FrontAccounting/C2/Banking-and-General-Ledger/English

Title of the Script : Banking and General Ledger in FrontAccounting

Author: Sheetal Prabhu

Keywords: GL Classes, Groups, Accounts, Journal Entry, Balance sheet, void a transaction

Visual Cue	Narration
Slide Number 1 Title Slide	Welcome to this tutorial on, Banking and General Ledger in Front Accounting
Slide Number 2a Learning Objectives In this tutorial,we will learn to create General Ledger Classes General Ledger Groups General Ledger Accounts	In this tutorial,we will learn to create General Ledger Classes General Ledger Groups General Ledger Accounts
Slide Number 2b Learning Objectives Also, we will learn to : Pass a Journal Entry See the reflection in Balance sheet Void a transaction	Also, we will learn to : Pass a Journal Entry See the reflection in Balance sheet and How to void a transaction
Slide Number 3 System Requirements Ubuntu Linux OS version 14.04 FrontAccounting version 2.3.24	To record this tutorial, I am using Ubuntu Linux OS version 14.04 FrontAccounting version 2.3.24
Slide Number 4 Pre -requisites To practise this tutorial, you must be familiar with: Principles of Book-keeping Set up an Organisation/Company in FrontAccounting If not, for relevant FrontAccounting tutorials please visit http://spoken-tutorial.org	To practise this tutorial, you must be familiar with: Principles of Book-keeping Set-up of an Organisation/Company in FrontAccounting If not, for relevant FrontAccounting tutorials please visit our website.
Narration	Let us start by opening the FrontAccounting interface.
Click on browser >>localhost/account >> Press Enter	Click on the browser, type localhost/account and press Enter.
Narration	The login page appears. Recall that during installation, we had created admin user.
Enter Username = admin and Password = spoken>> Click on login	So, here type the username as admin and the password. Then click on Login button.
Point to>> Frontaccounting >> page Click>> Banking and Ledger>> tab	The FrontAccounting window opens. Click on Banking and General Ledger tab.
Point to options of Banking and General Ledger	We can see various options under this tab, such as: Payments Deposits Journal Entry etc.
Narration	Before we start with any transaction, we need to set the Charts of Accounts.
Slide 5 Charts of Accounts	* The Charts of Accounts within FrontAccounting is defined by Type, Class, Group and Account. All transactions are charged to an Account, Group, Classes These are used to group transactions for reporting purposes.
Narration	Switch back to FrontAccounting interface.
Point to>> Maintenance bar>> GL Accounts GL Account Groups GL Account Classes	We can see the options under Maintenance bar as: GL Accounts GL Account Groups GL Account Classes in this tab.
Point to the >> Gl Account, Gl Groups and GL Account Classes>>	We need to set these options.
Slide 6 Why GL Accounts, Groups and Class? Account belongs to a Group and Group belongs to Class It depends upon how to present the Balance Sheet and Profit and Loss A/c statements	In FrontAccounting, Account belongs to a Group and Group belongs to Class It depends upon how to present the Balance Sheet and Profit and Loss A/c statements
Point to>> GL Account Classes>>	Here, GL Accounts Classes are the initial stage that need to be set first.
Click>> GL Accounts Classes>>	Let us see the GL Accounts Classes.
Click>> GL Account Classes >> Point to the Class ID and the Class type	Here, by default the Class Type and Class Name have been defined as: Assets Liabilities Income Expense Also, you can see the Class ID is set for each Class Type.
Narration	You will need to set this class before setting the Account Groups. I will demonstrate how to do this.
Click >>Class ID field >> Type 5	Here, you need to add a new Class ID that is not already there. So, I will type 5 as the new Class ID.
Click>> Class Name field>>	In the Class Name field, type a new Class Name. I will type the name as Equity.
Click>> Class Type field >> Show the dropdown box and the options Narration	Click on the Class Type drop down box. You can see the default list: Assets Liabilities Equity Income Cost of Goods Sold Expense FrontAccounting follows this Class Type to present in the Balance Sheet.
Select the Class type as Equity	Select the Class Type as Equity.
Click>> Add new button>> Point to the message which appears	Click on Add new button. We can see a message appears and it says- 'New account class has been added'
Point to the Equity status >> GL Account Classes Point >> Class type drop down box>> Point >> the Panel where the Equity shows in the third level>>	Here, you can see the new Class “Equity” has been added to the third row. This is because, in the default Class Type, Equity is on the third hierarchy level. So, whenever you add a new Class, it takes the default place of the Class Type.
Point to Banking and General Ledger tab	Now, let us see how to add GL Groups. Go to the Banking and General Ledger tab.
Click>> GL Groups >>	Click on the GL Account Groups.
