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diff --git a/doc/manual/LedgerSMB-manual.txt b/doc/manual/LedgerSMB-manual.txt new file mode 100644 index 00000000..9a00a16b --- /dev/null +++ b/doc/manual/LedgerSMB-manual.txt @@ -0,0 +1,3749 @@ +TITLE: Ledger-SMB Manual v. 1.2 +AUTHOR: The LedgerSMB Core Team + +The LedgerSMB Core Team +Copyright 2006 The LedgerSMB Core Team. Permission +is granted to copy, distribute and/or modify this document under the +terms of the GNU Free Documentation License, Version 1.2 or any later +version published by the Free Software Foundation; with no Invariant +Sections, no Front-Cover Texts, and no Back-Cover Texts. A copy of +the license is included in the section entitled +"GNU Free Documentation License" (Appendix fdl). + + + + + + + + + +PART: Ledger-SMB and Business Processes + +Ledger-SMB and Business Processes + + +SECTION: Introduction to Ledger-SMB + +Introduction to Ledger-SMB + + +SUBSECTION: Why Ledger-SMB + +Why Ledger-SMB + + +SUBSUBSECTION: Advantages of Ledger-SMB + +Advantages of Ledger-SMB + + Flexibility and Central Management + Accessibility over the Internet (for some users) + Relatively open data format + Integration with other tools + Excellent accounting options for Linux users + Open Source + Flexible, open framework that can be extended or modified to fit +your business. + Security-conscious development community. + +SUBSUBSECTION: Key Features + +Key Features + + Accounts Receivable + + Track sales by customer + Issue Invoices, Statements, Receipts, and more + Do job costing and time entry for customer projects + Manage sales orders and quotations + Ship items from sales orders + Accounts Payable + + Track purchases and debts by vendor + Issue RFQ's Purchase Orders, etc. + Track items received from purchase orders + Budgeting + + Track expenditures and income across multiple departments + Track all transactions across departments + Check Printing + + Customize template for any check form + General Ledger + Inventory Management + + Track sales and orders of parts + Track cost of goods sold using First In/First Out method + List all parts below reorder point + Track ordering requirements + Track, ship, receive, and transfer parts to and from multiple warehouses + Localization + + Provide Localized Translations for Part Descriptions + Provide Localized Templates for Invoices, Orders, Checks, and more + Select language per customer, invoice, order, etc. + Manufacturing + + Track cost of goods sold for manufactured goods (assemblies) + Create assemblies and stock assemblies, tracking materials on hand + Multi-company/Multiuser + + One isolated database per company + Users can have localized systems independent of company data set + Point of Sale + + Run multiple cash registers against main Ledger-SMB installation + Suitable for retail stores and more + Credit card processing via TrustCommerce + Supports some POS hardware out of the box including: + + Logic Controls PD3000 pole displays (serial or parallel) + Basic text-based receipt printers + Keyboard wedge barcode scanners + Keyboard wedge magnetic card readers + Printer-attached cash drawers + Price Matrix + + Track different prices for vendors and customers across the board + Provide discounts to groups of customers per item or across the board + Store vendors' prices independent of the other last cost in the parts +record + Reporting + + Supports all basic financial statements + Easily display customer history, sales data, and additional information + Open framework allows for ODBC connections to be used to generate +reports using third party reporting tools. + Tax + + Supports Retail Sales Tax and Value Added Tax type systems + Flexible framework allows one to customize reports to change the tax +reporting framework to meet any local requirement. + +SUBSECTION: Limitations of Ledger-SMB + +Limitations of Ledger-SMB + + No payroll module (Payroll must be done manually) + Some integration limitations + Further development/maintenance requires a knowledge of a relatively +broad range of technologies + +SUBSECTION: System Requirements of Ledger-SMB + +System Requirements of Ledger-SMB + + PostgreSQL + A CGI-enabled Web Server (for example, Apache) + Perl 5.8.x + An operating system which supports the above software (usually Linux, +though Windows, MacOS X, etc. do work) + + (optional) is required to create PDF or Postscript invoices + The following CPAN modules: + + Data::Dumper + Locale::Maketext + Locale::Maketext::Lexicon + MIME::Base64 + Digest::MD5 + HTML::Entities + DBI + DBD::Pg + Math::BigFloat + IO::File + Encode + Locale::Country + Locale::Language + Time::Local + Cwd + Config::Std + MIME::Lite + +SECTION: User Account and Database Administration Basics + +User Account and Database Administration Basics + +These functions are accessed via the admin.pl script in the +installed directory of Ledger-SMB. + + +SUBSECTION: Companies and Datasets + +Companies and Datasets + +Ledger-SMB stores its information in locale-specific data sets. When +a dataset is created, it sets various defaults such as currency, a +basic chart of accounts setup, and so forth. Note that the default +setup is for Canada, where the author of the software resides. + +Datasets are stored as PostgreSQL databases. The application +is designed with the idea that each dataset will represent exactly +one company. If a customer is working with multiple companies, he/she +must create a dataset to for each. + +When creating a dataset, the application asks for both a username and a +superusername. If the superuser's information is not filled in, Ledger-SMB will +attempt to populate an existing dataset, but if this information is filled in, +the program will log into the PostgreSQL cluster with the superusername and +password, create the database, and attempt to add Plpgsql to it. + +SUBSECTION: How to Create a User + +How to Create a User + +Users are created by going to the admin.pl page and clicking on ` +"Add +User.` +" One then fills out the form and when it is saved, +the user is created. + + +SUBSECTION: Permissions + +Permissions + +The permissions system is not rigorously enforced within Ledger-SMB, +in the sense that the permissions API is generally not used in the +application itself. Instead permissions are used to enable/disable +menu options. Setting an enforcement of such permissions would require +some custom programming at the present time. Most organizations, however, +find that the current system is adequate. + +The checkboxes which are marked enable menu entries. Those that are +unchecked disable those entries on the menu. + + +SUBSECTION: User Account Types + +User Account Types + + User is a general user of the system + Managers often are able to see a larger amount of data + Administrators have full access to the system + +SUBSECTION: Other Features + +Other Features + + Lock System allows one to lock users out of the system while maintenance +is performed. This is only necessary during upgrades or maintenance +which results in the RDBMS being offline. + Change Admin Password changes the administrative password. + Logout terminates the admin session. + +SECTION: Chart of Accounts + +Chart of Accounts + +The Chart of Accounts provides a basic overview of the logical structure +of the accounting program. One can customize this chart to allow for +tracking of different sorts of information. + + +SUBSECTION: Introduction to Double Entry Bookkeeping + +Introduction to Double Entry Bookkeeping +In order to set up your chart of accounts in LedgerSMB you will need to +understand a bit about double entry bookkeeping. This section provides a +brief overview of the essential concepts. There is a list of references +for further reading at the end. + +SUBSUBSECTION: Business Entity + +Business Entity +You don't want to mix your personal expenses and income with that of the +business or you will not be able to tell how much money it is making (if +any). For the same reason you will want to keep track of how much money +you put into and take out of the business so you will want to set up a +completely seperate set of records for it and treat it almost as if it had +a life of its own. + +SUBSUBSECTION: Double Entry + +Double Entry +Examples: + When you buy you pay money and receive goods. + When you sell you get money and give goods. + When you borrow you get money and give a promise to pay it back. + When you lend you give money and get a promise to pay it back. + When you sell on credit you give goods and get a promise to pay. + When you buy on credit you give a promise to pay and get goods. + +You need to record both sides of each transaction: thus double entry. +Furthermore, you want to organize your entries, recording those having to +do with money in one place, value of goods bought and sold in another, +money owed in yet another, etc. Hence you create accounts, and record each +half of each transaction in an appropriate account. Of course, you won't +have to actually record the amount in more than one place yourself: the +program takes care of that. + +SUBSUBSECTION: Accounts + +Accounts + +[Assets] Valuable stuff the business owns such as money and +goods available for sale +[Liabilities] Debts owned by the business such as bank loans and unpaid +bills +[Equity or Capital] What would be left for the owner if all the assets were +converted to money and all the liabilities paid off ("Share Capital" on the +LedgerSMB default chart of accounts: not to be confused with "Capital Assets".) +[Revenue] Income from business activity: increases Equity +[Expense] The light bill, the cost of goods sold, etc: decreases Equity + +All other accounts are subdivisions of these. The relationship between the +top-level accounts is often stated in the form of the Accounting Equation +(don't worry: you won't have to solve it): + +Assets = Liabilities + Equity + (Revenue - Expense) + +You won't actually use this equation while doing your bookkeeping, but it's +a useful tool for understanding how the system works. + +SUBSUBSECTION: Debits and Credits + +Debits and Credits + +Traditional paper accounting systems used a two-column form in which all +increases went in one column and all deceases in the other. For asset and +expense accounts increases went in the left column and decreases in the +right. For liability and capital accounts decreases went in the left +column and increases in the right. Looking at the accounting equation we +see that assets are on the left, so it is logical that asset increases +would go on the left. Libilities, capital, and revenue are on the right so +it is logical that their increase would go on the right. Expenses, +however, are on the right, so why do their increases go on the left? +Because expenses are subtracted from the right side of the equation and so +expense increases decrease the right side of the equation. + +Entries in the left column of the traditional form are called debits, while +entries on the right are called credits. Neither is "negative". + + Debits increase assets + Debits increase expense + Credits increase liabilities + Credits increase capital + Credits increase revenue + +Examples: + +You go to the bank and make a deposit. The teller tells you that he is +going to credit your account. This is correct: your account is money the +bank owes you and so is a liability from their point of view. Your deposit +increased this liability and so they will credit it. They will make an +equal debit to their cash account. When you return you will debit your +bank deposits account because you have increased that asset and credit cash +on hand because you have decreased that one. + + +SUBSUBSECTION: Accrual + +Accrual + +Early accounting systems were usually run on a cash basis. One generally did +not consider money owed to affect the financial health of a company, so expenses +posted when paid as did income. + +The problem with this approach is that it becomes very difficult or impossible +to truly understand the exact nature of the financial health of a business. One +cannot get the full picture of the financial health of a business because +outstanding debts are not considered. Futhermore, this does not allow for +revenue to be tied to cost effectively, so it becomes difficult to assess how +profitable a given activity truly is. + +To solve this problem, accrual-based systems were designed. The basic principle +is that income and expense should be posted as they are incurred, or accrued. +This allows one to track income relative to expense for specific projects or +operations, and make better decisions about which activities will help one +maximize profitability. + +To show how these systems differ, imagine that you bill a customer for time and +materials for a project you have just completed. The customer pays the bill +after 30 days. In a cash based system, you would post the income at the time +when the customer pays, while in an accrual system, the income is posted at the +time when the project is completed. + +SUBSUBSECTION: References + +References + +http://www.accounting-and-bookkeeping-tips.com/learning-accounting/accounting-basics-credit.htm + +Discussion of debits and credits as well as links to other accounting subjects. + + + http://www.computer-consulting.com/accttips.htm + +Discussion of double entry bookkeeping. + + + http://www.minnesota.com/~tom/sql-ledger/howtos/ + +A short glossary, some links, and a FAQ (which makes the "credit=negative +number" error). The FAQ focuses on SQL-Ledger, LedgerSMB's ancestor. + + + http://bitscafe.com/pub2/etp/sql-ledger-notes +#expenses\ +Some notes on using SQL-Ledger (LedgerSMB's ancestor). + + + http://en.wikipedia.org/wiki/List + +Wikipedia articles on accounting. + + + http://www.bized.ac.uk/learn/accounting/financial/index.htm + +Basic accounting tutorial. + + + http://www.asset-analysis.com/glossary/glo.html + +Financial dictionary and glossary. + + + http://www.geocities.com/chapleaucree/educational/FinanceHandbook.html + +Financial glossary. + + + http://www.quickmba.com/accounting/fin/ + +Explanation of fundamentals of accounting, including good discussions +of debits and credits and of double-entry. + + +SUBSECTION: General Guidelines on Numbering Accounts + +General Guidelines on Numbering Accounts + +In general, most drop-down boxes in Ledger-SMB order the accounts +by account number. Therefore by setting appropriate account numbers, +one can affect the default values. + +A second consideration is to try to keep things under each heading +appropriate to that heading. Thus setting an account number for a +bank loan account in the assets category is not generally advisable. + + +SUBSECTION: Adding/Modifying Accounts + +Adding/Modifying Accounts + +These features are listed under System- Chart of Accounts. +One can list the accounts and click on the account number to modify +them or click on the ` +"add account`\" option to create +new accounts. + + Headings are just broad categories and do not store values themselves, +while accounts are used to store the transactional information. + One cannot have an account that is a summary account (like AR) +and also has another function. + GIFI is mostly of interest to Canadian customers but it can be used +to create reports of account hierarchies. + +SUBSECTION: Listing Account Balances and Transactions + +Listing Account Balances and Transactions + +One can list the account balances via the Reports- Chart +of Accounts report. Clicking on the account number will provide a +ledger for that account. + + +SECTION: Administration + +Administration + +This section covers other (non-Chart of Accounts) aspects to the +setup of the Ledger-SMB accounting package. These are generally accessed +in the System submenu. + + +SUBSECTION: Taxes, Defaults, and Preferences + +Taxes, Defaults, and Preferences +One of the new features in 1.2 is the modular sales tax system and the simple +sales tax module. This allows one to install different tax modules and then +select which taxes are applied by which programming modules. The sales tax +module has access to everything on the submitted form so it is able to make +complex determinations on what is taxable based on arbitrary criteria. + +The tax rules drop-down box allows one to select any installed tax module +(LedgerSMB 1.2 ships only with the simple module), while the ordering is an +integer which allows one to specify a tax run which occurs on the form after +any rules with lower entries in this box. This allows for compounding of sales tax (for example, when PST applies to the total and GST as well). + +SUBSUBSECTION: Adding A Sales Tax Account + +Adding A Sales Tax Account + +Sales Tax is collected on behalf of a state or national government +by the individual store. Thus a sales tax account is a liability-- +it represents money owed by the business to the government. + +To add a sales tax account, create an account in the Chart of Accounts +as a liability account, check all of the ` +"tax`\" checkboxes, +and answer the following question as ` +"yes:`\" + +` +"Include this account on the customer/vendor forms to flag +customer/vendor as taxable?