Screens Involved in General Ledger (G)

All options used to operate the General Ledger are accessible from the Selection Screen F10. Remember that the Selection Screen is accessible from most places in the program by pressing the F10 key, or pressing the right button on your mouse. The General Ledger is operated by six of the options listed on the Selection Screen. These options are listed below with a brief explanation of their function. The symbol or letter in parenthesis ( ) is the key to strike to access the indicated function from the Selection Screen F10.

SETUP COMPANY G/L SCREEN (#)

This is the company setup screen. Company information such as the address and the identification number is entered here. The ledger accounts are also listed here (up to five are available). It is here that many of the account numbers are entered to tie in the other accounting modules

with the General Ledger module. (The Setup A/P and A/R (&) screen is used to tie in the Accounts Payable, Accounts Receivable, and other modules with the General Ledger module, but it is not used directly in operating the General Ledger package.)

VENDOR SCREEN (V)

This screen is used to specify a code for each vendor under which you may enter the vendor's name, address and other information. Entering the vendor on this screen will lessen the amount of typing when entering a check on the Ledger (L) screen. The Alt+B and Alt+F functions in the Ledger (L) screen allow you to leaf back and forth through all the checks entered for a specific vendor. This screen also allows for the accumulation of data needed to generate 1099 forms for vendors. A description of a number of the fields on the Vendor screen follows.

Vendor Code Field

The Vendor Code is automatically generated when you enter the vendor name.
Name, Attention, and Address Fields

Enter the name and address as you want it to appear on checks. The Attention field between the Name and Street Address may be used as a second line for the name or as an additional address line.

For more information on entering City, State and Zip, Page 38. The same information is found by pressing F10, Z, Shift+F1, Q for Questions, and then A.
Country Field

If this vendor is located in a country other than your own, enter the coutry here.

Federal Employer Identifcation Number (EIN)

Enter this vendor's Federal EIN. If the vendor has no EIN, the FICA number is used when printing 1099 forms.
FICA #

Enter this vendor's Social Security (FICA) number. If the vendor has no EIN, FICA is used when printing 1099s.

Enter an I in this field to prevent a 1099 from being generated for an incorporated vendor when using Report # 4-11 to generate 1099s. Enter an N in this field if this vendor is not incorporated and you do not want to generate a 1099 for them. Enter an S in this field to force all payments to this vendor to be totaled on a 1099 record when 1099s are generated.

G/L #s

The following fields are restricted and are maintained by the computer: Balance, Post Date, Current P/O Amount, Last Month P/O Amount, Prior YTD P/O Amount, Current Shipping Ticket Amount, Last Month Shipping Ticket Amount, Prior YTD Shipping Ticket Amount, Current Buy Amount, Last Month uy Amount, Prior YTD Buy Amount, Current Payments, Last Month Payments, Current Discounts Taken, Last Month Discounts and Prior YTD Discounts.

These fields are updated upon entry of a purchase order, payable invoice, shipping ticket or check. The Post Date tells when the last transaction was posted, and indicates which month is represented in the month-to-date figures.

GENERAL LEDGER ACCOUNTS SCREEN (G)

This screen is used to set up and to access the General Ledger accounts. The field set for each account establish what type of account it is and establish the format of the financial statement. Note that before entering data into the ledgers, the ending dates must be entered in the Next Period Ending field of the General Ledger Accounts (G) screen starting with the ending date of the last fiscal year. For further information on setting up financial statements, Page 210. The same information is found by pressing Shift+F1, selecting Questions, and then option S.

LEDGER SELECT SCREEN (-)

This screen is chosen to enter financial data. There are several possibilities:

(1) Computer Entries - This allows access to entries the computer has recorded from other accounting modules, such as A/R, A/P and Payroll.

(2) Adjustment Entries - This allows access to noncash financial adjustments, such as depreciation. It is also used to enter beginning balances.

(3) Usually Ledger 3 is set up as the main Checking Account.

(4) to (7) are ledgers for the other four available checking accounts.

LEDGERS SCREEN (L)

This allows access to the same ledgers as the G/L Ledger Selection screen (-) except that it automatically defaults to Ledger # 3 unless the last ledger accessed since entering the program is a ledger other than Ledger # 3. In that case, the L option will automatically default to the ledger last selected. For example, when entering the program, selecting L from the Selection Screen F10, will access Ledger # 3. If you input entries into Ledger # 2 (Adjustments), the L selection will automatically default to Ledger # 2. If you make entries in Ledger # 4, the L selection will automatically default to Ledger # 4, etc. If you exit the program and then return, it will again default to Ledger # 3. Use the Ledger Select (-) screen when you desire to enter a ledger other than the one the Ledgers (L) screen is set to default to.

