Choosing the Correct GL Code

Size: px

Start display at page:

Download "Choosing the Correct GL Code"

Drusilla Williams
7 years ago
Views:

1 Table of Contents Table of Contents 1 Basic GL Information 2 Capitalizing Assets Category Items List 5 OSF OEC 6 Grants GL Account to Budgetary Category 7 Example 8 General Ledger Fund Listing 9-10 OUHSC - PeopleSoft Financials updated February 2011 Page 1

GL Account to Budgetary Category 7 Example 8 General Ledger Fund

2 Intro Ways to Use Expense GL Codes: 1. Please Pay Voucher 2. Requisitions/Purchase Orders 3. Pcard Payments Effects Of Using Incorrect GL Codes: 1. Payments may not be properly reported on 1099 or Items may not be tracked by Asset Management if for proper amortization of expenses on financial statements. 3. GL codes on POs cannot be corrected on the PO, so it is important that the GL is correct on the requisition. 4. Cost transfer may be necessary to correct GL codes after the payment is made. OUHSC - PeopleSoft Financials updated February 2011 Page 2

Items may not be tracked by Asset Management if for proper amortization of expenses on financial statements. 3.

3 When to Capitalize: Capitalizing Tangible Capital Asset - A tangible capital asset is one that is: Moveable (i.e., not permanently attached to a building), Has a useful life extending beyond one year, and whose cost (i.e., invoice price plus freight, installation, etc.) is $5000 or more. Examples of tangible capital assets are: office equipment, lab equipment, shop equipment, motor vehicles, furniture, tools, etc. A tangible capital asset cost is "capitalized" or reported as an asset on an organization's balance sheet rather than "expensing" the cost of the item against the current fiscal year's operations. Tangible Non-Capital Asset - A tangible noncapital asset is: One that has a useful life of one year or less and/or Whose cost is less than $5000. The cost of a tangible non-capital asset is "expensed" on an organization's income statement against the current fiscal year's operations. OUHSC - PeopleSoft Financials updated February 2011 Page 3

A tangible capital asset cost is "capitalized" or reported as an asset on an organization's balance sheet rather than "expensing" the cost of the item against the current fiscal year's operations.

4 : Category Item List Find your expense GL codes by category alphabetically. Also, has specific payment type notes on the list. Office of State Finance (OSF) Object Expenditure Code (OEC) Obtain the full description/meaning of the OUHSC GL codes by using the OSFOEC number. Grants GL Account to Budgetary Category Find which category on your SPNSR or SP490 funds that the GL expense account will fall in. General Ledger Fund Listing The full list of all accounting GL accounts for all types of transactions (asset, revenue, liability, expense, etc) OUHSC - PeopleSoft Financials updated February 2011 Page 4

pdf Obtain the full description/meaning of the OUHSC GL codes by using the OSFOEC number. Grants GL Account to Budgetary Category http://www.ouhsc.

5 Category Item List: This is the tool AP recommends when searching for expense GL codes. / / / / GL Code Category 2. GL Code Subcategory 3. OUHSC GL (Account) Code 4. OUHSC GL Item Description 5. OSF OEC 4 5 You can search the category item list by keyword to locate a GL code that fits the item/service you are purchasing. If you cannot tell by the description, copy the OSFOEC and paste it in to the State s list (see next page). OUHSC - PeopleSoft Financials updated February 2011 Page 5

OUHSC GL (Account) Code 4. OUHSC GL Item Description 5.

6 OSF OEC: This is the tool to use when the description on the Category Item List is too vague, you can t find a code that matches your payment, or you just need to verify your choice. Type a keyword or the OSF OEC in to the search box OSF OEC 2. Title 3. Description Once you have the OEC, you can search for it on the category item list by clicking Ctrl+F to find the corresponding GL code. OUHSC - PeopleSoft Financials updated February 2011 Page 6

pdf Type a keyword or the OSF OEC in to the search box. 1 2 3 1. OSF OEC 2. Title 3.

7 Grants GL Account to Budgetary Category: This tool is used to determine the budget category the GL falls under when budgeting for a grant. Copy and past the GL code from the Category Item list or search by a key word Budget Category 2. GL Code 3. GL Code description from Category Item List OUHSC - PeopleSoft Financials updated February 2011 Page 7

pdf Copy and past the GL code from the Category Item list or search by a key word. 1 2 3 1. Budget Category 2.

8 Example: We need to find a code for a physical therapist. 1. Type therapy into the OSF OEC Search box and click next until you find a description that matches your payment. 2. Copy the OEC 3. Open the Category Item list, click Ctrl+F, and paste the OEC 4. Choose the GL that corresponds with the OEC 5. Copy the GL and paste in to search box on Grant GL Account to Budgetary Category 6. If you can t see the Budgetary Category on the page, scroll up until you find it OUHSC - PeopleSoft Financials updated February 2011 Page 8

Open the Category Item list, click Ctrl+F, and paste the OEC 4. Choose the GL that corresponds with the OEC 5.

9 General Ledger Fund Listing: funds must be paid within the same budget year as the service date(s), invoice date, or order date. When these stat cancel, the money is not returned to the department. The warrant must be reissued through the state within 36 months from the date of the cancellation funds must be paid within the same budget year as the service date(s), invoice date, or order date. When these stat cancel, the money is not returned to the department. The warrant must be reissued through the state within 36 months from the date of the cancellation. OUHSC - PeopleSoft Financials updated February 2011 Page 9

The warrant must be reissued through the state within 36 months from the date of the cancellation. 2.

10 General Ledger Fund Listing Con t: funds may cross budget years because cash carries (with exception to travel claims). When they cancel by statute after 90 days, AP cancels/reverses the payment and the funds are returned to the department. The department can reissue the payment as many times as necessary. If the payment is still due and not reissued within five (5) years, it will be reported as unclaimed property funds may cross budget years because cash carries. When they cancel by statute after 90 days, AP cancels/reverses the payment and the funds are returned to the department. The department can reissue the payment as many times as necessary. If the payment is still due and not reissued within five (5) years, it will be reported as unclaimed property. OUHSC - PeopleSoft Financials updated February 2011 Page 10

If the payment is still due and not reissued within five (5) years, it will be reported as unclaimed property. 4. 703 funds may cross budget years because cash carries.

Welcome to the financial reports topic. 5-1-1

Welcome to the financial reports topic. 5-1-1 We will explore the effect of standard processes in SAP Business One on Financial Reports: such as the Balance Sheet, the Trial Balance, and the Profit and