General Ledger Report File Maintenance

General Ledger Report File Maintenance G/L Report File maintenance allows you to add change and/or delete G/L report file records. G/L Report Files are used to format financial statements. Creating Balance Sheets & Income Statements The following are the first steps that you should take to begin creating the report files which will be used in printing your balance sheet and income statements. These steps should be followed after you have established your general ledger chart of accounts. Creating an Income Statement Refer to your chart of accounts and make a list of all income and expense accounts for your first store (we will assume it is store number 001). The list might look like this: account number description 00400 001 000 RETAIL SALES 00401 001 000 COMMERCIAL SALES 00500 001 000 SALARY EXPENSE 00501 001 000 LABOR EXPENSE 00502 001 000 SUPPLIES Next number these accounts in increments of 10, i.e. 10, 20, 30 etc. (each will be a "key" which you will add -- see below) in the order in which they should appear on an income statement. 00010 00400 001 000 RETAIL SALES 00020 00401 001 000 COMMERCIAL SALES 00030 00500 001 000 SALARY EXPENSE 00040 00501 001 000 LABOR EXPENSE 00050 00502 001 000 SUPPLIES Next go to the Maintenance Menu in the General Ledger System. Take Report File Maintenance option. Use the Add Report format function. Enter 001 as the report file name and enter a corresponding description. Next enter each "key" and its corresponding account number into this report file. Do not worry about keying a value into the spacing and suppress fields at this time, just leave the spacing as '1' and the suppress as 'N'. When you have entered all of the income and expense accounts press CMD-3 to exit. Verify that all of your accounts were entered and are in the proper order. Next you need to copy this report file into another file which we will call 'BAX' which will ultimately become the report file for your balance sheet. To do this, take the Add Report Format option. Name the Report File BAX. Take the Exit function on the sequence number screen. Use the Copy Another Report function

Answer the fields on the screen as follows: Copy report format 001 from sequence number 10 thru 900 into report format BAX at sequence number 10. Press enter. You now have two report files, 001 and BAX, which contain the income and expense accounts for store 001. Now back to our report file 001. Determine what headings and subtotals need to be included in order to complete the income statement. <--------------- store name (head) <--------------- ---------- (head) 00010 00400 001 000 RETAIL SALES 00020 00401 001 000 COMMERCIAL SALES <-------------- TOTAL REVENUE (sub) 00030 00500 001 000 SALARY EXPENSE 00040 00501 001 000 LABOR EXPENSE <-------------- PAYROLL EXPENSE (sub) 00050 00502 001 000 SUPPLIES <-------------- TOTAL EXPENSES (sub) <-------------- NET PROFIT (sub) Next determine what level the subtotals need to be, i.e. SUB2, SUB3, SUB4, etc... and assign account numbers to each. The level of a subtotal determines the account balances that are added into it. When a subtotal is encountered in a report file during the printing of an income statement or balance sheet, a total of all account balances prior to the subtotal and up to a previous subtotal of an equal or higher level is accumulated. SUB1 is the lowest subtotal level and SUB9 is the highest. NOTE: SUB1 is reserved for consolidated report files. <--------------- store name (HEAD) <--------------- ---------- (HEAD) 00010 00400 001 000 RETAIL SALES 00020 00401 001 000 COMMERCIAL SALES <--------------- TOTAL REVENUE (SUB3) 00030 00500 001 000 SALARY EXPENSE 00040 00501 001 000 LABOR EXPENSE <------------- PAYROLL EXPENSE (SUB2) 00050 00502 001 000 SUPPLIES <-------------- TOTAL EXPENSES (SUB3) <-------------- NET PROFIT (SUB4)

. In our example we will make Total Revenue a level 2. It will include the balances from the Retail Sales and Commercial Sales accounts.. We will make Payroll Expense a level 1. It will include the balances of the Salary Expense and Labor Expense accounts. Notice that the balances of the accounts up to the previous subtotal (SUB3 - a higher subtotal level) are accumulated.. We will make Total Expenses a level 3. It will include the amount in the Payroll Expense subtotal and the balance of the Supplies account. Notice that the amount in the Total Revenue subtotal is not included because Total Revenue is a SUB3 - the same level as Total Expenses.. We will make Net Profit a level 4. It will include the amounts in the Total Revenue and Total Expenses subtotals. (SUB3's). Next set up an account number for each heading and subtotal. account number description type 00000 000 001 <--------- ---------- (HEAD) 00000 000 002 <--------- TOTAL REVENUE (SUB3) 00000 000 003 <--------- PAYROLL EXPENSE (SUB2) 00000 000 004 <--------- TOTAL EXPENSES (SUB3) 00000 000 005 <--------- NET PROFIT (SUB4) Enter each of these accounts in the chart of accounts with the specified account types (HEAD, SUB2, SUB3 and SUB4) using the G/L ACCOUNT MAINTENANCE option; you may also enter both a long and a short account name and whether this is a debit or credit account.

