Banner Finance Cost Accounting Training Workbook Release 8.4 – December 2009 Updated 4/30/2012
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Revision History Log

Publication Date	Summary
April 24, 2008	New version that supports 8.0 software.
May 30, 2008	Minor template formatting changes.
February 1, 2010	Updated for Banner 8.4
4/30/2012	Updated to apply the Ellucian template.

Notice of rights

© 2012 Ellucian. All rights reserved.

Contains confidential and proprietary information of Ellucian and its subsidiaries. Use of these materials is limited to Ellucian licensees, and is subject to the terms and conditions of one or more written license agreements between Ellucian and the licensee in question.

Table of Contents

Introduction	4

Process Introduction	6

Set Up	8

Cost Accounting Forms	9

Rate Type Code Maintenance Form	11

Rate Type Rule Maintenance Form	13

Internal Rate Code Maintenance Form	15

Cost Type Code Maintenance Form	18

Inventory Code Maintenance Form	23

Equipment Tag Maintenance	26

Organization/Rate Code Maintenance Form	28

Rate Code by Cost Type/Organization Maintenance Form	31

Classification Maintenance Form	35

Employee Maintenance Form	37

Assigning Billing Rates	40

Self Check	44

Answer Key for Self Check	46

Day-to-Day Operations	48

Creating Customers	49

Creating Projects	55

Recording Project Charges	61

Billing Projects	69

Running Queries	72

Creating External Rates	79

Self Check	84

Answer Key for Self Check	86

Appendix	90

Forms Job Aid	91

Terminology	93

Introduction

Course goal

This course describes Banner’s support for the Cost Accounting process, which allows the tracking and billing of all costs associated with a project performed either for other departments in the enterprise or for external customers. Provision is made to allow different rates to be charged to different customers. Project costs may be encumbered, if desired.

This workbook is divided into three sections:

Introduction

Set-up

Day-to-day operations

Course objectives

In this course you will learn how to

view and create rate types

create rate codes and attach them to rate types

create cost types by organizations

define inventory items

set up equipment tags

define valid rate codes

assign rate codes to specific cost types for organization combinations

create and modify classification codes

define general persons

assign billing rates

create customers

create projects

record project charges

bill projects

query cost accounting information

create external rates.

Intended audience

Personnel involved in Cost Accounting.

Prerequisites

To complete this course, you should have

completed the Education Practices computer-based training (CBT) tutorial Banner 8 Fundamentals, or have equivalent experience navigating in the Banner system.

Client responsibility

The client must complete several tasks before the training consultant arrives at the site to conduct the course.

Before you set up the current module, the following elements must be defined in the Banner Finance System:

These elements will be specified by your instructor (if any.)

If you are unable to complete these tasks before the course is scheduled, please contact your account consultant for assistance.

Process Introduction

About the process

Banner’s Cost Accounting module provides a means of automatically debiting expenses related to a project or an ongoing institutional enterprise (for example, a copy center or print shop) to a specified expense FOAPAL string, while simultaneously posting a credit to a corresponding income FOAPAL string. Expenses may either be directly assigned to the project (FCAACCT) or recorded through the invoice entry form (FAAINVE) or through the Journal Voucher Entry forms (FGAJVCQ, FGAJVCD).

A billing process (FCBBILL) totals the expenses recorded by any of the above means within a specified date range and creates the posting to debit these against the expense account specified in FTMCHRG, and to credit the income account specified in FTMPROJ.

The Cost Accounting module provides several inquiry forms which permit the online review of the ongoing expense related to the project or enterprise.

The Cost Accounting module includes a complex rate structuring system. This feature permits great flexibility in billing and breakdown of the costs associated with the project or enterprise.

Flow diagram

This flow diagram outlines the cost accounting process.

What happens

Stage	Description
Finance Personnel
1	Creates the basic rate structure.
2	Assigns rates of expenses for each code.
3	Creates customers.
4	Creates projects.
Project Personnel
5	Creates invoices that reference projects.
6	Records project costs.
Finance Personnel
7	Bills projects.

Set Up

Section goal

The purpose of this section is to summarize the set-up process and detail the procedures to set up your Banner system to automatically debit expenses related to a project or an ongoing institutional enterprise to a specified expense accounting distribution while simultaneously posting a credit to a corresponding income accounting distribution.

Objectives

In this section you will learn how to

view and create rate types

create rate codes and attach them to rate types

create cost types by organizations

define inventory items

set up equipment tags

define valid rate codes

assign rate codes to specific cost types for organization combinations

create and modify classification codes

define general persons.

Cost Accounting Forms

Introduction

These are the Banner forms that you will use to set up Cost Accounting.

Form Description	Banner Name
Rate Type Code Maintenance Form	FTMRTYP
Rate Type Rule Maintenance Form	FTMRRUL
Internal Rate Code Maintenance Form	FTMINRT
Cost Type Code Maintenance Form	FTMCTYP
Cost Type by Organization Form	FTMSCTO
Inventory Code Maintenance Form	FTMINVT
Equipment Tag Maintenance Form	FTMEQPT
Organization/Rate Code Maintenance Form	FTMIRTO
Rate Code by Cost Type/Organization Maintenance Form	FTMRTCT
Classification Maintenance Form	FTMCLAS
Employee Maintenance Form	FCAEMPL

Scenario 1

In order to examine the functions of this module, we will set up projects reflecting the following two scenarios:

The Maintenance Department performs a wide variety of functions on campus, such as electrical work, heating, air-conditioning, plumbing, painting, and small construction projects.

We are going to define:

standard rates for various maintenance technicians

rates for the equipment used

rates for the materials used.

These rates will be used in billing small non-recurring projects, as well as standard monthly maintenance projects.

Scenario 2

The Printing Office prints, copies, collates, and binds papers for the entire organization, as well as for the community at large. They generally use standard paper, but also have two premium papers available at an extra charge. Departmental charges are billed monthly.

Rate Type Code Maintenance Form

Introduction

The Rate Type Code Maintenance Form (FTMRTYP) provides the ability to create additional rate types. These are the basic units of expense, and include a special group (DC, DL, ER, IH, IL and MM) that are system-required and used in the automatic rate calculation feature of Cost Accounting.

Banner form

Steps

Follow the steps below to view existing rate types delivered with the Banner Finance System and create several additional types.

Access the Rate Type Code Maintenance Form (FTMRTYP).

Note: The codes in the Rate Type field are provided with the sample data (DC, DL, ER, IH, IL, MM and PU). These should not be altered in any way, because they are associated with automatic rate calculations. These codes are the only rate types on which auto rate calculations may be run.

For the purpose of these exercises, assume that the automatic rate calculation will not be used.

Enter LB in the Rate Type field.

Enter Labor in the Short Description field.

Enter Labor Charges (hours) in the Long Description field.

Enter 90 in the Sequence Number field.

Repeat steps 2-5 for the following entries:

Rate Type	Short Description	Long Description	Sequence Number
LI	Overhead	Indirect Labor (hours)	95
CC	Copy/Print	Copying and Printing	85
BC	Bind/Coll	Binding and Collating	86

Click the Save icon.

Click the Exit icon.

Rate Type Rule Maintenance Form

Rate type rule maintenance

Use the Rate Type Rule Maintenance Form (FTMRRUL) to view the rate types previously created along with the six rate types delivered with the sample data. This form may also be used to set indicators specifying cost elements to be included in automatic rate calculations and to specify required parameters.

The six sample data rate types are displayed, along with the new rate types you just created.

The five Rate Calculation Indicators (Direct Labor, Indirect Labor, Inventory Handling, Material Management and Equipment Rental) cannot be changed. Newly created rate types are designated with the value of N for each of these indicators, since automatic rate calculation is not possible.

