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).
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.
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.
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.
The Research Foundation developed the following customized reports to assist campuses in monitoring and reconciling equipment purchases for inventory tracking:
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.
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.
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.
The reconciliation process involves the following:
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.
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
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.
For information on how to remove records so that they do not appear in future reports, see the section in this document on How To Purge Records from the Reconciliation Reports.
How to Purge Records from the Reconciliation Reports
When records need to be manually purged from the accounts payable system so that they do not appear in future reconciliation reports the following steps are required:
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.
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