Finance tools

Trial balance: A summary of all the accounts in the general ledger and their balances. This report is useful for ensuring that all transactions have been recorded correctly.
Aged debtors and aged creditors: These reports show how much money is owed to the business by customers and how much the business owes to suppliers. Keeping track of these amounts can help identify potential cash flow issues.
Bank reconciliation: This report compares the business's bank statements to its accounting records, ensuring that all transactions have been recorded accurately.
Profit and loss: This report shows the business's income and expenses over a specific period of time, helping to identify areas where expenses can be reduced and revenue can be increased.
Balance sheet: This report shows the business's assets, liabilities, and equity at a specific point in time, providing an overview of the business's financial position.

Adding Custom Templates

Click on the top left organization.
Select Settings.
Select Invoice Settings.
Select New Branding Theme (or scroll down to modify the relevant theme). Note that each branding theme has 5 different documents in Word (DocX) you can upload:

Invoice
Credit Note
Statement
Purchase Order
Quote.

Each document can use the following placeholder fields to customize the document.

Add custom templates

Click on top left organisation
Select Settings
Select Invoice Settings
Select New Branding Theme (or scroll down to modify the relevant theme). Note that each branding theme has 5 different documents in Word (DocX) you can upload

Invoice
Credit Note
Statement
Purchase Order
Quote

Each document can use the following placeholder fields to customise the document

Sample Quote

Link to document

Tern Expense Recharges to Portfolio Companies

Accounting
Reports
Tracking Summary
Set FROM date and TO date
Select “Expenses” from Account Groups
Leave Tracking Category as “Recharge Category”
Pick the numbers under “Net Activity” for the portfolio companies to recharge for the relevant mont

Instructions to accountant

At the beginning of each month, do the following to find out how much to recharge to the portfolio companies

Go to this link Xero | Expenses | Tern Capital Limited
Select FROM date as the 1st of the month two months prior. If you invoicing Meta Broadcast on 1 April for March 2023 services, then the expenses recharge will be for February 2023. Therefore, the FROM date should be 1 Feb.
Select TO date as the end of the relevant month e.g. 28 Feb 2023 in the above example.
Filter by Recharge Category - SELECT THE RELEVANT PORTFOLIO COMPANY
Click Update
Look at the total and this is the amount to recharge. Take a backup of this by exporting this in Excel (bottom right) and attach it to the invoice sent to the Portfolio Company
Do steps 4-6 for every portfolio company

Accounting-Financial Force

Inter-company

How to post ICO entries: a) journals, b) sales/payable invoices or c) cash TB notes: TB to improve understanding of the issues here, eventually will need Jamie’s input
How do we create a ICO report that adds to zero across the matrix?
TB notes: contingent upon the point above being carried out

Management Reporting

How do we create management reports where costs are shown in the correc= t management reporting (e.g. some of TCSL costs belong to Telency)?TB n= otes: I will explore doing this without using the consulting hours - suppor= t should be able to give some indication whether Six Fins Costs for TCSL ca= n be recategorised as Telsis Systems Limited. Costs that will need to be tr= ansferred are: 1) Six Fins COS, 2) 20% of relevant employee salaries - are = there others?

Budgeting

How to set P&L budgets for each Company?TB notes: Best to ask o= utside of consulting hours - seems a pretty standard thing that FF customer= s would want
How to create monthly Actual vs Budget variance reports automatically f= or each Company and the Group?

TB notes: will ask outside of consulting hours

A= utomating Invoices and Cash Collection

How can we create automated invoices (e.g. Telency)?TB notes: can y= ou clarify what this means? We need Jamie’s help for this
How can we create workflow so that new invoices generated (automaticall= y) go to another team member for approval and once approved, it goes to the= customer directly?TB notes: we need Jamie for this
How do we automate/send reminders for invoices that are due?

Cash entries a= nd payments

How do you create a CSV export file for payments and then upload to HSB= C? Need to test this properly.

