The following description of the Netvisor method can be used as a basis for the description of accounting methods. It is prepared at a general level, and the accounting entity must verify the adequacy and scope of the description. The basic description does not detail, for example, what kind of services and calculation rules have been implemented. Additionally, if financial management is handled with multiple systems, other systems and a description of how data transfer between systems is organized must be added to the description.
CONTENTS
- Overview of the Netvisor Financial Management Software
Overview of the Netvisor Financial Management Software
Visma Netvisor is a financial management software service offered as a cloud service, enabling individual companies or business clients through their accounting firm to access online financial management services in addition to electronic payment and invoicing. The service is accessible on all common browsers and devices. Logging into the service is always done securely through two-factor authentication.
Detailed technical description of the Netvisor service: Netvisor Service Technology and Security Description.
Overview of Financial Management
In the Netvisor service, there are no separate sub-ledgers; instead, the information is the same in real-time across different parts of the system. In the new Controller, which handles budgeting, forecasting, and broader reporting, data is updated from accounting information every night and whenever necessary through the interface update function. No data is transferred from the new Controller to the accounting side, so the accounting information is always real-time regardless. Netvisor can be used to varying extents, meaning that in addition to basic accounting, one can implement, for example, ledgers and other sales and purchase add-on services, inventory management, payroll, working hours and travel, as well as the aforementioned new Controller service.
Financial management material can be entirely in electronic form, or part of the accounting material can be in paper form. This overview of financial management describes the basic logic of Netvisor's operation. The method description should be customized for each company according to which service sections have been implemented, what kind of calculation rules are used, and how the system's automation capabilities are utilized. Additionally, the company-specific method description should be supplemented with any other systems related to financial management, such as possible pre-systems.
Basic Logic of Accounting Entries
In Netvisor, accounting entries are formed in different ways. Entries can be formed directly, for example, during sales invoicing according to the default account allocations entered behind the products, or the sales entry can be made manually as a journal entry. Similarly, the default account allocations for purchase invoices are generated during the inspection according to the supplier's information or according to the automation rules made.
Sales Entries
When a sales invoice is sent from Netvisor, an accounting entry is automatically created for the document type defined as default in the accounting settings (default ML Sales Invoice), and the sales invoice verifying the business transaction becomes the so-called source data for this entry, and it can be drilled down from the created document (document header information - Source section). Also, from the document's processing history, which is visible alongside the document in the interface, it can be verified how the document was formed and what possible changes have been made to the document afterward. Attachments can also be added to the document. The sales invoice also shows the payment transactions related to the event and their documents.
Purchase Entries
Similarly, based on the purchase invoice, an accounting entry is created for the document type defined as default (default OL Purchase Invoices), and the purchase invoice verifying the business transaction becomes the source for this entry. The document history shows the formation of the document and the changes made to the document, and through the purchase invoice, the purchase invoice information with payment details and accruals, as well as the invoice processing history and possible purchase invoice attachments, can be viewed.
Payroll Entries
Payroll entries can be created in the payroll process after the payroll slips have been paid. The creation of the document is done by the user. The document type is defined in the Payroll settings (default PA Payroll). The Payroll Slip Listing verifying the business transaction becomes the so-called source data for this entry, and it can be drilled down from the created document (document header information - Source section). Also, from the document's processing history, which is visible alongside the document in the interface, it can be verified how the document was formed and what possible changes have been made to the document afterward.
Entries from Travel Expenses
Similarly, entries from travel expenses are automatically created in accounting when the travel expense is paid directly and not with the payroll slip. Travel expenses are also recorded in the document type defined in the Payroll settings (default PA Payroll). The Travel Expense Listing verifying the business transaction becomes the so-called source data for this entry, and it can be drilled down from the created document (document header information - Source section). The travel expense listing also shows the travel time and attachments. Also, from the document's processing history, which is visible alongside the document in the interface, it can be verified how the document was formed and what possible changes have been made to the document afterward.
Entry and Automation Rules
Netvisor enables high automation in financial management by using default accounts, accrual rules, account allocation rules, and various automation rules.
Default accounts can be defined in different places. Default accounts can be defined through the products being sold, using which the sales transactions of this particular product are recorded. Similarly, for purchases, supplier-specific default account allocations can be saved. If default accounts are not specifically defined behind products or suppliers, the default accounts for sales and purchases are determined according to the general settings (from the menu Financial Management - Settings - Accounting Settings - Accounts Used in Default Allocations).
