Company Setup
Introduction
All the settings pertaining to the Company are managed and controlled from the Company Master screen.
A company is a legal entity made up of an association of people for carrying on a commercial or industrial enterprise.
In iVendNext, the first Company is created when an iVendNext account is set up. For each Company, you can set a domain as manufacturing, retail, or services depending on the nature of your business activity.
If you have more than one company, you can add them from: Home > Accounting > Company
Steps to create a new Company
The steps to create a new Company are explained below:
Navigate to: Home > Accounting. Then under the Accounting Masters section click on the Company shortcut. This will open the New Company screen.
Enter the name, abbreviation, default currency, and country for the company. These fields are mandatory.
Once you have filled in the required information including the mandatory field click the Save button, to save the company data and exit the screen.
The abbreviation for your company is created by default. For example, LT for Looney Tunes. The abbreviation helps in differentiating assets of one company from another.
The abbreviation also appears in various accounts, cost centers, taxes templates, warehouse, etc, of your company.
You can also attach a company logo and add a description for the company.
New Company Screen Explained
The New Company Screen is split into the following sections. Each section contains information specific to the section it corresponds to.
Details
Accounts
Buying and Selling
HR and Payroll
POS Invoice Posting Settings
The Details Section
This section of the New Company screen includes basic information about the company. For example, Company Name, Company Abbreviation, Default Currency, etc.
Company
Specify the Company Name. In iVendNext, the first Company is created when an iVendNext account is set up.
Abbr
The abbreviation for your company is created by default. For example, LT for Looney Tunes. The abbreviation helps in differentiating assets of one company from another. In case it doesn’t you can specify the Company Abbreviation, if any.
Default Currency
Select the Default Currency from the drop down list or choose to create a new Default Currency by clicking on the Create a new Currency option.
Country
Select the Country from the drop down list or choose to create a new Country by clicking on the Create a new Country option.
Is Group
Check this box if you want this Company to be the parent Company.
Default Holiday List
Select the Default Holiday List from the drop down list or choose to create a new Holiday List by clicking on the Create a new Holiday List option.
Default Letterhead
Select the Default Letterhead from the drop down list or choose to create a new Letterhead by clicking on the Create a new Letterhead option.
Tax ID
Specify the Tax ID.
Domain
The domain of work the company is into. Eg: manufacturing, services, etc. Choose one when setting up your account.
Date of Establishment
Select the Date of Establishment Date from the calendar pop up screen. This is the date when the Company came into being.
Parent Company
If this is a child company, set the parent from this field i.e., select a group company this company belongs to. If a parent company is set, the chart of accounts for the new company you're creating will be created based on the selected parent company.
Registration Details
Specify the Registration details of the company. Here you can save various tax/cheque/bank numbers for reference.
The Accounts Section
This section of the New Company screen includes information about the various company accounts. For example, Payment Account, Discount Account, etc.
Create Chart Of Accounts Based On
Select the Create Chart Of Accounts Based On from the drop down list. For each Company, the master for Chart of Accounts is maintained separately. This allows you to maintain separate accounting for each company as per the legal requirements. You can also import the chart of accounts using the Charts Of Accounts Importer.
iVendNext has a localized Chart of Accounts readily available for some countries. When creating a new Company, you can choose to set up the Chart of Account for it from one of the following options.
Standard Chart of Accounts
Based on Existing Company's Chart of Account
Note that, if the Parent Company is selected when creating a new Company, the Chart of Accounts will be created based on the existing Parent Company.
Some of the following accounts will be set by default when you create a new company, others can be created. The accounts can be seen in the Chart of Accounts. These values can be changed later on if needed.
Default Bank Account
Default Cash Account
Default Receivable Account
Round Off Account
Round Off Cost Center
Write Off Account
Discount Allowed Account
Discount Received Account
Exchange Gain / Loss Account
Unrealized Exchange Gain/Loss Account
Default Payable Account
Default Employee Advance Account
Default Cost of Goods Sold Account
Default Income Account
Default Deferred Revenue Account
Default Deferred Expense Account
Default Payroll Payable Account
Default Expense Claim Payable Account
Default Cost Center
Credit Limit
Default Payment Terms Template
Round Off Account
Select the Round Off Account from the drop down list or choose to create a new Round Off Account by clicking on the create a new Account option.
Round Off Cost Center Account
Select the Round Off Cost Center from the drop down list or choose to create a new Round Off Cost Center by clicking on the create a new Cost Center option.
Write Off Account
Select the Write Off Account from the drop down list or choose to create a new Write Off Account by clicking on the create a new Account option.
Exchange Gain / Loss Account
Select the Exchange Gain / Loss Account from the drop down list or choose to create a new Exchange Gain / Loss Account by clicking on the create a new Account option.
Unrealized Exchange Gain/Loss Account
Select the Unrealized Exchange Gain/Loss Account from the drop down list or choose to create a new Unrealized Exchange Gain/Loss Account by clicking on the create a new Account option.
Unrealized Profit / Loss Account
Select the Unrealized Profit / Loss Account from the drop down list or choose to create a new Unrealized Profit / Loss Account by clicking on the create a new Account option.
