[CHG] fp changes
This commit is contained in:
Xavier Morel
parent
1ad6d35dd8
commit
0e8449f623
@ -36,11 +36,9 @@ li > p {
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/* P&L & Balance Sheet columns */
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.accounts-table > div > div {
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flex: 1;
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padding: 5px;
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margin: 5%;
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border: 3px solid #666;
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margin: 0 5% 5% 5%;
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border: 2px solid #666;
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border-radius: 3px;
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}
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@ -151,36 +151,38 @@
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var ASSETS = {
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code: 1,
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label: "Assets",
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CASH: { code: 10000, label: "Cash" },
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ACCOUNTS_RECEIVABLE: { code: 12000, label: "Accounts Receivable" },
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STOCK: { code: 14000, label: "Stock" },
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BUILDINGS: { code: 17100, label: "Buildings" },
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DEPRECIATION: { code: 18100, label: "Accumulated Depreciation" },
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TAXES_PAID: { code: 19000, label: "Taxes Paid" }
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BANK: { code: 11000, label: "Cash" },
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ACCOUNTS_RECEIVABLE: { code: 13100, label: "Accounts Receivable" },
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STOCK_OUT: { code: 14600, label: "Temporary Inventory Output" },
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STOCK: { code: 14000, label: "Inventory" },
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STOCK_IN: { code: 14700, label: "Inventory Purchases" },
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BUILDINGS: { code: 17200, label: "Buildings" },
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DEPRECIATION: { code: 17800, label: "Accumulated Depreciation" },
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TAXES_PAID: { code: 19000, label: "Deferred Tax Assets" }
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};
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var LIABILITIES = {
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code: 2,
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label: "Liabilities",
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NOTES_PAYABLE: { code: 20100, label: "Notes Payable" },
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ACCOUNTS_PAYABLE: { code: 21000, label: "Accounts Payable" },
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TAXES_PAYABLE: { code: 29000, label: "Taxes Payable" }
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DEFERRED_REVENUE: { code: 22300, label: "Deferred Revenue" },
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TAXES_PAYABLE: { code: 26200, label: "Deferred Tax Liabilities" }
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};
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var EQUITY = {
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code: 3,
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label: "Equity",
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CAPITAL: { code: 30000, label: "Owner's Capital" }
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CAPITAL: { code: 31000, label: "Common Stock" }
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};
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var REVENUE = {
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code: 4,
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label: "Revenue",
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SALES: { code: 40000, label: "Sales" }
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SALES: { code: 41000, label: "Goods" },
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SALES_SERVICES: { code: 42000, label: "Services" }
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};
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var EXPENSES = {
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code: 5,
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label: "Expenses",
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PURCHASES: { code: 50000, label: "Purchases" },
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GOODS_SOLD: { code: 55000, label: "Cost of Revenue" },
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DEPRECIATION: { code: 58100, label: "Depreciation Expenses" }
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GOODS_SOLD: { code: 51100, label: "Cost of Goods Sold" },
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DEPRECIATION: { code: 52500, label: "Other Operating Expenses" }
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};
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var categories = Immutable.fromJS([ASSETS, LIABILITIES, EQUITY, REVENUE, EXPENSES]);
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var accounts = categories.toSeq().flatMap(function (cat) {
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@ -199,17 +201,18 @@
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});
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var sale = 100,
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cor = sale / 2,
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cor = 50,
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cor_tax = cor * 0.09,
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tax = sale * 0.09,
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total = sale + tax,
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refund = sale * 0.1,
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refund = sale,
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refund_tax = refund * 0.09,
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purchase = 80,
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purchase_tax = 80 * 0.09;
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purchase = 52,
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purchase_tax = 52 * 0.09;
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var operations = Immutable.fromJS([{
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label: "Company Incorporation (Initial Capital $1,000)",
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operations: [
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{account: ASSETS.CASH.code, debit: constant(1000)},
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{account: ASSETS.BANK.code, debit: constant(1000)},
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{account: EQUITY.CAPITAL.code, credit: constant(1000)}
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]
