Where can I get training on SAP and other financial processes at MIT?

To view a listing of available classroom and web-based training sessions related to financial matters at MIT, see the “Financial Essentials” section of the MIT Learning Center course catalog. 

What is underrecovery?

Underrecovery may occur in a research WBS element where overhead specifications (F&A rates or direct cost base) are established at less than the current negotiated federal rates. More information can be found on the Research Administration Services (RAS) page on Underrecovery.

What is a costing sheet?

Costing sheets are used in SAP to provide the basis and rates for the calculation of Facilities and Administration (F&A) charges. During the monthly close the costing sheet process is run to charge cost objects with the appropriate F&A or fund fees; the costing sheet used for a cost object is displayed on the Summary Statement. 

What does settlement mean?

Settlement is the SAP month-end process that automatically transfers balances from an internal order or WBS element to another cost object or G/L account. Two reasons to settle to cost objects are to charge specific services (facilities or IS work orders to a DLC) or to group unique projects to a single larger project. When we settle to a G/L account, we are aligning costs to the correct part of the financial statements, most often the balance sheet (assets and liabilities). 

Can I open a bank account?

No.  You may not open a bank account with an independent bank using MIT’s name or tax ID number. For any banking issues or concerns, contact VPF Accounts Receivable for assistance.

What is FRC?

Financial Review and Control is the Institute’s procedure for ensuring that expenses and revenues on cost objects are appropriate, properly documented and reasonable for that cost object. 

What’s the policy on accruals and deferrals?

At the end of the fiscal year, all MIT departments should accrue and defer any material expenses and revenues. See the Policies section for more information.

Is MIT on an accrual basis?

MIT is on a modified accrual basis. At the end of the fiscal year, all obligations incurred but not paid and all revenues earned but not received are recorded, and expenses and revenues relating to subsequent periods are deferred. 

What is MIT’s fiscal year?

MIT’s fiscal year begins July 1 and ends June 30. The general ledger and all financial reports are produced on a fiscal year basis. 

What activities at MIT are subject to tax?

In a nutshell, MIT has three main tax areas: sales tax, meals and alcohol tax, and unrelated business income tax. Under each category many activities are exempt. In order to determine whether or not your DLC has taxable activity, please contact Jeremy Raphael or Rebecca Menin at VPF Tax.

How do I authorize someone to spend on my cost object?

DLCs can manage authorizations with the Roles Database.

How do I delete a line on a parked journal voucher?

If you work on Atlas, check the three small dots to the right of the line(s) you want to delete. Then click the Delete  Items button. If you work in SAP GUI, click the cursor to the left of line number for the line you want to delete. Then click Edit/Delete item. When you click Document/Complete, for each deleted line you will receive a Warning Message (in yellow): Amount is zero-line item will be ignored. SAP will leave the line as a marker, will zero out the dollar amount and will delete the line completely at the time the document is posted.

How can I receive an email message that my journal voucher has been approved or rejected?

On Atlas, click your name on the top right and select Settings and Authorization.  Under Email Notification Settings, check the box marked Journal Voucher is approved by the VPF and/or check the box marked Journal Voucher is rejected by the VPF. Then click Save Changes.

How do I know if I need to send backup to the VPF for my journal vouchers?

You no longer need to send journal voucher backup to the VPF. However, you do need to create a document that includes information to backup the journal vouchers. This includes originating transaction numbers and transaction dates when transferring expenses and revenues between cost objects, along with clear Line Item Text, and Explanation Text explaining why the journal voucher is being made.

How do I delete a parked journal voucher?

To delete a JV,in SAPgui, send an email to Journal-Vouchers@mit.edu and ask to have the JV deleted. In Atlas, open the JV and click delete on the top right. An email will be sent to the JV team to be deleted. Only parked JVs can be deleted. SAP does not let users delete posted journal vouchers.

My journal voucher was rejected. What is the process to change the JV and return it to the VPF?

You MUST retrieve the JV from your Inbox. If you work on Atlas, the rejected JV will have a red X mark on the right under status, click on that JV to open the JV for changes. Make the appropriate changes, and then click Continue to send the JV back to the VPF. If you click Cancel, the JV remains in your Inbox. If you work in SAP GUI, click on your SAPoffice: Inbox, and then double click on the JV you want to open and change. Make appropriate changes, and then click Document/Complete. SAP will also ask you if you want to re-submit the parked document for approval. Click "Yes." If you click "No" the JV remains in your Inbox.

My journal voucher was rejected. How do I find out why it was rejected?

The reason your JV was rejected has been added to the Explanation Text on the bottom of your JV. The rejection reason often includes suggestions for making changes to your JV that will result in approval and posting. If you work on SAPweb, scroll down past your Explanation Text to find the reason your JV was rejected. If you work in SAP GUI, click Extra/Texts and then open the Texts in Accounting Document box by double clicking on the word Correspondence, scroll down past your Explanation Text to find the reason your JV was rejected.