GL.2 General Ledger Entry Functions

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GL.2 General Ledger Entry Functions

GL.2.2 GL Document Entry - Cash Journals

GL.2.2.1 Migrating Legacy Petty Cash Balances to SAP

Name of the Manual: GOM SAP Reference and Procedure Manual for

General Ledger

Manual Code: GL

Section: General Ledger Entry Functions Section No.: GL.2

Subject: GL Document Entry - Cash Journals Subject No.: GL.2.2

Unit: Migrating Legacy Petty Cash Balances to SAP Unit No.: GL.2.2.1

Approved by: Mohamed Ahmed

Financial Controller

Prepared by:

Hassan Waheed

Document History:

Date Version Editor Remarks

01.12.2010 1.01 Hassan Waheed Initial Release

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PAGE INTENTIONALLY LEFT BLANK

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GL.2.2.1 Migrating Legacy Petty Cash Balances to SAP

Objective

Migrate the petty cash balance that is being maintained manually in to SAP Cash Journal

Responsibility

Migration of legacy petty cash into SAP cash journal involves;

1. creating a Payment Cash Journal for the agency in SAP for the agency

This will be done and informed to the agency by TPAD. Refer unit GL.4.2.1 (Cash Journal

Configuration) for further information.

2. passing a journal voucher for recording un-replenished petty cash expenses prior to

migration

This document will be entered by GL entry user (at the agency or TPAD) and posted by

GL officer at TPAD. The responsibilities of GL entry user are covered in unit GL.2.1.1

(Parking GL Documents - General (Enjoy Screen) and those for the GL officer are

covered in Unit GL.4.1.1 (Posting GL Documents).

3. entering an invoice for replenishment of un-replenished petty cash expenses prior to

migration

This will be entered and posted by AP entry user and AP authorizing officer at the

agency respectively. Their responsibilities are covered in the relevant AP procedure

manuals

4. bringing the balance of petty cash on hand just prior to migration as a replenishment in

to Cash Journal

This will be done by Petty Cash Holder at the agency. His responsibilities are covered in

unit GL.2.2.3 (Recording the Replenishment of Cash Expended).

Procedure

Scenario: On 01.10.2010, agency 1005 migrates its petty cash to SAP Cash Journal. The last

replenishment was made on 15.09.2010 Further information on the status of petty cash float

are as follows;

Approved float: MVR4,000.00

Cash balance as on 01.10.2010: MVR1,135.00

Un-replenished expenses (since 15.09.2010);

223010 (Annce., Subs. & Ads.) MVR1,865.00

222001 (Stationery & Req.) MVR1,000.00

The SAP Cash Journal created for the agency was P020

The migration process involves three separate tasks;

A. Agency/TPAD GL entry user: Pass a journal voucher for recording un-

replenished petty cash expenses prior to migration

The entry in the system for this transaction in Cash Journal would be;

1 Dr. 223010 1,865.00 Announcements, Subscriptions and Advertisements

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2 Dr. 222001 1,000.00 Stationery and Office Requisites

3 Dr. 414199 1,135.00 Cash-in-Transit - Petty Cash Replenishment

4 Cr. 913999 4,000.00 Initial Entry of GL Balances

B. Agency Accounts Payable user: Enter an invoice for replenishment of un-

replenished petty cash expenses prior to migration


1 Cr. Vendor 2,865.00 << Audit Card Holder >>

2 Dr. 414199 2,865.00 Cash-in-Transit - Petty Cash Replenishment

C. Petty Cash Holder: Bring the balance of petty cash on hand just prior to

migration as a replenishment in to Cash Journal


1 Dr. 414100 1,135.00 Petty Cash Journals

2 Cr. 414199 1,135.00 Cash-in-Transit - Petty Cash Replenishment

A. Agency/TPAD GL entry user: Pass a journal voucher for recording un-replenished

petty cash expenses prior to migration

Refer unit GL.2.1.1 (Parking GL Documents - General (Enjoy Screen) for more information.

Note: The entry of this transaction follows the same rules as described in unit GL.2.1.1

(Parking GL Documents - General (Enjoy Screen) except for the GL accounts, assignments and

text descriptions. A properly entered document for this scenario would be as follows;

Note: This transaction could be entered by a Public Accounting Division’s General Ledger user

if the General Ledger entry function has not been rolled out to the agency yet.

