Peachtree has a new name: 2014 Study Guide ADVANCED Learn how to set up and use more advanced features, including Time & Billing and Job Costing FOR USE WITH SAGE 50 ACCOUNTING 2014—U.S. EDITION Also includes: • Accounting Behind the Screens – detailed explanations of common accounting transactions • Check Your Knowledge – short-answer questions to test your knowledge • Apply What You Have Learned – guided exercises to practice what is learned
Transcript
Peachtree has a new name:
2014 Study Guide
ADVANCED
Learn how to set up and use more advanced features, including Time & Billing and Job Costing
FOR USE WITH SAGE 50 ACCOUNTING 2014—U.S. EDITION
Also includes:
• Accounting Behind the Screens – detailed explanations of common accounting transactions • Check Your Knowledge – short-answer questions to test your knowledge • Apply What You Have Learned – guided exercises to practice what is learned
Advanced Study Guide for Sage 50 – US Edition Learn how to set up and use more advanced features,
This document and the Sage 50 – US Edition software may be used only in accordance with the accompanying Sage 50 – US Edition End User License Agreement. You may not use, copy, modify, or transfer the Sage 50 – US Edition software or this documentation except as expressly provided in the license agreement.
Visit our web site at www.SageU.com, or call 1-800-626-0941 to learn about training classes that are added throughout the year.
Information in this document is intended solely as general information with respect to common business issues and is not to be construed as professional advice. It is always best to consult a tax or accounting professional for all tax and account related questions. THE INFORMATION HEREIN IS PROVIDED “AS IS” AND ALL WARRANTIES ARE EXPRESSLY DISCLAIMED, INCLUDING BUT NOT LIMITED TO ANY WARRANTY: OF MERCHANTABILITY; OF FITNESS FOR ANY PARTICULAR PURPOSE; OF NON-INFRINGEMENT OF ANY PROPRIETARY RIGHT OF ANY THIRD PARTY IN ANY COUNTRY; OTHERWISE ARISING OUT OF ANY PRODUCT, PROPOSAL, SPECIFICATION OR SAMPLE; AND ANY WARRANTY THAT THE DOCUMENT IS ERROR FREE. No license, express, implied, by estoppel or otherwise, to any intellectual property right is granted by this document. Sage Software may make changes to the information in this document at any time, without notice. Recipient is solely responsible for assessing the suitability of the information and assumes all risk of use.
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Contents ............................................................................................ i-3 Welcome .................................................................................................................................................. i-6 Learning Objectives ............................................................................................................................ i-6 How to Use the Curriculum ................................................................................................................. i-6 Document Conventions ....................................................................................................................... i-7 How to Open the Bellwether Garden Supply Sample Company .......................................................... i-8
Lesson 1 – Using Periodic General Ledger Functions ................ 1-1 Entering Account Budgets ................................................................................................................. 1-2 Consolidating Sage 50 Accounting Companies ................................................................................. 1-7 Apply What You Have Learned ........................................................................................................ 1-11
Exercise 1.1 – Entering Budgets ................................................................................................ 1-11 Exercise 1.2 – Copying and Adjusting Budget Information ......................................................... 1-14
Lesson 2 – Using Periodic Accounts Payable Functions ........... 2-1 Creating Purchase Orders Automatically ........................................................................................... 2-2 Processing a Prepayment .................................................................................................................. 2-6 Paying a Vendor Using a Credit Card ................................................................................................ 2-8 Recording a Vendor Refund ............................................................................................................ 2-10 Managing 1099 Vendors .................................................................................................................. 2-13 Check Your Knowledge ................................................................................................................... 2-20 Apply What You Have Learned ........................................................................................................ 2-21
Lesson 3 – Using Periodic Inventory Functions .......................... 3-1 Creating Master Stock Items .............................................................................................................. 3-2 Utilizing Serialized Inventory Items .................................................................................................... 3-4 Changing Item Prices......................................................................................................................... 3-7 Tracking Assembly Builds With Work Tickets .................................................................................. 3-11 Revising the Bill of Materials ............................................................................................................ 3-14 Using Multi-Pack / Units of Measure ................................................................................................ 3-16 Valuing Inventory ............................................................................................................................. 3-19 Check Your Knowledge ................................................................................................................... 3-21 Apply What You Have Learned ........................................................................................................ 3-22
Processing a Prepayment .................................................................................................................. 4-2 Recording a Customer Refund ........................................................................................................... 4-4 Managing Customers who are also Vendors ...................................................................................... 4-5 Applying Finance Charges ................................................................................................................. 4-9 Writing Off Bad Debts ...................................................................................................................... 4-12 Reconciling Aged Receivables with the General Ledger .................................................................. 4-14 Check Your Knowledge ................................................................................................................... 4-16 Apply What You Have Learned ........................................................................................................ 4-17
Exercise 4.1 – Entering a Customer Refund .............................................................................. 4-17 Exercise 4.2 – Writing off Bad Debt ............................................................................................ 4-21
Lesson 5 – Using Periodic Payroll Functions .............................. 5-1 Entering Flat-Rate Payroll Fields ....................................................................................................... 5-2 Entering Calculated Payroll Fields ..................................................................................................... 5-3 Understanding Adjusted Gross .......................................................................................................... 5-5 Check Your Knowledge ..................................................................................................................... 5-7 Apply What You Have Learned .......................................................................................................... 5-8
Exercise 5.1 – Setting up a Flat-Rate Deduction .......................................................................... 5-8
Lesson 6 – Setting Up and Using Time and Billing ..................... 6-1 Introduction ........................................................................................................................................ 6-2 Adding Time Ticket Employees .......................................................................................................... 6-5 Entering Time Tickets ........................................................................................................................ 6-6 Using Time Tickets to Pay Employees ............................................................................................. 6-11 Entering Expense Tickets ................................................................................................................ 6-11 Applying Tickets to Sales Invoices ................................................................................................... 6-13 Time and Expense Reports ............................................................................................................. 6-15 Check Your Knowledge ................................................................................................................... 6-17 Apply What You Have Learned ........................................................................................................ 6-18
Exercise 6.1 – Adding Time Ticket Employees........................................................................... 6-18 Exercise 6.2 – Adding Activity Items .......................................................................................... 6-20 Exercise 6.3 – Adding Charge Items .......................................................................................... 6-22 Exercise 6.4 – Entering Time Tickets Using the Daily Tab ......................................................... 6-24 Exercise 6.5 – Entering Time Tickets Using the Weekly Timesheet ........................................... 6-27 Exercise 6.6 – Using Time Ticket Hours in Payroll ..................................................................... 6-29 Exercise 6.7 – Entering Expense Tickets ................................................................................... 6-31 Exercise 6.8 – Applying Time and Expense Tickets to Customer Invoices ................................. 6-34
Lesson 7 – Setting Up and Using Job Cost .................................. 7-1 Introduction ........................................................................................................................................ 7-2 Entering Job Defaults......................................................................................................................... 7-5 Adding Jobs ....................................................................................................................................... 7-9 Adding Phases ................................................................................................................................ 7-12 Adding Cost Codes .......................................................................................................................... 7-13 Entering Job Beginning Balances .................................................................................................... 7-14 Entering Job Estimates .................................................................................................................... 7-16 Selecting a Job ................................................................................................................................ 7-17 Using Jobs with Accounts Payable .................................................................................................. 7-18 Using Jobs with Time Tickets ........................................................................................................... 7-19 Using Jobs with Payroll .................................................................................................................... 7-20 Using Jobs with Inventory Items ...................................................................................................... 7-21
Advanced Study Guide for Sage 50 – US Edition Contents
Using Jobs with General Journal Entries.......................................................................................... 7-22 Using Jobs with Accounts Receivable .............................................................................................. 7-24 Job Cost Reports ............................................................................................................................. 7-30 Advanced Job Features ................................................................................................................... 7-33 Check Your Knowledge ................................................................................................................... 7-50 Apply What You Have Learned ........................................................................................................ 7-51
Exercise 7.1 – Setting up a Job .................................................................................................. 7-51 Exercise 7.2 – Setting up Phases............................................................................................... 7-52 Exercise 7.3 – Setting up Cost Codes ........................................................................................ 7-54 Exercise 7.4 – Creating a Job Estimate...................................................................................... 7-55 Exercise 7.5 – Copying From an Existing Job ............................................................................ 7-57 Exercise 7.6 – Applying Purchases to a Job .............................................................................. 7-59 Exercise 7.7 – Applying Time Tickets to a Job ........................................................................... 7-60 Exercise 7.8 – Applying Payroll Hours to a Job .......................................................................... 7-63 Exercise 7.9 – Applying Inventory Cost to a Job ........................................................................ 7-65 Exercise 7.10 – Posting Overhead to a Job ............................................................................... 7-66 Exercise 7.11 – Entering a Contract Bill as a Sales Order .......................................................... 7-67 Exercise 7.12 – Billing a Contracted Job .................................................................................... 7-68 Exercise 7.13 – Billing a Cost Plus Job ...................................................................................... 7-69 Exercise 7.14 – Applying Sales to a Job .................................................................................... 7-71
Lesson 8 – Using Sage 50 Quantum Accounting ........................ 8-1 Establishing Security Roles ............................................................................................................... 8-2 Utilizing SmartPosting ........................................................................................................................ 8-6 Utilizing Order Process Workflow ....................................................................................................... 8-9 Configuring My Dashboard .............................................................................................................. 8-14
Lesson 9 – Customizing Sage 50 Accounting .............................. 9-1 Modifying Task Window Layouts ........................................................................................................ 9-2 Utilizing Memorized Transactions ...................................................................................................... 9-5 Copying Transactions ........................................................................................................................ 9-8 Customizing the Sage 50 Accounting Desktop .................................................................................. 9-9 Apply What You Have Learned ........................................................................................................ 9-13
Exercise 9.1 – Setting up a Sales Invoice Layout ....................................................................... 9-13 Exercise 9.2 – Entering a Memorized Transaction ..................................................................... 9-15 Exercise 9.3 – Using a Memorized Transaction ......................................................................... 9-17
This Advanced Study Guide for Sage 50 – US Edition is a guide developed for users who want to learn Sage 50 Accounting 2014. This book contains 37 exercises to help you learn how to use Sage 50 to manage the accounting needs of your business. After completing the activities in this book, you will be able to manage your accounting procedures more effectively and efficiently.
Learning Objectives In this course, you will learn to:
• Use Periodic functions in General Ledger, Accounts Payable, Inventory Accounts Receivable and Payroll
• Set Up and Use Time and Billing
• Set Up and Use Job Cost
• Use Sage Quantum Accounting Functions
• Customize Sage 50 Accounting
How to Use the Curriculum Use this book interactively. It has been designed to teach how to use the more advanced features of Sage 50 Accounting 2014 by introducing you to new material in a section, and then reinforcing that material with activities that you perform using Sage 50 Accounting.
Each activity in this guide involves a sample company installed with Sage 50 Accounting. The activities are based on everyday accounting transactions and can be applied to your own company regardless of the type of business. The sample company, Bellwether Garden Supply, is a company that provides its customers with a variety of gardening and landscaping products and services.
To get the most from this guide:
• Read each section carefully, opening the windows and screens in Sage 50 Accounting and studying them yourself.
• Use the online Help in the program for supplemental information on various fields and functions.
Advanced Study Guide for Sage 50 – US Edition Contents
• You can use one of the sample companies provided in Sage 50 for viewing windows and screens.
• Perform the exercises following each lesson to reinforce your learning. As you complete an exercise, use the online Help and the User’s Guide supplied with Sage 50 for further information or to answer any questions you might have about the window and its function.
Document Conventions In Sage 50 Accounting, the navigation centers group related records and tasks such as Customer & Sales, Vendors & Purchases, etc. In the Basic Study Guide, this transaction-based terminology is used; however, in this Advanced Guide, accounting terminology is also used. For example, Customers & Sales may be referred to as Accounts Receivable, and Vendors & Purchases may be referred to as Accounts Payable.
You will also notice throughout the Guide special icons indicating notes, tips and warnings. In addition, special icons are used to indicate the edition of Sage 50 Accounting in which a particular feature or function can be found.
How to Open the Bellwether Garden Supply Sample Company
1. In Sage 50 Accounting, close all companies that may be open by selecting File from the menu bar and then Close Company.
2. On the Start screen, select Explore a sample company in the Other Tasks area.
3. Depending on your edition of Sage 50 Accounting, you may see one or more sample companies listed on the Explore a sample company window. Select Bellwether Garden Supply and click OK.
You should now be in the Bellwether Garden Supply sample company.
Advanced Study Guide for Sage 50 – US Edition Contents
NOTE: If Bellwether Garden Supply is not available, or you cannot open the sample company, make a backup of your current company and then ask your system administrator to use Sage 50’s Repair function on the installation disc to reinstall missing installation files. This process will reinstall Sage 50’s sample companies. Note that running Repair will not remove or affect your company’s Sage 50 data.
Lesson 1 – Using Periodic General Ledger Functions
Several functions in General Ledger are often only used once or twice per year, such as maintaining a budget and consolidating companies. In this lesson, you will learn how to:
Entering Account Budgets Budgets can be entered for each account using the Budgets feature under the Maintain menu. These budget amounts appear on Financial Statements that compare actual activity to the budget assigned to the account.
Maintain Budgets Window The Maintain Budgets window is used to enter and update budget information for each account, for up to four fiscal years. In addition, you can print a budget variance report from this window. Fields of interest are described below.
Budget Name: Enter or select a budget name from the list. In Sage 50 Premium Accounting, you can maintain multiple budgets, to allow for revisions or to compare to different scenarios.
Account Filters: Use these filters to select ranges of accounts that you want to view. Use the Department Mask field to filter your budget by department mask. In Sage 50 Premium Accounting, you can select to filter by Account Segment, in addition to Type.
View Fiscal Year: Use this field to select which fiscal year you want to view. You can select from up to four fiscal years.
Advanced Study Guide for Sage 50 – US Edition Lesson 1 – Using Periodic General Ledger Functions
After the correct Budget Name, Account Filters and Fiscal Year have been selected, the budget can be entered. Simply type the amounts in the appropriate rows and columns.
When entering a budget, a small toolbar (called the Quick Action Buttons) may appear, providing an easy way to copy, paste and adjust the budget. These buttons can be viewed or hidden by selecting the option from the Edit menu.
To copy an amount to another cell:
After entering an amount in a cell, click Copy. Then, select the cell that you want to paste the amount into, and then select Paste. To copy an amount to multiple cells, click and drag the cursor over those fields. The cells are highlighted in blue to indicate they are selected. Then click Paste. The amount is pasted into all of the selected cells.
To copy an amount to an entire row:
Select an amount, and then click Copy on the small toolbar. Next, select Edit from the menu bar at the top of the window. Then, choose Select, and Entire Row. The row is now highlighted in blue. Click Paste on the small toolbar in the grid.
Lesson 1 – Using Periodic General Ledger Functions Sage 50 Accounting 2013
The Autofill function, found on the Maintain Budgets toolbar, allows you to fill in the budget using actual amounts from Sage 50 Accounting, amounts in the current budget, or amounts in a separate budget.
Use actual amounts from Sage 50: use this option to open the following window where you select actual amounts to populate the current budget.
Copy amounts from the open budget: use this option to open the following window where you select the periods from the current budget to copy. This is especially helpful to copy a single column to multiple columns.
Advanced Study Guide for Sage 50 – US Edition Lesson 1 – Using Periodic General Ledger Functions
Copy amounts from another Sage 50 budget: use this option to open the following window where you can select another budget to copy from. This is especially helpful when creating a new budget based on another budget. (The Save As function on the toolbar can be helpful for this as well.)
Adjusting Amounts
You can adjust the amount of a single cell or many cells by using the Adjust option. To do so, select the cell or cells that you want to adjust. You can select a single cell by clicking it, or you can select an entire row, column, or even the entire budget by clicking and dragging the cursor over the cells you want to adjust. Once you have highlighted the amounts you want to adjust, click Adjust on the small toolbar. This opens the Adjust Budget Amounts window.
Lesson 1 – Using Periodic General Ledger Functions Sage 50 Accounting 2013
Enter the dollar amount or percentage that you want to adjust the amounts by, and then specify a rounding figure, if necessary. Finally, click OK, and the highlighted amounts are adjusted.
NOTE: If you want to adjust the amounts up, enter a positive number for the dollar amount or
percent; if you want to adjust the amounts down, enter a negative number.
Advanced Study Guide for Sage 50 – US Edition Lesson 1 – Using Periodic General Ledger Functions
During the creation of a new company, a holding company can be established to consolidate multiple Sage 50 Accounting companies, as shown below. This allows you to have consolidated financial statements for multiple businesses.
PREMIUM: Consolidating companies is available in Sage 50 Premium Accounting and higher.
To specify the companies that will be consolidated in this company, select each company from the list in the left hand box and click Add. If the company does not appear in the list, you can use the Browse button to search for it.
Lesson 1 – Using Periodic General Ledger Functions Sage 50 Accounting 2013
If the subsidiary companies you choose require user IDs and passwords for access, you need to enter the ID and password for each company.
When consolidating companies, there are some rules that must be observed:
• Same version: The companies you choose as subsidiary companies must all have been created in the same release of Sage 50 Accounting—for example, Sage 50 Premium Accounting 2013.
• Same accounting method and fiscal-year: The subsidiary companies you choose must all use the same accounting method (that is, cash or accrual) and have the same fiscal-year structure. The consolidated company you create will share these same attributes.
• Same Account Types: For all subsidiary companies you choose, each general ledger account must be of the same exact type (for example, Account 10001, Petty Cash).
• Same Equity-Retained Earnings Account: All subsidiary companies you choose must use the exact same account number for their Equity-Retained Earnings account.
Advanced Study Guide for Sage 50 – US Edition Lesson 1 – Using Periodic General Ledger Functions
• Combined Budget: The new consolidated company contains transaction and budgeting information brought over from the subsidiary companies. Budget information for subsidiary companies is imported into the consolidated company along with the charts of accounts of the subsidiaries. Budgets for each account in each subsidiary is totaled to create the budget for the corresponding account in the consolidated company.
• General Journal Description: To determine the origin of transactions created in subsidiary companies, general journal descriptions include the company name of the subsidiary company in which a transaction was created.
• Transaction Reference: All transactions created in the consolidated company include the reference "Consolidated Trans."
• Account Segment Structure: If the account segment structure for the consolidated companies is the same, the structure IS copied automatically to the master company when it is created. However, if the structure is not the same, Sage 50 leaves the segment fields blank in the master company and notify you as such when you create the master company.
Reconsolidating Companies
Sage 50 Premium Accounting and higher gives you the power to maintain multiple companies and consolidate their financials using a consolidated company. You can create General Ledger entries that cross multiple companies, maintain budgets for multiple companies, and print consolidated financial statements while working in the consolidated company.
IMPORTANT NOTE: Only general ledger account records from the subsidiary companies are
imported and/or merged into the holding company. Vendor, Customer, Employee, and other maintenance records are not imported.
Additionally, only general ledger account balances are imported into the holding company. Transactions and transaction details are not imported.
You can reconsolidate the consolidated company at any time by selecting File, Reconsolidate Company, and using the Reconsolidate Company window.
Reconsolidate Company Window On the Reconsolidate Company window, you can add or remove companies from the consolidated company, reconsolidate, and add or modify passwords. Each tab is described below:
Lesson 1 – Using Periodic General Ledger Functions Sage 50 Accounting 2013
Companies Tab On the Companies Tab, you can add or remove the companies that make up your consolidated company. Fields of interest are described below:
• Reconsolidate budgets: Select this check box to have Sage 50 automatically reconsolidate budget information when Reconsolidate is selected.
• Reconsolidate: Click to reconsolidate the companies using the new configuration. Sage 50 will automatically reconsolidate the charts of accounts and budget figures for reporting.
WARNING: The reconsolidation process deletes all transactions created within the consolidated company. If you have added any new subsidiary companies during reconsolidation, transaction data is instead imported into the consolidated company from those added sub companies.
Passwords Tab If any of the subsidiary companies you have added require a user ID and password to grant user access, select the Passwords tab. The added subsidiary companies appear in the Company column at the left of the grid. For each company appearing on the left side, enter the required user ID and password in the User ID and Password columns.
Advanced Study Guide for Sage 50 – US Edition Lesson 1 – Using Periodic General Ledger Functions
Exercise 1.1 – Entering Budgets Goal In this exercise, you will learn how to enter a budget.
Scenario Budgets for Bellwether Garden Supply have been determined for the income and expense accounts used by the company. Follow these steps to enter General Ledger account budget amounts for fiscal year 2014.
NOTE: The activities included in this study guide are designed to be performed in the
Bellwether Garden Supply sample company, available in all editions of Sage 50. To access this company, select Explore a sample company from Sage 50’s startup screen.
1. On the Banking navigation center, select New Budget from the Analysis Tools icon.
2. Enter Budget 1 in the Budget Name field.
3. Enter Bellwether Budget in the Description field.
4. Select to Start with a blank budget, and then click Finish.
5. Find Account ID 40000-AV. The budget for this account is the same each month. You enter a budget amount for January and copy the amount to the remaining months.
Lesson 1 – Using Periodic General Ledger Functions Sage 50 Accounting 2013
Lesson 2 – Using Periodic Accounts Payable Functions
Sage 50 Accounting provides several options which are used on a periodic basis to process transactions more efficiently, including automatically creating Purchase Orders for Sales transactions or based on item quantities and minimum stock levels and paying vendors with a credit card. Additional payment transactions such as processing prepayments, vendor refunds and 1099 vendors are also key to efficiently handling payable transactions. In this lesson, you will learn how to:
With the Automatic Purchase Order Creation feature, you can have Sage 50 Accounting automatically create Purchase Orders for inventory items when Sales Orders or Sales Invoices are created, or based on item quantities and minimum stock levels.
COMPLETE: Automatic Purchase Order creation is available in Sage 50 Complete Accounting and
higher.
Auto-creation for Sales Transactions
To enable the auto-creation of Purchase Orders for sales transactions, access the Set Up Inventory Defaults window from the Inventory Items icon in the Inventory & Services navigation center.
There are two options at the bottom of the Ordering tab that control the way the auto creation of purchase orders works. You can choose whether or not you want to auto create POs for either drop ship Sales Orders and Invoices and/or non-drop ship Sales Orders and Invoices. If neither option is selected, there is no automatic creation of Purchase Orders for sales transactions.
Advanced Study Guide for Sage 50 – US Edition Lesson 2 – Using Periodic Accounts Payable Functions
There are several prerequisites that must be met for the auto creation of Purchase Orders from drop ship Sales Orders and/or Invoices.
• You must be set up for Real-Time posting to the General Ledger. For more information on the posting method, refer to the Basic Study Guide, Creating a New Company lesson.
• Each inventory item that is added to the Purchase Order must have a valid Vendor ID selected in the Preferred Vendor field on the Maintain Inventory window.
• The user must have ADD access rights to Purchase Orders.
If any of these conditions are not met, there is no automatic creation of Purchase Orders, and you will receive a message in Sage 50 informing you of this.
When these conditions are met, Sage 50 automatically generates Purchase Orders when a Sales Order or Sales Invoice is entered and saved or when a Quote is converted to either a Sales Order or Sales Invoice. These Purchase Orders have the Vendors selected as the Preferred Vendor for each particular item and the quantity of the item as entered on the Sales Order or Invoice. They will NOT have a Purchase Order number associated with them, but are assigned when you print the Purchase Orders.
Non-Drop Ship Transactions
There are also several conditions that must be met for the auto creation of Purchase Orders from non-drop ship Sales Orders and Invoices.
• Each inventory item that is added to the Purchase Order must have a valid Vendor ID selected in the Preferred Vendor field.
• The user must have ADD access rights to Purchase Orders.
• Each item should be set up with a Minimum Stock and Reorder Quantity.
• The quantity ordered of one or more of the items must cause the quantity available to fall below the minimum stock quantity for that item.
When these conditions are met, Sage 50 automatically creates Purchase Orders when you enter and save Sales Orders and Sales Invoices with items ordered on the Apply to Sales tab. Also, Purchase Orders are created for Quotes that are converted to Sales Orders or Sales Invoices. Finally, Receipts for items entered on the Apply to Revenues tab of the Receipts window will create Purchase Orders.
The quantity of the item that appears on the auto created Purchase Order is either the quantity needed to meet the obligation plus the minimum stocking quantity or the reorder quantity, whichever is greater.
