Summary

Learn about the various steps taken to identify and format GDPdU general ledger (GL) data so that it is ready to be ingested into MindBridge.

Why does GDPdU data need to be formatted?

GDPdU (Grundsätze zum Datenzugriff und zur Prüfbarkeit digitaler Unterlagen) data is a specific file format required by German tax law. The GDPdU format is often not compatible with MindBridge's ingestion workflow, hence it requires formatting. For example, there are often subledger entries included in the general ledger than would result in unbalanced accounts and not provide an accurate analysis. 

This guide will help you understand the steps required to transform your client's GDPdU data.

Step 1 – Identify the GDPdU Export and Understanding its Contents

The first step to formatting data is to identify and validate the export provided by the client. GDPdU files are organised as a zip file containing the following:

• A DTD file which is the document type definition file
• An index.xml file contains table and field names in English based on the names of tables and fields
• A number of data files, usually in csv or txt format, including the general ledger. By default, these data files do not have any headers. 

Note: At minimum, 3 files (a DTD, index.xml and a general ledger file) are required to create a general ledger file for MindBridge upload.

Step 2 – Unpack and Add Headers to the GDPdU Files

Next, upload the GDPdU zip file into the MindBridge File Manager.

Once uploaded, utilize the Format GDPdU option under Actions to automatically add header data in the index file to the data files. 

Once the GDPdU data has been unpacked, identify the general ledger file. Generally, the largest file size is often the general ledger. However, to ensure the right file is formatted, ask your client. 

Take a look at our article on Troubleshooting Issues with GDPdU Exports to resolve issues that can occur when unpacking a GDPdU file.

Step 3 – Set Opening Balance for Revenue and Expenses accounts to Zero

Identify revenue and expense accounts and set their opening balances to zero.

When exporting the trial balance from German accounting software, it’s common for the opening balance of revenue and expenses accounts to have a prior year closing balance. MindBridge does not automatically set opening balances of Revenue and Expense accounts to zero.

Check out our article on Zeroing the Opening Balance for Revenue and Expenses Accounts for a step by step guide.

Step 4 – Performing a Completeness Check

Performing a manual or completeness check in MindBridge to verify whether there are any completeness or accuracy issues with the data. 

A completeness check involves performing the following calculation for each account:

                Opening Balance + General Ledger Net Activity = Closing Balance

If the calculated closing balance equals the closing balance in the client's file, then the data is complete and accuracy. 

If the calculated closing balance does not equal the closing balance in the client's file, then investigate the out of balance accounts.

Take a look at our article on Performing a Completeness Check for a detailed guide.

Step 5 – If the Completeness Check Failed, Format the Files

Accounts often fail the completeness checks due to either one of, or a combination of, the following:

• Incomplete data in the expected data range in the GL file
  • Check to ensure no days or months of transactions are missing from your data. If you are analyzing a 12 month period, it is expected that there are 12 months of transactions available in your data.
• Opening balance entries are included in the GL file
  • Since opening balances are included in a separate file, any opening balance entries in the general ledger need to be removed or else they will be counted twice.
• D&K, statistical, or subledger account entries in the GL file
  • D&K, statistical, or subledger account entries either need to be removed or rolled up into specific accounts depending on the client's ERP set up. 
• Opening/closing balance files are missing prior year adjustments
  • At times, the trial balance file is used as the opening or closing balance file. If adjustments were made to account balances and not captured in the trial balance file, accounts will be out of balance. 
• Opening/closing balance files with flip accounts
  
  • Within the file, there may be accounts that show up twice in the file with different positions (debit or credit). For example, "other income/expense" can be "other income/expense" with a debit balance and "other income/expense" with a credit balance. As MindBridge does not accept duplicated accounts, an account balance must be selected. Often, the position of the closing balance amount is chosen as the closing balance amount.

Once you have identified the root cause of the failed completeness check, you can format the accounts as required. Below are links to detailed guides on how to resolve the issues identified during the completeness check:

• Identifying and Removing D&K Account Entries in the General Ledger
• Identifying and Removing Opening Balance Entries in the General Ledger
• Identifying and Resolving Flip Accounts in the Trial Balance

Step 6 – Reconciling the Changes

Once you have made changes to your files, perform another completeness check to ensure the issues have been fixed. This is in iterative process to balance the accounts. 

Anything else on your mind? Chat with us or submit a request for further assistance.

Related articles

• How do GDPdU Files Work?
• Zero Opening Balance Entries for Revenue and Expenses Accounts
• Running a Pre-Analysis Completeness Check
• Identifying D & K / Sub Ledger Accounts
• Identifying and Removing Opening Balance Entries in the General Ledger
• Identifying and Resolving Flip Accounts in the Trial Balance