` +" + +Once this account is created, one can set the tax amount. + + +SUBSUBSECTION: Setting a Sales Tax Amount + +Setting a Sales Tax Amount + +Go to System- Defaults and the tax account will be listed +near the bottom of the page. The rate can be set there. + + +SUBSUBSECTION: Default Account Setup + +Default Account Setup + +These accounts are the default accounts for part creation and foreign +exchange tracking. + + +SUBSUBSECTION: Currency Setup + +Currency Setup + +The US accounts list this as USD:CAD:EUR. One can add other currencies +in here, such as IDR (Indonesian Rupiah), etc. Currencies are separated +by colons. + + +SUBSUBSECTION: Sequence Settings + +Sequence Settings + +These sequences are used to generate user identifiers for quotations, +invoices, and the like. If an identifier is not added, the next number +will be used. + +A common application is to set invoices, etc. to start at 1000 in +order to hide the number of issued invoices from a customer. + +Leading zeros are preserved. Other special values which can be embedded using +$<$?lsmb ?$>$ tags include: + +[DATE] expands to the current date +[YYMMDD] expands to a six-digit version of the date. The components of +this date can be re-arranged in any order, so MMDDYY, DDMMYY, +or even just MMYY are all options. +[NAME] expands to the name of the customer or vendor +[BUSINESS] expands to the type of business assigned to the customer or +ventor. +[DESCRIPTION] expands to the description of the part. Valid only for parts. +[ITEM] expands to the item field. Valid only for parts. +[PERISCOPE] expands to the partsgroup. Valid only for parts. +[PHONE] expands to the telephoen number for customers and vendors. + +SUBSECTION: Audit Control + +Audit Control + +Auditability is a core concern of the architects of any accounting +system. Such ensures that any modification to the accounting information +leaves a trail which can be followed to determine the nature of the +change. Audits can help ensure that the data in the accounting system +is meaningful and accurate, and that no foul play (such as embezzlement) +is occurring. + + +SUBSUBSECTION: Explaining transaction reversal + +Explaining transaction reversal + +In paper accounting systems, it was necessary to have a means to authoritatively +track corrections of mistakes. The means by which this was done was +known as ` +"transaction reversal.`\" + +When a mistake would be made, one would then reverse the transaction +and then enter it in correctly. For example, let us say that an office +was renting space for +$300 per month. Let us say that they inadvertently +entered it in as a +$200 expense. + +The original transaction would be: + +Account & Debit & Credit +5760 Rent & $200 & +2100 Accounts Payable & & $200 + +The reversal would be: + +Account & Debit & Credit +5760 Rent & & $200 +2100 Accounts Payable & $200 & + + +This would be followed by re-entering the rent data with the correct +numbers. This was meant to ensure that one did not erase data from +the accounting books (and as such that erasing data would be a sign +of foul play). + +Ledger-SMB has a capability to require such reversals if the business +deems this to be necessary. When this option is enabled, existing +transactions cannot be modified and one will need to post reversing +transactions to void existing transactions before posting corrected +ones. + +Most accountants prefer this means to other audit trails because it +is well proven and understood by them. + + +SUBSUBSECTION: Close books option + +Close books option + +You cannot alter a transaction that was entered before the closing date. + + +SUBSUBSECTION: Audit Trails + +Audit Trails + +This option stores additional information in the database to help +auditors trace individual transactions. The information stored, however, +is limited and it is intended to be supplemental to other auditing +facilities. + +The information added includes which table stored the record, which +employee entered the information, which form was used, and what the +action was. No direct financial information is included. + + +SUBSECTION: Departments + +Departments + +Departments are logical divisions of a business. They allow for budgets +to be prepared for the individual department as well as the business +as a whole. This allows larger businesses to use Ledger-SMB to meet +their needs. + + +SUBSUBSECTION: Cost v Profit Centers. + +Cost v Profit Centers. + +In general business units are divided into cost and profit centers. +Cost centers are generally regarded as business units where the business +expects to lose money and profit centers are where they expect to +gain money. For example, the legal department in most companies is +a cost center. + +One of the serious misunderstandings people run up against is that +Ledger-SMB tends to more narrowly define cost and profit centers than +most businesses do. In Ledger-SMB a cost center is any department +of the business that does not issue AR transactions. Although many +businesses may have cost centers (like technical support) where customer +fees may subsidize the cost of providing the service, in Ledger-SMB, +these are profit centers. + +Ledger-SMB will not allow cost centers to be associated with AR transactions. +So if you want this functionality, you must create the department +as a profit center. + + +SUBSECTION: Warehouses + +Warehouses + +Ledger-SMB has the ability to track inventory by warehouse. Inventory +items can be moved between warehouses, and shipped from any warehouse +where the item is in stock. We will explore this concept more later. + + +SUBSECTION: Languages + +Languages + +Languages allow for goods and services to be translated so that one +can maintain offices in different countries and allow for different +goods and service descriptions to be translated to different languages +for localization purposes. + + +SUBSECTION: Types of Businesses + +Types of Businesses + +One can create types of businesses and then give them discounts across +the board. For example, one might give a firm that uses one's services +as a subcontractor a 10 + + + +SUBSECTION: Misc. + +Misc. + + +SUBSUBSECTION: GIFI + +GIFI + +GIFI is a requirement for Canadian customers. This feature allows +one to link accounts with Canadian tax codes to simplify the reporting +process. Some European countries now use a similar system. + +People that don't otherwise have a use for GIFI can use it to create reports +which agregate accounts together. + +SUBSUBSECTION: SIC + +SIC + +Standard Industrial Classification is a way of tracking the type of +business that a vendor or customer is in. For example, an accountant +would have an SIC of 8721 while a graphic design firm would have an +SIC of 7336. The classification is hierarchical so one could use this +field for custom reporting and marketing purposes. + + +SUBSUBSECTION: Overview of Template Editing + +Overview of Template Editing + +The templates for invoices, orders, and the like can be edited from +within Ledger-SMB. The submenus within the System submenu such as +HTML Templates, Text Templates and templates provide access +to this functionality. + + +SUBSUBSECTION: Year-end + +Year-end + +Although the Year-end functionality in Ledger-SMB is very useful, +it does not entirely make the process simple and painless. One must +still manually enter adjustments prior to closing the books. The extent +to which these adjustments are necessary for any given business is +a matter best discussed with an accountant. + +The standard way books are normally closed at the end of the year +is by moving all adjusted +Adjustments would be entered via the General Ledger. The exact process +is beyond the scope of this document, however. + income and expenses to an equity account usually called ` +"Retained +Earnings.` +" Assets and liabilities are not moved. Equity drawing/dividend +accounts are also moved, but the investment accounts are not. The +reasoning behind this process is that one wants a permanent record +of the amount invested in a business, but any dividends ought not +to count against their recipients when new investors are brought on +board. + +Ledger-SMB automatically moves all income and expense into the specified +year-end/retained earnings account. It does not move the drawing account, +and this must be done manually, nor does it automate the process of +making adjustments. + +Contrary to its name, this function can close the books at any time, +though this would likely be of limited use. + + +SUBSECTION: Options in the ledger-smb.conf + +Options in the ledger-smb.conf + +The ledger-smb.conf configures the software by assigning site-wide +variables. Most of these should be left alone unless one knows what +one is doing. However, on some systems some options might need to +be changed, so all options are presented here for reference: + +[templates] is the directory where the templates are stored. +[sendmail] is the command to use to send a message. It must read the +email from standard input. +[language] allows one to set the language for the login screen and +admin page. +[latex] tells Ledger-SMB whether is installed. is +required for generating Postscript and PDF invoices and the like. +[Environmental variables] can be set here too. One +can add paths for searching for , etc. +[Printers] section can be used to set a hash table of printers for the software. +The primary example is + +$[$printers$]$ + +Default = lpr + +Color = lpr -PEpson +\% + However, this can use any program that can accept print documents +(in Postscript) from standard input, so there are many more possibilities. + + +SECTION: Goods and Services + +Goods and Services + +The Goods and Services module will focus on the definition of goods +and services and the related accounting concepts. + + +SUBSECTION: Basic Terms + +Basic Terms + + [COGS] is Cost of Goods Sold. When an item is sold, then the expense +of its purchase is accrued as attached to the income of the sale. + [List] Price is the recommended retail price. + [Markup] is the percentage increase that is applied to the last +cost to get the sell price. + [ROP] is re-order point. Items with fewer in stock than this will +show up on short reports. + [Sell] Price is the price at which the item is sold. + +SUBSECTION: The Price Matrix + +The Price Matrix + +It is possible to set different prices for different groups of customers, +or for different customers individually. Similarly, one can track +different prices from different vendors along with the required lead +time for an order. + + +SUBSECTION: Pricegroups + +Pricegroups + +Pricegroups are used to help determine the discount a given customer +may have. + + +SUBSECTION: Groups + +Groups + +Groups represent a way of categorizing POS items for a touchscreen +environment. It is not fully functional yet, but is sufficient that +with some stylesheet changes, it could be made to work. + + +SUBSECTION: Labor/Overhead + +Labor/Overhead + +Labor/overhead is usually used for tracking manufacturing expenses. +It is not directly billed to a customer. It is associated with an +expense/Cost of Goods Sold (COGS) account. + + +SUBSECTION: Services + +Services + +Services include any labor that is billed directly to the customer. +It is associated with an expense/COGS account and an income account. +Services can be associated with sales tax. + + +SUBSUBSECTION: Shipping and Handling as a Service + +Shipping and Handling as a Service + +One approach to dealing with shipping and handling is to add it as +a service. Create a service called ``Shipping and Handling'', +with a sell price +$1 per unit, and a 0\% markup. Bill it as \$1 per +unit. This allows one to add the exact amount of shipping and handling +as necessary. + + +SUBSECTION: Parts + +Parts + +A part is any single item you might purchase and either might resell +or use in manufacturing an assembly. It is linked to an expense/COGS +account, an income account, and an inventory account. Parts can be +associated with sales tax. + + +SUBSECTION: Assemblies and Manufacturing + +Assemblies and Manufacturing + +Manufacturers order parts but they sell the products of their efforts. +Ledger-SMB supports manufacturing using the concept of assemblies. +An assembly is any product which is manufactured on site. It consists +of a selection of parts, services, and/or labor and overhead. Assemblies +are treated as parts in most other regards. + +However, one cannot order assemblies from vendors. One must instead +order the components and stock them once they are manufactured. + + +SUBSUBSECTION: Stocking Assemblies + +Stocking Assemblies + +One stocks assemblies in the Stock Assembly entry on the Goods and +Services submenu. When an assembly is stocked the inventory is adjusted +properly. + +The Check Inventory option will cause Ledger-SMB to refuse to stock +an assembly if the inventory required to produce the assembly would +drop the part below the reorder point. + + +SUBSECTION: Reporting + +Reporting + + +SUBSUBSECTION: All Items and Parts Reports + +All Items and Parts Reports + +The All Items report provides a unified view of assemblies, parts, services, +and labor for the company, while the Parts report confines it to parts. + +Types of reports are: + + [Active] lists all items not marked as obsolete. + [On] Hand lists current inventory . + [Short] Lists all items which are stocked below their ROP. + [Obsolete] Lists all items which are marked as obsolete. + [Orphaned] Lists all items which have never had a transaction associated +with them. +One can also list these goods by invoice, order, or quotation. + +For best results, it is a good idea to enter some