Applications Overview

Financials

General Ledger
Part of the Financials application
Trademarks
Pronto Software, Pronto, Pronto Xi, the
Pronto interrobang logo, the P interrobang logo,
Pronto Woven, Pronto iQ and Pronto Cloud are
all registered trademarks of Pronto Software
Limited. All other marks are the property of their
respective owners.
Copyright © 2023 Pronto Software Limited
(ABN 47001337248).

Disclaimer
This document contains statements related to
our current and future developments that may
constitute forward-looking statements.
They are subject to changes and may be available
in a Pronto Xi 770 service pack or future release
of Pronto Xi.
All diagrams, drawings, product screenshots
and any other types of visualisations in this
document, use demo or synthetic data created
for display purposes only.
 Contents
General Ledger 4
Account structure 5
Account features 5
Types of accounts 6
Budgets 6
Financial reporting 8
Financial data 11
Financial summaries 12
Cash flow forecasting 13
Multi-company environments 14
Inter-company postings 14
Multi-currency reporting 15
Consolidation 15
Foreign currencies 15
Tax systems 16
Tax analysis 16
Commitment accounting 16
Unearned income 16
User masking 17
Integration with Pronto Xi 17
Audits and tracking 18
Excel import and export 18
Normal and prior-period journals 18
Automatic journals 19
Cash payments 20
Financial year calendar 20
Date-based transactions 20
End-of-period and end-of-year tasks 20
Emissions Tracking 21
Business Intelligence 21
 General Ledger
Keep a
tight rein General Ledger
on your (GL) is at the
finances heart of your
Enterprise Resource
Planning (ERP)
system, capturing
the financial
transactions
processed in
other Pronto Xi
modules

4
Features include: Having defined which codes are valid for each
component of the Master Chart, you can
• multiple companies, divisions and cost easily generate all, or a selection, of General
centres Ledger accounts. This also has the benefit of
reducing the chance of posting to incorrect
• a high degree of automation
accounts.
• the ability to process high transaction
volumes Your account structure can change as your
business changes. For example, if your
• integrated audit and tracking tools to help company uses one character for a region code
with regulatory compliance and the number of regions increases, you can
expand the account code to handle a larger
• multiple budgets, with multi-currency
range. Pronto Xi will maintain data integrity on
support
the live General Ledger, including all archived
• consolidation functionality, including history and related sub-ledgers.
foreign subsidiaries

• extensive reporting capabilities that utilise

Account features
reporting hierarchies General Ledger automates the flow of
postings based on your specific requirements,
Account structure using special accounts to specify how
Pronto Xi will map each transaction onto
To meet your organisation’s specific reporting General Ledger. This means that your data
requirements, Pronto Xi incorporates a Master entry staff require only minimal knowledge of
Chart structure. General Ledger postings.

The Master Chart gives you the ability to For management and statutory reporting,
specify what each element within an account you can maintain multiple budgets for each
code represents. For example, the first two account code. You can also generate a variety
characters of an account code may represent of management reports, creating different
the company; the next four characters a views based on any number of hierarchies.
cost centre; characters seven and eight a
department; and characters nine to 12 the
natural account code.

