01 General ledger - inteacc/erphelp GitHub Wiki

General ledger and financial reports

INTEGRATED

Inteacc ERP system is a complete and integrated business solution where the General ledger and financial reporting is the heart of the enterprise.

  • Integration mechanism continuously works to process real-time transactions in different modules–Automatically posts transactions to GL
  • Backgroundjob–Option to schedule background job to run during idle time of the server (@ night) to process periodic data e.g. depreciation calculation

Transactions

Record transactions in different events and in different ways as appropriate.

The transactions related to other modules are automatically captured whereas some other accounting and banking entries are processed in side the Financial accounting module.

The direct transactions with the financial accounting module are:

  1. Journal entries
  2. Bank transactions
  3. Cash transactions
  4. Inter-bank cash transactions

Productivity

The use of one or multiple robust templates can save a lot of time for the repetitive types of entries. Users will be able to create template directly or can generate from any existing journals.

Budget

Tax engine

Bank reconciliation

You can user your ERP system to reconcile bank transactions in your book with your Bank statement.

Follow the steps below:

  1. Download electronic bank statements in Excel or CSV format unless you have been using API to directly download your company bank account into Inteacc ERP.
  2. Create a reconciliation entry. Select the related bank account of the company and update the date range for which you're reconciling.
  3. Upload the electronic Bank statement from your bank
  4. Click Refresh to load the posted bank transactions recorded in your bank module. Now you will see both tables in the screen has records.
  5. Now we will reconcile. Compare the amount and match. Check them when matching.
  6. Once at least a pair of entries is matched, click "Match".

Cost centre

Cost allocation

Report engine

Integration of GL with other modules

Inventory integration

Journals example

  1. Purchase of Raw Materials on Credit:

    Debit Raw Materials Inventory (Asset) Account

    Credit Accounts Payable (Liability) Account

This entry records the purchase of raw materials on credit.

  1. Recording Usage of Raw Materials in Production:

    Debit Work-in-Progress (WIP) Inventory (Asset) Account

    Credit Raw Materials Inventory (Asset) Account

This entry reflects the transfer of raw materials from the Raw Materials Inventory to the Work-in-Progress Inventory as they are used in the manufacturing process. The debit to WIP represents the increase in the value of the products in process, while the credit to Raw Materials Inventory reduces the value of raw materials on hand.

  1. Recording the Cost of Goods Manufactured:

    Debit Finished Goods Inventory (Asset) Account

    Credit Work-in-Progress (WIP) Inventory (Asset) Account

This entry records the transfer of completed goods from the production process to Finished Goods Inventory. It reflects the completion of products and the removal of their cost from the Work-in-Progress Inventory.

  1. Recording the Sale of Finished Goods:

    Debit Accounts Receivable (Asset) or Cash (Asset) Account

    Credit Sales Revenue (Income) Account

    Debit Cost of Goods Sold (Expense) Account

    Credit Finished Goods Inventory (Asset) Account

This entry reflects the sale of finished goods. The debit to Accounts Receivable (or Cash) and the credit to Sales Revenue recognize the sale, while the debit to Cost of Goods Sold (COGS) recognizes the cost of producing those goods. The credit to Finished Goods Inventory reduces the value of the inventory.

These journal entries ensure that the cost of raw materials is gradually moved from Raw Materials Inventory to the COGS when they are consumed in the manufacturing process. This reflects the matching principle in accounting, where expenses are recognized in the same period as the revenue they help generate.