Home – Create the first fiscal year and opening balance

Home – Create the first fiscal year and opening balance - Kyrios ChMS

Accounting is a fundamental part of the good management of any organization, however it requires some basic knowledge to use it correctly.

This guide is intended to be a help for those starting to use this module for the first time.

1. Open the exercise

If you do not yet use the accounting module, it is likely that when accessing the exercises you will have the year 2017, you should edit and change the year to 2018 (or whatever year you want):

It is on the exercises screen that you can find the Accounts Presentation report, which you must present annually to the Diocese.

2. Set up the necessary accounts

Initially we only have the base accounts, which are necessary for the Presentation of Accounts report, you must create and customize the chart of accounts according to your needs. To illustrate, let's create the Banco BCP account and the cash account a.

Create a Caixa account

Create the cash subaccount (we can have several cash accounts)

Create a Bank account

Create the Banco BCP subaccount (we can have accounts in several banks)

Create a water bill

Create telecommunications account

Create Mass stipends account

Create the net income account for the period

And now create the Net result subaccount, which is used to record the amount carried over from the previous period, and we will use it to make the opening entry.

3. Configure the required journals

The diaries are used to classify expenses according to their classification. For example, we can have a purchases journal for all purchase documents, a sales journal for all sales documents, an opening journal for the opening of the year,….

Let's create the diaries: Purchases, Sales and Opening:

4. Configure the required document types

The types of documents are all the documents that we enter into the system, such as Debt notes, Donations, Cash purchase, Credit purchase, Advance, Opening, …

Let's create the document types: Debt notes, Donations, Cash purchase, Credit purchase and Opening

5. Configure cost centers

We can define our cost centers, for example, if the Parish has 2 churches, there are 2 cost centers. Let's create the cost centers with the Parish locations, in this case Centro Church and Ponte Church:

6. Post the opening balance

When we start a new year (fiscal year) there are balances that are transferred from the previous year to this year, we must enter the opening balance to get an idea of ​​how the Parish's accounts are at the moment. We will record the opening balance of the cash and bank account against the net result account (the amount left over from the previous period). We are considering that in the cash account we have an opening balance of €500 and in the bank account €1500:

7. Post a water bill and a communications bill

8. Launch a Mass Intention

9. Consult the Analytical Balance Sheet

10. Consult the bank account statement

Auxiliary accounting notes:

Active – It consists of the company’s assets and the debts of third parties to the company. (customers)

Passive – It consists of the company’s debts to third parties. (suppliers, banks and state)

Liquid Situation – Share Capital, Reserves and Results

Costs – Costs with personnel, supplies and external services, raw materials, merchandise, etc. (class 6).

Income – Sales of products and services (class 7).

Third Parties – Customers, suppliers, banks and the state.