GL Accounts

A General Ledger (GL) is defined by an organization and shared across organization units within that organization. Some characteristics (e.g., account length and format, close date, etc.) are at the organization level. Each GL account number is identified with a financial company. An account number must be unique within the organization. One way to achieve a parallel account structure is to use the leading segment in the account number to refer to the financial company. The remaining characters can then be identical to accounts in other companies. For each company, a due from (debit) and due to (credit) account must be set up with every other company within the organization. 

A financial company can only be assigned to one organization unit, but multiple financial companies can be assigned to a single organization unit.

When revenue for a product is shared between companies, the company of the receivable account is the owner of the order line. For example, revenue is shared between company 1 and company 2. The receivable account belongs to company 1. In this case, there will be a due from (debit) created for company 2 (from company 1) and a due to (credit) for company 1 (to company 2). The due to/due from is created based on the company of the AR or PPL account being different from the company of the (deferred) revenue account.

When one receipt is applied to multiple order lines, each of which are in different companies, the company of the cash account is the owner of the receipt. For example, one receipt is applied to both order line 1 in company 1 and order line 2 in company 2.  The cash account is received into company 1. In this case, there will be a due from (debit) created for company 2 (from company 1) and a due to (credit) for company 1 (to company 2). The due to/due from is created based on the company of the cash account being different from the company of the AR or PPL account. This has implications for all financial transactions that affect order lines in multiple companies.

The GL definition applies to all financial companies within the organization, and therefore, to all organization units as well. In this screen, you can add new GL accounts or modify existing accounts, or define accounts by masked copy.

The GL Accounts screen allows you to view, edit, delete, and add GL Accounts for an Organization Unit.

To manage GL Accounts for an Organization Unit:

1. From the Accounting Setup section on the Organization Unit Settings page, click GL Accounts.
   The GL Accounts  page will display, as shown below.
   
2. Search and filter the list of GL Accounts using the filter fields at the top.
3. Click the pencil icon to the right of a GL Account to edit the account.
   From the edit screen, you can edit the Description, Account Class, Account Function, and Active toggle for an existing GL Account.
4. Click the contextual menu for a GL Account to delete the account.
   If records exist for the GL Account, when the user attempts to delete a validation message will appear, e.g., "Cannot delete account: 1-20100-10-000. The Account you are attempting to delete has transactions against it in the AR Transaction Details."
5. Click  +New GL Account to add a new GL Account to the Organization Unit.
   The Add New GL Account screen displays, as shown below.
   
6. Select the Financial Company from the drop-down menu.
7. Enter the Account Number.
8. Enter a Description of the GL Account.
9. Select the Account Class from the drop-down menu. The class of the GL account. For example, asset or liability. This is used as a filter for account selection to enforce the appropriate use of accounts as per the functionality. For example, the lookup for a revenue account should use "Revenue" as a filter so that no other types of accounts are made available for revenue account selection.
10. Select the Account Function from the drop-down menu. The function of the GL account. Used to identify the kind of account referenced when setting up products and other account search functions. For example, Credit Balance or Accounts Receivable.
11. Select YES or NO to indicate whether the GL account is currently Active.
12. Click Save and Add Another to enter another GL Account, or click Save.

Screen Element	Description
Financial Company	Drop-down. The Financial Company associated with the GL account you want to access or create.
Account Number	Text box. The account number for the GL account. This number must be unique within the organization unit. It also must be the specified segment length and use the segment separator. The account segment length and separator are defined on the Defining GL Segment Structure page.
Description	Text box. The description of the GL account for which you want to search or that you want to add.
Account Class	Drop-down. This selection is used to enforce the appropriate use of accounts as per the functionality.
Account Function	Drop-down. The function of the GL account. Used to identify the kind of account referenced when setting up products and other account search functions. This is set so users do not inadvertently use the incorrect account.
Active	Toggle. Select YES to set the account to active. Only active accounts display in the lookup and can be used for product setup or in transactions.