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Archive for November, 2010

New Format of Project Estimated Budget with Chart of Account

November 22, 2010 2 comments

In normal routine we use general template to prepare a budget for project of duration 1 0r 2 years using number of sheets of excel.

After accepting this budget by detonator, Accountant will prepare a chart of account from this budget report.

I have design a new template with real budget data and plus chart of account.

this new template will show the budget data in one sheet also the chart of account of project.

enjoy the template by clicking below

suggestion are welcome.

Preparation of Cash Flow statement of PEPSICO using Indirect Method example 2

November 21, 2010 3 comments

Note: In this second example of cash flow preparation, I am using the actual data of PEPSICO.

How to prepare cash flow from the start, you can check my post previous https://mohsinpage.wordpress.com/2010/11/15/preparation-of-cash-flows-statement-using-direct-method-example-1/. In my previous post used additional information extracted from the analyses of two year balance sheet. In this tutorial I will analyze whole two year balance sheet and will extract additional information in the categories of Operating activities, Investing activities and Financing Activities.

Analyze the Balance Sheet and income statement:

Below is the balance sheet of PEPSICO of 2000 and 2001 and income statement .of 2001

CONSOLIDATED BALANCE SHEET FOR PEPSICO,INC., AS OF DEC 31

Millions of dollars

2001

2000

Assets
Current Assets
Cash and equivalent 1649 1505
Receivable 2142 2129
Inventories 1310 1192
Other Current Assets 752 791
Total Current Assets 5853 5617
Fixed Assets
Property, Plant and Equipment 12866 11466
Less: Accumulated Depreciation 5990 4908
Net Fixed Assets 6876 6558
Net Intangible Assets 4841 4714
Other Assets 4125 3868
Total Assets 21695 20757
Liabilities and Shareholders Equity
Current Liabilities
Debt Due for repayment 354 202
Accounts Payable 1238 1212
Other Current Liabilities 3406 3381
Total Current Liabilities 4998 4795
Long term debt 2651 3009
Other long term liabilities 5398 5349
Total Liabilities 13047 13153
Shareholders Equity
Common Stock and other paid-in capital 35 667
Retained earnings 8605 6937
Total Shareholders equity 21695 20757
Total Liability and Shareholders Equity 21695 20757

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Preparation of cash flows statement using Direct Method Example 1

November 15, 2010 7 comments

Cash flows statement prepared using two financial statements, 1st Income Statement and 2nd Balance Sheet.

Before preparing cash flows statement,

a. Analyze Balance Sheet

b. Reordering of Income Statements

Step1:

a. Analyze Balance Sheet:

we will analyze balance sheet each account of current year and previous year. From balance sheet analyzing we extract additional information (AI) for cash flows statement and regroup these additional information in three major categories.

  • Operational Activities
  • Investing Activities
  • Financing Activities

In this tutorial, I will not explain the analyzing of balance sheet, I just provide data in the form of additional information according to above three categories. I will use this categorize additional information for cash flow preparation directly. Read more…

Invoices (Customer and Supplier), Accounting Vouchers and its Reconciliation in OpenERP

November 10, 2010 12 comments

What is Reconciliation in OpenERP:

When a customer or supplier invoices is created in openerp, the state of these invoices are open. This open state means;

  • Supplier Invoices in open State: No payment is paid to supplier so far.
  • Customer Invoices in open state: No payment is received from customer so far.

Assume we have enter a payment voucher for a supplier invoice or similarly we have enter a receipt voucher for a customer invoice. In this case these invoices are still represented as open state in openerp system and customer will receive a reminder letter.

A method to inform openerp system that on behave of supplier invoice or customer invoice, openerp system paid(payment voucher) or receipt(receipt voucher) amount. This process is called reconciliation between invoices and accounting vouchers. Remember when you reconcile  invoice with voucher, the invoice state will be done from state open.
Read more…

Creating Partners, Products, Chart of Accounts, Invoices(Customers and Suppliers), Partner Balances in OpenERP

November 9, 2010 2 comments

In this tutorial i will show how to create partner with their account, Products (for Selling and Purchases), Chart of Accounts of a company, Customer Invoices, Supplier Invoices, Partner Balances etc and mush more.

Step 1: Create following chart of account; if you don’t know how to create accounts in openerp follow the post (https://mohsinpage.wordpress.com/2010/03/01/hierarchy-and-nature-wise-classification-of-accounts-chart-of-account-in-open-erp/)

Chart of Account

Chart of Account

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How to create Account Books (journal) in Openerp

November 8, 2010 7 comments

In our normal accounting cycle we use some of accounting books like sale journal, purchase journal, bank book, expense journal, general journal etc.

Openerp supports 5 different journal types;

Sale: for sale and sale returns journals

Purchase: purchases and purchase return journals

Cash: Cash Book and bank Book

General: General Journal

Situation: Opening Balance journal

In coming few steps of configuration I will show how to create journals of type Sale Journal, Purchase Journal, Opening Balance, Bank Book.

To create new journal access Financial management → Configuration → Financial Accounting → Financial Journals (click new button)

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