AR and AP data before +running these reports. + + +SUBSUBSECTION: Requirements + +Requirements + +This report is designed to assist managers determine the quantities +of goods to order and/or stock. It compares the quantity on hand with +the activity in a given time frame and provides a list of goods which +need to be ordered and the relevant quantity. + + +SUBSUBSECTION: Services and Labor + +Services and Labor + +This is similar to the Parts and All Items menu but only supports +Active, Obsolete, and Orphaned reports. + + +SUBSUBSECTION: Assemblies + +Assemblies + +This is similar to the Parts and All Items reports but it also provides +an ability to list individual items in the assemblies as well. + +AP Invoices, Purchase Orders, and RFQ's are not available on this +report. + + +SUBSUBSECTION: Groups and Pricegroups + +Groups and Pricegroups + +These reports provide a simple interface for locating groups and pricegroups. +The report types are similar to what they are for services. + + +SUBSECTION: Translations + +Translations + +One can add translations so that they show up in the customer's native +language in the issued invoice. + +To issue translations, one must have languages defined. One can then +add translations to descriptions and part groups. + + +SUBSECTION: How Cost of Goods Sold is tracked + +How Cost of Goods Sold is tracked + +Cost of Goods Sold is tracked on a First-In, First-out (FIFO) basis. +When a part is purchased, its cost is recorded in the database. The +cost of the item is then added to the inventory asset account. When +the good is sold, the cost of the item is moved to the cost of goods +sold account. + +This means that one must actually provide invoices for all goods entered +at their actual cost. If one enters in +$0 for the cost, the cost +of goods sold will also be +$0 when the item is sold. We will cover +this entire process in more depth after we cover the AP and AR units +below. + + +SECTION: AP + +AP + + +SUBSECTION: Basic AP Concepts + +Basic AP Concepts + +The Accounts Payable module tracks all financial commitments that +the company makes to other businesses. This includes rent, utilities, +etc. as well as orders of goods and services. + + +SUBSECTION: Vendors + +Vendors + +A vendor is any business that the company agrees to pay money to. + +One can enter vendor information under AP- Vendors- +Add Vendor. The vendor list can be searched under AP- +Vendors- Reports- Search. + +Enter start and end-dates for each vendor. This will make searches +and drop-down boxes faster when some vendors are no longer actively +supporting your company. + +A few fields that need explanation are: + + [BIC] Bank Identifier Code is often the same as the S.W.I.F.T. +code. This is a code for the bank a customer uses for automated money +transfers. + [IBAN] International Bank Account Number is related to the BIC +and is used for cross-border automated money transfers. + [Terms] is the number of days one has to pay the invoice. + [Vendor] Number is automatically generated. + +SUBSECTION: AP Transactions + +AP Transactions + +AP Transactions are generally used for items other than goods and +services. Utilities, rent, travel expenses, etc. could be entered +in as an AP transaction. + +If the item is paid partially or in full when the transaction is entered, +one can add payments to the payment section. + +All other payments can and should be entered under cash payment (below). + +The PO Number and Order Number fields are generally used to track +associations with purchase orders sent to vendors, etc. These fields +can be helpful for adding misc. expenses to orders for reporting purposes. + +The department drop-down box appears when one has created one or more +departments. A transaction is not required to be associated with a +department, but one can use this feature for budget tracking. + +With AP Transactions, there is no option for internal notes. All notes +will appear on any printed version of the transaction. + +Note: Printing a transaction does not post it. No data is committed +until the invoice is posted. + + +SUBSECTION: AP Invoices + +AP Invoices + +AP Invoices are used to enter in the receipt of goods and services. +Goods and services are deemed entered into the inventory when they +are invoiced. + +This screen is reasonably similar to the AP Transaction Screen, though +the part entry section is a bit different. + +The AP Invoice section has a capacity to separate internal notes from +notes printed on the invoice. Note, however, that since these are +received invoices, it is rare that one needs this ability. + +Note that Ledger-SMB can search for partial part numbers or descriptions. + +Also if you have a group you can use this to select the part. + +To remove a line item from an invoice or order, delete the partnumber +and click update. + + +SUBSUBSECTION: Correcting an AP Invoice + +Correcting an AP Invoice + +If an invoice is entered improperly, the methods used to correct it +will vary depending on whether transaction reversal is enforced or +not. If transaction reversal is not enforced, one can simply correct +the invoice or transaction and repost. Note, however, that this violates +generally accepted accounting principles. + +If transaction reversal is in effect, one needs to create a duplicate +invoice with exactly opposite values entered. If one part was listed as +received, then one should enter a negative one for the quantity. Then one +can enter the invoice number as the same as the old one. Add an R to the +end to show that it is a reversing transaction. Once this is posted, one can +enter the invoice correctly. + + +SUBSECTION: Cash payment And Check Printing + +Cash payment And Check Printing + +It is a bad idea to repost invoices/transactions just to enter a payment. +The Cash- Payment window allows one to enter payments against +AP invoices or transactions. + +The printing capability can be used to print checks. The default template +is NEBS 9085, though you can use 9082 as well (as Quickbooks does). + +The source field is used to store an identifying number of the source +document, such as the check number. One must select the item to have +it paid, and then enter the amount. One can then print a check. + + +SUBSUBSECTION: Rapid Payment Entry Screen + +Rapid Payment Entry Screen + +One can also use the rapid payment entry screen to print multiple +checks. However, this does not allow you to print the multiple checks +to the screen as a separate document is created for each check. In +this event, one must print directly to a printer as postscript. + + +SUBSECTION: Transaction/Invoice Reporting + +Transaction/Invoice Reporting + + +SUBSUBSECTION: Transactions Report + +Transactions Report + +This report is designed to help you locate AP transactions based on +various criteria. One can search by vendor, invoice number, department, +and the like. One can even search by the shipping method. + +The summary button will show what was placed where, while the details +button will show all debits and credits associated with the transaction. + +To view the invoice, click on the invoice number. In the detail view, +to view the account transactions as a whole, click on the account +number. + +Open invoices are ones not fully paid off, while closed invoices +are those that have been paid. + + +SUBSUBSECTION: Outstanding Report + +Outstanding Report + +The outstanding report is designed to help you locate AP transactions +that are not paid yet. The ID field is mostly useful for locating +the specific database record if a duplicate invoice number exists. + + +SUBSUBSECTION: AP Aging Report + +AP Aging Report + +This report can tell you how many invoices are past due and by how +much. + +A summary report just shows vendors while a detail report shows individual +invoices. + + +SUBSUBSECTION: Tax Paid and Non-taxable Report + +Tax Paid and Non-taxable Report + +These reports have known issues. It is better to use the GL reports and filter +accordingly. + +SUBSECTION: Vendor Reporting + +Vendor Reporting + + +SUBSUBSECTION: Vendor Search + +Vendor Search + +The Vendor Search screen can be used to locate vendors or AP transactions +associated with those vendors. + +The basic types of reports are: + + [All] Lists all vendors + [Active] Lists those vendors currently active + [Inactive] Lists those vendors who are currently inactive. time +frame. + [Orphaned] Lists those vendors who do not have transactions associated +with them. These vendors can be deleted. +One can include purchase orders, Requests for Quotations, AP invoices, +and AP transactions on this report as well if they occur between the +from and to dates. + + +SUBSUBSECTION: Vendor History + +Vendor History + +This report can be used to obtain information about the past goods +and services ordered or received from vendors. One can find quantities, +partnumber, and sell prices on this report. This facility can be used +to search RFQ's, Purchase Orders, and AP Invoices. + + +SECTION: AR + +AR + + +SUBSECTION: Customers + +Customers + +Customers are entered in using the AR- Customers- +Add Customer menu. + +The salesperson is autopopulated with the current user who is logged +in. Otherwise, it looks fairly similar to the Vendor input screen. +Customers, like vendors can be assigned languages, but it is more +important to do so because invoices will be printed and sent to them. + +The credit limit field can be used to assign an amount that one is +willing to do for a customer on credit. + + +SUBSUBSECTION: Customer Price Matrix + +Customer Price Matrix + +The price list button can be used to enter specific discounts to the +customer, and groups of customers can be assigned a pricegroup for +the purpose of offering specific discounts on specific parts to the +customer. Such discounts can be temporary or permanent. + + +SUBSECTION: AR Transactions + +AR Transactions + +AR Transactions are where one can add moneys owed the business by +customers. One can associate these transactions with income accounts, +and add payments if the item is paid when the invoice is issued. + +The PO number field is used to track the PO that the customer sent. +This makes it easier to find items when a customer is asking for clarification +on a bill, for example. + + +SUBSECTION: AR Invoices + +AR Invoices + +AR Invoices are designed to provide for the delivery of goods and +services to customers. One would normally issue these invoices at +the time when the everything has been done that is necessary to get +paid by the customer. + +As with AP invoices, one can search for matches to partial part numbers +and descriptions, and enter initial payments at this screen. + + +SUBSECTION: Cash Receipt + +Cash Receipt + +The Cash- Receipt screen allows you to accept prepayments +from customers or pay single or multiple invoices after they have +been posted. One can print a receipt, however the current templates +seem to be based on check printing templates and so are unsuitable +for this purpose. This presents a great opportunity for improvement. + + +SUBSUBSECTION: Cash Receipts for multiple customers + +Cash Receipts for multiple customers + +The cash- receipts screen allows you to accept payments +on all open customer invoices of all customers at once. One could +print (directly to a printer only) all receipts to be sent out if +this was desired. + + +SUBSECTION: AR Transaction Reporting + +AR Transaction Reporting + +The AR Outstanding report is almost identical to the AP Outstanding +report and is not covered in any detail in this document. + + +SUBSUBSECTION: AR Transactions Report + +AR Transactions Report + +This is almost identical to the AP Transactions Report. + +If a customer's PO has been associated with this transaction, one +can search under this field as well. + + +SUBSUBSECTION: AR Aging Report + +AR Aging Report + +This report is almost identical to the AP Aging report, with the exception +that one can print up statements for customer accounts that are overdue. +One more application is to calculate interest based on balance owed +so that these can be entered as AR transactions associated with the +customer. + + +SUBSECTION: Customer Reporting + +Customer Reporting + +These reports are almost identical to the AP Vendor reports and are +not discussed in these notes. + + +SECTION: Projects + +Projects + + +SUBSECTION: Project Basics + +Project Basics + +A project is a logical collection of AR and AP transactions, orders, +and the like that allow one to better manage specific service or product +offerings. Ledger-SMB does not offer comprehensive project management +capabilities, and projects are only used here as they relate to accounting. + +One can also add translated descriptions to the project names as well. + + +SUBSECTION: Timecards + +Timecards + +Timecards allow one to track time entered on specific services. These +can then be used to generate invoices for the time entered. + +The non-chargeable is the number of hours that are not billed on the +invoice. + +One can then generate invoices based on this information. + +The project field is not optional. + + +SUBSECTION: Projects and Invoices + +Projects and Invoices + +One can select the project id for line items of both AR and AP invoices. +These will then be tracked against the project itself. + + +SUBSECTION: Reporting + +Reporting + + +SUBSUBSECTION: Timecard Reporting + +Timecard Reporting + +The Timecard Report allows one to search for timecards associated +with one or more projects. One can then use the total time in issuing +invoices (this is not automated yet). + + +SUBSUBSECTION: Project Transaction Reporting + +Project Transaction Reporting + +The Standard or GIFI options can be used to create different reports +(for example, for Canadian Tax reporting purposes). + +This report brings up a summary that looks sort of like a chart of +accounts. Of one clicks on the account numbers, one can see the transactions +associated with the project. + + +SUBSUBSECTION: List of Projects + +List of Projects + +This provides a simple way of searching for projects to edit or modify. + + +SUBSECTION: Possibilities for Using Projects + +Possibilities for Using Projects + + One can use them similar to departments for tracking work done for +a variety of customers. + One can use them for customer-specific projects, such as this training. + +SECTION: Quotations and Order Management + +Quotations and Order Management + +This unit will introduce the business processes that Ledger-SMB allows. +These processes are designed to allow various types of businesses +to manage their orders and allow for rudimentary customer relationship +management processes to be built around this software. In this section, +we will introduce the work flow options that many businesses may use +in their day-to-day use of the software. + + +SUBSECTION: Sales Orders + +Sales Orders + +Sales orders represent orders from customers that have not been delivered +or shipped yet. These orders can be for work in the future, for +back ordered products, or work in progress. A sales order can be generated +form an AR invoice or from a quotation automatically. + + +SUBSECTION: Quotations + +Quotations + +Quotations are offers made to a customer but to which the customer +has not committed to the work. Quotations can be created from Sales +orders or AR Invoice automatically. + + +SUBSECTION: Shipping + +Shipping + +The Shipping module (Shipping- Shipping) allows one to +ship portions or entireties of existing sales orders, printing pick +lists and packing slips. + +One can then generate invoices for those parts that were shipped. + +In general, one will be more likely to use these features if they +have multiple warehouses that they ship from. More likely most customers +will just generate invoices from orders. + + +SUBSECTION: AR Work Flow + +AR Work Flow + + +SUBSUBSECTION: Service Example + +Service Example + +A customer contacts your firm and asks for a quote on some services. +Your company would create a quotation for the job and email it to +the customer or print it and mail it. Once the customer agrees to +pay, one creates a sales order from the quotation. + +When the work is completed, the sales order is converted into a sales +invoice and this is presented to the customer as a bill. + +Note that in some cases, this procedure may be shortened. If the customer +places an order without asking for a quotation and is offered a verbal +quote, then one might merely prepare the sales order. + + + + + +CAPTION: Simple AR Service Invoice Workflow Example + +Simple AR Service Invoice Workflow Example + +simple_ar_dataflow + + + +SUBSUBSECTION: Single Warehouse Example + +Single Warehouse Example + +A customer contacts your firm and asks for a quotation for shipping +a part. You would create the quotation and when you get confirmation, +convert it to an order. Once the parts are in place you could go to +shipping and ship the part. + +The billing department can then generate the invoice from the sales +order based on what merchandise has been shipped and mail it to the +customer. + +Note that this requires that you have the part in your inventory. + + + + + +CAPTION: AR Workflow with Shipping + +AR Workflow with Shipping + +ar_workflow_ship + + + +SUBSUBSECTION: Multiple Warehouse Example + +Multiple Warehouse Example + +A customer contacts your firm and asks for a quotation for a number +of different parts. You would create a quotation and when you get +confirmation, convert it to a sales order. When you go to ship the item, +you would select the warehouse in the drop-down menu, and select the +parts to ship. One would repeat with other warehouses until the entire +order is shipped. + +Then the billing department would go to the sales order and generate +the invoice. It would then be mailed to the customer. + + + + + +CAPTION: Complex AR Workflow with Shipping + +Complex AR Workflow with Shipping + +ar_workflow_complex + + + +SUBSECTION: Requests for Quotation (RFQ) + +Requests for Quotation (RFQ) + +A request for quotation would be a formal document one might submit +to a vendor to ask for a quote on a product or service they might +offer. These can be generated from Purchase Orders or AP Invoices. + + +SUBSECTION: Purchase Orders + +Purchase Orders + +A purchase order is a confirmation that is issued to the vendor to +order the product or service. Many businesses will require a purchase +order with certain terms in order to begin work on a product. These +can be generated from RFQ's or AP Invoices. + + +SUBSECTION: Receiving + +Receiving + +The Shipping- Receiving screen allows you to track the +parts received from an existing purchase order. Like shipping, it +does not post an invoice but tracks the received parts in the order. + + +SUBSECTION: AP Work Flow + +AP Work Flow + + +SUBSUBSECTION: Bookkeeper entering the received items, order completed in full + +Bookkeeper entering the received items, order completed in full + +Your company inquires about the price of a given good or service from +another firm. You submit an RFQ to the vendor, and finding that the +price is reasonable, you convert it to an order, adjust the price +to what they have quoted, and save it. When the goods are delivered +you convert the order into an AP invoice and post it. + + + + + +CAPTION: Simple AP Workflow + +Simple AP Workflow + +simple_ap_workflow + + + +SUBSUBSECTION: Bookkeeper entering received items, order completed in part + +Bookkeeper entering received items, order completed in part + +Your company inquires about the price of a given good or service from +another firm, You submit an RFQ to the vendor, and finding that the +price is acceptable, you convert it into an order, adjusting the price +to what they have quoted, and save it. When some of the goods are +received, you open up the purchase order, enter the number of parts +received, convert that order into an invoice, and post it. Repeat +until all parts are received. + + + + + +CAPTION: AP Workflow with Receiving + +AP Workflow with Receiving + +ap_workflow_ship + + + +SUBSUBSECTION: Receiving staff entering items + +Receiving staff entering items + +Your company inquires about the price of a given good or service from +another firm, You submit an RFQ to the vendor, and finding that the +price is acceptable, you convert it into an order, adjusting the price +to what they have quoted, and save it. When some or all of the goods +are received, the receiving staff goes to Shipping-Receiving, locates +the purchase order, and fills in the number of items received. + +The bookkeeper can then determine when all items have been received +and post the invoice at that time. + + + + + +CAPTION: Complex AP Workflow + +Complex AP Workflow + +ap_workflow_complex + + + +SUBSECTION: Generation and Consolidation + +Generation and Consolidation + + +SUBSUBSECTION: Generation + +Generation + +The Generation screen allows you to generate Purchase Orders based +on sales orders. One selects the sales orders one wants to use, and +clicks ` +"Generate Purchase Orders.`\" Then one selects +clicks on the parts to order, adjusts the quantity if necessary, and +clicks ` +"Select Vendor.`\" This process is repeated +for every vendor required. Then the Generate Orders button is clicked. + + +SUBSUBSECTION: Consolidation + +Consolidation + +One can consolidate sales and/or purchase orders using this screen. +For the consolidation to work you must have more than one order associated +with the relevant customer or vendor. + + +SUBSECTION: Reporting + +Reporting + +The reporting functionality in the order management is largely limited +to the ability to locate purchase orders, sales orders, RFQ's, and +quotations. + + +SUBSECTION: Shipping Module: Transferring Inventory between Warehouses + +Shipping Module: Transferring Inventory between Warehouses + +One can transfer inventory between warehouses if necessary by using +the Shipping- Transfer Inventory screen. + + +SECTION: HR + +HR + +The HR module is currently limited to tracking employees for and their +start and end dates. It has very little other functionality. One could +build payroll systems that could integrate with it however. + + +SECTION: POS + +POS + +LedgerSMB 1.2 includes a number of components merged from Metatron Technology +Consulting's SL-POS. Although it is still not a perfect solution, it is greatly improved in both workflow and hardware support. It is suitable for retail +establishments at the moment. + +SUBSECTION: Sales Screen + +Sales Screen + +The sales screen looks very much like a normal invoice entry screen +with a few differences. + + The discount text field is not available, nor is the unit field.. + The next part number is automatically focused when the data loads +for rapid data entry. + Hot keys for the buttons are Alt-U for update, Alt-P for print, Alt-O +for post, and Alt-R for print and post. + Part Groups appear at the bottom of the screen. + Alt-N moves the cursor to the next free payment line. + +SUBSECTION: Possibilities for Data Entry + +Possibilities for Data Entry + + Barcode scanners can be used to scan items in as they are being rung +in. + One could use touch screens, though this would ideally require some +custom stylesheets to make it efficient. + +SUBSECTION: Hardware Support + +Hardware Support + +As LedgerSMB is a web-based application, the web browser usually +does not allow the page to write to arbitrary files. Therefore hardware +support for pole displays, etc. is not readily possible from the application +itself. LedgerSMB gets around this limitation by using an additional set of +network sockets from the server to the client to control its hardware. This +naturally requires that other software is also running on the client. + +Notes for specific types of hardware are as follows: + + [Touch] screens: The default stylesheet is not really usable from +a touchscreen as the items are often too small. One would need to +modify the stylesheets to ensure that the relevant items would be +reasonable. Setting down the resolution would also help. + [Receipt] Printers: ESC/POS printers generally work in text mode. +Control sequences can be embedded in the template as necessary. + [Pole] Displays: Generally supported. Only the Logic Controls PD3000 is +supported out of the box, but making this work for other models ought to be +trivial. + [Cash] Drawers: These should be attached to the printer. The control +codes is then specified in the pos.conf.pl so that the command is sent to the +printer when the open till button is pushed. + [Barcode] Scanners: Most customers use decoded barcode scanners +through a keyboard wedge interface. This allows them to scan items +as if they were typing them on the keyboard. + +SUBSECTION: Reports + +Reports + + +SUBSUBSECTION: Open Invoices + +Open Invoices + +The POS- Open screen allows one to find any POS receipts +that are not entirely paid off. + + +SUBSUBSECTION: Receipts + +Receipts + +The POS- Receipts screen allows one to bring up a basic +record of the POS terminals. It is not sufficient for closing the +till, however, though it may help for reconciliation. + +The till column is the last component or octet of the terminal's IP +address. Therefore it is a good idea to try to avoid having IP addresses +where the last octet is the same. + +All entries are grouped by date and source in this report. + + +SECTION: General Ledger + +General Ledger + + +SUBSECTION: GL Basics + +GL Basics + +The General Ledger is the heart of Ledger-SMB. Indeed, Ledger-SMB +is designed to be as close as possible to a software equivalent of +a paper-based accounting program (but with no difference between the +General Ledger and General Journal). + + +SUBSUBSECTION: Paper-based accounting systems and the GL + +Paper-based accounting systems and the GL + +In order to understand the principle of the General Ledger, one must +have a basic understanding of the general process of bookkeeping using +double-entry paper-based accounting systems. + +Normally when a transaction would be recorded, it would first be recorded +in the ` +"General Journal`\" which would contain detailed +information about the transaction, notes, etc. Then the entries from +the General Journal would be transcribed to the General Ledger, where +one could keep closer tabs on what was going on in each account. + +In the general journal, all transactions are listed chronologically +with whatever commentary is deemed necessary, while in the general +ledger each account has its own page and transactions are recorded +in a simple and terse manner. The General Journal is the first place +the transaction is recorded and the General Ledger is the last. + +At the end of the accounting period, the GL transactions would be +summarized into a trial balance and this would be used for creating +financial statements and closing the books at the end of the year. + + +SUBSUBSECTION: Double Entry Examples on Paper + +Double Entry Examples on Paper + +Let us say that John starts his business with an initial investment +of +$10,000. + +This is recorded in the General Journal as follows (in this example, +suppose it is page 1): + + +Date & Accounts and Explanation & Ref & DEBIT & CREDIT +March 1 & Checking Account & 1060 & 10000.00 & + & John Doe Capital & 3011 & & 10000.00 + & John Doe began a business & & & + & with an investment of & & & + & $10000 & & & + + + + +This would then be transcribed into two pages of the General Ledger. +The first page might be the Checking Account page: + + + +DATE & EXPLANATION & REF. & DEBITS & DATE & EXPLANATION & REF. & CREDITS +March 1 & & J1 & 10000.00 & & & & + + + + +On the John Doe Capital page, we would add a similar entry: + + + +DATE & EXPLANATION & REF. & DEBITS & DATE & EXPLANATION & REF. & CREDITS + & & & & March 1 & & J1 & 10000.00 + + + + +SUBSUBSECTION: The GL in Ledger-SMB + +The GL in Ledger-SMB + +The paper-based accounting procedure works well when one is stuck +with paper recording requirements but it has one serious deficiency--- +all of this transcribing creates an opportunity for errors. + +Relational databases relieve the need for such transcription as it +is possible to store everything physically in a way similar to the +way a General Journal is used in the paper-based systems and then +present the same information in ways which are more closely related +to the General Ledger book. + +This is the exact way that the General Ledger is used in Ledger-SMB. +The actual data is entered and stored as if it was a general journal, +and then the data can be presented in any number of different ways. + +All modules of Ledger-SMB that involve COA accounts store their data +in the General Ledger (it is a little more complex than this but this +is very close to the actual mechanism). + + +SUBSECTION: Cash Transfer + +Cash Transfer + +The simplest form of GL entry in Ledger-SMB is the Cash- +Transfer screen. This screen shows two transaction lines, and fields +for reference, department, description, and notes. + +The field descriptions are as follows: + + [Reference] refers to the source document for the transfer. One +can use transfer sheets, bank receipt numbers, etc for this field. + [Description] is optional but really should be filled in. It ought +to be a description of the transaction. + [Notes] provide supplemental information for the transaction. + [FX] indicates whether foreign exchange is a factor in this transaction. + [Debit] indicates money going into the asset account. + [Credit] indicates money coming out of the asset account. + [Source] is the source document for that portion of the transaction. + [Memo] lists additional information as necessary. + [Project] allows you to assign this line to a project. +The credit and debit options seem to be the opposite of what one would +think of concerning one's bank account. The reason is that your bank +statement is done from the bank's point of view. Your bank account balance +is an asset to you and therefor you show it as having a debit balance, but +to the bank it is money they owe you and so they show it as having a credit +balance. + +Note that in this screen, when an item is updated, it will reduce +the number of lines to those already filled in plus an extra line +for the new line in the data entry. + + +SUBSECTION: GL Transactions + +GL Transactions + +The GL Transaction screen (General Ledger- Add Transaction) +is identical to the Cash Transfer screen with the exception that it +starts with nine lines instead of two. Otherwise, they are identical. + +Again, one must be careful with debits and credits. Often it is easy +to get confused. It is generally worth while to go back to the principle +that one tracks them with regard to their impact on the equity accounts. +So expenses are credits because they debit