WELCOME to the CMS Processing Auxiliary Organization Billing

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WELCOME to the CMSProcessing Auxiliary
Organization Billing

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CMS Processing SJSU Auxiliary Organization Billing

• Table of Contents
• Introduction 4
• Whats Really Changed? 5
• Auxiliary Organization Billing Prefixes 9
• Example 1 Release Time 13
• Old Procedures 13
• New Procedures 16
• Clarification (August 24, 2005) 20
• Visual of Example 1 25

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CMS Processing SJSU Auxiliary Organization Billing

• Table of Contents (contd)
• Example 2 Correcting a Purchase 28
• Old Procedures 28
• New Procedures 30
• Visual of Example 2 32

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CMS Processing SJSU Auxiliary Organization Billing

• Table of Contents (contd)
• Example 3 Splitting a Purchase 36
• Old Procedures 36
• New Procedures 39
• Visual of Example 3 42
• Descriptions/Comments 45
• Summary / Closing 46

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CMS Processing SJSU Auxiliary Organization Billing

• INTRODUCTION
• Now that San Jose State University is live with
  PeopleSoft AR/Billing Module for processing
  Account Receivables and Billing transactions,
  many people have been requesting information on
  how it impacts processing transactions with SJSU
  Foundation and other Auxiliary Organizations.
  Along with the new PS AR/Billing module, CMS has
  installed a CSU modification that enables the new
  module to automatically create invoices for
  reimbursable expenses at the end of each month.
• This presentation describes the universitys new
  procedures for handling billing San José States
  Auxiliary Organizations (SJSU Foundation,
  Associated Students, Student Union, and Spartan
  Shops) for reimbursable expenses.

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CMS Processing SJSU Auxiliary Organization Billing

• Whats Really Changed?
• Effective July 1, 2006, all transactions for
  Foundation and other Auxiliary Organizations must
  use the CSU Operating Fund, your department ID,
  and a PeopleSoft Project chartfield. For
  example, there is a PS Project chartfield setup
  with a prefix of F for Foundation projects
  grants that need to be run in our PS system. The
  new procedure will automatically invoice
  Foundation for reimbursement.

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CMS Processing SJSU Auxiliary Organization Billing

• Whats Really Changed for You?
• For an invoice to be automatically created, the
  expenses must be charged to the correct
  chartfields
• FUND The CSU Operating Fund 70000 (The same
  fund will be used to record the reimbursement
  back from the Auxiliary Organization).

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CMS Processing SJSU Auxiliary Organization Billing

• Whats Really Changed?
• DEPTID Utilize your own DeptID in all
  transactions you do not need to use the old
  foundation deptID.

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CMS Processing SJSU Auxiliary Organization Billing

• Whats Really Changed?
• PROJECT A Project chartfield beginning with an
  alphabetic prefix corresponding to the Auxiliary
  Organization being billed. For the Foundation,
  the project will correspond to a Foundation
  account number. For the other auxiliary
  organizations, the project will correspond to a
  division or department within the organization.

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CMS Processing SJSU Auxiliary Organization Billing

• AUXILIARY ORGANIZATION PREFIXES

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CMS Processing SJSU Auxiliary Organization Billing

• Departments no longer need to request Accounting
  to create an invoice to an auxiliary
  organization. However, in the case of the SJSU
  Foundation, the Principal Investigators are
  REQUIRED to approve each invoice.

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CMS Processing SJSU Auxiliary Organization Billing

• In order for project costs to be recorded
  correctly, we now require a project to be entered
  whenever an expense is charged to fund 70000. If
  an invoice will not be created by the system,
  there is no need to enter anything in the project
  field.

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CMS Processing SJSU Auxiliary Organization Billing

• Invoices for faculty release time reimbursement
  will not be created by the system, because
  salaries for faculty on the all-year plan can
  fall after the deadline for charging the grant.
  Therefore, the university will continue to create
  these invoices manually once a semester. The
  amounts will be credited to the faculty members
  department. Because benefits will be estimated,
  the reimbursement could vary somewhat from the
  actual cost. Any variance will be swept to the
  central university pool at the end of the year.

