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Intacct GL Policies & Procedures | October 2015 | © 2015 Synergy Business Solutions. All rights reserved.

GENERAL LEDGER Policies & Procedures

FOR

Version Edited By Edited Dates Comments

1.0 Irene Bushnell November 2015 Baseline

BIG SKY COLLABORATION


Last Revision: October 2015 The forms and policies presented in this manual may not be the most current available. Please consult Synergy Business Solutions for the most up-to-date information. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that Synergy Business Solutions is not engaged in rendering legal, accounting or other professional services. If legal advice, accounting advice, or other professional or expert assistance is required, you should seek the services of an independent professional person. The material contained in this publication is for educational purposes only and it is not intended to be a substitute for the legal research or other work product a professional would normally perform for a client. --Adapted from a Declaration of Principles jointly adopted by a Committee of the American Bar Association and a Committee of Publishers and Associations. While all materials are carefully researched, no warranty, express or implied, is offered as to accuracy. Questions regarding the acceptability or likely effects of implementation of certain procedures in particular practice contexts should be reviewed on a case-by-case basis. Technical guidance provided herein should be read in addition to the related technical literature cited, not instead of it. This document may contain technical inaccuracies or typographical errors. Any documentation with respect to Intacct Software products is provided for information purposes only and does not extend or modify the limited warranty extended to the licensee of Intacct software products. Trademark Acknowledgments

• Intacct and Intacct Software are registered trademarks of Intacct Corporation.

• Windows, Word, Excel and Visual Basic are registered trademarks of Microsoft Corporation.

• All other products mentioned are trademarks of their respective manufacturers.

Printed in the United States of America. Copyright © Synergy Business Solutions 2015. All rights reserved.



TABLE OF CONTENTS

GENERAL LEDGER CONFIGURATION POLICIES ..................................................................... 1

Accounting Settings ..................................................................................................................... 1

Reports & Budgets ....................................................................................................................... 1

Dimension Settings ...................................................................................................................... 1

Approval Options ......................................................................................................................... 2

Advanced GL Options .................................................................................................................. 2

ACCOUNTS & ACCOUNT CATEGORIES POLICIES .................................................................. 3

Account Structure ....................................................................................................................... 3

Statistical Accounts ..................................................................................................................... 3

Account Groups ........................................................................................................................... 3

REPORTING PERIODS AND CLOSING BOOKS POLICIES ......................................................... 4

Reporting Period Policies ............................................................................................................ 4

Open and Closed Books Policies .................................................................................................. 4

Procedures for Closing Books ...................................................................................................... 5

Procedures for Reopening Books ................................................................................................ 6

BUDGETING POLICIES ........................................................................................................ 7

Overview...................................................................................................................................... 7

General Guidelines and Policies .................................................................................................. 7

GENERAL LEDGER AUDIT TRAIL ......................................................................................... 8

GL Binder Reports ........................................................................................................................ 8

Distributed Reports ..................................................................................................................... 8

JOURNALS ........................................................................................................................ 9

Overview...................................................................................................................................... 9

Module Journals .......................................................................................................................... 9

Statistical Journals ....................................................................................................................... 9

Adjustment Journals .................................................................................................................. 10

Statistical Adjustment Journals ................................................................................................. 10

GAAP Adjustment Journals........................................................................................................ 10

Tax Adjustment Journals ........................................................................................................... 10

MAINTAINING GENERAL LEDGER ACCOUNTS ..................................................................... 11

Procedures for Adding New General Ledger Accounts ............................................................. 11

General Ledger Accounts Screen .............................................................................................. 12

Procedures for Adding New Statistical Accounts ...................................................................... 14

Statistical Accounts Screen........................................................................................................ 15

Procedures for Making an Account Inactive ............................................................................. 16

Procedures for Deleting an Account ......................................................................................... 16



JOURNAL ENTRIES .......................................................................................................... 18

Overview.................................................................................................................................... 18

Procedures for Adding Journal Entries ...................................................................................... 18

Journal Entry Approval .............................................................................................................. 19

Procedures for Approving Journal Entries ................................................................................ 19

Deleting Approved Journal Entries ............................................................................................ 20

Journal Entries Screen ............................................................................................................... 21 Header Information ............................................................................................................................................ 21 Entry Defaults ..................................................................................................................................................... 22 Entries ................................................................................................................................................................. 23 Show Details ........................................................................................................................................................ 24 Customize Allocation ........................................................................................................................................... 24

Finishing Journal Entries ............................................................................................................ 25

Correcting Journal Entries ......................................................................................................... 25

Procedures for Reversing or Duplicating a Journal Entry ......................................................... 26

Procedures for Recalling Journal Entries ................................................................................... 27

RECURRING JOURNAL ENTRIES ........................................................................................ 28

Overview.................................................................................................................................... 28

Procedures for Entering Recurring Transactions ...................................................................... 28 Schedules ............................................................................................................................................................ 29 Transaction ......................................................................................................................................................... 30 Entries ................................................................................................................................................................. 31 Reviewing Recurring Journal Entries ................................................................................................................... 31

ADJUSTING ENTRIES ........................................................................................................ 32

Overview.................................................................................................................................... 32

Procedures for Entering Adjusting Entries ................................................................................ 32

STATISTICAL JOURNAL ENTRIES ....................................................................................... 33

Overview.................................................................................................................................... 33

Procedures for Entering Statistical Journal Entries ................................................................... 33

Statistical Journal Entries Screen .............................................................................................. 33

Entering Recurring Statistical Journal Entries ........................................................................... 34

Entering Statistical Adjusting Entries ........................................................................................ 34

MANAGING REVENUE SCHEDULES .................................................................................... 35

Overview.................................................................................................................................... 35

Procedures for Posting Revenue Schedules .............................................................................. 35

BUDGETS ........................................................................................................................ 36

Overview.................................................................................................................................... 36

Procedures for Importing Budget Information ......................................................................... 36

Procedures for Updating Budget Information .......................................................................... 37

Budget Information Screen ....................................................................................................... 38

Budget Account Information – Budget Screen ......................................................................... 39



Calculating New Budget Amounts ...................................................................................................................... 40

MONTH END PROCESSING ................................................................................................ 41

Month End Procedures ............................................................................................................. 41

MONTHLY PROCEDURES CHECKLIST ................................................................................. 43

APPENDIX A – HOW TO USE THIS MANUAL ........................................................................ 45

Styles ......................................................................................................................................... 45

Table of Contents ...................................................................................................................... 45

Cross References ....................................................................................................................... 45

Search and Replace ................................................................................................................... 45

GENERAL LEDGER CONFIGURATION POLICIES

File location: Intacct General Ledger Procedures_v6_Accepted Page 1

General Ledger Configuration Policies

Accounting Settings

Accounting Method

• Accounting method is set to Accrual.