B. Agency Accounts Payable user: Enter an invoice for replenishment of un-replenished

petty cash expenses prior to migration

Refer the relevant AP procedure manuals for guidance on recording invoice for petty cash

replenishment

Note: The entry of this transaction follows the same rules as described in the relevant AP

procedure manuals except for the assignments and text descriptions. A properly entered

document for this scenario would be as follows;

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Note: Like any other invoice, this document also needs to be posted. Refer the relevant AP

procedure manuals for guidance on posting invoice for petty cash replenishment)

C. Petty Cash Holder: Bring the balance of petty cash on hand just prior to migration as a

replenishment in to Cash Journal

Note: The entry of this transaction follows the same rules as described in unit GL.2.2.3

(Recording the Replenishment of Cash Expended) except for the assignments and text

descriptions. A properly entered document for this scenario would be as follows;

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GL.2.2.2 Making a Payment through Cash Journal


General Ledger

Manual Code: GL



Unit: Making a Payment through Cash Journal Unit No.: GL.2.2.2



Prepared by:

Hassan Waheed

Document History:



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GL.2.2.2 Making a Payment through Cash Journal

Objective

Make a petty cash payment and record the transaction in SAP Cash Journal.

Responsibility

This needs to be done by the Petty Cash Holder at the agency. He has to make sure:-

1. that the payment is being made for valid cash journal transaction

2. that the payment is being made for duly prepared and approved “requests for petty

cash”

3. that the transaction is recorded on the correct date

4. to thoroughly check the document, before saving or posting it

5. not to hand over cash before posting the transaction in the cash journal (because,

the system checks for budget availability while posting the document and might be

rejected due to insufficient budget)

6. to attach electronic copies of all the supporting documents to the SAP document

Procedure

Scenario: On 02.03.2009, a “request for petty cash” for Rf80 is submitted to the Petty Cash

Holder after being duly approved. The requestor, Mr. Ahmed needs the cash for up and down

trip to MMA to deposit Cheques.

Note: This is paid from Cash Journal P003. The request was numbered as MEMO-01

The entry in the system for this transaction would be;

1 Dr. 221002 50.00 Travelling Expenses - Local Land Travel

2 Cr. 414100 50.00 Petty Cash Journals

1. Log on to SAP (refer unit GL.1.1.1 (Logging onto SAP))

2. Use one of the following options to access the cash journal;

SAP Menu Accounting ® Financial Accounting ® Banks ® Incomings ® Cash Journal

User Menu Z:GL_PAYMENT-CASHIER_P003_1009 ® Cash Journal

T-Code FBCJ

3. If you are prompted to enter the cash journal, enter the following parameters;

Field name User action and values Type Description

Company

Code:

GOM R Company code for Government of

Maldives

Cash

Journal:

P003

If the system does not

request you to make an

entry, check whether

you are already in the

correct cash journal.

R If necessary, choose or

[Change Cash

Journal] to select the correct cash

journal.

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4. Select or enter the appropriate date in the Display period area;

5. Select the Cash Payments Tab;

6. Fill in the fields as follows;


Business

Transaction

TRAVELLING EXP. -LOC.

LAND

R The transaction for Local Land Travel

Amount 80 R The transaction amount

Tax Code I0 R If left blank, it is derived by the

system based on the transaction used.

Business Area 1009 R Enter the proper bunsiness area

Cost Center C10099999 R Enter the appropriate Cost Center

number

Fund C-GOM R Consolidated Revenue Fund

Receipt

Recipient

Mr. Ahmed D The name of the person who received

cash.

Text Taxi fare to and from

MMA for cheque deposit

D A short description of the transaction

(50 characters max.)

Reference MEMO-01 D The reference of the petty cash

request (e.g. MEMO-001)

Posting Date 02.03.2009 R The system defaults this field to the

selected date. It may be corrected if

necessary.

Document

Date

02.03.2009 R The date of document for which the

payment is made. The system

defaults this field to the selected date.

It may be corrected if necessary.

G/L Not Needed This is derived by the system based

on the transaction used. DO NOT

ENTER ANY VALUE HERE

WBS Element Leave blank Leave this field blank. (Assumed that

this payment is not a project

payment)

Note: After properly keying in all the above-mentioned, press “ENTER”. This would validate the

information entered and give out any validation errors. If the system does not give out any

error message, you can proceed to saving the entry.

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7. To save the entry in Cash Journal, select the appropriate line by clicking on [square

on the left side of the row] and click [Save Selected Button]. Observe that

[Red Traffic Light] changes to [Yellow] and the balances are updated.

8. To post the transaction, select the appropriate line (as described above) and click

[Post Selected Button]. Observe that [Yellow Traffic Light] changes

to [Green].

Note: The line must be de-selected before proceeding to the next entry.

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Red traffic light signifies that the cash journal entry has been recorded in the

system; initial checks have been carried out for the data entered.

Yellow traffic light signifies that the entry has been saved (parked) in the cash

journal.

Green traffic light signifies that the entry has been saved in the cash journal

and posted in the general ledger.

Red cross signifies that the document is a reversal document or that it has been

reversed.

