FAMIS Financial Accounting Basics

1
FAMIS Financial Accounting Basics

• Jeff Burton
• 458-4284
• burton_at_tamu.edu
• Adapted from Texas AM University Financial
  Management Services training
• Amanda Vanek

2
Objectives

• Define basic financial accounting terms
• Locate and utilize screens for Account Dollar
  information
• Understand Types of Accounts SL/GL/SA
• Understand Types of Expense Codes Subcodes /
  Account Controls
• Understand Types of Transactions
• Understand Monthly Account Statements and
  Reconciliations 

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What is a FAMIS Account?
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Account164200 SRPH

• Six digit number
• Tracks financial activity
• Requested and maintained by department
• Established by Office of Finance Administration
  
• New Account Request Form http//hscconcord.tamu.
  edu/hscfa/gen_actg.html

5
Account Attributes

• Non- info about an account-Screen 6 8
• Account title
• Responsible Person
• Primary Department
• Mail Stop
• Comments

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Account Attributes Cont

• How to find an account using attributes
• Screen 29 Search by
• Account Number
• Title
• Department/Sub Department
• Responsible Person

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Types of Accounts

• General Ledgers (GL)
• Holds your Assets - What you own Cash, Accounts
  Receivable, Inventory
• Holds your Liabilities What you owe Accounts
  Payable
• Fund Balance What the account is worth
• Always 6 digits
• Always begins with 0 016420

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Types of Accounts Cont.

• Subsidiary Ledger (SL)
• Records day to day activity that is occurring
  like your check register if you have a checking
  account
• Expenditures pay for a purchase
• Revenues collect money for a service
• Budget Spending authority. Balance Available.

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Types of Accounts Cont.

• Subsidiary Ledger (SL) Accounts
• 6 digits
• Always begin with non-zero s
• 164200

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Types of Accounts Cont.

• Support Account (SA)
• Subdivision of SL to provide account tracking at
  a lower level. 5 digits.
• Optional
• Created maintained by department
• Menu M05
• Screen 68 to search
• Example 164200-54111

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Questions???
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How the SLs and GLs Work Together
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FAMIS is an Accounting System

• Records financial transactions
• Collect summarize data for management reports,
  state reports, grant reports, etc.

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How They Work

• FAMIS maps each SL to a GL for balancing
  purposes (screen 6 39)
• SL 164200 maps to GL 016420
• When SL account activity occurs, (ie 164200)
• FAMIS automatically creates a journal entry to
  change the appropriate portion of the GL to make
  the account balance (016420).

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Account Mapping

• Many Accounts have a 11 SL to GL relationship.
• 248XXX, 288XXX, 3XXXXX
• For these accounts, depts must reconcile the SL
  and the GL. To reconcile, review GL statement
  (you should be getting these!) to ensure all
  transactions listed were authorized by your
  department.
• These GLs allow you to see your true cash, are
  good management info, and are used extensively in
  year end reporting.
• See screen 39 024800 Account Balances Handout
  (pgs 9 12 in packet)

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Account Mapping Cont.

• Some accounts have numerous SLs that map to one
  GL
• All 1XXXXX, 242XXX, 25XXXX, 4XXXXX, 5XXXXX,
  6XXXXX
• Depts do not reconcile the GL on these. Finance
  Administration does. You should not be getting
  statements on these GLs.
• See screen 39 starting with account 012000
• See HSC Account Summary handout (pgs 6-8 in
  packet)

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Who is Responsible for Reconciling Accounts?
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SL Accounts

• Depts always balance the SL statement
• Revenue
• Budget Est Revenue Actual Revenue Collected
  Revenue to be collected
• Revenue to be collected is expressed as a
  negative number unless you collected more revenue
  than estimated (ex Screen 19 - 288000)
• Balance revenue by reviewing deposits youve
  submitted to sales and receivables to ensure they
  are recorded in your account in FAMIS. Call
  Sales Receivables to resolve problems.

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SL Accounts (2)

• Depts always balance the SL Statement
• Expenses
• Budget Est Expense Actual Expenses
  Encumbrances Avail to Spend (Scr19 34)
• Avail to Spend is expressed as positive number,
  unless it is in the hole. Corrective action
  must be taken when an account is in the hole.
• Balance expenses by reviewing expense
  transactions on statements to ensure they are
  transactions your dept authorized. Call A/P to
  resolve problems.

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Support Accounts

• Optional. Dept sets up and maintains.
• Simply a subdivision of an SL. When all SAs
  added together, then they SL.
• Work just like SLs. Revenues and Expenses
• Dept should reconcile these just like they do the
  SL.

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Summary

• SLs GLs work together
• Account Mapping
• Account Reconciling

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Dollar Data
23
Subcodes

• Codes that track account activity.
• 2 types
• Account Control used with GLs only
• Screen 805
• Object Code used with SLs and SAs only
• Screen 806
• See Quick Expense Code Listing on-line at
  http//hscconcord.tamu.edu/hscfa/accounts_payable.
  html

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Account Control

• Screen 805
• 1XXX Assets
• 1100 Cash
• 1300 Accounts Receivable
• 2XXX Liabilities
• 2100 Accounts Payable
• 3XXX Fund Balances
• 4XXX GL Revenues or transfers
• 5XXX GL Expenses or transfers
• Largely used for tracking and reporting for
  management.
• Departments dont see every day!!

