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Page 1 of 2 SunSystems Financials provides powerful account coding and analysis facilities that enable you to meet all of your financial and management information and reporting requirements.
It is important that you understand how SunSystems Financials uses the chart of accounts and analysis codes to analyze your financial data.
Every transaction that enters SunSystems Financials must be posted to a ledger account which is identified by a chart of accounts (account) code.
The chart of accounts codes are the foundation for your financial reporting. A ledger account will exist for each type of expense, revenue, asset and liability you need to account for and report on.
Each account in the chart of accounts is identified by an account code that can contain up to 15 characters. This is the code you reference when you want to post transactions to an account.
The system allows you to use any coding structure you require, within the 15 characters available. This account coding structure is extremely important and a significant part of the implementation process is usually spent designing this coding structure to ensure it supports your primary reporting requirements.
Many SunSystems functions, such as Payment Run, allow you to enter a range of codes to select the accounts you require. It is therefore important that similar accounts are grouped together within a logical range of codes.
Each account also has a separate, 15 character, lookup code which can be used to find the account if you don't know the code. For example, the lookup code might contain a shortened version of the account description.
Financials operates as a single integrated ledger, which means that separate ledger accounts are also held for each supplier and customer. There is not need to maintain and reconcile debtor/receivables or creditor/payables control accounts. Each SunSystems account is assigned an account type which determines how the account is treated for processing and reporting. These are six account types available: Debtor (Receivable) / Customer accounts - these hold details of customers who purchase goods/services from your company. Each debtor/receivables account should be linked to a customer that contains a large amount of additional information including address and communication details, currency options, payment terms, and tax details. Creditor (Payable) / Supplier accounts - these hold details of suppliers from whom you purchase goods/services. Each creditor/payables account should be linked to a supplier that contains a large amount of additional information including address and communication details, currency options, payment terms, and tax details. Client accounts - these hold details of organizations from whom you purchase goods/service and to whom you also supply goods/services. They do not fit into the category of either debtor or creditor. One month, if the account balance is credit, you might need to raise a payment and print a remittance or cheque. The next month, if the account balance is debit, you might need a statement to be printed for the same account. These are typically used for inter-company accounts where netting off is used Profit & Loss accounts - these record details of income and expenditure, which are reported on your profit and loss statement. Balance Sheet accounts - these record details of assets and liabilities, which are reported on your balance sheet statement. Memo accounts - these hold non-financial data that should not be included in the trial balance
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If you are adding a debtor/receivables, creditor/payables or client account you should use Customer Setup (CUS) or Supplier Setup (SUS) to create the chart of accounts code and define all of the other customer/supplier related details required e.g. payment terms, tax requirements, order entry details etc. Using Customer Setup or Supplier Setup ensures that the debtor/receivables, creditor/payables and client chart of account codes are linked to a customer or supplier. If you do choose to create a debtor/receivables, creditor/payables or client account using Chart of Accounts Setup, you must reference the account code on the appropriate customer or supplier details using Customer Setup or Supplier Setup as a separate step.
Debtor and Creditor accounts can, however, be created using Supplier Setup or Customer Setup rather than in Chart of Accounts Setup – see the later sections for more information on this. There are four tabs, which may require information to be set up on them: General Account Analysis Transaction Analysis - Currency
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Let’s now create a new expense account for Salaries using the Chart of Account Setup session. Click here to see the screenshot Status A status is assigned to each static reference record, for example to every account, asset, customer and supplier. It determines the current processing status of the record. Open - this status is set automatically when you add a new record e.g. if you create a new account. Open items are available for input, inquiry, processing and reporting. Hidden - a record with a hidden status does not appear on any inquiries but is available for input, processing and reporting. Suspended/Held - a suspended record. Closed/Completed - a closed record cannot be used for input or processing. For example, you cannot post transactions to a closed account or analysis code. You can alter the status of a record at any time. You must use the options on the Action menu to change the status. Short Heading The Short Heading is a shortened version of the Description to be used instead where space is limited. If you leave this blank it defaults to the first characters of the Description. Description The full name or description of the data item or record. This is used to identify it on reports and inquiries. Lookup Code A Lookup Code can be used to find a record, as an alternative to the record code. It is often set to a shortened version of the description. It is particularly useful if a record is often referred to using different codes. For example: the Chart of Accounts code for Fuel Expenses is 75201 and the Lookup code is set to FUELEXP. the Customer code for WHSmith is set to WHSmith and the Lookup code is set to SMITHWH. Account TypeSelect the type of account you want to create: Debtor, Creditor, Client, P&L, Balance Sheet or Memo. A Client account is used when a customer is also a supplier, or vice versa, and therefore the balance at any time might be debit or credit. A Memo account contains non-financial data of any time. Balance Type
This indicates whether this account is a Balance Forward or an Open Item account.
Balance forward accounts are summarized during Ledger Cleardown, regardless of the allocation markers on individual transactions. The detailed transactions are summarized into a single balance transaction per accounting period. The transactions are archived and are no longer available in certain reports or in inquiries. Profit and Loss and Balance Sheet accounts are normally classified as balance forward to minimize the number of historical transactions retained. An exception to this might be the bank account. On open item accounts, only allocated transactions are summarized during Ledger Cleardown. Normally debtor, creditor and client accounts are open item. The bank account may also be nominated as an open item account, for reconciliation purposes.
Credit Limit
Enter the amount in base currency of credit available on this account. Leave this blank if the account has no credit limit. Overdue Invoice LimitEnter the amount of overdue invoices allowed for this account. |
Sun Documentation 
