Finance Book Processing – An overview 

Introduction

Financial transactions originate from different functions, but require to be recorded and maintained in a central repository. Reports and financial statements can be drawn from this information.

Finance book processing is the central repository of financial information for the Ramco Enterprise series. All the accounting entries pertaining to business transactions are recorded and maintained in this repository. In addition to this, account balances are also maintained financial period wise. These individual accounting entries are consolidated and posted as GL vouchers in the Main Accounting ledger.

Financial statement like balance sheet, income statement and cash flow statement can be viewed any time in base currency. Similarly various preformatted reports can also be directly drawn from the information maintained here.

This function also facilitates creation of initial balances in base and parallel base currency for finance books. The information maintained here is posted to the tax book in batches and this financial information forms the basis for further processing.

Feature Highlights

Initial Balance entry

Initial account balances existing at the time of installation of Ramco Enterprise series, will have to be incorporated into the system. This is a one-time activity and subsequently one can only view the data and print it if required. Initial balance is created for the finance book in Base currency and parallel base currency, if applicable. Initial balance can be created either by entering manually or by uploading the details through a SOAP tool. In case of manual entry, the details can be temporarily saved and then created.

Optimization for system performance

The process of updating account balances can be optimized for system performance by scheduling the ledger and account balance updation process offline. Balances for analysis and sub-analysis codes are also maintained in base and parallel base currency. Automatic generation of GL vouchers based on – (Trn Date, Trn OU, Trn Type, Account Code, Analysis, Sub Anaysis )

Analytical Information

The facility to view account balances and comparison between account budget Vs actual is also provided. The financial information maintained, is extracted to View Default Financial statements, like Balance Sheet, Income Statement, Cash Flow Statement and Financial Ratios any time for finance books (Posting Finance book, Main Finance book and Consolidation Finance book).   The default statements have been designed as per US GAAP requirements.

Post Transactions to Tax Book

The financial information maintained in the central repository forms the basis for tax book processing. All the transactions recorded in finance book are posted to tax book for the selected financial period and financial year. Certain transaction identified by transaction types can be excluded from being posted to tax book, as they may be not be relevant or required for tax purpose. For example, depreciation calculations are different for accounting dimension and tax purpose.

List of Activities