Author: Kiu Global

From Vendor Bill to Payment

Once vendor bills are registered in KIU BMP, you can easily pay vendors for the correct amount and at the right time (not too late, not too early; depending on your vendor policy). KIU BMP also offers reports to track your aged payable balances.

If you want to control vendor bills received from your vendors, you can use the KIU BMP Purchase application that allows you to control and pre-complete them automatically based on past purchase orders.

From Vendor Bill to Payment

Record a new vendor bill

When a vendor bill is received, you can record it from Purchases ‣ Vendor Bills in the Accounting application. Some more in depth criteria book of ra online from intriquing,notable and useful information. As a shortcut, you can also use the New Bill feature on the accounting dashboard.

To register a new vendor bill, start by selecting a vendor and inputting their invoice as the Vendor Reference, then add and confirm the product lines, making sure to have the right product quantities, taxes and prices.

Save the invoice to update the pre tax and tax amounts at the bottom of the screen. You will most likely need to configure the prices of your products without taxes as KIU BMP will compute the tax for you.

Validate The Vendor Bill

Once the vendor bill is validated, a journal entry will be generated based on the configuration on the invoice. This journal entry may differ depending on the the accounting package you choose to use.

For most European countries, the journal entry will use the following accounts:

• Accounts Payable: defined on the vendor form
• Taxes: defined on the products and per line
• Expenses: defined on the line item product used

For Anglo-Saxon (US) accounting, the journal entry will use the following accounts:

• Accounts Payable: defined on the vendor form
• Taxes: defined on the products and per line
• Goods Received: defined on the product form

You can check your Profit & Loss or the Balance Sheet reports after having validated a couple of vendor bills to see the impact on your general ledger.

Pay a bill

To create a payment for an open vendor bill directly, you can click on Register a Payment at the top of the form.

From there, you select the payment method (i.e. Checking account, credit card, check, etc…) and the amount you wish to pay. By default, KIU BMP will propose the entire remaining balance on the bill for payment. In the memo field, we recommend you set the vendor invoice number as a reference (KIU BMP will auto fill this field from the from the vendor bill if set it correctly).

 Note

You can also register a payment to a vendor directly without applying it to a vendor bill. To do that, Purchases ‣ Payments. Then, from the vendor bill you will be able to reconcile this payment with directly.

Reporting

Aged payable balance

In order to get a list of open vendor bills and their related due dates, you can use the Aged Payable report, under the reporting menu, (in Reporting ‣ Business Statement ‣ Aged payable) to get a visual of all of your outstanding bills.

From here, you can click directly on a vendors name to open up the details of all outstanding bills and the amounts due, or you can annotate any line for managements information. At any point in time while you’re looking through the report, you can print directly to Excel or PDF and get exactly what you see on the screen.

KIU BMP supports multiple invoicing and payment workflows, so you can choose and use the ones that match your business needs. Whether you want to accept a single payment for a single invoice, or process a payment spanning multiple invoices and taking discounts for early payments, you can do so efficiently and accurately.

From Draft Invoice to Profit and Loss

If we pick up at the end of a typical ‘order to cash’ scenario, after the goods have been shipped, you will: issue an invoice; receive payment; deposit that payment at the bank; make sure the Customer Invoice is closed; follow up if Customers are late; and finally present your Income on the Profit and Loss report and show the decrease in Assets on the Balance Sheet report.

Invoicing in most countries occurs when a contractual obligation is met. If you ship a box to a customer, you have met the terms of the contract and can bill them. If your supplier sends you a shipment, they have met the terms of that contract and can bill you. Therefore, the terms of the contract is fulfilled when the box moves to or from the truck. At this point, KIU BMP supports the creation of what is called a Draft Invoice by Warehouse staff.

Invoice creation

Draft invoices can be manually generated from other documents such as Sales Orders, Purchase Orders,etc. Although you can create a draft invoice directly if you would like.

An invoice must be provided to the customer with the necessary information in order for them to pay for the goods and services ordered and delivered. It must also include other information needed to pay the invoice in a timely and precise manner.

Draft invoices

The system generates invoice which are initially set to the Draft state. While these invoices

remain unvalidated, they have no accounting impact within the system. There is nothing to stop users from creating their own draft invoices.

Let’s create a customer invoice with following information:

• Customer: Azure Interior
• Product: iMac
• Quantity: 1
• Unit Price: 100

The document is composed of three parts:

• the top of the invoice, with customer information,
• the main body of the invoice, with detailed invoice lines,
• the bottom of the page, with detail about the taxes, and the totals.

Open or Pro-forma invoices

An invoice will usually include the quantity and the price of goods and/or services, the date, any parties involved, the unique invoice number, and any tax information.

“Validate” the invoice when you are ready to approve it. The invoice then moves from the Draft state to the Open state.

When you have validated an invoice, KIU BMP gives it a unique number from a defined, and modifiable, sequence.

Accounting entries corresponding to this invoice are automatically generated when you validate the invoice. You can see the details by clicking on the entry in the Journal Entry field in the “Other Info” tab.

Send the invoice to customer

After validating the customer invoice, you can directly send it to the customer via the ‘Send by email’ functionality.

Payment

In KIU BMP, an invoice is considered to be paid when the associated accounting entry has been reconciled with the payment entries. If there has not been a reconciliation, the invoice will remain in the Open state until you have entered the payment.

A typical journal entry generated from a payment will look like as follows:

Receive a partial payment through the bank statement

You can manually enter your bank statements in KIU BMP, or you can import them in from a csv file or from several other predefined formats according to your accounting localization.

