journal entry and budget transfers overview

1

Journal Entry and Budget Transfers Overview

2

Agenda

Overview Key Financial Management Principles Working with Journal Entries Processing Budget Transfers Getting Help

3

“Transactions” in PeopleSoft

PeopleSoft Transactions

Budget-Related Actuals-Related

“Budget Journal” One-sided entries used to create budgets,

either at the beginning of the year or as gifts, projects arrive throughout the

year

“Budget Transfer” Two-sided entries

used to move budget dollars from one location to another.

Similar to FRS BCOs

“Actuals Journal” or sometimes just “Journal”

Two-sided entries used to move actual expense

(or revenue) dollars from one location to another.

Similar to FRS journals.

Transactions that were traditionally thought of as “Journal Entries” may be grouped into two broad categories

4

Key Financial Management Principles

Budget transfers move budget dollars between chart strings Budget transfers may not move budget dollars across

funds

Actuals journals move actual expense (or revenue) between chart strings To the extent possible, correction of actuals entries should

take place in the “source” system For audit purposes, trace to documentation is preferred

method

5

Working with Journal Entries

6

Budget Transfers

Process Flows Setup Steps Terminology Walk-through Examples Handling Common Errors

7

Budget Transfers

Process Flows

8

Four Types of Budget Transfers

Revisions Cost-Sharing Internal Grants / Incentives Base Revisions

9

Budget Transfers - Revisions

Current year budget transfers within a unit or between units

Can be of any dollar amount Includes reallocation of re-appropriation

dollars Will be the type of transaction used to spread

Bullseye-created budgets among more chart field strings

Note: Information regarding new chart string combinations may need to be shared with units that generate internal charges.

10

Budget Transfer Journal Data EntryUser enters/updates the budget data and saves

the transaction

The budget transfer is posted and updated in

General Ledger.

Does preparer have security rights to post?

User selects Notify button

Template Opens:Recipient dependent on departmental procedure

Entry Approved?Email launched/Journal entry reviewed

NO

YES

YES

Journal entry and review notes are sent back to

preparer

NO

Budget Transfer Approvals: Revisions

Dept Policy dictates detailed information.

11

Cost-sharing Budget Transfers Cost Sharing represents the portion of a

sponsored project’s total cost that is paid by the university.

Cost Share dollars are identified by specific source and function values.

12

From :

Source Function

100001 (General Operating Funds – Operating) 201 (Instruction – one of many possible)

To:

SourceFunction

100005 (General Operating Funds – Cost-Sharing)

212 (Cost Share – Instructional-Sponsored)

213 (Cost Share – Salary Cap Instructional)

312 (Cost Share – Research – Sponsored)

313 (Cost Share – Salary Cap Research)

352 (Cost Share – Exp. Station)

412 (Cost Share – Public Service)

412 (Cost Share – Salary Cap Public Service)

Sources and Function to Use When Moving Dollars from General Operating Departmental Budget to Cost-Share

13

OSP receives new award OSP notifies GCA that new award has been received

GCA sets up project and associated Cost-Share budget in Projects Module

OSP notifies unit (PI and Bus Mgr) that new award has been received

Unit enters the budget transfer data and saves the transaction

Does preparer have security rights to post?

The budget transfer is posted and updated in General Ledger.

Unit notifies GCA that transfer has been completed.

User selects NOTIFY button

Template Opens: Recipient dependent on departmental procedure

Email launched / Budget Transfer reviewed

Entry approved?

Journal entry and review notes are sent back to preparer

YES

NO

YES

NO

Budget Transfer Approvals: Cost-Sharing

Dept Policy dictates detailed information.

GCA notifies unit of new project id

14

Internal Grant / Incentive Budget Transfers

Transfers cover a variety of situations, including: Faculty Research Grants, CUPS program, Instructional Incentive Grants

Initiated by the Department Managing the Funds

Low Volume, but Many Lines

15

Budget Transfer Approvals: Internal Grant / Incentives

Department managing the funds enters the data for the transfer on-line and saves the entry.

Managing department selects “NOTIFY” button

Template Opens: Recipient should be unit receiving the funds

Does Unit Approve?

Unit completes “Revision” steps

Receiving department selects “NOTIFY” button to alert sending department of issues

16

Base-Revision Budget Transfers

Transfers involving the movement of base general fund dollars from one unit to another for future years.

17

Budget Transfer Approvals: Base RevisionsUnit sending budget dollars enters the data for the budget transfer and saves.

User MUST use the “NOTIFY” button to send approval request to Dean/Director

Dean/Director reviews request

Request Approved?

