An Example of How to Process Month End Accounts

7/29/2019 An Example of How to Process Month End Accounts

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How to Run

Month End


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How to Run Month End

Contents

1. Introduction 3

2. Purchasing2.1 Month-End Guidance 5

2.2 Open Purchase Order Report (UFS) 5

2.3 Cancelling/finally closing purchase orders 10

2.4 Returning goods on the system 10

3. Accounts Payable3.1 Month-End Guidance 11

3.2 Supplier Statement Reconciliation 11

3.3 Invoice Register (UFS) 153.4 Invoice on Hold Report (UFS) 16

4. Accounts Receivable

4.1 Overview of Accounts Receivable, Internal Trading & Banking 184.2 Month End Guidance 18

4.3 Incomplete Invoices report 19

4.4 Unapplied Receipts Register 21

4.5 Ageing 7 Buckets By Account (UFS) 22

5. Inventory5.1 Month-End Guidance 24

5.2 Inventory Value Report 24

5.3 Material Account Distribution Detail report 25

6. Fixed Assets6.1 Month End Guidance 27

6.2 Departmental Fixed Asset Report 27

6.3 Asset Additions Report (UFS) 28

7. Grants7.1 Month End Guidance 30

7.2 Expenditure posted to Dummy Suspense grants 30

7.3 Reviewing Funds check failure 31

7.4 Unposted Pre-approved Batches 31


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Appendices Examples of ReportsA Open Purchase Order Report UFS 42

B Unapproved Invoice Register CAPSA 44

C Invoices on Hold Report (CAPSA) 45

D Incomplete Invoices Report 46

E Unapplied Receipts Register 47

F Ageing- 7 Buckets-By Account Report 48G Inventory Value Report 49

H Material Distribution Detail Report 50

I Departmental Fixed Asset Report 51

J Annual Additions Report (UFS) 52

K Budget Comparing to Actual Report (CAPSA) 53


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1. Introduction

This reference manual is designed to complement the Month-End Procedures published

in Chapter 10 of the Financial Procedures Manual.

It expands on these guidelines and includes for each of the reports detailed:

Their purpose How to run them

Guidelines on interpretation Subsequent action that may be requiredIncluded in the Appendices is also an example of each report with some further pointers

regarding interpretation. An electronic version of this manual is also available at:

http://www.admin.cam.ac.uk/offices/finance/training/manuals/

It is designed so that users have the choice of either downloading the whole manual orjust the guidance relating to a particular module. If you experience any problems with

the download please contact the Finance Training Team on extension 66631.


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Module Report Name When to run?

PURCHASING Open Purchase Orders Report (UFS) QuarterlyBefore the 4th working day

ACCOUNTS

PAYABLEInvoice Register (UFS) Monthly

Before the 4th working day

ACCOUNTS

PAYABLEInvoice on Hold Report (UFS) Monthly


ACCOUNTS

RECEIVABLEIncomplete Invoices Report Monthly


ACCOUNTS

RECEIVABLEUnapplied Receipts Register Monthly


ACCOUNTS

RECEIVABLEAgeing 7 Buckets By Account

Report (UFS)

MonthlyBefore the 4th working day

INVENTORY Inventory Value Report (UFS) MonthlyAfter the 4th working day

INVENTORY Material Account Distribution DetailReport (UFS)

MonthlyBefore the 4th working day

FIXED ASSETS Department Fixed Asset Report (UFS) QuarterlyAfter the 8th working day

FIXED ASSETS Department Asset Additions Report

(UFS)

QuarterlyAfter the 8h working day

GRANTS GMS:Award Status Report by

Department (UFS)

QuarterlyBefore the 4th working day

GENERALLEDGER

Budget Report Comparing to Actual(UFS)

MonthlyOnce Financial Accounts have

notified users (via the

Bulletin) that all processing

has been completed

normally after the 8th working

day


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Month-End Guidance - Purchasing

Each month end run Open Purchase Orders Report (UFS)to identifyincomplete purchase orders and close purchase orders by receiving goods or

matching against the invoice/cancelling the order.

2. Purchasing

2.1 Month-End Guidance: Purchasing

An overview of the purchasing cycle is given as follows:Supplier Receipt Payment to

Requisition Selection Purchase Order Goods/Services Supplier

Although raising a purchase order creates a commitment on UFS, once goods/services

have been received then this becomes a legal obligation to pay the supplier. Prior to the

month-end we should establish that any incomplete purchase orders are actioned and

closed.

2.2 Open Purchase Orders Report (UFS) Monthly

This is a new report that has been designed to make it easier for Departments to identify

and clear out unwanted purchase orders/lines. It is an enhancement of the old Open

Purchase Orders (By Buyer) (CAPSA) reportand it provides users with:

Additional Search Criteria Improved layout Choices regarding the level of detail required

Background

Raising an

internal

purchase

requisition

Quotations

Contracts

Pre-Suppliers

Raise Purchase

Order

Receive Goods

and Services

Purchase

Invoice

Payment


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Depending on whether 2-Way or 3-Way matching was selected when the Purchase

Order was raised, it will have one of the following statuses:

3 Way Matched POs 2-Way Matched POsStatus Explanation Status Explanation

Open PO Raised only

funds committed

Open PO Raised only

funds committed

Closed for Receiving Goods have been

received on the

system

Closed for Invoicing Invoice matched to

PO but 100% was

not entered in the

Receipt Close

Tolerance box

Closed for Invoicing Invoice matched to

PO but goods not

received on system.

Closed (will not appear

on report)

Fully matched

Closed(will not appear

on report)

Fully matched and

received.

Finally Closed (will not

appear on report)

PO has been

manually closed to

remove

commitment.

Finally Closed (will

not appear on report)

PO has been

manually closed to

remove commitment

Why this report is useful

It lists all the Purchase Order lines that have not been fully received or fully matched to

an invoice and will assist in identifying where goods need to be received onto the

system, or order lines need to be cancelled or finally closed.

