After completing the Frisbii customization for Cloud Kicks, Candace talks with Mary.
Mary wants to get an export of the sales accounting entries.
Use Case for Sales ledger entries
Why does Mary want to set up the sales ledger entries?
Mary needs to have an overview of the entries she will generate. The entries are composed of at least 2 lines with equal amounts: Debit = Credit.
Once Mary has generated them, movements will be recorded in the different accounts linked to the Chart of Accounts, as well as in the Sales Journal. In fact, these entries follow very specific rules, by retrieving the accounting information entered on the invoice (e.g.: product accounting account, VAT accounting account, customer accounting account).
What is the purpose of the Sales Journal?
Simple! Mary will find, in the form of a report, her sales information recorded in the sales journal of her Frisbii application. She then exports her report to keep the accounting in a dedicated software, or transfer it to the Cloud Kicks' accountant.
Add the related list on the Invoice
Linda begins by adding the associated list of ledger entries to the page layout of the invoice. This manipulation will allow her to ensure the success of the generation of the entry because it is done in a transparent way.
Steps
Go to Setup > Object Manager > Invoice
Click on Page Layout
Click on your Page Layout
Click on Related Lists
Drag and drop the associated list Accounting entries
Save
Now you will find the associated list of ledger entries on the invoice records.
Manual generation of ledger entries
When an anomaly is detected during the automatic generation of the entry, the process can be stopped in order not to create an unbalanced entry. A report available in the package allows you to check that entries are not missing: Invoices issued without entries.
You have to then generate them manually.
Steps
Go to the Reports tab
Click on All Reports
Open the Invoices Issued Without Entries report
Click on a relevant invoice from the Invoice Name column
Click on Validate
On the invoice, click on the Generate ledger entry button
Click on Validate again
Go to the associated list to find the accounting entry created
Note: It is possible that it does not appear immediately in the related list, or that the display remains at 0 (Ledger entries(0)). This is often a cache problem. Please click on the associated list to display the entry directly.
It is also possible that the entry has still not been generated.
The rest of this article gives you the steps to follow in order to understand the anomalies. The article Sales ledger entries - Implementation will explain how to set up the generation of Sales ledger entries.
Conditions for the proper functioning of the ledger entries
In order for the entries to be generated, certain conditions must be set up and met on the following objects:
Corporate name
Chart of accounts
Account
Accounting data
Invoice line item
Let's start with the Corporate Name:
Corporate name
Activate ledger entries: this checkbox allows you to generate the accounting entry lines on the invoice when issuing an invoice with this corporate name.
Beware: if this box is not checked, no accounting entry line will be generated
Chart of accounts
The creation of the Chart of Accounts allows you to collect and classify, at the level of the accounting accounts, the information given on the invoice :
The customer accounting account "411".
The sales tax (VAT) accounting account "445".
The general sales accounting account "70" (e.g. 706 for the sale of services, such as subscriptions).
(this information is valid in France)
This creation is mandatory for the sales entries to be generated.
Account
In order to generate the ledger entries for sales, you must fill in these two fields on the account:
Auxiliary account
VAT account (optional)
Accounting data
Important: The accounting data is not mandatory for the sales ledger entries. If you do not use them, it is not necessary to configure them.
However, if you are already using them, please take into account these prerequisites:
It is the accounting information of an account (e.g.: billing contact, payment method etc…) that will be included on the invoice.
Please fill in the field Auxiliary account when creating the accounting data.
Beware: The auxiliary account field is more precisely the customer auxiliary account.
Here is the link to the Accounting data module first article : Accounting data - Field dictionary
Invoice line item
It is on the invoice line item that you are going to select the products to be invoiced but also indicate the Product account and the VAT account in order to associate them to the invoice.
Note: An invoice line item with a 0% VAT rate will not prevent the generation of the sales ledger entry, but no entry line will be generated for this VAT account.
Summary: The anomalies blocking the generation of ledger entries clouod be :
The absence of Accounting Data on the Invoice,
The absence of an Auxiliary Account on the accounting data,
The absence of a product account on an invoice line item,
The absence of a VAT Account (on an invoice line item concerned by VAT),
The management of ledger entries is disabled on the corporate name.
In the event of invoicing in a currency other than €
Use case #1: The company is based in France and applies French taxation, but invoices are issued to accounts located outside the Eurozone.
In this context, here is the configuration to be found in Frisbii:
Multi-currency is enabled in the Salesforce organization, and the “CurrencyIsoCode” field appears on all Salesforce and Frisbii objects. See the Salesforce articles for activation.
Exchange/conversion rates are entered in the Salesforce organization.
The billing country for the company name is France
The “CurrencyIsoCode” must be entered for the company name (e.g., enter “EUR” for a French company name).
To invoice an account located outside the Eurozone, the “CurrencyIsoCode” must be entered for the account (e.g., enter “GBP” to invoice an account in £) in order to obtain an invoice in £.
Impact on sales accounting entries:
If the company name currency is in €, an invoice for £120 on an account whose currency is GBP generates an accounting entry in € of €144.58 (applies the conversion rate).
Use case #2: The company is based outside the EU and applies the tax laws of the country in force; invoices are issued to accounts located outside the Eurozone.
In this context, here is the configuration to be found in Frisbii:
Multi-currency is enabled in the Salesforce organization, and the “CurrencyIsoCode” field appears on all Salesforce and Frisbii objects. See the Salesforce articles for activation.
Exchange/conversion rates are entered in the Salesforce organization.
The billing country for the company name is the same as the non-EU country.
The “CurrencyIsoCode” must be entered for the company name (e.g., enter “GBP” for a company name in the United Kingdom).
To invoice an Account located outside the Eurozone, you must enter the “CurrencyIsoCode” on your Account (e.g., enter “GBP” to invoice an Account in £) in order to obtain an invoice in £.
Impact on sales accounting entries:
If the company name currency is in £, an invoice for £120 on an account generates an accounting entry in £ of £120.