february 2012. chart of accounts basics accounting flow of sample transactions year end processes...

February 2012

Chart of Accounts Basics Accounting Flow of Sample

Transactions Year End Processes Accounts Receivable Inquiry / Query

Tools General Ledger & Budget Inquiry /

Query Tools Questions & Answers

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ENCOMPASS uses Department chartfield values that are listed in State Personnel Department's PeopleSoft HR module Identify needed Department chartfield values (per functional list); IT, HR, Accounting, Legal, Administration, etc... If your agency doesn’t have separate Departments for these functions, please contact your HR Department or State

Personnel so that values can be created

4

Centrally DefinedAgency Defined with Central

Coordination (Projects Module)

Fund (old Fund/Center)

Account (Object)

Program

Department*

Locality

Product

Incident

Budget Reference

Source Category (distributional)

Project

Activity

Source Type

Source Category (functional)

Source Sub Category

Analysis Type

* Assigned by State Personnel Department

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Chart of Accounts Basics

FundCenterBudgeted Chartfield

FundBudgeted Chartfield

ProgramClassification of an activity according to its purpose or

objective

DepartmentUsed to classify

transactions according to a

defined organizational

structure

DepartmentSame purpose, but

must sync with Human Resources

Department

ProductDiscretionary

value used for different purposes

ProductTracks cost of

goods or services provided to

another State agency ( ISF Only)

ClassDiscretionary

value: often used for Locality or other purpose

LocalityIdentifies a geographic

location or area. May map back to Class for some

agencies.

Budget Reference

Budget Reference

Remains the Same

Object

AccountSame purpose,

some values different

GEAC Core Chartfields

PeopleSoft Core ChartfieldsCentrally Defined Chartfield - Required

Used only in certain situations

Centrally Defined Chartfield - Optional

Business Unit

Business Unit

Remains the Same

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Primary means for tracking and relating specific sources and uses of revenues or budget authority

Generally, do not cross BUs Generally, GEAC Fund/Center combinations were

mapped to the PeopleSoft Fund chartfield Exceptions: Federal, Capital, and County-Specific

Fund Centers Multiple Attributes are assigned to each Fund

chartfield value to assist with Financial, Federal and Capital Project Reporting

Five Numeric Characters, Centrally Defined

Required Field

Fund values Spreadsheet updated monthly on ENCOMPASS website

See ENCOMPASS Documents Chart of Accounts folder FUND_TBL_MMDDYY – list of Funds FUND_TBL_DETAILS_MMDDYY_Set ID_BU – list of Funds by Business

Unit with Attributes FUND_TBL_DETAILS_MMDDYY_Set ID_STIND – list of Funds statewide

with Attributes

Legal Fund Generally Same as Four Digit Fund in GEAC 1000 = General Fund Budget Agency Revenue Forecast Tracks General

Fund Revenue, Control 3 Funds

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8

Control Code: Control Code 3: Appropriations Revert; Receipt

of Revenue has no Budget Impact Control Code 4: Biennial Appropriations;

Receipt of Revenue has no Budget Impact - New Control Code 5: Non-Reverting; Receipt of

Revenue increases Appropriations Control Code 6: Non-Reverting; Receipt of

Revenue increases Appropriations and Allotments

Control Code 7: Non-Reverting; Receipt of Revenue has no Budget Impact

New - created for all Federal grants and Capital projects

Replaced GEAC Object Measure by nature of receipt,

expenditure, or effect on financial position of Fund

Ledgers Financial –use numeric accounts - ACTUALS Budgetary (Commitment Control) – accounts

start with E or R APPROP, ALLOT_CTRL, ALLOT

Six Numeric Characters, Centrally Defined Required Field

9

One set of chartfield values used across all BUs First digit represents major reporting classification:

Balance Sheet 1 = Assets 2 = Liabilities 3 = Fund Balance

Income Statement 4 = Revenues 5 = Expenditures 6 = Internal Service Fund Revenues “64” and

Expenses “65” 7 = Other Financing Sources “74” and Uses “75”

Rarely used by anyone except AOS, SBA

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Major Revenue Groups 41 = Taxes 42 = Exchange Revenue 43 = Sales 44 = Grant Revenue 45 = Fines / Penalties 46 = Forfeitures, Abandoned Property,

Donations

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Major Expenditure Groups (Points) 51 = Personal Services (includes Fringe

