ConnectNow Church Accounting: Ledger and Payables Training Guide Pub T219, March 2014 Web: www.parishsoft.com www.churchmanagementsolutions.com Email: info@parishsoft.com info@churchmanagementsolutions.com support@parishsoft.com support@churchmanagementsolutions.com Phone: (734) 205-1000 main (866) 930-4774 support Fax: (734) 205-1011 © 2013 ParishSOFT LLC, all rights reserved. ParishSOFT grants licensed users the right to unlimited duplication of this publication for internal use. PUBT418-2014 CONTENTS Introduction .................................................................................................................................. 5 Closed Accounting System ......................................................................................................... 5 Reporting ..................................................................................................................................... 5 Training Guide ............................................................................................................................. 5 Functionality and Privileges ........................................................................................................ 5 Navigation ........................................................................................................... 6 Users and Permissions ...................................................................................... 7 Creating A User ........................................................................................................................... 7 Permissions ................................................................................................................................. 8 System Setup ...................................................................................................... 9 Set User Options ......................................................................................................................... 9 Set Up Vendor Terms................................................................................................................ 10 Set Up Vendor Types ................................................................................................................ 10 Account Entry - Diocesan ................................................................................ 11 Sub-Account Entry ................................................................................................................ 11 Account Entry - Non-Diocesan ........................................................................ 12 Entering Vendors .............................................................................................. 13 Add New Vendor ....................................................................................................................... 13 Vendor Account Distribution ...................................................................................................... 14 Vendor 1099/Checks ................................................................................................................. 15 Check Printing Options ......................................................................................................... 15 1099 Information ................................................................................................................... 15 Projects .............................................................................................................. 16 Set Up Projects ......................................................................................................................... 16 Bills .................................................................................................................... 17 Entering Bills ............................................................................................................................. 17 Find a Bill ................................................................................................................................... 21 Checks ............................................................................................................... 22 Check Layout ............................................................................................................................ 22 Printing Checks ......................................................................................................................... 23 Voiding Checks ......................................................................................................................... 25 Deposits ............................................................................................................. 26 Entering Deposits ...................................................................................................................... 26 Importing a Payroll ........................................................................................... 28 Journal Entries .................................................................................................. 28 Entering Journal Entries ............................................................................................................ 28 ConnectNow Ledger and Payables Training Guide - «Diocese» 3 Credit Cards ...................................................................................................... 29 Set up Credit Card Account ...................................................................................................... 30 Reconciling Credit Cards .......................................................................................................... 30 Bank Reconciliation.......................................................................................... 31 Memorized Transactions .................................................................................. 33 Editing Memorized Transactions ............................................................................................... 33 Budget Entry ..................................................................................................... 34 Edit Budget Amounts................................................................................................................. 35 Beginning Balances.......................................................................................... 36 Entering Beginning Balances .................................................................................................... 36 Reporting End of Month Reporting ................................................................ 37 Financial Statements ........................................................................................ 38 Statement of Financial Position ................................................................................................. 38 Statement of Activities ............................................................................................................... 39 Check Register .......................................................................................................................... 40 Account Balance ....................................................................................................................... 41 Budget Reporting.............................................................................................. 42 End of Month Process ...................................................................................... 43 End of Year Process ......................................................................................... 