DOCUMENTATION

The MASTER LEDGER is the core management tool for accounting and data. Set up your Chart of Accounts (COA) and lookups (e.g. employee data, vendor and customer data, product names, departments, project data, etc.) within the MASTER LEDGER, and then export the lookups to NEXUS, HORIZON, and the supplementary INDIRECT CALCULATOR and INVENTORY MANAGER. To protect the detailed data (e.g. salaries and other personal information) contained within the MASTER LEDGER, the MASTER LEDGER should not be shared outside your organization. Instead, NEXUS (for reporting) and HORIZON (for forecasting) are designed to only import lookup names and transactions and therefore can more easily be shared with stakeholders outside the organization.

FULL TRANSACTIONS LIST

EXPENSES

Operating or Direct Cost Expense
Expense Accrual (Pending Invoice)
Prepaid Expense (Short-Term)
Transition of Short-Term Prepaid Expense to Actual Expense
Prepaid Expense (Long-Term)
Transition of Long-Term Prepaid Expense to Short-Term Prepaid Expense
Lease Expense with Deferred Payment
Estimate for Income Tax Refund
Reimbursable Expense Claim
In-Kind Contributions – Expenses (Core Revenue)
Gifts-in-Kind – Contribution Expense (Other Income)
Refundable Purchase Deposit
Loss on Forfeited Deposit (Other Expense)
Irrecoverable VAT as Expense
Irrecoverable GST as Expense
Allowance for Doubtful Accounts for Estimated Bad Debt Expense
Accounts Receivable Write-Off from Allowance for Doubtful Accounts
Recovery or Refund of Prior Year Expense

SALES

Inventory Sales Revenue
Non-Inventory Sales Revenue
Free Service Promotion
Inventory Sales Return
Non-Inventory Sales Return
Refundable Customer Advance Deposit
Accrued (Not yet Invoiced) Inventory Sales Revenue
Accrued (Not yet Invoiced) Non-Inventory Sales Revenue
Prepaid (Unearned) Revenue
Transition of Prepaid (Unearned) Revenue to Actual Inventory Sales Revenue
Transition of Prepaid (Unearned) Revenue to Actual Non-Inventory Sales Revenue

INDIRECT REVENUE

PAYROLL & WAGES

Fixed Amount Wages
Hourly Wages

INVENTORY & ASSETS

Asset or Inventory Purchase
Depreciation or Amortization of Asset
Sale or Disposal of Asset
Transition of Short-Term Prepaid to Actual Asset or Inventory
Work-in-Process Inventory from Raw Materials Inventory
Finished Product Inventory from Raw Materials Inventory
Finished Product Inventory from Work-in-Process Inventory
Write-Off of Raw Materials Inventory
Write-Off of Work-in-Process Inventory
Write-Off of Finished Product Inventory
Free Inventory Promotion Expense
Inventory Program Expense (Core Expense)
In-Kind Contribution – Inventory (Core Revenue)
In-Kind Contribution – Assets (Core Revenue)
Inventory Donation Expense (Other Expense)
Gifts-in-Kind – Inventory (Other Income)
Asset Donation Expense (Other Expense)
Gifts-in-Kind – Assets (Other Income)

LOANS

Short-Term (ST) Loan Payable
Principal and Interest Expense on ST Loan Payable
Long-Term (LT) Loan Payable
Transition LT Loan Payable to Current Portion of LT Loan Payable
Principal and Interest Expense on Current Portion of LT Loan Payable
Short-Term (ST) Loan from Company (Receivable)
Principal and Interest Income on ST Loan Receivable
Long-Term (LT) Loan from Company (Receivable)
Transition LT Loan Receivable to Current Portion of LT Loan Receivable
Principal and Interest Income on Current Portion of LT Loan Receivable
Write-Off ST Loan from Company (Receivable) as Bad Debt Expense
Write-Off Current Portion of LT Loan Receivable as Bad Debt Expense
Write-Off LT Loan from Company (Receivable) as Bad Debt Expense

EQUITY (NON-STOCK)

Equity Contribution from Owner
Equity Contribution from Partner
Equity Contribution from Member
Owner’s Draw
Partner’s Draw
Member’s Draw
Clearance of Owner’s Draw and Reduction of Profit from Retained Earnings
Clearance of Partner’s Draw and Reduction of Profit from Retained Earnings
Clearance of Member’s Draw and Reduction of Profit from Retained Earnings
Clearance of Owner’s Draw and Reduction of Owner’s Equity
Clearance of Partner’s Draw and Reduction of Partner’s Equity
Clearance of Member’s Draw and Reduction of Member’s Capital Account

EQUITY (STOCK)

Restricted Stock as Stock-Based Compensation
Stock Options as Stock-Based Compensation
Common Stock as Stock-Based Compensation
Common Stock Conversion from Restricted Stock
Common Stock Conversion from Exercised Stock Options
Common Stock Sale for Cash
Preferred Stock Sale for Cash
SAFE Note Sale for Cash
Preferred Stock Conversion from SAFE Notes
Preferred Stock Conversion from Short-Term Convertible Notes
Preferred Stock Conversion from Long-Term Convertible Notes
Preferred Stock Conversion from Accrued Interest on Convertible Notes
Treasury Stock from Repurchase of Common Stock
Cash from Sale of Treasury Stock
Cash Dividends Payable

BANK

Cash Outflow for Payment from Accounts Payable List
Cash Outflow for Payment of Employee Cash Advance
Cash Outflow from Cash Donation Expense (Other Expense)
Cash Inflow from Accounts Receivable Payment
Cash Inflow from Reimbursement of Deposits Receivable
Cash Inflow from Cash Contribution (Core Revenue)
Cash Inflow from Cash Gift (Other Income)
Cash Inflow from Reimbursement of Input VAT
Cash Inflow from Reimbursement of GST Input Tax Credit
Cash Inflow from Reimbursement of Income Tax Receivable

GENERAL

Error Check Columns

Debit Total – Sums the debit amounts in columns Debit1 through Debit13. Used as part of Completion Check.

Credit Total – Sums the credit amounts in columns Credit1 through Credit13. Used as part of Completion Check.

Completion Check – Checks for completion of a started transaction entry (a transaction that has a selected Action and Action Type, and a Debit Total or Credit Total not equal to 0). Transactions that are incomplete are excluded from a Refresh All upload until the flagged errors are resolved. The most common completion checks include:

Whether the Debit Total equals Credit Total.

If there is an inbalance, the column displays the message “ERROR – Check Debit-Credit Balance” on the corresponding row and the total ERROR COUNT increases. To troubleshoot, refer to the green Column Input Requirements column and confirm the relevant columns have values if required, and the signs of the input amounts are correct. For example, if the requirement is just B, then the amount in B should be positive. If the requirement is (B), then the amount in B should be negative.

Whether a Default Account has been selected from Dropdown A, if applicable.

If the Action requires a selection from Dropdown A and no viable selection has been made, then the transaction is missing a default account and will display the message “ERROR – Select from Dropdown A”.

Whether a Default Account has been selected from Product ID Name, if applicable.

If the Action requires a selection from Product ID Name and no viable selection has been made, then the transaction is missing a default account and will display the message “ERROR – Select from Product ID Name”.

Whether the Transaction Date has been input.

If the Transaction Date is missing, then the transaction will fail to upload and the message “ERROR – Missing Transaction Date” will display.

Input Sign Check – Checks that the input amounts for the relevant columns of each transaction have the expected sign (positive or negative), so that the debit and credit columns all have absolute value (positive) amounts. If there is no issue, the column remains blank. If there is an issue, the column displays the message “ERROR – Check Input Signage” on the corresponding row and the total ERROR COUNT increases. To troubleshoot, refer to the green Column Input Requirements column and confirm the signs of the input amounts are correct. For example, if the requirement is just B, then the amount in B should be positive. If the requirement is (B), then the amount in B should be negative.

Duplicate Check – Checks that all entries in the module’s table have unique SJ Ref (Source Journal Reference) labels. In accounting, transactions should all have unique journal reference labels so that a specific transaction can be referenced when needed. If there is no issue, the column remains blank. If there is an issue, the column displays the message “ERROR – Duplicate Ref #” on the corresponding row (when SJ Ref has a duplicate) or “ERROR – Check Action” (when SJ Ref shows an error due to an ineligible Action) and the total ERROR COUNT increases.

SJ Ref (Source Journal Reference) – Automated. Combination of Source Journal and Journal Reference #.

Source Journal – Automated. Code is based on the accounting module and selected Action. Reverse/Adjust Action Type is denoted with a “-R”.

Accounting Module	Source Journal Code	Description
Bank	CD	Cash disbursements (outflow) entries
Bank	CR	Cash receipts (inflow) entries
Sales	SJ	Sales and revenue entries
Indirect Revenue	SJI	Indirect cost recovery revenue entries
Expenses	AP	Payable expense entries
Payroll & Wages	PR	Payroll check entries
Inventory & Assets	FA	Fixed asset entries
Inventory & Assets	PO	Inventory purchase order entries
Loans	GJL	Loan entries
Equity (Stock)	GJS	Stock-related equity entries
Equity (Non-Stock)	GJE	Non-stock equity entries

Journal Reference # – Automated. Sets a unique number, in chronological order, for entries with the same Source Journal starting from the manual Input Starting Ref #.

Required Setup Inputs

Input Starting Ref # – Required input. In each accounting module, input a numerical starting number to use as the Journal Reference # for each applicable Source Journal type in the accounting module in the gold cells above the Journal Reference # column.

The purpose of inputting a starting reference number other than 0 (default) is to allow appending (adding or stacking) transactions from different MASTER LEDGER workbooks into NEXUS. This can occur if the transactions exceed the allotted number of rows in the accounting modules of one MASTER LEDGER workbook, if a company chooses to split transactions into different MASTER LEDGER workbooks by year/quarter/month, or if a company receives accounting inputs from more than one user or source. As every transaction requires a unique SJ Ref, the SJ Ref should not overlap with any transactions appended from other sources. Manually determining the Starting Ref # for a particular MASTER LEDGER workbook’s accounting module allows handling Journal Reference #’s before the transactions are submitted and ready for export in Export Actuals. For example, if the last SJ Ref for the ‘CD’ Source Journal is CD1005 in NEXUS and a new MASTER LEDGER export needs to be appended (added to the full list of transactions in NEXUS), the new MASTER LEDGER ‘CD’ Starting Ref # can be 1006 or higher to avoid overlap.

Transaction Date – Required input. Input the calendar date in which the transaction is being recorded. Multiple transactions can be recorded on the same date as long as each has its own unique SJ Ref.

Select Action Type – Required selection. To add a regular transaction entry, use the yellow dropdown menu to select Add/New. If adjusting or reversing a previous transaction, such as correcting a previous transaction or reversing an accrual entry, select Reverse/Adjust. The amount columns for Reverse/Adjust entries usually carry the opposite sign. The transaction is considered not started if no Action Type is selected.

Select Action from Dropdown – Required selection. Use the yellow dropdown menu to select an available action. Determines the purpose of the transaction and sets up the corresponding Column Input Requirements and related double-entry accounts. Different expense management modules have different transaction options. Check the Table of Contents at the beginning of this document to see all transaction options within each accounting module. Do not overwrite with a false action or else the row will not be processed for upload. The transaction is considered not started if no Action is selected.

Transaction Description – Required input. Add a short description that describes the purpose of the transaction to anyone reviewing reports. Shorter descriptions (less than 30 characters) appear better on reports.

Optional Setup Columns

Product ID Name – Optional selection. If relevant, select a product or service to attribute the transaction to. Allows for reviewing reports filtered by product or service. Set up products or services on the Product & Inventory Lookup tab.

Project ID Name – Optional selection. If relevant, select a project or contract to attribute the transaction to. Allows for reviewing reports filtered by project or contract. Set up projects or contracts on the Project Lookup tab.

Department ID Name – Optional selection. If relevant, select an internal department to attribute the transaction to. Allows for reviewing reports filtered by department. Set up departments on the Department Lookup tab.

Contact ID Name – Optional selection. If relevant, select a contact (such as an employee, consultant, vendor, customer or other) to attribute the transaction to. Different expense management modules tie to different contact lists based on relevance (Sales looks up contacts from Customer Lookup; Expenses looks up contacts from Vendor Lookup; Inventory & Assets looks up contacts from Vendor Lookup; Payroll & Wages looks up contacts from Employee & Consultant Lookup; Equity (Non-Stock) and Equity (Stock) look up contacts from Employee & Consultant Lookup tab. Allows for reviewing reports filtered by contact name. Set up contacts in the lookup tabs Employee & Consultant Lookup, Vendor Lookup, and Customer Lookup.

Tracking Reference 1 – Optional input. Add another custom label or category to help filter for related transactions when reviewing reports. First of two custom tracking description columns. Tip: Group similar/identical labels for different transactions under the same Tracking Reference column to help with filtering. For example, if location was added to a sale transaction under Tracking Reference 1, then continue to add location data to Tracking Reference 1 instead of Tracking Reference 2, so that reports can be filtered for location under Tracking Reference 1 only.

Tracking Reference 2 – Optional input. Add another custom label or category to help filter for related transactions when reviewing reports. Second of two custom tracking description columns. Tip: Group similar/identical labels for different transactions under the same Tracking Reference column to help with filtering. For example, if color was added to an inventory transaction under Tracking Reference 2, then continue to add color data to Tracking Reference 2 instead of Tracking Reference 1, so that reports can be filtered for color under Tracking Reference 2 only.

Invoice ID – Optional input. Input an Invoice ID that relates to the transaction or group of transactions, usually for a sales invoice or a vendor invoice. Multiple transactions can relate to the same Invoice ID, such as original transaction, corrections or refunds, and follow-up bank payments. Required for proper reviewing reports filtered by that invoice, including whether the invoice payment is outstanding or cleared.

Invoice Date – Optional input. Input the date of the invoice, usually the date of a vendor’s invoice or the date of a sales invoice. Used to help determine the Invoice Due Date based on a vendor’s or customer’s payment terms, which are set up in Vendor Lookup and Customer Lookup.

Invoice Clearance Date – Optional input on the Bank accounting module. Input the date in which the invoice has been handled (in part or in full). Helpful for tracking payment status on account payables and account receivables.

Automated Setup Columns

Payment Terms – Automated. Based on the payment terms (in days) set up on the lookup tabs Vendor Lookup, Customer Lookup, and Employee & Consultant Lookup. Determines the expected Invoice Due Date, calculated as the Payment Terms days as of the Invoice Date.

Invoice Due Date – Automated. Calculated from the number of Payment Terms days after the Invoice Date.

Concatenated Action – Automated. Combination of Select Action Type and Select Action from Dropdown. Determines the purpose of the transaction and sets up the corresponding Column Input Requirements and related double-entry accounts.

Column Input Requirements – Automated. Very important reference column that guides users on which dropdown selection and amount columns (usually denoted with letters) are required to complete the transaction. Letters without parenthesis typically denote columns requiring positive input amounts, while letters wrapped in parenthesis ( ) usually denote columns requiring negative input amounts. For example, G is a positive input amount while (G) is a negative input amount. Checks, if applicable, are automated and should be used as guides for balancing totals. For example, if A + B = Check 1 = C + D, then if A + B = 45, then Check 1 should automatically calculate 45, and the sum of amounts input into C and D should also equal 45 to balance the equation. Occasionally, there may be a scenario where the input may be either positive or negative and is wrapped with braces { }, though these are uncommon.

Default Account – Automated. Determined either by nature of the Select Action from Dropdown or by the selection made in Dropdown A, if applicable. Is usually related to the amount input into a Default Account Value column. For example, if an expense transaction is being recorded and the Default Account is Meals (selected from Dropdown A), then the amount in Default Account Value would be the amount to record for the Meals expense.

ACCOUNT SETUP

Chart of Accounts

Purpose

The MASTER LEDGER’s Chart of Accounts (COA) manages the list of income statement and balance sheet accounts for all accounting modules, including the account options in various account dropdown menus. These accounts are also included in the Export Full Lookup and Export Lookup to Nexus , which can then be copied and pasted into the ‘Import Lookup’ tabs in NEXUS, HORIZON, and other Finpact Solutions products including the supplementary INDIRECT CALCULATOR and INVENTORY MANAGER.

The majority of the COA accounts are fixed to preserve the integrity of accounting relationships. However, space for custom accounts has been provided for users to add additional accounts specific to their business or to help differentiate specific expense categories further.

Custom Accounts

Allocated custom account spaces are seen with white cell backgrounds and blue text. Users are encouraged to use some or all of these allotted custom account spaces, overwriting the default names with preferred names. The custom accounts cover the following areas:

- - - Revenue – 10 custom revenue accounts for recording revenue under unique revenue streams.
    - Indirect Revenue – 10 indirect cost recovery revenue accounts specific to businesses that are reimbursed some or all of their indirect operating expenses via billable direct costs. See the INDIRECT CALCULATOR for more information.
    - Labor – Billable – 8 additional custom billable labor accounts aside from the default Billable Salaries and Wages and Billable Consultants accounts. The payable account defaults to Accounts Payable.
    - Direct Cost Expense – 10 custom direct cost of sales accounts to capture unique expenses specific to generating revenue.
    - Labor – Indirect – 8 additional custom indirect labor accounts aside from the default Salaries and Wages and Consultants accounts. The payable account defaults to Wages Payable.
    - Operating Expense – 10 custom indirect operating cost accounts to capture unique operating expenses to the business.

Transactions List

Purpose

A reference-only table that shows a list of all available Actions across the accounting modules. Users are welcome to filter by accounting Module, Key Words, or SelectedActions and see the associated double entry accounting logic under the accounts, debits and credits.

DATA MIGRATION

The MASTER LEDGER serves as the central hub for your business’s Chart of Accounts (particularly the custom accounts) and metadata for your departments, employees, vendors, clients, projects and products. The key information (particularly accounts and lookup IDs) is exported from your MASTER LEDGER and imported into NEXUS, HORIZON and other supplementary products in the ‘Import Lookup’ tabs. The MASTER LEDGER also generates a table of updated accounting actual transactions that can be exported to NEXUS.

Export Actuals

Purpose

The Export Actuals tab shows the results of any successfully submitted accounting transactions in the active MASTER LEDGER workbook. Users can copy (Ctrl + C) the row content and paste values (Ctrl + Shift + V) into the 2 – Import Actuals tab of NEXUS to view the updated actuals in the financial statements, or into the INDIRECT CALCULATOR.

How to Submit Updated Transactions

When all new transactions have been added to the accounting modules and any account name or lookup name updates have been made (keeping the account IDs and lookup IDs the same for consistency), the user can submit the transactions by performing a Refresh All. Navigate to the Data tab on the top Excel ribbon, then under Queries & Connections group, select Refresh All.

Friendly Reminder: Close all other Excel files prior to refreshing.

Refresh All will default to performing a Power Query refresh on ALL open Excel files, which can use up a lot of computing power and will prevent users from utilizing Excel during the time required for the files to finish refreshing. Expected refresh time for MASTER LEDGER workbooks files without errors is generally less than one minute unless there is an issue preventing a successful refresh. For unexpectedly long refresh times, contact Finpact Solutions Product Support for troubleshoot support.

Common Reasons for Submission Failures or Excluded Transactions

Successfully added transactions usually take less than a minute to submit via a Refresh All. However, there may be times that the Refresh All fails to bring in all expected updates. When troubleshooting, check the list below of the most common reasons for refresh errors or missing transactions.

From Accounting Modules:

- - Missing Transaction Date – Upload will skip transactions without Transaction Date.
  - Missing Action Type – Prevents the row from recognizing the column inputs required.
  - Missing Action – Prevents the row from recognizing the column inputs required.
  - Missing Required Inputs – The columns requiring inputs (based on the green Column Input Requirements) are incomplete, causing gaps in required amounts.
  - Incorrect Sign of Inputs – The signage of the columns requiring inputs (based on the green Column Input Requirements) are inconsistent, causing unexpected negative amounts to enter the automated Debit and Credit accounts.
  - Unbalanced Double Entry Inputs – The totals and checks are not in balance, leading to a Debit and Credit total that are not equal, which is a requirement in double entry accounting.
  - Duplicate Ref # – A duplicate SJ Ref was detected in the same MASTER LEDGER workbook, which would cause reporting errors.
  - Invalid Data Type – The manual input type does not match the expected format of the column, such as inputting a date in a column that expects whole numbers for quantity, or text in a numerical amount column.

From Lookup Modules:

- - Missing ID – Causes reporting errors and is excluded from ID dropdown lists.
  - Missing Name – Causes reporting errors and is excluded from ID dropdown lists.
  - Duplicate ID – Causes reporting errors and is excluded from ID dropdown lists.

Export Full Lookup

Purpose

The Export Full Lookup tab shows updated account names and lookup IDs from the MASTER LEDGER’s Chart Of Accounts and various lookup tabs. Users should copy all 500 rows of content (Ctrl + C) and paste values (Ctrl + Shift + V) into the ‘Import Lookup’ tabs in HORIZON or the INDIRECT CALCULATOR.

While account names and lookup names can change, the best practice is to keep the account IDs and lookup IDs consistent across all Finpact Solutions products to avoid reporting errors from invalid IDs. For example, a department that is formerly D2000 – Marketing ABC (Department ID = ‘D2000’, Department Name = ‘Marketing ABC’) may change its name to ‘Marketing XYZ’ but should maintain the Department ID ‘D2000’ to keep transaction data aligned between D2000 – Marketing ABC and D2000 – Marketing XYZ.

Export Lookup to Nexus

Purpose

The Export Lookup to Nexus table shows a truncated list of updated custom account names and lookup IDs from the MASTER LEDGER’s Chart of Accounts and various lookup tabs. Users should copy all 500 rows of content (Ctrl + C) and paste values (Ctrl + Shift + V) into the 1 – Import Lookup tab in NEXUS.

While account names and lookup names can change, the best practice is to keep the account IDs and lookup IDs consistent across all Finpact Solutions products to avoid reporting errors from invalid IDs. For example, a department that is formerly D2000 – Marketing ABC (Department ID = ‘D2000’, Department Name = ‘Marketing ABC’) may change its name to ‘Marketing XYZ’ but should maintain the Department ID ‘D2000’ to keep reporting data aligned between D2000 – Marketing ABC and D2000 – Marketing XYZ.

To help anonymize employee, vendor and customer names when sharing reports, the Export Lookup to Nexus table uses IDs instead of Names to help keep Customer Name anonymous when adding to or filtering in NEXUS reports.

LOOKUP MANAGEMENT

Employee & Consultant Lookup

Purpose

Lookup table module for registering employees and consultants, which will appear as options in employee-related dropdowns in various accounting modules or forecasting models. The entries in this Lookup are particularly relevant to working with the Timesheet Calculator and adding wage amounts in the Payroll & Wages accounting module.

Active Status Date

The active status date, which either reflects the current date (of when the MASTER LEDGER is open) or based on a manual user input date, determines whether any of the employee or consultant entries have expired as shown in the automated Active/Inactive column. Inactive entries impact which full-time employees flow to the Timesheet Calculator’s Automated Fixed Amount Entries Table and show errors for inactive staff in the Manual Hourly Labor Entries Table.

The ‘As of Manual Payroll Date’ user input (in yellow) is more likely used if preparing payroll entries as of a past date. Leave blank to use the ‘Active Status as of Today’s Date’ automated date instead for active status calculations.

Required Columns

Select Customer Type – Select ‘Employee’ or ‘Consultant’ from the yellow dropdown cells, which help set the ‘E’ or ‘C’ designations in Contact ID Name.

Default Product – Use the yellow dropdowns to select a default Product to assign the employee or consultant, if any. The Default Product selected flows into the Timesheet Calculator’s Automated Fixed Amount Entries Table. Set up products on the Product & Inventory Lookup tab.

Default Project – Use the yellow dropdowns to select a default Project to assign the employee or consultant, if any. The Default Project selected flows into the Timesheet Calculator’s Automated Fixed Amount Entries Table. Set up projects on the Project Lookup tab.

Default Department – Use the yellow dropdowns to select a default Department to assign the employee or consultant, if any. The Default Department selected flows into the Timesheet Calculator’s Automated Fixed Amount Entries Table. Set up departments on the Department Lookup tab.

Default Labor Account – Use the yellow dropdowns to select a default labor account (either billable or indirect) to assign the employee or consultant, which is where the full or residual wage amounts are recorded. For example, employees may be mostly an indirect labor cost except for their work on certain billable assignments. The Default Labor Account selected flows into the Timesheet Calculator’s Automated Fixed Amount Entries Table.

Default Pay Type – Select ‘Full-Time (Salaried)’ or ‘Hourly’ from the yellow dropdown cells to designate whether employees operate on fixed wage amounts or their pay varies based on the total number of hours worked. Only active entries designated as ‘Full-Time (Salaried)’ will flow into the Timesheet Calculator’s Automated Fixed Amount Entries Table.

Employee Ref – Input a unique ID for the employee or consultant entry, which can be numeric, lettered or a combination. Avoid using symbols. Best practice is to keep the Refs non-identifying to protect the identity of the employees as the Ref can be added to NEXUS financial reports.

Full Name – Input a name to be used as part of the full Contact ID Name. Also shown on Invoices.

Annual Salary – Input a gross fixed annual wage amount for the employee or consultant, before any additional bonuses or commissions, or withholdings. This amount is divided by 12 in the automated Monthly Salary column.

Monthly Salary – Automated calculation of an even distribution of fixed Annual Salary by month.

Payroll Transactions per Month – Input the number of payroll transactions expected to be recorded each month for the employee or consultant. Ideally this is standardized for all employees based on a payroll rhythm, such as paying wages once a month (‘1’), every two weeks (‘2’), or weekly (‘4’). The Monthly Salary is divided by number in the automated Salary per Payroll Transaction column, which flows into the Timesheet Calculator’s Automated Fixed Amount Entries Table.

Hourly Rate – Input the wage amount earned by the hour for any employees or consultants under the ‘Hourly’ Default Pay Type. This amount flows to the Timesheet Calculator’s Manual Hourly Labor Entries Table. For ‘Full-Time (Salaried)’ employees, this amount is not required as the monthly salary does not change based on the number of hours worked each month.

