Accounts Settings

Accounting Settings

ERP Next provides flexible accounting settings to align with your business rules. This guide explains how to configure these settings to handle various accounting scenarios effectively.

Settings for Transactions

1. Over Billing Allowance (%):

Indicate what proportion of transactions you are permitted to overbill. For instance, if the order value is 100 and the allowance is 20%, then you are allowed to bill for 120$.

2. Role Allowed to Over Bill:

Indicate which user role has the authority to overbill above the permitted percentage.

3. Check Supplier Invoice Number Uniqueness:

Prevent duplicate entries by ensuring Purchase Invoices with the same 'Supplier Invoice No' cannot be created.

4. Unlink Payment on Cancellation of Invoice:

unlink payments from invoices on cancellation. The invoices cannot be canceled by default if linked payments are present.

5. Fetch Payment Terms automatically from Order:

Fetch the payment terms from a Purchase/Sales Order and transfer them to the linked Purchase/Sales Invoice.

6. Remove Accounting and Stock Ledger Entries on Transaction Deletion:

Remove linked General Ledger and Stock Ledger Entries when deleting a transaction.

7. Book Asset Depreciation Entry Automatically:

Automatically post depreciation entries using the asset's depreciation settings.

8. Unlink Advance Payment on Cancellation of Order:

Unlink advance payments from Purchase/Sales Orders when they are cancelled.

9. Enable Common Party Accounting:

Post adjustment Journal Entries automatically for transactions with a common Customer and Supplier.

10. Allow Multi-Currency Invoices Against Single Party Account:

Enable issuing of multi-currency invoices for a single party account in the company's currency.

11. Create Ledger Entries for Change Amount:

Post change amount ledger entries in Point of Sale (POS) invoices.

12. Enable Discount Accounting:

Charge discounts on items in Sales Invoices.

Tax Settings

1.Determine address Tax Category From:

Choose whether to use the Shipping or Billing Address to ascertain the Tax Category.

2. Automatically include Taxes and Charges from Item Tax Template:

Fill the Taxes table in transactions if an Item Tax Template is defined for the chosen item.

3. Book Tax Loss on Early Payment Discount:

Break discount deductions from Income Loss and Tax Loss if an Early Payment Discount is being used.

Period Closing Settings

1. Accounts Frozen till Date:

Freeze accounting entries until a given date.

2. Role Allowed to Set Frozen Accounts and Edit Frozen Entries:

Identify which user role can alter frozen accounts and entries.

3. Credit Controller:

Provide users of this role permission to enter transactions with an amount more than the credit limit.

Deferred Accounting Settings

1. Book Deferred Entries Based On:

Specify if deferred revenue is booked depending on Days or Months. For Eg: If "Days" is selected and $12000 revenue has to be deferred over a period of 12 months, then $986.30 will be for the month having 30 days and $1019.17 will be booked for the month having 31 days. If "Months" is selected, $1000 deferred revenue will booked each month irrespective of the number of days in a month.

2. Automatically Process Deferred Accounting Entry:

Rotate deferred accounting entries automatically. Uncheck here to manually process entries.

3. Book Deferred Entries Via Journal Entry:

Present deferred revenue entries using Journal Entry and not directly into the ledger.