Some accounting transactions involve the movement of income, expense, assets and liabilities while others only pertain to planned or budgeted financial activity. How do you know which electronic document (e doc) to use? Follow the link below to find out.
Below is a summary chart showing the uses and restrictions of four common e doc whose purposes, although similar, are in fact specific and distinct. Further details and explanation on each e doc is available by clicking on the e doc abbreviation.
|e-doc Name||General Error Correction (GEC)||Transfer of Funds (TF)||Distribution of Income and Expense (DI)||Budget Adjustment (BA)|
|Who Can Use it||Department Users Central Users||Central Users||Department Users Central Users||Department Users Central Users|
|When to Use it||tocorrect inappropriate or incorrect general ledger entries||to transfer funds (cash) between accounts||todistribute the income, expense, assets and liabilities from a holding account to one or more appropriate account(s)||to modify a base budget, a current budget or both|
|Example of when to use||to move the expense to the correct account when supplies have been charged to the wrong account||to cover an overdraft, reimburse an account for an expense, or to fulfill a funding commitment||to move an event expense from a departmental main account to other accounts that also agree to share the expense||to move the budget from one account to another, or to add a budget to an account for both revenue and expense|
|Object Code and other Restrictions||None||A specific set of transfer object codes must be used.||Cannot be used to move salaries, wages or the associated employee benefits charges||Uses only revenue and expense object codes. No balance sheet codes are used.|
|KfS Path to Follow Click on the links to see the path to follow from the Main Menu in KfS||GEC e-doc||TF e-doc||DI e-doc||BA e-doc|
General Error Correction (GEC)
General Error Correction
The General Error Correction (GEC) e-doc is used to correct inappropriate or incorrect general ledger entries. The GEC e doc allows users to easily make corrections to documents previously submitted and approved.
Example: Supplies were charged to an incorrect account.
Use the From section to move the expense from the incorrect account.
Use the To section to charge expense to the correct account.
The correct expense is debited and the incorrect expense is credited.
Transfer of Funds (TF)
Transfer of Funds
The Transfer of Funds e-doc is used to move cash between accounts.
The Transfer of Funds (TF) document is used to transfer funds (cash) between accounts. The TF could be used to cover an overdraft, reimburse an account for an expense, or to fulfill a funding commitment.
There are two kinds of transfer transactions, mandatory and non-mandatory. Mandatory transfers are required to meet contractual agreements. Specific object codes are used to identify these transactions. An example of this type of transfer is moving dedicated student fees to the retirement of indebtedness fund group for principal and interest payments on bonds.
Non-mandatory transfers are allocations of unrestricted cash between fund groups, which are not required by any external agreements. These transfers are most commonly used throughout the university.
Distribution of Income and Expense (DI)
Distribution of Income and Expense
The Distribution of Income and Expense (DI) e-doc is used to distribute the income, expense, assets and liabilities from a holding account to one or more appropriate account(s).
Distribution is necessary when one account has incurred expenses or received income on behalf of one or more other accounts.
The DI can also be used to move income, expenses, assets and liabilities to other sub-accounts, object codes, or sub-object codes. Fiscal officers and support staff, department, and central administration staff are typical users of the DI documents.
Budget Adjustment (BA)
The Budget Adjustment (BA) document can be used to modify a base budget, a current budget or both.
It is a financial planning tool that allows an organization to adjust the current and base budget figures for a given account as circumstances may change throughout the fiscal year.
It may be used to create a budget for a new account established after the beginning of a new fiscal year.
Base budgets are established during the budget construction process, and designate an ongoing fiscal commitment that becomes the starting point for the budget process in the following year.
Current budgets reflect the allocation of resources for the current fiscal year.
A BA document is normally used to:
- reallocate current budget as necessary throughout the fiscal year,
- establish budget lines in new accounts created after the fiscal year begins, and
- make long-term adjustments to the base budget.
The BA document allows for the establishment of monthly budgeted amounts for users that wish to maintain budget information at this level.