This report should be run at the very least on a quarterly basis (although it could alsobe run more frequently if you wish) as a standard housekeeping task.

Departments who place a large number of Purchase Orders against research grants

would benefit from running this report as it contains useful information with regards to

funds checking and commitments.

Additional search criteria

SLS Department So that the report can be run by Central Finance for a specific

Department.

Creation Date From/

To

So that open Purchase Orders can be tackled by date.


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Levels of Detail

Show Summary Info Analyses and summarises the results by buyer, month, dept, Project

related, PO type.Show Detail Info Outputs Line/ Shipment level detail.

Report Breaks User can optionally choose to section the report by buyer, or vendor

name

How to run this Report

You can run this report under PO Buyer responsibility. In the Report Parameters if youaccept the default parameters you will obtain a complete picture for your department

across all buyers.

Rather than automatically print off a hard copy of your report, run it to screen

first and check to see how many pages it is. If it is exceptionally long you might

want to specify extra parameters such as creation dates or Project orders to

If you wish to investigate

particular cost centres that the

Purchase Orders have been coded

to, you can enter them here

Buyer or

Vendor

Optional

Whatever

you type herewill appear at

the top of

your report


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Creation Date From

Creation Date To Optional (none, one, or both) Purchase Order Creation Date range in the format DD-MON-

YEAR

Buyer Optional An individual buyer can be entered or selected from the list of

values.

Vendor From/ To Optional An individual vendor can be entered or selected from the list of

values.

From/To Cost

Centre Optional An individual cost centre can be entered or selected from the list

of values.

Select Only Project

Orders

No = Selects all Purchase Orders.

Yes = Selects only Project related Purchase Orders.

Show Summary Info Analyses all Purchase Orders reported on by Type, Department,

Creation Month and Buyer.Yes = Show Summary analysis, and PO Header information

(see Example 1)No = Show PO Header information only

(see Example 2)

Show Detail Info No = Does not show Line and Shipment information.

Yes = Shows Line and Shipment information.

(see Example 3)

Report Breaks An optional field that divides the report into sections:

Left blank No sections.

Buyer Name Sections report by Buyer Name

Vendor Name Sections the report by Vendor Name.

Glossary of Purchase Order Status

See Appendix A for an example of this report


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STATUS

NAME

WHAT THIS MEANS & ACTION POINTS

Closed

for

Invoicing

An invoice has been entered in the Accounts Payable module and has been matched

to a Purchase Order BUT the goods have not been received against the Purchase

Order on the system. There could be two reasons why this has happened.

1) The Purchase Order had two-way matching selected, but the receipt closetolerance was not changed to 100%.

In this case, the goods can either be received on the system and the order willautomatically close; or

the Purchase Order can be Finally Closed manually (See Instructions overleaf).2) The other scenario, which will result in this status, is where the full quantity ofgoods originally ordered have not been received but they have been paid for, as

there was an invoice for the full quantity. A hold must have been over-ridden on

the invoice in the AP module, to do this.

In this case the buyer must check that they have definitely received the fullquantity and receive the remaining items on the system.

If the full quantity has not been physically received, then we have over-paid thesupplier who will need to issue you with a credit note.

Once the credit note has been processed, the relevant line can be Finally Closed.Open There are three circumstances where a Purchase Order/ line will remain Open.

1) If the order is recent and delivery of the goods is still awaited,

no action needs to be taken, although you may wish to prompt your supplier.2) If the order was placed some time ago and, due to a change in

circumstances, no goods have ever or are ever to be received against it, then the order must be cancelled (see instructions overleaf).3) If some of the goods have been received, the Purchase Order line will still be

shown as Open on the report. You will need to check that you have paid for the items

you have received (i), but cancelled any remaining items that you no longer expect to

receive (ii).

i) To check that the quantity received equals the quantity billed, enter theShipments screen of the relevant Purchase Order line and select the Alternative

Tabs blue box that says Shipments. Select Status from the pull down menu

that appears and a screen showing the number of items received and the number

billed will appear. This Status screen is a useful tool for checking and

confirming, in detail, the information given in the Open Purchase Order Report

ahead of carrying out any procedures some of which can not be reversed


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2.3To cancel/ finally close a purchase order or purchase order line Open the Purchase Order Summary screen and query back the Purchase Order to be

cancelled. Please note that only Purchase Orders with the status Approved can be

cancelled.

Click on the menu bar under Special/ Control and highlight the line CancelPurchase Order or highlight Finally Close, depending on what you are doing.

Click OK. You will receive a message indicating that you commitment has beenremoved. Review the message and continue to cancel this order.

To Finally Close a line (only to be carried out when fewer goods have been billedand received than originally ordered) follow the same procedure as above and select

Finally Close instead of Cancel Purchase Order.

2.4 To return goods on the system Using the PO Receiver responsibility, navigate to the Returns form and open it. In the Find Returns window, enter the Purchase Order number you wish to return on

and click Find

If you wish only to cancel a line of a Purchase Order, select the button that is

marked Lines at the bottom of this screen to show each line of the Purchase

Order. The screen that appears will allow you to cancel individual lines.

Please ensure that you select the appropriate line before proceeding.

You must enter a reason for canceling the order/ line for future audit purposes

as the PO number will not be deleted from the system but remain with a status

of cancelled.

Make sure that you actually want to Cancel or Finally Close the order before

proceeding with any of these instructions. As once either of these actions have

been carried out they can not be reversed.