GENERAL LEDGER REPORTS SCREEN (4)

This screen accesses the financial reports available. These reports are discussed in detail under the following titles in your manual. The same information is found when you press F1 after you type the report number on the 4 screen.

Press Page 225 to page through the same information here.

General Ledger - How to Add Account Numbers (G)

If you need additional G/L numbers, you should first print out a copy of your Chart of Accounts. To do this, press F10 and then 4. Type 1 and press Enter five times. Press P to print it out.

(If necessary, consult with your accountant or with Advanced Business Computers for the proper place to insert new G/L numbers.)

1. Press F10 and then G.

2. Type the new G/L number. (You may type right over a previous number.)

3. Press Enter.

4. Type the Account name.

5. Press Enter.

6. If this account is used with Job Costing, put an M for Material, S for Subcontractor or A for All (both), in the Type M/S/A field.

7. Press F9 to save the new account.

Introduction to the General Ledger (G)

Learning to operate a new program can prove frustrating if the tools to learning it are not available. This reference guide is designed to make learning to operate the General Ledger program easier and less frustrating. A brief description of the parts of the reference manual relating to the General Ledger is given here to enable you to enjoy the use of this program to its fullest capabilities.

This reference guide begins with a brief overview of the general ledger package. Our general ledger program is an independent yet integral part of the comprehensive accounting package which has been designed to meet your accounting needs. The first part of this overview briefly discusses the capabilities of the General Ledger program and explains how the general ledger relates to the entire comprehensive accounting program.

Overview of the General Ledger (G)

The ABC Accounting General Ledger program is a basic accounting program. The related ABC Accounting modules, such as Accounts Receivable and Accounts Payable, are subsidiaries to the general ledger program and channel their information into it. The General Ledger as well as the other modules can be operated independently of each other, yet together they make up a complete accounting package. The General Ledger, independently of all the other modules, accumulates the financial data entered from checks, deposits, adjustments, etc., and uses them to prepare financial statements. It can be used to print out checks as the amounts are entered into the ledger and is also capable of entering after-the-fact data from a check ledger as well as accepting non-cash adjustment entries.

The ABC General Ledger includes two types of trial balances to insure that the total debits and the total credits entered are equal. The one trial balance prints

out each account with a balance and lists that balance either as a debit or as a credit balance. The other trial balance shows individual transactions for each account. This option enables tracing accounts more easily.

The final product of any General Ledger system is the financial statements derived from the raw data. ABC Accounting General Ledger has the capability to print either individual financial statements or departmentalized financial statements with a multiplicity of departments. To generate departmentalized financial statements, the chart of accounts must be categorized properly. Study carefully Departmentalized Financial Statements in your manual before setting up a chart of accounts for your departmentalized statements. BE SURE TO DO THIS BEFORE ENTERING DATA. ONCE ENTERED INTO A STANDARD CHART OF ACCOUNTS, IT IS TOO LATE TO DEPARTMENTALIZE FOR THOSE ENTRIES!

The General Ledger program has many routines which facilitate easy, accurate data entry. For example, cities, towns and their zip codes are stored in a data file. When entering the city and the zip code for a vendor, you are given the opportunity to first enter the zip code. If the code you entered is already in the data file, the city/town is entered automatically. Likewise, a list of vendors is created as data is entered. When entering checks written to vendors who have been assigned codes, simply typing the shorter vendor code will retrieve the vendor name.

Here is another utility from check entry. After each check is entered, the program automatically picks the subsequent number. If you type in a check number which is not in sequence to the one previously entered, you will be asked whether or not you want to skip the numbers which you are bypassing.

Unlike some programs with a complex series of menus, there is almost no chance of becoming lost in the general ledger. From most places in the program, all you need to do to reach the main menu is to press the F10 key. However, don't forget to save your last record before you return to the main menu. Entering a check or deposit entry and returning to the main menu without saving the record will result in losing that record because it was never recorded on the disk.

There are a few places in the module where F10 is not available because to leave that part of the program at that time could result in a loss of data or because a report is being run. If you decide to access the main menu at one of those points, you will need to wait until the utility being used is completed before accessing the main menu.