The three columns on the right (Employee Number, Inventory Code, and Equipment Code) indicate parameter requirements on the Cost Accounting Maintenance Form (FCAACCT). The System populates these columns with the value N, but this may be updated.

The labor rates delivered with the System (Direct Labor and Indirect Labor) have the Employee Number field value set to Y. The employee number is required when a cost type containing rate codes associated with rate types is used.

Banner form

Steps

Follow the steps below to view the rate types previously created in the Rate Type Code Maintenance Form (FTMRTYP).

Access the Rate Type Rule Maintenance Form (FTMRRUL).

Access the record containing your newly created rate type of CC.

Enter Y in the Inventory Code field.

Click the Save icon.

Click the Exit icon.

Internal Rate Code Maintenance Form

Introduction

Use the Internal Rate Code Maintenance Form (FTMINRT) to create rate codes and attach them to rate types. Rate codes will be associated to specific billing rates and will print on the customer’s bills.

Note: Only the code, not the description that will print on the bills, therefore you should try to make the code as logical as possible.

These are your institution’s basic units of expense. Each of these ‘internal’ rate codes will be linked to one of Banner’s rate types, though these may be more detailed than the rate types.

Example: You may wish to break out Banner’s ‘ER’ rate type (Equipment Rental) into two internal rate codes (e.g., Equipment Rental and Equipment Usage). You will associate your actual rates of expense with these internal rate codes. These are the codes that appear on the customer billing.

Banner form

Steps

Follow the steps below to create internal rate codes.

Access the Internal Rate Code Maintenance Form (FTMINRT).

View the existing internal rate codes.

Perform an Insert Record function if there are no blank lines available.

Enter the following data, performing an Insert Record function for each record:

Internal Rate	Short Description	Long Description	Rate Type	Description
REG	Labor	Direct Labor – Reg Hours	LB	Labor
O/T	Laborer OT	Overtime Hours	LB	Labor
SUPV	Supervisor	Supervisor	LB	Labor
ELEC	Electric’n	Electrician	LB	Labor
HVAC	HVAC Tech	HVAC Technician	LB	Labor
PLUM	Plumber	Plumber	LB	Labor
ADM	Admin	Administrative	LI	Overhead
LABR	Clerical	Clerical Labor	LI	Overhead
EQPT	Equip Use	Equipment Use (hours)	ER	Equip Rent
MATL	Materials	Materials Usage	IH	Invent Han
COPY	Copying	Copying Charges	CC	Copy/Print
PRNT	Printing	Printing Charges	CC	Copy/Print
COLL	Collating	Collating (per page)	BC	Bind/Coll
BIND	Binding	Binding (per item)	BC	Bind/Coll

Click the Save icon.

Click the Exit icon.

Cost Type Code Maintenance Form

Introduction

Cost types are the basic billing unit in the Cost Accounting module. Cost types are created on the Cost Type Code Maintenance Form (FTMCTYP). They are entered against projects on the Cost Accounting Maintenance Form (FCAACCT).

These are the codes that will be used to charge the project expenses. They will be linked to one or several of the internal rate codes, thus permitting a simplified entry of charges that may have several components. For example, a cost type ‘BD’ for ‘Binding/Collating’ could be set up to include separately defined internal rate codes for binding costs, collating costs, copier usage cost, paper cost, etc.

The direct charge Cost Type Code ‘DC’ will be used for any expenses charged to this project using invoices (FAAINVE) or journal vouchers (FGAJVCD, FGAJVCQ).

Banner form

Steps

Follow the steps below to create cost type codes.

Access the Cost Type Code Maintenance Form (FTMCTYP).

Perform an Insert Record function if there are no blank lines available.

Enter the following data in the appropriate fields:

Note: If one of these cost type codes already exists in your system, use a substitute code that makes sense and is unused. For instance, if CO has already been used, CL would be an alternative for Collating.

Cost Type Code	Short Description	Long Description
PA	Painting	Painting (labor costs)
FN	Foundation	Foundation Construction
FR	Frame	Frame Construction
EX	Exterior	Exterior Construction
IC	Interior	Interior Construction - Finishing
EW	Electrical	Electrical Work
PL	Plumbing	Plumbing
MU	Materials	Materials Usage
RF	Roofing	Roof Construction
HV	HVAC	Heating, Ventilation, Air Conditioning
EQ	Equip Use	Equipment Usage (hours)
CP	Copying	Copying (per copy)
PR	Printing	Printing (per page)
CO	Collating	Collating (per page)
BD	Binding	Binding (per item)

Click the Save icon.

Click the Exit icon.

Cost Type by Organization Form

Introduction

The Cost Type by Organization Form allows you to associate cost types with service organizations. Valid cost types are associated with each service organization on the Cost Type by Organization Form (FTMCSTO). These will later be linked to rate codes, which control the actual billing rates.

Banner form

Steps

Follow the steps below to associate cost types to organizations.

Access the Cost Type by Organization Maintenance Form (FTMCSTO).

Enter B in the Chart of Accounts field or double-click in the field to call up the Chart of Accounts List (FTVCOAS) and select a valid and appropriate chart code.

Note: The FOAPAL codes used in these exercises are only for sample purposes. If codes exist on your system that are more appropriate to your institution, substitute them for those in this workbook at your instructor's discretion.

Enter 12503 (Maint of Buildings and Grounds) in the Organization field or double-click in the field to call up the Organization Code Validation Form (FTVORGN) and query for a valid and appropriate organization code.

Perform a Next Block function.

Enter the following cost types for organization 12503 in the Cost Type field.

Note: The descriptions will automatically populate when a Next Record function is performed.

Cost Type	Description
PA	Painting (labor costs)
FN	Foundation Construction
FR	Frame Construction
EX	Exterior Construction
IC	Interior Construction - Finishing
EW	Electrical Work
PL	Plumbing
MU	Materials Usage
RF	Roof Construction
HV	Heating, Ventilation, Air Condition
EQ	Equipment Usage (hours)
DC	Direct Charge

Click the Save icon.

Click the Rollback icon.

Tab to the Organization field.

Enter 12505 (Auxiliary Services) in the Organization field.

Perform a Next Block function.

Enter the following cost types for organization 12505 in the Cost Type field.

Note: The descriptions will automatically populate when a Next Record function is performed.

Cost Type	Description
CP	Copying (per copy)
PR	Printing (per page)
CO	Collating (per page)
BD	Binding (per item)
DC	Direct Charge

Click the Save icon.

Click the Exit icon.

Inventory Code Maintenance Form

Introduction

Codes and unit costs for specific materials used in projects are created for each service organization on the Inventory Code Maintenance Form (FTMINVT). Define inventory items using this form. You can define inventory items for association with internal rate codes that involve the consumption of inventoried resources.

Example: You may define an internal rate code MATL for materials usage. For a specific project, you may use this internal rate code with an inventory code of PAPER to automatically charge for the costs of paper, or with an inventory code of BINDERS to automatically charge for the costs of these materials.

Note: These inventory items do NOT interface with the Banner Stores Inventory module.

Banner form

Steps

Follow the steps below to create the inventory codes.

Access the Inventory Code Maintenance Form (FTMINVT).

Result: The System will populate the Chart of Accounts field with the most recently used Chart of Accounts code (B).

Verify that the Organization field contains your Maintenance Organization 12503 (Maint. of Buildings and Grounds), from the previous exercise.

Note: If it does not, correct this field once you have entered an inventory code. This field cannot be updated until an inventory code is present.

Enter GRAVEL in the Inventory Code field.

Note: You can enter up to eight characters in this field.

Enter Gravel-Hundred Pounds in the Long Description field.

Enter Gravel in the Short Description field.

Accept the date in the Start Date field as the System will enter today’s date.

Leave the Termination Date field blank.

Note: This field is optional. It is used to enter a date after which the inventory item will no longer be valid.

Enter 3.59 in the Unit Price field.

