Essentials: General Journal Analysis

Essentials:

General Journal

Analysis

ContentsPage Analytic Name

3 Suspicious general journals: Entered on the weekendGJ Analytic 01

5 Suspicious general journals: Round thousand amountsGJ Analytic 02

7 General journal narrations with suspicious wordsGJ Analytic 03

9 General journals created and approved by the same userGJ Analytic 04

11 General ledger accounts created in the last three monthsGJ Analytic 05

13 Frequently reversed general journalsGJ Analytic 06

15 General journals posted to the prior fiscal periodGJ Analytic 07

17 General journals to accounts inactive for more than six monthsGJ Analytic 08

19 Potential duplicate general journals: same general ledger account and same amountGJ Analytic 09

21 Potential duplicate general journals: same general ledger account and same descriptionGJ Analytic 10

23 Potential duplicate general journals: same description and same amountGJ Analytic 11

25 Number of general journals to general ledger accountsGJ Analytic 12

27General journals summarized by general ledger account per month and per company

codeGJ Analytic 13

29 Analysis of general ledger accounts by general journal typeGJ Analytic 14

31 Analysis of general ledger accounts per general journal posterGJ Analytic 15

33 General journal entries posted for a selected general ledger accountGJ Analytic 16

Version 6.2.0 – 2019/04

Suspicious General Journals:

Entered On The WeekendGL_ANALYTIC_01_GLCS102

Identifies general journals entered on the weekends

ACCOUNTS PAYABLE

Essentials – General Journal Analysis

ContextIt is expected that accounting

transactions are processed

during normal business

hours. When general

journals are processed over

weekends it raises a concern

regarding the validity of the

journal and should be

investigated.

RiskInaccurate and/or invalid general journals processed.

ProcedureIdentifies general journals entered on the weekends.

Analytic LogicExtracts general journals that have a system entry date corresponding to a Saturday or

Sunday. The analytic identifies the entry date of the journals in the ERP system, not the

posting date.

Suspicious General Journals: Entered On The Weekend

Output Results Fields

Output Visualization Examples

PAGE 4

Company Code Company Name GL Account GL Account Description Document Type

Document Text Line Number Debit Credit Amount in Reporting Currency

Amount in Document Currency

Document Date

Date Entered Posting Date Day of the Week Create User ID

Create User Name Fiscal Period Transaction Code Fiscal Year

Document Number

Value heatmap by user and

GL account

Weekend GL postings by

user

Report Currency Document Currency

Transaction Code Description

Essentials | General Journal Analysis | GL_ANALYTIC_01_GLCS102


Suspicious General Journals:

Round Thousand AmountsGL_ANALYTIC_02_GLCS103

Identifies general journals with values that are round thousand amounts


ProcedureIdentifies general journals with values that are round thousand amounts (e.g. 245,000).

Analytic LogicExtracts all general journals and identifies those which are rounded to the nearest thousand.

Suspicious General Journals: Round Thousand Amounts

Output Results Field Names


ContextAccording to accounting best

practice, general journals

should be kept to a minimum.

Journals with round thousand

amounts creates suspicion

regarding the accuracy and

validity of the general journal.


Document Number Document Text Line Number Debit Credit

Amount in Reporting Currency Amount in Document Currency

Document Date Date Entered

Posting Date Fiscal YearCreate User ID

Create User Name Approver User ID Fiscal Period Transaction Code

Total amount of postings

by posting date and

posting user

Total journal amount by

users over time

Report Currency

Document Currency




General Journal Narrations

With Suspicious WordsGL_ANALYTIC_03_GLCS105

Identifies general journal narrations that use potentially suspicious words as defined during

implementation


ProcedureIdentifies general journals with suspicious narrations.

Analytic LogicExtracts all general journals and searches for suspicious standard words such as

“miscellaneous”, “general”, additional customer suspicious narrations and blank narrations.

General Journal Narrations With Suspicious Words

ContextStatistics regarding general

journal wording can assist

with identifying potential

fictitious journals and/or

incorrect processing.

