Account Manual

8/7/2019 Account Manual

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SiTE for Construction

Accounting Application

User Reference

Control Number: ACC/REFMAN/0016


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Table of Contents

CONVENTIONS USED IN THIS MANUAL......................................... 4

SPECIAL ICONS ...................................................................................... 4

TEXT OF THE MANUAL ........................................................................... 4

YOUR COMMENTS ARE WELCOME .......................................................... 5

INTRODUCTION................................................................................... 6

CLASSIFICATION OF ACCOUNTS .................................................... 7

ACCOUNT NUMBERING .......................................................................... 7

ACCOUNT CLASSIFICATION ELEMENTS ...................................................7CREATING THE ACCOUNTS CLASSIFICATION ......................................... 16

COMPANIES, PROJECTS AND BOOK-SETS .................................. 19

FINANCIAL YEAR ................................................................................. 19

CARRY FORWARD OF BALANCES .......................................................... 20

BOOK-SETS.......................................................................................... 20

PERIOD CLOSURE................................................................................. 21

GENERAL LEDGER & SUB-LEDGERS............................................ 23

SUB-LEDGERS ...................................................................................... 23

APPROVAL WORKFLOW................................................................. 25

ACCOUNTS APPROVAL DETAILS ........................................................... 26

ACCOUNTS DIRECT APPROVAL.............................................................27

UNAPPROVAL OF VOUCHER.................................................................. 27

CREATING ACCOUNTS..................................................................... 28

BANK ACCOUNTS ................................................................................ 35

ACCOUNTING VOUCHERS .............................................................. 39

VOUCHER STRUCTURE .........................................................................39

VOUCHER TYPES AND SUB-TYPES......................................................... 40CREATING VOUCHERS.......................................................................... 42

VIEWING AND EDITING AN EXISTING VOUCHER ..................................... 48

COPYING AND REVERSING VOUCHERS .................................................. 49

THE ACCOUNTS SEARCH FORM ............................................................ 51

ACCOUNT REFERENCING ............................................................... 52


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AN EXAMPLE TO ILLUSTRATE REFERENCING ..........................................52

USING THE REFERENCES FEATURE......................................................... 54

SYSTEM CREATED ACCOUNTS AND VOUCHERS ...................... 58

PURCHASE AND STORES ....................................................................... 59EXECUTION AND SUB-CONTRACTS ........................................................ 86

CLIENT BILLING................................................................................. 100

FIXED ASSETS.................................................................................... 111

PAYMENT PROCESSING................................................................. 121

AD-HOC PAYMENT PROCESSING ......................................................... 121

PROCESSING PAYMENTS IN CYCLES .....................................................126

PRINTING CHEQUES ........................................................................... 129

BACS TRANSFERS............................................................................. 131

BANK RECONCILIATION............................................................... 134

PETTY CASH ..................................................................................... 137

TRANSFERRING FUNDS TO A PETTY CASH ACCOUNT ............................. 137

MAKING PETTY CASH ENTRIES ............................................................ 138

CREATING THE SUMMARIZED PETTY CASH VOUCHER ...........................139

ACCOUNTING STATEMENTS ........................................................ 141

TRIAL BALANCE / ACCOUNTS SCRUTINY ............................................141

BANK BOOK / CASH BOOK / STATEMENT OF ACCOUNT ....................... 144

MASTER LINK REPORT ....................................................................... 145


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CONVENTIONS USED INTHIS MANUAL

This manual uses different fonts to represent different types ofinformation.

Special Icons

Suggestion: The lightbulb highlights suggestions andpractical tips that could save time, make procedures easier,and so on.

Warning: The warning symbol highlights text that warns youof actions that could be particularly damaging or fatal to your

operations.

Text of the Manual

The following sections describe the conventions used in the text ofthis manual.

UPPERCASE Characters Upper case characters are used toinvite attention to Form andFunction names, commands andfilenames.

ItalicizedCharacters Italicized characters are used to

emphasize important words.


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Your Comments are Welcome

We value and appreciate your comments as a SiTE customer. As we

write, revise, and evaluate our documentation, your opinions are themost important input we receive. At the back of this manual is aReaders Comment Form which we encourage you to use to tell uswhat you like and dislike about this manual or other SiTE manuals.

Documentation Manager

Algorithms Software Pvt. Ltd.

2nd

Floor, Ballard House, Adi Marzban Path,

Ballard Estate, Mumbai 400001, India

E-Mail: [email protected]


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INTRODUCTION

This manual describes the functional aspects of the SiTE accountingapplication. It contains usage guidelines for the routine functions tobe performed through SiTE as well as the integrated functioning withthe other applications.


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CLASSIFICATION OF

ACCOUNTS

Before any accounting can be done in SiTE, the classification ofaccounts must be specified. The classification is common across thecompanies defined in SiTE and forms the basis of all consolidation.The classification is also used as an automated mechanism to assignnumbers to individual accounts.

Account Numbering

SiTE provides a numbering scheme, which can be custom configuredat the time of the classification. The maximum width of the accountnumber is 10 digits. Thus, user may choose a numbering scheme upto 10 digits or lower. Depending on the accounts classification andthe numbering scheme defined, SiTE automatically assigns accountnumbers on creation.

Account Classification Elements

The accounts classification is essentially a structure to logically groupvarious accounts. The classification is defined as a hierarchical treestructure together with the numbering scheme to be followed foraccounts created under a particular group.

The classification scheme defined must be consistent with the waythe Balance Sheet and Profit and Loss account is generated.

Typically, at the root level of the classification, there will be fourclasses:

Asset (Application of Funds)

Liability (Sources of Funds)


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Income

Expense

All classes and accounts under the Asset and Liability class wouldconstitute Balance Sheet accounts and those under Income andExpense would constitute Profit and Loss Accounts.

Each of these may further be broken down into sub-classes and atree can be generated.

For Example, the class Liability may be broken down as follows:

Liability (1000000 1999999)Shareholders funds (1100000 1199999)

Total share capital (1110000 1119999)Equity share capital (1110000 1119999)

Reserves and surplus (112 0000 1129999)General reserve (1121000 1121999)Capital reserve (1122000 1122999)Investment allowance reserve (1123000 1123999)Foreign project reserve (1124000 1124999)Profit and loss a/c (1125000 1125999)

Loans funds (1200000 1299999)Secured loans (1210000 1219999)

Bank overdraft (1211000 1211999)

Term loans (1212000 1212999)Hire purchase loans (1213000 1213999)Unsecured loans (1220000 1229999)

Inter-corporate deposits (1221000 1221999)Loans from shareholders (1222000 1222999)Non-convertible debentures (1223000 1223999)Loans - financial institutions (1224000 1224999)

To complete the same, several other sub-classes need to be addedin line with the corporate requirements. Such a breakdown must beprovided for Asset, Income and Expense accounts also. .

The classification consists of Terminal and Non-terminal elements.Terminal Elements are those classes, which have no further sub-classes and non-terminal are those which do. In the example above,Total share capital is a non-terminal element and Equity ShareCapital is a terminal element. Accounts can be created only underterminal elements.


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The numbers in the brackets represent the numbering scheme to befollowed. In the example above, a seven-digit numbering scheme isused. Thus, a one in the seventh position indicates a liability account.All accounts, which are created under any of the terminal elements

under the Liability class, will have a one in the seventh position.

In this manner, a range can be sub-scoped as one goes down thetree.

The advantages of a numerical nested account code structure are:

q All reports such as Trial Balance, etc. can be viewed for selectedaccounts by specifying a start and end account number range

q From the code, the position of the account in the classificationcan be known immediately.

q While entering the account number, the user would not have tomemorize the entire code.

Account Class Type

In order that SiTE meaningfully validate and interpret the accountsclassification, the classes that one creates, must be tagged by atype.

The following table provides the class types supported:

Class Type Description Mandatory

Asset / Liability /Income / Expense

These are the root classes. They arerequired for Balance Sheet and P&Lstatement presentation.

Root Classes are those classes occurringat the outermost level.

Yes

Current Assets

Current Liabilities andProvisions

In the Balance Sheet, Current Liabilitiesand Provisions are subtracted fromLiabilities and added into Current Assets.Thus, SiTE needs these classes to beidentified.