GAAP and Tax

• Big Sky Collaboration has enabled both GAAP and tax adjustment journals. All entries related to GAAP or taxes will use the appropriate journal.

• BSC has not selected to enable tax codes.

Multi-currency management Multi-currency is enabled.

Transactions

• If a transaction is entered with a future GL posting date, a warning message will appear but the transaction will be allowed.

• The Enable allocation in journal entry option is checked allowing GL users to allocate journal transactions.

Reports & budgets

Financial Reports

• The Set default permissions to public option is checked. As new reports are created, permissions will be modified as needed.

• The Enable department and location titles option is checked.

• Enable reporting accounts is not checked.

Budgets The Balance sheet figures option is set to End of period.

Dimension settings

Big Sky Collaboration utilizes all 8 dimensions as well as 2 additional user defined dimensions.

• Location and Department have ENFORCE JE BALANCING checked.

• Displaying dimensions is set to Show fields in a popup box.


Intacct GL Policies & Procedures | October 2015 | © 2015 Synergy Business Solutions. All rights reserved. Page 2

Approval Options

To help ensure journal entries are recorded properly, BSC is using journal entry approvals.

• Email notifications to approvers is checked.

• Submitters cannot approve their own entries.

• The CFO is selected in the Admin approver field allowing authority to approve all emails.

• Send email notification to approvers is checked.

Journals from submodules will be approved automatically except the ones noted below.

JOURNAL APPROVER ALTERNATE APPROVER GJ--General Journal Controller CFO

IEAP--Inter Entity Accounts Payable Controller CFO

IEAR--Inter Entity Accounts Receivable Controller CFO

PYRJ--Payroll Journal Controller CFO

PPAJ–Prior Period Adjustment Journal Controller CFO

Advanced GL Options

User-defined Dimensions BSC has added the following 3 user-defined dimensions to track additional information:

Line of Business

Partner Type

Partner Dimension Relationships BSC has relationships enabled on the 3 user-defined dimensions. The priority order is as follows:

DIMENSIONS AUTO-POPULATE PRIORITY ORDER OVERRIDE Line of Business Partner Type

Partner Type Partner

Partner

Enable filtered drop-down lists between dimension relationships is not checked.

ACCOUNTS & ACCOUNT CATEGORIES POLICIES


Accounts & Account Categories Policies

Changes to the chart of accounts must be approved by the Controller. BSC uses a 4 digit account number with no subaccount. Statistical accounts use alphabetical letters.

Account Structure

The Company’s account structure numbering approach divides the accounts into the following groups:

Group Series

Asset 1000-1999

Liability 2000-2999

Equity 3000-3999

Revenue 4000-4999

Expenses:

Cost of Revenue 5000-5999

Operating Costs 6000-6999

Other Income & Expense 7000-8999

Statistical Accounts

BSC uses the following statistical accounts:

Account Description

HRBN Labor Hours-Billable, Non-Utilized

HRBU Labor Hours-Billable, Utilized

HRNN Labor Hours-Non-Billable, Non-Utilized

HRNU Labor Hours-Non-Billable, Utilized

Account Groups

BSC uses account groups for financial reporting. The ability to add or edit account groups is controlled with access rights. Only members of the CFO and Controller roles are allowed access rights.



Reporting Periods and Closing Books Policies

BSC utilizes Intacct’s closing books feature and reporting periods to assist with our internal control process. Closing the books prevents users from posting transactions to the wrong period and enables our organization to finalize financial statements.

Reporting Period Policies

BSC’s books are based on a calendar year and we do financial reporting on a monthly basis.

1. For closing and reporting purposes, there are 12 reporting periods each fiscal year that correlate to the month. For example, December of 2015 will have a starting date of 12/01/2015 and an ending date of 12/31/2015.

2. For reporting purposes only, there will be a reporting period for each quarter of the year and one reporting period for the entire year.

Open and Closed Books Policies

Following are internal control guidelines for how BSC uses Open and Closed Books in Intacct.

1. Only the CFO and Controller roles will have access to the Open Books and Close Books screens.

2. Books will normally be closed by the 10th of the month as part of the Month End Closing Checklist outlined in this procedure manual.

3. Any entries that relate to the prior month after closing will be posted to the current period unless they affect net income by more than $5,000. In this case, the Controller should be notified for approval to create the entry in the prior month.

4. All entries made to closing books will use the PPAJ – Prior Period Adjustment Journal type.

5. All entries made to closing books will include an attachment with the authorized documentation of the entry.

6. Books will not be reopened once they are closed unless there are unforeseen circumstances that justify reopening the books. The CFO and Controller must agree that it is in the best interest of the company to reopen a period that has been closed.

TIP! Use the template found in the Company Setup Checklist to import reporting periods.

REPORTING PERIODS AND CLOSING BOOKS POLICIES


Procedures for Closing Books

The following procedures outline the steps to be followed for closing a period in Intacct.

Ensure all steps in the Month End Processing starting on page 41 have been completed.

Use the Close Books screen and enter in the information to close the appropriate period.

– Leave the Entity/Entity group blank so that all entities get closed

– Select the period to be closed

– Leave the Process offline checkbox unchecked

Sign off on the last task of the Monthly Procedures Checklist located in the General Ledger binder indicating the books have been closed for the period.

