Joan Hagen, Indiana University Vince Schimizzi, Michigan State University Sterling George, Indiana University Kuali Days Overview - Intermediate

Agenda I. Chart set-up & validation –E-docs –Reference tables –Adding custom attributes to chart tables –Chart of accounts characteristics II. Financial transactions –Main menu –Edits and business rules –General ledger pending entries –Lifecycle flow diagram III. Workflow routing and approval –Factors affecting workflow –Available actions –Levels of routing –Delegates (primary and secondary) & Workgroups –Ad-Hoc Routing, Blanket and Supervisor Approval IV. Accounting cycle –Transaction flow diagram –Primary components –Year-end closing –Kuali enhancements V. Online balance inquiries –Screens –Options

I. Chart Set-Up & Validation –E-docs – account, sub account, object code, sub object, account delegate, organization, project code –Reference Tables – accounting period, balance type, chart, document type, fund group, sub fund group, object consolidation, object level, object type, offset definition, origin code –Adding Custom Attributes to Chart Tables –Chart of Accounts Characteristics

Account Document - General

Account Document – Responsibility/C&G

Account Document – Custom Attributes

Adding Custom Attributes – Chart Tables

Organization Document

Object Code Document

Chart of Accounts Characteristics Hierarchical in nature – Charts report to higher level charts – Accounts report up through organizations – Accounts also map to sub fund groups and then to fund groups – Object codes map to levels and then to consolidations – Object codes also map to object codes of higher level charts allowing for the rollup to an institutional chart for external reporting – Reports to functionality enables multiple chart of accounts Fiscal officer, account manager, and account supervisor are attributes of account. See Routing and approval can also occur at points in the organization structure strengthening internal controls Higher education function code is an attribute of account used in the creation of functional classification financial reports Enables multiple views and levels of reporting Defines acceptable values for financial transactions and in some cases may trigger additional accounting entries Custom attributes may be added to any chart of accounts table via the Administration tab

II. Financial Transactions Main Menu – accrual voucher, budget adjustment, cash receipt, disbursement voucher, distribution of income and expense, journal voucher, transfer of funds Edits and Business Rules – data validation & balancing, document restrictions, user maintained business rules Financial Transaction Lifecycle

Main Menu

Financial Transactions Users create transactions with built-in edits before transactions route for approval Fully approved transactions are sent to the general ledger Allows read-only access to transactions via document search

Financial Transactions Continued Validations Restrictions –Account –Object code Balancing rules Special features/Specific documents Authorizations/Routing

Business Rules Maintained by Financial System Parameter Tables Allows Functional Users to maintain and create business rules Allows institutions to customize out of the box business rules based on their codes and policies

Financial System Parameter Lookup

Financial System Parameter Maintenance

Offset Entries Users create transactions based on what they know - From/To, etc. The system creates the offsets to the appropriate balance sheet account Flexibility of where cash is posted: –Within the account to create self balancing accounts –To an institutional account Pending entries are part of the document

General Ledger Pending Entries

Financial Transaction Lifecycle

III. Workflow Routing and Approval Factors Affecting Workflow – type of transaction, content of transaction Available Actions – approve, disapprove, acknowledge, FYI review, blanket approve, supervisor functions Levels of Routing – account/fiscal officer, organization/review hierarchy, special conditions Delegates (primary and secondary) & Workgroups Ad-Hoc Routing, Blanket and Supervisor Approvals

Factors Affecting Workflow After a transaction is initiated, Workflow electronically routes the transaction to the proper approvers. The path of approval can be influenced by: –The type of transaction (example: a Cash Receipt document may route differently than a Transfer of Funds) and... –The content of the transaction itself (example: a transaction charging supplies to a grant account may need to route for special approval)

Available Actions Workflow can send users action requests of various types. These requests are collected in the user’s Workflow Action List. Common types of action requests include: Approve: Verify that the transaction is acceptable. Approved financial documents will continue routing to additional approvers, or--if fully approved--be included in the next update to the General Ledger. Acknowledge: A request to view and acknowledge a transaction without the need for a formal approval. FYI Review: A courtesy request allowing the user to view the transaction or just clear the request from their action list without viewing it.

