GLMENU General Ledger Package Overview

Overview

Package Overview

How To Use This Manual

 When most people receive a new product, they want to use it right away.  Unfortunately, this is not quite possible when dealing with computer hardware and software.  This manual is intended to serve as a reference guide in describing the functionality and the application of the General Ledger package. 

The first few sections of this manual are intended to introduce the user to the General Ledger (G/L) system and help get started.  The latter sections are for reference when the user has specific questions about each of the General Ledger applications.  These applications are described later in this section under G/L Menu Bar Selections and Definitions.

It is suggested that the user first read the System Manager manual.  The Package Overview section of this manual gives an overview of the General Ledger package.  The General Operator Instructions in the System Manager manual explains how to enter and edit data and the use of special keys on the keyboard.  The Startup section gives step‑by‑step instructions on how to load the programs, create the data files, and enter the initial data.  The Processing Procedures section gives direction in daily, period and year ending procedures.

The user should then scan each of the G/L sections to understand how each of the G/L applications work. A very basic description of each of these applications is also contained under the heading G/L Menu Bar Selections and Definitions that is part of this Package Overview.

Data Load Sheets are included in this manual under many of the applications.  These sheets may be used to manually fill out the data that must be entered at the computer.  They may be helpful in easing data entry.

Sample screens and reports are also included under each of the appropriate G/L applications.  These are a guide to show the user the type of screens and reports that may be obtained from the system.

 

G/L Menu Bar Selections And Definitions

 The General Ledger package is aimed at producing Financial Statements, primarily the Balance Sheet and the Profit and Loss Statement.  In addition, a number of Supporting Schedules can be produced for both the Balance Sheet and Profit and Loss Statement.  A supporting Schedule is a more detailed report of a section of either the Balance Sheet or the Profit and Loss Statement.  For example, the Schedule of Operating Expenses gives a detailed breakdown of types of operating expenses, while the Profit and Loss Statement may only show one consolidated amount for Operating Expenses.

 Additional financial statements that can be produced are the Sources and Applications of Funds (SAF) reports:  Changes in Financial Position, Components of Working Capital, and Statement of Cash Flows.

 The General Ledger package consists of a number of applications, each of which is necessary to carry out a G/L function towards producing the financial statements.

 The functions carried out by the G/L applications are as follows:

 

Maintenance

     Accounting Period File

 Allows you to define and change the accounting periods of your fiscal year and to define the current accounting period.

 G/L Account File

 Allows you to set up and maintain the Chart of Accounts. 

 Distribution Code File

 Allows you to define a number of automatic distributions that can be made to several accounts in one transaction.

 Financial Entity File

 Allows you to define financial entities of ranges of profit center/department numbers.  Financial Statements and cost reports can then be printed for individual financial entities.

 Statement Text File

 Allows you to set up and main­tain files of text that can be used in printing financial state­ments.

 Statement Layout File

 Allows you to define and maintain layouts (that is, formats) for financial statements.

 Budget File

 Allows you to maintain budgets for multiple years associated by account number and revision code.

 Comparative File

 This application controls multiple years comparative figures by account number.

 Source File

 Allows you to maintain a file of currently used source codes for easy access in General Journal Transaction Processing and Recurring Journal Transaction Processing.

 

Inquiry

   General Ledger Account

 Allows you to view the General Ledger file and the journal entries that have been posted to the Ledger.

 G/L Account File

 Allows you to view the account file.

 

Processing

    General Journal Trx Processing

 Allows you to enter transactions (trx) to the General Journal.

Recurring Journal Trx Processing

 Allows you to enter transactions that recur from month to month, either with a fixed amount or variable amount.

 Post General Journal Trx

 This will post the journal entries to the ledger.

 Post Recurring Journal Trx

 This will post the recurring journal entries to the ledger.

 Interface from Other Packages

 Allows you to transfer data directly from the Distribution file in the A/R, A/P, A/D, PR, I/M or J/C package to the General Journal Transaction file.  You may also transfer data from a properly prepared ASCII file.  For more information on ASCII Interface and File Layouts, cosult the Elliott Developer Reference manual.

 Compress General Ledger Trx File

 Compresses the transactions in the General Ledger Transaction (Trx) file either to one combined trans­action for each date, or for each period, or for each source within a date, or for each source within a period.

 Year‑End Procedure

 Performs the temporary or final year closing functions of advancing the period dates to a new fiscal year, readies the  Balance  Sheet  accounts  for  the  new  year  with balances brought forward and clears the Revenue and Expense accounts.  It will also create a retained earnings transaction for the year.

 Company Consolidation

 Allows you to consolidate multiple company G/L transactions into one main company.

 Note: This selection is only applicable if Multi Company is in use.

