Accounting

Period-End Closing

Monthly Closing Checklist

1. Reconcile All Bank Accounts - Match every bank statement line. Book balance should equal bank balance.
2. Reconcile AR/AP - Match all payments to invoices. Unreconciled items should be investigated.
3. Verify Tax Report - Ensure tax amounts match invoices/bills posted this period.
4. Review Trial Balance - Check for unbalanced entries, suspense accounts, or unusual balances.
5. Depreciation - Run depreciation entries for fixed assets.
6. Deferred Revenue/Expenses - Post deferral entries if using this feature.
7. Adjusting Entries - Post accruals, prepayments, and corrections in the Miscellaneous journal.
8. Generate Financial Reports - P&L, Balance Sheet, Cash Flow. Review with management.
9. Lock the Period - Set lock dates to prevent changes (see below).

Lock Dates

Lock dates prevent posting entries in closed periods. Set in Accounting > Configuration > Settings → "Lock Dates" section.

• Fiscal Year Lock Date - No changes allowed before this date for any user.
• Period Lock Date - No changes allowed before this date for non-accountant users. Accountants still have access.
• Journal-Specific Lock Dates - Set different dates per journal.

Fiscal Year-End Closing

1. After the year-end P&L is finalised, post closing entries:

• Zero out temporary accounts (revenue, expenses).
• Transfer net profit/loss to Retained Earnings.

Audit Trail

Accounting > Reporting > Audit Trail shows every posted entry with:

• Entry number (sequential).
• Date and time posted.
• User who posted.
• IP address.
• Journal and reference.

Regularly review the audit trail to ensure data integrity. Export for external auditors.

Best Practices

• Close each month within 10 business days of month-end.
• Lock periods promptly to prevent accidental changes.
• Run the Trial Balance before and after closing to verify accuracy.
• Maintain a closing checklist document and track completion.
• Use the chatter on journal entries to document adjustments for future reference.

Trial Balance

Go to Accounting > Reporting > Trial Balance. Lists every account with its debit/credit balance at a given date. Drill down into any account to see individual journal items.

General Ledger

Go to Accounting > Reporting > General Ledger. Shows all journal entries sorted by account and date. Complete transaction history. Filter by journal, account, partner, date range. Export for auditors.

Other Key Reports

Recent Reporting Improvements

• Report Preview - See report data before generating PDF.
• Inline Export - Export to Excel directly from report view without going through a dialog.
• Multi-Company Consolidation - Combine financial reports across multiple companies in a single view (Enterprise).

Balance Sheet

Go to Accounting > Reporting > Balance Sheet. Shows the company's financial position at a specific date.

Sections

• Assets: Current (Cash, AR, Inventory) and Non-Current (Fixed Assets, Intangibles).
• Liabilities: Current (AP, Accrued Expenses, Short-term Loans) and Non-Current (Long-term Debt, Deferred Revenue).
• Equity: Capital, Retained Earnings, Current Year Profit/Loss.
• Total Assets = Total Liabilities + Equity - Must balance.

Customisation

• All customisations from P&L apply (date range, compare, group by, export).
• The Balance Sheet is typically run on the last day of the reporting period.
• Use Comparison Mode to see period-over-period changes in assets/liabilities.

Profit & Loss (Income Statement)

Go to Accounting > Reporting > Profit & Loss. Shows revenue, COGS, gross profit, operating expenses, and net profit for the selected period.

Customisation Options

• Date Range - Current month, quarter, year, or custom.
• Compare Periods - Show previous period, previous year, or budget.
• Columns - Actual, Budget, Previous Year, Variance.
• Group By - Account group, month, quarter.
• Hierarchy - Expand/collapse account groups to drill into detail.
• Export - Print PDF or export to Excel/CSV.

Key Line Items

• Revenue - Sales income from products and services.
• Cost of Goods Sold - Direct costs of products sold.
• Gross Profit - Revenue minus COGS.
• Operating Expenses - Salaries, rent, utilities, marketing, depreciation.
• Operating Profit (EBIT) - Gross profit minus operating expenses.
• Other Income/Expenses - Interest, exchange gains/losses, tax.
• Net Profit - The bottom line.

Budgets in Quickenerp

Create budgets to plan and monitor income/expenses against actuals. Go to Accounting > Configuration > Budgets.

Creating a Budget

1. Click Create.
2. Name - "FY2026 Budget", "Q1 Marketing Budget".
3. Period - Select date range (Jan 1 - Dec 31).
4. Budget Lines - Add each account's planned amount per period:

• Account (e.g. "Sales Revenue - Products").
• Planned Amount (e.g. ,000).
• Period: Monthly, Quarterly, or Yearly distribution. Quickenerp can spread evenly or by custom amounts per month.

