Basic Accounting Concepts - GE Accounting

Basic Accounting Concepts & GE
Accounting
Mark Kingston
December 2004
2 Basic Accounting Concepts
Mark Kingston
December 2004
What must Controllership produce?
PROPHET WIZARD

Quarterly reporting to GECF Corporate
Reporting 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 reporting either
from local systems or from Oracle

Mark Kingston
December 2004
What must Controllership produce?
Oracle GL
Local
GL
Oracle
Subledgers
(AP/FA)
Local
Subledgers
Local Statutory /
Regulatory
Local Statutory
US Regulatory
CDR
Submissions
Local Regulatory
Wizard / Prophet Lite businesses
Prophet businesses
Mark Kingston
December 2004
Basic Accounting Concepts
Mark Kingston
December 2004
The General Ledger Double Entry
Accounting
Transaction: An event or happening that changes
financial 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 and
one credit entry. This is called Double Entry
accounting, and is done via a journal entry.
Mark Kingston
December 2004
Debits & Credits What are they?
A Debit: What do you own, or what are you owed? E.g.
Cash in a bank account / A tangible asset that belongs
to you / Money owed from customers / An expense
A Credit: What do you owe to others? E.g. Money owed
to suppliers / Money owed to lenders / Revenue
A Debit value is generally recorded as a +ve figure, a
Credit value is generally recorded as a ve figure.
Debit & Credit values can be summarised to report a net
balance on any particular account.
The net effect of any transaction is zero.
Mark Kingston
December 2004
Debits & Credits What 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
Mark Kingston
December 2004
Accrual Method of Accounting
Income is reported in the fiscal period it is earned,
regardless of when it is received, and expenses are
deducted in the fiscal period they are incurred, whether
they are paid or not.
Therefore, there may be timing differences:
Revenue is recognized before cash is received.
Accrued
Revenue
Expense is recognized before cash is paid.
Accrued
Expense
Revenue is recognized after cash is received.
Deferred
Revenue
Expense is recognized after cash is paid.
Deferred
Expense
Mark Kingston
December 2004
Assume that we had received an invoice for the
stationery 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 to
reduce the creditor and reduce cash
Mark Kingston
December 2004
Assume that we had paid rent of 2,400 on a building
for 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.
Mark Kingston
December 2004
Balance Sheet
A statement of the financial position of a business
which 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 relationship
between them is expressed in this equation:
Assets = Liabilities + Equity.
Mark Kingston
December 2004
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
Accruals 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:
Mark Kingston
December 2004
Profit & Loss Statement
The Profit & Loss shows the business revenue and
expenses for a specific period of time (i.e. the
financial 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 that
distinguishes it from a balance sheet, is that the
amounts shown on the statement represent
transactions over a period of time.
Mark Kingston
December 2004
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)
Mark Kingston
December 2004
In summary
Five types of account: Asset / Liability / Equity /
Revenue / Expense
Debit:
Increase an Asset or Expense account
Decrease a Liability, Equity or Revenue account
Credit:
Increase a Liability, Equity or Revenue account
Decrease an Asset or Expense account

