Accounting Fundamentals - GL.ppt

7/24/2019 Accounting Fundamentals - GL.ppt

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By Shailendra Garg

Accounting Fundamentals


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What is Accounts ?

Accounting is the art of recording,summarizing, reporting, andanalyzing financial transactions.


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Double Entry Accounting System

Each transaction that is enteredconsists of debits and credits.

And the total debits must equal thetotal credits


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ypes of Accounts

Accounts

Real Accounts

Personal Accounts Nominal Accounts


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!EA" A##$%&S

Accounts for the things'hich are physically(isible but are not human

being.

E)ample * Flat +angible

-en ac debited #ash ac credited


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!%"E &$*/ 0

!EA" A##$%&S

DE12 W3A #$4ES 2&

#!ED2 W3A 5$ES $%


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-E!S$&A" A##$%&S

!elated to anyperson or "egalEntity.

E)ample * Ser(ice Shail6s Ac debited

#ompany ac

credited


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!%"E &$*/ 7

-E!S$&A" A##$%&S

DE12 3E !E#E28E!

#!ED2 3E 528E!


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&$42&A" A##$%&S

Accounts 'hichare neither !ealnor -ersonal.

5enerally it6s aresult of acti(itybet'een the-ersonal 9 !ealAccounts.

E)ample *

CUSTOM

rSUPPLER

COMPAN!


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!%"E &$*/ :

&$42&A" A##$%&S

DE12 A"" E;-E&SES

#!ED2 A"" 2$4ES


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Scenarios*

1oo


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Books of Account : HCL

A) HCL has to pay a salary of $ 1000 to David.

B) HCL paid the alary !y Cash.


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What are the "edgers ?

Led"ers store posted "eneral led"er #ournals for a

set of chartfield values !y accountin" period and

fiscal year.


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#hartFields

The backbone of your general ledger is the chart of accounts,the fields and values that provide a common language foridentifying your company's business transactions.

A chart of accounts represents how a business gathers, stores,combines, and uses financial information in the course of itsoperations

A well-designed chart of accounts: upports audit and control of financial transactions. !rovides fle"ibility for management reporting and analysis. Anticipates growth and maintenance needs. #acilitates an efficient data processing flow

2n -eopleSoft 5eneral "edger, the components +fields thatma


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Account A$$%&T $lassifies the nature of atransaction. This field is re(uired.

&se it for corporate accounts.

Alternate Account A)TA$$T $lassifies the nature of a

transaction for regulatory

authorities. &se it for statutory

accounts.

%perating &nit %!*+AT&T $an be used to indicate a

location, such as a distribution

warehouse or a sales center.

/epartment /*!T/ $an be used to indicate who is

responsible for or affected by the

transaction.

!roduct !+%/&$T $aptures additional information

useful for profitability and cash

flow analysis, for e"ample.

&ame Field Definition


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!ro0ect / !+%1*$T/ $aptures additional information

useful for pro0ect accounting.

tatistics $ode TATT$$%/

*

dentifies non-monetary amounts.

tatistic codes are associated

with a specific unit of measure.

cenario $*A+% dentifies different budget

iterations that use different

assumptions.

$urrency $ode $&++*$2$/ dentifies currencies.

Affiliate A##)AT* &sed as one approach for

nter&nit 0ournal processing and

consolidated reporting. !rovides a

way to map transactions between

business units while using asingle intercompany account.

&ame Field Definition


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Account ypes


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peed Types%ften you'll have common transactions in which you enter the same combination of $hart#ield values

repeatedly. 3y creating shortcut keys called peed Types for these fre(uently used $hart#ield

combinations, you can greatly increase 0ournal entry efficiency and reduce errors

#or *"ample


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$hart#ield $ombination

*diting

$hart#ield $ombination *diting defines the following:-

4. #ombination Definitionsof two or more $hart#ields for a 3usiness &nit and)edger roup

5. #ombination Editing !ulesto determine the combinations of values that arevalid for these $hart#ields.

