============================================================ LEVINSON LYON ACCOUNTING ============================================================ GENERAL LEDGER MANUAL ------------------------------------------------------------ COPYRIGHT (c) Copyright 1985 by CharterHouse Software Corporation. All rights reserved. No part of this publication may be reproduced, transmitted, transcribed, stored in a retrieval system, or translated into any language or computer language, in any form or by any means, electronic, mechanical, magnetic, optical, chemical, manual or otherwise, without the prior written consent of CharterHouse Software Corporation, 30401 Agoura Road, Agoura Hills, CA 91301-2009. DISCLAIMER CharterHouse Software Corporation makes no representations or warranties with respect to the contents hereof and specifically disclaims any implied warranties of merchantability or fitness for any particular purpose. Further, CharterHouse, Inc. reserves the right to revise this publication and to make changes from time to time in the content hereof without obligation of CharterHouse, Inc. to notify any person of such revision or changes. Please note that this manual discusses functions unique to the Levinson Lyon General Ledger application. It does NOT repeat discussions of functions covered in your Levinson Lyon Guide To Operations. Refer to your Guide To Operations if you have questions regarding: - Using the Levinson Lyon learning aids - Displaying help - Getting support - Entering data - Formatting reports - Printing, displaying, or filing reports - Setting the record pointer - Cloning records - Master menu functions SECTION 1 OVERVIEW TABLE OF CONTENTS Overview . . . . . . . . . . . . . . . . . . . . . . 1 - 1 Getting Started . . . . . . . . . . . . . . . . . . 1 - 4 Journal Processing . . . . . . . . . . . . . . . . . 1 - 8 Special Journal Processing . . . . . . . . . . . . . 1 - 11 Financial Reporting . . . . . . . . . . . . . . . . 1 - 14 Year-end Processing . . . . . . . . . . . . . . . . 1 - 17 Miscellaneous Processing . . . . . . . . . . . . . . 1 - 18 SECTION 2 GETTING STARTED TABLE OF CONTENTS Getting Started . . . . . . . . . . . . . . . . . . 2 - 1 Initializing the General Ledger Data Files . . . . . 2 - 2 Displaying the General Ledger Menu . . . . . . . . . 2 - 11 Setting Up the General Files . . . . . . . . . . . . 2 - 12 Statement Titles and Comments File . . . . . . . . . 2 - 13 Chart of Accounts File . . . . . . . . . . . . . . . 2 - 17 Levinson Lyon Account Numbers . . . . . . . . . . . . 2 - 19 Simplified Chart of Accounts Setup . . . . . . . . . 2 - 22 Chart of Accounts File Listing . . . . . . . . . . . 2 - 31 Setting Up Departments and Divisions . . . . . . . . 2 - 34 Division Name File . . . . . . . . . . . . . . . . . 2 - 39 Division Name File Listing . . . . . . . . . . . . . 2 - 42 Department Name File . . . . . . . . . . . . . . . . 2 - 44 Department Name File Listing . . . . . . . . . . . . 2 - 47 Quick Department Add . . . . . . . . . . . . . . . . 2 - 49 Setting Up Supporting Schedules . . . . . . . . . . . 2 - 52 Schedule File . . . . . . . . . . . . . . . . . . . . 2 - 55 Schedule File Listing . . . . . . . . . . . . . . . . 2 - 60 Setting Up Summary Statements . . . . . . . . . . . . 2 - 62 Chart of Accounts File Maintenance . . . . . . . . . 2 - 65 Account Types . . . . . . . . . . . . . . . . . . . . 2 - 67 Account Type Variables . . . . . . . . . . . . . . . 2 - 81 Maintenance . . . . . . . . . . . . . . . . . . . . . 2 - 86 Account Balances File . . . . . . . . . . . . . . . . 2 - 93 Account Balances Listing . . . . . . . . . . . . . . 2 - 99 Budget File . . . . . . . . . . . . . . . . . . . . . 2 - 101 Budget File Listing . . . . . . . . . . . . . . . . . 2 - 105 Journal Name File . . . . . . . . . . . . . . . . . . 2 - 107 Journal Name File Listing . . . . . . . . . . . . . . 2 - 110 Gross Profit Inventory Adjustment File . . . . . . . 2 - 112 Tax Accrual Adjustment File . . . . . . . . . . . . . 2 - 116 System Control File . . . . . . . . . . . . . . . . . 2 - 121 SECTION 3 JOURNAL PROCESSING TABLE OF CONTENTS Journal Processing . . . . . . . . . . . . . . . . . 3 - 1 Maintaining the General Files . . . . . . . . . . . . 3 - 5 Entering Journal Transactions . . . . . . . . . . . . 3 - 6 Defining the Processing Period and Journal . . . . . 3 - 7 Entering Transactions . . . . . . . . . . . . . . . . 3 - 12 Entry Options . . . . . . . . . . . . . . . . . . . . 3 - 20 Journal Transaction Report . . . . . . . . . . . . . 3 - 23 Journal Transaction Correction . . . . . . . . . . . 3 - 26 Account Balances Update . . . . . . . . . . . . . . . 3 - 33 SECTION 4 SPECIAL JOURNAL PROCESSING TABLE OF CONTENTS Special Journal Processing . . . . . . . . . . . . . 4 - 1 Recurring and Reversing Journals . . . . . . . . . . 4 - 2 Journal Transaction Interface . . . . . . . . . . . . 4 - 5 Gross Profit Inventory Adjustment . . . . . . . . . . 4 - 8 Tax Accrual Adjustment . . . . . . . . . . . . . . . 4 - 12 SECTION 5 FINANCIAL REPORTING TABLE OF CONTENTS Financial Reporting . . . . . . . . . . . . . . . . . 5 - 1 Working Trial Balance . . . . . . . . . . . . . . . . 5 - 2 General Ledger Report . . . . . . . . . . . . . . . . 5 - 6 Balance Sheet . . . . . . . . . . . . . . . . . . . . 5 - 10 Income Statement . . . . . . . . . . . . . . . . . . 5 - 16 Income Statement - Columnar . . . . . . . . . . . . . 5 - 24 Statement of Changes . . . . . . . . . . . . . . . . 5 - 30 Statement of Funds Flow . . . . . . . . . . . . . . . 5 - 34 SECTION 6 YEARLY PROCESSING TABLE OF CONTENTS Yearly Processing . . . . . . . . . . . . . . . . . . 6 - 1 SECTION 7 MISCELLANEOUS PROCESSING TABLE OF CONTENTS Miscellaneous Processing . . . . . . . . . . . . . . 7 - 1 Journal Transaction File Maintenance . . . . . . . . 7 - 2 Journal Transaction File Listing . . . . . . . . . . 7 - 6 Reconstructing Account Balances . . . . . . . . . . . 7 - 8 Cloning A Chart of Accounts . . . . . . . . . . . . . 7 - 10 Combining General Ledgers . . . . . . . . . . . . . . 7 - 12 APPENDIX A TABLE OF CONTENTS Changing Period Numbers . . . . . . . . . . . . . . . A - 1 GENERAL LEDGER TABLE OF CONTENTS Overview . . . . . . . . . . . . . . . . . . . . . . . . 1 Getting Started Procedure . . . . . . . . . . . . . . . . 2 Journal Processing . . . . . . . . . . . . . . . . . . . 3 Special Journal Processing . . . . . . . . . . . . . . . 4 Financial Reporting . . . . . . . . . . . . . . . . . . . 5 Year-end Processing . . . . . . . . . . . . . . . . . . . 6 Miscellaneous Processing . . . . . . . . . . . . . . . . 7 Changing Period Numbers . . . . . . . . . . . . . . . . . A ================================================================= OVERVIEW ================================================================= Levinson Lyon General Ledger is one of the family of Levinson Lyon accounting applications. It has optional links to the Levinson Lyon Accounts Receivable, Billing and Inventory Control, Accounts Payable, Fixed Assets, and/or Payroll applications for those users who have, or wish to add, any or all of those applications. With the Levinson Lyon General Ledger application, you may: - Define your own Chart of Accounts from scratch or use a "simplified setup" to establish a core Chart of Accounts for a sole proprietorship, partnership, or corporation. You may then modify the core Chart of Accounts to suit your needs. - Design your own financial statement formats including totals, titles, headings and footings - Make an unlimited number of journal entries per session (10 per screen with multiple screens) and edit those entries both before and after the session is posted - Define up to 89 transaction journals (e.g. Cash Receipts, Cash Disbursements, etc.) - Make journal entries for up to 26 open periods, 13 in the current year and 13 in the next year - Display your posting account numbers and descriptions during journal entry - Verify your journal entries by comparing them with the debit/credit and hash totals maintained by Levinson Lyon during each journal entry session (a debit/credit difference is also displayed) - Optionally verify that the account numbers you enter represent posting accounts in your Chart of Accounts 1 - 1 - Optionally add accounts to your Chart of Accounts after journal entries for those accounts have been posted - Enter decimal points during journal entry, or have Levinson Lyon enter decimals - Generate automatic inventory adjustment entries based on a percentage of gross profit - Generate automatic state and federal tax accrual entries based on your estimated tax rates - Enter automatic recurring journal entries - Enter automatic reversing journal entries - Add departments and/or divisions for ranges of primary accounts using 4-digit sub-account numbers - Perform an "interim year-end close" and continue processing while awaiting audit adjustments - Print financial statements for any period in the current or next years at any time, including: Balance Sheets Income Statements Statement of Changes Statement of Funds Flow - Print "comparative" financial statements against the same period in the prior year or against budget amounts with an option for a year-to-date comparison - Design and print financial statement "schedules" and/or summary statements to extract data for separate reporting - Print Income Statements for companies, departments, and divisions in standard or columnar format - Print Journal Transaction Reports for all journals or a range of journals for any of the 26 open periods 1 - 2 - Print General Ledger Reports for all periods or a range of periods for either open year - Edit the contents of all files - Clone a Chart of Accounts for use with another company - Combine multiple companies' General Ledgers into one - Change period numbers as in a change of fiscal yearend. Levinson Lyon General Ledger reports and file listings provide complete "audit trails" for all transactions. All reports and file listings may be printed, displayed, or stored in standard text files. ================================================================= 1 - 3 ================================================================= GETTING STARTED (Overview) ================================================================= During the getting started procedure, you will: 1. Initialize your data files, and 2. Set up the Levinson Lyon general files Levinson Lyon reduces General Ledger data entry to a minimum by storing information which is used repeatedly in general files and extracting pertinent General Ledger data from other Levinson Lyon systems (e.g. A/R, Billing and Inventory Control, A/P, Fixed Assets, Payroll, etc.). The transaction data you routinely enter is then combined with information retrieved from the general files to produce: - Journal Transaction Reports - General Ledger Reports - Financial Statements - File Listings The General Ledger general files include the: - Statement Comments and Titles File - Chart of Accounts File - Journal Transaction File - Account Balances File - Budget File - Schedule File - Division Name File - Department Name File - Journal Name File - System Control File Levinson Lyon also uses some of the general files to accumulate transaction data. The period totals for each open period and for each period of the Prior Year, for example, are calculated and maintained in the Account Balances File. 1 - 4 STATEMENT COMMENTS AND TITLES FILE The Statement Comments and Titles File maintains the titles and top and bottom comments which will be printed on your: - Balance Sheets - Income Statements - Statement of Changes - Statement of Funds Flow CHART OF ACCOUNTS FILE The Chart of Accounts File maintains the account numbers, their descriptions, and the formatting instructions used to produce financial statements. JOURNAL TRANSACTION FILE The Journal Transaction File maintains the journal entry detail for all periods in each of the two open processing years. Included for each entry are the account number, description, date, reference, amount, etc. ACCOUNT BALANCES FILE The Account Balances File maintains the account balances for the posting accounts in your Chart of Accounts. The balances in the Account Balances File are maintained by Levinson Lyon and are solely dependent on the transactions in the Transaction File. BUDGET FILE The Budget File maintains budget amounts for each General Ledger account for each period of the current processing year. Each time you print financial statements, you may include a budget comparison of actual values to the budget amounts maintained in the Budget File. 1 - 5 SCHEDULE FILE The Schedule File maintains the parameters necessary to define any financial schedules you would like to print with your financial statements. Each record in the Schedule File includes the schedule title, range of accounts to be included, which statement it is associated with, etc. DIVISION NAME FILE The Division Name File maintains division numbers and names for printing divisional Income Statements. DEPARTMENT NAME FILE The Department Name File maintains departmental numbers and names for printing departmental Income Statements. JOURNAL NAME FILE The Levinson Lyon General Ledger System provides 99 journals for journal entries. The Journal Name File maintains the name of each journal you define. (Journals 90-99 are reserved for Levinson Lyon special functions, e.g. recurring entries) GROSS PROFIT INVENTORY ADJUSTMENT FILE The Gross Profit Inventory Adjustment File maintains the parameters needed to estimate your ending inventory based on the assumption that your gross profit is a constant percentage of your net sales. 1 - 6 TAX ACCRUAL ADJUSTMENT FILE The Tax Accrual Adjustment File maintains the parameters needed to estimate your federal and state income taxes based on a percentage of your pre-tax profit. SYSTEM CONTROL FILE The System Control File maintains information and parameters for various General Ledger functions, e.g. the account you may optionally use for rounding errors, period end dates, etc. ================================================================= 1 - 7 ================================================================= JOURNAL PROCESSING (Overview) ================================================================= Journal processing procedures include: - Maintaining the general files - Making Journal Transaction Entries - Printing Journal Transaction Reports - Making Journal Transaction Corrections - Updating the Account Balances File MAINTAINING THE GENERAL FILES You will set up the general files during the getting started procedure, but you must also maintain the general files with current information. If you post to a new account, for example, you must add that account to your Chart of Accounts. ENTERING JOURNAL TRANSACTIONS Most of your journal entries will be made via the Journal Transaction Entry function. To facilitate multiple transaction entering and editing, Levinson Lyon stores your journal entries in a temporary file until you post those entries to the Journal Transaction File. Each time you post journal entries, Levinson Lyon will "attempt" to update your account balances with your entries. If you have posted to an invalid account, an Error Analysis Report will be printed. You must then make corrections, or add supporting accounts to your Chart of Accounts, and update your account balances by selecting the Account Balances Update function from the menu. You may ensure that you are always posting to valid accounts by verifying accounts during journal entry (an option maintained in the System Control File). 1 - 8 Each time you begin a journal entry session, you will designate the posting year, period, and journal. You may post to any one of 26 open periods, 13 in the current year and 13 in the next year. Conceptually, you will always be posting to the current year, but you may continue processing into the next year while you are waiting for other current year activity (such as audit adjustments) to become available. JOURNAL TRANSACTION REPORT The Journal Transaction Report lists the contents of the Journal Transaction File for a specified period. It is printed in journal number order with subtotals for each journal. JOURNAL TRANSACTION CORRECTION Journal Transaction Correction is a "limited" access Transaction File editing function, i.e. like the journal entry function, it may be selected by those persons who are processing with a full or limited access password. Changes that would force a period out-of-balance cannot be made via the Journal Transaction Correction function. 