Accounting system

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eoStar provides General Ledger accounting information to the following accounting packages:

  1. Quickbooks
  2. Peachtree
  3. MAS 200/90
  4. Navision
  5. Microsoft Great Plains
  6. SAGE
  7. Intacct

The exported financial information includes data from:

Bank deposits are comprised of payments received from the customers, cash shortages, and driver expenses from the Daily Route Settlement.

Rules (GL Rules) are used to translate eoStar's data to your chart of accounts (GL Accounts).

eoStar directly handles the Accounts Receivables (sales and payments including EFT payments) and can produce driver and sales person commissions. It will also produce state tax reports.

Checks to suppliers are produced from the above accounting packages, and payroll is handled "outside" eoStar.

Inventory costing may be manually entered (eg. if you produce your own inventory), computed based on average purchases, or computed using a FIFO (First-in-first-out) calculation. The FIFO calculation is the most accurate as it accounts for cost fluctuations and usage patterns.

Rules are entered to determine how eoStar should send general journal entries to the accounting package.

Scope of eoStar as it pertains to accounting

There are some fundamental rules to keeping eoStar and your accounting package in sync. First, it is important to understand the scope of the data that eoStar maintains.

eoStar handles all financial information related to inventory, sales, and receivables as it pertains to a wholesale distribution company. Consequently, the detail of any transactions that affect this portion of your books should be fully maintained in eoStar, and the export to your accounting package will send summarized general journal entries.

eoStar is not an accounts payable package. It will track purchases of products into your warehouse for the purpose of maintaining accurate inventory levels, inventory valuation, and calculation of cost of goods sold. However, there is no functionality for producing checks. Therefore, the purchases are exported to the accounting package in two to three steps (depending on whether or not a separate freight bill is received):

  1. When the purchase is received, the purchases are exported through the GL Batches as general journal entries. The journal export of the purchase will debit an inventory account and credit an accrued payables account with the extended cost of the inventory as it is recorded on the purchase at the time of receipt. The accrued payables account is defined in the General Ledger interface setup screen, which can be found either on the GL Export Panel of the GL Batches or the AP Export screen.
  2. When the supplier bill is reconciled, the purchase is exported through the AP Export. The payables will debit the accrued payables account and credit the appropriate payables account for the supplier with the extended cost of the inventory as it was recorded during supplier bill reconciliation. If there was a cost adjustment, the original GL batch where the purchase was exported will have an adjusting entry to update the cost in the inventory and accrued payables account. See General Ledger Exports.
  3. If there is an additional freight bill, it may be exported via AP Export upon reconciliation. The freight bill will debit the accrued payables account and credit the appropriate payables account for the shipper

eoStar maintains minimal information about certain fixed assets such as trucks and small pieces of equipment, but solely for reporting purposes. The values of these items are not transferred from eoStar to the accounting package.

Additionally, eoStar can compute commissions for drivers and salespeople. However, this information is not transferred to the accounting package via the interface, nor are the checks processed from eoStar. Therefore, this information will need to be maintained by the user in the accounting package.

All other accounting related information (bank balances, investments, fixed assets, intangible assets, payroll, expenses, liabilities, equity, etc.) should be maintained in the accounting package.

Ap workflow.jpg

Processes to help keep eoStar synchronized with your accounting package

The exporting of data from eoStar and the importing it into the accounting package is a two step process. Since the process is not automated, you have the ability to review and cleanse the data prior to exporting it from eoStar.

Timing

Export in a timely fashion. There are no restrictions in eoStar requiring you to export at certain intervals. However, the smaller the intervals are between exports, the fewer transactions there will be, and the easier it will be to reconcile. If possible, finalize your ledger batches on a daily basis.

Close out

There are two options for closing out dates in eoStar. Neither is mandatory, but they can be useful in helping to restrict unwanted changes to reconciled dates in your accounting package.

The business day closeout will ensure that users do not enter or alter transactions in a closed out period. Orders waiting to be delivered will not be allowed to be stamped as delivered with a date prior to or on a close out date. The business day closeout is not mandatory.

Alternatively you can do a GL Closeout date. The GL closeout will allow adjustments to transactions prior to the GL closeout date, but the exports will not be permitted to insert anything into the accounting package prior to the GL closeout date. The transactions will show as an adjustment in the first day after the closeout period.

Export all relevant data

When you are trying to reconcile eoStar to your accounting package, ensure that all data relevant to the information you are trying to reconcile has been sent to the accounting package for the appropriate time frame.

Accounts Receivable - It is reasonable to expect that the accounts receivable balance in eoStar should match that in your accounting package as of a certain date. However, to do this, all data that affects the accounts receivable account(s) should be fully maintained in eoStar. Also, all transactions should be exported from eoStar and imported into your accounting package. The transactions in eoStar that affect accounts receivable are:

It is important to note that you have the ability to include bank deposits in a ledger batch for export. Selecting a bank deposit will automatically select the associated payments, charges, and orders (only orders that charge drivers for cash discrepancies can be included in a bank deposit). Generally, bank deposit exports will create a single line for the bank deposit that is sent over to the accounting package as a journal entry. However, there are circumstances which can cause the bank deposit to be split into multiple journal entries.

Inventory - It is also reasonable to expect the inventory valuation in eoStar to balance with the inventory as of a certain date. Again, to do this, all transactions affecting inventory through the timeframe being reconciled should be exported from eoStar and imported into the accounting package. The transactions within eoStar that affect inventory are:

Another factor in inventory valuation is FIFO Plugin. Since the cost on the FIFO layers can affect how the amount by which the inventory is being depleted by orders, transfers, and write-offs, it is important to periodically run the FIFO cost adjustments, export any resulting adjustments in previously exported ledger batches, and import them into the accounting package.

Payables - It is important to do not only the ledger export of the purchases to hit inventory, but also the AP export once the supplier bill and/or freight bill have been reconciled. This ensures that the accrued payables account is brought back down, and the amounts are transferred over to the payables account(s) for payment. The AP export will export all purchases that have been reconciled.

Create different bank deposits for different days

One situation that can cause a bank deposit to be split into multiple journal entries is having transactions from different days included on the bank deposit. When a payment is received in eoStar, it affects the accounts receivable balance of that customer, regardless of when the money was put into the bank. Therefore, to ensure easier reconciliation to your bank statement, create separate deposit IDs for separate dates.

Review the GL Results prior to finalizing the batch

eoStar has a GL Results panel within the GL batches. This panel allows you to review the journal entries prior to finalizing the batch. The entries can be exported to Excel and there are filters within the panel to allow you to look at the net effects of particular transaction types or the effects on particular accounts. This process is important because you cannot adjust transactions in a finalized ledger batch, with the exception of purchases that have been received, but not yet reconciled.

Import all that is exported (once and only once)

This seems like an elementary concept. However, it can be easy to accidentally export something, and either forget to import it or import it twice. It may be helpful to name the batches in a manner where it is easy to tie back to the originating batches, such as including the batch number in the name and appropriate extensions to the names for any ensuing adjustments to the batch.

Export one batch at a time, and import it into the accounting package as soon as it is exported.