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Core Content: Debits and Credits in FAMIS

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In FAMIS, debits and credits are often displayed in the same column. To differentiate the credits from the debits, credits are “signed” (negative) and debits are “unsigned” (positive).

FAMIS is an expenditure-based system where expenses are expressed naturally as debits. Debits are displayed in FAMIS as “unsigned” (positive) numbers.  Revenues are naturally credits and, since debits are unsigned, credits are displayed in FAMIS as “signed” (negative). This enables both debit and credit entries to be displayed in a single column, providing room for additional information on reports and screens.

Subsidiary Ledger (SL)

Budget Transactions

Revenue budgets are natural credits, whereas expense budgets are natural debits. In the following image, budget entries highlighted in yellow are revenue budget increases; therefore, they are credits and signed (negative) in FAMIS. The budget entries highlighted in green are the corresponding expense budget increases; therefore they are debits and unsigned (positive) in FAMIS. The revenue budget highlighted in pink is a revenue budget decrease, a debit entry (positive), and the expense budget highlighted in blue is an expense budget decrease, a credit entry (negative).

Screen 046 – Budget Transactions

Screen 046 - Debits and Credits

Revenue Transactions

Revenues are natural credits. In the following image, the entries highlighted in yellow are increases to revenue, credit entries, and are signed (negative) in FAMIS. The entries highlighted in green are refunds of revenue, debit entries, and are unsigned (positive) in FAMIS.

Screen 046 – Revenue Transactions

Screen 046 - Revenue Transactions

Encumbrance Transactions

Encumbrances are pre-expenses and therefore are natural debits. In the following image, the entries highlighted in yellow are increases to encumbrances, debit entries, and unsigned (positive) in FAMIS. The entries highlighted in green are decreases to encumbrances, credit entries, and signed (negative) in FAMIS.

Screen 046 – Encumbrance Transactions

Screen 046 - Encumbrance Transactions

Expense Transactions

Expenses are natural debits. In the following image, the entries highlighted in yellow are increases to expenses, debit entries, and unsigned (positive) in FAMIS. The entry highlighted in green is a decrease to expense, a credit entry, and signed (negative) in FAMIS.

Screen 046 – Expense Transactions

Screen 046 - Expense Transactions

SL Summary View

In the summary view, the same rules apply; revenues and revenue budgets are natural credits (signed), whereas expenses, expense budgets, and encumbrances are natural debits (unsigned). On the summary screens, Budget, Actuals and Encumbrances are in separate columns.

In the following image, the revenue budget is highlighted in yellow in the Budget column and, as a credit, is signed (negative) in FAMIS. Expense budgets are highlighted in green and, as debits, are displayed in the Budget column as unsigned (positive).

In the Actual column, revenue actuals are highlighted in pink and, as credits, are signed (negative) in FAMIS. Expense actuals are highlighted in blue and, as debits, are unsigned (positive) in FAMIS.

In the Encumbrances column, encumbrance summaries are highlighted in purple, and as pre-expenses, these are debits and are unsigned (positive) in FAMIS.

Screen 034 – SL Summary

Screen 034 - SL summary

General Ledger (GL)

GL Transactions

In GL accounts, assets (subcodes 1xxx) have a natural debit balance, while liabilities (subcodes 2xxx) and fund balances (subcodes 3xxx) have natural credit balances. As with the SL accounts, debits are unsigned (positive) and credits are signed (negative).

In the following image, the entry highlighted in yellow is a credit entry to an asset, Cash, so it is signed (negative), while the entry highlighted in purple is a debit entry to Cash and is unsigned (positive). The entries highlighted in green are debit entries from another asset, Due from Part 01, and are both unsigned (positive). The entry highlighted in blue is a credit entry to Fund Balance and is signed (negative).

Screen 046 – GL Transactions

Screen 046 - GL Transactions

GL Summary View

In the following image, the entries for the two assets, Cash and Due from Part 01, are highlighted in blue. These are debit balances and are unsigned (positive).

The entries for liabilities and fund balance, Accounts Payable and Fund Balance, are highlighted in yellow. These are credit balances and are signed (negative).

Screen 018 – GL Summary View

Screen 018 - GL Summary View

FAMIS_CC_DebitsCredits.docx