Next: Assign the appropriate sequence numbers to these accounts so that they will fit into the income statement format. Decide the spacing (the lines to advance) you want after each heading, account and subtotal are printed. Decide which accounts you want to suppress from printing on the report (for example you may want to print only the subtotal and not the accounts that are added into it). 00005 00000 001 000 <----------- store name (HEAD) 00006 00000 000 001 <----------- ---------- (HEAD) -------------> 2 blank lines 00010 00400 001 000 RETAIL SALES 00020 00401 001 000 COMMERCIAL SALES -------------> 1 blank line 00025 00000 000 002 <----------- TOTAL REVENUE (SUB3) -------------> 2 blank lines 00030 00500 001 000 SALARY EXPENSE <----- suppressed 00040 00501 001 000 LABOR EXPENSE <----- suppressed 00045 00000 000 003 <--------- PAYROLL EXPENSE (SUB2) -------------> 1 blank line 00050 00502 001 000 SUPPLIES -------------> 1 blank line 00055 00000 000 004 <---------- TOTAL EXPENSES (SUB3) -------------> 2 blank lines 00056 00000 000 005 <------------- NET PROFIT (SUB4) Enter these new accounts into your report file 001 with the appropriate spacing and suppress values. Change the other account records in the report file to reflect the appropriate spacing and suppress values. Print the report file to verify the data entered. In our example we would do the following to add the new accounts:. We would first enter the new key and account number for our first heading. We will enter a '1' in spacing to indicate that the report prints the heading and then advances to the next line. We will enter an 'N' in suppress to indicate that the heading is NOT to be suppressed.. We would then enter the key and account number for our next heading line with a '3' in spacing (for 2 blank lines after the heading) and an 'N' in suppress.. We would then enter the key and account number for Payroll Expense with a '2' in spacing and an 'N' in suppress.

. We would then enter the key and account number for Total Expenses with a '3' in spacing and an 'N' in suppress.. We would then enter the key and account number for Net Profit with a '1' in spacing and an 'N' in suppress. In our example we would then do the following to change the spacing and suppress values on the other accounts:. We would enter the key for the Commercial Sales account and change its spacing to a '2' (for one blank line).. We would then enter the key for the Salary Expense account and change its suppress to a 'Y' (indicating that we do not want to print this account on the report - we will print only the subtotal for Payroll Expense).. We would then enter the key for the Labor Expense account and change its suppress to a 'Y', also.. We would then enter the key for the Supplies account and change its spacing to a '2'. Now you are ready to run your first income statement. Go to the Report Menu and take option 19 -- Formal Income Statement. Examine the income statement format and amounts. Make any corrections necessary in the report file 001. Our example would look like this: STORE NAME ------------- BALANCE PCT OF BASE SOFTWARE SALES 800.00 00.00 RETAIL SALES 600.00 00.00 TOTAL REVENUE 1400.00 000.00 PAYROLL EXPENSE 800.00 00.00 SUPPLIES 150.00 00.00 TOTAL EXPENSES 950.00 00.00 NET PROFIT 450.00 00.00

Notice that the PCT OF BASE column is all zeros. Our next step in creating our income statement report file is to determine accounts whose balances are to be accumulated and used as the base amount. In our example we will accumulate the sales account balances as our base. By doing this the PCT OF BASE column will then indicate what percent of total sales each item on the report represents. After you have decided which accounts will make up your base you will need to assign keys to these accounts. These accounts must be placed in the report file so that they are before the headings you have specified. In our example we would assign keys to these accounts as follows: 00001 00400 001 000 RETAIL SALES 00002 00401 001 000 COMMERCIAL SALES Notice that the keys will place these accounts before our first heading which had a key of 00005. Now you will need to enter these keys and account numbers into your report file through REPORT FORMAT MAINTENANCE. Note: To designate these accounts as accounts to be accumulated as the base, enter a 'T' in the Supress field. Enter a '1' in the Spacing field. Now you are ready to reprint your income statement. Go to the Financial Report Menu from the Reports Menu and take option -- Formal Income Statement.