the equity accounts, and +income is a debit because it credits the retained earning equity account. + + +SUBSECTION: Payroll as a GL transaction + +Payroll as a GL transaction + +Currently payroll must be done as a GL transaction. The attempts to +create a payroll system that would ship with LSMB have largely stalled. + +Most customers running their businesses will have an idea of how to +do this. + + + + + +CAPTION: Payroll as a GL Transaction (Purely fictitious numbers) + +Payroll as a GL Transaction (Purely fictitious numbers) + +[Table, & separates fields, 5 fields per row. ] +Account & +Debit & +Credit & +5101 Wages and Salaries & +500 & + +2032 Accrued Wages & +& +450 +2033 Fed. Income Tax wthd & +& +30 +2034 State Inc. Tax. wthd & +& +15 +2035 Social Security wthd & +& +3 +2036 Medicare wthd & +& +2 +2032 Accrued Wages & +450 & + +1060 Checking Acct & +& +450 + + + + +SUBSECTION: Reconciliation + +Reconciliation + +To reconcile an account (say, when one would get a checking account +statement), one would go to cash/reconciliation, and check off the +items that have cleared. One can then attempt to determine where any +errors lie by comparing the total on the statement with the total +that LSMB generates. + +This can be done for other accounts too, such as petty cash. +Petty cash denotes a drawer of cash that is used to pay small expenses. +When an expense is paid, it is recorded on a slip of paper that is +stored for reconciliation purposes. + + + +SUBSECTION: Reports + +Reports + +The most flexible report in Ledger-SMB is the GL report because it +has access to the entire set of financial transactions of a business. +Every invoice posted, payment made or received, etc. can be located +here. + +The search criteria include: + + [Reference] is the invoice number, or other reference number associated +with the transaction. + [Source] is the field related to the source document number in +a payment or other transaction. +Source documents are things like receipts, canceled checks, etc. that +can be used to verify the existence and nature of a transaction. + + [Memo] relates to the memo field on a payment. + [Department] can be used to filter results by department. + [Account] Type can be used to filter results by type of account +(Asset, Liability, etc.) + [Description] can be used to filter by GL description or by +customer/vendor name. +The actual format of the report looks more like what one would expect +in a paper accounting system's general journal than a general ledger +per se. A presentation of the data that is more like the paper general +ledger is found in the Chart of Accounts report. + + +SUBSUBSECTION: GL as access to almost everything else + +GL as access to almost everything else + +The GL reports can be used to do all manner of things. One can determine, +for example, which AP invoice or transaction was paid with a certain +check number or which invoice by a specific customer was paid by a specific +check number. + + +SECTION: Recurring Transactions + +Recurring Transactions + +Any transaction or invoice may be repeated a number of times in regular +intervals. To schedule any GL, AR, or AP transaction or invoice, click +the schedule button. + +In general the reference number should be left blank as this will +force Ledger-SMB to create a new invoice or transaction number for +each iteration. The rest of the options are self-explanatory. Note +that a blank number if iterations will result in no recurrences of +the transaction. + +To process the recurring transactions, click on the Recurring Transactions +option on the main menu select the ones you want to process and click +` +"Process Transactions.`\" + + +SECTION: Financial Statements and Reports + +Financial Statements and Reports + +Financial statements and reports are a very important part of any +accounting system. Accountants and business people rely on these reports +to determine the financial soundness of the business and its prospects +for the next accounting period. + + +SUBSECTION: Cash v. Accrual Basis + +Cash v. Accrual Basis + +Financial statements, such as the Income Statement and Balance Sheet +can be prepared either on a cash or accrual basis. In cash-basis accounting, +the income is deemed earned when the customer pays it, and the expenses +are deemed incurred when the business pays them. + +There are a number of problems with cash-basis accounting from a business +point of view. The most serious is that one can misrepresent the wellbeing +of a business by paying a large expense after a deadline. Thus cash-basis +accounting does not allow one to accurately pair the income with the +related expense as these are recorded at different times. If one cannot +accurately pair the income with the related expense, then financial +statements cannot be guaranteed to tell one much of anything about +the well-being of the business. + +In accrual basis accounting, income is considered earned when the +invoice is posted, and expenses are considered incurred at the time +when the goods or services are delivered to the business. This way, +one can pair the income made from the sale of a product with the expense +incurred in bringing that product to sale. This pairing allows for +greater confidence in business reporting. + + +SUBSECTION: Viewing the Chart of Accounts and Transactions + +Viewing the Chart of Accounts and Transactions + +The Reports-- Chart of Accounts will provide the chart +of accounts along with current totals in each account. + +If you click on an account number, you will get a screen that allows +you to filter out transactions in that account by various criteria. +One can also include AR/AP, and Subtotal in the report. + +The report format is similar to that of a paper-based general ledger. + + +SUBSECTION: Trial Balance + +Trial Balance + + +SUBSUBSECTION: The Paper-based function of a Trial Balance + +The Paper-based function of a Trial Balance + +In paper-based accounting systems, the accountant at the end of the +year would total up the debits and credits in every account and transfer +them onto another sheet called the trial balance. The accountant would +check to determine that the total debits and credits were equal and +would then transfer this information onto the financial statements. +It was called a trial balance because it was the main step at which +the error-detection capabilities of double-entry accounting systems +were used. + + +SUBSUBSECTION: Running the Trial Balance Report + +Running the Trial Balance Report + +This report is located under Reports -- Trial Balance. +One can filter out items by date, accounting period, or department. +One can run the report by accounts or using GIFI classifications to +group accounts together. + +From this report, you can click on the account number and see all +transactions on the trial balance as well as whether or not they have +been reconciled. + + +SUBSUBSECTION: What if the Trial Balance doesn't Balance? + +What if the Trial Balance doesn't Balance? + +If the trial balance does not balance, get technical support immediately. +This usually means that transactions were not entered properly. Some +may have been out of balance, or some may have gone into non-existent +accounts (believe it or not, Ledger-SMB does not check this latter +issue). + + +SUBSUBSECTION: Trial Balance as a Summary of Account Activity + +Trial Balance as a Summary of Account Activity + +The trial balance offers a glance at the total activity in every account. +It can provide a useful look at financial activity at a glance for +the entire business. + + +SUBSUBSECTION: Trial Balance as a Budget Planning Tool + +Trial Balance as a Budget Planning Tool + +By filtering out departments, one can determine what a department +earned and spent during a given financial interval. This can be used +in preparing budgets for the next accounting period. + + +SUBSECTION: Income Statement + +Income Statement + +The Income Statement is another tool that can be used to assist with +budgetary planning as well as provide information on the financial +health of a business. + +The report is run from Reports-- Income Statement. The +report preparation screen shows the following fields: + + [Department] allows you to run reports for individual departments. +This is useful for budgetary purposes. + [Project] allows you to run reports on individual projects. This +can show how profitable a given project was during a given time period. + [From] and To allow you to select arbitrary from and to dates. + [Period] allows you to specify a standard accounting period. + [Compare to] fields allow you to run a second report for comparison +purposes for a separate range of dates or accounting period. + [Decimalplaces] allows you to display numbers to a given precision. + [Method] allows you to select between accrual and cash basis reports. + [Include] in Report provides various options for reporting. + [Accounts] allows you to run GIFI reports instead of the standard +ones. +The report shows all income and expense accounts with activity during +the period when the report is run, the balances accrued during the +period, as well as the total income and expense at the bottom of each +section. The total expense is subtracted from the total income to +provide the net income during the period. If there is a loss, it appears +in parentheses. + + +SUBSUBSECTION: Uses of an Income Statement + +Uses of an Income Statement + +The income statement provides a basic snapshot of the overall ability +of the business to make money. It is one of the basic accounting statements +and is required, for example, on many SEC forms for publicly traded +firms. + +Additionally, businessmen use the income statement to look at overall +trends in the ability of the business to make money. One can compare +a given month, quarter, or year with a year prior to look for trends +so that one can make adjustments in order to maximize profit. + +Finally, these reports can be used to provide a look at each department's +performance and their ability to work within their budget. One can +compare a department or project's performance to a year prior and +look for patterns that can indicate problems or opportunities that +need to be addressed. + + +SUBSECTION: Balance Sheet + +Balance Sheet + +The balance sheet is the second major accounting statement supported +by Ledger-SMB. The balance sheet provides a snapshot of the current +financial health of the business by comparing assets, liabilities, +and equity. + +In essence the balance sheet is a statement of the current state of +owner equity. Traditionally, it does not track changes in owner equity +in the same way the Statement of Owner Equity does. + +The Balance Sheet report preparation screen is much simpler than the +Income Statement screen. Balance sheets don't apply to projects, but +they do apply to departments. Also, unlike an income statement, a +balance sheet is fixed for a specific date in time. Therefore one +does not need to select a period. + +The fields in creating a balance sheet are: + + [Department] allows you to run separate balance sheets for each +department. + [As] at specifies the date. If blank this will be the current date. + [Compare to] specifies the date to compare the balance sheet to. + [Decimalplaces] specifies the number of decimal places to use. + [Method] selects between cash and accrual basis. + [Include] in report allows you to select supplemental information +on the report. + [Accounts] allows you to select between standard and GIFI reports. +The balance sheet lists all asset, liability, and equity accounts +with a balance. Each category has a total listed, and the total of +the equity and liability accounts is also listed. + +The total assets should be equal to the sum of the totals of the liability +and equity accounts. + + +SUBSECTION: What if the Balance Sheet doesn't balance? + +What if the Balance Sheet doesn't balance? + +Get technical support immediately, This may indicate that out of balance +transactions were entered or that transactions did not post properly. + + +SUBSECTION: No Statement of Owner Equity? + +No Statement of Owner Equity? + +The Statement of Owner Equity is the one accounting statement that +Ledger-SMB does not support. However, it can be simulated by running +a balance sheet at the end of the time frame in question and comparing +it to the beginning. One can check this against an income statement +for the period in question to verify its accuracy. The statement of +owner equity is not as commonly used now as it once was. + + +SECTION: The Template System + +The Template System + +Ledger-SMB allows most documents to be generated according to a template +system. This allows financial statements, invoices, orders, and the +like to be customized to meet the needs of most businesses. Company +logos can be inserted, the format can be radically altered, one can +print letters to be included with checks to vendors instead of the +checks themselves, and the like. In the end, there is very little +that cannot be accomplished regarding modification of these documents +with the template system. + +One can define different templates for different languages, so that +a customer in Spain gets a different invoice than a customer in Canada. + + +SUBSECTION: Text Templates + +Text Templates + +The only template that uses a text-only format is the POS receipt. +This example provides the simplest way to understand the template +system. + +The first two lines are: + + + + + + + +The first line tells Ledger-SMB to print the company name as passed +to it via a variable, centered, with a page width of 40 characters. +The second line does the same thing with the address. + +These variables are usually passed to the invoice using form fields +(hidden or otherwise) in the submitting web page. The printing script, +however, can disable some of these fields or add others via database +lookups and the like. + +In all types of templates, variable substitution occurs between + +and + +width but these are really only useful in text templates. + + +SUBSECTION: HTML Templates + +HTML Templates + +The following templates exist in HTML format: + + Income Statement + Balance Sheet + Invoice (AR) + AR Transaction + AP Transaction + Packing List + Pick List + Sales Order + Work Order + Purchase Order + Bin List + Statement + Quotation + RFQ + Time Card +These templates can be edited by an HTML editor. However, it is generally +recommended that one back up templates first. The reason is that some +HTML editors will fully re-parse the HTML and save it back without +what they see as invalid tags. Most editors, however, will save the +variable substitution tags because similar tags are also used by Microsoft's +active server pages. + +Finally, some editors are known to mangle formatting, so many problems +can be avoided by ensuring that one has a backup of the templates, +especially if they have already been customized. + + +SUBSECTION: LaTeX Templates + + + Templates + +The following templates, by default, are available in + : + + Invoice + AR Transaction + AP Transaction + Packing List + Pick List + Sales Order + Work Order + Purchase Order + Bin List + Statement + Check + Receipt + Quotation + RFQ + Time Card + + templates allow one to generate PDF and postscript documents +and print directly to a postscript-enabled printer or print software +(like CUPS). + + + templates