Getting Started Guide Version 6.3

Getting Started Guide Version 6.3 Financial MicroSystems, Inc.

Client Ledger System documentation copyright 2012 Financial MicroSystems, Inc. All rights reserved. Absolutely no part of this documentation may be copied, photographed, reproduced, translated or reduced to any electronic medium without the express written consent of Financial MicroSystems, Inc. The software described in this documentation is furnished under a license agreement. Information contained in this documentation is subject to change without notice, and does not represent a commitment on the part of Financial MicroSystems, Inc. Financial MicroSystems, Inc. makes no warranties, either expressed or implied, regarding this computer software package, its merchantability, or its fitness for a specific purpose. The exclusion of implied warranties is not permitted by some states. The above exclusion may not apply to you. This warranty provides you with specific legal rights. There may be other rights which you have which vary from state to state. Client Ledger System is a trademark of Financial MicroSystems, Inc. Other brands and products are the trademarks of their respective holders and should be noted as such. First printing, August 1990. Second printing, August 1992. Third printing, April 1994. Fourth printing, November 1994. Fifth printing, November 1995. Sixth printing, November 1996. Seventh printing, October 1997. Eighth printing, October 1998. Ninth printing, October 1999. Tenth printing, November 2000. Eleventh printing, November 2001. Twelfth printing, December 2002. Thirteenth printing, December 2003. Fourteenth printing, December 2004. Fifteenth printing, December 2005. Sixteenth printing, December 2006. Seventeenth printing. November 2007. Eighteenth printing. November 2008. Nineteenth printing. November 2009. Twentieth printing. November 2010. Twenty-first printing January 2012. Twenty-second printing. December 2012. Financial MicroSystems, Inc. 3000 Langford Road, Suite 2500 Norcross, GA 30071 Telephone: (770) 446-5709 Fax: (770) 446-1802 www.clientledgersystem.com

Table of Contents Chapter 1 CLS Overview... 1-1 CLS Features... 1-2 CLS Programs... 1-6 CLS Ledger Data Files... 1-11 System Requirements... 1-13 Chapter 2 Installing CLS... 2-1 Installing CLS... 2-2 Setting Up CLS Icons in Microsoft Windows... 2-5 Additional Installation Considerations... 2-8 Starting CLS... 2-14 Initializing CLS... 2-16 CLS Technical Support... 2-22 Chapter 3 How to Use CLS... 3-1 Ledger Start-up... 3-2 CLS Menus... 3-4 Timesaving Keystrokes... 3-6 Lesson I: Entering Transactions... 3-8 Lesson II: Reviewing Unposted Transactions... 3-17 Lesson III: Posting Transactions... 3-19 Lesson IV: Editing Transactions... 3-21 Lesson V: Querying an Account... 3-24 Lesson VI: Querying Transactions... 3-26 Lesson VII: Printing Reports... 3-28 Lesson VIII: Batch Processing CLS Reports... 3-34 Chapter 4 Creating a CLS Ledger... 4-1 How to Create a Ledger... 4-2 Checklist... 4-12 Chapter 5 CLS Concepts... 5-1 Accounting Cycle... 5-2 CLS Chart of Accounts... 5-3 Departmentalizing a Ledger... 5-11 End of Period Processing... 5-14 Entering Budgets... 5-16 Entering History... 5-18 Financial Statements... 5-20 Income Tax Calculations... 5-36 Inventory Adjustments... 5-37 Job Costing... 5-38 Ledger Consolidation... 5-41 Reconciling a Bank Statement... 5-42 Transaction Processing... 5-44 Transmittal Letters... 5-47 i

Table of Contents Appendixes A: Installing Novell Netware 3.xx or 4.xx Btrieve... A-1 B: Additional Update Installation Steps... B-1 C: Converting Older CLS Ledgers to Version 6.1... C-1 D: Limited Edition Documentation Changes... D-1 E: General Ledger Documentation Changes... E-1 F: Glossary... F-1 G: CLS Program Codes... G-1 H: CLS Ledger Limits... H-1 I: CLS End-User License Agreement... I-1 ii

Chapter 1 One CLS Overview CLS Features... 1-2 CLS Programs... 1-6 CLS Ledger Data Files... 1-11 System Requirements... 1-13

CLS Overview 1.1 CLS Features Financial Statements Client Transmittal Letters, Cover Page, Table of Contents, Footnotes and Notepad Balance Sheets and Profit and Loss Statements with subsidiary schedules Multiple current-earnings accounts on the Balance Sheet Flexible user-defined Profit and Loss Statement formats Statement of Income and Retained Earnings Standard and comparative Statement of Changes in Equity Budget and prior-year comparisons Fully departmentalized reports with division-level reporting Standard and comparative Cash Flow Statement (FASB 95) Standard and comparative Statement of Changes in Financial Position Ledger consolidation can merge up to 25 companies Work-in-Progress sub-ledger for job cost accounting Ratio Analysis Payroll Features An integrated passive payroll system including: - Eight or 16-column Payroll Journal - Laser-printed W-2s, W-3s, 1099s/1098s and 1096s - Dot-matrix W-2s and 1099s/1098s - Federal 941 worksheets with tax liabilities - Laser-printed federal 941, 941B, 943 and 944 forms - Federal 940 unemployment tax worksheets - Laser-printed federal 940 unemployment tax forms - Federal unemployment wage listings - State unemployment contribution worksheets - State unemployment continuation sheets (OCR-scannable where required) - State unemployment audit report 1-2 CLS Features

CLS Overview Supporting Reports Bank Reconciliation Formal Journal Entries General Ledger with optional annual detail Leadsheets Transaction Register sorted by source and reference or by account number Trial Balance (four formats) Standard and comparative Trial Balance Worksheet Transaction Processing Full screen transaction editing Automatic creation of accounts and employee or vendor records during transaction entry Edit existing accounts and employee or vendor records during transaction entry Memorize and autofill descriptions, accounts and amounts during transaction entry Auto-repeating/auto-reversing entry types Both formal and pro forma journal entries Calculated journal entries Departmental Cost Allocation Additional Features On-screen display of all reports Write reports to ASCII files Flexible ledger setup, including the ability to copy any existing Chart of Accounts, supplemental report formats, income tax summary, financial ratios and more Automatic calculation of estimated income tax expenses and cost of goods sold Track billable write-up time and the value of that time Pop-up help screens Pop-up calculator with scrolling tape Portrait and landscape report formats Batch processing of reports, with collated report sets Client Lists and Mailing, Diskette and File Folder Labels Depreciation schedules, including MACRS, ACRS, straight line, declining balance, and sum-ofthe-years-digits depreciation methods Loan amortization schedules Password access for security Quick and efficient ledger backup and restore Format disks from within CLS Shell to the Command Prompt/DOS from within CLS CLS Features 1-3

CLS Overview Interface with Quicken, QuickPay, QuickBooks, Peachtree Software, One-Write Plus, BASS Payroll and Insta-Pay Multi-Company payroll Import from CLS, CLS ~ The Limited Edition, CLS ~ General Ledger, CLS ~ CheckWriter and CLS ~ Remote Entry Export CLS current period and year-to-date transactions to an ASCII file Export a trial balance to an ASCII file Export CLS accounts and balances to Lotus-compatible spreadsheet programs Optional Companion Products CLS ~ CheckWriter A stand-alone product that allows you (or your clients) to print checks, then import them into CLS. MICR and active payroll add-ons are available for the CheckWriter. CLS ~ Remote Entry A stand-alone CLS product that allows transaction entry at a remote site. CLS ~ Tax Package Interface Provides an interface with income tax and trial balance programs: GoSystem, Lacerte, ProSystem fx, Intuit ProSeries, UltraTax, Automated Client Engagement (ACE), Accountants Trial Balance (ATB), Perfect Balance and Work Papers Plus. You may also export a trial balance to an ASCII file. CLS ~ W-2/1099 Magnetic Media Adds W-2 and 1099/1098 magnetic media/electronic reporting capabilities to CLS. CLS ~ XML 940, 941 and 944 Allows you to submit 940, 941 and 944 information electronically. CLS ~ Unemployment Plus Preparation of Alabama UC-CR4, Arizona UC-018, Arkansas DWS-ARK-209B, California DE-7, Connecticut UC-2/5A, Florida UCT-6/6W, Georgia DOL-4, Illinois UI 3/40, Kansas K-CNS-100, Kentucky UI-3, Louisiana ES4-B/C, Maryland DLLR/OUI-15, Michigan UIA-1020, Minnesota DEED-1 (file copy), Mississippi UI-2/3, Nebraska UI-11T, New York NYS-45-MN, North Carolina UI-101, Ohio JFS-66111, South Carolina UCE-120/101, Tennessee LB-0456/0851, Texas C-3, Virginia VEC-FC-20 and Wisconsin UCT-101. CLS ~ SUTA Magnetic Media Provides SUTA magnetic/electronic reporting for Alabama, Arizona, Arkansas, California, Connecticut, Florida, Georgia, Illinois, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Nebraska, New Jersey, North Carolina, Ohio, South Carolina, Tennessee, Texas, Virginia, Wisconsin and Wyoming. Financial Statements CLS provides a wide array of standard and departmental reports, including current and prior-yearcomparative Balance Sheets and Profit & Loss Statements and a budget-comparative P&L (using annual or period budgets). Standard and comparative reports are also available for the Cash Flow Statement (per FASB 95), Statement of Changes in Financial Position and Statement of Changes in Equity. A unique feature of CLS is the ability to define a special format Profit and Loss Statement with columns selected from a list of 39 pre-defined column types. Columns may include current-period and year-to-date totals, prior-year history, budgets, ratios, percentages, variances, and percentagevariances. 1-4 CLS Features

CLS Overview Batch processing of reports lets you run CLS reports unattended. Request varying numbers of report copies for many different report selections and print up to 99 collated report sets for any or all ledgers in a path. You may also change the order in which your reports print. Passive Payroll A fully integrated after-the-fact payroll gives you complete employee and vendor records. CLS provides an eight or 16-column payroll journal, an employee list sorted by employee number, last name, social security number or an optional sort key, a new employee listing, and an employee missing-information report. You may print W-2s and 1099s/1098s on preprinted forms using a laser or dot-matrix printer. You may also laser-print the entire form (except Copy A of 1099/1098/1096) on plain paper. W-3 and 1096 transmittal forms may be laser-printed on preprinted forms or plain paper. Blank forms and form instructions may also be laser-printed. Print masks are available for all forms to make sure the alignment is correct. In addition, CLS prints 941, 943 and 944 forms and worksheets, 940 forms and worksheets, and state unemployment continuation sheets (OCRscannable where required). Entering and Posting Transactions The extensive use of default values and reference numbers, and the ability to memorize transaction descriptions makes transaction entry fast and efficient. After transactions are entered, they are posted to the general ledger and payroll master files to update appropriate account and employee balances and complete the process of linking transactions to account and employee records. Audit Trail You may print a Transaction Register listing posted transactions for the current period, or for yearto-date if you selected the annual detail option. Transactions may be sorted by account number or by transaction type (source code), which lets you print a Cash Receipts or Cash Disbursements Journal along with other transaction registers. You may also display or print a list of unposted transactions. You may print a General Ledger, matching accounts in the master file with appropriate transactions. The General Ledger lists beginning and ending account balances with supporting transaction detail for the period. A Trial Balance or Trial Balance Worksheet may be produced to facilitate the closing of an accounting period. Flexibility Since CLS processes each ledger separately, you may add new clients at any time regardless of accounting method, payroll situation, Chart of Accounts structure or reporting requirements. You can quickly copy any existing Chart of Accounts, report format and additional information, so setting up new clients is easy. CLS Features 1-5

CLS Overview 1.2 CLS Programs CLS program descriptions are arranged in alphabetical order by program I.D. The Accounting Transfer (AT) program imports ledger transactions created by the following software packages: Client Ledger System Software Insta-Pay Multi-Company One-Write Plus (DOS, Windows) Peachtree Accounting for Windows Peachtree Complete Accounting for DOS QuickBooks (Windows and DOS versions) Quicken (Windows and DOS versions) Quick Payroll TCS Software You may import summary Accounts Payable, Accounts Receivable and Payroll activity from Peachtree Complete Accounting, and TCS TOTAL or 1st Accounting. You may import any or all journals from Peachtree Accounting for Windows. You may also import TCS Inventory, Fixed Assets and Debt Service activity. The interface with Quicken lets you import all check activity, including payroll checks. The interface with Insta-Pay Multi-Company Payroll lets you import payroll checks. A list of the imported transactions may be printed. You may also export CLS transactions, a trial balance, a Chart of Accounts, a list of employees or a client list. The Batch Processing (BP) program prepares many CLS reports in batch mode. You can select the reports to be printed or execute previously defined report selections. You can request reports for multiple ledgers, print up to nine copies of each report and print up to 99 collated sets. You can change the order in which your reports print. The Balance Sheet (BS) program prepares a standard or prior-year comparative Balance Sheet, a three, six or 12-period trend analysis, and a standard or comparative Statement of Changes in Equity. The Bank Reconciliation (BR) program lets you reconcile up to thirty bank accounts per ledger. The Ledger Backup/Restore (BU) program copies a ledger's data files to or from another disk drive. The backup routine may be performed at any time during the accounting cycle. You may also use this program to list files on a diskette or format a disk from within CLS. 1-6 CLS Programs

CLS Overview The Computed Transactions (CT) program creates General Ledger transactions for the employer's share of FICA, FUTA and SUTA based on tax rates and limits contained within the payroll master file. You can adjust incorrect employee FICA or SDI. You can use CT to create transactions for estimated federal and state income tax expense and cost of goods sold. You can also use it to create transactions for calculated journal entries. The Depreciation/Amortization Schedule (DA) program provides single-asset depreciation schedules using MACRS, ACRS, straight-line, declining balance, or sum-of-the-years-digits depreciation methods. You may also prepare loan amortization schedules using the declining balance or Rule-of-78 method. The Department File Maintenance (DF) program lets you define departments and divisions for a ledger, including pre-defined X, Y, and Z divisions. You may add, revise, delete and query department information. The Department File List (DL) program prints a list of departments and divisions for a ledger. The Description File Maintenance (DM) program lets you define recurring transaction descriptions for a ledger. You may enter a description and assign a corresponding default account and amount to be used when entering transactions. The DOS Shell Utility (DS) allows you to temporarily exit to the Command Prompt/MS-DOS. The Delete Transactions (DT) program lets you delete posted transactions entered during the current accounting period. Transactions may also be unposted and deleted using the ET program. To provide a proper audit trail, deleted transactions will appear in the ledger and transaction registers (marked deleted) unless they are suppressed. You may limit access to the DT program using the password control function in the System Initialization (SI) program. The Employee File Maintenance (EF) program lets you add, revise, delete and query employee or vendor information. You may also add or revise beginning year-to-date and quarter-to-date balances. The Employee File List (EL) program lists all employer, employee and vendor information contained in the payroll master file. The End of Period Processing (EP) program prepares a ledger to begin a new accounting period. In the account master file, this program adds current month activity to year-to-date balances and sets the current month fields to zero. If the end of period is also the end of a fiscal year, year-todate balances for all income and expense accounts will be set to zero, and the current year earnings will be posted to the appropriate retained earnings account(s). If you wish, you may also close a period or year without bringing balances forward. The effect on the payroll master file is similar: if the end of period is also the end of a calendar year, employee and vendor balances will be reset to zero. The Enter Transactions (ET) program lets you enter transactions and journal entries, including formal, pro forma and calculated journal entries. Transactions are validated as they are entered to minimize errors. Unposted transactions can be edited or deleted. To correct a posted entry, unpost transactions (PT), edit (ET), and then re-post (PT). CLS Programs 1-7

CLS Overview The Ledger Consolidation (LC) program consolidates up to 25 ledgers into a user-defined consolidation ledger. You may use this program to consolidate the individual ledgers of subsidiary companies into a master ledger. The Ledgers on File (LF) program lists all ledgers in a selected data path. You may also use this program to laser-print mailing, diskette and file folder labels. The Ledger Initialization (LI) program lets you create a new ledger and define general information such as the client name, number of accounting periods, period-end dates, account ranges, source code descriptions, statement footnotes, and the transmittal letter address. You may use this program to copy any existing Chart of Accounts, report format, table of contents, footnotes and notepad, income tax summary or financial ratios to a new ledger. This program may also be used to perform ledger file maintenance routines such as deleting a ledger or changing a ledger I.D. The Lock File Release (LR) program is included only with the network version of CLS. Ledger locks remain set in the event of system or workstation failure and must be removed using this routine. The Ledger Start-up (LS) program lets you select the ledger to be processed. The Master File Maintenance (MF) program lets you create or revise the Chart of Accounts for a ledger. You may also use this program to add budget or prior-year comparative balances to a ledger, to create departmental or job accounts, and to renumber accounts. The Master File List (ML) program lists the contents of the general ledger master file for each account, in account number sequence. You can prepare a basic Chart of Accounts, or list all information including current and comparative balances. This program also lists ledger setup detail. The New Features in CLS (NF) program lists features that are new to this version of CLS. The Payroll File Maintenance (PF) program lets you define employee and/or vendor groups (payroll series) for a ledger. You may enter the employer's name, address, and federal and state identification numbers for each series. You can also use this program to enter payroll/vendor journal column definitions and payroll tax rates and limits. The Payroll Journal (PJ) program prepares an eight or 16-column Payroll Journal, showing beginning balances, current period transactions, quarter-to-date and year-to-date balances, and net-pay subtotals and totals. The Profit & Loss Statement (PL) program prepares a standard Profit and Loss Statement, Prior- Year Comparison, Budget Comparison, Year-to-Date and Comparative YTD P&L, three, six or 12- period trend analysis, a budget-only P&L, or a special format P&L. You may also print a Statement of Income & Retained Earnings. The Post Transactions (PT) program posts transactions to and unposts transactions from the ledger and updates account and employee balances in the process. All transactions must be posted before printing financial statements. The Query Account Detail (QA) program displays beginning and ending balances and current or year-to-date transaction detail for a single account. The year-to-date account query allows you to enter a range of periods for which you want to list account detail. This program may also be used to display or print group account balances and display net income for a ledger. 1-8 CLS Programs

CLS Overview The Query Employee Detail (QE) program displays current or year-to-date payroll transactions, or a summary payroll journal, for a single employee or vendor. The year-to-date query allows you to enter a range of dates for which you want to list employee or vendor detail. The Query Transactions (QT) program displays current or year-to-date transaction detail. Transaction queries may be based on a reference number, specific payee, ranges of accounts departments, transaction amounts and employee or vendor numbers. The Ratio Analysis (RA) program lets you create and print financial ratio reports. You may define up to nine ratio reports per ledger. The Report File Maintenance (RF) program lets you create or revise a Cash Flow Statement and a Statement of Changes in Financial Position, or you may define your own basic reports. You may define a maximum of 10,000 lines (0-9999) per report. The Report File List (RL) program lists report lines in line number sequence for the Cash Flow Statement, the Statement of Changes in Financial Position and user-defined reports. The System Initialization (SI) program lets you set system parameters, define payroll options, enter data paths, perform printer maintenance, define passwords, and perform MACRS/ACRS depreciation table maintenance. Although you may revise passwords, they should not need to be changed once you set your system parameters. You may also add, revise or delete transmittal letters and additional documents such as a cover page, table of contents, footnotes, notepad or client bill. Cover pages and transmittal letters may be assigned to ledgers in Ledger Initialization (LI) or in the Transmittal Letter (TL) program, and are automatically customized for each ledger when prepared by the Transmittal Letter (TL) program. The Supplemental Reports (SR) program prepares a standard or comparative Cash Flow Statement, Statement of Changes in Financial Position and several user-defined reports. You can define formats for these reports using the Report File Maintenance (RF) program. The Trial Balance (TB) program matches each account in the account master file with the appropriate ledger transactions and prepares the General Ledger, showing beginning and ending balances and supporting detail. A Year-to-Date Ledger, Trial Balance (four different formats), Trial Balance Worksheets and Leadsheets are also available. The Payroll Tax Forms (TF) program prints W-2s and 1099s/1098s on preprinted forms using a laser or dot-matrix printer. You may also laser-print the entire form (except Copy A of 1099/1098/1096) on plain paper. W-3 transmittal forms may be laser-printed on preprinted forms or plain paper. 1096 forms may only be printed on pre-printed forms. Blank forms and form instructions may also be laser-printed. The Transmittal Letter (TL) program prints the cover page, table of contents, transmittal letters, footnotes, notepad or client bill created in System Initialization (SI). You can also use this program to list all headings and documents on file. The Transaction Register (TR) program prepares a list of all transactions for a ledger. Transactions may be sorted by source and reference or by account number. Annual detail is available as an option. The year-to-date transaction registers allow you to enter a range of periods for which you want to list transactions. You can also display or print a list of unposted transactions. CLS Programs 1-9

CLS Overview The Time-Tracker (TT) program keeps track of billable write-up time for you, and even lets you prepare a simple bill using the transmittal letter program. The Payroll Tax Worksheets (TW) program provides laser-printed 940, 941, 943 and 944 forms on preprinted forms or plain paper. You may also prepare 940, 941, 943, and 944 worksheets, and unemployment contribution worksheets and continuation sheets for federal and state unemployment wage reporting. A state continuation sheet audit report is also available. The Verify File Integrity (VF) program tests all data files for inconsistencies by scanning all records in each data file. If an error is detected, CLS informs you of the problem and you may initiate repair of the file. The Worksheet Interface (WI) program allows you to export CLS accounts and balances to Lotuscompatible spreadsheet programs. 1-10 CLS Programs

CLS Overview CLS Ledger Data Files 1.3 New ledgers are created using the Ledger Initialization (LI) program. Each ledger has its own Chart of Accounts, which may be created for your client's needs or copied from any existing Chart of Accounts. Multiple ledgers may be stored on the same disk, but each is processed separately. To conserve disk space, CLS has been structured to minimize the size and number of data files required. Each ledger consists of a minimum of 7 and a maximum of 15 data files. The CLF0, CLG0, CLJ0, CLK0, CLN0, CLQ0, CLS0, and CLV0 files are optional, and will only be present if certain CLS features are used. The General Ledger Master File (CLA0) contains the Chart of Accounts, along with current period and year-to-date balances, and budget and prior-year comparative balances. The Master File Maintenance (MF) program is used to add, revise, delete and query an account. The Master File List (ML) program lets you print a Chart of Accounts. The Department Master File (CLD0) contains department and division descriptions. The Department File Maintenance (DF) program allows you to add, revise, delete and query departments. The Department File List (DL) program prints all information contained in the department master file. The Ledger Federal/State Payroll Tax Workfile (CLF0) contains the 940, 941, 943 and 944 records created by the Payroll Tax Worksheets (TW) program. It also contains records created by the CLS ~ Unemployment Plus add-on program. The Calculated Journal Entry Master File (CLG0) contains calculated journal entry descriptions created by the Enter Transactions (ET) program. The Journal Entry Master File (CLJ0) contains pro forma journal entries created by the Enter Transactions (ET) program. The Formal Journal Entry Master File (CLK0) contains formal journal entry descriptions created by the Enter Transactions (ET) program. The Ledger Information File (CLL0) contains ledger setup information such as company name, accounting period, period-end dates, and account ranges. The Ledger Initialization (LI) program is used to change information in this file. The Memorized Description Master File (CLM0) contains memorized transaction descriptions. Use Description File Maintenance (DM) to add, revise and delete them. CLS Ledger Data Files 1-11

CLS Overview The Payroll Master File (CLP0) contains employer and employee information including balances used by the passive payroll. The Payroll File Maintenance (PF) program is used to add, revise, delete and query employer information. The Employee File Maintenance (EF) program is used to add, revise, delete and query employee information. The Employee File List (EL) program prints all information in the payroll master file. It also provides an employee list sorted by employee number, last name, social security number or optional sort field, a new employee list, and a missinginformation report. The optional Ledger Text File (CLN0) contains the table of contents, footnotes, notepad and client bill. The System Initialization (SI) program allows you to create and revise these documents. Use the Transmittal Letter (TL) program to print or list the documents on file. The Ledger Ratio Analysis Setup File (CLQ0) contains the financial ratio reports defined in the Ratio Analysis (RA) program, and leadsheets defined in the Trial Balance (TB) program. The Supplemental Report Formats Master File (CLR0) contains the Cash Flow Statement, Statement of Changes in Financial Position and user-defined report formats. The Report File Maintenance (RF) program allows you to add, revise, delete or query report lines. The Report File List (RL) program prints all information in the supplemental report formats file. The Bank Reconciliation File (CLS0) is the outstanding check file used by the Bank Reconciliation program. The Transaction File (CLT0) contains ledger and payroll transactions for a single accounting period or for the entire fiscal year. It also contains information such as source codes, reference numbers, and account and amount distributions. The Cross-Reference File (CLV0) may be used when importing transactions into CLS from another accounting or payroll package. It contains optional translation tables for converting the incoming accounts or employee/vendor numbers to their CLS equivalents. 1-12 CLS Ledger Data Files

CLS Overview System Requirements 1.4 To use this version of the Client Ledger System, you need to meet the following minimum workstation requirements: Pentium processor or equivalent. Windows 7 (32-bit), Windows Vista (32-bit), Windows XP,Windows XP Mode running under Windows 7, Windows 95, 98, Me, Windows 2000/2003/NT, and MS-DOS 6.22. 50 MB available hard-disk space for program installation 530 KB of available RAM (largest executable program size) A laser printer or a dot-matrix printer that can print in compressed-print mode or print 132 columns. In Windows XP, Windows 7 (32-bit) and Vista (32-bit), CLS can use HP-compatible laser printers connected to a parallel port. In Windows XP or Windows XP Mode, HP-compatible printers connected to a USB port can be used if a virtual parallel port has been created with the Net Use command. In Windows 7(32-bit) and Windows Vista (32-bit), the Net Use command can be used to capture a network printer, but a third-party print-capture utility (Printfil) is required when printing to a local HP-compatible printer connected to a USB port. With Printfil, CLS can print standard reports (but not payroll tax forms) using hostbased printers such as bubble-jet, desk-jet or ink-jet printers. CLS is also compatible with both server-based and peer-to-peer networks. System Requirements 1-13

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Chapter Two 2 Installing CLS Installing CLS... 2-2 Setting Up CLS Icons in Microsoft Windows... 2-5 Additional Installation Considerations... 2-8 Starting CLS... 2-14 Initializing CLS... 2-16 CLS Technical Support... 2-22