Start Date – Input the employee or consultant’s employment start date. Determines whether the employee or consultant is ‘ACTIVE’ or ‘INACTIVE’, where ‘ACTIVE’ employees must at least have a start date that is earlier than the date(s) in ‘Active Status as of Today’s Date’ or ‘As of Manual Payroll Date’.

End Date – Input the employee or consultant’s employment termination date, or either leave blank or set an arbitrary distant future date if the employee is still employed. Determines whether the employee or consultant is ‘ACTIVE’ or ‘INACTIVE’, where ‘INACTIVE’ employees have an end date that is earlier than the date(s) in ‘Active Status as of Today’s Date’ or ‘As of Manual Payroll Date’.

Tax Withheld per Payroll Transaction – Input the amount to be deducted by the company from the employee’s income each payroll to be paid directly to the government. Adds to the Payroll Tax Withholdings payable account and reduces the amount payable to the employee. Flows into the Timesheet Calculator’s Automated Fixed Amount Entries Table.

Insurance Benefits Withheld per Payroll Transaction – Input the amount to be deducted by the company from the employee’s income each payroll to be paid to an insurance company. Usually occurs when the employee contributes to the insurance benefits cost, such as health benefit insurance. Adds to the Insurance Benefits Payable account and reduces the amount payable to the employee. Flows into the Timesheet Calculator’s Automated Fixed Amount Entries Table.

Retirement Benefits Withheld per Payroll Transaction – Input the amount to be deducted by the company from the employee’s income each payroll to be paid to a retirement benefits company. Usually occurs when the employee contributes to the retirement benefits cost, such as a 401k plan. Adds to the Insurance Retirement Benefits Payable account and reduces the amount payable to the employee. Flows into the Timesheet Calculator’s Automated Fixed Amount Entries Table.

Other Benefits Withheld per Payroll Transaction – Input the amount to be deducted by the company from the employee’s income each payroll to be paid to some other benefits company that does not fall under insurance benefits or retirement benefits. Adds to the Other Benefits Payable account and reduces the amount payable to the employee. Flows into the Timesheet Calculator’s Automated Fixed Amount Entries Table.

Payment Terms – Input the number of days expected for the wage invoice to be processed after payroll has been recorded. Leave as 00 days if not applicable or not required for tracking. Can be used for tracking payroll invoices.

Automated Columns

Duplicate Check – Automated check column for duplicate Employee Ref, which should be a unique entry for each row. Displays “Duplicate Employee Ref” if a duplicate is detected and requires resolving. Displays “INCOMPLETE” if either Employee Ref or Full Name is partially missing.

Count – Shows the row number for each of the 200 allotted rows.

FT Count – Automated column that determines whether an employee or consultant is both ‘Active’ and ‘Full-Time (Salaried)’ for inclusion in the Timesheet Calculator’s Automated Fixed Amount Entries Table.

Customer ID – Automatically combines the ‘E’ or ‘C’ designations for ‘Employee’ or ‘Consultant’ in Select Customer Type with the Employee Ref.

Contact ID Name – Automatically combines the Customer ID with the Full Name for a unique Contact ID Name.

Active/Inactive – Automated column that determines whether an employee or consultant is considered ACTIVE or INACTIVE by their Start Date and End Date compared to the date(s) in ‘Active Status as of Today’s Date’ or ‘As of Manual Payroll Date’.

Monthly Salary – Automated calculation of an even distribution of fixed Annual Salary by month (dividing by 12 months).

Salary per Payroll Transaction – Automated calculation of the gross wage amount per payroll based on the number of payroll transactions expected per month. Calculated as Monthly Salary divided by Payroll Transactions per Month. Flows into the Timesheet Calculator’s Automated Fixed Amount Entries Table.

Optional Metadata Columns

Additional columns have been provided for capturing metadata about the employees or consultants. These optional and customizable metadata columns (with grey background blue text headers) do not impact any other modules and are intended purely for documenting employee information in one place or filtering employees listed in the lookup by other criteria. Feel free to keep the suggested column headers or customize and repurpose the columns to capture other information about the listed employees.

As many of these metadata columns could contain sensitive Personal Information, the MASTER LEDGER and its Employee & Consultant Lookup should be kept internal to the company.

Available (Customizable) Metadata Columns:

- - - Notes
    - First Name
    - Last Name
    - Bank Name
    - Bank Account Number
    - Email Address 1
    - Email Address 2
    - Phone Number 1
    - Phone Number 2
    - Company Name
    - Address Line 1
    - Address Line 2
    - City
    - Region
    - Zip Code
    - Country
    - Other 1
    - Other 2

Department Lookup

Purpose

Lookup table module for listing your company’s departments or teams, which will appear as options in department-related dropdowns in various accounting modules or forecasting models. Including Department data in transactions allows for filtering and pivoting reports and tables by Department in NEXUS.

Required Columns

Department ID – Input a unique ID for the department, which can be numeric, lettered or a combination. Avoid using symbols.

Department Name – Input a name to be used as part of the full Department ID Name.

Automated Columns

Count – Shows the row number for each of the 50 allotted rows.

Duplicate Check – Automated check column for duplicate Department ID, which should be a unique entry for each row. Displays “Duplicate Department ID” if a duplicate is detected and requires resolving. Displays “INCOMPLETE” if either Department ID or Department Name is partially missing.

Department ID Name – Automatically combines the Department ID with the Department Name for a unique Department ID Name.

Optional Metadata Columns

Additional columns have been provided for capturing suggested or custom metadata about the listed departments. These optional metadata columns (with grey background blue text headers) do not impact any other modules and are intended purely for documenting information in one place or filtering the departments listed in the lookup by other criteria. Feel free to keep the suggested column headers or customize and repurpose the columns to capture other information about the listed departments.

Available (Customizable) Metadata Columns:

- - - Notes
    - Other 1
    - Other 2
    - Other 3
    - Other 4

Vendor Lookup

Purpose

Lookup table module for listing vendors from whom your company receives products or services, which will appear as options in vendor-related dropdowns in various accounting modules. Including vendor data in expense or asset/inventory purchase transactions allows for filtering and pivoting reports and tables by vendor (Contact ID) in NEXUS.

Required Columns

Vendor Ref – Input a unique ID for the vendor, which can be numeric, lettered or a combination. Avoid using symbols. Best practice is to keep the Refs non-identifying to protect the identity of the vendors as the Ref can be added to NEXUS financial reports.

Vendor Full Name – Input a name to be used as part of the full vendor Contact ID Name.

Payment Terms – Input the number of days expected for a vendor invoice to be processed and paid after receipt. Leave as 00 days if not applicable or not required for tracking. Can be used for tracking invoices.

Automated Columns

Count – Shows the row number for each of the 200 allotted rows.

Duplicate Check – Automated check column for duplicate Customer Ref, which should be a unique entry for each row. Displays “Duplicate Customer Ref” if a duplicate is detected and requires resolving. Displays “INCOMPLETE” if either Customer Ref or Vendor Full Name is partially missing.

Customer Type – Defaults to ‘Vendor’ in Vendor Lookup.

Customer ID – Automatically combines the ‘V’ designation for ‘Vendor’ with the Vendor Ref.

Contact ID Name – Automatically combines the Customer ID with the Vendor Full Name for a unique vendor Contact ID Name.

Optional Metadata Columns

Additional columns have been provided for capturing suggested or custom metadata about the listed vendors. These optional metadata columns (with grey background blue text headers) do not impact any other modules and are intended purely for documenting information in one place or filtering the vendors listed in the lookup by other criteria. Feel free to keep the suggested column headers or customize and repurpose the columns to capture other information about the listed vendors.

Available (Customizable) Metadata Columns:

- - - Notes
    - First Name
    - Last Name
    - Bank Name
    - Bank Account Number
    - Email Address 1
    - Email Address 2
    - Phone Number 1
    - Phone Number 2
    - Company Name
    - Address Line 1
    - Address Line 2
    - City
    - Region
    - Zip Code
    - Country
    - Other 1
    - Other 2

Customer Lookup

Purpose

Lookup table module for listing customers or clients to whom your company sells products or provides services, which will appear as options in client-related dropdowns in various accounting or forecasting modules. Including customer data in revenue transactions allows for filtering and pivoting reports and tables by customer (Contact ID) in NEXUS. Customer name and address information also can be brought into the Revenue Invoice Generator and Expense Invoice Generator.

Required Columns

Customer Ref – Input a unique ID for the client or customer, which can be numeric, lettered or a combination. Avoid using symbols. Best practice is to keep the Refs non-identifying to protect the identity of the customer as the Ref can be added to NEXUS financial reports.

Client Invoice Full Name – Input a name to be used as part of the full customer Contact ID Name. This name can be pulled into the invoice generators.

Payment Terms – Input the number of days expected for a customer invoice to be paid after sending. Leave as 00 days if not applicable or not required for tracking. Can be used for tracking invoices.

Invoice Address Line 1 through 5 – Enter invoice address or header information for the client under the Client Invoice Full Name, as you would like the information to be pulled in by line (up to 5 lines) in the Revenue Invoice Generator and Expense Invoice Generator. This could also be physical address only or also include e-mail, phone number for invoice header purposes, etc.

Automated Columns

Count – Shows the row number for each of the 500 allotted rows.

Customer Type – Defaults to ‘Sales Customer’ in Vendor Lookup.

Customer ID – Automatically combines the ‘S’ designation for ‘Sales Customer’ with the Customer Ref.

Contact ID Name – Automatically combines the Customer ID with the Client Invoice Full Name for a unique customer Contact ID Name.

Optional Metadata Columns

Additional columns have been provided for capturing suggested or custom metadata about the listed customers. These optional metadata columns (with grey background blue text headers) do not impact any other modules and are intended purely for documenting information in one place or filtering the customers listed in the lookup by other criteria. Feel free to keep the suggested column headers or customize and repurpose the columns to capture other information about the listed customers.

Available (Customizable) Metadata Columns:

- - - Notes
    - First Name
    - Last Name
    - Bank Name
    - Bank Account Number
    - Email Address 1
    - Email Address 2
    - Phone Number 1
    - Phone Number 2
    - Company Name
    - City
    - Region
    - Zip Code
    - Country
    - Other 1
    - Other 2

Project Lookup

Purpose

Lookup table module for listing projects, which will appear as options in project-related dropdowns in various accounting modules or forecasting models. Including project data in transactions allows for filtering and pivoting reports and tables by Project in NEXUS.

Required Columns

Project ID – Input a unique ID for the project, which can be numeric, lettered or a combination. Avoid using symbols.

Project Name – Input a name to be used as part of the full Project ID Name.

Start Date – Input the start date of the project. Helps determine the Active Status of the project.

End Date – Input the end date of the project. Helps determine the Active Status of the project.

Automated Columns

Count – Shows the row number for each of the 100 allotted rows.

Duplicate Check – Automated check column for duplicate Project ID, which should be a unique entry for each row. Displays “Duplicate Project ID” if a duplicate is detected and requires resolving. Displays “INCOMPLETE” if either Project ID or Project Name is partially missing.

Active Status – Automatically determines whether the project is ‘Not Started’, ‘Active’ or ‘Ended’ based on the Start Date and End Date compared to the current date.

Project ID Name – Automatically combines the Project ID with the Project Name for a unique Project ID Name.

Optional Metadata Columns

Additional columns have been provided for capturing suggested or custom metadata about the listed projects. These optional metadata columns (with grey background blue text headers) do not impact any other modules and are intended purely for documenting information in one place or filtering the projects listed in the lookup by other criteria. Feel free to keep the suggested column headers or customize and repurpose the columns to capture other information about the listed projects.

Available (Customizable) Metadata Columns:

- - - Default Department
    - Project Lifespan
    - Ceiling Value
    - Fee %
    - Fee Amount
    - Indirect Revenue %
    - Indirect Revenue Amount
    - Gross Profit %
    - Gross Profit Amount
    - Tracking Option 1
    - Tracking Option 2
    - Notes

Product & Inventory Lookup

Purpose

Lookup table module for listing products (including finished, working and raw inventory) and services, which will appear as options in product-related dropdowns in various accounting modules or forecasting models. Including product data in transactions allows for filtering and pivoting reports by Product in NEXUS. The supplementary INVENTORY MANAGER assists with tracking value and quantity of products produced or acquired and then sold.

Required Columns

Product Type – Use the yellow dropdown to select a product type. Options include Finished Inventory, Work-in-Process Inventory, Raw Materials Inventory, Service, Subscription, Membership, and Other.

Product ID – Input a unique ID for the product or service, which can be numeric, lettered or a combination. Avoid using symbols.

Product Name – Input a name to be used as part of the full Product ID Name.

Automated Columns

Count – Shows the row number for each of the 100 allotted rows.

Duplicate Check – Automated check column for duplicate Product ID, which should be a unique entry for each row. Displays “Duplicate Product ID” if a duplicate is detected and requires resolving. Displays “INCOMPLETE” if either Product ID or Product Name is partially missing.

Product ID Name – Automatically combines the Product ID with the Product Name for a unique Product ID Name.

Optional Metadata Columns

Additional columns have been provided for capturing suggested or custom metadata about the listed products. These optional metadata columns (with grey background blue text headers) do not impact any other modules and are intended purely for documenting information in one place or filtering the products listed in the lookup by other criteria. Feel free to keep the suggested column headers or customize and repurpose the columns to capture other information about the listed products.

Available (Customizable) Metadata Columns:

- - - Description
    - Quantity Available
    - Tracking Option 1
    - Tracking Option 2
    - Notes

EXPENSES MODULE

Purpose
Accounting module to record direct, billable and operating expenses, prepaid expenses, estimates for tax refunds, gifts-in-kind (other non-cash, non-inventory, non-asset), reimbursable expenses, deferred lease, purchase deposits, allowances for bad debt, and prior year refunds.

Module Columns

• Dropdown A
• B [Default Account Value]
• C [VAT]
• D [GST]
• E [Cash Paid]
• F [Remaining Payable]

Automated Deferred Lease Column
Deferred Lease – Applicable only to the transaction Lease Expense with Deferred Payment, in which the straight-line value of the lease payment does not equal the cash due, such as when there is a free rental period as part of the lease term. The amount of lease deferred during the free/discounted period eventually clears as future payments due are greater than the straight-line value of the lease payments.

——– TRANSACTION SCENARIO OPTIONS FOR SELECTION ——-

Operating or Direct Cost Expense

When to Use – To record an expense, whether indirect (operating and overhead) or direct (cost of sales or billable).

Relevant Columns

• Dropdown A: Required.

Select from the dropdown list of indirect expense accounts (default 6-series accounts) or direct billable expense accounts (default 5-series accounts).

• B [Default Account Value]: Required.

Input the amount of the expense being recorded, not including VAT or GST if registered. If not registered for VAT or GST, the total purchase amount should be recorded for the expense.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• C [VAT]: Required if applicable.

Input the amount of VAT (Value-Added Tax) from the purchase. Can be used to claim credits against VAT collected on sales for VAT-registered businesses.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• D [GST]: Required if applicable.

Input the amount of GST (Goods and Services Tax) from the purchase. Can be used to claim credits against GST collected on sales for GST-registered businesses.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• E [Cash Paid]: Required.

Input the initial amount of cash paid when recording the expense. The remaining amount due becomes a balance on a payable account.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• F [Remaining Payable]: Required.

Input the remaining amount due after any initial cash paid at the time of the expense recording. Adds to the balance on a payable account.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: Dropdown A, B + C + D = Check 1 = E + F = Check 2
• Reverse/Adjust: Dropdown A, (B) + (C) + (D) = Check 1 = (E) + (F) = Check 2

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount.

 For Add/New Action Type:

[Default Account Value] + [VAT] + [GST] = Check 1 [Total Expense] = [Cash Paid] + [Remaining Payable] = Check 2 [Total Payment]

 For Reverse/Adjust Action Type:

[Default Account Value] + [VAT] + [GST] = Check 1 [Total Expense] = [Cash Paid] + [Remaining Payable] = Check 2 [Total Payment]

Expense Accrual (Pending Invoice)

When to Use – To record an expense that has been incurred but the vendor invoice has not yet been issued for official recording. An expense accrual can first be recorded in the period in which the expense occurred so the expense will show on the income statement, then must later be reversed in a future period when the vendor invoice is issued and can be officially recorded with a net zero impact to that future period. If the expense accrual is only an estimate, the impact in that future period may not be a net zero. A common example is income tax expense that is incurred in one fiscal year but often paid in the following fiscal year.

To reverse the accrual and record the actual invoice in that future period, use the Reverse/Adjust action for Expense Accrual (Pending Invoice) to reverse the accrued expense at the same time as recording an Add/New action for Operating or Direct Cost Expense.

Relevant Columns

• Dropdown A: Required.

Select from the dropdown list of indirect expense accounts (default 6-series accounts) or direct billable expense accounts (default 5-series accounts).

• B [Default Account Value]: Required.

Input the amount of the expense being recorded as an accrual while the actual vendor invoice is still pending, not including VAT or GST if registered. If not registered for VAT or GST, the total purchase amount should be recorded for the expense.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• C [VAT]: Required if applicable.

Input the amount of VAT (Value-Added Tax) from the purchase to be accrued. Can be used to claim credits against VAT collected on sales for VAT-registered businesses.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• D [GST]: Required if applicable.

Input the amount of GST (Goods and Services Tax) from the purchase to be accrued. Can be used to claim credits against GST collected on sales for GST-registered businesses.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: Dropdown A, B + C + D = Check 1
• Reverse/Adjust: Dropdown A, (B) + (C) + (D) = Check 1

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount.

 For Add/New Action Type:

[Default Account Value] + [VAT] + [GST] = Check 1 [Total Expense]

 For Reverse/Adjust Action Type:

[Default Account Value] + [VAT] + [GST] = Check 1 [Total Expense]

Prepaid Expense (Short-Term)

When to Use – To record the cash movement for a new short-term (occurring within 12 months or less) expense that has not yet been incurred but has already been paid for (via cash or a payable account). This can be early payment of a one-time future service or delivery within the next 12 months, or part of a series of expenses that have been paid in advance, such as an annual subscription for a monthly phone plan. Only cash movement is recorded at this time. The expense will not show up on the income statement until the prepaid expense has been transitioned to an actual expense, asset or inventory.

Requires a follow-up transaction of a Transition of Short-Term Prepaid Expense to Actual Expense
transaction (for non-inventory and non-assets) or Transition of Short-Term Prepaid to Actual Asset or Inventory transaction (for inventory or assets) when the expense is incurred.

Relevant Columns

• B [Default Account Value]: Required.

Input the prepaid amount being recorded, inclusive of any sales tax. Adds to the Prepaid Expenses (Current) balance.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• E [Cash Paid]: Required.

Input the initial amount of cash paid when prepaying the invoice. The remaining amount due becomes a balance on a payable account.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• F [Remaining Payable]: Required.

Input the remaining amount of prepayment due after any initial cash paid at the time of the invoice payment. Adds to the balance on a payable account.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: B = E + F = Check 2
• Reverse/Adjust: (B) = (E) + (F) = Check 2

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount.

 For Add/New Action Type:

[Default Account Value] = [Cash Paid] + [Remaining Payable] = Check 2 [Total Payment]

 For Reverse/Adjust Action Type:

[Default Account Value] = [Cash Paid] + [Remaining Payable] = Check 2 [Total Payment]

Transition of Short-Term Prepaid Expense to Actual Expense

When to Use – To officially record a short-term (due to occur within 12 months or less) expense that has now been incurred after the prepayment was made in a previous period. This can be a one-time clearing of the total prepayment, or a partial clearing of prepayment for extended services or deliveries over time (such as recognizing one month’s expense of a prepaid annual phone plan). No cash movement is recorded at this time. The Prepaid Expenses (Current) balance is reduced by the sum of total expenses recorded.

Relevant Columns

• Dropdown A: Required.

Select from the dropdown list of indirect expense accounts (default 6-series accounts) or direct billable expense accounts (default 5-series accounts).

• B [Default Account Value]: Required.

Input the amount of the prepaid expense that has been incurred, not including VAT or GST if registered. If not registered for VAT or GST, the total prepaid expense amount that has been incurred should be recorded for the expense.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• C [VAT]: Required if applicable.

Input the amount of VAT (Value-Added Tax) from the prepaid expense that has been incurred. Can be used to claim credits against VAT collected on sales for VAT-registered businesses.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• D [GST]: Required if applicable.

Input the amount of GST (Goods and Services Tax) from the prepaid expense that has been incurred. Can be used to claim credits against GST collected on sales for GST-registered businesses.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: Dropdown A, B + C + D = Check 1
• Reverse/Adjust: Dropdown A, (B) + (C) + (D) = Check 1

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount.

 For Add/New Action Type:

[Default Account Value] + [VAT] + [GST] = Check 1 [Total Expense]

 For Reverse/Adjust Action Type:

[Default Account Value] + [VAT] + [GST] = Check 1 [Total Expense]

Prepaid Expense (Long-Term)

When to Use – To record the cash movement for a new long-term (occurring over more than 12 months in total) expense that has not yet been incurred but has already been paid for with cash or via a payable account. This can be early payment of a one-time future service or delivery that occurs or finishes later than 12 months in the future, or part of a series of expenses that have been paid in advance, such as an 18-month subscription. Only cash movement is recorded at this time, not any expense.

Requires follow-up recordings of a Transition of Long-Term Prepaid Expense to Short-Term Prepaid Expense to recognize the portions of the prepaid expense to be incurred within 12 months, and then another recording of a Transition of Short-Term Prepaid Expense to Actual Expense when any of the prepaid expense is incurred. See the section ANNEX: Accrual Transactions for a Long-Term Prepaid Expense example.

Relevant Columns

• B [Default Account Value]: Required.

Input the prepaid amount being recorded, inclusive of any sales tax.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• E [Cash Paid]: Required.

Input the initial amount of cash paid when prepaying the invoice. The remaining amount due becomes a balance on a payable account.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• F [Remaining Payable]: Required.

Input the remaining amount of prepayment due after any initial cash paid at the time of the invoice payment. Adds to the balance on a payable account.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: B = E + F = Check 2
• Reverse/Adjust: (B) = (E) + (F) = Check 2

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount.

 For Add/New Action Type:

[Default Account Value] = [Cash Paid] + [Remaining Payable] = Check 2 [Total Payment]

 For Reverse/Adjust Action Type:

[Default Account Value] = [Cash Paid] + [Remaining Payable] = Check 2 [Total Payment]

Transition of Long-Term Prepaid Expense to Short-Term Prepaid Expense

When to Use – To transfer a portion of Prepaid Expenses (Long-Term) that is to be due within the next 12 months to the balance for Prepaid Expenses (Current), reducing the remaining balance on Prepaid Expenses (Long-Term). Best practice is to record a new balance transfer entry every month until the balance remaining on Prepaid Expenses (Long-Term) is cleared and only the balance on Prepaid Expenses (Current) remains to be transitioned to actual expenses once incurred.

Requires a follow-up recording of a Transition of Short-Term Prepaid Expense to Actual Expense to transition part or all of the Prepaid Expenses (Current) balance to an actual expense that has been incurred. See the section ANNEX: Accrual Transactions for a Long-Term Prepaid Expense example.

Relevant Columns

• B [Default Account Value]: Required.

Input the amount of the Prepaid Expenses (Long-Term) balance that is being moved to the Prepaid Expenses (Current) balance.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: B
• Reverse/Adjust: (B)

Double Entry Checks

 N/A

Lease Expense with Deferred Payment

Note: Only applicable for businesses that implement accrual accounting, wherein revenue is recognized when earned and expenses when incurred, rather than when cash exchanges hands, aligning with the matching principle. For cash-basis accounting, you can instead record lease expenses using Add/New action for Operating or Direct Cost Expense.

When to Use – To record lease expenses that specifically include deferred payment terms, especially free rental periods. The Deferred Lease account balance is automatically calculated when the lease expense (straight-line value of the total lease payment) does not equal the cash due. The balance on Deferred Lease from the free/discounted period eventually clears from payments that are different than the straight-line value of the lease payments.

See the section ANNEX: Accrual Transactions for a Deferred Lease example.

Relevant Columns

• B [Default Account Value]: Required.

Input the discounted straight-line lease expense being recorded, not including VAT or GST if registered. In the Deferred Lease example, this would be the 916.67 per month lease expense assuming the business is not VAT/GST registered.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• C [VAT]: Required if applicable.

Input the amount of VAT (Value-Added Tax) for the discounted one-month straight-line amount of lease expense being recorded. Can be used to claim credits against VAT collected on sales for VAT-registered businesses.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• D [GST]: Required if applicable.

Input the amount of GST (Goods and Services Tax) for the discounted one-month straight-line amount of lease expense being recorded. Can be used to claim credits against GST collected on sales for GST-registered businesses.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• E [Cash Paid]: Required.

Input the initial amount of cash paid when recording the discounted straight-line lease expense. The remaining amount due becomes a balance on a payable account. Leave as 0 or blank if there is no payment due to a free rent period.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• F [Remaining Payable]: Required.

Input the remaining amount due after any initial cash paid at the time of the expense recording. Adds to the balance on a payable account. Leave as 0 or blank if there is no payment due to a free rent period.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• G [Deferred Lease]: Automated.

Is automatically calculated when the lease expense recognized does not equal the sum of Cash Paid and Remaining Payable, with signage that varies depending on the situation. When the payment due is less than the straight-line lease expense recognized, the deferred lease amount is shown as a positive amount. When the payment due is greater than the straight-line lease expense recognized, the deferred lease is shown as a negative amount.

Column Input Requirements

• Add/New: B + C + D = Check 1 = E + F + {G}
• Reverse/Adjust: (B) + (C) + (D) = Check 1 = (E) + (F) + {G}

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount. Purple indicates an amount that may be positive or negative.
*[Deferred Lease] has signage that varies depending on the situation. See details in the notes above.

