Module Learning Objectives

Transcription

1 Table of Contents Part I: General Ledger Journal Basics What is a General Ledger Journal? Methods to Complete a General Ledger Journal The Chartfield Structure Account Coding Rules at UBC Journal Voucher Policy and Procedure...6 Part II: General Ledger Journal Entries Create a General Ledger Journal...7 Exercise 2.1 Create a GL Journal View and Modify an Existing General Ledger Journal Delete an unposted General Ledger Journal Exercise 2.2 Delete a GL Journal Part III: General Ledger Journal Inquiry What is a General Ledger Journal Inquiry? Create a General Ledger Journal Inquiry Exercise 3.1 Inquiry an Existing GL Journal Part IV: Special General Ledger Journals Internal General Ledger Journal Exercise 4.1 Create an Internal GL Journal Accrual or Reversing General Ledger Journal Exercise 4.2 Creating an Accrual and Reversing GL Journal Standard Journal Exercise 4.3 Create a Standard GL Journal Cash Receipt Journals Exercise 4.4 Create a USD Cash Receipt GL Journal Spreadsheet Journals Appendix I Journal Voucher Policy and Procedures Appendix II Cash Receipts Journal Policy and Procedures Appendix III Spreadsheet Journal Policy and Procedures Appendix IV Excel Journal Load Format... 38

2 Module Learning Objectives This workshop is FMS Certification Module 2 General Ledger Journal, and teaches you the skills you need to create General Ledger Journals on the FMS Live site. By the end of this workshop, you will be able to: 1. Know the basics of General Ledger (GL) Journal 2. Create, modify and delete a GL Journal 3. View an existing GL Journal using Journal Inquiry 4. Understand and Create Various Special General Ledger Journals: Internal GL Journal Accrual/Reversing GL Journal Standard GL Journal Cash Receipt GL Journal Spreadsheet GL Journal Page 2 of 39

3 Part I: General Ledger Journal Basics By the end of this topic, you will: Be able to describe uses of a General Ledger Journal Know the methods to complete a General Ledger Journal transaction Know the Chartfield Structure Understand some of the Account Coding rules at UBC Know why a General Ledger Journal will fail the Edit Check Know the Policies and Procedures which pertains to the General Ledger Journal 1.1 What is a General Ledger Journal? General Ledger Journal Corrects erroneous entries among UBC PGs and accounts within the same PG; Records ad-hoc transactions including purchase or sale of goods to another UBC Department; Records financial transactions, which are not processed through another subsystem, such as the Accounts Payable module or Payroll Module Should be entered into FMS in Canadian currency only Terminology The General Ledger Journal entry page in PeopleSoft consists of the following tabs: Header - contains information which identifies the General Ledger Journal Lines Totals - Errors - - where Business Unit, Journal ID, and Journal Date are found - contains options which allow you to reverse the General Ledger Journal in the future - allows you to key in detailed description of the General Ledger Journal - records the monetary amounts and Chartfield values associated with each transaction line Only for review purpose and to check error once contacted by Financial Services personnel Once the Header and Lines tabs are completed, the General Ledger Journal is ready for processing. 1.2 Methods to Complete a General Ledger Journal 1. Complete a Journal Voucher Manual Form, and send it to Financial Services for processing 2. Complete a Journal Voucher Manual Form, and process it through FMS Live (certified users only) 3. Prepare a Spreadsheet Journal, and send it to Data Management for processing 4. Create a flat file, and have it loaded on the Unix Directory for subsequent loading into the General Ledger (applies to system created files only) Page 3 of 39

4 1.3 The Chartfield Structure The components, which make up the Chartfield Structure, are: Business Unit Identifies separate legal entities, such as UBC, UBC Real Estate Corporation, and UBC Foundation. Structure: 3-4 alpha/numeric characters e.g. UBC, FOM1 Required for all FMS transactions; defaults to UBC ; set up by Financial Services Dept only Account Fund Defines the type of transactions, such as revenues, expenses Structure: 6 numeric characters e.g Required for all FMS transactions Classifies assets, liabilities, revenue and related expenses according to their purposes. In Fund Accounting, all revenues and expenses must be classified and deposited to the appropriate fund. Structure: 5 alpha/numeric characters e.g. G0000 Required for all FMS transactions Department ID Represents any academic or other organizational unit that has defined fiscal, administrative and budgetary responsibility. Required for all FMS transactions Structure: 6 numeric characters e.g st four digits = centrally defined 1st and 2nd digits = faculty or admin unit 3rd and 4th digits = dept with faculty/admin unit last 2 digits = sub-dept/division(user-determined) Department ID s that start with 9 are used to identify central university activities, which might be managed by a specific department, on behalf of UBC. For example, the province of BC Operating Grant is administered by Financial Services, on behalf of the University. The 2nd through 6th digits are the first 5 digits of the Department that is responsible for the activity. Program groups related activities and transactions that are directed towards accomplishing a set of objectives enhances reporting flexibility; may be used in combination with other chartfields Structure: 3, 4 or 5 alpha/numeric characters e.g. OIP11 Optional; set up upon Dept s request Project/Grant (PG) tracks assets, liabilities, revenues, and expenses to a specific activity/grant/contract, for actual and budget transactions Page 4 of 39