Send an email to [email protected] notifying the accounting staff that the period has been closed.

mailto:[email protected]



Procedures for Reopening Books

If it has been determined that the books need reopened, the following procedures will be used.

Determine the period that needs reopened for the correcting entries and whether or not any subledgers need reopened.

Using the Open Books screen, enter in the appropriate information to reopen the appropriate period. Go to General Ledger > Open Books.

Make the correcting entries that justified reopening the Intacct books following the organization’s journal entry procedures.

Close the books back to the current period using the Close Books screen. Go to General Ledger > Close Books.

BUDGETING POLICIES


Budgeting Policies

Overview

BSC has developed the following budget policies to assist owners in making informed strategic decisions about the allocation of resources, the provision of services, and the utilization of capital assets. BSC uses a bottom-up approach allowing department managers to participate in identifying budgets needed at the department level. For each department and income & expense account, prior expense levels are reviewed and current year expenses are estimated, culminating in budget requests for the upcoming year. The budgeting process begins in August with final budgets approved for the upcoming year in December at the annual budgeting meeting.

General Guidelines and Policies

The following are policies and procedures related to the budget:

1. The Budget Committee will consist of the CFO, the Controller, 2 current BSC owners, and department managers.

2. Budget revisions are not allowed except under extenuating circumstances. All budget revisions must be approved by the Budget Committee.

3. New fiscal year budgets will be entered in Intacct no later than January 31.

4. Final budgets will be authorized and approved by the Budget Committee before being entered in Intacct.

5. Although budget documentation cannot be attached directly to a Budget in Intacct (at the time this manual was written), the approved budget spreadsheet will be scanned and kept in Intacct under Company > Open Setup > Attachments.



General Ledger Audit Trail

BSC has taken several steps to ensure procedures and process are in place for maintaining a proper audit trail. One of the processes that is critical to the completeness of an audit trail is maintaining a General Ledger binder, whether it is printed or paperless. Outlined below is BSC’s internal process as to the proper filing of General Ledger reports to help ensure a successful audit trail in the GL module of Intacct.

GL Binder Reports

At a minimum, the following reports will be printed and included in the General Ledger binder as part of BSC’s internal controls. These reports are identified throughout this manual as to when they are filed in the binder.

GL Binder Current Chart of Accounts

General Journal Reports (journal entries) General Ledger Report-Current Month Details Format Trial Balance Balance Sheet – Month End Profit & Loss – Monthly Profit & Loss by Department

Distributed Reports

The following outlines the title and distribution frequency of reports that will be generated and distributed from Intacct as part of our internal control and audit trail process.

Note: These reports are memorized and scheduled to email automatically.

Report Name Frequency Recipients Trial Balance Monthly Owners

Profit & Loss - Monthly Monthly Owners CFO Controller

Profit & Loss – 3 Year Comparison Monthly Owners CFO

YTD Budget Comparison Quarterly Owners CFO Monthly Account Managers CFO Controller

Balance Sheet – 3 Year Comparison Monthly Owners CFO Controller

JOURNALS


Journals

Overview

Every module in Intacct uses a Journal to record the transactions. Individual module journals will update the General Ledger however, if you use a module journal in a general ledger transaction, it will not update the individual module. The exception to this is Cash Management. Only the Controller role will have access rights to add a new Journal type.

Module Journals

BSC uses the following journals for transactions in Intacct.

Journal Symbol Relevant Module(s) Purpose

APJ Accounts Payable Accounts Payable Transactions

ARJ Accounts Receivable Accounts Receivable Transactions

CDJ Accounts Payable Cash Management

Cash Disbursements

CRJ Accounts Receivable Cash Management

Cash Receipts

EEJ Time & Expenses Employee Expense Transactions

GJ General Ledger General Journal Transactions

IND General Ledger Indirect Costs

IJ Inventory Inventory Transactions

OBJ General Ledger Opening Balance Transactions

PJ Purchasing Purchasing Transactions

PYRJ General Ledger Payroll Journal Transactions

RR Order Entry Revenue Recognition Transactions

Statistical Journals

BSC has setup the following statistical journal to track employee hours:


STAT Time & Expenses Statistical Entries

TIP! You can use the Journal Symbol as a filter in some standard reports as well as custom reports.



Adjustment Journals

BSC has one adjustment journal used for entering adjustments to closed periods as follows:


PPAJ General Ledger Prior Period Adjustments

Statistical Adjustment Journals

BSC has one statistical adjustment journal used for entering statistical adjustments to closed periods as follows:


PPSAJ General Ledger Prior Period Adjustments

GAAP Adjustment Journals

BSC has three GAAP adjustment journals as follows:


Consolidated_GA1 General Ledger GAAP Adjustments to BSC-USA

Consolidated_GA2 General Ledger GAAP Adjustments to BSC-Canada

Consolidated_GAE General Ledger GAAP Adjustments to Elimination Company

Tax Adjustment Journals

BSC has three Tax adjustment journals as follows:


Consolidated_TA1 General Ledger Tax Adjustments to BSC-USA

Consolidated_TA2 General Ledger Tax Adjustments to BSC-Canada

Consolidated_TAE General Ledger Tax Adjustments to Elimination Company

MAINTAINING GENERAL LEDGER ACCOUNTS


Maintaining General Ledger Accounts

Only users assigned to the Accounting role will have access rights to add new accounts in Intacct. If it is determined that a new account is needed, it must be approved by the Controller.

Procedures for Adding New General Ledger Accounts

Use this procedure to add a new Account in Intacct.

Prepare or obtain a list of the new Account(s).

Structure the account number in accordance with the account numbering scheme identified in the General Ledger Setup Policies section of this manual.

Obtain authorization from the Controller to add the new Account.

Review existing reports and account groups to ensure the new Account will be included in existing reports.

Enter the new Account information into the General Ledger Accounts screen. Refer to General Ledger Accounts Screen on page 12.

Once the Account has been added, print preview the Chart of Accounts report selecting GL Accounts in the Account Type filter.

Review the Chart of Accounts report to make sure the new Account(s) are entered correctly. If corrections or changes are needed, make the corrections and repeat this step.