 For Add/New Action Type:

[Default Account Value] + [VAT] + [GST] = Check 1 [Total Expense] = [Cash Paid] + [Remaining Payable] + [Deferred Lease]

 For Reverse/Adjust Action Type:

[Default Account Value] + [VAT] + [GST] = Check 1 [Total Expense] = [Cash Paid] + [Remaining Payable] + [Deferred Lease]

Estimate for Income Tax Refund

Note: Only applicable for businesses that implement accrual accounting, wherein revenue is recognized when earned and expenses when incurred, rather than when cash exchanges hands, aligning with the matching principle. For cash-basis accounting, record income tax refunds using the Reverse/Adjust action for Operating or Direct Cost Expense.

When to Use – To prepare for any anticipated income tax refund (which usually occurs during tax season the following year) during the period or year in which taxes have already been overpaid. Reduces the income tax expense in the current period while adding to the Income Tax Receivable balance.

This is the first step to recording an income tax refund, with the next step being to finalize the income tax refund and clear Income Tax Receivable with the action Add/New Cash Inflow from Reimbursement of Income Tax Receivable.

If the original income tax refund was over- or under-estimated, record a Reverse/Adjust or Add/New for Estimate for Income Tax Refund respectively to clear the Income Tax Receivable balance. If instead of a refund, the Income Tax Expense recognized by year-end is lower than the anticipated income taxes due during tax season the following year, use the Add/New Expense Accrual (Pending Invoice) scenario and select the Income Tax Expense account. Then when the actual tax invoice is received in a future period, use the Reverse/Adjust action for Expense Accrual (Pending Invoice) to reverse the accrued expense at the same time as recording an Add/New action for Operating or Direct Cost Expense.

Relevant Columns

• B [Default Account Value]: Required.

Input the anticipated amount of the income tax expense refund (the amount that has been overpaid).

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: B
• Reverse/Adjust: (B)

Double Entry Checks

 N/A

Reimbursable Expense Claim

When to Use – To record an expense that has been partially or fully paid by another party and that needs to be reimbursed by the company. For example, an employee may pay for a business meal on their personal account with the expectation that the company will reimburse the employee at a later date. The related payable account to clear is Expense Claims Payable using Add/New Cash Outflow for Payment from Accounts Payable List from the Bank accounting module.

Relevant Columns

• Dropdown A: Required.

Select from the dropdown list of indirect expense accounts (default 6-series accounts) or direct billable expense accounts (default 5-series accounts).

• B [Default Account Value]: Required.

Input the amount of the expense being recorded, not including VAT or GST if registered. If not registered for VAT or GST, the total purchase amount should be recorded for the expense.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• C [VAT]: Required if applicable.

Input the amount of VAT (Value-Added Tax) from the purchase. Can be used to claim credits against VAT collected on sales for VAT-registered businesses.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• D [GST]: Required if applicable.

Input the amount of GST (Goods and Services Tax) from the purchase. Can be used to claim credits against GST collected on sales for GST-registered businesses.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• E [Cash Paid]: Required.

Input the initial amount of cash already reimbursed by the company when recording the expense. The remaining amount due becomes a balance on the Expense Claims Payable account.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• F [Remaining Payable]: Required.

Input the remaining amount due after any initial cash reimbursed by the company at the time of the expense recording. Adds to the balance on the Expense Claims Payable account.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: Dropdown A, B + C + D = Check 1 = E + F = Check 2
• Reverse/Adjust: Dropdown A, (B) + (C) + (D) = Check 1 = (E) + (F) = Check 2

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount.

 For Add/New Action Type:

[Default Account Value] + [VAT] + [GST] = Check 1 [Total Expense] = [Cash Paid] + [Remaining Payable] = Check 2 [Total Payment]

 For Reverse/Adjust Action Type:

[Default Account Value] + [VAT] + [GST] = Check 1 [Total Expense] = [Cash Paid] + [Remaining Payable] = Check 2 [Total Payment]

In-Kind Contributions – Expenses (Core Revenue)

When to Use – To record the donation of services or other non-cash, non-asset and non-inventory expenses (such as 6-series indirect expenses) to the company or organization as part of the core mission. The gifted service or expense is netted against the revenue account In-Kind Contributions – Expenses for a net zero impact on profit. For other gifts-in-kind that are not core to the mission, use Gifts-in-Kind – Contribution Expense (Other Income) instead.

For core mission cash gifts to the company, use Cash Inflow from Cash Contribution (Core Revenue) from the Bank accounting module. For core mission inventory or asset contributions to the company, use In-Kind Contribution – Inventory (Core Revenue) or In-Kind Contribution – Assets (Core Revenue) from the Inventory & Assets accounting module.

Relevant Columns

• Dropdown A: Required.

Select from the dropdown list of expense accounts. For In-Kind Contributions – Expenses, the expense account is more likely to be a 6-series indirect expense account.

• B [Default Account Value]: Required.

Input the fair value of the expense being recorded.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: Dropdown A, B
• Reverse/Adjust: Dropdown A, (B)

Double Entry Checks

 N/A

Gifts-in-Kind – Contribution Expense (Other Income)

When to Use – To record the non-core gifting of services or other non-cash, non-asset and non-inventory expenses (such as 6-series indirect expenses) to the company without expectation of payment. The expense is netted against Gifts In-Kind – Contribution Expense (in Other Income) for a net zero impact on profit. For non-profits or other businesses that receive other in-kind contributions (e.g. specialized professional services, free technology, etc) as part of their core mission, use the In-Kind Contributions – Expenses (Core Revenue) instead.

For non-core cash gifts to the company, use Cash Inflow from Cash Gift (Other Income) from the Bank accounting module. For inventory or asset gifts to the company, use Gifts-in-Kind – Inventory (Other Income) or Gifts-in-Kind – Assets (Other Income) from the Inventory & Assets accounting module.

Relevant Columns

• Dropdown A: Required.

Select from the dropdown list of expense accounts. For Gifts-in-Kind – Contribution Expense, the expense account is more likely to be a 6-series indirect expense account.

• B [Default Account Value]: Required.

Input the fair value of the expense being recorded.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: Dropdown A, B
• Reverse/Adjust: Dropdown A, (B)

Double Entry Checks

 N/A

Refundable Purchase Deposit

Note: Only applicable for businesses that implement accrual accounting, wherein revenue is recognized when earned and expenses when incurred, rather than when cash exchanges hands, aligning with the matching principle. For cash-basis accounting, record the purchase deposit as part of the expense using the Add/New action for Operating or Direct Cost Expense and then Reverse/Adjust the same expense category when the deposit is returned to the company.

When to Use – To record a cash deposit made with a vendor for a purchase that is expected to be refunded at a later time. Usually a deposit is made to secure a future purchase, such as a deposit for a large delivery of supplies. The deposit amount increases the balance of the Deposits Receivable account, to be cleared when the cash is refunded to the company. To record when the deposit is refunded to the company, use Add/New Cash Inflow from Reimbursement of Deposits Receivable from the Bank accounting module. If the deposit is forfeited, Add/New Loss on Forfeited Deposit (Other Expense) for the amount forfeited.

Relevant Columns

• B [Default Account Value]: Required.

Input the amount of the purchase deposit being recorded.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: B
• Reverse/Adjust: (B)

Double Entry Checks

 N/A

Loss on Forfeited Deposit (Other Expense)

When to Use – To record the forfeit of a cash deposit that was made with a vendor, usually due to some form of penalty. The amount forfeited becomes an expense, and the balance of Deposits Receivable is reduced.

Relevant Columns

• B [Default Account Value]: Required.

Input the amount of the purchase deposit that is forfeited.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: B
• Reverse/Adjust: (B)

Double Entry Checks

 N/A

Irrecoverable VAT as Expense

When to Use – To add the VAT sales tax back to the total of the original expense account when the VAT has been determined to be irrecoverable. Only applies to companies that are VAT-registered that have been separating VAT from the main expense.

Relevant Columns

• Dropdown A: Required.

Select from the dropdown list of indirect expense accounts (default 6-series accounts) or direct billable expense accounts (default 5-series accounts).

• B [Default Account Value]: Required.

Input the amount of VAT that is now being added back as an expense. This increases expenses and reduces the Input VAT receivable account.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: Dropdown A, B
• Reverse/Adjust: Dropdown A, (B)

Double Entry Checks

 N/A

Irrecoverable GST as Expense

When to Use – To add the GST sales tax back to the total of the original expense account when the GST has been determined to be irrecoverable. Only applies to companies that are GST-registered that have been separating GST from the main expense.

Relevant Columns

• Dropdown A: Required.

Select from the dropdown list of indirect expense accounts (default 6-series accounts) or direct billable expense accounts (default 5-series accounts).

• B [Default Account Value]: Required.

Input the amount of GST that is now being added back as an expense. This increases expenses and reduces the GST Input Tax Credit receivable account.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: Dropdown A, B
• Reverse/Adjust: Dropdown A, (B)

Double Entry Checks

 N/A

Allowance for Doubtful Accounts for Estimated Bad Debt Expense

When to Use – To add an estimated or known Bad Debt Expense in anticipation of being unable to collect part of the Accounts Receivable balance, such as from a customer that is unable to pay for a sale that cannot be cancelled or refunded.

This is the first step to writing off Accounts Receivable, with the next step being to finalize the write-off with the action Add/New Accounts Receivable Write-Off from Allowance for Doubtful Accounts. While this is combination of steps is generally part of accrual accounting so that Allowance for Doubtful Accounts can be recognized earlier than when the accounts receivable is written-off, use these same two steps for cash-basis accounting by recording both steps in the same period.

Relevant Columns

• B [Default Account Value]: Required.

Input the amount of Bad Debt Expense being estimated. This adds to the balance of the Allowance for Doubtful Accounts contra-receivable account.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: B
• Reverse/Adjust: (B)

Double Entry Checks

 N/A

Accounts Receivable Write-Off from Allowance for Doubtful Accounts

When to Use – To finalize a write-off of Accounts Receivable due to bad debt, such as from a customer that is unable to pay for a sale that cannot be cancelled or refunded. This is the second step after Allowance for Doubtful Accounts for Estimated Bad Debt Expense and clears the balance of the estimated Allowance for Doubtful Accounts while reducing the balance on Accounts Receivable.

If the original Allowance for Doubtful Accounts was over- or under-estimated, record another Reverse/Adjust or Add/New Allowance for Doubtful Accounts for Estimated Bad Debt Expense respectively to clear the remainder as needed.

Relevant Columns

• B [Default Account Value]: Required.

Input the amount of the Accounts Receivable balance to write off.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: B
• Reverse/Adjust: (B)

Double Entry Checks

 N/A

Recovery or Refund of Prior Year Expense

When to Use – To record a refund to the company for an expense incurred during a prior fiscal year, which would be recorded in the current fiscal year as a revenue (Recovery of Prior Year Expense) rather than a decrease to the original expense balance.

Relevant Columns

• B [Default Account Value]: Required.

Input the amount of the refunded amount being recorded, inclusive of any sales tax.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• E [Cash Paid]: Required.

Input the initial amount of cash already paid to the company at the time of the recording. The remaining amount due to the company becomes a balance on Accounts Receivable.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• F [Remaining Payable]: Required.

Input the remaining amount payable to the company after any initial cash received at the time of the recording. Adds to the balance on Accounts Receivable.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: B = E + F = Check 2
• Reverse/Adjust: (B) = (E) + (F) = Check 2

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount.

 For Add/New Action Type:

[Default Account Value] = [Cash Paid] + [Remaining Payable] = Check 2 [Total Payment]

 For Reverse/Adjust Action Type:

[Default Account Value] = [Cash Paid] + [Remaining Payable] = Check 2 [Total Payment]

SALES MODULE

Purpose
Accounting module to record inventory and non-inventory revenue sales, free promotional services, sales returns, advance deposits, accrued revenue and prepaid revenue.

Module Columns
• Dropdown A
• Product ID Name
• B [Quantity]
• C [Default Account Price]
• D [VAT]
• E [GST]
• F [Sales Tax]
• G [Fee Revenue]
• H [Shipping Revenue]
• I [Discount Amount]
• J [Cash Paid]
• K [Remaining Receivable]
• L [Cost of Goods Sold]

——– TRANSACTION SCENARIO OPTIONS FOR SELECTION ——-

Inventory Sales Revenue

When to Use – To record revenue from inventory products sold. For other non-inventory revenue sales, use the Non-Inventory Sales Revenue transaction instead.

Consider using the supplementary INVENTORY MANAGER to help track all inventory purchases and sales and automatically calculate Cost of Goods Sold under First-In, First-Out (FIFO) or Weighted Average (WA) cost methods.

Relevant Columns

• Product ID Name – Required.

Select from the dropdown list of products/services. Products and services are set up in the Product & Inventory Lookup tab.

Determines whether the inventory sold is Finished, Work-in-Process or Raw. When using the automated Revenue Invoice Generator, the Product ID Name is displayed on line 1 of a sales transaction while the Transaction Description is displayed on line 2.

• B [Quantity] – Required.

Input the quantity of the product sold.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• C [Default Account Price] – Required.

Input the full unit price of each product sold before any discounts, sales tax, fee, or shipping revenue which will be added separately.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• D [VAT] – Required if applicable.

Input the amount of VAT (Value-Added Tax) collected on the sale. This tax collected is payable to corresponding government entities, though some or all of the balance can be netted by VAT paid on purchases for VAT-registered businesses.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• E [GST] – Required if applicable.

Input the amount of GST (Goods and Services Tax) collected on the sale. This tax collected is payable to corresponding government entities, though some or all of the balance can be netted by GST paid on purchases for GST-registered businesses.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• F [Sales Tax] – Required if applicable.

Input the amount of sales tax collected on the sale that is not classified as VAT or GST. This sales tax adds to the balance of Sales Tax Payable that is owed to the government.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• G [Fee Revenue] – Required if applicable.

Input the amount of fee earned as part of the total sale, usually as an additional profit for a service or a contract.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• H [Shipping Revenue] – Required if applicable.

Input the amount of shipping and handling costs paid by the customer as part of sale revenue. Covers some or all of the Shipping Expense operating expense amount paid by the company, which are separately recorded under the Expenses accounting module. If shipping costs are covered by the company or not applicable, leave 0 or blank.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• I [Discount Amount] – Required if applicable.

Input the discount amount applied to the overall sale, reducing the total amount owed by the customer. This amount adds to the balance of the Sales Discounts contra-revenue account, which tracks foregone revenue.

 Add/New Signage: Negative amount
 Reverse/Adjust Signage: Positive amount

• J [Cash Paid] – Required.

Input the initial amount of cash paid by the customer when recording the sale. The remaining amount due becomes a balance on Accounts Receivable, such as when a customer pays by credit.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• K [Remaining Receivable] – Required.

Input the remaining amount due by the customer after any initial cash paid at the time of the sale recording. Adds to the balance on Accounts Receivable.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• L [Cost of Goods Sold] – Required.

Input the production value of the inventory sold (either the cost to produce or acquire the inventory). Applies to sales involving physical goods sold and reduces the inventory value balance by the production value of the inventory sold.

The standalone INVENTORY MANAGER can help automatically calculate Cost of Goods Sold under First-In, First-Out (FIFO) or Weighted Average (WA) cost methods.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: Product ID Name, [B × C] + D + E + F + G + H + (I) = Check 2 = J + K = Check 3, L
• Reverse/Adjust: Product ID Name, -[(B) × (C)] + (D) + (E) + (F) + (G) + (H) + I = Check 2 = (J) + (K) = Check 3, (L)

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount.

 For Add/New Action Type:

[Quantity] x [Default Account Price] + [VAT] + [GST] + [Sales Tax] + [Fee Revenue] + [Shipping Revenue] + [Discount Amount] = Check 2 [Total Invoice] = [Cash Paid] + [Remaining Receivable] = Check 3 [Total Payment]

 For Reverse/Adjust Action Type:

– ( [Quantity] × [Default Account Price] ) + [VAT] + [GST] + [Sales Tax] + [Fee Revenue] + [Shipping Revenue] + [Discount Amount] = Check 2 [Total Invoice] = [Cash Paid] + [Remaining Receivable] = Check 3 [Total Payment]

Non-Inventory Sales Revenue

When to Use – To record revenue from non-inventory sales or services rendered. Revenue earned from billable (direct cost) expenses can be grouped into one transaction per Invoice ID or recorded in separate lines under the same Invoice ID. The actual billable (direct cost) expenses are separately recorded in the Expenses accounting module or the Payroll & Wages accounting module for non-labor and labor, respectively.

Relevant Columns

• Dropdown A – Required.

Select from the dropdown list of revenue accounts.

• Product ID Name – Optional if applicable, such as when recording the sales of specific services.

Select from the dropdown list of products/services. Products and services are set up in the Product & Inventory Lookup tab. When using the automated Revenue Invoice Generator, the Product ID Name is displayed on line 1 of a sales transaction while the Transaction Description is displayed on line 2.

• B [Quantity] – Required.

Input the quantity of the non-inventory sale or service rendered.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• C [Default Account Price] – Required.

Input the full unit price of each non-inventory sale or service rendered, before any discounts, sales tax, fee, or shipping revenue which will be added separately.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• D [VAT] – Required if applicable.

Input the amount of VAT (Value-Added Tax) collected on the sale or service. This tax collected is payable to corresponding government entities, though some or all of the balance can be netted by VAT paid on purchases for VAT-registered businesses.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• E [GST] – Required if applicable.

Input the amount of GST (Goods and Services Tax) collected on the sale or service. This tax collected is payable to corresponding government entities, though some or all of the balance can be netted by GST paid on purchases for GST-registered businesses.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• F [Sales Tax] – Required if applicable.

Input the amount of sales tax collected on the sale or service that is not classified as VAT or GST. This sales tax adds to the balance of Sales Tax Payable that is owed to the government.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• G [Fee Revenue] – Required if applicable.

Input the amount of fee earned as part of the total revenue sale, usually as an additional profit for a service or a contract.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• H [Shipping Revenue] – Required if applicable (though usually only applicable to inventory sales).

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• I [Discount Amount] – Required if applicable.

 Add/New Signage: Negative amount
 Reverse/Adjust Signage: Positive amount

• J [Cash Paid] – Required.

Input the initial amount of cash paid by the customer when recording the sale. The remaining amount due becomes a balance on Accounts Receivable, such as when a customer pays by credit.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• K [Remaining Receivable] – Required.

Input the remaining amount due by the customer after any initial cash paid at the time of the sale recording. Adds to the balance on Accounts Receivable.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: Dropdown A, Product ID Name, [B × C] + D + E + F + G + H + (I) = Check 2 = J + K = Check 3
• Reverse/Adjust: Dropdown A, Product ID Name, -[(B) × (C)] + (D) + (E) + (F) + (G) + (H) + I = Check 2 = (J) + (K) = Check 3

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount.

 For Add/New Action Type:

 For Reverse/Adjust Action Type:

Free Service Promotion

When to Use – To record net zero revenue for a service performed free of charge by the company, such as a free promotional service or trial. The revenue on the Special Services revenue account is netted out via the contra-revenue Discount on Special Services account. For free inventory giveaways, use Free Inventory Promotion Expense instead.

Relevant Columns

• Product ID Name – Optional if applicable, such as when recording the giveaway of specific services.

Select from the dropdown list of products/services. Products and services are set up in the Product & Inventory Lookup tab.

• B [Quantity] – Required.

Input the quantity of the free service rendered.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• C [Default Account Price] – Required.

Input the foregone full unit value of each free service rendered.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: Product ID Name, B × C = Check 1
• Reverse/Adjust: Product ID Name, -[(B) × (C)] = Check 1

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount.

 For Add/New Action Type:

[Quantity] × [Default Account Price] = Check 1 [Quantity × Price]

 For Reverse/Adjust Action Type:

– ( [Quantity] × [Default Account Price] ) = Check 1 [Quantity × Price]

Inventory Sales Return

When to Use – To record an inventory sales return and track the value of returns on a contra-revenue Sales Returns and Allowances account. Preferred for initiating sales returns instead of reversing a Sales Revenue transaction so that the frequency and value of returns can be tracked against the total value of sales. Due to the innate reversal nature, the normal Action Type signs are the opposite the Sales Revenue transaction signs. Note that Shipping Revenue has special situations that may change the signs or amounts associated with the returns, and Cost of Goods Sold may require an additional write-off transaction.

Relevant Columns

• Product ID Name – Required.

Select from the dropdown list of products/services. Products and services are set up in the Product & Inventory Lookup tab.

Determines whether the inventory is Finished, Work-in-Process or Raw.

• B [Quantity] – Required.

Input the quantity of the product being returned.

 Add/New Signage: Negative amount
 Reverse/Adjust Signage: Positive amount

• C [Default Account Price] – Required.

Input the full unit price of each product returned before any discounts, sales tax, fee, or shipping revenue which will be added separately.

 Add/New Signage: Negative amount
 Reverse/Adjust Signage: Positive amount

• D [VAT] – Required if applicable.

Input the amount of VAT (Value-Added Tax) returned on the sale.

 Add/New Signage: Negative amount
 Reverse/Adjust Signage: Positive amount

• E [GST] – Required if applicable.

Input the amount of GST (Goods and Services Tax) returned on the sale.

 Add/New Signage: Negative amount
 Reverse/Adjust Signage: Positive amount

• F [Sales Tax] – Required if applicable.

Input the amount of sales tax returned on the sale that is not classified as VAT or GST.

 Add/New Signage: Negative amount
 Reverse/Adjust Signage: Positive amount

• G [Fee Revenue] – Required if applicable.

Input the amount of fee returned as part of the total revenue sale, usually as an additional profit for a service or a contract.

 Add/New Signage: Negative amount
 Reverse/Adjust Signage: Positive amount

• H [Shipping Revenue] – Required if applicable.

Shipping and handling is a special case and companies often have varied return policies. The signage of the return amount is dependent on whether the customer receives a monetary return on the shipping cost originally paid (negative input), whether the customer must pay an additional shipping cost to the company to initiate the return (positive input), or if the return shipping is excluded from the return amount and handled independently by the customer (zero or blank). If the company pays for the cost to ship a returned product, then this is also recorded as zero or blank, and the Shipping Expense is separately recorded as an Add/New Operating or Direct Cost Expense transaction on the Expenses accounting module.

 Add/New Signage for return shipping cost refunded to the customer: Negative amount
 Add/New Signage for return shipping cost paid by the customer to the company: Positive amount
 Add/New Signage for return shipping cost handled by customer or company independently: N/A (0 or blank)

 Reverse/Adjust Signage for return shipping cost refunded to the customer: Positive amount
 Reverse/Adjust Signage for return shipping cost paid by the customer to the company: Negative amount
 Reverse/Adjust Signage for return shipping cost handled by customer or company independently: N/A (0 or blank)

• I [Discount Amount] – Required if applicable.

Input the discount amount applied to the original sale, reducing the total amount returnable to the customer.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• J [Cash Paid] – Required.

Input the initial amount of cash returned to the customer when recording the return. The remaining amount decreases the balance on Accounts Receivable.

 Add/New Signage: Negative amount
 Reverse/Adjust Signage: Positive amount

• K [Remaining Receivable] – Required.

Input the remaining amount refundable to the customer after any initial cash paid at the time of the sale recording. Decreases the balance on Accounts Receivable.

 Add/New Signage: Negative amount
 Reverse/Adjust Signage: Positive amount

• L [Cost of Goods Sold] – Required if applicable.

Applies to returns involving physical goods sold. Input the production value of the product being returned (either the cost to produce or acquire the inventory). Returns the Cost of Goods Sold amount to the inventory value, even if the inventory requires a write-off. If the customer keeps the product or the product cannot be resold at original value, then follow-up with an Add/New Write-Off of Finished Product Inventory transaction in the Inventory & Assets accounting module.

 Add/New Signage: Negative amount
 Reverse/Adjust Signage: Positive amount

Column Input Requirements

• Add/New: Product ID Name, -[(B) × (C)] + (D) + (E) + (F) + (G) + {H} + I = Check 2 = (J) + (K) = Check 3, (L)
• Reverse/Adjust: Product ID Name, [B × C] + D + E + F + G + {H} + (I) = Check 2 = J + K = Check 3, L

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount, Purple indicates an amount that may be positive or negative.
*Shipping Revenue [H] has signages that may vary from the typical expected sign depending on the situation of the return. See details in the Shipping Return notes above.

 For Add/New Action Type:

– ( [Quantity] × [Default Account Price] ) + [VAT] + [GST] + [Sales Tax] + [Fee Revenue] + [Shipping Revenue]* + [Discount Amount] = Check 2 [Total Invoice] = [Cash Paid] + [Remaining Receivable] = Check 3 [Total Payment]

 For Reverse/Adjust Action Type:

[Quantity] × [Default Account Price] + [VAT] + [GST] + [Sales Tax] + [Fee Revenue] + [Shipping Revenue]* + [Discount Amount] = Check 2 [Total Invoice] = [Cash Paid] + [Remaining Receivable] = Check 3 [Total Payment]

Non-Inventory Sales Return

When to Use – To record a non-inventory sales return and track the value of returns on a contra-revenue Sales Returns and Allowances account. Preferred for initiating sales returns instead of reversing a Sales Revenue transaction so that the frequency and value of returns can be tracked against the total value of sales. Due to the innate reversal nature, the normal Action Type signs are the opposite the Sales Revenue transaction signs. Note that Shipping Revenue has special situations that may change the signs or amounts associated with the returns.

Relevant Columns

• Product ID Name – Optional if applicable, such as when recording the return on sales of specific services.

Select from the dropdown list of products/services. Products and services are set up in the Product & Inventory Lookup tab.

• B [Quantity] – Required.

Input the quantity of the sale or service being returned.

 Add/New Signage: Negative amount
 Reverse/Adjust Signage: Positive amount

• C [Default Account Price] – Required.

Input the full unit price of each sale or service returned before any discounts, sales tax, fee, or shipping revenue which will be added separately.

 Add/New Signage: Negative amount
 Reverse/Adjust Signage: Positive amount

• D [VAT] – Required if applicable.

Input the amount of VAT (Value-Added Tax) returned on the sale or service.

