...Meeting your accounting needs through ADempiere Account Payables As part of ERP implementation, we have come across a lot of simple as well as complicated demands from the customer. While Walking Tree has been successfully customizing Adempiere for its client, we intend to share some of our experience over here to enable the customer as well as development community to make effective use of Adempiere. As part of this article, we will explain how Adempiere can be used to manage account payable (which will be suitable for Indian businesses) for a typical business organization. Well, when we talk about account payable, often we think about following terms Miscellaneous payment option against invoice without POs Capability to define payment schedules of invoice Multiple modes of payment Tracking over invoicing, return of products etc. through debit and Credit Notes Capability of putting invoice/payment to specific vendors on hold Accounting for over-payments, refund, claims etc Accounting of service contract payments e.g. transport canteen, casual hostels ,utility bill payments for water, electricity, etc.. Printing of cheques Adjustment of dues from suppliers against past supplies on account of rejection etc. Statutory tax statements and payments (India-specific) Two/Three/Four-way invoice matching within AP as well as AR Now let’s look at them one-by-one and see how Adempiere can be used to meet these needs. Miscellaneous payment option against invoice...
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...PROCESS ANALYSIS ESSAY OUTLINE I. Introduction – Thesis and Identification of the subject A. The essay will be about entering payables in the Accounts Payable System at work. B. The purpose of the instructions is to give the reader a step by step understanding of the process of entering invoices into the payables system. These instructions can be used as a reference point for anyone who would be working with me at my office to take care of Accounts Payable. C. (The essay will be in step by step format and will conclude with successful entry of an invoice in the Computer Ease System for payment on the date that they system selects based on the entry criteria). II. Body: The steps of the process and the development of those steps A.Step One 1. From the main menu of the Computer Ease Program, select the Accounts Payable Option. In the submenu that appears select “Enter New Invoice”. From this menu a pop up window will appear that will give you the form with fields that must be filled out to complete the invoice. 2. Be careful to select the correct option, as the other options do not give you the ability to enter new invoices into the computer system. B. Step Two 1. In the Vendor Name field press the F2 key and look up the Vendor Code by the Vendor Name, for example, if the invoice is for Staples, then key in the word Staples. A list of Vendors will appear and you will select the correct on. The Vendor Code is the first three letters of...
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...Differences and Importance of IPPS, OPPS, MPFS and DMEPOS The inpatient prospective payment system (IPPS) is a payment system that includes the cases of diagnosis-related groups (DRGs) as acute care hospital inpatients. It is based on resources that are used to treat Medicare recipients in those groups. Each DRG has a payment weight assigned to it, based on the average cost of treating patients in that DRG. IPPS plays an important role in deciding all hospital costs including the costs of all devices for treating the patient during a particular inpatient stay (CMS. Gov, 2012). On the other side, the outpatient prospective payment system (OPPS) is regulated for different outpatient service groups as ambulatory payment classifications (APCs). Outpatient services in each APC are similar in terms of clinical aspects and required resources. In addition, the APC payment rate for each group is wage adjusted to justify geographic differences and applied to all services in the group. In this, hospitals get a fixed amount for all outpatient services based on ambulatory payment classifications. Apart from this, Medicare uses it to reimburse physicians and other health care providers for the services and items that are not part of prospective payment systems (Herbert, 2012). A medicare physician fee schedule (MPFS) determines the payment rates for physician and therapy services that are based on relative value units, conversion factors and geographic practice cost indices. ...
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...in the way purchases are authorized. | Manufacturing firms | Merchandising firms | Purchase authorization | Production planning and control function | Inventory control function | Monitor inventory records The inventory control monitors and records finished goods inventory levels, when inventories drop to a predetermined reorder point, a purchase requisition is prepared and sent to the prepare purchase order function to initiate the purchase process. Prepare purchase order The prepare purchase order function receives the purchase requisitions, which are sorted by vendor if necessary. Next, a purchase order (PO) is prepared for each vendor. A copy of the PO is sent to the vendor. In addition, a copy sent to the set up of accounts payable (AP) function for filing temporarily in the AP pending file and a blind copy is sent to the receive goods function, where it is held until the inventories arrive. The last copy is filed in the open/closed purchase order file. Receive Goods The next event in the expenditure cycle is the receipt of the inventory. Goods arriving from the vendor are reconciled with the blind copy of the PO. Blind copy contains no quantity or price information about the products being received. This is an important device to verify the quantity and condition of goods. Upon completion of the physical count and inspection, the receiving clerk prepares a receiving report. One copy of the receiving report...