Point to the >> GL Group Name List >> Point to the >>Group ID list>>	We can see the default Group Name, which shows GL Account Groups under the Class. You can also see the Group ID, set according to the Class.
Narration	A unique Class ID has to be added to each Group Name.
Point to the >>Group ID list>>	In the Group ID field, I will type the new Group ID as 12.
Click>> Group Name field>>	In the Name field, I will type Fixed Assets as the Group Name.
Click>> Subgroup of dropdown menu>> Point>> Subgroup of field>>	Here, I will keep this field as None. This is because, the Group Name “Fixed Assets” does not belong to any subgroup that is already available.
Click>> Class dropdown box >> select Assets	Click on the Class drop down box. According to the Charts of Accounts, Fixed Assets comes under the class of Assets. Here, I will select Assets as the Class.
Click>> Add New button >> Point to the message which appears	To save these changes, click on Add new button. We can see an error message that says - “This account Group ID is already in use”.
Point to the existing code 12 Narration	This means that the Account Group ID 12 is repeated. Now, let us enter another number which is unique.
Type>> Group ID 13>> Click>> Add New button>>	Let me type the Group ID as 13. Click on Add new button.
Point to the>> message bar>>	This time we can see a message that says - “New account type has been added.”
Point to the newly added Group Name	The new Group Name is added randomly within the class “Assets”.
Narration	Likewise, you can add your own Group Name. <<PAUSE>>
Point to Banking and General Ledger tab	Now, let us see how to add GL Accounts. Click on the Banking and General Ledger tab.
Click>>GL Accounts >>	Let us click on GL Accounts.
Click>> Account Code field>> Point to the Account Code field	Here also, you need to type a unique code. In the Account Code field, I will type 1100 as the code.
Click>> Account Name field>>	Click on the Account Name field. I will type the Account Name as “Land and Building”. You can give any name of your choice.
Click >> Account Group field>> Select the Fixed Assets Account Group>> Narration	In the Account Group drop down box, I will select the Account Group as Fixed Assets. The Account Name, Land & Building has to come under the Group Fixed Assets as per the Charts of Accounts.
Click>> Account status field >>	So here, click on the Account status drop down menu. Select the status as Active.
Click>> Add Account button >> Narration	Then click on Add Account button. We can see the message - ‘New account has been added’.
Click>>account drop down box>> Narration	Now, click on the New account dropdown box. You can see the newly added Account here.
Point to the account code	Each organisation will have their own set of account codes, as shown here.
Narration	Likewise, by following the steps demonstrated above, you can create your own GL Account.
Narration	Pause the tutorial here.
Slide 7: Assignment 1 Create a GLAccount Group as Investment Create GLAccount as Bonds, Debentures Save the changes	And do this assignment. Create a GL Account Group as Investment Create 2 separate GL Accounts named Bonds and Debentures Save the changes
Narration	Now, we have set up the Charts of Accounts for our own Company.
Slide -8 Commenced business with a Capital Rs 50,000 The Entry is Cash A/c Dr. 50,000 To Capital A/c 50,000 (Being Capital introduced in business)	Next, let us pass a Journal Entry. Commenced business with a capital of Rs. 50,000 The Entry is Cash A/c Dr. 50,000 To Capital A/c 50,000 (Being Capital introduced in the business)
Point to Banking and General Ledger tab	Click on the Banking and General Ledger tab.
Click>> Journal Entry option >>	And then click on Journal Entry.
Point>> Date field>> Point to the current date	Next, click on the Calendar icon of Date field. You can see that the default date is set as today.
Point to Reference field	We can see the reference number for the transaction here.
Click>>Account Description drop down box>> Select the Account Description >>	Click on the Account Description drop down box. Here, I will select the option Cash.
Click>> Debit textbox>>	Then, click on the Debit text box and type the amount as 50,000.
Click on the Add Item button	To save the Debit entry, click on the Add Item button.
Point to the Account Description box >> Select Capital	Again, click on the Account Description drop down box. This time, I will select the option Capital.
Click>> Credit textbox>>	Then, click on the Credit textbox and type the amount as 50,000.
Click on the Add Item button>>	To save the Credit entry, click on the Add item button.
Click>> Memo field>>	Now, click on the Memo field, for the narration of this Journal Entry.
Point to the Memo field >>	Here, type the text - Being capital introduced in the business.
Click>> Process Journal Entry button>>	Then click on the Process Journal Entry button to save the entry.
