Posted by Glen Mund on Wed, Jul 21, 2010 @ 12:43 PM
I read an interesting blog article by Austin Merrit of Software advice with the above title. It is an interesting article and makes many valid points but I have a slightly different take.
http://www.softwareadvice.com/articles/accounting/is-horizontal-accounting-software-dead-1062310/
1) What is the definition of Horizontal Software?
Most software publishers if not all now provide extended solutions/modules for specific industries. So the core system may not have been designed for a specific industry but the extended solutions are. Plus Computer Solutions is a Sage Accpac reseller and Sage and Plus have vertical solutions for the distibution, service, manufacturing, retail, Not for profit, etc industries. The core Sage Accpac modules might be consider at horizontal solution as they were initially not developed for one specific industry but for many different industries. This has created a great deal of functionality in the application that allows the application to be useful in many different environments. In fact the core modules have been developed to such an extent that they are usually far more functional than the core of a vertical software solution. We usually find that our General Ledger, Accounts Payable, Accounts Receivable and Business Intelligence modules are far more comprehensive than any vertical software solution.
2) Is Stand alone software the same as Horizontal software?
In my opinion Stand alone software is simply a piece of software that does not integrate to any other application. Stand alone software is often designed specifically for a vertical industry. I would say as a reseller we see clients and prospects using vertical invoicing, customer management, estimating and quoting, time and billing systems that were designed for there industries but do not integrate easily to back office systems more often than a stand alone horizontal system.
3) Software Vendors are verticalizing there solutions.
Many of the major players he mentions are but many are not. In reality they are simply marketing to industries where there solutions have a strong presence. In some cases the solution may be strong in that vertical industry but often we find that it is just a perception issue and the product often does not meet the mustard test when compared to a non vertical solution.
In summary I personally do not think horizontal solutions are dead nor do I think they will ever die. They will just be enhanced and modified to meet the needs of vertical industries or extensive marketing to industries they are well suited to will be increased. In that sense the name horizontal solutions may disappear but some of the best vertical solutions are and will be built on the foundation of a horizontal solution. Alternatively I do think that stand alone solutions are dieing a slow death and we will eventually find more and more software developers will build solutions on common platforms so that integration will become less of an issue.
Posted by Bonnie Wittmeier on Fri, Jul 16, 2010 @ 11:06 AM
Sooner or later, it happens. You run your AP Aged Payables Report, and compare the total to the balance in your GL, (AP trade account), and they are not equal. What now?
A reconciliation will need to be done, there’s no getting away from that. You will need to do a comparison between all the transactions that have gone through AP and cross them off against all the entries in the GL Listing to find out which one(s) are different and/or missing. This can be a tedious process. However, there are a couple of tips and tricks that might help short-circuit the task.
- Ensure all your AP batches have been sent to the GL. (AP Periodic Processing / Create GL Batches). Then, POST all the AP batches in the GL. Re-run your reports to see if we are now in balance.
- Run your reports as of a future period, such as the end of the current fiscal year. Sometimes AP transactions get posted to prior periods. After they get sent to the GL, the period may be adjusted to a current period before posting. (So as not to affect an already published financial statement, for example, or because that period has already been closed). Therefore, the imbalance may only be due to a fiscal period discrepancy, and will even out at a later period. This is not normally a concern unless it crosses over a year end.
- Under GL Transaction History, select the AP trade account. Change the source code to different modules besides AP and check if there are any entries which originated from somewhere besides AP. These entries may be the cause of the variance.
If these 3 tricks don’t reveal the difference between your subledger and your GL, a full reconciliation will be required. Here’s how to make that process simpler:
- Locate the last fiscal period where the AP and the GL were in balance. Use that as a starting point to begin your reconciliation.
- Identify the variance amounts for each subsequent period since AP & GL were in balance.
- If several subsequent periods are out of balance by the same amount, locating and adjusting the first of those periods will bring the following ones into balance.
- If the periods are out of balance by different amounts, then there are variances in each period that need to be identified.
| Period |
AP |
GL |
Variance |
| 04 |
120,000 |
120,000 |
0 |
| 05 |
114,500 |
118,000 |
-3,500 |
| 06 |
95,000 |
98,500 |
-3,500 |
| 07 |
108,000 |
106,500 |
1,500 |
| 08 |
87,800 |
98,700 |
-10,900 |
In this example, period 4 is balanced, and there are discrepancies in periods 5, 7 and 8. The reconciliation process needs to begin at period 5. Depending on the adjustments required to bring period 5 into balance, (the AP may need to be increased, or the GL amount decreased, or some combination of these), the variance amounts of periods 7 and 8 may be changed, therefore it will be imperative to start the reconciliation at the earliest period that is out of balance.
