Create Management Accounts

Management Accounts on Power-Gx allow you create headings and subheadings, and calculations can be applied to produce the figures such as nett assets, total sales, gross profit and nett margin. It is a good idea to outline your Chart of Accounts on paper first and work from this to create your Management Accounts on the system. This topic describes setting Management Accounts up from scratch. A separate topic, Update Management Accounts, explains how to make amendments to existing Management Accounts.

There are several steps involved in creating Management Accounts on Power-Gx. Firstly you create titles, then headings and sub-headings. You then assign your nominal account codes to the correct headings and sub-heading. Calculations can then be applied to provide the figures required. You should verify your Management Accounts to ensure you have created them correctly and then you are able to print them.

3. Firstly you need to create titles within the Management Accounts. Typically you will create a Balance Sheet and Profit & Loss. Click the

icon in the toolbar. In the yellow Title box on the top right side of the screen, overtype the word New with the first title you require e.g. Balance Sheet. When you enter the title, it will appear in the white column on the left of the screen.

4. Click the

icon again to add the next title, e.g. Profit & Loss. When you enter it, it will appear beneath the first title on the left of the screen. You can now create headings e.g. Assets, Liabilities, Sales, Cost of Sales, Overheads etc.

5. Highlight the title you wish to create headings under, e.g. Balance Sheet. Right-click and select Insert Level from the context menu, or click the

icon in the toolbar.

6. In the yellow Title box on the top right side of the screen, overtype the word New with the heading you require e.g. Current Assets. When you enter, it will appear in the white column on the left of the screen as an indented heading.

7. Use the

icon to add other headings after this one, or the

icon to add headings above it. Alternatively you can right-click the existing heading and select these options via the Insert Line option on the context menu.

8. Use the yellow Title box to name each heading. These will appear as an indented list under the title shown on the left side of the screen. If further grouping is required within each heading, add sub-headings.

9. Highlight the heading you wish to create sub-headings under, e.g. Current Assets. Right-click and select Insert Level from the context menu, or click the

icon in the toolbar.

10. In the yellow Title box on the top right side of the screen, overtype the word New with the sub- heading you require e.g. Debtors, Stock, Bank etc. When you enter, it will appear in the white column on the left of the screen as an indented sub-heading of the heading.

11. Use the

icon to add other sub-headings after this one, or the

icon to add sub-headings above it. Alternatively you can right-click the existing sub-heading and select these options via the Insert Line option on the context menu.

12. Use the yellow Title box to name each sub-heading. These will appear as an indented list under the heading. Click here to view an example of the Management Accounts screen at the stage you are at so far. The next step is to assign your nominal account codes to the correct headings and sub-headings in your Management Accounts.

14. Click the Detail radio button from the Type of Line options. This will display a list of all the nominal codes on your system.

15. Find the nominals that are to be included under the current heading or subheading you have selected using the scroll bar to move down the list.

16. Click the nominal code and then click the Add button. This will move it from the list of unselected nominal codes at the bottom of the screen to the box above. Repeat for all nominal codes required under this heading/sub-heading. You can hold down the Control key or Shift key to select more than one nominal code at a time before clicking the Add button.

18. Select the next heading or sub-heading and repeat this process to assign the required nominal accounts. As the nominal accounts are selected, they will be removed from the list at the bottom. Note: every nominal code must be represented in Management Accounts for the figures to be accurate. Be careful to include them under the correct headings. The next step is to add calculations.

19. Create a heading or sub-heading for your calculation line, e.g. Total Fixed Assets, Net Assets, Gross Profit, Net % Margin etc.

20. Click the Total radio button from the Type of Line options. This will display a list of all the headings and sub-headings on your system, in the same order as they appear in your Management Accounts .

21. To select a line to appear in the calculations, double-click it from the list in the centre of the screen. This will enter it on the right side of the screen.

22. Double-click the operator to be used in this calculation i.e. +, -, *, /. This also appears on the right.

23. Double-click the next line to be included in the calculation, from the list in the centre of the screen.

24. Continue to add lines and operators until the calculation you require against this heading/sub-heading is displayed in the white box on the right side of the screen.

25. When the calculation is complete, click the Ok button. Click here to view an example of the Management Accounts screen at the stage you are now at. It displays a calculation for Total Fixed Assets. Click here for more examples of important calculations that you will probably include in your management accounts. When you have added all the calculations you require, you should verify the report.

26. Click the Verify button. The system will automatically check your Management Accounts to make sure you have set them up accurately. If you have omitted any, this error message will appear.

If you have missed any headings or sub-headings from calculations, an error message like this will appear.

27. If you received an error message, you will need to amend your report to correct it. Follow the above instructions to assign nominal account codes to the correct headings and sub-heading, and amend calculations.

28. If it has successfully passed the verification process, you can print the report and incorporate Management Accounts as part of your period end routine.