SytelineMaster

General Concept:

• Customer amounts will be stored in the customer’s currency. This effects CO, Estimating, and AR.
• Vendor amounts will be stored in the vendor’s currency. This effects PO and AP.
• Cash accounts in Bank Reconciliation may be stated in non-domestic currencies. When receiving customer payments or making vendor payments we may specify the payment with either domestic currency or the customer/vendor currency.
• All journal. Ledger, inventory ( price & cost) and shop floor amounts are always stated in domestic currency.

NOTE: Therefore when amounts are posted into journals they are translated.

PO & AP:

• Gain/Loss – When exchange rates increase over time (foreign currency per one unit of domestic currency), we record a gain and when exchange rates decrease, we record a loss.
• Entry – PO header & line/release casts are entered and stored in the vendor’s currency. Whenever these amounts are defaulted from the Item master, they are converted using the current exchange rate.
• Receiving – At receiving time, we record the amount received, cost, and exchange rate. We post domestic amounts to the journal using this exchange rate.

Account Numbers Posted (PO Dist):

• Debit- Inventory account
• Credit- Vouchers Payable

Generating Voucher (PO) & Posting Vouchers (AP) – When we create the voucher record, we store any change in exchange rate from Receiving time to voucher generation time as a distribution. The voucher is stored in the Vendor’s currency. When the Voucher is Posted, domestic amounts are posted to the journal and vendor amounts are put on the Posted Transactions record along with the exchange rate that was used for posting.

Account Numbers Posted (AP Dist):

• Credit – Accounts Payable
• Debit- Vouchers payable

Payment – Payments may be entered in either Domestic Amount or Vendor’s amount based upon the currency code of the Bank Code you select for the payment. When the payment is posted, domestic amounts get posted to the journal, and vendor amounts are put on the Posted Transaction record. At payment posting time, we perform a mini-gain/loss for the voucher and any payments or adjustments to that voucher. All of the Posted transactions tied to the voucher will be “upgraded” to the new exchange rate
Account Numbers Posted (AP Dist):

• Credit – Cash account (Payment Amt @ new rate)
• Debit – Accounts Payable (Voucher Amt @ old rate)

Voucher’s Gain/Loss posted to either Loss (Debit) or Gain (Credit)

CO & AR:

• Gain/Loss- When exchange rates decrease over time ( foreign currency per one unit of domestic currency), we record a gain and when exchange rates increase, we record a loss.
• Entry- CO header and line prices are entered and stored in the customer’s currency. Whenever these
  amounts are defaulted from the item master, they re converted using the current exchange rate.
• Shipping- At shipping time, we record the amount shipped, price, and exchange rate. We post domestic amounts to the journal using this exchange rate.

Account Numbers Posted (CO Dist):

• Debit – Cost of Good Sold
• Credit – Inventory

Invoice Printing (CO) Posting (AR) – When we create the invoice record, we store any change in exchange rate from Shipping time to invoice printing time as a distribution. The invoice is stored in the Customer’s currency. When the Invoice is Posted, domestic amounts are posted to the journal and customer amounts are put on the Posted Transaction record along with the exchange rate that was used for posting.

Account Numbers Posted (AR Dist):

• Credit – Sales (Invoice @ Old rate)
• Debit – Accounts Receivable (Invoice @ new rate)

Payment – Payments may be entered in either Domestic Amount or Customer’s amount based upon the currency code of the Bank Code you select for the payment. When the payment is posted, domestic amounts get posted to the journal, and customer amounts are put on the Posted Transaction record. At payment time, we perform a mini-gain/loss for the invoice and any payments, debits or credits to that invoice. All of the Posted transactions tied to the invoice will be “upgraded: to the new exchange rate.

Account Number Posted (AR Dist):

• Debit – Cash (Payment Amt @ new rate)
• Credit _ Accounts Receivable ( Invoice Amt @ old rate)

Difference to currency Loss (Debit) or Gain Account (Credit)

Gain/Loss Utility

At various times, users may wish to recognize any outstanding Gains or Losses. They may run this utility and specify either AR,AP or both.

AR – We process all Posted A/R Transactions and upgrade them to the current exchange rate. For each invoice that has a gain or loss, we post the amount to Accounts Receivable and the Gain or Loss Account.
AP- We process all outstanding PO Receipts (received but not yet vouchered) and upgrade them to the current exchange rate. For each record that contains a gain or loss. We post the amount to Vouchers payable and the Gain or Loss Account.

We process all unposted vouchers and upgrade them to the current exchange rate. For each voucher that has a gain or loss, we post the amount to Vouchers Payable and the Gain or Loss Account.

Gain/Loss Accounts:

• Users establish account records for Gains and Losses.
• The Gain Account is always used to record gains due to exchange rate changes.
• The Loss Account is always used to record losses due to exchange rate changes.

Currency Master:
SyteLine contains a currency master file where all currencies are maintained. Users may enter an unlimited number of date & time stamped currency exchange rates. They may also back-date these rates by entering a past date. There are two exchange rates entered. The Buying rate is used exclusively in PO and AP. The selling rate is used exclusively in CO, Estimating, and AR.

