4Banner Finance – System Overview An online product which utilizes the Oracle Relational Database Management System (RDBMS)Can function as a stand-alone system or integrate with various Banner Systems, enables you to access information that already exists on any of the other systemsHas both the functionality and flexibility to serve multiple users through a common database of financial informationNot only responds to accounting requirement , but also addresses your need for strategic and operational informationProvides a comprehensive, integrated financial management system that enables you to track, maintain, and process all of your relevant financial data
5Major Features of Banner Finance Comprehensive Reporting – numerous standard hard copy reports and online inquiry formsMenu and Help Forms – to assist you with online documentationOnline Data Entry – the system subjects the data to the appropriate validation testValidation Forms – flexibility to enter values that meet specific requirements, do not need to make any coding changesMaintenance Forms – allows to enter data with ease and assuranceAudit Trail – provides for tracking data from point of entry through archivingProcessing Rules – can format the processing rules for specific requirement, requires some codingUser-defined Security – ensures that only authorized users can view and / or update certain dataOnline Documentation – comes with a dynamic help set to help you navigate through the system and its forms
6Modules in Banner Finance General LedgerPurchasing and ProcurementResearch AccountingAccounts PayableAccounts ReceivableBudget Development and Position ControlFixed AssetsStore InventoryCost AccountingEndowment ManagementInvestment Management
7General Ledger Module Core of the Banner Finance System Supports complete Fund AccountingUser-defined Chart of AccountsRule-based processingUser-specified security optionsProvides extensive financial information query capability
8List of Banner Finance Ledgers General LedgerOperating Ledger (OPAL)Encumbrance LedgerGrant Ledger
11Banner Finance vs. Oracle Financials Banner Finance Oracle Financials 1. Structure of COA (FOAPAL)1. Structure of COAConsists of 7 segments (Chart-Fund-Orgn-Acct-Prog-Activity-Location)Consists of 6 segments (Fund-Prog-Acct-Orgn-Controller-Institution)Consists of 37 characters (of which 12 are optional)Consists of 26 charactersAllow several levels of hierarchy for each segment except Activity CodeHas to define Parent / Child Segment Values, Rollup Groups and Summary Account TemplateFund Type – links to user-defined fund codes, and provides a definition of each fund for proper categorizationNot applicable
12Banner Finance vs. Oracle Financials Banner Finance Oracle Financials Account Type – links to user-defined account codes, and provides a definition of each accountNot applicableNo code combinations, can use index codeHas code combinationsPool accounts for budgetary controlSummary Accounts for budgetary control
13Banner Finance vs. Oracle Financials Banner Finance Oracle Financials 2. Operating Ledger2. Operating LedgerTransactions of income and expenditure types would be posted to the income / expenditure accounts in the Operating Ledger and the control accounts in the General Ledger.No Operating Ledger, all transactions are recorded in the General Ledger.General Ledger shows all the balance sheets accounts and the control accounts only.Has to refer to the Operating Ledger for details of the income and expenditure accounts.
14Banner Finance vs. Oracle Financials Banner Finance Oracle Financials 3. Bank Fund, Cash Account & Cash Interfund Accounts3. Bank Fund, Cash Account & Cash Interfund AccountsThe Bank Fund is a special fund created to show the total cash and the breakdown of where that cash is deposited.No bank fund is maintained.The use of Bank Fund and Cash Interfund Accounts permits individual cash balances by fund and enables you to see the entity’s cash position in total.
15Banner Finance vs. Oracle Financials Banner Finance Oracle Financials 4. Research Accounting Module4. Research Accounting ModuleEnables you to track grants from the time you submit a proposal to a funding agency through the award and disbursement process.Not applicableEnables you to perform accounting, reporting and billing functions after you receive a grant award.The Grant Inception to Date Report displays operating account information from the inception of a grant to the specified as of date.
