Introduction to Use of Pivot Tables

Introduction to Use of Pivot Tables

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What do pivot tables do?

Guide to creating pivot table (easier than Dummies’ version).

Sample uses for fraud detection:

journal entries, accounts payable

Where to go for more information


Pivot Tables are a powerful Excel tool that allows you to:

SUMMARIZE DATA

DISPLAY THE SUMMARIZED DATA

ANY WAY YOU WANT

TO ANSWER YOUR QUESTIONS.


Spreadsheets

Flat

2 dimensional

Un-summarized

The crushing amount of detail hides patterns


EXAMPLE OF MIND NUMBING SPREADSHEET(hypothetical data about conference attendees)


A Pivot Table Summarizes & Displays Patterns in this Data

At a glance, this pivot table shows that about 2/3s of attendees had attended previously. The group with the highest percentage of new attendees is private industry. This allows us to explore why the conference was more successful in bringing in new attendees in this group and to try to use this success in bringing in new attendees from other groups.

This is a simple illustration of how pivot table highlight differences for norm—which can be good or bad.


The Same Date Sliced Differently to Ask Why Attendees Came

This summary of why attendees came allows you to develop theories about why so many new attendees working in the Public Sector came. They came for “Specific Content. “

In contrast those working in Government came because they needed “Cont. EdHours”, while those doing Outsourced Work came for Marketing opportunities.10940 Wilshire Blvd. Suite 1600 PMB 580 Los Angeles, CA 90024 Office 424.222.7770

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Pivot Tables Are Great BecauseThe data is summarized and easy to understand.

Just like the Veg-O-Matic –> It slices!!! It dices!!!

3 Dimensional view of data -- Tabulates of numerical & categorical variables

Pivot tables show you data patterns and anomalies.


How to Create a Pivot Table

The single most difficult aspect of creating a pivot table (if you have never done one before) is figuring out where Microsoft hid the Pivot Table Wizard in your version. In older versions (with drop down menu), it is on the Data tab. In newer versions, it is on the Insert table. Hint: When all else fails, perform a search for Microsoft Excel Pivot Table 20XX (your version: 2000, 2007, 2010 etc.) The Microsoft pictures are worth a thousand words.

The keyboard command is Alt D + P


Step by Step How To1. Get the data you want to analyze. 2. If it is not already in Excel, export it from your accounting

program.3. Make sure your data is clean, i.e., free from gaps,

carriage returns, quotation makes. Active Data makes this easier to accomplish on bigger files.


4. Clickhere.


5. Verify that the Wizard selected the correct data range. If it did not, there may be an unnoticed gap in the data.


6. Check at the variables you wish to examine in the larger upper box.7. Drag the label you wish displayed as a column from the small lower left box (row labels) to the small upper right box (column labels).8. Drag the variable to be tallied to the lower right box (sum values). With right click you can change from sum to count, average, etc.

Hint: To get the format box back, put your cursor in the Pivot Table.


Fraud Detection

Use pivot tables to analyze: Journal entriesAccount PayablesPayroll entries

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Journal Entry Analysis

Include the following elements in your data capture:

Who: User ID, Approver ID What: Debit & Credit Amounts, Explanation/DescriptionWhen: Entry Date and Effective DateWhere: Journal Entry #, Account #, Cost Center #How: Manual or Automated


You can examine anything you would look at manually. In using a pivot table, sum by account, month, user, etc. to get the pattern. The low hanging fruit to examine includes:

Entries in which the User ID and the Approver ID are the sameEntries made by non-authorized personnel Entries to unusual accountsEntries made on unusual dates or timesEntries with anomalous effective dates


Illustration of Journal Entry Analysis(Inappropriate approvals)

In Combination withDemonstration of “Slicer” to Filter

Results

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From the workbook of journal entries, select “user”, “approver” and “date.”

Drag the entries to the desired column, row, and value area.

With your cursor in the pivot table so the pivot table tools are displayed, click on “Insert Slicer”

From the drop down menu, select the variable you wish to filter by. In this example, “approver” was selected.

Self Approval of JE & Demo of Slicer Tool Continued


By selecting the blue bar labeled Garrad, the slicer filter show just the approvals he made. It can be seen he appoved his a JE for he made.

Greta also approved a JE she made.

Illustration of an Accounts Payable Analysis

In Combination with

a Demonstration of Import of a Text File


From the Data Tab, select Import text, browse to text file & select file. The Wizard opens. Click “next” in all screens unless you need to change the delimiters in step 2.


Accounts Payable Illustration


This Pivot Table was created by selecting Vendor and Check Amount.

Vendor Count was added by dragging Vendor down to the Sum area.

The Check amount is sorted from largest to smallest.

The Power of Drill Down


Clicking on a box in the “Sum of Checks” on previous screen gives the detail for the entries.

This is the Vendor with the largest total.

Another Drill Down


This is the drill down for a Vendor with a large total but only one check.

This detail might make you say Hmm.

Summary of this Segment

Pivot tables display and summarize.They allow you to filter and drill down.

The displays are mostly limited by your imagination.Wizards will get you there.

Pivot Tables are especially useful in analyzing Journal Entries, Accounts Payable, and Payroll.


Best Advice

Go PlayWhen you get stuck, google the terms

you are stuck on and you will find a You Tube video or a Microsoft lesson or a blog post that explains exactly what

you want to know.Mastery comes from practice alternating with training.

After you gain basic mastery through play, go for more training.


Documents

Introduction to Use of Pivot Tables