5 Requirements: When a Fund and/or Dept ID are linked to a specific Project/Grant, that Fund and/or Dept ID must be used whenever the specified Project/Grant is used Structure: 8 alpha/numeric characters e.g. 12S st two digits = faculty or vice presidential area 3rd digit = fund group 4th to 8th digits = last 5 digits of old FRS account SpeedChart a code which gives the Fund, Dept ID, Project/Grant (PG) shortens time required for data entering Structure: 4 alpha characters e.g. CMVV Requirements: Optional; Set up upon Dept s request Budget Year Same as fiscal year In FMS, Year 2017 represents fiscal year ending Mar 31, 2017 Structure: 4 numeric characters e.g Requirements: Defaults to current Budget Year To request a chartfield setup, contact: Tanya Stein at tanya.stein@ubc.ca 1.4 Account Coding Rules at UBC Capital assets with life expectancy more than one year should be coded to an expense account which starts with 8xxxxx Expenses transfers have to be within the same financial accounting line (account code) unless it is a correcting or adjusting entry. This means that transferring expenses between PGs should occur under the same account code. Ie: transferal of salaries should go from in account A to in account B. A correcting entry would occur in cases where an expense is misclassified. Ie: re-classify salaries under to honorarium to reflect the correct type of expense. A list of account codes available can be found on FMS nquery Reasons for a General Ledger Journal to be not posted All journals go through Budget Check, Edit Check and Posting in a batch process, which runs overnight by Financial Services. There are some instances where the General Ledger Journal will not post. It is because it has failed the Edit Check due to one of the following reasons: posting to a closed accounting period invalid Chartfields combo invalid Chartfields values debits do not equal credits Page 5 of 39

6 1.5 Journal Voucher Policy and Procedure Highlights: Accuracy Authorization Supporting documents Record keeping (7 years) For detailed Journal Voucher Policy and Procedure please refer to Appendix I. Example of Supporting Documents according to the nature of JV transactions: Nature of JV Transaction 1. To transfer an expense from one PG to another to re-allocate/re-distribute expense to correct erroneous entry (such as wrong speed chart used) Supporting Documents (could be any or combination of supporting documents) Memo or to initiate action Copy of invoice or statement of account FMS details transaction Computation of the allocation or distribution of expense FMS payroll account details Timesheet for hours worked Cost sharing agreement, if any FMS details transaction Memo or to initiate action Copy of original transaction (copy QReq, TravelReq, JV) to clear PG deficit Memo or to initiate action Print out of the general ledger to transfer ineligible expense Memo or to initiate action Copy of original transaction (copy QReq, TravelReq, JV) 2. To record inter-departmental charges (expense to one PG and revenue to another PG) The JV should be completed by the charging department, not the receiving department. The department being charged with the expense should approve the JV. Invoice Statement of account Timesheet for hours worked 3. To correct transactions within the same PG (like error in the use of account code) Copy of the original transaction (copy QReq, TravelReq, JV) Page 6 of 39

7 Part II: General Ledger Journal Entries By the end of this topic, you will: Know how to create a General Ledger Journal Know how to view and modify an existing General Ledger Journal Know how to delete an General Ledger Journal 2.1 Create a General Ledger Journal To create a new General Ledger Journal, perform the following steps: 1. Navigate to the following: General Ledger >> Journals >> Journal Entry >> Create Journal Entries 2. Start on the Add a New Value tab. 3. Leave the SetID field as default UBC. 4. Leave the Journal ID field as default NEXT. 5. Click the to select the date you want the journal to be posted. 6. Click the button. The create Journal Entry page will open. Note that an incomplete journal can be saved by checking the box for Save Journal Incomplete 7. You are now on the Header tab. 8. The Long Description is populated from the UBC Journal Description hyperlink [See Step 13 to 14]. Page 7 of 39

8 9. The Ledger Group is ACTUALS, unless it is a Budget Journal [Ledger Group = CENTRAL for Budget Journal]. 10. Click the next to the Source field to select the source code for the journal. For example, a General Ledger Journal keyed in online by the UBC Department will have a JVD source code. 11. Enter the preprinted number on the journal voucher manual form in the Reference number field. 12. Leave other fields as default. 13. Click the UBC Journal Description hyperlink. 14. Complete the fields as shown below. Note the Contact should be Last Name,First Name with no space after the comma. 15. Click 16. Click on the Lines tab. Note: Always enter the amount of the journal in the Amount field. Never attempt to change the amount in the Base Amount field. 17. Enter the Chartfields 1 combinations and amounts. These must be completed for each journal line. 18. Click the button to add a new line. 19. Refresh the screen by clicking on the button. 20. Check that the Total Debits equal the Total Credits. 21. Click 22. Print a copy of the journal and retain it with supporting documentation for audit purposes. 1. The following Chartfields are used by UBC: Account required field Fund required field Dept ID required field Program optional field Project/Grant optional field Note: If a SpeedChart is not used, the first two fields PC Business Unit (UBC) and Project have to be filled out. If a SpeedChart is used, the first field PC Business Unit can be blank. Page 8 of 39

9 Exercise 2.1 Create a GL Journal In this exercise, you will create a General Ledger Journal using the following journal voucher manual form: 1. Click after you have data entered the above journal voucher manual form. 2. Write down the 10-digit Journal ID in the Data Entry Use Only box. Page 9 of 39