WARNING: Sage 50 Accounting does not auto create Purchase Orders for items on Recurring Invoices. Reordering must be performed manually for items on Recurring Invoices.
Auto-creation for Items Auto-creating Multiple Purchase Orders for items provides a powerful routine for automatically creating Purchase Orders based on quantities on hand for inventory items. With this routine, you can set up criteria for selecting the items, and establish a basis for quantities that will generate Purchase Orders that you can select for processing. Select Auto-create Multiple Purchase Orders from the Purchase Orders icon to open the Select for Purchase Orders-Filter Selection window.
Select for Purchase Orders-Filter Selection window
On the Select for Purchase Orders-Filter Selection window, you can set various criteria to determine which items should be reordered, which vendors will receive Purchase Orders, and what the quantity ordered for each item will be.
For instance, for item selection, you can choose a single item, all items, or a range of items; and then you can select the basis for selection of items, such as those that are out of stock or below minimum stock. Then, you can determine how many of each item is ordered. Once you have made your selections, click OK.
Advanced Study Guide for Sage 50 – US Edition Lesson 2 – Using Periodic Accounts Payable Functions
Next, Sage 50 Accounting determines the items to be ordered and the quantities to be ordered, and attaches those items to the Preferred Vendor in the item file. Then, the Select for Purchase Orders window opens to display the items and vendors from the filter.
On this window, you can view the items that were filtered, as well their quantity available, order quantity, unit price and total. It also displays the Preferred Vendor and you can select or deselect the Order field for the items that you want to reorder. Once your selections are complete, click Save to generate the Purchase Orders. These can later be edited or printed. You can also click Print to generate and print the Purchase Orders or E-mail to generate and e-mail the Purchase Orders to the vendors.
Prepayments are often made to vendors for deposits on goods to be purchased, or services to be provided by the vendor. Sage 50 Accounting provides an easy method to record and utilize prepayments, as explained below.
Entering a Prepayment
When you pay a vendor a prepayment or deposit, this amount can be applied to future invoices. To enter a prepayment, open the Payments window from the Enter Bills icon in the Vendors & Purchases navigation center.
After selecting a vendor and other information in the top portion of the window, select the Prepayment option, circled above. Next enter the appropriate Description, GL Account, and Amount in the rows below. It is recommended to enter a description of the prepayment in the Description field. Then, select a General Ledger account from the GL Account lookup list. Finally, enter the amount of the prepayment in the Amount fields. Save the transaction as usual.
Advanced Study Guide for Sage 50 – US Edition Lesson 2 – Using Periodic Accounts Payable Functions
To apply a prepayment to a vendor invoice, open the Payments window. When a vendor with a prepayment is selected from the Vendor ID lookup list, the Apply to Invoices tab appears. Prepayments are displayed with a minus sign preceding the dollar amount in the Amount Due column.
Select the Pay check boxes next to the prepayment and the invoices being paid. The payment amount reflects the total of the selected invoices minus the amount of the prepayment.
If you need to apply the prepayment to the vendor invoices, change the values in the Amount Paid column as needed so that the payment total is zero. If the prepayment amount is larger than the invoices due, you can apply only a portion of the prepayment. This leaves a partial prepayment amount available for future invoices.
If you need to pay the vendor and apply the prepayment to vendor invoices, change the values in the Amount Paid column as needed so that the payment total matches your desired check amount.
Occasionally your company may want to pay for vendor purchases using credit cards. If established properly, Sage 50 Accounting can track company credit card purchases. In doing so, you can easily reconcile credit card statements before paying monthly balances. To understand the whole process, consider the credit card a type of cash account that always has a negative balance. When a purchase is made by credit card, the Cash Account will be the credit card rather than an actual checking account. Later when a payment is made to the credit card, the negative balance is either reduced (for a partial payment of the balance) or brought to zero (if the entire balance is paid in full).
Use the following steps to assist you in this process:
1. Add the credit card account to your company's chart of accounts. Typically this is set up as an Accounts Payable type of account, using the credit card name as a description, such as “Company Visa.”
FOR MORE INFORMATION: Refer to the Basic User Guide, Setting up the Chart of Accounts lesson.
2. Add the credit card company to which you make monthly payments as a vendor. For example, “Community Bank Visa” would be the vendor.
FOR MORE INFORMATION: Refer to the Basic User Guide, Setting up Vendors lesson.
3. Enter the credit card purchases using the Payments window. Note the following when entering the purchases on the Payments window:
Vendor: use the vendor that you actually purchased the item from, not the “Community Bank Visa” vendor established above. This allows you to track who the actual vendor is, but also allows you to select invoices which may have been entered previously that can now be paid via credit card.
Check number: since a check is not written, but rather a credit card is charged, enter a reference number that will identify the transaction as a credit card payment. For example, use the date followed by a number or CC, such as 030915-CC.
Date: enter or select the actual date of the purchase.
Cash Account: enter or select the credit card account (created in step 1 above). Note that you may receive a message such as the following to indicate this is not a typical cash account used for payments.
Advanced Study Guide for Sage 50 – US Edition Lesson 2 – Using Periodic Accounts Payable Functions
Occasionally a refund is received from a vendor, for goods returned to the vendor or some other overpayment. To record this transaction, Sage 50 Accounting uses three steps, as outlined below.
1. Enter a credit memo for the vendor using the Vendor Credit Memo window in the Vendors & Purchases navigation center. You should receive this prior to receiving the refund check from the vendor.
Apply to Purchases Tab
Vendor ID: enter the Vendor from whom the refund is expected
Description: enter a description including the reason for the credit memo
GL account: enter an account to credit
Amount: enter the amount of the credit and anticipated refund
FOR MORE INFORMATION: Refer to the Basic User Guide, Processing Purchases & Payments lesson.
Advanced Study Guide for Sage 50 – US Edition Lesson 2 – Using Periodic Accounts Payable Functions
2. Enter the refund check from the vendor using the Receipts window in the Customers & Sales navigation center.
Note the following when entering the receipt of the check:
Apply to Vendor Account Tab
Vendor ID: enter the Vendor from whom the refund is received
Cash account: enter or select the bank account to which the check will be deposited
Description: enter a description including the reason for the refund
Amount: enter the amount of the refund
FOR MORE INFORMATION: Refer to the Basic User Guide, Processing Sales & Receipts lesson.
3. Apply the credit memo and the refund check using the Payments window in the Vendors & Purchases navigation center. This removes the credit memo and the refund check from the Vendor Ledgers report. (This step is similar to applying prepayments to invoices discussed previously in this lesson.)
Pay: Select the Pay check boxes next to the refund and credit memo being applied. The payment amount should be zero if the refund and credit memo are the same amount.
Advanced Study Guide for Sage 50 – US Edition Lesson 2 – Using Periodic Accounts Payable Functions
The Internal Revenue Service requires businesses to issue 1099’s to certain vendors, such as those that are not incorporated and provide services to a business, or that receive interest from a company, for annual purchases over a certain amount. (For specific information on how this applies to your particular situation, please contact your tax advisor or the IRS for additional information.) Sage 50 Accounting records information on vendors and purchases to facilitate this reporting requirement.
NOTE: 1099 amounts are recorded when a payment is entered, not when an invoice is entered. For example, if an invoice is entered with a date of December 31, 2014, but the payment is made on January 2, 2015, the amount paid is included in the 1099 amount for 2015.
Use the following steps to assist in correctly setting up Sage 50 for 1099 reporting.
1. Establish Default 1099 settings. This is accessed from the 1099s icon on the Vendors & Purchases navigation center by selecting Set Up 1099 Defaults.
When you make a payment to a vendor with the 1099 type of Interest or Independent Contractor, that payment will be included on the 1099 form for the vendor based on the 1099 settings. On the form, the payment appears in the box specified in the 1099 settings for the line item G/L account used on the payment or purchase the payment is being applied to. If the 1099 setting for the G/L account is set to None, then that amount is not included.
By default, the 1099 settings are correct for paying interest to 1099 Interest vendors and non-employee compensation to 1099 Independent Contractor vendors. If you need to change the 1099 setting for an account, use the drop-down list next to the Account ID and Description to select the appropriate 1099 setting for the account.
TIP: You only need to change the 1099 settings for an account if you are paying something other than interest to a 1099 Interest vendor or something other than non-employee compensation to a 1099 Independent Contractor vendor. If you are paying the 1099 vendor for something that shouldn't be reported on the 1099 form, you should change the 1099 setting to None for the related G/L account. "None" is the last setting in the drop-list so you will need to scroll down the list to find it.
NOTE: All accounts in your Chart of Accounts are listed, but you only need to make changes to accounts you use when making payments to your 1099 vendors. Typically, these are Expense Accounts, Cost of Goods Sold Accounts, or Inventory Accounts.
FOR MORE INFORMATION: Refer to Help in Sage 50 for an explanation of additional 1099 settings.
2. Establish 1099 Vendors. A vendor must be identified as being a 1099 vendor in order to record payments for 1099 reporting. On the Vendors window, there are two places to establish that information:
Advanced Study Guide for Sage 50 – US Edition Lesson 2 – Using Periodic Accounts Payable Functions
General tab > 1099 Type: Select Interest or Independent Contractor
Purchase Info tab > Tax ID Number: Record the tax ID number for the vendor, usually a social security number for an individual, or a federal ID number for corporations.
FOR MORE INFORMATION: Refer to the Basic User Guide, Setting Up Vendors lesson.
3. Enter Purchases as normal. Take special care to use the appropriate accounts for which the 1099 amounts should appear for reporting, as designated in the 1099 defaults established in step 1 above.
4. Enter Payments as normal. Take special care when entering amounts on the Apply to Expenses tab to use the appropriate accounts for which the 1099 amounts should appear for reporting, as designated in the 1099 defaults established in step 1 above.
5. Print the 1099 Report to review amounts. Review the information on the report, selecting the Options to modify the report to include information such as Tax ID #, payment type, etc.
6. Make corrections. After reviewing the 1099 Vendor Report, corrections are often required. Some of the common issues are discussed below, with the resolution.
Vendor not listed: Confirm the vendor is set up as a 1099 vendor. Once established as a 1099 vendor, payments made to the vendor appear on the report. See step 2 above to set up a vendor as a 1099 vendor.
Tax ID not listed: Enter the tax ID in the vendor setup.
Amount is not correct: Confirm that all payments are entered for the year. Note that the amounts included for 1099 reporting are based on the payment date, not the invoice date.
Advanced Study Guide for Sage 50 – US Edition Lesson 2 – Using Periodic Accounts Payable Functions
1099 Box/Box Desc is incorrect for a vendor: Confirm that the amounts are coded to the appropriate GL accounts for the type of 1099 to be reported. Refer to the default 1099 settings in step 1 above to confirm.
1099 Type is incorrect: Verify that the payroll tax year has not already been closed. You must print Vendor 1099 forms before closing the current payroll tax year. Closing the payroll tax year also closes the vendor 1099 information. For example, if you want to print 2013 vendor 1099 forms, the current payroll tax year must be either 2012 or 2013. If the payroll tax year is 2014 or later, you must restore a backup made before closing the payroll tax year for 2013.
Limit Met? is No: Confirm the limits established in the tax form, and that all payments are correctly entered for the vendor, including the date and appropriate GL accounts.
To confirm limits are correctly established, go to the Options of the report:
Un-select the Use lower limit defaults option to allow the Adjust limits option to be available.
Click Reset Default to return Lower Limits to default.
7. Print 1099 Forms. After reviewing the 1099 Vendor Report and making necessary corrections, the 1099 forms can be printed. Forms must be printed on pre-printed forms which can be obtained from Sage 50 Accounting Checks and Forms, a government agency (like the IRS), or various office supply stores.
WARNING: 1099 forms must be printed before closing the payroll year.
Complete the following steps to print the forms:
1. Insert blank preprinted 1099 forms into your printer.
2. From the Reports & Forms menu, select Forms, then Tax Forms.
3. Select either the 1099-INT form (for printing 1099 interest income statements for vendors as required by the IRS) or the 1099-MISC form (for printing 1099 miscellaneous income statements for vendors as required by the IRS).
4. Click the Preview and Print button which is located below the sample image on the Select a Report or Form window.
5. Verify that the year is correct.
6. If you want to manually adjust lower limits, which are established by the federal government, click the Adjust Limits button.
Advanced Study Guide for Sage 50 – US Edition Lesson 2 – Using Periodic Accounts Payable Functions
7. In the Filter vendors by section, enter or select a vendor ID range or accept the default of all vendors.
8. When finished with the settings in the filter window, select Print/E-mail.
9. In the Print dialog, Sage 50 Accounting displays the default printer. If you want to print to a different printer, use the drop-down arrow in the Name field to select a new one. Otherwise, select OK to begin printing the forms. (If you get a message that there are no forms to print, you may not have vendors set up as 1099-type vendors, or the 1099 vendors do not meet the minimum payment requirement.)
To print multiple copies, repeat the above procedure.
10. To print the summary report (form 1096), select Form 1096 Preprinted from the Tax Forms menu.
NOTE: If your company’s address information is not correct on the forms, correct the information by selecting the Edit Company Information link in the Company Information pane on the Company navigation pane.
Check Your Knowledge 1. For Sage 50 Accounting to automatically create Purchase Orders for an item, which fields
must be completed for that item on the Maintain Inventory Items window? (select all that apply)
a. Preferred Vendor field
b. Minimum Stock
c. Bill of Materials
d. Reorder Quantity
2. If a prepayment to a Vendor is entered into the Payments window, in what window would you apply that prepayment to a purchase invoice?
a. Payments
b. Purchase Orders
c. Purchases/Receive Inventory
d. Vendor Credit Memos
3. When paying a Vendor using a credit card (in the Payments window), you would always use an actual checking account for the Cash Account.
a. True
b. False
4. When recording a Vendor refund, there are three steps that should be completed. The first step is to enter a Vendor Credit Memo. The second step is the record the check in the Receipts window. The third step is:
a. Apply the Vendor Credit Memo by running Data Verification
b. Delete the Vendor Credit Memo
c. Apply the Vendor Credit Memo and the Receipt using the Receipts window
d. Apply the Vendor Credit Memo and the Receipt using the Payments window
5. If you plan on printing a 1099 for a particular Vendor, make sure that Vendor has 1099 Type set to "None" in the Maintain Vendors window.
a. True
b. False
Advanced Study Guide for Sage 50 – US Edition Lesson 2 – Using Periodic Accounts Payable Functions
Exercise 2.1 – Creating Purchase Orders Automatically from Sales Transactions
Goal In this exercise, you will learn how to automatically create purchase orders from sales transactions.
Scenario Bellwether Garden Supply wants to set up its inventory for automatic creation of Purchase Orders for non-drop ship items. Follow the steps below to set up Inventory Defaults for auto creation and for entering a Sales Order that will automatically generate a Purchase Order.
PREMIUM: Automatic Creation of Purchase Orders is available in Sage 50 Complete
Accounting and higher.
1. First, the auto creation option must be enabled in Inventory Item Defaults. In the Inventory & Services navigation area, click the Inventory Items button and select Set Up Inventory Defaults.
2. Select the Ordering tab.
3. Ensure that the check box for Enable auto creation of purchase orders for non-drop ship transactions is checked. Note that the Include purchase orders when calculating quantity available option is automatically selected and grayed out.
5. In the Customers & Sales navigation area, click the Sales Orders button and select New Sales Order.,
6. Enter PIERCE in the Customer ID field.
7. Enter 03/17/14 in the Date field.
8. Enter 03/17/14 in the Ship By field.
9. Enter a Quantity of 20.
10. Enter EQFF-13130 in the Item field.
11. Click OK on the warning telling you there are only 14 of this item in stock.
12. Click Save.
13. Click Close to close the Sales Order window.
14. Select the Vendors & Purchases navigation center.
15. To check that a purchase order was created automatically, View and Edit Purchase Orders from the Purchase Orders icon to open the Purchase Order List.
You will see a purchase order dated 03/17/14 and having no PO number.
16. Select that purchase order, and click Open. Note that the quantity ordered is 9. This includes 6 to meet the obligation on the Sales Order and 3 for the minimum stock quantity.
Advanced Study Guide for Sage 50 – US Edition Lesson 2 – Using Periodic Accounts Payable Functions
Exercise 2.2 – Automatically Create Purchase Orders for Items Goal In this exercise, you will learn how to automatically create purchase orders from
reorder quantities in inventory. Scenario Bellwether will use the Select for Purchase Orders feature to reorder inventory items.
PREMIUM: Select for Purchase Orders is available in Sage 50 Complete Accounting and
higher.
1. Select Tasks from the menubar, and then select Select for Purchase Orders.
2. In Display a list of items, select Based on: Quantity on Hand.
3. Enter 03/17/14 in the As of field.
4. Set And stock status to At or above minimum stock.
5. Set And set order quantity to: to Reorder quantity.
6. Click OK. Multiple items appear on the Select for Purchase Orders window. Based on the items’ Preferred Vendor settings, three purchase orders will be created.
Advanced Study Guide for Sage 50 – US Edition Lesson 2 – Using Periodic Accounts Payable Functions
Inventory has many advanced features that increase the power of Sage 50 Accounting for handling your inventory, even if only used periodically. In this lesson you will learn how to:
• Create master stock items
• Utilize serialized inventory items
• Change item prices
• Maintain volume discount pricing
• Create work tickets
• Revise bill of materials
• Use multi-packs and define units of measure
Exercises in this Lesson
Exercise 3.1 – Creating Master and Substock Items ......................................................................... 3-22
Creating Master Stock Items When an item is specified as a Master Stock item, the Item Attributes tab is enabled for that item. On this tab, you specify the Primary and Secondary attributes for the Master item. These attributes could include such things as size, color or weight. As you add items for the appropriate attribute, Sage 50 Accounting automatically generates substock items to match all possible combinations of primary and secondary attributes. Fields of interest are described below:
COMPLETE: This feature is available in Sage 50 Complete Accounting and higher.
• Add: Click Add to add the item and description set to the available substock items.
• Remove: Click Remove to remove the ID and description.
• Created Substock Items: Once you save a new master stock item, this table lists, by item ID, all substock items generated from the master. The table displays the primary and secondary attributes that govern each substock item, the quantity on hand for each listed item, and whether or not each item is active.
• Item ID: The item ID for each substock item consists of the ID for the Master item plus the ID for the primary and secondary attributes, respectively.
Advanced Study Guide for Sage 50 – US Edition Lesson 3 – Using Periodic Inventory Functions
Once substock items are created, they cannot be deleted except by selecting the record for the Master item and removing their primary and secondary attribute IDs.
Beginning Balances are entered for Substock items in the same manner as they are entered for standard stock items. Master items do not keep balances or quantities on hand.
Utilizing Serialized Inventory Items When an item is specified as a Serialized Stock Item or a Serialized Assembly Item, the Serial Numbers tab is enabled. On this tab, you can see a list of existing serial numbers for that item. You can specify a warranty period for the item, as well as do a search for a particular serial number.
.
PREMIUM: Serialized Stock Items are available in Sage 50 Premium Accounting and
higher.
NOTE: If you choose a Serialized Assembly Item, the Bill of Materials tab is also enabled so you can create the bill of materials for the assembly item.
Handling Serialized Inventory Items
Serialized Inventory items, as well as Serialized Assembly items, are unique in that each item must be assigned a particular number when it is received into inventory and that number must be specified when the item is sold. Serialized assembly items must be assigned a serial number when you assemble them. Costing for each item is specific to that serial number. That is why the costing on serialized items is "Specific." Sage 50 then tracks the sale of that particular item for warranty purposes.
Advanced Study Guide for Sage 50 – US Edition Lesson 3 – Using Periodic Inventory Functions
Serialized items are received into inventory using the same method as any other stock items, except that each item must be assigned a serial number when it is received. To enter serial numbers for the items being received, select the Serial No button in the toolbar on the Purchase/Receive Inventory window. This opens the Serial Number Entry window.
On this window, enter the serial number for the first item if there are several, and click Add. The serial number is recorded in the table. If you have several items that you are receiving and the serial numbers are consecutive, select the Add --- consecutive serial numbers field, and select the appropriate number from the box. At the bottom of the window, Sage 50 tells you how many serial numbers you must assign before you are done. When you have entered all of the required serial numbers, click OK to return to the Purchases/Receive Inventory window.
NOTE: If you receive serialized inventory and attempt to save the invoice without entering the serial numbers, Sage 50 warns you and opens the Serial Number Entry window automatically.
Selling Serialized Inventory Items Selling serialized items works exactly the same as for any inventory item except that you must assign serial numbers to the items sold on the Sales/Invoicing window. When you enter Quotes, Sales Orders or Proposals, Sage 50 Accounting records the serialized item but the serial number itself is assigned only at the time of invoicing. On the Sales/Invoicing window, select the Serial No button when you want to assign the serial number to the serialized item on the invoice. The Serial Number Selection window opens.
On this window, you select the check box in the list of available serial numbers for this item. If this list of available serial numbers is quite extensive, you can enter the appropriate serial number in the field and select Find to locate it in the list. Then select the check box. Once you have made the selections, click OK. If there are multiple Serialized Inventory items on the sales invoice, you can use the OK/Next button to step through the items and select the serial numbers appropriate to each item.
Beginning Balances for Serialized Inventory Items If you are entering beginning balances for serialized inventory items, enter the quantity and cost of the serialized item on the Inventory Beginning Balances window, and then select the Serial No button. This opens the Serial Number Entry window, and you can enter the serial numbers there.
Handling Serialized Assembly Items
Serialized Assembly Items are assemblies that have bills of materials but also are assigned a serial number when they are assembled. You can also specify a warranty period for the serialized assembly item. They are set up in the same fashion as standard assembly type items, but when you build or unbuild them, you must assign serial numbers. In addition, when you sell a serialized assembly item, you must assign a number to the item sold.
Advanced Study Guide for Sage 50 – US Edition Lesson 3 – Using Periodic Inventory Functions
Changing Item Prices Using the Maintain Item Prices window, you can update the sales price of multiple inventory items based on the current sales price or last unit cost. Sales prices can be changed by a specific percentage or dollar amount, the price can be rounded to a specific dollar amount, and you can change prices individually within the item list. To change item sales prices, select Item Prices from the Maintain menu.
COMPLETE: This feature is available in Sage 50 Complete Accounting and higher.
Maintain Item Prices Filter Selection Window Use the Maintain Item Prices Filter Selection window to enter filter criteria to select the items that appear in the Maintain Item Prices window.
Maintain Item Prices Window Use the Maintain Item Prices window to change the sales prices of the inventory items listed. Fields of interest are described below:
Adjustment Options
Use these options to adjust the prices for a group of items in the list.
• Select which levels to adjust: Choose the price levels to be adjusted.
• Select method of adjustment: Select one of the three options available:
- Level's current calculation, and new cost information: The adjustment is made based on each item's existing calculation using updated last unit cost or Price Level 1 changes.
- Level's default calculation: Overwrites the existing calculation or amount with the calculation chosen in inventory defaults.
- Calculation selected below: Overwrites the existing calculation or amount with the calculation specified in the following four fields. In the Use field, choose Last Cost or Current Price. Then select to increase or decrease by an amount or percentage, and specify the amount or percentage in the field to the right.
- Round New Value to: Choose not to round, or round to the next dollar or specific cent.
Item List
The item list displays items based on the choices you made on the filter selection window.
Advanced Study Guide for Sage 50 – US Edition Lesson 3 – Using Periodic Inventory Functions
• New Price/Price Level 1-10: Displays the new sales price and the current sales price for each price level. The New Price can be updated manually or by clicking Recalc after selecting a method of adjustment.
• Select: Select this check box next to each item that you want to update when you click Recalc.
Volume Discount Pricing
Volume Discount Pricing is available in Sage 50 Premium Distribution and
Manufacturing Editions, as well as Sage 50 Quantum Accounting.
Sage 50’s Quantity Discounts feature allows you to set up discounts for items based on quantity sold. This is useful if you like to reward a customer a fixed or percentage-based discount when they purchase items in bulk. For example, you can assign a discount to an item that provides a customer with a 10% discount if they purchase 25 or more of an item.
To create quantity discounts, access the Inventory & Services navigation area, click the Prices button, and select Set up Quantity Discounts.
In Maintain Quantity Discounts, enter an ID and a description for the discount. You may want to leave the description as generic as possible, since you are able to assign the discount to more than one inventory item.
