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General Ledger

Introduction

The 1ERP General Ledger (GL) module is a fundamental part of the accounting. It can offer the following benefits to businesses of all sizes:

Manage financial data: manage all of your financial data, including your chart of accounts, account balances, and journal entries.

Automate journal entries: automate the process of creating and posting journal entries, which can save time and reduce errors.

Provide real-time financial information: provide real-time financial information, including current account balances, income statement, cashflow statement, and balance sheet. This can help you make informed business decisions based on up-to-date financial data.

Facilitate financial analysis: provide financial data for analysis such as financial ratios, variance analysis, and trend analysis.

Generate financial reports: generate financial reports such as income statements, balance sheets, cash flow statements, and trial balances. This can help you track your financial performance over time and provide information to stakeholders such as investors, lenders, and regulators.

Overall, this General Ledger module can help you improve efficiency, reduce errors, and provide accurate and up-to-date financial information, ultimately resulting in better financial management and decision-making.

You can integrate General Ledger with the following:

  • Accounts Payables Module
  • Accounts Receivables Module
  • Fixed Assets Module
  • Payrolls Module

Setting up General Ledger

After installation of the Rintagi General Ledger Module, please follow the below steps to set up the General Ledger for your organisation.

Step 1: Creating Natural Accounts

Add natural accounts for the created GL accounts. Use the Natural Accounts screen in the miscellaneous menu to group GL accounts under unique natural accounts names.

Command: Miscellaneous-> Account Manager ->Natural Accounts

Please note the natural accounts are the ones that are shown the financial statment reports. The Natural Accounts are means to condense all GL accounts into their corresponding natural accounts. For your refernce a host of natural accounts have been created, you can edit these or create new ones as needed.

Step 1A: Creating Natural Accounts for Banking Accounts.

The below natural accounts needs to be set up for each bank accounts, please use the given sample to create similar natural accounts according to the banking needs.

Command: Miscellaneous-> Account Manager ->Chart of Accounts

Following this, the corresponding GL Chart account for the created Banking natural accounts . A sample one created for cash is shown in the figure below,

Step 2 : Add GL Accounts

Add general Ledger Accounts using the Chart of Accounts Screen in the miscellaneous menu of the General Ledger Module. Users can make use of the option to import users' old account using the Import accounts screen .

Command: Miscellaneous-> Account Manager -> Chart of Accounts

For your reference a host of GL accounts have been created, you can edit these or create new ones as needed.

Step 3 : Designing Chart of Accounts

It is important to carefully design chart of accounts and their natural accounts early on in the process. The GL module allows users to design Chart of Accounts and segregate them into departments, locations and sources. Care must be taken when account numbers are assigned to chart of accounts, it must be able to accomodate for future accounts .

Use the department or location or sources screen to create new departments,locations and sources. Once these are created the created chart of accounts can be further segregated by the newly created departments,locations and sources.

Command: Miscellaneous-> Account Manager ->Department

Command: Miscellaneous-> Account Manager ->Location

Command: Miscellaneous-> Account Manager ->Source

A sample GL chart is available along with the package, which can be edited to create more personalized one for your organisation.

Step 4: Set up Company Information and fiscal period

It is important to set up the company information, current fiscal period and the fiscal start month. This information will drive the month end process.

In order to complete this process,

Command: Operation -> Month End -> Rollover Fiscal.

Please enter all the mandatory information and click save to complete the process. Please note the fiscal period has to be changed manually in the screen at the end of all period month end processes are completed.

For a sample, the Monthend of 2017/11 has been completed meaning sample transactions have been posted and the month end has been rolled to 2017/12. These can be deleted in the backend if necessary.

Step 5: Set up Company Static Accounts

Command: Miscellaneous-> Company Accounts

The company accounts screen provides the ability to setup static accounts that are to be used when a particular transaction happens in the system.

Please enter the appropriate accounts for the AR and AP transactions to be posted into the correct account.

Adding and Maintenance of Accounts

Users need to make use of the GL account screens to setup and maintain the General Ledger accounts that make up their chart of accounts.

Information stored in General Ledger Accounts

A new GL accounts will need the following mandatory information

  • Natural Account
  • Account Name
  • Company
  • Active Status

Non - Mandatory Information, that can be added for a more complete GL accounts are

  • Department
  • Location
  • Source

Adding Accounts

Add accounts to record information for different transaction types in your general ledger.

Adding a New Account

You must assign an account structure to each new account. The account code for every GL account is a combination of segment account code , department account code, location account code and Source account code. The department,location and source are not mandatory and can be used for a large complex chart of accounts which needs to be segregated by the department,location or source.

