January 30, 2008 Reconciling to Banner

Reconciliation Purpose Ensure proper accounting records are maintained Confirm correct accounting transactions were posted to your account Verify accuracy of amounts paid Identify outstanding transactions (encumbrances pending to liquidation) Obtain accurate account status

What is a Reconciliation? Match two sets of records to ensure figures are in agreement Example: Match your records of requisitions prepared to the expense and encumbrance transactions posted to the Banner system Identify differences between the two sets of records. Reasons for difference might be: Posting errors Valid changes to the original amount requested Timing differences which will clear with time

Reconciliation Benefits Discover erroneous transactions Provide reliable status of your budget Allow better decision making May increase an organization’s available budget by clearing outstanding transactions

Example BudgetExpenseEncumbrance Available Balance 1)1,000.00$1, $0.00 $1, ) Setup budget

Example BudgetExpenseEncumbrance Available Balance 1)1,000.00$1, )100.00$ $1,000.00$0.00$100.00$ )Setup budget 2)Order supplies for $100.00

Example BudgetExpenseEncumbrance Available Balance 1)1,000.00$1, )100.00$ ) $ $1,000.00$100.00$0.00$ )Setup budget 2)Order supplies for $ )Pay order of supplies for $100.00

Example BudgetExpenseEncumbrance Available Balance 1)1,000.00$1, )100.00$ ) $ )500.00$ $1,000.00$100.00$500.00$ )Setup budget 2)Order supplies for $ )Pay order of supplies for $ )Order consumables for $500.00

Example BudgetExpenseEncumbrance Available Balance 1)1,000.00$1, )100.00$ ) $ )500.00$ ) $ ) $ $1,000.00$500.00$0.00$ )Setup budget 2)Order supplies for $ )Pay order of supplies for $ )Order consumables for $ )Pay only $400 for order of consumables 6)Disencumber remaining $100 of consumables order

Banner Transactions Types On Banner, the Field column on FGITRND can help you determine the type of transaction OBD – Budget transaction RSV – Encumbrance transaction from a Requisition ENC – Encumbrance transaction from a Purchase Order YTD – Expense transaction from an Invoice, Journal Entry or Feeds from other Banner systems (Student, Human Resources) “I” documents are Invoices “J” documents are Journal Entries “F” documents are Feed transactions

Tracking Encumbrances All encumbrances should eventually clear when payment (invoice) is made. On Banner, form FGIOENC provides you a list of all open encumbrances for an organization. If you identify an encumbrance that should not be open

How to Get Started? 1. Obtain access to your department’s organizations a. Download Banner Finance Access Request Form from Business Office website ( fice/index.html) fice/index.html

How to Get Started? 2. Become familiar with useful forms in Banner a. FGIBDST – Summary of total adjusted budget, expenses, commitments and available balances by account code b. FGITRND – Detail transactions c. FGIOENC – List of open encumbrances d. FGIENCD – Detail of transactions posted against an encumbrance (original encumbrance, adjustments, payments) e. FOIDOCH – Document history and detail of all documents associated to a specified document

Who to contact with Questions? On Encumbrances (Requisitions or Purchase Orders)- Purchasing department ( ) On Payments (Invoices) – Accounts Payable department ( ) On Journal Entries – General Accounting department ( or )

Exercise – Step #1 Update "Department Expense Log" with Purchase Order and Invoice document number if available. Banner form FOIDOCH allows you to find all document history related to a document requested. For example, if you enter a requisition number and click on next block, the form will display all the POs and Invoices issued for the Requisition entered.

South Texas College Department Expense Log Organization: STC Orgn Name Operating Requisition #DateDescriptionVendor Purchase Order Invoice Original Amount Adjustment Revised Amount 1R /05/07SuppliesA P R /15/07ComputersA P I , R /18/07PrintersA R /30/07Journal SubscriptionA P R /04/07Equipment rentalA P R /13/07Temporary staffA P I R /22/07Advertising at The MonitorA P R /02/07Sprint PCS chargesA P I R /15/07BooksA P I Step #1

Exercise – Step #2 Identify changes to amount on original requisition and update "Department Expense Log" with necessary changes. a. For items with a Purchase Order assigned only, review the "Detail of Open Commitments (Encumbrances) by Organization / Account Code" report to find changes on amount on original requisition. b. For items with a Purchase Order and Invoices assigned, review both the "Detail of Open Commitments (Encumbrances) by Organization / Account Code" and "Detail of YTD Activity by Organization / Account Code" reports to find changes on amount on original requisition. Note: Items identified as corrections needed on the "Department Expense Log" will be updated on this worksheet. Items identified as corrections needed to be made on the Banner system (such as Requisitions or POs that need to be dropped) will be identified on the Reconciling Items section of the "Reconciliation Worksheet".