10 The end results of this exercise should look like: Header tab Long Description Box Lines tab Page 10 of 39

11 2.2 View and Modify an Existing General Ledger Journal To view an Existing General Ledger Journal, perform the following steps: 1. Navigate to the following: General Ledger >> Journals >> Journal Entries >> Create Journal Entries 2. Click the Find an Existing Value tab. 3. Leave Business Unit as default UBC. 4. Enter the 10-digit Journal ID in the Journal ID field. 5. Select the Journal Date by clicking on the button. 6. Leave Line Business Unit as default UBC. 7. Click on the drop down menu for Journal Header Status, and select a blank field. 8. Leave Budget Checking Header Status field blank. 9. Enter the journal Source Code in the Source field. 10. Click This above steps will bring you back to the page where you created the Journal. If the Journal entry has not yet been posted, you can modify all the fields except the Date, Ledger Group and Source. Page 11 of 39

12 2.3 Delete an unposted General Ledger Journal General Ledger Journal Deletion Basics Once a General Ledger Journal is posted, it cannot be deleted. If you realize that the General Ledger Journal is incorrect and it is posted, within reasonable circumstances, you can contact Data Management in Financial Services and have it Unposted. Data Management will reverse the Journal, leaving a full audit trail of the original entry and the subsequent unposting. The second method to reverse a posted Journal is to create a new General Ledger Journal on the FMS Live site, which reverses what was posted. Ensure that supporting documentation is attached to the correcting entry. The third method is to delete the Journal in the FMS Live site. This only applies to Journals, which are not posted. The system makes no audit trail of the deletion as it assumes that you are correcting a mistake. Delete Unposted General Ledger Journal To delete the General Ledger Journal, perform the following steps: 1. Perform Step 1 to 10 in Topic Click on the Lines tab. 3. Select Delete Journal in the drop down menu of Process. 4. Click 5. The following question will appear: 6. Click Exercise 2.2 Delete a GL Journal In this exercise, you will delete the General Ledger Journal you created in Exercise 2.1 Use the 10-digit Journal ID you wrote in the Data Entry Use Only box to retrieve the journal Page 12 of 39

13 Part III: General Ledger Journal Inquiry By the end of this topic, you will: Know what a General Ledger Journal Inquiry is Know how to perform a General Ledger Journal Inquiry on the FMS Live site 3.1 What is a General Ledger Journal Inquiry? In the FMS Live site, PeopleSoft has comprehensive Journal Inquiry pages to allow users to determine the status of Journal Entry at any time during Journal Processing. These pages also allow users to search for Journals that meet defined criteria. Journals can be searched for in PeopleSoft using the following criteria: - Ledger * - Year * - Period * - Journal ID - Journal Date - Status - Source - Currency - User * required criteria In order to narrow down your search, it is advised to use multiple search criteria. The system will assume you are looking for all values for those criteria, which have blank fields. The Journal Inquiry page in the FMS Live site allows you to look up General Ledger Journals as long as the required criteria are specified, i.e., the Ledger, Year, and Period. On the other hand, the Journal Inquiry page in the FMS nquery site requires you to input either the 10-digit Journal ID or UBC Journal Reference Number e.g. TXXXXXX for cash receipt form or JXXXXXX for journal voucher form. Therefore, if you do not have the Journal ID or the UBC Journal Reference Number, you should use the Journal Inquiry page in the FMS Live site to look up General Ledger Journals. Page 13 of 39

14 3.2 Create a General Ledger Journal Inquiry To create a General Ledger Journal Inquiry, perform the following steps: 1. Navigate to the following: General Ledger >> Review Financial Information >> Journals 2. Start on the Add a New Value tab the first time you do this. 3. Enter a name for this inquiry. 4. Click 5. Enter the information of the journal you want to inquire on. Any blank field means that the system will bring back all journals that meet the other criteria. Fields, which are marked with an asterisk, are required fields. 6. Click Click and the system will bring up applicable journals. 8. Click on the Journal ID hyperlink to get the details on the journal. For subsequent General Ledger Journal Inquiry, you can use the Inquiry Name which is already created. Exercise 3.1 Inquiry an Existing GL Journal In this exercise, you will inquire on the journal you created in Exercise 2.1 Page 14 of 39

15 Part IV: Special General Ledger Journals By the end of this topic, you will be able to: Understand and create Internal General Ledger Journal Understand and create accrual or Reversing General Ledger Journal Understand and create Standard General Ledger Journal Understand and Create Cash Receipt General Ledger Journal Understand and create Spreadsheet Journal 4.1 Internal General Ledger Journal What is an Internal General Ledger Journal? An Internal General Ledger Journal is one where a Revenue account is credited with a corresponding debit to an Expense account. Internal Journals are used when one University department sells goods and/or services to another University department. The following are examples of the use of Internal Journals: 1. Internal sales transactions between funds or functions where the price to the internal party is determined based on either the commercial value of the services or product, or the cost of the services or product. The price would normally include a profit component and would usually originate from ancillary services. 2. Internal cost recoveries transactions related to the recovery, charge-out or transfer of costs between funds or functions. This refers specifically to overhead costs, equipment usage charges, and the like. Internal Journals should not be used for the following transactions: 1. Sales to/from Agency accounts (Z fund); and 2. Internal sales recorded as cost reduction where expense accounts are both debited and credited. Why do we need to identify Internal Journals? The main objective of identifying Internal Journals is to facilitate external financial reporting. To avoid double counting, internal revenues and internal expense transactions are eliminated from the University s consolidated financial statements and from the CAUBO annual return. Another supplementary objective is the streamlining of the reporting process to remove any manual tracking of internal transactions within the departments. The current financial reporting processes should be able to identify the internal charges amounts for elimination if they are coded correctly in the financial management system. How do we deal with Internal Billing? Some departments recognize internal accounts receivable when invoices are prepared. The internal accounts receivable represents the sale of products or services to another department. The account Accounts Receivable Internal should be debited to recognize this type of transaction. However, instead of crediting a revenue account, the department should credit Deferred Revenue. When the purchasing department sends a Journal Voucher payment, the billing department would then reverse the Page 15 of 39