 Add/New Signage: Negative amount
 Reverse/Adjust Signage: Positive amount

• E [GST] – Required if applicable.

Input the amount of GST (Goods and Services Tax) returned on the sale or service.

 Add/New Signage: Negative amount
 Reverse/Adjust Signage: Positive amount

• F [Sales Tax] – Required if applicable.

Input the amount of sales tax returned on the sale or service that is not classified as VAT or GST.

 Add/New Signage: Negative amount
 Reverse/Adjust Signage: Positive amount

• G [Fee Revenue] – Required if applicable.

Input the amount of fee returned as part of the total revenue sale, usually as an additional profit for a service or a contract.

 Add/New Signage: Negative amount
 Reverse/Adjust Signage: Positive amount

• H [Shipping Revenue] – Required if applicable, though usually not applicable for non-inventory returns.

Shipping and handling is a special case and companies often have varied return policies. The signage of the return amount is dependent on whether the customer receives a monetary return on the shipping cost originally paid (negative), whether the customer must pay an additional shipping cost to the company to initiate the return (positive), or if the return shipping is excluded from the return amount and handled independently by the customer (zero or blank). If the company pays for the cost to ship a returned product, then this is also recorded as zero or blank, and the Shipping Expense is separately recorded as an Add/New Operating or Direct Cost Expense transaction on the Expenses accounting module.

 Reverse/Adjust Signage for return shipping cost returned to the customer: Positive amount
 Reverse/Adjust Signage for return shipping cost paid by the customer to the company: Negative amount
 Reverse/Adjust Signage for return shipping cost handled by customer or company independently: N/A (0 or blank)

• I [Discount Amount] – Required if applicable.

Input the discount amount applied to the original sale, reducing the total amount returnable to the customer.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• J [Cash Paid] – Required.

Input the initial amount of cash returned to the customer when recording the return. The remaining amount decreases the balance on Accounts Receivable.

 Add/New Signage: Negative amount
 Reverse/Adjust Signage: Positive amount

• K [Remaining Receivable] – Required.

Input the remaining amount refundable to the customer after any initial cash paid at the time of the sale recording. Decreases the balance on Accounts Receivable.

 Add/New Signage: Negative amount
 Reverse/Adjust Signage: Positive amount

Column Input Requirements

• Add/New: Product ID Name, -[(B) × (C)] + (D) + (E) + (F) + (G) + {H} + I = Check 2 = (J) + (K) = Check 3
• Reverse/Adjust: Product ID Name, [B × C] + D + E + F + G + {H} + (I) = Check 2 = J + K = Check 3

 For Add/New Action Type:

 For Reverse/Adjust Action Type:

Refundable Customer Advance Deposit

When to Use – To record temporary cash deposits received from customers, usually to lock in a future purchase. These advance deposits add to the balance of Customer Deposits Payable, which can be cleared using the Cash Outflow for Payment from Accounts Payable List action from the Bank accounting module.

Relevant Columns

• Product ID Name – Optional if applicable, such as when recording deposits for the sales of specific inventory products or services.

Select from the dropdown list of products/services. Products and services are set up in the Product & Inventory Lookup tab.

• B [Quantity] – Required.

Input the quantity of customer deposits being recorded.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• C [Default Account Price] – Required.

Input the amount of each customer deposit being recorded.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• J [Cash Paid] – Required.

Input the initial amount of cash deposit paid by the customer when recording the sale. The remaining amount due becomes a balance on Accounts Receivable, such as when a customer pays by credit.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• K [Remaining Receivable] – Required.

Input the remaining amount due by the customer after any initial cash paid at the time of the customer advance deposit recording. Adds to the balance on Accounts Receivable.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: Product ID Name, B × C = Check 1 = Check 2 = J + K = Check 3
• Reverse/Adjust: Product ID Name, -[(B) × (C)] = Check 1 = Check 2 = (J) + (K) = Check 3

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount.

 For Add/New Action Type:

[Quantity] × [Default Account Price] = Check 1 [Quantity × Price] = Check 2 [Total Invoice] = [Cash Paid] + [Remaining Receivable] = Check 3 [Total Payment]

 For Reverse/Adjust Action Type:

– ( [Quantity] × [Default Account Price] ) = Check 1 [Quantity × Price] = Check 2 [Total Invoice] = [Cash Paid] + [Remaining Receivable] = Check 3 [Total Payment]

Accrued (Not yet Invoiced) Inventory Sales Revenue

When to Use – To record inventory sales revenue that has been incurred but the customer invoice has not yet been issued to the customer. The inputs of the revenue accrual are identical to recording sales revenue, except there is no payment input at this time and the balance of the transaction gets added to the Accrued Revenue account. Accrued revenue should be recorded in the period in which the sale occurred, then must be fully reversed at a future time when the customer invoice is issued and can be officially recorded with a net zero impact to that future period. If the revenue accrual is only an estimate, the impact in that future period may not be net zero.

To reverse the accrual and record the actual invoice issued in that future period, use the Reverse/Adjust action for Accrued (Not yet Invoiced) Inventory Sales Revenue to reverse the accrued revenue at the same time as recording an Add/New transaction for Inventory Sales Revenue.

Relevant Columns

• Product ID Name – Required.

Select from the dropdown list of products/services. Products and services are set up in the Product & Inventory Lookup tab.

Determines whether the inventory sold is Finished, Work-in-Process or Raw.

• B [Quantity] – Required.

Input the quantity of the product sold.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• C [Default Account Price] – Required.

Input the full unit price of each product sold before any discounts, sales tax, fee, or shipping revenue which will be added separately.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• D [VAT] – Required if applicable.

Input the amount of VAT (Value-Added Tax) to be collected on the sale. This tax collected is payable to corresponding government entities, though some or all of the balance can be netted by VAT paid on purchases for VAT-registered businesses.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• E [GST] – Required if applicable.

Input the amount of GST (Goods and Services Tax) to be collected on the sale. This tax collected is payable to corresponding government entities, though some or all of the balance can be netted by GST paid on purchases for GST-registered businesses.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• F [Sales Tax] – Required if applicable.

Input the amount of sales tax to be collected on the sale that is not classified as VAT or GST. This sales tax adds to the balance of Sales Tax Payable that is owed to the government.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• G [Fee Revenue] – Required if applicable.

Input the amount of fee earned as part of the total revenue sale, usually as an additional profit for a service or a contract.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• H [Shipping Revenue] – Required if applicable.

Input the amount of shipping and handling costs to be paid by the customer as part of a sale. Covers some or all of the Shipping Expense operating expense amount paid by the company.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• I [Discount Amount] – Required if applicable.

 Add/New Signage: Negative amount
 Reverse/Adjust Signage: Positive amount

• L [Cost of Goods Sold] – Required.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: Product ID Name, [B × C] + D + E + F + G + H + (I) = Check 2, L
• Reverse/Adjust: Product ID Name, -[(B) × (C)] + (D) + (E) + (F) + (G) + (H) + I = Check 2, (L)

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount.

 For Add/New Action Type:

[Quantity] x [Default Account Price] + [VAT] + [GST] + [Sales Tax] + [Fee Revenue] + [Shipping Revenue] + [Discount Amount] = Check 2 [Total Invoice]

 For Reverse/Adjust Action Type:

– ( [Quantity] × [Default Account Price] ) + [VAT] + [GST] + [Sales Tax] + [Fee Revenue] + [Shipping Revenue] + [Discount Amount] = Check 2 [Total Invoice]

Accrued (Not yet Invoiced) Non-Inventory Sales Revenue

When to Use – To record non-inventory revenue that has been incurred but the customer invoice has not yet been issued to the customer. The inputs of the revenue accrual are identical to recording sales revenue, except there is no payment input at this time and the balance of the transaction gets added to the Accrued Revenue account. Accrued revenue should be recorded in the period in which the sale occurred, then must be fully reversed at a future time when the customer invoice is issued and can be officially recorded with a net zero impact to that future period. If the revenue accrual is only an estimate, the impact in that future period may not be net zero.

To reverse the accrual and record the actual invoice issued in that future period, use the Reverse/Adjust action for Accrued (Not yet Invoiced) Non-Inventory Sales Revenue to reverse the accrued revenue at the same time as recording an Add/New action for Non-Inventory Sales Revenue.

Relevant Columns

• Dropdown A – Required.

Select from the dropdown list of revenue accounts.

• Product ID Name – Optional if applicable, such as when recording the sales of specific services.

Select from the dropdown list of products/services. Products and services are set up in the Product & Inventory Lookup tab.

• B [Quantity] – Required.

Input the quantity of the sale or service rendered.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• C [Default Account Price] – Required.

Input the full unit price of each sale or service rendered, before any discounts, sales tax, fee, or shipping revenue which will be added separately.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• D [VAT] – Required if applicable.

Input the amount of VAT (Value-Added Tax) to be collected on the sale or service. This tax collected is payable to corresponding government entities, though some or all of the balance can be netted by VAT paid on purchases for VAT-registered businesses.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• E [GST] – Required if applicable.

Input the amount of GST (Goods and Services Tax) to be collected on the sale or service. This tax collected is payable to corresponding government entities, though some or all of the balance can be netted by GST paid on purchases for GST-registered businesses.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• F [Sales Tax] – Required if applicable.

Input the amount of sales tax to be collected on the sale or service that is not classified as VAT or GST. This sales tax adds to the balance of Sales Tax Payable that is owed to the government.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• G [Fee Revenue] – Required if applicable.

Input the amount of fee earned as part of the total revenue sale, usually as an additional profit for a service or a contract.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• H [Shipping Revenue] – Required if applicable. Usually not applicable to non-inventory sales.

Input the amount of shipping and handling costs to be paid by the customer as part of a sale. Covers some or all of the Shipping Expense operating expense amount paid by the company.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• I [Discount Amount] – Required if applicable.

 Add/New Signage: Negative amount
 Reverse/Adjust Signage: Positive amount

Column Input Requirements

• Add/New: Dropdown A, Product ID Name, [B × C] + D + E + F + G + H + (I) = Check 2
• Reverse/Adjust: Dropdown A, Product ID Name, -[(B) × (C)] + (D) + (E) + (F) + (G) + (H) + I = Check 2

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount.

 For Add/New Action Type:

[Quantity] x [Default Account Price] + [VAT] + [GST] + [Sales Tax] + [Fee Revenue] + [Shipping Revenue] + [Discount Amount] = Check 2 [Total Invoice]

 For Reverse/Adjust Action Type:

– ( [Quantity] × [Default Account Price] ) + [VAT] + [GST] + [Sales Tax] + [Fee Revenue] + [Shipping Revenue] + [Discount Amount] = Check 2 [Total Invoice]

Prepaid (Unearned) Revenue

When to Use – To record the cash movement for revenue that has not yet been earned but has already been paid for by a customer with cash or via a receivable account. This can be early payment of a one-time future service or delivery, or part of a series of sales that have been paid in advance, such as a multi-month contract paid upfront. Only cash movement is recorded at this time, not any revenue earned, with the balance added to the Prepaid Revenue account.

Requires a follow-up recording of an Add/New Transition of Prepaid (Unearned) Revenue to Actual Inventory Sales Revenue or Transition of Prepaid (Unearned) Revenue to Actual Non-Inventory Sales Revenue when the revenue is actually earned. If the advance payment only includes part of the total sale value, use an Add/New action for Inventory Sales Revenue or Non-Inventory Sales Revenue at the time the revenue is earned to cover the balance after transitioning the prepaid revenue to actual revenue. Conversely, if the advance payment exceeds the value of the final sale, use a Reverse/Adjust action for Prepaid (Unearned) Revenue to clear the excess balance on the Prepaid Revenue account.

Relevant Columns

• B [Quantity] – Required.

Input the quantity of the product to be sold or service to be rendered.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• C [Default Account Price] – Required.

Input the unit value of the product to be sold or service to be rendered. This includes any discounts, sales tax, fees, or shipping revenue which are assumed to be part of the advance payment and will be separately recorded later when transitioning from prepaid revenue to actual revenue.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• J [Cash Paid] – Required.

Input the initial amount of cash paid in advance by the customer when recording the sale. The remaining amount due becomes a balance on Accounts Receivable, such as when a customer pays by credit.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• K [Remaining Receivable] – Required.

Input the remaining amount due by the customer after any initial cash paid at the time of the sale recording. Adds to the balance on Accounts Receivable.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: B × C = Check 1 = Check 2 = J + K = Check 3
• Reverse/Adjust: -[(B) × (C)] = Check 1 = Check 2 = (J) + (K) = Check 3

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount.

 For Add/New Action Type:

[Quantity] × [Default Account Price] = Check 1 [Quantity × Price] = Check 2 [Total Invoice] = [Cash Paid] + [Remaining Receivable] = Check 3 [Total Payment]

 For Reverse/Adjust Action Type:

– ( [Quantity] × [Default Account Price] ) = Check 1 [Quantity × Price] = Check 2 [Total Invoice] = [Cash Paid] + [Remaining Receivable] = Check 3 [Total Payment]

Transition of Prepaid (Unearned) Revenue to Actual Inventory Sales Revenue

When to Use – To officially record inventory sales revenue that has now been earned after the prepayment was made in a previous period. This can be a one-time clearing of the total prepayment, or a partial clearing of prepayment for deliveries over time. Clears some or all of the balance on the Prepaid Revenue account. No cash movement is recorded at this time.

This is the follow-up step after recording Prepaid (Unearned) Revenue. If the advance payment only included part of the total sale value, use an additional Add/New action for Inventory Sales Revenue to cover the balance after transitioning the prepaid revenue to actual revenue. Conversely, if the advance payment exceeds the value of the final sale, use a Reverse/Adjust action for Prepaid (Unearned) Revenue to clear the excess balance on the Prepaid Revenue account.

Relevant Columns

• Product ID Name – Required.

Select from the dropdown list of products/services. Products and services are set up in the Product & Inventory Lookup tab.

• B [Quantity] – Required.

Input the quantity of the product sold.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• C [Default Account Price] – Required.

Input the full unit price of each product sold before any discounts, sales tax, fee, or shipping revenue which will be added separately.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• D [VAT] – Required if applicable.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• E [GST] – Required if applicable.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• F [Sales Tax] – Required if applicable.

Input the amount of sales tax collected on the sale that is not classified as VAT or GST. This sales tax adds to the balance of Sales Tax Payable that is owed to the government.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• G [Fee Revenue] – Required if applicable.

Input the amount of fee earned as part of the total sale, usually as an additional profit for a service or a contract.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• H [Shipping Revenue] – Required if applicable.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• I [Discount Amount] – Required if applicable.

 Add/New Signage: Negative amount
 Reverse/Adjust Signage: Positive amount

• J [Cash Paid] – Required.

Input the initial amount of cash paid by the customer when recording the sale. The remaining amount due becomes a balance on Accounts Receivable, such as when a customer pays by credit.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• K [Remaining Receivable] – Required.

Input the remaining amount due by the customer after any initial cash paid at the time of the sale recording. Adds to the balance on Accounts Receivable.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• L [Cost of Goods Sold] – Required.

The standalone INVENTORY MANAGER can help automatically calculate Cost of Goods Sold under First-In, First-Out (FIFO) or Weighted Average (WA) cost methods.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: Product ID Name, [B × C] + D + E + F + G + H + (I) = Check 2, L
• Reverse/Adjust: Product ID Name, -[(B) × (C)] + (D) + (E) + (F) + (G) + (H) + I = Check 2, (L)

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount.

 For Add/New Action Type:

[Quantity] × [Default Account Price] + [VAT] + [GST] + [Sales Tax] + [Fee Revenue] + [Shipping Revenue] + [Discount Amount] = Check 2 [Total Invoice]

 For Reverse/Adjust Action Type:

– ( [Quantity] × [Default Account Price] ) + [VAT] + [GST] + [Sales Tax] + [Fee Revenue] + [Shipping Revenue] + [Discount Amount] = Check 2 [Total Invoice]

Transition of Prepaid (Unearned) Revenue to Actual Non-Inventory Sales Revenue

When to Use – To officially record non-inventory revenue that has now been earned after the prepayment was made in a previous period. This can be a one-time clearing of the total prepayment, or a partial clearing of prepayment for extended services or deliveries over time (such as work performed on a multi-month contract). Clears some or all of the balance on the Prepaid Revenue account. No cash movement is recorded at this time.

This is the follow-up step after recording Prepaid (Unearned) Revenue. If the advance payment only included part of the total sale value, use an additional Add/New action for Non-Inventory Sales Revenue to cover the balance after transitioning the prepaid revenue to actual revenue. Conversely, if the advance payment exceeds the value of the final sale, use a Reverse/Adjust action for Prepaid (Unearned) Revenue to clear the excess balance on the Prepaid Revenue account.

Relevant Columns

• Dropdown A – Required.

Select from the dropdown list of revenue accounts.

• Product ID Name – Optional if applicable, such as when recording the sales of specific services.

• B [Quantity] – Required.

Input the quantity of the non-inventory sale or service rendered.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• C [Default Account Price] – Required.

Input the full unit price of each non-inventory sale or service rendered, before any discounts, sales tax, fee, or shipping revenue which will be added separately.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• D [VAT] – Required if applicable.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• E [GST] – Required if applicable.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• F [Sales Tax] – Required if applicable.

Input the amount of sales tax collected on the sale or service that is not classified as VAT or GST. This sales tax adds to the balance of Sales Tax Payable that is owed to the government.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• G [Fee Revenue] – Required if applicable.

Input the amount of fee earned as part of the total revenue sale, usually as an additional profit for a service or a contract.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• H [Shipping Revenue] – Required if applicable (though usually only applicable to inventory sales).

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• I [Discount Amount] – Required if applicable.

 Add/New Signage: Negative amount
 Reverse/Adjust Signage: Positive amount

• J [Cash Paid] – Required.

Input the initial amount of cash paid by the customer when recording the sale. The remaining amount due becomes a balance on Accounts Receivable, such as when a customer pays by credit.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• K [Remaining Receivable] – Required.

Input the remaining amount due by the customer after any initial cash paid at the time of the sale recording. Adds to the balance on Accounts Receivable.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: Dropdown A, Product ID Name, [B × C] + D + E + F + G + H + (I) = Check 2
• Reverse/Adjust: Dropdown A, Product ID Name, -[(B) × (C)] + (D) + (E) + (F) + (G) + (H) + I = Check 2

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount.

 For Add/New Action Type:

[Quantity] × [Default Account Price] + [VAT] + [GST] + [Sales Tax] + [Fee Revenue] + [Shipping Revenue] + [Discount Amount] = Check 2 [Total Invoice]

 For Reverse/Adjust Action Type:

– ( [Quantity] × [Default Account Price] ) + [VAT] + [GST] + [Sales Tax] + [Fee Revenue] + [Shipping Revenue] + [Discount Amount] = Check 2 [Total Invoice]

INDIRECT REVENUE MODULE

Purpose

Accounting module to record indirect cost recovery revenue specifically, typically found in reimbursable contracts. See the independent INDIRECT CALCULATOR for more details on what indirects are and how to calculate them, if applicable to your business. The Default Action is set to only one option–‘Indirect Cost Recovery Revenue’.

Up to ten Indirect Revenue accounts can be designated on the Chart of Accounts, of which some or all can be used to record indirect cost recovery. Only input amounts under the actively used Indirect Revenue accounts, and leave unused account columns blank or 0.

Module Columns

• Indirect Rev 1 – 10 – Required if applicable.

Input the amount of indirect cost recovered under each Indirect Revenue account. The sum of all the indirect amounts total the recorded indirect revenue invoice. If the indirect revenue is only part of the overall invoice, use the same Invoice ID as the other related revenue and direct cost transactions to view the full invoice in NEXUS.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• A [Cash Paid] – Required.

Input the initial amount of cash paid by the customer when recording the indirect revenue. The remaining amount due becomes a balance on Accounts Receivable, such as when a customer pays by credit.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• B [Remaining Receivable] – Required.

Input the remaining amount due by the customer after any initial cash paid at the time of the indirect revenue recording. Adds to the balance on Accounts Receivable.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: [Sum of Indirect Rev 1 through 10] = Check 1 = A + B = Check 2
• Reverse/Adjust: [Negative Sum of Indirect Rev 1 through 10] = Check 1 = (A) + (B) = Check 2

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount.

 For Add/New Action Type:

[Sum of Indirect Rev 1 through 10] = Check 1 [Total Invoice] = [Cash Paid] + [Remaining Receivable] = Check 2 [Total Payment]

 For Reverse/Adjust Action Type:

[Sum of Indirect Rev 1 through 10] = Check 1 [Total Invoice] = [Cash Paid] + [Remaining Receivable] = Check 2 [Total Payment]

PAYROLL & WAGES MODULE

Purpose

Accounting module to record payroll expenses for employees and consultants, both indirect and billable, by hours or by a fixed amount. The Payroll & Wages module also includes inputs for bonuses, commissions and tax and benefit withholdings (prepayments deducted from gross pay by employers and sent to governments or benefit companies on behalf of the employee). For simplified recording of wages for employees and consultants without withholdings or hours to track, or simplified booking of benefit expenses, you can directly Add/New Operating or Direct Cost Expense in the Expenses accounting module and select the appropriate labor or expense account.

Withholdings are deducted from the amount paid to employees and are cleared in the Bank accounting module using Add/New Cash Outflow for Payment from Accounts Payable List. Withholdings rarely apply to consultants, as consultants are usually external to the company instead of indirect labor. For any employee benefit expenses that are at least partially if not fully paid for by the company, the amount of the expense covered by the company should be separately recorded as an Add/New Operating or Direct Cost Expense in the Expenses accounting module and selecting the appropriate benefits account. In the Payroll & Wages module, the total withholdings cannot equal more than that total wages earned in the same transaction.

The Payroll & Wages module records labor cost only, not revenue. Billable revenue earned by employees should be separately captured in the Sales accounting module using an Add/New Non-Inventory Sales Revenue transaction and selecting a revenue account such as Commission Revenue, Contract Revenue or Service Revenue from Dropdown A.

The Timesheet Calculator can be used to assist with calculating the suggested amounts for each payroll transaction for active employees, particularly salaried employees. The ID columns (Product ID Name, Project ID Name, Department ID Name, Contact ID Name) have been rearranged in the Payroll & Wages module to make copy-pasting easier from the Timesheet Calculator to the Payroll & Wages module.

Due to the complexity of labor and tax laws, please consult with your payroll, human resource or finance advisor for guidance on your specific situation.

Module Columns

• Dropdown A
• B [Hours]
• C [Hourly Rate]
• D [Fixed Amount]
• E [Bonuses Paid]
• F [Commissions Paid]
• G [Tax Withheld]
• H [Insurance Benefits Withheld]
• I [Retirement Benefits Withheld]
• J [Other Benefits Withheld]
• K [Cash Paid]
• L [Remaining Payable]

——– TRANSACTION SCENARIO OPTIONS FOR SELECTION ——-

Fixed Amount Wages

When to Use – To record a fixed amount of indirect (non-billable) or billable wages paid to employees, usually salaried employees. For salaried fully non-billable employees, this amount is usually fixed with each payroll transaction. For salaried employees that are partially billable, this fixed amount may be variable based on how much of their pay is billable in that period. Use the Timesheet Calculator to assist with calculating suggested fixed amount transactions and hourly transactions for salaried employees.

Relevant Columns

• Dropdown A – Required.

Select from the dropdown list of all labor accounts (both indirect and billable).

• D [Fixed Amount] – Required.

Input a fixed amount of salary to be paid, usually the residual amount owed after separately recording any wages by hours. For example, if the amount usually paid is 5000 in each payroll transaction but 300 has been allocated to billable wages for that payroll, then the fixed amount remaining to be added is 4700.

Do not combine an amount in Fixed Amount with Hours and Hourly Rate in the same transaction row. Any amount entered under the Fixed Amount column overrides any calculation from Hours × Hourly Rate.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• E [Bonuses Paid] – Required if applicable.

Input the amount in bonuses to be paid. Increases the total amount earned.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• F [Commissions Paid] – Required if applicable.

Input the amount in commissions to be paid. Increases the total amount earned.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• G [Tax Withheld] – Required if applicable.

Input the amount to be deducted by the company from the employee’s income to be paid directly to the government. Adds to the Payroll Tax Withholdings payable account and reduces the amount payable to the employee.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• H [Insurance Benefits Withheld] – Required if applicable.

Input the amount to be deducted by the company from the employee’s income to be paid to an insurance company. Usually occurs when the employee contributes to the insurance benefits cost, such as health benefit insurance. Adds to the Insurance Benefits Payable account and reduces the amount payable to the employee.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• I [Retirement Benefits Withheld] – Required if applicable.

Input the amount to be deducted by the company from the employee’s income to be paid to a retirement benefits company. Usually occurs when the employee contributes to the retirement benefits cost, such as a retirement plan. Adds to the Insurance Retirement Benefits Payable account and reduces the amount payable to the employee.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• J [Other Benefits Withheld] – Required if applicable.

Input the amount to be deducted by the company from the employee’s income to be paid to some other benefits company that does not fall under insurance benefits or retirement benefits. Adds to the Other Benefits Payable account and reduces the amount payable to the employee.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• K [Cash Paid] – Required.

Input the initial amount of cash paid to the employee when recording the transaction. The remaining amount due becomes a balance on Wages Payable (default for indirect employees) or Accounts Payable (default for consultants or billable labor).

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• L [Remaining Payable] – Required.

Input the remaining amount due to the employee after any initial cash paid at the time of the recording. Adds to the balance on Wages Payable (default for indirect employees) or Accounts Payable (default for consultants or billable labor).

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: Dropdown A, D + E + F – G – H – I – J = Check 1 = K + L
• Reverse/Adjust: Dropdown A, (D) + (E) + (F) – (G) – (H) – (I) – (J) = Check 1 = (K) + (L)

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount.

