1. General Ledger Training State of Indiana

2. 2 Instructor  Theresa Anderson IOT GMIS

3. 3 Agenda Welcome and Introductions General Ledger Overview Chartfields Journal Processing Inter/Intra Unit Accounting Other Journal Features

4. 4 ENCOMPASS Documentatio n The ENCOMPASS website contains useful information and is located at: http://myshare.in.gov/sba/encompass/default. aspx http://myshare.in.gov/sba/encompass/default. aspx –Accounting Manual –Year-End Cleanup Instructions –Chart of Accounts –Internal Controls –Training Documents –And much more

5. 5 Overview of General Ledger General Ledger supports multiple functions –Budgeting –Allocations –Financial Reporting Interacts with other ENCOMPASS Modules –Asset Management –Accounts Payable –Accounts Receivable –Budgets

6. 6 Ledgers Core Expense and Revenue Budget Ledgers –APPROP, ALLOT_CTRL and ALLOT –APPROP_REV, ALLT_C_REV and ALLOT_REV Project Ledgers (KK_PROJECT and KK_ACTIVTY) ORG (Departmental) Ledgers (ORG and ORGDTL) DETAIL Ledger ACTUALS Some BUs only use the core ledgers, and others may use core plus a combination of other ledgers if they receive Federal money and/or want to budget by Departments.

7. 7 Ledgers Store the posted net period activity for an accounting period and fiscal year. –Maintained through journal entries. Entries may have a journal mask to identify the type of entry and from what sub-module it is generated from. –Manual, Sub-System, Spreadsheet upload, Flat File, All business unit ledger data is stored on the same table.

8. 8 General Ledger Setup The General Ledger has multiple tables that require setup before transactions can be processed. –SetID and/or Business Units (BU) –Chartfields Fund Code Account Department Program Project

9. 9 SetID Shares tables across all business units. Field length – 5 alphanumeric field Required for all Control tables. –Examples are: Vendor Tables Chartfields Customers The State’s SetID is STIND. All Business Units typically use a standard set of values provided under STIND. –Department ID is created at the Business Unit.

10. 10 Core Chartfields Business Unit Required for all transactions Field length – 5 numeric field Principal unit of financial accountability within State government. Assigned centrally and reflects financial responsibility. A single transaction can now be recorded against multiple Business Units - InterUnit

11. 11 Core Chartfields Fund Code Required for all transactions Field length – 5 numeric field Centrally Defined Fund Code replaces prior Fund/Center combination. Primary chartfield within a BU to track expenses and specific funding sources and uses of revenue or budget authority. A single transaction can now be recorded against multiple funds - IntraUnit

12. 12 Core Chartfields Fund Code cont’d… Fund Attributes –Legal Fund: (Generally Same as Four Digit Fund) –CAFR Fund: (Generally Same as Four Digit Fund) –Fund Type: (General, Special Revenue, Debt Service, etc.) –Funding Source (Federal, General Fund, State Dedicated, etc.) –Control Code: (Determines Budgeting & Closing Rules) –Function of Government (General Government, Public Safety, etc.) –Location Type (Locality Required on all Transactions: Yes or No) –Interest Income (Fund Retains Interest Income Earned: Yes or No)

13. 13 Core Chartfields Account Required for all transactions Previously defined as the Object Code Includes additional detail and eliminates generic values *Example: Previous “Object” 540100 Office Supplies Encompass “Account” 546002 Office Supplies Field length – 6 numeric field Centrally Defined- One set of chartfield values is used across all Business Units (GL_ACCOUNT_TBL) Used for classifying specific transactions and to achieve the objectives of proper financial reporting and budgetary control.

14. 14 Core Chartfields Account cont’d… The first digit represents the major reporting classification 1 = Assets 2 = Liabilities 3 = Fund Balance 4 = Revenues 5 = Expenditures 6 = Internal Service Fund Revenues “64” and Expenses “65” 7 = Other Financing Sources and Uses “74” and “75”

15. 15 Core Chartfields Program Code Required for all transactions Field length - 5 numeric field –1 st 3 digits – should correspond to a related PROBE classification. PROBE = Program Results: an Outcome-Based Evaluation (PROBE). –4 & 5 – are designated by the agency to capture programmatic information This chartfield will provide classification and reporting capabilities with more flexibility and greater detail.

16. 16 Core Chartfield Department Required for all transactions Represents an organizational function to which expenditures and other activities are classified. Centrally Defined by State Personnel Dept. Field length – 6 numeric field This field will correspond to departments within the HR module.

17. 17 Core Chartfield Department cont’d… Each department will be assigned an attribute: –Information Technology –Accounting / Finance –Human Resources –Administration –Marketing / Communications –Legal –Auditing –Purchasing –Legislative / Policy –None of the above

18. 18 Core Chartfield Budget Reference Required for all transactions Used to identify the specific fiscal year associated with a transaction. Field length – 4 numeric field

19. 19 Core Chartfield Project An accumulation of costs for a period of time. Field length – 15 alphanumeric field Required for specific circumstances –Federal Grants and Appropriations Received Passed through to sub-recipients within State government Passed through to sub-recipients outside of State government. –Any expense that results in the construction of a State capital asset Agencies have the option of using this chartfield if they need to track costs.