1 - 9 ACCOUNT BALANCES UPDATE The Account Balances Update function is a two part function: 1. It confirms the validity of the transactions in the Transaction File and lists any inconsistencies in an Error Analysis Report, and 2. If no errors are found, updates the balances in the Account Balances File with the amounts of those transactions. Normally, balances are updated with your journal entries after those entries are posted to the Journal Transaction File. However, if Levinson Lyon encounters an invalid account during the update procedure, the Error Analysis Report from the Account Balances Update function will be printed. You must then make the necessary adjustments and select the Account Balances Update function from the menu until no errors are detected and the update is completed. ================================================================= 1 - 10 ================================================================= SPECIAL JOURNAL PROCESSING (Overview) ================================================================= Special Journal Processing procedures include: - Recurring and Reversing Journals - Journal Transaction Interface - Gross profit Inventory Adjustments - Tax Accrual Adjustments Each function is optional. Each function also takes the place of making journal entries via the Journal Transaction Entry procedure. Each time you select one of the Special Journal Processing functions, Levinson Lyon will create journal entries, just as if you had entered them via the journal Transaction Entry procedure, but those entries will be derived from: - Prior entries, e.g. recurring or reversing entries - Calculations, e.g. estimating ending inventory based on gross profit as a percentage of net sales Note that Special Journal Processing functions are typically performed after all other entries for a processing period have been made. RECURRING and REVERSING JOURNALS Levinson Lyon reserves journal number 92 for recurring journal entries. Each time you select the Recurring and Reversing Journal function, Levinson Lyon makes a current period entry for any journal 92 entries in the previous period. Levinson Lyon reserves journals 90 and 91 for reversing entries. Each time you select the Recurring and Reversing Journal function, Levinson Lyon takes any journal 90 entries from the previous period, reverses those entries and enters them in journal 91 for the current period. 1 - 11 JOURNAL TRANSACTION INTERFACE The Journal Transaction Interface function reads and posts the General Ledger transfer files from: - Accounts Receivable, Billing, and Inventory Control - Accounts Payable - Payroll - Fixed Assets - Job Costing Each time you perform the Journal Transaction Interface function, you may: 1. Post data from any or all of the applications, and 2. Designate the journal to be used for each application GROSS PROFIT INVENTORY ADJUSTMENT The Gross Profit Inventory Adjustment function calculates your ending inventory, based on the assumption that your gross profit is a percentage of your net sales, and makes a resulting journal entry for your Balance Sheet inventory account and your Income Statement inventory change account. The calculation and entries are based on the parameters maintained in the Gross Profit Inventory Adjustment File. 1 - 12 TAX ACCRUAL ADJUSTMENT The Tax Accrual Adjustment function estimates your federal and state income taxes based on a percentage of your year-to-date net income. Each time you select the function, Levinson Lyon makes the journal entries necessary to: 1. Adjust your Balance Sheet federal and state tax accrual accounts for the calculated amounts, and 2. Reflect the adjustment amounts in the current period's Income Statement. The calculation and entries are based on the parameters maintained in the Tax Accrual Adjustment File. ================================================================= 1 - 13 ================================================================= FINANCIAL REPORTING (Overview) ================================================================= Levinson Lyon will prepare financial reports for any period in the current or next year, including: - Working Trial Balance - General Ledger Report - Balance Sheet - Income Statement - Statement of Changes - Statement of Funds Flow Although financial reports are typically printed at the end of each processing period, Levinson Lyon financial reports may be printed at any time, providing that an Account Balances Update error condition does not exist. WORKING TRIAL BALANCE The Working Trial Balance is a 132 column report that lists the balances in your posting accounts in a work sheet format, providing debit and credit columns for: - Account balances - Adjustments - Adjusted balances GENERAL LEDGER REPORT The General Ledger Report is an 80 column report that lists the entries that have been made for all accounts or a range of accounts. The report is printed in account number order and may be printed in detailed or summary form. 1 - 14 BALANCE SHEET Balance Sheets are formatted from the Balance Sheet accounts in your Chart of Accounts, using the balances from the Account Balances File. You may print a Balance Sheet for any period in the current or next processing years, with options to include a budget or prior year comparison. INCOME STATEMENT Income Statements are formatted by the Income Statement Accounts in your Chart of Accounts, using the balances from the Account Balances File. You may print an Income Statement for any period in the current or next years, with options to include a budget, prior year, or an account percentage comparison. There are three levels of Income Statements: 1. Combined (company) 2. Divisional 3. Departmental INCOME STATEMENT - COLUMNAR You may also print an Income Statement in columnar format if you have a wide carriage printer. The columnar format includes all of your accounting periods (12 or 13) side-by-side with a line total. STATEMENT OF CHANGES The Statement of Changes is an analysis of the sources and uses of working capital. It is a preformatted 80 column report based on the balances in your Balance Sheet accounts. 1 - 15 STATEMENT OF FUNDS FLOW The Statement of Funds Flow is similar to the Statement of Changes. It provides an analysis of the sources and uses of cash in an 80 column preformatted report based on the balances in your Balance Sheet accounts. ================================================================= 1 - 16 ================================================================= YEAR-END PROCESSING (Overview) ================================================================= The Year-End Processing function may be performed on: 1. An interim basis, or 2. A final basis During an interim closing, Levinson Lyon will make all year- end closing entries (closing revenue/expenses to retained earnings, partnership distributions, draw accounts, etc.) for the current year and post them to the next year. You may perform as many interim closings as is necessary to obtain the desired results. In addition, during a final closing, Levinson Lyon will: - Delete all current year transactions from the Journal Transaction File - Enter all next year transactions as current year transactions - Shift current year balances to the prior year and any next year balances to the current year ================================================================= 1 - 17 ================================================================= MISCELLANEOUS PROCESSING (Overview) ================================================================= Miscellaneous Processing functions include: - Journal Transaction File Maintenance - Journal Transaction File Listing - Reconstructing Account Balances - Cloning a Chart of Accounts - Combining General Ledgers These are functions which are not a part of normal processing, but which you may nevertheless need to perform. JOURNAL TRANSACTION FILE MAINTENANCE Journal Transaction File Maintenance is a "full" access Journal Transaction File editing function, i.e. it may only be selected by those persons processing with a full access password. It is a restricted function because it allows you to change anything and everything in the Journal Transaction File. However, Levinson Lyon still maintains the integrity of your account balances by performing the Account Balances Update function if you make any changes to the file, printing an Error Analysis Report, etc. Note that the recommended procedure for making adjustments for your journal entries is to make adjusting journal entries via the Journal Transaction Entry procedure. The adjusting journal entry method provides a complete audit trail of events. JOURNAL TRANSACTION FILE LISTING The Journal Transaction File Listing is an 80 column report that lists the contents of the Journal Transaction File for all transactions or a range of transactions. It is printed in transaction number order and serves as a reference during Journal Transaction File Maintenance. 1 - 18 RECONSTRUCTING ACCOUNT BALANCES The Reconstruct Account Balances function performs an Account Balances Update from the first period in the current processing year. (An Account Balances Update is normally performed from the last period you processed.) When and why you might need to perform this function is not predictable. But whatever the reason, if your account balances do not reflect the transactions in the Journal Transaction File, the answer is to reconstruct account balances. CLONING A CHART OF ACCOUNTS The Chart of Accounts Cloning function is designed for those users who are processing for more than one company, and the companies they are processing use the same or very similar Charts of Accounts. The cloning function copies the Chart of Accounts from a designated company into the Chart of Accounts File for the company being processed. COMBINING GENERAL LEDGERS The Combining General Ledgers function allows the consolidation of multiple companies' general ledgers into one. ================================================================= 1 - 19 ================================================================= GETTING STARTED ================================================================= GETTING STARTED guides you through the procedure for setting up your General Ledger files in preparation for beginning your daily routine of entering journal transaction entries, and printing financial statements and reports. PROCEDURE The procedure outlined here assumes that you have completed the Levinson Lyon Guide To Operations, and that specifically, you: - Have installed the Levinson Lyon Master Menu and the General Ledger application - Have defined your computer configuration in the Computer Definition File - Have established a record in the Company File for the company(s) you will be processing - Have selected a company for processing - Are familiar with the file maintenance and data entry procedures......e.g. entering dates and dollar amounts, formatting reports, etc. During the getting started procedure, you will: 1. Initialize the General Ledger data files. 