General Ledger - Boost Your Accounting Efficiency

General Ledger Overview

A General Ledger, often referred to as GL, Ledger, or Nominal Ledger, is a vital component of accounting and bookkeeping for maintaining a comprehensive record of all financial transactions within a company. It serves as a central repository for financial data.

Sub Ledgers

The General Ledger is updated through General Ledger Journals and various sub-ledgers, including Accounts Payable, Accounts Receivable, Fixed Assets, Inventory, Job Projects, and Payroll/HR. These sub-ledgers house specific financial information that is summarised and recorded in the General Ledger.

Chart of Accounts

In the context of accounting, a company’s Chart of Accounts plays a significant role. Each account within the Chart of Accounts corresponds to a Ledger account, which is categorised by account type, such as Income, Expenses, Assets, Liabilities, and Equity. The collection of categorised Ledger accounts forms the General Ledger, offering a comprehensive overview of the company’s financial activities.

Income Statement

From the data recorded in the General Ledger’s income and expense account categories, critical financial statements like the Income Statement (Profit and Loss or P&L) and Balance Sheet are generated, providing insights into the organisation’s financial performance and position.

Integration

SapphireOne Enterprise Resource Planning (ERP) Software is designed to streamline financial processes by automatically updating sub-ledgers and the General Ledger with data sourced from the SapphireOne data file. This integration ensures that all financial information is consistently recorded and accurate, enhancing efficiency and accuracy in financial management.

One distinctive feature of SapphireOne is its high level of customisability within the General Ledger. Users have the flexibility to create up to forty-five unique identifiers that are fully reportable, searchable, and sortable, catering to specific reporting needs.

Reporting

Furthermore, users can set up 13 reporting levels in the Details and More Details pages for each General Ledger account. Additional customisation options include adding 12 GL Alpha fields, 8 Real fields, 10 Numeric fields, 2 Text fields, and 10 user-defined fields on the Custom page. This unparalleled level of customisation sets SapphireOne apart from other ERP General Ledger solutions, enabling users to tailor their General Ledger to meet their specific reporting requirements effectively.

General Ledger Inquiry Overview

To access a General Ledger Inquiry please go to:
Accounts mode > General Ledger > General Ledger inquiry.

General Ledger Inquiry functionality is vital to your organisation, providing SapphireOne users with unlimited access to information held within each General Ledger account.

The General Ledger Inquiry screen, displays General Ledger accounts in the Master or local currency only. For information regarding Foreign Exchange General Ledger details, please refer to the SapphireOne FX General Ledger Inquiry screen.

The General Ledger Account ID’s and Names listed above, along with their corresponding account Class, provide a clear indication of each account’s intended purpose and the financial data it contains.

In the second-to-last column labeled Side, is the default side (Credit Cr or Debit Dr) that each General Ledger account operates on. This which provides an insight into the type of financial data contained in the account. The last column, labeled Balance, displays the current balance of each General Ledger account.

After highlighting a General Ledger account and either Viewing or Modifying it, the Page menu becomes available, allowing you to access additional pages of information about the account.

For audit purposes, it is not possible to delete any General Ledger accounts in the SapphireOne General Ledger Inquiry screen.

However, users have the option to mark any General Ledger account as inactive. During normal operations, SapphireOne only displays and prints active accounts.

How to Customise the Inquiry Screen

The General Ledger Inquiry window displays all General Ledger accounts for the Company that the user is currently logged into. These are sorted by General Ledger ID in ascending order by default.

You can easily change the sort order by clicking on any of the column headings. Additionally, you can toggle between ascending and descending order by clicking the column heading again.

To adjust the order of the columns in the General Ledger Inquiry window, simply click and drag the column to the desired position. Similar to other List Windows, you can also re-organise the displayed information by highlighting and utilising functions from the Options Menu. 

You also have the ability to swap to a Custom Inquiry Screen as detailed below.

Details Page

In the Details Page of a General Ledger Inquiry, it’s important to note that when the Bank Account checkbox is selected, additional data fields need to be entered. For the sake of this documentation, we will include the additional bank account data entry fields. However, for non-bank account general ledger accounts, all other data entry fields remain exactly the same.

Non Bank Account G/L

Here’s how the Details Page appears for non-bank account general ledger accounts. Take note of the significant space below the Data Entry Controls area, which is reserved for displaying banking details if this were a bank general ledger account.

