Cancel Grants

When you post an Application, FIMS creates a Grant Voucher entry in A/P. You can still cancel a Grant after it posts, and the Voucher is created (and even after the Voucher is posted to Open Items).

How Do I cancel a Grant or Scholarship?

• If the Voucher is not posted in Accounts Payable, canceling the Grant results in a reduction or complete elimination of the unposted Voucher.
• If the Voucher is posted in Accounts Payable, a Debit Memo is created in Item Entry, which must be posted to reduce or eliminate the payable.

  Note: If you have already written a check to make the Grant payment, but have not sent it, you must use the Void Check routine to reverse the payment and restore the payable. Then you can run the Grant Cancellation routine, which will create a Debit Memo and reduce or eliminate the payable. The cancellation process will warn you if you need to void a payment before canceling the Grant. Refer to Voiding Payments in the Accounts Payable module for more information.

  Tip: Refer to the Grant Adjustment Helper for more tips on canceling Grants.

  Note: You can access all of the adjustment utilities via the Adjustments tab on the Application History super tab. You can also adjust a specific Grant by right-clicking on the appropriate payment line on the Payment Plan tab in Application History and selecting Adjust Grant.

             1. In the Grantee and Grant Management module, open the grant that you would like to cancel in Application History super tab.

           2. Click the Adjustments tab of the grant record. The Grant Adjustments window opens.
Example: Grant Adjustments Window for Cancellations

3. In the Apply Date field, enter the desired apply date for the cancellation. The default value is today's date.

4. Click the arrow in the Status field and select the desired code to apply to the adjusted Grant (for example, C – Cancelled). This code will help make identification of canceled Grants easier when you run reports and inquiries.

5. Enter a Reason for Adjustment. This reason will be included on the Grant Cancel / Refunds report and is helpful in tracking trends in your grant adjustment process.

6. If there is more than one payment line, select the line you want to adjust.

7. Select the Cancellation radio button and then do one of the following:

• If you are canceling a portion of the Grant, enter the amount that the Grant will be reduced by in the New Amount field (e.g., to cancel a $1000 portion of the Grant, enter $1000).
• If you are canceling the entire Grant, select the Complete Refund checkbox.

8. Either click in a different field or press the Tab key on your keyboard. The system will automatically update the New Amount field with the adjusted Grant Amount.

Note: If the Grant has not been paid, or the refund amount is greater than the paid amount, a message will appear to let you know that you cannot refund an amount greater than the paid amount.

9. Click the Process Adjustment button. The Grant Adjustment Verification report opens in the FIMS Viewer. This report verifies the adjustment information that you entered and provides information about the steps that will be taken if the adjustment is fully processed (e.g., the Debit Memo number that will be created to apply to the Grant Voucher in Accounts Payable).

Sample report showing a partial cancellation:

Sample Verification Report Messages

• Debit Memo Created: Displays the number of the debit memo that will be created to apply to the Grant Voucher in AP.
• No AP Line Item is Available: Indicates that the Grant has not been posted to Open Items in Accounts Payable.

10. Once you have reviewed the report and are sure you want to process the adjustment, click Commit Changes on the FIMS Viewer menu bar.

Tip: Apply Date and Credit Accounts for Grant Cancellations

The apply date and credit account used for Grant cancellations varies depending on the cancellation (the debit account is Grants Payable).

Apply Date:

• If you cancel a Grant in the same year as the Grant was made, you should use the original Grant Date as the Apply Date. This is the default date for running Grant cancellations.
• If you cancel a Grant from a previous year (for which the books are closed), you should use the actual cancellation date as the Apply Date.

Credit Account:

If you cancel a Grant from a previous year, the Grants Expense account (which is already audited), will still include the canceled amount. This raises the issue of whether you should reduce your organization’s Grant Expense account for the current year by the canceled amount.

• Some organizations use a Returned Grants (from previous years) revenue account for all prior year cancellations and Grant Refunds. This helps to ensure that in the current year’s audit, a listing of Grant amounts will tie out with Grants Expense from G/L. However, this will not be true for the previous year, because the cancellation will change the Grant Amount Detail but not the General Ledger Grants Expense.
• Some organizations credit a Returned Grants account for all cancellations and Refunds. The total of Grant Amount detail would not tie out with G/L Grants Expense from any year with adjustments – but for audit purposes you could use the Application History Listing and compare Grants Voted to Grants Expense in G/L.