The Financial functional area is used to store and report on all the General Ledger data for the company. The main tasks performed include configuring the chart of accounts, managing checkbook balances, maintaining the fiscal calendar, and entering journal entries. The Financial functional area integrates across all functional areas.

Key Definitions

This section identifies common terms used throughout this Functional Area. This is not intended to be an alphabetized "Glossary of Terms" but is organized in a logical sequence to group similar terms together. The goal is to ensure we use common language that provides context to baseline NorthScope concepts.

Term	Definition
Fiscal Calendar	The Fiscal Calendar is a view that shows each Fiscal Period for a Fiscal Year, the starting and ending dates for each period, and a flag to indicate if the Fiscal Period is open of closed for posting. If a Fiscal Period is open, transactions with a GL Date that falls within the Fiscal Periods date range can be posted to the General Ledger. If a Fiscal Period is closed, transactions with a GL Date that falls within the Fiscal Periods date range can still be entered but they cannot be saved with a Status of 'Approved' or Ready to Post'. In addition, a Fiscal Period may have some series closed and some open. For example, a Period may be closed for Sales but the Financial series may still be open so that month-end journal can still be made.
Balance Sheet	A Balance Sheet is a snapshot of the financial position of a company at a specified time, usually calculated after every month/fiscal period, quarter, or year. The Balance Sheet has two main sections: 1) Assets and 2) Liabilities & Equity. When this formula is true, the Balance Sheet is in balance: [Assets] = [Liabilities] + [Equity].
Income Statement	An Income Statement (also known as a Profit and Loss Statement or a P&L) is the statement that shows profitability of the organization for a particular period of time, usually a month, fiscal period, quarter, or year.
General Ledger	A General Ledger is a bookkeeping ledger that stores, organizes, and summarized all the accounting data. The General Ledger is made of up of many Ledger Accounts (GL Accounts)
Control Account	A Control Account is a general ledger account containing only summary amounts. The details for control accounts are stored in a separate but related subsidiary ledger. The subsidiary ledger allows for tracking transactions within the control account in more detail. Individual transactions are posted both to the control account and the corresponding subsidiary ledger, and the totals for both are compared when preparing a trial balance to ensure accuracy. Control Accounts keep the general ledger free of details, while still maintaining correct balance for preparing the company's financial statements. The most common examples of Control Accounts include Accounts Receivable and Accounts Payable. The List of Control Account Types include: Brokerage: The accrued brokerage payable. The details are stored in Program Balances. Checkbooks: The balance of a bank account. The details are stored in the Checkbook Transactions inquiry. Customers: Current Accounts Receivable. The details are stored in the custom aging. Fishermen: Current fishermen payable/receivable. The details are stored in the Fisherman Balances inquiry. Fishermen Loans: Current Fishermen Loans Receivable. The details are stored in the Fisherman Balances inquiry. Freight: Current Accrued Freight (from Freight POs). The details are stored in the Purchase Order Lines List View. Growers: Current Grower Payable. The details are stored in the vendor aging. Inventory: Current inventory valuation. The details are stored in the Inventory valuation. Rebates: The accrued rebates payable. The details are stored in Program Balances. Retained Earnings: This is posted to during a year-end close. Vendors: Current Accounts Payable. The details are stored in the vendor aging.
Control Account Types	AP - Broker Balances FA - Fishermen Balances FA - Loan/Note Balances GA - Grower Balances AP - Vendor Balances AR - Customer Balances Checkbook Retained Earnings

Master Files

A Master File is a collection of records, pertaining to a subject in an information system. They are permanent files, that are periodically updated, and serve as a source of data used on other Master Files or Transactions. Examples of Master Files include: Customers, Vendors, Items, GL Accounts, etc. This section identifies each Master File (including a link to the Page Help), the Parent Folder it is listed under in the menu, and links to related User Guides.