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3. Accounts Payable

3.1 Month End Guidance

Accounts Payable (AP) describes the procedure for processing supplier invoices and

employee expense claims, and other disbursements processed via the AP module. A

summary of the AP cycle is given as:

Invoice Entry Coded to an Account Approval Payment

Enter InvoiceUsing the

Batching

System

MatchingInvoices to

Purchase

Orders (where

raised)

~coded directly

to relevant

account/project

Primary andSecondary

Approval of

Purchase

Invoices

Payment ofSupplier/

Employee by

Cheque:

Finance

Division

Month-End Guidance Accounts Payable

Validate all AP invoices for the month (this is ongoing). Review supplier statements and check all invoices are secondary approved/or

current (ie. not due for payment).

Review employee expense claims/advances to ensure they are up-to-date andprocessed

Review credit card statements to supporting receipts/vouchers and journalexpenditure from the department suspense account to relevant cost centre.

Run Invoice Register (CAPSA) report to identify invoices not primaryapproved.

Run Invoices on Hold (CAPSA) Report to list invoices placed on hold and thenaction all holds, as necessary. Since the upgrade to 11i in December 2004 there should no longer be any

invoices that are coded to a project which become unapproved as a result of

the AP Tie Back process.


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How to run this report

To run this report you need to follow the options set out in the box below.

Using the Find Invoices screen enter the suppliers name and the date range that youwant to find.

You should get a list that looks something like this:

Navigate AP Responsibility Enquiry Invoices


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To make the report easier to work with it is recommended that you export the results

into excel. This can be done by clicking on File and selecting the Export option.

Whilst the system exports your data from UFS into Excel you may get a bar acrossthe screen telling you how far through the export the system is:

Once the system finishes exporting your data into excel you should get thefollowing screen pop up, click the Open this file from its current locationoption (as shown below) and click the OK button. (In some cases you may not

be asked this but your data will appear automatically in excel)


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You should then get the following window come up. Highlight Excel (Using yourmouse) and then click OK. Microsoft Excel (version 2000) should open

automatically and your information should be exported into spreadsheet (this can

take a few minutes depending on the size of your list).

Once in Excel you can manipulate the data how you want (Move columns, delete

columns etc.).Note: You may need to widen the width of some columns to view all theinformation, it will sometimes appear as #####, if you can not see everything

contained in the field. If you want the list in date order highlight the whole sheet, by

clicking your cursor in the top left hand corner of your spreadsheet. Then use Data

Sort, select Invoice Date and click OK.


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3.3 Invoice Register (UFS) Monthly


An important part of month-end for Accounts Payable is to ensure that all batches/APinvoices to be included in the current months accounts have been completed. This

report will list all invoices that have not been through PRIMARY (i.e. First level)

validation.


The following parameters should be selected

Please Note: If you are in a Central Department, if you run this report you willget every Unapproved AP Invoice across the entire University. The Finance Division

will produce a separate report on your behalf, showing just your own departments

entries, this will be sent to you, in order for you to carry out your month-endprocedures.

See Appendix B for an example of this report

You can use

this report at

other times to

list all the

distributions

for a batch of

invoices, by

batch name or

processors

name.

By changing

this to NO

you will get

all invoices.(Ok if you are

limiting

report to a

single batch)


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3.4 Invoice on Hold Report (UFS) Monthly

Why this report is usefulThis report shows all the AP invoices on hold within your department listed by hold

name. These invoices will not be paid until the hold is resolved and/or overridden.

The following are some of the most common holds found on invoices within Accounts

Payable.

Hold

Name

What does it mean? How did I get it? Over ride?

Credit

Note

Your invoice is on hold

awaiting a credit note

Someone in your department

has manually put this hold on

your invoice

Yes you can manually over

ride this hold

Internal

Dispute

Internal Trading Invoice

that is being disputed

Someone in your department

has manually put this hold on

your invoice

Yes you can manually over

ride this hold

Qty Rec. The quantity you have been

billed for on your invoice

exceeds the quantity you

have received on the

system

Maybe you have only part-

received this order. Or some

items have been sent back.

Need to receive the goods

on the system if the receipt

has been overlooked. Get a

credit note if goods sent

back or no longer required.

You can manually over ride

this hold.

Tax

Difference

The tax name on your PO is

different to that on your

invoice

Either the wrong tax name

was entered on the PO or the

invoice

You will need to check and

amend the invoice

distributions. You canmanually over ride this

hold.

Price The price of the invoice is

different or exceeds the

price that was on the PO

Either the wrong price was

entered onto the PO or the

invoice is wrong.

Check with the Buyer

and/or Supplier. You can

manually over ride this

hold.

Qty Ord. The quantity that you have

been billed for on theinvoice exceeds the

quantity that was originally

ordered.

Was the invoice for several

POs and only been matchedto one? The original PO may

have been incorrect.

Check with the Buyer.

Match against other POs ifnecessary. You can

manually over ride this

hold.

Final

Matching

There is a Final Match hold

on this invoice

You ticked the Final Match

box in the Match screen.

Contact The Accounts

Payable Helpdesk. This


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Action points from this report

All invoices on this report should be investigated. Where the holds are valid and current, efforts should be made to enable the invoice

to be released from hold. Holds for any other reason are to be released to enable the invoice to be paid or the

invoice should be cancelled.

Once all holds have been released, the report should be ran again to ensure allinvoices are processed prior to the financial year end.

See Appendix C for an example of this report

If you are a

CentralDept. you

must enter

your Dept

Code in

here

Leave blank

when runningreport at year-

end. But can

be used when

running thereport as a

house-

keeping tool.


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4. Accounts Receivable

4.1 OverviewAccounts Receivable concerns income generated from sales for services rendered and

involves the following steps.

Send to Debt

Invoice Customer Receipts Management

It will be necessary to raise sales invoices promptly to ensure income is collected

quickly.

4.1.1 Internal Trading

Internal Trading refers to inter-department (internal to the University) purchases andsales when one department trades (sells goods) to another department.

