The purpose of this user’s guide is to outline The Way (our suggested workflow) for setting up the Accounting module in Workamajig. Reading this guide on the “Basic Setup” should give you the tools to get familiar with the basic requirements and guidelines to follow for setting up your accounting procedures.
“Basic Setup” of the Accounting module in Workamajig includes everything necessary in the System Setup menu. These are the menus and topics that are covered in this guide:
- Global Options Menu: Setting up the Security Rights needed to access the Accounting module, and setting up your Departments and Offices if applicable.
- GL Settings Menu: Setting up GL Companies if applicable, setting up your Chart of Accounts (GL Accounts), GL Tracking Options – setting up how the system will track your financial transactions including setting your default GL accounts and WIP tracking (if applicable), Recurring Transactions, and Check Formats.
Basic Setup Procedures
Before we can get started with Accounting procedures in Workamajig, we need to make sure you are set up with the proper security access to the Accounting areas of the system. If you are not currently set up with Administrative access to the system you will need to have your System Administrator set you up with the following Security Rights. If you already have Admin access, you can follow these steps yourself for other users that may need access to the Accounting module.
Go to Menu > Admin > System Setup > Global Options > Security Settings. You will be brought to a screen listing your Security Groups on the left side and the list of available Security Rights on the right side.
From the list of Security Groups on the left side, select the Security Group you are setting up with Accounting Module rights. Then from the list of Security Rights on the right side of the screen scroll through and select all or some of the following rights:
1. Maintain Setup Information: This right must be selected in order to access the rest of the Security Rights listed below.
2. Edit Global Options: This right will allow the users access to the menus in the System Setup > Global Options menu. The Global Options menu holds many of the items pertaining to the setup of your Accounting module.
3. Edit GL Settings: This right will allow the user access to the GL Settings menu where they will be able to access many of the basic Accounting setup items like Control Accounts – where you designate specific GL Accounts as default accounts for transactions to post to automatically, etc.
4. Edit Labor Budgets: Allows the user to edit Labor Budgets created in Workamajig.
5. Enter Journal Entries: This right will allow the user access to the Journal Entry screen to enter Journal Entries.
6. Enter GL Budgets: This right allows the user to create and edit Financial Budgets.
7. Maintain GL Accounts: This right will allow the user access to GL Accounts, Control Accounts, GL Tracking Options, and Check Formats. There are 3 subcategories under this Security Right giving access to view/edit labor budgets for each office or department and to view any or all people on the charge ability summary report. Each of these 3 rights can be selected at your own discretion.
NOTE: In order to maintain GL Accounts the user must also have the right to Edit GL Settings selected.
8. Reconcile GL Accounts: This right will allow the right to the Account Reconciliation screen to create, view, and edit an Account Reconciliation.
9. Post WIP to GL: This right will allow the access to the screens necessary for Posting WIP to the GL.
10. Post Transactions to the General Ledger: The right to access the Post Transactions screen as well as, to run the pre-posting and missing transactions reports, and to post transactions to the GL.
11. Edit Transactions After Approval: This right allows the user to edit or unapproved any transaction that they have access to.
12. Enter Receipts: Allows the user access to the Receipts screen in WMJ and allows the user access to enter Client Receipts into the system.
13. Add and Edit Payments: This right allows the user access to create a Vendor payment, select invoices for payment, and to cut checks.
14. View AR Reports: This right allows the user access to the other reports listed in the AR Reports center.
15. AR Account Aging: Allows the user access to run the AR Aging Report in Workamajig.
16. Sales Journal: Allows the user access to the Sales Journal report.
17. Cash Receipts Journal: Allows the user access to the Cash Receipts Journal report.
18. View AP Reports: This right allows the user access to the other reports listed in the AP Reports center.
19. AP Account Aging: This right allows the user access to run the AP Aging report in Workamajig.
20. AP Exceptions Report: Allows the user access to the AP Exceptions report.
21. AP Listing: This right allows the user to access a list of all Vendor Invoices including line detail.
22. Purchase Journal: This right allows the user access to the sub-ledger report of Vendor Invoices by date range.
23. Cash Disbursements Journal: Allows the user access to the sub-ledger report of Vendor Payments.
24. 1099 Vendor Detail: This right allows the user to access the 1099 Vendor Detail report, as well as, to print 1099 and 1096 Forms.
