This chapter contains the following topics:
Before getting started, ensure that the General Ledger software is installed on your computer. Refer to the PBS Release documentation to install PBS before proceeding.
Also, you may want to familiarized yourself with the main features of this module by reading the Understanding General Ledger chapter in this documentation.
You should consult with your accountant before using PBS software. Your accountant should be familiar with your accounting software, and can advise you on converting from your existing G/L system.
Before you use the General Ledger module, you enter information about your General Ledger system and how you want your transactions handled.
There are several different data files/tables which you enter before you can begin using the module on a regular basis. Here is a brief explanation of these:
This contains basic information about your company. If you are using multiple companies, there is a Company information menu selection for each company. In this, you specify information such as your company’s name and address, your account number structure, printers and more.
This contains a number of parameters which define your general ledger structure. Each parameter defines specific values to be used in other selections.
With this, you define the starting and ending dates of your accounting periods. Although most independent businesses use the 12 calendar months as their 12 accounting periods, you can define as few as one or as many as 13 accounting periods here. You also specify a reporting period which is used in printing various reports and statements. It can be the same or different from your current entry period.
This contains a list of all your G/L accounts. In addition to account numbers and descriptions, you may enter budgets and last year comparative figures in here. (The use of budgets and comparatives is optional.) You also use this to define any subaccounts you are using.
Although this data is regularly used on a day-to-day basis after the initial set-up procedure, it is also used during initial steps to make a beginning balance entry for each of your accounts.
This contains any entries which recur each accounting period. (By storing recurring entries on the disk, you avoid having to enter them anew each accounting period.)
This contains subaccount groups. Each subaccount group is a set of subaccounts which you group together for reporting purposes. Use of subaccount groups is optional.
In this file you custom-design and store the layouts (formats) of your financial statements.
You enter into this file any pieces of text (such as instructions, explanations, footnotes, etc.), that are to be printed on your financial statements.
Use this file to enter additional instructions for printing your financial statements. For example, instructions are stored in this file to direct whether to show budgets or comparative figures on any or all financial statements.
Perform these steps to start using General Ledger:
|
Step |
Description |
|
1 |
Study chapters 1 through 4 in the System User documentation. These chapters explain the general system features that are in all the modules. |
|
2 |
Start G/L according to the instructions in the Using General Ledger chapter. |
|
3 |
Company information, found on the CTL menu, is set up for you as part of the installation procedure. Use the Company information menu selection to modify the data to be appropriate for your company (refer to the Company Information chapter in the PBS Administration documentation. |
|
4 |
If you are using cost centers or sub accounts per your Company information setup, enter them using the CTL Cost centers / Sub accounts menu. |
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5 |
Define your accounting periods using Accounting periods. Refer to the Accounting Periods chapter. |
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6 |
Enter G/L controls using Control Information. The data in the G/L Control information controls how G/L is used by your company. |
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7 |
Set up your Chart of Accounts. You may auto-enter the Valid G/L accounts at the same time if the G/L Control information Update Valid G/L accounts when adding/changing G/L accounts field is checked.
If you are adding the G/L module after other modules are in use, you may load accounts from the Valid G/L Accounts into the Chart of Accounts as described in the Set-up Procedures chapter. If other modules are not already in use (or you do not wish to load the Chart of Accounts from Valid G/L Accounts), enter your Chart of Accounts using the Chart of accounts menu selection (described in the Chart of Accounts chapter). |
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8 |
In setting up your Chart of Accounts, you may choose to enter budgets (for the current fiscal year) and comparative account information for the previous fiscal year. If you do not enter this information, you will not be able to print financial statements which show budgets and comparatives during the initial fiscal year in which you are using the software. |
|
9 |
When you close the fiscal year, the software will store account balances from the year being closed as the comparatives for the new year. Additionally, you can set budgets based on these comparatives. Thus, even if you do not enter budgets and comparatives now, you will be able to print financial statements in the next fiscal year which show budgets and comparatives, since the software will generate this information for you when the current fiscal year is closed. |
|
10 |
Set up beginning balances for your balance sheet accounts using Set beginning balances (described in the Set-up Procedures chapter). In order to use this procedure, you must first enter comparatives for each balance sheet account. If you have chosen not to enter comparatives, this function will not work correctly. |
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11 |
If you do not use Set beginning balances to set up beginning balances, use General Journal to enter the beginning balances. |
|
12 |
Enter a debit or credit for each balance sheet account (with a reference of BBF for balance brought forward). These entries should be dated on the last day of the previous fiscal year. These entries correspond to your final balance sheet for the previous fiscal year. |
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13 |
If you are setting up G/L as of the beginning of your fiscal year, no other journal entries need to be made. However, if you are setting up G/L during the fiscal year, you must make journal entries to bring G/L up-to-date with your manual ledger. In this case, you would enter a debit or credit for each account for each period which you have already completed in the current fiscal year. The debit or credit entered would be the net change for that account for that period. For example, if your cash account increased by $1,000.00 as of the end of the first period, you would debit cash for $1,000.00 with an entry dated on the last date of the first period. |
