General Error Correction (GEC) versus Distribution of Income and Expense (DI)
Document | Purpose | Pros | Cons |
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GEC | To correct erroneous accounting string data for general ledger entries generated from other financial transactions. |
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DI | To distribute the income or expense, assets and liabilities from a holding account to one or more appropriate accounts when one account has incurred expenses or received income on behalf of one or more other accounts. |
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What is “accounting string data?”
- Account, sub-account, object, sub-object, project code values
What constitutes “erroneous?”
- Incorrect account, sub-account, object, sub-object and project code values
- Accounting string data was missing from the posted transaction
General Guidance
Use the GEC...
- If the accounting string data on the original entry was not correct and you need to “correct,” “reclassify,” or “move” the transaction
- To correct the account, sub-account, object, sub-object and project code to which a transaction is posted
- Always complete the error certification tab to document what is being corrected even when it is not required
Common GEC uses:
- Reverse current year use tax
- Incorrect account (sub-account) or object code (sub-object) was used
- Forgot to include T# in Org Ref ID for travel
- Forgot to include a project code on original transaction
- Correct PCard transaction that auto-approved
The GEC must be used for sponsored accounts
Use the DI...
- If the accounting string data on the original entry was correct and you are now creating additional entries to “allocate” or “distribute” the entry
- To distribute a lump sum transaction (income or expense) to multiple accounts, sub-accounts, objects, sub-objects or project codes
Common DI uses:
- Distribute a deposit that posted to a holding account to various accounts
- Reallocate expense that hit a clearing account to departmental accounts
- Distribute a deposit to revenue object codes
- Monthly (or quarterly) allocations of revenues or expenses
- Allocate a portion of an expense to another account
- Allocate a lump sum of income or expense to a sub-account or project code
- Reverse prior year use tax
The DI may not be used for sponsored account expense transfers, with the exception of prior year transfers that cannot be processed on a GEC. An error certification form must be attached to the DI justifying the expense transfer.