financial processing basics 11.5 - university of maryland processing basics... · useful before or...

KFS Training Manual

Financial Processing Basics

University of Maryland Training Guide

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Table of Contents Objectives .......................................................................................................................... iv Resources .......................................................................................................................... iv Kuali Financial Systems ................................................................................................... 1

Reclassifications of Income or Expense using the Distribution of Income and Expense .... 1 Balance Sheet & Income to Expense Reclassifications using the Auxiliary Voucher ........ 10 Reclassifications of Income or Expense for Sponsored Accounts using the General Error Correction ................................................................................................................................. 22 Mandatory and Non-Mandatory Transfers using the Transfer of Funds eDoc ................ 38

University of Maryland

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Objectives • Understand how to Reclassify Income or Expense using the Distribution of Income

and Expense eDoc • Understand how to use the Auxiliary Voucher • Understand how to Reclassify Income or Expense for Sponsored Accounts using the

General Error Correction • Understand how to search for a transaction using the General Ledger Entry Lookup • Understand how to use the transfers funds on Mandatory and Non-Mandatory

Transfers using the Transfer of Funds eDoc

Resources All of the materials covered in this workshop are also covered in the online tutorials found here: http://kualifinancial.umd.edu/UPK/upk_login.html. The online tutorials can be useful before or after training in case you want to get a head start on training or just need a quick refresher. Email your questions to [email protected]. The Kuali Financial Website has the following pages to assist you with using Kuali Financial Systems. KFS Training Registration: http://kualifinancial.umd.edu/KFS/kfs-registration-all1.html Helpful Resources: http://kualifinancial.umd.edu/KFS/ UMD Policies and Procedures: http://www.president.umd.edu/policies/Forms * In order to connect to the Kuali Financial System (KFS) users MUST already be connected to the campus VPN with the UMapps profile/group BEFORE trying to connect to the KFS. VPN Software is available via the IT Service Center and includes the download and software installation instructions. You can click on the VPN Software link above or copy and paste the VPN Software link into a browser. (https://www.itsc.umd.edu/MRcgi/MRTicketPage.pl?USER=&MRP=0&PROJECTID=1&MR=33566)


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REVISION LOG This document is under version control. Version Date Description

1.0 10/31/13 Revision Log Added 1.1 11/13/13 Updated verbiage on page 28 step 15 and removed blank page.


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Kuali Financial Systems

Reclassifications of Income or Expense using the Distribution of Income and Expense

Procedure The DI document is used to distribute the income or expense only from a holding account to one or more appropriate account(s) when one account has incurred expenses or received income on behalf of one or more other accounts. It can also be used to move income or expenses to other accounts or object codes. An example would be allocating P-Card transactions to multiple Accounts and/or Object Codes. Please view the Journal Entries Workflow on page 46. Navigation: Main Menu > Transactions > Distribution of Income and Expense

Step Action 1. On the Main Menu tab, click the Distribution of Income and Expense link.

2. Click the collapse all button.


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Step Action 3. To open the Document Overview tab, click the show button.


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Step Action 4. Enter an appropriate Description of the transaction. This Description will appear in

document searches. Enter "Transfer travel expense to UMD Dept Two" in the Description: field.

5. Although it is not a system-required field, UMD is requiring the Explanation field to be entered as a further explanation of why the DI is being initiated. Note: The field has a maximum of 70 characters. Enter "Travel expenses for J. Doe 7/13/13" in the Explanation: field.

6. Enter your predefined department and sequential log number. Enter "GAO222" in the Organization Document Number: field.

7. The Total Amount field is display only and will be populated once the amounts are added to the Accounting Lines.

Step Action 8. To close the Document Overview tab, click the hide button.

9. To open the Accounting Lines tab, click the show button.


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Step Action 10. The DI eDoc has an import lines feature that allows you to import any number of

accounting lines and other types of data from a comma-delimited (.csv) file created from data import templates. Note: For more information on using the Import Lines feature, please view the Using the Import Accounting Lines Button tutorial.

11. The From section of the Accounting Lines tab represents a decrease in income (revenue) or expense.

12. In the From Section, click the Chart drop-down arrow button.

13. Select the appropriate Chart Code.

Select the 01 option from the drop-down menu.


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Step Action 14. Enter the appropriate Account. If you do not know the account number, you may

click on the search magnifying glass to conduct a lookup. Enter "1234567" in the Account field.

15. Enter the appropriate Object Code. If you do not know the object code, you may click on the search magnifying glass to conduct a lookup. Enter "3311" in the Object field.


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Step Action 16. Enter the amount that you want to move or re-allocate.