Mark Kingston
December 2004
The GECF Chart of Accounts
Mark Kingston
December 2004
Mark Kingston
December 2004
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
Accruals 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 461/462/463
Retained 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
Mark Kingston
December 2004
Sales 350
Cost of Goods Sold (130)
Gross Profit 220
Operating Expenses (175)
Net Profit Before Tax 45
Tax (15)
Dividends (10)
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
Mark Kingston
December 2004
Chart of Accounts CDR Account
Business
Legal Entity
Cost
Centre
CDR
Account
Sub Account
Analysis1
Analysis2
3
9 Alpha Numeric made up of:
GGG - General Ledger Account
Balance Sheet:
001-299 Assets
300-449 Liabilities
450 Minority Interest in Equity
451-499 Equity
Profit and Loss Statement:
500-599 Revenue (Earned income)
600-699 Interest Expenses
780-899 Operating and Admin. Expenses
970-987 Provision for Income Taxes
990 Minority Interest in Earnings
SSS - Sub Ledger
SSS - Sub Sub Ledger
Used to identify different types of account. E.g. Trial
Balance / Volume / Memo accounts.
Global Value Set
Analysis3
Mark Kingston
December 2004
Chart of Accounts
Business
Legal Entity
Cost
Centre
CDR
Account
Sub
Account
Analysis1
Analysis2
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 of an Oracle Account
Analysis3
7
2 alpha numeric
The company that the
transaction occurs in
The department that the
transaction relates to
The type of transaction or
event
Further detail on the type
of transaction
The Product / Project /
Client / etc that the
transaction relates to
Mark Kingston
December 2004
Chart of Accounts - BLE
Business
Legal Entity
Cost
Centre
CDR
Account
Sub Account
Analysis1
Analysis2
1
Controlled by Leeds
Determined based on BSLA
001 - 3 US Corp id (Legal Entity)

01 - Statutory
98 - Estimation
99 - US GAAP Adj
Global Value Set
Controlled by Stamford
eg.
Any changes to BLE must follow the logic and be approved by Leeds
A 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
Mark Kingston
December 2004
BSLA vs Business Legal Entity
Business Summary Level Acronym
The statutory legal bodies that form the ownership
structure of a GE company
BSLA
Unique Business Identifier
Exist for Internal Management Purposes
Legal Entity
Business can have a complex Legal Entity Structure
Mainly driven by Tax Efficiencies
BSLA: BCLJ PY 001 204 0CA 080 D66 205 A51 A52 A53
US Corp
Elimination
Corp
Funding
Corp
Local Corp
US Corp Equity Injection, Investment, Income & CTA Roll-up
Elimination Corp ConsolidationAvoid Duplicate Accounting
Funding Corp Daily Cash Flows, Hybrid Funding, Sub-Part F
Local Corp Local Accounting & US GAAP Adjustments
Unique Structure in GE Capital
Mark Kingston
December 2004
Legal Structure - Example
Denzel Auto
Leasing GmbH
40%
(GoldID W10331)
AVALEAS
Leasing GmbH
Bayern 100%
(GoldID W10326)
551 GE Service
Center GmbH
100%
(GoldID CK0295)
&S-Leasing
GmbH
50%
(GoldID W10371)
Austria
Legal Structure
= Run-off portfolio
= in Liquidation
General Electric Company
General Electric Capital Services, Inc.
001 General ElectricCapital Corporation
100% 100% 100%
J13 General Electric Capital Global Financial Holdings
100%
J53 General Electric Capital International Financing Corp.
100 %
P50 SERVICE BANK GmbH
100 % (GoldID W10389)
531 GE CAPITAL BANK GmbH
100 % (GoldID CK0202)

Einlagensicherung
der Banken und
Bankiers GmbH
(0,1% Anteil)

424 European
Investments
34%
545 Customized Auto
Credit Services
0,6%
401 Vehicle
Investments
1,9%
63,5%
Einlagensicherung der Banken und
Bankiers GmbH (0,1 % Ant.)
Mark Kingston
December 2004
Chart of Accounts Cost Centre
2
Xxxx - Global Standard
xXXX - User Defined
Global standards:
0xxx Balance sheet/ Income/ Non operating expenses
1xxx Business Development
2xxx Marketing
3xxx Sales Function
4xxx Operations (excl. Facilities)
5xxx Collections
6xxx Quality
7xxx Risk Management
8xxx Information Technology
9xxx Finance
Axxx Human Resources
Bxxx Legal
Cxxx Managing Director/ Central
Dxxx Product Development
Exxx Leadership Programs
Fxxx Other (incl. Facilities)
Local Value Set
CDR
Account
Sub Account
Analysis1
Analysis2
Cost Centre
Business
Legal Entity
Analysis3
Mark Kingston
December 2004
Chart of Accounts Sub Account
Business
Legal Entity
Cost
Centre
CDR
Account
Sub Account
Analysis1
Analysis2
4
4 Alpha Numeric, User Defined

The sub account is CDR dependent, ie same
numbers can be repeated with different CDR
Accounts.