Leave the Estimated Units Used field blank.

Note: This field is used for automatic rate calculation.

Leave the Actual Units field blank.

Note: This field is maintained by the Cost Accounting System to accumulate units actually billed to projects.

Click the Save icon.

Click the Rollback icon.

Repeat steps 2-12, entering the following data in the appropriate fields for organization 12503:

Inventory Code	Long Description	Short Description	Unit Price
CEMENT	Cement-Cubic Yards	Cement	.99
LUMBER	Lumber-Board Feet	Lumber	.50
BRICK	Bricks-Hundred Count	Bricks	11.99
MORTAR	Mortar-Cubic Yards	Mortar	.79
PAINT-E	Exterior Paint-Gallons	Ext. Paint	8.99
PAINT-I	Interior Paint-Gallons	Int. Paint	5.79

Repeat steps 1-12, entering the following data in the appropriate fields for organization 12505:

Note: Each inventory item to be billed must be linked to a service organization. The same item may have different billing rates for different organizations.

Inventory Code	Long Description	Short Description	Unit Price
REG	Standard Paper	Std Paper	.04
24#BOND	24-lb Bond Paper	24# Bond	.15
50#BOND	50-lb Bond Paper	50# Bond	.25

Click the Exit icon.

Equipment Tag Maintenance

Introduction

Codes for specific pieces of equipment used in projects are created for each service organization on the Equipment Tag Maintenance Form (FTMEQPT). Defined equipment codes function similarly to the inventory codes. These codes are used in association with an internal rate code to allow a further breakdown of cost for specific types of equipment that may be used for a project.

Note: These equipment items do NOT interface with the Banner Fixed Assets module.

Banner form

Steps

Follow the steps below to set up equipment tags.

Access the Equipment Tag Maintenance Form (FTMEQPT).

Note: The cursor defaults to the Equipment Tag Number field automatically when one has just come from the Inventory Code Maintenance Form (FTMINVT). Use the Shift + Tab keys to navigate back the Chart of Accounts and Organization fields.

The System will populate the Chart of Accounts field with the most recently used value (B).

Enter 12503 (Maint of Buildings and Grounds) in the Organization field.

Enter Backhoe in the Equipment Tag Number field.

Note: You can enter up to eight characters in this field.

Perform a Next Block function.

Enter Backhoe-Hours in the Long Description field.

Enter Backhoe in the Short Description field.

Accept the system date in the Start Date field.

Leave the Termination Date field blank for this exercise.

Note: The next six fields are used in automatic rate calculation and should be left blank for this exercise.

Click the Save icon.

Click the Rollback icon.

Repeat steps 3-10 to enter the following data in the appropriate fields:

Equipment Tag	Long Description	Short Description
GRADER	Grader-Hours	Grader
SHOVEL	Steam Shovel-Hours	Stm Shvl

Click the Exit icon.

Organization/Rate Code Maintenance Form

Introduction

Define valid rate codes for specific service organizations using the Organization/Rate Code Maintenance Form (FTMIRTO).

Use the Rate Code by Organization Maintenance Form to assign rate codes to a specific organization. The rate type you define for the internal rate code determines whether you wish to require a user to enter the Inventory code or Equipment Tag number.

Banner form

Steps

Follow the steps below to define valid rate codes for specific service organizations.

Access the Rate Code by Organization Maintenance Form (FTMIRTO).

Note: The System will populate the Chart of Accounts field with the most recently used code (B).

Enter 12503 (Maint of Buildings and Grounds) in the Organization field.

Perform a Next Block function.

You will now enter rate codes, inventory codes, and equipment tag numbers from the following tables of values. Each line constitutes an individual record.

Rate	Description	Inventory	Equipment Tag
DCGL	Direct Charge General Ledger
REG	Direct Labor – Reg Hours
O/T	Overtime Hours
SUPV	Supervisor
ELEC	Electrician
HVAC	HVAC Technician
PLUM	Plumber
LABR	Clerical Labor
ADM	Administrative
MATL	Materials	GRAVEL
MATL	Materials	CEMENT
MATL	Materials	LUMBER
MATL	Materials	BRICK
MATL	Materials	MORTAR
MATL	Materials	PAINT-E
MATL	Materials	PAINT-I
EQPT	Equip Use	BACKHOE
EQPT	Equip Use	GRADER
EQPT	Equip Use	SHOVEL

Click the Save icon.

Click the Rollback icon

Enter 12505 (Auxiliary Services) in the Organization field.

Perform a Next Block function.

Enter rate codes, inventory codes, and equipment tag numbers from the following tables of values. Each line constitutes an individual record.

Rate	Description	Inventory	Equipment Tag
DCGL	Direct Charge General Ledger
LABR	Clerical Labor
BIND	Binding (per item)
COLL	Collating (per page)
COPY	Copying	REG
COPY	Copying	24#BOND
COPY	Copying	50#BOND
PRNT	Printing	REG
PRNT	Printing	24#BOND
PRNT	Printing	50#BOND

Click the Save icon.

Click the Exit icon.

Rate Code by Cost Type/Organization Maintenance Form

Introduction

Use the Rate Code by Cost Type/Organization Maintenance Form (FTMRTCT) to assign one or more internal rate codes to a specific cost type-organization combination.

Banner form

Steps

Follow the steps below to assign one or more rate codes to specific cost types for organization combinations.

Note: Remember that the cost types are the billing units that will be used in the project billing, while the rate codes contain the actual billing rates that will be used.

Access the Rate Code by Cost Type/Organization Maintenance Form (FTMRTCT)

Note: The cursor defaults to the Cost Type field automatically when one has just come from the Organization/Rate Code Maintenance Form (FTMIRT). Use the Shift + Tab keys to navigate back to the Chart of Accounts and Organization fields.

The System will populate the Chart of Accounts field with the most recently used value (B).

Enter 12503 (Maint of Buildings and Grounds) in the Organization field.

Enter EQ in the Cost Type field.

Perform a Next Block function.

Enter EQPT in the Rate field.

Perform a Next Record function.

Enter REG in the Rate field.

Perform a Next Record function.

Enter ADM in the Rate field.

Note: With the rate set up this way, the rate for equipment usage will be the equipment hourly rate plus $16.25 per hour. (These values will be set up on FCAINRT in the next lesson. $16.25 refers to the combination of REG ($13.75/hour) and ADM ($2.50/hour). Individual equipment rates will also be set on FCAINRT.)

It is possible to associate cost type codes with numerous internal rate codes, including those with a labor, inventory or equipment rate type. A cost type can combine labor and inventory, or labor and equipment, or inventory and equipment, but it cannot combine labor and inventory and equipment.

Accept the System date in the Effective Date field.

Click the Save icon.

Click the Rollback icon.

Repeat steps 3-12 and enter the following cost types for organization 12503:

Cost Type	Rate	Rate Will Be:
EW	ELEC	21.00/hour
EX	REG ADM	16.25/hour (13.75 + 2.50)
FN	REG ADM	16.25/hour (13.75 + 2.50)
FR	REG ADM	16.25/hour (13.75 + 2.50)
HV	HVAC	19.00/hour
IC	REG ADM	16.25/hour (13.75 + 2.50)
MU	MATL LABR	Material cost plus 1.00/unit
PA	REG LABR	14.75/hour (13.75 + 1.00)
PL	PLUM	22.75/hour
RF	REG ADM	16.25/hour (13.75 + 2.50)
DC	DCGL	1.00/unit

Change the Organization value to 12505 (Auxiliary Services) when completed with 12303.

Repeat steps 3-12 and enter the following cost types for organization 12505:

Cost Type	Rate	Rate Will Be:
CP	COPY	Material cost
BD	BIND	15.00 per item
PR	PRNT	Material cost
CO	COLL LABR	.50 per page
DC	DCGL	1.00/unit

Click the Save icon.

