| Transactions in GL, AP, & AR are grouped into batches. A batch is a group
of like transactions for a particular period of time. i.e. All payments received on a
given day would go into a batch. While Visual Accounting imposes no limits on the number
of transactions in a batch, it is recommended that transactions be entered and posted
daily. The usual approach is:
- The bookkeeper or operator runs a total on the dollar amount of each new batch
and assigns a batch control number.
- The transactions are entered, with debit and credit entries to the appropriate
accounts.
- When the debits, credits and batch totals balance, the General Journal is
printed.
- If the bookkeeper or accountant is satisfied that it is in order, the batch is
posted to the master files. Multiple batches may be entered and edited at the same time
and only batches in balance will be posted.
Okay, why batch versus real-time? Simply stated, because accountants love it and
because accountants are involved in most purchasing decisions. A batch-oriented system
ensures correctness and provides a detailed audit trail. It also helps to ensure that no
transactions are omitted or entered twice and allows editing prior to posting, thus
avoiding numerous adjusting entries after the fact. Note: There are NO serious,
multi-user, accounting systems that are real-time.
That said, there are actually two batch options, selectable by the user:
- When invoices are posted from the Order Entry module, both an AR batch and a GL
batch is created. The accounts receivable clerk prints the AR journal and makes any
necessary adjustments, then posts the batch, which then updates the customers' balances.
The person responsible for the General Ledger, reviews the GL batch, prints the
journal, and posts. This option makes the most sense in organizations which have
split the accounting duties amount multiple people.
- Under the second option, invoices are posted directly to the GL and AR tables,
eliminating the intermediate batches.
In all cases, the on-hand quantities in the item table are updated real-time by
the OE module. |
