General Ledger Archives

SUP125 – GL Journals & Currency Revaluation


There have been an extensive number of Changes to the Customer, Vendor and General Ledger Journals in the last update that this document intends to highlight. These range from Currency Valuations, to ‘In-line” formulas, Partially Saving Journals, a Journal Line verification function as well auto-reversing Journals.

General Design

The Journal function caters for Customer, Vendor and Inventory Journals all rolled into one, as seen below. This allows you to perform functions like reallocate balances from Customer to Vendor Accounts in one function. In addition, you can process single journals with the respective contra accounts in one line for ease of use.

Foreign Currency Revaluations

The foreign Currency revaluations caters for Customer, Vendor and Bank Account revaluations at any day in the current or previous year. Once we select the Revaluation, we then select whether this is Customer Vendor or Bank, then decide which of the Accounts we would like to Revalue, regardless of currency, as displayed the screen below.

In-line Formulas and Line Document Attachments

The in-line formula function allows you to enter formulas with the result being automatically applied to the Journal value, with a positive value as a debit and a negative value as a credit as seen below. This acts as a complete audit trail to show precisely how the journal values were derived. The document attachment function at Line Item level completes this function allowing you to attach all related supporting documentation relating to that specific transaction.

Save Journals with Line Update Verification

The new Save function allows you to save, or park, a journal and go back into it at a later stage. In addition, we have added a Verify check box that is essential when processing Recurring or Reversing journals as you can not identify which lines have been verified (checked) or not and allows you to immediately start where you left off previously.

Reversing Journals

The reversing Journal function allows you to set a Reversing Date on a Journal then run the Reversing Journal function as seen below between any date range. The system will then create an opposite Journal of the original swapping Debits and Credits, allowing you to adjust as required. This is ideal for monthly accruals or provisions that need to be reversed at the beginning of the following month. Yu can also edit the reversing Date as required using the “DocInfo” button as found on other processing documents that allows you to edit “non-financial” information. Here we select the reversing function and select the required journals that we would like to revere. After we run the process the Reversing Journal flag is cleared on the Primary Journal.

Preview Financials Before Journal Update

This function allows you to preview the effects of the Journal on the Financial Statements before updating the Journal. Below you will see that you can preview the Income Statement, Balance sheet and Trial Balance, with the only condition being that he Journal must be in Balance on order to Generate Balance Sheet or Income Statement reports. You will see in the screen below that the Journal has not yet been Updated, or Recorded.


SUP105 – Segmented General Ledger

The General Ledger Segmentation function was designed to allow business to have extended General Ledger reporting capabilities in organisations with Multiple Branches and/ or departments, with the ability to filter and report on one or more of the segments. This facility has also been designed to complement the account set by warehouse function, allowing us to have a segment integration by item or item category by warehouse, allowing profitability to even be reported on a product line basis. Another market for this is in the issuance and control of Grants or Fund Management whereby we can report on the individual projects managed within the specific fund(s).

Another limitation that has been overcome is that of departments with departmental allocations previously being done at a document level basis. With the segmented General Ledger you can now process integrations document line item.

Setting Up General Ledger Segmentations

The first thing you need to do is to create the segments. It is important to note that creating segments is merely creating parameters and does not create the accounts themselves. Creating segments will be explained in 2 separate sections, ie clients converting an existing (non-segmented) company, and clients creating a new company. Note that the ability to add segments is available to both scenarios at can be done at any time. You can also Manage segments either by accessing the General Ledger / Maintenance / Accounts function and selecting the Add New Account Segment as seen below.

You can also access the account segment maintenance by accessing the Control Panel / Company Options / Company tab as seen below:

Upgrading an Existing Company

Existing Segments

When you upgrade from a pre-General Ledger Segmentation company, on conversion the current Sub-Accounts will automatically become the second segment, and will allow you to report by the values in this segment.  You can see from the screen that we had 2 sub-account settings in the Original Company Data namely 0000 and 0500. All we need do now is to name the segments and report accordingly.

Adding Segments

You can then redefine the General Ledger Segments as required with the ability to add new segments as seen below.

Remapping Accounts

The Manual Setup option as seen here, allows you to define your own segment lengths while the other options below will install the 4-4 account segment structure with the sample data, but allow you to adjust at a later stage. The first segment is reserved for the account number and can have a minimum quantity of 3 digits, that are numerical only, while the other segments are limited to 10 segments 50 characters in total, and can be set as Alpha, Numeric or, Alphanumeric as defined above.

Creating a New Company

When creating a new company there are a number of options afforded to you.

The Manual Setup option as seen here, allows you to define your own segment lengths while the other options below will install the 4-4 account segment structure with the sample data, but allow you to adjust at a later stage. The first segment is reserved for the account number and can have a minimum quantity of 3 digits, that are numerical only, while the other segments are limited to 10 segments 50 characters in total, and can be set as Alpha, Numeric or, Alphanumeric as defined above.

Building or Creating Accounts

Once you have created your segments (or building blocks) you then need to create your accounts. You do this by selecting the primary account segment then select the second segment. In doing this you ensure that only the accounts relevant to that segment (branch or department for example) are created.

Using the Account Builder

The account builder function allows you to build your required accounts with the Segment definitions being added as they are selected as seem here.

Account Import

We also provide the ability to import your General Ledger accounts. You can find this in the Control Panel / Import & Export / Ledger Accounts.

General Ledger Reporting

The general ledger reporting function caters for up to 3 combinations of segment filters in most of the ledger Reports. In addition, you can select one of more of the segments to give you unsurpassed multi-dimensional financial view of your business.

SUP085 – GL Open Item Allocations

The purpose of this function is twofold. Firstly it allows you to “allocate” or suppress from view, transactions that offset each other, allowing you to only see the relevant “outstanding” entries. Secondly, the system is used to auto-allocate transactions during the adjusting process, allowing you to suppress the original and reversal entries on the fly, leaving only the original entry as unallocated.

Manual Reconciliation

You would generally use this facility to reconcile accounts such as cash clearing accounts or general provisions and accrual accounts where you would like to offset amounts or entries against each other.

To process open-account allocations, first, select the icon in the General Ledger processing screen and select the account to allocate against. The system will list all transactions in the account whether allocated or not. This will allow you to reallocate previously allocated transactions should you require.

In the screen below you will see that we have offset a loan of R2000 against 2 of the repayments (in red) where the system has automatically applied an adjusted entry in Orange.

You can now run the General Ledger Transaction report showing All transactions or only the Unallocated Transactions.

Showing ALL transactions

Or showing UNALLOCATED Transactions Only

Automated Reconciliation

One of the main control features in Palladium is that we write a reversing Journal Entry for all adjusted transactions. This is good accounting practice and corporate governance, but can result in an extensive number of transactions in your General Ledger accounts.

To overcome this, Palladium automatically reconciles the original transaction with its General Ledger reversal on the fly, allowing users the ability to show all transactions or only the “unaffected’ or unreconciled entries.

To prevent excessive transactions we would like to remind you of the Document Info feature that allows you to amend non-financial information, such as a sales representative as on sales documents as will not create any General Ledger Entries unlike the Adjust feature found on the same document.

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