process map procedure manual - auto-it australia - general ledger journal...procedure manual [client...

Process Map

Pickerings Auto Group

Procedure Manual

[Client Trading Name]

Administration Module

Process Code: A400 – General Ledger Journal Update

[Business Area] Module

Process Code: [Process Code] [Process Name]


Administration Module Process Map - A400 General Ledger Journal Update

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©Auto-IT Pty Ltd | This material is the property of Auto-IT Pty Ltd. All Use, disclosure and/or reproduction not specifically authorized by Auto-IT Pty Ltd is prohibited.

Contents

High Level Process Definition .............................................................................................................. 3

Business Policies ................................................................................................................................. 4

Procedures .......................................................................................................................................... 5

General Ledger Journal Update ...................................................................................................... 5

Statement of Work ............................................................................................................................. 8

Introduction .................................................................................................................................... 8

Current Year Journal ....................................................................................................................... 9

Prior Year Journals ........................................................................................................................ 11

OH Distribution ............................................................................................................................. 13

Write Off Journal ........................................................................................................................... 14

Reversing Journals ........................................................................................................................ 15

Process Flowchart ............................................................................................................................. 17

Program Parameters ......................................................................................................................... 19

General Ledger Journal Update .................................................................................................... 19



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High Level Process Definition

Process Name General Ledger Journal Update

Process Intent To enable the creating, entering and posting of General Ledger Journals.

Process Owner Financial Controller

Process User Dealership Accountant Dealership Admin

Process Starts with Recognition of requirement for journalising entries to GL Accounts

Process Ends with Journal created for immediate and / or future posting and postings completed in an accurate and timely manner

Process Customer Financial Controller



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Business Policies The following Business Policies are applicable to the execution of the processes defined and referred to in this Process Map.



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Procedures

Process Description: General Ledger Journal Update

Process (Major) Steps Procedure Internal Policy

1. Prepare for GL Journal Transaction

Objective:

a. Open the GL Journal Update window

b. Verify / modify the Company ID and Journal

Effective Date

2. Current Year Journal

Objective: To process a Current Year Journal either Standing Journal created in GL Standing Journal Entry or once of created in this application

a. If processing a Standing Journal confirm that it has

been created in GL Standing Journal Entry

b. Select ‘Standing Journal’ option from the drop

down list on the ‘Option’ field

c. Enter / Select the From / To Journal Numbers

d. Click Retrieve to display Journal Transactions

e. Make any required changes to the Journal Entries

– GL Account; Value; Quantity; Description; GST

Type.

f. Click Process Journal (clicking Save Std Jnl will

generate a system warning message regarding the

Saving of GST Types)

g. If processing a Current Tear Journal (not a Standing

Journal) select ‘Current Year’ option from the drop

down list on the ‘Option’ field

h. Enter / Select the Journal Number

i. Enter and Entry Type (User Defined to 8 alpha /

numeric characters)

j. Add Lines as required – select GL Account, Enter

value; Quantity; Reference; Select GST Type (if

required); Description

k. Ensure Journal Total is $0.00 (Balances)

l. Click Process Journal



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3. Prior Year Journal

Objective: To process a GL Journal related to a Prior Financial Year

a. Select Option ‘Last Year’ from the drop down list

attached to the Option field

b. Verify ‘Effective Date

c. Enter / Select Journal Number

d. Enter and Entry Type (User Defined to 8 alpha /

numeric characters)

e. Add Lines as required – select GL Account, Enter



f. Ensure Journal Total is $0.00 (Balances)

g. Click Process Journal

4. Overhead Distribution Journal

Objective: To effect a distribution of overhead costs across nominated departments

a. Select Option ‘OH Distribution’ from the drop

down list attached to the Option field


c. Select Journal Number (OH Distribution Journal

must be created in GL Standing Journal Entry)

d. Enter and Entry Type (User Defined to 8 alpha /

numeric characters)