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}, {
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@ -218,12 +221,18 @@
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{account: ASSETS.ACCOUNTS_RECEIVABLE.code, debit: constant(total)},
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{account: EXPENSES.GOODS_SOLD.code, debit: constant(cor)},
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{account: REVENUE.SALES.code, credit: constant(sale)},
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{account: ASSETS.STOCK.code, credit: constant(cor)},
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{account: ASSETS.STOCK_OUT.code, credit: constant(cor)},
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{account: LIABILITIES.TAXES_PAYABLE.code, credit: constant(tax)}
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]
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}, {
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label: "Goods Shipment to Customer",
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operations: [
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{account: ASSETS.STOCK_OUT.code, debit: constant(cor)},
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{account: ASSETS.STOCK.code, credit: constant(cor)}
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]
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}, {
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id: 'refund',
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label: "Customer Refund 10%",
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label: "Customer Refund",
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operations: [
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{account: REVENUE.SALES.code, debit: constant(refund)},
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{account: LIABILITIES.TAXES_PAYABLE.code, debit: constant(refund_tax)},
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@ -232,7 +241,7 @@
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}, {
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label: "Customer Payment",
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operations: [
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{account: ASSETS.CASH.code, debit: function (ops) {
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{account: ASSETS.BANK.code, debit: function (ops) {
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var refund_op = operations.find(function (op) {
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return op.get('id') === 'refund';
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});
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@ -250,17 +259,31 @@
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}}
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]
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}, {
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label: "Supplier Bill",
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label: "Supplier Goods Received (Purchase Order: $50)",
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operations: [
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{account: EXPENSES.PURCHASES.code, debit: constant(purchase)},
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{account: ASSETS.STOCK_IN.code, credit: constant(cor)},
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{account: ASSETS.STOCK.code, debit: constant(cor)},
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]
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}, {
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label: "Supplier Bill (Invoice: $50)",
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operations: [
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{account: ASSETS.STOCK_IN.code, debit: constant(cor)},
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{account: ASSETS.TAXES_PAID.code, debit: constant(cor_tax)},
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{account: LIABILITIES.ACCOUNTS_PAYABLE.code, credit: constant(cor + cor_tax)},
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]
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}, {
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label: "Supplier Bill (Invoice: $52 but PO $50)",
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operations: [
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{account: ASSETS.STOCK.code, debit: constant(purchase-cor)},
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{account: ASSETS.STOCK_IN.code, debit: constant(cor)},
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{account: ASSETS.TAXES_PAID.code, debit: constant(purchase_tax)},
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{account: LIABILITIES.ACCOUNTS_PAYABLE.code, credit: constant(purchase + purchase_tax)},
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]
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}, {
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label: "Supplier Bill Paid",
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label: "Supplier Bill Paid ($52 + 9% tax)",
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operations: [
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{account: LIABILITIES.ACCOUNTS_PAYABLE.code, debit: constant(purchase + purchase_tax)},
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{account: ASSETS.CASH.code, credit: constant(purchase + purchase_tax)}
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{account: ASSETS.BANK.code, credit: constant(purchase + purchase_tax)}
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]
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}, {
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label: "Acquire a building (purchase contract)",
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@ -273,7 +296,7 @@
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label: "Pay for building",
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operations: [
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{account: LIABILITIES.ACCOUNTS_PAYABLE.code, debit: constant(3300)},
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{account: ASSETS.CASH.code, credit: constant(3300)}
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{account: ASSETS.BANK.code, credit: constant(3300)}
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]
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}, {
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label: "Yearly Asset Depreciation (10% per year)",
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@ -281,6 +304,20 @@
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{account: EXPENSES.DEPRECIATION.code, debit: constant(300)},
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{account: ASSETS.DEPRECIATION.code, credit: constant(300)}
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]
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}, {
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label: "Customer Invoice (3 years service contract, $300)",
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operations: [
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{account: ASSETS.ACCOUNTS_RECEIVABLE.code, debit: constant(total*3)},
