Overview

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This article describes common scenarios that cause variances on the 773046 clearing account, how to review balances on the 773046 summary report, and steps that can be taken to correct issues. 

Essential Information

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• The 773046 account is a PPM clearing account and is treated like a balance sheet account which should always net to zero. There are two primary ways that this account gets out of balance:
  • Recharge Activity
  • Costed and Accounted Entries
• The 773046 Account Reconciliation report on the Central Office Exceptions Panorama is a tool created to assist with reconciling this clearing account.

Next Steps

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Common Scenarios

• Recharge Operations: Billing and internal income should always net to zero and are generally processed in the same batch.
  • Commonly used recharge accounts/expenditure types are:
    1. 770000 + “Preferred Recharge Facility Name” – Debit
       1. Expense account to record the charge from a recharge facility providing the goods or services; normally has a debit balance.
    2. 775000 – Recharge Income Self Support Activities – Credit
       1. Account to record Internal income received from providing goods and services to Department/UC Users; normally has a credit balance.
  • Below is an example of how a recharge entry should look – when processed correctly the 773046 account will net out to zero.
  • Recharge operation A records recharge expense to their customer on project 1001042 to account 770000.
  • Recharge operation A records recharge income on their project 2022345 to account 775000.
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• Costed and Accounted Transactions
  • Transactions created outside of PPM and OFC which are imported into the GL via journal entry. In order to have it represented in PPM without having it duplicated in the GL, the imported transaction is designated as “costed and accounted”
    • Cost Transfers
      • Costed and Accounted transactions that are transferred from one project to another can cause variances on the 773046 account where the original transaction had incorrect chart strings on the transaction. This typically happens when the reversing transaction uses a clearing account other than 773046 on the raw cost clearing line and the new transaction uses the 773046 account.
      • This issue is corrected by identifying the reversing transaction and overriding the raw cost clearing line with the 773046 chart string. Submit a Services and Support ticket to request override the chart string. The central office that originated the cost will be able to correct it.
    • Recalculate Raw Costs
      • Similar to the Cost Transfers issue above, recalculating costs on costed and accounted transactions can cause variances on the 773046 account. The recalculation process creates accounting and normally would net to zero, but if the original transaction had incorrect chart strings, there may be an impact on the 773046 account, creating an imbalance. Since these are Costed and Accounted transactions the recalculation creates duplicate GL entries.
      • This issue is corrected by identifying the recalculated transaction and overriding the raw cost chart string to match the 773046 account string used on the raw cost clearing line. Submit a services and support ticket to request override the chart string.
• One sided or mismatched Project Cost (MCI) batches
  • There are instances where recharge costs are uploaded to OFC and either the expense or revenue side of the entry fail to upload. For example, a project where the expenses are intended to be posted could have the chargeable flag set to no causing the expense to fail posting. The recharge operation should then correct that entry, but if instead the cost is deleted from unprocessed costs, it can cause a variance.
  • The recharge operation should submit through their system the correcting entries. In worst case scenarios, a manual MCI file should be created and uploaded to load the missing side of the recharge transaction. Submit a services and support ticket. See Troubleshooting section here: KB0033521, How to Process Transactions in the RMP Recharge Application.
• Unprocessed Costs
  • There could be unprocessed costs sitting in PPM causing one side of the 773046 entry to remain unposted. These should be resolved through the PPM module. See Troubleshooting section here: KB0033521, How to Process Transactions in the RMP Recharge Application.
• Duplicate Entries
  • Duplicate entries may have been posted in error
    • Submit reversing file (file with the signs flipped)
    • These may be able to be manually reversed directly in PPM once the duplicate transactions have been identified. Submit a services and support ticket to request the reversal of these transactions for a single transaction or a full batch.

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How to Identify your transactions on the 773046 Summary Report

• Open the Central Office Exceptions Panorama on bah.ucsd.edu under Budget & Finance.
• Click on the 773046 Account Reconciliation report under Additional Exception Reports.
• Click on Summary by Transaction Source.
• Click on the hyperlink from the Transaction Source list to drill down into the details.
• Click on the hyperlink from the Amount column to drill down further by User Expenditure Batch.
• The report is built to clear by Source and expenditure batch, so if you have corrections in a separate transaction source or batch, you will need to manually track and reconcile that, it will not drop off the report.