Yes


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Bank (Assets andLiabilities)

Bank accounts need to be earmarked forthe following reasons:

Bank Reconciliation

Ensuring that at least 1 bank accountis selected in a Money Receipt andBank Payment Voucher.

Ensuring that bank accounts are notselected in vouchers other thanMoney Receipt Bank and PaymentVoucher Bank (such as JournalVouchers)

Cheque Printing / BACS Transfers

Generation of Cash Flow Reports

Generation of Bank Book highlightingthe Receipts and Payments for aBank Account

Scrutinizing the Receipts and orPayments transaction wise in TrialBalance Report

Yes

Cash Cash accounts need to be earmarked forthe following reasons:

For use in the Petty Cash sub-module

Ensuring that at least 1 cash accountis selected in a Money Receipt andCash Payment Voucher

Ensuring that cash accounts are notselected in vouchers other thanMoney Receipt Cash and PaymentVoucher Cash (such as Journalvouchers)

Generation of Cash Flow Reports

Generation of Cash Book Reports

Summarizing all Balances acrossCash Accounts

Yes


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Scrutinizing the Receipts and orPayments transaction wise in Trial

Balance Report

Profit and Loss When a class is marked with this type, anaccount for the Profit and Loss carriedforward is created by SiTE automatically.

This system created account is used forenabling carry forward of the profit andloss amount (i.e. the difference betweenthe closing balances of the Income andExpense accounts) into the next financialyear when a new set of books is opened.

The Profit and Loss class will normally fall

under Reserves and Surplus.

Note: Users can also create their ownaccounts under this class for yearly profitand loss. The system created accountshould not be used for user createdentries.

Yes

Liability TDS(Withholding tax at thepoint of payment)

TDS is Tax Deducted

as Source

For use in the TDS sub-module. SiTEtracks TDS deductions and the generationof certificates for deductions made againstTDS for vendors and subcontractors.Individual accounts must be created for

each TDS section under this class.

No

Asset TDS For tracking of TDS certificates to bereceived from the client.

No

Depreciation In the Profit and Loss statement, Profitbefore Depreciation and Tax (PBDT) is tobe shown. Thus, Depreciation is markedout to enable the system to excludebalances for accounts present under thisclass while calculating the PBDT.

Yes

Income Tax In the Profit and Loss statement, Profitbefore Depreciation and Tax (PBDT) andProfit Before Tax (PBT) is to be shown.Thus, Income Tax is marked out to enablethe system the exclude balances foraccounts present under this class whilecalculating the PBDT and PBT.

No

Appropriation In the Profit and Loss statement, Profit No


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before Depreciation and Tax (PBDT),Profit Before Tax (PBT) and Profit AfterTax (PAT) are to be shown. Thus,

Appropriation is marked out to enable thesystem the exclude balances for theaccounts present under this class whilecalculating the PBDT, PBT and PAT.

Fixed Asset OpeningBalance

When a class is marked with this type, asingle account is created by SiTEautomatically for facilitating the OpeningBalances for the Gross Block, This contraaccount must be nullified against eachasset in the Fixed Assets Module to floatinto Accounts by way of the followingJournal Entry: -

Fixed Asset (Name of Fixed Asset in FixedAsset Master) A/c Dr

Fixed Asset Opening Balance a/c Cr.

Yes

Depreciation OpeningBalance

When a class is marked with this type, asingle account is created by SiTEautomatically for facilitating the OpeningBalances for Accumulated Depreciation.This contra account must be nullifiedagainst each asset in the Fixed AssetsModule to float into Accounts by way of thefollowing Journal Entry: -

Fixed Asset (Name of Fixed Asset in FixedAsset Master) A/c Dr

Depreciation Opening Balance A/c Dr

Provision for Depreciation (Name of FixedAsset in Fixed Asset Master) A/c Cr.

Thus ensuring that the Opening balancesin Fixed Assets Register are tied up withthe Accounting System.

Yes

VAT Payable Creates a single Account for a Company

and sets the system to book the amount ofVAT which has been impacted from theother Associated modules likePurchase/Subcontractor Module, resultingin tracking VAT Account in an integratedenvironment.

Yes


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Presentation Parameters

Since SiTE automatically generates the Balance Sheets and Profit

and Loss statements based on the classification of accounts,presentation information must be tagged to the various classes.

In this process, the user must identify which classes will appear inthe Balance Sheet and Profit and Loss statements, the classes whichwill appear in the schedules to these statements and those that mustbe used only for calculations.

SiTE provides three tags to do this:

Main

Schedule

Ignore

It also provides a field called the Schedule No.

To generate the Balance Sheet and P&L statement, SiTE displays allthe classes marked with the tag Main. The following logic applies:

Class marked as 'Main' and Tagged with No Schedule Number

Balance Sheet or Profit and Loss statements will show this Classalong with the Sum of Balances of All the Accounts present under the(Terminal) class marked as Main or all the Accounts under TerminalClasses present under the (Non Terminal) class marked as Main.

Class marked as 'Main' and Tagged with Schedule Number

Balance Sheet or Profit and Loss will show the Class along with theSum of Balances of All the Accounts present under the (Terminal)


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class marked as Main or all the Accounts under Terminal Classespresent under the (Non Terminal) class marked as Main.

Further, the Schedule report will give breakup of Class wise Balance

of Classes marked as Schedule and which are present under theClass marked as 'Main'

Sub-classes under a non-terminal class marked as Main with aschedule number can only be marked as a Schedule or Ignore.Marking a class as schedule will instruct SiTE to display its balancein a schedule to the Balance Sheet or P&L statement. The amountfor the class will be calculated as the summation of all the balancesfor accounts under the class and its sub-classes.

Marking a class as ignore is interpreted by SiTE to use the accountsfalling under it only for balance summation, but not to be displayed inthe main statement or any of the annexed schedules.

The following rules are imposed by SiTE while marking classes:

Classes can be marked as Main only if the parent class is also a Main class. (Ifthe parent is not in the Main Balance Sheet / Profit and Loss Statement, then thechild cannot be shown in it).

Classes can be marked as Schedule only if the parent class is a Main class for

which a schedule number has been entered or if the parent class is in theschedule.

Classes can be marked as Ignore in all cases except for root classes or if theParent Class is a Main with a Schedule Number

Classes at the same level should be marked in the same manner i.e. all childrenof a class must be of the same type.

Master Link Type

The master link feature enables SiTE to sum balances of variousaccounts belonging to a single party across different AccountClasses.

The master link facility is available for the following masters, whichare present in the various other applications of SiTE:


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Sub Contractor

Vendor

Vendor (/ Subcontractor) Group

Employee

Client

Banks

Fixed Asset

To explain the advantage of the Master Link facility, consider thefollowing examples:

1. Bank: A company has various bank accounts in the same bank.To know the total balance with the bank, users would have tosum the individual account balances manually. The master linkfacility allows users to view the cumulative balance in a singlereport.

2. Employees: An employee can have many accounts SalaryPayable, Loans, Travel Advances, etc. The master link reportshows the total amount payable / receivable across accounts(under different classes) for the employee.

3. Subcontractors: A subcontractor could have a sundry creditoraccount, mobilization advance account, retention account,material recovery account etc. By linking these accounts to the

subcontractor, the system can show the total balance for thesubcontractor.

On marking a class as master link, the system will ask the user to linkaccounts created under the class to an entity in the master selected.For example, accounts created under a class marked as master link


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Sub-contractor would have to be linked to a particular sub-contractor in the subcontractor master. When a class is marked formaster link, a linkage to the appropriate entity becomes mandatory.

For example, if a particular class is marked as Sub-contractor thensite stipulates that all accounts are created under that class, arerelated to sub-contractors. Thus, it will not permit the creation ofaccounts of a general nature.

Using the master link type, multiple accounts can be created for aparticular entity and accounting statements can be viewed for aparticular entity.

One can view a consolidated statement of account considering all

advance, recovery, creditor accounts, which have been created.

Creating the Accounts Classification

An understanding of the concepts presented above are crucial to thecreation of a proper accounts classification. To actually create theclassification, the Accounts Classification form is used which isinvoked by the sequence Masters -> Accounts Classification.