Master File	Parent Folder	Overview	Related User Guide
Fiscal Periods	Configuration	Fiscal Periods: Fiscal Periods represent budgetary or accounting periods that fall within Fiscal Years. These often match the calendar where there are 12 periods, matching the calendar months. In organization where the fiscal year does not match the calendar year, Fiscal Periods may or may not match the number of days in a calendar month. Every transaction that posts to the general ledger contains a 'GL Date' and that date identifies both the Fiscal Year and Fiscal Period the transaction was posted to the general ledger in. Fiscal Years: A Fiscal Year is a one-year period that companies use for financial reporting and budgeting. A Fiscal Year is most commonly used for accounting purposes to prepare financial statements. Fiscal Years often start on January 1st and end on December 31st. However, not all Fiscal Years correspond with the calendar year. For example, a company may run their Fiscal Year from May 1st - April 30th. Once a Fiscal Year has been determined, it is unlikely to ever change outside of a company sale and/or merger. Areas to Review Describe what users do from here each month Describe what users do from here each year Describe how these setting impact NorthScope	Managing the Fiscal Calendar
GL Account Format	Configuration	A GL Account Segment is a specific part of a GL Account. Every GL Account contains at least 1 segment referred to as the "Natural Account" but some companies require additional structure to segment Natural Accounts by things like Companies, Divisions, Departments, etc. GL Account Segments are typically separated by "-" (e.g. 2000-00). Areas to Review Adding Segments and when Segments are added Identifying the Natural Account and what it means Adding Segment Values and when Segment Values are added
GL Account Class	Configuration	GL Account Classes are used to classify one or more GL Accounts into a group with other similar behaving accounts and for organizing financial reports. For example, you may have several revenue accounts that are all classified as "Sales" Accounts. Areas to Review Describe what an Account Class 'Category' is used for Describe how the 'Sort' field is used Describe adding Account Classes
GL Accounts	Setup	A General Ledger Account (synonymous with Account and GL Account) is a unique identifier used to store specific accounting data in the General Ledger. A General Ledger is made up of multiple General Ledger Accounts. Areas to Review Posting Type - Balance Sheet vs Income Statement Category - Based on the Posting Type Account Class - Based on the Category Account - Must follow the Account Segment Setup Account Description Control Account Type Typical Balance Inactive Use In Options (GL and AP are used, the others are not)
Checkbooks	Setup	Checkbooks represent individual bank accounts (checking, savings, petty cash) that have funds deposited into, or payments made out of, that are reconciled to a bank statement. They are used in the Financial, Fisherman Accounting, Grower Accounting, Purchasing, and Sales Functional Areas to support receiving payments from customers, making payments, deposits, and other bank transactions. Areas to Review Types of Checkbooks typically setup Checkbook Currency Cash Account - Lookup of Active Checkbook Control Accounts Checkbook Balance - Current Balance of all 'Posted' Checkbook Transactions Last Reconciled Balance - Balance of last reconciled bank statement Next Check # Enable ACH - If yes the ACH Fields must be properly configured including: Next ACH#, Bank, Name on Account, Routing #, and Account #
Project Class	Configuration	Project Classes are used to classify one or more Projects into a group with other similar behaving Projects and for organizing reports. For example, you may have several individual Projects that each tracking a separate Capital Improvement Project. Areas to Review Adding Project Classes
Projects	Setup	Projects are used to associate revenue and expenses to specific objects. They are most commonly associated with Capital Improvement projects but can be used to associate costs with things like plant equipment, vehicles, and trading related sales. Areas to Review What these are used for and where these are used in NorthScope Assigning Project ID's - From the Preference Project Class Project Start Date - Required Project End Date - Not required Project Budgets Open to Sales - Not plugged in Open to Purchasing Always open to the GL
Preferences	Configuration	Preferences are used to set default values, enable features, and/or control system behavior within a Functional Area. Preference Values seldom changed after they are initially set unless an organization changes their operations and/or begins using different NorthScope Features. Key Preferences: Retained Earnings GL Account

Transactions

A Transaction is a record that can be posted. When transactions are posted, they update the General Ledger, On Hand Item Balances, and/or or a subsidiary balance (Customers, Vendors, Brokers, Fishermen, or Growers) This section identifies all the Transactions (including a link to the Page Help), an overview of suggested training topics for each, and links to all applicable User Guides.

