Vantagepoint - Transactions · » This automated process also creates intercompany accounts...

VPVI-24Tips and Tricks for Managing Multicompany in Vantagepoint

Mike Klaus - DeltekCONFIDENTIAL © Deltek, Inc. All Rights Reserved. 1

Agenda

CONFIDENTIAL © Deltek, Inc. All Rights Reserved. 2

» Quick Basics of Multicompany

» Chart of Accounts

» Consolidated Financials

» Help with Tax Codes

» Decisions for Intercompany Billing

» Controlling Transactions

» Managing Currency Exchanges

» Multilingual Feature

Quick Basics of

Multicompany


Advantages of Multicompany

4CONFIDENTIAL © Deltek, Inc. All Rights Reserved.

» Allow your entire enterprise to share resources simply and efficiently, increasing utilization and profitability

» Automatically track intercompany transactions and post transfer price between companies

» Keep finance and cash transactions at “arms-length”, yet still share information about Clients, Vendors, Competition, Prospects, Bidding, Marketing Campaigns…

» Produce consolidated financial reports that include data from all or selected companies in the enterprise

Terminology


» Company – separate legal entity

» Enterprise – the umbrellas under which multiple companies operate

» Active Company – the company you selected at login or when you switched companies – the company you are currently working in

» Home Company – for Employees, the company responsible for their time and expense reports and for paying that employee

» Associated Company – Another company the employee may have belonged to in the past, but is not presently the Home Company

» Initial Company – when you first enable multicompany, the existing data will all belong to this first or initial “company”

All Hubs (Info Centers) are Shared by all Companies


» Activities

» Boilerplates

» Contacts

» Employees

» Firms – combination of

Clients and Vendors

» Marketing Campaigns

» Projects

» User Defined Hubs

Other Items shared by all Companies


» Labor Categories

» Labor Codes

» Plans

» Proposals

» Approval Center

» Non-financial Reports

» Fiscal Periods

» Resources

» Rate Tables

» Dashboards

» Chart of Accounts

» Organization codes –individual codes can be used with any company, combinations are specific to a company

Items Unique to each Company


» Bank Codes

» Accounts Payable Liability

Codes

» Tax Codes

» Benefit Accruals

» Holiday Calendar

» Invoice Numbers

» Time - Schedule, Categories &

Groups

» Time Analysis

» Expense Categories & Groups

» Transactions and Postings

» Units

» Accounting Processes

Enable Multicompany and Set Up the Initial Company


» When you enable Multicompany, an Initial Company code is placed at the front of your Organization Code.

» All existing organization codes belong to this Initial Company

» After Initial Company is setup, add new companies by copying many of the Initial Company settings.

» Password is needed from Deltek Customer Care.

» CAUTION – this CANNOT be undone, so tread carefully. Highly recommended to get support from a multicompany expert and doing it in a test database first.

Enabling Multicompany


CAUTION – this

CANNOT be undone,

so tread carefully.

Highly recommended

to get support from a

multicompany expert

and doing it in a test

database first.

Navigation in VantagepointChange Company/Change Period


» Change Company

» Change Period

Chart of Accounts


Chart of Account Setup


» Account can be Available to

all Companies

» Account can have Limited

Company Access

Local Charts of Accounts


Some countries have statutory requirements to use a specific chart of

accounts

Companies in these countries can setup their own Accounts with Limited

Company Access.

Best practice is to then make all other Accounts Limited to the other

Companies

Another Solution for Local Charts of Accounts


Account Group Table can be established for the Country.

» Create Account Group Names (include the local number in the name) that will represent the local chart of account

» Create an Account Group Table, assigning corporate GL Accounts to Account Group Names for the local chart of account

» Select this Account Group Table when preparing General Ledger reports: » Balance Sheet» Income Statement» Account Analysis» Trial Balance

Another Solution for Local Chart of Accounts


Financial Reports in Arabic


Create Account Group Names with Arabic Descriptions



Create Account Group Table Defining the Report



Create Report Favorites using the Account Group Table and

changing all other labels to Arabic



Create Report Favorites changing labels to Arabic

Consolidated

Financials


Consolidations


Unlimited

Number of

GroupsGroup Reporting

Currency

Consolidations – Eliminations & Translations


System Eliminates Inter-company

AR, AP, Revenue and Costs

• Select Translation Exchange Type For Each Account Type

• Override Accounts are Exceptions Within Their Type

Consolidations – Exchange Rates


• Initial Setup Requires Accurate History

• First Run Will Be From Period 0

• All Period Average, Period End and Historical Rates need to match your old spreadsheet!

