============================================================ LEVINSON LYON ACCOUNTING ============================================================ GENERAL LEDGER MANUAL ------------------------------------------------------------ COPYRIGHT (c) Copyright 1985 by CharterHouse Software Corporation. All rights reserved. No part of this publication may be reproduced, transmitted, transcribed, stored in a retrieval system, or translated into any language or computer language, in any form or by any means, electronic, mechanical, magnetic, optical, chemical, manual or otherwise, without the prior written consent of CharterHouse Software Corporation, 30401 Agoura Road, Agoura Hills, CA 91301-2009. DISCLAIMER CharterHouse Software Corporation makes no representations or warranties with respect to the contents hereof and specifically disclaims any implied warranties of merchantability or fitness for any particular purpose. Further, CharterHouse, Inc. reserves the right to revise this publication and to make changes from time to time in the content hereof without obligation of CharterHouse, Inc. to notify any person of such revision or changes. Please note that this manual discusses functions unique to the Levinson Lyon General Ledger application. It does NOT repeat discussions of functions covered in your Levinson Lyon Guide To Operations. Refer to your Guide To Operations if you have questions regarding: - Using the Levinson Lyon learning aids - Displaying help - Getting support - Entering data - Formatting reports - Printing, displaying, or filing reports - Setting the record pointer - Cloning records - Master menu functions SECTION 1 OVERVIEW TABLE OF CONTENTS Overview . . . . . . . . . . . . . . . . . . . . . . 1 - 1 Getting Started . . . . . . . . . . . . . . . . . . 1 - 4 Journal Processing . . . . . . . . . . . . . . . . . 1 - 8 Special Journal Processing . . . . . . . . . . . . . 1 - 11 Financial Reporting . . . . . . . . . . . . . . . . 1 - 14 Year-end Processing . . . . . . . . . . . . . . . . 1 - 17 Miscellaneous Processing . . . . . . . . . . . . . . 1 - 18 SECTION 2 GETTING STARTED TABLE OF CONTENTS Getting Started . . . . . . . . . . . . . . . . . . 2 - 1 Initializing the General Ledger Data Files . . . . . 2 - 2 Displaying the General Ledger Menu . . . . . . . . . 2 - 11 Setting Up the General Files . . . . . . . . . . . . 2 - 12 Statement Titles and Comments File . . . . . . . . . 2 - 13 Chart of Accounts File . . . . . . . . . . . . . . . 2 - 17 Levinson Lyon Account Numbers . . . . . . . . . . . . 2 - 19 Simplified Chart of Accounts Setup . . . . . . . . . 2 - 22 Chart of Accounts File Listing . . . . . . . . . . . 2 - 31 Setting Up Departments and Divisions . . . . . . . . 2 - 34 Division Name File . . . . . . . . . . . . . . . . . 2 - 39 Division Name File Listing . . . . . . . . . . . . . 2 - 42 Department Name File . . . . . . . . . . . . . . . . 2 - 44 Department Name File Listing . . . . . . . . . . . . 2 - 47 Quick Department Add . . . . . . . . . . . . . . . . 2 - 49 Setting Up Supporting Schedules . . . . . . . . . . . 2 - 52 Schedule File . . . . . . . . . . . . . . . . . . . . 2 - 55 Schedule File Listing . . . . . . . . . . . . . . . . 2 - 60 Setting Up Summary Statements . . . . . . . . . . . . 2 - 62 Chart of Accounts File Maintenance . . . . . . . . . 2 - 65 Account Types . . . . . . . . . . . . . . . . . . . . 2 - 67 Account Type Variables . . . . . . . . . . . . . . . 2 - 81 Maintenance . . . . . . . . . . . . . . . . . . . . . 2 - 86 Account Balances File . . . . . . . . . . . . . . . . 2 - 93 Account Balances Listing . . . . . . . . . . . . . . 2 - 99 Budget File . . . . . . . . . . . . . . . . . . . . . 2 - 101 Budget File Listing . . . . . . . . . . . . . . . . . 2 - 105 Journal Name File . . . . . . . . . . . . . . . . . . 2 - 107 Journal Name File Listing . . . . . . . . . . . . . . 2 - 110 Gross Profit Inventory Adjustment File . . . . . . . 2 - 112 Tax Accrual Adjustment File . . . . . . . . . . . . . 2 - 116 System Control File . . . . . . . . . . . . . . . . . 2 - 121 SECTION 3 JOURNAL PROCESSING TABLE OF CONTENTS Journal Processing . . . . . . . . . . . . . . . . . 3 - 1 Maintaining the General Files . . . . . . . . . . . . 3 - 5 Entering Journal Transactions . . . . . . . . . . . . 3 - 6 Defining the Processing Period and Journal . . . . . 3 - 7 Entering Transactions . . . . . . . . . . . . . . . . 3 - 12 Entry Options . . . . . . . . . . . . . . . . . . . . 3 - 20 Journal Transaction Report . . . . . . . . . . . . . 3 - 23 Journal Transaction Correction . . . . . . . . . . . 3 - 26 Account Balances Update . . . . . . . . . . . . . . . 3 - 33 SECTION 4 SPECIAL JOURNAL PROCESSING TABLE OF CONTENTS Special Journal Processing . . . . . . . . . . . . . 4 - 1 Recurring and Reversing Journals . . . . . . . . . . 4 - 2 Journal Transaction Interface . . . . . . . . . . . . 4 - 5 Gross Profit Inventory Adjustment . . . . . . . . . . 4 - 8 Tax Accrual Adjustment . . . . . . . . . . . . . . . 4 - 12 SECTION 5 FINANCIAL REPORTING TABLE OF CONTENTS Financial Reporting . . . . . . . . . . . . . . . . . 5 - 1 Working Trial Balance . . . . . . . . . . . . . . . . 5 - 2 General Ledger Report . . . . . . . . . . . . . . . . 5 - 6 Balance Sheet . . . . . . . . . . . . . . . . . . . . 5 - 10 Income Statement . . . . . . . . . . . . . . . . . . 5 - 16 Income Statement - Columnar . . . . . . . . . . . . . 5 - 24 Statement of Changes . . . . . . . . . . . . . . . . 5 - 30 Statement of Funds Flow . . . . . . . . . . . . . . . 5 - 34 SECTION 6 YEARLY PROCESSING TABLE OF CONTENTS Yearly Processing . . . . . . . . . . . . . . . . . . 6 - 1 SECTION 7 MISCELLANEOUS PROCESSING TABLE OF CONTENTS Miscellaneous Processing . . . . . . . . . . . . . . 7 - 1 Journal Transaction File Maintenance . . . . . . . . 7 - 2 Journal Transaction File Listing . . . . . . . . . . 7 - 6 Reconstructing Account Balances . . . . . . . . . . . 7 - 8 Cloning A Chart of Accounts . . . . . . . . . . . . . 7 - 10 Combining General Ledgers . . . . . . . . . . . . . . 7 - 12 APPENDIX A TABLE OF CONTENTS Changing Period Numbers . . . . . . . . . . . . . . . A - 1 GENERAL LEDGER TABLE OF CONTENTS Overview . . . . . . . . . . . . . . . . . . . . . . . . 1 Getting Started Procedure . . . . . . . . . . . . . . . . 2 Journal Processing . . . . . . . . . . . . . . . . . . . 3 Special Journal Processing . . . . . . . . . . . . . . . 4 Financial Reporting . . . . . . . . . . . . . . . . . . . 5 Year-end Processing . . . . . . . . . . . . . . . . . . . 6 Miscellaneous Processing . . . . . . . . . . . . . . . . 7 Changing Period Numbers . . . . . . . . . . . . . . . . . A ================================================================= OVERVIEW ================================================================= Levinson Lyon General Ledger is one of the family of Levinson Lyon accounting applications. It has optional links to the Levinson Lyon Accounts Receivable, Billing and Inventory Control, Accounts Payable, Fixed Assets, and/or Payroll applications for those users who have, or wish to add, any or all of those applications. With the Levinson Lyon General Ledger application, you may: - Define your own Chart of Accounts from scratch or use a "simplified setup" to establish a core Chart of Accounts for a sole proprietorship, partnership, or corporation. You may then modify the core Chart of Accounts to suit your needs. - Design your own financial statement formats including totals, titles, headings and footings - Make an unlimited number of journal entries per session (10 per screen with multiple screens) and edit those entries both before and after the session is posted - Define up to 89 transaction journals (e.g. Cash Receipts, Cash Disbursements, etc.) - Make journal entries for up to 26 open periods, 13 in the current year and 13 in the next year - Display your posting account numbers and descriptions during journal entry - Verify your journal entries by comparing them with the debit/credit and hash totals maintained by Levinson Lyon during each journal entry session (a debit/credit difference is also displayed) - Optionally verify that the account numbers you enter represent posting accounts in your Chart of Accounts 1 - 1 - Optionally add accounts to your Chart of Accounts after journal entries for those accounts have been posted - Enter decimal points during journal entry, or have Levinson Lyon enter decimals - Generate automatic inventory adjustment entries based on a percentage of gross profit - Generate automatic state and federal tax accrual entries based on your estimated tax rates - Enter automatic recurring journal entries - Enter automatic reversing journal entries - Add departments and/or divisions for ranges of primary accounts using 4-digit sub-account numbers - Perform an "interim year-end close" and continue processing while awaiting audit adjustments - Print financial statements for any period in the current or next years at any time, including: Balance Sheets Income Statements Statement of Changes Statement of Funds Flow - Print "comparative" financial statements against the same period in the prior year or against budget amounts with an option for a year-to-date comparison - Design and print financial statement "schedules" and/or summary statements to extract data for separate reporting - Print Income Statements for companies, departments, and divisions in standard or columnar format - Print Journal Transaction Reports for all journals or a range of journals for any of the 26 open periods 1 - 2 - Print General Ledger Reports for all periods or a range of periods for either open year - Edit the contents of all files - Clone a Chart of Accounts for use with another company - Combine multiple companies' General Ledgers into one - Change period numbers as in a change of fiscal yearend. Levinson Lyon General Ledger reports and file listings provide complete "audit trails" for all transactions. All reports and file listings may be printed, displayed, or stored in standard text files. ================================================================= 1 - 3 ================================================================= GETTING STARTED (Overview) ================================================================= During the getting started procedure, you will: 1. Initialize your data files, and 2. Set up the Levinson Lyon general files Levinson Lyon reduces General Ledger data entry to a minimum by storing information which is used repeatedly in general files and extracting pertinent General Ledger data from other Levinson Lyon systems (e.g. A/R, Billing and Inventory Control, A/P, Fixed Assets, Payroll, etc.). The transaction data you routinely enter is then combined with information retrieved from the general files to produce: - Journal Transaction Reports - General Ledger Reports - Financial Statements - File Listings The General Ledger general files include the: - Statement Comments and Titles File - Chart of Accounts File - Journal Transaction File - Account Balances File - Budget File - Schedule File - Division Name File - Department Name File - Journal Name File - System Control File Levinson Lyon also uses some of the general files to accumulate transaction data. The period totals for each open period and for each period of the Prior Year, for example, are calculated and maintained in the Account Balances File. 1 - 4 STATEMENT COMMENTS AND TITLES FILE The Statement Comments and Titles File maintains the titles and top and bottom comments which will be printed on your: - Balance Sheets - Income Statements - Statement of Changes - Statement of Funds Flow CHART OF ACCOUNTS FILE The Chart of Accounts File maintains the account numbers, their descriptions, and the formatting instructions used to produce financial statements. JOURNAL TRANSACTION FILE The Journal Transaction File maintains the journal entry detail for all periods in each of the two open processing years. Included for each entry are the account number, description, date, reference, amount, etc. ACCOUNT BALANCES FILE The Account Balances File maintains the account balances for the posting accounts in your Chart of Accounts. The balances in the Account Balances File are maintained by Levinson Lyon and are solely dependent on the transactions in the Transaction File. BUDGET FILE The Budget File maintains budget amounts for each General Ledger account for each period of the current processing year. Each time you print financial statements, you may include a budget comparison of actual values to the budget amounts maintained in the Budget File. 1 - 5 SCHEDULE FILE The Schedule File maintains the parameters necessary to define any financial schedules you would like to print with your financial statements. Each record in the Schedule File includes the schedule title, range of accounts to be included, which statement it is associated with, etc. DIVISION NAME FILE The Division Name File maintains division numbers and names for printing divisional Income Statements. DEPARTMENT NAME FILE The Department Name File maintains departmental numbers and names for printing departmental Income Statements. JOURNAL NAME FILE The Levinson Lyon General Ledger System provides 99 journals for journal entries. The Journal Name File maintains the name of each journal you define. (Journals 90-99 are reserved for Levinson Lyon special functions, e.g. recurring entries) GROSS PROFIT INVENTORY ADJUSTMENT FILE The Gross Profit Inventory Adjustment File maintains the parameters needed to estimate your ending inventory based on the assumption that your gross profit is a constant percentage of your net sales. 1 - 6 TAX ACCRUAL ADJUSTMENT FILE The Tax Accrual Adjustment File maintains the parameters needed to estimate your federal and state income taxes based on a percentage of your pre-tax profit. SYSTEM CONTROL FILE The System Control File maintains information and parameters for various General Ledger functions, e.g. the account you may optionally use for rounding errors, period end dates, etc. ================================================================= 1 - 7 ================================================================= JOURNAL PROCESSING (Overview) ================================================================= Journal processing procedures include: - Maintaining the general files - Making Journal Transaction Entries - Printing Journal Transaction Reports - Making Journal Transaction Corrections - Updating the Account Balances File MAINTAINING THE GENERAL FILES You will set up the general files during the getting started procedure, but you must also maintain the general files with current information. If you post to a new account, for example, you must add that account to your Chart of Accounts. ENTERING JOURNAL TRANSACTIONS Most of your journal entries will be made via the Journal Transaction Entry function. To facilitate multiple transaction entering and editing, Levinson Lyon stores your journal entries in a temporary file until you post those entries to the Journal Transaction File. Each time you post journal entries, Levinson Lyon will "attempt" to update your account balances with your entries. If you have posted to an invalid account, an Error Analysis Report will be printed. You must then make corrections, or add supporting accounts to your Chart of Accounts, and update your account balances by selecting the Account Balances Update function from the menu. You may ensure that you are always posting to valid accounts by verifying accounts during journal entry (an option maintained in the System Control File). 1 - 8 Each time you begin a journal entry session, you will designate the posting year, period, and journal. You may post to any one of 26 open periods, 13 in the current year and 13 in the next year. Conceptually, you will always be posting to the current year, but you may continue processing into the next year while you are waiting for other current year activity (such as audit adjustments) to become available. JOURNAL TRANSACTION REPORT The Journal Transaction Report lists the contents of the Journal Transaction File for a specified period. It is printed in journal number order with subtotals for each journal. JOURNAL TRANSACTION CORRECTION Journal Transaction Correction is a "limited" access Transaction File editing function, i.e. like the journal entry function, it may be selected by those persons who are processing with a full or limited access password. Changes that would force a period out-of-balance cannot be made via the Journal Transaction Correction function. 1 - 9 ACCOUNT BALANCES UPDATE The Account Balances Update function is a two part function: 1. It confirms the validity of the transactions in the Transaction File and lists any inconsistencies in an Error Analysis Report, and 2. If no errors are found, updates the balances in the Account Balances File with the amounts of those transactions. Normally, balances are updated with your journal entries after those entries are posted to the Journal Transaction File. However, if Levinson Lyon encounters an invalid account during the update procedure, the Error Analysis Report from the Account Balances Update function will be printed. You must then make the necessary adjustments and select the Account Balances Update function from the menu until no errors are detected and the update is completed. ================================================================= 1 - 10 ================================================================= SPECIAL JOURNAL PROCESSING (Overview) ================================================================= Special Journal Processing procedures include: - Recurring and Reversing Journals - Journal Transaction Interface - Gross profit Inventory Adjustments - Tax Accrual Adjustments Each function is optional. Each function also takes the place of making journal entries via the Journal Transaction Entry procedure. Each time you select one of the Special Journal Processing functions, Levinson Lyon will create journal entries, just as if you had entered them via the journal Transaction Entry procedure, but those entries will be derived from: - Prior entries, e.g. recurring or reversing entries - Calculations, e.g. estimating ending inventory based on gross profit as a percentage of net sales Note that Special Journal Processing functions are typically performed after all other entries for a processing period have been made. RECURRING and REVERSING JOURNALS Levinson Lyon reserves journal number 92 for recurring journal entries. Each time you select the Recurring and Reversing Journal function, Levinson Lyon makes a current period entry for any journal 92 entries in the previous period. Levinson Lyon reserves journals 90 and 91 for reversing entries. Each time you select the Recurring and Reversing Journal function, Levinson Lyon takes any journal 90 entries from the previous period, reverses those entries and enters them in journal 91 for the current period. 1 - 11 JOURNAL TRANSACTION INTERFACE The Journal Transaction Interface function reads and posts the General Ledger transfer files from: - Accounts Receivable, Billing, and Inventory Control - Accounts Payable - Payroll - Fixed Assets - Job Costing Each time you perform the Journal Transaction Interface function, you may: 1. Post data from any or all of the applications, and 2. Designate the journal to be used for each application GROSS PROFIT INVENTORY ADJUSTMENT The Gross Profit Inventory Adjustment function calculates your ending inventory, based on the assumption that your gross profit is a percentage of your net sales, and makes a resulting journal entry for your Balance Sheet inventory account and your Income Statement inventory change account. The calculation and entries are based on the parameters maintained in the Gross Profit Inventory Adjustment File. 1 - 12 TAX ACCRUAL ADJUSTMENT The Tax Accrual Adjustment function estimates your federal and state income taxes based on a percentage of your year-to-date net income. Each time you select the function, Levinson Lyon makes the journal entries necessary to: 1. Adjust your Balance Sheet federal and state tax accrual accounts for the calculated amounts, and 2. Reflect the adjustment amounts in the current period's Income Statement. The calculation and entries are based on the parameters maintained in the Tax Accrual Adjustment File. ================================================================= 1 - 13 ================================================================= FINANCIAL REPORTING (Overview) ================================================================= Levinson Lyon will prepare financial reports for any period in the current or next year, including: - Working Trial Balance - General Ledger Report - Balance Sheet - Income Statement - Statement of Changes - Statement of Funds Flow Although financial reports are typically printed at the end of each processing period, Levinson Lyon financial reports may be printed at any time, providing that an Account Balances Update error condition does not exist. WORKING TRIAL BALANCE The Working Trial Balance is a 132 column report that lists the balances in your posting accounts in a work sheet format, providing debit and credit columns for: - Account balances - Adjustments - Adjusted balances GENERAL LEDGER REPORT The General Ledger Report is an 80 column report that lists the entries that have been made for all accounts or a range of accounts. The report is printed in account number order and may be printed in detailed or summary form. 1 - 14 BALANCE SHEET Balance Sheets are formatted from the Balance Sheet accounts in your Chart of Accounts, using the balances from the Account Balances File. You may print a Balance Sheet for any period in the current or next processing years, with options to include a budget or prior year comparison. INCOME STATEMENT Income Statements are formatted by the Income Statement Accounts in your Chart of Accounts, using the balances from the Account Balances File. You may print an Income Statement for any period in the current or next years, with options to include a budget, prior year, or an account percentage comparison. There are three levels of Income Statements: 1. Combined (company) 2. Divisional 3. Departmental INCOME STATEMENT - COLUMNAR You may also print an Income Statement in columnar format if you have a wide carriage printer. The columnar format includes all of your accounting periods (12 or 13) side-by-side with a line total. STATEMENT OF CHANGES The Statement of Changes is an analysis of the sources and uses of working capital. It is a preformatted 80 column report based on the balances in your Balance Sheet accounts. 1 - 15 STATEMENT OF FUNDS FLOW The Statement of Funds Flow is similar to the Statement of Changes. It provides an analysis of the sources and uses of cash in an 80 column preformatted report based on the balances in your Balance Sheet accounts. ================================================================= 1 - 16 ================================================================= YEAR-END PROCESSING (Overview) ================================================================= The Year-End Processing function may be performed on: 1. An interim basis, or 2. A final basis During an interim closing, Levinson Lyon will make all year- end closing entries (closing revenue/expenses to retained earnings, partnership distributions, draw accounts, etc.) for the current year and post them to the next year. You may perform as many interim closings as is necessary to obtain the desired results. In addition, during a final closing, Levinson Lyon will: - Delete all current year transactions from the Journal Transaction File - Enter all next year transactions as current year transactions - Shift current year balances to the prior year and any next year balances to the current year ================================================================= 1 - 17 ================================================================= MISCELLANEOUS PROCESSING (Overview) ================================================================= Miscellaneous Processing functions include: - Journal Transaction File Maintenance - Journal Transaction File Listing - Reconstructing Account Balances - Cloning a Chart of Accounts - Combining General Ledgers These are functions which are not a part of normal processing, but which you may nevertheless need to perform. JOURNAL TRANSACTION FILE MAINTENANCE Journal Transaction File Maintenance is a "full" access Journal Transaction File editing function, i.e. it may only be selected by those persons processing with a full access password. It is a restricted function because it allows you to change anything and everything in the Journal Transaction File. However, Levinson Lyon still maintains the integrity of your account balances by performing the Account Balances Update function if you make any changes to the file, printing an Error Analysis Report, etc. Note that the recommended procedure for making adjustments for your journal entries is to make adjusting journal entries via the Journal Transaction Entry procedure. The adjusting journal entry method provides a complete audit trail of events. JOURNAL TRANSACTION FILE LISTING The Journal Transaction File Listing is an 80 column report that lists the contents of the Journal Transaction File for all transactions or a range of transactions. It is printed in transaction number order and serves as a reference during Journal Transaction File Maintenance. 1 - 18 RECONSTRUCTING ACCOUNT BALANCES The Reconstruct Account Balances function performs an Account Balances Update from the first period in the current processing year. (An Account Balances Update is normally performed from the last period you processed.) When and why you might need to perform this function is not predictable. But whatever the reason, if your account balances do not reflect the transactions in the Journal Transaction File, the answer is to reconstruct account balances. CLONING A CHART OF ACCOUNTS The Chart of Accounts Cloning function is designed for those users who are processing for more than one company, and the companies they are processing use the same or very similar Charts of Accounts. The cloning function copies the Chart of Accounts from a designated company into the Chart of Accounts File for the company being processed. COMBINING GENERAL LEDGERS The Combining General Ledgers function allows the consolidation of multiple companies' general ledgers into one. ================================================================= 1 - 19 ================================================================= GETTING STARTED ================================================================= GETTING STARTED guides you through the procedure for setting up your General Ledger files in preparation for beginning your daily routine of entering journal transaction entries, and printing financial statements and reports. PROCEDURE The procedure outlined here assumes that you have completed the Levinson Lyon Guide To Operations, and that specifically, you: - Have installed the Levinson Lyon Master Menu and the General Ledger application - Have defined your computer configuration in the Computer Definition File - Have established a record in the Company File for the company(s) you will be processing - Have selected a company for processing - Are familiar with the file maintenance and data entry procedures......e.g. entering dates and dollar amounts, formatting reports, etc. During the getting started procedure, you will: 1. Initialize the General Ledger data files. 2. Display the General Ledger menu. 3. Set up the General Ledger general files and print their contents. ================================================================= 2 - 1 ================================================================= INITIALIZING THE GENERAL LEDGER DATA FILES ================================================================= Initializing data files prepares your data disk or diskette to receive data. (Levinson Lyon expects to find your data on the disk or diskette in the drive designated for General Ledger in the Company File.) During the file initialization procedure, you will be asked to answer a number of questions regarding the scope of your operations........e.g. How many Balance Sheet accounts do you have? Levinson Lyon will use the information you provide to initialize your data files. (Although Levinson Lyon files will expand automatically within the storage limitation of your data disk or diskette, initializing files which conform to the scope of your operations will maximize operating efficiency.) Answers to the questions should be based on your current needs with allowances for any immediate expansion. In any case, do not labor over your answers. As long as you do not waste disk space by entering numbers which grossly exceed your needs, a rough estimate is all that is required. SELECTION o Display the Master Menu and Select - Initialize Data Files Enter 5 - General Ledger 2 - 2 ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** PASSWORD ENTRY *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ *** ENTER PASSWORD FOR *** ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ ³ ³ ³ ³ ³ ³ ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ ÉÍÍÍÍÍ» or º Esc º to return to the MENU ÈÍÍÍÍͼ GENERAL LEDGER The General Ledger is shipped with: - "GL" installed as the password for LIMITED access, and - "GLF" installed as the password for FULL access. (See the Levinson Lyon Guide To Operations for the procedure for changing passwords.) o Enter "GLF" or the password you have assigned for FULL access to General Ledger 2 - 3 Note that as an added security precaution, password characters are displayed as graphic block characters as they are entered. When the password is entered correctly, the file initialization questions will be displayed. ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** INITIALIZE DATA FILES *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ ³ ³ 1 - Initialize new company ³ ³ 2 - Initialize with override ³ ³ 3 - Initialize selected files ³ ³ 4 - Return to menu ³ ³ ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º Enter Selection: .. º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ 1 - Initialize new company o If you are initializing General Ledger files for the first time, enter "1" to continue. Levinson Lyon will display the initialization questions. 2 - 4 2 - Initialize with override Initializing with override allows you to change the number of records Levinson Lyon calculates for each file. The override feature should generally not be used except in extraordinary circumstances and preferably only on instructions from a member of the Levinson Lyon support staff. 3 - Initialize selected files Initializing selected files allows you to specify which files will be initialized (reinitialized). Selected files should only be initialized on instructions from a member of the Levinson Lyon support staff. 2 - 5 ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º INITIALIZE GENERAL LEDGER FILES º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ ³ ³ 1. How many divisions do you have? ..... ³ ³ 2. How many departments do you have? ..... ³ ³ 3. How many Balance Sheet accounts do you have? ..... ³ ³ 4. How many Income Statement accounts do you have? ..... ³ ³ 5. How many accounts will you be entering budgets for? ..... ³ ³ 6. How many journal entries will you be making each period? ..... ³ ³ ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ F1 -When Ready F2 -Clear Esc -Return to Menu 1 - How many division do you have? Each division you will be printing an Income Statement for requires one record in the Division Name File. The number you enter will determine the amount of disk space that will be reserved for the Division Name File. o Enter the maximum number of division names you have, or expect to have in the immediate future. 2 - 6 2 - How many departments do you have? Each department you will be printing an Income Statement for requires a record in the Department Name File. The number you enter will determine the amount of disk space will be reserved for the Department Name File. o Enter the maximum number of department names you have, or expect to have in the immediate future. 3 - How many Balance Sheet accounts do you have? 4 - How many Income Statement accounts do you have? Each Balance Sheet and Income Statement account requires a record in the Chart of Accounts File and the Account Balances File. The number you enter will determine the amount of disk space that will be reserved for those files. Your Income Statement entry will be automatically expanded to accommodate divisions and departments. o Enter the number accounts you have in your Balance Sheet and Income Statements. 2 - 7 5 - How many accounts will you be entering budgets for? Each budgeted account you have requires a record in the Budget File. The number you enter will determine how much disk space is reserved for the Budget File. Your entry will be automatically expanded to accommodate divisions and departments. o Enter the number of General Ledger accounts you will be entering budgets for. 6 - How many Journal Transaction Entries will you be making each period? Each journal transaction entry requires a record in the Journal Transaction File. The number you enter will help determine how much file space will be reserved for the Journal Transaction File. Your entry will be automatically expanded to accommodate next-year processing. That is, extra space will be allocated to accommodate the extra periods required to continue processing while the current year is left open in anticipation of year-end closing adjustments. o Enter the number of Journal Transaction entries you expect to make each period. 2 - 8 When Ready o When the form is complete, press to continue. Levinson Lyon will calculate and display the storage space required for your operations. The "space to be taken by new files", both bytes and percentage, represents the space required for files with a predictable size. However, Levinson Lyon also uses a number of work files which vary in length and may or may not be present at any given time. Initializing files for more than 80% of storage capacity is therefore not recommended. ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** INITIALIZE DATA FILES *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ ³ ³ ³ ³ Total disk space: bytes 100 % ³ ³ ³ ³ Currently used disk space: bytes % ³ ³ ³ ³ Space to be taken by new files: bytes % ³ ³ ³ ³ Total after initialization: bytes % ³ ³ ³ ³ ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ ÉÍÍÍÍÍ» º ÄÙ º to INITIALIZE files ÈÍÍÍÍͼ ÉÍÍÍÍÍ» or º Esc º to return to OPTIONS ÈÍÍÍÍͼ 2 - 9 INITIALIZE files o If the total initialization percentage is less than 80%, you may press to continue with the initialization process. Levinson Lyon will: 1. Initialize the General Ledger files, and 2. Return to the menu. ================================================================= 2 - 10 ================================================================= DISPLAYING THE GENERAL LEDGER MENU ================================================================= If you have initialized the General Ledger files, then you are ready to display the General Ledger menu. SELECTION o Select - Accounting Applications Enter 5 - General Ledger PASSWORD o When you are prompted to do so, enter "GLF" or the password you have assigned to General Ledger for Full Access. ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** GENERAL LEDGER SYSTEM MENU *** v2.12 º º º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ *** PROCESS SELECTION *** ³ ³ *** JOURNAL PROCESSING *** ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ - Journal Processing ³ ³ 1 - Journal Transaction Entry ³ ³ - Special Journal Processing ³ ³ 2 - Journal Transaction Report ³ ³ - Financial Reporting ³ ³ 3 - Journal Transaction Correction ³ ³ - Year-End Processing ³ ³ 4 - Account Balances Update ³ ³ - File Maintenance ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ ³ - File Listing ³ ³ - AutoPilot ³ ³ - Utilities ³ ³ - to Return to Master Menu ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º PLEASE ENTER YOUR SELECTION .. º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ 2 - 11 ================================================================= SETTING UP THE GENERAL FILES ================================================================= The general files maintain information which is used repeatedly for General Ledger functions............e.g. Budget File, Department Name File, etc. The Levinson Lyon General Ledger combines information from the general files, along with the journal transactions you routinely enter, to produce financial statements and reports. With the exceptions of the Chart of Accounts File and the General Ledger System Control File, the general files are optional. Each optional file, however, supports an optional General Ledger function which cannot be performed unless the file that supports that option has been set up. PROCEDURE Set up the following files and print their related listings. 1. Statement and Titles Comments File 2. Chart of Accounts File 3. Division Name File (optional) 4. Department Name File (optional) 5. Schedule File (optional) 6. Account Balances File (optional) 7. Budget File (optional) 8. Gross Profit Inventory Adjustment File (optional) 9. Tax Accrual Adjustment File (optional) 10. Journal Name File (optional) 11. System Control File ================================================================= 2 - 12 ================================================================= STATEMENT TITLES AND COMMENTS FILE ================================================================= The Statement Titles and Comments File is a single record file that maintains optional information which may be printed at the top and/or bottom of each page of your: - Balance Sheet - Income Statement - Statement of Changes - Statement of Funds Flow SELECTION o Select - File Maintenance Enter 7 - Statement Titles and Comments ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** STATEMENT TITLES AND COMMENTS *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ Top .................................................. ³ ³ Comment: .................................................. ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Balance Sheet ³ ³ Title: .................................................. ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Income Statement ³ ³ Title: .................................................. ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Statement of Changes ³ ³ Title: ................................................. ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Statement of Funds Flow ³ ³ Title: .................................................. ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Bottom .................................................. ³ ³ Comment: .................................................. ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ F1 -Write Data to Disk F2 -Clear Esc -Return to Menu 2 - 13 Top Comment: The contents of the two top comment lines will be centered and printed on lines 6 and 7 of each page of your: - Balance Sheet - Income Statement - Statement of Changes - Statement of Funds Flow o Enter any comment you would like included on lines 6 and 7 of each page of your: - Balance Sheet - Income Statement - Statement of Changes Balance Sheet Title: The contents of the balance sheet title line will be printed on line one of each page of your balance sheet. o Enter any title or comment you would like printed on line one of each page of your balance sheet. Income Statement Title: The contents of the income statement title line will be printed on line one of each page of your income statement. o Enter any title or comment you would like printed on line one of each page of your income statement. 2 - 14 Statement of Changes Title: The contents of the Statement of Changes title line will be printed on line one of your Statement of Changes. o Enter any title or comment you would like printed on line one of each page of your statement of changes. Statement of Funds Flow: The contents of the Statement of Funds Flow title line will be printed on line one of your Statement of Funds Flow. o Enter any title or comment you would like printed on line one of each page of your statement of changes. 2 - 15 Bottom Comment: The contents of the two bottom comment lines will be centered and printed on the last two lines of of each page of your: - Balance Sheet - Income Statement - Statement of Changes - Statement of Funds Flow o Enter any comment you would like included on the last two lines of each page of your: - Balance Sheet - Income Statement - Statement of Changes ================================================================= 2 - 16 ================================================================= CHART OF ACCOUNTS FILE ================================================================= The Chart of Accounts File is a multiple record file that maintains a record for each account in your Chart of Accounts. (We generally refer to the Chart of Accounts File as "your Chart of Accounts".) Your Chart of Accounts will determine: - Which accounts you may use as posting accounts - What your financial statements will look like - Which accounts will be included in totals - Which accounts will be closed to other accounts each time you perform an interim or year-end closing - Etc. Each record in your Chart of Accounts maintains an: - Account number - Account description - Account type In addition, depending on the account type, each record may include other information required for printing, calculating, or year-end closings. Setting up your Chart of Accounts is by far the most crucial step in setting up your Levinson Lyon General Ledger. In addition to the typical Levinson Lyon file maintenance procedure, which you may use to control all of the variables in your Chart of Accounts, you may begin setting up your Chart of Accounts by using a simplified procedure to generate a core of accounts and establish a record for each of those accounts in your Chart of Accounts. When the simplified procedure is complete, you may: 1. Print a Chart of Accounts Listing, and 2. Examine the resulting statements by printing a Balance Sheet and Income Statement with zero balances. 2 - 17 You may then use the Chart of Accounts File Maintenance function to: - Expand your Chart of Accounts beyond the core accounts - Add divisional and departmental accounts - Design summary statements to be printed with your Balance Sheet and/or Income Statements - Perform routine maintenance, e.g. adding additional posting accounts as you need them Of course you may bypass the simplified setup procedure and use the Chart of Accounts File Maintenance function to set up a Chart of Accounts from scratch, but we would like to suggest that you not do that unless you have performed the simplified setup and examined the Chart of Accounts which is generated by that procedure. Once you have a Chart of Accounts, if you need another one which is the same as or similar to one you have, you may use the Chart of Accounts Cloning function discussed in Section 7. In any case, before you begin setting up your Chart of Accounts, you need to know a few things about Levinson Lyon account numbers. ================================================================= 2 - 18 ================================================================= Levinson Lyon ACCOUNT NUMBERS ================================================================= The backbone of the Levinson Lyon General Ledger system is the account number. Levinson Lyon uses eight digit account numbers. The first four digits identify primary accounts and the second four digits identify sub-accounts. Primary and sub-account designations are separated by a hyphen (-), but all 8 digits are required to identify an account. EXAMPLE 6010-1001 6010-1002 The example above shows two account numbers. The accounts are different because they have different sub-account numbers, but both accounts belong to the same "primary" account (6010). Each time you print a Balance Sheet and/or Income Statement: 1. The balances for your accounts will be printed in account number order, and 2. Amounts posted to sub-accounts are combined and reported as one amount for each primary account. In addition, amounts posted to Income Statement sub-accounts may be reported with Divisional and/or Departmental Income Statements. Divisional Income Statements provide a second-level breakdown of income and expenses, which allows for separate reporting of sub-entities, e.g. regional breakdowns, product line breakdowns, etc. Departmental Income Statements provide a third-level breakdown of income and expenses, which allows for separate reporting of sub-entities one level below the divisional level. This can include breakdowns by cost center, manager, location, job, etc. 2 - 19 SCENARIO 1 "Company 1" uses only primary account numbers. Two of their revenue accounts are: 6000 - 0000 Sales - LA 6100 - 0000 Sales - NY When financial statements are prepared, "Company 1" may print an Income Statement for the company only. SCENARIO 2 "Company 2" reports revenue by divisions. Revenue in Los Angeles is distributed to: 6000 - 0100 Sales - LA, Division 01 6000 - 0200 Sales - LA, Division 02 When financial statements are prepared, "Company 2" may print Income Statements by divisions and for the company. SCENARIO 3 "Company 3" reports revenue by departments and divisions. Revenue in Los Angeles is distributed to: 6000 - 0101 Sales - LA, Division 01, Department 0101 6000 - 0102 Sales - LA, Division 01, Department 0102 6000 - 0201 Sales - LA, Division 02, Department 0201 6000 - 0202 Sales - LA, Division 02, Department 0202 When financial statements are prepared, "Company 3" may print Income Statements by departments, divisions, and for the company. 2 - 20 Theoretically, you may have: 9,999 Company (primary) Accounts 99 Divisions below each primary account 99 Departments below each division account (9,999 Departments without divisions) The practical limits depend on your computer's storage capacity. In addition to departmental and divisional Income Statements, you may define schedules which will report a range of accounts from your Chart of Accounts and which may optionally include sub-account detail. So even if you are not posting by departments and divisions, you may still want to use sub-accounts to simplify the appearance of your Balance Sheet and/or Income Statement and use supporting schedules to show the detail. We will discuss setting up sub-accounts for divisional, departmental, and schedule reporting later. The first thing you need to do, regardless of whether or not you will be using sub-accounts, is determine what your company (combined) financial statements will look like, and that's the task the simplified setup procedure can help you with the most. ================================================================= 2 - 21 ================================================================= SIMPLIFIED CHART OF ACCOUNTS SETUP ================================================================= The simplified Chart of Accounts setup allows you to create a formatted Chart of Accounts for a: 1. Corporation, 2. Sole proprietorship, or 3. Partnership. The simplified procedure displays an entire, preformatted, Chart of Accounts in groups of 13 accounts at a time. During the simplified setup procedure you may: - Change account numbers and descriptions - Delete accounts - Add a limited number of accounts Although you may enter both primary and sub-account numbers during the simplified setup, doing so is not recommended. The simplified setup was designed primarily for establishing a core of primary (company) accounts. Once the procedure is started, it must be completed, and you cannot go backwards, i.e. you cannot display previous groups of accounts. During the procedure you may also display a simulated section from the financial statement that would result from generating the core Chart of Accounts. It is, however, only a simulation, and it will not reflect any changes you might make during the procedure. To see the effects of any changes you make you will need to print zero balance financial statements when the procedure is complete. 2 - 22 As previously discussed, each account in your Chart of Accounts also has an account type. Depending on the account type, a Chart of Accounts record may include other variables, e.g. which column to use for printing. During the simplified procedure the account type and its other variables will be displayed, but you will not be permitted to change them. (We explain account types and their related variables when we discuss Chart of Accounts File Maintenance, but if you can live with the Chart of Accounts which is generated by the simplified setup procedure, you can skip Chart of Accounts File Maintenance and forget about account types and all of their related variables.) Note that the simplified Chart of Accounts setup can only be performed immediately after your Chart of Accounts and Account Balances Files have been initialized. If you need to repeat the procedure, you must return to the Master Menu and reinitialize those files. (Reinitializing a file deletes the contents of that file, so don't reinitialize unless you are prepared to start over.) SELECTION o Select - Utilities Enter 1 - Simplified Chart of Accts Setup 2 - 23 ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** SIMPLIFIED CHART OF ACCOUNTS SETUP *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ Organization type: ³ ³ ³ ³ orporation ³ ³ ole Proprietorship ³ ³

