Kuali Financial Systems General Ledger Overview

1. Kuali Financial SystemsGeneral Ledger Overview(May 2008)Joan Hagen, Indiana UniversityVincent Schimizzi, Michigan State University

2. Agenda Topics • Overview of the accounting cycle from e-doc creation to decision support • Components of the accounting cycle (ledger attributes, back office functionality, and year-end processes) • Effect of system reference table updates & chart of accounts e-docs on ledger data • On-line GL balance inquiry screens • Year End Processing

3. Kuali Accounting Cycle Diagram

4. Accounting Cycle Continued

5. General Ledger Detail FIELD NAME FORMAT BUSINESS NAME • UNIV_FISCAL_YR VARCHAR2(4) FISCAL YEAR • FIN_COA_CD VARCHAR2(2) CHART • ACCOUNT_NBR VARCHAR2(7) ACCOUNT NUMBER • SUB_ACCT_NBR VARCHAR2(5) SUB ACCOUNT • FIN_OBJECT_CD VARCHAR2(4) OBJECT CODE • FIN_SUB_OBJ_CD VARCHAR2(3) SUB OBJECT • FIN_BALANCE_TYP_CD VARCHAR2(2) BALANCE TYPE • FIN_OBJ_TYP_CD VARCHAR2(2) OBJECT TYPE • UNIV_FISCAL_PRD_CD VARCHAR2(2) FISCAL PERIOD • FDOC_TYP_CD VARCHAR2(4) DOCUMENT TYPE • FS_ORIGIN_CD VARCHAR2(2) ORIGIN CODE • FDOC_NBR VARCHAR2(14) DOCUMENT NUMBER • TRN_ENTR_SEQ_NBR NUMBER(5) SEQUENCE NUMBER • TRN_LDGR_ENTR_DESC VARCHAR2(40) TRANSACTION DESCRIPTION

6. General Ledger Detail Continued FIELD NAME FORMAT BUSINESS NAME • TRN_LDGR_ENTR_AMT NUMBER(19,2) TRANSACTION AMOUNT • TRN_DEBIT_CRDT_CD VARCHAR2(1) DEBIT CREDIT CODE • TRANSACTION_DT DATE TRANSACTION DATE • ORG_DOC_NBR VARCHAR2(10) ORG DOCUMENT NUMBER • PROJECT_CD VARCHAR2(10) PROJECT CODE • ORG_REFERENCE_ID VARCHAR2(8) ORG REFERENCE ID • FDOC_REF_TYP_CD VARCHAR2(4) REFERENCE DOCUMENT TYPE • FS_REF_ORIGIN_CD VARCHAR2(2) REFERENCE ORIGIN CODE • FDOC_REF_NBR VARCHAR2(14) REFERENCE DOCUMENT NUMBER • FDOC_REVERSAL_DT DATE REVERSAL DATE • TRN_ENCUM_UPDT_CD VARCHAR2(1) ENCUMBRANCE UPDATE CODE • TRN_POST_DT DATE POST DATE

7. General Ledger Balance FIELD NAME FORMAT BUSINESS NAME • UNIV_FISCAL_YR NUMBER(4) FISCAL YEAR • FIN_COA_CD VARCHAR2(2) CHART • ACCOUNT_NBR VARCHAR2(7) ACCOUNT NUMBER • SUB_ACCT_NBR VARCHAR2(5) SUB ACCOUNT • FIN_OBJECT_CD VARCHAR2(4) OBJECT CODE • FIN_SUB_OBJ_CD VARCHAR2(3) SUB OBJECT • FIN_BALANCE_TYP_CD VARCHAR2(2) BALANCE TYPE • FIN_OBJ_TYP_CD VARCHAR2(2) OBJECT TYPE • ACLN_ANNL_BAL_AMT NUMBER(19,2) ANNUAL BALANCE • FIN_BEG_BAL_LN_AMT NUMBER(19,2) FINANCIAL BEGINNING BALANCE • CONTR_GR_BB_AC_AMT NUMBER(19,2) C&G BEGINNING BALANCE

