Enhanced General Ledger Quick Steps version 8.016

Enhanced General Ledger Quick Steps version 8.016 The General Ledger module is designed to handle journal entries for various transactions that are not accounted for in other modules (A/P, Payroll etc.). This module is the hub of the Enhanced software system. For your convenience, many of the NYS Uniform System of Accounts, Fund types and various Federal and State required reports have been preloaded. Select only the codes/funds that you need (add any new ones that you may require). 1 Accounting Period Setup System Utilities Module Data Entry Tab Add/Edit G/L Accounting Periods Once the Enhanced program has been installed, the SYSTEM SETUP screen will appear. The Accounting Period Setup will need to be completed. Click OK and enter the number of Annual Periods first (i.e. Monthly, 12 periods) by clicking on the appropriate radio button. Now, click on File (toolbar) then New, and enter the appropriate fiscal year. Click OK. File Note: You will need to enter the prior fiscal year as well as the current fiscal year. Entering the prior fiscal year will allow you to establish ending balances from the previous year. Note: Once the accounting periods have been selected, the number of accounting periods cannot be changed, and all future fiscal years must use the same accounting period structure. Save information by clicking the Close icon (on the toolbar). Note: New accounting periods will need to be built at the beginning of each fiscal year. Simply return to the Systems Utilities module (as directed above). See following page. Select the Data Entry Tab click on Add/Edit G/L Accounting Periods. Click New (upper left) enter the new fiscal year and click on OK. Exit the screen by clicking the Close icon. 1

2 Adding Municipality Name, Address Etc. System Utilities Module System Tab Edit Organization Profile Record The Organization Profile Record menu step is used to enter information specific to your municipality (name, address etc.). It also establishes default G/L account numbers (the ones that are used most often) for primary accounts (bank account, accounts payable etc.). Make sure that appropriate general ledger account numbers have been setup prior to making any additional entries on this screen (see below Adding New G/L Account Numbers). The ones reflected on the screen below are suggested, and are the most common. Begin by clicking on the Organization tab (enter the required information as noted to the left), followed by the Payroll Tab and General Ledger Tab. The Memo, Logo, and Cash Flow tabs are optional. Note: The number shown in the Retirement # block is the municipality s state supplied employer code. This number will appear on the Retirement Report. Note (Payroll tab): The referenced default G/L account numbers reflected in the FICA Information boxes are Trust & Agency account numbers 2

Note: (General Ledger Tab): More than two checking accounts may be used if desired. If only one checking account is used for both A/P and P/R, simply note the same g/l number in both A/P and P/R Bank Acct. fields (i.e. 200.99). Payroll must use the 200.99 Bank Acct. to properly reflect postings. A/P and P/R Bank Acct. s are considered checking accounts by Enhanced. Using the Trust & Agency fund (or separate fund) is required to properly track various accounting activities Referenced FICA and Medicare rates and limits may be adjusted as necessary. Please review the g/l numbers entered, and make any appropriate changes. Add/Edit Account Control Specifications (General Ledger Module Data Entry Tab) We have previously structured the Enhanced system to automatically sense the type of account numbers (i.e. asset, liability etc.) based on the number of digits that comprises the respective account number. It is not normally necessary to alter this structure. 3 digit numbers are Assets 4 digit numbers are Revenues 5 digit numbers are Expenditures Adding New General Ledger Numbers System Utilities Module Data Entry Tab Add/Edit G/L Account Header Names You will need to enter additional G/L chart of account numbers specific to your municipality i.e. Trust & Agency cash accounts to accrue employer FICA & Medicare monies, etc. Reference your AUD, budget reports, balance sheet report (assets, liabilities etc.) for specific g/l numbers additional header names are entered at this point. The Account Header Names (show on the next page) will usually not need to be adjusted. 3

