Accounting entries
An accounting entry is an operation consisting of recording a commercial or financial transaction using a precise and formal coding system, i.e. accounting accounts.
In AOS, an accounting entry is referred to as “move”.
Accounting entries must :
-
Be entered in journals (by type of flow);
-
Be balanced according to the double-entry principle (total debits = total credits);
-
Be justified by an economic event, which is often reflected in a supporting document (invoices, bank statements, etc.);
-
Be inalienable. Once the entry has been validated, it must not be possible to modify it;
-
Be dated.
Configurations
First, install the Accounting module.
Access: Application config → Apps management → Install the Accounting module
Once the module is installed, move on to its configuration.
Access: Application config → Apps management → Accounting, configure
Entering an entry in AOS
Automatic entry
Most current entries are generated automatically by the system. Purchase invoices (generated via invoicing), sales invoices, payments, expense reports (managed by the NDF application), depreciation, invoices not yet received for unbilled delivery notes and prepaid expenses from cut-off date management, all generate entries automatically.
However, a certain number of operations (outside the system) will require a manual entry. These include, for example, invoices for overhead expenses not covered by orders or contracts, salaries and social security charges, etc.
There are three tools that can be used to record these operations:
-
Mass entry (batch) of accounting entries;
-
A simple input of an accounting entry ;
-Import entries via AEF (Accounting entries file : Expert level of training).
Entries menu
Access: Accounting → Moves → Moves
You will access the Moves menu in the list view, which contains all recorded entries.
In this menu, you will find a list of all the entries that have been created, with the exception of cancelled entries.
However, it is possible to filter entries according to their status. For example, select “Cancelled” to display cancelled entries.
The list of entries contains all general information you can find on a move file :
-
Reference: for moves in the draft status, the reference number will be temporary, and will change when you change it to another status (this number will become a sequence with characters and numbers).
-
Status (New ; Daybook ; Accounted);
-
Functional origin: for example, this could be an entry from Fixed Assets or Payment etc.
-
Journal: a move (entry) is associated with a journal. These journals are also displayed (Manual D.O. / Purchases / Sales, etc.).
-
Period: find the time period during which the entry was made.
-
Partner / Company: the partner and company to which the entry is associated are also displayed.
Create an entry
When you create an entry via this interface (Moves menu), there are automatic functions which will assist the user.
For example, if you select the APOLLO supplier and the purchase journal, you will automatically retrieve the payment method, the payment terms from the partner record and the expense account that has been defined by default.
By clicking on “Generate counterpart”, the VAT (value added tax) account and the supplier account, as well as the amounts calculated on the basis of the pre-tax amount, are automatically updated.
The “Reverse” button is found at the top of the page.
Reverse: clicking on the “Reverse” button automatically creates the reverse entry, i.e. lines that were in debit will be in credit and vice versa.
Various options can be activated for mass reversal.
To reverse several lines, press Ctrl+click.
Access : Accounting → Moves → Moves → +
-
Company: enter the company (in AOS, you can manage multiple companies).
-
Journal: Select the journal (Purchases / Sales / Payment etc).
-
Functional origin: enter the functional origin. This field allows you to detail the origin of the entry.
Functional origin values can be set in the journal.
If you select the Purchases journal, the Functional origin field will not be available as it will retrieve the value entered directly in the journal configurations and apply it to the entry. :::
-
Period/Date: enter the period and date. The period depends on the date. Periods can be configured in the application and depend on a fiscal year.
-
Partner: select the partner. Selecting a partner enables certain fields to be filled in automatically, as this information has already been entered on the Partner file (for example: tax position, payment condition, bank details). These fields can still be modified.
For some journals, it is necessary to select a partner. For example, the Purchases and Sales journals require to fill the partner field.
-
Third party payer: this field allows you to designate a third party other than the main third party (partner) for the entry, who will be responsible for making the payment on behalf of the main third party. You can configure this field directly in the Base application (access: Application config → Apps management → Base, configure).
