advanced revenue management

Accounting Periods

What are Accounting Periods?

 

Accounting periods are an artificial method used to make it easier to organize financial records and allow comparison between different time periods. Organisations deal with accounting periods by detailing transactions on an ongoing basis, but compiling the figures into totals for the period. This compilation process requires the organisation to carry out an administrative task that effectively resets the ongoing transaction record before recording new transactions in the new accounting period.

The importance of Accounting Periods in accounting

 

An accounting system has three broad purposes:

  1. To record all financial (in the broadest sense, not just cash) transactions
  2. To meet all legal and taxation requirements
  3. To provide information to allow managers and/or owners to make business decisions.

Accounting periods are irrelevant for the first purpose because such transactions are on-going but they are essential for the other objectives.

There are several assumptions that accountants make when preparing financial statements and analysts make when reading the statements. These are considered fundamental principles of accounting, more so than the financial standards developed by an individual company. Some key assumptions include that the business is a separate entity, that it is actively trading, and that it uses a consistent monetary unit.

Another key assumption is that the company’s activities can be divided into even and individual time periods. This is artificial, as a company’s trading activities are continuous and ongoing but is necessary to make sure there are regular and comparable sets of financial statements. Most commonly, a company will produce annual accounts, but it may also produce quarterly or monthly figures.

In the UK, limited companies have to produce regular accounts that can be audited both for registration with Companies House and for HMRC for corporation tax assessment. They also need periodic registration of VAT due and paid to calculate net VAT due to HMRC.

In order to ensure that such official reports are accurate – and remain accurate – it is highly advisable to both use and close off accounting periods. This is to prevent the possibility that future transactions (including journals or perhaps changes in currency rates) do not impact earlier reports.

 

Using Accounting Periods

 

The use of accounting periods means that a company carries out procedures in a consistent and repeated pattern.

This consists of two types of cycle: individual transaction and closing period.

Individual transaction.

This usually involves the transaction taking place, the company preparing the relevant documentation like an invoice, the company valuing the transaction and listing it in a relevant journal like that for sales or purchases, and the company copying across the transaction from this journal to the general ledger that acts as a combined record of all transactions. Note that most companies use a double-entry system by which each transaction is recorded in two ways in a journal; for example, a sale is listed once for the receipt of money and once for the loss of the item from stock.

Closing Period

The second cycle is the set of steps followed at the end of each accounting period. This involves verifying that the two sets of transaction listing in each journal add up to the same totals, correcting any errors, copying the details from each journal to the general ledger, preparing financial statements, and posting closing journal entries. This means that although the various journals like sales records are ongoing, there are clear boundaries between the accounting periods, and it’s easy to see the current total for any particular period.

NetSuite Period Close Checklist

This checklist describes the standard required tasks in sequence. Restrictions contained by this sequence can be overridden with the necessary permissions.

  • To close a period, first lock out transactions that post to Accounts Payable and Accounts Receivable.
  • Review accounts and perform any necessary adjustments. These adjustments can include transactions generated by the system such as intercompany adjustments and foreign currency balance revaluations in OneWorld accounts. Also, if using NetSuite OneWorld, update consolidated exchange rates to ensure that consolidated financials are accurate, and eliminate intercompany transactions if using the Intercompany Auto Elimination feature.
  • Reconcile negative inventory, correct transaction/period date mismatches, and validate gapless General Ledger audit numbering.
  • If Multi-Book Accounting is used, each accounting book can be individually closed and reopened.
  • Close the period to exclude all posting transactions. Later, if additional postings are required, the period can be reopened.
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Another successful year

As we start into our fourth full year as a NetSuite Solution Provider we reflect upon another successful year. We have helped four companies go live with NetSuite, added six new clients for whom we have delivered a range of services as well as adding to our number of NetSuite connector for google apps clients.

Financially the business has nearly doubled in terms of turnover and increased profitability. Keystone Data has employed two new members of staff and extended our relationships with third parties to deliver the increased services.

2017 should be an interesting year as Oracle Corporation start to absorb NetSuite. We are very excited to see how 2017 pans out and wish all our clients and associates a successful New Year.

Sun Branding

Sun Branding Solutions – Project Completed

Sun Branding Solutions , a subsidiary of Sun Chemicals based in Bradford Yorkshire, have gone live with NetSuite after a lot of hard work from the Keystone Data team working closely with the team from Sun Branding.

Together we have implemented NetSuite Advanced Financials and OneWorld to replace a number of different products and internally developed software and provide a common fully integrated solution and provide a number of benefits.

accounting

New Revenue Recognition Standards – IFRS 15 – should you be concerned?