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...TOPIC) Topics 1. Concept of liabilities; definition and classification of current liabilities. Accounts and notes payable; dividends payable. Short-term obligations expected to be refinanced. Deposits and advance payments. Compensated absences. Collections for third parties. Contingent liabilities (General). Guaranties and warranties. Premiums and awards offered to customers. Self-insurance, litigation, claims, and assessments, asset retirement obligations. Presentation and analysis. Questions 1, 2, 3, 4, 6, 8 7, 11 9, 10 12, 5 13, 14, 15 16 17, 18, 19, 20, 22 21, 23 24, 25 26, 27, 28 1, 2, 3 4 5 8, 9 6, 7 10, 11 13, 14 15 12 5, 6, 16 7, 8, 9, 16 13, 16 10, 11, 16 12, 15, 16 14 3, 4 10, 11, 13 5, 6, 7, 12, 14 8, 9, 12, 14 2, 10, 11, 13 9 6, 7 5, 6, 7 7, 8 Brief Exercises Exercises 1, 16 Problems 1, 2 Concepts for Analysis 1 2. 3. 4. 5. 6. 7. 8. 9. 10. 2, 16 3, 4 1, 2 1, 2 3, 4 2 11. 29, 30, 31 17, 18, 19 3 Copyright © 2010 John Wiley & Sons, Inc. Kieso, Intermediate Accounting, 13/e, Solutions Manual (For Instructor Use Only) 13-1 ASSIGNMENT CLASSIFICATION TABLE (BY LEARNING OBJECTIVE) Learning Objectives 1. 2. 3. 4. 5. Describe the nature, type, and valuation of current liabilities. Explain the classification issues of short-term debt expected to be refinanced. Identify types of employee-related liabilities. Identify the criteria used to account for and disclose gain and loss contingencies. Explain the accounting for different types of loss...
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...Small Business Management | | | | Table of Contents Question 1: 3 Full Absorption Costing: 3 Direct Costing: 3 Question 4: 6 ACCION USA Small Business Loans: 7 Mississippi Capital Access Loan Program 7 Ohio Mini-Loan Guarantee Program 8 Iowa Target Small Business Assistance Program: 9 Montana Indian Equity Fund: 9 Question 3: 9 Bibliography 12 Question 1: In the field of accounting, there are two different ways of allocating production and other costs to products and services. Full Absorption Costing: It is a managerial accounting cost method of expensing all the costs to products and services. Under this approach, products and services are charged with all the prime costs as well as fixed overheads. All the fixed manufacturing overheads are divided amongst products and services based on number of units of products produced, number of units of labor used or amount of administrative expenses incurred on respective products/services. Generally Accepted Accounting Principles (GAAP) requires it for external reporting purposes. It helps in calculation of taxes and generating sales reports. It is an important technique to determine whether retail prices of a company reflect its full absorption costs. It is also important for such companies, which do not have deep pockets, and allocating all the overhead costs on products/services is extremely necessary to determine cost of their products. Direct Costing: It is a technique more suitable for internal...
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...Liabilities The role of a liability and what it means to the business as a whole is different for every business. What remains the same is the definition. A liability is a company’s legal debts or obligations that arise during the course of business operations and is recorded on the balance sheet. Liabilities can include many things to a business, such as, loans, accounts payable, mortgages, accrued expenses, etc. All the named liability accounts are just fancy for any money or service that is owed to another party. There are two types of liabilities, current liability and long term liability. Current liability is debt payable within one year and long-term liability is debt payable over more than a year. Current liability includes payables such as wages, accounts, taxes, and accounts payable. Long term liability includes long term bonds, notes payables, and long term leases. It is important that every business knows the concept of extinguishing liabilities. To extinguish liabilities means to satisfy the obligation and or payment to the creditor. Another way to extinguish liabilities is to transfer assets. This idea of extinguishing liabilities is meant for use by the SEC. There are many different industries that consider industry guidance in the FASB, Financial Accounting Standards Board, Codification and they include agriculture, contractors, entertainment, financial services and health care entities. The agriculture industry has many different characteristics represented...
