In this task you and all users who will interact with the financial transfer will review the Financial Transfer Guide to gain a conceptual understanding of financial transfer issues before proceeding with financial transfer setup.
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Financial Transfer Screenshot Series
DBA Financial Transfer Overview
Through our many years of experience, we have come up with a practical accounting configuration that is a breakthrough for small manufacturing companies. All of the detail of your manufacturing accounting is handled in DBA and summary AR, AP and GL entries are made into your financial accounting system.
The Financial Transfer greatly simplifies implementation
Our financial transfer design allows you to keep your banking, payroll, and financial general ledger intact and you add powerful manufacturing accounting to your company. Most ERP systems require a change of your entire accounting practices along with the implementation of the software. This is a major explanation for the extremely high failure rate of the software in our industry. Our approach makes the DBA Implementation methodology the best and easiest in the business.
Do not attempt to use pieces or devise your own methods
Our financial accounting approach is well thought out and has full accounting integrity. DBA acts as a sub-ledger to your financial accounting general ledger and the debit and credit transactions will always tie down and balance. Some companies make the error of attempting to use pieces of program or they try to improve of the program by bringing over detailed transactions. You must use Sales Orders, Invoices, Purchase Orders, PO Invoices, Jobs, and Inventory exclusively in DBA. If you use the program as designed, you will can benefit from our decades of experience helping small companies succeed.
There will be fewer transactions between the two systems than you think
Many companies worry that there is a large amount of data exchange required between DBA and their accounting system. There is less data that needs to be synced up between your two systems than you may think. DBA will hold all of the transactional detail of your manufacturing and inventory operations. You will make summary entries of your AR and AP vouchers and summary GL entries to our financial accounting general ledger. Because these entries are summary, it is practical to make these manually. If you prefer, you can import your summary entries using our .csv financial transfer sheets.
The two systems will be in balance
Some companies worry that having two systems increases the likelihood of errors. When you make the summary AR, AP and GL entries in your financial general ledger, the debits and credits must all tie down. The entries themselves act as a check and balance to the overall accounting system. DBA acts as a sub-ledger to your financial general ledger and if you follow our proven methodology all of the transactions will balance. If an error is made when making the summary entries, it will immediately show up in your GL
You will reorganize your Chart of Accounts to Isolate your costs for production workers and manufacturing overhead
One of the new concepts that DBA brings to the table is absorbed accounting for your Labor and Manufacturing Overhead. In your accounting setup, you will be organizing your chart of accounts cost of sales section, so you can more easily isolate your costs for your production workers and the costs that you designate as manufacturing overhead. This reorganization will help align your income statement to more properly handle your absorbed costs. These costs will also be used to periodically update your calculated Shop Rates (BOM>Shop Rates) so that you get a more accurate reflection of your Labor and Manufacturing Overhead costs in the items that you manufacture.
Inventory will be handled exclusively in DBA
As part of the Startup Day routine, you will be drawing down your inventory in your financial accounting system and initiating your Initial Stock Quantities and values in DBA. The quantities and valuation at Startup Day will exactly equal the value for your inventory in your inventory account in your financial accounting system. This is an absolutely critical concept that your inventory ties down to your transactions in DBA at the outset. You cannot run in parallel and have inventory quantities in both DBA and your financial accounting system. Because there is quite a lot going on with work in process and special absorbed costing in DBA, it is imperative that you start with a good handle on your inventory. If you start out in balance, then all transactions in DBA will flow through to your financial accounting system automatically and you will always remain in balance.
DBA has its own taxation system - do not attempt to track tax detail in your financial accounting system
DBA has its own taxation system, which includes taxable and non-taxable tax codes, tax authorities, default sales and purchase tax codes, and tax code exceptions at the customer, item, and supplier level. The tax system is designed to accommodate international VAT/GST and USA style taxation.
We have a proven track record of success
DBA has pioneered the financial transfer approach and we have many hundreds of companies that have been able to implement our system without the need for outside help. We recommend that you read the entire Financial Transfer Guide to get a more detailed overview of our approach.