Dept A Dept B Finance Division

Sales Invoice Action Invoice Reviews

Disputes

4.1.2 Banking

It is important to ensure that all monies (cash and cheques) received during the month

are banked and receipted promptly and at least weekly. It will also be necessary to

balance your petty cash float for the period

Raise Sales

Invoice

Invoice Sent to

Customer

Income

Collected and

Receipted

Credit Control

Statements/

DunningLetters

Raise Internal

AR Invoice

Locate Internal

AP Invoice on

UFS, code toappropriate

Dept account

& approve.

Finance

Division

ReviewsMatching of

AP and AR

Invoices

When invoices are disputed, queries should

be resolved by referring to Head of

Department in the first instance. Final

Arbitration is with the Finance Division


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4.3 Incomplete Invoices Report Monthly


This report will show all the sales transactions that are currently incomplete on the

system; they will all require some further action by the Department.


Run Unapplied Receipts Register to identify any receipts unapplied to specificinvoices and match these receipts to the invoices report.

Run Aging 7 Buckets by Accounts report to show invoices with no remittance,and review use for credit control.

Review and write-off bad debts (with the Head of Department approval).Internal Trading

Raise Internal Trading AR invoices promptly to departments in accordancewith agreed terms.

Process Internal Trading AP invoices promptly (within the same month ifpossible)

Review and agree Internal Trading invoices in dispute and refer to arbitrationas necessary.

Banking

Complete all receipt batches for cash and cheques received on or before thelast day of the month.

Run the Receipt Register report for cash receipt batches. Arrange for banking of all monies received up to the last day of the month

(including vending machines, photocopier sales, pay phones, key deposits).

Claim BACS receipts/bank transfers from the weekly Finance Divisionspreadsheet. Process monthly petty cash journal for balancing your petty cash float.


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Each Invoice on this report will have to be reviewed and one of the actions detailed on

the following page carried out.

TYPE QUESTION INSTRUCTIONS/COMMENTS

VOID Is this invoice no

longer required?

Does the Void needcompleting?

Void and complete the invoice according to the

normal procedure. NB: You will get a message

asking you to Rerun AutoAccounting?

Click on Yes and Complete.

If so complete the Void in the normal fashion.

CREDIT

OR DEBIT

Was the credit/debit

memo not completed

because you made an

error on it or it was

raised by mistake?

If yes

Void and complete the credit/debit memo

according to normal procedure.

If no,The credit/debit memo should be completed and

then matched to the appropriate invoice (or

credit/debit memo).

INVOICE Was this an invoice Void and complete this invoice according to the

Please Note: If you are in a Central Department, if you run this report you willget every Incomplete Invoice across the entire University. The Finance Division will

produce a separate report on your behalf, showing just your own departments

entries, this will be sent to you, in order for you to carry out your month-end

rocedures.

See Appendix D for an example of this report


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4.4 Unapplied Receipts Register Monthly

Why this report is usefulThis report will list receipts that are showing against a customers account, but that have

not been applied to a specific transaction (Sales Invoice). Receipt Batch status will be

OPEN when investigated but should be CLOSED wherever possible. The Batch will

close once all of the Receipts have been applied within the batch.

How to run this reportThe following parameters should be selected to run this report

Please Note: If you are in a Central Department, if you run this report you willget every batch with an unapplied receipts across the entire University listed. TheFinance Division will produce a separate report on your behalf, showing just your

own departments entries, this will be sent to you, in order for you to carry out your

year-end procedures.


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Start Here

4.5 Ageing 7 Buckets By Account Report (UFS) Monthly

Why this report is usefulThis report will show all your Sales Invoices that you have not received remittances for,

it will list all your past due invoices and group the outstanding amount by bucket (time

period). It will also give you an overall figure for all your departments external debtors.


The following parameters should be selected

Query back the

Receipt Batch and

locate the unapplied

recei t

Can the money/funds be

applied?

NO

YES

Having drilled down to the

receipt. Apply the funds to a

transaction (Sales Invoice).NB

it may be necessary to create a

Debit Note in order to have

somewhere for the funds to be

applied against.

Was it an overpayment?

YES NO

Verify that the

amount should

be carried

forward for

future

allocation

Make arrangements

in the AP module to

refund your

customer. (Guidance

on this is available

through the AR

Helpdesk)

Completethe

parameters


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All outstanding transactions should be investigated All outstanding transactions should be followed up with either

i. Phone Callsii. Statements

iii. Dunning LettersContact the AR Helpdesk for advice on printing statements and dunning letters if

required.

What If a Customer has already paid?

It may become apparent that Customer has already paid their outstanding debt.

Review any receipts previously received from Customer (funds may havebeen allocated against the wrong invoice or directly against a G/L code)

Review the unallocated BACS spreadsheet sent out from Central Financeeach week.

If the funds have been received, but

a) wrongly allocated;

or

b) not yet claimed.

Make arrangements to apply the funds against your Customers outstanding

transaction(s) (further guidance on claiming BACS receipts or re-allocating existing

receipts is available from the AR Helpdesk / Central AR).


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5. Inventory


These procedures only apply to departments using the UFS Inventory module. It will be

important for the departments with stores to ensure an accurate record of stock is

maintained and that stock is allocated accurately within the department.

Receipt Issue Review Reconcile

5.2 Inventory Value Report Monthly


This report details the stock value at the end of the period and should be reconciled to

the general ledger inventory codes (the T range of transaction codes). It gives abreakdown of the stock item by item detailing item code, description, unit cost, quantity

(which should agree to the stock take) and the total valuation.


N h i i i l d h d ll h i i d i h d f l

Month-End Guidance Inventory Complete all inventory issues and receipts made during the month (ongoing

process during the month).

Undertake monthly stock-take or cycle count if appropriate Run Value of Inventory report to review stock items and see overall stock

position

Run Material Distribution Retail Report showing issues of stock items with thedepartment.