Click the Exit icon.

Note: You have completed the initial setup of the billing structure that will be used by the Cost Accounting module. In the day-to-day operations section you will set the actual rates for your charges, define customers for these charges, and define the projects themselves.

Classification Maintenance Form

Introduction

You can define general person records as employees of your projects in order to charge for their labor, both direct and indirect.

Classification codes are created and modified using the Classification Maintenance Form (FTMCLAS).

Banner Form

Steps

Follow the steps below to create and modify employee classification codes.

Note: Examine the employee classification codes provided. You may assign additional codes if necessary.

Access the Classification Maintenance Form (FTMCLAS).

Review the classification codes.

Click the Exit icon.

Employee Maintenance Form

Introduction

Existing persons from your general person’s records can be defined as Cost Accounting employees using the Employee Maintenance Form (FCAEMPL).

Banner form

Steps

Follow the steps below to create and modify employee classification codes.

Access the Employee Maintenance Form (FCAEMPL).

Click the Search icon displayed to the right of the Employee Number field.

Note: You’ll be prompted for two separate lookup lists:

Person Search (FOIIDEN) – choosing this lookup option will allow you to examine ALL of your person records (students, employees, etc.).

Employee Search (FTVEMPL) – choosing this lookup option will ONLY display those persons who have already been defined as Cost Accounting employees.

Select the Person Search (FOIIDEN) option.

Perform an Execute Query function.

Choose any record by double-clicking on the ID.

Perform a Next Block function.

Perform a Next Block function.

Enter B in the COA field.

Enter 12503 in the Organization field.

Select a classification codes in the Classification field.

Perform a Previous Block function.

Click the Save icon.

Perform a Next Block function.

Enter 10.25 in the Wages field.

Note: You must enter something in the fields in this block of the FCAEMPL form or your record will not be saved.

The wage you enter here is NOT the wage that will be charged for this employee. The rate charged will be that associated with the internal rate code billed. These fields are purely informational.

Enter 1.25 in the Benefits field.

Enter 0 (zero) in the remaining fields – Vacation Hours, Sick Hours, Holiday Hours, and Other Hours.

Click the Save icon.

Click the Rollback icon.

Repeat steps 2-16, to create an employee for organization code 12505.

Click the Save icon.

Click the Exit icon.

Assigning Billing Rates

Introduction

In the preceding lessons, you created your basic rate structure. The core of this structure is your internal rate codes. You will now assign actual rates of expense for each of these codes using the Internal Rate Maintenance Form (FCAINRT). This, too, is a ‘set-up’ form, and need not be revisited for each project you create. However, at any time that you do wish to revise your rates, you can return to this form to do so.

Note: The rates are set by rate code, yet you will be charging your customers by cost type code. The actual rate charged to a customer will be the sum of the rate codes that you’ve associated with a cost type in the Rate Code/Cost Type Maintenance Form (FTMRTCT).

The Cost Accounting module also permits you to define external rates in the External Rates Maintenance Form (FTMEXRT). These rates are discounts or surpluses that you wish the system to calculate for individual internal rate codes in the course of billing. These external rate codes are assigned per customer, using the Customer Rate Maintenance Form (FTMCRAT). Thus, if you want to apply a ten per cent discount for all copying jobs done for the Development Office, you can set this up so that this discount will automatically be assessed when billing is run for this department. The assignment of External Rates will be discussed in a separate Lesson.

Note: The Cost Type Code ‘DC’ is used for any expenses charged using invoices (FAAINVE) or journal vouchers (FGAJVCD, FGAJVCQ). Consequently, the Internal Rate Code(s) that are associated with this cost type should sum to a total of 1.00 – if you wish the project to be charged for the actual amount of the invoice or journal. If, for example, the internal rate code associated with this cost type has a rate of .5, you will only charge half of the invoice amount to the project.

Banner Form

Steps

Follow the steps below to create actual billing rates.

Access the Internal Rate Maintenance Form (FCAINRT).

Note: The cursor defaults to the Cost Type field automatically when one has just come from the Organization/Rate Code Maintenance Form (FTMIRTO). Use the Shift + Tab keys to navigate back to the Chart of Accounts and Organization fields.

The System will populate the Chart of Accounts field with the most recently used value (B).

Enter 12503 (Maint of Buildings and Grounds) in the Organization field.

Enter DCGL (Direct Charge General Ledger) in the Rate Code field.

Perform a Next Block function.

Note: The System will populate the Effective Date field with today’s date.

Enter 1.00 in the Internal Rate field.

Click the Save icon.

Click the Rollback icon.

Repeat steps 2-7 above, entering the following records for organization 12503:

Rate Code	Inventory Code	Equipment Tag Number	Internal Rate
REG	13.75
O/T	30.00
SUPV	35.00
ELEC	21.00
HVAC	19.00
LABR	1.00
ADM	2.50
PLUM	22.75
MATL	CEMENT	.99
MATL	GRAVEL	3.59
MATL	LUMBER	.50
MATL	BRICK	11.99
MATL	MORTAR	.79
MATL	PAINT-E	8.99
MATL	PAINT-I	5.79
EQPT	BACKHOE	125.00
EQPT	GRADER	100.00
EQPT	SHOVEL	110.00

Change the Organization field to 12505 (Auxiliary Services).

Repeat steps 2-7 above, entering the following records for organization 12505:

Rate Code	Inventory Code	Internal Rate
DCGL	1.00
LABR	.50
BIND	15.00
COLL	.10
COPY	REG	.04
COPY	24#BOND	.15
COPY	50#BOND	.25
PRNT	REG	.40
PRNT	24#BOND	.51
PRNT	50#BOND	.61

Click the Exit icon.

Self Check

Directions

Use the information you have learned in this workbook to complete this self check activity.

Question 1

What is the purpose of establishing cost types and rates for a service organization?

Question 2

What are the basic billing units in the Banner Cost Accounting module?

Question 3

What is the Rate Type Code Maintenance Form (FTMRTYP) used for?

Question 4

Codes and unit costs for specific materials used in projects are created for each service organization on which form?

Question 5

Which form is used to define inventory items?

Question 6

What is the distinction between cost types, rate types, and rate codes? For what is each used?

Question 7

Most new internal billing rates must be created for every project or enterprise you create in Cost Accounting. True or False?

Question 8

If you post an invoice with a charge against a project, what rate will be billed – the amount of the invoice, or the rate you’ve established in FCAINRT for a direct charge rate code?

Answer Key for Self Check

Question 1

What is the purpose of establishing cost types and rates for a service organization?

Cost types and rates are used to bill out charges for a project.

Question 2

What are the basic billing units in the Banner Cost Accounting module?

Cost types are the basic billing units in the Cost Accounting module.

Question 3

What is the Rate Type Code Maintenance Form (FTMRTYP) used for?

The Rate Type Code Maintenance Form (FTMRTYP) is used to define rate types for the development of Internal rate codes. The rate types are used as headings on the customer’s bill.

Question 4

Codes and unit costs for specific materials used in projects are created for each service organization on which form?

The Inventory Code Maintenance Form (FTMINVT)

Question 5

Which form is used to define inventory items?

The Inventory Code Maintenance Form (FTMINVT)

Question 6

What is the distinction between cost types, rate types, and rate codes? For what is each used?

Rate types are the billing headings; rate codes are the billing subheadings and are associated to actual billing rates. Rate codes are attached to cost types (one or more rate codes may be included in a single cost type), and cost types are the units which are charged against a project. In our example, cost type FN (Foundation) is associated with two rate codes: REG ($13.75/hour) and ADM ($2.50/hour); the total billing for this cost type will be $16.25/hour.

Since REG is rate type LB, it will be billed under the heading “Labor Charges (hours)” while the ADM portion will be billed under the heading “Indirect Labor (hours).”