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{account: LIABILITIES.DEFERRED_REVENUE.code, credit: constant(sale*2)},
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{account: REVENUE.SALES_SERVICES.code, credit: constant(sale)},
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{account: LIABILITIES.TAXES_PAYABLE.code, credit: constant(tax*3)}
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]
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}, {
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label: "Revenue Recognition (second year service contract)",
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operations: [
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{account: LIABILITIES.DEFERRED_REVENUE.code, debit: constant(sale)},
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{account: REVENUE.SALES_SERVICES.code, credit: constant(sale)},
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]
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}, {
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id: 'pay_taxes',
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label: "Pay Taxes Due",
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@ -297,7 +334,7 @@
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return acc + op.get('credit', zero)(ops) - op.get('debit', zero)(ops);
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}, 0);
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}},
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{account: ASSETS.CASH.code, credit: function (ops) {
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{account: ASSETS.BANK.code, credit: function (ops) {
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return operations.find(function (op) {
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return op.get('id') === 'pay_taxes';
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}).getIn(['operations', 0, 'debit'])(ops);
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@ -24,7 +24,6 @@
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var _this = this;
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return React.DOM.div(
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null,
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"Example journal entries: ",
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entries.map(function (entry, index) {
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return React.DOM.label(
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{
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@ -116,146 +115,176 @@
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var entries = Immutable.fromJS([
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{
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title: "Company Founding",
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title: "Company Incorporation",
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operations: [
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{account: 'Cash', debit: 10000},
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{account: 'Common Stock', credit: 10000}
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{account: 'Assets: Cash', debit: 1000},
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{account: 'Equity: Common Stock', credit: 1000}
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],
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explanation: [
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"The founders invest capital in the company",
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"That capital is a debt of the company towards the founders",
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"It is represented as shares into the ownership of the company",
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"It is not a liability because it's not expected to be settled"
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"The company receives $1,000 in cash",
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"Shares worth of $1,000 belong to the founders"
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],
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configuration: []
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}, {
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title: "Buy work tooling (immediate cash payment)",
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title: "Customer Invoice ($100 + 9% tax)",
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operations: [
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{account: 'Tooling', debit: 3000},
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{account: 'Cash', credit: 3000}
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{account: 'Revenue: Goods', credit: 100},
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{account: 'Liabilities: Deferred Tax Liabilities', credit: 9},
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{account: 'Assets: Accounts Receivable', debit: 109},
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{account: 'Assets: Inventory', credit: 50},
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{account: 'Expenses: Cost of Goods Sold', debit: 50}
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],
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explanation: [
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"One asset (cash) is traded for an other asset (tooling)",
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"No new liabilities incurred",
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"Long-term assets are not expended immediately"
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"Revenues increase by $100",
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"A tax to pay at the end of the month of $9",
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"The customer owns you $109",
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"The inventory is decreased by $50 (shipping of the goods)",
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"The cost of goods sold decreases the gross profit by $50"
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],
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configuration: []
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configuration: [
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"Revenue: defined on the product, or the product category if not on the product, field Income Account",
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"Defered Tax Liabilities: defined on the tax used on the invoice line",
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"Accounts Receivable: defined on the customer (property)",
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"Inventory: defined on the category of the related product (property)",
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"Expenses: defined on the product, or the category of product (property)",
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null,
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"The fiscal position used on the invoice may have a rule that replaces the Income Account or the tax defined on the product by another one."
