Difference between revisions of "Unit integration to nominal ledger"

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This article explains how Platinum integrates your {{VS}} to your {{NL}}.
 
This article explains how Platinum integrates your {{VS}} to your {{NL}}.
  
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{{Information|text=Please note: If your system is using the Automatic Cost of Sales facility you do not need to post the journals described below. The system will post journals between Stock Value and Vehicle Accruals as each vehicle is created. When sold the system will post a journal between Stock Value and Cost of Sales. The Debit entry to Vehicle Accruals is created when you post the supplier invoice to the Purchase Ledger or when printing a purchase invoice for a Used/Part Exchange Vehicle. If you are unsure which method your system is using please {{SupportContact}}.}}
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{{Information|text=Please note: If your system is using the Automatic Cost of Sales facility you do not need to post the journals described below. The system will post journals between Stock Value and Unit Accruals as each unit is created. When sold the system will post a journal between Stock Value and Cost of Sales. The Debit entry to Unit Accruals is created when you post the supplier invoice to the Purchase Ledger or when printing a purchase invoice for a Used/Part Exchange Unit. If you are unsure which method your system is using please {{SupportContact}}.}}
  
 
== More Information ==
 
== More Information ==
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At the end of each month we need to achieve two things, from an accounts point of view: -
 
At the end of each month we need to achieve two things, from an accounts point of view: -
  
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#The profit and loss to show the sale and cost of vehicles sold at the end of the month.
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#The profit and loss to show the sale and cost of units sold at the end of the month.
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#The balance sheet to show the value of vehicle stock at the end of the month.
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#The balance sheet to show the value of unit stock at the end of the month.
  
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To achieve this we use a combination of vehicle report generator reports and journal entries.
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To achieve this we use a combination of unit report generator reports and journal entries.
  
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=== Operations - New Vehicles ===
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=== Operations - New Units ===
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==== When the vehicle is delivered ====
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==== When the unit is delivered ====
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*Create the vehicle record and enter all the necessary details, including the vehicle purchase credentials.
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*Create the unit record and enter all the necessary details, including the unit purchase credentials.
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*Update the Purchase tab of the vehicle stock record with the following fields:-
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*Update the Purchase tab of the unit stock record with the following fields:-
 
** {{DataValue|Supplier}}
 
** {{DataValue|Supplier}}
 
** {{DataValue|Purchase Date}}
 
** {{DataValue|Purchase Date}}
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*Post the purchase invoice into the purchase ledger using Purchase Ledger Postings, splitting the delivery costs accordingly.
 
*Post the purchase invoice into the purchase ledger using Purchase Ledger Postings, splitting the delivery costs accordingly.
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*If you haven't received the invoice or you have no financial details of the vehicle you are entering into stock, create the vehicle and these areas will be posted into the accounts when it arrives and you will need to update/check the purchase detailed on the vehicle record matches the invoice.
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*If you haven't received the invoice or you have no financial details of the unit you are entering into stock, create the unit and these areas will be posted into the accounts when it arrives and you will need to update/check the purchase detailed on the unit record matches the invoice.
  
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==== When the Vehicle is sold ====
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==== When the Unit is sold ====
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*Invoice the vehicle through the vehicle sales, sales ordering/invoice routine.
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*Invoice the unit through the unit sales, sales ordering/invoice routine.
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*At the month end work out the cost of the vehicle sold and post a journal for this cost from the balance sheet across to the Profit and Loss, Cost of Sales.
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*At the month end work out the cost of the unit sold and post a journal for this cost from the balance sheet across to the Profit and Loss, Cost of Sales.
  
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The result is the stock figure on the balance sheet is reduced and the cost of sale on the profit and loss is increased. The vehicle in the vehicle sales will have a status of sold, and all the sale information is posted automatically to the Sale tab of the vehicle record.
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The result is the stock figure on the balance sheet is reduced and the cost of sale on the profit and loss is increased. The unit in the unit sales will have a status of sold, and all the sale information is posted automatically to the Sale tab of the unit record.
  
