Conquering the GEC
(General Error Correction)
You can do this!
Agenda
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
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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”
Asset object codes start with “8”
Liability object codes start with “9”
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Expense object codes start with everything else
When Do I Use The GEC?
The GEC is the document to use when
correcting a transaction that contains an
error.
(e.g. wrong account or object code)
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Why Should I Use a GEC?
The GEC references the original
document number. This unique data
element preserves and maintains an audit
trail from one transaction to another.
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What Are the Business Rules of the GEC?
Debits must equal credits.
The KFS (Financial System) automatically
generates cash offset entries.
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What are the Object Type Codes?
Asset (AS)
Expense (EX)
Liability (LI)
Income (IN)
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What Is An Asset?
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.
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What Is An Expense?
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.
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What Is A Liability?
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.
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What Is Income?
Income is generated from providing a
service or merchandise.
Merchandise sales are an example of
income.
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What are the Object Type Codes?
Asset (AS)
Expense (EX)
Liability (LI)
Income (IN)
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What Can We Learn From The General Ledger Entry?
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.
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*Reference
Number
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”
Asset object codes start with “8”
Liability object codes start with “9”
15
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 origin code is “01”.
The reference number is “3164427”.
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”
Asset object codes start with “8”
Liability object codes start with “9”
25
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”
Asset object codes start with “8”
Liability object codes start with “9”
31
Expense object codes start with everything else
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”
Asset object codes start with “8”
Liability object codes start with “9”
37
Expense object codes start with everything else
Any Questions?
Lynda Silvain
Fred Pearson, CGFM
(520) 626-5597
(520) 621-4757
slynda@u.arizona.edu
pearsonf@email.arizona.edu
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