16Banner Finance vs. Oracle Financials Banner Finance Oracle Financials 5. Accounts Receivable5. Accounts ReceivableFeed data from the Banner Student, can refer to the system for individual records.Receipts are entered into the system by batch, have to refer to other system for individual records.Refunds to students are processed by the Accounts Receivable Section.Refunds to students were processed by the Payment Section.
17Banner Finance vs. Oracle Financials Banner Finance Oracle Financials 6. Purchasing and Procurement6. Purchasing and ProcurementThe search function is less powerfulThe search function is more powerful (e.g. PRs & POs can be searched by description, buyers, etc.)The Document History Form – displays the processing history of purchasing and payment documents, identifies and provides the status of all documents in the processing path for the document you select.No such summary is available.
18Banner Finance vs. Oracle Financials Banner Finance Oracle Financials 7. Accounts Payable7. Accounts PayableWith the soft copy of the bank statement from bank, bank reconciliation could be done automatically by the system.Bank reconciliation is done manuallyMay enter more than one vendor invoices in one Invoice Document.One Invoice Document is for one vendor invoices onlyNeed to determine which Bank Code to use when processing the invoices.Bank Code is required when issuing cheques.
19Banner Finance vs. Oracle Financials Banner Finance Oracle Financials 8. Reporting8. ReportingStandard Reports from the system are inadequate and not informative.Standard reports from the system are more informative.No Financial Statement GeneratorFinancial Statement Generator (FSG) – users may define financial reports as necessary to meet special reporting needs.
20Banner Finance vs. Oracle Financials Banner Finance Oracle Financials 9. Others9. OthersGeneral Encumb. – able to encumber or reserve fund for future commitments without issuing POs.To encumber or reserve fund for future commitments, need to issue POs.Users can choose whether to use document or commodity level accounting when inputting PRs, POs & invoices.Not applicableCommitted encumb.are identified as having been rolled from the prior year & the amount of the encumb. when liquidated would be reflected in the Prior Year Encumb. Control A/C in the current year.No such distinction is maintained.
21Banner Finance or Oracle Financials? Your Choice!
23Banner Finance Implementation Remarks : Agreement with SCT was signed in July 2001, Banner Finance was implemented on 1 July 2002.Major TasksDuration / Time Spent1. Initial Setup and InstallationHardware and Software set up10 man-daysDesigned the COA in Excel file format and uploaded to the Banner Finance Database TablesOct 2001 – Jan 2002Developed and entered applicable validation table data in various modulesDec 2001 – Jan 2002First test for the Banner Finance – before any approval and security set upFeb 2002 – Mar 2002Revised the COA and initial set up of various modulesMar 2002
24Banner Finance Implementation Major Tasks Duration/Time Spent Second test for the Banner Finance – after the approval and security set upApr 2002 – Jun 2002Interfacing tasks and their testingVax Payroll System Banner FinanceCitibank Paylink ---- Banner FinanceE-payment & JETCO ---- Banner FinanceJan 2002 – Jun 2002Set up in Accounts Receivable and testing of Interface from Banner StudentApr 2002 – Jun 2002Report Development – ITSC to create various essential reports (around 30) that are not available in the Banner Finance90 man-days
25Banner Finance Implementation Major Tasks Duration/Time Spent 2. Training / ConsultationInitial trainingProblem solving during implementation & Year endData Conversion of GITDAug 2001 – Apr 2002Apr 2002 – Aug 2002Jul 2002 – Oct 20023. Data ConversionsVendor, Commodity listings from Oracle Tables to Banner TablesEntered the outstanding POs in Oracle Financials to Banner Finance manuallyMar 2002 – Apr 2002July 2002
26Banner Finance Implementation Major Tasks Durations 4. Form and Data SecuritiesReviewed the forms and processes in various modules, classified into different categoriesSet up security and approval queue in the systemJan 2002 – Mar 2002Mar 2002
28Banner Interfaces Banner Student A/R to Finance Banner Alumni to FinanceBanner Payroll to Finance (not yet implemented)In Lingnan, three modules will feed data to Banner Finance. They are Banner Student, Banner Alumni and Banner Payroll. The former two are currently adopted by Lingnan while the Banner Payroll is not yet implemented. Though we do not have implemented Banner Payroll, we have some basic idea on HOW Banner Payroll feed data to Banner Finance.
