GL Entry
Overview
GL Entry – Business Overview
GL Entry is the core financial record used to track every accounting impact within Dafater. It represents a single line of financial movement in the General Ledger and serves as the foundation for all financial reporting, compliance, and decision-making.
What GL Entry Is Used for in Business Operations
GL Entry records every debit and credit that affects your company’s accounts. Whenever a business transaction occurs—such as a sale, purchase, payment, or payroll cost—one or more GL Entries are automatically created to reflect the financial impact.
In simple terms, GL Entry answers: - Which account was affected? - By how much? - On what date? - Due to which business activity?
These entries collectively form the General Ledger, which is the official financial record of the business.
Prerequisites and Setup Requirements
Before GL Entries can be created and used effectively, the following business setup must be in place:
- Chart of Accounts defining all financial accounts (assets, liabilities, income, expenses, equity)
- Company and fiscal year properly configured
- Accounting rules and policies (such as how revenue, expenses, taxes, and adjustments are handled)
- Operational documents (sales, purchases, payments, payroll, etc.) that trigger financial transactions
GL Entry itself is not usually created manually; it is generated automatically once these foundations are established.
Typical Workflow and Business Process Fit
Business transaction occurs
Examples: customer invoice, supplier bill, employee expense, loan repayment, asset purchase.Transaction is approved or submitted
Once the transaction is confirmed, it becomes financially effective.GL Entry is generated automatically
Dafater creates one or more GL Entries to record the debit and credit impact.Financial reports are updated
Balances, profit and loss, balance sheet, and cash flow reports immediately reflect the new GL Entries.Review and audit
Finance teams review GL Entries to ensure accuracy and compliance.
GL Entry acts as the bridge between daily business activities and financial reporting.
Key Business Scenarios Where GL Entry Is Essential
Financial statements preparation
All balance sheets and profit & loss reports are built from GL Entries.Auditing and compliance
Auditors rely on GL Entries to trace every financial figure back to its source.Month-end and year-end closing
Accurate GL Entries ensure clean financial closings and correct profit calculation.Cost and profitability analysis
Management uses GL Entries to analyze expenses, revenues, and margins.Regulatory and tax reporting
Tax calculations and statutory filings depend on properly recorded GL Entries.
Important Considerations for Users
Accuracy is critical
Errors in source transactions directly affect GL Entries and financial reports.Limited manual handling
GL Entry should normally be system-generated; manual adjustments should be controlled and reviewed.Timely posting matters
Delayed or backdated entries can distort financial results for a period.Audit trail is permanent
GL Entries create a historical record and should not be altered without proper justification.Review exceptions regularly
Finance teams should periodically review GL Entries for unusual amounts or incorrect accounts.
In Summary
GL Entry is the financial heartbeat of Dafater. While users may rarely interact with it directly, every financial decision, report, and compliance requirement depends on it. When business transactions are processed correctly, GL Entries ensure financial accuracy, transparency, and trust in the company’s numbers.
Basic Information
- Module: Accounts
- Document Type: Document
Fields
| Field Name | Label | Type | Required | Options | Description |
|---|---|---|---|---|---|
| posting_date | Posting Date | Date | - | Date entry is posted into Dafater general ledger | |
| transaction_date | Transaction Date | Date | - | Actual business transaction date recorded in Dafater | |
| fiscal_year | Fiscal Year | Link | Fiscal Year | Fiscal year under which the entry is accounted in Dafater | |
| due_date | Due Date | Date | - | Payment or settlement due date for this ledger entry | |
| account | Account | Link | Account | Ledger account impacted by this transaction in Dafater | |
| account_currency | Account Currency | Link | Currency | Currency maintained for the selected ledger account | |
| against | Against | Text | - | Reference accounts this entry is balanced against | |
| party_type | Party Type | Link | DocType | Type of external party linked to this transaction | |
| party | Party | Dynamic Link | party_type | Specific customer, supplier, or party involved | |
| voucher_type | Voucher Type | Link | DocType | Source document type generating this ledger entry | |
| voucher_no | Voucher No | Dynamic Link | voucher_type | Reference document number creating this entry | |
| voucher_subtype | Voucher Subtype | Data | - | Additional classification of the source voucher | |
| transaction_currency | Transaction Currency | Link | Currency | Currency used in the originating transaction | |
| againstvouchertype | Against Voucher Type | Link | DocType | Document type this entry is adjusted against | |
| against_voucher | Against Voucher | Dynamic Link | againstvouchertype | Specific reference document for adjustment or settlement | |
| voucherdetailno | Voucher Detail No | Data | - | Line-level reference number from the source voucher | |
| transactionexchangerate | Transaction Exchange Rate | Float | - | Exchange rate applied for currency conversion | |
| debitinaccount_currency | Debit Amount in Account Currency | Currency | account_currency | Debit amount expressed in the account currency | |
| debit | Debit Amount | Currency | Company:company:default_currency | Debit value recorded in company base currency | |
| debitintransaction_currency | Debit Amount in Transaction Currency | Currency | transaction_currency | Debit amount in the original transaction currency | |
| creditinaccount_currency | Credit Amount in Account Currency | Currency | account_currency | Credit amount expressed in the account currency | |
| credit | Credit Amount | Currency | Company:company:default_currency | Credit value recorded in company base currency | |
| creditintransaction_currency | Credit Amount in Transaction Currency | Currency | transaction_currency | Credit amount in the original transaction currency | |
| cost_center | Cost Center | Link | Cost Center | Cost center responsible for this financial impact | |
| project | Project | Link | Project | Project linked to this financial transaction | |
| finance_book | Finance Book | Link | Finance Book | Finance book used for parallel or statutory accounting | |
| company | Company | Link | Company | Company to which this ledger entry belongs | |
| is_opening | Is Opening | Select | No, Yes | Indicates whether entry is an opening balance | |
| is_advance | Is Advance | Select | No, Yes | Marks entry as an advance payment or receipt | |
| to_rename | To Rename | Check | - | Internal flag used for renaming this entry | |
| is_cancelled | Is Cancelled | Check | - | Indicates whether this ledger entry is cancelled | |
| remarks | Remarks | Text | - | Additional notes or explanation for the ledger entry |
Permissions
| Role | Read | Write | Create | Delete | Submit | Cancel |
|---|---|---|---|---|---|---|
| Accounts User | ✓ | |||||
| Accounts Manager | ✓ | |||||
| Auditor | ✓ |
Related DocTypes
| DocType | Relationship | Module |
|---|---|---|
| Account | Links to | Accounts |
| Company | Links to | Setup |
| Cost Center | Links to | Accounts |
| Currency | Links to | Geo |
| Finance Book | Links to | Accounts |
| Fiscal Year | Links to | Accounts |
| Project | Links to | Projects |