Ledger

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1.To open ledger view, go to menu Master > Ledger. There are some pre-defined ledgers available with different Ledger Groups. Opening Balance, Opening Stock and Profit & Loss these Accounting ledgers are created under the Ledger Group Primary. You cannot delete or edit these ledgers.
2.To Create new Ledger: Click on toolbar button New. There are four tabs in the ledger frame.

Info: Info tab contains Ledger Details.

Ledger Name:Enter the Ledger Name. Innoventry does not allow the entry of duplicate names.
Print Name:Print name of the ledger is created by default. However this can be changed.
Alias Name:Enter the false(pet) name of Ledger.
Ledger Group:Select the Ledger Group from the list of Ledger Groups under which the Ledger is to be created. Selected default Ledger Group is Sundry Debtors. However you can create new ledger group by using New button in frame or using Ctrl + Space shortcut key.
Opening Balance:Enter the Opening Balance of the Ledger. Dr or Cr Specify whether the Opening Balance is Debit or Credit.
Description:Enter any details or description related to the ledger.
Bank A/C No.: Enter the Bank Account Number of the Ledger
Bank Name:Enter the Bank Name of which account number is provided.
Branch Name:Enter the Branch Name of the bank.
IFSC Code:Enter the IFSC (Indian Financial System Code) of the bank.
GSTIN:Enter the GSTIN(Goods and Service Tax Identification Number ) of Ledger which is used to identify Ledger registered under GST.
GST type:Select the type of GST i.e Registered, Unregistered, Composition levy.
PAN Number:Enter valid PAN (Permanent Account Number) of the ledger.
Dr/Cr Limit (Days):Enter the Dr/Cr limit in days
Dr/Cr Limit(Amount):Enter the Dr/Cr amount limit
State:Selct the state of the Ledger
Address:Enter the address of the Ledger
City: Enter the city of the ledger
Mobile:Enter the mobile number of the Ledger
Alternate No. 1 and Alternate No. 2: Enter the alternate phone numbers.
Fax: Enter the fax Number of the Ledger.
Email:Enter valid Email address of the ledger that will be used to email documents, reports and data from Innoventry.
Alternate Email:Enter the Alternate email
Weblink: Enter the web site address of the ledger.
Anniversary: Select date of an anniversary of the ledger.
D.O.B.: Select the Date of Birth of the ledger.

Address: It is used to maintain multiple addresses of a ledger.

Click on New button to create a new Ledger Address.
Click on Edit button to edit or modify selected Ledger Address.
Click on Delete button to delete selected Ledger Address.

Image: There are three buttons in the image tab of ledger frame.

Browse: Click on the Browse button to browse the image from any folder of your system.
Webcam: To capture an image from Webcam click on the Webcam button.
Remove: To remove the image click on the Remove button.

Labels: You can select the particular label for the ledger, which you want.

Discount:

Item Group: Select Item Group on which discount will be applicable.
Discount (%): Enter the value of discount (%).
Click on Add button. You cannot add duplicate discount of item group for same ledger.
NOTE: Discount is applicable for only ledger of Sundry Debtors and Sundry Creditors ledger Group.

Billing Group:To visible Billing Group Tab in ledger dialog, go to Setup > Configuration > Tax Setting > Click on check box "Enable Custom Billing Group".

Classification: Select the billing classification from the list.
Billing Group: Check the check box of the billing group.

After adding details, click on OK or Apply button.

3. Click on toolbar button Edit to edit or modify selected ledger.

4. Click on the toolbar button Delete to delete selected ledger.

5. Click on the toolbar button Print to print the list of ledger details.

To see preview before printing go to Setup > Configuration > General Setting > Click on check box Show Preview Before Print.
You can email the ledger report and save as PDF and Excel.

Type of Ledgers:

Ledger Group for Assets:

Fixed Assets:

The word fix indicates that these assets won’t be sold in the current bookkeeping year.Examples of fixed assets are buildings, furniture, office equipment, machinery etc. This fixed asset is useful in calculating overall revenue of the company.Fixed assets are classified into two main types: Tangible and Intangible Assets.

