ACKNOWLEDGEMENT

The success and final outcome of this assignment required a lot of guidance and assistance from many people and our group members extremely fortunate to have got this all along the completion of our assignment work. Whatever we have done is only due to such guidance and assistance and we would not forget to thank them. This subject is Computer Based Accounting. This is the Assignment on Subject and Deep Understanding Above Sage Line 50 Accounting Software Package which relevant to the Computer Based Accounting. This report includes that The Creating Company, Edit Chart of accounts, nominal Ledger accounts, Customer and supplier accounts, entering opening balances, and making final accounts . The purpose of this assignment is to provide an insight on how to enter financial information of a company in on the Sage Line 50 Accounting Software package First, we respect and thank the course facilitators, Mr.DMT Madusanka, Mr.GP Subasinghe for giving us an opportunity to complete this report as our assignment and providing us all support and guidance which made us completes the assignment on time, we extremely grateful to you for providing such a nice support and guidance. Last but not least, we would like to express our gratitude to our friends and respondents for the support and willingness to spend some time with us to success this.

1. Introduction

Sage Line 50 is a totally integrated system, which means that when you record a financial transaction into one ledger, all the other related ledgers are immediately updated with that information. Sage Line 50 does your double-entry bookkeeping for you. Sage line 50 record, control and examine our finances quickly in a traditional way, through a state of the art computer program.

The Purpose of this report is to provide an insight on how to enter financial information of a company into the Sage Line 50 Accounting Software package.For this purpose here we have selected the Chanushka (Pvt) Ltd Company.

If so, let us now see how to set up accounts using sage 50 for the company we have selected. In this report provide guideline for you, make accounting using sage 50.

1.1. Sage Line 50 Accounting Software Interface

First, should create a folder by your company name. (Chanushka (Pvt.) Ltd folder)
After Should Change Region on your Computer

2. Details of the Company

The consists of four parts. They are,

Creating an account for the company
Company Preferences
Configuration of the company
Setting up the Currency and change program date

2.1. Create an account for the company

The company started its current financial year from 1^st January 2019. Company profile details can be identified as follows:

Generally, the Company makes the transaction with the Sri Lankan rupee and liable to pay tax under VAT registration number 3565-5647-0001. The Company follows Sri Lankan governments’ tax rule and identified three tax codes such as Zero tax (T1-0%), General tax (T2-5%) and Special Tax (T3-13%)

As delivery addresses, it is used factory and warehouse addresses respectively “No 65/1, Negombo Road, Katunayaka” and “No 56/1, J-ela Road, Seeduwa”. Further, as the default address it is identified Factory address of the company.

Company has established with four departments such as Department of Purchase and Storage, Department of Marketing, Department of HRM and Department of Accounting and Finance and operate daily transactions with diverse product portfolio as “Water Tank”, “Hardware Items”, “Household Plastics” and “Celling Sheet”. Fixed assets of the company are categorized as Land, Building, Office Equipment, Plant and Machinery, and Furniture.

Supplier custom filds are region and rep code, customer custom filds are type, region, and rep code.

2.1.1. Basic Editing

2.1.2. Create an Account for Company

Following path can be used to create your account.

In this interface, you should select two paths.

I. First path: You will select the path that your sage is installed

C:\PROGRAM FILES (X86)\SAGE\ACCOUNTS\CONFIGS\GBR

II. Second path: You will select the path that your company folder is created.

After

After that it will appear a dialogue box to enter the username as the previous. In that You should enter Username as the manager and there is no any password.

The creating of an account for the company is finished in here. According to our company create “Chanushka (Pvt.) Ltd” account..

2.2. Company preferences

The Company Preferences option is a very important area of the program as it affects the way your program displays information. This consists with two parts as mentioned in below.

Add delivery address
Change labels

Following path can be used to edit your company preferences.

This interface is appeared with filled company details.

2.2.1. Add delivery address

To add delivery addresses

Then you can see the entered address in an Address part of the dialogue box. Here we mentioned only one delivery address.

