Flexgen General Ledger for Beginners

Flexgen General Ledger

for Beginners

Class Purpose• Intended for the person who has little experience using

LGC’s Flexgen Accounting software

• To demonstrate how to get important financial reports from the Accounting software

• Review method of creating and posting manual transactions

• Indentify errors to look for on financial reports

Highlights

• What is the General Ledger?

• How other FlexGen processes affect the GL

• GL Reports that shouldn’t be ignored

• Manual Transactions

• Check Reconciliation

• Month End

What is my General Ledger?

• A general ledger is a set of accounts used to track all financial transactions.

• The main purpose of the general ledger is to hold financial information from posted transactions to generate financial reports.

•How does the General Ledger affect YOU?

General Ledger Entries will be made to the ledger during payroll and will be paid out during the purchasing process. All work done in these two systems have a bearing on your general ledger.

This department is responsible for balancing the monies withheld to what the vendor is requesting payment for. If there are differences then one or both of the other departments may need to be involved.

Payroll Purchasing

GeneralLedger

Entries will be made to the ledger during payroll. Any general ledger account number changes that are made or pickup of new deductions may need to involve one or both of the other departments.

Highlights

• What is my General Ledger?

• How other FlexGen processes affect the General Ledger

• GL Reports you shouldn’t ignore



• Month End

General Ledger - Reports

From the list of Standard Reports use “Page Up” button or “Page Down” button to highlight desired report. Then Select [F4] to execute the report.

Balance Sheet - Assets

Asset Accounts Include Bank Accounts Receivables Investment Accounts Due from other funds Prepaid Expenses

Asset Accounts Carry a Positive or Debit balance A Debit increases ending balance A Credit decreases ending balance

Asset Account function numbers begin with a 1

Liability Account function numbers begin with a 2

Liability Accounts Include -

Unpaid Payroll deductions

Due To Other Funds

Payables

Short Term Debt

Liability Accounts

Carry a Negative or Credit balance

A Credit increase ending balance

A Debit decreases ending balance

Balance Sheet - Liabilities

Equity Account function numbers begin with a 3

Equity Accounts Include Reserves Fund Balance Accounts

Equity Accounts Carry a negative or Credit balance A credit increases ending balance A debit decreases ending balance

Balance Sheet - Equities

EXCEPTION: City Equity Accounts are included with Liabilities

General Ledger – Balance Sheet

Account 14500 is a Consolidated Account for YTD Expenditures

Account 28500 is a Consolidated Account for YTD Revenues

General Ledger – Balance Sheet34110-Total outstanding Current Year PO’s

34120 – Total outstanding Prior Year PO’s

39000 – Total Budget (BG) entries made to Undesignated Fund Balance

At Year EndTotal Revenues are reversed thru UFB (Debited)

Total Expenditures are reversed thru UFB (Credited)The Difference remains in Undesignated Fund Balance

In short, Revenue and Expenditure accounts are Temporary accounts that are eventually rolled into the Fund Balance at Year-End.

A Problem Balance Sheet

Assets DO NOT normally have a credit balance

Liabilities DO NOT normally have a debit balance

How do I fix my problem balance sheet?

Account Analysis The Account Analysis report will show ALL entries that have affected an account based on report criteria entered. By reviewing all transactions, potential errors can be revealed.

Account Analysis reports can be generated by specific order. This example is by Date order.

Account Analysis

Revenue Account function numbers for counties begin with a 4

Revenue Accounts IncludeTax LeviesSales of AssetsCharges for ServicesFund Transfers In

Revenue AccountsCarry a negative or credit balanceA credit increases ending balanceA debit decreases ending balance

Statement of Revenue

Revenue Account function numbers for cities begin with a 3

• Original Estimate and Amended budgeted amounts • Total Estimated Budget • Year-to-Date Realized • Percent Realized • Unrealized • Current Revenue

Statement of Revenue Reading the Report

Expenditure Account function numbers begin with 5-9 in counties.Expenditure Account function numbers begin with 4-9 in cities.

Expenditure Accounts Include Purchases made Wages Paid Capital Outlays Fund Transfers Out

Expenditure Accounts Carry a Positive or Debit balance A Debit increase ending balance A Credit decreases ending balance

Statement of Expenditure & Encumbrances

Helpful in controlling the expenses incurred on a daily, monthly, and annual basis

Three types of reports: Standard – Summarized – by object

Very useful when budgeting

State of Expenditures & EncumbrancesReading the Report

• Original Appropriations and Amendments• Total Appropriations• YTD Expenditures and YTD Encumbrances• Unencumbered Balance and Percent Used• Current Month Expenditures and Encumbrances

Over Expenditure?

State of Expenditures & Encumbrances

Highlights





• Bank Reconciliation

• Month End

Manual Transactions

From the main menu, choose Accounting

Within the Accounting Menu, choose “Manual Transaction”

A Manual Transaction is a transaction that is not generated by another process within the software. The user manually enters GL account

numbers and debits and credits.