44 Close a Fiscal Year ................................................................................................................... 44 Reference Information ...................................................................................... 45 Cash or Accrual? ....................................................................................................................... 45 Reporting Dedicated and Restricted Funds .............................................................................. 45 ConnectNow Ledger and Payables Training Guide - «Diocese» 4 Introduction ConnectNow Ledger & Payables brings you a powerful, fully featured fund accounting system with the freedom of anytime, anywhere access, and the peace and security of tracking all users of the system. The ConnectNow family of Church Accounting modules includes: Ledger & Payables and Payroll, with additional modules Accounts Receivable, Fixed Assets, and Purchase Orders available at a later date. ConnectNow Church Accounting is written for both the ParishSOFT and Church Management Solutions which are affiliated companies. Closed Accounting System Ledger and Payables complies with Financial Accounting Standards Board (FASB) requirements for closed accounting systems to help you safeguard your financials. No edits will be allowed to saved entries in a closed period, and changes to entries are tracked in a log file. While you cannot make changes to a closed accounting period, you can continue to work in future fiscal accounting months. This grace period allows you to wait for all bank statements and transactions for the current fiscal month that don’t appear until the next fiscal month, before closing the month. Reporting Ledger and Payables offers full reporting on historical data for all prior years, so you can quickly access the records you need at any time. You can even work in next year’s file without having to close the current year. Its web-browser interface makes it easy for anyone in your parish to use. Any time you need to see what makes up any number from the financial report, just double-click and view the transactions—no lengthy searching is required. Training Guide The examples shown in this document use demonstration data and do not represent the actual records of any church, parish or diocese. Functionality and Privileges Because this guide covers functionality for both standalone church accounting systems and those hosted by parent organizations, some of the options illustrated may not be available to you. Login-based system privilege settings may also render certain functions unavailable to your user account. Ledger and Payables provides four different system privilege levels: diocesan administrator, diocesan user, church administrator, and church user. The church administrator can do a journal entry to a closed month and can extend that capability to other users as necessary. Please contact your organization’s Ledger and Payables administrator to request additional system privileges. ConnectNow Ledger and Payables Training Guide - «Diocese» 5 Navigation The upper right of the screen shows your login information, diocese, parish name, and current fiscal month and year. Navigation icons for Accounts, Bills, Checks, Deposits, Journal Entries, Vendors and Credit Cards are available on the left side of the screen and provide fast, easy access to the data entry screens. On the right side of the screen are icons for Memorized transactions, Process functions (i.e., Beginning Balance, Bank Reconciliation, Budget, and End of Month), Setup (i.e., Check Layout, Funds, Projects, User Options, Vendor Terms, and Vendor Types), and Reports. Click with your mouse to open any data entry or list screen. The web site and telephone number of ParishSOFT Support is found directly under the data entry and list icons, as well as links to emailing a support question, viewing and printing the user’s guide and any release notes related to recent updates. The space below provides real time data for items such as bills to pay, memorized transactions, etc., with charts that provide a true dashboard of the financial information that is most vital to your office. ConnectNow Ledger and Payables Training Guide - «Diocese» 6 Users and Permissions Creating A User 1. Click the Church Manager tab 2. Click the Add a New User button. 3. Enter a. User Name = (Enter your name or title here) plus 1234 b. Password = password1 c. Confirm Password = password1 NOTE: A username unique to the ConnectNow system-wide. If the username has previously been entered or deleted, you be prompted to enter a unique username. 4. The Force Password Change box will be checked by default for new users. a. This option requires the user to set a new password during his/her initial login. 5. Enter a. First Name = (Enter your first name here) b. Last Name. = (Enter your last name here) 6. Select the Role – Parish User (e.g., Church User or Church Administrator) a. Church Administrators can create user accounts, reset passwords, and deactivate a user account. Although you can have multiple Church Administrators, we recommend that you limit the Church Administrator account to a single user. 7. Enter your email address. 8. The Active box will be checked by default to activate the user’s account. 9. Click Submit. NOTE: If you work for multiple parishes in your Diocese, contact your Diocesan Representative to create a Consolidation User account. Consolidation Users have a single sign-on to access multiple parishes’ data. ConnectNow Ledger and Payables Training Guide - «Diocese» 7 Permissions We have set up a User and now we can decide what you do and do not want them to access. 1. Click the Church Manager 2. Click on the Permissions Page 3. Use the Quick Find option to select the user a. Click Select Person. 4. Remove the checkmarks in the columns Read, Allow/Write and Delete next to the items for which you do not want them to have access. 5. Church administrators can now set user permissions for individual entities in the Chart of Accounts. This feature enables church administrators to specifically control which entities each user has access to (for example, John has access to the School entity but not the Church and Cemetery entities). To restrict the user’s access to an entity, check (to clear) allowed check box for the Entity and click Submit. Entity Level Permissions allows users to see bank accounts and accounts payable accounts from other entities by default. Many times users need to use a different entities bank account to pay bills etc. If you want to turn off any ability to see across entities, go to Church Manager Options and put a check in Entity Level Restrictions ConnectNow Ledger and Payables Training Guide - «Diocese» 8 System Setup Set User Options All of your Account lookup tables are sorted according to the preference that you set under this window. Choose the setting that you prefer to make fast work of finding accounts as you enter transactions in the system. 1. Click the Setup button, and choose User Options. 2. Choose Code, Description, or Shortcut under the Account Format lookup and click Submit. Example of Account Format Options Description: Petty Cash: A-1-10-01 100 Shortcut: 100: Petty Cash A-1-10-01 Code: A-1-10-01: Petty Cash 100 3. If your church has many transactions in your monthly Bank Reconciliation, you may choose the Add Recalculate Button to Bank Reconciliation. This will turn off the automatic calculation in the Bank Reconciliation which may speed up the process for Bank Reconciliations over 500 line items. 