Question

For reporting purposes, your client would like to present information about customer postings that are NOT reflected in the G/L.

Which special G/L type do you recommend?

1) Statistical postings
2) Noted items
3) Bill of exchange
4) Free offsetting entries

Answer 1

The recommended special G/L type for presenting customer postings that are not reflected in the G/L is noted items (2). These are used to track memo records of potential obligations or rights and can later be converted into actual postings.

Step-by-step explanation:

For reporting purposes, when a client wants to present information about customer postings that are NOT reflected in the General Ledger (G/L), the recommended special G/L type is noted items. Noted items are special G/L transactions that are recorded as memo records, which means that they do not have an immediate impact on the G/L accounts. These postings are used to track potential obligations or rights, such as unexercised options, signed contracts, or approved loans that have not been disbursed. Noted items can later be converted into actual postings when the underlying transaction takes place.

Statistical postings, on the other hand, are used for internal reporting purposes and do represent values that impact the G/L indirectly. Bill of exchange transactions relate to the handling of negotiable instruments and are typically accounted for in the G/L. Free offsetting entries allow for more flexible posting but would generally also reflect in the G/L.