Receive the

goods in tostores

Issue

individualitems out of

stores

Review stock

levels

Reconcile

Inventory andGL modules


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5.3 Material Account Distribution Detail Report

Why this report is usefulAs well as giving the stock value at the end of the period this report details all the

receipts, issues and adjustments into the inventory value account.


It is possible to run this report for each cost centre and thus give a concise report for all

stock movements.

Accept allof the

default

parameters


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Action Points from this report

Use this report to reconcile the inventory value report to the general ledger making

adjustments for invoice price variances.

See Appendix H for an example of this report

H R M h E d


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6. Fixed Assets


Departments will wish to monitor their fixed assets using the Fixed Assets module from

time to time. In order to maintain the universitys Fixed Asset Register, departments

must ensure that when processing AP invoices, that for Fixed Asset purchases, to tick

the Track as Asset box.

Finance Division Finance Division

Departments Fixed Asset Addition Fixed Asset Capitalised

6.2 Departmental Fixed Asset Report


This report allows a department to see information pertaining to all of its non-retired

assets. Examples of such information include the Cost, Depreciation and Net Book

Value (as of the last Mass Additions process run); the Vendor; the Purchase Order; and

the Invoice Number

AP Invoice

Processed Tick

Track as Asset box

Details listed in

holding area of the

Fixed Asset Module

Fixed Asset is

capitalised and

journals created in

General Ledger

Month-End Guidance Fixed Assets

AP Invoices: tick Track as Asset box all fixed assets > 750 (on-goingprocess).

Notify Finance Division (via Fixed Asset Helpdesk) of any fixed assets disposalsduring the month.

Review the Departmental Fixed Asset Report for accuracy, to departments by theFinance Division.

Run the Asset Additions (UFS) report to check new additions during the quarter(not monthly).

H t R M th E d


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Complete both of the parameters, remembering to include your department code. If this

field is left blank you will receive a report of all the Universities assets.

Action Points

If you have any concerns about the completeness of the asset list for your department

then run the Annual Additions (UFS) report to double check that any new acquisitions

have been included.

Notify any omissions or adjustments to the Fixed Asset Helpdesk who will make the

adjustments for you in the subsequent month.

6.3 Annual Additions Report (UFS) Quarterly


This clear and concise report identifies assets purchased in a department during any

specified time period (not just a year). It displays:

asset number and description date taken into service -normally the purchase date original cost

Note: it is particularly vital that assets over 10,000 are identified so that they may be

capitalised in the Universitys accounts. This means that depreciation will be

calculated and thus their cost spread out over a number of years.

See Appendix I for an example of this report

The only optionavailable from the

list of values



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Action Points

Review the report for completeness. If you discover that a recent asset purchase has notbeen included (or alternatively an item has been included on the register by mistake)

please contact the Fixed Asset Helpdesk who will make the adjustments for you in the

subsequent month.

See Appendix J for an example of this report



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7. GRANTS MODULE


The Grants Module records expenditure and income for the Universitys research grants

and contracts. Research grants are governed primarily by the length of the grant rather

than accounting periods (months), and therefore departments will need to be pragmatic

when considering their month-end procedures.

7.2. Expenditure Posted to Dummy Suspense Grants Monthly

Some types of costs that are imported into the Grants Module, such as payroll, are not

validated until the import process is run. Oracle Projects rejects expenditure if the item

fails the validation and therefore the expenditure is not imported onto the project.

Included in the standard validation process are checks to make sure that the:

expenditure item date falls within the project dates the project status allows transactions transaction controls set allow the type of charge being made

Month End Guidance Grants

The following tasks should be undertaken monthly

Review expenditure posted to your dummy suspense grant and re-postexpenditures to clear the dummy grant to zero

Review and clear funds check failures Check for unposted pre-approved batches Correct VAT errors as advised by the Tax & Property Finance Section

The following task should be undertaken quarterly

Check the status of all grants and take action to correct erroneous items/resolveoverspends and underspends



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ow to un onth nd

All expenditure items posted to these suspense projects will retain the original

expenditure date. The comments field will contain the original project, award and task

number that the department intended to charge and the reason for rejection.

Expenditures can be transferred from the suspense project using the Tools andTransfer function available in Expenditure Enquiry. At month end departments should

ensure that postings made to their suspense grant have been correctly charged out to

the appropriate grants to leave a zero balance.

7.3 Review Funds Check Failures Monthly

Miscellaneous transactions (journals) and costs that are imported into the grants module(e.g. payroll) are funds checked in the grants module. If there are insufficient funds the

expenditure item will appear in the expenditure enquiry screen but will not be processed

and will be flagged as a funds check failure. Expenditures that have failed funds

checking will not transfer to the G/L.

How to Identify Funds Check Failures in the Grants Module

Please refer to the Funds Checking guidance notes on the UFS Research Services webpage http://www-capsa.admin.cam.ac.uk/researchgrants/docs_rsg/

Resolving Grants Module Funds Check Failures1. Check the budget and available funds by viewing the Funds Check Results

Budget Screen available to Grants Administrators

2. If the budget or budgetary control setting needs to be changed please contactyour Awards Administrator in the Research Finance Group

3. If there are no available funds the transaction may need to be transferred fromthe grant, please discuss this with your Awards Administrator before entering

any journals.

7.4 Unposted Pre-Approved Batches MonthlyAt month end please ensure that all grants module pre-approved batches (journals) have

been posted (submitted and released). Please refer to the guidance notes on the UFS

Research Services web page to check that all batches have been posted

http://www-capsa.admin.cam.ac.uk/researchgrants/docs rsg/



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posted to in your accounts ready for correction. You will need to enter a Pre-Approved

Batch (journal) in the Grants Module to transfer the VAT adjustment from this G/L

code to the project that it relates to.

