1. Statewide Financial System Program 1 GL 205 Processing Journal Entries Welcome

2. Statewide Financial System Program 2 Refrain from side conversations Obey building safety rules and regulations Silence cell phones, PDAs, refrain from checking email Ask Questions Take breaks as needed Ground Rules

3. Statewide Financial System Program 3 Learning Objectives After completing this course you should be able to:  Create, Validate, Approve, and Post Journals.  Use Journal Entry Tools  Process Intra- and Inter-Agency Journals  Create Standard Journals.  Inquire Upon Journals and Ledgers.  Run General Ledger Reports.  Explain the scope of SFS General Ledger (GL) training.  Locate additional training materials, job aids, and other useful information.

4. Statewide Financial System Program 4 Training Methodology  Training Steps:  Tell Me – Facts, Concepts, Terms, Definitions.  Show Me – Relevant Demonstrations of Process Steps.  Let Me – Hands-on practice in User Productivity Kit (UPK) and Live Environment.  Help Me – Facilitator Support.  Training Materials:  Course Presentation.  UPK Simulations.  Training Exercises and Data Sheets.  User Guide and Job Aids.

5. Statewide Financial System Program 5 Agenda  SFS GL Terms & Concepts  Entering, Validating, and Submitting Journals  Using Journal Entry Tools  Processing Intra- and Inter-Agency Journals  Processing Standard Journals  Inquiring and Reporting Upon Journals  SFS GL Learning Path and Resources

6. Statewide Financial System Program 6 SFS GL Terms & Concepts In this lesson, you should learn:  Key SFS General Ledger terms and concepts.  Key SFS General Ledger process changes.  Key SFS General Ledger ChartField values.

7. Statewide Financial System Program 7 Key Terms and Concepts SFS GL Terms & Concepts Term / ConceptDefinition ChartFields ChartFields can be thought of as “short codes" that represent a longer string of numbers used to categorize financial and budget transactions. Collectively, these basic fields make up the Chart of Accounts (COA). For example: Program, Fund, and Account. Ledgers Ledgers summarize posted general ledger journals for a set of ChartField values by accounting period and fiscal year. Multiple detail Ledgers can be linked together in a Ledger group. GL Workflow An automated process that allows journals to pass from one approver to another for approval / denial. Rules are set up in the system to determine the workflow paths and approval limits. Budget Check Compares encumbrance & expenditure transactions against remaining budget to determine if a transaction should be allowed to post.

8. Statewide Financial System Program 8 Process Changes (1 of 4) SFS GL Terms & Concepts Old ProcessNew Process Many agencies create journal entries using one side of the entry and the current systems provide the other half of the entry. SFS requires two-sided entries, so accounting entries must be correctly entered with balanced debits and credits by fund and GL business unit. Journal vouchers are entered into CAS after review and approval outside of a system. SFS contains multiple levels of automated workflow approval for GL journals. An agency’s Journal Vouchers are entered, then forwarded to OSC for final approval. After OSC approval, journals are completed. Agencies enter GL transactions directly into SFS where they are subject to both agency and OSC approval via an automated workflow process.

9. Statewide Financial System Program 9 Process Changes (2 of 4) SFS GL Terms & Concepts Old ProcessNew Process Some agencies have immediate checking for invalid account and cost center combinations because their legacy systems will not let them enter an invalid accounting string. Agencies check the validity of ChartField combinations after the transaction is entered (combo-edit process). Current systems operate on Cash Basis accounting. Agencies use Modified Accrual Accounting (MACR) with SFS, which introduces the concepts of assets and liabilities. Current systems do not require accounts to be balanced by agency. SFS requires entries to be balanced by agency (GL business unit), which may introduce transactions and accounting principles unfamiliar to users.

10. Statewide Financial System Program 10 Process Changes (3 of 4) SFS GL Terms & Concepts Old ProcessNew Process Agencies make changes to the Chart of Accounts they manage in their agency-specific legacy systems. All changes to the Chart of Accounts will be subject to the governance and completed centrally. OSC validates interagency payment requests against a running cash balance calculation. SFS validates cash availability at time of payment. This is the same general process as is currently used, but will be enforced throughout SFS. Journal Vouchers are the method by which changes are made to ledgers. Journal entries will be the method by which changes are made to ledgers, however, they are designed to be used only when it is not appropriate to make the change to the ledger from the originating module.

