1.
Ledger – Records all the
Financials Information.
2.
The Chart of Accounts is the
Heart of your Accounting
3.
Ledger is the Heart of your
Organization Financials Structure
4.
Ledger Types in OGL
4.1
Primary Ledger (Mandatory)
4.2
Secondary Ledger (Optional)
4.3
Reporting Ledger (Optional)
5.
Primary Ledger – Original
Ledger where all your business data are recorded and this is the ledger by
default integrated with Other Modules. We need to have at least one Primary
Ledger in our Instance to capture all our financial information and business
data’s.
6.
Secondary Ledger – Optional
Ledgers. The need of secondary ledger is mainly to implement the accounting
process as per the GAAP, Generally Accepted Accounting Principles. There might
be a variance on processing certain items while reporting to multiple
authorities. Such as Taxation, Depreciation Methods, Revaluation of Assets,
Inventory Stock Value, Accounting Principles such as classification of accounts
based on Expenditure or Assets such as Capitalized Assets or Capitalized
Expenditures. The Purpose of Secondary
ledger is if there is a change in Accounting Methods or Accounting Convention.
7.
Reporting Ledger – Optional
ledger. Can be configured either to Primary Ledger or Secondary Ledger or Both.
Reporting Ledger only if there is a change in Currency.
Ø One Primary Ledger can have multiple Reporting Ledgers
Ø One Secondary Ledger can have multiple Reporting Ledgers
Ledger Configuration
1.
Ledger Components (4 ‘Cs)
Ø Chart of Accounts (COA) – Accounting Structure of an Organization.
We can define our own COA, as per the flexibility of the organization to
capture the business data’s visibility in the Account Codes, Consideration of
Legal Prospective, Branches, Financials Reporting, Taxation Reporting, Multi
Organization structures
Ø Calendar – The Financials Year of the Organization, basically it
should be considered as per the country standards.
Ø Currency –Scales the Value of the Transactions. The currency is
depends on the location of the organizations.
Ø Accounting Convention – Optional – By default system will take
Standard Accrual Basis. To records the business transactions as per the
Accounting Principles. GAAP
2.
How many Ledger is required for
an Organization
Ø Depends on the Organization Structure of the Customers, Multiples
Branches, Multiple Businesses (LOB), Multiple Legistrative.
Ø If any of the 4’cs is different, from one business to another
business or one location to another location, we might required multiple
primary ledgers
Ø Single Organization Operates in Single Country
Ø Single Organization Operates in Multiple Countries
Ø Multiple Organization operates in Single Country
Ø Multiple Organization operates in Multiple Countries
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