Installing CLS 2.1 Installing CLS The network version of CLS is compatible with network systems such as: Windows 2000/2003 Novell Netware Windows NT Windows 7, Vista, XP, 95, 98, Me Before Installation 1. New CLS installations CLS Single-User and Network Versions Only Prior to installing CLS, follow the instructions below to create the directory (file folder) where CLS is to be installed: Notes: This step should be skipped for CLS ~ The Limited Edition and CLS ~ General Ledger - the appropriate directory will be created automatically. CLS does not recognize the longer directory names supported by Windows. CLS program and data path names may have a maximum of eight characters and no spaces. a. Right-click on the Start button, and then select Explore. b. Left-click the appropriate drive letter to highlight it. For the single-user version of CLS, this will normally be drive C. For the network version of CLS, this will be the drive letter associated with your server (normally drive F). c. Select File, New, Folder, and enter NEWCLS as the folder name. d. Close the Explorer window. 2. Upgrading an existing installation CLS Single-User and Network Versions Only Prior to installing the CLS update, determine the directory where it should be installed: Note: If you are upgrading from an old version of CLS (version 4.2 or earlier), the new version of CLS must be installed in a new directory (follow step 1 above). a. To determine the current CLS directory, start CLS and select any ledger. At the CLS Program Selection Menu, enter DS. The MS-DOS prompt provides the drive letter and path where the new CLS update is to be installed. 2-2 Installing CLS

Installing CLS b. Type Exit and press Enter to return to CLS, and then press F10 to leave CLS. c. If you are installing the network version of CLS, make sure that no other workstation is currently using CLS. Installation 1. Insert the CLS CD-ROM in your CD drive and wait 20-30 seconds. The installation process should start automatically. If it does not start automatically, click on Start, then Run and enter D:\setup.exe (where D represents your CD-ROM drive). 2. Enter your company name, five-digit customer number, and the product key that appears on your invoice. Follow the on-screen instructions to select the CLS products to be installed, then enter the drive and path where they are to be installed. 3. When the installation is complete, close the installation window. After Installation 1. If you are installing the network version of CLS on a Novell server, remember to exit to the Command or MS-DOS prompt, select the server s CLS program path, and flag all the files in the CLS program path as shareable-read-write : In a Novell Netware version 3.xx environment: f:\newcls> flag *.* srw In a Novell Netware version 4.xx, 5.xx or 6.xx environment: f:\newcls > flag *.* shrw 2. If you are using monochrome monitors with CLS, rename the clcolor.dat file as clcolor.bak. f:\newcls> ren clcolor.dat clcolor.bak 3. CLSPEC Path With the network version of CLS, you may define a path on a workstation containing local CLS configuration files. For example, placing clsys.dat and clsysprn.dat in this path allows you to define system parameters (e.g., default data and backup paths, printer setup, add/decimal mode, etc.) specific to that workstation. If you have color and monochrome monitors attached to the network, placing clcolor.dat in the CLSPEC path for a particular workstation allows you to specify that workstation as having a color monitor. Placing clsysxfr.dat in this path allows you to define import and export parameters specific to that workstation. For workstations where these local files are necessary, the autoexec.bat file for the workstation should be modified to include a line specifying the CLSPEC path where the local files will be stored. If the path is C:\CLSPATH, the line should read as follows: SET CLSPEC = C:\CLSPATH Files needed in the CLSPEC path can be copied from the CLS program path on the server. The path should contain the following files; they will be accessed only by the workstation on which Installing CLS 2-3

Installing CLS they are located: clsys.dat (system parameters) clsysprn.dat (printer control file) clsysxfr.dat (import/export parameters) clcolor.dat (if using a color monitor) 4. If you are installing CLS 6.1 as an upgrade to CLS 4.2 or earlier, follow the Additional Update Installation Steps in Appendix B (e.g., adding new CLS programs, copying transmittal letters, etc.), and Converting CLS Ledgers to version 6.1 in Appendix C. 2-4 Installing CLS

Installing CLS Setting Up CLS Icons in 2.2 Microsoft Windows CLS can be run in Microsoft Windows 7 (32-bit), Windows Vista (32-bit), Windows XP or XP Mode, Windows 95, 98, Me, Windows 2000, Windows 2003 or Windows NT, as an MS-DOS application. The following instructions show how to add CLS icon(s) to your Windows desktop. A library of CLS program icons (cls.icl) is located in the CLS program path. Creating a CLS Shortcut on Your Desktop The following instructions assume that your hard drive is drive C and CLS is installed in a directory called Newcls. 1. Move the mouse cursor to a blank space on your desktop. Right-click and select New, and then Shortcut, from the menus that appear. 2. When asked for the location of the item, enter c:\newcls\cl.bat. 3. When asked for a name, enter CLS 6.1. 4. Click Finish to create the icon. 5. Now right-click on the new icon, and choose Properties from the menu. For Windows 2000/2003/XP/Vista/Windows 7: On the Options tab, select Full-Screen or Window (Full-Screen is not supported by Windows 7, Vista or XP Mode). On the Font tab: if you are using Lucida Console, change the Size to 18; for Raster Fonts change the Size to 10 x 18. On the Layout tab, change the Screen Buffer Size to 80 by 25. On the Shortcut tab, click the button marked Change Icon. At the File Name prompt, enter c:\newcls\cls.icl (assuming CLS is installed on drive C in the Newcls directory). Select a CLS icon, and click OK. Setting Up CLS Icons in Microsoft Windows 2-5

Installing CLS For Windows 95/98/Me: On the Program tab: If needed, enter a name for the shortcut. Make sure Close on Exit is checked. Click Change Icon. At the File Name prompt, enter c:\newcls\cls.icl (assuming CLS is installed on drive C in the Newcls directory). Select a CLS icon, and click OK. On the Screen tab, under Usage, select Full-Screen (the default) or Window. If you plan to run CLS in a window, set the Initial Size of the window to 25 lines. On the Miscellaneous tab, remove the check-mark from Allow Screen Saver. 6. Click OK to save the property changes for the CLS shortcut. 7. To start CLS, double-click the CLS icon on your desktop. Creating a CLS Documentation Shortcut on Your Desktop The following instructions assume that your hard drive is drive C and CLS is installed in a directory called Newcls. 1. Move the mouse cursor to a blank space on your desktop. Right-click and select New, and then Shortcut, from the menus that appear. 2. When asked for the location of the item, enter c:\newcls\docs. 3. When asked for a name, enter CLS Documentation. 4. Click Finish to create the icon. Installing Adobe Acrobat Reader version 9 (optional) CLS documentation is provided in the form of Adobe PDF (portable document format) files, which can be read by version 6 or later of Adobe Reader. If you already have the appropriate version of Reader, no further action is necessary. Adobe Reader version 9 is supplied free with CLS. If you would like to install version 9, use Windows Explorer to locate the CLSDOCS directory on the CLS installation CD. Double-click on the file Acrordr9.exe, and follow the on-screen instructions. Note: If the CLS installation process begins when you insert the CLS installation CD, simply press Escape to terminate it, and then close the installation window. 2-6 Setting Up CLS Icons in Microsoft Windows

Installing CLS Viewing CLS Documentation To view the CLS documentation, double-click the CLS Documentation icon on your desktop. Select the manual you would like to view and double-click its icon. The following CLS manuals have been provided: All versions of CLS are provided with the following manuals: GSGuide.pdf CLS Getting Started Guide RefGuide.pdf CLS Reference Guide WIManual.pdf CLS ~ Worksheet Interface TXManual.pdf CLS ~ Tax Package Interface All versions of CLS except CLS ~ General Ledger also have: PRGuide.pdf CLS Payroll Guide XMManual.pdf CLS ~ XML Filing for 940, 941 and 944 SMManual.pdf CLS ~ SUTA Magnetic Media Processing TMManual.pdf CLS ~ W-2/1099 Magnetic Media Processing UPManual.pdf CLS ~ Unemployment Plus Setting Up CLS Icons in Microsoft Windows 2-7

Installing CLS 2.3 Additional Installation Considerations Defining Valid Data Drives After installation, use the SI program, Menu Selection 1 (4), to define valid floppy and hard disk drives. If this procedure is not followed, CLS will only recognize drives A and C. This floppy and hard drive specification is used throughout CLS to validate drive letters. Enter the letters of the data drives CLS will be using. Enter the floppy disk drives first, a colon (:), then the list of hard drives. For example, AB:CDEF indicates A and B are floppy disk drives and C, D, E and F are hard drives. If you are using only hard drives, the colon must precede the drive letters (:CDEF); if only floppy drives are in use, the drive letters must be followed by a colon (AB:). Starting CLS from a Menu Program CLS is started by using the cl.bat file, which loads the Btrieve file manager (btrieve.exe) and then executes clstart.exe. If you are using a menu program to select CLS, the menu command line or batch file should start CLS using the command cl.bat. CLS Pop-Up Calculator The CLS Calculator is a terminate-and-stay-resident (TSR) program designed for use with CLS. Once installed, you may press Alt-C to activate the calculator, and Esc to exit it. The CLS calculator is basically an adding machine with a 300-line scrolling tape. You may add, subtract, multiply or divide numbers. Like an adding machine, the operator (+,-,*,/) is pressed after the number. With CLS and some other applications, you may transfer a value from the calculator to the application by pressing the T key. CLS Calculator Help Text The calculator was copied to your CLS directory during installation. The following instructions provide help in starting the CLS calculator in different environments. Use Windows Notepad to review and print the contents of the clscalc.doc file for instructions and features. Using the CLS Calculator in DOS To start the CLS calculator, enter clscalc at the CLS directory prompt: c:\newcls> clscalc 2-8 Additional Installation Considerations

Installing CLS Notes: If you are using a monochrome monitor, enter clscalc /m to start the calculator. If the Plus(+)/Minus(-) Mode in SI is set to recognize a trailing sign in ET, use clscalc /+ to start the calculator. Once the calculator is memory-resident, start CLS. You may then pop up the calculator over CLS by using the hot-key combination; the default hot-key is Alt-C. Starting the CLS Calculator Automatically Edit the batch file that starts CLS (usually cl.bat) to add the line clscalc.exe, as follows: echo Loading CLS butil -stop > nul clscalc.exe btrieve Using the CLS Calculator from a Network Server If CLS has been installed on a network server, all workstations must be configured to load the calculator in expanded (EMS) memory. Check your memory configuration in your config.sys file to ensure that the file contains the line emm386.exe or emm386.sys. CLS Calculator Memory Requirements When the calculator is memory-resident, it uses approximately 3.5K of memory. You may want to consider loading the calculator in upper memory. Remove the noems parameter from the device=emm386 line in your config.sys file. If the noems parameter is present, the calculator will be swapped to disk rather than using upper memory, which causes a delay in loading the calculator and interferes with the calculator operation in a network environment. Defining Multiple Printers CLS supports up to nine printers, and the printer selection prompt, Current printer: [HP Laser: Portrait ]? (Y,N), reflects the choices of defined printers. This prompt appears if more than one printer has been defined. Press Enter if the displayed printer is correct; if not, press N or use the arrow keys (, ) to scroll through the list of defined printers. You may also press F1 to select from a list of available printers. To define or change your printer setup, choose the SI program, Menu Selection 1 (6,1), to enter printer control codes. The printer descriptions may be changed to more accurately describe your printers. CLS automatically installs printer codes for HP LaserJet-compatible printers as Printer Numbers 3 (portrait mode) and 4 (landscape mode). Additional Installation Considerations 2-9

Installing CLS Laser Printer Control (Hewlett-Packard and HP- Compatibles) If you are using an HP LaserJet printer with a front-panel menu, use the printer's menu to set the font source to I and the font number to 00. CLS does not support non-hp-compatible laser printers, bubble-jet, desk-jet or ink-jet printers. Codes for HP LaserJet and compatible printers: Compressed-print code \27&k2S Normal-print code \27&k0S Laser Printer Control Codes You may enter the printer setup code to be sent to the printer before printing each report using the SI program, Menu Selection 1 (6,1), Printer Setup. Commands in the printer setup code are always executed, regardless of whether the report is printed in normal or compressed-print. For printer commands that apply only to reports printed in normal-print or to those printed in compressed-print, the appropriate print code (normal or compressed) should be modified. For example, to print all reports in italics, the command to use italics can be included in the printer setup code or in both the compressed and normal print codes. However, if only those reports printed in compressed-print are to be printed in italics, the command should only be included in the compressed-print code. The following commands are currently supported by CLS. Other commands can be found in your printer manual; they may or may not be compatible with CLS. For commands which include the numbers 0 and 1 or the letters O and l, the correct characters are noted under the Comments heading. Note: All commands are very case-sensitive and must be entered exactly as shown. Printer Function Command Comments Reset to 66 lines/page \27E\27&l7.6363c2e66F Letter - l (lower-case L) Pitch: 10 \27&k0S Number - 0 Pitch: 12 \27&k4S Pitch: 17 \27&k2S Landscape Mode \27E\27&l1O Letter - l (lower-case L) Number - 1 Letter - O Left Margin: 8 \27&a8L Left Margin: 10 \27&a10L Numbers - 10 Italics \27(s1S Number - 1 Paper Tray - Upper \27&l1H Letter - l (lower-case L) Number - 1 Paper Tray - Lower \27&l4H Letter - l (lower-case L) Printer commands with the same two characters immediately following the Esc character (\27) can be combined. The Esc character and the following two characters are included only once. All letters are changed to lower-case except the last character, which is capitalized, marking the end of the combined command string. For example, the combined command string which resets the printer and changes the lines per page to 66, executes each of the following commands: 2-10 Additional Installation Considerations

Installing CLS \27E \27&l7.6363C \27&l2E \27&l66F Since each of the last three commands uses the characters &l following the Esc character, they can be combined into the single command: \27&l7.6363c2e66F Adding the first command, \27E, to the beginning of the string creates the entire command string: \27E\27&l7.6363c2e66F Following are possible printer commands and the effect of each: 1) Portrait Mode - Uses the standard CLS print settings. 2) Landscape Mode - Prints all reports for the selected printer in landscape mode (11" x 8½"). Additional Installation Considerations 2-11

Installing CLS 3) Italics - Italicizes all reports using either of the two following combinations of printer commands. 4) Italics (compressed) - Italicizes only the reports printed in compressed print. 2-12 Additional Installation Considerations

Installing CLS 5) Left margin - Allows for binding reports in a folder by causing all reports usually printed in normal print to print in 12 pitch with a left margin of 8. 6) Upper Paper Tray - For printers with multiple paper trays, this command feeds the printer from the upper paper tray. 7) Lower Paper Tray - For printers with multiple paper trays, this command feeds the printer from the lower paper tray. Additional Installation Considerations 2-13

Installing CLS 2.4 Starting CLS After installing CLS, double-click the CLS icon on your Windows desktop or enter CL at the c:\newcls> prompt. The password screen appears, displaying the copyright notice, the CLS version and revision number. CLS Single-User Version - Allows access by only one user at a time. CLS Network Version - Designed for network environments (e.g., Windows 2003, Novell, etc.), the network version of CLS may be accessed by a maximum of 15 workstations at a time. Press Enter, and the Ledger Start-up (LS) screen appears: 2-14 Starting CLS

Installing CLS Today's Date The date displayed is your system date. Press up-arrow ( ) to change the date if needed, and enter a new one using the mmddyy format. Data Drive or Path To log onto the CLS sample ledger, enter the drive and path where CLS has been installed. Normally you will enter the drive or path where you keep your CLS data. The default is drive C. You can change the default drive and path using the SI program, Menu Selection 1 (4). Note: CLS does not handle the longer directory names supported by Windows. Directory names may be a maximum of eight characters with no spaces. *** Warning *** Single-User Version This message appears if you exited CLS abnormally, or you are using the single-user version of CLS in a network environment and another user is currently logged onto a ledger. Press Y to continue Ledger Start-up; in a network environment, processing on the ledger in use will be aborted. Press N to exit CLS. Ledger I.D. Enter JCC, the three-character I.D. for the Jamerson Collision Center sample ledger. File Generation CLS displays 013 as the current file generation. Press Enter to accept the default. Ledger Name Period Ending CLS automatically displays the ledger name, Jamerson Collision Center, and the period-end date, 2/28/10. Correct? (Y,N) If the information on the screen is correct, press Y or Enter, and the CLS Program Selection Menu (Main Menu) appears. Starting CLS 2-15

Installing CLS 2.5 Initializing CLS This section explains how to use the System Initialization (SI) program to define system-level parameters. From the CLS Main Menu, enter SI and the System Initialization menu appears: Select 1, Set System Parameters, and the following menu appears: 2-16 Initializing CLS

Installing CLS Setting Operator Preferences From the Set Systems Parameters menu, choose 1 to define operator preferences, and the following screen appears: The current value of each field is displayed. You may enter a new value for the field or press Enter to accept the current, or default, value. Ledger I.D. Length (3,4) Choose the length of CLS ledger I.D.s. A ledger I.D. may be any combination of 3 or 4 characters (letters or digits). Message Delay (0-9) Press 1-9 to display error messages for 1 to 9 seconds. Press 0 if you want CLS to display error messages and wait for a response. Print Time on Reports (Y,N) Press Y if you would like the run-time printed on financial statements, supplemental reports, the General Ledger, Payroll Journal and Transaction Register. Default Printer No. Select the number of the printer you want to be active when CLS is started. Press F1 to select from a pop-up list of available printers. Default Report Copies (D, 1-9) Select the number of copies to be used as the default when a report is printed. Press D if you would like CLS to default to the display mode. Default Comparative Stmts (Y,N) Default Period-Budget Stmts (Y,N) Press Y if you would like CLS to default to Comparative Financial Statements and Period-Budget Income Statements when new ledgers are created. Default Memorize Desc. (0-5) The value entered here is used as the default when a new ledger is created. Depending on your response to this prompt, CLS will memorize and autofill transaction descriptions during transaction entry (ET). If you choose to autofill accounts, the corresponding amounts entered in DM will also be autofilled. Press F1 to select the memorize mode from a pop-up list. Initializing CLS 2-17

Installing CLS Memorize Description Modes 0 Do not memorize or autofill descriptions 3 Memorize and autofill descriptions and accounts 1 Memorize descriptions, but do not autofill 4 Autofill descriptions, but do not memorize 2 Memorize and autofill descriptions 5 Autofill descriptions and accounts, but do not memorize Default Retention Cycle (1-99) The retention cycle set here is used as the default when a new ledger is created. You may change the retention cycle used during end of period processing for each ledger in program LI, Menu Selection 3 (1). Confirm Ledger Balance (Y,N) Press Y if you would like CLS to check the actual ledger balance before printing a Balance Sheet or an Income Statement, and before running End of Period Processing. AT Edit List Type (C,E) Press C if you would like a complete edit list when importing transactions in the AT program. Press E (the default) if you would like only the exceptions to be listed. Add/Decimal Mode (A,D) Select the decimal mode to be used throughout CLS. The decimal placement entered here is used as the default in program ET. Press F1 to select the add/decimal mode from a pop-up list. A D Add Mode: If no decimal point is entered in the Amount field, the A mode places the decimal two digits to the left of the last digit (e.g., 1234 = 12.34). Decimal Mode: If no decimal point is entered in the Amount field, the D mode places the decimal point after the last digit (e.g., 1234 = 1234.00). Plus (+)/Minus (-) Mode (0-2) Select the position of the plus and minus sign to be used when entering amounts in CLS. Press 0 if you will enter a sign (+ or -) before an amount. Press 1 if you will enter a sign (+ or -) after an amount in program ET; the sign will also act as the Enter key. Press 2 if you will enter a sign (+ or -) after an amount throughout CLS. Press F1 to select from a pop-up list of options. Default Source Code (0-19) Enter the source code to be used as the default for entering transactions in program ET. Source codes identify different types of transactions or journal entries. Default Entry Mode (1-6) Select a number to define the field where you want to begin after each transaction entry (ET). The entry mode selected here will be used as the default in program ET. Press F1 to select the entry mode from a pop-up list. Regardless of your selection, the cursor always returns to field one for a description entry on the first transaction or after entering a payroll check. Mode 1 Mode 2 Mode 3 Mode 4 Mode 5 Mode 6 Transaction Entry Modes Return to Description or Employee field after each entry. Return to Day field after each entry. Return to Ref. field after each entry. Return to Account field after each entry. Return to Amount field after each entry. Auto-prompting payroll mode. 2-18 Initializing CLS

Installing CLS Display Accounts in ET (0-2) Press 1 (the default) if you want account descriptions to appear during transaction entry. Press 2 to display account descriptions and department names. Confirm New Dept Accts (Y,N) Press Y if you would like CLS to confirm a new departmental account entered during transaction entry (ET) with Add dep t acct? (Y,N). Press N to create the departmental account without first being prompted. Accept or Escape? (A,Esc) Press A to accept your operator preferences. Press Esc to return to the Set Systems Parameters menu without saving any changes. Setting CLS Payroll Options For instructions on setting up system-level payroll options in SI 1 (3), please refer to Chapter 2, CLS Payroll Maintenance Programs, in the CLS Payroll Guide. Setting CLS Data Paths From the Set Systems Parameters menu, choose 4 to define the data paths CLS will use, and the following screen appears: The current value of each field is displayed. You may enter a new value for the field, or press Enter to accept the current value. Note: CLS does not handle the longer directory names supported by Windows. Directory names may be a maximum of eight characters with no spaces. Valid Data Drives (F:H) Enter the letters of the data drives CLS will be using. Enter the floppy disk drives first, separated from the hard drives by a colon (:). For example, AB:CDEF indicates A and B are floppy disk drives and C, D, E and F are hard drives. If you are using only hard drives, the colon must precede the drive letters (:CDEF). If you are using only floppy drives, the drive letters must be followed by a colon (AB:). Data Drive or Path Enter the drive or path where you will keep your ledger data. AT Import Drive or Path Enter the drive or path to be used when importing data using the Accounting Transfer (AT) Initializing CLS 2-19

Installing CLS program. BU Backup Drive or Path Enter the drive or path to be used when backing up CLS ledgers using the Ledger Backup/Restore (BU) program. EP Normal Backup Path EP Year-End Backup Path Enter the drive or path where you will store your backed up data files during normal and year-end processing. This is where the current ledger generation is transferred during end of period processing. We recommend storing backup generations on the same drive as the current generation. Note: If these fields are left blank, CLS will use the current data path as the backup path. Transmittal Letter Path Normally this field should be left blank. Enter the drive and path where CLS transmittal letters will be stored only if you are using the single-user version of CLS in a network environment and want to be able to share the transmittal letters with other CLS users on the network. Accept or Escape? (A,Esc) Press A to accept your data path information. Press Esc to return to the Set Systems Parameters menu without saving any changes. CLS data paths have been updated. CLS updates your data paths and returns to the Set Systems Parameters menu. Setting Up CLS Passwords From the SI menu, choose 2 to set up or revise passwords. The following screen appears: Note: Use the page-up, page-down and arrow keys (, ) to scroll through the program prompts. Password #1 Password #2 You may enter two passwords for CLS. Each may be up to 25 characters long. The current password is displayed. You can enter a new password or accept the current one. You must define the programs to be accessed by each password. Each time you log onto CLS, only those programs to which your password gives you access will appear on the menus. At each program prompt, select a value between zero and three. 2-20 Initializing CLS

Installing CLS 0 CLS System Passwords Neither password 1 nor password 2 has access to this program. (This option is not a valid response to the SI program prompt.) 1 Only password 1 has access to this program. 2 Only password 2 has access to this program. 3 Both passwords 1 and 2 have access to this program. Accept or Escape? (A,Esc) Press A if the information on the screen is correct, or press Esc to return to the SI menu. Password setup has been updated. CLS updates the system file and returns to the SI menu. You have completed the installation and basic setup procedures and may begin using CLS. The remaining selections on the SI menu are covered in the CLS Reference Guide. Initializing CLS 2-21

Installing CLS 2.6 CLS Technical Support The purchase of any new CLS product or update entitles you to 90-days of complimentary technical support for that product. After that time, Financial MicroSystems, Inc. offers several plans for CLS technical support. The following prices are subject to change without prior notification. CLS Priority Support - Entitles the user to one year of unlimited support calls and a toll-free phone number with an access code. CLS Network Version: $300 CLS ~ General Ledger : $85 CLS Single-User Version: $150 CLS ~ CheckWriter : $100 CLS ~ The Limited Edition : $100 On-Demand Support - Once your 90-day free support expires, you will be charged for each support call. CLS single-users, Limited Edition and General Ledger users will be charged $25; CLS network users will be charged $35. Before you call, please have the following information ready: CLS Customer/Serial Number - Customer number labels were provided with your software. You may also refer to your invoice. Technical support will not be provided without a valid customer number! CLS Version - Your customer number and the CLS version number appear on the first screen after you start CLS. Error Message/Description of the Problem - Please provide the exact error message you received or a brief description of the problem. Technical support is available weekdays from 8:30 AM to 5:00 PM EST. FMSI Telephone No. (770) 446-5709 FMSI Fax No. (770) 446-1802 Email techsupport@clientledgersystem.com Scheduling Appointments... If you have a technician scheduled and you will need CLS technical support, please make an appointment with us at least 24 hours in advance. In fairness to customers already waiting for support, we will not disrupt our call-back sequence to handle your call out of order if you do not have an appointment scheduled. 2-22 CLS Technical Support

Chapter Three 3 How to Use CLS Ledger Start-up... 3-2 CLS Menus... 3-4 Timesaving Keystrokes... 3-6 Lesson I: Entering Transactions... 3-8 Lesson II: Reviewing Unposted Transactions... 3-17 Lesson III: Posting Transactions... 3-19 Lesson IV: Editing Transactions... 3-21 Lesson V: Querying an Account... 3-24 Lesson VI: Querying Transactions... 3-26 Lesson VII: Printing Reports... 3-28 Lesson VIII: Batch Processing CLS Reports... 3-34

How to Use CLS 3.1 Ledger Start-up If you read the previous chapter on installing CLS, you already know how to start the program. Here, we will walk you through this step again using the JCC sample ledger. Double-click the CLS icon to start CLS. Note: If you are using MS-DOS, make sure you are at the operating system prompt in the directory where you keep your CLS programs. At the c:\newcls> prompt, enter CL. (These instructions assume your programs and data will be stored on drive C in the newcls directory.) The copyright notice and Enter Password prompt appear. Enter your password, or press Enter if you chose not to use one. The Ledger Start-up screen appears. Today's Date The date displayed is your system date. Press the up-arrow ( ) to change the date if needed, and enter a new one using the mmddyy format. Data Drive or Path To log onto the sample CLS ledger, enter the drive and path where CLS has been installed. Normally, you will enter the drive or path where you keep your CLS data. If this field is left blank, the default path defined in program SI, Menu Selection 1 (4) will be used. *** Warning *** Single-User Version This message appears only if you are using the single-user version of CLS in a network environment and another user is currently logged onto a ledger, or if you exited CLS abnormally. Press Y to continue Ledger Start-up; in a network environment, processing on the ledger in use will be aborted. Press N to exit CLS. Ledger I.D. Enter JCC, the I.D. for the Jamerson Collision Center sample ledger. 3-2 Ledger Startup

How to Use CLS File Generation CLS displays 013 as the current file generation. Each time you perform End of Period Processing (EP), you create a new generation of data files for a particular ledger. Press Enter to accept the default. Ledger Name Period Ending CLS automatically displays the ledger name, Jamerson Collision Center, and the period-end date, 2/28/10. Correct? (Y,N) Press Y, and the CLS Main Menu appears as shown on the next page. Ledger Startup 3-3

