short note of foreign accounting

7/31/2019 Short Note of Foreign Accounting

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DE PAUL COMPUTER ACADEMYACCR.CENRE OF DOEACC.GOVT OF INDIA

ESTD: 1981, EDATHOTTY

SHORT NOTES:

DIPLOMA IN INDIAN &FOREIGN ACCOUNTING 2008

STUDIED SOFTWARES

EX-NEXT GENERATION

PEACHTREE COMPLETE ACCOUNTING

TALLY.9.0

DACEASY 10.0

Prepared by: shihab peravoor

Mob: 9605468349

Email: [email protected]@yahoo.com


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EX NEXT GENERATION

Note: If the stock is given in balance sheet, two entries should like the following;

1. Opening stock a/c drTo stock in hand (amount which given in balance sheet)

2. Stock in hand a/c drTo closing stock (total closing balance of items)(NB: do it if any adjustments is given)

To create ledger: Setup chart of accounts

Item creation: Setup select Items for creation

For balance sheet: Reports view balance sheet

Main accounts & corresponding types

Creditors suppliersDebtors customersBank bankCash cash

Shortcut Keys

F2 account selectionCtrl+A chart of accountsF12 enter documentsCtrl+I for itemsCtrl+T for narrationsCtrl+O open/ use the companyCtrl+G log off Ctrl+U user manager

To know the b/s, trial balance, p&l a/c ReportsFor tax & discount creation

Setup charges new(Enter the tax or discount ratio with % symbol and select appropriate category for tax ie.sst,vat, and .etc for discount select appropriate a/c and fill all fields and save the entereddata) Sales Tax Authority ID

Sales tax authorities are individual entities to whom you pay sales taxes (for example, citytax, county tax, state tax, or transportation tax). The sales tax authority ID identifies the


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sales tax Authority in lookup lists and reports. Enter up to eight alphanumeric charactersfor the tax authority ID. You may want to use descriptive ids such as city, state, or county.Note: Sales tax codes are made up of a combination of sales tax authorities and aretypically based on the locality of the sale. For example, your company may sell an item in ametro area that requires 6% sales tax (4% city, 1% state, and 1 % transportation). The sales

tax code combines the tax authorities to calculate a single percentage.

Sales Tax Code

Sales tax codes are made up of a combination of sales tax authorities and are typicallybased on the locality of the sale. The sales tax code ID identifies the sales tax code inlookup lists, sales transactions, and reports. Enter up to eight alphanumeric characters forthe tax code ID. You may want to use descriptive ids such as location.For example, your company may sell an item in a metro area that requires 6% sales tax (4%city, 1% state, and 1 % transportation). The Metro sales tax code combines the three taxauthorities to calculate a single percentage.


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8. Tax creation

Maintain sales tax sales tax authority (after filling the information)Maintain sales tax sales tax code (create appropriate sales tax code ie.s1, s2 .Etc..)

9. For export and import of datas1. Open the company (which have datas wants to export)2. Fileexport/importselect the datas to export select export icon i.e. Vendors

list, customers list.etc.)3. Open another company requires the exported data4. File import/export select the data to import which is already exported fromPrevious company import

NB: for easy payment of small expanses like phone bill, electricity bill,Maintain Memorized transactions create the items (expanses)

10. For estimating the cost of jobs ie.construction workMaintain job costs1. Cost codes create a cost code and select suitable cost type2. Phases create and fill the datas of cost phases3. Jobs create job id and job and fill other fields

To show the report: Reports job cost

11. For security /password protection

Maintain users create users like purchase, sales etc...(The purchase user may be the purchase manager or anyone from purchase department hecan only visit and deal the matters related to purchase only he cant see the matters relatingto sales .same as in the case of sales and other users except the main user he may be theCEO or MD of the company .He have the right to define the visible areas of each users.)NB: The users cant open the users menu (security setup menu) except MAIN USER ifdont tick the access option at the time of user creation).

12. Default settings (For editing or show the default settings)Maintain Default information select item to edit.I.e. If you want to edit the default discount rate select the category (customers/venders) andedit the default rate.

13. Finance charges

This option is used for charging finance charges for amount receivables (amount of creditsales) of the company if it is beyond a particular limit fixed by company.Through this option we can fix a credit limit and interest rate also.Example is given below in the case of a customer (credit sales)Maintain default info customers finance charges


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Setup the interest rate, time limit and credit limit before sales (setup interest rate abovethe given time period ) if the amount goes over to the given time limit the company mustcreate a interest rate and a minimum financial charge.Reports a/c receivable sales journal

If the date is over means the given time period is occurred the company can chargefinancial charges by;Tasks Financial charges press OK click YES to apply charges and select adestination press OK.Then it will show the amount and explanation about charging method.

