Accounting 101 Module III : MCG Budgeting Basics Class III : AllocationsRevenue

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Accounting 101 Module III MCG Budgeting Basics
Class III Allocations/Revenue
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Purpose

• This session is designed to explain how MCG uses
  allocations.

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Objectives

• 1. Identify the three types of Allocations
• 2. Identify the four Grant Allocation Journals
• 3. Identify when Allocations are processed
• 4. Review the different Revenue and Accounts
  Receivable Codes
• 5. Review what type of grants are processed
  through allocations

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Agenda

• 1. Types of allocations
• 2. When allocations are run
• 3. Plant allocations
• 4. Auxiliary allocations
• 5. Grant allocations
• 4. Questions/Answers
• 5. Conclusion

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Three types of allocations

• Plant allocations
• Auxiliary administration allocations
• Grant allocations

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When allocations are run

• All allocations are run the first day of the
  following month.
• The only exception to that rule is Junes
  allocations, which are normally run no later than
  July 15th.

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Plant Allocations

• Only affects Auxiliary and Facilities Operation
  (Plant)
• of Plants expenses are charged to Auxiliary
• Three journals are created each month

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Auxiliary Administration Allocations

• Only affects Auxiliary
• All Auxiliary administration costs are charged to
  other Auxiliary departments
• Setup just like plant allocations
• Three journals are created each month

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Grant Allocations

• Generates journal entries that creates an
  accounts receivable and direct revenue equal to
  expenditures.
• Also generates journal entries that book indirect
  revenues equal to a defined percentage of
  expenditures.

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Four Types of Journals

• DR000000XX-Direct Revenue
• IR000000XX-Indirect Revenue
• IRC00000XX-MCGRI Indirect Revenue
• IX000000XX-Operating Indirect Expense

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Direct Revenue Journals

• Creates a receivable and revenue that equals
  total expenditures for the period.

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Direct Revenue Journals

• Receivable Accounts
• 124000 Receivables- Federal Funds
• 125002 Receivables- State Funds
• 127200 Receivables- Local Funds
• 127300 Receivables- Private Funds
• Deposits should be made to the appropriate
  receivable.

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Direct Revenue Journals

• Revenue Account Codes
• 421900 Federal Grants Contracts
• 422900 State Grants Contracts
• 423100 Local Grants Contracts
• 424100 Private Grants Contracts

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Indirect Revenue Journals

• Takes a of the expenses and creates a
  receivable and revenue in fund 15000.
• Uses the same Receivable Accounts codes as the
  Direct Revenue Journals .

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Indirect Revenue Journals

• Different revenue accounts are used.
• 472100 Indirect Cost Recovery-Federal
• 472200 Indirect Cost Recovery-State
• 472300 Indirect Cost Recovery-Local
• 472400 Indirect Cost Recovery-Private

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MCGRI Indirect Revenue Journals

• Does the same thing as the IR journals but for
  Medical College of Georgia Research Institute.
• This is the portion that MCGRI gets to keep. So
  it usually reduces the receivable and creates a
  contra revenue account
• 472101 IDC-MCGRI-Federal-Contra Revenue
• 472201 IDC-MCGRI-State-Contra Revenue
• 472301 IDC-MCGRI-Local-Contra Revenue
• 472401 IDC-MCGRI-Private-Contra Revenue

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Operating Indirect Expense Journals

• Mirrors the IR journals but uses the 951100 and
  951111 account codes
• 951100 Allocated OH-Spons Agrmnt-ID
• 951111 IDC Clearing

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Non-exchange grants

• Less than 1 of Grants are considered
  Non-exchange and do not go through allocations.
• MCG receives money, but is not providing a
  service.
• Ex MCGHI00105-MCGHI Margin Money.

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Non-exchange grants

• Revenue account codes used to receipt non
  exchange grants
• 485190 Federal Gifts-Non Exchange
• 485390 State Gifts-Non Exchange
• 485590 Local Gifts-Non Exchange
• 485790 Private Gifts-Non Exchange

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Questions/Answers
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Conclusion

• This concludes Module III Class III
• Allocations/Revenue
• If you have any questions, comments or problems
  with PeopleSoft Financials, please use the
  Functional Service Request (CRT). The link is
  found on the MCG PeopleSoft web page
  http//www.mcg.edu/peoplesoft. Click the
  Functional Service Request (CRT) link on the left
  of the page. Or the direct link is
  http//www.mcg.edu/peoplesoft/crt.
• Thank you