1. Correct Errors in Financial Transactions
Show Slide # 1: Prepare Error Correction Documents
References: DFAS-IN REG 37-1, DODFMR R, VOL 5 , FM 1-06
4 hours
Facilitator Material: Each primary facilitator should possess a lesson plan, slide deck, course handouts, and practical exercise, DFAS-IN REG 37-1, DODFMR R, VOL 5, and FM All required references and technical manuals will be provided by the School House
Learner Material: Learners should possess standard classroom supplies, course handouts, practical exercises, DFAS-IN REG 37-1, DODFMR R, VOL 5, and FM 1-06FM. All required references and technical manuals will be provided by the School House.
Facilitator Actions: Classroom Setup 5 minutes, Classroom Breakdown 2 minutes
Individual Critical Task: Taught
Motivator: We all know that errors are inevitable within the workplace, whether they be human or mechanical. It is essential that errors be expeditiously corrected in order for an installation's records to be accurate. Anyone detecting an error in accounting records is responsible for making the correction; this includes each one of you. Correction procedures are ultimately the responsibility of the Analysis and Reconciliation Branch.
Financial Management School

2. TERMINAL LEARNING OBJECTIVE
Action: Correct Errors in Financial Transactions
Conditions: FM Leaders in a classroom environment working as a member of a small group, using doctrinal and administrative publications, self-study exercises, personal experiences, practical exercises, handouts, and discussion.
Standard: With at least 80% accuracy (70% for international learners) you must:
Define adjustments and corrections by identifying the erroneous accounting data and determine the correct accounting data
Select the proper error correction procedure
Identify the error correction methods by making pen and ink changes
Prepare a SF 1081
Show slide #2 Terminal Learning Objective requirements
Action: Correct Errors in Financial Transactions
Conditions: FM Leaders in a classroom environment working as a member of a small group, using doctrinal and administrative publications, self-study exercises, personal experiences, practical exercises, handouts, and discussion.
Standard: With at least 80% accuracy (70% for international learners) you must:
Define adjustments and corrections by identifying the erroneous accounting data and determine the correct accounting data
Select the proper error correction procedure
Identify the error correction methods by making pen and ink changes
Prepare a SF 1081
Safety Requirement: In a training environment, leaders must perform a risk assessment in accordance with DA PAM , Risk Management. Leaders will complete a DD Form 2977 DELIBERATE RISK ASSESSMENT WORKSHEET during the planning and completion of each task and sub-task by assessing mission, enemy, terrain and weather, troops and support available-time available and civil considerations, (METT-TC). Local policies and procedures must be followed during times of increased heat category in order to avoid heat related injury. Consider the work/rest cycles and water replacement guidelines IAW TRADOC Regulation
Risk Assessment Level: Low
Environmental Consideration: Environmental protection is not just the law but the right thing to do. It is a continual process and starts with deliberate planning. Always be alert to ways to protect our environment during training and missions. In doing so, you will contribute to the sustainment of our training resources while protecting people and the environment from harmful effects. Refer to FM Environmental Considerations and GTA ENVIRONMENTAL-RELATED RISK ASSESSMENT.
Evaluation Requirements: There will be no exam with this lesson.
Instructional Lead-in: Upon completion of this period of instruction, you will differentiate between adjustments and corrections in order to rectify the validity of documents generated or received by your branch or division. It is essential that these documents reflect an accurate account of your customer's transactions to ensure that customers make informed financial decisions and, in turn, ensure mission completion. 2

3. ADJUSTMENT
Changes in the accounting records made in response to the receipt of more current information
Show slide #3 Adjustment
1. Learning Step / Activity 1. Define adjustments and corrections by identifying the erroneous accounting data and determine the correct accounting data.
Method of Instruction: DSL (large or small group discussion)
Facilitator to learner Ratio: 1:30
Time of Instruction: 20 minutes
Media: Slides, Printed Reference Materials
Facilitator's Note: Before facilitating this lesson, ask the learners which of the 21st Century Soldier Competency do they think pertain to this lesson? Facilitate a discussion on the answers given and at the end of the lesson revisit it and see if the learners still believe their choice are the same.
1. Character and accountability
2. Comprehensive fitness
3. Adaptability and initiative
4. Lifelong learner (includes digital literacy)
5. Teamwork and collaboration
6. Communication and engagement (oral, written, and negotiation)
7. Critical thinking and problem solving
8. Cultural and joint, interagency, intergovernmental, and multinational competence
9. Tactical and technical competence (full spectrum capable)
Facilitator’s Note: (Facilitator read and facilitate discussion)
1. Although errors in accounting transactions are detected and corrected throughout the accounting cycle, the procedures for correcting the errors depend on where in the accounting cycle the error is detected. Two terms must be properly understood and applied before any action is taken to correct an error. The terms are adjustment and correction.
2. Adjustments are changes in the accounting records made in response to the receipt of more current information. The original accounting entry is often an estimate based on the best information available at that time. An adjustment at a later date might be necessary. For example, when a travel order is received by the accounting division, the estimated dollar amount is the basis for recording the obligation, accrual expenditure/expense.
3. When the traveler submits a travel settlement voucher (disbursement), the estimated amount on the travel voucher and the paid amount on the settlement voucher are compared by the Budget Analysis Branch.
Facilitator's Note: An adjustment is the difference between the two, whether it is a debit or credit. Recording an obligation or accrual expenditure/expense adjustment eliminates this difference.

