G/L Implementation Guidelines
Before you may begin to process financial information in the General Ledger system, some initial steps must be followed to build the GENERAL LEDGER MASTER files, enter current balances, and set up specific values in the CONTROL file that determine how some processing and updating of files will take place.
A) Building The Department Master File
Before you begin entering the chart of account information, you must create your DEPARTMENT MASTER file. Enter all the departments that you are going to use to breakdown the financial statements.
NOTE: Even if you do not wish to use departments, you must set-up one arbitrary department to use with your accounts.
Use the G/L Department Maintenance option on the G/L Master File Maintenance Menu to set-up Departments in the DEPARTMENT MASTER file.
PREPARATION HINTS:
Before beginning, you must determine how you intend to number the departments.
You may wish to use the G/L Department Report option on the G/L Master File Reports Menu to print a hardcopy of all your departments. You may then distribute copies to all staff who will be operating the General Ledger module.
B) Building The Chart Of Accounts Master File
Before you begin processing journal entries, you must create your CHART OF ACCOUNTS MASTER file.
Use the G/L Chart Of Accounts Maintenance option on the G/L Master File Maintenance Menu to set-up Accounts in the CHART OF ACCOUNTS MASTER file.
PREPARATION HINTS:
Before beginning, we recommend reviewing the G/L Chart Of Accounts Report, G/L Balance Sheet Report and G/L Income Statement Report. You may use any of the accounts that are provided with the installation of the General Ledger system, or you can remove all the data and start over with a new chart of accounts. Also, it is wise to determine the numbering system you wish to use so that you can eliminate any numbering problems before actually entering accounts and avoid having to start over. For the most part, your existing G/L Numbers probably can be used, but note you may wish to expand and enhance your existing Chart of Accounts at this time. You may wish to critique your current financial statements for unclear or problematic areas and take steps to correct them now.
You may wish to use the Chart Of Accounts Report option on the G/L Master File Reports Menu to print a hardcopy of all your accounts. You may then distribute copies to all staff who will be operating the General Ledger module.
C) Building The Budget Master File
Before you can begin printing Income Statements with budget comparison, you must create your BUDGET MASTER file.
Use the G/L Budget Maintenance option on the G/L Master File Maintenance Menu to set-up Budgets in the BUDGET MASTER file.
PREPARATION HINTS:
Determine the annual amount you wish to budget to each account and decide whether you wish to divide this amount evenly among all accounting periods, or determine the specific amount you wish to distribute to each period.
You may wish to use the G/L Budget Report option on the G/L Master File Reports Menu to print a hardcopy of all your budgets. You may then distribute copies to all staff who will be operating the General Ledger module.
D) Defining Values In The CONTROL File
Use the G/L Control File Maintenance option on the G/L Master File Maintenance Menu and answer the following prompts. Please refer to the option description for complete details.
Retained Earnings Acct - to define the account that will be updated when the year is closed out.
E) Entering Current Balances
Account balances are entered depending on the point in time at which you are in your accounting year. If you are just beginning your fiscal year, it is easiest to enter account balances when initially entering your G/L accounts. There is a provision in the Chart Of Accounts Maintenance program to enter a Current Beginning Balance. Then, to update the ledger, enter journal entries for the activity that has occurred thus far.
If you are well into your fiscal year, the other alternative, which also leaves an adequate audit trail, is to enter current account balances by journal entries (making an entry for the beginning balance of the account for each accounting period). Then, continue by entering journal entries to update the ledger to the current point in time.
NOTE: Because we realize you may have to wait for your accountant in respect to acquiring accurate beginning account balances, you may begin processing of the General Ledger without entering balances. Be aware that financial reports will only be reflective of the current data in the system and may not provide a complete picture until balances are entered at a later date.
If you wish to enter balances when entering accounts:
1) When initially entering your Chart of Accounts using the G/L Chart Of Accounts Maintenance option on the G/L Master File Maintenance Menu, enter the fiscal year Beginning Balance in the CURRENT BALANCE field.
PREPARATION HINTS:
Have all account balances available before beginning. Print all of the following reports to verify balances were entered accurately: G/L Trial Balance Report, G/L Balance Sheet, and G/L Income Statement from the G/L Reports Menu.
If you wish to enter balances via journal entries:
1) Use the Journal Entries G/L Journal Entries Maintenance option on the G/L Processing Menu to make a journal entry for the beginning balance of each account for each accounting period that has passed thus far up through the current period.
PREPARATION HINTS:
Gather balances from past financial reports for each prior accounting period.
Use the G/L Journal Entries Report option on the G/L Processing Menu to review the entries and check for accuracy. If necessary, use the Journal Entries Maintenance option to make corrections.
2) Use the G/L Journal Entries Posting option on the G/L Processing Menu to post the entries to G/L CURRENT and MASTER files.
3) Print all of the following reports to verify balances were entered accurately, G/L Trial Balance Report, G/L Balance Sheet, and G/L Income Statement from the G/L Reports Menu.