Bank Account G/L

When the Bank Account Checkbox is selected, the Details Page undergoes a transformation. It incorporates supplementary data entry fields for Bank Details, Vendor Narrative, and Payroll Narrative data input. These fields are crucial for the necessary additional data entry when the G/L account is a bank account.

General Ledger Area – Data Entry

• Account ID – Enter as required. SapphireOne adds the Department ID in this case 0 to the end of the Account ID and enters the Full Account ID as 1000-0.
• Account Name – Enter as required
• Company & Company Name – The company used in the screenshot above is 0, zero, as an example. This ID and name is drawn from the set up of your Company in Utilities > Controls > Company.
• Department – SapphireOne appends the Department ID to the end of the Account ID to determine the Full Account ID. For example, 1000-0.
• Active Checkbox – Users have the option to deactivate General Ledger accounts as needed, but SapphireOne will not allow accounts that are essential for proper system operation to be deactivated. In such cases, an alert will be displayed to notify the user.
  • Inactive Accounts – It is important to exercise caution when deactivating General Accounts, as once they have been made inactive, SapphireOne will be unable to access these accounts for data entry purposes until they have been reactivated again.
  • Reports – Although General Ledger accounts may be marked as inactive, users still have the option to include them in reports generated by Sapphire Standard Financials. Users can choose to include inactive accounts with no balances or include all active and inactive General Ledger accounts in the report.
• Bank Account Checkbox – The Bank Account checkbox in SapphireOne is a critical feature that significantly impacts the behavior of a General Ledger account. When you select this checkbox for a specific account within your chart of accounts, it triggers unique functionality and additional data entry options. Here’s an overview of what happens when you mark the Bank Account checkbox:
  • Additional Data Entry Fields – By selecting this checkbox, you unlock extra fields and options specific to bank accounts on this page. These fields are designed to capture essential banking information efficiently.
  • Distinct Behavior – Accounts marked as bank accounts in SapphireOne are treated differently from other general ledger accounts. This distinction helps in accurate and streamlined financial record-keeping.
  • Banking Transactions: – Bank accounts can be used for processing banking transactions such as deposits, withdrawals, and reconciliations. The system adapts to accommodate these activities seamlessly.
  • Bank Reconciliation – The Bank Account checkbox is crucial for bank reconciliation processes. It ensures that your bank account data aligns correctly with your bank statements.
  • Financial Reporting – The presence of this checkbox affects how bank account balances are displayed and utilised in financial reports, making it easier to track and analyze financial information.

In summary, the Bank Account checkbox in SapphireOne is a fundamental setting that distinguishes bank accounts from other general ledger accounts. It unlocks tailored features and fields to simplify banking transactions and financial management within the software.

Reporting Groups Area – Data Entry

It is important to establish General Ledger Classes prior to creating General Ledger accounts.

You can create these classes by navigating to Accounts > General Ledger > Class Inquiry.

• Class ID – Enter the Class ID.
  • Group & Report – The Group and Report positions in the Class file, determine the structure of your Income Statement and Balance Sheet, and are read to ensure proper functionality.

Data Entry Controls Area

In this Data Entry Controls area, it’s important to note that even when the General Ledger account is not a bank account, the items within this section will still be utilised. The data entry procedure remains consistent, whether it is a bank account or not.

• Debit CreditRadio Buttons – When creating a General Ledger entry, you must specify whether it should be placed on the Debit or Credit side of the account.
  • It is important to note that the selection of the Debit or Credit side is primarily a preference for the trial balance and when entering payments and receipts.
• Project RequiredCheckbox – If this cheque box is selected so far one will display an alert that a project for the transaction must be entered.
• Project Data Entry Field – A single Project may be entered for each G/L account.
• More Button – If the linking of a G/L account to multiple Projects is required please select the More button. The SapphireOne will then display a list of all Projects in the system. There is a checkbox for each Project in a column on the right-hand side of the screen. Tick the Projects that are to be linked to this G/L account
• Tax Code – Enter the Tax Code that is to be used with this G/L account.
• Tax Rate – When the tax code is entered Sapphire one will enter the percentage of tax linked to the tax code selected. This should not normally be altered by a user.

Bank Details Area (Bank Account G/L)

Within the General Ledger, SapphireOne has the capability to identify any account as a bank account. By selecting this default, it automatically activates additional functionality within the General Ledger, thereby facilitating the management of bank account information. The following options are available.

