Banner FIS Ledgers

Ledgers in Banner FIS are "sets of books" against which financial transactions are posted. Each of the four ledgers provides different information for control and reporting. They are as follows:

Operating Ledger

The set of books against which expense, salary, revenue and transfer details are recorded for all FUNDs. The Operating Ledger is the basis for the University's annual Statement of Revenue and Expenses (also called Profit and Loss), and is closed out to the General Ledger each April 30th (the fiscal year-end).

General Ledger

The set of books against which assets, liabilities and fund balances are recorded for all FUNDs. The General Ledger is the basis for the University's annual Balance Sheet. It is always in balance since it contains "control" or summarized revenue, expenditure, and transfer information.

Encumbrance Ledger

The set of books against which details for all original, adjusted or liquidated encumbered and reserved amounts are recorded for all FUNDs. In other words, the Encumbrance Ledger contains all the University's commitments.

Grant Ledger

The set of books against which expense, salary, revenue and transfer details are recorded for FUNDs linked to a Grant. Unlike the Operating Ledger, the Grants Ledger contains cumulative details to support inception-to-date reporting spanning multiple years, as well as reporting on a fiscal year end different from April 30th.

Structure of Operating Ledger

The details contained in the Operating Ledger will be of most interest to financial administrators since it contains all revenue, salary, expenditures, and transfer transactions. It is important to understand the structure of the transaction postings in order to properly interpret on-line queries and reports.

Operating Ledger COLUMNs


The columns or "buckets" within the Operating Ledger contain information about dollars. Summary queries usually display each column separately. Transaction detail queries, however, often have a single column of dollars along with a "Fld" (or Field) column to indicate which bucket the dollars are reflected in. The possible columns are as follows:
Fld CODE TRANSLATION DEFINITION

OBD

Original Budget

Adopted budget allocated at the beginning of the year (both permanent and temporary)

ABD

Budget Adjustment

Any mid-year changes to the Original Budget (both permanent and temporary)

ACB

Accounted Budget

Total budget, including original and budget adjustments. Sometimes referred to as "Adjusted Budget"

TMP

Temporary Budget

The subset of total budget that is temporary (rather than permanent) in nature.

YTD

Year to Date Activity

Represents actual revenues, expenditures (including salaries), and transfers

ENC

Encumbrance

A firm obligation for future payment, generated by Purchase Orders for example. Included in the "Total Commitments"

RSV

Reservations

Budget reservations, i.e. the setting aside of budgets. Generated by Purchase Requisitions. Included in "Total Commitments"

 

Available Balance

The sum of:
+/- Adjusted Budgets
+/- YTD Activity
+/- Commitments

Operating Ledger ROWs


The underlying records for most queries are financial transactions. Think of each transaction as a row in the Operating Ledger that contains various codes to help determine its characteristics, audit trail and impact on reporting. The following are the most commonly used fields and codes:
FIELD DEFINITION COMMON CODES

FOAPAL string

The accounting distribution (fund, org, account, program, activity, location) to which the transaction is posted

 

Date

Posting date once the document is completed and fully approved.

Format: dd-mmm-yyyy
Example: 05-APR-2011

The date determines which of the fiscal periods in the year that the document is posted to (codes 01 to 12 representing May to April, plus accrual period 14). For example a date of 05-apr-2011 would have been posted in fiscal year 11, period 12.

Document

A unique number sequentially assigned to every document in process (documents need not be completed, approved or posted). Acts as an audit number.

Example: R0000545, where R represents a Requisition document type and 0000545 is the sequential and unique number assigned.

The document number's first letter represents the following:
R = purchase requisition (req)
P = purchase order (po)
I = invoice (inv)
H = deposit (dcr)
J = journal (jv)
A = cheque (chk)
F = feed / batch files from subsidiary systems

Type

The associated rule class to further breakdown the document type. For example, journal J0000242 can be a budget, journal or IDC transaction. Also referred to as "JType" and "Rule Code".

Sample document types :
BD03= temporary original budget
BD04= temporary budget adjustment
CORD= establish change order
DCSR= direct cash receipt
IDC= interdepartmental charge
INEI= invoice w/ encumbrance
INNI= invoice w/o encumbrance
JE15= journal entry (intra-fund)
JE16= journal entry (inter-fund)
MBPA= permanent budget adjustment
MBPO= permanent original budget
POLQ= purchase request liquidation
PORD= establish purchase order
POTX= tax on purchase order
RBTR= return tax on cash receipt
RCQP= cancel requisition
REBT= tax rebate
REQA= additional charge on req
REQD= discount on requisition
REQP= requisition reservation
TAXI= sales tax on invoice

Description

35-character particulars of the transaction. Depends on document type: for example, vendor name for invoices, requestor name for requisitions.