4. If selected the account format Code, you can Remove the Account Code Dashes for easier entry. 5. You can choose to turn on a Memorized Transaction Reminder which will remind you each time you log in if you have Memorized Transactions that need to be processed. 6. You can choose your Default Bank Account that will come up the first time you go to enter Bills, Deposits or Journal Entries. (Note: Accrual Accounting systems will also set a default A/P Account for Bills) ConnectNow Ledger and Payables Training Guide - «Diocese» 9 Set Up Vendor Terms Vendor Terms (e.g., cash, net 30 days, 2% if paid in 10 days, etc.) that you create in the Setup window will automatically populate any bills that you create for this vendor. 1. Click the Setup button and click Vendor Terms. Once you add a Vendor Terms to each Vendor, ConnectNow will automatically insert the Due Date and Discount Date when you create a bill for that vendor. Using Vendor Terms is a time saver in reducing data entry even if you do not utilize discounts. Simply setup terms that are ‘Cash’ , Net 10, Net 20, etc. Note: “Vendor Terms Code” is only defined when using Positive Pay. Activity 1. Enter the following Vendor Terms Description – Vendor Terms Code – Disc. Days – Disc % Net Days – Net 30 Leave Blank o 0 30 Set Up Vendor Types Vendor Types are categories that you can associate with each vendor record that you set up in your system. Vendors with assigned types can be organized for reporting and searches. 1. Click the Setup button and click Vendor Types 2. Enter the Description "Utilities” 3. Click Submit ConnectNow Ledger and Payables Training Guide - «Diocese» 10 Account Entry - Diocesan Your diocese has provided you with a full Chart of Accounts that you will use. These accounts have been inserted into your ConnectNow Fund Accounting system and are ready to use. 1. Click on the Accounts Icon 2. When in the New Account Screen, click the Chart of Accounts (Add SubAccount) link. The items without a checkbox have already been inserted from the Diocesan Full Chart of Accounts into the Parish’s Chart of Accounts. The items with a checkbox have not yet been inserted in the Parish’s Chart of Accounts. 3. Find the Account Type Expense, the Entity Parish and the Description, Rental Expense E-10-10-45-00-7800-7804-000 4. Check the box at 7804.000.10.45.00 Rental Expense E-10-10-45-00-7800-7804-000 to insert into your Parishes’ Chart of Accounts. 5. Click Submit. Sub-Account Entry You may also add sub-accounts to your system, should you need more specific accounts for your Parish. 1. Click the Chart of Accounts (Add Sub-Accounts) link. 2. Choose the Account Type of Asset, Entity Parish and Category Cash in Bank, and click Search. 3. Click the Add Sub-Account link under 1101.000.10.45.00 Operating Accounts A-10-10-4500-1100-1101-000. 4. The system will copy all of the elements of the account, allowing you to change the Description and Shortcut Number. a. Shortcut Numbers should follow Diocese format. Use the same number as the Description before the period ( . ) and the Alpha Abbreviation of the original shortcut number. b. Change the two digits after the period ( . ) to match the Sub-Account number. 5. Click Submit. NOTE: When inserting or adding your Bank Account, you were prompted to insert the Interest Income and Service Charge Expense Account for the bank. This information will remain with each bank account and when you complete a Bank Reconciliation, the system will create an automatic Journal Entry recording any interest income earned or bank service charge incurred. ConnectNow Ledger and Payables Training Guide - «Diocese» 11 Account Entry - Non-Diocesan We will enter some accounts here to familiarize you with the process. The full section on creating accounts can be found later in this manual. Let’s start by creating a Bank Account 6. Click on the Accounts Icon 7. When the New Account Screen opens enter the following: Description: Wells Fargo Checking Account Type: Asset Shortcut: 114 Entity: 1 Parish Operations Class: 11 Checking Sequence: 05 Bank Account: Yes Service Charge Acct: 5206 Bank Charges Interest Acct:4140 Interest Income 0.00 8. Click Submit when finished NOTE: When you entered your Bank Account, you were prompted to insert the Interest Income and Service Charge Expense Account for the bank. This information will remain with each bank account and when you complete a Bank Reconciliation, the system will create an automatic Journal Entry recording any interest income earned or bank service charge incurred. ConnectNow Ledger and Payables Training Guide - «Diocese» 12 Entering Vendors Add New Vendor To add a new vendor, click the Vendors icon Enter the information on the Vendor screen: 1. Vendor Name (required) – Harters Trash and Recycling 2. Check Name (required) Harters Trash and Recycling 3. Vendor Code – Leave Blank 4. Address – 2850 Larson Street 5. City - LaCrosse 6. State – WI 7. ZIP Code – 54503 8. Account Number - 123456789 9. Terms - Net 30 10. Type – Utilities Click the Submit button to save the record. The Vendor’s name will now be available from the Vendor lookup tables in the software. NOTE: The Account Distribution, 1099/Checks, and Credit/Notes options at the top of your Vendor screen will be dimmed/unavailable until you have clicked Submit to save the new vendor record. ConnectNow Ledger and Payables Training Guide - «Diocese» 13 Vendor Account Distribution To save yourself data entry time, you can use ConnectNow’s Vendor Account Distribution feature. This will allow you to enter the Expense, Liability, and/or Dedicated Accounts you normally use when paying this vendor’s bills. 1. Click the Vendors icon on your toolbar and find and view the vendor record. 2. Click Account Distribution. 3. Enter the Accounts 7602.000.10.45.00 Gas and Electricity 7804.000.10.45.00 Rental Expense E-10-10-45-00-7800-7804-000 4. Select Distribution Method of Percent and use 75.00 and 25.00 for each accounts You can use either Percentage or Amount Amount will automatically fill in a specific dollar amount when a bill is created for the Vendor. You can change the amount if needed on the bill Percentage – Must Equal 100 and will distribute the bill amount accordingly 7602.000.10.45.00 Gas and Electricity 7804.000.10.45.00 Rental Expense E-10-10-45-00-7800-7804-000 5. Click the Submit button to save the account distribution information to the vendor record. Each time you enter this vendor on a new bill, you will be asked if you wish to apply the distribution options to the bill. Click OK to apply the distribution, or click Cancel to add a bill without the distribution amounts. ConnectNow Ledger and Payables Training Guide - «Diocese» 14 Once the accounts are listed on the bill entry window, you can choose to leave the distribution as is, or edit and/or delete the accounts automatically inserted as needed! Vendor 1099/Checks Use the 1099/Checks link to mark vendors for year-end 1099s, set printing options for a specific vendor, or to create a 1099 form. Check Printing Options Vendor checks can be printed separately for each bill or combined into one check if there are more than 10 bill items being paid at one time. Check the box to match your preference. 