In the functions of sales and purchase invoices, there is an accrual functionality, which allows invoices to be accrued, for example, with a monthly equal distribution to allocate revenue or expense on an accrual basis to the correct periods. When accrual is done through a sales or purchase invoice, the accrual documents are linked to the respective invoice, and their account allocations can be seen from the invoice information. If, for example, a purchase invoice is accrued, the accrual documents related to the purchase invoice are visible from the purchase invoice information under "Accrual Documents," where there is a link to a list of documents related to the purchase invoice (purchase invoice document and all related accrual documents). Similarly, the accrual documents of the sales invoice are also visible. An automatic tracking item is also created for the accruals of sales and purchase invoices, and thus a list of made accruals is formed for the balance sheet specifications. Accrual tracking items can be viewed, for example, from the section Financial Statements: Accrual Tracking Items - Purchase and Accrual Tracking Items - Sales. Accruals can also be created using the accounting accrual tool (Financial Management - Accruals).
By using account allocation rules, the automatic processing of bank statement transactions can be increased. Account allocation rules can be created through the accounting settings and on the bank statement when recording a transaction with the Allocate function. The account allocation rules in use can be found in the Accounting Settings - Account Allocation Rules.
It is possible to set various conditions for purchase invoices, upon the fulfillment of which the actions defined in the rule are performed on the purchase invoice. Automation rules can be found under Purchases - Automatic Processing. From there, it can also be seen whether purchase invoice automation has been implemented for the respective company.
VAT Handling
Netvisor is based on the net entry method, where the accounting transaction always ends up as a net entry, and where VAT portions are recorded as separate transaction lines. In the manual entry of a new document, it is also possible to select the gross method as the VAT handling method. In this case, the system calculates the amount of tax according to the selected VAT rate, following the chosen input method. Automatically generated documents from the purchase and sales ledgers follow the net entry method for VAT.
In Netvisor, a VAT identifier and tax percentage are used for each transaction line. They guide the calculation and reporting of value-added tax. Based on the VAT identifier, the transaction is placed in the correct group in the VAT calculation and value-added tax declaration.
In the accounting chart of accounts, default VAT identifiers can be set for accounts, which are also used by the system's default allocation functions. The user can change the default VAT identifier as needed.
When a document is saved using the 'New Document' function, the system calculates the amount of VAT, converts the amounts entered as gross sums into net entries, and records the VAT amount to the VAT receivables or payables account. VAT entries are thus created immediately at the document saving stage. When the VAT calculation is created and the VAT entry is made, the system records the value-added taxes from the VAT receivables and payables account to the tax account.
Bank Statement Handling
In Netvisor, the received bank statement is processed by linking the received reference payments and their accounting documents, processing the paid purchase invoices and creating a document for them in accounting, and changing the ledger invoice status to paid. The created documents are linked to the bank statement transactions. In bank statement processing, account allocation rules can be utilized to allocate desired lines based on a rule created from the bank statement.
Document Types
In Netvisor, the following document types are used by default. In addition to these, users can add new document types to the system and freely name the standard document types.
ML Sales Invoice
MS Sales Payment
PT Bank
KT Cash
Pump Imported Transactions
T Automatic Financial Statement Entries
AT System Generated
MU Others
OL Purchase Invoice
OS Purchase Payment
JK Accruals
PL Payroll
Entry Chain
The entry chain is formed seamlessly in the system. More about the entirety of the accounting entry and document is explained in the section "Basic Logic of Accounting Entries." A document number is formed for the document, consisting of the document type and a running number. Business transaction verifying documents related to the entry, such as sales and purchase invoices, are firmly linked to the accounting entry. The source from which and based on what the entry was formed is always visible from the entry. Necessary clarifications can be attached to manually recorded documents, for example, as an attachment to the document. The same document number is visible on the daybook and general ledger, as well as on all other accounting reports. The account-specific income statement and balance sheet are formed from the same data as the income statement and balance sheet reports formed for the official financial statements. To document the entry chain also for income tax reporting, we recommend documenting the differences between accounting and taxation, for example, as an attachment to the fiscal year's tax accrual document.
Accounting Checks and Reconciliations
The system has a separate reconciliation view for reconciling accounting, where the company's bank accounts can be reconciled with the corresponding accounting bank account balance, as well as the sales and purchase ledger balances with the corresponding accounting account balances, and the inventory with the accounting inventory account balances.
The system also highlights various notices that may relate to different exceptional situations in invoice or payment traffic or notices of events that still require actions.
Integrations and Use of Software Interface
Various data can be imported into Netvisor using the software interface. Information about the use of the interface for each company can be found in the Netvisor Company Menu under Software Interface. Information about services that deviate from the standard basic service package in use can be found in the Netvisor Store.
Preservation of Accounting Material
All electronic material is permanently stored in the data center, from where it can be read in real-time. Backup is implemented by the data center service provider. Materials related to the financial statements are archived in the system on a fiscal year basis. Documents related to the fiscal year remain unchanged when the fiscal year's events are locked by closing the fiscal year. Sealing and archiving the financial statements in the fiscal year archive prevents the opening of the fiscal year. The customer can also order a copy of the material, which includes the company's financial management material.
Keywords: netvisor, accounting, VAT handling, account allocation rules, bank statement handling, automation rules
This article has been translated using an AI-based translation tool.
Did you find it helpful? Yes No
Send feedback