2. Display the General Ledger menu. 3. Set up the General Ledger general files and print their contents. ================================================================= 2 - 1 ================================================================= INITIALIZING THE GENERAL LEDGER DATA FILES ================================================================= Initializing data files prepares your data disk or diskette to receive data. (Levinson Lyon expects to find your data on the disk or diskette in the drive designated for General Ledger in the Company File.) During the file initialization procedure, you will be asked to answer a number of questions regarding the scope of your operations........e.g. How many Balance Sheet accounts do you have? Levinson Lyon will use the information you provide to initialize your data files. (Although Levinson Lyon files will expand automatically within the storage limitation of your data disk or diskette, initializing files which conform to the scope of your operations will maximize operating efficiency.) Answers to the questions should be based on your current needs with allowances for any immediate expansion. In any case, do not labor over your answers. As long as you do not waste disk space by entering numbers which grossly exceed your needs, a rough estimate is all that is required. SELECTION o Display the Master Menu and Select - Initialize Data Files Enter 5 - General Ledger 2 - 2 ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** PASSWORD ENTRY *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ *** ENTER PASSWORD FOR *** ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ ³ ³ ³ ³ ³ ³ ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ ÉÍÍÍÍÍ» or º Esc º to return to the MENU ÈÍÍÍÍͼ GENERAL LEDGER The General Ledger is shipped with: - "GL" installed as the password for LIMITED access, and - "GLF" installed as the password for FULL access. (See the Levinson Lyon Guide To Operations for the procedure for changing passwords.) o Enter "GLF" or the password you have assigned for FULL access to General Ledger 2 - 3 Note that as an added security precaution, password characters are displayed as graphic block characters as they are entered. When the password is entered correctly, the file initialization questions will be displayed. ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** INITIALIZE DATA FILES *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ ³ ³ 1 - Initialize new company ³ ³ 2 - Initialize with override ³ ³ 3 - Initialize selected files ³ ³ 4 - Return to menu ³ ³ ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º Enter Selection: .. º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ 1 - Initialize new company o If you are initializing General Ledger files for the first time, enter "1" to continue. Levinson Lyon will display the initialization questions. 2 - 4 2 - Initialize with override Initializing with override allows you to change the number of records Levinson Lyon calculates for each file. The override feature should generally not be used except in extraordinary circumstances and preferably only on instructions from a member of the Levinson Lyon support staff. 3 - Initialize selected files Initializing selected files allows you to specify which files will be initialized (reinitialized). Selected files should only be initialized on instructions from a member of the Levinson Lyon support staff. 2 - 5 ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º INITIALIZE GENERAL LEDGER FILES º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ ³ ³ 1. How many divisions do you have? ..... ³ ³ 2. How many departments do you have? ..... ³ ³ 3. How many Balance Sheet accounts do you have? ..... ³ ³ 4. How many Income Statement accounts do you have? ..... ³ ³ 5. How many accounts will you be entering budgets for? ..... ³ ³ 6. How many journal entries will you be making each period? ..... ³ ³ ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ F1 -When Ready F2 -Clear Esc -Return to Menu 1 - How many division do you have? Each division you will be printing an Income Statement for requires one record in the Division Name File. The number you enter will determine the amount of disk space that will be reserved for the Division Name File. o Enter the maximum number of division names you have, or expect to have in the immediate future. 2 - 6 2 - How many departments do you have? Each department you will be printing an Income Statement for requires a record in the Department Name File. The number you enter will determine the amount of disk space will be reserved for the Department Name File. o Enter the maximum number of department names you have, or expect to have in the immediate future. 3 - How many Balance Sheet accounts do you have? 4 - How many Income Statement accounts do you have? Each Balance Sheet and Income Statement account requires a record in the Chart of Accounts File and the Account Balances File. The number you enter will determine the amount of disk space that will be reserved for those files. Your Income Statement entry will be automatically expanded to accommodate divisions and departments. o Enter the number accounts you have in your Balance Sheet and Income Statements. 2 - 7 5 - How many accounts will you be entering budgets for? Each budgeted account you have requires a record in the Budget File. The number you enter will determine how much disk space is reserved for the Budget File. Your entry will be automatically expanded to accommodate divisions and departments. o Enter the number of General Ledger accounts you will be entering budgets for. 6 - How many Journal Transaction Entries will you be making each period? Each journal transaction entry requires a record in the Journal Transaction File. The number you enter will help determine how much file space will be reserved for the Journal Transaction File. Your entry will be automatically expanded to accommodate next-year processing. That is, extra space will be allocated to accommodate the extra periods required to continue processing while the current year is left open in anticipation of year-end closing adjustments. o Enter the number of Journal Transaction entries you expect to make each period. 2 - 8 When Ready o When the form is complete, press to continue. Levinson Lyon will calculate and display the storage space required for your operations. The "space to be taken by new files", both bytes and percentage, represents the space required for files with a predictable size. However, Levinson Lyon also uses a number of work files which vary in length and may or may not be present at any given time. Initializing files for more than 80% of storage capacity is therefore not recommended. ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** INITIALIZE DATA FILES *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ ³ ³ ³ ³ Total disk space: bytes 100 % ³ ³ ³ ³ Currently used disk space: bytes % ³ ³ ³ ³ Space to be taken by new files: bytes % ³ ³ ³ ³ Total after initialization: bytes % ³ ³ ³ ³ ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ ÉÍÍÍÍÍ» º ÄÙ º to INITIALIZE files ÈÍÍÍÍͼ ÉÍÍÍÍÍ» or º Esc º to return to OPTIONS ÈÍÍÍÍͼ 2 - 9 INITIALIZE files o If the total initialization percentage is less than 80%, you may press to continue with the initialization process. Levinson Lyon will: 1. Initialize the General Ledger files, and 2. Return to the menu. ================================================================= 2 - 10 ================================================================= DISPLAYING THE GENERAL LEDGER MENU ================================================================= If you have initialized the General Ledger files, then you are ready to display the General Ledger menu. SELECTION o Select - Accounting Applications Enter 5 - General Ledger PASSWORD o When you are prompted to do so, enter "GLF" or the password you have assigned to General Ledger for Full Access. ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** GENERAL LEDGER SYSTEM MENU *** v2.12 º º º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ *** PROCESS SELECTION *** ³ ³ *** JOURNAL PROCESSING *** ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ - Journal Processing ³ ³ 1 - Journal Transaction Entry ³ ³ - Special Journal Processing ³ ³ 2 - Journal Transaction Report ³ ³ - Financial Reporting ³ ³ 3 - Journal Transaction Correction ³ ³ - Year-End Processing ³ ³ 4 - Account Balances Update ³ ³ - File Maintenance ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ ³ - File Listing ³ ³ - AutoPilot ³ ³ - Utilities ³ ³ - to Return to Master Menu ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º PLEASE ENTER YOUR SELECTION .. º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ 2 - 11 ================================================================= SETTING UP THE GENERAL FILES ================================================================= The general files maintain information which is used repeatedly for General Ledger functions............e.g. Budget File, Department Name File, etc. The Levinson Lyon General Ledger combines information from the general files, along with the journal transactions you routinely enter, to produce financial statements and reports. With the exceptions of the Chart of Accounts File and the General Ledger System Control File, the general files are optional. Each optional file, however, supports an optional General Ledger function which cannot be performed unless the file that supports that option has been set up. PROCEDURE Set up the following files and print their related listings. 1. Statement and Titles Comments File 2. Chart of Accounts File 3. Division Name File (optional) 4. Department Name File (optional) 5. Schedule File (optional) 6. Account Balances File (optional) 7. Budget File (optional) 8. Gross Profit Inventory Adjustment File (optional) 9. Tax Accrual Adjustment File (optional) 10. Journal Name File (optional) 11. System Control File ================================================================= 2 - 12 ================================================================= STATEMENT TITLES AND COMMENTS FILE ================================================================= The Statement Titles and Comments File is a single record file that maintains optional information which may be printed at the top and/or bottom of each page of your: - Balance Sheet - Income Statement - Statement of Changes - Statement of Funds Flow SELECTION o Select - File Maintenance Enter 7 - Statement Titles and Comments ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** STATEMENT TITLES AND COMMENTS *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ Top .................................................. ³ ³ Comment: .................................................. ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Balance Sheet ³ ³ Title: .................................................. ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Income Statement ³ ³ Title: .................................................. ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Statement of Changes ³ ³ Title: ................................................. ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Statement of Funds Flow ³ ³ Title: .................................................. ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Bottom .................................................. ³ ³ Comment: .................................................. ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ F1 -Write Data to Disk F2 -Clear Esc -Return to Menu 2 - 13 Top Comment: The contents of the two top comment lines will be centered and printed on lines 6 and 7 of each page of your: - Balance Sheet - Income Statement - Statement of Changes - Statement of Funds Flow o Enter any comment you would like included on lines 6 and 7 of each page of your: - Balance Sheet - Income Statement - Statement of Changes Balance Sheet Title: The contents of the balance sheet title line will be printed on line one of each page of your balance sheet. o Enter any title or comment you would like printed on line one of each page of your balance sheet. Income Statement Title: The contents of the income statement title line will be printed on line one of each page of your income statement. o Enter any title or comment you would like printed on line one of each page of your income statement. 2 - 14 Statement of Changes Title: The contents of the Statement of Changes title line will be printed on line one of your Statement of Changes. o Enter any title or comment you would like printed on line one of each page of your statement of changes. Statement of Funds Flow: The contents of the Statement of Funds Flow title line will be printed on line one of your Statement of Funds Flow. o Enter any title or comment you would like printed on line one of each page of your statement of changes. 2 - 15 Bottom Comment: The contents of the two bottom comment lines will be centered and printed on the last two lines of of each page of your: - Balance Sheet - Income Statement - Statement of Changes - Statement of Funds Flow o Enter any comment you would like included on the last two lines of each page of your: - Balance Sheet - Income Statement - Statement of Changes ================================================================= 2 - 16 ================================================================= CHART OF ACCOUNTS FILE ================================================================= The Chart of Accounts File is a multiple record file that maintains a record for each account in your Chart of Accounts. (We generally refer to the Chart of Accounts File as "your Chart of Accounts".) Your Chart of Accounts will determine: - Which accounts you may use as posting accounts - What your financial statements will look like - Which accounts will be included in totals - Which accounts will be closed to other accounts each time you perform an interim or year-end closing - Etc. Each record in your Chart of Accounts maintains an: - Account number - Account description - Account type In addition, depending on the account type, each record may include other information required for printing, calculating, or year-end closings. Setting up your Chart of Accounts is by far the most crucial step in setting up your Levinson Lyon General Ledger. In addition to the typical Levinson Lyon file maintenance procedure, which you may use to control all of the variables in your Chart of Accounts, you may begin setting up your Chart of Accounts by using a simplified procedure to generate a core of accounts and establish a record for each of those accounts in your Chart of Accounts. When the simplified procedure is complete, you may: 1. Print a Chart of Accounts Listing, and 2. Examine the resulting statements by printing a Balance Sheet and Income Statement with zero balances. 2 - 17 You may then use the Chart of Accounts File Maintenance function to: - Expand your Chart of Accounts beyond the core accounts - Add divisional and departmental accounts - Design summary statements to be printed with your Balance Sheet and/or Income Statements - Perform routine maintenance, e.g. adding additional posting accounts as you need them Of course you may bypass the simplified setup procedure and use the Chart of Accounts File Maintenance function to set up a Chart of Accounts from scratch, but we would like to suggest that you not do that unless you have performed the simplified setup and examined the Chart of Accounts which is generated by that procedure. Once you have a Chart of Accounts, if you need another one which is the same as or similar to one you have, you may use the Chart of Accounts Cloning function discussed in Section 7. In any case, before you begin setting up your Chart of Accounts, you need to know a few things about Levinson Lyon account numbers. ================================================================= 2 - 18 ================================================================= Levinson Lyon ACCOUNT NUMBERS ================================================================= The backbone of the Levinson Lyon General Ledger system is the account number. Levinson Lyon uses eight digit account numbers. The first four digits identify primary accounts and the second four digits identify sub-accounts. Primary and sub-account designations are separated by a hyphen (-), but all 8 digits are required to identify an account. EXAMPLE 6010-1001 6010-1002 The example above shows two account numbers. The accounts are different because they have different sub-account numbers, but both accounts belong to the same "primary" account (6010). Each time you print a Balance Sheet and/or Income Statement: 1. The