January 30, 2008

Reconciling to Banner

Reconciliation Purpose

Ensure proper accounting records are maintained

Confirm correct accounting transactions were posted to your account

Verify accuracy of amounts paidIdentify outstanding transactions

(encumbrances pending to liquidation)Obtain accurate account status

What is a Reconciliation?Match two sets of records to ensure figures

are in agreementExample: Match your records of requisitions

prepared to the expense and encumbrance transactions posted to the Banner system

Identify differences between the two sets of records. Reasons for difference might be:Posting errorsValid changes to the original amount

requestedTiming differences which will clear with time

Reconciliation Benefits

Discover erroneous transactions

Provide reliable status of your budget

Allow better decision making

May increase an organization’s available budget by clearing outstanding transactions

Example

Budget Expense Encumbrance

AvailableBalance

1) 1,000.00 $1,000.00

$1,000.00 $0.00 $0.00 $1,000.00

1) Setup budget

Example

Budget Expense Encumbrance

AvailableBalance

1) 1,000.00 $1,000.00

2) 100.00 $900.00

$1,000.00 $0.00 $100.00 $900.00

1) Setup budget2) Order supplies for $100.00

Example

Budget Expense Encumbrance

AvailableBalance

1) 1,000.00 $1,000.00

2) 100.00 $900.00

3) 100.00 -100.00 $900.00

$1,000.00 $100.00 $0.00 $900.00

1) Setup budget2) Order supplies for $100.003) Pay order of supplies for $100.00

Example

Budget Expense Encumbrance

AvailableBalance

1) 1,000.00 $1,000.00

2) 100.00 $900.00

3) 100.00 -100.00 $900.00

4) 500.00 $400.00

$1,000.00 $100.00 $500.00 $400.00

1) Setup budget2) Order supplies for $100.003) Pay order of supplies for $100.004) Order consumables for $500.00

Example

Budget Expense Encumbrance

AvailableBalance

1) 1,000.00 $1,000.00

2) 100.00 $900.00

3) 100.00 -100.00 $900.00

4) 500.00 $400.00

5) 400.00 -400.00 $400.00

6) -100.00 $500.00

$1,000.00 $500.00 $0.00 $500.001) Setup budget2) Order supplies for $100.003) Pay order of supplies for $100.004) Order consumables for $500.005) Pay only $400 for order of consumables6) Disencumber remaining $100 of consumables order

Banner Transactions TypesOn Banner, the Field column on FGITRND can

help you determine the type of transactionOBD – Budget transactionRSV – Encumbrance transaction from a RequisitionENC – Encumbrance transaction from a Purchase

OrderYTD – Expense transaction from an Invoice, Journal

Entry or Feeds from other Banner systems (Student, Human Resources)“I” documents are Invoices“J” documents are Journal Entries“F” documents are Feed transactions

Tracking Encumbrances

All encumbrances should eventually clear when payment (invoice) is made.

On Banner, form FGIOENC provides you a list of all open encumbrances for an organization.

If you identify an encumbrance that should not be open

How to Get Started?

1. Obtain access to your department’s organizations

a. Download Banner Finance Access Request Form from Business Office website (http://www.southtexascollege.edu/businessoffice/index.html)

How to Get Started?

2. Become familiar with useful forms in Banner

a. FGIBDST – Summary of total adjusted budget, expenses, commitments and available balances by account code

b. FGITRND – Detail transactionsc. FGIOENC – List of open encumbrancesd. FGIENCD – Detail of transactions posted

against an encumbrance (original encumbrance, adjustments, payments)

e. FOIDOCH – Document history and detail of all documents associated to a specified document

Who to contact with Questions?

On Encumbrances (Requisitions or Purchase Orders)- Purchasing department (872-4681)

On Payments (Invoices) – Accounts Payable department (872-4609)

On Journal Entries – General Accounting department (872-4638 or 872-4650)

Exercise – Step #1

Update "Department Expense Log" with Purchase Order and Invoice document number if available. Banner form FOIDOCH allows you to find

all document history related to a document requested.

For example, if you enter a requisition number and click on next block, the form will display all the POs and Invoices issued for the Requisition entered.

