CREDIT NOTE
A credit note is a legal document issued by the seller to cancel an incorrect invoice (whose number must appear on the credit note) or to reimburse a purchase.
ANALYTICS
The analytical axes are attributes and values used to categorize entries so that they can be tracked and analyzed. They also enable to create highly personalized exports for accounting purposes.
The more analytical axes you use, the more you can base your business decisions on detailed reports.
For example, a single sales entry may contain several pieces of analytical information:
The account on which the sale of the item has been validated,
Where the item was sold,
Seller's name,
Type from customer who has made the purchase.
SALES JOURNAL CODE
The journal codeidentifies an accounting journal.
The journal must be linked to a part counter. This will increment the number each time a new part is entered in the journal.
SUBLEDGER ACCOUNTS
They enable the company to better track invoices and payments, so that it knows in real time what it owes its suppliers and what it owes its customers.
In this way, it will have details of the transactions carried out with each customer and supplier concerned.
In practice, the subdivision of third-party accounts into sub-accounts 401 Suppliers and 411 Customers is strongly recommended for companies with a large number of accounting entries.
The advantages of sub-ledger accounts are:
Save time by reducing the number of entries for each customer or supplier,
Facilitate lettering of accounts receivable and payable,
Prepare the annual review in the best possible conditions.
ACCOUNTING ACCOUNTS
An accounting account is an account in which the company records its financial actions. It consists of 6 digits and is defined in accordance with the rules of the French General Chart of Accounts (Plan Comptable Général - PCG). The first digit of the account represents the number of the class in which the transaction is to be recorded.
When you use Frisbii to bill your customers, you most often use the following accounts:
Account customer : 411
Account : 70
701: Sales of finished products
706: Services
707: Sale of goods
Sales tax account (VAT) : 445
SCHEDULES
A payment schedule is a document that shows the exact dates and amounts of debts or receivables due over a given period.
The Frisbii application offers two types of schedule:
A billing schedule includes several invoices which are made up of several payments, making it possible to specify :
Invoice dates,
The amounts on each invoice.
A payment schedule Invoice divided into several payments, specifying :
Payment dates,
The amounts on each settlement,
Comments to the regulations.
LEDGER ENTRIES
A ledger entry is a transaction that records an economic, commercial or financial flow in a company's accounts.
All these operations are recorded in journals (a general journal or a subsidiary journal), and form the basis of all accounting results.
The balance sheet and income statement depend on the accuracy of accounting entries. The aim is to obtain a complete and balanced balance sheet (debit = credit) at the end of the financial year.
LEDGER ENTRIES
A ledger entry is an operation that involves recording all the accounting entries relating to a company's sales.
For contractors using invoicing software, accounting entries are digitized and grouped together in accounting reports.
INVOICE
An invoice is a legally and fiscally binding accounting document, attesting to the purchase or sale of goods or services. The invoice cannot be modified or cancelled once it has been issued, but it can be cancelled by means of another reverse entry (the Credit Note).
The term Invoice must appear on the document to identify it as such.
PRO FORMA INVOICE
A provisional invoice, also known as a "commercial invoice", in which the words "Invoice proforma " must appear explicitly on the document.
The proforma invoice takes the form of a conventional invoice, but is not recorded in the accounts until it has been transformed into a final invoice.
It specifies the terms of the order, mainly content, price and conditions of sale.
CASH FLOWS
The cash flow refers to a company's incoming or outgoing cash flow over a specific period. They show how much money a company has actually earned over a given period.
INVOICE NUMBERING
The invoice number is an essential element of a proper invoice, helping to ensure error-free invoicing. The issuer of the invoice decides how to number it, the condition being that each invoice must be correlative to the previous one.
No two invoices may have the same number during the same accounting period (even if the customer or products are different).
To be valid, all invoices are required by law to have a unique number. Invoice numbers must be logical, chronological, continuous and uninterrupted. This is a way of identifying the invoice to distinguish it from other invoices created.
IMPUTATION
This technique is based on the chart of accounts and allows you to assign an accounting account to an accounting operation.
At the moment of the entered information in real time, the journal-book translates it into accounting terms and makes the allocation between accounts, i.e. chooses the credited account (which indicates the starting point of the value) and the debited account (which indicates the starting point of the value) and the debited account (which indicates the point of arrival of the value).
INDEXE
The index measures the variation or evolution of prices between a base period and a current period.
INTERCO
This is an accounting operation which consists of reconciling the accounting data of companies in the same group affected by intra-group transactions, in order to eliminate them.
This reconciliation mainly concerns the following operations:
Purchases and sales of goods or services between companies in the same group,
Financing granted between entities of the same company,
Intra-group disposals of fixed assets,
Dividend distributions between member companies of the same group.
MILESTONES
Billing milestones are scheduled dates when an invoice will be sent to the customer, based on a percentage of the total value of the service or product sold. At each stage, the customer pays the percentage of the agreed total value.
Each milestone of invoicing is made up of a date and a percentage of the total value the company wishes to invoice.
SALES JOURNAL
This is an accounting book containing all the accounting entries (invoices) made by a company in relation to the sales it has made. They must be carried out regularly and in chronological order.
CHART OF ACCOUNTS (PCG)
The general chart of accounts is an indispensable management tool that enables all companies to keep and harmonize their accounts. It defines all accounting standards and rules for the presentation and classification of financial statements.
There are 8 classes which are divided as follows
Classes 1, 2, 3, 4 and 5, which belong to the balance sheet
Classes 6 and 7, which are linked to the income statement
Class 8, which relates to ancillary documents
Here are the details of these classes :
Class 1: Capital accounts
Class 2: Fixed asset accounts
Class 3: Inventories and work-in-progress
Class 4: Third-party accounts
Class 5: Financial accounts
Class 6 : of expenses
Class 7 : The accounts of products
Class 8 : special accounts
Each account has its own subcategories.
PREPAID INCOME (PCA)
Deferred revenue refers to goods or services already invoiced by the company and recorded in the accounts, but not fully delivered to the customer.
Full delivery of the good or performance of the service will not take place until a future accounting period (e.g., a subscription).
For example, the sale of goods invoiced in December, but delivered in March of the following year, should be included in revenue for year N + 1.
At the close of the financial year in year N, a BCP will therefore have to be booked.
VAT
VAT is an indirect tax on consumption, paid by the purchaser and collected by the service provider, who then passes it on to the tax authorities.
Invoicing software such as Frisbii can manage different VAT rates and generate a complete report.