balances for your accounts will be printed in account number order, and 2. Amounts posted to sub-accounts are combined and reported as one amount for each primary account. In addition, amounts posted to Income Statement sub-accounts may be reported with Divisional and/or Departmental Income Statements. Divisional Income Statements provide a second-level breakdown of income and expenses, which allows for separate reporting of sub-entities, e.g. regional breakdowns, product line breakdowns, etc. Departmental Income Statements provide a third-level breakdown of income and expenses, which allows for separate reporting of sub-entities one level below the divisional level. This can include breakdowns by cost center, manager, location, job, etc. 2 - 19 SCENARIO 1 "Company 1" uses only primary account numbers. Two of their revenue accounts are: 6000 - 0000 Sales - LA 6100 - 0000 Sales - NY When financial statements are prepared, "Company 1" may print an Income Statement for the company only. SCENARIO 2 "Company 2" reports revenue by divisions. Revenue in Los Angeles is distributed to: 6000 - 0100 Sales - LA, Division 01 6000 - 0200 Sales - LA, Division 02 When financial statements are prepared, "Company 2" may print Income Statements by divisions and for the company. SCENARIO 3 "Company 3" reports revenue by departments and divisions. Revenue in Los Angeles is distributed to: 6000 - 0101 Sales - LA, Division 01, Department 0101 6000 - 0102 Sales - LA, Division 01, Department 0102 6000 - 0201 Sales - LA, Division 02, Department 0201 6000 - 0202 Sales - LA, Division 02, Department 0202 When financial statements are prepared, "Company 3" may print Income Statements by departments, divisions, and for the company. 2 - 20 Theoretically, you may have: 9,999 Company (primary) Accounts 99 Divisions below each primary account 99 Departments below each division account (9,999 Departments without divisions) The practical limits depend on your computer's storage capacity. In addition to departmental and divisional Income Statements, you may define schedules which will report a range of accounts from your Chart of Accounts and which may optionally include sub-account detail. So even if you are not posting by departments and divisions, you may still want to use sub-accounts to simplify the appearance of your Balance Sheet and/or Income Statement and use supporting schedules to show the detail. We will discuss setting up sub-accounts for divisional, departmental, and schedule reporting later. The first thing you need to do, regardless of whether or not you will be using sub-accounts, is determine what your company (combined) financial statements will look like, and that's the task the simplified setup procedure can help you with the most. ================================================================= 2 - 21 ================================================================= SIMPLIFIED CHART OF ACCOUNTS SETUP ================================================================= The simplified Chart of Accounts setup allows you to create a formatted Chart of Accounts for a: 1. Corporation, 2. Sole proprietorship, or 3. Partnership. The simplified procedure displays an entire, preformatted, Chart of Accounts in groups of 13 accounts at a time. During the simplified setup procedure you may: - Change account numbers and descriptions - Delete accounts - Add a limited number of accounts Although you may enter both primary and sub-account numbers during the simplified setup, doing so is not recommended. The simplified setup was designed primarily for establishing a core of primary (company) accounts. Once the procedure is started, it must be completed, and you cannot go backwards, i.e. you cannot display previous groups of accounts. During the procedure you may also display a simulated section from the financial statement that would result from generating the core Chart of Accounts. It is, however, only a simulation, and it will not reflect any changes you might make during the procedure. To see the effects of any changes you make you will need to print zero balance financial statements when the procedure is complete. 2 - 22 As previously discussed, each account in your Chart of Accounts also has an account type. Depending on the account type, a Chart of Accounts record may include other variables, e.g. which column to use for printing. During the simplified procedure the account type and its other variables will be displayed, but you will not be permitted to change them. (We explain account types and their related variables when we discuss Chart of Accounts File Maintenance, but if you can live with the Chart of Accounts which is generated by the simplified setup procedure, you can skip Chart of Accounts File Maintenance and forget about account types and all of their related variables.) Note that the simplified Chart of Accounts setup can only be performed immediately after your Chart of Accounts and Account Balances Files have been initialized. If you need to repeat the procedure, you must return to the Master Menu and reinitialize those files. (Reinitializing a file deletes the contents of that file, so don't reinitialize unless you are prepared to start over.) SELECTION o Select - Utilities Enter 1 - Simplified Chart of Accts Setup 2 - 23 ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** SIMPLIFIED CHART OF ACCOUNTS SETUP *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ Organization type: ³ ³ ³ ³ orporation ³ ³ ole Proprietorship ³ ³

artnership . ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ ÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ ÉÍÍÍÍÍ» ÉÍÍÍÍÍ» º ÄÙ º to Continue º Esc º to Return to Menu ÈÍÍÍÍͼ ÈÍÍÍÍͼ Organization Type: Each time you perform the Simplified Setup procedure, you may generate a core Chart of Accounts for a: 1. Corporation, 2. Sole Proprietorship, or 3. Partnership. In addition to the changes you may make during the procedure, there are some differences built into the equity sections for each type of organization. Corporations are set up with equity sections containing accounts for common stock and retained earnings (terminology related to corporate entities). Sole proprietorships are set up with one set of capital and draw accounts. 2 - 24 Partnerships are set up with two sets of capital and draw accounts. A 50/50 partnership relationship is assumed during the setup. If more partners are required, or the division of equity is other than 50/50, then corrections and/or additions must be made through Chart of Accounts Maintenance after the Simplified Chart of Accounts is complete. o Enter the letter (C, S, or P) corresponding to your organization. If your entry displays a flashing arrow, confirm that you have entered a "C, S, or P". Other characters will not be accepted. S I M P L I F I E D C U R R E N T A S S E T S S E T U P ÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ C D ACCT O / ÄÄRANGEÄÄ LINE G/L ACCOUNT DESCRIPTION TYPE L C FROM TO SKIP $ ÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ 1000 - 0000 ASSETS................... 11 1 1010 - 0000 CURRENT ASSETS........... 12 1020 - 0000 CASH IN BANK............. 00 2 D 1030 - 0000 ......................... 00 2 D 1040 - 0000 ......................... 00 2 D 1050 - 0000 ACCOUNTS RECEIVABLE...... 01 2 D 1060 - 0000 ......................... 01 2 D 1070 - 0000 INVENTORY................ 21 2 D 1080 - 0000 ......................... 01 2 D 1090 - 0000 ......................... 01 2 D 1100 - 0000 PREPAID EXPENSES......... 01 2 D 1110 - 0000 ......................... 01 2 D 1120 - 0000 ......................... 01 2 D 1980 - 0000 SINGLE UNDERLINE......... 14 2 1990 - 0000 TOTAL CURRENT ASSETS..... 13 3 D 1000 1990 1 N ÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ ÉÍÍÍÍ» ÉÍÍÍÍ» º F1 º to Process º F2 º for Illustration ÈÍÍÍͼ ÈÍÍÍͼ 2 - 25 G/L ACCOUNT Account numbers can be changed as long as they are: 1. Numeric, and 2. In ascending order, e.g. 1000-0000 1010-0000, 1010-0001, etc.) As previously discussed, you may have 9,999 primary accounts, so don't squeeze your account numbers together. Account numbers which increase by 10 each time, for example, leave room to expand the accounts in a given range of accounts at a later date. (Once an account becomes part of your Chart of Accounts, its number cannot be changed without deleting that account, and you cannot delete an account if that account has transactions on file.) o Press to accept the account number displayed, or Enter any other account number which is larger than the previous number. If your entry results in a flashing arrow, verify that the number you have entered is larger than the previous account number. A number that is smaller than the previous number will not be accepted. 