budgeting (finance cont..)

Recurring free text invoices are

*Used when a customer is to be billed on a recurring basis. SAME AMT steps: Create a free text invoice template. Assign the template to a customer. Generate and post the recurring invoice. define tax gourps, method of payment, terms, service descript, revenue accts, unit price, invoice AMT, charges, distributions + fin dim info *You can set up the templates by using the Generate Recurring invoices page.* --assign the temp 2 customer on invoice tab on customers page. update start date, 4 recurring billing, frequency, max billing amt ((multiple templates 4 multiple frequencies))

view settlements dialog box

*View related - Show all the payment journal transactions that were created in the payment journal that is related to the selected document. In addition, all the settlements that are related to those payments are shown. While you're viewing related payments, the label of this button changes to View settlements. *View history - Show the settlement history for the vouchers. *View accounting - Show all vouchers that are related to the selected documents. *Export - Export the selected vouchers to Microsoft Excel. *Settle transactions - This button appears only if the original document that was selected wasn't fully settled. When you select this button, the Settle transactions dialog box appears, where you can select transactions for settlement. *Undo settlements - This button appears only if the original document that was selected was fully settled. When you select this button, the Undo settlements dialog box appears, where you can undo the settlements that were done for that document. *NOTE: When you click the Update button, the selected payment and invoice transactions are settled. *If the payment amount is less than the amount due, the payment amount is subtracted from the amount due, and the invoice remains open. The payment transaction is fully settled and is closed. (if OVER then it's settled)

By applying budget check,

, you can prevent the source documents - such as Purchase requisitions, Purchase orders, or Vendor invoices - from additional processing if they exceed the budget funds available. *activate budget checking for purchase orders and turn on the budget control configuration*

Canceling invoice

- The system-generated credit invoice that was created to cancel the invoice that was most recently corrected.

create & manage budget register entries

--WF comes before --CREATE THEM FOR: Create budget amounts Transfer budget amounts Allocate budget amounts across periods or dimensions Create recurring budget register entries Revise budget register entries

auto charges

--applied automatically when you create a purchase order. You can define for specific vendors, items, or groups of vendors.

Budget Transfers

--creating a budget register entry that has a budget code associated with the Transfer budget type. (essentially decreasing 1 budget by amount and increasing another by same amt) make 2 registers: -1200 from account 23 1200 to account 24 Why? To satisfy over-budget condition Transf. from source documents/ acctg journals

AR payment proposal

--to record the payments to the customer's accounts, and also to ensure that you can reconcile the accounts receivable information with general ledger information. --select payment recs and create journal **can also use Enter Customer Payments as ALT of manual paym journal lines**

method: Allocate across periods

--you can use a period allocation key to allocate budget plan lines from the source budget plan scenario across periods in the destination scenario.(need period categories)

free text invoices //Distributing taxes

-Must Calc taxes first TO CALC: FT INVOICE PAGE --> (View the sales tax View the invoice total View the cash flow View accounting distributions for the whole free text invoice View the subledger journal)

pre-requisites of AP/ AR

-cash and bank setup/ GL setup, currencies, exchange rate types, currency exchange rates, bank accounts setup to us the banks with methods of payment

setting up payment fees

-decide to charge to vendor or to ledger(journal type = vendor bank remittance)

invoice arrivals

-if you use an invoice register, then invoices will go to arrivals and arrivals offset accounts. -if you do not use, invoices will go to Vendor summary account

You want to prevent the Accounts payable clerk from generating payments for a specific vendor invoice. What option in the On hold field should you select? -no -invoice -all -payment

-payment

steps for paying vendors

-payment days -payment schedule (installment plan, how many payments over X period)..(fixed amount.. %..).. (distribute sales tax/ charges proportionally over ea. period?) -terms of payment (Cash, select cash and select cash account) (NOTE specify payment schedule) -cash discounts -setup payment fees -create vendor groups (by similar payment) -general posting rules setup

sales order invoice free text invoice

-specifies item number (auto post item ledger trans). MAKES INV TRANSACTIONS. NO subledger journal -no item number, (to sell fixed assets & calcs depreciation)..A ledger account for the sale is selected by the user and is displayed on each order line...post customer balance to the summary ledger account 4 posting profile. Subledger journal holds entries b4 posting

vendor groups purpose

-specify ledger posting/accounts (offset, discount, receipt, item consumption) (specify payment terms, time between invoice due date, default tax group) -record sales budgets -trade stats (monthly consumption per group)

