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Business and Financial Policies and Procedures

Reconcile General Ledger (GL) and Operating Ledger (OL) Balances

Before You Begin

Units with self-supporting activities must regularly reconcile operating ledger details to fund balances.

Ensure that you have access to EDDIE and/or View Direct before beginning this procedure.

Begin

To reconcile general ledger and operating ledger balances:

  1. After the accounting period has closed at the end of a month, access your fund's Asset/Liability Detail Statement and Revenue/Expense/Transfer Detail Statement in EDDIE or View Direct. 
  2. Identify the beginning and ending fund balances in the general ledger, and the fund's fiscal year-to-date revenue, expense, and transfer balances in the operating ledger(s), as of the month just ended. Make note of the following account totals in preparation for Step 3:
  • Total revenues
  • Total personnel and total non-personnel expenses
  • Total transfers
  • Total encumbrances
  1. Verify that:

The month's beginning fund balance
                +
The net operating ledger activity for the month (revenue and incoming transfers less expenses and outgoing transfers)
-------------------------------------------------
= The month's ending fund balance

  1. Compare the following data from the fund's general ledger (CM Ending Bal) and operating ledger (Year to Date) statements:
  • GL "Revenue Control" and OL "Total Revenues"
  • GL "Expense Control" and OL "Total Personnel plus Total Non-Personnel Expenses"
  • GL "Transfer Control" and OL "Total Transfers"
  • Sum of GL "Encumbrance Control" and "Commitment Control" to OL "Total Encumbrances"
  1. If the balances do not match operating ledger and general ledger totals, follow the steps in Identify and Correct Rogue (Misclassified) C-FOAPAL Transactions.

Related Policies and Procedures

Monitor a Self-Supporting Fund
Identify and Correct Rogue (Misclassified) C-FOAPAL Transactions
Section 19: Request Access to University Business Financial Information

Additional Resources

Guide to Finding Your Accounting String Balance (Portrait)
Job Aid Running the Asset/Liability Statement
Job Aid Running the Asset/Liability Transactions Report
Job Aid Running the Revenue/Expense/Transfer Statements

Understanding University Financial Statements and the Reconciliation Process (GL 104)
Avoiding Problems with Your Self-Supporting Fund
JV Feeder Document Prefixes
JV Rule Codes

Last Updated: May 2, 2017 | Approved: Senior Associate Vice President for Business and Finance | Effective: January 2013

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