User_Manual_Accounting for FS-V01

ACCOUNTING MODULE
for FINANCIAL SERVICES

Table of Contents
Accounting module - General data
1. Necessary settings
2. Main working steps
3. Parameters definition
Accounting systems
Accounts classification
Chart of Accounts
Accounting periods
Accounting period status
VAT quota
VAT type
Opening balance
Entities and attributes
Analytic accounts layouts
Posting models definition
Reporting Currencies
Types of documents configuration statuses
Periodic Operations
Trial Balance
Special Accounting Reports
4. Accounting Notes
Accounting notes description
Excel Import of accounting notes
Duplication / Storno (Credit note) of an accounting note
5. Automatic booking
How is working the automatic posting
Accounting notes generation from primary documents
The screen of the accounting note for that document is presented. As have been described in the chapter: Accounting notes description
6. Accruals and deferrals
Definitions, configurations, and calculation
Calculation rules for Accruals and Deferrals
Charisma documents for Accruals and Deferrals Calculation
Main Charisma rules for Accruals and Deferrals Calculation
7. Provisions
Definitions of Provisions
Calculation of Provisions
8. Periodic operation
General presentation
Periodic operations generation / booking
Periodic Operations description
Income / Expense closing
Unearned interest and Storno unearned interest
Contract commitments
9. Period closing
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Closing of the month flow
10. Reports
Registers / Journals
Trial Balance
Special Accounting Reports
Operative reports
Accounting module - General data
The Accounting module gathers data from all the operational modules of the ERP system and integrates them in an accounting form. Regardless of the size, structure,
language, currency, or chart of accounts of the company, this module has the ability to provide centralized financial and accounting data, essential information about the
economic position of the company, about the evolution of the financial performance and results over time.
This module integrates information from all other modules of the application and offers information necessary to the management in order to analyses the previous
activity and for future actions.
All accounting operations are done in the system: editing bookings, follow-up of foreign currencies, automatic or manual counting, reports editing, journals, registers,
monthly trial balance, also balance sheet and P&L.
Among the most important characteristics of the accounting module, we can focus on:

Several accounting systems can be used (RAS, IAS…), any of them being native.
It can work simultaneously with several companies, part of a holding, or totally independent.
It can work in multi-currency (Leu, USD, Euro…) so that reports can be done in any of the chosen currencies.
The accounts from the chart of accounts can be detailed on several levels of subsidiaries in order to allow the efficient structuring of the information.
Counting can be made in automatic way, based on accounting models established initially by the client- in case of special and rare situations.
It can work simultaneously in 2 consecutive periods (months, years). Before closing a month, the system can already work in the following month. At the
beginning of the year, modifications applied to December can be made until the balance is ready.
The module has predefined legal reports and a part of the usual ones. The accounting reports are appropriate for the Romanian accounting system – Balance,
P&L account, as well as the international one- Balance Sheet, Cash, Flow, P&L.

Necessary settings

The main settings that have to be established before starting to use this module are the following:

Workstation configuration

Open General > General > Workstation configuration in order to establish the settings for the current workstation, which refer to selecting the default stock administration
unit – in the [Warehouse] tab, and the financial year for which the documents will be registered (in the [Accounting] tab).

Exchange rates

Entering the exchange rates is important if you operate documents in which different currencies are used. The value of the exchange rate has to be registered daily, for
each currency you are using, in General > General > Exchange rates.

Initialization parameters

In menu General > Administration > Initialization Parameters, the values of a series of parameters are established, for each module of the application. These parameters
are important in configuring the application so as to correspond to the necessities and peculiarities of each company. Among those referring to the accounting activity are
the following:

AccSystemId – the implicit accounting system

WorkCostCenter – indicates whether or not the cost centers are used in the accounting activities.

Main working steps

Within the first month of using the system, the following steps have to be completed:

1. Enter the chart of accounts

The chart of accounts may be defined after opening Accounting > Parameters definition > Chart of accounts. The application is implemented with a standard chart of
accounts included, which may and will be changed if necessary.
Two important functionalities exist:

a flag whether an account can be posted or not (to highlight which should not be used by the users anymore for posting),
and a 4-eyes principle check when having a new account set up.
 1. Initialize the balance of accounts

Use Accounting > Parameter's definition > Opening balance to enter the initial balance accounts.

1. Initialize the operational balance

The operational balance is initialized by registering the primary documents that constitute this balance, bearing as document date the end date of the month prior to the
date when the application started in live. For example, if the application 'Go Live' stage takes place in January, the primary documents for the operational initialization will
be operated with the date of 31st of December of the previous year. The operational balance is composed of:

Client and supplier balances: client/supplier invoices, client/supplier advances in balance

Employee expense accounts in balance
Initial bank accounts balance, as well as the initial balance in the cash office(s)
Initial Inventory
Fixed assets.

1. Check the balance of accounts and the operational balance

In the end, check if the balance accounts match the operational balance entered using primary documents. Specific reports exist for checking the corresponding data

1. Check the existing posting models

The application has initially preconfigured posting models, which may be modified if needed, by doing the following operations:

Complete the attributes for the posting models

The list of entities and attributes can be found in the Accounting > Parameters definition > Entities and attributes.

Create/modify the posting models

The posting models needed for the automatic accounting of the primary documents can be found in Accounting > Parameters definition > Posting models.
In a typical working month, these are the steps that have to be followed:

1. Register the primary documents of the current month

in all the application modules (Sales, Purchase, Finance, Warehouse, Fixed assets, etc.)

1. Account all the primary documents – in Accounting > Accounting notes from master documents

all primary documents created based on transactions which may be automatically accounted will be accounted.

1. Enter manual accounting notes (if necessary) in Accounting > Accounting notes

1. Check the accounting reports

When ready with the previous step, you may proceed to verify (in Accounting > Reports) the reports of interest: Trial balance, Sales ledger, Purchase ledger, Bank book,
Cash book, etc. Any possible error found has to be remediated, then the reports in question will be checked again.

1. Generate the VAT accounting notes (if and when applicable)

1. Execute the operations related to the closing of the accounting period – in Accounting > Parameters definition > Periodic operations:
Close the expense accounts
Close the income accounts
Close the VAT accounts.
Closing of other specific situations.

After these operations are executed, it is recommended to re-check the balance accounts
 1. The month may be now closed (from the accounting point of view) in Accounting > Parameters definition > Accounting period status:
Operational closing (documents may no longer be operated afterwards for this month)
Accounting closing (no more accounting notes may be operated).

Parameters definition

Accounting systems

Charisma allows the simultaneous use of several accounting systems: RAS, IAS, IFRS, USGAAP, etc. Each transaction/document will be assessed differently from the
accounting point of view, based on the models that are specific to each system. The initial configuration of the application allows you to obtain instant results in any of the
accounting systems used, in parallel
The accounting systems used by the application are registered in Accounting > Parameters definition > Accounting systems. At opening, the screen displays the accounting
systems already registered in the application. You may add new systems directly in the grid, using <Add>.

The implicit accounting system is determined by the AccSystemId initialization parameter.

Pressing the button you can define on which site/company the respective system is used

Accounts classification
The accounts are classified at Accounting- Defining Parameters- Accounts Classification. This classification refers to position within the chart of accounts:

Example how to use the accounts' classification:

Class: CLASS 5 = Treasure Accounts
Group: Group 51 = Bank accounts
Synthetic account gr. I: Account 512 – Current Bank Accounts
Synthetic account gr. II: Account 5121 – Current Bank Account in lei
Analytic Account: Account 5121.1 - Current Bank Account in lei- Bank 1
Any levels of Analytic account can be defined in the Chart of accounts.

