Introduction to University AccountingBTFA01

The Florida State University Controller’s Office & University Business Administrators Present:

Class Objectives

• OMNI – Gain an understanding of what OMNI is and how it relates to the fiscal operations at FSU.

• Chartfields – Define chartfields and discuss what purpose they serve when it comes to financials.

• Ledgers – Define ledgers and discuss what they are used for at FSU

• Journal Entries – General definition of journal entries and how they are performed at FSU.

• Resources - Where to find university related financial information.

What is OMNI?

• Online Management of Networked Information

• Enterprise Resource Planning (ERP) system implemented to best meet FSU’s financial & human resources administration needs.

• Implemented in 2004 to replace FLAIR

• Developed using PeopleSoft software, a product of Oracle Corporation

myFSU Portal Page

myFSU Portal Page• Financials

• Focus of this class• Stores all financial information of the University, including areas

such as budget, general ledger, procurement services, inventory and reporting tools

• Human Resources – Used for Time Entry, benefits information, training signup, job applications, etc.

• myFSU BI– Covered extensively in the BTFA02 Financial Reporting Tools class

• OMNI e-Market – OMNI online shopping module maintained by Procurement Services

• FSU Service Center – All Help “tickets” (or “Cases”) maintained here• Employee Central – Offers quick access to widely used OMNI modules

as well as training materials and key websites• E-ORR – Online Role Requests – Interface used to request/approve

OMNI and other systems access• Listed under Student Central

OMNI Financial Modules

• OMNI is a “modular application”• A software or application framework that supports

multiple modules• Module – A self-contained, separate but smaller

component• SOME examples of OMNI Modules:

• Accounts Payable• Procurement Services• Travel• Commitment Control (Budget)

ChartFields• ChartField - A means of breaking down accounting transactions within

the system in order to organize and report on the data contained in OMNI.

• Which three ChartFields are required for ALL transactions in OMNI?• Department ID• Fund Code• Account

• Project ID is also a REQUIRED chartfield for Sponsored Research (C&G) projects and construction activity.

• Navigate to: Financials 9.1>Set Up Financials/Supply Chain>Common Definitions>Design Chartfields>Define Values>Chartfield Values

ChartFieldsDepartment ID

• Area of financial management at FSU• Field is 6 digits

• First three digits refer to an academic, administrative, or other major area.

• Last three digits refer to cost center with the area.

007 010

• Specific department information or a complete listing of FSU departments can be obtained by running the FSU_DPT_CODES_DEPTID query.

Athletics Football

ChartFieldsFund Code

• A fund identifies the source of monies that are used in a transaction

• Each fund may have different restrictions on its use• Often funds have different reporting requirements• Fund Code in OMNI is a three digit numerical code created by

central University management• Major FSU Funds:

• Education & General (E&G)• Fund 110• Current fiscal year appropriations from the State of Florida• Cash is maintained centrally by Budget Office, so cash balance in E&G

departments will always be negative• Carry Forward

• Fund 140• Prior fiscal year(s) E&G funds

ChartFieldsFund Code

• Major FSU Funds (cont.):• Auxiliary

• Fund 320 (generally)• Revenue generating business-type activities• Operate on a cash basis (spending is controlled based on their cash

not budget)• Sponsored Research (aka Contracts & Grants or C&G)

• Fund 5xx (excluding 510)• Grants and other research-related monies provided by government or

private entities

• Other commonly used funds include the Medical School (210/240), Construction (8xx) and Athletics (630)

• Specific fund information or a complete listing of University funds can be obtained by running the FSU_DPT_CODES_FUND query

ChartFieldsAccount

• Used to record, summarize, and/or categorize financial transactions as assets, liabilities, equity (fund balance), revenues, or expenses

• Two types of Accounts

• BUDGETARY—record budget

• NON-BUDGETARY—categorize transactions

Primary Budgetary Accounts Description

710000 Budget Salary and Wages

720000 Budget OPS

740000 Budget Expense

760000 Budget OCO

Sample Non-Budgetary Accounts Description

710115 Summer Faculty

720111 Graduate Assistants

740501 In-State Travel

760101 Book OCO

ChartFieldsAccount

• The first digit is used to identify the type of account

• FSU_DPT_CODES_ACCOUNT• Expense Account Short List

ChartFieldsOptional ChartFields

• Allow departments to track expenses at a more detailed or customized level.

• Three available (NOT hierarchical)• CHARTFIELD 1• CHARTFIELD 2• CHARTFIELD 3

• Using optional chartfields consistently is key• Examples of current use: tracking spending by professor,

course number, theater production• See the General Accounting FAQ for more information:

ChartFields Summary

Business Unit & Set ID

• Business Units:• Operational divisions of FSU• Used in transactions and research• FSU has one primary Business Unit – FSU01*

• A Set ID allows different business units to segregate or share information.• Used when creating chartfields or inquiring in OMNI• FSU’s standard Set ID is SHARE*

• In OMNI, both Business Unit and Set ID MUST be identified

* Some exceptions apply

Fiscal Year & Accounting Period

• The fiscal year for FSU is a twelve month period beginning July 1 and ending June 30

• Fiscal months are referred to as periods

Fiscal Year

Acct Period

Calendar Month

2013 1 July 20122013 2 Aug 20122013 3 Sept 20122013 4 Oct 20122013 5 Nov 20122013 6 Dec 20122013 7 Jan 20132013 8 Feb 20132013 9 Mar 20132013 10 April 20132013 11 May 20132013 12 June 20132014 1 July 2013

Ledgers

• A ledger is a set of books that stores budgeting and/or accounting transactions.• Detailed information is usually stored in smaller

(subsidiary) ledgers• Subsidiary ledgers are often summarized and

permanently recorded (posted) to one primary ledger called the GENERAL LEDGER (GL)

• FSU has two main types of ledgers:• Actuals• Commitment Control

Actuals Ledgers

• Contains actual (non-budgetary) financial information• Used to monitor account activity by a particular

department, unit, school, etc.• Starting point for the preparation of the University’s

Financial Statements and other compliance required reporting

Commitment Control (“KK”) Ledgers

• THE BUDGET• Provides a mechanism for controlling expenditures against

a pre-defined spending limit, by budgetary account• Can check requisitions, purchase orders and other types of

transactions, identify exceptions and give appropriate notification to help monitor available budget balances for both project (C&G/Construction) and non-project transactions.

