certain discounts and charges omitted.

This allows the final net cost of media to be recorded in NEOSYS while not forcing the final net cost to be shown on booking orders.

On media plans and schedules append the letter "X" (or "x") to the discount or charge(s) that are not to show on the booking order.

For example, enter a discount as -5%X if it is not to be shown on the booking order.

=== Posting media supplier invoices before issuing schedules to the client ===

Assuming that you are accruing media costs by schedule and not by vehicle or supplier then the contra account of the supplier invoice posting will be the schedule code or, if the schedules codes are pure numbers then SCH9999 where 9999 is the number of the schedule.

Supplier invoices posted before issuing invoices to client are work in progress (assets) but, in NEOSYS common practice, we still post them into the Media Accruals Ledger which could more properly be called Media Accruals/WIP Ledger.

The accrual account for the schedule is created as soon as the schedule is approved and not only when the invoice is issued to the client. Schedule approval happens in practice automatically at the time of the first booking. Therefore unless you book a schedule (or specifically enter the approval date on the schedule file, there will be no accrual account created for you to post the supplier invoice into. This is logical since if you haven't booked or specifically approved a schedule then you should arguably not be able to post supplier invoices for that schedule.

=== Removing unnecessary items from List of Schedules Pending Invoices ===

Sometimes, schedules which don't need invoicing appear on the List of Schedules Pending Invoicing. This occurs if you do the following:

# Invoice the schedule. NEOSYS removes it from the pending invoicing list.
# Modify the schedule. NEOSYS puts it back onto the pending invoicing list.
# Modify the schedule back to as it was invoiced in. NEOSYS *doesn't* remove it from the pending invoicing list.

The solution is to ask for a proforma invoice for the schedule. This will give you a "nothing to invoice" message and remove it from the list. Asking for a proforma instead of an invoice is a precaution to avoid accidentally raising an invoice if there really is something to invoice on the schedule that you didn't expect, and will show you exactly what is pending invoicing.

=== Handling online media ===

==== Situation explained ====

Online Media usually deal in hundred thousand impressions. Eg. 500,000 impressions or 1,000,000 impressions – and the best way to deal with this in NEOSYS is to enter them as a package on the rate card – i.e. 1 rate for 500,000 impressions.

However when handling free to agency / free to client there seems to be a problem and I have outlined an example:
Agency cost: 500,000 impressions paid and 500,000 impressions free
Client bill: 750,000 impressions paid and 250,000 impressions free

In this case a package cant be made of 500,000 each as then it show show the same for the client.

==== Solution ====

This is a costing issue so it should show in the existing costing columns as follows:

[[image:onlinemedia.jpg]]

=== Handling long term bookings in Outdoor or continuous daily bookings in Newspapers ===

Incase you need to do bookings for a series of days i.e. 10 days or 4 weeks, especially with Outdoor, NEOSYS allows you to enter the same in the specification as follows:

Outdoor hoarding site near Airport,4 weeks
Outdoor hoarding site near Airport,10 days
Outdoor hoarding site near Airport,1 month

Once you do this, enter the starting date of the campaign in the date grid box.

This feature doesn't have an effect on the amounts, but instead NEOSYS calculates the start and stop date based on the date you select in the Date grid.

=== Processing List of Wrong Ads ===

Agencies have to cope with the fact that ads places in publications can go wrong and hence NEOSYS has come up with the following feature to followup/generate a report of such wrong ads which need action:

# In the Certification File, generate the required list of ads pending certification, and in the space to enter the Certificate/Voucher/Page number, put the same wrapped in round brackets eg. (XXXX).
# Later on you can take the ordinary List of Ads Pending Certification report and it will include all those with the Certificate/Voucher/Page numbers in brackets just as if there was no number at all and thereafter you can followup on such ads.