9. Now quote the SAP accounting document number on the hard copies based on which the

payment was made

a) Click on [Follow-on document] after selecting the line item or

simply double-click on the line to display the different documents relating to the

transaction

b) Click on “Accounting Document”

10. Attach the electronic copies of the supporting documents to SAP accounting document.

a) Click on [Follow-on document] or double-click on the line to

display the different documents relating to the transaction

b) Double-click on “Accounting Document” and follow Unit GL.2.1.6 (Attaching Files to SAP

Documents) to attach the files to it

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GL.2.2.3 Recording the Replenishment of Cash Expended


General Ledger

Manual Code: GL



Unit: Recording the Replenishment of Cash Expended Unit No.: GL.2.2.3



Prepared by:

Hassan Waheed

Document History:



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GL.2.2.3 Recording the Replenishment of Cash Expended

Objective

Record the receipt of cash as replenishment of expenditure from petty cash

Responsibility

This is the final step in the process of replenishment of expenditure from petty cash. Upon

receipt of replenishment cash, the Petty Cash Holder must record the transaction in cash

journal.

The Petty Cash Holder has to make sure:-

1. that he received correct amount of cash

2. that the transaction is recorded on the correct date

3. to thoroughly check the document, before saving or posting it

4. to attach electronic copies of all the supporting documents to the SAP document

Procedure

Scenario: The agency 1009 has expended MVR810 between 01.03.2009 and 06.03.2009 from

Cash Journal P003 and wants to replenish the amount. The request is made on 07.03.2009. The

cash was received on 10.03.2009.

This involves 5 main steps (this manual covers the final step);

A. Petty Cash Holder: Prepare and submit Cash Journal Transaction Report to

Accounts Payable user

(refer unit GL.3.2.1 (Cash Journal Transactions Report) for guidance on preparing Cash

Journal Transaction Report)

B. Accounts Payable User: Enter the Cash Journal Transaction Report as an invoice

payable to the Audit Card Holder

(refer the relevant AP procedure manuals for guidance on recording invoice for petty

cash replenishment)

C. Accounts Payable Authorizing Officer: Post the Invoice

(refer the relevant AP procedure manuals for guidance on posting invoice for petty

cash replenishment)

The entry in the system for this transaction in Accounts Payable would be;

1 Dr. 414199 810.00 Cash-in-Transit - Petty Cash Replenishment

2 Cr. Vendor 810.00 Audit Card Holder

D. Audit Card Holder: Collect the Cheque from MoFT and encash at MMA

E. Petty Cash Holder: Record the replenishment in the Cash Journal


1 Dr. 414100 810.00 Petty Cash Journals

2 Cr. 414199 810.00 Cash-in-Transit - Petty Cash Replenishment

E) Record the replenishment in the Cash Journal

Responsible person: Petty Cash Holder

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T-Code FBCJ



Company

Code:


Maldives

Cash

Journal:

P003







[Change Cash


journal.


Note: The posting date of replenishment transactions must be the date on which the Petty Cash

Holder received cash (for instance, 10.03.2009 in the scenario above)

4. Select the Cash Receipts Tab;

5. Fill in the fields as below;


Business

Transaction

REPLENISHMENT R Transaction used for recording receipt

into Petty Cash


Tax Code Not Needed Tax-code is not required for budget-

irrelevant balance sheet items.

Business

Area

1009 R Enter the proper bunsiness area

number

Cost Center Leave blank Cost center is not needed for balance

sheet account


Receipt

Recipient

Leave blank Leave this field blank

Text PXXX replenishment

dd.mm.yyyy to

dd.mm.yyyy



(e.g. P003 replenishment 01.03.2009 –

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06.03.2009)

Reference Leave blank Leave blank

Customer Not Needed Leave this field blank

G/L Not Needed This is derived by the system based on

the transaction used. DO NOT ENTER

ANY VALUE HERE






to [Green].

8. Now quote the SAP accounting document number on the Petty Cash Holder’s copy of the

Cash Journal Transaction Report

c) Click on [Follow-on document] after selecting the line item or

simply double-click on the line to display the different documents relating to the

transaction

d) Click on “Accounting Document”

9. Attach the supporting documents to the accounting document (refer unit GL.2.1.6

(Attaching Files to SAP Documents))

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GL.2.2.4 Correcting of Incorrect Entries


General Ledger

Manual Code: GL



Unit: Correcting Incorrect Entries Unit No.: GL.2.2.4



Prepared by:

Hassan Waheed

Document History:



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GL.2.2.4 Correcting Incorrect Entries

Objective

Correct (delete or if necessary, reverse) an incorrect entry in the Cash Journal

Responsibility

This needs to be done by the Petty Cash Holder at the agency. He has to make sure:-

1. that he corrects the right entry

2. that the entry is not in an already replenished period

Procedure

Scenario: The transaction on 02.03.2009 was entered wrongly. This was noticed after it was

posted. The transaction amount was entered wrongly as MVR520 instead of MVR250.