Add new account to G/L

  1. Open Command: Miscellaneous-> Account Manager - > Natural Accounts

  2. Click on the add button and enter the

    • Select the company name
    • Select the account type
    • Click the cash account if it is one
    • Enter a accounut code
    • Enter a account name

  3. Open Command: Miscellaneous-> Account Manager -> Department to create new departments

  4. Open Command: Miscellaneous-> Account Manager -> Location to create new locations

  5. Open Command: Miscellaneous-> Account Manager -> Source to create new source

  6. Open Command: Miscellaneous-> Account Manager -> Chart of Accounts

    Enter the following information to create a chart of accounts

    • Choose the natural account (create new one using the above process in needed)
    • Select the department name
    • Select the location
    • Select the source
    • Enter a account name
    • Enter a legacy account name if needed
    • Choose the currency
    • Choose the company
    • Select a appropriate member having access to this account if needed
    • Denote the status of the account

Adding Account Balances to New G/L Accounts

Before you can use General Ledger, you must at least enter beginning balances for the current fiscal year.

If you intend to enter period data for previous years, do so first. Entering last year’s ending balances establishes the current year’s beginning balances.

Before you start:

Activate your General Ledger, specifying the first full year for which you want to keep account data, and the current fiscal year. During activation, General Ledger:

  1. Create and post closing balances to the year before the first full year for which you want to keep account data.

Open Command: Operation-> Journal Entry

Enter the account name and the closing balance for the account by clicking on the add button and entering the chart of account and the account balance.

  1. After all the journal entries are created for the post closing balances

Open Command: Operation-> Journal Posting to view all the Journal Entries created and not yet posted to the system.

  1. Remove the hold option across all the journal entries by clicking on the master hold button on the menu bar of the screen. All journal entries which do not have a hold status can now be posted. Click on the post button to post all journal entry transactions.

  2. Advance the fiscal period by going to

Command: Operation -> Month End -> Rollover Fiscal and change the current fiscal to the first full year for which the account data is to be maintained.

Entering and Posting G/L Txn

Use General Ledger Transactions screens to enter and post batches of journal entries, and to review and edit transaction information before posting.

A General Ledger batch is a group of journal entries, each of which contains at least two transaction details: one for the debit amount and one for the credit amount.

Journal entries do not affect G/L account balances until you post the batches.

Posting Batches

Rintagi GL module is a batch‐oriented accounting system.

  1. You group financial transactions together and enter them in batches before you post them to general ledger accounts. You use the G/L Month end -> Checklist screen to add batches directly into General Ledger.

Command: Operation -> Month End -> Check List

In order to post GL transactions for a given month , click on the modules like Accounts Payable , Accounts Receivable and Banking Module

Click on the AP/AR button to post all the AP transactions in a batch. All transactions that have are yet to be posted are posted automatically. This button can be engaged any number of time without any problem as transaction are posted only once.

Key Note: You could encounter an error when there are no rows on this table and you try to access this screen. This would need a row to be created in the backend . `

  1. After all the journal entries are created for the post closing balances

Open Command: Operation-> Journal Posting to view all the Journal Entries created and not yet posted to the system.

  1. Remove the hold option across all the journal entries by clicking on the master hold button on the menu bar of the screen. All journal entries which do not have a hold status can now be posted. Click on the post button to post all journal entry transactions.

  2. Advance the fiscal period by going to

Command: Operation -> Month End -> Rollover Fiscal and change the current fiscal to the first full year for which the account data is to be maintained.

Editing a Batch

Once a batch of journal entries are created for you , you can view and edit them if necessary.

  1. Go to Command: Operation -> Journal Entry

  2. Enter the date and the name of the posting module for ex:(2017.04.30 AP) to bring up the recently created journal entry for this module.

  3. Make changes to the child grid by clicking on it, to add new row click on the add button and enter the information as required.

Adding a Journal Entry

A journal entry in General Ledger is like a manual journal entry. The sum of the debits equals the sum of the credits. Each debit line and each credit line in a journal entry is called a detail. You use the G/L Journal Entry screen to maintain batches, journal entries, and journal entry details.

  1. Go to Command: Operation -> Journal Entry

  2. Create a new journal entry with the master information which includes

    • Currency
    • Company
    • Location
    • Journal Type
    • Transaction Type
    • Date Applied
    • Click on the add button to enter the chart of accounts for the debit and credit information

  3. Please follow the process posting batches to post the newly created journal entry.

About Recurring Entries

You can set up and schedule journal entries for recurring transactions that vary little from period to period, such as periodic depreciation charges or loan repayments. You use the G/L Recurring Entries screen to set up one or more recurring entry records.

Setting Up Recurring Entries

  1. Go to Command: Operation -> Recurring Entry

  2. Enter the following mandatory information

  • Company Name
  • Project Name
  • Start Date of the recurring entry
  • End Date of the recurring entry
  • Frequency of the recurring entry
  • Currency for the recurring entry
  • A description for the template
  • Enter the chart of accounts to be debited and credited by clicking on the add button

Period-End Procedures

Use General Ledger Periodic Processing screens to perform tasks that are part of your regular periodend procedures, such as clearing history, creating general ledger batches, and deleting inactive records.

Performing Month End Processing

Before closing the month, Aging summary balance on the A/R Module has to match with A/R Balance on the Trial Balance of G/L Module, and Aging Summary balance on the A/P module has to be balanced A/P balance on the Trial Balance of the G/L module.