Setting Up Financial Statements - Overview (G)

After you have reviewed the fundamentals of the accounting statements, you are ready to put these principles to practice and discover how to use this program to prepare financial statements. The steps to preparing financial statements are first listed briefly, and then each step is further explained on the following pages.

1. Determine the financial statement format which best meets your accounting needs and decide how you want the data arranged on the statements. Your financial advisor and your ABC Accounting dealer will probably have some helpful suggestions.

2. Create the chart of accounts needed to produce the desired statements. Be sure to study the format the program uses to print headings, totals, etc., on the

statements. For information on departmentalized financial statements, Press Page 203. The same information is found by pressing Shift+F1, selecting Questions, and then option D.

3. Enter the company data on the Setup Company G/L (#) screen.

4. Set up the chart of accounts on the General Ledger Account (G) screen.

5. Enter the beginning balances on the Adjustment Ledger screen. (Press F10, then minus (-) and then 2, to go to the Adjustment Ledger.)

NOTE: If you are using Accounts Receivable and Accounts Payable, step # 6 applies and skip step # 7. If you are using only the General Ledger Package, skip step # 6 and go to step # 7.

6. Post any required amounts accumulated in the Accounts Receivable, Accounts Payable, Inventory and/or Payroll reports to the General Ledger.

7. Enter data from your source documents (usually the check register).

8. Print a detailed trial balance to examine the data entered and to insure that debits equal credits.

9. Make any noncash adjustments such as entering the depreciation for the period and recording any ending accruals if accounting on an accrual basis.

10. Print out the financial statements.

Setting Up Financial Statements - Step # 1 (G)

LAY OUT A HYPOTHETICAL BALANCE SHEET ON PAPER - Using the sample financial statements in the manual and advice from your financial advisor and ABC Accounting representative, determine what your finished statement should look like.

Lay out a hypothetical Balance Sheet and a Statement of Income, trying not to miss any needed accounts. Be sure to include the headings. Laying out hypothetical statements is an important step because you can best achieve the desired results if you first decide what you need and then produce it. Any other approach will probably result in much lost time and/or failing to realize your financial statement needs.

IF YOU ARE PLANNING TO UTILIZE THE DEPARTMENTALIZED FINANCIAL STATEMENT CAPABILITIES OF THIS PACKAGE, BE SURE TO READ THE SECTION TITLED "Departmentalized Financial Statements." Press Page 203 to access this information. The same information is found by pressing Shift+F1, selecting Questions, and then option D.

CREATE A CHART OF ACCOUNTS ON PAPER - After you have laid out your desired financial statements, create a chart of accounts from the financial statements by numbering each account including all the headings and the subheadings such as Assets, Current Assets, etc. The program obtains all the headings for the financial statements from the accounts which are set up on the General Ledger Accounts (G) screen. These accounts are derived from your chart of accounts.

You may be able to use a Chart of Accounts which ABC Accounting has already set up. You can add accounts or subtract accounts depending on your needs.

Below are several recommendations for assigning account numbers.

1. Number accounts in the order in which they will appear on the financial statement. The program prints the accounts on the financial statement in ascending number order, (starting with the lowest number).

2. Use two, three, or four-digit numbers. Three-digit numbers are usually the most practical to use.

3. Number the Balance Sheet before the Income Statement. For example, on a chart of accounts with 3-digit account numbers, 500 would be a good place to divide between the two statements. In that case, the 1st Sales Heading

account number would be 500 and all numbers for the Income Statement would be higher than 500.

4. Skip several numbers between each account in order to allow room for additional accounts. Rare is the person who assigns a chart of accounts and never needs to revise it!
Setting Up Financial Statements - Step # 3 (G)

ENTER COMPANY INFORMATION INTO THE COMPUTER - Enter the primary information for the company on the Setup Company G/L (#) screen. This screen is accessed from the Selection (F10) screen by pressing #. Most of the fields are self-explanatory. The program has the capability to enter up to five checking accounts on separate ledgers. These are listed on the Setup Company G/L (#) screen as ledgers 3 to 7. Enter the statement account number and the title for each checking account. Much of the rest of the information on the lower part of the page relates to the

other modules as they interrelate with the General Ledger package. No account numbers need to be entered in these fields unless you are using those modules. The following fields are of interest:

1. Year-end Month - Enter the number in which your financial year ends. Except for fiscal year taxpayers, enter 12 for December.

