functional training gl

8/3/2019 Functional Training GL

1/53

General Ledger

Instructor: MANISH CHAUHAN


2/53

Objectives

To enable you to:

Carry out the core configuration of the General Ledger

Understand the core business processes within GL.


3/53

Contents

Setting up a Company

Multiple Locations & Responsibility Centres

Accounting Year/Period

GL Set Up

Chart of Accounts Journal Entry System

Bank Management

Dimensions

Budgets

Account Schedules Multi Currencies

Account Closing

Consolidation


4/53

General Ledger

What is GL?


5/53

General Ledger

The General Ledger is the central repository and ultimate destinationfor all transactions occurring in the organization in the form ofcorporate financial information.

The main purpose of a general ledger system is to collect information

through the chart of accounts and prepare financial & managementreports from it.


6/53

General Ledger

The main activities carried in General Ledger are:

Capturing transactions in General Ledger and processing them

Incorporating transactions from other applications integrated withGeneral Ledger, and processing them.

To be able to carry out these activities the it is essential to create masterinformation.


7/53

Sequence of Data Entry for Masters

Company Set Up

Financial Years & Periods

Chart of Accounts

Bank Details

Dimensions, to capture additional information


8/53

Setting up of a Company

Company specific information in the General Ledger setup.

In the Company Information window, you set up a company's generalinformation. The program uses this information to print companyinformation on document headers.

General tab- name and address details Communication tab- communication details

Payments tab- primary bank.

Shipping tab- ship-to address that will appear on all purchase orders.Location Code- default delivery location when you purchase items.


9/53

Multi Location

Location is defined as a physical place where items are produced,handled and stored before being sold.

Eg.

a production plant

warehouse

a distribution center

Address information held on the location card will be printed on thepurchase documents to notify vendors which locations they should

ship the ordered items to.


10/53

Responsibility Centre

A responsibility center can be a cost center, a profit center or aninvestment center.

Eg.

Sales Office,Purchasing Department for several locations,

and a Plant Planning Office.

You set up responsibility centers to help administer your business.For example, a responsibility center can administer sales and

purchases for one or more warehouses or distribution centers, wheregoods are handled and stored prior to use.

The functionality provides the ability to tie a user to a responsibilitycenter so that only sales and purchase documents related to theparticular user are displayed.


11/53

Base Calender

Set up calendars with working and non-working days.

A base calendar can be assigned to Customers, Vendors, Locations,Company, Shipping Agent Services and to the Service ManagementSetup. It is possible to add changes to the base calendar for each of

the above-mentioned. The calendar entries will be used in the date calculations on Sales

orders, Purchase orders, Transfer orders, Production orders, Serviceorders and in the Requisition Worksheet and Planning Worksheet.


12/53

Accounting Years & Periods

Define any starting date for the fiscal year and specify your ownaccounting periods with an unlimited number of periods of anyduration.

Use filters to view and print financial data across periods, regardless

of starting and closing dates. The program does not limit data entry. Even if a period is closed, data

entry is allowed. The entry will be marked as a "prior period entry."Because there are no "hard close" or "buckets," the program is datesensitive and will allow you to make entries into any of the existingperiods.


13/53

General Ledger Set Up

You use the General Ledger Setup window to enter information abouthow you want to handle certain accounting issues in your company.

You can control the date range that all users can use for posting bycompleting the Allow Posting From and Allow Posting To fields to

allow specific entries to be posted. Number series used to assign numbers to bank accounts.

Select the two global dimensions that you will use the most frequentlyin your reports. You can also select your shortcut dimensions. Theprogram automatically creates first two shortcut dimensions using theGlobal Dimensions.

You can specify the currency that will be used as an additionalreporting currency in the General Ledger application area. Thisenables you to print reports in either LCY or the additional reportingcurrency.


14/53


Invoicing Rounding

When creating invoices, it may be necessary to round invoiceamounts. Local regulations or local custom may require theinvoice to be rounded in a specific way (for example, to an

amount divisible by 0.05).

When the program rounds an invoice, it inserts an extra linewith the rounding amount and posts this line along with theother invoice lines.

Here you can specify the size of the interval to be used whenrounding amounts in your local currency.


15/53


Payment Tolerance

Variation which will be permitted when transactions are posted.

The variation limit can be an absolute amount or percentagewhichever is lower.

Specify a default tolerance posting method.

a special GL account set for tolerance

tolerance amount posted as a payment discount

posted as a remaining amount


16/53

Chart of Accounts

The core of a company is the chart of accounts, that is, the list of theG/L accounts to which all G/L entries are posted. You use the Chart ofAccounts window to enter and view your G/L accounts and accountbalances. The drilldown features in the program allow you to see the

ledger entries that make up the balance of an account. You create the chart of accounts in the same way you create new G/L

accounts. You can set up new G/L accounts in the Chart of Accountswindow (displayed below) or in the G/L Account Card window.


