Configure a ledger

The ledger forms the backbone of your administration. This is where you record all of your financial entries. You can retrieve and change any entry in the ledger.

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Description

If your environment is based on a pre-defined Profit environment, by default it contains a chart of accounts in accordance with the Dutch classification. You can of course use your own layout. However, Profit makes it easy for you because you can adjust the ledger accounts numbering scheme.

We recommend that you determine your chart of accounts in collaboration with your accountant.

Ledger account types

The following ledger accounts have a special application in the financial administration:

• Result account

  The result is the balance of all accounts for a single financial year included in the profit and loss account. If you add an environment you must enter an account number for it. Profit will subsequently automatically add this account.

• VAT accounts

  You register the VAT to be paid and claimed via balance sheet accounts. Because these accounts are linked to VAT codes, they are automatically updated while entries are posted.

• Payment differences

  Payment differences result when the amount of outstanding items is not fully paid up.If you add an environment you must enter an account number for it. Profit will subsequently automatically add this account.

• Debtor and creditor summary accounts

  You link debtors and creditors to a summary account. Outstanding items in the subadministration are linked via this account. For example, when you add a sales invoice for a debtor, Profit automatically enters the total amount on the summary account of the relevant debtor. When the debtor pays, the item is debited from the summary account.

  You configure your own summary accounts. For small companies a single summary account for debtors and a single summary account for creditors is often sufficient. You can use the summary accounts to make a distinction between certain groups such as domestic and foreign debtors. This provides you with greater insight into the information you can extract from your ledger.

• Cash and bank account numbers

  You enter cash and bank entries in the similarly named journals. These journals have a fixed contra account. The balance of, for example, your Kas ledger account must be equal to the current cash balance after you have posted all cash entries. If you have different bank account numbers, you must use a separate journal with its own account for every bank account number.

• General journals with a fixed contra account.

  An example of a general journal with a fixed contra account is the opening balance. This is a suspense account without a balance after you have entered all opening balance entries.

Multiple administrations

You maintain the ledger accounts at the environment level. The chart of ledger accounts therefore applies to all administrations within the environment.

Example:

A better description for ledger account 'Auto 95-PRF-1' would be 'Auto Executive'. The latter description is of a general nature and can be used in multiple administrations. The former description can only be used by the administration to which the car belongs.

The ledger account 'Rabobank 30.00.00.100' can only be used in a single administration, while the ledger account 'Rabobank' can be used in multiple administrations.

Procedure

• Add a ledger account
• Change a ledger account number
• Delete ledger accounts
• Block manual entries to ledger accounts
• Block/unblock a ledger account
• Change the length of ledger account numbers
• Ledger account description per administration (Accountancy)
• Structure the ledger using account levels
• File financial statements with the Chamber of Commerce (CoC)
• Configure the reporting cockpit
• Add journals
• Import a chart of ledger accounts
• Configure the reference chart of ledger accounts ('RGS')

Also see

• Ledger

  The ledger contains all financial entries. Financial entries are recorded via the journals, although it is also possible for other components to generate financial entries. An example of this is the journalising of sales invoices.

• Example of a chart of accounts
• Configure the Payroll chart of accounts

  The Profit Payroll chart of accounts contains the ledger accounts for journalising the wage costs. This chart of accounts has to seamlessly match the chart of accounts of your financial administration. You also add the ledger accounts to the financial administration.