Specifications

Computer Tutorial 3 Lesson 1

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The direct-entry method enables you to enter the transactions directly, which reflects the

results of the transactions immediately. The disadvantage, however, is that control over

transaction entry is significantly weaker than with the batch method because there is no

means to verify each transaction entry before it is reflected in the general ledger. Errors are

also more difficult to correct once they are discovered.

Whichever method is used, a computerized accounting system is designed to keep the general

ledger continuously in balance by only allowing transactions to be entered or posted if they

are in balance. That is, the debit and credit totals of each transaction must be equal before the

program allows them to be posted. A manual accounting system has no comparable

safeguard.

TOPIC 1.6

Introducing Accpac General Ledger

Sage Accpac ERP General Ledger is a core component of Sage Accpac, a series of integrated

accounting modules from Sage Accpac ERP. Accpac is a comprehensive accounting and

business management program containing modules that deal with inventory, purchasing,

sales, payroll, and accounts receivable. The CGA Educational version of Accpac is limited to

the General Ledger module.

Accpac General Ledger provides many useful features for the accountant and for senior

management. The program has many built-in controls that prevent a user from introducing

errors that could damage the general ledger, such as deleting accounts with existing balances

or posting transactions to non-existent accounts. Remember, though, that these safeguards do

not preclude a user from making accounting mistakes, such as entering an amount to an

inappropriate (but existing) account.

Accpac General Ledger uses a variety of methods for transaction entry. In the CGA program

of professional studies, batch entry will largely be used. Transactions can be entered as

single-use, clearing, reversing, or recurring entries. When posting transactions, you have the

option of posting transactions individually, in a batch, in selected batches in a given module,

or you can post all batches within all modules in the accounting system. You can produce a

trial balance at any time, with only a few mouse clicks. If changes are required after

transactions have been posted, adjusting entries must be made to effect the changes. This

procedure ensures a reliable audit trail for management and auditors.

Accpac can handle a fiscal year with 12 or 13 fiscal periods. The general ledger for this

tutorial has been set up for a fiscal year with 12 fiscal periods. Other options are available so

that separate periods can be set up for year-end adjustments and for closing the books at the

end of the fiscal year.

Each account can hold the current balance, all the debits and credits to the account in each

fiscal period, historical data, and budget data. The program stores a debit entry or balance as a

positive number, and a credit entry or balance as a negative number.

A comprehensive set of reports can be printed with the program. Examples include a trial

balance, statement of cash flow, and statement of retained earnings reports, all of which can

be printed in a variety of ways to provide up-to-date analysis of your financial activity. You

can print a list to verify the accuracy of a transaction. This allows transactions to be verified

and approved prior to posting, therefore forming a critical part of a formal audit trail.