17/53

Chart of Accounts

No. field - maximum of 20 alpha-numeric numbers.

Name field 30 characters or less.

Income/Balance field important in determining what accounts will beclosed at the fiscal year end.

Debit/Credit field - to determine the normal type of transactions thatare made to this account.

Account Type identifies purpose of the account

Reconciliation Account - G/L account included in the Reconciliationwindow to reconcile the accounts being posted to in the journal.

Automatic Ext. Texts field text description that will be added to salesand purchase documents.

Direct Posting field This field indicates if it is allowed to post directlyinto this account from a journal line.


18/53

Posting Groups

If you use other application areas in addition to General Ledger andtherefore post to accounts such as Customers, Vendors, Items orResources you need to set up a link between these accounts and theG/L accounts.

There are two major types of posting groups that deal with sellinginventory and resources to customers and buying inventory fromvendors:

Specific Posting Groups

General Posting Groups.


19/53

Specific Posting Group

The primary purpose for Specific Posting Groups is to identify theprimary Balance Sheet Account for each supporting Ledger. Forinstance, the total outstanding accounts receivable balance of all ofthe customers should tie to the total balance of the AccountsReceivable accounts in the Balance Sheet. Therefore, specific postinggroups are assigned to Customers, Vendors, Items, Bank Accounts,and Fixed Assets. These posting groups create the direct link to theprimary Balance Sheet Account for each Master Item.


20/53

General Posting Group

There are two kinds of General Posting Groups:

General Business Posting Group specifying who we sell to(Customers) and who we buy from (Vendors).

General Product Posting Group specifying, what we sell (Items

and Resources) or what we buy (Items).


21/53

General Business Posting group

When setting up business groups, you must consider how manygroups you need for breaking down sales by customers and howmany groups you need for breaking down purchases by vendors.

The business groups can be set up to group customers and vendors

by geographical area or type of business.


22/53

General Product Posting group

The Product Posting Groups as shown above are broken down intoRaw Materials, Retail, Resources, Capacities, Miscellaneous with VATand Miscellaneous without VAT.

The Product Posting Groups provide the major product groups that

will be reflected in the Chart of Accounts. Each Inventory Item and Resource set will be assigned a Product

Posting Group.


23/53

General Posting Set Up

The General Posting Setup window is a matrix that combines businessand product posting groups.

With each combination the user can determine to which accounts theprogram will post.

As a result, it is possible to post the sale of the same item to differentsales accounts in the G/L due to customers being assigned differentbusiness posting groups.


24/53

Indent Function

Used to format the Total, Begin-Total and End-Total fields and toindent accounts according to the defined hierarchy.

The hierarchy is established using the account types Begin-TotalandEnd-Total.

Account numbers between these will be included in the end-totalrange in the Totaling field.


25/53

Journal Entry System


26/53

Journal Template

Journals are typically used for different types or groups of entries,such as purchases, payments, sales and receivables. Each journaltype is set up with its own journal template.

The various journal templates can be chosen from four of the

application areas: General Ledger: General Journals

Sales & Receivables: Sales Journals, Cash Receipt Journals

Purchases & Payables: Purchase Journals, Payment Journals

Fixed Assets: FA G/L Journals

Journal templates provide the basic journal structure where you can

specify default settings and information for all batches created usingthe template.


27/53

Journal Batch

Journal Batches are created based on the journal templates. Alljournal batches created from a specific template will have the samestructure, default settings and information defined in the template.

However, as these settings are only defaults, it is possible to change

them for a specific journal batch. Batches are typically used to separate one user's entries from another

or it could be for a specific voucher type.


28/53

General Journal

Use your general journals to post to g/l accounts, bank accounts,customer accounts and so on:

Set up and unlimited number of journal batches, for example, per useror for specific purposes.

Define rules for each individual batch, for example, you can assign adefault balancing account .

Force documents to balance for each document type and documentnumber before a journal can be posted.

Print a test report that highlights any corrections that need to be madebefore posting the journal.

Present your journals as you please. Using the Show/Hide function,you can select which fields are shown in the journal window.


29/53

Source Code

Source Codes are used to assist the user in finding the point of originfor an entry (audit trails).

Source codes are assigned to transactions. Each journal can have asource code

Apart from the system defaults, as new journals or data entry pointsare added, then a source code should be added as well to identifywhere the transaction originated.

Entries are created when journals and invoices are posted and whencertain batch jobs are executed.

There is a specific source code for each posting type and batch job,and it is assigned when individual entries are created.


30/53

Reason Codes

Reason Codes are used to explain why an entry exists.