artnership . ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ ÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ ÉÍÍÍÍÍ» ÉÍÍÍÍÍ» º ÄÙ º to Continue º Esc º to Return to Menu ÈÍÍÍÍͼ ÈÍÍÍÍͼ Organization Type: Each time you perform the Simplified Setup procedure, you may generate a core Chart of Accounts for a: 1. Corporation, 2. Sole Proprietorship, or 3. Partnership. In addition to the changes you may make during the procedure, there are some differences built into the equity sections for each type of organization. Corporations are set up with equity sections containing accounts for common stock and retained earnings (terminology related to corporate entities). Sole proprietorships are set up with one set of capital and draw accounts. 2 - 24 Partnerships are set up with two sets of capital and draw accounts. A 50/50 partnership relationship is assumed during the setup. If more partners are required, or the division of equity is other than 50/50, then corrections and/or additions must be made through Chart of Accounts Maintenance after the Simplified Chart of Accounts is complete. o Enter the letter (C, S, or P) corresponding to your organization. If your entry displays a flashing arrow, confirm that you have entered a "C, S, or P". Other characters will not be accepted. S I M P L I F I E D C U R R E N T A S S E T S S E T U P ÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ C D ACCT O / ÄÄRANGEÄÄ LINE G/L ACCOUNT DESCRIPTION TYPE L C FROM TO SKIP $ ÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ 1000 - 0000 ASSETS................... 11 1 1010 - 0000 CURRENT ASSETS........... 12 1020 - 0000 CASH IN BANK............. 00 2 D 1030 - 0000 ......................... 00 2 D 1040 - 0000 ......................... 00 2 D 1050 - 0000 ACCOUNTS RECEIVABLE...... 01 2 D 1060 - 0000 ......................... 01 2 D 1070 - 0000 INVENTORY................ 21 2 D 1080 - 0000 ......................... 01 2 D 1090 - 0000 ......................... 01 2 D 1100 - 0000 PREPAID EXPENSES......... 01 2 D 1110 - 0000 ......................... 01 2 D 1120 - 0000 ......................... 01 2 D 1980 - 0000 SINGLE UNDERLINE......... 14 2 1990 - 0000 TOTAL CURRENT ASSETS..... 13 3 D 1000 1990 1 N ÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ ÉÍÍÍÍ» ÉÍÍÍÍ» º F1 º to Process º F2 º for Illustration ÈÍÍÍͼ ÈÍÍÍͼ 2 - 25 G/L ACCOUNT Account numbers can be changed as long as they are: 1. Numeric, and 2. In ascending order, e.g. 1000-0000 1010-0000, 1010-0001, etc.) As previously discussed, you may have 9,999 primary accounts, so don't squeeze your account numbers together. Account numbers which increase by 10 each time, for example, leave room to expand the accounts in a given range of accounts at a later date. (Once an account becomes part of your Chart of Accounts, its number cannot be changed without deleting that account, and you cannot delete an account if that account has transactions on file.) o Press to accept the account number displayed, or Enter any other account number which is larger than the previous number. If your entry results in a flashing arrow, verify that the number you have entered is larger than the previous account number. A number that is smaller than the previous number will not be accepted. 2 - 26 Description The description, associated with each account number, is used throughout the General Ledger system. During the Simplified Setup procedure, the description also determines whether or not an account will be included in the resulting Chart of Accounts. Accounts with descriptions will be included in the core Chart of Accounts. Accounts without descriptions will not be included in the core Chart of Accounts. Adding a description to an account that does not have a description will add that account to the core Chart of Accounts, while deleting a description will exclude that account from the core Chart of Accounts. Descriptions which appear boldfaced (high intensity) are format accounts which, although they are not mandatory, are highly recommended and you should give them extra consideration before you delete them. Descriptions which are highlighted (reverse-video) are mandatory accounts and cannot be deleted, except via Chart of Accounts File Maintenance. In addition to adding and deleting accounts by adding or deleting descriptions, you may also change an account's description. 2 - 27 SCENARIOS A company has a checking account in Union Bank. The description provided in the Simplified Current Assets Setup for account 1020-0000 is CASH IN BANK. The company changes the description for account 1020-0000 to "CASH IN BANK - UNION BANK". All reports containing account descriptions will now report account 1020-0000 as "CASH IN BANK - UNION BANK". Another company is in the service business and has no inventory, so the inventory account provided in the Simplified Current Assets setup section (1070-0000) doesn't really apply. The company uses the key to delete the description (INVENTORY) to exclude that account from the resulting Chart of Accounts. The same company also maintains two bank accounts, one in Union Bank and the other in Wells Fargo Bank. The Simplified Current Assets Setup provides for only one account as CASH IN BANK. However, there are two unused (blank) accounts immediately following CASH IN BANK. By entering "CASH IN BANK - WELLS FARGO" as the description for one of the blank accounts, the company includes that account in the resulting Chart of Accounts. 2 - 28 o Press to accept the description displayed, or Enter the description of your choice, or Press the key to delete the description and exclude that account from the resulting Chart of Accounts, or If a description is not displayed, you may enter a description to include that account in the resulting Chart of Accounts. If your entry results in a flashing arrow, confirm that you are not attempting to delete a mandatory account. Highlighted (reverse video) accounts cannot be deleted. 2 - 29 Process o When you are satisfied with the accounts in each group of accounts, press . Levinson Lyon will: 1. Establish a record for each account in your Chart of Accounts, and 2. Display the next group of accounts. When the last group of accounts has been processed, your Chart of Accounts will be complete, and you should: 1. Print a Chart of Accounts Listing, and 2. Print a Balance Sheet and Income Statement with zero balances. ================================================================= 2 - 30 ================================================================= CHART OF ACCOUNTS FILE LISTING ================================================================= The Chart of Accounts File Listing is an 80 column report that lists the contents of the Chart of Accounts File for all accounts or a range of accounts. It serves as a reference during: - Journal Transaction Entry / Correction - Journal Transaction File Maintenance - Chart of Accounts File Maintenance - Budget Maintenance - Schedule Maintenance - Gross Profit Inventory Adjustment Maintenance - Tax Accrual Adjustment Maintenance - Account Balances Maintenance - System Control File Maintenance You should print the Chart of Accounts File Listing: 1. After setting up your Chart of Accounts, and 2. After making any modifications to your Chart of Accounts. The listing is printed in Account Number order and includes: - Account number - Account description - Account type * Print column * Debit/Credit * Starting/Ending Account numbers (for totaling) * Line skip control * Dollar sign formatting * Partnership allocation percentages * Year-end closing accounts Variables marked with an (*) are a function of the account type. You may also optionally exclude all non-posting accounts and all but the first sub-account for each primary account. 2 - 31 SELECTION o Select - File Listings Enter 1 - Chart of Accounts ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** CHART OF ACCOUNTS LISTING *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ Starting Account: .... - .... ³ ³ ³ ³ Ending Account: .... - .... ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ ³ ³ Include Formating ³ ³ Accounts? (Y/N): . ³ ³ ³ ³ Suppress Sub-accounts? (Y/N): . ³ ³ ³ ³ Print Mode: ³ ³ ³ ³

rinter isplay ile . ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ F1 -Print Report F2 -Clear Esc -Return to Menu Include Format Accounts? o Enter "Y" if you want non-posting (format) accounts to be included in your Chart of Accounts Listing. o Enter "N" to print the Chart of Accounts Listing without the format accounts. 2 - 32 Suppress Sub-accounts? o Enter "Y" if you do not wish to see repetitive sub-accounts for the same primary account printed on Chart of Accounts Listing. This option will cause only the first occurrence of a primary account number to be printed. Subsequent sub-accounts bearing the same primary account will not be printed. o Enter "N" to include all sub-account detail on the Chart of Accounts Listing. Print Report o When your report format is complete, press to continue with the printing procedure. ================================================================= 2 - 33 ================================================================= SETTING UP DEPARTMENTS AND DIVISIONS ================================================================= As previously discussed, you may have 9,999 primary accounts. You may also have 9,999 sub-accounts for each primary account, with each four-digit sub-account number defining a unique department. Used in conjunction with divisional reporting, the first two numbers of each department may be used to define a division which will combine and report revenue and expenses for departments within a division for each primary account. We will use the following example to clarify how the amounts and the descriptions used for those amounts are derived from the Chart of Accounts and the Account Balances File for: 1. Combined Income Statements, 2. Departmental Income Statements, and 3. Divisional Income Statements. The example shows a range of account numbers and their descriptions, taken from a Chart of Accounts, and the balance of the amounts posted to those accounts, taken from the Account Balances File. 2 - 34 EXAMPLE ACCT ACCT NUMBER DESCRIPTION BALANCE 6010-0000 Sales 0 6010-1000 East Sales 0 6010-1010 Sales-NY 500 6010-1011 Sales-MS 100 6010-1012 Sales-NJ 100 6010-1100 West Sales 1000 7510-0000 Advertising 0 7510-1000 East Advertising 0 7510-1010 Advertising-NY 300 7510-1011 Advertising-MA 100 7510-1012 Advertising-NJ 100 7510-1100 West Advertising 500 7520-0000 Promotions 0 7520-1000 East Promotions 0 7520-1010 Promotions-NY 200 7520-1011 Promotions-MA 100 7520-1012 Promotions-NJ 100 7520-1100 West Promotions 200 8050-0000 Salaries 0 8050-1000 East Salaries 0 8050-1010 Salaries-NY 2000 8050-1011 Salaries-MA 100 8050-1012 Salaries-NJ 100 8050-1100 West Salaries 1000 Our example shows four primary accounts (6010, 7510, 7520, and 8050). Four sub-accounts are also defined as departments (1010, 1011, 1012, and 1100), and two divisions are defined as Division 10 and Division 11. 2 - 35 The following sections from combined, departmental, and divisional Income Statements were derived from our example. Note that the column on the left lists the accounts used for the descriptions, and the column on the right lists the account(s) used to report the amounts. ("X" indicates any number in that position.) COMBINED STATEMENT 6010-0000 Sales 1700 (6010-XXXX) 7510-0000 Advertising 1000 (7510-XXXX) 7520-0000 Promotions 600 (7520-XXXX) 8050-0000 Salaries 3200 (8050-XXXX) The combined statement combines and reports the total amount posted to all accounts with the same primary account number. For example, the "SALES" account description is taken from the first 6010 account (6010-0000), and the amount was calculated by combining the amounts for all 6010 accounts. DEPARTMENT 1010 STATEMENT 6010-1010 Sales NY 500 (6010-1010) 7510-1010 Advertising NY 300 (7510-1010) 7520-1010 Promotions NY 200 (7520-1010) 8050-1010 Salaries NY 2000 (8050-1010) The departmental statement is relatively straight forward. In our "Department 1010 Statement" there can only be one account "1010" for each primary account, and the statement reports the description used for that account and the amount posted to that account for each primary account, i.e. the description and amount account numbers are always the same. 2 - 36 DIVISION 10 STATEMENT 6010-1000 East Sales 700 (6010-10XX) 7510-1000 East Advertising 500 (7510-10XX) 7520-1000 East Promotions 400 (7520-10XX) 8050-1000 East Salaries 2200 (8050-10XX) The divisional statement is more like a combined statement than a departmental statement. It combines the amounts for all departments beginning with the same two sub-account numbers for each primary account. In our Division 10 Statement, for example, the "EAST SALES" description comes from the first division "10" account (6010-1000), and the amount includes all amounts for accounts beginning with "6010-10" Note that: - The account description always comes from the first occurrence of that account in the Chart of Accounts. For combined statements it is the first occurrence of the primary account. For the divisional statements it is the first occurrence of the divisional account within each primary account. (For departmental statements, the departmental account only occurs once within each primary account.) In our example, the first occurrence of each primary and divisional account has been reserved for description purposes, i.e. all amounts have been posted to sub-accounts and the first occurrence of each account has a zero balance. - The only difference between the Combined Statement and the Division 10 Statement is the amounts posted to the Department 1100 accounts. - A Division 11 Statement, for the accounts in our example, would be identical to a Department 1100 Statement. 2 - 37 - In addition to printing Income Statements by departments and divisions, amounts posted to sub- accounts defined or not defined as departments or divisions may also be reported with supporting financial schedules for both the Income Statement and the Balance Sheet. (See Setting Up Financial Schedules.) PROCEDURE If you will be printing departmental and/or divisional Income Statements: 1. Define your departments and divisions in the Department Name and Division Name File respectively, 2. Use the Department Quik Add function to enter departmental sub-accounts for the appropriate Income Statement accounts, or 3. Use the Chart of Accounts File Maintenance function to enter departmental sub-accounts for the appropriate Income Statement accounts, and 4. Print the resulting Chart of Accounts File Listing and zero balance Income Statements. ================================================================= 2 - 38 ================================================================= DIVISION NAME FILE ================================================================= The Division Name File is a multiple record file that maintains a record for each Division you define. Each record maintains: - A division number - A division name If you do not intend to print Divisional Income Statements, then you may proceed to the Department Name File. Reports based, all or in part, on the contents of the Division Name File include: - Division File Listing - Divisional Income Statements SELECTION Select - File Maintenance Enter 4 - Division Name 2 - 39 ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** DIVISION NAME MAINTENANCE *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ ACTION: dd hange elete nquire . ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Division Number: .. ³ ³ ³ ³ Division Name: ......................... ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ F1 -Process F2 -Clear F3 -Prev F4 -Next F5 -First F6 -Last Esc -Menu ACTION o Enter "A" for ADD. Division Number: The Division Number identifies the location of the division record in the Division Name File. Each Division Number must be unique and may be from one to two digits long. Note that the Divisional Income Statements total the amounts posted to sub-accounts (departments) beginning with the division number for each primary account. o Enter the number you will be using to identify the division. 2 - 40 Division Name: The division's name will be printed as a heading on the division's Income Statement. o Enter the division's name. Process - Return to Menu o When the form is complete, press to add the division to the Division Name File. When the action is complete, you may: 1. Define another division, or 2. Press to return to the menu. ================================================================= 2 - 41 ================================================================= DIVISION NAME FILE LISTING ================================================================= The Division Name File Listing is an 80 column report that lists the contents of the Division Name File for all divisions or a range of divisions. It serves as a reference during: - Division Name File Maintenance - Chart of Accounts File Maintenance - Divisional Income Statement printing You should print the Division Name File Listing: 1. After setting up the Division Name File, and 2. After making modifications to the Division Name File. The listing is printed in Division number order and includes: - Division Number - Division Name SELECTION o Select - File Listings Enter 4 - Division Name 2 - 42 ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** DIVISION NAME LISTING *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ Starting Division Number: .. ³ ³ ³ ³ Ending Division Number: .. ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Print Mode: ³ ³ ³ ³

