Components is an Object-Oriented Approach to accounting. It’s like working with an accounting construction set. What’s great about Components is that it can be more fully customized for your use. Its use of the graphical interface makes it easier to use, and it has the ability to produce presentation quality financial statements and reports.
The key to this Object-Oriented approach is in the tools you are given to use. These tools include an ability to define your accounting structure in many ways, graphical screens which enhance your use of the package and the reporting toolbox to fully design customized reports.
The tools of Object-Oriented accounting are found in each Components package. As you learn the tools in one module, you will see the same features in the others.
Components General Ledger
• Open the G/L
By first examining the General Ledger, the simplest of the modules, we can focus upon the tools common to the entire Components series. As we walk through this package, remember that these features are found in the A/R, A/P or JC/TB modules as well.
• Choose Business Setup
Beginning with the Business Setup window, you will see how Components uses the Mac interface to make accounting easier. First notice the Account Number pop-up menu. This menu lets you decide how you wish to set up your account number structure. If your structure changes later, you can come back to this window and add digits easily.
This approach is found through out the Components series. If this business did not already have data entered, you would see a pop-up menu here to determine your accounting periods (options include yearly, quarterly, monthly or 28 day).
• Close Business Setup and Choose Setup Accounts from the Accounts menu
This is the window where you enter your Chart of Accounts. The number you use depends upon the structure chosen in the Business Setup. You enter the number, the name and use this pop-up menu to choose the account type.
As you press Enter, the new account goes in the list below. Again, let’s look at the use of the graphical interface. This window has a zoom box, allowing you to take advantage of large screen monitors.
• Click upon the Zoom Box, two times.
Notice also that you can view your accounts in number order, or in name order.
• Choose by Name Order from the View pop-up menu.
If you wish to edit some of this information, you can double-click upon the account in the list. The upper part of the window can be used for editing.
Each account can maintain budget information as well.
• Choose by Account Budget from the View menu.
This window will show the period amounts for each account. These include Last Year, This Year and Budget. You can use the bottom scroll bar to look at other accounts.
• Close the Chart of Accounts window and Choose Account Ledger
Each account that you set up has its own ledger card. You can access different ledger cards in many ways. You can type in the number or name (including partial info) and press Enter. You can use the bottom scroll bar to view other accounts. Or you can use the Account List lookup window.
• Choose Account List from the Accounts menu and double-click the Cash account to select it.
As you look at the Cash account ledger card, notice that the upper portion displays various totals. These include period and year to date balances. In the lower section of the ledger is listed each transaction for this account. Each journal entry gets listed on this card.
One of the features of the Components series is the ability to set up your own entry journals. In the case of the G/L, you can create a manual (debit/credit) or automatic offset (like a one-write) journal.
• Choose Create Journal from the Journals menu
This is the window where you can create new journals. The manual journal is like most any double entry journal. Set up is also simple.
• Click upon the Journal Type pop-up menu and choose Manual.
When you create a manual journal, it looks like this:
• Choose the General Journal
Entry is straight-forward. Account number credit, account number debit. Each window represents one entry.
• From the Journal Setup window, choose Automatic from the Journal Type pop-up
The automatic journal set up offers more options. These include defining the offset account, and defining extra fields of information (Memo1 & Memo 2).
• Choose the Cash Disbursements Journal
This is an example of what an automatic journal can look like. Filling it out is much like using a one-write package.
Once a journal entry is saved, the transactions are immediately recorded upon the affected account ledger cards.
• Choose the Cash Account Ledger card
Notice the “P” column on the ledger card. If there is no check mark, it means that the entry has not yet been posted. Unposted entries can be reviewed and edited.
• Double-click an account transaction line that has not yet been posted.
The original journal entry appears on the screen.
As mentioned earlier, Components offers much flexibility in the structure of your accounting system. This includes how you do your posting and closing of periods.
• Choose Post Journals
When you wish to post journal entries, you can selectively choose which journals and for which dates. For example, this means you can post a single journal, for a single week.
• Close the Post Journals window and choose Close Period.
Like posting, periods can be closed in a flexible way. Periods need only be closed when you are ready. There is no problem moving into another period or year with your entries before a prior period has been closed.
We have now looked at how the Components General Ledger allows you to set up and record your accounting. Next, we will look at the ways you can generate reports.
• Click upon the View menu
Components comes set up with predefined reports and templates. It is easy to use these reports as is. If you wish to have more customized information printed out, you can use Components integrated forms package.
Custom reports can be designed from scratch or be based upon modified templates. Either way, you can use the reporting toolbox to get just the report you desire.
