Essentials: General Journal Analysis Contents

Page Analytic Name

Suspicious general journals: Entered on the weekend 3 GJ Analytic 01 Suspicious general journals: Round thousand amounts 5 GJ Analytic 02 General journal narrations with suspicious words 7 GJ Analytic 03 General journals created and approved by the same user 9 GJ Analytic 04 General ledger accounts created in the last three months 11 GJ Analytic 05 Frequently reversed general journals 13 GJ Analytic 06 General journals posted to the prior fiscal period 15 GJ Analytic 07 General journals to accounts inactive for more than six months 17 GJ Analytic 08 Potential duplicate general journals: same general ledger account and same amount 19 GJ Analytic 09 Potential duplicate general journals: same general ledger account and same description 21 GJ Analytic 10 Potential duplicate general journals: same description and same amount 23 GJ Analytic 11 Number of general journals to general ledger accounts 25 GJ Analytic 12 General journals summarized by general ledger account per month and per company code 27 GJ Analytic 13 Analysis of general ledger accounts by general journal type 29 GJ Analytic 14 Analysis of general ledger accounts per general journal poster 31 GJ Analytic 15 General journal entries posted for a selected general ledger account 33 GJ Analytic 16 Version 6.2.0 – 2019/04 ACCOUNTS PAYABLE

Suspicious General Journals: Entered On The Weekend GL_ANALYTIC_01_GLCS102 Identifies general journals entered on the weekends

Essentials – General Journal Analysis Page 3 Suspicious General Journals: Entered On The Weekend

Context Risk It is expected that accounting Inaccurate and/or invalid general journals processed. transactions are processed during normal business Procedure hours. When general Identifies general journals entered on the weekends. journals are processed over weekends it raises a concern Analytic Logic regarding the validity of the Extracts general journals that have a system entry date corresponding to a Saturday or journal and should be Sunday. The analytic identifies the entry date of the journals in the ERP system, not the investigated. posting date.

Output Results Fields

Company Code Company Name GL Account GL Account Description Document Type Document Number

Document Text Line Number Debit Credit Document Date Amount in Reporting Currency

Amount in Document Currency Date Entered Posting Date Day of the Week Create User ID

Create User Name Fiscal Period Transaction Code Fiscal Year Report Currency Document Currency

Transaction Code Description

Output Visualization Examples

Value heatmap by user and GL account

Weekend GL postings by user

Essentials | General Journal Analysis | GL_ANALYTIC_01_GLCS102 PAGE 4 Page 4 Suspicious General Journals: Round Thousand Amounts GL_ANALYTIC_02_GLCS103 Identifies general journals with values that are round thousand amounts

Essentials – General Journal Analysis PAGE 5 Page 5 Suspicious General Journals: Round Thousand Amounts

Risk Context Inaccurate and/or invalid general journals processed. According to accounting best practice, general journals Procedure should be kept to a minimum. Identifies general journals with values that are round thousand amounts (e.g. 245,000). Journals with round thousand amounts creates suspicion Analytic Logic regarding the accuracy and Extracts all general journals and identifies those which are rounded to the nearest thousand. validity of the general journal.

Output Results Field Names

Company Code Company Name GL Account GL Account Description Document Type

Document Number Document Text Line Number Debit Credit Document Date Date Entered

Amount in Reporting Currency Amount in Document Currency Posting Date Create User ID Fiscal Year

Create User Name Approver User ID Fiscal Period Transaction Code Document Currency

Report Currency Transaction Code Description

Output Visualization Examples

Total amount of postings by posting date and posting user

Total journal amount by users over time

Essentials | General Journal Analysis | GL_ANALYTIC_02_GLCS103 Page 6 General Journal Narrations With Suspicious Words GL_ANALYTIC_03_GLCS105 Identifies general journal narrations that use potentially suspicious words as defined during implementation

Essentials – General Journal Analysis PAGE 7 Page 7 General Journal Narrations With Suspicious Words

Risk Inaccurate and/or invalid general journals processed. Context Statistics regarding general Procedure journal wording can assist Identifies general journals with suspicious narrations. with identifying potential fictitious journals and/or Analytic Logic incorrect processing. Extracts all general journals and searches for suspicious standard words such as “miscellaneous”, “general”, additional customer suspicious narrations and blank narrations.

