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September 12, 2017
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In This Issue
FMS News
Changes to the KFS Distribution of Income and Expense (DI) & Renaming of the General Error Correction (GEC)
On January 1, 2018, technical edits will be placed on the KFS DI document to restrict certain transactions. These new document restrictions will require that all lines on the DI be in the same basic accounting category (asset to asset, liability to liability, income to income, expense to expense). For example, revenue that is recorded in object code 1804 (Income Clearing) can be distributed to 1800 (Other Income) and 1500 (Sales & Services). However, under the new edits, the system will NOT allow a user to move funds from 9400 (Deferred Revenue) to 1800 (Other Income).

This change is being implemented in order to minimize any unintended impact on the external financial statements, the university’s F&A proposal and federally restricted recharge activity. We realize that some transactions legitimately need to cross accounting categories. These transactions will now move to either the Auxiliary Voucher Recode or the General Error Correction (GEC) document. To more accurately reflect the functionality of the GEC document, on January 1, 2018, it will be renamed the General Accounting Adjustment document.
New: Required KFS Training
On Monday, December 4, 2017, FMS will release a new online training. The training, called Critical Data in KFS, will be required of all KFS users.

Beginning on December 4, all new KFS users will need to complete the training before their department can request KFS access on their behalf. Existing KFS users will have from Monday, December 4, 2017 until Monday, March 5, 2018 to complete the training. KFS users who have not completed the training by March 5 will have their KFS access revoked.

Moving forward, all KFS users will need to complete Critical Data in KFS on an annual basis to retain access to KFS. Users who do not complete the training annually will have their KFS access revoked.

Visit go . iu . edu / 1GFl for more information about the training, including a list of Frequently Asked Questions.
Update: Payroll Policies and Procedures
University Payroll recently reviewed and reorganized all payroll policies and payroll standard operating procedures (PSOPs). The goal of the review and reorganization was to make IU’s payroll policies and PSOPs as relevant, broad, clear, and concise as possible.

During the policy review, University Payroll consolidated 21 payroll policies into seven. These seven policies address the “what,” “why,” and “who” of payroll policy at IU. You may review the updated payroll policies on the University Policy website by visiting policies . iu . edu, then searching for “payroll”.

Policies that addressed the “how” of payroll at IU were converted into PSOPs. This resulted in six new PSOPs, which are listed on the University Payroll website at fms . iu . edu / payroll / policies - and - procedures/. The original PSOPs have also been reviewed and updated.

We encourage you to review these new policies and PSOPs using the links above. Please direct any comments or questions to Steve Miller at stgmill @ iu . edu
We Want to Hear From You!
The purpose of this newsletter is to share updates regarding policies and procedures, as well as helpful tips and tricks for working within the many areas of finance at Indiana University. We here at FMS want to ensure we’re doing our best to accomplish these goals. To that end, we’d like to hear from our readers. How could we make the newsletter more accessible? What are we doing well? To submit anonymous feedback, please visit go . iu .edu / tellfms. We look forward to hearing from you!
Use Internet Explorer to View Supporting Documentation
The Supporting Documentation tab is available to approvers of Payment Request (PREQ), Credit Memo (CM), and Disbursement Voucher (DV) e-docs in KFS. The Supporting Documentation tab contains an Invoice Image button. When clicked, this button opens a link to the OnBase image repository to show the document approver the corresponding supporting documentation for the payment or credit.

Supporting Documentation Tab

FMS Accounts Payable (AP) staff recommend viewing images through the KFS Supporting Documentation tab using Internet Explorer (IE) because IU actively supports OnBase coordination with IE upgrades. Upgrades from other browsers, such as Firefox and Chrome, are not supported, which adversely influences viewing supporting documentation. Therefore, always attempt to view supporting documentation in Internet Explorer before contacting FMS AP staff with issues.
Discounted Payments
Some vendors offer Indiana University a discounted billing amount if a payment is received within a specified timeframe. For example, IU may earn a 2% discount on the balance of an invoice if the invoice is paid within 10 days of the invoice date. When FMS Accounts Payable (AP) staff receive an invoice that indicates discount terms, they queue the invoice for 24-hour processing to facilitate prompt payment.

The department should promptly review and approve the payment request to ensure the discount is earned and paid within the specified timeframe. Remember, payments over $5,000 require department approval before disbursement. Diligent review of payment requests is necessary to meet payment term expectations. When payments are late, additional processing is required to pay the balance due, which is considered an unearned discount.
Has My Invoice Been Processed?
Where can I conveniently see all the payments and credits processed against my PO? Vendor customer service tells me the bills are paid. AP tells me IU has not yet processed the payment.

There is a View Payment History tab on every Purchasing Accounts Payable (PURAP) document in KFS. PURAP documents include: Requisitions (REQS), Purchase Orders (PO), Payment Requests (PREQ), and Credit Memos (CM). Open the View Payment History tab by clicking “show” to see the details of payment processing.

