GENERAL LEDGER SCREEN FILE HELP
GENERAL LEDGER SCREEN LOAD HELP
GENERAL LEDGER SCREEN REPORTS HELP
GENERAL LEDGER SCREEN TOOLS HELP
1099's - Preparing and Printing the Forms (G)
1099's - Preparing and Printing the Forms (G)
Alternate General Ledger # (G)
Departmentalized Financial Statements
Overview of Financial Statements (G)
Screens Involved in General Ledger (G)
GENERAL LEDGER REPORTS SCREEN (4)
General Ledger - How to Add Account Numbers (G)
Introduction to the General Ledger (G)
Overview of the General Ledger (G)
Setting Up Financial Statements - Overview (G)
Setting Up Financial Statements - Step # 1 (G)
Setting Up Financial Statements - Step # 5 (G)
Setting Up Financial Statements - Step # 6 (G)
Setting Up Financial Statements - Step # 7 (G)
Setting Up Financial Statements - Step # 8 (G)
General Ledger Illustration (G)
GENERAL LEDGER SCREEN FILE HELP
<Ctrl N> Clear the screen, without saving or unsaving the
current record, and set the reference number to the next
available number.
<F5> exit lookup <Shift F5> close all lookups
<F6> open lookup <Shift F6> alterate lookup
<F9> save record <Shift F9> delete record
<F10> selection screen <Shift F10> go to menu bar
<Esc> Exit one level <Alt-F4> exit ABC
GENERAL LEDGER SCREEN LOAD HELP
<F7> previous record <F8> next record
<Shift F7> When the cursor is on an indexed field, press
<Shift F8> When the cursor is on an indexed field, press
GENERAL LEDGER SCREEN REPORTS HELP
<M> Shows the trial balance for the current month of the
G/L account currently on the screen.
<P> Shows the Year-to-Date trial balance, as of the end of
the Prior Month, of the G/L account currently on the
screen.
<Y> Shows the Year-to-Date trial balance, as of the
current date, of the G/L account currently on the screen.
GENERAL LEDGER SCREEN TOOLS HELP
<Ctrl G> You will receive a message telling you what entry
location and field number your cursor is at. Type in the
number of the entry location you want your cursor to be
moved to and press enter, and your cursor will be moved to
that location.
<Ctrl J> or <Ctrl K> This gives you two notepads to keep
on file anything that you want to remember about this
purchase order. <Ctrl W> Puts the currently loaded G/L # on a Word
processor list. To see the list, press F10, W, Ctrl N (to
clear screen) and then type GLABELS. To learn more, press
<W>.
<Ctrl Z> Undo present changes to line cursor is on.
<F4> Start macro from the line the cursor is on. Press <Shift F4> Record Macro. Press <Shift F3> calculator. Use + to add and total and - to
subtract. Use / to divide and * to multiply. Use ) to
clear and ( for off. Use = or
Account # (G)
The account is the number that identifies the accounts. It may
only be a positive Integer from 0 to 999999
General Ledger reports print by the account number including the
Chart of Accounts (4-1), Trial Balance from Accounts (4-14), Trial
Balance from Detail (4-15), and the Financial Statement (4-18).
Account Name (G)
Statement Heading Codes (G)
This field specifies how this G/L account is used on the
financial statements. You will use from zero to two
letters in this field, depending on its function of the
financial statements. Following is a list of the letters
that can be used. For a more detailed explanation of the
function of each letter, see the following pages.
1. B (Bank Account) - Enter "B" for any ledger accounts.
O (Opening Balance) - on 4-18 Statement prints opening
balance instead the change for the period.
2. M (Main Heading) - Entering "M" indicates that this is
a main heading (e.g. Assets). This heading will
be centered on the line and will begin a new page.
(See # 3) if you do not want to begin a new page.)
a. Enter "MA" for ASSET main heading. The "A"
specifies that the following accounts will be assets
(debits) until another account has a different second
letter in the Statement field.
b. Enter "ML" for LIABILITIES AND OWNER'S EQUITY
heading. The "L" specifies that the following accounts
will be liability, owner(s)' equity, or other accounts
which normally contain credit (negative) balances.
c. Create an account at the beginning of the Income
Statement with no title. Enter "MS" as the statement
field of this account. This account indicates the
beginning of the Income Statement. This "dud" account
is necessary to indicate that this is another page of
the financial statements. This account cannot be used
as the Sales heading because the Sales heading needs
to be left-hand justified. An "M" centers the title
horizontally.
3. N (Non-paging, Main Heading) Use "N" for main headings
for which you do not want to begin a new page. "M" for
Main Heading is centered and always begins a new page. The
"N" option works exactly like the "M" option except it
does not cause the computer to begin a new page. The "N"
option is most frequently used for the LIABILITIES &
OWNER'S EQUITY account if a one page financial statement
is desired. No second letter is needed for the Equity
Accounts since they are credits just as the liability
accounts are.
4. H (Heading) - Use this entry for left-hand justified
titles such as CURRENT ASSETS, SALES, etc. Note: The
second letter automatically defaults to whatever letter
was last entered as the second letter in the statement
field. For example, the "MA" entered on the statement
field of the ASSETS account automatically makes all the
accounts assets until the "SL" entered for ACCUMULATED
DEPRECIATION indicates the beginning of accounts with
credit balances.
