Kent State University Intro to Banner Finance

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Kent State UniversityIntro to Banner Finance
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• Welcome!
• Introduction of instructors and participants
• Explanation of instructor roles
• Format of material
• Lecture
• Hands on
• Lecture with hands on
• The PowerPoint presentation and all handouts are
  available on the BAS website (www.kent.edu/bas).

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Intro to Banner Finance

• The training consists of four sections
• Chart of Accounts
• IDC Journal Entries
• Operating Query Forms
• Accounts Payable Query Forms

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• Housekeeping
• Attendance Sheet
• Restrooms Water Fountains
• Break
• Questions during the training session
• Any questions before we get started?

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Kent State UniversityChart of Accounts
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• Agenda
• Session Objectives
• Explanation of a Chart of Accounts
• Ledger Structure
• The FOAPAL String
• Fund, Organization, Account, Program, Activity,
  Location
• The Index chartfield
• How to get information about Banner accounting
  codes
• Review

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Session Objectives

• To understand the basic components of the Banner
  chart of accounts
• To understand what the Banner Index field does
• To be familiar with the FRS to Banner Crosswalk
  tool
• To be familiar with the Banner - Crosswalk - FRS
  Subcodes to Banner Accounts - Excel Listing

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The Chart of Accounts

• Is used to record day to day financial
  transactions and maintain financial account
  balances.
• Provides a systematic yet flexible structure to
  identify activities and record the related
  financial and budget transactions
• Must support all financial reporting needs and
  financial statements for management and external
  readers.

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Banners Ledger Structure

• Banner contains 4 ledgers for recording the
  universitys financial transactions.
• GENERAL LEDGER
• Displays beginning and current balance sheet
  accounts assets, liabilities
• Displays summary revenue, expenditure, transfer,
  encumbrance and budget totals for the current
  fiscal year
• OPERATING LEDGER
• Tracks revenue, expense and transfer transactions
  from July 1 to June 30, the universitys fiscal
  year. Activity balances start at 0 on July 1 of
  each year, so the university is able to keep
  track of how much is received or spent during the
  fiscal year.
• GRANT LEDGER
• Tracks accumulations from a beginning date until
  an ending date. Project indexes also begin at 0,
  however, these indexes accumulate to the end of
  the project period (which can span more than one
  fiscal year) so the total project amounts can be
  identified.
• ENCUMBRANCE LEDGER
• Tracks funds set aside for future commitments
  such paying employee salaries or paying vendors
  for the purchase of goods or services on purchase
  orders.

This Intro to Banner Finance Training material
will be focused on the OPERATING LEDGER, where
department revenue and expense transactions are
recorded.
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The FOAPAL String and Kent State Universitys
Chart of Accounts

• Kent State Universitys financial system is
  Banner Finance.
• Banner's Chart of Accounts structure is referred
  to as FOAPAL.
• Each of the letters in FOAPAL represents a
  different chartfield
• Fund-Organization-Account-Program-Activity-Locatio
  n.
• These chartfields separate the unique aspects of
  each transaction into relational segments for
  summarization and reporting.

.                                              
                                                 
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Chart of Accounts
Fund
Org
Account
Program
Activity
Location
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Chart of Accounts
Required for Operating Ledger Transactions
Fund
Org
Account
Program
Activity
Location
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Chart of Accounts
Required for Operating Ledger Transactions
Not Currently Used
Fund
Org
Account
Program
Activity
Location
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When an index value is entered for an operating
ledger transaction in Banner, the Fund, Org and
Program fields will be populated with the
required values!
Chart of Accounts
Index
Required for Operating Ledger Transactions
Not Currently Used
Account
Program
Location
Fund
Org
Activity
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Where did the money come from?
Fund
Who does the money belong to?
Org
Account
What is the money being used for?
How is the money reported?
Program
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Required Fund

• Is a six-digit value that answers the question
  Where did the money come from?
• Is different for each grant.
• Keeps track of resources whose use may be limited
  by donors, granting agencies, governing boards or
  other individuals or entities.
• Identifies types of funding (such as EG,
  Designated or Auxiliary) and may be further
  classified as
• Unrestricted
• Temporarily Restricted
• Permanently Restricted

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Required Organization

• Is a six-digit value that answers the question
  Who does the money belong to?
• Tracks the financial activities by functional
  reporting units.
• Classifies data by university departments or
  budget units and reporting structure in the
  organization chart and supports financial
  reporting by organizational unit

Org Code Legend 100000 Kent Campus 200000 Asht
abula Campus 300000 East Liverpool
Campus 400000 Geauga Campus 500000 Salem
Campus 600000 Stark Campus 700000 Trumbull
Campus 800000 Tuscarawas Campus
Note Roll up reporting will be covered in the
Advanced Banner Finance Training!
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Required Program

• Is a four-digit value that answers the question
  How is the money reported?
• Identifies the NACUBO (Natl Association of
  College University Business Officers)
  classifications and is used to generate the
  financial reporting of expenses by program needed
  for the Universitys Statement of Activities.
• Provides the greatest comparability of
  information across institutions

