Post on 15-Dec-2015
Conquering the GEC
You can do this!
(General Error Correction)
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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
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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 GEC GL 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 GEC GL 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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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?
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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?
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Debits must equal credits.
The KFS (Financial System) automatically generates cash offset entries.
What Are the Business Rules of the GEC?
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Asset (AS)Expense (EX)Liability (LI)Income (IN)
What are the Object Type Codes?
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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?
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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?
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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?
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Income is generated from providing a service or merchandise.
Merchandise sales are an example of income.
What Is Income?
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Asset (AS)Expense (EX)Liability (LI)Income (IN)
What are the Object Type Codes?
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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
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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 GEC
GL 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 GEC
GL 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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What Did We Learn From The General Ledger Entry?
The object type code is “EX”.
The reference number is “3164427”.
The origin code is “01”.
The transaction posted as a debit.
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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 GEC
GL 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 GEC
GL 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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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 GEC
GL 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 GEC
GL 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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General Ledger Entry: PCard Purchase with Use Tax
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General Ledger Entry: PCard Purchase with Use Tax
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General Ledger Entry: PCard Purchase with Use Tax
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Pending General Ledger Entry Removing Use Tax
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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 GEC
GL 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 GEC
GL 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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Any Questions?
Fred Pearson, CGFM
(520) 621-4757
pearsonf@email.arizona.edu
Lynda Silvain
(520) 626-5597
slynda@u.arizona.edu