Benefits) 52 = Utilities 53 = Services Provide by External Entities 54 = Supplies, Materials & Parts 55 = Capital Assets 56 = Distribution to Other Government Units 57 = Grants 58 = Social Service Payments 59 = Admin & Operating Expenses (including In-State & Out-of-State Travel)

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Account values Spreadsheet updated monthly on ENCOMPASS website

See ENCOMPASS Documents Chart of Accounts folder

GL_ACCOUNT_TBL_MMDDYY – list of accounts Column W = Control Accounts – Y/N

ACCOUNT_ATTRIBUTE_MMDDYY – list of 1099 codes associated with Account / Vendor combination

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To prevent direct GL entry into Accounts that should not be used, several designated as Control Accounts Cash and Fund Balance accounts are best

example Control Accounts may only be entered in

subsystems (not General Ledger) Do not appear in list of chartfields when

you click on magnifying glass

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Submit a GMIS issue for new Chartfield Values Except – new Funds should be routed

through SBA Budget Analyst

Review COA Handbook, which is located on ENCOMPASS website for more details on new COA

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All Entries must balance at the Fund Level. When an entry doesn’t balance, PeopleSoft inserts lines with InterUnit/InterFund Cash (111500) to make it balance.

Inter Unit account is considered to be part of Cash Balance of Fund

Entries must have valid Edit and Budget Checking Status to post

Subsystem – won’t post in GL – fixed by GMIS General Ledger – can’t be submitted for agency

approval PeopleSoft summarizes the entries each day by

chartfield, so if there are 10 deposits that have the same set of chartfields, they will result in one entry in the General Ledger.

Details exist in the subsystem

Corrections to Reports of Collection should be made via $0 Reports of Collection at the Treasurer’s office

Journal ID for entries related to AR Deposits will have a prefix of ARD, indicating that they were created in the AR Subsystem

Accounting Date for AR transaction is the day the transaction is approved

Entries post when approved by agency When calendar changes, no ability to make entry for

prior month Existing entries automatically generated in new

month

Corrections related to the CAFR should be made via General Ledger Journal Entries.

Journal ID for GL Journals are numeric, sequential, and system-assigned, indicating direct entry in General Ledger

Accounting Date for AR transaction is the day the transaction is approved

Entries post when approved by agency and by AOS When calendar changes, GL open for prior month for

a few days to allow approval of remaining entries Existing entries must be copied forward to new

month and deleted in prior month

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General Ledger Month-end Closing Schedule

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FY 2012 Accounting

PeriodMonth

Agency Approval / Submission Deadline

General Ledger Accounting Period Close Date

7 January February 2, 2012 February 7, 2012

8 February March 2, 2012 March 6, 2012

9 March April 3, 2012 April 5, 2012

•Once a month is closed, it is never re-opened•AP is closed during the night at calendar end•GL is closed at 5 PM or whenever last journals are approved and posted by AOS on scheduled date

InterUnit 111500

Cash Control 190103

Revenue 401100

Fund

48690

Collection Fund

1000

Cash 110100 InterUnit 111500

Fund

10470

AOS Fund

10001000

1000

1000 1000

Deposit at TOS

Accounting Entries

Deposit at TOS only recognizes the cash. Must be moved out of cash control on daily basis or cash control entries are created.

DOR Staff make accounting entries, which are only approved internally.

Bal =

-1,000

Bal =

-1,000

Bal = 1,000

Bal = 1,000

InterUnit 111500 Revenue 401100

Fund

48690

Collection Fund

1000

InterUnit 111500

Corp Tax 411220

Fund

10850

Revenue Dept

1000

900 900

Deposit at TOS

Accounting Entries

$0 Deposit done at TOS


Bal =

-100

Bal =

-900

Bal = 900

Bal = 100

Allocate Revenue

900900

InterUnit 111500

Cash Control 190103

Revenue 401100

Fund

48690

Collection Fund

1000

Cash 110100 InterUnit 111500

Fund

10470

AOS Fund

10001000

1000

500

1000

Deposit at TOS

Accounting Entries

Deposit at TOS only recognizes the cash. Must be moved out of cash control on daily basis or cash control entries are created.


