General Ledger account entries are usually a summary of several transactions. Transactions of a similar nature are generally grouped together within these ledger accounts.
General Ledger analysis provides a means of distributing transaction values to ledger accounts together with analysis information. This reduces the need to create individual ledger accounts for certain categories of expenses such as travelling, repairs and maintenance, general expenses or donations for example. It also eliminates the need to manually analyze such General Ledger accounts.
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The following steps are required to configure the General Ledger to use account analysis:
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Optionally use the General Ledger Setup program to enable the account types for which analysis entries are required.
When you define an account type as requiring analysis and you use the General Ledger Codes program to add a ledger code with that account type, a message is displayed to remind you that analysis may be required for that ledger code.
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Use the GL Analysis Categories and Codes program to define:
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the analysis categories you require.
Up to 5 analysis levels (category types) can be defined against each category.
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the category codes for each category type you defined against a category.
You can define as many category codes as you require. Transaction values are processed against the category types when you use the Capture GL Analysis Entries program.
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Use either the General Ledger Codes or GL Structure Definition program to indicate the ledger accounts against which analysis is required and to define the analysis category to use for that specific ledger code.
In addition, if you want to process analysis entries from sub modules, then the General Ledger integration method for the sub module(s) must be set to detail either at company level (General Ledger Integration) or against the individual General Ledger account code(s) (General Ledger Codes or GL Structure Definition). Failure to do this results in analysis entries not being posted.
The following points are applicable to analysis entries:
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In the current version of the program, G/L analysis can only be performed on transactions originating in the following modules:
- Accounts Payable
- Accounts Receivable
- Cash Book
- General Ledger
- Sales Order Entry - Counter Sales
- Assets Register
- Inventory
- Trade Promotions
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Work in Progress
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You use the Capture GL Analysis Entries program to distribute transaction values to the required analysis codes within the analysis categories.
Whenever you process a transaction containing a General Ledger code for which G/L analysis is required (see General Ledger Codes or GL Structure Definition) then the program is displayed either when you post the transaction, or when the transaction value is distributed to one or more ledger codes.
The Capture GL Analysis Entries program is loaded from the following programs:
- AP Permanent Entries Posting, if one of the ledger codes defined in the AP Permanent Entries program requires G/L analysis.
- AP Invoice Posting, if one of the ledger codes defined in the AP Branches or Tax Code Setup programs requires G/L analysis, or if you enter a ledger code requiring analysis during the G/L Distribution phase of the AP Invoice Posting program.
- Payment Cycle Maintenance, if one of the ledger codes defined in the AP Branches>, Banks or Tax Code Setup programs requires G/L analysis.
- AP Manual Check Entry, if one of the ledger codes defined in the AP Branches, Banks or Tax Code Setup programs requires G/L analysis.
- Execute AP Payment Run
- AR Payments and Adjustments, if a miscellaneous receipt or an adjustment is processed to a ledger code that requires G/L analysis.
- Asset Disposal, if depreciation is defined by asset code and the depreciation ledger code requires G/L analysis or one of the ledger codes defined against the Assets Ledger Interface program requires G/L analysis.
- Asset Depreciation Adjustment, if depreciation is defined by asset code and the depreciation ledger code requires G/L analysis or one of the ledger codes defined against the Assets Ledger Interface program requires G/L analysis.
- Asset Depreciation Calculation>, if depreciation is defined by asset code and the depreciation ledger code requires G/L analysis or one of the ledger codes defined against the Assets Ledger Interface program requires G/L analysis.
- Asset Depreciation Adjustment Recalc, if depreciation is defined by asset code and the depreciation ledger code requires G/L analysis or one of the ledger codes defined against the Assets Ledger Interface program requires G/L analysis.
- CB Permanent Entries Posting, if one of the ledger codes defined in the Cash Book Permanent Entries Maintenance program requires G/L analysis.
- Cash Book Deposits & Withdrawals, if one of the ledger codes defined in the Banks or Tax Code Setup programs requires G/L analysis, or you enter a ledger code requiring G/L analysis.
- Cash Book Currency Variance, if the Exchange variance ledger code defined in the Banks program requires G/L analysis.
- GL Journal Entry, if you enter a ledger code requiring G/L analysis.
- GL Standard Journals, if you enter a ledger code requiring G/L analysis, then when you use the GL Journal Entry program to copy the Standard journal you will need to define the analysis entries before being able to save the journal.
- GL Initial History, if you enter a ledger code requiring G/L analysis.
- Inventory Movements, if the ledger code for an inventory movement requires G/L analysis.
- Purchase Order Receipts
- Purchase Order Inspection
- Job Receipts
- Shipment Receipt
- SO Counter Sales
- GRN Adjustment
- P&C Adjust Billing Value
- Deduction Review
- Promotion Review
- Job Closure
- Part Billings
- Job Issues
- Transfer Work in Progress
- WIP Issue Floor Stock Allocations
- AP Invoice GL Integration, AP Payments GL Integration, AR Invoice GL Integration, AR Payments GL Integration, Cash Book GL Integration, Asset GL Integration, Inventory GL Integration, GRN GL Integration, Trade Promotions GL Integration, WIP Part Billings GL Integration and WIP Labor GL Integration if one of the ledger codes defined against a transaction requires GL analysis and this was not defined at the time the transaction was processed.
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An analysis number is automatically assigned to each analysis entry when you use the Capture GL Analysis Entries program to distribute values to analysis codes.
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Analysis entries can be printed using the GL Trial Balance program.
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Analysis entries can be viewed using the GL Query program.
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Analysis entries are retained for the period defined against the option: Detailed transaction history (General Ledger Setup).
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Analysis entries are deleted by the Purge function of the GL Period End program, when they are older than the period defined against the option: Detailed transaction history (General Ledger Setup).
Following is an example of an account categorization:
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Category - MV EXP (Motor Vehicle Expenses)
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Category type - REGISTRATION (This category type would be defined as mandatory)
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Category codes:
- Registration number 1
- Registration number 2
- Registration number 3
- Registration number 4
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Category Type - FUEL
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Category codes:
- Petrol
- Diesel
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Category Type - OILS
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Category codes:
- Engine oil
- Brake fluid
- Automatic transmission fluid
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Category type - MAINTENANCE
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Category codes:
- Normal service
- Repair
- Tyres
- Battery
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Category type - OTHER
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Category codes
- Licence & Registration
- Insurance
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In this example, all five category types were used. You could, however have combined FUEL and OILS into one category type. Alternatively, you could have defined only one category type: REGISTRATION and processed all expenses for a specific vehicle (irrespective of the type of the expense) to that vehicle's registration number.