How do I set up the general ledger for a new company?
Build the calendar and years, the currencies, the chart of accounts, then the company's Ledger Setup, then journals and posting rules. A company can post its first voucher when it has a ledger, an open period, released accounts and a journal.
Steps
- Financial Calender - one calendar, such as July-June.
- Financial Year - the current year under it, Period Unit monthly, Period 1. Create builds the periods.
- Currency and Exchange Category - the currencies and one rate table.
- Account Grouping and Number - the chart and its groups with number ranges.
- Account Dimension and Account Structure - the dimensions the accounts will carry.
- Ledger Setup - calendar, chart, local and reporting currency with their exchange categories, and the account ranges with their structures.
- Currency Legal Entity - extend the local currency and every currency the company trades in, with rounding.
- General Ledger Setting - account numbering, Retained Earning Account, cash sub-categories.
- Accounts - see How do I build the chart of accounts?.
- Transaction Journal - at least a journal-voucher journal with a Posted (and Park) status, and one journal per kind of document of the other modules.
- Posting Profile - per module, the accounts of each post key. Check Process Post Key has a recipe for every posting screen.
- Tax - see How do I set up sales tax? and How do I set up withholding tax?.
Check it worked
- A General Entry dated today saves and appears on the Trial Balance.
If something looks wrong
- "Financial Year not found." Step 2 is missing for this date, or Ledger Setup points to another calendar.
- "Chart of Account is not defined for this Legal Entity." Step 6 has no Account Chart.