What is the General Ledger?

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Commitment Control ensures that commitments and expenditures do not exceed total budgets. Set up Commitment Control budgets and budget ledgers and link them to the actuals ledgers. This enables you to create journal entries in PeopleSoft General Ledger. This section provides an overview of:. Commitment Control journal entries. Commitment Control journal entries with entry events.

Journal entries with budget checking errors. Before you use Commitment Control with General ledger definition transactions Ledger:. Set up your system for Commitment Control processing. Set up ledger groups specifically for control budgets and link the budget ledgers to the ledgers recording actual transactions actuals ledgers using the Ledger For A Unit page.

The commitment control journal entry that you enter depends on the Commitment Control amount type that you select. Updates the Commitment Control planned ledger.

The budget processor decides which Commitment Control ledgers to update based upon the budget definition rules. For each Commitment Control general ledger definition transactions group that is associated with an actuals ledger group, the budget processor determines by account type where the specific transaction will impact. If impacting the Expenditure ledger group, then the Expense ledger is selected. If impacting the Revenue ledger group, then the Recognized ledger is selected.

The journal transaction is recorded in the actuals ledger and the revenue or expenditure commitment control ledger is updated. Updates the Commitment Control pre-encumbrance ledger only expenditure ledger groups only. Updates the Commitment Control encumbrance ledger only expenditure ledger groups only.

Updates the Commitment Control collected ledger only general ledger definition transactions ledger groups only. Actuals, Recognize, Collected Revenue. General ledger definition transactions Control journal entries general ledger definition transactions be for interunit journals, reversals, allocations, revaluation, and translation journals that are set up for or linked to a Commitment Control ledger group. You process the journal online or through batch processing.

Budget processor may fail a transaction if it does not comply with the budget rules. Rules control whether general ledger definition transactions not spending can exceed a budget. It also verifies that you have valid ChartFields based on the budget ledger or ledgers and updates these budget ledgers with the journal amounts. An error is generated for the transaction if there is a problem, which you can correct before you continue with your processing.

If everything is correct, budget processor updates the budget amounts in the commitment control budget ledgers. If you selected an actuals commitment control type prior to creating the journal entry, the detail accounting transactions are posted to the actuals ledger, while the budget amounts are updated in the commitment control budget ledgers by the budget processor. If you selected pre-encumbrance, encumbrance, or collected revenue, the budget processor only updates the budget amounts in the corresponding Commitment Control ledger, and the actuals ledger is not updated.

If you want to adjust the specific budget amount and create the appropriate budgetary accounting entry, general ledger definition transactions entry event on the budget adjustment journal entry. When the Amount Types, pre-encumbrance, encumbrance, collected revenue, and planned are selected, journal edit does not perform the balancing process on the journal, which means that it does not recycle or suspend the general ledger definition transactions, even if the journal is not balanced.

Budget checking errors can be corrected by:. Increasing or moving budget amounts. Updating trees that are used by the budget definition. After making any of these corrections, you will need to rerun the budget processor to clear the general ledger definition transactions and update the Commitment Control ledgers and supporting tables. This option allows you to resolve errors before you post your final budgets to the ledgers.

When errors are encountered during the Check Only process, they are reported at the budget journal and journal line level and written to the status logs to be accessed through existing commitment control inquiries, just as they are with the regular checking and posting of budgets.

A Check Only that results in logged errors general ledger definition transactions the Budget Status to E errors and the application links an access to the exception table functions as with normal budget checking and posting.

Lines with errors are updated to a status of E error and remaining valid lines have a status of N not checked. Understanding Commitment Control and General Ledger Journals Commitment Control ensures that commitments and expenditures do not exceed total budgets.

This section provides an overview of: Do not change this definition. Commitment Control Journal Entries The commitment control journal entry that you enter depends on the Commitment Control amount type that you select.

Understanding Exception Handling and Notification.

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Explaining the purpose of the General Ledger is perhaps a difficult task for any teacher of Accounting. One reason is because in this age of computers and information technology, the General Ledger does not any longer have an easily identifiable physical form. In early times a Ledger would have taken the form of a book see Figure 1 , and hence the term "Bookkeeping".

The purpose of such a ledger was to record transactions. The pages of the Ledger would have been ruled into columns to facilitate neatness and discipline in writing figures.

In more recent times, prior to the computer age, the General Ledger was a large loose-leaf document containing in a special adjustable binder see Figure 2. The standard format for a page in a general ledger is portrayed by Figure 3 below.

There are three columns for recording money - Debit, Credit and Balance. There is one page in the General Ledger for each Account , and typically the number of Accounts will be many, depending on the Chart of Accounts.

Provided the General Ledger is up to date, the General Ledger will show the current balance of each account. The account shows the Cash Receipts every month money coming in and Cash Payments money going out.

Perhaps the best way to explain the purpose of the General Ledger is to provide a diagram see figure 4 below. First of all, it is important to remember that the purpose of the Accounting Process is to summarise, record and make sense of, the thousands of financial transactions that occur in a year, so that Financial Reports can be produced. The General Ledger receives, on a monthly basis, summarised information from the Journals which are themselves the basic day-to-day record of transactions.

This is illustrated in Figure 3 above where you can see information being recorded on a monthly basis. At the end of the financial year, the General Ledger then provides a final balance for each account, summarising all the monthly journal postings.

Today, in most businesses, the General Ledger is a component of Financial Accounting Software and exists in the form of an electronic database. In teaching the General Ledger, however, most teachers still revert to explanations which use the earlier paper-based format. The explanation given on this web page will also rely on the paper-based form. Contact Us Privacy Policy Home. What is the General Ledger? General Ledger kept in a book form In more recent times, prior to the computer age, the General Ledger was a large loose-leaf document containing in a special adjustable binder see Figure 2.

Figure 1 Figure 2: Loose leaf General Ledger format The standard format for a page in a general ledger is portrayed by Figure 3 below. Format of the General Ledger Perhaps the best way to explain the purpose of the General Ledger is to provide a diagram see figure 4 below.

Figure 4 Today, in most businesses, the General Ledger is a component of Financial Accounting Software and exists in the form of an electronic database. Software for Club Treasurers. Loose leaf General Ledger format. Format of the General Ledger.