Once the Chart of Accounts report is accurate, print, sign, and date it indicating it is correct.

File the Chart of Accounts report in the General Ledger binder.

Notify other staff as necessary of the new Account added and its intended use.

Verify the new account(s) are included in the existing financial statements and dimension reports. If not, make changes to the account groups or financials so the new Account will be included in reports.



General Ledger Accounts Screen

The General Ledger Accounts screen is used to set up new accounts or modify existing ones. Account Number Enter the account number according to company policy. Title Enter the Title of the account, up to a maximum of 80 characters. The Title will appear on reports, and can be typed in the account field when entering transactions rather than typing the account number. Category Select the appropriate Category for the new account. Normal balance Select Debit if the new account normally carries a debit balance or Credit if the account normally has a credit balance. Period end closing type

• Non-Closing Account – these are normally balance sheet accounts.

• Closing Account – these are usually income statement accounts.

Close into account For all closing accounts BSC will select account 3500 – Retained Earnings for the closing account. GL account alternative This option is only used for overriding the default Accounts Payable and Accounts Receivable account in Bills, Invoices and Adjustments. Unless this is a new AP or AR account, leave this field at None.



Status Active is the default Status for all accounts. When an account is Inactive, it will not appear in list screens, pick lists or drop-down lists. Dimension settings BSC requires the Department and Location be selected for all accounts. In addition, certain types of accounts should use the following guideline for additional dimensions:

• Income accounts: Project, Customer

• Employee Expense accounts: Project, Employee

• Billable accounts: Project, Customer, Vendor, Employee

Note: Verify with the Controller the standard dimension requirements are correct for all new accounts!



Procedures for Adding New Statistical Accounts

Use this procedure to add a new statistical account in Intacct.

Prepare or obtain a list of the new Statistical Account(s).

Structure the account number in accordance with the account numbering scheme identified in the General Ledger Setup Policies section of this manual.

Obtain authorization from the Controller to add the new Statistical Account.

Review existing reports and account groups to ensure the new Statistical Account will be included in existing reports.

Enter the new Statistical Account information into the Statistical Accounts screen. Refer to Statistical Accounts Screen on Page 15.

Once the Statistical Account has been added, print preview the Chart of Accounts report selecting Statistical Accounts in the Account Type filter.

Preview the Chart of Accounts report to make sure the new Statistical Account(s) are entered correctly. If corrections or changes are needed, make the corrections and repeat this step.

Once the report is accurate, print, sign, and date it indicating it is correct.

File the Chart of Accounts report in the General Ledger binder.

Notify other staff as necessary of the new Statistical Account added and its purpose.

Verify the new Statistical Account(s) are included in the existing financial statements and dimension reports. If not, make changes to the account groups or financials so the new Statistical Account will be included in reports.



Statistical Accounts Screen

The Statistical Accounts screen is used to add new or modify existing statistical accounts.

. Account Number Enter the Account Number according to company policy. Title Enter the Title of the statistical account, up to a maximum of 80 characters. The Title will appear on reports and can be typed in the account field when entering transactions rather than typing the number. Report Type BSC generally uses For the period in the Report Type for statistical accounts.

• For the period – Reports the net change for the period, similar to how income and expense accounts are reported.

• Cumulative balance – Reports the balance of the account for the period.

Sept Oct Nov

For the period 4 8 -2

Cumulative 247 255 253

Category Select the appropriate Category for the statistical account. Status Active is the default Status for BSC statistical accounts. When an account is Inactive, it will not appear in list screens, pick lists or drop-down lists. Dimension settings BSC requires the Department, Location, Project, and Employee be selected for all statistical accounts.

Note: Verify with the Controller the standard dimension requirements are correct for any new statistical account!



Procedures for Making an Account Inactive

Use the following procedures to make an account inactive.

Note: If an account is made inactive it will still appear in financial reports if the account had a balance or transactions during the time period used in the report.

Prepare or obtain a list of the accounts to be made inactive.

Obtain authorization from the Controller to make the account inactive.

In the Accounts list, select to Edit the account.

Change the Status field to Inactive.

Access the Chart of Accounts report from the General Ledger and select GL Accounts for the Account Type and All for the Status filter.

Review the report to make sure the account is listed as Inactive.

Once the Chart of Accounts report is accurate, print the report and sign and date it indicating it is correct.

File the updated Chart of Accounts report in the GL binder.

Notify other staff as necessary that the account(s) is no longer available for transactions.

Procedures for Deleting an Account

Use the following procedures for deleting an account from the account list.

Note: An account can only be deleted if no transactions are attached to the account. BSC controls who has rights to delete an account through role assignments.

Obtain authorization from the Controller to delete an account.

In the Accounts list, select Delete for the account you want to delete.

Notify other staff as necessary that the account(s) is no longer available for transactions.



Journal Entries

Overview

The Journal Entries screen is used to enter general ledger journal entries (debit and credit entries) into Intacct. The following hints and tips are helpful when using this screen:

• Group transactions of the same journal and posting date together as the entire entry will be posted to the same date and journal type.

• Data can be entered to current or future periods. If you need to create a journal entry for a closed period you must use the Adjusting Entries screen. Follow the steps outlined in Procedures for Entering Adjusting Entries found on Page 32. All submodule entries will be made in the appropriate submodule.

Procedures for Adding Journal Entries

These procedures will be used as a guideline for entering general ledger journal entries.

Gather the documentation for the journal entry.

Total the amount of the transactions and make note of the total. This will be used to verify the transaction is entered correctly.

Enter the transaction in the Journal Entries screen.

Attach the documentation to the Attachments field in the journal entry.

Once all of the detail lines are entered, verify the Debit and Credit totals on the screen match the balance you calculated.

When in balance, choose the Submit button.

TIP! Journal Entries do not post to a submodule even if you choose a submodule journal type, except for Cash Management. For example, if you use the AP account in a journal entry, the amount will not be reflected in the AP module. If you enter bank charges via a journal entry, the amount will be included on the bank register and in the bank reconciliation.