The new accounting standards for revenue recognition that has been agreed by both IASB (International Accounting Standards) and the US FASB (Financial Accounting Standards Board) comes into effect 1st January 2018 applying to accounts that commence in 2018.

You may think that revenue recognition only applies to organisations delivering projects with complex contractual and payment terms. But that is no longer the case with IFRS 15. It now applies to any circumstance where the invoicing does not coincide with the delivery of goods or services, with certain pre-defined exclusions.

The exceptions are:

  • lease contracts under IAS 17;
  • insurance contracts under IFRS 4;
  • financial instruments under IFRS9, IFRS 10, IFRS 11, IAS 27 and IAS 28
  • non-monetary exchange between entities in the same line of business to facilitate sales

You may think that your organisation only provides goods rather than services, so how could is apply to you? One example is that if a product e.g. a washing machine is sold with a three-year maintenance under IFRS 15 part of the price paid should be considered as applying to the maintenance and should therefore be recognised in the accounts as and when the maintenance is delivered.

Another example could be if you sell a product which requires a deposit. At what stage are you entitled, under IFRS 15, to take that deposit to revenue? How does IFRS 15 apply to distributors with ‘sale or return’ arrangements with their customers?

For many service organisations its implications are clear (even if implementation details require a lot of consideration). Project organisations of any size are probably familiar with accounting with revenue recognition but will have to adapt their accounting from earlier ones (which will depend on a number of factors). But now many organisations that charges an annual fee for a service – software licence, maintenance, internet hosting for example – will have to take account of IFRS 15.

Is your organisation affected?

Definitely yes if your organisation currently handles revenue recognition under existing non-excluded IFRS rules you will need to change to the new standards.

Currently no if your organisation only ever supplies goods and/or services that are invoiced (or paid for) in line with the supply of the goods and/or services (and intends to restrict business to such) or only supplies the financial products excepted from IFRS 15.

All other organisations should consider their situation and discuss with their auditor and/or accountant.

When should you consider IFRS 15?

There is less than eighteen months before the standard comes into effect. Of course if your accounts run from September, October, November or December you have at least two years before you are required to implement it. Note that IASB are happy for organisations to implement IFRS 15 immediately so there is no need to wait until the last minute.

I suggest you do two things right away:

  • discuss with your accountant/auditor whether you will be affected
  • find out whether your existing accounting system effectively handles IFRS 15 (Note that NetSuite with Advanced Revenue Manager has a fully integrated module that fully supports IFRS 15)

I further suggest that anyone considering a change to the accounting system adds full integrated support for IFRS 15 to their requirements. After all, do you really want your future business plans impacted by a lack of such support?

 

Sun Branding

Sun Branding Solutions have signed up with Keystone Data and NetSuite

Sun Branding Solutions http://www.sunbrandingsolutions.com/, a subsidiary of Sun Chemicals, have chosen Keystone Data to help them implement NetSuite and streamline their administrative processes.

Sun Branding Solutions delivers services across the entire packaging launch process for your brands, from concept and creative design through to artwork, pre-press and legal sign-off. It is based in Bradford Yorkshire with subsidiaries in London and India.

NetSuite Advanced Financials and OneWorld will replace a number of different products and internally developed software to provide a common fully integrated solution and provide a number of benefits:

  • Reduced administration
  • Increased accuracy
  • Standardisation of procedures
  • Process improvement
  • Improved reporting

Keystone Data will work with Sun Branding staff to maximise the benefits from using NetSuite.

We are delighted to have this opportunity of working with Sun Branding Solutions We very much look forward to the project and an on-going relationship.

parcels

Intelligent Delivery

The range of delivery services provided by an e-commerce businesses can make the difference between a sale and a lost opportunity. Customers today may prefer to wait longer or to pick the order themselves from a pick-up point than to pay a delivery fee. Conversely, some clients would be ready to pay a higher delivery fee if the order will be delivered in the next 2 to 24 hours.

Your business needs to provide a wide range of delivery options to satisfy all customers. With NetSuite you can easily get your delivery process at very high standards. Keystone Data has developed a delivery script which can be customised to every business. This script takes into account the address of the client, the weight and the size of the item. It then returns a list with all delivery methods available. This script gives your e-commerce business the ability to make intelligent delivery not only in terms of what carrier to chose but also of what box type to chose.

Benefits:

  1. The ability to chose the best carrier/ delivery service for a specific address.
  2. Efficient matching of an order with a relevant box type.
  3. Freedom in choosing the date of the delivery.
  4. Increase efficiency and customer satisfaction.

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Automatic Print Queue For NetSuite

Do you want to print invoice documents, item fulfilment documents etc. automatically? Look no further Keystone Data has the solution to your problems.

