Lesson 2: General Ledger Accounting Key - UAB

Lesson 2: General Ledger Accounting Key - UAB

General Ledger Account Structure: GL Accounting Key General Ledger transactions are posted to an Accounting Key. This accounting key consists of the ...

129KB Sizes 0 Downloads 10 Views

General Ledger Account Structure: GL Accounting Key

General Ledger transactions are posted to an Accounting Key. This accounting key consists of the Account String and the Object Code. Each of its six segments capture a different element (who, what, where, when, and how) of the transaction.

General Ledger Accounting Key In the General Ledger, transactions are posted to an “Accounting Key”, consisting of six segments: Account (ACCT), Subaccount (SUB), Balancing (BAL), Organization (ORG), Future (FUT), and Object Code (OBJ). The first five segments are known as the “Account String”. Therefore, an Accounting Key is comprised of an Account String plus an Object Code. The first five segments of the accounting key are also referred to as the account string or the ASBOF (Account, Subaccount, Balancing, Organization, and Future) – that is, the first five segments without the object code. The remaining segment is the Object Code. Note: When writing the accounting key, a decimal separates each segment of the accounting key.

Below is an example of the new GL Accounting Key:

2100684.000.110100000.184200000.0000.8209040

ACCT

SUB

BAL

ORG

Account String

Accounting Key

FUT

OBJ

General Ledger Account Structure: GL Accounting Key To assist in entry of the accounting key in Oracle, you will frequently see a screen similar to the one below. There are lists of values (LOVs) available for each field to aid in the search process. As you select each segment from the LOV or type each segment directly into the field, a description of that segment will appear to the right of the number selected. In this format, the decimals between each segment are implied so that you do not have to type them.

More specific information on the six Accounting Key segments is detailed below. • • • • • •

Account (ACCT) Segment Subaccount (SUB) Segment Balancing (BAL) Segment Organization (ORG) Segment Future (FUT) Segment Object Code (OBJ) Segment

Back to top

Created on 10/5/2005 9:45:00 AM

2

General Ledger Account Structure: GL Account (ACCT) Segment The Account (ACCT) segment is the first segment of the GL accounting key. The Account segment consists of seven numeric digits and identifies the primary activity for which money is being spent.

The first digit of this seven-digit segment is earmarked to represent specific types of account strings. Important Note: Account segments starting with 6, 8, or 9 are GA/GL Recap accounts. Account Segments Balance sheets 0xxxxxx

Account Segments Income statements 1xxxxxx 2xxxxxx 3xxxxxx 4xxxxxx 5xxxxxx 6xxxxxx 7xxxxxx 8xxxxxx 9xxxxxx

Identify a primary activity of… Balance sheets, University and Hospital

Identify a primary activity of… University revenue-only income statements University expenses-only income statements University mixed revenue/expenses income statements University – reserved for future mixed revenue/expenses income statements University mixed revenue/expenses income statements GA Plant project GA/GL Recap income statements Hospital revenue/expenses income statements GA Grant-Related Income, Mandatory Cost Sharing, and Student Financial Aid GA/GL Recap income statements GA sponsored grant projects GA/GL Recap income statements

There is no further blocking for University Account segment values. UAB Financial Affairs utilizes the Oracle processes to assign all University Account values in sequential order within each prefix (i.e., except for the first digit, there is no blocking for University Account values).

3

General Ledger Account Structure: GL Account (ACCT) Segment Account Segment (Hospital) In addition to the institution-wide standard one-digit prefix, the Hospital will also utilize the second and third digits of the Account segment to further define the type of accounting activity as follows: Account Segment Prefix

Hospital Blocking Code

Hospital Activity Group

Hospital Blocking Code: 1 Other Unrestricted 2 Unrestricted Self-Supporting 4 Restricted (including all Endowments) 5 Debt 6 Plant Project Funding 7 Assets 8 Capital Equipment Purchase

Hospital Activity Group: 1 Routine 2 Ancillary 3 Discounts/Capitation 4 Patient Support 5 Other Operating 6 Administrative 7 Financial 9 Nonoperating

To ensure the integrity of their internal blocking, Hospital Finance assigns all Hospital Account values. There is no range blocking in the remaining digits of the Account segment. Back to top

Created on 10/5/2005 9:45:00 AM

4

General Ledger Account Structure: GL Subaccount (SUB) Segment

The second segment of the new GL accounting key is the Subaccount (SUB) segment. The Subaccount segment consists of three numeric digits and is used to further track activities, tasks or time periods within its specified account.