For the Calculation method, select either Discount Percentage or Discount Amount.
You can round the calculated discount amount to the Next Dollar or to a specified cent.
In the Quantities and Discount table, enter the Minimum Discount quantities and the discount that is triggered when a customer purchases the minimum amount. In the above example, a customer receives a 1% discount if they purchase at least 100 stocking units of a specific item, and a 2% discount if they purchase at least 200 units.
NOTE: Applied discounts are not tiered. This means that if the customer purchases 200 items, they receive a 2% discount off the entire 200 quantity, not on just the 100 units sold above the 100 that are discounted at 1%.
In the Price Level list, select the check box next to each price level to which you want to apply the Quantity Discount. All price levels are checked by default.
Once you have defined quantity discounts, you can assign them to specific inventory items in Maintain Inventory Items.
After an item is assigned a discount, the discount automatically calculates when the quantity meets or exceeds to defined minimum quantity on quotes, sales order, proposals, sales invoices, receipts, credit memos, memorized quotes, and memorized invoices.
Advanced Study Guide for Sage 50 – US Edition Lesson 3 – Using Periodic Inventory Functions
Work Tickets are available in Sage 50 Premium Distribution and Manufacturing
Editions, as well as Sage 50 Quantum Accounting.
Work tickets provide you with an easy-to-use interface with which to monitor the build of an assembly item.
On the Work tickets window, general information about the assembly is displayed along with the quantity requirements and availability for each of the components needed to build the specified quantity of assemblies. As each step of the component list is completed, actual hours can be entered and the step can be marked as Finished. When the work ticket is complete, Sage 50 automatically builds the assemblies in your system and posts the build to your Assemblies Journal, as of the date the ticket completion date.
Important Work Ticket header fields include:
Progress Indicator: When a work ticket is created, it is considered Open until progress is recorded by checking Finished for a specific component. Sage 50 then marks the ticket as In Progress. When Close is checked on the work ticket, Finished is checked for all component and labor lines, or a Ticket Complete date is entered, Sage 50 marks the work ticket as Closed. Work ticket progress can be tracked using the Work Ticket Register report.
Date: Enter the date that work begun on the work ticket. The date entered here may not necessarily be the date the assembly is posted to the Assemblies Journal.
Work Ticket No: This field is blank the first time you create a work ticket. After the first ticket is saved, Sage 50 automatically enters the next ticket number in the sequence.
Qty to Build: In this field, enter the number of builds to be assembled. When entered, the quantity required field for each component is updated.
NOTE: You can only enter positive numbers in this field. If you need to un-build assemblies, use the Assemblies task window to do so.
Close Ticket: Check this box when work on the work ticket is complete. When a work ticket is closed, Sage 50 considers the build finalized and increases the quantity on hand for the assembly and decrease the quantity on hand for the Bill of Materials components as of the date entered at the Ticket Complete field.
Supervisor: You can assign an employee to supervise the work outlined on the work ticket. The Work Ticket Register report can be filtered by the assigned supervisor.
Needed by: Enter a date that the built assemblies are needed by.
Ticket Started: Enter the date that work begins on this work ticket. This date does not affect the progress indicator or the quantity availability of required components.
Total Est. Hours: You can enter the number of hours you think are required to complete this work ticket. The length of time you enter here can then be compared with the actual hours entered after the work ticket is completed, allowing you to fine-tune your time estimate for future builds.
Ticket Complete: You can enter the date the ticket is completed at this field.
NOTE: When you enter a Ticket Complete date, Sage 50 prompts you to close the ticket. When closed, Sage 50 updates the quantities of the assembly item and its components as of the Ticket Complete date entered.
For each component of the assembly, the following information can be entered or tracked:
Item and Description fields: Reflect the current components listed on the Bill of materials of the Assembly.
NOTE: If the assembly has revisions, the component items listed and the quantity required for each build is based on the assembly revision assigned to the assembly as of the date of the work ticket.
Required: The amount of each item required for the assembly multiplied by the number of assemblies to be built.
Advanced Study Guide for Sage 50 – US Edition Lesson 3 – Using Periodic Inventory Functions
On Hand: Gives the amount of each item on hand, not including items on sales orders.
NOTE: On Hand quantity is calculated as of the date of the work ticket. If a required component’s on hand quantity is in red, additional components need to be purchased before the work ticket can be completed and the assemblies built in Sage 50.
Available: Available quantity is calculated as the quantity on hand, minus items on open sales orders and open, accepted proposals.
Act Hours: At this field, enter the hours it took to complete each step.
Finished: Check this box if the component or labor step is complete. When a component is checked as finished, Sage 50 decreases the quantity available of the component item in your system, helping you to avoid over-committing components.
Volume Discount Pricing is available in Sage 50 Distribution, Manufacturing and
Construction editions, as well as Sage 50 Quantum Accounting.
You can make minor changes to the bill of materials for an assembly using the Revisions feature. If you want to make major changes to the bill of materials, we recommend that you create a new assembly item and copy the existing bill of materials, as outlined below.
Revisions You can access the Revisions window by selecting the Bill of Materials tab for the assembly item you want to revise, and then click the Revisions button.
The Revisions window lists all of the revisions for this assembly item. You can select Edit to make minor changes to the bill of materials for an existing revision, or you can click New to create a new revision for this assembly item.
Advanced Study Guide for Sage 50 – US Edition Lesson 3 – Using Periodic Inventory Functions
On the New or Edit Revision window, you can modify the bill of materials as necessary. Click Save when you are finished. The next time you assemble the item, Sage 50 uses the new bill of materials.
Multi-packs is available in Sage 50 Premium Distribution and Manufacturing Editions,
as well as Sage 50 Quantum Accounting.
When entering stock or assembly item records in Sage 50 Accounting, you are provided a field to define a stocking unit of measure. The stocking unit of measure is considered the unit that would be a quantity of one (1) when purchasing or selling the item. The multi-pack feature allows you to assign two multi-pack units of measurement to each stock item you create. With multi-packs you can purchase and sell in quantities that are based on units other than the default stocking unit of an item. For example, you can assign a pallet unit of measurement to an item for purchases and a case unit for sales. These can be used interchangeably.
Using multi-packs is an easy two-step process.
Setting up Multi-packs First define the units of measure with which you purchase and sell.
To create units of measure, select Set up Units/Measures from the Inventory Items icon.
Measuring units are actually created independent of your inventory, so that one multi-unit of measurement can be used with an unlimited number of inventory items.
U/M ID and Description: Enter a new U/M ID and description.
Number of Stocking Units: Enter the number of stocking units the unit of measure represents.
Second, add them to your inventory items as multi-packs by clicking the arrow button next to the Stocking U/M field in Maintain Inventory Items.
Advanced Study Guide for Sage 50 – US Edition Lesson 3 – Using Periodic Inventory Functions
Place a check in the Purchase and sell in different quantities checkbox.
If you want to purchase the item using quantities other than the default stocking unit of measure, assign a unit of measurement at the Purchasing Multi-pack U/M field. Enter a weight for the total units in the pack and enter a UPC/SCC code, if necessary.
Enter the same information in the sales multi-pack area if you plan to sell the item in units other than the default stocking unit.
NOTE: You are able to select from all three units of measure when purchasing or selling the item.
Once multi-packs are defined they can be selected on any task window that purchases and sells stock items.
NOTE: Although you purchase and sell using bulk quantities based on multi-pack quantities (i.e. QTY. 1 for one box of 50), internally Sage 50 updates inventory quantities and cost based on the item’s stocking unit.
Advanced Study Guide for Sage 50 – US Edition Lesson 3 – Using Periodic Inventory Functions
Valuing Inventory Sage 50 Accounting values inventory using the costing method associated with the Item (which defaults from the Item Class defined in Inventory Item Defaults). At times, however, a different cost may be used, as described in the Understanding System Generated Costs section below. In addition, the Inventory Valuation Report should be compared periodically to the General Ledger to ensure they agree. This is discussed in detail in the Reconciling Inventory Valuation with the General Ledger section below.
FOR MORE INFORMATION: Refer to the Setting Up Inventory lesson in the Basic
Study Guide to review assigning the costing method to an item class or item, and to review various inventory reports.
Understanding System Generated Costs When an item is sold without sufficient quantities in stock, the value of inventory is reduced by the last unit cost, which may or may not be the same as the actual cost, based on the costing method used. To adjust for this difference, a system generated cost (also called SysCosts) is recorded.
Here is an example:
1. You purchase three widgets at $10.00 each on April 3rd which brings your quantity on-hand for that item to three units. Your last unit cost is $10.00.
2. You sell four widgets for the regular retail price on April 5th, bringing your quantity on-hand to negative one (3 – 4 = -1). Since Sage 50 calculates your cost of goods sold at the time of sale and you can sell into the negative, Sage 50 must estimate the cost of goods sold for the item that was sold into the negative. It uses the last unit cost of the item to calculate the cost. So in this particular example, the cost of goods sold for the entire sale is $40.00.
3. You purchase five widgets at $10.50 each on April 7th, which brings your quantity on-hand to four units (-1 + 5 = 4). Because the sale on April 5th estimated the cost of the widget to be $10.00 based on the last unit cost and the actual cost is $10.50, there is a discrepancy of $.50.
4. Sage 50 generates a special SysCost transaction and records it in the General Ledger to correct the $.50 discrepancy.
If your business frequently sells inventory items into the negative, there is a high probability that you will eventually see a SysCost entry on your General Ledger. SysCosts perform an important role in maintaining the validity of your costing information. Using the previous example, if the five widgets that were purchased in step three had been purchased on April 4th (instead of the 7th), no SysCost would have been created.
If you want to completely avoid SysCost generation, you need to avoid selling items into the negative if there is a possibility of purchasing it at a different cost than the last unit cost.
Reconciling Inventory Valuation with the General Ledger At the end of the month, and especially the end of the year, the Inventory Valuation report should be reconciled to the corresponding inventory account in the General ledger. Typically this should be a mere formality; however, there are several common instances when this is not the case and they will be out of balance. These issues are outlined here, as well as how to determine what may be causing the problem in your system.
TIP: Be sure that the same accounting period is selected on all reports; in addition, it is highly
recommended that the standard reports are used, and not ones that have been customized.
Reasons for out of balance situation:
1. If the beginning balance amount for the GL Inventory Account did not match the beginning balance amount for your physical inventory, or the Beginning Balance at the start of your fiscal year did not match your ending balance of the previous year, the reports will not match.
2. If any entries were posted to the Inventory Account that did not originate in either the Sales Journal (SJ), Purchase Journal (PJ), Cash Receipts or Disbursements journals (CRJ or CDJ), or Inventory Adjustment Journal (INAJ), then the reports and the account(s) will not match. If any SysCost Adjustments were posted to the General Ledger, then the Inventory Valuation Report may not match. SysCost Adjustments are created when an item is sold into the negative then purchased at a different cost than the last time it was purchased, as discussed above.
3. If any inventory item class, other than stock or assembly is being posted to a GL inventory account, the General Ledger reflects the total; however, the Inventory Valuation Report does not. (The Inventory Valuation Report reports on Stock and Assembly items only.)
4. If an item was sold at one price, then sent back and adjusted back into inventory at a different price, this can adversely affect valuation accuracy.
How to troubleshoot an out of balance situation:
1. If the General Ledger and Inventory Valuation report do not match, check to see if the reports have ever matched. If they never matched, then check to see if the beginning balances in the Inventory account was correctly entered, and if they corresponded to the totals on the Inventory Beginning Balances windows.
2. If the reports matched in previous periods, then try looking in the journal column of the General Ledger for transactions with something other than SJ, PJ, CRJ, CDJ or INAJ for the inventory transactions. These transactions show on the General Ledger, but not on the corresponding valuation report.
If the reports never matched, even in closed fiscal years, and assuming that the Inventory Valuation Report is correct, a General Journal entry can be entered into the system to adjust the Inventory Account to match the Valuation Report.
Advanced Study Guide for Sage 50 – US Edition Lesson 3 – Using Periodic Inventory Functions
Check Your Knowledge 1. In the Maintain Inventory Items window, the Item Attributes tab is only available for which
Item Class?
a. Stock Item
b. Assembly Item
c. Serialized Stock Item
d. Master Stock Item
2. It can wait to assign a serial number to a Serialized Inventory item until the time of sale.
a. True
b. False
3. You can use the Maintain Item Prices window to update the price of many items at once based on their last cost.
a. True
b. False
4. In Sage 50 Quantum Accounting, if you want to make minor changes to the Bill of Materials of an Assembly item, select the ______ button on the Bill of Materials tab in the Maintain Inventory Items window.
a. Updates
b. Revisions
c. Changes
d. Adjustments
5. If you want to automate discounts on the sale of inventory items based on the quantity being sold, you must create a Quantity Discount using the Maintain Quantity Discounts window and assign the Quantity Discount in which tab of the Maintain Inventory Items window?
Exercise 3.1 – Creating Master and Substock Items Goal In this exercise, you will learn how to create master and substock items.
Scenario Bellwether Garden Supply offers a monogrammed garden hat in three colors and sizes. Since the basic hat design is the same, it can be set up as a Master Stock Item, while the color and size can be used to create substock items associated with the master.
COMPLETE: Master and Substock item classes are available in Sage 50 Complete
Accounting and higher.
1. Select the Inventory & Services navigation center.
2. Select New Inventory Item from the Inventory Items icon.
3. Enter TOOL-35700 in the Item ID field.
4. Enter Bellwether Garden Hat in the Description field.
5. Select Master Stock Item from the Item Class drop-down list.
6. Select the Subject to Commission check box.
7. In the Description for Sales field, enter Bellwether garden hat.
8. In the Description for Purchases field, enter Bellwether branded garden hat – Straw.
9. Enter 9.99 in the Price Level 1 field.
10. Click the arrow button to the right of the Price Level 1 field. Enter 8.99 in the Price field for Price Level 2.
11. Enter 7.99 in the Price field for Price Level 3.
12. Click OK to return to the item window.
13. For the Costing Method, select FIFO from the drop-down list.
14. Enter the following General Ledger accounts:
GL Sales Account 40000-MI
Advanced Study Guide for Sage 50 – US Edition Lesson 3 – Using Periodic Inventory Functions
Exercise 3.2 – Creating Serialized Inventory Items Goal In this exercise, you will learn how to create serialized inventory item records.
Scenario Bellwether sells riding mowers to its customers. Each mower is assigned a serial number to track its purchase and sale, as well as to keep warranty information on it.
PREMIUM: Serialized Inventory is available in Sage 50 Premium Accounting and higher.
1. In the Inventory & Services navigation area, click the Inventory Items button and then select New Inventory Item.
2. Enter EQLW-14211 in the Item ID field.
3. Enter Riding Mower-20 HP in the Description field.
4. Select Serialized Stock Item from the Item Class drop-down list.
5. Select the Subject to Commission check box.
6. In the Description for Sales enter Riding Lawn Mower- 20 Horse Power.
7. Click the arrow to the right of the Price Level 1 field.
Exercise 3.4 – Selling a Serialized Inventory Item Goal In this exercise, you will learn how to sell a serialized inventory item.
Scenario Williams Industries is purchasing a riding mower for their maintenance crew.
1. On the Customers & Sales navigation center, select New Sales Invoice from the Sales Invoices icon.
2. Enter WILLIAMS in the Customer ID field.
3. Enter 03/17/14 in the Date field.
4. If you do not want to print the invoice, enter Invoice No. of 10345.
If you want to print the invoice, leave the Invoice # blank.
5. On the Apply to Sales tab, enter 1.00 in the first available Quantity field.
6. Enter EQLW-14211 in the Item field.
7. Click the Serial No button.
8. On the Serial Number Selection window, select the check box for Serial Number 2033260-LM.
9. Click OK to return to the Sales Invoicing window.
10. If you do not want to print the invoice, click Save, then Close. If you receive a credit limit warning, click Yes.
11. If you want to print the invoice, click the Print button. If you receive a credit limit warning, click Yes. Enter 10345 for the First Invoice Number, and click Print. The invoice will be saved automatically after it prints. Then click Close.
Lesson 4 – Using Periodic Accounts Receivable Functions
Sage 50 Accounting provides several options which are used on a periodic basis to manage and maintain your accounts receivables. In this lesson, you will learn how to:
• Process a Prepayment
• Record a Customer Refund
• Manage Customers who are also Vendors
• Apply Finance Charges
• Write off Bad Debts
• Reconcile Aged Receivables to the General Ledger
Exercises in this Lesson
Exercise 4.1 – Entering a Customer Refund ...................................................................................... 4-17
Exercise 4.2 – Writing off Bad Debt ................................................................................................... 4-21
Prepayments are often made by customers as deposits on goods to be purchased, or services to be provided. Sage 50 Accounting provides an easy method to record and utilize prepayments, as explained below.
Entering a Prepayment
When you receive a prepayment or deposit from a customer, this amount can be applied to future invoices. To enter a prepayment, open the Receive Money window from the Receive Money icon in the Customers & Sales navigation center.
After selecting a customer and other information in the top portion of the window, select the Prepayment option next to the Apply to Revenues tab. Next, enter the appropriate Description and Amount in the rows below. It is recommended to enter a description of the prepayment in the Description field. Save the transaction as usual.
Advanced Study Guide for Sage 50 – US Edition Lesson 4 – Using Periodic Accounts Receivable Functions
To apply a prepayment to a customer invoice, open the Receive Money window. When a customer with a prepayment is selected from the Customer ID lookup list, the Apply to Invoices tab appears. Prepayments are displayed with a minus(-) sign preceding the dollar amount in the Amount Due column.
Select the Pay check boxes next to the prepayment and the invoices being paid. The payment amount reflects the total of the selected invoices minus the amount of the prepayment.
If you need to apply the prepayment to the customer invoices, change the values in the Amount Paid column as needed so that the payment total is zero. If the prepayment amount is larger than the invoices due, you can apply only a portion of the prepayment. This leaves a partial prepayment amount available for future invoices.
If you need to record a receipt from a customer and apply the prepayment to their invoices, change the values in the Amount Paid column as needed so that the receipt amount matches the amount paid by your customer.
Occasionally a refund must be given to a customer, for goods returned or some other overpayment. To record this transaction, Sage 50 Accounting uses three steps, as outlined below.
1. Enter a credit memo for the customer using the Customer Credit Memo window in the Customers & Sales navigation center.
Apply to Sales Tab:
Customer ID: enter the Customer to whom the refund is due
Description: enter a description including the reason for the credit memo
GL account: enter an account to credit
Amount: enter the amount of the credit and anticipated refund
FOR MORE INFORMATION: Refer to the Basic User Guide, Processing Sales & Receipts lesson.
2. Enter the refund check to the customer using the Payments window in the Vendors & Purchases navigation center. Note the following when entering the payment:
Apply to Customer Account Tab:
Customer ID: enter the Customer to whom the refund is due
Cash account: enter or select the bank account from which the check will be written
Description: enter a description including the reason for the refund
Amount: enter the amount of the refund
FOR MORE INFORMATION: Refer to the Basic User Guide, Processing Purchases & Payments lesson.
3. Apply the credit memo and the refund check using the Receive Money window in the Customers & Sales navigation center. This removes the credit memo and the refund check from the Aged Receivables report. (This step is similar to applying prepayments to invoices discussed previously in this lesson.)
Pay: Select the Pay check boxes next to the refund and credit memo being applied. The payment amount should be zero if the refund and credit memo are the same amount.
Advanced Study Guide for Sage 50 – US Edition Lesson 4 – Using Periodic Accounts Receivable Functions
There may be times when you both purchase from, and sell to, a particular company, thus the company is both a vendor and a customer. While this can be a complicated process to track how much you owe compared to how much is owed to you, Sage 50 Accounting can make this easier for you. Follow the tips and instructions here to assist in this process.
To illustrate this process, consider the following scenarios:
Scenario A: Suppose you owe a company $200, and that same company owes you $75. You want to be able to keep track of how much the company owes, and also how much you owe. You also want to be able to send the company a check for the difference of $125. In addition, you want to make sure the purchase invoice that you owe, and the sales invoice that you are owed, are cleared from the aging reports.
Scenario B: Suppose you owe a company $100, and that same company owes you $250. You want to be able to keep track of how much the company owes, and also how much you owe. You also want to be able to receive a check from the company for the difference of $150. In addition, you want to make sure the purchase invoice that you owe, and the sales invoice that you are owed, are cleared from the aging reports.
1. Enter the company as a vendor and also as a customer in Sage 50. (It may be helpful to use the same ID in both areas, but is not necessary.)
2. Create a clearing account in the chart of accounts to use as a temporary holding or clearing account that will maintain a zero balance. While it can be any type of account, typically it is an Other Current Liabilities account.
If the amount you owe is GREATER than the amount you are owed (Scenario A):
3. Enter the purchase invoice to the vendor ID in Purchases/Receive Inventory (in our scenario for $200)
4. Enter the sales invoice to the customer ID for the company in Sales/Invoicing (in our scenario for $75)
At this point if you check the aging reports, the amount owed is on the Aged Payables report, and the amount you are owed shows on the Aged Receivables report.
5. To write a check to the vendor, on the Payments window, select the vendor ID, then:
a. On the Apply to Invoices tab, select the purchase invoice(s) in the Pay column. (In our scenario, the amount in the Amount Paid column is $200, for the purchases from the vendor.)
b. On the Apply to Expenses tab, select the suspense/holding account GL Account added in step 2 above, and enter a negative amount equal to the sales amount you are owed in the Amount column (in our scenario, this is -$75.00). Also, be sure to enter a good description because this prints on the check. Notice that the amount of the check is the net amount owed to the company (purchases from the vendor minus sales to the customer).
Click the Journal button on the toolbar to view the accounting transaction and observe the amount you owe (entered on the Apply to Expenses tab) credits the suspense/holding account. This amount is offset in the following steps when you clear the amount you are owed.
c. Print or save the check.
If you check the Aged Payables report at this time, you would also notice that the purchase invoice no longer shows as being owed.
6. On the Receive Money window, select the customer ID, then:
a. On the Apply to Invoices tab, select the sales invoice(s) in the Pay column. (In our scenario the amount is $75 for the sales to the customer.)
b. On the Apply to Revenues tab, select the suspense/holding account GL Account added in step 2 above, and enter a negative amount equal to the sales amount, which is also the amount on the Apply to Invoices tab, in the Amount column (in our scenario -$75.00). Also, be sure to enter a good description for reference later. Notice that the amount of the receipt is zero.
Click the Journal button on the toolbar to view the accounting transaction and observe the amount you are owed (entered on the Apply to Revenues tab) debits the suspense/holding account, offsetting the amount you owe, entered in the previous step. This results in a zero balance in the suspense/holding account.
c. Save the receipt.
If you check the Aged Receivables report at this time, you would also notice that the sales invoice is no longer outstanding.
Advanced Study Guide for Sage 50 – US Edition Lesson 4 – Using Periodic Accounts Receivable Functions
If the amount you are owed is GREATER than the amount you owe (Scenario B):
3. Enter the purchase invoice to the vendor ID in Purchases/Receive Inventory (in our scenario for $100)
4. Enter the sales invoice to the customer ID for the company in Sales/Invoicing (in our scenario for $250)
At this point if you check the aging reports, the amount owed is on the Aged Payables report, and the amount you are owed shows on the Aged Receivables report.
5. To receive a check from the customer, on the Receive Money window, select the customer ID, then:
a. On the Apply to Invoices tab, select the sales invoice(s) in the Pay column. (In our scenario, the amount in the Amount Paid column is $250, for the sales to the customer.)
b. On the Apply to Revenues tab, select the suspense/holding account GL Account added in step 2 above, and enter a negative amount equal to the sales amount you owe in the Amount column (in our scenario, this is -$100.00). Also, be sure to enter a good description for reference later. Notice that the amount of the check is the net amount owed by the company (sales to the customer minus purchases from the vendor).
Click the Journal button on the toolbar to view the accounting transaction and observe the amount you owe (entered on the Apply to Revenues tab) debits the suspense/holding account. This amount is offset in the following steps when you clear the amount you owe.
c. Save the receipt.
If you check the Aged Receivables report at this time, you would also notice that the sales invoice is no longer outstanding.