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]
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}, {
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title: "Buy work tooling (invoiced, to pay later)",
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title: "Reception of Goods - perpetual inventory",
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operations: [
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{account: 'Tooling', debit: 3000},
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{account: 'Accounts Payable', credit: 3000}
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{account: 'Assets: Uninvoiced Inventory', debit: 48},
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{account: 'Assets: Inventory', credit: 48},
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],
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explanation: [
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"An asset can be acquired through a liability",
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"Trade credits are short-term debts between businesses"
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"Inventory is increased by $48, the expected amount coming from the purchase order",
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"A temporary account is used for the counterpart and will be cleared when receiving the invoice"
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],
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configuration: []
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configuration: [
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"Uninvoiced Inventory: defined on the product or the category of related product, field: Stock Input Account",
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"Inventory: defined on the product category, field: Stock Valuation",
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null,
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"In this scenario, the purchase order is at $48, but the invoice the company will receive later will be at $50 (extra shipping costs)."
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]
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}, {
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title: "Customer Invoice ($100 + 9% tax) - perpetual inventory",
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operations: [
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{account: 'Revenue: Goods', credit: 100},
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{account: 'Liabilities: Deferred Tax Liabilities', credit: 9},
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{account: 'Assets: Accounts Receivable', debit: 109},
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{account: 'Assets: Uninvoiced Inventory', credit: 48},
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{account: 'Assets: Inventory', credit: 2},
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{account: 'Expenses: Cost of Goods Sold', debit: 50}
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],
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explanation: [
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"Revenues increase by $100",
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"A tax to pay at the end of the month of $9",
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"The customer owns you $109",
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"The inventory is decreased by $2 ($48 has already been posted)",
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"The temporary account (Uninvoiced Inventory) is cleared",
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"The cost of goods sold decrease the gross profit by $50"
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],
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configuration: [
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"Revenue Goods: defined on the product, or the product category if not on the product, field: Income Account",
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"Defered Tax Liabilities: defined on the tax used on the invoice line",
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"Accounts Receivable: defined on the customer (property)",
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"Inventory: defined on the category of the related product: Price Difference",
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"Uninvoiced Inventory: defined on the product or the category of the related product: Stock Input Account",
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"Expenses: defined on the product, or the category of product (property)",
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null,
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"The fiscal position used on the invoice may have a rule that replaces the Income Account or the tax defined on the product by another one."
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]
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}, {
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title: "Customer payment",
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operations: [
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{account: 'Assets: Cash', debit: 109},
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{account: 'Assets: Accounts Receivable', credit: 109}
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],
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explanation: [
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"The company receives $109 in cash",
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"The customer owns you $109 less"
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],
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configuration: [
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"Cash: defined on the journal used when registering the payment, fields Default Credit Account and Default Debit Account",
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"Accounts Receivable: defined on the customer (property)"
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]
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}, {
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title: "Buy an asset ($300,000 - no tax)",
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operations: [
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{account: 'Assets: Buildings', debit: 300000},
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{account: 'Liabilities: Accounts Payable', credit: 300000}
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],
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explanation: [
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"The company gets an asset worth of $300,000",
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"The company needs to pay $300,000 to the vendor (traded an asset against a liability)"
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],
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configuration: [
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"Buildings: Defined on the Asset category selected on the supplier bill line",
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"Accounts Payable: defined on the supplier related to the bill (property)"
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]
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}, {
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title: "Pay supplier invoice",
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operations: [
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{account: 'Accounts Payable', debit: 3000},
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{account: 'Cash', credit: 3000}
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{account: 'Liabilities: Accounts Payable', debit: 300000},
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{account: 'Assets: Cash', credit: 300000}
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],
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explanation: [
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"Liabilities must be settled",
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"Settling a liability is an outflow of resources (assets)"
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"The company owns $300,000 less to the supplier (liabilities are settled)",
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"The company's cash is reduced by $300,000 (reduction of asset)"
