Journal Entry and Budget Transfers Overview

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Journal Entry and Budget Transfers Overview
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Agenda

• Overview
• Key Financial Management Principles
• Working with Journal Entries
• Processing Budget Transfers
• Getting Help

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Transactions in PeopleSoft
Transactions that were traditionally thought of
as Journal Entries may be grouped into two
broad categories
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Key Financial Management Principles

• Budget transfers move budget dollars between
  chart strings
• Budget transfers may not move budget dollars
  across funds
• Actuals journals move actual expense (or revenue)
  between chart strings
• To the extent possible, correction of actuals
  entries should take place in the source system
• For audit purposes, trace to documentation is
  preferred method

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Working with Journal Entries
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Budget Transfers

• Process Flows
• Setup Steps
• Terminology
• Walk-through Examples
• Handling Common Errors

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Budget Transfers

• Process Flows

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Four Types of Budget Transfers

• Revisions
• Cost-Sharing
• Internal Grants / Incentives
• Base Revisions

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Budget Transfers - Revisions

• Current year budget transfers within a unit or
  between units
• Can be of any dollar amount
• Includes reallocation of re-appropriation dollars
• Will be the type of transaction used to spread
  Bullseye-created budgets among more chart field
  strings
• Note Information regarding new chart string
  combinations may need to be shared with units
  that generate internal charges.

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Budget Transfer Approvals Revisions
Dept Policy dictates detailed information.
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Cost-sharing Budget Transfers

• Cost Sharing represents the portion of a
  sponsored projects total cost that is paid by
  the university.
• Cost Share dollars are identified by specific
  source and function values.

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Sources and Function to Use When Moving Dollars
from General Operating Departmental Budget to
Cost-Share
From
To
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Budget Transfer Approvals Cost-Sharing
OSP receives new award
OSP notifies GCA that new award has been received
GCA sets up project and associated Cost-Share
budget in Projects Module
GCA notifies unit of new project id
OSP notifies unit (PI and Bus Mgr) that new award
has been received
YES
Unit enters the budget transfer data and saves
the transaction
The budget transfer is posted and updated in
General Ledger.
Unit notifies GCA that transfer has been
completed.
Does preparer have security rights to post?
NO
User selects NOTIFY button
Dept Policy dictates detailed information.
Template Opens Recipient dependent on
departmental procedure
YES
Email launched / Budget Transfer reviewed
Entry approved?
NO
Journal entry and review notes are sent back to
preparer
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Internal Grant / Incentive Budget Transfers

• Transfers cover a variety of situations,
  including Faculty Research Grants, CUPS program,
  Instructional Incentive Grants
• Initiated by the Department Managing the Funds
• Low Volume, but Many Lines

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Budget Transfer Approvals Internal Grant /
Incentives
Department managing the funds enters the data for
the transfer on-line and saves the entry.
Managing department selects NOTIFY button
Template Opens Recipient should be unit
receiving the funds
Does Unit Approve?
Unit completes Revision steps
Receiving department selects NOTIFY button to
alert sending department of issues
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Base-Revision Budget Transfers

• Transfers involving the movement of base general
  fund dollars from one unit to another for future
  years.

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Budget Transfer Approvals Base Revisions
Unit sending budget dollars enters the data for
the budget transfer and saves.
The budget transfer is posted and updated in
General Ledger
User MUST use the NOTIFY button to send
approval request to Dean/Director
Request Approved?
Budget Transfer and review notes sent back to
Dean / Director
Dean/Director reviews request
Dean/Director MUST use the NOTIFY button to
send approval request to FAB
Request Approved?
FAB reviews request
Budget Transfer and review notes sent back to
preparer
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Budget Transfers

• Setup Steps

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Budget Transfers Setup Steps

• Determine Chart String Want to Transfer From
• Determine Chart String Want to Transfer To
• No Chart String Create Process
• Review Plans with Unit Business Manager
• Verify that All Needed Chart Field Values Exist
• If New Chart Field Values are Needed, Or
  Questions Remain, Work with Analyst in FAB