In this form, the tree structure is displayed in the section below thedata entry panel. Initially this tree will be blank and the user mustcreate it from the scratch.

To create classes and sub-classes, the following information must beentered:

Field Description Special Notes

Account Class Name The name of the class is defined inthis field.

Add at root If the class must be entered at the rootlevel, then this check-box must bemarked. If it is not marked then theclass will be created as a sub-classunder the selected class in the treeoutline below.

SiTE automatically picksup the Start and Endseries for the accountnumber from the parentclass.


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Start Series From The start point for numbering ofaccounts under this class is entered

into this field.

The system will automatically assignthis number to the first accountcreated under a class and thesubsequent account numbers will beincremented by 1. A maximum of 10digit series can be specified.

End Series At The end point for numbering ofaccounts under this class, is enteredinto this field. The system will not

create accounts under a class forwhich the series has been exhausted.A maximum of 10 digit series can bespecified.

The following rules areenforced by SiTE in

respect of the Start andEnd Series:

The series cannotoverlap withanother series atthe same level

Series for a childrecord must fallwithin the series forthe parent

The series can beextended if there isno overlapping withclasses at thesame level.

The start of theseries can bemodified only ifthere are noaccounts created inthe class.

Account Class Type The class type as described in thesection above is selected from thedrop down list.

Account Class to beprinted on

A Presentation Parameter asdescribed in the section above isselected by choosing the appropriateitem.

Schedule No If the class is to be presented in aschedule, then the schedule numbermust be specified in this field. (Refersection Presentation Parametersabove)


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Master Link Type If the class must be defined as amaster link, the particular master link

must be selected. Otherwise, theGeneral option must be selectedwhereby no master link will berequested for accounts being createdunder the class.


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COMPANIES, PROJECTSAND BOOK-SETS

SiTE supports multi-company and project level accounting. While theclassification is defined across companies, individual accounts andentries are defined for a particular company. Furthermore, each entryin SiTE is tagged with a project and cost centre (see chapter DefiningCost Centres in the Masters manual).

The Companies for which accounting is to be performed in SiTE, areentered in the Company Master. Various projects, which are createdin the project management system, are automatically available forselection in the accounting system by virtue of the integration.

Financial Year

Central to the accounting system is the creation of a Financial Year(also known as the Fiscal or Accounting Year) in the system. TheFinancial Year is defined in the Financial Year master which can be

invoked by the sequence Masters -> Financial Year.

To define a financial year, the following information must be entered:


Financial Year Name A descriptive text describing thefinancial year is entered in this field.

For example, 2001 2002

Start Date The date on which the Financial Yearbegins is specified in this field.

For Example,1/April/2001

End Date The last date of the financial yearbeing defined is entered in this field.

For Example31/Mar/2002

A relevant financial year must be present for transactions to beentered in the system for the specified period.


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Carry Forward of Balances

SiTE automatically carries forward the balances between financial

years. It conducts the carry forward for all Assets, Liability accounts,and the net of Income and Expense account is carried forward in anaccount called Carry forward which is system-created.

Book-sets

SiTE maintains book-sets at two levels: Company and Project. Thusfor each company SiTE maintains a book-set for each financial year.Within the book-set for the company, book-sets for each project

linked to the company, are created.

SiTE automatically creates the book-sets when a company or projectis accessed the first time at the point of login. The first time acompany is accessed for a particular financial year, a CompanyBook-set is created. Likewise the first time a project is accessedwithin the company book-set, the project book-set is automaticallycreated. (See section The Accounts Login)

At the time of the creation of a book-set, SiTE requests the user to

select a Voucher Numbering scheme. SiTE supports two types ofnumbering schemes:

Numbering Scheme Description

Monthly In this scheme, the voucher numberingis initialized for every month to 1 foreach voucher type and project (seesection Accounting Vouchers). ForExample, for the first month thenumber is constructed asYear+Month+Sequence No: 2002011,2002012 and so forth


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Numbering Scheme Description

Yearly In this scheme, the voucher numberingis initialized for every year to 1 for

each voucher type and project (seesection Accounting Vouchers). ForExample, for the first month thenumber is constructed as Year+Sequence No: 20021, 20022 and soforth

If at the point of access, the numbering scheme is not decided, theuser can select the Not Decided option. However, if this option isselected, no vouchers can be created.

SiTE automatically does the carry-forward of the closing balances ofthe preceding financial year book-set into the next book-set. At anypoint of time, any number of book-sets can be open. Entries will bepermitted so long as a book-set is not closed.

Period Closure

In SiTE, accounts for a financial year can be closed up to a particulardate within the financial year. SiTE also enables closure of accountsat the individual project book-set level.

The logic followed is simple. Each project book-set is closed for aspecified period. Once all the project book-sets are closed, thecompany book-set for the period is considered closed.

However, a company book-set can be closed only for a particularfinancial year and that too only after the financial year end date isreached. When this is done SiTE automatically closes all the projectbook-sets for that company for the financial year.

To conduct a period closure for a project book-set, the Project Book-set form is used and can be invoked by the sequence Company /Project Masters -> Project Book-set.


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GENERAL LEDGER &

SUB-LEDGERS

SiTE provides an architecture whereby a single General Ledger isautomatically created for each company and various subsidiaryledgers can be created as sub-ledgers.

All accounts which are created, by default go into the general ledgerunless belong to a class linked to a sub-ledger.

In SiTE, an unlimited number of sub-ledgers can be defined basedon the companys needs. Since control accounts for the sub-ledgersare automatically created and updated based on the transactions,this feature helps create concise statements on the general ledger.

Only Terminal Account Classes can be marked as Sub-ledgers sinceAccounts are created under a Terminal Account Class.

Details can always be drilled down in the sub-ledger.

Sub-ledgers

Sub-ledgers are defined for each company separately. Sub-ledgerscan be defined for a particular class in the accounts classification.Marking a class as a sub-ledger indicates that the accounts underthat class will be represented by a single control account (called asthe sub-ledger control account) while viewing the General Ledger.This ensures that the general ledger reports do not display too many

accounts.

All accounts will appear under the General Ledger unless a particularclass is marked as a sub-ledger whereby all accounts falling under itor its sub-classes will be summarized to a control account. Reportscan also be viewed separately for each sub-ledger.


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Account classes at the lowest level only can be marked as subledgers. Once an account has been created under a particular class,it cannot be marked as a sub-ledger subsequently.

To create sub-ledgers the Sub-ledger Master form must be usedand it can be invoked by the sequence: Masters -> Sub-ledgerMaster.

To create a sub-ledger an account class is selected and the name ofthe sub-ledger is specified. On posting the record, SiTE automaticallycreates a Control Account for the sub-ledger in the general ledger.

Companies normally create creditors and debtors sub-ledgers in their accounting systems. Sub-ledgers can also be

effectively used for tracking details of accounts such astelephone, rent, car expenses, etc. For e.g. if a company has takenmany houses on rent, one account is created for each house in asub-ledger. This ensures that only one account for all rentalexpenses is shown in the trial balance but all details are availablehouse-wise when required by scanning the sub-ledger.

All transactions (debits and credits) passed for an account belongingto a sub-ledger will be reflected in the control account of the sub-ledger. This allows the user to view either the control account or all

the detail accounts in the Trial Balance.


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APPROVAL WORKFLOW

Vouchers created have to go through approval to ensure properauthorization and checking. Only approved entries will appear in thebalance sheet and profit and loss account.

For approvals to function, the approval configuration must bespecified first. This is done in the Accounts Approval form which is

invoked by the sequence General Masters -> Accounts Approval.

In this form the approval rights can be given to a user for thefollowing types of vouchers and transactions:-

Company book-set closure (for company bookset closure the right will be given toa person from location HO only.)

Project bookset closure

JVC Journal Voucher

MRC Money Receipt Cash

PVB Payment Voucher Bank

PVC Payment Voucher cash

PJV Purchase Journal Voucher

SJV Sales Journal Voucher

Petty Cash

To grant an approval right, the insert button is clicked and a vouchertype / document type is selected. The name of the user being giventhe right can be selected by clicking on the adjacent button. Thelocation for which the user will have rights on approval is selected byclicking on the button adjacent to the field Location. The location isthe location as selected in the log in form.