can be edited using a standard text editor (like +vim or emacs), or using a synchronous + implementation such +as . + + +SUBSUBSECTION: What is LaTeX ? + +What is LaTeX? + + +LaTeX (pronounced LAY-tech) is an extension on the TeX typesetting +system. It largely consists of a set of macros that allow one to focus +on the structure of the document while letting the + engine +do the heavy lifting in terms of determining the optimal formatting +for the page. + is used in a large number of academic journals +(including those of the American Mathematics Association). It is available +at http://www.tug.org and is included in most Linux distributions. + +Like HTML, + uses plain text documents to store the formatting +information and then when the document is rendered, attempts to fit +it onto a page. +supports the concept of stylesheets, allowing one to separate content +from format, and this feature is used in many higher-end applications, +like journal publication. + +Unlike HTML, + is a complete though simple programming language +that allows one to redefine internals of the system for formatting +purposes. + +This document is written in . + + +SUBSUBSECTION: Using LyX to Edit LaTeX Templates + +Using to Edit + Templates + + is a synchronous + editor that runs on Windows, UNIX/Linux, +and Mac OS X. It requires an installed -2e implementation +and can be obtained at http://www.lyx.org. Like the most common + + implementations, it is open source and is included with most +Linux distributions. + +SUBSECTION: Customizing Logos + +Customizing Logos + + + requires different formats of logos depending on whether +the document is going to be generated as a PDF or as postscript. Postscript +requires an embedded postscript graphic, while PDF requires any type +of graphic other than embedded postscript. Usually one uses a PNG's +for PDF's, though GIF's could be used as well. The logo for a + document +resides in the users directory. + +HTML documents can have logos in many different formats. PNG's are +generally preferred for printing reasons. The image can be stored +anywhere and merely referenced in the HTML. + +Note: Always test the an invoice with images to ensure that +the rest of the page format is not thrown off by it. + + +SUBSECTION: How are They Stored in the Filesystem? + +How are They Stored in the Filesystem? + +The template directory (` +"templates`\" in the root +Ledger-SMB install directory) contains all the root templates used +by Ledger-SMB. These follow a naming convention of COAType-templatename.ext +where COAType is the type of dataset that was created when the user +was created, templatename is the name of the template, and ext is +either txt, html, or tex (for text, html, and + respectively). + +Inside this directory are one or more subdirectories where the relevant +templates have been copied as default language templates for the user. +Many users can use the same user directory (which bears the name of +the Ledger-SMB username). Within this directory are more subdirectories +for translated templates, one for each language created. + + +SUBSECTION: Upgrade Issues + +Upgrade Issues + +When Ledger-SMB is upgraded, the templates are not replaced. This +is designed to prevent the upgrade script from overwriting changes +made during the course of customizing the templates. + +Occasionally, however, the data model changes in a way which can cause +the templates to stop printing certain information. When information +that was showing up before an upgrade stops showing up, one can either +upgrade the templates by copying the source template over the existing +one, or one can edit the template to make the change. + +SECTION: An Introduction to the CLI + +An Introduction to the CLI + +SUBSECTION: Conventions + +Conventions + +The command-line API will be referred to as the API. + +SUBSECTION: Preliminaries + +Preliminaries + +Logging into Ledger-SMB (1.2+) updates a row in the users table +containing your account configuration defaults and other information. +The implication for API users of LSMB is that you must login as part +of running API scripts. For security purposes, it is recommended that +scripts prompt for a password rather than storing it. + +All scripts included in the documentation can also be found in the doc/samples +directory. + +Consider a simple example: + + cd /usr/local/ledger-smb +./ct.pl "login=name +&path=bin\&password=xxxxx\&action=search\&db=customer" + +The cd command moves your terminal session's current working directory into +the main Ledger-SMB directory. Then the Ledger-SMB perl script ct.pl is called +with one long line as an argument. The argument is really several variable=value pairs +separated by ampersands ( +&). The value for the login variable is the username +that Ledger-SMB is to use, and the value for the password variable is the plaintext password. + +To build our examples we will use a username of "clarkkent" who has a password +of "lOis,lAn3". + + cd /usr/local/ledger-smb +./ct.pl "login=clarkkent +&path=bin\&password=lOis,lAn3\&action=search\&db=customer" + +If we execute these commands we will get the html for the search form for +the customer database. This result isn't useful in itself, but it shows we +are on the right track. + + +SUBSECTION: First Script: lsmb01-cli-example.sh + +First Script: lsmb01-cli-example.sh + +With a working example, we can start to build reproducible routines that we can grow +to do some useful work. + +This is a bash script which: + + 1. sets NOW to the current working directory + 2. prompts for and reads your Ledger-SMB login + 3. prompts for and reads (non-echoing) your Ledger-SMB password + 4. changes directory to /usr/local/ledger-smb + 5. constructs login and logout commands and a transaction command + 6. logins into ledger-smb (in a real program, output would be checked for + success or failure) + 7. executes the transaction + 8. logs out of ledger-smb (although this is not necessary) + 9. returns to the original working directory +10. exits + +Running lsmb01-cli-example.sh produces: + + +$ lsmb01-cli-example.sh + +Ledger-SMB login: clarkkent + +Ledger-SMB password: + +<body> + +<form method=post action=ct.pl> + +<input type=hidden name=db value=customer> + +<table width=100 + <tr> + <th class=listtop>Search</th> +. +. +. + +A script like this would work well for simple batch transactions, but +bash is not a very friendly language for application programming. + + +A nicer solution would be to use a language such as perl to drive the +command line API. + +SUBSUBSECTION: Script 1 (Bash) + +Script 1 (Bash) +#!/bin/bash +####################################################################### +# +# lsmb01-cli-example.sh +# Copyright (C) 2006. Louis B. Moore +# +# $Id: $ +# +# This program is free software; you can redistribute it and/or modify +# it under the terms of the GNU General Public License as published by +# the Free Software Foundation; either version 2 of the License, or +# (at your option) any later version. +# +# This program is distributed in the hope that it will be useful, +# but WITHOUT ANY WARRANTY; without even the implied warranty of +# MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE. See the +# GNU General Public License for more details. +# You should have received a copy of the GNU General Public License +# along with this program; if not, write to the Free Software +# Foundation, Inc., 675 Mass Ave, Cambridge, MA 02139, USA. +# +####################################################################### + +NOW=`pwd` + +echo -n "Ledger-SMB login: " +read LSLOGIN +echo + +echo -n "Ledger-SMB password: " +stty -echo +read LSPWD +stty echo +echo + +ARG="login=$LSLOGIN&password=$LSPWD&path=bin&action=search&db=customer" + +LGIN="login=$LSLOGIN&password=$LSPWD&path=bin&action=login" +LGOT="login=$LSLOGIN&password=$LSPWD&path=bin&action=logout" + +cd /usr/local/ledger-smb + +./login.pl $LGIN 2>&1 > /dev/null +./ct.pl $ARG +./login.pl $LGOT 2>&1 > /dev/null + +cd $NOW + +exit 0 + + +SUBSECTION: Second Script: lsmb02-cli-example.pl + +Second Script: lsmb02-cli-example.pl + +Our second script is written in perl and logs you in but it still uses the API +in its simplest form, that is, it builds commands and then executes them. This +type of script can be used for more complex solutions than the simple bash script +above, though it is still fairly limited. If your needs require, rather than have +the script build and then execute the commands it could be written to generate a +shell script which is executed by hand. + +This script begins by prompting for your Ledger-SMB login and password. Using +the supplied values a login command is constructed and passed into the runLScmd +subroutine. runLScmd changes directory to /usr/local/ledger-smb/ for the length +of the subroutine. It formats the command and executes it and returns both the +output and error information to the caller in a scalar. + +The script checks to see if there was an error in the login, exiting if there was. + +Next, the script reads some records which are stored in the program following the + token. It takes each record in turn, formats it then feeds each transaction +through runLScmd and looks at the results for a string that signals success. + +Once all the transactions are processed, runLScmd is called one last time to +logout and the script exits. + +SUBSUBSECTION: Script 2 (Perl) + +Script 2 (Perl) +#!/usr/bin/perl -w +# +# File: lsmb02-cli-example.pl +# Environment: Ledger-SMB 1.2.0+ +# Author: Louis B. Moore +# +# Copyright (C) 2006 Louis B. Moore +# +# This program is free software; you can redistribute it and/or +# modify it under the terms of the GNU General Public License +# as published by the Free Software Foundation; either version 2 +# of the License, or (at your option) any later version. +# +# This program is distributed in the hope that it will be useful, +# but WITHOUT ANY WARRANTY; without even the implied warranty of +# MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE. See the +# GNU General Public License for more details. +# +# You should have received a copy of the GNU General Public License +# along with this program; if not, write to the Free Software +# Foundation, Inc., 59 Temple Place - Suite 330, Boston, MA 02111-1307, USA. +# +# Revision: +# $Id$ +# +# + +use File::chdir; +use HTML::Entities; + + +print "-SMB login: "; +my $login = <STDIN>; +chomp($login); + + +print "-SMB password: "; +system("stty -echo"); +my $pwd = <STDIN>; +system("stty echo"); +chomp($pwd); +print ""; + +$cmd = "login=" . $login . '&password=' . $pwd . '&path=bin&action=login'; + +$signin = runLScmd("./login.pl",$cmd); + +if ( $signin =~ m/Error:/ ) + + print " error"; + exit; + + + + +while (<main::DATA>) + + chomp; + @rec = split(/ +|/); + + $arg = 'path=bin/mozilla&login=' . $login . '&password=' . $pwd . + '&action=' . escape(substr($rec[0],0,35)) . + '&db=' . $rec[1] . + '&name=' . escape(substr($rec[2],0,35)) . + '&vendornumber=' . $rec[3] . + '&address1=' . escape(substr($rec[4],0,35)) . + '&address2=' . escape(substr($rec[5],0,35)) . + '&city=' . escape(substr($rec[6],0,35)) . + '&state=' . escape(substr($rec[7],0,35)) . + '&zipcode=' . escape(substr($rec[8],0,35)) . + '&country=' . escape(substr($rec[9],0,35)) . + '&phone=' . escape(substr($rec[10],0,20)) . + '&tax_2150=1' . + '&taxaccounts=2150' . + '&taxincluded=0' . + '&terms=0'; + + $rc=runLScmd("./ct.pl",$arg); + + if ($rc =~ m/Vendor saved!/) + + print "$rec[2] SAVED"; + + else + + print "$rec[2] ERROR"; + + + + + + +$cmd = "login=" . $login . '&password=' . $pwd . '&path=bin&action=logout'; + +$signin = runLScmd("./login.pl",$cmd); + +if ( $signin =~ m/Error:/ ) + + print " error"; + + + +exit; + + +#******************************************************* +# Subroutines +#******************************************************* + + +sub runLScmd + + my $cmd = shift; + my $args = shift; + my $i = 0; + my $results; + + local $CWD = "/usr/local/ledger-smb/"; + + $cmd = $cmd . " +"" . $args . "\""; + + $results = `$cmd 2>&1`; + + return $results; + + + +sub escape + + my $str = shift; + + if ($str) + + decode_entities($str); + $str =~ s/([^a-zA-Z0-9_.-])/sprintf(" + + + return $str; + + + + +#******************************************************* +# Record Format +#******************************************************* +# +# action | db | name | vendornumber | address1 | address2 | city | state | zipcode | country | phone +# + +__END__ +save|vendor|Parts are Us|1377|238 Riverview|Suite 11|Cheese Head|WI|56743|USA|555-123-3322| +save|vendor|Widget Heaven|1378|41 S. Riparian Way||Show Me|MO|39793|USA|555-231-3309| +save|vendor|Consolidated Spackle|1379|1010 Binary Lane|Dept 1101|Beverly Hills|CA|90210|USA|555-330-7639 x772| + + + + + + + +PART: Technical Overview + +Technical Overview + + +SECTION: Basic Architecture + +Basic Architecture + +Ledger-SMB is a web-based Perl program that interfaces with PostgreSQL +using the relevant Perl modules. The code is well partitioned, and +the main operation modules are written in an object oriented way. + + +SUBSECTION: The Software Stack + +The Software Stack + + + fig-sl-stack sl-stack.tex + + +CAPTION: The Ledger-SMB software stack in a Typical Implementation + +The Ledger-SMB software stack in a Typical Implementation + + +Ledger-SMB runs in a Perl interpreter. I do not currently know if +it is possible to run it with Perl2C or other language converters +to run in other environments. However, except for high-capacity environments, +Perl is a good language choice for this sort of program. + +Ledger-SMB used to support DB2 and Oracle as well as PostgreSQL. However, +currently some of the functionality is implemented using PostgreSQL +user-defined functions. These would need to be ported to other database +managers in order to make the software work on these. It should not +be too hard, but the fact that it has not been done yet may mean that +there is no real demand for running the software under other RDBMS's. + +One can substitute other web servers for Apache. Normally Ledger-SMB +is run as a CGI program but it may be possible to run it in the web +server process (note that this may not be entirely thread-safe). + +The operating system can be any that supports a web server and Perl +(since PostgreSQL need not run on the same system). However, there +are a few issues running Ledger-SMB on Windows (most notably in trying +to get Postscript documents to print properly). + +On the client side, any web-browser will work. Currently, the layout +is different for Lynx (which doesn't support frames), and the layout +is not really useful under eLinks (the replacement for Lynx which +does support frames). Some functionality requires Javascript to work +properly, though the application is usable without these features. + + +SUBSECTION: Capacity Planning + +Capacity Planning + +Some companies may ask how scalable Ledger-SMB is. In general, it +is assumed that few companies are going to have a need for a high-concurrency +accounting system. However, with all the features available in Ledger-SMB, +the staff that may have access to some of the application may be senior +enough to make the question worthwhile. + +This question also becomes more important when companies might look +at integrating Ledger-SMB with a CRM solution, online store, or other +environment. This section looks at a number of the known issues