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Beginning Finance Training

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  1. Beginning Finance Training Sheron McIlhattan University Business Services

  2. Topics for this presentation • The paper forms where financial transactions originate • The path the forms take from creating to entry in Banner • The type of transaction these documents represent • How transactions appear on finance forms in Banner and on the finance reports • How to make corrections

  3. Confidentiality • All financial information in your office should be treated as confidential. • Don’t discuss financial matters even casually unless the other person has a “need to know” • Protect and shred confidential information

  4. Cash Receipts • Money you receive needs to be deposited with the cashiers in the University Business Services within 24 hours if over $200 in cash. • MOMs 2-1210.20 Frequency of deposits Section 17-6-105(6), MCA, requires all funds received by a state agency, institution, or campus to be deposited either with the State Treasury or in a depository approved by the State Treasurer. The intact deposits shall be deposited each day when the: • Accumulated amount of coin and currency requiring deposit exceeds $200; or • Total collections exceed $750. • At a minimum, all funds collected shall be deposited at least weekly. • If internal agency computer systems are non-operational, the agency must implement manual procedures to insure that the deposits are delivered to the Treasury Unit as required by statute (see Section 2-1210.24). • The description across the top is what will be data entered if that is the only description you want. If you have a daily deposit, a good description is the date of the deposit. If you need to track deposits differently, write in a description on the side to the left of the account codes and the cashiers will enter that description for the line associated with that entry.

  5. Cash Receipts • MSU Foundation is the description we want if that is where the check is from. Please provide any additional information you want on the individual lines. One description per line per set of account numbers. Remember to use the 4000FN activity code, if it is a foundation payment and ALSO remember that there are very few things that qualify as an expenditure abatement. Receipts from the foundation should be recorded as gift revenue in your restricted foundation gift account. • Be sure to tell us your Department, a name and phone # would be helpful as well. • Fill in the index, account code, and dollar amount and attach your deposit. • These documents will appear in the revenue codes as a Fxxxxxx document. If looking at FGITRND or account detail, the rule code for miscellaneous receipts for Bozeman is ZM1.

  6. Cash Receipt

  7. Incoming money – Deposits – what account code do I put on the receipt? • Revenue should be deposited into an account code that starts with a 5. Do not credit an expense if it is not a correction of an error. • 41xxxx or 4(alpha) does not receive revenue • 433xxx and 434xxx Indexes • Sales & Service Revenue 53631. This is new revenue to the University. This is a cash receipt you deposit with the Cashiers on a cash receipt form. It posts to your index on a document beginning with Fxxxxxx. • Recharge Income 53350. This is income from another campus department. This posts from a JV, not a cash receipt. It is not new money to the university. • Course fees have their own account code (usually 52872). They come from a detail code on the student’s account. • Should not have gift revenue in any of these indexes.

  8. Incoming money – Deposits – what account code do I put on the receipt? • 432xxx indexes use 53940. Unrestricted donations and Grant Residuals. • 423xxx indexes use 53950. Misc Restricted Gifts. (ie: Foundation checks remember 4000FN activity code) • 436xxx, 437xxx indexes 53360. IDC income from grants. This is a computer generated entry. No other income should come into an IDC index. • 484xxx indexes use 53859 or an account that is appropriate to help you. This is Misc University Revenue. • 426xxx-429xxx and 4Wxxxx indexes. OSP will assign. OSP signatures are required on deposits to these indexes.

  9. DO NOT Reimburse Expenses with Foundation Checks (this must be important) • Deposit your check from the Foundation with the Cashiers in Montana Hall the same day it is received. It will need to go into a 423xxx index setup specifically for Foundation activity. Generally, the account code will be 53950 Miscellaneous Restricted Gifts. You will fill in the Activity Code field with 4000FN. • Foundation assistance is generally a gift. The account code to use for deposit should NOT be an expense account code! (See, this must be important) Do not credit expense, unless this was an expense that does not belong to the university. These are rare. We know you can’t have revenue in a general operating index, which is why we want you to set up a Foundation gift index. Move the expenses to that index. Then record the revenue there.