2 - 26 Description The description, associated with each account number, is used throughout the General Ledger system. During the Simplified Setup procedure, the description also determines whether or not an account will be included in the resulting Chart of Accounts. Accounts with descriptions will be included in the core Chart of Accounts. Accounts without descriptions will not be included in the core Chart of Accounts. Adding a description to an account that does not have a description will add that account to the core Chart of Accounts, while deleting a description will exclude that account from the core Chart of Accounts. Descriptions which appear boldfaced (high intensity) are format accounts which, although they are not mandatory, are highly recommended and you should give them extra consideration before you delete them. Descriptions which are highlighted (reverse-video) are mandatory accounts and cannot be deleted, except via Chart of Accounts File Maintenance. In addition to adding and deleting accounts by adding or deleting descriptions, you may also change an account's description. 2 - 27 SCENARIOS A company has a checking account in Union Bank. The description provided in the Simplified Current Assets Setup for account 1020-0000 is CASH IN BANK. The company changes the description for account 1020-0000 to "CASH IN BANK - UNION BANK". All reports containing account descriptions will now report account 1020-0000 as "CASH IN BANK - UNION BANK". Another company is in the service business and has no inventory, so the inventory account provided in the Simplified Current Assets setup section (1070-0000) doesn't really apply. The company uses the key to delete the description (INVENTORY) to exclude that account from the resulting Chart of Accounts. The same company also maintains two bank accounts, one in Union Bank and the other in Wells Fargo Bank. The Simplified Current Assets Setup provides for only one account as CASH IN BANK. However, there are two unused (blank) accounts immediately following CASH IN BANK. By entering "CASH IN BANK - WELLS FARGO" as the description for one of the blank accounts, the company includes that account in the resulting Chart of Accounts. 2 - 28 o Press to accept the description displayed, or Enter the description of your choice, or Press the key to delete the description and exclude that account from the resulting Chart of Accounts, or If a description is not displayed, you may enter a description to include that account in the resulting Chart of Accounts. If your entry results in a flashing arrow, confirm that you are not attempting to delete a mandatory account. Highlighted (reverse video) accounts cannot be deleted. 2 - 29 Process o When you are satisfied with the accounts in each group of accounts, press . Levinson Lyon will: 1. Establish a record for each account in your Chart of Accounts, and 2. Display the next group of accounts. When the last group of accounts has been processed, your Chart of Accounts will be complete, and you should: 1. Print a Chart of Accounts Listing, and 2. Print a Balance Sheet and Income Statement with zero balances. ================================================================= 2 - 30 ================================================================= CHART OF ACCOUNTS FILE LISTING ================================================================= The Chart of Accounts File Listing is an 80 column report that lists the contents of the Chart of Accounts File for all accounts or a range of accounts. It serves as a reference during: - Journal Transaction Entry / Correction - Journal Transaction File Maintenance - Chart of Accounts File Maintenance - Budget Maintenance - Schedule Maintenance - Gross Profit Inventory Adjustment Maintenance - Tax Accrual Adjustment Maintenance - Account Balances Maintenance - System Control File Maintenance You should print the Chart of Accounts File Listing: 1. After setting up your Chart of Accounts, and 2. After making any modifications to your Chart of Accounts. The listing is printed in Account Number order and includes: - Account number - Account description - Account type * Print column * Debit/Credit * Starting/Ending Account numbers (for totaling) * Line skip control * Dollar sign formatting * Partnership allocation percentages * Year-end closing accounts Variables marked with an (*) are a function of the account type. You may also optionally exclude all non-posting accounts and all but the first sub-account for each primary account. 2 - 31 SELECTION o Select - File Listings Enter 1 - Chart of Accounts ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** CHART OF ACCOUNTS LISTING *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ Starting Account: .... - .... ³ ³ ³ ³ Ending Account: .... - .... ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ ³ ³ Include Formating ³ ³ Accounts? (Y/N): . ³ ³ ³ ³ Suppress Sub-accounts? (Y/N): . ³ ³ ³ ³ Print Mode: ³ ³ ³ ³

rinter isplay ile . ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ F1 -Print Report F2 -Clear Esc -Return to Menu Include Format Accounts? o Enter "Y" if you want non-posting (format) accounts to be included in your Chart of Accounts Listing. o Enter "N" to print the Chart of Accounts Listing without the format accounts. 2 - 32 Suppress Sub-accounts? o Enter "Y" if you do not wish to see repetitive sub-accounts for the same primary account printed on Chart of Accounts Listing. This option will cause only the first occurrence of a primary account number to be printed. Subsequent sub-accounts bearing the same primary account will not be printed. o Enter "N" to include all sub-account detail on the Chart of Accounts Listing. Print Report o When your report format is complete, press to continue with the printing procedure. ================================================================= 2 - 33 ================================================================= SETTING UP DEPARTMENTS AND DIVISIONS ================================================================= As previously discussed, you may have 9,999 primary accounts. You may also have 9,999 sub-accounts for each primary account, with each four-digit sub-account number defining a unique department. Used in conjunction with divisional reporting, the first two numbers of each department may be used to define a division which will combine and report revenue and expenses for departments within a division for each primary account. We will use the following example to clarify how the amounts and the descriptions used for those amounts are derived from the Chart of Accounts and the Account Balances File for: 1. Combined Income Statements, 2. Departmental Income Statements, and 3. Divisional Income Statements. The example shows a range of account numbers and their descriptions, taken from a Chart of Accounts, and the balance of the amounts posted to those accounts, taken from the Account Balances File. 2 - 34 EXAMPLE ACCT ACCT NUMBER DESCRIPTION BALANCE 6010-0000 Sales 0 6010-1000 East Sales 0 6010-1010 Sales-NY 500 6010-1011 Sales-MS 100 6010-1012 Sales-NJ 100 6010-1100 West Sales 1000 7510-0000 Advertising 0 7510-1000 East Advertising 0 7510-1010 Advertising-NY 300 7510-1011 Advertising-MA 100 7510-1012 Advertising-NJ 100 7510-1100 West Advertising 500 7520-0000 Promotions 0 7520-1000 East Promotions 0 7520-1010 Promotions-NY 200 7520-1011 Promotions-MA 100 7520-1012 Promotions-NJ 100 7520-1100 West Promotions 200 8050-0000 Salaries 0 8050-1000 East Salaries 0 8050-1010 Salaries-NY 2000 8050-1011 Salaries-MA 100 8050-1012 Salaries-NJ 100 8050-1100 West Salaries 1000 Our example shows four primary accounts (6010, 7510, 7520, and 8050). Four sub-accounts are also defined as departments (1010, 1011, 1012, and 1100), and two divisions are defined as Division 10 and Division 11. 