Chart of Accounts

The chart of accounts is defined in Accounting > Parameters definition > Chart of Accounts in correspondence with a Fiscal year and an Accounting system. By default, the
chart of accounts corresponding to the implicit accounting system (indicated by the AccSystemId initialization parameter) is displayed:
The accounting system may be selected in the field with the same name in the upper part of the
screen, then filter to visualize the corresponding chart of accounts.
An existing chat of accounts look like (list mode):
Also, in the right area, can be seen several information about any selected account from the list:
The fields (details) for each account are described below, at the new account add.
In order to add a new account, click on the account that will be 'parent' to the new one and press

– the following upper window shows up:

The Accounting period and Accounting system fields display by default the fiscal year and the accounting system for which the chart has been defined. The following
information has to be filled in:

Symbol – enter the new account symbol

Name, Alternate name – the name of the new account
Parent account – displays by default the synthetic account selected as "parent" by the user
Level – indicates the level of classification for the new account
Currency – the base currency used by the account
Monetary – if checked, it indicates that the new account works with monetary values
Cost center – select this checkbox in case you want the new account to be associated to a cost center
Has Partner – if selected means any accounting note using the account must have a Partner for each operation (Client, Supplier, Bank, etc.)
Has Reference document - if selected means any accounting note using the account must have a Document reference for each operation (Contract, Invoice,
Payment Order, etc.)
Type – select the account type: Active, Passive or Bifunctional
Classification – select the classification for the new account (one level lower than the parent account)

On the lower area are 3 tabs:

Locations – it is a list of all locations on the same Charisma Database (different companies – as is the print screen above, or different business location of the
same company). Check the locations where the account may be used (is visible).
Properties – User defined fields with Code and Value
User visualization restriction - it is the area to select the user with rights for the account (mainly it is for user from accounting using different account for
different companies
Also, in the upper part of the screen are some buttons (including "New account" described already):

- pressed to save the new account.

- pressed to cancel of the input data

- delete the selected account

- close the window and go back to Accounting systems list

In the window of Accounting system lists are also existing some buttons:

Search – searching for an accounting system if there are several

Modify – Open the entire Chart of accounts for the selected System, giving the possibility to change some information
Print – Generate a report with the Chart of accounts to be printed
Check Structure - used for checking the structure of the chart of accounts (classification, level, etc.) for each account.
Export to Excel – the list of the accounts as presented in the Chart of accounts
Exit – close the window and go back to menu

In some implementation it is possible / necessary to validate an account. To do that is needed to select the item and click on the menu line Actions Validate account.

Four eyes principle is available in Chart of Accounts changes when validating and deleting the account.
An account has to be created/deleted/updated by the user role "Finance" and press save.
Validating or deleting must be done by another user than the user who created it.

Accounting periods
Open Accounting > Parameters definition > Accounting periods to define the accounting periods: the fiscal years and months. In the list mode screen, you may see the
accounting periods already defined in the system:

To add a new period, press <Add> and you will enter the edit screen shown below:

Enter the Name and the Fiscal year, check the Initial box only if this is the first year for accounting operations (the year for which you enter the opening balance). Select
the First day of the accounting period, then press the <Generate periods> button to generate the months of the fiscal year. When ready, <Save> the new record.

Accounting period status

A month in an accounting period may have one of the following states:

undefined – immediately after the periods are generated as explained in the preceding section
open – documents and accounting notes may be created
operational closed – documents may not be entered any longer
accounting closed - accounting notes may no longer be entered.

Open Accounting > Parameters definition > Accounting period status if you need to set the state of an accounting period. In the screen that opens in the list mode, press <S
earch> to get the list of fiscal years:
Select the year you are interested in and press <Modify> or double-click it to enter the edit screen presented below:

To change a period status from Undefined to Open, first select the month, then press <Open accounting>. In the following screen, select the accounting system in which
the period will be open, as well as the locations. By default, all the accounting systems and locations are selected:
Press <Modify> and you will notice as you return to the preceding screen, that the month state has changed to Open.
In order to close an accounting period (month) you will have to execute the following two steps in this order:

Close operational, so that primary documents cannot be entered any longer for the respective month. Only manual accounting notes may be operated, or
existing documents may be printed. To do that, select the month in the second area on the screen, then the location in the third section and press <Close
operational>:

A closed period may be re-opened using the button <Open operational>, placed to the right of <Close operational>.

Close accounting – means that neither primary documents, nor accounting notes may be operated in the system. A period may be closed from the accounting
point of view only if it is already closed operational. The procedure is similar to the one presented above. You will use the <Close accounting> button on the
same row of functional buttons:

This way, the month state will change to Closed. A Closed month may be re-opened by proceeding in reverse order: press first <Open accounting>, then <Open operational
>.
All the step for to Accounting Close of month are defined in the <Closing period configuration>

As can be seen, for each step it is defined a special SQL procedure.

A Closed month may also be set as Reported period after selecting it and pressing <Reported period>:
In the end, when all the months of the year have been closed from the accounting point of view, you may finally close the financial exercise using the last button in the
row (<Close financial exercise>):

VAT quota
The VAT quotas used in the application are defined in Accounting > Parameters definition > VAT quota. All the VAT types and associated percentages have to be added and
filled in directly in the grid:

The VAT quotas are used in the financial-accounting operations. It is necessary to use the proper VAT quotas in order to obtain correct Sales and Purchase Ledgers. These
two ledgers are obtained after the primary documents have been accounted.
In order to confront the operational and the accounting information, there are two financial reports that may be used:

"Purchase invoices list (and other doc. with VAT)" and

"Sales invoices list (and other doc. with VAT)".

These reports display the information in a manner similar to the Sales/ Purchase Ledgers and show the operational information from primary documents, before the
accounting notes are generated.
It is very important for the Charisma Enterprise good running to correct understanding of VAT rate. These allow the correct follow-up of all bookings having VAT and
achieving the Sales Journal and Purchase Journal in conformity with the legal provisions. These 2 journals are obtained only after the primary documents have been
counted, and are achieved based on bookings, as it follows:

Meaning of the rates are:

VAT XX (19,20,24. Etc. – specific value per countries) is the main value used in majority of transactions (sales invoices, purchase invoices, etc.)
VAT YY (9,5, etc. – specific value per countries) is the special value used in majority of transactions (sales invoices, purchase invoices, etc.)
NEX - used in order to show up the "non-exigible VAT" (taxation and non-exigible VAT) transaction
NI – used in order to show up the "excepted from VAT" transaction
EXPD - for operations made abroad. In order to show up transaction "With deduction right"
EXPN - for operations made abroad. In order to show up transaction "Without deduction right"
SDD – in order to show up transaction « Excepted with deduction right"

VAT type

The VAT type screen is used for associating the VAT types to accounts in the chart of accounts of the company. To do that, the user has to select Accounting > Parameters
definition > VAT type and the screen presented below opens.
Select the VAT type on the left panel, then the Account on the right and press <Add> - the account will be displayed in the grid below, together with the associated VAT
type:

Opening balance
To enter the opening balance (starting values for Trial Balance at the moment of Charisma ERP activity starting.
Open Accounting > Parameters definition > Opening balance – the following screen opens:

The financial year you have declared as 'initial' in the Accounting > Parameters definition > Accounting periods option is displayed by default in the Financial exercise field.
In order to introduce the values for all the accounts in the initial balance, press <Add> on the upper line.
If it is necessary to correct any one of the already existing account's data, double click on that line will open the same window.
You will enter the edit window presented below, where the following fields appear already completed:

Accounting period – the initial financial year

Beginning of the year – starting of year (is just a check field)
Until month – displays by default « Beginning of the year ». In case you start working in another month of the year, you may select a different month. In such a
case, you may enter the initial balance at the beginning of the year, but you will have to also register the aggregate turnover for the period between the
beginning of the year and the actual start month, excluding the one selected in the Until month field.
Accounting system – displays the default accounting system and can be changed to enter data for each accounting systems

You will have to fill in the following data in the fields present in the upper part of the screen:

Site – select the location for which you enter the initial trial balance
Account symbol – manually selected from the predefined Chart of accounts or already selected in the previous screen account for which the balance is introduce
Currency – in which the values are expressed
Exchange rate – this field will be filled in for accounts in foreign currency

Opening balances – enter the initial Debit/Credit values in currency and

Equivalent in the base currency calculated initial Debit/Credit values in local/base currency using predefine exchange rate

Previous – enter the Debit/Credit aggregate turnover from the beginning of the year up to the month selected in the Until month field.
Equivalent in the base currency calculated initial Debit/Credit values in local/base currency using predefine exchange rate

If an account has initial balances in several currencies (for example EUR and USD), a record will be registered in the opening balance for each of these currencies. If the
currency exchange rate is entered in the Exchange rate field, the equivalent in the base currency will be automatically calculated.
In the lower part of the window, you may see four tab-pages:
 Detailed by partner (as can be seen in the picture above) - it is used for accounts that have to be detailed on partners. Use <Add> on the right side of the table
and enter the partner (in the first column) and the corresponding amount (the initial balance on each partner) directly in the grid.
Detailed by items - proceed similarly for the stock accounts, using this tab. In this case, the initial balance will be introduced per each item.
Drill down in documents - proceed similarly for the documents divided accounts, using this tab. In this case, the initial balance will be introduced per each
document. (sample - values for each contract for the same partner)
Detailed by accounting note - will be used in special situations, when a « combined » detailing is wanted (for instance, an account is detailed on partners, and for
each partner, it is detailed on items). The screen can be seen below.

The balance amounts entered on this screen may be visualized and verified using the "Account tag" report.

Entities and attributes

This screen is used for defining the entities and attributes necessary for the automatic accounting of primary documents. In order to be able to do the automatic
accounting, there are three steps that have to be carried out:

define the appropriate entities and attributes

organize the analytic accounts layouts based on the defined attributes
create the posting models for the automatic accounting using the attributes.

You may find below some examples of entities and corresponding attributes:

Entity Attributes

Partner PartnerCode, PartnerType, PartnerName, ExternalPartner ...

Item Storable, StockAccount, GoodsAccount, ExpenseAccount, IncomeAccount...

Collections/Payments PaymentNumber, PaymentPartnerId, InvoiceCurrencyId ...

Entities and attributes may be defined after opening Accounting > Parameters definition > Entities and attributes. When the screen opens, you may view the list of entities
on the left panel.
You can select from the list "Entity" any existing one and pressing Search you will obtain all the connected attributes.
To find a certain attribute, enter a sequence of its name in the Search field above the entities table, as in the image below, and press <Enter>. If the sequence exists, the
searched attribute will be localized in the right panel. If several attributes fulfill the condition, the first of them is found and prompted:

!! As can be seen on the upper area, are 2 buttons to "Import from XML" and "Export to XML" for simple used/reused Entities and Attributes
To configure an entity double click it and the edit screen opens.
To add a new attribute, press <Add> on the right side of the screen to modify it, press <Modify>. In the attribute edit screen check SQL to indicate that the desired value is
returned by the SQL syntax written below:

If the attribute is taken directly out of a field, check Direct from field, enter the name of the field to which it refers "AOL_NewContractAmount" as part of the Entity "Act
additional contract de leasing" in the example below):
Analytic accounts layouts
The analytic accounts layouts are defined in Accounting > Parameters definition > Analytic accounts layouts. The layouts show how the analytic accounts are created based
on the attributes defined on the Entities and attributes screen. These layouts will be subsequently used in configuring the posting models needed for the automatic
accounting of documents.
The list of existing accounts layouts is displayed when the Analytic accounts layouts screen opens:

Press <Add> to enter the layout edit screen as presented below:

In the upper part of the screen the following fields are displayed:

Accounting system – select from the predefined systems

Synthetic account – select from the chart of accounts the synthetic account for which you intend to create the layout
Code – enter the layout code in this field (indicating the account to which it is associated)
Name – the layout name for that layout (to analytic account)
Analytic account name – the name of the analytic account created
Separator – a symbol used to separate the levels of the analytic account within the account (usually, the point ".")
Synthetic display -
After filling in these fields in the header, you will have to add the details, represented by attributes, in the grid below, using <Add> on the right side of the screen. You will
enter the following detail edit screen, in which the attribute may be selected in the first field:

The Position and the Type are filled in automatically. <Close> this screen and as you will return to the layout edit screen, <Save> the layout.
The Layout field at the bottom of the screen shows the analytic account created based on the account symbol + the separator + the attribute value.

Posting models definition

The posting models may be defined after opening Accounting > Parameters definition > Posting models. The screen opens in the list mode, displaying all the posting
models defined in the system:

You may retrieve a certain posting model using the Document type or Transaction type fields in the upper part of the screen. For example, in the image below you may
see what posting models apply to the Sales invoice after entering the document type and filtering the data:

Each line represents a transaction for selected document. On selected line, the invoice is generated for early termination request and the posting model applies to a
number of sales documents (credit note, reverse sales invoice and normal sales invoice) and refers to a number of transactions. You may see the details of the posting
model after you select it in the list and press <Modify> or with double-click on it.
The following edit screen opens (for previous selected model):

In the upper part of the screen, you may see the name of the posting model and the accounting system to which it applies.
Check Accounting formulas grouping if you want to have the details grouped by account.
The screen is composed of five tabs:
 [Accounting formulas] – shown in the image above, it contains the formulas used in accounting the document

When this tab is selected several actions became available:

1. Add - a new accounting model detail window is open, and the model cam be entered
2. Modify – the accounting model detail pointed by mouse is open and can be modified
3. Delete – the accounting model detail pointed by mouse is deleted
4. Copy – the accounting model detail pointed by mouse is copied and can be used later
5. Add copy – the accounting model detail pointed by mouse is identical copied
6. Move up – the mouse move up to the next detail
7. Move down – the mouse move down to the next detail
8. Export to Excel – the entire model is exported in an excel file

[Transaction types] – contains the list of transactions that are accounted using the current posting model, together with the views created for this purpose:

Just Delete is available here.

