Implementation
Rule templates in Liikekirjuri model company
Copying rules
Automatic entry rules
Starting calculation
Reporting internal transactions (calculated interim financial statements)
Instructional video on automatic entries (in Finnish only)
The purpose of automating entries is to reduce manual work and the number of errors in accounting. With automatic entries, accounting is more up-to-date and, if necessary, at an interim financial statement level every month.
Automatic entry rules allow for, among other things,
- roll over balances from accounting objects to other accounting objects,
- calculate payroll overheads and vacation pay reserves,
- record inventory changes in relation to sales and purchases,
- tax calculation, and
- calculate expense residuals for each month of the fiscal year.
Implementation
Activation in Heeros Menu
Heeros automatic entries are activated in the Heeros Menu by selecting the company (in the checkbox next to the company name) and clicking the Accounting++ icon in the upper ribbon.Rule templates in Liikekirjuri model company
Using rule templates, a calculated interim financial statement can be produced monthly. The rule templates are designed so that postings are directed to an internal voucher type (80) and the accounting accounts used are so-called calculated accounts (no general ledger transactions are recorded for these accounts). These account numbers are not available in the Liikekirjuri chart of accounts and must be created either in the Liikekirjuri model company or in the company's own accounts.
Before implementing automatic entry rules, it is good to review both voucher types and accounts in the accounting settings. For the voucher type, it should be checked that it is marked as an internal voucher type so that automatic entries do not direct to the general ledger. Read more about accounts here and voucher types here.
List of accounting accounts used with rule templates
10499 – Calculated depreciation intangible assets
10599 – Calculated depreciation goodwill
10899 – Calculated depreciation other long-term expenses
11499 – Calculated depreciation buildings and structures
12999 – Calculated depreciation machinery and equipment
13799 – Calculated depreciation tangible assets
15019 – Calculated change in inventory
29799 – Calculated holiday pay liability and social security accrual
29689 – Calculated income tax
44249 – Calculated change in inventory
45999 – Calculated holiday pay (variable wages)
46999 – Calculated social security costs holiday pay (variable wages)
59998 – Calculated holiday pay (fixed wages)
67999 – Calculated social security costs (fixed wages)
69299 – Calculated depreciation
99699 – Calculated taxes
The rule templates for the Liikekirjuri are numbered by subject into the following groups. The numbering takes into account the order of execution of the rules.
Depreciation
100 – 150 Declining-balance depreciation/Opening balance and the 1st month of the accounting year (used for the 1st month calculations)
200 – 250 Declining-balance depreciation/Monthly change (used for other months of the accounting year)
300 – 350 Declining-balance depreciation/Elimination of the depreciation from internal reports (initiated after the depreciation entry)
Holiday pay and social costs
400 Accrued holiday pay liability from wages (variable wages)
405 Elimination of accrued holiday pay from internal reports (variable wages)
410 Social costs from wages and accrued holiday pay liability (variable wages)
415 Elimination of recorded social costs from internal reports (variable wages)
500 Accrued holiday pay liabilities from salaries (fixed salaries)
505 Elimination of recorded holiday pay from internal statements (fixed salaries)
510 Social costs from salaries and accrued holiday pay liabilities (fixed salaries)
515 Elimination of recorded social costs from internal statements (fixed salaries)
Inventory change
600 Inventory change from sales (sales margin 30%)
610 Inventory change from purchases
615 Elimination of the recorded inventory change from internal reports
Taxes
900 Calculated tax
910 Prepaid taxes (elimination from internal reports)
Copying rules
Rule templates have been created for the Liikekirjuri model company, which can be partially or fully copied for the company's use. It should be noted that the rule templates are only an example, and the rules must be reviewed and modified as necessary before implementation.
The rules are copied in Finago Modular Accounting Specifications - Automatic entries section.
Rules can also be created without copying, using the + button. You can switch to copying using the Copy rulesets button.
Copy selected rulesets
After selecting the company, you will be taken to a screen where you can choose the rules to be copied. The rules will be added consecutively numbered after the company's own rules.
