How to Create Statements in Finance

How to Create Statements in Finance

The Create Statement process is where you have expenses all items for the period

and are looking to check and generate invoices to be sent to Owners.


This process will also integrate and direct all expenses from the period into the right sections of Xero, allowing the creation of relevant financial reports and account.


Similar to a month-end wizard, this process will help you to review all pending transactions or anomalies in the expenses and rectify them before invoices are generated and sent out to Owners.


Where you update each item in the process, the line item will disappear so you know that only those listed in each step have issue and are not being recharged out to Owners. If you don’t need to update this, then you can move to the next step.


To improve the efficiency of the Create Statement process, it is recommended to use the current transaction list to filter and check expenses over the course of the month, including those without accounts or that don’t have costs assigned to them.


When you are ready to start the process, click Create Statement at the top of the Finance 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.






8.1 GET STARTED - SELECT STATEMENT DATE


The first step in the process is select the Statement Range. All costs entered in this period will be included.








8.2 STEP 1 - INCOMPLETE TASKS


Prism won’t recharge any Tasks or Expenses that are not completed.


All Tasks or Expenses that are not yet completed 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 cost. 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 it won’t be recharged to Owners.


If you mark a task as complete, but it doesn’t have a cost associated with it, it will fall into Step 5 – Check Fields where you can assign a cost.


If you have no tasks shown there, it means all tasks were completed so you can move to the next step.



8.3 STEP 2 – NO LOCATION OR STATUS ASSIGNED


Where horses are missing a Location, Status or both, they will be listed here and allow you to update them, ensuring that you capture all Day Rate charges over the course of the Statement period.


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, then that cost will be applied.


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.


  









8.4 STEP 3 – 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. 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.





8.5 STEP 4 – LACK OF OWNERSHIP


A Lack of Ownership step arises where a change to adjustment in ownership share of a horse results in total amount not being equal to 100%.


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.







8.6 STEP 5: CHECK 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.












Note:

  • 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.



8.7 STEP 6: EXPENSES BY HORSE


Step 6 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.





REVIEW THE LIST BY INDIVIDUAL HORSE


Reviewing the List by Horse will take you through each horse individually.


  1. 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

  2. Review the list of expenses assigned during the period for each horse, ticking on the first column to approve/ validate the expenses

  3. Ignore to the line item if you don’t want it to be charged out

  4. 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.







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 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.



8.8 STEP 7: NON-HORSE EXPENSE


This screen requires is similar to the Horse Expense form but lists out all Expenses that are not related to a horse or owner.


You need to follow the same process as the Horse Expenses, ensuring any non-horse expenses are approved / validated so they can added to Xero and captured in your business accounts. You are also able to edit and delete the costs as required.


Those not approved won’t be added to Xero. Once complete, click Next to move onto the next step.  


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.





8.9 STEP 8: 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 money charged 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.


This step is optional and will only apply to a few select Owners or Trainers.


If a reversal has been applied, the Owners Statement will contain an adjustment to show the reverse and the total amount of zero.




8.10 STEP 9: APPLY DISCOUNT


The final step before Statement creation 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 one off discount for owners who don’t have discount pre-defined and will be applied as an overall discount on the total amount.







8.11 STEP 10: CREATING OWNER STATEMENTS


Once you finish all the steps and click Next in step 9, the system will roll over to a new page and start the invoicing and data syncing process, showing progress in the % load bar.




Subject to how much data is being processed, it may take some time. Once done, it will automatically move to the next step.


8.12 STEP 11: REVIEW OWNER STATEMENTS


Once all updates have been made and data transferred, you will be able to see the list of Owner Statements created.




You are able to add note for the statement. This will be sent to owner along with the statement.


You can then choose to Send ALL or select individual Owners and send the statement via email to the owners one by one.



8.13 STEP 12: CREATE STATEMENT COMPLETE


The final step is option and available to those who are using Xero to manage their Accounting and Finance functions, including Reports, Ledgers and Balance Sheet.


After review statements by Step 11 then click Next, you have done with Month End Process. You have two options to choose: Finish without Synching to Xero or Finish and Sync to Xero.




Finish will close the wizard and your task is completed. After that, anytime you sync with Xero, created statements will be updated to Xero to the proper components.


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.


To start the process, click the blue Finish and Sync to Xero button.






Follow instructions to sync with Xero as we have in the previous sections until the Wizard closes and message shows that the process finished.


You have the following items transferred into Xero ready for reporting:

  • All Owners Invoices

  • Accounts Receivable

  • Accounts Payable

  • Any non Horse Expenses provided

  • All Supplier Expenses (Bills)

  • Any updates to Tax Rate and Chart of Accounts


From there you can add all additional non-horses/recharged expenses, payroll costs and other items to then run all relevant reports including Profit and Loss, Balance Sheet and Ledger Accounts.


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