- Print the GL Transaction Listing for the AP trade account for period 5. Then print either of the AP Transaction reports – Vendor Transactions, or GL Transactions – depending on which one works best for your particular set of data.
- Compare each of the entries in the GL to each transaction on the AP report. Once each line item has been compared and crossed off with its match, you should be left with the ‘orphan’ entries – your variance. You could also export each of these reports into excel and use some sorting and comparison formulas to assist with this task.
- Now that you have the source of your discrepancy, you will be able to correct the imbalance by making the appropriate adjustments.
This process is identical for the AR subledger as well.
There are some settings which can be optimized for reconciliation purposes.
- Ensure your AP trade account is set to be a ‘control account’ which allows only AP transactions to be posted into it. (GL Accounts / Accounts – select ‘control account’ and then add ‘AP’ to the ‘subledger’ tab)
- Check your AP Setup / GL Integration / Transactions. Set your Detail Transaction Types (invoice, credit note, payment, etc) to have easily recognizable fields sent to the GL Detail Reference and GL Detail Description columns (vendor number and document number for example). This will make identifying specific AP transactions easier in the GL Transactions Listing report.
Give us a call if you need assistance with this!
Posted by Glen Mund on Tue, Jul 13, 2010 @ 02:29 PM
When I speak to clients and prospects in the distribution sector, and ask about their inventory problems, the most common response is the lack of inventory accuracy. Most often this means the quantity of inventory on the warehouse floor does not match the records in the ERP or other system. Obviously this is very critical functionality that an ERP system can provide but the functionality requirements should not end here.
Other critical inventory accuracy functionality that should be expected from your ERP software are:
Inventory Value
- Obsolescence : What is the value of obsolete inventory? This reporting assists with the determination of how well an organization manages its inventory and how accurate the existing demand forecasts are. Perhaps product quality is poor. An ERP system should help make this type of assessment.
Check out the rest of my lastest article on the Sage ERP blog at; http://blog.sageerpsolutions.com/inventory-accuracy/
Posted by Dee Dutton on Wed, May 19, 2010 @ 11:34 AM
The BC HST is imminent! Are you prepared? Do you know the supply and transition rules for your business? Do you know the reporting requirements, especially in relation to the transition period?
I participated in an HST Webinar presented by the CRA today. There was a lot of valuable information and they covered many of these important topics. The CRA also provided a slide show document as well as a reference document that links to specific documents on their website. All the pertinent information can be found on CRA's website at http://www.cra-arc.gc.ca/gncy/hrmnztn/menu-eng.html but I have mentioned some of the topics covered during the webinar below;
Key Dates
- May 1, 2010
- Date that HST would generally apply to amounts that become due or are paid, without having become due for property and services, supplied on or after July 1, 2010
- July 1, 2010-Implementation Date
- Date that HST would generally begin to apply
- November 1, 2010
- Date relevant to exchanges, returns and self-assessment
Changes to Place of Supply
- There is now less reliance on the suppliers' location and a greater reliance on where the consumer of the intangible personal property or service is located
Transitional Rules
- HST would apply when goods are delivered and ownership is transferred on or after July 1, 2010 and consideration becomes due or is paid without having become due on or after May 1, 2010.
- HST would not apply when ownership is transferred or the good is delivered before July 1, 2010 regardless of when consideration becomes due or is paid without having become due.
Exchanges & Returns of Goods
- Special rules apply to exchanges made on or after July 1, 2010 and before November 1, 2010 for goods purchased before July 1, 2010.
- Exchanged good exceeds what was paid for the original good, then the HST would apply to the difference; and
- Exchanged good is less than or equal to that paid for the original good, then the HST would not apply.
- HST would apply to all exchanges on or after November 1, 2010.
Services - General Rule
- HST would apply to any consideration due or paid on or after May 1, 2010, for a supply of a service, when the consideration relates to the portion of the service performed on or after July 1, 2010.
- For Example: A landscaping service for June and July 2010. 40% of the service is performed in June 2010. It was invoiced in August 2010.
- HST would apply to 60% -the July portion
- GST would apply to 40% -the June portion
- If 90% or more of the service is performed before July 2010, no HST would be payable on the amount for the service.
