Theory of operation

The General Ledger serves as a repository of Journal transactions of all sources.

These transactions come from specialized journals and from the General Journal.

>From these transactions, financial statements of all sorts are drawn up.

The main functions of the module are :

• Design Financial Statement
• Maintain Chart of accounts
• Add, Update, Reverse, Copy Journal Entries
• Produce Financial Statements

GL Module uses double entry bookkeeping.

By definition, debit amounts are positive and credit amounts are negative.

A journal entry balances when the algebraic sum of all its amounts is zero.

The General Ledger balances when the algebraic sum of all the journal entries is zero.

The trial balance is a complete list of account positive and negative balances.

Once a journal entry is posted to the GL, it is impossible to alter it.

A journal entry goes through 3 stages :

• In progress
• In instance of approval
• Posted.

A journal entry in progress does not necessarily balance. It is under construction, can be put aside and completed later on. A journal entry In Instance of approval balances but can still be alter. A Posted journal entry cannot be alter whatsoever.
The general Ledger Module can be used as a stand alone bookkeeping tool.