General Ledger (GL)

Module closes at 5pm on Tuesday 1 September

 

ON THIS PAGE
Summary of tasks Key dates CUEF sales/purchases Process and reconcile petty cash Credit card expenditure Budget Freeze Monies on deposit Accruals Unearned revenue Other debtors	Prepayments Accruals/deferrals and internal partners Accruals/deferrals and Group Companies Matching the source of funds for related expenditure and income Clearing deficits VAT Transactions Roll forward Trust funds

 

Essential Tasks	Final date for completion	✓
CUEF units: last instructions to be received by Treasury & Investment Team for 2019/20	Wed 17 Jun
Process and reconcile petty cash for 2019/20	Wed 5 Aug
Process credit card expenditure before AP closes if using this option	Mon 17 Aug
Movement of monies on deposit	Thu 20 Aug
Clear Trust Fund deficits	Wed 26 Aug
Process any remaining credit card expenditure by journal	Tue 1 Sep
Complete spreadsheets for income and expense accruals	Tue1 Sep
Code expenditure to same SoF as related income and clear deficits	Tue1 Sep
Submit year-end certificate(s) to Finance Division	Fri 25 Sep

 

Finance Division key dates for information	Key Date
2020 CUEF revaluation and Purchase/sales processed on CUFS	Fri 31 Jul
CUEF distribution and interest posted	Fri 21 Aug
CUEF valuation journal posted and departments notified	Tue 1 Sep
Carbon Reduction Charge (CRC) journal posted	Wed 19 Aug
EC PI Time adjustment posted	Wed 19 Aug
Indirect Cost Contribution posted	Mon 3 Aug Wed 2 Sep
Trust Fund overheads posted	Wed 5 Aug Wed 19 Aug Wed 2 Sep
Final journal for Jul-20 Adjustments	Thu 27 Aug
Issue Trust Fund statements to departments	Mon 10 Aug Mon 24 Aug Mon 7 Sep
Chest Allocation	Weekly postings from 3 Aug
Budget field frozen	Wed 26 Aug
Department summary reports, plus distribution of Year End Certificates on 10 Sep	Tue 4 Aug Mon 24 Aug Thu 3 Sep Thu 10 Sep

 

In case of queries please contact the General Ledger Helpdesk Tel. 39660

 

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Cambridge University Endowment Fund (CUEF) sales/purchases 

There are no purchases / sales of CUEF units at 31 July. The last day for dealing for 2019/20 is 17 June. Contact Treasury if there are any queries.

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Process and reconcile petty cash

• The department’s petty cash needs to be closed as at 31 July. The GL journal (and Grants journal if necessary) must have a July 2020 date.
• Petty cash expenditure for August 2020 must be journaled into August 2020.
• The department’s petty cash control account balance should reflect the amount of cash held as at 31 July.

NB. It may be that your first visit to the University Cashier after the year end includes two petty cash forms, one for each year. This is expected and acceptable. 

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Credit card expenditure

Monthly Barclaycard statements will be available to departments from 3 August.

See Barclaycard instructions in the Accounts Payable section and ensure any remaining transactions are cleared via GL journals before the module closes on 1 September. Ensure expenditure date is 31 July 2020.

Balances not cleared before the GL close will roll forward to AZZY as part of the normal year end process

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Budget Freeze

Chest allocation is processed through Departments accounts as actual income. Departments are able to move Chest Allocation by using a budget journal and liaising with your School Finance Advisor.

Central and Research Accounting will update the actual income in CUFS on the following days:

Actual Posting of July Chest Allocation	Fri 3 Jul
2nd Posting of July Chest Allocation	Mon 3 Aug
3rd Posting of July Chest Allocation	Mon 10 Aug
4th Posting of July Chest Allocation	Mon 17 Aug
5th Posting of July Chest Allocation	Mon 24 Aug
Budget field frozen in CUFS	Wed 26 Aug
Final posting of July Chest Allocation	Thu 27 August

If a department requires posting of budget journal after the 26 August, please contact your Finance Manager or Advisor who can liaise with central Financial Planning and Analysis

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Monies on deposit

20 August is the last date for placing eligible funds on deposit as at 31 July.

• Departments are reminded that monies should be taken off deposit to reduce account deficits.
• Deposit account and CUEF interest will be posted on 21 August.
• Details on eligible SoF, how to place money on or take money off deposit are available in Investments (Chapter 12, Financial Procedures Manual).

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Accruals

These are amounts owed by the department for goods and services that they have received prior to 31 July. Therefore, their costs need to be included in the 2019/20 financial year. This is done by the process of accruals.

Expenditure accruals occur where:

• Goods/services have been received on or before 31 July but no invoice has been received and therefore not processed on UFS; or
• Goods/services have been received on or before 31 July and the invoice has been received after AP module has closed and therefore the invoice will be processed in AP in 2020/21 financial year.

In case of queries please contact the General Ledger Helpdesk, details above.

Accruals must be raised for transactions over £10,000

Instructions

Guidance on creating journals for accruals is detailed in Appendix A

• By using the Auto Reversal journal category these journals should be automatically reversed into the AUG-20 period. Ensure that you post/release the July journal.
• If the journal category Accrual is used then you must remember to manually reverse it in the AUG-20 period using the More Actions button and to post/release both journals.

Sometimes journals need to be reversed in a period later than August. For example, if expenditure has been accrued in July but the invoice is not received until September then the Jul-20 journal should be Accrual type and should be manually reversed in September

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Unearned revenue

Income should be deferred where it has been received by the department in advance of the goods or services being supplied (e.g. trading, course fees). If income received in advance is not deferred, it will be credited and shown in the incorrect financial year.

