Optimizing your General Ledger

Optimize Your General Ledger

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

Session Overview

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.

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

Agenda

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


Labor and Payroll

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

Import Timesheets

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


Auto Adjust Utility


Auto Adjust Utility

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


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


Possible Timesheet Edit Errors


 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)


Timesheet Edit


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


Prepare Payroll and Posting

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

Post Labor Distribution

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


Using GCS Bank Reconciliation

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


Bank Reconciliation Benefits

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


Journal Postings

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


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


Bank Rec Monthly Processing

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 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


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
1. Company

1.1 Federal 1.2 Commercial 8A
1.3

Division 2 Division 4
Division 3 Division 6 Division 7
Division 1 Division 5

1.1.1 1.1.2 1.1.3 1.2.1 1.2.2 1.3.1 1.3.2

PM 1 PM 2 PM 1 PM 2 PM 3

1.1.2.1 1.1.2.2 1.2.2.1 1.2.2.2 1.2.2.3

PM 1 PM 2 PM 1 PM 2

1.1.1.1 1.1.1.2 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


Updating the
Chart of Accounts File
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


Income Statement by OBS


Conclusion

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


Optimizing your General Ledger

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