Frequently Asked Questions - Accounting

 


How do I issue a tax credit to my customer?

You can use either a Misc. A/R Credit Memo or a Sales Order Credit Memo to issue tax credits to your customers. The following example describes how to do this using the Misc. Credit Memo (although, the steps are very similar for Sales Order Credit Memos):

Example:

1. You need to credit Customer ABC for $25 tax
2. Open Misc. Credit Memo screen
3. Enter $25 in "Amount" field
4. Open "Tax" link
5. Create a new Tax Adjustment for $25
6. Post Credit Memo
7. View credit in Tax History report
8. Later: Apply Credit Memo to Customer open item

I applied cash to the wrong invoice. Can I undo that and start over?

Yes, beginning with xTuple ERP version 3.3.0 we added the ability to reverse (i.e., void) Cash Receipts from the Cash Receipts report screen, found under Accounting > Accounts Receivable > Reports. When you void a Cash Receipt, you also undo any applications made originally when the cash was applied.

Keep in mind, this works only for Cash Receipts entered in or after xTuple ERP version 3.3.0. Cash Receipts entered prior to 3.3.0 cannot be voided in this way. Also, any Credit Memos or Customer Deposits created from the unapplied balance when the original Cash Receipt was posted will not be reversed when a Cash Receipt is voided. Instead, a misc. A/R Debit Memo will be created in the amount of the original unapplied balance.

My balance sheet and income statement don't show the same profit amount. Any idea why?

One possible explanation for this is that the Basic Balance Sheet which ships with xTuple ERP is YTD. Therefore, the only way to balance it against the Basic Income Statement is to view the Income Statement as YTD, as well.

It's also possible you've customized your financial reports, and the profit calculations in each report definition don't match.

How do I enter my opening balances in the General Ledger?

We recommend entering G/L Chart of Account opening balances using one of two possible methods described in the document Entering Opening Balances.

How do I close the month?

The process of closing Accounting Periods and Fiscal Years requires an understanding of several xTuple ERP configuration options. This topic is covered fully in the Closing Procedures document.

In that document you will look at General Ledger (G/L) Account Number settings and how they relate to Accounting Periods that are open and/or frozen. Next, you will see two scenarios based on different configurations of these settings. Finally, you will see important issues to consider before closing Accounting Periods and Fiscal Years.

 

My trial balance isn't forwarding. What do I do?

Forward-updating carries the ending balance for an Accounting Period forward to the beginning balance of the next Accounting Period, continuing the process until the current Accounting Period is reached. Keep in mind that balances cannot be forward-updated into Periods that are in the future relative to the current Period.

Forwarding trial balances is discussed in the Closing Procedures document.