Monitoring Budgets

• Open the budget → see a comparison table: Account, Planned, Actual, % Achieved, Remaining.
• Pivot View - Switch to pivot to compare multiple accounts side by side.
• Graph View - Bar chart showing planned vs actual per month.
• Budget Alerts - Set a percentage threshold. When actuals exceed X% of the budget, a notification is sent.
• Budgets can be viewed in the Profit & Loss report by enabling "Show Budgets".

Best Practices

• Create separate budgets for revenue and expenses.
• Use monthly periods for tracking, with annual totals.
• Review budget vs actual monthly in management meetings.
• Create revised budgets mid-year if circumstances change significantly.

Multi-Currency in Quickenerp

Enable multi-currency in Settings to invoice and pay in foreign currencies. Go to Accounting > Configuration > Settings → "Multi-Currencies" section.

Setting Up Currencies

1. Go to General Settings > Currencies → Add currencies.
2. Quickenerp auto-updates exchange rates daily (from a free provider).
3. To update rates manually: Currencies → click a currency → "Update Rate Now".
4. Set Rate Providers: European Central Bank, Yahoo Finance, or custom.

Multi-Currency Transaction Flow

1. Create a price list in EUR → assign to a European customer.
2. Create a quotation/invoice in EUR. Prices use the EUR price list.
3. Quickenerp shows both the EUR total and the company currency equivalent (if different).
4. Exchange rate is locked at invoice creation time.
5. When the customer pays in EUR, the payment is recorded in EUR.
6. Exchange gain/loss is calculated and posted automatically on reconciliation.

Exchange Gain/Loss

• Recorded when the exchange rate at payment differs from the rate at invoice creation.
• Posted to a "Exchange Gain" or "Exchange Loss" account.
• Configure these accounts in Settings → "Exchange Gain/Loss Account".
• Unrealised gains/losses are computed at period-end (manual process).

Multi-Currency Bank Accounts

Create separate bank journals for each currency: "USD Bank", "EUR Bank", "GBP Bank". Each journal has its own currency and bank account.

Fiscal Positions

Fiscal positions automatically map taxes and accounts based on the customer/vendor country. Essential for international trade and multi-jurisdiction tax compliance.

Common Use Cases

• Intra-EU Trade - B2B sales to another EU country: apply 0% VAT (reverse charge).
• Exports - Sales outside the EU: zero-rated with a fiscal position.
• Country-Specific Taxes - Different VAT rates for different states in India or UAE.
• Tax Exempt Customers - NGOs, government entities: map taxable products to tax-exempt accounts.

Creating a Fiscal Position

1. Go to Accounting > Configuration > Fiscal Positions → Create.
2. Name: e.g. "EU Intra-Community (B2B)".
3. Country Group: "European Union" (or specific countries).
4. If country group is empty, the position applies to all countries not covered by more specific positions.
5. Tax Mapping tab: Map "VAT 20% (Sale)" → "VAT 0% (Intra-EU)".
6. Account Mapping tab: Optionally map revenue accounts.
7. Save. The position is auto-detected when creating invoices for customers in the target country.

Fiscal Position Detection Order

Quickenerp applies the first matching fiscal position based on:

1. Exact country match.
2. Country group match.
3. Default position (no country set).

Taxes in Quickenerp

Quickenerp supports sales tax, VAT, GST, and withholding tax. Go to Accounting > Configuration > Taxes.

Tax Fields Explained

Creating a Tax - Step by Step

1. Go to Taxes → Create.
2. Name: "VAT 20% (Sale)".
3. Tax Type: Sales.
4. Amount: 20%, Computation: Percentage of Price.
5. Set Distribution: The tax amount is posted to a Tax Liability account (e.g. "VAT Collected").
6. Set Included in Price if needed.
7. Save.

Tax Groups

Tax groups aggregate related taxes. For example, a "Sales Tax Group" containing VAT 5%, 12%, and 20%. Reports can show totals per group.

Tax Reports

Go to Accounting > Reporting > Tax Report. This shows:

• Total sales per tax rate.
• Total purchases per tax rate.
• Net tax payable/receivable (output tax - input tax).
• Export for VAT/GST filing.

Withholding Tax

Configure in Taxes → Check "Withholding Tax". Apply on invoices where tax must be withheld at source (e.g. contractor payments). The net payment is reduced by the withholding amount.

Bank Reconciliation

Reconciliation matches bank statement lines against accounting entries. This ensures your books match the bank's records.

Manual Reconciliation

1. Open the Bank Journal → Reconcile button.
2. The reconciliation view shows:

• Left: Statement lines (from bank import or manual entry).
• Right: Matching journal items (invoices, payments, expenses).

Auto-Reconciliation

Quickenerp can auto-reconcile when statement lines match open entries exactly:

• Go to the Bank Statement → click Auto Reconcile.
• Quickenerp matches by: Partner name, amount, reference, or communication.
• Matches are applied automatically. Unmatched lines remain for manual handling.
• Auto-reconcile is useful when you have many small transactions (e.g. eCommerce payments).