How to Use CLS 3.2 CLS Menus The CLS programs are contained in the Program Selection Menu (Main Menu) and two sub-menus. In Chapter 2, Installing CLS, we discussed accessing the CLS Main Menu. To make a selection from the Main Menu, enter the program's two-character I.D. at the Which program do you wish to select? prompt. Later in this chapter we will practice selecting and using several programs on this menu. The two sub-menus, accessible from the Main Menu, are the File Maintenance Menu (FM) and the Report Processing Menu (RP). Note: An additional program, Lock File Release (LR), is present in the network version of CLS. 3-4 CLS Menus

How to Use CLS Each time you make a selection from one of the CLS menus, an individual program menu with numbered choices appears as shown. From a program menu, simply type the number of your selection. A series of prompts guides you through each program. An asterisk (*) may appear beside a menu selection, indicating that this function is currently unavailable. An asterisk next to the Ledger I.D. at the top left corner of the screen indicates that there are unposted transactions present or pending trial balance entries. Notice that one of your choices on each program menu is Esc, which will return you to the Main Menu. When you press Esc to exit a program, you will see the prompt: Select Program or press ENTER for the Main Menu. Suppose you want to go directly to another program without returning to the Main Menu or one of the sub-menus. If you know the program's two-character I.D., you may enter it at this prompt. To select a program on the File Maintenance (FM) or Report Processing (RP) sub-menu, you may make your selection directly from the Main Menu, rather than going to the sub-menu to make your choice. CLS Menus 3-5

How to Use CLS 3.3 Timesaving Keystrokes Listed below are brief explanations of keystrokes that simplify movement in CLS programs. Arrows (, ), Tab or Shift-Tab Move you to the previous or next field, in sequence (except in program ET). Arrows (, ) Move the cursor within a field. Home Moves the cursor to the beginning of a field. End Moves the cursor to the end of a field. Insert Toggles the input mode between insert and typeover. Delete Deletes the character indicated by the cursor. Backspace Deletes the character to the left of the cursor. Alt-B Blanks all characters from the cursor position to the end of the field. Alt-R Restores a field to its original value if you have not left it yet. F1 Provides pop-up lists (e.g., chart of accounts, etc.). F10 Exits CLS from the main menu or either of the sub-menus. You may also press F10 or type End at the Select Program or press ENTER for the Main Menu prompt to exit CLS. Esc From within a screen, Esc takes you to the exit field. Press the up-arrow key to return to the field you were in before pressing Esc. 3-6 Timesaving Keystrokes

How to Use CLS Numeric Input Numbers are right-justified. When a field is selected, commas are removed, and the number is pulled to the left for editing. The add/decimal mode set in SI, Menu Selection 1 (1), is used throughout CLS. For all fields longer than one character: if your first keystroke is a cursor movement key (Home, End, or ), the field can be edited; otherwise, it will be over-written. Timesaving Keystrokes 3-7

How to Use CLS 3.4 Lesson I: Entering Transactions The Client Ledger System employs special keystrokes which speed the entry process and facilitate movement throughout the transaction entry screen. The table below lists these keystrokes. @. or 0 + - C Enter or Tab Esc F1 F2 Transaction Entry Keystrokes Backs up one field in the current line. Use this to correct errors in the current line. Also F6 or Shift- Tab. Enter in the Description or Employee field to repeat the Description, Day, and Reference fields and move the cursor to the Account field. Enter in the Day, Ref., or Account fields to increment the previous value of the field and move the cursor to the next field. Enter in the Day field to increment the value of the previous field. Press multiple times to reach the desired value. Enter in the Amount field to repeat the previous amount as a debit. Enter in the Day field to decrement the value of the previous field. Press multiple times to reach the desired value. Enter in the Amount field to repeat the previous amount as a credit. Enter in the Y/N field to cancel consecutive transactions for the current reference number. Enter in any field to repeat the previous entry. Enter in any field to display the transaction file totals for the current period and prepare to exit to the Source Code Table. CLS ignores any partially entered transactions and warns you if the totals are out of balance. Debits = (Total of transaction debits) Credits = (Total of transaction credits) Net = (Net of transaction entries) You will see the prompt: Is this acceptable? (Y,N). Press N to continue with the next transaction. If you are satisfied with the totals, press Y or Esc to return to the Source Code Table, then press Esc again to exit the ET program. Press F1 in the following fields: Description or Employee field: List employees and vendors for this ledger. Account field: List the Chart of Accounts for this ledger. Selects the Edit Mode. You may edit all unposted transactions regardless of source code. Move around the edit screen using the arrow keys (, ), Page-Up, Page-Down, Home and End keys. Choose the transaction to edit, then press Enter to select the field to correct. Press F6, @ or Shift- Tab to back up by field. Edited transactions will be revised after you enter Y to accept the transaction. If you change an amount, reference totals will be updated. Press Esc to cancel the change or to return to the transaction entry mode. In the Edit Mode, press F3 to block a group of transactions to delete or add back. You may also assign a new batch number, month, source code or year to any block of transactions. Continued on the next page 3-8 Entering Transactions

How to Use CLS F3 F4 F5 or? F6 or Shift-Tab F7 F8 F9 F10 Press F3 in the following fields: Description or Employee field: Edit the selected employee/vendor. Account field: Edit the selected account. In the Description or Employee field, this lists memorized transaction descriptions for this ledger. With the description list displayed, press the first letter of a description, and CLS will advance to that section of the list. Enter in any field to display the transaction file totals for the current period. Backs up one field in the current line. Use this to correct errors in the current line. Also @ and Shift- Tab. Press F7 to change the Source Code for subsequent transactions. Press F8 to change the Batch No for subsequent transactions. Press F9 to change the Year for subsequent transactions. Press F10 to display the list of short-cut keys available in ET. To enter transactions, use the Enter Transactions (ET) program. Enter ET from the CLS Main Menu, and the following menu appears: Note: This ET menu appears only if you responded Y to the Show ET Program Menu prompt in program LI, Menu Selection 3 (1). Otherwise, the CLS Source Code Table appears as shown below. Choose 1 to enter transactions, and the CLS Source Code Table appears. The CLS Source Code Table Use this screen to set parameters for the transactions you are going to enter. Source Code (0-19) Select the type of entries you will be making. The Source Code Table displays your choices. Press 2 to enter cash disbursements. The default source code is set in program SI, Menu Selection 1 (1). Entering Transactions 3-9

How to Use CLS Month/Year (mm/yy) Press Enter to accept the month and year displayed for the current period. Batch No. (0-99) You may tag transactions with an optional batch number and then prepare a Transaction Register for selected batches. Enter 10 as the batch number. Entry Mode (1-6) Select a number corresponding to the field where you want to begin after each entry. Press F1 to select the entry mode from a pop-up list. Regardless of your selection, the cursor always returns to the first field for a description entry for the first transaction or after entering a payroll check. Mode 1 Mode 2 Mode 3 Mode 4 Mode 5 Mode 6 Transaction Entry Modes Return to Description or Employee field after each entry. Return to Day field after each entry. Return to Ref. field after each entry. Return to Account field after each entry. Return to Amount field after each entry. Auto-prompting payroll mode. Since we want to make an entry in every field, press 1. The default entry mode is set in program SI, Menu Selection 1 (1). Add/Decimal Mode (A,D) Select the decimal mode. Press F1 to select the add/decimal mode from a pop-up list. A Add Mode: If no decimal point is entered in the Amount field, the A mode places the decimal two digits to the left of the last digit (e.g., 1234 = 12.34). D Decimal Mode: If no decimal point is entered in the Amount field, the D mode places the decimal point after the last digit (e.g., 1234 = 1234.00). For our practice session, press A to use the Add Mode. The default add/decimal mode is set in program SI, Menu Selection 1 (1). Plus (+)/Minus (-) (0-2) Select the position of the plus and minus sign to be used when entering amounts. Press 0 if you will enter a sign (+ or -) before an amount. Press 1 if you will enter a sign (+ or -) after an amount in the ET program; the sign will also act as the Enter key. Press 2 if you will enter a sign (+ or -) after an amount throughout CLS. Press F1 to select from a pop-up list of options. The default plus/minus mode is set in program SI, Menu Selection 1 (1). Shortcut: If the Source Code Table default settings (Source Code, Month/Year, Batch No., etc.) are correct, press Esc to move directly to the Continue? (Y,N) prompt. Continue? (Y,N) Y Assuming the transaction parameters are correct, press Enter to accept the default Y response. The transaction entry screen appears with the current transaction number displayed. 3-10 Entering Transactions

How to Use CLS Enter Transactions Although the following example uses an offsetting entry for each check entered, you will normally enter a series of checks with only a single offsetting credit entry to the cash account. Description or Employee Enter Jones Properties, the company to which you are paying rent. Note: Depending on your response to the Memorize Descriptions (0-5) prompt in program LI, Menu Selection 3 (1), CLS will memorize and autofill transaction descriptions. Day Enter 28 as the day of the month. Ref. Enter a reference number (the reference number may be alphanumeric). Enter check number 223 as the reference number. Account Enter 928, the account number for Rent. Amount Enter 50000 as the rent payment ($500.00). Remember, since we are in the Add mode, it is not necessary to enter a decimal point. Ref-Total CLS automatically totals all transactions belonging to reference number 223. Notice that the amount in this field is now 500.00. Press Enter in the last field to accept the transaction. A Y appears, indicating that you entered this transaction correctly. The cursor returns to the first field, allowing you to enter another transaction. Make an Offsetting Entry for the Rent Payment Description or Employee Day Ref. Press Enter at each of these fields to repeat the information from the previous transaction. Entering Transactions 3-11

How to Use CLS Note: You may also press 0 or the decimal point (.) at the Description or Employee field to move directly to the Account field. Account Enter 103, the account number for Trust Company Bank - Checking. Amount Enter a minus sign. The amount from the previous transaction appears as a credit. Notice that Ref-Total is now 0.00. Press Enter in the last field to accept this transaction. Add an Account On-the-Fly Description or Employee Enter Jones Business Leasing, the company from which you rent office space. Day Enter 28 as the day of the month. Ref. Enter a decimal point to increment the reference number by one. Account Enter 929, the new account number for Rent - Office Space. Since this is a new account number, CLS will ask if you want to Add postable account? (Y,N). Press Y, and the following screen appears: CLS displays a pop-up window for you to define the new account. Enter Rent - Office Space for Description 1. Press Esc to move to the Accept or Escape? (A,Esc) prompt. Press A to accept the new account and continue to the next field. Amount Enter 80000 as the rent payment for office space ($800.00). Remember, since we are in the Add mode, it is not necessary to enter a decimal point. Ref-Total CLS automatically totals all transactions belonging to reference number 224. Notice that the amount in this field is now 800.00. Press Enter in the last field to accept the Y default and this transaction. 3-12 Entering Transactions

How to Use CLS Make an Offsetting Entry for the Second Rent Payment Description or Employee Day Ref. Press Enter at each of these fields to repeat the information from the previous transaction. Account Enter 103, the account number for Trust Company Bank - Checking. Amount Enter a minus sign. The amount from the previous transaction appears as a credit. Notice that Ref- Total is now 0.00. Important: Enter 6 in the last field to change your entry mode to the auto-prompting payroll mode. (If you are using CLS ~ General Ledger, skip the payroll entries below and continue with Lesson II.) Enter a Payroll Transaction Description or Employee Enter 150, the employee number for Jane B. Bergin, whose check you will be entering. You may also press F1 to select from a pop-up list of employees for this ledger. Day Press Enter to accept the current value. Ref. Enter a decimal point to increment the reference number by one. Account Enter 805, the expense account for Wages-Shop (or 1, the payroll column number for gross pay). You may also press F1 to select from a pop-up Chart of Accounts for this ledger. Amount Enter 90000 as the gross pay amount. Press Enter in the last field to accept the transaction. You will be prompted to enter payroll deduction amounts as defined in the Payroll File Maintenance (PF) program. See Chapter 2 of the CLS Payroll Processing Guide, CLS File Maintenance Programs, for more information on the PF program. FICA Enter 6885, the FICA amount withheld from this check. Notice that a minus sign appears, which is picked up from the payroll journal. Press Enter in the last field to accept the transaction. Fed W/H Enter 16000, the amount of federal income tax withheld from this check. Press Enter to accept the transaction. Entering Transactions 3-13

How to Use CLS ST W/H Enter 4528, the amount of state income tax withheld from this check. Press Enter to accept the transaction. Gr Health Enter 700, the amount Jane pays for group health insurance per pay period. Press Enter to accept the transaction. Acc Insur Enter 400, the amount Jane pays for accident insurance per pay period. Press Enter to accept the transaction. Loans Rec Because Jane is not repaying a loan, press Enter. Make an Offsetting Entry for the Payroll Transaction Description or Employee Enter Net Pay as the description. Day Press Enter to accept the current value. Ref. Press Enter to repeat the reference number used for the check. Account Enter 103, the account for checking. Amount Enter -61487, the credit to cash. Press Enter to accept the transaction and return the cursor to the first field. Add an Employee On-the-Fly Description or Employee Enter 160, the number for the new employee, David R. Althouse. Press Y at the Add employee? (Y,N) prompt, and the following screen appears: 3-14 Entering Transactions

How to Use CLS CLS displays a pop-up window where you may enter information for the new employee. Define the new employee as follows: Name David R. Althouse Address Line 1 10 Main Street City Norcross State GA Zip Code 30071 Soc Sec/FEI No. 123-45-6789 Default Account 805 Hire Date 02/01/09 Press Esc to move to the Accept or Escape? (A,Esc) prompt. Press A to accept the new employee and continue to the next entry field. Day Press Enter to accept the current value. Ref. Enter a decimal point to increment the reference number by one. Account Enter 805, the expense account for Wages-Shop (or 1, the payroll column number for gross pay). Amount Enter 139910 ($1399.10) and press Enter. If you have installed the CLS calculator, you may activate it now (the default hot-key is Alt-C) and use it to calculate David Althouse s gross pay amount. Since the calculator works like an adding machine, enter 94150 ($941.50) and press the plus (+) key on the keypad. Enter 45760 ($457.60), and press Enter. CLS totals the amount as 1,399.10. Press T to transfer the total to the Amount field. Note: The CLS calculator must first be loaded according to the installation instructions in Chapter 2 of this manual. FICA Enter 10773, the FICA amount withheld from this check. Notice that a minus sign appears, which is picked up from the payroll journal. Press Enter to accept the transaction. Fed W/H Enter 25184, the amount of federal income tax withheld from this check. Press Enter to accept the transaction. ST W/H Enter 6996, the amount of state income tax withheld from this check. Press Enter to accept the transaction. Gr Health Press Enter to skip this deduction. Entering Transactions 3-15

How to Use CLS Acc Insur Press Enter to skip this deduction. Loans Rec Press Enter to skip this deduction. Make an Offsetting Entry for the Payroll Transaction Description or Employee Enter Net Pay as the description. Day Press Enter to accept the current value. Ref. Press Enter to repeat the check reference number. Account Enter 103, the account for checking. Amount Enter -969.57, the credit to cash. Press Enter to accept the transaction and return the cursor to the first field. Your entry screen should appear as shown below: You are now ready to end the transaction entry session. At Description or Employee, press Esc to end the session. The debit and credit totals appear and you are asked to accept or reject them. Press Y to accept the transaction totals and return to the Source Code Table. Continue to press Esc to exit the ET program. 3-16 Entering Transactions

How to Use CLS Lesson II: Reviewing Unposted Transactions 3.5 Before posting the transactions entered, review them using the Transaction Register (TR) program. Enter TR at the Select Program or press ENTER for the Main Menu prompt. The Transaction Register menu appears: Notice that an asterisk (*) appears next to the Ledger I.D. at the top left corner of the screen, indicating that there are unposted transactions present. (An asterisk will also appear if there are pending trial balance entries.) Choose Menu Selection 7, Current Transactions as Entered, and respond to the following prompts: Batch Number (0-99) Enter 10, the batch number assigned to the transactions you just entered. Posted, Unposted or All Transactions (P,U,A) Enter U to select unposted transactions. Continue? (Y,N) Press Y to continue. Reviewing Unposted Transactions 3-17

How to Use CLS (D)isplay, (F)ile, or number of copies to print (D,F,1-9) Press D to display the report. Your transactions will appear as shown below. Press Page-Down to see the rest of the report. In this case, you will see the payroll transactions for David R. Althouse and the transaction file totals. When you have finished viewing the transactions, press Esc to return to the Transaction Register menu. Press Esc to exit the TR program, and continue with the next lesson. 3-18 Reviewing Unposted Transactions

How to Use CLS Lesson III: Posting Transactions 3.6 Now you are ready to post the transactions using the Post Transactions (PT) program. Enter PT at the Select Program or press ENTER for the Main Menu prompt on the Transaction Register menu. The Post Transactions menu appears: Select 1, Post Transactions, and respond to the following prompt: Would you like a Posting Journal? (Y,N) If you chose to prepare a Posting Journal in LI, Menu Selection 3 (1), you will be prompted to select your printer. As the transactions are processed, you will see the relevant account numbers flash across the screen. A Posting Journal similar to the one on the next page prints. Posting Transactions 3-19

How to Use CLS Posting Journal 3-20 Posting Transactions

How to Use CLS Lesson IV: Editing Transactions 3.7 Once you have posted transactions, you may discover an error as you review the Posting Journal. Editing posted transactions is a three-fold process: Use the Post Transactions (PT) program to unpost transactions. Use the Edit Transactions (ET) program to edit transactions. Use the Post Transactions (PT) program to re-post the transactions. Unpost Transactions From the PT menu, select 2, Unpost Transactions, and respond to the following prompt: Would you like to continue? (Y,N) Press Y to continue. Unposting accounts Uposting employees Removing transaction links *** Complete *** CLS displays the progress as transactions are unposted and returns to the PT menu when complete. Press Esc to exit the PT program. Edit Transactions Enter ET at the Select Program or press ENTER for the Main Menu prompt on the Post Transactions menu. From the Enter Transactions menu, choose 1, Enter Transactions, and the Source Code Table appears. Press Esc to move directly to the Continue? (Y,N) prompt. Press Enter, and the entry screen appears. Press F2 to switch to the Edit Mode, and you will see the last transaction entered. Use the uparrow key to scroll to the first transaction you entered for Jones Properties. Your screen should appear as shown below: Editing Transactions 3-21

How to Use CLS Edit an Amount Edit the amount paid to Jones Business Leasing. Press the up-arrow (or down-arrow) to position the cursor at the first transaction entered for Jones Business Leasing, and press Enter to select the transaction. Press Enter to move to the Amount field. Enter 87500 ($875.00). Press Enter to accept the edited transaction. Notice that CLS automatically updates the reference total for this transaction. Press the down-arrow to position the cursor at the corresponding offset entry to Jones Business Leasing, and press Enter to select the transaction. Press Enter to move to the Amount field. Enter -87500 (-$875.00). Press Enter to accept the edited transaction. Edit an Employee Correct the transactions posted to Jane Bergin to reflect a name change. Press the down-arrow to move the cursor to the first transaction entered for Jane Bergin, and press Enter to select the transaction. Press F3. At the Enter employee to edit prompt, enter 150 (Jane s employee number). At the pop-up window which appears, replace Bergin with Jane s married name, Milford. Press Esc to move to the Accept or Escape? (A,Esc) prompt, and press A to accept the change. Continue to press Enter though the last entry field to accept the revised transaction. Notice that CLS automatically updates the last name for the entries being edited. Change a Batch Number Assign a new batch number to the transactions for David Althouse. Instead of updating the batch number for each individual transaction, CLS allows you to block a group of transactions and make changes. Press the down-arrow to position the cursor at the first transaction entered for David. Press F3, then press the down-arrow through the Net Pay transaction entered for David. Press B to change the Batch Number for this group of transactions. At the Enter new Batch Number prompt, enter 20 as the new batch number for these transactions. 3-22 Editing Transactions

How to Use CLS Continue to press Esc to exit the ET program. At the Is this acceptable? (Y,N) prompt press Y (or Esc) to accept the changes that you made. Re-Post Transactions Now that the transactions for this session are correct, use the Post Transactions (PT) program to re-post them. Enter PT at the Select Program or press ENTER for the Main Menu prompt on the Enter Transactions menu. Select 1, Post Transactions. Press Y if you would like a Posting Journal, or press N to post the transactions without printing a report. Editing Transactions 3-23

How to Use CLS 3.8 Lesson V: Querying an Account Use the Query Account Detail (QA) program to query one of the accounts to which we have posted transactions. Enter QA at the Select Program or press ENTER for the Main Menu prompt on the Post Transactions menu. The Query Account Detail menu appears: Select 1, Query Current Detail, and respond to the following prompts: Include Zero Amount Transactions Enter Y to include all transactions for the account, even those with a zero amount. New Page for Each Account If you request a list or a range of accounts, enter Y if you want each account to appear on separate page. Account Number Enter 805, the number of the payroll expense account we used. Note: You may press F1 to select a single account from the chart of accounts for this ledger. Press F2 to enter up to 10 accounts to be queried, or F3 to select a range of accounts. (D)isplay, or number of copies to print (D,1-9) Press D to display the account detail, and the following screen appears: 3-24 Querying an Account

How to Use CLS When you have finished viewing the account detail, press P to print the query, or press Esc to return to the Account Number prompt. Continue to press Esc to exit the QA program. Querying an Account 3-25

How to Use CLS 3.9 Lesson VI: Querying Transactions Use the Query Transaction Detail (QT) program to query the transactions based on specific criteria such as source code, batch number or payee name. You may also enter ranges for reference numbers, accounts, employees, departments and transaction amounts. You may query currentperiod or year-to-date transaction detail. Enter QT at the Select Program or press ENTER for the Main Menu prompt on the Query Accounts menu. The Query Transaction Detail menu appears: Select 1, Query Current detail, and the following screen appears: All of the query fields except Sort By are optional; they may be used to print or display a specific list of transactions matching the criteria selected. Following are several sample queries to help you become accustomed to using the Query Transaction Detail (QT) program. Query 1: Payee Name At the Payee prompt, enter Atlanta Gas Light or press F1 to select the payee from a pop-up list of memorized descriptions. Press Esc to move to the Continue? (Y,N) prompt. 3-26 Querying Transactions

How to Use CLS Continue? (Y,N) Press Y to accept the query criteria. (D)isplay, (F)ile or number of copies to print (D,1-9) Press D to display the transaction detail. Notice that only the transactions for Atlanta Gas Light appear. Query 2: Batch No. Clear the payee description. At the Batch No. prompt, enter 20. Press Esc and enter Y at the Continue? (Y,N) prompt. (D)isplay, (F)ile or number of copies to print (D,1-9) Press D to display the transaction detail. Notice that only the transactions with batch number 20 appear. Query 3: Reference Range Clear the Batch No. field. At the Reference prompt, enter 223 as the beginning reference number and enter 226 as the ending reference number. Press Esc and enter Y at the Continue? (Y,N) prompt. (D)isplay, (F)ile or number of copies to print (D,1-9) Press D to display the transaction detail. Notice that the transactions listed are those we entered during our transaction entry lessons. Query 4: Account Range Remove the reference numbers entered above. At the Account prompt, enter 929 as the beginning account and accept 929 as the ending account. Press Esc and enter Y at the Continue? (Y,N) prompt. (D)isplay, (F)ile or number of copies to print (D,1-9) Press D to display the transaction detail. Notice that only the transactions entered for Jones Business Leasing appear, which were assigned the new account number 929. Query 5: Transaction Amount Remove the account range entered above. At the Transaction Amount prompt, enter 614.87 as the beginning amount and accept 614.87 as the ending amount. Press Esc and enter Y at the Continue? (Y,N) prompt. (D)isplay, (F)ile or number of copies to print (D,1-9) Press D to display the transaction detail. Notice that the only transaction listed is the Net Pay amount for Jane B. Milford. Querying Transactions 3-27

How to Use CLS 3.10 Lesson VII: Printing Reports Now let's practice running several reports from the Report Processing (RP) menu. Enter RP at the Select Program or press ENTER for the Main Menu prompt on the Query Account Detail menu. The Report Processing menu appears: Balance Sheet Enter BS from the Report Processing Menu. The Balance Sheet menu appears: 3-28 Printing Reports

How to Use CLS Select 1, Standard Balance Sheet, and the following screen appears: The default responses for the Dollar Format, Print Account Numbers and Prepare Subschedule prompts are those entered in LI, Menu Selection 3 (1). The headings, date-line and footnotes are those set in LI, Menu Selections 5 and 6. Changes made when printing the Balance Sheet do not affect the default values. Period to Print, Previous Period Enter the fiscal period for which the balance sheet should be printed, and the previous period. Dollar Format (0-2) Press 0 to print amounts in dollars and cents. Print Account Numbers Press Y to print account numbers along the left side of the report. Prepare Subschedule Press 1 to print the Balance Sheet and subschedule. Press 2 to print only the Balance Sheet, or press 3 to print only the subschedule. Press F1 to select from a pop-up list of options. Print Run Date/Time Press Y to print the run date and time on the Balance Sheet. Print Page Numbers Starting Page Number If you wish to print page numbers on the report, press Y, and enter the number to be printed on the first page. Date-Line Press Enter to accept the default period-end date. Footnotes Press Enter at each of the footnote prompts to accept the default values for the footnote messages and positions. Shortcut: If the default settings for the Balance Sheet are correct, press Esc to move directly to the Continue? (Y,N) prompt. Continue (Y,N) Enter Y to continue. Printing Reports 3-29

How to Use CLS (D)isplay, (F)ile, or number of copies to print (D,F,1-9) Press 1 to print a single copy of the Balance Sheet. Current printer: [HP Laser: Portrait ]? (Y,N) Press Enter if your printer selection is correct; if not, press N to change your selection. Press F1 to select from a pop-up list of available printers. Press Enter again at the Ready? (Y,N) prompt to begin printing. Profit & Loss Statement Enter PL at the Select Program or press ENTER for the Main Menu prompt on the Balance Sheet menu. The Profit & Loss Statement menu appears: Select 1, Standard P&L, and the following screen appears: The default responses for the Dollar Format, Print Account Numbers, Statement of Income and RE and Prepare Subschedule prompts are those entered in LI, Menu Selection 3 (1). The headings, date-line and footnotes are those set in LI, Menu Selections 5 and 6. Changes made when printing the P&L do not affect the default values. Period to Print, Previous Period Enter the fiscal period for which the profit & loss statement should be printed, and the previous period. Dollar Format (0-2) Press 0 to print amounts in dollars and cents. 3-30 Printing Reports

How to Use CLS Print Account Numbers Press N to suppress printing of account numbers on the report. Statement of Income & RE Press Y to print the Statement of Income and Retained Earnings. Depending on your response in LI, Menu Selection 3 (1), this report will print at the end of the P&L or on a separate page. Prepare Subschedule Press 1 to print the P&L Statement and subschedule. Press 2 to print only the P&L Statement, or press 3 to print only the subschedule. Press F1 to select from a pop-up list of options. Print Run Date/Time Press Y to print the run date and time on the P&L Statement. Print Page Numbers Starting Page Number If you wish to print page numbers on the report, press Y, and enter the number to be printed on the first page. Date-Line Press Enter to accept the default period-end date. Footnotes Press Enter at each of the footnote prompts to accept the default values for the footnote messages and positions. Shortcut: If the default settings for the Balance Sheet are correct, press Esc to move directly to the Continue? (Y,N) prompt. Continue (Y,N) Enter Y to continue. (D)isplay, (F)ile, or number of copies to print (D,F,1-9) Press 1 to print a single copy of the Profit & Loss Statement. Current printer: [HP Laser: Portrait ]? (Y,N) Press Enter if your printer selection is correct; if not, press N to change your selection. Press F1 to select from a pop-up list of available printers. Press Enter again at the Ready? (Y,N) prompt to begin printing. Notice that CLS displays the page width and report width. CLS returns to the PL menu when the report has finished printing. Printing Reports 3-31

