Menu path
System/Settings/General ledger settings
Finance/General Ledger /Charts of GL
Background
Storno entry allows user to select positive or negative sign of a transaction to be shown in front of the value/amount. It also allows user to debit or credit a transaction in reverse (for example, show a debit entry in the credit column) but this has to be set or maintained via the General ledger (GL) maintenance . Further enhancement will be implemented to display the P&L (Profit & Loss) transaction according to GL defined debit/credit or none with the correct sign of positive or negative which will reflects the amounts allocated on P&L General ledgers (their cumulative results and balances). For example: With this, user now has the option to select Debit (+), Credit (-) or None (+/-) (applicable to P&L only), and depending on the original accounting logic, the positive / negative sign will change accordingly per user's selection for transaction in P&L.
Scenario :
During the processing of a Sales Transaction, the following accounting logic will apply:
GL
Line Type
Debit
Credit
Debtor
Sales Invoice
1000
Revenue
Sale Invoice
Now, the following can happen with the above accounting logic:
Amount
+1000
-1000
What has been changed
This setting for Reversal Profit and Loss general ledger accounts is available for the following legislations:
Changes to GL Maintenance
In GL maintenance (menu path Finance/General Ledger /Charts of GL), a new selection option: None is added to the Balance field and is only applicable to P&L general ledgers only.
This new change is also shown on Results and Transaction section of GLs maintenance.
Debit all amount in debit side
Credit all amounts in credit side
None – display as the GLs nature (Expense =Debit , Revenue = Credit, Neutral =Debit) For example :When the setting is switched OFF and the Revenue GL 8000 is define as none from the balance field will set as credit balance automatically which follows the accounting principle.
In all areas where double entries are displayed, the views of P&L GLs will be displayed according to the Debit/Credit/None definition in the GL maintenance as follows:
Transaction line
(+ ) Debit
(+) Debit
Example on how the entries are presented when the setting Reversal profit and loss general ledger accounts is turned ON.
1. Create a Sales invoice with NEGATIVE differences written off to cost GL via Finance/Entries/Sales Journal. Cost of sales ,GLs account defined as debit balance in the GL maintenance .
Entries created with the results as below:
Looking at the new functionality, the following scenarios is handled correctly in the debtor/creditors card for rest of entries as follows : -
Sales invoice with POSITIVE differences written off to revenue GL
Purchase invoice with NEGATIVE differences written off to cost GL
Purchase invoice with POSITIVE differences written off to revenue GL
Purchase invoice with Standard cost price classic -Where Invoice price < Standard price
Stock count
Reversal entry
Revaluation entry – Gains and losses, for both debtors and creditors.
b) Purchase invoice with NEGATIVE differences written off to cost GL
c) Purchase invoice with POSITIVE differences written off to revenue GL
d) Purchase invoice with Standard cost price classic -Where Invoice price < Standard price
e) Stock count
-80
80
f) Reversal of reversal entry
g) Revaluation Gain entry
2. The display of the entries is determined by the definition defined in the GL maintenance. Applications affected are:
2. The displaHow entries created will determine how the presentation made. Applications involve are:
i) Finance/ Accounts Receivable/Cards – Display All view
Finance/ Accounts Payable /Cards – Display All view
Filter by None via debtor card /creditor card
Filter by GL - Debtors/Creditor card
Filter by offset account - Debtors/Creditor card
ii) Transactions /Our ref/ Your ref Buttons
When user click on the Transaction button. In the Entry screen shown, the Our ref or Your ref button can be clicked. This includes the display of double entries in the following menu paths where the Transactions, Our ref and Your ref buttons are available.
Finance/Entries/Sales Journal
Finance/Entries/Purchase Journal
Finance/Entries/Bank Cash Journal
Finance/Entries/General Journal
Finance/General ledger/Select/Search
Finance/General ledger/Analytical accounting
iii) Change Button
Changes required here is for reversal of Reversal entry. The scenarios mentioned above is again checked for display correctness in the Change button screen in the following views:
When the advance button is selected, the Transactions section will be shown.
The same functionality of the Change button can be started in the following menu path.
iv) Finance/General ledger/Cards - Card view and All view (including the lines and totals)
Revenue GL – Card view
The above display is also applicable to the resulting prints or exports from the GL cards.
v) Cost Center /Cost Unit Reports: Both Details and List Including the totals
a) Finance/General ledger/Cost centers/units/ Cost center
b) Finance/General ledger/Cost centers/units/ Cost unit
The selections of these reports affected are: Layout and Report = List /Detail
Group by GL
Group by Cost Centre or Cost Unit
c) Finance/General ledger/Cost centers/units/ Cost Centre Transaction
The double entries should be displayed according to the debit / credit definition defined in the GL maintenance.
vi) Finance /Reports/Interactive balance, in the Interactive Balance sheet, there are 4 views support this requirement.
a) Debit / Credit
In this view, the GLs lines balances are displayed in the correct side. Cost of sales GL with debit balance are displayed correctly as negative Credits. The cumulative totals that will not be influence by the GLs debit/credit definition. The balance totals for each category will display according to the sum of all GLs within the category.
b) Debit / Credit /Balance - The results shown according to the Debit/ Credit Definition of GL.
i )If GL defined as Credit
All amounts should be shown in Credit column and
The Balance should be shown as x,xxx C .
When GL has Debit balance show Balance as - x,xxx C
ii) If GL defined as Debit ,
All amounts should be shown in Debit column and
The Balance should be shown as x,xxx D .
When GL has Credit balance show Balance as - x,xxx D
c) Debit/ Credit/ Balance- Budget - The budget amount displaying as per the Debit/Credit definition of GL.
d) Balance - Amounts in balance column shown according to the Debit/ Credit Definition of GL.
i) If GL defined as Credit
When GL has Credit balance should be shown as x,xxx C .
ii) If GL defined as Debit
When GL has Debit balance should be shown as x,xxx D .
vii) Finance/ Report/ Balance /PL, the following views are affected: -
a) Trial Balance - The balances shown according to debit /credit definition of GL.
For P&L GLs only, show the amounts according to the debit/credit definition of the P&L GLs. The end result, only one amount will be shown either in the debit or credit column.
If the balance is Credit balance and the GL is defined with Debit it should show –x,xxx in the Debit column.
If the balance is Debit balance and the GL is defined with Credit it should show –x,xxx in the Credit column.
b) Balance sheet - The GL balances will displayed according to the debit/ credit definition of each GL. The sub totals and Totals is not Influenced by the debit/ credit definition of each GL.
c) Period Balance Sheet - GL display is already according to the Debit/ Credit definition in GL maintenance.
viii) Posting Reports
ix) Finance/General ledger/Select/Search
All scenarios mentioned also to be applied in the following areas of select search:-
Finance/General ledger/ Select/Search - export the report with Export button
Finance/General ledger/ Select/Search - print the report with Print button
x) Finance/General ledger/Analytical accounting
All scenarios mentioned also to be applied in the following areas of Analytical accounting:
xi) Closing entries - Storno Closing entries will NOT require any change and existing behavior remains.
Currently, when user processes P&L, the functionality of the Closing entries displayed as following:
a) Expense GL
b) Revenue GL
c) Neutral GL
When the GL Debit / Credit definition =NONE, the display of the P&L Closing entries will follows the existing Neutral GL.