About Designing Your General Ledger

Before you begin setting up any part of your general ledger, design your chart of accounts, and select system-wide options.

Designing a Chart of Accounts

How you organize your chart of accounts depends on how you intend to use particular features of the General Ledger system. You must decide:

• Which accounts you need.
• Which account segments each account requires.
• How you will assign account numbers.

Begin by listing the accounts you need, and then decide on an account numbering scheme that suits your financial reporting requirements.

If you do not have an accountant to assist you, use one of the sample data charts of accounts as a guideline for designing your own chart of accounts. Print the sample charts of accounts by opening Open General Ledger > G/L Reports >  Chart of Accounts.

Important! Design your chart of accounts carefully. It is much easier to move accounts around before entering them, than to change them afterward.

Selecting System-Wide Options

You must choose some system-wide options before setting up your General Ledger. These include:

• Multicurrency setting. With multicurrency turned on, you can process transactions in more than one currency. If you select multicurrency, you must also select your home currency (called the functional currency). You make this selection on the Company Profile screen.
• Number of fiscal periods. Select either 12 or 13 periods for your fiscal year. You make this selection on the Company Profile screen.
• Currency codes, rate types, tables, and rates. You maintain all currency information using the Currency screens.

Last published: 4/8/2016