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Sometimes external auditors don't know how to ask for exactly what they need.
The external auditor should ask you to show reconciliation between the ledger and its various subledgers. If you are a manufacturer or a retailer, they should also be interested in how you are calculating the standard costs and actual costs of production and of sales. Previous writers are correct we need a more detailed requirement from you.
I would start with a purchase order, and then show the g/l accounting for the receipts into GR/IR, then to accounts payable, and out the door in a disbursement. Show the accounting for the difference (tolerance) between the PO costs and the invoiced amounts. Show how the costs make it to inventory, expense, or fixed assets, etc., and explain the depreciation areas. The main part the external auditor should want to see is the recon between accounts payable reconciling account and its subledger vendor accounts; inventory reconciling accounts and the subledger inventory listings; fixed assets reconciling accounts and the subsidiary as reflected on the balances report or asset history sheet report. Then do the same on the accounts receivable/SD side of things.
Your auditor could be asking you about whether your expenditures are expensed or capitalized - and how the capitalization works, such as to use WBS elements and AuCs.
Regards
| | | ---------------Original Message---------------
From: Lyle Lumsden
Sent: Monday, September 05, 2011 9:38 AM
Subject: SAPs Automatic Reconcilation Tunction - Tracking Transactions from 1 Module to Another
Dear SAP Gurus.
I am an Internal Auditor and I've been asked to demonstrate the way SAP processes transactions from FI to CO to the external auditors.
My basic understanding of the way SAP does this is that transactions are posted to the Special Purpose Ledger - Reconcilation sub Ledger where they are grouped amd linked to the Controlling module. Once there we can report on the cost/profit center for the final accounts.
Hopefully I've got it right so far.
What I need to do is demonstrate this. So is there a report or some clever manner to clearly show the transactions going into the reconcilition ledger, being totaled, and then being posted to the the cost/profit centers.
Ideally in addition I'd like to demonstrate that we have configured the system properly. would the Chart of accounts show the reconciliation ledger? I believe this special ledger is a mandatory automatic posting only ledger but demonstrating that will probably answer the question before they ask it.
Any help would be much appreciated
Regards
Lyle |
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