Division of Financial Services
Financial Information Services
Available Balances | Balances by Consolidation | Cash Balances | General Ledger Balance Inquiry | General Ledger Entry | General Ledger Pending Entry | Open Encumbrances | Self-Balancing Accounts | Balance Types
KFS provides limited reporting capability through balance inquiry screens, accessed through the Accounting menu. In KFS, balances are always derived by account and object code.
For each KFS inquiry type, you can enter an account number, and in some cases, a time period, or search for lists of possible values. Some inquiries include budget as well as actual activity and calculate variances. Some inquiries allow you to click a summary value and see more detail, transaction detail in some cases. All inquiries allow you to include or exclude pending general ledger entries. You can download the results of all inquiries.
Results for the Available Balances inquiry show budget, actual, encumbrance, and variance by object code. For expenses, variance equals budget less actual less encumbrance. For revenues, variance equals actual less budget. You can view either consolidated or detailed results, which segregate sub-accounts and sub-object codes.
The Balances by Consolidation inquiry uses object consolidation codes (no asset or liability object codes) to show income and expense totals by category. For each income and expense object consolidation code, results show budget, actual, encumbrance, and variance. The inquiry provides subtotals for consolidation codes categorized as income, income from transfers, compensation, benefits, general expenses, and expense from transfers.
For each object consolidation code, you can drill down to object level, then to object code. You can view either consolidated or detailed results, which break out to sub-accounts, but not to sub-object detail. You can filter to include or exclude cost share sub-accounts.
The Cash Balances inquiry is used to view the net result of the cash offset entries that have been automatically created by KFS as transactions are processed on an account. Cash offset entries are generated on an asset object code and do not affect the operating balance (revenue less expense) of an account. The entries represent cash flow—positive for revenue transactions and negative for expense transactions. Not all entries generate a cash flow offset. This lookup may be of limited use for most account managers.
Results for the Cash Balances inquiry show beginning, annual, and available balances (beginning plus annual) for cash object codes only. A Contract & Grant beginning balance* is also displayed if applicable. You can view either consolidated or detailed results, which segregate sub-accounts and sub-object codes.
* “Contract & Grant beginning balance” is really a misnomer. This amount represents the cumulative total (through the beginning of the fiscal year) for all “inception-to-date” accounts, which include contracts and grants.
Results for the General Ledger Balance Inquiry show beginning (and Contract & Grant beginning) and annual balances by all object codes: income, expense, asset, liability, and fund balance. It also shows balances by month, or the monthly, cumulative year-to-date (including beginning balance) amounts. You can view either consolidated or detailed results, which segregate sub-accounts and sub-object codes, and can filter by balance type or object type.
Note: Balance inquiries for General Ledger Entry and General Ledger Pending Entry provide views of selected accounting entries, rather than balances by account.
The General Ledger Entry inquiry is used to view accounting entries that have posted to the general ledger by account number and fiscal period, or by fiscal year and document number. You can choose to include or exclude pending entries, or further refine the inquiry by a number of other criteria.
The General Ledger Pending Entry inquiry is very similar to the General Ledger Entry inquiry except that it is used to view only accounting entries that have not yet posted to the general ledger. In KFS, transactions are posted to accounts using an overnight batch process. Between the time an entry is created and the time the next batch process is run, entries are classified as “pending.” While pending, an e-doc will change status as it moves through its workflow path. With this inquiry, you can view all pending entries or just those that are fully approved.
The Open Encumbrances inquiry is used to view the details of open encumbrances on an account. There are four types of encumbrances:
Financial accounting through the Kuali Financial System at Cornell requires each account to be a self-balancing entity. This means that “offset” entries are generated for each transaction, thereby balancing the account (debits equal credits), independent of any other account.
Since the “self-balancing” aspect of KFS financial accounts is made possible by all legacy asset and liability accounts becoming asset or liability object codes in KFS, you can, for each account in the system, view the financial position (i.e., balance sheet—assets, liabilities, and fund balance) and activities (i.e., revenues and expenses) at any given point in time.
You will notice the impact of self-balancing accounts in the “cash offset” transaction, as most of the entries you create will automatically generate a cash offset entry. For example, if you complete a Transfer of Funds e-doc to move funding to another account, you will see on your account the expense transaction and also a credit on the cash offset object code (1000)—showing you have just reduced the “cash” balance in your account. Conversely, if you make a deposit to the bank, you will see the revenue transaction and the corresponding increase (debit) to cash.
Representative examples of KFS self-balancing accounts are shown below for Conference Revenue and Expenses and Purchase Supplies.
Note: The highlighted numbers shown in the tables in each example correspond directly to the listed steps immediately preceding them, as well as to the numbers in other tables within the same example.
For the conference example shown (which assumes a starting current year of FY10), all transaction activities are posted in an Operating Account as follows:
1. Revenue of $5,000 is collected (but not yet earned): Debit to Cash Offset object code (bank deposit); Credit to Deferred Revenues object code.
2. Expenses of $3,500 are paid via a disbursement voucher: Debit to Prepaid Expense & Deferred Charges object code in Operating account; Credit to Cash Offset object code.
| Entry No. | Account Name | Object Code | Debit | Credit |
|---|---|---|---|---|
| (1) | Oper Acct D013000 | (1000) Cash Offset | $5,000 | |
| Oper Acct D013000 | (2240) Deferred Revenues | $5,000 | ||
| (2) | Oper Acct D013000 | (1610) Prepaid Exp. & Deferred Chrgs | $3,500 | |
| Oper Acct D013000 | (1000) Cash Offset | $3,500 |
In the following Year (FY11), the Operating Account shows:
3. Revenue of $5,000 is recognized when the event occurs: Debit to Deferred Revenues object code; Credit to Revenue-Conferences object code (income recognized).