Process a vendor payment by using a payment journal --> steps

1. AP, vendor payments journal 2. lines > payment proposal 3. Show payment overview button to view the payments that will be created for the vendor on the invoice selected. 4. create payments 5. select vendor 6. settle transactions 7. Generate payment to print checks or create the electronic payment file. (select method of payment) 8. select bank account for which to gen payments from 9. Click Post if all the payments are approved and generated.

1. Which one of the following features determines how budget plans can be updated? 2. Which one of the following features defines categories of data for the budget plans? 3. Which one of the following features contains the budget data for a budget planning process?

1. budget planning process 2. budget plan scenarios 3.budget plans

budget control parameters

1. define params (dimensions and DEFAULT time intervals, threshold, managers) 2. over budget permissions (to exceed = users, select main accounts for specific expenditures) 3. busget funds avail (calc avail budget funds, can include DRAFT or unposted.. if u want) 4. docs and journals (which will b subject to budget contrl checks), (checks occur @ entry line?) 5. assign budget models (to budget cycle time spans) 6. degine udget control rules (required, determin fin dim combos for budget control)... (focusing on expend. on certain cost center / dept) 7. select main accounts 8. define budget groups (budget resources are pooled for secondary checking) 9. define message levels (approvers, originators, overbudget: for budget control warnings) 10. activate buduget contorl (only after configurations are done)... draft version becomes effective... cant beb turned off mid -year ... turn on only at beginning of a new budget cyle.

budgeting parameters &CONFIG

1. define the budget journal, num seq, defaul behavior 2. approval policies, (absed on type), WF, define rules to supposet transfers without WF 3. budgeting dims (associate account structures) 4. codes (OG budget, transfer, revision, encumb) 5. trasnfer rules (disallow trasnfer budget from certain department) 6. budget models (single, multiple) --> FY2015, FY2020...

budget plan column and layout STEPS

1. first define the columns, 2. then you can create a layout to define the presentation of the columns.

three way matching policies steps

1. set matching policy at the legal entity level to three-way matching. 2. set Automatically update header matching status at the legal entity to Yes. 3. set Match price totals field for the legal entity to Percentage, set % tolerance 4. sets the matching policy at the item level for item 1500 to Three-way matching.

cash discount unspecific specific

=unspecific: the underpayment amount is posted to the vendor cash discount account (invoice is settled, difference is posted) =specific: the overpayment or underpayment amount is posted to the vendor cash discount account.(posted to the vendor's cash discount account)

example of over/under payment (Cash discount settlements)

A customer's invoice total is USD 105.00, and the obtainable cash discount is USD 10.50. Considering the cash discount, the customer will pay USD 94.50 (105-10.50). However, the amount they receive from the customer is USD 95.00. If the Cash-discount administration parameter is set to Unspecific, the invoice is settled, and the difference of USD 0.50 is posted to the ledger account that is specified for cash discount differences. If the Cash-discount administration parameter is set to Specific, the invoice is settled, and the difference of USD 0.50 is posted to the customer's cash discount account.

budget control example

A purchasing agent creates a purchase order that has multiple lines. The first three lines are entered. When the purchasing agent enters the fourth line, a message is displayed that the financial dimension value is over budget. The purchasing agent is not in a user group that is authorized to exceed the budget. The purchasing agent can complete the fourth line, enter additional lines, and save the purchase order in a Draft state. *MNGR has authority of over - budget funds, they can also Subsequently, the budget manager performs a budget transfer to increase the available budget for the financial dimension value that was over budget.

3. Which one of the following options in the Payment schedule field requires payment lines to be set up?

A specified amount is due on each specified payment date. If Specified is selected, the payment schedules and amounts must be defined on the Payment lines FastTab.

to reimburse a customer

AR payment journal use a debiting transaction or the reimbursement features = transfers the balance to a vendor account

assigning vendor posting profiles

All vendors Groups of vendors A single vendor **need a default posting profile in AP parameters (A posting profile must be specified for every update of a vendor transaction.)

