Overview

To start business in the system, we need to register your company. By default, you can create only one company in the system. To keep accounting by multiple businesses in a single infobase, go to Master data and settings > Enterprise (under Master data and sections) and select Multiple companies.

Creating Companies

Creating Legal Entities

To create a company (legal entity):

Go to Master data and settings and select Companies (if the Multiple companies checkbox is selected, click Company details).
Click Create > Legal entity (if the Multiple companies checkbox is selected, skip this step).
On the General information tab, select a Country of residence
Specify the Abbriviated, Full, and International name, and the Working title.
- Full name is an official company name. It is shown on the print forms of the company’s business documents.
- Abbreviated name is an abbreviation of the official company name.
- Working title is a company name displayed in the system. This company name is applied to business documents you create in the system.
- International name is used in international trade.
Specify a Prefix of no more than 2 letters to include in numbers of the company’s business documents. For instance, a prefix can be an abbreviated company name.
Specify TIN, PSRN, and Registration date.
Go to the Address and phones tab and specify the required contact details of the company. This data is shown in the print forms of business documents.
On the Accounting policy tab, select the Local accounting currency.
On the Print settings tab, you can set up a company’s logo and facsimile.
Click Save.

Creating Individual Entrepreneurs

To create an individual entrepreneur:

Go to Master data and settings and select Companies (if the Multiple companies checkbox is selected, click Company details).
Click Create > Individual entrepreneur (if the Multiple companies checkbox is selected, skip this step).
On the General information tab, specify the Person.
Select a Country of residence
Specify the Abbriviated, Full, and International name, and the Working title.
- Full name is an official name. It is shown on the print forms of the company’s business documents.
- Abbreviated name is an abbreviation of the official name.
- Working title is a name displayed in the system. This name is applied to business documents you create in the system.
- International name is used in international trade.
Specify a Prefix of no more than 2 letters to include in numbers of the company’s business documents. For instance, a prefix can be an abbreviated name.
Specify TIN, PSRN, and Registration date.
Go to the Address and phones tab and specify the required contact details of the company. This data is shown in the print forms of business documents.
On the Accounting policy tab, select the Local accounting currency.
On the Print settings tab, you can set up a company’s logo and facsimile.
Click Save.

Setting up Financial Accounting Policy

To set up the financial accounting policy for your company:

Open the Accounting policy tab and under Financial accounting policy, click Change.
Edit the validity Period if required.
Select the month of Fiscal year start.
Select the Inventory valuation method:
- Average per month. The average cost is assigned to each inventory item. The average cost is determined on the basis of the weighted average cost of the inventory item at the beginning of a period and the cost of similar items purchased or produced during the period. For instance, at the beginning of the accounting period, a company has 1 chair at 1000$ in stock. Then the company buys another chair at 1500$. At the end of the accounting period, the value of inventory is calculated as follows: (1000*1+1500*1)/2=1250$.
- FIFO. Stands for First In, First Out. This method assumes that the inventory items that were purchased or produced first are the items that are sold first. Then the items remaining in stock at the end of the accounting period are the items most recently purchased or produced. So, the cost of each inventory item is the value of this item in the most recent document that confirms the item receipt. For instance, at the beginning of the accounting period, a company buys 1 chair at 1000$. Next week, the company buys another chair at 1500$ and then sells 1 chair. At the end of the accounting period, the value of inventory is 1500$.
If you use the FIFO inventory valuation method, you can select the Itemize material and itemized expenses in inventory cost checkbox to view the details of the inventory cost before the initial material and itemized expenses including the details of the additional goods expenses up to expense items in the "Gross profit..." and "Inventory cost..." reports.
To discount long-term accounts payable to vendors, select the Accounting for discounted accounts payable to vendors checkbox and specify the following:
- Discounting period. The default period. The discounting period can be overwritten in the supplier contract. Discounting is applied only to an actual debt with a payment delay that exceeds the specified quantity of calendar days.
- Interest expense write-off item and Interest expense write-off dimension. Specify the expense item and dimension to register monthly write-off of interest expenses under contracts. To correctly register transactions on accounting of interest expenses in the Financial result report, use нthe expense item with Interest receivable (payable) kind of expense for other activity.
- Click Rates are not specified and specify annual discounting rates. After the discounting rate for at least one currency is set up, the name of the hyperlink changes to Discounting rates.
Click Save and close.

