Accounting Software Procedures and Definitions
Procedure for Group Creation
Group creation in accounting software (e.g., Tally, QuickBooks) involves organizing ledger accounts under predefined categories to facilitate financial reporting. The steps include:
- Access Group Management: Navigate to the “Groups” or “Chart of Accounts” menu.
- Select Create Option: Choose the “Create New Group” or similar option.
- Enter Group Details: Provide a name, specify whether it’s a primary group or a subgroup, and assign its nature (e.g., Assets, Liabilities, Income, or Expense).
- Save the Group: Confirm and save the group to make it available for use in transactions.
Creation of Godown
A godown (or warehouse) is created in accounting software to track inventory movement and storage.
- Open Inventory Management: Go to the “Inventory” or “Stock Management” module.
- Choose Godown Creation: Select the option to create a new godown/warehouse.
- Provide Details: Enter the godown name, address, and any relevant configuration (e.g., linking to stock items).
- Set Parent Group: If applicable, associate the godown with a parent location.
- Save the Godown: Confirm the details to create the godown.
Accounting Vouchers
Accounting vouchers are documents that record business transactions in accounting systems. Types of vouchers include:
- Receipt Voucher: Records cash or bank receipts.
- Payment Voucher: Tracks payments made.
- Journal Voucher: Used for non-cash transactions, adjustments, or rectifications.
- Sales Voucher: Records sales transactions.
- Purchase Voucher: Logs purchases.
These vouchers ensure proper classification and accurate financial records.
Credit Note Voucher
A credit note voucher records returns or adjustments for goods sold or services rendered.
- When to Use: Issued when a customer returns goods, claims a discount, or requests an adjustment.
- Contents: Includes the customer’s name, date, amount, reason for credit, and reference to the original invoice.
- Recording: It reduces the sales ledger and impacts inventory or accounts receivable.
Define MIS
Management Information System (MIS) refers to a structured system that gathers, processes, and delivers information to help managers make informed decisions.
- Components: Includes data collection, processing, storage, and reporting.
- Purpose: Provides real-time or periodic insights into business performance, aiding in planning, monitoring, and control.
- Examples: Sales reports, inventory status, and financial statements.
How to Delete a Voucher
Steps to delete a voucher in accounting software:
- Locate the Voucher: Go to the “Voucher” or “Transactions” section.
- Search for Voucher: Use filters like voucher type, date, or amount to find the specific entry.
- Open the Voucher: Select the voucher to view its details.
- Choose Delete Option: Click on the “Delete” or “Remove” option. Confirm the action if prompted.
- Save Changes: Ensure the deletion is reflected in reports.
Note: Deleting a voucher may impact accounts, so proceed with caution.
Accounts Receivable
Accounts Receivable (AR) refers to the money owed to a business by its customers for goods or services sold on credit.
- Key Features:
- Recorded as a current asset in the balance sheet.
- Managed using invoices and payment tracking.
- Significance:
- Represents company liquidity.
- Requires regular follow-ups to maintain cash flow.
- Example: A company sells goods worth $5,000 on credit; this amount becomes an account receivable.
Sales Register
The sales register is a record of all sales transactions within a specific period.
- Details Included:
- Invoice numbers
- Date of transaction
- Customer details
- Amount of sales
- Tax details (if applicable)
- Purpose:
- Helps track revenue generation.
- Aids in tax filing and compliance.
- Format: May be organized by date, customer, or product for ease of reference.
- Example Use: Reviewing sales trends for monthly or annual analysis.