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Accounting Guides

Which accounting guide do you need? It depends on what is in front of you: a chart of accounts to build before go-live, balances to bring across from your old system, a journal to post or put right, a bank statement that has to agree with a cashbook, a period to close, or an auditor on the way. These guides are for whoever keeps the books; each finishes with a check you can run, using GadgetSphere Sdn Bhd — 22 branches and two sister companies, so three Sets of Books.

Why the books behave as they do is on What posts to the ledger, and where balances come from.

Find your situation

What you are askingRead
A new company is going live and the first invoice has to postChart of Accounts Setup — an unmapped default GL code shows up after FINAL, not at it
“My opening balances are in but retained earnings looks wrong.” — or you have not loaded them yetOpening Balance Migration
A journal went to the wrong account — or there is an accrual or a depreciation charge to postJournal Entries
“How do I reconcile a bank statement?”Bank Reconciliation
The month is over and the accountant wants statementsMonth-End Closing, then Financial Reporting
Who may post, delete or reopen a monthWho May Change the Books
“Can I set a credit limit that actually stops an order?”Credit Limits and Payment Terms
An auditor, a tax agent or the year endReviewing a Set of Books

When something looks wrong

What you seeRead
“Where did this figure come from? Nothing on the screen says.”Which figures BigLedger stores, and which it works out fresh
“The Trial Balance doesn’t agree with the ledger”, or its tab is empty or short of a monthThe Trial Balance doesn’t agree with the ledger
An invoice is FINAL and its journal is missingThe invoice is FINAL but it is not in the ledger — fix the cause, then Resolve in Trace Document, which names any cause left
Bank charges are in the ledger and not on the reconciliationBank Reconciliation › Now post only what needs posting — they were keyed as a manual journal
“Everything is matched to zero and the bank reconciliation still won’t tally”, or shows a difference with every line matchedBank reconciliation still won’t tally; one cause, a stored cashbook closing that is out of date, is on Post the Fix
A journal dated last month is in the ledger and not on the statementsMonth-End Closing, If something lands in March after you have closed
“The aging still shows an invoice I have already paid.”The aging shows an invoice that’s already paid
“This month’s cost of sales looks wrong”, or the margin jumped with no change in tradeThis month’s cost of sales looks wrong
“The margin report and the profit and loss don’t agree.”The margin report and the P&L don’t agree
“I voided it and the report still shows it.”What a Void Undoes

How the books fill themselves

Most of the ledger is keyed by nobody, and most “wrong number” questions mix up what writes it:

  • Documents write their journals after FINAL, in the background, from the company’s default GL codes at that moment — a missing code fails the journal or leaves it short, and nobody is told (Chart of Accounts Setup).
  • A manual journal is posted the moment you create it — no draft, no Finalise (Journal Entries).
  • Month End Processing writes what the statements read, and the month’s cost-of-sales journal; nothing runs it for you (Month-End Closing).
  • The cashbook is fed by documents only — a manual journal to the bank never reaches the reconciliation, so bank charges go on a voucher (Bank Reconciliation).
  • Some report figures are worked out when you look, others were stored on a date (Which figures BigLedger stores); when two disagree, the stored one is usually the older.

What BigLedger leaves to you

  • Nobody approves a journal before it posts — the control is a weekly review: Who May Change the Books, Step 3.
  • Month End Processing is a person’s job, once per Set of Books, with a check that each run wrote its closing journals: Month-End Processing, Stage 5.
  • The group statements and the cash flow statement are built outside BigLedger, after the intercompany balances are agreed: Reviewing a Set of Books, Step 6.
  • Whether the records are complete and in the right period is a judgement: Reviewing a Set of Books.

How you know the books are in order

At the end of each month, for each company, run the check in How you know a month is really closed, before you lock it: nothing FINAL without its journal, the close’s journals there, the statements agreeing with the lists behind them. Then the month’s snapshot has Trial Balance rows whose totals agree.

Missing Journal, Journal Not Balance and a balanced Trial Balance never catch a journal that left out an unmapped line — it balances. The receivable and payable tie-outs in that check do, and so does comparing the month’s sales and output-tax accounts with the sales report after a default GL code changes.

Read next

What each module’s documents post, and what has no report, is on What posts to the ledger; locks on Set of Books, Fiscal Years and Fiscal Periods. The Financial Accounting Module lists every applet; reference pages: Chart of Account, Ledger and Journal, Bank Reconciliation, Financial Report and Customer Maintenance applets.