rinter isplay ile . ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ F1 -Print Report F2 -Clear Esc -Return to Menu Print Report o When the report format is complete, press to continue with the printing procedure. ================================================================= 2 - 43 ================================================================= DEPARTMENT NAME FILE ================================================================= The Department Name File is a multiple record file that maintains a record for each Department you define. Each record maintains: - A department number - A department name If you do not intend to print Departmental Income Statements, you may proceed to "Setting Up Financial Schedules". Reports based, all or in part, on the contents of the Department Name File include: - Department File Listing - Income Statement SELECTION Select - File Maintenance Enter 5 - Department Name 2 - 44 ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** DEPARTMENT NAME MAINTENANCE *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ ACTION: dd hange elete nquire . ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Department ID: .... ³ ³ ³ ³ Department Name: ......................... ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ F1 -Process F2 -Clear F3 -Prev F4 -Next F5 -First F6 -Last Esc -Menu ACTION o Enter "A" for ADD. Department ID: The department ID identifies the location of the department in the Department Name File. Each department ID must be unique and may be from one to four digits long, i.e. it is a four digit sub-account number. Note that if a department is to be included in a Divisional Income Statement, that department's first two numbers must be the same as the division number. 2 - 45 o Enter the number you will be using to identify the department. Department Name: The department's name will be printed as a heading on the department's Income Statement. o Enter the Department's Name Process - Return to Menu o When the form is complete, press to add the department to the Department Name File. When the action is complete, you may: 1. Define another department, or 2. Press to return to the menu. ================================================================= 2 - 46 ================================================================= DEPARTMENT NAME FILE LISTING ================================================================= The Department Name File Listing is an 80 column report that lists the contents of the Department Name File for all departments or a range of departments. It serves as a reference during: - Department Name File Maintenance - Chart of Accounts Setup - Departmental Income Statement printing You should print the Department Name File Listing: 1. After setting up the Department Name File, and 2. After making modifications to the Department Name File. The listing is printed in Department number order and includes: - Department Number - Department Name SELECTION o Select - File Listings Enter 5 - Department Name 2 - 47 ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** DEPARTMENT NAME LISTING *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ Starting Dept ID: .... ³ ³ ³ ³ Ending Dept ID: .... ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Print Mode: ³ ³ ³ ³

rinter isplay ile . ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ F1 -Print Report F2 -Clear Esc -Return to Menu Print Report o When the report format is complete, press to continue with the printing procedure. ================================================================= 2 - 48 ================================================================= QUICK DEPARTMENT ADD ================================================================= The Quick Department Add function allows you to add department sub-accounts for a range or ranges of primary accounts in your Chart of Accounts. Levinson Lyon will use the primary account's description for each of the department sub-accounts you enter. If you like, you can later use Chart of Accounts File Maintenance to customize the description for each of the departments added. SELECTION o Select - Utilities Enter 5 - Quick Department Add ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º * * * QUICK DEPARTMENT ADD * * * º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ Account Number Ranges To Add: From To ³ ³ .... .... ³ ³ .... .... ³ ³ .... .... ³ ³ .... .... ³ ³ .... .... ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Department Numbers (Sub-accounts) to Add: ³ ³ ³ ³ .... .... .... .... .... ³ ³ .... .... .... .... .... ³ ³ .... .... .... .... .... ³ ³ .... .... .... .... .... ³ ³ .... .... .... .... .... ³ ³ ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ F1 -When Ready F2 -Clear Esc -Return to Menu 2 - 49 From To Levinson Lyon will add department sub- account numbers for each of the primary accounts within the range you specify. If you only want to add sub-accounts for one primary account, enter the same primary account number for "To" and "From". o Using your Chart of Accounts File Listing as reference, enter the range of primary accounts for which you will be adding department sub-accounts. Department Numbers (Sub-Accounts) to Add: You may add up to 25 department numbers for each of the primary accounts in the ranges specified. o Enter the department numbers (sub- accounts) to be added for the primary accounts in the ranges you have specified. 2 - 50 Process - Return to Menu o When the form is complete, press to add the department numbers for the primary accounts specified. When the action is complete, you may: 1. Continue adding sub-accounts for ranges of primary accounts, or 2. Press to return to the menu, and 3. Print the resulting Chart of Accounts File Listing and a zero balance financial statement for the departments and/or divisions you have added to your Chart of Accounts. ================================================================= 2 - 51 ================================================================= SETTING UP SUPPORTING SCHEDULES ================================================================= As previously discussed, amounts posted to sub-accounts are combined and reported as one amount for each primary account, for both the Balance Sheet and Income Statement. For Income Statement accounts, amounts posted to sub- accounts may be reported with departmental and/or divisional statements as long as the appropriate departments and divisions have been defined in the Department Name and Division Name Files. Amounts posted to Balance Sheet and Income Statement accounts (primary and sub-accounts), may also be reported with supporting financial schedules. Financial schedules are typically used: 1. To simplify the appearance of the Balance Sheet or Income Statement, 2. To prepare detailed reports for persons who do not need to see an entire financial statement, and/or 3. To prepare a report that includes departmental detail for all departments. Each time you print financial statements, you may optionally include financial schedules. Financial schedules are similar to financial statements with the exceptions that: 1. Schedules may optionally report amounts posted to sub-accounts, and 2. Schedules will only include those accounts within the range of accounts defined for each schedule. 2 - 52 SCENARIOS A company has three bank accounts, but needs to show a cash total on its Balance Sheet. The company sets up the following accounts: 1000-0000 Cash 1000-0001 Cash in Bank One 1000-0002 Cash in Bank Two 1000-0003 Cash in Bank Three The company also designs a supporting schedule which includes the CASH account (1000). The Balance Sheet will show the company's total cash, and the supporting schedule will include: Cash in Bank One Cash in Bank Two Cash in Bank Three Another company would like an Income Statement that reports total sales, but they would also like to distribute a sales report to department managers showing departmental sales for all departments. The company has already set up sub-accounts for its departments and has the combined and departmental Income Statements it needs, but the company would still like a departmental "Sales Report". The company defines a schedule that includes their primary sales account number and sub-account detail. The resulting sales report will now be included each time the company prints an Income Statement with schedules. 2 - 53 Note that: - You may define financial schedules even if you are not posting to sub-accounts. - The parameters you enter each time you print financial statements will also apply to financial schedules, e.g. printing a Divisional Income Statement will produce schedules with divisional amounts. PROCEDURE If you will be including financial schedules with your financial statements: 1. Define your schedules in the Schedule File, 2. Use the Chart of Accounts File Maintenance function to add any sub-accounts you may be using to the appropriate accounts, and 3. Print the resulting Chart of Accounts File Listing and zero balance financial statements, including schedules. ================================================================= 2 - 54 ================================================================= SCHEDULE FILE ================================================================= The Schedule File is a multiple record file that maintains a record for each financial schedule you design. Each Schedule File record maintains the information required to print one schedule, including: - Schedule ID - Schedule Title - Type (Balance Sheet or Income Statement) - Range of Accounts (one range per schedule) - Instructions for including (excluding) sub-accounts - The "normal" total type (credit or debit) If you will not be printing financial schedules, you may proceed to "Setting Up Summary Statements". Each time you print a Balance Sheet or Income Statement, you may optionally include the respective schedules. If you print a Balance Sheet, for example, and choose to include financial schedules, all of the schedules you have on file for the Balance Sheet will be included. They will be printed in schedule ID order, beginning with the first Balance Sheet schedule, and they will be printed per the instructions in the schedule's record. You may add schedules to the Schedule File at any time. You may also add accounts to any schedule in the Schedule File at any time by adding accounts to your Chart of Accounts within the range defined in the schedules record. The following instructions assume that you are adding a schedule to the Schedule File. SELECTION o Select - File Maintenance Enter 3 - Schedule 2 - 55 ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** SCHEDULE MAINTENANCE *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ ACTION: dd hange elete nquire . ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Schedule ID: .... ³ ³ ³ ³ Title: .................................................. ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Schedule of Accounts from: ³ ³ alance Sheet ³ ³ ncome Statement . ³ ³ ³ ³ G/L General Account - From: .... ³ ³ G/L General Account - To: .... ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Print Sub-Account Detail on Schedule? (Y/N): . ³ ³ ³ ³ Schedule Total is normally a: ³ ³ ebit ³ ³ redit . ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ F1 -Process F2 -Clear F3 -Prev F4 -Next F5 -First F6 -Last Esc -Menu ACTION o Enter "A" for Add. Schedule ID The schedule ID identifies the location of the schedule record in the Schedule File. Each schedule ID must be unique and may be any combination of up to four characters. o Enter the characters you will be using to identify the schedule. 2 - 56 Title The schedule title will be included on the: - Financial Schedule - Schedule File Listing o Enter a title for the schedule. Schedule of Accounts from: Levinson Lyon must be told whether this is: 1. A Balance Sheet schedule, or 2. An Income Statement schedule. o Enter the letter (B or I) corresponding to your selection. G/L General Account - From: G/L General Account - To: Each schedule you define prints the balances for all primary accounts within the range you define with the "from" and "to" account numbers. (Sub-account detail may also be included.) o Using your Chart of Accounts Listing as a reference, enter "from" and "to" account numbers. 2 - 57 Print Sub-Account Detail on Schedule? (Y/N): Each time you include schedules when financial statements are printed, each schedule will be printed with or without sub-accounts, depending on the instruction in each schedule record. Schedules printed with sub-account detail will include all accounts within the range of accounts defined for those schedules. Schedules printed without sub-account detail will combine the amounts posted to all sub-accounts for each primary account, i.e. schedules printed without sub-account detail will look like a section of the Income Statement. o Enter a "Y" to include or an "N" to exclude sub-accounts when the schedule is printed. 2 - 58 Schedule Total is normally a: ebit redit When the schedule is printed, Levinson Lyon calculates and prints a total for the accounts included in the schedule. If the schedule total should normally have a debit balance, a credit balance will be printed parenthetically. If the schedule total should normally have a credit balance, a debit balance will be printed parenthetically. o Enter the letter (D or C) corresponding to your selection. Process o When the schedule form is complete, press to add the schedule to the Schedule File. When the action is complete you may: 1. Enter another schedule, or 2. Press to return to the menu. ================================================================= 2 - 59 ================================================================= SCHEDULE FILE LISTING ================================================================= The Schedule File Listing is an 80 column report that lists the contents of the Schedule File for all schedules or a range of schedules. It serves as a reference during: - Schedule File maintenance - Financial report printing The Schedule File Listing should be printed: 1. After setting up the Schedule File, and 2. After any modifications have been made to the Schedule File. The listing is printed in schedule ID order and includes: - Schedule ID - Title - Type (Balance Sheet or Income Statement) - Range of Accounts - Sub-Accounts (Y/N) - Total Type (Debit or Credit) SELECTION o Select - File Listings Enter 3 - Schedule 2 - 60 ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** SCHEDULE FILE LISTING *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ Starting ID: .... ³ ³ ³ ³ Ending ID: .... ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Print Mode: ³ ³ ³ ³

