CloudAccountng General Ledger Book 7

Getting to Know CloudAccounts GeneralLedger License Agreement and Copyright Notice CloudAccounts® is a Trademarked, Licensed and Copyrighted product of SBS LLC. The license is the full agreement between the owner of CloudAccounts®, SBS LLC and you, the user. It is located on every copy of CloudAccounts® under HELP. CloudAccounts® is copyright 2020 by SBS LLC. All rights are reserved. All other brand or product names and/or trademarks belong to their respective holders. Restrictions

By purchase of these digital manuals, user agrees not to in any way, copy, resell or redistribute their content in either whole or partial form. This digital download makes use of encrypted serial tracking to tie a unique identifier to the original purchaser, who is solely responsible for adherence to this restriction under law. Disclaimer All SBS Software, documents and files are provided “as is” without any warranty as to their suitability for any particular purpose. No title or ownership is implied or expressed nor are there any guarantees against infringement on other works or plagiarism. By using the software, documents, files or information, you assume the entire risk as to its quality and performance. Should it prove defective in any manner, you, and not SBS LLC, assume the entire risk and cost of any necessary servicing and repair. Acknowledgements / Special Thanks Many thousands of businesses and people have contributed heavily to the success of this software over the past 30 years. Special thanks, however, are due the many faithful and dedicated customers of SBS. SBS L.L.C. Table of Contents General Ledger................................................................... 2 Bank Reconciliation..................................................................1 Budgets ....................................................................................6 New/Edit Budget...................................................................6 Budget Variance.................................................................11 Chart of Accounts...................................................................14 New GL Account ................................................................14 Edit GL Account .................................................................14 Assign Summarization........................................................21

Journal Entries .......................................................................25 New Journal Entries ...........................................................25 Edit Journal Entries ............................................................28 Close Year .........................................................................32 Post Journals Now .............................................................35 Reverse Postings ...............................................................36 Recurring Ledger Entries........................................................39 New Recurring Entries........................................................39 Edit Recurring Entries.........................................................39 Post Recurring Entries........................................................45 i

Bank Reconciliation This screen performs a Bank Reconciliation between any account set up in CloudAccounts as a Payment/Checking Account and the balance in the General Ledger. Transactions can be marked as cleared and the reconciliation difference is displayed on the screen. 1. From the Main Menu, select Ledger -> Bank Reconciliation. 2. Your screen should look similar to this: 3. Enter the following information: a. Bank Account: Select a Bank Account from the drop-down list. The accounts shown here are the accounts you have set up in the Admin -> Setup - Payables -> Checking Accounts screen. b. End Bank Statement Date: Enter the date of the bank statement. It is recommended to always use the period-ending date from your bank statements. Each transaction carries the date of the reconciliation when saved as cleared. This enables you to match your bank statement with your CloudAccounts balance. 4. To continue with the reconciliation, click on the 1

Next button. 5. Your screen should look similar to this: 2

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6. Enter the following information: a. Bank Statement Ending Balance: Enter the ending balance from your bank statement for this period. b. Interest Earned: Enter any interest earned on your bank statement. c. Service Charges: Enter any service charges on your bank statement. d. Transactions: Place a checkmark on the transactions that appear on your bank statement. NOTE: Transactions appearing on the screen that cleared on a previous statement should be cleared in CloudAccounts under that period ending date. Return to the previous screen and mark them cleared on the Bank Reconciliation for the statement where they appeared. e. Select a range of checks: You can select a range of checks by entering the range of check numbers in the From / To boxes at the top of the list of Uncashed Checks. Important: Place a check mark in the box following the ending check number to select the checks or leave the box blank to unselect the checks. Click the Go button to select/unselect the individual checks. 4

7. To return to the previous screen WITHOUT SAVING your changes, click on the Back button. 8. To save the marked transactions as cleared, click on the Save button. 5

Budgets New/Edit Budget A budget is an itemized summary of probable expenses and income for a given period. Budgeting is an essential business function as it allows owners/managers to plan and prepare for any impending changes. It is a useful tool for monitoring expected performance with actual performance. This gives the owners/managers the opportunity to control the business performance and implement strategies that will solve problems. From Main Menu select Ledger -> Budgets -> New/Edit Budget. Your screen should look similar to this: 6

