Docstoc

fy 1998 fiscal year end training

Document Sample
fy 1998 fiscal year end training Powered By Docstoc
					                              MISSOULA CAMPUS
                         FISCAL YEAR END PROCEDURES
                              PREPAID EXPENSES
                                                     1

Definition
Prepaid expenses are items over $100.00 that are paid during the current fiscal year but are
actual costs for the next fiscal year. All items or services must be received or provided after
June 30 to be considered a prepaid expense. These expenses are recognized as an asset
(prepaid) in the current fiscal year and as an expense in the next fiscal year. This process is
not applicable to Grants.

                                 Examples of Prepaid Expenses
          Airline tickets purchased for trips to be taken after July 1.
          Prepaid registration fees/hotel accommodations for conferences occurring after July 1st.
          Subscriptions or membership fees for next fiscal year.
          Prepaid maintenance fees (maintenance contracts) or software licenses for next fiscal year.
          Expenditure transactions, which are matched to deferred revenue (i.e., summer session).



                                           Procedures

Invoices
   University staff reviews payments for appropriate fiscal year. Payments identified as prepaid
    expenditures will require special coding on the invoice for proper data entry and edit. These
    are as follows:
              The first five digits of the commodity description should be the expense account
               code that should be charged in the new year (i.e. 62750 July Copier
               Maintenance).




             Index Code
             Account Code 1905 – Prepaid Expense
   Departments must submit supporting documentation to Katie Dalessio on or before noon
    Friday, July 10, 2009. Documentation must include:
             Copy of invoice that shows proof that the expense belongs to the new fiscal year
             Banner Document Number
             Index
             Expense Account Code
             Amount
   Accounting Services will run a report prior to June month-end to identify the transactions in
    account 1905. The documentation received from departments will be matched to the report.




                                            1 of 4                               updated March 2009
                             MISSOULA CAMPUS
                        FISCAL YEAR END PROCEDURES
                             PREPAID EXPENSES
    Departments will be contacted to provide the required documentation for any items on the
    report without a match. (If documentation is not provided, the item will be moved from the
    prepaid account to an actual expense account for the current year.)
   In July, Accounting Services will prepare a journal voucher to be entered in Banner to
    reverse the prepayments and record the expense in the new fiscal year. The JV is a debit to
    expense and credit to the prepaid balance sheet account 1905.

ProCard
   ProCard payments relevant to the new fiscal year will be recorded in BANNER to the
    appropriate balance sheet account 1905. Departments can code directly to 1905 for any
    ProCard expense that meets the required prepaid criteria.
   Departments must submit supporting documentation to Katie Dalessio on or before noon
    Friday July 10, 2009. Documentation must include:
          Copy of invoice that shows proof that the expense belongs in the new fiscal year
          Banner Document Number and date (i.e. S0022337 6/30/0X)
          Index
          Account Code
          Amount
   In July, Accounting Services will prepare a journal voucher to be entered in Banner to
    reverse the prepayments and record the expense in the new fiscal year. The JV is a debit to
    expense and credit to the prepaid balance sheet account 1905.



FYE Purchase Orders Procedures
Continuing Education summer session accounts may have an encumbered purchase order in
Banner in which the goods have been received and are to be paid for during the current year,
but the expense should be charged in the next fiscal year. (This exception occurs when specific
revenues and expenses must be matched with the appropriate year the actual usage will occur.)
These costs are reclassified as a next fiscal year expenses as follows:
 Purchasing clears the PO encumbrance by entering a change order or an adjustment to
    liquidate the encumbrance.
 Accounts Payable enters a Banner Finance direct pay invoice as follows:
          Index Code
          Account Code 1905
          The first five digits of the commodity description should be the expense account
             code that should be charged in the new year

   Accounts Payable must submit supporting documentation to Katie Dalessio on or before
    Friday July 10, 2009. Documentation must include:
         Copy of invoice that shows proof that the expense belongs to the new fiscal year
         Banner Document Number
         Index
         Account Code
   Accounting Services will prepare a journal voucher to be entered in Banner in the new fiscal
    year to reverse the prepayments and record the expense in July. The JV is a debit to
    expense and credit to the prepaid balance sheet account 1905.