2 - 35 The following sections from combined, departmental, and divisional Income Statements were derived from our example. Note that the column on the left lists the accounts used for the descriptions, and the column on the right lists the account(s) used to report the amounts. ("X" indicates any number in that position.) COMBINED STATEMENT 6010-0000 Sales 1700 (6010-XXXX) 7510-0000 Advertising 1000 (7510-XXXX) 7520-0000 Promotions 600 (7520-XXXX) 8050-0000 Salaries 3200 (8050-XXXX) The combined statement combines and reports the total amount posted to all accounts with the same primary account number. For example, the "SALES" account description is taken from the first 6010 account (6010-0000), and the amount was calculated by combining the amounts for all 6010 accounts. DEPARTMENT 1010 STATEMENT 6010-1010 Sales NY 500 (6010-1010) 7510-1010 Advertising NY 300 (7510-1010) 7520-1010 Promotions NY 200 (7520-1010) 8050-1010 Salaries NY 2000 (8050-1010) The departmental statement is relatively straight forward. In our "Department 1010 Statement" there can only be one account "1010" for each primary account, and the statement reports the description used for that account and the amount posted to that account for each primary account, i.e. the description and amount account numbers are always the same. 2 - 36 DIVISION 10 STATEMENT 6010-1000 East Sales 700 (6010-10XX) 7510-1000 East Advertising 500 (7510-10XX) 7520-1000 East Promotions 400 (7520-10XX) 8050-1000 East Salaries 2200 (8050-10XX) The divisional statement is more like a combined statement than a departmental statement. It combines the amounts for all departments beginning with the same two sub-account numbers for each primary account. In our Division 10 Statement, for example, the "EAST SALES" description comes from the first division "10" account (6010-1000), and the amount includes all amounts for accounts beginning with "6010-10" Note that: - The account description always comes from the first occurrence of that account in the Chart of Accounts. For combined statements it is the first occurrence of the primary account. For the divisional statements it is the first occurrence of the divisional account within each primary account. (For departmental statements, the departmental account only occurs once within each primary account.) In our example, the first occurrence of each primary and divisional account has been reserved for description purposes, i.e. all amounts have been posted to sub-accounts and the first occurrence of each account has a zero balance. - The only difference between the Combined Statement and the Division 10 Statement is the amounts posted to the Department 1100 accounts. - A Division 11 Statement, for the accounts in our example, would be identical to a Department 1100 Statement. 2 - 37 - In addition to printing Income Statements by departments and divisions, amounts posted to sub- accounts defined or not defined as departments or divisions may also be reported with supporting financial schedules for both the Income Statement and the Balance Sheet. (See Setting Up Financial Schedules.) PROCEDURE If you will be printing departmental and/or divisional Income Statements: 1. Define your departments and divisions in the Department Name and Division Name File respectively, 2. Use the Department Quik Add function to enter departmental sub-accounts for the appropriate Income Statement accounts, or 3. Use the Chart of Accounts File Maintenance function to enter departmental sub-accounts for the appropriate Income Statement accounts, and 4. Print the resulting Chart of Accounts File Listing and zero balance Income Statements. ================================================================= 2 - 38 ================================================================= DIVISION NAME FILE ================================================================= The Division Name File is a multiple record file that maintains a record for each Division you define. Each record maintains: - A division number - A division name If you do not intend to print Divisional Income Statements, then you may proceed to the Department Name File. Reports based, all or in part, on the contents of the Division Name File include: - Division File Listing - Divisional Income Statements SELECTION Select - File Maintenance Enter 4 - Division Name 2 - 39 ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** DIVISION NAME MAINTENANCE *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ ACTION: dd hange elete nquire . ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Division Number: .. ³ ³ ³ ³ Division Name: ......................... ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ F1 -Process F2 -Clear F3 -Prev F4 -Next F5 -First F6 -Last Esc -Menu ACTION o Enter "A" for ADD. Division Number: The Division Number identifies the location of the division record in the Division Name File. Each Division Number must be unique and may be from one to two digits long. Note that the Divisional Income Statements total the amounts posted to sub-accounts (departments) beginning with the division number for each primary account. o Enter the number you will be using to identify the division. 2 - 40 Division Name: The division's name will be printed as a heading on the division's Income Statement. o Enter the division's name. Process - Return to Menu o When the form is complete, press to add the division to the Division Name File. When the action is complete, you may: 1. Define another division, or 2. Press to return to the menu. ================================================================= 2 - 41 ================================================================= DIVISION NAME FILE LISTING ================================================================= The Division Name File Listing is an 80 column report that lists the contents of the Division Name File for all divisions or a range of divisions. It serves as a reference during: - Division Name File Maintenance - Chart of Accounts File Maintenance - Divisional Income Statement printing You should print the Division Name File Listing: 1. After setting up the Division Name File, and 2. After making modifications to the Division Name File. The listing is printed in Division number order and includes: - Division Number - Division Name SELECTION o Select - File Listings Enter 4 - Division Name 2 - 42 ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** DIVISION NAME LISTING *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ Starting Division Number: .. ³ ³ ³ ³ Ending Division Number: .. ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Print Mode: ³ ³ ³ ³

rinter isplay ile . ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ F1 -Print Report F2 -Clear Esc -Return to Menu Print Report o When the report format is complete, press to continue with the printing procedure. ================================================================= 2 - 43 ================================================================= DEPARTMENT NAME FILE ================================================================= The Department Name File is a multiple record file that maintains a record for each Department you define. Each record maintains: - A department number - A department name If you do not intend to print Departmental Income Statements, you may proceed to "Setting Up Financial Schedules". Reports based, all or in part, on the contents of the Department Name File include: - Department File Listing - Income Statement SELECTION Select - File Maintenance Enter 5 - Department Name 2 - 44 ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** DEPARTMENT NAME MAINTENANCE *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ ACTION: dd hange elete nquire . ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Department ID: .... ³ ³ ³ ³ Department Name: ......................... ³ ÀÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÙ F1 -Process F2 -Clear F3 -Prev F4 -Next F5 -First F6 -Last Esc -Menu ACTION o Enter "A" for ADD. Department ID: The department ID identifies the location of the department in the Department Name File. Each department ID must be unique and may be from one to four digits long, i.e. it is a four digit sub-account number. Note that if a department is to be included in a Divisional Income Statement, that department's first two numbers must be the same as the division number. 2 - 45 o Enter the number you will be using to identify the department. Department Name: The department's name will be printed as a heading on the department's Income Statement. o Enter the Department's Name Process - Return to Menu o When the form is complete, press to add the department to the Department Name File. When the action is complete, you may: 1. Define another department, or 2. Press to return to the menu. ================================================================= 2 - 46 ================================================================= DEPARTMENT NAME FILE LISTING ================================================================= The Department Name File Listing is an 80 column report that lists the contents of the Department Name File for all departments or a range of departments. It serves as a reference during: - Department Name File Maintenance - Chart of Accounts Setup - Departmental Income Statement printing You should print the Department Name File Listing: 1. After setting up the Department Name File, and 2. After making modifications to the Department Name File. The listing is printed in Department number order and includes: - Department Number - Department Name SELECTION o Select - File Listings Enter 5 - Department Name 2 - 47 ÉÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍ» º *** DEPARTMENT NAME LISTING *** º ÈÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍÍͼ ÚÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ¿ ³ Starting Dept ID: .... ³ ³ ³ ³ Ending Dept ID: .... ³ ÃÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄÄ´ ³ Print Mode: ³ ³ ³ ³

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