Setting up VAT Accounting Settings

To specify that you company uses VAT:

Open the Accounting policy tab and under VAT accounting settings, click Change.
Select the VAT payer checkbox.
To accrue VAT by advance payments, select the Accrue VAT by advance payments checkbox and select that you are going to create advance VAT invoices for payments if they are:
- not set-off during the day
- not set-off during five days
- not set-off during the month
- not set-off during the quarter
If you want to select an activity the purchase is done for in purchase documents, select the Separate VAT accounting at purchase checkbox. When you purchase something for an activity that is not subject to VAT, the tax will be included in the cost of goods, works, or services.
If the Separate VAT accounting at purchase checkbox is selected, specify how you are going to allocate VAT for tax-free operations:
1. Select Month or Quarter in the Frequency field.
2. Select the allocation Base: Last year revenue, Current year revenue, or Current month (quarter) revenue.
To see charged VAT in VAT-free purchase transactions, select the Generate VAT charged when including in cost checkbox. In this case, when you create a Vendor invoice with the VAT free activity type, VAT is included in the cost of products bought, but you will still see this VAT in reports (although will not be able to submit it to the government as it is already allocated to costs). If the checkbox is cleared, the system will not store information on VAT charged for VAT-free purchase transactions, and you will not see this info in VAT reports.
Click Save and close.

Creating Business Calendars and Work Schedules

Business Calendars

A business calendar defines working days, weekend days, and holidays within a year. It is a source of data for filling in work schedules of companies. You need to create a business calendar for each new year.

To create a business calendar:

Go to Master data and settings > Enterprise > Business calendars.
Click Create.
Specify the Description and Code.
Select the Year.
If it is a regional calendar, select the This is a regional calendar checkbox and select the official calendar.
- Federal calendar applies to all companies across the country. Includes working days, weekend days, and federal holidays.
- Regional calendar applies to all companies in a country’s region. Includes working days, weekend days, federal and regional holidays.
Specify holiday or working days. For that, do any of the following:
- To fill in dates by default, click Set default holidays at the top.
- To fill in dates manually:
  - In a business calendar, do one of the following:
    - Right-click a date and select Change day.
    - Select a date and, at the top of the window, click Change day.
- From the drop-down list, select a date type. Any of the following:
  - Working
  - Saturday
  - Sunday
  - Preholiday
  - Holiday
  - Non-working
Ones you are ready, click Save and close.

Federal or local government can shift a holiday to another date. For instance, a holiday that falls on Sunday can be shifted to Monday. In this case, shift the date in your business calendar. To do this:

In a business calendar, do one of the following:
- Right-click a date and select Change day.
- Select a date and, at the top of the window, click Change day.
From the drop-down list, select a date type.

Work Schedules

A work schedule defines working days and hours of a company and its employees.

To create a working schedule:

Go to Master data and settings and click Work schedules under Master data.
Click Create.
Enter the Description and Default business calendar.
Specify the Schedule filling period.
Select the filling method:
1. By weeks. Working days and hours are filled in for each week within the Schedule filling period.
2. By cycles with lengths. Working days and hours are filled in for each work cycle within Schedule filling period. For this option, specify the number of days in a cycle and the work cycle start date. For instance, a company operates 3 consecutive days followed by 1 day-off. This work pattern starts on January 1, 2020, and repeats up to the end of the year. Then the number of days in a work cycle is 4. The work cycle start date is 01.01.2020. Schedule filling period is from 01.01.2020 to 31.12.2020.
In the Template window, select the required days to add them to the schedule and fill in working hours for each day.
If working hours of dates that precede dates marked as holidays in the business calendar differ from your company’s regular working hours, click the link next to Preholiday schedule and fill in these hours. For instance, preholiday working hours can be shorter than the regular ones.
If you want working days to exclude dates marked as holidays (Saturday, Sunday, Holiday, and Non-working) in the business calendar, select the Skip holidays checkbox.
Click Filling result and review the filled in work schedule.
If the work schedule is correct, click Save and close.

In the system settings, you have to select the main enterprise schedule. It determines a number of workdays when managing inventory, calculating a validity period of authorization letters if other calendar is not specified.

To specify the main enterprise schedule, go to Master data and settings > Enterprise and select the Enterprise schedule.

Creating Company Structure

Once the company is created, it’s a good idea to specify its business units. A business unit where you can keep inventory. For example, office supplies in the accounting department. You can specify a department in business documents such as a supplier invoice or inventory transfer.

To activate business units, go to Master data and settings > Enterprise and select the Business units checkbox.

To create a business unit:

Navigate to Master data and settings > Business units.
Click Create.
Enter the Description.
Specify the Superior business unit and a Business unit manager.
Click Save and close.

Step 4. Creating Companies

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