4. CORRECTION
Change in an accounting classification or dollar amount on a document when preparing, posting, or processing the document
Show slide #4 Correction
Facilitator’s Note: (Facilitator Read and facilitate discussion)
A correction is a change in an accounting classification or dollar amount needed on a document when an error is made in preparing, posting, or processing the document. When the document was originally prepared, processed, and recorded, it was believed that the transaction was accurate.
When an error in the accounting classification, dollar amount, processing, or recording is noted, the individual discovering the error is responsible for processing the correction document(s). The Analysis Branch is ultimately responsible for ensuring the error correction document(s) are completed and processed correctly.
Responsibility for Error Correction. When an error in the accounting classification or dollar amount is noted, the individual discovering the error is responsible for error correction. The Analysis Division is ultimately responsible for making sure that error correction documents are completed and processed correctly.

5. LSA #1 Check on Learning Show Slide #5: LSA #1 Check on Learning
Facilitator’s Note: Ask the following Questions; (Facilitate discussion on answers given)
 Q1. What are the two terms associated with making corrections to accounting documents?
A1. Adjustment and correction

6. LSA #1 Summary Show slide #6: LSA #1 Summary
Facilitator’s Note: In this lesson, we discussed How to define adjustments and corrections by identifying the erroneous accounting data and determine the correct accounting data

7. ERROR CORRECTION PROCESS
Research the discrepancy
Reverse incorrect data out of accounting records
Record correct data
Show slide #7 Error Correction Steps
2. Learning Step/Activity #2. Select the proper error correction procedure.
Method of Instruction: DSL (large or small group discussion)
Facilitator to learner Ratio: 1:30
Time of Instruction: 20 minutes
Media: Slides, Printed Reference Materials
Facilitator’s Note: (Facilitator read and facilitate discussion)
Error Correction Rules:
The following three rules are used to correct erroneous accounting transactions:
(1) Research the discrepancy either systemically or through the audit trail.
(2) Reverse the incorrect data out of the accounting records.
(3) Record the correct data.
Error Correction Methods:
(1) The Original Document with pen and ink changes.
(2) Optional Form OF 1017-G, Journal Voucher.
(3) Standard Form 1081, Voucher and Schedule of Withdrawals and Credits. Error correction methods are dependent on local accounting policy. If the two fiscal station numbers (FSNs) are in the same STANFINS database, a SF1081 may not be necessary.

8. LSA #2 Check on Learning Show Slide # 8: LSA #2 Check on Learning
Facilitator’s Note: Ask the following Questions; (Facilitate discussion on answers given)
 Q1. If there is an increase in the amount spent on a TDY, what action will be taken?
 A1. An adjustment would be made with a simultaneous obligation and accrued expenditure input into the system.
Q2. What is the last thing you do in the error correction process?
A2. Record the correct data.

9. LSA #2 Summary . Show slide #9: LSA #2 Summary
Facilitator’s Note: In this lesson, we discussed Select the proper error correction procedure.

10. PEN AND INK CHANGES
Used to correct documents before processing into accounting records before the input has cleared the Daily Preliminary Balance Listing (DPBL)
Prepare a new document with new signatures or
Correct all existing copies by lining out incorrect information and inserting correct data with initials and date corrected
Show slide #10: Pen and Ink Changes.
3. Learning Step / Activity 3. Identify the error correction methods by making pen and ink changes.
Method of Instruction: DSL (large or small group discussion)
Facilitator to learner Ratio: 1:30
Time of Instruction: 1 hour
Media: Slides, Printed Reference Materials
 Facilitator’s Note: (Facilitator read and facilitate discussion)
Pen and ink changes are used to correct documents before processing transactions into the accounting records. "Before entry into accounting records" means the input has not cleared the Daily Preliminary Balance Listing (DPBL). The DPBL is an error listing that have not hit the accounting records. The DPBL errors must be corrected before admission into STANFINS.
 Preparation:
(1) Prepare a new document to include new signatures or,
(2) Correct all existing copies by lining out incorrect information and inserting correct data, initial, and date on the correction entry.

11. ERROR CORRECTION DOCUMENTS
Pen and ink change(s) to original document
SF 1017G, Journal Voucher
SF 1081, Voucher and Schedule of Withdrawals and Credits, to effect correction of errors
Show slide #11: Error Correction Method, OF 1017-G, Journal Voucher, and Summary Sheet.
Facilitator’s Note: (Facilitator read and facilitate discussion)
OF 1017-G Journal Voucher:
Journal Voucher are used to make internal adjustment (corrections) after transactions are recorded in the General Ledger, but prior to release of month end financial reports.
SF 1081, VOUCHER AND SCHEDULE OF WITHDRAWALS AND CREDITS.
Use an SF 1081 to resolve:
(1) Treasury errors.
(2) To correct Appropriation accounts for disbursements or collections, after the monthly financial reports have been released.
(3) When receiving transactions with identified Treasury errors or when reconciling errors on the month-end Treasury reports.
Facilitator's Note: This ensures that all cross-disbursement transactions are accurately captured and correctly reported back to the appropriate Accounting Center.

