PROCESSING AN INTERNAL BILLING DOCUMENT ON-LINE TRAINING Welcome to Processing an Internal Billing Document On-line Training. This guide will first provide an overview of the Journal Entry Documents in KFS and then review the Internal Billing document. Fiscal Services Office Rev September 21, 2016

Overview KFS has six different electronic documents (eDocs) to process journal entries. Use is dependent on the type of transaction. In most cases, eDocs will route for at least one other approval other than the initiator to ensure separation of duties for internal control purposes. On Internal Billing eDocs the staff approving the expenditures involving extramural accounts (and not the initiator or service provider) is responsible for the following certification: Certification that the amounts are: (1) allowable per sponsored agreement / Office of Management and Budget (OMB) Cost Principles (2) allocable - supports / benefits the project within the award period and (3) reasonable KFS has six different electronic documents used to process journal entries. Use of the different electronic documents or eDocs is dependent on the type of transaction. In most cases, eDocs will route for at least one other approval other than the initiator to ensure separation of duties for internal control purposes. On Internal Billing documents the staff approving the expenditures involving extramural accounts (and not the initiator or service provider) is responsible for the following certification: Certification that the amounts are: (1) allowable per sponsored agreement / Office of Management and Budget (OMB) Cost Principles (2) allocable - supports / benefits the project within the award period and (3) reasonable

Six Journal Entry eDocs Distribution of Income and Expense (DI) Distribute income or expense from one account to one or more account(s) Distribute costs to sub account(s) or sub object(s) General Error Correction (GEC) Correct account(s) and/or object code(s) on previously posted entries Transfer of Funds (TF) Transfer cash between accounts Internal Billing (IB) Bill for goods/services provided by one university department to another university department Service Billing (SB) Note: Use of this document requires special permissions and authorization Salary Expense Transfer (ST) Correct or transfer salary and fringe benefit expenses from one account to one or more account(s) The six journal entry documents in KFS are the Distribution of Income and Expense, the General Error Correction, the Transfer of Funds eDoc, Internal Billing, Service Billing and Salary Expense Transfer .

Internal Billing Journal Entry eDoc Common Uses Distribution of Income and Expense (DI) Distribute income or expense from one account to one or more account(s) Distribute costs to sub account(s) or sub object(s) General Error Correction (GEC) Correct account(s) and/or object code(s) on previously posted entries Transfer of Funds (TF) Transfer cash between accounts Internal Billing (IB) Bill for goods/services provided by one university department to another university department Service Billing (SB) Note: Use of this document requires special permissions and authorization Salary Expense Transfer (ST) Correct or transfer salary and fringe benefit expenses from one account to one or more account(s) The Journal entry Doc discussed in this tutorial is the Internal Billing eDoc

Internal Billing (IB) Used to bill for goods or services provided by one university department to another university department. Reflects internal income to the provider and expense to the customer. Prepared by the department providing the goods or services. Document does not route to the FO/FA of the income accounting lines. Navigation: Main Menu tab > Transactions > Financial Processing > Internal Billing The Internal Billing (IB) eDoc to is used to bill for goods or services provided by one university department to another university department, reflecting internal income to the provider and expense to the customer. Note: The Internal Billing (IB) eDoc should be prepared by the department providing the goods or services since the document does not route to the Fiscal Administrator of the income accounting lines. Navigation: Main Menu tab > Transactions > Financial Processing > Internal Billing

IB Document Layout IBs have eight (8) tabs. The Document Overview tab is where you enter a description and further explanation to describe the billing. The Accounting Lines tab is used to enter the Account Billing information. The Notes and Attachments tab is used for attaching supporting documents as well as any certification needed if extramural accounts are involved.

Internal Billing Document Overview Tab Complete required fields: Description: Enter 3 digit FO Code and short description. Explanation: enter a more detailed description of the purpose for the IB. The first tab on the IB is the Document Overview tab. In the Description field enter your 3 digit FO Code followed by a short description for the document. Use the Explanation field to provide a more detailed explanation of the description. The Total Amount field will display after the accounting lines are entered and the document is saved. This field cannot be edited.

