Multi-Location Accounting Setup

The Multi-Location Accounting feature of Connected Business is a feature that allows companies, who have multiple locations or branches, track the financials per location.

This article talks about setting up multi location accounting in Connected Business.

This feature is only available in Connected Business v14 and higher.

Set Up New Company

If you want to use multi location accounting, you need to have a newly-created database/company to make sure that the required setup for the feature is met and accurately implemented before data records are created.

If you are an existing user who wants to use the feature, you need to close your current database and create a new one implementing the correct procedures.

If you are already running your financials on a “By Location" preference, you need to run the system location wizard utility to convert to multi location accounting.

Create Database

  1. Sign-in to Connected Business > System > Company > New Company.  The New Company Wizard will be displayed. Click Next to proceed.

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  2. In the Company Category page, select Company Detail from the Category Checklist panel. Alternatively, you can click on Next.

  3. In the Company Information section, enter the company details.

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    It is recommended to untick the Default Settings option. This allows you to enter all the information needed by the system based on your preference instead of using the default settings of the demo database.

  4. After entering the company details, click Create Database Now! button.

Set Up Accounting Period

After creating the database, set up the current accounting period.

  1. From the Category Checklist panel, select Accounting Period. The Accounting Period Wizard will be displayed. Click Next.

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  2. In the Period Criteria page, define the criteria for the accounting period then click Next.

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  3. In the Current Period page, specify the current period of the company from the dropdown list.

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  4. Click Next and Finish to complete the wizard.

Set Up Account Codes Per Location

After defining the current fiscal year and accounting period, set up the account codes per location. Click the Account Code Detail from the Category Checklist panel. Alternatively, you can click Next.

Each account code should be segmented based on the number of locations.

In setting up the account codes, you can either create new account codes or import existing account codes.

To create new account codes,

  1. Click the New icon () to display the Chart of Accounts Wizard. Click Next.

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  2. In the Source Option page, select the Create user-defined Accounts option. Click Next.

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  3. In the Segment Structure page, select the Segmented Account Structure option. Define the character separator for your segmented accounts and confirm if you want to apply the segments to revenue and expense account only or all account codes created. Click Next.

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  4. In the Add New Account Code (User Defined) page, enter the account codes and account code details e.g. Petty Cash, Regular Checking.  You only need to enter the account code once as the system will automatically multiply the account codes per location. After entering all the account codes, click Next.

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  5. In the Define Segments page, define the account code segment structure per location e.g. Country, State, City, Location. Click Next.

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  6. In the Define Segment Details page, enter the segment details based on the defined account segment structure (see table below for the example). Click Next.

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    COUNTRY
    Code Description
    US United States
    STATE
    Code Description
    NY New York
    CITY
    Code Description
    MAN Manhattan
    FLU Flushing
    LOCATION
    Code Description
    MAIN Main Warehouse
    OUT Outlet

  7. In the Generated Segments page, choose the segments you want to use in creating your Chart of Accounts (see table below for the example). Click Next.

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    COUNTRY
    Segment Code Segment Option
    US New York
    STATE
    Segment Code Segment Option
    NY Manhattan
    Flushing
    CITY
    Segment Code Segment Option
    FLU Outlet
    MAN Manhattan

  8. In the Account Code List, the list of generated segmented account codes will be displayed.

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  9. Click Next and Finish to close the wizard. The created account codes will be loaded in the Chart of Accounts page.

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To import existing account codes,

  1. Launch the Import Manager application. Double-click the Import Manager icon from your desktop or go to Start menu > All Programs > Connected Business 14 > Tools > Connected Import Manager 14. The Import Manager window will be displayed. For more details on importing in Connected Business v14, refer to Run Import Manager in Connected Business v14.

    If the database connection is not yet configured, the Connected Application Configuration Tool will be displayed. Enter the database credentials as needed then click Save and Close.

  2. From the Import List panel, double click on Chart of Account and locate the import template. The import template details will be displayed.

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  3. Click Validate to check for data errors.

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  4. Once validation is completed, click Import to start importing the account codes.

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  5. Once the account codes are successfully imported, close the Import Manager window.

  6. Go back to the New Company Wizard. In the Chart of Account page, click the Refresh icon () to view the imported account codes.

    You can also import your existing account codes right after creating the company database and before creating the accounting period.

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Set Up Default Accounts

After creating or importing all of your account codes, set the default accounts that will be used by the system to generate the journal entries.  These accounts will be used as the default when creating new location, thus, you need to modify the default accounts per location. To set up default accounts,

  1. Select Default Account from the Category Checklist panel.  Alternatively you can click Next. The list of posting groups, sorted by tabs, will be displayed.

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  2. Select the posting group to view the posting accounts e.g. Sales Order.

  3. From the posting accounts list, select the account e.g. Revenue Freight and click the Edit icon (). The Maintain Default Accounts form will be displayed.

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  4. Select the account category from the list (e.g. Accounting) and click the Detail tab.