1099 Information When you check the Print 1099 box, the system will recognize and track all payments made to this vendor in order to run 1099s at year-end. NOTE: Non-Incorporated Vendors to whom you have paid over $600 in the calendar year for goods or services must receive a 1099 from your organization. We recommend you have your vendors provide you with a W-9 form prior to contracting work. NOTE: You can enter a Check Memo that will default in the memo line of each check you write. It CAN be edited on individual checks as needed. NOTE: You can enter an Adjustment amount for the year, if needed, should you record payments to the vendor outside of ConnectNow. Activity 1. Create New Vendors with the following Data: Name: ABC Computing–121 Byte Avenue. Novato, CA 94947 p.415-897-7417 Account Distributions: 7430.000.10.45.00 Telephone & Internet Expense E-10-10-45-00-7430-7430-000(50%) 7407.000.10.45.00 Office Service Contracts E-10-10-45-00-7400-7407-000 (50%) 1099 – Yes Adjusting Entries: 2013: $786.00 Name: Oasis Inn– no address available Account Distributions: 8101.000.10.45.00 Food and beverages Percent 100% Name: Verizon Wireless – PO Box 25505 Lehigh Valley, PA 18002-5505 p.800-922-0204 ConnectNow Ledger and Payables Training Guide - «Diocese» 15 Projects Set Up Projects You can create projects and affiliate specific bills, deposits, and journal entries with those projects to allow for easy reporting on special things such as a church festival, craft show, or other event. Projects allow you to track ledger and payables for specific events without having to create special accounts. 1. 2. 3. 4. 5. 6. Click the Setup button, and click Projects Type the Description “Spring Festival” for the project Leave Project Code blank Enter the Revenue Budget for the Project Enter the Cost Budget for the Project Click Submit. Using Projects, you will be able to track special events in the church without having to clutter your Chart of Accounts with redundant account entries. You’ll be able to Budget the project and report (Reports | Transactions | Projects) if your project came within your budget! ConnectNow Ledger and Payables Training Guide - «Diocese» 16 Bills Entering Bills Each time you need to print a check, record a manual or an electronic funds transfer, you must first enter the information for the bill. 1. Click Bills from the dashboard, then choose “New Bill” 2. Choose your Bank Account or Accounts Payable Account We will use the 1101.000.10.45.00 account 3. Use the drop down list to select the Verizon Wireless vendor. Type a “V” to quickly drop down to Verizon. 4. Enter the following Bill information Invoice Date: Invoice Number: 555-55555 Expense Account: 7430.000.10.45.00 Telephone & Internet Expense E-10-10-45-00-7430-7430-000 Amount of Bill: 154.23 5. Click Submit when completed NOTE: Bills that are paid on a regular basis can be Memorized. You can create multiple Memorized transactions each month with just a few clicks. Memorize a Bill Bills that are paid on a regular basis can be memorized. 1. On your Verizon Wireless Bill, click the Memorize button 2. Enter the following: Description: Pastors Cell Phone Bill Frequency: Monthly 3. Click the checkbox at “Use zero amounts on future transactions?” This is used if the amount of the bill changes each month 4. Click “Submit” ConnectNow Ledger and Payables Training Guide - «Diocese» 17 Now we will create a Bill for a vendor with Account Distributions. 1. Click Bills, then New Bill. 2. Choose your Accounts Payable Account or 1101.000.10.45.00 Operating Accounts 3. Click the dropdown to select our Vendor – Harters Trash and Recycling 4. When you are asked to apply the distributions already set up for this vendor, choose – OK 5. When the Vendor Distribution screen comes up, type in the total amount of $500 The bill will split the amount between the accounts you specified earlier. 6. You can use the automatic distribution or change the Bill to any Expense accounts you want to use. 7. Click the Memorize button to memorize this reoccurring Monthly bill. Use the Description Garbage Bill and use zero amounts on future transactions, then click Save. 8. The bill is ready to complete, hit Submit to finish the bill creation. You can flag a 1099 Vendor on the fly by checking the 1099 box. All previous transactions for this vendor will be included in their 1099. For 1099 Vendors already flagged, you can remove the checkmark at 1099 if this item should not be included in the 1099 calculation (i.e. Reimbursements). ConnectNow Ledger and Payables Training Guide - «Diocese» 18 Now we will create a bill for a New Vendor. 1. This Vendor is not in the system yet. To add them on the fly click the New Vendor link. 2. The window opens to enter the Vendor information Name: Advance Church Publications 4150 19th Avenue Chicago, IL 60812 3. After entering the vendor, Click Save 4. Enter the following bill information: Invoice Date: Today’s Date Invoice Number: 1234567 Expense Account: 7455.000.10.10.00 Missalettes and Books E-10-10-10-007400-7455-000 Amount of Bill: 50.84 5. Enter the Comment Brochures; this comment will print on the check stub. 6. Choose the Project Spring Festival. 7. Click Submit when completed. ConnectNow Ledger and Payables Training Guide - «Diocese» 19 Let’s say you ordered a dozen pizzas from Oasis for Youth Education’s Summer Blitz and you wrote out a manual check. 1. Find the Vendor Oasis Inn and enter the date of the check as the Invoice Date. Enter Invoice Number 397286. 2. Enter the Account 8101.000.10.45.00 Food and beverages and enter the amount of the check in the Amount column. 3. You can enter Summer Blitz in the Comments, if this is an event you don’t need to track under Projects. 4. Click the Assign Check Number link. 8101.000.10.45.00 Food and beverages 5. Enter the Check Number you used when you created the manual check, and the Check Date, and click Save. NOTE: The check information now displays on the bill window and this bill will not appear when printing checks. NOTE: You can also use this process to assign an electronic check number if you paid the bill online. Simply enter a check number that begins ETF, ACH or E and use the Transfer Confirmation Number provided by your bank, vendor or ePay provider. Checks that begin with alpha characters do not affect the next available check number feature. ConnectNow Ledger and Payables Training Guide - «Diocese» 20 Activity 1. Create Bills (edit if needed) and Assign Manual Check Number when indicated: ABC Computing – $275.00 o Date: Current o Invoice Number: 98-7654 o Expense: Use the Distribution you set up for this Vendor. Oasis Inn - $28.00 o Date: Current o Invoice Number: 397290 o Expense: 8101.000.10.45.00 Food and beverages o Project: Spring Festival o Check Number – 12474 Advance Church Publications - $500.00 o Invoice Number: 1234567 (note message regarding invoice number) o Expense: 7455.000.10.10.00 Missalettes and Books E-10-10-10-00-7400-7455-000 $250.00 & 7455.000.10.45.00 Missalettes and Books E-10-10-45-00-7400-7455-000 $250.00 o Check Number – EFT1234567 Bank: 1101.000.10.45.00 Operating Accounts A-10-10-45-00-1100-1101-000 Find a Bill 1. Click the Find Bill link on the Bill Entry Screen 2. Search for the bill by Vendor 3. Choose Verizon Wireless from the dropdown menu 4. Click the button next to the Verizon Wireless Bill we just created. ConnectNow Ledger and Payables Training Guide - «Diocese» 21 Checks Check Layout Before we begin our check creation process, we will need to make sure that our checks will print correctly from the system. 1. To set up your checks, click the Setup icon on your Ledger & Payables toolbar and choose Check Layout. 2. Select the Bank Account for the checks you’d like to set up. 3. Choose the option for the check stock you currently use. We will go with the Check-Stub-Stub 4. Click the Print Test Check button at the bottom of the display to print a test check on blank paper. 