South Texas College

Department Expense Log

Organization: 123456 STC Orgn Name

Operating

Requisition # Date Description Vendor Purchase

Order Invoice OriginalAmount Adjustment

RevisedAmount

1 R0000001 09/05/07 Supplies A00004444 P0000003   500.00    

2 R0000005 09/15/07 Computers A00001234 P0000005 I0000009 1,525.00    

3 R0000010 09/18/07 Printers A00058946     633.00    

4 R0000012 09/30/07 Journal Subscription A00002255 P0000011   125.00    

5 R0000014 10/04/07 Equipment rental A00008958 P0000022   55.00    

6 R0000022 10/13/07 Temporary staff A00055889 P0000025 I0000053 899.00    

7 R0000025 10/22/07 Advertising at The Monitor A00001146 P0000035   62.00    

8 R0000028 11/02/07 Sprint PCS charges A00002540 P0000018 I0000012 84.00    

9 R0000033 11/15/07 Books A00001308 P0000044 I0000025 323.00    

Step #1

Exercise – Step #2Identify changes to amount on original requisition and update "Department Expense Log" with necessary changes.

a. For items with a Purchase Order assigned only, review the "Detail of Open Commitments (Encumbrances) by Organization / Account Code" report to find changes on amount on original requisition.

b. For items with a Purchase Order and Invoices assigned, review both the "Detail of Open Commitments (Encumbrances) by Organization / Account Code" and "Detail of YTD Activity by Organization / Account Code" reports to find changes on amount on original requisition.

Note: Items identified as corrections needed on the "Department Expense Log" will be updated on this worksheet. Items identified as corrections needed to be made on the Banner system (such as Requisitions or POs that need to be dropped) will be identified on the Reconciling Items section of the "Reconciliation Worksheet".

South Texas College

Department Expense Log

Organization: 123456 STC Orgn Name

Operating

Requisition # Date Description Vendor Purchase

Order Invoice OriginalAmount Adjustment

RevisedAmount

1 R0000001 09/05/07 Supplies A00004444 P0000003   500.00 (50.00) 450.00

2 R0000005 09/15/07 Computers A00001234 P0000005 I0000009 1,525.00 25.00 1,550.00

3 R0000010 09/18/07 Printers A00058946     633.00   633.00

4 R0000012 09/30/07 Journal Subscription A00002255 P0000011   125.00   125.00

5 R0000014 10/04/07 Equipment rental A00008958 P0000022   55.00 10.00 65.00

6 R0000022 10/13/07 Temporary staff A00055889 P0000025 I0000053 899.00   899.00

7 R0000025 10/22/07 Advertising at The Monitor A00001146 P0000035   62.00   62.00

8 R0000028 11/02/07 Sprint PCS charges A00002540 P0000018 I0000012 84.00   84.00

9 R0000033 11/15/07 Books A00001308 P0000044 I0000025 323.00   323.00

Step #2

Exercise – Step #3

Make sure totals on "Department Expense Log" are updated.

South Texas College

Department Expense Log

Organization: 123456 STC Orgn Name

Operating

Requisition # Date Description Vendor Purchase

Order Invoice OriginalAmount Adjustment

RevisedAmount

1 R0000001 09/05/07 Supplies A00004444 P0000003   500.00 (50.00) 450.00

2 R0000005 09/15/07 Computers A00001234 P0000005 I0000009 1,525.00 25.00 1,550.00

3 R0000010 09/18/07 Printers A00058946     633.00   633.00

4 R0000012 09/30/07 Journal Subscription A00002255 P0000011   125.00   125.00

5 R0000014 10/04/07 Equipment rental A00008958 P0000022   55.00 10.00 65.00

6 R0000022 10/13/07 Temporary staff A00055889 P0000025 I0000053 899.00   899.00

7 R0000025 10/22/07 Advertising at The Monitor A00001146 P0000035   62.00   62.00

8 R0000028 11/02/07 Sprint PCS charges A00002540 P0000018 I0000012 84.00   84.00

9 R0000033 11/15/07 Books A00001308 P0000044 I0000025 323.00   323.00

10                 -

-

Total for all Requisitions 4,206.00 (15.00) 4,191.00

Step #3

Exercise – Step #4

On "Reconciliation Worksheet", update Banner Totals for Adjusted Budget, YTD Activity, Commitments, and Available Balance. These totals can be obtained from "Summary of Budget Status by Organization" report or directly from Banner form FGIBDST.