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...Controls for Outflows Improper recording of costs and expenses are common errors in financial statements. Fraud is common in payroll, accounts payable, and cash disbursements. Errors and fraud can be prevented when controls for outflows in purchasing, accounts payable, cash disbursements, finance, investments, and payroll are performed. This proposal recommends and explains the controls in detail and describes the importance of the controls for each area. Purchasing: Purchases are requested by people who know what the organization needs. Purchasing is a vital component in any business. With internal controls in effect potential risk or fraud will be reduced. Companies that do not have adequate internal controls in place are in danger for opportunities for fraud, theft, and misuse. The recommendations for internal controls that relate to purchasing will follow. Separation of duties assigns functions to different people. No one person has complete control over all buying activities with proper segregation. The best practice is to have different people approve purchase, receive materials, approve invoices for payment, review and reconcile financial records, and to perform inventory counts. Consequences for not separation of duties are: * Unauthorized or unnecessary purchases made * Improper charges made to department budgets * Excessive costs incurred * Goods purchased for personal use (Internal Control Practices: Purchasing, 2009). Accountability, authorization...
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...exposure). Credit risks assessments (relates to a failure in obligation of the borrower). Customer risks assessments (relates to customers impact on the organizations reputation and financial position). Supply chain risks assessments (relates to the creation of products and services). Products risk assessments (relates to an organization production from inception to birth). Security risks assessments (relates to physical assets and information protection and security). Information technology risks assessments (relates to potential tech failures), and project risks assessments (relates to the delivery or implementation of the project). Within this proposal the team will be addressing the appropriate controls to cover purchasing, accounts payable, cash disbursements, finance, investment, and payroll. Appropriate Controls for Purchasing Appropriate...
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...Mike Wilson Xiaotang Wang 11/23/15 Segregation of Duties Segregation of duties is often referred to as the most effective form of internal control. Unfortunately, especially for small business, it can also be the most expensive form of internal control due to the necessity of increased work force. Segregation of duties (SOD), also known as separation of duties, falls under the framework’s control activities component created by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). According to the definition of COSO, segregation of duties is “Dividing or allocating tasks among various individuals making it possible to reduce the risks of error and fraud.”. Segregation of duties is to ensure that a single individual will be responsible for only one component. One of the benefits of maintaining separated duties is that it reduces the risks of fraud in the business. Other benefits are safeguarding the assets, making the financial reports fairly presented, and reducing the cost of external audit. Four functions are commonly segregated in practice. They are custody, authorization, record keeping and reconciliation. We intend to describe these functions in detail, provide examples of each control, and a real world example of what can happen when these functions are not separated. Authorization is described as, “the basis by which the authority to complete the various stages of a transaction is delegated” by the University of Washington. Authorization...
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...Date: October 10, 2011 From: Rachael Melendez To: PwC Auditor Introduction BLUE Company operates under an enterprise planning system which allows an organization to automate and integrate its essential business processes. There are many weaknesses within BLUE’s expenditure process that lead to potential risks. The internal controls in this company are poor; for example, certain departments are authorized too much power, such as the purchasing clerk and the cash disbursement department. These duties need to be segregated among other departments. By pre-approving transactions, such as an approved vendor list, preventative controls can eliminate the ability to engage in fraudulent activities. Also, this company needs to engage in a system of checks and balances among each department to ensure validity, accuracy and completeness. Analysis The first step in the expenditure process may create issues. All the employees should not have access to create a purchase requisition. For example, how can an employee that works in the cash disbursement department know about the inventory levels and make a purchase requisition. BLUE Company is lacking an inventory control department; this needs to be incorporated. BLUE Company should limit the number of employees with the access to create a purchase requisition within the inventory control department. Unauthorized access exposes assets to misappropriation, damage, and theft. By incorporating access controls, BLUE Company may be able to...