Available Actions Continued Disapproval: Requests for approval can be disapproved, indicating the transaction is incorrect or unacceptable. Disapproved transactions cease further routing and will not be sent to the general ledger. The document initiator and any previous approvers receive an Acknowledgement action request, letting them know the document has been disapproved. Disapproved documents (in fact, any documents) can be copied and used as the basis for future documents. This allows for easy correction and re-submission.

Levels of Routing Generally, financial documents pass through the following route levels (or nodes): –Account Level (Fiscal Officer) - All accounts on a document are identified and the document is routed to the designated approver (in Kuali this person is referred to as a “Fiscal Officer”). –Organization Level (Review Hierarchy) - Every account belongs to an organization and customized routing to individuals or workgroups can be established by each organization based on document type and dollar amount. –Special Conditions Routing - This is a blanket-term for additional route levels that might be triggered by various attributes of a transaction. They often represent special administrative approvals that may be required. They can be based on the type of document, attributes of the accounts being used, or other attributes of the transaction: Disbursement Vouchers for travel must be approved by Travel Management. A transaction using a grant account must be approved by a central Contract & Grant Administration area.

Delegates Fiscal Officers can delegate approval authority to other users based on attributes of a specific transaction such as document type and dollar amount. Delegates approve documents at the “Account Level” of routing as if they were the Fiscal Officer. Two kinds of delegates exist: –Primary Delegates - Documents route directly to primary delegates instead of routing to the Fiscal Officer. –Secondary Delegates - These delegates have a special “filter” option in their action list that allows them to retrieve documents for which they have been given approval authority. Fiscal Officers can still access any documents they are responsible for.

Creating a Primary Delegate

Workgroups A workgroup is a collection of approvers who share a similar responsibility. If a document routes to a workgroup, all members of the workgroup will see that document in their action lists. Once any member of the workgroup takes action on that document, the document is removed from the action list of all other members of that workgroup.

Ad-Hoc Routing, Blanket and Supervisor Approval Ad-Hoc Routing - allows a document initiator or approver to add additional individuals or workgroups to the routing of a specific document. Approvers inserted into the routing “interrupt” the regular routing process. You can request that an ad-hoc recipient Approve, Acknowledge or FYI Review the transaction. Blanket Approval – Users can be set up as Administrators, giving them the ability to blanket approve most transactions they initiate or for which they are an approver. Blanket approval pushes a document to “Approved” status. All approvers who are skipped by the blanket approval receive an Acknowledgement request for that document—ensuring that they see it. Supervisor Approval: –Fully Approve or Disapprove any document, regardless of currently pending approvals. –Approve a single action request for a particular user. –Approve the document through to a different route level (sending it straight to Organization Review, for example).

IV. Accounting Cycle –Flow Diagram – e-docs and external feeds –Primary Components – ledger attributes, offset generation, cost share transfers, cost share encumbrances, capitalization, automated reversals, ICR, error correction –Year-End Closing – e-doc processing and balance forwards –Kuali Enhancements – flexible offsets, banks specific cash, budget year, program code, ICR encumbrances

Flow Diagram

Flow Diagram - Continued

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)

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

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 Accounting Cycle – Kuali Test Drive accounting cycle runs 11pm EDT Sunday – Friday with refreshes of the test database each Saturday at 5:30am. Documents fully approved by the 11pm accounting cycle will post to the General Ledger tables.

Functionality Driven by 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…

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 –Accounting transactions occur in two fiscal years Normal Kuali documents post in the period approved –Prior to June 30 they post to the previous fiscal year –After June 30 they post to the new fiscal year 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 – General Fund Organization Reversion, Negative/Positive Cash, Outstanding Encumbrances, Prior Year June Activity, General Ledger, Fund Statements, Preliminary Balance Sheet – also available as Pre-Defined Queries (PDQ’s) at Pre-Closing (June 6), First Closing (July 6), Second Closing (July 14), and Final Closing (July 25) Generation of Monthly Standard Reports for First and Final Closing

Year-End Processing Continued Four primary year-end processes are run in sequence to properly close a fiscal year: 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. Business rules are established for organizations within the General Fund and computations are performed by common categories (Salaries and Wages, Financial Aid, Compensation, Travel, Capital, Other Expenses, etc…). Following are two examples of possible business rules: –Carry forward enough budget to cover outstanding encumbrances. Then carry forward any remaining positive budget balances and revert any remaining negative budget balances. –Don’t carry forward enough budget to cover outstanding encumbrances. Then revert remaining budget balances. Encumbrance Forwards – References the GL Open Encumbrance (GLEC) table and sets up outstanding encumbrances for the new fiscal year. Close Out of Nominal Activity – Closes all nominal activity (Income and Expenses) to Fund Balance based on amounts found in the GL Balance (GLBL) table. Beginning Balance Forwards – Establishes beginning balances for Assets, Liabilities, and Fund Balance (as Financial Beginning Balances) and cumulative Income and Expenses (as Contracts and Grants Beginning Balances). The latter is only performed for a select set of Fund Groups.

