Audit trails are not just for auditors. According to Investorwords, an audit trail is a step-by-step record by which financial data can be traced to its source. The ability to trace financial data to its source is vital to correcting transaction classification in accounting.
You can use the audit trail to trace financial data to its source in Blackbaud's financial software. For example, the balance of Prepaid Expenses changes for the first time in months.
First, print a General Ledger Report in detail for this account [version 7] . From this report, it is obvious that the transaction originated in Accounts Payable.
You can also use the drill-down functionality to find this information, instead of printing the General Ledger Report.
To determine what the reference "SKF, Inc.-7742" means, refer to How the posting references are defined [version 7] . In this example SKF, Inc., is the Vendor name and 7742 is the Invoice Number for this transaction.
Using the original invoice date for the correction and enter the correct distribution on the New Distribution tab.
Post from Accounts Payable [version 7] and print the Balance Sheet again. The Prepaid Expense account now has the correct balance.
After making the invoice corrections, the fixed asset account, 01-1850-00, is off by the same amount. The account Activity tab shows a $10,600.00 debit for the month of November.
Double-click the amount on her Activity tab to drill-down to the transaction detail and verify the amount is the invoice adjustment for SKF, Inc., invoice number 7742.
To determine the account's contents, print and Asset Listing. From the review of this report, it can be determined the computers from SKF have not been recorded in Fixed Assets.
Use the Asset Wizard [version 7] to record the assets. Since the amount for the asset already appears in General Ledger, select a Do not post status for the asset's acquistion transaction. (Asset acquisition transactions are recorded via journal entry in Accounting for Nonprofits).
After recording the asset, reprint the Asset Listing. The listing and total of assets now agrees with her General Ledger account balance.
In addition to a correct balance, an audit trail is created for the corrected transaction.