Examine the income statement PCT OF BASE amounts. Make any necessary corrections in the report file. Our example would look like this: STORE NAME ------------- BALANCE PCT OF BASE SOFTWARE SALES 800.00 57.14 RETAIL SALES 600.00 42.86 TOTAL REVENUE 1400.00 100.00 PAYROLL EXPENSE 800.00 57.14 SUPPLIES 150.00 10.71 TOTAL EXPENSES 950.00 67.86 NET PROFIT 450.00 32.14 Once this report file is in the desired format, you are then ready to duplicate this report file and create report files for each of your other stores. Creating a Balance Sheet Now you are ready to create your balance sheet report file. We will begin with the report file called BAX which we created in steps 6 and 7. Remember this file contains the income and expense accounts for store 001. Use Option 4 - Report Format Maintenance. Answer the Suppress field for each with a 'Y'. Do not change any other fields. This is done because we do not want to print the individual income and expense accounts on our balance sheet, instead we will print a total for net income. Now you are ready to create a report file which contains the income and expense accounts for all stores. To do this, enter each Division (store) and Department number that you have income and expense accounts for. Begin the keys for the income and expense accounts at 100 leaving room at the beginning of the report file for our balance sheet accounts to be entered. Note: if you have more than 100

balance sheet accounts to enter you will want to make the increment amount larger. Once you have entered all divisions and departments press F3 to exit. Now you will need to refer to your chart of accounts and make a list of all balance sheet accounts that need to appear on your balance sheet. The list might look like this: account number description 00100 001 000 CASH IN BANK (store 1) 00100 002 000 CASH IN BANK (store 2) 00100 099 000 CASH IN BANK (corporate) 00101 001 000 ACCTS RECV 00101 002 000 ACCTS RECV 00101 099 000 ACCTS RECV 00110 001 000 INVENT RUBBER 00110 002 000 INVENT RUBBER 00110 099 000 INVENT RUBBER 00111 001 000 INVENT PARTS 00111 002 000 INVENT PARTS 00111 099 000 INVENT PARTS 00120 001 000 EQUIPMENT 00120 002 000 EQUIPMENT 00120 099 000 EQUIPMENT 00121 001 000 ACCUM DEP EQUP 00121 002 000 ACCUM DEP EQUP 00121 099 000 ACCUM DEP EQUP 00130 001 000 LAND & BLDG 00130 002 000 LAND & BLDG 00130 099 000 LAND & BLDG 00131 001 000 ACCUM DEP L&B 00131 002 000 ACCUM DEP L&B 00131 099 000 ACCUM DEP L&B 00200 001 000 ACCTS PAYABLE 00200 002 000 ACCTS PAYABLE 00200 099 000 ACCTS PAYABLE 00201 001 000 TAXES PAYABLE 00201 001 000 TAXES PAYABLE 00201 001 000 TAXES PAYABLE 00210 001 000 NOTES PAYABLE 00210 002 000 NOTES PAYABLE 00210 099 000 NOTES PAYABLE 00300 099 000 CAPITAL STOCK 00310 001 000 RETAINED EARN 00310 002 000 RETAINED EARN 00310 099 000 RETAINED EARN 00320 099 000 YTD PROFIT