5. I - This entry is identical to the "H" entry except
that the heading is centered. This entry is used for the
LIABILITIES and the OWNER'S EQUITY headings on the Balance
Sheet.
6. S (Subheading) - Use this entry for a subheading such
as ACCUMULATED DEPRECIATION. Also use it for the CURRENT
LIABILITIES and the LONG-TERM LIABILITIES sections. The
"S" indents the account title three spaces. In the case of
the ACCUMULATED DEPRECIATION account, enter an "L" for the
second letter in the statement field. Although this
account is not a liability, it is a credit balance account
on the Balance Sheet. Entering an "L" will keep the
amounts from showing as negative numbers on the Balance
Sheet.
7. T (Total) - The program automatically labels totals the
same as the heading title. For example, when the computer
has been printing accounts under the title CURRENT ASSETS
and it accesses an account which the statement field
indicates is another heading, it will automatically print
a line TOTAL CURRENT ASSETS and print out the total. Use
the following choices if you desire to use a totals title
which is different from the related heading title.
a. TM for total main heading
b. TH for total heading
c. TS for total subheading
d. TI (Total Income) Totals Income up to that account
number on the income statement but doesn't close out
income totals. This should be used for lines such as
the Gross Profit line on the Income Statement.
e. TE (Total Earnings) Prints total earnings. Must be
entered at the end of the Balance Sheet in the
Year-to-Date account, the last account on the Balance
Sheet.
8. A (Accumulate) - This option causes the program to
accumulate totals from other accounts into the current
account. All the accounts which follow this account will
be accumulated and printed after the title of the current
account until an account is accessed which contains an "E"
(End) in this field or which is a heading account. For
example, if Account 160 contains an "A" in this field and
account 169 an "E", the total for all accounts from 160 to
169 will print after the title of account 160. This is
merely a calculation; the figures are not actually moved
from the G/L account in which they were entered.
9. E (End) - Ends accumulating and prints out total amount
accumulated. See step # 8 above.
The following letters are to be entered as second letters
in the statement field.
10. A (Assets) - Indicates the first asset account on a
statement.
11. L (Liabilities) - Indicates the first liability
account on a statement. This label can also be used to
reverse a negative number for printing, such as entering
an "L" to keep the Accumulated Depreciation accounts from
printing as a minus on the Balance Sheet.
12. S (Sales) - Indicates the first income account on the
Income Statement. This letter causes the computer to begin
accumulating the sales. It keeps on accumulating until the
program encounters an "E" for expenses. The "S" as the
second letter in the Statement field also triggers the
calculation of the percentage of sales on the income
statement. Never use an "S" twice on an income statement
because the computer will then begin accumulating sales
from that second "S" and not tabulate the Sales accounts
prior to the second "S".
13. E (Expenses) - Indicates the first expense account on
the income statement.
14. O (Other Income) - Indicates other income. The
difference between the "O" and the "S" is that this option
does not trigger the percentage of sales calculation.
Remark Y/N (G)
The Remark field also affects the posting of the
information from the Accounts Payable module. A "Y" in
this field will cause the computer to carry across to the
General Ledger any remarks entered in the Accounts Payable
Remark field. Controversely, an "N" in this field will
prevent the Accounts Payable remarks from carrying across
to the General Ledger. An "N" in this field will also
instruct the computer to combine several similar parts of
a transaction into one entry in the General Ledger.
1099 Field (G)
-11- Miscellaneous Expenses (1099 MISC)
-12- Rent Expenses (1099 MISC)
-13- Interest Expenses (1099 INT)
-14- Royalty Expenses (1099 MISC)
-15- Attorney Expene (1099 MISC)
Note that even though several of these types of expenses
are reported on Form 1099-MISC, they need to be kept
separate because the amounts are reported on different
blocks on the form. Press <N> for information on
"Generating and Printing 1099's." The same information is
found by pressing <Shift F1>, selecting Questions and then
option N.
1099's - Generating (G)
The ABC Accounting General Ledger is capable of taking the
information on file and preparing Forms 1099-INT and
1099-MISC when they are required for the expenses listed
above. It prepares the Form 1099-INT for payments over
$600. It does not print the $10 and up 1099-INT's required
to be filed by banks. Continue reading the following
information under "1099's - Required Entries."
1099's - Required Entries (G)
ENTRIES REQUIRED ON THE GENERAL LEDGER SCREEN (G) - To
accumulate totals for 1099 purposes, those General Ledger
expense accounts which are expenses subject to the 1099
requirements need to have a number in the 1099 Field on
the G screen. The numbers to set are as follows:
11 - Nonemployee Compensation (Miscellaneous Expenses)
- 1099-MISC
12 - Rent Expenses - 1099-MISC
13 - Interest Expenses - 1099-INT
For example, if Equipment Rentals is account # 874,
entering a "12" in the 1099 field on the General Ledger
Accounts screen (G) for account # 874 will cause the
computer to accumulate the amounts paid to all vendors who
were paid equipment rentals, assuming those expenses were
entered into account number 874. The program can then
prepare the proper Form 1099's for any vendor who received
over $600 in rentals or $600 as a combination of rentals
and other expenses subject to the 1099 filing
requirements.
ENTRIES REQUIRED ON THE SYSTEM SETUP SCREEN (#) - The ABC
General Ledger program obtains the business name, address,
and employer identification number to prepare 1099's from
the System Setup screen (#). Be sure that this information
is properly entered on this screen.