GL Enhancements - Turn On/Off Flexible Offsets (Phase I) – 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 (Phase I)– 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 (Phase II) – 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.

GL Enhancements Continued - Turn On/Off Budget Year (Phase II) – Allows an institutions to associate individual transactions by a budget year (for a given funding source), which may differ from the institution’s fiscal year. Examples might include: annual appropriations from the federal government to land-grant institutions; annual appropriations from state or local governments; and funding for sponsored research projects, which may cover a period of several years. When assigned the budget year attribute will post to the general ledger detail (GLEN) table and additional budget year balance tables. Additional features of the budget year enhancement include: –Multiple budget years for the same funding source may exist at various stages of the budget year life cycle (future, open for budget, open, restricted, extended, closing, and closed). –Business rules will govern the appropriateness of an assigned budget year based on the budget year life cycle status and the document being processed. –A default process will assign an appropriate budget year should an external feed not provide a budget year value. –A budget year close process, driven by business rules, will govern how unexpended funds are carried forward or lapsed back to a granting agency.

V. Online Balance Inquiries –Screens – balances by consolidation, account balances, cash balances, general ledger balance, general ledger entry, general ledger pending entry, open encumbrances –Options - drill down capability, include pending ledger entries, aggregate sub accounts, sub object codes, and object types, monthly or cumulative totals

On-Line Balance Inquiries Continued 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. 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, Sub-Object Code, Object Type, Balance Type, and Accounting Period. Balances can be displayed individually for each Accounting Period or accumulated and reported as year-to-date totals. General Ledger Detail - Listing of transactions posted to the General Ledger. Pending General Ledger Detail - 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 for an Account Number. Both the original encumbrance amount and the amount relieved to date are displayed.

On-Line Balance Inquiries –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 will 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 or return each occurrence for these fields. –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.

Balances by Consolidation Inquiry

Balances by Level for GENX Consolidation

Balances by Object Code for S&E Level

General Ledger Balance for 4190 Object Code

General Ledger Entry for 4190 Object for November (Actual)

PDCO E-Doc Supporting the Transaction

Questions

Appendix A.Chart 1. Object code levels 2. Sub fund groups 3. Organization hierarchy 4. Out of the box routing of chart documents B.Accounting Cycle 1. Detail table 2. Balance table 3. Scrubber report 4. Error correction

A.1. Level Maintenance Document

A.2. Sub Fund Group Maintenance Document

A.3. Organization Hierarchy with Accounts/Sub-Accounts VPPF UA IU FMS FMOPFMSY AUCAPCUSTR

A.4. Out of the Box Routing - Chart Documents Any Kuali user can initiate Chart of Accounts documents found on the Main Menu tab The routing sequence of the primary chart documents occur as follows: – Account – fiscal officer, org hierarchy, campus chart manager, university chart manager, special conditions routing – Account Delegate - fiscal officer, org hierarchy, special conditions routing – Organization - org hierarchy, campus chart manager, university chart manager – Object Code - campus chart manager, university chart manager – Sub Accounts/Sub Objects - fiscal officer, org hierarchy, special conditions routing – Project Code - org hierarchy Initiation of Chart of Accounts documents on the Administration tab are limited to users in the... Workgroup and take affect when the document is completed