and +their solutions. + + +SUBSUBSECTION: Scalability Strategies + +Scalability Strategies + +Ledger-SMB is a fairly standard web-based application. However, +sometimes the database schema changes during upgrades. In these cases, +it becomes impossible to use different versions of the software against +the same database version safely. Ledger-SMB checks the version of +the database and if the version is higher than the version of the +software that is running, will refuse to run. + +Therefore although one strategy might be to run several front-end +web servers with Ledger-SMB, in reality this can be a bit of a problem. +One solution is to take half of the front-end servers off-line while +doing the initial upgrade, and then take the other offline to upgrade +when these are brought back online. + +The database manager is less scalable in the sense that one cannot +just add more database servers and expect to carry on as normal. However, +aside from the known issues listed below, there are few performance +issues with it. If complex reports are necessary, these can be moved +to a replica database (perhaps using Slony-I). + +If this solution is insufficient for database scalability, one might +be able to move staff who do not need real-time access to new entries +onto a PG-Pool/Slony-I cluster where new transactions are entered +on the master and other data is looked up on the replica. In certain +circumstances, one can also offload a number of other queries from +the master database in order to minimize the load. Ledger-SMB has +very few issues in the scalability of the application. + + +SUBSUBSECTION: Database Maintenance + +Database Maintenance + +PostgreSQL uses a technique called Multi-version Concurrency Control +(MVCC) to provide a snapshot of the database at the beginning of a +statement or transaction (depending on the transaction isolation level). +When a row is updated, PostgreSQL leaves the old row in the database, +and inserts a new version of that row into the table. Over time, unless +those old rows are removed, performance can degrade as PostgreSQL +has to search through all the old versions of the row in order to +determine which one ought to be the current one. + +Due to the way the SQL statements are executed in Ledger-SMB, most +inserts will also create a dead row. + +A second problem occurs in that each transaction is given a transaction +id. These id's are numbered using 32-bit integers. If the transaction +id wraps around (prior to 8.1), data from transactions that appear +(due to the wraparound) to be in the future suddenly becomes inaccessible. +This problem was corrected in PostgreSQL 8.1, where the database will +refuse to accept new transactions if the transaction ID gets too close +to a wraparound. So while the problem is not as serious in 8.1, the +application merely becomes inaccessible rather than displaying apparent +data loss. Wraparound would occur after about a billion transactions +between all databases running on that instance of PostgreSQL. + +Prior to 8.1, the main way to prevent both these problems was to run +a periodic vacuumdb command from cron (UNIX/Linux) or the task scheduler +(Windows). In 8.1 or later, autovacuum capabilities are part of the +back-end and can be configured with the database manager. See the +PostgreSQL documentation for treatment of these subjects. + +In general, if performance appears to be slowly degrading, one should +try to run vacuumdb -z from the shell in order to attempt to reclaim +space and provide the planner with accurate information about the +size and composition of the tables. If this fails, then one can go +to other methods of determining the bottleneck and what to do about +it. + + +SUBSUBSECTION: Known issues + +Known issues + +The PostgreSQL planner assumes a minimum page size of ten pages for +a physically empty table. The reasoning behind this choice is that +a table could grow rapidly and one could end up with bad database +performance if the planner assumes a very small table. + +However, if you end up with joins between a very large table with +millions of rows and a physically empty table, one can end up with +a very bad query plan. In this case, the planner will choose a nested +loop join and run through this loop for every row in the large table. +As a result, performance will suddenly drop once the large table becomes +too large to effectively do index scans of the join criteria on both +tables. This problem most often occurs when people have no warehouses, +departments, or projects defined and are running systems with a large +number of transactions (such as a point of sale environment). + +Last time I saw this problem, the server would wait for thirty seconds +to display a new point of sale screen while the server CPU activity +would spike to 100 + + +One solution is to define one warehouse, department, and project, +and then run vacuumdb -z from the shell to force the planner to acknowledge +these tables as single-row tables. The other option is to go into +the source code and edit the database queries to omit unused tables. + + +SECTION: Customization Possibilities + +Customization Possibilities + +Ledger-SMB is designed to be customized relatively easily and rapidly. +In general, the source code is well written and compartmentalized. +This section covers the basic possibilities involving customization. + + +SUBSECTION: Brief Guide to the Source Code + +Brief Guide to the Source Code + +Ledger-SMB is an application with over 34000 lines of code. While +it is not possible to cover the entire application here, a brief overview +of the source code is in order. + +In the root of the install directory, one will find a setup.pl program, +a number of other .pl programs, and a number of directories. The setup.pl +program is used to update or install Ledger-SMB. The other .pl programs +provide a basic set of services for the framework (including authentication) +and then pass the work on to the data entry screen file in the bin +directory. + +The bin directory contains another directory for each terminal type. +The main two offered are lynx and mozilla. Lynx would be used for +web browsers that do not support frames and is ideal for a text-mode +VGA terminal. Mozilla is the terminal type used for most other web +browsers. The perl files within these directories provides the user +interface of the software. + +The css directory in the root install directory contains CSS documents +to provide various stylesheets one can select for changing various +aspects of the look and feel of the application. + +The locale directory contains translation files that Ledger-SMB uses +to translate between different languages. One could add translations +to these files if necessary. + +The LSMB directory is where the Perl modules reside that provide the +core business logic in Ledger-SMB. These modules provide functionality +such as form handling, email capabilities, and access to the database +through its at least partially object oriented API. + +Finally, the sql directory provides the database schemas and upgrade +scripts. + + +SUBSECTION: Data Entry Screens + +Data Entry Screens + +One can customize the data entry screens to optimize work flow, display +additional information, etc. + + +SUBSUBSECTION: Examples + +Examples + +We set up hot keys for payment lines, automatically focused the keyboard +on the last partnumber field, removed separate print and post buttons +to ensure that invoices were always printed and posted together, and +removed the ability to print to the screen, and even the ability to +scan items in when an invoice was received (using a portable data +terminal) and import this data into Ledger-SMB. Finally we added the +ability to reconcile the till online in a paperless manner. + +For another customer, we added the ability to print AR invoices in +plain text format and added templates (based on the POS sales template) +to do this. + + +SUBSECTION: Extensions + +Extensions + +One can add functionality to the Perl modules in the LSMB directory +and often add missing functions easily. + + +SUBSUBSECTION: Examples + +Examples + +For one customer, we added a module to take data from a portable data +terminal collected when inventory items were taken and use that to +add shrinkage and loss adjustments. We also extended the parts model +to add a check id flag (for alcohol sales) and added this flag to +the user interface. + +For another customer, we added a complex invoice/packing slip tracking +system that allowed one to track all the printed documents associated +with an order or invoice. + + +SUBSECTION: Templates + +Templates + +As noted before templates can be modified or extended, though sometimes +this involves extending the user interface scripts. Most templates +are easy enough to modify. + + +SUBSUBSECTION: Examples + +Examples + +For one customer we added text-only invoices for AR and AP transactions/Invoices +and an ability to use Javascript in them to automatically print them +on load. + + +SUBSECTION: Reports + +Reports + +The fact that all the data is available within the database manager +is a huge advantage of Ledger-SMB over Quickbooks and the like. The +rapid development of reports allows for one to easily develop reports +of any sort within Ledger-SMB. + + +SUBSUBSECTION: Examples + +Examples + +For one customer, we developed a report of parts sold and received +during arbitrary time frames. The report allows one to go back and +look up the invoices involved. + + +SECTION: Integration Possibilities + +Integration Possibilities + +An open database system and programming API allows for many types +of integration. There are some challenges, but in the end, one can +integrate a large number of tools. + + +SUBSECTION: Reporting Tools + +Reporting Tools + +Any reporting tool which can access the PostgreSQL database can be +used with Ledger-SMB for custom reporting. These can include programs +like Microsoft Access and Excel (using the ODBC drivers), PgAccess +(A PostgreSQL front-end written in TCL/Tk with a similar feel to Access), +Rekall, Crystal Reports, OpenOffice and more. + + +SUBSUBSECTION: Examples + +Examples + +We have created spreadsheets of the summaries of activity by day and +used the ODBC driver to import these into Excel. Excel can also read +HTML tables, so one can use PostgreSQL to create an HTML table of +the result and save it with a .xls extension so that Windows opens +it with Excel. These could then be served via the same web server +that serves Ledger-SMB. + + +SUBSECTION: Line of Business Tools on PostgreSQL + +Line of Business Tools on PostgreSQL + +Various line of business tools have been written using PostgreSQL +in large part due to the fact that it is far more mature than MySQL +in areas relating to data integrity enforcement, transactional processing, +and the like. These tools can be integrated with Ledger-SMB in various +ways. One could integrate this program with the HERMES CRM framework, +for example. + + +SUBSUBSECTION: Known Issues + +Known Issues + +Ledger-SMB uses a single 'id' sequence across many tables. At the +same time it is expected that these tables do not have identical id +values in their records as they are used as a sort of pseudo-foreign +key by the acc table which stores the financial transaction +information. + +If the integration solution does not keep this in mind, it is possible +to create a situation where the account transactions are ambiguously +associated with a number of different types of financial transactions. +This would lead to a large number of problems. + + +SUBSUBSECTION: Strategies + +Strategies + +In general, it is advisable to run all such programs that benefit +from integration in the same database but under different schemas. +This allows PostgreSQL to become the main method of synchronizing +the data in real time. However, sometimes this can require dumping +the database, recreating the tables etc. in a different schema and +importing the data back into Ledger-SMB. + +One possibility for this sort of integration is to use database triggers +to replicate the data between the applications in real-time. This +can avoid the main issue of duplicate id's. One issue that can occur +however relates to updates. If one updates a customer record in HERMES, +for example, how do we know which record to update in Ledger-SMB? +There are solutions to this problem but they do require some forethought. + +A second possibility is to use views to allow one application to present +the data from the other as its own. This can be cleaner regarding +update issues, but it can also pose issues regarding duplicate id +fields. + + +SUBSUBSECTION: Examples + +Examples + +Others have integrated L'ane POS and Ledger-SMB in order to make it +work better with touch screen devices. Still others have successfully +integrated Ledger-SMB and Interchange. In both cases, I believe that +triggers were used to perform the actual integration. + + +SUBSECTION: Line of Business Tools on other RDBMS's + +Line of Business Tools on other RDBMS's + +Often there are requests to integrate Ledger-SMB with applications +like SugarCRM, OSCommerce, and other applications running on MySQL +or other database managers. This is a far more complex field and it +requires a great deal more effort than integrating applications within +the same database. + + +SUBSUBSECTION: Strategies + +Strategies + +Real-time integration is not always possible. MySQL does +not support the SQL extension SQL/MED (Management of External Data) that +supports non-MySQL data sources so it is not possible to replicate the +data in real-time. Therefore +one generally resorts to integrating the system using time-based updates. +Replication may be somewhat error-prone unless the database manager +supports triggers (first added to MySQL in 5.0) or other mechanisms +to ensure that all changed records can be detected and replicated. +In general, it is usually advisable to add two fields to the record-- +one that shows the insert time and one that shows the last update. + +Additionally, I would suggest adding additional information to the +Ledger-SMB tables so that you can track the source record from the +other application in the case of an update. + +In general, one must write replication scripts that dump the information +from one and add it to the other. This must go both ways. + + +SUBSUBSECTION: Integration Products and Open Source Projects + +Integration Products and Open Source Projects + +While many people write Perl scripts to accomplish the replication, +an open source project exists called DBI-Link. This package requires +PL/Perl to be installed in PostgreSQL, and it allows PostgreSQL to +present any data accessible via Perl's DBI framework as PostgreSQL +tables. DBI-Link can be used to allow PostgreSQL to pull the data +from MySQL or other database managers. + +DBI-Link can simplify the replication process by reducing the operation +to a set of SQL queries. + + +SECTION: Customization Guide + +Customization Guide + +This section is meant to provide a programmer with an understanding +of the technologies enough information to get up to speed quickly +and minimize the time spent familiarizing themselves with the software. +Topics in this section are listed in order of complexity. As it appeals +to a narrower audience than previous discussions of this topic, it +is listed