Example: CDR 801001001 Personnel Expense:

1xxx Exempt
2xxx Non Exempt
3xxx Hourly Paid
x1xx Monthly Salary/ Regular Pay
x2xx Overtime
x3xx Meal Allowance
13xx Exempt Personnel/ Meal Allowance
Local Value Set
Analysis3
Mark Kingston
December 2004
Chart of Accounts Sub Account
However, 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 to
intercompany balance. Affiliate code held in DFF.
Intercompany Accounts (442) - Sub account used to identify US Corp with
which intercompany balance is held
Investment in Subsidiary (444), Retained Earnings Unrealised Gain/Loss on
FX (481051001 / 482051001), Earnings of Consolidated Affiliates (988001001)
- Sub account populated in Net Income & Foreign Exchange rolls. 1
st
digit
denotes whether NI or FX roll (N or F), last 3 digits denotes the US Corp from
which values have been rolled.

Mark Kingston
December 2004
Chart of Accounts Analysis Codes
Business
Legal Entity
Cost
Centre
CDR
Account
Sub Account
Analysis1
Analysis2
5
3 Alpha Numeric - Used for Product
Information

Xxx - Global Standard
xXX - User Defined
Global standards (extract):
1xx Sales Finance - Closed End
2xx Sales Finance - Revolving
3xx Consumer Loans - Closed End
4xx Consumer Loans - Revolving
5xx Commercial Loans - Closed End
NB. There are currently 29 globally defined product codes

3 Alpha Numeric - Used for Client /
Project Information
6
Analysis3
2 Alpha Numeric Usually spare
Local Value Set
Local Value Set
Local Value Set
7
Mark Kingston
December 2004
GECF Accounting Rules & Concepts
Mark Kingston
December 2004
Volume Accounting
What is Volume Accounting?
In examples until now, we have assumed that there is one account for
each type of transaction on the balance sheet. E.g. Any transaction
affecting 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 previous
year.
Mark Kingston
December 2004
Volume Accounting
What does Volume Accounting entail?
New activities are recorded in distinct SSS-SSS accounts
eg. 200-001-002 Fixed Assets Cost - Additions
200-001-003 Fixed Assets Cost - Disposals
200-001-004 Fixed Assets Cost - 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 volume
accounts at the previous year end
Why do we do Volume Accounting?
To provide analysis on the balance sheet between prior year and
current year activities

Mark Kingston
December 2004
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
Mark Kingston
December 2004
Intercompany Accounts
440 Accounts

Designed to record movement between Corporate and a Business or
between 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 where
both sides are recorded in the same BSLA, but in different Legal Entities.
Sub Ledger (442 10X) identifies the tier (of creditor)
CDR Edit
442-10X must be zero by BSLA ($100 tolerance)
442-10X Accounts are invalid in Corps. OCA and 9CA

Mark Kingston
December 2004
Intercompany Accounts
CDR Accounts used:
BSLA: ADMBBB
Corp: 001
BSLA: BCXDEM
Corp: 204
BSLA: BCYJPY
Corp: 204
BSLA: BCYJPY
Corp: 001
440
440
442: i/c, or
444: Equity
Mark Kingston
December 2004
Accounting Controls Related
Accounts
1)Financing Receivables: Allowance for Losses:
Current Year Receivable Losses Current Year Write-Offs

030 080
042 -XXX-005 Should Equal 081 -XXX-003
046 082
047

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

080 780
081 -XXX-002 Should Equal 781 -XXX-XXX
082 782

Mark Kingston
December 2004
Accounting Controls Related
Accounts
3) Allowance for Other Receivables Provisions for Losses
Current 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-XXX
182

5) Building and Equipment
Current Year Depreciation Depreciation and Amortisation

