Baraza Accounting – Functionality

General Ledger

The double entries of SMES are kept in Ledgers. Ledgers are divided into three:

  • Sales Ledger: This is for Customers’ personal Accounts
  • Purchase Ledger: This is for Suppliers’ personal Accounts
  • General Ledger: This contains the remaining double entry accounts such as those relating to expenses, fixed assets and capital

The general ledger is the core of your company’s financial records. These constitute the central “books” of your system, and every transaction flows through the general ledger. These records remain as a permanent track of the history of all financial transactions since day one of the life of your company.

The general ledger is a summary of all of the transactions that occur in the company. It is built up by posting transactions recorded in the general journal.

There are seven basic categories in which all accounts are grouped:

  • Assets
  • Liability
  • Owner’s equity
  • Revenue
  • Expense
  • Gains
  • Losses

Accounts Payable

Accounts Payable (or A/P) refers to the accounting of products or services, which a company has bought and needs to pay off. The Accounts Payable is integrated with the General Ledger. List of the Creditors and their respective details is necessary for the system to work. This is done only once. Entries made in the Accounts payable is allocated a Document number, which is generated automatically by the system Creditors, form a major part in our liabilities.

The following input is necessary for Accounts Payable:

  • Opening balance for each creditor
  • Local purchase order for each order placed per department
  • Approval of the orders
  • Goods Received note
  • Transfer of invoices between debtors accounts
  • Adjusting Creditors Goods received note to agree with Invoice sent
  • Posting other credit expenses other than trading expenses
  • Voiding entries made in the creditors account
  • Settling creditors Account. I.e. posting creditors payments
  • Prepayments
  • Allocation of payments
  • Voiding Payments posted
  • Reconciling creditors account

Accounts Receivables

Accounts Receivable (or A/R) refers to products or services provided by your company for which payment has not yet been received. Accounts receivable uses the Sales Ledger.

On a company’s balance sheet, accounts receivable is the amount that customers owe to that company. Sometimes called Debtors, they are classified as current assets. Debtors form a major part of the companies trading activities. List of clients and their respective details is necessary. Every transaction made in the system is allocated an Invoice number automatically. The following data is essential for Accounts Receivable processing:

  • Opening balance for each debtor
  • Sales posting for every sale made
  • Transfer of invoices between debtors accounts
  • Posting Debit note and credit note
  • Late fee posting
  • Receipt posting either cash or cheque
  • Advance receipt from clients
  • Allocation of receipts
  • Posting refunds
  • Voiding Cash receipt
  • Reconciling debtors account

Accounts Receivable posting will generate the following reports:

  • Aged Accounts Receivables
  • Client Statement
  • Sales volume report
  • Receipt listing
  • Clients Activity Report
  • Missing Invoice listing
  • Voided receipts listing

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