  5. In the Account Code column, select the account code for the location from the dropdown list.

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    After assigning the account codes for the default accounts, create the location for your company.

Create Location

You can already create the locations for your company directly from the New Company Wizard. This allows you to set and assign the account codes per location while creating the new company database. However, before you can create the locations, make sure to set the account period and account codes per location. If you create a new location without setting up the account period and account codes, a message prompt will be displayed indicating that Account Period is required.

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To create a location,

  1. Select Location Detail from the Category Checklist panel.

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    A default location (MAIN) is already created upon creating the company database.You can also reuse the default location set up in the application. Simply click the Edit ()icon and modify the location description and accounts assigned to the location according to your preferences.

  2. Click the New ()icon to create a new location. The Location form will be displayed.

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  3. Enter the location details e.g. Outlet Warehouse.

  4. After entering the location details, modify the accounts according to the location. Go to the Accounts tab and the list of account codes for the location will be displayed.

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    The accounts listed will come from the default accounts set up in the default location.

  5. Manually change the accounts according to the location. Simply select the account code for the location from the dropdown list.

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    To update the account codes easier, upon assigning the first correct account code to the location, just copy and paste the segmented account, except the account code number e.g. US-FLU-OUTLET.

  6. Click Save and Close.

  7. In the Location Detail page, click the Refresh () icon and the new location will be added in the list of locations. You can also do the same procedure to all other locations in your company.

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Set Up Bank/Bank Account Per Location

Though it is not required to have a bank per location, it is recommended to have a separate bank account for each location. To set up bank,

  1. Select Bank Detail from the Category Checklist panel.

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  2. Click New icon () to create a new bank. The Bank Wizard will be displayed. Click Next.

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  3. In the Bank Information page, enter the bank details and click Next.

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  4. In the Bank Account Information page, enter the bank account details.

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  5. Click Next and Finish to close the bank wizard. The Bank form will be displayed. If you want to create another bank, click New or if you want to create a bank account in the same bank for another location, click New Bank Account.

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    After setting up the bank and bank account per location, click Next to set up the banking preference.

Configure Bank Preference

To set up the default accounts preferences for banking,

  1. Select Preference from the Category Checklist panel. Click the Edit icon to load the Banking Preference form.

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  2. Set the default accounts for each field in the form (where applicable) and click OK.

  3. After entering all the details for the banking preference, you can click Next and go through all the categories in the company checklist, or click Finish to sign-in to the new database.

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Enable Multi Location Accounting

After setting up your new company, you can now enable the multi-location feature. To do this

  1. Go to Accounting module > Setup > Preferences. The Accounting Preference form will be displayed.

  2. In the Accounts To Use section, tick Sales Analysis. A message prompt will be displayed indicating that the journal entries to be created by the system will come from Sales Analysis. Click OK to proceed.

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  3. Once enabled, select Location. A message prompt will be displayed indicating that the journal entries to be created by the system will come from Location. Click OK to proceed.

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  4. Click OK. A message prompt will be displayed to confirm the changes made in the Accounting Preference form. Click Yes. The System Location Account Wizard will be displayed. Click Next.

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  5. In the System User Accounts per Location page, the list of account codes per location will be displayed. Depending on the number locations, you can click Next to review the account codes for each location.

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  6. In the System Location Account Codes page, all account codes not set up correctly per location (as detected by the system), will be displayed e.g. same account code is used on different locations.  You can select the correct account code to be assigned per location form the Account Code Partner column dropdown list. Click Next.

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    Though this page helps you validate the account codes setup, it is still recommended to check and make sure that all account codes per location are correctly set up.

  7. In the Inter Location Accounts per Location, create or assign the account codes per location for the following suspense accounts types: Inventory, Prepayment, Cost of Goods Sold. If you have suspense accounts already set up, simply assign the correct account code for the suspense account type per location from the dropdown list.

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    If you want to create new account codes for the suspense accounts, click the New Account Code icon to create the segmented suspense account code per location. The Chart of Accounts Wizard will be displayed. Go through the whole wizard to create the suspense account codes. After completing the wizard, assign the account codes to the correct suspense account type per location.

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  8. Click Next and Finish to complete the wizard.

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Set Up Financials Per Location

Create Financial Statement Layout Per Location

  1. Go to Accounting module > Setup > Financial Layout.  The Financial Statement Layout form, with the layout types, will be displayed.

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  2. Select the layout type from the list e.g. Profit & Loss.  The Financial Statement Layout – Profit & Loss form will be displayed.

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  3. Select the line type to view the account codes.

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    By default, the generated layout by the system includes all the account codes for all locations.

  4. Filter the accounts code per location. Click the Filter Criteria menu. The Filter Criteria dialog box will be displayed.

  5. In the Account Segment Code field, enter the location name e.g. Main. Click OK.

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    Tick the Always include non-segment Account checkbox if there are account codes that are not segmented, otherwise, untick.

    The Account Code List will display all the account codes for the specified location.

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  6. Click Save and Close to save the filtered layout.