 For Add/New Action Type:

[Fixed Amount] + [Bonuses Paid] + [Commissions Paid] – [Tax Withheld] – [Insurance Benefits Withheld – [Retirement Benefits Withheld] – [Other Benefits Withheld] = Check 1 [Total Payable] = [Cash Paid] + [Remaining Payable]

 For Reverse/Adjust Action Type:

Hourly Wages

When to Use – To record hourly indirect (non-billable) or billable wages paid based on hourly rates. For salaried fully non-billable employees, use the Fixed Amount Wages action instead to skip inputting hours. Use the Timesheet Calculator to assist with calculating combinations of fixed amount transactions and hourly transactions for salaried employees.

The Payroll & Wages module records cost only, not revenue. Billable revenue earned by employees should be separately captured in the Sales module using an Add/New Non-Inventory Sales Revenue transaction and selecting a revenue account such as Commission Revenue, Contract Revenue or Service Revenue from Dropdown A.

Relevant Columns

• Dropdown A – Required.

Select from the dropdown list of all labor accounts (both indirect and billable).

• A [Hours] – Required.

Input the number of non-billable hours of work to compensate.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• B [Hourly Rate] – Required.

Input the hourly rate for the work being compensated.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• E [Bonuses Paid] – Required if applicable.

Input the amount in bonuses to be paid. Increases the total amount earned.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• F [Commissions Paid] – Required if applicable.

Input the amount in commissions to be paid. Increases the total amount earned.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• G [Tax Withheld] – Required if applicable.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• H [Insurance Benefits Withheld] – Required if applicable.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• I [Retirement Benefits Withheld] – Required if applicable.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• J [Other Benefits Withheld] – Required if applicable.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• K [Cash Paid] – Required.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• L [Remaining Payable] – Required.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: Dropdown A, [B × C] + E + F – G – H – I – J = Check 1 = K + L
• Reverse/Adjust: Dropdown A, -[(B) × (C)] + (E) + (F) – (G) – (H) – (I) – (J) = Check 1 = (K) + (L)

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount.

 For Add/New Action Type:

( [Hours] × [Hourly Rate] ) + [Bonuses Paid] + [Commissions Paid] – [Tax Withheld] – [Insurance Benefits Withheld – [Retirement Benefits Withheld] – [Other Benefits Withheld] = Check 1 [Total Payable] = [Cash Paid] + [Remaining Payable]

 For Reverse/Adjust Action Type:

– ( [Hours] × [Hourly Rate] ) + [Bonuses Paid] + [Commissions Paid] – [Tax Withheld] – [Insurance Benefits Withheld – [Retirement Benefits Withheld] – [Other Benefits Withheld] = Check 1 [Total Payable] = [Cash Paid] + [Remaining Payable]

INVENTORY & ASSETS MODULE

Purpose

Accounting module to record inventory and asset purchases, inventory development, depreciation and amortization, sale or disposal of assets, inventory write-offs, and inventory or asset contributions, gifts and donations.

Module Columns

• Dropdown A
• Product ID Name
• Product ID Name (From)
• B [Quantity]
• C [Default Account Unit Value]
• D [VAT]
• E [GST]
• F [Accumulated Depreciation]
• G [Cash Paid]
• H [Remaining Payable]

——– TRANSACTION SCENARIO OPTIONS FOR SELECTION ——-

Asset or Inventory Purchase

When to Use – To record the purchase of assets for use or the purchase of inventory and products for sale. Consider using the supplementary INVENTORY MANAGER to help track all inventory purchases and sales and automatically calculate Cost of Goods Sold under First-In, First-Out (FIFO) or Weighted Average (WA) cost methods.

Relevant Columns

• Dropdown A – Required.

Select an inventory account or asset account from the dropdown options.

• Product ID Name – Optional if applicable.

Select inventory or product from the dropdown options to help track quantity. Inventory and products are set up in the Product & Inventory Lookup tab.

• B [Quantity] – Required.

Input the quantity of the inventory product or asset. Alternatively, a representative quantity of 1 can be input in place of actual quantity for the purpose of determining overall value.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• C [Default Account Unit Value] – Required.

Input the unit value of each inventory or asset purchased, not including VAT or GST if registered. If not registered for VAT or GST, the unit purchase amount should be recorded for the expense. If a representative quantity of 1 was input in the previous column, then input the overall value attributed to the transaction, not including VAT or GST.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• D [VAT] – Required if applicable.

Input the amount of VAT (Value-Added Tax) from the purchase. Can be used to claim credits against VAT/GST collected on sales for VAT-registered businesses.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• E [GST] – Required if applicable.

Input the amount of GST (Goods and Services Tax) from the purchase. Can be used to claim credits against VAT/GST collected on sales for GST-registered businesses.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• G [Cash Paid] – Required.

Input the initial amount of cash paid when recording the purchase. The remaining amount due becomes a balance on a payable account.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• H [Remaining Payable] – Required.

Input the remaining amount due after any initial cash paid at the time of the expense recording. Adds to the balance on a payable account.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: Dropdown A, Product ID Name, [B × C] + D + E = Check 2 = G + H
• Reverse/Adjust: Dropdown A, Product ID Name, -[(B) × (C)] + (D) + (E) = Check 2 = (G) + (H)

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount.

 For Add/New Action Type:

( [Quantity] × [Default Account Unit Value] ) + [VAT] + [GST] = Check 2 [Invoice Total] = [Cash Paid] + [Remaining Payable]

 For Reverse/Adjust Action Type:

– ( [Quantity] × [Default Account Unit Value] ) + [VAT] + [GST] = Check 2 [Invoice Total] = [Cash Paid] + [Remaining Payable]

Depreciation or Amortization of Asset

When to Use – To record the depreciation or amortization of assets over time, reflecting the reduction in value of the asset due to wear, tear or obsolescence. The amount of depreciation or amortization becomes recognized as an expense. No cash movement is recorded at this time.

Relevant Columns

• Dropdown A – Required.

Select an asset account from the dropdown options.

• B [Quantity] – Required.

Input the quantity of the asset being depreciated or amortized, or use a representative quantity of 1 in place of actual quantity for the purpose of determining overall value.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• C [Default Account Unit Value] – Required.

Input the amount of depreciation or amortization to recognize on the asset selected. Cannot exceed the remaining value of the asset on the balance sheet. Note that Land cannot be depreciated.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: Dropdown A, B × C = Check 1
• Reverse/Adjust: Dropdown A, (B) × (C) = Check 1

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount.

 For Add/New Action Type:

[Quantity] × [Default Account Unit Value] = Check 1 [Default Account Total]

 For Reverse/Adjust Action Type:

[Quantity] × [Default Account Unit Value] = Check 1 [Default Account Total]

Sale or Disposal of Asset

When to Use – To record the sale or disposal of assets and any capital gain or loss from the transaction. If donating an asset, use the Asset Donation Expense (Other Expense) transaction instead.

Relevant Columns

• Dropdown A – Required.

Select an asset account from the dropdown options.

• B [Quantity] – Required.

Input the quantity of the asset being sold or disposed of, or use a representative quantity of 1 in place of actual quantity for the purpose of determining overall value.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• C [Default Account Unit Value] – Required.

Input the full original unit value of each asset being sold or disposed of. If a representative quantity of 1 was input in the previous column, then input the overall value of the asset being sold or disposed. This value should match the original unit value when added to assets on the balance sheet. For example, if a computer worth 2500 was added as an asset purchase (not including tax), then the same computer being sold or disposed of would also have 2500 input as Default Account Unit Value.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• F [Accumulated Depreciation] – Required.

Input the total sum of depreciation recorded for the asset since it was purchased. This contra-asset amount can be found as a negative balance on the Balance Sheet and should not exceed the total AD (accumulated depreciation) amount for the asset being sold or disposed. Note that Land cannot be depreciated.

 Add/New Signage: Negative amount
 Reverse/Adjust Signage: Positive amount

• G [Cash Paid] – Required.

Input the initial amount of cash received for the asset when recording the sale. The remaining amount due becomes a balance on a receivable account. For disposals, the cash amount should be 0 or blank.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• H [Remaining Payable] – Required.

Input the remaining amount receivable after any initial cash received at the time of the sale. Adds to the balance on a receivable account. For disposals, the amount receivable should be 0 or blank.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• Gain/Loss – Automated.

The automated calculation determines whether a capital gain or loss should be recognized as part of the sale or disposal of the asset. When the asset is sold/disposed for an amount less than the remaining value of the asset—which is the original asset value less accumulated depreciation—then a capital loss is recognized as other expense. When the asset is sold/disposed for an amount greater than the remaining value of the asset, then a capital gain is recognized as other income.

Column Input Requirements

• Add/New: Dropdown A, – [ [B × C] + (F) ] + G + H = Check 3
• Reverse/Adjust: Dropdown A, – [ -[(B) × (C)] + F ] + (G) + (H) = Check 3

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount.

 For Add/New Action Type:

– ( ( [Quantity] × [Default Account Unit Value] ) + [Accumulated Depreciation] ) + [Cash Paid] + [Remaining Payable] = Check 3 [Gain/Loss]

 For Reverse/Adjust Action Type:

– ( – ( [Quantity] × [Default Account Unit Value] ) + [Accumulated Depreciation] ) + [Cash Paid] + [Remaining Payable] = Check 3 [Gain/Loss]

Transition of Short-Term Prepaid to Actual Asset or Inventory

When to Use – To officially record the purchase and receipt of assets or inventory that were recorded in a prior period as a Prepaid Expense. This can be a one-time clearing of the total prepayment, or a partial clearing of prepayment for extended deliveries over time (such as recognizing a partial shipment of inventory from a supplier). No cash movement is recorded at this time.

Relevant Columns

• Dropdown A – Required.

Select an inventory account or asset account from the dropdown options.

• Product ID Name – Optional if applicable.

Select inventory or product from the dropdown options to help track quantity. Inventory and products are set up in the Product & Inventory Lookup tab.

• B [Quantity] – Required.

Input the quantity of the inventory product or asset. Alternatively, a representative quantity of 1 can be input in place of actual quantity for the purpose of determining overall value.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• C [Default Account Unit Value] – Required.

Input the unit value of each inventory or asset purchased, not including VAT or GST if registered. If not registered for VAT or GST, the unit purchase amount should be recorded for the purchase. If a representative quantity of 1 was input in the previous column, then input the overall value attributed to the transaction, not including VAT or GST.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• D [VAT] – Required if applicable.

Input the amount of VAT (Value-Added Tax) from the purchase. Can be used to claim credits against VAT/GST collected on sales for VAT-registered businesses.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• E [GST] – Required if applicable.

Input the amount of GST (Goods and Services Tax) from the purchase. Can be used to claim credits against VAT/GST collected on sales for GST-registered businesses.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: Dropdown A, Product ID Name, [B × C ]+ D + E = Check 2
• Reverse/Adjust: Dropdown A, Product ID Name, -[(B) × (C)] + (D) + (E) = Check 2

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount.

 For Add/New Action Type:

( [Quantity] × [Default Account Unit Value] ) + [VAT] + [GST] = Check 2 [Invoice Total]

 For Reverse/Adjust Action Type:

– ( [Quantity] × [Default Account Unit Value] ) + [VAT] + [GST] = Check 2 [Invoice Total]

Work-in-Process Inventory from Raw Materials Inventory

When to Use – To record the transition to Work-in-Process Inventory from Raw Materials Inventory. Used to track production costs and progress in production processes.

Relevant Columns

• Product ID Name – Optional if applicable.

Select the specific Work-in-Process Inventory being created from the dropdown options. Helpful if tracking the value of particular Work-in-Process Inventory. Products and inventory are set up in the Product & Inventory Lookup tab.

• Product ID Name (From) – Optional if applicable.

Select the specific Raw Materials Inventory being used from the dropdown options. Helpful if tracking the value of particular Raw Materials Inventory. Products and inventory are set up in the Product & Inventory Lookup tab.

• B [Quantity] – Required.

Input the quantity of the inventory product produced. Alternatively, a representative quantity of 1 can be input in place of actual quantity for the purpose of determining overall value.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• C [Default Account Unit Value] – Required.
Input the value of Work-in-Process Inventory created from Raw Materials Inventory.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: Product ID Name, Product ID Name (From), B × C = Check 1
• Reverse/Adjust: Product ID Name, Product ID Name (From), -[(B) × (C)] = Check 1

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount.

 For Add/New Action Type:

[Quantity] × [Default Account Unit Value] = Check 1 [Default Account Total]

 For Reverse/Adjust Action Type:

– ( [Quantity] × [Default Account Unit Value] ) = Check 1 [Default Account Total]

Finished Product Inventory from Raw Materials Inventory

When to Use – To record the transition to Finished Inventory directly from Raw Materials Inventory, skipping any Work-in-Process inventory. Helps determine the value of Cost of Goods Sold (COGS) if later sold.

Relevant Columns

• Product ID Name – Optional if applicable.

Select the specific Finished Inventory being created from the dropdown options. Helpful if tracking the value of particular Finished Inventory. Products and inventory are set up in the Product & Inventory Lookup tab.

• Product ID Name (From) – Optional if applicable.

• B [Quantity] – Required.

Input the quantity of the Finished Inventory (products ready for sale) created.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• C [Default Account Unit Value] – Required.

Input the unit value of Finished Inventory created, to be multiplied by the quantity produced. Reduces the Raw Materials Inventory by the same amount, and becomes part of Cost of Goods Sold (COGS) when the product is sold.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: Product ID Name, Product ID Name (From), B × C = Check 1
• Reverse/Adjust: Product ID Name, Product ID Name (From), -[(B) × (C)] = Check 1

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount.

 For Add/New Action Type:

[Quantity] × [Default Account Unit Value] = Check 1 [Default Account Total]

 For Reverse/Adjust Action Type:

– ( [Quantity] × [Default Account Unit Value] ) = Check 1 [Default Account Total]

Finished Product Inventory from Work-in-Process Inventory

When to Use – To record the transition to Finished Inventory from Work-in-Process Inventory. Helps determine the value of Finished Inventory as Cost of Goods Sold (COGS).

Relevant Columns

• Product ID Name – Optional if applicable.

• Product ID Name (From) – Optional if applicable.

Select the specific Work-in-Process Inventory being used from the dropdown options. Helpful if tracking the value of particular Work-in-Process Inventory. Products and inventory are set up in the Product & Inventory Lookup tab.

• B [Quantity] – Required.

Input the quantity of the Finished Inventory (products ready for sale) created.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• C [Default Account Unit Value] – Required.

Input the unit value of Finished Inventory created, to be multiplied by the quantity produced. Reduces the Work-in-Process Inventory by the same amount, and becomes part of Cost of Goods Sold (COGS) when the product is sold.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: Product ID Name, Product ID Name (From), B × C = Check 1
• Reverse/Adjust: Product ID Name, Product ID Name (From), -[(B) × (C)] = Check 1

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount.

 For Add/New Action Type:

[Quantity] × [Default Account Unit Value] = Check 1 [Default Account Total]

 For Reverse/Adjust Action Type:

– ( [Quantity] × [Default Account Unit Value] ) = Check 1 [Default Account Total]

Write-Off of Raw Materials Inventory

When to Use – To remove the value of unsellable, damaged, stolen or obsolete Raw Materials Inventory stock from the balance sheet. This value adds to the Inventory Write-off Expense.

Relevant Columns

• Product ID Name – Optional if applicable.

Select the specific Raw Materials Inventory being removed from the dropdown options. Products and inventory are set up in the Product & Inventory Lookup tab.

• B [Quantity] – Required.

Input the quantity of Raw Materials Inventory being removed. Alternatively, a representative quantity of 1 can be input in place of actual quantity for the purpose of determining overall value.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• C [Default Account Unit Value] – Required.

Input the unit value of Raw Materials Inventory to be removed. If a representative quantity of 1 was input in the previous column, then input the overall value of the Inventory being removed.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: Product ID Name, B × C = Check 1
• Reverse/Adjust: Product ID Name, -[(B) × (C)] = Check 1

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount.

 For Add/New Action Type:

[Quantity] × [Default Account Unit Value] = Check 1 [Default Account Total]

 For Reverse/Adjust Action Type:

– ( [Quantity] × [Default Account Unit Value] ) = Check 1 [Default Account Total]

Write-Off of Work-in-Process Inventory

When to Use – To remove the value of unsellable, damaged, stolen or obsolete Work-in-Process inventory stock from the balance sheet. This value adds to the Inventory Write-off Expense.

Relevant Columns

• Product ID Name – Optional if applicable.

Select the specific Work-in-Process Materials Inventory being removed from the dropdown options. Products and inventory are set up in the Product & Inventory Lookup tab.

• B [Quantity] – Required.

Input the quantity of Work-in-Process Inventory being removed. Alternatively, a representative quantity of 1 can be input in place of actual quantity for the purpose of determining overall value.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• C [Default Account Unit Value] – Required.

Input the unit value of Work-in-Process Inventory to be removed. If a representative quantity of 1 was input in the previous column, then input the overall value of the Inventory being removed.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: Product ID Name, B × C = Check 1
• Reverse/Adjust: Product ID Name, -[(B) × (C)] = Check 1

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount.

 For Add/New Action Type:

[Quantity] × [Default Account Unit Value] = Check 1 [Default Account Total]

 For Reverse/Adjust Action Type:

– ( [Quantity] × [Default Account Unit Value] ) = Check 1 [Default Account Total]

Write-Off of Finished Product Inventory

When to Use – To remove the value of unsellable, damaged, stolen or obsolete Finished Inventory stock from the balance sheet. This value adds to the Inventory Write-off Expense.

Relevant Columns

• Product ID Name – Required.

Select the specific Finished Inventory product being removed from the dropdown options. Products and inventory are set up in the Product & Inventory Lookup tab.

• B [Quantity] – Required.

Input the quantity of the Finished Inventory products being removed from stock.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• C [Default Account Unit Value] – Required.

Input the unit production or acquisition cost of Finished Inventory to be removed.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: Product ID Name, B × C = Check 1
• Reverse/Adjust: Product ID Name, -[(B) × (C)] = Check 1

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount.

 For Add/New Action Type:

[Quantity] × [Default Account Unit Value] = Check 1 [Default Account Total]

 For Reverse/Adjust Action Type:

– ( [Quantity] × [Default Account Unit Value] ) = Check 1 [Default Account Total]

Free Inventory Promotion Expense

When to Use – To record free item giveaways as a Marketing – Inventory Giveaway expense. The production or acquisition cost of the gifted inventory is deducted from the inventory value balance.

Relevant Columns

• Product ID Name – Required. Determines whether the inventory is Finished, Work-in-Process or Raw.

Select an inventory product from the dropdown list. Products and services are set up in the Product & Inventory Lookup tab.

• B [Quantity] – Required.

Input the quantity of the inventory product given away.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• C [Default Account Price] – Required.

Input the unit production or acquisition cost of each inventory product given away.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: Product ID Name, B × C = Check 1
• Reverse/Adjust: Product ID Name, -[(B) × (C)] = Check 1

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount.

 For Add/New Action Type:

[Quantity] × [Default Account Unit Value] = Check 1 [Default Account Total]

 For Reverse/Adjust Action Type:

– ( [Quantity] × [Default Account Unit Value] ) = Check 1 [Default Account Total]

Inventory Program Expense (Core Expense)

When to Use – To record inventory distributions as part of the core mission of your business or organization, such as distributing food supplies to shelters under the Program Expense – Inventory account. The production or acquisition cost of the distributed inventory is deducted from the inventory value balance. For promotional giveaways (free inventory giveaways), use the Free Inventory Promotion Expense transaction instead. For inventory donations, use Inventory Donation Expense (Other Expense) transaction instead.

Relevant Columns

• Product ID Name – Required. Determines whether the inventory is Finished, Work-in-Process or Raw.

Select an inventory product from the dropdown list. Products and services are set up in the Product & Inventory Lookup tab.

• B [Quantity] – Required.

Input the quantity of the inventory product being distributed from stock.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• C [Default Account Unit Value] – Required.

Input the unit cost of production or acquisition cost of the inventory product to be distributed.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: Product ID Name, B × C = Check 1
• Reverse/Adjust: Product ID Name, -[(B) × (C)] = Check 1

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount.

 For Add/New Action Type:

[Quantity] × [Default Account Unit Value] = Check 1 [Default Account Total]

 For Reverse/Adjust Action Type:

– ( [Quantity] × [Default Account Unit Value] ) = Check 1 [Default Account Total]

In-Kind Contribution – Inventory (Core Revenue)

When to Use – To record the in-kind receipt of inventory production materials and sellable or distributable inventory and supplies as part of your business or organization’s core mission. For example, an organization that distributes food to the homeless receives food supplies from donors. Adds to In-Kind Contributions – Inventory Supplies on the Income Statement (revenue) and to Inventory Assets on the Balance Sheet.

Relevant Columns

• Product ID Name – Required. Determines whether the inventory is Finished, Work-in-Process or Raw.

Select an inventory product from the dropdown list. Products and services are set up in the Product & Inventory Lookup tab.

• B [Quantity] – Required.

Input the quantity of the product contributed. A representative quantity of 1 can be input in place of actual quantity for the purpose of determining overall value.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• C [Default Account Unit Value] – Required.

Input the donor’s unit cost or unit fair market value of the contributed inventory. Used to help calculate Cost of Goods Sold (COGS) if later sold, or inventory value for Program Expense – Inventory.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: Product ID Name, B × C = Check 1
• Reverse/Adjust: Product ID Name, -[(B) × (C)] = Check 1

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount.

 For Add/New Action Type:

[Quantity] × [Default Account Unit Value] = Check 1 [Default Account Total]

 For Reverse/Adjust Action Type:

– ( [Quantity] × [Default Account Unit Value] ) = Check 1 [Default Account Total]

In-Kind Contribution – Assets (Core Revenue)

When to Use – To record the in-kind receipt of usable assets from donors as part of the core mission of your business or organization. For example, an organization receives computers from a donor to facilitate their non-profit mission. Adds to In-Kind Contribution – Assets on the Income Statement (revenue) and to Assets on the Balance Sheet.

Relevant Columns

• Dropdown A – Required.

Select an asset account from the dropdown options.

• B [Quantity] – Required.

Input the quantity of the asset contributed. A representative quantity of 1 can be input in place of actual quantity for the purpose of determining overall value.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• C [Default Account Unit Value] – Required.

Input the donor’s unit cost or unit fair market value of the contributed asset.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: Dropdown A, B × C = Check 1
• Reverse/Adjust: Dropdown A, -[(B) × (C)] = Check 1

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount.

 For Add/New Action Type:

[Quantity] × [Default Account Unit Value] = Check 1 [Default Account Total]

 For Reverse/Adjust Action Type:

– ( [Quantity] × [Default Account Unit Value] ) = Check 1 [Default Account Total]

Inventory Donation Expense (Other Expense)

When to Use – To record inventory donations from the business to a third party, such as donations to a fundraising event, as a Charitable Contribution Expense – Inventory. The production or acquisition cost of the donated inventory is deducted from the inventory value balance. For promotional giveaways (free inventory giveaways), use the Free Inventory Promotion Expense transaction instead. For program expense inventory distributions, use the Inventory Program Expense (Core Expense) transaction instead.

Relevant Columns

• Product ID Name – Required. Determines whether the inventory is Finished, Work-in-Process or Raw.

Select an inventory product from the dropdown list. Products and services are set up in the Product & Inventory Lookup tab.

• B [Quantity] – Required.

Input the quantity of the inventory product being donated from stock.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• C [Default Account Unit Value] – Required.

Input the unit cost of production or acquisition cost of the inventory product to be donated.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: Product ID Name, B × C = Check 1
• Reverse/Adjust: Product ID Name, -[(B) × (C)] = Check 1

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount.

 For Add/New Action Type:

[Quantity] × [Default Account Unit Value] = Check 1 [Default Account Total]

 For Reverse/Adjust Action Type:

– ( [Quantity] × [Default Account Unit Value] ) = Check 1 [Default Account Total]

Gifts-in-Kind – Inventory (Other Income)

When to Use – To record the non-core (outside of your core mission) receipt of usable inventory production materials or finished sellable inventory as a gift from a third party. For example, a company that sells tables receives a gift of fine wood (a raw material) from a donor, used to create the finished products for sale. Adds to Gifts In-Kind – Inventory on the Income Statement (other income) and to Assets on the Balance Sheet.

Relevant Columns

• Product ID Name – Required. Determines whether the inventory is Finished, Work-in-Process or Raw.

Select an inventory product from the dropdown list. Products and services are set up in the Product & Inventory Lookup tab.

• B [Quantity] – Required.

Input the quantity of the product contributed. A representative quantity of 1 can be input in place of actual quantity for the purpose of determining overall value.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• C [Default Account Unit Value] – Required.

Input the donor’s unit cost or unit fair market value of the contributed inventory. Used to help calculate Cost of Goods Sold (COGS) if later sold.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: Product ID Name, B × C = Check 1
• Reverse/Adjust: Product ID Name, -[(B) × (C)] = Check 1

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount.

 For Add/New Action Type:

[Quantity] × [Default Account Unit Value] = Check 1 [Default Account Total]

 For Reverse/Adjust Action Type:

– ( [Quantity] × [Default Account Unit Value] ) = Check 1 [Default Account Total]

Asset Donation Expense (Other Expense)

When to Use – To record the donation of a fixed asset, recognizing any residual value on the asset as a Charitable Contribution Expense – Asset. Works similarly to Sale or Disposal of Asset without any expectation of cash.

Relevant Columns

• Dropdown A – Required.

Select an asset account from the dropdown options.

• B [Quantity] – Required.

Input the quantity of the asset being donated, or use a representative quantity of 1 in place of actual quantity for the purpose of determining overall value.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• C [Default Account Unit Value] – Required.

Input the full original unit value of each asset being donated. If a representative quantity of 1 was input in the previous column, then input the overall value of the asset being sold or disposed. This value should match the original unit value when added to assets on the balance sheet. For example, if a computer worth 2500 was added as an asset purchase (not including tax), then the same computer being donated would also have 2500 input as Default Account Unit Value.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• F [Accumulated Depreciation] – Required.

 Add/New Signage: Negative amount
 Reverse/Adjust Signage: Positive amount

• Gain/Loss – Automated.

The automated calculation determines the residual value on the asset which would be recognized as a Charitable Donation Expense – Asset instead of a capital loss. If the asset donated is already fully depreciated, then the donation expense would be 0.