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Thus, a user might have logged in from project A (i.e. location isproject A as per log in form) and made entry in the books of project B(location in the voucher master), then in the approval form the projectwill be project B and the Location will be project A

Next, the approval sequence number for the user being given theapproval right must be specified. This is a mandatory field. More thanone user can be given the same approval number in which case thevoucher will be approved when either of the approver at the samelevel has approved a voucher. Only when the voucher is approved bythe highest level of approver will the status of the voucher changefrom Saved to Approved.

The Approval amount field indicates the amount up to which a

person has right to approve a particular transaction. This is amandatory field while giving rights to all payment vouchers (bank orcash or petty cash) and Purchase bill vouchers (PJV). If the voucheramount is less then the approval limit of the user then the voucherstatus will remain as partly approved even if he is the highestapprover. Thus, when the approval level number and the approvalamount conditions are fully satisfied then the status of the voucherwill change from Saved to Approved.

The Approval amount will be compared with the total debit or credit ofthe voucher. Only if the approval amount is greater then the total

debits or credits of the voucher will its status change to approved.

Once the approval workflow has been setup, Approvals can be donein either one of the two forms.

Accounts Approval Details

All the vouchers will appear in this form, which have been queued tothe user based on the sequence. Once the user approves a voucher,

SiTE checks the approval workflow defined and if required, queues itto the next user in the sequence.


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Accounts Direct Approval

In this form an approver can see all vouchers which are pending for

approval even including those vouchers which have been queued tousers at a approval level below his. The can directly approve thevoucher and thus not wait for approval from approver at a lowersequence level.

Unapproval of Voucher

A voucher can be modified or deleted only if it has not beenapproved even partly. Thus to modify or delete a voucher which has

undergone partial or final approval, it must be unapproved. Aftermodification, the voucher has to be approved again by each of theusers in the specified sequence. Only those users empowered withthe highest level of approval for a voucher type, can unapprove avoucher.

Furthermore, a document can be unapproved only if the followingconditions have not occurred:

A Cheque has been printed

Bank reconciliation has been done

References adjustment has occurred

Carried forward to next financial year for the transaction


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CREATING ACCOUNTS

Once an Accounts Classification is defined, accounts can be createdfor a company. Due to the integrated architecture of SiTE, manyaccounts are system created. However, many accounts will be usercreated.

To create an account in SiTE, the Account Creation form is usedand is invoked by the sequence Company / Project Masters ->Account Creation.

For an account, there is some general information that is capturedregardless of the type and nature of the account. For some types ofaccounts such as bank accounts etc., additional information isrequired.

The following general information is entered while creating anaccount:


Account Class The class under which the accounthas to be created is selected byclicking on the adjacent button.Clicking on this button invokes theAccounts Classification pick form fromwhich an appropriate class can beselected.

Only terminal classescan be selected.

Ledger On selecting a class, SiTE displayswhether the account will be created inthe General Ledger or a Sub-ledger.

Sub-ledger Name If the account is to be created under asub-ledger then the name of the sub-

ledger is displayed in this field.Otherwise it will be blank.

Account Name The name of the account to be createdis entered in this field.


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Account Number SiTE automatically assigns an accountnumber depending on the series

definition for the class. It automaticallygenerates it as the maximum numberalready allocated within the series plus1.

Account Creation This is a display only field. It indicateswhether the account has been createdautomatically by SiTE or manually bythe user.

Opening Date This is the date from which voucherscan be posted to the account.

Closing Date This is a display only field. If anaccount has been closed through theAccount Closure form, then theeffective date of closure is displayed inthis field.

Depending on the class selected, SiTE may request additionalinformation about the behaviour of an account. Given below are theconditions leading to additional information being requested:

Condition Field Requested Description

The class selected has aMaster Link Type of thetype Vendor

Vendor The user must select a vendor forwhom an account is to be created.

Only one account by the same namefor a selected vendor may becreated.


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System Account ID This field is optional. If a systemaccount ID is not linked, SiTE will

not be able to automatically createvouchers based on transaction in thePurchase and Stores Application.

For this master link type only onesystem account id may be linkedand that is ID: 115 Vendor partyaccount.

Each Entity in the Master can belinked to one System ID and thesame combination cannot beduplicated.

Factor If the vendor specifies that thepayment to be made to him isthrough a factor, the factor isselected by clicking on the adjacentbutton. The factor must beregistered in the factor master.

Bank Sort Code The Sort Code of the Vendors bankaccount is entered in this field. If afactor is specified, this field isirrelevant.

Bank Account Number The Account Number of the Vendors

bank account is entered in this field.If a factor is specified, this field isirrelevant.


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The class selected has aMaster Link Type of the

type Sub-contractor

Sub-contractor The user must select a sub-contractor from the Sub-contractor

master, which is used by theExecution application to create andadminister sub-contracts.

The user may need to create varioustypes of accounts linked to a sub-contractor. For example, Party(Creditor) Account, RetentionAccount, Advances Account etc. Bycreating these accounts and linkingthem to a sub-contractor, one cancreate accounts for a particular sub-contractor across different accountclass types.

For example, the party and retentionaccounts are Liability accounts. Theadvance to sub-contractor accountwill be an asset account.

System Account ID This field is optional. Selecting asystem account id, instructs SiTEhow to interpret the linkage forautomated accounting.

SiTE will display those systemaccount ids whose Option isselected as Sub-contractor in theSystem Account Master form.

Different types of accounts can becreated for a sub-contractor and thisis explained in greater detail in thesection System Created Accountsand Vouchers

Factor If the account is a party account, andthe sub-contractor specifies that thepayment to be made to him isthrough a factor, the factor isselected by clicking on the adjacent

button. The factor must beregistered in the factor master.

Bank Sort Code The Sort Code of the Sub-contractors bank account is enteredin this field. If a factor is specified,this field is irrelevant.


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Bank Account Number The Account Number of the Sub-contractors bank account is entered

in this field. If a factor is specified,this field is irrelevant.

The class selected has aMaster Link Type of thetype Employee

Employee The user must select an employeefrom the Employee master, which isused by the Payroll application.

The user may need to create varioustypes of accounts linked to anemployee. For example, SalaryPayable Account, AdvancesAccount, Loan Account etc. Bycreating these accounts and linkingthem to an employee, one can

create accounts for a particularemployee across different accountclass types.

For example, the salary payable andaccount is a Liability account. Theadvance to employee account will bean asset account.

System Account Id This field is optional. Selecting asystem account id, instructs SiTEhow to interpret the linkage forautomated accounting.

SiTE will display those systemaccount ids whose Option isselected as Employee in theSystem Account Master form.

Different types of accounts can becreated for an employee and this isexplained in greater detail in thesection System Created Accountsand Vouchers

Bank Sort Code The Sort Code of the employeesbank account is entered in this field.

Bank Account Number The Account Number of theemployee bank account is entered inthis field.


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A class whose accountclass type is Expense is

selected

Cost Type In this field, the user must indicatewhether the entries must be

considered as Direct Costs orIndirect Costs in the costingsystem.

Multiple Expense Accounts can belinked single Indirect Cost in theIndirect Cost Master.

For entries made directly in theledger or sub-ledger which do notoriginate from any of the baseapplications, this field instructs thecosting application whether theaccounting entries therein must be

considered towards direct cost of aproject or indirect costs.

In the SiTE costing application,these entries are automaticallypulled in to generate costingstatements.

Direct. This indicates that thetransactions posted into theseaccounts are against activities(BoQ). In the costing modulethese amounts can beapportioned to multipleactivities.

Indirect. This indicates thattransactions posted into theseaccounts are against IndirectCosts such as Rent, Electricity,Travel, Insurance, etc. They arenot attributable to activities(BoQ) and have to be trackedagainst the budget assigned tothe Indirect costs.


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Cost Name If the type of cost is Indirect Cost acost head from the Indirect Cost

Master must be selected.

In the SiTE costing application,budgeting is done even for indirectcosts. Mostly these costs will berecorded directly in the accountingapplication and will not accrue fromany of the base applications.

