So, you have already taken the plunge and got on board with Sage Live. Awesome, this gives you a fantastic platform to push on and really make a success of your business, allowing you time and freedom to focus on those parts of the business that really need you.
Getting started on a new accounting system can get scary even for a team of accounting software specialists like us, so we’ve put together this article, which outlines everything you need to know about the system to get you started!
This is the third article in an ongoing series on Sage Live. To view the previous articles, go to: How Sage Live Can Get You to Analytical Accounting and Three Great Sage Live Integrations.
Understanding the Concept
The first and most important point to come to grips with regarding Sage Live is the concept. Sage Live is very different from previous Sage products, and although you may be familiar with Sage 50 or Sage 200, the whole concept of Live is extremely different.
The purpose of Sage Live is to automate as much as possible, making those mundane tasks like data entry and reconciliation a thing of the past. This should free up the time to focus on the second focus point, reporting.
Dimensions and Tags
These provide you with the capability to track and measure pretty much anything you want! Once these are set up in the system, and you are processing transactions, you can then focus on getting the reporting that you would like out of the system. This has much more value than you sitting matching transactions from your bank and accounts, right?
Transactions or Journals?
Within Sage Live, you have transactions and journals. Inside these categories, you then have transaction types and journal types. The only difference between your transaction and journal is that a transaction contains a document. Transactions and journals post in the same way, you can import them in the same way, and you can report on them in the same way.
So your transaction type would be, for example, a Sales Invoice. These transaction/journal types then have assigned Posting Rules. The way the system works is that when you enter your information into your transaction/journal type, and you click the Post button, the system goes to the Posting Engine. The posting engine then looks at the posting rules and determines where to post what values!
Your posting rules may define a specific ledger account, or they may say “Look to dimension A for the associated ledger account.” If it can’t find the correct posting location, the transaction won’t post.
Setting up Accounts & Products
As I’m sure you’re aware, Sage Live is built on the Salesforce1 Platform and so shares some fundamental properties with Salesforce. One of these shared properties is the use of Business Accounts. All customer and supplier accounts in Sage Live are effectively Salesforce Business Accounts. However, they are also tags to the Sage Live Customer or Supplier Dimension.
The same logic applies with Products in Sage Live. You are required to select a product when creating a new invoice. What you are selecting here is the Sage Live Product Dimension. This is, however, linked up to the Salesforce Product Object, as shown in the graphic below.
So, when creating new Accounts or Products in Sage Live, it is important that both sides of this are set up. The easiest way to ensure that this happens is to enter new Account or Product from the Sales or Purchases tab within Sage Live. When you do this, both the Salesforce Object and Dimension Tag are created.
Adding a New Transaction
When you are entering any transactions in Sage Live, the process comes in two parts:
First of all, you enter the Header information. This includes information like:
- Invoice Date (Date of Invoice)
- Posting Date (Date of Ledger Entries)
- Tax Treatment
- Any dimensions required on the Header Posting Rule
You are not required to enter any values in this section.
Once this is complete, you can click Save & Add Item. This allows you to add lines onto the invoice. Here, you are prompted to choose a Product, Price & Tax Code as well as any dimensions required on a line level. For example, this may include Project, Department, and Consultant, to name just a few.
Once you have saved the Line Item, you are able to add more or complete the transaction. Once completed, the transaction will appear on your list as unsubmitted. You can then select the transaction and click the Post button. This will then make the ledger entries as per the posting rules.
If for any reason, you need to change the details of this transaction, you can click the Unpost button, edit and the repost! Easy as that!
Sage Live is a very easy to navigate system that ultimately provides users with flexibility and more time to focus on value-added tasks. Hopefully, this article has helped you understand a little more about how and why the system works the way it does. If you would like more information about Sage Live, or would like some more in-depth training, get in touch with us at itas.