  7. If you want to automatically generate the financial statement layout for each location, click the Auto Generate Financial Statement button. This will generate the balance sheet and profit & loss layout for each location. Filter the financial statement layout and rename according to the location e.g. My Company - PNL – MAIN, My Company - BS – MAIN.

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  8. Click Save and Close to apply changes.

View Financial Statement Per Location

To view the financial statement per location,

  1. Go to Accounting module > Financial > Financial Center. The Chart of Account form will be displayed.

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  2. If you want to view the trial balance per location, click the Filter Criteria button and enter the location name in the Filter Criteria dialog box to view the trial balance for the location.

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    If you want to view the financial statement layout per location, select the financial statement layout for the location from the View dropdown list.

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    The financial statement of the location selected will be displayed.

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Multi-Location Transaction Preference

The default location, for both customer and supplier transactions, will be based on the defined default payment receipt preference of the company.

It is recommended to set only one preference to be applied in the system to maintain record accuracy. You must decide which preference works best according to your company’s business process.

To set the preference, where the system will get the default location for customer transactions, go to Customer module > Setup > Customer Preference. The Customer Preference form will be displayed. In the Default Payment Receipt section, define where the system will get the default location for all customer transactions.

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Set Default Location

Get Location from Customer Ship To

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If this preference is selected, the default location of the transaction will be based on the Customer’s Ship To location.

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Get Location from Current User Sign In

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If this preference is selected, the default location of the transaction will be based on the location defined in the My Account form of the currently signed-in user.

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Set Default Bank Account

You also need to define where the system will get the bank account for the transaction based on the defined default location.

If the default location is set to Customer Ship To, you can choose to get the default bank account from the payment type or the location.

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If the default location is set to Current User Sign In, the bank account will come from the location, by default.

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Get Bank Account from Payment Type

If this preference is selected, the default bank account for the transaction will be based on the payment type tied to the payment term assigned to the customer e.g. Credit Card.

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For companies with multiple stores or locations, since the bank account associated with the payment type assigned to the payment term/payment term group may vary per location, it is recommended (if applicable) to set up the payment types, payment terms, and payment term groups for each location.

Payment types, payment terms and payment term groups should be manually set up per location.

  • Set Up Payment Type

    Since bank accounts may vary per location, the payment types should be multiplied per location as each payment type has a default bank account assigned. To create a new payment type,

    1. Go to Banking > Setup > Payment > Type. The list of payment types will be displayed.

    2. Click the New button. The form will switch to the Detail tab.

    3. Enter the payment type details then click Save and Close to close the form or click Save and New to close the form and create another payment type.

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      You can create as many payment types as needed.
  • Set Up Payment Term

    Payment terms needs to be set up per location. To do this,

    1. Go to Banking > Setup > Payment > Term. The list of payment terms will be displayed.  Alternatively, you can also create new payment terms through the New Company Wizard.

    2. Click the New button. The form will switch to the Detail tab.

    3. Enter the payment term details e.g. COD_Manhattan.

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    4. Click Save and Close to close the form or Save and New to create another payment term for another location. You can create as many payment terms as needed.

      You can also edit the existing default payment terms as preferred, except the Payment Term name. Double click on the payment term and the form will switch to the Detail tab. Modify the payment term details as needed, then click Save and Close. If you want to delete the payment term, click the Delete button.
  • Set Up Payment Term Group

    To create a payment term group,

    1. Go to Banking > Setup > Payment > Group. The list of active payment term groups will be displayed.  Alternatively, you can also create new payment term groups through the New Company Wizard.

    2. Click the New button. The form will switch to the Detail tab.

    3. Enter the name for the payment term group in the Payment Term Group Field e.g. Payment Term Group_ Manhattan.

    4. In the Existing Payment Term pane, select the payment terms to be included in the group per location. All payment terms selected should have the same location.

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    5. Click Save and Close.

Get Bank Account from Location

If this preference is selected, the default bank account for the transaction will be based on the bank account assigned to the default location of the customer ship to or the currently signed-in user.

If you want to use the bank account from the default location assigned to the Customer Ship To, you need to assign the default bank account to be used per location. To do this,

  1. Set the Get Location From to Customer Ship To and the Get Default Bank Account From to Location then click OK. The Bank Account Per Location form will be displayed.

  2. Select the bank account to be used per location from the drop down list. It is required to assign a bank account for each location.  You cannot close the form unless bank accounts have been assigned to all locations.

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  3. Click Save and Close.

  4. In the Customer Preference form, click OK to apply changes.

Alternatively, you can also set the bank account directly from the Location form.

  1. Go to Inventory module > Location > Find Location. The list of locations will be displayed.

  2. Select location to load the Location form.

  3. Go the Accounts tab and select the bank account to be used for the location form the Bank Account Name dropdown list.

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You can also do the same procedure for setting the default location and bank account for all supplier transactions. You can set the preference from Supplier module > Setup > Preferences.

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  • Monday, 23 December 2013