Recalculate Account Balances

 This will read through the General Ledger Trx file and recalculate the period’s start and ending values.

 Select and Print Financial Statements

 Allows you to enter and maintain specifications that define what financial statements will be printed (if selected) and also select the statements to be printed on the next print run. It also prints the financial statements.

 General Ledger Worksheet

 Allows you to print the General Ledger Worksheet so that you can enter adjustments to accounts and obtain an adjusted Trial Balance.

 

Reports

    Trial Balance Report

 Allows you to print a Trial Bal­ance showing all debit and credit transactions for all accounts in either detail or summary form.

 Journal History Report

 Allows you to print a report that shows the batch posting totals from other packages that interface to G/L. Also Provides a net change management report.

 Source Cross Reference Report

 Allows you to print a report that groups the transactions by source code.

 Period Account Balance Report

 Prints a report detailing your account balances.

 Financial Ratio Report

 Allows you to print reports on a number of ratios for a period.

 

 

Util setup

   G/L Setup

 Allows you to tailor the General Ledger Package to the way you do accounting in your company.

 Print Spooled Reports

 Allows you to display or print reports that were generated in the General Ledger package.

 


Some General Ledger Concepts And Terms

 For those who may not have much background in accounting, a simplified description of general ledger accounting is first given.

An account is one category of the records kept by a business; for example, all records concerning expenses for utilities could be recorded in a Utilities Expense account.

 Bookkeeping is the technology of keeping records; more accurately, it is the technology of keeping the financial records of a business concern.  Accounting, a somewhat broader activity, deals with the presentation of these records in a usable form, and with organizing methods of record keeping, and with the preparation and interpretation of summarized reports.

 An enterprise is a business activity owned and operated by one or more people, usually with profit‑making in mind.

 Anything owned by the enterprise that has exchange value is called an Asset.  Typical assets are cash in the bank or inventory in stock.  Less obvious assets are amounts of money owed to the enterprise; these amounts are assets because they can be converted to real money.  An important class of assets of this type is called Accounts Receivable, which are customers' promises in writing to pay (in a short period of time, say thirty days) for goods received.  Other assets are real estate, office furniture, buildings, etc., owned by the enterprise.

 A distinction is usually made between current assets and fixed assets.  Some current (short‑term) assets include cash, accounts receivable, prepaid expenses, supplies or equipment, and inventory.  Current assets may be used up or replaced in a relatively short time (one year or less).

 Fixed assets (or long‑term assets) include real estate, land, buildings, and major equipment.  When making reports (financial state­ments), one usually classifies fixed and current assets separately.

 Equity is an old word coming from the same root as equal, and generally denotes a person's right to fair settlement of a claim.  In accounting, equity refers to different people's claims on the assets of an enterprise.

 Two different parties have rights to the assets of the enterprise; the owners and the creditors.  Everyone the enterprise owes money to has a claim on its assets equal to the amount owed to them.  The owners claim the rest.

 Thus, the most basic rule of accounting should be as follows:

 

                    TOTAL ASSETS = TOTAL EQUITY

 (Note that the equals sign means "has the same value as," and not "is identical to.")

 Creditors' equity is given the name liabilities.  Liabilities are all claims by creditors on the enterprise.  This includes IOUs, loans, wages to be paid, and even undelivered goods.  One important liability is goods received by the enterprise for a promise to pay at a later date.  This type of liability is called Accounts Payable.

 The rest of the equity is claimed by the owners, and is called Owner's Equity.  Owner's Equity is commonly abbreviated to Equity.

 All the money that is left over after the creditors take their share (liabilities) is claimed by the owners.  Any profit from sales is recorded as equity.  Since stockholders in a corporation are owners, the stock of the company is Owner's Equity.

 Since the assets of an enterprise are claimed by the owners and the creditors and none other, the basic accounting equation can be written more accurately as follows:

 

                    ASSETS = LIABILITIES + OWNER'S EQUITY

 Understanding this equation is the key to understanding accounting.

 From time to time, an accountant totals up all assets, liabilities, and equity of the company and prepares a report called a Balance Sheet.

 The Balance Sheet typically shows all the assets on one side and all the liabilities and equity on the other side, with the total of the left side equaling the total of the right side.

 Here is a typical (although simple) Balance Sheet:

 

Assets:                                                              Liabilities:

Cash                                     $10,000.00             Accts. Payable                     $3,000.00

Accts. Receivable                      5,000.00             Long-term Loan                       8,000.00

Inventory                                  1,000.00             Total Liab.                           $11,000.00

Equipment                                 2,000.00

Land                                        20,000.00             Owner's Equity:

                                                                         Net Profit                             20,000.00

                                                                         Stock                                    7,000.00

                                                                         Total Owner's

                                                                         Equity                                $27,000.00

                      __________                     ___________

                                                                         Total Liab. &

Total Assets                           $38,000.00             Equity                                $38,000.00

 

 The Balance Sheet presents the financial state of the enterprise at a given date.  When it is correct, it always balances.  A Transaction is an event (expressed in dollars) that affects the financial condition of an enterprise.  Any time money changes hands, or even when something of value changes status within the enterprise, a transaction is recorded.  An example of the latter type of transaction is the transfer of money from the enterprise's bank account to a Petty Cash pool.

