Global Parameters Maintenance - Accounting

General Information

This tab screen contains information associated with many of the general areas having to do with accounting. Complete the fields as required.

See Also

Global Parameters Maintenance - Overview

Accounting Methodology

Business Rules

Set these two rules according to your business requirements.

CUSTOMER MUST HAVE A CREDIT LIMIT FOR OPEN INVOICING

This question determines under what conditions M.O.M. allows the payment method IN (Invoice) to be used. Check this box to require that a customer have a pre-established credit limit to allow open invoicing. Leave the box empty to allow invoicing for any customer with or without pre-established terms.

CASH ONLY REQUIRED ON COD ORDERS

With many shippers today unwilling to take actual currency from customers, the word "cash" implies either certified check or money order as well. Check this box to require shippers to collect funds due as "cash" instead of customer check.

APPLY TERMS DISCOUNT FOR ACCOUNT RECEIVABLES MERCHANDISE TOTAL AMOUNT ONLY

Select this checkbox if a customer has terms established and can receive a discount if payment is applied within a certain number of days.   Instead of applying the discount on the total billed amount which includes tax, shipping & merchandise, the discount will be applied only on the billed merchandise.

CHARGE TAX WHEN EITHER BILL-TO OR SHIP-TO HAS PRESENCE IN THIS STATE

M.O.M. by default will only charge Sales Tax based on Ship-To location. Select this checkbox to charge sales tax for orders that are either billed or shipped to a resident of the state in which this M.O.M. company is located in. This requires the state to have Sales Tax established in the Sales Tax Maintenance screen.

Note: Due to the complexities of the taxation rules for the State of Virginia, when the Company Address tab of the Global Parameters has Virginia entered in the STATE CODE field, this checkbox will be disabled. M.O.M. Users located in Virginia should consult their Tax Advisors and setup M.O.M. accordingly.

Points Rewards

If you want to create a points and rewards incentive program for your customers to provide discounts on future purchases based on previous purchases, use these fields to determine how the program is to be set up.

1. To enable a points and rewards program, check the box for Use Points/Rewards.

2. Determine how points are to be accumulated by customers. To allow points to be accumulated by total dollars spent, select 1 Point for Every $__ of Merchandise Purchased and enter the dollar value. To allow points to be accumulated only for certain products purchased, select Points As Established For Each Product. You must set up the earned point values for each product in the Maintain Stock Item function.

3. Determine how points are to be redeemed by customers. To allow points to be redeemed as a credit on order total on a future order, select 1 Point = $___ Off The Order Total and enter the dollar value. To allow points only to be used as a credit when purchasing certain products, select Can Only Be Used To Buy Designated Products. You must set up the redemption point values for each product in the Maintain Stock Item function. Note: Points applied to the order total create a journal entry. Points applied to the item change the item price.

4. Optionally, if you are using the M.O.M. G/L interface, and have selected to redeem points based on order total in Step 3, you can select the G/L sub-account to post redeemed points. Use the pull-down menu for Post Redemptions to the Following Payment Adjustments Sub-Account to make your selection.

Allowed Forms of Payment

M.O.M. allows many different payment methods that can be selected on the Order Total Tab of the Order Entry screen. To disable specific forms of payment, uncheck them from the List. Point of Purchase Module users can deselect methods exclusively for POP orders.

Default Terms

M.O.M. enables you to establish the default terms for open invoiced orders. Each customer can have their own specific terms as well, and those specific terms automatically take precedence over any default terms established.

Enter the Default Terms expressed as XX % YY Days, Net ZZ. Where XX = a discount percentage available if the invoice is paid within YY days, and ZZ = the number of days that a customer has to pay the invoice.

A/R TERMS- Enter the default terms for your clients who pay by invoice.

OPENING CREDIT LIMIT- Enter a default credit limit for clients who pay by invoice.

A/P TERMS- Enter the default terms for your Vendor Bills.

USE ____ FOR AVG DAYS TO PAY BASIS- Select to use either the Invoice Date or the Due Date to calculate the average number of days that a customer takes to pay an open invoice. This calculation is displayed in the Financial tab of the Customer Maintenance screen.

Accounting Interface

As an option, M.O.M. enables you to post your A/R Journal and/or A/P Journal to the general ledger accounting package of your choice.

Use the General Accounting Package list box to select the accounting package that you are using. Depending on your selection, the two additional check-box options may or may not be available.

• Create a Separate A/R Journal Entry for Each Day's Activity - Check this box to have M.O.M. provide subtotals for each accounting category by individual day instead of just a summary for the period being posted.

• Send Vendor Bills to G/L Package For Payment - Check this box to post the vendor amounts payable to your accounting package before you pay them in M.O.M.'s Pay Suppliers function. This enables you to pay vendors in your accounting system instead of M.O.M.

Specify the file name and path for both the Accounts Receivable Export File and the Accounts Payable Export File. These need to be the path and file name that you use to import the posting files into your general ledger accounting system.

Note:  If you select Special Edition for QuickBooks Users, then click here to read the connection instructions.

Inventory Accounting Method

M.O.M. enables you to select one of three different Cost of Goods accounting methods. Consult your accountant before making a selection here. The selection can be changed at any time without affecting any previous accounting history.

Use the pull-down menu in the Inventory Accounting Method field to select one of the following:

• Average Cost - M.O.M. updates the value of your entire inventory each time you receive product from suppliers by averaging the buy price for all items in inventory at the time of each delivery.

• Last in First Out (LIFO) - M.O.M. keeps a separate cost lot for each delivery. Stock items from the most recent lot received (last in) are sold before (first out) items from older lots.

• First In First Out (FIFO) - M.O.M. keeps a separate cost lot for each instance of product receiving. Stock items from the oldest lot (first in) are sold (first out) before selling the most recent lots.

 Advanced Inventory (AIM)

PROVIDE AN ADDITIONAL STEP TO RECONCILE RECEIVED MERCHANDISE WITH SUPPLIER INVOICES - select this to not have all products processed in the Product Scan & Receive screen, in the Advanced Inventory Module, sent to Payables.   Merchandise can then be reconciled in the Reconcile Received Merchandise With Supplier Invoices screen.