Financial Accounting and Controls
ABOUT INTERCAMPUS FINANCIAL TRANSACTIONS
The purpose of this document is:
- to summarize general information regarding intercampus financial transactions;
- to discuss the use of the new on-line Intercampus Journal Additional Information panel;
- to provide directions on printing an on-line intercampus journal with the data from the new panel; and
- to give some tips on preparation of intercampus financial journal entries. This document assumes you have a working knowledge of financial journal preparation in the Berkeley Financial System General Ledger (BFS-GL).
Intercampus financial transactions are created when University of California-Berkeley (UCB) departments do business with other campuses or Office of the President (OP) departments. Since UCB departments cannot access other campus' and OP's general ledgers, intercampus financial control accounts are used in BFS-GL to record these transactions. (The intercampus financial control accounts are used for financial transactions only, not budgetary transactions.)
After the UCB department completes the journal, the other campuses or UCB General Accounting (GA), on behalf of OP, produce journals to finish processing the transaction so that it is reflected in the general ledger of the other campus or OP. In other words, intercampus transactions are recorded using sets of reciprocal entries: debit entries to the financial control account on the general ledger of one campus correspond to credit entries to the appropriate financial control account on the general ledger of the other campus.
Note: Transactions between Berkeley departments and OP departments at Berkeley, i.e., "J-Berkeley" departments, are processed like transactions between any two Berkeley departments. They are not intercampus transactions and do not require information associated with intercampus transactions. "J-Berkeley" departments include the UC Energy Institute, the Institute of Transportation Studies, and some departments within the Division of Agriculture and Natural Resources (DANR).
The following is a list of BFS financial control accounts that correspond to each campus or OP:
|23500||E-University of California-Office of the President (UCOP)|
|23510||UC Merced (UCM)|
|23520||UC San Francisco (UCSF)|
|23530||UC Davis (UCD)|
|23540||UC Los Angeles (UCLA)|
|23550||UC Riverside (UCR)|
|23560||UC San Diego (UCSD)|
|23570||UC Santa Cruz (UCSC)|
|23580||UC Santa Barbara (UCSB)|
|23590||UC Irvine (UCI)|
For each of the accounts above, the default fund is 69995 and the default org is 00800. Program, project, and flex field codes should not be used with the financial control accounts.
Currently there is a location E (23500) and a location M (23501) financial control account for OP. "Location" refers to an accounting location, not a physical location. Account 23500 is for entries associated with the OP general ledger that is maintained in OP's Financial Management Office. For the most part, account 23500 is for certain activities associated with campus financial control accounts, endowment fund principal and income, University of California Retirement Plan, and investment activity. Account 23501 is for entries associated with OP departmental accounts on the Los Angeles general ledger. The department that will receive the credit is responsible for initiating the transaction. If you are being reimbursed for an expense that your department paid, then you may credit the account in which the expenses were incurred. If not, please use the recharge account code 59000 (recharge income).
The financial control account to be used depends on the dollar amount of the transaction, i.e, order or invoice, as follows:
Intercampus financial transactions less than $50,000
The UCB department charge is made to the other campus' or OP's location M financial control account.
On the UCB department's initiating intercampus financial journal:
Example A: transaction between UCB & UCSF to reimburse $575.00 in expenses for UCB DNA machine used by UCSF on a project.
Dr Cr Financial control UCB for UCSF – 23520: 1-23520-69995-00800 575.00 UCB department expenditure – supplies: 1-55016-78151-13574-44 575.00
Example B: transaction between UCB & UCSF to recharge $575.00 in expenses for printing services incurred by UCSF.
On the UCB department's initiating intercampus financial journal:
Dr Cr Financial control UCB for UCSF – 23520: 1-23520-69995-00800 575.00 UCB department recharge income: 1-59000-78151-13574-44 575.00
UCSF will use its code for the financial control account for UCB in its corresponding intercampus transaction. UCSF will use the information you type into the InterCampus Journal Additional Information panel.
Intercampus financial transactions greater than or equal to $50,000
The UCB department charge is made to OP's 23500 financial control account.
When single transactions (on orders or invoices) are greater than or equal to $50,000 and regardless of the campus you are doing business with (OP, UCSF, UCD etc.), the financial control entry is made to the location E OP financial control account – 23500. OP requires the use of its account in these instances as OP uses these amounts in its calculation of the campus' share of the Short Term Investment Pool (STIP).
Dr Cr Financial control UCB for E-UCOP – 23500: 1-23500-69995-00800 50,000 UCB department expenditure – supplies: 1-55016-78151-13574-44 50,000
To summarize, the 23500 account is for single transactions that are $50,000 or greater.
