Fiscal Operations Manual
Section 400: Expenditures
See PaCS 202-004: Contract Signature Authority in the Procurement and Contract Services (PaCS) manual for personnel authorized to sign a contract on behalf of the University.
In Banner Finance, Purchase Orders and Invoices are called documents. Document Level accounting allows use of one or more accounting distributions, i.e. FOAPALs, to pay for one or more commodities as a percentage (or other distribution) of the total charge. Document Level accounting is more commonly used than Commodity Level accounting.
Commodity Level accounting allows assignment of one or more FOAPALs to each specific commodity. Commodity Level accounting might be used by a Dean’s office to purchase several items from one vendor for several different units. Commodity Level accounting must be used when the 40101 (capitalized equipment) account code is used so the information will feed into the fixed asset module of Banner properly.
A purchase order can be processed for each purchase greater than $5,000 that is made by the university and is not charged to an Auto Pay vendor. The Banner FIS Purchase Order (PO) specifies commodities ordered from a specific vendor, and the price, terms, and conditions of that order. Unit personnel or PaCS enters the PO using the FPAPURR screen in Banner. The entry includes accounting data that automatically creates needed encumbrances against the unit’s accounts. Purchase Orders of $25,000 or more are required to be processed through PaCS.
Information specific to equipment purchases may be found in PRO 202: Purchases.
Ship to Codes/Buyer Codes are maintained by the PaCS.
Encumbrances are automatically created when a Purchase Order is completed and approved in FIS Banner. The encumbrance is automatically liquidated when a regular pay invoice is completed and approved, referencing the Purchase Order number. If “F” Final is selected when paying, the PO is closed.
A purchase order is liquidated by referencing the PO number during payments. If for some reason the Purchase Order has not been completely liquidated by this process, a liquidating Journal Voucher must be created in FGAJVCD.
Manual encumbrances can include airfare, travel reimbursements, supplies, printing, GRA/GTA tuition and indirect costs. Use Banner form FGAENCB to make a manual encumbrance
Manual encumbrances are set up, maintained and liquidated by the Office of Post Award Administration (OPAA) for all sub-grants and subcontracts. See FIS 1106-09 Payment of Grants and Contracts Sub-Award Invoices with Encumbrance for processing subcontractor invoices with these encumbrances.
Any encumbrance set up on FGAENCB needs to be manually liquidated (or in some cases, readjusted) once the actual expense is incurred. This is done via a journal voucher on FGAJVCD – Journal Voucher Entry Form, and rule code 2LIQ. Any manual encumbrances remaining for subcontracts after the final payment to the vendor/subcontractor will be liquidated by OPAA.