|Effective Date||March 1, 2015|
|Author / Maintainer||Director, Accounting and Corporate Reporting|
|Responsibility / Owner||Vice-President and Chief Financial Officer|
|Related to Rules and Procedures, Guidelines||Rules and Procedures on external financial statements|
|Related to Policy||Policy on Accounting and Financial Reporting|
The objective of this Directive is to ensure consistency across the Corporation regarding the creation, deletion and maintenance of General Ledger (GL) accounts and the opening/closing of GL accounts for the period.
|Audience||Any personnel utilizing the General Ledger|
|Processes||The creation, deletion and maintenance of GL accounts |
The opening/closing of GL accounts for the period
|Exception||Cost center and Work Breakdown Structure (WBS)|
- GL accounts must not be created for short-term initiatives/projects, or to capture details, such as departments or positions.
- GL accounts must be common across all Departments where the underlying transactions/balances are common.
- The Corporation must record its financial transactions in GL accounts maintained at the level of detail necessary to meet financial reporting requirements. Creating a new GL account should improve the reporting ability of SAP for key stakeholders by either making necessary reporting data available, or by making it more efficient to obtain.
- It is not necessary to create and maintain a new account if the information can be reliably obtained in sufficient detail using another system. Prior to requesting the creation of a new GL account, the requester must ensure that:
- The number of accounts is manageable; and
- The required level of information cannot be obtained through other accounts, reporting mechanisms, systems, or sub-systems.
- Requests for new GL accounts must be sent to the following electronic mailboxes:
- Corporate Reporting (firstname.lastname@example.org); and
- Director Accounting and Corporate Reporting
- The Director Accounting and Corporate Reporting must:
- Approve the creation of all new GL accounts, and all changes to GL accounts;
- Ensure that all GL accounts are accurately mapped to external financial statement lines;
- Ensure that all cost centres have been mapped to GL accounts;
- Ensure that SAP WBS (work breakdown structures) are mapped to SAP cost centres;
- Ensure that the chart of accounts is reviewed regularly;
- Review dormant GL accounts and cost centres; and
- Delete GL accounts and cost centres that are no longer required.
Re-Opening the General Ledger
- The GL is closed monthly based on a pre-determined accounting period close calendar.
- In cases where the GL must be re-opened to post journal entries after the designated period close date, the Corporate Controller or the Director of Accounting and Corporate Reporting must approve a request sent to SAP Master Data.
- SAP Master Data will then provide access to the GL to the minimum number of CBC/Radio-Canada finance employees possible.
- The GL period will be re-closed at the earlier of:
- Upon completion of the posting or
- At end of the same business day.
All questions pertaining to the interpretation or application of this Directive should be referred to the Director, Accounting and Corporate Reporting.