Note: additional Account Header Names may be added if not already listed. Please follow the example displayed by other listings, and enter the new listings in the same manner. This is the first step in establishing a new g/l number. The new g/l number must now be assigned to a specific fund(s) to be recognized by Enhanced, and to be made available for use. See Add/Edit G/L Account Information for instructions to add a g/l number for use by a particular fund or by multiple funds. 3 Add/Edit Fund, Obj. of Expend, Sub Acct. Names Enter specific Funds, object of Expenditure and Sub Accounts (if required). Simply click in the Fund # box (under the zero) and enter a number (i.e. 1 for fund A, 2 for fund B etc.) followed by a description (i.e. General Fund A). Important Note: Do Not overwrite the zero Enhanced uses the zero field! Now, click on the Obj # box (under the zero) and make any additions or corrections. Sub- Acct. s can also be used (if desired) to further segment the account number, and to provide further detail. 4

Note: marking an existing entry Delete will remove it from all reports and drop down listings. You may remark the entry Active at anytime to begin re-using the respective listing. Save information by clicking the Close icon (on the toolbar). Add/Edit G/L Account Information Click New (toolbar). Enter new g/l Account number as well as a Fund #, Object (1, 2, etc.); and Subacct. (if using sub-accounts). The account structure is numeric, with an alpha-number description. The accounts and the descriptions are based on the Uniform System of Accounts State of New York. Save information by clicking File (toolbar) then Close. Important Do Not assign sub-accounts to fund balance accounts (i.e. 909). Important Make sure that all g/l revenue and expenditure accounts have a Prime Account (g/l number fund number zero for object of expenditure and zero for sub-acct.), i.e. G/L No. Fund Object Sub-Acct. Prime Account 12201 1 0 0 You may now assign various object of expenditures and/or sub-accounts if desired, i.e. Prime Account w/object 12201 1 1 0 Prime Account w/sub 12201 1 0 1 Many of the Enhanced reports will provide an option to report on just the prime account numbers (which accumulates all the totals for its respective objects and/or sub-accounts) displaying a grand total amount for each of the general ledger account numbers. This feature is most important when generating the AUD report (year-end totaling report). 5

Note: if you are unable to enter an account number, please check the Account Header Names to confirm that the g/l number exist. If not, add it in Add/Edit G/L Account Header Names and return to this screen to complete the entry. You are now ready to enter beginning balances. Beginning balances can be entered at any time (although we suggest that you make the appropriate entries prior to using the system). You will not be able to produce meaningful financial statements until they are complete.. but you will still be able to use the system, and all functions! 4 Beginning Balances General Ledger Data Entry Tab Add/Edit Journal Entries General Ledger beginning balances are entered through journal entries. Beginning balances must be entered to obtain meaningful financial statements. Note: Enter beginning balances in the last month of the prior fiscal year (if starting this system at the beginning of your fiscal year. If you are starting Enhanced at anytime other than the beginning of the year see Beginning Balances for Mid Year Start up later in this section). Please make beginning balance entries one fund at a time (i.e. General Fund (Close icon ) Highway fund (Close icon ) etc.). Once entered and updated, beginning balances can only be changed by re-opening the closed (updated) accounting period (not recommended). Select Add/Edit Journal Entry press OK. Click on the Add Button (G/L Session Setting box). Enter the beginning balance date (i.e. the last day of the last month of the prior year) press Enter Enhanced will prompt you to confirm the date press OK. Enter a user defined reference number and description ( i.e. Opening Balance 2003). Select a G/L account number by typing the first few numbers and pressing Enter, or by double clicking on the white part of the G/L acct box. 6

An example follows: Debit Cash Account for Gen. Fund A: 200.1.0.0 then Credit Fund Balance for Gen Fund A: 909.1.0.0 The above entries would be made by typing 200.1 (first line) 909.1 (second line) press enter the system will automatically enter the remaining zeros. Zeros are displayed to reflect the length of the respective account segments. Note: enter all balance sheet asset accounts as a Debit; enter all balance sheet liability accounts as a Credit. Once total debits equal total credits, close window to save (Close icon ). Repeat procedure for each fund (using separate batches). Note: Run a Trial Balance for each fund from the General Ledger Module Reports Tab to verify account totals. If the account balances are correct for respective funds, close the report you will be asked if you want to update the trial balance. Please verify the beginning balances prior to updating If corrections are needed, proceed to the Data Entry Tab (General Ledger module) and click on Add/Edit Journal Entries. Click on the Edit button when the G/L Session Setting box is displayed. Click on the down arrow under (Edit) Batch# and click on the latest batch. Press OK. The selected Batch is now in the Edit mode the batch can be printed, and reviewed for correctness. Change any of the entries that are incorrect. Click the Close icon (on the toolbar). 5 Verify Beginning Balance Totals General Ledger Reports Tab Trial Balance The Trial Balance report will show all beginning balances. Click on Trial Balance menu option. The G/L Trial Balance Setup box is displayed. Use the drop down arrow next to the Period End Date box, and click on the desired accounting period. 7