25. AP Accrued Order Detail Report: Allows the user access to the Accrued Order Detail report which shows all orders with accrued balance as a result of pre-billing. Pre-billing means that you are billing your client the amount of the order before you receive the actual Vendor Invoice expense for the order.
NOTE – The Security Rights listed above do not represent the entire list of rights available to you and your users. These are the suggested rights one can be set up with in order to view and edit the areas of the Accounting module in Workamajig which this guide will cover.
For further assistance with setting your Security Groups up, please contact your Workamajig Account Manager by emailing firstname.lastname@example.org.
After getting your Security Rights in order, go back to your Global Options menu for some more general setup.
Go to Menu > Admin > System Setup > Global Options:
Here we will focus on two areas under the “Lists” section, Offices and Departments. Ask yourself - do I have more than one Office and do I need to separate out my Employees and Projects by Office? Do I have a need to record the different Departments in my company to be able to sort and run reports by Department? If your answer is YES to all or either question, keep reading. If you answered No you can feel free to skip to the next section on your GL Settings menu.
Offices: This feature is used to separate out your Employees and Projects by “Office”. This can be useful when running certain reports like your Chargeability Reports or your Project Profitability Reports. Offices are set at the Project level and can be used to run Profit & Loss reports at the Office level. If using Offices, every GL transaction (like Client Invoices and Vendor Invoices) tied to that project will post under the Office selected at the Project level based on the referenced project number. Your Office prefix can be used to number your Projects in Workamajig automatically for you. Your project numbering method is something that is set up in your Transaction Preferences menu. For more information about project numbering methods please contact your Account Manager by emailing email@example.com.
If you intend to use Offices to separate your Employees, Projects, and info for financial reporting and organizational purposes, you’ll need to enter your Offices here:
Departments: Like Offices, Departments are used to group and separate your information; only Departments are global across a Company and will be the same from Office to Office. Departments are set at the Item and Service level and can be used to run Profit & Loss reports at the Department level. Departments can be used on several reports for filtering and grouping data as well. Each Service and Item can be set up with a Department designation. Each GL transaction will then post to its pertaining Department ONLY if you have selected to “Post Sales Using Detail” (an option in your GL Tracking Options menu explained below). If you would like to use Departments for grouping your information in Workamajig, please list them here:
Now that you are set up with the security access and we have gone through how to set up your Departments and Offices (if applicable), let’s take a look at your GL Settings menu.
Go to Menu > Admin > System Setup > GL Settings:
There are six sub-menus in GL Settings: GL Companies, GL Classes, GL Accounts, GL Tracking Options, Recurring Transactions, and Check Formats. The GL Setting menu is where we will be setting up everything behind the scenes for your Accounting module in Workamajig.
GL Companies: GL Companies are used when you need to keep a separate set of books for example if you have an east coast company and a west coast company that is the same business but your financials are kept separate. GL Companies are used to separate transactions posted to the general ledger. GL Companies are also set at the Project level and will enable you to run financial reports like your Balance Sheet and/or your Profit & Loss report separately for each financial Company. If you want to use GL Companies as a means to segmenting your transactions, enter your GL Company names and info here:
NOTE – Please contact your Workamajig Account Manager for more guidance on the use of GL Companies and determining whether or not it is the right choice for you. You can contact your Account Manager by emailing firstname.lastname@example.org :
GL Classes: GL Class is another level of financial separation in Workamajig but this is a feature no longer recommended by the Workamajig Support and Training team. GL Classes will eventually be phased out in favor of using Departments, Offices, and GL Companies.
