Accounting

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ACCOUNTING

ACCOUNTING GUIDE

Revision 1 – September 2019

Table of contents

Contents

 

Table of contents 2

2. Terms used in this guide 6

3. Overview 9

3.1 About Constructor 9

3.2 Deleting Transactions 10

3.3 Filtering tools 10

4. Naming Conventions 11

4.1 ID’s 11

4.2 Descriptions 13

5. Accounting 15

5.1 Overview 15

5.2 Chart of Accounts 15

5.2.1 Moving Accounts Within the Chart of Accounts 17

5.2.2 Renaming an Account 18

5.2.3 Creating a New Postable Account 19

5.2.4 Creating a New Header Account 21

5.2.5 Deleting an Account 21

5.3 General Ledger default Accounts 22

5.4 Opening Balances 23

5.4.1 Supplier Opening Balances 23

5.4.2 Client Opening Balances 24

5.4.3 General Ledger Opening Balances 25

5.4.4 Bank Opening Balances 27

5.5 Journals 29

5.5.1 Subsidiary Journals 31

5.6 Budgets 33

5.7 BAS Worksheet 35

5.7.1 BAS Configuration 36

5.7.2 Worksheet – GST 37

5.7.3 Worksheet PAYG 40

5.7.4 BAS Pages and Summary 41

5.8 Year End Processing 42

6. Banking 43

6.1 Creating a Bank Account 43

6.2 Bank Accounts 46

6.2.1 Reconciling the Bank 47

6.3 Payments and Receipts 48

6.4 Transfer 48

6.5 Generate EFT File 49

7. Accounts Receivable 51

7.1 Creating a New Client 51

7.2 Progress Claim Methods 54

7.3 Claims 57

7.3.1 The Claim Summary 57

7.3.2 Create a Manual Claim 59

7.3.3 Claiming a Progress Claim Stage 61

7.3.4 Claiming a Deposit prior to setting a Contract price 63

7.3.5 Claiming a Variation 65

7.3.6 Previewing, Printing and Emailing a Claim 67

7.4 Credits 68

7.4.1 The Credit Summary 68

7.4.2 Create a Manual Credit 70

7.4.3 Previewing, Printing and Emailing a Credit 71

7.5 Receipts 72

7.5.1 The Receipt summary 72

7.5.2 Create a Manual Receipt 74

7.5.3 Create a Receipt to a “Sundry” Debtor 76

7.5.4 Receipting a Progress Claim Stage 77

7.5.5 Previewing, Printing and Emailing a Receipt 79

8. Accounts Payable 80

8.1 Creating a Supplier/Trade 80

8.2 Invoices 85

8.2.1 The invoice summary 85

8.2.2 Create a Manual Invoice 87

8.2.3 Recipient Created Tax Invoice 91

8.2.4 Automatic invoicing 92

8.2.5 Authorising Invoices 94

8.2.6 Partly Authorising Invoices 95

8.2.7 Copying Invoices 96

8.2.8 Scheduling Invoices 97

8.3 Credits 99

8.3.1 The Credit Summary 99

8.3.2 Matching a Credit to an Invoice 101

8.3.3 Creating a Credit with No Matching Invoice 103

7.3.3 Authorising Credits 104

8.3.4 Matching an Invoice to a Credit 105

8.3.5 Copying Credits 106

8.4 Payments 107

8.4.4 The Payment Summary 107

8.4.2 Creating a Manual Payment 109

8.4.3 Create a Payment to a Sundry Creditor 112

8.4.4 Creating Payments from the Invoice and Credits Summary 113

8.4.5 Remittances and EFT File Generation 115

8.5 Taxable Payments Report 117

9. Reports 119

9.1 General Ledger Reports 121

9.1.1 Chart of Accounts 122

9.1.2 Trial Balance 123

9.1.3 Profit and Loss 124

9.1.4 Balance Sheet 125

9.1.5 Cash based GST Transactions 126

9.1.6 GL Account Movement 127

9.1.7 GST Transactions 128

9.2 Accounts Receivable Reports 129

9.2.1 Aged Debtors Trial Balance 129

9.2.2 Accounts Receivable Statement 130

9.3 Accounts Payable Reports 131

9.3.1 Aged Creditor Trial Balance 131

9.3.2 Insurance Details 132

9.3.3 Supplier / Trade Transaction Summary 133

9.3.4 Taxable Payments Annual Report (TPAR) 134

9.3.5 Variance Code Transactions 135

 

Terms used in this guide

  • Accounts – an Account refers to Assets, Liabilities, Income, Expenses and Equity, represented by individual codes.
  • Accrual – an accounting method that records income and expenditure when they are incurred, regardless of when funds change hands.
  • BASBusiness Activity Statement – a form submitted to the Australian Tax Office by registered businesses entities to report their tax obligations.
  • Budget – an estimate of income and expenditure for a period.
  • Cash Based – an accounting method where income is recognized when cash is received and expenses are recognized when they are paid.
  • Chart of Accounts – a listing of all Accounts used in your Company’s General Ledger
  • Claims are an Accounts Receivable tax Invoices. They have been named Claims in Constructor to reduce confusion between Accounts Payable Invoices. These can be generated automatically from Progress Claim Methods or created manually.
  • Clientsconsist of all of your Accounts Receivable business contacts that possibly owe you money.
  • Company – Refers to your Company. This is opposed to Clients and Suppliers/Trades.
  • Component – A Component in Constructor represents either materials or labour.
  • Contract Price – the agreed price of the build (before the Client requests Variations).
  • Creditors – are all of your Accounts Payable business contacts that the Company can owe money to.
  • Credits (Accounts Payable ) – When something previously entered into your Accounts Payable (Purchase) Ledger as an expense needs to be returned.
  • Credits (Accounts Receivable) – When something previously entered into your Accounts Receivable (Sales) Ledger as income needs to be returned.
  • Debtors – consist of all of your Accounts Receivable business contacts that possibly owe you money.
  • EFT fileElectronic Funds Transfer – a system of transferring money from one bank Account directly to another.
  • FieldFields are where you enter your data, an Entry is made up of different Fields.
    Report – A Report in Constructor is a document generated from information stored in Constructor.
  • Filtering – A Filter is a keyword or value used to refine lists of information. Filtering refers to the process of applying a Filter.
  • Formula Formulas are collections of Components that together provide a per unit cost estimate for materials and labour.
  • General Ledger – a set of numbered Accounts a business uses to keep track of its financial transactions and to prepare Reports.
  • Grid – The Grid refers to the table of Entries on a Screen made up of rows and columns.
  • GSTGoods and Services Tax – a value added tax levied on most goods and services sold for domestic consumption.
  • ID – a unique identifier for every new Project, Account, Client, Supplier etc AND every transaction.
  • Invoices are Accounts Payable tax Invoices that are received from Supplier / Trades. These can be generated automatically from Purchase Orders or created manually.
  • Journals – a record of financial transaction – these can be automatically generated by the system or manually entered by the user.
  • Naming Convention – formalizing a standard format for creating new ID’s and Descriptions so that information can be more easily and quickly found when filtering / searching.
  • Opening Balances – The first entry in a Company’s Accounts at the beginning of a new Financial Period or when a Company is first starting up.
  • Orders are Accounts Payable Purchase Orders. These can be generated manually or automatically.
  • PAYGPay As You Go – a withholding tax which requires you to pay incremental amounts of your business’s income to the Australian Tax Office.
  • Payments are Accounts Payable remittances that are paid to Supplier / Trades. These can be generated automatically from Invoices or created manually.
  • Progress Claim Stages – the stages of a build where money can be claimed from the Client.
  • Projects – A Project refers to the job that a Client has employed you to do.
  • Receipts are Accounts Receivable Receipts. The Receipts Summary screen lists all of the Receipts made by the Company. These can be generated automatically from Claims or created manually.
  • Reconciliation – an accounting process that uses two sets of records to ensure figures are correct and in agreement.
  • Remittance – a Report produced for Creditors to send with any Payment made from the system.
  • Statement – a Report produced for Debtors to show how much they still owe.
  • Summary – A Summary is a more detailed output of the selected Entry or open Screen. Entries can have multiple Summary Tabs, each detailing a particular category of that Entry. These categories are used as the tab name for the Summary.
  • Sundry Creditor – a person or business who you owe money to but is not set up on your Supplier / Trades list.
  • Sundry Debtor – a person or business who owes you money but is not set up on your Client list.
  • Suppliers / Tradesare all of your Accounts Payable business contacts that the Company can owe money to.
  • TPARTaxable Payments Annual Report – a report submitted to the Australian Taxation Office showing Payments to Contractors.
  • Transactions – are all the accounting entries made in Constructor and include (but are not limited to), Journals, Claims, Receipts, Invoices, Payments.
  • Transfer – movement of funds from one Bank Account to another.
  • User – A User is someone from your Company who uses Constructor.
  • Variations – any amendments the Client has requested that are in addition to the agreed Contract.
  • Year End – the end of the financial year.

