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Accounts Settings

To run the Accounting module of Loan Performer you have define the start of the financial year and make several settings.

Note that you will not be able to post any transactions to the GL unless the date for the start of the financial year has been set.

How to make configurations for accounting

To configure accounting you go to System/Configuration/Accounting/Configuration Accounting and screen will be displayed as follows:

• Format Chart of Accounts: Select from the drop down list the format for the Chart of Accounts that you are going to use. By default Loan Performer uses the "UK/US" format.

Note that you can only change the Chart of Accounts format if no booking have been made into General Ledger. The change is irreversible and its advisable to take a backup of your database before the switch. If you are a network user, please make sure that at the moment of changing the format you have exclusive access to Loan Performer, i.e. you are the only user logged into the program. After changing the Chart of Accounts format you must recreate the links for the booking of financial transactions to the General Ledger on all relevant Configuration pages.

• Lock first ...... Digits: Each GL account has a series of numbers designated to it in the Chart of Accounts. These numbers represent different account levels in the Chart of Accounts. Loan Performer gives you the option of setting and fixing the first digits so that they cannot be changed by users when creating/modifying GL accounts. Tick the checkbox and enter the first digits that should be fixed in the Chart of Accounts.

Note that if this option is not ticked the user will be able to create or modify the designated account numbers at any level.

• Lock Account Structure:If you check this option then you will not be able to create delete or modify any GL accounts in the Chart of Accounts. Therefore before you select this option you should ensure that you have set the standard Chart of Accounts for your organisation.

• Reverse provision balance to an income account (Year Closure):

• User is allowed to change this account?: Tick this checkbox to allow users select different double-entry accounts at the time of entering manual transactions in the Accounts->Manual Transactions menu. If the option is not activated, users are limited to single double-entry account defined at this point.
• Income Tax and VAT Number: Enter the income tax and VAT number of your organisation, This number will be quoted.
• Max width of the GL No: Use the scroll buttons to select the maximum number of digits that a GL account should have in the chart of accounts, e.g., "6". When creating GL accounts in the chart of Accounts, you will not be able to enter a digits than specified here.
• Width of the cross reference code: This is the maximum number of digits cross reference codes will have.
• Reset: You can delete the entire default Chart of Accounts by pressing the Reset button and create or import your own Chart of Accounts.
• Start of Financial Year: Enter the starting date of the financial year into this textbox, "01/01/2012".

Please note that after you have entered and saved the start of the financial year you will not be able to enter transactions that have dates before the start of the financial year to the General Ledger, so put this date as early as the first transaction.       As long as the "Start of Financial Year" field is empty, no automatic bookings for the savings, shares and loan transactions are made.

• Accumulated Profit & Losses Account: This is a General Ledger (Equity) account where Loan Performer books the amount of profit/ loss at the end of the financial year. The default LPF account for this is, "311010 -Accumulated Surpluses and Deficits", however you can select another account from the drop down list or define a new one by clicking on the New GL Account button.
• GL Account for Opening Balances: From the drop down select the GL that will be used to balance off opening balances at Accounts/Transactions/GL Opening Balances

• Double Entry Account:: This is a General Ledger account that is used for balancing the manual transactions at Accounts/Gl Transactions/Transactions. Normally it is a Cash or Bank account. You can use a default LPF account, "127010 - Cash", or you can select another account from the drop down list.
• Default Cheque Account: Here you can select the cheque account that will be used as a Suspense Cheque Account for your cheque transactions. You can use a default LPF account "127030 - Suspense Account Cheques", or you can select another account from the drop down list .
• The entry of Assets should be booked to the GL:If you select this option then at the time of registering the asset at Accounts/Assets/Assets Register/Posting you will be presented with an option to pay for the asset. If you select that option then you will have the GL against which the asset will be booked and after saving the asset will be booked to the GL accounts. If you don't select this option then to you will have to manually post the assets to the relevant GL accounts after they have been registered in the Assets Register.

