GENERAL LEDGER OVERVIEW

Note:   Included with Bookstore Manager Software is a complete Chart of Accounts setup, which we suggest you use as a starting point when setting up your General Ledger

****Run GLC and print out a General Ledger Chart of Accounts

Set Up Company Header - GLM

• Set up your General Ledger Header Account up by using the GLM program, "Change/Delete Store" option.
• Multi-Store users, enter 01 for the store number.  Then enter the name of Store #1.   Do the same for each store, entering 02, 03, etc.

Clear GLAP File of Entries Included in the Beginning Balances

If you have been using the Accounts Payable program in BSMGR and are just now beginning to use the General Ledger, there may be entries in the GLAP file that are already included in the beginning balances of your General Ledger.

• Run the GLAP program, selecting the "Print A/P Jrnl Contents" option to view the contents of the file. Any entries included in the beginning balances should be sent to the General Ledger by date and then deleted from the General Ledger.
• Select the GLAP option "Transfer Entries by Date" to send the entries to the General Ledger. Be sure to pick up all entries up to the fiscal period you are starting on the General Ledger.
• Run the GLUL "Zero Out G/L" option to clear the entries from the General Ledger.

If you are initially setting up and need to clear out all entries that may have been entered inadvertently on Accounts Payable or General Ledger:

• Select the GLAP option "Transfer All Entries to G/L" to send all entries to the General ledger.
• Run the GLUL "Zero out G/L" option to clear the entries from the General Ledger.

Edit General Ledger Account Numbers - GLM

The General Ledger programs come with a Chart of Accounts for a single store. Multi-Store users will need to download a Two-Store or Multi-Store Chart of Accounts.

A.    Add New Account

From the Chart of Accounts, check to see if the accounts set up in the General Ledger are all the accounts you will need.  If you need to add an account, use the GLM program, "Add Account" option.

B. Change Account Number

• If you want to change the account number of an account containing history information you want to save, use the GLN program to transfer the history to the new account number.
• This should be done after setting up for a new month and before any current transactions are entered, because only the history and balance forward are retained.  Current entries will not transfer.

C. Multi-Store

You will need to download either the Two-Store Chart of Accounts or the Multi-Store Chart of Accounts (up to four stores).  Income and Expenses for each store will be under the 01, 02, 03, etc. accounts. The department 00 accounts are for the "parent" company.

D. Make sure the General Ledger account numbers are correct:

• In APHD ("Company Header Info"), make sure the G/L account numbers are set up correctly.
• In SYS, Config File, Cash Register Config, make sure all the G/L accounts are set up correctly in each department, etc.

Make Your Entries - GLE

Enter the balance forward of all your General Ledger accounts, using the GLE program, "General Journal" option to make entries.  The entries MUST balance.

Note:   No beginning balance entries should be made into the “Current Year Earnings” account

G/L Recurring Entries - GLRM, GLRE, GLRP

GLRM allows you to set up General Ledger accounts so that entries for the same amount may be made automatically each month.  Assign a recurring index number so you can locate each recurring account.  Every debit entry must have a balancing credit entry.  You will need to run the GLRE program so the amounts will be pulled and entered in the General Ledger before you close out the month.  Using the GLRP program, you can print out a list of all recurring accounts

Note:     You do not have to use this program, as all manual entries for the month may be entered using GLE.

General Ledger Inquiry - GLI

Using the GLI program, you may look up any account in the General Ledger.  Enter the department number, then the account number.  You may then print the information or view it on your screen.  The account number, name, and balance forward will be shown; then a list of any entries made on the account for the month, with the ending balance.  You may view or print all the entries for the fiscal year for months that have been closed by choosing the "History Year" option instead of the "Current Month" option.

End of Month Close Out

A.    GLAP - Entry of Accounts Payable to General Ledger

• Accounts Payable entries are held in the A/P Journal file.  When closing out the General Ledger, post the Accounts Payable entries to the General Ledger for the month you are closing by using the GLAP program.  This program will transfer all of the entries made using the APE ("Invoice Entry"), APDD ("Pay By Due Date"), APBI ("Pay By Invoice"), APRE ("Post Recurring Entries") and APCP ("Print Checks") programs.
• You can choose to transfer all of the entries to the General Ledger, or to transfer just the entries made during a specific time period.  These will be transferred by the date of invoice/credit memo, checks by the date checks were printed, and voided checks by the date the check was voided.  If you have entered invoices or written Accounts Payable checks that you do not wish to be included in the month you are closing, use the "Transfer Entries By Date" option.
• The transfer of the Accounts Payable file must be done before you close out the month on the General Ledger.

B.    SLP - Transfer Sales to General Ledger

• Before transferring the sales to the General Ledger, you need to check in SYS, Config File, Cash Register Config, and make sure that you have all the General Ledger accounts set up correctly.
• The SLP program will transfer to the General Ledger all of the sales made for the month, as well as Accounts Receivable charges and payments, layaway charges and payments, credit card charges, and paid outs entered at the Point of Sale.  This program also takes a percentage of sales out of inventory and puts the amounts in cost of goods.
• When SLP is printed and sent to the General Ledger, the printout will show the accounts and the debit and credit entries that were sent to the General Ledger.
• Make any corrections on your deposits before you send to the General Ledger.  If this isn't done you will need to make an adjusting entry to correct the deposit amount.