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...benefits. Obligation must be to pay cash, transfer noncash asset or provide service at some future time Measurement of financial liability Initial: fair value plus directly attributable transaction costs Fair value: present value of future cash payment Present value: discounted amount of future cash outflow using market rate Conceptually, measure at present value Subsequent: amortized cost Measurement of current liabilities: face amount Measurement of noncurrent liabilities Interest-bearing: face amount (already the present value) Noninterest-bearing: present value (requires amortization using effective method) Classification 1. Current liabilities Expect to settle liability within entity’s operating cycle Ex. Trade payables, accruals Current even if settled more than twelve months after reporting period When normal operating cycle not clearly identifiable, it’s twelve months Holds liability primarily for trading Financial liabilities held for trading: incurred with intention to repurchase in near term Due to be settled within twelve months after reporting period Does not have unconditional right to defer settlement for at least twelve months after reporting period 2. Noncurrent liabilities: those not current Long term debt falling due within one year is Current even if: Original term longer than twelve months Agreement to refinance or reschedule on long term basis completed after reporting period and before financial statements authorized for...
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...clarify the difference among accounts payable, notes payable, accrued expenses, depreciation, and amortization procedures. This week, you gain insight into the methods used for presentation and analysis of long-term liabilities and how those journal entries are calculated and recorded. During Week Two, you also prepare the necessary calculations and journal entries for depreciation and amortization. Liabilities OBJECTIVE: Differentiate among accounts payable, notes payable, and accrued expenses. Resource: Ch. 10 of Financial Accounting Content • Ch. 10: “Liabilities” o Current Liabilities • What is a Current Liability? • Statement Presentation and Analysis o Long-Term Liabilities • Bond Basics • Accounting for Bond Issues • Accounting for Bond Retirements • Accounting for Long-Term Notes Payable • Statement Presentation and Analysis OBJECTIVE: Prepare necessary journal entries to record the issuance of bonds, the periodic interest, and amortization of bond premiums and discounts. Resource: Ch. 10 of Financial Accounting Content • Ch. 10: “Liabilities” o Current Liabilities • What is a Current Liability? • Statement Presentation and Analysis o Long-Term Liabilities • Bond Basics • Accounting for Bond Issues • Accounting for Bond Retirements • Accounting for Long-Term Notes Payable • Statement Presentation...
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...Note: Our second case assignment for the quarter is the Harvard Business School Brief Case about Lyons Document Storage Corporation. Please go to our class website and buy the Harvard Case, but then use the following modification for you analysis and discussion. Please attach the copy of the Harvard case to your submission so that I will know that you purchased it. I think you’ll find this to be a little more straightforward presentation of the key issues. Lyons Document Storage Corporation: Bond Accounting. In December 2014, Rene Cook sat in her cubicle trying to remember what she had learned in business school about bonds and bond accounting. Ms. Cook, a new MBA and special assistant in a training assignment with the company president, had just met with David Lyons, president of Lyons Document Storage Corporation. He had asked her to think about the possible consequences of repurchasing company bonds outstanding using cash that he felt could be obtained by issuing new bonds with a lower interest rate. My Lyons had asked Rene to focus on how much the company’s annual interest payments could be reduced, how reported earnings would be affected, and how the refunding would change the company’s financial position as referenced on the balance sheet, if at all. The Company The Lyons Company was a family business in the stationary supply business until the document storage opportunity appeared in the early 1990’s. Lyons Document Storage Corporation was incorporated...
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...History Initially, accounting information systems were predominantly developed “in-house” as legacy systems. Such solutions were difficult to develop and expensive to maintain. Today, accounting information systems are more commonly sold as prebuilt software packages from vendors such as Microsoft, Sage Group, SAP and Oracle where it is configured and customized to match the organization’s business processes. As the need for connectivity and consolidation between other business systems increased, accounting information systems were merged with larger, more centralized systems known as enterprise resource planning (ERP). Before, with separate applications to manage different business functions, organizations had to develop complex interfaces for the systems to communicate with each other. In ERP, a system such as accounting information system is built as a module integrated into a suite of applications that can include manufacturing, supply chain, human resources. These modules are integrated together and are able to access the same data and execute complex business processes. With the ubiquity of ERP for businesses, the term “accounting information system” has become much less about pure accounting (financial or managerial) and more about tracking processes across all domains of business. [edit]Software architecture of a modern AIS A modern AIS typically follows a multitier architecture separating the presentation to the user, application processing and data management...
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