Chapter 3 “Getting Started on the Right Foot with CC3

 

This section is designed to get the bare essentials setup for CC3 so that your production side of the operation can start using CC3.  Be sure to work through all sections.  The following panel shows the MAIN MENU of CC3 which you’ll become very familiar with.

Note that in this case we have dropped our CCT logo into the software in the lower left corner.  The software is designed so you can drop your logo into the software, and your logo will then therefore brand all of  the documents you print out like Parts Orders and ROs.  As documents leave your building, you want to take every advantage to send your brand out into the world.  You’ll need a logo with similar horizonal retangular dimension if possible.  You’ll need it at a JPG file, and you call it logo.jpg.  Drop it into the f:\cc3 folder, and that is all there is to it.  If the logo does not immediately show on the software, go to Setup>Maintenance and in the Special Code slot enter “FIXIT”.

SETUP ADMIN XE "SETUP ADMIN" : GO TO Setup/Edit List

The next thing you should do, is to go into the SETUP/ADMIN and setup the company address, phone numbers, and etc.  Be sure to provide your Bank Name and Account #, or your Deposit Slips will not be properly generated.  You should also set your Cieca path this is estimates that are imported from your estimating system.  Set your estimate and RO # to the next estimate & RO # that CC3 will create.

 

You will also set up your website & email address here as well as your rates & starting estimate & Repair Order numbers.   DO NOT match estimate & Repair Order numbers to start, it just creates confusion.  Typically on a new system we start the estimate #s at 10,000 and the RO#s at 20000 .  Also, do not try and track the estimate or RO# here in the management system to the #s in your estimating system, let the #s in this system ride independently.

You can always go back and make adjustments here at a later date. 

 

ACCOUNTING XE "ACCOUNTING"  OVERVIEW & SETUP:

Next, it is very important that you understand the basic concepts that CC3 operates under before you dive in and get mired down with a lot of data that could be meaningless.  Study over this section and think about how the inner workings of CC3 can be utilized to improve your business.  CC3 is basically a full “double entry” accounting system designed specifically for the Body Shop Industry.  It maintains a “ JOURNAL”  when building reports.    Here’s a list of the major reports and where they come from:

Income Statement XE "Income Statement"  – from the Journal

Balance Sheet XE "Balance Sheet"  – from journal and chart of accounts

General Ledger Trial Balance XE "General Ledger Trial Balance"  – journal and chart of accounts

A/R Trial Balance XE "A/R Trial Balance"  – from a combination of the journal and the A/R Ledger

A/P XE "A/P"  Trial Balance – from a combination of the journal and the A/P Ledger

#57 Shop/Sales Tax Report XE "#57 Shop/Sales Tax Report"  – From the archived ROs file

#51 Work In Process XE "Work In Process"  Report – From the Open and closed ROs

Bank Account Activity XE "Bank Account Activity"  – from the Journal

IF YOU ARE NOT FLUENT WITH ACCOUNTING, GET HELP FROM YOUR ACCOUNTANT OR PLAN ON PURCHASING A LITTLE EXTRA TRAINING FROM YOUR CCT REPRESENTATIVE.

Now, let’s move on to getting CC3 ready to use.

Basic  “Accounting XE "Accounting"  101” provides a recommended framework to build upon for setting up accounting systems.  CC3 embraces this concept as you will see by our Accounting Categories.  ASSETS = 100s,  LIABILITY = 200s,   EQUITY = 300s, SALES/INCOME = 400s,   COST of GOODS = 500s,  SHOP EXPENSES = 600s,  and OTHER = 700s.   No, this does not mean that you have only one account for each of the Accounting Categories, it merely means that all, say Income Accounts should fall into the 400 series.  An Account Number can be up to 5 digits long, but is grouped by the 1st digit.  We recommend 3 or 4 digit Account Numbers for simplicity but you can use 5 digit account #’s.

 

From the Main Menu go to the Setup Option in the lower right hand corner, and in there choose the (A)ccounting button.  You’ll then be looking at this:

 

 

 

 

 

 

 

 

There are two basic methods of getting data into CC3.  The first method and possibly the best, is to manually input the data once you have your Chart of Accounts set up. The other is to utilize the data conversion utility. 