14. Quotes (quotation /sales orders)

Tasks Quotes creates and save the quotesAt the time of sales we can easily convert the saved quotes (sales orders) in to sales

for that;

Task Quotes selects the item and chooses the option convert select the appropriateresult needed (to sales or to sales orders)

15. Select for payment: Task select for paymentIt is the option for payment through check. Mainly used for knowing bank balance afterpayments.Task select for payment select GL account as bank (specified bank)

16. Write checks (compound journal entry)It is the easiest way to enter payments means through compound journal entry system (onlyfor payments)For this follow the given steps;Task write checks enter the vendor ID (if paying to vendor) or enter the name ofexpense in pay to the order of column and select appropriate GL account(cash/bank...etc.) Of expenses.i.e. For Rent select rent a/cAnd select split option

17. Payroll

This option related with creation and payment of other expenses which is paid by thecompany to its employees with salary like Traveling allowances, DA, HRAetc...For this company should create the items by using the following steps;

Step 1. Maintain default info employees after finishing option (enter state codeetc) and select Pay levels add required Items under the correct GL a/c create if not haveGL a/c.And press OK.

Step 2. Maintain employees select a employee/create a new employee Pay infoenter the amounts here for created items


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After completing employee pay info choose; Task payroll entry and select appropriateemployee to pay and select correct GL a/cIf payment through check selects GL a/c as bank, select cash in hand for cash payment.

18. Time / Expense

For calculating employees working hours we can use time /expense optionTask Time/expense time tickets/expense tickets

19. Inventory adjustments

If the company wants to adjust their stock which is increased or decreased by theft or lossby fire.Task inventory adjustments select item fill other options enter the quantity in thecolumn with appropriate symbol

For an adjustment-up,

You will enter a positive quantity and can also enter a unit cost. This will increase your

quantity on hand and total inventory value much as a purchase would. You could use anadjustment-up if you previously miscounted your inventory and now have more units onhand than you thought you had.

For an adjustment down,You will enter a negative quantity, but you can't enter a unit cost. Peachtree will figure out

the cost value that these units are being removed at, much like a sale. An inventoryadjustment-down will decrease the quantity on hand as well as the total value. You coulduse an adjustment-down if something was stolen or for breakage or if inventory waspreviously miscounted or if you used the item for a job. When you make an adjustment, theCost of Goods Sold, Inventory Total Value, and Inventory G/L accounts are all updated.

20. Assemblies

For assembling new goods from existing stock we works with this optionStep 1. Create items which are wanted to assemble for example: for assembling a computerwe should create all parts required for computer with opp stock.And create computer as assembly and selectBill of material select all parts required for making the desired product save itStep 2. Task assemblies item ID (computer) enter how much quantity we want tomake with available stock.Step 3. For report inventory item list

21. General journal entry

Tips for entering transactions through general journal entry system.1. If the cash is credit aspect selects GL account as pretty cash.2. If the cash is debit aspect selects GL account as cash on hand.3. Always create bank account under cash.

22. A/C Reconciliation


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If the firm have a bank account and the purchases and sales are doing by issuing cheque ofthis bank we can do the payments and receipts through a/c reconciliationStep 1. Task a/c reconciliation.NB: 1.This practicable only when a vendor/customer is created and a transaction is created.2. We can enter receipts through a/c reconciliation and also through receipts.

23. Void cheques

This is the option used for voiding a cheque issued by the company .if the companys banka/c doesnt have sufficient balance to convert that cheque in to cash we can void or cancelthe cheque by using this option.Step 1. Task void cheques.

24. Action items

It is a reminder setup for informing the meetings, calls, programmes etc in future forThis Step1. Task action items (set time and matters)Step2. Options action items startup ( ) the display option.

Analysis

It is the shortcut to know the status of the business in different fields.E.g.: cash manager: - to know details about cashCollection manager: - to know the total receipts.Payment manger: - to know whole payments.Financial manager: - to know details about financial datas.

25. Options

It includes option for setting some changes like colors and hides the GL accounts.NB: Always create drawings under equity doesnt clause

Tally 9.0

Voucher types


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This is the option for entering whole transactions of the businessGateway of tally voucher entry.The main voucher types are as follows.

