ADD – Adding a New Account

Selecting the ADD option allows you to create a new customer or supplier.

On the screen the prompt for the account code will be active, type in the reference of the new account which you wish to add to the file and press <Enter>. The account code must match the ‘format’ defined for your customer or supplier ledger, the format for the DEM company is three letters followed by three numbers (AAA999). If the entered account doesn’t match the format then the code is rejected and you are able to re-enter the code. You are not allowed duplicate account codes in the file, if you enter a code that already exists the system warns accordingly.

Once you’ve selected a valid code, the cursor moves to the input area of the first data item on the screen and you can start typing in account details. A typical account entry screen is shown below.

You can move through the data items using the <Enter>, <Tab> or <Down Arrow> keys, and move back up with the <Up Arrow> or <Shift>+<Tab> keys.Of course you can also use the mouse and position the cursor in to the data item value you wish to enter.Selecting the SAVE button, or pressing <Enter> on the last data item saves the account record to the file.Selecting the ABANDON button, clicking the X-close button, or using the <ESC> key abandons the addition of the account.

Notes

Whilst it should be self-evident the information required for the account name, address and contact detail some of the other items may not be as obvious and these are discussed below.

Customer Analysis Code

This is usually a table entry field used to analyse your customers – perhaps by region or customer type.Use <F4-Select> or click the ‘?’ icon to see the list of analysis options. By default the analysis codes are numbered 1 through to 10 but you can amend this to be from 1-to-9999 (you need to restructure the database for this) and you can amend the descriptions via the Tables option on the Tools pull-down on the main toolbar.

This analysis code is used by the Customer/Supplier Analysis report to breakdown the period and year-to-date turnover into the analysis categories.

Transaction Analysis

Stock Price No (Sales Only)

A code in the range 1–9 determines which price band in the stock or product file is to be used for this customer when invoicing using the invoicer or order processing applications.Note that the sales ledger itself doesn’t need this information, but this is the best place from which to maintain it.

The price number is usually entered only in the sales ledger. There is an equivalent option for the purchase ledger when linking to purchase order processing, however, this is rarely used.

VAT Code

Enter the VAT code usually used for the account. This is the VAT code offered by default when entering invoice and credit transactions direct in the ledger. Use <F4-Select> or click the ‘?’ icon to select the VAT code.

There are six VAT codes configured by default covering three different types of code:

UK Codes

S – Standard. Standard UK VAT, currently 17.5%

Z – Zero-Rated. Zero-Rated UK Vat, typically used for children’s clothing, etc.

F – Fuel, UK Rate used for fuel charges (electricity etc.), currently 5%

EC Codes

C – EC Goods, equivalent to UK standard rate

X – EC Services, equivalent to UK zero rate

External Codes

E – Exempt, used for customers/supplies outside the EC

The stock/product file holds two VAT codes per stock item – a UK VAT Code and an EC VAT Code. When using invoicer or order processing the ‘type’ of VAT Code recorded on the customer/supplier determines which VAT code from the stock file to read – if a UK code on the ledger then the system reads the UK code, usually just termed VAT or Tax code, from the stock record, if a EC code on the ledger the system reads the EC VAT code from the stock record.If the customer/supplier has an ‘External’ code then this is used instead of the stock/product VAT codes.

EC Country

EC VAT Registration No

When selling or buying from another EC country then provided you know the VAT registration number of the customer/supplier then you can zero-rate sales/purchase transactions.Enter the EC Country code and the customer/suppliers VAT registration number as appropriate.

EC VAT Details

Credit Terms

This is the default number of days credit allowed. This value prompts in transactions — so you can override it for particular ones — and is added to the transaction date to derive a payment due date. You can cater not only for a straight number of days, but also for specific monthly payment terms, as follows:

If you enter just the number of days credit allowed, then it is stored in the account record in the form "Dnn” where nnis the number of days allowed.

If payment is required by a certain day in the month following the invoice date, enter the day preceded by "M”. For example, "M10” means that payment is due by the 10th of the next month and "M20” means payment by the 20th of the next month. "M01” would mean the first day of the month.

Where you give extended credit on the same principle, then you can enter the number of months too, in the form "Mxnn”, where "x” is the number of months ahead, and "nn” is the day in the month. For example, "M210” would mean the 10th of the month after the next one.Note that "M115” is the same as "M15” — the computer takes the last two numbers as the day in the month, and the first of the three numbers (if present) as the months to lag payment.Note also that "M025” is perfectly valid, and could be used to specify that invoices up to the 15th (say) should be settled by the 25th of the same month.

Monthly Terms

Credit Limit

This is the amount that the customer, if sales ledger, is allowed to owe at any one time. On the purchase ledger this is the amount you can owe the supplier. Whether the limit is mandatory or not is controlled via parameters within the System Profiles. If the foreign currency application is in use then this value is in the currency of the customer/supplier account.

Settlement Terms

Settlement Discount

You may offer your customers, or be offered by your suppliers, a discount for early payment.If so then enter the terms and the discount percentage available here. Settlement terms are entered in the same format as that of the credit terms above. Note: that when a settlement discount is available the VAT is usually calculated on the discounted value – a parameter is available when entering the transactions direct into the ledger or, for invoice and order processing, the parameter is held within the document design.

Default Nominal

By default this option is only available on the purchase ledger supplier maintenance although it can, for Diamond and Premier users, be added to the sales ledger customer maintenance. <F4-Select> is available if required. This default is used for input of invoices and credits within the ledger. Invoicer and Order Processing will usually use the default from the stock/product record although Diamond and Premier users can configure the system to take the default from the supplier/customer.

Account On-Stop

If set to ‘Y’ then you may not create invoices for this account, although payments and credits are allowed. Note: that you cannot change the setting of this flag here, but this can be is amended through a separate maintenance option which is discussed later.

Currency

This is only applicable when the foreign currency accessory is in use. This option asks for the currency that transactions for the customer/supplier are to be entered into.Defaulting to the base currency, usually Sterling, <F4-Select> is available as required. Once the currency is set for an account it cannot be amended.

Turnover Period

Turnover Year-to-Date

Balance

The turnover and balance fields, if shown, on the accounts screen cannot be entered or changed. They are displayed for reference purposes only.