Subaccount reflects a breakdown of the Account activity and is, therefore, dependent on the Account segment. The Account segment of the GL accounting key, along with its dependent Subaccount segment, uniquely identifies an active GL income statement account string. With the exception of some Subaccount segment values designated for institutional use by UAB (see below), the Subaccount segment has meaning only within the context of each Account segment. This means, for example, that a Subaccount segment value of 123 could be designated to represent the first quarter of the fiscal year in one account string and could be designated to represent a specific faculty member’s discretionary funds in another account string. Initially, all Subaccount segment values will default to 000. UAB has designated certain blocks of Subaccount segment values for institutional purposes (specific values to be determined in the future). 000 001 – 099

100 – 899 900 – 999

Default value for all University Subaccount segments currently and will always be the Subaccount segment value for balance sheets Reserved for Hospital-wide or University-wide purposes (i.e. within the Hospital, these Subaccount segment values have a consistent meaning regardless of the Account segment value; and within the University, these Subaccount segment values have a consistent meaning regardless of the Account segment value). In the future, will be for optional end user purposes within a given Account segment value. Reserved for institution-wide UAB purposes (i.e. these Subaccount segment values have a consistent meaning across UAB regardless of the Account segment value.

Remember, in the Administrative Systems, all Subaccount segment values will default to 000. Subaccount segment values for balance sheets will always be 0s and how they will be used for income statements has not been fully explored. Important Note: Balance sheets are never maintained at a level any lower than the Account segment level. That is, although revenue and expense can be tracked at the Subaccount level, balance sheets are never maintained at the Subaccount level.

Back to top

5

General Ledger Account Structure: GL Balancing (BAL) Segment

The third segment of the new GL accounting key is the Balancing (BAL) segment. The Balancing Segment segment consists of nine numeric digits and will track activities for which UAB may need a balance sheet, whether for internal or external purposes.

The Balancing segment is used to match revenues to expenses, track spending restrictions and designations, categorize UAB’s net assets for external reporting, and to define the carry forward of year-end balances. The balance sheet represents a report grouping, with assets, liabilities, and net assets (also known as a fund balance, equity, retained earnings, etc.). Separate balance sheets are maintained to satisfy the need for adequate stewardship in accordance with the requirements of donors, trustees, granting agencies, or other internal management purposes. The balance sheets are aggregated for audited financial statement purposes. Listed below are examples of how the Balancing segment would be relevant: • To identify Hospital’s General Operating Funds vs. School of Medicine’s General Operating Funds • To separately account for a restricted gift • To separately account for an endowment • To separately account for the receipt and use of a grant sponsor’s award For accounting activity managed in the Oracle General Ledger, the Balancing segment of a GL income statement account string indicates the balance sheet to which that account string is related. For a GL balance sheet account string, the Balancing segment uniquely identifies the specific balance sheet. For income statements, the Balancing segment value is always identical to the Balancing segment value of the balance sheet account string to which it relates. The first two digits of the Balancing segment indicate the internal functional grouping.

BAL segment range

Name

General Operating 100000000 - 199999999 110000000 – 119999999 Central General Operating Accounts 120000000 – 129999999 Academic General Operating Accounts 130000000 – 139999999 Hospital General Operating Accounts 140000000 – 149999999 Auxiliaries General Operating Accounts Other Unrestricted 200000000 - 299999999 210000000 – 219999999 Misc. Unrestricted Accounts 250000000 – 259999999 Unrestricted Endowment Earnings/Spending Accounts 290000000 – 299999999 Professional Service Funds Student Loan 300000000 - 399999999 310000000 – 319999999 Federal Student Loan Funds 320000000 – 329999999 Nonfederal Student Loan Funds Other Restricted 400000000 - 499999999 410000000 – 419999999 Restricted Gift Accounts 420000000 – 429999999 Misc. Restricted Accounts

6

General Ledger Account Structure: GL Balancing (BAL) Segment 450000000 – 459999999 480000000 – 489999999 490000000 – 499999999

Restricted Endowment Earnings/Spending Accounts Grant-Related Income GAGL Recap Accounts Grant Mandatory Cost Sharing GAGL Recap Accounts

Endowment 500000000 - 599999999 510000000 – 519999999 Pure Endowments 520000000 – 529999999 Term Endowments 530000000 – 539999999 Independent Quasi-Endowments 540000000 – 549999999 Quasi-End Related To Pure 550000000 – 559999999 Quasi-End Related To Term 560000000 – 569999999 Quasi-End Related To Independent Quasi Grant 600000000 - 699999999 600000000 – 609999999 610000000 – 619999999 620000000 – 629999999 630000000 – 639999999 640000000 – 649999999

