Related Entity Transaction (RET) Training November 2013

1. Related Entity Transaction (RET)TrainingNovember 2013 Presented by: CI Finance Team

2. CI Finance Team - Presenters • Michelle Hense • Accountant – Accounts Receivable • Jennifer Schweisinger • Accounting Supervisor

3. What is a RET? • An “internal” transactions between two of the below entities: • Associated Students, Inc. • CSUCI - Campus • Foundation • Financing Authority • Site Authority • University Glen Corporation

4. RETvs. Invoice / Check Request • The RET is an “internal” transaction • An “external” transaction is between one of the previously mentioned six (6) entities and an outside customer • If “external,” the originally established business process will continue (i.e. the issuance of an invoice or check request)

5. Examples of Use • The RET is used to process: • Banquet Event Orders • Monthly Administrative Charges • Photocopying/Photocopying/Postage Charges • Grant and Contract Transactions • Student Fee Reimbursements • Reimbursed Activities (ZZ Funds)

6. Why Create the RET? • Created as a tracking form that will be sent to each entity whereas the transaction can be recorded on the financial ledger of each entity • Will ensure that all entities have the transactions recorded at the same time, during the same month, and for the same amount

7. RETForm

8. Accounting 101 • Normal ending balances: • Expense accounts = debits (+) • Revenue accounts = credits (-)

9. Accounting 101 • Equate this to your own ‘bank statement’ • Money spent shown as a debit (+) • i.e. your ‘debit card’ • Deposits shown as a credit (-)

10. Accounting 101 • If there is a debit (+), there must be an offsetting credit (-) • Balance must equal zero!

11. Accounting 101 • Example from the Data Warehouse Debit (+) Debit (+) = Expense Original Entry

12. Accounting 101 • Example from the Data Warehouse Original Entry Debit (+) To Correct Original Entry Credit (-)

13. Accounting 101 • Example from the Data Warehouse Final Entry Move expense to correct Dept

14. Accounting 101 • Example from a ProCard Statement Debit (+) Debit (+) = Expense Original Entry

15. Accounting 101 • Example from a ProCard Statement Original Entry Debit (+) To Correct Original Entry Credit (-)

16. Accounting 101 • Example from a ProCard Statement Final Entry Move expense to correct Account

17. How to fill out the RET Form • Open the JET Form

18. How to fill out the RET Form

19. How to fill out the RET Form

20. How to fill out the RET Form

21. How to fill out the RET Form

22. How to fill out the RET Form

23. How to fill out the RET Form

24. How to fill out the RET Form

25. How to fill out the RET Form

26. How to fill out the RET Form

27. How to fill out the RET Form

28. How to fill out the RET Form

29. How to fill out the RET Form

30. How to fill out the RET Form

31. How to fill out the RET Form

32. How to fill out the RET Form

33. How to fill out the RET Form

34. How to fill out the RET Form

35. How to fill out the RET Form

36. How to fill out the RET Form

37. RET Form – Accounting Procedures • Transfer From journal entry will consist of an expense (debit) and a ‘payable to’ (credit) • Transfer To journal entry will consist of a revenue (credit) and a ‘receivable from’ (debit). Transfer From = Due To = Payable = Credit (CR) Transfer To = Due From = Receivable = Debit (DR)

38. RET Form – Accounting Procedures • Transfer From / Due To Transfer From = Due To = Payable =Credit (CR)

39. RET Form – Accounting Procedures • Transfer To / Due From Transfer To = Due From = Receivable = Debit (DR)

40. RET Form – Examples • Example #1 - Banquet Event Order (BEO) • Campus owes UGC for catering services • 1 - Transfer From CSUCI - Campus: • DR: 660820 – TM955 – 210 +245.00 • CR: 201821 – TM955 (245.00) • 2 - Transfer To UGC: • DR: 103823 – UGC01 +245.00 • CR: 504818 –UGC0I – 690 (245.00)

41. RET Form – Examples • Example #2 – Reimbursement for Expenses • Foundation owes campus for miscellaneous expenses • 1 - Transfer From Foundation: • DR: 660003 – 40046 – 450+150.00 • CR: 201823 – 40046 (150.00) • 2 - Transfer To CSUCI – Campus: • DR: 103820 – GD901+150.00 • CR: 5660820 –GD901 – 110 (150.00)

42. JET vs. RET RET is a transfer between different entities

43. JET vs. RET JET is a transfer between the same entity

44. Acceptable Types of Back-Up • Copy of report from the Data Warehouse

45. Acceptable Types of Back-Up • Copy of ProCard Statement

46. Where can we find the JET/RET form? • CI Accounting website • Under “Forms”

47. Important Information • Approval signature(s) not needed • If moving expenses that are older than 90- days, please attach a scanned copy of the “Expense Transfer Adjustment Form” • RET Form functionality will not work on • Apple computers • If you access email through Webmail • Contact Jennifer Schweisinger (x3510) for a work-around

48. Submission Information • RET Form is due the 25thof each month • Changes will appear in the following months financial statements (Data Warehouse) • RET Form and back-up must be submitted electronically…no paper copies • RET Form and back-up must be submitted to the following email address: • CIJET@csuci.edu

49. Questions? • Michelle Hense • Accountant – Accounts Receivable • michelle.hense@csuci.edu • X 3143 • Jennifer Schweisinger • Accounting Supervisor • jennifer.schweisinger@csuci.edu • X 3510