- How to Reconcile Conversion Balances by Fund and Financial Unit

Overview

This article will demonstrate how to reconcile beginning converted Fund balances in Oracle with ending balances in IFIS

Critical Concepts

Reconciliation may not be a direct process
It can take multiple steps because one or multiple IFIS values may map to one OFC value for each segment
A Financial Unit was assigned to each combination of IFIS Account and IFIS Fund for Asset and Liability accounts by looking at which Financial Unit was responsible for overseeing, reconciling or carrying the Account balance
This was done because Oracle tracks at the Entity, Financial Unit and Fund level for Accounts
IFIS did not track Organizations to Asset and Liability accounts
IFIS to Oracle has some major changes:

Balancing segments changes:
1. IFIS: Fund is the only balancing segment
2. OFC: Entity (primary) and Fund (secondary) balancing segments
3. A single account 100000 – Interfund Cash Account is used for all balancing entries
Asset and Liability tracking changes
1. IFIS: Tracks at the Fund level
2. Oracle: Tracks all accounts at the Entity, Financial Unit and Fund level
Sponsored Projects and Gift Revenue recording changes:
1. IFIS: Org 410045 was used to record Revenues generated from Sponsored Projects and Gift
2. Then OPAFS and Gift and Foundation do an Expense Budget allocation to department orgs for spending
3. Oracle: All Sponsored Project Revenues and Gift Revenues is recorded directly to Financial Units who carry those Sponsored Projects and Gifts so that Revenues and the matching Expenses will be tracked within the same Financial Units

From IFIS, total Revenues, Expenses, Transfers and prior year Fund balances at Fund and Org level was converted to OFC account 300000 at OFC Entity, Fund and Financial Unit level
Then, the Fund balances was allocated down to Project segment level in OFC
Encumbrances are not included in the Fund balance because they represent expenses that have not yet been incurred

Steps to Take

1. Determine IFIS Orgs that Roll into an OFC Financial Unit

One or more IFIS Orgs were converted to one OFC Financial Unit, therefore the reconciliation needs to account for all Orgs that translated to the Financial Unit balance

a. Go to the IFIS Org to OFC FinUnit Lookup Tool to determine all the Orgs that were mapped to an OFC Financial Unit at conversion

2. Determine IFIS Funds that Roll into an OFC Fund

Similar to Step 1 above, one or more IFIS Funds were converted to one OFC Fund

a. Go to the IFIS Fund to OFC Fund Lookup Tool to determine Fund conversion

3. Determine the Converted Balance in Oracle by Running the General Ledger Trial Balance Report

Refer to KBA How to Check a Fund Balance or Balance on Chart String Segments on how to run the report

a. For General Ledger Trial Balance Report, in From Period and To Period use Jul-20

b. In Basic Options dialog box, next to Account field, click on the Filter icon

c. In the Account dialog box, click Add Fields, select Fund and Financial Unit, then enter your Fund and Financial Unit

d. In the Report results, the Converted Balance will be under heading Net Beginning Balances and Total for Account Segment for Account 300000
See shaded area for the Converted Balance in Oracle and red boxed areas for the headings

4. Determine the Balance in IFIS via Financial Link by Running the Expanded Budget with Index Summaries Report

If the IFIS Orgs to OFC Financial Unit and IFIS Funds to OFC funds are more than a 1:1 conversion, the following steps will need to be done for each Fund and Financial Unit combination and then aggregated

a. Login to Financial Link
b. Select Reports > Summary Reports > Expanded Budget Summary by Index
c. Accounting Period will be 2012 – June 01, 2020 and Thru 2012 – Jun 30, 2020
d. Enter the IFIS Fund and IFIS Org and click Submit

5. On the Report results, review the Total under Overall results, see red arrows below

a. The summation of the Total under Balance thru 06/20 and Liens (Encumbrance thru 06/20) is the Converted Balance
b. In the example below, the total Converted Balance would be $233,643.23 (228,160.63 + 5,482.60) = $233.643.23

6. Repeat and add as needed for the many: 1 IFIS:OFC conversion

a. The report needs to be run for each unique IFIS Fund and IFIS Org combination
b. The total summation in IFIS will match the results in Step #3d above

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