Question 7

Most new internal billing rates must be created for every project or enterprise you create in Cost Accounting. True or False?

False. Once the internal rates have been established in FCAINRT, and linked to your established cost type codes in FTMRTCT, you can use them on any new project. If a project involves a new Organization code, you will need to associate the cost type codes with this new Organization (in FTMCSTO), and the appropriate rate codes with this new Organization (in FTMIRTO.)

Question 8

If you post an invoice with a charge against a project, what rate will be billed – the amount of the invoice, or the rate you’ve established in FCAINRT for a direct charge rate code?

The rate you’ve established in FCAINRT. Thus, for direct charges from invoices, you must ensure that the cost type code ‘DC’ has a rate of 1.00.

Day-to-Day Operations

Section goal

The purpose of this section is to explain the day-to-day operations to handle cost accounting process.

Objectives

In this section you will learn how to

assign billing rates

create customers

create projects

record project charges

bill projects

query cost accounting information

create external rates.

Creating Customers

Introduction

Customers are the entities that are ‘billed’ for the projects. A customer may be an external entity, like a vendor, or an internal entity, like a department. A customer is created in the Customer Maintenance form (FTMCUST). Any existing general entity record (created via FOAIDEN, SPAIDEN, etc.) can be converted to a customer using this form.

A project may have more than one customer. Your only means of distributing the costs of a project, however, is by percentage. So, if you have multiple customers for a single project, you must develop a percentage formula for distributing the charges of this project among them.

You may also assign external rates to customers, using the Customer Rate Maintenance Form (FTMCRAT). These external rates are either a discount or a surcharge calculated in addition to the basic rates you’ve set in FCAINRT.

Customer ID numbers

Before defining customers on the Customer Maintenance Form (FTMCUST), the customer’s ID number must be entered into the database. An ID may be created in a number of different ways.

The following forms all write records to the General Person Table (SPRIDEN) and the Address Table (SPRADDR):

FOAIDEN (Finance)

PPAIDEN (Human Resources)

SPAIDEN (Student)

APAIDEN (Alumni/Development)

RPAIDEN (Financial Aid)

For this exercise, you will create customers using the Finance Identification Form (FOAIDEN). Normally, the IDs for your internal customers are already created, but this example will start with a new internal customer not yet in Banner.

Banner Form

Steps

Follow these steps to complete the process.

Access the Finance Identification Form (FOAIDEN).

Click the Generate ID button.

Note: the generate ID icon will create either a new record or it will launch you into a common matching form, GOAMTCH if common matching is set up at your institution.

Perform a Next Block function.

Enter a name in the Personal Name Information or the name of a company in the Non-Person Name Information text blocks.

Note: You cannot supply both person and non-person name information under the same ID and you must enter both first and last names in the Personal Name Information.

Click the Save icon.

Select the Address tab to enter addresses for the vendor.

Enter BU (BU is the code for Business) in the Type Code field.

Enter the address in the Address field.

Note: Clicking the Search icon in the Zip/PC field, and selecting a zip or postal code from GTVZIPC will automatically populate the City, State, and Zip/PC fields. If you do this, go to steps 11.

Enter the city in the City field.

Double-click in the State/Prov field, and select a state.

Click the Search icon in the Zip/PC field, and select a zip or postal code.

Double-click in the Phone Type field, and select BU from the list.

Enter a phone number in the Phone number field.

Note: Do not enter dashes in the phone number.

Click the Save icon.

Record your ID # here: _____________________________

Note: Make sure that at least one of your ID’s is defined as a person. Non-person type entities may not be defined as Financial Managers in FTMFMGR.

Repeat steps 2-14 to create at least one additional customer.

Record additional ID #s here: _____________________________

_____________________________

Click the Exit icon.

Banner form

Steps

Follow these steps to complete the process.

Access the Customer Maintenance Form (FTMCUST).

Enter the Customer ID number that you recorded previously in the Customer field.

Perform a Next Block function.

Enter I in the Customer Type field.

Note: Valid values for the Customer Type field are (I)nternal and (E)xternal. Only Internal customers can be defined as financial managers in FTMFMGR, and thus have the expenses for the projects to which they are assigned encumbered.

Accept the system date in the Start Date field.

Note: The Start Date field may be backdated for a new customer, or the System populated date may be accepted.

Leave the Chart of Accounts field blank.

Leave the Organization field blank.

Leave the Contact field blank.

Click the Save icon.

Repeat steps 2-9 for the other ID’s previously created.

Click the Exit icon.

Defining a Financial manager

If you wish to encumber the costs related to a project, you must define the customer for that project as a ‘Financial Manager’, using the Financial Manager Maintenance Form (FTMFMGR).

Banner form

Steps

Follow these steps to define a customer as a Financial Manager using the Financial Manager Maintenance Form (FTMFMGR).

Note: This will permit you to encumber the amount for the project assigned to this customer.

Access the Financial Manager Maintenance Form (FTMFMGR).

Note: The last ID you used will automatically default in.

Enter the Customer ID number that you recorded previously in the Financial Manager field.

Perform a Next Block function.

Enter a description of this customer’s role within your institution, e.g., Department Head in the Title field.

Verify the Active Status checkbox is checked.

Leave the Name Type field blank.

Override the current date with some date prior to the current date in the Effective Date field.

Leave the Termination Date field blank.

Enter B in the Chart of Accounts field.

Enter 12505 in the Assigned Organization field.

Note: The Organization code that you enter here does not really restrict this financial manager. That is, this ID could be used to encumber charges for any organization code, regardless of what is entered here.

Leave the Assigned Location field blank.

Enter BU (business address) in the Default Address Type field.

Enter the sequence number you created for this customer in the Sequence Number field.

Click the Save icon.

Click the Exit icon.

Creating Projects

Introduction

You can create your actual projects using the Project Maintenance Form (FTMPROJ). You can also define the customers related to your projects, using the Charge Maintenance Form (FTMCHRG).

Note: These are the only two Cost Accounting forms where you will be entering FOAPAL strings. In FTMPROJ, you will enter the FOAPAL that will receive the credit side of your Cost Accounting billing entries, and in FTMCHRG, you are defining the FOAPAL(s) that will receive the debit side of this entry.

You are only permitted one income (credit) FOAPAL for a project. You may have multiple charges (debit) FOAPALs, but you can distribute the costs solely by percentage.

Example: Define two projects for the purposes of these exercises, one a construction project involving an outside vendor, the other copying services for the History department.

Banner form

Steps

Follow the steps below using the Project Maintenance Form (FTMPROJ) to create the Basement Waterproofing and Grading project at your institution.

Access the Project Maintenance Form (FTMPROJ).

Enter XXX01 in the Project Code field as a new project code, where XXX represents your initials.

Enter a name for your new project (Basement Waterproofing and Grading) in the Title field.

Perform a Next Block function.

Accept today's date in the Start Date field.

Note: The start date may be backdated for a new project.

Verify the Memo Project checkbox is unchecked.

Note: If the Memo Project checkbox is checked entries will not be posted to the ledgers.

Enter B in the COA field.

Enter 12503 (Maint of Buildings and Grounds) in the Organization field.

Enter the FOAPAL to which the income is to be distributed when project costs are billed to customers in the seven Income fields.

Note: Only one FOAPAL is permitted.

Example: For the purposes of this exercise, use the following values:

Index – leave blank

Fund – 9200 (Renewal and Replacement)

Organization – 12503 (Maint of Buildings and Grounds)

Account – 1720 (Buildings)

Program – 60 (Institutional Support)

Activity – leave blank

Program – leave blank

Click the Save icon.

Select Project Text from the Options menu to add descriptive text to the project.

Result: This opens the General Text Entry Form (FOATEXT).

Enter This is a new project, in the Text field.

