Financial Services and Budget - Completing a Cost Corrections Request Form in Service Now

Purpose

This document provides faculty and staff guidance on how to complete a cost correction request form in Service Now. A cost correction is needed when a cost was incurred on an inappropriate accounting distribution and must be corrected after-the-fact at the source (in Oracle).

· A cost is represented as a COA expense, purchased asset, or a PPM project expenditure item.

· A distribution could be a COA combination or POETAF string. A mistake was made on the original transaction (e.g., use error) or new information was learned later (e.g., sponsor rejects a cost).

· An after-the-fact correction occurs when the cost has already been posted to the PPM project or has already been accounted to the GL.

Terminology

· Credit Account: A credit is a record in accounting entries that will either decrease an asset or expense account or increase a liability or equity account. For cost corrections we are decreasing the expense account.

· Debit Account: A debit is an accounting entry that creates a decrease a liability or equity account or increase an asset or expense account. For cost corrections we are increasing the expense account.

· Oracle Transactional Business Intelligence (OTBI) reporting: These reports provide real-time insight into business processes and are in the Oracle Central Finance Reporting Hub.

· PPM Dashboards: Metrics and reporting related to projects. PPM Dashboards include Sponsored Programs PI Dashboard and Programs Analysis, Capital Projects Management, IADF PI, Clinical Research PI, IADF Management, Clinical Research, Grants, Award Projects, and Sponsored Programs Dashboard Details and URA Office Reports.

· Project Number: A number that uniquely identifies each project.

· Each project is assigned a 3-letter prefix depending on the type of project.

· COA – Billed against the chart of accounts, not a project.

· USP – Sponsored projects and awards.

· CRS – Clinical Research Studies projects.

· UID – IADF projects, specifically Discretionary Funds.

· UIA – IADF projects, specifically Individual/Internal Awards.

· UFP – Facilities eBuilder project.

· SCP – UCMC shared project.

· FIT – Funds Flow and Intercompany Transactions.

· UCP – All other projects.

Keep in Mind

· This form is used to correct cost associated with a particular invoice or transaction in the Oracle Cloud system. This includes:

· Requesting a correction on any transaction which was originally created via an invoice/expense report in Oracle. This includes a Payables cost correction from Project to COA, COA to another COA, COA to Project, and Project to another Project.

· Requesting a correction on a PPM transaction. This includes moving a charge from COA to Project, Project to COA, or Project to another Project.

· Scenarios that are not considered cost corrections are:

· Transfers of funds (or revenue)

· See the Create a Journal Entry Knowledge Base Article for more information.

· Allocations and recharges/chargebacks

· See the Create a Chargeback Knowledge Base Article for more information.

· Prospective change orders

· See the Modifying a Requisition or Creating a Change Order in Oracle Knowledge Base Article for more information.

· Any transactions that occurred prior to July 1 and do not involve a project cannot be completed as a cost correction.

· Multiple invoices and/or invoice lines may be included in one request if the current and requested distributions (i.e. credit and debit accounts) are the same for all requested invoices and/or invoice lines. If the current and requested distributions are not consistent for those invoices and/or invoice lines, please submit separate cost correction requests so that each request has one current distribution and one requested distribution.

· Two Financial Accounts are required for this form:

· The first financial account to be added is the credit account and should reflect the original, incorrect COA/POETAF account distribution. This should indicate a NEGATIVE Amount (-xxx).

· The second financial account to be added is the debit account and should reflect the requested, correct COA/POETAF account distribution. This should indicate a POSITIVE Amount (+xxx), balancing the two rows.

· Payroll Expense Cost Corrections (PECC) are a separate process and handled through the payroll system, Workday. For more information about PECCs, please review the Initiating a Payroll Expense Cost Correction in Workday Knowledge Base Article.

Completing a Cost Corrections Request in Service Now

1. Navigate to the UChicago Services Portal and select the Financial Services & Budget tile.

2. Locate and select the tile labeled Cost Corrections Request.

3. Review the information under Cost Corrections Request and then select the Request This Service button on the right-hand side.

4. The following fields will auto-populate:

a. Who is submitting this form?

i. Auto-fills requestor’s name

b. What is the submitter’s organization?

i. Auto-fills requestor’s organization

c. Are you submitting this request on behalf of someone else?

i. Defaults to No. If request is being submitted on behalf of someone else, please change this to Yes. Two new fields labeled For whom is this request being placed? and What is the requestor’s organization? will appear, complete them accordingly.

5. If anyone should be copied on the request, please complete the Who should be copied on this request? field. If the person to be copied does not have a UChicago email address, checkmark the Specify non UChicago emails that should be copied on this request box and a new field will appear to enter the non-UChicago email address.

a. Confidentiality Note: Anyone copied on this request will be copied on all communications with the F&A Knowledge and Support Center. Carefully select the individuals who should be added. If you are requesting this service on behalf of someone else, the requestor will automatically be copied on this request.

6. Under Transaction Details, answer the below questions using the appropriate Oracle reporting. This includes, but is not limited to, PPM Dashboards and OTBI reporting.

a. What is the earliest Expenditure Item Date (date of original expenditure) in this request?

i. Enter date as YYYY-MM-DD format or use the Calendar icon on the right-side of the field to select the appropriate date.

b. Do you want to perform a Cost Correction on an Oracle transaction with an invoice number?

i. If Yes, an Invoice section/table will open up on the form. Select the Add button and complete the following fields:

1. Invoice Date

2. Invoice Number – This can be found in Oracle/Orbit. Utilize the Invoice Inquiry report in Orbit and filter by PO to locate the Invoice Number.

