Part 7 of 12

Finance & accounting

Accounting works on the same data the rest of the organisation records; ledgers and financial statements are built from posted vouchers on the Persian calendar.

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Finance and accounting

Accounting in ARG ERP is not separate from the rest of the organisation. Invoices, payments, cheques, stock and production come from the same data the other departments record. Ledgers and financial statements are built from posted vouchers, on the organisation’s chart of accounts and the Persian calendar.

**Finance dashboard** · Revenue, gross and net profit, receivables and due dates, amounts owed to suppliers, cash flow and stock value

Chart of accounts

The chart of accounts has three levels: group, general ledger and subsidiary ledger, with floating detail accounts. Each account has a type (asset, liability, equity, revenue, cost of sales, expense and memorandum) and a debit or credit nature. For each account you can require a detail account, a cost centre or a project, so no line is posted without the information it needs. Cost centres are hierarchical and defined independently of the chart.

**Accounting dashboard** · Account headings by type, the current fiscal year and shortcuts to reports

Fiscal year and periods

A Persian fiscal year is defined with twelve periods plus a thirteenth period for year-end adjustments. The year is closed by posting a closing voucher, after which the closed year cannot be changed.

**Fiscal years** · The monthly periods of the year 1405

Accounting vouchers

Every voucher follows a defined flow: draft, review, final posting and, if needed, reversal with a counter-voucher. Before posting, the system checks that debits and credits balance and that each account’s requirements are met. A voucher can be copied with one click and each voucher has its own yearly sequential number.

**New voucher** · Voucher type, lines and balance check

Linking operations to accounting

During setup the organisation’s chart of accounts is loaded and the default accounts for operations are configured. From then on, issuing a sales invoice and completing a production work order create their own accounting voucher automatically, with no duplicate entry. Other events are recorded with manual vouchers and the review flow.

Ledgers and financial statements

Trial balance

Opening balance, period movement and closing balance of each account at every level, with a balance check.

General ledger

An account’s movements voucher by voucher with a running balance.

Balance sheet

Assets, liabilities and shareholders’ equity at a date.

Income statement

Revenue, cost of goods sold, expenses and net profit for a period.

**Trial balance** · Movement and balance of each heading

**General ledger** · Movements of the cash and bank account

**Balance sheet** · Assets, liabilities and shareholders’ equity

**Income statement** · Revenue, cost of sales and expenses

Cheques and VAT

The cheque book keeps received and issued cheques with their due dates and seven statuses, and shows the cheques coming due. The value-added tax report calculates, for each quarter, the tax on sales, the input tax credit on purchases and the net amount payable from the documents in the system.

**Cheque due dates** · Received and issued cheques

**VAT report** · Output and input tax for the quarter

**Cost centres** · Head office, production workshop and projects

See ARG ERP for your organisation

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