Budget plan scenarios

Budget plan scenarios define categories of data for the budget plans. You can define budget plan scenarios to support monetary and other unit of measure classes, such as quantity (Department previous year and Department requests, Previous year support calls and Full-time equivalent (FTE) count.)

The following is an overview of the parameters in the Vendor payment proposal page.

Create payments without invoice preview Yes: payments will be created immediately on the Vendor payments page No: payment proposal process

budget analysis (inquiries & reports)

Displays either Draft or Completed. The Source document field displays the identifier of the source document that a budget register entry originated from. --view actual vs budget (compile fin dims)

invoice matching if you want to actually receive goods b4 posting an invoice

Enable invoice matching validation option is selected on AP parameters. Post invoice with discrepancies field is set to Require approval

To decrease the budget for the From financial dimension values,

Enter negative amount (to take money OFF a certain department)

You can configure budget control according to several factors:

Financial dimensions - what financial dimensions are required to control & report . Determine if specific dimension combinations or main accounts require attention. For example, you might need to verify whether requirements exist to track budget to actuals by cost center and program, or if travel expenses require special attention. Time - time frame (fiscal period, fiscal period to date, and so on) will be used to evaluate available budget funds. Source documents - Establish what source documents must be evaluated for budget control, and if the documents should be evaluated per line or per document. Funds available calculation - Determine if documents such as purchase requisitions (pre-encumbrances) and purchase orders (encumbrances) should be considered in the calculation of available funds. Evaluate whether documents that are in a draft state should be considered in the calculation. Override permission - Discover who has permission to exceed the available budget.

Reverse a closed transaction steps

Go to Accounts payable > Vendors > All Vendors. Select a vendor record. On the Action Pane, click the Invoice tab, and then click Undo settlement.

Settling invoices and payments

If the amount paid equals the amount due, then the system generates a payment transaction for the payment amount and then closes the transaction *enable automatic settlements*--> AR setup --> customer posting profiles -->table restrictions --> settlement

adding customers

In the Data entity behavior field, select the behavior that the data entities should use when data is imported: -allow changes w/o approval -reject changes -create change proposals NAV: Go to Accounts receivable > Setup > Accounts receivable parameters General WHERE? (In the list of customer fields select the Enable check box for every field that must be approved before the changes can be made.

Types of Vendor holds

Invoice - No invoices can be created or posted for this vendor. All - All transactions for this vendor are on hold. Payment - No payments can be generated for this vendor. Payments that were generated before the hold was applied can still be posted. Requisition - No requisitions can be generated for this vendor. Never - Prevents vendors from being put on hold for inactivity. No- vendor has no holds (all trans are permitted)

Revision Budget: want to add $500 to act 024, Sales budget

Make another budget register entry --> line for $500, goes thru WF, go to statistics and apply param, it'll be $1500...

two methods for prepayments

Prepayment invoicing - You create a prepayment invoice that is associated with a purchase order. (defined on the PO) Prepayment journal voucher - This is good for those organizations that don't want to track prepayments as closely or don't receive a prepayment invoice from their vendor. *A vendor issues prepayment invoices to require a deposit on the purchase before the purchase order is fulfilled.

terms of payment are

SHARED for AR and AP --for calculating a due date based on the date of the invoice. define for customers and sales orders on cust page and sales ord. page respectively

Summarize accounting entries -

Select whether to summarize accounting entries. Journal entries can be summarized across documents of the same type when the journal entries have the same dates, posting types, currency, and ledger accounts. If you selected Synchronous in the Transfer mode field, No is displayed.

method: Aggregate

The budget plan lines are aggregated from the source budget plan scenario in the associated budget plans to the destination scenario in the parent budget plan.

method: allocate to dimensions

The budget plan lines are allocated from the source budget plan scenario across the financial dimensions in the destination scenario. (need alloc. terms)

method: Use ledger allocation rules

The budget plan lines are distributed from the source budget plan scenario to the destination scenario, based on the ledger allocation rule that is selected.

