Create and set up a new ledger
- Rachel Wegener
- Tamzin Stone
The following steps cover how to create and set up a new ledger where there are no opening balances to be brought in, e.g. a new project has commenced. They need to be done by a user with the System Administrator role.
Steps to complete
Step 1 - Create the Entity and Ledger
Create the Entity (if required)
If an new Entity needs creating for the ledger to operate in, follow these steps. Otherwise, start at the Create the Ledger step below.
Go to System and click Administration.
In the entity tree, click on the entity that you wish to add an entity below. E.g. click on ADRA South Pacific to add ADRA Samoa.
Click on the Add Entity button.
Complete all the fields, then click Save.
Type - selecting the entity type determines the default chart of accounts that ledgers for this entity will have. Ensure that the right type is chosen as this setting should not be changed once entries have been processed in the ledger/s.
The entity has now been created and you will be able to see the chart of accounts it has.
Create the Ledger
Go to System and click on Administration.
In the entity tree, click on the entity that you wish to add a ledger to. E.g. click on ADRA Samoa to add the ADRA Samoa ledger.
Click the Add Ledger button.
Complete all the fields on the Ledger Definition screen, then click Save. Selected fields are explained below:
Ledger Code - this is a short name for the ledger, which will be used as part of the file name when exporting data.
Ledger Type - this will default to the type selected in the entity, but can be changed if required.
Multi Currency - tick this box to allow transactions to be entered in multiple currencies. Choose the Default Rate Type if multi-currency is enabled.
Tax - tick this box to allow tax to be calculated on transactions. Also complete the Tax Name field so that the correct tax codes will be available.
Authorise Transactions - tick this box to require transactions to be authorised by an Advanced user or System Administrator user before being posted.
Allow Data Entry - tick this box to allow transactions to be entered in the ledger.
Cheque Entry - tick this box to allow cheque transactions to be entered in the ledger.
Receipt Entry - tick this box to allow receipt transactions to be entered in the ledger.
Paperless - this checkbox enables the paperless authorisation workflow. This means that journal listings are not required to be printed; rather, they are automatically saved as an attachment in the journal. The person authorising views the journal and backing on the screen, and when they approve the journal, it is also posted. Contact Service Desk if you would like this feature activated.
Allow Standard User Reversals - tick this box to allow users with the Standard role to use the reversal function. If it is left unticked, only users with the Advanced and System Administrator role can use this function.
Batch Receipt Processing - tick this box to allow receipts to be processed in batches instead of individually. Best for processing large volumes of receipts.
Print File Copy - if selected, two copies of the receipt will be printed – ‘Payer Copy’ and ‘File Copy’.
Bank Deposit Copies - enter the number of Bank Deposit slips to be printed.
Current Period - come back to Ledger Definition to select this once the Financial Year and Periods have been set up.
Open Transaction Date Range - enter the dates that transactions are allowed to be processed with. Requires regular updating by an Advanced / System Administrator user.
Once Save has been clicked, you will be taken to the Periods tab.
Select the Financial Years Start month and the Financial Year from the drop-down lists.
Click Save.
Click on the Ledger Definition tab and choose the Current Period (most likely the first period of the financial year).
The ledger has now been created. The next steps are to set up the chart of accounts, and create users / give users access to the new ledger.
Step 2 - Set up the chart of accounts
Note: this step assumes that no changes to the global chart of accounts are required.
Activate required accounts
Go to System and click Administration.
Select the relevant ledger.
Tick the Show Inactive Accounts box to display the inactive accounts.
Select the first account to be made active, and un-tick the Prohibit Posting box.
Click Update.
Repeat steps 3-6 for relevant accounts.
Create sub-accounts
Sub-accounts can be created in each ledger for the following categories: Allocated Equity, Appropriation, Asset Location, Church, Department, Entity, Location, Not Analysed, Project, Supplier, Student, Subject, Sustentee, Trust Fund, Who. A coding convention should be determined for each category used.
Sub-accounts can be created individually in GL2 as explained below, or in bulk using the Excel account import template.
Go to System and click Administration.
Select the relevant ledger.
Tick the Show Sub-Accounts Only box.
Click on the relevant category, then click Add Sub-Account.
Complete the relevant fields, then click Save.
Code - 10 characters max.
Name - 50 characters max.
Address - where relevant.
Email - where relevant. May be used in the future, e.g. for emailing statements.
Analysis Category - if not already selected, choose the correct category.
Allow Posting - Select the earliest period that posting will be allowed from. The To field can be left blank so that posting can occur indefinitely.
Currency - select the currency of the sub-account (if using multi-currency)
Repeat steps 3-5 to create all sub-accounts.
Assign sub-accounts
Where accounts have the setting of Sub-Account Required = Required, but no Object Analysis assigned (e.g. Department, Project or Who), sub-accounts must be assigned to these accounts. Sub-accounts may also be assigned where Sub-Account Required = Optional.
Sub-accounts can be assigned individually as explained below, or in bulk using the Excel account import template
Go to System and click Administration.
Select the relevant ledger.
Select an account to have sub-accounts assigned.
Click on the Assign Sub-Accounts tab.
From the Sub-Accounts Available list, highlight one or more sub-accounts (use Shift and/or Ctrl to highlight multiple accounts) and click on the arrow to move them to the Sub-Accounts Assigned field.
Repeat steps 3-5 as required.
Step 3 - Link the Special Accounts
Some functions in GL2 involve the system creating automatic journals. Special Accounts is where the accounts required to be used in these journals are specified.
Go to System and click Administration.
Select the relevant ledger.
Click on the Special Accounts tab.
Enter accounts for all of the features you will be using (Retained Earnings is mandatory as this account is used in the end of year processing).
Click Save.
Step 4 - Set up bank accounts
The Bank tab in Accounts is where the bank account details are entered (account name, account number etc), the receipt clearing account is linked, and cheque and receipt details set.
Go to System and click Administration.
Select the relevant ledger.
Select a bank account and click on the Bank tab.
Tick the "Is this a bank account" box to show the fields.
Complete the relevant fields, then click Save.
Repeat steps 3-5 for other bank accounts.
Step 5 - Set up Receipting
If receipts are required to be issued from this ledger, follow these steps to complete the setup - Set up Receipting
Further information on the Receipting feature can be found at Receipt entry workflow
Step 6 - Set up the statements and interest features
Interest - How are interest calculations set up?
Statements - How do I set which accounts will have statements produced?
Step 7 - Import budgets
Follow these steps - How do I import a budget?
Step 8 - Give access to users
New user
Go to System and click Users.
To add a new user, click Add User.
In the Name field, search for the users name. Note that users must be already set up in Active Directory for them to appear on this list.
Complete the following fields/selections:
Default Time Zone
COA Administrator - ticking this box allows the user to modify the global chart of accounts for entity types that the user has access to. Only users approved by the entity CFO should have COA Administrator ticked.
Role - roles can be chosen at the entity level, which would give the chosen level of access to all ledgers below it. Alternatively, the role can be chosen at the Ledger level if different access is required for different ledgers. For an explanation of roles, see What functions can be accessed by each role in GL2?
Click Save when complete.
Repeat steps 3 - 6 to create more users.
Existing user
Go to System and click Users.
Find the name of the user to have access to the new ledger and highlight it.
In the entity and ledger tree section, find the ledger that the user needs access to and highlight it.
Choose the applicable role for this ledger from the Role menu.
Click Save when complete.
Repeat for more users as required.