Enter "100.00" in the Amount field.

Step Action 17. Enter an appropriate Line Description. This is not a required field.

Enter "J. Doe Travel 7/13/13" in the Line Description field.


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Step Action 18. This document allows multiple lines in the From and To section. This example is

only using one accounting line in each section. Click the add button.

Step Action 19. The To section of the Accounting Lines tab represents an increase in income

(revenue) or expense.


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Step Action 20. In the To section, click the Chart drop-down arrow button.


Select 01 from the drop-down menu.

22. Enter the appropriate Account.

Enter "8765432" in the Account field.

Step Action 23. Enter the appropriate Object Code.

Enter "3311" in the Object field.

24. Enter the amount you want to move or re-allocate. The total amount(s) entered in the From accounting lines should equal the total amount(s) entered in the To accounting lines. Enter "100.00" in the Amount field.

25. Enter an appropriate Line Description. This is not a required field. Enter "J. Doe Travel 7/13/13" in the Line Description field.


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Step Action 26. Click the add button.

27. To close the Accounting Lines tab, click the hide button.


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Step Action 28. Click the submit button once you have completed all the required fields on this

eDoc. Note: Be sure you receive a "Document was successfully submitted" message at the top of the page.

29. You have successfully completed the Reclassifications of Income or Expense using the Distribution of Income and Expense tutorial. End of Procedure.

Balance Sheet & Income to Expense Reclassifications using the Auxiliary Voucher

Procedure The Auxiliary Voucher is used for making all other entries that are not income-to-income, expense-to-expense, or transfer transactions. This would include entries between income and expense, or those affecting any Asset or Liability accounts. Examples would include transactions affecting clearing, prepaid, or deferred object codes or the case of a refunded item needing to be reclassified. Navigation: Main Menu > Transactions > Financial Processing > Auxiliary Voucher


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Step Action 1. Click the Auxiliary Voucher link.

Step Action 2. Click the collapse all button.

3. To open the Document Overview tab, click the show button.


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Step Action 4. Enter an appropriate description of the transaction.

Note: This description will appear in document searches. Enter "ABC Co. service contracts 7/1-7/31/2013" in the Description: field.

5. Although it is not a system-required field, UMD is requiring the Explanation field to be entered as a further explanation of why the Auxiliary Voucher is being entered. Enter "To record expense from prepaid service contract JUL 2013" in the Explanation: field.

6. Enter your predefined department and sequential log number. Enter "GAO333" in the Organization Document Number: field.


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Step Action 8. To open the Auxiliary Voucher tab, click the show button.

Step Action 9. The Accounting Period will default to the current period and should not be

changed. Note: The form will also default to the Adjustment radio button and should not be changed.

10. To close the Auxiliary Voucher tab, click the hide button.



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Step Action 12. Click the button to the right of the Chart Code field.

13. Select the appropriate Chart Code. Select 01 from the drop-down menu.


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Step Action 14. Enter an appropriate account number. If you do not know the account number, you

may click on the search magnifying glass to conduct a lookup. Enter "1234567" in the Account Number for New Line field.

15. Enter an appropriate Object Code. If you do not know the account number, you may click on the search magnifying glass to conduct a lookup. Enter "6610" in the Object Code field.

16. Enter the transaction amount. Enter "1000.00" into the Credit field.


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Step Action 18. To add an additional line, click the button to the right of the Chart Code field.

Step Action 19. Select an appropriate Chart Code.


20. Enter an appropriate account number.

Enter "8765432" in the Account Number field.


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Step Action 21. Enter an appropriate Object Code.

Enter "3752" in the Object Code field.

22. Enter the transaction amount. The total debit and credit amount(s) entered in all accounting lines should equal. Enter "1000.00" in the Debit field.


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Step Action 24. To close the Accounting Lines tab, click the hide button.



26. You have successfully completed the Balance Sheet & Income and Expense reclassifications using the Auxiliary Voucher tutorial. End of Procedure.


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Reclassifications of Income or Expense for Sponsored Accounts using the General Error Correction

Procedure The General Error Correction eDoc allows users to easily make corrections to eDocs that were previously submitted and approved. Examples of common usage at UMD are:

• Correcting of accounts and object codes on a Financial Processing (FP) e-doc, or a PREQ (PO invoice).

• Account correction for an expense (e.g., supplies were charged to an incorrect account).

Step Action 1. Before you begin the General Error Correction process, you need to research for

the entry in the General Ledger Entry for the transaction that needs to be corrected.