TB notes: requires Jamie attention

Revenue recognitio= n

How do you post automatic journals for recurrring revenue every month? = Maybe this is happenning already.

TB notes: Will check with Terri, I believe that 1/12 of deferred recurri= ng revenue is automatically realised every month. Not sure

Actions

Update the training notes below based on your understanding - SUN= DAY
Enter all sales invoices that are missing from FF and SET the cor= rect start date and end dates - SUNDAY
Send a note to the FF consultant to setup a 30 minute call ASAP -= SUNDAY
Send the note to Jamie Hall on the timings - SUNDAY
Sit with Terri, go through her process of entering sales invoices= , revenue recognition and how to reverse them - update the training notes b= elow - MONDAY
Once you have been trained, post ALL RR transactions for MB on FF= - MONDAY
Get a copy of the ICO transactions summary she has pulled togethe= r for end Nov - MONDAY
Understand how Terri posts the ICO transactions - MONDAY</= li>
Given instructions to Terri on what she needs to do to bring Tels= is up to date - MONDAY
Create an excel table for all ICO transactions and post the missi= ng entries on FF - TUESDAY

Training

Different types of reference numbers

Transaction - TRN-xxx
Journal - J-xxx
Revenue recognition transaction - RT
Revenue recognition transaction line - RTL

General

Transactions could be a journal, sales invoice, purchase invoice,= etc.
RT appear to be automatically posted when a new journal is create= d?? Or is RT automatically posed under Recognise Revenue submission?=
RT transactions can be in progress or committed

Creating RR rules at a Sales Invoice Level

Recurring revenue

Enter sales invoice under the relevant account (e.g. BT TV)</span= >
Create a =E2=80=9CSales Invoice Line Item=E2=80=9D
Set contract start date and end date for the purposes of RR</span= >
Select RR template =E2=80=9CSales Invoice Line Items - Monthly Sp= lit=E2=80=9D

Non-recurring revenue

Enter sales invoice under the relevant account (e.g. BT TV)</span= >
Create a =E2=80=9CSales Invoice Line Item=E2=80=9D
Set contract start date and end date for the purposes of RR</span= >
Select RR template =E2=80=9CSales Invoice Line Item - % Complete= =E2=80=9D ??? If so, how do you set multiple percentages?

Recognise Revenue

Goto =E2=80=9CRecognise Revenue=E2=80=9D tab
Set the end date of the revenue recognition period
Select all the invoices where we should recognise revenue<= /li>
Submit
Give it a RR description
Select the month when revenue should be recognised

How to discard incorrect recognised and committed RR transactions<= /span>

Do we have to delete the respective journal first and then discar= d the transaction?

Goal

Revenue recognition - we track revenue recognition manually and al= so in financial force. For our audit, we want to understand why there are d= iscrepancies and make the necessary alterations.

Problem

We can identify that there is a difference between our manually ca= lculated number and the one calculated in PL BS Detail report. However, whe= n we go into the details of the relevant nominal ledger code (GL Details) w= e cannot see by invoice the breakdown of the total for the nominal code (wh= ich is how our manual sheet is organised). Furthermore, when we look at the= revenue recognised by invoice in the report =E2=80=9CRevenue Recognition S= ummary - Invoices=E2=80=9D, the total sum of all invoices recognised is dif= ferent from the nominal ledger code for Revenue in the =E2=80=9CPL BS Detai= l=E2=80=9D report.

Specific questions

How can we see in one place a) revenue recognised by invoice and = b) revenue recognised/included in P&L report by some other means?</span= >
How does the revenue recognition process work from posting an inv= oice to completion?
What are the definitions of the different reference numbers and h= ow do they relate with one another?

Transaction - TRN-xxx
Journal - J-xxx
Revenue recognition transaction - RT xxx
Revenue recognition transaction line - RTL xxx
Sales invoice - SIN xxx

How do we correctly run AP and AR aging repors?
How do we generate multi-currency reports?