How to Create Statements [Trainers, Farms and other service providers]
The Create Statement process allows you to review all finance transactions for all items for a specified period, generate invoices and send Statements (with those accompanying invoices) to Owners.
This process will also synchronise all invoices to Xero (or to MYOB if you as using MYOB), allowing the creation of relevant financial reports and account.
The Create Statement process is essentially a 'month-end wizard'. It helps you to review all pending transactions or anomalies in the owner charges and rectify them before invoices are generated and sent out to Owners.
There are multiple steps in this 'month-end wizard'. At each step you can update items to rectify any issues. The line items disappears once the issue is resolved so you know that only those listed in each step have a remaining issue and will therefore not be charged out to Owners. If you don’t need to update this, then you can move to the next step.
Review transactions prior to the Create Statement Process
To improve the efficiency of the Create Statement process, we recommend reviewing all Finance Transactions (see How to Manage Transactions in Finance) to identify any errors or missing information, including those transactions without accounts receivable codes assigned or transactions that don’t have a charge assigned.
Commence the Create Statement process
When you are ready to start the process, click Create Statement at the top of the Finance Transactions page and follow the instructions through the steps described below.
Note that throughout the Create Statement, you can click on the Export CSV button to export the data from each screen and review separately or send onto other staff for checking.
Select the Statement Range. All costs entered in this period will be included.
We recommend always synchronising with Xero fist to ensure all data is up-to-date between Prism and Xero and to avoid any conflict occur after create statements.
Click on Connect to Xero button.
Step 1 - Review Incomplete Tasks
Prism won’t charge any Tasks or Expenses that are incomplete.
All Tasks or Expenses that are incomplete will be listed in this first step and are split based on the Task Category – Procedure, Transport, General (Farrier, Dentist).
For Tasks that you know have been completed, click the tick button in the Action column to mark the task as completed.
Once ticked, this will mark the task as complete and if applicable, the system will then assign the charge.
Note that when completing the task, you can choose to mark it complete at the originally requested date or at a different date subject to your preferences.
If you don’t mark a task as complete, the system will ignore this task in the billing and invoicing process and no charge to Owners will occur.
If you mark a task as complete, but it doesn’t have a charge associated with it, it will be identified on Step 5 – Check Fields. It is in this step where you can assign a charge, if applicable.
You can click to edit the task or delete the unnecessary task.
If you have no tasks shown there, it means all tasks were completed so you can move to the next step.
You can order or filter the list by clicking on the column headers.
If you have updated the tasks (Edited, Deleted or Completed), click on Refresh button at the bottom can get the list up-to-date.
You can export the tasks list to CSV and review offline by click on Export CSV button.
Once you finish reviewing the incomplete tasks list, you can click Next button.
Step 2 - Review No Daily Charges Assigned
Where horses are missing a Location and/or Status, or missing a daily charge rate, they will be listed in Step 2. This allows you to review and resolve any issues, ensuring you capture all Day Rate charges over the course of the Statement period.
There are two tabs in the screen: “No Location/Status” and “No Daily Charges”.
NO LOCATION / STATUS
The first tab lists out all horses which are missing a Location, Status or both. The horses will be listed here and allow you to update them.
This also includes horses that are missing a date range within the period, ensuring you account for every day.
To fix horses that don’t have any Location or Status, click on the Edit icon in the Action column and update the Horses Location and Status for the period that requires updating.
When editing the day rate, if the location already has a day rate rule, you need to confirm the change to take the rate then that cost will be applied.
If you edit the location/ status of the horse but no rate has been defined to that set, a confirmation dialog will show as below. You can add a rate for that set by clicking on Add Day Rate button right on the screen.
If not, then the horse will appear in Step 3 where a day rate cost can be applied to the horse. Once finished, click next to proceed to the next step.
NO DAILY CHARGES
If horses have an assigned Location-Status, but no Day Rate listed for that Location-Status history, then they will be listed in Step 3.
From here, you can review the list line by line and apply the Day Rate as required. Click on the Edit icon to open New Day Rate screen and you can create a rule to charge the rate (see How to configure Daily Rates in Trainer and Breeding portals).
To see the change, you will need to Refresh the page and reload the page.
Where you create a new Cost against a Location and Status, that will then be added to the Rules section to ensure it is captured in the future.
If you choose not to add a cost, then this Horse will not be charged any day rate for the period highlighted.
Once you are finished, click next to move onto the Next step.