[Variables] – variables may be entered on this tab, if needed for the accounting operations

[Tree lines] – you may see the tree structure of the posting model:

According to tree structure and Conditions, just some posting lines will apply to each Document detail

[Document verification] – Certain conditions may be configured to be verified when the automatic accounting is performed.
When the [Accounting formulas] tab is open, by pressing <Add> on the left side, you will be able to add a new formula to the posting model in the following edit screen:

There are 4 tabs, each one with information about the selected Posting model. See below the description of each tab:

Fields

The fields in this screen are as follows:

Conditions to be executed before – the field is filled in when a condition referring to the mode of accounting the document is imposed. The condition applies to
each detail of the document. If the result is True, the posting line is generated, if it is False, the posting is not generated
VAT quota – VAT quota used in accounting the document/document detail
Apply to – specifies whether the formula applies to the whole document or at detail level. Mainly it is at the level of Detail.
Position, Parent – select one of the two options if the model has a tree structure
Debit expression – enter an attribute or an expression that contains attributes, necessary for the debit account on the accounting note
Credit expression – enter an attribute or expression, necessary for the credit account for the current detail on the accounting note
Amount expression – enter an attribute specific to the document type, that provides the value of the accounting note detail, when accounting the document
Currency expression – this expression has to be entered in case of financial transactions that use currencies different from the base one, case in which the
exchange rate is important
Partner expression – select an attribute that gives the partner on the document
Exchange rate – usually the one existing on the document
Amount (base currency) – enter an attribute if the document contains amounts in foreign currencies
Accounting record explanation – enter an explanatory text referring to the respective detail significance on the accounting note (the text will appear on the
accounting note detail)
Item – attribute to select the specific Item connected to the posting entry (if it is the case)
Reference document – attribute to select the specific document connected to the posting entry. Can be in many cases the Leasing/Credit Contract
 Accounting journal – fill in this field in case you want the accounting notes resulted from applying this model to be included in a certain ledger (purchase journal,
sales journal, bank journal, etc.).
Delivery type – verry rare used for financial services transaction
Acquisition type – verry rare used for financial services transaction
Acquisition detail type – verry rare used for financial services transaction

Notice that the checkbox appears several times on the detail edit screen. If checked, it indicates that the amount is identical
for debit and credit on the resulted accounting note. If not, the debit and credit may differ.

User defined fields

As in almost all screen (documents) there are some properties (user defined fields) to be used for inputs different specific information. The information is totally defined
and controlled by the user.

Reference currencies

Any document is booked in the original currency and, if it is the case, in a reference currency.
The local, legal currency has always the code "25", and reference currency has another code. Here is "28", generally EUR

Description

Very rare used to have a description for the detail of accounting model

Reporting Currencies

There can be 1,2 or several currencies to be used at Accounting- Defining Parameters- Reporting Values: RON, EUR, USD, etc.
Currencies are shown after code and name

Types of documents configuration statuses

Statuses in which one document can be viewed in the window for automatic counting of documents are established here. E.g.: at payment order, only the status
"Validated" shows up, because only when validating it, the unpaid value is decreased.

Important: One type of document which is « counted » must have at least one status ticked in the column « Selected », so that this type of documents cannot be viewed in
the automatic counting screen, even if the transactions are included in the counting models.
After the accounting note is generated, automatically the status of the document is changed from Draft to Validated

Periodic Operations
Periodic Operations - General presentation

Periodic operations are accounting operations which occur systematically, at prearranged intervals of time, before the closing of the accounting period, such as: closing
revenues & expenses accounts, VAT closing.
Same month end operations are made at Accounting- Periodic Operations, after all bookings have been introduced on the respective month: incomes and revenues
accounts closing, VAT account's closing.

Periodic operation configuration

The way of closing revenues and expenses accounts, VAT closing and several others are configured at Accounting- Defining Parameters- Periodic Operations. The
configurations which were made will be later used at Accounting- Periodic Operations.
Open Accounting > Parameters definition > Periodic operations to define these recurring operations. The window for configuring the periodic operations opens in the list
mode:

To define a periodic operation press <Add> in the list mode screen and the following edit window opens:

The description of the screen is below:

In the upper part of the screen are general information:

Name – periodic operation name

Accounting system – accounting system to be used
Range - period of time between recurrences (daily, monthly, yearly),
Accounting recording date
Last day of the month – check, for Yes/No
Periodicity – choose from a list: Monthly, Quarterly, Yearly
Day – to be used for periodic accounts note
Month - to be used for periodic accounts note
Validity of the periodic operation (to be applied in that interval – generally for years)
From
Until
Default Number – number to be used for this operation in each month
Periodic operation group fields – operation to be grouped at generation
Automatic account note – check – if it is pressed, in the moment where the periodic operation is applied, automatically an accounting note for it is generated by
the software
When ready, <Save> the newly periodic operation will be added.
In the lower part of the screen are 2 tabs:

1. Accounting formulas – description of the way to generate data for the accounting of the operation:
No – of the operation
Debit data – Account, Currency, Sum (represented by calculation formula)
Credit data – Account, Currency, Sum (represented by calculation formula)
Others – Amount in base currency, Closing conditions, Conditions and Description

Pressing Add, Modify or on Double click of each line, a new window will open in order to enter all these necessary data

1. Source date
The source where necessary info is obtain can be selected in this tab:

Trial Balance

Types of trial balances to be used in the future normal operation are configured at Accounting- Defining Parameters- Trial Balance.
The screen presents a list of the existing types of Trial balance, with following columns:

Name – just the name to be used for this trial balance

Account level – lower account level from the Chart of account to be used in Balance
Type – period to be analyzed in the balance
Is default – the balance to be proposed at the moment of report running
Note: on the upper area are the generally used buttons, except the specific one
It is used in order to configure the Header and Footer of the printed Trial balance:

Double click on the line of any balance a new window is open to configure the content of the balance. Window looks the following way:

At general information, information such as: Name, Type, Accounting system, etc.
In the lower side of the window, the following things are established:

1. The columns which are part of the balance and the calculation mode
 1. The accounts which will be excluded from the balance, so called "Off balance accounts"
2. Configurable filters

Some special Trial balance, defined based on the same date, can present supplementary content selected by:
Partner – Balance present ONLY accounting notes for the selected Partner (Client, Supplier, Dealer, etc.)
Item – Balance present ONLY accounting notes for the selected Item (Capital, Interest, Assets, etc.)
Document – Balance present ONLY accounting notes for the selected Partner (mainly Contracts)

Special Accounting Reports

Those reports Balance Sheet, P&L account etc. are underlined here.
These reports are configured at Accounting- Defining Parameters- Special Accounting Reports.
The following window presents a list of existent reports:

Reports are configurable: starting from a standard structure, the user can delete or add lines in the report, can modify the formulas through which the amounts are
calculated etc.
By buttons Add/Modify, you enter the window for editing where the structure for a special report can be established. Let's take the example P&L Account:

In the upper side of the window, General Information is introduced:

Code si Name for the report

Accounting System
Etc. - usual ones…

In the lower side of the window, at Details, the lines which make the report are configured:

Order number: to give a number and position to the line in the report
SpecialReportName: this will be displayed in the report printed on column « Indicator Name »
SpecialReportDetCode: it is a code which will be used especially in the calculation's formulas. This code will be displayed in the report printed on column « No.
rd".
Formula: the calculation mode of the amount which will be displayed on the current line is configured
Colour: at totals a colour that underlines the respective amounts can be used
Style: at certain lines, the font can be changed (Bold, Italic, Underline)
Calculation Order: order the amounts in the report are calculated with. E.g.: the first line has at formula "LINE (02) + LINE (03) – LINE (04) and Order in
calculation=1 and the lines 02, 03 and 04 have 0. This means that lines 02, 03, and 04 are first calculated and then 01 as the number of values on these lines.
Report row: row to present that specific line

Formulas calculating the amounts displayed in the report can be modified in 2 ways:

directly in the formulas list, by writing on column "Formulas", on the corresponding line E.g.:
: Lines add up: 01, 05, 06, 07 si 08. Remark: in a formula "LINE (01) +LINE (05)-LINE (06) +
LINE (07) + LINE (08) the numbers of lines are taken from the column Code.
: from the cumulated figures debit of the account 605, the cumulated figures credit of the account 7413 are
decreased
 : if the amount from line 09 is larger than the one on line 30, the difference between them is
posted. Otherwise, it will be posted 0