PAGE 8




Document Number

Document Text

Line Number Debit Credit Report Currency

Document Currency

Document Date Date Entered

Posting Date Fiscal YearCreate User ID

Create User Name Approver User Name

Fiscal Period

Transaction Code Transaction Code Description

Total value of suspicious word

exceptions by GL account

Total suspicious word values

per GL account

Amount in Reporting Currency


Approver User ID



General Journals Created And

Approved By The Same UserGL_ANALYTIC_04_GLCS106

Identifies general journals created and approved by the same user

RiskInaccurate and/or invalid general journals processed as a result of poor segregation of duties.

ProcedureIdentifies general journals created and approved by the same user.

Analytic LogicExtracts all general journals and identifies where the creator and approver of the general

journal are the same user.

General Journals Created And Approved By The Same User

ContextAny accounting process

requires adequate

segregation of duties

between creation and

approval of transactions.

Instances where general

journals were created and

approved by the same user

should be investigated to

ensure accuracy and validity.



GL Account GL Account Description Document Type Document Number

Document Text Line Number

Debit Credit



Document Date Date Entered Posting Date

Fiscal Year

Create User ID Create User Name Approver User ID

Approver User Name Fiscal Period Transaction Code DescriptionTransaction Code

Exceptions listed by date,

user and value

Value of journals created

and approved by the same

user

Report Currency

Company Code Company Name

Document Currency



General Ledger Accounts

Created In The Last Three

MonthsGL_ANALYTIC_05_GLCS107

Extracts all general ledger accounts which were created in the last three months

RiskUnapproved and invalid general ledger accounts.

ProcedureExtracts all general ledger accounts which were created in the last three months.

Analytic LogicExtracts all accounts and identifies those created in the three months prior to the date of

analysis execution.

General Ledger Accounts Created In The Last Three Months


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

Create User Name


ContextNewly created general ledger

accounts should be

investigated to confirm

authenticity. Unapproved and

invalid accounts may lead to

suspicious and/or fraudulent

activity.

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Quantity of GL accounts created

per user

Number of GL

accounts created per

user

Document Date Document Text



Frequently Reversed General

JournalsGL_ANALYTIC_06_GLCS112

Identifies general journals that have been raised and reversed more than twice using the

same general ledger account and amount


ProcedureIdentifies general journals that have been raised and reversed more than twice using the same

general ledger account and amount.

Summarises on general ledger account and absolute amount for that line and where this has a

count of more than 2 (3 or more), the journals are flagged for the results.

Analytic LogicExtracts general journals and identifies those raised and reversed more than twice to the

same general ledger account and absolute amount.

Frequently Reversed General Journals




Frequently reversed general

journals raise a concern

regarding the authenticity and

accuracy of the journal(s) and

should be investigated.



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

Create User Name Credit Debit Amount in Reporting Currency Report Currency


Reversed journals by GL

account and user name

Reversed journals listed by

quantity and user

Document Currency



General Journals Posted To The

Prior Fiscal PeriodGL_ANALYTIC_07_GLCS115

Identifies general journals posted to the prior and closed fiscal period to the current open

period

RiskUntimely cut-off when processing general journals.

ProcedureIdentifies general journals posted to the prior fiscal period.

Once a fiscal year is closed and the financial statements signed off, there should be no

adjustments made to that financial year.

Analytic LogicExtracts all journal entries made in the current period, and identifies those that affect a prior

fiscal period.

General Journals Posted To The Prior Fiscal Period

ContextAccurate reporting of financial

result dictate the importance

of general journals being

processed to the correct

financial period. This analytic

verifies that the correct cut-off

procedures are in place and

executed.