Consolidated

Company Company

Department Department Department

Account Account Account Account Account Account

Create your own account structure

5
 Types of accounts Budget maintenance and reporting

Statistical accounts GL Budgets provide a powerful, simple,

General Ledger | Financials

flexible and intuitive approach to meet

To simplify reporting on non-financial key the most demanding financial budgeting
performance indicators (KPIs) – such as cost requirements. GL Budgets can be maintained
per unit produced, revenue per employee and at the account code level or group level (such
cost per kilowatt – statistical accounts collate as by department or natural account) to allow
relevant non-financial operational data. budgeting to be performed at the reporting
level. Budgeting can be manipulated at the
Expense accounts lowest level, with full visibility of changes
made.
Additional details can be captured for expense
accounts based on General Ledger tagging. GL Budgets have been optimised for easy data
This is particularly useful for expenses such as manipulation, meaning you can either use a
entertainment, telephone costs and employee set of in-solution tools or leverage the power
travel, or even for tracking small projects. of Excel. These tools enable you to create
adjusted forecasts by combining actuals and
Budgets budgets; apply spread factors; and export and
import smoothly via Excel.
Flexible and intuitive budgeting capabilities are
provided across General Ledger, including GL GL Budgets allow multiple people to
Budgets, Configurable Budgets and Hierarchy contribute to the budgeting process using
Budgets. a structured contributor budgeting system
that maintains flexibility and simplicity. The
This common approach delivers: Budget Contributor Management function
allows individualised and recipient-specific
• seamless interaction with Excel sub-budgets to be distributed. These separate
contribution budgets can then be aggregated
• budget collaboration processes
into the master budget.
• spreading and automated budget
adjustments Sales and inventory budgets can be pushed
up to specified General Ledger account
• the ability to combine actuals with budgets budgets, meaning that important information
to create adjusted budgets and forecasts within the operational budgets can be
leveraged in the GL Budgets.
• sophisticated budget notes and auditing
functionality
GL Hierarchy Views allow you to intuitively
view and interact with your budgets based on
your Hierarchy Budgets. Your budgets roll up
or expand using the same structure as your
Profit and Loss (P&L) or Balance Sheet.

6
Configurable Budgets Hierarchy Budgets

Configurable Budgets allow you to create Hierarchy Budgets allow you to create budgets
sales-based budgets using any combination based on existing reporting hierarchies.
of attributes from the customer and inventory
master records. Hierarchy Budgets are quick and simple to
create. They provide the flexibility to budget at
For example, you could create a three-level any level of granularity, with the budget then
budget based on a mixture of Brand, Class, rolling up to the higher levels.
Category, Group, Territory, Warehouse and
Industry attributes. Profit and Loss and Balance Sheet
budgeting
The budgets can be created daily, weekly
or per period, and can be based on a range Profit and Loss (P&L) and Balance Sheet
of measures including value, quantity, gross budgeting can now occur at any level
profit and gross profit percentage. directly in Pronto Xi. Budgets for the P&L and
Balance Sheet can be changed directly in the
With Configurable Budgets, you can create Hierarchy View, removing the need to export
quantity-based items by customer budgets, and import data in spreadsheets.
which roll up to warehouses. These budgets
can then publish a forecast which – because Budgeting by account code
it aggregates to a warehouse – can be used
to drive both material requirements planning Pronto Xi also allows you to budget based on
(MRP) and distribution requirements planning the elements that make up the account code,
(DRP). such as the company and the natural account.

Configurable Budgets can leverage special The example below shows budgeting by
account structures to push the sales budget natural account: freight expenses are rolled up
values up to the relevant GL Budgets, helping in the top section, and the elements that make
to provide simple yet practical bottom-up up the budget are broken down in the second
budgeting. section. Maintenance can occur at either level.

Configurable Budgets have been optimised to

export to and import from Excel. This allows
stakeholders from across the business to
contribute to the budgeting process using the
Budget Contributor Management function.

Create budgets based on natural accounts

7
 Financial reporting
GL Hierarchies provide flexibility in how The reporting hierarchies allow the accounts
General Ledger | Financials

General Ledger accounts are structured for to be structured based on the desired
reporting purposes. reporting outcome, ensuring that different
users can get the reporting they need.

EBIT

Depreciation Amortisation EBITDA

Other
Gross Profit Expenses
Income

Motor
Cost Administrative Communication Employee General Occupancy Office Selling
Revenue Vehicle
of Sales Expenses Expenses Expenses Expenses Expenses Expenses Expenses
Expenses

Overview of a small subset of GL Hierarchies

IBM™ Cognos™ Analytics* statement of financial performance report

8 *IBM and Cognos are trade marks of International Business Machines Corporation, and are registered in many jurisdictions
Reporting hierarchy structures Customised financial reporting

A simple hierarchy structure means that To create your own hierarchy structures and
anyone with a knowledge of accounting reports based on natural accounts or full
can easily produce financial reports using General Ledger accounts, you can begin
GL Hierarchies. with predefined hierarchies and make any
necessary changes, or create hierarchies from
Pronto Xi lets you define the hierarchy scratch to get bespoke reporting outcomes.
structure as a series of parent-child
relationships in line with fundamental From there, you can assign a single natural
accounting principles. For example, Current account to different places within a report
Assets may sit under Assets and so on. Once – for example, a transport company may
the structure is defined, users simply need to have a natural account for fuel, but the
determine where their natural accounts should logistics department wants it to appear as a
attach to the hierarchy. Cost of Sales account, while the marketing
department wants it as an expense.
Out-of-the-box financial reports
You can set accounts such as Cash at Bank to
General Ledger offers a selection of appear as an asset when they have a positive
predefined compatible financial reports and balance, and as a liability when they have a
hierarchies. negative balance.

