A general budget report provides a financial summary or overview of a particular funding source, but sometimes administrators and Principal Investigators (PI)/Research Personnel need to see the detailed transactions. The transaction breakdown report is the perfect solution. Click here for a sample transaction breakdown report.
The transaction breakdown report lists dates; vendors; reference numbers; purchase order numbers; and descriptive information for individual purchasing transactions, payroll charges, journal entries, budget adjustments, etc. Transactions are grouped and sorted by expense category and information displayed includes amount budgeted, encumbered, and expensed, as well as the balance. The transaction report is divided into two different sections: a header and transaction detail.
Transaction Breakdown Report Header
The transaction breakdown report header identifies the grant or funding source detailed by the report. It includes information such as the:
- General ledger or project number
- Object code (number identifying an expense category such as salaries, supplies, travel, etc.)
- Object code description
The transaction detail is the most integral part of the report. It includes:
- The beginning budget for each expense category
- Encumbrances and expenditures for each individual transaction
- The total budgeted, encumbered, and expensed for each category
- Balance available for each expense category
- Other identifiers for each transaction such as vendor, ID code, reference type, reference numbers, and P.O. number
Further Analysis of Transaction Breakdown Reports
Transaction breakdown reports generated by a grant management system are great tools to use in the reconciliation and compliance processes, and they also streamline the accounting and reporting procedures. They allow the grant administrator to:
- Track detailed budget, encumbrance, and expense transactions
- Reconcile and verify purchases are allowable
- Incorporate user-defined codes for internal management needs
- Use numerous sorting and grouping options
Track Transactions & Monitor Balances
The transaction breakdown report provides each transaction listed for an individual account or project. The transactions are then categorized by expense category or code, which allows the user to easily find a transaction. The transaction report also allows the user to identify whether or not a transaction has been reconciled and if so, when. The breakdown report includes the beginning budget balance for the expense category and tracks individual transaction encumbrances and expenses. The report also includes the total available balance for each expense category.
The breakdown report is often used to reconcile transactions to the institution’s general ledger (GL). Reconciling consists of verifying that transactions are charged appropriately to the account, the expense category, the amounts are correct, and purchases are allowed on the account. Reconciliations are typically done once a month, some institutions reconcile weekly, and few reconcile daily. By reviewing the transaction report, administrators are easily able to verify whether or not a transaction is allowable on that particular account or project.
Incorporate Other Identifiers and User-Defined Codes
The transaction breakdown report allows the institution to create user-defined codes. Some of these codes include ID, Reference Type (RT) codes and the Purchase Order number as highlighted in the report. These codes allow the user to categorize transactions. The ID codes are used to track expenditures that may cross object codes and accounts. For example, if a user wanted to track copier expenses that may cross multiple accounts or object codes, an ID code can be used to track this expenditure. Reference Type codes allow the user to categorize transactions in the same manner as ID codes and provide another level of grouping and reporting. The purchase order number can also help to easily identify particular transactions within the report. The incorporation of these codes allows the user to easily identify another aspect of the transaction for its internal management needs.
Use Sorting and Grouping Options
The transaction report provides numerous sorting and grouping options for the administrator or PI/Research Personnel. The report provides the ability to sort or group transactions by expense category, reference numbers, ID code, transaction date, reconciled date, and reference type. This allows the administrator to review the data in several different formats. It also allows the administrator to group particular transactions for budgeting purposes.
The transaction breakdown report is one of many reports that our system provides. Please click here to check out some of our other popular accounting and financial management reports which include: All Funds Financial Summary, Budget, Funding Source Balance, Salary Coverage, and Special Commitment. To find out more about these and other helpful grant management reports, please contact the IT Works team today.