1. Kuali Days Conference May, 2008 General Ledger Processing Sterling George, Indiana University Joan Hagen, Indiana University

2. Agenda Topics Overview and components of the accounting cycle Accounting cycle edits, reports and error correction Collector processing Year-end schedule and balance forwards On-line GL balance inquiry screens

3. Kuali Accounting Cycle Diagram

4. 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, including flexible offsets 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)

5. 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

6. 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. 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). –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 Bank Specific Claim on Cash (Release 3.0) – When activated users can specify a bank cod 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. Indirect Cost Recovery (ICR) Encumbrances (Post Release 3.0) – 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.

7. Scrubber, Poster and GLCP in Relation to 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

8. Collector Processing

9. Year-End Schedule Pre-Closing –Thursday, June 5 - Generation of Business Manger Reports –Monday, June 30- Last day for billing and encumbrance transactions and take snapshots of Account and Organization tables for reporting First Closing –Tuesday, July 1 - Year-end documents available for posting to fiscal period 13 throughout closing process –Monday, July 7 - Cut-off for Fiscal 2008 AP invoices that were received and dated on or before June 30 –Tuesday, July 8 -CAMS processing of fiscal 2008 AP invoices and First Closing –Wednesday, July 9 - Generation of Business Manger and Monthly Standard Reports and run June Depreciation

10. Year-End Schedule Continued Second Closing –Tuesday, July 15 – Second Closing –Wednesday, July 16 - Generation of Business Manger Reports –Monday, July 21 – Auxiliary Vouchers for Fiscal 2008 fully approved Final Closing –Tuesday through Thursday, July 22 – 24 – Campus Closing Meetings –Friday, July 25 – Final Closing –Monday, July 28 – Generation of Final Business Manager Reports and Monthly Standard Reports –Tuesday, July 29 – Run July Depreciation –After Balance Forwards loaded flip indicator in Systems Options Table for Sufficient Funds Checking

11. Closing and Balance Forward Entries Each of the four year-end programs create Origin Entry Groups for pre-editing by GLCP and later processing by the accounting cycle. Monday, July 28 –Organization Reversions and Carry Forwards (Optional) – Driven by the GL Balance (GLBL) table and Organization Reversion reference tables. Computes budget and cash reversion and carry forward amounts based on a set of defined business rules. –Encumbrance Forwards – Selects from the Open Encumbrance File (GLEC). Sets up outstanding encumbrances for the new fiscal year. –Labor Balance Forwards – Selects from Labor Balance (LLBL) and creates inception to date balances for select groups of accounts. Tuesday, July 29 –Close Out of Nominal Activity – Based on the balances GL Balance (GLBL), this program closes all nominal activity (Income and Expenses) to Fund Balance in the year begin closed. Must run after Organization Reversions if that program is part of closing. Wednesday, July 30 –Beginning Balance Forwards – Carries forward GL Balances (GLBL) for Assets, Liabilities, and Fund Balance as Financial Beginning Balances and cumulative income, expenses and b and budget as inception to date balances. Must run after Closing Nominal Activity to accurately bring forward Fund Balance.

12. 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. On-Line Balance Inquiry Screens

13. Demonstrate On-Line Balance 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 – 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. 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.

14. Questions?