Set default one delivery address

Changes the Set as Default to Remove Default

Edit or delete the entered details

2.2.2. Change labels

This includes how you want to display addresses and additional information on your customer, supplier and product records To see the changes follow path mentioned below.

Example:

Street 1 No

Street 2 Road

Town Town

Country Country

In here you can change “Address Labels” as you want.

2.3. Configuration of the company

The information that you enter here can be saved and used in future installations of Sage Line 50.The Configuration Editor consists of the following areas:

Enter Departments
Enter Fixed Assets
Enter custom fields
Enter products
Enter tax code
Enter terms of the company

To edit the configuration of the company you can follow path mentioned below.

2.3.1. Enter Department

Following path can be used to enter the department, for that we use following path,

Chanushka (Pvt.) Ltd has 04 Departments :

Purchase and Storage.
Marketing
Human Resource
Accounting and Finance

2.3.2. Enter Fixed Assets

2.3.3. Change Custom Field

I. Customer Record Custom Field

The custom fields which belong to the customer are mentioned in here.

Customer Record custom Field –Type, Area, Rep

II. Supplier Record Custom Field

The custom fields which belong to the supplier are mentioned in here.

Supplier Record Custom Field – Region, Rep Code

2.3.4. Change Product

Product Categories :

Water Tank,
Hardware Items,
Household Plastics,
Celling Sheet

The products tab of the Configuration Editor allows you to manage your product categories.

2.3.5. Change Tax Code

According to my company Chanushka (Pvt.) Ltd is following VAT Rate

T1 -0% Zero Tax
T2–5% General Tax
T3–13% Specific Tax

2.3.6. Change Terms

Each time you create a new customer or supplier record. Follow path can be used to change the Terms

2.3.7. Setting up Currency and the setting up the Program Date

This part consists with two sub parts.

Setting up Currency
Setting Up the Program date

Setting up Currency

To set currency you should follow path mentioned below.

You should do changes to this above information as follows.

Currency Name : Sri Lankan Rupees
Currency Symbol : Rs
Major Currency Unit : Rupee
Minor Currency Unit : Cent
The Exchange rate is not edited

II. Setting up the program date

To set a program date you should follow the following path.

Program date should be belongs to the financial year of the accounts.

2.4. Backup yours Exercise

Use following path to backup yours exercise.

Folder which created by the company name from the following path.

Check your folder which is you created.

2.5. Restore yours Exercise

Use following path to Restore yours exercise.

Folder which created by the company name from the following path.

3. Create a Chart Of Account

The Chart of accounts defines the group of each category. You can these reports to analyse your income, Expenditure, assets, liabilities and capital. Each category has a unique code to identify the accounts. We use the following example to learn how to create a chart of account.

Own Chart of Accounts (COA) for the Chanushka (pvt) Ltd , based on following information.

It is used name “Chanu” as the layout name and nominal and control account are used to keep daily transaction details. All bank and cash accounts are created inside the bank module and company has only freehold properties.