IB Accounting Lines Tab – Income/Expense Income section represents an increase in income to the provider of goods/services. Expense section represents an expense to the customer. Required fields to complete are Chart, Account Number, Object and Amount. Enter information directly into fields or use the drop downs or perform lookup by clicking on magnifying glass icons. Click “add” button to record accounting line in the document. Total Income must match Total Expense. The Income section of the Accounting Lines tab represents an increase in income to the provider of goods. The Expense section of the Accounting Lines tab represents an expense to the customer. Required fields to complete are Chart, Account Number, Object and Amount. You may also use the Chart or Object Code lookup by clicking on the magnifying glass icon and performing a search for the correct code. Be sure to click the “add” button. Remember, the amounts from the Income Accounting Lines must match the total entered on the Expense Accounting Lines.

Internal Billing Items Tab Optional tab. If used, Quantity and Item Cost are required fields. No impact on the Accounting Lines tab. Does not need to balance to the accounting lines. Completing Items tab does not automatically update the total of the accounting lines. The Items tab is optional; however, if you choose to use this tab, Quantity and Item Cost are required fields. This tab does not have any impact on the Accounting Lines tab, nor does it need to balance to the accounting lines. Therefore, filling out the Items tab does not automatically update the total of the accounting lines. Example: If the Chemistry Stockroom processed an IB to charge a department for chemical supplies and wanted to include details of the items provided such as 2 liters of hydrogen peroxide at $10.00 per bottle, the Items tab could be completed.

IB Capital Edit Tab Completion required if a Capital Object Code used in the Accounting Lines.   Asset Number field is required if billing is for a known asset. Complete Create New Asset Section if Asset Number is not known. After the asset added Campus, Building and Room fields appear, & may be required. The Capital Edit tab is required if this Internal Billing is for a known asset.   If the Asset Number was not populated then the fields in the Create New Asset data box are required. Note: After the asset has been added then the fields for Building and Room will appear, in most instances, are required.

Internal Billing General Ledger Pending Entries (GLPE) Tab Displays the debit/credit information based on the accounts used in the Accounting Lines tab. Displays while document is SAVED or ENROUTE. Once fully approved, route status changes to FINAL, the transactions post to the GL in the nightly process and the data on this tab is subsequently removed. Verify the GLPE against the accounting entries. The General Ledger Pending Entries displays the debit/credit information based on the accounts used in the Accounting Lines tab. The data will display while the document is SAVED or ENROUTE. When the document is fully approved and the transactions are posted to the General Ledger during the nightly batch process, the data on this tab is subsequently removed. Note: It is good habit to check the GLPE to verify the accounting entries for your respective eDoc.

IB Notes and Attachments & Ad Hoc Recipients Tabs When Extramural Accounts involved Attach invoice / worksheet to support charges. Certification that amounts are (1) allowable per sponsored agreement / OMB Cost Principles (2) allocable - supports / benefits the project within the award period and (3) reasonable. Attach evidence of PI’s authorization, if applicable. If >90 days from posting of initial transaction, explain why not timely and how & how billing will be made timely in the future. Use the Ad Hoc Recipients tab to route the document to someone who is not in the normal routing. If notes and/or attachments are necessary click on the Notes and Attachments tab and populate the fields where applicable.   For IBs involving extramural accounts, the following should be documented: Attach invoice / worksheet to support charges Certification that amounts are (1) allowable per sponsored agreement / OMB Cost Principles (2) allocable - supports / benefits the project within the award period and (3) reasonable Attach evidence of PI's authorization, if applicable For instances where the billing is being made more than 90 days from posting of initial transaction, include an explanation as to why the billing was not made in a timely manner and how billings will be made timely in the future. If you need to ad hoc route the document to someone who is not in the normal routing, click on the Ad Hoc Recipients tab and populate the fields where applicable.

Internal Billing Route Log Tab The Route Log tab can be reviewed prior to and/or after the submission of the eDoc to see the workflow of the document. Note: Internal Billing eDocs only route to the FA of the account(s) in the Expense section. Click “submit” to begin workflow routing.

KFS Contacts FMO website - http://www.fmo.hawaii.edu/ Kuali Financial - kfs.hawaii.edu/ Submit a Trouble Ticket - http://www.hawaii.edu/kualifinancial/feedbackForm.php KFS Help Desk - ph. 956-4357 Financial Systems Training - ph. 956-4357 or email fissrv@hawaii.edu

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