Plant Indebtedness
Plant indebtedness entries for notes and bonds payable are similar in nature to the capitalization entries, with a few exceptions. The original plant indebtedness entries occur on liability object codes (a balance sheet item) and, because there are fewer classifications, the same object code is used to record the item in the plant fund. Whereas the capitalization entries add items to the balance sheet (set up assets), these entries move the liability from select fund groups to the plant fund.
To generate the bond and note liability in the plant fund, a transaction must have a balance type of 'Actuals' and belong to an institutionally-specified sub-fund group (defined in the PLANT_INDEBTEDNESS_SUB_FUND_GROUPS parameter) and object code sub-type (defined in the PLANT_INDEBTEDNESS_OBJECT_SUB_TYPES parameter). The process then uses the organization associated with the account of the original transaction to determine the correct plant fund account number. The campus plant fund account is always used for plant indebtedness entries.
The KFS includes 'Transfer to Net Plant' in the transaction description of the entry occurring in the original account and sets the description of the entry occurring on the plant fund account to 'Generated Transfer from (chart and account number of original entry).' In addition, appropriate offsets to the fund balance object code are also generated to balance the entries.
Cost Share
Transfers