=== Processing wrong Incoming Media Supplier Invoices ===

If you find that the invoice amount is not correct or any discrepancy, NEOSYS has created a special function to distinguish/followup on such invoices for reporting purposes. To enable this feature follow the procedure below:

# In the Supplier Invoice File, generate the required list of ads pending supplier invoices, and in the space to enter the supplier invoice number, put the same wrapped in round brackets eg. (XXXX).
# Later on you can take the ordinary List of Ads Pending Supplier Invoice report and it will include all those with supplier invoice numbers in brackets just as if there was no supplier invoice number at all.

For more information on handling Incoming Media Supplier Invoices, go to [[Processing of Incoming Media Supplier Invoices]]

=== Handling booking of additional dates on already booked lines ===

==== Situation explained ====

In a schedule which has a line which is already booked (eg. booking order no 10001) and later on you add another date to that line and book the same (eg. booking order no 10002) and thereafter you cancel or amend the 1st ad, the cancellation or amendment order mentions the booking order reference number of the 2nd booked ad (i.e. 10002).

==== Solution explained ====

NEOSYS is designed to only show the last booking order as it doesn't support handling of multiple dates with multiple orders as ad dates are not linked to the booking order number. In such a situation above, any new dates have to added on to new lines in the same schedule. Incase you do need to add the date to the same line, then it is recommended that you cancel the first ad and rebook both the ads again.

=== Handling booking a schedule with one vehicle in different lines with different currencies ===

==== Situation explained ====

Vehicle ABC with currency USD was selected on line 1 of a schedule and thereafter you enter a couple of other lines for other vehicles. Later on you change the currency on the Vehicle File of vehicle ABC to be AED and enter another line in the schedule - i.e. line 4 for vehicle ABC with currency AED. Now, when you go to book this vehicle and click on the book button on the New Booking Order Page, the booking order will show only the 1st line of that vehicle as NEOSYS cannot send a consolidated booking order for the same vehicle with different currencies.

==== Solution explained ====

Hence you need to send separate booking orders for the same vehicle as they are in different currencies. So, either you can book vehicle ABC from line 1 first and click on the book button again to book the next one, or if you want to book vehicle ABC from line 4, just put in the line number of the schedule in the option below and click on book.

[[image:vehiclelineselection]]

=== [[Processing of Incoming Media Supplier Invoices]] ===

=== [[Using NEOSYS VAT/Sales Tax Accounting for Media]] ===

Using NEOSYS Job System

2008-11-23T08:09:27Z

85.17.154.66: /* Costs */

== Creating a job in production system ==

Production is used for BTL advertising, a job file consists detailed information about the job. Information such as the client, brand, market, bill and cost, etc. is mentioned in the job file. So we shall go ahead and look at the steps involved in creating a job –
[[image:jobfile.jpg]]

What we see above is what the job file looks like. We can broadly divide it into two main divisions, one which contains the information about the job and the second division is where the cost and billing information is to be entered.

We will begin with a step by step tutorial for the first half of the job file -

===== Job No. =====

As we press ‘enter’ the system would automatically generate the job number and if you wish to have a specific job number it can be entered manually, the system would then give the option of either creating a new job or copying from an existing job.
NOTE – this feature is common throughout NEOSYS and also applies to ‘costs’ (PO/PI) and ‘billing’ (estimate/invoice) file.

===== Period =====

This would mention the current month and year and would be updated automatically.

===== Brand =====

This would mention the client and brand data. We can press F7 to choose the brand from the existing list or press F6 and create a new brand.

===== Company =====

This would mention the code of the company which is represented by the executive preparing the job file.

===== Status =====

This would mention the status of the job which by default is ‘open’ and could otherwise be ‘closed’ and ‘reopened’.

''NOTE'' – not all users are given the authority to alter the status of the job file.

===== Type =====

This would mention the medium chosen for advertising which can be selected from an existing list of option after pressing F7 or a new type can be created after pressing F6.

===== Executive =====

This would be the user ID which was used to sign into NEOSYS.

===== Attention =====

This would mention the name of the client representative.

===== Description =====

It is a sort of a header, usually between one or two words, to the detailed information which is entered in the following column.

===== Brief =====

This contains detailed technical information regarding the type of media chosen for the advertising. We also have the option of copying the ‘brief’ to the estimate or the purchase invoice. The details mentioned in the brief can also used later for reference purposes.