• Choose New View
We will use an untitled document to look at the tools available for customizing your reports. The tool box includes common Macintosh drawing tools, along with pop-up menus for quick selections for Fill, Line thickness and Fonts.
• Choose the Fence tool, and draw a rectangular object on the view
By drawing this Fence, we are able to place the fields we wish onto the report. Once the fence is drawn, a dialog will appear allowing you choose the fields. The fields are organized by Source. The pop-up Source menu will list the different fields available from each source.
• Choose the Account Ledger source from the pop-up menu
From this list of fields, you can select which information fields you wish in your report.
• Choose (select) only Account Number, Account Name and Balance, and then click the OK button.
The fence will contain the three fields. Position each field horizontally (you may want to extend the length of the Name field).
As you design a report in Components, you can move between the edit and preview modes. This allows you immediate feedback on your design.
• Choose Preview from the Design menu
The list of accounts and balances quickly fills the screen.
• Choose Edit for further design work
There are many design options available when you create a report. For example, you may wish to under line each account, and then have a total at the bottom of the list.
• Draw a line under the fields (stay inside the fence)
• Next, use the calculation tool to add a total (formula = Account Balance (Sum)) under the fence. (Draw the calculation field, then use the cursor to click on the Account Balance field).
• Choose Preview to see the changes
Other options include selecting only certain accounts, and adding labels. You can select certain accounts by double-clicking upon the Fence.
• Double-click the dotted fence, and use the Fence Info dialog to select only the Income accounts (use the Selections pop-up menu to do this), and then click OK.
• Next, use the Text tool to type in the Label “Income” above this fence.
Now, preview the report to see a list of all income accounts.
To set more attributes, every object in a view can be double-clicked. By double-clicking an object, the options available are displayed.
For example, if you double-click the calculation field, you are presented with a variety of options for Font, Size, Style, Number Format, etc. Other objects have other options.
More complex reports have more objects. Let’s look at the Detailed Balance Sheet view to see a more complete report.
• Choose Detailed Balance Sheet from the View menu.
By using the tools available, you can create an endless number of custom reports.
Now that you have seen the power of Object-Oriented accounting, we can look at other modules. The tools you have seen in the General Ledger are the same tools available in each package.
Components Accounts Receivable
For businesses that are merchandise oriented, Components Accounts Receivable is designed to invoice in a flexible way and track detailed information. These businesses include distributors, manufacturers, mail-order and some service companies.
The key features of the A/R include the ability to design your own invoice, add unlimited comments to item descriptions, track territories & sales reps and maintain a certain amount of inventory control within the A/R module.
• Open the A/R module
Components A/R uses all the graphical features found in the G/L. A new window allows you to enter settings which are used throughout the package.
• Choose Business Preferences
In this window, you can such settings as the number of digits you wish in your item pricing.
• Choose View by Invoicing/Statements
In this part of Business Preferences, you can enter such items as beginning invoice number, defaults for F.O.B. and Ship Via, plus Aging information.
• Close the Business Preferences window, and look at the items in the Accounts menu.
In order to use the A/R, you must set up a variety of items that pertain to your business. The first items are the definitions for your Finance Charges, Tax Jurisdictions and Terms. Each of these has its own set up window.
• Choose Terms from the Accounts menu
This is an example of a set up window. Here we can define the codes and definitions for the terms we may extend to various customers. There are similar set up windows for Finance Charges and Tax Codes.
Customers, Items, Reps and Territories each have a set up window, a ledger window and a lookup window.
• Choose Territories Set Up
If your business wishes to track sales by territories, you can set these up here. Notice the historical information in the lower section of the window.
• Choose Territories Ledger
This window will list each invoice recorded for this particular ledger.
• Choose Sales Reps Set Up
The sales rep set up allows you to define how you wish to track commissions. They can be based upon Sales or Gross Profit. The commissions can become payable upon Sales, Receipts or when paid invoices are Cleared from the system.
The amount of commission can be a fixed percentage regardless of item, or entered as a level depending upon the item.
• Choose Sales Reps Ledger
This window will display any invoices recorded for this sales rep.
• Choose Items Set Up
In this window you can set up the item information. If you wish, you can enter a quantity in stock and unit cost. The quantity will update during invoicing, and the cost can be used to calculate gross profit. You also can enter a matrix of pricing. This allows you to set up a structure for quantity discounts, or variable prices by customer level.
• Choose Items Ledger
Again, you will see a ledger card. This time it shows all invoices which include this particular item.
