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Setting up the General Ledger:
In brief, a business has "income" and "expenditure". Income is generated mostly by sales but also by means like bank interest. (Sorry, attempt at humor!) Expenditure is any money you pay out in day to day business which includes things like parts, wages, rent, insurance, power, phone, superanuation, the list seems endless! All going well, your income is greater than your expenditure and you make a profit.

To generate accurate, functional reports, you must set up the ledger in an appropriate fashion so G-E can calculate the figures correctly. Remember, a computer can't think, only compute, which it can do extremely fast and without getting bored. G-E tells the processor where to find figures etc. and what to do with them. We set up the program to make it as easy as we can for you to enter the figures etc. in the correct places. When the program sends the processor to fetch a number, we can only expect to get the correct number. It is up to you to ensure figures etc. are entered correctly. Unfortunately, we can't check for incorrect entries here as we don't know your business and therefore don't know if the numbers you enter are correct.

The "layout" consists of "Categories" and "Columns". (Just like a cash book). It is in the columns that G-E stores the information. An example of a category could be "PARTS SUPPLIERS". An example of a column could be "Auto One Spares". In this example, "Auto One Spares" would be a sub-category of "PARTS SUPPLIERS". We call this sub-category a "Column" as it would normally be a column in a general ledger book. The number of categories and columns in categories is unlimited, but bear in mind a general ledger categorized too far could be a monster to work with.

G-E has two default columns, "Bank" and "Cash". Bank and Cash are categories and columns rolled together. The "Bank" lists all transactions you enter, money you deposit, cheques you write etc. "Cash" is the cash-on-hand you have in the kitty. If you take a payment from someone, you put the money in the kitty until you bank it. G-E does this automatically. All payments received are added to the cash column automatically. The total in the cash column should match the physical total in the kitty.

"Categories" are represented in G-E by all upper case characters. You create categories and give them a name. The same applies to "Columns". You create a column and name it.
Before the General Ledger can be of any use, you must create some categories and columns.

Now that the layout of the Ledger is understood and categories and columns have been created, the ledger becomes a useful tool. Like any ledger, it functions by moving funds from one column to another. The funds are injected into the ledger mainly from payments being taken from clients. When a payment is entered, the payment is recorded in the Cash Column and the amount in the Cash Column increases. The total amount in the Cash Column should match the physical cash on hand. Regular comparisons between the two is useful for catching missed client payments and cash expenditure that has not been entered in the ledger. When the physical amount of cash on hand is great enough, we do the banking. Doing the banking in the ledger involves transferring the banked amount from the Cash Column to the Bank Column. Generally, we pay our suppliers with cheques. When we do this, we transfer funds from the Bank Column to the Supplier columns.
The ledger system in G-E is completely editable. Any errors in transfers can be easily corrected and transfers can be deleted from the system.

G-E's Ledger system is pretty vast. It is capable of recording all your business finances and every financial transaction you perform. Like any ledger system, it is going to be only as good as the input from you. If you feed it garbage, expect garbage out!

The ledger forms an integral component in GST calculations. All GST expenditure information is calculated from ledger columns. It is therefore advisable to keep the ledger up to date and ensure your figures are accurate.

Bank Account reconciliation is the normal method of ensuring most business figures are correct. G-E has a bank reconciliation function to compare the ledger figures with your bank statements. Use the "Reconcile Bank" function when you get your bank statements. The more you delay with bank reconciliation after receiving the bank statements, the more difficult it is to track down balancing errors, just like a cash book!

Before proceeding with the Ledger, please review the Categories and Columns as these are the fundamental building blocks of the ledger system.

Do the Banking =>
Pay Supplier
Other Transfers =>
Edit Transfer =>

Category =>
Column =>
Column Listing

Transactions Report
Outstanding Debtors
Uncleared Payments

Creditors Owed
Process Creditor

Reconcile Bank

Income / Expenditure
GST Report