The reversal entry in the system for this transaction would be;

1 Dr. 414100 520.00 Petty Cash Journals

2 Cr. 222008 520.00 Supplies for Office Cleaning





T-Code FBCJ



Company

Code:


Maldives

Cash

Journal:

P003







[Change Cash


journal.


5. Select the appropriate Tab (Payments Tab in this case);

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6. Select the appropriate transaction

7. Click [delete row]. The system will ask to affirm the action to reverse the document.

Click “YES”.

8. The system will ask for the reversal reason. Select the appropriate option (usually “01” for

reversing in the current period) and press ENTER or click [green check mark].

The system will post a reversal document and update the balance.

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9. Now re-enter the transaction with correct values (refer unit GL.2.2.2 (Making a Payment

through Cash Journal) for guidance on recording a payment in cash journal or unit GL.2.2.3

(Recording the Replenishment of Cash Expended) for guidance on recording replenishment

in cash journal)

Note: Reversal is needed only if the document is posted. A saved entry can be deleted and re-

entered.

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GL.2.2.5 Retirement (Closure) of Petty Cash Journal


General Ledger

Manual Code: GL



Unit: Retirement (Closure) of Petty Cash Journal Unit No.: GL.2.2.5



Prepared by:

Hassan Waheed

Document History:



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GL.2.2.5 Retirement (Closure) of Petty Cash Journal

Objective

Close the SAP Cash Journal by depositing any cash balances on hand in to Public Bank Account

Responsibility

When the decision is made to close the cash journal, the Accountable Officer of the agency must

make sure that;

1. the cash expended were promptly authorized and delivered

2. necessary documents were maintained

3. all the entries being approved for replenishment are posted in cash journal

4. the balance in Cash Journal reconciles with the cash on hand

5. electronic copies of all the supporting documents are attached to the SAP

documents

Procedure

Scenario: On 01.06.2010, Ministry of Finance and Treasury instructed to close the Cash

Journal P014 (Letter 13-XX/2009/101). The reconciled balance of cash on hand was Rf1485.

The sum of Rf1485 was deposited into Public Bank Account via deposit form number 1166-

C255.

The entry in the system for closure of cash journal would be;

1 Dr. 462011 1,485.00 Public Bank Account Deposits Clearing In

2 Cr. 414100 1,485.00 Petty Cash Journals





T-Code FBCJ



Company

Code:


Maldives

Cash

Journal:

P014







[Change Cash


journal.

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5. Select the Cash Payments Tab;

6. Fill in the fields as follows;


Business

Transaction

PAYMENT TO BANK R Transaction for paying in to Public

Bank Account


Tax Code Leave blank Tax-code is not required for budget-

irrelevant balance sheet items

Business Area 1166 R Enter the proper bunsiness area

Cost Center Leave blank Not needed for balance sheet items


Receipt

Recipient

Leave blank Not needed for this transaction

Text Closure of Cash Journal

P014



Reference 13-XX/2009/101 D The reference of the supporting

document

Posting Date 01.06.2010 R The system defaults this field to the

selected date. It may be corrected if

necessary.

Document

Date

01.06.2010 R The date of document for which the

payment is made. The system

defaults this field to the selected date.

It may be corrected if necessary.

G/L Not Needed This is derived by the system based

on the transaction used. DO NOT

ENTER ANY VALUE HERE

WBS Element Leave blank Leave this field blank

Note: After properly keying in all the above-mentioned, press “ENTER”. This would validate the

information entered and give out any validation errors. If the system does not give out any

error message, you can proceed to saving the entry.

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to [Green].

Note: The line must be de-selected before proceeding to the next entry.

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Red traffic light signifies that the cash journal entry has been recorded in the

system; initial checks have been carried out for the data entered.

Yellow traffic light signifies that the entry has been saved (parked) in the cash

journal.

Green traffic light signifies that the entry has been saved in the cash journal

and posted in the general ledger.

Red cross signifies that the document is a reversal document or that it has been

reversed.

9. Now quote the SAP accounting document number on the hard copies based on which the

transaction was recorded.

10. Attach the electronic copies of the supporting documents to SAP accounting document.

(refer unit GL.2.1.6 (Attaching Files to SAP Documents) for guidance on attaching files to

SAP documents)

Note: The bank-related line item (462011) in this transaction must bear the reference of the

deposit form by which the money was deposited to PBA

11. Open the SAP accounting document by clicking [Follow-on document]

or simply double-clicking the line item in Cash Journal.

12. Click [Change Display / Change Mode] or simply press Ctrl+F1 to change the document.

13. Double-click the line item for 462011 (Public Bank Account Deposits Clearing In) and

replace the contents of the assignment field to reflect the deposit form number (1166-C255

in this case).

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14. Now click [Save] or simply press Ctrl+S to save the changes