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],
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configuration: []
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configuration: [
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"Accounts Payable: defined on the supplier you pay (property)",
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"Cash: defined on the journal related to the payment method"
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]
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}, {
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title: "Cash sale (paid immediately)",
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title: "Cash sale (Sales Receipt)",
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operations: [
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{account: 'Cash', debit: 100},
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{account: 'Sales', credit: 100}
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],
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explanation: [],
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configuration: []
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}, {
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title: "Invoiced sale (trade credit)",
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operations: [
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{account: 'Accounts Receivable', debit: 1000},
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{account: 'Sales', credit: 1000}
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{account: 'Assets: Cash', debit: 109},
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{account: 'Revenue: Goods', credit: 100},
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{account: 'Liabilities: Deferred Tax Liabilities', credit: 9}
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],
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explanation: [
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"A sale is revenue",
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"What a client owes is an asset"
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"Company's cash is increased by $109",
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"Revenues increase by $100",
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"A tax of $9 has to be paid"
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],
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configuration: []
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configuration: [
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"Cash: Payment method defined on the Sales Receipt",
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"Sales: Defined on the product used in the sales receipt, or the category of product if empty",
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"Deferred Tax Liabilities: Defined on the tax used in the sales receipt (coming from the product)"
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]
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}, {
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title: "Customer pays invoice",
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title: "Customer pays invoice, 5% early payment rebate",
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operations: [
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{account: 'Cash', debit: 1000},
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{account: 'Accounts Receivable', credit: 1000}
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{account: 'Assets: Cash', debit: 950},
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{account: 'Revenue: Sales Discount', debit: 50},
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{account: 'Assets: Accounts Receivable', credit: 1000}
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],
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explanation: [
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"The customer owes less",
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"The bank account increases",
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"A client paying an invoice is a financial movement from one asset to an other",
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"Company's cash is increased by $950",
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"Sales discounts lowering effective revenues by $50",
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"The customer owns $1000 less to the company"
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],
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configuration: []
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configuration: [
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"Cash: is defined on the journal related to the payment / bank statement",
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"Sales Discount: is selected during the payment matching process",
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"Accounts Receivable: is defined on the customer associated to the payment"
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]
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}, {
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title: "Customer pays invoice, 10% early payment rebate",
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title: "Fiscal year closing — positive earnings and 50% dividends",
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operations: [
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{account: 'Cash', debit: 900},
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{account: 'Sales Discount', debit: 100},
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{account: 'Accounts Receivable', credit: 1000}
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{account: 'Net Profit', debit: 1000},
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{account: 'Equity: Retained Earnings', credit: 500},
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{account: 'Liabilities: Dividend Payable', credit: 500}
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],
|
||||
explanation: [
|
||||
"Sales discounts are contra revenues",
|
||||
"They are negative revenues, lowering effective revenue",
|
||||
"They are not expenses"
|
||||
"The P&L is cleared (net profit)",
|
||||
"50% is transferred to retained earnings",
|
||||
"50% will be paid to shareholders as dividends"
|
||||
],
|
||||
configuration: []
|
||||
}, {
|
||||
title: "Cash sale with tax",
|
||||
operations: [
|
||||
{account: 'Cash', debit: 109},
|
||||
{account: 'Sales', credit: 100},
|
||||
{account: 'Taxes Payable', credit: 9}
|
||||
],
|
||||
explanation: [
|
||||
"Selling with tax means there is tax to pay",
|
||||
"Tax to pay is a liability"
|
||||
],
|
||||
configuration: []
|
||||
}, {
|
||||
title: "Fiscal year cloture — positive earnings and 50% dividends",
|
||||
operations: [
|
||||
{account: 'Revenue', debit: 5000},
|
||||
{account: 'Income Summary', credit: 5000},
|
||||
null,
|
||||
{account: 'Income Summary', debit: 4000},
|
||||
{account: 'Expenses', credit: 4000},
|
||||
null,
|
||||
{account: 'Income Summary', debit: 1000},
|
||||
{account: 'Retained Earnings', credit: 1000},
|
||||
null,
|
||||
{account: 'Retained Earnings', debit: 500},
|
||||
{account: 'Dividend Payable', credit: 500}
|
||||
],
|
||||
explanation: [
|
||||
"Closing a fiscal year means transferring all P&L accounts to retained earnings",
|
||||
"If the retained earnings account is positive, a dividend may be paid to owners/shareholders",
|
||||
],
|
||||
configuration: []
|
||||
}, {
|
||||
title: "Fiscal year cloture — negative earnings and dividend irrelevant",
|
||||
operations: [
|
||||
{account: 'Revenue', debit: 5000},
|
||||
{account: 'Income Summary', credit: 5000},
|
||||
null,
|
||||
{account: 'Income Summary', debit: 6000},
|
||||
{account: 'Expenses', credit: 6000},
|
||||
null,
|
||||
{account: 'Retained Earnings', debit: 1000},
|
||||
{account: 'Income Summary', credit: 1000}
|
||||
],
|
||||
explanation: [
|
||||
"Dividends are paid from a positive retained earnings account",
|
||||
"Net losses will lower retained earnings",
|
||||
"Dividends may still be paid if the account is positive because of previous years"
|
||||
],
|
||||
configuration: []
|
||||
configuration: [
|
||||
"This transaction is recorded by the advisor before closing the fiscal year, depending on how the company uses its net profit."
