Conquering the GEC You can do this! (General Error Correction)

2 Understanding the “To” and “From” Lines When to use a General Error Correction Advantage of using the General Error Correction Business Rules Understanding Object Type Codes Making sense of the General Ledger Agenda

3 Do I Use the “To” or “From” Line? Object Type Code=Asset or Expense (Petty cash, Pcard purchase) You want to increase an amount Use “To” Line on GECGL Pending Entry Debit Credit Code=D Object Type Code=Asset or Expense (Petty cash, Pcard purchase) You want to decrease an amount Use “From” Line on GECGL Pending Entry Debit Credit Code=C Object Type Code=Liability or Income (Deposits, Sales) You want to increase an amount Use “To” Line on GECGL Pending Entry Debit Credit Code=C Object Type Code=Liability or Income (Deposits, Sales) You want to decrease an amount Use “From” Line on GECGL Pending Entry Debit Credit Code=D Income object codes start with “0” Liability object codes start with “9” Asset object codes start with “8” Expense object codes start with everything else

4 The GEC is the document to use when correcting a transaction that contains an error. (e.g. wrong account or object code) When Do I Use The GEC?

5 The GEC references the original document number. This unique data element preserves and maintains an audit trail from one transaction to another. Why Should I Use a GEC?

6 Debits must equal credits. The KFS (Financial System) automatically generates cash offset entries. What Are the Business Rules of the GEC?

7 Asset (AS) Expense (EX) Liability (LI) Income (IN) What are the Object Type Codes?

8 An Asset is a resource that is convertible to cash (cash itself is also an asset). The inventory at the Bookstore is a type of asset. What Is An Asset?

9 An Expense is an outflow of money or asset to another individual or company as payment for an item or service. The purchase of the an item for the inventory at the Bookstore is a type of expense. What Is An Expense?

10 A liability is an obligation that is expected to result in an outflow of an asset. A key deposit that could be returned to a customer is a liability. What Is A Liability?

11 Income is generated from providing a service or merchandise. Merchandise sales are an example of income. What Is Income?

12 Asset (AS) Expense (EX) Liability (LI) Income (IN) What are the Object Type Codes?

13 We can find the Object Type Code. We can find the Reference Number required for the GEC. We can find the Origin Code required for the GEC. We can see whether the transaction posted as a Debit or a Credit. What Can We Learn From The General Ledger Entry?

*Reference Number

15 Do I use the “To” or “From” Line? Object Type Code=Asset or Expense (Petty cash, Pcard purchase) You want to increase an amount Use “To” Line on GECGL Pending Entry Debit Credit Code=D Object Type Code=Asset or Expense (Petty cash, Pcard purchase) You want to decrease an amount Use “From” Line on GEC GL Pending Entry Debit Credit Code=C Object Type Code=Liability or Income (Deposits, Sales) You want to increase an amount Use “To” Line on GECGL Pending Entry Debit Credit Code=C Object Type Code=Liability or Income (Deposits, Sales) You want to decrease an amount Use “From” Line on GEC GL Pending Entry Debit Credit Code=D Income object codes start with “0” Liability object codes start with “9” Asset object codes start with “8” Expense object codes start with everything else

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24 What Did We Learn From The General Ledger Entry? The object type code is “EX”. The reference number is “ ”. The origin code is “01”. The transaction posted as a debit.

25 Do I use the “To” or “From” Line? Object Type Code=Asset or Expense (Petty cash, Pcard purchase) You want to increase an amount Use “To” Line on GECGL Pending Entry Debit Credit Code=D Object Type Code=Asset or Expense (Petty cash, Pcard purchase) You want to decrease an amount Use “From” Line on GEC GL Pending Entry Debit Credit Code=C Object Type Code=Liability or Income (Deposits, Sales) You want to increase an amount Use “To” Line on GECGL Pending Entry Debit Credit Code=C Object Type Code=Liability or Income (Deposits, Sales) You want to decrease an amount Use “From” Line on GEC GL Pending Entry Debit Credit Code=D Income object codes start with “0” Liability object codes start with “9” Asset object codes start with “8” Expense object codes start with everything else

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31 Do I use the “To” or “From” Line? Object Type Code=Asset or Expense (Petty cash, Pcard purchase) You want to increase an amount Use “To” Line on GECGL Pending Entry Debit Credit Code=D Object Type Code=Asset or Expense (Petty cash, Pcard purchase) You want to decrease an amount Use “From” Line on GEC GL Pending Entry Debit Credit Code=C Object Type Code=Liability or Income (Deposits, Sales) You want to increase an amount Use “To” Line on GECGL Pending Entry Debit Credit Code=C Object Type Code=Liability or Income (Deposits, Sales) You want to decrease an amount Use “From” Line on GEC GL Pending Entry Debit Credit Code=D Income object codes start with “0” Liability object codes start with “9” Asset object codes start with “8” Expense object codes start with everything else

32 General Ledger Entry: PCard Purchase with Use Tax

33 General Ledger Entry: PCard Purchase with Use Tax

34 General Ledger Entry: PCard Purchase with Use Tax

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36 Pending General Ledger Entry Removing Use Tax

37 Do I use the “To” or “From” Line? Object Type Code=Asset or Expense (Petty cash, Pcard purchase) You want to increase an amount Use “To” Line on GECGL Pending Entry Debit Credit Code=D Object Type Code=Asset or Expense (Petty cash, Pcard purchase) You want to decrease an amount Use “From” Line on GEC GL Pending Entry Debit Credit Code=C Object Type Code=Liability or Income (Deposits, Sales) You want to increase an amount Use “To” Line on GECGL Pending Entry Debit Credit Code=C Object Type Code=Liability or Income (Deposits, Sales) You want to decrease an amount Use “From” Line on GEC GL Pending Entry Debit Credit Code=D Income object codes start with “0” Liability object codes start with “9” Asset object codes start with “8” Expense object codes start with everything else

38 Any Questions? Fred Pearson, CGFM (520) Lynda Silvain (520)