For example, if you must return items from a sale you can set up areason code to denote the reason such as damaged, wrong color,wrong size, etc.

After you set up reason codes, you can add the reason code field tothe journal or other window.


31/53

Number Series

You use the No. Series window to set up all the number series thatyou will use for your company.

In the setup table for each application area and in the journaltemplates, you specify which No. Series will be used for which

purpose. First, you enter a code that is meaningful or relevant for your

business, and then give the code a description. The program fills inthe Starting No. field and Ending No. field with the information set upin the Number Series Line table.

The Last Date Used and Last No. Used fields are filled in automatically

by the program, when you start using the No. Series.

In the Default Nos. field, you indicate whether or not this numberseries will be used to assign numbers automatically.


32/53

Number Series

A check mark in the Manual Nos. field indicates that you can enternumbers manually instead of using the number series. A check markin this field has no effect for number series used in journals.

A check mark in the Date Order field indicates that numbers from this

range are to be assigned chronologically. In other words, if you placea check mark here, the program will run a test at the time of posting tomake sure documents and journal lines are assigned numbers inascending order according to the posting date.


33/53

Projected Cash Flow

The "Receivables-Payables" column in the Chart of Accounts screenprovides a summary of expected net operational cash flow fromcustomers and vendors over time.

It is simply a summary of the open customer and vendor ledger

entries sorted by their Due Date instead of Posting Date. You can specify the period you wish to view, such as daily, monthly,

quarterly and so on.

If you wish to see the expected net balance of outstanding customerand vendor balances at any particular date, you should choose theBalance at Date view.

If you wish to see the expected cash flow movement for a particularperiod, you should choose the Net Change view.


34/53

Bank Management

Manage an unlimited number of bank accounts in both local andforeign currencies.

Cheque Writing with unique number series for each bank account.

An already printed check can be voided or reprinted.

You can specify on the journal line whether you want the payment tobe made with a computer check or a manual check.

BRS (Bank Reconciliation system) enables you to reconcile your bankaccounts in Navision Attain with the banks statements.

You can apply amounts from your bank account ledger to the

reconciliation form and keep track of all bank statements.


35/53

Dimensions

A dimension is data that you can add to an entry as a kind of marker

so that the program can group entries with similar characteristics and

easily retrieve these groups for analysis purposes.

Dimensions can be used throughout the program on entries in

journals and documents, as well as budgets. Define an unlimited number of dimensions and dimension values at

any time. Name dimensions as you please, so that your dimensions setup

reflects the specific needs of your company at all times. Add new dimensions without disrupting your accounts structure in

any way because: You set up dimensions and dimension values in their own tables.

Their underlying values are independent of your chart of accounts.


36/53

Dimension Hierarchies

Set up dimension value hierarchies to reflect your reporting andaccounting needs because:

The intuitive hierarchy setup closely resembles the setup procedurefor your chart of accounts

You can include totaling values and formulas that allow an unlimitedcategory tree.

You can filter data to obtain the level of dimensions information yourequire.

Maintain dimension value hierarchies independently of your chart ofaccounts.

You can maintain a highly detailed reporting and accounting hierarchywithout having to create and manage a cumbersome range ofaccounts and sub accounts.


37/53

Dimension Rules

Defaults: apply default dimensions to specific accounts, groups ofaccounts, or entire account types. You can set up defaults as eithersuggested or mandatory.

Combinations: define how dimensions and dimension values may or

may not be combined in journals and documents. You can definecombinations at the dimension or dimension value level. For example,some salespeople may be excluded from using certain customer-segment dimension values. This helps ensure that policy decisionsmade in your company are also reflected in your accounts.

Prioritization: define prioritization of account types when an account

and a balancing account suggest conflicting default dimension valuesfor the same dimension.

Blocking: block and unblock dimensions and dimension values fromuse depending on whether the dimension or value is still required(with regard to seasonal variations, campaigns, and so on).


38/53

Dimension Input

Define up to eight shortcut dimensions for use throughout theapplication.

Shortcut dimensions are dimension fields that can be shown or hiddenon journal and document lines to make the input of dimensions data

as straightforward as possible.

Shortcut dimensions can easily be switched or replaced to include newdimensions and accommodate new needs.

Enter all other dimensions data in a separate Dimensions windowusing a conveniently located button on all journals and documents.

Use defaults to reduce manual data entry and ensure that the desireddimensions data is always posted.


39/53

Dimensions on GL entries

Define two global dimensions for use throughout the program.

Use these global dimensions to view and filter all G/L entries in theGeneral Ledger Entries window.

For non-global dimensions, you can filter G/L entries using the

analysis view.


40/53

Analysis Views

Use analysis views to investigate relationships and monitorperformance. You can define and name as many analysis views as youwish.