How to Use CLS Transaction Register To run the Transaction Register program, enter TR at the Select Program or press ENTER for the Main Menu prompt on the Profit & Loss Statement menu you just used. The Transaction Register menu appears: Select 1, Current Transactions by Source/Ref, and the following screen appears: Source Code (0-19, A-Z) Press Enter to print the transactions you entered earlier using the ET program. Batch Number (0-99) Enter 10, the batch number assigned to the transactions you entered earlier. (Press Enter to print transactions for all batches.) Starting Page Number Enter the number to be printed on the first page. (D)isplay, (F)ile, or number of copies to print (D,F,1-9) Press 1 to print a single copy of the Transaction Register. Current printer: [HP Laser: Portrait ]? (Y,N) Press Enter if your printer selection is correct; if not, press N to change your selection. Press F1 to select from a pop-up list of available printers. Press Enter again at the Ready? (Y,N) prompt to begin printing. CLS returns to the TR menu when the report has finished printing. 3-32 Printing Reports

How to Use CLS General Ledger Enter TB at the Select Program or press ENTER for the Main Menu prompt on the Transaction Register menu you just used. The Trial Balance menu appears: Select 1, General Ledger, and the following screen appears: The default responses for the Print Title and Total Accounts, and Print Zero Balance Accounts prompts are those entered in LI, Menu Selection 3 (1). You may make changes when printing the General Ledger without affecting the default values. Print Title and Total Accounts Press Y to print title and total accounts. Print Zero Balance Accounts Press N to suppress zero balance accounts. Starting Page Number Enter the number to be printed on the first page. Beginning Account Number Ending Account Number Press Enter at each of these fields to accept the default account range. (D)isplay, (F)ile, or number of copies to print (D,F,1-9) Press 1 to print a single copy of the General Ledger. Current printer: [HP Laser: Portrait ]? (Y,N) Press Enter if your printer selection is correct; if not, press N to change your selection. Press F1 to select from a pop-up list of available printers. Press Enter again at the Ready? (Y,N) prompt to begin printing. CLS returns to the TB menu when the report has finished printing. Press Esc to return to the CLS Report Processing menu. Printing Reports 3-33

How to Use CLS 3.11 Lesson VIII: Batch Processing CLS Reports Now that you are familiar with running individual reports, use the Batch Processing (BP) program to print a set of reports for the JCC sample ledger. Enter BP from the CLS Report Processing Menu. Select Report Set Number 1 and the Batch Processing menu appears: Use the following steps to set up and process a batch of reports. Batch Processing Setup Choose 1 from the BP menu, and the following menu appears: Select 1, Select Batch Report Copies, and the following screen appears: Ledger I.D. For our practice session, press Enter to accept the current ledger, JCC. 3-34 Batch Processing CLS Reports

How to Use CLS File Generation Press Enter to accept the current generation number, 013. Ledger Name Period Ending CLS automatically displays the current ledger's name and period-end date. Batch Printer CLS displays the printer currently assigned to this ledger for batch processing. An asterisk (*) indicates multiple printers have been selected for batch processing. If you wish, you may change the assigned printer for all reports here. Press F1 to select from a pop-up list of available printers. Printer Description CLS automatically displays the description of the selected printer. Number of Collated Sets (1-99) CLS can print up to 99 collated sets of the report selections. For now, enter 1 to print a single set of reports. Correct? (Y,N) Press Y to continue, and the screen below appears. Press N to return to the Ledger I.D. prompt. Use the arrow keys (, ) to scroll through the list of reports. For our practice session, we will accept the default value for each report. Press F1 to change the printer for a report. Press F2 to enable sequential page numbering for a report. Note: Sequential page numbers may not be assigned to reports generated by the Payroll Tax Worksheets (TW) program (e.g., Federal 941 Worksheet, Federal Unemployment (940) Worksheet, etc.). Shortcut: If the default settings for batch processing (e.g., printer, page numbering, etc.) are correct, press Esc to move directly to the Accept or Escape? (A,Esc) prompt. Accept or Escape? (A,Esc) Press A to continue, or press Esc to return to the Ledger I.D. prompt. Batch processing setup has been updated. CLS updates the batch processing setup and returns to the Ledger I.D. prompt. Continue to press Esc to return to the BP menu. Batch Processing CLS Reports 3-35

How to Use CLS Begin Batch Processing To print a batch of reports, first select 1 (Report Set 1) from the BP menu, then select 2, Begin Batch Processing. The following menu appears: Select 3, Process the Current Ledger, and respond to the following prompts: Print (S)tandard reports, (P)ayroll worksheets or (A)ll [S] CLS allows you to suppress standard reports or payroll worksheets without affecting your batch processing setup. For now, press A to print all reports. Print (R)eview or (F)inal copies of each selected report [F] Press F to print final copies of each report. (If multiple copies of reports have been selected in batch processing setup, the Review mode prints only one copy of each report.) Number of Collated Sets (1-99) CLS allows you to select the number of report sets to be printed without affecting your batch processing setup. Printer selection: (1) Use assigned batch printer(s), or (2) Choose a different printer: [1] Press 1 to print the reports using the batch printer(s) selected in BP, Menu Selection 1, or press 2 to select a different printer. You may choose to print ALL reports using the assigned batch printers, or ONLY those reports assigned to a particular Batch Printer: Enter the Batch Printer Number (1-4), or press ENTER for all reports: This prompt appears if you chose to print reports using the assigned batch printer(s). Select the number of the printer to use and print only those reports assigned to that printer, or press Enter to print all reports. Current printer: [HP Laser: Portrait ]? (Y,N) This prompt appears if you chose to print all reports using a printer other than the assigned batch printers. Press Enter if your printer selection is correct; if not, press N to change your selection. Press F1 to select from a pop-up list of available printers. Press Enter again at the Ready? (Y,N) prompt to begin printing. Each ledger, set number and report name is displayed as it is processed. When the reports have finished printing, CLS returns to the Main Menu. Now that you know the basics of the Client Ledger System and how several programs work, it is time to begin using CLS for your daily accounting activities. 3-36 Batch Processing CLS Reports

Chapter 4 Four Creating a CLS Ledger How to Create a Ledger... 4-2 Checklist... 4-12

Creating a CLS Ledger 4.1 How to Create a Ledger When you enter CL at the c:\newcls> prompt, and enter your password or press Enter to skip the password prompt, the Ledger Start-up screen appears: Today's Date The date displayed is your system date. Press the up-arrow ( ) to change the date if needed, and enter a new one using the mmddyy format. Data Drive or Path Enter the drive (or drive and path) on which you will keep the new ledger. If necessary, place data disk in drive 'A.' Ready? (Y,N) If the ledger data is on a floppy disk drive, you will be prompted to insert a disk. Press Y to continue. Ledger I.D. Enter the I.D. for the new ledger; the default ledger I.D. length is set in SI, Menu Selection 1 (1). This code may be alphanumeric, but avoid the use of other special symbols. Ledger 'TGP' not found in path: 'C:\NEWCLS.' Would you like to create it? (Y,N) CLS informs you that the selected ledger cannot be found in the designated path and asks if you want to create it. Press Y to create the ledger, and the Ledger Initialization (LI) menu appears. Note: If you are already working in CLS, simply enter LI at the Select Program or Press ENTER for the Main Menu prompt. 4-2 How to Create a CLS Ledger

Creating a CLS Ledger Create a New Set of Data Files From the Ledger Initialization (LI) program menu, select 1, Create a New Ledger, and the following screen appears. Enter the new Ledger I.D. and the Ledger Name (up to 50 characters per line). Select the Account Format: enter the length of the major portion of the account number and the department length. Decide if you want to prepare financial statements requiring comparative history, period-budget balances or both. Once a ledger has been created, you may change your selection of comparative reports using LI, Menu Selection 3 (1), but only within the available record size. Note: If you do not select comparative and period-budget reports when you create the ledger, you may not print a Prior-Year Comparative Income Statement or a Period-Budget Income Statement unless you expand the account master file using LI, Menu Selection 9 (7). Use SI, Menu Selection 1 (1) to change the defaults for these statements. Copy Chart of Accounts, etc. CLS lets you copy a Chart of Accounts, supplemental report formats, Table of Contents, Footnotes and Notepad, Memorized Descriptions, Leadsheets, Income Tax Summary, Financial Ratios and pro forma journal entries from one ledger to another. This feature can save you hours in setup time and requires only that you use standard Charts of Accounts, report formats and documents adaptable to different clients. Note: For the selections below, enter the drive and path where the ledger to be copied is stored, the master ledger I.D. and, if needed, a generation number. Press F1 to select the master ledger from a pop-up list. If you are using the sample data, the master ledger is JCC, generation 013. Chart of Accounts To copy a Chart of Accounts, use LI, Menu Selection 2 (1). An asterisk will appear beside this menu selection if you have added new accounts using program MF, Menu Selection 1, or if the How to Create a Ledger 4-3

Creating a CLS Ledger Chart of Accounts has already been copied. Press Y to copy master ledger setup information from the master ledger, and CLS will define the basic ledger information exactly like the master. Account ranges, source code descriptions, footnotes and most of the answers to the questions in LI, Menu Selection 3 (1), will be transferred to the new ledger. The new ledger's name, period-end dates, financial statement selections, and transmittal letter address will not be affected. Report Formats If you plan to prepare a Cash Flow Statement or Statement of Changes in Financial Position for this ledger, use LI, Menu Selection 2 (2), to copy pre-defined report formats from the sample data. You may also define a new format for one or both of these reports using program RF. A diamond ( ) will appear beside this menu selection if report formats already exist for this ledger; they may be overwritten. Enter the drive and path where the report master file resides, the master ledger I.D. and, if needed, a generation number. For more information on copying the supplemental report file, refer to the section on the LI program in Chapter 1 of the CLS Reference Guide, CLS Main Menu Programs. Table of Contents, Footnotes, Notepad and Client Bill Use LI, Menu Selection 2 (3), to copy the Table of Contents, Footnotes, Notepad or Client Bill from one ledger to another. A diamond ( ) will appear beside this menu selection if any of these documents already exists. They may be overwritten. These documents are copied individually. You may copy the Table of Contents from one ledger and the Footnotes from another ledger if you wish. Enter the drive and path where the master file resides, the master ledger I.D. and, if needed, a generation number. Memorized Descriptions Use LI, Menu Selection 2 (4), to copy memorized descriptions from one ledger to another. A diamond ( ) will appear beside this menu selection if you entered descriptions through the ET or DM programs, or if the file has been copied. Memorized descriptions may be overwritten. Enter the drive and path where the master file resides, the master ledger I.D. and, if needed, a generation number. Leadsheets Use LI, Menu Selection 2 (5), to copy leadsheet definitions from one ledger to another. A diamond ( ) will appear beside this menu selection if leadsheets have already been defined; they may be overwritten. Enter the drive and path where the master file resides, the master ledger I.D. and, if needed, a generation number. Income Tax Summary Use LI, Menu Selection 2 (6), to copy income tax summary information from one ledger to another. A diamond ( ) will appear beside this menu selection indicating that income tax summary information entered through the MF program will be overwritten. 4-4 How to Create a CLS Ledger

Creating a CLS Ledger Enter the drive and path where the master file resides, the master ledger I.D. and, if needed, a generation number. Note: Before the income tax summary can be copied, both the new ledger and the ledger to be copied must be set up to use the income tax summary in LI, Menu Selection 3 (1), and the account number format must be the same for both ledgers. You must also have defined or copied a chart of accounts for the new ledger. Financial Ratios Use LI, Menu Selection 2 (7), to copy financial ratios from one ledger to another. A diamond ( ) will appear beside this menu selection if you entered ratios through the RA program, or if the file has been copied. Financial ratios may be overwritten. Enter the drive and path where the master file resides, the master ledger I.D. and, if needed, a generation number. Pro Forma Journal Entries Use LI, Menu Selection 2 (8), to copy pro forma journal entries from one ledger to another. A diamond ( ) will appear beside this menu selection indicating that existing pro forma journal entries will be overwritten. Enter the drive and path where the master file resides, the master ledger I.D. and, if needed, a generation number. Revise Basic Ledger Information You now need to review the questions in LI, Menu Selections 3 through 8 and make changes where necessary. In Menu Selection 3, you will enter basic company information such as valid account ranges, current and retained earnings accounts, the number of fiscal periods per year, fiscal year-end date, and the current fiscal period and period-end date. You will also decide if you want to keep annual detail, access beginning employee balances, print account numbers on financial statements, or show deleted transactions on the Transaction Register or General Ledger. Use Menu Selection 4 to add or revise source code descriptions. Use Menu Selection 5 to change the headings and date-lines on financial statements and Menu Selection 6 to change the footnotes. Menu Selection 7 may be used to revise stored period-end dates. Menu Selection 8 may be used to select transmittal letter headings and texts and enter the appropriate transmittal letter address. Menu Selection 9 is used for file maintenance functions such as deleting a ledger or changing the account number format and account record size. How to Create a Ledger 4-5

Creating a CLS Ledger A report showing the LI setup detail is available in the Master File List (ML) program, Menu Selection 6. More information is available in Chapter 1 of the CLS Reference Guide, CLS Main Menu Programs, in the section covering the LI program. Modify or Create the New Chart of Accounts The next task is to revise the copied Chart of Accounts or create a new one using the Master File Maintenance (MF) program. If you are creating a Chart of Accounts, carefully study the CLS report formatting capabilities to take full advantage of its flexibility. (See CLS Chart of Accounts in Chapter 5.) You will need to decide which account numbers and descriptions to use, as well as which account types and options to use. After you have defined the Chart of Accounts, use the Master File List (ML) program, Menu Selection 1, to print it. Modify or Create the Cash Flow Statement or Stmt. of Changes in Financial Position (Supplemental Reports) Supplemental Report lines are defined using the Report File Maintenance (RF) program, or copied from another ledger using LI 2 (2). Each postable Balance Sheet account must be assigned to a line on the Cash Flow Statement and/or Statement of Changes in Financial Position using the Master File Maintenance (MF) program. You may assign more than one account to a single report line; the amounts from each account will accumulate in the appropriate line. If you want to define your own report formats, we recommend using the sample formats in the JCC ledger as a starting point. Log onto the JCC sample ledger (LS), and use the Supplemental Reports (SR) program to print a Cash Flow Statement and a Statement of Changes in Financial Position. Next, print the report formats using the Report File List (RL) program, then print a Chart of Accounts using the Master File List (ML) program, Menu Selection 1, showing line number assignments for each Balance Sheet account. 4-6 How to Create a CLS Ledger

Creating a CLS Ledger Chapter 5, CLS Concepts, contains additional information about the Cash Flow Statement and Statement of Changes in Financial Position. Enter Beginning Cash Flow Statement/Statement of Changes in Financial Position Balances If you plan to prepare a Cash Flow Statement or Statement of Changes in Financial Position, you must enter the balance in each Balance Sheet account at the end of the previous fiscal year. These balances should be entered as Last Year Ending Balances using MF, Menu Selection 1. Note: Last Year Ending Balances provide a starting point for the Cash Flow Statement and the Statement of Changes in Financial Position; they do not affect the general ledger. Enter Comparative History If you would like comparative financial statements, use MF, Menu Selection 3, to enter historical balances. You may enter comparative history by account or by fiscal period. Depending on your selections in program LI, Menu Selections 1 or 3 (1), an asterisk (*) may appear beside this selection indicating the routine is unavailable because you have not yet set up this ledger for comparative history. For more information, see Chapter 5, CLS Concepts. How to Create a Ledger 4-7

Creating a CLS Ledger Enter Budgets If you want budgeted financial statements, you may select annual or period-budget balances. Enter annual budgets for Income Statement accounts (or Job Budgets for Balance Sheet accounts) using MF, Menu Selection 1. Enter period budgets for Income Statement accounts using MF, Menu Selection 4. Depending on your selections in program LI, Menu Selections 1 or 3 (1), an asterisk (*) may appear beside this selection indicating the routine is unavailable because you have not yet set up this ledger for period budgets. For more information, see Chapter 5, CLS Concepts. Create Departments If you need departmentalized financial statements for this ledger, use the Department File Maintenance (DF) program to create the necessary departments and divisions. Once the departments and divisions have been created, you may use the Master File Maintenance (MF) program to create departmental accounts for all accounts, or you may copy another department s accounts. Use the Department File List (DL) program to list a ledger's departments. Next, select a departmental Balance Sheet and/or Profit & Loss Statement using program LI, Menu Selection 3 (1). If you answer Y to the Auto Create Accounts prompt in LI, Menu Selection 3 (1), you can automatically create departmental accounts during transaction entry (ET). Define Job Accounts CLS can prepare a job cost Balance Sheet or Income Statement. If you want job-costing for this client, you must define a work-in-progress sub-ledger when you set up the Chart of Accounts. You must first define the accounts comprising a standard job (a job template). Next, create the group accounts that define each job. You may then create all postable accounts for the new jobs using MF, Menu Selection 7, or you may create them during transaction entry if you answered Y to the Auto Create Accounts prompt in LI, Menu Selection 3 (1). For more detail, see Chapter 5, CLS Concepts and Chapter 2 of the CLS Reference Guide. 4-8 How to Create a CLS Ledger

Creating a CLS Ledger Define the Payroll Journal The CLS passive payroll system is included with the Client Ledger System and CLS ~ The Limited Edition programs. Your CLS Payroll Processing Guide provides more information about setting up the payroll journal. To use the CLS passive payroll system to accumulate earnings and deductions for a client's employees or record payments to their vendors, you must first define one or more payroll series using the Payroll File Maintenance (PF) program. Valid payroll series may be defined to begin anywhere within the range 100 to 9999. Use Menu Selection 1 to enter the employer's name, address, federal and state withholding I.D.s and unemployment tax I.D.s, and to select the payroll journal size (8 or 16 columns). Use Menu Selection 2 to enter contact information to be printed on certain payroll tax forms. Use Menu Selection 3 to define the payroll journal columns to be used for this payroll series. Payroll journal columns are used to accumulate Gross Pay and deductions from (or additions to) employee checks. Column 1 on the payroll journal is pre-defined as the gross pay column, but you must specify the ledger accounts to be used with this column. Column 1 is the only column that can be used to accumulate entries posted to more than one ledger account. For columns 2-8 (or 16 if you selected a 16 column payroll journal), enter a column type (see the tables in Chapters 1 and 3 of the CLS Payroll Processing Guide), a plus or minus sign, a heading (to appear on the payroll journal) and an account number. Use Menu Selection 4 (1) to enter the current year (CY) and next year (NY) tax rates and wage limits for each payroll series for which you want state unemployment taxes and/or SDI calculated. You also need to enter the expense and liability accounts to be used in FICA, unemployment and SDI tax transactions created by CLS. Depending on your response to the FICA/FUTA Source (1,2) prompt in program PF, Menu Selection 1, you may also enter FICA and Medicare rates and limits (and FUTA rates and limits) by payroll series. Use Menu Selection 4 (2) to enter global Social Security, Medicare and FUTA rates and These rates and limits need to be set only once per year. A Vendor Journal can be created in a similar fashion. For Series Type 1, 1099-MISC, Column 1 is pre-defined as non-employee compensation. How to Create a Ledger 4-9

Creating a CLS Ledger Enter Employees and Vendors After setting up one or more payroll series, enter employees and vendors using the Employee File Maintenance (EF) program. Assign numbers to employees and vendors which place them in the appropriate series. Valid employee and vendor numbers begin with the series number and end with 9999 or the last number before the next series, whichever comes first. For each employee or vendor, enter the name, address, social security number or federal tax I.D., the local taxing jurisdiction(s) (for employees), the default column 1 account for gross pay (for vendors, the default column), an optional sort key to use in sorting the employee list, and any employee or vendor options you wish to use. You may also enter the employee's or vendor's hire date and, if needed, the termination date. Although it is not mandatory, you may specify a default gross pay account for each employee to simplify the entry of payroll transactions in the ET program. (Simply enter 1 in the ET account field instead of the account number.) Note: The following screen displays balances for an employee belonging to a payroll series with an eight-column payroll journal. Your screen will be slightly different if you selected a 16- column payroll journal. In order to enter beginning payroll balances in the EF program, you must first answer Y to the Access Beginning Balances prompt in program LI, Menu Selection 3 (1). If you wish to enter beginning employee or vendor balances, you may accumulate balances for each quarter, or accumulate year-to-date amounts (through the end of the last calendar quarter) and quarter-to-date amounts (through the end of the last accounting period) for each employee and payroll journal column. These balances should be entered directly into the employee or vendor records using program EF, Menu Selection 2. Enter Beginning Ledger Balances Finally, you will need to enter beginning ledger balances. These balances should always be entered using the Enter Transactions (ET) program. If you are setting up the ledger in the middle of a fiscal year, enter year-to-date/ending balances for all accounts. If you are starting a new fiscal year, you will need only a beginning Balance Sheet. Use one of the following methods to enter beginning balances. Method 1 Use LI, Menu Selection 3 (1), to set the current period number to the one before the actual current period. Let s assume you have a calendar-year ledger and would like to begin processing with April. Set the current period to 3 (March) and the current calendar quarter to 1. Use ET to enter 4-10 How to Create a CLS Ledger

Creating a CLS Ledger year-to-date balances through March as Journal Entries (using Source Code 3 and a March 31 date). When you are satisfied that the beginning balances are correct, run End of Period Processing (EP) to move current balances to the year-to-date fields for each account. You may then begin entering transactions for period 4. Method 2 Use LI, Menu Selection 3 (1), to set the current period number to the period in which you will begin processing this ledger. If this is a calendar-year ledger and you wish to begin processing with April, set the current period to 4 and the current calendar quarter to 2. Next, use ET to enter year-to-date balances through March as Prior Period Adjustments (using Source Code 9 and a March 31 date), so current balances are not affected. Once the beginning balances have been established, you may begin entering transactions for period 4. Note: Source Code 9 entries are date-sensitive. If you are keeping history, period-end dates must be correct before CLS will accept a Source Code 9 transaction in the ET program. Make sure your period-end dates in program LI, Menu Selection 7, are correct for both this year and last year. How to Create a Ledger 4-11

Creating a CLS Ledger 4.2 Checklist Create a new set of data files (LI-1) Copy a Chart of Accounts, Report Format, Table of Contents, Footnotes and Notepad, Memorized Descriptions, Leadsheets, Income Tax Summary, Financial Ratios and Pro Forma Journal Entries (LI-2) Revise Basic Ledger Information (LI-3 through LI-8) Modify/create the new Chart of Accounts (MF-1, MF-2) Modify/enter Income Tax Summary Information (MF-1) Modify/create the new Cash Flow Statement and/or Statement of Changes in Financial Position (RF-1, RF-2) Modify/enter memorized descriptions (DM) Modify/create Financial Ratios (RA) If you plan to prepare a Cash Flow Statement and/or Statement of Changes in Financial Position, enter Last Year Ending Balances for Balance Sheet Accounts (MF-1) Enter Comparative History (MF-3) Enter Annual or Period-Budgets (MF-1, MF-4) Create Departments, if needed (DF-1) Define Departmental Accounts, if needed (MF-1, MF-6) Define Job Accounts, if needed (MF-1, MF-7) Define the Payroll Journal (PF-1 through PF-4) Enter Employees and Vendors (EF-1) Enter Beginning Employee and Vendor Balances (EF-2) Enter Beginning Ledger Balances (ET) 4-12 Checklist

Chapter Five 5 CLS Concepts Accounting Cycle... 5-2 CLS Chart of Accounts... 5-3 Departmentalizing a Ledger... 5-11 End of Period Processing... 5-14 Entering Budgets... 5-16 Entering History... 5-18 Financial Statements... 5-20 Income Tax Calculations... 5-36 Inventory Adjustments... 5-37 Job Costing... 5-38 Ledger Consolidation... 5-41 Reconciling a Bank Statement... 5-42 Transaction Processing... 5-44 Transmittal Letters... 5-47

CLS Concepts 5.1 Accounting Cycle Monthly work on a ledger involves the following steps: 1. Perform end of period or end of year processing (EP). 2. Perform file maintenance as necessary: add new accounts (MF), departments (DF), payroll series (PF), employees and/or vendors (EF). 3. Process transactions: Enter current period transactions, prior-period adjustments, repeating and/or reversing transactions (ET). Enter pro forma journal entries. Import transactions from other accounting programs (AT). Post transactions (PT). Create transactions for the employer's share of payroll taxes (CT). Create transactions for estimated income tax expense and/or cost of goods sold (CT). Create transactions for calculated journal entries (CT). Post transactions (PT). Unpost transactions if needed (PT), then edit (ET) and repost (PT). 4. Print financial statements and supporting reports: Batch Processing (BP), Balance Sheet (BS), Payroll Journal (PJ), Profit & Loss Statement (PL), Cash Flow Statement (SR), General Ledger (TB), Transaction Register (TR) 5. End of calendar quarter tax forms and worksheets: 940, 941 and 943 Worksheets (TW) 941 and 943 Forms (TW) State Unemployment Continuation Sheets (TW) 6. End of calendar year tax forms: W-2 Forms, W-3 Transmittal Forms (TF) 1099/1098 Forms, 1096 Transmittal Forms (TF) 940 and 944 Forms (TW) 5-2 Accounting Cycle

CLS Concepts CLS Chart of Accounts 5.2 Formatting of financial statements is controlled by title and total accounts within the Chart of Accounts, and by account options. Each ledger has its own Chart of Accounts, so special financial statement presentations can be created for different types of clients. Account numbers can be up to eight digits long. You may set the length of the major portion and the departmental portion of the account number. If an account number is entered with a length less than or equal to the length of the major portion, the departmental digits are automatically set to zero. To keep the presentation simple, the departmental digits are not printed if they are zero. The sample CLS Chart of Accounts, Jamerson Collision Center, appears to use three digit account numbers, but the account numbers are actually five digits long, including two departmental digits. Ledger Initialization Before creating a Chart of Accounts, you must define valid account ranges for the Balance Sheet and Income Statement. Use the LI program, Menu Selection 3 (1), to enter the lowest asset account, the lowest liability account and the highest equity account. Also, enter the lowest income account and the highest expense account. Be sure to allow for title accounts, and remember that these ranges must correspond to the actual Chart of Accounts. Use the LI program, Menu Selection 3 (3), to specify which account(s) are to be used to post Retained Earnings at the end of the fiscal year and which account(s) are to be used to present Current Earnings on the Balance Sheet. Up to 35 shareholders/partners can be defined, and allocation percentages can be entered with up to six decimal places (e.g., 33.333333%). The total income allocation must equal 100%. You may also define an optional range of accounts for prior year adjustments, contributed capital, capital withdrawn, declared dividends, cash dividends and other adjustments. Account ranges must be unique for each shareholder and must not overlap each other or the retained earnings or current earnings accounts. In program LI, Menu Selection 3 (1), you also decide whether to keep comparative history or to prepare financial statements using annual or period budgets. If the ledger was not set up for history or budgets, use LI, Menu Selection 9 (7), to expand the account master file. You may also choose to underline balances on the Balance Sheet or set the number of decimal places for P&L percent-of-sales and ratio columns. You can choose whether to print account numbers on financial statements, round amounts to whole dollars or prepare subsidiary schedules, and which footnotes you want to be standard on financial statements and their position on the page. For some format-related questions, the responses here will be used as the defaults when reports are batchprocessed, but they may be changed if a report is printed directly by the program that produces it. CLS Chart of Accounts 5-3

