The General Ledger account codes can be configured to accommodate simple or complex account structures. This is accomplished by using up to 50 alphanumeric characters, containing up to six distinct segments. The actual account code reference for each item in the Chart of Accounts can be any segment.
The General Ledger is linked to the sub ledgers - Debtors, Creditors and Inventory via the classifications for each module. All transactions that are activated with dollar values update the General Ledger.
There are two major types of journals:
- Internal - where the journal is generated from within the General Ledger module i.e. General Journals, repeating or Template journals and Pending journals
- External - where the journal set is created from transactions in external modules e.g. creditor invoice from the Creditor module, stock transfer from Inventory
There is no processing procedure as such for the period end for the General Ledger. The field Locked in the Setup configuration form for the ledger controls which postings are accepted to a period by the ledger.
- Open - allows postings to the ledger from all modules
- External Locked - will only accept postings from the ledger. Postings from the other modules e.g. purchase invoicing are excluded
- Global Locked - does not accept any postings
Jiwa 7 allows 2 years to be open and posted to. When the third year is to be posted to, a Yearly Rollover over MUST BE performed. Any undistributed profits or losses should be posted before the roll over if required and a back up must be done. All users must be logged out of the system for the Yearly Rollover to be performed. Once a year has been rolled transactions cannot be posted to that year.
Setting Up the General Ledger
There are various aspects to the General Ledger that need to be set up before posting can start.
Years, Periods & Segments
The configuration details for the general ledger are entered into the system via the General Ledger->Configuration->Setup screen. Segment numbers and lengths together with period descriptions and years are entered here.
The Years section at the top of the form shows the financial years that have been defined in the Jiwa system. The Add Year button allows creation of a new financial year. Upon creating a year, a Year No. value is generated by the system, but this can be over-typed to be any numeric value. It is recommended that the Year No. field be given the value of the calendar year for which the financial year begins. The Starting Date field indicates the starting date of the financial year - it may be set to any date irrespective of when previous financials years started, but it must not fall within the starting and ending dates of any existing financial year. The Retained Earnings Account defines the general ledger account into which the profit for the year will be placed upon rolling the year. It does not have to be set immediately, but a Yearly Rollover will fail if no retained earnings account has been defined for the year. The Rolled field indicates whether the year has been rolled (ie. profit calculated and the year locked). This value is set by the system upon Yearly Rollover and is therefore read-only to the user. Obviously, for a newly created year this field will be un-ticked. The years defined can be examined to determine what constitutes the "Last", "Current" and "Next" years in the context of the Jiwa system:
Last Year - The most recent year that has a tick in the Rolled field.Current Year - The oldest unrolled year.Next Year - The second oldest unrolled year.
The Periods section contains the list of periods for the currently selected year (the highlighted year in the year section). Period names can be defined and well as the start date for each period. The end date of each period is taken to be the start date of the following period, minus 1 second. Periods can also be locked - an External Lock means that only local journals can be created, whilst a Global Lock means that no journals can be posted. Finally, the Rolled field indicates whether a period has been rolled (via Period Rollover).
The bottom section of the form is the Segments section. A general ledger account number is made up of a number of segments, each of which being separated by a separator. On this form segments can be added or removed, and have it's Length, Name, andType defined. For example, if 3 segments are added, the first segment of length 4, the second of length 3, and the third as length 2, given a separator character of "-" a genernal ledger account umber would look something like 1200-200-01. That is, 4 characters then the separator, 3 characters then the separator again, then the final 2 characters. A maximum of 6 segments can be defined, although 3 segments is usually enough - too many segments can lead to an overly-complicated chart of accounts. Segments define the structure of the general ledger and are used to group together accounts at different levels when reporting or viewing data. For example, if the first segment is defined as the account and if the second segment was defined as being the "State" (Vic, NSW, etc.) then a series of general ledger accounts may appear as:
1200-000-00 Freight In1200-200-00 Freight In NSW1200-300-00 Freight In Vic1200-600-00 Freight In WA
Above, the parent account is "1200-000-00 Freight In", and being a parent account transactions cannot be posted to it. Only the child accounts can be posted to - these are 1200-200-00, 1200-300-00, and 1200-600-00. However, when we view account 1200-000-00 we can see the balances and movements for all freight (the sum of the child accounts). When we look at account 1200-200-00 we can see the balances and movements for NSW only, looking at account 1200-300-00 we only see figures for Vic, and so-on.
The Type of a segment may be Account No. or Open, with only one of the segments being assigned the Account No. type. The Account No. type is special in that accounts "pivot" around this value. It defines the segment that acts as the main identifier of agrouping of general ledger accounts. In the example above, it is the first segment that is of type Account No., as it is the "1200" which defines "freight" ledger accounts.
If any general ledger accounts exist in the system, then the Segments section will not be editable - except for the Name field.
Each general ledger account must be associated with a category. The category determines the type of account - Balance Sheet or Profit & Loss, as well as it's expected sign (debit or credit). Each category is associated with a group and sub-group - these determine the position of the account in the Profit & Loss and Balance Sheet reports (as does the display order). There is no limit to the number of categories that can be created.
Amounts posting to the opposite of the expected sign will display the amount in bold - e.g. posting of a debit to the creditor account will bold the amount being posted 4,500.00.