''NOTE'' – the nature of information entered in the ‘brief’ may differ based on the mode of functioning of the agency.

''NOTE'' – at all times please press F9 to save the data before moving on to another window.

===== COSTS & BILLING SECTION =====

[[image:purchaseorderfile.jpg]]

===== Costs =====

The purchase order has information about the costs involved and supplier details. When the supplier invoice is received we can change the status to ‘invoice’ and mention the invoice details.

[[image:Estimateinvoicefile.jpg]]

===== Billing =====

This is where we raise estimates to the client and invoice the client from. The estimate has the quantity and unit price mentioned.

How do I Invoice the client?

On the estimate/invoice file we can click on ‘Invoice’ tab and view the proforma invoice and subsequently invoice the client.

NOTE – for the changes made in the cost or billing section please click on ‘reopen’ for the changes to reflect.

== Issuing Credit Notes in production ==

What is a credit note?

A credit note is the opposite of invoice. It is issued by a seller to a purchaser to record the reduction of bill possibly due to a discount, return or cancellation.

How do I issue a credit note in production?

Once the client is invoiced another estimate can be made with the desired amount in negative and a credit note of the same will be issued directly.

==[[Accounting entries created by the Production system]]==

== Raising purchase orders/invoices to/from SUNDRY SUPPLIERS ==

1. PO/PI with a normal supplier

[[Image:Purchase_Order_1.jpg]]

2. PO/PI with a sundry supplier. An extra box popups up if the supplier name starts with the letters SUNDRY (case insensitive). The operator must type in something.

To do this you need to first create a supplier with name something like "Sundry Suppliers"

[[Image:Purchase_Order_2.jpg]]

== Why does NEOSYS reverse PO/repost PI on the cost a/c even when the PO/PI amounts agree? ==

This is a common question but NEOSYS practice has prevailed for some very good reasons.

#So that ALL purchase invoices show in the cost account. This makes life much easier for accountants to find information and auditors to verify the cost a/c.
#The reversal reflects the fact that there is no longer an ESTIMATED cost in the cost a/c and that it has been replace by a REAL cost.

Dislike of the apparently unnecessary reversal and re-entry is generally based on:
#A lack of appreciation of the benefits mentioned above (usually overcome by explanation)
#A desire to be like manual accounting where one would save staff time by not doing the reversal (irrelevant if totally automated)
#A desire for the cost a/c to be shorter especially if most PI match PO (less important these days now paper records are less used)

One can also apply the principle of not varying policy without good reason. In this case, making completely different accounting entries just because a PI varied by one current unit from its PO could be viewed as illogical.

== Switching from manual costing to automatic NEOSYS Job Costing ==

Assuming that jobs are numbered sequentially just start from any particular job number and ensure that all costs that relate to that job number ("new jobs") and beyond are handled through the new automated NEOSYS practice and not through the old manual procedures.

All cost entries that relate to jobs prior to that number ("old jobs") must be continue to be handled in the old way and it and entries are generated by NEOSYS for these old jobs then those entries must be deleted and not posted.

NEOSYS will automatically create job account in a chart with code "WIPxx" where xx is the current year like "WIP08".

You must create the initial chart (e.g. with code "WIP08") yourself and then NEOSYS will create all future year charts for you. When creating the initial chart make it an open item type chart and you will have to put a control A/c. The control A/c for a WIP ledger is normally in the current assets section of the General Ledger. If you do not have a WIP control A/c (or you have an WIP account but it is not a control account and has any journals passed against it) then you will have to create a new account in the GL called something like WIP Control A/c.

If there are too many jobs in one chart then NEOSYS will create "WIP082", "WIP083" etc.

== Correcting Incorrect Invoices ==

You cannot reverse an invoice once it is issued from NEOSYS. There is no way to be sure that someone has not (or will not) send out the incorrect invoice therefore if the system allow modifications there could be two or more different invoices in existence with exactly the same number. This is not good practice.