20. 20 Core Chartfield Project cont’d… Federal Project –Each state agency that receives a federal grant will have an individual Project that corresponds to each individual Grant Year award. Capital Project / Preventative Maintenance –Each state agency will have an individual project for each of their distinct Capital projects.

21. 21 Additional Project Chartfields ChartfieldUse Functional Activity (7 digits recommended) Agency defined. (Required for all projects). Activity entered at the time of the transaction. Federal budget requirements and/or lines on a federal report. Distributional Activity (7 digits recommended) Activity assigned after the Funds Distribution process. Utilized for Contract & Billing Module. Incorporated into INDOT Modification for Funds Distribution. Source Type (5 digit) Agency defined. (Optional) Available to support additional Agency Federal Reporting needs. Source Category (5 digit) Assigned during Funds Distribution. (Required) Auto-numbered. Corresponds to Funding Source ID in Commitment Control. Source Sub Category (5 digit) Assigned during Funds Distribution. (Optional) Agency Defined. Available to provide greater detail than Funding Source. Analysis Type (3 digit) Identifies the Type of Transaction on the Project Resource Table. Transactions will be processed differently in the Projects Module based upon their assigned Analysis Type. System Defined.

22. 22 Core Chartfield Locality Optional Field Identifies a geographic location or area Replaces the previous Class Chartfield Field length – 5 numeric field Centrally Defined with Agency coordination Agencies determine whether or not Locality Chartfield is required for transactions on Fund by Fund basis Locality will use codes currently in use for other state functions whenever possible

23. 23 Core Chartfield Product Used to track costs of good or services provided to other state agencies. Field length – 6 numeric field Centrally defined with agency input Will only be used by the State’s Internal Service Funds (i.e., IOT Revolving, Motor Pool Revolving, Aviation Revolving, and PEN Products) for their transactions with other state agencies.

24. 24 Core Chartfield Incident Transactional classification to track costs for a particular event or activity as determined by State officials. Field length – 6 numeric field Centrally Defined This chartfield is not required unless you are instructed to do so. Currently used in production *Example: Tornado, Flooding, etc…

25. 25 Any Questions???

26. 26 Journal Entries Types of Journals –Direct journal entry – Online journal entry entered by users manually –Spreadsheet upload – Excel spreadsheet used to upload journals into the database –Subsystem journals – created by other modules such as AP and AR –Feeder systems – External systems creating journals into the database

27. 27 Journal Entry Processing Processing –Edit journals to confirm correct chartfield combos and entry is balanced Credits to Debits –Budget checking for sufficient funding within a specific chartfield string –Workflow submission for required approvals Agency Fiscal Manager AOS Finance Approver –Posting Copy Journal Entries –Copies an existing entry which is changeable –The Copy Journal process with reversing signs is recommended since Unposting is no longer available

28. 28 Edit Process All journals must go through the Edit process. –Direct/spreadsheet journals are edited online –Feeder system entries are run in batch Reasons why journals wouldn’t pass Edit process: –Accounting period is not open –Debits do not equal Credits –Invalid chartfield combinations –Invalid chartfields All of these errors must be fixed before these entries can be approved/posted

29. 29 Approval Process After the journal has passed the edit and budget check processes, the journal will be submitted for approval. The Financial Controller of each agency will approve all journal entries Manual entries will require AOS approval –These entries depend on the type of journal and the chartfield combinations. The journal will not post until the last approver has approved the journal entry.

30. 30 Posting Process Once journals are approved, they are eligible to be posted. Runs through a Batch process. –Most users still have access to perform this directly on the journal entry Line page. Posting process: –Posts the lines of each journal to the appropriate ledgers and BUs –Changes the status of the entry from Valid to Posted

31. 31 Demo/Exercises

32. 32 Inter/Intra Unit Accounting InterUnit –Automates the process of accounting for related-party transactions that impact multiple business units concurrently. IntraUnit –Automates the process for transactions that involve more than one Fund or chartfield string within one Business Unit.

33. 33 Demo/Exercises

34. 34 Other Journal Features Copy Journals –Gives users the ability to copy journals including reversing signs. Journal upload –This feature is used to upload journal entries using a Microsoft Excel template and uploading the data directly into ENCOMPASS. Inquiries –Allows users to view data directly in the database. Queries/Reports –Queries can be run to the screen or Microsoft Excel –Reports generate a.PDF or.CSV file

35. 35 Demo/Exercises

36. 36 Encompass Support Submit a GMIS Issue –“Report an Issue” link on the Sign In page –“Report an Issue” link under the ENCOMPASS menu –Call 317-234-HELP to create a helpdesk ticket Encompass Website –https://myshare.in.gov/sba/encompass/default.aspxhttps://myshare.in.gov/sba/encompass/default.aspx –GL Training documents: ENCOMPASS > ENCOMPASS Documents > Training Documents > General Ledger

37. 37 Evaluations/Open Labs Course evaluation –Please be honest –Evaluations are used to adjust the class as necessary

38. 38 Any Questions???

39. 39