Detail to View: ( Not Updated) Sort Report by (click on Fund) Type (click on Selective) then click on the respective fund (i.e. General Fund A) Now press OK and verify that the totals are correct (if not, close window and edit the respective batch containing the errors). Please note that the system will not update an out of balance fund. Save information by clicking the Close icon (on the toolbar).. When prompted click on YES to update the G/L Trial Balance. Enter the period to be updated in the drop down box now displayed (i.e. 1999012 for 12/99). Press OK through the next two boxes. All funds will be updated (closed) provided that they are in balance. Note: the 2000999 shown (for year end adjustments) is not to be used! Beginning Balances for Mid Year Startup If the municipality will start at the beginning of its fiscal year e.g. 2000, the beginning balances will be the Balance Sheet accounts only (after closing the revenue and expenditure to the fund balance at the end of the prior year fiscal year e.g. 1999) These balances will be entered via a journal entry dated December 31 st of the prior fiscal year e.g. 12/31/99 (as previously described). If the municipality will start at the beginning of some period/month during the current fiscal year e.g. April 2000, the beginning balances will be the ending balances from the prior month for all General Ledger accounts e.g. March 2000. Therefore, the journal entry will consist of Year-to-Date balances for all appropriate Asset, Liability, Revenue and Expenditure accounts as of the end of a prior period/month (suggest a trial balance by fund to obtain this information). The Fund Balance however, must be the Fund Balance from the beginning of the current fiscal year e.g. 12/31/99. The date of the Journal Entry will be the last day of the prior month e.g. 3/31/00 8

6 Budgets General Ledger Data Entry Tab Add/Edit Yearly Budget A simple way to enter a lump sum budget amount for operating statement g/l accounts. The respective budget entries are tracked through out the year, and reported on the Operating Statement report. Highlight the Fiscal Year (upper left of screen) by holding down the left mouse button and dragging it across the fiscal period (i.e. 2000001). Change it to the current fiscal year (i.e. January 2004 would be entered as 2004001..the year 2004, followed by the month 001). Click on the GL to Budget button (upper right) if this is the first time entering budgets or new fiscal year). Selecting G/L Accounts & Assigning Budget Amounts Select individual g/l account numbers (click on each one) or select all g/l account numbers (by holding down the left mouse button and dragging it down highlighting all the g/l numbers listed). 9

Click the arrow in the center pointing to the right. All the selected g/l numbers will move to the right container. File close to return to the budget entry screen. Now, simply enter the yearly budget for respective g/l account numbers (under Enter Yearly Budget). The entries may be corrected, changed and/or updated as required by returning to this screen and changing the amount(s). General Ledger Data Entry Tab Add/Edit Budgets Budget entries may also be added individually by g/l account number as follows (useful when doing amendments): Budget numbers are entered for any operating statement account based on entering one total budget amount in the first period of the year, a different amount for each period, or any combination of the two. An equal amount can also be distributed through out the year, automatically (if desired). Enter the appro- Click on Budget. priate G/L account number in the Select a G/L Account box. Press enter. Note: Previously entered budget amounts (prior years for example) will be displayed if they had been entered. Click New (located on toolbar). Enter first & last periods in the Select Beginning and Ending Period drop down boxes, i.e. enter 2000001 (for 1/1/00) as the beginning period, and 2000001 (for 1/1/00) as the ending period. This method will present one period to enter your yearly budget. Click on OK. Click on the Enter an Amount to be added for each period radio button (which will present only the first period). Enter the respective budget amount. Press OK. 10