If single transactions are under $50,000, the total of a BFS journal may be $50,000 or greater. In this case, all intercampus lines are recorded using financial control accounts 23501 or 23520-90.
Example A: One journal entry for 4 invoices for $15,000 each to OP, UCSF, UCD, and UCLA departments. Use the financial control accounts 23501, 23520, 23530, and 23540 for each of the 4 UC campuses.
Journal lines initiated by a UCB department:
Dr Cr Financial control for UCOP – 23501: 1-23501-69995-00800 15,000 Financial control for UCSF – 23520: 1-23520-69995-00800 15,000 Financial control for UCD – 23530: 1-23530-69995-00800 15,000 Financial control for UCLA – 23540: 1-23540-69995-00800 15,000 UCB department expenditure – supplies: 1-55016-78151-13574-44 60,000
Dr Cr Financial control for UCOP – 23501: 1-23501-69995-00800 15,000 Financial control for UCSF –23520: 1-23520-69995-00800 15,000 Financial control for UCD – 23530: 1-23530-69995-00800 15,000 Financial control for UCLA – 23540: 1-23540-69995-00800 15,000 UCB department recharge income: 1-59000-78151-13574-44 60,000
Since each individual invoice is less than $50,000. There is no need to use account 23500 even though the total of the BFS journal is $60,000.
Example B: One journal entry for 5 invoices: 4 invoices at $10,000 each to OP, UCSF, UCD, and UCLA using the financial control accounts 23501, 23520, 23530, and 23540, respectively, AND 1 invoice at $60,000 to UCSF using the financial control account 23500.
Journal lines initiated by a UCB department:
Dr Cr Financial control for UCOP – 23501: 1-23501-69995-00800 10,000 Financial control for UCSF – 23520: 1-23520-69995-00800 10,000 Financial control for UCD – 23530: 1-23530-69995-00800 10,000 Financial control for UCLA – 23540: 1-23540-69995-00800 10,000 Financial control for E-UCOP – 23500: 1-23500-69995-00800 60,000 UCB department expenditure – supplies: 1-55016-78151-13574-44 100,000
Dr Cr Financial control for UCOP – 23501: 1-23501-69995-00800 10,000 Financial control for UCSF – 23520: 1-23520-69995-00800 10,000 Financial control for UCD – 23530: 1-23530-69995-00800 10,000 Financial control for UCLA – 23540: 1-23540-69995-00800 10,000 Financial control for E-UCOP – 23500: 1-23500-69995-00800 60,000 UCB department recharge income: 1-59000-78151-13574-44 100,000
Each individual invoice less than $50,000 is recorded to the regular financial control accounts for the appropriate campus and the invoice that is $60,000 for UCSF is transacted to the OP account 23500.
A new panel has been added to the BFS-GL — an on-line financial journal panel for intercampus financial transactions that are initiated by the Berkeley campus. This panel is called the Intercampus Journal Additional Information panel. The Intercampus Journal Additional Information panel replaces the Intercampus Support Form (paper form) for on-line and Excel uploaded* intercampus financial journals. The new integrated intercampus panel provides a means for collecting all the required data on-line. The panel has some of the same data elements that were on the Intercampus Support Form, i.e., Other Campus Department Name, Other Campus Chart String, Description, etc. It eliminates other data fields from the Intercampus Support Form since they are already part of the journal data input, i.e., Originating Department, Date Prepared, Journal #. The intercampus panel also has new fields that will expedite the processing of the responding journal preparation at the other campus or OP, i.e., Other Campus Contact Name, Other Campus Contact Phone number, Other Campus Contact E-mail Address. With the implementation of this panel you will no longer need to send any hard copy documentation to General Accounting (GA) for on-line or Excel uploaded intercampus journals you prepare.
(*For transactions processed using the Excel upload function of BFS-GL, the data for the new panel must be input on-line into BFS-GL after uploading the other journal header and line information to pass edit. Data for the new panel cannot be uploaded as other journal data is.)
Additional Information panel can now be copied from the original journal to a new journal by using the Copy Journal and Reversing Journal feature. Go to General ledger, click on Journals, then click on Copy Journals. Add a run control or use an existing run control (a code you can make up). Enter the Process Request Parameters: select "once" for the Process Frequency, enter the Business Unit, Journal ID, Journal Date, New Journal number, and Journal Date (click reverse only if you want to reverse the signs of your original journal). Then click Run. Make sure you check UC_JRNL_COPY process (the 3rd one) on the Process List of the Process Scheduler Request page then click OK. This is the program that will copy the data entered in the Intercampus Additional Information Panel. A Process Instance number will be assigned for the journal copy process. You can view the status of your journal copy process by clicking on Process Monitor. Click Refresh button to update run status. If Run Status is "success", then journal has been copied. You can find the existing copied journal in Create Journal Entry and complete the journal entry process there.