16 Accounts Receivable / Deferred Revenue entry, and recognize the internal transaction (Debit Expense and Credit Revenue) through an Internal General Ledger Journal. Guidelines for Processing Internal Journals Important things to remember when processing internal revenues and internal expense transactions: 1. The total amount credited for revenues must match the total amount debited for expenses. 2. External transactions cannot be combined with internal transactions in one journal voucher. 3. There should be no balance sheet accounts or interfund transfer accounts in an internal journal, except for the interfund balancing account which is system-generated. 4. Sales to agency accounts are considered an external transaction and should not be part of an internal journal. 5. Revenue transfers where a revenue account is both debited and credited and expense transfers where an expense account is both debited and credited should not be processed as an Internal Journal. Create an Internal General Ledger Journal To create an Internal Journal, perform the following steps: 1. Perform Steps 1 to 17 in Topic Click the Header tab, and enter the value INTERNAL in the Journal Class field. 3. Click SAVE. 4. Print a copy of the Internal Journal and retain it with supporting documentation for audit purposes. Page 16 of 39

17 Exercise 4.1 Create an Internal GL Journal In this exercise, you will create a General Ledger Journal using the following journal voucher manual form: Click after you have data entered the above Journal Voucher manual form. Page 17 of 39

18 4.2 Accrual or Reversing General Ledger Journal What is an Accrual or Reversing General Ledger Journal? Accrual or Reversing General Ledger Journals are widely used in quarter end and year end reporting. Here is an example of when an accrual or reversing General Ledger Journal is used: An invoice is received after the Accounts Payable cutoff for processing invoices for the month. A General Ledger Journal is raised to accrue the expense in the old period. However, it needs to be reversed, so that the expense is not double counted when the invoice is processed to pay the vendor by Accounts Payable in the new period. Create an Accrual or Reversing General Ledger Journal To create an Accrual or Reversing General Ledger Journals, perform the following steps: 1. Perform Step 1 to 17 in Topic Click the Header tab. 3. Click the Reversal hyperlink. 4. Select one of the following reversal options: Page 18 of 39

19 The following is the definition of each reversal option: Do not generate reversal No automatic reversal. This is the default. Beginning of next period Automatic reversal on the first day of the next accounting period. This is the most commonly used reversal option End of next period Automatic reversal on the last day of the next accounting period. Next day Automatic reversal on the next business day Adjustment period Automatic reversal in the next adjustment period. Not applicable in UBC. Do not use. On date specified by user Automatic reversal on the date specified in the Reversal Date field. Ignore the ADB Reversal section. It is not applicable to UBC. Exercise 4.2 Creating an Accrual and Reversing GL Journal In this exercise, you will create a General Ledger Journal, which reverses at the beginning of the next accounting period, using the following Journal Voucher manual form: Click after you have data entered the above Journal Voucher manual form. Page 19 of 39

20 4.3 Standard Journal What is a Standard Journal? With Standard Journal Entries (SJE), you can automate the entry of similar or identical journals. There are three types of Standard Journal Entries in PeopleSoft: - Recurring - Template - Spread (not applicable to UBC; do not use) Recurring Standard Journal Recurring Standard Journals are used for repetitive transactions, which have the same Chartfield combinations and amounts. Monthly rent, automobile lease payments, and amortization expenses are examples of recurring items, which you might charge constant amounts to the same Chartfield combination each period. If the Allow Lines to be Modified box is checked, the system will remove amounts in the journal. You are required to modify the journal before editing and posting. Therefore, ensure that you remove the check in the Allow Lines to be Modified box, so that amounts will populate for these Recurring Standard Journals. Template Standard Journal Template Standard Journals are used for regular, periodic transactions, which use the same Chartfield combinations but varying amounts. Examples include monthly payroll, utility, and telephone expenses. The system will post nil amounts for the Template Standard Journals until the user modifies them. Therefore, ensure that you tick the Allow Lines to be Modified box, so that you can modify the Template Standard Journals before the system edits and posts them. Both Recurring and Template Standard Journals can be scheduled to post into the general ledger daily, weekly, monthly or annually. Spread Standard Journal Spread Standard Journals are used for transactions of which the entire cost is spread proportionately throughout the year. Spread Standard Journals are not used at UBC. It is recommended that you manually calculate the periodic amount and use the Recurring Standard Journal functionality. Contact Frances Tadman ftadman@mail.ubc.ca (Data Management) for info on using Standard Journal. Create a Standard Journal There are 4 main steps in creating journals from the Standard Journals process. 1. Create a Standard Journal template through the regular journal entry (Topic 2.1). 2. Define the Standard Journal 3. Create Standard Journals (done for users by Data Management, Financial Services). 4. Modify Standard Journals created prior to Journal Date. Page 20 of 39