29How to Interface? Pass Retrieve StudentA/RPassRetrieveProcess (A)Interface Process topass the transactionsfrom corresponding modulesto GURFEED tableProcess (B)Interface Process to retrieveAnd validate the GURFEEDData and transform them intoGeneral Ledger andJournal Vouchers transactionsGURFEEDAlumniRule ClassHow to interface?Let’s look at this diagram, Pink Circle represents different modules in Banner. i.e. Student A/R, Alumni, Payroll and Finance.When user wants to feed the data to finance, they will run a process (A) to retrieve the data from the Student A/R, Alumni or Payroll first. This process will analyze these data by referencing to the Rule defined and adding the FOAPAL information to it. These massage data will be stored on the GURFEED table.The data in the GURFEED will then be passed through another process. This process (B) will validate the data and transform them into the G/L and J/V tables. Then, these data will then be able to be view through the Banner Finance module.The interfacing processes are attached to a set of rule classes defined by SCT Banner. These rule classes select the appropriate account (FOAPAL) for liquidating General Ledger or Operating Ledger account balancesRule class allows to process:Reduces outstanding balances on individual charge or payment detailed items on the individual account Forms.Selects the appropriate account (FOAPAL) for liquidating General Ledger or Operating Ledger account balances along with selecting the appropriate Rule Classes for Finance posting.(Note: GURFEED is a collector table through which all interfacing transactions to the Finance System are passed.)PayrollFinanceFOAPAL
30Banner Student A/R to Finance Student DepositsHostel Deposit, Chinese Test DepositAfter a certain period, when a deposit is released or returned to the payee, the record will be converted to the Student Charges & PaymentsStudent Charges and PaymentsLaser Copies Fee, Hostel Fee, refund of Hostel DepositMiscellaneous ChargesTransactions other than Student Deposits & Student Charges and PaymentsWhat data will be fed to Finance?Mainly three types. Student Deposits, Student Charges and Payments, and Miscellaneous Charges.The four types of data you noted represent distinct activities that are recorded differently from each other in Banner and need to be processed separately by TGRFEED.Student charge and payment records can be created in a number of ways including fee assessment processing and manual entry on TSAAREV or TSADETL, etc. These transactions are recorded in TBRACCD.Student deposits, such as housing, are entered in the Deposits block of TSADETL and are recorded in the TBRDEPO table. When a deposit is "released," a record is created in the TBRACCD table at that time.Miscellaneous transactions are entered on the Miscellaneous Transaction Form (TFAMISC or TSAMISC depending on whether you use Banner Finance) and recorded in TBRMISD. Unlike TBRACCD and TBRDEPO, PIDM is not a required field in TBRMISD.Re miscellaneous transactions, if something cannot be recorded using TSADETL or TFADETL, then the miscellaneous form would be used. For example, some schools collect a fee when a transcript request is made and then record the total amount collected at the end of the day. In this case, since the one summary transaction at the end of the day doesn't have a PIDM associated with it, the entry would be made using a miscellaneous form.Cashiering sessions are used to organize transactions by cashier (user ID) and session number. All transactions in TBRACCD, TBRMISD and TBRDEPO are assigned a user ID (cashier) when they are created. When a cashiering session is closed, the session number and ending date are recorded in TBBCSHR and updated for all transactions included in the session. TBBCSHR is also used to record a bank code and bank deposit number for each cashiering session. This enables one to associate a cashiering session and user with specific transactions and a bank deposit and is important for auditing and tracking purposes.cashiering sessions are not created by a user, but by the system so there isn't anything that a school would need to do to create a session. Cashiering sessions are closed and finalized by users or by running TSRCLOS. Since each transaction needs to be associated with a cashiering session, the system will create a new session for a user if one is not presently open when a transaction is entered.