Column Input Requirements

• Add/New: Dropdown A, – [ B × C + (F) ] = Check 3
• Reverse/Adjust: Dropdown A, – [ (B) × (C) + F ] = Check 3

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount.

 For Add/New Action Type:

– ( [Quantity] × [Default Account Unit Value] + [Accumulated Depreciation] ) = Check 3 [Gain/Loss]

 For Reverse/Adjust Action Type:

– ( [Quantity] × [Default Account Unit Value] + [Accumulated Depreciation] ) = Check 3 [Gain/Loss]

Gifts-in-Kind – Assets (Other Income)

When to Use – To record the non-core (outside of your core mission) receipt of usable assets as a gift from a third party. For example, a company receives a gift of premium office furniture from a donor. Adds to Gifts In-Kind – Assets on the Income Statement (other income) and to Assets on the Balance Sheet.

Relevant Columns

• Dropdown A – Required.

Select an asset account from the dropdown options.

• B [Quantity] – Required.

Input the quantity of the asset gifted. A representative quantity of 1 can be input in place of actual quantity for the purpose of determining overall value.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• C [Default Account Unit Value] – Required.

Input the donor’s unit cost or unit fair market value of the gifted asset.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: Dropdown A, B × C = Check 1
• Reverse/Adjust: Dropdown A, -[(B) × (C)] = Check 1

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount.

 For Add/New Action Type:

[Quantity] × [Default Account Unit Value] = Check 1 [Default Account Total]

 For Reverse/Adjust Action Type:

– ( [Quantity] × [Default Account Unit Value] ) = Check 1 [Default Account Total]

LOANS MODULE

Purpose

Accounting module to record short-term and long-term loans, as well as principal and interest payments. Loans can be issued to the company (such as from a bank) or from the company to a third party. Bad Debt Expense can be added for uncollectable loans made by the company to a third party.

Module Columns

• Dropdown A
• B [Default Account Value]
• C [Interest Amount]
• D [Cash Paid]
• E [Principal Payable]
• F [Interest Payable]

——– TRANSACTION SCENARIO OPTIONS FOR SELECTION ——-

Short-Term (ST) Loan Payable

When to Use – To record cash inflow for a new short-term loan, to be repaid by the company or organization within 12 months. Follow up with Principal and Interest Expense on ST Loan Payable.

Relevant Columns

• Dropdown A – Required.

Select a loan type from the dropdown list.

• B [Default Account Value] – Required.

Input the loan amount received (principal), which is recorded as a cash inflow.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: Dropdown A, B
• Reverse/Adjust: Dropdown A, (B)

Double Entry Checks

 N/A

Principal and Interest Expense on ST Loan Payable

When to Use – To record the repayment of principal (amount still owed on a loan) and interest on a short-term loan, or the accrued interest on a Convertible Note. If repaying part of a long-term loan, use the Principal and Interest Expense on Current Portion of LT Loan Payable transaction instead.

Relevant Columns

• Dropdown A – Required.

Select the relevant loan type from the dropdown list.

• B [Default Account Value] – Required.

Input the amount of principal (from the original loan balance) being paid as part of the short-term loan payment. Skip for Convertible Notes.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• C [Interest Amount] – Required.

Input the amount of Interest Expense being paid as part of the short-term loan payment. For convertible notes, Interest Expense corresponds to the amount of accrued interest.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• D [Cash Paid] – Required.

Input the initial amount of cash paid (outflow) when recording the short-term loan payment. The remaining amount due becomes a balance on the Loans Payable (principal) or Interest Payable account(s). Skip for Convertible Notes.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• E [Principal Payable] – Required.

Input the remaining amount of principal owed on the payment after any initial cash payment at the time of the short-term loan payment recording. Adds to the balance on Loans Payable. If the entire loan payment due was paid in cash, this amount would be 0 or blank. Skip for Convertible Notes.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• F [Interest Payable] – Required if applicable.

Input the remaining amount of interest owed on the payment after any initial cash payment at the time of the loan payment recording. Adds to the balance on Interest Payable. If the entire loan payment due was paid in cash, this amount would be 0 or blank. For convertible notes, Interest Payable represents accrued interest on the note.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: Dropdown A, B + C = Check 1 = D + E + F = Check 2
• Reverse/Adjust: Dropdown A, (B) + (C) = Check 1 = (D) + (E) + (F) = Check 2

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount.

 For Add/New Action Type:

[Default Account Value] + [Interest Payment] = Check 1 [Total Due] = [Cash Paid] + [Principal Payable] + [Interest Payable] = Check 2 [Total Payment]

 For Reverse/Adjust Action Type:

[Default Account Value] + [Interest Payment] = Check 1 [Total Due] = [Cash Paid] + [Principal Payable] + [Interest Payable] = Check 2 [Total Payment]

Long-Term (LT) Loan Payable

When to Use – To record cash inflow for a new long-term loan, to be repaid by the company in a timeframe beyond 12 months.

The subsequent handling of long-term loans requires the following steps.

1) Immediately after recording the total principal of the new long-term loan, record an initial Transition LT Loan Payable to Current Portion of LT Loan Payable transaction to designate the amount of the long-term loan that is due within 12 months. For every month that a portion of the long-term loan remains due beyond 12 months, a Transition LT Loan Payable to Current Portion of LT Loan Payable transaction for the amount of long-term loan principal that gets moved to a current portion (due within 12 months) should be recorded monthly. For example, if the 13th month amount of 1500 due is now due within 12 months, that 1500 should be transitioned to a Current Portion of Long-term Debt (CPLTD) account

2) When repaying the long-term loan, use the Principal and Interest Expense on Current Portion of LT Loan Payable transaction which is applicable for long-term loans instead of the short-term Principal and Interest Expense on ST Loan Payable.

Relevant Columns

• Dropdown A – Required.

Select a loan type from the dropdown list.

• B [Default Account Value] – Required.

Input the loan amount received (principal), which is recorded as a cash inflow.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: Dropdown A, B
• Reverse/Adjust: Dropdown A, (B)

Double Entry Checks

 N/A

Transition LT Loan Payable to Current Portion of LT Loan Payable

When to Use – To record the amount on a long-term loan that is now due within 12 months, moving the long-term amount to a current portion of loan payable. This step should be repeated monthly with the 13th month amount until the entire remaining principal balance of the long-term loan is classified as due within 12 months.

When repaying the long-term loan, use the Principal and Interest Expense on Current Portion of LT Loan Payable transaction which is applicable for long-term loans instead of the short-term Principal and Interest Expense on ST Loan Payable.

Relevant Columns

• Dropdown A – Required.

Select the relevant loan type from the dropdown list.

• B [Default Account Value] – Required.

Input the long-term loan amount to be designated as part of the current portion due within 12 months. Adds to the relevant Current Portion of Long-Term Debt (CPLTD) account while reducing the balance on the relevant Long-Term Debt account.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: Dropdown A, B
• Reverse/Adjust: Dropdown A, (B)

Double Entry Checks

 N/A

Principal and Interest Expense on Current Portion of LT Loan Payable

When to Use – To record the repayment of principal (amount still owed on a loan) and interest on the current portion of long-term loan. If repaying part of a short-term loan, use the Principal and Interest Expense on ST Loan Payable transaction instead.

Relevant Columns

• Dropdown A – Required.

Select a loan type from the dropdown list.

• B [Default Account Value] – Required.

Input the amount of principal (from the original loan balance) being paid as part of the current portion of long-term loan payment. Reduces the balance on the relevant CPLTD account.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• C [Interest Amount] – Required.

Input the amount of Interest Expense being paid as part of the current portion of long-term loan payment.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• D [Cash Paid] – Required.

Input the initial amount of cash paid (outflow) when recording the current portion of long-term loan payment. The remaining amount due becomes a balance on the Loans Payable (principal) or Interest Payable account(s).

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• E [Principal Payable] – Required.

Input the remaining amount of principal owed on the payment after any initial cash payment at the time of the current portion of long-term loan payment recording. Adds to the balance on Loans Payable. If the entire loan payment due was paid in cash, this amount would be 0 or blank.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• F [Interest Payable] – Required if applicable.

Input the remaining amount of interest owed on the payment after any initial cash payment at the time of the current portion of long-term loan payment recording. Adds to the balance on Interest Payable. If the entire loan payment due was paid in cash, this amount would be 0 or blank.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: Dropdown A, B + C = Check 1 = D + E + F = Check 2
• Reverse/Adjust: Dropdown A, (B) + (C) = Check 1 = (D) + (E) + (F) = Check 2

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount.

 For Add/New Action Type:

[Default Account Value] + [Interest Payment] = Check 1 [Total Due] = [Cash Paid] + [Principal Payable] + [Interest Payable] = Check 2 [Total Payment]

 For Reverse/Adjust Action Type:

[Default Account Value] + [Interest Payment] = Check 1 [Total Due] = [Cash Paid] + [Principal Payable] + [Interest Payable] = Check 2 [Total Payment]

Short-Term (ST) Loan from Company (Receivable)

When to Use – To record cash outflow for a new short-term loan (to be repaid to the company within 12 months) given to a third-party by the company. For example, a company may loan an employee money for a family medical emergency. Follow up with Principal and Interest Income on ST Loan Receivable.

Relevant Columns

• B [Default Account Value] – Required.

Input the loan amount (principal) given by the company to the third party, which is recorded as a cash outflow. Adds to the balance on Loans Receivable (Current).

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: B
• Reverse/Adjust: (B)

Double Entry Checks

 N/A

Principal and Interest Income on ST Loan Receivable

When to Use – To record the repayment to the company of principal (amount still owed on a loan) and interest on a short-term loan given by the company to a third party. If repayment is part of a long-term loan given by the company to a third party, use the Principal and Interest Income on Current Portion of LT Loan Receivable transaction instead.

Relevant Columns

• Dropdown A – Required.

Select the relevant loan type from the dropdown list.

• B [Default Account Value] – Required.

Input the amount of principal (from the original loan balance) being repaid to the company by the third party as part of the short-term loan receivable. Reduces the balance on Loans Receivable (Current).

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• C [Interest Amount] – Required.

Input the amount of Interest Income earned by the company as part of the short-term loan repayment.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• D [Cash Paid] – Required.

Input the amount of cash repaid (inflow) to the company by the third party when recording the short-term loan receivable payment.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: B + C = Check 1 = D = Check 3
• Reverse/Adjust: (B) + (C) = Check 1 = (D) = Check 3

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount.

 For Add/New Action Type:

[Default Account Value] + [Interest Payment] = Check 1 [Total Due] = [Cash Paid] = Check 2 [Total Payment]

 For Reverse/Adjust Action Type:

[Default Account Value] + [Interest Payment] = Check 1 [Total Due] = [Cash Paid] = Check 2 [Total Payment]

Long-Term (LT) Loan from Company (Receivable)

When to Use – To record cash outflow for a new long-term loan (receivable) made by the company to a third party, to be repaid in a timeframe beyond 12 months. For example, a company may loan an employee money for a major personal expense like housing.

The subsequent handling of long-term loan receivables requires the following steps.

1) Immediately after recording the total principal of the new long-term loan, record an initial Transition LT Loan Receivable to Current Portion of LT Loan Receivable transaction to designate the amount of the long-term loan that is due within 12 months. For every month that a portion of the long-term loan remains due beyond 12 months, a Transition LT Loan Receivable to Current Portion of LT Loan Receivable transaction for the amount of long-term loan principal that gets moved to a current portion (due within 12 months) should be recorded monthly. For example, if the 13th month amount of 1500 due is now due within 12 months, that 1500 should be transitioned to a Current Portion of Long-term Receivable (CPLTR) account.

2) When repaying the long-term loan, use the Principal and Interest Income on Current Portion of LT Loan Receivable transaction which is applicable for long-term loans instead of the short-term Principal and Interest Income on ST Loan Receivable.

Relevant Columns

• B [Default Account Value] – Required.

Input the loan amount (principal) from the company to the third party, which is recorded as a cash outflow. Adds to the Loans Receivable (Long-Term) balance.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: B
• Reverse/Adjust: (B)

Double Entry Checks

 N/A

Transition LT Loan Receivable to Current Portion of LT Loan Receivable

When to Use – To record the amount on a long-term loan receivable that is now due to the company within 12 months, moving the long-term amount to a current portion of loan receivable. This step should be repeated monthly with the 13th month amount until the entire remaining principal balance of the long-term loan is classified as due within 12 months.

When payments are received for the long-term loan, use the Principal and Interest Income on Current Portion of LT Loan Receivable transaction which is applicable for long-term loans instead of the short-term Principal and Interest Income on ST Loan Receivable.

Relevant Columns

• B [Default Account Value] – Required.

Input the long-term loan receivable amount to be designated as part of the current portion due within 12 months. Adds to the balance on the Loans Receivable (CPLTR) account reducing the balance on Loans Receivable (Long-Term).

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: B
• Reverse/Adjust: (B)

Double Entry Checks

 N/A

Principal and Interest Income on Current Portion of LT Loan Receivable

When to Use – To record the repayment (cash inflow) of principal (amount still owed on a loan) and interest on the current portion of a long-term receivable loan. If the repayment is part of a short-term loan, use the Principal and Interest Income on ST Loan Receivable transaction instead.

Relevant Columns

• B [Default Account Value] – Required.

Input the amount of principal (from the original loan balance) being repaid to the company by the third party as part of the current portion of long-term loan receivable payment. Reduces the balance on Loans Receivable (CPLTR).

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• C [Interest Amount] – Required.

Input the amount of Interest Income being paid to the company by the third party as part of the current portion of long-term loan receivable payment.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• D [Cash Paid] – Required.

Input the initial amount of cash received (inflow) from the third party when recording the current portion of long-term loan receivable repayment.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: B + C = Check 1 = D = Check 3
• Reverse/Adjust: (B) + (C) = Check 1 = (D) = Check 3

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount.

 For Add/New Action Type:

[Default Account Value] + [Interest Payment] = Check 1 [Total Due] = [Cash Paid] = Check 2 [Total Payment]

 For Reverse/Adjust Action Type:

[Default Account Value] + [Interest Payment] = Check 1 [Total Due] = [Cash Paid] = Check 2 [Total Payment]

Write-Off ST Loan from Company (Receivable) as Bad Debt Expense

When to Use – To record an uncollectible short-term loan made by the company to a third party, recognizing it as a Bad Debt Expense and removing the uncollectible loan from the balance sheet.

Relevant Columns

• B [Default Account Value] – Required.

Input the amount of the loan principal that is considered uncollectible. Reduces the balance on Loans Receivable (Current), adding that amount to Bad Debt Expense.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: B
• Reverse/Adjust: (B)

Double Entry Checks

 N/A

Write-Off Current Portion of LT Loan Receivable as Bad Debt Expense

When to Use – To record the current (due within 12 months) portion of a long-term loan made by the company to a third party as uncollectible, recognizing it as a Bad Debt Expense and removing the uncollectible loan from the balance sheet. For long-term loan receivables, both the current portion and the remaining long-term portion should be written off to move the entire loan receivable to Bad Debt. To remove any remaining long-term portion, pair this with a Write-Off LT Loan from Company (Receivable) as Bad Debt Expense transaction.

Relevant Columns

• B [Default Account Value] – Required.

Input the amount of the current portion of long-term loan receivable principal that is considered uncollectible. Reduces the balance on Loans Receivable (CPLTR), adding that amount to Bad Debt Expense.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: B
• Reverse/Adjust: (B)

Double Entry Checks

 N/A

Write-Off LT Loan from Company (Receivable) as Bad Debt Expense

When to Use – To record the remaining long-term (due beyond 12 months) portion of a long-term loan made by the company to a third party as uncollectible, recognizing it as a Bad Debt Expense and removing the uncollectible loan from the balance sheet. For long-term loan receivables, both the current portion and the remaining long-term portion should be written off to move the entire loan receivable to Bad Debt. To remove the short-term portion, pair this with a Write-Off Current Portion of LT Loan Receivable as Bad Debt Expense transaction.

Relevant Columns

• B [Default Account Value] – Required.

Input the remaining amount of the long-term portion of long-term loan receivable that is considered uncollectible. Reduces the balance on Loans Receivable (Long-Term), adding that amount to Bad Debt Expense.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: B
• Reverse/Adjust: (B)

Double Entry Checks

 N/A

EQUITY (NON-STOCK) MODULE

Purpose

Accounting module to record non-stock equity such as owner’s equity and sweat equity. Note that some tax authorities may consider the granting of equity as taxable income, even if no cash has been received by the receiving party for their contributions. Cash draws on equity, either as profit distributions or reductions in an equity account, may also have income tax or capital gains tax implications. Please consult with your accountant or tax advisor for guidance on potential tax implications of granting equity or any draws on equity in the form of cash.

Note that cash draws on equity accounts have their own Add/New transactions, and clearing cash draws by year-end also have Add/New transactions (reducing retained earnings or reducing equity account balances). The Reverse/Adjust option should only be used to correct a prior transaction recording error, not to withdraw cash or reduce equity intentionally.

Module Columns

• Dropdown A
• B [Default Account Value]

——– TRANSACTION SCENARIO OPTIONS FOR SELECTION ——-

Equity Contribution from Owner

When to Use – To record an equity contribution by an owner of the company, whether as cash, assets, or sweat equity contribution in the form of labor or professional services. Applies mainly to sole proprietorships, and less likely to have separate income tax implications due to the combination of personal and business assets.

Relevant Columns

• Dropdown A – Required.

Select an account (cash, asset or sweat equity contribution type) from the dropdown list.

• B [Default Account Value] – Required.

Input the amount or value of the contribution by the owner. This increases the balance on the Owner’s Equity balance sheet account.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: Dropdown A, B
• Reverse/Adjust: Dropdown A, (B)

Double Entry Checks

 N/A

Equity Contribution from Partner

When to Use – To record an equity contribution for a partner of the company, whether as cash, assets, or sweat equity contribution in the form of labor or professional services. Applies mainly to partnership arrangements. Include a Contact ID Name in the transaction to help track partner equity accounts. Consult with your accountant or tax advisor on potential income tax implications for granting equity to partners.

Relevant Columns

• Dropdown A – Required.

Select an account (cash, asset or sweat equity contribution type) from the dropdown list.

• B [Default Account Value] – Required.

Input the amount or value of the contribution by the partner. This increases the balance on the Partner’s Equity balance sheet account.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: Dropdown A, B
• Reverse/Adjust: Dropdown A, (B)

Double Entry Checks

 N/A

Equity Contribution from Member

When to Use – To record an equity contribution by a member of the company, whether as cash, assets, or sweat equity contribution in the form of labor or professional services. Applies mainly to Limited Liability Companies (LLCs) or professional partnerships with more formal, legal structures. Include a Contact ID Name in the transaction to help track member equity accounts. Please consult with your accountant or tax advisor on potential income tax implications for granting equity to members.

Relevant Columns

• Dropdown A – Required.

Select an account (cash, asset or sweat equity contribution type) from the dropdown list.

• B [Default Account Value] – Required.

Input the amount or value of the contribution by the member. This increases the balance on the Member’s Capital Account balance sheet account.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: Dropdown A, B
• Reverse/Adjust: Dropdown A, (B)

Double Entry Checks

 N/A

Owner’s Draw

When to Use – To record the withdrawal of cash from the business as an owner, as either a profit distribution or reduction of equity. Applies mainly to sole proprietorships. Usually is subject to personal income and self-employment taxes as part of the business’s total net profit. Please consult with your accountant or tax advisor for guidance on tax handling for your specific situation.

Owner’s Draw is a contra-equity account that tracks cash withdrawals and should be cleared with a follow-up transaction of either Clearance of Owner’s Draw and Reduction of Profit from Retained Earnings or Clearance of Owner’s Draw and Reduction of Owner’s Equity by year-end.

Relevant Columns

• B [Default Account Value] – Required.

Input the amount of cash being withdrawn. Adds to the contra-equity balance of Owner’s Draw.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: B
• Reverse/Adjust: (B)

Double Entry Checks

 N/A

Partner’s Draw

When to Use – To record the withdrawal of cash from the business as a partner, as either a profit distribution or reduction of equity and separate from salary. Applies mainly to partnership arrangements. Include a Contact ID Name in the transaction to help track partner equity accounts. May be subject to income and self-employment taxes on the partner’s share of the business’s net profit. Please consult with your accountant or tax advisor for guidance on tax handling for your specific situation.

Partner’s Draw is a contra-equity account that tracks cash withdrawals and should be cleared with a follow-up transaction of either Clearance of Partner’s Draw and Reduction of Profit from Retained Earnings or Clearance of Partner’s Draw and Reduction of Partner’s Equity by year-end.

Relevant Columns

• B [Default Account Value] – Required.

Input the amount of cash being withdrawn. Adds to the contra-equity balance of Partner’s Draw.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: B
• Reverse/Adjust: (B)

Double Entry Checks

 N/A

Member’s Draw

When to Use – To record the withdrawal of cash from the business as a member, as either a profit distribution or reduction of equity and separate from salary. Applies mainly to Limited Liability Companies (LLCs) or professional partnerships with more formal, legal structures. Include a Contact ID Name in the transaction to help track member equity accounts. May be subject to income and self-employment taxes on the member’s share of the business’s net profit. Please consult with your accountant or tax advisor for guidance on tax handling for your specific situation.

Member’s Draw is a contra-equity account that tracks cash withdrawals and should be cleared with a follow-up transaction of either Clearance of Member’s Draw and Reduction of Profit from Retained Earnings or Clearance of Member’s Draw and Reduction of Member’s Capital Account by year-end.

Relevant Columns

• B [Default Account Value] – Required.

Input the amount of cash being withdrawn. Adds to the contra-equity balance of Member’s Draw.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: B
• Reverse/Adjust: (B)

Double Entry Checks

 N/A

Clearance of Owner’s Draw and Reduction of Profit from Retained Earnings

When to Use – To clear part or all of the balance on the Owner’s Draw contra-equity account and distinguish the cash withdrawals as profit distributions instead of a reduction of Owner’s Equity. Reduces the balance of Retained Earnings. The Owner’s Draw balance should be cleared and accounted for by year-end or earlier.

Relevant Columns

• B [Default Account Value] – Required.

Input the amount on the Owner’s Draw contra-equity account to clear and distinguish as a profit distribution.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: B
• Reverse/Adjust: (B)

Double Entry Checks

 N/A

Clearance of Partner’s Draw and Reduction of Profit from Retained Earnings

When to Use – To clear part or all of the balance on a Partner’s Draw contra-equity account and distinguish the cash withdrawals as profit distributions instead of a reduction of Partner’s Equity. Reduces the balance of Retained Earnings. Include a Contact ID Name in the transaction to help track partner equity accounts. The Partner’s Draw balance should be cleared and accounted for by year-end or earlier.

Relevant Columns

• B [Default Account Value] – Required.

Input the amount on the Partner’s Draw contra-equity account to clear and distinguish as a profit distribution.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: B
• Reverse/Adjust: (B)

Double Entry Checks

 N/A

Clearance of Member’s Draw and Reduction of Profit from Retained Earnings

When to Use – To clear part or all of the balance on a Member’s Draw contra-equity account and distinguish the cash withdrawals as profit distributions instead of a reduction of a Member’s Capital Account. Reduces the balance of Retained Earnings. Include a Contact ID Name in the transaction to help track member equity accounts. The Member’s Draw balance should be cleared and accounted for by year-end or earlier.

Relevant Columns

• B [Default Account Value] – Required.

Input the amount on the Member’s Draw contra-equity account to clear and distinguish as a profit distribution.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: B
• Reverse/Adjust: (B)

Double Entry Checks

 N/A

Clearance of Owner’s Draw and Reduction of Owner’s Equity

When to Use – To clear part or all of the balance on the Owner’s Draw contra-equity account and distinguish the cash withdrawals as reductions in Owner’s Equity instead of a profit distribution. The Owner’s Draw balance should be cleared and accounted for by year-end or earlier.

Relevant Columns

• B [Default Account Value] – Required.

Input the amount on the Owner’s Draw contra-equity account to clear and distinguish as a reduction in Owner’s Equity.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: B
• Reverse/Adjust: (B)

Double Entry Checks

 N/A

Clearance of Partner’s Draw and Reduction of Partner’s Equity

When to Use – To clear part or all of the balance on a Partner’s Draw contra-equity account and distinguish the cash withdrawals as reductions in Partner’s Equity instead of a profit distribution. Include a Contact ID Name in the transaction to help track partner equity accounts. The Partner’s Draw balance should be cleared and accounted for by year-end or earlier.

Relevant Columns

• B [Default Account Value] – Required.

Input the amount on the Partner’s Draw contra-equity account to clear and distinguish as a reduction in Partner’s Equity.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: B
• Reverse/Adjust: (B)

Double Entry Checks

 N/A

Clearance of Member’s Draw and Reduction of Member’s Capital Account

When to Use – To clear part or all of the balance on a Member’s Draw contra-equity account and distinguish the cash withdrawals as reductions in Member’s Capital Account instead of a profit distribution. Include a Contact ID Name in the transaction to help track member equity accounts. The Member’s Draw balance should be cleared and accounted for by year-end or earlier.

Relevant Columns

• B [Default Account Value] – Required.

Input the amount on the Member’s Draw contra-equity account to clear and distinguish as a reduction in Member’s Capital Account.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: B
• Reverse/Adjust: (B)

Double Entry Checks

 N/A

EQUITY (STOCK) MODULE

Purpose

Accounting module to record stock-based equity. Usually only legal corporations can issue stock to raise capital or provide equity ownership, even internally to employees. Note that tax authorities may consider the granting or selling of stock equity as taxable income, even if no cash has been received by the receiving party. Stock equity and the determination of fair value is inherently complicated with significant legal and tax ramifications. Please consult with your financial and legal experts for guidance on how to proceed with valuing, issuing, tracking and selling stock.