Tangible Fixed Assets:

Tangible Assets are the assets that you can touch for example, buildings, land, hardware, various equipment, vehicles, furniture etc.

Intangible Fixed Assets:

Intangible Assets means assets which can not be touched. For example: goodwill of your business, licenses, registered or trademarked names, and even phone numbers, any innovation, and websites if you ever plan to sell.

Current Assets:

Current Assets are the assets which are expected to be converted to cash within a year. Current assets include cash, cash equivalents, accounts receivable, stock inventory, marketable securities, pre-paid liabilities etc.

It is a grouping of all accounts related to customers to whom goods have been sold on credit. Sum of all the money owed to a business by their customers is shown here and is termed as Accounts Receivable, Trade Debtors or Sundry Debtors.

Sundry Creditors

Accounts related to sellers from whom goods have been purchased on credit. Sum of all the money owed by a business to their sellers is shown here and is termed as Accounts Payable, Trade Creditors or Sundry Creditors.

Direct Expenses:

Direct as the word suggests are those expenses which are completely related and assigned to the core business operations of a company. They are mainly related to purchases and production of goods/services. Direct expenses are a part of the prime cost or the cost of goods/services sold by a company.

Direct expenses are directly related to the production of the product sold or service rendered, they may differ for different types of companies, such as manufacturing companies, construction companies, service companies, etc.

Direct expenses are shown on the debit side of a trading account.

Examples of Direct Expenses

Wages

Factory rent

Cost of raw material

Premises renting

Fuel

Carriage inwards

Indirect Expenses

Unlike direct, indirect expenses are not directly related and assigned to the core business operations of a firm. Indirect expenses are necessary to keep the business up and running, but they can’t be directly related to the cost of the core revenue generating products or services.

Just like direct expenses, indirect expenses can also be different for different types of organisations. These are usually shared costs among different departments/segments within the firm.

Indirect expenses are shown on the debit side of an income statement.

Examples of Indirect Expenses

Salaries

Telephone bills

Printing and stationery

Legal and Accounting charges

Carriage outwards

Difference between Direct and Indirect Expenses

Direct Expenses	Indirect Expenses
1. Expenses or direct costs incurred while manufacturing the main product or service of the company are termed as direct expenses.	1. Expenses or indirect costs which are notdirectly related to the core product or service of the company are termed as indirect expenses.
2. They become a part of the total cost of goods/services sold.	2. Indirect expenses are not included in the total cost of goods/services sold.
3. Shown on the debit side of a trading account.	3. Shown on the debit side of an income statement.
4. Direct expenses can be allocated to a specific product, department or segment.	4. Indirect expenses are usually shared among different products, departments and segments.
5. Examples – Direct labour or wages, cost of raw material, power, rent of factory, etc.	5. Examples – Printing cost, utility bills, legal and consultancy, etc.