11. Statewide Financial System Program 11 Process Changes (4 of 4) SFS GL Terms & Concepts Old ProcessNew Process Agencies re-enter a journal as a new journal voucher when there is a need for an identical transaction. Agencies copy a previously applied journal entry and use it as a new journals. Agencies re-enter a journal when it occurs in a recurring manner. Agencies define a set of criteria that will control the recurrence of a journal entry. Journal entries (Journal Vouchers, or JVs) are entered directly into CAS. JVs are used to adjust or correct entries. Agencies record adjustments in the system of original entry instead of directly into the General Ledger. If not available in the other modules, users will make other adjusting journal entries directly to the GL.

12. Statewide Financial System Program 12 SFS GL Terms & Concepts  At the transactional level, the SFS Chart of Accounts is comprised of two elements:  General Ledger Business Unit (BU) – Defined for each entity that maintains and reports on its own transactional data.  Chartfields – Codes used to categorize financial and budget transactions. Statewide chartfield segments include Department, Program, Fund, Account (CAS Object code). Agency-specific chartfields include Operating Unit and Product.  The SFS Chart of Accounts may be explored further in the GL 105: Introduction to Chart of Accounts course.  More details about the SFS Chart of Accounts may be obtained at:  Chart Of Accounts Chart Of Accounts

13. Statewide Financial System Program 13 Entering, Validating & Submitting Journals In this lesson, you should learn:  How to enter and validate journals  How to inquire upon combination edit rules  How to submit journals for approval  How to approve journals  How to review journal statuses

14. Statewide Financial System Program 14 Entering, Validating & Submitting Journals The basic steps of the SFS General Ledger process are depicted below.

15. Statewide Financial System Program 15 Entering, Validating & Submitting Journals  A Journal Entry, or “journal”, in SFS is used to record financial transactions directly to the General Ledger, including to transfer spending or revenue between programs, accounts, funds, or other categories either within or between agencies.  Journals may be subject to differing levels of workflow approval, dependent on their origin or chartfield combinations. The resulting financial transactions are posted in the modified accrual ledger and, as appropriate, the cash ledger.  Agencies and OSC may also post Journals to accrual adjustment ledgers to support financial reporting needs.  According to Generally Acceptable Accounting Principles (GAAP), journals are entered using a double-entry system, where debits equal credits.

16. Statewide Financial System Program 16 Entering, Validating & Submitting Journals Transactions  Entering and validating journals  Inquiring upon combination edit rules  Submitting journals for approval  Approving journals  Reviewing journal statuses

17. Statewide Financial System Program 17 Learning Exercise Navigation Refresher You have been asked to find a journal entry.  You must search for a Journal ID. 10 min Note:  Please refer to your exercise sheet handouts which contain the data you need to complete this activity.  The job aid can be used to assist you.

18. Statewide Financial System Program 18 Learning Exercise Entering and validating a journal You have been asked to enter a journal to record a revenue transfer.  You must create a journal. 20 min Note:  Please refer to your exercise sheet handouts which contain the data you need to complete this activity.  The job aid can be used to assist you.

19. Statewide Financial System Program 19 Learning Exercise Entering and validating a journal You have been asked to enter a journal to record a revenue transfer.  You must create a journal. 20 min Note:  Please refer to your exercise sheet handouts which contain the data you need to complete this activity.  The job aid can be used to assist you.

20. Statewide Financial System Program 20 Using Journal Entry Tools In this lesson, you should learn:  How to create Speed Types  How to enter journals using Speed Types  How to reverse journals  How to copy journals  How to print journals  How to delete journals

21. Statewide Financial System Program 21 Using Journal Entry Tools  Speed Types are shortcut codes that are used to speed up journal entry by automatically populating pre-defined ChartField combinations.  Journals can be reversed to correct errors and make necessary adjustments. Reversals can be made by creating a new reverse journal entry, or by copying an existing journal.

22. Statewide Financial System Program 22 Using Journal Entry Tools Transactions  Creating Speed Types  Entering Journals Using Speed Types  Reversing Journals  Copying Journals  Printing Journals  Deleting Journals

23. Statewide Financial System Program 23 Learning Exercise Entering journals using Speed Types You have been asked to enter a journal to reclass undistributed revenue to actual revenue accounts in SFS.  You must create a journal. 15 min Note:  Please refer to your exercise sheet handouts which contain the data you need to complete this activity.  The job aid can be used to assist you.

24. Statewide Financial System Program 24 Processing Intra- and Inter-Agency Journals In this lesson, you should learn:  How to enter Intra-Agency journals  How to enter Inter-Agency journals

25. Statewide Financial System Program 25 Processing Intra- and Inter-Agency Journals  Intra-Agency - GL journal between Funds  Inter-Agency - GL journal between Business Units

26. Statewide Financial System Program 26 Processing Intra- and Inter-Agency Journals Transactions  Entering Intra-Agency Journals  Entering Inter-Agency Journals

27. Statewide Financial System Program 27 Learning Exercise Entering Intra-Agency Journals You have been asked to enter an Intra-Agency journal to reclass expenditures between Funds.  You must create a journal. 15 min Note:  Please refer to your exercise sheet handouts which contain the data you need to complete this activity.  The job aid can be used to assist you.