2. Retained Earnings Account # - The Retained Earnings Account is the account in which the cumulative profits are stored. It is a different account from the Year-to-date Earnings account. At the end of the year, the Year-to-date Earnings account is often closed out to the Retained Earnings account. Therefore, the Retained Earnings account shows the cumulative profits for every year except the current year. Presently the end-of-year adjustment is a manual adjustment. ABC's standard Retained Earnings Account # is 401.

3. Sales Start Account # - Enter here the first revenue account. This marks the break between the Balance Sheet and the Income Statement. ABC's standard Sales Start Account # is 500.

4. Department Start # - This field is reserved for departmentalized financial statements. Enter here the account number where the departmentalized part of the financial statements begins. No entry is needed if the entire statement is to be departmentalized. If only the Statement of Income is to be departmentalized, enter the first Statement of Income account number.

5. Department Multiplier - The multiplier indicates how far apart the accounts for the various department are. Only 100, 1000, 10000, and 100000 are available. Keep in mind that this entry also limits the number of General Ledger accounts each department

is able to have. For example, entering 100 limits each department to 100 accounts since accounts 210, 310, 410 etc. will accumulate into the same cumulative account (account 110 in this case).

For further information on setting up departmentalized financial statements, press Page 203. The same information is found by pressing Shift+F1, selecting Questions, and then option D.

Next, comes entering the accounts which you assigned. Accounts are set up by entering them in the General Ledger Accounts screen (G). Enter the following information for each individual account in your chart of accounts:

1. Account # - Enter the account number which you assigned.

2. Name - Enter the title of the account.

3. Statement - This field specifies how the account is used on financial statements. Use from zero to two letters in this field, depending on its function in the financial statements. For more details, see Statement Heading Codes (G) and General Ledger Illustration (G) in your manual.

4. 1099 Field - Usually only a few accounts will need an entry in this field. For detailed help, see the section entitled "1099 Field" in your manual.

The four fields mentioned above are the most frequently used fields on the G/L Accounts (G) screen. For help with the other fields, press F1 while your cursor is on that field.

Once you enter all the accounts from your chart of accounts, you can enter data. The next step covers this.

Setting Up Financial Statements - Step # 5 (G)

MAKE ADJUSTMENT ENTRIES - The first financial data on the file is logically the beginning balance sheet amounts. To access the Ledger Select screen from the Selection (F10) screen, enter a dash (-). You will be given the list of available ledger options.

Option # 1. Computer Entries is the ledger of computer generated entries and should not normally be tampered with.

Option # 2. Adjustment Entries is the adjustments ledger and therefore the ledger in which to enter beginning balances and other entries which do not involve the exchange of cash, for example, accruals and depreciation.

Options # 3 to # 7 are the five available check ledgers.

You can also enter the ledgers by pressing L while on the F10 screen. This automatically defaults you to the last ledger into which you were entering or to Ledger 3 if you have not accessed any ledger since entering the accounting program. Since the method of entering adjustments is exactly the same as that of entering checks with the exception that no cash amount is entered when entering adjustments, we will discuss both under step # 7.

Steps six and seven both give information relating to data entry. Step six explains how data is posted from the other ABC Accounting modules. Step seven explains how to enter data directly into the General Ledger. If you have purchased the Accounts Receivable and Accounts Payable modules, you will be using the methods described under step six to enter data. If you are using the General Ledger as a stand-alone package, the method of entry described in step seven will apply to you.

Setting Up Financial Statements - Step # 6 (G)

POST FINANCIAL DATA FROM OTHER MODULES - If you are utilizing the Accounts Receivable and Accounts Payable ledgers, you will be making very few entries directly into the General Ledger other than the beginning entries and other adjustment entries. Most of your financial data will be entered into the other modules and there will be some posting to do at the end of each financial period. Following is a list of transactions, brief instructions as to where they are entered initially, and instructions as to how to post them to the General Ledger.

1. Posting SALES to General Ledger - Sales are entered into the Accounts Receivable module. They are recorded as credits (negative numbers) on the General Ledger. The posting process varies depending on whether you are using the Cash or Accrual method of accounting. (On the Setup Company G/L (#) screen you should specify which method you are using by entering C or A in the Automatic Deposit

Posting field. This must be done for the Cash Basis deposit posting, described in the next paragraph, to work.)

