Intro on General Ledger

General Ledger:

1. General Ledger is the Central Repository from all the Sources (Modules).

Below is the illustration of the Modules Integrated with General Ledger:

2. The Journals that are recorded in the GL is recorded compulsorily with the Source of GL. A source is used to determine the origin of the Journal Entry.

Valid Sources are:

  • Payables
  • Assets
  • Cash Management
  • Receivables

3. Every Journals has to be recorded with Category, a category is used to determine purpose of the Journal Entry.

Valid Category:

  • Purchase Invoice
  • Credit Memo
  • Debit Memo
  • Sales Invoice
  • Adjustments

4.  Journals are maintained in Batches, Headers and Lines in GL

Naming Convention of Batch: Source+ Date and Time

Naming Convention of Header: Category + Currency

Naming Convention of lines:  Accounts, Debits and Credits

Purposes of GL are:

  • We use GL to create Adjustments
  • To record the transactions which are not recorded in a module itself as the number of transaction count is very nominal for a module so the transaction are recorded manually in GL.

Note: To know more on the Accounting Rule refer the link as this would help you to understand how the accounts (Journals) are created.

7 Responses to “Intro on General Ledger”
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