Other topics covered include:
- Intangible Personal Property
- Sales to Government
- Indian/Indian Bands
- Leases & Licenses
- Services - Special Rules
- Reporting
You can sign up for these webinars (there are 3 left) yourself or view webcasts at: http://www.cra-arc.gc.ca/gncy/hrmnztn/menu-eng.html
Posted by Glen Mund on Mon, May 03, 2010 @ 05:14 PM
I am now a contributing blog author to the The Business Management Blog sponsored by Sage. Please check out my first article "Have Your Outgrown Your Current Accounting Software". I would love your feedback and your experiences.
http://blog.sageerpsolutions.com/have-you-outgrown-your-current-software-solution/
Posted by Plus Sales on Fri, Apr 30, 2010 @ 01:04 PM
by Brian Morris brian@plus.ca
Are you losing valuable time and resources to inefficient reporting? In a typical month, how many hours do you spend manipulating your current data to make it more meaningful, or to integrate it with other applications? Even when custom Crystal Reports have been developed, many Accpac users have made it known that they spend a significant amount of time on manual reporting chores in Excel. I'd like to tell you about an offering from Sage, which aims to address these very issues.
Sage Accpac Intelligence is an exciting enhancement to Accpac ERP, which will illuminate your data, and allow you to make better-informed strategic decisions. It is a powerful report designer and data analysis tool, but since it is based on Excel, most spreadsheet users will have no problem learning how to use the program. In addition to reporting on your Accpac data, you can easily link up to outside data sources, thus preventing the need for manual consolidation. Other key features include:
- Dashboards can be quickly setup, giving you a holistic view of the company's vital signs
- Pre-defined reports templates are included, and can be modified to better suit your specific requirements
- Scheduling automation allows you to run resource-intensive reports during off-peak hours, and email them to authorized recipients.
A FREE 1 user license of this Report Manager component of Sage Accpac Intelligence is available with all 5.6 versions of Accpac, and Sage University is also offering an online training course at no charge. For more details, contact me and let's unchain your data.
Posted by Alison Boons on Fri, Apr 09, 2010 @ 06:28 AM
Yesterday was our first User Group Meeting & our first HST Implementation meeting.
Overall, it was a huge success! With over 50 attendees and LOTS of information we are excited about our 2nd Date for the HST User Group Meeting that will be held on May 13th, 2010 from 8:00am-11:00am (Location TBD).
Find out what you missed & what you can look forward to if you are attending our May 13th session.
http://www.youtube.com/watch?v=3mWSbgPCalc
http://www.youtube.com/watch?v=RCN8SgTb6Bo&feature=channel
To register for our May 13th HST User Group Meeting ($35.00 p/person unless you have a current TSP Contract) visit; http://www.plus.ca/HSTUserGroupMeetingMay
Please keep in mind that some organizations will have to start charging the HST as of May 01, 2010 & it will affect everybody as of July 01, 2010. If you would like assistance from us on implementing the HST at your organization, call us now to start getting your appointments booked!
If you have any questions or would like more information about the HST & how it affects you, call our office today at 604.420.1099.
Posted by Glen Mund on Tue, Mar 30, 2010 @ 10:43 AM
Sage has released a new Product Update for Sage Accpac ERP 5.5 that effects there are several program fixes as well as some new features. Please check out our website for more information www.plus.ca
Posted by Plus Sales on Fri, Mar 12, 2010 @ 01:13 PM
by Mitch McNicol, mitch@plus.ca
See how one CEO stands up against economic adversity.
http://www.youtube.com/user/SageSoftwareNA#p/u/0/HAu2ebzqVC8
Sage Extended Enterprise Suite streamlines internal operations, helping sales, marketing, finance, and operations work as a single team to keep customers happy and your business competitive. By deploying a single platform, you'll eliminate multiple data entry points, reducing the chance for error and giving staff a consistent view of each customer from order to delivery.
Sage Extended Enterprise Suite helps you by:
- Uniting customer-facing systems, like sales and customer service, with back-office financial and operations staff for improved data accuracy
- Managing the customer acquisition lifecycle from lead generation to initial contact through sales quotes and order delivery
- Offering core functionality, including Financials, Distribution, CRM, and Inventory Management, and making it simple to add functionality as needed.
For more information or to find out more about the Sage Accpac Enterprise Suite, contact our office today.
Posted by Glen Mund on Wed, Mar 10, 2010 @ 01:19 PM
As mentioned in the previous post, below is some information provided by the CGA that every business should consider so that they are best prepared for the HST.
