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Oracle General Ledger (GL) Good Practice Journals

Oracle General Ledger (GL) Good Practice Journals. Reliable Information for External Reporting. Management Accounts Statutory Accounts Finance Group University Board HESA returns Transparency Review Freedom Of Information Act VAT Corporation Tax.

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Oracle General Ledger (GL) Good Practice Journals

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  1. OracleGeneral Ledger (GL)Good Practice Journals

  2. Reliable Information for External Reporting • Management Accounts • Statutory Accounts • Finance Group • University Board • HESA returns • Transparency Review • Freedom Of Information Act • VAT • Corporation Tax These reporting requirements need a robust underlying Chart of Accounts and strict rules to ensure the reliability of information to avoid penalties

  3. Account Structure – ReCap

  4. Problems with Accounts Preparation • Income on expense codes (net off against travel claim) • Transactions on opening balance codes (careless choice of account) • Transfers not netting off & charged to expenses (dr 40150 cr 68500) 4. Staff costs in non staff (recharging staff on 48500 and 68500)

  5. Good Practice - Journals Transfer part of an Invoice / to another Analysis Code (Recharge) It is perfectly acceptable to transfer a share of an expense to another analysis code using the original account. This way the correct amount will appear on reports. [Could equally have been split over two lines to start with]

  6. Good Practice - Journals Recharging part of a salary / to another Analysis Code (Cross Charging) Salaries should be recharged using the 2 accounts. This way the original cost of the salaries is retained on 12151 but it can be seen that the overall staff cost was reduced using 22151. This will help inform strategic planning decisions. It is extremely important to ensure that the 22151 transaction nets off to nil. It is also important that the same account is used on both sides of the journal.

  7. Projectsaccounts to use When transactions are posted from projects to GL they follow a mapping rule. Here is a example of Expenditure types and there corresponding accounts. Please note : Any journals should be posted by RACDV only

  8. The effect of recharging from GL to Projects In this example salaries are recharged to a project (1). Overnight the project transaction is posted to GL (2) The mapping rules convert DA STF Nurses to 24251 (3) By ensuring that the correct account / expenditure type is used, the journal nets off to NIL once it Has been posted In General Ledger Converts To 24251 (2) Overnight posting to GL

  9. Good Practice - Journals Transfer of funds / to another Analysis Code Where a transfer of money takes place e.g. a school making a contribution to a conference, then transfer accounts should be used. 68500 and 48500 can be used together as they both end in “500”. It is extremely important to ensure that the 68500 and 48500 net off to nil.

  10. Bad Practice - Journals It is NOT acceptable to transfer a share of income to another analysis code using 7% and 48% account combinations. This way, on the Financial Statements, the income will be reduced and also the expenditure.

  11. Journal Summary • Transfer Expenses using • the account they were originally charged to. • 2. Correct Invoices using • the Invoice Lines • 3. Correct salaries using • the 1 account where originally charged • 4. Transfer salaries using • the salary recharge accounts 20000 to 29999. • 5. Transfer funds by • Debiting 48500 and Crediting 68500. • 6. Close analysis codes • by Debiting 48200 and Crediting 68200. Schools should always Consult RACDV before Posting entries between Projects and GL

  12. The effect of Journals upon the Financial Statements When producing the financial statements all accounts that begin with 48 and 68 should net off to nil. Otherwise the expenditure of the university will be over or under - stated. This is why we take special care when posting journals. Even when RACDV charge overheads they debit 48160 (its equivalent in Projects) and credit 68160 in the school, ensuring that the net balance on these accounts is nil. Then all transactions beginning with 68 or 48 can be ignored when producing the financial statements. Internal Trade nets off against expenditure.

  13. Rules: You can only use 03400 with AA to AJ codes Only use 03400 on its own. 03400 account balance must always be NIL.

  14. Budget Journals When transferring budgets within the TPA range of analysis codes (AA_AJ) it is important that the journal nets off to NIL.

  15. If the budget journal does not net off to NIL then it will be duplicated and distort the BMR Reports.

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