inforln.com erp ln finance concepts overview training

2Copyright © 2012. Infor. All Rights Reserved. www.infor.comCopyright © 2012. Infor. All Rights Reserved. www.infor.com 2

Infor LN Finance Overview and ConceptsDan Aldridge, Senior Consultant, Infor

3Copyright © 2012. Infor. All Rights Reserved. www.infor.com3

Course Methodology

Lecture and Discussion40%

Hands-onPractice50%

MeasureResults10%

Practical Exercises

Demonstrations

Applicationof Concepts

BusinessConcepts

Review Questions


Student Guide Icons

Guided TaskComplete the steps with your instructor. Ask for assistance or ask any questions while completing the task.

Refer to the Student GuideWith your instructor, review the detailed information in the Student Guide.

Instructor DemonstrationWatch your instructor complete the steps, listening to the explanation. Generally, only one person can complete the activity.

Independent TaskDoes not provide detailed step-by-step instructions to follow. Complete the steps independently. Ask your instructor to assist you with any questions or problems.


Course Objectives

Upon completion of this course, you will have a general understanding of the processes and functionality of Infor LN Financials, and can recognize the concept of the financial integrations with Operations Management packages.


Agenda• Lesson 0 Getting Started• Lesson 1 Common Financials Data• Lesson 2 General Ledger• Lesson 3 Accounts Payable• Lesson 4 Central Invoicing & Accounts Receivable• Lesson 5 Cash Management• Lesson 6 Fixed Assets Management• Lesson 7 Controlling• Lesson 8 Financial Statements• Lesson 9 Financial Integrations


Lesson 1–0Common Financials Data


Building a Company in LN


Departments

Warehouses

Bus. Partners

Projects

9

Enterprise Structure Model


• Several separate production companies are controlled in separate financial companies

Finance 2

Factory B

Factory C

Finance 3

Factory A Finance 1

GroupCompany

10

Multi-Company


Defining organization - Enterprise Units

Logistic company 100

EU 1 EU 2

Finance Company 100 Finance Company 200

Plant 1 Plant 2

11


Enterprise Units

Logistical company100

Financialcompany

200 Financialcompany

300

EnterpriseUnit (Location 1)

EnterpriseUnit 2(Location 2)

SO

PO

PP

SOPP

WHWH

SO

PP

PO

WH= Warehouse

= Production plant

= Purchase office

= Sales office


Currency Systems

CAD

Reference EUR

EURUSD

Dependent

BRL USD

CAD

Independent

External CAD

Local/Reporting USD

Single

* New in FP5: Standard


Structure Common Data

Company Employee

Addresses B.P.

Sub-entities

Item Base Data General Data

Calendars EMM

Tables: Logistic / Financial/ Taxes CommonData

14


Pay

To

Invoice

From

Pay

By

Invoice

To

Supplier

RolesCustomer

Roles

Business Partner• All supplier and/or all customer roles must be defined for a business partner

Business

Partner

Business

Partner Invoice

To

Ship

To

Pay

By

Pay

To

Invoice

From

Ship

From

Sold

To

Buy

From


Business PartnerCharacteristics

Business Partner

NumberGroup #’s

Addresses

CurrencyContacts

Banks Financial Business Partner Group


for Customers for Suppliers

Financial Business Partner Group

Purpose

To group similar customers or supplier

To assign ledger accounts and dimension codes for semi automatic entries; based on pre-defined events generating transactions for those groupings

Multiple control accounts per business partner

Note. Every business partner must be linked to a FBPG via the business partner roles


Tax Codes

18

High VAT

Country

Low VAT

Tax CodesNetherlands

HST

GST

Canada

PST

19 %

6 %

5 %

2 %

Ledger Accounts

Purchase Tax

Sales Tax

Shifted Tax

Sales LA

Purchase Tax

Sales Tax

Shifted Tax

Sales LA

Infor LN Financials


Modeling Tax Scenarios Exceptions

Applications

Tax Defaulting Library

Standard Tax Library

Tax Exception Library

Destination Sales Tax

Customer can define tax scenario for specific situation

Applications call tax dll. There, first checked if for that situation a tax scenario is modeled. If yes, data from there is taken, otherwise, the standard ERP tax function is used