JOURNAL ENTRIES


Journal Entry Approval

BSC has implemented the journal entry approval process allowing entries to be reviewed prior to posting to the General Ledger. The process allows approvers to approve or decline each journal and add comments to explain the reason for their selection.

Note: Journal entry approvers are listed in Configure General Ledger under the Approvers section.

Procedures for Approving Journal Entries

These procedures will be used as a guideline for approving journal entries.

The Controller will receive an email that the entry was submitted.

Using the hyperlink provided in the email, or by going to the Approve Journal Entries list view, the Controller will click View to open the entry.

The Controller will view supporting documentation by clicking on the attachment, or reviewing paper copies provided by the accounting staff.

If the entry is incorrect, the Controller will make a note as to why and then decline the entry. The person submitting the entry will make the corrections and resubmit it for approval.

Note: In order to add a note when approving or declining a journal entry, you must use the Approve or Decline options from the list view.

Once the entry is approved, the person receiving the approval email will print the journal entry and file the Journal report in the General Ledger binder.

Once a Journal has been released and posted, any changes will need to be done by entering a new journal transaction using the Journal Entries screen.



Deleting Approved Journal Entries

BSC does not allow users to delete Journal Entry batches in Intacct. This is controlled with access rights as to who will or will not have access to delete journal entries. Refer to the System Manager Procedures manual for BSC’s access rights configuration in Intacct. With proper access rights, Intacct can be configured to allow deletion of Journal Entry batches. However, BSC has made the decision not to allow this feature. Having a policy of not allowing batches to be deleted helps ensure there are no gaps between journal entry batch numbers for audit purposes.

JOURNAL ENTRIES


Journal Entries Screen

The Journal Entries screen includes header information as well as detailed transaction information. The header information is used to ensure all detailed transactions are entered to the correct period and entity when applicable.

Header Information

Transaction No The transaction number is assigned automatically and cannot be edited.

Journal Select GJ-General Journal for GL journal entries, or the appropriate journal if the entry is for a different journal type. Refer to Module Journals on page 9 for BSC journal types and their purpose.

Note: If you add a journal entry from a Journal Transactions list view this field will not be displayed.

Date Enter the date of this journal entry. Make sure the date falls within the appropriate reporting period for the transactions. Reverse Date If the journal entry needs to be automatically reversed, enter the date for the reversing entry. Intacct will automatically create the reversing transaction with the entry is submitted and posted. Description



Enter the Description for the journal entry. The Description will be automatically populated in the memo field. If you’d like a different description for the memo, you can enter it in the defaults section. Comment The Comment field is an important part of a good internal control process. Whenever an existing journal entry is edited, a comment should be entered explaining the reason for the edits. Reference Number This is an optional number that allows BSC to enter a unique number for the journal entry. BSC is not using this field at this time. Source Entity This field is used for inter-entity transactions. If the entry is an IE transaction, enter the source entity in this field. Attachments BSC requires authorizing documentation for all journal entries. An attachment ID is automatically assigned when the documentation is attached. An attachment can be an email, an excel file, etc. Refer to our System Manager Policies and Procedures manual for more information about attachments.

Entry Defaults

Use the Defaults screen to enter default information you would like applied to each transaction line. Apply Defaults Use the Apply Defaults button to have defaults applied to the transaction lines.

JOURNAL ENTRIES


Entries

The Entries section is used to enter the debit and credit lines of the journal entry. Enter the information per BSC policies.

DOC This field can be used to reference any number that might relate to the journal entry line item. Currently, BSC enters a 1 in the first transaction line and Intacct will automatically increment each row as the entry is created. Account Enter the general ledger Account for posting the transaction. You can start typing either the account number or the account description and Intacct will limit the list based on the values you enter. Department Enter the Department for each transaction line. Location Enter the Location for each transaction line. Transaction Currency Enter the Transaction Currency for each transaction line. Transaction Debit/Transaction Credit Enter the Debit or Credit amount for this transaction line.

Note: You may not enter a debit and a credit amount on a single line. If you need to enter both a debit and a credit to the same account and dimensions, you must use two transaction lines.

Allocation If this amount is to be allocated, entered the appropriate Allocation code. Class Select the appropriate class for the transaction line. Memo The Memo will default from the Description in the Header section, or from the Memo field in the Defaults section if there is a value entered in the defaults section.



Show Details

The details section is used to enter additional dimension, allocation and exchange rate information. Enter the appropriate information based on BSC policies. For example, when using account 6135 – Contract Labor, you must enter a Vendor in the details section.

Customize Allocation

If a particular transaction line should be allocated, select the Allocation from the dropdown list in the Entries section. Intacct will populate the Allocation section based on the Allocation selected.

If it is necessary to override the allocation amounts calculated, click on the Customize Allocation button and the Custom Allocation screen opens allowing you to make changes.

JOURNAL ENTRIES


Finishing Journal Entries

There are several buttons in the top right hand corner of the screen that are used to complete a journal entry.

Submit Use the Submit button when you have completed the journal entry. Intacct will save the entry and close the screen. Because BSC has journal entry approvals turned on, an email notification will be sent to the controller letting them know the entry is ready for approval. Draft Use the Draft button to save the entry and close the screen. The entry will not be included in reports and will remain in draft mode until you submit the entry. Submit & New Use the Submit & New button to save the entry and remain in the screen to enter another journal transaction. Draft & New Use the Draft & New button to save the entry and remain in the screen. The entry will not be included in reports and will remain in draft mode until you submit the entry. Cancel Use the Cancel button to remove the journal entry without saving it and close the screen. More Actions Additional screen functions can be found in the More Actions dropdown list. Based on access rights, only certain users will be able to access

Correcting Journal Entries

Because BSC has activated approvals, existing journal entries cannot be edited therefore a new journal entry will need to be made to correct an existing journal entry. Intacct has features that allow you to reverse or duplicate an existing journal entry making it efficient to correct journal entries.



Procedures for Reversing or Duplicating a Journal Entry

Intacct gives users the ability to reverse or duplicate an existing journal entry. Follow the steps outlined below to reverse or duplicate a journal entry.