e. Add Lines as required – select GL Account, Enter



f. Make any required changes to the Journal Entries

g. Click Process Journal

5. Write Off Journal

Objective: To automatically clear transactions eliminating manual effort

a. Select Option ‘Write Off Journal’ from the drop



c. Select Journal Number

d. Click Process Journal



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Reversing Journal

Objective:

a. Select Option ‘Reversing Entry’ from the drop


b. Verify ‘Effective Date’ and ‘Year End Date’

c. Enter the Reversal Date for the entries

d. Enter Journal

e. Enter and Entry Type (User Defined to 8 alpha /

numeric characters)

f. Add Lines as required – select GL Account, Enter

Value; Quantity; Reference; Select GST Type (if


g. Ensure Journal Total is $0.00 (Balances)

h. Click Process Journal



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Statement of Work

Introduction

The following options are available within the GL Journal Update program;

1. Standing Journals 2. Current Year 3. Future Year 4. Last (Prior Year)Year 5. Reversing Entry 6. OHs Distribution 7. Write Off Journal



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Current Year Journal

A Standing Journal is a GL Journal that is to be repeated in several periods.

It must first be created in GL Standing Journal Entry.

Note: When you retrieve a Standing Journal it displays a screen of standing journal transactions to be processed.

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For Standing Journal option, you can maintain the GST Type column with the values available in the drop down list. To save all GST Types, click ‘Process Journal’.

Do not click ‘Save Std Jnl’ because it will not save the GST Types.

Clicking ‘Save Std Jnl’ will result in the following prompt being displayed to the user.



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Prior Year Journals

Prior Year Journals are used to affect the last year financial transactions.

They may be processed both before and after an End Of Year Reset has been performed (refer Process Map A420 General Ledger Year End Reset for further information).

However the result will be slightly different depending on whether a Year End Reset has been performed at the time of doing the Prior Year Journal.

If End Of Year has not been run – Prior year journals will only update the prior year transactions. The opening balance to the current year will be unaffected. When the End Of Year Reset is run, the opening balance will then include those prior year journals.

Prior Year Current Year

PROFIT & LOSS ITEMS

Transactions for year xxxx.xx

+ Prior year journals before EOY xxxx.xx

(EOY reset performed)

Total xxxx.xx Balance sheet – Retained earnings op bal

xxxx.xx

BALANCE SHEET ITEMS


+ Prior year journals before EOY xxxx.xx

Total xxxx.xx Opening balance xxxx.xx

If End Of Year has been run – Prior Year Journals will update both the prior year transactions and the opening balance in the current year.

Balance Sheet items will show a transaction in the last Financial Year with an opening balance adjustment in the current year.



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Profit and Loss items will show a prior year transaction in the last Financial Year against the P&L account, and the opening balance adjustment will show against retained earnings (balance sheet item).

There will be no effect on the Profit and Loss in the current year.

In the current year each prior year journal will show separately and will now also have an opening balance flag.

Prior Year Current Year

PROFIT & LOSS ITEMS


Total xxxx.xx Balance sheet – Retained earnings op bal

xxxx.xx

(EOY reset performed)

Prior year journals after EOY xxxx.xx Balance sheet – Retained earnings op bal adjustment

xxxx.xx

Prior year journals after EOY xxxx.xx Balance sheet – Retained earnings op bal adjustment

xxxx.xx

BALANCE SHEET ITEMS


Total xxxx.xx Opening balance xxxx.xx

Prior year journals after EOY xxxx.xx Prior year journal – adj to opening bal.

xxxx.xx

Prior year journals after EOY xxxx.xx Prior year journal – adj to opening bal.

xxxx.xx

If a transaction is entered against Profit & Loss Accounts, the entered value will also be recorded In the opening balance of the Retained Earnings Account in the current year’s General Ledger. If a transaction is entered against Balance Sheet Accounts, the entered value will also be recorded in the opening balance of each of those accounts in the current year’s General Ledger.



