RE: [IUG] Negative Encumbrances

["Seeman, Corey" <cseeman at bus dot umich dot edu>]

Hi Peggy -- This appears to be Method Two Financial Close.  This is
where there are two sets of funds.  One for this year's orders and one
for all previous years.  So when the items that are not received yet get
paid, they will be taken out of last year's funds.  Insofar as the two
problems, I might be able to help.

First problem.  The reserve fund shows up in the current year's
financial reports.  This should be easy to fix.  You control what funds
show up in the financial reports.  That means that you can add or
subtract the funds as you see fit.  It would be good to know where these
are going to, so it might be nice to create a separate report that is
just these reserve funds.  You can have a report build with just one
fund.  While it might not be super useful, it will be nice to have it
show up in the list of reports. If it shows up in its own category in a
general report, then it will add its values to the grand total on the
bottom of the report and that would not be good.  The only benefit to
doing all this work is that your governing body is saying that these
expenditures will not count against the current annual budget.

Second problem.  Check out the users manual Page # 106035 (Changing
Funds in Orders in Fiscal Close (Method 2)) This should be able to
clarify the process for your system.   

Hope this helps.

Best -- Corey


Corey Seeman

Director
Kresge Business Administration Library
Stephen M. Ross School of Business
University of Michigan
701 Tappan Street, K3330
Ann Arbor, Michigan 48109-1234
(734) 764-9969
Cell Phone (734) 717-9734
Fax (734) 764-3839
cseeman at umich dot edu 

http://www.bus.umich.edu/kresgelibrary/
http://www-personal.umich.edu/~cseeman/index.html  
-----Original Message-----
From: innopac-bounces at innopacusers dot org
[mailto:innopac-bounces at innopacusers dot org] On Behalf Of Peggy Sisselman
Sent: Friday, December 22, 2006 12:36 PM
To: IUG INNOPAC List
Subject: RE: [IUG] Negative Encumbrances

What we do is create a new fund, for example next week we'll create
"res07".
Before we do the fiscal close, all encumbered order records get their
fund
codes changed to "rese07."  Anything received and invoiced in 2007
(ordered,
encumbered in 2006) will come out of that fund.

The two problems are 1) The reserve fund shows up as a fund in the
current
year's financial reports, so the totals don't completely reflect the
current
year, and 2) If I remember correctly, I don't think fund codes can be
changed by our consortium from a created list, but the fund code in each
record has to be changed individually.

Does anyone have any other ideas?  I'm going to go back and scour the
manual
again, but just wondering what other people are doing.

Thanks.

Peggy
-----Original Message-----
From: innopac-bounces at innopacusers dot org
[mailto:innopac-bounces at innopacusers dot org]On Behalf Of Frances Dodd
Sent: Wednesday, December 20, 2006 8:31 PM
To: IUG INNOPAC List
Subject: Re: [IUG] Negative Encumbrances


Hi Sue,

It is exactly how our library operates:
We use fiscal year closing method 1.  And we do
not cancel items at the end of a fiscal year; we receive and invoice
them
whenever they arrive.

But we also carry over encumbrances. We are bringing the previous
encumberances forward into the new fiscal year (also per User Manual
Page # 106036 step 6).
No more negative encumbrances! :-)

Frances Dodd, Technical Services Librarian
W.A.C. Bennett Library, Simon Fraser University
8888 University Drive, Burnaby, B.C.  V5A 1S6  Canada
Email: fdodd at sfu dot ca / Tel: (604) 268-7325 / Fax: (604) 268-6579

At 01:43 PM 19/12/2006, you wrote:
>Yes, we have experienced negative encumberances both in Millennium
silver
>and in the 2005 release.  We use fiscal year closing method 1.  And we
do
>not cancel items at the end of a fiscal year; we receive and invoice
them
>whenever they arrive.
>
>I contacted the help desk.  Acquisitions support said it is the result
of
>ordering an item in a previous fiscal year and then receiving and
>invoicing it in this fiscal year.  I have looked carefully at our data,
>and in our case I find that is the usual reason for the negative
>encumberances.
>
>Since it is already occuring in this fiscal year, your best choice is
to
>view the fund activity and then make an adjustment any time you receive
>and expense titles which were ordered in previous years.  But the
amount
>to adjust is the estimated price, not the amount you expense.  You have
to
>track this closely, or the figures will be wrong.  I generally check
the
>funds toward the end of the month, and make any adjustments before
>printing the monthly reports.
>
>The help desk also suggested that when we close out our fiscal year, we
>can look at the reports and put the amount still encumbered into the
new
>fiscal year encumberances column.  We are still thinking about whether
we
>want to do this.  Our fiscal year runs from July 1 through June 30, so
we
>have time to decide whether we will go in this direction.
>
>I would be interested in knowing if other sites are bringing the
previous
>encumberances forward into the new fiscal year.  And whether this
causes
>other problems...
>
>Sue Whitehead,
>Systems Librarian/Archivist
>Biola University
>sue dot whitehead at biola dot edu
>
>
>IUG INNOPAC List <innopac at innopacusers dot org> on Tuesday, December 19,
2006
>at 10:31 AM -0800 wrote:
>Hello-
>      Have any of you experienced any of your funds showing negative
>encumbrances?  If so, how did you resolve the problem?
>
>Thanks, kathleen
>
>Kathleen Olsen
>Section Supervisor
>Selection & Order Dept.
>King County Library System
>960 Newport Way NW
>Issaquah, WA  98027
>(425)369-3368
>ksolsen at kcls dot org
>FAX (425)369-3332
>www.kcls.org
>
>
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