The VAT adjustment will be posted to your departmental research cost centre, onto thesource of funds and transaction code below

Example: **AG.AAAA.EZZM (where ** is your department code)

Quick Reference Guide

1. In Accounts Payable look up the invoice number and make a note of the researchgrant distribution codes (project, award task etc)

2. In the Grants module set up a Pre-Approved batch header3. Enter journal lines to transfer the VAT adjustment from the G/L code it has been

posted to (**AG.AAAA.EZZM) onto the Grant it relates to.

If your G/L code has been debited you will need to debit the Grant and credityour G/L code.

If your G/L code has been credited you will need to credit the Grant anddebit your G/L code.

4.

Save your journal and submit and release.

For further advice on entering Pre-Approved batches please refer the CUFS Research

Grants web page http://www-capsa.admin.cam.ac.uk/researchgrants/

7.6 Month End processing Monthly

There are several processes run at month end in order to reflect all expenditures onto the

grants:

Monthly payroll imports Overheads (Fixed and Variable) Pooled Labour Telephones Inventory

Posting of Payroll Charges

The payroll is processed on the legacy system; the charges are imported into the Grants

Module and directly into the GL. They are imported anytime between confirmation that

Payroll has done the transfer to the GL and the last working day of the month.



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Posting of Overheads

A grants process at the month end generates the overheads charges. The overheads are

posted as expenditure to the grant, which maps across to the G/L, split between the

Chest and Department share. The Department share is posted as a credit to the researchcost centre, source of funds EDAA, transaction code LZAA. Where the department has

grants from Research Councils and the overhead has to be accounted for separately, a

transfer is made to move the overheads from EDAA to source of funds ECAA.

Departments should spend their overheads directly from the source of funds code it is

posted to, using the correct item codes for the expenditure.

Variable overheads are set to run overnight on the last working day of the month. Fixedoverheads are run during the working day on the last working day of the month.

Posting of Pooled Labour

The pooled labour charges are generated by a grants process at the month end, being

posted as expenditure to the grant. The charge is generated from the budget awarded by

the sponsor, which is allocated over the life of the grant. The pooled labour credit due to

the department is posted to the research cost centre, source of funds ECAA and

transaction code AZZZ.

Pooled labour is run during the last working day of the month.

Telephone and Inventory

Telephones and Inventory costs related to Grants are imported on the last working day

of the month.

Posting of Grants Pre-Approved Batches (journals) to the G/L

When users enter pre-approved batches (journals) into GMS, a grants process will post

the G/L side of the batches into a G/L import table from where it is then imported into

G/L.

Expenditure lines to the same G/L codes will automatically be added together, along

with lines from other batches to the same G/L code with the same ending date, and

shown as a lump sum with the reference Projects. Drill down is available from the

G/L back to grants to view the entries or the Cost Audit Report can be ran for the

projects posting reference to obtain a listing of the entries.

More information regarding the posting of pre-approved batches, G/L drill down and

the cost audit report can be found on the CUFS Research Grants web page



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Expenditure for each Expenditure Category Budget Expenditure (actual) Commitments Total Cost (Actual plus Commitments) Funds Available


The report provides up-to-date details on awards including expenditures, amounts

committed and funds available. The report will only show the award and values if theuser is permitted to see this information. The report will provide totals at the task and

award level. The report provides an accumulative summary of each award and is useful

for checking expenditure and available funds.


From the Reports option (N Requests Submit Single Request) select GMS: Award

Status by Department (UFS). A Parameters box will appear. The report can berequested for all awards in the department or for a Principal Investigator (as below). To

request for all awards leave the Principal Investigator parameter blank.

This report currently runs overnight and when requested will appear as below in the

t t ti ll i i ht



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Parameters Explained:

Parameters:

From Award Organisation Enter or select your organisation from the list of

values

To Award Organisation Enter or select your organisation from the list of

values.

Award Number This should be left blank if you wish to review all

awards within a department

Principle Investigator Leave blankor select from the list of values toproduce a report by a named Principle

Investigator.

Include Closed Awards This defaults to No, change to Yes to include all

closed awards.

Show Details This defaults to No, however change to Yes to

show the following:

If the parameter is set to Y, then the reportwill show the expenditure, commitment andtotal cost by expenditure type, and budget and

funds available by expenditure category.

If the parameter is set to N, then the reportwill show the budget, expenditure,

commitment total costs and funds available by

expenditure category.

Funds Check Failures The default is Yes to include any Grants Module

funds check failures.

However, the parameter can be changed to:

No to exclude Funds Check Failures; or Only to only show Funds Check Failures.

Order By Select either, Award Number, PrincipalInvestigator or Project Number. If this field is left

blank the award status reports will be ordered by

Award Number.

Page Break Per Award This defaults to no (N), and can be changed to yes

(Y) if i l d i i d


8 G l L d


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8. General Ledger


The GL is at the heart of UFS, collating information from the sub-ledgers of all of the

Universitys financial transactions. The GL is used for processing journals, account

enquiries and running reports.

Note on Accruals and Prepayments: When preparing your departmental accounts,

accruals and prepayments can be used to:

more accurately reflect your financial position to monitor your final position.

At present Departments are not expected to accrue their income/expenditure until the

year-end, however, if the amounts are material then they should be processed on a

monthly basis. Advice is available from your Finance Adviser.

Month-End Guidance General Ledger

Pre-GL Close

Review any unposted GL journals. Take actions accordingly. Review and clear any departmental suspense accounts. Journal (or transfer) expenditure to match to correct source of funds. Review GL transactions for potential miscodings and correct as necessary. Review expenditure on Non-Recurrent grants to ensure not overspent. Review and monitor Trust Funds: Finance Division distribute Trust Funds

Statements monthly.

Review and process journals for Deposit Account movements.Post-GL Close

Run Budget Comparing to Actual (CAPSA) report to review the departmentstransactions and balances.