PART A: Update an Account Budget 1) If you would like to Update an existing budget (if you have created multiple budgets for this period you will be able to edit them all), enter the Fiscal Year to update in the Fiscal Year Begin box. 2) Enter the General Ledger Account to budget (or a partial account) to bring up a list of possible matches. NOTE: Must have entered a Budget Name before you can budget a specific account. 3) Click the Edit button. Your screen should look similar to this: 7

Each budget will show, giving you the chance to change the amounts in each of the months for the year. 4) Update any budget amounts you would like to change in the appropriate boxes. (Do NOT enter sales as negative for budgeting!) 5) Click the Save button to save your updates. 6) If you need to update or add more budgets, click the Back button. PART B: Add a Budget 8

1) Enter the fiscal Year to add in the Fiscal Year Begin box. 2) Enter the name of the new budget in the Budget Name box. 3) Choose where you would like to copy budget data from in the Copy Budget Data from pull-down list. 4) Click the Add button. After your new budget is added, a message will display, similar to this: 5) If you need to update or add more budgets, click the Back button. PART C: Edit/Delete a Budget 1) Select the budget you wish to edit or delete from pulldown list. 2) Click the Delete button if you would like to delete a budget. 3) Or click the Edit button to change the name of the budget. Your screen should look similar to this if editing: 9

4) Make any changes to the Budget Name. 5) Click the Save button. 10

Budget Variance The budget variance report indicates the dollar variance between the Budget and Actual revenue or expense for a particular account. From Main Menu select Ledger -> Budgets -> Budget Variance. Your screen should look similar to this: 1) Enter the year for the report in the Fiscal Year box. 2) Enter the beginning through ending months for the report in the appropriate boxes. 3) Click Summarized if you would like to see the report summarized (as specified under account maintenance when you set up the accounts). 4) Click on the Next button. Your screen should look similar to this: 11

5) If you wish to view a budget variance using a budget other than the most recent one, choose which budget 12

you would like to use from the Select Budget To Use pull-down list. then click the Recalculate button to bring up the new variance report using the new budget. 6) Click the Back button if you need to return to your previous screen without saving the changes. 7) Click Export in the footer Quick Links section to export the report into Microsoft Excel® format. 13

Chart of Accounts New GL Account Edit GL Account Add, update (or delete) a General Ledger Account. Report Summarization and Cost Centers are also assigned on this screen. Accounts can be identified as specific for one company. 1. From the Main Menu, select Ledger -> Chart of Accounts -> Edit GL Account or Ledger -> Chart of Accounts -> New GL Account. 2. Your screen should look similar to this if EDIT: 3. To Import a list of accounts from the standard set provided, or to import your own list, click on Import Accounts button, and follow the steps outlined under Import Accounts. 4. To Add a new account, select it from the menu, or from the Edit Screen, click on the Add button. 5. To Edit a new account, select the account from the General Ledger Account drop-down list and click on the Edit button. Deleted accounts will appear at the bottom of the list. 14

Editing an Existing Account 1. Your screen should look similar to this: 2. Update any necessary data for the following categories: a. Account Description: Enter the description of the account. This will change in all past transactions if you are editing. If multiple languages are activated on your system there will be an account description field for each. b. Account Type: This is a display-only field showing the Account Type assigned to this account. c. Account Subtype: Set the subtype for your GL account to either AR or AP, and then your GL account will show up as a new 15

Receivables or Payables account when you create orders, invoices or AP bills. d. GL Cost Center: Select a Cost Center (if needed) to assign to this Account. Financial statements can be run for an individual Cost Center. See GL Cost Centers in the Related Topics section below. Note: You cannot assign a Cost Center to an intercompany account (one that can be used by all companies). e. Summarize to Account: By specifying another GL Account that this account can be summarized to, then when running financial statements using STANDARD summarizing, you can select \"Summarized\" for the report which will cause all accounts to sum into the summary account. f. Additional Summary Levels: If you have entered additional summary levels, you can select the GL Account this account should summarize into for each of these levels. g. Company: If you have multiple companies, then you will need to indicate if this account can be used by all companies, or only by a specific company. 3. To return to the previous screen WITHOUT SAVING your changes, click on the Back button. 4. To DELETE the account, click the Delete button. 16