Independent Task: Common Financials Data

• Check the enterprise model• Create a new currency rate• Add a terms of payment• Business partner group• Add a customer• Insert a new tax percentage


Infor LN FinancialsOperations Management Packages:•Order Management•Warehouse Mgt.•Manufacturing•Service•Project•Freight• People

DIM 5DIM 4

DIM 3DIM 2

DIM 1

General Ledger

Accounts Receivable

Fixed Assets MgtCash Management

•Central Invoicing

Financial Statements Controlling

Budgeting Cost Accounting

Accounts Payable

CPR

BP


Lesson 2–0General Ledger

Financial Concepts & OverviewInfor LN



Operations Management Packages:•Order Management•Warehouse Mgt.•Manufacturing•Service•Project•Freight• People

Infor LN Financials

DIM 5DIM 4

DIM 3DIM 2

DIM 1

General Ledger

Accounts Receivable





Accounts Payable


Multiple Business Unit Financials

Enterprise xEnterprise 2

Enterprise 1

Financial Group

Sales Production …

BusUnit ProjectRegion

ProductLine …

General Ledger level

Dimensions


Chart of AccountsExample

DepreciationCosts

C1MaintenanceCosts

C2Direct WageCosts

C3Indirect WageCosts

C4

Production CostsP

Machine CostsP1

Wage CostsP2


Sales

New

Existing

Repair

Other

• Chart of Account Types:• Balance Sheet

• Income Statement

• Inter-company

• Text

• 12 Alpha/numeric characters• Parent/Child Relationships• 99 levels of subtotals• Integration account• Quantities• Currency base• Matching• Blocking• Statutory versus Complementary• Daily and BP balances

Chart of Accounts


Parent – Child Relations

C1

C2

C3

C4

C5

C6

C7

P

P1

P2

P3

DIM 1

DIM 2

DIM 3

DIM 4

DIM 5

DimensionsDimensions

P

P3

P2

P1

C1

C2

C3

C4

C5

C6

C7

Ledger AccountsLedger Accounts

C = ChildP = Parent


Enter Transactions

Transaction Entry Date

Date 10/01/2006

Fiscal year 2006Fiscal Period 04Reporting Period 01Tax Period 02

Batch number 416

Transaction Type

GLD Journals (Detailed)API Purchase Invoices (order)CBD Bank Transactions (Detailed)

Journal VoucherInvoices (pur / sls)Credit notes (pur / sls)Opening balanceCashPurchase / Sales Corrections


• Maintain Transaction (New: Transaction Entry)• Enter Batch Header*• Enter Transaction Type*• Enter Line Details

• Print Non-Finalized (optional)• Finalize Transaction• Finalization Administrator

Cre

ate

/ Adj

ust

Prin

t & R

evie

w

Post to G

/L

Same for G/L, ACP, ACR & CMG

*All transactions are created with a Transaction Type and processed in a Batch

Transaction Processing Summary


• Transaction Type = user-defined; 3 alphanumeric characters• Series Code = categorizes all transactions of a given type; up to 4 alphanumeric characters• Last-Used Number = system generated sequential #; balance of characters where sum of

series # + first free # is 8 characters

TransactionType

SeriesCode

Last-UsedNumber

API 2004 0001 API 2004 0001 GLD 10 000001 GLD 10 000001

Financial Document Numbers


Inquiries & Reports

Finalization Run #UPDATE

---------Batch 5

---------Batch 4

---------Batch 3

--------Batch 2

Batch 1

STATUS

‘Non-finalised’

STATUS‘Finalised’

Transaction Processing


Production costs

LE

DG

ER

-AC

CO

UN

TS

P

Machine costs Labour costsP 1 P 1

Depreciation costs

Service costsC1 C2

Direct Labour costs

Indirect Labour costs

C3 C4

DIM

EN

SIO

NS

Production Department

Tables

Assembly Department

Chairs

C10 C11

C12 C13

Drill Down


15%

20%

35%

5%

25%

Transaction Schedules

To distribute costs to ledger accounts, based on either amounts or percentages, from a predefined schedule.