ENTRIES REQUIRED ON THE VENDOR SCREEN (V) - The ABC
General Ledger program obtains the vendor's name, address,
and Social Security or Employer Identification number from
the Vendor screen (V). Be sure that this information is
properly entered on this screen.
The Vendor screen also has a field which can be used to
bypass the printing of 1099's. This is the N)o 1099, I)nc.
field on the Vendor file (V). Entering an "I" for
Incorporated or an "N" for No in the N)o 1099 I)nc. field
will bypass the printing of a 1099 for the vendor on whose
Vendor screen either of these entries has been made. This
option is used if a vendor is incorporated or sells
materials rather than services. In these cases, no 1099 is
required.
1099's - Preparing and Printing the Forms (G)
The next report to print is Report # 4-7 VENDOR 1099 LIST.
Examine carefully the list of 1099's on the file. If there
are any mistakes, correct them by entering the
To print the Form 1099's, use Report # 4-8 VENDOR 1099
FORMS. You will need to experiment a bit to line up the
1099's in the printer to have them print on the correct
line. Placing the left edge of the 1099 on the left edge
of the printer carriage and the top of the sheet about
even with the top of the printer head is a good place to
begin with a dot matrix printer. This program prepares
both continuous 1099's and single page 1099's.
The ABC Accounting General Ledger is capable of taking the
information on file and preparing Forms 1099-INT and
1099-MISC when they are required for the expenses listed
above. It prepares the Form 1099-INT for payments over
$600. It does not print the $10 and up 1099-INT's required
to be filed by banks. Continue reading the following
information under "1099's - Required Entries."
1099's - Required Entries (G)
ENTRIES REQUIRED ON THE GENERAL LEDGER SCREEN (G) - To
accumulate totals for 1099 purposes, those General Ledger
expense accounts which are expenses subject to the 1099
requirements need to have a number in the 1099 Field on
the G screen. The numbers to set are as follows:
For example, if Equipment Rentals is account # 874,
entering a "12" in the 1099 field on the General Ledger
Accounts screen (G) for account # 874 will cause the
computer to accumulate the amounts paid to all vendors who
were paid equipment rentals, assuming those expenses were
entered into account number 874. The program can then
prepare the proper Form 1099's for any vendor who received
over $600 in rentals or $600 as a combination of rentals
and other expenses subject to the 1099 filing
requirements.
ENTRIES REQUIRED ON THE SYSTEM SETUP SCREEN (#) - The ABC
General Ledger program obtains the business name, address,
and employer identification number to prepare 1099's from
the System Setup screen (#). Be sure that this information
is properly entered on this screen.
ENTRIES REQUIRED ON THE VENDOR SCREEN (V) - The ABC
General Ledger program obtains the vendor's name, address,
and Social Security or Employer Identification number from
the Vendor screen (V). Be sure that this information is
properly entered on this screen.
The Vendor screen also has a field which can be used to
bypass the printing of 1099's. This is the N)o 1099, I)nc.
field on the Vendor file (V). Entering an "I" for
Incorporated or an "N" for No in the N)o 1099 I)nc. field
will bypass the printing of a 1099 for the vendor on whose
Vendor screen either of these entries has been made. This
option is used if a vendor is incorporated or sells
materials rather than services. In these cases, no 1099 is
required.
Once the necessary data is entered, the program is ready
to generate 1099's. The first step is to print out Report
# 4-11, VENDOR CHECK DETAIL. When running this report, you
will be asked whether you "desire to Generate the 1099
File (Y)." Answer "Y" for yes and specify 12-31-xx for the
date. A full Vendor Check Detail Report will print either
on the screen or on the printer, depending on which option
you chose. When this report has been completed, the data
has been accumulated for the 1099's.
The next report to print is Report # 4-7 VENDOR 1099 LIST.
Examine carefully the list of 1099's on the file. If there
are any mistakes, correct them by entering the
To print the Form 1099's, use Report # 4-8 VENDOR 1099
FORMS. You will need to experiment a bit to line up the
1099's in the printer to have them print on the correct
line. Placing the left edge of the 1099 on the left edge
of the printer carriage and the top of the sheet about
even with the top of the printer head is a good place to
begin with a dot matrix printer. This program prepares
both continuous 1099's and single page 1099's.
Type M/S/A (G)
If you are using Job Costing, enter "M" for Material, "S"
for Subcontract, or "A" for all.
An "S" in the M)aterial,D)irect,S)ubcontract field on a
Purchase Order or Accounts Payable Bill that has a Job
number will require a General Ledger account with an "S"
or an "A" entry.
An "M" in the M)aterial,D)irect,S)ubcontract field of a
Purchase Order or Accounts Payable bill that has a Job #
requires a General Ledger account with an "M" or "A" type.
If the Purchase Order or Accounts Payable Bill does not
have a Job number, you may use General Ledger accounts
with an "A" type or with no type specified.
Alternate General Ledger # (G)
When you run Report # 4-18, Financial
Statement, and you choose S for Sort, the
Accounts WITH Alternate General Ledger #'s
will be listed after the Accounts which do
not.