Therefore NEOSYS requires you to issue a credit note and another invoice as follows:

=== In the Job Module ===

#If the job is closed and you are not authorised to change closed jobs, reopen it using Job File. If you are not authorised to reopen jobs, then get an authorised person to do this.
#Create another estimate by copying the original wrongly invoiced estimate and change all the amounts to be negative.
#"Invoice" this new estimate in the usual way and you will get a credit note.
#Create another estimate by copying the originally wrongly invoiced estimate and modify that and/or invoice it as and when you like.

=== In the Finance Module ===

#All the journals generated including the original wrong invoice and the credit note MUST be posted otherwise auditors will question the missing invoice numbers.
#Allocate the invoice to credit note or vice versa so that they do not show as outstanding on the client's statement of outstanding items.
#If you really dont want the invoice and credit note showing on the movement account of the client then create a suspense a/c in the clients ledger and modify the journals Client A/c column before you post.

Using NEOSYS Job System

2008-11-23T08:08:21Z

85.17.154.66: /* Billing */

== Creating a job in production system ==

Production is used for BTL advertising, a job file consists detailed information about the job. Information such as the client, brand, market, bill and cost, etc. is mentioned in the job file. So we shall go ahead and look at the steps involved in creating a job –
[[image:jobfile.jpg]]

What we see above is what the job file looks like. We can broadly divide it into two main divisions, one which contains the information about the job and the second division is where the cost and billing information is to be entered.

We will begin with a step by step tutorial for the first half of the job file -

===== Job No. =====

As we press ‘enter’ the system would automatically generate the job number and if you wish to have a specific job number it can be entered manually, the system would then give the option of either creating a new job or copying from an existing job.
NOTE – this feature is common throughout NEOSYS and also applies to ‘costs’ (PO/PI) and ‘billing’ (estimate/invoice) file.

===== Period =====

This would mention the current month and year and would be updated automatically.

===== Brand =====

This would mention the client and brand data. We can press F7 to choose the brand from the existing list or press F6 and create a new brand.

===== Company =====

This would mention the code of the company which is represented by the executive preparing the job file.

===== Status =====

This would mention the status of the job which by default is ‘open’ and could otherwise be ‘closed’ and ‘reopened’.

''NOTE'' – not all users are given the authority to alter the status of the job file.

===== Type =====

This would mention the medium chosen for advertising which can be selected from an existing list of option after pressing F7 or a new type can be created after pressing F6.

===== Executive =====

This would be the user ID which was used to sign into NEOSYS.

===== Attention =====

This would mention the name of the client representative.

===== Description =====

It is a sort of a header, usually between one or two words, to the detailed information which is entered in the following column.

===== Brief =====

This contains detailed technical information regarding the type of media chosen for the advertising. We also have the option of copying the ‘brief’ to the estimate or the purchase invoice. The details mentioned in the brief can also used later for reference purposes.

''NOTE'' – the nature of information entered in the ‘brief’ may differ based on the mode of functioning of the agency.

''NOTE'' – at all times please press F9 to save the data before moving on to another window.

===== COSTS & BILLING SECTION =====

[[image:purchaseorderfile.jpg]]

===== Costs =====

The purchase order has information about the costs involved and supplier details. When the supplier invoice is received we can change the status to ‘invoice’ and mention the invoice details.

[[image:Estimateinvoicefile.jpg]]

===== Costs =====

The purchase order has information about the costs involved and supplier details. When the supplier invoice is received we can change the status to ‘invoice’ and mention the invoice details.

NOTE – for the changes made in the cost or billing section please click on ‘reopen’ for the changes to reflect.

== Issuing Credit Notes in production ==

What is a credit note?

A credit note is the opposite of invoice. It is issued by a seller to a purchaser to record the reduction of bill possibly due to a discount, return or cancellation.

How do I issue a credit note in production?

Once the client is invoiced another estimate can be made with the desired amount in negative and a credit note of the same will be issued directly.

