Very new to this so please excuse me if this is a daft question. I have two month’s of accounts on the manager system, I needed to know my turn over for my business account manager at the bank so I printed off the General Ledger Summary.
My first month’s balance £-3,334.16
My second month’s balance £3,135.59
However none of these figures are shown on the Summary and in the very bottom line I have a figure of £34,284.68 can anyone tell me where manager has got this figure from?? I sure wish I had earned that amount but sadly not.
From your description, it is not totally clear what you are referring to. The General Ledger Summary does not list monthly balances, no matter what you mean by that phrase. Instead, for each account you have created, it lists that account’s opening balance, debits, credits, net movement, and closing balance. The opening and closing balances are as of dates specified when you first create that specific General Ledger Summary report. You can generate a report for any period of time.
The numbers at the bottom are totals of debits and credits for all accounts. Remember, in double-entry accounting, there at least two accounts involved in every transaction. So the sums should match.
This report has nothing to do with profit or loss. For that, see the Profit and Loss Statement.
If you’re not familiar with the general practices and terminology of double-entry accounting, you can learn most of what you need to know to use Manager at http://www.accountingcoach.com. You should understand that Manager is a tool for accounting, and it makes many things easier with its features. But to use it, you must have at least basic knowledge of the subject.
Thank you for you reply, the general summary report gives lot’s of figures I’ve added them all up and they total £27,112.71 But I am given a figure of 34,284.68.
My total turnover for these 2 month’s was £6940 (my working out) so where are these huge figures coming from in the General Ledger summary?
I can’t troubleshoot your accounting without access to your records. I don’t know what numbers you added up, so it is impossible for me to tell whether what you see is correct or not. I can only tell you that you are on the wrong track trying to relate your profit, loss, “turnover” (which normally relates to inventory movement rates), or almost any other parameter to the sums of debits and credits in the General Ledger Summary.
That report is meant to summarize changes in net account balances from its start date through its end date. It also provides a little confirmation that your accounting is correct, because the sum of debits should equal the sum of credits. The particular format Manager uses also happens to list the net profit (which some would call gross profit), but that really isn’t what the report is for. And the magnitude of the sums is irrelevant. Those sums are just the total of balancing transactions. For example, if you took company cash out of a till and put it into the bank, debits and credits would both increase; but there would have been no net effect on your balance sheet or profit and loss statement.
The sums in the General Ledger Report are further removed from profit or loss because the totals include both income statement accounts and balance sheet accounts, that is, temporary income and expense accounts and permanent asset, liability, and equity accounts. Those account types aren’t mixed except when checking for correctness or summarizing, as is the case with this report.
General Ledger Summary has clickable amounts. Have you tried clicking on those amounts to see what transactions it contains? There will be your answer how Manager has calculated the figure.
I am having the same issues as sno_queen, i think the general ledger summary is not reporting correctly, the values are higher than should be for total credit and total debits.
You need to be more specific, @allets.stella. Can you provide information about why you think the totals are incorrect? Also, remember the General Ledger Summary is created on an accrual basis, not a cash basis. And, as I said in my earlier response in this thread, it combines the temporary income and expense accounts with permanent asset, liability, and equity accounts. Some of those accounts may have entries generated automatically by Manager. So it is very difficult to have a sense of what total debits or credits “should be.”
After several months through Guides and the Forum, i found i had entered the figures wrongly, after correcting my mistakes, the totals make sense . . .my apologies for the false alarm.