Enter any notes in the note field next to the budget amount if desired (useful for amendments). Save information by clicking the Close icon (on the toolbar). Budget Amendments Enter the g/l account to be amended on the budget entry screen (press enter). The original budget amount will now be displayed. In the Monthly Budget amount enter the amount of the amendment (i.e. an increase to the budget is entered as a positive number; a decrease to the budget is entered as a negative number). Note: You may re-select the Beginning and Ending Period for the budget, and specify the entire year 2000001 (for 1/1/00) as the beginning period, and 2000012 (for 12/31/00) as the ending period, and note the budget change in the respective period. This procedure will allow you to track the various changes, and still see the original budget. Don t forget to add a note as to why the budget was amended. Press OK. Save information by clicking the Close icon (on the toolbar). Generate an Operating Statement report (Reports Tab) to reflect the budget change. Enhanced will automatically reflect any changes made to the budgets, and report accordingly. 7 Balance Sheet / Operating Statement Reports General Ledger Reports Tab Balance Sheet (then) Operating Statement Generate a Prior Period Balance Sheet and Prior Period Operating Statement to verify account balances. Enter appropriate period end date and click OK. Repeat for desired reports. Note: Enhanced s Balance Sheet report contains two novel displays at the bottom (see next page for display). 11

The Month to Date and Year to Date revenues and expenditures (and resulting fund balance) are displayed, giving a real time review of each fund. 8 Recording Cash Receipts and/or Revenues General Ledger Data Entry Tab Add/Edit Journal Entries The Add/Edit Journal Entries menu step can be used to enter journal entries for Cash Receipt transactions and various transactions and/or adjusting entries that occur during an accounting period (other than those handled by A/P, P/R etc.). When management style reporting is required /or generating invoices are necessary (i.e. selling a product or service), we suggest using Enhanced s Accounts Receivable module. The G/L Session Setting box will be displayed. Click the Add button. Enter the appropriate accounting period date. Enter the appropriate information as you would normally do when booking a receipt (i.e. credit the revenue account and debit cash). Save information by clicking the Close icon. When entering Cash Receipt journal entries record entries in batches, reflecting deposits to the bank cash accounts for the month. An example would be as follows: - credit entries for three revenue accounts then debit entry to cash for the total deposit made to the bank. 12

Note if not using the Disbursements & Receipts module: code cash receipts entries by using CR-1, CR-2 etc. in the Ref # column located on the G/L journal entry screen. This process will be beneficial when using Enhanced s Bank Reconciliation module to reconcile various bank statements. Important Note: You can enter journal entries for multiple funds but cannot enter journal entries for multiple accounting periods into the same batch of journal entries. Also, keep revenue receipts journal entries separate from any other journal entries. Note: there are several different methods to report and track revenue and/or expenditures accounts (other than using the Disbursements & Receipts module). We suggest the Selective Account Detail inquiry (General Ledger module Inquiry Tab). This feature will allow you to report on specific revenue account(s) or any account(s) for that matter for any given time period. Also, try using the report Trial Balance Detail for a Date Range, which allows sorting by Fund G/L number by specific date. 9 Review and Print each Batch If you need to print (and/or revisit) a batch after the initial session click on Journal entries as described above. Click on Edit when the G/L Session Setting box is displayed. Click on the down arrow under (Edit) Batch# and click on the latest batch. Press OK. The selected Batch is now in the Edit mode the batch entries can be printed, and reviewed for correctness. If any of the journal entries need to be changed, make corrections on this screen. Do not change journal entries made in prior periods (zero them out and re-enter the journal entry). Run a Trial Balance Report from General Ledger Reports to verify account totals. If the account balances are correct, close the report and update the trial balance. Update (closing period) (also see Closing an Accounting Period) Updating the g/l at the end of each period is optional (other than the last period of the prior year and the first period of the new year) either of which is done when convenient. Run a Trial Balance report from the General Ledger module for the General Fund and click Yes when asked to update period. The only advantage is that the Trial Balance reports will now be much easier to read. This procedure should be done after all funds journal entries are posted for each period. Tip: you may want to update (close) respective accounting periods to make the Trial Balance report easier to read. We strongly suggest closing each by period (i.e. February then March etc). 13