A. When Operating on CASH BASIS - Because cash basis accounting does not record income until payment is received, it is the cash received which will be posted to the General Ledger Accounts. This is done automatically when a deposit is saved with a Y in the Deposit Total field.

B. When Operating on ACCRUAL BASIS - Since the accrual method records sales as soon as the sale is made, the sale is entered on the Receivable Invoice (R) screen. The total invoices recorded for the period are then posted to sales. This posting is done by running Report # 3-27, A/R SALES BY G/L #. This posting will post all the invoices as a debit to increase the Accounts Receivable and as a credit to increase sales on the General Ledger. Cash and carry sales are

recorded the same way. They are first entered as an invoice and then as a payment.

2. Posting ACCOUNTS RECEIVABLE to General Ledger - Posting Accounts Receivable to General Ledger only applies to Accrual basis accounting. Accounts Receivable is increased by entering invoices as discussed above. It is decreased by the cash receipts of a company. Since posting the debit, which increases accounts receivable, is discussed under sales, all that remains to discuss is the posting of cash receipts which reduce accounts receivable. This does not apply to cash basis accounting because cash basis only posts the sales to General Ledger as the payment is received.

Accounts Receivable is posted by running Report # 3-37, CUSTOMER PAYMENT LEDGER. Doing this at the end of each period will post the total amount received as a credit to reduce Accounts Receivable and will also debit the indicated ledger to increase the cash account.

3. Posting PURCHASES AND EXPENSES to General Ledger - Vendors' bills are entered into the Bill Entry (B) screen. The expenses and purchases are entered into the General Ledger automatically as the checks are written. No further adjustment is needed for a cash basis system because in that case purchases and expenses are only recorded in the General Ledger as they are paid. For accrual accounting systems, an end of the period adjustment needs to be made, reversing the adjusting entry made at the end of the last period and recording the current period's ending Accounts Payable. These results are obtained by running Report # 2-11, PAYABLES BY G/L #. This report posts simultaneously both the ending payables for this period and the reversal of those amounts for the ending of the next period. This preposting is possible because ABC's Accounting programs treat each period in a year as completely separate. These future entries in no way affect the current financial statements.

4. Posting PAYROLL EXPENSES to General Ledger - If the Payroll module has been acquired, the payroll expenses will enter the General Ledger through this module. The totals from the Payroll module are posted to the General Ledger using Report # 4-39, PAYROLL CATEGORY REPORT. This report is accessed through the Payroll Reports (4) screen from the Selection (F10) screen. This report makes all the accrual entries Federal Unemployment Compensation Expense and the Workmen's Compensation Expense entries. These two entries require manual entry.

5. Posting INVENTORY ADJUSTMENTS to General Ledger - The inventory accounts come from Accounts Payable and Accounts Receivable. Inventory is generally increased by debits from Accounts Payable, or the purchase of items, and decreased from Accounts Receivable upon the sale of goods. The inventory is posted to the General Ledger accounts at the end of the period by running Report # 1-7, INVENTORY VALUE. This report will adjust the ending inventory and

the purchase accounts. Because keeping inventory is an accrual basis concept, the process for adjusting inventory is the same for the cash and the accrual basis accounting systems.

In summary, with the use of the complete ABC Accounting program, very little data will be recorded directly into the General Ledger. It will rather receive payments from Accounts Payable and Payroll, receipts from Accounts Receivable, and adjustments from the Inventory screen. It will then use this data to prepare financial statements, the final product of any complete accounting system.

This section has explained how to post various adjustments to the General Ledger from the other accounting modules. It does not discuss how to enter those initial records in the respective modules. For more information, see the help screens for the various ABC Accounting modules.

Setting Up Financial Statements - Step # 7 (G)

ENTER FINANCIAL DATA DIRECTLY INTO THE GENERAL LEDGER - This section will be used mainly by those who are using the General Ledger as a stand alone package. Those using the Accounts Receivable and Accounts Payable modules will occasionaly use these procedures to enter adjusting entries or to edit data.

To enter data from source documents, go to the Ledgers (L) screen or the Ledger Select (-) screen and select the ledger you will be using (3 - 7). We will step through the entry of a check and examine each field into which data can be entered.