==[[Accounting entries created by the Production system]]==

== Raising purchase orders/invoices to/from SUNDRY SUPPLIERS ==

1. PO/PI with a normal supplier

[[Image:Purchase_Order_1.jpg]]

2. PO/PI with a sundry supplier. An extra box popups up if the supplier name starts with the letters SUNDRY (case insensitive). The operator must type in something.

To do this you need to first create a supplier with name something like "Sundry Suppliers"

[[Image:Purchase_Order_2.jpg]]

== Why does NEOSYS reverse PO/repost PI on the cost a/c even when the PO/PI amounts agree? ==

This is a common question but NEOSYS practice has prevailed for some very good reasons.

#So that ALL purchase invoices show in the cost account. This makes life much easier for accountants to find information and auditors to verify the cost a/c.
#The reversal reflects the fact that there is no longer an ESTIMATED cost in the cost a/c and that it has been replace by a REAL cost.

Dislike of the apparently unnecessary reversal and re-entry is generally based on:
#A lack of appreciation of the benefits mentioned above (usually overcome by explanation)
#A desire to be like manual accounting where one would save staff time by not doing the reversal (irrelevant if totally automated)
#A desire for the cost a/c to be shorter especially if most PI match PO (less important these days now paper records are less used)

One can also apply the principle of not varying policy without good reason. In this case, making completely different accounting entries just because a PI varied by one current unit from its PO could be viewed as illogical.

== Switching from manual costing to automatic NEOSYS Job Costing ==

Assuming that jobs are numbered sequentially just start from any particular job number and ensure that all costs that relate to that job number ("new jobs") and beyond are handled through the new automated NEOSYS practice and not through the old manual procedures.

All cost entries that relate to jobs prior to that number ("old jobs") must be continue to be handled in the old way and it and entries are generated by NEOSYS for these old jobs then those entries must be deleted and not posted.

NEOSYS will automatically create job account in a chart with code "WIPxx" where xx is the current year like "WIP08".

You must create the initial chart (e.g. with code "WIP08") yourself and then NEOSYS will create all future year charts for you. When creating the initial chart make it an open item type chart and you will have to put a control A/c. The control A/c for a WIP ledger is normally in the current assets section of the General Ledger. If you do not have a WIP control A/c (or you have an WIP account but it is not a control account and has any journals passed against it) then you will have to create a new account in the GL called something like WIP Control A/c.

If there are too many jobs in one chart then NEOSYS will create "WIP082", "WIP083" etc.

== Correcting Incorrect Invoices ==

You cannot reverse an invoice once it is issued from NEOSYS. There is no way to be sure that someone has not (or will not) send out the incorrect invoice therefore if the system allow modifications there could be two or more different invoices in existence with exactly the same number. This is not good practice.

Therefore NEOSYS requires you to issue a credit note and another invoice as follows:

=== In the Job Module ===

#If the job is closed and you are not authorised to change closed jobs, reopen it using Job File. If you are not authorised to reopen jobs, then get an authorised person to do this.
#Create another estimate by copying the original wrongly invoiced estimate and change all the amounts to be negative.
#"Invoice" this new estimate in the usual way and you will get a credit note.
#Create another estimate by copying the originally wrongly invoiced estimate and modify that and/or invoice it as and when you like.

=== In the Finance Module ===

#All the journals generated including the original wrong invoice and the credit note MUST be posted otherwise auditors will question the missing invoice numbers.
#Allocate the invoice to credit note or vice versa so that they do not show as outstanding on the client's statement of outstanding items.
#If you really dont want the invoice and credit note showing on the movement account of the client then create a suspense a/c in the clients ledger and modify the journals Client A/c column before you post.

