General Ledger - Local Government Corporation

Report
Flexgen
General Ledger
for Beginners
Class Purpose
• Intended for the person who has little experience using
LGC’s Flexgen Accounting software
• To demonstrate how to get important financial reports
from the Accounting software
• Indentify errors to look for on financial reports
• Review method of creating and posting manual
transactions
Highlights
• What is the General Ledger?
• How other FlexGen processes affect the GL
• GL Reports that shouldn’t be ignored
• Manual Transactions
• Check Reconciliation
• Month End
What is my General Ledger?
• A general ledger is a set of accounts used to
track all financial transactions.
• The main purpose of the general ledger is to hold
financial information from posted transactions to
generate financial reports.
•How does the General Ledger affect
YOU?
General Ledger
Entries will be made to the ledger during payroll and will be
paid out during the purchasing process. All work done in
these two systems have a bearing on your general ledger.
General
Ledger
Payroll
Entries will be made to the ledger during
payroll. Any general ledger account
number changes that are made or pickup
of new deductions may need to involve one
or both of the other departments.
Purchasing
This department is responsible for balancing
the monies withheld to what the vendor is
requesting payment for. If there are
differences then one or both of the other
departments may need to be involved.
Highlights
• What is my General Ledger?
• How other FlexGen processes affect the General Ledger
• GL Reports you shouldn’t ignore
• Manual Transactions
• Check Reconciliation
• Month End
General Ledger - Reports
From the list of Standard Reports use “Page Up”
button or “Page Down” button to highlight desired
report. Then Select [F4] to execute the report.
Balance Sheet - Assets
Asset Account function numbers begin with a 1
Asset Accounts Include
 Bank Accounts
 Receivables
 Investment Accounts
 Due from other funds
 Prepaid Expenses
Asset Accounts
 Carry a Positive or Debit balance
 A Debit increases ending balance
 A Credit decreases ending balance
Balance Sheet - Liabilities
Liability Account function numbers begin with a 2
Liability Accounts Include  Unpaid Payroll deductions
 Due To Other Funds
 Payables
 Short Term Debt
Liability Accounts
 Carry a Negative or Credit balance
 A Credit increase ending balance
 A Debit decreases ending balance
Balance Sheet - Equities
Equity Account function numbers begin with a 3
Equity Accounts Include
 Reserves
 Fund Balance Accounts
Equity Accounts
 Carry a negative or Credit balance
 A credit increases ending balance
 A debit decreases ending balance
EXCEPTION: City Equity Accounts are included with Liabilities
General Ledger – Balance Sheet
Account 14500 is a Consolidated Account for YTD Expenditures
Account 28500 is a Consolidated Account for YTD Revenues
General Ledger – Balance Sheet
34110-Total outstanding Current Year PO’s
34120 – Total outstanding Prior Year PO’s
39000 – Total Budget (BG) entries made to Undesignated Fund Balance
At Year End
Total Revenues are reversed thru UFB (Debited)
Total Expenditures are reversed thru UFB (Credited)
The Difference remains in Undesignated Fund Balance
In short, Revenue and Expenditure accounts are
Temporary accounts that are eventually rolled into
the Fund Balance at Year-End.
A Problem Balance Sheet
Assets DO NOT normally
have a credit balance
Liabilities DO NOT normally
have a debit balance
How do I fix my problem
balance sheet?
Account Analysis
The Account Analysis report will show ALL entries that have affected an account based on
report criteria entered. By reviewing all transactions, potential errors can be revealed.
Account Analysis reports can be generated by
specific order. This example is by Date order.
Account Analysis
Statement of Revenue
Revenue Account function numbers for counties begin with a 4
Revenue Account function numbers for cities begin with a 3
Revenue Accounts Include
Tax Levies
Sales of Assets
Charges for Services
Fund Transfers In
Revenue Accounts
Carry a negative or credit balance
A credit increases ending balance
A debit decreases ending balance
Statement of Revenue
Reading the Report
• Original Estimate and Amended budgeted amounts
•
•
•
•
•
Total Estimated Budget
Year-to-Date Realized
Percent Realized
Unrealized
Current Revenue
Statement of Expenditure & Encumbrances
Expenditure Account function numbers begin with 5-9 in counties.
Expenditure Account function numbers begin with 4-9 in cities.
Expenditure Accounts Include
 Purchases made
 Wages Paid
 Capital Outlays
 Fund Transfers Out
Expenditure Accounts
 Carry a Positive or Debit balance
 A Debit increase ending balance
 A Credit decreases ending balance
 Helpful in controlling the expenses incurred on a daily, monthly, and annual basis
 Three types of reports: Standard – Summarized – by object
 Very useful when budgeting
State of Expenditures & Encumbrances
Reading the Report
•
•
•
•
•
Original Appropriations and Amendments
Total Appropriations
YTD Expenditures and YTD Encumbrances
Unencumbered Balance and Percent Used
Current Month Expenditures and Encumbrances
State of Expenditures & Encumbrances
Over Expenditure?
Highlights
• What is my General Ledger?
• How other FlexGen processes affect the General Ledger
• GL Reports you shouldn’t ignore
• Manual Transactions
• Bank Reconciliation
• Month End
Manual Transactions
A Manual Transaction is a transaction that is not generated by another
process within the software. The user manually enters GL account
numbers and debits and credits.
From the main menu, choose Accounting
Within the Accounting Menu, choose
“Manual Transaction”
Transaction Types
Within the Transaction
Maintenance Menu Choose
Transaction Type.
