Basic Accounting Concepts _ GE Accounting[1]

8/12/2019 Basic Accounting Concepts _ GE Accounting[1]

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Basic Accounting Concepts & GE

AccountingMark KingstonDecember 2004


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2 Basic Accounting ConceptsMark KingstonDecember 2004

What must Controllership produce?

PROPHET WIZARDQuarterly reporting to GECF CorporateReporting to Regulatory bodies

Each business submits numbers to the US

Files to submit to Corporate Data Repository(CDR) produced from Oracle General Ledger

Standard GECF platform

All businesses ultimately going through Oracle GL

Also, Local Statutory/Regulatory reportingeitherfrom local systems or from Oracle


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What must Controllership produce?

Oracle GLLocal

GL

OracleSubledgers

(AP/FA)

LocalSubledgers

Local Statutory /Regulatory Local Statutory

US Regulatory

CDRSubmissions

Local Regulatory

Wizard / Prophet Lite businesses

Prophet businesses


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Basic Accounting Concepts


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The General LedgerDouble EntryAccounting

Transaction: An event or happening that changesfinancial position and/or earnings.

All transactions will ultimately be recorded in the

General Ledger.Any transaction that is entered into the General

Ledger has to have at least one debit entry andone credit entry. This is called Double Entry

accounting, and is done via a journal entry.


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Debits & CreditsWhat are they?

A Debit: What do you own, or what are you owed? E.g.Cash in a bank account / A tangible asset that belongsto you / Money owed from customers / An expense

A Credit: What do you owe to others? E.g. Money owedto suppliers / Money owed to lenders / Revenue

A Debit value is generally recorded as a +ve figure, aCredit value is generally recorded as ave figure.

Debit & Credit values can be summarised to report a netbalance on any particular account.

The net effect of any transaction is zero.


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Debits & CreditsWhat are they?

Buying some stationery

The journal entry would be Debit Credit

Stationery costs 100

Cash 100

100 100

Stationery costs Cash

Using T-Accounts


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Accrual Method of Accounting

Income is reported in the fiscal period it is earned,regardless of when it is received, and expenses arededucted in the fiscal period they are incurred, whetherthey are paid or not.

Therefore, there may be timing differences:

Revenue is recognized beforecash is received.AccruedRevenue

Expense is recognized beforecash is paid.AccruedExpense

Revenue is recognized aftercash is received.DeferredRevenue

Expense is recognized aftercash is paid.DeferredExpense


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Assume that we had received an invoice for thestationery we had bought, but hadnt actually paid it yet.

Debit Credit

Stationery costs 100

Accounts payable creditor 100

Debit Credit

Accounts payable creditor 100

Cash 100

Then when the invoice is paid, we can post a journal toreduce the creditor and reduce cash


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Assume that we had paid rent of 2,400 on a buildingfor the full year, in January.

Debit Credit

Deferred Expenses 2,400

Cash 2,400

Debit Credit

Rent 200

Deferred Expenses 200

Starting with January, and for every period of the year,allocate the expense to the Rent account.


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Balance Sheet

A statement of the financial position of a businesswhich states the assets, liabilities, and owners'equity at a particular point in time. In other words,the Balance Sheet illustrates your business's net

worth.All accounts in the balance sheet are categorized

as an asset, a liability or equity. The relationshipbetween them is expressed in this equation:

Assets = Liabilities + Equity.


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Balance Sheet

ASSETS

CURRENT ASSETS

Cash 150

Accounts Receivable 230

Prepaid Expenses 65

FIXED ASSETS

Buildings & Equipment 350

Intangibles 265

TOTAL ASSETS 1,060

LIABILITIES

CURRENT LIABILITIES

Accounts Payable 50

Acc ruals 140

Notes Payable - Short Term 100

LONG TERM LIABILITIES

Notes Payable - Long Term 400

TOTAL LIABILITIES 690

EQUITY

Stock 200

Paid In Capital 100

Retained Earnings 70

TOTAL LIABILITIES & EQUITY 1,060

Includes all earnings from previous

financial years, plus any net

profit/loss from the current financial

year.

Retained Earnings:


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Profit & Loss Statement

The Profit & Loss shows the business revenue andexpenses for a specific period of time (i.e. thefinancial year to-date).

Difference between the total revenue and the total

expense is your net profit or loss.