• Choose Customers Set Up
This window allows you set up the customer information. Notice that there are pop-up menus for such items as Terms. You can also enter an unlimited number of Ship to addresses for this customer.
If you choose View by Summary 2, you will again see historical information relating to this customer.
Like all Components modules, the A/R allows you to set up your own entry journals. You can set up Cash Receipts, Credit Memos, Sales Journals and others.
Most importantly, you can set up and redesign your invoice entry journal. You begin with an Invoice journal with all available fields displayed.
• Choose INV1-Invoice1
This shows the journal with all entry fields. However, some businesses may not need all of this information. Therefore, you can modify this entry window.
• Choose Modify Invoice from the Edit menu
This puts the journal into an edit mode. You can select a field and drag it to the Modify floating window. If you later wish to add this field back to the invoice, you can drag it from the floating window.
The fields that are left over can be moved, and even the tabbing order can be changed.
• Close the window (do not save changes) and choose INV-Invoice
This is an example of an invoice journal that has already been modified.
Let’s use this invoice to examine another feature of the A/R, extended descriptions.
• Begin to fill out an invoice entry. At the item description line, type 50-100 characters of text.
This package allows you to enter as much descriptive information for each item as you may need. This is very handy for service businesses, or businesses that need to enter a unique description for each item.
To complete our look at the A/R, we can refer to the features described earlier in the G/L section.
• Close all windows and look at the items in the Action menu
The first item is Post Journals. Like the G/L, you can selectively post journals when you wish. Other items in the Action menu do such housekeeping chores as add finance charges, age customers and clear paid invoices from the journals.
One of the most important needs for a business is the ability to design their own invoices. We’ve already looked at the reporting toolbox of Components.
• Look at some of the reports in the View menu
Again, there are predefined reports and templates which can be modified. There is a virtually unlimited number of reports you can design from scratch. For a sales oriented business, custom generated information can be vital.
Components Accounts Payable
Components Accounts Payable will track your vendor purchases, print checks and do your bank reconciliation. Detailed purchase and payment history is tracked and, because of the report-writing capability, you can print on virtually any type of check stock.
The key features of the A/P include the ability to design your own check, review the schedule of your payments, automatically select purchases for payment and reconcile your bank accounts.
If you are using the Job Cost / Time Billing module, purchase information can be directly distributed to existing jobs, or projects.
• Open the A/P module
Components A/P uses all the graphical features found in the other packages. For the sake of this demo, we will look at some of the key windows found in this module.
• Choose Vendor Set up from the Accounts menu
This is the window you use to set up your vendor information. Notice that you can include G/L expense number information, if you wish. This option will automatically distribute a percentage of the purchase to each expense account you set up here.
• Choose the PUR-Purchases journal from the Journals menu
This is the basic purchase entry format. Notice that as you enter the vendor #, most of the fields will automatically fill in.
• Next, choose the PUR2-Purchases journal from the Journals menu
If you are using the Job Cost / Time Billing package, you can include Job Cost / Time Billing distribution information in this journal format. This includes jobs, phases, activity, quantity and amounts.
Now, let’s look at the scheduling and payment selection process.
• Choose Payment Scheduling from the Action menu.
This window, organized vendor by vendor, will allow you to review and edit scheduled payment information.
• Choose Payment Selection from the Action menu.
This is the window where you actually select which purchases you wish to include in the next check run. There are several boxes to allow you to filter the list of purchases from which you wish to choose.
• Select the All Unpaid check box.
Notice that we now have a list of purchases ready for payment. By using the mouse, we can select individually specific purchases to pay.
• Choose the Pay Invoices option from the Action menu.
If you are ready to pay these purchases, you can choose this option (Pay Invoices) and the check information is automatically created in the check journal.
• Choose CHK-Standard Check from the Journals menu.
You can review these checks now, or continue with the printing process.
• Choose (or display) the Print and Post Checks selection from the Action menu.
Once your checks have been posted, they will be displayed in the Bank Reconciliation window.
• Choose Bank Reconciliation from the Action menu.
Notice how you can reconcile your bank account by simply using the mouse to check the cleared items.
• Close all windows.
Components Job Cost / Time Billing
Components Job Cost / Time Billing is designed to handle the service accounting needs of many different types of professional firms. Because of its great flexibility, Job Cost / Time Billing is ideally suited for ad agencies, designers, architects, engineers, lawyers, consultants, contractors and others who bill for services and expenses.
A key feature of the Job Cost / Time Billing package includes the detailed tracking of clients, jobs, employees and activities. For activity entry, you can choose to use either a time slip or time sheet format. When you are ready to print bills, they can be designed to reflect the professional quality of your firm.