Overview

 

About Constructor

Constructor is a fully integrated Sales, Estimating and Accounting software package for the Construction industry. Constructor Management Software was developed by builders to work for builders the way builders work. The program flows logically from step to step following the building process. As a builder, you will find it intuitive to use because it works the way you do.

Primarily it is used by builders in the residential home market who agree with our philosophy that:

“Major business efficiencies can only be found by implementing a software system that integrates all aspects of a business into a single cohesive database application.”

The Constructor Management Software completely streamlines the entire business work flow for builders, providing Estimating tools that allow accurate Estimates to be built, quickly, using your own predefined Formulas and Components – to build your Bill of Quantities (BOQ).

Deleting Transactions

Any transaction that has not been Reconciled within Constructor can be Deleted by a user with the appropriate permissions. Deleting transactions can also be known as Reversing Out the transactions. For example, if an Invoice is paid incorrectly, the Payment can be Deleted and the fully paid Invoice will then revert back to being in an Authorised status. If the Invoice was automatically generated from a Purchase Order, the Invoice can be Deleted and the Purchase Order will revert to an Entered Status. Similarly, Receipts can be Deleted changing the Claim from a Fully Received Status to an Entered Status.

Filtering tools

There are many filtering tools in the Accounts summary screens that assist you with the everyday processing of transactions. All filtering tools can be used in conjunction with any or multiple other filters. These include:

  • Filter Bar (1): This is an alpha/numeric filtering tool that allows you to filter on specific numbers or text in specific columns. The filter bar is found in many summary screens throughout Constructor.
  • Search buttons and Drop-Down menus (2): These filters allow you to filter on specific items such as all the transactions for a specific Project, Cost Centre or Status. For example, you can use the Project Lookup to filter on all transactions for a specific Project.
  • Clear filters (3) – These two buttons can be used to clear all filters on the Search buttons, drop downs and Filter bar.

Note: you can sort the data alphabetically or numerically, ascending or descending by clicking on the title of the column which you wish to use to filter the data (4).

Naming Conventions

It is strongly recommended that you establish a Naming Convention for the ID and Description fields when creating new Projects, BOQ’s, Components, Formulas, Clients and Supplier/Trades. This will make finding your information quicker and easier.

ID’s

When opening tax Invoices, Claims, Payments and Receipts in Constructor, a numbering system is applied to them for an ID. This is a generic code that chooses the next available number and inserts the number as the ID for that tax Invoice, Claim, Payment or Receipt. This ID is full editable and the user can apply whatever ID they like to the Invoice. For example, when you create an Invoice that you have received from a Supplier, it is common practice to use the Suppliers Invoice number as your Invoice ID in Constructor. This also allows for easy filtering on Invoice ID’s. If your workplace currently has an ID system in place for any tax Invoice, Claim, Payment or Receipt, there is no need to change that system once Constructor is introduced.

Constructor can create a default ID for each Transaction. However, for ease of use, using an “In house” ID Naming Convention can be advantageous. You can configure this numbering system in System, Automatic Numbering Customisation.

To see any Automatic Numbering Customisations that are already set up in the database, choose a Numbering Entity (1). The Delimiter field (2) is the symbol being used to separate out the Numbering Elements, in this example, it is a dash (-). Available Numbering Elements (3) lists out the items that are available to use in your new ID and Numbering Elements Used (5) are the items that have been chosen (move items from one screen to another using the arrows in the middle (4)). If you want to re-order the Numbering Elements Used, use the up and down arrows (5):

Descriptions

Names and Descriptions should also have a Naming Convention. An effective Naming Convention will make it much easier and quicker to choose AND prevent duplications. It is recommended that you come up with a Naming Convention for each section of Constructor where you regularly need to search. Here are some examples:

  • Clients – Surname, First name/s, Town. This will allow you to search by location if you cannot remember the Clients name.
  • Suppliers – Company name / Surname, First name/s, Town (for Contractors)
  • Projects – Come up with a combination of abbreviations that are always entered in the same sequence. For example; Surname, initials of the Project Manager or Sales Person, Building Design Number. Whatever will help to make searching easier.
  • Formula – You are likely to have many similar Formula, so think very carefully about how you want to distinguish them from each other via the Description field. This example is for bathroom module formulas:

  • Components – Putting the dimensions in the Description may be something you want to consider. For example, you are likely to have many ovens in your Component List. If your Component descriptions look like this:

You won’t have a clue which is the one you want until you open each of them in turn. If however, your Component list looks like this:

You can find your Component with ease.

Accounting

Overview

This guide is designed to step you through the process of setting up the accounting section of Constructor, ready for use in your everyday business needs. More and more users everyday are switching to Constructor accounting to assist them with accurate Project cost control.

When deciding on starting your accounts in Constructor, you will need to select a Commencement Date. From this date forward all transactions will need to be recorded in Constructor. Therefore, all account balances including General Ledger accounts and bank balances will need to be set. It is a good idea to set this date following a BAS period so all of your transactions for the previous BAS period are contained in your original accounting system. Additionally, all Suppliers, Clients and Projects that will have transactions recorded against them after the Commencement Date will need to be entered into Constructor. Projects do not need a BOQs for this purpose but can have budgets entered against them if you wish.

Entering historical data for Suppliers, Clients and Projects is a matter of personal preference. Entering old financial information into the system can be time consuming, but can also be worthwhile in being able to accurately preview WIP (Work In Progress) and budgeting information that you would otherwise not have for those Projects In Progress.

The following sections of this guide will step you through the process of setting up balances for Suppliers, Clients, Bank Accounts and all other General Ledger Accounts.

Chart of Accounts

Your General Ledger Chart of Accounts should contain all required Accounts to run your business. It is a good opportunity to consult with your accountant to see if there are any minor changes they would like you to make to your existing Chart of Accounts.

To edit your Chart of Accounts in Constructor, from the Main Menu go to Accounting, General Ledger, Chart of Accounts:

The Chart of Accounts is made up of Headers (1) and Postable accounts (2). To open the main Header account, click the plus (+) sign at the front of the Header account. This will expand the Header to expose Accounts inside the Header.

All Headers and Postable Accounts can be renamed and moved. Any Account that has no transaction history can be deleted.

Moving Accounts Within the Chart of Accounts

To move any Account within your Chart of Accounts, highlight the Account you wish to move (1) and by using the arrow buttons on the right hand side of the screen (2), adjust your Account to position it in the required place. Once the Account is in place, click the Save Chart of Accounts button (3).

Renaming an Account

If you are redesigning you Chart of Accounts, you may wish to rename the Accounts already there. To rename an Account, either double click it or highlight it (1) and click Open (2).

Change the Description (3) and if necessary, the Account ID (4) (keep in mind your Naming Convention):

Creating a New Postable Account

When a new Account needs to be created, highlight the Header (group) Account that you would like to place the Account in (1) and click the New button (2). This will open a blank Account for you to fill in the details. Enter a Description and ID (3) (keep in mind your Naming Convention).

The Classification will default from the Header Account. Each Account has a Default GST code set for Acquisitions and Supplies. These codes are used in Invoices and Claims when adding in a G (General Ledger) line onto the Claim or Invoice. (i.e. When this Account is selected, the corresponding tax code will then be used). It is also used for the automatic BAS report calculations. Save & Close the Account, UNLESS it is a new Bank Account (see below).

If it is a new Bank Account, tick This represents a Bank Account (1). Fill in all the Account details (2). If this Bank Account already has a balance, you may want to enter in the last reference numbers so that when you start to record Payments and Receipts, the system knows the next number to use (3):

The Account will be created at the bottom of the group in which you created it (1). Use the Up and Down arrows (2) to move it to the desired position and click Save Chart of Accounts (3):

Creating a New Header Account

To create a Header (group) Account, follow the steps above to create a Postable Account and move it to the required position using the arrow buttons and Save. Once in position, open the Account and change it to a Header (group). Save & close. Other Postable Accounts can now be moved into the new Header (group).

Deleting an Account

Any Account within your Chart of Accounts can be Deleted as long as it has had no transactions posted to it and it is not linked as a default Account in your Company, G/L Default Accounts. Highlight the Account (1), click Disable (2). If it can be Deleted, you will receive a message (3). If you want to go ahead, click Remove GL Account (4). If you don’t want to go ahead, click Close (5):

General Ledger default Accounts

Once you have set up your Chart of Accounts, you will need to set your Company default General Ledger Accounts. If these aren’t set correctly, your postings may end up going to the wrong Accounts.

To set the default accounts, go to System, Company.

