In a previous article NET Genium ERP – Campaigns and CRMService, we completed a series of tutorials that deal with the Customers (CRM) module.
We will now get acquainted with the initial settings of the Finance module and explain how to work with outgoing invoices. These instructions, together with links to explanations of the terms used, can also be viewed online on the website https://www.netgenium.com/en/help/erp/finance-help.
Initial settings
Before you start working with the Finance module, you must first set up the module appropriately. Click on the “Finance” application group in the upper gray bar. Next, click on the “Settings” application in the navigation bar. On the “Business unit” view page, press the button and save the entry to create a new business unit. By business unit we mean a company or corporation on whose behalf we will invoice our customers. Once we have created at least one business unit, we will go to the “Bank accounts” view page and create a bank account record. We will also assign the bank account to the business unit created in the previous step.
The initial creation of at least one business unit record and bank account is required to work with the Finance module.
We can also customize the billing numbers you have created by default. On the “Global codes” view page, you will find number series records for each agenda, namely for outgoing and incoming invoices, outgoing and incoming advance invoices, other receivables and payables, cash vouchers and disbursements from the cash register. We can have multiple number series records created for one agenda, for example, the “Incoming invoices” agenda can be the number series “Incoming invoices” and “Incoming credits”.
On the “Global codes rules” page, we can change the way number series are created. Type series “A” is based on Money accounting software standards, type series “B” is based on accounting software Pohoda. Based on the global codes rules, the codes rules and account coding records were created automatically when the Finance module was put into operation. When changing the global codes rules, it will be necessary to regenerate these records based on the selected global codes rules – for this operation it is necessary to contact our Finance module administrator.
On the “Account codings” view page, you will find account coding records, which are used to facilitate the import of accounting documents created in the Finance module into specialized accounting software. Documents with a set account coding will be automatically posted to the accounting journal when imported into the accounting software on the basis of the set account coding. If we do not expect to export accounting documents from NET Genium to accounting software in the future, it is not necessary to fill in account coding when creating accounting documents.
We can define centres on the “Centres” view page if we want to introduce a breakdown of costs and revenues. When creating several records of centres and their settings in the accounting documents of the Finance module, we can then simply filter these documents in statistical reports by centre.
If we use more than one petty cash funds (eg Czech and euro), we can create the relevant petty cash fund records within the “Petty cash funds” view page. If we do not create cash register records, all receipts or disbursements from the cash register will be assigned to a common default cash register.
On the “Uniform exchanges rates” view page, we have the option to create foreign exchange rate records. This is useful if you want to invoice in a foreign currency and at the same time want to use a single exchange rate for that foreign currency for a certain period of time (usually the whole year). If we want to use the current foreign exchange market rates announced by the Czech National Bank, we leave the foreign exchange rates table blank and do not create any records.
The “Payment types” view page groups records that are used to define invoice payment methods. By default, the Finance module contains the most common payment types, but if necessary, we can add additional payment method records or change/delete existing ones.
On the “Default texts” view page, we can create records that define very frequently used texts within invoices, eg “Dear customer, we would like to invoice you for the following goods and services:”. These texts can then be copied to the invoice by pressing a single button and then modified as needed. Default texts can be set for both invoice headers and their items.
If we use approval processes for one of the following records: Document in the CRM application; Internal Document in the Organisation application; Order in the Store application; Incoming invoice and Outgoing invoice in the Finance application, you must first create an approval process/scheme. In the application “Process settings” (not in the application “Settings”) in the view page “Types of steps” we will create the Type of the approval process step, including the button names. Next, in the “Processes” view page, we will create an approval scheme/process for each record/form. The approval process can have one or more steps (approvers). Multiple processes can be created for one record type (e.g. Accelerated Approval with One Approver and Standard Two-Stage Approval for Invoice Accepted.). For subsequent records, the approval processes can be linked (using the “First approver” field) in order to avoid duplicate approval of one application (eg approval of the incoming invoice for an already approved Purchase Order). More on the Approval page.
This way we have set up the Finance module and we can therefore start working with its main functions.
Outgoing invoices
1. step – create invoice
In the navigation area, click on the “Outgoing invoices” application, then on the view page of the same name. Then click on the “New invoice” button. This will take you to the edit form for the new record of the outgoing invoice. Here we fill in all the necessary information. In the “Invoice text” section, you can press the NET Genium pre–prepared text button or use Picker to select your own “invoice text”, the method of which we described in the previous section of this article.
Invoice data, including its items, can be easily copied from an existing invoice using Picker “Create a copy of” (more about using Picker in the general help Edit forms). After selecting a certain invoice, all available invoice data will be filled in the new invoice as well.
2. step – create invoice items
Items represent specific services or products that we invoice our customers. Click on the “New item” button and go to the new item form. We enter the name of the item or select it from the catalog of company products and services. In this case, the unit price of the product or service is also charged directly to the item. After any further specification and adjustment of the price and quantity of the item, we can assign the item to a certain business unit and center on the “Links” tab, define a pre-account and attach it to the order item.
After we are done editing the item, we will save the record.
Automatic creation of invoice items
In specific cases, we can also create invoice items automatically. If we have selected the customer's name from the business account database using Picker, the “Copy from time sheets” button will appear, after which all unbilled worksheets assigned to the given customer will be copied to the invoice. When assigning an order, we can also click on the “Copy from order” or “Copy time sheets from orders” and copy to the invoice the items of the order or. unbilled worksheets assigned to the order. Similarly, we can copy items after assigning an incoming invoice whose items we are re-invoicing, or expenses whose items we want to invoice to the customer.
Invoice Approval Request
If a record is subject to an approval process, we will go to the “Approval process” tab and select the corresponding approval process (pre-created by an authorized user) and create an approval scheme for that record. An email is then sent to the approver in the first level of the approval scheme and the item for approval is added to the “My pending processes” table in the Approvals application in the Finance application group and to the corresponding portlet on the home page. If the selected approval scheme contains several approvers, the process is repeated. After approval of the record by the last approver, an informative email is sent to the applicant for approval. A detailed description of the process, including the procedure for creating approval processes, is explained on the approval page.
We will save the invoice.
Settlement of invoice
NET Genium offers several ways in which outgoing invoices can be liquidated (marked as paid). Paid invoices are marked in green on the view pages, unpaid in red. In the invoice record in the section “Total price” on the introductory tab you will find the field “Total amount due”. This tells us how much more needs to be paid to pay the full invoice. On the “Dates” tab, you can enter the date of payment and thus immediately mark the invoice as paid. However, this method is not recommended, because it is not clear from which sources the invoice was paid and the invoice is also not included in the statistical cash flow overview – such payment of the invoice will not change the state of the cash register or bank account. So we go to the “Settlements” tab.
Here, by clicking on the “Assign advance invoice” picker, it is possible to assign an advance invoice representing the amount paid in advance as a down payment for a certain performance. You will also find a list of invoice wire transfer here. These records represent partial invoice payments to our bank account. As soon as the total amount of bank payments reaches the amount for which the invoice is issued, the invoice is automatically marked as paid. Bank payments can be created automatically using the PaymentService. Through the “New cash voucher” button, it is possible to issue a cash voucher for an invoice or a new settlement without a link using the “New single settlement” button. This is a record of simple invoice payments without a link to any other documents. Non-binding settlement will ensure the settlement of the invoice and the reset of the column “Total amount due”, but this method of payment will not change the balance of the cash register or bank account.
Contents of the next article
In the next article NET Genium ERP – Incoming invoices and their approval we will get acquainted in more detail with the work with incoming invoices and the system of their approval within the “Finance” module.
Sincerely, Your NetGenium Team.