Attach your natural accounts to the Complex reports

appropriate spot within the hierarchy for out-
of-the-box reporting. Reports include P&L, Because GL Hierarchies are built on simple
Balance Sheet and a Statement of Cash Flow, parent-child relationships, they are intuitive
with varying levels of detail available. For a and easy to understand. While they are
detailed list of reports, see p21. generally populated with natural accounts,
they can also be combined with separate
hierarchies based on various elements
of the Master Chart to deliver complex
reporting outcomes.

9
 Transaction tagging Tags are highly customisable, with support for
hierarchy, budgeting and the ability to capture
Tags allow you to capture and categorise quantities such as litres of petrol or tonnes of
General Ledger | Financials

transactions, making it easier to track extracted ore.

expenses at a granular level without needing
to create new General Ledger accounts. For .
example, all motor vehicle expenses can be
posted in a single account, using transaction
tags to identify the types of expenses.

View a list of tags that can be associated with transactions

Drill down to transaction summaries for any tag

10
Create quick and powerful snapshots of key financial information with GL Hierarchy View

Financial data View options include:

GL Hierarchy View allows you to create a • using predefined views that mirror your
view of your financial data within a Pronto Xi default financial reports
screen. By presenting financial information
• bringing in actual to budget, then
in a similar structure to traditional financial
calculating and displaying the variance
reports, GL Hierarchy View makes it easy to
validate figures from your financial reports and • having separate columns for different
reconcile back to source transactions within companies, territories or divisions
Pronto Xi.
• building ratios between the rows so you can
So your team can get the information they see information such as the cost of sales as
need, views can be personalised for an a percentage of sales
individual and built into their Pronto Xi menu.
In addition, because views obey masking, Data updates
users will only receive appropriate information.
Because GL Hierarchy Views are built using
View options staged data, drilling up and down through the
various levels is instantaneous.
As soon as the GL Hierarchy is populated, you
can start using the default P&L View. The GL Hierarchy View can be set to
automatically refresh overnight or you can
If you require non-standard or more complex do it “on the fly”. You can also determine
views, you can use the GL Hierarchy View how many versions of the snapshot data you
Designer to create a view exactly the way you want to keep, so you can compare it with
want it. current data.

11
 Reporting Financial summaries
GL Hierarchy Views use the same hierarchies The GL Executive Analysis Summary is a
General Ledger | Financials

as standard Pronto Xi financial reports, powerful analysis tool. It provides instant

enabling you to validate figures in your insights, and offers drill-downs to source data
financial reports. It is also easy to drill through without having to create reports.
to the underlying transactions that contribute
to the period balances. GL Summary Views are highly customisable,
and can be based on a combination of
In addition, you can push the views out to General Ledger dimensions. These include
Excel for further manipulation or presentation. natural accounts and departments.

Get an overview of the General Ledger for a chosen period with the GL Executive Analysis Summary

12
Choose how to calculate your cash flow projection

Cash flow forecasting

The ability to accurately model projected
cash flow is a fundamental requirement for
managing a business’s continued liquidity.
With General Ledger, you can easily create
effective and flexible cash flow projections.

Choose exactly what will be included in your

projections, reflecting assumptions that
are specific to your business. This means
information that is not currently available in
the underlying database (such as upcoming
capital expenditure) can be reflected in cash
flow projections.

Designed to work with Business Intelligence,

cash flow reporting combines the power of
Pronto Xi and the simplicity of IBM Cognos
technology to deliver an outstanding solution.