Transaction	Overview & Training Outline	Related User Guides
Journal Entry - Manual	A Journal Entry is a record of a business transaction that is stored in the General Ledger. A journal entry consists of a unique reference number (Journal ID), Date, a description of the transaction, and two or more Journal Lines consisting of either a Debit Amount or Credit Amount. Areas to Review What types of Journal Entries are manually entered Who makes them Header Comment Header Reference Line Items - GL Accounts Entering Amounts Distributing to a Project Line Comments Multi-Currency Journal Entries
Journal Entry - Accrue & Reverse	An Accrue & Reverse Journal Entry (aka Reversing Entry) is an automated journal entry, typically made on the first day of an accounting period, to remove accrual adjusting entries that were made at the end of the previous accounting period. Reversing Entries are used because they: Reduce the chance of double-counting revenues and/or expenses, and Allow for more efficient processing of the actual invoices that will be processed in the new accounting period Areas to Review Identify the differences from Manual Journal Entries Identify examples of Accrue & Reverse Journal Entries
Journal Entry - Reverse/Correct	A Reversing Journal Entry is an automated journal entry that, when processed, reverses a previously posted Journal Entry. In a Reversing Journal Entry, all Debit amounts are converted to Credits and all Credit Amounts are converted to Debits. Reversing Journal Entries post to the General Ledger on the date specified as the 'Reverse Date' with no additional user intervention. While the same thing could be accomplished with a manually entered Journal Entry, the Reversing Journal Entry speeds up, and ensures the data entry is accurate. These are most typically used when a manually journal entry just need to be removed from the General Ledger. A Reverse & Correct Journal Entry creates two Journal Entries when processed: Part 1: An automated journal entry that reverses a previously posted Journal Entry by converting all Debit amounts to Credits and all Credit Amounts to Debits, as of the date specified as the 'Reverse Date', with no additional user intervention. Part 2: An unposted journal entry, in the status of New, that is a clone of the original Journal Entry that was reversed. The "Reverse & Correct" is used when a previously posted Journal Entry contains one or more errors. Part 1 reverses the incorrect Journal Entry and Part 2 provides a starting point for a user to edit and re-post. Areas to Review Overview of why these are needed Describe what happens when a Journal Entry is reversed Describe what happens when a Journal Entry is corrected Describe what Type(s) should be Reversed and which should not
Checkbook - Adjustment	A Checkbook Adjustment is a transaction to enter adjusting/correcting entries that impact a checkbook balance. Checkbook Adjustments specify the overall adjusting amount as either a positive (DEBIT) or negative (CREDIT) amount. The overall adjustment amount posts to the Checkbooks associated 'Cash' GL Account and is offset to one or more GL Accounts. Areas to Review Overview of why these are needed What happens to the General Ledger when these are posted What happens to the Checkbook Balance when these are posted How these are Reconciled
Checkbook Deposit	A Checkbook Deposit is a transaction to group one or more previously posted 'Payment Receipts' together to reflect what was actually deposited into your bank account. Areas to Review Overview of why these are needed What happens to the General Ledger when these are posted What happens to the Checkbook Balance when these are posted What happens to AR & FA Payment Receipts when these are posted How these are Reconciled
Checkbook Transfer	A Checkbook Adjustment is a transaction to A Bank Statement, supplied by the bank The financial records recorded in your system. A checkbook reconciliation is a useful financial control to confirm the checkbook control accounts within the general ledger are accurate and to protect against fraud. Reconciliations are useful for explaining the difference between two financial records or account balances. Some differences may be acceptable because of the timing of payments and deposits. Unexplained or mysterious discrepancies, however, may warn of fraud or bad accounting practices. Companies may reconcile their records daily, monthly, or annually. Areas to Review Overview of why these are needed What happens to the General Ledger when these are posted What happens to the Checkbook Balance when these are posted How these are Reconciled
Checkbook Reconciliation	A Checkbook Reconciliation is a balancing of two sets of records: A Bank Statement, supplied by the bank The financial records recorded in your system. A checkbook reconciliation is a useful financial control to confirm the checkbook control accounts within the general ledger are accurate and to protect against fraud. Reconciliations are useful for explaining the difference between two financial records or account balances. Some differences may be acceptable because of the timing of payments and deposits. Unexplained or mysterious discrepancies, however, may warn of fraud or bad accounting practices. Companies may reconcile their records daily, monthly, or annually. Areas to Review Overview of why these are needed What transactions are Reconciled What are the requirements to post a Reconciliation What happens to the Checkbook Balance when Reconciliations are posted

