GL Tutorial-GL/SL Relationships

General Ledger Tutorial

GL/SL Relationships

Before we get into the report, let's quickly review what information you will find on the General Ledger and Subsidiary Ledger and then how they are related.

The slide below summarizes information found on each type of account.

General Ledger (GL) - Where we are...

The General Ledger(GL) paints a picture of our financial position at any specific time.
GLs track how much we own (assets), how much we owe (liabilities) and the difference (fund balance).

Assets
Cash
Accounts Receivable
Inventory EQUALS Liabilities
Accounts Payable
Deferred Revenue PLUS Fund Balance
Beginning Fund Balance
Revenues
Expenses
Fund Additions
Fund Deductions

Subsidiary Ledger (SL) - How we got there...

The Subsidiary Ledger details how we got to where we are.
SLs provide information on revenue, expense, budget and encumbrance activity
by object code (FBM090) and by transaction (FBM091).

Revenues
Increases Fund Balance Expenses
Decreases Fund Balance Budget
Revenue and Expenditure Plan
No effect on Fund Balance Encumbrances
Commitments to spend
No effect on Fund Balance

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