Accounting entries created by the Production system

2008-10-23T13:49:29Z

85.17.154.66:

= Handling different scenarios of invoicing =
There can be various possible scenarios in the event of invoicing a client. The following are the scenarios and the subsequent entries that would be updated---

==Scenario 1 – What are the entries made when a client is invoiced without cost?==

•Client A/C DR
Income A/C CR

==Scenario 2 - What are the entries made when the job has a cost/PO and supplier invoice is not received as yet or received but not entered on the system at the time of invoicing the client?==

•Client A/C DR
Income A/C CR

•Cost A/C DR (cost taken from the PO)
WIP A/C CR (cost taken from the PO)

Once you enter the supplier invoice details on the PO, it becomes a PI, and the following entries are created by NEOSYS

•WIP A/C DR (with the original cost – reversed)
Cost A/C CR (with the original cost – reversed)

•Cost A/C DR (with the new/original cost)
Supplier A/C CR (with the new/original cost)

Note- The second scenario is the most common scenario and NEOSYS recommends the client to follow this as a rule.

==Scenario 3 – What are the entries made when Supplier invoice is received before the client is invoiced?==

•WIP A/C DR
Supplier A/C CR

The following entries are then created when you invoice the client

•Client A/C DR
Income A/C CR

•Cost A/C DR (cost taken from the PI)
WIP A/C CR (this entry nullifies the DR made to WIP)

==Scenario 4 - What are the entries made when a client is not billed and the supplier is to be paid?==

Note: happens when client refuses the final product, due to your mistake, and you have to pay the supplier. Also happens when you pitch for jobs and there is no income.

•Cost A/C DR
Supplier A/C CR

==Scenario 5 - What are the entries created when modifications are made to the P/O before the supplier invoice is received?==

This is when the job has been billed to the client. Creation and modifications to PO before the job has been billed cause no accounting entries at all.

Note : The previous entries made would be cancelled first before making the new entries.

•WIP A/C DR (with the original cost reversed)
Cost A/C CR (with the original cost reversed)

•Cost A/C DR (cost taken from new PO)
WIP A/C CR (cost taken from new PO)

==Scenario 6 - What are the entries made when a purchase order is cancelled?==

This is when the job has been billed to the client. Creation and modifications to PO before the job has been billed cause no accounting entries at all.

•WIP A/C DR
Cost A/C CR

==Scenario 7 - What are the entries made when the client is invoiced without any cost, and the cost is later added?==

•Client A/C Dr
Income A/C Cr

When the cost is added (i.e. PO is made):

•WIP A/c Cr (cost taken from the PO)
Cost A/c Dr (cost taken from the PO)

When the PO is converted to a PI:

•WIP A/C Dr (with the original cost – reversed)
Cost A/C Cr (with the original cost – reversed)

•Cost A/C Dr (with the new/original cost)
Supplier A/C Cr (with the new/original cost)

==Scenario 8 - What are the entries made when the purchase invoice arrives different from the purchase order and after the job has been billed?==

At the date of the purchase invoice NOT at the date of the purchase order or job period or the date of the invoice to the client.

•WIP A/C Dr (with the PO provisional cost – reversed)
Cost A/C Cr (with the PO provisional cost – reversed)

•Cost A/C Dr (with the actual PI cost)
Supplier A/C Cr (with the actual PI cost)

The net effect on cost is that the cost is amended by the descrepancy between the purchase order and the purchase invoice IN THE MONTH OF THE PURCHASE INVOICE.

= Handling receipt of purchase invoice (against purchase order) after invoicing the client =

In addition to the notes above, you need to take understand the various scenarios in handling the receipts of purchase invoice against purchase orders after invoicing the client with reference to date of receipt.

== Scenario 1 - What are the entries created when the purchase invoice is to be recorded after the invoice month? ==
Eg. Purchase invoice is recorded on 05/11/2008 and the client was invoiced on 05/10/2008:

[[Image:pi1.jpg]]

== Scenario 2 - What are the entries created when the purchase invoice is to be recorded before the invoice month? ==
Eg. Purchase invoice is recorded on 05/09/2008 and the client was invoiced on 05/10/2008:

[[Image:pi2.jpg]]

== Scenario 3 - What are the entries created when the purchase invoice is slightly more than the purchase order (after invoicing the client)? ==
Eg. Purchase order was for 5000 AED, but the Purchase invoice was received for 5500 AED:

[[Image:pi3.jpg]]

