Introduction to the Financial Module

Introduction to the Financial Module

The Cin7 Core Financials module covers processes involving expenses and money. Here are some of the financial features you are likely to use in your operations. Cin7 Core can be used as a standalone inventory management and accounting system, or integrate with Xero or QuickBooks Online accounting systems. If you are using Xero as your accounting system, some Financial modules features will not be available.

Note: Financial Reports are not covered in this KB module – go to the Reporting module for more information.

Financial module permissions

Cin7 Core offers fine-grained control over user permissions. Grant users full or read-only permission to the different features of the financial module, and create roles with pre-defined permissions to assign to users.

Cin7 Core allows you to set the following permissions for the financial module (Settings → Users and Roles), under Financial:

Accounting dimensions

Accounting dimensions are like tags, or data, that you can add to each transaction so that they can be grouped for analysis purposes. E.g. Customer Group, Business Group, Cost Centre, Product Region. Each accounting dimension and its values are user-defined.

  • Settings: ?

  • Transaction tab: ?

 

Bank

Enable bank account features – these are accessed via Financials → Bank Accounts or Settings → Reference Books → Financials → Bank Accounts. This includes adding bank accounts, editing bank account details, importing bank statements via CSV and reconciling bank statements with Cin7 Core transactions. This is not applicable if you are using Xero as your accounting system – bank accounts are managed/reconciled through Xero. If you are using QuickBooks Online, bank account creation is not available in Cin7 Core, but other bank account features are available.

Fixed Assets

(Full Access) Enables adding and editing fixed assets, registering fixed assets and posting depreciation for fixed assets. Accessed via Financials → Fixed Assets. Enables adding and editing fixed asset types, accessed via Settings → Reference Books → Financials → Fixed Asset Types. (Read-only) View fixed assets and fixed asset types.

Spend/Receive Money

Accessed through Financials → Money Tasks. The Spend/Receive money functions allow you to quickly input into Cin7 Core the money entering and leaving your bank accounts. If you are using Xero, this function will not be available in Cin7 Core – spend/receive money operations are handled through Xero. There are 3 Spend/Receive Money permissions:

  • Cin7 Core offers fine-grained control over user permissions. Grant users full or read-only permission to the different features of the financial module, and create roles with pre-defined permissions to assign to users.

    Cin7 Core allows you to set the following permissions for the financial module (Settings → Users and Roles), under Financial:

    Enable bank account features – these are accessed via Financials → Bank Accounts or Settings → Reference Books → Financials → Bank Accounts. This includes adding bank accounts, editing bank account details, importing bank statements via CSV and reconciling bank statements with Cin7 Core transactions. This is not applicable if you are using Xero as your accounting system – bank accounts are managed/reconciled through Xero. If you are using QuickBooks Online, bank account creation is not available in Cin7 Core, but other bank account features are available.

    Accessed through Financials → Money Tasks. The Spend/Receive money functions allow you to quickly input into Cin7 Core the money entering and leaving your bank accounts. If you are using Xero, this function will not be available in Cin7 Core – spend/receive money operations are handled through Xero. There are 3 Spend/Receive Money permissions:

    Spend/Receive Money: (Read-only) View the list of money operations, (Full Access) view the list of money tasks, create and save new money operations (Spend Money, Receive Money, Transfer Money). Unapproved money tasks can be voided.
  • Approve Spend/Receive Money: Approve money tasks. The Complete button now appears in the top-right corner of the money tasks screen. Spend/Receive money permission must be granted with full access.

  • Undo: All of Spend/Receive Money, but can also Undo approved/completed money tasks. Spend/Receive money permission must be granted with full access.

  • Void: All of Spend/Receive Money, but can also Void approved/completed money tasks. Spend/Receive money permission must be granted with full access.

 

Expense Claims

Users can enter receipts for any spending they have incurred on behalf of the business and submit these receipts as an Expense Claim, accessed through Financials → Receipts. Approved users can authorize Expense Claims, accessed through Financials → Expense Claims. If you are using Xero, this function will not be available in Cin7 Core – expense claims are handled through Xero.

  • List & Tasks: Create and save expense claim receipts. View the list of expense claim receipts and submit them for approval. View the list and details of expense claims submitted for approval. View expense claim tasks assigned to you.

  • Approve: Void expense claim receipts. Approve or decline expense claim receipts. Authorize the total expense claim (so payment can be made to the submitter). Undo/Void expense claims. List & Tasks permission must be granted.

  • Create Payments: The Payments section of the expense claim detail page is now visible. If access is read-only, the user can view payments that have been made to reimburse the expense claim. With full access, the user can make payments to reimburse the expense claim.

  • Expense Items Reference Data: Allows you to view (read-only) and set pre-defined expense items to add to expense claims for faster submissions.

