General ledger records and balances all transactions affecting organization's financial statements. Transactions are first recorded in general journal before posting to ledger accounts. Ledger balances debit and credit amounts to compute assets, liabilities, and revenue. Computerized systems replaced manual ledgers for time and error reduction
General ledger is foundation of double-entry accounting system. Records all financial transactions with debit and credit accounts. Transaction data aggregated into five main account categories. Transactions flow through sub-ledgers to general ledger
Enterprise structure includes company, company code, and business area creation. Fiscal year and chart of accounts setup required for financial reporting. Document types and number ranges define accounting parameters. Tolerances and field status settings control data processing
Company code is an organizational unit in financial accounting. Data type is BUKRS, with time-based nature. Can be changed for each fiscal year
T account visually represents debit and credit entries in financial transactions. Each T account has account name above letter T, debit on left, credit on right. Used in double-entry bookkeeping where every transaction affects two accounts
Bank reconciliation compares company's accounting records with bank account balances. Statement shows reasons for any discrepancies between two records. Helps detect errors, fraud, and manage financial risks