• FX Button – This Foreign Exchange button is only active when a new General Ledger account is being created and allows the creation of foreign exchange bank accounts. Once the bank account has been created the button will become inactive.
• Cheque Button – When this button is selected the user will be asked to enter in a cheque number. This could be a cheque number commencing a bank account or the continuation of cheque numbers. Once the number is entered Sapphire one will automatically increment the cheque numbers as entered.
• Card Nº – The credit card Nº of the organisations credit card.
• Expiry Date – The credit care expiry date of the organisations credit card.
• CCV – The credit card CCV of the organisations credit card.
• Overdraft – The organisations bank accounts overdraft amount.
• Media File Format – Select a media format appropriate to your banking requirements.
• Bank Name – The name of your financial institution for your organisations bank account.
• ID – The ID of your financial institution for your organisations bank account.
• BSB – The BSB number of your financial institution for your organisations bank account.
• Bank Account – The Bank Account number of your financial institution for your organisations bank account.

Vendor ABA Narrations Area (Bank Account G/L)

The following fields, once populated, allow for the generation of narrations formatted with an appropriately descriptive naming convention for uploading to your financial institution account.

• Header Notes – The value of this field appears as the description on the line of your bank statement.
• Line Notes – The value of this field appears as the description on the line of your Vendors bank statement.
• Self balancing Notes – The value of this field appears as the self balancing description on the line of your bank statement.

Payroll ABA Narrations Area (Bank Account G/L)

• Header Notes – The value of this field appears as the description on the line of your bank statement.
• Line Notes – The value of this field appears as the description on the line of your Vendors bank statement.
• Self balancing Notes – The value of this field appears as the self balancing description on the line of your bank statement.

The following fields, once populated, allow for the generation of narrations formatted with an appropriately descriptive naming convention for uploading to your financial institution account.

Custom Page

Custom Page Overview

SapphireOne’s Custom page features text fields designed for versatile, user-defined purposes. Each field is assigned a variable by SapphireOne, which is displayed as the default field heading label. Users can take note of the desired field or heading variable for customisation and modify it by navigating to Utilities > Controls > Change Names. Detailed instructions on this process will be provided below.

The Custom page is organised into the following sections:

• Alpha – Allows letters and numbers, but cannot be used for arithmetic functions
• Real – Allows numbers only, and can be used for arithmetic functions
• Date / Time – Date fields store date values and can be used for date functions, while Time fields store time values and can be used for time functions
• No Heading Defined – Features eight alphanumeric fields that cannot be used for arithmetic functions
• Text – Accepts letters, numbers, and special characters, but cannot be used for arithmetic functions

The data entry fields in these Custom Pages can also be employed in Sapphire Custom Reports, Quick Reports, Custom Inquiries, 4D View Pro, and 4D Write Pro Reports, just like any other data entry fields within SapphireOne.

The example Custom Page below is from an Asset Inquiry; however, the process for customising this page remains the same, irrespective of the function in which the Custom Page is located.

Default Variable Values

In the default variable values defined by SapphireOne, the first number signifies the position of the field within the group, while the second number denotes the maximum number of characters for the data entry field.

For instance, ASAlpha_1_20 indicates that it is the first data entry field in the group and can hold up to 20 characters. Similarly, ASAlpha_8_80 shows that it is the eighth data entry field in the group, with a capacity for a maximum of 80 characters.

General Ledger Inquiry Balances Page

The General Ledger Inquiry Balances page tracks the current year General Ledger balances for an account. This account may contain up to 30 accounting periods within a single year. Additionally, it includes balances from the previous year.

By selecting the Find Period Audit Line button, users can choose a period to view a breakdown of all audit lines that contributed to the balance for that period.

General Ledger Inquiry Budgets Page

This General Ledger Inquiry Budgets page enables users to create budgets for a specific General Ledger account.

By selecting the drop-down menu labeled Fill Next Years Budget To Revised, users can choose from various actions. Once an action has been selected, users can execute it by clicking the Budget Fill button.

General Ledger Inquiry Loan Page

The General Ledger Inquiry Loan page enables users to set up a loan associated with a specific General Ledger account. Once established, the SapphireOne will automatically generate a journal based on the loan’s installment dates.

