📖 B's MicroLedger: User Guide & Documentation

Welcome! This guide provides step-by-step instructions for setting up your financial backbone, executing core transactions, and generating vital financial reports.

I. Solution Overview

What B's MicroLedger Provides

B's MicroLedger is an integrated, foundational **Enterprise Resource Planning (ERP)** system built for small to mid-sized businesses (SMBs). It provides a full, synchronized financial and operational backbone.

  • **Integrated Accounting:** Automatic dual-entry posting (e.g., posting an invoice simultaneously posts Revenue and COGS).
  • **Module Coverage:** General Ledger (GL), Accounts Receivable (AR), Accounts Payable (AP), Inventory Management, Fixed Assets Management, and Reporting.
  • **Security:** Role-Based Access Control (RBAC) through User Roles and Permissions.

Suitable Industries

Ideally suited for industries that rely on accurate **cost tracking** and **inventory management**, such as:

  • **Small Manufacturing/Wholesale:** Tracking inventory and calculating Cost of Goods Sold (COGS).
  • **Distribution:** Managing stock levels, goods receipts, and sales invoicing.
  • **Service/Consulting Firms:** Utilizing the core GL and AR/AP modules.

II. Step-by-Step Setup: The Foundation

The COA is the backbone of your entire financial system.

  1. Navigate to **SETUP & MASTERS** → **Chart of Accounts**.
  2. Click **Create New Account**.
  3. Define the **Account Code** (e.g., 1000 for Cash).
  4. Select the correct **Account Type** (Asset, Liability, etc.). This is critical for reports.

Setup the items you buy, sell, or manufacture.

  1. Navigate to **SETUP & MASTERS** → **Inventory Items List**.
  2. **Define the SKU** and **Standard Cost**.
  3. **Crucially, assign the three GL Accounts:**
    • **Inventory Asset Account (Debit):** Where the inventory value sits (e.g., 1400).
    • **COGS Expense Account (Debit):** The cost when the item is sold (e.g., 5000).
    • **Revenue Account (Credit):** The GL account for the sales price (e.g., 4000).

Setup assets that depreciate over time (e.g., equipment).

  1. Navigate to **INVENTORY & FIXED ASSETS** → **Asset Acquisition**.
  2. Enter the **Original Cost**, **Salvage Value**, and **Useful Life (Years)**.
  3. Assign the three necessary GL accounts for depreciation tracking.

III. Step-by-Step Transactions

The GR increases your stock quantity and records the asset value.

  1. Navigate to **INVENTORY & FIXED ASSETS** → **Goods Receipt**.
  2. Fill in the **Header Details** (Vendor, Date).
  3. In the **Inventory Line Items** section, use the "Add Line Item" button to enter the **Item** and **Quantity Received**.
  4. Click **Post Goods Receipt**.

GL Result:

Debit Inventory Asset (Balance Sheet) / Credit GR/IR Clearing (Liability).

This is a dual-entry transaction that posts both the sale and the cost of the sale (COGS).

  1. Navigate to **SUB-LEDGERS & TRANSACTIONS** → **Record Invoice (AR/COGS)**.
  2. Select the **Customer** and fill in the **Header** details.
  3. In the **Sales Line Items** section, enter the **Item**, **Quantity Sold**, and the **Unit Price**.
  4. Click **Post Customer Invoice**.

GL Results (Two Entries):

  • Entry 1 (Revenue): Debit Accounts Receivable / Credit Revenue.
  • Entry 2 (COGS/Inventory): Debit COGS Expense / Credit Inventory Asset.

Calculates the straight-line expense for all assets and posts the necessary GL entry.

  1. Navigate to **INVENTORY & FIXED ASSETS** → **Run Depreciation**.
  2. Select the **Depreciation Period End Date** (e.g., 2024-03-31).
  3. Click **Calculate Expense** and review the figures.
  4. If correct, click **CONFIRM & POST DEPRECIATION ENTRY**.

GL Result:

Debit Depreciation Expense (Expense) / Credit Accumulated Depreciation (Contra-Asset).

IV. Step-by-Step Financial Reports

The internal sanity check that proves your GL is mathematically correct.

  1. Navigate to **FINANCIAL REPORTS** → **Trial Balance**.
  2. Select the **Report Date (As Of)**.
  3. Click **Generate Trial Balance**.

Goal: Verify that Total Debit Balance = Total Credit Balance.

Shows profitability over a period of time.

  1. Navigate to **FINANCIAL REPORTS** → **Income Statement (P&L)**.
  2. Select the **Start Date** and **End Date**.
  3. Click **Generate Report**.

Review: Examine Gross Profit, Operating Income, and Net Income figures.

Shows Assets, Liabilities, and Equity at a specific point in time.

  1. Navigate to **FINANCIAL REPORTS** → **Balance Sheet**.
  2. Select the **Report Date (As Of)**.
  3. Click **Generate Report**.

Goal: Verify that Total Assets = Total Liabilities + Total Equity.