• Budgetary accounts are sometimes referred to as “header accounts”

• Budget and Analysis Office

• Non-Project• Revenue Budgets (Auxiliary only)

• Expense Budgets (All types)

Budget CC_REV_BUD Recognized Revenue CC_REV_REC Collected Revenue CC_REV_COL

CC_REV_GRP Group

Budget CC_BUD Encumbrance CC_ENC Expense CC_EXP

CC_EXP_GRP Group

Commitment Control Ledgers

Project (Sponsored Research)

• KKGMPAR – Parent

• KKGMCHD - Child

KK = Commitment Control

GM = Grants Management

PAR = Parent

CHD = Child

Budget KKGMPARBUD Encumbrance KKGMPARENC Expense KKGMPAREXP

KKGMPAR Group

Budget KKGMCHDBUD Encumbrance KKGMCHDENC Expense KKGMCHDEXP

KKGMCHD Group

Commitment Control Ledgers

Commitment Control Ledgers

Q: What does every ‘budget manager’ want to know…all the time?

A: How much money do I have left to spend?

Commitment Control

Navigation: Budget Details

• Commitment Control > Review Budget Activities > Budget Details

Example:

• Ledger group: CC_EXP_GRP

• Account: 740000 (can leave this blank to receive a search result with all budgetary accounts)

• Department: 001000

• Fund: 110

• Budget Period: 2013 (only search current Fiscal Year as previous years will have inaccurate balances)

Commitment Control

Navigation: Budgets Overview

• Commitment Control > Review Budget Activities > Budgets Overview

Example:

• Inquiry name: Type in your name

• Description: Expense account code balances

• Ledger group: CC_EXP_GRP

• Type of Calendar: Detail budget period

• From budget period: 2013

• To budget period: 2013

• Account: %

• Department: 001000

• Fund: 110

Commitment Control

SAVE, then SEARCH

Navigation: Budgets Overview

• Commitment Control > Review Budget Activities > Budgets Overview

Example:

• Inquiry name: Type in your name

• Description: C&G budget

• Ledger group: KKGMCHD

• Type of Calendar: Detail budget period

• From budget period: MULTI

• To budget period: MULTI

• Project: 000049

Commitment Control

SAVE, then SEARCH

Journal Entries

• Journal Entries (JEs) record accounting transactions and MUST be in balance (Debits = Credits)

• Information is input into FSU’s ledger by posting JEs from:• OMNI modules (subsidiary ledgers) like Accounts Payable or

Asset Management• Third party systems

• Systems other than PeopleSoft-based systems• E.g. Student Financial Services, Facilities, Telecommunications

• Directly keyed (online) journals

• Each Journal Entry in OMNI is assigned a unique Journal ID

• Journal IDs• Ten Characters• Some have an alpha prefix used to help identify the purpose

of the JE

Journal Entry Examples

Accounting Concepts for JournalsDebits and Credits vs. Account Types

Account          Type Debit    Credit

   

Assets (1 or 2xxxxx)           Increases          Decreases

Liabilities (3 or 4xxxxx)         Decreases         Increases

Income (Revenue) (6xxxxx)     Decreases         Increases

Expenses (7xxxxx)          Increases          Decreases  INCREASE DECREASE   INCREASE DECREASE

DEBIT ASSET LIABILITY DEBIT EXPENSE REVENUE

CREDIT LIABILITY ASSET CREDIT REVENUE EXPENSE

Basics of Journal Entries

Purchase of office supplies from a vendor:

Step 1: Record the purchase (invoice posting):

Debit - Expense (Office Supplies) 741101 $1,000

Credit - Accounts Payable 311000 -$1,000

Step 2: Record the payment (cut check):

Debit - Accounts Payable 311000 $1,000 Credit - Cash 112000 -$1,000

Basics of Journal Entries

Revenue Deposited with University Cashier

Debit – Cash 112000 $1,000Credit – Revenue 6XXXXX -$1,000

Resources

• Controller’s Office website - http://controller.vpfa.fsu.edu/ • Forms• Frequently Asked Questions• Departmental Business Management Guide• Expense Account Lists• Departmental Query Listing

• OMNI Training website - http://omni.training.fsu.edu/ • Developed by ERP as a “one stop shop” for training

resources• Includes online tutorials and job aids on a wide variety of

topics

Resources

• Other central office websites• Budget Office• Human Resources• Procurement Services• Sponsored Research

Resources

• Recommended Listservs• University email subscriptions• Useful listservs:

• FinRep• OMNI-Financials• Fsupcard• Fsutravel• Accounts_payable

Contact Information• Lauren Barrett– Quality Assurance

• lmbarrett@fsu.edu• 645-8611

• Paul Harlacher – University Business Administrators• pharlacher@admin.fsu.edu • 644-6972

• Slides available at: http://controller.vpfa.fsu.edu/Training-Job-Aids