This post will focus on the configuration and setup of your accounting integration. To learn more about using the accounts integration on a day to day basis, click here.
Disclaimer: We strongly advise making changes to your account setup only under the direction of your Accountant and/or vintrace Support staff.
vintrace operates as a sub-ledger to Xero for the purpose of tracking dollar movements related to your Asset, Work In Production and Cost of Goods sold accounts. You must setup an Account in vintrace for each account in Xero that you want to track. These Accounts must then be linked to those in Xero. Based on this configuration vintrace will determine what production transactions are journaled on each Accounts Sync to Xero. We advise running the Accounts Sync once a month.
Navigate to the Accounts section via Winery Setup – Accounts.
vintrace will be loaded with several default Accounts. Review this list and, for each account:
- Review the Account name to ensure it is appropriate for your own use. It is recommended to keep the names the same as your Xero account names.
- Link the Account to the appropriate Account code in Xero (see below)
- Ensure you have the appropriate Cost method selected. The default is Direct. See here for an explanation on Cost method.
- Set the Opening date and Account balance to reflect your existing Chart of Accounts balance as of the selected Opening date.
- Determine whether or not the Account is Syncable to your General Ledger. The default options are generally acceptable. See here for an explanation on how vintrace determines what journals are Synced.
The Account Code is your identification number for Xero. Clicking the button next to it will query Xero for your existing list of Accounts. Select the Xero account you want to link to your vintrace Account.
Note: You are not required to setup your entire Chart of Accounts in vintrace. Only those that pertain to vintrace as it operates as a sub-ledger. i.e. your Asset, Work in Progress and Cost of Goods sold accounts.
Once your Accounts are configured you have the option to link them to Bulk products, Stock items and your Sales and Purchase order Items.
- Cost Item – for adhoc cost adjustments
- General Item – for use on Purchase Orders
- Barrel Category – for use in Purchase Orders
- Sales Order Item – for use on Sales orders
- Program – for linking Bulk products, set the Account on the Program. Each Wine lot should then have the appropriate Program linked
- Stock Category – for linking finished good or dry-good stock at a Category level
- Stock Item – for linking specific finished good or dry-good items
As there is a lot of flexibility in configuring your Account linkage to Products and Items we provide the ability to set some defaults. These are configured by selecting the Defaults button under Winery Setup – Accounts.
When creating journal movements between accounts, if there is no Account linked to the specific item then the system will fall back to using the default.
For example, A wine product with no Program or a Program without a account will fall back on the default Work In Progress Account. A stock item with no account linked will fall back on the default Asset Account.
After configuring your accounts we suggest you configure your tax and excise rates. See this post here: Configuring Tax Rates