Transaction TypesWithin the Transaction Maintenance Menu Choose Transaction Type.

Note: to choose the desired transaction type, you can use the arrow keys on your keyboard or type the corresponding letter associated with the transaction type.

Creating a Manual Transaction

Transaction Type: This will default based on what is chosen on previous screen.


Fund: Type fund number or Look Up F2 and choose fund number.

Note: You can only post transaction for the fund selected.

Transaction Number: Enter the transaction number or enter through to allow the system to assign the transaction number



Transaction Date: Enter the date that you want the transaction to be posted the GL.


Description: Enter a meaningful description

Funct: F2 LookUp or Enter the account number for the transaction. Enter Debit and Credit amounts on corresponding lines.

Posting Manual Transactions

To view posting options, select “2”

Note: to choose the desired posting option, you can use the arrow keys on your keyboard or type the corresponding letter associated with the posting option.


Posting Option “A” Pre-Post Transaction Report will generate a report showing the transactions that are going to be posted. Review this report for potential errors.

Choosing Posting Option “D” Post Individual Transaction, will allow you to select and post [F4] single transactions

Choosing Posting Option “C” Post Transactions by Type, will allow you to select and Post [F4]


Highlights






• Month End

Reconciling Bank Statements

The instructions for reconciliation are displayed at the top of the window

1=ReconcileEnter=Skip Space Bar=Unreconcile

Scroll Check Reconciliation

Enter the Fund Number

Enter Check No to start the scroll

Batch Check Reconciliation

• Automatically Reconciles all checks in the range entered

• Select Check Type Enter Ranges

• Exercise Caution when using as No option to mass unreconcile

Reconciling Bank Statements Reconciling Checks by Diskette

• If a county office, information available from your county trustee

• Information provided on flash drive or disk

• Automatically reconciles checks/warrants

Reconciling Bank StatementsFull Check Maintenance

• Use Full Check Maintenance for making corrections to the Check Reconciliation file

• To correct a reconciled check, locate the check using the Lookup options, then change the Check Status

Reconciling Bank StatementsReports

• Use these reports to identify checks by status

• Located in the Check Reconciliation menu

• Each of the three reports provides you with a Selection box similar to the one pictured

Reconciling Bank StatementsUnreconciled Report

• Unreconciled Checks Report

• Provides total of unreconciled checks by account (Fund and Function)

• Lists Check No., Date, Paid to the Order Of, Check Type (Pay or Ven) Reconciled status, and Amount

Reconciling Bank StatementsReconciled Report

• Reconciled Checks Report

• Provides total of reconciled checks by account (Fund and Function)

• Lists Check No., Date, Paid to the Order Of, Check Type(Pay or Ven) Reconciled status, and Amount

Reconciling Bank StatementsReconciled & Unreconciled Reports

• Reconciled and Unreconciled (Both) Reports provides all the information presented in the two previous examples

• Provides separate totals for Reconciled and Unreconciled checks

Reconciling Bank StatementsAccount Analysis – Cash Account

• Most useful report in assisting with the reconciliation of bank statements

• To run, select Account Analysis from the Report panel, then select Account from the Select order

• Enter the Beginning and Ending Month and your Cash in Bank account number in the fields as shown in the Account Analysis Account Order Window.

Reconciling Bank StatementsAccount Analysis – Cash Account

Reconciling Bank Statements

• Once all adjustments and entries have been identified and made to the Cash in Bank account

– Possible Adjustments Include• bank service charges • authorized automated debits or credits • bank errors

• A Balance Sheet will provide you with a close to real-time cash in bank balance

Balancing

Reconciling Bank StatementsBalancing

Balance Per Bank Statement

$$$$$.$$

LESS Outstanding Checks

From Unreconciled Checks Report

-$$$$$.$$

PLUS Deposits in Transit

From Cash in Bank Account Analysis

+$$$$$.$$

Should Equal Balance Per Balance Sheet

From Balance =$$$$$.$$

Highlights






• Month End

The following steps should provide you with a guideline for closing yourAccounting month

• Reconcile your checking account.

• Ensure all entries for the month you are closing have been made to the General Ledger. All checks, receipts, and journal entries.

• Verify balances on your Balance Sheet – Assets should have Debit balances – Liabilities should have Credit balances – Determine if you have paid all appropriate Liabilities, such as Insurance,

Retirement, or Taxes. – You will also want to ensure your Fund is in Balance

Month-End Closing Before you begin…

Month-End Closing The Steps

• Step 1 scans for unposted manual transactions

• Step 2 builds G/L Control Account Records

• Step 3 prints the Month-End accounting reports

Could be a lengthy process

• Step 4 clears the Accounting Flags Step 4 is the Point of No Return

Any Questions?

This concludes our Flexgen General Ledger for Beginners ses sion.

Visit our website for full documentation and useful information for other applications on

our website…www.localgovernmentcorporation.com

Documents

Flexgen General Ledger for Beginners