Using this linkage, SiTE calculatesthe cost to date for indirect costs bypicking up the entries from accountslinked to the indirect cost heads.

A class whose accountclass type is Cash isselected

Petty Cash Account (Yes /No)

Yes. Marking an account as apetty cash account indicatesthat the petty cash sub-moduleshould be made active for thisaccount. The Petty cash sub-module allows cash entries tobe made in a separate set ofbooks in a 2 columnar format.Refer to the chapter on Petty

Cash Book for further details.This option is generally used forCash accounts at sites as theseneed approval before they areposted into the main accountbooks.

No. Selection of this optionindicates that the Petty CashModule will not be used for thisaccount. The cash entries forthis account will be madedirectly into the main books ofaccount. This option is

generally used for the MainHead Office Cash Account.

Petty Cash Limit (enabledonly if Petty Cash Account= Yes)

This is the maximum value of asingle transaction in the petty cashbook.


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Petty Cash Location(enabled only if Petty

Cash Account = Yes)

This field indicates the project towhich the petty cash account

belongs. The same location (Project)can be linked to more than one pettycash account, i.e. multiple petty cashaccounts can be maintained at alocation (project).

This is used for security purposes sothat cash accountants can view thecash accounts only for their sites.Hence whenever a user logs into aparticular project only the petty cashaccounts of that project will beshown.

Bank Accounts

Bank accounts cannot be created through the Account Creation form.There is a separate form called Bank Accounts, which must be used.This is done to facilitate the following:

Cheque Printing / BACS Transfers

Bank Reconciliation

Tracking of Overdraft Limit and its utilization

Master link report for a bank

To ensure that at least 1 bank account is selected in aMoney Receipt and Payment Voucher Bank

To ensure that bank accounts are not selected in vouchersother than Money Receipt Bank and Payment Voucher Bank (such as Journal Vouchers)


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On posting a record in the bank account master, an accountis immediately created by the system in the account master.

This account cannot be edited or deleted from the accountcreation form.

The Bank Accounts form can be invoked by the following sequence:Company/Project Masters -> Bank Accounts. To create a bankaccount, the following information is entered:


Bank and Branch The bank and branch in which thebank account has been opened can beselected from the Bank and Branchmaster.

Account Class On saving the record in the bankaccount master, an account is createdin the account master. The accountclass under which the account shouldbe created should be selected. Onlyaccount classes at the lowest level forwhich accounts have not been createdand which are of the type Asset Bankor Liability Bank can be selected.

Bank Account Name andType

On saving the record in the bankaccount master, an account is createdin the account master. The name ofthis account is copied from this field.Thus the name by which the accountshould be entered in this field.

Bank Account Number The field stores the account numberprovided by the bank.

SiTE automaticallycreates an account inthe system which is builtby the concatenation ofthe Bank Name, BranchName, Bank AccountName and Type,Account Number.

Bank Sort Code The sort code of the bank and branch

is stored in this field.

Bank Account Description A text field used to store descriptiveinformation about the bank account.


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OD (Overdraft) Facility If the bank offers OD for this account,the option selected should be Yes.

This will allow the user t enter the ODLimit for the bank account.

OD (Overdraft) Limit The OD Limit agreed to by the bankcan be entered in this field. This ODlimit will be shown in the Trial Balancealong with the available funds(Overdraft Limit - Closing bankbalance).

Cheque Printing This field indicates if cheques are tobe printed from SiTE for Payment

Vouchers from this bank account. Thisfield will enable the Cheque Printingsub-module

If cheque printing is enabled for a bank account, then the cheque-printing format for the specific bank account must be defined usingthe following fields:


Cheque Height (inch) The height of the cheque leaf is

specified in this field.

Cheque Width (inch) The width of the cheque leaf isspecified in this field.

X and Y co-ordinates ofindividual fields (ininches).

The start and end points on the X-axisand the point on the Y-axis can bedefined for each individual field. Thefields for which the co-ordinates are tobe defined are:

Line 1 (1st

row of Payee)

Line 2 (2nd

row of Payee)

Line 3 (1st

row of Amount in words)

Line 4 (2nd

row of Amount in words)

Line 5 (Date)

Line 6 (Amount figures)

A graphic of the chequeis presented on the formto describe the locationof each line.


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Copy Cheque Printing Format From (BankAccount)

SiTE requires the dimensions and positions of fields on the cheque tobe entered for a bank account. If there is a common cheque formatacross bank accounts (for e.g. a bank has issued common formatsfor various accounts held in the bank), users may want to copy thedimensions and positions defined for a bank account to other bankaccounts. The Copy feature allows users to select he bank accountfrom which formatting information of the cheque is to be copied.

Clicking on the copy button enables the user to select a bankaccount for which a cheque specification has already been defined.SiTE will copy this definition to the current entry.

On registering the entry by clicking of Tick Button the system willprompt Bank Account Opening Date and the user will enter the Dateon which the selected Bank Account was / is to be opened.


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ACCOUNTING VOUCHERS

Vouchers are the primary mode of input in the accounting system.Accounting entries created through vouchers impact the books ofaccounts.

In SiTE, there are two kinds of vouchers:

System Created

User Created

System Created vouchers are those, which SiTE automaticallycreates for transactions occurring in the other applications in anintegrated environment. For example, when there is an Item ReceiptNote into the Store, SiTE automatically creates a voucher to book theprovision entry and update stock.

This section describes the usage of the user created vouchers.

Voucher Structure

A voucher in SiTE consists of two parts, the Header and the Detail.The header section defines the voucher as an entity in the system.Within a voucher, there can be many lines debiting or creditingdifferent accounts. These lines are entered in the detail section.Vouchers are always created for a particular company and financial

year.

For a voucher, SiTE ensures that Debits always match Credits beforeit is posted to the books of accounts.


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Voucher Types and Sub-types

SiTE differentiates the transactions in the books of accounts by

means of Voucher Types. Each voucher must have a voucher typeselected. SiTE provides the following types of vouchers:

Voucher Type Voucher Description Usage

MRB Money Receipt Bank Booking Bank Receipts

MRC Money Receipt Cash Booking Cash Receipts

PVB Payment Voucher Bank Booking of BankPayments

PVC Payment Voucher Cash Booking of CashPayments

PJV Purchase Journal Voucher Booking of bills raisedby creditors (vendors /subcontractors)

SJV Sales Journal Voucher Booking of bills / invoices raised by thecompany on clients

JVC General Journal Voucher Booking of any otherentries (other than thoselisted above) For e.g.:Depreciation, provision,reversal, etc.

For each of the voucher types provided above, users can definevarious sub-types. A sub-type called Gen is automatically createdby SiTE.

Subtypes provide users with an additional method of sortingvouchers within a type. The advantage of using voucher subtypes isdemonstrated using the following examples:

A subtype of a General Journal Voucher can be created tobook Provision entries made during period closure (such as


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monthly / yearly closure). These entries are normallyreversed at the start of the next period. Creation of a newsubtype allows the user to easily identify and select thesevouchers for reversal at the start of the next period.

Bounced Cheques received from clients are booked throughPVBs as they credit the bank account. These vouchers canbe booked as a new subtype under Payment Voucher Bankso that they can be easily distinguished from actualpayments.

Prepaid (post dated) cheques can be booked and trackedthrough a separate voucher subtype under the type PaymentVoucher Bank.

Numbering of vouchers is based on the voucher type. Thusthe voucher numbering will start from 1 for each type ofvoucher. Numbering is across subtypes.

To create a voucher sub-type, the Voucher Sub-types form must beused which is invoked by the sequence: General Masters -> VoucherSub-types.

To create a sub-type the following information is entered:


Voucher Sub-type A user defined alphanumeric code ofthree characters is defined in this field.

This field cannot beedited. The code shouldbe unique for a vouchertype.

Default Type A voucher sub-type can be set as thedefault for each type of voucher. Thisvoucher sub-type will be selected bySiTE when its voucher type is selectedin the Voucher Master form unless

explicitly changed by the user.

Remarks The description / usage f the subtypeis entered in this field.