5. To SAVE your changes, click the Save button. Your screen should look similar to this: 6. You have to option to edit another account by selecting it from the drop-down list and clicking on the Next button. 7. You can ADD a new general ledger account by clicking the Add New GL Account button. Adding a New Account 1. After clicking on the Add button on the edit screen or if you selected New GL Accounts from the menu, your screen should look similar to this: 17

2. You will see recently added accounts listed at the bottom of the screen. If you wish to import your chart of accounts now, click on the Import GL Accounts button. 3. Enter information in the following categories: a. General Ledger Account: Enter up to 20 characters to identify this General Ledger Account Number. 18

b. Account Description: Enter the description of the account. If multiple languages are activated on your system there will be an account description field for each. c. Account Type: Select the Account Type from the drop-down list. WARNING: You cannot change this field after you have saved the account! d. Account Subtype: Set the subtype for your GL account to either AR or AP, and then your GL account will show up as a new Receivables or Payables account when you create orders, invoices or AP bills. e. GL Cost Center: Select a Cost Center (if needed) to assign to this Account. Financial statements can be run for an individual Cost Center. f. Standard Summarize to Account: By specifying another GL Account that this account can be summarized to, then when running financial statements using STANDARD summarizing, you can select \"Summarized\" for the report which will cause all accounts to sum into the summary account. g. Additional Summary Levels: If you have entered additional summary levels, you can select the GL Account this account should summarize into for each of these levels. h. Specific Company: If you have multiple companies, then you will need to indicate if 19

this account can be used by all companies, or only by a specific company. 4. To return to the GL Account Edit screen WITHOUT SAVING your account, click the Edit GL Accounts button. 5. To SAVE your new account, click on the Save button. 20

Assign Summarization If you want to be able to create summarized financial reports, you can create summarization levels (in setup) and then in this area assign which accounts get summarized to what other accounts. 1. From Main menu select Ledger -> Chart of Accounts -> Assign Summarization. Your screen should look similar to this: a. Summarize To: Standard is always a summary account, but the other columns will be whatever you have created as summary levels. To select a different account to be summarized into, click on the drop-down of available accounts to pick the one you want. 21

NOTE: You must not do nested summarizing -- one account summarizing to another account that is summarized into yet another account -- it will not work right. Also make sure the accounts you are NOT summarizing are summarized to themselves so all accounts are filled in for your summary level. b. Click on any of the column headers to re-sort the report on that field. 2. Click the account number to view more detailed information about the account. This will bring up a screen that looks similar to this: 22

a. At the bottom of this screen is a bar chart to give you a visual display of the data that is shown in detail below. This is included because charts help show trends more quickly than numbers. b. If you want to see the details behind any of the numbers shown, clicking on the 23

number will bring up the Account Activity for this account for this period. 24

Journal Entries New Journal Entries Use Journal Entries only if the entries needed are not those generated automatically by Inventory, Payroll, Billing and Payables, etc. Each Journal Entry requires that the sum of Debits (positive numbers) and Credits (negative numbers) be equal in order to save the entry. 1. From Main Menu, select Ledger -> Journal Entries -> New Journal Entries. 2. Your screen should look similar to this: 3. Enter information in the following categories: a. Journal Voucher: A voucher is a transaction-processing record that documents approvals, payment amounts and physical shipment or receipt. (Hint: Use Check Number, Invoice Number, etc. as Voucher) b. Voucher Description: A full description to help you remember what the entry is for and to explain it to others. c. Transaction Date: You can either enter the date manually or click the Calendar 25

button to bring up a calendar. (Hint: If the date is for current day, there is no need to change it.) d. To continue with the Entry, click the Next button. To Back abandon the entry, click the button. 4. Your next screen should look similar to this: 5. Enter information into the following areas: a. Account: Enter a General Ledger Account or description in the first box. If you start typing something here, the program will display matching accounts. Select the account from the drop-down. For example, typing checking into this box might display something similar to this: 26

b. Amount: In the amount column, enter the amount. NOTE: Remember to enter all credit amounts as negative (with a leading \"minus\" sign) and all debit amounts as positive (do not enter the \"plus\" sign). Also, never enter the thousands separators. 6. If you need more entry lines than you see, click on the Add More Input Lines button at the bottom of the screen. 7. When your debits and credits balance, you will see a. Complete Voucher button to allow you to complete the Voucher. For help determining whether your entries should be negative or positive, it helps some people to view an account as increasing or decreasing. Here is a chart to help: Account Increase Decrease Assets Debit (+) Credit (-) Cost of Goods Sold Debit (+) Credit (-) Expenses Debit (+) Credit (-) Liabilities (ie: payables) Credit (-) Debit (+) Capital/Equity Credit (-) Debit (+) Retained Earnings Credit (-) Debit (+) Sales & Adjustments Credit (-) Debit (+) 27