In the window for editing formulas, which opens by pressing , or pressing the button from the right side of the list window

Modifications made to a formula are saved by pressing

Accounting Notes

Accounting notes description

Accounting notes may be visualized or added (as manual accounting notes) to the database after you open Accounting > Accounting notes.
The manual accounting notes should be used, however, for situations in which the accounting operations could not be modelled through a document, for adjustments, or
in case you do not have a Charisma module installed, therefore the corresponding accounting documents cannot be automatically generated (for example, if your
application does not include the Fixed assets module, you will have to enter manually the accounting note concerning the depreciation).
In the list mode window, you may visualize the list of existing accounting notes(manually or automatically).
In the upper area of the list, are several buttons, as can you see:

The button can be used for:

Export to and Import from XML - the entire list of Accounting Notes can be obtained or sent to other applications
Filter – pressing the button will be displayed all the Accounting Notes corresponding to selected filters
Add – add a new Accounting Note
Modify– modify an existing Accounting Note
Delete– add an existing Accounting Note
Main filters – explained below, under the list of accounting notes
Advanced filters – explained below, under the list of accounting notes
Reset filters – explained below, under the list of accounting notes
Functions – standard functions are presented below. Fixe the mouse on one of the Notes from the list and you can copy it, or reverse it (change the sign of each
amount in the Notes)

Close – close the window

Under the buttons is the standard filtering area, used to select some Accounting Notes corresponding to filters value.

Document date From – To: interval to select the existing Accounting notes
Document No – Number of Accounting notes
Partner – The partner associated to the AE
Username – The user who generated the AE
Location – Location for the respective AE (can be real location, or selected Company)
Accounting system – used only when the Company use in parallel several systems
Source document type – Type of Document have been accounted (contract, invoice, etc.)
Document number – Number of the accounted Document

Also, special filtering can be done with the 3 filters from the very upper zone:
 Main filters – pressing the button the standard filtering area presented above is collapsed and the filters for each column can be applied (standard facility in the
Simple grid list). In that area you can sort (up/down) or filter incremental on each column

Advanced filters – may also be used after pressing the button

The advanced filtering window shows up. You may establish here simple or complex filters using all the presented fields. After choosing the values for all the fields you are
interested in,

Filtering in the list mode screen (the initial filters) are taken into consideration together with the advanced filters established in this screen.

Reset filters – reset of the selected filters, and the situation is as have been before selecting something.

Enter a new Accounting note:

In order to add a manual accounting note, press in the list mode screen.

To modify an existing one, press after you have selected it in the list.
In both cases the following edit screen opens:

In the upper area of the document, are several buttons:

Just some of them must be described:

Trace – connection (through transactions) with other Charisma documents

Status History – history of status changes for that Accounting note, including user who made the change, status and change moment. Also, a comments field
 Multidimensional allocation – possibility to connect values of each line(detail) to Cost Centers, Budget lines, Contracts, etc

Navigation buttons: Left / Right movements you can done to go on another Accounting note

There are 2 tabs: Main and Properties.

Properties are as usual in Charisma a list of User defined fields for that type of Document (accounting note)
Main include all the essential information, presented in 2 distinctive areas may be noticed on the main screen:

Document header – shows some general information about the accounting note: Number, Date, Accounting system, Partner, Currency, Exchange rate, Journal,
Remarks, Source acc bill no., Comments, Adjustment, Blocked, and data referring to the Source document (Type, Date, Number)

From all the fields, some information is necessary just for:

Source acc. Bill no. – the connected accounting note (from one accounting note it is generated another one to express the business relations
Adjustment – a note to adjust previous situation (like small unpaid values)
Blocked – accounting note is blocked for any other intention to change it

Document details – the table below contains all important data for each line of the specific Accounting note, as can be seen:
As - Debit and Credit accounts with their corresponding amounts, VAT rates, currency, Partner, etc.
In case of manual accounting notes, the details may be entered using the <Add> button on the right side of the table - with <Modify> you may operate changes to it. As a
result, in both these cases (<Add> or <Modify>), the detail edit window opens as shown below.

The detail screen include :

Debit – Symbol & Name of the debit account, Connected Partner, Amount, Currency and Exchange rate
Debit – Symbol & Name of the debit account, Connected Partner, Amount, Currency and Exchange rate
Note: Partner can be different – like a Supplier and the Bank for the payment
Currency can be different also – you pay with Local currency an invoice in USD
Equivalent – value in Base currency, it is just once – always the debit and credit for a single registration have the same value
Reference currency – represent the value in a Reference currency – used for special reports/reporting, different then Base currency used for Local reports and Legal local
reporting
!!! Other fields are self-explained
An accounting note becomes Validate automatically at the end of the accounting period, when period is closed.
Choosing Enabled as document State has no special consequences, as documents can be re-accounted multiple times (the information will not be registered repeatedly in
the system). If you want a certain accounting note to remain unchanged, to avoid re-generating it multiple times, you may block it by pressing <Block accounting As a
result, the source document will no longer appear in the list of unaccounted primary documents.
The reverse action may be achieved by pressing <Unblock accounting> (appears in the same position on the screen, replacing the <Block accounting> button).

Excel Import of accounting notes

The accounting notes can be also automatically imported from the template format(Excel) including at least mandatory fields. The import is used for parts of company
activity which is not managed in Charisma ERP

The number of the bookings imported follows the rule for manual accounting notes. For this, the user will not enter any number in the excel file and at saving the system
will automatically generate a number.
The imported accounting notes will be in draft status and a separate user than the one who imported them in the system, must validate.

Duplication / Storno (Credit note) of an accounting note

A duplication of a booking entry can be issued selecting a booking entry and choosing 'Copy' from Functions. A different window pops-up and the user must select the
'date' of the copied booking.
A credit note/storno of a booking entry can be issued selecting a booking entry and choosing 'Issue credit note' from Functions and the 'date'. The system will issue the
same booking entry with negative amounts for all accounts in the booking entry.
The user is not allowed to save a credit note or a copied booking in a month closed from accounting point of view.
A credit note or a copied booking will be issued in draft status and a separate user than the one who issued them in the system, must validate (4 eyes principle applies).

Automatic booking

Accounting monography is implemented in Charisma ERP system using standard functionalities:

posting model interface,

entities and attributes interface,
accounting document state,
properties.

Accounting notes in Charisma ERP are basically connected with one operational document. The ERP system support connection 1 to 1 between reference document and
accounting notes for one accounting system type.
Charisma ERP system give support facility for adding manually accounting notes. All uncovered necessary accounting notes set up in monograph accounting book, will be
added manually in the system by the end user.
Charisma ERP support possibility to modify manually an accounting notes related to one reference document due to some necessary additional information which cannot
be covered by posting model. (E.g.: add supplementary observation, modify value due to some operational calculation errors, add a reference document for some details
from accounting notes where this
functionality is not made automatically by the system).