A key element of this statement, and one thatdistinguishes it from a balance sheet, is that theamounts shown on the statement represent

transactions over a period of time.


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Sales 350

Cost of Goods Sold (130)

Gross Profit 220

Operating Expenses (175)

Net Profit Before Tax 45

Tax (15)

Net Profit After Tax 30

Dividends (10)

Net Profit After Tax 20


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In summary

Five types of account: Asset / Liability / Equity /Revenue / Expense

Debit:

Increase an Asset or Expense accountDecrease a Liability, Equity or Revenue account

Credit:

Increase a Liability, Equity or Revenue accountDecrease an Asset or Expense account


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The GECF Chart of Accounts


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http://tax2.corp.capital.ge.com/Finance/coa.nsf


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Balance Sheet

ASSETS

CURRENT ASSETS

Cash 150

Accounts Receivable 230

Prepaid Expenses 65

FIXED ASSETS

Buildings & Equipment 350

Intangibles 265

TOTAL ASSETS 1,060

LIABILITIES

CURRENT LIABILITIES

Accounts Payable 50

Acc ruals 140

Notes Payable - Short Term 100

LONG TERM LIABILITIES

Notes Payable - Long Term 400

TOTAL LIABILITIES 690

EQUITY

Stock 200

Paid In Capital 100

Retained Earnings 70

TOTAL LIABILITIES & EQUITY 1,060

001 through 299:

300 through 449:

450 through 499:

Stock 451/452/453

Paid In Capital 461/462/463Retained Earnings 481/482/483

If balance sheet prepared mid-year,

Retained Earnings will include YTD

net balance on accounts 500 through

999

Cash 010

Accounts Receivable 030/046

Buildings & Equipment 200/293

Intangibles 170/171

Accounts Payable 301-311

Accruals 320-326

Notes Payable - ST 313-317

Notes Payable - LT 318


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Sales 350Cost of Goods Sold (130)

Gross Profit 220

Operating Expenses (175)

Net Profit Befor e Tax 45

Tax (15)

Net Profit Afte r Tax 30

Dividends (10)

Net Profit Afte r Tax 20

500 through 599:Includes Interest Income & Other

Income

600 through 699:

Includes Interest Expense

700 through 899:

Includes Reserves & Operating

Expenses (inc. Depreciation)

970 through 987:

Includes Provisions for Taxes

Interest Income 350

Interest Expense (130)

CV (Contributed Value) 220

Reserves (55)

Operating & Admin Expenses (120)

Net Income Before Tax 45

Tax (15)

Net Income 30


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Chart of AccountsCDR Account

Business

Legal EntityCost

CentreCDR

Accoun t

Sub Account

Analysis1Analysis2

3

9 Alph a Numeric made up of:

GGG -General Ledger AccountBalance Sheet:001-299 Assets300-449 Liabilities450 Minority Interest in Equity

451-499 EquityProfit and Loss Statement:500-599 Revenue (Earned income)600-699 Interest Expenses780-899 Operating and Admin. Expenses970-987 Provision for Income Taxes990 Minority Interest in Earnings

SSS - Sub LedgerSSS - Sub Sub Ledger

Used to identify different types of account. E.g. TrialBalance / Volume / Memo accounts.

Global Value Set

Analysis3


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Chart of Accounts

BusinessLegal Entity

CostCentreCDRAccountSub

AccountAnalysis1Analysis2

1

2

3

4

5

6

8 alpha numeric

4 alpha numeric

9 alpha numeric

4 alpha numeric

3 alpha numeric

3 alpha numeric

6/7 Segments o f an Oracle Accoun t

Analysis37 2 alpha numeric

The company that thetransaction occurs in

The department that thetransaction relates to

The type of transaction orevent

Further detail on the typeof transaction

The Product / Project /Client / etc that thetransaction relates to


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Chart of Accounts - BLE

Business

Legal Ent i ty

CostCentreCDR

AccountSub Account

Analysis1Analysis2

1 8 Alpha Numeric made up o f:

Controlled by LeedsDetermined based on BSLA

001 - 3 US Corp id (Legal Entity)

01 - Statutory98 - Estimation99 - US GAAP Adj

Global Value Set

Controlled by Stamford

eg.