28. Statewide Financial System Program 28 Creating Standard Journals In this lesson, you should learn:  How to create and identify model journals  How to define standard journals  How to review standard journals

29. Statewide Financial System Program 29 Creating Standard Journals  Standard journal entries (SJEs) enable the user to automate the entry of similar or identical journals.  There are two types of SJEs in use in SFS:  Recurring – any entry that is periodically generated according to a schedule, such as monthly rent, lease payments, and depreciation  Template – a data-entry model for other journals that can automatically be reproduced on a fixed schedule, or use on request

30. Statewide Financial System Program 30 Creating Standard Journals Transactions  Creating/identifying model journals  Defining standard journals  Reviewing standard journals

31. Statewide Financial System Program 31 Learning Exercise Defining recurring standard journals You have been asked to define recurring journal parameters monthly using a model journal.  Define the parameters to create standard journals. 15 min Note:  Please refer to your exercise sheet handouts which contain the data you need to complete this activity.  The job aid can be used to assist you.

32. Statewide Financial System Program 32 Inquiring and Reporting Upon Journals In this lesson, you should learn:  How to resolve budget check errors  How to run a report in General Ledger  How to inquire upon journals  How to inquire upon ledgers

33. Statewide Financial System Program 33  Budget check errors found during the Journal Edit process must be resolved before the journal can be submitted for approval.  SFS has a number of ledgers: Inquiring and Reporting Upon Journals Term / Concept Definition MOD_ACCRL The main ledger. CASH The cash-basis ledger. ACCRUAL Used for GAAP entries that are not part of the MOD_ACCRL ledger. AGY_ACCRL Used for agency-specific GAAP entries that are not part of the MOD_ACCRL ledger. ADBMTD Used to support STIP calculations and entries.

34. Statewide Financial System Program 34 Inquiring and Reporting Upon Journals Transactions  Resolving budget check errors  Running a report in General Ledger  Inquiring upon journals  Inquiring upon ledgers

35. Statewide Financial System Program 35 SFS GL Learning Path and Resources In this lesson, you should learn:  The SFS GL training structure.  Where to find training materials and resources.

36. Statewide Financial System Program 36 SFS GL Learning Path and Resources SFS GL Training Structure GL 101 Introduction to General Ledger and Commitment Control GL 105 Chart of Accounts Overview GL 205 Processing Journal Entries

37. Statewide Financial System Program 37 SFS GL Learning Path and Resources Location of Training Materials and Class Preparation Aids Location All Training Courses http://www.sfs.ny.gov/index.php?option=com_content&view=article &id=127&Itemid=658 Job Aids and Reference Materials http://www.sfs.ny.gov/index.php?option=com_content&view=article &id=124:job-aids-and-reference-materials&catid=83:training- toolkit&Itemid=668 Reporting Toolkit http://www.sfs.ny.gov/index.php?option=com_content&view=article &id=185&Itemid=695 Quick Start Guides http://www.sfs.ny.gov/index.php?option=com_content&view=article &id=138:quick-start-guides&catid=83:training-toolkit&Itemid=678

38. Statewide Financial System Program 38 Summary Having completed this course, you should now be able to:  Create, Validate, Approve, and Post Journals.  Use Journal Entry Tools  Process Intra- and Inter-Agency Journals  Create Standard Journals.  Inquire Upon Journals and Ledgers.  Run General Ledger Reports.  Explain the scope of SFS General Ledger (GL) training.  Locate additional training materials, job aids, and other useful information.

39. Statewide Financial System Program 39 Thank you for your participation! Conclusion

40. Statewide Financial System Program 40 Slides for Agency Use (Arial, Font 36) Agency specific Heading (Arial font 24)  Topic 1. (Arial Font 20)  Topic 2.  Topic 3.  Topic 4.  Topic 5.

41. Statewide Financial System Program 41 Slides for Agency Use (Arial Headings, Font 36 for single line, 32 for double lines) In this lesson you should learn: (Arial font 24)  Topic 1. (Arial Font 20)  Topic 2.  Topic 3.  Topic 4.  Topic 5.

42. Statewide Financial System Program 42 Slides for Agency Use (Type Topic here)  Agency Specific Key Terms and Concepts (Arial Font 24) Term / ConceptDefinition Term / Concept name (Arial Font 18) Definition of Term / Concept (Arial Font 16)