Financial Statements:

Users are able to print Financial Statements in different currencies. Prior to SYMIX 4.0, they could only accomplish this when they were consolidating multiple divisions. The “final” Financial statement would be printed in the currency of the division running the report. The exchange rates used to convert the data were the ones stored in the division running the report. Now in V 4.0, users can choose which currency they wish to print their financial statements in. The exchange rates used to print the report are the rates stored in the database that contains the ledger records being processed. The translations are for display purposed only. No posting of any kind takes place & no gain or loss is calculated.
Translations are defined for each line of the financial statement. Users choose to use the Buying or Selling Exchange rate. They choose a translation method: None ( no translation), Spot ( historic rate for each transaction), Current ( current exchange rate), Average Period ( weighted average exchange rate in effect for the accounting period for each transaction), End of Period ( exchange rate in effect at the end of the accounting period for each transaction)

Landed costs may be added to purchase order lines in order to receive estimated costs for freight, duty, and brokerage into the inventory value of an item.  Each of the separate landed cost components may be paid to the purchase order vendor or to a different vendor.  Landed cost capitalization is available for both actual and standard costing.

Landed cost setup requires accrual accounts in the Purchasing Parameters file and a landed cost inventory adjustment account in the Product Code file for those inventory items for which landed cost is to be activated.

To set up Purchasing Parameters: File ->Parameters->Purchasing ->Purchasing Parameters ->Edit->Update

Enter accounts in the following fields – Freight Payable Acct, Duties Payable Acct, and Brokerage Payable Acct

To set up Product Code file account:  Modules ->Inventory ->Item Master ->View ->Files->Product Codes ->Product Code – Miscellaneous

In each product code record, enter an account in the Landed Cost Inv Adj Acct field

To use Landed Cost functionality, add Purchase Order and PO lines.  Assign estimated costs and vendors for freight, duty, and brokerage:

(From PO screen)  View -> Landed Cost ->Edit ->Update

Add a Freight Vendor and Frt Alloc Type.  Freight, duty, and brokerage may be calculated using either percentage of cost or a fixed amount.

These costs are then allocated over all lines on the PO by one of the following three methods:

• Cost:  The total cost for the PO and the proportion of each PO line’s cost to the total cost will be determined.  The estimated landed cost amount will then be allocated across all PO lines according to the same proportion.
• Unit:  The total number of units for the PO and the proportion of each PO line’s units to the total number of units will be determined.  The estimated landed cost amount will then be allocated across all PO lines according to the same proportion.
• Weight:  The total weight for the PO and the proportion of each PO line’s weight to the total weight will be determined.  The estimated landed cost amount will then be allocated across all PO lines according to the same proportion (weight field stored in the Item Master General screen).  The following points are important when using weight:
  • Zero weight items will have a zero landed cost assigned
  • Weight allocations will not be allowed if all PO lines have zero weight
  • Weight units of measure will not be considered, therefore, incorrect allocations could result when weight units of measure are mixed  (ie – lb and kg)

Enter estimated freight charge if the allocation type is Amount or add a percentage if type is Percent

Repeat for duty and brokerage charges

Perform allocation by selecting Activities, Allocate Landed Cost

These amounts will then be reflected in the Unit Cost field on each PO line.  When the PO is received, these amounts will be added to the cost of the item received into inventory if an actual cost item, or be considered in a variance calculation if a standard cost item.

The calculated landed costs may be overridden by the user from the PO line by selecting “Update Costs” in the Edit-Update mode, and entering a new value in the appropriate landed cost fields.  The “Overridden” box will be marked.  Any lines marked as overridden will be ignored on subsequent allocations and the costs for the overridden lines will be subtracted from the landed cost estimate for the PO.

Vouchering Landed Costs

At the time of purchase order receiving, two purchase order receipt records will be created, one for material costs and one for landed costs.  Once an invoice has been received from a vendor, generating vouchers for the landed cost receipts is done in the AP module.

Modules ->Vendor ->Vouchers and Adjustments ->Activities ->Generate Landed Cost Vouchers->Edit ->Update ->Header

Enter the vendor from which the invoice is received.  Enter the invoice number and actual amounts for duty, freight, and/or brokerage charges.

Receipts to be paid by this invoice may be selected by a combination of sorting criteria, including the Selection Method, Landed Cost Type, and Receipt dates

Choose a Selection Method as follows:

• S  to display landed cost receipts for only this vendor
• O  to display landed cost receipts that do not have a vendor assigned
• SO  to display both

Blank to display landed cost receipts for all vendors within the date range

Choose the Landed Cost Type as any combination of (D)uty, (F)reight, and/or (B)rokerage

Enter beginning and ending receipt dates to narrow down the selection

All landed cost receipts that match the selection criteria will be displayed.  Select the lines to be included in this voucher by utilizing the selection options under the edit menu.  Highlight each line to be chosen, and then Edit-Select/Select All/Deselect

Highlighted lines may be updated to indicate the actual amount to be paid to the vendor (Frn Trans Amt) and whether or not variances should be recognized at this time for the receipt (Final = Yes).  A landed cost variance is calculated when the estimated landed cost is different from the vouchered landed cost.  “No” should be selected in the “Final” field when less than the entire quantity is vouchered.  When the balance is vouchered on a later invoice, “Yes” should be selected in order to recognize the variances.  If the entire PO line has not been received and “Final = Yes” is indicated in this screen, an error message will prevent the user from posting this line as final.

After the selection process is complete, select Activity –  Generate Voucher.  Vouchers are posted to the Vouchers and Adjustments file.

In the Purchasing module, the Landed Cost Variance Report is available to assist in analyzing variances.

Modules ->Vendor ->PO Reports ->Landed Cost Variance