Output Results Field Names

Company Code Company Name GL Account GL Account Description Document Type Document Text

Document Number Line Number Amount in Reporting Currency Debit Credit Report Currency

Document Currency Amount in Document Currency Posting Date Create User ID Fiscal Year

Create User Name Approver User Name Approver User ID Transaction Code Transaction Code Description

Document Date Date Entered Fiscal Period

Output Visualization Examples

Total value of suspicious word exceptions by GL account

Total suspicious word values per GL account

Essentials | General Journal Analysis | GL_ANALYTIC_03_GLCS105 PAGE 8 Page 8 General Journals Created And Approved By The Same User GL_ANALYTIC_04_GLCS106 Identifies general journals created and approved by the same user

Essentials – General Journal Analysis PAGE 9 Page 9 General Journals Created And Approved By The Same User

Risk Context Inaccurate and/or invalid general journals processed as a result of poor segregation of duties. Any accounting process requires adequate Procedure segregation of duties Identifies general journals created and approved by the same user. between creation and approval of transactions. Analytic Logic Instances where general Extracts all general journals and identifies where the creator and approver of the general journals were created and journal are the same user. approved by the same user should be investigated to ensure accuracy and validity.

Output Results Field Names

Company Code Company Name GL Account GL Account Description Document Type Document Number

Document Text Line Number Report Currency Amount in Reporting Currency Document Currency

Amount in Document Currency Debit Credit Create User ID Create User Name Approver User ID

Approver User Name Fiscal Period Transaction Code Transaction Code Description Fiscal Year

Document Date Date Entered Posting Date

Output Visualization Examples

Value of journals created and approved by the same user

Exceptions listed by date, user and value

Essentials | General Journal Analysis | GL_ANALYTIC_04_GLCS106 Page 10 General Ledger Accounts Created In The Last Three Months GL_ANALYTIC_05_GLCS107 Extracts all general ledger accounts which were created in the last three months

Essentials – General Journal Analysis PAGE 11 Page 11 General Ledger Accounts Created In The Last Three Months

Risk Context Unapproved and invalid general ledger accounts. Newly created general ledger accounts should be Procedure investigated to confirm Extracts all general ledger accounts which were created in the last three months. authenticity. Unapproved and invalid accounts may lead to Analytic Logic suspicious and/or fraudulent Extracts all accounts and identifies those created in the three months prior to the date of activity. analysis execution.

Output Results Field Names

Company Code Company Name GL Account GL Account Description Create Date Create User ID

Create User Name Document Date Document Text

Output Visualization Examples

Quantity of GL accounts created per user

Number of GL accounts created per user

Essentials | General Journal Analysis | GL_ANALYTIC_05_GLCS107 PAGE 12 Page 12 Frequently Reversed General Journals GL_ANALYTIC_06_GLCS112 Identifies general journals that have been raised and reversed more than twice using the same general ledger account and amount

Essentials – General Journal Analysis PAGE 13 Page 13 Frequently Reversed General Journals

Risk Inaccurate and/or invalid general journals processed. Context According to accounting best Procedure practice, general journals Identifies general journals that have been raised and reversed more than twice using the same should be kept to a minimum. general ledger account and amount. Frequently reversed general Summarises on general ledger account and absolute amount for that line and where this has a journals raise a concern count of more than 2 (3 or more), the journals are flagged for the results. regarding the authenticity and accuracy of the journal(s) and Analytic Logic should be investigated. Extracts general journals and identifies those raised and reversed more than twice to the same general ledger account and absolute amount.