Appendix B provides guidance on processing unearned revenue or, in case of queries, please contact the General Ledger Helpdesk

Other debtors

These are amounts owing to the department for services/goods provided but unbilled at the year end. They are the opposite of the accruals described previously. They will arise from goods or services provided to external customers but not yet invoiced on the AR module.

Appendix C provides guidance on processing accrued income or, in case of queries, please contact the General Ledger Helpdesk

• Accrued Income must be raised for single transactions over £10,000.
• Where accrued income for a single Department totals over £200,000, send supporting details to Central and Research Accounting by 23 August.
• Detailed supporting working papers must be retained for audit inspection.

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Prepayments

A prepayment occurs when a payment has been processed on UFS in advance of the goods or services being received. When this occurs over the year end, the proportion of the payment that relates to goods or services received in the new financial year (August 2020 and beyond) has to be calculated. The expenditure for 2019/20 is then reduced by this prepaid amount.

Appendix D provides guidance on processing accrued income or, in case of queries, please contact the General Ledger Helpdesk.

• Prepayments are only necessary for single transactions over £10,000.
• Where prepayments for a single Department total over £200,000, send supporting details to Central and Research Accounting by 23 August.
• Detailed supporting working papers must be retained for audit inspection

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Accruals/deferrals and internal partners

If the expenditure or income that is being accrued or deferred relates to a transaction with another department (e.g. internal trading) please check with the General Ledger Helpdesk before posting the journal. The Helpdesk will be able to check that the other department is making the equal and opposite accrual/deferral. This is important to ensure that the elimination of internal transactions is correct.

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Accruals/deferrals and Group Companies

If the expenditure or income that is being accrued or deferred relates to a transaction with a company listed in Appendix E, please check with the General Ledger Helpdesk before posting the journal. This is to ensure that the transaction can be picked up as part of the Group Consolidation process.

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Matching the source of funds for related expenditure and income

Recording expenditure against the same source of funds as the related income is an important process for departments.

To achieve the transfer between sources of funds the net balance of each type of expenditure is moved /transferred by a GL journal, using the original expenditure transaction code for both the debit and credit entries of the journal.

Example:

• Initially all your photocopying paper expenditure (transaction coe ESFZ) was coded against source of funds AAAA
• However, the department used £100 worth of paper when it was running off posters for an exhibition.
• The exhibition is a trading activity with income on source of funds GAAA
• Therefore, a journal should be raised to match the paper costs with the ehibition as follows:

CREDIT        U. Dept. CC. AAAA. ESFZ          £100
DEBIT           U. Dept. CC. GAAA. ESFZ         £100

This procedure should NOT be used to correct miscoding and applies to movement of expenditure between sources of funds and cost centres only.

If you require clarification please contact your Finance Adviser Detailed supporting working papers must be retained for audit inspection.

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Clearing deficits

Before clearing deficits, departmental accounts must be reviewed and adjustments made to:

• correct miscoding
• match the source of funds coding for related expenditure and income (as above)
• account for accruals, prepayments, other debtors and income accruals (as above)
• remove monies from deposit.

Deficits may then be off-set against surpluses on non-restricted and trading sources of funds by journaling expenditure using the transfer transaction code EZXX.

Care should be taken with this process and the transaction code EZXX must be used on both sides of the journal.Further information and guidance on their use is available from:

• Your Finance Adviser
• Best Practice Guide –Transfer Codes
• Online course - Transfer Codes

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VAT Transactions

The central VAT team posts Services Tax (reverse charge), Acquisition Tax and sales correction transactions on a monthly basis.

Services Tax	The amount of VAT you would have paid on that service if you had bought it in the UK
Acquisition Tax charge	The amount of VAT you would have paid on the goods had you bought them in the UK (EU purchases only)
Sales Tax Adjustments	Occurs when a sale has been incorrectly entered with the wrong tax code

In a normal month, any tax adjustments for these items would take place in the month following the original AP or AR entry. However, for the year end, all the July AP services/acquisition tax adjustments are posted in the same month.

As the VAT team are not able to work on the July tax adjustments until AP and AR have closed (17 August), all postings to department accounts in respect of these adjustments will be posted by no later than the end of 27 August. The GL closes to departments on 1 September.

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Roll forward

In accordance with University policy, year-end income and expenditure totals, by SoF and cost centre, will be rolled forward to create the standard brought-forward balances for 2020/21 by the close of business on 7 September. Any department with specific roll forward requests should submit these to their Finance Manager for input in UFS by no later than midday on 9 September.

As part of the preparation of the final accounts, adjustments may be necessary. This means that the balances rolled forward may change. Any such adjustments will be communicated to departments

Two adjustment periods have been set up on GL for this purpose ADJ1-20 and ADJ2-20. Under certain circumstances, postings into ADJ1-20 are allowed provided prior approval from the Financial Reporting section has been obtained. All year-end postings should be entered into Jul-20, and Jul-20 should be used for all year-end reporting

 

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Trust funds

Individual statements for all trust funds will be sent to departments as follows.

Date	Statement
Wed 8 Jul	30 June statement
Mon 10 Aug	1st interim statement as at 31 July (will exclude Jul-20 distribution)
Mon 24 Aug	2nd interim statement as at 31 July (will include Jul-20 distribution)
Mon 7 Sep	Final statement as at 31 July

Journals are to be processed centrally to transfer expenditure to Trust Funds relating to appropriations in aid and overhead charges. It is planned that all such journals will be included on the 1st interim statement. Clear any Trust Funds deficits based on a review of 2nd interim statements by 26 August.

Clear any trust funds deficits based on a review of 2^nd interim statements by 23 August.