Module Columns

• A [Default Account Value]
• B [Additional Paid-in Capital]
• C [Cash Amount]
• D [Stock Options Value]
• E [Compensation Amount]
• F [Dividends Value]

——– TRANSACTION SCENARIO OPTIONS FOR SELECTION ——-

Restricted Stock as Stock-Based Compensation

When to Use – To record newly vested restricted stock, which are company shares granted to an employee that are now vested but are still subject to specific conditions before they can be converted to common stock and sold. Unvested restricted stock does not need to be recorded at issuance, though a separate tracker is recommended with memos on issuance and vesting schedules and terms. Please consult with your accountant, tax and legal experts for guidance on handling your specific situation.

Once the restrictions are lifted on vested restricted stock, a follow-up transaction of Common Stock Conversion from Restricted Stock should be added to record any conversion to Common Stock.

Relevant Columns

• A [Default Account Value]: Required.

Input the fair market value amount of the vested restricted shares, which becomes the non-cash expense amount added to Compensation – Stock-Based Compensation and adds to the balance on Additional Paid-in Capital – Non-Cash Restricted Stock.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: A
• Reverse/Adjust: (A)

Double Entry Checks

 N/A

Stock Options as Stock-Based Compensation

When to Use – To record newly vested stock options, which represent a right for an employee to purchase company shares at a set price (strike price). Unvested stock options do not need to be recorded at issuance, though a separate tracker is recommended with memos on issuance and vesting schedules and terms. Please consult with your accountant, tax and legal experts for guidance on handling your specific situation.

Once the stock option is exercised, a follow-up transaction of Common Stock Conversion from Exercised Stock Options should be added to record any conversion to Common Stock.

Relevant Columns

• A [Default Account Value]: Required.

Input the fair market value amount of the vested stock options, which is often the exercise price multiplied by the number of stock options. This fair value total becomes the non-cash expense amount added to Compensation – Stock-Based Compensation.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: A
• Reverse/Adjust: (A)

Double Entry Checks

 N/A

Common Stock as Stock-Based Compensation

When to Use – To record Common Stock directly issued to employees, unrestricted by any vesting schedules. If the equity requires vesting or has other restrictions such that an employee cannot immediately sell their shares, then choose the Restricted Stock as Stock-Based Compensation option instead. Please consult with your accountant, tax and legal experts for guidance on handling your specific situation.

Relevant Columns

• A [Default Account Value]: Required.

Input the par value amount of the Common Stock being issued (usually number of shares multiplied by par value).

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• B [Additional Paid-in Capital]: Required if applicable.

Input the amount of excess over par value of the Common Stock on the date of issuance, calculated as fair value of the Common Stock less par value. For example, if the common stock par value amount in Default Account Value is $2000 and fair value is $9000, then Additional Paid-in Capital would be $7000. The $9000 fair value amount becomes the non-cash expense amount added to Compensation – Stock-Based Compensation.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: A + B = Check 1
• Reverse/Adjust: (A) + (B) = Check 1

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount.

 For Add/New Action Type:

[Default Account Value] + [Additional Paid-in Capital] = Check 1 [Total 1 / Fair Value]

 For Reverse/Adjust Action Type:

[Default Account Value] + [Additional Paid-in Capital] = Check 1 [Total 1 / Fair Value]

Common Stock Conversion from Restricted Stock

When to Use – To record the conversion of vested Restricted Stock to Common Stock, which is no longer restricted and can be sold by an employee immediately. The fair value of stock for this conversion entry should match the fair value at the time the corresponding Restricted Stock was vested, even if the stock price has changed since that time. Please consult with your accountant, tax and legal experts for guidance on handling your specific situation.

Relevant Columns

• A [Default Account Value]: Required.

Input the par value amount of the Common Stock being issued (usually number of shares multiplied by par value).

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• B [Additional Paid-in Capital]: Required if applicable.

Input the amount of excess over par value of the Common Stock on the date of conversion, calculated as fair value (at the time it was vested) of the Common Stock less par value. For example, if the common stock par value amount in Default Account Value is $2000 and fair value is $9000, then Additional Paid-in Capital – Common Stock would be $7000. The fair value amount reduces the Restricted Stock balance amount recorded under the equity account Additional Paid-in Capital – Restricted Stock.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: A + B = Check 1
• Reverse/Adjust: (A) + (B) = Check 1

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount.

 For Add/New Action Type:

[Default Account Value] + [Additional Paid-in Capital] = Check 1 [Total 1 / Fair Value]

 For Reverse/Adjust Action Type:

[Default Account Value] + [Additional Paid-in Capital] = Check 1 [Total 1 / Fair Value]

Common Stock Conversion from Exercised Stock Options

When to Use – To record exercised Stock Options, which convert into Common Stock. The fair value of stock for this conversion entry should match the fair value at the time the corresponding Stock Option was vested, even if the stock price has changed since that time. Please consult with your accountant, tax and legal experts for guidance on handling your specific situation.

Relevant Columns

• A [Default Account Value]: Required.

Input the par value amount of the Common Stock being issued (usually number of shares multiplied by par value).

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• B [Additional Paid-in Capital]: Required if applicable.

Input the sum of the original Additional Paid-in Capital over the Common Stock par value plus new Additional Paid-in Capital from cash received for the exercised stock. Can be calculated after filling in Cash Amount and Stock Options Value, and equals the residual of Check 2 less Default Account Value.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• C [Cash Amount]: Required.

Input the amount of cash received from the exercised options, calculated as strike price multiplied by the number of options exercised.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• B [Stock Options Value]: Required.

Input the fair value amount of the exercised Stock Options at the time the corresponding Stock Options were vested and recorded, even if fair value has changed since the initial recording. The fair value amount reduces the original Stock Options balance amount recorded under the equity account Additional Paid-in Capital – Stock Options.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: A + B = Check 1 = C + D = Check 2
• Reverse/Adjust: (A) + (B) = Check 1 = (C) + (D) = Check 2

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount.

 For Add/New Action Type:

[Default Account Value] + [Additional Paid-in Capital] = Check 1 [Total 1 / Fair Value] = [Cash Amount] + [Stock Options Value] = Check 2 [Total 2]

 For Reverse/Adjust Action Type:

[Default Account Value] + [Additional Paid-in Capital] = Check 1 [Total 1 / Fair Value] = [Cash Amount] + [Stock Options Value] = Check 2 [Total 2]

Common Stock Sale for Cash

When to Use – To record the sale (issuance) of Common Stock for cash proceeds. Common stock often offers higher growth potential and voting rights but carries more risk than Preferred Stock. Please consult with your accountant, tax and legal experts for guidance on handling your specific situation.

Relevant Columns

• A [Default Account Value]: Required.

Input the par value amount of the Common Stock being issued (usually number of shares multiplied by par value).

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• B [Additional Paid-in Capital]: Required.

Input the amount of excess over par value of the Common Stock on the date of sale, calculated as the total sale value of the Common Stock less par value. For example, if the Common Stock par value amount in Default Account Value is $2000 and the cash received is $9000, then Additional Paid-in Capital – Common Stock would be $7000.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• C [Cash Amount]: Required.

Input the amount of cash received from the sale of Common Stock, which equals the sum of the par value and any additional paid-in capital.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: A + B = Check 1 = C
• Reverse/Adjust: (A) + (B) = Check 1 = (C)

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount.

 For Add/New Action Type:

[Default Account Value] + [Additional Paid-in Capital] = Check 1 [Total 1 / Fair Value] = [Cash Amount]

 For Reverse/Adjust Action Type:

[Default Account Value] + [Additional Paid-in Capital] = Check 1 [Total 1 / Fair Value] = [Cash Amount]

Preferred Stock Sale for Cash

When to Use – To record the sale (issuance) of Preferred Stock for cash proceeds. Preferred stock usually provides steadier, higher income through fixed dividends and higher claims on assets, typically without voting rights. Please consult with your accountant, tax and legal experts for guidance on handling your specific situation.

Relevant Columns

• A [Default Account Value]: Required.

Input the par value amount of the Preferred Stock being issued (usually number of shares multiplied by par value).

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• B [Additional Paid-in Capital]: Required.

Input the amount of excess over par value of the Preferred Stock on the date of sale, calculated as the total sale value of the Preferred Stock less par value. For example, if the Preferred Stock par value amount in Default Account Value is $2000 and the cash received is $9000, then Additional Paid-in Capital – Preferred Stock would be $7000.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• C [Cash Amount]: Required.

Input the amount of cash received from the sale of Preferred Stock, which equals the sum of the par value and any additional paid-in capital.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: A + B = Check 1 = C
• Reverse/Adjust: (A) + (B) = Check 1 = (C)

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount.

 For Add/New Action Type:

[Default Account Value] + [Additional Paid-in Capital] = Check 1 [Total 1 / Fair Value] = [Cash Amount]

 For Reverse/Adjust Action Type:

[Default Account Value] + [Additional Paid-in Capital] = Check 1 [Total 1 / Fair Value] = [Cash Amount]

SAFE Note Sale for Cash

When to Use – To record the sale (issuance) of SAFE Notes for cash proceeds. SAFE Notes (Simple Agreement for Future Equity) are convertible instruments used by startups to raise capital without setting a valuation, and provide investors a right to future equity following a conversion during a priced round instead of immediate shares. Please consult with your accountant, tax and legal experts for guidance on handling your specific situation.

Relevant Columns

• A [Default Account Value]: Required.

Input the cash value of the SAFE note, which is also the amount of cash received.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: A
• Reverse/Adjust: (A)

Double Entry Checks

• N/A

Preferred Stock Conversion from SAFE Notes

When to Use – To record the conversion of a SAFE Note into Preferred Stock. Please consult with your accountant, tax and legal experts for guidance on handling your specific situation.

Relevant Columns

• A [Default Account Value]: Required.

Input the par value amount of the Preferred Stock being issued (usually number of shares multiplied by par value).

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• B [Additional Paid-in Capital]: Required if applicable.

Input the amount of excess over par value of the Preferred Stock on the date of conversion, calculated as the cash value of the SAFE Note less par value. For example, if the par value amount in Default Account Value is $2000 and the SAFE Note was sold for $9000, then Additional Paid-in Capital – Preferred Stock would be $7000.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: A + B = Check 1
• Reverse/Adjust: (A) + (B) = Check 1

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount.

 For Add/New Action Type:

[Default Account Value] + [Additional Paid-in Capital] = Check 1 [Total 1 / Fair Value]

 For Reverse/Adjust Action Type:

[Default Account Value] + [Additional Paid-in Capital] = Check 1 [Total 1 / Fair Value]

Preferred Stock Conversion from Short-Term Convertible Notes

When to Use – To record the conversion of a short-term Convertible Note into Preferred Stock. This transaction is to convert the original cash value of the short-term Convertible Note, while Preferred Stock Conversion from Accrued Interest on Convertible Notes is the separate transaction to convert the accrued interest. Please consult with your accountant, tax and legal experts for guidance on handling your specific situation.

Relevant Columns

• A [Default Account Value]: Required.

Input the par value amount of the Preferred Stock being issued (usually number of shares multiplied by par value).

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• B [Additional Paid-in Capital]: Required if applicable.

Input the amount of excess over par value of the Preferred Stock on the date of conversion, calculated as the cash value of the short-term Convertible Note less par value. For example, if the par value amount in Default Account Value is $2000 and the Convertible Note was sold for $9000, then Additional Paid-in Capital – Preferred Stock would be $7000.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: A + B = Check 1
• Reverse/Adjust: (A) + (B) = Check 1

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount.

 For Add/New Action Type:

[Default Account Value] + [Additional Paid-in Capital] = Check 1 [Total 1 / Fair Value]

 For Reverse/Adjust Action Type:

[Default Account Value] + [Additional Paid-in Capital] = Check 1 [Total 1 / Fair Value]

Preferred Stock Conversion from Long-Term Convertible Notes

When to Use – To record the conversion of a long-term Convertible Note into Preferred Stock. This transaction is to convert the original cash value of the long-term Convertible Note, while Preferred Stock Conversion from Accrued Interest on Convertible Notes is the separate transaction to convert the accrued interest. Please consult with your accountant, tax and legal experts for guidance on handling your specific situation.

Relevant Columns

• A [Default Account Value]: Required.

Input the par value amount of the Preferred Stock being issued (usually number of shares multiplied by par value).

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• B [Additional Paid-in Capital]: Required if applicable.

Input the amount of excess over par value of the Preferred Stock on the date of conversion, calculated as the cash value of the long-term Convertible Note less par value. For example, if the par value amount in Default Account Value is $2000 and the Convertible Note was sold for $9000, then Additional Paid-in Capital – Preferred Stock would be $7000.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: A + B = Check 1
• Reverse/Adjust: (A) + (B) = Check 1

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount.

 For Add/New Action Type:

[Default Account Value] + [Additional Paid-in Capital] = Check 1 [Total 1 / Fair Value]

 For Reverse/Adjust Action Type:

[Default Account Value] + [Additional Paid-in Capital] = Check 1 [Total 1 / Fair Value]

Preferred Stock Conversion from Accrued Interest on Convertible Notes

When to Use – To record the conversion of the accrued interest on a Convertible Note into Preferred Stock. The accrued interest can be recorded using the Principal and Interest Expense on ST Loan Payable for both short-term and long-term Convertible Notes. Please consult with your accountant, tax and legal experts for guidance on handling your specific situation.

Relevant Columns

• A [Default Account Value]: Required.

Input the par value amount of the Preferred Stock being issued (usually number of shares multiplied by par value).

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• B [Additional Paid-in Capital]: Required if applicable.

Input the amount of excess over par value of the Preferred Stock on the date of conversion, calculated as the value of the accrued interest less par value. For example, if the par value amount in Default Account Value is $600 and the accrued interest totaled $1000, then Additional Paid-in Capital – Preferred Stock would be $400.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: A + B = Check 1
• Reverse/Adjust: (A) + (B) = Check 1

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount.

 For Add/New Action Type:

[Default Account Value] + [Additional Paid-in Capital] = Check 1 [Total 1 / Fair Value]

 For Reverse/Adjust Action Type:

[Default Account Value] + [Additional Paid-in Capital] = Check 1 [Total 1 / Fair Value]

Treasury Stock from Repurchase of Common Stock

When to Use – To record the repurchase of Common Stock by the company, converting the purchased Common Stock into Treasury Stock. Treasury Stock is a contra-equity balance of shares that are issued but not outstanding. Please consult with your accountant, tax and legal experts for guidance on handling your specific situation.

Relevant Columns

• A [Default Account Value]: Required.

Input the purchase value amount of the Common Stock being repurchased (usually number of shares multiplied by sale cost per share). Adds to the Treasury Stock contra-equity account.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: A
• Reverse/Adjust: (A)

Double Entry Checks

• N/A

Cash from Sale of Treasury Stock

When to Use – To record the re-selling of Treasury Stock for cash proceeds, returning the shares to the market and becoming outstanding Common Stock again. The value of the Treasury Stock for this resale entry should match the original value at the time the corresponding Common Stock was repurchased, even if the Common Stock price has changed since that time. Please consult with your accountant, tax and legal experts for guidance on handling your specific situation.

Relevant Columns

• A [Default Account Value]: Required.

Input the original repurchase value amount of the Treasury Stock being resold (usually number of shares multiplied by original repurchase value). Reduces the balance on the Treasury Stock contra-equity account.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• B [Additional Paid-in Capital]: Required if applicable.

Input the amount of excess (positive amount) or shortfall (negative amount) of cash proceeds received compared to the original repurchase value amount of the Treasury Stock being resold. For example, if the Treasury Stock repurchase value amount in Default Account Value is $2000 and the cash received is $9000, then the excess of Additional Paid-in Capital – Treasury Stock would be $7000. If the Treasury Stock repurchase value amount in Default Account Value is $2000 and the cash received is $1500, then shortfall of Additional Paid-in Capital – Treasury Stock would be -$500. Use Check 1 to help balance this amount against the cash received.

 Signage for Add/New in Excess: Positive amount
 Signage for Reverse/Adjust in Excess: Negative amount

 Signage for Add/New in Shortfall: Negative amount
 Signage for Reverse/Adjust in Shortfall: Positive amount

• C [Cash Amount]: Required.

Input the amount of cash received from the resale of Treasury Stock, which may be more or less than the original repurchase value amount of the Treasury Stock being resold. The difference between the cash received and the original repurchase value goes to Additional Paid-in Capital.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: A + {B} = Check 1 = C
• Reverse/Adjust: (A) + {B} = Check 1 = (C)

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount, Purple indicates an amount that may be positive or negative.
* B [Additional Paid-in Capital] has input signages that may be positive or negative depending on the excess or shortfall of cash received. See details in the notes above.

 For Add/New Action Type:

[Default Account Value] + [Additional Paid-in Capital]* = Check 1 [Total 1 / Fair Value] = [Cash Amount]

 For Reverse/Adjust Action Type:

[Default Account Value] + [Additional Paid-in Capital]* = Check 1 [Total 1 / Fair Value] = [Cash Amount]

Cash Dividends Payable

When to Use – To record the declaration of a cash dividend payment, which is a direct, per-share payment of a company’s profits to its shareholders as a tangible return on investment. The declaration reduces Retained Earnings and adds to the Dividends Payable account, which should be cleared via the Bank accounting module similar to other payable accounts.

Relevant Columns

• A [Default Account Value]: Required.

Input the value of the cash dividend payment to be made.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: A
• Reverse/Adjust: (A)

Double Entry Checks

• N/A

BANK (MODULE)

Purpose

Accounting module to record cash inflows and outflows for payables and receivables, tax reimbursements, cash advances, cash gifts and cash donation expenses. As this bank module specifically tracks cash movement with various cash inflow and outflow transactions in the same module, the column input signage in this module is structured for easier at-a-glance viewing by corresponding to the direction of the cash flow—positive for inflow, negative for outflow.

Note: As this module tracks cash inflow or outflow, leaving the Cash Received (Paid) column blank or 0 will result in the residual amount going to Receivable Exchange Gain (Loss) or Payable Exchange Gain (Loss). While not an impossible scenario, a special warning message “Confirm entries with Cash Received (Paid) = 0 are correct” appears beside ERROR COUNT and a special message “Warning: Cash Received (Paid) = 0” will appear on the rows under the Completion Check column. This is a warning message and not an error message, meaning the entries will still upload, with all the expected cash amount going towards Currency Gains or Currency Losses accounts in Other Income (Expenses). If this is not intended, correct the issue by filling in the Cash Received (Paid) column with the actual expected (due) amount.

Module Columns

• Dropdown A
• B [Default Account / Invoice Amount]
• C [Bank Fees]
• D [Merchant Fees]
• E [Invoice Discount]
• F [Cash Received (Paid)]

Automated Exchange Gain (Loss) Columns

• Receivable Exchange Gain (Loss) – Calculated as the difference between the Cash Received versus the Cash Expected and usually carries a zero balance unless a transaction is completed in different currencies with an exchange rate fluctuation during the process. When cash received is less than the cash originally expected, the negative amount is recorded as a Receivable Exchange (Loss). When cash received is greater than the cash originally expected, the positive amount is recorded as a Receivable Exchange Gain.

• Payable Exchange Gain (Loss) – Calculated as the difference between the Cash (Paid) less the Cash (Due) and usually carries a zero balance unless a transaction is completed in different currencies with an exchange rate fluctuation during the process. When cash paid out is a greater amount than the cash originally due, the negative amount is recorded as a Payable Exchange (Loss). When cash paid out is less than the cash originally due, the positive amount is recorded as a Payable Exchange Gain.

——– TRANSACTION SCENARIO OPTIONS FOR SELECTION ——-

Cash Outflow for Payment from Accounts Payable List

When to Use – To reduce or clear a payable balance by sending cash from the bank. The default signage for most Add/New input columns is negative since this is a cash outflow transaction.

Relevant Columns

• Dropdown A: Required.

Select from the dropdown list of payable balance accounts.

• B [Default Account / Invoice Amount]: Required.

Input the amount to pay off on the selected payable balance account.

 Add/New Signage: Negative amount
 Reverse/Adjust Signage: Positive amount

• C [Bank Fees]: Required if applicable.

Input any bank fee charged to process the transaction. Adds to the total cash outflow payment due.

 Add/New Signage: Negative amount
 Reverse/Adjust Signage: Positive amount

• D [Merchant Fees]: Required if applicable.

Input any credit merchant fee charged to process the transaction. Adds to the total cash outflow payment due.

 Add/New Signage: Negative amount
 Reverse/Adjust Signage: Positive amount

• E [Invoice Discount]: Required if applicable.

Input any invoice discount amount (such as from negotiating a discount with the vendor for completing invoice payment within a certain time frame). Reduces the total cash outflow payment due.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• F [Cash Received (Paid)]: Required.

Input the final amount of cash paid (outgoing cash flow). If different from the amount expected after fees and discounts, the difference will go towards a currency gain or currency loss.

 Add/New Signage: Negative amount
 Reverse/Adjust Signage: Positive amount

Column Input Requirements

• Add/New: Dropdown A, (B) + (C) + (D) + E = Check 1 = Check 2, (F)
• Reverse/Adjust: Dropdown A, B + C + D + (E) = Check 1 = Check 2, F

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount. Purple indicates an amount that may be positive or negative.
* [Payable Exchange Gain (Loss)] is an automated column with signage that may be positive or negative depending on exchange rate fluctuations, if any. See details in the notes above.

 For Add/New Action Type:

[Default Account / Invoice Amount] + [Bank Fees] + [Merchant Fees] + [Invoice Discount] = Check 1 [Cash Expected (Due)] = [Cash Received (Paid)] – [Payable Exchange Gain (Loss)] = Check 2 [Cash Expected plus Gain (Loss)]

 For Reverse/Adjust Action Type:

Cash Outflow for Payment of Employee Cash Advance

When to Use – To record the payment of an Employee Cash Advance, often as a loan from the company to the employee representing early payment of future wages to help cover unexpected expenses. When the balance is repaid, record the repayment using a Reverse/Adjust entry to clear the balance on the Employee Advances account.

Relevant Columns

• B [Default Account / Invoice Amount]: Required.

Input the amount advanced (cash outflow) to the employee. Adds to the receivable balance on Employee Advances.

 Add/New Signage: Negative amount
 Reverse/Adjust Signage: Positive amount

Column Input Requirements

• Add/New: (B)
• Reverse/Adjust: B

Double Entry Checks

 N/A

Cash Outflow from Cash Donation Expense (Other Expense)

When to Use – To record cash that is donated by the company to another entity. This is a cash outflow expense that is not considered part of the company or organization’s core mission.

Relevant Columns

• B [Default Account Value]: Required.

Input the amount of cash that is being donated by the company as a cash outflow expense.

 Add/New Signage: Negative amount
 Reverse/Adjust Signage: Positive amount

Column Input Requirements

• Add/New: (B)
• Reverse/Adjust: B

Double Entry Checks

 N/A

Cash Inflow from Accounts Receivable Payment

When to Use – To reduce or clear the Accounts Receivable balance by receiving and adding cash to the bank.

Relevant Columns

• B [Default Account / Invoice Amount]: Required.

Input the amount to clear from Accounts Receivable, which may be the total invoice amount from a customer invoice.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• C [Bank Fees]: Required if applicable.

Input any bank fee charged to process the transaction. Reduces the total cash inflow received.

 Add/New Signage: Negative amount
 Reverse/Adjust Signage: Positive amount

• D [Merchant Fees]: Required if applicable.

Input any credit merchant fee charged to process the transaction. Reduces the total cash inflow received.

 Add/New Signage: Negative amount
 Reverse/Adjust Signage: Positive amount

• E [Invoice Discount]: Required if applicable.

Input any invoice discount amount (such as from negotiating a discount with the customer for completing invoice payment within a certain time frame). Reduces the total cash inflow received.

 Add/New Signage: Negative amount
 Reverse/Adjust Signage: Positive amount

• F [Cash Received (Paid)]: Required.

Input the final amount of cash received (incoming cash flow). If different from the amount expected after fees and discounts, the difference will go towards a currency gain or currency loss.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: B + (C) + (D) + (E) = Check 1 = Check 2, F
• Reverse/Adjust: (B) + C + D + E = Check 1 = Check 2, (F)

Double Entry Checks
Green indicates a positive amount, Red indicates a negative amount. Purple indicates an amount that may be positive or negative.
* [Receivable Exchange Gain (Loss)] is an automated column with signage that may be positive or negative depending on exchange rate fluctuations, if any. See details in the notes above.

 For Add/New Action Type:

[Default Account / Invoice Amount] + [Bank Fees] + [Merchant Fees] + [Invoice Discount] = Check 1 [Cash Expected (Due)] = [Cash Received (Paid)] – [Receivable Exchange Gain (Loss)] = Check 2 [Cash Expected plus Gain (Loss)]

 For Reverse/Adjust Action Type:

Cash Inflow from Reimbursement of Deposits Receivable

When to Use – To reduce or clear the Deposits Receivable balance after receiving cash for the reimbursement of a purchase deposit. This is the follow-up transaction to Refundable Purchase Deposit. If the deposit is forfeited, use the Loss on Forfeited Deposit (Other Expense) transaction from the Expenses accounting module instead.

Relevant Columns

• B [Default Account / Invoice Amount]: Required.

Input the receivable amount from the purchase deposit to clear from Deposits Receivable.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• C [Bank Fees]: Required if applicable.

Input any bank fee charged to process the transaction. Reduces the total cash inflow received.

 Add/New Signage: Negative amount
 Reverse/Adjust Signage: Positive amount

• D [Merchant Fees]: Required if applicable.

Input any credit merchant fee charged to process the transaction. Reduces the total cash inflow received.

 Add/New Signage: Negative amount
 Reverse/Adjust Signage: Positive amount

• E [Invoice Discount]: Required if applicable.

Input any forfeited deposit amount, such as for penalties. Reduces the total amount to be reimbursed and adds to the Loss on Forfeited Deposits expense account.

 Add/New Signage: Negative amount
 Reverse/Adjust Signage: Positive amount

• F [Cash Received (Paid)]: Required.