21 1. Create a Standard Journal template through the regular journal entry a. Create a Standard Journal template through the regular journal entry as discussed in Topic 2.1 (Step 1 to 17), with the following specified: Source STJ SJE Type Model b. Click c. Write down the 10-digit Journal ID. 2. To define a Standard Journal, perform the following steps: a. Navigate to the following: General Ledger >> Journals >>Standard Journals >> Define Journal Entries b. Start on the Add a New Value tab. c. Enter a name for the new Standard Journal. d. Click e. Enter a description for the Standard Journal in both Description fields. f. Select the type of Standard Journal in the SJE Type field. g. In the Model Journal section, key in the Journal ID(Step 1c) for the Standard Journal. This Journal will become the template for future journals. h. Select the date in the Date field. (There will be only one date to choose from, and it is the date when the Model Journal was created.) i. In the Standard Journal section: Page 21 of 39

22 Key in a 10-digit Journal ID (alpha/numeric characters) in the Journal field Tick the Allow Lines to be Modified box if it is a Template Standard Journal; untick the box if it is a Recurring Standard Journal. j. In the Create Standard Journals section Select the frequency of the Journals in the Schedule field. Specify the date range for the Standard Journals to be created. Enter 365 days, in the Journal Creation Lead Days field, to create all the Journals for the following year. This field tells the system the number of days in advance of the Journal Date, which you would like the Standard Journals to be ready. If you leave this field blank, the system will create the Standard Journals on the Journal Date. k. Click 3. Create Standard Journals (done for users by Data Management, Financial Services). To create the Standard Journals from the Standard Journal definition you created in Step 2, you have to contact Data Management, Financial Services. a. An alternative and preferred method of defining the journal would be to send it to Frances Tadman for definition with the following Information: - Journal ID - Description - SJE Type: Template/Recurring - Schedule: Monthly etc - Allow lines to be modified: Yes/No - From date: - To date: b. Please allow sufficient time for Frances to create your Standard Journals. 4. To modify the Standard Journals created prior to the Journal Date, perform the following steps: a. Navigate to the following: General Ledger >> Journals >> Journal Entries >> Create Journal Entries b. Click the Find an Existing Value tab. c. Leave Business Unit as default UBC. d. Enter the 10-digit Journal ID in the Journal ID field. Page 22 of 39

23 e. Select the Journal Date by clicking on the button. f. Leave Line Business Unit as default UBC. g. Click on the drop down menu for Journal Header Status, and select a blank field. h. Leave Budget Checking Header Status field blank. i. Enter STJ in the Source field. j. Click k. Click the Journal ID you want to update. l. Click the Lines tab and make the necessary changes. m. Click n. The Standard Journal will now go through the Edit and Budget Check, and be posted in the general ledger on the Journal Date. Page 23 of 39

24 Exercise 4.3 Create a Standard GL Journal In this exercise, you will: 1. Process the JV below as a standard journal 2. Define the standard journal for submission to data management. Business Unit UBC Standard Journal Name your name Description ON JV SJE Type Recurring Journal ID USE (for training purpose) Date USE 06/13/2005 (for training purpose) Allow lines to be modified No Schedule Monthly From/To Date today s date/ today s date plus 1 year Journal creation lead days 365 Page 24 of 39

25 4.4 Cash Receipt Journals What is a Cash Receipt General Ledger Journal? The Web Cash Receipts Program, which is one of the components of FMS, should be used to record Canadian and US currency cash receipts. Click on the Online Cash Receipts hyperlink. The following will appear: Page 25 of 39

26 An alternate method to record a cash receipt in the system is to perform a regular journal entry on the FMS Live site. Refer to Topic 2.1 Source Codes for Cash Receipt General Ledger Journal A Cash Receipt General Ledger Journal can be entered in Canadian or US currency (CC_ for Canadian or CU_ for US): D Cash Department User department deposits cash, originates form, enters data, and files form F Cash Finance Financial Services deposits cash, originates form, enters data, and files form M Cash Manual User Department deposits cash and originates form, then sends form to Financial Services for data entry and filing As of December 31, 2005, the processing of Cash Receipt General Ledger Journal by Financial Services (Accounts Payable) for UBC Departments was phased out (refer to Topic 1.6). However, the Accounts Payable Manager can approve processing of such on a case-to-case basis. Cash Receipts Journal Guideline is available in Appendix II. Create a Journal for CAD & USD Cash Receipts All General Ledger Journals are defaulted to the Canadian currency. If you are performing a Canadian Cash Receipt General Ledger Journal, complete Step 1 to 17 in Topic 2.1. If it is a US Cash Receipt General Ledger Journal that you want to perform, do the following steps in addition to Step 1 to 17 in Topic 2.1: 1. Click the Header tab. Page 26 of 39

27 2. Click the Currency Defaults hyperlink. 3. Enter USD in the Transaction Currency field. 4. Enter the following applicable Rate Type: AVG - deposits < or = $9,999 COMM - deposits = or > $10, Click the to select the date the deposit was taken to the bank. 6. Click 7. Click 8. Print a copy of the journal and retain it with supporting documentation for audit purposes. Page 27 of 39