With #ombination Editing you create definitionsand rulesthat go(ern 'hich

#hartFields and #hartField (alue combinationsare validor invalid


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$ombo /efinition

Use the Combo Definition (combination definition) page to define the combination ofChartFields to edit.


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$ombo +uleUse the Combo Definition (combination definition) page to define the combination of ChartFields to

edit.

Use the ChartField Combination Rule 1 page to specify the SetID and name for the Combination Rule as well as to specify

the combination definition and effective dates for the rule

Selecting the Open ffective Date !o chec" bo# enables you to define the rule as having what amounts to an open$ended

date%that is& the field becomes unavailable and the rule will display the date '1('1()'**+ If you want to specify an end

date& you can clear this chec" bo# and enter a valid date in the ffective Date !o field+

!he Effective Date for Promptingdefaults to the current date, however& you can use this field to enter an effective date

for prompting detail ChartField values and -eopleSoft !rees dated on or prior to this date+ Since there is a range of dates

rather than an effective date on the page& you may want to enter ChartFields from any time period within the range+ .ereyou can specify the date from which to prompt for these ChartFields.


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Accounting calendar

Accounting calendar defines the time

periods to which you post your

transactions for different ledger group

and business unit combinations..


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Different ypes of #alendar

"etail Calendar#Controls the num$er and duration o% accounting

&eriods in a %iscal year't also identi%ies the ad(ustment &eriods %or

the calendar'Transactions are &osted to the o&en &eriod that

corres&onds to the (ournal date'

Summary Calendar# Grou&s or com$ines &eriods %rom a detail calendar

%or re&orting &ur&oses'

Business Calendar# denti%ies holidays and non )or*ing days'


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3o' to connect 1usiness#alendar 'ith a 1%?

Business Calendar is s&eci%ied in the +oliday List %ield on ,General

Ledger "e%inition- &age'

A i ti D t il # l d ith


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Associating Detail #alendar 'itha 1usiness %nit

On ,Ledgers .or A Unit- &age/ s&eci%y the Calendar " )ith each Ledger grou&

associated )ith a $usiness unit'


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%pdating $pen -eriods

On ,O&en &eriod u&date- &age/ the o&en &eriods %or a $usiness

unit and ledger grou& can $e u&dated'

% Ad(ustment !ear is not entered here/ you )ill not $e a$le to enter any ad(ustment

(ournals %or these o&en &eriods'


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Detail calendar


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1usiness #alendar

S&eci%y the

)or*ing days'

List o% +olidays


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What is ournal 5enerator?

eopleoft %eneral Led"er can receive and process

#ournals fro& other syste&s'!oth non(eopleoft syste&s

and eopleoft applications such as inancials* H+,*Distri!ution* and ,anufacturin". -hrou"h the ournal

%enerator /%%)* each of these syste&s can create

#ournal entries for postin" to your "eneral led"er


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-eople Soft

A-

A!

A4

1illing

-urchase

reasury

Accounting

Entry table

&on

-eopleSoft

Accounting

Entry table

#on(erting Accounting Entries 2n o -eople Softournals

5eneral

"edger

ournal

5enerator

Accou

ntin

"

0ntries

Accountin"

0ntries


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Accountin" ntry ta!le holds accountin" entries

2hich are picked up !y ournal %enerator forcreatin" the #ournals.

What is Accounting Entry able?What is Accounting Entry able?


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What is the Structure ofWhat is the Structure of

Accounting Entry able?Accounting Entry able?

#or the 1ournal enerator to e"tract data correctly from the Accounting *ntry

Table for 0ournal generation, the following fields are requiredon that table


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Sum %p

Source SystemSource System

Accounting

Entry table

Accounting Entry able

#ommitment #ontrol amount ype

System Source

#hart Field 4apping

4ulti 1oo< $rder

0ournal0ournal

GeneratorGenerator

Template

(Default values)

ournal 3eader defaults

ournal "ine defaults

Summarization options

0. 3o' to summarize

7. What to summarize

:. Alternate Summarization

Accounting Entries

General LedgerGeneral Ledger

ournals


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Accounting Fundamentals - GL.ppt