The top of the ledger screen contains some important information relating to the ledger. First is a multi-digit number which is made up of the current check number plus a one digit number at the end. The ending number is 0 if the transaction is a check, 1 - 8 if it is a deposit. For manual adjustments, it can be any digit from 0 to 8. The name of the business appears next at the top of the screen. To the right, the figure in the Balance field is a running ledger balance. If you use only one checkbook, this total should agree with the running checkbook balance. The amount contained in the Period Total field is the change of the ledger balance in the last period. A credit (negative figure) means that the balance has dropped and a debit (positive figure) means that the balance has increased.

CHECK # - Once you enter the first check number, the computer will automatically update the check number with each entry. If you skip some numbers when you manually enter a number, you will be asked "Do you want to skip numbers ___ to ___ ( Yes / No )". Press Y if that is what you want to do. Manually entering a check number lower than the highest number entered, brings up that number for editing if it exists. Deposit numbers are entered by pressing a decimal point (.). The computer will then take the last check number entered and annex one digit to identify the deposit number. That digit will be a number between one and eight. Nine is not available because it is reserved for program use. For example, the first deposit entered after check # 1095 will be entered as 1095.1. If there are two deposits entered after check # 1095, the second one will be 1095.2. These deposit numbers can also be entered manually by entering .1, .2 etc., instead of entering only a decimal point (.).

WARNING ! - Deposits must be in the same accounting period as the immediately preceding check. For example, if check # 1095 was written in October and there was 12 periods in your accounting year, then deposits 1095.1 and 1095.2 etc. need also to be in October.

DATE - This will automatically default to the last date entered. For instructions on editing dates, press Page 10. The same information is found from the Start Up (*) screen by pressing Shift+F1 and then selecting Questions, option T (Procedures for Entry and Editing), and then option H (Entering Dates).

When entering new data, the computer is constantly comparing the date entered with the period of current entry. If you enter a date previous to the current period, you will get the message "Date is in the wrong period for this entry."

If you enter a date for a later period, you will get one of two messages. If you get this message "Do you want to enter another accounting period? (Yes / No)", press Y to accept the entered date.

If you get the message "May not be after next to last date on G screen, ??/??/??", that means that the computer system date has to be set to the new month before you can make an entry using a date in the new month. (The computer system date is set on the Start Up [*] screen.)

For example, when using monthly periods, if the current month is October, entering any month prior to October will be rejected. If you enter any date later than October, before the system date has been advanced to that date, the computer will reject the date. If the system date has been advanced, you will be asked whether or not you want to enter another accounting period. Please note, that if you choose Y for Yes, the computer will mark that check

number as the first entry in a new period. You will not be able to enter any check numbers higher than that check number into the prior period. If the first check number in November is 165, you will not be allowed to enter any checks higher than the number 164 for October or lower than 165 for November.

If you skip a period, you will not be able to enter any checks for that period. For example, if check number 164 is dated March 31 and check number 165 is inadverently dated May 1 instead of April 1, you will not be able to enter any checks for April until you delete check number 165 and enter the date correctly.

VENDOR CODE and NAME - These two fields function as one entry. Each vendor is assigned a code by which you can call up the vendor without typing his entire name. For example, if you assigned PADOT0 for the Pennsylvania Department of Transportation; by entering PADOT0 (or often even the first part of the code such as PAD), you can

recall the entire name onto the record without typing it. If you pull up the wrong vendor, pressing Alt+N will bring up the next vendor in alphabetic order and Alt+P will bring up the prior vendor. If you enter a code that doesn't exist in the Vendor screen, a Lookup screen appears that you can use to select the correct Vendor.

The program automatically assigns the codes when you enter a code, press Enter, enter the name on the line below the code and press Enter. These vendors could also be setup in the Vendor file prior to entering checks. Press Page 129 for information on Setting Up New Vendors. This information is also found from the Vendor screen by pressing Shift+F1, selecting Questions, and then option V.

Note that if you enter all deposits under a hypothetical vendor named Deposit, the trial balance and other reports will list all deposits in date order. The vendor code for the Deposit vendor is a dollar sign, $.

If you use a consistent pattern for coding, it will be easier to recall the code. For example, the first three letters of the last name and the first two letters of the first name followed by a zero (0), is a practical approach. If a check is void, you can type in VOID as the vendor code and save it without entering in any more data. (If the Lookup screen appears, simply press Enter and the computer accepts the word VOID. Then press F9 to save.)

AMOUNT - Enter the amount of the check or the deposit. A payment is entered as a debit (positive number), and a deposit is entered as a credit (negative number). Note that deposits (negative numbers) can only be entered when a decimal number (.1 to .8) is entered into the check number field.

