1. Oracle General Ledger (GL) Good Practice Journals

2. Reliable Information for External Reporting Management Accounts Statutory Accounts Finance Group University Board HESA returns Transparency Review Freedom Of Information Act VAT Corporation Tax These reporting requirements need a robust underlying Chart of Accounts and strict rules to ensure the reliability of information to avoid penalties

3. Account Structure – ReCap 0%0000009999Brought Forward Balances (Jo & Steve + Schools) DR & CR on 0% 1%1000019999Salaries (Rhian)Direct (Cyborg) 2%2000029999Salary recharges (Schools)DR & CR on 2% 4000047999Direct expenditureDirect 6910069999Internal TradeRecharged (net off) 48%4800048999Recharges / Overheads [internal] Use 68% and 48% together 68%6800068999Recharges / Overheads [internal] 6900069099Allocations (Jo)DR & CR on 690% 7%7000079999External incomeDirect 8000099999Balance sheet

4. Problems with Accounts Preparation 1.Income on expense codes (net off against travel claim) 2.Transactions on opening balance codes (careless choice of account) 3.Transfers not netting off & charged to expenses (dr 40150 cr 68500) 4. Staff costs in non staff (recharging staff on 48500 and 68500)

5. Good Practice - Journals AA11001234 : School Account 42510 : STATIONERY Invoice300 42510 : STATIONERY Journal-100 Total 42510 200 KC11201001 : Conference 42510 : STATIONERY Journal100 Total 42510 100 It is perfectly acceptable to transfer a share of an expense to another analysis code using the original account. This way the correct amount will appear on reports. [Could equally have been split over two lines to start with] Transfer part of an Invoice / to another Analysis Code (Recharge)

6. Good Practice - Journals AA11001234 : School Account 1 2151 : CLINICAL ACADEMIC Cyborg1200 2 2151 : RECHARGE CLINICAL ACADEMIC Journal-150 KC11201001 : Conference 2 2151 : RECHARGE CLINICAL ACADEMIC Journal150 Salaries should be recharged using the 2 accounts. This way the original cost of the salaries is retained on 12151 but it can be seen that the overall staff cost was reduced using 22151. This will help inform strategic planning decisions. It is extremely important to ensure that the 22151 transaction nets off to nil. It is also important that the same account is used on both sides of the journal. Recharging part of a salary / to another Analysis Code (Cross Charging)

7. Projects accounts to use DA STF Admin and Support28201 DA STF Casual20731 DA STF Clinicians22111 DA STF Co Investigator24101 DA STF Fellows21181 DA STF In Kind21181 DA STF MPSS26101 DA STF Nurses24251 DA STF Other20731 DA STF Permanent24101 DA STF Principal Investigator21111 DA STF Professorial21111 DA STF Research Infrast Tech27108 DA STF Researchers24201 DA STF Technicians27201 Please note : Any journals should be posted by RACDV only When transactions are posted from projects to GL they follow a mapping rule. Here is a example of Expenditure types and there corresponding accounts.

8. PROJECTS 500123 GL AA45501001 DA STF Nurses24251 (1) Recharge Staff1,000 dr(1,000) cr Converts To 24251 RA00000000AA45501001 (3) 24251 Nets Off to NIL in GL24251 1,000 dr(1,000) cr The effect of recharging from GL to Projects (2) Overnight posting to GL By ensuring that the correct account / expenditure type is used, the journal nets off to NIL once it Has been posted In General Ledger In this example salaries are recharged to a project (1). Overnight the project transaction is posted to GL (2) The mapping rules convert DA STF Nurses to 24251 (3)

9. Good Practice - Journals AA11001234 : School Account 48500 : INTERNAL TRANSFER Journal1500 KC11201001 : Conference 68500 : INTERNAL TRANSFER Journal-1500 Where a transfer of money takes place e.g. a school making a contribution to a conference, then transfer accounts should be used. 68500 and 48500 can be used together as they both end in “500”. It is extremely important to ensure that the 68500 and 48500 net off to nil. Transfer of funds / to another Analysis Code

10. Bad Practice - Journals CA60001234 : INSRV 71606 : GRAPHICS INCOME Invoice-300 71606 : GRAPHICS INCOME Journal100 Total -200 KC11201001 : Conference 48500 : TRANSFER Journal-100 Total 42510 -100 It is NOT acceptable to transfer a share of income to another analysis code using 7% and 48% account combinations. This way, on the Financial Statements, the income will be reduced and also the expenditure.

11. Journal Summary 1.Transfer Expenses using the account they were originally charged to. 2. Correct Invoices using the Invoice Lines 3. Correct salaries using the 1 account where originally charged 4. Transfer salaries using the salary recharge accounts 20000 to 29999. 5. Transfer funds by Debiting 48500 and Crediting 68500. 6. Close analysis codes by Debiting 48200 and Crediting 68200. Schools should always Consult RACDV before Posting entries between Projects and GL

12. The effect of Journals upon the Financial Statements When producing the financial statements all accounts that begin with 48 and 68 should net off to nil. Otherwise the expenditure of the university will be over or under - stated. This is why we take special care when posting journals. Even when RACDV charge overheads they debit 48160 (its equivalent in Projects) and credit 68160 in the school, ensuring that the net balance on these accounts is nil. Then all transactions beginning with 68 or 48 can be ignored when producing the financial statements. Internal Trade nets off against expenditure.

13. Brought Forward Journals Management Accounts SchoolTotal AH4550010003300Reinstate Balance From Reserves(250,000) AH4550010003400Reinstate Balance90,000 AA4550100103400Reinstate Balance(15,000) AA4550100203400Reinstate Balance(10,000) AB4550100103400Reinstate Balance(5,000) AC4550100103400Reinstate Balance(10,000) AJ4550100103400Reinstate Balance(10,000) AJ4550100203400Reinstate Balance(10,000) AJ4550100303400Reinstate Balance(10,000) AJ4550100403400Reinstate Balance(10,000) AJ4550100503400Reinstate Balance(10,000) (250,000)0 Rules: You can only use 03400 with AA to AJ codes Only use 03400 on its own. 03400 account balance must always be NIL.

14. Budget Journals When transferring budgets within the TPA range of analysis codes (AA_AJ) it is important that the journal nets off to NIL.

15. BUDGET JOURNAL NON STAFF EXPENDITURE Budget AH45500100 40115 CONSUMABLES MANACC (250,000) AA45501000 40115 CONSUMABLES 115,000 AA45501000 40150 MISCELLANEOUS EXPENSES 26,000 AA45501000 40520 STAFF REMOVAL EXPENSES 0 AA45501000 40610 STAFF TRAINING COSTS 0 AA45501000 40720 STUDENT DEMONSTRATOR 0 AA45501000 41320 RESEARCH STUDENT STIPENDS 43,000 AA45501000 41740 SUBSCRIPTIONS 0 AA45501000 42260 TRAVEL & SUBSISTENCE UK 30,000 AA45501000 42262 TRAVEL & SUBSISTENCE O/S 36,000 0 If the budget journal does not net off to NIL then it will be duplicated and distort the BMR Reports.