AEM©

The Accounting Entry Matrix or AEM© is another important tool developed in-house by MaGC®.  The AEM© finds application in the accounting manuals developed by MaGC. The Accounting Entry Matrix in its basic form is a tabular representation of all possible accounting entries that arise in the course of day to day accounting in an organization. The AEM© identifies different possible transactions and for each transaction provides:

1. The type of accounting entry to be passed namely, receipt voucher, payment voucher, journal voucher
2. The account heads to be debited and the account heads to be credited
3. The supporting voucher based on which the accounting entry is passed
4. The primary books of account which are affected by that entry

The AEM© is specific to that organization and includes only those transactions which occur in that organization. The AEM© in its basic form is a ready reckoner to the accountant. It is the entire accounting manual in a capsule. The accountant need not read through pages of running text to find out quick solutions to his day to day accounting problems. The AEM© is very useful for the internal auditor who verifies the transactions during vouching.

The AEM© has proved to be big hit with government clients particularly local bodies who are in the process of transition to double entry accrual accounting.

Click here for a sample Accounting Entry Matrix.