Input the final amount of cash received (incoming cash flow). If different from the amount expected after fees and discounts, the difference will go towards a currency gain or currency loss.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: B + (C) + (D) + (E) = Check 1 = Check 2, F
• Reverse/Adjust: (B) + C + D + E = Check 1 = Check 2, (F)

 For Add/New Action Type:

 For Reverse/Adjust Action Type:

Cash Inflow from Cash Contribution (Core Revenue)

When to Use – To record an individual cash amount contributed as part of the company or organization’s core mission, such as cash donations received by charities that rely on such donations. As a cash contribution, no equity is recorded and the donor generally does not receive goods or services of significant value in return. For cash gifts that are not core to the mission, use Cash Inflow from Cash Gift (Other Income) instead.

Relevant Columns

• B [Default Account / Invoice Amount]: Required.

Input the cash amount received as a donation, recorded as Cash Contributions under Revenue.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: B
• Reverse/Adjust: (B)

Double Entry Checks

 N/A

Cash Inflow from Cash Gift (Other Income)

When to Use – To record a one-time (non-core) cash amount gifted to the company as Other Income. As a cash gift, no equity is recorded for the cash giver. For cash donations that are core to the mission, use Cash Inflow from Cash Contribution (Core Revenue) instead.

Relevant Columns

• B [Default Account / Invoice Amount]: Required.

Input the cash amount received as a gift. Recorded as Gifts – Cash under Other Income.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: B
• Reverse/Adjust: (B)

Double Entry Checks

 N/A

Cash Inflow from Reimbursement of Input VAT

When to Use – To reduce or clear an Input VAT balance by receiving cash for recoverable VAT on expenses. Can be recorded together with reducing or clearing the payable balance on the Output VAT account if offsetting the VAT owed to tax authorities. Applies only to VAT-registered businesses that have tracked VAT paid on expenses. To reduce or clear the payable balance on the Output VAT account, add a Cash Outflow for Payment from Accounts Payable List transaction and select the Output VAT account.

Relevant Columns

• B [Default Account / Invoice Amount]: Required.

Input the VAT amount reimbursed, reducing the Input VAT receivable balance.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• C [Bank Fees]: Required if applicable.

Input any bank fee charged to process the transaction. Reduces the total cash inflow received.

 Add/New Signage: Negative amount
 Reverse/Adjust Signage: Positive amount

• D [Merchant Fees]: Required if applicable.

Input any credit merchant fee charged to process the transaction. Reduces the total cash inflow received.

 Add/New Signage: Negative amount
 Reverse/Adjust Signage: Positive amount

• F [Cash Received (Paid)]: Required.

Input the final amount of cash received (incoming cash flow). If different from the amount expected after fees and discounts, the difference will go towards a currency gain or currency loss.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: B + (C) + (D) = Check 1 = Check 2, F
• Reverse/Adjust: (B) + C + D = Check 1 = Check 2, (F)

 For Add/New Action Type:

[Default Account / Invoice Amount] + [Bank Fees] + [Merchant Fees] = Check 1 [Cash Expected (Due)] = [Cash Received (Paid)] – [Receivable Exchange Gain (Loss)] = Check 2 [Cash Expected plus Gain (Loss)]

 For Reverse/Adjust Action Type:

Cash Inflow from Reimbursement of GST Input Tax Credit

When to Use – To reduce or clear a GST Input Tax Credit balance by receiving cash for recoverable GST on expenses. Can be recorded together with reducing or clearing the payable balance on the GST Output Tax Credit account if offsetting the GST owed to tax authorities. Applies only to GST-registered businesses that have tracked GST paid on expenses. To reduce or clear the payable balance on the GST Output Tax Credit account, add a Cash Outflow for Payment from Accounts Payable List transaction and select the GST Output Tax Credit account.

Relevant Columns

• B [Default Account / Invoice Amount]: Required.

Input the GST amount reimbursed, reducing the GST Input Tax Credit receivable balance.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• C [Bank Fees]: Required if applicable.

Input any bank fee charged to process the transaction. Reduces the total cash inflow received.

 Add/New Signage: Negative amount
 Reverse/Adjust Signage: Positive amount

• D [Merchant Fees]: Required if applicable.

Input any credit merchant fee charged to process the transaction. Reduces the total cash inflow received.

 Add/New Signage: Negative amount
 Reverse/Adjust Signage: Positive amount

• F [Cash Received (Paid)]: Required.

Input the final amount of cash received (incoming cash flow). If different from the amount expected after fees and discounts, the difference will go towards a currency gain or currency loss.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: B + (C) + (D) = Check 1 = Check 2, F
• Reverse/Adjust: (B) + C + D = Check 1 = Check 2, (F)

 For Add/New Action Type:

 For Reverse/Adjust Action Type:

Cash Inflow from Reimbursement of Income Tax Receivable

When to Use – To record the cash received for income tax reimbursement. Reduces or clears the balance on the Income Tax Receivable account, which was originally recorded using the Estimate for Income Tax Refund transaction on the Expenses accounting module.

Relevant Columns

• B [Default Account / Invoice Amount]: Required.

Input the income tax amount reimbursed, reducing the Income Tax Receivable balance.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

• C [Bank Fees]: Required if applicable.

Input any bank fee charged to process the transaction. Reduces the total cash inflow received.

 Add/New Signage: Negative amount
 Reverse/Adjust Signage: Positive amount

• D [Merchant Fees]: Required if applicable.

Input any credit merchant fee charged to process the transaction. Reduces the total cash inflow received.

 Add/New Signage: Negative amount
 Reverse/Adjust Signage: Positive amount

• F [Cash Received (Paid)]: Required.

Input the final amount of cash received (incoming cash flow). If different from the amount expected after fees and discounts, the difference will go towards a currency gain or currency loss.

 Add/New Signage: Positive amount
 Reverse/Adjust Signage: Negative amount

Column Input Requirements

• Add/New: B + (C) + (D) = Check 1 = Check 2, F
• Reverse/Adjust: (B) + C + D = Check 1 = Check 2, (F)

 For Add/New Action Type:

 For Reverse/Adjust Action Type:

TIMESHEET CALCULATOR

Purpose

Assistance module for tracking indirect and billable hourly labor and residual salary amounts per payroll transaction. The module’s column structure lines up with several of the ID and input columns in the Payroll & Wages module to facilitate copying the values from the Timesheet Calculator back to the Payroll & Wages module.

Setup Employee & Consultant Lookup

The Timesheet Calculator’s automated calculations require that any employees and consultants first be set up in the Employee & Consultant Lookup tab before the inputs (columns with yellow dropdowns including ID parameters, fixed salary per payroll transaction, hourly rates, etc) can flow into the Timesheet Calculator.

STEP 1. Input Hours in Payroll Period.

Start by inputting the number of hours in the payroll period. For example, if the parameters in the Employee & Consultant Lookup tab are set up to have payroll transactions recorded twice per month, then the payroll period hours should reflect the number of hours in the active two-week period, which can vary depending on working days, weekends and holidays. The number of hours determines the hourly rates in the active payroll period for any employee or consultant that does hourly work within their full-time salaried wages.

STEP 2. Manually add hourly labor entries.

In the Manual Hourly Labor Entries Table, manually select any applicable parameters from the yellow dropdown columns, of which Contact ID Name and Dropdown A (labor account) are required. Space has been provided for 1000 entries.

For full-time employees, input the number of hours worked outside the normal full-time scope of work and department, such as salaried employees or consultants who split labor between indirect and billable time. This adjusts the residual fixed amount entries in STEP 3.

For hourly employees or consultants, the wages paid are directly correlated to the number of hours worked under their hourly rate.

Also input additional bonus or commission amounts as needed. Withholdings usually do not apply for hourly work, and are included in the Step 3 table for full-time employees.

STEP 3. Review calculated fixed amount entries.

In the Automated Fixed Amount Entries Table, review the calculated fixed amounts suggested for up to 100 full-time salaried employees. The sum of hourly work plus fixed wages should equal their expected salary per payroll transaction. Wages withheld are automatically suggested based on the amounts set up per payroll transaction in the Employee & Consultant Lookup tab. Add any additional bonus or commission amounts as needed (if not already included in the manual hourly entries).

Copy-Paste back to the ‘Payroll & Wages‘ module.

Copy the payroll transaction row content from columns with gold headers, which match columns in the Payroll & Wages accounting module. To avoid bringing over formulas, paste values only (Ctrl + Shift + V in Windows) into the matching columns in the Payroll & Wages accounting module. Once all relevant entries are copied over and recorded in the Payroll & Wages accounting module, the Automated Fixed Amount Entries Table can be cleared for re-use in the next payroll period.

REVENUE INVOICE GENERATOR

Purpose

Invoice generator for revenue-related transactions, including sales, fees, taxes and indirect cost recovery revenue. Eligible transactions come from the Sales module and Indirect Revenue module. As a best practice, record relevant transactions under the same Invoice ID to facilitate the built-in checks.

STEP 1. Customize Revenue Invoice Header.

The upper section of the revenue invoice generator is dedicated to standardizing the display of information about your company on each revenue invoice, such as contact information or logo. This area is customizable and non-formulaic.

STEP 2. Select Customer from Dropdown.

Use the yellow dropdown to select a Customer for the invoice, which pulls in the relevant Bill To section lines and payment terms to calculate the Due Date. Set up Customers in the Customer Lookup tab, paying special attention to the Client Invoice Full Name, Payment Terms and the Invoice Address Lines for how they appear on the revenue invoice.

STEP 3. Input Invoice ID from ‘Sales’ module.

Input the Invoice ID from the Sales accounting module. Best Practice is to only use one Invoice ID per invoice, though each Invoice ID may have multiple relevant transactions (multiple SJ Ref).

STEP 4. Input Invoice Date.

Input the Invoice Date, which is the date the invoice is officially generated and sent to the customer or client. Best Practice is for the same Invoice Date to be used for every relevant transaction with the same Invoice ID in the Sales accounting module.

STEP 5. Select whether Fee and Shipping are included in Taxable Base.

Use the yellow dropdowns to select whether fee and shipping amounts are included in the tax base, which determines the percentage calculation for tax. Whereas tax amounts are input directly into the Sales accounting module, the Revenue Invoice Generator displays the eligible tax base and the tax % on the eligible tax base when calculating the tax amount. If fee is taxable, select “YES – Tax Fee”. If shipping amounts are taxable, select “YES – Tax Shipping”.

STEP 6. Input SJ References.

Add relevant transactions by inputting one or more SJ Ref from the SJ Ref column in the Sales accounting module. One transaction is pulled in under each SJ Ref, including Product ID Name, Transaction Description, Quantity and Default Account Price. SJ Ref is case sensitive including all 0’s.

If the SJ Ref entered does not also have the same Invoice ID that was entered in STEP 3, an error message will display below stating “SJ REF NOT PART OF INVOICE”. This does not prevent a user from keeping the misaligned SJ REF on the invoice, but brings attention to the mismatch and would be one of the reasons the built-in checks show errors.

STEP 7. Input Invoice ID from ‘Indirect Revenue’ module.

If applicable, input the corresponding Invoice ID from the Indirect Revenue module. This only applies to invoices that reimburse a portion of costs through indirect cost recovery revenue, which can be separately calculated using the standalone INDIRECT CALCULATOR.

STEP 8. Check for Variances and Error Messages.

Check for variances and error messages in the subtotal summary at the bottom of the revenue invoice, showing the expected totals (FROM INVOICE) under the Invoice IDs and the corresponding Sales accounting module and Indirect Revenue accounting module. Variances (VARIANCE) generally result from adding in additional SJ Ref transactions that are not part of the invoice (“GREATER THAN INVOICE ID”) or excluding some of the SJ Ref transactions that are (“LESS THAN INVOICE ID”).

STEP 9. Filter rows for SHOW and prepare tab for print.

Use the FILTER = SHOW toggle to filter for rows to “SHOW” only. This removes rows that are blank or 0’s (“X”) and reduces the extra space on the invoice. When ready, the tab has a pre-set print range and can be printed or exported as PDF for the customer.

EXPENSE INVOICE GENERATOR

Purpose

Invoice generator for expense-related transactions, usually included as documentation for cost reimbursable type invoices and included together with an accompanying Revenue Invoice Generator. Eligible expense transactions come from the Expenses accounting module and Payroll & Wages accounting module for labor-specific expenses. As a best practice, record relevant transactions under the same Invoice ID to facilitate the built-in checks.

STEP 1. Customize Expense Invoice Header.

The upper section of the expense invoice generator is dedicated to standardizing the display of information about your company on each expense invoice, such as contact information or logo. This area is customizable and non-formulaic.

STEP 2. Select Customer from Dropdown.

STEP 3. Input Invoice ID from ‘Sales’ module.

Input the Invoice ID from the Expenses accounting module and Payroll & Wages accounting module. Best practice is to only use one Invoice ID per generated invoice, though each Invoice ID may have multiple relevant transactions (multiple SJ Ref).

STEP 4. Input Invoice Date.

STEP 5. Select whether Tax (VAT and GST) should be included in the invoice.

Use the yellow dropdowns to select whether tax paid on the expense amounts are included in the expense invoice to the client. If tax should be included, select “YES – Include Tax”.

STEP 6. Input SJ References from the ‘Expenses’ module in the INPUT EXPENSE SJ REF column.

Under the INPUT EXPENSE SJ REF column, add relevant transactions by inputting one or more SJ Ref from the SJ Ref column in the Expenses accounting module. One transaction is pulled in under each SJ Ref, including Account Name, Transaction Description, and Default Account Value. SJ Ref is case sensitive including all 0’s, and only one SJ Ref can be added per row; an SJ Ref added from the Expenses accounting module overrides any SJ Ref in the same row from the Payroll & Wages accounting module in the INPUT PAYROLL SJ REF column.

STEP 7. Input SJ References from the ‘Payroll & Wages’ module in the INPUT PAYROLL SJ REF column.

Under the INPUT PAYROLL SJ REF column, add relevant transactions by inputting one or more SJ Ref from the SJ Ref column in the Payroll & Wages accounting module. One transaction is pulled in under each SJ Ref, including Full Name, Transaction Description, Hours, Rate, and Subtotal Earned. SJ Ref is case sensitive including all 0’s, and only one SJ Ref can be added per row. To use an SJ Ref from the Payroll & Wages accounting module, keep the Expense SJ Ref blank; an SJ Ref added under the INPUT PAYROLL SJ REF column is overridden by any SJ Ref in the same row under the INPUT EXPENSE SJ REF column.

STEP 8. Check for Variances and Error Messages.

Check for variances and error messages in the subtotal summary at the bottom of the revenue invoice, showing the expected totals (FROM INVOICE) under the Invoice ID from the corresponding Expenses accounting module and Payroll & Wages accounting module. Variances (VARIANCE) generally result from adding in additional SJ Ref transactions that are not part of the invoice (“GREATER THAN INVOICE ID”) or excluding some of the SJ Ref transactions that are (“LESS THAN INVOICE ID”).

STEP 9. Filter rows for SHOW and prepare tab for print.

FIXED ASSETS TRACKER

Purpose

Assistance module for recording fixed asset purchases or acquisitions, and the associated monthly straight-line depreciation or amortization expenses expected. Monthly depreciation or amortization amounts should be recorded in the Inventory & Assets accounting module under Add/New Depreciation or Amortization of Asset.

Required Columns

Asset Type – Use the yellow dropdown to select an asset account.

Date of Purchase – Input the date of the asset’s purchase or acquisition.

Quantity – Input the quantity (in whole numbers) of the asset purchased or acquired.

Per Unit Cost – Input the per unit cost or value of the asset at the time of purchase or acquisition.

Salvage Value – Input the per unit residual value of the asset once fully depreciated, if the asset can still be sold. If the asset can only be disposed, the residual value would be zero.

Useful Life (Months) – Input the lifespan of the asset in months. Used to calculate a simple per unit straight-line depreciation of the asset by month until only the salvage value remains.

Automated Columns

Count – Shows the row number for each of the 100 allotted rows.

Asset Disposal Date – Shows the date when the asset is considered fully depreciated and ready for sale or disposal. Calculated as the Date of Purchase plus the number of months of Useful Life.

Per Unit Monthly Depreciation or Amortization – Automatically calculates the per unit monthly straight-line depreciation or amortization amount of the asset. When recording an Add/New Depreciation or Amortization of Asset, input the quantity to get the total monthly depreciation or amortization amount.

Optional Metadata Columns

Additional columns have been provided for capturing metadata about the listed assets. These optional metadata columns do not impact any other modules and are intended purely for documenting information in one place or filtering the assets listed in the lookup by other criteria.

Available Metadata Columns:

- Description
- Tracking Option 1
- Tracking Option 2
- Notes

ANNEX: ACCRUAL TRANSACTIONS

Cash-basis Accounting vs Accrual Accounting

Many small businesses operate on cash-basis accounting, which means recording transactions only when money actually changes hands, with no need to track accounts receivable or accounts payable. However, businesses many larger or more complex businesses choose to implement accrual accounting, wherein revenue is recognized when earned and expenses when incurred, rather than when cash exchanges hands, aligning with the matching principle. While cash-basis accounting is generally easier to manage, accrual accounting provides a more accurate financial picture period by period.

List of Transactions Applicable to Accrual Accounting

Expense Accrual (Pending Invoice)

Prepaid Expense (Short-Term)

Transition of Short-Term Prepaid Expense to Actual Expense

Prepaid Expense (Long-Term)

Transition of Long-Term Prepaid Expense to Short-Term Prepaid Expense

Lease Expense with Deferred Payment

Estimate for Income Tax Refund

Transition of Short-Term Prepaid to Actual Asset or Inventory

Accrued (Not yet Invoiced) Inventory Sales Revenue

Accrued (Not yet Invoiced) Non-Inventory Sales Revenue

Prepaid (Unearned) Revenue

Transition of Prepaid (Unearned) Revenue to Actual Inventory Sales Revenue

Transition of Prepaid (Unearned) Revenue to Actual Non-Inventory Sales Revenue

Accrual Examples

Long-Term Prepaid Expense

Adding a new 13-month phone service plan that is prepaid fully upfront for 1300 dollars at 100/month, with service to begin immediately.

1. In the month the cash is paid (month 1), you record 1300 in cash paid with Prepaid Expense (Long-Term).
2. That same month 1, you follow up with Transition of Long-Term Prepaid Expense to Short-Term Prepaid Expense moving 1200 from the Prepaid Expenses (Long-Term) account to the Prepaid Expenses (Current) account, the portion associated with the first 12 months of service. This leaves 100 (one month’s service) under Prepaid Expenses (Long-Term).
3. As the service begins immediately, you immediately follow-up with Transition of Short-Term Prepaid Expense to Actual Expense and allocate the 100 for month 1 from Prepaid Expenses (Current) to an actual service expense (e.g. Telephone and Internet).
4. In month 2, you move another 100 with Transition of Long-Term Prepaid Expense to Short-Term Prepaid Expense, which clears the 100 balance that still remained under Prepaid Expenses (Long-Term) and moves the remaining service balance all to Prepaid Expenses (Current).
5. That same month 2, you recognize the expense incurred by allocating another 100 for month 2 with Transition of Short-Term Prepaid Expense to Actual Expense.
6. With the remaining service balance now all moved to Prepaid Expenses (Current), you continue allocating 100 monthly with Transition of Short-Term Prepaid Expense to Actual Expense for the remaining 11 months until the service term is complete.

Deferred Lease

A 12-month lease originally costing 12000 total (1000 per month) offers a first-month free rent period. The 12-month rent total is now 11000, and the one-month straight-line expense amount would be 11/12^th of the original full-price lease expense, or 11000 ÷ 12 = 916.67. This example company is not VAT/GST registered, so the cost includes any associated sales tax.

1. In month 1, the lease is fully deferred with 0 cash paid while the straight-line lease expense is 916.67, deferring 916.67.
2. In subsequent months, 1000 is paid monthly for a 916.67 monthly lease expense, deferring -83.33.
3. By the end of month 12, the initial 916.67 Deferred Lease balance becomes 0 after the full 12 months.

Month	Default Account Value	Cash Paid	Deferred Amount	Deferred Lease Balance
1	916.67	0.00	916.67	916.67
2	916.67	1000.00	-83.33	833.33
3	916.67	1000.00	-83.33	750.00
4	916.67	1000.00	-83.33	666.67
5	916.67	1000.00	-83.33	583.33
6	916.67	1000.00	-83.33	500.00
7	916.67	1000.00	-83.33	416.67
8	916.67	1000.00	-83.33	333.33
9	916.67	1000.00	-83.33	250.00
10	916.67	1000.00	-83.33	166.67
11	916.67	1000.00	-83.33	83.33
12	916.67	1000.00	-83.33	0.00
Total	11000.00	11000.00	0.00

ANNEX: IN-KIND TRANSACTIONS

In-Kind Transactions

Double-entry accounting requires that every transaction documented is balanced between the total amount debited and amount credited. For many transactions, this involves cash movement on the Statement of Cash Flows while other transaction activities bypass cash movement due to timing of payment (via account payables and receivables) versus revenue or expense recognition or due to the in-kind nature of the transaction.

In-kind transactions include activities such as receiving or giving free inventory, assets or services as part of a business’s core mission or as a non-essential source of income or expense. While some businesses, especially small businesses or sole proprietorships, may opt to exclude insignificant in-kind activities from their financial records, any activities that are officially recorded need to satisfy the double-entry accounting requirements of debits and credits without misleading overall cash movement in the Statement of Cash Flows. Consult with your accountant or financial advisor on whether your business is required to document certain in-kind activities to remain compliant with local business and tax laws.

Below is a list of special non-cash activities that apply to the increase or decrease of inventory, assets, or expenses without any overall cash movement on the Statement of Cash Flows. For activities that cross between the operating, activity or financing sections, special non-cash Chart of Account accounts have been created to facilitate exclusion of cash movement.

List of Transactions Applicable to Non-Cash or In-Kind Activities

Non-Cash Inventory

Free Inventory Promotion Expense – giving away inventory as a marketing promotion expense

Inventory Donation Expense (Other Expense) – donating inventory as a non-essential expense

Inventory Program Expense (Core Expense) – distributing inventory or supplies as part of the core mission

In-Kind Contribution – Inventory (Core Revenue) – receiving free inventory/supplies as part of the core mission

Gifts-in-Kind – Inventory (Other Income) – receiving inventory as a non-essential income source

Non-Cash Assets

In-Kind Contribution – Assets (Core Revenue) – receiving free assets for sustaining the business as part of core mission revenue (usually non-profits)

Gifts-in-Kind – Assets (Other Income) – receiving free assets as non-essential income

Asset Donation Expense (Other Expense) – donating the residual value of an asset as a non-essential expense

Non-Cash Equity

Equity Contribution from Owner / Equity Contribution from Partner/ Equity Contribution from Member – Non-cash asset accounts and expense accounts (Equity Contribution – Wages, Equity Contribution – Professional Services) are already included in the list of equity contribution options in Dropdown A, along with Cash.

Non-Cash Revenue

Free Service Promotion – offering a service to a customer free of charge

Non-Cash Expenses

In-Kind Contributions – Expenses (Core Revenue) – receiving an essential service expense or benefit free of charge as part of the core mission

Gifts-in-Kind – Contribution Expense (Other Income) – receiving a non-essential service expense or benefit free of charge

DOCUMENTATION

MASTER LEDGER

NEXUS

HORIZON

INVENTORY MANAGER

INDIRECT CALCULATOR

QUICK START GUIDE

TABLE OF CONTENTS

MASTER LEDGER

FULL TRANSACTIONS LIST

GENERAL

Error Check Columns

Required Setup Inputs

Optional Setup Columns

Automated Setup Columns

ACCOUNT SETUP

Chart of Accounts

Transactions List

DATA MIGRATION

Export Actuals

Export Full Lookup

Export Lookup to Nexus

LOOKUP MANAGEMENT

Employee & Consultant Lookup

Department Lookup

Vendor Lookup

Customer Lookup

Project Lookup

Product & Inventory Lookup

EXPENSES MODULE

Operating or Direct Cost Expense

Expense Accrual (Pending Invoice)

Prepaid Expense (Short-Term)

Transition of Short-Term Prepaid Expense to Actual Expense

Prepaid Expense (Long-Term)

Transition of Long-Term Prepaid Expense to Short-Term Prepaid Expense

Lease Expense with Deferred Payment

Estimate for Income Tax Refund

Reimbursable Expense Claim

In-Kind Contributions – Expenses (Core Revenue)

Gifts-in-Kind – Contribution Expense (Other Income)

Refundable Purchase Deposit

Loss on Forfeited Deposit (Other Expense)

Irrecoverable VAT as Expense

Irrecoverable GST as Expense

Allowance for Doubtful Accounts for Estimated Bad Debt Expense

Accounts Receivable Write-Off from Allowance for Doubtful Accounts

Recovery or Refund of Prior Year Expense

SALES MODULE

Inventory Sales Revenue

Non-Inventory Sales Revenue

Free Service Promotion

Inventory Sales Return

Non-Inventory Sales Return

Refundable Customer Advance Deposit

Accrued (Not yet Invoiced) Inventory Sales Revenue

Accrued (Not yet Invoiced) Non-Inventory Sales Revenue

Prepaid (Unearned) Revenue

Transition of Prepaid (Unearned) Revenue to Actual Inventory Sales Revenue

Transition of Prepaid (Unearned) Revenue to Actual Non-Inventory Sales Revenue

INDIRECT REVENUE MODULE

PAYROLL & WAGES MODULE

Fixed Amount Wages

Hourly Wages

INVENTORY & ASSETS MODULE

Asset or Inventory Purchase

Depreciation or Amortization of Asset

Sale or Disposal of Asset

Transition of Short-Term Prepaid to Actual Asset or Inventory

Work-in-Process Inventory from Raw Materials Inventory

Finished Product Inventory from Raw Materials Inventory

Finished Product Inventory from Work-in-Process Inventory

Write-Off of Raw Materials Inventory

Write-Off of Work-in-Process Inventory

Write-Off of Finished Product Inventory

Free Inventory Promotion Expense

Inventory Program Expense (Core Expense)

In-Kind Contribution – Inventory (Core Revenue)

In-Kind Contribution – Assets (Core Revenue)

Inventory Donation Expense (Other Expense)