Copy and replace all rulesets
After selecting the company, all automatic entry rules for that company are copied to this company. If the company already had its own rules, they will be replaced by the rules of the company being copied. The rules are established using the same numbers as they are in the source company.
Automatic entry rules
The rules for automatic entries can be viewed either in a list view or a table view. If the company has no rules, the opened view will be empty.
The automatic entry rule consists of four parts:
- Action buttons at the bottom of the screen
- Header information, i.e., specifications related to the operation of the rule.
- Filters, i.e., what information is included in the accounting from the original transactions.
- Entries, i.e., what type of accounting entries are generated as a result of the rule.
Action Buttons
Check closes the open rule.
Plus button opens a blank template where a new rule can be created.
Save button saves.
Copy-button copies the currently open rule and creates a new rule from it. Remember to give the new rule a new name and assign it a unique number indicating its execution order.
Delete removes the rule. The program will ask for confirmation before deletion.
Navigation between the fields of the form can be done using the tab key or the mouse.
Title information
With the example rule, overhead costs booked to the operating unit 99 (cost unit) are rolled over to the expense cost units (100, 200, and 300) in the selected ratio.
Title is the name of the rule in the settings and it is also displayed when the rule is triggered in the Handle entries function.
Definition is the accounting entry explanation that comes with the accounting entry created based on the rule. The program always automatically adds the date information at the time when the rule is run.
Voucher number determines which voucher type the entry resulting from the rule is recorded to. If you do not want the resulting entries to be directed to the general ledger, the voucher type must be defined as internal.
Counter-entry determines whether the program removes the calculated amounts of the original transactions from the account and any accounting objects by reversing the posting. The reverse posting is done according to the information defined in the Restrictions section.
Accounting objects setting defines how the program takes into account the accounting object information on original transactions with counter entries, in calculations, and with new entries generated by the rule.
Does not take other entered accounting objects into account
- Calculation - Events are included in the calculation as specified in the rules. Events are also included in the calculation if other accounting object levels are used with transactions that comply with the rules. If the rules only refer to cost units, it does not matter if the events have also included project values; they will also be included in the calculation if the cost unit value mentioned in the rules matches.
- Entries - Entries are created according to the established rule. Accounting object details are recorded exactly as shown in the rule. Accounting object values are not inherited from the original events.
- Counter entry - Counter entries are created exactly according to the specifications given in the rules. If only cost unit information is provided in the rules, the counter entry will only have the cost unit, even if the original event had project values.
Takes account of other entered accounting objects
- Calculation - Events are included in the calculation as specified in the rules. Events are also included in the calculation if other levels of accounting objects are used with entries that are specified in the rules.
- Entries - Entries are created in relation to the original entries and using the accounting object data present in the original entries.
- Counter entry - Counter entries are created exactly as the information has been in the original entries.
- NOTE! Entries must not contain accounting object information in the rule. Generally, only accounts are provided in the rules, but if accounting objects are given, consider the provided restrictions.
Takes account only on counter-entries
- Calculation - Events are included in the calculation as specified in the rules. Transactions are also included in the calculation if other accounting object levels are used with the specified entries.
- Entries - Entries are created as defined in the rules.
- Counter entry - Counter entries create exactly the same entries as the original transactions were.
- NOTE! Typically, only an account is provided, and all cost units will then be included.
No other accounting object levels used on the entries
- Calculation - Only those events that fully meet the rules and the information in the original events are included in the calculation.
- Entries - Entries are created as defined in the rules.
- Counter Entry - A counter entry is created for events that exactly match the rules.
Execution Order determines the sequence in which the automatic entry function processes the respective rule. The smaller the execution order number, the earlier the program will process it in that order. In numbering, it is advisable to aim for grouping and loose numbering. Similar rules should be grouped to start with the same number. This makes it easy to visually observe the rules as being related to each other or the same topic when they are launched monthly.