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CMS Processing SJSU Auxiliary Organization Billing

• Example 1 Release Time (Faculty Appointments)
• Old Procedure
• An academic department submits an Employee
  Profile with foundation documentation to Faculty
  Affairs.
• The Office of Faculty Affairs approves the
  appointment and forwards it to the Foundation.

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CMS Processing SJSU Auxiliary Organization Billing

• Old Procedure (cont)
• The part of the employees salary to be
  reimbursed by the research grant is charged to
  fund 101xx and deptID 1308 (Foundation).
• Based upon a billing worksheet from the
  foundation, the university bills the Foundation
  for actual salary and estimated benefits. The
  reimbursement is credited to fund 102xx and
  deptID 1308.

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CMS Processing SJSU Auxiliary Organization Billing

• Old Procedure (cont)
• The Foundation sends its billing worksheet to the
  Principal Investigator for approval with a
  matching Foundation requisition. Upon receipt of
  the signed requisition, Foundation will process
  the invoice.

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CMS Processing SJSU Auxiliary Organization Billing

• Example 1 Release Time (Faculty Appointments)
• NEW Procedure
• Same You still to an Employee Profile with
  Foundation documentation to Faculty Affairs, BUT
  with the correct Fund (70000), Project, and
  concise description.
• Same - The Office of Faculty Affairs approves the
  appointment and forwards it to the Foundation.

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CMS Processing SJSU Auxiliary Organization Billing

• NEW Procedure (cont)
• The part of the employees salary to be
  reimbursed by the research grant is charged to
  fund 70000, the academic departments deptID, and
  a project 99999.

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CMS Processing SJSU Auxiliary Organization Billing

• NEW Procedure (cont)
• Based upon a billing worksheet from the
  Foundation, the university will manually invoice
  the Foundation for actual salary and estimated
  benefits. The reimbursement is credited to fund
  70000, the academic departments deptID, and
  project 99999, and will offset the expense in
  70000.

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CMS Processing SJSU Auxiliary Organization Billing

• NEW Procedure (cont)
• The Foundation sends its billing worksheet to the
  Principal Investigator for approval with a
  matching Foundation requisition. Upon receipt of
  the signed requisition, Foundation will process
  the invoice.

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CMS Processing SJSU Auxiliary Organization Billing

• Clarification (August 18, 2005) The Foundation
  Release Time Authorization form is still
  required. Faculty Affairs will not process the
  Employee Profile without the Foundation Release
  Time Authorization (except for grants in process,
  and even then Faculty Affairs must receive the
  Release Time Authorization when the grant is
  awarded - see scenario 2 below).
• Before preparing the Employee Profile, the
  department should contact the foundation
  regarding the grant that will fund the release
  time.

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CMS Processing SJSU Auxiliary Organization Billing
There are three possible scenarios at that point
1. Grant has been awarded. (This is the most
common scenario.) The foundation has received
official confirmation that the grant has been
awarded. The foundation issues the Release
Time Authorization to the department. The
department submits the Employee Profile with the
Release Time Authorization to Faculty Affairs.
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CMS Processing SJSU Auxiliary Organization Billing
2. Grant is in process. The foundation has not
received confirmation of the award. The
foundation analyst researches the status of the
grant, finds that the grant is being processed,
and notifies the department. The department may
now submit the Employee Profile without the
Release Time Authorization as noted above. The
department should note the status of the grant
in the Comments section of the Employee Profile.
When the award is received, the foundation will
issue the Release Time Authorization to the
department, which should forward it to Faculty
Affairs.
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CMS Processing SJSU Auxiliary Organization Billing
3. Grant has NOT been awarded. The foundation
has not received confirmation of the award. The
foundation analyst researches the status of the
grant, finds that no grant is being processed,
and notifies the department. The faculty member
is not eligible for release time, and the
department should not submit an Employee Profile.
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CMS Processing SJSU Auxiliary Organization Billing
For departments that have already submitted the
Employee Profile without the Release Time
Authorization, Faculty Affairs will contact the
foundation rather than delay the process. From
this point on, however, Faculty Affairs will
return to the department Employee Profiles
without the proper documentation. Please
contact your designated Foundation OSP Analyst
for the foundation Release Time Authorization.
If you have any questions about this process,
please contact Lan Duong, Associate Director in
the Office of Sponsored Programs at the
foundation (4-1426, lduong_at_foundation.sjsu.edu)
or me.
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CMS Processing SJSU Auxiliary Organization Billing

