Kansas Department of Administration

10-a-009 - Transitioning Encumbrances to SMART (February 4, 2010)

Posted on 10/21/2021 at 12:49 PM by Kansas Department of Administration

INFORMATIONAL CIRCULAR NO. 10-A-009 Supplemented by 10-a-011
DATE: February 4, 2010
SUBJECT: Transitioning Encumbrances to SMART
EFFECTIVE DATE: Immediately
A & R CONTACT:

Randy Kennedy

(785) 296-2125

(Randy.Kennedy@da.ks.gov)

APPROVAL:
SUMMARY:

Encumbrances: Preparing for SMART


In July 2010, outstanding STARS encumbrances will be converted to SMART. Encumbrances in SMART will be equivalent to STARS contingent encumbrances that reserve appropriation/limitation, but not cash. There will be no equivalent to the STARS firm encumbrance in SMART. Vendor specific encumbrances will convert as Purchase Order (PO) encumbrances and non-vendor specific encumbrances will convert as General Ledger (GL) encumbrances.

Prior to June 30, 2010, any existing firm (Transaction Code 854 or 891) encumbrances in STARS must be converted to contingent encumbrances or be cancelled.

In preparation for conversion to SMART, it is necessary to review and clean up STARS encumbrances. On February 2, 2010, we distributed the annual listing of prior year encumbrances to aid in this endeavor. 

If you anticipate prior year DA118’s carrying over to SMART and the remaining balances can be identified to a specific vendor, you should submit a DA107 to cancel the DA118 and replace it with a new DA107 using transaction code 864 and the appropriate vendor number. These transactions should be batched together. This will allow those encumbrances to convert to Purchase Order encumbrances in SMART.

At fiscal year-end 2010, agencies will have the option of submitting either vendor specific DA107 encumbrances or DA118’s. The DA118 operator id’s will now be DA118/DA107 operator id’s. They will allow either Transaction Code 892 with no vendor number or Transaction Code 864 for vendor specific encumbrances (TC 854 and 891 will not be allowed). DA107, DA101, DA146 and DA47 encumbrances will convert to Purchase Order encumbrances in SMART. An informational circular will be issued with updated year-end encumbrance procedures. Existing DA118 encumbrances will be converted to GL encumbrances in SMART and will require the following procedures for payment in SMART:

  • The agency will need to reduce the GL encumbrance by the amount to be paid to the vendor.
  • The agency will be required to create a prior fiscal year requisition by entering it into SMART. SMART will apply the current budget date on the requisition. After the requisition has processed through workflow approvals and sourced to a Purchase Order, the agency should review and update, if necessary, the PO, then put it on hold. The PO will carry the same current budget date as the requisition. The agency should then contact Accounts and Reports staff to change the budget date to the prior year budget date. Accounts and Reports staff will make the change, notify the agency, and the agency will remove the hold. The PO will be run through budget check, and be dispatched via the scheduled batch processes.
  • The agency will then enter a voucher in SMART for payment.
  • As long as the PO is copied into the voucher, and the voucher is matched, budget checked and approved, the system should pick up the voucher for payment and process it in the next available Pay Cycle using the prior year budget date.

While agencies have the option to continue utilizing the DA-118, you are highly encouraged to utilize the DA-107 encumbrance when the vendor is known. Since these encumbrances will convert to Purchase Orders in SMART, the process noted above for changing the budget date will not be required for the encumbrances that convert to Purchase Orders during cutover.

Comments
There are no comments yet.
Add Comment

* Indicates a required field

© 2022 Kansas Department of Administration. All rights reserved.