1. F4-Contra

It is the option for entering transactions which related to bank and cash only ( thetransactions which have cash and bank as debit/credit aspects ) mainly1. Bank to cash2. Cash to bank3. Bank to bank (transfer) etc

2. F5-Payments

For entering all types of payments (cash/bank) we can use this type of voucher .paymentslike .salaries paid, rent paid, cash paid to supplier

3. F6-Reciept

Through this we can enter all types of receipts (bank/cash) like introduction of capital,building rent, cash from customer, commission receipts etc

4. F7-Journal

This is the option for entering all type of transactions

5. F8-Sales

This is the option for recording sales transactions .we can enter the sales and purchasetransactions in two methods they are invoice format (which includes all details of items andquantity etc...Press ctrl+v for changing invoice format to journal format and for journalformat to invoice format) and journal format (normal method).

NB: at the time of sales / purchase enter the unit symbol with quantity if you are usingmultiple units means an item which purchasing in numbers (nos) and selling in dozens(doz)

6. F9-Purchase

This is the voucher for entering purchase transactions .it is possible in two differentmethods mainly in invoice format and journal format.

7. Ctrl+F8- Credit note (sales return)

It is the option used to record the transactions about sales return in other words returninward*if the option is not active press F11 from the voucher menu and set YES for the optionAllow debit note and credit noteit also possible in invoice format and journal format.

8. Ctrl+F9- Debit note (purchase return)

It is the option used to record the transactions about purchase return in other words returnoutward.


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*if the option is not active press F11F1 from the voucher menu and set YES for theoption Allow debit note and credit noteit also possible in invoice format and journalformat.

9. Stock groups/category

Sub groups:Inventory info stock groups create (under primary or desired group)For stock category:

*if stock category is not displayed in the inventory info press F11 from the gateway of tallyand select inventory features press F2 set Yes for the option Maintain stock category.

10. Tax

If any item have sales tax record it when the item is creating for example if the itemcomputer has 5% tax it should be shown in the item and follow given steps

Step 1. At the time of sales in invoice format from the End of list window create suitable

tax ledger under Duties and tax accounts (for example in the case of above givencomputer create 5%tax ledger ) and select suitable calculation method from the comingwindow means tax created on the item price/total sales etc

11. Godown

Press F12 and allow for the option Maintain godownsFor creation: gateway invent info create godownMainly a company has three types of godowns they are1. Main location2. Purchase godown3. Sales godown12. Transfer of goods from one godown to another (e.g. Purchase to sales)

Gateway a/c info voucher type alter stock journal set its class name asgodown or any name just for coming window (the name is not specified) and set YES forcoming option or window

After go vouchers press Alt+F7 (stock journal) and transfer items by choosingdestination godown and required items from another godowns.

13. For manual entering of Invoice number/Bill numberA/c info voucher types alter select required voucher types (mainly purchase/sales/payment/receipt etc

14. Discount allowed

Trade discount Amount will be givenCash discount Percentage of discount will be given15. For trade discount

The basic procedures same as tax creations procedureWhen doing sales from the end of list column and enter the amount with (-) symbol


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16. For showing (%) window for discount

F11 F2 (inventory features) separate discount column Yes

17. Cost center (for sales ex: or agents)

It is the option used to record payments made to the sales executives, sales agents

Step 1. Press F11F1 and set YES option for Cost centers and categoriesStep 2. Create agents or persons name on cost centers

18. Purchase orders & sales orders

F11 F2 purchase order & sales orderYES

Gateway of tally voucher entry

Alt+F4 purchase orders

Alt+F5 sales orders

NB: at the time of sales select appropriate order number from the coming window.

19. Assemblies

Step1. Press F12 at the time of item creation (which item we want to assemble by usingparts for example we need computer as finished item press F12 at the time of creation)Step2. Set YES for the option Allow component list detail.Step3. For AssemblingA/c info voucher types alter stock journal (change this to manufacturing journal) set YES for the option use as manfg journal

Alt+F7 Manufacturing Journal

20. Bill-By-Bill

Maintain bill by bill option is available for ledgers especially sundry debtors and sundrycreditorsIt is a method of payment which is carried out the payment against the previous billsoutstanding or previous bills receivable respectively.

21. Multi currency

Step1. F11 Company featuresSet Allow multi currency as YES and create currency from a/c info with appropriatesymbol example: for dollar ($)Step2. Select suitable currency for creditors and customers (when it is required)(If the value of currency changed we can update it by using alter menu)

22. Forex gain/loss

The value changes of currency at the time of sales or receipt may cause to the companymay have forex gain or loss in the present financial year the forex gain/loss can adjustthrough the following steps


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Adjustment

Step1. Voucher creation alter journal class name (give any name for the comingwindow) set YES for the coming window.Step2. Post a journal entry by selecting account as Profit&Loss a/c and use amount which

is changed (forex gain/loss)

*Ctrl + Enter for editing ledger at the time of sales or purchase

* In tally always create drawings ledger under capital a/c as CR aspect.