-
Currency: enter the currency. If you have customers or suppliers abroad, it may be useful to enter the currency (which will be used in the entry).
Access : Application config → Apps management → Base, configure → open the Currency conversion tab.
Configure exchange rate management on the Currency Conversion tab.
Exchange rate management can be set either manually or retrieved automatically from an external source.
-
Tax position: the tax position is used to automate tax equivalents. When importing and exporting, you will be able to select an exempt tax.
-
Payment mode: select the payment method (cash in / cash out / credit card / transfer etc).
-
Payment condition: define due dates and manage due dates using the payment terms.
-
Origin: this origin can be made mandatory via the journal. It is used to enter a document of origin (for example, an invoice reference).
-
Origin date: this can be the date on which an invoice was issued.
-
Description: enter a text to give a description. This will enable the description to be pre-filled on the entry lines.
-
Move lines: in the Move lines tab, add a new move line by clicking on +New. Then fill in the information.
-
Accounting account: select an accounting account. The accounting accounts will be displayed according to the journal settings (the authorised accounting account families). For example, you have chosen the Purchases account.
-
Debit/Credit: enter a debit or credit.
-
Tax: select a tax.
-
Description: leave a description for the entry lines, if required.
-
Confirm: click on Confirm once you have finished entering information on a move line.
-
+Generate counterpart: for certain journals, such as Purchases/Sales/Credit notes, you will be able to generate the offsetting entry.
Note that in the application settings, you need to define default customer/vendor accounts and tax accounts beforehand in order to be able to use the “Generate offsetting entry” action. Clicking on the “Generate counterpart” button creates a new tax line in the move lines table.
Generate tax lines: this button allows you to generate tax lines only, but without the line for customer/vendor accounts according to functional origin (as is the case with the “Generate counterpart” button).
If you do not opt for the “Generate counterpart” action, and you only generate tax lines, remember in this case to add the line for customer/vendor accounts manually.
A validated entry can no longer be modified or deleted. :::
Status of the entries
New → Simulated → Daybook → Accounted / Cancelled
When an invoice is broken down (ventilated) or an entry is not validated, the creation status will be “Daybook”. The entry can be modified or deleted.
As we saw earlier, it is possible to bypass this draft stage via the configuration. For example, the document has a provisional number #8.
When an invoice is validated by clicking on “Account” (entry by entry or via batch by selecting several lines), the entry takes on the status “Accounted” and a definitive sequence number, for example EP_VTE230001.
The entry cannot be modified and cannot be deleted.
Open an entry line
You can always click on a move line in the Move lines table to display more details. A pop-up Writing line window will open. Here you will find information and tabs with options to activate.
Dates: here you will find the same information that has been entered on the form, for example the date and the date of the supporting document.
Due date: the due date is an additional concept. The due date is only carried by customer or supplier accounts.
To have a due date, the accounting account must have activated the Use for partner balance feature.
This feature needs to be activated in order to generate a due date.
The due date is used to pay invoices in the other AOS modules.
Accounting account: this is where you will find the accounting account that has been automatically selected via the settings. It can also be selected manually. It can be modified directly on the pop-up window of the entry line.
Partner: the third party is also automatically retrieved and cannot be modified (the third party must be common to all move lines).
Amount in move currency: this amount will be equal to the amount of the entry.
Exchange rate: if you apply an exchange rate, it will also be displayed.
Debit/Credit: you will find the debit and credit from the entry line.
Origin: retrieved from the accounting entry record.
-
Terms tab: open the due date tab on the Move line pop-up window. In this tab you can view all the due dates that have been generated by the payment condition and by the entry. For example, you can define the payment condition as “30 days end of month”. A due date is essential for everything to do with payment (the payment session / payment entry).
-
Generate fixed asset tab: from a move line, generate an asset line. This option can be useful, for example, in the case of a purchase entry line.
