Kuali Financial Systems General Ledger Overview Damon Dorsey, Indiana University

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

Kuali Accounting Cycle Diagram

Accounting Cycle Continued

Accounting Cycle Components Sufficient Funds Checking (Optional) Calculates an available amount and prevents document approval in the event of insufficient funds (budget - actual expenses - outstanding encumbrances - pending entries.) Scrubber Performs the following major functions: Validation of Data References 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 Sufficient Funds can be enabled by account and has five variations: object code, level, consolidation, by account, and cash checking.

Accounting Cycle Components Scrubber continued . . . Error handling Most common source for error files for input into the GLCP e-doc (in conjunction with De-Merge process.) 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. De-merger is the main source of transactions for the General Ledger Correction Process (GLCP) e-doc.

Accounting Cycle Components Continued GL Poster Three instances of the poster: Primary poster for the scrubbed transactions Automated reversal process Indirect Cost Recovery (ICR) Performs Limited validation of data (amount, account number, object type, balance type, fiscal year, chart, debit/credit indicator, & reversal date) Initial determination of expenses eligible for ICR • GL Expense Transactions (GLEX) temporary table

Accounting Cycle Components Continued GL Poster continued . . . Updates and inserts to GL tables: GL Detail (GLEN) GL Balance (GLBL) Account Balance (ACBL) Sufficient Funds (SFBL) Open Encumbrances (GLEC) GL Reversals (GLRV)

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. 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

GL Correction Process (GLCP) Restricted e-doc for use by central back office staff. Used to upload files directly for GL processing. Can also select and edit existing files (such as error files from the scrubber process). Allows simple mass-edits of files using criteria (similar to a find/replace) or manual edit of files.

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…

Additonal Functions - Turn On/Off Flexible Offsets Each implementing institution can determine if offsets (cash, accounts payable, salaries payable, etc…) should post to the same account as the original transaction or to another defined accounting string. Bank Specific Claim on Cash (Release 3.0) Associates receipts and disbursements with a specific bank account. 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 a bank reference table.

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 – Include all pending ledger entries, approved pending ledger entries, or exclude pending entries from the results. Consolidation/Detail Option –Accumulate results by Sub-Account, Sub-Object Code, and Object Type. Export Functions – Results may be downloaded in CSV, Excel, or XML formats. Sort-able Results – Output may be sorted in ascending or descending order by clicking on the appropriate columns.

On-Line Balance Inquiries – (Cont.) Balance Inquiry Screens Available Balances Balances by Consolidation Cash Balances General Ledger Balances General Ledger Entry Pending General Ledger Entry Open Encumbrances 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 .

Year-End Processing Year-End E-docs Activation of year-end documents for posting to fiscal period 13 Year-end documents post to the prior fiscal year. Year-End versions of the: Budget Adjustment Distribution of Income/Expense General Error Correction Transfer of Funds Salary Transfer Benefit Expense Transfer

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).

Year-End Processing Continued Other Processes 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

Questions?