General Ledger (GL) Card: Navison
General
No. The number of the G/L account. Notice that number series are not used for G/L accounts so this
number is entered manually.
Name A short description of the G/L account.
Income/Balance Indicates whether the account is an income or balance sheet account. This field is important in determining what accounts are closed at the fiscal year end.
Account Category: This select categories and the G/L accounts that are assigned to them. Category can be
- Assets
- Liabilities
- Equity
- Income
- Cost of Goods sold
- Expense
Account Sub Category: This select subcategories, and the G/L accounts that are assigned to them. We can create new subcategories and assign those categories to existing accounts from G/L Account Categories window.
Debit/Credit The type of entries that are usually posted to this account. The selection made does not restrict the type of transactions posted to the account. It only enhances the reporting capabilities.
Account Type The purpose of the account. The options are as follows:
• Posting - Used to accumulate transactions.
• Heading - Used for descriptive purposes only.
• Total - Used to total a range of accounts, as specified in the Totaling field. (This option is useful for totaling groups of accounts that are not in the same classification, such as gross income.)
• Begin-Total - Used to mark the beginning of an account range.
• End-Total - Used to mark the end of the range. Each End-Total account has an account range
in the Totaling field. The range can be calculated or entered manually.
Totaling Determines which accounts go into a Total or an
End-Total account type.
No. of Blank Lines Determines the number of blank lines before the account is displayed in a report.
New Page A check box that determines whether a new report page is printed after the account is displayed in the report.
Search Name Search field for finding a particular account by using text when the account number cannot be recalled.
Balance The current balance of the account. Drill down from this field to access the General Ledger Entries page.
Reconciliation Account: A check box that determines whether the G/L account is included in the Reconciliation page in the general journals. The Reconciliation page is used before posting to review the effect of posting the accounts in the journal.
Automatic Ext. Texts: A check box that, when selected, automatically adds extended text set up on the account to sales and purchase documents in the Description field. If not selected, extended text can still be set up on the account and added to documents manually. To create the extended text, click Extended Texts on the Navigate tab in the ribbon.
Direct Posting A check box that, when selected, indicates whether posting is allowed directly into this account from a journal line. This check box is automatically selected when new accounts are created.
Blocked A check box that, when selected, prevents entries from posting to this account. G/L accounts can be blocked and reopened as needed.
Last Date Modified: System-generated field that displays the date when the G/L account was last modified.
Posting
Gen. Posting Type: Defines whether the account is used only with a sale or purchase transaction or with both types of transactions. This field is used together with the TAX Bus. Posting Group and TAX Prod. Posting Group fields to find the account that the program posts VAT to. It is only filled in for revenue and
expense accounts where VAT is involved.
Gen. Bus. Posting Group: Identifies the default general business posting group for the account. This field indicates whom you sell to or buy from. It is used with the Gen. Prod. Posting Group and Gen. Posting Type fields to find the G/L accounts to post to for sales, purchases, discount amounts, cost of goods sold (COGS), and inventory adjustments.
This Identifies the default general business posting group for the account. It specifies “who we sell to” (Customers) and “who we buy from” (Vendors). When there is no customer or vendor involved in a transaction, the program will use the G/L account’s general business posting group.
When setting up business groups you must consider:
- How many groups you need for breaking down sales by customers.
- How many groups you need for breaking down purchases by vendors.
The business groups can be set up to group customers and vendors by geographical area (Domestic, EU Countries/Regions, Overseas, etc.), business type (retail, industrial, wholesale, service) or to distinguish between private entities and government agencies. The number of groups are directly related to the Chart of Accounts.
If we do not want to differentiate sales and purchases by customers or vendors, it is not necessary to set up any General Business Posting Groups.
Gen Prod. Posting Group: Identifies the default general product posting group for the account. This field indicates the type of item sold or purchased. It is used with the Gen. Bus. Posting Group and Gen. Posting Type fields to find the G/L accounts to post to for sales, purchases, discount amounts, COGS, and inventory adjustments.
This Identifies the default general product posting group for the account. It specifies “what we sell” (Item and Resources) or “what we buy” (Items). The general product posting group of an item takes priority over the G/L account’s general product posting group. Some clients may not post a sale against a G/L account – it will always be an Item, Service, or Fixed Asset, therefore the Product Posting Groups will be defaulted from those entities rather than the G/L.
When setting up product groups, you must consider:
- How many groups we need for breaking down sales by products (items and resources).
- How many groups we need for breaking down purchases by items.
Examples of how Product Posting Groups can be divided are: Raw Materials, Retail, Resources, Capacities, etc. The Product Posting Groups provide the major product groups reflected in the Chart of Accounts. Each Inventory Item and Resource is assigned a Product Posting Group.
If we only use the G/L application area, it is not necessary to set up posting groups. We must have set up the chart of accounts before we can create posting groups.
Just remember Posting Groups provide the mapping to the correct accounts.
The General Posting Setup is used to determine the Profit and Loss accounts a sale or purchase transaction will hit. The General Business Posting Group and the General Product Posting group of the transaction are used in the General Posting Setup to select the G/L Accounts to post the transaction to.
VAT Bus. Posting Group: Identifies the default VAT business posting group for the account. This field is used with the VAT Prod. Posting Group and Gen. Posting Type fields to determine VAT percent and VAT calculation type and to find the G/L accounts where the program posts VAT.
VAT Prod. Posting Group: Identifies the default VAT product posting group for the account. This field is used with the VAT Bus. Posting Group and Gen. Posting Type fields to determine VAT percent and VAT calculation type and to find the G/L accounts where the program posts VAT.
Default IC Partner G/L Acc. No.: Identifies the default intercompany G/L account number for this G/L account. When you enter this G/L account in the intercompany general journal, the IC G/L account specified in this field is used as the default balancing account number.
Consolidation
Consol. Debit Acc.: Specifies the consolidation debit account that is assigned to the general ledger account.
Consol. Credit Acc. Field
Specifies the consolidation credit account that is assigned to the general ledger account.
Consol. Translation Method
Specifies the consolidation translation method for the general ledger account. The methods include Average Rate (Manual), Closing Rate, Historical Rate, Composite Rate, and Equity Rate.
Reporting
Exchange Rate Adjustment: specifies how general ledger account will be adjusted for exchange rate fluctuates between dollar $ and the additional reporting currency.
Cost Accounting
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