rinter isplay ile . ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ F1 -Print Report F2 -Clear Esc -Return to Menu Print Report o When the report format is complete, press to continue with the printing procedure. ================================================================= 2 - 61 ================================================================= SETTING UP SUMMARY STATEMENTS ================================================================= In addition to financial statements and schedules, you may also design summary statements to summarize sections of your Balance Sheet and/or Income Statement. Like financial statements, summary statements are dependent upon the accounts in your Chart of Accounts. Designing a summary statement is like designing a miniature financial statement by adding a miniature Chart of Accounts to your Balance Sheet and/or Income Statement. The heart of the summary statement is the summary account (account type 24). Each summary account reports the total of the amounts in a designated range of accounts. The number of summary accounts you may have per summary statement is limited only by the space available in your Chart of Accounts. In addition to summary accounts, a summary statement may also include formatting and other totaling accounts. Each time you print a Balance Sheet or Income Statement, the relative summary statements will also be printed. 2 - 62 SCENARIO A company would like to have a summary statement that reports and totals some of its variable operating expenses. A schedule will not produce the desired results because the accounts that need to be summarized are scattered throughout the expense section of the company's Chart of Accounts. The company adds the following summary (type 24) accounts to the end of the Income Statement section of its Chart of Accounts: Account Description Type Range 9510-0000 UTILITIES 24 XXXX to XXXX 9520-0000 TELEPHONE 24 XXXX to XXXX 9530-0000 MAINTENANCE 24 XXXX to XXXX In addition, the company adds some formatting and totaling accounts to its Chart of Accounts which result in the following summary statement each time the company prints an Income Statement: VARIABLE EXPENSES UTILITIES xxxx.xx TELEPHONE xxxx.xx MAINTENANCE xxxx.xx ======== TOTAL VARIABLE EXPENSES xxxxx.xx 2 - 63 Note that: - The accounts which make up a summary statement should follow the last account in your Balance Sheet or Income Statement, and come before the relative "End of Statement" account. - The amount reported for each summary (type 24) account is the sum of the amounts posted to the summary account's designated range of accounts. - The parameters you enter each time you print financial statements will also apply to summary statements, e.g. printing a Divisional Income Statement will produce summary statements with divisional amounts. - A summary account will be included if the range it occurs in is totaled by another summary or totaling account. (This is not true for totaling accounts, which we will discuss later.) PROCEDURE If you are designing a summary statement for your Balance Sheet or Income Statement: 1. Use the Chart of Accounts Maintenance function to add the statement's summary, and any formatting and/or totaling accounts to your Chart of Accounts, 2. Print the Chart of Accounts Listing, and 3. Test your summary statements by printing a Balance Sheet and/or Income Statement with zero balances. ================================================================= 2 - 64 ================================================================= CHART OF ACCOUNTS FILE MAINTENANCE ================================================================= As previously discussed, the Chart of Accounts File is multiple record file that maintains a record for each account in your Chart of Accounts, i.e. it is your Chart of Accounts. We have previously discussed several circumstances that require the use of the Chart of Accounts File Maintenance function, including: - Modifying the primary accounts in the Chart of Accounts that was generated by the Simplified Setup procedure - Adding a sub-account structure for divisional Income Statements, departmental Income Statements, and/or financial schedules for your Balance Sheet and/or Income Statements - Adding a summary statement account structure to the accounts you use for your Balance Sheet and/or Income Statements In addition, you may also use the Chart of Accounts File function to set up a Chart of Accounts from scratch, although this is not recommended unless you have an accounting background. In any case, at this point you should have: 1. Performed the Simplified Chart of Accounts Setup, and 2. Printed the resulting Chart of Accounts File Listing, Balance Sheet, and Income Statement. 2 - 65 PROCEDURE Before you begin using the Chart of Accounts File Maintenance function: 1. Read the following discussions for "Account Types" and "Account Type Variables". 2. Analyze the Chart of Accounts File Listing, Balance Sheet, and Income Statement that resulted from the Simplified Setup. 3. When you have a general understanding of account types and account type variables, you may begin building or modifying your Chart of Accounts. ================================================================= 2 - 66 ================================================================= ACCOUNT TYPES ================================================================= Each account that you add to your Chart of Accounts must be assigned an account type. There are a total of 26 account types which may be broken down into five categories: 1. Posting 2. Special 3. Totaling 4. Summary 5. Format POSTING ACCOUNTS Journal entries cannot be made for any account which is not a posting account type. Balance Sheet posting account types are: Assets 00 - Cash 01 - Current Assets (except cash and inventory) 21 - Inventory 02 - Other Asset (except accumulated depreciation) 03 - Accumulated Depreciation Liabilities 04 - Current Liability 05 - Long Term Liability Equity 06 - Miscellaneous Equity 07 - Retained Earnings 2 - 67 Income Statement Posting account types are: Revenue 08 - Revenue Expenses 09 - Expenses (except depreciation and inventory) 10 - Depreciation Expense 22 - Inventory Change 00-CASH Cash (type 00) accounts represent cash and other amounts which may be immediately converted into cash, e.g. time deposits. Type "00" accounts identify cash accounts for the Statement of Funds Flow. If you will not be printing a Statement of Funds Flow, make your cash accounts asset (type 00 or type 01) accounts. 01-CURRENT ASSETS (with the exception of cash and inventory) Current asset (type 01) accounts represent amounts which are very liquid (easily converted to cash), e.g. accounts receivable, prepaid expenses, etc. 21-INVENTORY Inventory (type 21) accounts represent Balance Sheet inventory amounts if you would like your Income Statement cost of sales section to appear as: Beginning Inventory Add purchases Freight in Direct labor (etc.) Less Ending Inventory Cost of Sales 2 - 68 If you have more than one inventory account, you may: 1. Use a single cost of sales section, or 2. Use multiple cost of sales sections. If you are using more than one inventory account with a single cost of sales section, then use a primary inventory account with a sub-account for each inventory posting account, making each account a type 21 account. EXAMPLE 1030-0000 Inventory 1030-0001 Raw Material Inventory 1030-0002 Work in Process Inventory 1030-0003 Finished Goods Inventory If you are using more than one inventory account with more than one cost of sales section, then use a different primary account for each type 21 account. EXAMPLE 1030-0000 Inventory 1032-0000 Raw Material Inventory 1034-0000 Work in Process Inventory 1036-0000 Finished Goods Inventory In any case, for each primary account type 21 you use, you must also have an inventory change (type 22) account and a special ending inventory (type 23) account in your Income Statement. Each time you debit or credit an account type 21, you must make an offsetting entry for your inventory change (account type 22) account. If you are not showing your cost of sales in the "Beginning Inventory less Ending Inventory" style, then make your Balance Sheet inventory account a type 01 asset account. 2 - 69 02-OTHER ASSET Other asset (type 02) accounts represent assets other than current assets, e.g. fixed assets, property and equipment, lease hold improvements, notes receivable, etc. 03-ACCUMULATED DEPRECIATION Accumulated depreciation (type 03) accounts are asset- contra accounts. Their balances are usually credit balances, unlike the debit balances of most assets. Type 03 accounts identify accounts which accumulate depreciation so that calculations can occur on depreciation add-backs in preparation of the Statement of Changes Report. Accumulated Depreciation accounts are usually: 1. Immediately preceded by the other asset (type 02) account to which they apply, and 2. Immediately followed by a Balance Sheet totaling (type 13) account which calculates the net book value of the asset after depreciation. EXAMPLE 2010-0000 Building (type 02) 2011-0000 Accumulated (building) Depreciation (type 03) 2012-0000 Building Net (type 13) 04-CURRENT LIABILITY Current liability (type 04) accounts represent liabilities which must be met within a short period of time, e.g. trade accounts payable, payroll taxes, short term notes payable, etc. 2 - 70 05-LONG TERM LIABILITY Long term liability (type 05) accounts represent obligations which are usually not due until a future accounting year, e.g. notes payable, shareholder loans, etc. 06-MISCELLANEOUS EQUITY Miscellaneous equity (type 06) accounts represent the ownership component of the balance sheet, i.e. the owner's financial interest in the company. All equity accounts except retained earnings (type 07) and current earnings (type 25) should be type 06 accounts. In a partnership or sole proprietorship, the type 06 accounts are capital accounts and are used as owner draw accounts. In corporations, the type 06 account is used for capital stock, paid in capital in excess of par, dividends paid, etc. 07-RETAINED EARNINGS For sole proprietorships, the retained earnings (type 07) account represents the capital account. Unlike retained earnings, the capital accounts usually contain the owner's original investment (represented as common stock in corporations) as well as any accumulated earnings or losses as of the beginning of the accounting year. Partnerships are like proprietorships except that there should be a CAPITAL account for each partner. For corporations, the retained earnings account contains the business's accumulated earnings or losses as of the beginning of the accounting year. 2 - 71 08-REVENUE Revenue (type 08) accounts represent income, e.g. sales, rental income, interest income, etc. 09-EXPENSE Expense (type 09) accounts represent the company's expenses and are usually the most numerous accounts, e.g. telephone, rent, utilities, salaries, etc. 22-INVENTORY CHANGE Income Statement inventory change (type 22) accounts are required only if you are using an account type 21 as your Balance Sheet inventory account. In addition to being a posting account, account type 21 serves a special function. Since amounts posted to inventory change are offset with postings to the Balance Sheet inventory (type 21) account, each time you print an Income Statement, Levinson Lyon: 1. Adds the balance of your inventory change (type 22) account to the balance of your Balance Sheet inventory (type 21) account, and 2. Reports the sum of account types 21 and 22 as "Beginning Inventory" on the line dictated by the type 22 account number. (Account type 22 is the exception to the rule that posting account descriptions will appear on your statements. The amounts posted to account type 22 become part of the amount reported by Levinson Lyon as "Beginning Inventory".) Note that: - You must have a type 22 primary account for each Balance Sheet type 21 primary account that you are using. 2 - 72 - If you will be reporting cost of sales by departments and/or divisions, then you must have an account type 22 sub-account for each type 21 sub-account that you are using. - To determine your "Beginning Inventory", the balance of your first account type 22 will be added back to the balance of your first type 21 account. The balance of your second type 22 account will be added back to the balance of your second type 21 account, etc. If you are not using a Balance Sheet inventory type 21 account, make your inventory change account a normal expense (type 09) account. 10-DEPRECIATION EXPENSE Depreciation expense (type 10) accounts are special expense accounts that represent non-cash expenses, i.e. they are never paid. Type 10 accounts identify depreciation and amortization expenses for the Statement of Changes and/or Statement of Funds Flow Reports. If you do not intend to print a Statement of Changes, depreciation expenses may be either type 09 or type 10 accounts. SPECIAL ACCOUNTS Balances for special account types are calculated by Levinson Lyon each time you print financial statements. You cannot post to a special account type, just like you cannot post to totaling or formatting account types. Special account types include: 25 - Current Year Earnings (Net Income) 23 - Ending Inventory 2 - 73 25-NET INCOME TO DATE (Balance Sheet) Balance Sheet net income to date (type 25) accounts represent income from operations. Each time you print a Balance Sheet, Levinson Lyon calculates the income required to make your Balance Sheet balance and reports that amount for your type 25 account. (Since the calculated income from account type 25 should equal the Income Statement net income, if it does not, then your General Ledger is out of balance.) In addition, during the year-end closing function, Levinson Lyon closes the amount calculated for account type 25 into the designated retained earnings (type 07) account(s). Note that you may have as many net income (type 25) accounts as you require. (More than one type 25 account is typically used for partnership earnings distributions.) Each time you enter an account type 25, you may designate the percentage of calculated income that will be allocated to that account. You will also designate to which retained earnings (type 07) account each type 25 account will be closed during the year-end function. 23-ENDING INVENTORY The ending inventory (type 23) account is required only if you are using an account type 21 for your Balance Sheet inventory account. Each time you print an Income Statement, Levinson Lyon reverses the sign on the balance of your type 21 account and reports that amount for your type 23 account. (This calculation assumes that you have determined your ending inventory, and that you have made any necessary adjusting entries to your Balance Sheet inventory and Income Statement inventory change accounts.) Note that: - You must have a primary account type 23 for each primary account type 22 that you are using. 2 - 74 - If you will be reporting cost of goods sold by departments and/or divisions, then you must have a type 22 sub-account for each type 23 sub-account you are using. - Levinson Lyon determines the balance of your first account type 23 by reversing the sign on the balance of your first type 21 account. The balance of your second type 23 account is determined from the balance of your second type 21 account, etc. If you are not using a Balance Sheet inventory type 21 account, make your ending inventory account an expense (type 09) account. TOTALING ACCOUNTS A totaling account calculates a total for a designated range of accounts for financial statements and summary statements. Totaling account types should not be confused with summary (type 24) accounts. Totaling and summary accounts both total a designated range of accounts, but unlike summary accounts, the calculated amounts for totaling accounts will not be included if the range they occur in is totaled by a summary account or by another totaling account. In other words, each time you print a Balance Sheet or Income Statement, Levinson Lyon calculates the amounts for the totaling accounts, prints those amounts, and then discards them to avoid duplication. The totaling account types are: 13 - Balance Sheet Total 17 - Income Statement Total 2 - 75 13-BALANCE SHEET TOTAL Balance Sheet totaling (type 13) accounts are typically used to total and report: - Total Current Assets - Net Property and Equipment - Total Other Assets - Total Assets - Total Current Liabilities - Total Other Liabilities - Total Liabilities - Ending Capital - Total Equity - Total Liabilities and Equity 17-INCOME STATEMENT TOTAL Income Statement totaling (type 17) accounts are typically used to total and report: - Gross Sales - Net Sales - Cost of Sales - Gross Profit - Total Selling Expenses - Total General Expenses - Net Income Before Tax - Net Income After Tax 2 - 76 SUMMARY ACCOUNTS Summary (type 24) accounts are a special type of totaling account. Like totaling (types 13 and 17) accounts, type 24 accounts total a designated range of accounts. Unlike totaling accounts, Levinson Lyon calculates summary account totals and retains those totals until the statement you are printing is complete. Summary account totals will subsequently be included if the range they occur in is totaled by a totaling account or by another summary account. Summary accounts are used primarily for Summary Statements (See Setting Up Summary Statements), although you may also find an occasional use for them in your financial statements (See "Income From Operations" in the Chart of Accounts generated by the Simplified Setup procedure). FORMATTING ACCOUNTS Formatting account types are responsible for the appearance of financial and summary statements, including titles, underlines, page breaks, etc. Formatting account types include: 11 - Centered Title 12 - Left Margin Title 14 - Balance Sheet Single Underline 15 - Balance Sheet Double Underline 16 - Page Skip 18 - Income Statement Single Underline 19 - Income Statement Double Underline 20 - End of Statement 2 - 77 11-CENTERED TITLE Centered title (type 11) accounts are used to center and print the account's description. Typical uses for type 11 accounts include printing centered titles for: - ASSETS - LIABILITIES & EQUITY 12-LEFT MARGIN TITLE Left margin title (type 12) accounts are used to position and print the account's description four spaces from left margin. Typical uses for type 12 accounts include printing titles for: - CURRENT ASSETS - OTHER ASSETS - CURRENT LIABILITIES - OTHER LIABILITIES - EQUITY - SALES - COST OF SALES - SELLING EXPENSES - GENERAL & ADMINISTRATIVE 14-BALANCE SHEET SINGLE UNDERLINE 15-BALANCE SHEET DOUBLE UNDERLINE 18-INCOME STATEMENT SINGLE UNDERLINE 19-INCOME STATEMENT DOUBLE UNDERLINE Underline (types 14, 15, 18, and 19) accounts instruct Levinson Lyon to print an underline (single or double) in the designated column. They are typically used immediately prior to totaling accounts, but they may be used anywhere you feel you need them. Descriptions for underlining accounts are not printed on your statements but may be entered in your Chart of Accounts to enhance readability. 2 - 78 16-PAGE SKIP Page skip (type 16) accounts instruct Levinson Lyon to skip to the next page during the statement printing procedure. Without the page skipping instructions, 60 lines per page will be printed by most computer systems. Note that: - Totaling, summary, and most formatting accounts request "line skip" information when the account type is entered. When "line skip" information is requested, "99" may be entered to skip to the next page, i.e. entering a "99" for the line skip produces the same results as entering an account type 16. - Descriptions for page skip accounts are not printed on your statements but may be entered in your Chart of Accounts to enhance readability. 20-END OF STATEMENT End of statement (type 20) accounts are required for the Balance Sheet and Income Statement, i.e. your Chart of Accounts must contain two type 20 accounts. All accounts, including any summary statement accounts, which appear before the first type 20 account in your Chart of Accounts will be considered Balance Sheet accounts. Any accounts, including any summary statement accounts, which appear after the first and before the second type 20 account in your Chart of Accounts will be considered Income Statement accounts. End of statement account descriptions are not printed on your statements, but may be entered in your Chart of Accounts to enhance readability. 2 - 79 SPECIAL SUB-ACCOUNTS If you will be printing divisional and/or departmental Income Statements, you may tell Levinson Lyon which totaling, summary, and formatting accounts to include on those statements by assigning those accounts a special sub- account. XXXX - 0000....all statements XXXX - 0001....departmental statements only XXXX - 0002....combined statements only XXXX - 0003....divisional statements only SCENARIOS A company is printing combined and departmental Income Statements. The controller would like to print some totaling accounts on the departmental statements but not on the combined statement. He adds the numbers for the totaling accounts to the company's Chart of Accounts, using a "0001" sub-account with each primary totaling (type 17) account. Another company would like a summary statement printed with its combined Income Statement but not with its divisional statements. The company's controller adds the summary accounts to the company's Chart of Accounts, using a "0002" sub-account for each primary account (summary, totaling, and formatting) that defines the summary statement. ================================================================= 2 - 80 ================================================================= ACCOUNT TYPE VARIABLES ================================================================= Depending on the account type, a Chart of Accounts record may also require additional information regarding: - Debit or credit (normal condition) - Print column - Beginning and ending account numbers (totaling accounts) - Dollar sign formatting - Line skip control - Year-end posting references - Partnership allocation percentages In any case, only those variables that are required by the account type will be requested when the account type is entered during the maintenance procedure. PRINT COLUMN Balance Sheet amounts and underlines may be printed in column 1, 2, or 3. Income Statement amounts and underlines are printed in column 1. You may suppress printing by entering a "0" as the print column for Balance Sheet and/or Income Statement accounts. Some users use this option to suppress the printing of several primary accounts, showing their total in a totaling account and the suppressed accounts in a financial schedule, i.e. this is an alternative to using a sub-account structure with supporting schedules to simplify the appearance of financial statements. Levinson Lyon enters a "1" for Income Statement account type print columns, but you may change the "1" to a "0" to suppress printing. 2 - 81 DEBIT or CREDIT Each time you print financial statements, Levinson Lyon prints credit balances for debit accounts and debit balances for credit accounts parenthetically. (File listings and file maintenance forms report credit balances as negative numbers and debit balances as positive numbers regardless of the account's normal condition.) Levinson Lyon "knows" the normal condition for posting accounts and special accounts, and enters that condition when you enter the account type. You may change the Levinson Lyon entry, however, if you are entering a contra account, e.g. "accounts receivable" accounts will normally be an asset (type 01) account with a debit balance. However, an "allowance for bad debt" account would be an asset (type 01) account with a credit balance. If the account is a totaling or summary account, Levinson Lyon waits for your entry. If the account is a formatting account, a "Debit- Credit" designation will not be requested. BEGINNING and ENDING ACCOUNT NUMBERS Beginning and ending account numbers are required for: - Totaling accounts - Summary accounts Both totaling and summary account amounts are a calculated sum of the amounts in a designated range of accounts. (Amounts from summary accounts which are included in the designated range will be included in the calculation. Amounts from totaling accounts included in the designated range will not be included in the calculation.) 2 - 82 Note that that the range you designate must precede the number of the totaling or summary account, although the ending account may be the same account as the totaling or summary account. Levinson Lyon enters the number of the totaling or summary account as the ending account, but you may change that number to any number greater than the beginning number and less than the totaling or summary account number. (Using the totaling or summary account as the ending account will allow you to add accounts to the designated range at a later date and have them automatically included in the range calculation.) LINE SKIP Totaling, summary, and most types of formatting accounts require line skip instructions. You may request a line skip(s) by entering a number for the number of lines to be skipped. EXAMPLES 0 = Print the next account on the next line 1 = Skip one line before printing the next account 2 = Skip two lines before printing the next account "99" is a special line skip command that says "skip to the next page" and may be used any time line skip information is requested. Since line skip information is not required for posting accounts, if you need to skip to the next page after a posting account, you must enter a page skip (type 16) account. Levinson Lyon assumes that you will not be skipping lines and enters a "0" for the line skip, but you may change the "0" to another number. 2 - 83 DOLLAR SIGN FORMATTING Each totaling and summary account requires dollar sign formatting instructions. You may print or not print a dollar sign with the calculated amounts for totaling and summary account types. (Regardless of what you enter, a "$" will be printed for the first amount in each column of each page.) YEAR-END CLOSE Balance Sheet income (type 25) accounts require year-end closing account instructions. During the Year-End Closing procedure, each type 25 account that you have will be closed into the account specified for that account in your Chart of Accounts. (The account number you specify will most likely be a retained earnings, type 07, account.) Equity (type 06) accounts will also be closed into a another account but only if a closing account is designated, i.e. you may want to use an account type 06 for an account which does not get closed. Partnership draw (type 06) accounts are typically closed into other accounts, usually a retained earnings (type 07) account. 2 - 84 INCOME FROM OPERATIONS ALLOCATION Each net income from operations (type 25) equity account that you are using requires percentage allocation instructions. Since you may have more than one type 25 account (partnerships, for example, may have several), Levinson Lyon must be told how much of the Balance Sheet calculated income to allocate to each type 25 account. Note that the type 25 account percentage allocation is reflected in the line skip column of the Chart of Accounts File Listing. Also note that, if you are using more than one type 25 account, Levinson Lyon will allocate any net income that has not been allocated to the last type 25 account in your Chart of Accounts. ================================================================= 2 - 85 ================================================================= MAINTENANCE ================================================================= Although all of the typical file maintenance functions (add, change, delete, and inquire) may be performed for the Chart of Accounts File: 1. A posting account cannot be deleted if that account has journal transactions on file even if those transactions result in a zero balance for that account, and 2. An account type cannot be changed from a posting to any other type of account for an account that has journal transactions on file. 3. Each account's account number serves as the record ID, and once an account has been added to your Chart of Accounts, the only way to change its number is to delete the account and add it back with another number. (This may not appear to have been the case during the Simplified Setup, since during that procedure, you were permitted to change account numbers. But those accounts were added to your Chart of Accounts in groups each time you pressed to process the displayed accounts. The Chart of Accounts Maintenance function displays one account (record) at a time, and the same rule applies, i.e. you can change the number for an account any time prior to pressing to add the account to your Chart of Accounts.) Since you can only change an account's number by deleting the account, and you cannot delete an account if it has transactions, you should work with your Chart of Accounts until you feel that its structure fits your needs. Once you start posting to it, making major changes to the structure of your Chart of Accounts can be very time consuming. Routine maintenance, of course, may be performed at any time, e.g. adding a posting account, adding a department (sub-account), deleting unused accounts, changing account descriptions, etc. 2 - 86 The following instructions assume that you are adding an account to your Chart of Accounts. SELECTION o Select - File Maintenance Enter 1 - Chart of Accounts ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** CHART OF ACCOUNTS MAINTENANCE *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ ACTION: dd hange elete nquire . ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ G/L Account: .... - .... ³ ³ ³ ³ Account Description: ......................... ³ ³ ³ ³ Account Type: .. ³ ³ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÁÄÄÄÄÄÄÄÄÄÄ¿ ³ ³ ³ ³ ³ ³ ³ ³ ³ ³ ³ ³ ³ ³ ³ ÀÄÄÄÄÄÄÄÄÄÄ´ ³ ³ ³ ³ ³ ³ ³ ³ ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ F1 -Process F2 -Clear F3 -Prev F4 -Next F5 -First F6 -Last Esc -Menu ACTION o Enter "A" for ADD. G/L Account Number: The account number identifies the location of each account in your Chart of Accounts. In addition, it is the account number that determines the order of printing, i.e. accounts are printed sequentially by account number. 2 - 87 Account numbers may be from 1 to 8 digits (4 primary account digits plus 4 sub-account digits.) Note that accounts may be added to your Chart of Accounts in any order. (This was not the case during the Simplified Setup procedure, when each account number had to be higher than the last.) o Enter the number you will be using to identify the account, including the primary and any sub-account numbers. Account Description: With the exception of some formatting accounts, the account's description will be included in the: - Working Trial Balance - General Ledger Report - Balance Sheet - Income Statement - Statement of Changes - Budget File Maintenance - Account Balances File Maintenance - Chart of Accounts File Listing Some formatting account descriptions will only appear in the Chart of Accounts File Listing and during Chart of Accounts File Maintenance, including: - Underlining accounts - Page skip accounts - End of statement accounts Descriptions for these accounts should, however, be included to enhance the readability of your Chart of Accounts. 2 - 88 Note that during the Simplified Setup, the account description determined whether an account would be included in your Chart of Accounts. That is not the case here. The description is optional, although it is recommended for all accounts. o Enter the description you would like printed for the account. Account Type: A numeric value, the account type ranges from 00 to 25. Together with the account number, the account type forms the foundation of your Chart of Accounts by delineating: - Posting accounts - Special accounts - Totaling accounts - Summary accounts - Formatting accounts If you are using a hard disk, note that the HELP key will display a summary of the account types discussed in detail at the beginning of this section. o Enter the number (0-25) of the account type. 2 - 89 Line Skip: o If line skip information is requested, press to accept the "0" Levinson Lyon entry, or Enter another number. EXAMPLES 0 = Don't skip any lines 1 = Skip one line 2 = Skip two lines 99 = Skip to the next page Normally is: ebit redit o If a Credit/Debit designation is requested, press to accept the Levinson Lyon entry, or Enter the letter (D or C) corresponding to the normal condition of the account. Year-End Close to: o If year-end closing information is requested (type 06 or 25), enter the number of the account the account you are defining should be closed to during the year-end closing procedure. 2 - 90 Beginning Account: Ending Account: o If a starting and ending account number is requested: 1. Enter the number of the of the first account in the range of accounts, and 2. Press to accept the number of the account you are defining as the ending account, or Enter the number of any account greater than the beginning account and less than the account you are defining. Force $ (Y/N): o If dollar sign formatting is requested, enter a "Y" to print a dollar sign with the account's amount, or Enter an "N" to print the account's amount without a dollar sign. Note that, regardless of your entry, Levinson Lyon will include a "$" for the first amount in each column of each page. % Allocation: o If an allocation percentage is requested (type 25 accounts), enter the percentage of the Balance Sheet (calculated) income from operations to allocate to the account you are defining, e.g. for 25%, enter "25". 2 - 91 Process o When the account record is complete, press to add it to your Chart of Accounts. When the action is complete, you may: 1. Define another account, or 2. Press to return to the menu. ================================================================= TESTING YOUR CHART OF ACCOUNTS ================================================================= If you have modified your Chart of Accounts, then before proceeding: 1. Print the Chart of Accounts File Listing, and 2. Print financial statements and schedules with zero balances. ================================================================= 2 - 92 ================================================================= ACCOUNT BALANCES FILE ================================================================= The Account Balances File is a multiple record file that maintains a record for each posting account in your Chart of Accounts. Each time you add a posting account to your Chart of Accounts, Levinson Lyon adds a record for that account to your Account Balances File. (That includes all of the posting accounts generated by the Simplified Setup procedure.) Each record maintains posting account balances for three years: 1. Prior Year, 2. Current Year, and 3. Next Year. Together with the Journal Transaction File and your Chart of Accounts, the Account Balances File forms the heart of the Levinson Lyon General Ledger. You design your financial statements and schedules with your Chart of Accounts and post transactions to the Journal Transaction File. Levinson Lyon verifies the accounts you enter for your transactions against the posting accounts in your Chart of Accounts and updates the balances for those accounts in the Account Balances File after each account is verified. Levinson Lyon will "attempt" to update the Account Balances File for the entries you make each time you: 1. Complete a journal transaction entry session by posting your entries, 2. Perform one of the Special Journal functions, including: - Recurring and Reversing Journals - Journal Transaction Interface - Gross Profit Inventory Adjustment - Tax Accrual Adjustment 3. Change a journal entry via the Journal Transaction Corrections or Journal Transaction File Maintenance functions. 2 - 93 Income Statement accounts will be updated for the period you are processing. Balance Sheet accounts will be updated for the period you are processing and for each subsequent period through the end of the "next" year. SCENARIO A company is processing a 12 (monthly) period year. During the month of August, the company's accountant makes an entry to correct an omissions error for the month of June. When he posts the journal entry, Levinson Lyon updates the Income Statement accounts for the June period, and the Balance Sheet accounts for all periods, beginning with June. If the "attempted" update fails, i.e. if you are trying to post to a non-posting account, Levinson Lyon will begin an Account Balances Update function. Based on the transactions in the Journal Transaction File, the Account Balances Update function will: 1. Print an error analysis report, listing invalid account numbers, and 2. If no errors are detected, recalculate the balance for each account. If errors are detected, then you must: 1. Correct those errors, and 2. Perform the Account Balances Update function by selecting it from the Journal Processing menu until it is completed without errors. 2 - 94 As long as an Account Balances error condition exists, you cannot: 1. Enter other transactions, or 2. Print financial statements. (See "Account Balances Update" for more details on that function.) Reports based on the contents of the Account Balances File include: - Working Trial Balance - General Ledger Report - Balance Sheet - Income Statements - Statement of Changes - Statement of Funds Flow - Financial Schedules - Statement Summaries Reports may be printed for any period in the current or next year. Income Statements may also include a variance comparison to the same period in the prior year, in which case, prior year amounts must be maintained in the Account Balances File. In other words, prior year balances are maintained only for comparison purposes. During the setup procedure, you may enter prior year balances for any or all posting accounts in your Chart of Accounts. If you will not be printing a prior year comparison with your financial statements, then you may disregard the instructions for entering prior year balances. Note that: - Prior year balances need only be entered once. Each time you perform a final year-end closing, Levinson Lyon shifts the current year's balances to the prior year's periods and the next year's balances to the current year's periods. 2 - 95 - Balances for the current and next year cannot be changed via Account Balances File Maintenance. Levinson Lyon protects the integrity of your account balances by "locking" the balances for the current and next year's periods. Changes to the balances can only be made by making journal entries or corrections. In other words, for the current and next years, account balances are a function of the contents of the Journal Transactions File, and nothing else. - The ACTION options are limited to Change and Inquire. The Add and Delete options which are routinely available for maintaining other multiple record files are reserved for use by Levinson Lyon. In addition to adding a record to the Account Balances File each time you add a posting account to your Chart of Accounts, Levinson Lyon Deletes an account's Account Balances record if you delete that account from your Chart of Accounts. (An account may be deleted through Chart of Accounts File Maintenance only if there are no journal transactions on file for that account.) As an alternative to entering prior year balances through Account Balances Maintenance, you may set up prior year balances by: 1. Making journal transaction entries for your prior year's balances, 2. Printing financial statements to confirm your entries, and 3. Performing a final year-end closing to "shift" your entries to the prior year column of the Account Balances File. The following instructions assume that you are changing a prior year amount for one of the accounts in your Chart of Accounts. 2 - 96 SELECTION o Select - File Maintenance Enter 11 - Account Balances ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** ACCOUNT BALANCES MAINTENANCE *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ ACTION: hange nquire . ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ G/L Account: .... - .... ³ ÚÄÄÄÄÄÄÄÄÄÁÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ Prior Yr Amount ÃÄÄ Curr Yr Amount Next Yr Amount ³ 01: ............. ³ 01: ............. 01: ............. ³ S 02: ............. ³ 02: ............. 02: ............. ³ 03: ............. ³ 03: ............. 03: ............. ³ Y 04: ............. ³ 04: ............. 04: ............. ³ 05: ............. ³ 05: ............. 05: ............. ³ S 06: ............. ³ 06: ............. 06: ............. ³ 07: ............. ³ 07: ............. 07: ............. ³ T 08: ............. ³ 08: ............. 08: ............. ³ 09: ............. ³ 09: ............. 09: ............. ³ E 10: ............. ³ 10: ............. 10: ............. ³ 11: ............. ³ 11: ............. 11: ............. ³ M 12: ............. ³ 12: ............. 12: ............. ³ 13: ............. ³ 13: ............. 13: ............. ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ F1 -Process F2 -Clear F3 -Prev F4 -Next F5 -First F6 -Last Esc -Menu ACTION o Enter "C" for Change. G/L Account: o Using your Chart of Accounts Listing as a reference, enter the number of the account you are changing, or Use the function keys, thru to "browse" through the Chart of Accounts File until the correct account number is displayed. 2 - 97 Prior Year Amount: Levinson Lyon reports and file maintenance functions show: - Debits as positive numbers - Credits as negative numbers o For each period, enter the balance you will be using for the prior year comparison when you print financial statements. (Enter a debit balance as a positive amount, and a credit balance as a negative number. Process o When your changes are complete, press to record your changes in the Account Balances File. When the action is complete, you may: 1. Enter changes for another account, or 2. Press to return to the menu. ================================================================= 2 - 98 ================================================================= ACCOUNT BALANCES LISTING ================================================================= The Account Balances Listing is a 132 column report that lists the contents of the Account Balances File. It is used as a reference during Account Balances File Maintenance and should be printed: 1. After any prior year balances are entered during the setup procedure, and 2. After any modifications have been made to any of the prior year balances in the Account Balances File. The listing is printed in account number order and includes: - Account Number - Account Balances for the three accounting years (Prior, Current, and Next) SELECTION o Select - File Listings Enter 8 - Account Balances 2 - 99 ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** ACCOUNT BALANCES LISTING *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ Starting Account: .... - .... ³ ³ ³ ³ Ending Account: .... - .... ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Print Mode: ³ ³ ³ ³