3. Invoice Line – This is the actual invoice line number from the invoice. For example, if an invoice has six lines and the cost correction is needed on line three from the invoice, enter three (3) into this field.

a. If the invoice is in a Foreign Currency checkmark the box below the Invoice Line field.

4. Invoice Line Amount – This is the dollar amount associated with an individual invoice line of a request. Cost corrections can have multiple invoice lines as long as the credit and debit financial accounts are the same therefore this field represents a single line item out of the overall cost correction. If only one invoice is added to the request, this field should match the Cost Correction Amount field. This field will differ from the Cost Correction Amount field when multiple invoice lines are added to a single request.

5. Cost Correction Amount – This is the total and overall dollar amount for the cost correction request as a whole. If multiple invoice lines are added to a request, this field represents the sum of all invoice lines combined. If only one invoice is added to the request, this field should match the Invoice Line Amount field.

a. This field will differ from the Invoice Line Amount field when multiple invoice lines are added to a single request.

ii. After all fields are complete, select Add to return to the request form.

1. REMINDER: Multiple invoices and/or invoice lines may be included in one request if the current and requested distributions (i.e. credit and debit accounts) are the same for all requested invoices and/or invoice lines. If the current and requested distributions are not consistent for those invoices and/or invoice lines, submit separate cost correction requests so that each request has one current distribution and one requested distribution.

7. Review the Financial Account Entry section to determine how to enter the current and requested distribution accounts. Entry of two financial accounts is required.

8. To add the first account distribution, under Financial Accounts, select the Add button. Add the credit account, which is the original/incorrect account distribution.

a. In the Add Row screen, enter an Amount. This will always be a negative number.

i. Input a Minus Sign (-) before the numeric value.

ii. Numeric value must be a whole number or contain two decimals.

b. Select Financial Account Type of COA or POETAF, depending on cost correction scenario, and complete the applicable fields.

i. Selection of COA populates and requires completion of the following fields: UC COA Entity, UC Organization, UC Account Number, UC Fund, and UC Purpose.

1. To enter UC COA Program, UC COA Activity, UC COA Site, UC COA Affiliate, and/or UC COA Future, checkmark the Additional COA Details box. These values will default to Unspecified if not changed.

2. Note: UC COA Entity and UC Organization may auto-populate with requestor’s information. Make sure to replace with information for cost correction.

ii. Selection of POETAF populates and requires completion of the following fields: Expenditure Item Date, UC POETAF Project, UC POETAF Expenditure Org, UC POETAF Expenditure Type, UC POETAF Task, UC POETAF Award, and UC POETAF Funding Source.

1. IMPORTANT: Expenditure Item Date may auto-fill with today’s date. More often than not the related expenditure is not today therefore enter the Expenditure Item Date of the original transaction.

iii. Optional: After adding financial account information, checkmark the Add to Favorite Financial Accounts box and/or add a Favorite Account Nickname.

1. Requestors with saved financial accounts will see a Use a Favorite Financial Account Checkbox and a Favorite Financial Account drop-down field at the top of the Add Row screen. Select a Financial Account to autofill COA or POETAF distributions.

c. After information is added, the Status field near the top of the page must reflect as Valid before selecting Add at the bottom right of the screen. An error message will result upon submission if Status is Incomplete or Invalid.

i. If Status is Incomplete or Invalid, review each field for completion and accuracy, correcting any errors. Specific things to look for include, but are not limited to, are making sure that:

1. Account(s) are active in Oracle

2. Segments added are a valid data combination in Oracle

3. Project Number is entered correctly and not Closed

4. Expenditure Item Date is within the Project & Task start and finish dates and within the date range of the Award.

d. Once Status reflects as Valid select Add at the bottom right of the screen.

9. To add the second account distribution, repeat Step 8 but enter the debit account, which is the requested/correct account distribution.

a. In the Add Row screen, always enter a positive Amount.

10. Once both financial accounts have been entered, use the Pencil icon or the Crossmark icon under the Actions column to edit or delete the financial row, respectively. To delete all rows, select the Remove All button.

11. Under the Justification section, answer the following questions:

a. How did the error occur?

b. Why is the expense appropriate for the account being charged (how does the cost benefit the project purpose)?

c. Why is the transfer beyond 90 days since the original charge was made?

i. Only visible if Expenditure Item Date from step 6 is more than 90 days ago.

12. Optional: Provide any supporting documentation for the cost correction request by selecting the Add attachments hyperlink in the bottom-right corner of the page.

13. After all fields have been completed, select the Submit button located in the middle-right side of the page.

14. Requests route for the appropriate approvals based on the second Financial Account’s information.

a. Requests containing a sponsored research project as the second Financial Account route to the Department Research Administrator followed by the Award Administrator.

b. Requests containing a clinical research project as the second Financial Account route to the Clinical Research Finance Manager.

c. Requests containing an Individual Award or Discretionary Fund project as the second Financial Account route to the IADF Project Manager.

d. Requests containing a capital project as the second Financial Account route to the Capital Projects Project Manager followed by the Capital Projects Central Administrator.

e. Requests containing a COA as the second Financial Account route to the Organization Financial Manager.

15. After approvals are gathered,

a. Any requests that include invoices created in Oracle will route to Payment Services.

b. Any requests that include transactions incurred on Project prior to July 1, will be routed to the Support Center from the F&A Knowledge and Operations Optimization department.

c. Any transactions that occurred prior to July 1 and do not involve a project cannot be completed as a cost correction.