Select General Ledger > Journal Entry and then View Transactions next to the journal Title containing the journal entry to be reversed or duplicated.

From Journal Transactions list, select View to open the journal entry.

Once the entry is displayed, you can select either the Reverse or Duplicate button in the top right-hand corner of the screen.

If you select Reverse, the Reverse GL Entry screen opens allowing you to enter the date and description for the reversing entry.

If you select Duplicate, once the new journal entry is created, be sure to enter the date you would like for the new journal entry.

Make the necessary changes to the journal entry and then select Submit to send the journal entry through the approval process.

JOURNAL ENTRIES


Procedures for Recalling Journal Entries

When a Journal Entry has been submitted but not yet approved, it can be recalled. If the entry is recalled, the entry will be returned to Draft mode and removed from the approval screen.

Follow these steps to recall a journal entry that has been submitted but not approved.

Send an email to the Controller indicating which journal entry will be recalled.

From Journal Transactions list, select Edit to open the journal entry.

Click the Recall button.

Make the necessary changes to the journal entry.

Click the Submit button to send it back through the approval process.

The Controller will receive an email that the entry was submitted. Once the entry is reviewed for accuracy, the controller will approve the entry.

• If the entry is incorrect, the controller will make a note as to why and decline the entry. The person submitting the entry will make the corrections and resubmit it for approval.

Once the entry is approved, the person receiving the approval email will print the journal entry and file the Journal report in the General Ledger binder.



Recurring Journal Entries

Overview

Recurring transactions are ones that repeat on a regular basis for the same amount. Examples of recurring transactions include depreciation entries, amortization of prepaid expenses, automatic bank withdrawals for insurance premiums, etc.

Procedures for Entering Recurring Transactions

The following procedures will provide guidance in processing recurring transactions:

Gather the documentation for the recurring journal entry.

Total the amount of the transactions and make note of the total. This will be used to verify the transaction is entered correctly.

Enter the transaction in the Recurring Journal Entries screen.

Attach the documentation to the Attachments field in the Transaction section of the journal entry.

Once all of the detail lines are entered, verify the Debit and Credit totals on the screen match the balance you calculated.

When in balance, choose the Submit button.

The controller will receive an email that the recurring entry was submitted. Once the entry is reviewed for accuracy, the Controller will either approve or decline the recurring journal entry.

The person submitting the entry will receive an email that the entry was either rejected or approved.

• If the entry is incorrect, the controller will make a note as to why and decline the entry. The person submitting the entry will make the corrections and resubmit it for approval.

Once the recurring journal entry is approved, the person receiving the approval email will print the recurring journal entry and file the Journal report in the General Ledger binder.

Note: Recurring journal entries follow the same approval process as regular journal entries. Based on the recurring schedule, the Controller will receive an email to approve each recurring journal entry.

RECURRING JOURNAL ENTRIES


Schedules

Journal Entry Start Date Enter the starting date for the first recurring journal entry.

Note: Based on options entered in this screen, Intacct will play catch up with the recurring entry. For example, if you are in March of 2015 and you enter a monthly entry to start on January 2015, three journal entries will be created one each for January, February and March.

Ending

• Never – The journal entry will never end.

• Number of Occurrences – Choose this option and then enter the number of journal entries to be created. For example, a one year journal entry would have 12 occurrences.

• End Date – Allows you to enter a specific date when the entry should expire.

Posting Repeat Select how often the entry should be created. The options are none, days, weeks, months, or years. Once you choose the repeat value, indicate the number for the value. For example, if you wanted to create a bimonthly journal entry, you would select months and then enter 2 for every other month. Email Enter in an email address for notification of a recurring journal entry that doesn’t get created. The email will indicate the reason why the entry didn’t get created.

Note: Business users with Admin privileges can also receive notification of a failed recurring journal entry by checking the option Recurring transactions fail in My Preferences located in the Email notifications section.



Automatically Reverse This Journal Entry Select this option if the entry should be automatically reversed. When this option is used, you can control the schedule of the reversing entry independently from the original recurring journal entry if needed.

Transaction

Book Select Book(s) for which you’d like to create the recurring journal entry. Journal Select the appropriate Journal for the recurring entry. Description Enter a Description for the recurring journal entry. Reference Number BSC does not require a Reference Number but you may enter one if desired. Attachments BSC requires authorizing documentation for all journal entries. An attachment ID will automatically be assigned when the documentation is attached. An attachment can be an email, an excel file, etc. Refer to our System Manager Policies and Procedures manual for more information about attachments.

RECURRING JOURNAL ENTRIES


Entries

Refer to the Entries section on Page 23 for information regarding this section of the journal entry.

Reviewing Recurring Journal Entries

To review when information about a recurring journal entry, go to the Recurring Journal Entries list view. The list view shows posting information.

Save Click the Save button when you have completed entering the recurring journal entry.



Adjusting Entries

Overview

Adjusting Entries are used to enter correcting entries to closed books or periods. You must use an adjusting journal type when creating an adjusting entry to a closed period.

Procedures for Entering Adjusting Entries

These procedures will be used as a guideline for entering adjusting journal entries.

Gather the documentation to be used as backup for the journal adjustment (printed copy of an email, copy of an existing journal entry with notation of the changes, or other paperwork related to the entry as needed).

Obtain authorization from the Controller for the journal adjustment.

Create the journal adjustment entry in the Adjusting Entries screen using the PPAJ adjustment journal.

Attach the authorized documentation to the Attachments field in the journal entry.

Once the entry is complete, click on Submit.

The Controller (or CFO) will receive an email per the approval setup policies and either Approve or Decline the entry.

The person submitting the entry will receive an email notification as to whether the entry is approved or declined.

– If a correction is needed, the Controller (or CFO) will decline the JE and enter a comment as to why it was declined. The user who created the entry will make the correction and resubmit for approval.

Once an approval email notification is received, the user who created the entry will print the Journal Entry report and file it in the General Ledger binder.