• Visual of Example 1
• The Employee Job Profile is where you place
  changes to an appointment. For Billing an
  Auxiliary Organization, you must Change the
  Current Funding.

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CMS Processing SJSU Auxiliary Organization Billing

• Visual of Example 1
• It needs to show YOUR Dept (deptID), fund 70000,
  and the Project 99999. and any other pertinent
  data, like Pct.

Proj
1095 70000 99999
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CMS Processing SJSU Auxiliary Organization Billing

• Visual of Example 1
• Also, use the Comments area to place a concise
  description of how this appointment relates to
  the project/grant.

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CMS Processing SJSU Auxiliary Organization Billing

• Example 2 Correcting a Purchase that should
  have used funding from an Auxiliary Organization
• Old Procedure
• A department charges a University fund, like
  General Fund, on a purchase requisition and then
  realizes that part of the expense needed to go to
  a foundation grant. At the time of purchase, it
  is not practical to split out the goods or
  services on the order.

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CMS Processing SJSU Auxiliary Organization Billing

• Old Procedure (cont)
• The department must now submit a requisition to
  Foundation.
• Based upon a request from the Foundation or the
  department, University Accounting would bill the
  foundation for the requisition amount and credit
  the department.
• The Foundation would then match the invoice to
  the requisition.

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CMS Processing SJSU Auxiliary Organization Billing

• Example 2 Correcting a Purchase that should
  have used funding from an Auxiliary Organization
• NEW Procedure
• Same scenario where the department realizes the
  incorrect charge.
• The department can now create a Web Expense
  Transfer (journal) on the Finance Web Component,
  charging fund 70000, its own deptID, and the
  project corresponding to the Foundation account.

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CMS Processing SJSU Auxiliary Organization Billing

• NEW Procedure (cont)
• Based upon the expense, the PeopleSoft AR/Billing
  system will automatically create an invoice to
  the Foundation and credit fund 70000 which
  offsets the expense in 70000.
• The Foundation will send the University invoice
  to the Principal Investigator, with a matching
  Foundation requisition. Upon receipt of the
  signed requisition, the Foundation will then
  process the invoice.

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CMS Processing SJSU Auxiliary Organization Billing

Visual of Example 2 To correct the funding on a
purchase, you can do a Web Expense Transfer
(journal) on the Finance Web Component.
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CMS Processing SJSU Auxiliary Organization Billing

Visual of Example 2 You can move the expense
FROM the incorrect Fund and charge it TO the
RA Fund and Project.
07/06/2005
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CMS Processing SJSU Auxiliary Organization Billing

Visual of Example 2 Remember, you must have fund
70000 and the Project charfield.
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CMS Processing SJSU Auxiliary Organization Billing
Visual of Example 2 Remember to use the
Description fields to identify how the transfer
relates to the project/grant. The Auxiliary
Organization will see the line description for
the RA Fund on the invoice.

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CMS Processing SJSU Auxiliary Organization Billing

• Example 3 Splitting a Purchase
• Old Procedure
• A department does a web requisition for a
  purchase that is to be paid partly by a
  university fund and partly by a Foundation grant.
  The department notes the Foundation account
  number in the header or line comments sections.
  
• The department submits a requisition form to the
  foundation.

