Cash Basis Accounting and History Posting

Cash Basis Accounting and History Posting

PO-1037

Overview This Extended Solution to the standard MAS 90 MAS 200 Purchase Order module provides the ability to operate a cash basis accounting system within MAS 90 MAS 200. In general, this means that posting to the General Ledger module occurs only when an Accounts Payable check is generated to pay an invoice received and posted using the Receipt of Good/Invoice operation in Purchase Order Processing. The functionality of this Extended Solution is substantially similar to AP-1006: Cash Basis Accounting for Accounts Payable.

The Sage Software Extended Solution AP-1006 must be installed and enabled in order for this Extended Solution to operate.

Installation Before installing this Extended Solution, please verify that the version level(s) printed on the CD label are the same as the version level(s) of the MAS 90 MAS 200 module(s) you are using. For further information, please see the Upgrades and Compatibility section below. Check your Shipping Manifest for a complete list of Extended Solutions shipped. For detailed installation instructions, please refer to the Sage website at: http://support.sagesoftware.com/mas/extended_solutions/main.cfm Installing Your Extended Solutions under Windows From a CD If you have the autorun function turned on for your PC, the installation program will start up automatically. If not, find the autorun.exe file on your CD-ROM drive and double-click it to start the installation program. Follow the on-screen instructions. From the Sage FTP site When your Extended Solution is ready to be downloaded, you will receive an email from ‘[email protected]’ telling you that it is ready. The email will contain the Customer Name, Cross Reference, a case-sensitive Password, a link via which you can download your Extended Solution, instructions, and a Shipping Manifest. If you have any problems with this order, please email [email protected] and we will assist you during normal business hours. Extended Solutions Control Center Installing any Extended Solution will add an Extended Solutions Control Center to the MAS 90 MAS 200 Library Master Utilities menu. When you open the Control Center, the following options will be available:

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• Extended Solutions Manuals • Remove Extended Solutions • Unlock Extended Solutions • Merge Installation Files • Extended Solutions Setup options

Custom Office If you customize your MAS 90 MAS 200, then you must run the Update Utility every time you install a Sage Software Extended Solution.

Setup Once the disk is installed, you will need to access the Purchase Order Setup menu option screen. After the standard MAS 90 MAS 200 option screens have been displayed, a Setup screen for this Extended Solution will appear. Check the ‘Enable Extended Solution’ box to activate this Extended Solution (Figure 1). The manual for this Extended Solution, if it has been installed, can be viewed by clicking the ‘Manual’ button next to the ‘Enable Extended Solution’ check box. It can also be viewed via the Extended Solutions Control Center (see Installation, above).

Figure 1

Answer the following prompts: UPON PAYMENT OF INVOICE POST DEBITS TO THE: The G/L posting for inventory items which are not received to a job may be handled in three different ways. You may select the method which sage suits your operation. The three available options are:


1) Upon payment of Invoice, post debit to Purchases Clearing account. 2) Upon payment of Invoice, post debit to Inventory account. 3) Upon payment of Invoice, post debit to Cost of Sales account.

USE LINE ITEM INVENTORY ACCOUNT NUMBER: If you check this box, the expense account number entered on the purchase order line will be used for the debit posting. This option is available only if you elected to post debit to Inventory. DISPLAY AND EDIT EXPENSE ACCOUNT IN ROI: Check this box to have the ability to display and edit the Expense Account Number in Receipt of Invoice Entry. This option is accessible only if you chose to post debits to the Inventory account and checked the ‘Use Line Item Inventory Account Number’ option above.

In order to edit the Expense Account Number, you must have selected the ‘Allow Override of G/L Account During Data Entry’ option in standard MAS 90 MAS 200 Purchase Order Setup (‘Additional’ tab).

The following option is only available if the AP-1006 Setup option to ‘Post to GL on Cash Basis’ is checked: POST RETURNS ON CASH BASIS: If you check this box, the postings that would normally occur after the Returns Register is updated may not take place. See Operations. Operation The standard MAS 90 MAS 200 Purchase Order operation remains unchanged. No screens have been altered. Receipt of Goods Normal Receipt of Goods Update will occur, but no general ledger postings will be made. Receipt of Invoice Changes have been made to the update processing logic when an invoice is received (either through Receipt of Invoice or Receipt of Goods). All expense postings which would normally occur (for purchased items, sales tax and freight) and the debit to Purchases Clearing for Inventory items are not performed during the Receipt Register update. The General Ledger account numbers and the dollars involved are recorded in a new file to be used later by the Accounts Payable module when a check is generated. The account number which is recorded for inventory items depends on the posting method selected (see Setup above). In the case of purchases to a Job, the account number recorded is the account number entered on the Purchase Order line (usually the COS or WIP account from Job Cost Setup). If you checked the ‘Display and Edit Expense Account In ROI’ box in Setup, during ROI entry or ROG entry with the invoice number, when you select an inventory line to edit, the Expense Account from the PO Line File will display in the GL Account Number field and you will be able to edit the account number.


Accounts Payable Interface When a check is updated in payment of an invoice posted from Cash Based Purchase Order, the account the debit is posted to is determined by the selection of method 1, 2, or 3 (see Setup) for inventory items or the appropriate expense account for non-inventory items. Refer to the AP-1006: Cash Based Accounting for Accounts Payable manual for more information. COD and Pre-Payment Processing While typically no General Ledger postings will result from Purchase Order activity, an exception occurs during the update of the Receipt of Invoice Register where pre-payments have been applied or where a COD payment has been indicated. In each of these cases, processing will occur as though the check were being written and processed as per Accounts Payable Cash Basis accounting. Refer to the AP-1006: Cash Basis Accounting for Accounts Payable manual for more information. Material Requisition Processing No changes have been made to Material Requisition processing. It will not process on a cash basis. Post Returns on a Cash Basis If you checked this option in the Setup, for Returns with invoice numbers and non-zero return balances, the postings that would normally occur after the Returns Register is updated will not take place. The distribution information by vendor/invoice will be captured in the ‘Invoice Distributions’ data file. The posting will occur during A/P Check Register Update when the Return's Debit Memo Invoice has been referenced on a check. The G/L Credit posting will occur to the account specified as the ‘Debit Account’ in Setup. Upgrades and Compatibility The installation CD is labeled with the version of the MAS 90 MAS 200 module for which this Extended Solution was prepared. This Extended Solution will check its compatibility with the appropriate MAS 90 MAS 200 modules and will be disabled if an incompatibility is found. If you upgrade your MAS 90 MAS 200 modules, this Extended Solution must be upgraded as well. Your MAS 90 MAS 200 dealer can supply this upgrade. Documentation Only changes made to the standard operation of MAS 90 MAS 200 have been documented in this manual. Operations not documented in this manual are standard procedures of MAS 90 MAS 200 processing. Standard MAS 90 MAS 200 processes, data entry screens, inquiry screens, reports, updates, etc., have not been changed unless addressed in this document. Parts of this document may refer to the Specific Purpose Rule. When referenced, the described feature was developed for a specific client to its specifications and may not conform to generally accepted MAS 90 MAS 200 standards and procedures. These features may or may not benefit you in your application of MAS 90 MAS 200.


Acknowledgments © 2005 Sage Software, Inc. All rights reserved. Sage Software, MAS 90 and MAS 200 are registered trademarks or trademarks of Sage Software, Inc. All other trademarks are the property of their respective owners.


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Cash Basis Accounting and History Posting

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