Kuali Financial Systems

General Ledger Overview

Damon Dorsey, Indiana University

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

Kuali Accounting Cycle Diagram

Accounting Cycle Continued

Accounting Cycle Components

Sufficient Funds Checking(Optional) Calculates an available amount and prevents document approval in the event of insufficient funds (budget - actual expenses - outstanding encumbrances - pending entries.)

Scrubber

Performs the following major functions:

Validation of Data• References 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

Accounting Cycle Components

Scrubber continued . . . Error handling

• Most common source for error files for input into the GLCP e-doc (in conjunction with De-Merge process.)

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.

Accounting Cycle Components Continued

GL PosterThree instances of the poster:

• Primary poster for the scrubbed transactions

• Automated reversal process

• Indirect Cost Recovery (ICR)

Performs Limited validation of data (amount, account number, object type, balance type, fiscal year, chart, debit/credit indicator, & reversal date)

Initial determination of expenses eligible for ICR

• GL Expense Transactions (GLEX) temporary table

Accounting Cycle Components Continued

GL Poster continued . . .Updates and inserts to GL tables:

• GL Detail (GLEN)

• GL Balance (GLBL)

• Account Balance (ACBL)

• Sufficient Funds (SFBL)

• Open Encumbrances (GLEC)

• GL Reversals (GLRV)

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.

GL Correction Process (GLCP)

• Restricted e-doc for use by central back office staff.

• Used to upload files directly for GL processing.

• Can also select and edit existing files (such as error files from the scrubber process).

• Allows simple mass-edits of files using criteria (similar to a find/replace) or manual edit of files.

Functionality and Chart Set-Up

• Attributes of Account NumbersSufficient 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 NumbersIdentifies cost share sub accounts and the source accounting string for cost

share transfers and cost share encumbrance processing

• Attributes of OrganizationsIdentify the plant fund account numbers for capitalization and plant

indebtedness

• Offset Definition Reference TableDetermines the appropriate offset in the event a balancing transaction is

needed

• Many other examples for other GL fields and reference tables…

Additonal Functions - Turn On/Off

• Flexible Offsets – Each implementing institution can determine if offsets (cash, accounts

payable, salaries payable, etc…) should post to the same account as the original transaction or to another defined accounting string.

• Bank Specific Claim on Cash (Release 3.0) – Associates receipts and disbursements with a specific bank account.

– 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 a bank reference table.

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 – Include all pending ledger entries, approved pending ledger entries, or exclude pending entries from the results.

• Consolidation/Detail Option –Accumulate results by Sub-Account, Sub-Object Code, and Object Type.

• Export Functions – Results may be downloaded in CSV, Excel, or XML formats.

• Sort-able Results – Output may be sorted in ascending or descending order by clicking on the appropriate columns.

On-Line Balance Inquiries – (Cont.)

Balance Inquiry Screens

• Available Balances

• Balances by Consolidation

• Cash Balances

• General Ledger Balances

• General Ledger Entry

• Pending General Ledger Entry

• Open Encumbrances

Year-End Processing

Year-End E-docs

• Activation of year-end documents for posting to fiscal period 13

• Year-end documents post to the prior fiscal year.

• Year-End versions of the: • Budget Adjustment• Distribution of Income/Expense• General Error Correction• Transfer of Funds• Salary Transfer• Benefit Expense Transfer

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).

Year-End Processing Continued

Other Processes

• 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

Questions?