5. Once the check has been adjusted, click Save Settings and the system will store your adjustments. You will need to be sure you have the Adobe Reader installed, and since all reports are printed in a separate window/tab, be sure you have allowed pop-ups for this site. ese Dioc If, when you print the first time, you see that the pop-ups are blocked, click the Options for this Site button and choose Always Allow then attempt to print the report again. ConnectNow Ledger and Payables Training Guide - «Diocese» 22 Printing Checks Now, we will print checks for the bills we just entered. NOTE: If your church only uses Manual Checks, you can assign the check number directly on the Bill Entry Screen and you will not be required to go through this process to assign check numbers. 1. Select the Bank Account that the checks will be paid from and all of the bills associated with that bank will display. 2. Enter the Check Date and verify the Beginning Check Number (you may edit this number if needed). 3. Place a checkmark in the Pay column to pay the bill. x x x x 4. We are only going to pay a portion of the Harters Trash & Recycling bill, click the Edit button 7804.000.10.45.00 Rental Expense E-10-10-45-00-7800-7804-000 7602.000.10.45.00 Gas and Electricity 5. We will uncheck the Rental Expense E-10-10-45-00-7800-7804-000 item on the bill, then click Save. 6. Click Print Checks. NOTE: The system will hold the unpaid portion of the bill to be paid at a later date. ConnectNow Ledger and Payables Training Guide - «Diocese» 23 7. Review the checks listed for accuracy and click Create Checks. 8. Review the Check Number, Vendor and Dollar Amount. NOTE: You can edit the check memo on this page as well. 9. Click Print Selected. 10. The check will appear in a PDF window, allowing you to review. You will need to be sure you have the Adobe Reader X installed, and since all reports are printed in a separate window/tab, be sure you have allowed pop-ups for this site. ese Dioc If, when you print the first time, you see that the pop-ups are blocked, click the Options for this Site button and choose Always Allow and attempt to print the report again. 11. The check will appear in a PDF window, allowing you to review. 12. Click the Print button located in the upper left corner of the display. 13. Close the Check Print Preview screen. ConnectNow Ledger and Payables Training Guide - «Diocese» 24 14. If all of the checks printed successfully, in this case we will assume “yes”. 15. When you have confirmed the checks printed correctly, they are assigned to the bill. NOTE: If only SOME of the checks printed successfully and some did not (printer jammed, grabbed two checks, etc.) check the “Some Checks did not print correctly, First Incorrect check” and put the number of the first incorrect check. Click Submit. You will return to the check printing screen and you can attempt printing again. NOTE: If NONE of the checks printed successfully (printer ran out of ink, etc.), choose “I didn’t print any checks” and you will return to the check printing screen. Voiding Checks 1. 2. 3. 4. Click Checks icon on your Ledger & Payables toolbar. Select the Find Checks link. Click the Go button next to the Oasis Inn Check for $28. Click the Void Check button at the bottom of the display. 5. Enter the Void Date. Click on the Calendar to select date. If you need to re-issue a check for this bill, click the checkbox at Make a new copy of the original bill for repayment. Click Save. 6. A Journal Entry reversing the effect of the check will be automatically created and the original bill and check number will remain in the system for audit purposes. ConnectNow Ledger and Payables Training Guide - «Diocese» 25 Deposits Entering Deposits We are going to enter a deposit for Sunday’s Giving and a Special Fundraiser. 1. Click Deposits icon on your Ledger & Payables toolbar. 2. Select the Bank Account 3. Enter the Date of Today's Date. 4. ConnectNow will automatically insert a unique Deposit Number for you. 5. Enter the Income or Dedicated Accounts and enter the Amount of the deposit for that account. a. Income Account: 5101.000.10.45.00 Regular Collections I-10-10-4500-5100-5101-000 o Amount = $5296.12 b. Income Account: 5404.000.10.45.00 Fund Raising Programs I-10-1045-00-5400-5404-000 o Amount = $575.00 5101.000.10.45.00 Regular Collections I-10-10-4500-5100-5101-000 5404.000.10.45.00 Fund Raising Programs I-10-1045-00-5400-5404-000 6. The Second line of our deposit we want to assign a Project Code called “Spring Festival” 7. Click Submit. ConnectNow Ledger and Payables Training Guide - «Diocese» 26 Memorize Deposits Deposits made on a regular basis can be Memorized. If your church utilizes a Counter’s Sheet, a summary total of each account contributed to, enter those Income/Dedicated accounts and click the memorize button before clicking Submit and enter the Description of the deposit, the Frequency, the Next day and Final Date (if needed). If the amount of the deposit changes each month, click the checkbox at “Use zero amounts on future transactions?” Activity Create Deposit for - 1101.000.10.45.00 Operating Accounts A-10-10-45-00-1100-1101-000 Income Account: 5101.000.10.45.00 Regular Collections I-10-10-45-00-5100-5101000 Amount: $4230.00 Income Account: 5404.000.10.45.00 Fund Raising Programs I-10-10-45-00-54005404-000 Amount: $175.00 Memorize this Deposit with a Description of Weekly Offering and a Frequency of Weekly. ConnectNow Ledger and Payables Training Guide - «Diocese» 27 Importing a Payroll You can import a payroll text file (for example, from IOI, Paycheck, or ADP) and import the data in the file into a journal entry. The journal entry will credit a bank account and debit the salary/wages account. 1. Click Process. 2. Select the Import Payroll option. 3. Click Browse and then navigate to the payroll file provided by your payroll provider on your laptop or PC. Select the file and then click Open. 4. Click Import to bring the file into the application. If the file validates successfully, the payroll date is displayed and the Create Payroll Journal Entry button is displayed. 5. Click Create Payroll Journal Entry. A journal entry matching the contents of the text file is created and displayed. Journal Entries Entering Journal Entries We are going to enter two Journal Entries to practice their application and execution. First, we need to correct a Deposit. Account Type Asset Liability Net Asset Income Expense Dedicated Typical Balance Debit Credit Credit Credit Debit Credit Debit Effect + Increase - Decrease - Decrease - Decrease + Increase - Decrease Credit Effect - Decrease + Increase + Increase + Increase - Decrease + Increase Incorrect: Account: 5404.000.10.45.00 Fund Raising Programs I-10-10-45-005400-5404-000 Amount: $500 Corrected: Account: 5101.000.10.45.00 Regular Collections I-10-10-45-00-51005101-000 Amount: $500 1. Click the Journal Entries icon on your Ledger & Payables toolbar. 2. On the first line we Debit the Incorrect Income Account ()for $500.00 3. On the second line we Credit the Correct Income Account () for $500.00 ConnectNow Ledger and Payables Training Guide - «Diocese» 28 4. The Entry should reflect the following: 5404.000.10.45.00 Fund Raising Programs I-10-10-45-00-5400-5404-000 5101.000.10.45.00 Regular Collections I-10-10-45-005100-5101-000 5. Click Submit. Second, we have a Bill that use the wrong expense account Incorrect: Account: 8101.000.10.45.00 Food and beverages Amount: $480.40 Corrected: Account 7455.000.10.10.00 Missalettes and Books E-10-10-10-007400-7455-000 Amount: $240.20 Corrected: Account 7455.000.10.45.00 Missalettes and Books E-10-10-45-007400-7455-000 Amount: $240.20 6. Click the Journal Entries icon on your Ledger & Payables toolbar. 