1 REF Receives Property

1
-1- REF Receives Property
The Real Estate Foundation receives title to a
piece of property, consisting of building and
land, with an appraised value of 5,000,000.
1300000 is a REF IO for a Specific Property.
2899999 is a REF IO for all Gifts. 400811 is a
flow through expense that will be cleared when
the asset sells. 801047 should be Gift Income G/L
not Gain
2
-2- REF Settles to an Asset
1300000 is a REF IO for a Specific Property. The
Real Estate Office will be able to track all
activity for this property against this IO, even
though everything will settle elsewhere.
3
-3- Expenses Incurred-Paid by CUR
The Foundation incurs expenses of 14,000 in
preparing the property for sale.
2732261 is IO in CUR for a Specific Property.
Note it should not settle
4
-4- Expenses Transferred to REF
Inter-company transfer, doc type SX, to transfer
expenses from CUR IO to REF RE object. Requires
creation of transfer GLs 950008 Intercompany
Clearing Liability for REF, and 950007
Intercompany Clearing Receivable for CUR.
Note Kyriakos suggests, for ease of finding these
transactions, we always begin with REF. 2732261
is IO in CUR for a Specific Property. 1300000 is
REF specific property IO.
5
-5- REF Settles Expense
REF will use 1300001 temporarily to settle
non-asset expenses from Property IOs (1300000).
Prefer to only settle G/L (400811) to asset and
keep other activity on Property IO. Cost Element
600807 doesnt seem to be in Display variant
1SAP, Primary cost posting, or 2SAP, Secondary
cost posting, because I can not view the CO
document. No. That is not the problem because I
can drill down to document 600022401, which is
settling the same cost element. So why cant I
drill down on this document?
6
-6- Asset Sold by REF
The property sells for 5,015,000.
1300000 is a REF IO for a Specific Property.
400811 is a flow through expense that was used
when title was received (transaction 1). This
transaction clears it.
7
-7- REF Settles Gain
REF will use 1300002 temporarily to settle gains
on asset sales from Property IOs (1300000).
Prefer to only settle G/L (400811) to asset and
keep other activity on Property IOs.
8
-8- REF Settles Asset Sale
9
-9- Net Proceeds Transferred to CUR
The net proceeds of 5,001,000 (5,015,000
14,000) are transferred as a gift from the
Foundation to MIT.
1180000 is a CUR Generic Gift IO and 2899999 is a
REF Generic Gift IO.
10
REF Cash (asset)
Cash 100530
(6) 5,015,000
5,015,000 (9)
11
REF Asset (asset)
Asset 170000
(2) 5,000,000
5,000,000 (8)
12
REF Due to MIT (liability)
Due to MIT 950008
14,000 (4)
(9) 14,000
13
REF Specific Property I O
14
REF Specific Property Internal Order
Property IO 1300000
Flow-through G/L 400811
(1) 5,000,000
(1) 5,000,000
5,000,000 (2)
14,000 (5)
(4) 14,000
5,000,000 (6)
5,000,000 (6)
15,000 (6)
(7) 15,000
(8) 5,000,000
Materials Serv 420226
Settlemnt Plant Asset 600518
5,000,000 (2)
(4) 14,000
(8) 5,000,000
Gain from Asset Sale 801047
Expense Settlement to IO 600807
14,000 (5)
(7) 15,000
15,000 (6)
In slide 13 there are 4 transactions against cost
element 600518 (Settlement Plant Asset). Two of
these transactions were experiments with
settlements and not part of the scenario.
Ultimately, we would like to get rid of the
transactions involving Expense settlement to IO
600807 and leave all activity except assets on
Property IO.
15
REF Specific Property IO no Settlements
16
REF Generic Gift Internal Order
Balance will be the gain on the sale (debit)
Generic Gift IO 2899999
Gift Income 801047
Transfer gift to MIT 800100
5,000,000 (1)
5,000,000 (1)
(9) 5,001,000
(9) 5,001,000
Note that we should have used a gift income G/L
not a gain G/L in transaction 1.
17
CUR Cash
Cash 100530
14,000 (3)
(9) 5,015,000
18
CUR Due from Foundation (Receivable asset)
Due from Foundation 950007
(4) 14,000
14,000 (9)
Note that if they wish to see the detail
transactions on 950007, then we need to set this
G/L for line item detail.
19
CUR Specific Property Internal Order
Specific Property IO 2732261
Materials Serv 420226
(3) 14,000
(3) 14,000
14,000 (4)
14,000 (4)
20
CUR Generic Gift Internal Order
Balance will be total net proceeds
Generic Gift IO 1180000
Unrestricted Gift 800303 (could be restricted)
5,001,000 (9)
5,001,000 (9)