Flexgen General Ledger for Beginners

1. FlexgenGeneral Ledger for Beginners

2. Class Purpose • Intended for the person who has little experience using • LGC’s Flexgen Accountingsoftware • To demonstrate how to get important financial reports • from the Accounting software • Indentify errors to look for on financial reports • Review method of creating and posting manual transactions

3. Highlights • What is the General Ledger? • How other FlexGen processes affect the GL • GL Reports that shouldn’t be ignored • Manual Transactions • Check Reconciliation • Month End

4. What is my General Ledger? • A general ledger is a set of accounts used to track all financial transactions. • The main purpose of the general ledger is to hold financial information from posted transactions to generate financial reports. • How does the General Ledger affect YOU?

5. General Ledger Entries will be made to the ledger during payroll and will be paid out during the purchasing process. All work done in these two systems have a bearing on yourgeneral ledger. General Ledger Payroll Purchasing Entries will be made to the ledger during payroll. Any general ledger account number changes that are made or pickup of new deductions may need to involve one or both of the other departments. This department is responsible for balancing the monies withheld to what the vendor is requesting payment for. If there are differences then one or both of the other departments may need to be involved.

6. Highlights • What is my General Ledger? • How other FlexGen processes affect the General Ledger • GL Reports you shouldn’t ignore • Manual Transactions • Check Reconciliation • Month End

7. General Ledger - Reports From the list of Standard Reports use “Page Up” button or “Page Down” button to highlight desired report. Then Select [F4] to execute the report.

8. Balance Sheet - Assets • Asset Account function numbers begin with a 1 • Asset Accounts Include • Bank Accounts • Receivables • Investment Accounts • Due from other funds • Prepaid Expenses • Asset Accounts • Carry a Positive or Debit balance • A Debit increases ending balance • A Credit decreases ending balance

9. Balance Sheet - Liabilities • Liability Account function numbers begin with a 2 • Liability Accounts Include - • Unpaid Payroll deductions • Due To Other Funds • Payables • Short Term Debt • Liability Accounts • Carry a Negative or Credit balance • A Credit increase ending balance • A Debit decreases ending balance

10. Balance Sheet - Equities • Equity Account function numbers begin with a 3 • Equity Accounts • Carry a negative or Credit balance • A credit increases ending balance • A debit decreases ending balance • Equity Accounts Include • Reserves • Fund Balance Accounts EXCEPTION: City Equity Accounts are included with Liabilities

11. General Ledger – Balance Sheet Account 14500 is a Consolidated Account for YTD Expenditures Account 28500 is a Consolidated Account for YTD Revenues

12. General Ledger – Balance Sheet 34110-Total outstanding Current Year PO’s 34120 – Total outstanding Prior Year PO’s 39000 – Total Budget (BG) entries made to Undesignated Fund Balance At Year End Total Revenues are reversed thru UFB (Debited) Total Expenditures are reversed thru UFB (Credited) The Difference remains in Undesignated Fund Balance In short, Revenue and Expenditure accounts are Temporary accounts that are eventually rolled into the Fund Balance at Year-End.

13. A Problem Balance Sheet Assets DO NOT normally have a credit balance Liabilities DO NOT normally have a debit balance

14. How do I fix my problem balance sheet?

15. Account Analysis The Account Analysis report will show ALL entries that have affected an account based on report criteria entered. By reviewing all transactions, potential errors can be revealed. Account Analysis reports can be generated by specific order. This example is by Date order.

16. Account Analysis

17. Statement of Revenue • Revenue Account function numbers for counties begin with a 4 • Revenue Account function numbers for cities begin with a 3 • Revenue Accounts Include • Tax Levies • Sales of Assets • Charges for Services • Fund Transfers In • Revenue Accounts • Carry a negative or credit balance • A credit increases ending balance • A debit decreases ending balance

18. Statement of Revenue Reading the Report • Original Estimate and Amended budgeted amounts • Total Estimated Budget • Year-to-Date Realized • Percent Realized • Unrealized • Current Revenue

19. Statement of Expenditure & Encumbrances • Expenditure Account function numbers begin with 5-9 in counties. • Expenditure Account function numbers begin with 4-9 in cities. • Expenditure Accounts Include • Purchases made • Wages Paid • Capital Outlays • Fund Transfers Out • Expenditure Accounts • Carry a Positive or Debit balance • A Debit increase ending balance • A Credit decreases ending balance • Helpful in controlling the expenses incurred on a daily, monthly, and annual basis • Three types of reports: Standard – Summarized – by object • Very useful when budgeting

20. State of Expenditures & Encumbrances Reading the Report • Original Appropriations and Amendments • Total Appropriations • YTD Expenditures and YTD Encumbrances • Unencumbered Balance and Percent Used • Current Month Expenditures and Encumbrances

21. State of Expenditures & Encumbrances Over Expenditure?

22. Highlights • What is my General Ledger? • How other FlexGen processes affect the General Ledger • GL Reports you shouldn’t ignore • Manual Transactions • Bank Reconciliation • Month End

23. Manual Transactions A Manual Transaction is a transaction that is not generated by another process within the software. The user manually enters GL account numbers and debits and credits. From the main menu, choose Accounting Within the Accounting Menu, choose “Manual Transaction”

24. Transaction Types Within the Transaction Maintenance Menu Choose Transaction Type. Note: to choose the desired transaction type, you can use the arrow keys on your keyboard or type the corresponding letter associated with the transaction type.