Other Income Credit (-) Debit (+) Edit Journal Entries Edit entries you made via New Journal Entries as well as those automatic entries created by Receivables, Payables, Payroll, Inventory, etc. You may want to do this to correct for a wrong account being debited or credited. 1. From the Main Menu, select Ledger -> Journal Entries -> Edit Journal Entries. 2. Your screen should look similar to this: 3. Enter information in the following categories to narrow your search: 1. Voucher: Enter the voucher number (or any part of the voucher) in the Voucher box. You can leave the box empty if you are not searching for a particular voucher. 2. Description: Enter the description (or any part of the description) to find matching vouchers to edit. You can leave the box empty if you are not searching for a particular description. 28

3. Entry From: If you want to only search in one source, choose the specific source module from the Entry From pull-down list. This is the module which the original entry was made. 4. Date Range: Use the From Date and To Date boxes to enter the year, month and date range you would like to search. You can either enter the date manually or click the Calendar button to bring up a calendar. 4. To add a new journal entry, click the Add New button. 5. To display the entries matching your selections, click the Next button. 6. Your screen should look similar to this: 7. To return to the previous screen, click the Back button to take you back to the selection screen. 8. Select the Voucher you would like to edit, then click on the Edit button. 29

9. You can change the information in any of these boxes: a. Journal Voucher: A voucher is a transaction-processing record that documents approvals, payment amounts and physical shipment or receipt. (Hint: Use Check Number, Invoice Number, etc. as Voucher) b. Voucher Description: This information is to help you remember what it is for and to explain it to others. c. Transaction Date: The transaction date for the voucher will populate here. 10. To return to the previous screen WITHOUT SAVING your changes, click the Back button. 11. To DELETE the voucher, click the Delete button. 12. To save this screen and continue to the General Ledger and amounts screen, click the Next button. 13. Your screen should look similar to this: 30

14. Update the Account and Amount boxes. Here is where you can change which account(s) and the amount(s) that need to be changed. 15. To return to the main screen WITHOUT SAVING your changes, click the Back button. 16. To restore the original values if an error was made entering data, click the Rest Values button. 17. To SAVE the edited Journal Entry, click the Save button. For help determining whether your entries should be negative or positive, it helps some people to view an account as increasing or decreasing. Here is a chart to help: Account Increase Decrease Assets Debit (+) Credit (-) 31

Cost of Goods Sold Debit (+) Credit (-) Expenses Debit (+) Credit (-) Liabilities (ie: payables) Credit (-) Debit (+) Capital/Equity Credit (-) Debit (+) Retained Earnings Credit (-) Debit (+) Sales & Adjustments Credit (-) Debit (+) Other Income Credit (-) Debit (+) Close Year This screen is used to close your Fiscal Year. A special Journal Entry is made to close the balances in the Revenue and Expense Accounts to the Retained Earnings Account. Prior Year Closings will be displayed at the bottom of the screen. 1. From the Main Menu, select Ledger -> Journal Entries -> Close Year. 2. Your screen should look similar to this: 32

Unposted Journal Entries Section 3. If you have unposted Journal Entries, you will see a message indicating the number of unposted entries. 4. To review the entries, click on the Show Vouchers button. You will see the vouchers listed on the screen as shown below: 33

