Driective General Ledger Accounts

GENERAL

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

OBJECTIVE

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.

SCOPE

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
Systems SAP
Exception Cost center and Work Breakdown Structure (WBS)

STATEMENTS

  1. GL accounts must not be created for short-term initiatives/projects, or to capture details, such as departments or positions.
  2. GL accounts must be common across all Departments where the underlying transactions/balances are common.
  3. 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.
  4. 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:
    1. The number of accounts is manageable; and
    2. The required level of information cannot be obtained through other accounts, reporting mechanisms, systems, or sub-systems.
  5. Requests for new GL accounts must be sent to the following electronic mailboxes:
  6. 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

  1. The GL is closed monthly based on a pre-determined accounting period close calendar.
  2. 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.
  3. SAP Master Data will then provide access to the GL to the minimum number of CBC/Radio-Canada finance employees possible.
  4. The GL period will be re-closed at the earlier of:
    1. Upon completion of the posting or
    2. At end of the same business day.

INQUIRIES

All questions pertaining to the interpretation or application of this Directive should be referred to the Director, Accounting and Corporate Reporting.

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