Reconciliation of Assets to General Ledger

The Flinders Finance System Assets module which records the university assets is directly integrated with the Purchasing, Payables and General Ledger modules.

Data relating to an addition to the asset register is initially recorded in the Purchasing module when a purchase order is raised. When the asset has been received and invoiced, the Payables module inputs data for the payment process from Purchasing.

At the end of each accounting period all assets recorded in the Accounts Payable module are transferred en-masse to the Assets module.

The amount paid will have been recorded in the General Ledger and the same figure will be picked up for the transfer to the Asset module.

In addition to the ‘mass transfer’ from Accounts Payable, items may also be added direct to the Asset Register, eg. donations.

A reconciliation of the Asset and General Ledger modules is therefore required.

At the end of each accounting period the Asset Register will be reconciled with the General Ledger asset accounts.

10.8.1 At the end of each accounting period a report showing the additions and retirements from the Asset Register and the cumulative value of each asset category will be generated from the Flinders Finance System.

10.8.2 A General Ledger account enquiry report will be generated for each class of asset.

10.8.3 The two reports will be compared and any discrepancy arising will be investigated and corrective action will be initiated to bring the two reports into balance.