 An entry is a record of a transaction.  It gives all pertinent data, including the date, a description of the event, the amounts involved, the accounts affected, and whether the amount was an increase or decrease. 

 The terms debit and credit are traditional in bookkeeping and account­ing.  The term debit originally came from the Latin word for debt, that is, an amount owed.  The term credit is derived from the Latin word for belief, as in a creditor's belief in a debtor's promise to pay an amount owed.  By current accounting convention, debit simply means an entry on the left‑hand side of an account.  Conversely, credit means an entry on the right‑hand side of an account.

 The terms debit and credit also apply to the accounting equation.  The left‑hand side of the equation (assets) is called the debit side; the right‑hand side (liabilities plus owner's equity) is called the credit side.

To show how transactions are entered, consider this story of Mrs. Smith, who inherits $10,000 in jewelry and decides to open a jewelry business.

When Mrs. Smith starts her business, she puts all of her jewelry into it.  At that time, the financial condition of the business is, Assets, $10,000; Owner's Equity, $10,000.  The business now has assets of $10,000 in jewelry and the only claim on those assets is her own ‑ the owner's.

 Now, since Mrs. Smith requires some cash for business operations, she sells $1,000 in jewelry.  Then, she enters the sales transactions in her book.

 Inventory (an Asset) decreases by $1,000; and Cash (an Asset) increases from zero to $1,000.

 A convention in bookkeeping is that Asset accounts are increased by a debit (or a debit to an asset account represents an increase).  Con­versely, an asset account is decreased by a credit.  (Recall that the assets side of the accounting equation is the debit side.)

For liability and owner's equity accounts, an increase is represented by a credit, and a decrease is represented by a debit.  (Recall that the liabilities plus equity side of the accounting equation is the credit side.)

 In Mrs. Smith's transaction, the increase of $1,000 is recorded as a debit to the cash account.  The decrease in inventory is a credit to the inventory account.

 At this point, Mrs. Smith's Balance Sheet looks like this:

 

             CASH                       $1,000.00             LIABILITIES                         $      .00

             INVENTORY               9,000.00             EQUITY                             10,000.00

                                               $10,000.00                                                    $10,000.00

 Next, Mrs. Smith buys business cards for $100, and enters the trans­action as follows:  cash is decreased (credited) by $100, and office supplies (an asset) are increased (debited) by $100.

 Next, Mrs. Smith buys a typewriter.  She borrows $500 for this purpose.  At this point her enterprise has incurred its first liability (a loan).  A creditor now has a claim on the assets of the enterprise.

 The two account entries that would describe this transaction are as follows:

 A debit (increase) of $500 to an asset account Office Equipment.  A credit (increase) of $500 to a liability account Loans Payable.

 If a Balance Sheet is prepared for Mrs. Smith's enterprise at this point, it will look like this:


Assets:                                                              Liabilities:

Cash                                       $   900.00             Loans Payable                      $   500.00

Inventory                                 9,000.00

Office Supplies                             100.00             Owner's Equity:                     10,000.00

Office Equipment                          500.00

                      _________                      __________

                                                                         Total Liab. &

Total Assets                           $10,500.00             Equity                                $10,500.00

 

 For each transaction, an entry is made in a journal or daily transaction book.  A journal is a record of transactions in date order.  (Your checking account record is a typical journal.)  Since Mrs. Smith's journal is used to record all the transactions of the enterprise, it is called a General Journal.

 As time goes on, the transactions accumulate in the journal; it becomes increasingly difficult to prepare a Balance Sheet from the journal data.  Mrs. Smith decides to organize the transactions by account.

 To do this, Mrs. Smith uses another book, in which she sets aside a separate page for the following accounts:  Cash, Inventory, Supplies, Equipment (all assets), Loans Payable, Accounts Payable (liabilities), and Owner's Equity. 

 She transfers the data for each transaction from her journal to the proper account in her book.  After this data transfer, Mrs. Smith has a record of the increases and decreases for each account in date order.  At any time she may turn to the page of an account and figure the account balance.

 This book, arranged by account, and by date within each account, is called a Ledger.  Since the ledger contains all the accounts for the enterprise, it is called the General Ledger.

 The action of transferring transactions from the Journal to the Ledger is called posting to the ledger. 