Create a bank statement from the accounting dashboard with the related journal and enter an amount of $100 .

Reconcile

Now let’s reconcile!

You can now go through every transaction and reconcile them or you can mass reconcile with instructions at the bottom.

After reconciling the items in the sheet, the related invoice will now display “You have outstanding payments for this customer. You can reconcile them to pay this invoice. “

Apply the payment. Below, you can see that the payment has been added to the invoice.

Profit and loss

The Profit and Loss statement displays your revenue and expense details. Ultimately, this gives you a clear image of your Net Profit and Loss. It is sometimes referred to as the “Income Statement” or “Statement of Revenues and Expenses.”

Balance sheet

The balance sheet summarizes your company’s liabilities, assets and equity at a specific moment in time.

For example, if you manage your inventory using the perpetual accounting method, you should expect a decrease in account “Current Assets” once the material has been shipped to the customer.

This page summarises the way KIU BMP deals with typical accounts and transactions.

Double-entry bookkeeping

KIU BMP automatically creates all the behind-the-scenes journal entries for each of your accounting transactions: customer invoices, point of sale order, expenses, inventory moves, etc.

KIU BMP uses the rules of double-entry bookkeeping system: all journal entries are automatically balanced (sum of debits = sum of credits).

Accrual and Cash Basis Methods

KIU BMP supports both accrual and cash basis reporting. This allows you to report income / expense at the time transactions occur (i.e., accrual basis), or when payment is made or received (i.e., cash basis).

Multi-companies

KIU BMP allows one to manage several companies within the same database. Each company has its own chart of accounts and rules. You can get consolidation reports following your consolidation rules.

Users can access several companies but always work in one company at a time.

Multi-currencies

Every transaction is recorded in the default currency of the company. For transactions occurring in another currency, KIU BMP stores both the value in the currency of the company and the value in the currency of the transaction. KIU BMP can generate currencies gains and losses after the reconciliation of the journal items.

Currency rates are updated once a day using a yahoo.com online web-service.

International Standards

KIU BMP accounting supports more than 50 countries. The KIU BMP core accounting implements accounting standards that are common to all countries. Specific modules exist per country for the specificities of the country like the chart of accounts, taxes, or bank interfaces.

In particular, KIU BMP’s core accounting engine supports:

• Anglo-Saxon Accounting (U.S., U.K.,, and other English-speaking countries including Ireland, Canada, Australia, and New Zealand) where costs of good sold are reported when products are sold/delivered.
• European accounting where expenses are accounted at the supplier bill.

KIU BMP has modules to comply with IFRS rules.

Accounts Receivable & Payable

By default, KIU BMP uses a single account for all account receivable entries and one for all accounts payable entries. You can create separate accounts per customers/suppliers, but you don’t need to.

As transactions are associated to customers or suppliers, you get reports to perform analysis per customer/supplier such as the customer statement, revenues per customers, aged receivable/payables, …

Wide range of financial reports

In KIU BMP, you can generate financial reports in real time. KIU BMP’s reports range from basic accounting reports to advanced management reports. KIU BMP’s reports include:

• Performance reports (such as Profit and Loss, Budget Variance)
• Position reports (such as Balance Sheet, Aged Payables, Aged Receivables)
• Cash reports (such as Bank Summary)
• Detail reports (such as Trial Balance and General Ledger)
• Management reports (such as Budgets, Executive Summary)

KIU BMP’s report engine allows you to customize your own report based on your own formulae.

Import bank feeds automatically

Bank reconciliation is a process that matches your bank statement lines, as supplied by the bank, to your accounting transactions in the general ledger. KIU BMP makes bank reconciliation easy by frequently importing bank statement lines from your bank directly into your KIU BMP account. This means you can have a daily view of your cashflow without having to log into your online banking or wait for your paper bank statements.

KIU BMP speeds up bank reconciliation by matching most of your imported bank statement lines to your accounting transactions. KIU BMP also remembers how you’ve treated other bank statement lines and provides suggested general ledger transactions.

Calculate the tax you owe your tax authority

KIU BMP totals all your accounting transactions for your tax period and uses these totals to calculate your tax obligation. You can then check your sales tax by running KIU BMP’s Tax Report.

Inventory Valuation

KIU BMP support both periodic (manual) and perpetual (automated) inventory valuations. The available methods are standard price, average price, LIFO (for countries allowing it) and FIFO.

Easy retained earnings

Retained earnings are the portion of income retained by your business. KIU BMP automatically calculates your current year earnings in real time so no year-end journal or rollover is required. This is calculated by reporting the profit and loss balance to your balance sheet report automatically.

KIU BMP is beautiful accounting software designed for the needs of the 21st century.

KIU BMP connects directly to your bank or paypal account. Transactions are synchronized every hour and reconciliation is blazing fast. It’s like magic.

Instantly create invoices and send them with just a click. No need to print them.

KIU BMP can send them for you by email or regular mail.

Your customers pay online, meaning you get your money right away.

KIU BMP accounting is connected with all KIU BMP our apps such as sale, purchase, inventory and subscriptions.

This way, recording vendor bills is also super quick. Set a vendor, select the purchase order and KIU BMP fills in everything for you automatically.

It’s that easy with KIU BMP.

Wait, there is more. You will love the KIU BMP reports. From legal statements to executive summaries, they are fast and dynamic. Use KIU BMP’s business intelligence feature to navigate through all your companies data.

Of course, KIU BMP is mobile too. You can use it to check your accounts on the go.