7. On the first line we: a. Credit the Incorrect Expense Account 8101.000.10.45.00 Food and beverages for $480.40 8. On the second line we: a. Debit the Correct Expense Account 7455.000.10.10.00 Missalettes and Books E-10-10-10-00-7400-7455-000 for $240.20 b. Debit the Correct Expense Account 7455.000.10.45.00 Missalettes and Books E-10-10-45-00-7400-7455-000 for $240.20 9. When finished, click Submit NOTE: Journal Entries MUST have equal Debit and Credit totals in order to be submitted. Credit Cards ConnectNow Ledger and Payables Training Guide - «Diocese» 29 Set up Credit Card Account Before you can begin to use a Credit Card, you must first designate a Liability account as a Credit Card. 1. To set up the credit card account, click the Accounts icon on your Ledger & Payables toolbar. Using the Quick Find, find the credit card account. If the account is not set up yet, add the credit card account from the full Chart of Accounts or create a new Liability account for the Credit Card. 2. Click the checkbox at Credit Card at the bottom of the Account Definition display, and click Submit. 3. To add a new Credit Card Entry, click the Credit Cards icon on the Ledger & Payables toolbar. 4. Choose the appropriate Credit Card Account for the charge incurred and select the Vendor and Date of the transaction. You can also enter an Authorization code for each Credit Card transaction. 5. Enter the Account, Amount, Comment and Project (if desired) and click Submit. Reconciling Credit Cards At the end of the month, you will receive a credit card statement from the Credit Card Company. You can reconcile the charges you’ve already entered, or edit/enter the transactions off the credit card statement itself. From Reports, click Transactions | Credit Card Charges and Preview Report. ConnectNow Ledger and Payables Training Guide - «Diocese» 30 Bank Reconciliation Before closing each month, we recommend that you reconcile your bank statement with the information entered in the ConnectNow Ledger & Payables System. 1. To begin a new Bank Reconciliation, click the Process icon 2. Select Bank Reconciliation and click Create a New Statement. 3. Enter the Bank Statement Information. Bank Account: Operating Accounts A-10-10-45-00-1100-1101-000 1101.000.10.45.00 Statement Date: Today's Date Ending Balance: $8901.50 Service Charge: $25.00 Interest Income: $0.25 4. Click Submit Operating Accounts A-10-10-45-00-1100-1101-000 1101.000.10.45.00 Today's Date NOTE: When you entered your Bank Account, you were prompted to insert the Interest Income and Service Charge Expense Account for the bank. This information will remain with each bank account and when you complete a Bank Reconciliation, the system will create an automatic Journal Entry recording any interest income earned or bank service charge incurred. ConnectNow Ledger and Payables Training Guide - «Diocese» 31 6. Clear the transactions shown. Bank Account 8901.50 7. When the Difference is zero, you’re reconciled! 8. Click Submit to save your bank reconciliation. 9. When the Bank Reconciliation is complete, click the Reports icon on your Ledger & Payables toolbar and select Transactions. Choose the Account Reconciliation Report. 10. Select the Date and Account that you completed the reconciliation and click Preview Report. This report will show you all cleared and uncleared transactions as well as a reconciliation summary. 11. Print this report and attach it to your Bank Statement and file away for your records. ConnectNow Ledger and Payables Training Guide - «Diocese» 32 Memorized Transactions At the beginning of each month or week, you’ll want to run the Memorized Transactions process to create any transactions that have a Next Date within that period. 1. Click the Memorized icon on your Ledger & Payables toolbar. 1. Click the Create from Memorized Transactions link. 2. Enter the Date in the Create Transactions as of field and click Submit. 3. Review the list of memorized transactions due by the due date you entered. If you do not want to create a particular transaction, remove the checkmark in the Create column. 4. Click the Submit button. All memorized bills, deposits, credit cards and journal entries you’ve selected are now created. You can edit any of the memorized transactions as needed by pulling up in each respective area of ConnectNow. Memorized bills can now be paid by going through the Create Checks process. Editing Memorized Transactions 1. Click the Memorized icon on your Ledger & Payables toolbar. 2. Click the Memorized Bills, Memorized Credit Cards, Memorized Deposits, or Memorized Journal Entries link. 3. You may delete the transaction by clicking the checkbox in the Delete column next to the transaction you no longer need. 4. You may edit the Next Date or Final Date if desired. 5. Click Submit. NOTE: If you need to change other elements about a Memorized Transaction (Vendor, Account, Amount, etc) you must re-memorize the transaction and delete the original memorized transaction. ConnectNow Ledger and Payables Training Guide - «Diocese» 33 Budget Entry 1. To enter/edit Budget information, click the Process icon on your Ledger & Payables toolbar and choose either Current Year Budget or Next Year’s Budget. 2. To save yourself some time, you may choose to have the system insert the budget figures for you, then simply edit the items that have changed. a. Clear Current Year’s Budget b. Same as Last Year’s Budget c. Same as Last Year’s Actual d. You can even choose to insert a percentage and have the system automatically update the entire budget! 3. Use the Monthly Budget/History Report and/or the Budget Worksheet from the standard report menu to help you determine which starting point will work best for your budget and what your new budget amounts should be. 4. After you have completed your budget entries, run the Monthly Budget/History Report again and review your information to check your numbers. NOTE: You can filter which accounts you want to edit by using the budget filter. You can edit by Type, Level or Category ConnectNow Ledger and Payables Training Guide - «Diocese» 34 Edit Budget Amounts You can view and edit the annual or monthly budget amounts for each month of the year. The system lets you edit budget amounts in either your Current Year or Next Year budget. For example, if you know that your costs for Books and Supplies are expected to increase in July and August, when you’ll be purchasing new items for the school year, you can edit those months to reflect the planned expenses in your budget. Complete the following steps to edit budget amounts. 1. Click the Process icon. 2. Click either the Current Year Budget or Next Year Budget option, depending on which year you wish to edit. The system will list all income and expense accounts. 3. Filter the Accounts you want to work with 4. Locate the line item you wish to edit. 5. To edit the annual amount, enter the new amount into the Next Year Budget or Current Year Budget field. 6. To edit monthly amounts, click its Edit Months button. a. The system will display the monthly budget amounts for the selected account. b. Click into the month you wish to edit and type the new amount. 7. Click the Close and then Submit button at the bottom of the screen to save your changes. ConnectNow Ledger and Payables Training Guide - «Diocese» 35 END-OF-PERIOD PROCESSING 36 Beginning Balances Entering Beginning Balances 1. Click the Process button 2. Choose Beginning Balance. 3. Enter the first day of your current fiscal year in the Date field. 