• Set Multi-Donor Budgeting: Mark this checkbox if your organization has more than one source of funding and you want to create budgets and generate budget reports for each of them separately.
• Recalculate Accrued Interest for Flat Rate Loans: If you select this option, Loan Performer will calculate accrued interest for all loan including Flat Rate Loans at Accounting/Calculate Accrued interest. However if this is not ticked the recalculation will not include the flat rate loans. You will also have to select the option Interest calculation in days under Loans/Loan Application/Loan Entry Part 1 for accrued interest to on flat rate loans to be calculated in days.
• Also automatic transactions can be modified before day closure :By default Loan Performer is configured not to allow modification of automatic transactions. So when you are modifying manual transactions at Accounts->GL Transactions->Add/Modify Transactions, the Modify Transaction button will appear inactive. However if you wish to be able to modify these transactions then you tick this option and then the modify transaction button will become active for you to carry out the modification.

Note that the modification of manual and automatic transactions will only be possible before you run the day-closure. Once the day-closure is done, transactions cannot be modified any more unless you open the closed period at Tools->Open Closed Period.

• Reject General Ledger and sub ledger transactions in closed periods:If you select this option, you will not be able to modify the General Ledger and Automatic transactions in the closed periods. If the option is not ticked, you will be able to update a transaction sub-account, e.g., "Savings" This change will only affect the sub ledgers and not the GL. This means that the transaction will remain on one side, i.e., on the subledger level.

Note that if you choose to tick the above option then the following three options for updating sub ledgers will be made inactive.

• Update of sub ledgers before last Day-Closure allowed:By default you can not update the subledgers in a closed period. However under certain conditions you may wish to do so. Tick this option to be able to update the subledgers in the closed period. Note also that this modification will be made under the modify transaction menu found in the appropriate Loan Performer modules, e.g. ,Modify Client Reg Fee, Modify Shares Transactions , Modify Time Deposits, Modify Standing Order, etc.
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• Update of sub ledgers in closed financial months allowed: By default you can not update the sub ledgers in a closed period. However under certain conditions you may wish to do so. Tick this option to be able to update the sub ledgers in the closed period. Note also that this modification will be made under the modify transaction menu found in the appropriate Loan Performer modules, e.g. ,Modify Client Reg Fee, Modify Shares Transactions , Modify Time Deposits, Modify Standing Order, etc.
• Update of sub ledgers in closed financial years allowed: By default you can not update the sub ledgers in a closed period. However under certain conditions you may wish to do so. Tick this option to be able to update the sub ledgers in the closed period. Note also that this modification will be made under the modify transaction menu found in the appropriate Loan Performer modules, e.g. ,Modify Client Reg Fee, Modify Shares Transactions , Modify Time Deposits, Modify Standing Order, etc.
• Put original transaction date for GL booking of deletion of transactions: Tick this option if you want the system to record the date for the deletion of a transaction as the original date for the transaction. If you don't activate this option then the date for the deletion of the transaction will be the date when the deletion actually takes place.
• Modified/Deleted Transactions will be booked on the next available day if period closed: Tick this option if you want the date for the deletion/modification of transactions to be booked onto the next available day after the period closure. However if this option is left unchecked then the deletion/modification of transactions in the closed period will not be possible.
• Exclude manual transactions that are not approved: If you select this option then the manual transactions that are not approved will not appear in the various financial reports at Accounts->Financial Reports. However if this option is left unchecked then both the approved and unapproved transactions will appear in the financial reports. (See Approve manual transactions).

You can click on the Print command button to view\print the configurations for accounting and keep them for future reference.

Management fees are fees paid to professionals entrusted with managing investments on a client's behalf. Typical management fees are taken as a percentage of the total assets under management.

• Management fees GL account: Ideally management fee is calculated as a percentage of the fund's net asset value (the total of the investors' capital accounts) and /or profits at the time when the fee becomes payable. From the drop down select the GL account that the management fees amount will be booked e.g. "440115".

• Withholding tax on Management fees: From the drop down select the GL account that the Withholding tax on Management fees will be booked e.g. "240012".

• Management fees Collection account: From the drop down, select the GL account where Management fees collection will be booked e.g. "240013".

• Note: Management fees Collection account will have the net amount of Management fees less the withholding tax.

• Management fees (%): Enter here the Percentage of the management fee to be computed from the fund's net asset value /or profits e.g. "10". This percentage will be used by the system in calculating the management fees under Accounts/Pay Management fees
• Withholding tax on Management fees(%): Enter here the Percentage of Withholding tax to be computed from Management fees e.g. "18". This percentage will be used by the system in calculating the Withholding tax under Accounts/Pay Management fees

Click on the Save button to save the settings and on the Close button to exit.

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