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Subcode

• Screen 806
• 0XXX Revenues
• 1100-1800 Salaries/Wages
• 19XX - Benefits
• 3XXX Travel
• 4XXX Supplies other goods
• 50XX Utilities
• 51XX Telecommunications
  Departments use these daily!!
• 5200 5499 Services http//hscconcord.tamu.edu
  /
• 5500 Maintenance Repair hscfa/accounts_payab
  le.html
• 56XX Contracted Services
• 57XX Controlled Items
• 58XX Rental
• 59XX Scholarships
• 6XXX Other
• 8XXX Capital Items

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Types of Transactions

• Budgets
• Receipts
• Disbursements
• Encumbrances
• Journal Entries

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Budgets

• The estimated monetary plan for a fiscal year
• Revenue budget (usually only 2XXXXX, 3XXXXX, and
  4XXXXX accounts)
• Expense budget all accounts
• Budget can be established through annual budget
  process or through budget transfer request Form
  at http//hscconcord.tamu.edu/hscfa/gen_actg.htm
  l

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Disbursement

• A payment of any type.
• Payroll
• Accounts payable check
• Interdepartmental transfer (IDT)
• One HSC dept pays another for services
• CLMD pays Communications for posters (Expense for
  CLMD, revenue for Communications)

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Encumbrance

• Money that is committed for a specific purpose
• Open commitment
• Dept creates 5 online purchase doc for supplies
• FAMIS encumbers 5 for 4010 object code
• Payments enter voucher cycle release
  encumbrance
• FAMIS prints check
• Finance Admin mails check to vendor

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Receipts

• Send to Kyle Foster-Sales Receivables
• Cash sales
• Interdepartmental transfers
• Accounts Receivable Billing (Communications)
• Sale of other asset
• Gifts/Donations
• Send to Kristin Nace- Accounts Payable
• - Reimbursements - Kristin will apply against
  original voucher.

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Journal Entry

• A transfer of dollars between two or more
  accounts.
• Processed by Finance Admin or automatically by
  FAMIS when updating the GL.
• May not appear on SL statement.
• Thus, important to balance GL statement.

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Transaction Codes

• On the transaction screens (23, 46, 47, 48, 81)
  FAMIS tells you what type of transaction it is
  based on the Transaction Code (TC).
• Budget 02X
• Disbursement 04X, 06X
• Encumbrance 05X
• Receipt 03X, 06X
• Journal Entry 06X
• See Transaction Codes sheet (pgs 15-16 in packet)

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Transaction Code Example

• If looking for all actual expenses in account
  288000 in September, go to screen 46, type in
  account 288000, month 09 and hit enter. You can
  ignore all items with Sbcd beginning with 0
  (revenues), and all items with TC 05X
  (encumbrances) and 02X (budget). The remaining
  transactions are what you are looking for!

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Other Handouts

• Helpful Screens (pg 5 in packet)
• Budget vs. Actuals (pgs 13-14 in packet)

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Monthly Account Statements

• What are these things telling me?????

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SL Statement

• FBMR295 Three Parts
• SL Account Summary (pg 21 in packet)
• summarizes activity by object code-SAME AS SCREEN
  19
• Open Commitment Status Report (pg 22) supports
  Open Commitments column of SL Account
  Summary-SAMEAS SCREEN 21 IN FAMIS
• SL Detail Transaction Report (pg 23) supports
  Actuals-Current Month column of SL Account
  Summary-SAME AS SCREEN 49 IN FAMIS

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SL Account Summarypg 21 in packet

• Budgets Original vs Revised
• Original
• From HSC Budget Process in Spring
• From ending balance from previous year
• From balances encumbered at end of last year
• Total Sum of what you started with
• Revised
• From Original budget /- any changes from budget
  transfer requests or revenue
• Note how it is transferred from Budget Pool to
  actual expense object code as funds are spent

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SL Account Summary Cont.

• Open Commitments / Encumbrances
• Funds that you have committed to a specific
  purpose. Have ordered, but not received and/or
  been invoiced.
• On-Line Purchasing creates an encumbrance when
  you enter a new document into FAMIS.
• This column tells you how much is committed, but
  not paid at the end of the month

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SL Account Summary Cont.

• Actuals Current Month
• Funds spent. Check has been cut.
• Balance Available
• Amount of Budget you have left to spend for the
  remainder of the year.
• Questions?

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Open Commitment Status Report-pg 22 in packet

• Open Commitment Encumbrance
• Report gives detail by on-line purchasing
  document of what you have committed, but not paid
  for yet.
• Not paid for yet because item has not been
  received, invoice has not been received, or
  Accounts Payable hasnt finished processing it
  yet.

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SL Detail Transaction Reportpg 23 in packet

• Lists every transaction to hit your account for
  that month. This is the report you reconcile to.
• Balance Forward will be your ending balance
  from previous month
• Description, date Ref s use to help you
  identify what it is.
• Balance Forward Total Sales/Expenses Total
  Encumbrances Ending Balance

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SL Detail Transaction Report Cont.

• What path does an expense follow?
• You enter on-line document creates an
  encumbrance which shows up in encumbrance column.
  This takes it out of your balance available.
• Document is approved and Accounts Payable
  processes it Encumbrance is released and item
  is recorded as an actual expense. This has no
  affect on your balance available.

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GL Account Activitypg 24 in packet

• FBMR291
• Summarizes what happens at the SL
• Points of interest
• Total to date Fund Balance If Fund Balance is gt
  SL Balance Available encumbrances, then could
  increase SL budget by difference
• Fund Additions/Deductions Section to watch for
  items that affect fund balance that do not always
  run through SL.

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REVIEW

• Review your notes
• Questions?
• Comments?
• Discussion?
• Before you leave please complete the course
  evaluation on Page 25 of your packet and leave in
  the center of the table.
• Thank You!