Note (G)
Statement # 2 (G)
Statement # 3 (G)
Periods Per Year (G)
Next Period Ending Field (G)
However, the number of periods in a year must be entered
in its proper field, the # Periods/Year field, at the
bottom right-hand of the General Ledger Accounts screen
(G) before beginning this procedure.
These periods must be set up at least one period ahead of
the current period when posting open accounts payable and
inventory value to the general ledger.
We recommend entering as a part of the initial set-up the
ending dates for each of the periods in the current year
up to the present date. The first entry to be made is the
previous year end date. For example, if setting up
accounts on a monthly basis, first enter the ending date
of the last year and then set up the monthly periods by
entering the last day of each month.
If your accounting year is the calendar year and the
current year is 1996, the first entry into this field
would be 12-31-95, the end of the previous year. Upon
pressing The next entry will be the end of the first period in the
current year, in this case 1-31-96. Repeat the process for
2-29-96 (1996 is a leap year) and so on up to the end of
the current month.
Once you have completed these entries for the first
account, the remaining accounts which you set up in the
General Ledger Accounts screen (G) will automatically
contain the same dates.
It is possible to clear these dates from the screen by
entering
Departmentalized Financial Statements
The ABC General Ledger departmentalized financial
statements are designed by structuring a chart of accounts
in which the accounts to be combined are either 100, 1,000
or 10,000 numbers apart. For example, if the combined
Income Statement account number for Sales is 501, the
account number for Sales - Hardware would be 1501 (501 +
1000) or 10501 (501 + 10000) and the account number for
Sales - Dry Goods would be 2501 or 20501. You are allowed
a total of nearly 1,000,000 accounts. Therefore, if the
corresponding account numbers are 1,000 apart, 999
departments with 999 accounts are possible. (You would use
three digit account numbers and three digit department
numbers). If they are 10,000 apart, 99 departments with
9,999 different accounts are possible! (You would use two
digit department numbers and 4 digit account numbers).
To activate the departmentalized function, two fields need
to be accessed on the # Setup Screen. To go to that
screen, press
Department Start #
This is the account number where the departmentalization
is to begin. For example, to have a combined Balance Sheet
and a departmentalization of the Income Statement, enter
the first sales number in this field. No entry is needed
if the entire statement is to be departmentalized.
Multiplier
Enter here the number of available accounts intervening
between corresponding account numbers. For example, if
combined sales is 501 and Sales - Hardware is 1501 and
Sales - Dry Goods is 2501, etc., the multiplier is 1000.
Overview of Financial Statements (G)
The two principal financial statements are the Balance
Sheet and the Income Statement (also called the Profit and
Loss Sheet). The Balance Sheet shows the net worth of a
business as of the last day of the accounting period. This
includes the assets which a business owns, the debts
(liabilities) which they owe, and the equity or the net
worth of the business. The net worth of a business equals
the assets of the enterprise minus its liabilities.
The Income Statement shows the profit or the loss of a
business during the accounting period ending on the
Balance Sheet date. The profit (or loss) is calculated by
subtracting the expenses for the period from the
corresponding revenues. The Income Statement has a basic
format, but the details vary somewhat according to the
type of business being reported. A service business such
as a tax preparation service usually has the simplest type
of Income Statement because it simply lists the revenues
and then the various categories of expenses and subtracts
the total expenses from the total revenues. A retail
organization first of all subtracts the cost of goods sold
from the sales to arrive at the Gross Profit. Then the
overhead expenses are listed and totaled and subtracted
from the Gross Profit to arrive at the Net Profit. The
Income Statement of a manufacturing concern is much like
that of a retail business except that the cost of goods
sold section is much more involved.
These descriptions of the financial statements are
generalizations. Actual statements can be much more
complex.
See the illustrations of the Balance Sheet and the Income
Statement on the following pages. A more detailed
description of both financial statements follows.
The Balance Sheet is comprised of three parts:
The ASSET Section - The Asset section shows the value of
all assets of monetary value which the business possesses.
Asset accounts are categorized into the following three
classifications.
1. CURRENT ASSETS - Current assets include cash and
other assets which are likely to be converted into
cash during the next financial year. Examples of
current assets include petty cash, cash in bank,
accounts receivable, inventory and notes receivable
which are receivable in the next year. The current
assets are generally listed in the order in which they
will be converted into cash.
2. FIXED ASSETS - Fixed assets are those assets which
will be used in the business over a period of several
years or longer. These are not written off as expenses
in the year purchased, but are rather depreciated over
the life of the asset (the most notable exception
being that land is not depreciable). Examples of fixed
assets are land, buildings, vehicles and equipment.
The value of fixed assets shown on the Balance Sheet
is usually their cost (known as book value) minus the
depreciation already claimed.
3. OTHER ASSETS - Those assets other than fixed assets
which will not be converted into cash during the next
year are referred to as other assets. An example of
other assets would be the long-term portion of notes
and bonds receivable.
The LIABILITY Section - The Liability section of the
balance sheet lists all debts owed by the company. The
liability section is usually divided into two classes as
follows:
1. CURRENT LIABILITIES - Liabilities which are due to
be paid in the next year are current liabilities.
Examples of current liabilities are accounts payable,
taxes payable and the portion of notes payable within
one year.
2. LONG-TERM LIABILITIES - Liabilities which are not
due within the next year are long-term liabilities.
Examples of long-term liabilities include the
long-term portions of notes payable, bonds payable and
mortgages payable.