Any changes to BLE must follow the logic and be approved by LeedsA BLE links to a BSLA on a one-to-one or on a many-to-one basis

GR2 - 3 Business id

XX - 2 Local id

Analysis3


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BSLA vs Business Legal EntityBusiness Summary Level Acronym

The statutory legal bodies that form the ownershipstructure of a GE company

BSLA Unique Business Identifier

Exist for Internal Management Purposes

Legal Enti ty

Business can have a complex Legal Entity StructureMainly driven by Tax Efficiencies

BSLA: BCLJPY 001 204 0CA 080 D66 205 A51 A52 A53

US Corp El iminat ion

Corp

Funding

CorpLocal Corp

US Corp Equity Injection, Investment, Income & CTA Roll-upElimination CorpConsolidationAvoid Duplicate AccountingFunding Corp Daily Cash Flows, Hybrid Funding, Sub-Part FLocal Corp Local Accounting & US GAAP Adjustments

Unique Structure in GE Capital


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Legal Structure - Example

Denzel AutoLeasing GmbH

40%(GoldID W10331)

AVALEASLeasing GmbHBayern 100%

(GoldID W10326)

551GE ServiceCenter GmbH

100%(GoldID CK0295)

&S-LeasingGmbH50%

(GoldID W10371)

AustriaLegal Structure

= Run-off portfolio

= in Liquidation

General Electric Company

General Electric Capital Services, Inc.

001 General ElectricCapital Corporation100% 100% 100%

J13 General Electric Capital Global Financial Holdings

100%

J53General Electric Capital International Financing Corp.100 %

P50 SERVICE BANK GmbH100 % (GoldID W10389)

531 GE CAPITAL BANK GmbH100 % (GoldID CK0202)

Einlagensicherungder Banken undBankiers GmbH

(0,1% Anteil)

424 EuropeanInvestments

34%

545 Customized AutoCredit Services

0,6%

401 VehicleInvestments

1,9%63,5%

Einlagensicherung der Banken undBankiers GmbH (0,1 % Ant.)


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Chart of AccountsCost Centre

2

4 Alph a Numeric made up of:Xxxx - Global StandardxXXX-User Defined

Global standards:

0xxx Balance sheet/ Income/ Non operating expenses

1xxx Business Development2xxx Marketing3xxx Sales Function4xxx Operations (excl. Facilities)5xxx Collections6xxx Quality7xxx Risk Management8xxx Information Technology

9xxx FinanceAxxx Human ResourcesBxxx LegalCxxx Managing Director/ CentralDxxx Product DevelopmentExxx Leadership ProgramsFxxx Other (incl. Facilities)

Local Value Set

CDR

AccountSub Account

Analysis1Analysis2

Cost Centre

Business

Legal Entity

Analysis3


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Chart of AccountsSub Account

Business

Legal EntityCost

CentreCDR

AccountSub Account

Analysis1Analysis2

4

4 Alpha Numeric, User Defined

The sub account is CDR dependent, ie samenumbers can be repeated with different CDR

Accounts.

Example: CDR 801001001 Personnel Expense:

1xxx Exempt2xxx Non Exempt3xxx Hourly Paidx1xx Monthly Salary/ Regular Pay

x2xx Overtimex3xx Meal Allowance13xx Exempt Personnel/ Meal Allowance

Local Value Set

Analysis3


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Chart of AccountsSub AccountHowever, some specific uses of Sub account

Balance Sheet Fixed Asset Accounts (200 / 293) and P&L Depreciation (805) -Sub account often used to denote FA category

Current Accounts (440) - Sub account used to denote other party tointercompany balance. Affiliate code held in DFF.

Intercompany Accounts (442) - Sub account used to identify US Corp withwhich intercompany balance is held

Investment in Subsidiary (444), Retained Earnings Unrealised Gain/Loss onFX (481051001 / 482051001), Earnings of Consolidated Affiliates (988001001)- Sub account populated in Net Income & Foreign Exchange rolls. 1stdigit

denotes whether NI or FX roll (N or F), last 3 digits denotes the US Corp fromwhich values have been rolled.