CLS Concepts Your Chart of Accounts is defined using the Master File Maintenance (MF) program. After you have created a Chart of Accounts, you may use program LI, Menu Selection 2 (1), to copy it to a new ledger where it may be modified or used as is. For each account, you will enter: An account number A description An account type Account options (as needed) For Balance Sheet accounts, you can also enter: Line numbers for the Cash Flow Statement, the Statement of Changes in Financial Position, or a user-defined report A last-year ending balance A job-cost budget Income tax form, schedule and line number (optional) For P&L accounts, you can also enter: Line numbers for the Cash Flow Statement, the Statement of Changes in Financial Position, or a user-defined report Annual or period budgets Income tax form, schedule and line number (optional) CLS uses account types, options, and spacing characters to control the format of financial statements. Spacing characters (^, 1-9) let you insert page-breaks and control vertical spacing within financial statements. Each account has two description lines, which are automatically linked for title accounts or stacked for postable accounts. If you need an account title longer than 50 characters, you may use the plus (+) sign to add a title account to the previous one of the same type. The plus sign should be placed on the first description line of the next account, preceding the title. Type 1 and 2 accounts can provide up to three title lines on the Balance Sheet and P&L. Type 3 accounts may be placed in the Chart of Accounts to change a subsidiary schedule title or begin a subschedule on a new page. Nested title accounts (type 4, 5 and 6 accounts) are used to group postable accounts on the financial statements. A type 4 account defines a set of accounts which can include one or more type 5 or type 6 accounts. A type 5 account defines a set of accounts which can include one or more type 6 accounts and/or postable accounts. A type 6 account defines a set of postable accounts. An optional type 9 account lets you print an account title with no corresponding balances. 5-4 CLS Chart of Accounts

CLS Concepts Optional type 14, 15 and 16 accounts let you override the total descriptions provided automatically by CLS. Group accounts are used to combine account balances and print the combined totals on a single line on the Balance Sheet or Income Statement while the detail appears on a subsidiary schedule. Only postable accounts can be defined as group accounts, but CLS treats the group account itself as nonpostable. The following tables list spacing characters, and account types and options. Spacing Control Characters Use one of the following control characters in the Spacing field for title accounts (types 1-6). ^ Begin a new page before printing this account. 1-9 Skip 1 to 9 lines before printing this account. Account Types 0 Postable Account 1 Balance Sheet Title 2 Income Statement Title 3 Sub-Schedule Title (e.g., Work in Progress) 4 Major Section Heading 5 Intermediate Section Heading 6 Minor Section Heading 9 Title Account (may be assigned bold, italics and underline). 14-16 Overrides type 4-6 total descriptions. Provides an Income Statement subtotal accumulated from the beginning of the 99 Income Statement to the Type 99 account. Options for Type 1 & 2 Accounts A Use title for financial statements only (not subschedules) B Print title in bold C Use title only for company-level reports D Use title only for department/division-level reports F Use title only at fiscal year end I Print title in italics P Use title only for non-fye periods S Use title only on the subschedule U Underline title V Disable departmental validation X Inactive title account Y Print title exactly as entered 1-3 Use only for this balance sheet menu selection 1-9 Use only for this income statement menu selection CLS Chart of Accounts 5-5

CLS Concepts A Other CLS Account Options Forces a postable, type 0 account description to print. Prints 0.00 for zero-balance accounts. B Print account description in bold. Account types 1-6, 9, 14-16 and 99. C D E & S Compress Peachtree Accounting for Windows or QuickBooks transactions during import. Indicates the end of a Departmentalized Income Statement. This option is normally applied to the Gross Margin account when preparing a gross profit analysis. If a D option is not used, CLS considers the entire Income Statement to be departmentalized. Use on an Income Statement, along with an S option (if needed), to define the range of accounts to include in the base (divisor) used for percent-of-sales calculations. An E option, normally placed on a non-postable account such as Cost of Goods Sold, stops the accumulation of the base. If an E option is not used, the base accumulation goes to the end of the Income Statement. The S option clears the accumulated base. If you do not use the S option, the base accumulation begins with the first account on the Income Statement. If used, the S option should also be placed on a non-postable account. Note: For percentage calculations to be based on total sales, assign option E to the Cost of Sales title account, and do not use option S. If you want the percentage calculation to be based on total expenses, assign an S to the Expenses title account and an E to the first non-postable account after the Expense section of the Income Statement. F Don t print percent of sales for this P&L account. G Don t clear this account s balances after printing subtotal. For account types 14, 15 and 16. H Exclude this account from net income when calculating income tax expense in CT. I Print account description in italics. For account types 1-6, 9, 14-16 and 99. Assign to the group account that indicates the beginning of the work-in-progress section of a Job Cost Balance J Sheet or Income Statement. The J option causes a grand total of all jobs to print at the end of the work-in-progress section of the Subsidiary Schedule. See options L and P. Assign to the group account that indicates the beginning of the work-in-progress section of a Job Cost Balance K Sheet or Income Statement. The K option causes the Subsidiary Schedule to list each job total instead of the job detail. Assign to the group account that indicates the beginning of the work-in-progress section of a Job Cost Balance Sheet or Income Statement. An L option affects only the Balance Sheet or Income Statement (not the Subsidiary L Schedule) and causes each individual job total to be listed on the Balance Sheet (or Income Statement). If the L option is not used, a single work-in-progress total appears on the Balance Sheet. See options J and P. M Assign an M option to any group account to suppress printing of that group on a sub-schedule. N Assign an N option to any group account to suppress printing of the group title on a sub-schedule. Reverses the sign of an account or group of accounts on financial statements. For example, use an O option with the Liabilities & Equity type 4 account to reverse the printed sign of all Liability & Capital accounts on the Balance O Sheet. Use an O option on the Income Statement to reverse the printed sign of all Revenue and Other Income accounts. Use an O option with all type 99 subtotal accounts. Assign to the group account specifying the start of the work-in-progress section of a Job Cost Balance Sheet or P Income Statement. The P option affects only the Subsidiary Schedule and causes each job to print on a separate page. See Options J and L. Q Assign a Q option to any group account to begin the sub-schedule on a new page. S Start accumulation of P&L percent base. T Forces a postable account to print as if it is a type 6 account. U Underline account description. For account types 1-6, 9, 14-16 and 99. V Indicates that this account is to be treated by CLS as a Beginning Inventory account on the P&L. W Indicates that this account is to be treated by CLS as an Ending Inventory account on the P&L. X Account is inactive. Transactions will not be accepted for inactive accounts. Y Print account description exactly as entered. Z Forces a postable, type 0 account to print. Will not print balances for zero-balance accounts. 1-9 Use percentage divisor 1-9. 5-6 CLS Chart of Accounts

CLS Concepts When a Balance Sheet is prepared, CLS automatically closes and totals an open type 4, 5 or 6 account group when another title account with the same or a lower type is reached. On the Balance Sheet, total accounts (types 14, 15 and 16) are needed only if you want to print a sub-total or override the standard CLS total description (e.g., type 16 is used on account 299 to provide the total description Net Fixed Assets; the automatic description would be Total Fixed Assets). A type 14, 15 or 16 total account closes open type 4, 5 or 6 account groups just as if another title account had been encountered. Use a G option to keep the group open after printing a sub-total. Changing Balance Sheet and Profit & Loss Statement Report Titles and Section Headings Use the Master File Maintenance (MF) program, Menu Selection 1, to edit Balance Sheet and P&L Statement report titles or section headings. Press F1 at the Account No. prompt. Use the pop-up list of accounts to select the title or section heading to change. At the Description 1 and Description 2 prompts, enter the report title or section heading as it should appear. Adding Bold, Italics and Underlines to Account Descriptions, Titles and Totals CLS allows you to add bold, italics and underline effects to your financial statements. This feature only applies when you are laser-printing your reports. You may set these effects globally or at the ledger level. To set these effects globally, use program SI, Menu Selection 1 (2), and choose bold, italics and underline for datelines, column headings, footnotes, page numbers and account types 1-6, 9, 14-16 and 99. At the ledger level, use program MF, Menu Selection 1, to select options (press F1 to display them) that will let you print a title or total account in bold, italics or underline. You may use program LI, Menu Selection 3 (1), to define characteristics for column headings, footnotes and page numbers. Using Enforced Cosmetics on Account Descriptions, Titles and Totals CLS allows you to force titles and account descriptions to be printed on financial statements, in upper case or proper case (where only the first letter of each word is capitalized), or as they were entered. This feature lets you easily create a consistent look for your financial statements. You may set up enforced cosmetics globally or at the ledger level. To set it up globally, use program SI, Menu Selection 1 (2,2), to choose the appropriate case for datelines, column headings, footnotes, and account types 1-6, 9, 14-16 and 99. At the ledger level, use program MF, Menu Selection 9, to select options (press F1 to display them) that let you print a title or total account in upper case, proper case, or as entered. A Y option applied to an account in MF 1 lets you print a specific account description as entered. If you are using proper case for certain titles or account descriptions, you may use program SI, Menu Selection 1 (2,3) to enter a list of key words that should always be printed in upper or lower case. CLS Chart of Accounts 5-7

CLS Concepts The Balance Sheet section of the JCC Chart of Accounts 5-8 CLS Chart of Accounts

CLS Concepts When a Profit and Loss Statement is prepared, CLS automatically closes and totals an open type 4, 5 or 6 account group when another title account with the same or lower type, or a type 99 account, is reached. Type 99 accounts are used to subtotal net income at various points on the P&L. Since type 99 subtotals represent amounts that should normally be credit balances, a type 99 account should always be accompanied by an O option to reverse the sign of the amounts printed on the P&L. Type 14, 15 and 16 total accounts are needed on a P&L only if you want to print a sub-total or override the standard CLS total descriptions. A type 14, 15 or 16 total account closes open type 4, 5 or 6 account groups just as if another title account had been encountered. Use a G option to keep the group open after printing a sub-total. The Profit and Loss section of the JCC Chart of Accounts (Page 1) CLS Chart of Accounts 5-9

CLS Concepts The Profit and Loss section of the JCC Chart of Accounts (Page 2) 5-10 CLS Chart of Accounts

CLS Concepts Departmentalizing a Ledger 5.3 CLS lets you define individual departments within a ledger so that financial statements can be prepared for each department and for the company as a whole. You may also create divisions, using a combination of letters and numbers, to summarize a group of departments. CLS also provides some pre-defined X, Y, and Z divisions, each with pre-defined account ranges. Although it is more common to prepare departmental Income Statements for a ledger, you may also departmentalize the Balance Sheet. If you are thinking of departmentalizing a company's Balance Sheet, you should consider using the Ledger Consolidation (LC) program instead. In some cases, using separate ledgers for different divisions and consolidating them to produce company-level financial statements may offer you better control over the individual ledgers than departmentalizing the Balance Sheet. You can also departmentalize just the sales and cost-of-sales section of an Income Statement to prepare a gross profit analysis by product or department. When you create a ledger, you may set the length of the major and departmental portion of the account number, up to eight digits total. If the length of an entered account number is less than or equal to the length of the major portion, the departmental digits will be set to zero. If necessary, you may change the account format later using LI, Menu Selection 9 (8). Setting up Departments A ledger can be departmentalized before or after creating a Chart of Accounts. You can also departmentalize an existing ledger, although prior-period balances and budgets may need to be redistributed before the departmental statements make sense. If you wish to departmentalize a ledger, follow this procedure: 1. Create a basic non-departmental Chart of Accounts using the MF program. The master accounts (department 0) must be present in a departmental Chart of Accounts, even though you may intend to allocate all transactions to departments. Each master account and its description is used to summarize individual departmental accounts into one line on company and divisionlevel statements. If a master account is deleted, each departmental account which would have been summarized will be listed separately on the statement. 2. If you plan to prepare a gross-profit analysis for each department and are departmentalizing only the sales and cost-of-sales section of the P&L, you should place a D option on the Gross Margin account. You may enter an optional Gross Profit Analysis title in program LI, Menu Selection 5 (6). 3. Use the LI program, Menu Selection 3 (1), and press D at the prompts for Balance Sheet Type (S,D,J) or Income Statement Type (S,D,J) to select a departmental report. Departmentalizing a Ledger 5-11

CLS Concepts 4. Before you leave the LI program, make sure you enter Y at the Auto Create Accounts prompt. This will let you create departmental accounts automatically in the Enter Transactions (ET) program, rather than having to define them separately using the MF program. Note: If you also respond Y to the Departmentalize all Trans prompt in LI, CLS will allow only departmentalized transactions to be entered in ET. 5. Use program DF, Menu Selection 1, to create your departments. Depending on the length of the departmental portion of the account number, department numbers can be between 0 and 9999. CLS provides a set of pre-defined division numbers, such as 1X, to summarize individual departments into divisions. These divisions and the departments summarized are shown below with two departmental digits. You may create your own divisions using a combination of letters and numbers, or you may modify the pre-defined divisions. X, Y and Z divisions with 2 departmental digits Div Depts Div Depts Div Depts 0X 0-9 0Y 0-19 0Z 0-29 1X 10-19 1Y 10-29 1Z 10-39 2X 20-29 2Y 20-39 2Z 20-49 3X 30-39 3Y 30-49 3Z 30-59 4X 40-49 4Y 40-59 4Z 40-69 5X 50-59 5Y 50-69 5Z 50-79 6X 60-69 6Y 60-79 6Z 60-89 7X 70-79 7Y 70-89 7Z 70-99 8X 80-89 8Y 80-99 8Z 80-99 9X 90-99 9Y 90-99 9Z 90-99 Notes: The X, Y and Z divisions summarize all accounts with departmental digits falling within the designated department ranges, even if the departments are not defined using program DF. If you are using non-departmental accounts (department 0) for overhead items, use the Division Departments prompt to change the department range to exclude department 0 if you are using divisions 0X, 0Y or 0Z. The following example uses two departmental digits to show how a small computer company might departmentalize its administrative, marketing, sales and R&D functions. Departmental setup for a small computer company 01 Corporate Management 11 Software Products 02 Accounting 12 Computer Products 03 Secretarial 1X Marketing 04 Accounts Payable 21 Software Products 05 Accounts Receivable 22 Computer Products 06 Shipping 2X Sales 07 Inventory Control 31 Research 08 Quality Control 32 New Product Development 09 Maintenance 3X Research and Development 0X Administration 5-12 Departmentalizing a Ledger

CLS Concepts 6. Print a Department File List using the DL program to make sure your departments are set up correctly. 7. You are now ready to enter departmental transactions using the ET program. Enter a valid account number in the Account field of the transaction entry screen and append the department number. For example, if you defined account 601 as Sales - Parts and created departments 01, 02 and 03 using the DF program, you can enter a transaction for account 60101 in ET, even though the account has not been set up using MF. Depending on your response to the Confirm New Dept Accts prompt in SI, Menu Selection 1 (1), you may see the prompt Add dep't account? (Y,N) when you enter account 60101 for the first time. If you press Y or Enter, account 60101 will be added to the Chart of Accounts using the description for account 601. If you press N, the account will be rejected. Note: You may use program MF, Menu Selection 6, to create a set of departmental accounts for all postable master accounts. You may also copy accounts from another department. 8. After transactions have been entered and posted, a departmental P&L can be printed. You will be asked if you want to print departmental statements. Press Y to prepare departmental or division-level statements or N to prepare company-level statements. The Departmentalized Balance Sheet When you create a departmental Balance Sheet, you must make sure each department is in balance. This requires that each department have a separate account for Retained Earnings and that all transactions are departmentalized (non-departmental overhead accounts are not allowed) and appropriate Due From and Due To accounts are set up in the Chart of Accounts and used. CLS will not warn you if your departmental ledgers are out of balance. It is possible for the entire company to be in balance, but individual departments to be out of balance. For example, if you paid a bill for one department using funds from another department, or used an account not differentiated by department (such as a common checking account), the ledger would be in balance at the company level, but the department(s) involved would be out of balance. As a result, even though the departmental Balance Sheet balances, Current Earnings on the departmental Balance Sheet will not agree with year-to-date Net Income on the departmental P&L. To maintain adequate control over a completely departmentalized ledger each period, you should print and review the departmental general ledgers (TB) and transaction registers (TR) and make the corrections necessary to keep all departments in balance. To prevent CLS from allowing nondepartmental entries, answer Y to the Departmentalize all Trans prompt in LI, Menu Selection 3 (1). The Query Account (QA) program, Menu Selection 6, Query Ledger Balance, will help you keep a ledger in balance by department. This routine can display ledger balances by department. When you print a departmentalized Balance Sheet, the current earnings amount for the department will appear at the account(s) you defined as the Current Earnings account(s) in LI, Menu Selection 3 (3). Do not set up separate Current Earnings accounts for each department. After end of year processing is complete (using EP), current year earnings or loss will be automatically posted to a single Retained Earnings account. To keep the departmental Balance Sheet in balance, you must make a journal entry in the first period of the new year to distribute Retained Earnings to the departmental Retained Earnings accounts. Departmentalizing a Ledger 5-13

CLS Concepts 5.4 End of Period Processing The first step in performing a month's (or period's) work is to close the previous period. The ledger must be in balance and all transactions must be posted before you can do so. The End of Period Processing (EP) program is used to close a period or year and prepare the ledger files for the next month's work. This program creates a new generation of data files for the ledger you are closing and brings balances forward from the previous generation. Year-to-date payroll balances are cleared at the end of a calendar year. Depending on your response to the Prompt for EP Balance Forward question in the LI program, Menu Selection 3 (1), CLS may also ask you at the end of a period or year if you want to carry balances forward. Repeating and reversing entries appear in the new period as unposted transactions. If you elected to keep annual detail in program LI, Menu Selection 3 (1), transactions from previous periods (but not the previous year) are also brought forward into the new generation. When closing a period, you must enter the period number, period-end date, and quarter-end date for the new period. CLS supplies the next period number and period-end dates based on the value entered at the EP Period Increment prompt in program LI, Menu Selection 3 (1). You can skip periods if you wish, but you may not skip the last period of a fiscal year. If you are closing the last period of a fiscal year, you must enter the next fiscal year-end date. If the end of period is also the end of the calendar year, CLS will ask if you would like to update payroll rates with next year rates. You may also choose to delete inactive employees and vendors. Notes: Ledgers with departmentalized Balance Sheets require a journal entry in the first period of the new year to distribute Retained Earnings to each department. During end of period processing, you are forced to retain a copy of the data files for the current period on the data disk or on a backup disk. The retention cycle set in the LI program, Menu Selection 3 (1), determines how many backup generations are kept on file. All of the information needed to prepare financial statements or an annual ledger at the end of a fiscal year is contained in a ledger's current generation. Files for prior generations should be kept on backup disks in case the current generation files are damaged or you need to re-open a previous accounting period. With this in mind, the retention cycle should be set to the lowest value with which you feel comfortable; three is recommended. Reclosing a Period If you need to make additional entries to a previous generation, select the appropriate generation 5-14 End of Period Processing

CLS Concepts number in Ledger Start-up (LS), make the entries and reclose the period using EP. In order to reclose a period, both the current generation and the next generation must be in the same data path. If the current generation is on the hard disk and the previous generation is on a floppy disk or in a separate backup path on the hard disk, then the previous generation must first be restored to the active data path on the hard disk. Log onto the current generation, then use program BU, Menu Selection 3, to restore the previous generation to the active data path. Finally, log onto the previous generation (LS), and re-run EP. During end of period processing, CLS will inform you that the new generation already exists and ask if you want to keep existing transactions. If you elect to keep existing transactions, CLS retains all transactions from the new period except repeating Source Code 6 or 16 transactions and reversed Source Code C transactions. If your ledger files for the current generation have been corrupted and cannot be recovered, reclose the previous generation without keeping existing transactions. CLS will then create a new set of files for the next generation, and you may re-enter the current period transactions. Shortcut: If the next generation files are damaged and you cannot reclose the period, you may want to try using the AT program to export the next period transactions to a temporary file using Menu Selection 4 (4). Next, reclose the current period without saving the existing transactions, and then import the exported transactions into the new generation using Menu Selection 3 (3,1). End of Period Processing 5-15

CLS Concepts 5.5 Entering Budgets Budget amounts may be entered for each P&L account as period budgets or as an annual budget, which is then de-annualized by CLS. Within a ledger, you may use only one method; you cannot use the annual budget method for one account and period budgets for another. Period Budgets If you plan to enter period budgets, make this selection when creating a ledger, or use program LI, Menu Selection 9 (7), to expand the account master file. Enter budget amounts for each period using the MF program, Menu Selection 4. Note: Enter budget figures for revenue accounts as credit balances. Annual Budgets If you prefer using annual budget figures which are de-annualized by CLS, you must answer N to the Period-Budget P&L prompt in the LI program, Menu Selection 3 (1). You can then enter the annual budget amounts using the MF program, Menu Selection 1. The annual budget will be divided by the number of fiscal periods per year (set in the LI program) to produce equal periodbudgets. 5-16 Entering Budgets

CLS Concepts Job-Cost Budgets You can also budget Balance Sheet job-cost accounts. Job-cost budget amounts are entered using the MF program, Menu Selection 1. If you wish to use this feature, make sure that in the LI program, Menu Selection 3 (1), you set the Balance Sheet Type to J, and answered Y to the BS Job Cost Budgets prompt. Entering Budgets 5-17

CLS Concepts 5.6 Entering History If you want to prepare comparative financial statements for a ledger, each account must contain the historical balances needed to produce the statement. If you selected a Comparative Balance Sheet or a Comparative P&L in program LI, Menu Selection 3 (1), these balances will be accumulated automatically by CLS. If you did not select comparative history for a ledger when it was created, use program LI, Menu Selection 9 (7), to expand the account master file. Note: When you begin keeping history for an existing ledger, history starts accumulating with the current period; prior periods are not affected. Entering History for Balance Sheet Accounts If you are entering history for balance sheet accounts at the beginning of a fiscal year, enter last year's period-end balances at each Period prompt, and enter the balance at the end of the prior year in the last year Beginning Balance field. The current year balances should be 0. If you are entering history for balance sheet accounts during a fiscal year, enter last year's periodend balances, then enter this year's period-end balances for each period of the current year up to, but not including, the current period. By Account: 5-18 Entering History

CLS Concepts By Fiscal Period: Entering History for Income Statement Accounts If you are entering history for income statement accounts at the beginning of a fiscal year, enter last-year's period activity at each last year Period prompt. If you are entering history for income statement accounts during a fiscal year, enter last year's period activity, and then enter this year's period activity for each period up to, but not including, the current period. By Account: By Fiscal Period: Entering History 5-19

CLS Concepts 5.7 Financial Statements CLS provides a great deal of reporting flexibility, even for standard financial statements. Preparing a Balance Sheet CLS prints standard and prior-year comparative Balance Sheets. You may also print a Statement of Changes in Equity or a trend analysis (3, 6 or 12 period). Subschedules, which summarize individual accounts (cash or payable accounts, for example) into single lines on the Balance Sheet, may also be printed. Balance Sheet subschedules normally show both current-period activity and ending balances, but the current-period column can be suppressed using the LI program, Menu Selection 3 (1). Other balance sheet options available in program LI, Menu Selection 3 (1) include the ability to underline Balance Sheet totals and subtotals, round amounts to whole dollars, show postable account numbers, and display credit balances in parentheses. Current-year net income can be distributed to a maximum of 35 Current Earnings accounts on the Balance Sheet, as defined in program LI, Menu Selection 3 (3). If you have fully departmentalized a ledger by answering D to the Balance Sheet Type and Income Statement Type prompts in program LI, Menu Selection 3 (1), you may print companylevel and departmental Balance Sheets. Because departmental Balance Sheets are forcebalanced, you need to be sure that individual departmental ledgers are in balance. Before distributing the financial statements, compare current earnings on departmental Balance Sheets with net income on each department's P&L. If you answered J to the Balance Sheet Type prompt in the LI program, Menu Selection 3 (1), you can prepare a job-cost Balance Sheet. Job-related accounts will be listed on subschedules. You can enter job budgets for these accounts using the MF program, Menu Selection 1. Setting up the Balance Sheet section of a Chart of Accounts is straight-forward: Type 1 accounts provide the Balance Sheet title (up to 50 characters). Several type 1 accounts can be linked to form a longer title. Type 1 accounts should be the first accounts in the Balance Sheet section of the Chart of Accounts. Type 4 accounts define the Assets and Liabilities and Equity titles. Again, several type 4 accounts can be linked to form a longer title. Placing an O option on the Liability and Equity account causes all balances in this section of the Balance Sheet to be printed with signs reversed (i.e., credit balances are printed as positive numbers). A caret (^) in the spacing field of a title account begins a new page. 5-20 Financial Statements

CLS Concepts Type 6 accounts are used to group Current Assets, Fixed Assets, Current Liabilities, Stockholders' Equity, etc. Although not shown here, a type 5 account can be used to group Current Liabilities and Long-term Liabilities under a single heading, Liabilities. If you choose this format, make sure you also change Stockholders' Equity to a type 5 account. Note that the example on the next page uses a single type 16 account to provide the NET FIXED ASSETS total description. Type 14 and 15 accounts are seldom used on the Balance Sheet. However, a type 16 account placed at the end of a type 6 group of accounts, a type 15 account placed at the end of a type 5 group, or a type 14 account placed at the end of a type 4 group will close the open group and use the total description provided. An A option has been used to force the Common Stock account to print even though it has a zero balance, providing an additional description line. Changing Balance Sheet Date-Lines and Column Headings Use program LI, Menu Selection 5 (1), Balance Sheet Period Descriptions and Date-Line, and Menu Selection 5 (9), Define Report-Specific Date-Lines, to revise Balance Sheet date-lines and column headings. Adding Bold, Italics and Underlines to Account Descriptions, Titles and Totals CLS allows you to add bold, italics and underline effects to your financial statements. This feature is only available when you are laser-printing your reports. You may set these effects globally or at the ledger level. To set them globally, use program SI Menu Selection 1 (2,1), to choose bold, italics and underline for datelines, column headings, footnotes, page numbers and account types 1-6, 9, 14-16 and 99. At the ledger level, use program MF, Menu Selection 1, to select options (press F1 to display them) that allow you to print a title or total account in bold, italics or underline. You may use program LI, Menu Selection 3 (1), to define characteristics for column headings, footnotes and page numbers. Using Enforced Cosmetics on Account Descriptions, Titles and Totals CLS allows you to force titles and account descriptions to be printed on financial statements, in upper case or proper case (where only the first letter of each word is capitalized), or as they were entered. This feature lets you easily create a consistent look for your financial statements. You may set up enforced cosmetics globally or at the ledger level. To set it up globally, use program SI, Menu Selection 1 (2,2), to choose the appropriate case for datelines, column headings, footnotes, and account types 1-6, 9, 14-16 and 99. At the ledger level, use program MF, Menu Selection 9, to select options (press F1 to display them) that let you print a title or total account in upper case, proper case, or as entered. A Y option applied to an account in MF 1 lets you print a specific account description as entered. If you are using proper case for certain titles or account descriptions, you may use program SI, Menu Selection 1 (2,3) to enter a list of key words that should always be printed in upper or lower case. Financial Statements 5-21