Output Results Field Names

Company Code Company Name GL Account GL Account Description Create User ID

Create User Name Credit Debit Amount in Reporting Currency Report Currency

Amount in Document Currency Document Currency

Output Visualization Examples

Reversed journals listed by quantity and user

Reversed journals by GL account and user name

Essentials | General Journal Analysis | GL_ANALYTIC_06_GLCS112 Page 14 General Journals Posted To The Prior Fiscal Period GL_ANALYTIC_07_GLCS115 Identifies general journals posted to the prior and closed fiscal period to the current open period

Essentials – General Journal Analysis PAGE 15 Page 15 General Journals Posted To The Prior Fiscal Period

Risk Context Untimely cut-off when processing general journals. Accurate reporting of financial result dictate the importance Procedure of general journals being Identifies general journals posted to the prior fiscal period. processed to the correct Once a fiscal year is closed and the financial statements signed off, there should be no financial period. This analytic adjustments made to that financial year. verifies that the correct cut-off procedures are in place and Analytic Logic executed. Extracts all journal entries made in the current period, and identifies those that affect a prior fiscal period.

Output Results Field Names

Company Code Company Name GL Account GL Account Description Document Type

Document Number Document Text Line Number Amount in Reporting Currency Debit Credit

Report Currency Amount in Document Currency Document Date Date Entered Posting Date

Create User ID Create User Name Approver User ID Approver User Name Document Currency

Fiscal Year Previous Period Posting Transaction Code Transaction Code Description Fiscal period Output Visualization Examples

Exceptions listed by value, user and description

Quantity of exceptions grouped by approver

Essentials | General Journal Analysis | GL_ANALYTIC_07_GLCS115 Page 16 General Journals To Accounts Inactive For More Than Six Months GL_ANALYTIC_08_GLCS116 Identifies general journals to general ledger accounts inactive for more than six months

Essentials – General Journal Analysis Page 17 General Journals To Accounts Inactive For More Than Six Months Risk Context Inaccurate and/or invalid general journals processed. General journals processed to inactive accounts should Procedure be investigated to ensure the Identifies general journals to general ledger accounts inactive for more than six months. accuracy and validity of the journals. It could also Analytic Logic indicate possible suspicious Extracts general journals posted to an account which was inactive for a period equal or greater and/or fictitious transactions. than 180 days.

Output Results Field Names

Company Code Company Name GL Account GL Account Description Document Type Document Text

Document Number Line Number Amount in Reporting Currency Debit Credit Report Currency

Document Currency Document Date Date Entered Posting Date Create User ID Create User Name

Approver User ID Approver User Name Fiscal Period Transaction Code Amount in Document Currency

Transaction Code Description Fiscal Year

Output Visualization Examples

Quantity of exceptions grouped by GL account and posting date

Quantity of exceptions grouped by approver

Total amount of exceptions by amount including entry date

Essentials | General Journal Analysis | GL_ANALYTIC_08_GLCS116 Page 18 ACCOUNTS PAYABLE

Potential Duplicate General Journals: Same General Ledger Account & Same Amount GL_ANALYTIC_09_GLCS101 Identifies potential duplicate general journals with the same general ledger account and same amount

Essentials – General Journal Analysis Page 19 Potential Duplicate General Journals: Same General Ledger Account & Same Amount

Context Risk Inaccurate and/or invalid general journals processed. According to accounting best practice, general journals should be kept to a minimum. Procedure When duplicate general Identifies potential duplicate general journals with the same general ledger account and same journals are identified it raises amount. a concern regarding the accuracy of accounting Analytic Logic processes as well as the Extracts all general journals and identifies potential exceptions by checking for duplicates on validity of the general journal general ledger account number and the reporting currency amount of the journal. itself.

Output Results Field Names

Company Code Company Name GL Account GL Account Description Document Type

Document Number Document Text Line Number Debit Credit Amount in Reporting Currency

Amount in Document Currency Document Date Date Entered Posting Date Create User ID

Create User Name Approver User ID Approver User Name Fiscal Period Transaction Code

Transaction Code Description Fiscal Year Report Currency Document Currency

Output Visualization Examples

Total amount of journal and posting date

Heat map of total amount by GL Account

Essentials | General Journal Analysis | GL_ANALYTIC_09_GLCS101 Page 20 Potential Duplicate General Journals: Same General Ledger Account & Same Description GL_ANALYTIC_10_GLCS113 Identifies potential duplicate general journals which are to the same general ledger account and have the same description