If you are using the Accounts Payable module, expense information can be transferred directly from that package.
• Open the JC/TB module (Use the Communications folder for ad agencies, designers and public relations firms; use the A.E.C. folder for architects, engineers and contractors; use the Legal folder for law firms and accountants).
The JC/TB package maintains the consistent Mac interface found in all Components modules. Let’s look at some of the key windows.
• Choose Job Setup from the Accounts menu.
Once you have set up your data for employees, actions (tasks), clients, terms and rate schedules, you can begin the setup for a new job. Notice that jobs can be set up with a fee basis of transaction (time and expenses) or contract (fixed amount).
As you complete the new job set up, you can define the phases you wish to establish for this job. Sub-dividing your job into phases is optional. Notice that you can specify a billing format to go with this job.
• Choose View by History from the Job Setup window.
This window gives you a glimpse of the kind of information being tracked by each job. Detailed information like this can easily be put into your custom reports.
• Choose Job Estimate from the Accounts menu.
Detailed estimates can be entered for each job you set up. If you have set up a transaction type job, the estimate window is an important budgeting tool. If your job is by contract, the estimate window allows you to define the contract amounts, phase by phase.
After the jobs and other setup data has been entered, you are ready to begin the entry of time and expenses. Time and expenses are entered through of either of two journals – Time Slip or Time Sheet.
• Choose TS1-Time Slip from the journals menu
This is the time slip format for data entry. Your entry begins below the double line. Using the time slip format, you have room for long descriptions to go with each entry. Notice that there is a timer button if you wish to time your activity as you work.
• Tab to the Job # entry field and press CMD-3 to use the Job Lookup window. Show how you can use lookups like this to fill in each entry.
When your time slip is complete, you can press enter to save this one and begin a new one. One time slip window is used for each entry. Some firms may prefer to use a time sheet format. This will allow multiple entries per window.
• Choose TS2-Time Sheet from the journals menu.
This is the time sheet format. It is organized by employee, and you can make as many entries on the time sheet as you need. Entries can be made daily, weekly or whatever period you prefer.
• Choose Job Ledger from the the Accounts menu.
Each job that you set up has its own ledger card. These ledger entries are maintained for the entire life of the job. Additional ledger cards are maintained for clients, employees and actions (tasks).
After your time and expense entries are made for the jobs, you are ready to bill your clients. You can bill at any time, for any group of jobs that you wish.
• Choose Bill Selection from the Action menu.
This window will display all of your active jobs which are ready for billing. If your job is a contract job, you will need to enter the amount you wish to bill this time. If your job is by transaction, you can choose which transactions you wish to include on this bill.
By double-clicking a particular job in the Bill Selection window, we can review the billing information in a Prebill window.
• Double-click the line Sample Job by Contract
This is the prebill for a job set up to be billed by a contract amount. Notice that there are 5 phases in this job. We can bill by phase or percentage complete by filling in the desired amounts in the % to bill or Amt. to bill columns.
• Type in 20-30% for each phase
• Select the Bill Selection window
Notice now that the bill amount for the Sample Job by Contract reflects the entries we made in the Prebill window. Next, let’s look at the prebill of a transaction type job.
• Double-click the Sample Job by Transaction in the Bill Selection window.
Now we can review this job, time slip by time slip. Each unbilled slip is listed here. If we wish the actual slip, we can double-click upon the line entry in the prebill window.
• Double-click a time slip line entry in the prebill window.
The actual slip appears for review and, if we wish, it can be edited and re-saved.
• Close the time slip window and again look at the prebill entries.
Notice the check marks to the left of each listed slip. We can omit a particular slip from billing by unchecking that item. Now let’s look again at the bill selection window.
• Select the Bill Selection window.
The Sample Job by Transaction shows an amount to bill which reflects the selected slips. A short-cut way to select a range of slips is to use the Bill Parameters feature.
• Click the Bill Parameters button.
This dialog allows you to select a range of slips by date, as well as set the invoice date and beginning invoice number.
• Click Cancel or OK
Now that you are ready to bill, you can select Print and Post Bills from the Action menu. Your bills will be printed out for your review. If you are ready to finalize them, you can continue with the posting process.
Once again, remember that Components offers an unmatched ability to customize your bills or reports in a presentation quality format. The package comes with many templates already set up, which include budget reports, time reports, status reports, comparisons, aging information and much more.
• Click on the View menu to show the listed reports.
You or your consultant can modify these templates or design your own management reports from scratch using Components Object-Oriented tool box.
