Advanced Fund
Management Solutions

November 2006
Hi Everyone,

This month we cover three different ways to make adjustments in your check register. Chances are you'll be using this feature. Learn how to properly record inventory (receiving) when it hits the loading dock, or your desk. You'll learn how the process involves the inventory system and Accounts Payable. As always, if you have any questions regarding an Accufund® issue, please contact me at (318) 253-8556, or email me at jgarv@afmss.com

Thanks,
Judy Garver

Check Register Adjustments

There are at least two reasons to make adjustments to your check ledger: transfers of money from one bank account to another, and corrections to bank statement errors. This article shows how to handle both types of adjustments.

Our first example assumes that the service charge on the bank statement is overstated by $4. It reconciled OK, but we found out about the error after reconciliation. Go to Edit/Bank Register. You will see the form at right. Select the proper bank (we're using Federal Bank, as indicated by the cursor arrow). The click on the "Adjust" button near the lower left portion of the form.

The form below opens:

Choose the correct Activity Date for the transaction. A reference number will be added automatically. There are three types of adjustments. Click on the "Adjustment" radio button. Enter the amount of the adjustment. We will be adjusting an expense account (reducing the bank fee expense with the negative $4 entry). Insert the proper account. An offsetting entry will automatically be made to the bank's cash account. Click on the "OK" button, and the adjustment is recorded.

The adjustment now shows up on the bank reconciliation form, as shown below:

The second example involves the transfer of $1000 from Federal Bank to Enterprise National. Proceed to the Adjustment form as we did in the previous example. Fill in it as shown below:

Note that the "Transfer To" radio button is selected and the Enterprise Bank has been chosen. That means that $1000 will be transferred from Federal to Enterprise. We do not need to provide any accounts because the system knows the banks' cash account number. Click on the "OK" button. This adjustment will show up on the bank reconciliation form-see the image below:

Note the $1000 adjustment (Ref 000004) above. The other radio button ("Transfer From") reverses the flow of money-in this case, the money would have moved from Enterprise to Federal.

It's easy to use the Bank Register adjustment feature. And, unlike doing this with General Journal entries, these transaction are all reportable along with other reconciliation activity (and you'll see it in Ledger and other transaction reports, as well).

Receiving Inventory

An important part of maintaining your inventory is keeping track of the inventory you have on hand. This supports the proper reordering of items and issuance of same. This article demonstrates how to record the receipt of inventory items and to verify their receipt into the system.

First, let's look at an inventory item, Accounting Software. Go to the Inventory item and click on the Browse Inventory item. Double click on the first item, A100, Accounting Software. The form below appears. The arrow cursor is pointing to the number of units on hand (one). Just below, we can easily see that four units are also on order. Now that we know what's in the system and what's on order, let's assume that the delivery truck has just arrived with one unit of ordered software.

Go to Edit/Receiving Documents. The form below opens:

Click on the "Insert" button, as indicated by the arrow cursor. The form below opens:

The vendor for this item is AccuFund-select it from the vendor list. An optional description may be entered in the "Description" field. A department may also be selected for reporting purposes.

There may be more than one order showing in the detail portion of the form ). Highlight the "Qty Received" field on the order that has been received and click on the "Change" button. Enter the quantity of the item that has been in the "Qty Received" field. See the image above.

Click on the "OK" button and then the "Cancel" button.

Before the inventory will be updated, an invoice must be entered to pay for the received item. Go to Accounts Payable/Browse Bills. Click on the "Insert" button and select the vendor. When you do so, you will see the following screen:

The vendor has been selected. Click in the quantity column of the order received, as indicated by the arrow cursor. Using the "Change" button, enter "1" for the received amount. Enter an invoice number, invoice date, activity date, and due date. Enter $3000 for the Amount. Click on the "OK" button. This action has updated the inventory.

Click on the Browse Inventory icon again, and highlight the first item, stock number A100, Accounting Software. Click on the "View" button. The following screen will appear:

As indicated by the arrow cursor, the quantity on hand is now "2" items. Inventory activity reports will also show the increase in inventory.

Did You Know...?

Budget Management. You may make budget entries in AccuFund in two ways: by importing, or by making manual journal entries. If you're used to working in Excel, you can create your budget in it. Then it only takes ten minutes to initially setup the import process to bring those budget numbers in. Of course, if you have few budget accounts, or wish to "tweak" an account's budget, manual journal entries work just fine, too.

General Ledger. If you are setup to use "Tabled Element Values" (where, when entering your account numbers, you select each element value from a drop down list), you may limit what element combinations may be used. This feature is called Value Combinations. For example, you may allow the use of only certain object codes with a certain Fund, or use only certain departments with selected programs. This feature helps prevent someone from posting to the wrong accounts (combination of elements).

General Ledger. Demographics are items into which you may place any information you wish. For example, you could create a demographic called "Cell Phone Issued" and attach it to employees. If a cell phone has been issued, a "Yes" could be entered into the demographic for the appropriate employees. Demographics are typically used for calculations and reporting.