Enter transaction schedule decide if amount or percentages currency

Enter transaction schedule details actual amounts or percentages by ledger accounts & dimensions


• Example: when salary expenses are recorded on Transaction Type xx, automatically generate an entry for 18% benefit expenses to predefined accounts

Automatic Transactions

To generate automatic transactions for additional costs based on a combination of transaction type, ledger account and sequence number.


Reverse Entries

Journalzzzzz Dzzzzz Crzzzzz D

Finalized Transactions

Non-Finalized Transactions




Journalzzzzz -Dzzzzz -Crzzzzz -D


• Journals, Sales, Purchase• Recurring Instructions• Generate recurring entries

Recurring Transactions

Period 1Period 1 Period 2Period 2 Period NPeriod NTodayToday

To process entries that are prepared and/or reversed automatically over multiple periods. Can be changed!


Debit Employee advances Credit Employee advances

$500 $500

GL Account Matching

• Match debit and credit postings on the same ledger account with each other

Useful for intermediate accounts Suspense accounts Personnel advances


Cash-Receipt Note

Date: 1-1-2001Amount: $50 CashEmployee: Johnson

Statement of Expenses

Date: 5-1-2001Amount: $30 DinerAmount: $20 Cash ENTEREmployee: Johnson

(D) Advance Payments Employees 50(CR) Cash 50

(D) Cash 20(D) Diner Expense 30(CR) Advance Payments Employees 50

GL Account Matching

(D) Advance Payments Employees $50(CR) Advance Payments Employees $50

GL Account Matching


Periods

Period Status Close Periods

Open

Closed

Finally Closed

To aggregate transactions over time in fiscal, reporting or tax periods within Infor LN Financials


Independent Task: General Ledger

• Create a ledger account• Create dimensions• Check transaction types• Add a journal voucher• Finalize transactions• Analyze ledger history• Close a period• Case: General Ledger


Lesson 3–0Accounts Payable





Infor LN FinancialsRelations Accounts Payable

DIM 5DIM 4

DIM 3DIM 2

DIM 1

General Ledger

Accounts Receivable





Accounts Payable


Pay from receipts (Self-Billing)Payment SchedulesProblem Invoices and Business Partners

ACP Processes

Receive and Authorize Invoices Fast and friendly invoice entry based on order or

packing slip data Matching and Approving

Matching based on order or packing slip data Automatic matching Invoice approval by batch


Purchase Invoices

Register invoices

PurchaseInvoicePurchaseInvoice

Automatic depends onparameters ACP:•Automatic matching•Tolerances

Matching with an purchase order

Approve purchaseinvoices

Finalise transaction

Link with a Ledger Account

Maintain received purchase invoices

Approve receivedpurchase invoices

Copy

Optionalfunction

Open entriesOpen entries


Self Billed Invoice

Register Invoice

Approved for Payment

Automatic Match

Purchase Order

Chairs USD 50000Tables USD 10000

No. 123Invoice Date: 12-01-2004

Total USD 60000


Hold Reasons (Blocking Codes)

Hold reasons can be linked to purchase invoices explaining why the company does not want to pay the supplier’s invoice.

Purchaseinvoice

Hold Reason:‘Goods damaged’

Assigned Approver:Purchase manager

Blocked for automatic payments


Procurement Card Payments

Purchase RequisitionHoliday Inn hotel EUR 850

Lufthansa EUR 1,400

ManuallyElectronically

Holiday Inn hotel EUR 850

Lufthansa EUR 1,400

EUR 2,250

ManuallyElectronically

Match•Manually•Automatically

Open entry AP

Visa company 2,250


Supplier Statement of Account

Invoice

Invoice-FromStatement Account

Supplier Statement AccountDear supplier, Our finance department does have the following invoices outstanding.Please check with your administration if this is correct.

Invoice Date AmountP01-001 12-01-01 EUR 100P01-087 18-01-01 EUR 125P01-180 27-02-01 EUR 85

Best Regards,Standard.COM company.