Highlight and open the Company (1) and click on the G/L Defaults tab (2). All of the Descriptions on the left hand side of the grid (3) will need to be linked to an Account in your Chart of Accounts. To link in an Account, double click on the Account (4). This will open up the Chart of Accounts (5) so that you can go ahead and choose the correct Account Code.

Opening Balances

When selecting a Commencement Date to start the Accounts in Constructor, you will need to enter your Chart of Accounts, Projects, Clients and Suppliers into Constructor. These will be all used in creating opening Supplier, Client and G/L balances.

Supplier Opening Balances

Assuming all Suppliers have been entered into Constructor, opening balances for these Suppliers can now be set. Setting a Supplier’s opening balance can be done in a couple of ways, depending on how much time you wish to spend and the detail of the data you wish to end up with.

An opening balance is simply creating all outstanding Invoices for each Supplier. The invoice date for these Invoices needs to be posted prior to the selected Commencement Date.

This can be done in two ways;

Suggested Option 1 (maximum information):

  • Create an Accounts Payable Invoice for each outstanding Invoice for each Supplier. These Invoices can be as detailed as you need with one or as many detail lines as required.

Suggested Option 2 (minimum information):

  • Create a single Invoice for each Supplier, adding a detail line related to each Invoice outstanding for that Supplier.

Historical data

Some of the Invoices created as an opening balance may have been partly paid. If so, you will need to pay the Invoice in the same manner as it was originally paid, altering the Payment dates to match and reduce the amount of the Invoice created by that partially paid amount. (Any other Payments previous to the selected Commencement Date can be entered, but do not have to be.)

Entering historical data can be rewarding when it comes to the Profit & Budget Reports of the Projects currently under construction at the time of the selected Commencement Date and for accurate WIP and Profit Reporting during the periods while these jobs are underway. To achieve accurate Budget and Forecasting information on these Projects, all transactions (Invoices and Payments) for these Projects would have to be entered and predated prior to the selected Commencement Date.

There are a couple of ways to fast track this. You could create a single Payment to a sundry Supplier such as Contractor to be nominated, then link to any Cost Centre for each Project to match Payments already made OR for a little bit more work, you could create a single Payment for each Project Cost Centre to the same sundry Supplier. This way your total Project Budget would be accurate, WIP and Project Profit Reporting for each ongoing Project would be also accurate.

The decision to include Purchase Orders in this process is up to the individual business. It is recommended to enter any Purchase Orders that have not been Invoiced into Constructor, but is not essential. Any Purchase Orders that have been fully Invoiced do not need to be entered.

Client Opening Balances

When setting up your Client opening balances and assuming that all Clients have been added into Constructor, the following items will need to be attended to:

  • All Projects that will have any transactions posted to them from the Commencement Date onwards will need to be entered into Constructor.
  • All Projects that have had Claims raised against them prior to the Commencement Date will need to have a Contract Price entered (go to Project Details screen, Contract tab (1) and enter the Contract Amount (2)).

  • All Projects will need to have a current Claim Stage Structure to match their current Claim Method for each Project (see Setting up Claim Stages).
  • Each stage Claim that has been Receipted (for each Project prior to the Commencement Date) will need to have each both the Claim and the Receipt transaction recorded against the Project (see Entering Claims and Entering Receipts)
  • All Variations Receipted prior to the Commencement Date will need to have the Variation created, and the Claim and Receipt transactions recorded (see Estimating Guide for details on creating Variations).
  • All outstanding Claims and claimed Variations will need to be replicated for each Project.

General Ledger Opening Balances

The last step to setting all of your opening balances is to create your General Ledger opening balances. These balances include all of the Accounts (that have balances) in your Chart of Accounts including your Bank Accounts.

Once your Client and Supplier opening balances are entered correctly, you will now be in a position to create your opening balance journal. Firstly, you will need to reconcile and obtain a trial balance from your current accounting system as at the Commencement Date. Reconciling your current system up to this date is important so you are not carrying forward any incorrect balances. Normally the Constructor trial balance will be empty apart from transactions entered as part of opening balances i.e. Clients, Suppliers, bank, income, cost of sales, GST Collected and GST Paid. However, other accounts may also contain balances where:

  • You have posted Payments and Receipts to various Accounts.
  • Rebuilding Project history has resulted in various Account balances.
  • You have been using the Constructor accounting system for some time without entering opening balances.

Whatever the reason, all Accounts with a carried forward balance need to be adjusted so that Constructor reflects your current G/L balances.

If you have never created an opening balance journal before or are not 100% confident in doing so, it is recommended that you consult your accountant to help create your opening balance journal.

To create your opening balance journal, you will need to create a General Journal. From the Main Menu, go to Accounting, General Ledger, Journals.

This will open the General Ledger Journals Summary tab (1). Any Journals already entered can be viewed from here or if there are none, the screen will contain nothing on the grid. Click the New button (2) to open a blank journal.

Enter the header information (3) including:

  • Journal Id (keep in mind your Naming Convention)
  • Effective Date (use your Commencement Date)
  • Notes (this if for the journal description)

On the grid, build the Journal, entering Account, Debits and Credits (4).

Note: It is a good idea to Save periodically when creating a large Journal or it may not be possible to complete the entire Journal in one session. The problem you will find is a Journal will not allow you to save when it is out of balance. To get around this, link the ‘suspense’ Account into the Journal and add the ‘out of balance’ figure in so the Journal balances, allowing you to save and complete at a later time. When you come back to complete the Journal, remove the suspense Account line and continue on.

Continue on entering all Accounts until your opening balances are complete. Once the Journal balances, click the Save button to save and close the Journal.

Bank Opening Balances

After creating your opening balance journal, you will need to create a Bank reconciliation to clear all of the historical transactions that you have just created as part of your opening balances. Create a Bank rec the day before your Commencement Date and check off all transactions for each Bank Account used. That way when you start your first real Bank rec, those old transactions will not be appearing in your current reconciliations.

To create a Bank Reconciliation, go to Accounting, Banking, Bank Accounts:

Highlight the required Bank Account you would like to Reconcile (1), then click on Reconcile (2):

This screen allows you to enter the Statement Number of the bank statement you are reconciling, along with its Date and the Closing balance from that statement (1).

To mark transactions as Reconciled (i.e. they appear on the bank statement), tick the (selection) box (2) on each line OR highlight one line or more then click on Present Selected (3). When all lines have been Reconciled, the Reconciliation should balance. If you are ready to save and lock the reconciliation, click the Reconcile Now (5) button. If you wish to complete the reconciliation at a later time, and you can click the Continue Later button (4). This will save the reconciliation in its current state for you to return to and finish.

Journals

On occasion you will need to create General Ledger Journals. These are Journal transactions that aren’t automatically generated by another system transaction (such as a Claim, Invoice or Payroll journal). Common example of Journals include:

  • Accrual and Prepayments (the recording of revenues and expenses when they are incurred, regardless of when cash is exchanged)
  • Opening Balances (as described above at 5.4.4)
  • Corrections (for moving anything that has previously been misposted.)

If you are unsure of when to use Journals, you should consult your Accountant.

To create a General Journal. From the Main Menu, go to Accounting, General Ledger, Journals.

This will open the General Ledger Journals Summary tab (1). Any Journals already entered can be viewed from here or if there are none, the screen will contain nothing on the grid. Click the New button (2) to open a blank journal.

Enter the header information (3) including:

  • Journal Id (keep in mind your Naming Convention)
  • Effective Date (use your Commencement Date)
  • Notes (this if for the journal description)

On the grid, build the Journal, entering Account, Debits and Credits (4).

Note: It is a good idea to Save periodically when creating a large Journal or it may not be possible to complete the entire Journal in one session. The problem you will find is a Journal will not allow you to save when it is out of balance. To get around this, link the Suspense Account into the Journal and add the ‘out of balance’ figure in so the Journal balances, allowing you to save and complete at a later time. When you come back to complete the Journal, remove the suspense Account line and continue on.

Once the Journal balances and you are happy with the results, click the Save button to save and close the Journal.

Subsidiary Journals

Subsidiary Journals are entered in a very similar way to Journals, but they can also be coded to a Project, Supplier and/or Cost Centre as well as a GL Code. This is handy if you need to move Project costs from one Cost Centre to another or from one Supplier to another.

From the Main menu, go to Accounting, General Ledger, Subsidiary Journals:

This will open the Subsidiary Journals Summary tab (1). Any Journals already entered can be viewed from here or if there are none, the screen will contain nothing on the grid. Click the New button (2) to open a blank journal.

Enter the header information (1) including:

  • Journal Id (keep in mind your Naming Convention)
  • Effective Date (the date the Journal relates to)
  • Notes (this if for the Journal description). Make your Notes as comprehensive as possible, so that anyone looking at this Journal will know exactly why it was raised.