 

Fld

Field indicates the "column" or "bucket" in which the dollars are associated. See section operating ledger columns for details.

OBD= Original Budget
ABD= Budget Adjustments
ACB= Accounted Budget
YTD= Year-to-date Actuals
ENC= Encumbrances
RSV= Reservations

Amount

Amount

The nominal dollar value

D/C

Debit/Credit indicator

"+" = The dollars in a given ACCOUNT are increased

"-" = The dollars in a given ACCOUNT are decreased

Structure of General Ledger

The details contained in the General Ledger (G/L) will be of interest to financial administrators involved in balance sheet issues, as it contains all assets, liabilities and fund balance transactions. For example, a unit performing its own billing of clients may require an analysis of the accounts receivable of their fund. It is important for these users to understand the structure of the transaction postings in order to properly interpret on-line queries and reports.

General Ledger COLUMNs

Fld CODE TRANSLATION DEFINITION

DR

Debit

Associated to the Amount. A debit amount to a G/L account which normally has a debit balance is an increase in dollars. A debit to a G/L account which normally has a credit balance is a decrease in dollars.

CR

Credit

Associated to the Amount. A credit amount to a G/L account which normally has a debit balance is a decrease in dollars. A credit to a G/L account which normally has a credit balance is an increase in dollars.

[calculated]

Beginning Balance

From a fiscal year perspective, this balance is derived from the ending balance of the prior fiscal year, and is recorded in the current fiscal year as period 00. From a fiscal period perspective, this balance is derived from the cumulative debits minus credits from period 00 through to the period preceding the current period.

[calculated]

Current/Ending Balance

From a fiscal year perspective, this balance is derived from the ending balance of the prior fiscal year, and is recorded in the current fiscal year as period 00. From a fiscal period perspective, this balance is derived from the cumulative debits minus credits from period 00 through to the period preceding the current period.

[calculated]

Balance Variance

Derived from Ending Balance minus Beginning Balance.

General Ledger ROWs

 

The underlying records for most queries are financial transactions. Think of each transaction as a row in the General Ledger that contains various codes to help determine its characteristics, audit trail and impact on reporting. The following are the most commonly used fields and codes:

FIELD DEFINITION COMMON CODES

Fund & Account

The fund code and account code to which the transaction is posted. (Note: the other FOAPAL elements, namely organization, program, activity and location, are not carried on the General Ledger).

 

Date

Posting date once the document is completed and fully approved.

Format: dd-mmm-yyyy

Example: 05-APR-2011

The date determines which of the fiscal periods in the year that the document is posted to (codes 01 to 12 representing May to April, plus accrual period 14). For example a date of 05-apr-2011 would have been posted in fiscal year 11, period 12.

Document

A unique number sequentially assigned to every document in process (documents need not be completed, approved or posted). Acts as an audit number.

Example: R0000545, where R represents a Requisition document type and 0000545 is the sequential and unique number assigned.

The document number's first letter represents the following:

R = purchase requisition (req)
P = purchase order (po)
I = invoice (inv)
H = deposit (dcr)
J = journal (jv)
A = cheque (chk)
F = feed / batch files from subsidiary systems

Type

The associated rule class to further breakdown the document type. For example, journal J0000242 can be a budget, journal or IDC transaction. Also referred to as "JType" and "Rule Code".

Sample document types:

BD03= temporary original budget
BD04= temporary budget adjustment
CORD= establish change order
DCSR= direct cash receipt
IDC= interdepartmental charge
INEI= invoice w/ encumbrance
INNI= invoice w/o encumbrance
JE15= journal entry (intra-fund)
JE16= journal entry (inter-fund)
MBPA= permanent budget adjustment
MBPO= permanent original budget
POLQ= purchase request liquidation
PORD= establish purchase order
POTX= tax on purchase order
RBTR= return tax on cash receipt
RCQP= cancel requisition
REBT= tax rebate
REQA= additional charge on req
REQD= discount on requisition
REQP= requisition reservation
TAXI= sales tax on invoice

Description

35-character particulars of the transaction. Depends on document type: for example, vendor name for invoices, requestor name for requisitions.

 

Fld

Field indicates the "column" or "bucket" in which the dollars are associated. See section general ledger columns for details.

DR= Debit
CR= Credit

Amount

Amount

The nominal dollar value

D/C

Debit/Credit indicator

"+" = The dollars in a given ACCOUNT are increased
"-" = The dollars in a given ACCOUNT are decreased

 

Structure of Encumbrance Ledger

The details in the Encumbrance Ledger are useful when a financial administrator wants a list of outstanding commitments rather than sifting through the details of new and relieved commitments in the Operating Ledger, or when they want a breakdown of original, adjusted or liquidated amounts.

