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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) ?.

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GENERAL LEDGER JOURNALS IN APTOS

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  1. GENERAL LEDGER JOURNALS IN APTOS Presenter: Anne Shrubshall Date: FASIG 25 May 2007

  2. PRESENTATION OVERVIEW • What is a journal? • Why do we need journals? • Audit trail • Issues for discussion • Who should create journals? • Authorisation • Journal protocols

  3. 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

  4. 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

  5. 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

  6. 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

  7. 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

  8. 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

  9. 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?

  10. How do we get a journal done? • Input by Finance Services • manually • electronically • Input it yourself DISCUSSION POINT

  11. 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

  12. 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?

  13. 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

  14. 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

  15. ANY QUESTIONS?

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