Bal =

-600

Bal =

-1,500

Bal = 1,500

Bal = 600

900900

500

500500

500

1000

500


Fund

48690

Collection Fund

1000

InterUnit 111500

Corp Tax 411220

Fund

10850

Revenue Dept

1000

900 900

Deposit at TOS

Accounting Entries



Bal =

-110

Bal =

-1390

Bal = 1,390

Bal = 110

Allocate Revenue

900900

500 500490490

490 490

InterUnit 111500 Revenue (401100)

Fund

48690

Collection Fund

1000

Cash InterUnit 111500

Fund

10470

AOS Fund

1000

1000 1000

Deposit at TOS

Accounting Entries

Deposit at TOS only recognizes the cash. Must be moved out of cash control on daily basis or cash control entries are created.DOR Staff make accounting entries, which are only approved internally.

Bal =

-2,110

Bal =

-3,500Bal = 3,500

Bal = 2,110

900900

500 500490490

500 500

Cash Control

1000

500500

1000

2000 2000 20002000

20002000


Fund

48690

Collection Fund

1000

InterUnit 111500

Auto Excise 413200

Fund

45050

Auto Rental Excise Tax

1000

1600 1600



Bal =

-510

Bal =

-1,600

Bal = 1,600

Bal = 510

900900

500 500490490 Deposit at TOS

Accounting Entries

Allocate Revenue

20002000 1600 1600

InterUnit 111500 Revenue 401100Fund

48690

Collection Fund

510

InterUnit 111500

Auto Excise 413200Fund

45050


510

1600 1600

Cash 110100 InterUnit 111500Fund

10470

AOS Fund

3500 3500

InterUnit 111500

Corp Tax 411220Fund

10850

Revenue Dept

1390 1390

Control Code of Fund Control Code 3: Asset Balances swept to Closing Fund (same first 3 digits but

last 2 are 99) Cash left behind for AP and Encumbrances only Fund Balance account 311300 is used

Control Code 4: Odd year – works like control 3 Even year – works like control 5

Control Code 5, 6, and 7: Retain asset balances Income Statement accounts close to Account 311310

Except certain Fund Types close to 311320 or 311330

In FY11, some Funds closed to 311300 and 311310 Being corrected this year-end For purposes of our discussion, there’s no difference between

these accounts

Before Year-End Close is run, allocations are run to Close out InterUnit Cash to Cash

All balances in 111500 are moved to 110100 Period 996 entries, net cash impact for a Fund = $0 Journal Prefix FYA

Revert Asset Balances for Control 3 Funds Asset Balances swept to Closing Fund (same first 3 digits

but last 2 are 99) Except cash is left behind for Accounts Payable not yet

paid Period 996 entries, cash is removed from Fund, remains in

Legal Fund Journal Prefixes FYC, FYD, FYF

Sweep Revenue received for Federal funds to Closing Fund Revenue balances and associated cash swept to Closing

Fund Period 996 entries, cash is removed from Fund, but

remains in Legal Fund No impact to DOR

When Year-End Close is run, Income Statement Accounts are closed out to Fund Balance Year begins typically with balances in Cash (110100) and

Fund Balance (311300 or 311310) Period 999 entries in year being closed Period 0 entries in new year

This means that query or inquiry results that include periods 0 through 999 for revenue or expense accounts will show $0 balance

This means that query or inquiry results that include periods 1 through 999 for balance sheet accounts will not include amounts that rolled forward from a prior year

Fund Balance accounts are not used 99.9% of the time throughout the year

only for material correcting entries where revenue or expenses have closed to fund balance

InterUnit 111500 Revenue 401100Fund 48690

Collection Fund

510

InterUnit 111500

Auto Excise 413200Fund 45050


510

1600 1600

Cash 110100 InterUnit 111500Fund 10470

AOS Fund3500 3500

InterUnit 111500

Corp Tax 411220Fund 10850 Revenue Dept

1390 1390

Fund Balance 311310

Cash 110100

510

Cash 110100

Cash 110100

Cash 110100

Fund 10099 Closing Fund

Cash 110100

Fund Balance 311300

Fund Balance 311310

Fund Balance 311300

Fund Balance 311300

510

FYA Entries FYC/D/F Entries FYE EntriesPd 996 Pd 999 Pd 999

510

1600

1390

510

3500

1600

1390

3500

1600

1390

1600

139013901390

1390 1390

Fund 48690

Collection Fund

Fund 45050


Fund 10470

AOS Fund

Fund 10850 Revenue Dept

Fund Balance 311310

Cash 110100

510

Cash 110100

Fund 10099 Closing Fund

Cash 110100

Fund Balance 311310

Fund Balance 311300

510

1600 1600

1390 1390

No balances

No balances

This means money will stay in the Collection Fund and other non-reverting funds until external action is taken to move it somewhere else.Year End processes do not move the balances for non-reverting funds, but move revenue account balances to fund balance.The cash balance in each non-reverting fund should be monitored by agency staff on a periodic basis