rinter isplay ile . ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ F1 -Print Report F2 -Clear Esc -Return to Menu Print Report o When the report format is complete, press to continue with the printing procedure. ================================================================= 2 - 100 ================================================================= BUDGET FILE ================================================================= The Budget File is a multiple record file that maintains a record for each account you are budgeting. Each record maintains a budget for 12 or 13 processing periods. (The number of periods being processed for the company is maintained in the Company File.) When you print a Balance Sheet and/or an Income Statement, you may optionally include a variance comparison between the period amounts and the budgeted amounts maintained in the Budget File. Note that: - Budgets may only be entered for posting accounts - If you print financial statements with a budget comparison, all totaling and formatting accounts in your Chart of Accounts will be active for the budget, as well as for the selected period. SCENARIOS Company one is only interested in maintaining a budget for a few accounts. The company's accountant enters budgets for those accounts, and when financial statements are printed, the variance comparisons reflected in totaled amounts are ignored. (Totaled budget amounts will reflect accurate variance comparisons only if budget amounts are available for all accounts in the totaled range of accounts.) 2 - 101 Company two is only interested in making budget comparisons for several totals appearing on the company's financial statements. The company's accountant picks one of the accounts in the range of each totaled amount and enters a total budget amount as the budget for that account. When financial statements are printed, the variance comparison between period totals and budgeted totals will be valid, but the comparison between the budgeted account's period amount and budget amount will be ignored. (That budget amount was entered as a shortcut to get a budget amount for the total.) Company three needs accurate variance comparisons for each posting account and each totaled amount. The company's accountant enters a budget for each and every posting account in the company's Chart of Accounts. When the company prints financial statements with a budget comparison, all variance comparisons will be accurate. The following instructions assume that you are ADDING budgets for some or all of the posting accounts in your Chart of Accounts. SELECTION o Select - File Maintenance Enter 2 - Budget 2 - 102 ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** BUDGET MAINTENANCE *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ ACTION: dd hange elete nquire . ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ G/L Account: .... - .... ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÁÄ¿ ³ ³ Period Amount ³ ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ 01: ............ ³ ³ 02: ............ ³ ³ 03: ............ ³ ³ 04: ............ ³ ³ 05: ............ ³ ³ 06: ............ ³ ³ 07: ............ ³ ³ 08: ............ ³ ³ 09: ............ ³ ³ 10: ............ ³ ³ 11: ............ ³ ³ 12: ............ ³ + -Duplicate Last Entry ³ 13: ............ ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ F1 -Process F2 -Clear F3 -Prev F4 -Next F5 -First F6 -Last Esc -Menu Note that in addition to the commands routinely available for file maintenance, the plus (+) key may be used to duplicate the last entry you made. ACTION o Enter "A" for Add. G/L Account: o Enter the account number for the account you are budgeting. 2 - 103 Amount: o For each period you are processing, enter the amount you are budgeting for the account. (Do not enter a negative amount unless you are budgeting a negative amount, i.e. the debit or credit status of the accounts balance does not determine the sign of your entry.) Process o When you are satisfied with the account's budget, press to add the budget to the Budget File. When the action is complete you may: 1. Enter a budget for another account, or 2. Press to return to the menu. ================================================================= 2 - 104 ================================================================= BUDGET FILE LISTING ================================================================= The Budget File Listing is a 132 column report that lists the contents of the Budget File. It is used as a reference during Budget File Maintenance and should be printed: 1. After setting up the Budget File, and 2. After making any modifications to the Budget File. The listing is printed in account number order and includes: - Account Number - Budget Amounts for up to 13 periods SELECTION o Select - File Listings Enter 2 - Budget 2 - 105 ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** BUDGET FILE LISTING *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ Starting Account: .... - .... ³ ³ ³ ³ Ending Account: .... - .... ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Print Mode: ³ ³ ³ ³

rinter isplay ile . ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ F1 -Print Report F2 -Clear Esc -Return to Menu Print Report o When the report format is complete, press to continue with the printing procedure. ================================================================= 2 - 106 ================================================================= JOURNAL NAME FILE ================================================================= The Journal Name File is a multiple record file that maintains a name for each transaction entry journal you define. Each record maintains a: - Journal number - Journal name Each time you begin a journal transaction entry session, you must designate a journal for your entries. Although all entries will be recorded in the same Journal Transaction File, Levinson Lyon will list your entries by journal number in the Journal Transaction Report. (The journal number you enter does not have to be defined in the Journal Name File, but if it is not, the Account Balances Update function will generate a warning message. In addition, the Journal Transaction Report cannot print a name for a journal number which is not defined in the Journal Name File.) There are a total of 99 transaction entry journals. You may define journals 01 through 89 for your own use. Levinson Lyon uses journals 90 through 92 for special processing and reserves journals 93 through 99 for future use. (Although you may define and use journals 93 through 99, it is not recommended.) EXAMPLES 01 - Cash Receipts 02 - Cash Disbursements 89 - General Journal Reports based all, or in part, on the Journal Name File include: - Journal Name File Listing - Journal Transaction Report 2 - 107 SELECTION Select - File Maintenance Enter 6 - Journal Name ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** JOURNAL NAME MAINTENANCE *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ ACTION: dd hange elete nquire . ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Journal Number: .. ³ ³ ³ ³ Journal Name: ......................... ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ F1 -Process F2 -Clear F3 -Prev F4 -Next F5 -First F6 -Last Esc -Menu ACTION o Enter "A" for ADD. Journal Number: The journal number identifies the location of the journal in the Journal Name File. Each journal number must be unique and may be from one to two digits long. The journal number must be numeric. 2 - 108 o Enter the number you will be using to identify the journal. Enter 01 through 89. Journal Name: When printing a Journal Transaction Report, the Journal Name prints as part of the heading. o Enter the Journal Name Process - Return to Menu o When the form is complete, press to add the journal name to the Journal Name file. When the action is complete, you may: 1. Define another journal, or 2. Press to return to the menu. ================================================================= 2 - 109 ================================================================= JOURNAL NAME FILE LISTING ================================================================= The Journal Name File Listing is an 80 column report that lists the contents of the Journal Name File for all journals or a range of journals. It serves as a reference during: - Journal Name File Maintenance - Journal Transaction Entry - Journal Transaction Correction - Journal Transaction Maintenance You should print the Journal Name File Listing: 1. After setting up the Journal Name File, and 2. After making modifications to the Journal Name File. The listing is printed in Journal Number order and includes: - Journal Number - Journal name SELECTION o Select - File Listings Enter 6 - Journal name 2 - 110 ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** JOURNAL DESCRIPTION LISTING *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ Starting Journal Number: .. ³ ³ ³ ³ Ending Journal Number: .. ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Print Mode: ³ ³ ³ ³

rinter isplay ile . ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ F1 -Print Report F2 -Clear Esc -Return to Menu Print Report o When the report form is complete, press to continue with the printing procedure. ================================================================= 2 - 111 ================================================================= GROSS PROFIT INVENTORY ADJUSTMENT FILE ================================================================= The Gross Profit Inventory Adjustment File is a single record file that maintains the parameters needed to estimate your ending inventory based on the assumption that your gross profit is a constant percentage of your net sales. Note that: - The Gross Profit Inventory Adjustment function is an optional function which may be selected from the Special Journal Processing menu. If you will be making inventory change entries based on a physical inventory, you may ignore the Gross Profit Inventory Adjustment File and the Gross Profit Inventory Adjustment function. - The Gross Profit Inventory Adjustment function is based on the use of inventory account types 21, 22, and 23. If you are not using these account types for your inventory accounts, then you cannot use the Gross Profit Inventory Adjustment function. - The Gross Profit Inventory Adjustment function provides for adjusting one inventory amount. If you are using more than one inventory account, you may still use this function by making adjusting journal entries once the Gross Profit Inventory Adjustment has been made, i.e. use one account for the adjusting entry and "spread" the adjustment to other accounts with journal entries. SELECTION o Select - File Maintenance Enter 8 - G/P Inventory Adjustment 2 - 112 ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** G/P INVENTORY ADJUSTMENT MAINTENANCE *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÂÄÄÄÄÄÄÄÄÄÄÄÄÄÄÂÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ ³ F R O M ³ T O ³ ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÅÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Account Range - Net Sales: ³ .... ³ .... ³ ³ ³ ³ ³ ³ Account Range - Gross Profit: ³ .... ³ .... ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÁÄÄÄÄÄÄÄÄÄÄÄÄÄÄÁÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ G/L Account - Balance Sheet Inventory: .... ³ ³ ³ ³ G/L Account - Income Statment Beginning Inventory: .... ³ ³ ³ ³ % of Net Sales to be Computed as Gross Profit: .... ³ ³ ³ ³ Journal Number to be used for Ajustment Entries: .. ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ F1 -Write Data to Disk F2 -Clear Esc -Return to Menu Account Range - Net Sales: Account Range - Gross Profit: Based on the range of accounts you enter, Levinson Lyon calculates your net sales and gross profit from the balances in the Account Balances File. Note that the Account Balances File maintains balances for posting accounts, i.e. net sales and gross profit totaling accounts cannot be substituted for the ranges of posting accounts, even though your Chart of Accounts may include totaling accounts equal to the ranges you enter. (Balances for totaling accounts are also calculated from the balances in the Account Balances File each time they are required.) 2 - 113 Note also that sub-account amounts associated with the primary accounts within the range you specify will be included in the calculated totals. o Enter the range of account (from-to) balances to be used in the net sales and gross profit calculations. G/L Account - Balance Sheet Inventory: G/L Account - Income Statement Beginning Inventory: Each time you perform the Gross Profit Inventory Adjustment function, Levinson Lyon will calculate your change in inventory, and post it to your Balance Sheet inventory account (type 21) and Income Statement inventory change (type 22) account. o Enter the number of the primary account you are using as your Balance Sheet inventory (type 21) account, and Enter the number of the primary account you are using as your Income Statement inventory change (type 22) account. % of Net Sales to be Computed as Gross Profit: Levinson Lyon calculates your gross profit as a percentage of net sales, based on the percentage you enter, and then adjusts your Balance Sheet inventory (type 21) account and Income Statement ending inventory (type 23) account to conform to your calculated gross profit. 2 - 114 o Enter the percentage of net sales to be used as gross profit, e.g. if your gross profit is typically 40% of net sales, enter "40". Journal Number to be used for Adjustment Entries: o Enter the journal number to be used for the inventory adjustment entries. Write Data to Disk o When the form is complete, press to record your entries in the G/P Inventory Adjustment File. ================================================================= 2 - 115 ================================================================= TAX ACCRUAL ADJUSTMENT FILE ================================================================= The Tax Accrual Adjustment File is a single record file that maintains the parameters needed to estimate your federal and state income tax liability based on a percentage of your pre-tax profit. Note that: - The Tax Accrual Adjustment function is an optional function which may be selected from the Special Journal Processing menu. If you will be making journal entries for tax liabilities and expenses, you may ignore the Tax Accrual Adjustment File and the Tax Accrual Adjustment function. - Each time you perform the Tax Accrual Adjustment function, Levinson Lyon calculates the tax on a year to date basis and makes the journal entries necessary to: 1. Adjust the Balance Sheet tax accrual accounts for the calculated amount, and 2. Reflect the adjustment amount in the current period's Income Statement. SELECTION o Select - File Maintenance Enter 9 - Tax Accrual Adjustment 2 - 116 ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** TAX ACCRUAL ADJUSTMENT MAINTENANCE *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÂÄÄÄÄÄÄÄÄÄÄÄÄÄÄÂÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ ³ F R O M ³ T O ³ ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÅÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Account Range - Pre-tax Profit: ³ .... ³ .... ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÁÄÄÄÄÄÄÄÄÄÄÄÄÄÄÁÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ G/L Account - Federal Income Tax Expense (Debit): .... - .... ³ ³ ³ ³ G/L Account - Federal Income Tax Accrual (Credit): .... - .... ³ ³ ³ ³ G/L Account - State Income Tax Expense (Debit): .... - .... ³ ³ ³ ³ G/L Account - State Income Tax Accrual (Credit): .... - .... ³ ³ ³ ³ Effective Tax Rate (%) - Federal: .... ³ ³ ³ ³ Effective Tax Rate (%) - State: .... ³ ³ ³ ³ Journal Number to be used for Adjustment Entries: .. ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ F1 -Write Data to Disk F2 -Clear Esc -Return to Menu Account Range - Pre-Tax Profit Levinson Lyon calculates your pre-tax profit from the balances in the Account Balances File, based on the range of accounts you enter. Note that the Account Balances File maintains balances for posting accounts, i.e. a pre-tax profit totaling account cannot be substituted for the ranges of posting accounts, even though your Chart of Accounts may include a pre-tax totaling account equal to the ranges you enter. (Balances for totaling accounts are also calculated from the balances in the Account Balances File each time they are required.) 2 - 117 Note also that sub-account amounts associated with the primary accounts within the range you specify will be included in the calculated totals. o Enter the range of account (from-to) balances to be used in the pre-tax profit calculation. G/L Account - Federal Income Tax Expense (Debit): G/L Account - Federal Income Tax Accrual (Credit): Each time you perform the Tax Accrual Adjustment function, Levinson Lyon calculates your year-to-date income and multiplies it by your effective federal income tax rate. Your Balance Sheet federal tax accrual account is then adjusted by the amount necessary to reflect your year-to-date federal tax liability. The adjusting amount is also posted to your Income Statement federal tax expense account. o Enter the number of your Balance Sheet federal tax accrual account, and Enter the number of your Income Statement federal tax expense account. 2 - 118 G/L Account - State Income Tax Expense (Debit): G/L Account - State Income Tax Accrual (Credit): Each time you perform the Tax Accrual Adjustment function, Levinson Lyon calculates your year-to-date income and multiplies it by your effective state income tax rate. Your Balance Sheet state tax accrual account is then adjusted by the amount necessary to reflect your year-to-date state tax liability. The adjusting amount is also posted to your Income Statement state tax expense account. o Enter the number of your Balance Sheet state tax accrual account, and Enter the number of your Income Statement state tax expense account. Effective Tax Rate (%) - Federal: Effective Tax Rate (%) - State: Each time you perform the Tax Accrual Adjustment function, Levinson Lyon will multiply your year-to-date pre-tax income by the percentage rate you enter. o Enter a federal income tax rate, e.g. for 50%, enter "50", and Enter a state income tax rate. 2 - 119 Journal Number to be used for Adjustment Entries: o Enter the journal number to be used for the tax adjustment entries. Write Data to Disk o When the form is complete, press to record your entries in the Tax Accrual Adjustment File. ================================================================= 2 - 120 ================================================================= SYSTEM CONTROL FILE ================================================================= The System Control File is a single record file that maintains instructions for: - Rounding Amounts - Journal Entry Account Verification - Journal Entry Decimal Points In addition, the System Control File maintains the period- end dates for your current year's processing periods. SELECTION o Select - File Maintenance Enter 12 - System Control ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** SYSTEM CONTROL FILE MAINTENANCE *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ Plug Rounding Errors to ÚÄÄÄÄÁÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ Balance Sheet Account: .... - .... ³ PERIOD END DATES ³ ³ ³ ³ ³ 100% Comparison G/L Account: .... - .... ³ 01: .. / .. / .. ³ ³ ³ 02: .. / .. / .. ³ ³ Verify G/L Accounts during ³ 03: .. / .. / .. ³ ³ Journal Entry (Y/N): . ³ 04: .. / .. / .. ³ ³ ³ 05: .. / .. / .. ³ ³ Decimal Point Assumed during ³ 06: .. / .. / .. ³ ³ Journal Entry (Y/N): . ³ 07: .. / .. / .. ³ ³ ³ 08: .. / .. / .. ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ 09: .. / .. / .. ³ ³ 10: .. / .. / .. ³ ³ 11: .. / .. / .. ³ ³ 12: .. / .. / .. ³ ³ 13: .. / .. / .. ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ F1 -Write Data to Disk F2 -Clear Esc -Return to Menu 2 - 121 Plug Rounding Errors to Balance Sheet Account: Each time you print financial statements, you will have the option to round amounts to the nearest dollar or print both dollars and cents. If you choose to round to the nearest dollar, then any residual amount resulting from the rounding procedure will be posted to the account designated as the rounding account in the System Control File. Note that the account you use as the rounding account must be a posting account in your Chart of Accounts. o Enter the number of the account to be used as your rounding account. If you will not be rounding, press and continue. 2 - 122 100% Comparison G/L Account Each time you print an "Actual Only" Income Statement, you will have the option to print a percentage comparison of each Income Statement account to the account designated in the System Control File as the comparison account. Note that the account you enter as the comparison account may be a posting or totaling account. EXAMPLES Accounts typically used as comparison accounts include: Gross Sales Net Sales Total Expenses Etc. o Enter the number of the account to be used as your comparison account. 2 - 123 Verify G/L Accounts during Journal Entry (Y/N)? Levinson Lyon protects the integrity of your account balances by verifying that each Journal Transaction Entry you make is for a posting account in your Chart of Accounts. Accounts may be verified: 1. During the Journal Transaction Entry procedure, or 2. During the Journal Transaction Posting procedure. Verifying during entry is typically the choice of user's whose Chart of Accounts is fairly stable, i.e. they rarely change their Chart of Accounts. Other users may feel the need to make entries for accounts which are not in their Chart of Accounts, and then add those accounts to their Chart of Accounts after the entry session is posted. Those users will want to post their entries and then perform the Account Balances Update function after adding the necessary account(s) to their Chart of Accounts. Note that you may begin by updating account balances with the Account Balance Update function, and when your Chart of Accounts stabilizes, change the instruction in the System Control File to verify accounts during Journal Transaction Entry. (See the discussion at the beginning of Section 3 for more details on the consequences of verify or not verifying during journal entry.) 2 - 124 o Enter a "Y" to verify accounts during Transaction Journal Entry or an "N" to verify accounts during posting. Decimal Point Assumed during Journal Entry? (Y/N): During Journal Transaction Entry you may enter dollar and cent amounts with or without the decimal point. If you assume the decimal point, Levinson Lyon will enter a decimal for you before the last two digits of your entry. Assuming the decimal point is typically the choice of users who enter both dollar and cent amounts during journal entry. If you do not assume the decimal point, you must enter the decimal when you enter both dollars and cents. If you do not enter the decimal, Levinson Lyon will add the decimal and two zeros to your entries. Entering the decimal when it is needed is typically the choice of users who, for the most part, enter whole dollar amounts. Note that assuming the decimal is an option for Journal Transaction Entry only. The decimal point cannot be assumed for any other Levinson Lyon General Ledger function. 2 - 125 o Enter a "Y" to have Levinson Lyon place a decimal point before the last two digits of your journal entries, or Enter an "N" to have Levinson Lyon add a decimal and two zeros to your journal entries if you do not enter a decimal. Period End Dates Levinson Lyon uses the period-end dates in the System Control File for report purposes, e.g. printing the period-end date at the top of the General Ledger Report. If you are processing 12 periods, Levinson Lyon will calculate and enter your period-end dates based on the fiscal year-end date in the Company Name File. o If you are not processing 12 (monthly) periods, enter the period-end date for each period. 2 - 126 Write Data to Disk o When the form is complete, press to record your entries in the System Control File, and When the action is complete, press to return to the menu. ================================================================= 2 - 127 ================================================================= JOURNAL PROCESSING ================================================================= Journal entry processing procedures include: - Maintaining the general files - Entering journal transactions - Printing Journal Transaction Reports - Making journal transaction corrections - Updating the Account Balances File Most of your journal entries will be made via the Journal Transaction Entry function, discussed in this section. There are, however, a number of optional special journal functions, discussed in Section 4, which you may find useful, including: - Recurring and Reversing Journals - Journal Transaction Interfacing - Gross Profit Inventory Adjustment - Tax Accrual Adjustment Whether or not you use these special journal functions may have some influence on the journal entries you make via the Journal Transaction Entry function. We would like to recommend, therefore, that you review those functions before you begin making routine journal entries. For now though, continue with this section until you have a general understanding of the journal entry and corrections procedures. The focus of this section is on how you make journal transactions entries and what happens when you post those entries. As discussed elsewhere, along with your Chart of Accounts and the Account Balances File, the Journal Transaction File forms the heart of the Levinson Lyon General Ledger. The journal entries you make are recorded in the Journal Transaction File as you post those entries, and the contents of the Journal Transaction File determines the balances of your accounts in the Account Balances File. How those balances get updated is central to our discussion. 3 - 1 There are two ways to update the balances in the Account Balances File: 1. If, during Transaction Journal Entry, you enter transactions for accounts that are posting accounts in your Chart of Accounts, then after you post your entries, the balances in the Account Balances File will be updated with the entries you have made. We refer to this direct and immediate kind of updating as "dynamic" updating. A dynamic update has two distinct advantages. One, it's quick, and two, it allows you to begin another journal entry session without returning to the menu. 2. The second kind of Account Balances File update is performed by the Account Balances Update function. The Account Balances Update function recalculates the balances in the Account Balances File from the transactions in the Transaction File, regardless of when those transactions were posted. The update function really has two parts. The first part verifies account numbers, dates, etc., and prints an Error Analysis Report. If no errors were detected, then the Account Balances File are updated. After you have posted your entries to the Journal Transaction File, Levinson Lyon will always attempt to perform a dynamic update. The dynamic update updates an account only if that account is a posting account in your Chart of Accounts. If an entry for an invalid account is encountered, Levinson Lyon will print the Error Analysis Report from the Account Balances Update function. You must then: 1. Return to the menu. 2. Correct your entries or add accounts to your Chart of Accounts to support those entries, and 3. Perform the Account Balances Update function by selecting it from the menu until no errors are detected and the update is performed. 3 - 2 One way to ensure that the Account Balances File is always updated dynamically is to verify the accounts you enter against the posting accounts in your Chart of Accounts, as you enter them. If you verify accounts during journal entry, however, then you can only make entries for posting accounts in your Chart of Accounts. (The System Control File maintains the option to verify accounts during journal entry.) If you do not verify accounts during journal entry, Levinson Lyon will still compare your entries with your Chart of Accounts and sound a "beep" that alerts you but allows you to continue if you enter an invalid account. So if you have to make an entry for an account you intend to add to your Chart of Accounts, you may do so. But you will also have to perform the Account Balances Update function. SCENARIOS - An established company has a Chart of Accounts that seldom changes. The controller wants to ensure that all postings are made to current accounts. He selects the account verification option in the System Control File, and when an exception has to be made, he may: 1. Post that session without that entry, add the necessary account to the company's Chart of Accounts, and begin another entry session, or 2. Post the entry to a suspense account and make an adjusting entry after the new account has been added to the company's Chart of Accounts. - The principles in an accounting firm would like the flexibility to add accounts to their Chart of Accounts after entries for those accounts have been posted. They elect not to verify accounts during journal entry. Each time they post an entry for an account that is not in their Chart of Accounts, they 1. Return to the menu. 2. Add the account to their Chart of Accounts, and 3. Perform the Account Balances Update. 3 - 3 Note that: - Regardless of whether the dynamic update is completed, posting your entries will record them in the Journal Transaction File. - As long as an Account Balances error condition exits, you cannot: 1. Enter additional transactions, or 2. Print financial statements. - You may change the System Control File verification instruction at any time. ================================================================= 3 - 4 ================================================================= MAINTAINING THE GENERAL FILES ================================================================= During transaction entry and reporting, Levinson Lyon retrieves information stored in the general files. The general files must therefore be maintained with current information. The general files which must be maintained include the: - Statement and Titles Comments File - Chart of Accounts File - Division Name File (optional) - Department Name File (optional) - Schedule File (optional) - Account Balances File (optional) - Budget File (optional) - Gross Profit Inventory Adjustment File (optional) - Tax Accrual Adjustment File (optional) - Journal Name File (optional) - System Control File If you are printing a financial statement which includes a budget comparison, for example, the budget figures you are using for the comparison must be included in the Budget File. Each time you modify one of the general multiple record files, you should reprint the relative file listing. ================================================================= 3 - 5 ================================================================= ENTERING JOURNAL TRANSACTIONS ================================================================= Journal Transactions are entered for one period and one journal at a time. Each time you enter journal transactions, you will define your processing period and journal by designating: 1. Which year you are processing 2. Which period you are processing, and 3. Which journal to use for posting your entries. You may then process and post multiple entries for that year, period, and journal. Each time you process an entry, it is recorded in a temporary file, where it will remain until you post your entries or cancel the entry session. Entries may be reviewed, changed, and deleted until they are posted. Each time you post your entries: 1. The entries you have made will be transferred from the temporary file to the Journal Transaction File, where they will remain until they are deleted, or until they are purged during the final year-end closing procedure, and 2. Levinson Lyon will begin a dynamic update of account balances. Reports based on the contents of the Journal Transaction File include: - Journal Transaction File Listing - Journal Transaction Report - Error Analysis Report (Account Balances Update) In addition, the balances in the Account Balances File are dependent solely on the transactions in the Transaction File. 3 - 6 DEFINING THE PROCESSING PERIOD AND JOURNAL Before you can enter journal transactions, you must define your processing period and journal. SELECTION o Select - Journal Processing Enter 1 - Journal Transaction Entry ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** JOURNAL TRANSACTION ENTRY *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ Processing Year: ³ ³ ³ ³ urrent ext . ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ ³ ³ Processing Period (1-13): .. ³ ³ ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ ³ ³ Journal Number: .. ³ ³ ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ F1 -Process F2 -Clear Esc -Return to Menu 3 - 7 Processing Year: urrent ext You may make journal entries for any period in the current or next year. o Enter the letter (C or N) corresponding to the year you are processing. Processing Period (1-13): You may make journal entries for any of the processing periods in the current or next year, 1-12 or 1-13, depending on the processing period instruction (12 or 13) in the Company File record for the company you are processing. o Enter the number that represents the period you are be processing within the year you are processing. Journal Number All of the entries you make during one journal entry session must be for one journal. o Enter the number of the journal you would like to use for the entries you will be making. 3 - 8 Process o When the form is complete, press to display the journal transaction entry form. * * * J O U R N A L T R A N S A C T I O N E N T R Y * * * ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º PROCESSING JOURNAL - FOR PERIOD º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ Date Description Ref G/L Acct Debit Credit ÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ ÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ ../../.. .................... ..... .... - .... ............ ............ ../../.. .................... ..... .... - .... ............ ............ ../../.. .................... ..... .... - .... ............ ............ ../../.. .................... ..... .... - .... ............ ............ ../../.. .................... ..... .... - .... ............ ............ ../../.. .................... ..... .... - .... ............ ............ ../../.. .................... ..... .... - .... ............ ............ ../../.. .................... ..... .... - .... ............ ............ ../../.. .................... ..... .... - .... ............ ............ ../../.. .................... ..... .... - .... ............ ............ ÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ Verify= Decimal= Session Totals Difference Processing Entry: Status: F1 -Proc F2 -Clear F3 -Up F4 -Down F5 -Search F6 -More Esc -Options In addition to displaying lines for journal entries, the journal entry form displays processing help, including: - PROCESSING JOURNAL - FOR PERIOD - Verify - Decimal - Session Totals - Processing Entry - Status 3 - 9 PROCESSING JOURNAL: Indicates the journal you have designated for the entries you will be making. FOR PERIOD: Indicates the period you have designated as the processing period. Verify: Indicates whether (Y or N) the account numbers you enter will be verified against the posting accounts in your Chart of Accounts as you enter them. (See System Control File) Decimal: Indicates whether (Y or N) you are assuming or entering decimal points. Y = Assume decimal N = Enter decimal (See System Control File) Session Totals: Indicates the debit and credit balances for the entries you have made. Difference: Indicates any difference between the debit and credit balances for the entries you have made. Note that the difference is reported in the Debit column if a debit entry for that amount would balance your entries, and in the credit column if a credit entry for that amount would balance your entries. 3 - 10 Processing Entry: Indicates the number of the entry you are making. Note that when you use the paging feature, 10 blank entry lines are displayed and the previous entry is displayed in the high-lighted area immediately above the first blank line. Status: Indicates when the system is "ready" for more entries. Note that the status changes to "working" and the cursor is not displayed when the system is processing. 3 - 11 ENTERING TRANSACTIONS Entering journal transactions is very much like entering records in a multiple record file, except that each line of the journal entry form represents one record and each entry you process is recorded in a temporary file until the journal entry session is posted. The journal entry form will display 10 entries at one time. If you process 10 entries, then another 10 blank entry lines will be displayed. You may then use the cursor control commands to return to previous entries for reviewing, changing, or deleting. Each entry must be processed before another entry can be made, but you may continue to edit previous entries until the session is posted. Once the session is posted, entries may be edited through the Journal Entry Correction function, or corrections may be made by entering adjustments in the form of additional journal entries. Note that you may to the entry options at any time, but a session cannot be posted unless it is in balance. (Debit and Credit totals are displayed as "Session Totals"). Some of the commands for controlling the cursor and the display during journal transaction entry may appear to differ somewhat from the commands generally used for file maintenance and other data entry procedures. But, if you think of each line as one record, then there are more similarities than differences. The key functions as it does elsewhere. It completes an entry and moves the cursor to the next item. Note that pressing the key at the end of a record (line) moves the cursor to the beginning of the same record (line), i.e. you cannot "jump" from one record to the next with the key. 3 - 12 The Arrow Keys The arrow keys function as they do elsewhere. The left and right arrow keys move the cursor one character at a time within each entry item, i.e. you cannot "jump" from one item to the next with the left and right arrow keys. The up and down arrow keys move the cursor to the previous and next item within a record, i.e. you cannot "jump" from one record to the next with the up and down arrow keys. -Proc Records each entry you make. Just as you would press to add a record to a file, you will press to record each journal entry you make and move the cursor to the beginning of the next record (line). -Clear Clears the journal entry line. Just as you would press to clear a multiple record file form, you may press to clear a journal entry record and return the cursor to the beginning of that record. If a record has been processed, note that pressing to clear that record's entry line does not delete that record, just as clearing a multiple record file entry form does not delete a record which has been added to the file. 3 - 13 -Up -Down Moves the cursor to the previous and next record (line), respectively. If you are using the and keys to "browse" through your entries, note that, just as in file maintenance, you cannot move beyond the first and last records. -Search Displays the numbers and descriptions of the posting accounts in your Chart of Accounts, 32 accounts at a time. Pressing from within the Search function displays the next 32 accounts, etc. Pressing returns you to the journal entry form. Note that accounts are displayed by description, in order by: 1. Spaces 2. Numbers 3. Upper case characters 4. Lower case characters 3 - 14 SCENARIO An operator is entering a transaction for a seldom used account and can't remember the number of that account. He displays the search function by pressing and enters the first letter of the account's description. Levinson Lyon displays the posting accounts in his Chart of Accounts, beginning with the first account that starts with the letter he entered. The operator notes the number of the account he wants to enter and returns to the transaction entry form to make his entry. 3 - 15 -More Displays additional control functions, including: <+> - Duplicates last entry - Deletes line at cursor - Inserts a line at cursor - Move cursor to the beginning of the record - Moves the cursor to the end of the record - Moves cursor to the beginning of the first record - Moves cursor to the beginning of the last record - Displays previous 10 entries - Displays next 10 entries Note that the editing functions which are generally available elsewhere may also be used, including: BACKSPACE TAB SHIFT-TAB 3 - 16 Date: You may enter any date the transaction requires. Note that the date you enter for the transaction is for reference purposes only, i.e. when you post transactions, they will be posted for the period you are processing, regardless of the dates you entered for those transactions. o Press to enter your processing date as the entry date, or Enter another date. Description: The description is for reference purposes only. o Enter any description required by the transaction. Ref: The reference is generally used for invoice numbers, check numbers, or any other reference which may identify a supporting document. The Journal Transaction Report is printed in reference order within journals. o Enter any reference characters. 3 - 17 G/L Acct: The G/L Account number identifies the account in your Chart of Accounts which will be updated when account balances are updated. o Enter an account number for the transaction. If you are verifying accounts and your entry results in a flashing arrow, compare your entry with your posting accounts (use your Chart of Accounts File Listing, or the "search" function). Numbers for accounts which do not represent posting accounts in your Chart of Accounts will not be accepted. If you are not verifying accounts and your entry results in a "beep", then you have entered an account that is not a posting account in your Chart of Accounts. If that was your intention, then you may continue. If that was not your intention, then correct your entry before continuing. Debit o Enter any debit amount. 3 - 18 Credit o Enter any credit amount. Process o When each entry is complete: 1. Press to process the entry, and 2. Enter another transaction, or Press to display the entry session options. 3 - 19 ENTRY OPTIONS The entry options provide for: 1 - Displaying a session recap 2 - Resuming transaction entry 3 - Cancelling the session 4 - Posting the session ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** JOURNAL TRANSACTION ENTRY *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ ³ ³ 1 - Display Session Recap ³ ³ 2 - Resume Journal Transaction Entry ³ ³ 3 - Cancel This Session and Return to Menu ³ ³ 4 - Post This Session ³ ³ ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º Please Enter Your Selection . º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ 3 - 20 1 - Display Session Recap Displays: - Number of transactions entered for the session - G/L Account Hash Total - Total Debits - Total Credits - Any difference between debits and credits - A "Session in Balance", or a "Session out of Balance" message o Enter a "1" to display the session recap. 2 - Resume Entries Resumes the entry cycle by displaying 10 blank entry lines. (Your last entry will be displayed in the highlighted area immediately above the first transaction entry line.) o If you have more transactions or corrections to enter, enter "2" and continue. 3 - Cancel This Session and Return to Menu Cancelling the session: 1. Deletes the temporary file where each transaction was recorded as it was processed, and 2. Returns Levinson Lyon to the menu. 3 - 21 o If you are cancelling the session, when the cancellation warning message is displayed, press to cancel all entries made during the session and return to the menu, or Press to return to the options without cancelling the session. 4 - Post This Session Posting your entries finalizes the journal entry session by: 1. Transferring your entries from the temporary file, where they were recorded as they were processed, to the Journal Transaction File, assigning a transaction number as a record ID for each entry. 2. Starting a dynamic update of the Account Balances File. 3. Deleting the temporary processing file, and 4. If the update is completed, giving you the option to begin another entry session or return to the menu. o When you are ready to post the session, enter a "4". ================================================================= 3 - 22 ================================================================= JOURNAL TRANSACTION REPORT ================================================================= The Journal Transaction Report is an 80 column report that lists the contents of the Journal Transaction File for a specified period. It may be printed for all journals or a range of journals and serves as a reference during: - Journal Transaction Correction - Journal Transaction File Maintenance The reports are printed in journal number sequence, and by transaction reference within journals. Each report includes: - Transaction Number (assigned by Levinson Lyon) - Date - Description - Reference - G/L Account Number - Amount (debit or credit) - Journal Total (debits and credits) - G/L Account Hash Total - Balance Status (in or out) In addition, each report includes a grand total (debits and credits for all journals listed) and a grand total balance status (in or out). 3 - 23 ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** JOURNAL TRANSACTION REPORT *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ Year (C/N): . ³ ³ ³ ³ Period (1-13) .. ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Starting Journal: .. ³ ³ ³ ³ Ending Journal: .. ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Print Subtotals for Each ³ ³ Reference? (Y/N): . ³ ³ ³ ³ Print Mode: ³ ³ ³ ³

