General Ledger System Overview


The purpose of this module is to create the financial statements for all sets of books on the system. To do this, the G/L System accepts the financial transactions from the modules during their month-end process and posts the transactions to the financial records of each set of books. The General Ledger System provides the widest range of formats for financial reports, and even provides the ability to consolidate set of books or accounts within a set of books.

To provide the widest possible latitude in the generation of financial statements for all clients, the General Ledger System provides a number of different charts of account, designed for different types of client organizations. Using the established charts saves a great deal of time in setting up a client set of books. In addition to ease in setting up general ledger accounts, the General Ledger System also allows budget amounts to be added to each G/L account record. This will allow reports to be printed comparing actual expenses to budgeted amounts.

Ooe of the benefits of this software product is users do not need to know "double entry" accounting. This means when an user creates a transaction (through a/r, a/p, payroll, etc) they only have to enter one (1) g/l account# to allocate the income or expense. The other side of the accounting entry will be posted automatically by the system. This other posting comes from the "Critical Accounts Table" maintained in file 'TABLES,SYSTBL' with an Id of 'CRITICAL.ACCTS'. This table is maintained using the G/L utility menu# 5.6.3. Because of this table, all charts of account must have certain account#s in common like 'Cash', 'Accounts Receivable', 'Accounts Payable', etc. There is initially installed 28 Critical Accounts.

The General Ledger System also controls the postings for the Bank Account System, and as part of the G/L month-end process, prints the Bank Account Transactions Reports, essentially the system's monthly bank account statement, to which the bank actual statement is reconciled.

Chart of Accounts Maintenance

This process allows the easy maintenance, and addition, of individual accounts for any Client. The ability to delete a record is limited, if any transactions have occured and posted to the account. Each account is assigned a specific major classification (asset, liability, etc) and a specific minor classification (current assets, general operating expense, etc).

Each account can be consolidated into another account for financial statement reporting. This provides the ability to provide detailed account information for management reports and more general consolidated account information for investor reports.

Post Manual Journal Entries

Most financial transactions within the system are posted through the modules, and do not require any entries on the part of Operators; however, from time to time, it is necessary to manually post entries. The General Ledger System is designed to allow this to be done easily through the Manual Journal Entries program. Items typically entered in this fashion are interest amounts posted to bank accounts each month, bank service charges, funds transfers and various corrections of improperly processed transactions. Manual journal entries can also be required by accounting supervisors to bring a set of books in line with auditors opinions, by writing off assets or making other adjustments.

You may also review all postings detail for any G/L account number for any or all months within the last 12 months, except the current month. The current month's postings are printed out during the month-end process, then, after the update, included in the detailed records.

Budget Maintenance

Budget information is usually used to review projected operating results and to compare actual results to the projected results. This process allows the direct input of 12 months of budget information for any period. This information is retained and updated until final budget approval; whereupon, the data is updated to the financial transaction records. You may keep the budget data on file or may delete it; whatever you wish.

Financial Reports

The widest range of formats for various financial reports are included, and additional formats can be designed with the assistance of your Customer Service Representative. The selections includes the expected Income Statements, Cash Flow Reports, and Balance Sheets as well as many others.

Miscellaneous Utilities

Various miscellaneous processes are available, including the ability to create a complete chart of accounts for any selected client, and the ability to maintain the Critical Account Table utilized by all modules. In addition, there is a utility which allows you to transfer budget numbers from your spreadsheet directly into each account record, saving manual input time.

End Of Month Processes

The month-end process in the General Ledger System is the culmination of all the work performed in the modules throughout the month. Like the other modules, G/L has its own checklist, which provides ample opportunity to review and check for errors before the actual update is completed. Since the entire process is designed to provide accurate financial statements and financial reports, it is critical all corrections are processed before the G/L System update. Once this occurs, no corrections are possible.

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