System Journals

System journal mapping establishes default accounts to use when ledger entries are generated by application activity. There are four (4) system journals that must be mapped in order to generate and export ledger entries: Accounts Receivable, Inventory, Point of Sale, and Receiving.

GL Mapping - System

Each row in the grid lists a specific type of activity that requires a ledger entry if that activity occurs.

Category

This column lists the type of transaction (source) responsible for generating the entry.

Description

The description provides an additional level of detail describing the specific type of activity within the transaction being recorded.

Type

This column lists the account type or class. Types include asset, liability, expense, income, and COGS (Cost of Goods Sold). Assets refer to what your company owns. Liabilities are what your company owes. Expenses are what your company pays to others for services. Income is what your company receives from others as payment for goods and services. COGS or "Cost of Goods Sold" is a special type of expense that records the cost of inventory your company sells. Until inventory is sold, your inventory is an asset (and often a liability until it has been paid for).

Each type maintains either a debit or credit balance by default. Debits increase assets; however, debits also decrease liabilities. An asset account would usually maintain a debit balance and a liability account would usually maintain a creditbalance. The difference between any assets and liabilities is recorded financially as retained earnings (also known as owner's equity). This keeps the balance sheet accounts (assets & liabilities) in balance. Differences between expense, income, and COGS are recorded financially as net income. Net income keeps the P&L (Profit and Loss or Income Statement) accounts in balance. As a rule, the sum of all debit and credits must balance.

G/L Account

This column is the only column that is not read-only in the data grid. This is where you specify a 5-digit account number for each row in the grid.