12. JOURNAL VOUCHER OF 1017-G
Used in lieu of General Journal Voucher to record certain miscellaneous information at month/year end
Make internal adjustment (corrections):
After transactions recorded in general ledger
Prior to release of month-end financial reports
Show slide #12: JOURNAL VOUCHER OF 1017-G
Facilitator’s Note: (Facilitator read and facilitate discussion)
Used in lieu of General Journal Voucher to record certain miscellaneous information at month/year end
Make internal adjustment (corrections):
After transactions recorded in general ledger
Prior to release of month-end financial reports

13. OPTIONAL FORM 1017-G, JOURNAL VOUCHER
Show slide #13: Optional Form 1017-g, Journal Voucher
Facilitator’s Note: Go over each area on the journal voucher with learners. Facilitate discussion on each area. 13

14. LSA #3 Check on Learning Show Slide # 14: LSA #3 Check on Learning
Facilitator’s Note: Ask the following Questions; (Facilitate discussion on answers given)
Q1. When are pen and ink changes used?
A1. To correct documents before processing into the accounting records.
Q2. What does "before processing transactions into the accounting records" mean?
A2. The input has not cleared the DPBL.

15. LSA #3 Summary Show slide #15: LSA #3 Summary
Facilitator’s Note: In this lesson, we discussed Identify the error correction methods by making pen and ink changes, and the OF 1017-G Journal Voucher.

16. OF WITHDRAWALS AND CREDITS
VOUCHER AND SCHEDULE
OF WITHDRAWALS AND CREDITS
SF 1081
Used for appropriation accounts on disbursements or collections
After release of monthly financial reports
Show slide #16: Vouchers and Schedules of Withdrawals and Credits
4. Learning Step / Activity 4. Prepare a SF 1081.
Method of Instruction: DSL (large or small group discussion)
Facilitator to learner Ratio: 1:30
Time of Instruction: 1 hour
Media: Slides, Printed Reference Materials
Facilitator’s Note: (Facilitator Read and facilitate discussion)
Prepare a SF 1081, if the erroneous document has been entered into the accounting system and/or appears on financial reports.
Used for appropriation accounts on disbursements or collections
After release of monthly financial reports

17. Section 1- Enter the date.
STANDARD FORM 1081, VOUCHERS AND SCHEDULES OF WITHDRAWALS AND CREDITS
Show slide #17: Vouchers and Schedules of Withdrawals and Credits Cont.
Facilitator’s Note: (Facilitator read and facilitate discussion using the slide)
Section 1- Enter the date.
Enter the current date if the error is discovered after entry into the accounting records.
Enter the last day of the accounting period the error occurred in if the error is discovered after release of the monthly financial reports.
Section 2 - Enter the Accounting Office's address that is responsible for the customer (who the money is being moved to) and the Accounting office's address that is responsible for the billing agency. The address will be the same if the Accounting Office is responsible for both the billing and customer.
Section 3 - Enter the accounting classifications and the corresponding amounts for the customer.
Add the amounts and put the result in the total block.
Enter the accounting classifications and the corresponding amounts for the billing agency.
The customer total must agree with the billing agency total.
Section 4 - Enter an explanation of why the error occurred and what is being done to correct the error. Add any other comments that may help in an audit trail.
The accounting Tech who prepares the SF 1081 puts their name and signature in the space provided.
The Team Leader, NCOIC, or Chief who verifies the SF 1081 and the supporting documentation puts their name, signature, and phone number in the space provided.
Section 5 - Enter the date, phone number, and signature block of the Finance and Accounting Officer (FAO). The FAO signs the SF 1081 after reviewing the documents. 17

18. LSA #4 Check on Learning Show Slide # 18: LSA #4 Check on Learning
Facilitator’s Note: There is no check on learning for this LSA.

19. LSA #4 Summary Show slide #19: LSA #4 Summary
Facilitator’s Note: In this lesson, we discussed how to prepare a SF 1081.

20. TLO Check on Learning SHOW SLIDE #20: TLO Check on Learning
Facilitator’s Note: Facilitator, have each group as a group write down one question from this lesson, give about five minutes. Once all groups have their question written, pass it to another group to answer it. Facilitate a discussion on each question.

21. TLO Summary SHOW SLIDE #21: TLO Summary
Facilitator’s Note: Facilitator at this time, have one Learner from each group to explain the most important take away to them from this lesson. Facilitate a discussion on each answer.

22. Practical Exercise Show slide #22 Practical Exercise
Facilitator's Note: Facilitator’s Note: Have learners log into Black board to do the Practical Exercise.