Routines

Routine	Overview	Related User Guides
Opening / Closing Fiscal Periods	What is an Open Period vs a Closed Period? When are Periods opened and closed? What happens when a Period is closed? Series - Financial Series - Sales Series - Purchasing Series - Inventory Series - Payroll What factors determine opening and closing periods? Who manages this?	Month-end Close Procedures
Year-End Close	What is an Open Year vs a Closed Year? When are Years opened and closed? What factors determine opening and closing years? Who manages this? What happens when a Year is closed?	Year-end Close Procedures
Year-End Reverse	Why you would reverse a Year-end What happens when you reverse a Year-end

Inquiries

An Inquiry is a List View of historical transactional data that is used for ad-hoc analysis. Once a record has been found, users can open it and/or use it to drill down to more details. Inquiries are most commonly used to show the historical data associated with a List View (e.g. Sales Orders, Order Items, AP Invoices, Invoice Lines). Inquiries allow users to manipulate search parameters, sorting, grouping, and column sequence. Inquiries can be exported to Excel. This section identifies each of the Inquiries used throughout this Functional Area, listed by Inquiry Type, with an overview for each.

Inquiry Type	Inquiry Name	Overview
General Ledger	Journal Entry History	An inquiry that contains a list of all the Journal Entries that hit the General Ledger.
General Ledger	Journal Line History	An inquiry that contains all the Journal Entry Lines from all the Journal Entries that hit the General Ledger. This inquiry can be run from the Inquiries menu or as a drill through from the GL Account Balances inquiry
Balances	GL Account Balances	An inquiry that is run from the GL Account Balances page, that shows all the GL Accounts and their current balances.
Balances	GL Account Balances by Period	An inquiry that that shows the balances for one or more GL Accounts by GL Period. This inquiry can be run from the Inquiries menu or as a drill through from the GL Account Balances inquiry.
Checkbook	Checkbook Reconciliation Inquiry
	Checkbook Register Inquiry	An inquiry that shows each individual payment Payment made from a Checkbook.
	Checkbook Transaction Inquiry	An inquiry that shows all the transactions that impact the Checkbook Balance and will be included on a Reconcile including: Adjustments, Deposits, Transfer: Sent, Transfer: Received, and Payments made. In this inquiry ACH Payments are shown at the 'Batch' level, not by individual payment.
Other	ACH Batch Inquiry	An inquiry to show each ACH Batch that was created. By default, this inquiry shows ACH Batches that have not had the text file created.
Other	Project Transaction History	An Inquiry to show all the transaction line items that have posted with a Project assigned. This includes AP Invoices, AP Credit Memos, and Journal Entries.

Reports

Reports contain data that has been formatted for a specific purpose. For some reports, users are able to manipulate selection criteria while others print just by selecting records. Users are not able to change the actual layout of the page. This section identifies each of the Reports that are shipped in this Functional Area. Reports are grouped by Report Type and include the Report Name and the Display Name as well as an overview for each report.