Active selection suggests a rule to be included in the Event Processing function. It is recommended to activate all the rules that you want to be calculated for the company on a monthly basis.
Internal entries determine which transactions are included in the accounting. The options are
- general ledger transactions,
- also internal transactions (both general ledger transactions and internal) and
- only internal transactions (voucher type internal)
VAT- selection determines whether VAT is considered in the rule. The options are
- No - Does not record value-added tax, even if it is a taxable account.
- Regard vat - Records VAT on transactions if the account is taxable.
Automatic entry rules can be used regardless of whether the accounting VAT handling is done on a gross or net basis. However, the selected VAT method affects how the rules should be created, and it also matters whether the month's value-added tax is calculated before or after running the automatic entries.
In the gross method, if automatic entries are to be calculated from amounts excluding VAT, the monthly VAT must be calculated before automatic entries are made.
If you want to perform calculations on taxable events using the gross method, i.e., before calculating the period's VAT, you need to select the setting "Regard vat" in the automatic entry rules.
When accounting is done using the net method, automatic entries can be made either before or after the monthly VAT calculation.
Calculate option defines additional information about what is included in the accounting.
- Events - A typical use case is the accounts in the income statement. If you want to calculate the income statement data from the entire beginning of the year Balances option can be used.
- Balances - A typical use case is the balance sheet accounts, for example, model rules in group 100 - 150.
Divide to accounting period - selection determines
- No selection records transactions in accounting for a specified period
- Divide equally across accounting period - primarily used in calculating residual depreciation. This distributes the depreciation evenly across each month of the financial year.
Rules
Rules refer to which data is included in the accounting from the original transactions.
Percent
How many percent of the events/balance of the specified row are included in the calculation and new entries are created from them or counter bookings are made.
Account start / end fields define the accounts as the accounting range for which calculations are made based on recorded transactions or balances. In the accounting range, account numbers that are not in the company's chart of accounts can also be used (e.g., 999999). In the example, the accounting range is left empty and only limited to the accounting object information (including all accounts that have entries to cost unit 99).
Accounting objects
The ability to restrict with multiple accounting objects, showing the accounting object levels that have been established in the company's general settings.
Rows are added with the + button and removed with the Trash button.
Entries
In the Entries section, it is defined how automatic entries are created, excluding counter entries.
The example shows that the General Cost Unit 99 is distributed to cost units 100, 200, and 300 according to the percentage field. The account field is left blank here, which means that the entries will be made to the same accounts as the original booking. The counter entry will clear the transactions recorded to cost unit 99.
Starting the calculation
The calculation of automatic entries is initiated in the Open view by clicking the Handle entries button.
Note: If the accounting uses gross VAT processing, the VAT calculation must be done before starting the automatic entries.
Open an action: Automatic entries
Select filter type: The time for which the calculation should be limited. By default, it is limited by month. Time filtering is mandatory. Additional calculations can be filtered using other fields.
Show results button displays the transaction lines that match the specified criteria. By clicking the button again, you can continue to the rules selection view (continue button)
Continue button opens the next selection view:
The view includes all the rules established for the company, including those that are not marked as active. The calculation is performed only with the rules that are selected (check) in the calculation. The number of editable rows indicates how many transaction rows are included in the calculation.
#: Order of execution, in what order the mentioned rule is processed.
Name: Rule name
Doc. Type: Default voucher type, for which automatic entries are made according to the rule. The voucher type can be changed if desired.
Description: A description given by rule, which is followed by a period for which the calculation is made. The description can be changed if desired.
Note date of entries: The date on which automatic entries are made. Please note that the "Divide equally across accounting period" entries (expense residual depreciation) are always made on the last day of each month.
Execute button initiates the calculation and makes automatic entries.
After the calculation, the automatic entries can be processed like regular entries and if necessary, they can be deleted and recalculated.
Reporting internal transactions (Calculated interim financial statement)
If automatic entries have been directed to an internal voucher type (for example 80), it should be noted in the report selection that internal transactions are also included in the reports.
Instruction video on automatic entries (in Finnish)