Title: | Account Setup and Administration - General Ledger |
Products: | Paramo Pro, WRC |
Last Updated: | 10 April 2015 |
Related Links: | General Journal |
Update Account
The following attributes can be updated:
New Account Entry
Account Types
The recommended account number ranges are also shown here, however any account numbering scheme can be adopted
Account Type | Description |
Revenue - Sales (10000-15000) |
Records sale of goods or services to customers
|
Revenue - Other (15001-20000) |
Revenue from other sources
|
Expense - Cost of Sales (20001-30000) |
Expenses directly related to cost of purchasing goods for eventual sale.
These include direct manufacturing costs
|
Expense (30001-40000) |
Other expenses
not related to sales |
Assets - Intangible (40001-41000) |
Intangible assets including goodwill
|
Assets - Fixed (41001-46000) |
Usually major asset purchases. Long term assets are tangible assets and may also have a accumulated depreciation account
for each asset class to record depreciation.
|
Accumulated Depreciaton (46001-50000) |
Asset depreciation accounts
|
Assets - Current (50001-59000) |
These represent items or amounts owed to the business
|
Bank (59001-60000) |
These represent bank accounts, bank accounts with overdraft
facilities, cash
accounts and credit card accounts. Account numbering should be in decreasing order of use (i.e. the current
account or checking account should come first). Accounts are
displayed in the balance sheet as current assets or current liabilties,
depending on the balance at the time. |
Credit Cards (60001-61000) |
These represent bank accounts which normally have overdrafts, and
credit card accounts
|
Current Liabilities (60001-70000) |
These represent accounts owing amount of money to the business.
Current liabilities are typically due for repayment within 12 months from when a balance sheet
is prepared (e.g. bank overdrafts).
|
Long Term Liabilities (70001-80000) |
These represent borrowings which are due in more than 12
months from the balance sheet being prepared
|
Equity (80001-99000) |
These represent money or equity owed by the business to the owner |
Important Pre Loaded GL Accounts
Account Name | Description |
Opening Stock (20010) |
This account holds entries for the opening stock valuation at the beginning of the financial year (or at the start of business). |
Debtors Account (Accounts Receivables) |
This account is where the summary for invoiced sales, and the summary of receipts are posted. A debit balance shows the total owed by customers at any given point. No entries normally need to be made to this account. |
Creditors Account (Accounts Payables) |
This is a account where the summary for invoiced purchases, and the summary of payments to suppliers are posted. A credit balance shows the total owed to suppliers at any given point. No entries normally need to be made to this account. |
GL Tax account |
The tax liability account is set up for VAT, and records input and output (sales) tax entries. Tax charged by location and code is recorded in a tax journal. The balance of this acccount provides the total tax liability at any point. If separate input and output tax accounts are needed, rename this account to Output (or sales Tax) and create a new gl account named Input Tax ( or Purchase Tax). Associate the Input Tax account with the Input Tax default |
Sales |
Records the sales of goods or services which are the primary business activity. Entries from the sales journal must be periodically posted here (using the summary post function) |
Sales Returns |
Records the credit notes issed to customers. Entries from the credit notes journal must be periodically posted here (using the summary post function) |
Shipping sales |
Records the shipping charges on sales. A summary of charges is posted along with the sales summary from the sales journal. |
Purchases |
Records the purchase of goods that are intended for resale. Entries from the purchase journal must be periodically posted here (using the summary post function). If the business is engaged in manufacturing, the purchases account can be subdivided. See section on manufacturing accounts below. |
Purchase Returns |
Records the debit notes issued to suppliers. Entries from the debit notes journal must be periodically posted here (using the summary post function) |
Shipping purchasing |
Records shipping charged on purchased goods intended for resale. A summary of charges is posted along with the purchase summary from the purchase journal. |
Discount Received |
Records discounts received from suppliers for early payments. A summary is posted along with the creditors summary. |
Discount Allowed |
Records discounts for early payment given to customers. A summary is posted along with the debtors summary. |
Profit and Loss |
Balances from the income and expenditure accounts are posted here, usually at the end of the financial year. Also see trial balance, and profit and loss adjustments in the general journal. |
General Ledger Defaults
Task Default | Description |
Counter Sales |
Default bank account when the money is paid when a customer pays a part (or full) prepayment in a credit sale |
Sales |
Sales summary totals |
Sales-Other |
Customer opening balances |
Sales-Returns |
Customer returns summary totals |
Discount-Received |
Early payment discount given by suppliers |
Purchasing-Direct |
Purchasing summary totals |
Purchasing-Shipping |
Purchasing shipping summay totals |
Purchasing-Returns |
Debit notes summary totals |
Purchases-Other |
Supplier opening balances |
Discount-Allowed |
Early payment discount to customers |
Sales-Shipping |
Shipping charged summary totals |
Output Tax |
|
Input Tax |
|
Creditorsrs |
|
Debtors |
|
Profit and Loss |
Default account for closing income and expense accounts at the end of the year |
Opening Balance |
Gets the Default equity account for entering opening balances. |
To Change a GL Default
You can re-assign the task default to a different GL account (e.g. 'Counter-Sales' is initially assigned to the Checking Account. This default can be reassigned to a different bank account.)
Important Pre Loaded Manufacturing GL Accounts
Manufacturing accounts are part of the cost of sales calculation in the profit and loss statement.
Account Name | Description |
Direct Labour |
This holds entries for cost of labour directly used in items for resale e.g. machine operator. |
Direct Expenses |
This holds entries for direct expense used in items for resale. e.g. rental of machines |
InDirect Expenses |
This holds entries for expenses not directly traceable to items being sold. e.g. heat and lighting |
Work in Progress Stock |
This account holds entries for the opening work in progress stock valuation at the beginning of the financial year (or at the start of business). The value of the work in progress stock is not calculated and will have to be provided by the user when the profit and loss double entry is made. |