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Chart of AccountsAnalysis Codes

Business

Legal EntityCost

CentreCDR

AccountSub Account

Analysis1

Analys is2

5

3 Alpha Numeric - Used fo r Produc t

Informat ionXxx - Global StandardxXX - User Defined

Global standards (extract):1xx Sales Finance - Closed End

2xx Sales Finance - Revolving3xx Consumer Loans - Closed End4xx Consumer Loans - Revolving5xx Commercial Loans - Closed EndNB. There are current ly 29 global ly def ined product cod es

3 Alpha Numeric - Used fo r Cl ient /Project Inform ation6

Analysis3 2 Alpha Numeric Usual ly spareLocal Value Set

Local Value Set

Local Value Set

7


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GECF Accounting Rules & Concepts


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Volume Accounting

What is Volume Accoun t ing?

In examples until now, we have assumed that there is one account foreach type of transaction on the balance sheet. E.g. Any transactionaffecting Fixed Assets would be posted to the same account.

But this would only give us one total for the opening balance of Fixed

Assets plus any transactions during the year. GE want to be able to see the different types of movements in the

current year separately from the opening balance from the previousyear.


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Volume Accounting

What does Volume Acco unt ing entai l?

New activities are recorded in distinct SSS-SSS accounts

eg. 200-001-002 Fixed AssetsCost - Additions200-001-003 Fixed AssetsCost - Disposals200-001-004 Fixed AssetsCost - Transfers

Opening Balance account (1/1) associated with each group of volume

accounts (at GGG level)

1/1 Balance for the year is accumulation of the group of volumeaccounts at the previous year end

Why do we do Volume Account ing?

To provide analysis on the balance sheet between prior year andcurrent year activities


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Example: Receivables

End 2004 Begin 2005

US $

030 001 001 1/1 Balance 500 740

002 Collection 50 0

003 Volume 150 0

004 Transfers (40) 0

005 Write Off (20) 0

Total 740 740

Volume Accounting

Year-end Roll

Year End Roll process moves balances to the 1/1 Account

740


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Intercompany Accounts

440 Accounts

Designed to record movement between Corporate and a Business orbetween two Businesses with the same Legal Entity

All current accounts must have an Affiliate Code

442 Accounts

Designed to record intercompany loans between two Legal Entities whereboth sides are recorded in the same BSLA, but in different Legal Entities.

Sub Ledger (442 10X) identifies the tier (of creditor)

CDR Edit442-10X must be zero by BSLA ($100 tolerance)

442-10X Accounts are invalid in Corps. OCA and 9CA


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Intercompany Accounts

CDR Accounts used:

BSLA: ADMBBBCorp: 001

BSLA: BCXDEMCorp: 204

BSLA: BCYJPYCorp: 204

BSLA: BCYJPYCorp: 001

440

440

442: i/c, or444: Equity


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Accounting ControlsRelatedAccounts

1)Financing Receivables: Allowance for Losses:Current Year Receivable Losses Current Year Write-Offs

030 080042 -XXX-005 Should Equal 081 -XXX-003

046 082047

2)Allowance for Losses:Current Year Provisions Provision for Losses

080 780081 -XXX-002 Should Equal 781 -XXX-XXX082 782


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Accounting ControlsRelatedAccounts

3) Allowance for Other Receivables Provisions for LossesCurrent Year Additions Other Receivables

131-001-001 Should Equal 799-001-001

4) Equipment Leased to Others

Current Year Amortisation Depreciation and Amortisation

181 -XXX-002 Should Equal 805-180-XXX182

5) Building and EquipmentCurrent Year Depreciation Depreciation and Amortisation

293-XXX-002 Should Equal 805-001-001


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Other Accounting Rules

Other accounting rules effectively defined by the CDR Edit Checks

Fundamental GE Accounting policy can be found in the ControllershipFundamentals course materials

E-Finance Training Workplace

http://efinance.gcf.capital.ge.com/compass/gcfcfs.nsf/docs_Wkgrp_ByHits/987274F25E9930D280256EB400592CCA?OpenDocument