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

Mark Kingston
December 2004
Other Accounting Rules
Other accounting rules effectively defined by the CDR Edit Checks
Fundamental GE Accounting policy can be found in the Controllership
Fundamentals course materials
E-Finance Training Workplace
http://efinance.gcf.capital.ge.com/compass/gcfcfs.nsf/docs_Wkgrp_ByHi
ts/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
Mark Kingston
December 2004
The Corporate Data Repository (CDR)
Mark Kingston
December 2004
CDR Feeds
Corporate Data Repository
Primary Book Reporting Book
MF
Feed
Func
CCY
Orig
CCY
Tfrrd to
Rptg
Book
Orig
CCY
MO &
MF
Feed
USX
AU &
MU
Feed
Three Feeds are submitted
each month sourced by
Currency from different
books
Prior to Consolidation the
Feeds Pass Through the
Data Parking Lot Edit
Checks run at this point
CDR - the Books & Records
of the Company Used for
Management, Statutory &
Tax Reporting
MRC
Data Parking Lot
Mark Kingston
December 2004
CDR Feeds
4 Types of Feed from Oracle GL to Central Data Repository
A currency a transaction occurs in
Currency of the primary economic
environment in which the affiliate
operates
Reporting Currency is the US$,
the currency in which General
Electric prepares its consolidated
financial statements
Definition Data Feed
MO
(Full TB)
MF
(Full TB)
AU - hard close
(quarterly full TB)
MU - soft close
(440 accounts only)
Originating Ccy
Functional Ccy
Reporting Ccy
Mark Kingston
December 2004
Primary & Reporting Books - MRC
MRC Process
PRIMARY
BOOK
Local Reporting
REPORTING
BOOK
GE Reporting
ORIGINATING

100 GBP
145 Euro
300 USD
FUNCTIONAL
GBP
100 GBP
100 GBP
200 GBP
REPORTING
USX
150 USX
150 USX
300 USX
ORIGINATING

100 GBP
145 Euro
300 USD
Conversion from
Originating to
Functional &
Originating to
Reporting done at
Monthly Operating
Rate
Mark Kingston
December 2004
GE Exchange Rates
http://finance.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 during
the 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-end
and for the following two months, before a new balance
sheet rate is issued.
Mark Kingston
December 2004
Monthly Finance Closing Process
Mark Kingston
December 2004
Oracle Closing Process
Perform
Remeasurement
in the Primary
set of books
Perform
Translation
in the Reporting
set of books
Perform
Roll-ups in the
Reporting
set of books
Submit to CDR
Mark Kingston
December 2004
Perform
Remeasurement
in the Primary
set of books
Perform
Translation
in the Reporting
set of books
Perform
Roll-ups in the
Reporting
set of books
Submit to CDR
Mark Kingston
December 2004
Revaluation
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/loss
Reporting 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)
Mark Kingston
December 2004
Volume Accounting
Additional FX accounts ensure compliance with the translation requirement
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
_______ ________ ________

