Axional ERP lets you automatically incorporate all the complexity you may find associated with your cash accounting processes, optimizing their eventual accounting and financial handling.
According to the type of point of sale, it is possible to differentiate the features of the accounting model you wish to apply, such as in the case of a retail model vs. wholesale cash and carry.
Starting from a specific accounting model, the system makes it easy to account for and differentiate sales belonging to a transaction according to the types of products included. This allows users to distinguish between sales at a higher or lower level of detail, such as by individual item, by item family, by analytical section, etc. It also lets users distinguish only by the store location of the sale, if necessary.
A transaction statement is comprised of theoretical monetary amounts obtained via the receipts involved in the transaction, as well as reported charges and refunds added by each of the forms of payment shown on the sale receipts used in the statement.
A series of options with differing accounting implications is available to define accounting rates.
Forms of Payment
For each form of payment, users can assign attributes for accounting purposes via:
- General ledger, which helps account for the difference between income from cash, credit cards from various entities and branches, as well as provider vouchers, promotional vouchers, or individual customers’ credit accounts.
- Type of bill of exchange, for forms of payment whose processing as income or expense occurs later via administrative billing management (for example, promotional vouchers).
- Cashflow operations for automatic integration with real cashflow forecasting.
Defining forms of payment allows you to link each store to a bank branch where cash will be deposited. With cash-based income, therefore, cash payment amounts are not only accounted for in transactions, but also by the bank branch, helping to generate real cashflow forecasting. When cashflow activity is submitted, it is possible to report the code of the bank branch where cash was deposited as a reference, facilitating later reconciliation with bank statements easier.
In a cash and carry model, all daily cash-to-bank-account transfer activity for certain stores can be combined, if necessary, with the company’s centralized cash accounting, until the deposit is processed via secure transport.
These functionalities ensure that up-to-date accounting information is available, facilitating a greater degree of control over bank reconciliation.
For income from credit cards, creating specific forms of payment that differentiate between banking entities, or between card types with different surcharges or expiration dates, facilitates various processes. These include accounting calculated income and surcharges, creating cashflow forecasting, and eventually verifying surcharges.
Just as with cash, accounting helps generate cashflow forecasting, distinguishing between not just the banking entity, bank account, and type of card, but also between card payments processed by physical card reader or payment gateway.
Though accounting individual in-store transactions generates differentiated accounting entries, in cashflow forecast creation a subsequent accounting process is available for those forms of payment handled by a payment gateway. Their amounts are grouped into one row, which simplifies reconciliation by placing all card payments for the entire set of stores on one row by banking entity.
Banking Fees and Commissions
Users can optimally compare the conditions of banking fees and commissions on credit cards, with information integrated from bank statements.
Axional ERP/Retail calculates the theoretical surcharges of cards for each transaction, factoring in the bank, dates of validity, and card company (Visa, Amex, etc.). Surcharges can be recorded by expense per store or by their effect on total income for the type of card to which they correspond. As such, when necessary cashflow forecasting for each type of card is performed the theoretical surcharges are factored in, whether as a deduction from the net income or as a complementary negative-sign entry, according to the banking entity’s operative policy.
This functionality facilitates bank reconciliation, verification of surcharge conditions agreed upon for each card type by banking entities, and ultimately, evaluation of overall banking business with each entity.
Other forms of payment
Other forms of payment include customer credit, vouchers, etc. which are recorded in accounts or included in expenses.
If a specific action must be recorded in receivables in order to manage a sale on credit to a specific customer which has come due, Axional ERP/Retail lets you generate a bill from a receipt, and once the bill is accounted, follow the account process relevant to the payment method (check, transfer, etc.)
Axional ERP/Retail automatically calculates the taxes accumulated by cashflow transactions as part of the accounting process. To do so, it obtains tax data either directly from receipts or from retail sales data stored in the Analysis and Data Warehouse module, aiming to optimize the speed of the process.
If individual tax records for specific customers are required, with the VAT identification number and customer data included, Axional ERP/Retail lets you use a receipt to generate a bill.
Axional ERP/Retail automatically calculates the difference between theoretical income and income accumulated from cashflow transactions. According to the sign of the result (positive or negative), an accounting position and price difference account is assigned, gathered from the parameters set for that store’s accounting entry.
Virtual POS Integration
Integration with Virtual POS for web sales is performed by incorporating files on income and refund activity details which correspond to various forms of payment, including:
- Virtual POS
- Cash on delivery
Each form of payment may have specific conditions for fees and commissions, which will be factored in when surcharge cashflow is automatically calculated upon generating the collective activity used for income cashflow forecasting, to be reconciled with bank statements.
Bank Reconciliation Rules
If a distribution or retail company performs bank reconciliation, there are several peculiarities that translate into specific reconciliation rules.
First of all, with regards to the reconciliation of cash income, the bank branch in which the income was deposited should match the branch notified in bank statement activity.
On the other hand, applicable to both cash and credit cards, rules have been defined regarding the following:
- Maximum number of days of offset between the date of real cashflow activity and the value date recorded on the bank statement.
- Acceptable differences due to rounding. A maximum rounding margin may be defined by banking entity and type of entry, as well as the general ledger impacted by each type of operation’s amount of potential difference, in cases of automatic reconciliation which fulfills the default margins set.
Accounting Closing and Consolidation
Accounting closing and consolidation utilize Axional ERP/FI functionalities to automatize aggregation and reconciliation balance cancellation processes.
To these ends, Axional ERP supports automatic identification of both purchase and sales accounting and other accounting entries related to transactions or other types of accounting records (portfolio, debt, etc.) in which companies belonging to the same consolidated group are involved, aiming to eventually cancel the consolidation balance.
- Automatically incorporates all the complexity which may exist in your cash accounting processes, optimizing their subsequent accounting and financial handling.
- Ensures that up-to-date accounting information is available, facilitating a greater degree of control over bank reconciliation
- Fully integrated with alternative payment methods such as Virtual POS.
- Supports verification of the surcharge conditions agreed upon for each card type by banking entities, and ultimately, evaluation of overall banking business with each entity.
- Automatizes functions related to the consolidation of accounts.