|
||||
]
|
||||
}
|
||||
]);
|
||||
}());
|
||||
|
||||
@ -6621,7 +6621,6 @@ div.section > h1 {
|
||||
div.section > h2 {
|
||||
padding-bottom: 9px;
|
||||
margin: 40px 0 20px;
|
||||
border-bottom: 1px solid #eeeeee;
|
||||
font-size: 36px;
|
||||
padding-top: 20px;
|
||||
margin-top: 0;
|
||||
|
||||
161
index.rst
161
index.rst
@ -6,57 +6,55 @@ Accounting Memento For Entrepreneurs
|
||||
|
||||
.. rst-class:: intro-list
|
||||
|
||||
* .. rst-class:: intro-p-l
|
||||
.. rst-class:: intro-p-l
|
||||
|
||||
The **Profit and Loss** (P&L) report shows the performance of the company
|
||||
over a specific period (usually the current year).
|
||||
The **Profit and Loss** (P&L) report shows the performance of the company
|
||||
over a specific period (usually the current year).
|
||||
|
||||
* .. rst-class:: intro-gross-profit
|
||||
* .. rst-class:: intro-gross-profit
|
||||
|
||||
The **Gross Profit** equals the revenues from sales minus the cost of
|
||||
goods sold.
|
||||
The **Gross Profit** equals the revenues from sales minus the cost of
|
||||
goods sold.
|
||||
|
||||
* .. rst-class:: intro-opex
|
||||
* .. rst-class:: intro-opex
|
||||
|
||||
**Operating Expenses** (OPEX) include admininstration, sales and R&D
|
||||
salaries as well as rent and utilities, miscellaneous costs, insurances, …
|
||||
anything beyond the costs of products sold.
|
||||
**Operating Expenses** (OPEX) include administration, sales and R&D
|
||||
salaries as well as rent and utilities, miscellaneous costs, insurances, …
|
||||
anything beyond the costs of products sold.
|
||||
|
||||
* .. rst-class:: intro-balance
|
||||
.. rst-class:: intro-balance
|
||||
|
||||
The **Balance Sheet** is a snapshot of the company's finances at a specific
|
||||
date (as opposed to the Profit and Loss which is an analysis over a period)
|
||||
The **Balance Sheet** is a snapshot of the company's finances at a specific
|
||||
date (as opposed to the Profit and Loss which is an analysis over a period)
|
||||
|
||||
* .. rst-class:: intro-assets
|
||||
* .. rst-class:: intro-assets
|
||||
|
||||
**Assets** represent the company's wealth, things it owns. Fixed assets
|
||||
includes building and offices, current assets include bank accounts and
|
||||
cash. A client owing money is an asset. An employee is not an asset.
|
||||
**Assets** represent the company's wealth, things it owns. Fixed assets
|
||||
includes building and offices, current assets include bank accounts and
|
||||
cash. A client owing money is an asset. An employee is not an asset.
