Use of CHC Transaction

Process Group/Policy Details

• Subject:  Cost Accounting

• Process Group: CHC Transaction

• Title of Policy: CA_ Use of CHC Transaction

• Effective Date: 12/16/2014

• Approved/Revision Date: 12/16/2014

• Approved by: State Controller

Process Group Description 

• This process group includes the use of the CHC transaction by Colorado State Agencies.

Rationale or background to policy:

• Departments need to use the JVC transaction to correct grant issues, reclassify or redistribute grant costs or to draw additional Federal Financial Participation. The JVC transaction is the only JV that can process a transaction with a PROGRAM code that is tied to a front-end split (FES) Major Program (MJPRG). However, the JVC does not use FES automatically; rather the preparer must manually calculate the split and also need to know cost accounting coding such as MJPRG, Funding Profile, Funding Priority and Funding Line which are normally inferred on CORE transactions. These issues, along with the fact that the JVC will trigger reimbursement jobs depending on the coding uses, make this a very powerful transaction that is easily misused by even the most sophisticated users. The CHC transaction will mitigate most of these issues because it will automatically create the FES, saving the user from the peril of manual calculations. It also only requires the use of a PROGRAM code, thus limiting the need to know all of the background cost accounting coding.

Policy Statement:

CA.PO.06 CA_ Use of CHC Transaction

• State Departments often need to correct, reclassify or redistribute grant expenditures and the related reimbursement revenue. The CHC transaction will allow streamlined processing of these transactions while avoiding many of the limitations or dangers of JVC processing.

Procedure(s): Use of CHC Transaction- CA.PO.06.1

The CHC contains the following sections:

• 1. Transaction Header: The transaction header is to be populated for the required fields including: transaction name (60 characters), transaction description (60 characters), and the record date.

  • Extended Description: An extended description field with 1,500 characters is available to record a longer description.

  • 2. Accounting Line: The dollar amount, event type and coding string are entered on the Accounting line.

    • There are numerous event types available for the CHC that mirror the JVC event types. Departments should use the most appropriate event type to accomplish the objective of their transaction.

    • If a 1099 reportable OBJ is used, a vendor must be used. If not applicable to a particular vendor or if information is highly aggregated, a miscellaneous vendor should be used.

  • The CHC uses compressed accounting lines and does not have distinct debit and credit lines. Therefore, if the functionality of the JVC is being mimicked, the user should insert an accounting line as a negative amount to create a credit entry. For example, the CA01 event type will automatically offset vs. BSA 1100 – Cash. So a positive amount on Accounting Line 1 will function as a debit with an offset credit to cash in the posting line. The negative amount on Accounting Line 2 will function as a credit with an offsetting debit to cash on the posting line, netting the cash impact to zero.

• Allowable Event Types

  • Event Type    Description

  • CA01            Expense Allocation

  • GA01           Cash Expense Correction

  • XC01            Expense Allocation – Object to Asset

  • XG09            Expense Distribution

  • XG13            Paydate Shift

  • XG18           Paydate Shift Reversal

  • XG19   Expense Pre-paids

  • XG22   Cash Expense and Liability Correction