6. On the Payment window, select the vendor ID, then:
a. On the Apply to Invoices tab, select the purchase invoice(s) in the Pay column. (In our scenario the amount is $100 for the purchases from the vendor.)
b. On the Apply to Expenses tab, select the suspense/holding account GL Account added in step 2 above, and enter a negative amount equal to the purchase amount, which is also the amount on the Apply to Invoices tab, in the Amount column (in our scenario -$100.00). Also, be sure to enter a good description for reference later. Notice that the amount of the payment is zero.
Click the Journal button on the toolbar to view the accounting transaction and observe the amount you owe (entered on the Apply to Expenses tab) credits the suspense/holding account, offsetting the amount you are owed, entered in the previous step. This results in a zero balance in the suspense/holding account.
c. Save the payment.
If you check the Aged Receivables report at this time, you would also notice that the sales invoice is no longer outstanding.
Advanced Study Guide for Sage 50 – US Edition Lesson 4 – Using Periodic Accounts Receivable Functions
Applying Finance Charges The Finance Charge option calculates and applies finance charges for customers. Finance charges print on customer statements; therefore, they should be applied before statements are printed.
Finance Charges are calculated for all customers who have the Apply Finance Charges option selected in the Maintain Customers/Prospects window and meet the filter criteria selected in the Calculate Finance Charge window. Finance charges are calculated using the following formula for each overdue invoice:
Finance Charge = (Number of Days Past Due)(Daily Rate)(Outstanding Invoice Amount)
Number of Days Past Due is the number of days between the date that finance charges are calculated and one of the following:
a. the invoice date if aging is set to Invoice Date in Customer Defaults OR
b. the due date if aging is set to Due Date in Customer Defaults OR
c. the date of the last finance charge calculation
Daily Rate is the percentage (set up Customer Defaults for Finance Charges) divided by 365 days.
Outstanding Invoice Amount is the amount due on the invoice.
For example: You have set up an 18% finance charge for invoices 30 days overdue. You age your customer invoices by due date.
Invoice Date: 1/1/13
Due Date 1/31/13
Invoice Amount Due: $100.00
On 3/15/13 the invoice is 43 days past due (1/31/13-3/15/13).
A finance charge applied on 3/15/13 is $2.12. The finance charge is calculated as follows:
[(18/100)/365] [43] [100.00] = 2.12 To apply finance charges, select the Finance Charge icon.
Calculate Finance Charges Window Use the Calculate Finance Charges window to select the customer or range of customers to whom finance charges should be charged, as well as the date the finance charges will be applied.
Apply Finance Charges Window After clicking OK or Starting Customer Only, the Apply Finance Charges window opens. This window gives you options for applying finance charges and setting up reporting options.
Finance Charge Report Selection Window After clicking OK, the Finance Charge Report Selection window opens. This window presents additional reporting options.
Advanced Study Guide for Sage 50 – US Edition Lesson 4 – Using Periodic Accounts Receivable Functions
Once you click OK on the Finance Charge Report Selection window, a report displays the finance charges that were calculated (the last page of this report is shown below). If you chose to apply finance charges, those charges are also created.
By applying finance charges, you create an invoice for each finance charge. These invoices have a Reference Number with the prefix FC and can be edited or deleted through the Sales Invoices icon.
In some cases customers will not pay money owed, and the accounts receivable must be written off to bad debt expense.
There are two methods to writing off bad debts:
• Direct Method: Each invoice that is a bad debt is written off to Bad Debt Expense (an expense account) as the bad debt is recognized.
• Allowance Method: A percentage of your accounts receivables is written off periodically or at the end of each fiscal year. The amount is an estimate of bad debt you believe your company incurs throughout the year. Typically this is entered using a General Journal entry debiting Bad Debt Expense (an expense account) and crediting Allowance for Doubtful Accounts (a contra-asset to Accounts Receivable). Then, each invoice is written off to Allowance for Doubtful Accounts as the bad debt is recognized.
To write off an invoice(s) whether partially paid or not paid at all as a bad debt, you need to create a transaction against the invoice directly. Entering a (modified) receipt is an easy way to do this, especially if more than one invoice is written off for a single customer. Follow the procedures below to use this method:
1. Determine the method you will use to write off bad debts. (It may help to discuss this with your consultant or accountant.)
2. Identify the customer and invoice number(s) to be written off as a bad debt. (Use the Aged Receivables Report for assistance here.)
3. On the Customers & Sales navigation center, select the Receive Money icon, then Receive Money from Customer.
4. Enter or select the customer ID associated with the invoices you want to write off as bad debts.
Sage 50 Accounting displays the outstanding invoices that are due.
5. Enter a reference number that will help identify the write off (for example, WO-001).
6. In the Cash Account dropdown list, enter or select a Bad Debt Expense account (if using the Direct Method) or an Allowance for Doubtful Accounts account (if using the Allowance method). This creates a debit to that account.
Advanced Study Guide for Sage 50 – US Edition Lesson 4 – Using Periodic Accounts Receivable Functions
NOTE: If you have the Hide General Ledger Accounts global option activated, Sage 50 does not
display the Bad Debt Expense account in this window, only the current list of cash accounts. To use the Bad Debt Expense account here, select the Journal button and change it in the Accounting Behind the Screens window.
7. On the Apply to Invoices tab, select the Pay check box next to the invoice(s) you want to write off as bad debt and zero out any discounts that calculate. This credits the Accounts Receivable account originally associated with the invoice.
WARNING: If the Hide General Ledger Accounts global option is NOT activated, whatever the last
used account was in the Cash Account field continues to default again until it is changed, even after the Receipts window is closed and reopened. If you do not change it back to your normal cash account, all Receipt transactions after the bad debt write off continue to debit the Bad Debt Expense account or Allowance for Doubtful Accounts account.
8. Save the receipt to record the write off and clear the customer balance. The invoice(s) no longer appear on the Aged Receivable report, and no longer show as outstanding.
Reconciling Aged Receivables with the General Ledger
At the end of the month, and especially the end of the year, the Aged Receivables report should be reconciled to the corresponding accounts receivable account in the General Ledger. Typically this should be a mere formality; however, there are three common instances when this is not the case and they will be out of balance. These issues are outlined here, as well as how to determine which may be causing the problem in your system.
TIP: Be sure that the same accounting period is selected on all reports; in addition, it is highly
recommended that the standard reports are used, and not ones that have been customized.
Reasons for out of balance situation:
1. When the beginning account balance for the Accounts Receivable account entered on the Chart of Accounts Beginning Balances window, and the total on the Customer Beginning Balances window (i.e. the outstanding invoices from before you started using Sage 50 Accounting) are not equal, then the Aged Receivables report and the balance in the Accounts Receivable account on the General Ledger will not match.
2. When any entries are posted to the Accounts Receivable account that did not originate in either Sales Journal (SJ) or Cash Receipts Journal (CRJ), then the Aged Receivables report and the Accounts Receivable account on the General Ledger will not match. This type of situation causes the transaction to show on the General Ledger but not on the corresponding aging report.
3. When accounts other than Accounts Receivable account is entered in the A/R Account field on the Sales/Invoicing window. The same is true if other accounts are used on the Credit Memo or Receive Money windows. This would cause the transaction to affect the aging report, but it would not affect the Accounts Receivable balance in the General Ledger.
How to troubleshoot an out of balance situation:
1. If the General Ledger and aging reports do not match, check to see if the reports have ever matched. If they never matched, then check to see if the beginning balances in the Accounts Receivable account was correctly entered, and if they corresponded to the totals on the Customer Beginning Balances windows.
Advanced Study Guide for Sage 50 – US Edition Lesson 4 – Using Periodic Accounts Receivable Functions
2. If the reports matched in previous periods, then try looking in the journal column of the General Ledger for transactions with something other than SJ, or CRJ for the accounts receivable transactions. These transactions will show on the General Ledger, but not on the corresponding aging report.
3. If the reports still do not match, try filtering the aging reports for the specific account numbers of the Accounts Receivable account. If the total on the report is now different then before you filtered for the specific account, there is a transaction entered with a different account number. Compare the reports to find the specific transaction, and drill down on it to correct it if necessary.
Exercise 4.1 – Entering a Customer Refund Goal In this exercise, you will learn how to enter a customer refund.
Scenario Williams Industries purchased a garden hose in error and would like to return it to Bellwether for a refund.
First, a check is written to Williams to refund the garden hose purchase amount and the sales tax collected from the sale.
1. In the Customers & Sales navigation center, click the Credits and Returns icon and then select Make Payment to Customer. The Payments task window displays.
2. Click the down-arrow button next to Vendor ID. Select Customer ID from the lookup list. An Apply to Customer Account tab appears below.
3. Select WILLIAMS from the Customer ID lookup list.
4. If you do not want to print the refund check, enter 10217 at the Check/Reference No. field.
If you want to print the check, leave the Check number field blank.
5. Enter 03/15/14 at the Date field.
6. On the first row of the Apply to Customer Account tab, enter Refund for unused garden hose at the Description field.
8. If you do not want to print the check, click Save, and then click Close.
If you want to print the check, click the Print button. Enter 10217 at the First check number field, and click Print. The check is saved automatically after it prints. Then click Close to exit the Payments task window.
Next, a credit memo is created to put the garden hose back into stock, remove the revenue earned from the initial sale, and remove any sales tax collected from the sales tax payables accounts.
9. Select the Credits and Returns icon, and then select New Credit Memo. The Credit Memos task window will display.
10. Select WILLIAMS from the Customer ID lookup list.
11. Enter 03/15/14 in the Date field.
12. If you do not want to print the credit memo, enter CM1015 at the Credit No. field.
If you want to print the credit memo, leave the field blank.
13. On the Apply to Sales tab, enter 1.00 at the first available Quantity field.
14. Select EQWT-15120 from the Item lookup list.
15. Click the Terms link.
Advanced Study Guide for Sage 50 – US Edition Lesson 4 – Using Periodic Accounts Receivable Functions
16. In the Terms Information window, enter 0.00 at the Discount Amount field, and enter No terms at the Displayed Terms field.
17. Click OK to return to the Credit Memos task window.
18. If you do not want to print the credit memo, click Save, then Close.
If you want to print the credit memo, click the Print button. Enter CM1015 at the First CM number field, and click Print. The credit memo is saved automatically after it prints. Then click Close to exit the Credit Memos task window.
The final step in the customer refund process is to remove the refund check and the credit memo from your Aged Receivables report. A customer receipt will be created to accomplish this.
19. Select the Receive Money icon and then select Receive Money from Customer. The Receipts task window displays.
20. Clear the Deposit ticket ID field, if necessary.
21. Select WILLIAMS from the Customer ID lookup list. The Apply to Invoices tab appears below, listing all outstanding invoices (if any), and the refund check and credit memo created in the previous steps.
22. Enter Refund0315 at the Reference field. This receipt will not be printed, so leave the Receipt number field blank.
23. Enter 03/15/14 at the Date field.
24. Manually enter Non-payment at the Payment Method field.
25. On the Apply to Invoices tab, select the Pay check box for both the refund check and the credit memo (10217, CM1015). This creates a “wash” receipt, resulting in a 0.00 net Receipt amount. Once saved, the receipt removes the refund check and the credit memo from your Aged Receivables report without affecting the balances of your general ledger accounts.
26. Click Save and then click Close to exit the Receipts task window.
Advanced Study Guide for Sage 50 – US Edition Lesson 4 – Using Periodic Accounts Receivable Functions
Exercise 4.2 – Writing off Bad Debt Goal In this exercise, you will learn how to write off bad debt.
Scenario Cummings Construction has become a non-collectable account. All outstanding balances owed by Cummings Construction will be charged off as uncollectable bad debt.
1. In the Customers & Sales navigation center, click the Receive Money icon and then select Receive Money from Customer. The Receive Money task window displays.
2. Clear the Deposit Ticket ID field, if necessary.
3. Select CUMMINGS from the Customer ID lookup list. The Apply to Invoices tab appears below, listing all currently outstanding invoices and credit memos.
4. Enter ChargeOff0315 in the Reference field. The receipt will not be printed so leave the Receipt number field blank.
5. Enter 03/15/14 in the Date field.
6. Manually enter Non-payment at the Payment Method field.
7. On the Apply to Invoices tab, clear all Discount fields.
8. Select the Pay All link to automatically check Pay next to all of the listed invoices and credit memos.
9. The receipt will need to be modified to debit a bad debt expense account instead of a cash account. Click the Journal icon on the menu bar.
10. In the Accounting Behind the Scenes window, change the Account No. of the Receipt Amount distribution row from 10200-00 Regular Checking Account to 61500-00 Bad Debt Expense.
11. Click OK to return to the Receive Money task window.
12. Click Save. Sage 50 may warn you that you have selected an account that is not typically used for the Cash account on a receipt. Click Yes.
13. Click Close to exit the Receipts task window.
Advanced Study Guide for Sage 50 – US Edition Lesson 4 – Using Periodic Accounts Receivable Functions
Payroll offers several advanced payroll fields, including fixed-rate deductions, and setting up calculated deductions. In this lesson you will learn how to:
• Enter a Flat-Rate Payroll Field
• Enter a Calculated Payroll Field
• Identify the Method used to Calculate Adjusted Gross
Exercises in this Lesson
Exercise 5.1 – Setting up a Flat-Rate Deduction………………………………………………………….5-8
Entering Flat-Rate Payroll Fields Payroll fields are holding areas for any information that is updated when a paycheck is posted. Payroll deductions and additions to pay are the most common payroll fields.
Payroll fields can be flat amounts or calculated amounts. Flat-rate fields use the same value from paycheck to paycheck, while calculated fields use the Payroll Tax Tables to derive the value for the field.
Flat-rate fields can be set up for all or just a few employees. If a field will be used by all employees and all employees use the same value, you simply set up the field in the Employee Defaults window.
If a field will be used by a few employees or each employee will have a unique value, there are two steps. First, you set up the field name and account in the Employee Defaults window. Then, you update each employee’s record to indicate the proper amount for the field.
Advanced Study Guide for Sage 50 – US Edition Lesson 5 – Using Periodic Payroll Functions
Entering Calculated Payroll Fields Calculated payroll fields use the payroll tax tables in Sage 50 to derive the value for the field. Select File, Payroll Formulas to display two options.
Choose Sage-Maintained to view the Sage-Maintained Payroll Formulas window. Sage-Maintained taxes include federal and state taxes that are shared by all companies.
Choose User-Maintained to view the User-Maintained Payroll Formulas window. User-Maintained taxes include taxes that are specific to your company, such as state unemployment insurance and union dues.
The Sage-Maintained formulas are typically updated through Sage 50’s Tax Service, while the User-Maintained formulas are updated by you each year.
NOTE: To access User-Maintained and Sage-Maintained Payroll Formulas windows, you must be subscribed to one of Sage 50’s Payroll Solutions.
User-Maintained Payroll Formulas Window You can use the Payroll Setup Wizard to create formulas for tracking vacation and sick time, as well as employee and employer 401(k) contributions. For more information, see the Basic Study Guide – Sage 50 – US Edition.
Select File, Payroll Formulas, User-Maintained to open the User-Maintained Payroll Formulas window. This window is used to set up all other calculated deductions such as garnishments, union dues, or local income taxes. Fields of interest are described below:
• Name: Enter the name of the calculation followed by a space and the two digit payroll year. Sage 50 uses the name to associate a payroll tax with an employee or employer payroll field. The name comprises two parts:
- Calculation Name: The Calculation name identifies a tax, deduction, or accrual. This name displays in the tax name column on the Employee Fields tab or the Company Fields tab.
- Payroll Year: The Payroll Year is the last two digits of the calendar year. Sage 50 will choose the correct tax name based on the check date year.
• Use this formula as a filter on the Payroll Tax report: Select this check box to make the calculation available on the Payroll Tax Report.
NOTE: The Use this formula as a filter on the Payroll Tax report box can be checked only when TAXABLE_GROSS appears in the formula on the left side of the equal sign. The Payroll Tax Report lists Taxable Gross figures based on the formula entered for each tax. Therefore, Taxable Gross must be defined in the formula.
• Tax agency: Select the government to which this calculation applies. If a State or Local government tax should apply only to a single state or single locality, enter the state or locality in the field provided. For State, enter the two-character postal abbreviation. For a locality, enter the name of the locality. This field must be duplicated in the State/Locality box in each employee record to whom the tax applies.
Advanced Study Guide for Sage 50 – US Edition Lesson 5 – Using Periodic Payroll Functions
Understanding Adjusted Gross There are two types of gross income reported in Sage 50 Accounting – unadjusted gross and adjusted gross. The type of gross that you are seeing depends on the report or area you are viewing.
Unadjusted gross is the total salary earned by an employee or, if hourly, the hours worked times the hourly rate assigned to an Hourly Field (Regular, Overtime, etc.). This amount is the total wage expense for an employee for the selected check or report date range.
Unadjusted gross is reported in the following areas. Note that the field reporting unadjusted gross is simply named “Gross”.
Reports Windows and Lists
Current Earnings Report - Gross field
Total Wages on Payroll Entry Window
Quarterly Earnings Report - Gross field
Paycheck List (optional Gross column)
Yearly Earnings Report - Gross field Forms
Payroll Register - Gross field Paycheck Stub Gross fields - This Check and YTD
Payroll Journal - Gross field (name optional)
Payroll Check Register - Gross field (Optional)
Adjusted Gross is the gross earned by an employee that is taxed by federal, state, and local taxes after certain sheltered deductions, such as a 401K contribution or a cafeteria plan, are subtracted from the gross.
Here is a very simple example:
Suppose an employee’s salary per paycheck is $2,000. The employee contributes $200 of his salary to his 401K before taxes. In this example, the employee’s unadjusted gross is $2,000 for the paycheck while his adjusted gross is $1,800.
The following reports and forms in Sage 50 will calculate adjusted gross “on-the-fly” when the form or report is viewed. It does this by looking at the formula’s Adjust settings for each employee (or defaults if “Use Defaults is checked), and deducting all pre-taxed amounts from the unadjusted gross and adding back in additional gross (such as Tips or Bonus fields).
Payroll Tax Report (Adj. Gross column) Adjust button for selected formula
Tax Liability Report (Adj. Gross column) Adjust button for selected formula
Exception Report (Adj. Gross column) Adjust button for selected formula
TIP: Try to avoid modifying gross adjustments after the first payroll run of the year. If you calculate payroll checks based on a specific setting, and then you change the setting, your payroll reports and your 941 may not synchronize.
Advanced Study Guide for Sage 50 – US Edition Lesson 5 – Using Periodic Payroll Functions
Exercise 5.1 – Setting up a Flat-Rate Deduction Goal In this exercise, you will learn how to set up a flat-rate deduction.
Scenario Bellwether Garden Supply provides uniforms and shirts for its employees, but requires that they pay for cleaning. $5 will be deducted per paycheck for some staff employees and $10 will be deducted for select managers.
1. In the Employees & Payroll navigation area, click the Employees icon, and then select Set Up Employee Defaults.
2. Select the Employee Fields tab.
3. Scroll down and find the first available blank line. Enter a Field Name of Uniforms.
4. Select G/L Account 24700-00.
5. Because some employees will deduct $10 and others will deduct $5, the remaining fields for this deduction will remain blank. Click OK.
6. Select the Employees icon, and select View and Edit Employees.
Advanced Study Guide for Sage 50 – US Edition Lesson 5 – Using Periodic Payroll Functions
7. In the Employee List, select BHUGLEY. Note that Brandon is recorded as a STAFF type employee. Select Open.
8. Select the Employee Fields tab.
9. Scroll down to the Uniforms line, and clear the Use Defaults box.
NOTE: When the Use Defaults box is checked, the default for all employees is used. By clearing the
Use Defaults box, you indicate that you need to override the defaults. If you use the default for all employees, you can select the Use Defaults box.
10. In the Amount field, enter -5.00. Note the negative sign in front of the amount.
11. Select the Save button on the toolbar. The next time a paycheck is created for Brandon, $5 will be deducted for uniform cleaning costs.
12. Using these steps as a guide, enter the following deduction amounts for the remaining employees. Click Save after each employee. The filing status is listed for reference:
13. Once you are finished, click Close on all open windows to view the Sage 50 desktop.
14. To test the deduction for each employee, click the Pay Employees icon, and select Enter Payroll for One Employee. You may see a warning regarding registering. Click OK if you receive this warning.
15. At the Employee ID, select BHUGLEY.
16. Locate the Uniforms field in the Taxes-Benefits-Liabilities Fields.
For Brandon, the deduction amount should show –5.00.
Advanced Study Guide for Sage 50 – US Edition Lesson 5 – Using Periodic Payroll Functions
17. Select the next employee, and check the Uniforms deduction. Repeat this step for each of the other three modified employees. If an employee shows a Uniforms deduction of 0.00 or the wrong amount, repeat steps 6-11 to correct the employee’s deduction.
18. Once you are finished checking each employee, select Close; and select No when asked if you want to save the transaction.
Advanced Study Guide for Sage 50 – US Edition Lesson 6 – Setting Up and Using Time and Billing
Time and Billing tracks time spent and expenses incurred while working on customer-related tasks. These amounts are tracked using tickets that can be used to pay employees and to bill clients. In this lesson, you will learn how to:
• Enter Time and Expense Tickets
• Add Time Ticket Employees
• Use Time Tickets to Pay Employees
• Apply Tickets to Sales Invoices
• Report on Time & Expense
COMPLETE: Time & Billing is available in Sage 50 Complete Accounting and higher.
Exercises in this Lesson
Exercise 6.1 – Adding Time Ticket Employees .................................................................................. 6-18
Time and Expense Tickets are available in Accounts Receivable for billing on a sales invoice, and Time Tickets can be used to pay employees. If a ticket is assigned to a job, the Payroll or Accounts Receivable transaction created based on the ticket updates Job Cost.
To track time and expenses, Sage 50 Accounting uses time tickets and expense tickets. Each ticket can be assigned to a customer, job, or administrative task. Each ticket has its own special type of inventory item. Activity items identify the type of work recorded on a time ticket. Charge items identify the type of expense recorded on an expense ticket.
Time and Expense Tickets can be accessed from the Time and Expense Tickets icon found in the Customer & Sales, Vendors & Purchases or Employees & Payroll navigation centers.
Advanced Study Guide for Sage 50 – US Edition Lesson 6 – Setting Up and Using Time and Billing
Time tickets are used to record time spent by individual employees or vendors for activities performed. Time tickets record activities that have a timed duration associated with them. These durations can be associated with customers, jobs, or administrative projects. You can include billable time ticket durations on customer sales invoices. Employee time tickets can also be applied to a paycheck if the employee is to be paid based on recorded time ticket hours.
When you use time tickets, you answer five questions.
Who--Who did the work?
Did What--What did the employee do?
For Whom--For which customer, job, or project was the work done?
How Long--How long was the employee engaged on the project?
Billable or non-billable--Are the costs billable or non-billable?
There are two methods of entering time ticket information:
• Daily: Daily time tickets are used to record time spent performing a single activity by an employee or vendor.
• Weekly: The weekly time sheet displays all the time tickets for a selected employee or vendor based on the Week Including date. Each unit duration entered under a daily column represents an individual time ticket.
Expense Tickets
Expense tickets are used to track and aid in the recovery of customer-related expenses that are not based on time. Expenses can be various charges related to a service being offered to your customer. For example, an employee who travels to a customer’s office can record the mileage on an expense ticket.
Lesson 6 – Setting Up and Using Time and Billing Sage 50 Accounting 2014
You can track time and expense tickets for customers, jobs, or administrative purposes. Each tracking option is detailed below:
• Customers: Time spent and expenses incurred can be associated with customers you intend to bill in Sales/Invoicing. You should record time and expenses for customers if you are not using job costing or if the item is not related to a job.
• Jobs: If you are tracking jobs, you can record time spent and expenses incurred for jobs, phases, and cost codes. You can later apply billable time and expense items to the customer’s invoice. The advantage to recording time and expense for jobs is that you can track details related to the completion of the project, including overhead and labor costs.
• Administrative: You can track internal activities using Time and Billing that can effectively manage process-control and overhead costs for your business. For instance, you may want to track the expenses incurred by an employee during a business trip.
Advanced Study Guide for Sage 50 – US Edition Lesson 6 – Setting Up and Using Time and Billing
Time tickets can be entered for any employee, but only employees using the Pay Method of Hourly – Time Ticket Hours can be paid based on the time tickets recorded. During payroll entry, you can add or modify hours worked if the employee worked additional hours during the payroll period. Job-related time tickets recorded for a time ticket employee automatically distribute the wage expense to the job when the employee is paid.