|
||||
|
||||
* .. rst-class:: intro-liabilities
|
||||
* .. rst-class:: intro-liabilities
|
||||
|
||||
**Liabilities** are obligations from past events resulting in future use
|
||||
or transfer of current assets (utility bills, debts, unpaid suppliers).
|
||||
**Liabilities** are obligations from past events that the company will have to pay in the future (utility bills, debts, unpaid suppliers).
|
||||
|
||||
* .. rst-class:: intro-equity
|
||||
* .. rst-class:: intro-equity
|
||||
|
||||
**Equity** the amount of the funds contributed by the owners (founders or
|
||||
shareholders) plus previously retained retained earnings (or losses).
|
||||
**Equity** is the amount of the funds contributed by the owners (founders or
|
||||
shareholders) plus previously retained earnings (or losses).
|
||||
|
||||
A difference is made between buying an assets (e.g. a building) and expenses
|
||||
(e.g. fuel). Assets have an intrinsic value over time, versus expenses having
|
||||
value in them being consumed for the company to "work".
|
||||
|
||||
Assets have necessarily been financed via liabilities or equity: a company can
|
||||
buy work space through profits, debts or injected capital (fund raising).
|
||||
|
||||
.. h:div:: force-right accounts-table
|
||||
|
||||
.. placeholder
|
||||
|
||||
What is owned (assets) has been financed through debts to reimburse
|
||||
What is owned (an asset) has been financed through debts to reimburse
|
||||
(liabilities) or equity (profits, capital).
|
||||
|
||||
A difference is made between buying an assets (e.g. a building) and expenses
|
||||
(e.g. fuel). Assets have an intrinsic value over time, versus expenses having
|
||||
value in them being consumed for the company to "work".
|
||||
|
||||
|
||||
.. rst-class:: force-right
|
||||
|
||||
.. highlights:: Assets = Liabilities + Equity
|
||||
@ -64,18 +62,19 @@ What is owned (assets) has been financed through debts to reimburse
|
||||
Chart of Accounts
|
||||
=================
|
||||
|
||||
The **chart of accounts** lists all the accounts used by the company, whether
|
||||
they are balance sheet accounts or P&L accounts. Every financial transaction
|
||||
(e.g. a payment, an invoice) impacts accounts by moving value from one account
|
||||
(credit) to an other account (debit).
|
||||
The **chart of accounts** lists all the accounts, whether they are balance
|
||||
sheet accounts or P&L accounts. Every financial transaction (e.g. a payment, an
|
||||
invoice) impacts accounts by moving value from one account (credit) to an other
|
||||
account (debit).
|
||||
|
||||
.. h:div:: force-right
|
||||
|
||||
.. highlights:: Balance = Debit - Credit
|
||||
|
||||
.. h:div:: chart-of-accounts
|
||||
|
||||
.. placeholder
|
||||
|
||||
.. highlights:: Balance = Debit - Credit
|
||||
|
||||
Journal Entries
|
||||
===============
|
||||
@ -121,38 +120,32 @@ to the sum of all its credits.
|
||||
- Bank Account: defined on the related bank journal
|
||||
- Account Receivable: defined on the customer
|
||||
|
||||
|
||||
Reconciliation
|
||||
==============
|
||||
|
||||
At a financial level, journal entries (and the corresponding operations in a
|
||||
company's account) are independent from one another: the invoices a company
|
||||
emits and the payments it receives are separate journal entries.
|
||||
Reconciliation is the process of linking journal items of a specific account,
|
||||
matching credits and debits.
|
||||
|
||||
It's thus easy to know how much was sold (by tallying the income account) and
|
||||
how the company is still owed overall (receivables) but not how much a
|
||||
specific client owes or which specific invoices are still unpaid (in order to
|
||||
send reminders for instance).
|
||||
Its primary purpose is to link payments to their related invoices in order to
|
||||
mark invoices that are paid and clear the customer statement. This is done by
|
||||
doing a reconciliation on the *Accounts Receivable* account.