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Thus, the combination of a voucher type and sub-type can be used toindicate the kind of entries contained in the voucher. Certain sub-types are created by default by SiTE in order to perform integratedaccounting. These are used to segregate the different types of

transactions in the base applications for which an accounting effect isbeing recorded.

These system created sub-types cannot be edited or deleted. Formore details on this see section System Create Accounts andVouchers.

Creating Vouchers

To create accounting vouchers manually, the Voucher Master form isused, and it can be invoked by the sequence: Voucher Master.

When this form is invoked, the Company, Location and FinancialYear is automatically picked up based on the information specified atthe time of login. The Location is picked up as specified in theVoucher Master and links the voucher to the Project Book-set.

First the type and sub-type of the voucher to be created is selected inthe uppermost panel on the form, and the date of entry of the

voucher is entered.

In the section Voucher Master the header section of the voucher isentered. This includes the following general information:


Voucher Date The date of the accounting voucher isentered in this field. SiTE by defaultpicks up this date from the Date ofEntry specified in the uppermostpanel.

Description A narration applicable to the voucherin its entirety is entered in this textfield.


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Depending on the type of voucher selected, certain other informationis requested by SiTE, which is given as follows:

Voucher Type: PVC


Paid By / To In case of a cash payment voucher,the account being debited may not bean external party. For example, for asmall cash payment, the ExpenseAccount will be debited and the cashaccount will be credited. However, thecash may be paid to an external party.The name of this part is entered in thisfield for information and referenceonly.

Voucher Type: PVB


Payment Status At the time of entry, one of thefollowing can be selected:

Cheque to be Printed. Thisindicates that a cheque must beprepared and printed for thepayment voucher.

BACS Transfer. This indicatesthat the payment specified in thevoucher is to be transferred byBACS.

If the entry is being made for atransaction that has already occurredand the cheque or BACS transfer doesnot have to be effected, then the otherstatuses must be chosen.

Payment mode If the payment mode is other thanCheque or BACS, then it is specified in

this field. For example, if a Bank PayOrder is being issued.


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Mode Date The date of the instrument by whichthe payment is made is specified in

this field.

If the payment status is defined as oneof the two options described abovethen this field must be left blank. It willbe updated by SITE through thecheque printing of BACS transfermodules.

If the entry is for a part transactionthen the cheque date or instrumentdate must be entered in this field.

Mode No The number of the instrument by

which the payment is made isspecified in this field.

If the payment status is defined as oneof the two options described abovethen this field must be left blank. It willbe updated by SITE through thecheque printing of BACS transfermodules.

If the entry is for a part transactionthen the cheque number or instrumentmust be entered in this field.

Drawn on Bank If a Pay Order has been issued, and aspecific bank has been drawn uponthen the name and branch of the bankis specified in this field.

A/c Payee If a cheque is to be printed and thecheque must be crossed, then thischeck-box must be ticked.

Paid By / To If the name of the party is to be otherthan that of the account being debited,then the alternate name is specified inthis field.

This is not applicable for BACSTransfers and is applicable only forcheques.


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Voucher Type: MRB


Receipt mode The mode of receipt e.g. Cheque,

BACS, Pay Order etc. are specifiedhere.

Mode Date The date of the instrument by whichthe receipt has occurred is specified inthis field.

Mode No The number of the instrument bywhich the receipt has occurred isspecified in this field.

Drawn on Bank If a Pay Order has been received, anda specific bank has been drawn uponthen the name and branch of the bankis specified in this field.

Paid By / To If the name of the party is to be otherthan that of the account beingcredited, then the alternate name isspecified in this field.

When the voucher header is posted, the system automaticallycreates the voucher number and displays it in the Voucher Number

field in the uppermost panel of the screen.

For this voucher header, multiple lines can be created in the VoucherDetails section. For each line, the following information is entered:

For each line entered in the detail section, the following information isspecified:


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Job Code

Project Name

The Project for which the line entry is

being made is selected here. For easeof data entry, the default projectselected at the time of login isautomatically selected.

If the job-code is known, it can bedirectly entered in the Job Code field.SiTE displays the project name. If thejob-code is not known, then the projectcan be selected by clicking on theadjacent button.

CC Key

Cost Centre

The Cost Centre for which the lineentry is being made is selected here.For ease of data entry, the default costcentre selected at the time of login isautomatically selected.

If the cost centre key is known, it canbe directly entered in the CC Keyfield. SiTE displays the cost centrename. If the key is not known, then thecost centre can be selected by clickingon the adjacent button.

Account Number

Account Name

Class

The account to be debited or creditedin the detail line is selected in these

fields. If the account number is known,it can be entered in the AccountNumber field. If not, the adjacentbutton can be clicked for selecting anappropriate account.

The class to which the accountbelongs is displayed in the field namedClass

See the section TheAccounts Pick Form in

this chapter.

Debit / Credit Whether the account selected is to bedebited or credited is indicated in thisfield.


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Voucher Amount The amount to be debited / credited forthe line item is specified here.

The adjacent button maybe clicked in case a the

amount is to be arrivedupon based on areference adjustment.See section AccountReferencing for moredetails.

Due Date If the amount is an accrual of liability,then the date on which the paymentfor it becomes due is entered here.

For example if a party account is beingcredited for an invoice and thepayment for the same is due after 30

days, then the due date can bespecified here.

This field impacts theAging Analysisstatements.

Costing Entry This field indicates whether the lineentry is to be considered by the SiTEJob Costing application in itsstatements. Specifying No for an itemwill eliminate it from the costingapplications purview.

Description A narration for the line item is specifiedin this field.

Voucher Detail No. On posting the line item, SiTE assignsa line number which is unique for thecompany.

Once all the lines within the voucher are entered, the Save Docbutton must be clicked. This shifts the status of the voucher from Notsaved to Saved. SiTE will not permit the user to exit the form unlessthe document has been saved. It will also prevent the voucher frombeing saved unless the Debits do not match credits.

Once a voucher is saved, depending on the approval sequencespecified it will be queued to the appropriate users for approval. Thevoucher may not be edited or deleted once it is approved.


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Viewing and Editing an existingvoucher

To view, edit or delete an existing voucher, the voucher must first beselected. This can be done in one of two ways. If the vouchernumber is known, the same can be entered in the Voucher Numberfield. If it is not known, then the adjacent button is clicked to bring upthe Voucher Pick form.

The voucher pick form provides various filter criteria, which can beused to find a particular voucher. The following table describes thesecriteria:

Filter Parameter Description Special Notes

Type Filters the vouchers by the VoucherType

Sub-type Filters the vouchers by the Sub-type

From Number

To Number

Search for vouchers within anumbered range.

From Date

To Date

Search for vouchers within a particulardate range

Status Filter by the status of the voucher.Possible options: Not Saved, Saved,Partly Approved, and Approved.

Description Search for vouchers containing acertain narration. Part strings can besearched using the % operator. Forexample, writing %Concrete%, willdisplay all vouchers whose narrationcontains the word Concrete.

Once the filter parameters have been specified, clicking on theSearch as per specification button displays all vouchers meeting theselected criteria. Double-clicking on a row in the grid displaying the


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documents, displays the document in the main Voucher Master form.Edits and deletes can now be performed.

Copying and Reversing Vouchers

Copying vouchers

If the voucher is repetitive by nature, the Accounts and amountsagainst them can be copied into a new voucher.

For example, consider the accrual of Rent Income for companyproperty let-out, the monthly rental income. Accruals can be done byusing the copy utility.

To use the copy function, it is recommended that for each VoucherType, a sub-type called REC i.e. recurring be created. This helpslocate recurring vouchers. The first occurrence of the voucher mustbe created by selecting the amounts and specifying the amounts tobe debited or credited.

To copy a voucher, the Copy button is clicked and SiTE provides asearch form to identify the voucher to be copied. Thus one canspecify the sub-type filter value of REC and obtain all recurring

vouchers. A particular voucher is selected and the copy button isclicked. The date of the copied voucher must be edited to reflectappropriate date.

Following checks are present for a voucher type while using the copyfeature: -

Copy From Copy To Special notes

JVC/SJV/PJV JVC/SJV/PJV Cannot copy a JVC toBank or Cash Entries

PVB PVB

MRB MRB

PVC PVC


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Copy From Copy To Special notes

MRC MRC

Reversing vouchers

If the voucher is reversing by nature, the Accounts and amountsagainst them can be copied into a new voucher with all entriesreversed.