How is working the automatic posting

The accounting notes generated in Charisma are mainly one to one (for each line/detail of the documents a line/detail in accounting note is generated. So, the debit and
credit account can have a same value always.
!!! Note - In some cases several accounting lines can be generated for the same document line. Sample: payment generated in another currency then document currency
will produce an exchange rate difference which has to be accounted on another line (another debit/credit/value)
The generation steps are:

1. Each line of the processed documents it is verified according to conditions of the Posting model.
2. If condition is completely fulfilled the model is applied (as above, same condition can be verified and several line will apply).
3. If the model has a tree structure, the condition will drive to the last level line to apply the model
4. If no condition is fulfilled an error is generated
5. The same process applies to each document line

See the Posting model definition to see how the information for a line in the posting model is selected and generated.

Accounting notes generation from primary documents

The automatic accounting of primary documents is performed in Accounting > Accounting notes from master documents.
In the upper part of the screen, you may filter using the following fields (see below the window):

From Date - select the start of period in which the documents to be accounted have been entered in the system
To Date - select the end of period in which the documents to be accounted have been entered in the system
Document number – number of the document to be accounted
Document type – the primary document type to be accounted
User – User who generated the accounting note
Partner – The partner on the document(s) – client, supplier, bank, etc.
Accounting system – system for generation of Accounting notes
Posting model – select the accounting model in case you have previously selected a document type, you will only see the posting models that apply to that
document type
Accounting state – refers to the state of the documents in the list (Applied, Not applied). In any case before Closing the accounting period, any document can be
re-accounted by automatic generation. Mainly it is the case of re-accounting for an error in the model
 Location – In case of Administration activity by location
Transaction – select the transaction (the selection list is restricted by the document type and posting model previously selected)
Property filters – if it is checked, the last line is open and the user can select for predefined list of property for Document and Detail and add a value of the
property.

You may use all these filters to get a restricted list of documents in the list mode screen.

On the top of the selected documents are 4 buttons:

Select / Deselect all – refer to all the list of Documents in the screen
Display accounting record – open the screen for generated accounting note IF the document been already Accounted (or applied)
See the document – open the screen of document to be accounted:
Before starting generation of the accounting notes, just right-click on any line(document) and have the possibility to use following actions:

1. Accounting model – you can see the complete data for the model to be applied here
2. Apply posting model – you will see the accounting note to be generated, just to verified if it will be OK
3. Change transaction – choose another possible transaction for that document
4. Document values – the value of the documents to be accounted (interest amount, service value, VAT, etc.)
5. Delete accounting bill – delete the already generated accounting note

To view how a document was accounted (result of the automatic booking generation), press the button .

The screen of the accounting note for that document is presented. As have been described in the chapter: Accounting
notes description
!!! The main action is in the left upper area of the window .
Pressing that button the process of automatic accounting for the selected primary documents starts. User can see at any moment the number of documents already
accounted in the area of filters

When ready, these documents state will change to Accounted (or applied)
If there are errors in the posting model definition and the accounting operation fails, the line corresponding to that document is colored in red, its state indicates the
presence of an error and in the Error message column you may read the content of the error message.
With a right-click on that line 5 activities are proposed:

and user can do the right activity, as have been described above.

Accruals and deferrals

Definitions, configurations, and calculation

Accruals and deferrals play an important role in accounting. According to the matching principle, business expenses and revenues should be reported in the same financial
period (month / year). Otherwise, costs from one year could be misleading if listed in prior or future financial years.
Accruals and deferrals help adjust this balance by ensuring that business expenses are recognized in the same year.
Future income/expenses invoiced in future must be recognized in the actual period.
Also, income and expenses for already received invoices, referring to future period must be recognized monthly.
!!! Note: The treatment of Accruals / Deferrals is different in different implementations, and in some cases is done mainly on the back side (not in a screen).
Here is presenting a most complete solution.

1. Accruals: accruals represent the part of the income / expense, which is not due, but has to be recognized as income / expense of the month, concerning the
month activity.

This is valid for Interest and penalties Revenue/Expense:

Interest Income for Leasing/Credit Contracts with clients

Interest Expense for Credit Contracts (Refinancing - Drawdowns)
Penalties Incomes for Leasing/Credit contract with clients
Penalties Expenses for Credit contract (Refinancing – Drawdown)

The type of calculation applied to the accrual calculation is defined at the level of Schedule Type:

Interest in advance / in arrears

Type of interest calculation: 30/360, actual / 360, actual / actual.
 1. Deferrals: represent the part of the income / expense which was due in previous periods but is related to the current month.

The following methods of deferrals are established in the system:

Deferral types

Linear 30/360

Linear actual/360

Linear actual/actual

Proportional to interest

Real Interest

The deferral types can be associated with different services, fees, expenses from the contract and a calculation method.
There are 2 accepted methods for accruals and deferrals calculation:

1. Based on "Real interest" (IRR), the most usual method and the IFRS accepted one.

In case the method is "Real interest", the "Contract Income type" has to be selected. This component is used by the system to establish on which category of internal
payment plan based on Multiple IRR calculation (one for each element) to defer that income or expense.
This method calculation is part of Internal Schedule calculation, started from Functions -> Schedule -> Internal schedule

1. Linear – The element to be accrued / deferred is divided in equal values for each month of the total period (an expenses for 5 months, due at the beginning of
period is recognized and booked monthly with Total value / 5)
The method is mainly applied to non-leasing elements.

Calculation rules for Accruals and Deferrals

Accruals

Interest Accruals (most important element to be accrued in Financial Services activity) can be calculated for all type of contracts, including refinancing contracts
(withdrawals) being in status Validated.
The algorithm used for calculation is presented below:

the calculation is done at the last calendar day of the month for the current month.
due date of last instalment before the calculation date is determined.
number of days is calculated as a difference between:
the calculation date and due date of the previous instalment (example: if the due date is 15 and the calculation date is 31. the system will calculate the accrual
for 16 days).
OR the calculation date and the date when the financing starts (in case when no previous installment exists), excluding from calculation the received date and
including the calculation date.

accrual interest is calculated as the [interest amount not paid in period] * [number of days in month] / [number of days in period]

At the beginning of each month the accrued amounts will be credit note with the same values and currency rate as original booking.
In the following attached file, an example of calculation of accrual is presented:

Deferrals

Deferrals represent the part of the income / expense which was due in previous periods but is related to the current month.
The deferral is done at the end of each month in Local currency or EUR for contracts in all statuses excepting Draft and Closed.
The deferrals are based on amount expressed in fiscal invoices received (dealer commission / expenses) or issued (management fee, subsidy, and down payment /
incomes)
Usually, the following elements that need to be deferred for all types of contracts:

Management fee.
Subsidy.
Dealer commission
Down payment (linear calculation rule) only for Operational Contracts

Because the first installment is in the same month with activation of the contract, the starting point of deferral is the month of Activation of the contract. End date is
month of last instalment. All months are equal in deferral amount.
If the contract is early terminated, the amount remained not deferred is full recognized in income or expense.
The calculation deferral based on interest method is described in the Excel file attached:

Suspension of the contract stops the deferral process. In case of reactivation the deferral amounts will continue. Previous deferral months not recognized are recognized
in the first month after re-activation.
!! Closing of a contract by early termination or total damage will also impact the deferrals by recognizing the remaining amount not deferred in the month of validation
the annex for closing.
!! For rescheduled payment plan of a contract regarding the period, the remaining not deferred amount must be recalculated over the remaining new period.
Charisma documents for Accruals and Deferrals Calculation

The accruals / deferrals of the month (incomes and expenses) are generated within one of the 2 screens:

Linear Deferral (non-leasing)

Accounting > Accrual and Deferrals > Linear deferrals (non-leasing),

It is dedicated to linear registration for non-leasing documents, mainly Purchasing Invoices

The user should add a new document for all Linear deferrals and the related fields have to be automatically selected by the system (like for Depreciation of fixed assets)
The initial data and information for the calculation of the linear deferral (non-leasing) has to be manually inputted by user. – once for each Invoice for the entire period.
For manually inputted data (see print screen below) "Document No", "Document Date", etc.
The related "Source document type" and "Source document name" must be chosen - Purchase invoice created before.