CLS Concepts JCC Balance Sheet 5-22 Financial Statements

CLS Concepts Preparing a Profit & Loss Statement CLS prints a standard Profit and Loss Statement, prior-year comparison, budget comparison, yearto-date only P&L and a year-to-date comparison. It may also be used to print a trend analysis (3, 6 or 12 period), a budget-only P&L (3, 6 or 12 period) or a special-format P&L (where you select the columns you want to appear on the P&L). Subschedules summarizing individual sales or expense accounts into single lines on the P&L can also be printed. P&L subschedules include all columns that appear on the P&L. The standard P&L format displays current-period activity (actual and as a percent of sales) and year-to-date activity (actual and as a percent of sales). Use program LI, Menu Selection 3 (1), to select the number of decimal places displayed in the percentage columns. Options available in program LI, Menu Selection 3 (1), include the ability to round amounts to whole dollars, show account numbers beside postable accounts, and/or display credit balances in parentheses. You can optionally print a Statement of Income and Retained Earnings on all P&L Statements, or just the standard P&L Statements. This report may be printed at the end of the P&L or on a separate page. If you departmentalized the P&L section of a ledger by answering D to the Income Statement Type prompt in program LI, Menu Selection 3 (1), you can print both company-level and department-level P&L Statements. Each department may have its own ratio-divisors. You can also departmentalize just the sales and cost of sales accounts (place a D option on the Gross Margin account) to prepare a gross profit analysis by product. If you answered J to the Income Statement Type prompt in program LI, Menu Selection 3 (1), you may prepare a job cost P&L, and job-related accounts will be listed on P&L subschedules. You may budget job-related accounts on the P&L in the same way you budget other P&L accounts. Note: You should consider placing job-related accounts on the Balance Sheet (instead of the P&L) since P&L accounts will be cleared at the end of the year and accumulated job costs will be lost. Special Format P&L You may select P&L columns from a list of 39 pre-defined column types. Column types are available for current-period and year-to-date activity for this year, last year and budget. Percent-ofsales, variance (from budget or last year), variance-percent and ratio column types are also provided. Ratio columns let you show current period or year-to-date activity divided by a ratiodivisor such as square-footage or number of patient-days. You may also define several special-format P&Ls which show history and budget figures by period; specific and relative (trailing) periods may be referenced. Codes that allow you to access budget and history amounts by period are listed below. Notes: You may also use numbers between one and nine as codes to insert spaces between columns on a special format P&L. For example, the format 99AB will produce a year-to-dateonly P&L with 18 additional spaces between the account description and the year-to-date columns. A colon (:) may be used to sum current period balances for a range of periods (e.g., @p1:3 sums periods 1-3, @p-2:0 sums the last three periods). Financial Statements 5-23

CLS Concepts Special Format P&L Column Codes Current Period Code Column Description Year-to-Date Code a THIS YEAR Current period A b THIS YEAR Current percent B c THIS YEAR Current ratio C d LAST YEAR Current period D e LAST YEAR Current variance E f LAST YEAR Current variance % F g LAST YEAR Current percent G h LAST YEAR Current ratio H i BUDGET Current period I j BUDGET Current variance J k BUDGET Current variance % K l BUDGET Current percent L m BUDGET Current ratio M n TOTAL BUDGET Current period N o TOTAL BUDGET Current variance O p TOTAL BUDGET Current variance % P q TOTAL BUDGET Current percent Q r TOTAL BUDGET Current ratio R Period-specific Special Format P&L Column Codes Current Period Codes Column Description Year-to-Date Codes @b1 @b12 Budget balances (periods 1 12) @B1 @B12 @b0 @b-12 Relative budget balances (periods 0, -1, -2-12) @B0 @B-12 @f1 @f12 Forecast (actual or budget) balances @F1 @F12 @l1 @l12 Last year balances (periods 1 12) @L1 @L12 @p1 @p12 Current year balances (periods 1 12) @P1 @P12 @p0 @p-12 Relative current year balances (periods 0, -1-12) @P0 @P-12 Format @l1 @l2 @l3 @l4 @l5 @l6 @l7 @l8 @l9 @l10 @l11 @l12 @L12 @b1 @b2 @b3 @b4 @b5 @b6 @b7 @b8 @b9 @b10 @b11 @b12 @B12 @p1 @p2 @p3 @p4 @p5 @p6 @p7 @p8 @p9 @p10 @p11 @p12 @P12 AINOP Special Format P&L Samples P&L Last-year P&L. Includes period balances for 12 periods last year. Budget P&L. Includes budget balances for 12 months. Period Balance P&L. Includes period balances for 12 months this year. Variance P&L. Includes year-to-date actual, year-todate budget, total budget and variances. In the following examples, pay special attention to: A type 2 account provides the P&L title(s). Several type 2 accounts can be linked to provide a longer title. Type 2 accounts should be the first accounts in the P&L section of the Chart of Accounts. Type 6 accounts are used to group postable accounts under headings such as Sales and Cost of Sales, Expenses, etc. Note the use of the O option on the Sales account to cause credit balances 5-24 Financial Statements

CLS Concepts in this section to print without a minus sign. Type 4 and 5 accounts do not appear in the examples, but may be used to create a more detailed P&L format. For example, type 5 accounts might be used for Revenue and Expenses if you want to have several sales and cost-of-sales account groupings. Type 14, 15 and 16 accounts are seldom used on the P&L. A type 16 account placed at the end of a type 6 group of accounts or a type 15 account placed at the end of a type 5 group will close the open group using the total description provided. Type 14 accounts can be used with a type 4 account to create subtotals within the expense section of the P&L; however, they do not close the open type 4 group. Type 99 accounts are used to create net-income subtotals on the P&L. Because these subtotals normally represent credit balances, an O option should be placed on all type 99 accounts. The range of accounts on which the percent-of-sales calculation is based is determined by the placement of the S and E options in the Chart of Accounts. Because this account range usually begins with the first account on the P&L, the S option is not normally needed. Changing P&L Statement Date-Lines and Column Headings Use program LI, Menu Selections 5 (2), 5 (3), 5 (4) and 5 (9) to revise Profit & Loss Statement datelines and column headings. Adding Bold, Italics and Underlines to Account Descriptions, Titles and Totals CLS allows you to add bold, italics and underline effects to your financial statements. This feature only applies when you are laser-printing your reports. You may set these effects globally or at the ledger level. To set these effects globally, use program SI, Menu Selection 1 (2,1), to choose bold, italics and underline for datelines, column headings, footnotes, page numbers and account types 1-6, 9, 14-16 and 99. At the ledger level, use program MF, Menu Selection 1, to select options (press F1 to display them) that let you print a title or total account in bold, italics or underline. You may use program LI, Menu Selection 3 (1), to define characteristics for column headings, footnotes and page numbers. Using Enforced Cosmetics on Financial Statements CLS allows you to force titles and account descriptions to be printed on financial statements, in upper case or proper case (where only the first letter of each word is capitalized), or as they were entered. This feature lets you easily create a consistent look for your financial statements. You may set up enforced cosmetics globally or at the ledger level. To set it up globally, use program SI, Menu Selection 1 (2,2), to choose the appropriate case for datelines, column headings, footnotes, and account types 1-6, 9, 14-16 and 99. At the ledger level, use program MF, Menu Selection 9, to select options (press F1 to display them) that let you print a title or total account in upper case, proper case, or as entered. A Y option applied to an account in MF 1 lets you print a specific account description as entered. If you are using proper case for certain titles or account descriptions, you may use program SI, Financial Statements 5-25

CLS Concepts Menu Selection 1 (2,3) to enter a list of key words that should always be printed in upper or lower case. JCC Profit and Loss Statement 5-26 Financial Statements

CLS Concepts Special Format P&L: Mixed Current Year/Last Year/Budget Format This example was created using the format: ababidd Financial Statements 5-27

CLS Concepts Special Format P&L: 6-Month Trailing P&L This example was created using the format: @p-5 @p-4 @p-3 @p-2 @p-1 @p0 5-28 Financial Statements

CLS Concepts Preparing Supplemental Reports The Cash Flow Statement and Statement of Changes in Financial Position are considered supplemental reports in CLS. The Cash Flow Statement conforms closely to the indirect method specified by FASB 95, analyzing changes in Balance Sheet accounts. The Statement of Changes examines sources and uses of working capital and then reconciles with changes in current asset and current liability accounts. Formats for the Cash Flow Statement and Statement of Changes may be copied from the JCC sample ledger to a new ledger, or you may create your own formats. Use the Report File Maintenance (RF) program to create a new report format. These formats are lineoriented; line types and options are similar to account types and options. A supplemental report is set up by line. You must enter a line number, description, line type and options. The following tables summarize spacing characters, line types and line options. Spacing Control Characters Use one of the following control characters in the Spacing field for title lines (types 4-6). ^ Begin a new page before printing this line. 1-9 Skip 1 to 9 lines before printing this line. Supplemental Report Line Types 0 Postable Line 1 Cash Flow Statement Title 2 Statement of Changes in Financial Position Title 4 Major Section Heading 5 Intermediate Section Heading 6 Minor Section Heading 9 Title Line (may be assigned bold, italics and underlines). 14-16 Overrides type 4-6 total descriptions. Provides a Cash Flow Statement subtotal accumulated from the beginning of the Cash Flow Statement to the 99 Type 99 line. Do not use with the Statement of Changes. Options for Type 1 & 2 Lines B Print title in bold C Use title only for company-level statement D Use title only for department/division-level statement F Use title only at fiscal year end I Print title in italics P Use title only for non-fye periods U Underline title X Inactive title account Y Print title exactly as entered 1 Use only for standard statement 2 Use only for comparative statement Financial Statements 5-29

CLS Concepts Options for Other CLS Line Types Prints a single underline under a postable line. = Prints a double underline under a postable line. A Forces a postable, type 0 line to print. Prints balances for zero-balance lines. B Prints line description in bold. Identifies the Beginning Cash line on the Cash Flow Statement. The line description is not sufficient to identify the C line as the cash line; the C option is required to do so. E Use ending balance. F Use on the Statement of Changes in Financial Position to switch the report to the Analysis of Change format. I Prints line description in italics. Identifies the Net Income line on the Cash Flow Statement and Statement of Changes in Financial Position. The line N description does not identify the net income line; the N option is required to do so. Reverses the sign of a line or group of lines on a supplemental report. This option is used with the type 1 line on the O Cash Flow Statement, causing all lines to print with signs reversed. It is also used with the Change In Working Capital, type 4 line on the Statement of Changes in Financial Position. Identifies the Beginning Retained Earnings line on a Statement of Retained Earnings. The line description does not R identify the line as a Retained Earnings line; the R option is required to do so. S Use beginning balance. Forces a type 0 (postable) line to print as if it were a type 6 group, but using only one line; title and total lines do not T print. This option causes a previous open type 6 Group to total. You may use this option on both the Cash Flow Statement and the Statement of Changes in Financial Position. U Underlines report line description. X Excludes this line from net income. Y Print line description as entered. Z Forces a postable, type 0 line to print. Will not print a balance for zero-balance lines. Once the Cash Flow Statement and/or Statement of Changes has been defined or copied from the sample ledger, print a copy of the report format using the Report File List (RL) program and a Chart of Accounts using the Master File List (ML) program to help you assign accounts to the appropriate report lines. Using program MF, Menu Selection 1, assign all postable Balance Sheet accounts to postable lines on the Cash Flow Statement and/or Statement of Changes. If you wish to separate sources and uses of cash or funds (for example, with a note payable you may want to separate loan proceeds from loan payments), modify the Chart of Accounts by setting up one postable account for proceeds and another for repayment, and then define a group account to include both postable accounts for proper Balance Sheet presentation. Next, use program MF, Menu Selection 1, to enter last year's ending balance for each Balance Sheet account. Remember, the Cash Flow Statement and Statement of Changes reflect changes in account balances since the beginning of the year. The reports will not be correct unless these beginning balances are correct. Adding Bold, Italics and Underlines to Titles and Totals CLS allows you to add bold, italics and underline effects to your financial statements. This feature only applies when you are laser-printing your reports. You may set these effects globally or at the ledger level. To set these effects globally, use program SI, Menu Selection 1 (2), to choose bold, italics and underline for datelines, column headings, footnotes, page numbers and line types 1-6, 9, 14-16 and 99. At the ledger level, use program RF, Menu Selection 1, to select options (press F1 to display them) 5-30 Financial Statements

CLS Concepts that will let you print a title or total line in bold, italics or underline. You may use program LI, Menu Selection 3 (1), to define characteristics for column headings, footnotes and page numbers. Using Enforced Cosmetics on Supplemental Reports CLS allows you to force titles and line descriptions to be printed in upper case or proper case on supplemental reports (where only the first letter of each word is capitalized), or as they were entered. You may set up enforced cosmetics globally or at the ledger level. To set it up globally, use program SI, Menu Selection 1 (2,2), to choose the appropriate case for datelines, column headings, footnotes, and account/line types 1-6, 9, 14-16 and 99. At the ledger level, use program MF, Menu Selection 9, to select options (press F1 to display them) that let you print a title or total account/line in upper case, proper case, or as entered. A Y option applied to a line in RF 1 lets you print a specific account description as entered. If you are using proper case for certain titles or line descriptions, you may use program SI, Menu Selection 1 (2,3) to enter a list of key words that should always be printed in upper or lower case. Financial Statements 5-31

CLS Concepts JCC Balance Sheet Accounts and the Cash Flow Statement Line Number Assignments Numbers in the CFS column of the Chart of Accounts correspond to line numbers on the Cash Flow Statement set-up. 5-32 Financial Statements

CLS Concepts JCC Cash Flow Statement format and Cash Flow Statement Financial Statements 5-33

CLS Concepts JCC Balance Sheet Accounts and the Statement of Changes in Financial Position Line Number Assignments Numbers in the CFP column of the Chart of Accounts correspond to the line numbers on the Statement of Changes set-up. 5-34 Financial Statements

CLS Concepts JCC Statement of Changes format and Statement of Changes in Financial Position Financial Statements 5-35

CLS Concepts 5.8 Income Tax Calculations You may define estimated income tax (federal, state and other) calculations using program LI, Menu Selection 3 (6). Choose 6 from the SI menu to define the income tax tables to be used by these calculations. To use the tax calculations, select program CT, Menu Selection 6, to create the estimated income tax transactions each period. When you define income tax calculations in program LI, Menu Selection 3 (6), you can either select from the available tax tables or enter a tax rate to be used. If you use a tax table, CLS will compare the FYE date of the ledger with the effective date of the tax table to select the appropriate table to use. For a particular tax, only one tax table can be used during the fiscal year. Two sets of transactions will be created for each tax calculation. The first set reverses the previous income tax expense (if any). The second records a new estimated income tax expense based on year-to-date net income. You may adjust the net income upon which a tax estimate is based, or adjust the tax itself. In the event of a loss, you can tell CLS to limit the amount of any calculated tax credit. You can also exclude non-deductible accounts such as Officers Life Insurance and Penalties (apply an H option to the account in program MF, Menu Selection 1). You can even exclude a portion of an account balance. The tax transactions will be created in reverse order so, for example, net income can be adjusted by the calculated state tax before the federal tax is computed. 5-36 Income Tax Calculations

CLS Concepts Inventory Adjustments 5.9 To show beginning and ending inventory on the P&L, you can make manual adjustments, or you can set up automatic inventory calculations in program LI, Menu Selection 3 (5), and create inventory transactions using program CT, Menu Selection 5. If you are using the automatic calculations or printing a comparative P&L, be sure to assign V and W options to the Beginning Inventory and Ending Inventory accounts, respectively, in program MF, Menu Selection 1, or comparative history for these accounts will not be reported correctly. To make the inventory adjustment manually: Account Description Debit Credit Entries 1 and 2 are always for the same amount. Don t make entry 1: a) for the first period of the year, or b) if you are using the V and W options. Entry 1 (source 9): To reverse last period ending inventory. 697 Ending Inventory 500.00 651 Beginning Inventory 500.00 Entry 2 (source 3): To record the new beginning inventory amount. 651 Beginning Inventory 500.00 106 Inventory 500.00 Entry 3 (source 3): To record the new ending inventory amount. 106 Inventory 674.00 697 Ending Inventory 674.00 Inventory Adjustments 5-37

CLS Concepts 5.10 Job Costing CLS contains basic job cost capabilities. You can use a Balance Sheet or Income Statement subschedule to accumulate expenses by cost-category within a job. Since you may also budget these cost categories, you can prepare a schedule for each job showing current activity, cumulative activity, budget and budget variance for each category. Creating a Job Cost Template If you choose to use the job cost feature, you will need to create a work-in-progress sub-ledger. Basically, you will specify the title of the sub-ledger using a type 3 account, then create an overall group account, titled Work-In-Progress, which will appear in the Current Asset section of the Balance Sheet. Next, create a template of postable accounts for individual jobs by creating a complete set of accounts for the first job. This will be the master job, consisting of a group account and, depending on the account number format, up to 9999 postable accounts. You will want to retain the master job accounts indefinitely, so do not make entries to them. After creating the master job, you only need to create a group account for each new job in program MF, Menu Selection 1. If you answer Y to the Auto Create Accounts prompt in program LI, Menu Selection 3 (1), you can then create postable accounts for a new job during transaction entry (ET). You may also copy the accounts in the template to a new job using program MF, Menu Selection 7. Job-Cost Setup To set up CLS for job costing, use the following procedure: 1. Use program LI, Menu Selection 3 (1), to specify a job cost Balance Sheet or Income Statement for this ledger. Enter J for job cost at the prompt for Balance Sheet Type (S,D,J) or Income Statement Type (S,D,J). 2. You will now see two more prompts: Master Job Account and Last Job Account. Decide on the range of accounts to reserve for the work-in-progress sub-ledger. For example, enter 201 as the master job account (the job to be used as a template) and 29999 as the Last Job Account. 3. You can budget Balance Sheet job cost accounts. If you wish to use this feature, make sure you answer Y to the BS Job Cost Budgets prompt. (Job cost budget amounts for each postable account are entered using program MF, Menu Selection 1.) The job cost section of the Balance Sheet subschedule will show current-period activity, cumulative activity, budget and variance. The format of other subschedules will not be affected. 4. Before leaving the LI program, make sure you select Y at the Auto Create Accounts prompt. 5-38 Job Costing

CLS Concepts 5. Use the MF program, Menu Selection 1, to set up the appropriate job accounts. In the following example, account 199 (a type 3 account) is used to define the title of the work-in-progress subledger. Account 200 (group-end account 29999) is used to summarize work-in-progress on the Balance Sheet. The job template is defined by account 201 (group-end account 20199) and the postable accounts in the range 20101 to 20199. Sample Job Cost Set-up Account Description Type Group-end Options 199 Work-in-Progress 3 200 Work-in-Progress 29999 JP 201 Job No. 1 20199 20101 Architects and Blueprints 20102 Appliances 20103 Brick and Stone - labor 20107 Call Backs 20108 Carpet and Vinyl 20109 Cabinets 20111 Ceramic Tile 20199 Closed to P&L 202 Job No. 2 20299 203 Job No. 3 20399 204 Job No. 4 20499 Note: Account options J, K, L and/or P are assigned to the summary group account (account 200). The J option causes a grand total for all jobs to appear on the subschedule. The K option causes only the job totals to be listed on the subschedule. The L option causes each job to be listed individually on the Balance Sheet, instead of being summarized into a single work-in-progress line. The P option causes each job to begin on a new page. 6. Job-cost transactions can now be entered using the ET program. To experiment with the autocreate function, enter transactions for jobs 202, 203 and 204. Print a Chart of Accounts and a Balance Sheet (including the subschedule) to make sure you have set up job costing correctly. Job Costing 5-39

CLS Concepts Sample Job Cost Subschedule BALANCE SHEET CONSTRUCTION IN PROGRESS AS OF 2/29/08 250 Job 50 Lot 198 CURRENT BALANCE BUDGET VARIANCE 25001 ARCHITECTS AND BLUEPRINTS 60.00 300.00 240.00 25002 APPLIANCES 2,481.34 3,200.00 718.66 25003 BRICK & STONE-LABOR 5,629.98 5,650.00 20.02 25007 CALL BACKS 82.00 500.00 418.00 25008 CARPET AND VINYL 3,300.00 3,300.00 25009 CABINETS 3,500.00 3,500.00 25011 CERAMIC TILE 771.50 800.00 28.50 25012 CLEANING 410.00 500.00 90.00 25015 COMMISSIONS-SALES 8,000.00 8,000.00 25016 CONCRETE-LABOR 756.31 800.00 43.69 25017 CONCRETE-MATERIALS 1,966.84 2,500.00 533.16 25018 DECK-LABOR 242.00 250.00 8.00 25019 DECK-MATERIALS 675.14 700.00 24.86 25022 DOORS & WINDOWS-EXTERIOR 3,135.88 2,700.00 435.88-25023 DOORS & WINDOWS-INTERIOR 47.12 47.12-25025 ELECTRICAL 3,816.00 4,000.00 184.00 25026 EXTERMINATOR 25.00 25.00 25027 FIREPLACE 851.56 860.00 8.44 25028 FRAMING-LABOR 4,308.00 4,350.00 42.00 25029 FRAMING-MATERIALS 7,433.59 7,500.00 66.41 25032 GRADING, HAULING, CLEAN. 2,937.50 3000.00 62.50 25033 GUTTERS 436.50 550.00 113.50 25034 HARDWARE 262.67 500.00 237.33 25037 HEATING AND AIR COND. 3,088.00 3,700.00 612.00 25039 INSULATION 686.00 1,200.00 514.00 25040 INSURANCE 524.00 500.00 24.00-25041 INTEREST-CONSTRUC. LOAN 4,612.89 6,000.00 1,387.11 25044 LANDSCAPING 50.00 1,480.00 1,200.00 280.00-25045 LABOR AND MATERIALS NOC 1,944.00 1,500.00 444.00-25046 LEGAL FEES 185.00 200.00 15.00 25048 LOT COST 32,500.00 32,500.00 25049 MARBLE VAN. AND TUBS 3,672.50 3,700.00 27.50 25053 MIRRORS AND GLASS 788.69 800.00 11.31 25054 OVERHEAD DOORS 410.00 410.00 25055 PAINT-LABOR 4,513.50 4,550.00 36.50 25058 PLUMBING 4,500.00 4,500.00 25059 POURED WALLS 4,494.90 4,500.00 5.10 25060 ROOFING-LABOR 680.00 650.00 30.00-25061 ROOFING-MATERIALS 554.48 800.00 245.52 25066 SEWER, LINE, & TAP 1,676.25 1,700.00 23.75 25067 SHEETROCK 4,907.36 5,000.00 92.64 25070 SIDING-LABOR 2,190.00 2,200.00 10.00 25071 SIDING-MATERIALS 1,131.38 1,200.00 68.62 25075 STEEL 353.21 500.00 146.79 25077 TAXES, PERMITS, AND LIC. 133.00 200.00 67.00 25079 TRIM-LABOR 1,848.00 1,900.00 52.00 25080 TRIM-MATERIALS 4,154.30 4,000.00 154.30-25083 UTILITIES 34.16 700.65 500.00 200.65-25084 WALLPAPER-LABOR 665.00 700.00 35.00 SEE ATTACHED COMPILATION REPORT Closing a Job to the P&L If you have accumulated expenses in job cost Balance Sheet accounts and want to close the job to the Income Statement, you may do so with a pair of entries; it is not necessary to zero-out all accounts for the job. First, use the Query Account Detail (QA) program, Menu Selection 3, to determine total expenses for the job. Then, use the ET program to make an entry for this amount, crediting the Closed to P&L job account on the Balance Sheet and debiting the job-related expense account on the Income Statement. Deleting a Closed Job You can use program MF, Menu Selection 7 (2), to delete job-related accounts after a job is complete. It is not necessary to zero-out all of a job's accounts before deleting the job. However, the job must net zero (it must be completely closed to the P&L). There can be no current-period transactions for the job, including transactions marked as deleted. If you are keeping annual detail, the job cannot be deleted until the next fiscal year begins. Note: You may use an M option on the group account which defines a closed job to suppress printing of that job on a subschedule. 5-40 Job Costing

CLS Concepts Ledger Consolidation 5.11 CLS lets you consolidate up to 25 ledgers in order to prepare financial statements for a consolidated entity such as a holding company. The process produces a new ledger with combined account balances which can be used to prepare a consolidated Balance Sheet, P&L, Cash Flow Statement and/or Statement of Changes in Financial Position. History and budget balances are also consolidated, so comparative financial statements may be prepared. Combined departmental statements can also be printed if the departments are defined in the consolidation ledger. The consolidated ledger will not contain employee or vendor balances or transaction detail. You should not make entries to the consolidated ledger, and there is no need to run End of Period Processing on it. The first step in the consolidation process is to define a consolidation (target) ledger to contain the merged balances. Since the consolidation process is destructive, CLS requires that the ledger I.D. used for the target ledger begin with an ampersand (&) to prevent the target ledger I.D. from being confused with a real one. During consolidation, CLS erases and rebuilds the Chart of Accounts of the target ledger. All account records for the first ledger are copied to the target ledger, even if they are inactive. As subsequent ledgers are processed, CLS checks each account to see if it is already on file and copies the account record to the target ledger or combines the account balances. If account descriptions differ between companies, the consolidated Chart of Accounts will show the description of the first account processed. Notes: If the consolidated ledger is to be meaningful, all the active ledgers involved must have compatible Charts of Accounts, the same number of fiscal periods and the same fiscal yearend date. Current and retained earnings accounts must be defined for the consolidation ledger using program LI, Menu Selection 3 (3). These accounts will be used for the consolidated Balance Sheet. If you will prepare a Statement of Income and Retained Earnings for the consolidated ledger, you must also define the account ranges for contributions and with- drawals, dividends declared and adjustments using program LI, Menu Selection 3 (3). If some account descriptions in the consolidated ledger differ from those in the ledger being consolidated, create an empty ledger containing only the accounts with the different descriptions, and select it as the first ledger to be consolidated. If eliminating entries need to be made to remove the effect of intercompany transactions, create a ledger containing only the eliminating entries. If you also created a ledger to override account descriptions, enter the elimination ledger as the second one to be consolidated; otherwise, it should be the first. (You may, of course, combine these two functions in a single ledger.) Ledger Consolidation 5-41