.

OPTIONS (F11)F1 A/c featuresF2 Inventory featuresF3 statutory features


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F11 F1 A/c features

1. For showing p&l a/c as income and expenditure a/c Set YES the option for non

trading account.2. Interest calculation

For calculating interest on debtors or loan set the option of interest calculation YES(If the rate changing in future set the option Advanced parameters as YES)NB: Create interest rate at the time of ledger creation with the time period andcalculation method.For calculation

Display statements of a/c interest calculation ledger F2 change the date tothe transactions entered and calculate the interest for desired period.

3. Payroll (Payment to employees ie.Ta, DA, PF, HRA)

Step.1.F11 a/c features Set YES maintain payroll and set YES for the option Morethan one payroll/ category.Step2.

Gateway Payroll info pay heads create the needed items (TA, DA)With suitable calculation method (PF is deduct from employees salary)

If a constant rate select Flat rate.

In the case of user defined value the entering of amount is only possible when thepayment is doing.

Step3.Creating employees/groups

Gateway payroll info employees create employees with details.Step4. For setting payment to each employees.

Gateway payroll info salary details Setup payment items to each employee.Step5. For payment of salary with expenses.

Gateway payroll vouchers A (Alt+A) for auto fills select date andemployee from the coming window enter the amount save/ok.

4. Maintain cost centers

After creating employeesF11 a/c info set YES for Maintain cost centers Set YES for Use pre-defined costcenter allocation during entry.(set this option after creating cost centers /employees and

categories ) Set percentage for each employees(cost centers)For payment

A/c vouchers payment (the amount will be distributed according to the percentagealready set.

5. Budget

Step1. F11 a/c features Set YES Maintain Budgets an controlStep2. Gateway a/c info Budgets Set Groups YES select a/c name and type ofbudget and enter amount for each expenses,


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Step3.Select YES for ledgers also and select appropriate ledger.Step4.For payment a/c info F5 payment.Step5.For DisplayGateway Display trial balance Alt+B.

6. Reversing journals and optional vouchers. .

F11 Set YES for the option Reversing journals and optional vouchers.

A).optional vouchers

It is the option for hiding transactions (receipts, payments, and journal) for posting in future.i.e. Telephone bill, .etc...Gateway a/c vouchers select a type of voucher (receipts, payments, and journal)press Ctrl+L to set optional and posting.To show the optional entry

Display exception reports optional vouchers

For postingSelect optional entry press enter key press Ctrl+L for changing in to ordinary entryand set posting date ok/save.

B).Reversing journals.

It is a type of journal posting for deducting expenses from the actual content of items.I.e. Depreciation deduct from fixed assets.Step1. F11 Set YES for the option Reversing journals and optional vouchers.Gateway a/c info scenarios create the deducting item (depreciation, baddebts.etc) include reversing journal entries and save it.Step2.Gateway a/c vouchers F10 (Reversing journal) enter the reversing entry (i.e.In the case of depreciation of a machinery the entry will be Depreciation a/c Dr Tomachinery) set starting date save/ok.Step3.For display

Display trial balance For showing the deducted item press Alt+C fill the details(mainly the date of depreciation or other items started to calculate) valuation method asDefault Type of value to show as deducted item (depreciation, bad debts)

F11 F2 Inventory features

1. Maintain batch-wise details.

It is the option for setup manufacturing and expiry date of items.Step1. F11 F2 set option YES Maintain batch-wise details.We can enter the date (mnfg/exp) at the time of purchase.


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Gateway a/c vouchers purchase select items enter the dates in coming window.NB: Set YES for the option Maintain batches of each items at the time of item creation.Step2.For display the items and dates.Gateway display invent books ageing analysis primary (groups) for changingthe date ordermanfg/exp in to exp/manfg press Alt+S and select desired date.

2. For setting discount for each itemBased on quantity selling:Step1.

F11F2 set yes for use price levels. And create price level groups of sales(wholesale and retail etc)

After item creation (if it have stock)Gateway invent info price list select price level group Set rate for each itemStep2.At the time of sales selects the appropriate price level and save/ok

shihabshihab 15 7/19/2012

short note of foreign accounting

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