The General Ledger (GL) is the backbone of any organization’s accounting system used to compile two key financial statements: Balance Sheet (assets & liabilities accumulated at a specific point in time); and, Income Statement (the profit or loss generated in a specific time period). The GL contains user-defined account codes and the listing of the account names is called the chart of accounts (or COA). Posting is the process of recording amounts as credits and debits in the GL. Properly structured COA’s and accurate Posting, typically managed by accounting experts, are vital. Prior to Posting, the process to properly classify a transaction is sometimes referred to as GL Coding.
GL Coding Issues (focus on Accounts Payable)
Organizations processing large volumes of invoices (say > 1,000/month) realize the following issues;