Whats New
January 2009
Batch Processing
A recent innovation in the continuing development of Diamond Discovery is the introduction of Batch postings. This new facility, which applies to both Sales and Purchase, allows you to enter a batch of Invoices or Credit Notes just using the keyboard for fast data entry. When the data entry is complete, the transactions can be viewed and if necessary amended before being posted to the relevant ledger.
Additional features allow you to easily switch between posting VAT inclusive invoices, when the VAT element is automatically calculated or the more usual Nett plus VAT format. There is also the facility to switch between Invoice and Credit Note posting. These features greatly enhance the software and speeds up the invoice posting process considerably.
Stock on the Balance Sheet
Many businesses operate stock systems, for example if they buy goods for resale or manufacturing processes. If your business operates this kind of system, then to calculate an accurate profit you must ensure the cost of the goods sold is included in the appropriate Management Reports.
The Profit & Loss Report is adjusted for each Management Report by the posting of opening and closing stock journals. These journals will adjust the cost of your purchases by the value of stock remaining at the end of the period.
If you do not post opening and closing stock journals, the Cost of Sales on the Profit and Loss Report would include the cost of your purchases, and not take unsold stock into account. To produce an accurate profit figure the cost of sales must be calculated. The cost of sales value can be calculated using the following formula:
Opening Stock + Purchases - Closing Stock = "Cost of Goods Sold" or "Cost of Sales"
This exciting new feature automates Opening and Closing stock journals each time any of the management reports are run. Control accounts need to be identified in the Nominal Ledger parameters for both the Current Assets Stock account and also a profit and loss account for the Stock Adjustment figure.
Having activated the feature in the Stock parameters, the system will now post a temporary journal each time the Trial Balance or Balance Sheet report is run. As it will be utilising actual stock values, the report will be as up to date as the last transaction posted.
At Nominal Period End the system will post actual reversing journals – to reflect the closing stock value for the old period and the opening stock value for the new period.
Return to category: Newsletter: Brilliant News - January 2009