Gather and view posted G/L entries for immediate analysis by

attributing characteristics to the information you record in your dailywork.

Make general analysis much easier to understand by compressinganalysis view entries so you see only totals (based on a vast numberof G/L entries).

Sort and gather all G/L entries with at least one of up to four

dimensions specified for each analysis view. For example, you mightcreate an analysis view that gathers all G/L entries for departmentsoperating in specific geographic areas, excluding those entriesrelating to a particular sales campaign.


41/53

Analysis Views

Update the GL entries included in an analysis view manually to gathernew G/L entries posted since the last update, retain saved versions ofan analysis view without new updates, or have the program update ananalysis view each time a G/L entry with the specified attributes isposted.

Present the contents of an analysis view in a matrix form in theAnalysis by Dimensions window.

Uncover the factors involved in creating particular results orrelationships. You can drill down from analysis view entry totals toeach individual analysis view entry, and then further still to the

specific G/L entries that comprise a particular analysis view entry.


42/53

Budgets

Once you have created a budget, you can print a balance compared tothe budget showing variances by percentages.

You can work with several budgets.

Budgets are normally entered per period for the relevant G/L

accounts. You can create, copy and work with any number of budgets at the

same time.

You can work with, for example, a 100% budget, a 110% budget, andso on.

Budget Follow Up through GL Balance/Budget Window.


43/53

Budget by Dimensions

Attach an infinite number of dimensions to each budget entry. Filter your budget by up to four dimensions in order to:

Create very specific sub-budgets (within an overall budget), such asa sales budget for a particular customer target group per department

over a specified period. Compare G/L entries and budget entries by dimensions using theAnalysis by Dimensions window.


44/53

Account Schedule

Used for financials reporting.

You can arrange reports based on the figures in the chart of accountsand budgets, but with a different arrangement of financial figures,texts or detail than in the chart of accounts.

The Account Schedules granule is like a filter for the chart of accountsthat enables you to choose the accounts that you want to include (ornot include).

You can also use it to change the order of the accounts or combinethe figures in various ways, and you can set up which columns toprint.

In addition, it is possible to make simple calculations.


45/53

Recurring Journals

Use recurring journals for frequent transactions, whether they are offixed or variable amounts.

You can also set an expiry date for when a series of recurring postsshould end.


46/53

Allocations

Allocate general ledger entries to combinations of accounts,departments and projects using allocation keys.

The allocation keys can be based on amount, percentage or quantity.

Allocations can be used for many purposes, for example, when

allocating overhead (such as rent) to company profit centers.


47/53

Multiple Currencies

Define an unlimited number of currencies and add or delete currenciesat any time.

Handle the way in which foreign currency amounts are rounded andposted to the database.

Define rounding precision for amounts, invoice amounts, unitamounts and application amounts. Determine how amounts are shown on screen by specifying how

many decimal places should be presented for an amount. Definedecimal places for amounts and unit amounts.


48/53

Exchange Rates

Define periods for specified exchange rates. A period can be as shortas one day.

Set up relational exchange rates in the format applicable in yourcountry.

Define specific exchange rates for daily transactions and specificexchange rates for the adjustment of balance sheet accounts. Run a batch job to take account of adjustments to exchange rates in a

specified period. Adjust customer, vendor and bank accounts and specify that the

program make adjustments to G/L accounts that use an additional

reporting currency. Maintain a full record of exchange-rateadjustments.

Compare rates and post corrections to previous postings usingaccurate historical exchange rates.


49/53

Additional Reporting Currency

Maintain general ledger in two different currencies so you can viewbalances online and print financial reports for two currenciessimultaneously.

Use an additional reporting currency in order to operate and report toauthorities as needed.

Maintain a foreign currency as your base currency to align youraccounts with the currency used by corporate headquarters.


50/53

Annual Closing

Close Financial Year

Transfer income statement balances to your balance sheet with easeusing the Close Income Statement

Closing entries can be created per business unit, department code

and/or project code or per G/L account, and are retained by theprogram in a specified journal for scrutiny before posting. The batch job can be carried out as many times as necessary so you

can make corrections to your income statement even after transferringbalances to your balance sheet.

Securely close your fiscal year while retaining the flexibility to ensure

correct accounting data. Post prior-year entries and adjusting entries even though a fiscal year

is closed. Both entry types are marked, making them easy to view andfilter on.


51/53


52/53

Consolidation


53/53

Change Log

Enables you to log user changes made to Navision Attain master data.

It is possible to log all direct modifications a user makes to the data inthe database, except changes to working documents such asjournals and sales and purchase orders. The change log functionalitymakes it possible to get a chronological list of all changes to any fieldin any table (except the above mentioned) and to see who (what userID) made the changes.

functional training gl

Documents