4. We are going to increase the balances of our Building Asset Account and the Net Asset Account: o o Choose Account: 1101.000.10.45.00 Operating Accounts A-10-10-4500-1100-1101-000 Debit (Increase) by $10,000 Choose Account: 4901.000.10.45.00 Unrestricted Net Assets N-10-1045-00-4900-4901-000 Credit (Increase) by $10,000. 5. This will add the $10,000 balance of your 1101.000.10.45.00 Asset Account that was not previously in the system. 6. Click Submit when complete. Your entry should match example below. 7. If you have questions about the effect of a Credit or Debit on your balances, refer to the chart to verify your entry is correct. 4901.000.10.45.00 Unrestricted Net Assets N-10-10-45-00-49004901-000 1101.000.10.45.00 Operating Accounts A-10-10-45-00-1100-1101000 Account Type Asset Liability Net Asset Dedicated Example Checking Mortgage Equity Scholarship Typical Balance Debit Credit Credit Credit Debit Effect + Increase - Decrease - Decrease - Decrease ConnectNow Ledger and Payables Training Guide - «Diocese» Credit Effect - Decrease + Increase + Increase + Increase 36 END-OF-PERIOD PROCESSING 37 Reporting End of Month Reporting Once the Bank Statement has been reconciled to the system, you can now print End of Month reports for your records, and to share with your Pastor, Finance Committee, Church Council, etc. The reporting tools in ConnectNow Fund Accounting are easy to use, yet comprehensive. You will need to be sure you have the Adobe Reader X installed, and since all reports are printed in a separate window/tab, be sure you have allowed popups for this site. ese Dioc If, when you print the first time, you see that the pop-ups are blocked, click the Options for this Site button and choose Always Allow and attempt to print the report again. We recommend you print the following reports for the current fiscal month to store for your records. Bill List Check Register Deposit Register Journal Entry List Statement of Activities Statement of Financial Position Statement of Dedicated Accounts toolbar. 2. Standard Reports are grouped together by report type; Transactions, Statements, Accounts, Vendors, Budget/History and Analysis Graphs. 3. Click the button at the Report Type and the window will expand displaying all of the reports within the Report Group. 4. Report selection displays are similar for all standard reports. Select the report based on Date/Date Range, Account and/or Vendors information, and print the report with all Detail or just the Summary. 5. You can memorize the selections on any report by clicking the Memorize Report button. This will save your selection criteria. Then each month, simply select the memorized report and the system will update the information with the current month’s data. 6. Click Print Preview to view the report on screen. 7. Once the report is on screen, you can choose to print the report to your printer or export the report in a variety of formats, including PDF and Excel. 1. To print Reports, click the Reports icon on your Ledger & Payables ConnectNow Ledger and Payables Training Guide - «Diocese» 37 END-OF-PERIOD PROCESSING 38 Financial Statements from the following: Statement of Financial Position Year Begin Balance Balance Last Month Year to Date Balance This Month Change Year to Date Change Same Month Last Year Total Last Year Year to Date Last Year Blank Column When printing the Financial Statements, you again have many options. The Statement of Activities (a.k.a Income Statement) and Statement of Financial Position (a.k.a. Balance Sheet) reports can be found by clicking the Reports icon on your Ledger & Payables toolbar and selecting Statements. 1. Choose the Statement of Financial Position Report. 2. By default, all Funds and all Classes are selected when you initially view the report. However, you can make selections to multiple funds or classes by simply clicking the funds/classes you’d like to view on the report. Clear your selections by clicking the X in the upper right corner of the selection window. 3. You’ll be able to print up to five columns of information, selecting 4. You can also choose how you would like the report Grouped and Sorted. 5. Click Print Preview. 6. The Statement of Financial Position reports on Assets, Liabilities and Net Assets in the system. Sample in Detail Format ConnectNow Ledger and Payables Training Guide - «Diocese» 38 END-OF-PERIOD PROCESSING 39 Statement of Activities 1. Click the Reports icon on your Ledger & Payables toolbar and select Statements and choose the Statement of Activities Report. 2. By default, all Funds and Levels are selected when you initially view the report. However, you can make selections to multiple funds or levels by simply clicking the funds/levels you’d like to view on the report. Clear your selections by click the X in the upper right corner of the selection window. 3. You can also choose how you would like the report Grouped and Sorted. 4. You’ll be able to print up to nine columns of information on your Statement of Activities (a.k.a. Income Statement or Profit & Loss). If you select only columns 1 through 6, the report will print in a Portrait 8 ½ x 11) format. If you choose to print columns 7 through 9, it will print Landscaped (11 x 8 ½). You can choose from the following columns of information: 5. Click Print Preview. 6. The Statement of Activities reports on Income and Expense Accounts in the system. ConnectNow Ledger and Payables Training Guide - «Diocese» 39 Check Register In the ConnectNow Ledger & Payables System, we offer several “Transaction” reports that allow you to select, sort, and print various types of transactions. This will help you view only the Bills, only the Checks, only the Deposits, etc. and all of the information associated with the transaction. The Transaction Report that displays only the Checks is called a “Check Register”. It displays all of the information about a Check; the check number, date, amount, whether or not it’s cleared the bank, and all of the information about how it was expensed out. 1. To print a Check Register, click the Reports icon on your Ledger & Payables toolbar, choose Transactions and select the Check Register report. 2. Make your selections for the report on Date, Check Number range, Bank account and if you’d like to view the Summary or Detail information and click Print Preview. 3. The Check Register report lists only the checks and the detail information about each check based on your selections. ConnectNow Ledger and Payables Training Guide - «Diocese» 40 Account Balance The Account Balance report will display all transactions that affect the selected account; all deposits, journal entries, and checks… sorted by date with a running balance. It also displays if the transaction has cleared your bank, as well as any comments entered. 1. To print a Account Balance, click the Reports icon on your Ledger & Payables toolbar. 2. Choose Accounts and select the Account Balance report. 3. Make your selections for the report on Date and Account and click Print Preview. ConnectNow Ledger and Payables Training Guide - «Diocese» 41 Budget Reporting You can enter and edit budget information in ConnectNow Ledger & Payables for either the Current Year or for the Next Year. Before you begin, you may want to print a Monthly Budget/History Report for the head of each department in your Parish. The Department Head can review the budget and actual figures for each month of the fiscal year in an attempt to propose a budget for the next fiscal year. Once the budget has been entered, you can then reprint the budget reports for review. 