Encumbrance Ledger COLUMNs

Fld CODE TRANSLATION DEFINITION

RSV

Reservation

Budget reservation, i.e. the setting aside of budgets. Generated by purchase requisitions. Not as firm as an encumbrance.

ENC

Encumbrance

Commits unspent balances due to a firm obligation for future payment. Typically generated by purchase orders and appointment forms.

[calculated]

Commitments

The sum of reservations plus encumbrances.

ORG

Original

The initial amount of reservation or encumbrance.

ADJ

Adjustment

Any adjustments of the initial amount of reservation or encumbrance. For example, a change order would be an adjustment from the original purchase order.

LIQ

Liquidation

The liquidation (i.e. relieving) of an outstanding reservation or encumbrance.

Encumbrance Ledger ROWs

The underlying records for most queries are transactions involving commitments (reservations or encumbrances). Think of each transaction as a row in the Encumbrance Ledger that contains various codes to help determine its characteristics, audit trail and impact on reporting. The following are the most commonly used fields and codes:

FIELD DEFINITION COMMON CODES

FOAPAL string

The accounting distribution (fund, org, account, program, activity, location) to which the transaction is posted. The key elements for commitments are Fund and Org.

 

Date

The date a transaction is posted, i.e. established, adjusted or liquidated.

(Note: The Encumbrance Ledger does not reflect fiscal periods).

Format: dd-mmm-yyyy

Example: 05-APR-2011

Document

A unique number sequentially assigned to every document in process (documents need not be completed, approved or posted). Acts as an audit number.

Example: R0000545, where R represents a Requisition document type and 0000545 is the sequential and unique number assigned.

The document number's first letter represents the following:

R = purchase requisition (req)
P = purchase order (po)
I = invoice (inv)
J = journal (jv)

Type

The associated rule class to further breakdown the document type. For example, journal J0000242 can be a budget, journal or IDC transaction. Also referred to as "JType" and "Rule Code".

Sample document types :

CORD= establish change order
INEI= invoice w/ encumbrance
POLQ= purchase request liquidation
PORD= establish purchase order
POTX= tax on purchase order
RCQP= cancel requisition
REQA= additional charge on req
REQD= discount on requisition
REQP= requisition reservation

Description

35-character particulars of the transaction. Depends on document type: for example, vendor name for invoices, requestor name for requisitions.

 

Fld

Field indicates the "column" or "bucket" in which the dollars are associated, as well as the nature of the increase or decrease. See section encumbrance ledger columns for details.

ENC= Encumbrances
RSV= Reservations
ORG = Original
ADJ = Adjustment
LIQ = Liquidation

Amount

Amount

The nominal dollar value

Action Ind

Action Indicator identifies the liquidation action on the commitment.

P = Partial
T = Total

Status Ind

Status Indicator identifies the current status of an encumbrance.

O = Open
C = Closed

Type Ind

Type Indicator identifies the source of the encumbrance.

R = Purchase Requisition
P = Purchase Order
E = Encumbrance (e.g. salaries)

Commit Ind

 

The commitment indicator concept is not used at McGill.

By default, value is "U".

 

Structure of Grants Ledger

In the case of Grant, the term "ledger" is somewhat a misnomer. It is not a unique 'set of books' but rather a copy of multiple years of the Operating Ledger. Therefore, please see Section 2 above to understand the structure of the transaction details. A grant ledger exists for a fund only if it is linked to a grant code on FTMFUND (Fund Code Maintenance Form)

Below highlights the differences between the Operating Ledger and Grant Ledger:

CONCEPT OPERATING LEDGER GRANT LEDGER

Fund Code

Mandatory query field

Mandatory query field

Grant Code

Not applicable

Mandatory query field

Year

University fiscal year: May 1st to April 30th.

For example, year 12 always represents May 1, 2011 to April 30, 2012.

The grant year. Determined for each grant by the start date.

For example, if a grant has a start date of 01-apr-2002, then year 02 represents April 1, 2003 to March 31, 2004.

Accumulation of results

Year-to-Date

Calculated from May 1st of current year.

Inception-to-Date

Calculated for the beginning of the grant, even if spanning multiple years.

Balance forward

Each May 1st, the Operating Ledger starts at zero, except (depending on the fund type) a budget carry forward representing the cumulative free balance or over-expenditure results from prior years.

Carry forward is a lump sum calculation posted to a single account 700421 "Previous Year Balance Forward'

This concept does not exist for Grants. Rather, the cumulative result since the fund's inception is always available.

Results are accumulated account by account.