• The general ledger is a list of account balances for a specific company. It is used to support legal financial statements and other statutory reports.

• All accounting transactions to a company are recorded in the General Ledger; then, if applicable, P&L transactions are posted through to Controlling module.

• Where it is not practical to list all accounts of a specific category in the GL, e.g., customers, they are totalled and rolled up into one account (reconciliation account). The list of customer accounts (AR) is a sub ledger of the general ledger. Other sub ledgers are vendors (AP), fixed assets, material stock balances, work orders and capital projects.

• Transactions posted to sub ledgers are automatically rolled up into the General Ledger reconciliation
accounts

• Customer (AR) and vendor (AP) reconciliation accounts cannot be posted to directly. All other reconciliation
accounts need to be set up as post automatically only.

• All transactions from other modules that have a financial impact are integrated with the FI and CO modules; e.g., Material Management – good issue, goods receipt.

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