28 Exercise 4.4 Create a USD Cash Receipt GL Journal In this exercise, you will create a USD Cash receipt GL Journal in the FMS live training environment using the sample manual cash receipts form below: Page 28 of 39

29 4.5 Spreadsheet Journals What is a Spreadsheet Journal? Spreadsheet Journal is a convenient method whereby you can create Journals in an excel spreadsheet, and load them into the General Ledger. It is an alternative method to manual data entry. AT UBC, it is the responsibility of the Department to complete the excel spreadsheet in the pre-defined format and send it to Data Management via for processing. The Spreadsheet Journals will be loaded into the General Ledger within one or two business days. The excel spreadsheet template provided by Data Management must be used for all Spreadsheet Journals. No changes can be made to the template, and this includes column widths, headings, formatting etc. If changes are made to the template, the Spreadsheet Journal will not load into the General Ledger. Please note that only Spreadsheet Journals with 25 journal lines or more can be loaded into the general ledger. Create Spreadsheet Journals 1. Use an Excel Heading Template. A standard heading template (as shown below) must be used for all excel spreadsheets. The template can be requested from Data management if your department has not already had one. Nothing can be modified in any way (ie: column widths, heading titles, etc.), or the process won't work. For detail Formatting Guideline, see Appendix III. 2. Import Data (value only) to the heading template. I suggest you save the template, then when you have data, copy the DATA (values only) to the template spreadsheet (starting at line 3), then save the newly created file as something else (file name format below). 3. Save Excel File in Specific naming convention. Your (newly created) file name should read "deptiiyyyymmdd-nn.xls" all lower-case letters (The dept = your 3 or 4-digit dept.name, ii = your initials, yyyy = current year, mm = current month, dd = the date on which you send the file, nn = instance no. of the file you're sending. Detail explanation of the naming convention can be found in Appendix III.) If you are sending a correcting file, please ensure the file name remains the same (with the instance no. changing --- ie: -01 is the original file; -01a would be the correcting file). For example, if you send a file called deptii prn and there are errors in the file, the correcting file you send will be deptii a.prn. 4. Add up the $ amounts in your EXCEL file. The amount must NET to $0.00. If it does not, please make the correction before you run the macro. (The sum line must then be removed before running the macro.) 5. Run the Excel Macro File. The excel Macro File can be obtained from Data Management if your department has not already had one. Please ensure you save this file in one of your own folders (it might be a good idea to save a second copy in another folder, in case the original one gets corrupted). Step by step instructions on how to run the macro can be found in Appendix IV. Page 29 of 39

30 6. Save the.prn file, send to Data Management. If the file created after running the macro has an extension of.xprn, please rename the file by simply removing the x from the extension (so it s just.prn ).* If you are using Microsoft Office 2007, you need to change your security settings. You can consult Data management for details. 7. Use template when sending your s. You can obtain this template from Data management. Provide the following information together with the saved.prn file. Contact Name Contact Phone Number Filing Location Department File Name Total Debits / Total Credits Total # of lines (excluding the 2 header lines from the template) BRIEF description of the entries (MAXIMUM 75 CHARACTERS/SPACES) INTERNAL or EXTERNAL -- Are these entries debiting expense accounts and crediting revenue accounts? Yes (Internal) or No (External) In accordance with the Journal Voucher Policy and Procedures and the Spreadsheet Journal Policy and Procedure, this Spreadsheet Journal and its supporting documentation will be maintained by my department for seven years. 8. Finally, the Deadline for submitting Excel files is the last business day of each month (except at year-end, when we notify users of all the deadlines). Month End Deadlines can be found on UBC finance website under Budgeting and Reporting. Data management sends reminders each month as well. Page 30 of 39

31 Appendix I Journal Voucher Policy and Procedures Purpose To ensure that Journal Vouchers (JVs) are processed accurately in a timely and efficient manner. Policies 1. A JV is used to record transactions which are not processed through the FMS Accounts Payable or HRMS (Payroll) applications. 2. A JV can only be entered using the Canadian dollar currency. 3. A JV must be approved by the Project Grant (PG) signing authority or department level signing authority. 4. A JV must be supported by any or combination of the following documents. The documentation must provide enough details to satisfy an auditor, internal or external. invoice or statement of account FMS payroll employee details or memo authoring the JV to be prepared calculation of correction, adjustment or redistribution of expense FMS details transaction print out of general ledger cost sharing agreement timesheet for hours worked copy of the original transaction being corrected or adjusted (copy of requisition for payment (QReq), travel requisition (TravelReq) or JV being corrected or adjusted a note indicating where the appropriate supporting documentation can be found, if applicable others when appropriate. 5. An explanation is required to ensure that any questions arising regarding a JV can be answered by reviewing the transaction description and additional notes. Proper documentation is mandatory as it ensures that there is no need for individual recollection. The following JV fields must be filled in. JV source description of transaction speed chart account number fund code department ID PG number debit amount credit amount direct queries to (with full name), phone # & department authorization signature, printed name and date Applicability The JV policy applies to all faculties, departments and ancillary operations. Exceptions There are no exceptions to the JV policy. Page 31 of 39

