Scrap Dragon’s General Ledger Interface passes accounting data electronically to your preferred General Ledger accounting systems without any additional manual data entry.
This is done as a 2 step process: The Scrap Dragon data is exported to an intermediary file and then that file is immediately imported into the General Ledger system. The end result is that the data from Scrap Dragon appears in the General Ledger accounting system as if it had been keyed in.
Some G/L Accounting systems use batch entry and in those cases, the data will appear in a data entry batch that can be reviewed and edited prior to posting to the G/L. Other systems use direct entry and in those cases, the data will appear already posted.
Detailed inventory is maintained in Scrap Dragon in pounds and dollars. Each inventory item is assigned a G/L account for Inventory, Revenue and Cost of Sales.
Purchases are added to the Inventory account at the actual purchase cost while Sales are removed from the Inventory account and added to the Cost of Sales account at the average inventory cost.
Because of the immediacy of most scrap purchase transactions, there isn’t time to utilize the accounts payable features of the G/L Accounting system. Instead all of the detail accounting for scrap purchases is completely handled by Scrap Dragon. Scrap Dragon maintains all of the detail information on what is owed and to whom. In accounting terms, this is known as a subsidiary detail ledger. Only summary A/P information is transferred to the G/L Accounting system. This can be done either through a manual journal entry or with the electronic interface.
Summary Scrap purchases can be recorded using either a cash or an accrual method. Using the cash method, the scrap purchase isn’t recorded until it is paid for. Using the accrual method, the scrap purchase is recorded when the material is received. The Scrap Dragon electronic G/L interfaces use the accrual method. It is important to do the A/P transfer on a daily basis, because tickets and payments from previous days can be adjusted in Scrap Dragon. Scrap Dragon assumes that any ticket or payment that is adjusted for a prior date has already been transferred to the accounting system and an adjusting entry is automatically created.
Scrap Dragon handles the entire sale processing up to the creation of the invoice. Invoices are then transferred to the G/L accounting system. A/R balances and reconciling of receipts is handled in the G/L Accounting system. Invoices that are transferred are flagged in Scrap Dragon so that they cannot be transferred again.
If an invoice that has already been transferred is subsequently deleted, a credit memo may be automatically generated by Scrap Dragon and sent to the G/L. This is not available for all G/L accounting systems and the credit memo may have to be manually entered into the G/L. Invoices can be transferred at any time.
To setup Scrap Dragon there are a few steps: G/L Package (select package name), Transfer Options, Chart of accounts (enter pertinent account numbers/names for combo boxes), Account identification (set up the specific required accounts), Customer xref (in customer maintenance), add G/L account ID for ‘Bill To’ customers only, and lastly Inventory Accounts in the Inventory file maintenance (add G/L account numbers for each inventory item).
To setup the accounting package you only need Customers, Vendors, and Items.
- dr Accounts Receivable (by customer number)