separately. + + +SUBSECTION: General Information + +General Information + +The main framework scripts (the ar.pl, ap.pl, etc. scripts found in +the root of the installation directory) handle such basic features +as instantiating the form object, ensuring that the user is logged +in, and the like. They then pass the execution off to the user interface +script (usually in the bin/mozilla directory). + +Ledger-SMB in many ways may look sort of object oriented in its design, +but in reality, it is far more data-driven than object oriented. The +Form object is used largely as a global symbol table and also as a +collection of fundamental routines for things like database access. +It also breaks down the query string into sets of variables which +are stored in its attribute hash table. + +In essence one can and often will store all sorts of data structures +in the primary Form object. These can include almost anything. It +is not uncommon to see lists of hashes stored as attributes to a Form +object. + + +SUBSECTION: Customizing Templates + +Customizing Templates + +Templates are used to generate printed checks, invoices, receipts, +and more in Ledger-SMB. Often the format of these items does not fit +a specific set of requirements and needs to be changed. This document +will not include or HTML instruction, but will include a +general introduction to editing templates. Also, this is not intended +to function as a complete reference. + +Template instructions are contained in tags ?lsmb and ?. +The actual parsing is done by the parse function in LSMB/Form.pm. + + +SUBSUBSECTION: Page Breaks in \LaTeX{} + +Page Breaks in + +The first tag one will see with + templates is ?lsmb pagebreak +num1 num2 num3 ? + + num1 represents characters per line + num2 represents lines on first page + num3 represents lines on second page. +The pagebreak block is terminated by ?lsmb end pagebreak ?. +Any text within the pagebreak block is ignored by the template. + + +SUBSUBSECTION: Conditionals + +Conditionals + + ?lsmb if not varname ? tells the parser to +include the next block only if varname was posted by the submitting +form (or set via the form hash elsewhere in the scripts). The block +ends with ?lsmb end varname ? + ?lsmb if varname ? tells the parser to include the +block if varname was posted in the submitting form (or set via +the form hash elsewhere in the scripts). The block ends with ?lsmb end +varname ? + Lines conditionals are otherwise ignored by the parser. + Conditionals cannot be nested, but IF's can be nested inside loops. + +SUBSUBSECTION: Loops + +Loops + +?lsmb foreach varname ? is used to iterate through +a list of vars set by the user interface system (usually one of the +files under bin/mozilla (or otherwise). The block is repeated for +each varname in a list. Block ends with ?lsmb end varname ? + + +SUBSUBSECTION: File Inclusion + +File Inclusion + + Files may be included with the syntax ?lsmb include template +? +where templatename is the name of the template within the current +template directory (usually templates/ +$username/). Note that for \ +templates, the input or include functionalities might be better suited for many +many things. + Cannot be used with conditionals + Filenames cannot use slashes (/) or .. due to directory transversal +considerations. + Files can force other files to be included, but the same file cannot +be included more than once. + +SUBSUBSECTION: Cross-referencing and multiple passes of \LaTeX{} + +Cross-referencing and multiple passes of + +In + cross-references require two passes with latex to resolve. +This is because the type is set page by page and the program really +doesn't know on which page a given reference will fall. This becomes +an even larger issue where floats are concerned as they can move between +pages for formatting reasons. + +In rare cases, cross-references may point at incorrect pages even +with two passes (if the inclusion of the cross-reference data moves +the object to another page). In this case you will need to use three +passes of + in order to have accurate references. + +Ledger-SMB as of the time of this writing (2.6.8) only makes one pass +at the + file. To force it to make more than one pass, open +Form.pm with your favorite text editor. Look for the line: + +system(` +"latex --interaction=nonstopmode \$self-$$ +tmpfile$$ + + \$ self-$$ tmpfile$$ +.err` +"); + +Duplicate this line for two passes, or add two copies if you need +three passes. + + +SUBSUBSECTION: Variable Substitution + +Variable Substitution + +The following format is used for variable substitution: + + ?lsmb varname options ? Options are one or more +(whitespace separated) of: + + align=left/right/center + width=chars where chars is the width in characters before wrapping + offset=chars where chars is the number of spaces to (depending on +alignment). + +SUBSECTION: Customizing Forms + +Customizing Forms + +Data entry forms and other user interface pieces are in the bin directory. +In Ledger-SMB 1.0.0 and later, symlinks are not generally used. + +Each module is identified with a two letter combination: ar, ap, cp, +etc. These combinations are generally explained in the comment headers +on each file. + +Execution in these files begins with the function designated by the +form->$$action$$ variable. This variable is usually +derived from configuration parameters in the menu.ini or the name +of the button that was clicked on to submit the previous page. Due +to localization requirements, the following process is used to determine +the appropriate action taken: + +The +$locale- getsub routine is called. This routine +checks the locale package to determine if the value needs to be translated +back into an appropriate LSMB function. If not, the variable is lower-cased, +and all spaces are converted into underscores. + +In general there is no substitute for reading the code to understand +how this can be customized and how one might go about doing this. + + +SUBSECTION: Customizing Modules + +Customizing Modules + +The Perl Modules (.pm files) in the LedgerSMB directory contain the +main business logic of the application including all database access. +Most of the modules are relatively easy to follow, but the code quality +leaves something to be desired. The API calls themselves are +likely to be replaced in the future, so work on documenting API calls is +now focused solely on those calls that are considered to be stable. +At the moment, the best place to request information on the API's is on +the Developmers' Email List (ledger-smb-devel@lists.sourceforge.net). + +Many of these modules have a fair bit of dormant code in them which +was written for forthcoming features, such as payroll and bills of +materials. + +One can add a new module through the normal means and connect it to +other existing modules. + + +SUBSUBSECTION: Database Access + +Database Access + +The +$form object provides two methods for accessing the database. +The +$form- dbconnect(\%myconfig) method commits each +individual statement as its own transaction. The +$form- +dbconnect( + +these functions are thin wrappers around the standard Perl DBI operations. + + +SUBSECTION: CLI Examples + +CLI Examples +Louis Moore contributed some SQL-Ledger CLI examples that still work for +LedgerSMB. You can find his page at http://www.sql-ledger.org/cgi-bin/nav.pl?page=contrib/moore.html&title=Louis + + + + + +PART: Appendix + +Appendix + + + + + + +SECTION: Where to Go for More Information + +Where to Go for More Information + +There are a couple of relevant sources of information on Ledger-SMB +in particular. + +The most important resources are the LedgerSMB web site +(http://www.ledgersmb.org) and the email lists found at our Sourceforge +site. + +In addition, it is generally recommended that the main bookkeeper +of a company using Ledger-SMB work through at least one accounting +textbook. Which textbook is not as important as the fact that a textbook +is used. + + +SECTION: Quick Tips + +Quick Tips + + +SUBSECTION: Understanding Shipping Addresses and Carriers + +Understanding Shipping Addresses and Carriers + +Each customer can have a default shipping address. This address is +displayed prominantly in the add new customer screen. To change the +shipping address for a single order, one can use the ship to button +at the bottom of the quote, order, or invoice screen. + +The carrier can be noted in the Ship Via field. However, this is a +freeform field and is largely used as commentary (or instructions +for the shipping crew). + + +SUBSECTION: Handling bad debts + +Handling bad debts + +In the event that a customer's check bounces or a collection requirement +is made, one can flag the customer's account by setting the credit +limit to a negative number. + +If a debt needs to be written off, one can either use the allowance +method (by writing it against the contra asset account of ` +"Allowance +for Bad Debts` +" or using the direct writeoff method where +it is posted as an expense. + + +SECTION: Step by Steps for Vertical Markets + +Step by Steps for Vertical Markets + + +SUBSECTION: Common Installation Errors + +Common Installation Errors + + Ledger-SMB is generally best installed in its own directory outside +of the wwwroot directory. While it is possible to install it inside +the wwwroot directory, the instructions and the faq don't cover the +common problems here. + When the chart of accounts (COA) is altered such that it is no longer +set up with appropriate items, you can make it impossible to define +goods and services properly. In general, until you are familiar with +the software, it is best to rename and add accounts rather than deleting +them. + +SUBSECTION: Retail With Light Manufacturing + +Retail With Light Manufacturing + +For purposes of this example we will use a business that assembles +computers and sells them on a retail store. + + Install Ledger-SMB. + Set preferences, and customize chart of accounts. + + Before customizing the COA it is suggested that you consult an accountant. + Define Goods, Labor, and Services as raw parts ordered from the vendors. + + These are located under the goods and services menu node. + Define assemblies. + + These are also located under goods and services. + Component goods and services must be defined prior to creating assembly. + Enter an AP Invoice to populate inventory with proper raw materials. + + One must generally add a generic vendor first. The vendor is added +under AP- Vendors- Add Vendor. + To pay an AP invoice like a check, go to cash-$>$payment. Fill out +approrpiate fields and click print. + + Note that one should select an invoice and enter in the payment amount +in the appropriate line of the invoice list. If you add amounts to +the master amount list, you will find that they are added to the amount +paid on the invoice as a prepayment. + The source field is the check number. + Stock assemblies + One can use AR Invoices or the POS interface to sell goods and services. + + Sales Invoice + + Can be generated from orders or quotations + Cannot include labor/overhead except as part of an assembly + One can make the mistake of printing the invoice and forgetting to +post it. In this event, the invoice does not officially exist in the +accounting system. + For new customers, you must add the customer first (under AR- +Customers- Add Customer. + POS Interface + + Cannot include labor/overhead except as part of an assembly + Printing without posting is often even easier in the POS because of +the rapid workflow. Yet it is just as severe a problem. + Ecommerce and Mail Order Operations + + See the shipping workflow documentation above. + Customers are set up by going to AR- Customers- +Add Customer (or the equivalent localized translation). The appropriate +fields are filled out and the buttons are used at the bottom to save +the record and optionally use it to create an invoice, etc. + + Saving a customer returns to the customer screen. After the appropriate +invoice, transaction, etc. is entered and posted, Ledger-SMB will +return to the add customer screen. + One can use the requirements report to help determine what parts need +to be ordered though one cannot generate PO's directly from this report. +Note, the needs of Ledger-SMB are mostly useful for light manufacturing +operations (assembling computers, for example). More manufacturing +capabilities are expected to be released in the next version. + +A custom assembly is a bit difficult to make. One must add the assembly +prior to invoice (this is not true of goods and services). If the +assembly is based on a different assembly but may cost more (due to +non-standard parts) you can load the old assembly using Goods and +Services- Reports- Assemblies and then make +necessary changes (including to the SKU/Partnumber) and save it as +new. + +Then one can add it to the invoice. + + +SECTION: Glossary + +Glossary + + [BIC] Bank Identifier Code is often the same as the S.W.I.F.T. +code. This is a code for the bank a customer uses for automated money +transfers. + [COGS] is Cost of Goods Sold. When an item is sold, then the expense +of its purchase is accrued as attached to the income of the sale. +It is tracked as COGS. + [Credit] : A logical transactional unit in double entry accounting. +It is the opposite of a debit. Credits affect different account types +as follows: + + [Equity] : Credits are added to the account when money is invested +in the business. + [Asset] : Credits are added when money is deducted from an asset +account. + [Liability] : Credits are added when money is owed to the business +account. + [Income] : Credits are added when income is earned. + [Expense] : Credits are used to apply adjustments at the end of +accounting periods to indicate that not all the expense for an AP +transaction has been fully accrued. + [Debit] : A logical transactional unit in double entry accounting +systems. It is the opposite of a credit. Debits affect different account +types as follows: + + [Equity] : Debits are added when money is paid to business owners. + [Asset] : Debits are added when money is added to an account. + [Liability] : Debits are added when money that is owed is paid +off. + [Income] : Debits are used to temporarily adjust income to defer +unearned income to the next accounting period. + [Expense] : Debits are added as expenses are incurred. + [IBAN] International Bank Account Number is related to the BIC +and is used for cross-border automated money transfers. + [List] Price is the recommended retail price. + [Markup] is the percentage increase that is applied to the last +cost to get the sell price. + [ROP] Re-order point. Items with fewer in stock than this will +show up on short reports. + [Sell] Price is the price at which the item is sold. + [SKU] Stock Keeping Unit: a number designating a specific product. + [Source] Document : a paper document that can be used as evidence +that a transaction occurred. Source documents can include canceled +checks, receipts, credit card statements and the like. + [Terms] is the number of days one has to pay the invoice. Most +businesses abbreviate the terms as Net n where n is the number of +days. For example, Net 30 means the customer has 30 days to pay the +net due on an invoice before it is late and incurs late fees. Sometimes +you will see 2 10 net 30 or similar. This means 2 + +10 days but due within 30 days in any case. +fdl.tex |