 Notice that each transaction recorded in the Journal affected two accounts.  This was done so that at any time, a Balance Sheet would be balanced.

 Now, when posting to the ledger, two entries must be made into the ledger for each transaction in the journal ‑ one for each account affected.  This is known as Double Entry Bookkeeping.

 NOTE: In a computerized accounting system, such as the General Ledger system described in this manual, entries are not made in books, but are entered through terminals into transaction files (for example, a General Journal Transaction file, which is recorded on a disk).  Data can be transferred (posted) by the computer from a General Journal Transaction file to a General Ledger Transaction file, which corre­sponds  to the posting from a journal to a ledger in a manual account­ing system.  When you require printed reports of the General Journal or the General Ledger accounts, you simply request the computer to print them.

 

Profit and Loss

 To continue the story of Mrs. Smith's jewelry business, consider the case where she sells $1,000 worth of jewelry for $1,200.  She then makes a $200 profit on the sale.

 Suppose she records this transaction as follows:  Inventory is de­creased (credited) by $1,000; Cash is increased (debited) by $1,200.

 Her assets now exceed her liabilities and equity by $200, and her Balance Sheet would be out of balance.  Two hundred dollars in extra cash suddenly appears in the books, with no offsetting figure to bal­ance it.

 Mrs. Smith decides that, since any profit from a sale ought to go to the owners, she will create a new account in the ledger, under Owner's Equity, and call it Profit.  She then records the above transaction as follows:

 

    Inventory decreased by $1,000; Cash increased by $1,000.

    Cash increased by $200; Profit increased by $200.

 

The Balance Sheet now balances.  Apparently, all is well, except that there are two problems:  each time Mrs. Smith makes a sale, she must enter two transactions, with four amounts reflected.  This creates much extra paperwork.

 Most importantly, data from transactions of this sort are useless.  As more sales are made, the Profit figure rises.  When the owner withdraws some money from the enterprise for her personal use, the Profit figure decreases.  After a few years of activity, the amount in the Profit account reflects all the profit from sales minus all owner's with­drawals for the entire history of the enterprise.  The Balance Sheet shows an amount for Profit, which is meaningless.

 Profit has meaning only when related to a certain time period.

 To handle profit, a separate group of accounts is set up.  A Profit account is created as one of the accounts in Owner's Equity.  The Profit account is further subdivided into two opposite types of accounts:  Revenue and Expenses.  Any transaction, which increases Profit, is recorded as Revenue.  Any transaction, which decreases Profit, is called an Expense.  The sales made by the enterprise generate revenue.

 All operating costs for the year are recorded as expenses.  This includes rent, advertising, office supplies, telephone, and so on.

 The sequence is as follows:

 1. At the beginning of each fiscal year, all the Revenue and Expense figures are cleared to zero.

 2. When a sale is made, it is recorded as in the following example:  Sale of jewelry:  Cash is increased by $1,200; Revenue is increased by $1,200.  (Notice that an increase in Revenue is an increase in Equity, so the Balance Sheet still balances, since cash is an asset.)

 3. When an expense is incurred, it is recorded as follows in the following example:  Paid rent:  Cash decreased by $500; Expenses increased by $500.

 4. Similar transactions occur throughout the year.

 5. At the end of the year, all the Revenue and Expenses are added up, and a Profit and Loss Statement (also called the Income Statement) is prepared showing all the Revenue and all the Expenses.  The difference between Revenue and Expenses, on the bottom line, is the Profit (or Net Income) figure for the year.  If Expenses are greater than Revenue, the bottom line is the Net Loss.

 The following is a sample Profit and Loss (P&L) Statement:

                For the Period 1/01/91 to 12/31/91                               

                            Sales                                                     $20,000                                                     

                            Expenses:                                                                    

                                Rent                                                       1,000

                                Advertising                                              3,000

                                Office Supplies                                           500

                                Telephone                                               1,000                              

                                Total Expenses                                    $ 5,500                                         

                            Profit                                                      $14,500

 

 6. After the P&L Statement has been drawn up, the Profit figure is brought over to the Balance Sheet.  In other words, the profit, being an increase in Owner's Equity, is recorded in an account set aside for it in the ledger, in Owner's Equity.  Such an account is sometimes called Retained Earnings.  Now a Balance Sheet may be prepared, with this figure shown as Profit for the Year, and the Balance Sheet will balance.

 7. Finally, the Revenue and Expense figures are cleared to zero, and the procedure starts all over again for the new fiscal year.

Thus, the two most important results of the accounting procedure are the Balance Sheet and the Profit and Loss Statement.  All bookkeeping is done to aid the preparation of these two reports.

The Balance Sheet shows the Assets, Liabilities and Equity of an enter­prise as of a certain date.  The P&L shows the Revenue and Expenses for a period, that is, between two dates.