Step 3 - Review Horse Ownership
A Horse Ownership issue arises where a change in a horse's ownershipresults in total amount not being equal to 100% during a duration related to the statement period.
This is very rare due to Prism’s requirement for the Ownership to equal 100%, but can happen when importing Owners from third party systems or where a horse is yet to have any Owners assigned.
Where you have no Owners or part Ownership, you can edit the split by clicking the edit button and follow the same process as the original Edit Horse Ownership feature.
Step 4 - Review Missing Fields
To ensure all costs can be properly attributed to the relevant account and costs in Xero, any items that don’t have a Supplier (or assigned to Internal), Account Code, Tax Rate or a $ Amount against them will be listed here.
If you wish to capture the amounts and recharge these items to the Owners, you need to review the “Unassigned” items one by one and add the missing information.
Any items not updated will not be recharged out.
To update, click the Edit icon in each line item then fill in the form missing fields.
You are able to delete individual transactions if you wish right on the Transactions screen by click on the Delete icon. In case of Daily Charges, you need to update horse location history instead.
Once you finish your review, click Next to move to the next step.
For Payables, you need to provide a Supplier Name, Account (Pay), Tax Rate and an Amount. Where the Payable is an Internal expense and you are accounting for the costs of the item as well as the recharged amount, you need to ensure the Supplier section is marked Internal.
For Receivables that don’t have a cost amount (ie., day rates, holiday levies), you need to provide an Account (Rec), Tax Rate and Amount for the item.
If you have updated the records, click on Refresh button at the bottom can get the list up-to-date.
You can export the tasks list to CSV and review offline by click on Export CSV button.
Step 5 - Review Expenses by Horse
Step 5 provides you with the opportunity to review each horse and confirm all expenses for the period.
In this step you need to review each cost and validate them before they become can be Invoiced. Only approved/validated expenses will be added to Invoices and Xero.
Note: It is recommended all non-horse and general operating expenses are captured in Xero or your existing accounting system, however they can be recorded in Prism also.
REVIEW THE LIST BY INDIVIDUAL HORSE
You can type in the horse name in the box then the list will be filtered to show all expenses related to that horse only. Alternatively just go through each horse, starting with A and moving through to Z.
Click on < and > to move to the next horse.
Review the list of expenses assigned during the period for each horse, ticking on the first column to approve/ validate the expenses
Ignore to the line item if you don’t want it to be charged out.
Once you get done with the list of expenses, click Next icon to move to the next horse (sorted in alphabetical order by default) and repeat step 1 and 2 until the expenses of all horses are reviewed.
Note: Those not approved will not be recharged or added to Xero.
While reviewing expenses by individual horse, you are able to add note for each one. This will be included in Invoice of that horse.
The Note function displays if you are reviewing individual horse only.
QUICK REVIEW FOR MULTIPLE HORSES
You can also review multiple or all horses at once by adjusting the Horse Field.
You can click on the Filter icon in Horse column and select the horses’ name you wish to review. To review all horses at once, select All Horses or select the individual horses you wish to review.
Repeat the Review process as per the instructions above before clicking on Next to go to the next Step.
Note: Those not approved will not be recharged or added to Xero.
APPROVE ALL
To aid in the efficiency of this process, you can also click Approve All function that will approve all costs on the screen.
You can also skip all of the costs or simply deselect individual line items if you don’t want to charge these individual line items out.
If you skip all or deselect all, it means that no items will be charged out.
UPDATE THE EXPENSE
You can split, edit or delete an expense by clicking on the icon in Action column. To split, delete or edit an expense, the steps are the same as when you work with a transaction in the Transaction list.
This will be the last chance you have to update and edit the transaction before they are committed for invoicing.
EXPORT TO CSV FOR REVIEW
If you wish to export the Horse expenses into a CSV, to go through these manually, then you can also do this, however you need to ensure all expenses are confirmed online.
The file contains horse expenses only, expenses charged directly to owners or general operating expenses are not included.
Once you finish review the list, click Next button to go.
If you skip some transactions, a message will show to get your confirmation. If you are sure you want to go, those transactions will not be invoiced.
Step 6 - Review Owner Summary and Reversals
This step allows you to make any final adjustments and reversals before the Statements are collated and sent out.
If you want to reverse the charges to an owner, you can take this step.
Outlined in this screen will be the total amount owed by each Owner for the period.
If you wish to reverse the charges, click the Reversal option next to the Owner and select the Account you wish to reverse the charges to.
There are two options here:
- Reverse total amount: all money owed by owner will be reversed.