Independent Task: Accounts Payable

• Register a cost invoice• Automatic purchase matching• Check received orders• Match a purchase order and invoice• View the Accounts Payable Management

Dashboard


Lesson 4–0Central Invoicing & Accounts Receivable





Infor LN FinancialsRelations Accounts Receivable

DIM 5DIM 4

DIM 3DIM 2

DIM 1

General Ledger

Accounts Receivable





Accounts Payable


Accounts Receivable Control

Accounts ReceivableWithout an invoice

Finalisation inGeneral ledgerFinalisation inGeneral ledger

Open entriesOpen entries

RemindersCustomerstatements

Central Invoicing

Manual Sales Service Project Interest Freight

Aging Analysis


Central InvoicingProcedure

Select invoice lines Billing Request

Billing Request AdditionsBilling Request Template

Invoice

Lines to be invoicedSalesOrder

ServiceOrder

Project Manual Interest Freight


Central InvoicingExample

SalesOrder

SalesOrder

SalesOrder

Manual Invoice

SalesOrder

ServiceOrder

Billing Request Template 01Sales Orders Yes Manual Sales Invoices No Service Orders No More than one Sales Order Yes More than one BP Yes

Use template 01 Sold-to BP ….. To zzzzz Sales Order ….. To zzzzz

Billing RequestBilling Request Template 02Sales Orders Yes Manual Sales Invoices No Service Orders Yes More than one Sales Order Yes More than one Service Ord. Yes More than one BP Yes

ComposeSalesOrder

Sales Orders BP BB

Sales Orders BP AA

Sales Order Yes Manual Sales Yes Service Order Yes

Confirmation of Order Data

v v vSI ARI-20040010To customer AA

10 Laptops 10.000 euro

SI ARI-20040011To customer BB

10 Laptops 10.000 euro Order SNS-1400005 PCs 4500 euro Order SNS-140036

Order SNS-140000


Sales Invoice Characteristics

The following information defined in the Invoice-To business partner setup is of key importance to the way the Accounts Receivable module behaves and works:

Language - Documents can be sent in the language of the customer.Group - Financial Business Partner Group of the Invoice-To business partner determines which ledger accounts are used for transactions.Credit Limit - A preset maximum limit for the total value of outstanding amounts for the customer is established in the Invoice-To business partner setup.Terms of Payment - The length of time the customer is allowed before payment becomes overdue is established in the business partner setup.


Aging Analysis Codes

30 days No action required yet.

60 days Send a reminder letter.

90 days Instruct the legal representatives to intervene.

Aging analysis codes allow for the generation of reports and statements that summarize customers accounts based on the number of days or month that the invoices are overdue.


Statement of Account Customers

Invoice

Customer Statement AccountDear customer, Our finance department does have the following invoices outstanding.Please check with your administration if this is correct.

Invoice Date AmountS01-001 12-01-01 EUR 100S01-087 18-01-01 EUR 125S01-180 27-02-01 EUR 85

Best Regards,Standard.COM company.

ToStatement Account


Reminders

InvoicesText number ofthe last reminder

Options:

S05 99000008

S05 99000012

S05 99000027

1

2

1

Business Partner

1000

1000

1000

(A)

2

2

3

(B)

1

1

1

(C)

3

3

3

A) - “Standard” Reminder Letter Processing þ

B) - “Same Letter for All Statements þ 1

C) - “Group all Letters Under Highest þ

(D)

2

2

2

D) - “Restrict Highest Letter No.” þ 2


Factoring

Standard.COMcompany

Customer

Factoring company

1. Order

2. Agree customer limit

3. Deliver goods and invoice with notice to pay to factor

4. Send invoice copy5. Pay advance 6. Follow up

7. Payment

8. Balance payment

A form of accounts receivable financing that consists of the sale of a company’s accounts receivable to a third party (factor), in order to obtain funding.


Independent Task: Central Invoicing & Accounts Receivable

• Create billing request template• Create a manual sales invoice (direct processing

and no direct processing )• Create an aging analysis code• Check the customer invoice aging analysis• Create a customer statement layout• Print a customer statement