|
||||
|
||||
Reconciliation is the process of correlating and linking journal items,
|
||||
matching the credits and debits of a specific account:
|
||||
An invoice is marked as paid when its Accounts Receivable journal items are
|
||||
reconciled with the related payment journal items.
|
||||
|
||||
* within a single account, look for all non-reconciled items (usually with a
|
||||
specific second party, e.g. all operations on *Accounts Receivable*
|
||||
concerning the same client)
|
||||
* link debiting items with crediting items, each side (debiting and crediting)
|
||||
can have multiple items.
|
||||
Reconciliation is performed automatically by the system when:
|
||||
|
||||
* the payment is registered directly on the invoice
|
||||
* the link between the payment and the invoice is detected at the bank matching
|
||||
process
|
||||
|
||||
The system can then use reconciliation to automatically mark invoices as paid
|
||||
(or partially paid), prepare and send reminders, flag accounting issues, …
|
||||
|
||||
.. rst-class:: force-right
|
||||
|
||||
Example
|
||||
-------
|
||||
|
||||
Reconciling on *Accounts Receivable* with all operations involving that
|
||||
specific customer will result in:
|
||||
|
||||
.. rst-class:: table-condensed d-c-table
|
||||
|
||||
+-------------------------+-------------------------+-------------------------+
|
||||
@ -175,63 +168,3 @@ specific customer will result in:
|
||||
|Total To Pay |50 | |
|
||||
+-------------------------+-------------------------+-------------------------+
|
||||
|
||||
Bank Reconciliation
|
||||
-------------------
|
||||
|
||||
Bank reconciliation is the process of finding and explaining the differences
|
||||
between the bank statements provided by banks and the company's own
|
||||
accounting. It is used to both import the bank's operations into the internal
|
||||
books (e.g. banking or overdraft fees) and discover issues (missing records,
|
||||
checks not passed to banks, operation inversions, …).
|
||||
|
||||
There are two main ways to perform bank reconciliation:
|
||||
|
||||
Intermediate account
|
||||
~~~~~~~~~~~~~~~~~~~~
|
||||
|
||||
Bank statements can be encoded in a dedicated "bank" account, which is then
|
||||
reconciled normally.
|
||||
|
||||
.. h:div:: force-right
|
||||
|
||||
* encode a check being sent:
|
||||
|
||||
.. rst-class:: table-condensed d-c-table
|
||||
|
||||
+--------------------+-----+------+
|
||||
| |Debit|Credit|
|
||||
+====================+=====+======+
|
||||
|Accounts Payable |121 | |
|
||||
+--------------------+-----+------+
|
||||
|Emitted Checks | |121 |
|
||||
+--------------------+-----+------+
|
||||
|
||||
* get the bank statement and encode it:
|
||||
|
||||
.. rst-class:: table-condensed d-c-table
|
||||
|
||||
+-----------------+-----+------+
|
||||
| |Debit|Credit|
|
||||
+=================+=====+======+
|
||||
|Emitted Checks |121 | |
|
||||
+-----------------+-----+------+
|
||||
|Bank | | 121 |
|
||||
+-----------------+-----+------+
|
||||
|
||||
* reconcile on the Emitted Checks account, it is a normal reconciliation
|
||||
process between two journal items
|
||||
|
||||
Bank reconciliation
|
||||
~~~~~~~~~~~~~~~~~~~
|
||||
|
||||
The operation can also be implemented specifically, this is used e.g. in the
|
||||
US. In that situation, each act having to do with a potential bank account
|
||||
operation (bank transfer, check, payment notification) is immediately encoded
|
||||
to a journal entry and when the bank statement is received its entries are
|
||||
correlated to the previously encoded entries.
|
||||
|
||||
In that case, the bank statement does not generate entries, it only points
|
||||
to/validates previously created entries.
|
||||
|
||||
.. note:: In Odoo, that would be Pay Invoice -> Import Bank Statement, only
|
||||
added to master mid-january.
|
||||
|
||||
Loading…
Reference in New Issue
Block a user