Update General Ledger

The Update General Ledger process contains the routine for updating vouchers from the hold table to the general ledger. All vouchers created in the various modules in IFS Applications are collected in the hold table in IFS/Accounting Rules before they are updated to the general ledger.

When the update routine is started, default values for the selection criteria is displayed, e.g. the accounting periods. The selection criteria can be modified by the user, if appropriate. The user can also select a number of individual vouchers from the hold table. The updating routine can also be run in batch.

After the update routine has been performed it is necessary to check that all vouchers have passed the checks performed by the updating routine. If some vouchers do not pass the checks done by the updating routine, they are error-marked and returned to the hold table. It is also possible to print a summarized update journal or a detailed update journal for all vouchers that have passed the checks. The update journal can be re-printed via IFS/Info Service.

Before the update routine is started, check the following basic data requirements:

Checks Performed by the Updating Routine

A number of different checks are carried out in the updating routine. The following checks are carried out on the entire voucher, and any error text is placed in the voucher header:

The checks listed below are some that are carried out on the voucher rows, and any error text is placed in the voucher rows:

Automatic Processing Stages

During updating, each voucher row can undergo one or more automatic processing stages. Each voucher row is marked with the stages completed. This information can be viewed in the detailed update journal, and also in GL Voucher Rows  Analysis or GL Voucher Details Analysis. The following automatic processing stages take place in the updating routine.

Totaled Transactions

The Voucher Summary is used to specify whether voucher rows within a voucher with the same code string are to be totaled. The code string, currency code, exchange rate, partner-ID, reference series, reference number, transaction ID, and correction must all be the same. The voucher rows resulting from such an activity are marked Yes in the Summarized field in GL Voucher Details Analysis.

Automatic Posting

An automatic posting is implemented on the basis of the processing rules entered in GL Automatic Posting Rule. The transactions created are added to the voucher with a transaction code indicating how they were created. Each transaction created is also marked with the processing rule used to create the transaction, the number of the row where the transaction originated, and the sequence number of the processing rule. If there is an imbalance in the voucher and this balance is greater than the maximum amount stated in the Accepted Difference field in the GL Update Parameters, the voucher is returned to the hold table with an error status. If the difference is less than the maximum amount, the difference is posted on the difference account specified for the posting type GP1, Difference Account, in Posting Control.

Project Capitalization

Projects can be specified in IFS/General Ledger and in IFS Engineering. To use options such as project accounting, a code part function for the project accounting must be defined in Define Code String. If a voucher contains cost postings or revenue postings for a project where costs and postings are to be capitalized, i.e., projects of Capitalized exp. or Capitalize rev./exp. type, repostings take place to the capitalization accounts entered in Posting Control. The transactions are added to the original voucher and marked with a transaction code that indicates how they were created. The Project Accounting field in GL Voucher Details Analysis is marked with Yes.

Currency Balance Accounting

A code part can be used to store currency codes. This means that the currency is stored at balance level in the general ledger, making it possible to retrieve a balance in your accounting currency and the corresponding value in the required currency. To use options such as currency accounting, a code part function for the currency balance accounting must be defined in Define Code String. Enter the currencies the company is using in the code part in Code Part Values. Specify also the accounts to be used for currency accounting by marking the Currency Balance box in Account.

If an account is used for foreign exchange accounting, the update compiles the transaction’s foreign amounts to a foreign amount in the balance table. The transaction’s currency code is then placed in the code part to be used for foreign exchange accounting in both the balance table and in the transaction in the general ledger. The transactions that update currency in the balance table are marked Yes in the Currency Accounting field in GL Voucher Details Analysis.

Fixed Assets Accounting

If IFS/Fixed Assets is installed, then one code part is used to store the identity of the fixed asset. At acquisition of a fixed asset, a manual voucher or a supplier invoice is entered, with a posting to the acquisition account linked to IFS/Fixed Assets. The identity of the object must be specified in the code part for the object. The voucher is placed in the hold table. The updating routine then updates the general ledger and the object's acquisition value in IFS/Fixed Assets.

Internal Elimination

If an internal elimination structure is specified and used in the company, the updating routine marks the corresponding transactions with elimination codes. When following up the accounting, the elimination codes provide the option to select transactions on specific levels in a structure. Transactions can be internal, such as trade between different cost centers, and the structure can mirror the company's organization. An internal elimination structure is built in Internal Elimination Structure. A code part function for the internal elimination must be defined in Define Code String.

The updating routine starts from the value in the code part for the own part and the code part for the counter part. Then the updating routine looks for the common nodes in the structure. The common node having the highest value on the elimination code is the one lowest in the hierarchy. The code part for the elimination code is updated with the value entered for this structure node. There are two cases:

  1. The transaction has valid values in the code parts for own part and counter part. The code part values for the own part and the counter part are specified in the structure with a valid time that includes the voucher date. The code part for the elimination code is updated with the elimination code according to the structure. The transaction is marked with a Y in the Internal Elimination field in GL Voucher Details Analysis
  2. The transaction has valid values in the code parts for own part and counter part. The code part value for the own part can be found in the structure, but the code part value for counter part cannot be found in the structure. In this case, the transaction is defined as external, and the code part for the elimination code is updated with the external elimination code according to the structure.

Periodic Allocation

The updating routine creates a periodic allocation voucher for the voucher rows containing periodic allocation information. Periodic allocation information is entered for manual voucher in Voucher Entry. One voucher is created for each period. The voucher type is the one belonging to the voucher group X, Periodic Allocation Voucher. Counter posting is created for the account specified in Posting Control for the posting type, GP2 Accrued cost/revenue.

Transaction Codes

Each voucher row is assigned a transaction code. Some transaction codes are assigned in the function where the voucher row is created. Other transaction codes are assigned by the updating routine. The transaction code displays how the transaction originated and can be viewed in query windows and reports. Transactions can be marked with one of the following codes:

Error Texts

If a voucher has not passed the checks in the updating routine, it is marked with an error text that explains clearly the type of error that occurred. The errors occur in either the voucher header or the voucher rows. The user can view the error text in Voucher Entry or in the query windows in IFS/Accounting Rules.