Setting up the Sales Ledger in the Data Manager Preferences

There are two sections of Preferences that contain settings relevant to the Sales Ledger. These screens and settings are described below.

This Preference will be especially beneficial to volume users where the inputting task would otherwise be very laborious. Note that this setting also applies to the Purchase Ledger: please refer to the Purchase Ledger setup chapter for details of its implications in that volume.

Default credit stage

When creating an Invoice and the Client does not have a current Credit Stage, Enterprise 6 will use this Credit Stage as a default. This will enable this Invoice to enter the debt collection process. See the section elsewhere in this chapter on Credit Stages for more information.

Calculate prices to … decimal places

Wherever Prices or Discount percentages are calculated by Enterprise 6, they will be calculated and stored to an accuracy specified here. This can be used to overcome the problems associated, for example, with giving Discount percentages on very low prices, which are aggravated if the Quantities are large. For example, a Quantity of 1,000 at a Unit Price of £0.26 and with a Discount of 10% will result in a Sales Amount of £230.00 with the preference set to 2, but £234.00 with it set to 4. The preference can be set to between 2 and 6 decimal places, with a default of 2. ‘Amounts’ (as opposed to ‘Prices’) and all accounting numbers are not affected by this setting, and are carried out to 2 decimal places. Note that this setting does not affect the way that the Prices are actually displayed - this is also set to 2 decimal places.

Default payment terms

When creating an Invoice and the Client does not have default Payment Terms in its record, Enterprise 6 will use these as a default.

Default currency code

If you intend to use the Multi-currency volume, enter here the code of your principal currency.

Ageing 1, 2, 3

These three fields control the first, second and third Ageing Periods for use on Aged Debtors and Aged Creditors reports, so might for example, be set to 30, 60, 90.

Print orders’ and invs’ comments

Both the Sales Order and Invoice screens contain Comments fields which can be printed on associated paperwork. To print them, a printing check box on page two of the relevant screen should be switched on. If you would like this check box switched on by default (ie you would usually like these Comments printed), switch this preference on. The Comments appear as the first item on the Invoice or Sales Order form.

Print their items’ descriptions

When entering Products, there is a Description field available to record details of the Product (perhaps key specifications). If you would like these Descriptions to appear on Invoices and Sales Order paperwork, switch this preference on. The description will appear on the line(s) below the Product Name, slightly indented and in a font size one size smaller.

Transfer discount to inv product

If switched on, when Invoices are created from Orders, each Order Item that contains a Discount figure will, in the corresponding Invoice Item, have text of the pattern ‘@ 20% Discount’ added to the Product Name. This will therefore be printed on the Invoice.

Enforce credit checks

Enterprise 6 has a two-stage credit-checking procedure. The second, more serious, stage is governed by this check box. If switched on, it will not allow Invoices to be raised if the Client is in breach of their Credit Terms (either overdue, or over their limit). A window appears informing you of their current credit situation and which Credit Stage they have reached.

Show credit checking window

This check box governs the first, less serious stage of the credit-checking process. When entering an Invoice for a client that is in some way in breach of their Credit Terms, if this check box is switched on, Enterprise 6 will display a window warning of this breach, but only in an advisory capacity. In other words, the User can override the warning and confirm the Order if desired.

Ask ‘print remittances’ after receipt

The Sales Ledger features a ‘Remittance Receipt’ function. In addition, remittance receipts can be printed individually as part of the ‘Invoice Receipt’ function. Switch this preference on if you would like the opportunity to print the form. This Preference is the same one as the Purchase Ledger option, Ask ‘Print Remittance?’ after Payment, so your setting here has to be your setting on the Purchase side as well.

Allow unprocessed invoices

If this check box is switched on, it is possible to enter and save Invoices without printing them, posting them to the Nominal Ledger or even batching them. This is same Preference as that of the same title in the Purchase section, so cannot be set independently.

Allow cancellation of printed invoices

If this check box is switched on, it is possible to cancel Invoices, even after they have been printed and/or posted to the Nominal Ledger. If an Invoice that has been posted is cancelled, a reverse posting is sent to the Nominal Ledger. Note that it is only possible to cancel an Invoice in this way immediately after printing and posting, when Enterprise 6 brings back the Invoice screen. Cancel it by pressing the [X] button.

Allow invoices posting without printing

If set on, this means that there is no need to actually print an Invoice in order to post it to the Nominal Ledger. You simply have to enter the Invoice and press [√]. Note that this preference will not work if ‘Allow unprocessed Invoices’, is set because the latter will take precedence - as you Accept an Invoice entry it will simply leave it as unprocessed. The preference does not, of course, prevent you from printing (and thereby posting) those Invoices that need to be.

Allow invoices with a total of zero

Note that when these Invoices are posted, a Nominal Ledger Batch will be created, identifying on the Audit Trail that it took place, and Transaction postings will happen. This is the same Preference as that with the same title in the Purchases section, so switching this on will automatically switch on the corresponding option there as well.