Federal Student Financial Aid Grants GAGL Recap Accounts Federal Gov’t Grants & Contracts GAGL Recap Accounts State Gov’t Grants & Contracts GAGL Recap Accounts Local Gov’t Grants & Contracts GAGL Recap Accounts Private Grants & Contracts GAGL Recap Accounts

Annuity & Life Income 700000000 - 799999999 710000000 – 719999999 Annuity Funds 720000000 – 729999999 Life Income Funds Plant 800000000 - 899999999 820000000 – 829999999 830000000 – 839999999 840000000 – 849999999 850000000 – 859999999 880000000 – 889999999 890000000 – 899999999

General B&E Reserves Funded Depreciation Reserves Trusteed Construction Funds University Capital Plant Projects (Hospital 837001500) Plant Asset Accounts Plant Debt Accounts

Agency 900000000 - 999999999 900000000 – 909999999 Hospital Agency Funds 990000000 – 999999999 University Agency Funds The remaining seven digits of the Balancing segment value must be the same as the Account segment if a one-to-one relationship exists between the income statement and balance sheet account strings. Also, both the Organization and Balancing segment values must match between the two account strings. Example of a one-to-one relationship

3100022.000.213100022.446001234.0000 – Income Statement 0000000.000.213100022.446001234.0000 – Balance Sheet

A many-to-one relationship exists when several income statements roll up to one balance sheet. If a many-to-one relationship exists between the income statements and balance sheet (such as in the case of a Dean’s office balance sheet which includes several general operating funds accounts), then the remaining seven digits of the Balancing segment will not be the same as the Account segment.

7

General Ledger Account Structure: GL Balancing (BAL) Segment Example of a many -to-one relationship

1012345.000.110100000.114102000.000 – Income Statement 1987654.000.110100000.114102000.000 – Income Statement 0000000.000.110100000.114102000.000 – Balance Sheet

In limited cases, a balance sheet account string will have no related income statement account strings at all. This relationship is known as a “stand-alone balance sheet,” and is not permitted except in the Central and Hospital general operating funds.

Back to top

8

General Ledger Account Structure: GL Organization (ORG) Segment The fourth segment of the new GL accounting key is the Organization (ORG) segment. The Administrative Systems defines an Organization as a unit in which people operate, i.e. a department or division within the Hospital or University.

The ORG segment of the GL accounting key represents the organizational reporting structure of the University and Hospital. An Organization is further defined as a unit with a physical presence, an ongoing business objective, allocated funding, and fiscal oversight by a responsible manager. The ORG segment consists of nine digits, structured as follows: ORG

X

X

X

X

X

X

X

X

X

Bal Seg Prefix Department Division Subdivision

The two-digit prefix of the ORG segment indicates the primary unit. Below are examples of the two-digit prefixes: Institutional 00 – 09: 01 09 Central Administration 10 – 19: 10 11 18 19 Provost 20 – 59: 20 – 27 28 – 29 31 32 33 34 35 37

General Administration Athletics President VPFAA VPDAER VPIT Provost General Libraries School of Medicine School of Dentistry School of Optometry School of Nursing School of Health Related Professions School of Public Health

9

General Ledger Account Structure: GL Organization (ORG) Segment 39 41 42 43 44 45 46 51 Health System Administration 60 – 69 Hospital 70 – 79 Agency Funds 90 – 99: 90 99

Academic Joint Departments School of Arts & Humanities School of Business School of Education School of Engineering School of Natural Sciences & Mathematics School of Social & Behavioral Sciences Graduate School

Hospital Agency Funds University Agency Funds

The first two digits of the ORG segment value indicate the primary unit. The first five digits indicate the Department. The first seven digits indicate the Division. All nine digits identify the new Subdivision. GL Organization Segment Example 3

1

1

4

0

2

4

1

0

School of Medicine Department of Medicine

Division of Infectious Diseases Vaccine Center

Back to top

10

General Ledger Account Structure: GL Future (FUT) Segment

The fifth segment of the new GL accounting key is the Future (FUT) segment. The FUT segment has been reserved to meet any future requirements UAB may have that necessitate the expansion of the GL accounting key.

The benefit of having a future use segment will result in minimal work to be done if a subsequent event arises causing the need for an additional accounting key segment. The Future segment consists of four numeric digits and defaults to 0000

Back to top

11

General Ledger Account Structure: GL Object Code (OBJ) Segment

The sixth and final segment of the GL accounting key is the Object Code segment. The OBJ segment consists of seven numeric digits representing the natural account classification.