CLS Concepts 5.12 Reconciling a Bank Statement The Bank Reconciliation program allows you to reconcile up to thirty bank accounts per ledger. When you import transactions from the ledger to the outstanding check file, all bank accounts are updated at one time. Checks, cash receipts and journal entries are entered into CLS before reconciling bank statements. The Bank Reconciliation program reads the entered transactions to create a list of outstanding and cleared checks. To reconcile monthly bank statements when processing a ledger on a quarterly or annual basis, follow these steps: 1. Enter the transactions for the first month of the quarter or year. 2. Reconcile the bank statement through the bank statement date. 3. Print the bank reconciliation and any supporting reports. 4. Enter the transactions for the next month of the quarter or year. Add these transactions to the outstanding check/deposit file using the BR program, Menu Selection 1, Update Outstanding Check File. Note: Do not change the default values when importing new transactions. 5. Use Menu Selection 2, Enter Bank Activity and Clear Checks, to enter the beginning balance and total deposits and charges from the new month's bank statement. 6. Complete the reconciliation process, then print the bank reconciliation and any supporting reports you need. Continue this process until all the bank statements for the quarter or year have been reconciled. Note: If you are processing quarterly or annually, it is extremely important that you print each monthly bank reconciliation as soon as you finish it; you will not be able to retrieve a previous reconciliation once you have started the next one. Do not remove cleared items using Menu Selection 7, Delete Cleared Transactions. If you do, the items you remove will be imported again with the next month's transactions. If you are processing monthly, but the bank statement cuts off in mid-month, follow these steps: 1. Enter transactions through the bank statement date. 5-42 Reconciling a Bank Statement

CLS Concepts 2. Reconcile the bank statement. 3. Print the bank reconciliation and supporting reports. 4. Enter the remaining transactions for the month. 5. Import the new transactions into the Bank Reconciliation outstanding check/deposit file (by running Menu Selection 1) before you run end of period processing. You can also use the Bank Reconciliation program to reconcile a bank account when you only input journal entries into CLS for that bank account and do not enter the check detail. Simply enter the outstanding checks and deposits-in-transit for this bank account using Menu Selection 3, Enter Other Reconciling Items. The Bank Reconciliation program does not make correcting entries or adjustments to a ledger. If mistakes are found in the process of reconciling the bank statement, correct the ledger transactions by using the Post Transactions (PT) program to unpost the transactions, the Enter Transactions (ET) program edit function to make corrections, and program PT again to re-post. Now, rerun program BR, Menu Selection 1, Update Outstanding Check File. Reconciling a Bank Statement 5-43

CLS Concepts 5.13 Transaction Processing Transactions are entered into CLS using the Enter Transactions (ET) program and they may be edited or deleted during entry. When transactions are first entered, they are considered unposted; they are not yet reflected in account or employee balances and will not appear on the general ledger. Unposted transactions may be examined using the edit-mode in the ET program, or they can be displayed or printed using the Transaction Register (TR) program, Menu Selection 5. CLS maintains control totals as transactions are entered. These totals must be in balance and all transactions posted before financial statements can be printed. The control totals are displayed when you leave the transaction entry screen in ET. If unposted transactions exist (or there are pending trial balance entries), an asterisk (*) appears beside the Ledger I.D. on all menus. The Post Transactions (PT) program is used to complete the process of updating account and employee/vendor balances and linking transactions to account and employee/vendor records. A Posting Journal will be printed if you answered Y to the Prepare Posting Journal prompt in program LI, Menu Selection 3 (1). Transactions can be unposted using the Post Transactions program (PT), Menu Selection 2, and then edited or deleted. The Delete Transactions (DT) program may be used to delete transactions after they have been posted. You may show deleted transactions on the General Ledger or Transaction Register or suppress them using program LI, Menu Selection 3 (1). CLS transactions are identified by source code, date, accounting period, description, reference number (which can be alphanumeric) and an employee or vendor number for payroll transactions. Transactions may include an optional batch number in order to print a transaction register by batch number. All of this information is validated during entry to minimize errors. Source codes identify types of entries. Transaction Registers are separated by source code so you can use this feature to prepare a Cash Receipts Journal, a Cash Disbursements Journal, etc. There are 20 available numeric source codes and ten others (A, B, C, F, H, I, P, Q, R, T) used internally by CLS. You may use program LI, Menu Selection 4, to change the descriptions for Source Codes 0-19. Repeating Transactions Source Codes 6 and 16 are reserved for journal entries you want repeated automatically each fiscal period, such as depreciation and amortization. These transactions will appear as unposted transactions in each new fiscal period. While unposted, these transactions may be edited or deleted using the edit-mode in the ET program. After posting, they may be deleted by using the Delete Transactions (DT) program. Note: If periods are skipped during End of Period Processing (EP), additional sets of Source 5-44 Transaction Processing

CLS Concepts Code 6 or 16 transactions, labeled Source Code B, will be produced for the skipped periods. CLS uses special codes to indicate the number of times a transaction should be repeated and the total amount to be repeated. (The first entry counts.) If the Reference field is blank or does not contain one of the special symbols described below, a Source Code 6 or 16 transaction will repeat until it is deleted. Pound Sign (#) Used in the Reference field of the transaction entry (ET) screen, the pound sign followed by a number indicates the number of times a transaction will be repeated (e.g., #10). Dollar Sign ($) Used in the Reference field of the transaction entry (ET) screen, the dollar sign followed by an amount indicates the total amount to be allocated (e.g., $4500). The transaction amount entered in the Amount field will be automatically deducted from the amount in the Reference field at the end of the period. If the amount entered in the Reference field does not contain a decimal point (e.g., $1000), CLS will consider only the whole dollar portion of the amount when making the deduction. If the amount entered in the Reference field contains a decimal point (e.g., $1000.56), CLS will include the cents in the deduction. The entry will repeat until the amount remaining is less than the transaction amount. Note: If you want to use Source Code 6 or 16 for another purpose or do not want these transactions to automatically repeat, answer N to the Repeat Source Code 6 and Use Source Code 16 as Repeating Workpaper Entry prompts in program LI, Menu Selection 4. Reversing Transactions Source Codes 7 and 17 are reserved for accrual entries such as accounts payable or accounts receivable, where you would like to automatically generate a set of reversing entries in the next fiscal period. CLS assigns Source C to the reversed Source Code 7 transactions. Source Code C transactions will appear as unposted transactions in the new fiscal period. While unposted, they may be edited or deleted using the edit-mode in the ET program. After posting, they may be deleted by using the Delete Transactions (DT) program. Note: If you want to use Source Code 7 or 17 for another purpose or do not want them to reverse in the following period, answer N to the Reverse Source Code 7 and Use Source Code 17 as Reversing Workpaper Entry prompts in program LI, Menu Selection 4. Prior Period Adjustments Source Code 9 is reserved for Prior Period Adjustments. You can change the description associated with this source code, but you cannot change its function. These entries are datesensitive; account history will be affected. Make sure your period-end dates are correct in program LI, Menu Selection 7, for both this year and last year. Other Transaction Types Transactions are also created when you use the Accounting Transfer (AT) program to transfer Transaction Processing 5-45

CLS Concepts transactions from accounting software such as Peachtree, TCS, Quicken or Bass Payroll, or use the Computed Transactions (CT) program to generate transactions for the employer's share of payroll taxes. 5-46 Transaction Processing

CLS Concepts Transmittal Letters 5.14 The Transmittal Letter (TL) program lets you print customized transmittal letters for your clients (see the examples on the following pages). You may also print additional documents such as the Table of Contents, Cover Page(s), Footnotes, Notepad or Client Bill. All documents use embedded key words where CLS will insert specific ledger information, such as the client name, period-end date and number of elapsed periods, when the letter is printed. CLS uses a text editor (program SI, Menu Selection 4) for entering document text. Press F2 to view text editor functions and cursor movement keys. Press F1 to view key words for use in the documents. Transmittal Letter Assignments You may assign a cover page, and up to four letter headings and texts to each client using program LI, Menu Selection 8 (2,1) or program TL, Menu Selection 9 (1). This information will be used if a transmittal letter is printed using the Batch Processing (BP) program. Additional letters for a single client may be printed directly from the TL program. Transmittal Letter Address The letter address is entered in program LI, Menu Selection 8 (2,2) or program TL, Menu Selection 9 (2). Transmittal Letter Heading Use program SI, Menu Selection 3, to create the letter heading; you may create up to 99. You may print summary and detail listings of headings on file using program TL, Menu Selection 7 (1), and Menu Selection 8 (1). Cover Page Use program SI, Menu Selection 4 (1), to create up to twenty-seven cover pages which are available to all ledgers. Transmittal Letter Text Use program SI, Menu Selection 4 (2), to create letter texts; you may create up to 999 letters which are available to all ledgers. You may print summary and detail listings of texts using program TL, Menu Selection 7 (2), and Menu Selection 8 (2). Table of Contents Use program SI, Menu Selection 4 (3), to create a Table of Contents for the current ledger. You may display or print the Table of Contents for the current ledger using program TL, Menu Selection 8 (3). Transmittal Letters 5-47

CLS Concepts Footnotes Use program SI, Menu Selection 4 (4), to enter several pages of footnotes for the current ledger. You may display or print the Footnotes for the current ledger using program TL, Menu Selection 8 (3). Notepad Use program SI, Menu Selection 4 (5), to enter additional notes for the current ledger. You may display or print the Notepad for the current ledger using program TL, Menu Selection 8 (3). Client Bill Use program SI, Menu Selection 4 (6), to create a Client Bill for the current ledger. You may display or print the Client Bill for the current ledger using program TL, Menu Selection 8 (3). Transmittal Letter Heading 5-48 Transmittal Letters

CLS Concepts JCC Letter Text and Transmittal Letter Transmittal Letters 5-49

CLS Concepts This page is left blank intentionally. 5-50 Transmittal Letters

Appendix Appendixes A: Installing Novell Netware 3.xx or 4.xx Btrieve... A-1 B: Additional Update Installation Steps... B-1 C: Converting Older CLS Ledgers to Version 6.1... C-1 D: Limited Edition Documentation Changes... D-1 E: General Ledger Documentation Changes... E-1 F: Glossary... F-1 G: CLS Program Codes... G-1 H: CLS Ledger Limits... H-1 I: CLS End-User License Agreement... I-1

Appendixes aaa Installing Netware Btrieve If you installed the network version of CLS for the first time in a Novell Netware environment, follow the instructions below to use the Novell-provided copy of Btrieve. Do not follow these steps for Netware 5.xx or later. NetWare (Versions 3.xx, 4.xx Only) To determine if Btrieve is installed on the file server, enter the following at the f:\ prompt: f:\> dir \system\btrieve.nlm f:\> dir \public\brequest.exe Both files must be present on the file server. If either command returns the message File not found, Btrieve needs to be installed using the following instructions. Complete Btrieve installation instructions may be found in your NetWare documentation. The following instructions summarize the procedures in the Btrieve installation manual. 1. From a workstation, log in to the file server, and change to the f:\system directory. f:\login> cd \system 2. Insert the Btrieve disk which was shipped with your copy of NetWare in drive A. 3. Copy the following files from the Btrieve disk to the f:\system directory. f:\system> copy a:\system\*.* 4. Btrieve is installed using the NetWare default configuration for Btrieve, which is sufficient for CLS. You are now ready to start Btrieve on the server. :bstart If you do not wish to override the default settings, proceed to step 9; otherwise, continue with step 5. 5. From the server, start BSETUP. :load bsetup The NetWare Btrieve Setup menu appears. Use the arrow keys (, ) to select available menu options. Within BSETUP options, press F1 for help. A-1 Appendix

Appendixes 6. Select Set Configuration. (Each configuration option is discussed in the Btrieve installation manual.) Note: The following values are the minimums required by CLS; they may need to be increased if other software applications also use Btrieve. Number of open files: 20 Number of handles: 60 Largest page size: 4096 After editing the configuration options, press Esc to return to the menu. 7. Select Save Configuration, and select Yes at the Update Configuration prompt. Press Esc to return to the menu. 8. Press Esc to exit BSETUP. Start Btrieve on the server using the new settings. :bstop :bstart 9. Copy the following files from the Btrieve disk to the F:\PUBLIC directory: f:\system> copy a:\public\*.* \public 10. Btrieve will be loaded automatically each time the file server is restarted if the AUTOEXEC.NCF file is edited to include the BSTART command. Appendix A-2

Appendixes aba Additional Update Installation Steps If you installed CLS 6.1 as an update to an older version of CLS (version 4.2 or earlier), this section provides additional installation instructions for: Copying CLS System Files Renaming the CLS Program Path Accessing New CLS Programs Copying CLS System Files The following instructions assume CLS has been installed on drive C in a directory called newcls. Please substitute the appropriate drive and path where necessary. 1. If you upgraded from CLS version 4.2 or earlier, copy the clsys.dat file from your old CLS directory to the new one. (Assuming your old CLS directory is named CLS.) c:\newcls> copy \cls\clsys.dat 2. If you upgraded from CLS version 4.2 or earlier, and you are using transmittal letters, copy the files in the Letters path belonging to the old CLS directory to the Letters path belonging to the new CLS directory. (Assuming your old CLS directory is named CLS.) c:\newcls> copy \cls\letters\*.* \newcls\letters 3. If you upgraded from CLS version 4.2 or earlier, existing ledgers must be converted to the CLS 6.1 format before they can be accessed. Convert existing ledgers according to Appendix C, Converting CLS Ledgers to Version 6.1. Renaming the CLS Program Path If you want to rename your CLS directory, use Windows Explorer to do so. Remember that CLS does not recognize the long directory names supported by Windows; directory names must be eight characters or less and can contain no spaces. Note: This routine renames only the CLS program path. If you start CLS from an icon, you must edit the icon properties to reflect the new directory name. B-1 Appendix

Appendixes Accessing New Programs Password Maintenance Several new CLS programs have been added over time. Listed below are instructions for using System Initialization (SI) to allow access to the newest programs: 1. Select the System Initialization (SI) program, and choose Menu Selection 2, Password Maintenance. Press the down-arrow until you see each of the following prompts. A value of 0 may appear next to some of these prompts. Change each 0 to a 3. BR DM DS LR QE QT RA TT WI Bank Reconciliation Description File Maintenance DOS Shell Utility Lock File Release (Network version only) Query Employee Detail Query Transaction Detail Ratio Analysis Ledger Time-Tracker Worksheet Interface 2. Press Esc to move to the Accept or Escape? (A,Esc) prompt, and press A to accept the changes. Appendix B-2

Appendixes aca Converting Older CLS Ledgers to Version 6.1 If you are updating from CLS version 4.3 or later, your ledgers will be automatically converted during Ledger Start-Up (LS). However, ledgers created by earlier versions of CLS (4.2 or earlier) must be converted to the CLS 6.1 format using the CONVERT program before they can be accessed. You can also use this program to batch convert newer CLS ledgers. To access CONVERT, enter CON at the CLS Program Selection Menu. If you are updating from CLS 4.2 or earlier, do not store the converted ledgers in the same directory as the old ledger files. We recommend converting only the current generation of each ledger. The current generation contains all of the information needed to prepare current and comparative financial statements, and the year-to-date transaction detail. Convert prior periods only as needed. Hard Drive to Hard Drive With the CLS conversion program, you can only convert ledgers from one source directory to one destination directory at a time. These instructions assume your CLS 6.1 directory is called NEWCLS and your old CLS directory is CLS. Start CLS. At the CLS Program Selection Menu, type CON and press Enter. The Convert Ledger Data Files to 6.1 Format menu appears. Convert a Single Ledger (1) C-1 Appendix

Appendixes Old data drive/path CLS defaults to the current drive and path. Enter the location of the ledgers to be converted. 6.1 data drive/path CLS defaults to the CLS 6.1 program directory. Press Enter to accept the default, or enter the correct destination drive and path for the converted ledger. If you enter a directory that does not exist, CLS asks if you would like to create it. Press Y to create the directory or N to select another directory. Ledger ID Enter the I.D. of the ledger to convert, or press F1 to select from a pop-up list of ledgers found in the old CLS directory. Generation Enter the ledger generation to convert, or press F1 to select from a pop-up list of generations. Ready to begin conversion? (Y,N) Press Y to convert the selected ledger. Press N to return to the Generation prompt; press the uparrow to change a prompt response. Ledger JCC.013 has been converted! CLS converts the ledger and returns to the Ledger ID prompt; you may convert another ledger with the same source and destination paths, or press the up-arrow to change paths. Batch Conversion of Ledgers from 4.2 (or earlier) Format (2) Batch Conversion of Ledgers from 4.3 (or later) Format (3) Old data drive/path Enter the location of the ledgers to be converted. 6.1 data drive/path CLS defaults to the CLS 6.1 directory. Press Enter to accept the default, or enter the correct destination drive and path for the converted ledger. If you enter a directory which does not exist, CLS asks if you would like to create it. Press Y to create the directory or N to select another directory. CLS searches the old CLS data drive/path and displays the ledgers found. Use the arrow keys (, ), Page-Up, Page-Down, Home and End keys to scroll through the ledgers. Tag or un-tag ledgers by pressing the space bar or T. Press Enter again to accept the tagged ledgers. Appendix C-2

Appendixes Note: A diamond ( ) indicates that a ledger has already been converted to the selected destination path. If you select a converted ledger, CLS asks if you would like to reconvert it. Ready to begin conversion? (Y,N) Press Y to convert the tagged ledgers or N to return to the ledger selection window. Batch processing is complete! CLS converts the selected ledgers and returns to the Old data drive/path prompt. You may select another batch to convert, or press Esc to return to the conversion program menu. Remember: After converting one or more ledgers, run the VF program, Menu Selection 1, Verify File Integrity, for each ledger converted. If CLS detects damaged files, run the recovery routine. Floppy Disk to Hard Drive If you are keeping active ledgers on floppy disks, we encourage you to consider moving them to your computer's hard drive. CLS 6.1 data files are approximately 50% larger than those in the older versions, and that means slower performance when working with floppy disks. Start the CLS conversion program. These instructions assume you chose Menu Selection 1, Convert a Single Ledger. Respond to the following prompts: Old data drive/path Enter the drive where your data disk is located. 6.1 data drive/path CLS automatically defaults to the CLS 6.1 directory. Press Enter to accept the default, or enter the correct destination drive and path for the converted ledger. If you enter a directory which does not exist, CLS asks if you would like to create it. Press Y to create the directory or N to select another directory. Ledger ID Enter the I.D. of the ledger to convert, or press F1 to select from a pop-up list of ledgers. Generation Enter the ledger generation to convert, or press F1 to select from a pop-up list of generations. Ready to begin conversion? (Y,N) Press Y to convert the selected ledger. Press N to return to the Generation prompt; press the uparrow to change a prompt response. Ledger 'JCC.013' has been converted! CLS converts the ledger and returns to the Ledger ID prompt; you may convert another ledger with the same source and destination paths, or press the up-arrow to change paths. Continue this process for each ledger you wish to convert, changing the data disk as needed. Remember: After converting one or more ledgers, run the VF program, Menu Selection 1, Verify File Integrity, for each ledger converted. If CLS detects damaged files, run the recovery routine. C-3 Appendix

Appendixes Floppy Disk to Floppy Disk To keep old (4.2 or earlier) and new (6.1) ledgers on different disks (recommended), follow these instructions: Start the CLS conversion program. These instructions assume you chose Menu Selection 1, Convert a Single Ledger. Respond to the following prompts: Old data drive/path Enter the drive where your data disk is located. 6.1 data drive/path Enter C:\TEMPCLS, where NEWCLS is your 6.1 directory and TEMPCLS is a temporary directory in which you will store the converted ledgers before transferring them to new data disks. Note: If the TEMPCLS directory does not exist, CLS will ask if you want to create it. Enter Y to create the directory. Ledger ID Enter the I.D. of the ledger to be converted, or press F1 to select from a pop-up list of ledgers. Generation Enter the ledger generation to be converted, or press F1 to select from a pop-up list of generations. Ready to begin conversion? (Y,N) Press Y to convert the selected ledger. Press N to return to the Generation prompt; press the uparrow to change a prompt response. Ledger 'JCC.013' has been converted! CLS converts the ledger and returns to the Ledger ID prompt; you may convert another ledger with the same source and destination paths, or press the up-arrow to change paths. Continue this process for each ledger you wish to convert, changing the data disk as needed. After Conversion 1. Press Esc to return to CLS. At the Data Drive or Path prompt, enter the temporary path created by the conversion program: C:\TEMPCLS 2. Log onto any ledger in the temporary path. Use the BU program, Menu Selection 1, Backup a Ledger, to transfer each ledger in the temporary path to new data disks. 3. After all of your ledgers have been transferred to new data disks, use the LI program, Menu Selection 9 (1), Delete a Ledger, to delete each ledger from the temporary path. Remember: After converting one or more ledgers, run the VF program, Menu Selection 1, Verify File Integrity, for each ledger converted. If CLS detects damaged files, run the recovery routine. Appendix C-4

Appendixes ada Limited Edition Documentation Changes For the most part, the documentation for the Client Ledger System also applies to CLS ~ Limited Edition. However, the CLS Getting Started, Payroll Processing and Reference Guides refer to some programs and features not included in the Limited Edition. The CLS documentation refers to the CLS program path as \newcls. The correct program path for CLS ~ Limited Edition is \clsltd. Please disregard sections of the CLS manuals that refer to the following: Ledger Backup/Restore (BU) Batch backup of ledgers is not available. Ledger Initialization (LI) You may copy a Chart of Accounts only from a ledger located in the Limited Edition data path (c:\clsltd\data). Lock File Release (LR) The Lock File Release program is not included in the Limited Edition. Ledger Start-up (LS) The Limited Edition is installed in a path called clsltd; ledgers are in the clsltd\data path. You may not change these paths. System Initialization (SI) In the Set CLS Data Paths routine, the ability to enter a default data drive and path is not included in the Limited Edition. The Limited Edition automatically recognizes drives A and B as floppy disk drives. D-1 Appendix

Appendixes General Ledger Documentation Changes aea For the most part, the documentation for the Client Ledger System also applies to the CLS ~ General Ledger. However, the CLS Getting Started and Reference Guides refer to some programs and features not included in the General Ledger. The CLS Payroll Processing Guide is not included with your General Ledger documentation. The CLS documentation refers to the CLS program path as \newcls. The correct program path for the CLS ~ General Ledger is \clsgl. Please disregard sections of the CLS manuals that refer to the following: Accounting Transfer (AT) The General Ledger includes import routines for Quicken, QuickBooks and ASCII files. It does not include import routines for the following software packages: Peachtree Software TCS Software BASS Payroll Insta-Pay Multi-Company One-Write Plus Ledger Backup/Restore (BU) Batch backup of ledgers is not available. Computed Transactions (CT) The Computed Transactions program does not include the CLS after-the-fact payroll menu selections. End of Period Processing (EP) Since the General Ledger does not include an after-the-fact payroll system, the Payroll Quarter- End Date prompt will not appear. Enter Transactions (ET) Entry Mode 6, the auto-prompting payroll mode, is not included in the General Ledger. Appendix E-1

Appendixes The first entry field in the General Ledger is the Description field, instead of the Description or Employee field. The F1 key used to pop up a list of employees and vendors in CLS is not active. Ledger Initialization (LI) You may copy a Chart of Accounts only from a ledger located in the General Ledger data path (C:\CLSGL\DATA). The list of prompts that appear when revising basic ledger information does not include the following: prompts for Calendar Quarter, Current Quarter Ending Date, and prompts for fields related to the after-the-fact payroll. The Transmittal Letter Selection routine is not included. Lock File Release (LR) The Lock File Release program is not included in the General Ledger. Ledger Start-up (LS) The General Ledger is installed in a path called CLSGL; ledgers are in the CLSGL\DATA path. You may not change these paths. System Initialization (SI) In the Set CLS Data Paths routine, the ability to enter a default data drive and path is not included in the General Ledger. The General Ledger automatically recognizes drives A and B as floppy disk drives. The Set Payroll Options routine is not included with the General Ledger. The CLS Letter Heading Maintenance program is not included in the General Ledger. The CLS Text Maintenance program is not included in the General Ledger. Transmittal Letter (TL) The Transmittal Letter program is not available. Verify File Integrity (VF) Programs that allow you to rebuild or recover intermediate magnetic media files are not provided. Also, the following after-the-fact payroll programs are not available: Employee File Maintenance (EF) Employee File List (EL) Payroll File Maintenance (PF) Payroll Journal (PJ) Query Employee Detail (QE) Payroll Tax Forms (TF) Payroll Tax Worksheets (TW) CLS ~ W-2/1099 Magnetic Media CLS ~ SUTA Magnetic Media CLS ~ Unemployment Plus CLS ~ XML Filing for 940, 941 and 944 E-2 Appendix

Appendixes Glossary afa Account Ranges Account Types Accounting Transfer Add/Decimal Mode You must define the range of accounts to be used for the Balance Sheet and Profit & Loss Statement. Set up these ranges in program LI, Menu Selection 3 (1). When setting up accounts using program MF, choose an account type for each. Types define postable accounts, title accounts, and accounts which supply totals and subtotals on the financial statements. CLS allows you to import transactions from other accounting modules. Each module can produce a transfer file which CLS imports using the AT program. You may also export CLS transactions and other CLS information. In program ET you may choose whether to enter decimal points or let CLS assume that you want a decimal point inserted two places from the end of the number entered. Auto-Create Accounts Answer Y to the auto-create accounts prompt in program LI, Menu Selection 3 (1), if you want to be able to create postable accounts automatically in the ET program. Batch Number Batch Processing Beginning Balances Budget When you enter transactions in CLS, you may associate a batch number with a specific group of transactions. If you do, you can print a Transaction Register for that batch number. Enter the batch number in ET when you enter source code, month/year, etc. You may define a batch of reports to be printed routinely for each ledger. Select the correct report set. Set up a batch using program BP, Menu Selection 1; enter the number of copies of each report you want to print. Use program BP, Menu Selection 2 to begin printing. You may print reports for several ledgers at a time. CLS requires that you enter beginning ledger balances for all accounts using the ET program. You may enter budgets in two ways: as an annual budget amount using program MF, Menu Selection 1, or as period amounts using program MF, Menu Selection 4. You must choose a period-budget income statement in program LI, Menu Selection 3 (1), if you want to enter period budgets. Appendix F-1