On the grid, build the Journal, entering all relevant information. Choose the Type (2) based on the kind of Transaction. The following example is a Journal to correct posting to an incorrect Cost Centre and GL Code, so C is the appropriate Type. You can choose (3):

  • Project
  • Supplier
  • Cost Centre

You MUST choose GL Accounts, Debits and Credits (4).

Budgets

The General Ledger Budget entry screen is for entering Accounting Budgets rather than Project Budgets. To access it, go to Accounting, General Ledger, Budgets:

There are various options to choose when creating your Budget. Choose the Financial Year the Budget is for (1) and the Budget Type (2)(either Profit and Loss or Balance Sheet). You can also choose if this is going to be Cash based or Accrual (3).

The Time Interval (4) that you choose will determine how many columns are available on the grid for entering values. The example below is Quarterly, so there are 4. If it was Monthly, there would be 12 and 1 for Annually.

The Budget is laid out by GL Code (5). The Codes you see are determined by the Type of Budget you have chosen. The example is a Profit and Loss Budget, so only the Income and Expenditure codes are available to enter Budget against.

Values are entered directly to the fields on the grid. You can take advantage of the Copy to All Periods (6) or Copy and Adjust by (7) options if they are applicable.

If you are using Copy and Adjust by, there are two options:

  • Percent, which will copy the value you have highlighted into each subsequent Budgeting period and increase it by the percentage figure you have chosen or
  • Dollars, which will copy the value you have highlighted into each subsequent Budgeting period and increase it by the dollar amount you have entered.

Save & Close when you are finished entering the Budget.

BAS Worksheet

Your GST reporting and payment cycle will be one of the following:

  • Monthly – if your GST turnover is $20 million or more.
  • Quarterly – if your GST turnover is less than $20 million – and the ATO have not told you that you must report monthly.
  • Annually – if you are voluntarily registered for GST. That is, you are registered for GST; and your GST turnover is under $75,000 ($150,000 for not-for-profit bodies).

The BAS Worksheet is where the system will collate the information needed to prepare your BAS (Business Activity Statement) return for the ATO. To open the Worksheet, please go to Accounting, General Ledger, BAS Worksheet:

BAS Configuration

The BAS Worksheet is divided into a number of tabs. It will open on the Configure tab (1). Start by entering the BAS Period End Date (2).

Ensure the Frequency (3) is set to the correct option for your Company.

  • Monthly
  • Quarterly

Choose the Accounting Basis you use for submitting your returns, either Cash or Accrual (4).

GST Reporting Options (5) are defined by the ATO. Each one has a slightly different set of disclosures. It is your responsibility to ensure you have chosen the correct Reporting Option.

  • Option 1 – Calculate GST and report each Monthly/Quarterly
  • Option 2 – Calculate GST and report Annually
  • Option 3 – Pay GST Instalment Amount.

The bottom half of the screen contains settings you can use if you are Withholding PAYG or paying PAYG in instalments. It is your responsibility to ensure these settings are correct for you Company.

When the configuration is set correctly, click Prepare Worksheet and Statement for Printing (6). This will populate the remainder of the tabs.

Worksheet – GST

The GST Worksheet tab contains the collated information on GST that is recorded in your system.

The information is gathered from the system and placed into the appropriate classification (G1 through to G15). The default link between this screen and your transaction information is held against each Chart of Account record (Accounting, General Ledger, Chart of Accounts).

In the example below, whenever a transaction is posted to the account 4.1001 Sales – Residential Housing, the GST Default for Income will be assigned to whatever is set against the Account for Default Code – Supplies (1). If this is incorrect, you can change it here:

Whenever a transaction is raised for this Account code (1), the Detail line will default to IG, as set above (2). This can be changed at the time the transaction is raised.

The GST codes (IE, IF, IG etc) are hardcoded in the system to link to the G1 – G15 categories that the ATO require you to report by.

The GST Worksheet is broken into two sections:

  • GST you owe from Claims (1)
  • GST you are owed from Invoices (2)

You can click on any of the G code links (3) to see the transactions that are included in any particular section:

During your GST reconciliation, if you find any of this information to be incorrect, please check the GST defaults set against your Chart of Account records, which may have been incorrectly set.

Worksheet PAYG

This Worksheet summarises your PAYG information. As for the GST Worksheet, you can drill down on any of the W codes (1) to see the detailed information.

BAS Pages and Summary

The remaining tabs show the BAS Information in the same format as the forms themselves, so that you can fill in the forms and submit to the ATO.

Please make sure you Reconcile the return. The reports available to assist you in this can be accessed from the Print button (1) and include:

  • BAS (Client Copy) to keep for your own records
  • GST Transaction Summary (for both Accrual and Cash based accounting)
  • GST Transaction Detailed (for both Accrual and Cash based accounting)

Year End Processing

When your Accounts have been finalized and any Year End adjustment Journals entered, you may wish to close off the Financial Year. If you find that your opening balances for your Balance Sheet Accounts look incorrect, it may be due to not having run a Year End.

Please go to Accounting, General Ledger, Year End Processing:

Choose the Year you wish to Close (1) and click Process (2):

You will receive messages regarding the process.

Banking

Creating a Bank Account

The creation of a new Bank Account in Constructor is not done via the Banking section, but from Chart of Accounts. Go to Accounting, General Ledger, Chart of Accounts:

Make sure you have highlighted the area on the Chart of Accounts in which you want the Bank Account to reside (1) and click New (2). This will open up the Chart of Account Entry Screen.

Give your new Bank a description (3). As you have already chosen the area in which you want this Bank Account to reside on the Chart of Accounts, it should have the correct Classification. If it doesn’t, please change it to Current Asset. and make sure it is Postable (4). Make the GST defaults NA (5). (This is because the transactions being posted to the Account will already have their own GST postings, so it isn’t necessary to have them set here).

Tick This represents a Bank Account (6). Fill in all the Account details (7). If this Bank Account already has a balance, you may want to enter in the last reference numbers so that when you start to record Payments and Receipts, the system knows the next number to use (8):

The Account will be created at the bottom of the group in which you created it (1). Use the Up and Down arrows (2) to move it to the desired position and click Save Chart of Accounts (3):

Your new Bank Account is now ready to use.

Bank Accounts

This section is for viewing the balance on your Bank Accounts and performing Bank Reconciliations. Go to Accounting, Banking, Bank Accounts:

 

The Bank Account Summary screen will show you your existing Bank Accounts. If you highlight any of them (1), you will see a summary at the bottom of the screen (2) on the Balances tab, showing the Total of the Selected bank and the Total of all Banks. Move to the Reconciliation History tab and you will see a summary of the Opening and Closing Balances from previous Reconciliations (3):

Reconciling the Bank

To Reconcile the Bank, highlight the Bank and click the Reconcile button (1):

This screen allows you to enter the Statement Number of the Bank Statement you are reconciling, along with its Date and the Closing balance from that Statement (1).

To mark transactions as Reconciled (i.e. they appear on the bank statement), tick the (selection) box (2) on each line OR highlight one line or more, then click on Present Selected (3). When all lines have been Reconciled, the Reconciliation should balance. If you are ready to save and lock the reconciliation, click the Reconcile Now (5) button. If you wish to complete the reconciliation at a later time, and you can click the Continue Later button (4). This will save the reconciliation in its current state for you to return to and finish.

Payments and Receipts

Payments and Receipts are covered in detail in the Accounts Receivable and Accounts Payable sections of this guide. Their appearance on the Banking menu is simply another way of accessing that exact same information.

Transfer

From time to time it may be necessary to transfer funds between Bank Accounts. For example, you may be transferring money from an interest bearing Deposit Account to your Current Account OR from your Current Account to your Credit Card Account.

Go to Accounting, Banking, Transfer:

Choose the Transfer From and Transfer To Accounts (1). Enter the Amount you are Transferring (2), the Date (3) and some comprehensive Notes (4) so that anyone viewing this Transfer will know why it was done. Click Transfer (5):

You will receive the following messages once you confirm the Transfer:

Generate EFT File

Generate EFT File is also available on the Accounts Payable menu, which contains the exact same information as you would see if you open it here on Accounting, Banking, Generate EFT File:

Take note of the EFT File Path (1) so that you can find the file when you have finished creating it.

Enter the Process Date (which can be in advance if you need it to be) (2). Select the required Payments for this file or if it will be all of them, click Select All (3). Once you are happy with the information, click Generate (4). The file can then be uploaded to your banking software from the EFT File Path (1):

Accounts Receivable

Creating a New Client

The following explains how to create a new Client. This can be done from either the shortcut, the Main menu:

Or from within any Client Search box. To begin, click the New button (1). In the top half of the screen, please populate the Main Contact details, including Phone, email and Address. You will need to click the Add (2) button to make the entry fields visible. You can enter the Name (Display As), ID (remember your Naming Convention) and any Legal Salutation.