B.1. General Ledger Detail FIELD NAMEFORMATBUSINESS NAME UNIV_FISCAL_YRVARCHAR2(4)FISCAL YEAR FIN_COA_CDVARCHAR2(2)CHART ACCOUNT_NBRVARCHAR2(7)ACCOUNT NUMBER SUB_ACCT_NBRVARCHAR2(5)SUB ACCOUNT FIN_OBJECT_CDVARCHAR2(4)OBJECT CODE FIN_SUB_OBJ_CDVARCHAR2(3)SUB OBJECT FIN_BALANCE_TYP_CDVARCHAR2(2)BALANCE TYPE FIN_OBJ_TYP_CDVARCHAR2(2)OBJECT TYPE UNIV_FISCAL_PRD_CDVARCHAR2(2)FISCAL PERIOD FDOC_TYP_CDVARCHAR2(4)DOCUMENT TYPE FS_ORIGIN_CDVARCHAR2(2)ORIGIN CODE FDOC_NBRVARCHAR2(14)DOCUMENT NUMBER TRN_ENTR_SEQ_NBRNUMBER(5)SEQUENCE NUMBER TRN_LDGR_ENTR_DESCVARCHAR2(40) TRANSACTION DESCRIPTION

B.1. General Ledger Detail Continued FIELD NAMEFORMATBUSINESS NAME TRN_LDGR_ENTR_AMT NUMBER(19,2)TRANSACTION AMOUNT TRN_DEBIT_CRDT_CDVARCHAR2(1)DEBIT CREDIT CODE TRANSACTION_DTDATETRANSACTION DATE ORG_DOC_NBRVARCHAR2(10)ORG DOCUMENT NUMBER PROJECT_CDVARCHAR2(10)PROJECT CODE ORG_REFERENCE_IDVARCHAR2(8)ORG REFERENCE ID FDOC_REF_TYP_CDVARCHAR2(4)REFERENCE DOCUMENT TYPE FS_REF_ORIGIN_CDVARCHAR2(2)REFERENCE ORIGIN CODE FDOC_REF_NBRVARCHAR2(9)REFERENCE DOCUMENT NUMBER FDOC_REVERSAL_DTDATEREVERSAL DATE TRN_ENCUM_UPDT_CDVARCHAR2(1)ENCUMBRANCE UPDATE CODE TRN_POST_DT DATEPOST DATE

B.2. General Ledger Balance FIELD NAMEFORMATBUSINESS NAME UNIV_FISCAL_YRNUMBER(4)FISCAL YEAR FIN_COA_CDVARCHAR2(2)CHART ACCOUNT_NBRVARCHAR2(7)ACCOUNT NUMBER SUB_ACCT_NBRVARCHAR2(5)SUB ACCOUNT FIN_OBJECT_CDVARCHAR2(4)OBJECT CODE FIN_SUB_OBJ_CDVARCHAR2(3)SUB OBJECT FIN_BALANCE_TYP_CDVARCHAR2(2)BALANCE TYPE FIN_OBJ_TYP_CDVARCHAR2(2)OBJECT TYPE ACLN_ANNL_BAL_AMTNUMBER(19,2)ANNUAL BALANCE FIN_BEG_BAL_LN_AMTNUMBER(19,2)FINANCIAL BEGINNING BALANCE CONTR_GR_BB_AC_AMTNUMBER(19,2)C&G BEGINNING BALANCE

B.2. General Ledger Balance Continued FIELD NAMEFORMATBUSINESS NAME MO1_ACCT_LN_AMTNUMBER(19,2)MONTH 1 AMOUNT (JULY) MO2_ACCT_LN_AMTNUMBER(19,2)MONTH 2 AMOUNT (AUGUST) MO3_ACCT_LN_AMTNUMBER(19,2)MONTH 3 AMOUNT (SEPTEMBER) MO4_ACCT_LN_AMTNUMBER(19,2)MONTH 4 AMOUNT (OCTOBER) MO5_ACCT_LN_AMTNUMBER(19,2)MONTH 5 AMOUNT (NOVEMBER) MO6_ACCT_LN_AMT NUMBER(19,2)MONTH 6 AMOUNT (DECEMBER) MO7_ACCT_LN_AMTNUMBER(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_AMTNUMBER(19,2)MONTH 10 AMOUNT (APRIL) MO11_ACCT_LN_AMTNUMBER(19,2)MONTH 11 AMOUNT (MAY) MO12_ACCT_LN_AMTNUMBER(19,2)MONTH 12 AMOUNT (JUNE) MO13_ACCT_LN_AMTNUMBER(19,2)MONTH 13 AMOUNT (CLOSING)

B.3. Scrubber Error Report

B.4. GL Correction Process (GLCP)

B.4. GL Correction Process (GLCP) - Continued