8. General Ledger Balance Continued FIELD NAME FORMAT BUSINESS NAME • MO1_ACCT_LN_AMT NUMBER(19,2) MONTH 1 AMOUNT (JULY) • MO2_ACCT_LN_AMT NUMBER(19,2) MONTH 2 AMOUNT (AUGUST) • MO3_ACCT_LN_AMT NUMBER(19,2) MONTH 3 AMOUNT (SEPTEMBER) • MO4_ACCT_LN_AMT NUMBER(19,2) MONTH 4 AMOUNT (OCTOBER) • MO5_ACCT_LN_AMT NUMBER(19,2) MONTH 5 AMOUNT (NOVEMBER) • MO6_ACCT_LN_AMT NUMBER(19,2) MONTH 6 AMOUNT (DECEMBER) • MO7_ACCT_LN_AMT NUMBER(19,2) MONTH 7 AMOUNT (JANUARY) • MO8_ACCT_LN_AMT NUMBER(19,2) MONTH 8 AMOUNT (FEBRUARY) • MO9_ACCT_LN_AMT NUMBER(19,2) MONTH 9 AMOUNT (MARCH) • MO10_ACCT_LN_AMT NUMBER(19,2) MONTH 10 AMOUNT (APRIL) • MO11_ACCT_LN_AMT NUMBER(19,2) MONTH 11 AMOUNT (MAY) • MO12_ACCT_LN_AMT NUMBER(19,2) MONTH 12 AMOUNT (JUNE) • MO13_ACCT_LN_AMT NUMBER(19,2) MONTH 13 AMOUNT (CLOSING)

9. Accounting Cycle Components • Sufficient Funds Checking - In general, calculates an available amount and prevents document approval in the event of insufficient funds (budget - actual expenses - outstanding encumbrances - pending entries). An optional feature by account with five variations - object code, level, consolidation, by account, and cash checking. • Pre-Scrubber and Scrubber – Perform the following major functions: Validation of Data • Application of select missing values • Reference to chart of accounts for validation (non-free form fields) • Continuation account logic Generation of offsets • Document balancing • Capitalization of assets and liabilities • Plant indebtedness • Cost share transfers • Cost share encumbrances Error handling • Most common source for error files for input into the GLCP e-doc (in conjunction with De-Merge process)

10. Accounting Cycle Components Continued • De-Merge Process – Pulls all of the transactions for a document that the scrubber found to have errors and backs out any scrubber generated offsets. This is the main source of transactions for the General Ledger Correction Process (GLCP) e-doc. • GL Poster – Performs the following major functions: Three instances of the poster • Primary poster for the scrubbed transactions • Automated reversal process • Indirect Cost Recovery (ICR) Limited validation of data (amount, account number, object type, balance type, fiscal year, chart, debit/credit indicator, & reversal date) Updates and inserts to GL tables • GL Detail (GLEN) • GL Balance (GLBL) • Account Balance (ACBL) • Sufficient Funds (SFBL) • Open Encumbrances (GLEC) • GL Reversals (GLRV) Initial determination of expenses eligible for ICR • GL Expense Transactions (GLEX) temporary table

11. Accounting Cycle Components Continued • Automated Reversal Process - Systematically reverses transactions that were created with a reversal date. A copy of the original transaction remains in the GL Reversal (GLRV) table until the reversal date is reached, at which time a reversing entry is created and posted. The original entry is then removed from the GLRV table. • Indirect Cost Recovery (ICR) – Calculates ICR based on the expenses found in the GL Expense Transactions (GLEX) table. Generally, ICR is charged to the account incurring the original charge and revenue is recorded in an associated income stream account, usually a general fund Responsibility Center (RC) account (table driven). The ICR process references attributes of account and supporting reference tables to derive an amount. From account - financial series ID, ICR rate, ICR types, custom exclusions by object code, and revenue chart and account From reference tables – ICR automated entry, ICR type, and account exclusions

12. Functionality and Chart Set-Up • Attributes of Account Numbers Sufficient funds checking on/off indicator and type of checking (object code, level, consolidation, cash checking, account) Expiration date, closed indicator, and continuation accounting string for continuation account processing Indirect cost rates, financial series ID’s, exclusions, and revenue accounts for Indirect Cost Recovery (ICR) calculations • Attributes of Sub-Account Numbers Identifies cost share sub accounts and the source accounting string for cost share transfers and cost share encumbrance processing • Attributes of Organizations Identify the plant fund account numbers for capitalization and plant indebtedness • Offset Definition Reference Table Determines the appropriate offset in the event a balancing transaction is needed • Many other examples for other GL fields and reference tables…