ACL ESSENTIALS – GENERAL JOURNAL ANALYSIS Essentials – General Journal Analysis PAGE 21 Page 21 Potential Duplicate General Journals: Same General Ledger Account And Same Description Risk Context Inaccurate and/or invalid general journals processed. According to accounting best practice, general journals Procedure should be kept to a minimum. Identifies potential duplicate general journals which are to the same general ledger account When duplicate general and have the same description. journals are identified it raises a concern regarding the Analytic Logic accuracy of accounting Extracts all journals and identifies potential exceptions by analyzing for duplicates on the processes as well as the general ledger account number and the general journal description. validity of the general journal itself.

Output Results Field Names

Company Code Company Name GL Account GL Account Description Document Type Document Text

Document Number Line Number Debit Credit Amount in Reporting Currency Document Currency

Report Currency Amount in Document Currency Document Date Date Entered Posting Date

Create User ID Create User Name Approver User ID Approver User Name Fiscal period

Transaction Code Transaction Code Description Fiscal Year

Output Visualization Examples

Potential duplicates summarised by GL account

Potential duplicates by value, GL account and description

Essentials | General Journal Analysis | GL_ANALYTIC_10_GLCS113 Page 22 Potential Duplicate General Journals: Same Description And Amount GL_ANALYTIC_11_GLCS114 Identifies potential duplicate general journals which have the same amount and have the same description

Essentials – General Journal Analysis Page 23 Potential Duplicate General Journals: Same Description And Amount

Context Risk Inaccurate and/or invalid general journals processed. According to accounting best practice, general journals Procedure should be kept to a minimum. Identifies potential duplicate general journals which have the same amount and have the same When duplicate general description. journals are identified it raises a concern regarding the Analytic Logic accuracy of accounting Extracts all general journals and identifies those with the identical general journal description processes as well as the and amount. validity of the general journal itself.

Output Results Field Names

Company Code Company Name Document Text GL Account Description GL Account

Credit Debit Amount in Reporting Currency Report Currency Amount in Document Currency

Document Currency Create User ID Create User Name

Output Visualization Examples

Potential duplicate values by creating user and GL account

Quantity of exceptions by GL account & description

Essentials | General Journal Analysis | GL_ANALYTIC_11_GLCS114 Page 24 Number Of General Journals To General Ledger Accounts GL_ANALYTIC_12_GLCS104 Reports the number of general journals to general ledger accounts

Essentials – General Journal Analysis Page 3 Number Of General Journals To General Ledger Accounts Risk Context Inaccurate and/or invalid general journals processed. The number of general journals processed provides Procedure valuable information for Reports the number of general journals to general ledger accounts. management purposes. This This report can be used to identify: can be used to verify • accounts to which general journals have been posted but should not have been posted such accuracy and validity, such as as bank accounts or creditors; or the number of journals • high risk accounts with very high volumes of general journals. compared with those expected and/or processed in Analytic Logic the previous period. Extracts all general journal entries and provides an analysis of the number or volume of general journals to general ledger accounts.

Output Results Field Names

Company Code Company Name GL Account GL Account Description Count

Sum Absolute Amount Amount in Reporting Currency Report Currency Debit Credit

Output Visualization Examples

Total value of exceptions by GL account and date

Total amount per GL account and date

Essentials | General Journal Analysis | GL_ANALYTIC_12_GLCS104 Page 26 General Journals Summarized By General Ledger Account Per Month And Per Company Code GL_ANALYTIC_13_GLCS111 Reviews the total value of general journals to the general ledger accounts per month and per company code

Essentials – General Journal Analysis Page 27 General Journals Summarized By General Ledger Account Per Month Risk And Per Company Code Context Inaccurate and/or invalid general journals processed. Number and value of general Procedure journals processed provides Reviews the total value of general journals to the general ledger accounts per month and per valuable information for company code. management purposes. A This is not intended to recalculate a trial balance as it is only analyzing general journals, but it further split per general does provide a useful perspective on what accounts are materially valued using general ledger account and company journals. code further assist with analysis of journals Analytic Logic processed and verifies Extracts journal entries and provides a monthly analysis of the general journal amounts accuracy and validity. (positives for debits and negatives for credits) posted to all affected general ledger accounts.