After the document is saved the user is able to use "Select detail", which will open an interface where he/she can choose the details from the Source document that
should be linked to this Manual Deferral document.
On the document should be added at least one detail (on Detail tab – Select details) that is related to the account in order to know what has to be deferred. All the fields
for the Detail have to be filled.

After the item is added the schedule should be recalculated (sheet "Depreciation"). The user has the possibility to change the accounting dates (by default are end of each
month).

The posting modes can be generated from: Accounting ->Periodic operations

Select "Linear Deferral (non-leasing)" and choose the month.

Press Generate.

Accounting > Accrual and Deferrals > Accruals /deferrals document

It is dedicated to interest proportional registration for leasing/credit documents (contracts, invoices, etc. in case of interest, management fee, dealer bonus, etc.)

To save a new document the use has to follow the next steps:

1. Fill the document number (e.g., "May 2020" or "Storno_May 2020") and Date
2. Select the period for which the document is generated and Accounting system
3. Select the Accrual type: "Normal" or "Storno"
4. Press Save

The last action will calculate the details of the document. The result can be seen below:

In case some changes are done in the system and the document has to be recalculated, press "Recompute document".

Once the details are calculated, the document can be validated by pressing "Validate"

Both of above presented Documents to manage Accruals and Deferrals are generated automatically in Charisma ERP, collecting data for the respective month from Special
dedicated documents. (Identical to Depreciation document taking data from each Fixed assets cards).
Main source for data is collected from Internal Schedule of each Leasing/Credit Contract.
Both of above presented Documents are reflected into accounting at the end of the month.
The bookings are automatically done by Charisma using the screen "Generate accounting notes".
For accruals a new accounting note is generating at the beginning of next month, like a credit note / storno.

Main Charisma rules for Accruals and Deferrals Calculation

Accrual and deferral for Leasing contracts - IFRS

It is used mainly for IFRS accounting system, but also for Local accounting in some countries (accruals and deferrals based on interest every month).

The calculation will start after the Due Date of the invoice compared to the last day of the month.
At the beginning of the next month, the accounting notes will be reversed with the same amounts recognized in the end of the previous month.
It will be calculated just in case of proportional to interest method for accrual or deferral.
Accounting notes are configured according to accounting monograph book.
Accruals and deferrals are calculated for all active contracts. Does not have restriction regarding the periodicity of the contract.

Accrual and deferral for loan to customer

Accruals and deferrals are calculated for Local and/or IFRS accounting systems, according to local rules.
The calculation will start after the Due Date of the invoice compared to the last day of the month.

At the beginning of the next month, the accounting notes will be reversed with the same amounts recognized in the end of the previous month.
It will be calculated accrual and deferral just for the interest from the external schedule.
The accounting notes accounts are detailed in accounting monograph book attached to the document.

Accrual and deferral for financing line

Type of calculation for interest on financing lines will be recognized monthly with the according amount.
Accounting notes will be monthly booked in the system.
For each month it will be calculated accrual based on the schedule of each financing line.
The accounting notes will be generated with the detailed accounts in accounting monograph book.

Provisions

Definitions of Provisions

Provisions play an important role in accounting. According to the matching principle , business expenses and revenues should be reported in the same financial year.
Otherwise, costs from one year could be misleading if listed in prior or future financial years. Provisions help adjust this balance by ensuring that business expenses are
recognized in the same year.
To help budget for liabilities or obligations, provisions are set aside.
Provisions essentially refer to any funds set aside from company profits for this express purpose. To qualify as a provision in accounting, the funds must be for a specific
purpose, such as to offset the decrease in an asset's value or the risk for expected unpaid invoices.
Provisions recognize likely obligations.
Provisions are always calculated at the client level, not at contract or invoice level. If anyone of invoices / contracts has problems, the principle of "Contamination" applies
for all Contracts / Invoices of the client.
Provisions are calculated different by different companies, according to Local legislation and Company/Group policy.
If both of them are necessary, 2 different values for Provisions will be calculated for the same delayed / future risk.
Always the calculation idea is the same:
Provision = [the expected unrealized value (unpaid) or value of invoices under future payment risk] multiplied with [predefined factors according to level risk]

The predefined factors used in calculation depend on several condition:

Actual status of the client, according to previous conditions

Number of delay days
Guaranties revaluated
Specific coefficient for calculation
Implementation of Provisions is very different to different companies.

Some of them use the standard functionalities in Bank Accounting. A special document is generated here and accounted as usually in Charisma
Some of them are calculated automatically by the system in back-side, and accounting note for provisions will be generated also in the backside.
Some of them are very specific implementation / screens / calculation
Some of them are calculated provisions outside and finally imported in Charisma

Calculation of Provisions

You can find here a short presentation of Provision treatment in Charisma according to Bank Accounting system.
Provision Menu – include activities necessary for calculation:

Classification criteria by risk classes

Provision calculation coefficients
Guaranties revaluation
Provision Document

1. Classification criteria by risk classes

Some predefined Criteria (Number of delays days AND Juridical status of the Client) are definable in that screen:

Based on days interval and according to juridical procedures between Financing Company and Client, one class will be selected for later step

1. Provision calculation coefficients

For each Class a coefficient is selected from the table (different for Companies and for Individuals)

1. Provision Document
A specific document is generated monthly in that screen:

For a selected month, the calculations are done by the system, and it is divided at different levels (on vertical), starting for Clients, and going on Contracts, Collaterals and
Invoices.
It is calculated the provision for the Calculation date (end of month) and presented the previous period values. So, the difference between two of them will be accounted
in that month.
The accounting note is generated just on action existing on Function button

Periodic operation

General presentation

Same month end operations are made at Accounting- Periodic Operations, after all bookings have been introduced on the respective month: incomes and revenues
accounts closing, VAT account's closing.
Periodic operations are accounting operations which occur systematically, at prearranged intervals of time, before the closing of the accounting period, such as: closing
revenues & expenses accounts, VAT closing.

Periodic operations generation / booking

This functionality is covered by Charisma ERP system using concept of periodic operation: a set of structured calculations which has impact in accounting at one moment
in time.
Generation of accounting notes from periodic operation is done using one common interface where end user set the period of accounting date. (Month or year)
Different periodic operation can be implemented, according to local company politics.
All periodic operation impact in accounting and accounting formulas are detailed in local/specific accounting monograph book.
The periodic operations thus configured may be started after selecting the Accounting > Periodic operations option. The action will take place only after all accounting
notes have been generated/entered, as the periodic operations are meant to close certain accounts. The Periodic operations screen is presented below:

In order to start the operation, you will have to select the Month for which you want the operation to be performed, then select the periodic operations with a click in the
first column (or check the Selected box in the upper part of the screen, to select all the operations) and in the end press the <Generate records> button on the upper area
of the screen.
You will notice that the Month and Date columns are automatically filled in the number of the accounting note generated for each operation is displayed in the No
column.
The periodic operations may be performed one by one, by selecting the respective operation with a click in the Selected column of the table and the Month on the same
line.
!!!Note: In case new accounting notes are generated/added after the periodic operations have been performed, you will have to repeat the periodic operations.
After Generation in the lower part of the screen you can see the result for each periodic operation, after click on respective Operation. On the prints creen you can see the
result of Income and expenses closing.