Point to the green colour message bar>>	You can see the message at the top, that appears in green - “Journal Entry has been entered # 2”
Point to the options >>	You can also see the options: View this Journal Entry Enter New Journal Entry Add an Attachment and Back
Click>>View this Journal Entry Narration	Let us explore View this Journal Entry option by clicking on it. Immediately, a new popup window opens showing the current General Ledger Transaction details.
Point to Print and Close option Narration	We can also see an option here - Print and Close. By choosing this option, we get a print-out of this transaction for our future reference.
Point to Close option	This option here, at the bottom right is to close this window. I will choose this and close this window.
Click>>Enter New Journal Entry New window opens for the Journal Entry	Now, click on the Enter New Journal Entry option. We can see a new page opens immediately for the next new transaction.
Click>> Back option>>	Click on the Back option to go back.
Click>>Add an Attachment	Now, click on the Add an Attachment option.
Point to the menu bar>> Attachment	We can see the fields: Transaction Description and Attached file Attached file option is used to attach any documents related to the Journal entry which is passed.
Narration	Let me attach a sample voucher which I have already created and stored on my computer. For your convenience, this file has been provided in the Code file link below this video. Pls click on the link and save the file on your computer.
Click on the Attached file text box	Click on the Browse button and locate the folder in which the document is stored.
Point to the Sample-Voucher file	I'll select the Sample-Voucher.odt file from my Desktop folder.
Point to the Browse text box and the file attachment	You can see the file attachment here now.
Show the message which appears in green Point to the message bar	Then click on the Add new button. A message appears that says: Attachment has been inserted.
Narration	Also, you can see that the uploaded file has been added to the table. <<PAUSE>>
Narration	Now, let us see the reflection of this Journal Entry in the Balance Sheet.
Point to Banking and General Ledger tab	To do so, click on the Banking and General Ledger tab.
Click>> Balance sheet Drilldown >>	Then click on the Balance Sheet Drilldown option.
Point to Current Assets	We can see the transaction is reflected here. Current Assets shows balance of 50,000 (fifty thousand).
Point to Liabilities	The transaction is also reflected in Liabilities by showing the balance of 50000 (fifty thousand).
Point to the Assets and Liabilities Narration	Since we made only one Journal Entry, we see only one entry in the displayed list. In the future, when we have many more journal entries, the displayed list would be longer. <<PAUSE>>
Narration	Let us now see how to Void a transaction.
Click>> Setup tab>> Click>> Void a transaction>>	Click on the Setup tab, and then on the option Void a transaction under the Maintenance bar.
Narration Point to the reference number field>>	This option is used to delete/remove an entry. We can see the reference number, which shows the entry.
Point to the select icon	Click on the Select icon.
Point to the entry shown in the field	On selecting the icon, the transaction number and voiding date appears.
Click >> Void Transaction button>>	Click on the Void Transaction button.
Point to message bar	A message appears that says- Are you sure you want to void this transaction? This action cannot be undone.
Click>> Proceed button>>	I’ll click on the Proceed button. Immediately another message appears and says- Selected transaction has been voided. That’s how we void a transaction, whenever required.
Narration	Let us summarize.
Slide 9 a Summary In this tutorial, we have learnt to create General Ledger Classes General Ledger Groups General Ledger Accounts	In this tutorial, we have learnt to create General Ledger Classes General Ledger Groups General Ledger Accounts
Slide 9 b Summary Also, we have learnt to : Pass a Journal Entry See the reflection in Balance sheet Void a transaction	Also, we have learnt to : Pass a Journal Entry See the reflection in Balance sheet and How to void a transaction
Slide 10 Assignment 2 Pass a Journal Entry Goods Purchased for Rs 50,000 See the reflection in Balance Sheet	As an Assignment Pass a Journal Entry Goods Purchased for Rs 50,000 See the reflection in the Balance Sheet
Slide Number 11 Acknowledgement This video summarizes the Spoken Tutorial project If you do not have good bandwidth, you can download and watch it.	Acknowledgement This video summarizes the Spoken Tutorial project. Please download and watch it.
Slide 12	We conduct workshops using Spoken Tutorials and give Certificates. For more information, please contact us.
Slide 13	The Spoken Tutorial Project is funded by NMEICT, MHRD Government of India. This tutorial has been contributed by Sheetal Prabhu from IIT Bombay. Thank you for joining.

Contributors and Content Editors

Nancyvarkey, Nirmala Venkat, Sheetal