Ledger Group	Ledger Name to be created	Descriptions
Capital Account	Capital Account
	Partners /Owners Drawings A/c
	Share Capital A/C
	Partner's Current Account
Current Asset	TDS Paid
	TCS Paid
	Goodwill
	Bills Receivable
	Accrued Income
	Prepaid Insurance	To account the insurance paid for the next Financial year.
	Income Tax Advance
Bank Accounts	Bank Accounts	All bank account Current account, OD Account, CC Account, savings accounts etc. For  Axis Bank A/c
Bank OCC Account	Bank CC Accounts
Bank OD Account	Bank  OD Accounts
Cash- In - Hand	Petty Cash A/c
	Cash A/c	default account
Loans &  Advances (Asset)	Salary Advance
	Loans to sister concern
	Loans to director
	Loans to partner
Stock in hand	Opening Stock
	Closing Stock
Sundry Debtors	Customer Ledger	All customers ledger who buys products or services from business
Current Liabilities	Bills Payable
	Outstanding Expense
	Lease Payable
	Income Tax payable
	GST Payable
	TDS Payable
	TCS Payable
	Expense Payable
	Divident Payable
	Unearned Revenue
Duties & Taxes	Sales Tax A/c
	Output Vat
	Input Vat
	TDS Account	Eg: TDS on Interest
	TCS Account	Eg: TCS on Motor vehcile
	Excise Duty
	CST A/c
	Service tax
	CGST	Type of duty should be gst
	SGST	,,
	IGST	,,
	UGST	,,
	CESS	Tax type selected cess
Provisions	Provision for Bad Debts
	Audit Fee Payable
	Salary Payable
	Wages Payable
	TDS Payable
	TCS Payable
	Compound tax payable
	Income Tax Payable
	Telephone charges Payable
	Rent Payable
Sundry Creditors	Supplier Ledgers	The supllier from whome you purchase raw materials and other thng for business in credit.
Direct Expense	Wages Account
	Repair & Maintenance
	Freight Paid	Freight paid for the purchase of materials for selling or manufacturing
	Factory Lighting
	Factory Rent
	Import Duty
	Royalty	For Mining, leasing etc
	Labor
	Power
	Electricity charges ( Factory )
	Loading & Unloading Exp
	Ware House Expense
	Custom clearing charges
	Carriage
	Freight Charges
	Coal & Fuel
	Gas chares ( Factory )
	Water Charges ( Factory )
	Export Duty
	Delivery charges ( Buying raw material)
	Diesel Expense ( Factory )
Fixed Asset	Land A/c
	Building
	Plant & Machinery
	Motor Vehicles
	Furniture & Fixtures
	Computer & Peripherals
	Computer software	Most Expensive software if purchased
	Long Term Investment
Indirect Expense	Interest On Capital
	Salary Account	Vary in relation to the nature of business, Some time salary account termed as direct expense.
	Directors Remuneration
	Partners salary
	Professional Fees
	Legal charges
	Interest on loan
	Depreciation
	Amortization
	Audit Fee
	Insurance
	Local Conveyance
	Miscellaneous Expense
	Rates & Taxes
	Round off
	Printing & Stationery
	Travelling Expense
	Vehicle Expense
	Telephone Charges
	Communication Expense
	Advertising charges
	Discount Allowed
	Staff Welfare Expense
	Compound Tax Paid
	Courier Charges
	Commission Paid
	Interest on Income Tax
	Tea & Coffee Expense
	Bank Charges
	Rent Expense ( Office )
	Maintenance Expense ( Office , Building )
	Sample Free
	Interest on VAT
	Interest on TDS
	Interest on TCS
	Donation & Charity
	Penalty
	Loss by fire
	Loss By theft
	Legal Charges
	Bad Debts
	Diesel/Petrol Expense	For travelling, cars for managers etc
	Freight Received	To account the freight charges received from customers. Eg: Transportation using Lorry
	Scrap Sale	sale of small amount carton box, machinery damaged parts etc.
	Commission Received
	Interest Received
	Interest On Investment Received
Indirect Income	Freight Received	To account the freight charges received from customers. Eg: Transportation using Lorry
	Commission Received
	Interest Received
	Interest On Investment Received
	Discount Received
	Bad Debt Recovered
Investments	Investment in Share
Loans ( Liability)	Loan Account	For Eg: ICICI Bank Loan a/c
Bank OD A/c ( Bank OCC A/c )	Bank OD /CC Accounts
Secured Loans	Car loan
	Housing Loan A/c
	Mortgage Loan	Assets are pledged against loans
	Secured Credit card A/c	credit cards issued against fixed deposit
Unsecured Loans	Students loan
	Credit  Cards
	Personal Loans
Miscellaneous Expense ( Asset)	Pre- operative expense
Purchase Account	All Purchase ledger created
Sales Account	Sale Ledger
Suspense A/c	Suspense A/c	Any unknown payment received, any difference in cash balance could not figured out. Can put the balance under suspense until it is figured out.
Profit & Loss A/c	Profit & loss account	created automatically