Periodic Operations description

Periodic operations can have several periodicities: monthly, quarterly, and yearly.
Some of them are generally used by majority of companies, some of them are specific.
Also, some of them are done in that screen, or in some other specific screens (as presented above for Accruald, Deferrals, etc.)

Closing of Incomes and Expenses accounts

The P&L (profit & loss) accounts are closed usually monthly, but in some countries at the end of the year. The closing is done in screen "Periodic operations", from
accounting menu. The bookings are detailed in accounting monography.

Closing of VAT Accounts

VAT - monthly reconciliation. Will be compared SUM (VAT from payments) with SUM (VAT from receivables) and will be establish which is greater in value.
(*will be used standard VAT closing from Charisma)
If SUM (VAT from payments) > SUM (VAT from receivables) that means will have VAT to pay
If SUM (VAT from payments) < SUM (VAT from receivables) that means will have VAT to receive
Monthly revaluation for accounts in other currency

The operation can be used only by companies using Local currency different from EUR, the Local Accounting system is not compliant to IFRS and they need the IFRS
treatment. The exchange rate used for revaluation is the one from the last day of each month with the following specifics

Revaluation for regulatory purposes is based on National Bank exchange rate: accounts for bank accounts, withdrawals, foreign customers, and suppliers.
In some cases, can be also revaluation for regulatory reports, but have strictly local rules

Monthly or quarterly revaluation is done using the exchange rate from National Bank

Monthly depreciation

Monthly depreciation for fixed assets is done by accounting users, at the end of each month, in Fixed assets menu, in screen: "Monthly depreciation sheet". The bookings
are detailed in accounting monography and are automatically generated by Charisma from screen: "Generate accounting notes"
More details related to monthly depreciation can be found in Finance specification.

Accruals and deferrals

For more details regarding the elements that are accrued and deferred please see chapters: "Accruals and "Deferrals". The bookings are detailed in accounting
monography and are automatically generated by Charisma from screen: "Generate accounting notes".

Unearned interest and Storno unearned interest

This is an accrual operation: It will be generated monthly an accounting notes for unearned interest from all active contracts (business flow: Activated state) in the system
(no total damage, no canceled contract) and will storno. at the beginning of the next month. The accounting notes will contain information related to each contract, so will
have one line with debit, credit account and amount for each active contract (no total damage, no canceled contracts in the month of calculation).
The amount recognized is the unearned interest (not yet invoiced) for each contract. The amounts from accounting notes will be grouped at the level of the account.

Contract commitments

This is a monthly periodic operation made based on all amounts (W.O. VAT) of the contracts signed (now yet activated) minus all the amounts from the Leasing purchase
invoices – Advance (W.O. VAT)
The accounting notes is detailed in accounting monograph book
.

Period closing

Closing of the month

In the process of Month closing (accounting point of view), a series of Checks must be done. These are divided in 2 areas:

General operations

All documents have been entered

Do not to exist draft documents not validated.
Monthly depreciation has been done.
 Accounts that have Cost Centers mark have the entire amount allocated to cost centers.
Do not exist manual accounting notes not validated.

Financial specific operations

Payments allocated to invoice details

Currency invoices revaluation (according to accounting system – if t is not IFRS)
Accruals and deferrals calculation and booking
Provisions calculation and booking

Closing period flow – standard

To close an accounting period (month) you will have to take the following steps:
Step 1. For each module you have installed (excepting Finances), check for the existence of documents in the Draft state. This may be done in two ways:

1. Select and open the list mode screen for each document type created in Charisma. Use the filters on the respective screen to view documents entered within
the accounting period you are closing (select the first day and the last of the period) and in the State field select Draft. Then filter to view all the documents that
have not been validated. You may choose either to validate or to delete them, as the case may be.
2. Select Accounting > Reports > Miscellaneous reports and run the report entitled "Documents in Draft state" (the fastest way).

Step 2. Close the month operationally, so that no more documents may be operated on the respective period. To do that, open Accounting > Parameters definition >
Accounting period status and proceed as explained in the preceding section referring to this operation (see "Accounting period status").
Step 3. Generate the accounting notes corresponding to the period that will be closed after opening Accounting > Accounting notes from master documents (see the
section "Accounting notes from master documents").
Step 4. If needed, enter the manual accounting notes using the Accounting > Accounting notes option, as explained in the section entitled "Accounting notes".
Step 5. Run the periodic operations as explained in the "Periodic operations" section. The result of this action is represented by the accounting notes that refer to the
closing of revenues & expenses accounts, VAT closing and the revaluation of the available in foreign currencies. These accounting notes are created with the date of the
last day of the period you are closing and may also be retrieved and visualized in the Accounting notes screen.
Step 6. The next step is represented by the closing of the month from the accounting point of view. This operation is also performed in the Accounting period status
screen, as in step 2. As a result, accounting notes may no longer be generated, nor entered manually in the system. However, if needed, the accounting period may be re-
opened for accounting operations and even from the operational point of view, allowing you to operate other types of documents, also using the Accounting period status
screen.
Step 7. Use some of the reports present in the Accounting module (Accounting > Reports), to verify the correctness of the operations you have performed during the
accounting period you have closed: Trial balance, Cash book, Bank book, Sales ledger, Purchase ledger, etc.

Closing period flow – other possibility

In Charisma it is possible to follow-up the previous steps in a single screen, as can be seen below:

Fully configurable flow includes all the necessary steps to realize the closing of period.
The step is mandatory realized according to flow order, and parallel run can be realized in any order. But you have to realize already all the operation to go to the same
next one.
Each step is realized just pressing the button "Run" and see the result pressing "view"
All the calculation in the back-site is done using SQL procedures.

Reports

Reports presented in the Accounting Module

Accounting module has a lot of reports, main part of them being legally mandatory.
The list of standard reports can be seen on Accounting > Reports:

Tags/Statements
The menu line includes several / essential reports as see below:

The Account tag show the accounting activity per accounts and in General Ledger all the accounting activity for specific period.
Account Tag is also filtered and presented by Currency, Document type, Items, User, Document, etc.

Books/Journals

The menu line includes several / essential reports as see below:

Sales and Purchasing ledger are essential for VAT follow-up, including all the documents of the period in these 2 directions
Bank and Cash register includes all the operations done in the period, from the point of view of Incoming and Outgoing payments

Trial Balance
The menu line includes several / essential formats of Balance as see below:

The normal trial balance is presented in the print-screen below. A lot of filters give the possibility to see and analyze total activity of company per periods

Special Trial balance can be obtained per Partners. Items and Dimensions.

Accounting special reports

They are the special reports, proper to each accounting system:

RAS: Balance Sheet, P&L Account, Financial Results, The Patrimony Report
IAS: Ballance sheet, Cash flow, Profit & loss

Operational special reports

Include the following reports: VAT Declaration, Declaration to state budget, Declaration foe tax on profit.

Revaluation account of assets

Cost centers/profit

Specific Reports presented in Reports menu

In some other implementations, the reports are presented in a special menu line including lot of Specific reports per Client. Just a screen to select that reports is
presented below:

Complete trial Balance - includes the balances from the year start
Simple Trial balance -does not include the initial balances
Depending on the location for which the report is printed
Cumulated Trial Balance – on all locations
Simple Trial Balance – a certain location is filtered

After all necessary settings are established, the button is pressed, and then you enter the window for viewing the report.