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General Ledger Coding Training Last Updated: 02/26/13

General Ledger Coding Training Last Updated: 02/26/13. CLICK HERE TO BEGIN. OR. If you are resuming or returning to reference a section click this button. Returning Visit. Navigating this Presentation. There are arrows in the lower left corner that may be hidden

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General Ledger Coding Training Last Updated: 02/26/13

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  1. General Ledger Coding TrainingLast Updated: 02/26/13 CLICK HERE TO BEGIN OR If you are resuming or returning to reference a section click this button Returning Visit

  2. Navigating this Presentation • There are arrows in the lower left corner that may be hidden • Move your mouse to the lower left corner just under today’s date • The arrows should appear • Use these arrows to continue to the next page or go back to a previous page • To leave this presentation you may push the ESC button on your keyboard, or right click with your mouse and select End Show from the menu • When you would like to resume, click the Returning Visit button from the title page; this will take you to an Overview page where you can select any section to return to the beginning of that section. • If you are ready to continue please click the forward arrow below (lower left) GL Coding Training

  3. Important Notice We are working to improve our general ledger. • Any changes to the general ledger will be published in PAC Tips newsletter. • This presentation will be updated accordingly. CLICK HERE for the GL Account Code Glossary GL Coding Training

  4. Recent Account Code Updates The following account codes are inactive: • 15004–Inventory Stores: Please use 15003-Inventory General • 15005–Inventory Cookbooks: Please use 15003-Inventory General • 60030-Books: Please use 60074-Supplies/Equipment/Materials • 40030-Books: Please use 40029-Contributions • 60064-Disaster Relief: Please use 60066-Monetary Contributions • 60065-Memorial: Please use 60066-Monetary Contributions • 60095-Materials: Please use 60074-Supplies/Equipment/Materials • 60071-Printed Material: Please use 60037-Publications & Printing • 60072-Printing & Copying: Please use 60037-Publications & Printing • 60096-Parking: Please use 60017-Travel & Parking The following account codes have been updated: • 60066-Special Causes: Renamed to Monetary Contributions • 60074-Supplies: Renamed to Supplies/Equipment/Materials • 60037-Publications: Renamed to Publications & Printing • 60017-Travel: Renamed to Travel & Parking GL Coding Training

  5. Introduction Thank you for your participation in the General Ledger (GL) Coding session. Today you will be learning about the Pioneers chart of accounts and transaction codes that make up our general ledger. Welcome! GL Coding Training

  6. Overview For returning visitors: You may click the return button next to a topic to resume at the beginning of that topic; otherwise, please click the arrow (lower left) to continue. • Lesson 1 – General Ledger • Pioneers Units • Unit Numbers • Chart of Accounts • Income & Expense • Lesson 1 – General Ledger • State Transaction Code • Project ID Code • 990 Transaction Code • Lesson 2 – Coding Common Transactions • Charitable Projects & Programs • Fundraising • Administrative • Fellowship/Membership GL Coding Training

  7. Lesson 1: Objectives After completing this lesson you will: • Understand unit numbers and how they are used; • Understand how the chart of accounts is used and why it is important; • Understand how transaction codes are used and why they are important. GL Coding Training

  8. Lesson 1: General Ledger • A general ledger is an accounting record that uses double-entry bookkeeping. • Double-entry bookkeeping is a process where each transaction is recorded twice (with a Debit and a Credit); which helps ensure accuracy in the record. • Debits and credits are recorded using account codes from the chart of accounts. We also use transaction codes to help us organize the account codes for additional detail: • State Code • Project ID Code • 990 Code GL Coding Training

  9. Lesson 1: General Ledger GL Coding Training

  10. Lesson 1: IRS Status • TelecomPioneers is a 501(c)(3) non-profit corporation; tax identification number (TIN) 16-1634095. • All Regions, Chapters, Councils, and Clubs operate under TelecomPioneers TIN 16-1634095 CLICK HERE for the Pioneers Financial Practices GL Coding Training

  11. Lesson 1: Pioneers Units Prior to 2012, Pioneers was sponsored by phone companies in the U.S. and Canada: GL Coding Training

  12. AT&T Region CenturyLink Region Verizon Region FairPoint Region Frontier Region Lesson 1: Pioneers Units The Chapters are divided into groups based on their former sponsor company called Regions: The New Outlook Region is a group of chapters that did not have a sponsor. GL Coding Training

  13. Lesson 1: Pioneers Units • In 2012 TelecomPioneers became a self sustaining organization that would no longer be funded by the sponsoring companies. • These companies are now referred to as Affiliates, but the Chapters are still grouped into the same Regions as their affiliate company. GL Coding Training