or GE Consumer Finance e-Library Support Central site

http://supportcentral.ge.com/products/sup_products.asp?prod_id=19174

Chart of Account Structure & Usage document

http://supportcentral.ge.com/bookupload/sup_book_default.asp?prod_id=15514&trng_doc_id=123848&vendor_flag=11&doc_cat_id=46534
http://efinance.gcf.capital.ge.com/compass/gcfcfs.nsf/docs_Wkgrp_ByHits/987274F25E9930D280256EB400592CCA?OpenDocumenthttp://efinance.gcf.capital.ge.com/compass/gcfcfs.nsf/docs_Wkgrp_ByHits/987274F25E9930D280256EB400592CCA?OpenDocumenthttp://supportcentral.ge.com/products/sup_products.asp?prod_id=19174http://supportcentral.ge.com/bookupload/sup_book_default.asp?prod_id=15514&trng_doc_id=123848&vendor_flag=11&doc_cat_id=46534http://supportcentral.ge.com/bookupload/sup_book_default.asp?prod_id=15514&trng_doc_id=123848&vendor_flag=11&doc_cat_id=46534http://supportcentral.ge.com/bookupload/sup_book_default.asp?prod_id=15514&trng_doc_id=123848&vendor_flag=11&doc_cat_id=46534http://supportcentral.ge.com/bookupload/sup_book_default.asp?prod_id=15514&trng_doc_id=123848&vendor_flag=11&doc_cat_id=46534http://supportcentral.ge.com/products/sup_products.asp?prod_id=19174http://efinance.gcf.capital.ge.com/compass/gcfcfs.nsf/docs_Wkgrp_ByHits/987274F25E9930D280256EB400592CCA?OpenDocumenthttp://efinance.gcf.capital.ge.com/compass/gcfcfs.nsf/docs_Wkgrp_ByHits/987274F25E9930D280256EB400592CCA?OpenDocument


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38 Basic Accounting Concepts

Mark KingstonDecember 2004

The Corporate Data Repository (CDR)


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CDR FeedsCorporate Data Repository

Primary ook Reporting ook

MF

Feed

FuncCCY

OrigCCY

Tfrrd to

Rptg

Book

OrigCCY

MO &

MF

Feed

USX

AU &

MU

Feed

Three Feeds are submittedeach month sourced by

Currency from differentbooks

Prior to Consolidation theFeeds Pass Through theData Parking Lot Edit

Checks run at this point

CDR - the Books & Recordsof the Company Used for

Management, Statutory &Tax ReportingMRC

Data Parking Lot


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CDR Feeds

4 Types of Feed from Oracle GL to Central Data Repository

A currency a transaction occurs in

Currency of the primary economicenvironment in which the affiliateoperates

Reporting Currency is the US$,the currency in which GeneralElectric prepares its consolidated

financial statements

Definit ion Data Feed

MO(Full TB)

MF(Full TB)

AU - hard close(quarterlyfull TB)

MU - soft close(440 accounts only)

Orig inat ing Ccy

Funct ional Ccy

Report ing Ccy


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Primary & Reporting Books - MRC

MRC Process

PRIMARY

BOOK

Local Reporting

REPORTING

BOOK

GE Reporting

ORIGINATING

100 GBP

145 Euro

300 USD

FUNCTIONALGBP

100 GBP

100 GBP

200 GBP

REPORTINGUSX

150 USX

150 USX

300 USX

ORIGINATING

100 GBP

145 Euro

300 USD

Conversion fromOriginating toFunctional &Originating to

Reporting done at

Monthly OperatingRate


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GE Exchange Rates

http:/ / f inance.corporate.ge.com/index.htm

MOR Rate

GAP Rate

Monthly Average Rate / P&L rate

- Issued on a monthly basis- To be applied to all transactions that are booked duringthe month- Available from 15th of the previous month.

Balance Sheet Rate- Issued on a quarterly basis, shortly before the quarter-end.- Used to revalue the balance sheet at that quarter-endand for the following two months, before a new balance

sheet rate is issued.


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Monthly Finance Closing Process


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Oracle Closing Process

Perform

Remeasurementin the Primaryset of books

Perform

Translationin the Reportingset of books

Perform

Roll-ups in theReportingset of books

Submit to CDR

O C


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Perform


Perform


Perform


Submit to CDR

R l i


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RevaluationExample: Receivables

Original Currency Conv Rate Functional Currency FX difference Total

030 001 001 1/1 Balance 500 GAP rate 750 250 1000

002 Collection 50 GAP rate 125 (25) 100

003 Volume 150 GAP rate 375 (75) 300

004 Transfers (40) GAP rate (100) 20 (80)

005 Write Off (20) GAP rate (50) 10 (40)

_______ ________

Total 640 @2.0 1,280

_______ ________Primary SoB 551 400 001 Realized Exchange gain/lossReporting SoB 481 051 001 / 482 051 001 CTA Unrealized gain/loss

