General Ledger Transactions
Once you have set up your chart of accounts and other general ledger features, you can use them to manage transactions in the system. GL transactions are of two basic types:
• Transactions from other operational areas such as inventory movements, sales order shipments, and purchase order receipts
• Transactions created in financial functions, such as supplier invoices, bank and cash transactions, journal entries, open item adjustments, and AR and AP payments
You can use the general ledger to create journal entries, create recurring entries, reverse transactions manually and automatically, and perform currency revaluation. If you plan to record the same journal entry on a regular basis, posting templates let you save the posting details for reuse. Templates are typically used with recurring entries, when the template is posted at recurring intervals according to the related calendar. However, you can use templates for any type of repetitive posting.
You can create GL transactions through transferring batches of transactions from one layer to another. When unfinalized transactions are posted to a daybook in a transient layer for review, you can you transfer them as a group to the official layers after they are approved.
You can also allocate costs from a central cost pool and distribute the costs across departments based on identified cost drivers.
You can reconcile the outstanding balance of a GL open item account with the underlying transaction detail using GL Open Item Reconciliation (25.15.2.13).
General Ledger manages intercompany and cross-company accounting and balances transactions between entities in the same domain.
Mirror accounting provides support for the reflection of inventory transactions in the income statement, and is often used in environments where the periodic method of inventory accounting is used.
Monthly closing and reporting processes provide a broad range of reports with which to check the completeness and consistency of data before proceeding with formal reporting.
You can manage year-end processing and consolidation with General Ledger functions. A wide-range of analytical and structural reports lets you view accounting data in many different formats.
The system also provides the ability to drill down on a GL transaction, and retrieve the detail relating to the source of the transaction. For example, when drilling down on a GL transaction for a customer invoice or supplier invoice, you can right-click in the GL Transactions View (25.15.2.1) and select Customer Invoice View (27.1.1.3). This option opens a separate Customer Invoice View window that displays the specific invoice you selected. The option to view the source detail is also available for supplier invoices, customer and supplier payments, recurring entries, allocations, revaluations, open item adjustments, receiver matchings, petty cash, and banking entry transactions.
When drilling down on a GL transaction for an associated operational Inventory Control (IC) transaction, you can right-click and select the View Inventory Transactions Detail Inquiry to displays details on the original inventory transaction. Similarly, when drilling down on a GL transaction for an associated operational work order transaction, you can right-click and select the View Operational Transactions Detail Inquiry to display details on the original work order transaction.