DISTRIBUTION - This field is not an entry field. It displays the amount which needs to be distributed to the various ledger accounts. The balance in this field must be zero before you can save the entry. This insures that debits equal credits for each transaction.

ACCT # (Account #) - Enter the first account to which the check is being charged (debited) or the first account to which the deposit is being credited. The account name will automatically be displayed on the screen from the G/L account. When you press Enter, the cursor will move to the Amount field where you will enter the amount to be debited or credited to the account. When you press Enter on the amount field, the cursor will return to the next Acct # field to begin on another account. You can distribute the check or deposit amount among up to 150 different accounts.

If you enter a new account number, a Lookup screen appears with the existing account numbers listed. You can press Alt+A to go directly to the General Ledger Accounts (G) screen and setup the new account there.

WARNING! - If you leave one of the ledger entry (- or L) screens without saving the last entry, that entry will not have been saved and will therefore be lost.

Each time you enter a new General Ledger account number for a vendor, the following message appears at the bottom of the screen, "Act.# not on Vendor file. With cursor on line, Alt+A adds it to file." This means that the Account # you just entered is not in the G/L #s field at the bottom of the Vendor screen for that Vendor. If you press Alt+A while the cursor is on the Account # line, the computer will add that account # to the G/L # field for that Vendor. Then the Account # will automatically be displayed every time this vendor is chosen.

If you do not press Alt+A, the account # will be kept for this transaction but will not automatically display it the next time.

If you are entering an entry to a vendor who has a number of accounts listed automatically, pressing Shift+Up arrow will take you to the first account and pressing Shift+Down arrow will take you to the next space available to enter an account.

DESCRIPTION - Displays the title from the General Ledger Accounts (G) screen automatically when the account number is entered.

AMOUNT - Enter amount to be applied to this account. Enter payment amounts as a debit (positive) and deposit amounts as a credit (negative). Entering a period (.) and Enter or pressing the F9 key will cause whatever is in the Distribution field to be entered to that account number and save the data to file.

REMARK - Use this field when you want to keep a permanent description of a transaction. This field should be used when you acquire or dispose of assets. Enter a brief description of the asset. This will be useful when you report your income for tax purposes. What is in the Remark field is shown when you use Report # 4-13, LEDGER DETAIL and Report # 4-15, TRIAL BALANCE FROM DETAIL. It is also displayed from the G screen when you use Alt+L, Alt+M, Alt+P and Alt+Y.

The cursor will stop at the Remark field, if the account number entered on the line has a Y in the Remark field on the General Ledger Accounts (G) screen. You can also access it by pressing Up arrow after the cursor has gone past the Remark field.

To save your entry, press F9. You will be taken to the Check # field on a clear screen ready to begin entering the next check. Check the ledger balance frequently to verify that it agrees with the checkbook running balance.

Setting Up Financial Statements - Step # 8 (G)

PERFORM END-OF-PERIOD PROCEDURES - After you have either entered or posted from the other modules all the financial data for the period, you are ready to do the end-of-period work. The first step is to print out some preliminary reports. Following is a brief summary of the reports which you are most likely to use to examine the data for the period. Help on all the General Ledger Reports, (Reports # 4-1 to # 4-19), is listed under the report name in the manual or displayed by pressing F1 after you type the report number on the G/L AND PAYROLL REPORTS screen. All General Ledger reports are accessed by choosing 4 from the Selection Screen F10.

Trial Balance - The first statement to print out is the trial balance. Report # 4-14, TRIAL BALANCE FROM ACCOUNTS, lists the following information about each account:

Column 1 is the beginning balance.

Column 2 is the total change of those accounts in which the net change is a debit.

Column 3 is the total change of those accounts in which the net change is a credit.

Column 4 is the total change of all accounts containing balances. A net debit change is shown as a positive number and a net credit change as a negative number.

Column 5 is the Year-to-date balance in the account.

Use this report to verify that total debits and credits at the very bottom of the report (Columns two and three) are equal. If they are not, you will need to try to verify why

they are unequal. One possible reason for an unbalanced trial balance is having turned off the computer without having used the Alt+F4 command to exit the program. Also, simply turning off the computer during the posting of an entry could result in an improper balance. There are two utilities which correct certain trial balance problems. These are Report # 8-28, REDO AUTO LEDGER CLOSEOUTS, and Report # 8-37, G/L LEDGER REPOST. Be SURE that you make a backup of your data before you run either one of these reports.