2. To open the General Ledger Entry screen click the link from the Main Menu. Click the General Ledger Entry link.


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Step Action 3. The General Error Correction (GEC) eDoc is used to correct entries that have

already posted to the General Ledger. This includes entries with either a 'Final' or 'in process' status. Note: The GEC is not used for redistributing income or expenses. Use the Distribution of Income and Expense e-doc, to correct salary and/or fringe benefits expenses use the Salary Expenses Transfer or to transfer funds use the Transfer of Funds e-doc.

4. Enter the appropriate Chart Code. Enter "01" in the Chart Code: field.

5. Enter an account number or search for an account number by using a wildcard (*).

Enter "1118*" in the Account Number: field, or enter 1118610. Note: For training purposes you will be using a ledger one accounts for this example.

6. Enter the appropriate Object Code. Enter "3916" in the Object Code: field. Note: To search for all Object Codes, use only an asterisk in the search field.


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Step Action 7. The Fiscal Period field will default to the current Fiscal Period. Enter the Fiscal

Period when the transaction being searched occurred. Enter "01" in the Fiscal Period: field.

Step Action 8. Click the search button.

9. The transaction search displays details on the accounting transaction. Including the Fiscal Year, Chart Code, Account Number, Object Code, Ledger Description, and Amount.


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Step Action 10. Locate the Origin Code and Document Number.

Note: To complete the General Error Correction eDoc, you will need to know the document number of the transaction that created the entry, the origin code of the document, and the accounting line information for the transaction you are correcting.

11. You have successfully completed the Searching for Transactions Using the General Ledger Entry Screen tutorial.


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Step Action 12. Once you have the information from the original transaction, you may begin

completing the General Error Correction eDoc. Return to the Main Menu and click the General Error Correction link.


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Step Action 13. To minimize scrolling, click the collapse all button.



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Step Action 15. Enter an appropriate description of the transaction. This description will appear in

document searches. Enter "Move lab supplies for Grant ABC" in the Description: field.

16. Although it is not a system-required field, UMD is requiring the Explanation field to be entered as a further explanation of why the GEC is being entered. Note: The field has a maximum of 70 characters. Enter "Project lab supplies were incorrectly posted to UMD Depart One 7/2013." in the Explanation: field.

17. Enter your predefined department and sequential log number. Enter "CMPS333" in the Organization Document Number: field.




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Step Action 20. The From section of the transaction represents a decrease in income (revenue) or

expense. The Accounting Line information should match the Accounting Line information from the transaction that you are correcting.

21. In the From Section, click the Chart drop-down arrow button.


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Step Action 22. Select the appropriate Chart Code.


23. Enter an appropriate Account.

Enter "1118610" in the Account field. Note: For training purposes you will be using a ledger one account for this example.

24. Enter an appropriate Object Code. Enter "3916" in the Object field.


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Step Action 25. Enter the Amount you are moving.


26. The Reference Origin Code describes the source system of the transaction that is being corrected. Enter "01" in the Reference Origin Code field.

27. Enter the Document Number of the transaction that is being corrected. Enter "2221" in the Reference Number field.


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Step Action 28. Enter an appropriate Line Description.

Enter "Project supplies to 1234567" in the Line Description field.


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Step Action 29. This document allows multiple lines in the From and To section. This example is

only using one line in each section. Click the add button.

Step Action 30. The To section of the transaction represents an increase in income (revenue) or

expense. Make your corrections in the To Accounting Lines. In this example, the wrong account was used for Project Supplies.

31. In the To section, click the Chart drop-down arrow button.



33. Enter "1234567" in the Account field.

Note: For training purposes you will be using a ledger one account for this example.


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Step Action 34. Enter an appropriate Object Code.

Enter "3914" in the Object field.

35. Enter the Amount you want to move. The total amount(s) entered in the From accounting lines should equal the total amount(s) entered in the To accounting lines. Enter "200.00" in the Amount field.

36. The Reference Origin Code describes the source system of the transaction that is being corrected. Note: The Reference Origin Code is used to enter the origination code from the original document that the correction is for. Enter "01" in the Reference Origin Code field.

37. Enter the Document Number of the transaction that is being corrected. Enter "2221" in the Reference Number field.


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Step Action 38. Enter an appropriate Line Description.

Enter "Project Lab supplies from 1118610" in the Line Description field.


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40. To close the Accounting Lines tab, click the hide button.




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Step Action 42. You have successfully completed the Reclassifications of Income or Expense for

Sponsored Accounts using the General Error Correction tutorial. End of Procedure.


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Mandatory and Non-Mandatory Transfers using the Transfer of Funds eDoc Procedure In this tutorial, you will learn to use the Transfer of Funds eDoc. This document is used to transfer funds between accounts. Navigation: Main Menu > Transaction > Financial Processing > Transfer of Funds

Step Action 1. Click the Transfer of Funds link on the Main Menu.

