Optimizing your General Ledger

Optimize Your General Ledger

Presented by Nicole McCarroll, SiloSmashers Lori Travis and Stacey McCarver, Deltek GC-473

This session focuses on the best practices to managing your General Ledger. Topics for discussion include reconciling Labor Distribution when outsourcing payroll, benefits of using GCS Bank Reconciliation and using OBS when running Financial Statements.

Session Overview

10/13/2012 2 ©2012 Deltek, Inc. All Rights Reserved


Labor Distribution Reconciliations to GL Advantages of Reconciliation Using Bank Reconciliation module in GCS OBS and Financial Statements Summary Q&A

Agenda


There are many advantages to reconciling your timesheets/ Labor Distribution to your outsourced payroll reports. The most significant advantages are: No changes/correcting timesheets are needed because corrections are

made to the existing timesheets before they are posted. Reduces the time it takes to research discrepancies, if employees should

have payroll questions. Reduces reconciliation time substantially-the accrued salary account

balance will always be correct and will accurately reflect the amount of the next payroll to be paid.

GL accounts will not need additional reconciliations and accounts balances are accurate for annual audits.

Deltek labor/salary reports can be used from GCS Ensures all timesheets are processed properly and no timesheets are

missing

Labor and Payroll

Completed and approved timesheets must be exported from Time Collection system into GCS Upon importing an ERROR Report is produced

Errors will NOT import – timesheets must be corrected to avoid missing timesheets that have been exported from Time Collection but not showing in GCS

Warning will import but warning will need to be reviewed and corrected before the next import

When error report indicates “no conversion errors detected” or when only warnings are listed – then select import

Import Timesheets


Auto Adjust Utility

10/13/2012 ©2012 Deltek, Inc. All Rights Reserved 6


UAUTO-TS toolkit adjusts gross amount to salary amount for all timesheets with the designated date Can also auto adjusts timesheet individually in the Enter/Edit Timesheet file Properly allocates these costs to G/L Accounts from Timesheets

Auto Adjust Utility

Timesheet Edit Reports



Timesheet Edit Reports will list timesheet activity not posted to G/L When using any one of these reports for timesheet period with all employees listed and with labor costs the amount of labor dollars being posted that will match the amount of gross payroll on payroll reports




Ensure all employees have total number of hours in timesheet period (prorate gross amounts for terms or hires )

Check that the total gross dollar amount matches the Payroll gross amount

Confirm that all employees have entered the appropriate amount of time for the timesheet period (check for LWOP, terms and hires for proration)

Possible Timesheet Edit Errors

Timesheet Edit



Changes to imported timesheets should in most cases be completed with a timesheet correction in the Time Collection System

Timesheet Edit is used for: • Bonus timesheets • Timesheet corrections for prior periods • Adjust amount posted for timesheets • Adjusted salary amounts for leave payouts and severance

The amount of hours being posted will match the amount of hours being exported from Time Collection

Timesheet Edit


Prepare Payroll into outsourced payroll system Do not post Payroll until it is reconciled to the timesheet edit report If any variances are located they need to be fixed in the appropriate program (Payroll System or GCS) Once gross amounts match in both on the Payroll and timesheet edit report Payroll and Labor Distribution may be posted

Prepare Payroll and Posting


Once the Labor Distribution report is reviewed and any errors corrected and is reconciled to the gross payroll totals from the Payroll System it can be posted to the G/L Once posted to the G/L, the Gross payroll amount will balance to the Gross amount on the Payroll

Post Labor Distribution

Bank Reconciliation


Benefits When to Reconcile the Bank Statements Understanding the Flow of Data Which postings update the Bank Reconciliation File

Using GCS Bank Reconciliation


Better utilization of GCS and keeps all accounting processes in one accounting system Keeps track of transactions and corrections which helps with audits Easy implementation process Monthly Process

Bank Reconciliation Benefits


Three Journal Postings in GCS will Update the Bank Reconciliation File Payroll Journal Cash Disbursements Journal Cash Receipts Journal

Journal Postings


Adjusting Journal Entries and Prior Period Journal Entries Made to Cash Accounts are Not Posted to the Bank Rec File Entries made to cash accounts in details of the AP Voucher and in the detail of cash receipts do not post to the Bank Rec Files Entries Made to Bank Rec File Do Not Post to the General Ledger

Journal Postings

Steps to Initialize


Steps to Initialize



Add the Bank Accounts in the Bank Account File Timing and beginning cash balance Changing the beginning balance (UCHG-BRF) Bank statement Balances are not needed until reconciling the first

month’s bank statement

Steps to Initialize


Enter a Negative Record for the Total of the Outstanding Checks/Deposits This will be an Adjustment Entry (AJ) Accept this record

Print the Outstanding Items Report Compare to offline bank reconciliation Make necessary corrections

Proceed to Monthly Processing Steps

Steps to Initialize


1) Enter the Bank Statement Ending Balance in the Bank Account File and Change the Period

2) Print G/L Comparison Summary Report Print G/L Comparison Detail if not in balance

3) Accept Cleared Checks and Deposits Batch Bank Acceptance Bank Reconciliation File

4) Print Reports Outstanding Items Report Print Unmatched Items Report Print Bank Reconciliation Summary Report

To Be Reconciled: Ending Book Balance = Adjusted Bank Balance Unmatched Items = 0

Bank Rec Monthly Processing

Bank Rec Summary Report – In Balance


Optimize Financial Reporting


OBS is an alternative reporting tool that adds flexibility and customization to your Financial Reports in GCS User Defined Can be Initialized at any time Available for use on: Balance Sheet Income Statement GL Detail Report Indirect Expense Report FS Code Summary Report

Optimize Financial Reporting

Sample OBS


Initialization of OBS

Activated in the G/L Control File Select “Using Organizational

Breakdown Structure”

Select “Require OBS at Account Entry” Ensures no new accounts are

added to the Chart of Accounts File without an OBS number



Numbering the OBS

Division 1 Division 7 Division 6 Division 4 Division 2

Division 5 Division 3

Company

Commercial

PM 1

8A Federal

PM 2 PM 1 PM 2 PM 3

PM 2

PM 1 PM 1 PM 2

1.

1.1 1.3 1.2

1.1.1 1.1.2 1.1.3 1.2.1 1.2.2 1.3.1 1.3.2

1.1.1.1 1.1.1.2

1.1.2.1 1.1.2.2 1.2.2.1 1.2.2.2 1.2.2.3

1.3.2.1 1.3.2.2

Populate the OBS Levels File

Enter level numbers 1 through 6 and descriptions for each level Level 1 is the highest summary

level Level 6 would be the lowest

summary level

The descriptions identify the purpose of each level



Existing Accounts New field requirement Identify where accounts fall

within OBS structure Mass Update tool Update Range of Accounts with

Selected OBS number Chart of Accounts Mass Update

Updating the Chart of Accounts File

Income Statement by OBS


GCS has several tools that can provide you with additional flexibility and options to fully integrate all accounting functions into one system.

Conclusion


Q&A

Documents

Optimizing your General Ledger