v.5 General Ledger: Best Practices - Shelby Systems · Although you can grant report‐only rights...
Transcript of v.5 General Ledger: Best Practices - Shelby Systems · Although you can grant report‐only rights...
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v.5 General Ledger: Best Practices
(Course V43)
Presented by: Bill Ballou Shelby Training Manager
Objective
This class covers information that helps you uncover hidden tips & tricks to maximize the General
Ledger in Shelby v.5.
This session presents the following topics:
How to set up Company Information
What are Account Rights?
How to Export/Import Budgets
How to use Source Documents
How to work with Journal Entries
How to use Inquiry Options
Why, When, and How you can change the numbering for Accounts, Departments, Funds, or even Companies
Who closes the fiscal year?
Monthly financial reports
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Company Information
Make sure your company information is set up correctly.
1. Default Year – Select from the available years established for the company.
2. Default Period – Select from the available periods, which are established for a given year for the company.
3. Suppress Zero Balances – If selected, this prevents all accounts with a zero balance from printing on all financial reports.
4. Allow Sub‐Ledger Journal Changes – If selected, you are able to edit journal entries in General Ledger that come from other Shelby financial modules. When this option is activated, your General Ledger audit trail is not secured.
5. Create Bank Reconciliation Entries for Manual Journals – If selected, when you create a manual journal entry that includes a cash account, the system creates an item in Bank Reconciliation.
6. Show Bank Account Verification Prompt at Startup – If selected, a prompt displays stating from which bank account you are processing transactions. This provides a double check to verify that you are linked to the correct bank account.
7. Require Journal Date and Period Match – If selected, the date and period must match when you finalize sub‐ledger transactions. Manual journals must have matching dates and periods, or they cannot be saved.
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Account Rights More than likely, you are bombarded with requests from staff for individual reports. This requires you
to stop what you are doing to produce the desired report for the individual making the request.
Although you can grant report‐only rights to the individual in the General Ledger through User Security
Setup, you do not want to grant rights to every account in your General Ledger. As a default, each user
having security rights to General Ledger has access to any account information. Account rights allow
you to give access to different departments/accounts in the General Ledger based on User Login
Names and access rights.
From the Account Rights screen, double‐click the individual’s name and enter the Company, Fund(s),
Department(s), and Account# range to which that person needs access.
As you can see in the example, you can select several areas of your chart of accounts where the
individual has responsibility. The bottom portion of the screen describes to which area the individual
now has access.
With the appropriate User Account rights, individuals can now run reports for themselves ensuring
they only have access to the accounts you have designated.
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Export/Import Budgets
This procedure allows you to Export budgets from Shelby v.5 to Excel or another spreadsheet
application, make any adjustments necessary, and save the file in CSV (Comma‐Separated Values)
format. Then you use the Import option to update the budgets in Shelby v.5.
There are basic steps necessary to enter your new fiscal year budget information. First, create the new
GL year and Chart of Accounts. Run the export utility with the New Year set as the default on the home
base screen. Create the monthly budgets in Excel as desired. The exported file format should not be
altered. Do not delete or hide columns or rows. You must enter monthly values, which are
automatically added to the Annual Budget column. You must save the file in Comma‐Separated Values
format (.csv) before importing the edited budget information.
With the new year still on the GL home base screen, import budgets. The import tool automatically
opens a browser window to your data file path location or for you to browse to any file location. After
you have imported your budget, make any changes as needed.
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Source Documents Every sub‐ledger module that interfaces with the General Ledger generates a journal entry with the
appropriate debits and credits and places it in the Journal Entry screen for posting. Along with the
journal entry, the system attaches a copy of the final report from the sub‐ledger module called the
source document.
Use the Acquire/View button to scan a document associated with an entry and import (optional).
Click the Drill‐Down button to display a list of detail lines associated with this entry (after the posting is
run).
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The Source Document utility enables you to locate the sub‐ledger journal entry easily by Type, Period,
Start Date, End Date, and User.