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=== Operations - Used Vehicles ===
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=== Operations - Used Units ===
 
==== Non Part Exchange Purchases ====
 
==== Non Part Exchange Purchases ====
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*Create the vehicle record and enter all the necessary details, including the vehicle purchase information.
+
*Create the unit record and enter all the necessary details, including the unit purchase information.
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*Update the Purchase tab of the vehicle stock record with the following fields:-
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*Update the Purchase tab of the unit stock record with the following fields:-
 
** {{DataValue|Supplier}}
 
** {{DataValue|Supplier}}
 
** {{DataValue|Purchase Amount}}
 
** {{DataValue|Purchase Amount}}
 
** {{DataValue|Finance Balance}} (if there is one)
 
** {{DataValue|Finance Balance}} (if there is one)
  
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*Enter the amount you are paying for the vehicle into the purchase amount and press {{KeyPress|F2}} to produce the invoice  (if not done by the accounts department).
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*Enter the amount you are paying for the unit into the purchase amount and press {{KeyPress|F2}} to produce the invoice  (if not done by the accounts department).
  
 
==== Part Exchange Purchases ====
 
==== Part Exchange Purchases ====
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*Part Exchanges should be created from the vehicle sales order and not purchased manually.
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*Part Exchanges should be created from the unit sales order and not purchased manually.
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**They are not purchased into stock, from the accounts point of view, until the sale vehicle has been invoiced.
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**They are not purchased into stock, from the accounts point of view, until the sale unit has been invoiced.
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**The credit account will be the "Default Vehicle Purchase" or {{DataValue|VEH001}}.
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**The credit account will be the "Default Unit Purchase" or {{DataValue|VEH001}}.
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**If the part exchange is left with you to sell prior to the new vehicle deal being invoiced, then it is sensible to treat the part exchange as though it were a simple purchase and post a purchase payment to {{DataValue|Z970}} and add a deposit for the nett part-exchange to the sales order, to {{DataValue|Z970}}.
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**If the part exchange is left with you to sell prior to the new unit deal being invoiced, then it is sensible to treat the part exchange as though it were a simple purchase and post a purchase payment to {{DataValue|Z970}} and add a deposit for the nett part-exchange to the sales order, to {{DataValue|Z970}}.
  
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==== When the Vehicle is sold ====
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==== When the Unit is sold ====
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*Invoice the vehicle through the vehicle sales, sales ordering/invoice routine.
+
*Invoice the unit through the unit sales, sales ordering/invoice routine.
−
*At the month end work out the cost of the vehicles sold and post a journal for this cost from the balance sheet across to the Profit and Loss, Cost of Sales.
+
*At the month end work out the cost of the units sold and post a journal for this cost from the balance sheet across to the Profit and Loss, Cost of Sales.
  
−
The result is the stock figure on the balance sheet is reduced and the cost of sale on the profit and loss is increased. The vehicle in the vehicle sales will have a status of sold, and all the sale information is posted automatically to the Sale tab on the vehicle.
+
The result is the stock figure on the balance sheet is reduced and the cost of sale on the profit and loss is increased. The unit in the unit sales will have a status of sold, and all the sale information is posted automatically to the Sale tab on the unit.
  
 
=== At the Month End ===
 
=== At the Month End ===
 
==== Agreeing the Nett Sales on the Profit & Loss ====
 
==== Agreeing the Nett Sales on the Profit & Loss ====
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*Run the "Vehicle Sales & Cost of Sales" for the month you are closing off.
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*Run the "Unit Sales & Cost of Sales" for the month you are closing off.
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*Check the total of new & used vehicles agrees to the new and used sales on the profit and loss. Use the {{Menu|Nominal Review}} to compare stock numbers
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*Check the total of new & used units agrees to the new and used sales on the profit and loss. Use the {{Menu|Nominal Review}} to compare stock numbers
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{{Note|text=Remember when you invoice a vehicle this is posting the sale onto the profit and loss for you, so we are only checking that these have been posted correctly. If they don't agree, you must print a nominal ledger centre history report for centre and tick off the entries against this report to work out where the difference lies.}}
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{{Note|text=Remember when you invoice a unit this is posting the sale onto the profit and loss for you, so we are only checking that these have been posted correctly. If they don't agree, you must print a nominal ledger centre history report for centre and tick off the entries against this report to work out where the difference lies.}}
  
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==== Posting the Cost of Sale Journal - New Vehicles ====
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==== Posting the Cost of Sale Journal - New Units ====
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*Using the "Vehicle Sales & Cost of Sales" for the month you are closing off, journal the total cost of new vehicles sold from the balance sheet centre for the stock of new vehicles to the profit and loss centre for the cost of sales of new vehicles.
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*Using the "Unit Sales & Cost of Sales" for the month you are closing off, journal the total cost of new units sold from the balance sheet centre for the stock of new units to the profit and loss centre for the cost of sales of new units.
  