Next number these accounts in increments of 1 in the order in which they should appear on the balance sheet. 00001 00100 001 000 CASH IN BANK (store 1) 00002 00100 002 000 CASH IN BANK (store 2) 00003 00100 099 000 CASH IN BANK (corporate) 00004 00101 001 000 ACCTS RECV 00005 00101 002 000 ACCTS RECV 00006 00101 099 000 ACCTS RECV 00007 00110 001 000 INVENT RUBBER 00008 00110 002 000 INVENT RUBBER 00009 00110 099 000 INVENT RUBBER 00010 00111 001 000 INVENT PARTS 00011 00111 002 000 INVENT PARTS 00012 00111 099 000 INVENT PARTS 00013 00120 001 000 EQUIPMENT 00014 00120 002 000 EQUIPMENT 00015 00120 099 000 EQUIPMENT 00016 00121 001 000 ACCUM DEP EQUP 00017 00121 002 000 ACCUM DEP EQUP 00018 00121 099 000 ACCUM DEP EQUP 00019 00130 001 000 LAND & BLDG 00020 00130 002 000 LAND & BLDG 00021 00130 099 000 LAND & BLDG 00022 00131 001 000 ACCUM DEP L&B 00023 00131 002 000 ACCUM DEP L&B 00024 00131 099 000 ACCUM DEP L&B 00025 00200 001 000 ACCTS PAYABLE 00026 00200 002 000 ACCTS PAYABLE 00027 00200 099 000 ACCTS PAYABLE 00028 00201 001 000 TAXES PAYABLE 00029 00201 002 000 TAXES PAYABLE 00030 00201 099 000 TAXES PAYABLE 00031 00210 001 000 NOTES PAYABLE 00032 00210 002 000 NOTES PAYABLE 00033 00210 099 000 NOTES PAYABLE 00034 00300 099 000 CAPITAL STOCK 00035 00310 001 000 RETAINED EARN 00036 00310 002 000 RETAINED EARN 00037 00310 099 000 RETAINED EARN 99990 00320 099 000 YTD PROFIT (99990 - was chosen so that YTD PROFIT will be placed in the report file after all of the income and expense accts) Then go to Report File Maintenance and enter BAL as the report file name. Enter each "key" and it corresponding account number into the report file. Do not worry about changing the values in the Spacing and Suppress fields at this time. Once you have entered all account numbers press F3 to exit. Verify that all of your balance sheet accounts, along with the income and expense accounts, have been entered into the file and that they are in the proper order.

The next step is to determine what headings and subtotals need to be included in order to complete the balance sheet. <------------ BAL SHEET (head) <------------ --------- (head) <------------ ASSETS (head) <------------ --------- (head) 00010 00100 001 000 CASH IN BANK (store 1) 00020 00100 002 000 CASH IN BANK (store 2) 00030 00100 099 000 CASH IN BANK (corporate) <------------ CASH (sub) 00040 00101 001 000 ACCTS RECV 00050 00101 002 000 ACCTS RECV 00060 00101 099 000 ACCTS RECV <------------ A/R (sub) 00070 00110 001 000 INVENT RUBBER 00080 00110 002 000 INVENT RUBBER 00090 00110 099 000 INVENT RUBBER 00100 00111 001 000 INVENT PARTS 00110 00111 002 000 INVENT PARTS 00120 00111 099 000 INVENT PARTS <------------ INVENTORY (sub) <------------- TOTAL CURR ASSETS (sub) 00130 00120 001 000 EQUIPMENT 00140 00120 002 000 EQUIPMENT 00150 00120 099 000 EQUIPMENT 00160 00121 001 000 ACCUM DEP EQUP 00170 00121 002 000 ACCUM DEP EQUP 00180 00121 099 000 ACCUM DEP EQUP <------------ EQUIPMENT (sub) 00190 00130 001 000 LAND & BLDG 00200 00130 002 000 LAND & BLDG 00210 00130 099 000 LAND & BLDG 00220 00131 001 000 ACCUM DEP L&B 00230 00131 002 000 ACCUM DEP L&B 00240 00131 099 000 ACCUM DEP L&B <---------------- LAND & BLDG (sub) <--------- TOTAL FIXED ASSETS (sub) <------------- TOTAL ASSETS (sub) <------------- dummy subtotal (sub) <------------ LIABILITIES (head) <------------ ----------- (head) 00250 00200 001 000 ACCTS PAYABLE 00260 00200 002 000 ACCTS PAYABLE 00270 00200 099 000 ACCTS PAYABLE <------------ ACCTS PAYABLE (sub) 00280 00201 001 000 TAXES PAYABLE 00290 00201 002 000 TAXES PAYABLE 00300 00201 099 000 TAXES PAYABLE <------------ TAXES PAYABLE (sub) <---------- TOTAL CURR PAYABLE (sub) 00310 00210 001 000 NOTES PAYABLE 00320 00210 002 000 NOTES PAYABLE 00330 00210 099 000 NOTES PAYABLE <------------ NOTES PAYABLE (sub)

