Financial Processing > Standard Transaction E-Docs

Advance Deposit

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     In order for users to submit the Advance Deposit document, the ENABLE BANK SPECIFICATION IND parameter must be set to Y and the DEFAULT_BANK_BY_DOCUMENT_TYPE parameter must be completed. Even if your institution is not planning to use the Bank Offset feature in KFS, the DEFAULT_BANK_BY_DOCUMENT_TYPE parameter must be completed if your users plan to use the Advance Deposit document. Bank offsets will not be created if the Bank Offset feature has not been configured

The Advance Deposit (AD) document is used to record deposits that go directly to the bank, without being verified through the normal cash receipts process. This document enables distribution of the amount received to the appropriate accounts in the financial system.

The AD document is used to record deposits that are not processed through a central processing area (such as a Cashier's Office). The AD document is used by university departments that make their own deposits, departments that use a lockbox at the bank for cash receipts, and anyone who needs to record bank deposits that are not processed through the Cashiers Office. The AD is used when checks or cash are received and need to be credited to a KFS account. The user creating the AD is responsible for ensuring that the actual bank deposit occurs. The AD document creates the specified accounting entries in the KFS.

Document Layout

The AD document has its own unique tab called Advance Deposits in addition to the standard financial transaction tabs.

   For more information about the standard tabs, see Standard Tabs.

Advance Deposits tab

Advance Deposits tab definition

Title	Description
Bank Code	Required. Enter the bank code number to which the funds are deposited or search for a bank account from the Bank Account lookup. The bank code is automatically carried over.
Date	Required. Enter the actual date of the deposit or select it from the calendar.
Location Code	Required. Identifies the department making the bank deposit.  Enter the location code for the department processing the deposit.
Description	Optional. 40 Character field provides a brief description of the deposit transaction. This is for departmental use only, and does not appear on financial reports.
Bank Reference	Optional. Intended for bank reconciliation purposes by central office. Field may be blank or, if used, must be exactly 11 digits.
Amt	Required. Enter the total amount of the deposit.

Accounting Lines tab

Sales Tax Lookup

The AD document provides the capability to record and account for Michigan Sales tax on the sale of items when required. To account for the 6% Michigan sales tax, an additional accounting line is added to record the amount of tax. The accounting detail for completing the sales tax accounting line is contained in the Sales Tax help button  in this tab.

Process Overview

Business Rules

· The advance deposits total amount must be greater than zero.

· The advance deposits total must be equal to the total of the Accounting Lines tab.

· Negative accounting line amounts are allowed.

· There must be at least one accounting line in the document

· The AD document is one-sided. The KFS automatically generates the other side of the entry affecting the cash account, as defined by data entered into the document.

· Object sub type and object code restrictions are as follows.

Object sub type code type restrictions for Advance Deposit documents

Object Sub Type Code	Description	Restrictions
AR	Accounts Receivable	Unallowable
BI	Bond Issuance	Unallowable
BU	Budget-Only Object Codes	Unallowable
CA	Cash	Unallowable
CE	Cost Recovery Expenses	Unallowable
CL	Capital Lease Purchases	Unallowable
CS	Cash	Unallowable
DR	Depreciation	Unallowable
FB	Fund Balance	Unallowable
FR	Fringe Benefits	Unallowable
HW	Hourly Wages	Unallowable
MT	Mandatory Transfers	Unallowable
NC	Non-Current Assets Non-Current Liabilities	Unallowable
NL	Non-Current Liabilities	Unallowable
PL	Capital Assets	Unallowable
RE	Reserves	Unallowable
SA	Salary And Wages	Unallowable
TF	Transfer Of Funds	Unallowable
TN	Transfers - Generic	Unallowable
VA	Valuations And Adjustments	Unallowable

Object type code restrictions for Advance Deposit documents

Object Type Code	Description	Restrictions
ES	Expense Not Expenditure	Unallowable
IC	Income Not Cash	Unallowable

Consolidated object code restrictions for Advance Deposit documents

Consolidated Object Code	Description	Restrictions
FDBL	Fund Balance	Unallowable

Routing

After an AD document is submitted, it is automatically approved the document status is 'FINAL' .However, the document routes for ‘FYI’ to the Fiscal Officer(s) and to the Cashier Administration for oversight. The transaction is posted to the G/L during the next G/L batch process.

Initiating an Advance Deposit Document

1.     Select Advance Deposit from the Financial Transactions menu.

2.     Log into the KFS as necessary.

A blank AD document with a new document ID appears.

3.     Complete the Advance Deposits tab and click .

Enter an advance deposit line, click add, and continue adding as many advance deposits as necessary.

4.     Complete the standard tabs.

  For information about the standard tabs such as Document Overview, Notes and Attachments, Ad Hoc Recipients, Route Log, and Accounting Lines tabs, see Standard Tabs.

5.     Click .

6.     Review the General Ledger Pending Entries tab.

The pending entries include offset generation lines to cash or fund balance object codes.

7.     Review the Route Log tab.

No approval is required, but an FYI generated to the Fiscal Officer and the Cashier Administration.

     For more information about the Route Log, see Route Log.

Example

The University receives a check from the Beckman Foundation for a grant agreement. At this University, separate bank accounts are maintained for grant related funds and deposits to these accounts are not routed to a central processing office.

The Advance Deposit document allows the area receiving the check to directly deposit the check into a designated bank account and properly reflect the credit in the correct account in the KFS. The advance deposit generates an FYI to the Fiscal Officer(s) and to the Cashier Administration after it is submitted and is at a “Final” status.