General Ledger Module

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14.4.1 New (Enter A Transaction)

Selection 1 allows you to enter an accounting transaction. You will be given the next available Transaction Number. The Transaction Number should consist of only numeric characters with leading zeros. pc/MRP is unable to increment alpha characters. The Entry Method Screen will appear giving you the following entry options:

 

General Ledger Transaction Type Menu
Select transaction type menu

If you select an S, O, or R type transaction and a prior invoice or accounts receivable voucher exits, pc/MRP will prompt you to scroll the invoice file to locate the invoice. You can scroll on document number (invoice number), customer account number , part number, model number, and or sales order number.

If you select a P, I, or E type transaction and a prior receiver or accounts payable voucher exits, pc/MRP will prompt you to scroll the receiver file to locate the receiver. You can scroll on document number (receiver number), vendor account number , part number, model number, and or customer PO number.

Enter the first several characters you wish to begin scrolling at. When the desired record is located, press enter to preview the record. If it is the wrong record, press the escape key to continue scrolling. When you find the correct record press the enter key or click on the upper left button of the scroll window and select close to create a GL transaction for that record.

It should be noted that the following examples use pc/MRP's default chart of account numbers. You can use your own chart of account numbers if you edit or add your new chart of account numbers to the chart of accounts and accounting template file (option 9 in the configuration menu).

In addition it should also be noted that the following examples were created with pc/MRP's inventory accounting method set to perpetual and not periodic (option 10 in the configuration menu's settings and utilities section). Different chart of accounts would be debited and credited if pc/MRP's inventory accounting method were set to periodic.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14.4.1.1 Cash and carry sale (S):

 

General Ledger Transaction Type Menu
Cash and carry
Sale, S type, example transaction

This type of entry is used to record a cash and carry sale. pc/MRP will bring in the above information from the invoice, and debit and credit the above chart of account numbers automatically. If the amounts are not correct, click on the abandon button, edit the invoice, and re-enter this transaction. Once you are satisfied with the transaction, click on the save button. pc/MRP will store the transaction in the transaction data base file, replace the posted field in the invoice with "Y", and, replace the complete field in the invoice with a "Y". pc/MRP will also replace the check number and amount paid fields in invoice with the correct values.

See 14.4.1.2 Register accts receivable invoice (O) for debit and credit rules.†† The S type transactions debits the Bank Checking Account and the O type transaction debits the accounts receivable account.

 

 

 

 

 

 

 

 

 

 

 

 

14.4.1.2 Register accts receivable invoice (O):

 


Register accounts receivable, material going Out, O type, example transaction

This type of entry is necessary whenever an item is invoiced on account. pc/MRP will bring in the above information from the invoice, and debit and credit the above chart of account numbers automatically. If the amounts are not correct, click on the abandon button, edit the invoice, and re-enter this transaction. Once you are satisfied with the transaction, click on the save button. pc/MRP will store the transaction in the transaction data base file and replace the posted field in the invoice with a "Y". ". pc/MRP automatically inserts the debit and credit accounts on the following basis:

If you are using pc/MRP version 7.0 and higher:

  • If the part number record in inventory has a credit account number, it is automatically inserted into the cacct1 field of a sales order and invoice for that part number.
  • If the invoice has a valid credit account number, that account number will be credited.
  • If "Multi Division" is set to div (Settings and Utilities option 11) and the invoice's division field contains a valid division, it will be inserted into the credit account number.
  • If the invoice's credit account field is empty or the invoice line items contain multiple credit account numbers, pc/MRP will use the default credit account number outlined below:

If you are using pc/MRP version 6.99 or lower, or no credit number was found in the inventory or invoice records, or there were multiple credit numbers found in the invoice.

  • pc/MRP will use the default credit account number from the chart of accounts template (30100000). The default chart of account numbers can be changed using option 9 in the configuration settings and utilities menu.
  • If Multi Division is set to div (Settings and Utilities option 11) and the division field(s) in the invoice contains valid division number(s), that division(s)'s account number will be credited.