rinter isplay ile . ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ F1 -Print Report F2 -Clear Esc -Return to Menu Year (C/N): You may print a Journal Transaction Report for any period in the current or next year. o Enter the letter (C or N) corresponding to your selection. 3 - 24 Period (1-13): You may print a Journal Transaction Report for any period in the year you have selected. o Enter the number (1-13) of the period within the year you have selected. Print Report o When the report format is complete, press to continue with the printing procedure. ================================================================= 3 - 25 ================================================================= JOURNAL TRANSACTION CORRECTION ================================================================= The Journal Transaction Correction function may be used to change a Journal Transaction File record's: - Account number - Date - Description - Reference The Journal Transaction Correction function cannot be used to change a Transaction File record's: - Processing Year - Processing Period - Journal Number - Amount Note that the Journal Transaction Correction function may be used with a "limited" access password. The Journal Transaction File Maintenance function, which provides full file maintenance functions for the Journal Transaction File, may only be used with a "full" access password, but using journal transaction entries to change amounts, processing periods, and journals is recommended over the Journal Transaction File Maintenance Function. 3 - 26 SCENARIOS - An operator who is not verifying accounts during journal entry posts a journal entry session that includes an erroneous entry for a formatting account. Levinson Lyon begins a dynamic update and prints the Error Analysis Report when the formatting account entry is encountered. The Error Analysis Report clearly shows the problem, so the operator: 1. Returns to the menu. 2. Uses the Journal Transaction Correction function to change the account number to the correct posting account number, and 3. Performs the Account Balances Update function. - Another operator posts a journal entry session that includes an entry with the wrong date. The dynamic update is completed and the error is not detected until a few days later. The operator corrects the date using the Journal Transactions Corrections function. The only thing that's affected is the date, which is included on file listings and reports. The correction begins and ends with the correction function. SELECTION o Select - Journal Processing Enter 3 - Journal Transaction Correction 3 - 27 ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** JOURNAL CORRECTION *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ ACTION: hange nquire . ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Transaction Number: ..... ³ ³ ³ ³ Posting Year (C/N): . ³ ³ S Posting Period (1-13): .. ³ ³ Y ³ ³ S G/L Account: .... - .... ³ ³ T Journal Number: .. ³ ³ E Reference: ..... ³ ³ M Date: .. / .. / .. ³ ³ Description: .................... ³ ³ Amount: ............. ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ F1 -Process F2 -Clear F3 -Prev F4 -Next F5 -First F6 -Last Esc -Menu ACTION: The Add and Delete functions which are generally available as file maintenance functions cannot be used for Journal Transaction Correction, i.e. Levinson Lyon protects the balances in your journals by forcing you to enter transactions and adjustments (deletions) through Journal Transaction Entry. 3 - 28 o Enter the letter (C or I) corresponding to your selection. Transaction Number: The transaction number is assigned by Levinson Lyon when journal entries are posted. It identifies the location of the transaction in the Journal Transaction File and cannot be changed. o Using the Journal Transaction File Listing or the Journal Transaction Report as a reference, enter the number of the Transaction. Posting Year (C/N): Posting Period (1-13): Together, the posting year and period identify the period (1-13) within the year (current or next) where the transaction was posted. They cannot be changed via the Journal Transaction Correction function. 3 - 29 G/L Account: G/L account identifies the account balance that will be updated each time you process a change. You may change the G/L account number to the number of any posting account in your Chart of Accounts. Note that the account number you enter will be verified against your Chart of Accounts, even though you may not be verifying accounts during Journal Transaction Entry. In other words, it's possible to have an invalid account number in the Journal Transaction File as a result of posting transactions, but you cannot enter an invalid account number during Journal Transaction Correction. Changing the account number will have the effect of subtracting the amount from the balance of the old account and adding it to the balance of the new account. o Enter the number of any posting account in your Chart of Accounts. Journal Number: The journal number identifies the journal which was used for entering the transaction. It may be changed via Journal Transaction File Maintenance, but the recommended procedure is to enter adjustments through Journal Transaction Entry. It cannot be changed via Journal Transaction Corrections. 3 - 30 Reference: o Change the reference as required. Date: Since the date is only for reference purposes (the date of the posting is determined by the year and period), you may enter or change the date as you require. o Change the date as required. Description o Change the description as required. Amount: The amount is displayed as: positive amount = debit negative amount = credit The amount may be changed via Journal Transaction File Maintenance, but the recommended procedure is to enter adjustments through Journal Transaction Entry. The amount cannot be changed via Journal Transaction Corrections. 3 - 31 Process o When the transaction correction form is complete, press . Levinson Lyon will: 1. Change the transactions record in the Transaction File, and 2. Update the Account Balances File with the amount of the transaction. When the action is complete, you may: 1. Enter another correction, or 2. Press to return to the menu. ================================================================= 3 - 32 ================================================================= ACCOUNT BALANCES UPDATE ================================================================= Together with the Journal Transactions File and your Chart of Accounts, the Account Balances File forms the heart of the Levinson Lyon General Ledger. As discussed throughout this section, Levinson Lyon begins a dynamic update of the Account Balances File each time you: 1. Post journal transaction entries, or 2. Perform one of the Special Journal Processing functions, including: - Recurring and Reversing Journals - Journal Transaction Interface - Gross Profit Inventory Adjustment - Tax Accrual Adjustment If an invalid account is encountered, Levinson Lyon begins the Account Balances Update function, which is performed in two steps: 1. Starting with the first transaction on file for the last period in which you entered transactions, Levinson Lyon: A. Verifies each account number against your Chart of Accounts, B. Verifies processing periods and dates C. Verifies each journal number against the Journal Name File, and D. Totals the Debits and Credits on file for each period with transactions on file. 3 - 33 If errors are detected, one or more of the following messages may appear in an Error Analysis Report: - PROC-YEAR MUST BE EITHER 'C' OR 'N' - PROC-PERIOD MUST BE 01-13 - G/L ACCT NOT FOUND IN CHART OF ACCTS - G/L ACCT IS CONTROL/NON-POSTING TYPE - JOURNAL NUMBER MUST BE 01-99 - DATE IS INCORRECT In addition the Error Analysis Report will list, as a warning any entry using a journal which is not defined in the Journal Name File. (A warning will not stop the update function from being completed.) The error analysis also reports the balance status of each period. (In Balance or Out of Balance) An error condition or an "Out of Balance" condition is reported, then you must make corrections through Journal Transaction Corrections and/or Journal File Maintenance and select the Account Balances Update from the menu until it is completed. 2. When the Error Analysis Report is complete, the Account Balances File will be updated only if: A. No errors are detected, and B. All periods are in balance. Each Income Statement account will be retotaled for the last period processed. Each Balance Sheet account will be retotaled from the last period processed to the last period in the "next" year. 3 - 34 Note that each time you select "Account Balances Update", Levinson Lyon verifies the account numbers and other variables for all of the transactions which will be included in the update. Which transactions will be included depends on the last period used for journal entries. If, for example, you are currently in period 11 of the current year, and you make a journal entry for period 9 of the current year, Balance Sheet account balances will be updated starting with period 9 in the current year. In addition, balance sheet account balances will be carried forward into the remaining periods for the current and next years. (Note that you may perform an Account Balances Update from the first period of the current year, regardless of your last processing period, by selecting "Reconstruct Account Balances" from the Utilities Menu.) An exception to the above discussion is the Journal Transaction File Maintenance function. Each time you use that function, Levinson Lyon begins an Account Balances Update without "attempting" to update the Account Balances File dynamically. (See Journal Transaction File Maintenance in Section 7 for a complete discussion of that function.) SELECTION o Select - Journal Processing Enter 4 - Account Balances Update 3 - 35 Updating When the updating procedure begins, account numbers and transaction numbers are displayed as they are processed. Each account is: 1. Read, 2. Cleared, 3. Updated, and 4. Written. o When the warning and print style forms are displayed, enter your selections to continue with the update procedure. Note that once the update procedure has begun, it should not be interrupted. ================================================================= 3 - 36 ================================================================= SPECIAL JOURNAL PROCESSING ================================================================= Special Processing functions include: - Recurring and Reversing Journals - Journal Transaction Interface - Gross Profit Inventory Adjustment - Tax Accrual Adjustment Each function is optional, depending on your needs. Each function also, in one form or another, takes the place of making journal entries via the Journal Transaction Entry procedure, i.e. by selecting one of the Special Processing functions, Levinson Lyon will create journal entries, just as if you had entered them via the Journal Transaction Entry procedure, but those entries will be derived from: 1. Prior entries, e.g. recurring entries, or 2. Calculations e.g. estimating ending inventory based on gross profit as a percentage of net sales. Note that each time you perform a special journal function, Levinson Lyon will: 1. Add the resulting journal entries to the Journal Transaction File, and 2. Begin a dynamic update for those entries. If an invalid account is encountered then you must make the necessary corrections and perform the Account Balances Update function by selecting it from the menu. (This is the same procedure you would follow if an invalid account was encountered during the journal entry posting and account balances updating procedure.) ================================================================= 4 - 1 ================================================================= RECURRING AND REVERSING JOURNALS ================================================================= Levinson Lyon reserves: - Journal 92 for recurring journal entries - Journals 90 and 91 for reversing journal entries Each time you post a transaction entry to journal 92, Levinson Lyon updates the Journal Transaction File and Account Balances Files, but journal 92 entries can also be posted in subsequent periods without entering them again. Each time you perform the Recurring and Reversing Journal Entries functions, Levinson Lyon enters any journal 92 entries from the previous period into the current processing period, i.e. journal 92 entries are pulled forward from the previous period. If you skip a processing period without performing the Recurring and Reversing Journal Entries function, your journal 92 entries will not be found. Examples of journal 92 entries include: - Rent and Leases - Mortgage Payments - Insurance Payments - Etc. Each time you post a transaction entry to journal 90, Levinson Lyon updates the Journal Transaction File and Account Balances File, but all journal 90 entries from the previous period are also reversed and posted as a Journal 91 entry in the current period each time you perform the Recurring and Reversing Journal Entries function, i.e. journal 90 entries are pulled forward from the previous period and the journal number is changed from 90 to 91. All journal 91 entries are a result of making journal 90 entries in the previous period and performing the Recurring and Reversing Journal Entries function in the current period. 4 - 2 Examples of Journal 90 entries include: - Accrued Commissions - Accrued Payroll - Accrued Sales Tax - Etc. Generally, Journal 90 may be used for any accrual, e.g. an expense which will be paid in the next period but was partially incurred in the current processing period. Note that Journal 91 is maintained by Levinson Lyon. Under normal operating conditions, you would not make entries in Journal 91. SELECTION o Select - Special Journal Processing Enter 1 - Recurring & Reversing Journals ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** RECURRING AND REVERSING JOURNALS *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ Processing Year: . ³ ³ ³ ³ Processing Period: .. ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ F1 -Process F2 -Clear Esc -Return to Menu 4 - 3 Processing Year: Processing Period: You may post recurring and reversing journals for any period in the current or next processing year. o Enter the letter (C or N) corresponding to the year you are processing, and Enter the number (1-13) corresponding to the period within the year you are processing. Process o When you have entered the processing year and period, press . Levinson Lyon will: 1. Add the recurring and reversing journal entries from the previous period to the Journal Transaction File, assigning transaction numbers and current processing period designations to each transaction, and 2. Begin a dynamic account balances update. ================================================================= 4 - 4 ================================================================= JOURNAL TRANSACTION INTERFACE ================================================================= The Journal Transaction Interface function reads and posts the General Ledger transfer files from: - Accounts Receivable, Billing, and Inventory Control - Accounts Payable - Payroll - Fixed Assets - Job Costing Each time you perform the Journal Transaction Interface function, you may: 1. Post data from any or all of the applications, and 2. Designate the journal to be used for each application. Note that if you use a separate journal for each application, the General Ledger Journal Transaction Report, which is printed by journal, can provide a list of transactions specific to each application. Note also that it is the monthly closing function in each application that reserves the respective transfer files for interfacing with the General Ledger. Each time you perform the interface function, the files which are interfaced are marked as "interfaced". If you attempt to perform the interface function for an application twice in one period, an overridable warning will be displayed. SELECTION o Select - Special Journal Processing Enter 2 - Journal Transaction Interface 4 - 5 ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** JOURNAL TRANSACTION INTERFACE *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ Processing Year: . ³ ³ ³ ³ Processing Period: .. ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÂÄÄÄÄÄÂÄÄÄÄÄÄÂÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÂÄÄÄÄÄÂÄÄÄÄÄÄ¿ ³ ³ ³ Jrnl ³ ³ ³ Jrnl ³ ³ From Levinson Lyon ³ Y/N ³ No. ³ From OCC ³ Y/N ³ No. ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÅÄÄÄÄÄÅÄÄÄÄÄÄÅÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÅÄÄÄÄÄÅÄÄÄÄÄij ³ A/R and Inventory: ³ . ³ .. ³ A/R and Inventory (long)³ . ³ .. ³ ³ Accounts Payable: ³ . ³ .. ³ Accounts Payable: ³ . ³ .. ³ ³ Payroll: ³ . ³ .. ³ Payroll: ³ . ³ .. ³ ³ Fixed Assets: ³ . ³ .. ³ Fixed Assets: ³ . ³ .. ³ ³ Job Costing: ³ . ³ .. ³ Job Costing: ³ . ³ .. ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÁÄÄÄÄÄÁÄÄÄÄÄÄÁÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÁÄÄÄÄÄÁÄÄÄÄÄÄÙ F1 -Process F2 -Clear Esc -Return to Menu Processing Year: urrent ext Processing Period (1-13): You may post recurring and reversing journals for any period in the current or next processing year. o Enter the letter (C or N) corresponding to the year you are processing, and Enter the number (1-13) corresponding to the period within the year you are processing. 4 - 6 Interface From (Y/N): Journal Number You may: 1. Post the interface transactions for any or all of the applications listed, and 2. Designate the journal to be used for each application. o Enter a "Y" for each application you are interfacing, and Enter the journal number you are using to designate postings for each application you are interfacing. Process o When the interface form is complete, press to post the interface transactions for the applications you have selected. Levinson Lyon will: 1. Add the entries from the application transfer files to the Journal Transaction File, assigning transaction numbers and current processing period designations to each transaction, and 2. Begin a dynamic update of account balances. ================================================================= 4 - 7 ================================================================= GROSS PROFIT INVENTORY ADJUSTMENT ================================================================= The Gross Profit Inventory Adjustment function is an optional function that estimates and enters an ending inventory adjustment based on the assumption that your gross profit is a percentage of your net sales. Note that: - The parameters used for the Gross Profit Inventory Adjustment function are maintained in the G/P Inventory Adjustment File. (See that file for an explanation of the parameters and how the calculation and adjustment is made.) - The Gross Profit Inventory Adjustment function is based on the use of inventory account types 21, 22, and 23. If you are not using these account types for your inventory accounts, then you cannot use the Gross Profit Inventory Adjustment function. - The Gross Profit Inventory Adjustment function provides for adjusting one inventory amount. If you are using more than one inventory account, you may still use this function by making adjusting journal entries once the Gross Profit Inventory Adjustment has been made, i.e. use one account as the adjustment posting account and "spread" the amount to other accounts after the function has posted the adjustment. 4 - 8 - The Gross Profit Inventory Adjustment function operates independently of all other functions, i.e. it will execute on command at any time. It should be performed once each processing period and preferably after all other period transactions have been entered. (The adjustment depends on the amounts currently in the ranges of accounts for net sales and gross profit. Changing those amounts will have an impact on the adjustment. If it is necessary to post to an account in the net sales or gross profit range after the Gross Profit Inventory Adjustment has been made, then an additional adjustment to inventory should be made via Journal Transaction Entry.) - The Gross Profit Inventory Adjustment function is a "period dependent" function. The adjustment it makes is based on the selected period's net sales and gross profit. If you skip a period, performing the function in the next period will not make adjustments for any increase or decrease in inventory in the prior period. CAUTION: If you use the Gross Profit Inventory Adjustment function do not perform the function and then enter an inventory adjustment via journal transaction entry for the entire period, or vice versa. SELECTION o Select - Special Journal Processing Enter 3 - G/P Inventory Adjustment 4 - 9 ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** G/P INVENTORY ADJUSTMENT *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ Processing Year: . ³ ³ ³ ³ Processing Period: .. ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ F1 -Process F2 -Clear Esc -Return to Menu Processing Year: urrent ext Processing Period (1-13): The Gross Profit Inventory Adjustment function is independent of all other functions. It may be performed at any time, but only for one processing period. It is typically performed after all other transactions affecting net sales and gross profit for a period have been entered. 4 - 10 o Enter the letter (C or N) corresponding to the year you are processing, and Enter the number (1-13) corresponding to the period you are processing. Process o When you have entered the processing year and period, press . Levinson Lyon will: 1. Calculate the inventory adjustment, 2. Add the adjusting journal entries to the Journal Transaction File, assigning transaction numbers and processing period designations to each entry, and 3. Begin a dynamic update of account balances. ================================================================= 4 - 11 ================================================================= TAX ACCRUAL ADJUSTMENT ================================================================= The Tax Accrual Adjustment function is an optional function that estimates your federal and state income tax liability based on a percentage of your year-to-date pre-tax profit. Each time you perform the Tax Accrual Adjustment function, Levinson Lyon calculates the tax on year-to-date income and makes the journal entries necessary to: 1. Adjust the Balance Sheet federal and state tax accrual accounts for the calculated amounts, and 2. Reflect the adjustment amounts in the current period's Income Statement. Note that: - The parameters used for the Tax Accrual Adjustment function are maintained in the Tax Accrual Adjustment File. (See that file for an explanation of the parameters and how the calculation and adjustment is made.) - The Tax Accrual Adjustment function operates independently of all other functions, i.e. it will execute on command at any time. It should be performed once each processing period and preferably after all other period transactions have been entered, but it may be performed more than once in one processing period if necessary. (The function will always create journal entries which "adjust" the tax expense accounts, even if those adjustments are for zero amounts.) The adjustment depends on the amounts currently in the ranges of accounts for pre-tax profit. Changing those amounts will have an impact on the adjustment. 4 - 12 - The Tax Accrual Adjustment function performs a year- to-date calculation, i.e. the adjustment will be made on the year-to-date pre-tax income total and not on a processing period's pre-tax total. The amounts reported as the processing period's tax expenses will be the amounts required to adjust the Balance Sheet federal and state tax accrual accounts. SELECTION o Select - Special Journal Processing Enter 4 - Tax Accrual Adjustment ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** TAX ACCRUAL ADJUSTMENT *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ Processing Year: . ³ ³ ³ ³ Processing Period: .. ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ F1 -Process F2 -Clear Esc -Return to Menu 4 - 13 Processing Year: urrent ext Processing Period (1-13): The Tax Accrual Adjustment function is independent of all other functions. It may be performed at any time. It is typically performed after all other transactions affecting pre-tax profit for a period have been entered. o Enter the letter (C or N) corresponding to the year you are processing, and Enter the number (1-13) corresponding to the period you are processing. Process o When you have entered the processing year and period, press . Levinson Lyon will: 1. Calculate the tax adjustment, 2. Add the adjusting journal entries to the Journal Transaction File, assigning transaction numbers and processing period designations to each entry, and 3. Begin a dynamic update of account balances. ================================================================= 4 - 14 ================================================================= FINANCIAL REPORTING ================================================================= Levinson Lyon will prepare financial reports in the form of: - Working Trial Balance - General Ledger Report - Balance Sheet - Income Statement (standard and columnar) - Statement of Changes - Statement of Funds Flow Although financial reports are typically printed at the end of each processing period, Levinson Lyon financial reports may be printed at any time, providing that an Account Balances Update error condition does not exist. Amounts for all reports are derived from the balances in the Account Balances File. Those balances reflect the transactions in the Journal Transaction File, regardless of when those transactions were posted, i.e. there are no prerequisites for printing financial statements other than the requirement that the Account Balances File is in an updated condition. Note that: - If you are using other Levinson Lyon applications, e.g. Accounts Receivable, transactions from those applications will not be reflected in the financial reports unless you have performed the Journal Transaction Interface function for those applications for the period you are reporting. - Additional reports in the form of financial schedules may be printed with the Balance Sheet and/or Income Statement by defining those schedules in the Schedule File (See Getting Started.......Setting Up Financial Schedules). ================================================================= 5 - 1 ================================================================= WORKING TRIAL BALANCE ================================================================= The Working Trial Balance is a 132 column report that lists the balances in your posting accounts in a work sheet format, providing debit and credit columns for: - Account Balances - Adjustments - Adjusted Balances Working Trial Balances may be printed with or without: - Account Balances - Zero balance accounts - Extra work area lines for each account The report also includes space for adding additional accounts. SELECTION o Select - Financial Reporting Enter 1 - Working Trial Balance 5 - 2 ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** WORKING TRIAL BALANCE *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ Year (C/N): . ³ ³ ³ ³ Period (1-13) .. ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Format: ³ ³ ³ ³ ormal xpanded . ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Skeleton Form Only? (Y/N): . ³ ³ ³ ³ Print Zero Balances (Y/N): . ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Print Mode: ³ ³ ³ ³