Note: to choose the desired transaction type, you can use the arrow
keys on your keyboard or type the corresponding letter associated with
the transaction type.
Creating a Manual Transaction
Transaction Type: This will default based
on what is chosen on previous screen.
Creating a Manual Transaction
Fund: Type fund number or Look Up F2
and choose fund number.
Note: You can only post transaction for the fund selected.
Creating a Manual Transaction
Transaction Number: Enter the transaction
number or enter through to allow the
system to assign the transaction number
Creating a Manual Transaction
Transaction Date: Enter the date that you
want the transaction to be posted the GL.
Creating a Manual Transaction
Description: Enter a meaningful description
Funct: F2 LookUp or Enter the account
number for the transaction. Enter Debit and
Credit amounts on corresponding lines.
Posting Manual Transactions
To view posting options, select “2”
Note: to choose the desired posting option, you can use the arrow keys on your
keyboard or type the corresponding letter associated with the posting option.
Posting Manual Transactions
Posting Option “A” Pre-Post Transaction Report will generate a report
showing the transactions that are going to be posted. Review this report
for potential errors.
Posting Manual Transactions
Choosing Posting Option “C” Post Transactions by
Type, will allow you to select and Post [F4]
Choosing Posting Option “D”
Post Individual Transaction,
will allow you to select and
post [F4] single transactions
Highlights
• What is my General Ledger?
• How other FlexGen processes affect the General Ledger
• GL Reports you shouldn’t ignore
• Manual Transactions
• Check Reconciliation
• Month End
Reconciling Bank Statements
Scroll Check Reconciliation
Enter the Fund Number
Enter Check No to start the scroll
The instructions for
reconciliation are
displayed at the top
of the window
1=Reconcile
Enter=Skip Space
Bar=Unreconcile
Batch Check Reconciliation
• Automatically Reconciles all
checks in the range entered
• Select Check Type
Enter Ranges
• Exercise Caution when using as
No option to mass unreconcile
Reconciling Bank Statements
Reconciling Checks by Diskette
• If a county office, information available from your county trustee
• Information provided on flash drive or disk
• Automatically reconciles checks/warrants
Reconciling Bank Statements
Full Check Maintenance
• Use Full Check Maintenance for
making corrections to the Check
Reconciliation file
• To correct a reconciled
check, locate the check
using the Lookup options,
then change the Check
Status
Reconciling Bank Statements
Reports
• Use these reports to
identify checks by status
• Located in the Check
Reconciliation menu
• Each of the three reports
provides you with a
Selection box similar to
the one pictured
Reconciling Bank Statements
Unreconciled Report
• Unreconciled Checks Report
• Provides total of unreconciled checks by account (Fund and Function)
• Lists Check No., Date, Paid to the Order Of, Check Type (Pay or Ven)
Reconciled status, and Amount
Reconciling Bank Statements
Reconciled Report
• Reconciled Checks Report
• Provides total of reconciled checks by account (Fund and Function)
• Lists Check No., Date, Paid to the Order Of, Check Type
(Pay or Ven) Reconciled status, and Amount
Reconciling Bank Statements
Reconciled & Unreconciled Reports
• Reconciled and Unreconciled (Both) Reports provides all the
information presented in the two previous examples
• Provides separate totals for Reconciled and Unreconciled checks
Reconciling Bank Statements
Account Analysis – Cash Account
• Most useful report in assisting with the reconciliation of bank statements
• To run, select Account Analysis from the Report panel, then select
Account from the Select order
• Enter the Beginning and Ending Month and your Cash in Bank account
number in the fields as shown in the Account Analysis Account Order
Window.
Reconciling Bank Statements
Account Analysis – Cash Account
Reconciling Bank Statements
Balancing
•
Once all adjustments and entries have been identified and made to the Cash in Bank
account
– Possible Adjustments Include
• bank service charges
• authorized automated debits or credits
• bank errors
•
A Balance Sheet will provide you with a close to real-time cash in bank balance
Reconciling Bank Statements
Balancing
Balance Per Bank
Statement
$$$$$.$$
LESS Outstanding
Checks
From Unreconciled Checks
Report
-$$$$$.$$
PLUS Deposits in
Transit
From Cash in Bank Account
Analysis
+$$$$$.$$
Should Equal Balance From Balance
Per Balance Sheet
=$$$$$.$$
Highlights
• What is my General Ledger?
• How other FlexGen processes affect the General Ledger
• GL Reports you shouldn’t ignore
• Manual Transactions
• Check Reconciliation
• Month End
Month-End Closing
Before you begin…
The following steps should provide you with a guideline for closing your
Accounting month
• Reconcile your checking account.
• Ensure all entries for the month you are closing have been made to the General
Ledger. All checks, receipts, and journal entries.
• Verify balances on your Balance Sheet
– Assets should have Debit balances
– Liabilities should have Credit balances
– Determine if you have paid all appropriate Liabilities, such as Insurance,
Retirement, or Taxes.
– You will also want to ensure your Fund is in Balance
Month-End Closing
The Steps
•
Step 1 scans for unposted manual
transactions
•
Step 2 builds G/L Control Account
Records
•
Step 3 prints the Month-End
accounting reports
Could be a lengthy process
•
Step 4 clears the Accounting Flags
Step 4 is the Point of No Return
Any Questions?
This concludes our Flexgen General Ledger for
Beginners ses sion.
Visit our website for full documentation and
useful information for other applications on
our website…
www.localgovernmentcorporation.com

similar documents