Configuring the General Ledger

You would usually not need to configure your organization's general ledger and accounting from scratch. opentaps provides you with a template in hot-deploy/mycompany/ to help you set up your organization. All you have to do is edit the XML files to fill in the name and address of your company.

The first step to configuring the ledger is to set up your company as an internal organization and configure its accounting preferences. You can create your company as a Party Group in the Party Manager and then associate a Role of "Internal Organization" (INTERNAL_ORGANIZATIO) with it.

Next, you would configure the following accounting preferences for your company:

• Tax form of choice
• Cost of Goods Sold (COGS) method: LIFO, FIFO, or average cost. COGS method should be consistent with the inventory reservation method of the product stores associated with this party.
• Base currency

Once configured, the system does not allow you to change key accounting practices such as COGS method or default currency right now. If you’ve made a mistake, use [Web Tools] > [Entity Data Maintenance] to correct it.

All the warehouses which may hold inventory for your company should have its ownerPartyId ("Owner") field set to your company's partyId. This can be done in the Warehouse application's Configuration screens.

Finally, you must configure your company's Accounting Time Periods. At a minimum, you should configure fiscal years for your company.