Manual Data Entry XE "Manual Data Entry"

It’s time to decide on your Chart of Accounts XE "Chart of Accounts" .  CC3 comes pre-loaded with a Basic Chart of Accounts and can be used or you can create your own.  You should now create or modify the Chart of Accounts to meet your needs.  Unless you’re really up on accounting, we’d recommend that you get some professional help in establishing your Chart of Accounts.  Make a list and double check the accounts; once satisfied, proceed to the next step.

Go into the “General Ledger” button off the Main Menu and enter your Chart of Accounts.  You do this by (S) Set up Accts (E) Edit desired Account section.

   

 

 

 

 

To edit an existing account, use “PageUp” or “PageDown” to display the desired account to edit and press “E” to edit the box will let you have access for editing.

 

To add a new account, press “A” to add an account.  Enter the Account Number and Account Name; then press “ENTER” and then “ENTER” again to save the newly entered account.  Repeat this process to setup each account in each of the accounting areas.  Note that to the right of the account description field is a 2 digit space.  If you enter 99 in that space, the account you have entered is a subtotalling account on the income statement.  Specifically it is an account that you cannot post to, but will separate itself out on the detailed income statement, run when you run the balance sheet, and subtotal amounts on top of it.  A good example is breaking out COGS labor from COGS material.

Now print out the Chart of Accounts.  Once again carefully review your Chart of Accounts XE "Chart of Accounts"  and make changes as needed.  A little careful planning here will really make you job much easier later. 

One more check prior to starting to input data.  ---With your Chart of Accounts in hand, go into the SETUP ACCOUNTING XE "SETUP ACCOUNTING"  screen we talked about a few pages back and enter or change the accounts numbers shown to match your Chart of Accounts.  (Note:  The account names are not changeable, so you may have to go back into your Chart of Accounts and modify your Account Names to match these.)  These are what could be called your “automatic accounts”, meaning that certain areas of the program look to this area to see where to automatically move money.

 

Here’s a brief explanation of the various accounts shown in the SETUP ACCOUNTING.  You need to set up these accounts accurately for the CC3 Accounting to work properly:

Check Book #1 XE "Check Book #1" :  This is your main money account.  Money is moved into this account each time you close out the Envelope Account.  Money may also be moved into this account via a Journal Entry debiting this account # and crediting another account.  This is an asset account.

Check Book #2 XE "Check Book #2" :  This is really designed as a “Credit Card Account XE "Credit Card Account" ”.  When you close out the credit card side of the Envelope Account, the “Credit Card Charges” are posted to this account.  If you do not use a separate “Credit Card Account”, then merely enter the same account number here to make sure your “Credit Card Charges get posted into your main checking account.  In most shops, in most cases, check book #1 & #2 are the same account #.

Accounts Receivable XE "Accounts Receivable"  Account:  When you close out a job and have an outstanding balance due, this is the account where these totals are accumulated.  It is an asset account.

Accounts Payable XE "Accounts Payable"  XE "Accounts Payable"  Account:  This is the account where your “payable” accumulate prior to being paid and posting to the Journal.  It is a liability account

Sales Tax Liability XE "Sales Tax Liability" :  This is the account that accumulates the Sales Tax Liability from closed jobs.

Employee FICA/Med Costs:  This is the account where your FICA/Med Costs are accumulated. 

Federal Tax Liability XE "Federal Tax Liability" :  This account is the accumulated Fed. Tax Liability.

State Tax Liability:  This account is the accumulated State Tax Liability.

SDI:  Stands for “State Disability Insurance.”

General Revenue Account:  This is a temporary holding account that accumulates money when a job is closed.  It debits the Bank Account and holds the money here until dispersed through the 59 Month report.

Customer Deposit XE "Customer Deposit"  Account:  This is where Customer Deposits are held until the job is closed and then the money is moved to the General Revenue Account until dispersed.  This account can be either a 100 or 200 series account; it just depends on how you want to look at it.