Account Code	Description
0010-0999	FIXED ASSETS
0010-0099	LAND
0100-0199	BUILDING
	BUILDING ACCUMULATED DEPRECIATION
0200-0299	PLANT AND MACHINERY
	PLANT AND MACHINERY ACCUMULATED DEPRECIATION
0300-0399	OFFICE EQUIPMENT
	OFFICE EQUIPMENT ACCUMULATED DEPRECIATION
0400-0999	FURNITURE
	FURNITURE ACCUMULATED DEPRECIATION
	CURRENT ASSET
1000	DEBTORS
1100-1149	STOCKS-edit
1150-1199	PREPAYMENTS
1200-1399	BANK (CURRENT)
1400-1499	BANK (SAVING)
1500-1599	CASH IN HAND
1600-1999	PETTY CASH
	CURRENT LIABILITIES
2000	CREDITORS
2100	ACCRUALS
2150	VAT ON SALES
2160	VAT ON PURCHASE
	LONG TERM LIABILITIES
2170-2179	BANK LOAN
2180-2199	DEBENTURES
	CAPITAL & RESERVES
3000-3099	STATE CAPITAL
3100-3150	PREFERENCE SHARES
3300	PROFIT & LOSS
	REVENUE
4000	SALES
4001-4030	SALES DISCOUNT
4040-4099	CREDIT CHARGES
4100-4199	OTHER INCOME
	COST OF SALES
5000	PURCHASES
5001-5099	OPENING STOCKS
5100-5199	DISCOUNT RECEIVED
5200-5220	CLOSING STOCKS
	DIRECT EXPENSES
5221-5299	DIRECT WAGES
5300-5550	MAINTENANCE
	OVERHEADS
5551-5599	ADVERTISING
5600-5699	SALARIES
5700-5799	RENT
5800-5899	WATER BILL
5900-5999	ELECTRICITY
6000-6099	CLEANING
6100-6199	BANK CHARGES
6200-6299	STATIONARY
6300-6399	FUEL AND OIL
6400-6499	BAD DEBT WRITE OFF
6500-6599	SUSPENSE ACCOUNT
6600-9999	MISPOSTING ACCOUNT

3.1. Create a new layout

As the first step we need to create a new layout.

After that must select your created layout as current.

Then you can see Nominal ledger. Now you must select all ledgers and delete

We use “swap” and “ Delete” to remove the pre-created nominal accounts of this software.

3.2. Change Control Accounts

Following path can be used For Change Control Account Number

Create Control Account for “Debtors Control Account”

After changing all control account numbers we must remove the existing control account. So we use Following path

In here we swap and delete the existing control accounts to keep only the control accounts we created.

3.3. Create Fixed Assets Accounts

Following path can be used to create a Fixed Assets account

Create Nominal Accounts for “Building” And “ Building Accumulated Depreciation”

We definitely need to create accounts in both low and high range when preparing accounts for fixed assets.It sets up a fixed asset account in the low range and a accumulated depreciation account in the high range.

3.4. Create a Nominal Accounts.

Following path can be used to create a nominal account

Create Nominal Accounts For “STATE CAPITAL Account”

3.5. Create Floating Accounts

Assign a range for Bank current, VAT on sales and VAT on purchase account. Following path can be used.

Then you will have copies of that account along with the other floating nominal account. “Floating” Nominal accounts are used here because their values can be any value from either the debit or the credits.

Create Nominal Accounts for “VAT Control Account”

3.6. Bank Module

Assign a range for bank saving, petty cash and cash in hand account. Following path can be used

Create Nominal Accounts For “Bank Current Account”

3.7 Error Cheching

4. Setting up Customer Records

When setting up the customer records, there are three records to set up. They are,

Customer Defaults
Trading Terms
Customer List

4.1. Customer Defaults

To setting up to customer defaults record the following path should follow.

In this box there are 4 main tabs called, Record, Statements, Ageing and discount. We should edit only record tab in this moment.

Chanushka (Pvt.) Ltd Customer Default Information

4.2. Trading Terms

The following path is used to edit this record

In here should edit Following the Information in the Customer trading Terms in Chanushka (Pvt.) Ltd

4.3. Customer List

The following path is used to edit customer list

Chanushka (Pvt.) Ltd Customer List information

5. Setting up Supplier Records

When setting up supplier records also there are three types of records to set up. They are,

Supplier Defaults
Trading Terms
Supplier list

5.1. Supplier Defaults.

The Following path is used to set up supplier default record.

Chanushka (Pvt.) Ltd Supplier Default Information.

5.2. Trading Terms

You should follow the following path to set up a trading terms record of the supplier.

In here should edit Following the Information in the Suplier trading Terms in Chanushka (Pvt.) Ltd

5.3. Supplier list

The following path can be used to set up supplier list.

Chanushka (Pvt.) Ltd Supplier List Information

6. Setting up a product Details

The followings are the product details as at 1^st January 2019 of Chanushka (Pvt.) Ltd and create a product list using the following information.

