How an already running business can adopt Soft Retail Accounting?

May 25, 2018
Magellanic Cloud

Let’s say a Toys and Cosmetics Shop is already running. If business is to be shifted to Soft Retail Accounting on let’s say 25-05-2018, then we are in need to enter two things in system:

  1. Stock Positions as on 25-05-2018 and;
  2. Balance Sheet as on 25-05-2018.

Let’s say following is the stock position as on 25-05-2018 (Table-A):

stk

And following is the Balance Sheet as on 25-05-2018 (Table-B):

bs

Now download Soft Retail Accounting ready to use demo file from this link:

It takes less than 1 minute to download. Password is — mysystem

After entering the correct password, main screen will be displayed and you will press ‘Setup’ button. Following screen will be displayed.

2

First option ‘Company Setup’ is very simple. This form is already filled with sample data and you only have to replace it with your information. We here ignore this step and assume that sample data is your own information.

Our first task is to enter stock positions as on current date. But before feeding stocks, we are in need to tell the system regarding what are the trade items. Here we have only five (stock) items so we can easily feed these five items in ‘Items and Prices Setup’. Following screenshot shows that all these five items have been properly entered:

stkentered

Note: Here we have not added item pictures. Item pictures are optional. System will work if you choose not to enter pictures. You can however anytime include pictures of items. Also note that here we have entered ‘sale price’ against each item. We shall add ‘cost price’ at the time of entering opening stocks.

After having entered all the items, now we can feed opening stock positions as on current date. On the ‘Setup’ page, this is the third option and following is the completely entered ‘Opening Stock’ form:

opnstk

Now we have to enter opening Balance Sheet. It is 4th option on ‘Setup’ page. But from the setup page, we can configure Balance Sheet except for Cash, Bank and stock Accounts.

In this case, we have only stock and cash/bank Accounts in the opening balance sheet. In Soft Retail Accounting, opening stocks entry automatically debits ‘Purchase’ Account. Unsold portion of ‘Purchase’ Account is automatically reflected as ‘stock’ in the Balance Sheet. So we do not need to configure stock in Balance Sheet. But since opening Stock was basically cash purchase entry, so we are in need to bring equivalent cash i.e. Rs.19090/- as capital. Following is cash book entry for this purpose:

cash1st

Note that this entry is made in date 24-05-2018 because on 25-05-2018 this cash will be ‘spent’ in ‘opening stocks’.

For Cash in hand, Bank A and Bank B, following will be the entries.

cash2nd

Now see that due to automated features of Soft Retail Accounting, opening balance sheet form was not even employed. We made only opening stock entry and cash book entries. After these entries, Cash Book Report (from ‘Financial Ledgers’) will be reflected as under:

cb

See that opening stock entry is automatically reflected in Cash Book Report. And this report is telling nothing about Bank Accounts. Because in Soft Retail Accounting, we get separate Ledger Account for every bank account. Following are both Bank Account Reports:

Bank-A:

b1

Bank-B:

b2

Not only above, in fact we also have got ledger accounts of ‘Capital’ and ‘Purchase’ Accounts as well as inventory ledger accounts of all the five trade items . With simple opening stock entry and cash book entries, whole setup procedure not only has completed but we have received all the reporting up to final accounts. Following is the Balance Sheet of our newly entered business:

bs

In Soft Retail Accounting, we feed only the minimum of input while get maximum reporting as output. But in this example, there were only five trade items. Any running business will have far more trade items and opening stock entry will be a tedious process. As an option, you can provide us your current stock list (Table-A) and Current Balance Sheet (Table-B) in Excel format. We shall import your stocks and balance sheet in Soft Retail Accounting at no extra cost.

However we clearly state here that standalone Soft Retail Accounting functions optimally with maximum stock items between 1000 to 2000. This range is suitable for many kinds of trade/retail businesses such as Garments Shop, Cloth House, Toys Shop, Paint Shop, Tyre Shop, Spare Parts Shop, New Vehicle/Motorcycle Show Rooms etc. However large super stores will have to look for other options that also include high end client server or cloud based Soft Accounting Implementations.

Soft Accounting file of Toys and Cosmetics Shop where we made these sample entries of opening stock and configuration of opening Balance Sheet may be downloaded from this link. Password is mysystem.

 

 

What if I do not make cash book entries?