FAB reviews requestDean/Director MUST use the “NOTIFY” button to send approval request to FAB

Request Approved?

The budget transfer is posted and updated in General Ledger

Budget Transfer and review notes sent back to preparer

Budget Transfer and review notes sent back to Dean / Director

18

Budget Transfers

Setup Steps

19

Budget Transfers – Setup Steps

Determine Chart String Want to Transfer From Determine Chart String Want to Transfer To

No Chart String “Create” Process Review Plans with Unit Business Manager Verify that All Needed Chart Field Values Exist If New Chart Field Values are Needed, Or Questions

Remain, Work with Analyst in FAB

20

Example Have budget dollars in:

Want budget dollars in a string with a purpose code for a special seminar Check with business manager Check to see if such a purpose code exists

Would a generic value work? Or is something new needed? If new values needed, work with FAB analyst Process a transfer to new string:

21

Cost-Sharing Example Have budget dollars in departmental string:

Want budget dollars set up for cost-sharing Review OSP notification for specifics Process a transfer to new string:

22

Budget Transfers

Terminology

23

Budget Transfers – Terminology

“Ledger Group” For operating budgets, two choices:

OPS_CH (for expense) OPREV (for revenue)

For projects, other options apply Budget Transfer Types

“Transfer Adjustment” for most transfers “Transfer Original” for base revisions

24

Budget Transfers – Rules to Remember When is a “zero” budget needed? What PeopleSoft accounts should be used?

25

Budget Transfers

Examples

26

Budget Transfers - Example

Navigation: Main Menu > Commitment Control > Budget Journals

Select “Enter Budget Transfer”

27

At the introductory screen, type “UVM01” in the Business Unit, enter the date you want the transfer to take effect and click “Add”

Always “UVM01”

Date transfer takes effect

Let PeopleSoft assign the Journal ID

28

Budget Header screen appears for date you specified

Begin by clicking the magnifying glass next to “Ledger Group”

29

Click on the appropriate ledger group

(Refer to definitions if necessary)

30

Next, select the appropriate Budget Entry Type from the drop down.

31

For the “OPS_CH” ledger group, you need to select an entry type for the parent. Make sure both entry types are the same.

32

Enter a description and then click the “Budget Lines” tab

33

Enter the chart string you want to take dollars from. Note the minus sign.

34

Press the “+” sign to get the row that will be the recipient of the dollars. By default, the second line will be an exact copy of the first.

35

Change the chart fields for the second string and reverse the sign on the dollars.

36

Verify that Debits = Credits and then press Save

37

If you are authorized to enter budget transfers, but not to post, you will see an “Error” status when you save. This is ok. Your transfer is still saved.

Press the “Notify” button to send email to your approver.

38

An email template will come up

Put your approver’s email address in the “To” block.

You may also add a subject line and your own message.

PeopleSoft adds the link information that your approver will need.

Click “OK” to send

39

The approver will receive an email something like this:

Clicking on the link will bring up the PeopleSoft log-in page.

40

If the approver is not authorized to post the transfer, he or she should press the “Notify” button and repeat that process.

41

If the approver is authorized to post the transfer, he or she should make sure “Post Journal” is selected in the Process drop-down box and then press the “Process” button.

42

A verification screen will come up; press “Yes”

You’ll see a flashing “Processing” message in the upper right hand corner for a few moments

43

When the process is finished, the budget status will change to “Posted”. You may then use other navigation to leave this screen. Your budget transfer is complete.

44

Budget Transfers

Handling Common Errors

45

Invalid Chart Field Value:

46

Missing Data from the Budget Header Tab

47

Required Chart Fields Left Blank:

48

Message is repeated on “Budget Errors” tab:

49

Budget Checking Warnings:

50

To find the budget issues, navigate to Commitment Control > Review Budget Check Exceptions > Budget Exceptions

Fill in at least the top two search fields; using more will make it easier to find your work.

51

When your search results return, click on one of the rows that you were using in your transfer

52

You’ll go to a page showing the details of the error, along with links returning you to your work.

Link that will take you backward to your work

53

More Detail on the Error:

Link to actual budget transfer

54

Summary of Steps

Determine type of transfer (Revision, Cost Share, etc.)

Identify appropriate approval path Decide on chart strings to use Process transfer according to flow required

for each transfer type

55

Journal Entries / Budget Transfers

Getting Help

56

Getting Help

Online Job Aids and UPKs Open Labs

(Week of July 5th and each subsequent week in July)

Business Manager FAB Analyst