If transactions need to be made to an updated (closed) period, simply make the transaction as you normally would, then re-update the closed period. Only the new transaction will be updated to the general ledger. Remember to reprint reports. 9A Recurring Journal Entries General Ledger Data Entry Tab Add/Edit Recurring Journal Entries The Recurring Journal Entries feature is used for repeated entries of the same general ledger account numbers during an accounting period. These debits and credits for the g/l account numbers may be revised as often as needed, and posted to the general ledger as often as needed. Select Add/Edit Recurring Journal Entries. Add as many general ledger accounts as desired. Make sure to offset to the appropriate cash account(s) for the various funds. Multiple fund assignments are allowed. The screen will display the last time Standard Entries were posted to the general ledger (top of screen to the left of Standard Entries Were Last Updated to Period). Click on the Actions tab and select Update Recurring Journal Entries. Select the appropriate accounting period and click OK. If additional journal entries are required for the same accounting period, simply click the Reset button prior to clicking OK. 14

10 Reverse Journal Entries (if required) General Ledger Action Tab Reverse Journal Entries This menu step allows reversing of journal entries in accounting periods that have been closed. Corrections for journal entries in periods that have not been closed are done by editing the respective batch of journal entries (see step 9 Review and print each batch on preceding page). When entries are made in one accounting period that need to be reversed in another, the Reverse Journal Entries menu step will reverse the entire batch of entries automatically. Enter date range of batch entries you wish to reverse. Select Batch Number to be reversed by pressing down arrow next to the Select Batch# to Reverse box. Click on batch you want to reverse. Press OK. Click on the Reverse button located on the tool bar. Enter a reference # and date of reversal. Click OK. The entire batch of journal entries will be reversed and the batch number will be reflected as reversed on respective financial statements. 11 Audit List General Ledger Report Tab Audit List As batches of transactions are entered into the Enhanced Accounting system, batch numbers are automatically assigned. Each transaction carries a batch number (including reversals). For audit purposes, it may become desirable or necessary to examine individual transactions. Select Audit List from General Ledger Report Tab. The Audit List will display a list of all batches in the database by batch number sequence. 15

Batch information will always be available for review and reference. Closing a respective accounting period will have no effect on this list. Double clicking anywhere on an individual line or batch # will display in Print Preview all of the detail transactions associated with the selected batch (as shown to the left). These transactions may then be printed at any time. Note: the Audit List can be used to trouble-shoot journal entries which may have incorrect fund assignments or incorrect general ledger accounts. They also can be used to list batches of entries (i.e. Cash Receipts). 12 Closing an Accounting Period Overview: Closing the last period in a given fiscal year will roll the fund accounts (909/522) to zero as shown on the Balance Sheet report (month to date column). The Y-T-D column amounts will still reflect the last period totals. Once the first fiscal period is closed, revenues & appropriations will roll forward (zeroing the totals). New opening balances will then be created based on any debits/credits reflected in that first period. Closing the first month in a new fiscal year will revise the 909 fund balances as noted below. Note: A revised fund balance (909) will be established for the new fiscal year. This new balance will incorporate the prior fiscal year s fund balance, with the YTD net change. For example, we recommend doing a year end close for 2010 at the end of January 2011 (June 2011 for villages). Normal transactions can still be performed during January/June. Do a backup first! If invoices are received during January/June that are dated in December/May, simply input the respective invoices with the December/May dates (invoice date and received date). All such invoices will accrue and be reflected on the Abstract of Vouchers report for December/May. Run Trial Balance, Balance Sheet and Operating Statement Reports for all funds for December 2010 (May 2010 for villages). Check for errors, make any necessary corrections. These reports will be considered your year-end reports. Generate Form 1099 for those suppliers requiring 1099 s (Accounts Payable Action Tab). 16

