Suspense Accounts Procedure
1.0 PURPOSE
The purpose of this procedure is to document the procedure used by the Office of Finance to track and reconcile the suspense account in FRS.
2.0 SCOPE
This document describes the process of tracking all transactions that are posted to the suspense account and ensuring that they are identified and cleared in a timely manner.
3.0 DEFINITIONS
- Suspense Account
- The Suspense Account is the account in FRS designated for all transactions that were entered into FRS with invalid account information.
- Suspense Number
- Six digit number found on FBD016 which uniquely identifies each item in the suspense accounts. The suspense number is always preceded by an S.
4.0 PROCEDURES
All items added to the suspense account are found on report FRD4003 (FBD016) - Daily Suspense Update Report. The 'Daily Suspense Update Report' gives the details of each transaction such as debit/credit account, transaction code, date posted, description and reason why the transaction put in suspense. The most common circumstances for transactions to be posted to the suspense account include the use of an invalid six-digit account number, four-digit subcode or an account previously frozen.
The daily balance of the suspense account is monitored through the file, Daily Suspense Balance (by month).xls. This file is kept to monitor and investigate any unusual balances in the suspense account over a given time. Any relevant information regarding the balances is kept in the notes section of the file.
The originator of the transaction is identified by the batch ID, which is then cross-referenced with the batch ID listing available on the Office of Finance website, found at http://finance.utdallas.edu/systems/batch-ids.html. The FRS Administrator contacts the originator via email with the relevant transaction details and requests the correct account information. If no response is received within 24 to 48 hours, the request is resent with a copy to the Assistant Controller in the Office of Finance.
Once the correct account information has been received by the FRS Administrator, a batch is created in order to correct the transaction in FRS (remove from the suspense account and post to the correct account). A batch ID is assigned by the Office of Finance for the FRS batch used to enter all of correcting transactions. No corrections are made by the originator of the transactions.
Screen 30 (Open/Close FA Session) in FRS opens the session, and the FRS Administrator enters the batch ID, date, description and session status (O for open, C for closed). Next, on Screen 17 (Suspense Corrections), the FRS Administrator enters the suspense number and the transaction details are shown. The highlighted line shows the account that contains the error and the FRS Administrator enters the corrected account information on that line. If the account is accepted, the message "Transaction Cleared from Suspense" appears at the top of the screen. If the new account is invalid as well, the FRS Administrator contacts the originator of the account again for clarification.
Once a batch is ready to be closed, the FRS Administrator uses Screen 30 (Open/Close FA Session) and changes the session status from O (for open) to C (for closed). Following the overnight update, the Office of Finance receives a posting sheet confirming that the changes are reflected in the system. This posting sheet is reviewed by the FRS Administrator and attached to any supporting documentation received from the end users and filed.
The procedures described above are also performed during month-end closing and year-end closing processes. These procedures are integrated in the month-end closing and year-end closing checklists to ensure the suspense account is monitored and cleared on a timely fashion throughout the accounting cycle closing process.
5.0 RESPONSIBILITIES
The FRS System Administrator is responsible for monitoring the suspense account daily and notifying any users of suspended transactions in order for the account to be clear for month end processing.
The FRS System Administrator is responsible for the timely and accurate clearing of the suspense account.
6.0 REFERENCES & ATTACHMENTS
- Daily Suspense Balance (by month).xls. Electronically stored on the shared drive.
- Daily Suspense Account Listing (FBD016)
- FRS Screen 017: Suspense corrections.
Last Updated: February 17, 2012