GL Accounts: This is your Chart of Accounts. There are different types of accounts that assist in tracking different types of financial information. They also control how and where records will appear on financial statements. The type of account combined with the Account Number control the order in which account items will appear on your reports.
You can also create roll-up accounts that will roll up amounts from sub-accounts for summarized reporting. You cannot post values directly to a roll-up account. While you can have more than one of each account type, Workamajig requires that you have at least one Bank Account, Accounts Receivable, Accounts Payable, and ONLY one Retained Earnings type.
Take a look at the default Chart of Accounts that have been preloaded into your system. What you need may already be there. If you need to change an account name or number you can by selecting the pencil icon next to the Account then make the changes you need and save.
To add a new account simply select “New” and fill in the Account Type, Account Number, and Account Name. Then select whether or not it will be a Roll Up Account or a Sub Account (take note of the 400 accounts listed above in the screenshot for an example of a Roll Up Account and it’s Sub Accounts), keep it marked “active” and save:
Importing your Chart of Accounts is possible too! Simply refer to the Help Guide and from the contents in the left side panel select “How Do I Workamajig” > Admin > Data Exchange > Importing and there you will find a detailed xls. file containing the information you will need to format your import spreadsheet. Please contact your Account Manager for more assistance with importing your information into Workamajig by emailing email@example.com
GL Tracking Options: This is where you will manage how the system will keep track of your financial transactions. There are five parts to this menu: GL Tracking Options, Default GL Accounts, Work in Progress Tracking, Prebilled Purchase Orders and Media, Advance Sales Tracking, and Legacy Integration.
The first portion of this menu is called GL Tracking Options:
● GL Closing Date: The GL Closing Date is used to determine the earliest date that a transaction can be posted to the ledger. All reports are date sensitive and dynamically calculated based on the underlying transactions. You cannot post transactions to the ledger with a posting date prior to the date you have entered here as your GL Closing Date. You can modify this date at any time if you need to open a prior transaction and modify it.
● First Month of Fiscal Year: Enter the first month of your fiscal year here. This will be used to run year-end financial reports.
● Require GL Accounts: This option is checked by default. This option is required if you intend to use the Accounting module in Workamajig and post transactions to the General Ledger.
● Track WIP in GL: If you intend to track Work in Progress, this option must be selected. To track WIP in Workamajig is to track the value of unbilled labor and expenses as assets on your Balance Sheet. If you have this option selected, the system will also require you to enter items on your expense entries. If checked, a complete section of the Default GL Accounts called “Work In Progress Tracking”(below) will appear and need to be filled out in order for this feature to work. NOTE – WIP will be covered in detail in the “Month End Procedures Including WIP” guide.
● Show/Require GL Companies: If you intend to use GL Companies to segment your financial transactions, you must select “show”. To require a GL Company to be selected on each transaction entered into the system select “require”.
● Show/Require Offices: If you intend to use Offices to separate and group your Employees and Projects, select “show”. To require that an Office is selected on every Employee Record and Project select “require”.
● Show/Require Departments: If you intend to use Departments to organize and group your information select “show”. To require a Department to be selected when entering info into the system select “require”.
● Show /Require Tasks on Expenses: When adding an Expense to a Project in the system you can select to show which Task within the Project the Expense pertains to. To require a Task to be selected when adding an Expense select “require”. Showing and requiring tasks on your expenses is recommended by the Workamajig Support team.
● Show/Require Items: If this option is checked, the system will allow you to select which type of item will be linked to each transaction. It is recommended that this is checked and required.
● Track Quantity on Hand: this allows you to track the amount of an item you have on hand. Each item can be manually updated with a quantity on hand value. When a vendor invoice is approved, the quantity on hand is increased for each item on the vendor invoice. When an item is used on a project as a miscellaneous expense, the amount is reduced for that item.
