General Ledger

Question 1

What is General Ledger?

Answer 1

It summarizes all the transactions that happen in all other modules (subledgers)
Key reports: Trial balance, statement of revenues an expenses

Question 2

What are Journal entries?

Answer 2

accounting entries that are always a balanced set of Credits and Debits-either directly created in the general ledger or summarized from the various sub ledgers.

Question 3

What are inquiries?

Answer 3

Accounting inquires into the data to find transactional details and attached documentation.

Question 4

Reporting?

Answer 4

The collection of Financial Reports that make up an entity’s Financial Statemetn.

Question 5

General Ledger Tree:

Answer 5

General ledger

Accounts (fund, dept, object) Accounts (fund, dept, object) Accounts (fund, dept, object)

Sub Ledger, Sub Ledger Sub Ledger

Question 6

What are best practices in the General Ledger?

Answer 6

1) Control the Chart of Accounts:
- Keep object (account) codes generic and consistent
- Keep them to a minimum (none “hold” less than 1% of the dollars in its group
- Use segments only for the purpose it is designated for

2)Use sub-ledgers

3) Use Journal entries sparingly and never for transaction detail that belongs in a sub-ledger.
- Create templated journal entries
4) Perform period closes to ensure your records are complete (matching, consistency, accrual).