General Ledger
Every ledger must have the "4Cs":
- Chart of Accounts (CoA) - helps organize accounting the data into segments
- Calendar - the Calendar identifies the time frame of the transaction
- Currency - provides a financial measurement
- Convention (or called Accounting Convention) - the statutory requirements of how we conduct our accounting (i.e. IFRS, US GAAP, etc.)
Chart of Accounts:
- Minimum of 2 Segments, Maximum of 30 Segments
Three types of Ledgers:
- Primary Ledger
- Secondary Ledger
- Reporting Currency Ledger
You may have multiple Primary Ledgers for each each Legal Entity, depending on the country you're implementing for. A Secondary Ledger also shares all the data as the Primary Ledger, but may have a different accounting convention (i.e. US GAAP and IFRS).
A Reporting Currency Ledger shares all the data as the Ledger its attached to, but may have a different Currency (i.e. US to JPY). Note that one can have a separate Reporting Currency Ledger attached to a Primary and Secondary Ledger.
The Accounting Calendar defines
You may know more about Opening and Closing Accounting Periods on the Article "Overview of General Ledger Periods Cycle".
A quick checklist on the whole General Ledger process is shown in the Article: "General Ledger Accounting Cycle".
Transferring data from Subledgers to the General Ledger:
A Reporting Currency Ledger shares all the data as the Ledger its attached to, but may have a different Currency (i.e. US to JPY). Note that one can have a separate Reporting Currency Ledger attached to a Primary and Secondary Ledger.
The Accounting Calendar defines
You may know more about Opening and Closing Accounting Periods on the Article "Overview of General Ledger Periods Cycle".
A quick checklist on the whole General Ledger process is shown in the Article: "General Ledger Accounting Cycle".
Transferring data from Subledgers to the General Ledger:
- Balances Level - Lowest Level of Detail
- Journal Level - Moderate Level of Detail
- Subledger Level - Highest Level of Detail
thankyou !
ReplyDelete