1. Kuali Financial Systems General Ledger Overview (May 2008) Joan Hagen, Indiana University Vincent Schimizzi, Michigan State University

2. 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

3. Kuali Accounting Cycle Diagram

4. Accounting Cycle Continued

5. 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

6. 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(14)REFERENCE DOCUMENT NUMBER FDOC_REVERSAL_DTDATEREVERSAL DATE TRN_ENCUM_UPDT_CDVARCHAR2(1)ENCUMBRANCE UPDATE CODE TRN_POST_DT DATEPOST DATE

7. 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

8. 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)

9. 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)

10. 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

11. 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

12. 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…

13. GL Correction Process (GLCP)

14. Additonal Functions - Turn On/Off Flexible Offsets (Delivered Functionality) – 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 (Release 3.0) – 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 (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. The intent is to provide a more complete view of an account’s position

15. 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 – Inquiry screens 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.

16. On-Line Balance Inquiries – (Cont.) 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. 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.

17. 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 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 – As determined by institution’s closing calendar Generation of Monthly Standard Reports for First and Final Closing

18. 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).

19. Questions?