The Object Code categorizes the nature of dollars as a specific type of revenue, expense, asset, etc. The Oracle system requires that this be a segment in the accounting key. UAB has blocked certain ranges of Object Code segment values to represent specific account classifications. The first digit of the Object Code segment specifies the major range and identifies the major financial reporting categories (Example: assets, liabilities, revenues, expenses, etc.). Object Code segment blocking: Balance sheet Assets Liabilities Balance Income statement Transfers In & Out Revenues Expenses

1000000 – 1999999 2000000 – 2999999 3000000 – 3999999 4000000 – 4999999 6000000 – 6999999 8000000 – 8999999

The first three digits are called the minor range and identify common grouping for object code summary reporting (Example: salaries and wages would be a range within expenses). Object Code segment minor range blocking*: Salaries & Wages Supplies Travel

8100000 – 8109999 8200000 – 8209999 8300000 – 8309999

Important Note: These are just a few examples. For the full list of official object codes, click here.

12

General Ledger Account Structure: GL Object Code (OBJ) Segment The first five digits of the Object Code segment are called the primary summary object code and identify the level at which you would probably most often expect to see detail object codes. Object segment primary summary blocking: 8104000 – 8104099 8201000 – 8201099 8301000 – 8301099

Salary – Secretarial/Clerical Supplies – Office/Administrative Supplies Travel – Employee Travel/Training

All seven digits of the Object Code segment are referred to as the primary detail object code and identify a breakdown of the primary summary object code. Primary detail object code examples*: 8104010 Salary – Secretarial/Clerical, Administrative 8104090 Salary – Secretarial/Clerical, Other 8201011 Supplies – Office/Administrative Supplies, Copier/Printer Paper 8201012 Supplies – Office/Administrative Supplies, Toner Cartridges 8301010 Travel – Employee Travel/Training, Employee Domestic Travel 8301020 Travel – Employee Travel/Training, Employee Business Mileage Important Note: These are just a few examples. For the full list of official object codes, click here. (link to www.uab.edu/finance) Oracle Structure: Object Code

XXXXXXX

Major Range: IDs Assets, Liabilities, Net Assets, Transfers, Revenues, or Expenses Minor Summary Range: IDs category (ies) of major range Example: supplies

Lowest level of categorization Example: sutures

Minor Detail Range: IDs further breakdown of minor summary range

Example: Med/Surg supplies

13

General Ledger Account Structure: GL Object Code (OBJ) Segment UAB’s Official Object Code Listing (OOCL), displaying the official definition and rollup relationship of each object code, is available here (add link). The object code ranges are as follows: BALANCE SHEET

INCOME STATEMENT

ASSETS

1000000 - 1999999 TRANSFERS

4000000

- 4999999

Cash Investments Accounts Receivable Notes Receivable Misc. Receivables Inventories Error Suspense Net Plant Assets Other Assets

1100000 1200000 1300000 1400000 1500000 1600000 1700000 1800000 1990000

Transfers In Transfers Out

4100000 4200000

- 4109999 - 4209999

REVENUES

6000000

- 6999999

Tuition External Sales/Services Internal Sales/Services Other Operating Revenues Contra-Revenues 2000000 - 2999999 Nonoperating Revenues

6100000 6200000 6250000 6600000 6700000 6800000

-

LIABILITIES

-

1109999 1209999 1309999 1409999 1509999 1609999 1709999 1809999 1999999

6109999 6209999 6259999 6609999 6709999 6809999

Accounts Payable & Accrued Expenses Unclaimed Property Deferred Revenues Deposits Held By UAB Unapplied Cash

2100000 - 2109999 EXPENSES

8000000

- 8999999

2400000 2500000 2600000 2700000

8100000 8190000 8200000

- 8109999 - 8199999 - 8209999

Plant Debt Other Liabilities

2800000 2990000 -

BALANCE

3000000 -

Net Assets Balance

3000000 -

8300000 8350000 8400000 8500000 8590000 8600000 8700000 8800000 8900000 8990000

-

-

2409999 2509999 Salaries & Wages 2609999 Employee Benefits & Taxes 2709999 Supplies, Materials, & Noncapital Equipment 2809999 Travel & Employee Training 2999999 Entertainment Telecommunications 3999999 Utilities Repairs & Maintenance 3999999 Other Services Other Operating Expenses Nonoperating Expenses Net Investment In Plant Indirect Cost Expense

8309999 8359999 8409999 8509999 8599999 8609999 8709999 8809999 8909999 8999999

Back to top

14

15