Document Number Document Text Line Number Debit Credit

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

Create User ID Create User Name Approver User ID

Fiscal period

Approver User Name

Exceptions listed by value, user and

description

Quantity of exceptions grouped

by approver


Fiscal Year Previous Period Posting Transaction Code Transaction Code Description

Document Currency



General Journals To Accounts

Inactive For More Than Six

MonthsGL_ANALYTIC_08_GLCS116

Identifies general journals to general ledger accounts inactive for more than six months


ProcedureIdentifies general journals to general ledger accounts inactive for more than six months.

Analytic LogicExtracts general journals posted to an account which was inactive for a period equal or greater

than 180 days.

General Journals To Accounts Inactive For More Than Six

Months

ContextGeneral journals processed

to inactive accounts should

be investigated to ensure the

accuracy and validity of the

journals. It could also

indicate possible suspicious

and/or fictitious transactions.




Document Number

Document Text

Line Number Debit Credit Report Currency

Document Currency Document Date

Fiscal Year

Date Entered Posting Date Create User ID Create User Name

Approver User ID Fiscal PeriodApprover User Name Transaction Code


Total amount of exceptions by amount

including entry date


by approver


by GL account and posting date




ACCOUNTS PAYABLE


Potential Duplicate General

Journals: Same General Ledger

Account & Same AmountGL_ANALYTIC_09_GLCS101

Identifies potential duplicate general journals with the same general ledger account and

same amount




When duplicate general

journals are identified it raises

a concern regarding the

accuracy of accounting

processes as well as the

validity of the general journal

itself.


ProcedureIdentifies potential duplicate general journals with the same general ledger account and same

amount.

Analytic LogicExtracts all general journals and identifies potential exceptions by checking for duplicates on

general ledger account number and the reporting currency amount of the journal.

Potential Duplicate General Journals:

Same General Ledger Account & Same Amount




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

Total amount of

journal and posting

date

Heat map of total amount by

GL Account

Report Currency Document Currency


ACL ESSENTIALS –GENERAL JOURNAL ANALYSISEssentials – General Journal Analysis


Journals: Same General Ledger

Account & Same DescriptionGL_ANALYTIC_10_GLCS113

Identifies potential duplicate general journals which are to the same general ledger account

and have the same description


ProcedureIdentifies potential duplicate general journals which are to the same general ledger account

and have the same description.

Analytic LogicExtracts all journals and identifies potential exceptions by analyzing for duplicates on the

general ledger account number and the general journal description.


Same General Ledger Account And Same Description










itself.




Document Number

Document Text

Line Number Debit Credit

Report Currency Amount in Document Currency Document Date

Transaction Code

Date Entered Posting Date

Create User ID Create User Name Approver User ID Fiscal periodApprover User Name


Potential duplicates summarised by

GL account

Potential duplicates by value,

GL account and description

Amount in Reporting Currency Document Currency




Journals: Same Description And

AmountGL_ANALYTIC_11_GLCS114

Identifies potential duplicate general journals which have the same amount and have the

same description


ProcedureIdentifies potential duplicate general journals which have the same amount and have the same

description.

Analytic LogicExtracts all general journals and identifies those with the identical general journal description

and amount.


Same Description And Amount










itself.



Company Code Company Name Document Text GL Account Description GL Account

Credit Debit Amount in Reporting Currency Report Currency

Create User ID Create User NameDocument Currency

Potential duplicate values

by creating user and GL

account

Quantity of exceptions by GL

account & description



Essentials – General Journal Analysis Page 3

Number Of General Journals To

General Ledger AccountsGL_ANALYTIC_12_GLCS104

Reports the number of general journals to general ledger accounts


ProcedureReports the number of general journals to general ledger accounts.

This report can be used to identify:

• accounts to which general journals have been posted but should not have been posted such

as bank accounts or creditors; or

• high risk accounts with very high volumes of general journals.

Analytic LogicExtracts all general journal entries and provides an analysis of the number or volume of general

journals to general ledger accounts.

Number Of General Journals To General

Ledger Accounts

ContextThe number of general

journals processed provides

valuable information for

management purposes. This

can be used to verify

accuracy and validity, such as

the number of journals

compared with those

expected and/or processed in

the previous period.



