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It could be a foreign exchange adjustment, so let’s see. We want to see what kind of journal entry it is. We can go up here and we can see whether or not we’ve been able to categorise that thing as something such as an accrual or a foreign exchange adjustment, or it’s more likely to be a foreign exchange adjustment, or something like that.
So, in this filter, the journal entry description filter is really interesting because what we see in this filter is an automated classification of all of your journal entries. We typically want to say, what is this journal entry like? What is it doing? Is it a customer invoice? Here you can see they’re greyed out because this isn’t to do with customer invoice. You’ve got customer invoice reverse, or you’ve got customer payment, customer payment reverse, or you’ve got customer adjustment.
That just means like debit customer, credit customer, or the other way around. And you’ve got all these different journal entry descriptions in here. And these are all automatically generated, right? So inside the Qlik App, it’s like we have a whole lot of rules, and it’s based on lots of different tables inside the chart of accounts.
So you’ve got like T030, loads of different, you know, T012K, all these different things. Lots and lots of different tables that are configuration tables in SAP. And they’re really helpful because they tell you that this account is a type of account that’s used for disbursements, this account is a type of account that’s used for provisions, and this account is a type of account that’s used for accruals. It gives you all of that information.
Based on all of that information, and based on a few other things that you can get from the general ledger itself, when you have like some flags to say this is a payment, or this isn’t a payment, or this is, you know, an automated posting, or this is just a clearing document, we don’t care about it, and all that stuff, we are able to actually say, based on some rules, that these things are specific things that we know what they are, right? We know that it is a supply invoice or supply invoice reversal. Here you can see you’ve got sample document, that just means that it’s not a real posting, as I didn’t filter on the entry status up here. But normally what we do is start off by filtering on entry status is normal.
That will help you to just ignore anything that is not even posted in general ledger. Because quite a lot of times we get a bit confused with SAP, because if you just get the data out of SAP, you’ve actually got a whole load of junk in there. And you’ve got all the draft posting, and you’ve got recurring entry and all this stuff.
So when we look at what we just filtered on, we see that at the top, we don’t have a very good description of what it is. The reason we don’t have a very good description for what it is, is because it is something that didn’t fall into any of our buckets. And that means it’s something a bit unusual.
That’s really interesting, because we don’t actually know how to classify it, right? So if you took this Qlik App, and you get to know all the rules, you understand them and stuff like that, you might start thinking, oh, but actually, this particular one is normal for us, it’s this type of thing. And then you could change it, you could add that rule. And then you would no longer get it coming up like this, you get it with your particular rule for your group.
But for the moment, this is something unusual. And I think it is quite unusual, because it’s just a debit cost and credit bank. And the other thing about it is, obviously, this is all dummy data from a sandbox. This is not real data. But if you see that there is actually only one user doing it, then it would also be maybe a bit suspicious, depending on the size of the entity. Here you can see again, you got your journal entry description. Here you can also change it like if you maybe want to see, oh, I don’t want to see the dot per journal entry description, I want to see the dot per accounting scheme. And so if you remember, on the debit side, we had two that I chose, because there were two types of cost accounts that are generic. And this is how we now get the split.
So actually, we can see that this dot is the most interesting one, because it’s got much more value going on. So the one about other general expenses is something more interesting. SAP has references, and the reference actually tells you that where it was posted.
So if the reference is BKPF, and it’s called an accounting document, so this title is actually coming from SAP. If it’s called an accounting document, after a while, you start doing these things, you get to know that actually an accounting document is something that is manual, it’s something that is posted directly into the finance module of SAP. It’s not coming from the purchasing module, it’s not coming from sales and distribution module, or it’s not coming from like HR module or somewhere else. It is a manual posting directly into the general ledger. And just to double check that it’s manual, we can come up here and we’ve got a little flag up here.
And we can see, is it manual? So there is also the classification behind the scene, like behind this page is the classification of the rule that will tell you what is a manual, like, how do you know if something is manual And like, being able to filter on all the manual journal entries is actually a really great starting point, because you might just filter on manual to start with, right? You might not want to get straight into the accounting schemes like I did, you might just filter on manual. And then you might look at this graph, and then you’d be like, where did the dots stand out for manual things? Like, where are the really high manual entries? And if you’ve got like one dot, it’s up here, and you know, all the other dots down the bottom, then you’d be like, well, that’s a really high manual journal entry, and it’s having an impact on my balance sheet on the financial statement.
So it’s obviously something that I should have a quick look at just to make sure that it’s not something funny. We are talking about corruption. So we’re talking about I’m going to get some money out of the company, like I’m doing with this one and get the cash out of Citibank and just put it to Sundry, Costa, P&L, there’s going to be no ageing, there’s going to be no third party involved, there’s no checking, there’s going to be no clearing document, all that stuff. Don’t care about all those controls. So I’m just going to do my manual journal entry Citibank cash out. So the bank statement will match my general ledger.
So everything about that is going to be fine, I’m not going to have any gaps with the general ledger and the bank statement when it comes to doing bank reconciliation, so no one’s going to notice. And then at the end of the year, because I’m putting it on the profit and loss, the profit and loss resets to zero. And then that’s it.
There’s no ageing involved, right? So it’s the easiest way to do it. But it might not be that you want to go straight into the account scheme. Maybe what you want to do is just see what is manual and what are the patterns of manual? Who’s posting manual? If you click on the user button, you’re going to see who’s posting the manual things and when are they posting them and like which ones have got the highest value.
Other things just up here, just before we move down a bit, is that you’ve got things called the credit account type. So you’ve got account types on debit and account types on credit. I’ll just show you that. So in the account type, you can see what kind of account it is. And this is a very good filter to have because in the account type filter, it’s very macro. You don’t get all of the noise from all the detail.
So in the account type, you can see what kind of account it is. And this is a very good filter to have because in the account type filter, it’s very macro. You don’t get all of the noise from all the detail.
You’ve only got a few of them. You’ve got assets. You’ve got D for debtors.You’ve got K for creditors. S for suppliers, M for materials, and then you’ve got S for everything else, right? So S will cover your bank and your profit and loss and a whole load of other stuff. So this is also a really useful filter if you just want to start, like maybe you just want to start and say, OK, I just want to look at everything to do with crediting a supplier or just want to look at everything to do with debiting a customer, just come over to the customer, to the debit side of account types, and then I would just filter on the debit.
And that would help me to see that he put debtor. So D for debtor. And then you’d be able to see everything about your customers.
OK, so that’s like really quick way for you to see what’s going on in terms of strange accounting schemes.
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