5. You can view the vouchers by clicking on them. You can also Hide the vouchers by clicking on the Hide Vouchers button. 6. To post the vouchers, click on the Post Now button. Close Year Section 7. Close Period: Enter the beginning and ending dates of your fiscal year. Any previous closings 34

for this same time period will automatically be canceled. 8. To complete the Year Close, click on the Next button. 9. To return to the previous screen WITHOUT closing the year, click on the Back button. Post Journals Now Use this chapter to post journal entries made in the General Ledger or created by Receivables, Payables, Inventory, etc. Posting is the process of transferring or recording amounts to a ledger. 1. From the Main Menu, select Ledger -> Journal Entries -> Post Journals Now. 2. Your screen should look similar to this: 3. Complete the information in the following categories: a. Year/Month Post Into: Enter the year and the month that you wish to post the journal entries INTO. 35

b. Begin Period/End Period: Enter the beginning and ending date range for this period. NOTE: The program will look at the Entry Date field of each Journal Entry to determine if it falls within this range. BE SURE to match your Year/Month to post with the beginning and ending date range. You can either enter the date manually or click the Calendar button to bring up a calendar. c. Post From: Select the journals you would like to Post From using the check box list on the right. 4. To Post the Journals for this period, click the Post Now button. Reverse Postings Make a posting mistake? Use this chapter to reverse the posting of journal entries that were posted previously to the specific month or on just one day. 1. From the Main Menu, select Ledger -> Journal Entries -> Reverse Postings. 2. Your screen should look similar to this: 36

Reverse Postings by a Specific Date 1. Enter the year, month and day the journal entries were posted ON in the Date To Unpost box. You can either enter the date manually or click the Calendar button to bring up a calendar. 2. To reverse the Journal Entries posted on this date, click the Reverse Post button. Reverse Postings for an Entire Month 1. You also have the option to reverse entries posted TO a SPECIFIC month. Enter the year and month you want to reverse the posting for in the Year & Month to Unpost box. 37

2. To reverse the ALL the Journal Entries posted to the entire period, click the Reverse Post button. 38

Recurring Ledger Entries New Recurring Entries Edit Recurring Entries Use Recurring Entries for sets of transactions that need to be entered into current transactions on a regular basis. Typical examples are depreciation or payroll data if done by an outside service (the payroll would need editing before each post, but it would help to remember all accounts affected). 1. From Main Menu select Ledger -> Recurring Ledger Entries -> New Recurring Entries OR Ledger -> Recurring Ledger Entries -> Edit Recurring Entries. Your screen should look similar to this if selecting EDIT: Add New button to add a new 2. Click on the entry set. 39

3. To edit an entry, you can fill in the search criteria or leave it blank to search all and click on the Next button to edit an existing entry set. ADD NEW ENTRY SET 1. After selecting the NEW option, or clicking the Add button on the first EDIT screen, your screen will look similar to this: a. Journal Voucher: A brief description of the purpose of this recurring entry. b. Description: A Complete description of the purpose of this recurring entry. 2. Click the Next button. Your screen should look similar to this: 40

a. Account: GL Account that the amount will post to. Enter the account name (or a partial name) to bring up a drop-down of possible matches. b. Amount: In the amount column, enter the amount. NOTE: Remember to enter all credit amounts as negative and all debit amounts as positive. 3. When your debits and credits balance, you will see a Complete Voucher button that will allow you to complete the voucher. If you need more entry lines than you see, click on the Add More Input Lines button at the bottom of the screen. 4. When clicking on Complete Voucher, you will see a screen like this: 41

Back button to create a. Click on the another voucher. EDIT EXISTING ENTRY SET Note that the date ranges entered on the first screen are for LAST POSTED DATES. New entries will not have any dates, so you will need to search for them based on other criteria. 1. After filling in the search criteria, click the Next button on the first screen, and your screen will look similar to this: Back button to return to search 2. Click on the criteria screen. 42

3. You will see a list of matching entry sets. Select which one you want to edit, and click on the Edit button to continue to edit. Your next screen will look similar to this: a. Edit the voucher or description if needed. b. Click on the Back button to return to search criteria screen. c. Click on the Delete button to delete this recurring entry set. 4. Click on Next button to continue to details. The details screen will look similar to this: 43

a. Edit any of the accounts or amounts that get posted. 5. When done, click Save button to save your changes. 44

Post Recurring Entries Pick which recurring entry sets to Post or Reverse post. 1. From Main Menu select Ledger -> Recurring Ledger Entries -> Post Recurring Entries. Your screen should look similar to this: a. Check the POST NOW box on any line you want to post to current journal for general ledger. b. Check the REVERSE POST box on any line you want to remove a prior posting for (it will do the OPPOSITE of what POST does). 2. Click on the Next button to perform the post or reverse post. 45