Reconciliation Models

Quickenerp can learn from your reconciliations. After reconciling a few lines manually, it suggests the same mapping for similar future transactions. These are called Reconciliation Models.

• Example: Bank statement line with label "TRANSFER FROM JOHN" → always match to invoice from customer John.
• Example: Label "PAYPAL FEES" → always book to "Bank Charges" expense account.
• Go to Accounting → Configuration → Reconciliation Models to manage.

Reconciliation Reports

• Reconciliation Status - Each journal shows a mini-chart of reconciled vs unreconciled amounts.
• Aged Receivables/Payables - Show unreconciled invoices by age.
• Report Periodically - Reconcile at least monthly to keep financial reports accurate.

Recent Reconciliation Improvements

• AI-Powered Matching - Machine learning suggests reconciliation matches based on historical patterns.
• Batch Reconciliation - Reconcile multiple bank statements at once.
• Real-Time Balance Indicator - Shows book balance vs bank balance during reconciliation.

Bank Account Setup

Go to Accounting > Configuration > Journals → Create a journal of type "Bank".

Setting Up a Bank Journal

1. Name: e.g. "Main Checking Account".
2. Type: Bank.
3. Short Code: e.g. "BNK".
4. Default Account: Select the bank account from the chart of accounts.
5. Currency: Leave blank for company currency, or set to EUR/USD for foreign accounts.
6. Bank Feeds: Configure automatic bank statement import (see below).
7. Save.

Bank Statement Import

Quickenerp supports importing bank statements in multiple formats:

• CODA - Belgian format.
• CSV/Excel - Generic format with column mapping.
• OFX/QFX - Open Financial Exchange.
• CAMT.053 - ISO 20022 XML bank statement.
• SAP - SAP bank statement format.
• Auto-Sync (PAIN) - Direct API connection with supported banks (via third-party connectors).

Importing a Bank Statement

1. Go to the Bank Journal → click Statements → Import.
2. Select your file (CSV, OFX, etc.).
3. Map columns: Date, Label, Debit, Credit, Balance. Quickenerp auto-detects common formats.
4. Click Import. The statement appears as a new bank statement.
5. Each line becomes a statement line ready for reconciliation.

Recording Manual Bank Transactions

To record a bank transaction without a statement:

1. Open the Bank Journal → click Add a Line.
2. Enter date, label, debit or credit amount.
3. Save. The line appears in the bank statement for reconciliation.

Vendor Bills

Vendor bills record money you owe to suppliers. Go to Accounting > Vendors > Bills.

Bill Form Fields

• Vendor - Select supplier. Pre-fills addresses, currency, payment terms.
• Bill Date - Date on the vendor's invoice.
• Due Date - Auto-calculated from payment terms.
• Vendor Reference - The vendor's invoice number. Important for matching.
• Bill Lines - Products/services purchased. Each line: description, quantity, unit price, taxes, accounts.
• Journal - Defaults to Purchases journal.
• Fiscal Position - Auto-detected for correct tax treatment.

Three-Way Matching

When integrated with Purchases and Inventory, Quickenerp supports three-way matching:

1. Purchase Order - What was ordered.
2. Receipt - What was received (inventory validation).
3. Bill - What was invoiced.

Quickenerp flags discrepancies: billed quantity vs received quantity, billed price vs PO price. Enabled in Settings → "Three-Way Matching".

Creating a Bill

1. Go to Bills → Create.
2. Select vendor. Verify dates.
3. Enter vendor reference (their invoice number).
4. Add lines. For tracked products, enter quantities received.
5. If a purchase order exists, click "Add from Purchase Order" to auto-fill lines.
6. Click Confirm to post the bill.

Vendor Credit Notes

Create from a posted bill: Open bill → Add Credit Note. Same process as customer credit notes but in reverse - reduces AP and reverses the expense.

Paying Bills

1. Go to Accounting → Vendors → Payments → Create.
2. Select vendor, payment method, bank journal, amount.
3. Optionally select specific bills to pay (full or partial).
4. Validate. Payment is posted and reconciled with the bills.

Payment Terms

Payment terms define when and how invoices should be paid. Go to Accounting > Configuration > Payment Terms.

Common Payment Term Types

Customer Payment Process

1. Invoice posted → customer is sent invoice.
2. Customer pays (bank transfer, check, card, portal payment).
3. Go to Accounting > Customers > Payments → Create.
4. Select customer, payment amount, payment method, bank journal.
5. Click Validate - payment is posted.
6. Reconcile the payment with the invoice(s) it covers.

Follow-up & Collections

Quickenerp can send automated follow-up emails for overdue invoices:

• Configure Follow-up Levels in Accounting → Configuration → Follow-up Levels.
• Each level defines: days overdue, email template, and action (e.g. add interest, send final notice).
• Quickenerp auto-sends emails based on the schedule.
• View overdue invoices in Reporting → Aged Receivables.