• Gain and Loss on Translation is Generated Automatically for Each Group

• Assumes balanced Trial Balances

• Assumes correct inter-company balances

Consolidations - Processing


• Gain and Loss on Translation is

Generated Automatically for Each

Group

• Tolerance for each company is

entered to the Gain/Loss Account,

by company

• Tolerance for overall group is

entered to the Gain/Loss Account,

to the company with the largest

Gain/Loss

Consolidations - Processing


Accommodating Different Accounting Rules When Consolidating Financials


Reporting in-country must be different than what is reported on the corporate books in the USA. Some examples are:

» Purchase Accounting

» Minority Interest

» Joint Venture Accounting

» “Top-side” entries

Can be addressed with special Consolidation Companies

For example – in Poland:

» SPL – Polish Company – maintains statutory books for Poland

» SPP – Poland Consolidation – maintains corporate adjustments

» SPL + SPP = corporate (US GAPP) books for Poland


AssetsCashARCurrent AssetsLong-term AssetsAccumulated D&AIntangiblesOther Assets

Total Assets

LiabilitiesAP and Accrued ExpenseCurrent LiabilitiesLong-term LiabilitiesOther Liabilities

Total Liabilities

Net WorthCapitalEarningsOther Net Worth

Total Net Worth

SPL – Poland

1,000,0002,000,0001,000,000

-1,000,000

1,000,0004,000,000

1,000,000250,000750,000250,000

2,250,00

750,000250,000750,000

1,750,000

SPP – Consol

750,00025,000,000

250,00026,000,000

1,000,000150,000

250,000

850,000250,000

1,500,000

US GAAP

1,000,0002,000,0001,000,000

-250,00025,000,0001.250,000

30,000,000

1,000,000150,000650,000250,000

850,000250,000

1,500,000

Accommodating Different Accounting Rules When Consolidating Financials

Help With Tax

Codes


Sales and VAT for Multicompany


Get Professional Advice

Each Company has Tax ID

Number and a Set of Tax Codes

Default Tax Codes show on all

Transaction Files

Sales and VAT for Multicompany


• Tax Codes Can Be Used

for Intercompany

• Must have sub-

ledgers activated

• Select applicable

transactions

Zero Rate Tax Codes


In most countries with Value Added Taxes (VAT, IVA, GST, etc.) there is a need to include various transactions on tax reports that are non-taxable or subject to a tax rate of zero.

Examples of zero rate tax codes are:

» Tax Free

» Not Reportable

» Non-registered client/vendor

» Tax Exempt

» Out of scope or out of country

» Retained taxes

Zero Rate Tax Codes


Zero rate tax transactions appear on the Tax Analysis report to reconcile

with other reports

Tax to Originating Vendors


Enable Originating Vendor for Employee Expense and AP Vouchers

When reimbursements

are paid to employees or

credit card companies,

the “vendor” is not who

actually handled the tax

transaction.



Run the Tax Analysis Report with the option to “Run Report Based on

Originating Vendor” selected in report Options

Controlling

Transactions


• Security Enhancement for Company

Specific Access

• Enter – no reporting, user can

Delete unposted files

• Reporting – Transaction Lists

• Post – Permanent Changes to

database

• Company Access for “ALL” or

Specific Company

Controlling Transactions


Kind of Access by

Transaction Type Company Specific Access

• Security control is slightly different in Vantagepoint.

• Vision had separate Menu Items for Entry, Lists, Posting…. Now

these are all in the Transaction Center.

• Before upgrading to Vantagepoint learn about the transition of your

User Roles for Transactions.



• Transaction Auto Numbering is Company Specific

• AP Vouchers

• Journals, Bank Receipts, Bank Payments

• Invoice Numbering





• Transaction Approvals are

Company Specific

• Transaction Date

Validation by Company

• Require Dates in

Active Fiscal Year

• Require Dates in

Active Accounting

Period



Decisions for

Intercompany

Billing


Intercompany Billing or Split Revenues


» Intercompany Billing is the process of redistributing general ledger financial information between companies that share labor or expense resources on the same project.

» The Intercompany Billing process depends upon transfer pricing rules you determine: On which Income Statement will costs remain? How much revenue will a supplying company get?

» This automated process also creates intercompany accounts receivable (due from) and intercompany accounts payable (due to) entries on the general ledger, keeping each company's Balance Sheets in balance.

» You have an option to keep Detailed Subledger of the due from and due to amounts, by project and invoice. These intercompany invoices and vouchers do not affect the regular AR and AP subledgers.

• Split Revenue Alternatives

• Separate WBS for each

company, split the contract and

each company earns their own

revenue on their own costs

OR

• Use Inter-Company Billing and

move revenue and costs back to

the originating company.