Program Code Legend U1 Undefined R1 Revenue 1100
Instructional Departmental Research 2100 Separat
ely Budgeted Research 3101 Public
Services 4100 Academic Support 5100 Student
Services 6100 Institutional Support 7100 Operation
Maintenance of Plant 8100 Scholarships
Fellowships 9100 Auxiliaries
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Index

• The index number
• Is a six-digit value. It is the same six-digit
  number previously used as the FRS department
  account number.
• Is used to record revenues, expenses and
  transfers in the operating, grant and encumbrance
  ledgers
• Is linked to a fund, organization and program
  which are required elements of the Chart of
  Accounts and ensures that the correct fund,
  organization and program are used in each
  accounting transaction
• Eliminates the need to enter the fund, org
  program field values when transactions are
  processed in Banner

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Required Account

• Is a five-digit value that answers the question
  What is the money being used for? (like the FRS
  subcode did)
• Collects data by natural expense classification
  such as salaries wages, benefits, supplies,
  etc.
• Is NOT attached to an index value (like the fund,
  org, and program are)
• Is used with an Index value when recording
  activity on the Operating Ledger

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Required Account
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Required Account
Banner account values are available from two
online resources

• The FRS to Banner Crosswalk tool on the KSU
  Comptroller web site
• The Banner - Crosswalk - FRS Subcodes to Banner
  Accounts - Excel Listing on the BAS Departments
  Business and Finance Guidelines, Policies and
  Procedures Web Site

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Refer to this handout for the exercises on the
following slides
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Resource 1 The FRS to Banner Crosswalk tool

• http//finacctlookup.uis.kent.edu

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The crosswalk tool can be used to view all Banner
Accounts. To see all Banner accounts, enter the
wildcard value in the first data entry block of
the Crosswalk tool, as shown below
1. Enter as the Banner Account
2. Press the Submit Lookup button.

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The screen will be updated to provide a listing
of all valid Banner account code values.
Use the scroll bar to view additional Banner
accounts.

Hit the Back button to return to the entry form.
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The crosswalk tool can be used to view a subset
of Banner Accounts. For example, to see all
Banner accounts for other expenditures (non-labor
expense), enter 7 as shown below
1. Enter 7 as the Banner Account
2. Press the Submit Lookup button.

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The screen will be updated to provide a listing
of all valid Banner account code values that
start with a 7 (expenditures).
Use the scroll bar to view additional Banner
accounts.

Hit the Back button to return to the entry form.
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The Crosswalk tool will also provide a user with
the Banner fund, organization and program values
for a department index.
1. Enter Banner index (for example 100101) here
2. Press the Submit Lookup button.

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The screen will be updated to display the Banner
fund, organization and program values associated
with the index that was entered.
NOTE The fund, org and program values provided
by the Crosswalk tool are required inputs to run
month end financial reports from the FlashLine
portal.

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The FRS to Banner Crosswalk Tool index
information will be refreshed on Wednesday night
each week for new indexes that are created.
Users seeking Fund, Org and Program information
about a brand new index should note that it may
not be immediately available in the FRS to Banner
Crosswalk Tool, but will be included in the next
update.
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Resource 2 The Banner - Crosswalk - FRS
Subcodes to Banner Accounts - Excel Listing

• Go to the BAS Web site http//www.kent.edu/bas/

• Select the Business and Finance Guidelines,
  Policies and Procedures link from the Main Topics
  section on the left side of the screen

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Resource 2 The Banner - Crosswalk - FRS
Subcodes to Banner Accounts - Excel Listing

• Select the link titled
• Banner - Crosswalk - FRS Subcodes to Banner
  Accounts - Excel Listing
• from the list of documents

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The Banner - Crosswalk - FRS Subcodes to Banner
Accounts - Excel Listing will open
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To search for a specific word, Go to the Edit
menu at the top, select the Find option
Enter the word you want to find in the Find what
box that appears and hit enter. Lets search for
the word subscriptions
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Banner account 73404 is used for subscriptions.
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Note The Banner - Crosswalk - FRS Subcodes to
Banner Accounts - Excel Listing contains the same
information on 3 tabs. On the first tab, the
information is sorted by FRS subcode, on the
second tab it is sorted by Banner account and on
the third tab it is sorted alphabetically by
description.
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Lets review!
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• Two Key Takeaways!!
• Banner Finance requires users to provide the
  following information to process operating ledger
  transactions
• A six digit Banner index
• A five digit Banner account
• If the account information is not know, user
  can access the crosswalk tool or the Excel file
  on the BAS website.
• Banner cross references the index value provided
  by the user and then populates the fund, org and
  program fields with the correct values to
  properly classify the transactions for financial
  reporting.

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• Topics Covered Today
• Explained what a Chart of Accounts is
• The FOAPAL String
• Used two online resources to get information
  about a Banner accounting code values

Index
Account
Fund
Org
Program
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Questions?
???