Property Reconciliation

Purpose

This document describes the process for reconciling information in the Research Foundation (RF) Oracle accounts payable module and the SUNY Construction Fund Property Control System (PCS).

Background

The Office of Management Budget Circular A-110 specifies that an inventory of federal property must be kept. It further states that, "Any differences between quantities determined by the physical inspection and those shown in the accounting records shall be investigated to determine the causes of the differences." The Research Foundation utilizes the SUNY Property Control System (PCS) to track assets. The RF's reconciliation process between the Oracle accounts payable (AP) system and the PCS helps to provide the investigative control by identifying assets having records on only one system or having differing cost on the two systems. It provides this control for federal property and property acquired from nonfederal sponsors.

Definitions

The term "reconciliation" refers to the process of bringing information on the Oracle accounts payable system and PCS database into accord within acceptable limits or documenting differences that fall outside the limits. "Purging" refers to program and manual procedures for removing assets from the reconciliation reports.

Note: The terms equipment, property, and assets are used interchangeably in this document.

Reconciliation Rules

Equipment costing $5,000 or more must be reconciled. Locations must also reconcile items below $5,000 when the sponsor requires a lower equipment threshold or when the location has established a lower threshold for inventory purposes.

To reconcile a property asset its cost data in the accounts payable system and PCS must not differ by more than $500. In general, it should be possible to reconcile items to the $500 level or below. The Research Foundation has developed customized reports to assist campuses in monitoring and reconciling equipment purchases for inventory tracking. Refer to the Reconciliations Reports section of this procedure for more information on the reports.

To reconcile items in a timely manner, items should be reviewed and reconciled within 90 days of the payment date.

Reconciliation Reports

The Research Foundation developed the following customized reports to assist campuses in monitoring and reconciling equipment purchases for inventory tracking:


RF Property Purchase Order Reconciliation Report

The Research Foundation performs an AP/PCS reconciliation interface monthly by accessing PCS records maintained by the SUCF and AP records maintained by the Research Foundation. The interface process compares cost, PO number and award number for RF asset records in the PCS (identified by a Fund Code of “6”) with similar information in the RF Oracle AP module for paid purchase order expenditures or purchase order invoice adjustments with expenditures types “equipment” and “supplies below threshold equipment”. Report is produced from this interface process.


RF Property Direct Payment Invoices/Adjustments Report

This report identifies direct invoice payments and invoice adjustments made to expenditure types "equipment" and "supplies below threshold equipment." The report only lists invoice distribution amounts from the accounts payable module that have an "approved status" and a payment date posted in the system. These payments and adjustments are not processed against a purchase order in the RF Oracle business system. There is no interface with the PCS.

For more information on the reconciliation reports, refer to Reports/Queries under Property Management in EPSS.

Reconciliation of Cost Data

The reconciliation of cost data is made by joint effort. Operating locations must establish a process to ensure that records are reviewed, reconciled, and purged from the reconciliation reports in a timely manner deemed to be within 90 days of the payment date. Generally, PCS data is adjusted by the property control office and AP data is adjusted by the accounts payable office. Thus, it is critical that a system of communication is established between the two areas to facilitate the process.


Elements of the Reconciliation Process

The reconciliation process involves the following:

  1. Reviewing the reconciliation reports.
  2. Checking accounts payable and property control documentation for each individual asset and making appropriate reconciliation adjustments
    to the records in the AP module and PCS.
  3. Manually purging records from the reconciliation reports when necessary.
  4. Documenting actions taken.

Rules for Purging Records


RF Property Purchase Order Reconciliation Report

If the cost differences between the award amount and the PCS is greater than $500, the asset may be purged from the report if it’s determined the asset is appropriately recorded even though a cost difference exists or records for the asset only exist on one system. If the difference can be documented and if the situation does not contradict sponsor and/or Research Foundation Guidelines the asset may be purged. Note: In some instances supply type items are inadvertently charged to equipment expenditure types. If this should occur an invoice adjustment should be processed to transfer the supply cost to the correct expenditure type.


RF Property Direct Payment Invoices/Adjustments Report

This report does not interface with the PCS and thus requires all entries to be manually purged from the report after they are reviewed.

Records may be purged if

  1. In the RF Oracle AP module using the AP Administrator responsibility, enter a "Y" in the flexfield under PCS Reconciled on the Invoice
    Distribution window.
  2. Save the transaction.

    The "Y" indicates "Yes" - the item has been reconciled with the PCS. Refer to the "Property Reconciliation" work instruction in EPSS under Accounts Payable => Course => Modifying Invoices and Special Processes.

Change History

 

 

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