Overhead costs covered by the Monthly Port Charge
Question:
How is the telephone encumbrance, that I see on my monthly budget under object code 3660, created and why or how does it change each month?
Answer:
This is an FRS mechanical process that is part of our financial accounting system. Every University account that pays for telephone and data use has an encumbrance created, automatically, for the monthly phone/data port fee. The encumbrance that you see on your account looks like this:
| P.O. | Date | |||||
| Obj | Ref. No. | Estab | Description | Original | Liquidated | Current |
| 3660 | A900006 | 09/19 | NORTEL ENC CREATE | 1,989.00 | 1,989.00 |
On, or around the 12th of each month, every account that pays for phone/data port use and telephone unit lease fees are billed under budget object code '3660'. example - on 9/12 a budget is charged for 5 phone/data ports and 5 M2008 phone unit lease fees ( ($40.00 + 4.20) x 5 = $221)
A few days after this charge is expensed to your budget, the University's automated process that runs in FRS goes to each account, looks at what you were charged for phone/data use for that month ($221) and automatically deletes the old A900006 encumbrance and creates a new one which is equal to the current month's fee times the number of months left in the fiscal year. example - September charge was $221 - The new encumbrance will be $221 x 9 or $1,989 (Oct-June).
With this process, your encumbrance is automatically adjusted, monthly, based on your current use. Therefore, if you change phones or number of phone/data ports, your encumbrance will be modified to meet the new need.
Note: This same encumbrance process is used for PhoneMail, when more than the 5 free minutes is required.
Last modified June 18 2004 04:02 PM