13. GL Correction Process (GLCP)

14. Additonal Functions - Turn On/Off • Flexible Offsets (Delivered Functionality) – Allows posting of generated offsets (cash, accounts payable, salaries payable, etc…) to a specified offset accounting string. Each implementing institution can determine if offsets should post to the same account as the original transaction or to another defined accounting string. An offset accounting string can be established by document type within an account. • Bank Specific Claim on Cash (Release 3.0) – At the document level, allows the association of receipts and disbursements with a specific bank account. When activated users can specify a specific bank on appropriate e-docs (DV, ND, CR, PREQ, etc…). When specified an additional set of cash transactions will be generated which reclassify the original cash entry to a bank specific cash entry, likely in an institutional level account. The accounting string for the additional bank specific entries is maintained via bank reference tables. • Indirect Cost Recovery (ICR) Encumbrances (Post Release 3.0) – An extension of the actual ICR calculation for encumbrances. This is an optional feature, that when activated will calculate ICR encumbrances based on the outstanding encumbrance balances for an account. The intent is to provide a more complete view of an account’s position

15. On-Line Balance Inquiries Common Inquiry Features: • Drill Down Capability – Users can drill down from balances to detail transactions and from detail transactions to e-docs. • Include/Exclude Pending Entries – Inquiry screens have the ability to include all pending ledger entries, approved pending ledger entries, or exclude pending entries from the results. • Consolidation/Detail Option – Allows the users to accumulate results by Sub-Account, Sub-Object Code, and Object Type. • Export Functions – The results of the balance inquiry screens may be downloaded in CSV, Excel, or HTML formats. • Sort-able Results – The output may be sorted in ascending or descending order by clicking on the appropriate columns.

16. On-Line Balance Inquiries – (Cont.) Balance Inquiry Screens: • Available Balances - Summary totals of Budget, Actual, Encumbrance, and Variance amounts by Fiscal Year, Chart, Account Number, Sub-Account Number, Object Code, and Sub-Object Code. • Balances by Consolidation - Summary totals of Budget, Actual, Encumbrance, and Variance amounts by Fiscal Year, Chart, Account Number, Sub-Account Number, and Consolidation. Users have the ability to drill down to Level and then to Object Code. • Cash Balances - Provides Beginning, Annual, and Ending Cash Balances by Fiscal Year, Chart, Account Number, and Sub-Account Number. • General Ledger Balances - Summary totals of General Ledger balances by Fiscal Year, Chart, Account Number, Sub-Account Number, Object Code, and Sub-Object Code, Balance Type, and Object Type. • General Ledger Entry- Listing of transactions posted to the General Ledger. • Pending General Ledger Entry - Listing of Pending Ledger Entries for the General Ledger. When a financial transaction E-Doc is initiated, Pending Ledger Entries are created. These entries remain in the Pending Ledger Entry table until they are posted to the General Ledger. • Open Encumbrances - Listing of the open encumbrances and displays open amount, closed amount and amount outstanding .

17. Year-End Processing • Cancellation of select unapproved E-docs after June 30 accounting cycle • Activation of year-end documents for posting to fiscal periods 12 & 13 • Year-end documents post to the prior fiscal year • Through first closing they post to period 12 • After first closing through final closing they post to period 13 • Snapshots of Account and Organization tables for year-end reporting • Generation of Business Manager Reports – As determined by institution’s closing calendar • Generation of Monthly Standard Reports for First and Final Closing

18. Year-End Processing Continued Four primary year-end processes: • Organization Reversions and Carry Forwards – Driven by the GL Balance (GLBL) table and Organization Reversion reference table. Computes budget and cash reversion and carry forward amounts based on a set of defined business rules. • Encumbrance Forwards – Sets up outstanding encumbrances for the new fiscal year. • Close Out of Nominal Activity – Closes all nominal activity (Income and Expenses) to Fund Balance. • Beginning Balance Forwards – Carries forward balances for Assets, Liabilities, and Fund Balance (as Financial Beginning Balances).

19. Questions?