Report Group	Launches From	Report Type	Report Display Name	Overview
ACH	Print Dialog	Export Only	ACH File	A text file that contains the details for the bank to issue ACH Payments. This is generated when you are ready to upload the ACH text file to your bank.
		Check	ACH Remittance	A report that takes the place of a Check & Check stub for ACH Payments. This is generated, and given to the Fisherman or Vendor, when you issue an ACH Payment.
		Transaction Review	ACH Batch Detail Edit	A report that shows the detail payments that make up one or more selected ACH Batches.
Bank Reconciliation	Print Dialog	Transaction Review	Cleared Transactions	A report that identifies all the transactions that are currently assigned to a Reconciliation Transaction. This is typically printed and filed, as backup, with the Bank Statement you just reconciled.
		Transaction Review	Outstanding Transactions	A report that identifies all the transactions that are not reconciled and not currently assigned to a Reconciliation Transaction. This is typically printed and filed, as backup, with the Bank Statement you just reconciled.
		Transaction Review	Reconciliation Summary	A report that shows the summary totals for each type of reconcile balance. This is typically printed and filed, as backup, with the Bank Statement you just reconciled.
	Reports Page	Transaction Review	Outstanding Transactions by Checkbook	A report that identifies all the checkbook transactions that have not been included on a Reconcile transaction. This is typically printed and reviewed when a Reconcile has been completed. This identifies all the transactions that have not cleared the bank. It is also used to determine if the "Checkbooks Cash Account" is in Balance. [GL Balance/Trial Balance] = [Bank Statement Ending Balance] + [Undeposited Receipts] + [Outstanding Deposits] - [Outstanding Payments] + [Outstanding Adjustments].
	Reports Page	Transaction Review	Undeposited Receipts	A report that identifies all the Payment Receipts that have been posted but not yet assigned to a Deposit.
Financial Reports	Reports Page	Transaction Analysis	Trial Balance	A Trial Balance is a bookkeeping worksheet in which the balance of all General Ledger Accounts are compiled into an ending balance that is either a Debit or (Credit) amount. To be considered in balance, when run for all General Ledger Accounts the Ending Balance column must total 0.00. A company prepares a Trial Balance periodically, usually at the end of every reporting period.
		Transaction Analysis	Balance Sheet	A Balance Sheet is a snapshot of the financial position of a company at a specified time, usually calculated after every month/fiscal period, quarter, or year. The Balance Sheet has two main sections: 1) Assets and 2) Liabilities & Equity. When this formula is true, the Balance Sheet is in balance: [Assets] = [Liabilities] + [Equity].
		Transaction Analysis	Income Statement	An Income Statement (also known as a Profit and Loss Statement or a P&L) is the statement that shows profitability of the organization for a particular period of time, usually a month, fiscal period, quarter, or year.
Journal Entry	Print Dialog	Transaction Review	Journal Entry Edit List	An edit report that shows the details of one or more journal entries.
Journal Entry	Reports Page	Transaction Analysis	Ledger Account Detail	A report to show the transaction line item details that make up a GL Account Balance.
Year-End	Reports Page	Transaction Analysis	Beginning Balances	A report that shows all Beginning Balances for every Balance Sheet Account at the start of a new GL Year.

Configuration Sequence

This section identifies a logical sequence for configuring this Functional Area. This is not intended to be a detailed project plan, but rather a simple guide for what need to be configured.

Seq.	Page	Navigation Path	User Guide	Blocked By	Required
1.	Fiscal Periods	Financial → Configuration → Fiscal Periods	Managing Fiscal Periods		Yes
2.	GL Account Format	Financial → Configuration → GL Account Format	Configuring your Chart of Accounts		Yes
3.	GL Account Class	Financial → Configuration → GL Account Class			Yes
4.	GL Accounts	Financial → Setup → GL Accounts		GL Account Format GL Account Class	Yes
5.	Checkbooks	Financial → Setup → Checkbooks	Configuring Checkbooks	GL Accounts	Yes
6.	Project Class	Financial → Configuration → Project Class	Configuring Projects
7.	Projects	Financial → Setup → Projects	Configuring Projects	Projects
8.	Preferences	Financial → Configuration → Preferences		GL Accounts	Yes

NorthScope

Financial: Training Guide