Still to finish:Queries to use to get details from ARQueries to use to get details from GLInquiry screens to get details from ARInquiry screens to get details from GLAuditor’s Data / Budget Overview that SBA uses

Cash Received by Bank Account Accounts Receivable Payments Review

Payments By Bank Account Defaults to No Bank, No Account, Today’s Date Bank AOS, Account AOS, enter Date Range

(Current Month)

Cash Received by Bank Account Shows Amount Unapplied (Remaining) by BU View 100 to see more BUs

Incomplete Deposits - Details of Remaining Accounts Receivable Payments Review

Payments Incomplete Deposits Defaults to BU, your User ID Blank User ID and hit Search

Shows Deposit IDs needing Accounting Entries and Approval (check Complete box)

Deposits should be approved same day as deposit at TOS

Review Deposit Accounting Accounts Receivable Payments Direct

Journal Payments Review Deposit Accounting

3 tabs – Chartfields, Project Chartfields, Journal Details

This only works for Deposits that are complete and have journal generated (nightly process).

AR_COLLECTION_FUND_DEPOSITS Private query joins PAY_MISC_DST (contains

Accounting Chartfields for Regular Deposits) and SOI_PAYMNT_DESC (Description field)

Criteria – important to be as specific as possible

Output Fields

General Ledger Journals Journal Entry Create / Update Journal Entries

Have to know the journal number or combo of fields

Header tab – Long Description should be as thorough as possible – permanent record of reason for entry

Lines tab – Chartfield entryJournals must balance at Fund levelJournals must be Valid in Editing and Budget Checking before submitting for approval (use drop down box)System edits and budget checks journals every 15 minutes, as long as less than 20,000 lines / transactions

Approval tab – Step 01 = Agency ApprovalAOS runs query periodically to identify approved journalsAOS doesn’t begin reviewing journal until agency has approved

General Ledger Review Financial Information LedgerHave to name the inquiry

I use BU, could name by Fund #

Enter BU, Ledger = ACTUALS, Fiscal Year, From/To PeriodEnter as many chartfields as appropriateCan use % as wildcard, use YTD Balance for Asset accounts

Click Activity to see which transactions make up balanceDefaults to show 1st 100 rows

Click through to source transaction(s)

General Ledger Review Financial Information JournalHave to name the inquiry


Enter BU, Ledger = ACTUALS, Fiscal Year, From/To PeriodCan use % as wildcard

Click Journal ID to drill downDefaults to show 1st 100 rows

Click through to subsystem transaction(s)

Shows transaction number in subsystem

Commitment Control Review Budget Activities Budget OverviewHave to name the inquiry


Enter BU, Ledger Inquiry Set, CORE, Fiscal YearLedger Group most commonly used is APPROPEnter Fund number

For Control 5 & 6 Funds, Available Budget equals Cash Balance in Fund for APPROP ledgerCan click through to transactions just like other inquiries

Website developed and maintained by Budget Agency http://apps1.sba.state.in.us/aud/aiproto.x.asp

Daily file updates data from PeopleSoft Budget Trial Balance – runs nightly at 2 AM General Ledger Trial Balance - nightly at 2 AM

or 3 AMLast file for each month is savedContains historical data back to June 30, 1993Navigational arrows move back/forward one month or one year

App / Allot TB – much like Budget Overview Combines APPROP and ALLOT_CTRL ledgers Previous Year based on Budget Reference of

transaction Current & Previous combined = Cash Balance

All Accounts TB – mostly GL data (ACTUALS ledger)Again, add Current Year and Prior Year to get true balanceSpending TB and Revenue TB are different views of same data in All Accounts TB

GL_ITEMS_FOR_A_FUND Private query joins JRNL_HEADER (status of

journal, long description) and JRNL_LN (chartfields) tables

Criteria – important to be as specific as possible, adjusted depending on needs

Output Fields