Cost Share Transfers

Core Modules > General Ledger (GL) > GL Process > Transaction Validation ('Scrubber') > Transaction Generation

Cost Share Transfers

Cost sharing allows for sharing of costs related to Contracts and Grants accounts. Expenses associated with a grant or contract that are not paid by the sponsoring agency are considered to be cost share, and the KFS can track these expenses in special cost share sub-accounts. A cost share sub-account is created as part of the contract or grant account for which costs are being shared. The sub-account is also assigned a 'source account' that identifies the account that actually bears the expenses that are being shared.

Cost share transfers involve transferring funds into a Contracts and Grants cost share sub-account (to record income), from the source account (to record the charge).

Any expense that occurs on a cost share sub-account is eligible for this transfer of funds. Expenses occurring on selected document types may be excluded from the generation of cost share by adding them to the COST_SHARE_DOCUMENT_TYPES parameter. In the base data, the journal voucher or auxiliary voucher (accrual type) are excluded from cost share generation via this parameter.

In order to qualify for cost share transfers, the transaction must:

• be associated with an expense object code type (defined in the COST_SHARE_OBJECT_TYPES parameter)

• have a balance type of 'Actuals,' and

• be on a Contracts and Grants account and a sub-account with a sub-account type of 'CS.'

Cost share transfers are posted at a summary level. For the income side of the transfer the document type is 'TF (Transfer of Funds)' and the object code is an institutionally-defined transfer of funds revenues code (defined by the COST_SHARE_OBJECT_CODE parameter). The origin code of the transaction is set to 'CS (cost share),' the document number is pre-fixed with 'CSHR,' the transaction description is set to 'Generated Cost Share from account XXXXXXX MM/DD,' and the transaction date is set to the run date of the process. An appropriate offset to cash for the income side of the transfer is also generated.

For the expense side of the transfer, much of the above logic applies with a few changes. The chart, account, and sub-account for the source account that was found on the sub-account table are used. The transaction description is set to 'Generated Cost Share from account XXXXXXX MM/DD.' The correct object code to use for the charge is determined by the object code level. A KFS parameter (COST_SHARE_OBJECT_CODE_BY_OBJECT_LEVEL) maps object code levels to specific institution-defined object codes to which the cost hare transfers are recorded.