Posting AR to General Ledger

Transactions from Accounts Receivable may automatically post to General Ledger. Through the GL Distribution flag set in the AR to GL Posting F/M, you determine how to post to GL for all AR transactions except sales (if at all). The flag may be set to one of the following: 0-indicating no GL distribution is printed or posted; 1-indicating the GL distribution is printed (printing is in detail format) but not posted to GL; 2-indicating the GL distribution is printed (printing is in detail format) and posted to GL in summary (posting includes the total amount posted to each account number); or 3-indicating the GL distribution is printed (printing is in detail format) and posted to GL in detail (posting includes each item contributing to the amount for each account number).

Through the GL Posting Journal also set in the AR to GL Posting F/M, you determine which GL journal (where in the general ledger journal file) to post transactions from Accounts Receivable for all AR transactions except sales (if at all).

The Accounts Receivable transactions that may print a GL distribution and post to GL are the transactions from the AR Sales Register, Cash Receipts & Adjustments Register, Returned Check Register and the Service Charge Register.

The GL distributions are built and posted through the use of GL posting tables.

Users establish their own set of valid GL posting tables. Each customer is assigned to a GL posting table that determines the correct GL account numbers to post to when posting a transaction to general ledger for that customer. The posting tables determine the general ledger distribution after the printing of various registers throughout the system. The following registers use the GL account numbers set up in the AR GL posting table(s):

• Cash Receipts & Adjustments Register distributes to accounts receivable G/L #, discount G/L # and adjustment G/L #.
  
• Service Charge Register distributes to service charges G/L #.
  
• Returned Check Register distributes to returned checks G/L #.
  
• AR Sales Register may distribute to Sales G/L #.
  
• SO Daily Sales Register may distribute to sales, misc. sales, inter-warehouse A/R, deposits, and accounts receivable G/L #s.
  

For our example, there are two types of customers on the system: retail and wholesale. If retail and wholesale customers are to be posted separately to general ledger, we will set up two GL posting tables; one to assign to retail customers and one to assign to wholesale customers.

The following examples use the GL posting tables listed previously. The examples include all registers that use the AR GL posting tables. We will use two customers: Williams Wholesale who is assigned to the WSL GL posting table, and Reeves Retail who is assigned to the RET GL posting table.

Cash Receipts & Adjustments Register

Williams Wholesale makes a payment of $504.70 and takes a discount of $5.30. Reeves Retail makes a payment of $225.00 for a $225.02 invoice leaving a balance of $.02. You adjust the balance down to zero. Using the GL posting tables, the GL distribution prints as follows:

* indicates G/L # is not pulled from the AR GL posting table. It is pulled from the bank making the deposit.

Adjustments may be posted to the general ledger by the adjustments G/L # assigned to the GL posting table or by the adjustment code. See the Adjustment Code F/M for more information.

Service Charge Register

Williams Wholesale (owes) is charged a $2.35 service charge and Reeves Retail (owes) is charged a $1.70 service charge. Using the GL posting tables, the distribution prints as follows:

Returned Check Register

A returned check is entered for Williams Wholesale for $524.70 and a $15 returned check fee is charged. Using the GL posting tables, the GL distribution prints as follows:

* indicates G/L # is not pulled from the AR GL posting table. It is pulled from the  bank entering the returned check.

AR Sales Register

Invoices are entered for Williams Wholesale at $320 and Reeves Retail at $240. No tax or freight is charged. Using the GL posting tables, the GL distribution prints as follows:

Sales may be posted to the general ledger by the sales G/L # assigned in the AR Sales to GL Posting F/M.

SO Daily Sales Register

An invoice is entered for Williams Wholesale at $320; $300 is for regular items and $20 is for misc. items and a $50 deposit in received for other goods. No tax or freight is charged. The misc. sales G/L # is only used if misc. sales are posted to the general ledger by the AR GL posting table as assigned in the SO to GL posting record. (See the SO to GL Posting F/M.) The item sold must have the Misc sales flag set to Y (in the Item F/M) for the item to post to the misc. sales G/L number rather than the sales G/L #. Using the GL posting tables, the GL distribution prints as follows: