The General Ledger stores information relating to all financial activity for your company. All business transactions are eventually posted to the set of accounts that make up the General Ledger. This set of accounts is called the chart of accounts. You can think of the chart of accounts as holding places for every item you want to keep track of in your business. Information about the chart of accounts is entered through the Maintain Chart of Accounts window. When transactions are posted in Accounts Receivable, Accounts Payable, Inventory, and Payroll, the journals are updated. The journals in turn update the General Ledger. Entries made to the General Journal also update the General Ledger. The interaction between the General Ledger and the other sections in Peachtree is illustrated below:
ENTERING GENERAL LEDGER DEFAULTS
To access the default information window for the General Ledger, select Default Information, General Ledger from the Maintain menu.
Rounding Account Tab
The Rounding Account is an account in your General Ledger used by Peachtree to store rounding differences on Financial Statements. This account can be either a balance sheet account or an income statement account. Typically, the Retained Earnings account is used.
Account Segments Tab
On the Account Segments tab, you can create or change segments for your chart of accounts ID. This will allow you to take full advantage of the masking and filtering features of Peachtree when you print reports and financial statements. You can use this feature for printing reports that are filtered by department, division, account ID, or any other segment you create. When you initially create your company in New Company Setup, Peachtree gives you the opportunity to divide your Account ID into segments, but you can do it here as well. If your chart of accounts is already set up and you change the segment structure, Peachtree will scan your chart of accounts and inform you if any accounts do not fit the new segment structure. You can then print your Chart of Accounts report to identify those accounts.
You can segment your chart of accounts ID by creating descriptions, lengths, and separators for up to five segments.
MODIFYING THE CHART OF ACCOUNTS
If you chose to copy a chart of accounts while using the New Company Setup Wizard, you already have a full list of accounts available. This chart contains all the accounts necessary to run a business. However, since all businesses are different, it may be necessary to add, rename, or delete specific accounts in the chart of accounts.
In the Maintain Chart of Accounts window, you can add and edit existing accounts or delete accounts that have no activity. You can also enter beginning balances for the accounts. The chart of accounts is explained on the following pages. To open the Maintain Chart of Accounts window, select Maintain, Chart of Accounts.