This article introduces important functions, inquiries, and reports needed to maximize your use and understanding of the General Ledger Module. It focuses on the Accounting > General Ledger menu sequence. Note that some functions may also be reached from a shortcut icon on the ribbon directly below the menus.
- Navigate to Accounting > General Ledger > G/L Inquiry.
- Type the Calendar Period in MMYY format. The system will translate it to your fiscal period if it is different.
- To retrieve a list of all accounts and period end balances, click the Search button .
- To expand content, click the + to the left of the line. Several levels of detail are available (monthly, daily and individual transaction).
- To export content to Excel, right click anywhere in the active screen, and choose Export To Excel.
- To create a Trial Balance Report, click the Trial Balance button. This report provides a baseline net income or loss based on the separation of balance sheet and income statement accounts.
- Use the baseline figure to validate your financial reports (as discussed below).
- Navigate to Accounting > General Ledger > Financial Reporting.
- The G/L Financial Reporting window will appear with the Criteria tab open
- Your system is preset with a standard Balance Sheet and Income Statement. Additional reports may be added depending on individual needs.
- Choose a report by entering part of the name or using the search icon.
- Enter the Calendar Period and the system will translate it to the Fiscal Period. Note that reports may only be produced for one period at a time. You can use quarterly and annual columns to capture additional information without the need to run multiple reports.
- Choose Summary or Detail. The G/L account may be displayed or hidden.
- For users with multiple branches: Click one or more G/L Suffixes to produce branch-specific reports. Leaving the branch selection blank will provide a report of all branches.
- Click Run to produce a report on the screen. Click Print for output that may be printed, faxed, or e-mailed.
- Financial statements may be exported directly to Excel by right clicking anywhere within the grid, and then choosing Export to > Excel.
The Trial Balance indicates a profit if the value is in the credit column under the Balance Sheet section.
The same value appears on the Balance Sheet in the Net Income or Loss field in the Year to Date column.
Similarly, the value is represented in the “Net Income after Taxes” field on the Income Statement.
Note: If the YTD Net Income does not agree on the Financial Statements, as compared to the Trial Balances, the Financial Statements need to be reviewed for proper G/L Account Grouping.
There are three types of journal entries available for use. Go to Accounting > General Ledger > Journal Entry to get started.
- Regular: This is a one-time entry that will post to the selected accounting period.
- Choose Regular.
- Enter the Calendar Period and use the Tab key to advance to Reference ID.
- Click Next to assign a system number. It is recommended to use a system number to eliminate the possibility of repeating a number.
- Advance to Transaction Date and enter a date that falls within the assigned period. A warning will display if the date is outside of the period.
- Enter a Description of 30 characters or less.
- Select an account by entering part of the name or number and a dollar amount.
- Before saving, total debits and credits much match and there cannot be any blank lines.
- The entry will post immediately upon saving and a Print Document window will open. Canceling the report does not cancel the entry.
- Accrual: The system will make entries into consecutive accounting periods.
- Follow the instructions above but choose type Accrual.
- The system will make the prescribed entry in the selected period, followed by an auto reversal in the next period.
- Template: The use of a template for frequent and cumbersome entries can save time and prevent keystroke errors by holding account numbers and dollar amounts.
- Navigate to Accounting > General Ledger > Journal Template and select New.
- Enter a Template name and description.
- Enter account numbers with dollar amounts for recurring items such as rent and depreciation. Enter accounts without amounts for items such as payroll.
- Click Save before exiting.
- Post the template in Accounting > General Ledger > Journal Entry. Choose the template immediately after assigning a reference number.
- Streamlined Excel Import: Save even more time by using a pre-existing Excel sheet to import the entries. The data must be presented in Excel as shown below:
- Follow the instructions to begin a regular journal entry.
- Copy the content from the Excel sheet to place in the active clipboard.
- Position the mouse in the G/L Account field and right click to paste the entry. If there are any errors or blank lines, the system will indicate before allowing to post.
- Go to Accounting > General Ledger > G/L Account.
- Click New to add an account.
- Enter the account number, keeping in mind the correct order of accounts and branch structure.
- Assign the account to one or more G/L Groups for placement on the appropriate financial report.
- Balance Sheet accounts (numbered lower than the P&L Break account) require one category.
- Income Statement accounts (numbered higher than the P&L Break Account) require one category plus the “Income Summary” Group
- Click Save when finished and the account is ready to use.
- To change the description or grouping of an account click Edit. Note that an account number cannot be changed once established.
- To delete an unused account click Edit followed by Delete. Note that accounts with any history cannot be deleted.
Inform uses 9 distinct transaction source codes to identify the type of process that generated a financial impact. Each source code is easily identified and filtered through the G/L Inquiry screen.
The General Ledger impact of a source code may be substantiated with a Journal report available in Accounting > End of Month Closings & Journals.
Every transaction will post opposing debits and credits within the same source code to keep the General Ledger in balance.
- Accounts Payable Journal: items entered for payment to vendors and non-vendors
- Finance Charge Journal: monthly finance charges assessed to customers
- Cash Disbursements Journal: checks produced for payment of liabilities
- Cash Receipts Journal: customer account receipts and adjustments, non customer cash receipts
- Inventory Control Journal: stock transfers, adjustments, physical counts and cost changes
- Inventory Receipts: receipt of purchase-ordered items into stock
- General Journal: journal entries and calculation of net earnings
- Sales Journal: sales revenue, cost of sales and sales tax liabilities
- Warranty Claim Journal: submission of claims to merchandise vendors
Following is a sample of Journal Reports available for the above source codes in Accounting > End of Month Closing & Journals.