From the Utility menu item:
Click Source Documents.
Filter by any combination of items.
Double‐click the journal entry.
Review or print source document.
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Work with Journal Entries
Journal Entries represent the detail transactions posted to the General Ledger. These may be manual journal entries, recurring journal entries that are transferred as needed, or they may be sent to the General Ledger via a sub‐ledger interface such as Accounts Payable, Check Express, Payroll, Contributions, and so forth.
The Journal Entry screen is the starting point for any journal work is done. From here you enter, edit, and update any journal entries. Also, access the recurring journals maintenance screen from this point, as well as transfer the recurring journals.
Reverse/Copy a Journal Entry
There may be times when you need to reverse a set of journal entries that are finalized. Other times
you may need to copy journals to be used again without having to retype them. When you select
Reverse, ALL entries are placed opposite in the Journal Entry screen from the way they were originally
entered. The entries could then be edited and finalized. When you select Copy, ALL entries for the journal selected are placed in the Journal Entry screen as they were originally entered. This may be
useful if you find that entries are finalized to the wrong period. In that case, you could use Reverse to
negate the entries in the incorrect period, and then use the Copy feature and change the period before
finalizing.
Using the Reverse/Copy Journal Entry utility not only saves you time but removes the possibility of
coding mistakes. Remember – WATCH TO WHAT PERIODS YOU POST!
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The following steps correct your mistakes quickly and accurately:
From the Journal Entry screen click Utility ‐> Reverse/Copy Journal Entry.
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Locate the journal entry by using the filters at the top of the screen. (In your example AP0029 is posted to November and should have been posted to December.)
Click the journal entry and then click the Reverse button at the bottom of the screen.
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Post the journal entry to the original period and date to REVERSE the entry.
Click Reverse/Copy Journal Entry again, select the same journal entry, and click the Copy
button.
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Post the journal entry to the correct period with the correct date.
Run the Edit report and Save the journal entries to the General Ledger.
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Recurring Journal Entries Many times there are journal entries that need to be made each month. These may consist of payroll
entries from an outside company, amortized expenses, mission distributions based on monthly giving,
or a host of other scenarios.
With the Recurring Journal
Entry utility, create the journal
entry one time and simply
transfer the entry for
processing without having to
enter the journal entry
manually every time the
transaction occurs.
From the Journal Entry
screen, click Utility ‐>
Recurring Journals
Information.
Right‐click and select
New to open the
Recurring Journal entry
screen.
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Enter the Journal Type (RE), Journal Description, Accounts, Debits, and Credits and then save
the entry.
Your saved recurring journal entry is added now to the list of recurring journal entries.
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From the Journal Entry screen, click Utility ‐> Transfer Recurring Journals.
Select the Period to post to, the journal Date, and the journal Type to transfer. Leaving the
journal type field blank transfers all journal types.
Next this window displays.
The recurring journal entry or entries are now ready for processing.
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Inquiry Options
The Inquiries area of General Ledger is a fantastic tool for accessing information and displaying
different aspects of that information without the need for running several reports. In addition, the
Inquiries area allows access to areas of information that normally would require the user to run
reports/inquiries from the original sub‐ledger modules.
The Inquiry Criteria screen has two distinct sections for filtering the displayed results.
The top portion (1) allows you to define the Fund, Department, Account # Range, and specific accounts by using the Include/Exclude button.
The bottom portion (2) allows you to select All Periods or a specific Period, a Start Date/End Date range based on Journal Dates, specific Journal Type, Journal #, Project, and Dollar amount range.
Use any combination of fields from the top section and bottom section based upon what information you need.
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Summary Tab (1) Across the top of the Summary tab you see four check boxes that display the selected
information. By selecting all check boxes, you see this result:
Print this report by selecting Reports ‐> Inquiry List.
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Detail Tab (2)
The Detail tab shows each transaction for the given account number within the period specified. Narrow your search for certain transactions by using the filters for journal type, reference #, and/or project.
Double‐click any detail line to see all the entries that made up the complete journal.