25. Creating a Manual Transaction Transaction Type: This will default based on what is chosen on previous screen.

26. Creating a Manual Transaction Fund: Type fund number or Look Up F2 and choose fund number. Note: You can only post transaction for the fund selected.

27. Creating a Manual Transaction Transaction Number: Enter the transaction number or enter through to allow the system to assign the transaction number

28. Creating a Manual Transaction Transaction Date: Enter the date that you want the transaction to be posted the GL.

29. Creating a Manual Transaction Description: Enter a meaningful description Funct: F2 LookUp or Enter the account number for the transaction. Enter Debit and Credit amounts on corresponding lines.

30. Posting Manual Transactions To view posting options, select “2” Note: to choose the desired posting option, you can use the arrow keys on your keyboard or type the corresponding letter associated with the posting option.

31. Posting Manual Transactions Posting Option “A” Pre-Post Transaction Report will generate a report showing the transactions that are going to be posted. Review this report for potential errors.

32. Posting Manual Transactions Choosing Posting Option “C” Post Transactions by Type, will allow you to select and Post [F4] Choosing Posting Option “D” Post Individual Transaction, will allow you to select and post [F4] single transactions

33. Highlights • What is my General Ledger? • How other FlexGen processes affect the General Ledger • GL Reports you shouldn’t ignore • Manual Transactions • Check Reconciliation • Month End

34. Reconciling Bank Statements

35. Scroll Check Reconciliation Enter the Fund Number Enter Check No to start the scroll The instructions for reconciliation are displayed at the top of the window 1=Reconcile Enter=Skip Space Bar=Unreconcile

36. Batch Check Reconciliation • Automatically Reconciles all checksin the range entered • Select Check Type • Enter Ranges • Exercise Caution when using as No option to mass unreconcile

37. Reconciling Bank StatementsReconciling Checks by Diskette • If a county office, information available from your county trustee • Information provided on flash drive or disk • Automatically reconciles checks/warrants

38. Reconciling Bank StatementsFull Check Maintenance • Use Full Check Maintenance for making corrections to the Check Reconciliation file • To correct a reconciled check, locate the check using the Lookup options, then change the Check Status

39. Reconciling Bank StatementsReports • Use these reports to identify checks by status • Located in the Check Reconciliation menu • Each of the three reports provides you with a Selection box similar to the one pictured

40. Reconciling Bank StatementsUnreconciled Report • Unreconciled Checks Report • Provides total of unreconciled checks by account (Fund and Function) • Lists Check No., Date, Paid to the Order Of, Check Type (Pay or Ven) Reconciled status, and Amount

41. Reconciling Bank StatementsReconciled Report • Reconciled Checks Report • Provides total of reconciled checks by account (Fund and Function) • Lists Check No., Date, Paid to the Order Of, Check Type • (Pay or Ven) Reconciled status, and Amount

42. Reconciling Bank StatementsReconciled & Unreconciled Reports • Reconciled and Unreconciled (Both) Reports provides all the information presented in the two previous examples • Provides separate totals for Reconciled and Unreconciled checks

43. Reconciling Bank StatementsAccount Analysis – Cash Account • Most useful report in assisting with the reconciliation of bank statements • To run, select Account Analysis from the Report panel, then select Account from the Select order • Enter the Beginning and Ending Month and your Cash in Bank account number in the fields as shown in the Account Analysis Account Order Window.

44. Reconciling Bank StatementsAccount Analysis – Cash Account

45. Reconciling Bank Statements Balancing • Once all adjustments and entries have been identified and made to the Cash in Bank account • Possible Adjustments Include • bank service charges • authorized automated debits or credits • bank errors • A Balance Sheet will provide you with a close to real-time cash in bank balance

46. Reconciling Bank StatementsBalancing

47. Highlights • What is my General Ledger? • How other FlexGen processes affect the General Ledger • GL Reports you shouldn’t ignore • Manual Transactions • Check Reconciliation • Month End

48. Month-End Closing Before you begin… The following steps should provide you with a guideline for closing your Accounting month • Reconcile your checking account. • Ensure all entries for the month you are closing have been made to the General Ledger. All checks, receipts, and journal entries. • Verify balances on your Balance Sheet • Assets should have Debit balances • Liabilities should have Credit balances • Determine if you have paid all appropriate Liabilities, such as Insurance, Retirement, or Taxes. • You will also want to ensure your Fund is in Balance

49. Month-End Closing The Steps • Step 1 scans for unposted manual transactions • Step 2 builds G/L Control Account Records • Step 3 prints the Month-End accounting reports • Could be a lengthy process • Step 4 clears the Accounting Flags • Step 4 is the Point of No Return

50. Any Questions?