A quick and successful integration between DEAR and other accounting software depends largely on the quality of the initial setup. One of the critical elements of the initial setup is the Chart Of Accounts. DEAR generates accounting transactions in the background and, at a later stage, these transactions are exported to your chosen accounting software. All settings must be set up before any initial data load occurs (supplier, customer, products, stock on hand, buys, sells, and so on).
DEAR allows changing accounts and tax rules from default for each transaction. This allows users to design an effective Chart of Accounts in order to carry out successful analysis and managerial decisions.
NOTE: The order of priority for account settings in financial transactions is:
- Order line (highest priority, will override all other assigned accounts/tax rules)
- Product
- Sale/Purchase order document header
- Supplier/Customer.
Prerequisites
- None, this is one of the first steps in DEAR. We recommend reading the Getting Started Guide for more information.
- Familiarity with Tax Rules.
- Familiarity with Accounts and Chart of Accounts.
Table of Contents
- Required Accounts
- Account Mapping
- Product-level Customization
- Supplier-level and Customer-level Customization
- Purchase/Sale Invoice-level Customization
- Chart of Account permisssions
Required Accounts
DEAR Systems requires the following accounts (with the account settings listed below) to be available to function correctly.
- If you are using DEAR standalone, you can create accounts in DEAR by going to Settings → Reference Books → Financial → Chart of Accounts.
- If you are using Xero/QBO, you must create accounts in Xero/QBO. They will then be imported into DEAR when you next synchronise your accounts. You can view your Chart of Accounts by going to Settings → Reference Books → Financial → Chart of Accounts, but it will be read-only.
You can add more accounts to suit your business requirements – make sure to consult with your accountant or bookkeeper before adding or editing any accounts.
NOTE:Some accounts created in Xero and QBO require different settings to map correctly. Please check Xero Integration - Basic and QuickBooks Integration - Basic for more information if you are using these accounting systems.
Already created by DEAR:
- Accounts Receivable
- Accounts Payable
- Sales Tax (GST, VAT...)
- Sales/Revenue.
Required accounts:
Account | Account Type | System Account | Accepts Payments |
Inventory Control | Current Asset | None | Doesn't accept payments |
Inventory Discrepancy | Expense | None | Doesn't accept payments |
Cost of Goods Sold | Direct Cost (DEAR standalone/Xero) Cost of Sales - Supplies and Materials (QBO) | None | Doesn't accept payments |
Default Revenue | Revenue | None | Doesn't accept payments |
Tax Liability | Liability | None | Doesn't accept payments |
Work in Progress | Current Asset | None | Doesn't accept payments |
Supplier Deposits | Current Asset | None | Accepts payments |
Customer Credits | Current Liability | None | Accepts payments |
In Transit | Current Asset | None | Doesn't accept payments |
Optional Accounts:
Inventory Accrual/Stock in Transit (requires Inventory Accrual to be enabled)
Account | Account Type | System Account | Accepts Payments |
Inventory Accrual (Goods Received, Not Invoiced) | Current Asset OR Current Liability | None | Doesn't accept payments |
Stock in Transit (Goods Invoiced, Not Received) | Current Asset | None | Doesn't accept payments |
Gift Card Liability (requires Gift Cards to be enabled)
Account | Account Type | System Account | Accepts Payments |
Gift Card Liability | Current Liability | None | Accepts payments |
See Accounts and Chart of Accounts for more information about creating accounts in DEAR.
Account Mapping
Make sure your accounts in DEAR and in your accounting system are correctly linked with Account Mapping.
NOTE: You can use DEAR without completing this account mapping. If you attempt to use functions that are linked to an unmapped account, DEAR will report an error and may be unable to complete the operation.
NOTE: If you have optional accounts such as Inventory Accrual Transactions and Gift Cards, these will not be visible unless they are enabled in General Settings.
To perform Account Mapping:
- Navigate to Settings → Reference Books → Financials → Account Mapping.
- Check all accounts are correctly linked together.
- Save any changes.
Product-level Customization
DEAR allows you to specify inventory control, revenue and COGS accounts at the product level. This allows revenue analysis to occur at the product level if your business needs require it. Create additional accounts either through Settings → Reference Books → Financials → Chart of Accounts in DEAR or through your accounting system and assign them on the details screen.
Tax Rules can also be specified at the product level. Go to Inventory → Products → [select product], and choose the General tab.
Supplier-level and Customer-level Customization
Further customization can be done at the Customer and Supplier level.
The Supplier screen allows you to change the default Accounts Payable account, Tax Rule, and Payment Term that will be applied when you process an invoice from the given supplier.
If you set the Supplier currency different to your base currency, DEAR will automatically apply a currency conversion rate effective at the time when the document is created. This field can be manually overridden to enter the actual rate of conversion.
The Customer screen allows you to change the Accounts Receivable account and default Sale/Revenue account. This will allow you to implement ‘customer-centric’ revenue analysis.
You are also able to change the Tax Rule and Payment Term that will be applied when creating Invoices for a given customer. If you set the Customer currency that is different from your base currency, DEAR will automatically apply a currency conversion rate effective at the time the document is created. This field can be manually overridden to enter the actual rate of conversion.
Purchase/Sale Invoice-level Customization
All defaults can be overwritten again at the document level at the time of creating a new purchase or sale invoice.
The Sale screen allows you to modify the Sale account and Tax Rule. You are also able to adjust the Tax Rule at the invoice line level if required. Additional costs can be allocated to a different sale account, and different tax treatment can be applied as well. When selling to other countries, DEAR will pre-fill the conversion rate field with the most recent rate. This can also be manually amended to reflect the actual rate.
The Purchase screen allows you to modify the Inventory Account, where the stock should be allocated. You are also able to adjust the Inventory Account at the invoice line level if required. Tax Rules can also be changed at the order and/or order line level.
Additional costs can be allocated to the same Inventory Account to form the landing cost of your stock; alternatively, it can be any other expense account if those expenses are classified differently by your business.
You can specify different Tax rules for additional costs as well. When selling to other countries, DEAR will pre-fill the conversion rate field with the most recent rate, which can be manually amended.
Chart of Account permisssions
DEAR offers fine-grained control over user permissions. Grant users full or read-only permission to the different features of the purchases module, and create roles with pre-defined permissions to assign to users.
Go to Settings → Users and Roles to change user permissions, see Managing Users and Roles and User permissions explained for more information.
Users will need full access for the Setting - Financial - Charts of Accounts & Mapping permission to make changes to the Chart of Accounts and Account Mapping.
Users will need the Inventory - Products & Families permission to customize revenue accounts for a product.
Users will need the Suppliers List & Editing and Customers List & Editing permission to customize revenue accounts for a supplier or customer.
Users will need Purchase - List & Tasks permission and Sale - List & Tasks permission to customize revenue accounts for a purchase or sale.