● Default Expense Account From Item: If this option is selected the expense account used will be the one obtained from the actual purchase item on vendor invoice lines rather than the account designated as the overall default Expense Account.
● Show/Require Class: Disregard this option as Class is no longer recommended in Workamajig.
Once you are finished filling in your preferences here you can move to the next portion of the GL Tracking Options menu, Default GL Accounts.
Default GL Accounts: In this section, you will designate which GL accounts will be your default accounts for specific transactions to post to.
● Next General Journal #: Enter the next Journal Entry number you would like your Journal Entries in Workamajig to start with.
● Billing Account (AR): Enter the default AR account you would like to be used on your Client Invoices.
● Default Sales Account: Enter the default Sales account you would like to be used if the system cannot determine the sales account from the client or a billing item.
● Vendor Invoice Account (AP): Enter the AP Account you would like the system to use on your Vendor Invoices.
● Default Expense Account: Enter the expense account you would like the system to use if it cannot determine an expense account from either the item or Vendor record.
● Cash Account: This is your main checking account. Enter the bank account that should be used when entering cash receipts into the system.
● Unapplied Cash Receipts Account: This essentially going to allow you to work backward in the system. For example, if a client pays you before a job is created or before you have invoiced them, or if a client overpays you, it will be considered a temporary asset here in your default Unapplied Cash Receipts Account until you are ready to apply it to a Client Invoice.
● Unapplied Payments Account: This works in the same way as your Unapplied Cash Receipts Account but will be used when you need to pay a vendor before you have a Vendor Invoice to apply it to.
● Write Off Account: This is your bad debt expense account. Enter the account that should be used for items that are uncollectable.
● Advance Billing Account: This is different than your unapplied receipts account. This is your deferred revenue as a result of billing before a job starts. For example, if you charge your client 50% of the total bill up front before you start work on the project, that 50% will be considered deferred revenue until work is applied to it. When you post an Advance Billing Invoice, your AR account will be debited and your Advance Billing account is credited instead of Sales.
● Purchase Discounts Account: This account is used as a result of early payment discounts offered by vendors.
Work In Progress Tracking: If you have selected to “Post WIP to GL” above in the GL Tracking Options section, you will need to complete this portion designating which WIP accounts will be used as defaults when WIP is posted to the ledger. NOTE – WIP posting procedures will be covered in depth in the “Month End Procedures Including WIP” guide.
● Agency Time (Asset): When posting WIP, this account is debited and the account you enter as your default Agency Time Adjustment account (below) is credited as deferred revenue. When you bill for the labor, the system will automatically reverse it out and credit your Agency Time Asset account and debit your Agency Time Adjustment account.
● Agency Time Adjustment (Income): When posting WIP, this account is credited and your Agency Time Asset account is debited. When labor is billed, the system will automatically reverse it and this account will be debited and your Agency Time Asset account will be credited.
● Agency Write-off (Contra Income): When labor is written off your Agency Time Asset account will be credited and this write-off account will be debited.
● Other Expense (Asset): Enter the GL Account for miscellaneous expenses and expense reports.
● Re-billable Expenses (Income): Enter the GL Account that should be used for tracking the income side of Other Expenses when posting WIP. When Other Expenses are posted to WIP, this account is credited.
● Expense Writeoff Account (COS): Enter the GL Account that should be used when transactions are written off. When you write off transactions, and then post WIP to the ledger the system will credit the Other Expense Asset account and debit the Expense Write Off Account.
● Media Invoice Accrual (Asset): Enter the GL Account for Vendor Invoices related to the Broadcast Orders and Insertion Orders.
● Media Invoice Writeoff Account (COS): enter the GL Account that should be used when media transactions are written off. Once WIP is posted to the ledger the system will credit the Media Invoice Accrual (Asset) account and debit the Media Invoice Write-off account.
● Productions Invoice Accrual (Asset): Enter the account that should be used to track the asset side of the direct expenses when posting WIP
● Production Invoice Writeoff (COS): Enter the GL Account that should be used to track the Write-off amount when direct expenses are written off from a project.
