KB-355 — Accounting Audit Procedures¶

Version: 1.0
Status: Approved
Author: BLACK ERP Engineering
Category: Technical Accounting Certification

Purpose¶

This document defines the standard accounting audit methodology used during BLACK ERP implementations.

Its objective is to provide a repeatable procedure that allows consultants, auditors and support engineers to validate any accounting transaction from its originating business document to its final representation in financial reports.

The procedures described in this document complement the Functional Certification (KB-300) and the Technical Accounting Certification (KB-350) series.

Objective¶

The audit process seeks to answer five fundamental questions:

Did the business document generate accounting?
Was the accounting entry generated correctly?
Was it persisted correctly in FACT_ACCT?
Is it reflected correctly in Accounting Information?
Does it appear correctly in financial reports?

Only when all five questions are answered positively can the transaction be considered technically certified.

Accounting Audit Workflow¶

Business Document

        │

        ▼

Accounting Window

        │

        ▼

Internal Record ID

        │

        ▼

FACT_ACCT

        │

        ▼

General Ledger

        │

        ▼

Trial Balance

        │

        ▼

Financial Statements

Standard Audit Procedure¶

Every accounting audit performed in BLACK ERP follows the same sequence.

Step 1 — Identify the Business Document¶

Locate the originating business document.

Examples:

Purchase Invoice
Sales Invoice
Material Receipt
Customer Shipment
Payment
Allocation
Journal Entry

Record:

Document Number
Date
Organization
Business Partner
Project

Step 2 — Review Accounting Information¶

Open:

Accounting Information

Verify:

Debit
Credit
Accounts
Accounting Date

At this point the objective is only to confirm that accounting exists.

Step 3 — Retrieve the Internal Record ID¶

Identify the internal primary key.

Example:

SELECT
    c_invoice_id
FROM adempiere.c_invoice
WHERE documentno='1000002';

Never use DocumentNo inside FACT_ACCT.

FACT_ACCT always stores Record_ID.

Step 4 — Query FACT_ACCT¶

Retrieve accounting directly from PostgreSQL.

Validate:

Debit
Credit
Account
Accounting Date

Step 5 — Validate Accounting Dimensions¶

Every accounting line should preserve its business context.

Validate when applicable:

Organization
Business Partner
Product
Project
Accounting Schema

Step 6 — Verify Accounting Logic¶

Confirm that the generated accounting follows the expected business rules.

Examples:

Purchase Invoice

Receipts Pending Invoice

↓

Accounts Payable

Payment

↓

Selected Payments

Allocation

↓

Accounts Payable

↓

VAT Reclassification

Step 7 — Validate General Ledger¶

Confirm that the accounting entry appears correctly in:

General Ledger

Amounts must match FACT_ACCT.

Step 8 — Validate Trial Balance¶

Confirm that account balances were updated correctly.

Step 9 — Validate Financial Statements¶

If applicable, verify:

Balance Sheet
Income Statement
Cash Flow

The accounting impact should be reflected consistently.

Purchase Audit Example¶

Document

Vendor Invoice

↓

Accounting Information

↓

FACT_ACCT

↓

General Ledger

↓

Trial Balance

↓

Balance Sheet

Expected Result

Accounts Payable increased.
VAT Pending Payment created.
Inventory correctly recognized.

Sales Audit Example¶

Document

Customer Invoice

↓

Accounting Information

↓

FACT_ACCT

↓

General Ledger

↓

Income Statement

Expected Result

Revenue recognized.
Accounts Receivable created.
VAT Not Collected recorded.

Payment Allocation Audit¶

Purchases

Expected Validation

Invoice

↓

119.001

↓

Allocation

↓

118.001

Sales

Expected Validation

Invoice

↓

209.001

↓

Allocation

↓

208.001

SQL Validation¶

Every audit should include SQL validation.

Minimum verification:

✓ Source Table

✓ Record_ID

✓ Debit

✓ Credit

✓ Account

✓ Project

✓ Product

✓ Business Partner

Audit Checklist¶

Validation	Status
Business Document	□
Accounting Window	□
Internal Record ID	□
FACT_ACCT	□
Debit/Credit	□
Accounting Dimensions	□
General Ledger	□
Trial Balance	□
Financial Statements	□
Conclusion	□

Common Audit Findings¶

Typical accounting issues include:

Missing accounting entries.
Incorrect document status.
Incorrect accounting schema.
Missing accounting dimensions.
Incorrect account configuration.
Missing posting.
Incorrect allocation.

Each finding should identify:

Root Cause
Technical Evidence
Corrective Action

Best Practices¶

BLACK ERP recommends:

Never audit using only ERP windows.
Always include SQL validation.
Validate both functional and technical evidence.
Preserve screenshots of accounting windows.
Store SQL evidence with the certification documents.
Compare FACT_ACCT against General Ledger before closing the audit.

Relationship with Other Knowledge Base Documents¶

KB	Description
KB-212	Accounting Engine Architecture
KB-350	Technical Accounting Certification Framework
KB-351	FACT_ACCT Anatomy
KB-352	Accounting Traceability
KB-353	SQL Validation Guide
KB-354	Cash Basis VAT Technical Validation
KB-301	Sales Functional Certification
KB-302	Purchase Functional Certification

Conclusion¶

The procedures described in this document provide a standardized methodology for auditing accounting transactions generated by BLACK ERP.

By combining functional validation, SQL verification and financial report reconciliation, auditors can obtain complete traceability from the originating business document to the final financial statements.

This methodology ensures that every certified accounting process is reproducible, technically verifiable and fully auditable.