Envelope Account/Deposit Account:  This is a holding account where daily money, cash, check, credit card moneys are accumulated.  This account is cleared daily through making your deposit and Zapping the account.

Returns & Allowances Account XE "Returns & Allowances Account" :  This is the default area that accumulates Returns & Allowances.  This area is fed when you write off a receivable amount.  However, you can manually send returns and allowances against any account desired.

Vendor Discounts:  When you go to pay an invoice and take a payment discount, this is where that amount is accumulated.

Employee Advance:  This “reserved account” will likely be removed.  This function can be handles in a non-reserved account, meaning you’d make entries via a journal entry.

Mechanical Company Sales:  This accumulates sales from a separate in-house Mechanical Shop.

Labor Accumulated Liability Account:  When you ZAP the WORKER TIME REPORT, this is the accumulation of the labor liability created via that report.

Labor Work In Process XE "Labor Work In Process"  XE "Work In Process"  Account:  Utilized to store “labor” dollars.

Items Work In Process XE "Items Work In Process"  XE "Work In Process"  Account:  Utilized to store “items” dollars.

Bank Balance Account:  This is where you enter your beginning bank balance and can check your current balance at any time.

Current Period Earnings Account:  This is the account where the current period earnings are stored.  Current Period Earnings are generated when you run the balance sheet and is automatically posted to the account through that process.

The rest of the accounts deal with “Departmental” breakout of Sales and Costs.  We recommend that you follow the relationship as shown.  You can change the numbers to match your Chart of Accounts; however it might be easier to change your Chart of Accounts to match these.

The only thing left on this screen is the “MarkUp” column.  This is where you enter your desired mark up.  This is what sets the flags to warn you if you fall below these pre-set goals.  In the Jobcost Window, if profit falls below this preset Markup, a star flashes.

Balance Sheet Amount Entry XE "Balance Sheet Amount Entry"  XE "Balance Sheet Amount Entry"

If you’re satisfied with the Chart of Accounts, you should print it out from MainMenu>General Ledger>SetupAccounts.  Once satisfied with your Chart of Accounts and with the Setup Accounting, you should then enter your startup balances into your Chart of Accounts.   You do this by going into the General Ledger (S) etup Accts and selecting the Account Category, then PgDn or PgUp to display any desired ACCT.  It is very important that you enter and verify the starting (ending) balances in each of these accounts from your old system.  (NOTE:  If starting to use CC3 in say July, you should enter your closing balances into June.  CC3 calculates and enters closing balances for the month, not starting balances.)  If an ACCT needs modification, then press “E” to edit the screen.  Using this method, you’ll enter all your starting reference numbers into each account. You’ll also want to enter your current Bank Balance through the SETUP ACCOUNTING screen.

 

NOTE:  You print the balance sheet from the Main Menu, Income Statement option.  There is a CALCULATE BALANCE SHEET T/F button there.  This feature is there just for when you add a new chart of accounts.  You do not want it to calculate when you want to check the balance sheet you just entered.  After the setup, and whenever “Balance Sheet” is run,  the system will take the previous months account balances, add and subtract the activity in the journal for each of those accounts to those previous months account balances, and therefore deduct the ending balances for that month, and publish those as that months balance sheet.  So,when you enter a new balance sheet you need to print that balance sheet without calculating.  The example above references June as the month you entered the balance sheet in, so you would run June, NOT calculated.  If you make the mistake of running June calculated, then it will start with May’s numbers, which are 0s, and add June journal to them, which are probably 0s, and then write 0s over all the numbers and hardwork you just entered in the June slots.  So don’t make that mistake.

 

Your Accounting side of CC3 should now be ready to start using; however you still need to get the front end of CC3 setup properly before beginning to write and process estimates and repair orders.