6.1. Add Product Details

7. Setting up Opening Balances

The following opening balances were extracted from Chanushka (Pvt) Ltd manual system as at 01^st January 2019;

Account Name	Debit (Rs.)	Credit(Rs.)
Land	40,838,000
Building	800,000
Building Accumulated Depreciation		400,000
Office Equipment	300,000
Office Equipment Accumulated Depreciation		60,000
Plant and Machinery	950,000
Plant and Machinery Accumulated Depreciation		75,000
Furniture	400,000
Furniture Accumulated Depreciation		40,000
Debtors	120,430
Stocks	2,500,000
Prepayments	60,000
Bank (Current)	500,000
Bank (Saving)	178,000
Cash in hand	65,000
Petty cash	100,000
Creditors		175,000
Bank Loan		2,040,000
Debentures		8,000,000
Stated Capital		34,671,430
Preference Shares		500,000
Profit & Loss Account		850,000
Total	46,811,430	46,811,430

7.1. Opening Balance to Nominal and Control Accounts

7.2. Customer Opening Balance

7.3. Supplier Opening Balance

8. Discounts

There are several types of discounts you can use, giving you great flexibility for making your prices competitive. Most discounts can be set up so that they are automatically applied to an invoice to speed up invoice entry. As you create the invoice the awarded discount can be amended as required. In Sage 50 You can also use discounts on orders, quotations and pro-forms.

The discount value may differ depending on how that type of discount is calculated. The different 4 types of discount available are described below.

Stranded discounts /good customer discounts
Discounts based on an invoice value
Discounts based on a quantity sold
Early settlement discount

8.1 Standard discount /good customer discount

You can record a discount that applies to everything a customer buys from your company by recording it in their customer record. The discount rate will appear on every sales transaction enter for this customer.

8.2 Discounts based on an invoice value

Whenever you raise an invoice or order for this customer, the appropriate discount rate is applied to the total net value. The rate of discount applied is set up in

8.3 Discounts based on a quantity sold

Quantity discount is determined through each product’s discount rate tables. Five tables are given per product. This means that you can give five different quantity discount rates to the different types of customer.

8.4 Early settlement discount

Early- settlement discounts are discounts you give or receive for paying an invoice or bill within a certain time. The terms also indicate when the complete invoice amount is due. Early settlement discounts are tracked in the Sales Discounts account from your list of accounts

9. Fixed Asset Depreciation

The company depreciated their fixed assets based on following depreciation methods and rates.

· Click Module and choose Fixed Asset register

· Then enter Asset References, Description, Date Purchased and choose Assets Type

· Next Click Posting and choose Department

· Next enter Balance Sheet Depreciation N/C and P&L Depreciation N/C

· After Choose Depreciation Method (Straight, Reducing and written off) and enter Depreciation Rate

· Next enter Cost Price and Book value (Cost Price-Accumulated depreciation) as in Chart of Accounts

10. Sales Order Processing (SOP)

sa Sles order details for create sales orders of the company.

· First choose SOP in Module

· Next Choose New/Edit to enter new Sales record

· Next Set Date After choose Debter Account

· Then choose Product Code after enter Description then Quality

· Next Save and Close

· If all quantity is allocated choose product and click Allocate

· If Part od product allocated for sale means click Amend

· Next enter product Code, Description, Allocated and Dispatched product

· Then choose product and click Dispatch and enter Ok

11. Purchase Order Processing (SOP)

purchase order details for create purchase orders of the company

· First choose POP in Module

· Next Choose New/Edit to enter new Purchase record

·         Next Set Date After choose Creditor Account
·         Then choose Product Code after enter Description then Quality
·         Next Save and Close

· Next choose that product and click Order

· If full product delivered choose product and click Deliver
· If Part of product delivered click Amend

· Then choose the Product Code and enter This delivery to delivered Quantity

· After enter the Amend Choose product and click Deliver and Enter Ok

12. Customer Receipt

First you need to change the program date according to the transaction date.

