GENERAL LEDGER JOURNALS IN APTOS

GENERAL LEDGER JOURNALS IN

APTOS

Presenter: Anne Shrubshall

Date: FASIG 25 May 2007

PRESENTATION OVERVIEW

What is a journal?

Why do we need journals?

Audit trail

Issues for discussion Who should create journals?

Authorisation

Journal protocols

What is a journal (1) ? Vouchers

All transactions in Aptos are held within vouchers

Vouchers contain the double entries (debits and

credits) that underpin all accounting systems

Vouchers are generated as part of transactional

processing

sales ledger

purchase ledger

cash receipting

What is a journal (2) ? Vouchers can also be created manually

These are then called journals

A journal can be input against any ledger

Purchase ledger journal

Sales ledger journal

Cash book journal

General ledger journal

What is general ledger journal?

A voucher which creates a transaction manually

on a general ledger code

Each journal must contain at least one:

Debit entry

Credit entry

The total of debits must equal the total of credits

Transaction type on reports - GLJ

Debits and credits

Debits

What is a debit (DR):

Debit entries appear as positive (no

brackets) on transaction reports

Expenditure is shown as a debit

A debit entry increases expenditure

A debit entry reduces income

Debits and credits

Credits

What is a credit (CR):

Credit entries appear as negative (with

brackets) on transaction reports

Income is shown as a credit

A credit entry increases income

A credit entry reduces expenditure

Why do we need journals?

Correcting errors – one to one entries

Making allocations – one to many entries

Year end entries – across years

Accruals

Prepayments

Accrued/deferred income

Audit trail

A journal derives from outside Aptos

How do I know it is a journal

Transaction type GLJ

Reference should begin J

From transaction back to source documentation

Who did it?

When?

Why?

How do we get a journal done?

Input by Finance Services

manually

electronically

Input it yourself

DISCUSSION POINT

Risks of devolved input

Incorrect journals can cause havoc!

Distorts financial reports

Creates further incorrect entries

Have to be a detective to sort it out

• Can be a mechanism to hide fraud• External auditors now take a download of all our

journal entries

Minimising Risk - Authorisation

Request to Finance Services• Journal request form (needs revising)• Email• Spreadsheet

Devolved input• Only one person involved?• Authorisation outside the system?• Authorisation within Aptos?

Minimising Risk - Journal protocols

General• Approval to input journals• Training

Detail for journals• Header record• Reference system• Narrative• Source documentation• Correction/reversal of previous journals

Where do we go from here?

Gather information - questionnaire

Test out system authorisation

Draw up protocols

Revise journal request form

Design spreadsheet template for bulk journals

Guidance on web

ANY QUESTIONS?