Accounting elements
[Ledgers] – displays a list of journal entries posted in the current accounting period
[Account Filter] – displays a list of journal entries posted in the current accounting period, displayed by accounts
[Accounting Notes] – displays a list of accounting notes
[Chart of Accounts] – displays chart of accounts
[Trial Balance] – previews trial balance of accounts in a given accounting period
[Opening Balance] – displays a list of opening balance documents
[Schemes] – displays a list of posting schemes
[Recurring Posting Operations] – displays a list of recurring posting schemes
[Statements] – displays a list of financial statements and allows the user to define new statements
[Tax Returns] – displays a list of VAT-7 declarations
[Clearings]
[Bank Reconciliation] – enables to compare figures from accounting records against those presented on a bank statement
[VAT Accounts] – displays a list of VAT accounts
Functions description
1) Journal Entries:
Ledgers – each event that occurs in given accounting period is registered in the books of that particular reporting period as journal entry. The journal entry is understood as an entry registered on the basis of a proof of accounting. Each journal entry contains:
business transaction date
type and identification number of the proof of accounting which is the basis of an entry and its date, if the date is different from the date of transaction
comprehensive text, abbreviation or code of transaction; written explanations of these texts, abbreviations or codes must be provided
journal entry amount and date
definition of accounts the journal entry refers to
The entries in a ledger and on general ledger’s accounts should be interrelated in a way allowing their verification. Comarch ALTUM user may check: Ledger number and number of a journal entry in a ledger.
Number in General Ledger – number of a journal entry in the general ledger. Numbers of unconfirmed journal entries contain the letter D.A confirmed journal entry receives a successive ordinal number.
Number in Ledger – number of a journal entry in an indicated ledger
Account Filter – this functionality allows the preview of all posting operations performed in the system. Journal entries can be filtered on the list by: day, month, year, posting period, accounts, ledgers, document status, currency, accounting period, partial accounting period, and VAT rate.
Accounting Notes – they are used for registration of documents different than VAT documents (VAT purchase invoices and VAT sales invoices). These documents could be: regular bills from VAT-exempt entities, documents connected with payment for the business trips. The accounting notes can be also used for entering of journal entries regarding different types of posting operations performed during an accounting period e.g. transferring prime cost at the end of month, paying sales TAX etc.
The main application of the accounting notes comes down to the registration of all (non-VAT) documents which are connected with a business entity and which should be posted on the entity’s clearing account and then paid.
2) Accounting Structure:
Chart of Accounts – this is an accounting tool used for registration of business transactions on up-to-date basis which are expressed as monetary value. Setting of chart of accounts is a very important element in organizing an accounting structure in the company. It is also important for ensuring proper work with the system. When preparing the chart of accounts, it is important that the accepted rules for keeping the books would ensure:
reliable and verifiable registration of transactions so that the estate, the financial position, and the financial result of an entity were properly presented; this especially refers to appropriate registration of balances of assets and liabilities, costs, losses, revenues and profits
data necessary in any kind of VAT payments and clearings with customers, vendors and employees
efficient internal control of business transactions and balance of the estate components possessed by an entity with the right of decision about them
possibility of drawing up a financial statement and other statements and declarations
Trial Balance – this is a statement of journal entries registered on accounts. Activity is a list of all business transactions posted on an account. Balance is a statement of Debit and Credit sides, that is all activities recorded on a book account in given accounting period – it also includes an opening balance.
Registration of business transactions should be based on a double-entry bookkeeping system which allows to keep the balance equilibrium. When creating a book account, total beginning balances of assets components recorded on one account being debited equal total beginning balances of liabilities components recorded on one account being credited. This double-entry bookkeeping system is further observed within the accounting period. It causes even increase of debited and credited activity.
Due to mass journal entries, which cause high probability of occurring different kind of errors, periodical control of the balance equilibrium is necessary. That control tool is the trial balance which is drawn up periodically.
Besides the control function, the trial balance also provides information. It provides data necessary for drawing up of financial statements, such as balance sheet, profit and loss account, cash flow statement etc., because it is the source of information about the balance of particular components of the estate and the capital.
3) Opening Balance
Opening Balance – each company’s accounting system is based on entering appropriate values on accounts the company’s activity is based on. The opening balance documents determine initial balances on accounts in given accounting period. The values of the opening balance are entered by the user.
4) Posting Schemes
Schemes – these are the templates of journal entries by which documents are posted. They allow for the automatic creation of journal entry on the basis of an accounting document. They are based on recurrence of actions in accounting.
Recurring Posting Schemes – these posting schemes are used for multiple recurring posting of certain amounts on particular accounts, that is for posting of operations performed regularly, e.g. every month, quarter, year.
5) Statements
Financial Statements – statements are one of the tools evaluating the company’s financial condition. They create a so-called internal information database for carrying out an analysis. They are of information quality because they are calculated on the basis of data registered on accounts. This function provides the user with tools allowing to build the above-mentioned reports, as well as different types of internal reports which are necessary in analyzing the company’s estate and financial situation.
6) Tax Returns
Tax Returns – in accordance with the Goods and Services Tax Act, the taxpayer are obliged to submit tax returns VAT-7. This functionality enables flexible creation of tax returns so that each user can adjust them to the profile of his/her enterprise. The mechanism of tax returns allows the user to define tax returns according to individual preferences:
Defining the layout of a tax return,
Defining the method of retrieving data, values for particular fields of tax returns,
Defining new versions of forms,
Defining different types of tax returns, e.g. for income tax.
7) Other
Bank Reconciliation – this functionality enables to reach an exact ending balance of a bank account usually at the end of a given month. It compares a bank statement sent by a bank at the end of a given period against figures recorded on accounts (journal entries derived from cash-bank transactions and checks).
VAT Accounts – they are used for storing of data regarding sales TAX. VAT accounts allow VAT-payers to register documents in VAT accounts in the form of invoices. The entries entered into VAT accounts are fully modifiable. They can be also entirely deleted. Upon posting, the entry is no longer editable. The program allows the creation of any number of VAT subaccounts, both within sales account and purchase account.
First Event – the first event maintenance option can be activated in the accounting configuration of the system. This functionality separates sales/purchase invoices from VAT sales/purchase invoices in accordance with the common practice of the Ukrainian market. These documents are registered in the system individually. VAT invoices, in the first event functionality, contain, additionally, the information about a product. A VAT invoice can be also issued as an advance payment for purchase of a product, that is for part of the ordered product. The first event maintenance functionality is used on the Ukrainian market and it replaces the traditional VAT accounts.