Financial Management in CargoWise Flashcards

In CargoWise, what is the purpose of a 'Local Client' on a financial transaction?

Answer: It identifies the branch that owns the revenue

The Local Client field identifies the branch or entity responsible for the revenue or cost on a transaction.

Which CargoWise feature allows you to automatically convert foreign currency invoices using a predefined exchange rate table?

Answer: Exchange Rate Maintenance

Exchange Rate Maintenance in CargoWise stores and applies predefined rates when converting foreign currency transactions.

What happens to a CargoWise creditor invoice when it is 'matched' to a purchase order?

Answer: It is linked to the PO for three-way matching validation

Matching a creditor invoice to a purchase order enables three-way matching between PO, receipt, and invoice before approval.

In CargoWise financial reporting, what does a negative balance on a debtor account typically indicate?

Answer: The company owes money or credit back to the debtor

A negative debtor balance indicates the company has a liability to the customer, such as from a credit note or overpayment.

Which CargoWise module is used to manage the company's chart of accounts?

Answer: General Ledger Maintenance

General Ledger Maintenance is where chart of accounts structure, account codes, and account types are configured.

How does CargoWise handle accrual accounting for unbilled shipment costs?

Answer: Estimated costs are posted as accruals and reversed when actual invoices are received

CargoWise supports accrual accounting by posting estimated cost accruals that are automatically reversed when the actual creditor invoice is entered.

What is the function of the 'Cost Centre' field in CargoWise financial transactions?

Answer: It allocates costs to a specific department or operational unit

Cost Centre allows financial transactions to be allocated to specific departments or business units for management reporting.