 

 

SETUP /EDIT LIST XE "SETUP /EDIT LIST"  – a necessary & sometimes aggravating part of the program

This part of the program was difficult for us to write because it slows down the user.  But, we found that literally every single body shop owner want to know certain exact information about where his business was coming from, who in the shop was dealing with it, and which insurance company’s were paying the shop money.  So, the only way to collect and capture that information was throught the RO header screen where the data could be validated against a popup list and popup vendor list.  Specifically, you cannot exit the header screen of an RO unless the Shop Writer’s name is on the head code list, the insurance company is on the vendor list, and the Source is on the head code list.  This prevents you from typing “Allstate Insurance Co.” on one RO, and “Allstate Insurance Co. Inc.” on another RO, and just “Allstate” on another RO.  If you were allowed to do that, your end of month profit analysis and cycle time reports would be all screwed up because you would have 3 titles for the same insurance company.  The same is true for writer that is spelled “Bill”, “Billy”, and “Bill Jones”.  So what happens is that “Allstate Insurance Co.” must be entered on the Vendor list, and “Bill Jones” must be entered on the Popups list.  You can save yourself a little aggravation here by adding “UNKNOWN” to the popup list, and “Customer Pay” to the Vendor list, so if your writer just doesn’t know the source say, he can identify it as such “UNKNOWN”, and not just plug some useless information so he can get through his day.  “UNKNOWN” spelled just like this is also important when an estimate overwrites an RO, if the RO field has the word “UNKNOWN”, the system will allow the estimate information to overwrite the RO information for that field.  So, if you have opened an RO not knowing who the car belongs to, to say post a tow bill to, and you write the estimate after the fact, when that estimate is overwritten on top of the RO, you want it to populate the RO with the insurance company, writer, source, and customer name from the estimate you are bridging in.  In all 4 of these cases “UNKNOWN” will do that.  So add “UNKNOWN” to the Vendor list with the “I” for insurance Code, and add “UNKNOWN” to the popup list as well.

 

Select Setup Popups XE "Setup Popups"

 

 

The SETUP/VENDOR XE "SETUP/VENDOR"  area is the screen where you not only setup your Vendor Codes; but likewise your Insurance Companies.  While the Vendor’s can be setup on the fly via the “Popup” new vendor window, we recommend that management setup the initial Vendor List.  Be sure to enter the proper Vendor ACCT # for invoices posted against that vendor.    i.e. A parts vendor will normally be a 551. When the user chooses this vendor in the Post Invoice screen, the account # will be pre-loaded with that account #.   It is also useful to enter the expected discount for each Vendor.  ---As to the Insurance side of this area, we also recommend that Management set these codes up and provide the Estimators with a list of codes.  This precludes having i.e. State Farm Insurance showing up with 15 different spellings and spacing.  Later when Analysis Reports are generated, you’ll not have a clear picture because each derivation will be treated as a separate insurance company.   (When entering Vendors or Insurance Companies, be sure to put an “I” in the second field.)  This allows the system to display only the Insurance Companies when you hit the popup box from the insurance company field in the header of the RO, and exclude the Insurance Companies from the list of vendors that pops up when posting invoices.

 

We’re now ready to tackle setting up Vendor Codes; highlight SETUP/VENDOR From the SET UP/LIST screen and “click or press ENTER”.

 

 

 

A VENDOR code may be any combination of up to three (3) alpha/numeric characters.

There is a single field that is often overlooked right after the Vendor Code; this field is to differentiate between a Vendor and an Insurance Company since they both reside in the same database.  If you’re entering a Vendor, then place a “V” in this space; or for an Insurance Company, place an “I” in this space.

As with the other SETUP Screens, the options are listed across the bottom and we only need to discuss the two new ones.  You can now change the way they are listed by Sorting on Name rather than code and you can print the Vendor List.

As you can readily see, you need to supply a good deal of information about your Vendors; but taking the time to accurately enter your Vendors will save lots of time later on.  When finished with the VENDOR CODES, “press ESC” to return to the MAIN MENU.

 

SHORT CODES XE "SHORT CODES"  are codes that you can access in the lines of the estimate or RO that allow you to save type typing repetitive phrases like “Frame Rack Setup” or “Evacuate and Recharge”.  In here you could create a code like “FRS” for Frame Rack Setup, so that when you are then in the lines of an RO, you need just type FRS and hit Enter, and that phrase will pop right into the line.