4. Expenses of $3,500 are recognized when the event occurs: Debit to Expense object code (expense recognized); Credit to Prepaid Expense & Deferred Charges object code.
| Entry No. | Account Name | Object Code | Debit | Credit |
|---|---|---|---|---|
| (3) | Oper Acct D013000 | (2240) Deferred Revenues | $5,000 | |
| Oper Acct D013000 | (4030) Revenue-Conferences | $5,000 | ||
| (4) | Oper Acct D013000 | (6xxx) Expense | $3,500 | |
| Oper Acct D013000 | (1610) Prepaid Expense & Defrd Chrgs | $3,500 |
After entries are made, ending account balances for July FY11 are as follows:
| Account Name | Object Code | Debit | Credit | Net Balance |
|---|---|---|---|---|
Balance Sheet Activity |
||||
| Oper Acct D013000 | (1000) Cash Offset | (1) $5,000 | (2) $3,500 | $1,500 |
| Oper Acct D013000 | (1610) Prepaid Expenses & Defrd Chrgs | (2) $3,500 | (4) $3,500 | $0 |
| Oper Acct D013000 | (2240) Deferred Revenues | (3) $5,000 | (1) $5,000 | $0 |
Operating Activity |
||||
| Oper Acct D013000 | (4030) Revenue-Conferences | (3) $5,000 | ($5,000) | |
| Oper Acct D013000 | (6xxx) Expense | (4) $3,500 | $3,500 | |
For the KFS Purchase Supply example, all transaction activities are posted in an Operating Account as follows:
1. Supplies totaling $50 are purchased: Debit to Supplies-Office object code; Credit to Accounts Payable Offset object code.
2. Supplies totaling $50 are paid for: Debit to Accounts Payable Offset object code, Credit to Cash Offset object code.
| Entry No. | Account Name | Object Code | Debit | Credit |
|---|---|---|---|---|
| (1) | Operating Acct D013000 | (6550) Supplies-Office | $50 | |
| Operating Acct D013000 | (2900) Accounts Payable Offset | $50 | ||
| (2) | Operating Acct D013000 | (2900) Accounts Payable Offset | $50 | |
| Operating Acct D013000 | (1000) Cash Offset | $50 |
After entries are made, ending balance accounts are as follows:
| Account Name | Object Code | Debit | Credit | Net Balance |
|---|---|---|---|---|
Balance Sheet Activity |
||||
| Oper Acct D013000 | (1000) Cash Offset | (2) $50 | ($50) | |
| Oper Acct D013000 | (2900) Accounts Payable Offset | (2) $50 | (1) $50 | $0 |
Operating Activity |
||||
| Oper Acct D013000 | (6550) Supplies-Office | (1) $50 | $50 | |
Balance Types are used to categorize types of transactions in KFS and are important when making queries of account balances.
Since all posted transactions (and, therefore, balances) in KFS are assigned a balance type (category)— and several types of balances are supported by the application—you’ll want to know what the balance types are so that you can understand exactly what financial information you are pulling into your inquiry or report.
| Balance Type Code | Balance Type Code Name | Description |
|---|---|---|
| A2 | A21 BALANCES - LABOR LEDGER ONLY | When a salary expense transfer is made, the impact is reflected in the current labor period (using AC balance type) and the last period for the effort certification period (using A2 balance type). |
| AC | ACTUAL BALANCE | All “real” G/L activity—for example, the beginning balance, accounting transactions, and monthly activity balances—are recorded using the AC balance type. This will likely be the most commonly used balance type. |
| BB | BASE BUDGET | The balance type of BB represents the University’s fiscal year budget. It is created annually through the budget process, and becomes the basis for the creation of the subsequent fiscal year’s budget. |
| CB | CURRENT BUDGET | The CB balance type is used for in-year budget vs. actual information through the use of the Available Balances or Balances by Consolidation inquiries. The University’s fiscal year budget is copied over to the CB balance types at the start of each fiscal year. CB is also used for Contracts and Grants and other inception-to-date budgets. |
| CE | COST SHARE ENCUMBRANCES | Encumbrances with a CE balance type are created on the cost share funding account whenever an encumbrance is created on the actual Contract and Grant cost share sub-account. |
| EX | EXTERNAL ENCUMBRANCE | Commitment of funds generated by purchase orders are recorded using the EX balance type. |
| IE | INTERNAL ENCUMBRANCE | Internal Encumbrances represent the commitment of funds generated by the salary on budgeted positions. |
| MB | MONTHLY BUDGET | Transactions with the MB balance type are only created when monthly budgets are used on a budget adjustment e-doc. |
| NB | CLOSE NOMINAL BALANCE | The NB balance type is only used when entries are made at end of year to "zero out" all revenue and expense object codes (on high-level object codes) and close them to the fund balance object code. Note: As part of the year-end closing process, the beginning balances for the new fiscal year are also created (using the AC balance type). |
| PE | PRE-ENCUMBRANCE | Pre-encumbrances, created and relieved using the Pre-encumbrance e-doc, allow departments to further commit funds to facilitate financial management. |
| RE | YEAR END BUDGET REVERSION | Reversion entries are only made at end of year to close balances in one account to another. |
| TB | TRUSTEE BUDGET | The TB balance type represents the university’s fiscal year budget that was submitted and approved by the Board of Trustees. It precedes the creation of the subsequent fiscal year’s budget. Trustee Budget often has less detail than what becomes the final budget, which gets loaded into KFS. |