rinter isplay ile . ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ F1 -Print Report F2 -Clear Esc -Return to Menu Year (C/N) Period (1-13) You may print a Working Trial Balance for any period (1-13) within the current or next year. o Enter the letter (C or N) corresponding to the year you are selecting, and Enter the number (1-13) corresponding to the period within the year you are selecting. 5 - 3 Format: ormal The normal format prints one line per account. The expanded format prints three lines per account, providing additional work space. o Enter the letter (N or E) corresponding to your selection. Skeleton Form Only (Y/N)? The skeleton form prints the Trial Balance as you have otherwise defined it, but without dollar amounts in the account balances column. o Enter a "Y" to print the Trial Balance without dollar amounts, or Enter an "N" to print a trial balance with dollar amounts Print Zero Balances (Y/N)? The Working Trial Balance may be printed with or without zero balance accounts. If you include zero balance accounts, the Working Trial Balance will include all of the posting accounts in your Chart of Accounts, regardless of the period you have selected. 5 - 4 If you omit zero balance accounts, the Working Trial Balance will include only those posting accounts in your Chart of Accounts which have a balance for the period you have selected. o Enter a "Y" to include, or an "N" to exclude zero balance accounts. Print Report o When the report format is complete, press to continue with the printing procedure. ================================================================= 5 - 5 ================================================================= GENERAL LEDGER REPORT ================================================================= The General Ledger Report is an 80 column report that lists the entries that have been made for all accounts or a range of accounts. It may be printed in detailed or summary form. The report is printed in account number order and includes: - Account Number - Description - Opening Balance - Account Total (period transactions) - Ending Balance In addition, for each transaction, the detailed report includes: - Transaction Number - Journal Number - Date - Description - Reference - Amount (debit or credit) SELECTION o Select - Financial Reporting Enter 2 - General Ledger Report 5 - 6 ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** GENERAL LEDGER REPORT *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÂÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ Processing Year: ³ Print Zero Balances ³ ³ urrent ³ With No Activity? (Y/N): . ³ ³ ext . ³ ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ Start Each Account on ³ ³ From Period: .. ³ New Page? (Y/N): . ³ ³ ³ ³ ³ To Period: .. ³ Print Detail Transactions? (Y/N): . ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÅÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ From G/L Account: .... - .... ³ Print Mode: ³ ³ ³ ³ ³ To G/L Account: .... - .... ³

rinter isplay ile . ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÁÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ F1 -Print Statement F2 -Clear Esc -Return to Menu Processing Year: urrent ext You may print a General Ledger Report for any period or range of periods in the current or next processing year. o Enter the letter (C or N) corresponding to the year you are selecting, and Enter the appropriate ranges of periods and account numbers you would like included in the report. 5 - 7 Print Zero Balances? (Y/N): The General Ledger Report may be printed with or without zero balance accounts. If you include zero balance accounts, the report will include all of the posting accounts in your Chart of Accounts, within the range of accounts you have selected. If you omit zero balance accounts, the report will include only those posting accounts which: 1. Are within the range of accounts you have selected, and 2. Have a balance. o Enter a "Y" to include, or an "N" to exclude zero balance accounts. Start Each Account on New Page? (Y/N): If you like you may begin a new page for each account. This option is generally not practical unless you are including transaction detail. o Enter a "Y" to begin a new page with each account, or Enter an "N" to print the report, letting the page breaks fall naturally. 5 - 8 Print Detail Transactions? (Y/N): You may print the General Ledger Report with or without transaction detail. In addition to account totals and balances, the detailed form of the report includes each entry's: - Transaction Number - Journal Number - Date - Description - Reference - Amount (debit or credit) o Enter a "Y" to include, or an "N" to exclude, transaction detail. Print Report o When the report format is complete, press to continue with the printing procedure. ================================================================= 5 - 9 ================================================================= BALANCE SHEET ================================================================= Balance Sheets are formatted by the Balance Sheet accounts in your Chart of Accounts, using posting account balances from the Account Balances File. You may print a Balance Sheet for any period in the current or next processing years, with options to include a budget or prior year comparison. In addition, each time you print a Balance Sheet, you may: - Include or exclude zero balance accounts - Print dollar and cent amounts or print amounts rounded to the nearest dollar - Include or exclude any Balance Sheet schedules defined in the Schedule File SELECTION o Select - Financial Reporting Enter 3 - Balance Sheet 5 - 10 ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** BALANCE SHEET *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÂÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ Processing Year: ³ Print Zero Balances? (Y/N): . ³ ³ urrent ³ ³ ³ ext . ³ Print Rounded Amounts? (Y/N): . ³ ³ ³ ³ ³ Period (1-13) .. ³ Print Schedules? (Y/N): . ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÅÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Format: ³ ³ ³ ctual Only ³ Print Mode: ³ ³ udget Vs. Actual ³ ³ ³

rior Year Vs. Actual . ³

rinter isplay ile . ³ ³ ³ ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÁÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Period Ending: .................................................. ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ F1 -Print Statement F2 -Clear Esc -Return to Menu Processing Year: urrent ext You may print a Balance Sheet for any period in the current or next processing years. o Enter the letter (C or N) corresponding to the year you are selecting. 5 - 11 Period (1-13): You may print a Balance Sheet for any period within the year you have selected. o Enter the number (1-13) corresponding to the period you are selecting within the year you have selected. Format: ctual Only udget Vs. Actual

rior Year Vs. Actual Each Balance Sheet may be printed in one of three forms: 1. Actual Only 2. Budget vs. Actual 3. Prior Year vs Actual The Actual Only version is the normal 80 column Balance Sheet. The Budget vs. Actual version is a 132 column Balance Sheet that includes: - Selected period amounts - Budget amounts for the selected period - Dollar variance comparison of the selected period and your budget for that period - Percentage variance comparison of the selected period and your budget for that period Note that the amounts used for the budget comparison are maintained in the Budget File. 5 - 12 The Prior Year vs. Actual version is a 132 column Balance Sheet that includes: - Selected period amounts - Prior year amounts for the selected period - Dollar variance comparison of the selected period and the prior year amount for that period - Percentage variance comparison of the selected period and the prior year amount for that period Note that the amounts used for the prior year comparison are maintained in the prior year column of the Account Balances File. o Enter the letter (A, B, or P) corresponding to the format you are selecting. Print Zero Balances? (Y/N): You may print a Balance Sheet with or without zero balance posting accounts. Note that in any case, all formatting, totaling, and summary accounts will be included. o Enter a "Y" to include, or an "N" to exclude zero balance posting accounts. 5 - 13 Print Rounded Amounts? (Y/N): You may print a Balance Sheet with exact dollar and cent amounts, or round amounts to the nearest dollar. (Amounts are rounded up from 50 cents and down from 49 cents.) o Enter a "Y" to round amounts to the nearest dollar, or Enter an "N" to print exact dollar and cent amounts. Print Schedules? (Y/N): You may print a Balance Sheet with or without supporting schedules. If you choose to include supporting schedules, then all schedules defined in the Schedule File as Balance Sheet Schedules will be printed in schedule ID sequence immediately after the Balance Sheet is printed. Note that all of the parameters you have entered for the Balance Sheet will also apply to the schedules, e.g. if you are printing rounded amounts, the schedules will also print with rounded amounts. o Enter a "Y" to include, or an "N" to exclude supporting schedules with the Balance Sheet. 5 - 14 Period Ending: The period-ending line is a comment line which will be included at the top of the Balance Sheet. o Enter any comment you would like included at the top of the Balance Sheet, e.g."Period Ending Nov. 1985". Print Report o When the Balance Sheet format is complete, press to continue with the printing procedure. ================================================================= 5 - 15 ================================================================= INCOME STATEMENT ================================================================= Income Statements are formatted by the Income Statement accounts in your Chart of Accounts, using the posting account balances from the Account Balances File. You may print an Income Statement for any period or a range of periods in the current or next processing years, with options to include a budget, prior year, or an account percentage comparison. There are three different levels of Income Statement Reporting: 1. Combined 2. Divisional 3. Departmental In addition, each time you print an Income Statement, you may: - Include or exclude zero balance accounts - Print dollar and cent amounts or print amounts rounded to the nearest dollar - Include or exclude any Income Statement schedules defined in the Schedule File 5 - 16 SELECTION o Select - Financial Reporting Enter 4 - Income Statement ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** INCOME STATEMENT *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÂÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ Processing Year: ³ Print Zero Balances? (Y/N): . ³ ³ urrent ext . ³ Print Rounded Amounts? (Y/N): . ³ ³ Period (01-13) ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Starting .. ³ Print For: ³ ³ Ending .. ³ ombined ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ epartments ³ ³ Format: ³ Diisions . ³ ³ ctual Only ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ udget Vs. Actual ³ ³ ³

rior Year Vs. Actual . ³ ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ ³ Include ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ ³ Print Mode: ³ ³ ³ ³ ³ ³

rinter isplay ile . ³ ³ Schedules (Y/N): . ³ ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÁÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Period Ending: .................................................. ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ F1 -Print Statement F2 -Clear Esc -Return to Menu Processing Year: urrent ext You may print an Income Statement for any period in the current or next processing year. o Enter the letter (C or N) corresponding to the year you are selecting. 5 - 17 Period (01-13): Starting Ending You may print an Income Statement for any period or a range of periods within the year you have selected. o Enter the starting number and ending number (1-13) corresponding to the range of periods you are selecting, or Press to select all periods. Format: ctual Only udget Vs. Actual

rior Year Vs. Actual Each Income Statement may be printed in one of three forms: 1. Actual Only 2. Budget vs. Actual 3. Prior Year vs Actual The Actual Only version is an 80 column Income Statement. The Budget vs. Actual version is a 132 column Income Statement that includes: - Selected period amounts - Budget amounts for the selected period - Dollar variance comparison of the selected period and your budget for that period - Percentage variance comparison of the selected period and your budget for that period Note that the amounts used for the budget comparison are maintained in the Budget File. 5 - 18 The Prior Year vs. Actual version is a 132 column Income Statement that includes: - Selected period amounts - Prior year amounts for the selected period - Dollar variance comparison of the selected period and the prior year amount for that period - Percentage variance comparison of the selected period and the prior year amount for that period Note that the amounts used for the prior year comparison are maintained in the prior year column of the Account Balances File. o Enter the letter (A, B, or P) corresponding to the format you are selecting. Include Schedules (Y/N): The schedules option is an option regardless of the type of Income Statement you are printing. It will include any Income Statement schedules defined in the Schedule File. 5 - 19 If you choose to include supporting schedules, then all schedules defined in the Schedule File as Income Statement Schedules will be printed in schedule ID sequence immediately after the Income Statement is printed. Note that all of the parameters you have entered for the Income Statement will also apply to the schedules, e.g. if you are printing rounded amounts, the schedules will also print with rounded amounts. o For each option that is displayed, enter a "Y" to include or an "N" to exclude the option. Print Zero Balances? (Y/N): You may print a Income Statement with or without zero balance posting accounts. Note that in any case, all formatting, totaling, and summary accounts will be included. o Enter a "Y" to include, or an "N" to exclude zero balance posting accounts. 5 - 20 Print Rounded Amounts? (Y/N): You may print a Income Statement with exact dollar and cent amounts, or round amounts to the nearest dollar. (Amounts are rounded up from 50 cents and down from 49 cents.) o Enter a "Y" to round amounts to the nearest dollar, or Enter an "N" to print exact dollar and cent amounts. Print For: ombined epartments Diisions You may print an Income Statement for: 1. Combined (Company), 2. Departments, or 3. Divisions Combined Income Statements calculate and print the amounts posted to each primary account. Although you may only be posting to accounts with sub-account numbers, the amounts for all sub- accounts belonging to one primary account will be included when the Income Statement is printed. Departmental Income Statements print the amounts posted to all accounts with a sub-account number. 5 - 21 Divisional Income Statements calculate and print the amounts posted to all departments beginning with the same first two sub-account digits for each primary account. Note that Departmental and Divisional Income Statements may be printed only for those departments and divisions defined in the Department and Division Name Files, respectively. If you are printing Departmental or Divisional Income Statements, you may also designate the range of departments or divisions to be included. o Enter the letter (C, D, or V) corresponding to your selection. If you enter a D or V, then also enter the beginning and ending department or division numbers. 5 - 22 Period Ending: The period-ending line is a comment line which will be included at the top of the Income Statement. o Enter any comment you would like included at the top of the Income Statement, e.g."Period Ending Nov. 1985". Print Mode o When the Income Statement format is complete, press to continue with the printing procedure. ================================================================= 5 - 23 ================================================================= INCOME STATEMENT - COLUMNAR ================================================================= In addition to the standard format for printing your Income Statement, if you have a 132 column dot matrix printer, you may also print the statement in columnar format. The columnar format includes all of your accounting periods (12 or 13) side-by- side including a line total. You may print the Columnar Income Statement for a range of periods in the current, next, or prior processing years or for a range of budget periods. Like the standard format, the columnar format includes different levels of Income Statement Reporting: 1. Combined 2. Divisional 3. Departmental In addition, each time you print an Income Statement, you may: - Include or exclude zero balance accounts - Include or exclude account numbers - Include or exclude any Income Statement Schedules defined in the Schedule File 5 - 24 SELECTION o Select - Financial Reporting Enter 5 - Income Statement - Columnar ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** INCOME STATEMENT - COLUMNAR *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÂÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ Use Data From: ³ Print Zero Balances? (Y/N): . ³ ³ urrent Year . ³ ³ ³ ext Year ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³

rior Year ³ Print For: ³ ³ udget ³ ombined ³ ³ ³ epartments ³ ³ ³ Diisions . ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÅÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ ³ ³ ³ Through Period (01 - 13): .. ³ ³ ³ ³ ³ ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Print Schedules? (Y/N): . ³ Print Mode: ³ ³ ³ ³ ³ ³

rinter isplay ile . ³ ³ Print Account Numbers (Y/N): . ³ ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÁÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Period Ending: .................................................. ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ F1 -Print Statement F2 -Clear Esc -Return to Menu Use Data From: urrent Year ext Year

rior Year udget You may use the data from a range of periods in the current year, next year, prior year, or budget periods. o Enter the letter (C, N, P, or B) corresponding to the year you are selecting. 5 - 25 Through Period (01-13): You may print an Income Statement for range of periods beginning with period one in the year you have selected. o Enter the ending number (1-13) corresponding to the range of periods you are selecting. Print Schedules? (Y/N): The schedules option is an option regardless of the type of Income Statement you are printing. It will include any Income Statement Schedules defined in the Schedule File. If you choose to include supporting schedules, then all schedules defined in the Schedule File as Income Statement Schedules will be printed in schedule ID sequence immediately after the Income Statement is printed. Note that all of the parameters you have entered for the Income Statement will also apply to the schedules, e.g. if you are including account numbers, the schedules will also include account numbers. o Enter a "Y" to include or an "N" to exclude schedules. 5 - 26 Print Account Numbers (Y/N): o Enter a "Y" to include or an "N" to exclude account numbers on the Income Statement. Print Zero Balances? (Y/N): You may print an Income Statement with or without zero balance posting accounts. Note that, in any case, all formatting, totaling, and summary accounts will be included. o Enter a "Y" to include, or an "N" to exclude zero balance posting accounts. Print For: ombined epartments Diisions You may print an Income Statement for: 1. Combined (Company), 2. Departments, or 3. Divisions Combined Income Statements calculate and print the amounts posted to each primary account. Although you may only be posting to accounts with sub-account numbers, the amounts for all sub- accounts belonging to one primary account will be included when the Income Statement is printed. Departmental Income Statements print the amounts posted to all accounts with a sub-account number. 5 - 27 Divisional Income Statements calculate and print the amounts posted to all departments beginning with the same first two sub-account digits for each primary account. Note that Departmental and Divisional Income Statements may be printed only for those departments and divisions defined in the Department and Division Name Files, respectively. If you are printing Departmental or Divisional Income Statements, you may also designate the range of departments or divisions to be included. o Enter the letter (C, D, or V) corresponding to your selection. If you enter a D or V, then also enter the beginning and ending department or division numbers. Period Ending: The period-ending line is a comment line which will be included at the top of the Income Statement. o Enter any comment you would like included at the top of the Income Stateament, e.g."Period Ending Nov. 1985". 5 - 28 Print Mode o When the Income Statement format is complete, press to continue with the printing procedure. ================================================================= 5 - 29 ================================================================= STATEMENT OF CHANGES ================================================================= The Statement of Changes provides an analysis of the sources and uses of working capital. It is a preformatted 80 column based on the balances in your Balances Sheet accounts and your Balance Sheet account types. Sources of working capital include: - Operations - Disposition of non-current assets - Increases in equity - Increases in non-current liabilities Uses of working capital include: - Acquisition of non-current assets - Decreases in equity - Decreases in non-current liabilities Each time you print a Statement of Changes, you will have the option of also printing an Analysis of Changes in Working Capital, which provides a breakdown of the current asset and liability accounts affected by the changes in working capital. The Analysis of Changes in Working Capital also compares each account's year-to-date balance with the balance at the beginning of the year and calculates the net change. Note that the total net change should equal the change in working capital reported by the Statement of Changes. SELECTION Select - Financial Reporting Enter 6 - Statement of Changes 5 - 30 ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** STATEMENT OF CHANGES *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÂÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ Processing Year: ³ ³ ³ urrent ³ Print Analysis of ³ ³ ext . ³ Working Capital? (Y/N): . ³ ³ ³ ³ ³ Period (1-13) .. ³ ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÅÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ ³ ³ ³ Print Zero Balances? (Y/N): . ³ Print Mode: ³ ³ ³ ³ ³ Print Rounded Amounts? (Y/N): . ³

rinter isplay ile . ³ ³ ³ ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÁÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Period Ending: .................................................. ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ F1 -Print Statement F2 -Clear Esc -Return to Menu Processing Year: urrent ext Period (1-13) Like the Balance Sheet and Income Statement, a Statement of Changes may be printed for any processing period in the current or next year. o Enter the letter (C or N) corresponding to your selection, and Enter the number (1-13) corresponding to the period you are selecting within the year you are selecting. 5 - 31 Print Zero Balances? (Y/N): You may print a Statement of Changes with or without zero balance accounts. o Enter a "Y" to include, or an "N" to exclude zero balance posting accounts. Print Rounded Amounts? (Y?N): You may print a Statement of Changes with exact dollar and cent amounts, or round amounts to the nearest dollar. (Amounts are rounded up from 50 cents and down from 49 cents.) o Enter a "Y" to round amounts to the nearest dollar, or Enter an "N" to print exact dollar and cent amounts. Print Analysis of Working Capital? (Y/N): o Enter a "Y" to include or an "N" to exclude an Analysis of Working Capital. 5 - 32 Period Ending: The period-ending line is a comment line which will be included at the top of the Statement of Changes. o Enter any comment you would like included at the top of the Statement of Changes, e.g."Period Ending Nov. 1985". Print Statement o When the report format is complete, press to continue with the printing procedure. 5 - 33 ================================================================= STATEMENT OF FUNDS FLOW ================================================================= The Statement of Funds Flow is similar to the Statement of Changes. It provides an analysis of the sources and uses of cash in an 80 column preformatted report based on the balances in your Balance Sheet accounts and your Balance Sheet account types. Sources of cash include: - Operations - Decreases in current assets - Increases in current liabilities - Disposition of non-current assets - Increases in equity - Increases in non-current liabilities Uses of cash include: - Increases in current assets - Decreases in current liabilities - Acquisition of non-current assets - Decreases in equity - Decreases in non-current liabilities Each time you print a Statement of Funds Flow, you will have the option of also printing an Analysis of Cash, which provides a breakdown of cash accounts. The Analysis of Cash Report also compares each cash account's year-to-date balance with the balance at the beginning of the year and calculates the net change. Note that the total net change should equal the change in cash reported by the Statement of Funds Flow. SELECTION o Select - Financial Reporting Enter 7 - Statement of Funds Flow 5 - 34 ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** STATEMENT OF FUNDS FLOW *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÂÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ Processing Year: ³ ³ ³ urrent ³ Print Analysis of ³ ³ ext . ³ Cash? (Y/N): . ³ ³ ³ ³ ³ Period (1-13) .. ³ ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÅÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ ³ ³ ³ Print Zero Balances? (Y/N): . ³ Print Mode: ³ ³ ³ ³ ³ Print Rounded Amounts? (Y/N): . ³