To begin the preparation process, consider all facets of an organization that are affected by sales taxes (for example, accounts receivable, accounts payable, payroll, purchasing, forecasting and budgeting); this can be a very time consuming task. The benefit of spending time preparing for implementation is a reduction in costly errors, surprises for overlooked issues, and future audit exposures.
Below are a number of issues businesses need to consider for the sales tax implementation.
Collection of Sales Taxes
- Amend Software and/or tax table used to generate invoices, debit and credit notes to accommodate additional tax rates/codes.
- Amend automated system-generated entries (e.g. monthly inter-company charges, monthly rent charges or management fees to reflect the sales tax codes/rates).
- Consider the impact of harmonization on real property contracts during the transitional period and after implementation.
- Determine if prepayments have been made before the implementation date. The transitional rules may be used to determine the tax rate applicable in these situations.
- Develop special codes for point-of-sale rebates for the provincial component of BC HST and OVAT if applicable.
- Do a product and service sales tax analysis. Many goods, services, intangible personal property and real property non-taxable under the old Ontario sale tax legislation will now become taxable as a result of harmonization
- However, unless a supply is specifically excluded from BC HST or OVAT (e.g. books, children's clothing), or under a specific Ontario or BC levy post-harmonization (e.g. in Ontario certain insurance premiums), the sales tax status will be consistent with current GST rules, which will simplify tax administration for businesses.
- Do not delete or deactivate old tax rate codes since it may be necessary to use them after implementation during the transitional period.
- Follow transitional rules for volume rebates, promotional allowances, price adjustments, goods returned or exchanges after the July 1, 2010 implementation date and guidance for goods in transit on July 1, 2010.
- Modify tax tables for Internet web sites. All GST registrants will automatically become registered to collect BC HST and OVAT.
- Review ongoing or long-term contracts that straddle the harmonization date to ensure the correct sales rate is applied (e.g. service agreements, licenses, memberships and leases).
- Update point-of-sale terminal or cash-register software.
Recovery of Value-Added Taxes Paid (Input Tax Credits and Rebates)
- A business defined as a "large business" (over $10M taxable sales) or a financial institution cannot claim input tax credits for the provincial component on specified restricted expenses. Restrictions will last up five years with a three-year phase out.
- Develop updated or new tax tables/codes for accounts payable systems that automatically record input tax credits or rebates based on embedded taxes. Prepare to code payables for restricted versus non-restricted expenses.
- Do not delete/deactivate old tax rates as they may be required in some situations. If your system can only accommodate one or a limited number of tax rates, develop a manual system to record sales taxes correctly during the transitional period.
- During the transitional period, implement procedures to ensure only the value-added tax paid is recovered. Develop an override procedure to use in instances where old tax rates are charged in error.
- Develop a system to track the federal and provincial components of HST if you are part of the MUSH sector (municipalities, universities, schools, and hospitals) or qualifying non -profit organization.
- Evaluate and update periodic system-generated payments to apply the new taxes
- Make adjustments to the remittance percentages if you are a small businesses or public service body using the simplified remittance methods
- Modify employee expenses reimbursement and allowance software or pre-printed forms for not only the new rates but also the restricted expenses and possibly the use of factors. In addition, watch for special transitional rules for expenses reports that straddle the implementation date.
- Selected listed financial institutions must adjust formulae included in the Special Attribution Method calculation if applicable.
Other Considerations;
- Revise Cash flow projections.
- Update budgets and forecasts.
- Modify purchase orders with pre-printed sales tax information or system generated purchase orders to accommodate the new taxes, e.g. the goods for resale exemption will no longer apply in Ontario or British Columbia
- Modify pre-printed price lists or Internet websites containing sales tax information.
- Develop a system to track bad debt adjustment, tracking the tax from the original transaction
- Develop a process to change taxable benefit remittance rates for the 2010 and 2011 taxation years, if applicable.
- Modify documented procedures for how internal tasks are performed whether automatically or manually.
- Additional calculation may be required for the embedded tax content subject to the change-in-use provisions.
Plan to do a test run of sample data for all modified systems as a result of the numerous changes and revisions. This will reduce the potential for error and surprises when the systems are activated on July 1, 2010.
For more information & to find out how to update your Sage Accpac ERP System join us at our our HST User Group Meeting on April 08, 2010 from 8:30am-11:00am. To register & more information visit; http://erp.plus.ca/HSTUserGroupMeeting