General Ledger Coding Training 2/8/2014. Welcome to the General Ledger Coding Training. Please click the button to begin the training.

Transcription

1 Welcome to the General Ledger Coding Training. Please click the button to begin the training. 1

2 Navigating this presentation. This presentation contains audio. If you cannot hear the audio, please turn on your computer s sound option. To move around this presentation please us the back and next buttons located in the bottom. Use the Next button to continue to the next slide, or click the Back button to return to the previous slide. You can go to the homepage at anytime by clicking the Home button. Please click Next to continue. 2

3 From the Home Page you can select a specific topic for review, or If you have taken the training before you may skip the lessons and take the certification test by clicking the yellow button at the bottom. To begin the training presentation please click Next. 3

4 The general ledger is an accounting journal that uses double entry bookkeeping. This is a process where each transaction is recorded twice using a debit and a credit. This helps ensure accurate bookkeeping of financial transactions. Debits and Credits are recorded using account codes from the chart of accounts. If the accounting entry is accurate, debits and credits will net to zero. Pioneers also use transaction codes to help us categorize transactions which include the State Code, Project ID Code and 990 Code. Please click next to continue. 4

5 The information in the general ledger tells us which Unit the transaction belongs to. What the money was used for. Where the transaction occurred. Why the money was spent or received and how the money was spent or received. Please click next to continue. 5

6 Lesson 1: Unit Numbers. In this lesson we will show you how to identify your Chapter, Council, or Club Number and determine if the funds have a restriction. Upon completion of this lesson, you will be able to: Locate your Unit Number and classify fund restrictions. This lesson takes approximately 10 minutes to complete. Please click next to begin. 6

7 Pioneers is a public charity, recognized by the Internal Revenue Service under section 501c3 of the Internal Revenue Code. The organization is made up of several Chapters, Councils, and clubs that go out into their local communities and volunteer. Pioneers have chapters in all 50 states and Canada. All groups located in the United States operate under the same tax identification number Click next to continue 7

8 The United States Chapters are divided into the following Groups: AT&T Pioneers, CenturyLink Pioneers, New Outlook Pioneers, And New Vision Pioneers. Click Next to continue. 8

9 Chapters, Councils, and Clubs are usually formed based on membership and geographic needs. When referring to the collective groups, Chapters, Councils and Clubs we use the term Pioneers Units. A Pioneers Unit may be a Group, Chapter, Council or Club. Click next to continue. 9

10 Pioneers Units are assigned a number that is used to identify them in the bookkeeping software. A Chapter number is determined by the order in which their charter was formed. A Council or Club number is determined by the next available number in our bookkeeping software. Please click next to continue. 10

11 Within our bookkeeping software, Pioneers Units are further classified into three fund restrictions that are identified by the starting number. Unrestricted Funds are identified with the number 1. This is the general fund where money can be spent, as needed, to meet the 65% and 35% rule. Temporarily Restricted funds are identified with the number 2 and donor restricted to a specific project, program or cause. 100 percent of the funds must be spent the way the donor has requested. Permanently Restricted Funds are identified with the number 3. Permanently restricted funds usually involves a core amount that is legally restricted by a donor to remain principal in order to generate interest or dividends. Click next to continue. 11

12 A fund is a number that is made up of a restriction, chapter and sub unit. These Unit Numbers are unique to identify the group and for building financial reports. Click next to continue. 12

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14 In summary, a Pioneers Unit may be a group, Chapter, Council, or club. In this lesson, you have learned that each Pioneers Unit has it s own number, and the starting number indicates the type of restriction on the funds. The three restrictions are: Unrestricted, Temporarily Restricted and Permanently Restricted. In the next lesson we ll review how the Pioneers bookkeeping system is structured. Please click Next to continue. 14

15 Lesson 2: Chart of Accounts. In this lesson we will review how certain financial transactions are recorded in the Pioneers bookkeeping system. After completion, you will be able to recognize the purpose for the central components of the general ledger: Asset and liability accounts as well as income and expense accounts. This lesson will take about 10 minutes to complete. Please click next to continue. 15

16 What is the Chart of Accounts? Well put simply, a Chart of Accounts is a created list of the accounts used by an organization to define each class of items for which money or the equivalent is spent or received. It is used to organize the finances and to segregate expenses, income, assets and liability. By organizing our financial transactions into accounts we are able to: Easily report our financial standing to government agencies, plan and budget our activities and projects, monitor our budgets, as well as reporting our financial position to potential donors. Click next to continue. 16

17 Asset accounts represent the different types of economic resources owned or controlled by the organization. Common examples of asset accounts are bank accounts and inventory. Liability accounts represent the different types of economic obligations of a business. Common examples of liabilities include sales and use tax payable. Net asset value is the value of an entity s assets less the value of it s liabilities. Click next to continue. 17

18 Income or Revenue accounts are used to record how money is received. Some examples are income received from sales, membership dues or contributions. Expense accounts are used to record how money was spent. Some examples include expenses for project materials, monetary donations, meals. Net income/loss is determined by subtracting the amount of income received from the expenses paid. Please click next to continue. 18

19 Asset, liability, income and expense accounts can be identified in the Pioneers Chart of Accounts by the account number as shown in the chart. Please click next to continue. 19