  14. Lesson 1: Pioneers Units • Within each Region the membership is organized into various Chapters. • Within a Chapter, the membership may also be organized into Councils. • Within a Council, the membership may also be organized into smaller Clubs. Chapters, councils, and clubs are usually formed based on membership and geographic needs. GL Coding Training

  15. Lesson 1: Pioneers Units • When referring to the collective Regions, Chapters, Councils and Clubs we use the term Pioneers Units. • A Pioneers Unit may be a Region, a Chapter, a Council or a Club. GL Coding Training

  16. Lesson 1: Unit Numbers Pioneers Units have a number that is used to identify them. • A Chapter number is determined by the order in which their charter was formed. • A Council or Club number is determined by the next available number in our accounting records. GL Coding Training

  17. TelecomPioneers Headquarters (HQ) TIN 16-1634095 HQ Finance Dept. Pioneers Accounting Centers HQ Marketing/IT Region Accounts Chapter Accounts Councils Clubs Lesson 1: Organization Chart GL Coding Training

  18. Lesson 1: Unit Numbers Within our accounting software, Pioneers Units are classified into funds, and each fund is assigned a restriction by its starting number. 1 - Unrestricted 2 - Temporarily Restricted 3 - Permanently Restricted GL Coding Training

  19. Lesson 1: Unit Numbers GL Coding Training

  20. Lesson 1: Unit Numbers • A fund is a unit number that is made up of a restriction, chapter and sub-unit. Restriction + Chapter + Council/Club • These Pioneers Unit Numbers are a unique number used to identify the group and build reports. GL Coding Training

  21. Restriction + Chapter + Council/Club GL Coding Training

  22. Lesson 1: Pioneers Units GL Coding Training

  23. Lesson 1: Chart of Accounts Is… • …a set of numerical codes that categorize how money is spent or received. • …the codes help organize financial information into categories like assets, liabilities, income, expenses, etc. GL Coding Training

  24. Lesson 1: Chart of Accounts By organizing our financial transactions into codes we are able to: • Report our financial standing to government entities; i.e. IRS and State; • Plan and budget our activities and projects; • Monitor our budgets; • Report our financial position to donors. GL Coding Training

  25. Lesson 1: Chart of Accounts Assets are items that are cash or have cash value: • Bank accounts • Inventories Liabilities are money that is owed: • Sales Taxes • Use Taxes Net Assets is the overall value or worth of the unit; the difference between Assets minus Liabilities. GL Coding Training

  26. Lesson 1: Chart of Accounts Income or Revenue accounts are used to demonstrate how money is received; e.g.: • Fundraising • Membership Dues • Contributions Expense accounts are used to demonstrate how money is being spent; e.g.: • Supplies • Monetary Donations Net Income is the total profit or loss for a period of time; the difference between the income received minus the expenses. GL Coding Training

  27. Lesson 1: Chart of Accounts Assets, liabilities, income, and expenses can be identified by their starting numbers or series: CLICK HERE for the GL Account Code Glossary GL Coding Training

  28. Lesson 1: Income & Expense (I&E) Accounts For coding TPF1 vouchers: Deposits always start with a Sales Deposits always start with a Sales Expenses always start with a Expenses always start with a 4 49 55 6 GL Coding Training

  29. Lesson 1: Income & Expense (I&E) Accounts With some exceptions, I&E accounts are usually matching sets: 40022 Meals for members/volunteers 60022 40019 Registration Fees 40020 60019 Recognition/Gifts 60020 GL Coding Training

  30. Lesson 1: Account Number Quiz GL Coding Training

  31. Lesson 1: State Transaction Code Each U.S. State requires TelecomPioneers to: • Be registered to do business in the state (Secretary of State); • File State Income Returns; • Obtain various fundraising licensing (resale, gaming, etc.) GL Coding Training

  32. Lesson 1: State Transaction Code… • …represents the U.S. State where the transaction was incurred or where the product is being shipped to; most of the time this will be the state in which your Unit resides. • …is needed in order to file state income returns and when applying for, or renewing, various state licensing. • …should only change if you are traveling or shipping a product out-of-state. GL Coding Training

  33. Lesson 1: State Transaction Code Example Example 1: • A Georgia Pioneer places an online order for books. • The vendor is located in Washington, but the books are being shipped to Georgia. • The state code on the TPF1 should be GA (where the final product ended up). GL Coding Training

  34. Lesson 1: State Transaction Code Example Example 2: • An Oregon Pioneer traveled to Massachusetts for a Pioneers meeting. • Their plane ticket was purchased in Oregon, but the hotel and food were purchased in Massachusetts. • The state code for the plane ticket purchase should be OR. • The state code for the hotel and food should be MA. GL Coding Training

  35. Lesson 1: Project ID Codes… • …are acronyms, or one word descriptions, used to assign I&E accounts to specific events, activities or projects. • …enable the PAC to provide (upon request) financial reporting per event, activity or project. • …enable Pioneers Units to have better planning and budgeting for their activities. CLICK HERE for a listing of Project ID Codes GL Coding Training