The bottom half of the screen is divided into several tabs. The first tab is for entering any Additional Contact Information (1) associated with this Client. As above, you will need to click the Add (2) button to activate the data entry fields:

The second tab is for Categories (1). There will be some pre-populated in your database. You can either use the defaults, change them completely or not use them at all if you don’t intend to do any reporting based on Category. To assign a Category, highlight the Category on the right (2) and move with the arrows (3):

The third tab is called Trading Information (1) and is where you record Trading Terms, Ageing parameters and Company details (2), if the Client is a company:

The fourth tab is for any Notes (1) you want to appear on Client documents (Claims, Receipts or Statements) that are specific to this Client and not general for all Clients. Click into any section to activate it. You can also add in any documents to save to the ConText Repository (2) if you wish (from 3.1.13 above):

The final tab is for linking in any Alternate Contact Details (1). For example, if the Client is a company, they may have their Claims and/or Receipts sent to a different Contact rather than the main one. Click the New (2) icon and either link to a contact person already set up against this client (on the Additional Contact Information Tab) or Add in a New Email Address (3):

Progress Claim Methods

Progress Claims are used in Constructor to produce Claims to Debtors for a Project. Progress Claim Methods can vary in total amount of Stage Claims and the percentage or dollar value of each Claim. Multiple Claim Methods can be stored for use in Constructor and each Claim Method can be customised for each Project.

To create or modify a Progress Claim Method go to Projects, Administration, Claim Stages.

This will open the Claim Stages Summary (1) and list any Claim Methods that have already been created. To create a new Claim Method, click the New button (2).

This will open a blank Claim Method. Enter a Description that best suits the Claim (1). Choose the Construction Type from the drop down menu (2).

In the Details area (3) in the first column, type in the Description of the first stage that will be Claimed and then the percentage value of that Claim. This percentage value will be used together with a Project’s Contract value to calculate the dollar value of the Claim Stage.

Repeat the steps until all lines have been entered and the percentage of all stages is exactly 100%. The total percentage figure is displayed in the bottom of the screen for assistance (4).

When creating Stages for a Claim Method, each Stage can have specific text appear on the Invoice detail line. Set this text for each detail line of the Claim Stage by clicking the button between the % and Invoice Text columns (1). This will open a text dialog box where you can insert your Claim Stage Invoice text. This text will appear on the detail line on the Claim (Tax Invoice) report.

Whenever a Project is created, on the Contract tab (1) enter a Contract Amount (2) and a Claim Stage Structure (3) to automatically populate the Stages (4):

Claims

The Claim Summary

The Claims Summary can be accessed by the shortcut or navigating to Accounting, Accounts Receivable, Claims:

To access the Claims Summary from the Project Summary for an individual Project, highlight the required Project (1), click on the Accounting button (2) on the toolbar. This will open the Project Accounting Summary (3). In the Accounts Receivable (Debtors) area (4) click on the search button on the right of the Claims line (5).

The summary contains all of the Claims that have been created and colour codes each one depending on the current Status of the Claim. From the Claim Summary, you can filter by Project (1), Cost Centre (2) or Status (3). You can also alter, receipt or create a new Claim.

Create a Manual Claim

To create a manual Claim, click the New button (1) from within the Claims Summary. This will open a blank Claim screen.

Using the Client look-up button (2), select the Client you would like to create a Claim for. Once the Client is selected, the Due Date on the Claim is automatically populated (3). The Due Date is calculated from the current Invoice date and the Clients trading terms (which are set on the Client record – Clients, Trading Terms tab).

Once the Client is set, you will be able to see any existing, unclaimed Claims and Variations in the top right hand box (1). Claim lines must now be added to the Details section (2).

Starting with the Type Column, there are 3 available line Types in Constructor (3):

  • G: General Ledger line. Allows you to select a Project and an Account from the Chart of Accounts.
  • C: Cost Centre line. Allows the line to be coded to Project and Cost Centre.
  • S: Component line. Allows the line to be coded to Project and Component.

Once the line Type is selected, go ahead and enter the Project, Cost Centre, Component or GL code.

Text can be entered into the Description field (4) at this stage. This text will be seen on the Claim report.

Add the required pricing information into the Claim by typing directly into the Price or Sub Total fields. The detail line is now complete. Additional detail lines can now be added using the same process as above if required. The Claim can now be Previewed, Printed and Emailed to the Client (5).

Claiming a Progress Claim Stage

From your Project Summary screen (1), Contract tab (2), you can produce Claims for each Stage as necessary. (You will need a Contract Amount and a Claim Stage Structure in place first).

The list of available Claims will appear in the Claims section. Highlight the Stage you wish to Claim (3) and click the Claim (4) button. A confirmation box will appear (5). Click Yes to create the Claim.

This will bring up the Claim for you to review. If you need to change the Claim amount, you can at this point (1).

Note: You cannot change the Claim value to more than the preset Claim stage amount. You can Claim less.

Further Stage Claims can be added from the Un-Invoiced Claims summary if required (2) by highlighting the required Claim and clicking the Claim button (3). Authorised Variations will also appear in the Un-Invoiced Claims summary and can be added to any Claim in the same manner.

The Claim is now created and can be Previewed, Printed and Emailed as required. To Claim the next Stage, go back to the Project Summary, click the Contract tab and repeat the process.

Claiming a Deposit prior to setting a Contract price

Quite often when creating a quotation for a Client, a deposit is required before a Contract price has been set. If the Project proceeds, the deposit amount will be included as part of the Contract price.

Firstly, open the Project you wish to Claim a deposit for and click on the Contract tab (1). In the first stage of the Claim Stages, manually enter the dollar value of the deposit in the Amount Exc GST field (2).

You will notice that the final Claim will read as negative to balance the Claim Stages back to zero (3). This will change when the actual Contract amount is entered at a later stage.

Save and close.

You can now go back to the Project Summary, Contract tab (1)and Claim this initial deposit stage the same you would a normal Stage Claim.

Claiming a Variation

Variations can be Claimed by themselves or as part of a Stage Claim. To Claim a Variation by itself, go to the Project Summary screen and click the Variations tab (1). The list of authorised Variations available to be Claimed will be listed. Highlight the Variation you wish to Claim and click the Claim button.

To claim a Variation as part of a Stage Claim, create the Claim for the Stage as normal (1) and once the Claim opens, highlight the authorised Variation that appears in the Un-Invoiced Claims summary (2) and click the Add to Claim button (3) to bring the detail line into the Claim.

Previewing, Printing and Emailing a Claim

Once the Claim has been created, it can be Previewed, Printed and Emailed. To Preview a Claim, open the Claim and click the Print button (1). This will open the Claim document to Preview. Click the Print button (2) for a hard copy. It can also be Emailed from here by clicking Email (Forward) (3)

Another way to Email the Claim to the Client, is to click the Email button (4) and an Outlook Send Message dialog box will open with the Clients email address inserted into the To field. The subject line will also be filled with the Claim details ready for you to click Send.

The Claim will be attached in .PDF format. Any additional text can be added as per a normal email.

Credits

It may be necessary on occasion to issue a Credit to a Client.

The Credit Summary

The Credit Summary can be accessed by navigating to Accounting, Accounts Receivable, Credits:

To access the Credit Summary from the Project Summary for an individual Project, highlight the required Project (1), click on the Accounting button (2) on the toolbar. This will open the Project Accounting Summary (3). In the Accounts Receivable (Debtors) area (4) click on the search button on the right of the Credits line (5).

The summary contains all of the Credits that have been created. From the Credit Summary, you can filter by Project (1), Cost Centre (2) or related Claim (3). You can also alter, receipt or create a new Credit.

Create a Manual Credit

A Credit would normally have a Claim to match it to, though that is not always the case. To create a manual Credit, click the New button (1) from within the Claims Summary. This will open a blank Claim screen.

Using the Client look-up button (2), select the Client you would like to create a Credit for.

Once the Client is set, you will be able to see any existing, unclaimed Claims and Variations in the top right hand box (3). If you are matching the Credit to an Invoice, highlight the Invoice or Variation (3) and click the Add to Credit button (5). This will pull the Invoice down to the Detail Lines. If you want to Credit the entire Invoice, then it is ready to Save. If you want to partially Credit the Invoice, type the amount of the Credit into the Price or Sub Total Fields.

If you are manually adding in the Detail lines (4), keep the following in mind:

Starting with the Type Column, there are 3 available line Types in Constructor (3):

  • G: General Ledger line. Allows you to select a Project and an Account from the Chart of Accounts.
  • C: Cost Centre line. Allows the line to be coded to Project and Cost Centre.
  • S: Component line. Allows the line to be coded to Project and Component.

Once the line Type is selected, go ahead and enter the Project, Cost Centre, Component or GL code.