  10. New Index Application Form • If you do not have a 423xxx index, you may need to send us an application asking for one. • If you have a need for a new index for a specific type of activity, you can go to our web page and obtain a new account application form. Please call the accounting office and we will discuss your need and how to complete the application form.

  11. Vendor Payments on a BPA • Vendors are paid by completing a BPA form • Original invoices must be attached • Forward to the Controller’s Office for processing • Once approved, the BPA will be data entered. An electronic file of all BPA’s entered for the day is sent to the state each night • Checks are written by the Department of Administration in Helena and mailed to vendor the next day.

  12. BPA’s continued • Prior approval required from Purchasing (x3211) if purchase is over your delegated authority, usually $5,000.00 • Prior to entering into a contract paying a consultant, call Purchasing (x3211) for rules on paying Contracted Services • Expenditure Account codes can be found at

  13. Banner Operating Ledger • Represented on Banner form FGIBDST for summary information • Represented on Banner form FGITRND for detailed transaction information • Balances of revenues and expenses • Shows revenues and expenses for the current fiscal year only • Banner shows year to date--Reports show for current month only • Revenues and expenses increase or decrease cash balance • Should reconcile these monthly

  14. Explanation of Document in the “Type" Column • INNI - Paid Invoices (BPAs), the transaction description will show the vendor name. • JE16- Journal Voucher, represents a correcting entry. • JRC - Recharge Journal Entry, represents a billing between your Index an another “on campus” Index. • IPNI - Purchasing Card Transaction, represents charges to your Index from use of the departments purchasing card. • JOC - Payments made to or received from other MSU campuses. • JIA - Payments made to or received from other State of Montana agencies. • H% - Document types that begin with H are payroll related (Salaries or Benefits). • BD% - Represents budget entries. • ZM1 -Misc Deposit • GRIC -Admin Fees charged to designated Indexes/IDC charge to Grants

  15. Finding your Vendor Payment in Banner • Use Banner Form FGITRND to determine if your vendor has been paid. • In top block of form enter Fiscal Year and Index to query. • CNTRL>PGDWN • Enter “62%” in Account field (Will query all general expenses) or 63% for • equipment. • In Document field enter “I%”. • Click F8 to execute query.

  16. Vendor Payments in Banner cont. • Move scroll the scroll bar at the bottom of the form to the right to display the description which will contain the vendor name. • Query shows all payments to vendors for the queried Fiscal Year. • Can be downloaded to Excel, to combine multiple years and/or sort by vendor. • Can be queried by month by putting in the period (1 = July, 12 = June) in the “Prd” field in the top block.

  17. Vendor Detail History Form – FAIVNDH • Vendor Detail History Form – FAIVNDH • This form allows you to view all payments made to a particular Vendor. • Vendor Codes: • In most cases, the naming convention for vendor codes is the first three letters of the first name plus the first three letters of the second name. • Ex: (Reporters Office Plus = REPOFF). • CAUTION: This form does not indicate which of the four MSU campuses made the vendor payments. It is therefore helpful if you know the vendor invoice number. • In cases where we are paying outside vendors, the check number listed at the far right isn’t the check number the vendor receives. Call the Controller’s Office for information if you need it.

  18. Finance CorrectionsJournal Vouchers (JV) • After reviewing your reports, if you find errors, you need to do corrections • Complete the finance Expenditure Form for corrections between Indexes • • Enter the accounting as you currently see it, then in the last space, show what it is that you want changed. • Forward to the Controller’s office • Entry will appear on a BExxxxxx document number • Use the JD1 procedure you learned in Finance training to correct expenditures to another account within the same index.

  19. Autobills • Recurring intra-campus charges that appear automatically on your indexes. • Examples are postage and telephone charges. • These are a type JRC document that always begin the description with the name of a month and the word “Sales”. • Example: “May Sales PO Postage.” • These are automatically paid by your index. No BPA required. • For questions, call the issuing department.

  20. Admin Fees • Designated Indexes (43xxxx) are charged a 4% fee on all expenditures. • The expense posts to 62889 using rule code GRIC.