SIMBA: Transfer Process

Table of Contents:

• INTRODUCTION
• JOURNAL ENTRY AND BUDGET TRANSACTIONS REQUIRED
• Journal Entry Between Units
• Budget Adjustment Between Units
• Budget Expense in Receiving Unit
• Support - GL Accounts/Commitment Items
• Upload Templates
• INTERDEPARTMENTAL TRANSFERS AND SALES GUIDELINES
• Internal Service Center Sales
• Transfer Expense
• Supporting a Deficit in a Service Center
• Unit Charging Another Unit
• CONTACT INFORMATION:

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INTRODUCTION

This Business Resource is intended for SIMBA end-users who need information on the budget transfer process and the transactions needed to transfer funding from either central or between other business areas.

This process allows for a P&L view of Sources less Uses, from both an Actual and Budget perspective. The transactions needed to transfer recurring and non-recurring funding from either central or between business areas. This document does not address the SAP Budget and Planning (SBP) Allocations because those allocations are already set up in a manner that is consistent with the below process. This process should be used throughout the Fiscal Year in Funds Management.

NOTE: beginning in FY24, controls have been added in SIMBA that will allow certain General Ledger (GL) accounts to only be used alongside other accounts from a predetermined set in any given journal entry/transaction. The GL accounts listed in the sections below are all such accounts. For a full listing of the GL sets and the specific accounts in each set, reference the General Ledger Validation sets - Internal Accounting Activity knowledge base article.

JOURNAL ENTRY AND BUDGET TRANSACTIONS REQUIRED

Three entries will be needed

1. Journal Entry Between Units
2. Budget Adjustment Between Units
3. Budget Expense in Receiving Unit

JOURNAL ENTRY BETWEEN UNITS

The sending or receiving Business Area will initiate a Journal Entry to transfer source funding to the receiving Business Area as an actual.

NOTES: If Central/Provost Support, the sending Business Area will initiate the Journal Entry

• Provost Central Support General Ledger (GL) Account 47003570, Other Support GL Account 47003500, or Other 470035xxxx GL Accounts (see Procurement Search Tool for complete listing of GLs)
• Upload supporting approval documentation to the journal entry. The approval should provide detail information on how the source of funds is to be expensed. See the SIMBA: Attach a Document to a Budget Posting for complete instructions.
• If providing non-recurring funding the following GL Accounts must be used:
• Sending Business Area - expense GL (55xxxxxx) (see the Procurement Search Tool for complete listing)
• Receiving Business Area - revenue GL (470035xx) (see the Procurement Search Tool for complete listing)
• If providing recurring funding the revenue GL (470035xx) will need to be used for both sending and receiving Business Areas see the Procurement Search Tool for complete listing)

EXAMPLE

RESULTS:

Non-Recurring - The Receiving Business Area receives a credit to revenue for Provost Central Support funding and the Sending Business shows a debit to expense as Interdepartmental Transfer, via Journal Entry

Recurring - The Receiving Business Area receives a credit to revenue for Provost Central Support funding and the Sending Business Area will show a debit to revenue for Provost Central Support, via Journal Entry.

BUDGET ADJUSTMENT BETWEEN UNITS

NON-RECURRING:

If the Budget was not entered during the Budget Planning Process - the sending or receiving Business Area will initiate a non-recurring Budget Adjustment (via the Budget Workbench or FM Budget Upload tool) to provide non-recurring funding between Business Areas.

EXAMPLE

* - NOTE: Budget can be in a Funds Center or Funded Program. Whichever is used, the other field will be blank.

RESULTS FROM NON-RECURRING BUDGET ADJUSTMENT:

The Receiving Business Area receives the Budgeted Provost Central Support as a revenue (source funding) and the Sending Business Area shows the budgeted Interdepartmental Transfer as an expense (use funding), via Budget Adjustment. This allows the budgeted income and actual income to be comparable.

RECURRING:

The sending or receiving Business will initiate a recurring source Budget Adjustment (via the Budget Workbench for FM Budget Upload tool) to provide recurring source funding between Business Areas.

EXAMPLE

* - NOTE: Budget can be in a Funds Center or Funded Program. Whichever is used, the other field will be blank.

RESULTS FROM RECURRING BUDGET ADJUSTMENT:

The Receiving Business Area receives the Budgeted Provost Central Support revenue (source funding) and the Sending Business Area will show a Budgeted decrease to Provost Central Support revenue (source funding), via Budget Adjustment. This will decrease the sending Business Area's recurring source funding, the Receiving Business Area now has the recurring budget.

BUDGET EXPENSE IN RECEIVING UNIT

If Uses (Planned Expense) was not budgeted in SAP Budget and Planning (SBP), the receiving Business Area will need to budget the offsetting Uses (Planned Expense). This will be a one-sided Budget Expense Adjustment.

NOTE: This is the entry for Budgeted Expense that gives the receiving unit spending authority when Availability Control (AVC) is turned on.

EXAMPLE

RESULTS:

Non-Recurring and Recurring - The Receiving Business Area will need to initiate a one-side budget adjustment to budget the Offsetting Planned Expense, if the expense was not already planned in SBP. This allows the budgeted expense to be created for AVC spending. As actuals come in, the budgeted expense and actual expense will be comparable.

Support - GL Accounts/Commitment Items

The GL Accounts/Commitment Items below will be used for informational/reporting purposes only. These GL Accounts will be excluded from the Financial Statements to avoid duplication of inter company transactions. The actual revenue will remain in the Business Area where the revenue will be report (i.e., General Funds tuition, fees, and state appropriation will remain in the Controller - University Wide Business Area).

UPLOAD TEMPLATES

Please refer to the Budget Upload Allocations Excel file and the Journal Entry Upload Allocations Excel file for examples.

INTERDEPARTMENTAL TRANSFERS AND SALES GUIDELINES:

Internal Service Center Sales

If sale from an Internal Service Center (114xxxxxxx, 115xxxxxxx, or 116xxxxxxx) Funds

• Use 47001000 for revenue
• Use 5261xxxx for expense
• Use 47001100 (not an internal, locked down account) for external charges

Transfer Expense:

If moving actual charge, use the same GL account from the original posting.

Supporting a Deficit in a Service Center:

If supporting a deficit in a Service Center from General Funs or moving fund

• Service Center Subsidy 52639000
• Service Center itself Support From associated Unit 47003510
• These pairs need to be used in conjunction with each other

Unit Charging Another Unit

If a unit is charging another unit

• Use Z6, Inter-department Charge, Document type and the respective GL's that correspond to the actual activity

CONTACT INFORMATION:

For questions, additional information, or to request changes to this document, please contact either the Budget Office or Financial Reporting.