Decisions for Inter-Company Billing


JE moves revenue

or expense

Labor Adjustment

moves labor back to

employees’ company

Intercompany Billing Setup


Reclass only. It is simple. Leaves the

costs with the borrower.

• Transfer Costs Alternative 1:

• Reclass raw costs as Account

Receivable and Account

Payable

OR



No accounts here

Originating company

gets no costs, just AR

• Transfer Costs Alternative 2:

• Do not create a labor

adjustment, just create a journal

entry

• JE credits originating

company for overhead or

handling fee



JE credits

originating

company

JE’s accounts are

overhead accounts

Transfer Costs Alternative 3


Create Labor Adjustment

will move the labor cost

back to the supplier

company.

So each Org will need

a Transfer To Project

and a Transfer From

Project.

Tip for Transfer To/From Projects’ Posting


Set a special Account for

the Labor Adjustment to

use. (Labor Posting Options in

Vantagepoint; Time Analysis

Configuration in Vision.)

If Subledgers for Intercompany are Needed


» Special, Dormant Vendors are needed for the Intercompany Voucher

This is a poor example

– each Company

should have a different

vendor.

Entries Between Each Company Pair


» To Create an IC Invoice and IC Voucher in IC Subledger

Sub Ledgers Offer “Arm’s Length”

Invoices

• Be aware of who owns

currency risk

• Billing Currency and Payment

Currency differences cause

gains and losses

Tip for Subledgers


Billing Currency is USD, so

Invoice and Voucher are USD.

Paid in EUR causes Receiving

Company gain or loss

Managing Currency

Exchanges


• Use XE.com Subscription to Obtain Daily

Exchange Rates

• Keep All Exchanges Going “One Direction”

• Direct Exchange Rates are always used

before Indirect Exchange Rates if the

date is on or before the Transaction Date

Managing Currency Exchange


Direct Exchange Rate: EUR Transaction to USD

for any Transaction Date on or after March 9, 2014

Direct Exchange Rate: USD Transaction to EUR for

any Transaction Date on or after March 15, 2014

1. An exchange rate or exchange date

override, if one has been specified.

2. A direct exchange, based on Daily

Exchange Rates.

3. An inverse exchange, based upon Daily

Exchange Rates.

4. An exchange calculated using triangulation.

Transaction Currency Exchange Hierarchy


Multilingual


Multilingual for EVERYONE


» All Eight Languages are Available in Vantagepoint

» English – US English – International French - Canadian

» French – France German Dutch

» Portuguese Spanish

» In Vantagepoint 3.0, General System Settings, you can limit the languages available to users and you can set a Primary Language

» Login Language for a User is Determined with the Hierarchy:

1. If only one language is allowed per general system settings, then use that one language

2. Check last logged in language for a language. Use it if it is an allowed language

3. If local storage language is not allowed for the database, then check browser settings to make the best guess for language. Use that language if it is allowed

4. If browser settings language is not allowed, or if no language can be determined from browser settings, then check for and use primary language

5. If no primary, then use first available allowed language

Vision Multilingual for EVERYONE


» Vision – it is a purchased module. Users can select any language you have licensed either from the login screen or from the Startup tab of the Vision Options screen.

» Note, the language links appear on the login screen even if you have not licensed any languages. If users select another language from these links, they will receive an error message when trying to login.

» If an employee’s regional settings indicate a language that is available from Deltek, this will automatically be selected for them at their first login.

» If you have users with these language settings for languages you have not licensed from Deltek, instruct them to select English from the login screen to avoid receiving the error message.

Multilingual


Deltek has translated all standard labels in the application and on

reports.

» Any labels that you have changed in some languages, but not all

languages, could show up with the older/default text, or will display a

label indicating that they have not been translated.

Multilingual Labels and Lists (Code Tables)


» Default Labels and Lists are all Translated

» If you modify a Label or List, you need to modify each language you

use. Examples are:

• Project/Phase/Task

• Labor Categories

• Labor Codes

• User Defined Revenue Methods

Multilingual Labels and Lists (Code Tables)


» To set labels for all these areas:

» Login using the alternate language

» Use the standard tools (Screen Designer, Lists, Labels, Settings) to

enter the desired text

Multilingual Invoice Templates


» To Create an Invoice Template in a Language:

» Login using the alternate language

» Use the Invoice Template Editor

» Invoices based on that template are generated them in that language, even if the person who initiates the billing process is currently logged in with a different language.

Vantagepoint - Transactions · » This automated process also creates intercompany accounts...

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