However, the balances on volume accounts should not move due to translation differences

(180)

V l A ti


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Volume Accounting

Additional FX accounts ensure compliance with the translation requirement

Example: Receivables

Functional Currency FX difference Total Volume Acctg Total (after)

030 001 001 1/1 Balance 750 250 1000 (250) 750

002 Collection 125 (25) 100 25 125

003 Volume 375 (75) 300 75 375

004 Transfers (100) 20 (80) (20) (100)

005 Write Off (50) 10 (40) (10) (50)

030 999 777 CY FX 180 180

_______ ________ ________

Total 640 @2.0 1,280 1,280_______ ________ ________

O l Cl i P


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Perform


Perform


Perform


Submit to CDR

NI & FX R ll C 080


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NI & FX RollsCorp 080

GE GAAP Accounting requires that a subsidiarys Currency Translation

Adjustment (CTA), the unrealised gains/ losses on Foreign Currencyrecorded in CDR 482 051 001, be rolled up to its parents books.

The first digit of the sub-account is an F.

What is FX Rol l?

GE GAAP Accounting requires that a subsidiarys income be rolled-up toits Parents Books. To eliminate double counting the amount rolled is

eliminated in the Elimination Corp 080

The first digit of the sub-account is N

What is NI Rol l?

Both roll-ups use the same functionality within Oracle GL

N t I ll


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Net Income roll-up

GE GAAP Accounting requires that a subsidiarys income be rolled-up toits Parents Books. To eliminate double counting the amount rolled is

eliminated in the Elimination Corp 080.

Assume US Corp J53 is 100% owned by US Corp 001

What is the Net Income rol l?

US Corp Net Inc Roll-up effect Total Net Inc001 (10,000) (20,000) (30,000)J53 (20,000) (20,000)

080 20,000 20,000

(30,000)Corp 080 exists specifically for recording offsets (or eliminating entries)from Net Income & Foreign Exchange rollups, to avoid the doublecounting of Net Income and Currency translation effects across a BSLA

N t I ll E l


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Net Income roll-up - Example

GE100101

GE1J5301

GE1ABC01

GE120401

If the Net Income of these corps is:

GE100101 $ 10,000GE1J5301 $ 20,000

GE1ABC01 $250,000GE1XYZ01 $ 40,000GE120401 $ 70,000

what will the Net Income be in the

following Corps after the rolls havebeen performed?

001 / J53 / ABC / XYZ / 204 / 080?

(assuming 100% ownership)GE1XYZ01

Roll ups occur fromeach entity toevery entity which has a stake in that

entity

N t I ll E l


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After roll-up:

GE100101 $ 390,000GE1J5301 $ 310,000

GE1ABC01 $ 290,000GE1XYZ01 $ 40,000GE120401 $ 70,000GE108001 $-710,000

Total $ 390,000

Net Income roll-up - Example

Before roll-up:

GE100101 $ 10,000GE1J5301 $ 20,000GE1ABC01 $250,000GE1XYZ01 $ 40,000GE120401 $ 70,000

Total $390,000

001

J53

ABC

XYZ

204

080

Own NI $10,000

from J53 $20,000

from ABC $250,000

from XYZ $40,000from 204 $70,000

$390,000

Own NI $20,000

from ABC $250,000

from XYZ $40,000

$310,000

Own NI $250,000

from XYZ $40,000

$290,000

Own NI $40,000

Own NI $70,000

-$20,000

-$250,000

-$40,000

-$70,000

-$250,000

-$40,000

-$40,000

eliminated -$710,000

In Summary

O l Cl i P


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Perform


Perform


Perform


Submit to CDR

CDR S b i i


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CDR SubmissionsCorporate Data Repository


MF

Feed

FuncCCY

OrigCCY

Tfrrd to

Rptg

Book

OrigCCY

MO &

MF

Feed

USX

AU &

MU

Feed





CDR - the Books & Recordsof the Company Used forManagement, Statutory &Tax ReportingMRC

Data Parking Lot

CDR S b i i


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CDR SubmissionsCorporate Data Repository


MF

Feed

FuncCCY

OrigCCY

Tfrrd to

Rptg

Book

OrigCCY

MO &

MF

Feed

USX

AU &

MU

Feed





CDR - the Books & Recordsof the Company Used forManagement, Statutory &Tax ReportingMRC