13
 Multi-company environments Multi-currency functionality means you can
trade in local currencies while consolidating
There are four ways to manage multi-company necessary information in your home currency.
General Ledger | Financials

setups: You can easily handle inter-company trading

and manage transfer pricing with multi-
• maintain multiple companies in one dataset currency transactions, while still adhering to
the different tax and legal regulations.
• use separate datasets for each company,
and consolidate to a holding company
By feeding consolidated data into IBM Cognos
• use separate datasets for each company’s reports, you can create a bird’s-eye view of
subsidiary ledger, and share a common your entire business across all your locations,
General Ledger domestic or international. With these
powerful aggregation capabilities, you can
• use foreign currency consolidation manage inventory, enforce credit limits for
customers, use attributes to segment data and
Using the Master Data Management module, much more.
you can manage multiple franchises, trading
companies or international subsidiaries. Get
full visibility of all your business entities from a
Inter-company postings
single view, helping you to focus on expanding In a multi-company environment with a single
your business without the data pains. dataset or a common General Ledger, General
Ledger can automatically raise inter-company
Data from individual entities rolls up balancing entries. This ensures that each
automatically based on defined rules and company remains in balance both within itself
configurations, significantly reducing the risk and within the General Ledger.
of errors due to double-handling.

Because you do not need to use spreadsheet

imports or manual data transfers between
your entities’ financial teams, your period-end
processing is quicker and error-free.

ABC Holdings

Consolidated Dataset Eliminations

MKCI MBI MMI MGCI MMNI MDI

Kancun Mine Diamonk Mine Zoo West Mine

Fryer Mine Iron Mine Granola Mine

Multi-company consolidation

14
 Dataset 1
Local (AUD) GBP£
AU$
Consolidated
dataset
GBP £
Dataset 2 Local (NZD) GBP£
NZ$

Overview of data consolidation into a reporting currency

Multi-currency reporting Consolidation

Pronto Xi’s Multiple Reporting Currencies With a robust consolidation engine, GL
(MRC) functionality helps you meet Consolidation is a flexible, intuitive and
demanding International Financial Reporting powerful tool that supports a wide range
Standards (IFRS), which require transactions of financial consolidation needs – from
to be recorded in both a local currency and a straightforward consolidations through to the
“functional” currency. most complex corporate structures.

MRC has been designed so transactions Designed to work with Pronto Xi’s Multiple
can be recorded in an unlimited number Reporting Currencies, GL Consolidation is
of functional currencies, providing you ideal for entities with operations in different
with complete flexibility. It also supports regions that have different local currencies. It
the “temporal method” of translation for is also flexible enough to consolidate datasets
fixed assets across each of the functional with different financial periods and years,
currencies. regular and irregular periods, and non-uniform
charts of accounts.
In doing so, MRC helps complex corporate
structures to comply with both local and
international reporting, and to transact
Foreign currencies
and report in a variety of currencies and Foreign currency transactions are supported
jurisdictions. in Pronto Xi’s Accounts Receivable, Accounts
Payable and Purchasing modules, with values
The MRC capability can be used across maintained in foreign currency and the local
Pronto Xi’s General Ledger, Accounts currency equivalent in General Ledger.
Receivable and Accounts Payable modules.
The Foreign Currency functionality can be
used to maintain customer and supplier
accounts, raise sales and purchase orders,
process cash receipts, make cash payments,
maintain bank accounts, and transfer funds
to and from foreign bank accounts. Currency
revaluations of foreign customer and supplier
balances can also be performed.

15
 General Ledger | Financials

Tax systems Commitment accounting

General Ledger has a globally compatible tax By raising a purchase order for an item, you
architecture that underpins tax reporting. can use commitment accounting to track the
value of outstanding orders against a General
With a low-level, data-driven setup, it caters for Ledger account. This gives you greater control
a broad range of international tax regimes and of expenditure performance against budget,
their ever-changing compliance requirements. and better information to plan cash flow.

Tax analysis Unearned income

General Ledger provides a range of tools Pronto Xi’s Service and Rental modules allow
to analyse and reconcile tax for reporting you to post unearned income (i.e. income
purposes. earned on a contract that relates to a future
accounting period) to a Balance Sheet holding
Tax analysis is presented in a data grid, so you account and take it up as income in the period
can easily apply filters and export information, that it applies to.
as well as identify and isolate the data you
need to reconcile tax activities.

To ensure the integrity of the reporting

requirements when returns are being
prepared, records are collated into a date-
based grouping and marked with a user-
defined description. This allows multiple work
streams to be undertaken without the risk of
duplicated accounting.

