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General Ledger Configuration

This article is protected against manual editing because it is automatically generated from Openbravo meta-data. Learn more about writing and translating such documents.
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Contents

Introduction

The general ledger configuration drives the way that the organization's financial transactions are going to be posted to the ledger.

A general ledger configuration is created whenever an accounting csv file or "Chart of Accounts" module reference data is selected while running the Initial Client Setup process or the Initial Organization Setup process.
The general ledger configuration created by default can afterwards be customized to meet the organization's needs.

If the accounting csv file or reference data is selected at client level the general ledger configuration is assigned to the organization (*) therefore it is available to any organization within the client.
If the accounting csv file or reference data is selected at organization level the general ledger configuration is assigned to the organization making it available to that organization and any of its descendents.

Besides a general ledger configuration those accounting files also creates:

Openbravo delivers accounting files through:

Additionally, a general ledger configuration can also be created manually but once the corresponding Account Tree has been created.

Finally, it is important to remark that the organization's general ledger configuration and the organization's account tree (or chart of accounts) are linked to each other because "Account" is a mandatory dimension of the general ledger configuration.

General Ledger Configuration

The General Ledger Configuration window allows to review and maintain defaulted general ledger configurations and to create new ones if needed.

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A general ledger configuration created by default can be changed to meet the organization's needs by changing below features:

1. The Currency to use while posting transactions or journal entries to the ledger.

2. The Allow Negative check-box defines if negative posting is allowed or not while posting transactions to the general ledger.

Not to allow negative posting implies that a negative debit posting would turn into a credit posting and a negative credit posting would turn into a debit posting.

For instance, a purchase invoice generates below posting:

Account Debit Credit Comments
Product Expense Line Net Amount One per invoice line
Tax Credit Tax Amount One per tax line
Vendor Liability Total Gross Amount One per invoice

If that purchase invoice needs to be totally or partially voided or reversed, the posting will look like:

Account Debit Credit Comments
Product Expense (-) Line Net Amount One per invoice line
Tax Credit (-) Tax Amount One per tax line
Vendor Liability (-) Total Gross Amount One per invoice
Account Debit Credit Credit
Product Expense Line Net Amount One per invoice line
Tax Credit Tax Amount One per tax line
Vendor Liability Total Gross Amount One per invoice

3. The general ledger can be set as "Centrally Maintained" or not in relation to the way that the Account Tree elements are going to be shown in the Balance Sheet and in the Income Statement

It is possible to uncheck any of the checkbox listed above. For instance an organization might want to show the Debit balances of the "Expense" account type as "Negative" in the Income Statement.
Finally, it is important to remark that the "Central Maintenance" check-box is not selected by default for the general ledgers created by default as the corresponding accounting csv files or reference data imported have its own configuration through the "Account Sign".

Dimension

Dimension tab allows to configure the organization's general ledger dimensions or to add additional accounting dimensions do not centrally maintained in the client.

Openbravo allows to manage mandatory and not mandatory accounting dimensions to be entered in the Dimensions section of the documents which can be post to the ledger.

Mandatory dimensions can be filled in or not depending on the document category being created. For instance "Business Partner" and "Product" are mandatory dimensions that need to be filled in a purchase invoice but can be filled in a G/L Journal.

There are two "mandatory" dimension at organization's general ledger configuration level which are:

Besides, if an organization belongs to a Client which centrally maintains the accounting dimensions it is possible to add in this tab other dimensions such as the ones listed below which can even set as "mandatory" for the organization:

On the other hand, let's take for instance an organization's general ledger for which below dimensions have been selected in this tab because the organization belongs to a client which does not centrally maintain the accounting dimensions:

Above configuration means that every time that a transaction of any kind (purchase invoice, sales invoice, G/L Journal) is posted to the ledger all the mandatory dimensions above must be entered while there is an option to enter sales region information if any.

Moreover:

Active Tables

Active Tables tab allows to define which tables and therefore transactions are going to be post to the ledger and which ones not.

The tables listed below are the tables suitable to be posted:

Table name Window
FinancialMgmtAmortization Amortization
Invoice Purchase Invoice
Sales Invoice
Order Purchase Order
Sales Order
FIN_BankStatement Financial Account - Bank Statement
FIN_Finacc_Transaction Financial Account - Transactions
FIN_Payment Payment In
Payment Out
FIN_Reconciliation Financial Account - Reconciliation
FinancialMgmtGLJournal General Ledger Journal
MaterialMgmtShipmentInOut Goods Receipt
Goods Shipment
MaterialMgmtInternalConsumption Internal Consumption
MaterialMgmtInventoryCount Physical Inventory
ProcurementReceiptInvoiceMatch Matched Invoices
ProcurementPOInvoiceMatch Matched Purchase Orders
MaterialMgmtInternalMovement Goods Movement
MaterialMgmtProductionTransaction Work Effort
Bill of Materials Production
FinancialMgmtBankStatement Old payment flow - Bank Statement
Set to Active = No
FinancialMgmtCashJournal Old payment flow - Cash Journal
Set to Active = No
FinancialMgmtDPManagement Old payment flow - Debt-payment management
Set to Active = No
FinancialMgmtSettlement Old payment flow - Settlements
Set to Active = No

For instance the records of the table "FinancialMgmtAmortization" are the amortization transactions which can be posted.