Multi-Stores will need to transfer the Sales Journal information to Store #1 (the store doing the General Ledger).  This information can be taken to Store #1 via the BBCP program (Optional Program), or via floppy.

After transferring Store #2’s information to Store #1, send the information to the General Ledger, using the SLP program, choosing Store #2.

C.      GLRE - Recurring Entries

If you are using the recurring entries feature, you must run the GLRE program to transfer to the General Ledger any recurring entries you have set up in the GLRM program.

D.      GLE - Reconciliation of Bank Statement and Adjusting Entries

Reconcile your bank statement and balance to your checking account in the General Ledger.

• Using the SLP printout for the month, make sure the deposits on your bank statement are the same as what you have entered on your sales report.  If the deposits are different, make the adjusting entries on the General Ledger using the GLE program.
• Make any other adjusting entries from your bank reconciliation on the General Ledger, using the GLE program.
• You also must enter your office checks on the General Ledger, using the GLE program.  You may make the adjusting entries using the "General Journal" option.  Enter the account number, reference (if entering office checks, use the check number), the date change occurred, the amount of the change, and a description (if entering office checks, the payee).
• You must always have a counter entry to balance the General Ledger.  (If entering office checks, the other entry would be a credit entry to the Cash account number.)  When entering a credit amount, use the minus.
• Before you close out the month, you must enter any adjusting entries to balance your checking account to your bank reconciliation.  One of the adjusting entries could be for insufficient checks charged back to your account.  You could debit the Accounts Receivable Trade account and credit your Checking account.  When you receive the money for an insufficient check, you could make an extra deposit and code it to Accounts Receivable Trade as a credit and debit your Checking account.  Or, you could ring up the money at the Point of Sale using the department "#40 Returned Checks."
• Other adjusting entries could be service charges, check print charges, or automatic transfers.  These would be debited to the correct account (bank charges or interest, office supplies, or accounts payable note) and credited to your Checking account.
• Another adjusting entry could be for extra deposits.  These would be credited to the correct account and debited to your Checking account.
• Discounts on credit card charges would also need to be expensed.  Credit card discounts should be debited and the Cash account credited .
• Make any other adjusting entries using the GLE program.  If this is the last month of your fiscal year, you will need to make any end of year adjusting entries before you set up for new month. (Do NOT make entries in the 13th month Close of year.)

Note:    The end of year adjusting entries may be entered by the "Adjustment (Prior Period) Journal" option after the end of year has been completed.

E.      GLTB - Trial Balance

Run the GLTB program to see if the General Ledger balances.  If you are out of balance, you will need to locate and correct where you do not balance.

Note: The GLTB program MUST be run.

F.      GLIS - Income Statement

Print out the income statement using the GLIS program.

G.    GLBS - Balance Sheet

• Print out the balance sheet using the GLBS program.
• Check the income statement and balance sheet to see if there are any errors in posting.
• If something is coded to the wrong account and you need to make a correction, make the correcting entry using GLE.
• If any entries are made after you first run the trial balance, you will need to run the GLTB, GLIS, and GLBS routines again.

Note:   You may print the income statement and balance sheet as many times as needed.

H.      GLPJ - General Journal

Print the General Journal, using the GLPJ program.

I.       GLP - General Ledger

Print the General Ledger, using the GLP program.

J.       GLS - Set Up for New Month

• Set up for new month using the GLS program.  This clears out the entries for the month and shows the balance forward for the next month.  This MUST be done before any entries are made for the next month or you will have two months combined.  After the set up for new month is run, you will be ready for the next month's entries.
• If this is the last month of your fiscal year, you should make any adjusting entries for the year before you set up for new month.  Or, you may close the last month of the fiscal year, close out the end of year, and then enter the adjusting entries in the "Adjustment (Prior Period) Journal" at a later time.

Close of Year

A.      GLCR - Close to Retained Earnings

To close out your General Ledger for the year, you need to first close out the final month (12^th period) and run GLS.  If you are on a fiscal year, this will be December. Do NOT make any adjusting entries after GLS has been run for the 12th period. Then run the GLCR program.  This moves the profit for the year to the Retained Earnings account.

B.      GLTB - Trial Balance

• Run the trial balance, using the GLTB program.  When prompted for current period, enter 13.  This program MUST be run.
• You may then run the income statement, using the GLIS program, and the balance sheet, using the GLBS program, but this is Optional.

C.      GLS - Set Up for New Month

You MUST run this program.

D.      GLHU - History Update

You MUST run this program.

This sets the month to zero and moves the history to last year.  You will now be set to start the entries for the new year.

Note:    Last year’s history will be deleted when you run GLHU.  You should print any accounts that your accountant might need for making end of the year adjustments, if adjustments have not already been made.