Since Revenue and Expenses are subdivisions of Profit, which itself is a part of Owner's Equity, these two reports, and their accounting procedures, are interrelated.

The Balance Sheet must always balance.

The General Ledger package assists the accountant in the design and layout of the Balance Sheet and Profit and Loss Statement, and records all business transactions so that these reports may be complete and correct.

 

Transactions

 We will frequently use the term transaction, which is an instance of doing business, or an exchange.  Two typical transactions are sales transactions and cash disbursements (that is, payment) transactions.  The word transaction is frequently abbreviated as TRX.

 Transactions are entered in terms of debits (Dr) and credits (Cr).

 When transactions are entered into the computer, they are usually entered into a temporary Transaction file.  The transactions in the Transaction file can be easily changed or deleted.  After the correct­ness of the transactions has been verified, they may be posted to become part of more permanent data files, similar to the way that, in bookkeeping, transactions are posted from a journal (book of daily transactions) to a ledger (a final book of accounts).

 The two equations that are basic in accounting are as follows:

    1.    Assets = Liabilities + Owner's Equity or A=L+OE

                    and

    2.    Net Income (Loss) = Revenue ‑ Expenses or NI(L)=R‑E

 When the books are closed for the year, the Net Income (Loss) is added into an Equity account, such as Owner's Capital or Retained Earnings.

 Thus, the Net Income from equation (2) can be added to the owner's Equity in equation (1) to alter the value of owner's equity, as follows:

     3.    Assets = Liabilities + Owner's Equity + Net Income (Loss) or A=L+OE+NI(L)

            But since NI(L)=R‑E, we can write the equation:

     4.    A = L+OE+R‑E

 If we add E to both sides of the equation, we obtain

     5.    A+E=L+OE+R

From this, we see that Assets and Expenses are on the left (or debit) side of the equation and Liabilities, Owner's Equity, and Revenue are on the right (or credit) side of the equation.

Assets and Expense accounts are typically debit, and are debited when they increase, and credited when they decrease.

Liability, Owner's Equity, and Revenue accounts are typically credit, and are credited when they increase, and debited when they decrease.

The general ledger is a collection of accounts into which all the financial transactions of the company are distributed after being classified.  Each General Ledger account is identified by an account number.  The account number may be divided into three parts:  a main account number of up to eight characters and two subaccount numbers of up to eight characters each.  The total number of characters for any account number may be fifteen (15) characters.  This includes any combination of the three parts equaling a TOTAL of fifteen characters.  The format of the account number is defined by the user via the Company Setup application in the Util_setup pull down window of the Elliott Main menu bar.

 The first subaccount number is useful for keeping track of transactions and amounts associated with different profit centers within a company.  For example, your company might have two major divisions associated with the sale of product type A and product type B.  To keep separate accounts of income and expenses associated with the two different product lines (profit centers) you could assign a subaccount number of 100 to all income and expense accounts associated with product type A and a subaccount number of 200 to all income and expense accounts associated with product type B.  You can then refer to profit center 100 and profit center 200.

 The other subaccount number will be useful for keeping track of transactions and amounts associated with different departments within a profit center, within a company.  Financial Entities must be used to report by a single or range of departments.

 In double entry bookkeeping, debit and credit entries are made to different general ledger accounts so that the entries exactly balance.  That is, the total of the debit entries equals the total of the credit entries for a particular transaction.  For example, suppose a customer makes a cash payment on his account. 

The Accounts Receivable account of the company (the amount owed to the company) would decrease (credit) while the cash in the bank account would increase (debit).  Thus, the debit and credit in these two accounts would offset each other and equal zero.

 

Multi Company Concepts

 

The Multi Company option provides a much greater segregation between companies than just individual financial statements.  Individual financial statements can be generated in a single company environment using profit centers, departments and financial entities.

Multi Company should be used for companies that have subsidiaries or independent divisions that run their own accounting, distribution and manufacturing operations.  Each company operates a separate accounts payable, accounts receivable, and order entry system.  These companies generate their own financial statements and the parent company may consolidate their statements into one total general ledger system.

The Multi Company option creates a separate data directory for each company.  No data files are shared between companies, which allows each company to operate with their own unique data.  This system provides maximum flexibility in setting up companies operating in different industries with different accounting needs.

Each company is identified by a two digit numeric value, which allows up to 99 different companies to be run under the Multi Company option.  A basic directory structure is assumed by the system as follows:

 

 

With the exception of company 01, the data directory names include the company number embedded in the directory name.  Company 01 has a data directory name of DATA.  This was done to be compatible with the company system.

Company consolidation is run from the Processing pull down window and highlighting Company Consolidation. Consolidation may also be run in multiple levels.  Company 02 and 03 may be consolidated with Company 04 and then Company 04 and 05 may be consolidated with Company 01.