If not already done generate Form W2 for employees requiring W2 s (Payroll Action Tab). Note: W2 s may be reprinted several times as needed. Generate the desired number of copies at this time (see separate instructions for generating W2 s). Clear Supplier Year to Date amounts (System Utilities System Tab). Run the Bank Reconciliation to reconcile the bank statement to each bank account if utilizing this feature (Bank Reconciliation Action Tab). Re-Run the Trial Balance report for each fund. Run a trail balance for each month in 2001 (if not don so already) beginning with January. When asked Do you want to update the general ledger trail balance now? Press OK. Enter the appropriate month. The month will then be updated (closed). Do this only for months that have not been previously updated (closed). DO NOT CLOSE ANY PERIOD ENDING WITH 999 (i.e. 2010999) Note1: Closing Fund A (first fund) will close all other funds for the respective period provided the other funds are in balance (none will close if one is out of balance). If out of balance, go to System Utilities Actions tab List out of balance batches. Note the batch number(s), go to General Ledger Reports tab and select Audit List. Double click on the respective batch number(s). Note2: It will be necessary to establish a new Accounting Period (i.e. 2011) and input new budget amounts for 2011. Report Locator General Ledger (from drop down list box) Reports Tab The following reports are located in this section: Audit List Sales Journal Purchase Journal Trial Balance Trail Balance Details for a Date Range Chart of Accounts Check Register Balance Sheet Comparative Balance Sheet Operating Statement Annual Fund Report Budget Overview Budget Information Bank Reconciliation uncleared checks Bank Reconciliation 17

Inquiry Tab A user defined, extremely useful report is found in this section: Selective Account Detail sorted by g/l account number (and/or) date range (and/or) accounting period. Will produce a report that list g/l account date description debit/credit source ref.# - batch # - fund accounting period update date. This report can also be sorted by beginning and ending date, as well as individual g/l account number(s). Check Register Chart of Accounts Account Balances General Ledger Account Structure & Overview For those municipalities and non-profits wishing to use a previously established account code structure, we have included a database (MTXACCT8.mdb) based on the general ledger accounts and protocol found in New York States Uniform Systems of Accounts. The basics are as follows: Description G/L low to high # Type Default Accounts 1-2 (c/sale) Trust & Agency Accounts 10-99 (liability) Cash Accounts 200 235 (asset) Accounts Receivable 250-389 (asset) Other Assets 391-480 (asset) Estimated Revenues (budget) 510-511 (asset) Encumbrances 521-522 (liability) Encumbrance Control 522-523 (liability) Appropriated Fund Balance (budget) 598-599 (asset) Accounts Payable 600-601 (liability) Accrued Liabilities 601-602 (liability) Liability Accounts 521 691 (liability) Fund Equity Accounts (balance) 821 911 (fund equity) Est. Appropriations Budget 960-961 (liability) Revenue Control Accounts 980-981 (assets) Revenue Accounts 1000 9999 (other income) Expenditure Accounts 10000-99999 (liability) The most efficient way to enter the account number when inputting to the Enhanced accounting program would be to type the account-fund-object-sub (200.1.0.0) and press enter or click OK. Naturally, drop down boxes with complete descriptions are always available for selection throughout the Enhanced system. 18

Example of key entry: Account Fund Object of Expend. Sub-Account Key Entry 200 1 0 0 200.1. Cash Fund A Personal Services N/A 12204 1 4 0 12204.1.4 Supervisor Fund A Contractor Expense N/A CE Table of Contents Accounting Period Setup. 1 Adding Municipality Name & Profile 2 Add/Edit Account Control Specifications.. 3 Adding New General Ledger Numbers 3 Add/Edit Fund, Obj. of Expenditure & Sub Accounts. 4 Add/Edit General Ledger Account Information. 5 Beginning Balances. 6-8 Budgets.. 8 Setting up Budgets 9 Budget Admendments.. 10 Recording Cash Receipts/Revenues. 12 Recurring Journal Entries.. 14 Reverse Journal Entries... 15 Audit List.. 15 Closing an Accounting Period... 16 Report Locator... 17 General Ledger Account Number Structure.. 18 Enhanced Quick Steps 2011 Enhanced Business Systems, LLC All Rights Reserved Revised 1/11 19