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=== Posting the Cost of Sale Journal - Used Vehicles ===
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=== Posting the Cost of Sale Journal - Used Units ===
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*Using the "Vehicle Sales & Cost of Sales" for the month you are closing off, journal the total cost of used vehicles sold from the balance sheet centre for the stock of used vehicles to the profit and loss centre for the cost of sales of used vehicles.
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*Using the "Unit Sales & Cost of Sales" for the month you are closing off, journal the total cost of used units sold from the balance sheet centre for the stock of used units to the profit and loss centre for the cost of sales of used units.
  
 
==== Reconciling the Stock Figure on the Balance Sheet ====
 
==== Reconciling the Stock Figure on the Balance Sheet ====
 
  Opening Stock + Purchases - Cost of Sales = Closing Stock
 
  Opening Stock + Purchases - Cost of Sales = Closing Stock
  
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#Run the {{Menu|Vehicle Valuation at a Date}} for the end of last month.
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#Run the {{Menu|Unit Valuation at a Date}} for the end of last month.
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#Run the {{Menu|Vehicle Purchases}} for the current month.
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#Run the {{Menu|Unit Purchases}} for the current month.
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#Run the {{Menu|Vehicle Sales and Cost of Sales}} for the current month.
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#Run the {{Menu|Unit Sales and Cost of Sales}} for the current month.
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#Run the {{Menu|Vehicle Valuation at a Date}} for the end of the current month.
+
#Run the {{Menu|Unit Valuation at a Date}} for the end of the current month.
  
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{{Note|text=Check the stock figure on the balance sheet agrees to vehicle valuation at the end of last month. If they don't, you need to work out the differences and either correct the balance sheet or correct the offending vehicles in vehicle sales.}}
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{{Note|text=Check the stock figure on the balance sheet agrees to unit valuation at the end of last month. If they don't, you need to work out the differences and either correct the balance sheet or correct the offending units in unit sales.}}
  
 
You must have an agreed starting point.
 
You must have an agreed starting point.
  
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Using Option 1 take the stock value at the end of last month and then add Option 2 Vehicle Purchased, deduct Option 3 Cost of Vehicles sold and the result should agree to Option 4, the stock value at the end of the month
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Using Option 1 take the stock value at the end of last month and then add Option 2 Unit Purchased, deduct Option 3 Cost of Units sold and the result should agree to Option 4, the stock value at the end of the month
  
 
== See also ==
 
== See also ==

Revision as of 17:07, 16 January 2019

Summary

This article explains how Platinum integrates your Unit Sales to your Nominal Ledger.

Please note: If your system is using the Automatic Cost of Sales facility you do not need to post the journals described below. The system will post journals between Stock Value and Unit Accruals as each unit is created. When sold the system will post a journal between Stock Value and Cost of Sales. The Debit entry to Unit Accruals is created when you post the supplier invoice to the Purchase Ledger or when printing a purchase invoice for a Used/Part Exchange Unit. If you are unsure which method your system is using please Contact your Platinum dealer or our support team on 0116 230 1500 or by using our website support contact page.

More Information

Units: Unit is a general term used to cover all types of vehicle and machinery, including items such as motorcycles, scooters, cars, trucks, vans, caravans, motorhomes, boats, tractors, ATVs, agricultural equipment, wholegoods and construction equipment.

At the end of each month we need to achieve two things, from an accounts point of view: -

  1. The profit and loss to show the sale and cost of units sold at the end of the month.
  2. The balance sheet to show the value of unit stock at the end of the month.

To achieve this we use a combination of unit report generator reports and journal entries.

