Introduction
This guide is an overview of the Accounting module.
- This article explains how the Accounting module works in PGM
- This article will be helpful to Accountants, Sales team, PG Champion, Club owner
Before you start
Accounting process differs based on client’s requirements and their business module. In the system we have 3 variations of the accounting:
- For Australian market
To see how to use Accounting in the AUSNZ Market, check out this article.
- For Turkish market
- Generic ( VAT / TAX based )
To enable a certain version please contact the Contract & Accounting team.
Feature description
To access the Accounting module, go to PGM -> Accounting
The Accounting module contains 6 subtabs:
Chart of accounts
List of accounting numbers. Every expense, transaction etc. must be assigned to a specific account. Chart of accounts contains the following columns:
Number – internal accounting number which is used for the current accounting of economic operations (grouping of operations to reflect the state and changes of a specific asset, liability or balance (costs, revenues, losses or profits)),
Accounting number is not the same as the bank account number!
Name – name of the accounting number,
Related with club – information whether this accounting number is related to the club.
To create a new accounting number, click the “Add new account button”. Fill up Name, Number and decide whether this number is related to the club.
Schemes
Schemes are accounting rules. They decide how certain transactions should be accounted. Every type of transaction has its own schema:
- membership fee,
- admin fee,
- joining fee,
- penalty fee,
- membership discount,
- admin fee discount,
- joining fee discount,
- annual fee.
Freezes are linked with one schema.
There are 2 types of schemes – for charges and corrections (Charge accounting codes) and for transactions (Transaction accounting codes) - both incoming and outcoming.
In Charge accounting codes there are 2 sides: for charges and for corrections.
Payment Plans have configured schemes, which can be selected and associated with certain transactions during their creation. It’s the Accounting configuration module in Payment Plan configuration view.
Discounts have their own separate accounting configuration on Discounts view.
Same goes for the Products configuration.
In Transaction accounting codes, schemes depend on payment type (method of payment).
Accounting list
List of transactions (accounted data).
Accounting period
It's a reporting frequency in which certain client works. Usually the scope is 1 day or 1 month, but there are countries, e.g. Poland, where reports are generated on a quarterly basis. Intervals for this can be configured.
Reports have 4 statuses:
- Open – data is being collected, user transactions can be added,
- Closed – no data can be added, deleted, or edited,
- Processed - selected period was already accounted,
- ProcessingFailed - during the accounting process some errors occurred, e.g. because the payment plan didn’t have schemes selected.
To add a new accounting period, click Add New Period and select it from the calendar.
Invoices
List of invoices, containing basic information about them. Certain transactions are present on invoices, we can search them by providing transaction id in the search bar above list.
Print Credit Note – it generates a summary report which contains, among others, information about all invoice corrections for the period in question.
Configuration
It’s a module similar to PG Support Tools. Clients can use it to create manual corrections, e.g. credit notes. Use this option with caution.
How to account?
When the accounting period ends, it is required to close that period. Clients must generate all reports for that period and then close it. It is not desired to have financial status changed by new transactions or other amendments.
Accounting reports are generated based on:
- user transactions,
- accounting configuration,
- accounting period,
- accounting documents: invoices, book entries.
How to account for a certain period?
1. Go Accounting period
2. Choose period to account
3. Press 3 dots
4. Press Run accounting
5. Generate needed reports - Accounting Summary Report
6. Close period -> 3 dots on selected row -> Close period
You can generate a summary report, which contains summary data, such as: balance, accounts number and amounts, invoices total etc. For Turkish accounting there is EOP, which can be created in the accounting module (Accounting period).
For VAT users (mostly european clients) there is a Accounting Summary Report located in the Reports tab. For Tax users GreatPlainsReport can be generated, also located in the Reports tab.
If account numbers have been changed after a particular period has already been closed, in order for the new data to be included in the Summary Report, the accounting must be run again and a new report generated.
Automatic period closures are not used and advisable, as often various adjustments are made manually in the first days of a new accounting period.
How to correct an invoice?
In case a certain period is already closed and it is needed to correct some transactions, a correction is possible.
To correct a transaction, add a manual ChargeCancellation type transaction, that points to the original, incorrect one within the closed period. Credit Note, which is a correction, is created. It has the opposite amount to the original transaction and is accounted on “minus” accounts.
Credit notes can also be created manually in the Configuration tab. It is possible to delete them, but at your own risk.