Entering Activity and Charge Items Activity items are used to identify the type of work recorded on time tickets. Charge items are used to identify the type of expenses recorded on expense tickets. Both activity items and charge items are set up as inventory items in the Maintain Inventory Items window.
• Activity Items: Activity items are time-measured tasks performed for customers, jobs, or internal purposes. For example, a customer needs a company logo. One of your employees will create the logo for them. The activity item in this example would be Logo Design.
• Charge Items: Charge items are expenses recorded by an employee or vendor as a result of services performed for a customer or job. Charge items are also used to record administrative expenses within the company and even employee out-of-pocket reimbursable expenses. For example, an employee travels to a customer’s office in another state and pays for the hotel room. The charge item in this example would be Lodging.
• Item Class: Select an item class from the drop-down list. Activity Item and Charge Item are the two classes used for time and billing items.
NOTE: Different fields are available for each inventory class. Once an item has been saved, the Item Class field cannot be changed.
• Item Type: This case-sensitive field can be used to filter records for reporting purposes.
Lesson 6 – Setting Up and Using Time and Billing Sage 50 Accounting 2014
Time tickets record an activity that has timed duration associated with it. Employees or vendors can record time spent performing activities, such as talking on the phone with a client or researching information for a project. Time tickets recorded can be used to pay employees and to bill customers.
There are two methods for entering time tickets. You can enter single daily time tickets on the Time Tickets window, or you can enter several time tickets at once using a weekly time sheet.
To enter time tickets, select New Time Ticket from the Time & Expense Tickets icon.
Time Tickets Window
The Time Tickets window is used to enter information on tasks for customers, tasks for jobs, or administrative tasks. Each tab is described below. Fields of interest are described below:
Advanced Study Guide for Sage 50 – US Edition Lesson 6 – Setting Up and Using Time and Billing
Employee/Vendor: Select either Employee or Vendor, and then enter the ID of the employee or vendor who is performing this activity.
Has this ticket been applied to an invoice?: This field is read-only and indicates if the ticket has been applied to a customer invoice. After the ticket has been applied to a sales invoice, you cannot apply the ticket again.
TIP: If you delete an invoice created from time or expense tickets, all time and expense tickets applied to the invoice are no longer marked as applied to an invoice. You can then apply these tickets to a new sales invoice.
To be applied: Select Customer Invoice, Job, or Administrative Task from the drop-down list. If you select Customer Invoice or Job, enter the ID of the customer or job for whom the activity was performed. Customer and job time tickets are available in Sales/Invoicing. Administrative time tickets are non-billable and are only used for tracking employee time.
Enter Time/Calculate Time: Select Enter Time to enter the length of time for the ticket. Select Calculate Time to enter a start and end time, as well as a break time. Using this option, you track the actual hours. If you want to time the activity, such as a phone call, click Start Timer.
Lesson 6 – Setting Up and Using Time and Billing Sage 50 Accounting 2014
• Billable means the ticket is available for billing Sales Invoicing.
• No Charge means it can show up in Sales Invoicing but at a zero dollar amount.
• Non-Billable means it does not show up in Sales Invoicing at all.
• Hold means the ticket will not be available to apply to customer invoices until the ticket's status is changed to either Billable or No Charge.
Billing Type: Select the kind of billing the time ticket uses. Each affects the billing rate and billing amount in a different manner. This field is not available when recording administrative tickets.
• Select Employee Rate if the ticket is recording employee time. The billing rate set up for the employee in Maintain Employees/Sales Reps will be used when calculating the billing amount. Note that billing rate is not the employee’s hourly or salary rate. It is recorded in the Rate Used to Bill Customer field on the Pay Info tab.
• Select Activity Rate to use the billing rate set up in Maintain Inventory Items for the activity item used for the time ticket. Activity items can have several billing rates and the customer's default pricing level may determine which billing rate to initially use. You can choose any of the billing rates established if the default pricing level is not what you want.
• Selecting Override Rate allows you to enter a desired billing rate, overriding the employee's established billing rate or one of the activity item's multiple billing rates set up in inventory.
• Enter a Flat Fee if you want to ignore the duration of the time ticket and charge a single fee for the activity performed. The billing rate field is not available when selecting this option. Enter the desired amount to charge for this activity in the Billing Amount field. If you choose this option, the duration will still be available for reporting purposes and payroll entry (provided the employee is set up to be paid based on time ticket hours). Billing amounts (flat fees) must be zero or greater before you can save time tickets.
Billing Rate: Enter or select the rate for the time ticket. For time tickets using the Employee Rate or Activity Rate, this value is multiplied by the Unit Duration to calculate the Billing Amount. For time tickets using an Override Rate, you must enter a billing rate in this field. This field is not available if you selected Flat Fee as the Billing Type.
Has this ticket been applied to Payroll?: Indicates whether the time ticket has been applied to one or more of the employee’s paychecks. This box is selected automatically when a paycheck that uses the time ticket is entered
Advanced Study Guide for Sage 50 – US Edition Lesson 6 – Setting Up and Using Time and Billing
The Weekly timesheet allows you to enter tickets for an entire week on a single window. Many of the fields described on the Time Tickets window are found on the Weekly Timesheet window. The fields that are exclusive to the Weekly Timesheet window are listed below:
Daily Columns: Enter the time duration for the activity in the appropriate date column. Each duration entered represents a single daily time ticket. Enter daily duration amounts in decimal format. For example, 4 hours and 30 minutes would be entered as 4.5.
Lesson 6 – Setting Up and Using Time and Billing Sage 50 Accounting 2014
Using Time Tickets to Pay Employees Employees assigned to the Pay Method of Hourly--Time Ticket Hours can be paid based on the time tickets recorded. When time ticket employees are selected in either the Payroll Entry window or the Select Employees to Pay window, their hours are calculated based on the time tickets recorded.
TIP: Both the Pay Frequency of the employee and the Pay Period End date used in Payroll Entry determine which time ticket hours the employee is paid for.
If the time tickets are associated with jobs, the hours are automatically allocated to the jobs.
Advanced Study Guide for Sage 50 – US Edition Lesson 6 – Setting Up and Using Time and Billing
Expense tickets record customer-related expenses. Employees or vendors can record expenses performing tasks such as making copies or sending faxes. Expense tickets can be used to bill customers and to track reimbursable employee expenses.
To enter time tickets, select New Expense Ticket from the Time & Expense Tickets icon.
Expense Tickets Window The Expense Tickets window is used to enter information on customer-related costs. Fields of interest are described below:
To be applied: Select Customer Invoice, Job, or Administrative Task from the drop-down list. If you select Customer Invoice or Job, enter the ID of the customer or job for whom the expense was incurred. Customer and job time tickets are available in Sales/Invoicing. Administrative time tickets are non-billable and are only used for reporting purposes.
Reimbursable to employee: Select this check box if the expense needs to be paid back to an employee. Expense tickets selected as reimbursable to the employee can be viewed in the Reimbursable to Employee Expense report.
Lesson 6 – Setting Up and Using Time and Billing Sage 50 Accounting 2014
Billing status: Select from the following choices:
- Billable: Makes the ticket available in Sales/Invoicing for customer billing.
- Non-Billable: Makes the ticket unavailable in Sales/Invoicing. When entering an administrative ticket, this status is automatically applied.
- Hold: Makes the ticket unavailable in Sales/Invoicing. At a later time, the status can be changed by editing the ticket.
- No Charge: Forces the Billing Amount to zero and makes the ticket available in Sales/Invoicing. This status can be used to let the customer know that work was performed at no charge.
Advanced Study Guide for Sage 50 – US Edition Lesson 6 – Setting Up and Using Time and Billing
Time and expense tickets can be applied to sales invoices to bill customers for time spent or expenses incurred. You can write up time and expense items on the sales invoice, allowing you flexibility in billing amounts. Multiple time tickets can be consolidated into a single group that would appear as one line item on the invoice. You can also consolidate expense ticket items into a single group.
Only those tickets that have a billing status of Billable or No Charge are available to apply to sales invoices. You cannot apply Administrative tickets to sales invoices since they are not associated with a customer or job. Once time and expense tickets are applied to a sales invoice, the items are marked as used and cannot be applied to a second invoice.
Apply Tickets/Expenses Window
To apply tickets to an invoice, click the Apply Tickets/Expenses arrow button on the Sales/Invoicing window. Tabs are available for Time Tickets, Expense Tickets, and Reimbursable Expenses. You can use buttons in the toolbar to write-up tickets, mark all for billing, or mark tickets as non-billable. The Time Tickets tab, Expense Tickets tab, and fields of interest are described below:
Lesson 6 – Setting Up and Using Time and Billing Sage 50 Accounting 2014
Use Ticket Description for Invoicing: Select this option to display information entered in the Ticket Description for Invoicing box for the selected ticket(s) on the customer invoice.
Use Item Description for Invoicing: Select this option to display the item description on the customer invoice.
NOTE: These options are available only if No Consolidation is selected in the Consolidate By drop-down list.
Consolidate by: Select the method of consolidation to use for the tickets selected. Tickets are summarized on the invoice based on the consolidation method.
Invoice Amount: Displays the amount that is billed for the ticket on the customer invoice. If necessary, enter a new amount or use the Write Up button to calculate new invoice amounts for the tickets selected.
Use: Select this check box to apply this ticket to the invoice.
No Bill: Select this check box to change the ticket’s Billing Status to non-billable. The ticket does not appear on the customer invoice and is not available for billing in the future.
Advanced Study Guide for Sage 50 – US Edition Lesson 6 – Setting Up and Using Time and Billing
Time and Expense Reports Time and expense reports provide information related to tickets entered, as well as tickets used in Payroll and Accounts Receivable. To preview or print these reports, select Time/Expense from the Reports & Forms menu.
Report Descriptions Aged Tickets: This report shows the aging status of time and expense tickets for specific customers that have not been billed. The report can be summarized by billing status, item, or job/phase to show how the unused billable tickets are aged in each of those categories. It is useful for determining which tickets need to be billed to customers.
Employee Time: A listing of time tickets recorded by employee. This report can be summarized by customer, item, billing status, or job to aid in analysis. It is useful for tracking how employee time is being spent.
Expense Ticket Register: Lists each recorded expense ticket. This report is useful for verifying that all expense tickets have been entered and billed.
Lesson 6 – Setting Up and Using Time and Billing Sage 50 Accounting 2014
Payroll Time Sheet: A list of time tickets recorded by employees for a specified pay period. This report is useful if you pay employees based on time tickets and you want to preview payroll information before paychecks are entered. You can verify that employee time sheets are accurate, see the number of hours an employee worked, and see which tickets the employee has been paid for.
Reimbursable Employee Expense: This report lists expense tickets selected as reimbursable to employees. It is useful for preparing expense checks.
Ticket Listing by Customer: Lists work performed and billing amounts by customer. Using this report, you can evaluate customer revenue, see which activity or charge item you provide most for your customers, and identify your customers’ needs for the future.
Tickets Recorded By: Lists tickets recorded by each employee or for each vendor, including the ticket number, ticket date, type of ticket, item ID, and billing amount. By viewing this report, you can see what the employee or vendor has recorded. This report helps track tickets for each employee or vendor.
Tickets Used in Invoicing: A list of tickets that have been billed to customers. This report is useful for answering customer questions about a bill. You can enter the customer ID and invoice number on the filter window to display all tickets applied to the invoice that fall within a specific date range.
Tickets by Item ID: Lists each activity and charge item by ID. This report can be used to see how your business is doing based on each item, to determine whether you need to charge more for an activity or charge item based on its use, to estimate the duration of activity items, and to determine which items produce the most revenue.
Time Ticket Register: Tracks time spent on work related to jobs, customers, or administrative tasks. This report lists all time tickets and the billing status of each. This information is useful for verifying that all time tickets have been entered and billed.
Advanced Study Guide for Sage 50 – US Edition Lesson 6 – Setting Up and Using Time and Billing
Exercise 6.2 – Adding Activity Items Goal In this exercise, you will learn how to add activity items.
Scenario The employees paid based on time ticket hours will work on designing and installing water management systems, as well as handling related administrative tasks such as permit procurement. These tasks will be set up as activity items so that time tickets can track the time they work.
1. In the Inventory and Services navigation area, click the Inventory Items icon, and select New Inventory Item.
2. Enter the following information for each activity. Remember to click Save after each item:
NOTE: For the price field, you will initially see Billing Rate. Click the drop-down arrow to
Exercise 6.4 – Entering Time Tickets Using the Daily Tab Goal In this exercise, you will learn how to enter time tickets using the daily tab.
Scenario Bert Shaw was hired on March 18th and is paid based on the exact hours worked. His work for the week will be entered using time tickets. These time tickets will be used to pay Bert and to bill customers for the work he has performed.
1. In the Employees & Payroll navigation area, select New Time Ticket from the Time and Expense Tickets icon.
2. From the Employee ID lookup list, select BSHAW.
3. From the To be applied drop-down list, choose To a Customer Invoice.
4. Enter TRENT for the customer.
5. Choose LAND-1800 from the Activity Item lookup list.
6. Enter 03/18/14 in the Ticket date field.
7. Choose Calculate Time with a Start time of 8:30 AM.
8. Enter an End time of 4:00 PM, and a Break of 1:00.
9. After you have entered the times, press ENTER or TAB to move to the next field. Notice the Duration is 6:30, while the Unit duration displays the whole number of 6.50.
10. Leave Pay Level set to Regular, and do not check Has this ticket been applied to Payroll.
11. Leave the Billing status set to Billable.
12. The customer will be billed the regular activity rate. Select a Billing type of Activity Rate.
13. Use the Billing rate drop-down list to select Price Level 1. Press ENTER or TAB to move to the next field. The Billing amount should be $292.50.
Advanced Study Guide for Sage 50 – US Edition Lesson 6 – Setting Up and Using Time and Billing
14. Click Save to record the time ticket, and then click New.
15. Using these steps as a guide, enter the next time tickets. Remember to click Save when finished. The Unit duration and Billing amount are listed for reference only:
Lesson 6 – Setting Up and Using Time and Billing Sage 50 Accounting 2014
Exercise 6.5 – Entering Time Tickets Using the Weekly Timesheet Goal In this exercise, you will learn how to enter time tickets using the weekly timesheet.
Scenario Rick Mallard was hired on March 18th and is paid based on the exact hours worked. His work for the week will be entered using time tickets. These time tickets will be used to pay Rick and to bill customers for the work he has performed.
1. In the Employees & Payroll navigation area, select New Weekly Timesheet from the Time and Expense Tickets icon.
2. Enter RMALLARD for the Employee ID.
3. Enter 03/18/14 in the Week including field.
4. Each activity will appear on a line on the Weekly Timesheet. Each duration for the activity will appear in a date column. In the Customer/Job/Administrative field, select Customer and press TAB to move to the next field.
5. Enter a Customer ID of TRENT.
6. Click in the Activity Item field on the first line. Enter LAND-1820.
7. Set Billing Status to No Charge.
8. Change Billing Type to Activity Rate.
Billing Rate should show 0.00.
9. Leave Pay Level set to Regular.
10. Enter a duration of 4.50 in the 3/18 column on the first line.
11. Using these steps as a guide, enter the remaining time tickets for Rick on the second line of the timesheet. The Totals field is listed for reference only:
Customer/Job/Administrative Customer
Customer/Job ID TRENT
Activity Item LAND-1810
Billing Status Billable
Lesson 6 – Setting Up and Using Time and Billing Sage 50 Accounting 2014
Exercise 6.6 – Using Time Ticket Hours in Payroll Goal In this exercise, you will learn how to pay employees using time ticket information.
Scenario Bert and Rick need to be paid on Monday, March 25th for the work they have performed the previous week. The time tickets entered for each will provide the exact hours worked for the paychecks.
1. Select Enter Payroll for One Employee from the Pay Employees icon.
2. Choose RMALLARD from the Employee ID lookup list.
3. Enter a Check Number of 1226.
4. Change the Date and the Pay Period End to 03/21/14.
5. Ensure the Cash Account selected is 10300-00.
Regular hours should equal 28.00, and Gross Pay should equal 364.00.
6. Click Save.
7. Choose BSHAW from the Employee ID lookup list.
Lesson 6 – Setting Up and Using Time and Billing Sage 50 Accounting 2014
Exercise 6.8 – Applying Time and Expense Tickets to Customer Invoices
Goal In this exercise, you will learn how to apply time and expense tickets to customer invoices.
Scenario Time and expense tickets need to be billed to a few customers. Each ticket will be applied to a sales invoice, which will be sent to the customer.
1. In the Customers & Sales navigation area, select New Sales Invoice from the Sales Invoices icon.
2. From the Customer ID lookup list, select TRENT.
3. Enter a Date of 03/29/14.
4. Enter Invoice # of 10350.
5. Click the Apply Tickets/Expenses link located in the lower-left corner of the Sales/Invoicing window.
6. A Ticket Description for Invoicing was not entered for the time tickets, so choose Use Item Description for Invoicing.
7. Select Activity Item from the Consolidate by: dropdown list.
8. Select the Use check box for all listed times tickets. Since the Billing Rate was used for the tickets, there is no need to write up the amounts.
9. Select the Expense Tickets tab.
Advanced Study Guide for Sage 50 – US Edition Lesson 6 – Setting Up and Using Time and Billing
Jobs are used to track profitability for a wide variety of processes or business functions. In this lesson, you will learn how to:
• Establish default information for Jobs
• Add new Jobs, Phases and Cost Codes
• Enter beginning balances for Jobs
• Use Jobs throughout Sage 50 Accounting
• Run reports on Jobs
Exercises in this Lesson
Exercise 7.1 – Setting up a Job .......................................................................................................... 7-51
Exercise 7.2 – Setting up Phases ...................................................................................................... 7-52 Exercise 7.3 – Setting up Cost Codes ................................................................................................ 7-54
Exercise 7.4 – Creating a Job Estimate ............................................................................................. 7-55
Exercise 7.5 – Copying From an Existing Job.................................................................................... 7-57
Exercise 7.6 – Applying Purchases to a Job ...................................................................................... 7-59
Exercise 7.7 – Applying Time Tickets to a Job................................................................................... 7-60
Exercise 7.8 – Applying Payroll Hours to a Job ................................................................................. 7-63 Exercise 7.9 – Applying Inventory Cost to a Job ................................................................................ 7-65
Exercise 7.10 – Posting Overhead to a Job ....................................................................................... 7-66
Exercise 7.11 – Entering a Contract Bill as a Sales Order ................................................................. 7-67
Exercise 7.12 – Billing a Contracted Job ............................................................................................ 7-68
Exercise 7.13 – Billing a Cost Plus Job .............................................................................................. 7-69 Exercise 7.14 – Applying Sales to a Job ............................................................................................ 7-71
Lesson 7 – Setting Up and Using Job Cost Sage 50 Accounting 2014
Introduction The Jobs navigation center provides easy access to jobs and all transactions involving jobs, such as change orders, quotes, sales invoices, purchase orders, and time and expense tickets.
QUANTUM: The Jobs navigation center is available in Sage 50 Quantum Accounting only.
Advanced Study Guide for Sage 50 – US Edition Lesson 7 – Setting Up and Using Job Cost
About Jobs Jobs can be set up to track profitability for a wide variety of processes or business functions, no matter the type of business. While many associate jobs with construction companies, you can use jobs to help you track profitability on countless tasks. Here are a few examples:
• A used car dealer purchases automobiles, then needs to track the expense incurred as the vehicle is cleaned and repaired for sale. The car can be set up as a job. The purchase of the car is then applied to the job. As expenses are incurred, they are applied to the job as well. When the car is ready for sale, the total of the applied expense is the actual cost of the car. When the car is sold, the revenue can be applied to the job as well. This gives the dealer the ability to track which cars are more profitable in order to make better buying decisions in the future.
• A law firm may need to track many jobs for a single customer. So, if separate billing is required for different services provided, Sage 50 Accounting makes it easier to track time for billing purposes. Simply set up each service as a job for the customer. When applying reimbursable expenses in sales invoicing, you can sort and consolidate by job, phase, and cost code. As an example, a large corporation might employ a law firm. The corporation has many locations that use the law firm's services and wants to track expenses by location. Therefore, they insist on being billed by location. If the law firm sets up each location as a job, with the corporation as the customer, they would then be able to apply reimbursable expenses in sales invoicing using the Sort and Use features to easily bill for a single job.
• A non-profit agency can set up jobs to track the money received and expensed from grants. This can be especially helpful when all the money is handled in one bank account. Each grant can be set up as a job with budget figures entered as estimates of the job. As money is spent, the transactions are applied to the job. This makes it easy to get reports that show both the estimated expense (budget), and the actual expense (money spent) for each grant.
Advanced Study Guide for Sage 50 – US Edition Lesson 7 – Setting Up and Using Job Cost
Entering Job Defaults To access the default information window for jobs, select Set Up Job Defaults from the Jobs icon on the Customers & Sales navigation center.
Job Defaults Window Depending on which edition of Sage 50 Accounting you are using, the Job Defaults window is used to define transaction warning messages, set up default job statuses, enter billing and retainage options, and customize field labels used by jobs.
General If you assign the majority of your transaction line items to jobs, you can choose to have Sage 50 warn you when you do not assign a job, phase, or cost code at the Job ID field of a purchase or sales transaction line.
Statuses Job statuses provide you with a method of tracking the progress of a job from its inception through its completion. You can use the default statuses provided, or you can modify the existing statuses or add new ones as needed. Statuses are applied to the job record on the Maintain Jobs window. They can be tracked on many job reports and on Quantum’s Job Management navigation area.
Lesson 7 – Setting Up and Using Job Cost Sage 50 Accounting 2014
Progress Billing and Retainage are available in Sage 50 Construction Accounting and Sage 50
Quantum Accounting.
On the Billing and Retainage tab, you can enter a default billing method and default retainage percentage for your jobs, as well as the accounts to which retainage amounts are applied when you enter sales and purchase invoices.
Advanced Study Guide for Sage 50 – US Edition Lesson 7 – Setting Up and Using Job Cost
NOTE: You must have created a general ledger account with Account Type of either Receivables Retainage or Payables Retainage before the Retainage options appear on this tab. Also, you must have entered an account number in the fields before Sage 50 allows you to apply retainage when you enter sales or purchase invoices.
Labor Burden Tab
Labor Burden is available in Sage 50 Construction Accounting and Sage 50 Quantum Accounting.
If you apply labor burden during payroll entry, you enter a default labor burden amount for your jobs here. In addition, you can enter the Labor Burden Cost of Sales and Applied Labor Burden general ledger accounts that are used during labor burden distribution.
Lesson 7 – Setting Up and Using Job Cost Sage 50 Accounting 2014
Adding Jobs After entering the default information for jobs, the next step is to enter jobs, phases, and cost codes. To add jobs, click the Job icon, and select New Job.
Maintain Jobs Window The Maintain Jobs window is used to enter, change, and store information about your jobs. Each tab is described below:
Job ID: Identifies the job in lookup lists, transactions, and reports.
Description: Enter a brief description for the job. This description displays in lookup lists and on reports.
Use phases to track job in more detail: Check this box if the job is divided into phases.
COMPLETE: Phases are available in Sage 50 Complete Accounting and higher.
Inactive: Check this box to make the job inactive. Inactive records are deleted when the purge utility is run, if all transactions related to the record have been purged. Inactive
Lesson 7 – Setting Up and Using Job Cost Sage 50 Accounting 2014
records can be used in transactions, but a message appears, reminding you of the inactive status.
Start Date: Enter the date work on the job was started.
Projected End Date: Enter the job’s estimated end date. This field updates automatically if the projected end date is modified on a Change Order.
Actual End Date: When the job is finished, enter the actual end date at this field. Only when a date is entered here is the job labeled Complete in the Progress column on job reports.
Job Status: This dropdown allows you to assign a specific status to your job. For example, the default statuses allow you to define a job as In Progress, Pending, Completed, or On Hold. You can create more statuses by clicking the Customize Job Statuses hyperlink located underneath the dropdown field. In addition to viewing the status of the job in the Job Navigation area, you can also modify many of your jobs reports to include job status as well.
General Tab Jobs are entered and maintained on the General tab. From this window, jobs are assigned to customers, job starting and ending dates are selected, and beginning balances are entered. Fields of interest are described below:
For Customer: Select the ID of the customer to whom the job is assigned. This is a required field if you want to use the Apply Reimbursable Expenses feature.