Data Parking Lot

CDR Edits


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CDR Edits

Some of the CDR Edit rules

CDR Submission must:- Submit valid BSLA, Accounts, Legal Entities, Currency Codes and Ledger Types- Balance by BSLA, Legal Entity, Currency and Ledger Type- Agree with 1/1 Account Balance within a $100 tolerance- Observe current account rules 440-001-XXX, 440-002-XXX, 440-010-XXX Booked to Legal

Entity 001

Current Accounts- All 440, 449 and 453-500 accounts must have an Affiliate code

Intercompany Debt- 442-10X must be zero by BSLA (within $100 tolerance)

Equity Rules- Sum of 442 / 444 / 462 / 482-050-001 / 482-051-001 / 988-001-001 must be zero by BSLA

CDR Edits


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CDR Edits

Allowance for Losses- Sum of Current year balance sheet provisions (08X-001-002) must equal sum of Provisions

for Losses (78X-XXX-001)

Other- Sum of 605 must be zero within BSLA- Account 988-001-001 on Legal Entity 001 must be equal sum of Accounts 5XX-9XX (excl.988-001-001) of all Legal Entities except 001, 0CA, 0FA and 9XX

Tax Edits- Effective tax rate- Provisions through the Profit & Loss should tie up with current year movements in the balancesheet accruals

Account Validation

- Some accounts are only validor not validin specific entitieseg. - 698 & 699 Accounts only valid in 0CA

- 481/2 051 001 not valid in 0CA

Link: http://supportcentral.ge.com/products/sup_products.asp?prod_id=15514

CDR Submission whats included?
http://supportcentral.ge.com/products/sup_products.asp?prod_id=15514http://supportcentral.ge.com/products/sup_products.asp?prod_id=15514


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CDR Submissionwhats included?

Typ ical l ine from a CDR Feed

BSLA

CDRAccount

AffiliateCode Date Balance

LE Currency FeedType

EnteredDescription

GLID

General Ledger Identifierallows each businesss submission tobe recognised in the CDR. A business can only have 1 GLID, but1 GLID may apply to more than one business. 2 digit code.

Dependent on the CDR Feed type

The BSLA of another GE business for inter-company transactions.Derived from the Sub-Account.

A user entered description to aide identification of the feed.

GLID:

Currency:

Affiliate Code:

Entered Description:

CDR vs Oracle Account


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Cost Centre and Analysis Codes

details not taken to the CDR

CDR vs Oracle Account

3 digitLE code

CDRAccount

Actual sub account not taken tothe CDRhowever AffiliateCode linked by sub account

Specifiedwhen

sending feed

Balanceheld onaccount

Descriptionentered whensending feed

Specifiedwhen GLis created

BSLA is linked to thefirst 3 digits of the

Oracle LE

Reconc i l ing CDR Feed To Oracle Ac count K ey:

Oracle Acc ount Key

CDR Feed

AAL40101.HW13.440001012.A900.000.000.000

Dependanton feed

being sent

Who is using what?


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Who is using what?

Oracle GL All Local & USGAAP adjs done onOracle

Closing performed

by business

Local GL, interfacedto Oracle GL

US Legal Entitiesheld in Oracle GL

Closing performed

by business

Local GL, interfacedto Oracle GL

Closing performedby GECIS

PROPHET PROPHET LITE WIZARD

Businesses transactions get into Oracle GL in different ways

France

UK (inc. Home Lending &Auto)

Switzerland

Japan

Ireland

Germany

Scandanavia

Hungary

Czech Republic

Italy

Portugal

Spain

Poland *

Austria *

India

Argentina

Brazil

Mexico

Romania

UK-Corporate

Belgium

* Prophet implementations ongoing

What differences are there?


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What differences are there?

PROPHET

PROPHET

LITE

WIZARD

Local/USGAAP adjsin Oracle

GEClo

sing inOracle

SubmittoCDR

Local/USGAAP adjs

in localledger

Interface to

OracleGL

USGAAPadj

s inOracleGL

GEClosin

g inOracle

Submit

toCDR

Local/USGAAP adjs

in localledger

Interface toOracleGL

USGAAPadjs inOracleGL

GEClosing inOracle

Submitto

CDR

Carried out by local business Carried out by GECIS

Any questions?


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Any questions?

Documents

Basic Accounting Concepts _ GE Accounting[1]