STATISTICAL JOURNAL ENTRIES


Statistical Journal Entries

Overview

At BSC, statistical journal entries are used for tracking employee hours allowing BSC to generate employee utilization reports. Most entries are posted to statistical journals automatically via timesheet entries. If an entry is needed to correct a statistical account, the Statistical Journal Entry screen will be used for the entry.

Procedures for Entering Statistical Journal Entries

Gather the documentation to be used as backup for the statistical journal entry.

Calculate the total increase and decrease amounts for the entry.

Create the entry in the Statistical Journal Entries screen using the STAT adjustment journal.

Attach the documentation for the entry in the Attachments field.

Verify the totals balance to the totals you calculated.

Click on Submit to save and post the statistical journal entry.

Statistical Journal Entries Screen

The top portion of the screen is the same as the standard Journal Entries screen. For statistical journal entries however, rather than debits and credits you enter increases or decreases to the ledger account. Refer to Journal Entries Screen on page 21 for field definitions of the standard journal entry fields.

TIP! Statistical Journal

Entries do not flow through the approval process.



Entering Recurring Statistical Journal Entries

If a recurring statistical entry is needed, it is entered using the Recurring Statistical Journal Entries screen. This screen works the same as standard recurring journal entries screen with two exceptions. First, there is no approval process on statistical journal entries. The second difference is that statistical entries use increases and decreases in the amount fields rather than debits and credits. For descriptions of the fields in this screen, refer to Schedules on page 29. The same procedures and processes outlined in the recurring journal entry process should be followed for statistical journal entries.

Entering Statistical Adjusting Entries

If a statistical entry is needed for a closed period, it is entered using the Statistical Adjusting Entries screen. This screen works the same as the standard adjusting journal entries screen with two exceptions. First, there is no approval process on statistical journal entries. The second difference is that statistical entries use increases and decreases in the amount fields rather than debits and credits. For descriptions of the fields in this screen, refer to Adjusting Entries on Page 32. The same procedures and processes outlined in the adjusting journal entry process should be followed for statistical adjusting journal entries.

MANAGING REVENUE SCHEDULES


Managing Revenue Schedules

Overview

Revenue Recognition Schedules track deferred revenue from Accounts Receivable or Order Entry sales transactions. Sales transactions will have a revenue recognition schedule attached to them and each schedule lists the potential amount and posting periods in which revenue will be recognized. For detailed policies and procedures regarding BSC’s revenue recognition, refer to the Accounts Receivable Procedures Manual.

Procedures for Posting Revenue Schedules

These procedures will be used as a guideline for managing revenue schedules.

The Manage Revenue Schedules process can be accessed through the General Ledger, Accounts Receivable, or Order Entry menus.

Use the drop down to select Post revenue from a schedule in the field called Show results where I can.

Enter the appropriate date in the Revenue Post on or before field.

Click on Apply Filters and a list of schedules meeting the criteria from the filter will be displayed in the Filtered Schedules section.

Select the schedules you want to post by checking the Select box next to the schedule.

The accountant reviews this list for accuracy.

Once the appropriate schedules have been selected, click Post to begin the process.

TIP! The schedules that appear in the Manage Revenue Schedules only apply to Revenue Recognition Templates that have a posting method set to manual.



Budgets

Overview

BSC utilizes the budgeting screens in Intacct to handle monthly Budget vs Actual reporting. Budgets are entered for each period, for all income and expense accounts, by location, and by department. BSC does not currently budget by any other dimension.

Note: BSC maintains one budget called Master Budget for financial reporting. This budget is updated each year with the budget amounts for the new fiscal year reporting periods.

Procedures for Importing Budget Information

Per company policy, new fiscal year budgets will be imported by January 31st of each year. BSC will use the budget import template provided by Intacct. The following procedures will be followed for importing budgets into Intacct.

Export the budget template from Intacct. Go to Company > Open Setup > Company Setup Checklist to get the most current budget template. Distribute the budget template to managers to fill out their budgets for the coming year.

Distribute the template to each department managers to complete their budgets for the year. Along with the budget template, an export of the current fiscal year’s budget for the relative department will also be provided to each manager.

Initial budgets will be reviewed by the controller. If changes are needed, the budget will be returned to the department manager. Once the controller has agreed with the budget provided by the department manager, it will be presented to the Budget Committee for final approval per company policy.

Once approved by the budget committee, budgets will be imported by selecting the Import button from the General Ledger > Budgets list view.

After budgets are imported, managers will review the Budget report in the General Ledger for accuracy. Any changes needed will be entered using the Update Budget Information procedures outlined in this manual.

The approved budget spreadsheet will be scanned and kept in Intacct under Company > Open Setup > Attachments.

BUDGETS


Procedures for Updating Budget Information

Use the following procedures to add budgets for a particular reporting period range.

Gather the documentation containing the new budget information. Ensure the information has been approved according to company policy.

Using the Budgets list view, select the Budget amounts link for the Master Budget.

In the Budget accounts - Master Budget list view, select Edit next to the account/department/location combination for the budget to be updated.

Using the Budget Account Information – Budget screen, update the amounts for each account, location, and department combination. Refer to Budget Account Information – Budget Screen on Page 39.

Once the information is entered, generate the Budget Report for the new budget information to ensure it is accurate. If changes are necessary, make the changes and then reprint the report until it is accurate.

Email a copy of the Budget Report to the Controller for final review.

Once the Budget Report is reviewed and signed off by the Controller, file it in the General Ledger binder.



Budget Information Screen

In the event a new budget is needed, the Budget Information screen is used to enter the new budget. For example, a budget by project or any other dimension.

Budget ID Enter in a Budget ID that is meaningful in identifying the budget. Description Enter a Description for the new budget. Create a New Budget This option is generally only used when creating a new budget from scratch. Create a Budget from Existing Budget and Reporting Period Range When using this option, choose the budget from the dropdown list along with the reporting periods for the budget. Consolidated Budget Check this box if this should be a consolidated budget. Consolidated Currency If this is a consolidated budget, enter the currency in this field. Default Budget Once the budget is finalized and the new calendar year begins, this option will be checked.

