A majority of the files that affect financial reporting and exporting use posting codes, while a few files need to be set up using general ledger accounts. Below are the files that will need to be reviewed or set up with either a posting code or a general ledger number.
Files that use Posting Codes
Posting codes are used in the following files within FocalPoint. Please go into the following files as described below to ensure proper setup of financial tracking:
Store manager file – (C-4 from the main menu), Posting Codes tab.
•Most of these fields should already be filled in for you, but can be changed if needed. It is rare for these fields to need to be changed.
•Tax Posting Code - Tells FocalPoint which posting code to use for tracking and exporting sales tax liability
•Delivery Posting Code - Tells FocalPoint which posting code to use for tracking and exporting delivery revenue.
•Cleaning Posting Code - Tells FocalPoint which posting code to use for tracking and exporting cleaning revenue.
•AR Posting Code - Tells FocalPoint which posting code to use for tracking and exporting Accounts Receivable debits and credits (invoices and payments).
•Service Charge Posting Code - Tells FocalPoint which posting code to use for tracking and exporting finance charge revenue.
•Merchandise Sales Posting Code - Tells Focalpoint which posting code to default to when adding merchandise either directly into the merchandise file or from a purchase order.
•Rental Posting Code - Tells FocalPoint which posting code to default to adding rental items either directly into the rental file or from a purchase order.
•New Rental Sales Posting Code - Tells FocalPoint which posting code to use for tracking and exporting revenue from the sale of new rental items.
•Used Rental Sales Posting Code - Tells FocalPoint which posting code to use for tracking and exporting revenue from the sale of used rental items.
•Daily Deposits Posting Code - Reserved for future development.
•Transfer Posting Code - In a multi-store environment, if you transfer an item from one store to another and you want the reduction/increases in inventory to be recorded/exported, then this field is used to balance the entry. For example, if I transfer an item that costs $10 from store 1 to store 2, the inventory account in the posting code assigned to the item will be reduced (credited) by $10. The MAIN account of whatever posting code is assigned here will be debited by$10. Likewise, when I receive the item in store 2, the inventory account in the posting code assigned to the item will be increased (debited) by $10. The MAIN account of whatever posting code is assigned here will be credited by$10.
•TIPS Posting Code - If you collect tips using integrated credit card procesing, use this field to determine the posting code that any tips collected shoudl go to.
•Unapplied Misc Income (Payments) - Used for CASH BASIS accounting. When you take a payment on account but do not apply it to any invoices (not advised when on cash basis), FocalPoint will debit A/R and credit the main account associated with this posting code.
•Rental Purchase Option - This is a posting code related to an accural account that is used with RPO functionality in FocalPoint. If, for example, you have an order where 80% of rental will be allowed to be applied to the purchase of an item, and the rental rate for the item is $1000 per month, then each month, $200 will go to rental revenue per the rental posting code associated with the rental item, and $800 will go to the accrual account that is designated in the main account of this posting code.
•Rental Option Fee - This is a posting code related to an income account that is used with RPO functionality in FocalPoint. When using RPO functionality in FocalPoint, you are able to assess an "Option Fee", an additional charge, to bill the customer for processing or the work you'll have to go through to replace the unit once it's sold. The revenue for the option fee goes here.
•Drawer Close Over/Under Reason - Reserved for future development.
•Drawer Close Cash Added Reason - Reserved for future development.
Rental Equipment File – (2-2 from the main menu), Rental Information 1 tab
Posting codes are assigned to each rental item. If Visum converted your rental items for you, all rental items have "Rental Revenue" (posting code 15) assigned to them. However, you can track revenue for different items (or types of items) by assigning different posting codes to the items. For example, you may want to set up a new posting code for "Special Events Revenue", and then change all of the posting code assignments for your rental items that are related to special events to the new posting code.