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At the end of a fiscal month, you must close the income and expense accounts for the old month, and open them for the next fiscal year.

To maintain clear and complete accounting records, there are other procedures you should follow at year end.

Posting G/L Transactions

  • Go to the Operation menu of the General Ledger module
  • Under the operation menu, go to the month end, and go to the check list
  • Select modules that you would like to create G/L entries, and click them to complete current month transaction “A/P, A/R, etc”

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In order to post GL transactions for a given month , click on the modules for which you would like to create GL enteries for transaction completed for the current month . This can be your AP module or your AR module.

Click on the AP/AR button to post all the AP transactions in a batch. All transactions that have are yet to be posted are posted automatically. This button can be engaged any number of time without any problem as transaction are posted only once.

After all the journal entries are created for the post closing balances

Open Command: Operation-> Journal Posting to view all the Journal Entries created and not yet posted to the system.

Remove the hold option across all the journal entries by clicking on the master hold button on the menu bar of the screen. All journal entries which do not have a hold status can now be posted. Click on the post button to post all journal entry transactions.

Advance the fiscal period by going to

Command: Operation -> Month End -> Rollover Fiscal and change the current fiscal to the first full year for which the account data is to be maintained.

Voiding a posted journal entry

Once a batch of journal entries are posted for you , you can view and void them if necessary.

  1. Go to Command: Operation -> Posted Journal

  2. Enter the date and the name of the posting module for ex:(2017.04.30 AP) to bring up the required journal entry.

  3. Once the correct journal entry has been selected, click on the void button to void the particular jounral entry.

  4. A new journal entry can be created in the Command: Operation -> Jounral Entry screen

General Module Menus

In this chapter, we will look at menus and their functions within the General Ledger module.

Miscellaneous Menu

Account Management

The Account Management area of the General Ledger Module allows users to create new chart of accounts , group chart of accounts under a natural account, maintanence of Departments, Locations and Source.

There is also an option to import user's old accounts directly using the Import Accounts screen.

The company accounts screen provides the ability to setup static accounts that are to be used when a particular transaction happens in the system.

Create and maintain different account and journal types.

Operations Menu

The operations menu offers users the ability to enter and post journal entries as well as create adjustments and miscellaneous entries. If batch processing is set up using a background schedule( needs to be coded by user) journal entries can be created in batches.

If other modules are integrated with the General Ledger Module , daily postings from these sources are updated to the general ledger . If other modules are not integrated, General Ledger module is the primary location to creating and posting journal entries.

Under the Month End menu, the checklist screen allows users to post transactions from different modules manually. This is a rapid batch entry process for posting transactions like AR and AP modules and banking transactions

Recurring Journal Entry screen provides the ability to enter journal entries of fixed amounts that repeat each period , these could depreciation and amortization amounts. A recurring journal entry can be created by entering the accounts amount and the frequency the entries are to be posted.

Reports Menu

The Accounts Payable module provides numerous reports that provide up-to-date information of all your GL related activities.

Trial Balance Report

Command: Operation -> Reports -> Trial Balance

The Trial Balance Report is a bookkeeping or accounting report that lists the balances in each of an organization's general ledger accounts.

The general ledger trial balance is a summarized listing of account activity for a accounting period. This report can be printed for a defined fiscal month .

The general ledger trial balance report is commonly used to check balances of all accounts in the general ledger.

General Ledger Report

Command: Operation -> Reports -> General Ledger

The General Ledger Report provides the general ledger postings for a given module within a given date.

Financial Statements Report

Command: Operation -> Reports -> Financial Statment Reports

The Financial Statement Reports provides relevant financial information presented in a structured manner and in a form easy to understand.

The reports can be income statements, Balance Sheets, Quarterly Statements . The report definition menu provides users with the ability to change different settings to the financial statement reports.

New reports can be defined using this menu and can be viewed in the financial statement reports section.

Chart of Accounts Report

Command: Miscellaneous-> Account Manager -> Chart of Accounts

The chart of accounts is the complete listing of all the accounts in the general ledger module. The chart of account export provides a list of all account names, natural account name, account number ,status of the accounts and other related information.

Use Chart of Accounts under the Miscellaneous menu and leave the search bar empty. Now click on the export button to get a list of all chart of accounts in an excel.

Viewing GL Information

Viewing Chart of Accounts Information

You can use the G/L Chart of Accounts screen to:

  1. List all the accounts in the general ledger, in account number order onto an excel for printing purposes

  2. View detailed information for a selected account.

To view Chart of Accounts information:

  1. Open Command: Miscellaneous-> Account Manager -> Chart of Accounts

  2. If you want to view your chart of accounts beginning with a certain account number (for example, to start the list from revenue and expense accounts), enter or select the account number in the search field. A particular G/L account can also be brought up by typing in the name of the account.

View Txn Posted to G/L Accounts

To look up transaction history for an account:

  1. Open Command: Operations-> Posted Journal

  2. Enter the date and the name of the posting module for ex:(2017.04.30 AP) to bring up the recently created journal entry for this module.

  3. Choose the correct journal entry to view the information that has be posted to the system.