 

 

 

 

With pc/MRP Versions 7.60 and lower, an invoice item consisting of $60.00 components, $30.00 labor and $10.00 overhead would be debited and credited as follows:

If option 10 set to perpetual accounting methods

If option 35 set to component costs only

Debits COGs $60.00

Credits Inventory $60.00

If option 35 set to component + labor costs

Debits COGs $90.00

Credits Inventory $90.00

If option 35 set to component + labor + overhead costs

Debits COGs $100.00

Credits Inventory $100.00

Since Inventory is overdriven, an adjusting entry debiting Inventory and crediting COGs must eventually be made.

 

With pc/MRP, Versions 7.61 and higher only use option 35 to determine whether to use average or standard costs.†† If there is labor and or overhead in the BOM, pc/MRP will credit those accounts regardless of how option 35 is set.†† The reason for this is that pc/MRPís cost roll up function includes labor and overhead costs if they exist in the BOM.† †As such the above invoice would be debited and credited as follows in versions 7.61 and higher.†

 

If option 10 set to perpetual accounting methods

Debits COGs $100.00

Credits Inventory $60.00

Credits Gross Wages $30.00

Credits Overhead $10.00 (actually debited for a -$10.00)

 

Inventory is no longer overdriven (but it does not include labor value)

If there were no labor items in the above BOM it would debit and credit as follows:

Debit COGs $60.00

Credit Inventory $60.00

Credits Gross Wages $0.00

Credits Overhead $0.00

 

The cash sale (S) type transaction is similar to the above (O) type transaction with the exception the S type transaction debits the checking account instead of accounts receivable.†

 

With pc/MRP versions 7.70 and higher, outside labor is rolled into inventory and inside labor is rolled into gross wages.

 

 

 

 

 

 

 

 

 

 

 

 



14.4.1.3 Accounts receivable payment (revenue) (R):

 

General Ledger Transaction Type Menu
Accounts receivable payment, Revenue, R type, example transaction

This type of entry is used to record a payment from a customer towards an existing accounts receivable invoice or voucher. pc/MRP will bring in the above information from the invoice, and debit and credit the above chart of account numbers automatically. If the amounts are not correct, click on the abandon button, edit the invoice, and re- enter this transaction. Once you are satisfied with the transaction, click on the save button. pc/MRP will store the transaction in the transaction data base file, replace the check number in the invoice, and, add the amount received to the amount received field in the invoice. If the total amount received is equal to or greater than the amount due pc/MRP will put a "Y" in the invoices complete field.

If the customer pays within 10 days and takes advantage of the terms discount, enter a general ledger transaction (accounts receivable payment). Enter the full amount originally due as the amount received. Debit checking for the amount actually received, debit Cash Discount or Business Income for the terms amount, credit Accounts Receivable for the full amount originally due.

If a credit memo is attached to an invoice. To close the invoice you must edit the invoice and enter a "Y" into the Complete Field for each line item on the invoice.

 


 

14.4.1.4 Cash and carry purchase (P):

 

General Ledger Transaction Type Menu
Cash Purchase, P type, example transaction

This type of entry is used to record a cash and carry purchase. pc/MRP will bring in the above information from the receiver, and debit and credit the above chart of account numbers automatically. If the amounts are not correct, click on the abandon button, edit the receiver, and re-enter this transaction. Once you are satisfied with the transaction, click on the save button. pc/MRP will store the transaction in the transaction data base file, replace the posted field in the receiver with "Y", and, replace the complete field in the receiver with a "Y". pc/MRP will also replace the check number and amount paid fields in receiver with the correct values.

 


 

14.4.1.5 Register accts payable invoice (I):

 

General Ledger Transaction Type Menu
Register accounts payable, material coming In, I type, example transaction

This type of entry is necessary whenever an item is received on account. pc/MRP will bring in the above information from the receiver, and debit and credit the above chart of account numbers automatically. If the amounts are not correct, click on the abandon button, edit the receiver, and re-enter this transaction. Once you are satisfied with the transaction, click on the save button. pc/MRP will store the transaction in the transaction data base file and replace the posted field in the receiver with a "Y". pc/MRP automatically inserts the debit and credit accounts on the following basis:

If you are using pc/MRP version 7.0 and higher:

  • If the part number record in inventory has a debit account number, it is automatically inserted into the dacct1 field of a PO and receiver for that part number.
  • If the receiver has a valid debit account number, that account number will be debited.
  • If "Multi Division" is set to div (Settings and Utilities option 11) and the receiver's division field contains a valid division, it will be inserted into the debit account number.
  • If the receiver's debit account field is empty or the receiver line items contain multiple debit account numbers, pc/MRP will use the default debit account number outlined below:

If you are using pc/MRP version 6.99 or lower, or no debit number was found in the inventory or receiver record, or there were multiple debit numbers found in the receiver.

