Rule Codes

A rule code is a four character code that tells Banner how to process a TOE/TOF into the ledger. Use the rule
codes listed below as you complete the Banner UCSC Journal Voucher Entry Form. Each rule code is described
in detail on the following pages.

Important: Only use one rule code per journal voucher.

 
Table 3: Rule Codes for JVs

NOTE
When journal vouchers are processed by the FAST office, the rule code should begin with a Z instead of an X.
For example, an XTOE journal processed by the FAST Office will use the rule code 'ZTOE'.

Expense Transfers of Restricted Rule Codes
Transfers Of Funds And Transfers Of Expenditures
When to Use a TOE Form
When to Use a TOF Form
Office of Record
Retention Periods
Current Unrestricted Funds
Non Payroll Expense Transfers
Non Payroll Expense Transfers of Inventorial Equipment
Non Payroll Expense Transfers to Restricted Funds
Non Payroll Expense Transfers Between Fiscal Years
Indirect Cost Calculations for Expenditures for Research Grants
GRIC and GRAR Example
GRRV and GRIR Example

Expense Transfers of Restricted Rule Codes

Rule codes have been established in Banner for decentralized entry of XTOE and XTOF adjustments. Separate rule codes have been established to facilitate selective approval routing to central accounting office staff for journal transactions for Inventorial Equipment transfers (XEQT), Construction In Progress expense transfers (XEPT), transactions requiring use of balance sheet accounts (XJVB), and allowable payroll expenses (activity code adjustments) (XPRA). FAST office can process any of these rule codes by replacing X with Z for each.

Transfers Of Funds And Transfers Of Expenditures

TOF
At the start of each fiscal year, annual budgets are established for campus programs and activities. These budgets, also known as appropriations, consist of funds allocated to operate various activities and programs for the fiscal year. Budgets may be allocated to pool account and activity code levels to provide benchmark amounts that are then used to monitor particular types of expenditures, such as Staff Salaries, and Supplies and Expenses.

The permanent budget is allocated to the pool budget accounts for each fund and organization. The budgets represent the planned expenditures in each major expenditure category for the current year. Unit managers may need to redistribute their budgets to achieve better expenditure controls. They may also need to make changes in the budget to reflect changes in their operations. On-line transfers of funds (TOFs) can be used to move budgets from the general pool budget accounts to other expenditure account codes or to unit defined activity codes. TOFs can also be used to transfer budgets to other organizations. TOFs cannot be used to transfer budgets between funding sources.

TOE
An expenditure results when a campus activity or program uses money for things like salaries, supplies, equipment, and services. Assigning a FOAPAL code to each expenditure classifies the expenditure to a particular program (organization code, e.g. Biology Instruction), type of expenditure (account code, e.g. Staff Salaries), and type of activity (activity code, e.g. Computer Support Staff). It also associates the expenditure to a particular fund source (fund code, e.g. General Funds). This coding allows the campus to produce financial reports to the public indicating how the campus has used its money and identifying the source of the money used.

Occasionally, mistakes are made classifying revenues and expenditures. Perhaps the wrong organization code was used or the account code was incorrect. Because of the campus need to accurately report its financial condition, corrections must be made to incorrectly coded revenues and expenditures that have posted to the ledger. These corrections are made through the Transfer of Expenditures (TOE) process.

When to Use a TOE Form

1. To move expenses from one fund, org, or account to another;
    
2. To add or change activity codes;
    
3. To distribute costs within a unit (example: redistributing a phone charge among various orgs);
    
4. To move a block of expenses on the ledger from one FOAPAL to another, provided the account code remains the same or within the same classification and the fund source is unrestricted.

When to Use a TOF Form

1. To move budget from one organization to another within the same funding source.
    
2. To redistribute budget from the pool budget account to expenditure account codes and/or activity codes.

Office of Record

A Department or Division that generates a document is the Office of Record for that document. Responsibilities for record keeping include organizing, maintaining, and retrieving the completed and posted document along with any required supporting documentation, such as internal records or logs of usage that support transfers.

Retention Periods

The retention period for an expense transfer journal for non-governmental contract and grant funds is five years after the end of the fiscal year in which it was produced.

The retention period for a budget transfer journal for non-governmental contract and grant funds is ten years after the end of the fiscal year in which it was produced.

Expense transfers and budget transfers for government contract and grant documents must be held for destruction according to approved government contract and grant retention schedules. Specific instructions for determining government contract and grant retention schedules may be obtained through Extramural Fund Accounting.

Current Unrestricted Funds

Non Payroll Expense Transfers

Once an expense entry has been posted in the operating ledger, it is appropriate to make adjustments only in the following situations:

• to correct an erroneous non-payroll expense recording when the original source document cited an incorrect FOAPAL code;
   
• to record a change in the decision made originally for the use of the good or service;
   
• to redistribute high numerical but small individual and/or minor charges (e.g. copy machine, telephone charges, or mailing charges) which are billed to a departmental FOAPAL but apply to other FOAPALs under the jurisdiction of the department;
   
• to transfer expenses between funds to eliminate deficits within unrestricted funds or from restricted to unrestricted funds.

Non Payroll Expense Transfers of Inventorial Equipment

Inventorial equipment must be transferred as a line item entry using the original source document as the document reference number. The document reference number will be the purchase order number in almost all cases.

Non Payroll Expense Transfers to Restricted Funds

Non payroll expense transfers can be made to restricted funds, provided the restrictions allow for the type of expense being transferred.

Non Payroll Expense Transfers Between Fiscal Years

Non payroll expense transfers can not be made between fiscal years.

Indirect Cost Calculations for Expenditures for Research Grants

Banner uses certain fund codes to represent indirect costs associated with research grants. These codes are defined below, for your information. They are not typically entered by users. They may be seen as users enter their JVs. Screenshots of these codes are shown after their definitions.

GRIC

GRIC is the Banner-generated rule code representing the indirect charge (debit) that will be incurred with any expenditure charged to the operating ledger on a research fund. It is a negotiated rate with the funding agency. Each research fund will have an indirect cost basis which defines what expenditures are subject to this charge, and what expenditures are exempt from the charge. Each fund will also include the negotiated rate, as well as an account code into which the charges are accrued within that fund. This is the debit side of the charge, which is always account code 009150. The credit side of the entry is the campus' overhead pool FOAPAL.

GRIR

GRIR is the Banner-generated rule code representing an indirect cost recovery. This is the credit side of the indirect cost charge against expenditures to the operating ledger against research funds. GRIC & GRIR go hand in hand.

GRRV

GRRV is the automatic revenue accrual that will post each time an expenditure hits the operating ledger against a research fund. The REVENUE account field must be populated on FTMFUND form for this to occur. (Credit)

GRAR

GRAR is the automatic unbilled accrual that will post to the general ledger each time an expenditure is charged against a research fund. The UNBILLED RECEIVABLE account field must be populated on the FTMFUND form for this to occur. (Debit)

GRIC and GRAR Example

GRRV and GRIR Example

The form FTMFUND may be used to view GRAV and GRAR revenue accounts. To perform a query go to FTMFUND, tab to the FUND field, enter the appropriate fund code and then enter [F8] Execute Query. Type [control q], click on in the toolbar or Right Click-Exit when review is complete.

The form FRMFUND may be used to view GRIC and GRIR account details. To perform a query go to FRMFUND, enter [F7] Enter Query, tab to the FUND field, enter the appropriate fund code and then enter [F8] Execute Query. Type [control q], click on in the toolbar or Right Click-Exit when your review is complete.