Dynamics GP Lockbox Processing and Write Off Functionality

This document is help in using the lockbox functionality in Dynamics GP.  Though the term lockbox is meant to represent a service provided by banks it can be used with any file representing monies from your customers.  

This definition should not need adjusting as we will manipulate our file to match it.  In this definition, we have made the following assumptions:

11)      The file will be a tab delimited file.

22)      The format type is single line, which means that the check information only takes one line.

33)      The decimal places in the file are 2.

44)      We want the invoices paid to be specific.  If there is not a match it is imported unapplied.

55)      The first record, the header, is ignored as its just text.

Other than for showing how we are changing a data file sent by your customer you should not need to go into the Lockbox Maintenance or make changes.

Data File

The data files sent to you by your customers can vary greatly.  We only need certain information from the file.  There are:

11)      Total check amount

22)      Check number

33)      Customer number

44)      Paid date

55)      Amount paid (per invoice)

66)      Invoice to apply to

77)      Row Indicator

As an example, see the screen shot below.

 

Depending on your customer you most likely will not have the check number, your customer number for them, or the row indicator.  You will add these to your file.  

The first line of your file is the header line.  The names and spelling are not important but they should stay in this order.  The first line of data is the check information.  The first column row 2 should be the check amount.  The next column is the check number.  If you have one, add it and copy down to all records.  The third column should be your customer number.  Again, enter it and copy down to all records.  The fourth column is the paid date.  This may be in your file.  If not, enter it and copy down to all records.  For the check record leave the amount paid and invoice number blank.  The last column you will enter the number 6.  This is what is called a row indicator.  6 means that it is the check information.  4 means it is invoice information.

For the detail of what is being paid you will start with row 3.  You will have already populated the check number and customer number in the above step.  The columns for Amount paid and Invoice number should be in the file you have been provided.  Copy them into these two columns.  Lastly enter the number 4 for the row indicator and copy down to the last record.

You now have the file in the order it needs to be in.  Now you will need to save it as a tab separated file.  See the image below.

 

 

  

Running Lockbox Processing

To run the lockbox processing go to the Sales Series, Transactions – Lock box entry.  You then pull up the windows below.  Do a lookup on Lockbox ID and find the Lockbox ID.  You will then need to find the file you created previously by browsing out to your computer.  The only other item required is a batch ID.  You can type in any alphanumeric characters.  When you tab off it will ask if you want to create the batch.  After creating the batch you will return to this window.  Click on transactions.

 

This will then import the transactions from your file, and like the normal cash receipts entry, will apply to each of the invoices in your file. You then be presented with the following screen.  It could have the green checkmark, which means it is fully applied, or it may have an exclamation mark for not fully applied.  If it has a red X you may have the wrong customer ID in your file.

When complete simply check the create batch and a cash receipts batch will be created.  You can then edit applied information or post to update your customer record.  This information will also go to your checkbook as a receipt.  You will then create a deposit to update your checkbook balance.

 

Taking care of Discounts and Writeoff’s

To address taking care of discounts taken on the invoices you just paid you can use the Write Off Documents feature in Dynamics GP.  You will select this from the Sales-Routines-Write Off Documents.  You will keep it using the type Underpayments.  You can filter on one customer.  Put in a write off limit.  You may want to look at your source file for the largest discount and enter it here.  You will also need to make sure that you allow write offs on the customer card under options.  That supersedes this window and without it marked with unlimited or a dollar amount, nothing will be done on this window.  After making these choices you can click on the Preview button.  

 

 

All about Landed Cost Formula

Just how much are you spending on importation? Is it worth it?

Starting a manufacturing or retail business can be tricky. You need to consider where you source your raw material supplies (manufacturing) and ready-for-sale products (retail). Clients who source materials from a different part of the globe are called Importers. They may experience miscalculation of pricing of goods the first time around because of improper cost accounting. As an importer, you should know that the cost of materials you buy is not the only amount you pay. There are other charges you may not know of yet. This is where the Landed Cost Formula comes in.

What is Landed Cost Formula?

In a nutshell, Landed Cost Formula is the full amount you spend per imported good or material. This takes into account the following: Price of Imported Good, Freight Costs, Insurance, Storage Costs, Customs Duty, Tax, Customs Clearance, and more.

Clothing Manufacturing Business

Let’s say you are a clothing manufacturing business and you need to source out raw materials from China. You will definitely need cloth, sewing materials, and the like. If you check out your supplier’s prices, they seem reasonable. However, because that is not the only money you cash out upon delivery, it is important for you to understand other expenses you will be paying. Your Chinese supplier may not know the Customs Duties and Taxes in your state, so you may talk to your customs department for more information.

How Do I Calculate my True Landed Cost?

There are some clients who complain that they only get to know how much they really spent long after their shipments have arrived. Factors like foreign exchange rates, additional customs payments, and FOB can destroy your initial costing. This is why you need to have a clear idea of all costs you may be incurring and use estimates in your computations. To make smarter decisions, Enterprise Resource Planning (ERP) Software is readily available to help you do just that and focus on running your business instead of worrying about cost accounting.

How ERP Consulting LLC Can Help

ERP Consulting LLC has a dynamic knowledge on different businesses that plan to operate with global connections. We help to install Microsoft Dynamics GP in Pataskala Ohio so you can better choose which materials to source for your products. Our firm also offers support and after-sale services so you need not worry about improper guidance. Check out our Web site for more information at erpconsultingllc.com or give us a call at 740-951-0220.