Job Type: This case-sensitive field can be used to filter records for reporting purposes.
• The following fields are available in Sage 50 Construction Accounting and Sage 50 Quantum
Accounting, and are discussed later in this lesson.
Billing Method
Retainage Percent
Labor Burden Percent
Estimated Expenses & Revenue Tab Select the Estimated Expenses & Revenue tab to enter estimated expenses and revenues for a job. Comparing actual costs and revenues with estimated costs and revenues gives you the ability to create a more accurate estimate for the next job. Job estimates should be entered after the jobs, phases, and cost codes are entered. This tab is explained in more detail later in this chapter.
Advanced Study Guide for Sage 50 – US Edition Lesson 7 – Setting Up and Using Job Cost
Notes Tab Use this tab to keep track of notes related to the job. Up to 2000 characters of note information can be entered for each job record. These notes can be viewed on Job list reports.
Lesson 7 – Setting Up and Using Job Cost Sage 50 Accounting 2014
Adding Phases Phases are used to divide jobs into segments. A phase can be defined as a specific period of time, a specific type of activity, or any other division that breaks a job into clearly defined segments. Phases that do not use cost codes categorize expenses into one of five cost types.
To add phases, click the Jobs button in the Customers & Sales navigation center, and select New Phase.
COMPLETE: Phases are available in Sage 50 Complete Accounting and higher.
Maintain Phases Window The Maintain Phases window is used to enter, change, and store information about the phases of your jobs. Fields of interest are described below:
This phase uses the cost type: Select this option if the phase is not divided into cost codes. If you do not use cost codes with this phase, you must select a Cost Type for the phase. If you select this option, choose a Cost Type from the drop-down list.
This phase uses cost codes: Select this option if the phase is divided into cost codes.
Advanced Study Guide for Sage 50 – US Edition Lesson 7 – Setting Up and Using Job Cost
Adding Cost Codes Cost codes identify a specific cost within a phase. Using cost codes provides a greater level of detail for tracking job expenses and revenues. Each cost code must have one of the five cost types associated with it. It is best to start with a few, general cost codes and add more when new types of expenses are incurred. To add cost codes, click the Jobs button in the Customers & Sales navigation center, and select New Cost Code.
COMPLETE: Cost Codes are available in Sage 50 Complete Accounting and higher.
Maintain Cost Codes Window The Maintain Cost Codes window is used to enter, change, and store information about the cost codes that make up each phase.
Lesson 7 – Setting Up and Using Job Cost Sage 50 Accounting 2014
Entering Job Beginning Balances Beginning balances are assigned to jobs using the Job Beginning Balances button on the General tab. Beginning balances are job-related expenses or revenues that have been recognized prior to using Sage 50 Accounting. Job beginning balances do not affect the General Ledger. These beginning balances should be entered after the jobs, phases, and cost codes are entered.
If you entered beginning balances in Accounts Payable or Accounts Receivable and the transactions were applied to jobs, the beginning balances must also be entered in job cost. If you entered transactions that should have been applied to job cost but were not, you can also enter them on the Job Beginning Balances window.
Job Beginning Balances Window The Job Beginning Balances window is used to enter information regarding job expenses and revenue you have not entered in Sage 50. Each tab is described below:
Job Balances Tab This tab lists the sum of the expense and revenue beginning balances. If you want to adjust beginning balances for a job, double-click the job.
Job Entries for: Tab This tab is used to enter the beginning balances for the job, phases, and cost codes. Fields of interest are described below:
Advanced Study Guide for Sage 50 – US Edition Lesson 7 – Setting Up and Using Job Cost
Phase ID: If the job uses phases, select the phase associated with the job, and enter the beginning balance. If a job does not use phases, this field is not available.
Cost Code ID: If the job uses cost codes, select the cost code associated with the phase, and enter the beginning balance. If a phase does not use cost codes, this field is not available.
TIP: You cannot enter a beginning balance for both expense and revenue on the same line.
Lesson 7 – Setting Up and Using Job Cost Sage 50 Accounting 2014
Entering Job Estimates The Estimated Expenses and Revenue tab on the Maintain Jobs window is used to enter estimated expenses and revenues for a particular job. A job estimate is an approximate cost for a job or part of a job. As a job progresses, reports can be run that compare estimated figures to actual figures. Job estimates should be entered after the jobs, phases, and cost codes are entered.
Estimated Expenses and Revenue Tab Select the Estimated Expenses and Revenue tab to enter estimated expenses and revenues for a job. Comparing actual costs and revenues with estimated costs and revenues gives you the ability to create a more accurate estimate for the next job. If the Use phases to track job in more detail box is unchecked, only two fields appear, allowing you to enter expenses and revenues for the job.
If Use phases to track job in more detail is checked, the following fields appear:
Advanced Study Guide for Sage 50 – US Edition Lesson 7 – Setting Up and Using Job Cost
Selecting a Job When assigning a job ID to a transaction line item, the cost or expense is applied to either the job, phase code, or cost code. The drop-down list below appears whenever a transaction line item is applied to a job.
[+] signs represent jobs that use phases and phases that use cost codes. Click once on the [+] sign to expand the list of phases for the job.
Click the [+] sign located to the left of a phase to display the cost codes for the phase.
Click once on a job, phase, or cost code to assign it to the transaction line item.
TIP: You can double-click on the Job ID field to drill down to the Maintain, Jobs window. This is
useful if you need to modify a job record to be assigned to a transaction.
Lesson 7 – Setting Up and Using Job Cost Sage 50 Accounting 2014
Using Jobs with Accounts Payable Purchases of items not related to inventory--such as sub-contract labor, non-inventory items, or other job-related expenses--can be applied to jobs in Accounts Payable through Purchases/Receive Inventory on the Apply to Purchases tab. When an invoice is posted, the cost of each job-related line item is assigned to the job. These costs can be billed to a customer through Sales/Invoicing.
To apply a purchase to a job, enter the line items as you would for any purchase. Then, select the job, phase, or cost code in the Job field for each line that should be applied to a job. If necessary, each line can use a different job, phase, or cost code.
Accounting Behind the Screens The purchase of a stock item is intended to increase your overall assets, and is not considered an expense until it is recorded as a cost of Goods Sold when the job is billed. Because purchases assigned to jobs are reported as actual expenses, it would not be appropriate to assign a job to a stock item when it is being purchased.
If you need to assign the cost of the item to the job before the job is billed, create an inventory adjustment for the item. When decreasing the quantity of an item using the Inventory Adjustments window, the adjustment can then be assigned to a job as an actual expense.
Advanced Study Guide for Sage 50 – US Edition Lesson 7 – Setting Up and Using Job Cost
Using Jobs with Time Tickets Time and expense tickets can be assigned to jobs. Then, when the time ticket is used in Payroll Entry, the expense is applied to the job. When the time or expense ticket is billed in Sales/Invoicing, the revenue amount is applied to the job. Remember that the ticket must be used in Payroll Entry or in Sales/Invoicing to be recognized by the job.
Lesson 7 – Setting Up and Using Job Cost Sage 50 Accounting 2014
Using Jobs with Payroll Payroll hours and rates can be allocated to a job at the time paychecks are entered. Labor costs can be applied to jobs through Select for Payroll Entry and Payroll Entry on the Tasks menu. In either window, click the Jobs button on the toolbar to bring up the Labor Distribution to Jobs window.
Labor Distribution to Jobs Window This window is used to assign payroll hours to jobs for hourly employees or dollar amounts to jobs for salaried employees. When a paycheck is posted, the wage expense is applied to each job entered, and a reimbursable expense is created. This reimbursable expense can be applied to a customer invoice in Sales/Invoicing.
Advanced Study Guide for Sage 50 – US Edition Lesson 7 – Setting Up and Using Job Cost
Using Jobs with Inventory Items Inventory items can be distributed directly to a job through Inventory Adjustments. When inventory stock is to be used on a job, it must be removed from inventory. This can be done with a sales invoice; but in most instances, the customer is not billed for each item used on a job. Then, an inventory adjustment can be made to reduce the stock and apply the cost to the job. The cost applied to the job is set by the item’s costing method.
WARNING: Inventory Adjustments do not appear on the Apply Expenses window. If you are using Cost Plus Billing, you must factor in the costs for Inventory Adjustment transactions.
To distribute an inventory item cost directly to a job, use the Inventory Adjustments window as you would for any other adjustment. Use the drop-down list to select the job, phase, and cost code for the item being adjusted. The cost of the item being adjusted is applied to the job as an expense.
Lesson 7 – Setting Up and Using Job Cost Sage 50 Accounting 2014
Using Jobs with General Journal Entries Certain transactions pertaining to Job Cost are entered and distributed to a job through the General Journal Entry window. To apply a general journal entry to a job, enter the transaction on the General Journal Entry window, and use the drop-down list to select the job, phase, and cost code for each line that should be applied to a job.
Use the Debit side of an entry to apply an expense to a job. Applying a debit to a job not only applies the expense to the job but also creates a reimbursable expense that can be applied to a customer invoice.
As seen in the previous sections of this chapter, most expenses can be applied directly to your jobs as the expense transaction is entered. Overhead expenses you plan to apply to jobs are handled in a different way. The original transactions are not applied to jobs because these expenses are not associated with any one job. Instead, a General Journal entry is used to distribute the overhead to the jobs.
To apply overhead to a job without overstating the expense, post the debit to the expense account, and assign the appropriate job, phase, and cost code. Then, post the same amount as a credit to the expense account without assigning a job, phase, and cost code. This ensures that you have not affected the expense account balance but have applied the overhead to the job. For example, if you have posted transactions to recognize the following overhead expenses, you would have a total of $2700 that should be applied to your jobs. When entering the expense transaction, you could apply part to each job, but that could be a difficult and time-consuming task.
Telephone $675.00
Electricity $1225.00
Gas $495.00
Miscellaneous Office $305.00
Total Overhead $2700.00
Instead, enter one General Journal transaction to apply the expense to your jobs. To do this without overstating your expenses, make the entry as shown below.
Advanced Study Guide for Sage 50 – US Edition Lesson 7 – Setting Up and Using Job Cost
Using Jobs with Accounts Receivable You can be confident of accuracy when using Sage 50 Accounting to bill your customers for the services you provide. There are several billing methods you can use depending on the level of tracking you need:
• Contract Billing: When billing a customer on a contract basis, begin by entering a sales order at the time the contract is agreed upon. A sales invoice can then be applied to the sales order as necessary. The sales order remains open until the full contract amount has been billed. This reduces the possibility of under billing the customer.
• Cost Plus Billing: Using this method, you bill the customer by writing up expenses that have been applied to the job. This is done using the Apply Tickets/Expenses option found in Sales/Invoicing. If this is the only method used to bill a customer, you can be certain that the customer is billed for all expenses incurred and that nothing that was not expensed to the job is billed.
• Cost Process Billing: You can enter invoices and apply individual line items to jobs as necessary. This method can be used to apply both revenue and expense to a job at the same time. If you track expenses manually, this method can simplify data entry. Invoicing stock and assembly items applies both the revenue and cost of sales amount to the job. If cost is being tracked for non-stock, labor, or service items, both the revenue and cost of sales amount are applied to the job when the sales invoice is posted.
WARNING: Remember that when an item not tracked in inventory is applied to a job in invoicing or receipts, only the revenue is applied to the job.
Contract Billing To properly track the original contract amount for a job, you should start by entering a sales order. It should include the total contract amount along with the stages of completion. Entering this data helps you track the terms of the contract.
Entering a Contract as a Sales Order The following example illustrates a sales order entered for a five-thousand-dollar contract. A Quantity of 1.00 is entered so that the percentage billed can be tracked. As the customer is invoiced, the amount remaining on the sales order is decreased to indicate the percentage that has not been billed.
TIP: You can also use Proposals for this routine, when using Sage 50 Premium Accounting.
Remember that the proposal must be marked as accepted before you are able to bill in Sales Invoicing.
In the example, the stages of completion are also noted. The job is to be billed at a rate of 30% when the Design phase is complete and 30% when the Carpentry phase is complete. The remainder is to be billed when the final phases have been completed.
Advanced Study Guide for Sage 50 – US Edition Lesson 7 – Setting Up and Using Job Cost
Entering a Contract as a Sales Invoice When you have reached a completion stage in the job, enter a sales invoice, and apply it to the contract sales order. The amount in the Remaining field indicates the percentage that has not been billed. Enter the percentage to be billed in the Shipped field, and Sage 50 calculates the amount. This makes it easier to track what has or has not been billed for each contract.
Lesson 7 – Setting Up and Using Job Cost Sage 50 Accounting 2014
In the following example, you can see that the first phase has already been billed. This is indicated by the 0.70 in the Remaining field. Now that the Carpentry phase is complete, another 30% is billed. This is done by entering 0.30 in the Shipped field. Sage 50 calculates the Amount field by multiplying the original contract amount by 0.30.
NOTE: If you use this method of billing, you need to create an appropriate contract billing sales
invoice format. For more information on modifying and creating forms, see the Sage 50– US Edition Forms and Financials Study Guide.
Cost Plus Billing To bill your customer based on all expenses incurred plus an amount or percentage, use reimbursable expenses in Sales/Invoicing. To take advantage of the reimbursable expense feature, you must designate the appropriate customer when setting up the job. Then, as you apply expenses to a job, reimbursable expenses are created for the assigned customer.
All expenses applied to a job on purchases, payments, general journal entries, and payroll entries appear on the Reimbursable Expenses tab on the Apply Tickets/Expenses window in Sales/Invoicing.
You have various options for both writing up and consolidating expenses while processing reimbursable expenses on a sales invoice. For example, you can consolidate all expenses by phase and cost code and invoice the customer for each phase and cost code rather than each individual expense. You can also choose to write up by various percentages or amounts.
Advanced Study Guide for Sage 50 – US Edition Lesson 7 – Setting Up and Using Job Cost
Time tickets applied to jobs appear on the Time Tickets tab. Remember the amounts shown on this tab are the billing amounts indicated on the tickets, not the actual expense. Therefore, you would normally choose to not write up these transactions.
If expense tickets have been entered and applied to a job, they can be found on the Expense Tickets tab. However, because of the possibility of double billing, we recommend using purchase or payment transactions to apply expenses instead.
Applying Reimbursable Expenses To access reimbursable expenses, select Sales/Invoicing from the Customers & Sales navigation center. Enter the customer, click the Apply Tickets/Expenses arrow button, and select the Reimbursable Expenses tab. The Reimbursable Expenses tab is described below:
• Sort List By: Select the sort order for the reimbursable expenses listed. You can sort by either Job or Date, which can be useful when consolidating expenses.
• Consolidate By: Select the transaction consolidation method to be used from this list.
NOTE: Consolidating expenses created a blank Description field on the invoice. If No Consolidation is chosen, the Description field on the invoice matches the Description field shown on this window.
• Invoice Amt: Displays the amount to be used on the invoice. Enter a new amount if necessary.
Applying Time Tickets Applying time tickets to invoices is very similar to applying reimbursable expenses. The most important difference is that the Invoice Amount is not the expense but the billing amount entered on the ticket. Thus, the write up feature is not normally used. Another difference is that
Lesson 7 – Setting Up and Using Job Cost Sage 50 Accounting 2014
Cost Process Billing This method of billing allows you to post both the revenue and expense to the job at the same time. If you track your job-specific expenses manually and prefer to enter them after the fact, this is the most efficient method to use.
WARNING: Remember that when a non-inventory line item in invoicing or receipts is distributed to a job, only the revenue is applied to the job. Also, you must track cost of sales for non-stock, labor, or service items for the expense to be applied to the job.
When a sale is posted, the sales price and the cost of each job-related line item is assigned to the job. If any expenses have been previously applied to the job, you can still use the Apply Reimbursable Expenses feature to write up the revenue amounts and include them on the same invoice.
• Enter the sale or invoice.
• In the Job field of the distribution section, use the lookup list to select the job, phase, and/or cost code for each line item to be applied to a job.
Lesson 7 – Setting Up and Using Job Cost Sage 50 Accounting 2014
Job Cost Reports Job Cost reports provide information related to amounts distributed to jobs on transactions. To preview or print these reports, select Jobs from the Reports & Forms menu.
Report Descriptions • Cost Code List: Lists descriptions and cost types of cost codes. It is used to ensure that
cost codes were set up correctly.
COMPLETE: The Cost Code List report is available in Sage 50 Complete Accounting and higher.
• Estimated Job Expenses: This report can be printed during the progress of a job to compare estimates with actual costs and expenses. To compare estimated with actual amounts at the end of a job, simply filter out active jobs.
• Estimated Job Revenue: Provides detailed information comparing revenue estimates to the actual revenues entered. You can run this report any time during a job to view estimated versus actual revenue and the difference.
• Job Costs by Type: Shows costs and number of units broken down by cost type for jobs. Use this report as a record of time spent for a given period.
COMPLETE: The Job Costs by Type report is available in Sage 50 Complete Accounting and
higher.
• Job Estimates: Shows job estimates created by using the Maintain Jobs window. You can print this report prior to creating quotes for your customers.
Advanced Study Guide for Sage 50 – US Edition Lesson 7 – Setting Up and Using Job Cost
• Job Ledger: Shows all transactions assigned to a job. It provides detail for expense and revenue transactions that affect a job for the selected date range. This report is useful for resolving questions regarding individual job activity.
• Job List: Lists job descriptions, dates the jobs began, and customer names. Useful in identifying that all necessary jobs have been set up.
• Job Master File List: Displays multiple lines of information about each job. This report is useful in ensuring that jobs were set up correctly. This information is also useful if you wish to export Sage 50 data for use in other applications.
• Job Profitability Report: Displays actual expenses versus revenue for a given job and calculates the profit or loss per job for a selected date range. This report is useful for identifying jobs with a high profit margin.
• Job Register: Shows transaction amounts per job and the account ID for the selected date range. It provides a simplified list of the job activity, which is useful for tracking transactions assigned to jobs.
• Phase List: Displays phase descriptions, cost types, and use of cost codes. This report can be used to ensure that phases were set up correctly.
Lesson 7 – Setting Up and Using Job Cost Sage 50 Accounting 2014
COMPLETE: The Phase List report is available in Sage 50 Complete Accounting and higher.
• Unbilled Job Expense: Lists transactions that have not been billed to the customer. This report is useful for identifying reimbursable expenses that need to be billed.
• Work In Progress: Sage 50 Construction and Quantum Accounting offer an additional Work In Progress report that can provide you with a key indication of a contractor’s financial position and is often used to obtain bonding for a job. Bond underwriters use this report to review jobs in-progress, determine profitability on completed jobs, and over/under job billings for current jobs.
Advanced Study Guide for Sage 50 – US Edition Lesson 7 – Setting Up and Using Job Cost
The following features are available in Sage 50 Construction Accounting and Sage 50 Quantum Accounting.
Sage 50 Construction Accounting and Sage 50 Quantum Accounting integrate all of the comprehensive accounting features found in Sage 50 Premium Accounting with specialized, construction industry-specific tools such as progress billing, retainage calculation, tracking insurance expiration dates for subcontractors, and job work in progress reports.
Progress Billing for Jobs If you are a construction contractor who performs a job over a period of time, you may typically require partial payments (also known as progress payments or draws) during the completion of the job. This is rather than waiting to receive the entire payment at the end of the contract. These progress payments allow you better cash flow management to complete the job.
Sage 50’s Progress Billing for Jobs feature provides you with a variety of methods to bill for payment after partial completion of a job.
Lesson 7 – Setting Up and Using Job Cost Sage 50 Accounting 2014
Progress billing can calculate the bill for the partial completion of a job using the following methods:
• Percent of Completion: You can allow Sage 50 to calculate the percentage of a job that has been completed, and the amount to bill for the portion completed.
• Percent of Contract: Select this billing method if you would like to bill the job based upon a percentage of the revenues estimated for the job.
• Percent of Proposal: If you select this billing method, Sage 50 bills the job based on a percentage of proposals that have been accepted. Percent of Completion
Percent of Completion Percent of Completion billing can be used if you would like to bill your customers based on actual expenses incurred for the job.
Setting up Percent of Completion billing
To bill a job using this method:
• Set the Billing Method for the job record as Percent of Completion. • Enter Estimated Expenses for the job. Sage 50 uses this information when calculating the
percent of completion for the job by dividing actual expenses by estimated expenses. • You must also enter Estimated Revenues. Sage 50 needs this information to calculate the
amount to bill. • Actual expenses must be posted to the job. Actual expenses include purchase invoices,
expense payments, and negative inventory adjustments. Actual expenses are needed to calculate the percentage of completion.
Billing Percent of Completion Jobs
Once actual expenses are posted to a Percent of Completion job, you can then use the Select for Progress Billing window to bill for the percentage of the job that has been completed. To access Sage 50’s Select for Progress Billing window, click the Sales Invoices icon in the Jobs navigation area, and select Bill for Work in Progress.
• Select an As-Of date for billable expenses • Set the Customer ID, Job ID, or Job Type filters as needed. • Make sure that percent of Contract / Completion is checked. • If needed, check to include jobs already billed at 100% or more. • Click OK.
Advanced Study Guide for Sage 50 – US Edition Lesson 7 – Setting Up and Using Job Cost
NOTE: Jobs with an Actual End Date prior to the As of date are not listed even if there are
expenses that can be applied using Select for Progress Billing.
Example of How Sage 50 Construction Accounting and Sage 50 Quantum Accounting Bills Using Percent of Completion Billing
To determine how much of a Percent of Completion job should be billed, the Select for Progress Billing window first determines the percentage of the job that has been completed by taking the Actual Expenses incurred so far, and dividing it by the Estimated Expenses recorded with the job record.
Sage 50 then takes this percentage and multiplies it by the Estimated Revenues (minus any amounts previously billed) to determine the amount to Bill for the percentage of the job completed.
The following is a very simple example of how Percent of Completion billing works:
Suppose you have a job where you estimate that at the completion of the job you will have spent $18,000 and you will have generated $36,000 in revenues. You would like to bill this job based on actual expenses incurred.
As you set up the job, set the job’s Billing Method to Percent of Completion.
Lesson 7 – Setting Up and Using Job Cost Sage 50 Accounting 2014
After spending $12,000 on the job, you decide you need to partially bill the customer on what has been completed so that you have the cash to finish the rest of the job. When billing the customer, Select for Progress Billing calculates the billable amount as follows:
First, Sage 50 divides the actual expenses by the estimated revenues set in Maintain, Jobs to get a percentage of completion:
$12,000 ÷ $18,000 = .667 or ~66.7%
Once Select for Progress Billing finds this percentage, it then multiplies it by the estimated revenues and then subtract what was previously billed to find the billing:
.667 x $36,000 = ~$24,000
Lesson 7 – Setting Up and Using Job Cost Sage 50 Accounting 2014
On the Select for Progress Billing window, you have the opportunity to modify the Bill % for each available transaction line, the amount to be billed, or both.
After checking the lines that should be invoiced, click the Save to save the invoice or invoices, click Print to immediately save and print the invoices, or click Email to save and email the invoices.
Once the invoices have been processed, you can then view and print the Progress Billing Report.
NOTE: This report reports the current instance of progress billing invoices and cannot be viewed
again or reprinted once closed.
Advanced Study Guide for Sage 50 – US Edition Lesson 7 – Setting Up and Using Job Cost
Percent of Contract Billing Percent of Contract billing is used when you want to bill for jobs at certain intervals or when specific stages of a job are completed, regardless of the actual expenses incurred. Unlike Percent of Completion billing, Percent of Contract does not use estimated and actual expenses to calculate how much of the job has been completed. When billing for the job using the Select for progress Billing window, you manually enter the percentage of the estimated revenues that you want to bill.
NOTE: Estimated Revenues must be entered for the job, phases, and cost codes before you can bill
for the job using the Percent of Contract progress billing method.
Percent of Proposal When a job’s billing method is configured as Select for Proposal, estimate revenues for the job are not manually recorded with the job record, and instead are based on accepted proposals applied to the job. You will be able to bill for the job based on these estimated revenues using the Select for Progress Billing window.
NOTE: Proposals that include serialized inventory items do not appear on the Select for Progress
Billing window. They must be invoiced from the Sales/Invoicing window.
Also, Proposals cannot be saved with a line applied to a Job record that is set up with a billing method other than “Percent of Proposal” or “No Progress Billing”.