To use the reverse function, it is recommended that for each VoucherType, a sub-type called REV i.e. reversing be created. This helpslocate reversing vouchers. The first occurrence of the voucher must

be created by selecting the amounts and specifying the amounts tobe debited or credited.

To copy a voucher, the Reverse button is clicked and SiTE providesa search form to identify the voucher to be copied. Thus one canspecify the sub-type filter value of REV and obtain all reversingvouchers. A particular voucher is selected and the Reverse button isclicked. The date of the reversed voucher must be edited to reflectappropriate date.

Reverse From Reverse To Special notes

JVC/SJV/PJV JVC/SJV/PJV Cannot reverse a JVC toBank or Cash Entries

PVB MRB

MRB PVB

PVC MRC

MRC PVC


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The Accounts Search Form

While creating or editing vouchers, or elsewhere in the system, the

account number / name needs to be selected. If the number of theaccount is not readily known, the search form will need to beinvoked. This form can be invoked by a pick button provided adjacentto the Account name field in various forms.

This search form provides two search methods:

Search by Class

In this method, the tree outline is used which is presented on the leftside of the form. To use this method, the Search as per AccountClass Hierarchy check-box must be ticked. The tree controlimmediately gets enabled.

Clicking, expanding and selecting a node in this tree, displays all theaccounts which are created under that node. On the right side of thescreen, there are two additional criteria provided. Account Name andAccount Number. Specifying values here will further filter the list ofaccounts under a particular node.

Sub-string searches can be specified in these additional fields. Forexample, to search all accounts containing a particular word/s in theirname, enter them as %word-list%. To search all accounts whosenumber starts with 16, enter 16% in the account number field.

In this manner, a particular account can be identified quickly.

Search by Account Name / Number

This approach is identical to the above except that the tree search isnot applied. To use this method, the Search as per Account ClassHierarchy check-box must be ticked.


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ACCOUNT REFERENCING

To track payment made against outstanding invoices as well astracking advance payments and their subsequent adjustments, SiTEprovides a powerful feature called References.

References can only be created for Asset and Liability accountssince party accounts such as debtors, creditors, bank and cashaccounts will only be of these types. Accounts, which are generallyreferenced, are:

Subcontractors

Vendors

Clients

The referencing feature also enables SiTE to generate statementsproviding aging analysis and helps in the processing of receipts andpayments in respect of accrued asset (debtor) and liabilities(creditors).

An example to illustrate referencing

Consider the following example:

If an advance of 1000 is paid to a vendor called ABC, against apurchase order for material for an amount of 10,000. The followingaccounting entries will be created:

Account Dr. / Cr. Amount Reference

Vendor ABC Dr. 1000 Dr. 1000

Bank Cr. 1000 -


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If Vendor ABCs account is enabled for referencing, the system willcreate an open debit reference of 1000 against the debit entry. Thisindicates that an advance has been paid. In all reports, this will beshown as an advance paid which is yet to be adjusted.

When the vendor ABC submits an invoice for the materials deliveredagainst the purchase order for an amount of 10,000, then at the timeof booking of the invoice, the user can adjust the outstanding debitreference of 1000. Thus, the following entries will be created:

Account Dr. /Cr.

Amount Reference

Material Dr. 10000 -

Vendor ABC Cr. 10000 Cr. 9000 (Dr. 1000 adjusted

against advance paid earlier)

At the time of this entry, the due date for an amount of 10,000 isspecified and the debit reference of 1000 is adjusted against thecredit reference of 10,000. Thus, the outstanding credit reference tothe supplier is 9,000.

When aging analysis is run, SiTE will age the credit reference of9,000 depending on the due date. At any point of time, the netbalance in the vendor ABCs account will be the same as the

outstanding reference pending adjustment.

On the due date of the invoice, when the user makes a paymentvoucher, he can create it against the outstanding reference of 9,000by creating the following entries:

Account Dr. /Cr.

Amount Reference

Bank Cr. 9,000 -

Vendor ABC Cr. 9,000

The outstanding reference of 9,000 created above is squared up atthe time of this payment. Thus the outstanding reference balance willbe zero and so will the account balance of the vendor.


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The system invokes a form called Adjust References, wherein allthe pending Debit references will be shown in the grid on the left. Inthis grid, the unadjusted advance amount of 1000 will be visible. Therecord is selected by clicking on it with the mouse. SiTE

automatically copies the amount of 1,000 in the Amount to beadjusted field. Since the full amount of 1,000 is to be adjusted, thisfigure need not be changed. It must be noted that part adjustmentscan also be made by changing this amount.

The down-arrow button is clicked to allocate the reference foradjustment and the record disappears from the grid above. In thismanner, multiple adjustments can be created, however, in this casethere is only one adjustment.

The tick-mark button is clicked to return to the voucher form whereinthe amount of 1,000 is copied into the Voucher Amount field. Thisvalue is overridden to 10,000.

When the record is posted, one can see that the reference amountwill now show as 9,000 and the Reference Dr/Cr. will show as Cr.This means that against the credit of 10,000 a balance payment of9,000 is due.

Method 2:

After creating and posting the header section of the voucher, whichwould be of the type PJV sub-type GEN, the insert button is clickedin the details section. The project and cost centre are selected (ifdifferent from the default) and the account for Vendor ABC isselected. The Debit/Credit option is selected as Credit since a creditof 10,000 is to be created. The voucher amount is entered as 10,000and the record is posted. At this point one can see that the referenceamount will now show as 10,000 and the Reference Dr/Cr. will showas Cr. This means no adjustments have been made.

Now, the line is selected in the grid and the tab is switched to the tabnamed References. In the grid named Adjust Reference Against,one can see the outstanding unadjusted debit of 1,000. This line isselected by clicking on it. In the panel on the right side named AdjustReferences the insert button is clicked. SiTE picks up the debit


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amount of 1,000 and the user can specify if a lower amount must beadjusted. In this example, the amount should not be changed. Therecord is posted and the record disappears from the grid on the left.One can return to the details entry tab and check that the reference

amount will now be displayed as 9,000 Credit.

Method 3:

This method is used if one does not want to create adjustments atthe time of the voucher entry. SiTE provides a form AdjustReferences, which can be used to create adjustments. In this form,reference adjustments can be performed for a particular account.

The voucher for the invoice is prepared, saved and approved. In this

form, the account for the vendor ABC is selected. All unadjusteddebit references are shown in the grid to the left and creditreferences are displayed in the grid to the right. Thus, the advanceamount of 1,000 will appear as a debit reference in the grid to the leftand the credit reference of 10,000 will appear in the grid to the right.Each of these records must be selected in their respective displaygrids.

The edit field in between the two grids will display the minimum of thetwo selected references, which in this case will be 1,000. Clicking on

the Adjust button will create an adjustment of 1,000 and thus thecredit reference will now appear as 9,000.

The same procedure must be followed when a payment is beingmade against the pending amount of 9,000. In this case, the method1 is the most appropriate since selecting one or more creditreferences for adjustment and returning to the voucher details entrywill automatically bring in the total amount to be paid in the VoucherAmount field.

The 3rd

Tab in the Voucher Details provides for viewing of the variousentries by virtue of which the Original Reference Amount for theselected Account has diminished after adjustments were madeagainst the same.


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SYSTEM CREATED

ACCOUNTS ANDVOUCHERS

SiTE provides a powerful feature of automatically creating accountsas well as accounting entries for various types of transactionsoriginating in the other applications of SiTE. It provides a rules andparameters based approach, where once the configuration is setup,

SiTE does the remaining without much user intervention.

The integrated accounting provided by SiTE delivers several keybenefits to the users:

Eliminate the need to reconcile accounting data with that of theother applications.

Save precious man-hours spent creating and verifyingaccounting entries

Minimize time to access online accounting information

To automate the accounting process, SiTE provides two distinctintegration areas:

Automated Account Creation. In this area, SiTE automaticallycreates different types of accounts linked to entities and masterscreated in the other applications. For example, creating vendor

and sub-contractor accounts etc. Rules for how these accountsare created are defined in SiTE at the time of configuration.