South Texas College

Reconciliation Worksheet

Organization: 123456 STC Orgn Name

Operating

Banner FGIBDST (or Summary of Budget Status by Organization report)  

   

  AdjustedBudget

YTDActivity Commitments

AvailableBalance

Banner Totals 10,000.00 2,833.00 1,567.00 5,600.00

   

   

   

Department Expense Log  

  Revised Amount Total for all Requisitions  

  Available Balance as per Department Expense Log  

   

Difference  

           

Step #4

Exercise – Step #5

On "Reconciliation Worksheet", update Revised Amount Total for all Requisitions from "Department Expense Log" worksheet. The amount for Available Balance as per Department Expense Log is calculated as follows:Available Balance as per

Department Expense Log

= Adjusted Budgettotal from Banner

- Revised Amount Total for all Requisitions

South Texas College

Reconciliation Worksheet

Organization: 123456 STC Orgn Name

Operating

Banner FGIBDST (or Summary of Budget Status by Organization report)  

   

  AdjustedBudget

YTDActivity Commitments

AvailableBalance

Banner Totals 10,000.00 2,833.00 1,567.00 5,600.00

   

   

   

  Department Expense Log  

  Revised Amount Total for all Requisitions 4,191.00

  Available Balance as per Department Expense Log 5,809.00

   

Difference  

           

Step #5

Exercise – Step #6

The Difference amount should be automatically updated once all the previous figures are updated. It is calculated as follows:Difference

= Banner TotalAvailable Balance

- Available Balance as per Department Expense Log

South Texas College

Reconciliation Worksheet

Organization: 123456 STC Orgn Name

Operating

Banner FGIBDST (or Summary of Budget Status by Organization report)  

   

  AdjustedBudget

YTDActivity Commitments

AvailableBalance

Banner Totals 10,000.00 2,833.00 1,567.00 5,600.00

   

   

   

  Department Expense Log  

  Revised Amount Total for all Requisitions 4,191.00

  Available Balance as per Department Expense Log 5,809.00

   

Difference (209.00)

           

Step #6

Exercise – Step #7

List all the items identified as corrections needed to be made on the Banner system on the Reconciling Items section of the "Reconciliation Worksheet".

South Texas CollegeReconciliation Worksheet

Organization: 123456 STC Orgn NameOperating

Banner FGIBDST (or Summary of Budget Status by Organization report)  

   

  AdjustedBudget

YTDActivity Commitments

AvailableBalance

Banner Totals 10,000.00 2,833.00 1,567.00 5,600.00            Department Expense Log  

  Revised Amount Total for all Requisitions 4,191.00

  Available Balance as per Department Expense Log 5,809.00    Difference (209.00)           

Reconciling Items (Corrections needed to be made on the Banner system) Document # Action Needed Original Amt Revised Amt

R0000012 Drop Requisition (125.00) 125.00

P0000018 Drop PO (84.00) 84.00 -

Total Reconciling Items 209.00

Step #7

Exercise – Step #8

Once all the Reconciling Items are identified the Reconciled Difference should be zero. If it is still not zero, you will need to go back to the steps listed above to make sure all items were correctly identified.

South Texas CollegeReconciliation Worksheet

Organization: 123456 STC Orgn NameOperating

Banner FGIBDST (or Summary of Budget Status by Organization report)  

   

  AdjustedBudget

YTDActivity Commitments

AvailableBalance

Banner Totals 10,000.00 2,833.00 1,567.00 5,600.00            Department Expense Log  

  Revised Amount Total for all Requisitions 4,191.00

  Available Balance as per Department Expense Log 5,809.00    Difference (209.00)           

Reconciling Items (Corrections needed to be made on the Banner system) Document # Action Needed Original Amt Revised Amt

R0000012 Drop Requisition (125.00) 125.00

P0000018 Drop PO (84.00) 84.00 -

Total Reconciling Items 209.00

Reconciled Difference -

Step #8

Questions?