                                          2 of 4                           updated March 2009
                             MISSOULA CAMPUS
                        FISCAL YEAR END PROCEDURES
                             PREPAID EXPENSES


Missoula BANNER A/R Prepaid Expenses
Summer semester UM – Missoula scholarship and fee waivers recorded via the BANNER
system will be correctly coded as a prepaid expense through the system, utilizing the term
based detail codes.

Accounting Services will clear this activity in the new fiscal year by preparing an Excel
spreadsheet to debit expense and credit 1905 (prepaid). The spreadsheet will be converted to
a feed file and submitted to Systems to be loaded into Banner in the new year. These prepaid
transactions can be found by doing a query in BANNER Finance (FGIGLAC) for account code
1905 and document numbers that begin with ‘F’.


Payroll
   Summer Session teaching salaries will be coordinated through Continuing Education,
    Summer Programs. All RPT’s will be processed through Peggy Nesbitt from Continuing
    Education’s Office of Summer Programs. Salaries identified as prepaid will require special
    coding on the RPT for proper payroll processing. These are as follows:
          Correct Position Number
          Index Code
          Correct Expense Account Code
          SMR-10 in the activity code field
   Other summer session salaries will be coordinated through the responsible department. If
    the salaries are to be identified as prepaid, the RPT must include the activity code. This
    does not apply to Grants.
   Using activity code SMR-10 will identify these transactions as next year’s expense on the
    JGRBDSC and JGROMYG reports until they are moved before year-end closing.
   Accounting Services will prepare an Excel spreadsheet to debit 1905 (prepaid) and credit
    expense. The spreadsheet will be converted to a feed file and submitted to Systems in prior
    to the June month-end to be loaded into Banner for the current fiscal year. This journal
    voucher will be automatically reversed in the new year.
   Reminder: All SMR-10 payroll activity will be reviewed by Business Service personnel to
    ensure that only the appropriate payroll expense is moved to Prepaid. Once the
    determination has been made, salaries with activity code SMR-10 will be reversed to
    Prepaid for the current fiscal year & recorded as an expense in the new fiscal year.




                                          3 of 4                           updated March 2009
                            MISSOULA CAMPUS
                       FISCAL YEAR END PROCEDURES
                            PREPAID EXPENSES


                                           Reports
  The available budget balance reported on JGIBDST will be correct for all expense accounts
  except payroll. Prepaid payroll expenses will not be moved to the balance sheet account
  1905 until after June month-end closes. To view the true FY08 activity prior to the move,
  you will need to follow the instructions below.

  JGIBDST (online)
     Enter the index code and activity code SMR-10, Next Block (This will display all prepaid
      payroll activity).
     Record the prepayment total
     Rollback
     Enter the index code only, Next Block (This will display all current and prepaid activity
      including ProCard activity).
     Subtract the prepayment amount from the current activity to see expenses applicable to
      current year.
     Add the prepayment total to the available balance to see current year available balance.

  FGITBSR (online)
     In JGIBDST enter the index code and activity code SMR-10, Next Block (This will
      display all prepaid activity including ProCard prepaid activity).
     Record the prepayment total.
     Rollback
     In FGITBSR enter the fund number, Next Block (This will display all current, prepaid and
      ProCard activity plus fund balance).
     Add the prepayment totals to the calculated fund balance. (Remember, this form does
      not include encumbrances in the calculated fund balance.)

Departments-
  To ensure all prepaid expenses are properly recorded, a summary sheet should be sent to
  Katie Dalessio. This sheet should include: Banner document number, date, index code,
  expense account code, vendor name, amount, and process area (i.e. Department, Travel
  Desk, ProCard, other A/P) for each prepaid expense.

  Please contact Accounting Services/Katie Dalessio (x6054) for any questions regarding
  these procedures.




                                        4 of 4                           updated March 2009

				
DOCUMENT INFO