 

Startup

Application Overview

 Before proceeding with this section, you must have already created all directories and loaded the Elliott Programs. This is a fairly automated process. For further instructions, please refer to the installation section of the System Manager manual.

 

Company Setup

 How you define your company and account structure is determined in Company File Maintenance.  To begin, login and highlight the company you will be working with. After highlighting the company, press< Enter> or left click your mouse and the following screen appears:

 

 


                       

Screens

 

 Elliott Main Menu


 

1.         Move the cursor to the Util_setup pull down window and the following screen will appear:

Screens

Text Box:

 

 

 

 

 

 

 

 

 Company Setup

 

2.       Select Company Setup application. Refer to the Util-Setup section of the System Manager manual for the Application Overview and Run Instructions for Company Setup.

Screens

 

 

 

 

 

 

 

 

 

 

 

 

 Screen 1 – Company File Maintenance

 

 

 

 

 

 

 

 

 

 

 

 

 

 Screen 2 – Company File Maintenance

 

Screens

 

Setup Procedure

 

In order to begin using the General Ledger system, the following steps must be completed after creating the data files.

 1.         The G/L control data must be entered through the G/L Setup application in the Util_setup pull down window.

 2.         The accounting periods must be entered through the Accounting Period File application in the Maintenance window.

 3.         The full Chart of Accounts must be entered through the G/L  Account File application in the Maintenance window.

 4.         Recalculate account balances from the processing pull-down window.

 5.         Post a transaction for each balance sheet and profit and loss account with the current account balance through the General Journal Trx Processing application in the Processing window using the last day of the previous month for the Journal date.

 6.         Print a Trial Balance through the Trial Balance Report applica­tion in the Report window.

 7.         Define the Balance Sheet layout and Profit and Loss layout using the Statement Layout File application in the Maintenance window.

 8.         Print the financial statements using the Select and Print Financial Statements application in the Processing window.

The above steps will load the system with the necessary information to process the next month's transactions. Many more reports and capabilities may be used through experience with the system and familiarity with this manual.

When posting beginning balance transactions, it is a good idea to code the Source and Reference the same for each transaction.  This helps to identify these transactions for future reference.  It is suggested to use a source of Begbal and Reference of Beginning Balance.

The application sections in this manual may be used to obtain specific information on each application.  The file load sheets contained in some of these sections may assist in accumulation and loading data.           


Processing Procedures

 

Daily Processing

 In performing this checklist, complete each step before moving on to the next step.

 

          Step 1   Enter manual journal entries

            -           Select General Journal Trx Processing - Add application

 

Note:  If you are using other Elliott packages; Accounts Receivable, Accounts Payable, Payroll, Inventory Management, Assets & Depreciation or Job Costing, journal entries are automatically created by the Interface From Other Packages application.

 

          Step 2   Verify transaction entries by printing an edit list

            -           Select General Journal Trx Processing - Entry List or Acct List or Source List application

 

          Step 3   Post manual journal entries to the General Ledger

            -           Select Post General Journal Trx - Post application

 

Period End Processing Checklist

 

In performing this checklist, complete each step before moving on to the next step.

 

          Step 1   Perform Daily Processing Checklist (Detailed in its entirety on the proceeding page - Step 1 through Step 3)

            -           Enter and post all manual journal entries for the current period using the Daily Processing Checklist

            -           All reports should be spooled to disk to allow for backup retention

 

          Step 2   Verify and update transactions for recurring journal entries

            -           Select Recurring Journal Trx Processing - Change application

 

          Step 3   Confirm recurring journal transactions by printing an edit list

            -           Select Recurring Journal Trx Processing - List application

 

          Step 4   Post the recurring journal entries to the master General Ledger

            -           Select Post Recurring Journal Trx - Post application

 

          Step 5   (optional) Print the Distribution to G/L reports from all the other modules

-           Select XX Distribution To G/L Report - Print application where XX is the package name that you want to interface into G/L

 

          Step 6   Pull the journal entries from the supporting packages installed for this company into the 

general journal


-           To have one master posting journal, interface all the transactions from all the installed packages into the general journal before posting

                        -           Select Interface From Other Packages application

                        -           A/R

                        -           A/P

                        -           PR

                        -           A/D

                        -           I/M

                        -           J/C

 

Note:  This step will take the account distributions from other Elliott packages (Accounts Receivable, Accounts Payable, Payroll, Assets & Depreciation, Inventory Management, or Job Costing) and create journal entries that can be edited through the General Journal Trx Processing application. 

