General ledger
In Arabic دفتر الأستاذ العام
The complete record of a business’s accounts, holding every debit and credit posted to each account in the chart of accounts.
In plain words
Every transaction ends up in the general ledger as a journal: sales, purchases, payments, stock movements. Each account, from cash to sales to stock, shows its opening balance, its movements and its closing balance.
In a distributor, most of those journals should come from documents rather than from someone typing them, so the ledger is current and every figure can be traced back to an invoice, bill or movement.
The common mistake is posting summary journals at month end from spreadsheets. The totals may be right, but nobody can explain a single figure without opening the spreadsheet.
- Opening balance
- SAR 5,000
- Customer receipt
- + SAR 2,400
- Vendor payment
- − SAR 1,100
- Bank charge
- − SAR 50
- Closing balance
- SAR 6,250
In Axon Suite
How Axon Suite handles it
In Axon Suite, invoices, payments and stock movements post their own journals to the ledger, and every automatic journal names the document that posted it.
Feature
Every journal names its source
Every automatic journal names the document that posted it, and every invoice, bill and credit note lists the stock movement and journals it raised. One click takes you from one to the other.
Open: Every journal names its source