The way to get that the records of the tables above can be posted is to set the "Active" check-box of these tables as "Yes".

There is a flag named "Disable for Background" next to each table above which allows that a given table is not taken by the Accounting Background Process.

In other words it is possible to configure that the transactions related to a given "Table", for instance the "Invoice" table, are not taken by that process therefore will not be automatically posted.

Documents

Documents tab allows to define which document types of a table allow negative posting and if they use a different accounting process than the default one based on a given accounting template.

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General Accounts

General accounts tab allows you to define the accounts to be used in balancing entries and in the end-year closing process.

The mandatory "Income Summary" account is populated by default as part of the general ledger configuration. That account is obviously part of the organization's chart of accounts.

If an accounting csv or reference data is not selected while running the Initial Client Setup process or the Initial Organization Setup process, this mandatory account needs to be manually entered here once the account tree and therefore the corresponding income summary (or net income) sub-account has been created.

WS200.png

The Income Summary account is used by the Close Year process as the P&L closing entry resets all revenue and expense account type and post the difference in this account.

This tab also contains a set of "Suspense" accounts which needs to be created under a specific account tree branch as explained in the Account Tree creation article.
Those accounts can also be provided by the accounting files, in fact the Generic CoA provides these accounts.

The Suspense Balancing account is shown if the check-box "Suspense Balancing Use" is selected. This account is used in those cases where an accounting entry can not be balanced while being posted. If there is no account in this field Openbravo shows an error.

The Suspense Error account is shown if the check-box "Suspense Error Use" is selected. This account is used in those cases where an exception or error happens preventing an accounting entry to be posted. If there is no account in this field Openbravo will shown an error.

Other accounts are:

Finally, the Reverse Permanent Account Balances check-box allows to include or not an entry to reverse the balance sheet accounts balances during the end year closing process.

Defaults

Defaults tab allows to maintain or to add a set of default accounts to use while posting a certain type of transactions.

The mandatory "Default" accounts are populated by default as part of the general ledger configuration. That accounts are obviously part of the organization's chart of accounts.

If an accounting csv or reference data is not selected while running the Initial Client Setup process or the Initial Organization Setup process, these mandatory accounts need to be manually entered here once the account tree and therefore the corresponding sub-accounts have been created.

The accounts selected here are defaulted to every Business Partner Category or Product Category for instance by using action button "Copy Accounts".
Same way the accounts defaulted to every business partner category for instance, can be as well defaulted to every vendor or customer by using the action button "Copy Accounts" this time from the Business Partner Category window.
Finally it is possible to override these defaults at business partner category level allowing vendor liabilities and customer receivables for different business partners to be posted to different accounts.
This last configuration change needs to be done in the vendor and/or customer windows.

WS252.png

As shown in the image above "default" accounts are:

These last ones belongs to the old financial flows so will be removed in further Openbravo 3 releases:

Creation of a General Ledger Configuration

An Organization might have as many different General Ledgers as required.

By default an organization can have only one general ledger assigned for simplicity reasons unless:

It is recommended to create a new general ledger configuration and link it to an organization once the Account Tree to use while posting transactions to that new general ledger has been created.

It can happen that an organization might require the same account tree but different general ledgers, one of them in USD and the other one in EUR.

The steps to follow to configure a general ledger are:

Once done the newly created general ledger needs to be linked to F&B US Inc organization in the General Ledgers tab.

The organization of the example has now two general ledgers assigned:

Back to the General Ledger configuration window the remaining steps to take to properly configure the general ledger are:

Navigate to the Dimension tab to add below listed mandatory dimensions:

Non mandatory dimensions can also be created as described below in case it is required to save additional information such as the business partner or the project while posting journal entries or any transaction type:
- create a new record and enter "Business Partner" in the field "Name"
- select "Business Partner" in the field "Type"
- create a new record and enter "Project" in the field "Name"
- select "Project" in the field "Type"

Navigate to the Active Tables tab to review the tables which are going to generate accounting. It is possible to enable accounting for the ones do not active for accounting.

Navigate to the General Accounts tab to configure the mandatory general account (Income Summary) as well as the accounts to use in case of suspense balancing or suspense error among others. Those accounts needs to be previously created as described in the Account Tree creation article.

Finally navigate to the Defaults tab to configure the default accounts which needs to be copied to other accounting configuration tab such as:

as every time that a transaction of any type is posted to the ledger, it will posted to the two general ledgers configured for the Organization.



Full list of General Ledger Configuration window fields and their descriptions is available in the General Ledger Configuration Screen Reference.

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