The OWNER'S EQUITY Section - The Owner's Equity part of
the balance sheet shows the book value of the enterprise
and is equal to the assets minus the liabilities. It has
different names depending on the form of the business.
This section is usually named Owner's Equity for a sole
proprietorship (when only one person owns a
non-incorporated business), Partnership Equity for a
partnership and Stockholders' Equity for a corporation.
The accounts included in this section are known as the
capital accounts. If the enterprise is a sole
proprietorship, the capital account will usually show the
name of the owner (for example, John Doe, Capital). A
partnership will list the capital accounts of each partner
in the same way. A corporation will show the value of the
stock or of the various classes of stock.
The profits and losses accumulate in the Retained Earnings
account(s) for a Corporation. For sole proprietorships and
partnerships, the earnings accumulate in the owner(s)'
capital accounts. However, a year-to-date earnings account
is often used until the end of the year and then the total
earnings or losses for the year are adjusted into the
capital accounts.
On a Balance Sheet, the debits must equal the credits.
Therefore, the Assets equal the sum of the total
liabilities and the owner(s)' equity.
The Income Statement is a statement of the profit or the
loss of a business for the current accounting period. This
period is normally a year, but often the income statement
is printed on a quarterly or a monthly basis with a column
for the current period and another for the current
year-to-date. The Income Statement accounts are known as
temporary accounts because they are closed out to zero at
the end of each accounting period.
The format of the Income Statement varies according to the
type of business, whether a service, a retail, or a
manufacturing concern. See the following illustration of
the Income Statement. A more detailed description of an
Income Statement follows the illustration.
Revenue is listed in the first portion of the income
statement. Where there are several classes of revenues,
they are totaled.
The second section of an income statement is the Cost of
Goods Sold section which shows what the retailer paid for
the goods which were sold. The Cost of Goods Sold is
calculated by first adding the beginning inventory to the
merchandise purchased for resale. The sum of these two
items equals the cost of goods available for sale. The
ending inventory is then subtracted to arrive at the Cost
of Goods Sold. The ABC General Ledger makes this
adjustment by calculating the inventory change for the
period and adjusting the purchases by that amount. An
increase in inventory decreases purchases expense but a
decrease in inventory increases purchases expense.
Subtracting the Cost of Goods Sold from the Total Revenue
yields the Gross Profit. These calculations are similar
but somewhat more complex when doing cost accounting for a
manufacturing concern. A service business does not have a
cost of goods sold or a gross profit.
The third section of the Income Statement is the Operating
Expenses section. This section contains the overhead
expenses for a business and includes such expenses as
office expense, transportation expense, office heating
expense, etc. The total operating expenses are then
subtracted from the Gross Profit to arrive at the Net
Operating Income. If there is no Other Income or Expenses
section on the Income Statement, the Net Operating Income
is called the Net Income.
Sometimes the Income Statement includes a section titled
"Other Income and Expenses". This section relates to
income and expenses not related to normal operations.
Examples include "Gain or Loss from Sale of Assets" and
"Interest Income and Expenses". The income/gains and the
expenses/losses are first subtotaled individually. These
subtotals are then combined to arrive at "Total Operating
Income and Expenses". This figure is then combined with
the "Net Operating Income (Loss)" to arrive at the "Net
Income (Loss)".
This is a brief overview of the concepts involved in the
financial statements. Any questions relating to preparing
a statement according to Generally Accepted Accounting
Principals (GAAP) should be addressed to your public
accountant.
Screens Involved in General Ledger (G)
SYSTEM SETUP 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 System Setup screen 2
(&) 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 screen (L). The
Vendor Code
The Vendor Code is automatically generated when you enter
the vendor name.
Vendor Name, Attention, Street Address,
City, State, Zip, Extension
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,
press <Z>. The same information is found by pressing
FEDERAL E.I.N. (Employer Identification #)
Enter this vendor's Federal EIN. If the vendor does not
have a Federal EIN, the Social Security (FICA) number is
used when printing 1099 forms.
FICA #
Enter this vendor's Social Security (FICA) number. If the
vendor does not have a Federal EIN, this number is used
when printing 1099's.
NO 1099, INC, SUB
Enter an "I" in this field to prevent a 1099 record from
being generated for an incorporated vendor when using
Report # 4-11 to generate 1099's. 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 1099's are generated.
G/L#s
Enter the G/L numbers here separated by commas (,), that
you want to appear when you reference this vendor on the
Ledger screen (L) or the Bill Entry screen (B). For
example, you could havve the account number for Telephone
Expense appear automatically whenever you enter a check to
the code for the telephone company.
POSTED FIELDS
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 screen
(G) starting with the ending date of the last fiscal year.
For more information on setting up financial statements,
press <S>. The same information is by pressing <Shift F1>,
selecting Questions, and then option S.
G/L LEDGER SELECTION 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 setup as the main Checking
Account.
(4) to (7) are ledgers for the other four available
checking accounts.
LEDGER 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
GENERAL LEDGER REPORTS SCREEN (4)
Press <R> to page through the same information here,
report by report.
General Ledger - How to Add Account Numbers (G)
(If necessary, consult with your accountant or with
Advanced Business Computers for the proper place to insert
new G/L numbers.)
1. Press 2. Type the new G/L number. (You may type it over a
previous number.)
