Creating a new General Ledger (GL)

Creating a new General Ledger (GL)

Purpose

There are times when you will be processing transactions into COSTAR or your Accountant has requested a new General Ledger (GL) be created. 
A new GL may be required if;
  1.     You have purchased a new vehicle/asset for the business
  2.     You may have taken out a loan and need to establish the balance to be repaid
  3.     An invoice from a supplier may need to be entered but you but don’t have an accurate GL to associate the invoice with.
  4.     You have a new Bank Account to Reconcile

Creating a new General Ledger

To create the new GL  you will need to;
  1. Navigate to Financials,
  2. Then select G/L Maintenance.
  3. The next step is to choose a GL number that is not currently in use.
To see the list of all currently used codes, you can either click on the Search button at the top of the window, or click on the magnifying glass next to the Account # field.

This will open a search window. Clicking on Search will bring back the results of all codes currently in use.
Use the Type search field to enter the GL Type you are looking to create i.e.  A (Asset), L (Liability), R (Revenue) or E (Expense) to find all the existing GL’s of that type. You can then sort the results by the GL# header into numerical order.


 You will note that each GL Type will begin with an identifying number i.e.

7 = A – Asset, 9 = L – Liability, 1 = R – Revenue, 4 = E – Expense

They will also often end with the corresponding Branch number the GL is applicable for. For instance, If I needed a new Bank Account for Branch 1. I might make the GL 48411. 4 to denote that it is an Expense and 1 at the end to denote that it is for Branch 1.

Establishing your new General Ledger

You will need to Select a GL Number that is not currently being used and press Back.
Type the selected number into the Account # field and press TAB on the keyboard.
If the GL is not in use already, it will open up a blank record for you to fill out the information required.
  1. Give the GL a meaningful Title.
  2. Enter in the Branch you want this GL associated with.
  3. Set the Currency to your local currency
  4. Assign the Account type - If you are unsure what the Account Type should be you may need to contact your Accountant.
  5. Set the Subledger type to None
WarningIF you believe you require a subledger for the GL you are creating please contact Microhouse Support for assistance.
  

Bank Account General Ledgers

If the new GL you are creating is for a Bank Account that you need to reconcile, you will need to tick ‘Is this a Bank Account?’ And
‘Operating Bank Account?’
 
This will then allow you to fill in the Bank Account Details and the account will show as an option in the Bank Reconciliation screen.  
 

 

Please note that the Bank ID is the first 3 numbers of the BSB and the Branch ID is the second 3 numbers. The EFT Type is only used if you are paying your suppliers from this bank account using the AP Cheque Prep feature in COSTAR.

Warning
If you need this new Bank Account to appear on your customer Invoices and Statements and/or you need to re-direct your daily Cash and EFTCC takings to this account. Please contact Microhouse Support.

Reporting Structure Assignment

One you have established your new GL, the next step is to assign it into the reporting structure for the Balance Sheet, Chart of Accounts and Income Statement.

Assets (7) and Liabilities (9)

Select Balance Sheet from the left-hand side menu.
You will find all unassigned GLs on the right-hand side.
To allocate them into the reporting structure, simply expand the Assets and Liabilities list and Drag and Drop the GL to where it should be captured on the report.
If you are unsure where the GL should be allocated, then you should consult your accountant


Revenue (1) and Expenses (4)

Select Income Statement from the left-hand side menu.
You will find all unassigned GLs on the right-hand side.
To allocate them into the reporting structure, simply expand the Expense and Revenue list and Drag and Drop the GL to where it should be captured.
If you are unsure where the GL should be allocated, then you should consult your accountant


Assets (7), Liabilities (9), Revenue (1) and Expenses (4)

Select the Chart of Accounts report on the left hand menu and drag and drop the GL into the reporting structure.

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