16
User masking Integration with Pronto Xi
You can use masking to prevent individual Most General Ledger transactions are
users from viewing selected components of automatically posted from operational
General Ledger. For example, you can restrict transactions processed through other
access to a specific department, company Pronto Xi modules.
or region.
Updates to General Ledger and subsidiary
ledgers are synchronised in real time and
controlled by mapping tables or special
accounts.

Mapping tables are simple to set up and allow

you to customise postings based on your
organisation’s requirements. If the mapping
is not fully defined, Pronto Xi uses predefined
accounts to avoid operational discontinuity.

Pronto Xi Essentials – included modules

Platform Applications Intelligence

Foundation Financials Distribution Supply Chain Applications
Foundation Financials Distribution Supply Chain Business Intelligence

Technology Platform General Ledger Inventory Warehouse Management System Applications

BI Essentials
Web Interface & Fixed Assets Purchasing Distribution Requirements Planning BI Administration
Enterprise Security Accounts Receivable Advanced Forecasting BI Designer
Sales
Forms Management Accounts Payable Electronic Data Interchange BI Data Module
Task Intelligence Customer Central Radio Frequency BI Data Explorer
Alert Intelligence ScanPack
Developer Tools Catalogue
Proof of Delivery App
Visualisations
Integration Payroll & Retail Manufacturing KPI Workspaces
Resources
Business Intelligence
Visualisations

Reports
Integration Payroll & Resources Retail Manufacturing

API Engine Point of Sale Shopfloor

Pronto Xi Sync POS App Planning Mobile BI
Resource Management
Resource Scheduler Repairs Management Scheduler
Payroll Laboratory
Employee Portal Quality Management
Human Resource Data
Management
B2B Asset & Facility KPI Library
Management
Business Intelligence

eCommerce Reporting data

Data
Asset & Facility
B2B eCommerce

CRM
Management

packages
CRM
Avenue Project Data Quality
Customer Relationship Service Management
Management Data Intelligence
Pronto Service App
Sales App Analytics Cubes
Service Connect
Maintenance Management ETL Express
Rental BI Unlimited

Pronto Xi product family

17
 Audits and tracking Normal and prior-period
General Ledger’s comprehensive audit and
journals
General Ledger | Financials

tracking tools help to simplify compliance. Transactions can be posted directly into
General Ledger without affecting any
Audit Management provides an integrated other ledger.
audit that registers changes to key data – who,
what and when are captured automatically. Journals are normally posted to the
Pronto Xi includes tools that allow you to view accounting period relevant to the transaction
and manage the audit data. date; however, they can be posted to an
earlier period, or the last period in the previous
Major transaction processes assign a tracking financial year, by using a prior-period journal.
ID to events, while key enquiries allow you to
drill back or forward through the various sub- Authorised users can post transactions to
ledgers to view related postings. closed periods. These can be identified
as being posted after the closure of the
A sales order can be traced through Inventory, accounting period.
Customer or General Ledger and all of its
transactions viewed.

Excel import and export

Files can be imported from a spreadsheet or a
flat file into General Ledger or other Pronto Xi
modules such as Accounts Receivable,
Accounts Payable or Inventory. They can also
be exported.

Bank statements, cash receipts and other bank

information can also be imported.

Manage standing and self-reversing journals

18
Automatic journals
Automatic journals can be set up as templates • Masking journals – distribute the total period
for recurring general journals, eliminating movement of multiple accounts across a
repetitive data entry. range of accounts (for example, allocating
pooled cost centres across other cost
Recurring journal types include: centres)

• Standing journals – create a batch of entries • Self-reversing journals – post in the current
for posting each month for a nominated period and reverse with a future posting in
number of months the next period

• Distribution journals – distribute the • Periodic standing journals – create a batch

total period movement of one account of entries for each month, but allow the
across a range of accounts (for example, amount to be posted to change each
allocating expenses across cost centres) by month while the accounts remain static
percentage or set amount

19
 Cash payments Date-based transactions
The Cash Payments functionality records The date of each transaction determines the
General Ledger | Financials

payments from the bank for sundry expenses. period that it is posted in. The year and period
It can also be used to post bank charges and number, relative to the financial calendar, is
other deductions from the bank account. also stamped on each transaction.