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Example

• Have budget dollars in

• Want budget dollars in a string with a purpose
  code for a special seminar
• Check with business manager
• Check to see if such a purpose code exists
• Would a generic value work? Or is something new
  needed?
• If new values needed, work with FAB analyst
• Process a transfer to new string

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Cost-Sharing Example

• Have budget dollars in departmental string

• Want budget dollars set up for cost-sharing
• Review OSP notification for specifics
• Process a transfer to new string

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Budget Transfers

• Terminology

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Budget Transfers Terminology

• Ledger Group
• For operating budgets, two choices
• OPS_CH (for expense)
• OPREV (for revenue)
• For projects, other options apply
• Budget Transfer Types
• Transfer Adjustment for most transfers
• Transfer Original for base revisions

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Budget Transfers Rules to Remember

• When is a zero budget needed?
• What PeopleSoft accounts should be used?

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Budget Transfers

• Examples

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Budget Transfers - Example
Navigation Main Menu gt Commitment Control gt
Budget Journals Select Enter Budget Transfer
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At the introductory screen, type UVM01 in the
Business Unit, enter the date you want the
transfer to take effect and click Add
Always UVM01
Let PeopleSoft assign the Journal ID
Date transfer takes effect
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Budget Header screen appears for date you
specified
Begin by clicking the magnifying glass next to
Ledger Group
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Click on the appropriate ledger group (Refer to
definitions if necessary)
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Next, select the appropriate Budget Entry Type
from the drop down.
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For the OPS_CH ledger group, you need to select
an entry type for the parent. Make sure both
entry types are the same.
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Enter a description and then click the Budget
Lines tab
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Enter the chart string you want to take dollars
from. Note the minus sign.
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Press the sign to get the row that will be
the recipient of the dollars. By default, the
second line will be an exact copy of the first.
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Change the chart fields for the second string and
reverse the sign on the dollars.
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Verify that Debits Credits and then press Save
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If you are authorized to enter budget transfers,
but not to post, you will see an Error status
when you save. This is ok. Your transfer is
still saved.
Press the Notify button to send email to your
approver.
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An email template will come up
Put your approvers email address in the To
block.
You may also add a subject line and your own
message.
PeopleSoft adds the link information that your
approver will need.
Click OK to send
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The approver will receive an email something like
this
Clicking on the link will bring up the PeopleSoft
log-in page.
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If the approver is not authorized to post the
transfer, he or she should press the Notify
button and repeat that process.
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If the approver is authorized to post the
transfer, he or she should make sure Post
Journal is selected in the Process drop-down box
and then press the Process button.
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A verification screen will come up press Yes
Youll see a flashing Processing message in the
upper right hand corner for a few moments
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When the process is finished, the budget status
will change to Posted. You may then use other
navigation to leave this screen. Your budget
transfer is complete.
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Budget Transfers

• Handling Common Errors

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Invalid Chart Field Value
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Missing Data from the Budget Header Tab
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Required Chart Fields Left Blank
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Message is repeated on Budget Errors tab
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Budget Checking Warnings
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To find the budget issues, navigate to Commitment
Control gt Review Budget Check Exceptions gt Budget
Exceptions
Fill in at least the top two search fields using
more will make it easier to find your work.
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When your search results return, click on one of
the rows that you were using in your transfer
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Youll go to a page showing the details of the
error, along with links returning you to your
work.
Link that will take you backward to your work
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More Detail on the Error
Link to actual budget transfer
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Summary of Steps

• Determine type of transfer (Revision, Cost Share,
  etc.)
• Identify appropriate approval path
• Decide on chart strings to use
• Process transfer according to flow required for
  each transfer type

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Journal Entries / Budget Transfers

• Getting Help

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Getting Help

• Online Job Aids and UPKs
• Open Labs
• (Week of July 5th and each subsequent week in
  July)
• Business Manager
• FAB Analyst