-
Currency tab: use this tab to find the conversion rate and the amount.
-
Other tab: here you will find information about the tax, the VAT system and the reconciled amount (in the case of a bank reconciliation, for example).
Allow multi invoice terms
You also have the option of managing multiple due dates, in the case of payment by instalments, for example. You can do this via the multi-deadline payment terms.
Remember to activate multi-deadlines beforehand.
Access: Application config → Apps management → Accounting, configure → activate the option Allow multi invoice terms.
Enabling this option will allow you to have multiple payment terms (for example, a 30 / 50 / 20 % due date).
You can change the multi payment terms in the payment terms section.
As a result, these payment terms will generate 3 different payment deadlines with 3 different dates.
Accounting
Access: Accounting → Moves → Moves → click on the “Account” button
Account: to account, select the lines you wish to validate (New and/or Daybook status) and click on the “Account” button.
The system informs you that the entries are irreversibly integrated into their respective journals and cannot therefore be deleted or modified.
Cancel: the only way to cancel an entry is to make the reverse entry (reversal).
Mass entry
Mass entry is an entry of multiple lines in the same journal. There is very little assistance, so this feature is aimed at the most experienced accountants.
A check can be made to ensure that the entry is balanced.
Journals
Access : Accounting → Configuration → Financial → Journals
Access : Accounting → Configuration → Analytical → Analytical journals
The journal is a compulsory accounting document which records, that is kept in a chronological and continuous manner, all the economic operations carried out by the company during a period known as the financial year.
In Axelor, the journals are auxiliary: Sales, Purchases, Cash receipts, Cash disbursements, Miscellaneous transactions, etc. On the interface, you can see all the transactions that have been written on this journal.
You can create as many journals as you like in AOS, which can then be configured on a Company file (Accounting app).
Acces : Application config → Accounting, configure → open a Company file → open the Journals tab.
Accounting entries posted to a journal will be visible from that journal.
In the same way as for the general ledger, if you filter on a particular journal using a group by account, you will be able to carry out all your analyses.
Types of journal
Access : Accounting → Configuration → Financial → Journal Types
Access : Accounting → Configuration → Analytical → Analytical journal types
Journal types are used to classify journal (Purchases / Sales etc).
Journal configuration
Sequence: a sequence must be set up for each accounting journal. All entries posted to a journal will use this sequence.
The authorisation of daybook or simulated status entries can be done on the company's accounting configuration and on the journals.
- Acces : Application config → Accounting, configure → open a Company file → open the Journals tab → Activate “Simulated Moves”
Note, if you activate “Simulated Moves” on a Company file, you will have to also activate it on the journal file in order to apply it.
Acces : Accounting → Configuration → Financial → Journals → open a Journal → open a Configuratios tab → activate “Authorize simulated move”
- Acces : Application config → Accounting, configure → open a Company file → open the Journals tab → Activate “Accounting Daybook”
Move line control settings: only entries that impact the accounting accounts, set up in this table, can be listed in the relevant journal.
Basic regulatory statement
Balance
Access: Accounting → Accounting Reports/Exports → Accounting Reports
Balance sheet: document that groups together all of a company's accounts for a given period.
Entries can be filtered by accounting account and/or by partner.
-
Report type: select the type of report (for example, General Balance).
-
Export type: select the PDF, XLSX or ODS export format.
-
Period/Fiscal year: select the period to be edited (Fiscal year or period or date to date).
-
Comparative balance: compare with another period.
General Ledger
General Ledger: is a document that groups the entries for a period by account. In the same way as the trial balance, it is possible to prepare a general ledger from the accounting reports.
However, if you don't need to edit a ledger, or if you need to export a ledger with special filters, you can display the entries in the form of a general ledger from the entry lines. To do this, you need to create a group by accounting account and sort in the order of the accounts.
In this way, you will obtain the same result as with reports in raw format, with the option of adding advanced filters from the advanced search option.