Lesson 5–0Cash Management





Infor LN FinancialsRelations Cash Management

DIM 5DIM 4

DIM 3DIM 2

DIM 1

General Ledger

Accounts Receivable





Accounts Payable


Payment Methods

Supplier payments

Type of Payment/Receipts Payment steps Payment postings

Customer receipts


Documents

Payment advice

Supplier Payment ProcessSelect invoices forpayment

Trade Noteprocess

Automatic paymentprocess

File

Documents

Automaticmatching

Electronicbank statement

Manualbank statement

Reconcile

Change Trade Notestep

Open entries


Process paymentsProcess payments

Select invoices for paymentSelect invoices for payment

Maintain paymentadviseMaintain paymentadvise

FileFile

DocumentsDocuments

Open entriesOpen entriesAutomaticmatchingAutomaticmatching

Electronicbank statementElectronicbank statement

Automatic Payments

Assign Banks

Audit Payments

Create Payment Orders

Remittance Letter

Post Payments


Cash Forecast

Purchase Orders

Project Orders

Sales Orders

Sales Quotes

Budgets

Standing Orders

Cash Forecast

Sales Invoices Supplier Invoices

• Update business partner status• Modify cash dates• Update cash forecast


Independent Task: Cash Management

• Add payment authorization• Create an automatic payment• Customer receipts• Reconcile a payment


Lesson 6–0Fixed Assets Management




Fixed Assets

Investment 125,000Adjustments 10,000 Disposal 100.000 Revaluation 15,000

Depreciation 50,000

Investment Depreciation Disposal Adjustment Revaluation

Asset Management


Group

Category

Asset Asset

Category

Asset Asset

Asset Structure


Independent Task: Asset Management

• Create an asset• Capitalize an asset• Depreciate an asset• Dispose an asset


Lesson 7–0Controlling




Controlling

Production department

Buildings Inventory Salary costs Energy costs Sales costs Revenues ………

Account Budget1 mio 300.000 500.000 17.000 50.000 2.5 mio ………

1.1 mio 350.000 600.000 20.000 45.000 2.4 mio ………

ActualWarehouse department

Buildings Inventory Salary costs Energy costs Sales costs Revenues ………

Account Budget1 mio 300.000 500.000 17.000 50.000 2.5 mio ………

1.1 mio 350.000 600.000 20.000 45.000 2.4 mio ………

ActualFacility department

Buildings Deprec. costs Salary costs Energy costs Inerest costs ………

Account Budget1 mio 50.000 40.000 11.000 70.000 ………

1.1 mio 45.000 60.000 10.000 72.000 ………

Actual

FACFIN

PUR

PROD

WRH

PLA

SLS

QM

Cost Allocation

Allocated costs 171.000-

Production department

Machines Depr. Salary costs

Account Budget100.000 25.000 100.000

Allocated costs 35.000

TOTAL COSTS 260.000Machine hours 10.000 26

RateOperations:• Painting (3h)• Assembling (2h)

Operations:• Painting (3h)• Assembling (2h)

MEMCase Disk

Controlling is the coordination tasks of budgeting, auditing, and providing information to improve business procedures in organizations.



Infor LN FinancialsRelations Controlling

DIM 5DIM 4

DIM 3DIM 2

DIM 1

General Ledger

Accounts Receivable





Accounts Payable

CPR

BP


SalesPlan

Concept - Planning Cycle

ManufacturingPlan Resource

Plan ProductionPlan

Financial budget

Cost price

Evaluation actual data

Cost allocation


Ledger Account Dimension

Dimension Types

(1) (2) (3) (4) (5)DimensionDimensionDimensionDimensionA.

B.

E.

D.

C.

Ledger Account

Ledger Account

Dimension

Ledger Account Dimension Dimension

Dimension

Dimension Dimension

Examples:

Static Budget

• Defined in a horizontal way:


Reference Unit (cost driver)

DimensionReference Unit

(cost driver)

Flexible Budget• Defined in a vertical way:

Ledger Account Ledger Account Ledger Account Ledger Account Ledger Account


Flexible Budget

Facilitycost center

Wages

Temporary labor

Interest

€ 200,000

€ 110,000

€ 10,000

Allocate To (credit)