Text can be entered into the Description field (4) at this stage. This text will be seen on the Credit report.

Add the required pricing information into the Credit by typing directly into the Price or Sub Total fields. The Detail line is now complete. Additional Detail lines can now be added using the same process as above if required. The Credit can now be Previewed, Printed and Emailed to the Client (5).

Note: you should keep the Detail lines on the Credit the same Type as that on the Claim.

Previewing, Printing and Emailing a Credit

Once the Credit has been created, it can be Previewed, Printed and Emailed. To Preview a Credit, DO NOT open the Credit. Instead, you should highlight the Credit on the Credit Summary Screen and click Print, Print Selected Credit(s) (1). This will open the Credit document to Preview. Click the Print button (2) for a hard copy. It can also be Emailed from here by clicking Email (Forward) (3)

Another way to Email the Credit to the Client, is to click the Email button (4) and an Outlook Send Message dialog box will open with the Clients email address inserted into the To field. The subject line will also be filled with the Credit details ready for you to click Send.

The Credit will be attached in .PDF format. Any additional text can be added as per a normal email.

Receipts

The Receipt summary

To open the Receipts Summary, either click the shortcut or from the Main Menu, go to Accounting, Accounts Receivable, Receipts.

The summary contains all of the Receipts that have been created. From the Receipts Summary, you can filter for Receipts, alter details or create a new Receipt.

When the Receipts Summary is accessed from the Receipts button or from the Main Menu, all generated Receipts will be displayed. The Receipts Summary can also be accessed via the Project Summary which will show Receipts for that Project only.

To access the Receipts Summary from the Project Summary for an individual Project, highlight the required Project (1), click on the Accounting button (2) on the toolbar. This will open the Project Accounting Summary (3). In the Accounts Receivable (Debtors) area (4) click on the search button on the right of the Receipts line (5).

Create a Manual Receipt

To create a manual Receipt, click the New button (1) from within the Receipts Summary. This will open a blank Receipt screen.

If the Bank Account displayed (2) is incorrect for this Receipt, you can change it here. Using the Client look-up button (3), select the Client you would like to create a Receipt for. Choose the Payment Method and fill in the related details (4):

Once the Client is set, you will be able to see any existing, Outstanding Claims and Unapplied Credits in the top right hand box (1). Receipt lines can now be added to the Details section (2).

Starting with the Type Column, only G: General Ledger lines can be entered in Receipts.

Go ahead and enter the Project and Account ID (from Chart of Accounts). Add the Receipted amount into the Receipt by typing directly into the Total or Sub Total fields. The detail line is now complete. Additional detail lines can now be added using the same process as above if required.

The Receipt can now be Previewed, Printed and Emailed to the Client (3).

Create a Receipt to a “Sundry” Debtor

Receipts can be received from people that are not listed as Clients in Constructor. When opening a new Receipt, you will notice there is a Received From text box (1). Enter the name and the address of whom the Receipt is from into the text box and that person will appear on the Document.

Receipting a Progress Claim Stage

To Receipt a Claim Stage, go to the Project Summary, highlight the required Project and click on the Contract tab (1). You will see any Claimed Stages in a different colour to unclaimed Stages (2).

To Receipt the ‘Fully Claimed’ Claim Stage, highlight the line and click the Receipt button (3). A message box will appear confirming your Receipt.

Click Yes and the Receipt will open, displaying the Claim detail line with all information entered.

Any outstanding Claims will be seen in the Outstanding Claims summary at the top right of the Receipt (1).

You can choose to add any of those outstanding Claims by highlighting the outstanding Claim and clicking the Receipt button (2).

A different Bank Account can be selected for the transaction by using the Bank Account lookup (3). The Receipt is now ready to be Previewed, Printed or Emailed to the Client (4).

Payment details can be entered on each Receipt (5), which will be then displayed on the document.

Previewing, Printing and Emailing a Receipt

Once the Receipt has been created, it can be Previewed, Printed and Emailed. To Preview a Receipt, open the Receipt and click the Print button (1). This will open the Receipt document to Preview. Click the Print button (2) for a hard copy. It can also be Emailed from here by clicking Email (Forward) (3)

Another way to Email the Receipt to the Client, is to click the Email button (4) and an Outlook Send Message dialog box will open with the Clients email address inserted into the To field. The subject line will also be filled with the Receipt details ready for you to click Send.

The Receipt will be attached in .PDF format. Any additional text can be added as per a normal email.

Accounts Payable

Creating a Supplier/Trade

You may have to create new Suppliers/Trades. The following explains how to create a new Supplier/Trade. This can be done from the shortcut, the Main menu:

Or from within any Supplier/Trade Search box. To begin, click the New button (1). In the top half of the screen, please populate the Supplier’s Company Name Details. On the left, create all the associated Contacts for this Supplier/Trade. Click Add Person (2). The pop-up box for adding in Contact information will appear. You will need to click the Add (3) button to make the entry fields within this box visible. You can enter the Name, Job Title, Practitioner number and contact details.

The bottom half of the screen is divided into several tabs. The first tab (1) is for entering any Additional Contact people associated with this Supplier/Trade. As above, you will need to click the Add (2) button to activate the data entry fields:

The second tab is called Trading Information (1) and is where you record Trading Information for the Supplier/Trade. Also enter the bank details (2), as you will be making payments to them and most likely by EFT:

The third tab is for Preferred Supplier Groups (1). There will be one pre-populated in your database. You can either use the default or set up new ones. An example for grouping Suppliers is by District.

The fourth tab is for the Supplier/Trade Settings (1). These settings are defaults and can be changed at the time of creating your Transactions. Even the Supplier Type (2) can be changed Fill in details of how to do this and give an example here

  • Supplier or Contractor (2). This will be important for the system calculated TPR (Taxable Payments Report), which is for Contractors only.
  • Activity (3) from the pre-populated list (if you are using these for Reporting purposes – if not, then leave it blank),
  • Trading terms (4) are important for the system to determine the Due Date of Invoices.
  • Accounting Defaults (5). The GST code will be automatically populated on Invoices, if you choose a default here, as will Payment Method.
  • Default Accounting Transaction Line Types are for Purchase Orders and Invoices. When creating either an Order or an Invoice, the system will default this Type for each new line.

The fifth tab is for any Notes (1) you want to appear on Supplier documents (Purchase Orders and Payments) that are specific to this Supplier and not general for all Suppliers. Click into any section to activate it. You can also add in any documents to save to the ConText Repository (2) if you wish (from 3.1.13 above):

The sixth tab is to record the Supplier’s Insurance details. Choose from the drop down, then click Add (2). This will populate the screen with the required fields for that Insurance Type:

If the Suppliers Public Liability Insurance expires, a red line will appear against the Supplier whenever if it is used, so that you are aware and can contact them for the new information:

The final tab is for linking in any alternate Contact details (1). For example, the Supplier may prefer their Purchase Orders and Payments be sent to a different Contact rather than the main one. Click the New icon (2) and either link to a contact person already set up against this Supplier (on the Additional Contact Information Tab) or Add in a New Email Address (3):

Invoices

The invoice summary

To access Invoices, either use the shortcut or from the Main Menu, go to Accounting, Accounts Payable, Invoices OR Invoices and Credits:

The Invoice Summary contains all of the Invoices that have been created and colour codes each Invoice depending on the current Status of the Invoice. From the Invoice Summary, you can filter, alter, authorise, pay or create a new Invoice.

To access the Invoice Summary from the Project Summary for an individual Project, highlight the required Project (1), click on the Accounting button (2) on the toolbar. This will open the Project Accounting Summary (3). In the Accounts Payable (Creditors) area (4) click on the search button on the right of the Payments line (5).

From the Invoice Summary, the user can filter by Project (1), Cost Centre (2), Authorisation Status (3), Payment Status (4), Order (5) or Payment (6). You can also edit, pay or create an Invoice.

Create a Manual Invoice

To create a manual Invoice, click the New button (1) from within the Invoice Summary. This will open a blank Invoice screen.

Using the Supplier / Trade look-up button (2), select the Supplier you would like to create an Invoice for. Once the Supplier is selected, the Due Date on the Invoice is automatically populated (3). The Due Date is calculated from the current Invoice date and the Suppliers trading terms (which are set on the Supplier record – Suppliers / Trades, Trading Information tab).

Once the Supplier is set, you will be able to see any existing, un-invoiced Orders in the top right hand box (1). Ideally, all Project related Invoices should have an Order to match to. Highlight the Order that this Invoice is being matched to and click on Add to Invoice (2).

This will move the Order down to the Details section (1). If the Invoice is for only part of the Order OR the Invoice has come in at a different price from the Order, you can change Quantity, Price or Subtotal as required (2). The Project and Item will populate from the Order and cannot be changed. If you need to change them, do so on the Order first.