2. To minimize scrolling and tab details click the collapse all button.


4. Enter a description for the eDoc you are creating into the Description field on the Document Overview tab. To learn more about completing the Document Overview tab view the Understanding the Document Overview Tab tutorial.

5. To close the Document Overview tab, click the hide button.


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Step Action 6. To open the Accounting Lines tab, click the show button.

7. The From section of the Accounting Lines tab represents a decrease in income

(revenue), expense, asset or liability.


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Step Action

8. Click the Chart drop-down arrow button.

9. Select the "01" option from the drop-down menu.

10. Enter the appropriate Account Number.


11. Enter the appropriate transfer Object Code. Note: You can only use Object Codes with an Object Sub-Type of TN (Non-Mandatory Transfer) or MT (Mandatory Transfer) on this eDoc. These Object Codes generally begin with 99XX. For help using lookups, see the Using the Magnifying Glass and Wildcards to Conduct a Lookup tutorial. Enter "9926" in the Object field.

Step Action 12. Enter the amount of the transfer.



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Step Action 13. Enter a description for the transaction.

Enter "Transfer to 8765432 to cover supplies" in the Line Description field.


15. The To section of the Accounting Lines tab represents an increase in income

(revenue), expense, asset or liability.


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Step Action 16. Click the Chart drop-down arrow button.


Select the "01" option from the drop-down menu.

18. Enter the appropriate account.



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Step Action 19. Enter the appropriate Object Code.

Remember to use an Object Code with an Object Sub-Type of TN or MT. Enter "9926" in the Object field.

20. The total entered in the Amount field here must equal the total in the From Accounting Line. You can enter multiple lines if needed. In this case, however, you're using only one From account and one To account. Enter "1000.00" in the Amount field.


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Step Action 21. Enter the appropriate description.

Enter "transfer from 1234567 to cover supplies" in the Line Description field.

22. Click the add button.


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Step Action 23. To close the Accounting Lines tab, click the hide button.


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Step Action 24. Click the Submit button once you have completed all the required fields on this


25. You have successfully completed the Transfer of Funds eDoc. End of Procedure.


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A journal entry is a non-cash transfer of dollars between two or more accounts. A journal entry can be used to allocate charges, transfer funds or correct account number or object code errors. The table below outlines the forms currently used to create a journal entry in FRS and the KFS Financial Processing (FP) Documents that will replace them. FRS FRS DESCRIPTION KFS FP

DOCUMENT EGW Other than Compound JV

This form is used by central administration on a rare basis when accounts or sub codes that have been pre-edited to not allow transactions need to be affected.

Journal Voucher, Auxiliary Voucher

Intercampus JV

Used for entries affecting accounts on different campuses, an on-campus account and an off-campus account. The total debits must equal the total credits for the entire form.

Distribution of Income and Expense, Auxiliary Voucher, and General Error Correction

JV Compound

Used for entries where multiple account transactions are taking place. The total debits must equal the total credits for the entire form.

Distribution of Income and Expense, Auxiliary Voucher, and General Error Correction

JV Other than Compound

Used for two sided entries where each line is self-balancing (where Debit = Credit). Used for mandatory and non-mandatory transfers.

Distribution of Income and Expense, Auxiliary Voucher, General Error Correction, and Transfer of Funds

Non-Payroll Transfer

Used to record adjustments where each line is self balancing (DEBIT=CREDIT). Initially created for adjustments affecting restricted ledger 4 and 5 accounts. This form includes the original posting period where the Other than Compound JV and other JVs do not.

General Error Correction & Auxiliary Voucher


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Users will choose a KFS FP Document depending on the business need and the type of object codes types that are being affected in the journal entry. The various KFS FP Documents that are available are listed below along with a description of the entry types that are allowed. KFS FP DOCUMENT TRANSFER or ADJUSTMENT TYPE Distribution of Income and Expense

Income to Income (Non Contract & Grant Accounts)

Distribution of Income and Expense

Expense to Expense (Non Contract & Grant Accounts)

General Error Correction Income to Income (required for Contract & Grant Accounts)

General Error Correction Expense to Expense (required for Contract & Grant Accounts)

Auxiliary Voucher Income to Expense Auxiliary Voucher Expense to Income Auxiliary Voucher Asset to Asset Auxiliary Voucher Liability to Liability Auxiliary Voucher Asset to Liability Auxiliary Voucher Liability to Asset Transfer of Funds Mandatory and Non-Mandatory Transfers