General Ledger Knowledge Base

General Ledger Module Documentation

Overview

The General Ledger (GL) module is the core of the financial accounting system. It manages the chart of accounts, journal entries, financial periods, and generates financial statements including Balance Sheet, Income Statement, and Trial Balance.

Key Features

  • Chart of Accounts: Hierarchical account structure with multiple levels
  • Journal Entries: Manual and automated journal vouchers
  • Financial Periods: Period management with opening/closing controls
  • Opening Balances: Initial balance entry for new fiscal years
  • Year-End Closing: Automated closing entries and balance forward
  • Multi-Currency: Support for transactions in multiple currencies
  • Deferred Revenue: Recognition scheduling and automation

Getting Started

1. Chart of Accounts Setup

Configure your chart of accounts with the following account types:

  • Assets (Current, Fixed, Other)
  • Liabilities (Current, Long-term)
  • Equity (Capital, Retained Earnings)
  • Revenue (Operating, Other)
  • Expenses (Operating, Administrative, Other)

2. Financial Calendar

Set up your fiscal year and define financial periods (monthly, quarterly, or custom).

3. Opening Balances

Enter opening balances for all balance sheet accounts when starting a new fiscal year or migrating from another system.

Module Components

Journal Vouchers

Create and manage journal entries with full audit trail. Supports:

  • Manual journal entries
  • Recurring journals
  • Reversing entries
  • Multi-currency transactions

Financial Periods

Control posting to specific periods. Periods can be:

  • Open - Allows new postings
  • Closed - No modifications allowed
  • Locked - Permanent closure

Opening Balances

Enter initial balances using the Opening Balance Equity account as a temporary clearing account.

Year-End Closing

Automated wizard for:

  • Closing income and expense accounts
  • Transferring net income to retained earnings
  • Creating opening balances for new year

Deferred Revenue

Manage revenue recognition schedules for services billed in advance.

Reports

  • Trial Balance
  • Balance Sheet
  • Income Statement (Profit & Loss)
  • General Ledger Detail
  • Account Statement
  • Journal Register

Integration

The General Ledger receives postings from:

  • Accounts Receivable (Customer invoices and receipts)
  • Accounts Payable (Vendor bills and payments)
  • Inventory (Stock movements and adjustments)
  • Cash & Bank (Bank transactions)
  • All vertical modules (Courier, Logistics, etc.)