If the Invoice you are creating is not Project related, such as the electric bill for your Company office, then it is unlikely to have an Order to match to. In this scenario, you will need to create the Detail lines manually.

Starting with the Type Column, there are 3 available line Types in Constructor (1):

  • G: General Ledger line. Allows you to select a Project and an Account from the Chart of Accounts.
  • C: Cost Centre line. Allows the line to be coded to Project and Cost Centre.
  • S: Component line. Allows the line to be coded to Project and Component.

Once the line Type is selected, go ahead and enter the Project, Cost Centre, Component or GL code. In the example of the electricity bill, the Type would be G and only the GL code is entered on the Detail line.

Add the required pricing information into the Invoice by typing directly into the Price or Sub Total fields (2). The Detail line is now complete. Additional Detail lines can be added if required. Save & Close and the Invoice is now available to make a Payment against.

Recipient Created Tax Invoice

Constructor allows for the creation of tax Invoices on your Contractors behalf (Recipient Created Tax Invoice or RCTI)(1) for Companies that hold an authorisation from the ATO under ruling GSTR 2000/10 and where there is a written agreement with the Contractor.

Creating an RCTI enables the Print button (2) (which is normally not activated for Invoice entry) and allows the user to preview the Invoice report and Print and Email like any Purchase Order or Remittance. To create an RCTI, simply check the Recipient Created Tax Invoice checkbox above the Supplier/Trade and enter the Detail lines as described above.

Automatic invoicing

Automatic Invoices relate to Invoicing Purchase Orders. This means all of the Detail lines in a specific Purchase Order are automatically added to an Invoice, saving the user time. Orders can be Invoiced from the Purchase Order Summary or from inside an Invoice.

To Invoice a Purchase Order from the Purchase Order Summary (1), highlight the required Purchase Order and click the Invoice button (2) on the toolbar menu. The Purchase Order status will change to Fully Invoiced and an Invoice will now appear in the Invoices Summary for that specific Order. Multiple Orders can be Invoiced at once, by highlighting more than one on the Purchase Order Summary.

To Invoice from inside a new Invoice, add a Supplier to the Invoice (1) and all Uninvoiced Orders relating to that Supplier will appear in the UnInvoiced Orders grid at the top of the Invoice (2).

Highlight the required Order/s and click the Add to Invoice button (3) under the grid. This will bring all available Detail lines from the Purchase Order into the Invoice. Multiple Orders can be added to the Invoice.

If the Invoice is for only part of the Order OR the Invoice has come in at a different price from the Order, you can change Quantity, Price or Subtotal as required (2). The Project and Item will populate from the Order and cannot be changed. If you need to change them, do so on the Order first.

Authorising Invoices

Once your Invoice matches the Supplier’s tax Invoice, it is ready to be Authorised. To Authorise an Invoice, locate the Invoice in the Invoice Summary and highlight. Click the Authorise button (1) on the menu toolbar. The Invoice will now enter an Authorised status (2) and the background of the Invoice line will change colour (3).

This is now a Fully Authorised Invoice, meaning the entire value of the Invoice is now ready to be paid. Once an Invoice is Authorised, it can sit in the Invoices Summary until you are ready to pay. Multiple Invoices can be Authorised at once using this method.

Partly Authorising Invoices

Constructor also gives the user the ability to Partly Authorise an Invoice. This eliminates the need to remove Invoice Detail lines or alter Detail line Quantities or Values. Invoices can only be partly Authorised one at a time from inside the Invoice. The Invoice can be partially Authorised as a whole or specific Detail lines can be individually partly Authorised.

To partly Authorise, open the required Invoice. On each Detail line there is an Authorised column (1). Each individual Detail line can be partially Authorised by manually typing a figure into this cell. This will attribute the Payment to this Detail line only.

In the bottom right hand corner of the Invoice there is an Amount authorized for payment field. This allows you to enter the total dollar amount (incl.GST) for this Invoice that you wish to pay. This will attribute the Authorised amount proportionally across all Detail lines.

Save & Close and this Invoice will now appear in a Part Authorisation status (1) with the Authorised amount displayed in the Authorised column (2). This is now ready to be paid.

Copying Invoices

Invoices in Constructor can be copied from the Invoices Summary. Any Invoices that have been Invoiced from a Purchase Order cannot be copied. All other manually created Invoices can be. To copy an Invoice, highlight the Invoice and click the Copy button (1) on the toolbar menu. The new copied Invoice will open displaying all of the identical Invoice information of the original, linked to the same Supplier. The Invoice number will display as _Copy, so please change it to the actual Invoice number (2). All information in the new Invoice can be altered. In this example, the electricity Invoice has been copied and the price changed (3).

Scheduling Invoices

Constructor allows for manually created Invoices to be scheduled on a regular basis. To schedule an Invoice, go to Accounting, Administration, Recurring Transactions:

Click on New Recurring Transaction (1) and choose New Recurring Invoice. Create the Invoice as you normally would by choosing a Supplier, Payment Method and adding a Detail line. Click Set Schedule (2)

Enter a Name for the Schedule (1) which is a brief schedule description. Choose the Frequency (2) and the day of the month for this transaction (3). Choose the Start date and End date or the number of occurrences (4). You can include an internal note which will not appear on the transaction (5).

You can specify Users or Roles (group of users have the same role) to receive a notification as soon as this transaction happens on the due date (6).

Credits

The Credit Summary

Constructor allows you to raise a Credit against Invoices. The Credit is directly linked to an Invoice in an Entered or Partially Paid Status and the Invoice must not be Fully Authorised.

To raise a Credit against an Invoice, go to Accounting, Accounts Payable, Credits OR Invoices and Credits.

The Credit Summary contains all of the Credits that have been created and colour codes each Credit depending on the current Status of the Credit. From the Credit Summary, you can filter, alter, authorise, pay or create a new Credit.

Like Invoices and Payments, the Credit Summary can be accessed in two different ways with two slightly different results. From the Main Menu you will access all of the Credits created in Constructor.

From the Project Summary, the Credit Summary will open filtered on all Credits related to that selected Project.

Matching a Credit to an Invoice

This will take you to the Accounts Payable Credits Summary (1). Click the New button (2) to create a new Credit. Add the required Supplier to the Credit using the look-up button (3). Once the Supplier has been entered, a list of all Invoices available to Credit will appear in the Unauthorised Invoices grid (4).

Highlight the required Invoice and click the Add to Credit button (5) below the grid. This will add all of the available Detail lines from the Invoice to the Credit (6).

If you are creating a partial Credit, after the Detail lines have been added, manually type in the dollar value you would like to Credit from each Detail line (1). The Credit amount is entered as a positive value. If no Credit amount applies to a specific line, remove that line from the Credit using the Delete button (2).

Once the Credit amount has been added and all non-crediting Detail lines have been removed, Save & Close the Credit.

Creating a Credit with No Matching Invoice

Credits can be created in Constructor when there are no relevant Invoices to match to. To create a Credit, go to the Credits Summary (1) and click the New button (2). Once you have added a Supplier to the Credit (3), add a Detail line into the Credit. When the Detail line is added, you will have the choice to create an S, C or G line depending on the situation the Credit relates to (4). This example will be a Credit with an C Detail line Type.

Click on the Type drop menu button (4) to select an C line Type. Because a C line type is Project related, select the associated Project and then select the required Cost Centre.

You can now manually change the Qty, Price or Subtotal (5) to create the correct Credit amount. The amount is entered as a positive value. Save & Close and the Credit is ready to be Authorised.

You can apply this Credit to an Invoice from the same Supplier at the time of Payment, though you must make sure the Detail line Types match on the Credit and the Invoice.

7.3.3 Authorising Credits

To Authorise a Credit, locate the Credit in the Credit Summary and highlight. Click the Authorise button (1) on the menu toolbar. The Credit will now enter an Authorised status (2) and the background of the Credit line will change colour (3).

The Credit is now ready to be used to reduce the amount owed to the Supplier. Once a Credit is Authorised, it can sit in the Credit Summary until you are ready to pay. Multiple Credits can be Authorised at once using this method.

Matching an Invoice to a Credit

From the Accounts Payable Invoices and Credits Summary (1), highlight the Invoices and Credits for the Supplier (2). Click on Authorise and Pay Selected (3). This will bring up the Payment summary, which will net the Invoices and Credits off against each other, reducing the overall amount due to the Supplier (4).

Copying Credits

Credits in Constructor can be copied from the Credit Summary (1). To copy a Credit, highlight the Credit and click the Copy button (2) on the toolbar menu. The new copied Credit will open displaying all of the identical Credit information of the original, linked to the same Supplier. The Credit number will display as xxx_Copy, (3) so please change it to the actual Credit number (2). All information in the new Credit can be altered.