SECURITY XE "SECURITY"  allows you to setup codes to keep certain people out of the certain areas that you don’t want them to access.  Check the screen for the passwords and the areas that the specific passwords cover.  The basic idea of the security scheme is that the Master Password allows you to do everything, including “bad” things like delete a line out of the journal, delete/edit a closed RO, or delete/edit an A/R ledger entry.  All the other passwords merely grant access to certain areas or functions.  So, you should protect the master password, and more liberally grant access to the other passwords.  So here’s the theory and example – you may grant a particular employee access to the A/R ledger, where they could say write off a receivable, but you would never want to grant them access to the A/R ledger, with access to be able to delete an A/R.  Writing off a receivable leaves an audit trail in the journal – a “crime” you couldn’t get away with because you should be reviewing writeoffs at the end of the month by running a journal filtered to debits to Returns and Allowances account.  On the other hand, while we’re this deep into it, you could catch a deletion to the A/R ledger using the A/R Trial report.  Here’s a more simple, and practical example of the master password.  A guy closes an RO on the 2nd of the new month, and then says “gee, I wanted that included in last months shop report 56/57/59”.  So he’s sorta smart but doesn’t really care about the bookkeeping issues, just trying to make his numbers look good.  If he has the master password, he edits the closed RO closed Date, and makes it the 30th of the previous month – now his shop report, which runs from the closed ROs file, looks “great”, unfortunately, the journal has a journal entry of when that RO closed on the 2nd, and now the journal (and income statement) are out of whack with the closed ROs (and 56/57/59) shop reports.  So you see in this case the master password protects us from hurting ourselves.  Incidently, if you really did need to move it from the 2nd to the 30th, you would also need to edit the entries in the journal and the A/R ledger, and then that would be the correct and audited way to move that closed RO from one date to another.  Last thing, you need the master password to change the Lock Date, and the Lock Date keeps transactions in a 60 day window so that you can’t hide or accidently post a transaction to 1905 instead of 2005.  There is more on the Lock Date in another part of this manual, access the index in the back for that.

 

SET UP WORKERS XE "SET UP WORKERS" .  This area is easy to follow.  You first setup the worker’s initials or numeric code, then set the pay rate for each of the areas they might be paid in as set whether its an hourly rate or commission.  You can also set their default labor type, i.e. Body, Paint, etc.

 

 

We’re almost through with these Setup screens, but we’d better put in some Workers, so highlight Setup/ Edit Lists pick SET UP WORKERS and “press click or ENTER”.

This screen looks a little different, but basically the top left box displays a list of worker codes followed by their full names.  When a particular Worker is highlighted, their respective Wage Rate Screen is showing.  As you will note, a single employee could have a different wage or commission rate for each different category of work.  As with the other Code Screens, CC3 can handle thousands of Workers, but to keep things manageable, you’re encourage to delete and clear out old employees. When finished with the WORKER CODES, “press ESC” to return to the MAIN MENU.  The H/C code means Hourly or Commission, so if the employee is 40% commission, you would enter “40” for the rate and a “C” to the right of the 40.   Commission is a function of the rate on the RO itself.  So if 1 RO has a rate of $30, and another $36 an hour, the Commissioned guy would make $12 and $14.40 repectively.  On the far right is Default which is the labor group the individual defaults to.  If the person is a body man, enter a ‘B’.  Alignment specialist ‘M’, Painter ‘P’.  This is a convenience only making posting of hours slightly quicker.  In lower left corner is the additional exp % which can tack on additional expense to the RO’s jobcostingxe "jobcosting" to better see the true cost of the time posted.  Specifically a $10 an hour employee probably really costs your shop $13.50 after labor tax, insurance, and worker comp.  If this case you would enter a 35 to add an additional 35% to the cost.  Obviously, this additional cost is not posted through to the worker time report.  The worker time report is what you actually pay the tech, and you will hand him a copy of that report at the end of the payroll period.