Show receipts window after posting

If switched on, this allows you, immediately after entering an Invoice, to post an Receipt against it. The window works exactly as per the ‘Invoice Receipts’ menu item, except that it is automatically assumed that you are allocating the Receipt to the Invoice just entered. Note that the Receipt window will only appear if you have already posted the Invoice to the Nominal Ledger (ie you have not used the Batch option). This may be either after the entry of an Invoice that was printed and posted or after one that was just posted using the ‘without printing’ method. If you cancel the Receipt window, this just means that no receipt was received at the time of Invoicing - it doesn’t cancel the Invoice overall. The Receipts window will not be brought up after batch posting or batch printing, whatever the setting here.

Require same analysis for statements

This is an important setting to consider if you are issuing Invoices with different Analysis Codes, especially if those Analyses Codes represent departments with different addresses and/or VAT Numbers. If the setting is switched off, all Invoices will carry details taken from the Form Settings 1 page of Preferences, irrespective of any addresses or other text attached to the Analyses. Statements will also be issued from this central address. If switched on, the Invoices and Statements will take their addresses and other text from the relevant Analysis record.

Credit notes use separate unique no.

If this check box is switched off, Credit Notes will be produced as part of the Invoice Number sequence.

Ledger allocations from

This setting is automatically set to the date of installation.

The items on this screen that are relevant to the Sales Ledger are described below. Note that, if creating a new data file using the Business Templates system, the fields will be filled in with default values. If you change any of the significant Accounts or Transaction Types, be sure to amend the fields on this screen appropriately.

Current year periods

Type in the start and end Periods of your current financial year, eg 2003/03 to 2004/03. These fields will be automatically updated when the Close Financial Year function on the Utilities menu is run.

VAT accounts

Type in the actual Account numbers of the two VAT Accounts - the one used to process the current VAT Return, and the one used as a Control Account to maintain current VAT Payments owing.

Cash VAT suspense account

If you wish to use Cash VAT processing, switch on the Cash VAT check box and enter here the appropriate Account Code of your Cash VAT Suspense Account.

Default standard VAT

Type in the VAT Code of the preferred default, which will be used everywhere in Enterprise 6 where VAT is calculated.

Invoice posting trans

Type in the Transaction Code of the Transaction Type you have created to post Sales Invoices. The Transaction type will describe a posting in which the Debit Account is Trade Debtors and the Credit Account is a default Sales Analysis. It is recommended that, when setting up the Transaction Type whose Code you are entering here, you switch on the check box entitled ‘Prevent use of this Transaction Type in Nominal/Nominal Ledger postings’. Invoices should be created in the Sales Ledger and from there posted to the Nominal Ledger - they should not be entered directly to the Nominal Ledger and switching this check box on will prevent this happening. Using this Transaction Type in the Nominal Ledger carries with it the risk that your Trade Debtors account will no longer equal the sum of your Sales Accounts. For the same reason, you should also switch on this check box for the seven other Transaction Types whose Codes also appear on this Preferences screen, and for all Accounts affected by those Transaction Types.

Invoice receipt trans

Type in the reference to the Transaction Type describing a Sales Invoice payment, in which the Debit will be the default Bank Account, and the Credit will be the Trade Debtors Account.

Deposit receipt trans

Type in the Transaction Code of the Transaction Type you have created to post Sales Deposits. The Transaction type will describe a posting in which the Debit Account is a default bank account and the Credit Account is the Deposits Holding Account.

Deposit reconcil trans

Type in the Transaction Code of the Transaction Type you have created to reconcile Sales Deposits. The Transaction type will describe a posting in which the Debit Account is the Deposits Holding Account and the Credit Account is the Trade Debtors.

Post bank receipts/payments by company

When using the ‘Invoice Receipt’ function in the Sales Ledger or the ‘Purchase Payment’ function in the Purchase Ledger, there are two alternatives about the format of the subsequent Nominal Ledger posting. When receiving a number of cheques on a single day, for example, it is possible using the ‘Invoice Receipt’ function to list all the Invoices being paid, highlight them all and click the [Receipt] button. What happens next depends on the setting of this check box. If switched on, separate single-sided postings will be made for each Company. Should a Company be paying more than one Invoice, a single posting covering all these Invoices will be created, providing that the Invoices feature the same Analysis Code. If switched off, a single posting is made, containing all Invoices being paid, irrespective of Company. If the Invoices being paid cover more than one departmental Analysis, one posting will be made for each Analysis. Whichever option is selected, the bank posting(s) will always be balanced by itemised Debtors/Creditors postings, so that the Payment/Receipt history is maintained. The implication of this for Bank Reconciliation is that one Receipt/Payment posting may not necessarily equate to one physical transaction at the bank, nor to one line on the Bank Reconciliation listing.

If you do physically pay in to the bank multiple cheques from multiple companies using one payslip, this would appear on your bank statement as one line, but in Enterprise 6 as multiple lines if this option is on, and as a single line if it is off.

This Preference will be especially beneficial to volume users where the inputting task would otherwise be very laborious. Note that this setting also applies to the Purchase Ledger: please refer to the Purchase Ledger setup chapter for details of its implications in that volume.