In this task your accounting users will transfer AR vouchers to your financial accounting system.
Education:
Financial Transfer Guide - AR Voucher Transfer
Screen Help - AR Voucher Transfer
Training Task:
Output all vouchers listed to a spreadsheet transfer file.
AR Voucher Guideline
Transfer AR and AP vouchers in real time
Transfer AR and AP vouchers in real time immediately after each set of invoices is generated or entered so that AR and AP account balances and aging profiles are always current in your financial accounting system for financial planning purposes.
Do not skip using the financial transfer
Do not skip using the financial transfer because it is a mandatory process without which your company will have no accounting integrity. Even though you will be operating with two self-contained accounting systems, each system depends on the other for vital information. The WIP accounting in DBA, for example, relies on labor and overhead costing information from the financial accounting system to calculate shop rates. The financial accounting system will not have validity or useful value without AR and AP voucher invoices and manufacturing account totals.
Common Questions
Why can’t I transfer a detailed invoice to my financial accounting system?
Maintaining detailed invoices in both accounting systems may seem harmless, but it is highly undesirable and prohibited because it would introduce overlapping functions, data synchronization issues, and accounting problems.
Sales orders are handled by DBA because order entry, picking, and shipping are intimately associated with MRP and inventory. Invoices are generated from shipments and are the basis for a variety of sales data views and reports.
Accounts receivable is a financial accounting system function. For the purpose of tracking and collecting monies owed and paid by customers, only invoice total amounts are relevant, which is why a one-line voucher style invoice gets transferred.
It is not harmless to replicate the DBA invoice in your financial accounting system. All the line item detail -- meaning items, descriptions, quantities, notes, prices, discounts, costs, tax codes, tax amounts, sales accounts, COGS accounts, lot numbers, and serial numbers – would require supporting tables and values that would have to be synchronized with corresponding tables and values in DBA.
Invoice line detail would create duplicate GL postings. Each line must post to its own sales account, COGS account, and tax account. These postings have already occurred in DBA.
In order to include inventory items on invoices, inventory transactions are needed, which would require inventory transfers from DBA that introduce a host of issues maintaining inventory in two systems.
Duplicate invoices would also mean that an invoice is capable of being reversed and edited in either accounting system. Each such reversal would have to be reflected in the other side to keep invoices properly synchronized.
The integrity of the two accounting system design absolutely depends on the complete avoidance of duplicate functionality and data synchronization. Therefore, invoice detail is confined to the manufacturing system
WARNING: Be wary of any consultant who proposes to re-create detailed invoices in your accounting system. This indicates a fundamental misunderstanding of the financial transfer process or a lack of scruples in charging for a completely unnecessary feature that is inherently problematic and not in your best interest.
Can I use DBA without the financial transfer?
DBA cannot function properly without proper accounting. If you do not post to the general ledger or transfer vouchers and account totals to your financial accounting system, the manufacturing system cannot function with any success. General ledger transactions are essential for establishing shop rates, tracking inventory and WIP balances, accounting for absorbed costs, and tracking sales and cost of goods sold accounts. Without the financial transfer, it is not possible to have valid and useful financial reporting for business management or tax compliance.
How can I use the financial transfer without a data import capability?
All three financial transfers – AR Voucher Transfer, AP Voucher Transfer, and GL Summary Transfer – involve one-line totals without any line item or transaction detail. If your accounting system does not have an import utility for customer and supplier invoices or journal entries, these financial transfers can easily be made by manual entry as follows:
•To transfer an AR voucher invoice you simply enter the customer, invoice number, invoice date, terms code, and a single non-inventory line item for the invoice total amount.
•To transfer an AP voucher invoice you simply enter the supplier, invoice number, invoice date, terms code, account number, and a single amount for the invoice total.
•To transfer period end account totals, you simply enter a batch journal entry with a single debit and credit amount per active account.
The two voucher transfers are each reconciled against a transfer account as a safeguard against data entry errors. The period end batch journal entry must be in balance as a safeguard against data entry errors. Whether transfers are made through data import or manual entry, they only take a few minutes per day.