Mark Kingston
December 2004
Perform
Remeasurement
in the Primary
set of books
Perform
Translation
in the Reporting
set of books
Perform
Roll-ups in the
Reporting
set of books
Submit to CDR
Mark Kingston
December 2004
NI & FX Rolls Corp 080
GE GAAP Accounting requires that a subsidiarys Currency Translation
Adjustment (CTA), the unrealised gains/ losses on Foreign Currency
recorded 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 Roll?
GE GAAP Accounting requires that a subsidiarys income be rolled-up to
its 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 Roll?
Both roll-ups use the same functionality within Oracle GL
Mark Kingston
December 2004
Net Income roll-up
GE GAAP Accounting requires that a subsidiarys income be rolled-up to
its 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 roll?
US Corp Net Inc Roll-up effect Total Net Inc
001 (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 double
counting of Net Income and Currency translation effects across a BSLA
Mark Kingston
December 2004
Net Income roll-up - Example
GE100101
GE1J5301
GE1ABC01
GE120401
If the Net Income of these corps is:
GE100101 $ 10,000
GE1J5301 $ 20,000
GE1ABC01 $250,000
GE1XYZ01 $ 40,000
GE120401 $ 70,000
what will the Net Income be in the
following Corps after the rolls have
been performed?
001 / J53 / ABC / XYZ / 204 / 080?
(assuming 100% ownership)
GE1XYZ01
Roll ups occur from each entity to every entity which has a stake in that
entity
Mark Kingston
December 2004
After roll-up:
GE100101 $ 390,000
GE1J5301 $ 310,000
GE1ABC01 $ 290,000
GE1XYZ01 $ 40,000
GE120401 $ 70,000
GE108001 $-710,000
Total $ 390,000
Net Income roll-up - Example
Before roll-up:
GE100101 $ 10,000
GE1J5301 $ 20,000
GE1ABC01 $250,000
GE1XYZ01 $ 40,000
GE120401 $ 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 $40,000
from 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
Mark Kingston
December 2004
Perform
Remeasurement
in the Primary
set of books
Perform
Translation
in the Reporting
set of books
Perform
Roll-ups in the
Reporting
set of books
Submit to CDR
Mark Kingston
December 2004
CDR Submissions
MF
Feed
Func
CCY
Orig
CCY
Tfrrd to
Rptg
Book
Orig
CCY
MO &
MF
Feed
USX
AU &
MU
Feed
books
Tax Reporting
MRC
Data Parking Lot
Mark Kingston
December 2004
CDR Submissions
MF
Feed
Func
CCY
Orig
CCY
Tfrrd to
Rptg
Book
Orig
CCY
MO &
MF
Feed
USX
AU &
MU
Feed
books
Tax Reporting
MRC
Data Parking Lot
Mark Kingston
December 2004
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
Mark Kingston
December 2004
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 balance
sheet accruals

Account Validation
- Some accounts are only valid or not valid in specific entities
eg. - 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
Mark Kingston
December 2004
CDR Submission whats included?
Typical line from a CDR Feed
BSLA
CDR
Account
Affiliate
Code
Date Balance
LE Currency
Feed
Type
Entered
Description
GLID
General Ledger Identifier allows each businesss submission to
be recognised in the CDR. A business can only have 1 GLID, but
1 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:
Mark Kingston
December 2004
Cost Centre and Analysis Codes
details not taken to the CDR
CDR vs Oracle Account
3 digit
LE code
CDR
Account
Actual sub account not taken to
the CDR however Affiliate
Code linked by sub account
Specified
when
sending feed
Balance
held on
account
Description
entered when
sending feed
Specified
when GL
is created
BSLA is linked to the
first 3 digits of the
Oracle LE
Reconciling CDR Feed To Oracle Account Key:
Oracle Account Key
CDR Feed
AAL40101.HW13.440001012.A900.000.000.000
Dependant
on feed
being sent
Mark Kingston
December 2004
Who is using what?
Oracle GL
All Local & US
GAAP adjs done on
Oracle
Closing performed
by business
Local GL, interfaced
to Oracle GL
US Legal Entities
held in Oracle GL
Closing performed
by business
Local GL, interfaced
to Oracle GL
Closing performed
by 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
Mark Kingston
December 2004
What differences are there?
PROPHET
PROPHET
LITE
WIZARD
Local/US
GAAP adjs
in Oracle
GE
Clo
sin
g in
Ora
cle
Sub
mit
to
CD
R
Local/US
GAAP adjs
in local
ledger
Inte
rfac
e to
Ora
cle
GL
US
GA
AP
adj
s in
Ora
cle
GL
GE
Clo
sin
g in
Ora
cle
Sub
mit
to
CD
R
Local/US
GAAP adjs
in local
ledger
Inte
rfac
e to
Ora
cle
GL
US
GA
AP
adj
s in
Ora
cle
GL
GE
Clo
sin
g in
Ora
cle
Sub
mit
to
CD
R
Carried out by local business Carried out by GECIS
Mark Kingston
December 2004
Any questions?

Basic Accounting Concepts - GE Accounting

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