32 Procedures 1. There are four methods to complete a Journal Transaction: o Complete the JV Manual Form and send it to Accounts Payable (AP) for processing. This has not changed as a result of the current upgrade. o Complete the JV via Direct On-Line Processing (On-Line Users only). o Create an excel spreadsheet file (in a pre-defined format), and send it to Data Management (covered in the Policy and Procedure for Spreadsheet Journals). In order to use this method, the minimum number of journal lines required in each excel spreadsheet file is 25 journal lines. o Create a flat file, and load onto the Unix Directory for subsequent loading into the ledgers (contact Frances Tadman at frances@finance.ubc.ca in Data Management for details). 2. When AP processes the JV on behalf of the UBC Departments, AP should: 3. Ensure the JV is signed and authorized with the full name of the authorizing person printed in the JV form 4. Ensure that supporting documentation(s) are provided 5. When UBC Departments send the JV to AP for processing or process their own JV on-line, the UBC Departments should: 6. Ensure the JV is accurate, like debit and credit total amounts are equal and valid 7. Ensure the JV is authorized by the person who has the signing authority of the PG or department level signing authority 8. Ensure appropriate supporting documentation(s) 9. Ensure that all information is complete as enumerated in Policy #5 above. Invalid information should be communicated with the person who submits the Manual Form. 10. Steps to create a JV are outlined in Chapter 2 of the PeopleSoft 9.0 General Ledger Journal Training Manual or refer to Module II FMS Certification training. 11. Complete the Data Entry Use Only Box on the Manual Form by filling in the Journal ID number, name of the person who entered the voucher, and Journal Date after the financial transaction is entered on-line. 12. If manual JV form consists of more than one page, indicate page of on the upper right hand corner of the form. 13. The manual JV form should be distributed as follows: Pink to Financial Services, Yellow to originator. This appendix is to be used as a guideline. The most current Financial Policy and Procedure can be found at Page 32 of 39

33 Appendix II Cash Receipts Journal Policy and Procedures Purpose To ensure all Cash Receipts Journal Vouchers are processed accurately in a timely and efficient manner. Policy Cash Receipts Journal Vouchers (JV) should be accurate, properly authorized and attached with appropriate supporting documentation. The processing of Cash Receipts JV by Accounts Payable (AP) phased out as of December 31, All cash receipts after this date should be recorded using the Web Cash Receipts Program by the Department. Applicability Applies to all faculties, departments and ancillary operations. Exceptions There are instances where Cash Receipts JV may need to be processed by AP after December 31, The AP Manager will approve these Cash Receipts JV on a case-to-case basis. Procedures 1. Financial transactions involving cash deposits, which are not processed through the Web Cash Receipts Program, should be recorded utilizing Cash Receipts JV, which should be entered in either Canadian or US currency. 2. When AP processes the Cash Receipts JV on behalf of the UBC Departments, AP should: a. Ensure the Cash Receipts JV is authorized by the person who has the signing authority on the Project/Grant (PG), or by the person who is one level higher than the JV preparer. b. Ensure appropriate supporting documentation or a note, indicating where the appropriate supporting documentation can be found, is attached to the manual form. 3. When UBC Departments process their own Cash Receipts JV on-line, the UBC Departments should: a. Ensure the Cash Receipts JV is accurate and valid. b. Ensure the Cash Receipts JV is authorized by the person who has the signing authority on the Project/Grant (PG), or by the person who is one level higher than the JV preparer. c. Ensure appropriate supporting documentation or a note indicating where the appropriate supporting documentation can be found, is attached to manual form. 5. Appropriate supporting documentation includes bank deposit forms, invoices and any documentation, which supports the Cash Receipts JV to be posted in the General Ledger. 6. Ensure that all information is complete with valid Speed Chart, Account Number, Fund Code, Dept ID, and Project/Grant (PG) ID. Invalid information should be communicated with the person who prepares the manual form. 7. Enter data from manual form following the steps outlined in Topic 2.1 & 4.4 of this workbook 8. Complete the Data Entry Use Only Box on the manual form. Fill in the Journal ID number, Name of the person who enters the voucher, and Journal Date, after the transaction is entered on-line. 9. For USD Cash Receipts JV, additional steps are outlined in Topic 4.4 of this workbook Records Cash Receipts Journal Vouchers and their supporting documentation must be maintained for 7 years. This appendix is to be used as a guideline. The most current Policy and Procedure regarding cash receipts can be found at Page 33 of 39

34 Appendix III Spreadsheet Journal Policy and Procedures Purpose The purpose of the policy is to ensure all Spreadsheet Journals are processed in a timely and efficient manner. Policy Spreadsheet Journals must be accurate, properly authorized and attached with appropriate supporting documentation. UBC Departments should complete the excel spreadsheet in the pre-defined format before sending it to Data Management via for updating into the General Ledger. The Spreadsheet Journals are then loaded into PeopleSoft in a timely manner, and are processed before the completion of the month-end process. Applicability Applies to all faculties, departments and ancillary operations Exceptions This process cannot be used to load Accounts Payable entries. Procedures 1. Obtain the authorization from your department heads or supervisors to use the Spreadsheet Journals, and send the authorization directly to Data Management via or Campus Mail. 2. Spreadsheet Journals must be a minimum of 25 lines, or more. 3. Obtain the Spreadsheet Journal Heading template and data formatting information from Frances Tadman in Data Management ( frances.tadman@ubc.ca) to complete your Spreadsheet Journal. 4. Fill in the data in your file, and save it as a separate Excel file. NOTE: File Name should conform to the standard naming conventions as follows: - deptiiyyyymmdd-nn.xls (all lower-case letters), WHERE - dept = department - ii = your initials - yyyy = year (current calendar year not fiscal year) - mm = current month - dd = day - nn = iteration number that is, -01 is the first file sent, -02 the second file sent the SAME day, etc. Example: If Frances Tadman created the file on February 10, 2010, the file name would be: fsft xls. 5. When you have completed filling in the Spreadsheet Journal, run the Excel Macro to format your Spreadsheet Journal. a. Open Macro File Page 34 of 39

