RCA are rolling out important, mandatory updates to how service centers and auxiliary units charge costs to sponsored projects and faculty funds, and how the corresponding revenue is recorded. These changes are the result of work by the Service Center Task Force and are designed to prevent transaction errors, eliminate duplicate entries, and significantly simplify your monthly and period-end reconciliation processes.
Please read this communication carefully, as these new protocols are effective immediately.
1. The Core Change: Two Distinct Accounting Paths
The biggest change involves separating transactions into two distinct methods based on where the cost is being charged (the destination).
Scenario A: Cost to a COA (General Ledger) String
- Destination: General Ledger (Chart of Accounts – COA)
- Method: FBDI (File-Based Data Import)
- Rule: The FBDI template must only be used for COA-COA transactions. This includes both cost transfers and the traditional cost/revenue accounting where the cost and the corresponding revenue are recorded as two separate lines within the COA.
Scenario B: Cost to a Project/Task (Sponsored Project or Faculty Fund)
- Destination: Project Portfolio Management (PPM – Project/Task)
- Method: New ADFdi (Application Desktop Integrator) Tool
- Rule: This is the new, all-in-one method. Using the dedicated ADFdi tool will now automatically:
- Generate the cost to the specified Project/Task.
- Simultaneously and automatically record the corresponding revenue to your service center or auxiliary unit.
- Crucial Note: FBDI templates can no longer be used to create GL costs or revenue relative to any PPM/Project transactions created (using 1087 account code). Any FBDI submission that attempts to record revenue or a cost transfer to a Project/Task (1087 account code) will be rejected by General Accounting.
The ADFdi method ensures that the cost and its corresponding revenue are successfully linked and posted together, which is the key to accurate and easy reconciliation.
2. Introducing the Pre-Submission Validation Tool
To ensure a smooth transition to the new ADFdi process (Scenario B), we’ve incorporated a powerful pre-submission validation tool directly into the template. Before you attempt to post a transaction, the tool will perform critical checks, including:
- Period of Performance: Verifies the transaction date is within the eligible project period.
- Task Number Viability: Confirms the Task number is valid for the selected Project or Faculty Fund.
- Project Status: Checks that the Project is Active and not Closed.
This validation will save your teams significant time by catching common errors before a failed posting attempt, allowing you to quickly communicate accurate information to your customers.
3. Training and Next Steps
We understand these are significant procedural changes.
An introductory training session will take place via zoom on October 15th at 11am.
[EDIT – see video recording of this session]
This change is going to primarily impact Service Centers (SEA, Chem Stockroom etc.) and Auxiliaries (Housing & Dining, Post Office etc.) but attendance is not limited. All are welcome.
Following this zoom training, there will also be an in person training session in Moody 205 (11.30-13.00) where we will do a walk through of the new ADFdi template, submission process, and validation tool. Details on this training will be added to this post, and communicated via the research-l listserve as soon as they are known.
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If you have an urgent need to use the new ADFdi template to generate a cost/revenue transaction in the next two weeks, please reach out to James Hayward (jth6) in the Controller’s Office for assistance. Otherwise, please save your questions for the scheduled training session.
Thank you for your cooperation as we implement these necessary controls for more accurate and efficient accounting at Rice.