General Ledger.

What you will need

To complete this setup you will need the following information:

What you need to do

To set up the General Ledger, you should complete the following tasks:

1. Review general company information.

The Company Information window contains much of the information you entered during the Setup Interview. You may want to review this information.

The entries in the Current Financial Year, Last Month in Financial Year, Conversion Month and Accounting Periods per Year fields in this window were entered when you created your company's data file. These entries can't be changed in this window.

2. Create/modify your chart of accounts.

If you need to make changes to the starter chart of accounts you selected in the M.YO.B. Setup Interview, use the Chart of Accounts window to create and modify your chart of accounts. Even if you don't think you need to make any changes, it might be a good idea to review the accounts you've got anyway, just to be sure you're comfortable with your chart of accounts.

3. Assign opening balances to each account in your chart of accounts.

To do this, use the Account Opening Balances window, which is opened using the Balances command.

The total balance assigned to your asset accounts should equal the total balance of your liability and equity accounts. You'll use the Account Opening Balances window to make this happen.

If you are planning on using M.YO.B. Inventory, it's best if you don't enter the opening balance for your Inventory Asset account(s), even if it means your accounts will be out of balance at this stage. This will be corrected when you set up Inventory.

Exercise

Follow the steps below. Enter the required information from your data sheet.

Go to the Setup Menu and select the Set Up MYOB command.

From the sub menu choose General Ledger .

A list of things to do will appear, with a white arrow next to each item. Click on the white arrow to display the relevant screen to complete each item. Fill in the fields. Click on OK or the Close button to return to the list.

Click on the white arrow next to Company Information . Review this information. Click on OK .

Click on the white arrow after Enter Opening Balances . The accounts list will appear. Change the accounts as specified in your data sheet. To remove an account, click on the white arrow next to the account (or select the account and click on the edit button). Select Delete account from the pull down Edit menu at the top of the screen. To change the details of an account, click on the white arrow next to the account. Change the appropriate fields. Click on OK to close the window.

To create a new account, click on the New button. Fill in the fields shown. Click on OK .

Click on Close to return to the grey Setup window.

Click on the white arrow before Enter Opening Balances . Enter the opening balances from the Trial Balance in your data sheet. Do not enter the opening balance for inventory as you will be using the inventory command center. MYOB will calculate the opening balances when you set up inventory.

As your conversion month is the first month of the financial year, you will not be able to enter any expense or income opening balances as these should all be zero. Your previous year's earnings (profit or loss) are entered into your retained earnings account. The previous month's expense and income account balances can be entered as historical accounts.

MYOB automatically creates an account to keep track of the current year's profit or loss. This account is not shown in the list of accounts. When you have entered all your account balances, the amount in the Amount left to be allocated field at the bottom of the window should be equal to your inventory account. An account called Historical Balancing will be created to make sure the accounts balance.

Click on OK .

 

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