<------------ TOTAL LIABL (sub) <------------ EQUITY (head) <------------ --------- (head) 00340 00300 099 000 CAPITAL STOCK <------------ dummy subtotal (sub) 00350 00310 001 000 RETAINED EARN 00360 00310 002 000 RETAINED EARN 00370 00310 099 000 RETAINED EARN <------------ RETAINED EARN (sub)????? (income and expense accounts)????? 00320 099 000 YTD PROFIT <------------ YTD PROFIT (sub) <------------ TOTAL EQUITY (sub) <---------- TOTAL LIABL & EQUITY (sub) NOTE: The "dummy subtotal" (which appears in our example after TOTAL ASSETS) will be used to clear out the subtotal level used by the TOTAL LIABLILITIES AND EQUITY subtotal so that the assets will not be added into that subtotal. NOTE: The "dummy subtotal" (which appears in our example after CAPITAL STOCK) will be used to clear out the subtotal level used by the RETAINED EARNINGS subtotal so that capital stock will not be added into that subtotal. Next determine what level the subtotals need to be and assign account numbers to each of the headings and subtotals. account number description type 00000 000 006 <--------- BAL SHEET (HEAD) 00000 000 001 <--------- ---------- (HEAD) 00000 000 007 <--------- ASSETS (HEAD) 00000 000 001 <--------- ---------- (HEAD) 00000 000 008 <--------- CASH (SUB2) 00000 000 009 <--------- A/R (SUB2) 00000 000 010 <--------- INVENTORY (SUB2) 00000 000 011 <--------- TOTAL CURR ASSETS (SUB4) 00000 000 012 <--------- EQUIPMENT (SUB2) 00000 000 013 <--------- LAND & BLDG (SUB2) 00000 000 014 <--------- TOTAL FIXED ASSETS (SUB4) 00000 000 015 <--------- TOTAL ASSETS (SUB5) 00000 000 995 <--------- DUMMY SUB5 (SUB6) 00000 000 016 <--------- LIABILITIES (HEAD) 00000 000 001 <--------- ---------- (HEAD) 00000 000 017 <--------- A/P (SUB2) 00000 000 018 <--------- TAXES PAYABLE (SUB2) 00000 000 019 <--------- TOTAL CURR PAYABLE (SUB4) 00000 000 020 <--------- NOTES PAYABLE (SUB2) 00000 000 021 <--------- TOTAL LIABL (SUB5) 00000 000 022 <--------- EQUITY (HEAD) 00000 000 001 <--------- ---------- (HEAD) 00000 000 023 <--------- DUMMY SUB1 (SUB2) 00000 000 024 <--------- RETAINED EARN (SUB2)

00000 000 025 <--------- YTD PROFIT (SUB2) 00000 000 026 <--------- TOTAL EQUITY (SUB5) 00000 000 027 <--------- TOTAL LIABL&EQUITY (SUB6) Enter each of these accounts in the chart of accounts with the specified account types using the G/L ACCOUNT MAINTENANCE option. Next: Assign the appropriate sequence numbers to these accounts so that they will fit into the balance sheet format. Decide the spacing (the lines to advance) you want after each heading, account and subtotal are printed. Decide which accounts you want to suppress from printing on the report (for example you may want to print only the subtotal and not the accounts that are added into it). Enter these new accounts into your report file BAL with the appropriate spacing and suppress values. Change the existing accounts in the report file to reflect the appropriate spacing and suppress values. Print the report file to verify the data entered. Now you are ready to run your first balance sheet. Go to the Report Menu and take option 4 -- Formal Balance Sheet.

Examine the balance sheet format and amounts. Make any necessary corrections to the report file BAL. Our example would look like this: Beginning Of Year Year To Date Balance BAL SHEET ----------- ASSETS -------- CASH 10,600.00 10,000.00 20,600.00 A/R 7,000.00 3,000.00 10,000.00 INVENTORY 50,000.00 0.00 50,000.00 TOTAL CURRENT ASSETS 67,600.00 13,000.00 80,600.00 EQUIPMENT 75,000.00 15,000.00-60,000.00 LAND & BLDG 400,000.00 20,000.00-380,000.00 TOTAL FIXED ASSETS 475,000.00 35,000.00-440,000.00 TOTAL ASSETS 542,600.00 22,000.00-520,600.00 LIABILITIES ------------- A/P 40,000.00 20,000.00-20,000.00 TAXES PAYABLE 10,000.00 5,000.00 15,000.00 TOTAL CURRENT PAYABLE 50,000.00 15,000,00-35,000.00 NOTES PAYABLE 50,000.00 20,000.00-30,000.00 TOTAL LIABILITIES 100,000.00 35,000.00-65,000.00 EQUITY -------- CAPITAL STOCK 400,000.00 0.00 400,000.00 RETAINED EARNINGS 42,600.00 0.00 42,600.00 YTD PROFIT 0.00 13,000.00 13,000.00 TOTAL EQUITY 442,600.00 13,000.00 455,600.00 TOTAL LIAB & EQUITY 542,600.00 22,000.00-520,600.00