DPN to brokerwolf Preparing for Migration Tip Sheet #16 General Ledger Account Review

Transcription

1 DPN to brokerwolf Preparing for Migration Tip Sheet #16 General Ledger Account Review ACCOUNT STATUS General Ledger Accounts set to inactive that do not have any activity or balances within the period to be migrated will not be brought over to the brokerwolf system. This allows you to begin brokerwolf with a clean chart of accounts. BOTH the Master Chart of Accounts and the General Ledger Chart of Accounts will be used during the migration analysis. The Master Chart represents the main account number only and is not company specific. Multiple Master Charts are accommodated by using a Business Type within the Master Chart and the Company Parameters. The Master Chart concept provides an easy way to maintain consistency across multiple companies for consolidated financial reporting. The only purpose for inactivating a Master Chart account is to eliminate it during a build of a new company s General Ledger Chart. For example, if you use one Master Chart not by Business Type and you want to create a chart for a new company that does not do real estate you can inactivate the real estate specific accounts in the Master Chart, do the build for the new company s General Ledger Chart, and then re activate the real estate specific accounts in the Master. Migration analysis has brought to light that the Master Chart hasn t always been re activated during this process. It is important that you review the General Ledger Chart of Accounts for all companies being migrated against the Master Chart(s) of Accounts. The Active/Inactive Status must be consistent. If you have a General Ledger Account in any company to be migrated set to active status, the Master Chart must also reflect active status on that account. Use GL 1 1 to access the Master Chart of Accounts use F7 (in/re) to change the Status. ACCOUNT TYPE The migration analysis has also brought to light some challenges with the Account Type settings on the Master Chart and General Ledger Chart of Accounts. Please review your Master Charts and General Ledger Charts for all companies to be migrated to confirm Account Types are correctly reflected per the table below: REV 2/05/13 1

2 Account Type Appropriate Usage A (Accounts Payable) Only one account should be identified as your Accounts Payable account in each chart. The A (Accounts Payable) Account Type identifies your vendor accounts payable general ledger account number. B (Bank Account) All bank accounts should be flagged as B Account Types even if you do not write checks from the account. This flag identifies accounts to be included in cash on hand for the cash flow statement. D (Asset) The D Account Type is only used if you are using the DPN Fixed Asset Module. The D Account Type identifies accounts where the asset value is posted such as Furniture & Fixtures. When posting accounts payable or journal entries to an account identified as a D Account Type, an additional prompt will display asking if you want to enter the asset information. The D Account Type should not be used on general ledger accounts where depreciation expense or accumulated depreciation are posted. E (Escrow) The E Account Type is used to identify escrow liability accounts. It is not used on the escrow bank accounts those should be set to B. I (Inventory) The I Account Type is only used if you are using the DPN Inventory Module. The I Account Type identifies the general ledger accounts where inventory values are posted. L (Allocation) The L Account Type facilitates the prompt asking if you want to use the allocation tables when posting accounts payable or journal entries. The L Account Type is most commonly created for an entire range of accounts by department when the processor wants to allocate a posting, they enter the correct GL account with the allocation department extension. That specific account is not posted only the departments in the allocation table are posted. The allocation department should remain zero balance. M (Property Management) The M Account Type is only used if you are using the DPN Property Management Module. The M Account Type identifies your property management account. R (Trade A/R) The R Account Type is only used if you are using the DPN Trade Receivables Module. It should not be used to identify your agent receivables or third party property receivables managed through subsidiary ledger. V (Insurance A/R) The V Account Type is only used if you are using the DPN Insurance Receivables Module. W, P (Work in Progress) The W or P Account Type is only used if you are using the DPN Job Costing Module. Use the Change option in either the Master Chart of Accounts or the General Ledger Chart of Accounts to correct these Account Types. REV 2/05/13 2

3 ACCOUNT CLASSIFICATION In the brokerwolf system, each General Ledger account number contains the classification: Asset Liability Equity Revenue/Sales Cost of Sales Other Income G/A Expenses Income Taxes If you are currently using Financial Analyst, the settings from Financial Analyst will be used in the migration to set your General Ledger account number classifications on brokerwolf as follows: DPN Master Chart Account Class A (Asset) L (Liability) Q (Equity) R (Revenue) E (Expense) Blank (Not Applicable) brokerwolf General Ledger Classification Asset Liability Equity Revenue/Sales G/A Expenses No Classification will be assigned Other Income* Cost of Sales* Income Taxes* *These brokerwolf classifications will not be used during data migration. Your trainer will assist you in reviewing the classifications assigned during data migration and adjusting them. If you are not currently using Financial Analyst, instructions are included in this document for turning the option on and setting these fields. NORMAL DEBIT/CREDIT SETTING In the brokerwolf system, each General Ledger account number is defined as a normal debit or credit balance. Within DPN only the financial format lines carry the normal debit/credit setting. If you are currently using Financial Analyst, the settings from Financial Analyst will be used in the migration. If you are not currently using Financial Analyst, instructions are included in this document for turning the option on and setting these fields. REV 2/05/13 3

4 INSTRUCTIONS FOR TURNING ON FINANCIAL ANALYST TO COMPLETE CLASSIFICATIONS AND NORMAL DEBIT SETTINGS If you are not currently using Financial Analyst you will need to complete the following steps before your data migration: Using SS (System Setup), select Option 2 System Parameters, select GL (General Ledger), select Option 1 Change <SS 2 GL 1>. The following screen will display: Set the Use BackOffice Analyst? field to Y. Do not change any other options on this screen. Use the <F9> Key to move to the bottom of the screen. Use the <F4> Key to Update the General Ledger Parameters. IMPORTANT NOTE: Keep the Use BackOffice Analyst? field set to Y even though you do not use Financial Analyst. It is quite possible you will need to add new general ledger account numbers to accommodate the migration when doing so, please add them to the Master Chart first to make sure these fields are set appropriately. Also, you may need to reactivate some general ledger accounts currently identified as inactive. When re activating these accounts, you will need to confirm that the normal debit/credit setting and account classification fields are correct. This setting will open up two new fields on your Master Chart of Accounts Normal Debit or Credit Account Class as shown on the table above If you are using more than one Master Chart of Accounts, all Master Charts used for the DPN companies to be migrated must be changed to define the normal debit/credit setting and the Account Class for all active accounts. Both fields can be changed on each individual Master Chart Account by using the <F4> Change option in the Master Chart of Accounts. Or you can use General Ledger File Maintenance, Option 35 New Fields for Backoffice Analyst <GL 1 35>. This option will allow you to set either the Normal Debit/Credit field or the Account Class field by range of account. REV 2/05/13 4

5 SUGGESTIONS: For accounts such as fixed assets and their associated accumulated depreciation, classify both as assets and set them all as normal debit accounts. The accumulated depreciation accounts will be reflected as contra assets. If you consider your commission expense accounts contra revenue accounts rather than cost of sale expense accounts, you can classify them as revenue accounts set them to normal credit accounts and they will be reflected as contra revenue. If you have expense accounts where you post charges that are billed back to agents and you have corresponding contra expense accounts where you post the receivables booked to agents, you can classify the contra expense accounts as expenses set them to normal debit accounts and they will be reflected as contra expenses. REV 2/05/13 5