  • pc/MRP will use the default debit account number from the chart of accounts template (12100000 for perpetual, 41100000 for periodic). The default chart of account numbers can be changed using option 9 in the configuration settings and utilities menu.
  • If Multi Division is set to div (Settings and Utilities option 11) and the division field(s) in the receiver contains valid division number(s), that division(s)'s account number will be debited.

 

14.4.1.6 Accounts payable payment (expense) (E):

General Ledger Transaction Type Menu
Accounts Payable payment, Expense, E type example transaction

This type of entry is used to record a payment towards an existing accounts payable receiver or voucher. pc/MRP will bring in the above information from the receiver, and debit and credit the above chart of account numbers automatically. If the amounts are not correct, click on the abandon button, edit the receiver, and re-enter this transaction. Once you are satisfied with the transaction, click on the save button. pc/MRP will store the transaction in the transaction data base file, replace the check number in the receiver, add the amount paid to the amount paid field in the receiver. If the total amount received is equal to or greater than the amount due pc/MRP will put a "Y" in the receiver's complete field.

pc/MRP will then ask if you wish to print a check for transaction, answer Y, if you wish to do so.

If a debit memo is attached to a receiver you must edit the receiver and enter a "Y" into the Complete Field for each line item in the receiver.

You can also use accounting's "Pay Bills/Print Checks" option to pay off a number of open unpaid receivers. The "Pay Bills" function basically creates a check run, entering E type transactions for each receiver selected and prints out one check per vendor.

 

 


 

14.4.1.7 Payroll (W):

 

General Ledger Transaction Type Menu
Payroll, Wage, W type example transaction

Selecting W will provide a payroll template for payroll entries. pc/MRP does not have a payroll module, just the above payroll screen. The payroll screen will automatically bring up the correct accounts to debit and credit. The user must enter the correct dollar amounts from another payroll program or payroll service. One entry can be made per payroll period, or an entry can be made for every person for every payroll period. See the example payroll transaction section of this manual for examples of entering various types of payroll transactions.

 

14.4.1.8 All transaction types (A):

General Ledger Transaction Type Menu
All other, A type, example transaction

This type of entry is used to record all other type of transactions. This quick entry form was designed to handle all transactions not involving an existing pc/MRP payable or receivable voucher. Rent, depreciation, and cash purchases are good examples. It is also the most efficient means for an outside accountant to make entries, as outside accountants are rarely required to make payables and receivable voucher entries.

This module is also used to startup or transfer in your existing account balances from your previous accounting system. Enter all your debits and credits from a previous trial balance by overriding pc/MRP's Out of Balance Message. When you have completed your entries post the month and print your financials. Check the Trial Balance Report to make sure you are in balance.

 

14.4.2 Edit/View (A Transaction)

The ability to edit General Ledger transactions can be enabled or disabled by using option 14 in the Settings and Utilities.† If the option is set to Adjust the options to edit will not be available. If this option is set to allow Edits this option allows users to scroll, edit, delete, undelete or run queries against General Ledger records.

Selecting an Indexed Search allows users to search on indexed fields.† This allows pc/MRP to find the information much faster.† To perform an Indexed Search select the:

         Indexed Search tab

         Desired Sort Order, Document Number, Account Number, or Part Number

         Enter the applicable data in the Begin Scrolling At: field

         Select the desired Action, View or Edit

         Press Search

pc/MRP will automatically scroll to the desired record or the nearest match.† Select the correct record by scrolling and press Ok to proceed to the edit screen for that record.

Selecting to run a Queried Search allows users to build, run, save, and load queries for the General Ledger table.† For further details see chapter 15.14.

If you edit an A, W, O, or I type transaction, the corresponding invoices or receivers will not automatically be edited.† Users would have to edit both the General Ledger and the corresponding invoice or receiver.