To create a general ledger category:
1. On the Jiwa menu, go to General Ledger -> Configuration -> Categories.
2. Enter in the following details:
Description - The category name. This is a text field.Sign - indicates the usual posting sign to that account typeGroup - select form list box. These are hard coded and cannot be added toSub Group - headings that will appear in the reports when generated in Detailed modeDisplay Order - list the order the sub group headings will appear in the relevant reports when Detailed mode is selected
A newly created Jiwa 7 database contains some predefined categories for both Balance Sheet and Profit & Loss account types. These can be edited, added to, or deleted as required.
Where additional reporting is required without the desire to add extra ledger codes or increase the segment code structure, ledger accounts can be setup in the Postings tab to record and track additional data by way of additonal codes. The descriptions for these codes is setup in the System Configuration form.
Steps: 1. General Ledger -> Configuration -> Transaction Codes 2. Select the relevant tab 3. Type in information required 4. Repeat steps 2 and 3 5. Save the changes
There are two types of masking Jiwa as follows:
- Branch masking - where the branch is selected on sales orders. When the order is processed, the mask is applied to the sales and cost of goods accounts only. Debtors are not masked
- Warehouse masking - masks all inventory balance sheet accounts e.g. Expected Asset and Liability (purchase orders), Delivered Asset and Liability (GRN's and Bookins) and Inventory Control (purchase invoice, shipment invoices, sales order processing). Creditors are not masked.
Sales Division/Branch details are used where allocation to branches at sales order entry stage is required. The following system settings can extend the allocation of the division details to the General Ledger.
Ledger - BranchSegNo. The account number segment applicable to branching. A ledger mask is applied over the Profit & Loss accounts in the journal(s) created by Sales Order Processing Invoicing - BranchInvoicing. Facilitates branch/sales division selection on sales orders and quotes
When sales orders and credit notes are processed a sales division ledger mask is applied to the journal sets created.
Steps: 1. System Settings -> Branch Config
- Description - of the branch. Type in details
- Ledger Mask - segment details applicable to the branch
- Default - one record must be set as the default record
2. Repeat for additional branches 3. Save the changes
Importing a Chart of Accounts
A General Ledger Account Import Utility is provided to allow for quick and easy importation of a chart of accounts into a new Jiwa database.
General Ledger Maintenance
The General Ledger Maintenance form is used to define general ledger accounts.
General Ledger Maintenance fields
|Account No.||Each account has a unique account number field. This field is divided into segments. There may be up to 6 segments in the General Ledger, and the number of segments applies to all accounts|
|Description||This is a simple description of the account|
|Details||Additional optional information about the account|
|Short Cut||Not used in the current system|
|Category||Reporting categories that are set-up in the Categories form|
|Sign||Expected sign of the account|
Normal - used for all accounts other than Retained Earnings and Bank accountRetained Earnings - only one account can be set as the Retained Earnings account. When the Yearly Roll Over is run, any undistributed profits or losses are posted to this accountBank - ledger accounts for bank accounts. This accounts only are displayed when paying creditors or receiving money from debtors
|Segments||This section details the different segments of the account set-up by the Setup form. Description for each segment are set-up and editable in that Setup form|
|Posting Account||Indicates if the account is a posting account|
|Parent Ledger||Displays the relevant account where applicable and you can drill to that account|
Where an account is a posting account, the Posting Account box us ticked and is disabled and the link to the Parent Account is displayed.
This tab displays a summary per General Ledger period of the opening balance, movement and closing balance per period for three years - Last, Current and Next Year. Parent accounts reflect the sum for all associated posting accounts.
|Displays the period descriptions from the Setup form for the Current Year|
|Last Year Open||Opening balance for each period where the account is a Balance Sheet account|
|Last Year Movement||Movement for each period|
|Last Year Close||Closing Balance for each period|
|Curr Year Open||Opening balance for each period where the account is a Balance Sheet account|
|Curr Year Movement||Movement for each period|
|Curr Year Close||Closing Balance for each period|
|Next Year Open||Opening balance for each period where the account is a Balance Sheet account|
|Next Year Movement||Movement for each period|
|Next Year Close||Closing Balance for each period|
Figures With Budgets
Three budgets can be entered for Current and Next Year - Budget 1, 2 and 3. When a yearly roll over is performed, current budgets move into Last Year and next year into Current Year budgets. Budgets are displayed when Use Custom Columns is ticked and the fields are made visible on the Manage Grid form. Budgets can be entered by typing in the figures or using the Auto Set Value to set the figures. A Profit & Loss report with comparisons to Budget can be used to report results against budgets.
|Current Year Budget 1, 2 and 3||Dollar value applicable|
|Next Year Budget 1, 2 and 3||Dollar value applicable|
The Posting tab can be used to set up specifics about a ledger account code.
Clearing - facilitates transferring balances from one account to another. Ledger system setting AllowClearingAcrossPeriods determines if clearing is done period by period or many periods in one actionTransaction Codes - facilitates collection of additional information rather than creating more ledger codes. Description of the heading is controlled by the Ledger settings TransCode1, TransCode2 and StaffCodeDisperse Journal Postings - allows a posting to one account to be dispersed in a pre-set ratio to one or more accounts. The total % disbursed must total 100%.
|Clearing Account||Select relevant account from the search window. The ribbon button Clearing Posting is used to clear transactions to another account|
|Transaction Codes||Tick where required|
|Disperse Journal Postings||Tick the box to enable ledger account selection. Percentage per account is entered in % Amount field. Saving the changes where the Distribution Total does not add to 100% warns with "Distribution Postings do not total 100%"|
|% Amount||Percentage value|