General Ledger Categories

July 23, 2019 in General Ledger

Purpose

This function is used to enter or modify the list of valid General Ledger Categories available in the system. Each GL Chart of Account must be assigned to a category. Categories are a way of organising the Chart of Accounts and are used for sorting and sub-totalling on General Ledger reports.

Some examples of categories are Fixed Assets, Current Liabilities, Sales, Expenses and Equity.

Categories can be revised, re-numbered, re-sequenced or renamed at any time after initial set-up.

Data Input

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Step 1 – GL Category Code

Category Code

Enter a new, unique GL Category Code, that does not already exist on the system. You may select an existing GL Category Code for editing.

Category codes consist of one, two or three digits arranged in a hierarchy of account types. The first digit specifies the major category of the account. The level 2 and 3 digits define the sub-categories for the account. For example, your Categories file may contain details of four types of Revenue accounts, organised as follows:

 Code Description
 8    Net Profit
 81   Gross Profit
 811  Sales Revenue
 812  Cost of Sales

Alternatively, your Categories file may group income and expenditure as different types of accounts under the major category “Profit (Loss)”, as follows:

 Code Description
 8    Profit (Loss)
 811  Profit (Loss)
 812  Expenditure

In each case, the major category of the account is specified by the first digit of the Category Code. A category beginning with “1” to “4” is recognised as a Balance Sheet category, whilst those beginning with “5” to “9” define Profit & Loss categories i.e. Trading Statement. The digits following the 1st digit in the Category Code define sub-categories or sections within the major category.

For details on the use of “codes”, see The Role of “Codes” in Online Advantage
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Step 2 – Description

Category Name

Enter the GL category name. The name is used on P&L and Balance Sheet reports.
For more details on descriptions, see The Role of “Names & Descriptions” in Online Advantage

Reporting Sign

Select the reporting sign, positive(+) or negative (-).
This defines the sign of this category for printing purposes in the User Formatted Reports.

The following signs are suggested:

Balance Sheet Accounts:
Assets              Positive
Liabilities         Negative
Equity              Negative

P&L Accounts:
Income              Positive
Expense             Negative
Print on User Formatted Reports

This option is only available for categories with 1 or 2 digit codes.

Select whether to print on the user formatted reports or not.
If Yes is selected, this category total will be printed on any User Formatted Reports.

Extra Sub Total

This option is only available for categories with 1 or 2 digit codes.

Select whether you wish to include the extra sub total or not.
If Yes is selected, a report sub-total will print on any User Formatted Reports after this category.
The figure printed will be the running total at that point.

Sub Total Description

This option is only available for categories with 1 or 2 digit codes.

If you have chosen to include an extra sub-total, then enter the description that you want to print on the User Formatted Report with the additional Sub-Total.
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