KeyStone Data has developed a custom record which makes possible automatic printing of every document inside NetSuite without the need of physically downloading it. This particular feature comes with unlimited freedom in selecting which printer to use for the job.

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Another important aspect is the ability to send files/documents to different remote computers through a windows application and an associated restlet. For example, the ability to export any saved search result as a csv file. This functionality is used in many of the parcel carrier integration which Keystone Data provides such as: TNT mail integration, Royal Mail integration.

This record/app is very useful for companies that have high volumes of shipments and for any firm that wants to improve its efficiency.

To conclude, the below list contains the main benefits of this feature:

  1. This feature enables automatic printing/ updating of specific documents.
  2. Freedom in choosing the printer.
  3. Exporting data to a remote/local computer.
  4. Importing data from a remote/local computer.
  5. Saved search results can no be printed or exported automatically.

Please feel free to contact us for any questions.

Have a nice day!

CAT6

What functionality enhancements are expected in NetSuite ERP release 2016.2?

NetSuite Release 2016.2 will be rolled out over the next few months. NetSuite have published plans which include the areas listed below. It is recognised that some features may not be available in the 2016.2 release timeframe.

Accounting

  • Change to Merging Accounts Quick Close Accounting Period
  • Statutory Chart of Accounts
  • Cumulative Translation Adjustment (CTA) Balance Audit Report
  • Enhancements in Advanced Revenue Management
  • Journal Entry Approval Workflow
  • Legal Name in Chart of Accounts
  • Change to Accounting Periods Feature in Accounts That Are Not OneWorld
  • Allocation Schedule Enhancement
  • Fixed Assets Management Enhancements

Employee Management

  • Management
  • Weekly Timesheets
  • Time Tracking Enhancements
  • Time Approval Enhancements

Items and Inventory Management

  • Commit Orders Scheduling
  • Replenish Location by Transfer Order
  • Withdraw by Transfer Order
  • Phantom BOM
  • Transfer Order Enhancements
  • Item Ordering Enhancements
  • In-Process Work Order and Assembly Build Editing
  • Matrix Items Name Template

Order Management

  • Fulfilment Requests
  • Location Record Enhancements
  • New Advanced Order Management Setup Page
  • New Fulfilment Workload Distribution Rule
  • Rerun Automatic Location Assignment
  • Void Payment Authorizations
  • Changes to How Charges Are Added to Some Transactions
  • Customer Hierarchy Size Limit
  • Support for FedEx Services
  • Support for ZPL Label Printing Format
  • Preview Payment Processing Profiles for Websites and Subsidiaries
  • Updated Payment-Processing Field Labels
  • Contract Renewals Enhancements
  • Automatic Chargeback Workflow Processing
  • Electronic Payments Enhancements
  • Grid Order Management Enhancements

Projects

  • Project Billing Rate Cards
  • Project Revenue Recognition
  • Project Template Enhancements
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Shipping Integration

In a world where efficiency is a key factor for the success and profitability of a business Keystone Data developed the perfect product to save time and effort. With just one click you will be able to send all the delivery details to your selected carrier and at the same time get back the tracking number assigned to that delivery.

Untitled-2At the point of shipping the order in NetSuite a script will send the shipment details to the carrier. Once the details are in, the carrier will send back the tracking number which will then be displayed on the dispatch e-mail and on the item fulfilment. Also carrier shipping labels will be automatically printed. Say goodbye to manually inputting the delivery details for each order.

Benefits:

  1. The product will speed up the shipment process and make it more efficient.
  2. The client has access to his tracking number withing seconds from the shipment of his order.
  3. Automatic printing of shipping labels for the desired carrier.
  4. Frees up human resources.

 

We encourage you to contact us and get a taste of this product which will change the way you ship items and it will give your business more freedom.

Have a great day!

 

kit components

Kit Components Tree

Hello Everyone!

We’ve just developed a new way of looking at your KIT components in a more user friendly manner.

As you can see in the picture below KIT5 is made of KIT1 which is made of inventory items INVN-1 and INVN-2. In a simple scenario where a KIT is made only of inventory items you could easily find and access them from the item tab. In a complex case where your KIT is made of multiple KITS which in turn are made of multiple items you would have to dig different levels and open many tabs to be able to access the information and then use the information to create a complete list of the components.

Luckily, we at KeyStone Data developed a custom high level visual map which is available at the KIT level and lets you navigate through all the components of your KIT. The way we do this is through an IFRAME which access a SUITELET. The SUITELET finds out the children of your particular KIT and returns it in a HTML format.

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If you are interested about this bundle please give us a shout.

 

Hope this helps, Have a nice day!

KeyStone Data