The primary method of recording business transactions in accounting is entering program documents that correspond to primary accounting documents. In addition, direct entry of individual journal entries is also allowed.

The program logic is document-based. Primary documents confirm the execution of a business transaction that must be reflected in accounting records. Accordingly, the program provides documents for all main types of operations. In exceptional cases, the “Manual Operation” document can be used — an analogue of a memorial order or an accounting memo.

Accounting for goods, materials, and finished products is implemented. The following methods for valuing inventory upon disposal are supported:

• at average cost;

• at the cost of the first items acquired (FIFO method).

To support the FIFO valuation method, batch (lot-based) accounting is maintained on inventory accounts. Different valuation methods may be applied independently for each organization.

Warehouse accounting can be maintained either in quantities only or in quantities and amounts. In the first case, the valuation of goods and materials for accounting and tax purposes does not depend on the warehouse from which they are issued. Warehouse accounting can be disabled if it is not required.

The information base allows recording inventory results, which are automatically reconciled with accounting data. Based on the inventory results, surplus items are recognized and shortages are written off.

Additional services can be included in the cost of purchased goods by allocating their cost across all items in the selected purchase document.

Accounting for the receipt and sale of goods and services is automated. When goods are sold, outgoing documents are issued. The cost of goods sold is written off using the selected method: FIFO or weighted average.

The recording of goods returns from customers is also automated.

Enables accounting for advance invoices (both received and issued) from the moment of their registration, with the ability to use the data for creating payment documents and analyzing payments on issued invoices.

Based on an “Advance Invoice,” you can use the “Create on the basis of” button to generate a “Goods and Services Receipt” document for received invoices and a “Goods and Services Sale” document for issued invoices.

Automated accounting of Value Added Tax (VAT) in accordance with the tax legislation of the Republic of Estonia. For VAT accounting purposes, transactions are tracked separately according to different VAT rates and those exempt from taxation. The system allows for reverse VAT accounting for intra-EU transactions and for special accounting procedures (e.g., metal trading).

With the ability to modify the chart of accounts and analytics, VAT accounting can be configured for different countries within the same company.

It is possible to select the company’s VAT number under which a transaction is registered.

The program allows exporting and submitting KMD reports (including appendices A and B) and VD reports to the Estonian Tax and Customs Board (e-Maksuamet).

Accounting for cash and cashless transactions as well as foreign currency operations is implemented. The system supports bank input of payment orders and receipts, as well as incoming and outgoing cash orders in both domestic and foreign currencies.

Cash documents are used to generate the cash book.

Operations with suppliers, customers, and accountable persons, as well as purchase, sale, and conversion of foreign currency, are automated.

A mechanism for exporting payment orders to banking systems is implemented.

Analytical accounting is maintained on the accounts with counterparties, broken down by counterparties and settlement documents. Automatic offsetting of advances in receipt and sales documents is supported.

Accounts with suppliers and customers can be maintained in EUR and other currencies. Exchange rate differences for each transaction are calculated automatically.

The main operations for accounting of fixed assets (tangible and intangible) are automated: acquisition, capitalization, depreciation calculation, modernization, revaluation, transfer, disposal, and inventory.

Accounting of production operations is possible through the “Assembly” document.

The configuration manages payroll and personnel accounting. It provides the generation of printed forms for HR records.

The following operations are automated:

• Work schedule — planned and actual;

• Payroll calculation for employees based on salary or hourly rate, with the ability to specify how each type of payment is recorded in the accounting separately;

• Accounting for deductions;

• Settlements with employees;

• Calculation of statutory taxes and contributions based on employees’ salaries;

• Generation of relevant reports;

• Submission of reports to the electronic system of the Estonian Tax and Customs Board (e-Maksuamet).

Calculations take into account whether the employee is a resident or non-resident, and their pension status.

Automated month-end closing operations include:

• Currency revaluation;

• Write-off of prepaid expenses;

• Depreciation of fixed assets.

The configuration provides the user with a set of standard reports that allow analyzing data on balances, account turnovers, and transactions in various dimensions. When generating reports, it is possible to configure grouping, filtering, and sorting of the information displayed, based on the specifics of the organization’s activities and the user’s functions.

The program includes the following statutory (legally required) reports:

• Balance Sheet

• Profit and Loss Statement

• KMD (including INF A, INF B)

• VD

• TSD (lisa 1, lisa 2)

The program also includes the following service features:

• Full-text data search – searching for any text across all configuration objects (documents, directories, etc.);

• Import of exchange rates from the European Central Bank;

• Export of payment orders to online banking;

• Verification of counterparties in the business register;

• Automatic checking and installation of updates for “1C:Accounting 8 for Estonia” via the Internet;

• Export of statutory reports to the electronic declaration system;

• And more.