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OH Distribution

GL Journal to be posted as an overhead distribution. In other words, this will move a balance from a head office account across your choice of branches & departments.

These are created in GL Standing Journal Entry program, by applying a percentage to the accounts you wish to distribute to.

The values are distributed based on the accounting period in which to do the update.

Entries are then processed in that period and only for the value outstanding in that period.



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Write Off Journal

Bulk Journal transactions that can be automatically cleared to save manual work and time.

Select the Company ID to be used and the Year End Date will be displayed.

Enter the Effective Date these journals will post on, this field will default to the system date. If it is a Reversing Entry, the Reversal Date is the date that the reversal of the original entry will be posted.

Enter the Journal Number, (user-defined number, up to 6 numeric characters). This will be the reference number that can be used to recall this entry at a later date for maintenance.

Enter the Entry Type, (up to 8 characters (alpha/numeric)). This field is user defined and can contain any combination.

Enter the Value From and To

Select the GL Account

Enter the GL Description and Reference

Tick the ‘Include Single Trans Ref’ checkbox to include transactions where this is only one record for the GLTRANS.Ref. Un-tick to exclude.

Click Retrieve. This imports the accounts and Ref and Description from the ‘GL Standing Journal’.

Enter the GL Account Code this transaction will post to, or use the GL drop down list to select the account

Enter the dollar Value, (positive = debit / negative = credit) and Quantity to be journalled.

The sum of all lines entered must equal zero (balance) before the entry will be saved and/or posted. The ‘Ref’ is a user-defined number (up to 9 characters alpha/numeric).

If this transaction should be reported on the Business Activity Statement, select a GST type from the dropdown list.

In the Description field, add descriptions to define the GL entries that will be viewed in GL enquiries/ GL reports.

The Filename field is useful to attach any external documentation to this entry. Use the ellipsis button to browse for the specified files that you want to attach.

Note: External documentation such as transaction reconciliation or notes for auditors can be extremely useful at year end.

Click the Save button. All transactions will be posted to the General Ledger at this point.

The Clear button will delete the entire journal.

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Reversing Journals

This is a GL Journal which performs two entries in the one transaction.

Posting of current journal will occur for the Effective Date with the Reversal transaction occurring in the period selected in the Reversal date.

Click the Options field and select the Reversing Entry type of journal from the Option list.

Select the Company ID to be used and the Year End Date will be displayed.

Enter the Effective Date these journals will post on, this field will default to today’s date.

Enter the Reversal Date which this entry is to reverse on.

Enter the Journal Number, (user-defined number, up to 6 characters numeric). This will be the reference number to be used to recall this entry at a later date for maintenance.

Enter the Entry Type, (up to 8 characters alpha/numeric). This field is user defined and can contain any combination of characters.

Enter the GL Account Code the transaction will post to, or use the GL dropdown list to select the account.

Enter the dollar Value, (positive = debit / negative = credit) and Quantity to be journalled.

The sum of all lines entered must equal zero (balance) before the entry will be saved and/or posted.

The Ref is a user-defined number, up to 9 characters alpha/numeric.

The GST Type field is unavailable.



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Reversing journals should not be used for anything related to GST transactions.

Enter a Description of the journal.

The Filename field is useful to attach any external documentation to this entry.

Note: External documentation such as transaction reconciliation or notes for auditors can be extremely useful at year end.

Click the Save button.

All transactions will be posted to the General Ledger at this point.

The Clear button will delete the entire journal. To delete a single line, place the cursor on the line, right mouse click, and select delete.



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Process Flowchart



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Program Parameters

The following notes define the parameters applicable to the application described in this Process Map.

General Ledger Journal Update

Parameter Name Parameter Function

AllowIntercompanyTrans To determine if intercompany GL transactions are allowed, or restricted to a single company

Valid Values: Y/N

Default Value: Blank

OptionsAllowed To specify the available user options

Valid Values: C = Debtor Cash, S = Sundry, V = Vehicle Debtors, F = Floorplan

Default Value: Blank

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