This topic describes how funds are handled when various GL transactions are made.
When the Generate Closing Entries command is selected, all of the temporary accounts for the selected accounting cycle are zeroed out. Temporary accounts are those with an account code which has a Controlling Element value defined as account type Expenditure, Revenue, Other Fund Uses, or Other Fund Sources in Element Value Maintenance for the structure associated with the accounting cycle.
For each temporary account that does not have a zero balance, one transaction line is created to zero the account. The difference between the credits and debits of all the temporary accounts for a fund is entered as one transaction line for the account code defined as the Closing Fund Balance balancing account type for the fund. Thus, in the closing transaction, a fund's Closing Fund Balance account shows the amount and direction of change in financial resources for the fund for that cycle.
When the Generate Opening Entries command is selected, transactions are created to copy the closing balance for each of the non-zero balance permanent accounts in the prior cycle to the new cycle. Balances in the prior cycle are not affected. Permanent accounts are those with an account code which has a Controlling Element value defined as account type Asset, Liability, or Fund Balance in Element Value Maintenance for the structure associated with the accounting cycle.
When a budget is adopted, budget amounts are entered as transactions in the general ledger. When the budget is adjusted or revised, the general ledger is adjusted.
When a job is approved for an employee, funds are encumbered for the employee's salary. If a job is closed, any remaining encumbrances are unencumbered.
When a New order receipt is received, encumbrances are relieved, the expenditure is recorded, and a liability is created.
When a Pending order receipt is received, no transactions are recorded because they have already been created in Vendor Invoice.
If an order receipt is voided, the liability and expenditure are removed and the encumbrance is re-applied.
When warrants are printed and verified, cash is expended, the liability is cleared, and Due To / Due From transactions are written if applicable.
Payroll uses the Accrual or Cash Basis expenditure recognition for an accounting cycle as set in Payroll Configuration.
When an employee is submitted to receive payments, funds for the employer's portion of deductions are encumbered.
When the employee is included on an approved payroll register, the employee salary encumbrance for that payroll period is released, the salary expenditure is recognized, and the salary liability is realized. In addition, the employer encumbrance for any deductions during that payroll is released, the employer deduction expenditure is recognized, and the employer deduction liability is realized.
Once the employee's paycheck is printed and verified, the salary liability is covered with cash.
When payroll vendor checks are printed and verified, the employee and employer deduction liabilities are covered with cash.
All payroll expenditure encumbrances are recorded as debits in the transaction. The encumbrance account code is determined by the controlling element designated as the Reserve for Encumbrance balancing account type in the Element Value Maintenance screen. For example, if account code 100-EXPN-1200-113 was entered for a certified salary for an administrator, that account would be debited. The system would find the Encumbrance balancing account element value for fund 100 (ENCR), then credit account 100-ENCR-0000-000 (notice that all other element values are default). For more information about balancing account set-up, see the Adding Balancing Account Element Values or Adding Required Balancing Accounts topics in AptaHelp or refer to the AptaFund Financial Modules User Guide.
When a purchase order is issued, funds are encumbered and the original reservation is released. If a purchase order’s quantities or unit prices are changed, adjustments are made as needed. When a purchase order is closed, any remaining encumbrances are unencumbered.
When a purchase requisition is submitted, funds are reserved. Although reservations are not visible in the General Ledger window, they do come into play when the purchase order is issued and encumbrances are created. When budget checks are performed during the purchase requisition submit operation, the system checks what has been spent, what has been encumbered, and what has been reserved on other purchase requisitions to determine if there are available funds in the selected account codes to make a new reservation. If a purchase requisition is rejected, reserved funds are released.
When a regular vendor invoice is submitted for a blanket or regular purchase order, adjustments to the expenditure and liability are made if there is a difference between the purchase order and the invoice.
When a Pending vendor invoice for a blanket or regular purchase order is submitted for payment before items have been received, the liability/cash transaction is created and the items are also expended even though they have not been received.
When a regular vendor invoice is submitted for a dollar purchase order, the expenditure is recorded, and a liability is created since goods and services do not go through the order receipt process for this type of purchase order.
When an employee reimbursement or a direct payment vendor invoice is submitted, the expenditure is recorded and the liability is created.
When a vendor invoice of any type is cancelled, reverse transactions are created.
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