1. To print the Monthly Budget History Report, click the Reports icon on your Ledger & Payables toolbar and choose Budget History, the Monthly Budget/History. a. Make a selection on Entity, Department or Account as needed. b. Select the Budget/History Items you would like to provide to your department heads. c. We recommend you enter a Report Subtitle indicating the appropriate department within the church. d. Click Memorize Report and create a Memorized Report Group called Budgets and add this report to that group. e. When you wish to print the budget reports next year, you will simply need to print the Memorized Report Group for Budgets. ConnectNow Ledger and Payables Training Guide - «Diocese» 42 End of Month Process Use the end-of-month processes to close a month. Monthly closings are required and will ensure that your annual reports are correct. Before you begin closing a period, ensure that all transactions for the period you are closing have been entered. IMPORTANT NOTE: Once a period is closed, no corrections to records in the closed period are permitted. The Church Administrator can make Journal Entries in a closed month to correct errors or make adjustments Bills that have not been paid are not included in month end closing and can be changed or paid at any time unless you are using the Accrual accounting system. 1. To end the month, click the Process icon on your Ledger & Payables toolbar and choose End of Month. 2. The system will display your current fiscal month and year. Click Submit. 3. The system will confirm that this will close the month and you will not be able to enter transactions for that closed month to ensure the historical audit trail. 4. Click OK to complete the end of month process. ConnectNow Ledger and Payables Training Guide - «Diocese» 43 End of Year Process Close a Fiscal Year The End-of-Year process will close the fiscal year. 1. It will also zero all Income and Expense accounts, and their difference will be transferred to the selected Net Asset account. 2. Reports can be printed for a prior fiscal year, but additional transactions cannot be entered for a prior fiscal year, except for authorized audit entries. 3. This ensures that a complete historical audit trail is created. 4. Click the Process icon. 5. Select End of Year. 6. Click the Go button. ConnectNow Ledger and Payables Training Guide - «Diocese» 44 Reference Information Cash or Accrual? ConnectNow Fund Accounting allows you to enter accounts payable information for both Cash and Accrual Accounting Methods. Cash Accounting method recognizes both income and expenses at the time when money is received or paid. Accrual Accounting method recognizes income at the time money is earned and expenses at the time they are incurred even though they may not yet have been received or actually paid in cash. If your parent organization requires either Cash or Accrual accounting method, your system will be set as requested by your parent organization. If your data is being converted from another application, the Accounting Method will be converted as well. If you are not converting your data and your parent organization has not made any requirements, be sure to inform your Sales Representative which accounting method you prefer. If not otherwise designated, the default accounting method will be Cash. Reporting Dedicated and Restricted Funds ConnectNow Ledger and Payables is specifically designed for churches and non-profit organizations, so it records and reports dedicated and restricted funds properly, while other commercial accounting applications simply do not have this capability. ConnectNow uses a feature called dedicated fund accounts to record those transactions. Dedicated accounts provide monthly and year to date totals for income and expenses without affecting the general operating budget. The beginning and current balance of dedicated fund accounts are automatically recorded in the Net Assets on the Statement of Financial Position. Dedicated fund accounts are also put into groups (Levels) and the Financial Position groups of Unrestricted, Temporarily Restricted, or Permanently Restricted funds to meet the reporting requirements of FASB 117, Financial Statements of Not-for-Profit Organizations. For example, assume that contributions are collected for support of a specific mission. When the contributions are received, they are deposited in the church checking account. This is recorded as a bank deposit with the income reported to the mission support dedicated fund account. This account will have a current month income and balance equal to the contributions received. ConnectNow Ledger and Payables Training Guide - «Diocese» 45 Assume that a payment is made to that mission via a check. This is recorded as a bill and as an expense to the mission support dedicated fund account. The checking account balance will be reduced by the check when the bill is paid using the cash accounting method. Under the Statements section of Reports, choose the Statement of Dedicated Accounts to view the beginning balance, current month receipts and expenses, year to date receipts and expenses and the ending balance for the dedicated accounts. The mission support balance will be reduced and the Unrestricted, Temporarily Restricted, or Permanently Restricted summary on the Statement of Financial Position will also be reduced. Unrestricted - ongoing fund with repeat budget needs and no donor imposed restrictions, example family ministries, memorials and weddings Temporarily Restricted - restricted until the time of its intended use or until the activity is completed, example building fund, choir robes and missions. Once the time restriction has expired or activity has been completed, the funds held may be released to general operating. Permanently Restricted – donor imposed permanently restricted for an ongoing specific use, example endowments, scholarships, and foundations. You may use the investment income but not the principal. The amount of mission support received and paid out can be displayed at any time, the church budget has not been affected by these funds, and the Statement of Financial Position report is correct. The same procedures would be used to record transactions for contributions and payments for other specific purposes such as choir robes, building funds, youth trips, collections for others, etc. ConnectNow Ledger and Payables Training Guide - «Diocese» 46 Class Name: ConnectNow Ledger & Payables Date: Evaluation Form We strive to continually improve our seminars to meet your needs. Your suggestions are extremely valuable to this process. If you rated any part of this course good or lower, we would appreciate knowing how we can improve. If you wish to remain anonymous, feel free to leave this section blank. Name: ____________________________________________________________ Parish: ____________________________________________________________ Signature: _____________________________ Date: ________________________ Instructor How would you rate the instructor’s presentation skills? How would you rate the instructor’s knowledge of the subject? Additional Comments: Excellent Good Fair Poor Class and Materials How well did the class meet your expectations? How would you rate the methods used to conduct this class? Overall, how would you rate this training session? Additional Comments: Excellent Good Fair Poor Which part of the class was most beneficial to you? Which part of the class was least beneficial? Which part of the class needed more time allotted? Which part of the class needed less time allotted? Please fax to: 734.205.1011 or mail to: 825 Victors Way, Suite 200, Ann Arbor, MI 48108-2830 ATTN: Karen ConnectNow Ledger and Payables Training Guide - «Diocese» 47