If you edit an E (AP expense payment) or P (cash purchase) transaction, pc/MRP will prompt you to edit the transaction automatically or manually. An automatic edit will correct the original receiver's amount paid and complete fields automatically. A manual edit will not correct the receiver's amount paid and complete fields. After you manually edit an E or P transaction, you must edit the receiver's amount paid and complete fields on each line item. If the original receiver has not been edited since entering the transaction, select "Auto". If the original receiver has been edited since entering the transaction, select "Manual". After manually editing the transaction, you must then edit the receiver's amount paid and complete fields. Please note, if you auto edit an accounting transaction who's receiver's amounts or quantities have been edited, the amount paid will be incorrect on both the receiver and the accounting transaction.

If you edit an R (AR revenue payment) or S (cash sale) transaction, pc/MRP will prompt you to edit the transaction automatically or manually. An automatic edit will correct the original invoice's amount paid and complete fields automatically. A manual edit will not correct the invoice's amount paid and complete fields. After you manually edit an R or S transaction, you must edit the invoice's amount paid and complete fields on each line item. If the original invoice has not been edited since entering the transaction, select "Auto". If the original invoice has been edited since entering the transaction, select "Manual". After manually editing the transaction, you must then edit the invoice's amount paid and complete fields. Please note, if you auto edit an accounting transaction who's invoice's amounts or quantities have been edited, the amount paid will be incorrect on both the invoice and the accounting transaction.

When you edit an E, P, R, or S type transaction, pc/MRP will display the Amount Paid/Received To date minus the Amount Paid/Received from the Transaction you are editing. You can enter a new Amount Paid/Received or re-enter the original Amount Paid/Received that is being displayed. If you selected "Auto", upon completing the Edit Screen pc/MRP will subtract the Previous Amount Paid/Received and add the New Amount Paid/Received to the Total Amount Paid/Received.

The Transaction Edit Module will automatically look for an Accounts Payable (receiver) or Accounts Receivable (invoice) Voucher to correct the amount paid if either of the following conditions exist: "Auto" was selected and Transaction Type = "R" and Invoice # is not "NONE" or "Auto" was selected and Transaction Type = "E" and Receiver # is not "NONE"

pc/MRP will not correctly process an existing voucher unless the Transaction Record contains either an "R" or an "E" and the correct number is in the Invoice # or Receiver # Field.

An accounting transaction record cannot be deleted unless the Amount Paid/Received or the first account debited and the first account credited equals zero.

Once you have finished editing the record, pc/MRP will ask Do you wish to mark this record for deletion? If you answer Y a message will warn you that pc/MRP requires one record in each data base file. AT NO TIME SHOULD YOU EVER DELETE EVERY RECORD IN A DATABASE FILE. Once the record has been marked for deletion you must return to the menu and select REMOVE ALL DELETED RECORDS FROM DISK AND REINDEX.

14.4.3 Scroll (Transactions)

 

Allows you to scroll and display accounting transactions. You can scroll on:
D Document Number (Transaction Number)
A Account Number (Customer/Vendor ID Number)
P Part Number Having selected the field to scroll on, pc/MRP will prompt you to enter the first characters to begin scrolling at for that field. For example, if you wanted to display the accounting transaction containing a payment from ACHME CORP you could scroll on A, Account Number and begin scrolling at ACH. Once you have located the record press to display it.

 

14.4.4 Index (The Transaction File)

 

Re-indexes the Accounting Transaction Index File. pc/MRP automatically updates its index files under normal operation. However, if you ever get a "record out of range" error message, re-indexing the index file is usually the cure. Re-indexing is wise to do after a heavy editing session or after adding many accounting transactions simply as a precautionary step.

 

14.4.5 Remove Marked Records

 

Removes all of the deleted Accounting Transaction Records from the disk. The records will no longer be recoverable.

 

14.4.6 Remove Over X Years

 

Deletes and removes from the disk all Accounting Transactions over a specified number of years old. Prior to running this command, it is advisable to save the Accounting Transaction Database File to disk and label it "Accounting Transactions DBF as of mm-dd-yr". You should also generate a printout of the file prior to closing it out.