Automated Voucher Creation. In this area, SiTE automaticallycreates accounting vouchers for source transactions in the other


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applications. For example, creating a provision when a materialis received at site, creating a liability on vendor invoicecertification etc.

In the following sections, the configuration procedure as well as themethodology of voucher generation is explained, for eachapplication.

Purchase and Stores

The purchase and stores application deals with the procurementactivity based on a purchase order and the stores activity.

SiTE provides integrated accounting for the following transactions:

Transaction Description

Item Receipt Note At the point of receipt of material, aprovision for uncertified purchases iscreated in the accounting system. If theitem being received is a stock item, thestock account is updated, else theconsumption account is updated.

Invoice Certification On certifying a vendors invoice which isdone by a matching of the receipt notes

and the purchase order, the provision isreversed and a credit is given to theVendor.

Debit / Credit Notes Debit / Credit notes to vendors areaccounted by passing either a debit or acredit to the vendor, and a reasonaccount is the opposite side of the entry.

Issue Note For stock items, the stock account isreduced and the consumption account isupdated. If an item is issued to a sub-contractor on a recoverable basis, thenthe recovery account of the sub-contractor is also impacted.

Stock Correction Corrections to the stock by way ofincrease or decrease are accounted inthe stock account with the opposite sidebeing a reason for the stock correction.


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Transaction Description

Transfers Transfer of material and spare betweenprojects belonging to the same or

different companies.

Rejections Rejection of items received in the store.

Return to Stores Return of issued material back into thesame store. This transaction essentiallyreverses the issue note to the specifiedquantity.

Material / Spare Groups

In the SiTE Purchasing and Stores application, a master of allmaterials and spares that will be procured is maintained. This usuallyis a detailed listing of all items. However, in the books of accounts,the accountant may choose not to have a single account for eachsuch material and spare defined.

SiTE provides a facility to create a material or spare group, whichwould contain various materials linked under the group. This groupwould then be linked to an account in the accounting system. Thustransactions would be summarized for a material group and then thevoucher would be created. For example, all bulk material used for

civil works can be grouped under a single material group and a singleaccount called Bulk Civil Materials can be created.

Material groups can further be defined as Stock or Non-stock. Thisindicates to site, whether transactions for a particular material mustbe routed through the stock account or directly expensed.

Defining a material group as a stock, instructs SiTE to create a stock(asset) account for the group and route all transactions such asreceipt, issue, transfer, rejection, return notes through the stock

account. On the other hand, defining a material group as non-stock,instructs SiTE to create a Consumption (expense) account for thegroup.


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Material groups can be defined in the Material Account Group formwhich is invoked by the sequence General Masters -> MaterialAccount Group.

On the first tab, an empty account group can be created. Thefollowing fields must be specified:


Group Name The name of the group for which anaccount is to be created is specified inthis field.

Stockable (Y/N) This field indicates whether a stockaccount or a consumption accountmust be created for the group.

Since SiTE maintains a distinction between Materials and Spares,individual groups must be created for each of these.

On the second tab, SiTE displays those classes from the Material /Spare Master which have not been linked to a particular group.Selecting a class and clicking the Link Material Class to MaterialGroup button, links the class to the group.

The third tab displays the various classes which have been linked tothe material / spare group. Selecting a particular class and clickingon the De-link Material Class to Material Group button removes theselected class from the linked list.

When accounts are created for the material groups, two accounts arecreated for each group. One for Self purchased material and one forClient supplied material.

A material group defined here is the default setup. To enable it towork for each project, the user must link the material group to aproject. While this serves as a template, the project setupsupercedes this default.


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To link groups to projects, the Project Material Group form is usedwhich can be invoked by the sequence Company / Project Masters -> Project Material Account Group.

In this form, a project is selected and the groups are selected fromthose defined in the Material Grouping defined above. Afterassociating the groups to the projects, the user may edit theconfiguration. For example a particular group may be stockable forone project but not on an other. Or the classes linked to a particulargroup may be different. Such changes can be done here.

System Created Accounts

To account the transactions specified above, various accounts need

to be created and their creation methodology specified. For each ofthese types of accounts, SiTE provides a System Account ID. Thesesystem account ids are used by the system to create the accountingvouchers for each of the transactions specified above. SiTE providesthe following accounts which must be present in order that theaccounting be automated:

SystemAccount Id

Account Description Usage

101 Provision for UncertifiedPurchase

This account is used to provisionfor items being received throughan item receipt note. At the time ofinvoice certification, this account isalso used for reversal of theprovision.

One account is created by SiTE foreach company.

102 Materials / Spares Stock inTransit

This account is used duringtransfer of items (materials /

spares) from one project toanother. This account will have abalance for each transfertransaction from the point of issueof material from the source projecttill the time the material is receivedat the destination project. At thispoint, there will be no balance for a


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SystemAccount Id


particular transfer transaction.


103 Self Purchased Material Group Consumption

Various materials defined in thepurchase and stores applicationcan be linked to a material group.For each group an account will becreated in the account.

An account of this type will becreated for each material groupwhich is not stockable i.e.Stockable = No. (See sectionMaterial / Spare Groups above)

104 Self Purchased Material Group Stock

An account of this type will becreated for each material groupwhich is stockable i.e. Stockable =No. (See section Material / SpareGroups above)

105 Self Purchased Spares Group Consumption

An account of this type will becreated for each spare groupwhich is not stockable i.e.Stockable = No. (See sectionMaterial / Spare Groups above)

106 Self Purchased Spares Group Stock An account of this type will becreated for each spare groupwhich is stockable i.e. Stockable =No. (See section Material / SpareGroups above)

107 Client Issued Material Group Consumption

An account of this type will becreated for each material groupwhich is not stockable i.e.Stockable = No. (See sectionMaterial / Spare Groups above)

108 Client Issued Material Group Stock

An account of this type will becreated for each material group

which is stockable i.e. Stockable =No. (See section Material / SpareGroups above)

109 Client Issued Spares Group Consumption

An account of this type will becreated for each spare groupwhich is not stockable i.e.


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SystemAccount Id


Stockable = No. (See sectionMaterial / Spare Groups above)

110 Client Issued Spares Group Stock

An account of this type will becreated for each spare groupwhich is stockable i.e. Stockable =No. (See section Material / SpareGroups above)

111 Inter-project Material/SpareTransfer Expenses

This account is used to trackexpenses incurred on the transferof material / spare from one projectto another.


112 Reserved This is reserved by SiTE.

113 Fixed Asset PendingCapitalization

This account is used to create aprovision for uncertified purchaseat the point of the item receipt notein the even that the item beingreceived is either a plant andmachinery or a fixed asset.


114 Profit or Loss on Inter-projectMaterial/Spare Transfer

This account is used to book theprofit or loss incurred by a projectduring inter-project transfer ofmaterial when the rate of issueand that of transfer to anotherproject as defined in the transferinstruction are different.


115 Vendor An account for each vendorspecified in the Vendor Master inthe purchase and stores

application is created.

116 Sundry Payment Deductions The Reason Master is used tocreate this account. The reason iscaptured for making debit / creditnotes (Sundry Payment /Deductions). An account for each


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SystemAccount Id


reason is created.

117 Group Company / ProjectSundry Creditor Account

An account is created for eachcompany. For transfer of material /spare between projects belongingto different companies, this isaccount is used.

118 Cost incurred on client receivedmaterial

This account is used to track thecosts incurred on client suppliedmaterials. When invoices for suchcosts are certified through TPB /OPB documents, this account isimpacted.

One account is created for each

company.

For the account types given in the table above, certain configurationparameters need to be specified. Of these parameters, the AccountCreated By and the Options parameters are the most important.These are described as under:

Account Created By

For each type of account, the users can configure whether the actualaccount will be created by the User or by the System.

Thus for each account type, SiTE provides four values for thisparameter. These are described below:

Account Created By Description

System (Mandatory) Certain accounts given in the tabulationabove will have a default parameter value System Mandatory.

This means that the account must becreated by SiTE automatically and theuser cannot change the creation mode toa user created mod

Account Manual

Documents

Transcript of Account Manual