Financial Transfer


+ Transcript

As the previous workflow videos have shown, DBA runs the manufacturing side of your business. Your accounting system will continue running the financial side of your business -- meaning receivables, payables, banking, payroll, and overall general ledger.

DBA updates your accounting system with daily AR and AP vouchers and period end GL account totals to reflect the activities of the manufacturing system. In this video we show you the interaction between the two systems.

The AR Invoice Transfer screen, here on the Financial Transfer menu, is used to transfer each day's invoices and new customer records to your accounting system for receivables processing.

Invoices are transferred in a voucher format that includes complete header detail, but only a single line for the invoice total amount. The sole purpose of the voucher is to create a receivable record in your accounting system for tracking and payment processing. The line item details are stored in the DBA invoice for reporting and audit trail purposes.

The Output button is used to generate a spreadsheet or text file that is imported or entered into your accounting system as a set of one-line invoices.

The PO Invoice Transfer screen, here on the Financial Transfer menu, is used to transfer each day's PO invoices and new supplier records to your accounting system for payables processing.

PO invoices are transferred in a voucher format that includes complete header detail, but only a single line for the invoice total amount. The sole purpose of the voucher is to create a payable record in your accounting system for tracking and payment processing. The line item details are stored in the DBA invoice for reporting and audit trail purposes.

The Output button is used to generate a spreadsheet or text file that is imported or entered into your accounting system as a set of one-line supplier bills.

AR and AP vouchers do not include any taxation detail. This is because DBA has its own tax system that calculates and tracks sales and purchase taxes.

An array of taxation reports and data views are available. When the time comes to pay your tax liability, this reporting is used to get a summary or detail breakdown of sales and purchase taxes by tax code or tax authority, with a complete audit trail at the invoice level. You use this information to prepare your tax filing forms and to create a payable in your accounting system to your tax agency, debited against your sales tax liability account.

DBA has its own general ledger that gives you a true manufacturing accounting system that tracks inventory, work in process, sales, cost of goods sold, and taxation.

The general ledger is all set up for you with a standard chart of accounts, which you see here, and account assignments.

You simply cross-reference approximately 15 accounts with those in your chart of accounts and add your own sales and COGS accounts as needed.

A big benefit of our accounting design is that your operational people are never exposed to accounting decisions. All account posting setup is done in advance here in the Account Assignments screen, under the control of your accounting department.

Your non-accounting people can freely add items, customers, and suppliers, and enter sales orders, jobs, and purchase orders without ever having to specify GL accounts.

All the standard inventory, sales, jobs, and purchasing account assignments are already set up for you.

The only setup required on your part is to specify your sales and cost of goods sold accounts on this tab.

The GL transactions in DBA are summarized into a single debit and credit amount per account for transfer to your accounting system.

This transfer is normally made at period end to update your accounting system's general ledger to reflect the activities of the manufacturing system. Keep in mind that your two critical financial accounts - Accounts Receivable and Accounts Payable - are always kept current by the daily AR and AP voucher transfers, so one transfer at period end is sufficient for the remaining accounts.

Here in the grid, each account has a debit and credit total that represents the summarized total for all transactions within the period. It is not necessary to transfer transaction detail because all the detail is stored in the DBA general ledger and provides a complete audit trail.

The Output button is used to generate a spreadsheet or text file that is imported or entered into your accounting system as a batch journal entry.

As you have seen, the Financial Transfer process makes it easy to update your accounting system to reflect the activities of the manufacturing system. Daily AR and AP voucher transfers keep your Accounts Receivable and Accounts Payable accounts current for payment tracking and processing. And at period end, summarized account totals are transferred to update your general ledger so that financial reports reflect the activities of the manufacturing system.