MSU Accounting in EBS

Applying Accounting Concepts to Transactions in the Finance System

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Agenda

• Basic Accounting Concepts• Applying Accounting Concepts in the Finance

System• Account Review• Internal Controls

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Basic Accounting Concepts

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Debits and Credits

• Balance Sheet and Income Statement• Why debits and credits matter• Relationship to Object Codes• Tools for understanding “T” accounts

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Object Code RangesBasic Accounting Category

Object Name Type Object Type Code

Numeric Ranges

Asset Assets AS 1000‐1999

Liability Liabilities LI 2000‐2999

Fund Balance Fund Balance FB 3000‐3999

IncomeIncome‐Cash

IN4000‐5999

Transfer In 4100‐4103

ExpenseExpense Expenditure

EX

6000‐7999(7000’s are expense budget)

Transfer Out 6100‐6103

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Concepts of Fund Accounting

• Why MSU uses fund accounting• Funds, sub-funds, business rules• Restricted vs Unrestricted funds

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Fund Group ChartFund Group Code Fund Group Name Restricted Status

AF AGENCY FUND unrestricted

GF GENERAL FUND unrestricted

DF DESIGNATED FUND unrestricted

XF AUXILIARY FUND unrestricted

RF EXPENDABLE RESTRICTED FUND restricted

NF ENDOWMENT FUND restricted

LF STUDENT LOAN FUND restricted

TF RETIREMENT AND INSURANCE restricted

PF PLANT FUND unrestricted/ restricted

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Applying Accounting Concepts in the Finance System

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Accounting Line

• Components of the Accounting Line• Best practices for reporting

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Object Codes

• Why are they important• Categories and relationships• How they classify transactions• Object Codes and Business Rules• Sub-Object Codes

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Object Consolidation and Level Codes• Each level of detail rolls up to the

one above it. • Optional sub-objects roll up to

object codes, the required level of detail on a financial transaction.

• Object codes in turn roll up to object levels, which then roll up to consolidation codes.

• The number of categories decreases as you decrease the level of detail. There are over 600 object codes, but less than 30 consolidation codes.

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Consolidation Code

Object Level

Object Code

Sub‐Object

Other Accounting Line Elements

• Sub accounts• Project Codes• Org Ref ID field • Line Description

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Transactions

• Document workflow• Vendors and Disbursement Vouchers• Moving Funds• One-sided Transactions

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Basic Routing

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Organization Review Routing

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Detailed Document SearchTo locate pending

entries (reporting and closing an account):

Select Type: KFSTSelect Status: Pending Statuses

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Internal Controls

Separation of DutiesChecks and Balances

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Vendors• Disbursement Voucher (DV)

• Vendors used for the purchase of goods or services.• Requires a Tax ID.

• Special Payment (SP) • Vendors used for research participant payments ($150 or

less), refunds, or non-employee reimbursements.• Does not require a Tax ID.

• Purchase Order (PO) • Vendors can be used on a DV. When using a PO vendor on a

DV, the document will automatically route to Purchasing as an additional workflow step.

• Should only be created by Purchasing.

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Transaction E-Docs• Disbursement Voucher (DV)• Budget Reallocation (BA)• Transfer of Funds (TF)• Distribution of Income and Expense (DI)• General Error Correction (GEC)• Intra Account Adjustment (IAA)• Internal Billing (IB)

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Disbursement Voucher (DV)

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Payee Lookup/Payment Reason Codes

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Transfer of Funds (TF)

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Budget Reallocation (BA)

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Distribution of Income and Expense (DI)

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General Error Correction (GEC)

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Reference Origin Code

• Use the code listed on the Operating Statement. • KFS transactions all have the code of 01. • Service Billers may use other Origin Codes.

• The reference number is the transaction e-doc or document number (also listed on the Operating Statement).

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Error Correction Button

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Internal Billing (IB)

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Service Billing (SB)

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Intra Account Adjustment (IAA)

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One-Sided TransactionsDoc 1625986

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Account Review

Monthly Account ReviewFinance System LookupsBusiness Intelligence Reports

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KFS Lookups

Benefits:Quick balance informationMany are drillable (can get to transaction detail).

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Current Account Balance Lookup

• Chart Code is Required• Search by Account, Sub-

Account, Org Code or Fiscal Officer.

• Consolidation gives information at the Account level, Detail gives information at the Sub-Account level.

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Current Account Balance Results

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General Ledger Balance Lookup

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General Ledger Balance Results

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Balances By Consolidation Lookup

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Balances By Consolidation Results

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Open Encumbrances Lookup

To include all encumbrances, remove the Balance Type “EX.”

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Open Encumbrance Results

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Business Intelligence Reports

• Access to folders depend on roles in BI.

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AccountsPayable Chart of Accounts

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Contracts and Grants

Capital Asset Management

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General Ledger

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Purchasing Materiel Management (Stores)

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Expense Line from the Operating Statement (FIN049)

Stores Order Statement –FIN085 (Click the order # above)

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Thank you for attending!

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