View Payment History Tab

In the example below (click to enlarge), two Guy Brown invoices have been processed and disbursed for $109.80 and $193.86, respectively. Additionally, one credit memo has been processed and disbursed for ($109.80). The net payment to date for PO# 1942186 is $193.86.

Some vendor customer service representatives believe that sending an invoice to IU means that IU has paid the purchase order. This is inaccurate. Sending the invoice and processing the invoice for payment are two separate events.
Non Student Accounts Receivable Helpful Hints
Hint #1: When researching lost invoice payments, Non Student Accounts Receivable (NSAR) staff can locate payments faster if you provide the following information on behalf of your customer:
  • Was the payment sent to IU as an ACH/Wire Transfer or as a physical check?
  • If the payment was sent as a physical check, when was the check mailed? Has it cleared?
    • If the check has cleared, provide NSAR with a copy of the endorsement on the back of the check. The endorsement will provide information about where the check was deposited and by whom.
    • If the check has not cleared, where did the customer mail the check? In many instances, customers omit the lockbox department number from the remittance address or use an inactive lockbox address in error. If this is the reason the check is lost, it is best for the customer to issue a stop payment and resend the check to the correct address.
Note: it is common for payments to take multiple weeks to reach the lockbox for processing when obtaining multiple signatures is required.

Hint #2: Make sure your customer’s vendor files list IU’s current information! Send a request to nonstdar @ iu . edu to have IU’s current W-9 and banking information sent securely to your customer via CRES or Slashtmp. Doing so will help prevent the delay of future payments.

Hint #3: When submitting new customer requests for approval to NSAR, include the following on all business customer records:
  1. Contact Name
  2. Phone number and/or email address
  3. Mailing address
FMS is Growing!
FMS has recently added two new roles to its ever-growing team. Please join us in congratulating our staff members!

Cassandra Rosenburgh has joined the University Payroll team as the Assistant Payroll Operations Manager. Cassie will work closely with Sandy McElhinney, Payroll Operations Manager, to provide additional support to campus and departmental payroll offices and staff. Cassie is new to IU, but has many years of experience in the private sector with payroll, payroll tax, and customer service. We are confident she will be a great asset to University Payroll and FMS as a whole. Welcome to IU, Cassie!

Kathy Cochard has accepted the position of Financial Analysis and Reporting Manager in our Financial Reporting group. Many of you may have worked with Kathy in her previous position, Auxiliary Accounting Manager. In her new role, Kathy will provide support in preparing the university’s financial statements, as well as working on larger scale accounting projects for the Controller and VPCFO. Kathy brings 30 years of accounting experience, half of which was acquired at IU, to her new position. Congratulations, Kathy!

FMS in the News
Why does IU need a tax department? Recently, Cassandra Franks, Director of University Tax Services, penned a short article for Inside IU regarding University Tax Services’ roles and responsibilities at the university. To read the article and learn more about University Tax, visit go . iu . edu / 1GOB
Tax Implications of International Hires
If your department has a new employee who is not a U.S. citizen, review the following:
  • Has your employee completed the FNIS questionnaire? All non-U.S. citizens employed by IU must complete the FNIS questionnaire so University Tax can determine if the employee is eligible for tax benefits, which may greatly reduce or even eliminate the employee’s tax withholdings. If your employee does not have access to FNIS, they may request access here: fms . iu . edu / tax / international / itq-password-request /
  • All international employees who receive wages or salary for services performed must have a social security number. Please refer to the Office of International Services’ website for more information: ois . iu . edu / living-working / employment / social-security . shtml
This and other information about the tax implications of hiring non-U.S. citizens can be found on University Tax’s website at: fms . iu . edu / tax / international / employment /

Please contact University Tax with any questions via email at taxpayer @ iu . edu
Employer-Provided Education
University Tax has finalized a new Tax Standard Operating Procedure (TSOP) to provide departments with guidance on when certain payments made by IU for an employee’s educational purposes are considered taxable income to the employee.

TSOP #3.06 pertains to education benefits, excluding the IU Tuition Benefit, and addresses considerations for both cash and non-cash payments. The TSOP outlines three steps departments should use to determine if an educational payment is taxable income to the employee. The three steps are outlined in the TSOP with a flowchart and substantiated by several examples clarifying the decision process.

TSOP #3.06 may be accessed from the Standard Operating Procedure section of the University Tax website, or directly at: go . iu. edu / 1GOC. Please contact University Tax via email at taxpayer @ iu . edu with any questions.
Events Calendar
Wed, Sept 13, 2017
University Finance Fundamentals - Accounts Payable
Poplars W183 and Online
Thu, Sept 14, 2017
Disbursement Voucher Special Considerations
Poplars W183
Tue, Sept 19, 2017
Kuali Time for Supervisors and Payroll Processors
Poplars W183
Thu, Sept 21, 2017
Payroll Essentials
Poplars W183
Tue, Oct 3, 2017
Financial Processing Basics 1
Poplars W183
View more events and register at fms . iu . edu / training »
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