Also print out Report # 4-15, TRIAL BALANCE FROM DETAIL. This report prints out information from each individual check under the account(s) to which it was credited. Use this report to examine the data entered into each account to determine that the data is posted to the correct account. For example, a check to the vendor, Lumber Warehouse, posted to the electricity expense account is almost definitely incorrect.

There are several other reports which are useful in both tracing any accounting errors and leaving an audit trail.

Report # 4-10, VENDOR CHECK SUMMARY, prints out all the vendors on file and lists all the checks which were written to that vendor in date order. This is a very convenient printout when there is a billing problem. This report also lists all the deposits in date order.

Report # 4-11, VENDOR CHECK DETAIL, includes all the information included in the Vendor Check Summary. In addition, it lists the account(s) to which the individual transactions were charged and includes the remarks entered for each transaction. It is also capable of generating Form 1099s at the end of the year. For information on generating 1099s, press . The same information is found by pressing Shift+F1, selecting Questions, and then N.

Report # 4-12, LEDGER SUMMARY, lists all the transactions recorded in numeric order. It also includes a running ledger total giving the total change in cash for the present period. (The present period is the current month if you use 12 periods per year.)

Report # 4-13, LEDGER DETAIL, gives the same information as the Ledger Summary and in addition also lists the amounts as distributed to the various accounts for each individual transaction. Any remarks entered are also printed.

General Ledger Illustration (G)

Statement Field

1 Suspense

2 ASSETS MA

3 CURRENT ASSETS H

5 Cash B

6 Business Account B

20 Accounts Receivable

101 Inventory

150 FIXED ASSETS H

151 FIXED ASSETS BEFORE DEPRECIATION S

155 Buildings

160 Equipment

170 ACCUMULATED DEPRECIATION S

175 Buildings

180 Equipment

190 INTANGIBLE ASSETS HA

190 Goodwill

200 LIABILITIES & OWNER'S EQUITY ML

201 LIABILITIES I

202 CURRENT LIABILITIES S

210 Accounts Payable

212 Sales Tax Payable

215 Payroll Taxes Payable

230 Notes Payable - Short-term Portion

300 LONG-TERM LIABILITIES S

310 Notes Payable - Hanes Bank

400 OWNER'S EQUITY I

410 John Doe, Capital

490 Year-to-Date Earnings TE

499 MS

501 Sales

600 COST OF GOODS SOLD HE

601 Purchases

690 GROSS PROFIT TI

800 OVERHEAD EXPENSES H

810 Electricity

820 Labor

840 Office Supplies

850 Payroll Taxes

860 Rent

870 Telephone

880 Transportation

899 NET OPERATING INCOME TI

900 OTHER INCOME AND EXPENSES HO

901 OTHER INCOME S

910 Interest Income

920 Gain on Sale of Assets

950 OTHER EXPENSES SE

960 Interest Expense

970 Loss on Sale of Assets

999 NET INCOME TM

You can use this illustration as a guide for setting up General Ledger Accounts. Accounts can be added or deleted, but the headings should generally be used as they are listed here. The headings are all capital letters and they have heading codes in the statement field.

Annual Account Closeout

In a manual accounting system, the steps to closing the books for the year involve closing out the temporary accounts (income statement accounts) to the proper equity accounts. In a sole proprietorship or partnership type business, the net profit or loss is closed out to the individual capital account(s). In a corporation, it is closed out to the Retained Earnings account(s).

In the ABC General Ledger, the temporary (Statement of Income) accounts are not closed out at the end of each period. This makes it possible to print out financial statements for prior periods. The profit or loss for the period is therefore recorded by an adjusting entry to the proper capital account(s) and to a closing account which has an account number higher than the highest number on the income statement.

If the business showed a profit, the proper capital account(s) would be credited and the closing account would be debited. If the business experienced a loss, the proper capital account(s) would be debited and the closing account credited. The closing account would accumulate the amount needed to reverse the previous year(s) income statement accounts.

L - Ledger (Checks and Adjustments)
LEDGER SCREEN EDIT HELP

Add a blank line at the cursor if you are on the repeating fields at the bottom part of the screen. All lines below will be pushed down a line.

Erase the line at the cursor if you are on the repeating fields in the bottom part of the screen. This will move up all lines below if there are any.

Undo present changes to line cursor is on.

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