Use the Acquire/View button to scan a document associated with an entry and import (optional).
Click the Drill‐Down button to display the detail lines associated with this entry. This button is only active for journal entries coming from other Shelby financial modules. Once the Sub‐Ledger Drill‐Down screen displays, click the drop‐down list under the name column to see detail lines.
Click the View Source button to display the source file associated with this entry.
Print this report by selecting Reports ‐> Inquiry List.
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Drill Down Example – Click the Drill‐Down button to display the information in table format.
Right‐clicking displays a menu of options for printing the information or exporting.
When you click on the drop‐down arrow next to the name, the following screen displays the
detail information for the specific entry selected.
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Create a Graph – Use the Graph icon at the top of the screen to create a graph of the displayed information in Excel.
Excel creates a graph of the selected information automatically. Change graph types and choose whether to display the data labels.
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Work with Shelby Tools
There are other utilities for the General Ledger used less frequently but address some key areas.
From your Shelby Dashboard click the General tab and then click the Utilities module.
From the Utilities Home Base screen select the Shelby Tools option.
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From the ShelbyTOOLS screen click the Choose a Module drop‐down and select General Ledger.
Under the Utilities List there are several utilities from which to choose. Notice the description of the
utility to the right of the screen.
Before running any utility make sure you make a backup of your data. I would recommend NOT
relying on the last backup. Make a new backup before proceeding in case something happens on the
server while running the utility.
You are going to make changes to your existing Chart of Accounts by changing the account number of
an existing account (this is how to restructure your existing Chart of Accounts).
Click the Change Company #, Fund #, Department #, or Account # utility and then click the Run
button at the bottom of the screen.
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From the Change Account Structure screen select the Scope of Change? that you wish to use.
(There is even a shortcut for changing an Account # over Multiple Funds/Departments.) For this
example select the Account # radio button.
Select the Fund, Department, and Account # to change from the drop‐down lists.
Enter the Change to Department # if moving to another department and the Change to
Account # (new account #). Click the OK button at the bottom of the screen to proceed with the
change.
The following screen asks you to confirm that you want to proceed with the change above. Click
the Yes button to proceed.
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The next screen is VERY IMPORTANT, repeat, VERY IMPORTANT. Read the question carefully. The utility processes the change in one of two ways:
o Click the YES button to change the account # in ALL previous fiscal years. This is a must if
you need to maintain prior year comparison reports.
o Click the NO button to change the account # ONLY in the CURRENT fiscal year. If the
account exists only in the current fiscal year, there is no need to change it in previous
years.
o Click the CANCEL button to abort the change.
The following screen displays the change and asks if you are finished. If you have other account
numbers to change, click the NO button. When you make your final change, click the YES
button.
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The program displays a report reflecting all changes in your Chart of Accounts, one account at a
time. Print or Save the report for future reference (SAVE FOR THE AUDITOR).
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General Ledger Year‐End Closing
It is important to close each company in your General Ledger at the end of each fiscal year. Keep in mind each company may operate on a different fiscal year and close accordingly.
An opening balance is calculated for balance sheet accounts and entered for the next year.
Income and expense accounts are closed to their respective closing account numbers.
Since the system supports having multiple years, adjustments can be made to a prior year at any time after closing, and then the year‐end procedure is run to update the opening balances for the current year.
ALWAYS remember to make a DATA BACKUP before you start your Year‐End Closing!
From the Closing Procedures Home Base screen, select the company to close and then select the General Ledger Fiscal Year Closing option.
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Read the message carefully and select the Fiscal Year to Close.
You are asked whether you want to add income/expense accounts if there is an account in the current year that is not set up in the New Year. You get the same prompt for balance sheet accounts with no opening balance.
If an Income or Expense account attempts to close to an invalid or nonexistent account number, you are notified on the screen, and then an exception report is generated. A listing of accounts trying to close to an invalid account is produced, the closing procedure ends, and you are not allowed to continue until corrections are made.