December 25, 2015
Magellanic Cloud

Soft Retail Accounting is very flexible accounting application. If you make no cash book entry in cash book entry form … you will still get all the inventory reports in “Inventory/ Stocks Books” section. It means that you will still get gross profit against each and every sales entry (the entry you make in usual sales invoice form). You will get proper gross profit data on daily, monthly or on any period as you choose basis.

However “Financial Ledgers” section will remain incomplete. Therefore if you do not find time for making cash book entries, you only need to avoid checking “Financial Ledgers” section. However “Inventory/ Stocks Books” section will still be complete and it alone also can tell profitability position of your business up to gross profit level.

Transfer of payment from one business bank account to other bank account

November 23, 2015
Magellanic Cloud

Soft Retail Accounting’s Cash Book entry form can handle as many bank accounts as you choose. But currently the feature of transfer of money from one bank account to other is not available in cash book entry form. For such a transfer, you need to make two separate entries in cash book. In first entry you will withdraw money from one bank account. In second entry you will deposit money in second bank account.

bankbankmaiin.png

However the feature of transfer of money from one bank account to another bank account through a single cash book entry will be available to any client on demand at a cost of $45.

Where to record various types of Transaction?

September 30, 2013
Magellanic Cloud

Major Brands of Accounting Software in market record transactions in different modules such as (i) Vendor process module, (ii) Customer Process module, (iii) GL module etc.

Let us state that this method is neither supported by theoretical accounting, nor it is a simple process.

But this method did introduce the integration of Financial Accounting and Inventory/Cost Accounting. Such an integration is still not possible by following theory of Financial Accounting alone.

On the other hand, Soft Accounting System has achieved integration of Financial Accounting and Inventory/Cost/Management Accounting without rotating the user into the roundabouts of vendor process/customer process/GL process etc.

3

In Soft Retail Accounting, transactions are not recorded on the basis of vendor process, customer process or GL process.

Here transactions are to be recorded on the basis of following types of transactions:

 
1- Sales/Sales Returns — to be recorded in Sale Form/Sales Return Form
2- Purchase/Purchase Returns — to be recorded in Purchase Form/Purchase Return Form
3- Any cash/bank transaction other than categories 1 and 2 — to be recorded in Cash Book
4- Any non cash/bank transaction other than category 1 and 2 — to be recorded in General Journal
 

In Soft Accounting, there is only one cash/bank book. In other systems, there are multiple cash/bank books like cash receipt book (AR receipt voucher), Cash payment book (AP Payment voucher) , Bank receipt voucher, bank payment voucher etc.

But … Soft Accounting gives a simplified solution.

In Soft Retail Accounting, there is only one Cash Book. It will record all the receipts/payments from/to ARs/APs whether in cash or through bank.

Please read the Cash Book section of our user-manual from following link:

http://www.mediafire.com/download/pecdhx5i9hzxrsf/Retail+Documentation.pdf

Thus in Soft Accounting:

AP payment will be recorded in cash book … whether paid in cash or through cheque. AR payment receipt will also be recorded in cash book whether received cash or direct deposit of money by customer in our bank. This cash book can handle as many bank accounts as you choose. Expense payment will also be recorded in cash book whether paid in cash or cheque. Any revenue other than sales will also be recorded in cash book whether received in cash or direct deposited in bank.

Cash book however will NOT record cash sales or cash purchase … Cash sales are to be recorded in sale form, cash purchase to be recorded in purchase form.

similarly, cash book will also NOT record cash sales return or cash purchase return. These things will be recorded in sale return form and purchase return form.

How to write Invoice No./Voucher No. in various Entry Forms:

September 2, 2013
Magellanic Cloud

Invoice Number in Sales Invoice Form is automatically generated and it is in sequence. When you press “New Invoice Button”, then all the columns on left pane area are automatically filled and cursor automatically goes to right table area in the “Item Code” column.

In the Purchase Invoice, the Invoice No. and date columns are not automatically filled when you press “New Invoice” button. Because unlike sales invoice, purchase invoice numbering is not your own choice. You will write the number as appears on actual purchase bill.

Similarly, in cash book also, the voucher number column is not automatically filled. You will write the actual bill number, deposit slip number, withdrawal cheque number etc.

In the sale return/purchase return forms, you will write the original sale invoice number plus original date/original purchase invoice number plus original date.

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