Note: The Print box is only used for procurement forms (FOATEXT is a multi-purpose text-entry form) and is not applicable here.

Click the Save icon.

Click the Exit icon.

Result: The Text Exists field is now populated with a Y (Yes).

Click the Rollback icon.

Repeat steps 2-10 to create project XXX02, Annual Printing Office Charges for the History Dept.

Example: Input this information into the following fields:

COA – B

Organization – 12505 (Auxiliary Services)

Fund – 3100 (Auxiliary Services)

Organization – 12505 (Auxiliary Services)

Account – 5940 (Other Revenue)

Program – 60 (Institutional Support)

Click the Save icon.

Click the Exit icon.

Assigning customers and accounting distributions

After creating projects at your institution, you will also need to define the customers related to your projects. Use the Project/Customer Charge Maintenance Form (FTMCHRG) to assign customers and accounting distributions to a specific project.

Banner form

Steps

Follow the steps below to assign customers and accounting distributions to a specific project at your institution.

Access the Project Charge Maintenance Form (FTMCHRG).

Enter XXX01 (Basement and Waterproofing and Grading project) in the Project field.

Accept the system date in the Transaction Date field.

Note: The date may be changed to any date that is in an open fiscal period. If encumbering, this will be the accounting date of the encumbrance.

Perform a Next Block function.

Enter the customer number previously created for this project in the Customer field.

Enter the FOAPAL accounting distributions to be charged.

Example: For our exercise, use the FOAPALs below.

Fund – 1110 (Current Unrestricted)

Organization – 11101 (Dean School of Business)

Account – 7750 (Other)

Program – 60 (Institutional Support)

Note: Charges may be to the Operating Ledger or to the General Ledger.

Enter 100 in the Percent field.

Note: Percentages must add up to 100% upon completion. The implication is that whenever charges are billed to a project, they will be split as defined on this form.

Enter 125,000 in the Maximum Billable field.

Note: The Maximum Billable field contains the amount to be encumbered. This is not necessary for external customers or unencumbered internal customers.

Uncheck the Encumber checkbox.

Note: You may only encumber projects for customers who’ve been defined as Financial Managers in FTMFMGR. External customers (as designated in FTMCUST) may not be defined as Financial Managers.

Click the NSF Override checkbox if you are encumbering funds and wish override budget checking.

Note: You may not have the authority to override the NSF condition. This authority is set on the User Profile Form (FOMPROF).

Perform a Next Block function.

Click the Complete checkbox.

Note: Projects must be marked as Complete before any charges or encumbrances may be posted.

Click the Save icon.

Click the Rollback icon.

Repeat steps 2-13 for the Annual Printing Office Charges for the History Dept. project (XXX02).

Example: For this project, use the FOAPALs below.

Fund – 1110 (Current Unrestricted)

Organization – 11005 (Dept of History)

Account – 7250 (Printing/Copying)

Program – 60 (Institutional Support)

Note: Unlike the previous project, this project will be encumbered, so you need to check the Encumber checkbox and enter a value in the Maximum Billable field.

Once complete, the only information that may be changed is the percentage. If you are encumbering funds, you must run the Posting program (FGRACTG).

Click the Save icon.

Click the Exit icon.

Recording Project Charges

Recording project charges

Now that you’ve defined your projects and assigned customers to them, you’re ready to post some actual charges against your project, and to have the system create a posting entry to debit and credit the FOAPAL distributions you specified in the preceding exercise.

There are three ways to record charges for a Cost Accounting project:

Direct Charge entry in the Cost Accounting Maintenance Form (FCAACCT).

Entry of invoices that reference completed projects (FAAINVE).

Entry of Journal Vouchers that reference completed projects (FGAJVCD, FGAJVCQ).

Banner Form

Use the Cost Accounting Maintenance Form (FCAACCT) to record direct charges to your project.

Steps

Follow the steps below to record direct charges to your project.

Access the Cost Accounting Maintenance Form (FCAACCT).

Enter the project code for Basement Waterproofing and Grading (XXX01) in the Project field.

Perform a Next Block function.

Note: Charges are entered by Cost Type, defined on the Rate Code by Cost Type/Organization Maintenance Form (FTMRTCT). The Employee number, inventory code, or Equipment Tag number may be required.

Example: Using the cost types defined previously, EQ will require an Equipment Tag number; MU will require an inventory code. Employee numbers will not be necessary since we are using standard rates.

Enter a date in the Transaction Date field.

Enter the following table of charges:

Cost Type	Employee Number	Inventory Code	Equipment Tag Number	Units
IC	Use the search icon to select the employee	PAINT-I	135
FN	120
EQ	SHOVEL	16
EQ	BACKHOE	8
MU	GRAVEL	60
MU	CEMENT	34

Click the Save icon.

Click the Rollback icon.

Enter the project code in the Project field for the Annual Printing Office Charges for the History Dept. project (XXX02).

Bill for 25,000 copies on 24-lb bond paper, the collating of 100 pages, and the binding of 250 books as follows:

Cost Type	Employee Number	Inventory Code	Equipment Tag Number	Units
CP	24#BOND	25000
CO	[Employee # created in Step 10 of Lesson 1]	100
EQ	250

Click the Save icon.

Click the Exit icon.

Standard invoice maintenance

All that is required for an invoice to post to your project is the entry of a valid (completed) project code in the Proj field of the accounting section of the Standard Invoice Maintenance Form (FAAINVE).

Banner form

Steps

Follow the steps below to enter a direct charge against your project using the Standard Invoice Maintenance Form (FAAINVE).

Access the Invoice Maintenance Form (FAAINVE).

Tab through the Document field (NEXT will appear on it’s own).

Select any valid vendor in the Vendor field.

Note: It is not necessary that the invoice vendor be the customer assigned to your project. No matter which vendor you specify, when you also note a project on this invoice, the expense will be charged to your project, and to the customer related to your project.

Perform a Next Block Function.

Enter today’s date in the Payment Due field.

Enter A1 in the Bank field.

Perform a Next Block function.

Enter Construction Costs in the Description field.

Enter 15000 in the Approved Amount field.

Perform a Next Block function.

Enter valid FOAPAL selections in the Fund, Orgn, Acct and Prog fields.

Note: It is not necessary that the FOAPAL you enter here be in any way related to either your income or charge FOAPALs as specified in FTMPROJ or FTMCHRG.

Enter XXX01 in the Proj field.

Enter 15000 in the Approved Accounting field.

Perform a Next Block function.

Select the Complete button.

Click the Exit icon.

Journal voucher quick entry

Use the Journal Voucher Quick Entry Form (FGAJVCQ) to make an entry to reference a completed project at your institution.

Banner form

Steps

Follow the steps below to make an entry to reference a completed project at your institution.

Access the Journal Voucher Quick Entry Form (FGAJVCQ).

Perform a Next Block function.

Leave the Transaction date as today.

Enter 1000.00 in the Document Total field.

Perform a Next Block function.

Tab through the Sequence field (the system will assign the Sequence number).

Enter JE16 in the Journal Type (Rule Code) field.

Enter appropriate FOAPAL values in the Fund, Organization, Account (expense), and Program fields (use any valid expense FOAPAL, not the FOAPAL you used for this project in FTMCHRG).

Enter XXX02 in the Project field.

Enter 500 in the Amount field.

Enter D in the D/C field.

Enter Departmental Printing Expense in the Description field.

Enter A1 in the Bank field.

Perform an Insert Record function.

Perform a Duplicate Record function.

Result: The last record is copied to this new record.

Tab through the Sequence field.

Enter the income FOAPAL that you entered for this project in the Fund, Organization, Account and Program fields (3100 12505 5940 60).

Enter C in the D/C field.

Perform a Next Block function.

Select the Complete button.

Click the Exit icon.