payment control

Validation is performed in the journals upon posting when the payment method is used. ------ Check number is mandatory - Verifies that the CHECK NUMBER is entered. Payment reference is mandatory - Verifies that a PAYMENT REF is entered. Deposit slip is mandatory - Indicates that the option to use a DEPOSIT SLIP must be selected. Offset account has the type bank - Verifies that the offset account type selected is Bank. Bank transaction type is mandatory - Verifies that a bank transaction type is selected.

best way to access budget register entries

Workspace: ledger budgets and forecasts (better vision & insight) *** can also review the queue for all unconfirmed purchase orders that have budget check warnings and errors here *** -can create new entries from here -specify model, budget code, WF = disabled, budget type (chose Original budget (now WF = enabled)), in lines (defaults account structure, pick and chose expenses in account), dept, amount > Save, green circle appears =budget check passed bc this account is being controlled, Submit to particular individual before you can Update budget balances.

net unit price matching.

You can compare price information for the net unit price of each item on the invoice.

method; Copy from budget plan

You can select another budget plan to use as the source of the allocation.

allocation methods: reason

allocate amounts or qtys on budget plan lines from one scenario to another scenario (or even to the same scen). Allocations are done within a budget plan or from one budget plan to another

accounting distributions

allocate monetary amounts for a source document to specific ledger accounts. -distribute either credit or debit *go to GL --> trial balance & subledger journals not yet transferred (view accounting) **GL params, batch transfer rules

distribute by

amount percent quantity

methods of payment

ap > payment setup > methods of payment --SPECIFY: check, period (by invoice / by date/ by total), number of days added to cash discount (grace period), posting to ledger?, generate export formats for e-paymen...standard = , checks: setup payment fees (handling fee) -You must enable the Allow copies of payments field to allow users to print non-negotiable copies of payments for the selected method of payment (resolve disputes) -remittance files for vendors (electronic payments) -assigned to vendors, journals, and purchase orders -payment control = bank transaction type = mandatory, offset

synchronous vs asychronous

async = if lots of transactions, can report to GL when you need to (manual). "transfer source document subledger journal entries to the general journal after the source document is journalized into the subledger journal. The transfer occurs when server resources are available to process them, which might be immediately, or it might be later." sync = transfers immediately. can specify ONLY for vendor invoices, MAY degrade the performance. You cannot summarize accounting entries when you use this kind of transfer mode

Subledger journals for free text invoices

b4 you post FT invoice, view full acctg distributions (credit and debits to spec. accounts)

Which one of the following options in the Credit limit field checks the credit limits for a customer's balance, deliveries, and open orders? -balance + all -none -balance + packing slip or product receipt -balance

balance + all

a method of ensuring that enough budget funds are available for planned or actual purchases

budget control

Budget control statistics

chose budget cycle, apply parameter, (dimensions or group) --> look at budget funds available, look period by period

buyer groups

create links b/w emps and vendors / items and planned orders

budget planning config

create schema, assign only 1 org hierarchy, user security model based on worker positions, create budget plan WF at each level of budgeting hierarchy

budget allocation terms

define fin fims and %'s that will be used to gen allocation in thebudget account entries for register entries (optionlal)

allocation shedules

define how an allocation should be performed and which scenarios are involved based on the next configuration screen, which is the Stage allocations tab, where budget plan lines are automatically allocated during workflow processing.

Configure accounts payable components steps

define vend payment fees -select payment fee setup -setup charge codes -create charge groups for vendors -create item charge groups -setup autocharges

. Summary accounts

defined for vendors --temporary accounts where all invoices are posted to and offset when the vendor is pai

Budget planning processes

determine how budget plans can be updated, routed, reviewed, and approved in the budgeting organization hierarchy. Linked to budget cycle & Org via a LEGAL ENTITY

customer posting profiles

enable you to assign general ledger accounts and document settings to all customers, a group of customers, or a single customer. *summary accounts are defined for customers. Summary accounts are temporary accounts where all invoices are posted to and offset when the customer pays. must select: settlement interest collection letter Close - Select a posting profile to change to when transactions that have this posting profile are closed. A transaction is regarded as closed when it has been settled in full.

to correct a FT invoice that's already been posted:

enter corrections to make modifications --canceling invoice is created, original invoice remains, and corrected invoice is created which is where you enter new / correct values --select CANCEL on the invoice you want to correct

