June 27, 2002

 

 

TO:                 Presidents, Vice Presidents, College Financial Supervisors, Enterprise Managers, Bookstore Managers, Cafeteria Managers, Facilities Managers, Financial Aid Managers, Community Services Managers, Senior Staff, District Office Managers

                       

FROM:           Jeanette Gordon, Controller

                        Operations Division

 

SUBJECT: ACCOUNTING PROCESSING IN SAP, EFFECTIVE JULY 1, 2002

                       

The purpose of this communication is to define and establish District procedures for processing accounting transactions and documents in the new SAP System.

 

The District will convert all financial systems to SAP on Monday, July 1, 2002 beginning with fiscal year 2002-03.  All expenditure transfer postings for 2002-03 will be processed through a new Journal Voucher screen via SAP Transaction Code <FB50>. The new forms for Unmatched Salary Correction/Salary Transfer, Journal Voucher, and Offline and Online Misc. Collections Journal Voucher Forms are available through the sap.laccd.edu website. 

 

The current College Adjustment Voucher, Transfer of Salaries, Misc. Collections and Bookstore Collections forms are not valid or acceptable for posting into SAP.

 

The legacy (DEC) system will be available for completing the 2001-02 fiscal year only.  Accounting transactions for 2001-02 are to be posted only through the DEC screens following the year-end closing schedule for fiscal year 2001-02.

 

 

 

I.    Account Code Changes

 

 

The account code structure has now been changed to the new SAP account code structure as follows:

 

 

     

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1. Cost Center replaces location and activity codes for all unrestricted programs. It is used to record expenditures and revenue for unrestricted programs. Cost Centers are arranged in a multi-level hierarchy.

 

2. WBS (Work Breakdown Structure) is used to record expenditures and revenue for restricted programs such as SFP and facility projects.

 

3. Fund is equivalent to Fund plus 0 plus Program from the legacy system.

 

4. G/L (Commitment Items) are basically the same as Object Codes with “00” added at the end. GL accounts are used in FI and Commitment Item in FM.

A complete new SAP Finance New-to-Old Terminology sheet is provided as Attachment # 1.

 

A new Chart of Accounts will be published soon and available on the website to provide a complete listing of SAP general ledger account codes as well as other account elements such as the new Fund, Business Areas, Cost Centers, WBS elements, Funds Centers, Commitment Items, etc. 

 

The Chart of Accounts is available within SAP via the following SAP menu path:

Accounting > Financial Accounting > General Ledger > Information System > General Ledger Reports > Master Data > Chart of Accounts

 

 

II. Unmatched Salary Corrections and Salary Transfer

 

For fiscal year 2002-03 transactions, Business Office staff will make postings via SAP Transaction Code <FB50> (screen) to correct all unmatched salaries and post transfers of salary expenses.

 

A new Unmatched and Salary Transfer form (Attachment #2) is available on the web at sap.laccd.edu.

 

1.      Unmatched Salary Corrections: All unmatched salaries will be posted to Fund 10999, Cost Center 1190B, Administrative Services, and the corresponding GL salary accounts.  It is the responsibility of each college to review and transfer these unmatched salaries to the correct accounts.  The legacy screen, F355, will no longer be used.

 

2.      Salary Transfers: All salary transfer postings must have matching GL account codes.  For postings involving different legacy funds, e.g. transfer from fund 1 to fund 5, GL accounts Due To and Due From must be used to balance the entries for legacy funds.

 

 

III.   Supplies and Printing Expense Transfer  

The new Journal Voucher form should be used for supplies and printing expense transfers  

(see Attachment #3):

 

1.      Business Office staff will continue to post transfers within 45xxxx GL accounts directly into SAP.

 

2.      All other transfers should be submitted on the new Journal Voucher form.  A College CFS can e-mail the form to Accounting, Dee Dee Jacobe for processing.  The e-mail from the CFS will suffice for an electronic approval.

 

3.      Once the document has been posted into SAP, Accounting will notify the

College Business Office staff of the transaction document number posted in SAP.

The college staff will then be able to view the transaction in SAP.  

 

IV.   Student Returned Checks

 

Effective July 1, 2002, student returned checks will be handled as follows:

 

 

1. Business Offices will deposit checks with City National Bank:

1.      All checks must have the applicable student’s social security number on them prior to being deposited.

 

2. The Bank forwards the student returned checks to District Accounting:

a.      Using SAP Transaction Code <FB70> Enter A Customer Invoice screen, Accounting enters the returned checks by payer’s name and the student’s social security number.  This posting will create an account receivable and reduce cash.  Accounting will then forward the returned check to the College Business Office.

b.      Via the Student Information System, College Business Office personnel create a hold on the student’s records.

c.      Accounting schedules and sends the first dunning notice to the parties that wrote the bad checks.

d.      If payment has not been received, 30 days later from the date of the first dunning notice, Accounting sends a second dunning notice.  This process will be repeated as often as necessary. 

 

3.             When the College Business Offices receive payment for returned checks, the College Business Office staff will post Incoming Payments on SAP via Transaction Code <F-28>. This posting will remove the receivable, increase cash, and record any applicable returned check fee revenue.  Via the Student Information System, College Business staff will then remove any holds on a student’s record.  Training will be provided in July on how to process collections from students for the returned checks.

 

 

V.   Collections Reports

 

Business Office will continue to prepare and submit both on-line and off-line collection reports using the new forms (available on the website and see Attachment #4) and forward to Accounting for posting.

    

1.      Miscellaneous Collections – the College Business Office completes the form and e-mails the completed form to Accounting, attention: Bernadette Trinidad for posting.

 

2.      After posting, Accounting will notify the College Business Office the SAP document number.  The college staff can then view the posted transaction.

         

3.  Bookstore and Cafeteria Collections Reports - The forms and instructions will 

     be available next week on the web site.  Additional instructions will be provided  

     on how to complete these forms.

 

 

VI.   Resources

 

In addition to the website, SAP has set up a support hotline beginning July 1, 2002.  The purpose of this hotline is to assist users in navigating through the menus and screens.  The SAP Help Desk number is 213-891-2117 or by e-mail at SAP Help in the e-mail directory:

·        SAP Technical Support -- use the Help Desk number.

·        Accounting-specific questions -- use the following Accounting Office contact support:

Ivan To, ext. 2091, New GL Accounts and Accounting Procedures.

Belinda Vallo, ext. 2060, Posting and procedures on new forms.

 

Technical support for other financial areas is available on the SAP Help Desk directory.

 

This memo should be distributed to all concerned staff members who have any responsibility for budget initiation, authorization and processing.

 

 

JG:it

 

Cc:  Chancellor

        Peter Landsberger

        Rob Alworth

        Edgar Coronel

        SAP Consultants

        SAP Project Team Members

        Controller’s Staff

 

 

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