Note: These documents must post before you will be able to bill for them. The instructor will run the posting process, FGRACTG. You should then be able to review these charges in FCAACCT.

Billing Projects

Introduction

Run the Cost Accounting Billing Process (FCBBILL) to check for any unbilled charges existing for a project between specified dates. It will calculate the expense for these charges, based upon your rate specifications, and will create a Journal Voucher to post these expenses as a debit to your project charge FOAPAL (FTMCHRG) and a credit to your project income FOAPAL (FTMPROJ).

Before you run the Billing Process, you will need to enter parameters using the Batch Parameter Maintenance Form (FCAPARM). The Billing Process uses the parameters entered on this form to determine which projects are to be billed and for what dates.

Once you’ve run the Billing Process with the ‘Update specification, you can process your Cost Accounting postings by then running the Finance Interface Process (FGRTRNI) and checking for any errors in the Transaction Interface Error Report (FGRTRNR). Any errors you discover should be corrected in one of the Journal Voucher forms (FGAJVCD, FGAJVCQ), and then the journal must be posted by the posting process, FGRACTG.

Banner Form

The Batch Parameter Maintenance Form (FCAPARM)

Steps

Follow the steps below to use the Batch Parameter Maintenance Form to enter your parameters.

Access the Cost Accounting Batch Parameter Maintenance Form (FCAPARM).

Enter BILL in the Process Code field to specify the billing parameters.

Perform a Next Block function.

Enter your project number in the Project field or leave this field blank.

Note: This is an optional field. If left blank, it will bill all projects.

The Chart of Accounts, Organization, and Fiscal Year fields may be entered or left blank.

Note: If you have specified a project, you must leave these fields blank.

Enter a unique number in the Document Number field.

Notes: The Next function does not work here, nor does the form check to ensure that this document number is unique. You will encounter posting errors if your document number is not unique. One suggestion is to use CA for cost accounting and then the year, month, and day; for example, CA030120 would be for the billing run on 20-JAN-2003.

The Transaction Date, Start Date, and End Date are informational fields only, and the Last Activity Date field is not accessible. Accept the System populated dates.

Click the Update Database checkbox to create accounting transactions.

Note: Leaving this field blank will initiate a “dry run” of the Billing process without updating the ledgers.

The remaining indicators should be left blank.

Leave the Customer Address Type Codes fields blank.

Click the Save icon.

Click the Exit icon.

Note: The instructor will run the Cost Accounting Billing Process (FCBBILL). This process writes records to the Deferred Edit Process table (FGBTRNI). The instructor will also run the Interface Process (FGRTRNI), the Transaction Error Report (FGRTRNR), and the Posting Process (FGRACTG) to post these records to the Finance System. The Cost Accounting Billing Process (FCBBILL) will also update inventory and equipment usage records.

Review the output from the Billing Process.

Running Queries

Introduction

There are three queries provided with the Cost Accounting module. These queries display:

total project costs summarized by rate type

project totals by customer

customer costs for a project.

The Cost Accounting module also maintains records of material usage and equipment usage. And finally, the Cost Accounting module generates accounting transactions and documents.

You can view the results of the Billing process using these queries.

Banner form

Project Cost Totals Form (FCIPTOT)

Steps

Follow the steps below to display total project costs summarized by rate type.

Access the Project Cost Totals Form (FCIPTOT).

Enter XXX01 in the Project field.

Perform a Next Block function.

Result: The total costs for the Basement Waterproofing and Grading project should be $8,292.00. If cost figures do not appear on this form, consult your instructor.

Click the Rollback icon.

Repeat steps 2 and 3 to review project XXX02.

Result: The total cost for the Annual Printing Office Charges for History Dept project should be $7,550.00. If cost figures do not appear on this form, consult your instructor.

Click the Exit icon.

Banner form

The Project Cost Summary Form (FCIPSUM)

Steps

Follow the steps below to display project totals by customer.

Access the Project Cost Summary Form (FCIPSUM).

Enter XXX01 in the Project Number field.

Perform a Next Block function.

Scroll through the customers and view project totals for each by rate type.

Click the Exit icon.

Banner form

The Customer Cost Summary Form (FCICSUM)

Steps

Follow the steps below to view a summary of the customer costs for a project.

Access the Customer Cost Summary Form (FCICSUM).

Enter one of the customer ID numbers you have created in the Customer field or click on the Search icon to find it.

Perform a Next Block function.

Enter XXX01 in the Project Code field.

Perform a Next Block function.

Scroll through the total costs by rate type.

Click the Exit icon.

Banner form

The Equipment Tag Maintenance Form (FTMEQPT)

Steps

Follow the process below to query records of material and equipment usage.

Access the Equipment Tag Maintenance Form (FTMEQPT).

Note: The System will populate the Chart of Accounts field with the most recently used value (B).

Enter 12503 in the Organization field.

Enter Backhoe in the Equipment Tag Number field.

Perform a Next Block function.

Note: The total equipment usage hours will display in the Actual Machine Hours field at the bottom of the form.

Click the Rollback icon.

Repeat steps 2-4, to view additional equipment.

Click the Exit icon.

Banner form

The Inventory Code Maintenance Form (FTMINVT)

Steps

Follow these steps to complete the process.

Access the Inventory Code Maintenance Form (FTMINVT).

Note: the cursor defaults to the Inventory Code field automatically when one has just come from the Equipment Tag maintenance Form (FTMEQPT). Use the Shift + Tab keys to navigate back the Chart of Accounts and Organization fields.

The System will populate the Chart of Accounts field with the most recently used value (B).

Enter 12503 in the Organization field.

Enter Cement in the Inventory Code field.

Perform a Next Block function.

Note: The total units of material used will display in the Actual Units field at the bottom of the form.

Click the Rollback icon.

Repeat steps 2-5 to view additional inventory codes.

Click the Exit icon.

Creating External Rates

Introduction

The Cost Accounting module also permits you to define external rates in the External Rates Maintenance Form (FTMEXRT). These rates are discounts or surcharges that you wish the system to calculate for individual internal rate codes in the course of billing. These external rate codes are assigned per customer, using the Customer Rate Maintenance Form (FTMCRAT). Thus, if you want to apply a ten per cent discount for all copying jobs done for the Development Office, you can set this up so that this discount will automatically be assessed when billing is run for this department.

Banner form

The External Rates Maintenance Form (FTMEXRT)

Steps

Follow the steps below to define several external rates and apply them to one of your customers designated to a project.

Access the External Rate Maintenance Form (FTMEXRT).

Perform an Insert Record function.

Enter the following table values:

Note: The Adjusted Percent and Dollars field amounts represent the surcharge or discount expressed in either a percentage (which will be applied to internal rate) or dollar amount (which will be added to the internal rate on a per-unit basis).

External Rate	Short Description	Long Description	Adjusted Percent	Adjusted Dollars
-10	Discount	10% Discount	-10%
50%	Surcharge	50% Surcharge	50%
$5	$5 Fee	$5 Surcharge	5.00

Click the Save icon.

Click the Exit icon.

Banner form

The Project/Customer Rate Maintenance Form (FTMCRAT)

Steps

Follow these steps to complete the process.

Access the Project/Customer Rate Maintenance Form (FTMCRAT).

Enter XXX01 (Basement Waterproofing and Grading project) in the Project field.

Enter the customer associated with this project in the Customer field, or click the Search icon to find it.

Perform a Next Block function.

Enter the data shown in the following chart in the Rate Code, Inventory Code, Equipment Tag Number, and External Rate Code fields.

Note: The Internal Rate and External Rate fields are not enterable; they are display only.

The External rate will retain the old value until it is re-queried. The rate displaying in the External Rate field is the rate that will be charged to the customer for this project.

