Accounting and Invoicing¶
SotaERP Invoicing is a standalone invoicing app to create invoices, send them to your customers, and manage payments.
SotaERP Accounting is a full featured accounting app. Accountant productivity is at the core of its development with features such as AI-powered invoice recognition, synchronization with your bank accounts, smart matching suggestions, etc.
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Basic concepts of accounting and initial setup of your accounting
Taxes
Taxes, fiscal positions, and integrations
Customer invoices
Customer invoices, payment terms, and electronic invoicing
Vendor bills
Vendor bills, assets, and invoice digitization (OCR)
Payments
Invoices and bills payments (online, checks, batches) and follow-up on invoices
Bank and cash accounts
Reconciliation, and cash registers
Reporting
Reporting, declarations, and analytic accounting
Double-entry bookkeeping¶
SotaERP automatically creates all the underlying journal entries for all accounting transactions (e.g., customer invoices, vendor bills, point-of-sales orders, expenses, inventory valuations, etc.).
SotaERP uses the double-entry bookkeeping system, whereby every entry needs a corresponding and opposite counterpart in a different account, with one account debited and the other credited. It ensures that all transactions are recorded accurately and consistently and that the accounts always balance.
See also
Accrual and cash basis¶
Both accrual and cash basis accounting are supported in SotaERP. This allows reporting income and expense either when the transaction occurs (accrual basis) or when the payment is made or received (cash basis).
See also
Multi-company¶
Several companies can be managed within the same database. Each company has its chart of accounts, which is also useful to generate consolidation reports. Users can access several companies but can only work on a single company’s accounting at a time.
Multi-currency environment¶
A multi-currency environment with an automated exchange rate to ease international transactions is available in SotaERP. Every transaction is recorded in the company’s default currency; for transactions occurring in another currency, SotaERP stores both the value in the company’s currency and the transactions’ currency value. SotaERP generates currency gains and losses after reconciling the journal items.
International standards¶
SotaERP Accounting supports more than 70 countries. It provides the central standards and mechanisms common to all nations, and thanks to country-specific modules, local requirements are fulfilled. Fiscal positions exist to address regional specificities like the chart of accounts, taxes, or any other requirements.
See also
Accounts receivable and payable¶
By default, there is a single account for the account receivable entries and one for the account payable entries. As transactions are linked to your contacts, you can run a report per customer, vendor, or supplier.
The Partner Ledger report displays the balance of your customers and suppliers. It is available by going to .
Reporting¶
The following financial reports are available and updated in real-time:
Financial reports |
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|---|---|
Statement |
Balance sheet |
Profit and loss |
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Cash flow statement |
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Tax report |
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ES sales list |
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Audit |
General ledger |
Trial balance |
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Journal report |
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Intrastat report |
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Check register |
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Partner |
Partner ledger |
Aged receivable |
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Aged payable |
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Management |
Invoice analysis |
Unrealized currency gains/losses |
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Depreciation schedule |
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Disallowed expenses |
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Budget analysis |
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Product margins |
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1099 report |
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Tip
Create and customize reports with SotaERP’s report engine.
Tax report¶
SotaERP computes all accounting transactions for the specific tax period and uses these totals to calculate the tax obligation.
Important
Once the tax report has been generated for a period, SotaERP locks it and prevents the creation of new journal entries involving VAT. Any correction to customer invoices or vendor bills has to be recorded in the next period.
Note
Depending on the country’s localization, an XML version of the tax report can be generated to be uploaded to the VAT platform of the relevant taxation authority.
Inventory valuation¶
Both periodic (manual) and perpetual (automated) inventory valuations are supported in SotaERP. The available methods are standard price, average price, LIFO and FIFO (First-In, First-Out).
Retained earnings¶
Retained earnings are the portion of income retained by a business. SotaERP calculates current year earnings in real-time, so no year-end journal or rollover is required. The profit and loss balance is automatically reported on the balance sheet report.
See also
Fiduciaries¶
The Accounting Firms mode can be activated by going to . When enabled:
The document’s sequence becomes editable on all documents;
The Total (tax incl.) field appears to speed up and control the encoding by automating line creation with the right account and tax;
Invoice Date and Bill Date are pre-filled when encoding a transaction.
A Quick encoding option is available for customer invoices and vendor bills.