3. Press
4. Type the Account name.
5. Press 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
Introduction to the General Ledger (G)
This reference guide begins with a brief overview of the
general ledger package. Our general ledger program is one
independent yet integral part of a comprehensive
accounting package which has been designed to meet your
accounting needs. The first part of this overview
discusses briefly the capabilities of the General Ledger
program and explains how the general ledger relates to the
entire comprehensive accounting program.
The "Overview of Financial Statements" reviews the
accounting statements and mentions some of the accounts
which relate to each part.
"Preparing Financial Statements" shows how to set up a
chart of accounts and how to enter data in order to
achieve your goal of compiling accurate, meaningful
financial statements.
Overview of the General Ledger (G)
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 the 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.
In order to generate departmentalized financial
statements, the chart of accounts must be categorized
properly. Study carefully "Departmentalized Financial
Statements" in your manual when setting up a chart of
accounts for departmentalized statements. BE SURE TO DO
THIS BEFORE ENTERING DATA. ONCE THE ENTRIES ARE 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 There are a few places in the module where
Setting Up Financial Statements - Overview (G)
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 <D>. The same information
is found by pressing <Shift F1>, selecting Questions,
and then option D.
3. Enter the company data on the System Setup Screen.
4. Set up the chart of accounts on the General Ledger
Account screen (G).
5. Enter the beginning balances on the Adjustment
Ledger screen. (Press 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 and an Income
Statement, 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 <D> to access this information. The
same information is found by pressing <Shift F1>,
selecting Questions, and then option D.
Setting Up Financial Statements - Step # 2 (G)
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 screen (G). 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
three-digit account numbers, the number 500 would be a
good place to divide between the two statements. In
that case the first 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 System Setup
screen (#). This screen is accessed from 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 which the cumulative profits
are stored. It is a different account from the
Year-to-Date Earnings Account. After 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-the-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 for
departmentalized financial statements only. 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 the numbers 100, 1000, and 10000 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 more information on setting up departmentalized
financial statements, press <D>. The same information
is found by pressing <Shift F1>, selecting Questions,
and then option D.
Setting Up Financial Statements - Step # 4 (G)
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 "1099 Field" in your manual.
The above four are the most often used fields on the General Ledger Screen
(G). For help with the other fields, press Once you've entered all the accounts from the chart of accounts, you can begin
entering data. See "Setting up Financial Statements - Step #5", in your manual.
Setting Up Financial Statements - Step # 5 (G)
Option # 1. Computer Entries is the ledger of computer
generated entries and should normally not 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 general ledger by entering L when
in the 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)
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 screen (R).
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 are
increased by entering invoices as discussed above. They
are decreased by the cash receipts of a company. Since the
posting of 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 are 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 screen (B).
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
pre-posting is possible because the ABC 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 screen (4)
from the Selection Screen ( 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 file. 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.
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 file. 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)
To enter data from source documents, access the general
ledger by either the L option or the - option 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 1 and 8. 9 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 <H>. The
same information is found from the (*) screen by selecting
Questions, option T for "Procedures for Entry and
Editing," and then option H for "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 * 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 The program automatically assigns the codes when you enter
a code, press 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 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
If you enter a new account number, a "Look-up" screen
appears with the existing account numbers listed. You can
press WARNING! - If you leave one of the ledger entry files (-
or L) 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,
If you do not press If you are entering an entry to a vendor who has a number
of accounts listed automatically, pressing DESCRIPTION - Displays the title from the General Ledger
Accounts screen (G) 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
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 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 screen (G). You can also
access it by pressing To save your entry, press
Setting Up Financial Statements - Step # 8 (G)
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 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 also has the capabilities to
generate Form 1099's at the end of the year. For
information on generating 1099's, press <N>.
The same information is found by pressing <Shift F1>,
selecting Questions, and then option 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)
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 the ABC General Ledger, the temporary (income
statement) 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.
ERROR G01 GENERAL LEDGER ACCOUNT OUT OF BALANCE
The General Ledger is in balance when each period totaled from all
(G) accounts or consolidated accounts equals zero.
Out of balance can be caused by:
1- Ledger Close out not equal to checks & deposits monthly total
2- The distribution on check/deposit not equal to the amount
3- An amount on ledger not posted to the (G) screen Accounts
4- A (G) screen account that was deleted.
ABC Versions that allows more than one user in a ledger, Errors,
or incorrect shut off causes out of balance. The computer
attempts to correct the balance by redoing ledger closeouts and
makes sure distribution equals check amount. This may change
the checkbook balance. Ledger entries from the start to end of a
period and all point entries (.x) for a check must be within the
same date period. If it is still out of balance, use Alt R from
the (G) screen or 8-37 to repost ledgers to accounts. 8-37 does
all periods and recreates the check pointers. A backup is
recommended before doing reposting.
<L> Shows the trial balance for the previous month of the
G/L account currently on the screen.
<Ctrl C> This can be used when you want to transfer all the
information from one G/L account into another G/L account.
Load the G/L account that you want to transfer. When you
press
Enter the account number from the chart of accounts your
accountant has set up for you.