Lesson 7 – Setting Up and Using Job Cost Sage 50 Accounting 2014
Retainage If you request partial payments for an ongoing job, you may also choose to withhold a retainage amount from the progress payments. Retainage is a percentage of an invoice that not owed by the customer until they are satisfied that the job has been completed satisfactorily. This is a good faith gesture from you to your customer that helps give the customer a sense of protection in the event that your work does not live up to the level of quality agreed upon at the beginning of the job. Sage 50’s Retainage feature automatically calculates for you a percentage of an invoice to be withheld as retainage, and places the amount in a special Receivables Retainage general ledger account. While the amount is held in this account, it is not treated as an aging receivable until the retainage is released. Only then does the retained amount show as a receivable in aging and on your Receipts window.
If you hire external subcontractors, you may choose to track vendor withheld retainage in Sage 50, as well.
Setting up Retainage Defaults Before using Sage 50’s retainage feature, you must first create a general ledger account to hold the amounts retained from a sales invoice. This account should have the account type Receivables Retainage.
If your vendor’s withhold retainage from your payables, you need an account defined with the account type Payables Retainage to track the vendor retainage.
Lesson 7 – Setting Up and Using Job Cost Sage 50 Accounting 2014
Accounting Behind the Screens Retainage accounts in Sage 50 are specifically designed to hold amounts withheld from sales and purchase invoices. What makes this account type special is that while retained amounts are still reported on your balance sheet, they are not viewed as a payable or receivable on aging reports and on customer or vendor ledgers until the retained amount is released and transferred back into a regular receivables or payables account.
NOTE: Because these are considered receivable and payable-type accounts, respectively, it should
be noted that retainage can only be used in accrual-based companies.
Once retainage accounts have been created, you can set up the default accounts by accessing the Jobs navigation center, clicking the Jobs button, and then selecting Set Up Job Defaults.
In Job Defaults, select the Billing & Retainage tab to assign the accounts, and define a default percentage that should be withheld as retainage from customer invoices. This percentage can be changed at the job record level.
Advanced Study Guide for Sage 50 – US Edition Lesson 7 – Setting Up and Using Job Cost
NOTE: Retainage is available only in companies using accrual-based accounting. Cash-basis
companies do not have access to Retainage default settings.
After the defaults have been set, you can then set the appropriate percentage for each job at the Retainage Percent field in Maintain Jobs, if different from the defaults.
Withholding Retainage on Sales Invoices When an invoice is created for the customer, and a transaction line is assigned to the job record, Sage 50 multiplies the total amount due before taxes by the retainage percentage. The resulting amount is then transferred to the Receivables Retainage account instead of Accounts Receivable.
Lesson 7 – Setting Up and Using Job Cost Sage 50 Accounting 2014
If required, you can change the amount retained by clicking the Withhold Retainage tab on the invoice and modifying the percentage used or the amount calculated to be withheld.
Advanced Study Guide for Sage 50 – US Edition Lesson 7 – Setting Up and Using Job Cost
Releasing Retainage Once the job or contract is complete and the customer is satisfied, you can release the retainage for billing using Select for Progress Billing.
To access Sage 50’s Select for Progress Billing window, click the Sales Invoices icon in the Jobs navigation area, and select Bill for Work in Progress.
When setting the Select for Progress Billing filters, make sure you check Release Retainage.
Enter a percentage of the retainage to be released, or enter a flat amount. When processed, invoices are created that credit the Receivables Retainage account for the amount released and debit Accounts Receivable for the same amount. The released retainage invoice is now available for billing in aging and your Customer Ledger report.
Advanced Study Guide for Sage 50 – US Edition Lesson 7 – Setting Up and Using Job Cost
Labor Burden Labor Burden is the extra cost of labor that you may incur while your employees work on jobs. This is in addition to your employee’s regular wages. This burden can include employer taxes, insurance, benefits and other costs.
With Sage 50 Construction Accounting and Sage 50 Quantum Accounting’s labor burden feature, you can set a flat percentage of an employee’s job-related wages as an additional overhead expense that can be applied as a reimbursable expense when billing the job.
Setting up Company-Wide Labor Burden Defaults To access labor burden defaults, click the Jobs button in the Jobs navigation area and then select Set Up Job Defaults.
In Job Defaults, select the Labor Burden tab to assign the accounts, and define a default percentage that should be the common burden percentage for all new jobs. This percentage can be changed at the job record level.
You can also enter the Cost of Goods and the Applied Labor Burden G/L accounts that are debited and credited, respectively, when labor burden is distributed in the general ledger.
Accounting Behind the Screens The types of accounts assigned to these fields may vary, depending on how you would like your financials to report labor burden.
For example, if you would like labor burden to affect the Gross Profit amount on your Income Statement, assign a cost of sales-type account at the Labor Burden Cost of Sales field, and assign an expense-type account at the Applied Labor Burden Account field. At the time of payroll
Lesson 7 – Setting Up and Using Job Cost Sage 50 Accounting 2014
entry, Sage 50 debits the cost of sales account by the labor burden amount calculated. The Applied Labor Burden account is credited and acts as a contra expense-type account, reducing expenses.
If at the time of payroll entry you already debit your ER tax and insurance contribution to cost of sales accounts, then assign the same account to both the Labor Burden Cost of Sales and Applied Labor Burden account fields. This creates a "wash" , since the same account is debited and credited by the same amount.
Setting up a Job to Calculate Labor Burden Once defaults are set, they are automatically assigned when a job record is created. You can modify the labor burden percentage at the job record level.
Distributing Labor Burden Once labor burden has been set up for a job, it can be calculated through payroll when an employee’s hours or salary is assigned to a job.
In the Hours Assigned to Jobs box, select the job and then enter the hours or salary amount in the appropriate field. Labor burden is calculated automatically based on the percent entered with the job record. You can also modify the percentage used for a particular pay check. Labor burden automatically recalculates based on the change.
Advanced Study Guide for Sage 50 – US Edition Lesson 7 – Setting Up and Using Job Cost
Billing Labor Burden to the Customer Once labor burden has been calculated in payroll, it is available to be billed to the customer as a reimbursable expense using the Apply Tickets/Expenses area of the Sales/Invoicing window, or the Invoice Time and Expenses window.
Lesson 7 – Setting Up and Using Job Cost Sage 50 Accounting 2014
Check Your Knowledge 1. Use Phases and Cost Codes track Jobs in greater detail.
a. True b. False
2. What are the default statuses in Sage 50 that you can assign to jobs?(select all that apply) a. In Progress b. Waiting for Approval c. Completed d. On Hold
3. A single Phase you define can be used for several Jobs. a. True b. False
4. Which progress billing method would you select to bill based on actual expenses incurred? a. No Progress Billing b. Percent of Contract c. Percent of Completion d. Percent of Proposal
5. Retainage is available in Sage 50 companies using accrual or cash basis accounting. a. True b. False
Advanced Study Guide for Sage 50 – US Edition Lesson 7 – Setting Up and Using Job Cost
Exercise 7.1 – Setting up a Job Goal In this exercise, you will learn how to set up a job.
Scenario Tacoma Park Golf Course has contracted with Bellwether to redesign their golf course landscaping. The job is expected to take three months. To track expenses and revenue pertaining to this contract, it will be set up as a job. Another job will be set up for Frost Technology Park. Because it is a small one-day job, Frost Technology Park will be billed on a cost-process basis.
1. Access the Jobs navigation area, click the Jobs button, and select New Job.
PRO: In Sage 50 Pro & Premium Accounting, select New Job from the Jobs icon in the Customer
& Sales navigation center.
2. Enter TACOMA in the Job ID field.
3. Enter Tacoma Golf Course Redesign in the Description field.
4. Select the Use phases to track job in more detail check box.
COMPLETE: Phases are available in Sage 50 Complete and higher.
5. Enter 03/15/14 in the Start Date field.
6. Enter 06/30/14 in the Projected End Date field.
7. Select TACOMA from the For Customer lookup list.
8. In the Job Type field, enter COSTPLUS. The remaining fields should be left blank.
9. Click Save & New.
10. Enter the job information for the Frost Technology Park project. Enter FROST in the Job ID field.
11. Enter Frost Tech Park Flower Bed in the Description field.
12. Ensure that the Use phases to track job in more detail check box remains unchecked.
13. Enter 03/15/14 in the Start Date field.
14. Enter 03/17/14 in the Projected End Date field.
15. Select FROST from the For Customer lookup list.
16. In the Job Type field, enter COSTPROC.
17. Click Save, then Close.
Lesson 7 – Setting Up and Using Job Cost Sage 50 Accounting 2014
Exercise 7.2 – Setting up Phases Goal In this exercise, you will learn how to set up a phase.
Scenario Bellwether will add phases to track the sprinkler system installation portion of the Tacoma job. These phases will allow for more detail in tracking expenses.
1. Click the Phases icon, and select New Phase.
PRO: In Sage 50 Pro & Premium Accounting, select New Phase from the Jobs icon in the
Customer & Sales navigation center.
2. Enter 011-Sprinkler Design in the Phase ID field.
3. Enter Sprinkler Sys Design and Plan in the Description field.
4. Select the This phase uses cost codes radio button.
5. Click Save & New to add the next phase. 6. Enter 012-Sprinkler Inst. in the Phase ID field.
7. Enter Sprinkler System Installation in the Description field.
8. Select the This phase uses cost codes radio button.
9. Click Save & New to continue.
At this time, Two additional phases will be set up for additional job expenses and revenue.
10. Enter 998-overhead in the Phase ID field.
11. Enter Overhead Expenses in the Description field.
12. Select This phase uses the cost type, and choose Other from the list.
Advanced Study Guide for Sage 50 – US Edition Lesson 7 – Setting Up and Using Job Cost
Exercise 7.5 – Copying From an Existing Job Goal In this exercise, you will learn how to copy from an existing job.
Scenario Kenton Golf and Tennis Center has decided to contract with Bellwether to landscape their golf course and surrounding areas. Since this is the generally the same type of job as the job for Tacoma Gold Course, we can copy the existing information, then edit as necessary. Kenton will be billed on a contract basis: one third when the site is complete, the remaining two thirds to be billed each month.
1. Select TACOMA from the Job ID lookup list.
2. Next, change TACOMA to KENTON.
3. Change the Description to Kenton Golf Course Redesign.
4. Enter a Start Date of 03/22/14.
5. On the General tab, select KENTON from the For Customer lookup list.
6. Enter CONTRACT in the Job Type field.
7. Select the Estimated Expenses and Revenue tab, and edit the amounts to reflect the information below:
Phase ID Cost Code ID # of Units Expenses Revenues
01-Design 20.00 1500.00
02-Permits 5.00 230.00
04-Ground Prep 010-Labor Cost 100.00 2000.00
05-Landscape 010-Labor Cost 200.00 3500.00
998-overhead 1450.00
PRO: If you are using Sage 50 Pro Accounting, enter 8680.00 in the Expenses field and 16460.00
in the Revenues field. Then, skip to Step 10.
8. On the next line, select a Phase ID of NoPhase.
9. Enter 16460.00 in the Revenues field on the NoPhase line.
Lesson 7 – Setting Up and Using Job Cost Sage 50 Accounting 2014
Exercise 7.7 – Applying Time Tickets to a Job Goal In this exercise, you will learn how to apply time tickets to a job.
Scenario The work done by employees for specific jobs will be entered as time tickets. These time tickets will be used to pay employees and applied to customer invoices. Bert’s time will be entered using the Daily tab on the Time Tickets window. The time tickets entered will be applied to the job when employees are paid. Follow these steps to enter time tickets for a job using the Daily tab:
PRO: Time and Expense tickets are not available for Sage 50 Pro Accounting. If you are using Sage
50 Pro, go to the next exercise.
1. In the Customers & Sales navigation center, select New Time Ticket from the Time and Expense Tickets icon.
2. From the Employee lookup list, select BSHAW.
3. From the To be applied drop-down list, choose Against a Job.
4. Select FROST from the job lookup list.
5. Choose LAND-1810 from the Activity Item lookup list.
6. Enter 03/24/14 in the Ticket Date field.
7. Choose Calculate Time.
8. Enter a Start time of 8:30 AM.
9. Enter an End time of 5:00 PM.
10. Enter a Break of 1:00.
11. After you have entered the times, press ENTER or TAB to move to the next field. Notice the Duration is 7:30 or 7 hours, 30 minutes, while the Unit Duration is the whole number of 7.50.
12. These hours will be billed, so leave Billable for the Billing Status.
13. Change the Billing Type to Activity Rate.
14. Select Price Level 1 as the Billing Rate.
15. The Billing Amount should be 337.50.
16. Leave Pay Level set to Regular, and do not select Has this ticket been used in Payroll.
Advanced Study Guide for Sage 50 – US Edition Lesson 7 – Setting Up and Using Job Cost
Exercise 7.8 – Applying Payroll Hours to a Job Goal In this exercise, you will learn how to apply payroll hours to a job.
Scenario Some of the hours for a regular hourly employee need to be applied to jobs.
1. Select Pay a Single Employee from the Pay Employees icon in the Employees & Payroll navigation center. If you get a message requesting you to register your tax service, click OK to continue.
2. Select CLIPPER from the Employee ID lookup list.
3. If you do not want to print the check, enter a Check Number of 1228.
4. If you do want to print the check, leave the Check Number field blank.
5. Enter a Date of 03/28/14.
6. Enter 03/28/14 in the Pay Period Ends field.
7. In the Hours Worked section, Regular hours should show 40 hours.
8. Click the Jobs button on the toolbar.
9. In the blank Job field, select FROST from the lookup list.
10. Leave the Hourly Field set to Regular.
11. In the Hours field, enter 9; then press ENTER or TAB.
12. The Amount should equal 108.00.
The thirty one remaining hours were not spent on activities pertaining to jobs.
Lesson 7 – Setting Up and Using Job Cost Sage 50 Accounting 2014
13. Click OK to return to the Payroll Entry window.
14. If you do not want to print the check, click Save, then Close.
15. If you want to print the check, click the Print button. Enter 1228 for the First Check Number, and click Print. The check will be saved automatically after it prints. Then, click Close.
Advanced Study Guide for Sage 50 – US Edition Lesson 7 – Setting Up and Using Job Cost
Exercise 7.10 – Posting Overhead to a Job Goal In this exercise, you will learn how to post overhead to a job.
Scenario Overhead expenses incurred during the Tacoma job will be applied to a phase used only for tracking overhead. This will be entered as a General Journal entry and can be billed to the customer.
1. Select General Journal Entry from the Jobs navigation center.
PRO: In Sage 50 Complete and Premium Accounting, select General Journal Entry and then New
General Journal Entry from the Banking navigation center.
2. Enter 03/27/14 for the Date. Enter a Reference of JOBOVERHEAD.
Exercise 7.11 – Entering a Contract Bill as a Sales Order Goal In this exercise, you will learn how to enter a contract bill as a sales order.
Scenario A sales order will be entered for the KENTON job to keep track of what has and has not been billed.
1. In the Customers & Sales navigation center, select New Sales Order from the Sales Orders icon.
2. Select KENTON from the Customer ID lookup list.
3. Enter 03/15/14 for the Date.
4. Enter 03/15/14 in the Ship By field.
5. Enter CONTRACT-01 in the SO # field.
6. On the first line, enter a Quantity of 1.00.
7. Enter Initial Contract Total in the Description field.
8. In the Amount field enter 16500.00.
9. Select KENTON, NoPhase (NoPhase is an actual phase) from the Job lookup list.
10. On the second line, enter a Description of 30% due when Planning and Prep phase is complete.
11. On the third line, enter a Description of 40% due when Installation phase is complete. 12. On the fourth line, enter a Description of Remaining 30% due upon completion of job.
13. Click Save.
14. Click Close.
Lesson 7 – Setting Up and Using Job Cost Sage 50 Accounting 2014
Exercise 7.13 – Billing a Cost Plus Job Goal In this exercise, you will learn how to bill a cost plus job.
Scenario Bellwether needs to bill Tacoma for expenses incurred to date. First, reimbursable expenses will be applied; then time tickets will be applied.
1. In the Customers & Sales navigation center, select New Sales Invoice from the Sales Invoices icon.
2. Select TACOMA from the Customer ID lookup list.
3. Enter a Date of 03/28/14.
4. Enter an Invoice # of 22010.
5. Click the Apply Tickets/Expenses link located in the lower-left corner of the Sales/Invoicing window.
PRO: If you are using Sage 50 Pro Accounting, go to step 7.
6. On the Time Tickets tab, check Use next to all listed time tickets.
7. Select the Reimbursable Expenses tab.
8. Select Job from the Consolidate By drop-down list.
9. Select the Use check box for each expense listed.
10. The charges will need to be marked up in price. Click the WriteUp button on the toolbar.
Lesson 7 – Setting Up and Using Job Cost Sage 50 Accounting 2014
Sage 50 Quantum Accounting is a top-of-the-line accounting solution that delivers all the features of Sage 50 Premium, as well as many other advanced features and functionality. Though some features are discussed in other areas of the Advanced Study Guide, in this lesson you will learn how to:
Establishing Security Roles Sage 50 Quantum Accounting provides the ability to define Roles to more easily maintain user security, rather than maintaining security access for each user. Accessed from the same Security set up window, the Roles tab allows you to pre-define the access given to a group of users assigned to that role. Any changes to the role affect all users to which it is assigned.
To maintain Roles, on the Company navigation center, select Set Up Security from the Users icon. The following reminder message appears:
Click OK, to access the User Security window. The User List tab displays the user and the role assigned to that user in the column Roles for This Company, rather than the Access for This Company found in other editions of Sage 50 Accounting.
Advanced Study Guide for Sage 50 – US Edition Lesson 8 – Using Sage 50 Quantum Accounting Accounting
Click on the Roles List tab to view, modify or add Roles.
Click the View/Edit Role button to see the details of the access allowed to a Role. This window is similar to the Selected Access window displayed when maintaining individual users in other editions of Sage 50 Accounting.
Now, when adding a user on the User List tab of the Security window, the User Roles window appears (rather than the Selected Access window) to easily assign the user to a Role.
Advanced Study Guide for Sage 50 – US Edition Lesson 8 – Using Sage 50 Quantum Accounting Accounting
Utilizing SmartPosting SmartPosting manages the posting of transactions by continually searching the database for unposted transactions so that you can continue to add and save transactions without waiting for the posting to finish. The SmartPosting Manager monitors the state of the service running in the background should an error or problem occur. The status is displayed on the Navigation Bar under the Shortcuts menu, and in the Company Information section of the Company navigation center.
The service stops during single-user access processing such as changing the accounting period, year-end close, backup, purge, etc. The service automatically restarts when the process has finished.
Although this process is installed on all workstations whenever Quantum is installed, it runs on the server thus increasing performance for multiple user environments. Smart Posting is the default posting method when creating and/or converting a Quantum company.
You can switch to Smart Posting by changing the Posting Method option on the Maintain Company Information window.
Advanced Study Guide for Sage 50 – US Edition Lesson 8 – Using Sage 50 Quantum Accounting Accounting
To open the Smart Posting Manager window, select File from the menu bar and then select Smart Posting Manager. On the Smart Posting Manager window you can start and stop the service. You can also view how many transactions need to be posted, the Last posting date/time, and how many transactions posted during the last cycle.
If you stop the service, the SmartPosting Manager window shows a status of stopped. You can re-start the service by clicking the Start SmartPosting button. Stopping the service does not change your posting method. Your posting method remains SmartPosting, but the system handles the transactions as if you are in batch posting until you turn the service back on, or change to a different posting method.
Utilizing Order Process Workflow With the Order Process Workflow feature, you can track transactions by assigning statuses to transactions and by assigning transactions to users. This can be done when the transaction is created using the Track It panel which is on the transaction screen.
Statuses can be changed and transactions reassigned from the Track It panel and from the My Inbox module of My Dashboard, discussed in the next section of this lesson.
Transactions can be assigned to users or to roles. If you assign a transaction to a role, the transaction will essentially be assigned to all users who have that particular role. The Assign To drop list (on the Track It panel and My Inbox) contains all users with at least Edit access to the transaction type and any roles that have that level of access that have been assigned to users in your company.
Tracking statuses are set up for each type of transaction on the Tracking Status Settings screen. You can set up any tracking statuses that make sense for the workflow at your company. Each status that you create can have a default user assigned to it, minimizing the possibility that a transaction saved with a specific status is saved unassigned.
Users who will be assigned or assigning transactions should add the My Inbox module to My Dashboard. This allows them to see any transactions that are assigned to them or their role and to
change the status or reassign the transactions. Some users may be able to see all transactions and who they are assigned to based on their security rights.
FOR MORE INFORMATION: To add My Inbox to My Dashboard, see the next section of this lesson.
The Transactions by Tracking Status module on My Dashboard is a great way to see the status of all transactions of a certain type within a particular time period. This helps you see where transactions are in the process so you can manage workflow and make good decisions for your business.
In addition, the Transaction Detail by Status report lists transactions along with their tracking status and assigned to details. You can also filter this report by Tracking Status and Assigned To. The report can be accessed in the same way as other reports from the Reports and Forms window, General Ledger group; however, if it is accessed from the Transactions by Tracking Status module on My Dashboard, by clicking the View Transaction Detail by Status report link, it opens the report with it filtered by the transaction type selected on the module. You can also open the report by double-clicking on a status in the pie chart or the Status Name column. When you open the report this way, it is filtered by the transaction type selected on the module and by the status
Finally, you can set up notification rules to have notifications sent to users when the tracking statuses and/or assignees of certain transactions are changed. These rules determine when a notification should be sent, who it should be sent to, and what it should say.
Tracking Transactions To set up tracking statuses, go to Maintain>Workflow>Tracking Status Settings or click the Add or Edit Status button on the Track It panel accessed from within a transaction window (such as Quotes, Sales Orders, etc.).
The Tracking Status Settings window appears.
To add a status:
1. Select a customer or purchase transaction type from the left navigation bar.
2. Click the Add button next to the Status List.
3. Enter a Name for the new status.
4. If you want the transaction to be assigned to a default user when the status is selected, select a user from the assignee dropdown list. Otherwise, leave it blank.
NOTE: Only Sage 50 users that have access to the selected transaction will appear in the assignee
dropdown list.
5. Enter any additional instructions or steps at the Next Steps field.
Advanced Study Guide for Sage 50 – US Edition Lesson 8 – Using Sage 50 Quantum Accounting Accounting
6. Click Save to save the new status and then click OK to exit the Tracking Status Settings window.
FOR MORE INFORMATION: For examples of statuses, refer to Help in Sage 50.
After the appropriate tracking status is assigned, and the transaction is assigned to the correct user, save the transaction.
Next Steps displays the next steps in the Order Workflow, according to the Notification Rules defined by you.
Notifications
Notification rules determine when a notification should be sent, who it should be sent to, and what it should say. Notifications are sent within Sage 50 to the Sage 50 user or users that were specified in the rule. The notifications appear in the My Notifications list.
You can set up notification rules to have notifications sent to specified users when:
• Transactions are assigned to certain users and/or roles
• Transactions are assigned certain tracking statuses
• The tracking status and/or assignee for transactions are changed
Use the Set Up Notification Rules screen to set up these notifications.
The My Inbox on the My Dashboard navigation center can be filtered in various ways depending on the needs of the user, and the security rights of the user. From this pane, the status can be changed, as well as the user to whom it is assigned. You can also view the tracking notes for each transaction (the Tracking Notes column can also be added to select management center transaction modules). In addition, the transaction can be opened by selecting the Detail link.
FOR MORE INFORMATION: Refer to Help in Sage 50 for additional information on the Order
• Customize this page: This option allows the user to customize the information on the selected tab or page.
• Delete this tab: Click this button to delete the selected tab.
• Make this the default page: This option makes the selected tab the default page when the company is open. Once the default page is chosen, this option displays This is the default page.
To customize My Dashboard:
1. Select the Customize this page link to open the following window:
2. Enter a customized Tab name, which is a required field.
3. Select a Tab position from the drop-down list.
4. In the Choose an area to pick the sections for your page drop-down list, select an area of Sage 50 Quantum Accounting to display on this page.
5. In the Available Sections list, select the section(s) and click Add to move them to the Selected Sections list. Select multiple sections in the Available Sections list by holding down the CTRL key while clicking on each section. Section Titles in the Selected Sections list can be rearranged by clicking the Move Up or Move Down buttons. Rename items in the Selected Sections list by left clicking in the Section Title field and entering a new name. Another way to rename items is to select the section and then click the Rename button.