Review the Departments Summary Report distributed by the Finance Division.


The report does not show:


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The report does not show:

Commitments Total number of Amalgamated Fund Units held although these can be

found by running other GL reports such as the Transaction Code Balances

Report (CAPSA), and choosing STAT as the currency type.

If you run the report for all of your sources of funds, against all of your cost centres you

will see within the balances:

The balance of reserves held the brought forward balance plus or minus any

adjustments - look at Transaction codes starting

with an X

The balance for the year on all

income and expenditure codes

Including interest received from deposits /

amalgamated fund (AF) unit investments and any

unrealised gains and losses on AF units

The balance invested in deposits

and/or amalgamated funds

Transaction codes starting with a S - displayed in

sterling

The total received by the

department from the centre of all:

Estimates, Allocations Supplementary Allocations Warrants

Displayed in the form of annual budgets and year

to date budgets (i.e. phased over the financial

year).

How to run this report:

The example below shows the parameters that should be entered to ensure that all

possible account code combinations are included for your department.

'

Enter your

own

Department

Code



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Parameters explained

Parameter Options Notes

Period Name

from

Always select the

first month of the

year (e.g. Aug-04)

This report will only you to select the first month of

the financial year.

Period Nameto Choose the month inthe same financial

year for which you

want to run the

report for.

Do not select any periods that start as ADJ-

Dept Segment

value

Enter your

department two

letter ID code

The report balances for only one department at a time.

Primary Page

Break Segment Source of funds Cost centre Transaction

For the year-end report choose Source of Funds. This

primary page break is the main subtotalling choice

and the report will start a new page for every change

in source of funds.

Primary pagebreak segment

low/high

Put in a rangeanywhere from 0000

to ZZZZ

For a complete set of balances choose the range 0000to ZZZZ.

Secondary

Page break

segment

Cost centre Sources of funds Transaction

For year-end report choose cost centre. This

secondary page break choice means cost centre totals

will be displayed within each source of funds,

Secondary

segment

Low/High

Put in a range

anywhere from 0000

to ZZZZ

Again for completeness choose the full range 0000 to

ZZZZ. Importantly, a prior keying error may have

resulted in a balance on a cost centre where it is not

expected; also some opening balances were posted to

0000 cost centre.



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8.3 Financial Summary Reports

Each month Management Accounts forward to Heads of Departments a Financial

Summary Report for the department. It is also the report that will be sent out at YearEnd and which Heads of Departments will be asked to sign off.


This concise report represents the summarised financial position (by sources of funds)

for the whole department. It shows:

Budgets Income & Expenditure Cash position Investments: including money on deposit and Amalgamated Fund Units Balance Sheet entries e.g. petty cash, debtors and key deposits A reconciliation to UFS

Departments are unable to run this report themselves, however may be possible to

produce a version of this report run by cost centres as opposed to sources of funds. Ifthis is required please contact Financial Planning & Analysis.

Please note that at the end of the financial year Heads of Department will be required to

sign off the source of funds version.

Understandingthe ReportThe report lists all the sources of funds used in the department during the financial year

and is broken down into three main sections:

Income & Expenditure the position for thecurrent financial year

Overall Financial Position theaccumulatedfinancial position for each source of

funds inclusive of all investments and brought forward

balances

Memorandum is shown for completeness. The column Reconciliation

to UFS equals the column Variance YTD on the

UFS report Budget Report Comparing to Actual.

Income & Expenditure


expenditure.


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expenditure.

A total in brackets means the source of fundsis overspent.

A positive number is a favourable variance.

Overall Financial Position

This section represents the accumulated overall financial position for each source of

funds inclusive of money on deposit, Amalgamated Fund Units (AFU) and Other

Investments.

(Overdrawn) / Cash in Hand (5) This column represents the current cashbalance for each source of funds (i.e. excludingdeposit and Amalgamated Fund, which are

shown in columns 6 and 7).

A (deficit balance) here should be investigated.Total (9) =(5)+(6)+(7)+(8) This column is the total of cash in hand (or

deficit) and invested balances.

The total is important because it represents theoverall financial position for each source offunds.

A figure in brackets means a source of funds isin deficit.

Memorandum

Balance Sheet Entries This column represents items that are not

included in either the Income &Expenditure or the Overall Financial

Position sections. The Balances include

items such as petty cash, debtors and key

deposits.

Reconciliation to UFS The figures in this column are the same

as those in the Variance YTD column

on the UFS standard report calledBudget Report Comparing to Actual

(CAPSA).

Grand Total and Department Net Total

G d T t l Sh th b l f ll d t t l ti iti



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APPENDICES

Examples of Reports


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How to Run Mont


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- 43 -

Example 2: Report showing just the PO Header information

Po Number Release Creation Date Buyer Name Vendor Name Project Related

---------- ------- ------------- -------------------- ------------------------------ ---------------

12345 07-JUL-01 JONES, Mrs. K SIMPLY LTD Y

56789 25-NOV-01 JONES, Mrs. K SIMPLY LTD Y

12123 31-JAN-02 JONES, Mrs. K UNIVERSITY COMPUTING SERVICE Y

24680 27-FEB-02 JONES, Mrs. K TRANSTEC COMPUTERS LTD Y

Example 3 :Report showing detailed Information for order lines and shipments

Po Number Release Creation Date Buyer Name Vendor Name Project Related

---------- ------- ------------- -------------------- ------------------------------ ---------------

12345 07-JUL-01 JONES, Mrs. K SIMPLY LTD Y

Line Num Description Shipment Ordered Received Billed Unit Price Status-------- ------------------------------ -------- ---------- ---------- ---------- ---------- -----------------