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14 |
For the current period, you would enter a debit or credit for each account which summarizes the net change to that account for the current period. |
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15 |
A quicker way to bring G/L up-to-date is to make a single entry which summarizes the net change to each account from the beginning of the fiscal year up to the current date in the current accounting period. However, if you do this, the software will not be able to generate budgets and comparatives for all accounting periods when you close this fiscal year. This is because you will not have entered enough information for the computer to determine the ending balance for each account for each period that has already been completed in the current fiscal year. |
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16 |
Set up the standard journal, using Standard journal. This journal is for debits and credits which are made each accounting period and is described in the Standard Journal chapter. |
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17 |
Set up the recurring journal, using Recurring journal. This journal is for debits and credits which occur periodically (but not necessarily just once each accounting period.) This journal can also be used to set up allocations to accounts on a percentage basis (refer to the Recurring Journal chapter). |
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18 |
Enter text that will be used on financial statement layouts using Texts (described in the Texts chapter). |
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19 |
Enter Financial Statement Layouts for your Profit and Loss Statement, Balance Sheet Statement, and supporting schedules for each, as needed. Financial Statement Layout entry is described in the Financial Statement Layouts chapter. Extract financial statements provides an export of the Profit and Loss Statement, Balance Sheet Statement, supporting schedules or any type of data you want to pull from the General Ledger transaction file. Designing a layout is described in the Extract Financial Data Layouts chapter. |
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20 |
If you want to print financial statements for sets of cost centers or subaccounts, enter each set as a cost center or subaccount group using Sub-accnt / Cst cntr groups, (described in the Cost Center and Subaccount Groups chapter). |
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21 |
Enter Statement Specifications using Financial statement specifications. These specifications are used to control the sequence in which financial statements are printed and to specify whether budgets, comparatives, or ratios are to be printed on the financial statements. Additionally, you may specify whether the financial statement is to be printed for all subaccounts, a single subaccount, or for a set of subaccounts as defined by a subaccount group. See the Build Financial Statement Layouts chapter. Similar to the Financial statement specifications, you may also generate a CSV output for financial statements. See the Extract Financial Data Layouts chapter. |
|
22 |
If you are using multiple companies and need to print consolidated financial statements, set-up your consolidation company (described in the Company Consolidation chapter). |
Now you are ready to use General Ledger on a daily basis. For using General Ledger, read the Regular Use section below. Also see the Guide to Daily Operations chapter.
When you have finished building your data as above, you will be ready to use G/L on a regular basis. The remaining chapters in this documentation show you how to:
| • | View G/L account activity |
| • | Print the G/L Trial Balance and worksheet reports |
| • | Print the financial statements |
| • | Extract financial data |
| • | Summarize the G/L transactions |
| • | Perform the year end procedures |
| • | Get distributions from other modules |
| • | Consolidate multiple companies for summarized reports |
| • | As needed calculate loan payments |
| • | Print reports from disk |
Appendix A Handling Periodic Inventory describes procedures to follow so that, if you are keeping your inventory by the periodic method, your inventory and the cost of goods sold will appear correctly on a Profit and Loss Statement.
Appendix B Sample Reports contains examples of G/L reports.
Appendix C tells you how to convert G/L data from previous years when the previous RealWorld or PBS system only stored one year at a time.
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Support
PBS User documentation and on-line “Help” messages are designed to enable you to use the Passport Business Solutions software without additional help. However, if problems or questions arise which you cannot resolve using these materials, additional assistance may be available from your Passport Business Solutions supplier or an independent professional in your area.
If you have unresolved issues with your Passport Business Solutions software, contact your PBS partner or an authorized Passport Business Solutions consultant for support.
For the name and location of a PBS partner near you, contact Passport Software at 847-729-7900.
If you wish to receive support directly from Passport Software, Inc., please call 847-729-7900 to discuss the options.
It is often found that PBS users are not aware of some or many features that are available on their system. Not all features may apply to your business. Reading the documentation is a way to understanding and ultimately using the features that will help in running your business. Set aside some time on a regular basis to read a new section in the modules that you are using.
Never go beyond a word you do not understand. In most PBS documents there is a section called Introduction to xxxx with xxxx being the name of the module. In this section there are some definitions to words specific to PBS, computers and accounting. Also, in the System documentation there is a Glossary of Terms appendix with many words defined. For words not included, it is highly recommended that you have a good dictionary available for looking up words that you do not understand.
Training is another way of understanding the system. Call your Passport Business Solutions reseller for training. If your reseller does not offer training other options are available. Contact Passport Software, Inc. at 847-729-7900 for the name of a qualified trainer in your area or training directly from Passport.