Financial Foundations DMS: Non Labor (Part A) Encumbrances & Expenses

Transcription

1 : Non Labor (Part A) Encumbrances & Expenses I. Non Labor Data Flow into DMS 1

2 II. Remaining Balance Formula Answers the question: How much money do I have left to spend? III. Non Labor Encumbrances Non Labor encumbrances represent funds committed to future non salary expenses which have not yet hit the GL. Creation: System generated encumbrances come from APPO/Peoplesoft Manual encumbrances can also be created by DMS Users Timing: Real Time Relieved: As actual expenses occur, DMS matches those expenses to outstanding encumbrances. They are relieved as they match. Timing: Nightly 2

3 Types: There are two types of Non Labor Encumbrances in DMS: Reference Number Encumbrances: o Have an identified reference number that is entered into the GL. DMS uses this number to match the actual expense. o Create manual encumbrances in DMS exactly as it will appear in GL to ensure a match. o No need to manually encumber system generated encumbrances. o Examples: System Generated Manual Paper Requisitions* 1180 eprocurement *historical Check Requests Journal Entries Travel Postage Pcard Radioisotopes Stipends Work Orders Account Summary Encumbrances: o Used for transactions without a reference number o Identified by unique center/account combination o Use lump sum encumbrance for large or recurring transactions o Examples: Manual Animal Care Per Diem Other Core Facilities Billing Subcontractors Federal Express Tuition & Health Insurance Indirects Vnet Charges Malpractice Voice Mail 3

4 III. Notifications Intended to call your attention to an encumbrance Apply to non labor, reference number encumbrances only Generated before a transaction hits the ledger Descriptions: Acct/Ctr Mismatch: Account and/or center on PO did not match encumbrance. Amt Greater: PO amount is greater than encumbered amount. Created by System (non Eproc): System generated PO encumbrance that did not originate in eprocurement, i.e. paper requisitions. COP: Encumbrance contains a center outside the purview of the Encumbrance Initiator. COP will appear on the initiator s worklist as well as users worklists with access to the center to which the encumbrance initiator did not have access. Updated by System: System generated PO encumbrance that DMS updated when the PO was changed in the source system. IV. Non Labor Encumbrances: Timing 4

5 V. Closing Non Labor Encumbrances Encumbrances are Relieved as actual expenses occur and DMS matches those actual expenses to outstanding encumbrances. o APPO/Peoplesoft Encumbrances are relieved Nightly o General Ledger Encumbrances are relieved Nightly Closing Encumbrances Encumbrances are automatically closed when fully relieved To manually close encumbrances with a remaining balance: o System Generated Encumbrances with balance to encumbrance_removal@list.vanderbilt.edu Closes in DMS & APPO o Manual Encumbrances with balance Mark encumbrance as closed within DMS VI. Budget Budget information comes to DMS from the GL daily. Fiscal Budget July 1 June 30 Budget will match GL Budget Project Budget Project can be multiple years Budget dates should match current award year Research Reward Id 1 is the employee id of the Principal Investigator (Medical Center only) Use Reporting Groups to flag centers in a group and run reports for multiple centers at a time. 5

6 VII. Reports DMS reports are accessed via the Reports tab within the application. Outstanding Encumbrance Report Description/Purpose: The Outstanding Encumbrance Report shows all open encumbrances with a balance remaining (debit or credit). The encumbrances are listed by account number and all activity for each outstanding encumbrance is reported. Responsibilities: Manage departmental Remaining Balance by monitoring outstanding encumbrances. Close inactive encumbrances A. Identify old/inactive PO s (those which no merchandise is expected due to discounts or verbal cancellations) B. Close system generated encumbrances if you are sure there will be no further activity on the PO by sending an to encumbrance_removal@list.vanderbilt.edu C. Close manual encumbrances in DMS by changing the encumbrance s status to closed. Status Summary by Account Description/Purpose: The Status Summary Report shows all components of your remaining balance. It has a column for your budget, open encumbrances, the current period expenses, and your total expenses. The last two columns show the remaining balance and the remaining spend average per month. Links within the Status Summary report will take you to the Outstanding Encumbrance Report and GL Expense Detail. Responsibilities: Use this report to view your current remaining balance. Close encumbrances to more accurately reflect your remaining balance. 6

7 Center Trend Report Description/Purpose: The Center Trend Report shows all components of your remaining balance with your actual expenses and your encumbrances 12 months back from the center s budget end date. Responsibilities: Use this report to view your current remaining balance. Close encumbrances to more accurately reflect your remaining balance. Use Center Spending Information tab to review and monitor Burn Rate. VIII. Useful Links and Support Privilege Management Application webpage: DMS User Guide Business Objects Security Form %20v pdf DMS Support: dms.support@vanderbilt.edu 7

8 IX. Appendix: Best Practices Reference Number Encumbrances 1180 Use the reference number provided on the 1180 form as the reference number for the encumbrance, exactly as entered, including or excluding any letters. Check Request Non Payroll Journal Entry Other Reference Number Postage and Metered Mail Procurement Card Purchase Order Use the reference number provided on the check request including the CR (CR + Check Req form #). You can create a Non Payroll Journal Entry encumbrance as a placeholder for an anticipated GL expense that will come across as a journal entry. DMS will never attempt to match on this encumbrance type, so you will need to manually relieve your encumbrance once the expense hits your ledgers and you may use whatever numbering scheme is meaningful to you. Note: an Account Summary encumbrance can also be used. Use the specific Reference Number type if available; otherwise will reconcile to GL transaction data. Use the reference number provided by the metered mail vendor (e.g. Pitney Bowes) for the encumbrance. Uses reference number from US Bank Access Online, found by going to Transaction List, clicking the Final Approved link on the desired transaction, and viewing the Summary tab for the transaction. Take the reference number under Reference Information and truncate it sixteen digits from the RIGHT. DMS automatically generates Purchase Order (PO) encumbrances for you when the PO is created in Procurement. Do not create manual encumbrances in DMS for eprocurement orders; DMS will create them automatically once the order is approved in eprocurement. 8

9 Radioisotopes Stipends Student Travel (Paper) Travel (Concur) Work Order Use the reference number from VEHS (Vanderbilt Environmental Health & Safety) as the reference number for the encumbrance. The uneditable default account number is Users should never encumber for Radioisotopes using Undergraduate students paid through Demand Check may be encumbered for here. Graduate student stipends which are processed in HR are system generated in the DMS Labor Encumbrances module. Use the reference number from the Student Travel Expense Report form as the reference number for the encumbrance. Use the report key generated in the Report Header of an expense report in the Concur system as the reference number for the encumbrance. Use the reference number from the Plant Services or Plant Operations Work Order form as the reference number for the encumbrance. Account Summary Encumbrances Purpose Acount Editable Account Number? Animal Care Per Diem No Core Facility Billing No default Yes Federal Express Yes Indirects Yes Malpractice No Other Account Summary No default Yes Subcontracts No default Yes Tuition & Health Insurance No default Yes Vnet No Voic No 9