31Banner Student A/R to Finance Run a data extraction process to feed Student A/R data to GURFEED tableRun a data retrieval process to get data from GURFEED table and insert them to the Ledger and Journal Voucher TablesA/RTransactions(1)Student A/RInterface ProcessGURFEED(2)Ledgers andJournalVouchers(3)This diagram shows how the data feed to Finance.Detail codes are comprised of descriptive information, both Chart of Accounts Code Elements and Rule Classes. This data is highly interactive.In the Detail Code Control Form (TFADETC or TSADETC), Rule Classes consist of three fields, two allowing the Application of Payments Process to perform two basic functions:Reduces outstanding balances on individual charge or payment detailed items on the individual account Forms.Selects the appropriate account for liquidating General Ledger or Operating Ledger account balances along with selecting the appropriate Rule Classes for Finance posting.FinanceInterface Process
32Banner Alumni to Finance Gift and PaymentsActual hard accountable dollars that are received by the institutionPledgeA promise to give moneyDue PaymentsActual hard accountable dollarsUsed within the Membership portion of the system to pay for the various membership programs3 types of data could be fed to Banner Finance. Only the first item is currently adopted by Lingnan.Gift and Payments (AGAGIFT)Pledge (AGAPLDG or AGAPMAS)Due Payments (AAADUES)
33Banner Alumni to Finance Run a data extraction process to feed Alumni data to GURFEED tableRun a data retrieval process to get data from GURFEED table and insert them to the Ledger and Journal Voucher TablesAlumniTransactions(1)AlumniInterface ProcessGURFEED(2)Ledgers andJournalVouchers(3)FinanceInterface Process
34Banner Payroll to Finance EncumbranceActual PayrollPosition BudgetFor Banner Payroll, three types of data will be fed.Encumbrance, Actual Payroll and Position BudgetThe benefit of the encumbrance accounting feature is the ability to have thesystem control the expenditure budget from the General Ledger, reducing therisks of potential over expenditure. This is often a legislated requirement forpublic organizations.(1) reserves within anexpenditure subaccount the anticipated amounts required tocover these obligations as they become payable after thegoods are delivered or the services are rendered, and(2) reduces the available fund balance in that particularsubaccount.Thus, the recording of encumbrances serves asa valuable aid to departments for keeping expenditureswithin amounts budgeted.
35Banner Payroll to Finance Budget &ActualExpense(1)Run a data extraction process to feed Budget and Actual Expense to GURFEED tableRun a data retrieval process to get data from GURFEED table and insert them to the Ledger and Journal Voucher TablesPayrollInterface ProcessGURFEED(2)Ledgers andJournalVouchers(3)FinanceInterface Process
36Banner Interfaces Summary “Pass and Retrieve” Interfacing ProcessesStudent A/R, Alumni, Payroll “pass” the data to a table for interfacing i.e. GURFEED tableFinance “retrieves” the data from the GURFEED table and transforms them into General Ledger and Journal Voucher transactionsRule-Based ProcessingDefine the FOAPAL for the rule class. The rule class then selects the appropriate account (FOAPAL) for liquidating General Ledger or Operating Ledger account balances
38Customization Reasons: Banner’s reports are relatively inadequate and not perfectly fit the needs of LingnanDevelop a more user-friendly interface to download/ upload records from/ to Banner Finance
47Risks and Difficulties with Banner Finance Due to the limited supply of manpower and time, we were not able to arrange for the parallel run.Not enough testing for the COA, problems arose after the implementation.The SCT consultants were not well prepared for the training session and were not helpful in solving our problems.Training material were inadequate and we had to download the user manuals from the Banner website, which was extremely time consuming and confusing.The system cannot handle Chinese characters.Difficult to avoid the creation of duplicate Banner ID.Causes changes in workflow and re-allocation of job duties both within the Office of the Comptroller and among various departments.Electronic PR through the Web for Finance does not cater for commodity level accounting.Difficult to trace feed documents.Standard reports are inadequate and do not fit our requirements.