Kd7-KFS Basics General Ledger

8/8/2019 Kd7-KFS Basics General Ledger

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Kuali Financial Systems

General Ledger Overview

Damon Dorsey, Indiana University


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Agenda Topics

Overview of the accounting cycle from e-doccreation 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


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KualiAccounting Cycle Diagram


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Accounting Cycle Continued


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Accounting Cycle Components

Sufficient Funds Checking(Optional) Calculates an available amount and prevents documentapproval 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


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Accounting Cycle Components

Scrubber continued . . .Error handling

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

De-Merge ProcessPulls all of the transactions for a document that the scrubber found to haveerrors and backs out any scrubber generated offsets.


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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


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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)


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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) tableuntil the reversal date is reached, at which time a reversing entry is createdand 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 andrevenue 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 referencetables to derive an amount.


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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 filesfrom the scrubber process).

Allows simple mass-edits of files using criteria (similar to a

find/replace) or manual edit of files.


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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 IDs, exclusions, and revenue accounts for

Indirect Cost Recovery (ICR) calculations Attributes ofSub-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


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AdditonalFunctions - Turn On/Off

Flexible Offsets

Each implementing institution can determine if offsets (cash, accountspayable, salaries payable, etc) should post to the same account as theoriginal 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 generatedwhich 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 viaa bank reference table.


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On-Line Balance Inquiries

Common Inquiry Features

Drill Down Capability Users can drill down from balances to detail transactionsand 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-ObjectCode, 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 byclicking on the appropriate columns.


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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


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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


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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).


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Year-End Processing Continued

Other Processes

Snapshots of Account and Organization tables for year-end reporting

Generation of Business Manager Reports As determined by institutionsclosing calendar

Generation of Monthly Standard Reports for First and Final Closing


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Questions?

Kd7-KFS Basics General Ledger

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