Company Code Company Name GL Account GL Account Description Count

Sum Absolute Amount Report Currency Debit Credit

Total value of exceptions

by GL account and date

Total amount per GL

account and date




General Journals Summarized

By General Ledger Account

Per Month And Per Company

CodeGL_ANALYTIC_13_GLCS111

Reviews the total value of general journals to the general ledger accounts per month and

per company code


ProcedureReviews the total value of general journals to the general ledger accounts per month and per

company code.

This is not intended to recalculate a trial balance as it is only analyzing general journals, but it

does provide a useful perspective on what accounts are materially valued using general

journals.

Analytic LogicExtracts journal entries and provides a monthly analysis of the general journal amounts

(positives for debits and negatives for credits) posted to all affected general ledger accounts.

General Journals Summarized By

General Ledger Account Per Month

And Per Company Code

ContextNumber and value of general

journals processed provides

valuable information for

management purposes. A

further split per general

ledger account and company

code further assist with

analysis of journals

processed and verifies

accuracy and validity.



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

Report Amount Month 2 Report Amount Month 3

Statistics of a GL account per entity

and time period

Summary table per GL account

per company code and month


ACL ESSENTIALS –GENERAL JOURNAL ANALYSISEssentials – General Journal Analysis

Analysis Of General Ledger

Accounts By General Journal

TypeGL_ANALYTIC_14_GLCS108

Listing of general ledger accounts by which general journal types are posted through those

accounts


ProcedureListing of general ledger accounts by which general journal types are posted through those

accounts.

Depending on the entity, journal types are intended for specific types of transactions such as

raising of accruals using one type and the subsequent reversal with another and this report

can aid in ensuring such practices are followed.

Analytic LogicExtracts general journal entries and provides an analysis of the type of general journals.

Analysis Of General Ledger Accounts By

General Journal Type

ContextRegular investigation should

occur of general ledger

accounts containing general

journals to ensure accuracy

and validity of these journals.


Company Code Company Name GL Account GL Account Description Transaction Code



Report Currency

Count Credit Debit

GL account grouping of

journal types

GL account grouping of

journal types



Analysis Of General Ledger

Accounts Per General Journal

PosterGL_ANALYTIC_15_GLCS109

Listing of general ledger accounts by the user posting general journals to that account


RiskUnapproved and invalid general ledger accounts.

ProcedureListing of general ledger accounts by the user posting general journals to that account.

This report can be used to validate the finance users who should correctly be posting general

journals and those users who are incorrectly posting, such as operations staff.

Analytic LogicExtracts journal entries and provides an analysis of the users posting general journals.

Analysis Of General Ledger Accounts Per

General Journal Poster

ContextRegular investigation should

occur of general ledger

accounts containing general

journals to confirm that these

journals were processed by

someone authorised to

process general journals;

while verifying the accuracy

and validity of the journals.


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

Report CurrencyCreate User ID


Create User Name Count Credit Debit

Heatmap of amount by

user and GL account

Count of GL accounts

by user


General Journal Entries Posted

For A Selected General Ledger

AccountGL_ANALYTIC_16_GLCS110

Listing of general journals posted to the selected general ledger account captured in the

next parameter


RiskInaccurate general journal posting.

ProcedureListing of general journals posted to any specific general ledger account.

Analytic LogicExtracts all general journals for the selected general ledger account.

VariablesGeneral ledger account selected.

General Journal Entries Posted For A

Selected General Ledger Account

ContextThe posting of journals to

incorrect accounts

misrepresents financial

reports and it is important to

verify whether general

journals are posted to the

correct general ledger

accounts.




Document Number Document Text

Line Number

Report Amount Debit Credit

Report Currency Amount in Document Currency Document Date

Transaction Code

Date Entered Posting Date

Create User ID Create User Name Approver User ID Fiscal PeriodApprover User Name


Total entry value for

specified GL account

Total values per entry for a

specified GL account


Document Currency


Essentials: General Journal Analysis

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