- Reverse by horse(s): the cost occured in selected horse which is owed by the owner will be reversed.
If a reversal has been applied, the Owners Statement will contain an adjustment to show the reverse and the total amount of zero.
Step 7 - Review and Apply Discounts
The next step is the discounts offered to Owners.
This screen will show all Owners and their present discount amounts, including those without pre-assigned discounts.
You can add or edit the discount amount and select the “Include” option. If Include is selected the discount amount will apply – if it is not selected, no discount will apply and the full amount will be charged.
The list will show all the owners that are possible to have discount in the period. The line items are listed by owners to show the discounts they are able to have in each horses:
- Overall discount: this is the discount specified for each owner. It will be able to applied for all the costs occurs on that owner’s horses.
- Discount for Daily Rate: this discount is applied to the training fee in one or some horses for certain horses
You are also able to add a one off discount for owners who don’t have discount pre-defined and will be applied as an overall discount on the total amount.
Step 8 - Review and Apply Credit Notes
This step allows you to review the credit notes over the selected period, you may include them in the statements or not.
Make sure you tick the Include column to have the credit in the statements of this period.
You are able to edit or delete them as needed.
You can click Approve All to select all Credits on the screen, or approve some credits only. Or you can skip all of the credits so none are applied to owners.
Once you finish this step, click Next.
Step 9 - Review and Apply Interest Charges
This step will apply the interest on the overdue amount. Make sure you define Interest settings in Organisation Configuration as guided then the interest amounts will be auto-calculated against each owner.
For instance, this is the settings in Organisation Configuration.
in the example above, you will charge 10% of the overdue amount that is more than 30 days overdue. This interest charge will be coded to the selected Accounts Receivable code, with the selected tax status.
Note that the interest settings in specific Owner Account is higher priority and it will override the settings in Organisation Configuration.
You can tick on checkboxes to add the interest charge to this period statement for the owner, or untick to exclude.
You can edit the interest rate, interest account, tax rate and/or tax status by clicking on the Edit icon. The actual Interest Amount charged is calculated based on the rate.
Once done, you can click Next.
Step 10 - Review Statements
Once you have finished all the steps and clicked Next in step 9, the system will roll over to a new page and show you the list of statement being created. You are able to review each individual statement for all owners.
You can:
- click on the View (eye) icon to preview each statement;
- order the list by Owner Account by click on the header or to filter by the name you want by click on;
- export the list to csv file and review it offline by click on Export CSV button;
- download all statements in PDF format to your local by simply click on Export PDF at the bottom.
If all statements are ok, click Next button to generate statements.
Depending on how many statements are being processed, it may take some time. Once done, it will automatically move to the next step.
Step 11 - Email Statements
Once all statements have been generated, you will be able to see the list of Owner Statements created.
INPUT NOTE FOR STATEMENT
You are able to add note for each owner statement. This will be sent to owner along with the statement.
In each statement line, type the note you intend to send to owner in Note column.
ATTACH FILE TO STATEMENT
If you want to attach file to send through with a specific statement, click on the pin icon and follow the steps.
Please note that you have another option to add attachment for all statements by uploading the file in Organisation Config - this is often used for PDF Terms & Conditions.
REVOKE CREATING STATEMENT
If you want to cancel those statements, click on red button Undo at top right and confirm in the dialog box, all statements created will be voided.
EMAIL STATEMENT
Depend on the settings you defined in your Organisation Config, Email icon will display (or not) in this screen.
You can select all or multiple statements by the checkbox on the left then click on Email button or click on the Email icon next to each statement to send individually.
Once you click the icon, statements will be sent to email addresses of the owners in Owner / Account tab.
EXPORT ALL TO CSV
You can get the list in CSV format by click on Export All to CSV to review later.
Click Next to continue.
Step 12 - Sync Statements
The final step is optional and available to those who are using Xero to manage their Accounting and Finance functions, including Reports, Ledgers and Balance Sheet.
After reviewing statements in Step 11, click Next. You have two options to choose:
1. Finish without Synching to Xero
2. Finish and Sync to Xero.
Clicking Finish will close the wizard and your task is completed. After that, anytime you sync with Xero, created statements will be updated automatically in Xero. This will include bills, invoices, any updates with suppliers and owner financial accounts or your chart of accounts and tax rate settings if any.
You can sync the data to other Accounting programs (ie., MYOB, Quickbooks), however Xero is the preferred solution for simple, end to end financial management of your Stable - which will save you a lot of time.
To start the process, click the blue Finish and Sync to Xero button.
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