AIS 011- General Ledger (G/L)
Introduction
In order to operate this module properly, You need to have a good accounting
knowledge. You should be knowledgeable of what chart of account means,
how to setup it, and know what each account means. You also need to
be knowledgeable of what goes to debit and what goes to credit, and
familiar with T accounts. Besides that, you should be familiar with
the financial statement, and balance sheet. Without these basic accounting
knowledge, it is almost impossible for you to work with the General
Ledger module. If you don't feel comfortable with the accounting, then
it is always better to leave to a professioanl accountant to handle
this part.
General Journal
General Journal shows all chronological records of the company's transactions.
The journal type 'A' is generated automatically by the AIS system, and
it can not be modified from the general journal screen. The other type
of journal is 'M', which means manual entry. The manual entry can be
modified as long as the date of journal entry is more recent than the
posted date.
If you find a journal entry type 'A' with error, then there are 2 ways
to fix the problem:
- First, identify the source of the journal entry by looking at the
origin and the reference number. Then go to that module, pull out the
transaction, and modify it. For example, if the origin is 'SAIN' and
the ref. no. is 1001, it means sales invoice no. 1001.
- Or create a new journal entry with adjustments to reflect the journal
with type 'A' that has to be modified.
Ledger Account
Click Open and press F2 to select Account ID.
Type period and click OK.
Sub Accounts
Click Open and type the period.
Select Account with Sub Accounts item to make modifications.
Trial Balance
Click Open and type the period and click OK.
Income Statements
G/L can generate 2 different types of financial statement: perpetual
and periodic inventory system.
The Perpetual Inventory system is based on continuous record that tracks
inventories and the cost of goods on a day-to-day basis. The Periodic
Inventory system is based on cost of goods and inventory balance which
are computed only at the end of an accounting period.
AIS can generate financial statement based on both perpetual and periodic
system. Your accountant can help to decide which financial statement
is the right one for your company. Since AIS records both systems into
AIS database, you can change the inventory system any time just before
generating the financial statement. Click Options button from the financial
statement screen.
The default inventory system is the one you chose in G/L Setup.
In general, small businesses tend to favor the periodic inventory system.
As businesses grow and become more complex, large companies use the
perpetual system. Once you decide which system your company will use,
go to G/L setup, and modify the Inventory System accordingly.
Balance Sheets
Click Open and type the period and click OK to see the current asset.
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Last update: January, 2005.