A method for organizing the Chart of accounts may be as follows:
2 Assets 400-499 Sales
3- 99 Current Assets 500-599 Cost of sales
100-199 Inventory 600-699 Other direct Costs
200-239 Fixed Assets 700-799 General & administrative
240-279 Accumulated Depreciation 800-849 Other Income
281-299 Other Assets 850-899 Other Expenses
100 Liabilities
301-340 Current Liabilities The Inventory,Sales, Cost of Sales
340-379 Longterm Liabilities should be an multiple of 100 apart
380-399 Capital Accounts from each other.
Enter the title of the account the way it is.
desired to print on the Financial Statement.
1ST LETTER: 2ND LETTER:
B-Bank Account A-Assets
O-Opening Bank Balance L-Liabilities
M-Main Heading, Form Feed S-Sales & Tot. %
N-Main Heading, No Form Feed E-Expenses
H-Heading O-Other Income
I-Centered Heading
S-Subheading
T-Total
A-Accumulate
E-End Accumulate
V-Inventory Valuation
2ND LETTER WHEN 1ST IS 'T': 2ND LETTER WHEN 1ST IS 'V':
M-Total Main Heading for use with Statement 1 only)
H-Total Heading B Bill used for Cost of Sales
S-Total Subheading R Receivable Invoice Cost
I-Total Income
E-Total Earnings
Entering a "Y" into this field will cause the cursor to
automatically stop at the Remark field when entering
amounts into this ledger account, using the (L)edger
screen. An "N" will cause the cursor to skip the Remark
field. Although not as convenient, it is still possible to
enter a Remark by striking the
An entry in this field indicates that a Form 1099 is
required for payments totaling more than a specified
amount ($600 in most cases but $10 for royalties paid and
interest paid by a bank or anyone in the business of
lending money). At the end of the year, the program has
the capability to prepare 1099's for those vendors to whom
you are required to furnish Form 1099's. Entering a number
in this field specifies the type of 1099 required.
The Internal Revenue Service requires that any taxpayer
who in the course of trade or business pays another
taxpayer over a specified amount (usually $10 or $600) for
expenses such as rent, interest, and nonemployee
compensation must issue the recipient a Form 1099 at the
end of the year and submit a copy to the Internal Revenue
Service by February 28 of the following year. Payments
made to corporations are exempt from this requirement.
Following is a list of some common expenses which require
Form 1099's if the recipient is not incorporated. This
list is not exhaustive, it is merely a list of several
common expenses.
Type of Expense 1099 Required if over Type of 1099 Required
--------------- --------------------- ---------------------
Interest
(not in the business
of lending money) $600.00 1099-INT
Interest (in the business
of lending money) $10.00 1099-INT
NONEMPLOYEE COMPENSATION $600.00 1099-MISC
EXAMPLES:
- carpentry (building repairs
or construction)
- commissions (for
nonemployees only)
- vehicle & equipment repairs
Royalties $10.00 1099-MISC
Rents $600.00 1099-MISC
Once the necessary data is entered, the program is ready
to generate 1099's. The first step is to print out Report
# 4-11, VENDOR CHECK DETAIL. When running this report, you
will be asked whether you "desire to Generate the 1099
File (Y)." Answer "Y" for yes and specify 12-31-xx for the
date. A full Vendor Check Detail Report will print either
on the screen or on the printer, depending on which option
you chose. When this report has been completed, the data
has been accumulated for the 1099's.
11 - Nonemployee Compensation (Miscellaneous Expenses)
- 1099-MISC
12 - Rent Expenses - 1099-MISC
13 - Interest Expenses - 1099-INT
ABC JOB COSTING MODULE - If you are not using the Job
Costing module, leave this field blank.
You can use this to give another number to
this Account. This gives you flex- ibility
when running Report # 4-18, Financial
Statements.
This field is provided for your use as an
information field. It places a code at the
far-left on the report which is displayed
with
This field allows you to print out your financial statement in
a different form than Statement # 1 or # 3. The same codes are
used to identify Headings, Subheadings, Totals, etc. When
Report # 4-18 (Financial Statements) is run, you are asked
which Statement, 1, 2, or 3, is desired. The code A is one
which is often used in this type of Statement. It accumulates
totals from various accounts and prints them all labeled with
one account name. This is explained on the Help Screens
(press
This field allows you to print out your financial statement in
a different form than Statement # 1 or # 2. The same codes are
used to identify Headings, Subheadings, Totals, etc. When
Report # 4-18 (Financial Statements) is run, you are asked
which Statement, 1, 2, or 3, is desired. The code A is one
which is often used in this type of Statement. It accumulates
totals from various accounts and prints them all labeled with
one account name. This is explained on the Help Screens
with the Statement 1 field.
Enter "12" if using monthly periods, "13" if using 4 week
periods, "4" if using quarterly periods, etc. This field
must be entered before beginning to enter data into the
Next Period Ending field.
This field allows you to define the ending date for
General Ledger periods.
Departmental Financial Statements are financial statements
which disclose the financial information for both the
enterprise as a whole and the individual departments of
the business. For example, a retail firm which markets
both hardware and dry goods could, with proper accounting
procedures and arrangement of accounts, generate financial
statements which disclose both the financial statements
for the individual divisions as well as an overall
financial statement. This firm would receive three
separate financial statements, one for the hardware
section, the second one for the dry goods division and a
third one for the complete business. It is also possible
to create financial statements in which only the Income
Statement is departmentalized. However, be aware that
useful departmentalized financial statements require more
detailed recordkeeping and data entry than does a standard
financial statement.