Payments

The Payment Summary

The Payment Summary can be accessed from the shortcut or from the Main Menu. Go to Accounting, Accounts Payable, Payments:

The Payment Summary contains all of the Payments that have been created. For example, from the Payment Summary the user can create Payments, change Bank Accounts and Payment ID’s and Print Supplier remittances.

Like Invoices and Credits, the Payment Summary can be accessed in two different ways with two slightly different results. From the Payments shortcut button, you will access all of the Payments made in Constructor. From the
Project Summary, the Payment Summary will open filtered on all Payments related to that selected Project.

Creating a Manual Payment

To create a manual Payment in Constructor, open the Payment Summary and click the New button (1). A Payment screen will open. Payment Dates, ID and Bank Accounts can all be altered at this stage. Using the lookup button, select a Supplier (2) and check the Payment Method is correct. To pay specific Invoices, highlight the Invoice/s in the Unpaid Invoices and Unapplied Credits section (3) then click Add to Payment (4).

The Detail line will be added as a T line Type (1), which indicates the Payment has been created from an Invoice. More than one Invoice can be remitted into the Payment. Once all of the required Detail lines have been added, you can Print or Email (2) the Remittance Advice or Save & Close as required.

It is possible to create a Payment that is not linked to an Invoice. Fill in the Supplier details (1), then add a new Detail line/s into the Payment. Because this is a manual Payment, the transaction Detail line can only be set to a G (General Ledger) line Type (1). Choose the G/L code and enter the price information (3).

Once the Payment is complete and all information is correct, Print or Email the remittance or Save & Close the Payment.

Create a Payment to a Sundry Creditor

Payments can be made to people that are not listed as Suppliers in Constructor. When opening a new Payment, in the top right hand corner, there is a Payee text box (1). Enter the name and/or the address of whom the Payment is for into the text box and that name will appear on the Remittance Document. Enter a Detail line. This example is for a sundry payment for stationery for the office, so the Type is G (2). Choose the Account code and fill in the dollar value (3). A remittance can now be Printed or Emailed as required (4):

Creating Payments from the Invoice and Credits Summary

Open the Invoices and Credit Summary (1) and filter to find the required Invoices. If the Invoices to be paid have not been Authorised, select them and click on Authorise and Pay Selected (2) on the tool bar. On the other hand, if they are Authorised and ready to pay, select them and click on Pay All Authorised (3).

Note: Once you have highlighted all the items you want to Pay, it may be worth Printing out the list (4) so that you can compare it to the Payment screen to make sure everything balances before you make the Payment.

This will open the Pay Invoices screen (1). If you need to change the Payment method on any of the Invoices, highlight the line and click Change Payment Method (2).

The bottom half of the screen will allow you to check or change:

  • Bank Account (3) (this is the Account the Payment will be taken from)
  • Payment Date (4) (this can be set to the future if you are going away)
  • Payment Options (5), which include Cheque, EFT and Other

After all details are double checked and all required changes are made, click on Generate to finalise the Payment.

Remittances and EFT File Generation

Once a Payment has been Generated, a Remittance can be Viewed, Printed, Emailed and/or saved as a PDF file.

To View, Print or save a remittance, go to the Payment Summary, select the required remittances by highlighting one or more and then click on Print, Print Selected Payment(s), Payment only (1).

To Email the Remittance/s, click on the Email button (2).

Once the Remittances are sent or printed, the EFT file should be generated from here. Click Generate EFT File (1) to bring up the Generate EFT file (ABA) screen (2). Select the required Payments for this file or if it will be all of them, click Select All (3). Once you have entered the Process Date and are happy with the information, click Generate (4). The file can then be uploaded to your banking software from the EFT File Path (5):

Taxable Payments Report

Businesses providing building and construction services need to report on their Taxable Payment Annual Report (TPAR) the total Payments they make to Contractors for their services.

To access the TPAR, go to Accounting, Accounts Payable, Taxable Payment Report:

This will open the Generate TPAR File screen (1). Choose the time frame for this return (2), tick Print the Taxable Payments Report (if you want a hard copy), then Click Generate (3):

If there are no problems with the report generation, you will see this message:

You can then browse to the file path and open the file to check it, then upload it to the ATO.

If there are any problems with the generation, you will see the below message. You will need to fix any errors in your data and regenerate the file.

Reports

In Constructor, all Reports are held in the same Section. From the Main Menu, go to Reports, All Reports:

This will open the Reports Summary. The Reports Summary is split into the following Sections:

  • Accounts Payable
  • Accounts Receivable
  • General Ledger
  • Payroll
  • Projects
  • Sales
  • Scheduling

This guide will focus on the first three:

To open any of the Reports, double click on the required Report.

There is currently no facility to change the format of any of the Reports.

Should you wish to export any of these Reports, for example to Excel, this is possible but the results will require manipulation, as headers and footers are also exported, making the Reports difficult to read until they are removed. From any Print Preview, click Save As (1). This will bring up the Save dialogue. Enter a file name and choose the File Type (2). You can then open the file from the saved location.

General Ledger Reports

  • The General Ledger Reports comprise:
  • Chart of Accounts
  • Trial Balance
  • Profit and Loss
  • Balance Sheet
  • Cash Based GST Transactions
  • GL Account Movement
  • GST Transactions

Chart of Accounts

The Chart of Accounts Report is a simple listing of your Account codes, descriptions and their associated GST default codes (for the BAS return) (1). When you open this Report, it will run immediately without a parameters screen appearing first.

Trial Balance

Choose the date you wish to run the Trial Balance up until (1). The Report will produce a simple Trial Balance. If you want to see Accounts without a balance, tick Show accounts with 0$ balances (2):

Profit and Loss

The Profit and Loss Report gives you several parameters to choose from. These include Period comparisons and Budget comparisons. Make sure you choose the correct Reporting Period (1) and click Print (2) to both Preview and Print the Report.

Balance Sheet

To run the Balance Sheet Report, choose the Date (1) and click Print (2):

Cash based GST Transactions

You may wish to use the GST Reports in this section to help reconcile your GST return (in the BAS Report). Choose the date range (1), tick Show Details (2) if you want a transaction list (leaving this unticked will produce a summary Report) and click Print to Preview (3):

GL Account Movement

This Report is useful for querying the transactions and balances on your GL Accounts. Choose the Period on which you would like to Report (1) and choose the Account/s you want to Report on (2). You also have the option to Show Details, zero value Accounts and any Notes (3):

GST Transactions

You may wish to use the GST Reports in this section to help reconcile your GST return (in the BAS Report). Choose the date range (1), tick Show Details (2) if you want a transaction list (leaving this unticked will produce a summary Report) and click Print to Preview (3):

Accounts Receivable Reports

The Accounts Receivable Reports comprise:

  • Aged Debtors Trial Balance
  • Accounts Receivable Statements

Ideally, you would be reconciling your Accounts Receivable (Sales) Ledger every month with the Aged Debtors Trial Balance Report and sending out Accounts Receivable Statements every month to your Clients.

Aged Debtors Trial Balance

Choose the Date (1), whether or not to include transaction details (2) and Print to Preview (3). Reconcile this Report back to your Debtors Control Account every month for effective financial control.

Accounts Receivable Statement

Choose the Clients you want to print Statements for (1). This can be for selected Clients or all of them. Choose the Date range (2) and tick Only show open transactions as of statement date (3). Each Statement will show the Client Information at the top (4), details of the outstanding transactions in the middle (5) and an ageing summary at the bottom (6):

Accounts Payable Reports

The Accounts Payable Reports comprise:

  • Aged Creditor Trial Balance
  • Insurance Details
  • Supplier / Trade Transaction Summary
  • Taxable Payments Annual Report (TPAR)
  • Variance Code Transactions

Aged Creditor Trial Balance

Choose the Date (1), whether or not to include transaction details (2) and Print to Preview (3). Reconcile this Report back to your Creditors Control Account every month for effective financial control (3)

Please Note, this Report has a lot of work to do and may take a while to run.

Insurance Details

This Report can be run to find out if any of your Suppliers /Trades Trade Insurance has expired. It can be run for selected Suppliers / Trades or all of them (1). Tick if you only want to Report on Expired Insurance (2):

Supplier / Trade Transaction Summary

This Report summarises a Supplier / Trade Account. You can choose selected Supplier/s or all of them (1). Choose your Reporting period (2) and if you want to Hide Zero Balance Suppliers / Trades, then tick (3):

Taxable Payments Annual Report (TPAR)

If you require a Printed Report of your TPAR, then you can Print it here. Choose the Payment Period (1) and whether you want all Contractors or selected ones (2).

For a more detailed explanation, please see 7.5 above

Variance Code Transactions

There are a number of parameters you can choose when running this Report. Decide which Variance Reason Codes you want to include (1), the Reporting Period (2) and any of the other available transaction information you wish to include (3):