€ 0

€ 320,000

Productionoffice

Allocate From (debit) € 240.000

Allocate From (debit) € 80.000

Serviceoffice

DimensionPrimary ledger accountSecondary ledger account

10,000 machine hours

2,000 man hours

Rate: € 24 per hour

Rate: € 40 per hour


Independent Task: Controlling

• Create a static budget• Enter a cost budget


Lesson 8–0Financial Statements





Infor LN FinancialsRelations Financial Statements

DIM 5DIM 4

DIM 3DIM 2

DIM 1

General Ledger

Accounts Receivable





Accounts Payable

CPM / Reportwriter


Financial Statements

Ledger AccountLedger Account

Bank Loan

Accounts Payable

Acc. Depr. Automobiles

Offices

Acc. Depreciation OfficesAutomobiles

Financial Statement Account

Financial Statement Account

Fixed Assets

Total Assets

Liabilities


Financial Statements Architecture

Infor LN

Infor LN LN

FinancialsGLD and FBSinformation

FinancialStatementdefinition

FSTInterimTables

FSTInterimTables

FSTreportingtables

Export sessions

ODBC

Infor CPM


Lesson 9–0Financial Integrations




Financial Integrations. Why?

10pcs

5pcs

8pcs

1pcs

Physical world of goods movements

Financial world of periods, ledgers and debit/credit balances

customer

supplier

adjustments

adjustments

Finan

cial in

teg

ratio

n / R

eco

ncilia

tion

invoiceinvoice

invoiceinvoice

SFC Production INTERIM TRANSIT SFC WIP Issue Subcontracting INTERIM VARIANCE Purchase Price Variance Operation Costs Operation Costs WIP Transfer Issue WIP Transfer Issue Invoiced

INTERIM SFC WIP Cost of Goods Sold Cost of Goods Sold WIP Transfer Receipt INVOICE ACCRUAL SFC WIP Turnover WIP Transfer Receipt Invoiced Completion Revenue Analysis Surcharge Cover SFC WIP INTERIM TURNOVER Item Surcharge Receipt INTERIM VARIANCE INTERIM TRANSIT Add. Calculation Office Variance Efficiency Variance Price Variance Receipt


Concept Financial Integrations

posting data

posting

FinancialsFinancials

OperationsManagement

drill down

drill down

Reconciliation data

Financialintegrations drill down

drill down

drill down

drill down

drill down

logging

logging


• Example, goods receipt

Integration Mapping Scheme

IDT = 10061074 – Warehouse Receipt/Receipt IDT = 10061074 – Warehouse Receipt/Receipt

D) 70100 – Inventory Amsterdam 10,000D) 70200 – Inventory Berlin 5,000 C) 28001 – Interim Transit 15,000

D) 70100 – Inventory Amsterdam 10,000D) 70200 – Inventory Berlin 5,000 C) 28001 – Interim Transit 15,000

€

€€

Detailed mapping

Default mapping


• Item

• Item Group

• Product Line

• Product Class

• Manufacturer

• Project

Integration Elements

Business Object = Inventory Transaction Business Object = Inventory Transaction

• Enterprise Unit

• Calculation Office

• Department Type

• Business Partner

• Country

Example, warehouse receipt


Warehouse Mgt.

Manufacturing Project ServiceOrder Mgt.

Financial Integration Process

Freight Mgt.

People

Integration logging Reconciliation logging

Integration mapping

Operations Management

Integration tables

Integration posting

General Ledger

Finalized transaction

Non-finalized transaction

Central Invoicing


ReconciliationExample invoice accrual 3

Goods Received, Not Invoiced

500

Purchase Order

500 Euro

Operations Management

Financials

500

Purchase Invoice

500 Euro

ReconcileReconcileAccept (reconcile) the accrual transaction !


Reconciliation Groups

The following reconciliation groups are created by Infor LN: Inventory Consignment inventory Invoice Accrual Consignment accrual Project provisional revenues

WIP Production order Project (PCS) Assembly order Assembly line Service order Service call Maintenance sales order Maintenance work order Project (TP)

Interim Costs Revenues Turnover Contract Variance Transit

End account


Independent Task: Financial Integrations

• Find active mapping scheme• Find an integration mapping• Map and post integration transactions• Drill down from Ledger History• Find reconciliation elements• Analyze the inventory• Accept reconciliation data


For more information go to:http://inforln.comwww.performaapps.com

Contact: Dan Aldridge, CEO Performa Apps – Infor Services Partner

703.251.4504 or [email protected]

http://inforln.com/

http://www.performaapps.com/

inforln.com erp ln finance concepts overview training

Software

infor ln finance overview

finance company

controlling lesson

started lesson

financial statements

agenda lesson

cash management lesson

accounts payable lesson