You are asked if you want to mark this year as closed so that no other transactions are posted. (If you
need to make changes later, remove this flag from the Company/Year Information screen.)
A closing report displays, allowing you to review before printing.
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Financial Reports
Some of the most common financial reports include the Detail Ledger report, Balance Sheet, Budgeted
Financial Statement, and the Financial Spreadsheet.
Detail Ledger Report This report prints a list of all detail transactions for the accounting period specified or by a date range.
You may want to print this report each month to have all detail transactions on file. Print the detail
ledger for a certain account number range within a certain accounting period or date range. To print a
year‐to‐date report, specify the first period and the last period of your accounting year.
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Balance Sheet The Balance Sheet is run for a specific period but has several report layouts, including Current year
only, Current and prior year, Current and prior month, Current and beginning of year, and many
others. Select the report layout for your reporting needs. Each option box allows you to include
additional information or affect how the information displays.
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Budgeted Financial Statement The Budgeted Financial Statement is probably used more frequently. It is by far the most versatile
report of the financial reports with virtually unlimited format possibilities. This report allows you to
include budget and actual figures, variances, period figures, year‐to‐date figures, and many other
options for a specific period or quarter.
The report screen is
divided into sections
(tabs). The Parameters
tab allows you to select
the Fund(s),
Department(s),
Account(s), or Account
Range, Period or Quarter
selection, and an Excel
Interface.
The Preferences tab
allows you to select the
Report Format to run.
There are several Formats
from which to select in
the drop‐down list. Each
Format chosen displays
the columns of
information that are
included on the report
below the name of the
Format Field. You also
have the option to create
a new Report Format.
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Create formats that include specific columns of information, rename the columns using non‐accounting
terminology, and create your own formulas. Move columns up or down the list by clicking the Move
Up or Move Down buttons while the column is selected.
Notice that there is a Pipe Symbol (|) between each word in the description. It is used to force a hard
return between the words so that the name of the column is stacked one word on top of another
instead of having one long heading. The Pipe Symbol is located above the Enter key on your keyboard
and is entered by holding down the Shift key while typing the \ key.
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Financial Spreadsheet
The Financial Spreadsheet allows you to produce a report using Actual Figures, Budget Figures, or
Revised Budget Figures. Using the Actual Figures option allows you to include accounts from the
Balance Sheet as well as the Income and Expense section. Choosing one of the Budget Figure options
disables the Balance Sheet option.
The Include/Exclude button at the top left of the screen allows you to select which Fund(s) and
Department(s) are to be included. Select the Fiscal Year for your report and the Ending Period for the
report. The Ending Period identifies not only the last period on the report, but it also includes the
previous eleven periods. If it is your intention to include only the current year’s periods, make sure the
ending period is set to the last period of your fiscal year or Audit if it displays in your list.
Select the Use
actuals for
closed periods?
check box to
replace budget
columns with
actual dollars if
the month is
marked as
closed. This is
only available for
the Budget and
Revised Budget
options.
With all reports the output displays on the Print Preview screen. Print or Save the report as a PDF
Document, Comma Delimited File (CSV), Rich Text (RTF), or HTML file by clicking File ‐> Save As.
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Q&A
Class Discussion
Bill Ballou Shelby Training Manager [email protected]
Bill Ballou has been a part of the Shelby training team for over 18 years and trains on both v.5 and ShelbyNext. He greatly enjoys working with the gifted trainers on his team. Bill brings a vitality and life to training software and uses humor to help customers feel at ease with new ideas. He has helped dozens of churches find solutions to tracking financial and gifts information so they can minister more effectively. While Bill often geeks out over finding a new trick in Excel or in MS Reporting Services, his real excitement comes at that moment in training when he sees that a trainee makes a key connection and has that "ah‐ha" moment light in the eyes. Bill worked for almost twenty years on staff at various churches, so he has an appreciation for the questions and challenges of many of our users. Training is a passion for Bill, and he loves that moment when he sees knowledge and ideas transfer to another person.