GL

Presentation on Accrued Salaries and Vacations (Phoenix, Rancho and TLH):

03/04/2009 Accrued Salaries and Vacations Presentation on Accrued Salaries and Vacations (Phoenix, Rancho and TLH) By Prakash

Chapters Covered:

03/04/2009 Accrued Salaries and Vacations Chapters Covered Introduction to GL Meanings Necessary Reports for reconciliation Due date Objects of Reconciliation Steps to do Reconciliation Uses of Reconciliation

Introduction to GL:

03/04/2009 Accrued Salaries and Vacations Introduction to GL General Ledger: It is a monthly process. It is a official record of all financial and current month transactions. A book which contains all company's financial transactions for the month, through offsetting debit and credit accounts . Reconciliation: It means the comparing and analyzing two documents and expecting a match between these two documents.

Contd… Introduction to GL:

03/04/2009 Accrued Salaries and Vacations Contd… Introduction to GL No. of Projects: Rancho: Accrued Salaries – 4 Accrued Vacations – 4 Accrued Expenses – 4 TLH: Accrued Salaries – 40 Accrued Vacations – 40 Claims – 10 PHX: Accrued Salaries – 73 Accrued Vacations – 73 Aging: AR Aging recon to Trial Balance – 2

Meanings::

03/04/2009 Accrued Salaries and Vacations Meanings: Accrued Vacations: The accrued vacations represent the vacations earned, but not yet taken by the employees. A financial vacation accrual allows us to build up funds to pay staff while they are on vacation, thus recognizing this cost as it is earned. Accrued Salaries: The accrued salaries represent the amounts owed by the company for services performed by its employees in the current period which are to be paid in the normal payroll cycle in a subsequent period. Severance: Dismissal pay

Necessary Reports::

03/04/2009 Accrued Salaries and Vacations Necessary Reports: Account Analysis Report – In this report we will get the whole month activities that have taken place. Here Credit shows this month outstanding amount and Debit shows the paid amount of last month outstanding. Trial Balance – In this we will get the opening balance, month activities and ending balance.

Due date:

03/04/2009 Accrued Salaries and Vacations Due date Pulling the data cannot be started until month end closed usually on the 6 th business day of the month. However, an email notification will be sent to by the FSC when we can begin the reconciliation. The final reconciliation file is due on the 20 th day of each month for TLH and PHX, but for Rancho it is on 15 th day of each month.

Notification Email:

03/04/2009 Accrued Salaries and Vacations Notification Email Rancho: Rorie Matsumura rmatsumura@firstam.com Lucinda Chapman lchapman@firstam.com Steve Brodeur sbrodeur@firstam.com PHX: Michael Fry mfry@firstam.com TLH: Doris Geohagan dgeohagan@firsam.com Randy Bay rbaye@firstam.com Ken Joyner kjoyner@firstam.com

Object of Reconciliation:

03/04/2009 Accrued Salaries and Vacations Object of Reconciliation The main object of Reconciliation tab is to show the outstanding amount and Variance items.

Steps to do Reconciliation::

Steps to do Reconciliation: First we have to pull the data from Oracle to get the Account Analysis and TB report. Once all the necessary reports have been gathered, copy the previous month’s reconciliation into a new worksheet. Rename it to the current month’s reconciliation. We have to make two columns in the Account Analysis one is Amount column and another one is “X” column.

Contd… Steps to do Reconciliation::

03/04/2009 Accrued Salaries and Vacations Contd… Steps to do Reconciliation: Enter the control balance which is coming from the account analysis report and GL Balance from the Trial Balance. The control balance should consist of the current month’s salary accrual as well as any new severance pay, if there’s any (Except in TLH). Reconcile the two and note any variances on the reconciliation sheet.

Slide 12:

03/04/2009 Accrued Salaries and Vacations Uses of reconciliation It is useful for each FSC to address the variances. If you see the Account analysis we will come to know the items which we have considered. We will come to know how much is the outstanding liability for the month.

Slide 13:

03/04/2009 Accrued Salaries and Vacations QUESTIONS

Slide 14:

03/04/2009 Accrued Salaries and Vacations Thank You