The preparation of an on-line intercampus financial journal is the same as for other on-line financial journals except that there is an additional panel. (For instructions on how to prepare a BFS financial journal, see the BFS/BAIRS User Productivity Kit or Quick Reference Guides. When you use a financial control account, an Intercampus field (ITC) will appear at the end of your journal line. When you click on the ITC field, the Intercampus Journal Additional Information panel will appear (see next page). If you bypass the ITC field when using a financial control account, an error message will appear when you click the edit check button to validate the journal entry. (The ITC field is grayed out and is not functional except when using an intercampus financial control account number on that line.)
Fields on the Intercampus Journal Additional Information Panel
- Other Campus Department Name: Required Field
- Enter the name of the other campus or OP department with which you are doing business. A maximum of 30 alphanumeric characters is allowed. Use Tab to go to the next field.
- Other Campus Contact Name: Required Field
- Enter the name of the contact person (at the other campus or OP department) with whom you are doing business. Name must be entered using the following convention: [last name] [suffix], [prefix] [first name] [middle name/initial]. Example: Johnson,Mary T. A maximum of 30 alphanumeric characters is allowed. Use Tab to go to the next field.
- Other Campus Contact Phone Number: Required Field
- Enter the full 10-digit telephone number, including the area code (i.e. 5556478201), of the contact person for the department. Enter the digits without parentheses. The BFS system will automatically add breaks. If an extension number is relevant, type it in the "Additional Description" section below. Use Tab to go to the next field.
- Other Campus Contact E-mail Address: Required Field
- Enter the other campus contact person's e-mail address. A maximum of 50 characters is allowed. Use Tab to go to the next field.
- Other Campus Chart String: Required Field
- Enter the chart string of the other campus that is to be charged. Each campus has different chart string formats, numbers of digits and values. (Note: Please verify with the contact person that the chart string is complete and accurate. Invalid chart strings for other campuses delay the processing of the transaction.) A maximum of 50 alphanumeric characters are allowed. Use Tab to go to the next field, or if you do not need to enter additional information in the next field, use the Enter key or click the "OK" button to exit the Intercampus Journal Additional Information panel.
- Additional Description: Optional Field
- This field is alphanumeric. Enter any additional explanation or detailed information you may have that further describes the information entered in the reference or description fields of the journal header or journal line, or information that did not fit into any other fields. The information should be specific enough about the service or item provided so that the other campus will recognize the charge. For example if you are charging UCSF for ten attendees to a seminar, you may want to list the attendees in this description field. A maximum of 254 characters are allowed. Use the Enter key or click the "OK" button to exit.
Note: If you check the ITC copy box/boxes, when you insert a journal line row and enter a financial control account, the data on the Intercampus Journal Additional Information panel is copied from the previous line to the new line.
- If you have a journal entry with up to 250 lines which include intercampus transactions and would normally process it using an Excel upload process, we recommend that you exclude the intercampus transactions and process the intercampus journal in a separate journal entry.
- Journal Header
- In the journal header description, explain the transaction and the purpose of the journal between Berkeley and the other campuses or OP. For example: "To charge UCSF and UCLA for expenses incurred for the use of UCB DNA machine".
- Journal Line
- If you have a charge to the other campus that has multiple chartstrings, you must use one journal line for each of the other campus chartstrings. For example if you have a charge to five different chartstrings at UCLA, you must have five financial control lines. This is so the intercampus panel will have the correct information for each charge including the specific chartstring. You can use the copy feature for each of the other campus fields to simplify the process when there is common information. You can summarize the amount for your department's chartstring into one line if it is appropriate.
- On the other hand, if you are posting to multiple chartstrings to your department and the transaction to the other campus is to one chartstring on the other campus, you can sum the amounts and use one journal line for the financial control entry if all the other intercampus information is the same.
- Reference Field
- If you have a document or invoice number, you should enter the data in the journal line reference field. This will help identify the invoice with the intercampus charge.
- In the journal line description, describe and enter more specific information for the amount entered on the journal line. For example: "R Smith Micro lab use 2/03".
- Intercampus Journal Additional Information
- In the intercampus journal panel, please enter additional information not included in the journal header or journal line description to further detail the transaction. For example, you can list attendees for a recharge or itemize the types of costs associated with the use of the lab such as: access, lab, staff, equipment and supplies.
- If your department or campus is receiving the credit, you will need to initiate the BFS Financial Journal.
- The department org is 00800.
- Please do not enter your own department information on the "Intercampus Additional Information" Panel; please enter the information of the other campus you are doing business with. Please confirm the accuracy of their chartstring before submitting your journal.
If you have any questions regarding this document, please contact General Accounting at email@example.com.