In order to organize your financial records to realize
accurate and understandable financial statements, a
rudimentary knowledge of accounting fundamentals is
necessary. A brief analysis of the financial statements
follows.
XYZ Distributors
Periods As Indicated
Balance Sheet
ASSETS
2/31/96 11/30/96 CHANGE
Current Assets
Cash - Commerce Bank 119.73 129.38 -9.65
Accounts Receivable 4123.43 3978.40 145.03
Inventory 12483.54 11659.32 824.22
-------- -------- ------
TOTAL Current Assets 16726.70 15767.10 959.60
Fixed Assets
Fixed Assets Before Depreciation
Equipment 21347.83 21178.65 169.18
Office Equipment and Fixtures 4138.87 4182.45 231.42
Buildings and Land 102456.92 102456.92 0.00
--------- --------- ------
TOTAL Fixed Assets Before Dep. 128218.62 127818.02 400.60
Less Accumulated Depreciation
Acc. Dep. -Equipment 2395.00 3129.00 -734.00
Acc. Dep. -Off.Equip/Fixtures 1159.00 1084.00 75.00
Acc. Dep. -Buildings 7084.00 6884.00 200.00
-------- --------- -------
TOTAL Accumulated Depreciation 10638.00 11097.00 -459.00
--------- --------- -------
TOTAL Fixed Assets 117580.62 116721.02 859.60
--------- --------- -------
TOTAL ASSETS 134307.32 132488.12 1819.20
========= ========= =======
LIABILITIES
Short-term Liabilities
Accounts Payable 2385.69 2673.94 -288.65
Payroll Taxes Payable 537.94 45.21 492.73
Mortgage Payable - Commerce Bank
Short Term Portion 3730.52 3648.89 81.63
-------- -------- -------
TOTAL Short-term Liabilities 6653.75 6368.04 285.71
-------- --------- -------
Long-term Liabilities
Note Payable - Jason Doe 9000.00 9000.00 0.00
Mortgage Payable-Commerce Bank 53492.74 53792.74 -300.00
-------- --------- -------
TOTAL Long-Term Liabilities 62492.74 62792.74 -300.00
-------- --------- -------
TOTAL LIABILITIES 69146.49 69160.78 -14.29
OWNER'S EQUITY
Robert Doe, Capital 52168.32 52168.32 0.00
Year-to-date Earnings 12992.51 11159.02 1833.49
--------- --------- -------
TOTAL OWNER'S EQUITY 65160.83 63327.34 1833.49
--------- --------- -------
LIABILITIES & OWNER'S EQUITY 134307.32 132488.12 1819.20
========= ========= =======
1. The Asset section 2. The Liability section
3. The Owner(s)' Equity section
Each of these is discussed below.
XYZ Retailers
Periods as Indicated
Statement of Income
12/1/96 - 12/31/96 1/1/96 - 12/31/96
Revenue
Sales 26017.31 100.00 272178.54 100.00
Cost of Goods Sold
Purchases 16122.79 61.97 168750.69 62.00
Inventory Adjustment -824.22 -3.17 -3333.95 -1.22
-------- ------- --------- -----
Total Cost of Goods Sold 15298.57 58.80 165416.74 60.78
-------- ------- --------- -----
Gross Profit 10718.74 41.20 106761.80 39.22
Operating Expenses
Depreciation 541.00 2.08 6415.00 2.36
Electricity 705.22 2.71 8235.78 3.02
Heating 305.23 1.17 1823.45 .67
Labor 5899.36 22.68 63146.89 23.20
Office Supplies 112.89 .43 1232.89 .45
Postage & Shipping 199.95 .77 2089.34 .77
Supplies 452.23 1.74 4562.84 1.68
Telephone 232.72 .89 2635.45 .97
Transportation 102.99 .40 1171.22 .43
-------- ------ --------- -----
TOTAL Operating Expenses 8551.59 32.87 91312.86 33.55
------- ------- -------- -----
Net Operating Income 2167.15 83.33 15448.94 5.67
Other Income and Expenses
Other Income
Interest Income 26.21 .10 349.25 .13
Gain on Sale of Assets 338.65 1.30 5846.14 2.15
------- ------ -------- -----
TOTAL Other Income 364.86 1.40 6195.39 2.28
Other Expenses
Interest Expense 698.52 2.68 8651.82 3.18
------- ----- -------- -----
TOTAL Other -333.66 -1.28 -2456.43 -.90
Income & Expense ------- ----- -------- -----
Net Income 1833.49 7.05 12992.51 4.77
======= ====== ======== =====
All options used to operate the General Ledger are
accessible from the Selection Screen
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
If you need additional G/L numbers, you should first print
out a copy of your Chart of Accounts. To do this, press
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.
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.
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.
LAY OUT HYPOTHETICAL BALANCE SHEET ON PAPER - Using the
sample financial statements in the manual and the advice
of your financial advisor and your ABC Accounting
representative, determine what your finished statement
should look like.
MAKE ADJUSTMENT ENTRIES - The first financial data on the
file is logically the beginning balance sheet amounts. To
access the General Ledger entry screen from the Selection
or
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 adjusting 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.
ENTER FINANCIAL DATA DIRECTLY INTO 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.
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 1
- 19), is listed under the report name in the manual or
displayed by pressing
Account # Title Entry in
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
500 REVENUE H
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
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).