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CMS Processing SJSU Auxiliary Organization Billing

• Old Procedure (cont)
• When the Purchasing department creates the
  purchase order, it charges fund 101xx and deptID
  1308 for the foundation portion and notifies
  University Accounting.
• When the PO voucher is paid out of fund 101xx,
  University Accounting manually invoices the
  Foundation for the voucher amount and credits
  102xx.

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CMS Processing SJSU Auxiliary Organization Billing

• Old Procedure (cont)
• The foundation matches the invoice to the
  Foundation requisition and pays the invoice.

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CMS Processing SJSU Auxiliary Organization Billing

• Example 3 Splitting a Purchase
• NEW Procedure
• A department submits web requisition for a
  purchase that is to be paid partly by a
  university fund and partly by a foundation grant.
  The department charges the foundation part to
  fund 70000, its own deptID, and the project
  corresponding to the foundation account number.
  It enters a concise description in the Line
  Comments.

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CMS Processing SJSU Auxiliary Organization Billing

• NEW Procedure (cont)
• When the PO voucher is paid out of correct
  chartfields (fund 70000 with the project), the
  PeopleSoft AR/Billing system creates an invoice
  to the foundation for the voucher amount and
  credits 70000.

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CMS Processing SJSU Auxiliary Organization Billing

• NEW Procedure (cont)
• The Foundation sends the University invoice to
  the principal investigator, with a matching
  foundation requisition. Upon receipt of the
  signed requisition, the foundation will pay the
  invoice.

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CMS Processing SJSU Auxiliary Organization Billing
Visual of Example 3 To split a purchase, you
need to click on the button to split
the line when you first create a web requisition.

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CMS Processing SJSU Auxiliary Organization Billing

• Visual of Example 3
• Fill in the header line information and be sure
  to enter in the correct chartfield information
  for fund 70000 and the Project (in this example,
  F2115023356).

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CMS Processing SJSU Auxiliary Organization Billing

• Visual of Example 3
• Remember to use the Description and Comment
  fields to identify how the transfer relates to
  the project/grant. The Auxiliary Organization
  will see the line description for the RA Fund on
  the invoice.

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CMS Processing SJSU Auxiliary Organization Billing

• Descriptions/Comments On all transactions
  involving billing the Auxiliary Organizations,
  you need to be VERY SPECIFIC in your
  descriptions/comments. Items to include are
• Principal Investigator
• Auxiliary Organization reference/account number
• How the transaction ties to the grant (i.e., If
  using project F2115023356 - NASA Faculty
  Fellowship, how does this transaction support the
  program?)

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CMS Processing SJSU Auxiliary Organization Billing

• Summary / Closing
• The various procedures for faculty appointments,
  expense transfers and web requisitions really
  havent changed that much.
• The main things to remember are the CSU Operating
  Fund 70000, Project and thorough, concise
  descriptions/comments.

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CMS Processing SJSU Auxiliary Organization Billing

• Summary / Closing
• The system will only automatically generate an
  invoice for expenses charged to fund 70000 and a
  project ChartField.
• Use the correct Project chartfield that has the
  appropriate prefix (F for Foundation, AS for
  Associated Students, SU for Student Union and SS
  for Spartan Shops).

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CMS Processing SJSU Auxiliary Organization Billing

• Summary / Closing
• Always remember to use the Description and
  Comment fields to detail who the Principal
  Investigator is, any associated Auxiliary
  Organization reference number/account, and how
  does the expense support the project/grant. Be
  as specific as you can.

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CMS Processing SJSU Auxiliary Organization Billing

• Remember If you have any questions about
  PeopleSoft, contact the CMS Help Desk
• (campus phone extension 4-1530 or e-mail
  cmshelp_at_sjsu.edu).
• Contact other appropriate offices for specific
  questions on processes and procedures.

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CMS Processing SJSU Auxiliary Organization Billing

• THANK YOU
• for attending the
• CMS Processing SJSU Auxiliary Organization
  Billing Presentation!!