20 Some tips to remember when selecting an income or expense account are income accounts for deposits always start with a 4 and expense accounts start with a 6. The only exception to this is for sales transactions. Sales deposits begin with 49 and sales expenses or more commonly called Cost of Goods Sold begin with 55. Click the bubble to be redirected to the General Ledger Account Code Glossary, otherwise please click next to continue. 20

21 Generally income and expense accounts are matching sets. For example the account which is used for income related to Pioneers meals has a matching expense account 60022, which is the corresponding account for meal expenses. The same is true for Registration income and expenses and several others. Please click next to continue. 21

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23 To summarize, in this lesson you ve learned about the main categories that make up the Pioneers Chart of Accounts and how they are used. In the next lesson, we will learn how the Pioneers bookkeeping system utilizes transaction codes to obtain additional reporting details. Click next to continue. 23

24 In this lesson we will learn how Transaction Codes are used in the Pioneers bookkeeping system. After completion, you ll be able to recognize the purpose for the following attributes of the General Ledger: Project ID codes, State codes, and 990 codes. This lesson takes about 15 minutes to complete. Please click next to continue. 24

25 Project ID codes are acronyms, or one word descriptions used to assign a specific event, activity or project to a transaction. For example if you wanted to know what your income and expenses were for your golf tournament a report can be ran to show all income and expenses for the Project ID GOLF. Project ID codes enable Pioneers Units to more effectively plan and budget for specific activities. Click the balloon to be redirected to the Pioneers Project ID listing on the Pioneers website. Otherwise, Please click next to continue. 25

26 Prior to the 2010 software conversion, a TPF1 voucher would be submitted to reimburse Hug A Bear expenses as follows: All of the budget items were coded to 6053 Health and Humans Services. For example, if a request was received to find out how much was spent on shipping and postage for Hug A Bears, it was not possible to retrieve that information since shipping and postage was not segregated from material and supply costs. Please click next to continue. 26

27 In our current system this type of query can easily be answered as the expenses are segregated but linked together by the Project ID code HAB for Hug a bears. Click next to continue. 27

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29 Each state requires TelecomPioneers to: Be registered with the Secretary of State to do business within the state. File state income returns. Obtain various other fundraising licensing as required. The State Code is used to filter financial transactions to pull the data requested by each state. The State Code represents the state where the transaction occurred or where the product is being shipped to. Most of the time this will be the state in which your Unit resides; this should only change if you are travelling or shipping a product out-of-state. Click next to continue. 29

30 Here are some examples of proper State Code usage. In the first example, A Pioneer located in the state of Georgia places an online order for books. The seller however, is located in the state of Washington. Since the books are being shipped to Georgia, the State Code on the TPF1 voucher should be GA. In the second example, A Pioneer who resides in the state of Oregon travels to the state of Massachusetts for a national meeting. Their plane ticket was purchased in Oregon, but the hotel and food was purchased in Massachusetts. The TPF1 voucher will have a separate line item for each transaction: The plane ticket will have the State Code for Oregon, and both the lodging and meals will have the state code for Massachusetts. Click Next to continue. 30

31 Although, TelecomPioneers is exempt from federal income taxes as a 501(c)(3), we are still required to file an annual return with the IRS. Since we are a charitable organization, the IRS requires completion of the Return of Organization Exempt from Income Tax Form 990. On the IRS Form 990, we report how much is spent and received on: Fundraising Charitable Projects and Programs Administration Click Next to continue 31

32 Fundraisers are held to generate additional revenue to support the Units projects and programs. Some examples of fundraisers are Golf tournaments, gaming, and sales. Click next to continue. 32

33 Income and expenses that aren t connected to fundraising efforts or projects and programs are categorized as General and Administrative. Some examples of these transactions include bank interest and fees, membership dues, membership retention activities like monthly luncheons and meetings as well as donations received that were not raised during a fundraiser. Click next to continue. 33

34 Projects and programs are charitable activities that coincide with the Pioneers mission, and the better business bureau wise giving alliance standards for charitable activities. A project is a short term goal with an end date; a program is a long term goal without an end date. Please click next to continue. 34

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36 In this lesson you ve learned the purpose of Transaction Codes and why they are used. The Project ID is used to assign income and expense accounts to specific events, activities or projects; which can be helpful for budgeting and planning future events. The State Code is used to identify where the transaction occurred or where the product was delivered. This data is needed for tax filings, registrations and licensing. The 990 code is used to allocate transactions for the IRS Form 990 between General and administrative, fundraising and projects and programs. Click next to continue. 36

37 You are now familiar with the Pioneers General Ledger and how financial transactions are recorded. The following slides contain coding examples of our most frequently processed transactions. Please refer to the Pioneers Project ID Listing and the GL Account Code Glossary to verify the best coding practices for your Unit s specific activities. In order to receive credit for completing this training session, you may proceed to the General Ledger Certification Quiz; otherwise, please click the next button below to view the coding examples. 37

38 You may select from the most common charitable transactions or click next to review the first example. 38

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44 You may select from the most common fundraising activities or click next to review the first example. 44

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51 You may select from the most common administrative transactions or click next to review the first example. 51

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54 You may select from the most common membership or fellowship transactions or click next to review the first example. 54

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