  36. Lesson 1: Project ID Codes Prior to the 2010 software conversion, if a TPF1 was submitted to reimburse Hug-A-Bear expenses as follows: • Stuffing & Fabric ($20) • Parking @ the workshop ($5) • Shipping for the bears ($10) All of these items were previously recorded under 6053-Health & Human Services If, at any time, someone requested how much was spent shipping Hug-A-Bears, it was not possible to retrieve that information. GL Coding Training

  37. Lesson 1: Project ID Codes Now, if a TPF1 is submitted we use I&E accounts to show how the money was spent, and the Project ID to show what the money was spent on: Project ID = hab (Hug-A-Bears) • Stuffing & Fabric ($20) • 60074 Supplies/Equipment/Materials • Parking @ the workshop ($5) • 60017 Travel & Parking • Shipping for the bears ($10) • 60070 Postage & Shipping GL Coding Training

  38. Lesson 1: Project ID Codes GL Coding Training

  39. Lesson 1: 990 Transaction Code Though we are exempt from federal income taxes as a 501c3, we are still required to file an annual return with the Internal Revenue Service (IRS). Since we are a charitable organization, the IRS requires the completion of the Return of Organization Exempt From Income Tax Form 990 GL Coding Training

  40. Lesson 1: 990 Transaction Code On the IRS Form 990 we report how much we spent and received on: • Fundraising • Charitable Projects and Programs • Administration CLICK HERE for Pioneers Financial Practices GL Coding Training

  41. Lesson 1: 990 Transaction Code Fundraising (Fund.) Fundraising (Fund.) – Any activity undertaken to generate revenue; used to augment membership dues and sponsor support. Examples: • Golf Tournament, Bowl-A-Thons, etc. • Gaming (raffles, lotteries, bingo) • Stores • Sales (candy, nuts, calendars, cookbooks, etc.) • Vendor Sales (commission arrangements, etc.) GL Coding Training

  42. Lesson 1: 990 Transaction Code G&A General/Administrative (G&A) – Sources of income or expenses not related to an activity undertaken to general revenue; i.e. transactions needed in order to conduct business. Examples: • Bank Interest/Service Charges • Membership Dues • Membership Retention (luncheons, picnics, social gatherings, etc.) • Unsolicited & Unspecified Donations GL Coding Training

  43. Lesson 1: 990 Transaction Code P&P Projects & Programs (P&P) – A charitable activity that meets the Pioneers' mission, and the Wise Giving Alliance Standards for charitable activity. A project is a short term goal with an end date; a program is a long term goal without an end date. Examples: • Donor Restricted Contributions specific to a project, program or cause. • Any charitable project for educational, environmental, life enrichment, military, health, or human services. GL Coding Training

  44. Lesson 1: 990 Transaction Code GL Coding Training

  45. Lesson 1: Wrap-Up • Unit Numbers: Please include your unit number on any correspondence to help ensure your Pioneers Units’ transactions are recorded correctly. • I&E Accounts: Budgets are created and monitored based on these numbers. These numbers are used to report our financial position to donors and government entities. • State Transaction Code: Where the transaction was incurred, or where the product was shipped to. The state code is used to file state income returns and apply for (or renew) various licenses for the Pioneers Units to conduct fundraisers in their local area. GL Coding Training

  46. Lesson 1: Wrap-Up • Project ID Codes: Enables us to provide detailed financial reports for specific events, activities or projects; which can be helpful for budgeting and planning. • 990 Transaction Codes: Allows us to organize financial data for the IRS Form 990, the 65% Rule and the 35% Rule. CLICK HERE for the Pioneers Financial Practices GL Coding Training

  47. Lesson 2: Objectives After completing this lesson you will: • Identify the appropriate income/expense code for common transactions; • Identify the appropriate Project ID code for common transactions; • Identify the appropriate 990 code for common transactions. GL Coding Training

  48. Lesson 2: Coding Examples • The following examples are based on our most frequently processed transactions. • Please refer to the Pioneers Project ID listing and the Account Code Glossary to verify the best coding options for your specific activities, • Or contact your Chapter Treasurer for assistance. GL Coding Training

  49. Lesson 2: Coding Charitable Projects & Programs The following are the 5 most common charitable transactions: • For the Military & Veterans • For the Challenged or Disabled • Holiday Projects • Educational Projects • Sewing/Knitting Projects GL Coding Training

  50. Project ID: mility Military Care Packages USO Socks for Soldiers Operation Shoebox Project ID: vet Veterans Nursing Home Honor Flight Wreaths Across America Veterans Administration (VA) Lesson 2: Military & Veteran Projects Charitable activities that support the military and veterans. GL Coding Training

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