FAQ-> Accounting-> General Ledger

As stated elsewhere, Lizzy BMS / DMS has been built around a complete accounting system and features a fully functional, live General Ledger. This means Lizzy is accurately tracking your business as it happens-there is no need to manually post entries into the GL after you have already performed your business transaction.

However, this also means that Lizzy has to protect certain GL account types. These accounts are protected to ensure that the General Ledger and the modules stay in balance. In keeping with G.A.A.P. (Generally Accepted Accounting Procedures) policy, some transactions have to be balanced back to the module that generated the GL transaction. Properly tracking GL account balances to Lizzy modules will protect you in multiple ways should you ever get audited, in case of a disaster such as a fire, or simply performing your day-to-day business operations.

For example, inventory does not just appear or disappear. You buy it from a Supplier on a Purchase Order to enter it into inventory and sell it to a customer on an Invoice to reduce inventory. Inventory that cannot be accounted for has to be adjusted out to Inventory Shrinkage. Cash doesn’t just appear or disappear from your checking account. You deposit money from the Cash Drawer or other user-specified manual entry and write checks or generate EFTs to remove money. These are just two examples of what Lizzy protects and why.

So then, what is a business to do if the GL inventory doesn’t match what a physical inventory shows that you have if you cannot enter a manual journal entry to correct this? In this situation, you have to manually adjust in or out parts within the system to match what you physically have on hand.

Other types of protected accounts and the recommended method of correcting would be Accounts Receivable-adjust individual AR Invoices as needed, Accounts Payable-create Expense POs to add to the balance that you may owe to a Supplier or Refund Expense POs to add Credits to reduce the amount that you owe to a Supplier, Petty Cash/Checking-enter miscellaneous deposits to increase the balance or a miscellaneous pay-out/check to reduce the balance, Undeposited Funds-Add/Remove Money as needed.

There are also many GL accounts that are not protected and can be manually adjusted. Just remember, these adjustments must be balanced- you cannot Credit for $500 and Debit for $600. You do have the ability to split adjustments among different account numbers (Credit $500 to account #1, Debit account #2 $300 and Debit account #3 $200) as long as they are balanced.