South Texas College Department Expense Log Organization: STC Orgn Name Operating Requisition #DateDescriptionVendor Purchase Order Invoice Original Amount Adjustment Revised Amount 1R /05/07SuppliesA P (50.00) R /15/07ComputersA P I , , R /18/07PrintersA R /30/07Journal SubscriptionA P R /04/07Equipment rentalA P R /13/07Temporary staffA P I R /22/07Advertising at The MonitorA P R /02/07Sprint PCS chargesA P I R /15/07BooksA P I Step #2

Exercise – Step #3 Make sure totals on "Department Expense Log" are updated.

South Texas College Department Expense Log Organization: STC Orgn Name Operating Requisition #DateDescriptionVendor Purchase Order Invoice Original Amount Adjustment Revised Amount 1R /05/07SuppliesA P (50.00) R /15/07ComputersA P I , , R /18/07PrintersA R /30/07Journal SubscriptionA P R /04/07Equipment rentalA P R /13/07Temporary staffA P I R /22/07Advertising at The MonitorA P R /02/07Sprint PCS chargesA P I R /15/07BooksA P I Total for all Requisitions 4, (15.00) 4, Step #3

Exercise – Step #4 On "Reconciliation Worksheet", update Banner Totals for Adjusted Budget, YTD Activity, Commitments, and Available Balance. These totals can be obtained from "Summary of Budget Status by Organization" report or directly from Banner form FGIBDST.

South Texas College Reconciliation Worksheet Organization: STC Orgn Name Operating Banner FGIBDST (or Summary of Budget Status by Organization report) Adjusted Budget YTD Activity Commitments Available Balance Banner Totals 10, , , , Department Expense Log Revised Amount Total for all Requisitions Available Balance as per Department Expense Log Difference Step #4

Exercise – Step #5 On "Reconciliation Worksheet", update Revised Amount Total for all Requisitions from "Department Expense Log" worksheet. The amount for Available Balance as per Department Expense Log is calculated as follows: Available Balance as per Department Expense Log = Adjusted Budget total from Banner - Revised Amount Total for all Requisitions

South Texas College Reconciliation Worksheet Organization: STC Orgn Name Operating Banner FGIBDST (or Summary of Budget Status by Organization report) Adjusted Budget YTD Activity Commitments Available Balance Banner Totals 10, , , , Department Expense Log Revised Amount Total for all Requisitions 4, Available Balance as per Department Expense Log 5, Difference Step #5

Exercise – Step #6 The Difference amount should be automatically updated once all the previous figures are updated. It is calculated as follows: Difference = Banner Total Available Balance - Available Balance as per Department Expense Log

South Texas College Reconciliation Worksheet Organization: STC Orgn Name Operating Banner FGIBDST (or Summary of Budget Status by Organization report) Adjusted Budget YTD Activity Commitments Available Balance Banner Totals 10, , , , Department Expense Log Revised Amount Total for all Requisitions 4, Available Balance as per Department Expense Log 5, Difference (209.00) Step #6

Exercise – Step #7 List all the items identified as corrections needed to be made on the Banner system on the Reconciling Items section of the "Reconciliation Worksheet".

South Texas College Reconciliation Worksheet Organization: STC Orgn Name Operating Banner FGIBDST (or Summary of Budget Status by Organization report) Adjusted Budget YTD Activity Commitments Available Balance Banner Totals 10, , , , Department Expense Log Revised Amount Total for all Requisitions 4, Available Balance as per Department Expense Log 5, Difference (209.00) Reconciling Items (Corrections needed to be made on the Banner system) Document # Action Needed Original Amt Revised Amt R Drop Requisition (125.00) P Drop PO (84.00) Total Reconciling Items Step #7

Exercise – Step #8 Once all the Reconciling Items are identified the Reconciled Difference should be zero. If it is still not zero, you will need to go back to the steps listed above to make sure all items were correctly identified.

South Texas College Reconciliation Worksheet Organization: STC Orgn Name Operating Banner FGIBDST (or Summary of Budget Status by Organization report) Adjusted Budget YTD Activity Commitments Available Balance Banner Totals 10, , , , Department Expense Log Revised Amount Total for all Requisitions 4, Available Balance as per Department Expense Log 5, Difference (209.00) Reconciling Items (Corrections needed to be made on the Banner system) Document # Action Needed Original Amt Revised Amt R Drop Requisition (125.00) P Drop PO (84.00) Total Reconciling Items Reconciled Difference - Step #8

Questions?