NOTE: Only sections that the Sage 50 user has access to in the User Security area appear in the
Modifying Task Window Layouts You can define different formats, known as layouts or templates, for entering and reviewing sales and purchase transactions in task windows. You can use the templates that come with Sage 50 Accounting or design your own by hiding one or more unnecessary data-entry fields. By hiding these fields, you can make data entry tasks faster and easier. Rather than tabbing through unused fields, you can move directly from one field to the next.
When templates can be used on a task window, a Layout button appears on the toolbar. You can customize layouts for the following task windows:
• Quotes
• Sales Orders
• Proposals
• Sales/Invoicing
• Purchase Orders
• Purchases/Receive Inventory
Click the Layout button to list the templates available and to access the Customize Layout option.
Predefined Layouts Layouts included with Sage 50 Accounting are labeled <Predefined> in the Layout drop-down list.
Sage 50 provides a predefined layout for the Purchase Orders and Purchases/Receive Inventory task windows. This Standard layout includes all purchase data entry fields.
Sage 50 provides two predefined layouts for entering quotes and sales invoices:
• The <Predefined> Product layout is the default sales layout and displays all invoice data entry fields. This layout is typically used by companies that sell inventory items.
• The <Predefined> Service layout hides inventory-related fields, such as Quantity, Item ID, and Unit Price. This layout is typically used by companies that sell services and do not sell inventory items.
The Sales Order window offers only the <Predefined> Product layout. The Proposals window offers a <Predefined> Standard layout that includes all proposal data entry fields.
Advanced Study Guide for Sage 50 US - Edition Lesson 9 – Customizing Sage 50
Customized Templates You can customize layouts if you do not find a well-suited predefined layout. Customizing a layout allows fields to be hidden on a task window. If there is information in a hidden field, the information is not removed; it is simply hidden from view. The layout used can be changed at any time. Layouts can be customized for each task window and for each user in a network environment.
Maintain Templates Window When you select the Customize Layout option on the Layout drop-down list, the Maintain Templates window opens. This window is used to create task window layouts.
Header Fields
Template Name: Enter a name for your new template/layout.
Description: Enter a description of your new layout.
Individual Fields and Columns
Use the check boxes to select which fields will appear on the entry screen and associated printed form. Note that disabled checkboxes indicate a required field.
Selecting a Layout To select a customized layout, from the appropriate task window, click the Layout button. Sage 50 displays a check next to the layout currently in use. From the drop-down list, select the name of the layout you want to use.
Advanced Study Guide for Sage 50 US - Edition Lesson 9 – Customizing Sage 50
Utilizing Memorized Transactions Using the memorized transactions feature, you can enter common transactions for later use. You can also save an existing transaction as a memorized transaction.
Each memorized transaction contains information that is used to create a new transaction. Using memorized transactions can save time in repetitive data entry tasks. You can memorize quotes, sales invoices, purchase orders, payments, and general journal entries.
For example, you may place an office supply order as needed throughout the month. You can memorize the common office supplies ordered using a memorized purchase order. When you need to place an order, you can use the memorized purchase order, remove any items that do not need to be ordered, add any additional items that need to be ordered, and enter the quantities to order.
Creating Memorized Transactions There are two ways to create memorized transactions. The first is to enter the memorized transaction manually. The second is to save a posted transaction as a memorized transaction.
Entering Memorized Transactions You can enter a memorized transaction for later use by selecting an option from the Maintain, Memorized Transactions submenu. Use these steps to enter a new memorized transaction:
• From the Maintain menu, select Memorized Transactions; then select the type of transaction desired.
• Enter a Transaction ID and Description that identifies the transaction.
• Enter the transaction information in the fields. All fields are optional and can be changed at any time.
• When finished, select Save to record the memorized transaction for later use.
Saving Memorized Transactions You can save a posted transaction as a memorized transaction by clicking the drop-down arrow next to the Save button on the transaction toolbar, then selecting Memorize. Use these steps to save a posted transaction as a memorized transaction:
• From the transaction window, select List to display a list of transactions.
• On the list window, double-click the transaction you want to memorize. The transaction displays in the transaction window.
• Click the drop-down arrow to the right of the Save button and select Memorize. The transaction is copied into the Maintain Memorized Transaction window.
• Enter a Transaction ID and Description that identifies the transaction.
• Edit the transaction information in the fields. All fields are optional and can be changed at any time.
• When finished, select Save to record the memorized transaction for later use.
Creating New Transactions You can create new transactions from memorized transactions in two ways. The first is to use the transaction from the Maintain Memorized Transactions window. The second is to select from a list of memorized transactions while using a task window.
Using Memorized Transactions Memorized transactions can be used at any time to create new transactions. Follow these steps to use a memorized transaction:
• From the Maintain menu, select Memorized Transactions; then select the type of transaction desired.
• Enter or select the Transaction ID you want to use.
• Select the Select button.
• Sage 50 Accounting displays the transaction in the corresponding task window. Make any changes needed to the transaction, and post it. Changes made to the transaction will not affect the memorized transaction.
Selecting Memorized Transactions You can select from a list of memorized transactions while using a task window. Follow these steps to select a memorized transaction:
• From the appropriate Task window, click the drop-down arrow to the right of the List button.
• Then click Select.
• Double-click the memorized transaction you want to use.
Advanced Study Guide for Sage 50 US - Edition Lesson 9 – Customizing Sage 50
Copying Transactions Sage 50 Accounting’s Copy Transactions tool lets you easily create a new transaction based on a previously saved one in less time than it would take to create a new transaction from scratch.
Copy a Transaction There are two ways to copy a transaction. You can view the transaction that you want to copy on a transaction screen and then select the Copy button on the toolbar.
You can also right-click on transaction in a list or in a management center section and select Copy this transaction.
Using either method, Sage 50 will instantly display an exact copy of the transaction on the transaction screen. You can then make any changes needed for the new transaction (for example changing the item quantities and the date) and then print or save the new transaction. In the background, a new transaction will be created. No changes will be made to the original transaction.
The following transactions can be copied using the methods outlined above:
• Quotes • Sales Invoices • Purchases
• Sales Orders • Purchase Orders • General Journal Entries
• Proposals
Advanced Study Guide for Sage 50 US - Edition Lesson 9 – Customizing Sage 50
One navigation center, Business Status, displays a variety of general business information, including account balances, revenue amounts, and receivables and payables data. Links to various reports can be found in different panes, and a special area is provided to quickly and easily find a report in Sage 50.
COMPLETE: The Business Center, is available in Sage 50 Complete Accounting and higher.
QUANTUM: The Business Status is part of the “My Dashboard” navigation center in Sage 50 Quantum Accounting and is discussed in more detail in the Using Quantum Features lesson.
To customize the Business Status navigation center, select Customize this page from the toolbar at the top of the window. The following window appears:
Select to Show the various sections, and place them in the Order which corresponds with the layout at the bottom of the window.
Sections can be rearranged by selecting the Move Up or Move Down buttons, and the effect of the layout is shown at the bottom of the window.
Click OK to save the changes.
Advanced Study Guide for Sage 50 US - Edition Lesson 9 – Customizing Sage 50
Below the list of navigation centers on the left side of the Sage 50 Accounting desktop is a list of Shortcuts to various tasks or reports.
By default, Sage 50 adds several common shortcuts. Select the Customize link to display the following window to modify the list.
Select from most tasks, reports or forms to create a unique list of shortcuts to help you more efficiently navigate to your most commonly used areas of Sage 50.
Advanced Study Guide for Sage 50 US - Edition Lesson 9 – Customizing Sage 50
Exercise 9.1 – Setting up a Sales Invoice Layout Goal In this exercise, you will learn how to modify the layout of the sales invoice.
Scenario Bellwether has decided not to use sales reps, and never changes the sales tax code on an invoice; therefore, there is no need to show these fields on the Sales/Invoicing window.
1. On the Customers & Sales navigation center, select New Sales Invoice from the Sales Invoices icon.
2. Click the Layout button on the toolbar, and choose Customize Invoice Layout from the drop-down list.
3. Click the New button.
4. Enter a Template Name of Product.
5. Enter a Description of Product Sales Invoice.
6. Scroll down in the Individual Fields list to Sales Rep.
7. Remove the check in the Entry Screen and Printed Form columns.
8. Remove the check in the Entry Screen column for Sales Tax Code.
9. Click Save, and then OK at the message.
10. Click Close.
11. Click Close on the Sales/Invoicing window.
12. To test the template, select New Sales Invoice.
Sage 50 Quantum Accounting is a top-of-the-line accounting solution that delivers all the features of Sage 50 Premium, as well as many other advanced features and functionality. Though some features are discussed in other areas of the Advanced Study Guide, in this lesson you will learn how to:
Establishing Security Roles Sage 50 Quantum Accounting provides the ability to define Roles to more easily maintain user security, rather than maintaining security access for each user. Accessed from the same Security set up window, the Roles tab allows you to pre-define the access given to a group of users assigned to that role. Any changes to the role affect all users to which it is assigned.
To maintain Roles, on the Company navigation center, select Set Up Security from the Users icon. The following reminder message appears:
Click OK to access the User Security window. The User List tab displays the user and the role assigned to that user in the column Roles for This Company, rather than the Access for This Company found in other editions of Sage 50 Accounting.
Advanced Study Guide for Sage 50 – US Edition Lesson 8 – Using Sage 50 Quantum Accounting Accounting
Click on the Roles List tab to view, modify or add Roles.
Click the View/Edit Role button to see the details of the access allowed to a Role. This window is similar to the Selected Access window displayed when maintaining individual users in other editions of Sage 50 Accounting.
Now, when adding a user on the User List tab of the Security window, the User Roles window appears (rather than the Selected Access window) to easily assign the user to a Role.
Advanced Study Guide for Sage 50 – US Edition Lesson 8 – Using Sage 50 Quantum Accounting Accounting
Utilizing SmartPosting SmartPosting manages the posting of transactions by continually searching the database for unposted transactions so that you can continue to add and save transactions without waiting for the posting to finish. The SmartPosting Manager monitors the state of the service running in the background should an error or problem occur. The status is displayed on the Navigation Bar under the Shortcuts menu, and in the Company Information section of the Company navigation center.
The service stops during single-user access processing such as changing the accounting period, year-end close, backup, purge, etc. The service automatically restarts when the process has finished.
Although this process is installed on all workstations whenever Quantum is installed, it runs on the server thus increasing performance for multiple user environments. Smart Posting is the default posting method when creating and/or converting a Quantum company.
You can switch to Smart Posting by changing the Posting Method option on the Maintain Company Information window.
Advanced Study Guide for Sage 50 – US Edition Lesson 8 – Using Sage 50 Quantum Accounting Accounting
To open the Smart Posting Manager window, select File from the menu bar and then select Smart Posting Manager. On the Smart Posting Manager window you can start and stop the service. You can also view how many transactions need to be posted, the Last posting date/time, and how many transactions posted during the last cycle.
If you stop the service, the SmartPosting Manager window shows a status of stopped. You can re-start the service by clicking the Start SmartPosting button. Stopping the service does not change your posting method. Your posting method remains SmartPosting, but the system handles the transactions as if you are in batch posting until you turn the service back on, or change to a different posting method.
Utilizing Order Process Workflow With the Order Process Workflow feature, you can track transactions by assigning statuses to transactions and by assigning transactions to users. This can be done when the transaction is created using the Track It panel which is on the transaction screen.
Statuses can be changed and transactions reassigned from the Track It panel and from the My Inbox module of My Dashboard, discussed in the next section of this lesson.
Transactions can be assigned to users or to roles. If you assign a transaction to a role, the transaction will essentially be assigned to all users who have that particular role. The Assign To drop list (on the Track It panel and My Inbox) contains all users with at least Edit access to the transaction type and any roles that have that level of access that have been assigned to users in your company.
Tracking statuses are set up for each type of transaction on the Tracking Status Settings screen. You can set up any tracking statuses that make sense for the workflow at your company. Each status that you create can have a default user assigned to it, minimizing the possibility that a transaction saved with a specific status is saved unassigned.
Users who will be assigned or assigning transactions should add the My Inbox module to My Dashboard. This allows them to see any transactions that are assigned to them or their role and to
change the status or reassign the transactions. Some users may be able to see all transactions and who they are assigned to based on their security rights.
FOR MORE INFORMATION: To add My Inbox to My Dashboard, see the next section of this lesson.
The Transactions by Tracking Status module on My Dashboard is a great way to see the status of all transactions of a certain type within a particular time period. This helps you see where transactions are in the process so you can manage workflow and make good decisions for your business.
In addition, the Transaction Detail by Status report lists transactions along with their tracking status and assigned to details. You can also filter this report by Tracking Status and Assigned To. The report can be accessed in the same way as other reports from the Reports and Forms window, General Ledger group; however, if it is accessed from the Transactions by Tracking Status module on My Dashboard, by clicking the View Transaction Detail by Status report link, it opens the report with it filtered by the transaction type selected on the module. You can also open the report by double-clicking on a status in the pie chart or the Status Name column. When you open the report this way, it is filtered by the transaction type selected on the module and by the status
Finally, you can set up notification rules to have notifications sent to users when the tracking statuses and/or assignees of certain transactions are changed. These rules determine when a notification should be sent, who it should be sent to, and what it should say.
Tracking Transactions To set up tracking statuses, go to Maintain>Workflow>Tracking Status Settings or click the Add or Edit Status button on the Track It panel accessed from within a transaction window (such as Quotes, Sales Orders, etc.).
The Tracking Status Settings window appears.
To add a status:
1. Select a customer or purchase transaction type from the left navigation bar.
2. Click the Add button next to the Status List.
3. Enter a Name for the new status.
4. If you want the transaction to be assigned to a default user when the status is selected, select a user from the assignee dropdown list. Otherwise, leave it blank.
NOTE: Only Sage 50 users that have access to the selected transaction will appear in the assignee
dropdown list.
5. Enter any additional instructions or steps at the Next Steps field.
Advanced Study Guide for Sage 50 – US Edition Lesson 8 – Using Sage 50 Quantum Accounting Accounting
6. Click Save to save the new status and then click OK to exit the Tracking Status Settings window.
FOR MORE INFORMATION: For examples of statuses, refer to Help in Sage 50.
After the appropriate tracking status is assigned, and the transaction is assigned to the correct user, save the transaction.
Next Steps displays the next steps in the Order Workflow, according to the Notification Rules defined by you.
Notifications
Notification rules determine when a notification should be sent, who it should be sent to, and what it should say. Notifications are sent within Sage 50 to the Sage 50 user or users that were specified in the rule. The notifications appear in the My Notifications list.
You can set up notification rules to have notifications sent to specified users when:
• Transactions are assigned to certain users and/or roles
• Transactions are assigned certain tracking statuses
• The tracking status and/or assignee for transactions are changed
Use the Set Up Notification Rules screen to set up these notifications.
The My Inbox on the My Dashboard navigation center can be filtered in various ways depending on the needs of the user, and the security rights of the user. From this pane, the status can be changed, as well as the user to whom it is assigned. You can also view the tracking notes for each transaction (the Tracking Notes column can also be added to select management center transaction modules). In addition, the transaction can be opened by selecting the Detail link.
FOR MORE INFORMATION: Refer to Help in Sage 50 for additional information on the Order
• Customize this page: This option allows the user to customize the information on the selected tab or page.
• Delete this tab: Click this button to delete the selected tab.
• Make this the default page: This option makes the selected tab the default page when the company is open. Once the default page is chosen, this option displays This is the default page.
To customize My Dashboard:
1. Select the Customize this page link to open the following window:
2. Enter a customized Tab name, which is a required field.
3. Select a Tab position from the drop-down list.
4. In the Choose an area to pick the sections for your page drop-down list, select an area of Sage 50 Quantum Accounting to display on this page.
5. In the Available Sections list, select the section(s) and click Add to move them to the Selected Sections list. Select multiple sections in the Available Sections list by holding down the CTRL key while clicking on each section. Section Titles in the Selected Sections list can be rearranged by clicking the Move Up or Move Down buttons. Rename items in the Selected Sections list by left clicking in the Section Title field and entering a new name. Another way to rename items is to select the section and then click the Rename button.
NOTE: Only sections that the Sage 50 user has access to in the User Security area appear in the
Modifying Task Window Layouts You can define different formats, known as layouts or templates, for entering and reviewing sales and purchase transactions in task windows. You can use the templates that come with Sage 50 Accounting or design your own by hiding one or more unnecessary data-entry fields. By hiding these fields, you can make data entry tasks faster and easier. Rather than tabbing through unused fields, you can move directly from one field to the next.
When templates can be used on a task window, a Layout button appears on the toolbar. You can customize layouts for the following task windows:
• Quotes
• Sales Orders
• Proposals
• Sales/Invoicing
• Purchase Orders
• Purchases/Receive Inventory
Click the Layout button to list the templates available and to access the Customize Layout option.
Predefined Layouts Layouts included with Sage 50 Accounting are labeled <Predefined> in the Layout drop-down list.
Sage 50 provides a predefined layout for the Purchase Orders and Purchases/Receive Inventory task windows. This Standard layout includes all purchase data entry fields.
Sage 50 provides two predefined layouts for entering quotes and sales invoices:
• The <Predefined> Product layout is the default sales layout and displays all invoice data entry fields. This layout is typically used by companies that sell inventory items.
• The <Predefined> Service layout hides inventory-related fields, such as Quantity, Item ID, and Unit Price. This layout is typically used by companies that sell services and do not sell inventory items.
The Sales Order window offers only the <Predefined> Product layout. The Proposals window offers a <Predefined> Standard layout that includes all proposal data entry fields.
Advanced Study Guide for Sage 50 US - Edition Lesson 9 – Customizing Sage 50
Customized Templates You can customize layouts if you do not find a well-suited predefined layout. Customizing a layout allows fields to be hidden on a task window. If there is information in a hidden field, the information is not removed; it is simply hidden from view. The layout used can be changed at any time. Layouts can be customized for each task window and for each user in a network environment.
Maintain Templates Window When you select the Customize Layout option on the Layout drop-down list, the Maintain Templates window opens. This window is used to create task window layouts.
Header Fields
Template Name: Enter a name for your new template/layout.
Description: Enter a description of your new layout.
Individual Fields and Columns
Use the check boxes to select which fields will appear on the entry screen and associated printed form. Note that disabled checkboxes indicate a required field.
Selecting a Layout To select a customized layout, from the appropriate task window, click the Layout button. Sage 50 displays a check next to the layout currently in use. From the drop-down list, select the name of the layout you want to use.
Advanced Study Guide for Sage 50 US - Edition Lesson 9 – Customizing Sage 50
Utilizing Memorized Transactions Using the memorized transactions feature, you can enter common transactions for later use. You can also save an existing transaction as a memorized transaction.
Each memorized transaction contains information that is used to create a new transaction. Using memorized transactions can save time in repetitive data entry tasks. You can memorize quotes, sales invoices, purchase orders, payments, and general journal entries.
For example, you may place an office supply order as needed throughout the month. You can memorize the common office supplies ordered using a memorized purchase order. When you need to place an order, you can use the memorized purchase order, remove any items that do not need to be ordered, add any additional items that need to be ordered, and enter the quantities to order.
Creating Memorized Transactions There are two ways to create memorized transactions. The first is to enter the memorized transaction manually. The second is to save a posted transaction as a memorized transaction.
Entering Memorized Transactions You can enter a memorized transaction for later use by selecting an option from the Maintain, Memorized Transactions submenu. Use these steps to enter a new memorized transaction:
• From the Maintain menu, select Memorized Transactions; then select the type of transaction desired.
• Enter a Transaction ID and Description that identifies the transaction.
• Enter the transaction information in the fields. All fields are optional and can be changed at any time.
• When finished, select Save to record the memorized transaction for later use.
Saving Memorized Transactions You can save a posted transaction as a memorized transaction by clicking the drop-down arrow next to the Save button on the transaction toolbar, then selecting Memorize. Use these steps to save a posted transaction as a memorized transaction:
• From the transaction window, select List to display a list of transactions.
• On the list window, double-click the transaction you want to memorize. The transaction displays in the transaction window.
• Click the drop-down arrow to the right of the Save button and select Memorize. The transaction is copied into the Maintain Memorized Transaction window.
• Enter a Transaction ID and Description that identifies the transaction.
• Edit the transaction information in the fields. All fields are optional and can be changed at any time.
• When finished, select Save to record the memorized transaction for later use.
Creating New Transactions You can create new transactions from memorized transactions in two ways. The first is to use the transaction from the Maintain Memorized Transactions window. The second is to select from a list of memorized transactions while using a task window.
Using Memorized Transactions Memorized transactions can be used at any time to create new transactions. Follow these steps to use a memorized transaction:
• From the Maintain menu, select Memorized Transactions; then select the type of transaction desired.
• Enter or select the Transaction ID you want to use.
• Select the Select button.
• Sage 50 Accounting displays the transaction in the corresponding task window. Make any changes needed to the transaction, and post it. Changes made to the transaction will not affect the memorized transaction.
Selecting Memorized Transactions You can select from a list of memorized transactions while using a task window. Follow these steps to select a memorized transaction:
• From the appropriate Task window, click the drop-down arrow to the right of the List button.
• Then click Select.
• Double-click the memorized transaction you want to use.
Advanced Study Guide for Sage 50 US - Edition Lesson 9 – Customizing Sage 50
Copying Transactions Sage 50 Accounting’s Copy Transactions tool lets you easily create a new transaction based on a previously saved one in less time than it would take to create a new transaction from scratch.
Copy a Transaction There are two ways to copy a transaction. You can view the transaction that you want to copy on a transaction screen and then select the Copy button on the toolbar.
You can also right-click on transaction in a list or in a management center section and select Copy this transaction.
Using either method, Sage 50 will instantly display an exact copy of the transaction on the transaction screen. You can then make any changes needed for the new transaction (for example changing the item quantities and the date) and then print or save the new transaction. In the background, a new transaction will be created. No changes will be made to the original transaction.
The following transactions can be copied using the methods outlined above:
• Quotes • Sales Invoices • Purchases
• Sales Orders • Purchase Orders • General Journal Entries
• Proposals
Advanced Study Guide for Sage 50 US - Edition Lesson 9 – Customizing Sage 50
One navigation center, Business Status, displays a variety of general business information, including account balances, revenue amounts, and receivables and payables data. Links to various reports can be found in different panes, and a special area is provided to quickly and easily find a report in Sage 50.
COMPLETE: The Business Center, is available in Sage 50 Complete Accounting and higher.
QUANTUM: The Business Status is part of the “My Dashboard” navigation center in Sage 50 Quantum Accounting and is discussed in more detail in the Using Quantum Features lesson.
To customize the Business Status navigation center, select Customize this page from the toolbar at the top of the window. The following window appears:
Select to Show the various sections, and place them in the Order which corresponds with the layout at the bottom of the window.
Sections can be rearranged by selecting the Move Up or Move Down buttons, and the effect of the layout is shown at the bottom of the window.
Click OK to save the changes.
Advanced Study Guide for Sage 50 US - Edition Lesson 9 – Customizing Sage 50
Below the list of navigation centers on the left side of the Sage 50 Accounting desktop is a list of Shortcuts to various tasks or reports.
By default, Sage 50 adds several common shortcuts. Select the Customize link to display the following window to modify the list.
Select from most tasks, reports or forms to create a unique list of shortcuts to help you more efficiently navigate to your most commonly used areas of Sage 50.
Advanced Study Guide for Sage 50 US - Edition Lesson 9 – Customizing Sage 50
Exercise 9.1 – Setting up a Sales Invoice Layout Goal In this exercise, you will learn how to modify the layout of the sales invoice.
Scenario Bellwether has decided not to use sales reps, and never changes the sales tax code on an invoice; therefore, there is no need to show these fields on the Sales/Invoicing window.
1. On the Customers & Sales navigation center, select New Sales Invoice from the Sales Invoices icon.
2. Click the Layout button on the toolbar, and choose Customize Invoice Layout from the drop-down list.
3. Click the New button.
4. Enter a Template Name of Product.
5. Enter a Description of Product Sales Invoice.
6. Scroll down in the Individual Fields list to Sales Rep.
7. Remove the check in the Entry Screen and Printed Form columns.
8. Remove the check in the Entry Screen column for Sales Tax Code.
9. Click Save, and then OK at the message.
10. Click Close.
11. Click Close on the Sales/Invoicing window.
12. To test the template, select New Sales Invoice.