rinter isplay ile . ³ ³ ³ ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÁÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Period Ending: .................................................. ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ F1 -Print Statement F2 -Clear Esc -Return to Menu Processing Year: urrent ext Period (1-13) Like the Balance Sheet and Income Statement, a Statement of Funds Flow be printed for any processing period in the current or next year. o Enter the letter (C or N) corresponding to your selection, and Enter the number (1-13) corresponding to the period you are selecting within the year you are selecting. 5 - 35 Print Zero Balances? (Y/N): You may print a Statement of Funds Flow with or without zero balance accounts. o Enter a "Y" to include, or an "N" to exclude zero balance posting accounts. Print Rounded Amounts? (Y/N): You may print a Statement of Funds Flow with exact dollar and cent amounts, or round amounts to the nearest dollar. (Amounts are rounded up from 50 cents and down from 49 cents.) o Enter a "Y" to round amounts to the nearest dollar, or Enter an "N" to print exact dollar and cent amounts. Print Analysis of Cash? (Y/N): o Enter a "Y" to include or an "N" to exclude an Analysis of Cash. 5 - 36 Period Ending: The period-ending line is a comment line which will be included at the top of the Statement of Funds Flow. o Enter any comment you would like included at the top of the Statement of Funds Flow, e.g."Period Ending Nov. 1985". Print Statement o When the report format is complete, press to continue with the printing procedure. ================================================================= 5 - 37 ================================================================= YEAR-END PROCESSING ================================================================= The Year-End Processing function may be performed on: 1. An interim basis, or 2. A final basis. Both an interim and final closing will: 1. Calculate your year-to-date net income and make a journal transaction entry to close that amount to your retained earnings account(s). Note that the entry is: A. Made for period "00" in the "Next" year B. Assigned the next available transaction number C. Assigned to journal "00", and D. Given a "CLOSE" reference and a "YEAR-END CLOSING" description. Closing year-to-date net income to the retained earnings account(s) has the effect of transferring the account type 25 amount to the account type 7. Note that each account type 25 generally has an account type 07 associated with it, but it is possible to close more than one type 25 account to one type 7 account. 2. Closes any draw account (account type 06) amounts to their designated closing accounts and zeroes out the draw account amounts. Entries similar to those made for year-to-date income are added to the Journal Transaction File. 3. Begin an Account Balances Update for the next year. 6 - 1 In addition, a final closing will: 1. Shift current year period balances to the corresponding periods for the prior year, replacing the previous prior year balances, 2. Delete the current year's transactions from the Journal Transaction File, 3. Shift any balances from the next year periods to the corresponding periods in the current year, and 4. Renumber the remaining transactions (previously next year's transactions) in the Journal Transaction File, changing the processing year's designation from an "N" to a "C". You may perform an interim closing any time before you perform a final closing, i.e. you may perform multiple interim closings. A final closing, however, permanently alters the contents of the Journal Transaction and Account Balances Files and should only be performed after you have: 1. Made your final current year journal entries, 2. Printed a General Ledger Report for all current year periods, 3. Printed financial reports for your last current year period, plus any reports you may require for other current year periods, and 4. Printed any other reports or listings you feel you may require for references purposes, e.g. a Transaction File Listing. 5. The last thing you should do before performing a final update is BACKUP YOUR DATA. Although backing up your data at any time protects your data, making a backup prior to a final closing and archiving that backup also provides a way, should it become necessary, to reopen and reclose a year. 6 - 2 SELECTION o Select - Year-End Processing Enter 1 - Year-End Closing ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** YEAR-END CLOSING *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ Type of Closing: ³ ³ ³ ³ nterim inal . ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ F1 -Process F2 -Clear Esc -Return to Menu 6 - 3 Type of Closing: nterim inal An interim closing may be performed at any time. A final closing permanently alters the contents of the Journal Transaction and Account Balances File, and should only be performed after all entries have been made and all reports have been printed for the current year. o Enter the letter (I or F) corresponding to the type of closing you are performing. Process o After you have designated the type of closing, press . Levinson Lyon will: 1. Make the year-end closing calculations and journal entries, and 2. Begin an Account Balances Update. ================================================================= 6 - 4 ================================================================= MISCELLANEOUS PROCESSING ================================================================= In addition to the functions which are a part of normal processing, there are some optional utility functions which you may need to perform, including: - Journal Transaction File Maintenance - Journal Transaction File Listing - Reconstruct Account Balances - Clone Chart of Accounts - Combine General Ledgers ================================================================= 7 - 1 ================================================================= JOURNAL TRANSACTION FILE MAINTENANCE ================================================================= The Journal Transaction File is a multiple record file which maintains a record for each journal transaction entry. There are three functions which affect the contents of the Journal Transaction File: 1. Journal Transaction Entry, 2. Journal Transaction Corrections, and 3. Journal Transaction File Maintenance The first two functions are accessible with a full or limited access password. Journal Transaction Entry requires that the entries you make and the journals you make them in are in balance. You may also optionally impose account verification during Transaction Journal Entry. The Journal Transaction Corrections function allows some changes to be made for existing records, but will not permit changes to be made to a record's processing period, journal number, or amount. Journal Transaction File Maintenance, on the other hand, which is only accessible if you have entered a full access password, is a relatively nonrestricted function. It may be used to add, change, delete, and inquire records in the Journal Transaction File. The only restriction imposed during Journal Transaction File Maintenance is account verification, i.e. any account number you enter must represent a posting account in your Chart of Accounts. When you exit from Journal Transaction File Maintenance, if you have made any changes to the file, Levinson Lyon begins the Account Balances Update function, printing an Error Analysis Report, etc. The update will be performed from the period of record, i.e. from the oldest period which you have processed since the last time the Account Balances Update was performed. If, for example, you use the Journal Transaction Maintenance function to change transactions in period 3 and then in period 5 of the current year, the update function will begin with period 3, even though the last period you processed was period 5. 7 - 2 If any errors are found, they will be listed in the update function's Error Analysis Report. You must then correct the errors and perform the Account Balances Update function by selecting it from the menu. (See Account Balances Update for details on that function.) Note that the Account Balances Update function checks for journal numbers and names, but it does not require the journals to balance, i.e. using the Journal Transaction File Maintenance function may result in a balanced General Ledger with out-of-balance journals. SELECTION o Select - File Maintenance Enter 10 - Journal Transaction ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** JOURNAL TRANSACTION MAINTENANCE *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ ACTION: dd hange elete nquire . ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Transaction Number: ..... ³ ³ ³ ³ Posting Year (C/N): . ³ ³ S Posting Period (1-13): .. ³ ³ Y ³ ³ S G/L Account: .... - .... ³ ³ T Journal Number: .. ³ ³ E Reference: ..... ³ ³ M Date: .. / .. / .. ³ ³ Description: .................... ³ ³ Amount: ............. ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ F1 -Process F2 -Clear F3 -Prev F4 -Next F5 -First F6 -Last Esc -Menu 7 - 3 Each Journal Transaction File record displays the same information that was entered for the record, with the following exceptions: ACTION: The ACTION represents the typical file maintenance functions. o Enter the letter (A, C, D, or I) corresponding to your selection. Transaction Number The transaction number identifies the location of the transaction in the Journal Transaction File. Each time you enter a transaction via Journal Transaction Entry, Levinson Lyon assigns the next available transaction number, although during that procedure you do not see those numbers. Although it is not recommended, you may also add transactions to the file via Journal Transaction File Maintenance. If you do so, Levinson Lyon will display the next available transaction number and require you to use it. Transaction numbers for existing records are available from a number of sources, including the: - Journal Transaction File Listing - Journal Transaction Report - General Ledger Report 7 - 4 o If you are changing, deleting, or inquiring a transaction, enter the number of that transaction. Process o When the maintenance form is complete, press to perform the ACTION you have selected. When the action is complete, you may: 1. Process another transaction, or 2. Press to begin the Account Balances Update function. ================================================================= 7 - 5 ================================================================= JOURNAL TRANSACTION FILE LISTING ================================================================= The Journal Transaction File Listing is an 80 column report that lists the contents of the Journal Transaction File for all transactions or a range of transactions. If serves as a reference for: - Journal Transaction Correction - Journal Transaction File Maintenance The listing is printed in transaction number order and includes: - Transaction number - Processing period (year and period) - G/L Account Number - Reference - Date - Description - Amount (Debit prints positive, Credit prints negative) Note that the transaction number is assigned by Levinson Lyon and becomes the record ID for each journal transaction entry (Journal Transaction File record). SELECTION o Select - File Listing Enter 7 - Journal Transaction 7 - 6 ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** JOURNAL TRANSACTION LISTING *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ Starting Transaction: ..... ³ ³ ³ ³ Ending Transaction: ..... ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Print Mode: ³ ³ ³ ³

rinter isplay ile . ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ F1 -Print Report F2 -Clear Esc -Return to Menu Print Report o When the report format is complete, press to continue with the printing procedure. ================================================================= 7 - 7 ================================================================= RECONSTRUCTING ACCOUNT BALANCES ================================================================= Reconstruct Account Balances performs an Account Balances Update from the first period in the current processing year. Normally, an Account Balances Update is only performed if an invalid account is encountered when balances are being updated for: - Journal Transaction Entry - Journal Transaction Interface - Gross Profit Inventory Adjustment - Tax Accrual Adjustment - Journal Transaction File Maintenance It may also be performed by selecting it from the menu. In all of these "normal" cases, the update is performed from the period of record, i.e. from the oldest period which you have processed since the last time the Account Balances Update was completed. You may, however, force the period of record to period 1 of the current year and perform an Account Balances Update for all processing periods by selecting Reconstruct Account Balances. When and why you might need to do this is not predictable. But whatever the reason, if your account balances do not reflect the transactions in the Journal Transactions File, then the answer is to reconstruct your account balances. 7 - 8 SELECTION o Select - Utilities Enter 3 - Reconstruct Account Balances If errors are detected: 1. Return to the menu. 2. Make the necessary corrections, and 3. Reselect the reconstruction function until it is completed. ================================================================= 7 - 9 ================================================================= CLONING A CHART OF ACCOUNTS ================================================================= The Chart of Accounts Cloning function is designed for those users who are processing more than one company, and the companies they are processing use the same or very similar Charts of Accounts. The cloning function copies the Chart of Accounts from a designated company into the Chart of Accounts File for the company being processed. SCENARIO An accountant handles the general ledger function for two companies that are in the same type of business. To simplify the setup procedure for the second company, he: 1. Sets up the files for the first company, including the company's Chart of Accounts. 2. Sets up everything but the Chart of Accounts for the second company and uses the cloning function to copy the first company's Chart of Accounts, and 3. Uses the Chart of Accounts Maintenance function to change the "cloned" Chart of Accounts to fit the second company. Note that the cloning function: - Must be performed from the receiving company, i.e. the cloning function imports another Chart of Accounts. - Can only be performed if the company you are processing has Chart of Accounts and Account Balances Files that have been newly initialized. 7 - 10 SELECTION o Select - Utilities Enter 2 - Clone Chart of Accounts ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** CLONE CHART OF ACCOUNTS *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ ³ ³ Enter the COMPANY ID of the company whose ³ ³ chart of accounts you wish to clone: .................... ³ ³ ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ ÉÍÍÍÍÍ» ÉÍÍÍÍÍ» º ÄÙ º to Proceed with Copy º Esc º to Exit to Menu ÈÍÍÍÍͼ ÈÍÍÍÍͼ Enter the COMPANY ID of the company whose chart of accounts you wish to clone: Levinson Lyon will search the charter subdirectory for the company ID you enter. If the company data is located on a different drive, you must specify the complete path. For example: D:\CHARTER\DEMO o Enter the ID for any company that has a Chart of Accounts you would like to clone for the company you are processing. ================================================================= 7 - 11 ================================================================= COMBINING GENERAL LEDGERS ================================================================= The Combining General Ledgers function is an option which allows the consolidation of multiple companies' general ledgers into one. SCENARIO A property management company charged with the responsibility of managing several properties each owned by a different limited partnership needs to know the combined financial results of operations. In addition, they need to report on the individual financial status of each of the properties. The management company produces the full array of general ledger financial reports for each property (company) and they use the combined General Ledger Function to report on the group of properties as a whole. Note that before you perform the Combining Function, you must: 1. Add a new company ID to the Company File that will contain the merged data (e.g., COMB). 2. Initialize the data files for the new company. 3. Clone or set up a chart of accounts for the new company which contains all of the accounts in every company to be merged. 4. Set up the general files for the new company. 5. Select the new company for processing. 7 - 12 SELECTION o Select - Utilities Enter 4 - Combine General Ledgers ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º * * * COMBINE GENERAL LEDGERS * * * º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ This program combines the balances from the General Ledgers of the ³ ³ companies specified below into the General Ledger of the currently ³ ³ selected company. ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Enter Option: . ³ ³ ³ ³ nitialize the current company G/L before merging companies ³ ³ erge specified companies without initializing current G/L ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ ³ ³ Specify the IDs of the companies to be merged and the Journal Number that ³ ³ will receive their account balance totals. ³ ³ ³ ³ Co Id Jrn Co Id Jrn Co Id Jrn Co Id Jrn Co Id Jrn ³ ³ ...... .. ...... .. ...... .. ...... .. ...... .. ³ ³ ...... .. ...... .. ...... .. ...... .. ...... .. ³ ³ ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ F1 -When Ready F2 -Clear Esc -Return to Menu 7 - 13 Enter Option: nitialize the current company G/L before merging companies erge specified companies without initializing current G/L Initializing the current company G/L is the recommended procedure that will delete transactions and zero out account balances that have been stored from the previous merge session. If you perform the merge without initializing the current G/L, the new data will be added to the previously merged data. You will not need to initialize if: - You are performing the merge for the first time in a newly initialized company, or - You need to combine 11 or more companies and you are merging the second or subsequent groups of companies. Companies who need to combine more than 10 company General Ledgers should: 1. Initialize the current G/L to clear out any existing data from a previous merge. 2. Merge the first 10 companies. 3. Repeat the merge for the remaining companies using the merge option. o Enter an "I" to initialize the current company and zero out any previously existing account balances, or Enter an "M" to merge without initializing the current G/L. 7 - 14 Co Id Jrn Up to ten companies may be combined in the current company at any one time. You may specify a different journal number for each of the companies you are merging or use the same journal number for all merged companies. Using a different journal number for each of the merged companies will facilitate any adjustments you may need to perform in the individual General Ledgers. o Enter the company ID of the company's General Ledger account balances you are merging and Enter the journal number of the current company that will receive the merged data. Process o When information is complete, press to process. Levinson Lyon will: 1. Combine the General Ledgers for the companies specified and enter their transactions in the journal specified for the current company. 2. Print an error analysis and update report. When the merge is complete, you may 1. Repeat the merge to combine additional general ledgers, or 2. Press to return to the menu. ================================================================= 7 - 15 ================================================================= CHANGING PERIOD NUMBERS ================================================================= Levinson Lyon provides a utility program (GLNEWFIS.EXE) for globally changing the period numbers of transactions in a General Ledger. This utility will be helpful if: - Your company has had a change in their fiscal yearend, or - You have erroneously posted a large amount of journal transactions to a period which had no previous transactions. If you plan on using this utility, you must follow the detailed procedures for: - Preparing to use GLNEWFIS - Using GLNEWFIS Note that this utility program may be used to convert period numbers (00 to 13) in either the current or next processing years. In addition, all transactions for the periods you specify will be converted to the new period's numbers. PREPARING TO USE GLNEWFIS Before you can begin using the GLNEWFIS program utility, you should make a backup of the company which contains the periods you will be changing. The utility will be executed on a secondary (dummy duplicate) company and will change the periods in that company only. Your original company will remain unaffected by the utility program. Once the program has been executed you may continue to use the secondary company for your daily processing or you can copy the data of the secondary company into the directory containing your original company. Appendix A - 1 Preparation procedure: 1. Make a backup of the data to be converted. 2. From the Charter Directory (CD\CHARTER) make a directory that will contain the data of the secondary company. For example, at the DOS prompt, enter: C>MD NEWFIS Where NEWFIS is the company ID of the secondary company where the data will be stored in its new fiscal periods. 4. Copy the General Ledger files from the old fiscal company (original) directory to the secondary company directory. For example, enter: C>COPY OLDFIS\*.GL NEWFIS Where OLDFIS is the company ID where youre data is stored in the old fiscal format (original) and NEWFIS is the company ID where your data will be stored in the new fiscal format (secondary). 5. Access the Levinson Lyon Master Menu and use the Utilities submenu to add the secondary company (NEWFIS) to the Company File via Company File Maintenance. Be sure to specify the number of accounting periods and the fiscal yearend date. 6. Select the secondary company (e.g. NEWFIS) for processing via Select Another Company. 7. Reinitialize the JOURNAL.GL file for the secondary company (e.g. NEWFIS). For example, from the Master Menu: A. Select - Initialize Data Files. B. Select G/L and enter the applicable password. C. Proceed through the warning screen by pressing . D. From the Initialization submenu, Enter <3> - Initialize selected files. Appendix A - 2 E. Move the cursor to the Journal entry. CAUTION: Be careful not to enter any numbers for any of the other files as it may result in the loss of your data. F. Type "1" into the space next to Journal and press . G. Proceed through the space calculations screen by pressing . H. After the file has been initialized, press to return to the Master Menu. 8. Press - Applications and Select 5 - the General Ledger. Now you are prepared for running the GLNEWFIS program. Appendix A - 3 RUNNING GLNEWFIS SELECTION o At the General Ledger Menu where you would normally enter a selection number, Enter a "Z" and press ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** RUN PROGRAM BY NAME *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ ³ ³ ³ ³ ³ ³ Enter program to run: ............ ³ ³ ³ ³ ³ ³ ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ ÉÍÍÍÍÍ» or º Esc º to return to the MENU ÈÍÍÍÍͼ o Enter "GLNEWFIS". Appendix A - 4 ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** CHANGE FISCAL YEAREND *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ ³ ³ Enter the COMPANY ID of the company whose ³ ³ transactions you wish to change: .................... ³ ³ ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ ÉÍÍÍÍÍ» ÉÍÍÍÍÍ» º ÄÙ º to Proceed with Change º Esc º to Exit to Menu ÈÍÍÍÍͼ ÈÍÍÍÍͼ Enter the company ID of the company whose transactions you wish to change: Levinson Lyon uses the journal transactions for the Company ID you enter to make the period conversions. o Enter the ID of the company whose transactions you wish to change. (e.g. OLDFIS) Appendix A - 5 Enter the number of periods you wish to change (OR "Q" to quit): Levinson Lyon has a hidden period (00) where the closing entries are stored for the current and next processing years. If you will be changing period numbers for the current year only, calculate the number of periods you will be changing and add 1 (C00) for the hidden period in the current processing year. If you will be changing period numbers for the next year, calculate the number of periods you will be changing and add 2 to your count for the hidden periods C00 and N00 in the current and next processing years. You may enter up to 14 period numbers. Although the hidden period numbers need to be included in your count, they should not be converted to another period number. SCENARIO Suppose that you have entered transactions for January through June as periods C01 through C06 into the G/L and realize that your fiscal yearend is really October 31. That means that these transactions should have been entered into periods C03 through C08. In this case, you are going to move six months of data. However, because there is a hidden period where closing entries from the previous year are stored (period C00), you always add 1 to your count. Therefore, your response in this case should be 7. o Enter the number of periods you wish to change including the hidden period(s) where closing entries are stored. Appendix A - 6 ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** CHANGE FISCAL YEAREND *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ ³ ³ ³ ³ ³ ³ ³ ³ ³ ³ ³ ³ ³ ³ ³ ³ ³ ³ ³ ³ ³ ³ ³ ³ ³ ³ ³ ³ ³ ³ ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ Periods are specified as the combination of the Year (C for current year and N for next year) and period number (00 through 13). In our scenario, we wanted to move C01 to C03, C02 to C04, etc. Since we want to change seven periods, we must specify 7 from/to periods. o Enter the appropriate period numbers "from and to" that will be converted, and When all periods "from and to" have been entered correctly, enter an "N" for no more changes. Appendix A - 7 PROCESS Levinson Lyon will begin processing your period changes. The transactions from the original company (e.g. OLDFIS) period 1 will be in period 3 of the secondary company (e.g. NEWFIS), OLDFIS period 2 transactions will be in NEWFIS period 4, etc. The data for your original company will not be changed. Reconstruct Account Balances Perform a reconstruct on the account balances of the secondary (NEWFIS) company. o Select - Utilities Enter 3 - Reconstruct Account Balances, and When the reconstruct is complete, you may: 1. Use the secondary (e.g. NEWFIS) company for your future entries, or 2. Copy the data back to the original (e.g. OLDFIS) company and continue processing data for that company. For example, at the DOS prompt in the Charter directory enter, C>COPY NEWFIS\*.* \CHARTER\OLDFIS ================================================================= Appendix A - 8 ================================================================= PROCEDURE SUMMARY ================================================================= GETTING STARTED (2-1) 1. Initialize your General Ledger data files (2-2) 2. Display the General Ledger menu (2-11) 3. Set up the General Ledger general files and print their contents (2-12) DAILY PROCESSING (3-1) 1. Maintain the general files (as required) (3-5) 2. Enter journal transactions (3-6) 3. Print the Journal Transaction Report (3-23) 4. Make journal corrections, if necessary (3-26) 5. Update the Account Balances (3-33) SPECIAL JOURNAL PROCESSING (4-1) 1. Use the optional recurring and reversing journal functions as necessary (4-2) 2. Use the optional journal transaction interface function as necessary (4-5) 3. Use the optional gross profit inventory adjustment when necessary (4-8) 4. Use the optional tax accrual adjustment function when necessary (4-12) FINANCIAL REPORTING (5-1) Print the following reports at the end of each processing period or at any time provided an account balances error condition does not exist: - Working Trial Balance (5-2) - General Ledger Report (5-6) - Balance Sheet (5-10) - Income Statement (5-16) - Income Statement - Columnar (5-24) - Statement of Changes (5-30) - Statement of Funds Flow (5-34) Index 1 - 1 YEAR-END PROCESSING (6-1) Perform the Year-End Closing Function (6-1) MISCELLANEOUS PROCESSING (7-1) Perform the following optional utility functions as necessary: - maintain the Journal Transaction File (7-2) - print the Journal Transaction File Listing (7-6) - reconstruct the Account Balances (7-8) - clone the Chart of Accounts (7-10) - combine General Ledgers (7-12) ================================================================= Index 1 - 2 ================================================================= REPORT GLOSSARY/INDEX ================================================================= Balance Sheet (5-10) The Balance Sheets are formatted by the Balance Sheet accounts in your Chart of Accounts, using posting account balances from the Account Balances File. The report is based on a user defined processing period and year and may be printed with or without zero-balance accounts. General Ledger Report (5-6) The General Ledger Report lists the contents of the Journal Transaction File for a range of G/L account numbers and is based on a user defined processing period and year. It may be printed with or without zero balance accounts and may include transaction detail. Income Statement (5-16) The Income Statements are formatted by the Income Statement accounts in your Chart of Accounts, using the posting account balances from the Account Balances File. You may print an Income Statement for any period in the current or next processing year with options to include a budget, prior year, or an account percentage comparison. Income Statement - Columnar (5-24) You may print a Columnar Income Statement if you have a wide carriage printer. The Columnar Income Statement may be printed for a range of accounting periods (12-13) side-by-side including a line total. Index 2 - 1 Statement of Changes (5-30) The Statement of Changes is a report that provides an analysis of the sources and uses of cash in an 80 column report format based on the balances in your Balance Sheet accounts and your Balance Sheet account types. Statement of Funds Flow (5-34) The Statement of Funds Flow is similar to the Statement of Changes. It provides an analysis of the sources and uses of cash in an 80 cloumn report format based on the balances in your Balance Sheet accounts and your Balance Sheet account types. Working Trial Balance (5-2) The Working Trial Balance lists the balances in your posting accounts in a work sheet form, providing debit and credit columns and extra work area for making adjustments. Index 2 - 2 ================================================================= INDEX ================================================================= Account Balances File features 2 - 93 listing 2 - 99 modifying 2 - 97 reconstructing 7 - 8 updating 3 - 2, 3 - 33 Budget File features 2 - 101 listing 2 - 105 modifying 2 - 103 setting up 2 - 101 Chart of Accounts cloning 7 - 11 features 2 - 17 listing 2 - 31 modifying 2 - 87 numbers 2 - 19 simplified setup 2 - 22 testing 2 - 102 types 2 - 67 verifying 2 - 124 Department Name File features 2 - 44 listing 2 - 47 modifying 2 - 45 Department Quick Add 2 - 49 Division Name File features 2 - 39 listing 2 - 42 modifying 2 - 40 General Ledger consolidation 7-12 initializing data files 2 - 2 interfacing 4 - 5 menu 2 - 11 password entry 2 - 3 updating 1 - 9 Gross Profit Inventory Adjustment File 2 - 112 Gross Profit Inventory Adjustment Function 4 - 8 Journal Name File features 2 - 107 modifying 2 - 108 listing 2 - 110 Journal Transaction Correction 3 - 26 Index 3 - 1 Journal Transaction File features 7 - 2 modifying 7 - 3 Journal Transaction Report 3 - 23 Journal Transactions canceling 3 - 21 correcting 3 - 26 entering 3 - 6 listing 3 - 23 modifying 3 - 16 posting 3 - 22 Recurring And Reversing Journals features 4 - 2 posting 4 - 4 Reports Balance Sheet 5 - 10 General Ledger Report 5 - 6 Income Statement 5 - 16 Income Statement 5 - 24 Statement of Changes 5 - 30 Statement of Funds Flow 5 - 34 Working Trial Balance 5 - 2 Schedule File features 2 - 55 listing 2 - 60 modifying 2 - 56 setting up 2 - 50 Statement Titles And Comments File 2 - 13 Summary Statements 2 - 62 System Control File 2 - 121 Tax Accrual Adjustment File 2 - 117 Tax Accrual Adjustment Function 4 - 12 Year-end Processing final closing 6 - 1 interim closing 6 - 1 Index 3 - 2