1 ABC234K PII350MHz 256MB 10GB 1 1 0 0 2849.98 Open

56789 25-NOV-01 JONES, Mrs. K J SIMPLY LTD Y

Line Num Description Shipment Ordered Received Billed Unit Price Status

-------- ------------------------------ -------- ---------- ---------- ---------- ---------- -----------------

1 EZCD Creator Del 3 for Linu 1 1 0 0 156.5 Open


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How to Run Mont


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- 46 -

Appendix D: Incomplete Invoices Report

CAPSA Set of Books Incomplete Invoices Report Report Date: 21-MAY-2005 09:52Order By: Invoice Page: 1 of 8

--------------------Invoice--------------------- --------------------------------Customer---------------------------

Number Type Date GL Date Name Number

-------------------- ------- --------- --------- --------------------------------------------- ---------------------

1213 AG Inte 15-JUL-04 15-JUL-04 ESTATE MANAGEMENT & BUILDING SERVICES 1018

1271 AG Cred 08-AUG-04 08-AUG-04 CLINICAL SCHOOL IT SUPPORT 1119

1294 AG Cred 24-OCT-04 05-APR-05 FALL Mr D 794725770 AG Void 11-JUN-04 ANATOMY 1088

25950 AG Inte 13-JUN-04 13-JUN-04 ESTATE MANAGEMENT & BUILDING SERVICES 1018

26273 AG Invo 14-JUN-04 14-JUN-04 ADDENBROOKE'S NHS TRUST 12232

Transaction

Number

Dept. Code

and invoice

type

Customer Name and Number

Note that Voids do not hit the GL

How to Run Mont


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- 47 -

Appendix E: Unapplied Receipts Register

CAPSA Set of Books Unapplied Receipts Register Report Date: 22-MAY-2005 17:38GL Date From To Page: 1 of 51

Currency: All

Format Option: Detailed * - Unidentified PaymentEntity: U

Batch Batch Payment Payment On Account Unapplied

GL Date Source Name Method Payment Number Date Amount Amount

--------- -------------------- --------------- ------------ -------------------- --------- ------------------- -------------------

Customer Name: HUISH PLC Customer Number: 121212

01-DEC-04 Manual Receipts AG/01/12/04/B1 Cash AG/TJH/01/12/04/R3 01-DEC-04 0.00 66.35

------------------- -------------------

Total for Customer: HUISH PLC 0.00 66.35

Customer Name: JOES PLACE Customer Number: 10005

18-MAR-05 USDManual Receipts AG/18/03/05/B3 USD Cash AG/TJH/18/03/05/R1 18-MAR-05 0.00 31.98

Total for Customer: JOES PLACE ------------------- -------------------

0.00 31.98

Receipt Batch Name

Receipt Batch

Source

Individual Receipt

Number within the

Batch

Amount Left to be

AppliedNB: This

may not be the

whole amount of

the original receipt


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How to Run Mont


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- 49 -

Appendix G: Inventory Value Report

PK_Pathology Report Date: 06-JUN-2005 16:22

Sort by Item AFINVCST Page: 1Cost Type: Average Detailed (GBP)

Category Set: Inventory

Item

Item Description Status UOM Quantity Unit Cost Extended Value

--------------- ------------------ ---------- --- ------------ -------------- ----------------

AJ0009 OVERHEAD PROJECTION SHEETS A4 PER SHEET PACK/100 Active Ea 17.00 19.99 339.89

Subinventory Asset Description Rev Quantity Extended Value

------------ ----- -------------------------------------------------- --- ------------ ----------------

--------------------------------------------------------------------------

ASSET_PK Yes Primary Sub Inventory 17.00 339.89

AKA0015 PHOTOGRAPHIC FILM POLAROID 667 Active Ea 35.00 12.00 420.00

Subinventory Asset Description Rev Quantity Extended Value

------------ ----- -------------------------------------------------- --- ------------ ----------------

--------------------------------------------------

------------------------

ASSET_PK Yes Primary Sub Inventory 35.00 420.00

Headings wrap

around onto two rows

Item Code

Extended

Value could

be subject to

rounding

Quantity

Available

Average Unit Cost

calculated by the

system.

How to Run Mont


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- 50 -

Appendix H: Material Distribution Detail Report

PK_Pathology Report Date: 06-JUN-2002 16:22

Sorted by Account Material Account Distribution Detail(CAPSA) Page:314

GBP

Account: U.PK.PKAB.ADAA.TAAA.0000

Txn Date Item Description Reference Source Quantity UOM Unit Cost Txn Value

--------- -------- -------------- -------- -------------- ------------ --- ------------- ---------------12-JAN-01 UDE0011 GLOVES SILK PAIR PA15111 1:VIROLOGY -2.00 Ea 5.75 (11.50)

12-JAN-01 UDE0011 GLOVES SILK PAIR PA15101/PF46022 2:ZOOLOGY -1.00 Ea 5.75 (5.75)

12-JAN-01 UDEG0024 GLOVES - LATEX ANSELL PACK/100 pa15007 1:PROF C HUGHE -4.00 Ea 2.80 (11.20)

15-JAN-01 HEA0002 PAPER TOWELS CENTRE FOLD SPD135 44896 10.00 Ea 1.71 17.10

15-JAN-01 HAD0007 HAND CREAM E45 PA15179 1:MICROBIOLOGY -1.00 Ea 3.90 (3.90)

15-JAN-01 HAD0009 HAND CREAM VASELINE PA15179 1:MICROBIOLOGY -1.00 Ea 1.15 (1.15)

PO Number or

Alias used.

Transaction

Date

Item CodeTransaction

Value = UnitCost x

Quantity

NB: When viewing the Stock Account Transaction Code (TAAA as

shown in this example) a positive figure represents good received and a

negative figure represents goods issued. However, when viewing an Income

or Expenditure account code, a positive figure will represent the goodsissued from stock and a negative figure will represent goods returned to

stock.


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Documents

An Example of How to Process Month End Accounts