Merchandise File – (2-3 from the main menu)
Posting codes are assigned to each merchandise item. If Visum converted your merchandise items for you, all merchandise items have "Merchandise Revenue" (posting code 14) assigned to them. However, you can track revenue for different items (or types of items) by assigning different posting codes to the items. For example, you may want to set up a new posting code for "Repair Parts", and then change all of the posting code assignments for your merchandise items that are related to repairing equipment to the new posting code.
Rate Tables – (2-7 from the main menu)
Posting codes that are assigned to rate tables are used as "defaults". For example, as you are setting up a new rental item, you will assign a rate table to the new item. Whatever posting code is in the rate table will be used as a default for the new rental item.
Payment Types – (3-7 from the main menu)
You may choose to have different payment types (Cash, Checks, Credit Cards), point to different posting codes so that you may track these different payments separately. For example, your cash and checks may be directed to a posting code that uses "Undeposited Funds" for the Main GL Account Number, while your credit cards, which are deposited directly into your bank account, may be directed to a posting code that uses "Checking Account" for the Main GL Account Number
Additional charges file – (3-G from the main menu)
Here, you decide which posting code (and which General Ledger Account) should be used when you assess additional charges like surcharges, environmental fees, etc. See "Additional Charges" in the FocalPoint Setup Guide for more information on Additional Charges.
Tech File (E-4-2 from the main menu) (for posting code for labor)
The Tech File contains the ID's and rates for the technicians repairing items and recording this information in Work Orders. This "Tech ID" is different from the FocalPoint "User ID" set up in the User File. You can make this ID the same or different from the FocalPoint User ID. You do not have to have a FocalPoint User ID in order to have a Tech ID. You have the ability to track the revenue for each technician separately by assigning different posting codes to tech id's.
Files that use General Ledger Accounts
There are a few exceptions where the posting code logic is bypassed in FocalPoint. In these files you assign the general ledger account number itself to various records. The reason why these three files require direct general ledger account assignment is simple. As mentioned earlier, posting codes create a buffer between your accounting books and employees. These three files listed below also act as the same kind of buffer (they ARE the buffer, just like a posting code IS the buffer):
Expense Codes – (3-5 from the main menu)
Expense codes are created in FocalPoint to be used at times, for example, when you are relieving inventory or creating credit adjustments in A/R. For times when order processing procedures are being bypassed, it is necessary to be able to offset credits (decreases in assets like A/R and inventory accounts, or increases in revenue accounts) with debits (expenses or otherwise). It is typical to see at least three expense codes set up during the initial setup of FocalPoint, then others added afterwards:
Inventory Adjustment - Should be set to an Expense account that will be debited (if you are decreasing inventory) or credited (if you are increasing inventory) by "expensing" via FocalPoint's "Expense Rental / Merchandise" functionality (5-2 from the main menu)
Finance Charge Write Off - Should be set to your revenue account that you would normally credit will you charge finance charges. Whatever account is in this record will be debited.
Bad Debt Write Off - Should be set to your "Bad Debt Expense" account.
Misc Payments Reasons – (3-C from the main menu)
Miscellaneous Pay Reasons are used to allow you to increase the cash (or checks or credit cards) in your cash register(s) without processing a rental or sales invoice. Miscellaneous Pay-Ins, Take Cash Out, and Miscellaneous Pay-Outs all use the Miscellaneous Pay Reasons file to help track how these types of "non-invoice" funds should be appropriated.
Deposit Codes – (6-9-3 from the main menu)
These deposit codes are only used when you make A/R payments on account via "Payment Batches" in Accounts Receivable (6-4 from the main menu ). Deposit codes are set up to allow you to determine what bank accounts and what General Ledger Accounts will be affected when you are creating these payment batches. These deposit codes must be established prior to creating payment batches in A/R.
As mentioned earlier, setting up general ledger accounts in FocalPoint is optional, yet strongly recommended. Without general ledger accounts set up in FocalPoint, the above three files will not be able to be utilized if you wish to extract financial information of FocalPoint. Upon completing the setup instructions above, please move to the next section.