== Scenario 4 - What are the entries created when the purchase invoice is slightly less than the purchase order (after invoicing the client)? ==
Eg. Purchase order was for 5000 AED, but the Purchase invoice was received for 4500 AED:

[[Image:pi4.jpg]]

Accounting entries created by the Production system

2008-10-23T13:38:55Z

85.17.154.66:

There can be various possible scenarios in the event of invoicing a client. The following are the scenarios and the subsequent entries that would be updated---

==Scenario 1 – What are the entries made when a client is invoiced without cost?==

•Client A/C DR
Income A/C CR

==Scenario 2 - What are the entries made when the job has a cost/PO and supplier invoice is not received as yet or received but not entered on the system at the time of invoicing the client?==

•Client A/C DR
Income A/C CR

•Cost A/C DR (cost taken from the PO)
WIP A/C CR (cost taken from the PO)

Once you enter the supplier invoice details on the PO, it becomes a PI, and the following entries are created by NEOSYS

•WIP A/C DR (with the original cost – reversed)
Cost A/C CR (with the original cost – reversed)

•Cost A/C DR (with the new/original cost)
Supplier A/C CR (with the new/original cost)

Note- The second scenario is the most common scenario and NEOSYS recommends the client to follow this as a rule.

==Scenario 3 – What are the entries made when Supplier invoice is received before the client is invoiced?==

•WIP A/C DR
Supplier A/C CR

The following entries are then created when you invoice the client

•Client A/C DR
Income A/C CR

•Cost A/C DR (cost taken from the PI)
WIP A/C CR (this entry nullifies the DR made to WIP)

==Scenario 4 - What are the entries made when a client is not billed and the supplier is to be paid?==

Note: happens when client refuses the final product, due to your mistake, and you have to pay the supplier. Also happens when you pitch for jobs and there is no income.

•Cost A/C DR
Supplier A/C CR

==Scenario 5 - What are the entries created when modifications are made to the P/O before the supplier invoice is received?==

This is when the job has been billed to the client. Creation and modifications to PO before the job has been billed cause no accounting entries at all.

Note : The previous entries made would be cancelled first before making the new entries.

•WIP A/C DR (with the original cost reversed)
Cost A/C CR (with the original cost reversed)

•Cost A/C DR (cost taken from new PO)
WIP A/C CR (cost taken from new PO)

==Scenario 6 - What are the entries made when a purchase order is cancelled?==

This is when the job has been billed to the client. Creation and modifications to PO before the job has been billed cause no accounting entries at all.

•WIP A/C DR
Cost A/C CR

==Scenario 7 - What are the entries made when the client is invoiced without any cost, and the cost is later added?==

•Client A/C Dr
Income A/C Cr

When the cost is added (i.e. PO is made):

•WIP A/c Cr (cost taken from the PO)
Cost A/c Dr (cost taken from the PO)

When the PO is converted to a PI:

•WIP A/C Dr (with the original cost – reversed)
Cost A/C Cr (with the original cost – reversed)

•Cost A/C Dr (with the new/original cost)
Supplier A/C Cr (with the new/original cost)

==Scenario 8 - What are the entries made when the purchase invoice arrives different from the purchase order and after the job has been billed?==

At the date of the purchase invoice NOT at the date of the purchase order or job period or the date of the invoice to the client.

•WIP A/C Dr (with the PO provisional cost – reversed)
Cost A/C Cr (with the PO provisional cost – reversed)

•Cost A/C Dr (with the actual PI cost)
Supplier A/C Cr (with the actual PI cost)

The net effect on cost is that the cost is amended by the descrepancy between the purchase order and the purchase invoice IN THE MONTH OF THE PURCHASE INVOICE.

