The “Record to Report” process, also known as “Account to Report” or simply General Ledger process, refers to the maintenance of general ledger law from the recording of transactions to the preparation of trial balances for the transaction. unit and consolidated financial results of the reporting company.
Bookkeeping is an essential accounting activity that provides the solid financial foundation on which an organization rests. The accuracy and integrity of the financial statements an organization produces largely depend on the accuracy and integrity of its record keeping activities. Entering journals and reviewing and posting to ledgers are the two main bookkeeping activities. Logs are where all transactions are first recorded on a daily basis. Information from a journal is then recorded in ledgers to update each account. Various accounts in the ledgers are then summarized, tested and validated, and used to produce financial statements at the end of an accounting period.
Here we will help you understand basic accounting concepts and introduce you to the process of entering journals, reviewing, summarizing entries, reconciling, and finally reporting and closing an accounting period. This section of will help you understand the fundamentals of an effective automated general ledger system and the concepts explain all the important GLs including how to analyze a transaction, post it to the appropriate journal, and then view it in great books. We assure you this is the best place to learn the registration process to report!!
Reversal journals are special journals that are automatically reversed after a specified date. A reversing entry is a journal entry to “undo” an adjusting entry. When you create a reversing journal entry, it reverses the accounting impact of the original entry. Canceling writes makes it easier to record resulting transactions by eliminating the need for certain compound writes. See an example of a reverse journal entry!
Explore the concept of journal reversals and understand business scenarios where users may need to reverse journal entries that have already been entered into the system. Understand common sources of errors that cause entries to be voided and learn how to fix them. Discuss reversal of adjusting entries and reversal functionality in ERPs.
A “recurring log” is a log that needs to be repeated and processed periodically. Recurring entries are business transactions that repeat on a regular basis, such as fixed rent or insurance to be paid monthly. Learn about the different methods that can be used to generate recurring logs. Check out some examples and explore the generic process for creating recurring logs in any automated system.
In most automated financial systems, you can define more than 12 posting periods in a fiscal year. This article explains the concept of the period and the benefits of having adjustment periods. Adjustment periods present inherent challenges for users of financial statements and there is a workaround for those who do not want to use adjustment periods.
Unearned revenue is a liability for the entity until the revenue is earned. Learn the concept of unearned income, also known as deferred income. Gain an understanding of business scenarios where organizations should store their receipts as unearned. Examine some concrete examples and understand the accounting treatment of unearned income. Finally, look at how the concept is handled in ERPs or automated systems.
There are two commonly used methods of accounting – cash accounting and accrual accounting. Understand the difference between accruals and repossessions. Recap the previous discussion we had on accruals and reversals and see the comparison between these two different but related accounting concepts. Understand how the action of accumulating causes reversals in the accounting cycle.
There are two basic types of journals: general and special. In this article, the learner will understand the meaning of journaling and the steps required to create a journal entry. This article will also discuss types of journals and help you understand general journals and specialized journals. Finally, we will explain the impact of automated ERPs on the journaling process.
Accrued expenses, sometimes referred to as accruals, are expenses that have been incurred but have not been recorded in the accounts. Discuss the need to record accrued liabilities and why they require an adjusting entry. Understand the treatment of these entries once the accounting period is closed and learn to differentiate when commitments become liabilities.
An allocation is a process of transferring overhead costs to cost objects, using a rational allocation basis. Understand what allocation means in the accounting context and how defining mass allocations simplifies the process of allocating overhead to different accounting segments. Explore allocation types and see some practical examples of mass allocations in real business situations.