Default Payment Discount Account
Select the Default Payment Discount Account from the drop down list or choose to create a new Default Payment Discount Account by clicking on the create a new Account option.
Default Payment Terms Template
Select the Default Payment Terms Template from the drop down list or choose to create a new Default Payment Terms Template by clicking on the create a new Template option.
Default Finance Book
Select the Default Finance Book from the drop down list or choose to create a new Default Finance Book by clicking on the create a new Default Finance Book option.
Book Advance Payments in Separate Party Account
Check this box to record - Advances Received in a Liability Account instead of the Asset Account AND Advances Paid in an Asset Account instead of the Liability Account
Default Advance Received Account
This field is activated only when the "Book Advance Payments in Separate Party Account" checkbox is checked.
Default Advance Paid Account
This field is activated only when the "Book Advance Payments in Separate Party Account" checkbox is checked.
Auto Create Exchange Rate Revaluation
Check this box to automatically revaluate the currency exchange rate.
Frequency
Select the Frequency from the drop down list.
Submit ERR Journals?
Check this box to submit ERR journals.
Exception Budget Approver Role
Select the Exception Budget Approver Role from the drop down list or choose to create a new Exception Budget Approver Role by clicking on the create a new Role option.
Accumulated Depreciation Account
Select the Accumulated Depreciation Account from the drop down list or choose to create a new Accumulated Depreciation Account by clicking on the create a new Account option.
Depreciation Expense Account
Select the Depreciation Expense Account from the drop down list or choose to create a new Depreciation Expense Account by clicking on the create a new Account option.
Series for Asset Depreciation Entry (Journal Entry)
Specify a document number series for the Asset Depreciation Entry (Journal Entry).
Expenses Included In Asset Valuation
Select the account where you want to record the Expenses Included In Asset Valuation from the drop down list or choose to create a new account by clicking on the create a new Account option.
Gain/Loss Account on Asset Disposal
Select the account where you want to record the Gain/Loss Account on Asset Disposal from the drop down list or choose to create a new account.
Asset Depreciation Cost Center
Select the Asset Depreciation Cost Center from the drop down list or choose to create a new Asset Depreciation Cost Center by clicking the create a new account option.
Capital Work In Progress Account
Select the Capital Work In Progress Account from the drop down list or choose to create a new Capital Work In Progress Account by clicking on the create a new Account option.
Asset Received But Not Billed
Select the account where you want to record the Asset Received But Not Billed from the drop down list or choose to create a new account by clicking on the create a new Account option.
Basic Component
Select the Basic Component from the drop down list. Setting the default value in this section will help in Employee Tax Declaration calculations, especially for HRA exemption amount.
HRA Component
Select the HRA Component from the drop down list. Setting the default value in this section will help in Employee Tax Declaration calculations, especially for HRA exemption amount.
Arrear Component
Select the Arrear Component from the drop down list. Setting the default value in this section will help in Employee Tax Declaration calculations, especially for HRA exemption amount.
The Buying and Selling Section
This section of the New Company screen includes information related to buying and selling of items. For example, Default Buying Terms, Default Selling Terms, etc.
Default Buying Terms
Select the Default Buying Terms from the drop down list or choose to create new Default Buying Terms by clicking on the option create new Terms and Conditions option.
Monthly Sales Target
Defining and achieving sales goals/targets can help your company reach new goals and increase revenue. Specify the Monthly Sales Target in the company currency.
Total Monthly Sales
Defining and achieving sales goals/targets can help your company reach new goals and increase revenue.The value in this field will auto populate once transactions are made.
Default Selling Terms
Select the Default Selling Terms from the drop down list or choose to create new Default Selling Terms by clicking on the option create new Terms and Conditions option.
Default Warehouse for Sales Return
Select the Default Warehouse for Sales Return from the drop down list or choose to create a new Default Warehouse for Sales Return by clicking on the option create new Warehouse option. A Warehouse can be referred to as a "storage location" to store items. A Warehouse for Sales Return will store items that are returned from a sale.
The HR and Payroll Section
This section of the New Company screen includes information related to buying and selling of items. For example, Default Buying Terms, Default Selling Terms, etc.
Default Employee Advance Account
Select the Default Employee Advance Account from the drop down list or choose to create a new Default Employee Advance Account by clicking on the option create new Account option.
The POS Invoice Posting Settings Section
This section of the New Company screen includes information related to buying and selling of items. For example, Default Buying Terms, Default Selling Terms, etc.
One to One - Real Time Posting
Check this box to enable One to One-Real Time Posting. This will update the POS transaction in the ledger / finance books on a real time basis. A Finance Book is a book against which all the accounting entries are recorded. See: Finance Books
One to One - On Shift Closure
Check this box to enable One to One-On Shift Closure. This will update the POS transaction in the ledger / finance books on shift closure. A Finance Book is a book against which all the accounting entries are recorded. See: Finance Books
Rollup Posting - On Shift Closure
Check this box to enable Roll up posting-On Shift Closure. This will consolidate multiple sales to a single POS invoice or sales receipt and expenses to a single purchase or bill on shift closure. See: Finance Books