 

          Step 7   Verify the journal entries by printing an edit list

            -           Select General Journal Trx Processing - Acct List or Source List application

 

          Step 8   Post general journal transactions from the interface

            -           Select Post General Journal Trx - Post application

 

          Step 9   (optional) Perform print Trial Balance Report application

            -           Select Trial Balance Report - Account Order or Profit Center Order application

 

          Step 10 (optional) Print a worksheet to aid in making adjustments to the Trial Balance

            -           Select Print General Ledger Worksheet - Print application

 

          Step 11 (optional) Use the General Journal Trx Processing application to enter adjustments

 

          Step 12 (optional) Post these adjustments using Post General Journal Trx application

 

          Step 13 (optional) Print a report for easily referencing original journals, and registers

            -           Select Source Cross Reference Report - Print application

 

          Step 14 (optional) Print a report of all journal totals

            -           Select Journal History Report - Print application

 

          Step 15  Select the financial reports that will be printed for the period

-           Perform Select And Print Financial Statements - Select Standard and/or Custom application

 

          Step 16 Print the statements you selected in Step 15

-           Perform Select and Print Financial Statements - Print Standard and/or Custom application

 

          Step 17 (optional) Compress the General Ledger Transaction File

                        -           Select Compress General Ledger Trx File - Compress application

 

Note:  This will consolidate accounts based on each accounts compression code (identified in G/L Account File Maintenance application) and the period end cut-off date.  Compression codes should be used for Cash, A/R, A/P, Inventory, COGS, and Freight accounts.  These accounts should be reconciled each month

 

          Step 18  Perform a backup

-           Make a period end backup of your ENTIRE Elliott system to keep for auditing purposes.  Label and date this backup "Period End  ___/___/___  Backup"

 

          Step 19 Change the current period to the next accounting period

                        -           Select Period File Maintenance - Change application

 

Year End Processing Checklist

 

In performing this checklist, complete each step before moving on to the next step.

 

          Step 1   Perform Period End Processing Checklist (Detailed in its entirety on the proceeding page

- Step 1 through Step 18) EXCEPTION: DO NOT PERFORM ACCOUNT PERIOD FILE  MAINTENANCE (STEP 19) IN THE GENERAL LEDGER PERIOD END CHECKLIST.

-           Save the backup labeled "Period End Backup" with your other period end backups

 

          Step 2   Complete the interfaces from A/R, A/P, PR, A/D, I/M and J/C

 

          Step 3   (optional) Perform a Temporary Year End Procedure

-           Select Year-End Procedure - Year-End application and enter the letter "T" for Temporary

 

            Note:  If you do not need to run a Temporary Close, proceed to Step 6

 

********** Points Of Emphasis  **********

-           A temporary close may be run if you need to continue with the new year and want to make adjustments to the previous year

-           The temporary close should only be run once per year as a preliminary step before the final year-end

            -           Accounting Period dates will roll forward one year

            -           Comparative file will not be updated until the final close

            -           All inquiries will show current year and prior year until a final close is run

                        -           Beginning balances are brought through but changes can be made to these balances prior to the final close

-           DO NOT make adjustments to the retained earnings (capital) account.  These adjustments are made during the final close

 

          Step 4   If you need to make additional entries to the year you have "temporarily closed", you may               do so by dating the transaction with the last day of the prior year

 

          Step 5   If you want to run Financial Statements, a General Ledger Worksheet or a Trial Balance,               you will need to manually change the Accounting Period dates to the previous year.  Be                 sure to change them back to the new current year when you are finished running these                   reports.

 

          Step 6   Generate and keep the Final Trial Balance for the year that is being closed

                        -           Select Trial Balance Report - Account Order application

 

          Step 7   Perform a backup

-           Make a backup of your ENTIRE Elliott system to keep for auditing purposes.  Label and date this backup "End of Year Backup - 20__"


          Step 8   Run Final Year End Procedure

-           Select Year-End Procedure - Year-End application and enter a "F" for Final close

 

********** Points Of Emphasis  **********

            -           Comparative file will be automatically updated to include prior year statistics

                        -           If your G/L Setup file contains the retained earnings (capital) account and the "Post Retained Earnings At Year End?" flag is set to Y, a retained earnings/loss transaction is written to the General Journal Transaction File.

-           All profit and loss (revenue and expense) account balances will be zeroed (cleared of any General Ledger transactions) and balance sheet accounts will have a beginning balance brought forward (BBF)

 

          Step 9   Verify retained earning/loss transaction (which was entered manually OR that was created               by the running of the Year-End Procedure application) by printing an edit list

                        -           Select General Journal Trx Processing - Acct List application

 

          Step 10 Change the "Allow Out Of Balance Posting" question in the G/L Setup to "Yes"

                        -           Select G/L Setup - Change application

 

          Step 11 Post Retained Earning/Loss transaction (There should not be any other transactions in                   the journal file)

                        -           Select Post General Journal Transactions - Post application

 

          Step 12 Change the "Allow Out Of Balance Posting" question back to "NO"

                        -           Select G/L Setup - Change application

 

          Step 13 Balance and compare a Trial Balance Report with the Trial Balance generated before the               Year End Procedure application was run. Save this Trial Balance as your Beginning of                 the Year Trial Balance

                        -           Select Trial Balance Report - Account Order application

 

          Step 14 Perform a backup

-           Make a backup of your ENTIRE Elliott system to keep for auditing purposes.  Label and date this backup "Beginning of Year ___/___/___ Backup"

 


G/L Main Menu

Application Overview

 

The General Ledger Main Menu presents the menu bars that are available to the user.  The menu consists of six pull down windows. 