The next step is to go to the bank module and select the account received according to the transaction.

After selecting the relevant bank account, select the customer tab.

Then select the relevant customer account and type the relevant amount of customer recepit of transaction.

Since the programe date was changed first, there is no need to change the date here. The date is displayed automatically.

After you save the transaction on customer tab.

The relevant transaction activity can be viewed from the activity tab of the relevant account in the bank module as well as from the relevant customer account activity in the customer module.

13. Prepayments

Go to nominal and prepay.

Select the account related to the prepayment and enter the relevant details, department. Then prepayment account selected automatically. You should enter total prepayment of year. Another you want to enter amount of months of that. Monthly amount is displayed automatically.

Now you save your transaction.

14. Receipt extra income

First you need to change the program date according to the transaction date.

The next step is to go to the bank module and select the relevant account.

After selecting the relevant bank account, select the reciepts tab.

Then select the relevant account and type the relevant amount of the receipts.

Since the programe date was changed first, there is no need to change the date here. The date is displayed automatically.
After you save the transaction on bank reciepts tab.

The relevant transaction activity can be viewed from the activity tab of the relevant account in the bank module.

15. Cash Transfers (account to account)

First you need to change the program date according to the transaction date.

The next step is to go to the bank module and select the relevant account.

After selecting the relevant bank account, select the transfer tab.

Then select the relevant transfer account and type the relevant amount in the payment value.

Since the programe date was changed first, there is no need to change the date here. The date is displayed automatically.

After you save the transaction on transfer tab.

The relevant transaction activity can be viewed from the activity tab of the relevant account in the bank module.

16. Recurring Entries (receipt income monthly)

First you need to change the program date according to the transaction start date.
The next step is to go to the bank module and select the relevant account.

After selecting the relevant bank account, select the recurring tab.

After selecting the Add to record new recurring entries.

Then selected add button fill the relevent details. Such as relevent accounts(recurring entry from- to), nature of the premium( month, week, days).

Then fill the relevant transfer account and type the relevant amount in the net amount.

After you save the transaction on recurring tab give the ok option and you need update this transaction.

Then you need to change programme date in last of the date in account year and you go to relevent recurring entries and give the option process.

The relevant transaction activity can be update from the recurring entries as a finished of the relevant account in the recurring tab.

17. Accruals

Go to nominal and accrual.
Select the account related to the Accrual and enter the relevant details, department. Then Accrual account selected automatically. You should enter total accrual of year. Another you want to enter amount of months of that. Monthly amount is displayed automatically.
Now you save your transaction.

18. Month End

As a company it’s important to know what your monthly turnover values are and be confident that this reports correctly. The month end option clears the monthly turnover values on your records to ensure you only see the current month turnover.

If you have set up any prepayments, accruals or fixed assets with depreciation, to ensure your financial information is accurate you can also use the month end option to post the journals required for these.

To run the Month End

1^st step – You must change the program date to month end date

(ex: 2019/1/31)

2^nd step-

3^rd step- you must run month end for every months.
4^th step- After the 12 month ends ran, you must need to back up the file to the folder again.

19. Year End

1^st step – You must change the program date to Year end date
(ex: 2019/12/31)
2^nd step-

3^rd step-. After the year end ran, you must need to back up the file to the folder again.

20.Year End Report

After the year end ran, as part of the year end process, you must run and get following reports.

Profit and Loss report - Shows the value for sales, direct expenses including cost of sales, and overheads for the financial year. It also shows the resulting gross and net profit or loss.

Balance Sheet report - Details your company’s assets, liabilities and equity.

Trial Balance - Run this report for the This Financial Year period. This also shows the balance on each account and includes values from before the first day as follows:

· Balance sheet accounts – Values prior to your financial year start date are brought forward and included in the overall total.

· Profit and loss accounts – All values for these accounts prior to the financial year start date appear against Profit and Loss Account.

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Computer Based Accounting

ACKNOWLEDGEMENT

1. Introduction

5. Setting up Supplier Records

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