 

Opening Balances

Opening balances refer to the assets and liabilities your organisation has when you start using Cin7 Core to manage your inventory. Those using Xero/QuickBooks will need to enter balances from the Xero/QuickBooks system. Those using Cin7 Core without these accounting systems will need to enter balances from existing accounting records. Full access allows the user to change the opening balance conversion date and account balances, while read-only will simply allow the user to view what has already been entered.

Journal Tasks

Manual journals can be used for any transaction the accountant wishes to post directly to the General Ledger. You can add a manual journal to Cin7 Core, save it as a draft or authorize it for posting to the general ledger, and edit it if required. If you are using Xero as your accounting system, this function will not be available in Cin7 Core. In this case, you can manage your manual journals through your accounting system.

  • Journals - List & Tasks: Create, save and view journal tasks. View the list of journals.

  • Authorize: Authorize journal talks. List & Tasks permission must be granted.

  • Undo: All of Journal Tasks, but can also Undo approved/completed journal tasks. List & Tasks permission must be granted with full access.

  • Void: All of Journal Tasks, but can also Void approved/completed journal tasks. List & Tasks permission must be granted with full access.

 

There are also some user permissions under Settings that affect the financial module:

  • Financial – Chart of Accounts & Mapping: (Full Access) Add and edit accounts. Change account mapping. (Read-only) View the Chart of Accounts and Account Mapping configuration.

    • Note: If integrated with Xero/QuickBooks, accounts are created/edited from the accounting system and are read-only in Cin7 Core.

  • Financial – Taxation Rules: (Full Access) Create and edit tax rules. (Read-only) View existing tax rules.

  • Financial – Payment Terms: (Full Access) Create and edit payment terms. (Read-only) View existing payment terms.

Accounts and Chart of Accounts

The chart of accounts is the list of all accounts your organisation has available to record your transactions. Having the right chart of accounts is important for classifying your transactions correctly, keeping your accounts accurate and generating meaningful reports to help you run your business better.

Cin7 Core provides a default Chart of Accounts, but you can import a chart from your accounting system or your own custom chart. Make sure to consult with your accountant or bookkeeper before adding or editing any accounts.

Note: If you are using Xero or QuickBooks, accounts are created in your accounting system and then synchronised with Cin7 Core, where they appear in read-only mode. See our guides for QuickBooks Online or Xero if you are using them as your accounting system.

Learn more about Accounts and Chart of Accounts.

Bank Accounts

Add bank accounts and credit cards to be used as payment accounts in Cin7 Core.

Note: If you are using Xero or QuickBooks as your accounting system, bank accounts should be created in Xero/QuickBooks, then synced over to Cin7 Core. See Xero - Adding bank accounts or credit card accounts or QuickBooks - Online Banking Overview for more information about adding bank accounts to your accounting systems.

Learn more about Bank Accounts.

Managing Opening Balances

Opening balances refer to the assets and liabilities your organisation has when you start using Cin7 Core to manage your inventory. If you are currently using Xero or QuickBooks Online, which you will be integrating with Cin7 Core, then you will need to enter balances from the Xero/QuickBooks system. If you are using Cin7 Core without these accounting systems, you will need to enter balances from your existing accounting records. This is what we call conversion balances or opening balances. Entering opening balances only takes place once, during Cin7 Core setup.

Learn more about Managing Opening Balances.

Bank Reconciliation

After account transactions from your bank have been imported into Cin7 Core, you need to reconcile them to make sure that the transactions from your bank statement and the transactions in Cin7 Core match.

Note: If you are using Xero as your accounting system, this function will not be available in Cin7 Core. You can manage your bank reconciliation actions through your accounting system. If you are using QuickBooks Online, you can reconcile bank transactions within QuickBooks or Cin7 Core.

Learn more about Bank Reconciliation.

Receipts and Expenses Claims

Users can enter receipts for any spending they have incurred on behalf of the business and submit these receipts as an Expense Claim. Authorized users can view and approve Expense Claims using this feature.

Note: If you are using Xero as your accounting system, this function will not be available in Cin7 Core. You can manage your receipts and expense claims through your accounting system.

Learn more about Receipts and Expenses Claims.

Fixed Assets

The term fixed assets generally refers to the long-term assets, tangible assets used in a business that are classified as property, plant and equipment. Cin7 Core allows you to add new fixed assets to your inventory, register/unregister fixed assets and calculate depreciation for fixed assets.

Learn more about Fixed Assets.

Money Operations (Spend Money, Receive Money, Transfer Money)

These functions allow you to quickly input into Cin7 Core the money entering and leaving your bank accounts. You will have to reconcile your bank statements with each transaction in Cin7 Core.

Learn more about Money Operations.

Journals

Manual journals can be used for any transaction the accountant wishes to post directly to the General Ledger.

Learn more about Journals.

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