Rate Code	Inventory Code	Equipment Tag Number	Internal Rate	External Rate Code	External Rate
REG	13.75	50%	20.625
O/T	30	50%	45
SUPV	35	50%	52.5
ELEC	21	50%	31.5
HVAC	19	50%	28.5
PLUM	22.75	50%	34.125
EQPT	BACKHOE	125	$5	130
EQPT	GRADER	100	$5	105
EQPT	SHOVEL	250	-10%	255
MATL	BRICK	11.99	-10%	10.791
MATL	CEMENT	.99	-10%	.891
MATL	GRAVEL	3.59	-10%	3.231
MATL	LUMBER	.5	-10%	.45
MATL	PAINT-E	8.99	-10%	8.091
MATL	PAINT-I	5.79	-10%	5.211

Click the Save icon.

Click the Exit icon.

Access the Customer Charge Maintenance Form, FCAACCT.

Enter XXX01in the Project field.

Add cost type codes that will include some of the internal rates for which you’ve just added external rates.

Access the FCAPARM and set up parameters to run the Billing Process (FCBBILL).

Run the Billing Process (FCBBILL), and review your results.

Self Check

Directions

Use the information you have learned in this workbook to complete this self check activity.

Question 1

What is a customer?

Question 2

What is the difference between an internal and an external customer?

Question 3

Which forms are used to create and establish a customer?

Question 4

Which forms are used to define the FOAPALs that will be debited and credited for billed charges?

Question 5

Is a customer required for a project?

Question 6

If you choose to encumber the funds for a project, what FOAPAL will be encumbered?

Question 7

Name the three forms that can be used to record project charges.

Question 8

Which form would you use to record labor costs associated with a project?

Question 9

What cost type was used for the charges posted by invoice or journal voucher?

Question 10

Name the forms and processes, in the appropriate order, that are required for Cost Accounting Billing.

Question 11

What form would you query to determine what is currently billable for a project?

Question 12

If the FGRTRNR report indicates problems with your FCBBILL journal, where would you go to correct those problems?

Question 13

It is possible to allow different rates to be charged to different customers.

True or False

Question 14

What is the purpose of the External Rate Maintenance Form (FTMEXRT)?

Answer Key for Self Check

Question 1

What is a customer?

A customer is the entity that will be charged for the costs of this project.

Question 2

What is the difference between an internal and an external customer?

There is little practical difference, except that you can set up an internal customer as a Financial Manager (in FTMFMGR) and thus you can encumber the project Max Billable for this customer.

Question 3

Which forms are used to create and establish a customer?

The Identification Form (FOAIDEN) and The Customer Maintenance Form (FTMCUST). The Financial Manager Maintenance Form (FTMFMGR) may be used if you wish to encumber the funds for this project.

Question 4

Which forms are used to define the FOAPALs that will be debited and credited for billed charges?

FTMPROJ defines the income (credit) FOAPAL and FTMCHRG defines the charge (debit) FOAPAL.

Question 5

Is a customer required for a project?

Yes, some sort of customer ID must be entered on FTMCHRG.

Question 6

If you choose to encumber the funds for a project, what FOAPAL will be encumbered?

The FOAPAL(s) that you’ve entered on FTMCHRG will be encumbered for the Max Billable amount(s) that you’ve specified.

Question 7

Name the three forms that can be used to record project charges.

FCAACCT, FAAINVE, and FGAJVCD (or FGAJVCQ.)

Question 8

Which form would you use to record labor costs associated with a project?

You could use any of the three; though only FCAACCT will permit you to specify personnel and use cost type codes that include additional charges (like indirect labor, overhead, etc.). (Remember that invoices and journal vouchers will only charge using a Direct Charge ‘DC’ cost type).

Question 9

What cost type was used for the charges posted by invoice or journal voucher?

DC. You will define what rates are incorporated under this cost type in FTMRTCT.

Question 10

Name the forms and processes, in the appropriate order, that are required for Cost Accounting Billing.

FCAPARM, FCBBILL, FGRTRNI, FGRTRNR, FGRACTG.

Question 11

What form would you query to determine what is currently billable for a project?

FCAACCT will display any unbilled charges, whether entered directly on this form, or derived from posted invoices or journal vouchers.

Question 12

If the FGRTRNR report indicates problems with your FCBBILL journal, where would you go to correct those problems?

Problem journals will suspend with an incomplete status and can be viewed and corrected using either of the Journal Voucher entry forms – FGAJVCD, FGAJVCQ.

Question 13

It is possible to allow different rates to be charged to different customers.

True. External rate codes are created on the External Rate Code Maintenance Form (FTMEXRT). These codes are for surcharges (or discounts) which will be applied to different customers. For example, if certain customers are charged an additional 10%, a code may be created to automatically add 10% to Internal rate codes for those customers. The same may be done if a $25 service fee is charged to certain customers.

Question 14

What is the purpose of the External Rate Maintenance Form (FTMEXRT)?

Many enterprises will charge different rates to internal and external customers. This form is used to create codes specifying a surcharge (or a discount), which may then be associated with the Internal rate codes when billing external customers.

Appendix

Forms Job Aid

Form	Full Name	Use this Form to...
FAAINVE	Standard Invoice Maintenance Form	enables you to create invoice documents.
FCAACCT	Cost Accounting Maintenance Form	enter or change project charges by the unit. You can also add cost element usage information on this form.
FCAEMPL	Employee Maintenance Form	enter employees and maintain wage cost data for an employee attached to a cost accounting project.
FCAPARM	Batch Parameter Maintenance Form	specify parameters for cost accounting billing or automatic rate calculations.
FGAJVCQ	Journal Voucher Quick Entry Form	enter journal vouchers quickly.
FTMCHRG	Charge Maintenance Form	maintain customer accounting distribution data for each project.
FTMCLAS	Classification Maintenance Form	define and maintain a list of employee work classification codes used in automatic rate calculations for direct and indirect labor.
FTMCTYP	Cost Type Code Maintenance Form	create and maintain a cost type code which corresponds to a cost factor (e.g., direct labor). Use these cost types to enter changes on the Cost Accounting maintenance forms.
FTMCUST	Customer Maintenance Form	create, view, and maintain customer profile information.
FTMEQPT	Equipment Tag Maintenance Form	monitor equipment usage for cost accounting purposes.
FTMEXRT	External Rates Maintenance Form	verify and maintain a list of external rate codes to support both the Cost Accounting module and the Stores Inventory module.
FTMFMGR	Financial Manager Maintenance Form	view demographic data about each financial manager and to establish budgetary responsibility for grants, funds, and organizations.
FTMINRT	Internal Rate Code Maintenance Form	create and maintain valid internal rate cost codes (such as clerical or management labor) and assign a rate type code or cost factor (such as direct labor).
FTMINVT	Inventory Code Maintenance Form	monitor inventory costs and usage for a particular commodity. Organizations can share inventory, but the form maintains a separate record for each organization.
FTMIRTO	Organization/Rate Code Maintenance Form	assign rate codes to a specific organization. The rate type you define for the internal rate code determines whether you wish to require a user to enter the Inventory code or Equipment Tag number.
FTMPROJ	Project Maintenance Form	create and maintain project information and to assign accounting data.
FTMRRUL	Rate Type Rule Maintenance Form	set a system level for automatic rate calculations for each rate type.
FTMRTCT	Rate Code by Cost Type/Organization Maintenance Form	assign one or more internal rate codes to a specific cost type-organization combination.
FTMRTYP	Rate Type Code Maintenance Form	create and maintain a list of rate types for the development of internal rate codes.
FTMCSTO	Cost Type by Organization Form	assign cost types to a specific organization.

Terminology

Actual rate

The sum of the rate codes associated with a cost type in the Rate Code/Cost Type Maintenance Form (FTMRTCT).

Customer

An entity that will be charged for the costs of a project.

External rate

A discount or surcharge that the system calculates for internal rate codes in the billing process.