Prebilled Purchase Orders and Media: This portion of your GL Tracking Options menu must be filled out if you intend to pre-bill your clients for Purchase and Media orders prior to receiving an actual expense from your Vendor(s).
Automatic accrual and reversal entries are made when Client Invoices and Vendor Invoices containing orders are posted to the ledger. This ties revenue of the sale and adds an accrued cost of sales in the same period. The reversal simply re-classifies the accrued cost of sales to the actual cost of sales based on the period that the actual Vendor expense is received and posted to the GL.
When a Client Invoice containing orders is posted to the GL, it will do the following:
>Debit AR, Credit Sales
>Debit Accrued Cost Account (Expense), Credit Pre-bill Accrual Account
When a Vendor Invoice is entered against the pre-billed order and posted to the GL, it will do the following:
>Credit AP, Debit COGS (based on the expense account set up on the item)
>Credit Accrued Cost Account (Expense), Debit Pre-bill Accrual Account
● Accrued Cost Account (Expense): Enter the account that should be debited when the order is billed and credited when the Vendor Invoice is posted. This is typically a COGS account.
● Prebilled Accrual Account: Enter the account that should be credited when the order is billed and debited when the Vendor Invoice is posted. This is typically a Current Liability account
● Accrued Cost to Item Expense Account: When this option is checked the system will use the expense account designated at the individual item level when posting the prebilled accrual instead of the default Accrued Cost Account designated above.
Advanced Sales Tracking
● Post Sales Using Detail (Default): In most cases, people will keep this option checked. This is used as a default setting for invoice line items. When this option is selected, the system will look at each transaction and those tied to billing items and determine the sales accounts and Departments to post to.
● Track Sales Over/Under: This option is used to track the sales of variance on an invoice based on standard versus actual. When this option is checked, the system will post an entry to its normal sales account based on the standard bill rate or gross amount. The system will then create a second entry to the sales or expense over/under account for the difference between the standard amount and the amount that was actually billed. If you were to bill one hour of time at $100.00 per hour and you actually billed the time for $80.00 the system would post $100.00 to the normal sales account and ($20.00) to the labor over/under GL account.
● Labor Over/Under Income Account: Enter the GL Account that should be used to track the variance in labor sales.
● Expense Over/Under Income Account: Enter the GL Account that should be used to track the variance in expense sales.
Legacy Integration: This option is no longer in use in Workamajig.
After going through the GL Tracking Options menus, go back to your GL Settings menu for the two remaining subjects.
Recurring Transactions: In Workamajig you have the ability to create Recurring Transactions. Perhaps there is a Journal Entry that needs to happen at the end of every month or maybe you have a Vendor that you pay regularly and you’d prefer the convenience of having the system create those transactions automatically for you. This screen is where you will be able to keep track of all of your Recurring Transactions in one place. Instead of going to your Journal Entry screen to look up a recurring entry and then to your Invoice listing to look up a recurring invoice, etc. you can just come here and find everything you need in one menu.
Check Formats: This is where you will customize the layout, font, and style of your printed checks cut from Workamajig. There are three default check layouts that you can choose from: Check-Stub-Stub, Stub-Check-Stub, and Stub-Stub-Check. Or you can create your own. NOTE – it is much easier to edit an existing default than to start over from scratch.
Most of our users have a 3-part check (“check-stub-stub”) therefore, we recommended using one of the defaults preloaded check formats and maybe adding a few tweaks here and there as needed. Before actually printing a check from Workamajig it is a good idea to make a photocopy of a sheet of your checks and do a test print run on that photocopy to make sure everything lines up. If you need to make any changes to the margins or font, this is where you will make those changes! Instructions for creating payments and cutting checks will be covered in detail in the Accounts Payable Procedures guide.
Remember to contact your Workamajig Account Manager with any further questions by emailing firstname.lastname@example.org.