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Last modified on 10/1/2015 8:49 AM by User.

Tags:
Inter-Division, Transfers, Balancing

Inter-Division Transfers - Balancing

Order Processing Module:

 

At the end of each day, after all invoicing has been done, go to:

  • Order Processing (Module 6)
    • Daily Checkout/Summary (Task 11)
      • Daily Checkout Summary - Open Order File (Sub-task 1)

 

This report is good for breaking down sales, transfers, etc.

 

                                                OR

 

At the beginning of the following day, go to:

  • Order Processing (Module 6)
    • Daily Checkout/Summary (Task 11)
      • Daily Checkout Summary  - Holding File (Sub-task 2)

 

This report is the same as the one above. 

 

 

Accounts Receivable:

 

DAILY BALANCING, go to:

  • Accounts Receivable (Module 2)
    • Sales Entry and Editing (Task 1)
      • Print  & Post Selected Sales Record (Sub-tasks 4 & 5)

 

The edit list will show totals, which include both "normal" sales and the "interdivision" sales.  However, the actual "normal" sales for the day is the total on the sales edit report MINUS the "interdivision" transfers.   A good idea is to write the dollar amounts of the transfers and sales on the edit list and posting journals.

 

The dollar amount should match with the SALES column and TRANSFER column figures from the reports run out of Order Processing (Daily Checkout/Summary).  The TOTALS on the Order Processing report and the TOTALS on the AR Sales Edit List should match.

 

DAILY BALANCING continued, go to:

  • Accounts Receivable (Module 2)
    • Cash/Receipts Entry and Editing (Task 2)
      • Print & Post Selected Cash Records (Sub-Tasks 4 & 5)

 

Cash from the interdivision transfers will appear in the "OTHER" column of the Cash Edit List.

The total cash to balance with the deposit ticket will include "other", however the cash from the transfers net out to zero.

 

 

MONTH END BALANCING, go to:

  • Accounts Receivable (Module 2)
    • Sales History (Task 19)
      • Print Selected History Records (Sub-task 4)

 

Print the Sales History report for interdivision "customers"  only (i.e. customers 1 - 99).  This report provides the total sales for the interdivision transfers.

Print the same report for customers 100 and up.  The sales figure, which excludes the interdivision transfer customers, is the total sales figure on the Income Statement.

 

 

  • Accounts Receivable (Module 2)
    • Cash/Receipts History (Task 20)
      • Print Selected History Records (Sub-task 4)

 

Print the Cash/Receipts History report for interdivision "customers" only (i.e. customers 1-99).

Print the same report for customers 100 and up.  The amount will exclude the "money" from the interdivision transfer customers.  This is the actual money that went into the bank and should be compared with the sum total of all the deposit tickets to the bank.

 

 

  • Accounts Receivable (Module 2)
    • System Management Functions (Task 32)
      • Generate AR to GL Interface (Sub-task 3)

 

The Sales Portion of the Interface:

The interdivision transfer sales will be included in the DEBIT column dollar amounts (Accounts Receivable - Trade). 

To get the "normal" sales for the month, look at the CREDIT side and total up the sales where the middle two digits are NOT 00 (i.e. the middle two digits will be 01, 02, etc. depending on the number of different divisions)  This is the interdivision Sales Total.

Subtract the total from the DEBIT total (Accounts Receivable - Trade) and this figure is the actual "normal" sales amount.

 

The Cash Portion of the Interface:

The total Cash deposited in the bank should be the DEBIT amount in the Cash in Bank line(s) MINUS the interdivision dollars.  The interdivision dollars are the same number as the interdivision Sales Total as found in the preceding step (Sales Portion of the Interface)

 

 

The Interface has been programmed to automatically provide the sub-totals  of the "normal/actual" sales and the "interdivision" sales.  The software automates the process so the totals do not need to be calculated separately.

 

 

 

 

Accounts Payable:

 

  • Accounts Payable (Module 3)
    • Voucher Entry & Editing (Task 1)
      • Print & Post Transactions (Sub-task 4 & 5)

 

All interdivision transfer vouchers will appear on the edit list as "prepaid" with check number 99999.

To get the actual dollars vouchered on the Voucher Edit List, take the total and subtract the interdivision prepaids.

As a suggestion, on each Voucher Posting Journal write a sub-total of the interdivision and a sub-total for the remaining amount.

 

 

  • Accounts Payable (Module 3)
    • Check Account (Task 20)
      • Print Selected Check Records (Sub-task 4)

 

All interdivision vouchers will appear on the "prepaid" section. All will have the check number of 99999.

The actual amount of the checks written will be the totals MINUS the total of the interdivision checks #99999.

 

 

  • Accounts Payable (Module 3)
    • System Management Functions (Task 32)
      • Generate AP to GL Interface (Sub-task 3)

 

The CREDIT side (Prepaid and Regular Checks) dollar amount includes the totals of the Interdivision check #99999.  Subtract out the dollar value of check numbers 99999 to get the actual dollars paid out of the checking account.

 

  • Printing a Voucher History (Task 19, Sub-task 4 in AP) for intercompany vendors (i.e. 1 - 99) will provide the total to subtract.

  • Printing a Voucher History (Task 19, Sub-task 4 in AP) for vendor numbers 100 and up will provide the "normal" accounts payable total.

 

The DEBIT (Accounts Payable) side dollar amount includes the interdivision amounts.  Subtract out the dollar value of the interdivision amounts to get the actual change in Accounts Payable.

 

The Interface has been programmed so the sub-totals will print for the interdivision and "actual/normal" payable totals.  This eliminates the need to calculate subtotals.

 

 

Important Tips:

 

  1. Post Vouchers every day interdivision transfers occur
  2. Force a check register every day there are interdivision transfers
  3. NOTE: For each day interdivision transfers occur, the dollar amounts on the Sales and Cash Posting Journals should be exactly equal to the Voucher Posting and Check Register interdivision dollar amounts.
    • The "other" dollar amounts on the Cash Posting Journal for interdivision transfers should be equal to the Check #99999 amount.  The cash "in" in the AR module, will go "out" as check #99999 in the AP module.  Therefore, the net effect of money going in and out is ZERO.