Accounting Based Spending Transactions

Process Group/Policy Details

• Subject: Accounting Based Spending Transactions

• Process Group: Accounting Based Spending Transactions

• Title of Policy: Accounting Based Spending Transactions

• Effective Date: 07/01/2014

• Approved/Revision Date: 07/01/2014

• Approved by: State Controller

Process Group Description

• This process group includes Accounting Based Spending Transactions, which are non-commodity spending transactions to support internal/external purchases & reserve budget amounts. There are three transaction codes available. GAP is for processing pre-encumbrance. GAE is for processing encumbrance and GAX is for processing expenses/expenditures.

Rationale or background to policy:

• CORE provides flexibility for processing non-commodity based spending. The General Accounting Pre Encumbrance (GAP) and the General Accounting Encumbrance (GAE) transactions are available for pre encumbering or encumbering budget authority and for later internal or external purchases. The General Account Expense (GAX) is available for recording accounting based expenses/expenditures.

Policy Statement:

GA.PO.06 Accounting Based Spending Transactions

• Department shall use commodity based Procurement and Accounts Payable transactions to request, order, and request payment for goods and services at a commodity code level of detail.  In instances where commodity codes are unavailable, such as statutory distributions or transfers, settlements, or court awards, a department may use these transactions to obligate the budget. These obligations are liquidated using a GAX transaction.

Procedures:

GA.PR.06.1 Accounting Based Spending Transactions

• The Accounting Based Spending Transactions cannot reference a commodity-based transaction.  GAP and GAE transactions are used for reserve budget for internal purchase. The GAP/GAE/GAX transactions are used for external purchases.

• All ABS transactions have a header, a vendor, and an accounting line. There is no commodity section. When processed, the ABS transactions produce the posting line and journal posting entries just like the other accounting transactions.

• A GAP or GAE is used for pre-encumbering or encumbering funds and will have delivery information fields, billing, and shipping information fields. A GAE can reference and liquidate GAP. A GAX is used to record the expense/expenditure. A GAX can reference and liquidate GAP or GAE. Detail of how to use GAX transaction is discussed in AP.PO.02.

• Extended Description field contains up to 1,500 characters. Departments shall provide detailed description of what you intended to encumber/pre-encumber and why the funds are needed in this section.