Appendixes Chart of Accounts Default Values Departments Entry Mode Error Message File Maintenance Filename/Extension Generation Group Accounts The Chart of Accounts is a list of all accounts in each ledger stored in the cla0 master file. Define accounts using program MF, Menu Selection 1, or copy an existing Chart of Accounts using program LI, Menu Selection 2 (1). Print the Chart of Accounts using program ML, Menu Selection 1. CLS speeds data entry by anticipating some of your entries. When a value already exists in a field, it is called the default value. Press Enter to accept the default value. CLS lets you prepare a Balance Sheet or Income Statement by department. To do so, you must first define valid departments using the DF program (you may also define divisions), and then specify in program LI, Menu Selection 3 (1), that you want a Department Balance Sheet and/or Income Statement. When you enter transactions in program ET, you must select an Entry Mode. Entry Mode 1 allows you to begin with the description field and make an entry in each field. In entry modes 2 through 5 you automatically skip fields in which you do not want to make an entry. Entry Mode 6 prompts you through the payroll or vendor journal. When you make an inappropriate entry or when something goes wrong with the computer's processing, you will get an error message. Some messages identify the problem and let you correct it. Others warn you that something is wrong which may require a CLS support call. See Appendix A in the CLS Reference Guide for a list of CLS error messages. A number of CLS programs allow you to set up, add to, revise or delete master file records and print internal reports. These programs may be found on the File Maintenance sub-menu. CLS ledger files have names which are abbreviated versions of their functions, with the last three or four letters identifying the ledger I.D. The extensions are always the ledger generation number. Executable program files have an.exe extension. In CLS, individual program files begin with cl and end with.exe. You can usually identify the programs by the file names. For example, clet.exe is the CLS Enter Transactions program. Some CLS files contain data used by all ledgers, and these files are usually given a.dat extension. CLS tags files for each ledger with a three-digit number which is used as the file extension. When you create a new ledger, the first generation number is 000. The first time you run End of Period Processing (EP), the new files are generation 001, and so on. As a result, you can keep several fiscal periods of ledger data on the same drive and in the same path without conflict. Group accounts are used to summarize several accounts on financial statements; the individual account balances will appear on a subschedule. If you respond Y to the group account prompt in MF, you must specify which account number will be the last possible one in the group. Accounts that fall between the group account and the group-end account are summarized into the group account on the Balance Sheet or P&L. F-2 Appendix

Appendixes Job Cost Template Last Yr Ending Bal If you indicate in program LI that you want a Job Cost Balance Sheet and/or Income Statement, you must also specify a master job account and a last job account. The master job account is a group account with a number of subsidiary accounts which form a template which may be used for all additional jobs you create. You must create group accounts for each additional job, but the postable accounts for these new jobs may be created on-the-fly in program ET. The Supplemental Reports use the last-year ending balances which you enter in program MF, Menu Selection 1, as a starting point for the Cash Flow Statement and the Statement of Changes in Financial Position. (For balance sheet accounts only.) Ledger Consolidation CLS allows you to consolidate up to 25 ledgers into a predefined consolidation ledger using program LC. Ledger I.D. Master List Options Password Post Transactions Posting Journal Ratio Divisor Record Report Processing Each CLS ledger has a three or four-character identification code. You will use the code to select a ledger, and the I.D. is used as the last three or four characters of that ledger's file names. CLS allows you to print the contents of a master file using the list programs. You make decisions about how you want CLS to handle certain items by assigning one or more codes at the Options prompt. CLS allows you to define two system passwords and assign a specific set of accessible programs to each. You may also define a password for each ledger. Transactions entered into CLS do not affect master file balances and are not completely linked together until they are posted using the PT program. Once they are posted, they may be deleted using program DT, or unposted using program PT and corrected using program ET. If you answered Y to the posting journal prompt in program LI, when you use the PT program CLS will print a journal which records the transactions posted. This can be used as an audit trail. If you use a special-format income statement with ratio columns, you may enter a current and year-to-date ratio-divisor between 0 and 999,999,999.99 in the PL program or in program LI, Menu Selection 3 (5). You will also be asked for a ratio-divisor description (e.g., costs per square foot). You may also enter separate departmental ratio-divisors and descriptions in program DF to be used for Departmental Income Statements. Within a computer file such as your Chart of Accounts, there are a number of records. A record in your Chart of Accounts file, for example, contains all the information stored for one account. A number of CLS programs print financial statements and other reports. You will find them listed on the Report Processing sub-menu. Appendix F-3

Appendixes Source Code Spacing Subsidiary Schedule Transmittal Letter Total This Year YTD Balance You may have up to 20 source codes which define different kinds of transactions entered in CLS. Define source codes for each ledger in program LI, and then use them when you enter transactions in program ET. The transaction register (TR) program lets you list transactions by source code. For example, if Source Code 1 is Cash Receipts, when you print a Transaction Register for Source Code 1, it will be titled Cash Receipts. CLS lets you enter a special character such as a caret (^) or a number to control vertical spacing on a report. A subsidiary schedule shows the detail from group accounts which are summarized on financial reports. You may rename a subsidiary schedule with a Type 3 account. Create compilation or review letters to accompany financial statements. Define a maximum of 27 cover pages, 99 headings and 999 letter texts using program SI, Menu Selections 3 and 4. You may also create a Cover Page, Table of Contents, several pages of Footnotes and a Notepad. Address the letters using program LI, Menu Selection 8 (2,2), and print them using program TL. You may include transmittal letters in batch processing. For comparative reports, enter history for each fiscal period except the current one. Then enter the balance at the end of the previous year. Represents the YTD account balance at the beginning of the current fiscal period. F-4 Appendix

Appendixes aga CLS Program Codes Following is an alphabetical list of the program codes used in CLS: AT Accounting Transfer NF New Features in CLS BP Batch Processing PF Payroll File Maintenance BR Bank Reconciliation PJ Payroll Journal BS Balance Sheet PL Profit & Loss Statement BU Ledger Backup/Restore PT Post Transactions CT Computed Transactions QA Query Account Detail DA Depreciation/Amortization Schedules QE Query Employee Detail DF Department File Maintenance QT Query Transaction Detail DL Department File List RA Ratio Analysis DM Description File Maintenance RF Report File Maintenance DS Dos Shell Utility RL Report File List DT Delete Transactions SI System Initialization EF Employee File Maintenance SR Supplemental Reports EL Employee File List TB Trial Balance EP End of Period Processing TF Payroll Tax Forms ET Enter Transactions TL Transmittal Letter LC Ledger Consolidation TM Payroll Tax - Magnetic Media (optional) LF Ledgers on File TR Transaction Register LI Ledger Initialization TT Time-Tracker LR Lock File Release TW Payroll Tax Worksheets LS Ledger Start-up TX Tax Package Interface (optional) MF Master File Maintenance VF Verify File Integrity ML Master File List WI Worksheet Interface Appendix G-1

Appendixes aha CLS Ledger Limits Accounts 8 digits Departments 9999 departments Transactions 300,000-400,000 per period or year, per ledger Accounting Periods 1-13 periods per year Dollar Amounts ± 2.5 billion in ledger accounts ± 21 million in payroll/vendor records H-1 Appendix

Appendixes CLS End-User License Agreement Financial MicroSystems, Inc. End-User Software License Agreement Important When you open the sealed envelope containing the CLS Software you are accepting all of the terms and conditions of this Agreement. If you do not agree with this Agreement, return the Software, UNOPENED, along with the rest of the package, to Financial MicroSystems, Inc. This is a legal Agreement between you, the end-user, and Financial MicroSystems, Inc. (FMSI), a Georgia corporation. By opening this sealed software, you are agreeing to be bound by the terms and conditions of this Agreement. If you do not agree to the terms and conditions of this Agreement, promptly return the unopened Software and the accompanying items (including all written materials) to the place where you obtained them for a full refund (not including shipping and handling). All returned items must be in resalable condition or a restocking fee will be charged. This package contains software ("Software") and related written materials ("Documentation"), both of which are sometimes collectively herein referred to as the Package. The term "Software" shall also include any and all upgrades, modified versions, updates, add-ons and copies of the Software licensed to you by FMSI. FMSI grants to you a nonexclusive license to use the Software and Documentation, provided that you agree to the following: 1. GRANT OF LICENSE/SUBLICENSE. FMSI grants to the end-user a non-exclusive license and sublicense to use the enclosed Software and Documentation (both of which are sometimes collectively herein referred to as the Package) at a single address location only. A license is granted for software which is owned by FMSI, while a sublicense is granted for forms and/or font software included with CLS which is owned by third parties from whom FMSI has acquired a license(s) to market the forms and/or font software. For convenience, all licenses and sublicenses of the software are hereinafter referred to as a license. aia Client Ledger System Software may contain licensed form image software ( Form Images ). You may not extract or separate the Form Images or any part thereof from the Package for any purpose. You may not modify, alter, disassemble, decrypt, reverse engineer, or decompile the Form Images. These Form Images are the property of Nelco Solutions, which holds copyrights or other proprietary rights to its software products. The Form Images are licensed from Nelco Solutions, 2480 Walker Ave NW, Grand Rapids, Michigan 49544. Client Ledger System Software may also contain licensed font software which generates typeface designs ( Font Software ). You may not alter the Font Software for the purpose of adding any functionality which such the Font Software did not have when delivered to you as part of the Package. You may not extract or separate the Font Software or any part thereof from the Package for any purpose. You may not modify, alter, disassemble, decrypt, reverse engineer, or decompile the Font Software, and you agree not to make any attempt to discover or obtain access to the source code of the Font Software. You may not embed the Font Software into any document which is distributed as a commercial product in exchange for a fee or other consideration (for example, you may not embed the Font Software into an electronic book that is offered to the public for a fee). The Font Software can only be used in connection with the Package and in the course of your customary and ordinary business. You may not distribute or sublicense the Font Software, except that you may electronically distribute documents created by the Package in a static graphic image or in an embedded electronic document which is distributed in a format that permits only the viewing and printing (and not the editing, altering, enhancing, or modifying) of such static graphic image or embedded document. Internal Use shall not include any use of the Font Software by entities that are neither your authorized employees nor your authorized agents. All such employees and agents shall be notified by you as to the terms and conditions of this End-User Agreement and shall agree to be bound by it. Appendix I-1

Appendixes The Font Software is the property of Monotype Imaging, Inc., which holds copyrights or other proprietary rights to its software products. The Font Software is licensed from Monotype Imaging, Inc., 985 Busse Road, Elk Grove Village, Illinois 60007. You may not use the enclosed Software at more than one physical location at a time. If you intend to use the Software simultaneously at more than one physical location, you must purchase a Package for each such location. a. Client Ledger System This Package is sold under a site license: (1) Single-User Version: You may install the Software and use the Package on a hard disk or other storage device for a maximum of ten (10) computers at a single location. (2) Network Version: You may install and use the Software on a single file server for use on a single local area network for either (but not both) of the following purposes: (a) permanent installation on a hard disk or other storage device, with access by up to fifteen (15) workstations or (b) use of the Software over such network, provided the number of different computers on which the Software is installed does not exceed fifteen (15) computers. b. CLS ~ The Limited Edition, CLS ~ CheckWriter, CLS ~ General Ledger, and CLS ~ Remote Entry These Packages are sold under a single-computer license. You may install the Software and use the Package on one computer at a single physical location. 2. COPYRIGHT. The Package is owned and copyrighted by FMSI, while the forms and/or font software included with the Package is owned and copyrighted by third parties as indicated in paragraph 1, above. All software distributed with the Package is protected by the United States copyright laws and international treaty provisions. Therefore, you must treat the Package like any other copyrighted material (e.g., a book or musical recording). You may not copy the Documentation. You may make backup copies of the Software, provided your backup copies are not installed or used on any other computer. You agree to include in any backup copies the same copyright and propriety notices which appear on and in the Software. You may not alter, decompile or disassemble the Software, and you may not distribute the Software or any part of the Package to any other party. Except for the express licenses to the Software granted herein, all rights are reserved to FMSI and its suppliers. 3. TRANSFER. You may not lend, rent or lease the Package, but may transfer all of your rights to the Package on a permanent basis provided you retain no copies including copies stored on your computer, the recipient agrees to the terms of this Agreement, and FMSI receives written notice of such a transfer and a transfer fee of $25.00. 4. TERM. This license is effective until terminated. You may terminate it by destroying the entire Package and all copies of the Software. This license will also terminate if you fail to comply with any term or condition of this Agreement. You agree, upon termination, to destroy all copies of the Software and Documentation. 5. LIMITED WARRANTY. FMSI warrants to the original licensee that the Software will perform substantially in accordance with the accompanying written materials for a period of ninety (90) days from date of receipt. Some states do not allow limitations on duration of an implied warranty, so the above limitation may not apply. CUSTOMER REMEDIES. FMSI's entire liability and your exclusive remedy shall be, at FMSI's option, either (a) return of the price paid (not including shipping and handling) if all returned items are in resalable condition or, (b) repair or replacement of the Software that does not meet FMSI's Limited Warranty, and which is returned to FMSI with a copy of your receipt. This Limited Warranty is void if failure of the Software has resulted from accident, abuse or misapplication. Any replacement software shall be warranted for the remainder of the original warranty period or 30 days, whichever is longer. NO OTHER WARRANTIES. THIS PACKAGE IS PROVIDED "AS IS". FMSI DISCLAIMS ALL OTHER WARRANTIES, EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. FMSI S SUPPLIERS DO NOT MAKE ANY WARRANTIES WTH REGARD TO THE PACKAGE, EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. THIS LIMITED WARRANTY GIVES YOU SPECIFIC RIGHTS AND YOU MAY ALSO HAVE OTHER RIGHTS WHICH VARY FROM STATE TO STATE. NO LIABILITY FOR CONSEQUENTIAL DAMAGE. IN NO EVENT SHALL FMSI OR ITS SUPPLIERS BE LIABLE FOR ANY DAMAGES WHATSOEVER (INCLUDING, WITHOUT LIMITATION, DAMAGES FOR LOSS OF BUSINESS PROFITS, BUSINESS INTERRUPTION, LOSS OF BUSINESS INFORMATION, OR OTHER PECUNIARY LOSS) I-2 Appendix

Appendixes ARISING OUT OF THE USE OF OR INABILITY TO USE THIS FMSI PRODUCT, EVEN IF FMSI HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THEREFORE, YOU ASSUME THE ENTIRE RISK AS TO THE RESULTS AND PERFORMANCE OF THE PACKAGE. BECAUSE SOME STATES DO NOT ALLOW THE EXCLUSION OF LIMITATION OF LIABILITY FOR CONSEQUENTIAL DAMAGES, THE ABOVE LIMITATION MAY NOT APPLY TO YOU. 6. THIS AGREEMENT is governed by the laws of the State of Georgia. Should you have any questions concerning this Agreement, or if you desire to contact FMSI for any reason, please write: Financial MicroSystems, Inc., 3000 Langford Road, Suite 2500, Norcross, Georgia 30071. Appendix I-3

Index Index A Accounting Cycle 5-2 Accounting Transfer (AT) 1-6 Accounts Copying a Chart of Accounts 4-3, 4-4 Description 5-4 Format of Number 4-3, 5-3 Options 5-5, 5-6 Querying 3-24 to 3-25 Ranges 5-3 Record Size 4-3 Spacing 5-5 Title 5-4, 5-5, 5-7, 5-21, 5-25 Types 5-4, 5-5, 5-6, 5-7, 5-9, 5-20, 5-21, 5-24, 5-25 Add/Decimal Mode 2-18, 3-10 After-the-Fact Payroll (see Passive Payroll) Ampersand (&) 5-41 Asterisk (*) 3-5, 3-17, 3-35, 5-44 AT Import Drive 2-19 Audit Trail 1-5 B Backup and Restore (BU) 1-6 Backup Drive 2-20 Balance Sheet (BS) 1-6, 3-28 to 3-30, 5-20 to 5-22 Chart of Accounts 5-3 to 5-8 Departmental 5-11 to 5-13 Job Cost 5-38 to 5-40 Standard 3-28 to 3-30, 5-20 to 5-22 Subschedules (see Group Accounts) Bank Reconciliation 1-6, 5-42 to 5-43 Basic Ledger Information 4-5, 4-6 Batch Number, Transactions 3-10, 3-17, 3-27, 3-32 Batch Processing (BP) 1-6, 3-34 to 3-36 Batch Printer 3-35, 3-36 Collated Sets 3-35, 3-36 Page Numbers 3-35 Printing Reports 3-36 Setup 3-34 to 3-35 Beginning Balances Cash Flow Statement 4-6, 4-7, 5-30 Employee or Vendor Balances 4-10 History 5-18, 5-19 Ledger 4-10, 4-11 Statement of Changes in Financial Position 4-7, 5-30 Bold Effects 5-6, 5-21, 5-25, 5-30 Btrieve (Novell Netware), Installing Appendix A Budgets Annual Budgets 4-8, 5-16, 5-17 Job Budgets 4-8, 5-17 Period Budgets 4-8, 5-16 C Cafeteria Plan (see Payroll File Maintenance) Calculator 2-8 Cash Disbursements Journal (see Source Codes) Cash Flow Statement (SR) 1-9, 5-29 to 5-35 Beginning Balances 4-7, 5-30 Create or Modify 4-6, 5-29 to 5-31 Line Descriptions 5-29 Line Numbers 5-29 Line Options 5-29, 5-30 Line Types 5-29, 5-30 Spacing Characters 5-29 Cash Receipts Journal (see Source Codes) Chart of Accounts (ML) 1-8, 5-3 to 5-10 Balance Sheet Accounts 5-3 to 5-8 Copying 4-3, 4-4 P&L Accounts 5-3 to 5-7, 5-9, 5-10 Client Bill (see Transmittal Letters); Copying 4-4 CLS General Ledger Appendix E CLS License Agreement Appendix I CLS Limited Edition Appendix D CLS Program Abbreviations 1-6 to 1-10, Appendix G CLSPEC Path 2-3 to 2-4 Column 1 Default Account 4-10 Comparative Financial Statements (see Balance Sheet, Profit & Loss Statement) Comparative History 4-7, 5-18 to 5-19 Computed Transactions (CT) 1-7 Consolidation, Ledger (LC) 1-8, 5-41 Copying CLS System Files Appendix B Converting Older Ledgers Appendix C Cover Page (see Transmittal Letters) Creating a New Ledger Chapter 4 D Data Paths 2-15, 2-19, 2-20 Dates Today's Date 2-15, 3-2 Transaction Dates 3-10, 3-11 Default Account 4-10 Delete Transactions (DT) 1-7 Department File List (DL) 1-7 Department File Maintenance (DF) 1-7, 5-11 to 5-13 Adding or Revising 4-8 Balance Sheet 5-13 Department Number 5-11 to 5-13 Gross Profit Analysis 5-6, 5-11 Profit and Loss Statement 5-11 to 5-13 Depreciation/Amortization Schedules (DA) 1-7 Description File Maintenance (DM) 1-7, 3-11, 4-4 Copying Memorized Descriptions 4-4 Disk Drives AT Import Drive 2-19 BU Backup Drive 2-20 EP Backup Drives 2-20 Data Drive 2-8, 2-19, 3-2 Valid Drive Letters 2-8, 2-19 Divisions 4-8, 5-11 to 5-13 Dollar Sign ($) 5-45 DOS Shell (DS) 1-7 1 - Index

Index E Employee File Maintenance (EF) 1-7 Adding/Revising 4-10 Balances 4-10 Employee/Vendor Number 4-10 Employee File List (EL) 1-7 End of Period Processing (EP) 1-7, 5-14 to 5-15 Backup Paths 2-20 Reclosing a Period 5-14, 5-15 Enforced Cosmetics 5-7, 5-21, 5-25, 5-31 Enter Transactions (ET) 1-7, 3-8 to 3-16, 5-44 to 5-46 Add/Decimal Mode 2-18, 3-10 Batch Number 3-10 Entry Mode 2-18, 3-10 Payroll Mode 2-18, 3-10 Plus/Minus Mode 2-18, 3-10 Shortcuts (Special Keystrokes) 3-8 to 3-9 Escape Key 3-5, 3-6, 3-8 F Features of CLS 1-2 to 1-5 File Maintenance (FM) 3-4 Financial Ratios (see Ratio Analysis) Financial Statements Balance Sheet 3-28 to 3-30, 5-20 to 5-22 Profit & Loss Statement 3-30 to 3-31, 5-23 to 5-28 Supplemental Reports 5-29 to 5-35 Footnotes (see Transmittal Letters) Copying 4-4 Function Keys F1, F10 3-6, 3-8, 3-9 F2 through F9 3-8, 3-9 G General Ledger, CLS Appendix E General Ledger (TB) 1-9, 3-33 Glossary Appendix F Gross Profit Analysis 5-6, 5-11 Group Accounts 5-5, 5-6 H Hardware and Software Requirements 1-13 I Income Statement (see Profit & Loss Statement) Income Tax Calculations 5-36 Income Tax Summary; Copying 4-4, 4-5 Installation Accessing New CLS Programs Appendix B Btrieve (Novell Netware) Appendix A CLSPEC Path 2-3 to 2-4 Converting Older Ledgers Appendix C Laser Printer Control 2-9 to 2-13 Monitor, Monochrome 2-3 Network Version 2-2 to 2-4, Appendix A Renaming CLS Program Path, Appendix B Single-User 2-2 to 2-4 Inventory Adjustments 5-37 Italics Effects 5-6, 5-21, 5-25, 5-30 J Job Cost Closing a Job 5-40 Creating Job Accounts 4-8, 5-38 to 5-40 Deleting Job Accounts 5-40 K Keystrokes Transaction Entry 3-8, 3-9 Within a Screen 3-6, 3-7 L Laser Printer Setup 2-9 to 2-13 Last Year Ending Balances 4-7, 5-30 LeadSheets (TB) 1-9, 4-4 Ledger Checklist 4-12 Copying Setup Information 4-3 to 4-5 Creating Chapter 4 Data Files 1-11, 1-12 Departmentalizing 4-8, 5-11 to 5-13 Ledger I.D. 3-2, 4-2, 4-3 Ledger I.D. Length 2-17 Ledger Name 3-3, 4-3 Ledger Consolidation (LC) 1-8, 5-41 Ledger Initialization (LI) 1-8, 5-3 Ledgers on File (LF) 1-8 Ledger Start-up (LS) 1-8, 3-2 to 3-3 License Agreement, CLS Appendix I Limited Edition, CLS Appendix D Limits, CLS Ledger Appendix H Lock File Release (LR) 1-8 M Main Menu 3-4 Master File List (ML) 1-8 Master File Maintenance (MF) 1-8 Memorized Descriptions (DM) 1-7, 2-17 to 2-18, 3-11 Copying 4-4 Menu Structure 3-4 to 3-5 Monitor, Monochrome (see Installation) N New Features in CLS (NF) 1-8 Notepad (see Transmittal Letters) Copying 4-4 Novell Netware 2-3, Appendix A Index - 2

Index O On-Demand Support 2-22 Operator Preferences, Setting 2-17 to 2-19 Options Account (see Accounts, Options) P Page Numbers, Report 3-35 Passive Payroll 4-9, 4-10 Passwords System 2-20, 2-21 Payroll File Maintenance (PF) 1-8 Adding or Revising a Payroll Series 4-9 Column Definition 4-9 Employee Balances 4-10 Employee Number 4-10 Payroll Journal (PJ) 1-8, 4-9 Payroll Options, Setting 2-19 Payroll Tax Forms (TF) 1-9 Payroll Tax Worksheets (TW) 1-10 Plus/Minus Mode 2-18, 3-10 Post Transactions (PT) 1-8, 3-19 Posting Journal 3-20 Unposted Transactions 3-17 to 3-18, 3-21, 5-44 Pound Sign (#) 5-45 Printer Setup Laser Printers 2-9 to 2-13 Printer Setup Code 2-10 to 2-13 Prior Period Adjustments (Source 9) 4-11, 5-45 Priority Support 2-22 Profit & Loss Statement (PL) 1-8, 3-30 to 3-31, 5-23 to 5-28 Chart of Accounts 5-3 to 5-10 Departmental 5-11 to 5-13 Job Cost 5-38 to 5-40 Percent of Sales Divisor (E option) 5-6 Period Budgets 4-8, 5-16 Special Format 5-23 to 5-25, 5-27, 5-28 Standard 3-30, 3-31, 5-23 to 5-25 Sub-schedules (see Group Accounts) Program I.D.s 1-6 to 1-10, Appendix G Program Path, Renaming, Appendix B Q Query Account Detail (QA) 1-8, 3-24 to 3-25 Query Employee Detail (QE) 1-9 Query Transaction Detail (QT) 1-9, 3-26 to 3-27 R Ratio Analysis (RA) 1-9 Copying Financial Ratios 4-5 Reclosing a Period (EP) 5-14, 5-15 Record Size, Account 4-3 Repeating Transactions (Source 6, 16) 5-44, 5-45 Report File List (RL) 1-9 Report File Maintenance (RF) 1-9, 5-29 to 5-31 Copying Report Formats 4-4 Report Processing (RP) 3-4, 3-5 Report Titles, Changing 5-4, 5-5 Retention Cycle, Default 2-18 Reversing Transactions (Source 7, 17) 5-45 S Sample Data Chapter 3 Source Codes 3-9, 3-10, 3-32, 5-44, 5-45 Spacing Control Characters 5-5, 5-29 Special Format Income Statement (see Profit & Loss Statement) Starting CLS 2-14 to 2-15 Statement of Changes in Financial Position (SR) 1-9, 5-29 to 5-31, 5-34, 5-35 Beginning Balances 4-7, 5-30 Create or Modify 4-6, 4-7, 5-29 to 5-31 Line Descriptions 5-29 Line Numbers 5-29 Line Options 5-29, 5-30 Line Types 5-29, 5-30 Spacing Characters 5-29 Statement of Income and Retained Earnings 3-31, 5-23 Subsidiary Schedules (see Balance Sheet, Group Accounts, Profit and Loss Statement) Supplemental Reports (SR) 1-9, 4-6, 4-7, 5-29 to 5-35 System Design Chapter 1 System Initialization (SI) 1-9, 2-16 to 2-21 Password Maintenance 2-20, 2-21 Set System Parameters 2-16 to 2-20 T Table of Contents (see Transmittal Letters) Copying 4-4 Tax Forms (see Payroll Tax Forms) Tax Worksheets (see Payroll Tax Worksheets) Technical Support Policies 2-22 Time-Tracker, Ledger (TT) 1-10 Transaction Processing 5-44 to 5-46 Transaction Register (TR) 1-9, 3-32 Unposted Transactions 3-17 to 3-18 Transactions, Query (QT) 1-9, 3-26 to 3-27 Transfer Files (see Accounting Transfer) Transmittal Letters (TL) 1-9, 5-47 to 5-49 Trial Balance (TB) 1-9 Tutorial Chapter 3 U Underline Effects 5-6, 5-21, 5-25, 5-30 Unemployment Reports (see Payroll Tax Worksheets) Unposted Transactions (see Post Transactions, Transaction Register) V Vendor Journal 4-9 3 - Index

Index Vendor File Maintenance (EF) 1-7 Adding/Revising a Vendor Series 4-9 Column Definition 4-9 Vendor Balances 4-10 Vendor Number 4-10 Verify File Integrity (VF) 1-10 W Windows Environment 2-5 to 2-7 Work-in-Progress sub-ledger (see Job Cost) Worksheet Interface (WI) 1-10 Y Year-to-Date Balances Employee/Vendor 4-10 Ledger 4-10, 4-11 Index - 4