General Ledger Inquiry Analysis Page

This page provides users with the ability to review a line graph of their current, last, and next balances.

General Ledger Inquiry Audit Lines Page

This Audit Lines page displays a detailed breakdown of all audit lines that comprise the balance for a General Ledger account. By default, this includes all unposted transactions.

• Exclude Unposted – This excludes un-posted transactions from the display.
• Look Transaction – You may select an Audit line and look at the transaction that created them.
• Open in Inquiry – This open an inquiry window for all audit lines currently displayed.
• Complete History Checkbox – Displays all audit lines for this General Ledger account.
• Recent History Checkbox – Displays the last 12 month audit lines for this General Ledger account.

Keywords and Notes Page

Keywords & Notes Overview

The Keywords and Notes page is a standard feature found on all inquiry pages in SapphireOne, providing a central location to add and manage keywords and notes for each record.

Keywords Area

The Keywords and Notes page is consistent across all inquiry pages in SapphireOne. Users can add customisable keywords to the list and reuse them. Additionally, keywords can be added that apply specifically to the current record. To remove keywords from the list, users can hold down the Command key on a Mac or the Ctrl key on Windows.

Notes Area

The notes area serves as a diary, allowing users to enter notes and include a date and time stamp by clicking on the green clock button. Users can also customise the font, style, colour, and background colour of the text in the Notes area by highlighting it and right-clicking.

Documents Page

Documents Page Overview

The Documents Page centralises document and information storage for transactions and master tables, streamlining organisation and management for easy access and improved efficiency.

Documents Area

The Documents Page simplifies file management by allowing various document types to be attached via drag and drop, including PDFs, spreadsheets, photos, and more. It provides a centralised location for document and information storage for transactions and master tables, streamlining organisation and management for easy access and improved efficiency.

Documents can only be attached once the corresponding record has an assigned ID.

Documents List Screen Options

There are eight buttons on the Document List screen, as follows:

1. Open – Allows viewing of the currently selected document.
2. Update – Prompts the user to import a new version of the selected document while maintaining links to any associated transactions.
3. Scan – Accesses a scanner for scanning documents directly into the data file and linking them to the current transaction (requires a compatible scanner with software).
4. Save – Saves the currently selected document.
5. Link Document: Enables linking of the selected document to other transactions in the data file, presenting a popup for user selection.
6. Link Document – Allows linking of an existing document in the data file to the current transaction or record, displaying a popup with a list of documents to choose from.
7. Link Existing Document – Allows linking of an existing document in the data file to the current transaction or record, displaying a popup with a list of documents to choose from.
8. Delete – Deletes the currently selected transaction or record.
9. Add – Displays a search function for selecting a document from the local computer or device.

Details Area

The Details area allows users to add a custom name, description, and tags to each document, enabling easy search and location of specific documents. These details can be customised to meet the specific needs of the user or organisation, further improving the efficiency and organisation of the Documents Page.

Last Modified Area

The Last Modified section displays the date and time when the document was last modified, as well as the user who made the changes. This feature helps maintain accountability and enables efficient tracking of document modifications.

History Area

The History area records changes made to the document, including the date, time, and user who made the changes. This provides a valuable tool for tracking and managing document revisions.

Links Area

The Links area allows users to record links to other places where the document has been attached. Links can be added or removed using the (+) and (-) buttons, providing an efficient way to manage and organise related documents.

Notes Area

The Notes area allows users to add any relevant notes related to the document. Clicking the green clock button will add a date/time stamp, further improving document tracking and management.

GL Budget Tools

The Sapphire GL Budget tools allow the user to modify multiple General Ledger budgets simultaneously, by selecting or highlighting all relevant items on screen. These tools are listed in the Sapphire Tools menu and enable bulk management of budgets.

• Copy Last Year’s Actual Into Budget – This Sapphire tool will copy this years Actual expenditure in to a budget for next year
• Copy This Year’s Budget into Next Year – The Sapphire tool will copy last years Budget into next years.
• Copy This Year’s Actual into Next Year – The Sapphire tool will copy this years Actual balance into next years.
• Copy Budget to Revised – Copy the current budget to a Revised Budget.
• Copy Revised to Budget – Copy a Revised budget into an actual budget.
• Swap Budget and Revised – Swap the Budget and Revised Budget values.

Find out more about a specific GL Budget tool functionality here.

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