Budget cycle time span

fiscal year, or you can specify the number of periods for part of a fiscal year or to span fiscal years. --ssign a budget model to a budget cycle to perform budget checking for the budget cycle

positive pay

generate an electronic list of checks that can be presented to a bank. *to prevent fraud* --created by using data entities. Before you can generate a positive pay file, you must set up a transformation input format that will be used to translate the check information into a format that can communicate with the bank. -transformation input format must be of the XML type --On the Bank accounts page, select the positive pay format that corresponds to the bank account. specify date as well

Budget plans

ontain the budget data for a budget planning process. You can have multiple budget plans that are used for various purposes. For example, budget plans can be used to create budget amounts for different organizational units -- to define the expected revenues and expenditures for a budget planning process. --Consolidate multiple budget plans from a lower level of the organization into a single parent budget plan at a higher level of the organization. You can also develop a single budget plan at a higher level of the organization and allocate the budget to lower levels of the organization.

Which one of the following options selects multiple sales orders to be summarized based on a criterion? a-automatic summary b-invoice account c-order

order

The Budget account entries

page provides drill-through to the details of the budget amount in budget register entries.

This helps payment proposal to suggest those customer invoices that should be brought into the customer payment journal for posting. should be entered as "10" as opposed to the "10th"

payment days

Which one of the following parameters in a Payment proposal is only used if the method of payment is set up to Total invoices for payment on a specific day? -payment for sum of vendor invoices -payment weekday -payment currency -payment for each invoice

payment weekday

purpose of an invoice register

pre-register invoices when they arrive at the company and transfer them TO an invoice pool for approval.the emp "registers" the vendor account, invoice num, amt, etc. employee validates and posts the journal to the accounts specified in the posting profile. *When posting the journal lines, you transfer them to an invoice pool. In an invoice approval journal, you can transfer them from the invoice pool into the invoice approval journal. *Invoice pool displays the relative info.

prepped as an estimate (b4 posting)

pro forma invoice

Budget allocations

provides an automated way to create the breakdown of budget amounts across dimension values or combinations of dimension values.

The following fields change the behavior of the posting process.

quantity (select the quantities on which to base the postings of this document.. "deliver now", "picked", "all", "packing slip") posting (select or clear... select to journalize the sales order) late selection (for batch jobs) reduced quantity (reduce the delivered quantity when the document is posted. to reflect inventory) send email (to customer as attachment) print management destination check credit limit (select info that should be analyzed) credit correction (display the credit note as a debit) credit remaining qty (keep remaning qyt on order) summary update for (sum mult SO's)

invoice status

registered-- approved paid

SETUP BUDGET planning process

select budg cycle, ledger, budget org hierarchy, assign WF, define stag rules and templates, priorities, activate, view process status

In the Cash-discount administration field in the Accounts receivable > Setup > Accounts receivable parameters page and Settlement tab,

select what to do with an overpayment or underpayment when a cash discount is not deducted when the invoice is settled.

3. When setting up the Payment for each invoice parameter in Payment proposal, which of the following settings should you also set to handle the scenario where an unsettled invoice and payment exist for a vendor, both the unsettled invoice and the payment are selected for payment, and the amounts are added together to produce the total payment amount.

set DELETE NEGATIVE PAYMENTS to yes

AR -- to use credit cards

set up and activate a payment service on the Payment services page -Payment connector (input CC company info) STEP 2-accounts receivable parameters page, specify parameters for using credit card authorizations. STEP 3-On the Terms of payment page, set up payment terms for credit cards. In the Payment type field, select Credit card. STEP 4- on customer page, enter CC info * you can add a CC when you create a Sales Order

use to help make sure that the variance between the price information on the purchase order and the invoice is within acceptable tolerances

two way matching

invoice remainder quantity

updated with the total of the invoiced quantities from the selected sales order *if not = 0, then status of sales order in unchanged

posting definitions

you can use posting definitions instead of posting profiles to classify main accounts and financial dimensions on accounting entries. --(gl parameters, use posting defs) --you must still define posting profiles for the originating entries and non-supported posting types and documents Why use them? USE in order to enable encumbrance accounting for purchase orders and pre-encumbrance accounting for purchase requisitions. --also specify match criteria of originating entries --assign priorities