Plant Indebtedness
Plant indebtedness entries for notes and bonds payable are similar in nature to the capitalization entries, with a few exceptions. The original plant indebtedness entries occur on liability object codes (a balance sheet item) and, because there are fewer classifications, the same object code is used to record the item in the plant fund. Whereas the capitalization entries add items to the balance sheet (set up assets), these entries move the liability from select fund groups to the plant fund.
If the Plant Indebtedness process is turned on, bond and note liability entries are created for transactions affecting the actuals (AC) Balance Type using an account with a specified sub-fund group and object code with a plant indebtedness-related object sub-type.
• Plant indebtedness entries book to the campus plant fund chart and account associated with the organization tied to the account on the original transaction.
• Transfer to Net Plant will be included in the transaction description of the entry occurring in the original account and the description of the entry occurring in the campus plant fund account is set to Generated Transfer from (chart and account number of original entry).
• Appropriate offsets to the fund balance object code are generated to balance the entries.
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