Accounting entries created by the Production system

2008-10-23T13:37:22Z

85.17.154.66:

= Journal entries created by NEOSYS =

There can be various possible scenarios in the event of invoicing a client. The following are the scenarios and the subsequent entries that would be updated---

==Scenario 1 – What are the entries made when a client is invoiced without cost?==

•Client A/C DR
Income A/C CR

==Scenario 2 - What are the entries made when the job has a cost/PO and supplier invoice is not received as yet or received but not entered on the system at the time of invoicing the client?==

•Client A/C DR
Income A/C CR

•Cost A/C DR (cost taken from the PO)
WIP A/C CR (cost taken from the PO)

Once you enter the supplier invoice details on the PO, it becomes a PI, and the following entries are created by NEOSYS

•WIP A/C DR (with the original cost – reversed)
Cost A/C CR (with the original cost – reversed)

•Cost A/C DR (with the new/original cost)
Supplier A/C CR (with the new/original cost)

Note- The second scenario is the most common scenario and NEOSYS recommends the client to follow this as a rule.

==Scenario 3 – What are the entries made when Supplier invoice is received before the client is invoiced?==

•WIP A/C DR
Supplier A/C CR

The following entries are then created when you invoice the client

•Client A/C DR
Income A/C CR

•Cost A/C DR (cost taken from the PI)
WIP A/C CR (this entry nullifies the DR made to WIP)

==Scenario 4 - What are the entries made when a client is not billed and the supplier is to be paid?==

Note: happens when client refuses the final product, due to your mistake, and you have to pay the supplier. Also happens when you pitch for jobs and there is no income.

•Cost A/C DR
Supplier A/C CR

==Scenario 5 - What are the entries created when modifications are made to the P/O before the supplier invoice is received?==

This is when the job has been billed to the client. Creation and modifications to PO before the job has been billed cause no accounting entries at all.

Note : The previous entries made would be cancelled first before making the new entries.

•WIP A/C DR (with the original cost reversed)
Cost A/C CR (with the original cost reversed)

•Cost A/C DR (cost taken from new PO)
WIP A/C CR (cost taken from new PO)

==Scenario 6 - What are the entries made when a purchase order is cancelled?==

This is when the job has been billed to the client. Creation and modifications to PO before the job has been billed cause no accounting entries at all.

•WIP A/C DR
Cost A/C CR

==Scenario 7 - What are the entries made when the client is invoiced without any cost, and the cost is later added?==

•Client A/C Dr
Income A/C Cr

When the cost is added (i.e. PO is made):

•WIP A/c Cr (cost taken from the PO)
Cost A/c Dr (cost taken from the PO)

When the PO is converted to a PI:

•WIP A/C Dr (with the original cost – reversed)
Cost A/C Cr (with the original cost – reversed)

•Cost A/C Dr (with the new/original cost)
Supplier A/C Cr (with the new/original cost)

==Scenario 8 - What are the entries made when the purchase invoice arrives different from the purchase order and after the job has been billed?==

At the date of the purchase invoice NOT at the date of the purchase order or job period or the date of the invoice to the client.

•WIP A/C Dr (with the PO provisional cost – reversed)
Cost A/C Cr (with the PO provisional cost – reversed)

•Cost A/C Dr (with the actual PI cost)
Supplier A/C Cr (with the actual PI cost)

The net effect on cost is that the cost is amended by the descrepancy between the purchase order and the purchase invoice IN THE MONTH OF THE PURCHASE INVOICE.

Using NEOSYS Media System

2008-09-11T06:53:52Z

85.17.154.66:

Troubleshooting NEOSYS Finance System

2008-09-10T10:56:26Z

85.17.154.66:

[[Locating and correcting Exchange Gain/Loss A/c errors]]

[[Cross Check Balance errors]]

[[Cross Check Balance error on Retained Earnings Account]]

[[Moving accounts between ledgers]]

[[Explaining what the intercurrency conversion account is]]

[[Resolving opening balances in P&L account]]

[[Correcting mistakes in postings]]

[[Posting 0 Currency Amounts to Open Item Accounts]]

[[Solving Error - Index overflow - run Finance, Maintenance, "Clear Open Items"]]

Main Page

2008-08-01T18:56:50Z

85.17.154.66: /* User */

<big>'''This is the NEOSYS Wiki.'''</big>

== User ==

[[NEOSYS Reference]]

[[NEOSYS FAQ]]

[[Using NEOSYS]]