Microsoft Dynamics GP will help you gain better control on all aspects of your business. This includes management of costs, inventory, accounting, human resources, customer relationship management, and more. Call us today and take the next step to your business’ growth!

5 Advantages of ERP Software

If you want an all-in-one software for all workflow across your business’ departments, ERP Software Systems is definitely the solution for you! Whether you import raw materials (manufacturing) or retail products from abroad, your company will surely be better off with ERP solutions. Here are the reasons why:

• Integration to a Single Software Application.

  All the processes in all departments like Finance, Accounting, Human Resources, Logistics, and Marketing/Sales will be shown to you on one screen.

• Easy Functions.

  You will be able to check orders, track inventory, see improvements in revenues and sales, and more. This is especially important to import and export clients who need to always be on the lookout for more income and minimize on unnecessary expenses.

• Unified Reporting System.

  With all the work across all departments in one application, you will have a better working knowledge of what is going on and can better analyze statistics.

• Collaboration Across Departments.

  ERP solutions will give you better visibility across all departments and will enable faster and smarter work output. Your employees can work smarter instead of harder and you will thank ERP for enabling them to do so.

• Business Intelligence Functions.

  Now your ERP system will be able to give insight for you to have better decisions. It will give you insight on how to improve a current business process, as well as identify areas for improvement.

Running a business can be difficult at the start, but if you run it smart, you can focus on growing it more than running it. Getting smart tools to aide you will allow you to earn more with less effort. If you’re looking for ERP solutions, ERP Consulting LLC can help grow your business!

We offer Microsoft Dynamics GP in Pataskala Ohio that overlooks all including Financial Management, Languages, Business Intelligence and Reporting, Human Resource Management, Supply Chain Management, Configuration and Development, Customer Relationship Management, and Project Management.

About ERP Consulting LLC

We offer dynamic ERP solutions in Pataskala, Ohio. Our President and Manager, Michael J. Taranto, has had 25 years of success in the consulting business where he offers his experience in all aspects of running a successful business. For more information about us, check out our Web site at erpconsultingllc.com or give us a call at 740-951-0220. Let us know how we can help you grow your business and earn more today!

Fundamental Costs of Start-up Business

The country’s economy today heavily relies on various corporations, partnerships and sole proprietors. Owners, partners, directors and stockholders of these business establishments and the government practice a mutual relationship. These businessmen provide employment and basic needs of the community’s citizen while the government protects their businesses through passing statutes which regulate the mechanism of trade. Hence, every business idea will be useful to the community and to the entrepreneur who earns money through that idea. Also, businesses are essential in the country’s economic survival. Despite these benefits and advantages, not all business ideas become applied and come into existence. No matter how novel and noble an idea is, it would be in futile if you do not have the capital to start-up the application of such. So, what are the possible costs you will incur once you want to start your own business? Here are some of the costs you should consider as enumerated by ERP Consulting LLC.

• Research Cost

  Nobody would want to go into a battle unprepared; and this is the very reason why every business idea should undergo a long period of rigorous, accurate and detailed research. The research necessary before beginning your business is not entirely about your proposed product or service per se.

  Before entering the market, you should also check the financial condition of your target market, the economic status of your community and the need for the particular product or service you are about to launch.

  If you fail to conduct a well-versed research, you will be preparing to fail.

• License and Permit Fees

  Whatever your business idea is, if you are serious and are willing to pursue it, you have to be prepared of the requirements laid down by the government. Whether it is a product or service, the government will conduct inspections on the place where you are to manufacture, distribute or carry out your product or service.

  Moreover, starting-up of any business has a corresponding license and permit fees provided for by the applicable statutes in your location. You will have to file the required documents plus the fees before you can begin your business operations.

  This is one of the consequences of the mutual relationship between business owners and the state.

• Supplies and Equipment Expenses

  No business establishment can operate without the basic materials at their place of business. In fact, even service-providers need office supplies before they can start to work.

  For this reason, you should also take into account the amount you will need to pay for the pieces of furniture, machineries, raw materials and all other things you would need to create your product or offer your services to your clients or customers.

  In choosing supplies and equipment, you should remember to not just look at the price but also their durability and quality.

• Marketing Expenses

  What is a product without an end-user? What good is a service without a client or customer?

  A product, if not purchased, is nothing. Each service, without anyone who appreciates it, is for naught. Thus, every establishment shall capture their market through various marketing strategies like advertising and promotions.

  To persuade people to purchase what you offer, you have to take into consideration the fundamentals of marketing:

  • You should offer a need.
  • If not, you have to make them need it.
• Employee Fees

  Even if a business sells product alone, the owner would still need manpower to do certain acts in the furtherance of manufacturing or producing the object to be sold. More so, service-providers would necessitate employees who will be trained to carry out specific tasks for the company’s clients.

  Therefore, as an owner, you should also take into account the probable costs of hiring your employees. You can start with reading the applicable labor laws on the matter to know the minimum price of hiring the people you need, as well as their rights which you need to consider.

Manpower is the best asset of every business, you should take care of yours even before you start-up your business operations. Being an entrepreneur could be very fulfilling, financially and morally. However, you should monitor your business well; otherwise your efforts would be pointless. To help and guide you in monitoring your business, you can seek the help of experts of ERP Consulting LLC, your provider of Microsoft Dynamics GP in Pataskala Ohio and your professional partner for growth.