The Maintenance window contains applications to maintain the G/L package.

The Inquiry window allows you to view the General Ledger Transactions and General Ledger Account information without the ability to change any record.

The Processing window is where most all of your activity will take place. Entering journal transactions and posting/updating this information to other files.

The Reports window presents a wide selection of management and analysis reports that will assist you in making company decisions.

The Util_setup window accesses files that need to be set up in order to tailor the software to meet your company's needs.

After the application has been run to completion, the G/L menu bar will display once again and allow entry of another applica­tion.

 

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 G/L Maintenance Pull Down Window 

 

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 G/L Inquiry Pull Down Window

 

 

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 G/L Processing Pull Down Window


 

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 G/L Reports Pull Down Window

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

General Ledger

  1. GLMENU General Ledger Package Overview
  2. My General Ledger Interface with Other Package Is Out of Balance
  3. Can Journal Ledger Be Imported to General Ledger?
  4. Is There a Way to Pull All Manual GL Entries Out of Elliott?
  5. How to Print a Wider Financial Statement
  6. General Journal Transaction Out Of Balance After Interface with AR
  7. How to Archive GL Data Before Year-End Closing Procedure
  8. GL Year-End Closing Checklist
  9. Do I Need to Kick My Users Out When Interfacing with Other Packages in GL?
  10. General Journal Transaction In Balance But Not Able to Post
  11. Net Income from Profit & Loss Statement Does Not Match Balance Sheet
  12. Feature - G/L Interface from Other Package Customer/Vendor/Employee Number/Name Default
  13. Error During GL Interface from Other Package and Journal Transaction Is Lost
  14. COMPRESS General Ledger Processing Compress General Ledger TRX File
  15. GLBUDMNT General Ledger Budget File Maintenance
  16. GLCMPMNT General Ledger Comparative File Maintenance
  17. GLCONSOL General Ledger Company Consolidation
  18. GLCTLMNT General Ledger G/L Setup
  19. GLDSTMNT General Ledger Distribution Code File Maintenance
  20. GLENTMNT General Ledger Financial Entity File Maintenance
  21. GLJNLLST General Ledger Journal History Report
  22. GLPRDMNT General Ledger Accounting Period File Maintenance
  23. GLPRDSCN General Ledger Period Account Balance Report
  24. GLRATSCN General Ledger Financial Ratio Report
  25. GLRECALC General Ledger Recalculate Account Balances
  26. GLRECENT General Ledger Recurring Journal Trx Processing
  27. GLSRCMNT General Ledger Source File Maintenance
  28. GLTRIALB General Ledger Trial Balance Report
  29. GLWRKSHT General Ledger Print General Ledger Worksheet
  30. INTERFAC General Ledger Interface From Other Packages
  31. TEXTMNT General Ledger Statement Text File Maintenance
  32. SRCEXREF General Ledger Source Cross Reference Report
  33. YEAREND General Ledger Year-End Procedure
  34. GLACTMNU General Ledger G/L Account File
  35. GNJINLENT General Ledger General Journal Trx Processing
  36. My Net Income (BSNI) at Balance Sheet Does Not Equal My Net Income on the P&L Statement
  37. Budget File Maintenance Questions & Answers
  38. LAYMNU General Ledger Statement Layout File Maintenance 1
  39. LAYMNU General Ledger Statement Layout File Maintenance 2
  40. LAYMNU General Ledger Statement Layout File Maintenance 3
  41. LAYMNU General Ledger Statement Layout File Maintenance 4
  42. LAYMNU General Ledger Statement Layout File Maintenance 5
  43. LAYMNU General Ledger Statement Layout File Maintenance 6
  44. LAYMNU General Ledger Statement Layout File Maintenance 7
  45. LAYMNU General Ledger Statement Layout File Maintenance: Index
  46. STMNTMNU Select and Print Financial Statements 1
  47. STMNTMNU Select and Print Financial Statements 2
  48. STMNTMNU Select and Print Financial Statements 3
  49. STMNTMNU Select and Print Financial Statements 4
  50. STMNTMNU Select and Print Financial Statements: Index

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