Financial Transaction Adjustment Request (FTAR) Processing Guide

Transcription

1 Financial Transaction Adjustment Request (FTAR) Processing Guide

2 Introduction With training and departmental approval, a department user will be able to complete a Financial Transaction Adjustment Request (FTAR) and submit via to the Controller s Office. The purpose of this procedure is two fold: First, we will explain the new process and what needs to be considered when preparing an FTAR. Second, we will teach you step by step how to accomplish submission to the Controller s Office via . 1) Determine Necessity and Appropriateness Completing FTAR While most transactions can and should be handled through a subsidiary system (i.e. Payroll, Accounts Payable, Concur, etc.) a financial transaction adjustment to the General Ledger may become necessary under specific circumstances. For example, an adjustment may be necessary to correct an error or to allocate charges that could not be allocated in the subsidiary system. Necessity Before a journal entry is created, consider the following: Is this journal entry cost effective to process? Schools or colleges should consider the benefit of small dollar amount transfers between non sponsored sources of funds. These transactions may create an unnecessary administrative burden. However, small dollar amount journal entries may be necessary to clear the balance on a chartfield before it can be inactivated. Please contact your department s Business Manager or your Finance Representative if you have specific questions about whether a journal entry is necessary. Has the journal entry already been corrected? If the originating department noticed the error, they may have already corrected it. Appropriateness ALL transaction requests must be in compliance with the Guidelines for Budgeting and Financial Management of Current Operations. As we determine the appropriateness of transactions, it is important to recognize that we are always subject to external review. Each year a sampling of transactions are reviewed by our external auditors. The Controller s Office will work with departments to ensure that all adjustment requests conform to Generally Accepted Accounting Principles (GAAP.) 2) Gather Support Once an adjustment is deemed necessary, appropriate support must be gathered and available for necessary approvals and reviews. It is highly recommended that the support is imaged and attached to the submitting along with the request. All adjustment requests to sponsored programs, (13001 fund) must be coordinated through the SPO. No forms will be processed with funds unless submitted by SPO staff.

3 3) Complete Request Form a) Determine transaction request type (See also line instructions on following page): Correction of Expense or Revenue Transaction: Used to make corrections to expense or revenue transactions that have already been processed and are reflected on financial reports. Share Expense: Distribute expenses incurred (or revenue booked) to other departments per agreement Internal Sale of Goods or Services: Restricted to departments that have budget responsibility to generate revenue for a planned program, event, or service. Goods or services must be provided. Transfer Between Operating & Non Operating Funds (cash transfers): Used to transfer funds between Operating and Non Operating funds b) Complete FTAR form header: FY, Period, and Date FY: The Fiscal Year for which the adjustment request is being requested. Please note that no adjustments will be processed for a closed fiscal year. Please refer to Year End close schedule. Period: The Fiscal period for which the adjustment request is being requested. Please note that no adjustments will be processed for a closed month. Please refer to monthly close schedule. The Last day to submit adjustment request for a given month is the "chargeback" due date. Explanation of Periods: 1st Quarter: Period 1 = Jul, Period 2 = Aug, Period 3 = Sep 2nd Quarter: Period 4 = Oct, Period 5 = Nov, Period 6 = Dec 3rd Quarter: Period 7 = Jan, Period 8 = Feb, Period 9 = Mar 4th Quarter: Period 10 = Apr, Period 11 = May, Period 12 = Jun Date: Please enter the current date that the request is being submitted. Again, please note that no adjustments will be processed for a closed month. Please refer to monthly close schedule. The Last day to submit adjustment request for a given month is the "chargeback" due date. Preparer Info and Source Code Preparer: Enter extension or full phone number, name and valid PeopleSoft department ID of preparer. Department ID: A valid PeopleSoft department ID is required in order to complete your request. The department ID should be the department ID of the preparer. If the department ID is missing, the request will be returned. Source Code: The form will automatically fill in the correct source code based on the valid department ID. Source code purpose: The Source Code is a code (or grouping) associated with each Department ID. The source code is ALWAYS associated with the ORIGINATING department. It will serve to route the request to the appropriate Finance Representative for review and final posting to the PeopleSoft system. It will also be reported on the Actual Transaction Detail reports to help users identify the original source of financial adjustment.

4 c) Complete journal lines based on type of request Warning: Do not use the Drag and Drop or Cut and Paste feature of excel as it will change hidden formulas on the worksheet. Use copy and paste if you need to copy information from one cell to another. Correct Expense or Revenue Transaction Ba ck to Ma in Form PURPOSE: Make corrections to expense or revenue transactions that have already been processed and are reflected on financial reports DEBIT CREDIT Move Expense to a New Accounting Distribution (Account / Fund / Department / Program / Activity / Class) or Move Revenue from the Accounting Distribution from where it was originally booked in the financial system (Accounting distribution must be identical to original transaction). Requires Authorized Approver signoff by the Department debited / charged Move Expense from where it was originally booked in the financial system (Accounting distribution must be identical to original transaction) or Move Revenue to new Accounting Distribution Share Expense (or Revenue 1 ) Ba ck to Ma in Form PURPOSE: Distribute expenses incurred (or revenue booked) to other departments per agreement DEBIT Move Expense that has been booked to another Department per a cost sharing agreement or a billing agreement with them. Requires Authorized Approver signoff by the Department debited / charged CREDIT Move Expense from the Accounting Distribution from where it was originally booked in the financial system (Accounting distribution must be identical to original transaction) to another Department per a cost sharing agreement or a billing agreement Note: 1 For Revenue Sharing transactions please contact the Budget Office or the Controller's Office Internal Sale of Goods or Services Ba ck to Ma in Form PURPOSE: Restricted to departments that have budget responsibility to generate revenue for a planned program, event, or service. Goods or services must be provided DEBIT CREDIT Enter the departments that will be charged for the service. Department Budget Managers should be named as Authorized Approvers. Attach scans / s or other authorizing documents electronically with Journal submission. Internal Expense Accounts: Account 7494: Sales Expense-Internal Account 7495: Rental Expense-Internal Account 7496: Miscellaneous Expense-Internal Enter the departments that will be credited for providing the service Internal Income Accounts: Account 5894: Sales Income-Internal Account 5895: Rental Income-Internal Account 5896: Miscellaneous Income-Internal Transfer between Operating & Non-Operating funds 2 Ba ck to Ma in Form PURPOSE: Transfer funds between Operating and Non-Operating funds DEBIT CREDIT Identify the appropriate Accounting Distribution for the funds to be Transferred Out (Use of Funds / Expense) Identify the appropriate Accounting Distribution for the funds to be Transferred In (Source of Funds / Revenue) Note: 2 Please refer to Transfer Matrix for complete account listing. Below are most common transaction accounts:

5 4) Document ALL Department Approvals using Approval field Many departments have specific procedures and internal controls for preparing and authorizing transactions. Internal department procedures should be followed in addition to the mandated procedures of the Controller s Office. To determine if your department has specific procedures related to journal processing please contact your Business Manager, or Department Budget Manager. Additionally, if you are charging another department you must first obtain approval from that department. All department approvers must be documented per instructions in the approver field. Documentation ( , etc.) from other department indicating prior approval must be scanned and submitted as support with the request in order to be posted. 5) Properly document an FTAR using Description fields, Authorized Approver fields and Explanation field Description fields All journal lines are required to be supported by a complete description. The descriptions appear on the Actual Transaction Detail reports and are 30 characters in length. Syntax: When creating a journal entry, it is recommended to use one of the following keywords or action codes be used to identify the type of journal entry: The following guidance is provided to assist with preparing journal line descriptions: Action code + Original transaction reference + Unique Department identifying information. An example of an appropriate journal line description is illustrated below: COR_APVO123456_TO ACCT 6502 Suggested Action codes identify the type of journal entry correction. The commonly used Action codes are: Action Code SHR (Share) COR (Correction) R/A (Re account) REV (Reverse) Purpose or Description Use to share or transfer an individual transaction between Chartfield combinations. Use when correcting an error in the original transaction s Chartfield values. Use when correcting the Account value of the original transaction, where the other Chartfields remain the same. Use when correcting a previously posted journal entry that was created in error.

6 Original Transaction Reference The original transaction reference should be the Journal ID. Department Identifier The department identifier section of the journal line description should contain information that will be useful to your report users to identify why the adjustment was made. Common examples of information include vouchers, further identifying text, etc. Authorized Approver fields Document the person authorizing the transaction adjustment. In most cases, this is the department budget manager. If you are charging another department you must first obtain approval from that department. All department approvers must be documented per form instructions in the approver field. Documentation of ( , etc.) of other department approval must be scanned and submitted as support with the request in order to be posted. Additional Explanation field This field is found on the bottom Left hand corner of the FTAR. Please provide general information about the request or any additional information needed to further document the request. 6) FTAR for submission After completion, e mail the form to FinTrans@scu.edu. Only files sent to this e mail address can be uploaded to Peoplesoft. Submit only one FTAR per . Do not submit an FTAR more than once. The UFO Systems Accounting group will upload all the files received from 12:01 PM from the previous workday to files received not later than 12PM of the current workday. Files with chartfield errors, out of balance errors or source code missing/errors will be returned to the originator and the originator will need to fix and re submit the file. There will be an e mail response to the originator upon successful upload and it will include the Journal ID assigned to the file. At this point the request is not posted, and still requires review by your Finance Representative. 7) Processing The UFO Systems Accounting group will edit the Journal to see if all transactions in the Journal are valid. If one or more transaction failed the edit process, the Accounting Systems Group will notify your UFO representative about the error. If the Journal passed edit, the UFO Systems Accounting group will submit the Journal to you accounting representative. Your UFO Finance Representative can start the review of the Journals after 2PM each workday. Your Finance Representative may contact you if further information / clarification are needed to complete their review of the request. If all information is correct and the request is properly supported, your UFO representative have five options. Approve and post the Journal Approve and do not post the Journal and let the batch posting that runs every night to post the Journal Make corrections then edit, approve and post the Journal Make corrections then edit, approve and let the posting job at night post the Journal. Delete the Journal. The Accountant will notify the originator with explanation why the Journal was deleted. All files will be processed within 2 business days after receipt.

7 1) Transfer Accounting Matrix Appendix

8 Transfer Accounting Matrix TRANSFER IN / TO Fund Groups Education & General Education & General Plant External Grants (SPO) Internal Grants Designated Auxiliary Restricted Gifts xxx 14xxx 2xxxx 3xxxx 46xxx, 47xxx Endowment Income 41xxx, 42xxx, 29xxx Endowment Principal 6xxxx Reserves 8xxxx Expense 8981/2/83 Plant Expense 8982/83 SPO Grants 13xxx Expense 8982/83 TRANSFER OUT / FROM Internal Grants Designated Auxiliary Restricted Gifts Endowment Income 14xxx 2xxxx 3xxxx 46xxx, 47xxx 41xxx, 42xxx, 29xxx Expense 8982/83 Expense 8981/2/83 Expense 8981/2/83 Endowment Principal 6xxxx Loans & Annuities 5xxxx, 7xxxx Reserves 8xxxx Revenue 5969/70; Revenue 5968/69/70; Revenue 5970; Revenue 5970; Revenue 5969/70; Revenue 5969/70; Revenue 5970; Revenue 5969/70; Expense 8982/83 University Finance Office Only Note: Use Program Code XFER for all Transfers Effective