BUDGETS


Budget Account Information – Budget Screen

The top portion of this screen displays the account and dimension information for the selected budget. The bottom portion of the screen displays the reporting periods based on entered budget information or based on the period range entered in the Periods From Date and Periods To Date fields.

Dimensions Currently BSC budgets by Account/Department/Location. When editing the existing Master Budget, all of the dimension fields are display only. If you are creating a new budget, enter in the appropriate dimension information. Periods from Date and Periods To Date When adding the new fiscal year’s budget, enter the Period range for the new budget information and then select Show Periods. Based On This field displays how the existing budget amounts were calculated.

Reporting Periods The lower portion of the screen displays budget amounts for each reporting period along with how the budget was computed.



Calculating New Budget Amounts

Past Period/Grow By/Compute Amount This section is used to compute the amounts for the new budget.

Past Period To compute the new budget amounts based on a Past Period, select the period from the dropdown list. All reporting periods checked in the lower portion of the screen will be updated with the budget from the period selected. Grow By To grow a past budget by a percent or amount, choose the period with the budget in the Past Period field. Then enter the amount or percent, and check the appropriate field indicating whether the number entered is a percent or an amount. Compute Amount To populate the period budgets with a fixed amount, enter the amount in the Compute Amount field and all selected reporting periods will be updated with the amount entered in this field.

Compute Once you have entered the appropriate criteria in this section to create the budget amounts, click on the Compute button. All selected reporting periods in the lower section of the screen will be updated based on the criteria entered.

MONTH END PROCESSING


Month End Processing

The following procedures outline the steps for closing the books for the period. The closing process will close all modules for the period.

Note: These steps are also outlined in the Monthly Procedures Checklist on the following page. The checklist has been printed and each month it is signed and dated as each of the steps are completed. The checklist is kept in the front of the General Ledger binder which is stored in the Controller’s office.

Month End Procedures

Verify all transactions in all modules have been completed and posted. Generate the following custom report to verify:

• Month End JE Status Report

Complete and post any transactions that arise from the above review.

Verify all Recurring Journal Entries have been generated and posted for the month. Use the Recurring Journal Entries list view to look for transactions that have a past date in the next posting date field.

Print the Trial Balance report and confirm that account balances equal the balances on supporting documentation such as bank reconciliations, fixed asset listings, accrual worksheets, subsidiary ledgers, etc.

• If balances do not match, use the General Ledger report to find the transactions that are causing the account or accounts to be out of balance.

• Compare beginning balances for the period to last period’s ending balances to ensure no entries were made to prior periods.

Enter and post any transactions that arise from the above review.

Print and review the Trial Balance and General Ledger reports until they are accurate.

Print and review financial statements.

• On Balance Sheet reports, verify that Total Assets equal Total Liabilities and Equity. If year to date net income (loss) is presented on the Balance Sheet, verify it equals the amount on the Income Statements and Trial Balance.

• On Income Statement reports, verify Net Income (Loss) equals amounts on the Trial Balance.

• Verify other key numbers on the statements such as total revenues, gross profit, current assets, current liabilities, etc.

Sign off on the verified Financial Statements, Trial Balance, and General Ledger reports and file them in the General Ledger binder.

Distribute reports as required by Company policies outlined in this procedures manual.

Close the period using the Close Books screen.

In November after the closing, create the reporting periods for the upcoming calendar year.

GENERAL LEDGER MONTHLY PROCEDURES CHECKLIST

PREPARED BY: _______________________________ PAGE 43

Monthly Procedures Checklist

Period

1 2 3 4 5 6 7 8 9 10 11 12

Verify transactions in all modules have been completed and posted using the Month End JE Status Report.

Complete and post any transactions that arise from the above review.

Verify all Recurring Journal Entries have been generated and posted for the month by viewing the Recurring Journal Entry list view.

Print the Trial Balance report and confirm that account balances equal the balances on supporting documentation.

• If balances do not match, use the General Ledger report to review transactions which affected the account or accounts not in balance.

• Compare beginning balances for the period to last period’s ending balances to ensure no entries were made to prior periods.

Enter and post any transactions that arise from the above review.

Print and review the Trial Balance and General Ledger reports until they are accurate.

GENERAL LEDGER MONTHLY PROCEDURES CHECKLIST

Intacct GL Policies & Procedures | October 2015 | © 2015 Synergy Business Solutions. All rights reserved Page 44

Print and review financial statements.

• On BS reports, verify Total Assets = Total Liabilities and Equity and that year-to-date net income (loss) equals the amount on the Income Statements and Trial Balance.

• On Income Statement reports, verify the Net Income (Loss) equals the amount on the Trial Balance.

• Verify other key numbers on the statements such as total revenues, gross profit, current assets, current liabilities, etc.

Sign off on the verified Financial Statements, Trial Balance, and General Ledger reports and file them in the General Ledger binder.

Distribute reports as required by Company policies outlined in this procedures manual.

Close the period using the Close Books screen following the procedures outlined in this manual.

In November after the closing, create the reporting periods for the upcoming calendar year.

GENERAL LEDGER APPENDIX A – HOW TO USE THIS MANUAL

Intacct GL Policies & Procedures | October 2015 | © 2015 Synergy Business Solutions. All rights reserved Page 45

Appendix A – How to Use this Manual

Styles

This manual was written using Styles in Microsoft® Word. Using styles allows for consistent formatting throughout the document. To see what Style is used for a particular heading, bullet, etc., place your cursor in the desired text and the Style will be highlighted in the Styles section of the Home ribbon. For example, if you place your cursor in the Appendix A heading above, you’ll notice that Heading 1 is highlighted in the Style section.

Table of Contents

Content that uses the styles that are Heading 1, 2, or 3 are included in the Table of Contents (TOC). To update the TOC, place your cursor anywhere in the TOC and press the F9 key. Or, select Update Table from the References ribbon. Choose Update entire table in the Update Table of Contents window.

Cross References

Cross References used throughout the document to refer to different sections of the manual. To ensure all cross references are updated, select the entire document and press the F9 key.

Search and Replace

Use Word’s search and replace function to change BSC and Big Sky Collaboration to your organization’s name.

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