Operations - New Units

When the unit is delivered

  • Create the unit record and enter all the necessary details, including the unit purchase credentials.
  • Update the Purchase tab of the unit stock record with the following fields:-
    • 'Supplier'
    • 'Purchase Date'
    • 'Invoice Number'
    • 'Payment Due'
    • 'Purchase Amount'
    • 'Delivery Charge'
    • 'VAT'
  • Post the purchase invoice into the purchase ledger using Purchase Ledger Postings, splitting the delivery costs accordingly.
  • If you haven't received the invoice or you have no financial details of the unit you are entering into stock, create the unit and these areas will be posted into the accounts when it arrives and you will need to update/check the purchase detailed on the unit record matches the invoice.

When the Unit is sold

  • Invoice the unit through the unit sales, sales ordering/invoice routine.
  • At the month end work out the cost of the unit sold and post a journal for this cost from the balance sheet across to the Profit and Loss, Cost of Sales.

The result is the stock figure on the balance sheet is reduced and the cost of sale on the profit and loss is increased. The unit in the unit sales will have a status of sold, and all the sale information is posted automatically to the Sale tab of the unit record.

Operations - Used Units

Non Part Exchange Purchases

  • Create the unit record and enter all the necessary details, including the unit purchase information.
  • Update the Purchase tab of the unit stock record with the following fields:-
    • 'Supplier'
    • 'Purchase Amount'
    • 'Finance Balance' (if there is one)
  • Enter the amount you are paying for the unit into the purchase amount and press <F2> to produce the invoice (if not done by the accounts department).

Part Exchange Purchases

  • Part Exchanges should be created from the unit sales order and not purchased manually.
    • They are not purchased into stock, from the accounts point of view, until the sale unit has been invoiced.
    • The credit account will be the "Default Unit Purchase" or 'VEH001'.
    • If the part exchange is left with you to sell prior to the new unit deal being invoiced, then it is sensible to treat the part exchange as though it were a simple purchase and post a purchase payment to 'Z970' and add a deposit for the nett part-exchange to the sales order, to 'Z970'.

When the Unit is sold

  • Invoice the unit through the unit sales, sales ordering/invoice routine.
  • At the month end work out the cost of the units sold and post a journal for this cost from the balance sheet across to the Profit and Loss, Cost of Sales.

The result is the stock figure on the balance sheet is reduced and the cost of sale on the profit and loss is increased. The unit in the unit sales will have a status of sold, and all the sale information is posted automatically to the Sale tab on the unit.

At the Month End

Agreeing the Nett Sales on the Profit & Loss

  • Run the "Unit Sales & Cost of Sales" for the month you are closing off.
  • Check the total of new & used units agrees to the new and used sales on the profit and loss. Use the " Nominal Review" to compare stock numbers
Remember when you invoice a unit this is posting the sale onto the profit and loss for you, so we are only checking that these have been posted correctly. If they don't agree, you must print a nominal ledger centre history report for centre and tick off the entries against this report to work out where the difference lies.

Posting the Cost of Sale Journal - New Units

  • Using the "Unit Sales & Cost of Sales" for the month you are closing off, journal the total cost of new units sold from the balance sheet centre for the stock of new units to the profit and loss centre for the cost of sales of new units.

Posting the Cost of Sale Journal - Used Units

  • Using the "Unit Sales & Cost of Sales" for the month you are closing off, journal the total cost of used units sold from the balance sheet centre for the stock of used units to the profit and loss centre for the cost of sales of used units.

Reconciling the Stock Figure on the Balance Sheet

Opening Stock + Purchases - Cost of Sales = Closing Stock
  1. Run the " Unit Valuation at a Date" for the end of last month.
  2. Run the " Unit Purchases" for the current month.
  3. Run the " Unit Sales and Cost of Sales" for the current month.
  4. Run the " Unit Valuation at a Date" for the end of the current month.
Check the stock figure on the balance sheet agrees to unit valuation at the end of last month. If they don't, you need to work out the differences and either correct the balance sheet or correct the offending units in unit sales.

You must have an agreed starting point.

Using Option 1 take the stock value at the end of last month and then add Option 2 Unit Purchased, deduct Option 3 Cost of Units sold and the result should agree to Option 4, the stock value at the end of the month

See also


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Keywords AND Misspellings
unit, vehicle, wholegood, caravan, agricultural machine, tractor, trailer, car, suv, motorcycle, motorbike, scooter, truck, van, lorry, motorhome, quad, atv, boat, tricycle, quadricycle, bicycle, bike, plant, vehicle reconciliation, month end, cost of sales cost, sales, integration, inter, nominal
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