Simplified Financial Posting Option


For the most part, all financial entries are posted by default to the Accounting Software, however there is an option to only post financial entries to the Accounting Software for Sales Invoices, Customer Payments and Purchase Invoices


This option is ideal for organisations who simply wish to post Sales and Purchases directly to Sales and COGS respectively. All other financial transactions generated from Ostendo are 'not' posted to the Accounting Software when this option is selected.


When this option is in use, the following financial transactions are posted to the Accounting Software:


Sales Invoicing:

DR        DEBTORS

CR        SALES INCOME


Customer Payments (Initially Recorded)

DR        BANK (or UNDEPOSITED FUNDS)

CR        UNAPPLIED PAYMENTS


Customer Payments (Applied)

DR        UNAPPLIED PAYMENTS

CR        DEBTORS


Customer Deposits (Initially Recorded)

DR        BANK

CR        UNAPPLIED DEPOSITS


Customer Deposit (Applied)

DR        UNAPPLIED DEPOSITS

CR        DEBTORS


Bank Deposits

DR        BANK

CR        UNDEPOSITED FUNDS


Purchase Invoices

DR        PURCHASE RECEIPTS

CR        CREDITORS


All other financial transactions generated from Ostendo are marked as 'Transaction Valid' with a Financial Batch Number of '000'. This then prevents these transactions from being posted however they still remain in Ostendo for reporting purposes.


Activating Simplified Posting In Ostendo:

A User Defined Constant controls whether full Standard Ostendo posting or Simplified posting is triggered. If this Constant exists with a Constant Value of 'True', Simplified Posting will be used, otherwise in the absence of this Constant or if the Constant Value is False, then full Standard posting will occur.


Defining the Constant:

Go to File -> Customisation Configuration -> User Defined Constants


    • Specify a Constant Name of 'ONLY POST FINANCIAL INVOICES AND PAYMENTS' (case sensitive)
    • Specify a Constant Type of Yes/No
    • Tick the Constant Value to mark as 'True'
    • When mapping the Ostendo Cost Centres to the Accounting Software GL ensure the PURCHASE RECEIPTS Cost Centre is mapped to a COGS GL Account



IMPORTANT:


Extreme care must be taken if the above Constant is amended. Simply turning on or off this Constant will result in the change of behaviour of Financial Postings from that point on-wards. 


If a change is to be made, then a review and modification of the PURCHASE RECIEPTS mapped GL account setting should also be made at the same time.


The timing of such a change should be carefully considered. It is suggested you work closely with your Accountant and Ostendo Support Provider before making this significant configuration change.