Output Results Field Names

Company Code Company Name GL Account GL Account Description Report Amount Month 1

Report Amount Month 2 Report Amount Month 3

Output Visualization Examples

Statistics of a GL account per entity and time period

Summary table per GL account per company code and month

Essentials | General Journal Analysis | GL_ANALYTIC_13_GLCS111 Page 28 Analysis Of General Ledger Accounts By General Journal Type GL_ANALYTIC_14_GLCS108 Listing of general ledger accounts by which general journal types are posted through those accounts

ACL ESSENTIALS – GENERAL JOURNAL ANALYSIS Essentials – General Journal Analysis PAGE 29 Page 29 Analysis Of General Ledger Accounts By General Journal Type Risk Inaccurate and/or invalid general journals processed. Procedure Context Listing of general ledger accounts by which general journal types are posted through those Regular investigation should accounts. occur of general ledger Depending on the entity, journal types are intended for specific types of transactions such as accounts containing general raising of accruals using one type and the subsequent reversal with another and this report journals to ensure accuracy can aid in ensuring such practices are followed. and validity of these journals. Analytic Logic Extracts general journal entries and provides an analysis of the type of general journals.

Output Results Field Names

Company Code Company Name GL Account GL Account Description Transaction Code Report Currency

Transaction Code Description Amount in Reporting Currency Count Credit Debit

Output Visualization Examples

GL account grouping of journal types

GL account grouping of journal types

Essentials | General Journal Analysis | GL_ANALYTIC_14_GLCS108 Page 30 Analysis Of General Ledger Accounts Per General Journal Poster GL_ANALYTIC_15_GLCS109 Listing of general ledger accounts by the user posting general journals to that account

Essentials – General Journal Analysis Page 31 Analysis Of General Ledger Accounts Per General Journal Poster Risk Context Unapproved and invalid general ledger accounts. Regular investigation should Procedure occur of general ledger Listing of general ledger accounts by the user posting general journals to that account. accounts containing general This report can be used to validate the finance users who should correctly be posting general journals to confirm that these journals and those users who are incorrectly posting, such as operations staff. journals were processed by someone authorised to process general journals; Analytic Logic while verifying the accuracy Extracts journal entries and provides an analysis of the users posting general journals. and validity of the journals.

Output Results Field Names

Company Code Company Name GL Account GL Account Description Amount in Reporting Currency

Create User ID Create User Name Count Credit Debit Report Currency

Output Visualization Examples

Heatmap of amount by user and GL account

Count of GL accounts by user

Essentials | General Journal Analysis | GL_ANALYTIC_15_GLCS109 Page 32 General Journal Entries Posted For A Selected General Ledger Account GL_ANALYTIC_16_GLCS110 Listing of general journals posted to the selected general ledger account captured in the next parameter

Essentials – General Journal Analysis Page 33 General Journal Entries Posted For A Selected General Ledger Account Risk Context Inaccurate general journal posting. The posting of journals to incorrect accounts Procedure misrepresents financial Listing of general journals posted to any specific general ledger account. reports and it is important to verify whether general Analytic Logic journals are posted to the Extracts all general journals for the selected general ledger account. correct general ledger accounts. Variables General ledger account selected.

Output Results Field Names

Company Code Company Name GL Account GL Account Description Document Type Line Number

Document Number Document Text Report Amount Debit Credit Amount in Reporting Currency

Report Currency Amount in Document Currency Document Date Date Entered Posting Date

Create User ID Create User Name Approver User ID Approver User Name Fiscal Period

Transaction Code Transaction Code Description Fiscal Year Document Currency

Output Visualization Examples

Total entry value for specified GL account

Total values per entry for a specified GL account

Essentials | General Journal Analysis | GL_ANALYTIC_16_GLCS110 Page 34