Cash payments can be made through the This feature facilitates reporting and exporting
General Ledger, either via Accounts Payable or information to third-party analytics tools. It
directly from the General Ledger. Details of a also makes it easier to sort or filter transactions
manually raised cheque can be included in the by accounting period and year.
Cheque Register for reconciling.

You can also enter the payments’ applicable

End-of-period and
tax, ensuring it is included in tax reporting end-of-year tasks
and analysis.
Many of the tasks involved in closing the
You can keep transaction detail history for as current period are automatically performed by
long as necessary. In summary mode, General the Period End Processing function.
Ledger holds data by period for an indefinite
number of years. Previous years’ transactions At year end, the Profit and Loss accounts are
are archived. closed out to the Appropriation accounts
and year-to-date balances updated. Each of
Financial year calendar Pronto Xi’s main ledgers (Accounts Receivable,
Accounts Payable, Inventory and General
General Ledger uses 12 or 13 user-defined Ledger) can be rolled independently.
periods. The length of each period is defined
by the period start dates.

Both regular and irregular periods are

supported. Irregular accounting periods are
utilised in financial calendars – for example,
each month can end on the last Friday, or 4–5
week period quarters can be used.

Record cash payments in the General Ledger

20
Use any of your reporting hierarchies to produce a Statement of Financial Performance, with an option to
compare against budget

Emissions Tracking Business Intelligence

To help businesses improve their sustainability, Financial reports
Pronto Xi’s Emissions Tracking functionality
is accessible to every organisation running Pronto Xi includes ready-to-go financial
Financials. reports for the General Ledger, which include:

Emissions Tracking captures activity data, • Balance Sheet

calculates emissions and presents results. It
• Profit and Loss (P&L)
records activity data during normal business
operations, but business-specific operations • Trial Balance
can also be easily integrated by using
infrastructure tools. • Transactions

• Expense Analysis – Summary & Detail

You can assemble, personalise, analyse
and interact with carbon data through a • Projected Cash Flow
dashboard.
• Account Movement Analysis
Once you have set emission targets, Emissions
Tracking lets you identify and quantify options, • Goods Received Not Invoiced (GRNI)
establish a strategy and implement a practical • Statement of Cash Flow
plan to achieve real results.

21
 KPI Library General Ledger metrics • Revenue

Pronto Xi’s KPI Library has a range of pre- • Cost of Goods Sales (COGS)
General Ledger | Financials

configured key performance indicators (KPIs)

• Gross Profit
that help you analyse your business and make
effective and informed decisions. • Operating Expenses

The KPIs for General Ledger include: • EBIT

• Current Ratio • EBITDA

• Quick Ratio • Net Income

• Cash Ratio • GL Accounts Receivable Values

• Working Capital • GL Accounts Payable Values

• Debt/Equity • Inventory Value

• Return on Asset • GL Cash Value

• EBITDA to Sales • GL Investments

• Return on Equity These metrics can all be shown as snapshots,

• Return on Capital Employed providing the ability to analyse trends
over time.

Create KPI snapshots, email them to colleagues or deploy them with your company

22
About us

We are an Australian developer of award winning

business management and analytics solutions.
Pronto Xi, our Enterprise Resource Planning (ERP)
software, integrates accounting, operational and
mobile features in a single system – optimising
business processes and unlocking actionable insights.
That’s why for more than 40 years, over
1,500 Australian and global organisations, across
a wide range of industries, have trusted Pronto Xi
to simplify their most complex challenges.
With headquarters and our Development Centre
located in Melbourne, we have support offices and
consultants based across Australia, as well as a global
network of Resellers and Solution Partners. Specialised
business units within Pronto Software have the
expertise to assist you with pivotal technology –
Digital Transformation with Pronto Woven, Cloud and
Hosting services with Pronto Cloud and Business
Intelligence solutions with Pronto iQ.
When you choose Pronto Software, you gain a team
with deep industry experience, giving us the ability to
understand your specific needs and build innovative
solutions that drive business growth and revenue.

info@pronto.net
1300 PRONTO (1300 77 66 86)

pronto.net Pronto-Software
@ProntoSoftware ProntoSoftware
P_AO_General Ledger_01_1123