35 Using Excel, open the file ( Journal Load Macro NEW ) from your selected directory. You must ensure you have your security set so you are able to run the macro. From Excel, select: Tools >> Macro >> Security Your security should be set at Medium (or Low if you wish, but this is not recommended You may be prompted for the following message: If you get this message, click on Enable macros Page 35 of 39

36 b. Run Macro Open your Excel DATA file. (This is the file in which you entered all your data from the Excel Template.) Ensure your Journal Load Macro NEW is also open. From your Data file, run the macro by pressing CTL & Q simultaneously. The macro will check the file for correct formatting. You will see 1 of the 2 following messages: Message 1: There are no errors Click OK. You will see the screen below Notice the file is no longer.xls, but.prn instead. Select the directory where you want to save this file. This is the file that is ed to Data Management. Once you have confirmed the directory and file name, click SAVE. You will see this: Click OK. When you close your Excel file, you will see this. You can choose either Yes or No; it will not affect the.prn file. Message 2: There are errors You will see the number of errors that are in the file. Click OK. Page 36 of 39

37 You can now see the errors; they will be highlighted in RED so they are easily identifiable. Correct all errors, and run the macro again. When you have re-run the macro, and you see the message There are no errors, follow the instructions above to save the file. 6. the newly created.prn file to Frances Tadman in Data Management, Finance for loading to FMS, and include in your the following journal header information: - Contact Name - Contact Phone Number - Filing Location - Department - File Name - Total Debits / Total Credits - No. of Lines (excluding the 2 template header lines) - Brief Description of the entries (max 75 characters/spaces) - Type of Transaction: Internal or External An Internal Transaction type is used for interdepartmental sales, i.e. revenues are credited and expenses are debited. For internal transactions, the data file must only contain revenues and expenses, and the amount of revenues credited must be exactly the same amount as the expenses debited. Do not combine internal transactions with other types of transactions. For more information, please refer to the Internal Charges section on the Finance website. 7. When you close the Macro file, DO NOT save changes! You must keep the Macro file as is, and cannot make any changes to it. You may want to save a copy of the Macro file in a separate folder, in case the original one gets corrupted. 8. Attach all supporting documentation to the hardcopy of the Spreadsheet, and file them in the filing location in your UBC Department which you have identified in your journal header information. Examples of supporting documentation include invoices, memos or any documentation which supports the entries in the Spreadsheet Journal which will post to the General Ledger. Records Spreadsheet Journals and their supporting documentation must be maintained for seven (7) years at the UBC Departments. This appendix is to be used as a guideline. The most current Financial Policy and Procedure can be found at Page 37 of 39

38 Appendix IV Excel Journal Load Format Journals can be loaded from an Excel spreadsheet which conforms to the following specifications: 1. HEADERS (see separate document - Excel Journal Template) ** All highlighted fields MUST be filled in 2. Ledger Must be ACTUALS (left justified) - UPPER CASE 3. Account your 6-digit FMS account code 4. Speed Chart 4-character Speed Code 5. Fund FMS Fund Code 6. Dept ID 6 digit FMIS Deptid 7. Progm FMS Program Code (may be blank) 8. Sub Class May be blank 9. Bdgt Year Current Fiscal Year 10. Project FMS P/G number 11. Affiliate May be blank 12. Cur Must be CAD (No US entries) 13. Amount no commas or dollar signs 14. Desc Line Description (appears on Report of Transaction) 15. Date Journal Date (format = yyyy/mm/dd) 16. Reference This can be either a date or a reference of your own NOTES: - Excel spreadsheets must be a minimum of 25 lines - File name must conform with our standard naming convention : deptiiyyyymmdd-nn.prn o where dept = your department name; ii = your initials; yyyymmdd = yearmonthday - File name must be in lower-case letters, and should not exceed 13 characters and be followed by -nn, where nn = instance number of the file sent. o ie: -01 will be the first file sent on a particular day, -02 will be the second (new) file sent that day, - 03 the third, and so on. - File must be saved in Excel format (after which you run the macro which will convert it to a ".prn" file) - Header Lines must be left-justified AND must read exactly as shown in template - All columns must be in text format EXCEPT the Amount and Date columns o All columns must be left justified EXCEPT the Amount column, which is right justified - Speed Chart column - Use either Speedchart or full chartfield information; if you enter both, the system will only process the speedchart & ignore the rest of the line - Amount column must be in number format, 2 decimal places, no commas; Credit must be with a leading - (minus) -- e.g.: Page 38 of 39