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XETEX Xebra is structured around business activity and functions. Day-to-day activity captures all of the information necessary to provide management and financial reports. Management reports are produced directly from the detailed activity. Financial reports, like the Balance Sheet and Income Statement, are produced from General Ledger Files that are not maintained on a day-to-day basis. The General Ledger Files are maintained using the month end procedures, often referred to as closing the month. The Summary Journals are produced from the detailed day-to-day activity and, in turn, summarize the activity for the month in a Posting Summary that is imported to the General Ledger Files. The General Ledger Files are completely separate from the detailed activity files.
This separation has several distinct advantages:
| 1. | Errors in day-to-day operations are easier to fix. As you are preparing to mail invoices, you notice an error. If the General Ledger had been updated immediately, the only way to fix the error would have been to credit out the invoice and create a new one. With Xebra, it is simply a matter of fixing the mistake and reprinting the invoice. |
| 2. | Posting to the General Ledger can be date driven, rather than being dependent on closing the period. If the General Ledger is updated for every detailed transaction, an accounting period must be closed before any activity for the new accounting period can be entered. |
| 3. | Even after the Posting Summary has been imported into the General Ledger, with the proper authority, errors can be corrected in the detailed activity and the month can be closed again. There is a limit to how far back you can go with reposting months to correct errors. The limit is not with the software, it is created by the publication of your financial reports. When you release financial information for tax preparation, reposting is no longer appropriate. Any error corrections or adjustments within that year must be made in the Year End Adjustments period. If you are required to release financials to shareholders or creditors, that information should not be changed after those financials are released. |
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