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Chart of Accounts
Bill Overman, Indiana University
Multiple Charts
• Multiple charts form a hierarchy• Advantages:
– Separate distinct reporting entities– Routing to different areas of functional expertise– Institutional reporting rolls up data to use object codes, levels
and consolidations at the top level chart• Disadvantages:
– Maintenance of object codes, levels and consolidations on multiple charts
– An object code can have different meanings on different charts– Institutional reporting rolls up data to use object codes, levels
and consolidations at the top level chart
Top Level Reporting Chart
• Levels and consolidations for financial reporting at top level chart
• Levels and consolidations for management reporting at lower charts where accounts housed
• Capital Gifts and Grants– On SRECNA, need to report separately– For management reporting want to report with all
other gifts
Accounts
• Additional accounts or sub-accounts on an existing account?– Transition… are feeder systems ready to support sub-accounting?
Payroll, student, auxiliary units?– At IU, largely departmental preference
• Recycling accounts?– It happens… faculty research accounts are a common place– Encourage that the account be inactive for one year-end cycle
before recycling– Not for Contract and Grant accounts or where there is a specific
reporting requirement– Requiring inactive accounts to be closed would be one way to
prevent recycling
Accounts
• Parameters define what fund group or sub-fund group represents a contract and grant account
• At IU, represented by a fund group (CG)• Other schools want the fund group to be restricted funds
and contracts and grants to be represented by a sub-fund group
• Logic throughout the system based on if (sub-)fund group = contracts and grants
• One parameter indicates if contract and grant accounts are represented by a fund or sub-fund (FUND_GROUP_DENOTES_CG_IND )
• A second parameter indicates the value of the fund or sub-fund that represents contract and grant accounts (CG_DENOTING_VALUE )
Accounts
• Contract and grant account parameters
Accounts
• Inception to date reporting– C&G Beginning Balance field populated with total of all
activity for prior fiscal years– Using GL Balance table, add C&G Beginning Balance
and Account Line Annual Balance for inception to date reporting or selected monthly buckets for inception to period reporting
– C&G Beginning Balance field by default populated for accounts identified as contract and grant accounts
– Can also optionally be populated for other sub-fund groups based on a parameter (SUB_FUND_GROUPS_FOR_INCEPTION_TO_DATE_REPORTING)
C&G account, monthly amount view:
C&G account, accumulated amount view:
Non-C&G account, monthly amount view:
Accounts
• Income Stream Account– Balancing tool for budgets
• One income stream account for all accounts where the budget must balance
• When an budget adjustment crosses income stream accounts, balancing entries are created and a transfer of funds is generated
– Reference information for contract and grant accounts
– Parameter for release 3 to turn off balancing entries
Accounts
• Object Presence Control Indicator– If this flag is set to yes, an object code must be budgeted
for an account before it can be used on other transactions
• Applies to kuali e-docs only, not batch feeds
– Not a hard stop, initiator has the option to override the warning that the object code is not budgeted
• Override appears on the document• Ability to establish routing rules based on the override
Accounts
• Rules for closing an account
– The account can not have a base budget
– The account can not have balances in asset, liability or fund balance codes other than the designated fund balance code on the system options table
– Closing income and expense to fund balance must take the designated fund balance code on the system options table to zero
– The account can not have open encumbrances
– The account can not have pending ledger entries
– The Beginning Balances Loaded flag on the system options table must be set to Yes.
Sub-Accounts
• Financial Reporting Code tab– Sub-Accounts are intended to stand-alone
• Sub-account ABCDE on one account has no relationship to sub-account ABCDE on another account
– Financial Reporting Code provides a method to link like sub-accounts
• Chart and organization are part of the key to financial reporting code
– Used to differentiate codes if multiple units choose to use financial reporting code
Sub-Accounts
• CG Cost Sharing tab– Sub-accounts created on a contract and grant account to
track cost share– Transactions posted to these sub-accounts will generate
a transfer as part of the nightly batch cycle• If cost share is salary, appoint the position to the sub-account• Transfer from the Cost Sharing Account Number (and sub-
account if entered)
– Only members of CG_COST_SHARE_SUB_ACCOUNT_MAINTAINERS (KUALI_CGSACCT)
can edit fields on this tab
Sub-Accounts
• CG ICR tab– Only allowed on a Contract and Grant Account– ICR attributes on this tab override ICR attributes for the
account for transactions posted to this sub-account• On-campus vs. off-campus rates
– Only members of CG_COST_SHARE_SUB_ACCOUNT_MAINTAINERS (KUALI_CGSACCT) can edit fields on this tab
– Not in Release 2
Object Codes
• Reports to Chart Code and Reports to Object Code– If your implementation has multiple charts, the
object code must report to an object code one level up
• An object code at the top level chart will report back to itself
– If your implementation has only one chart, an object code will report to itself
Object Types
• Default object type assigned on object code table• Documents and batch jobs may assign a different
object type for the general ledger entry– Transfers of Funds, Auxiliary Voucher, Payroll Accruals
• Why four income and four expense types– Separate transfers– Controls when ICR is charged– Separates purchases of capital equipment
Transfer Object Types
• Unique transfer codes vs. allowing any code to be used as a transfer– Using any code provides flexibility for departments– Unique codes separate transfers when budgeting
• Using TI or TE as a default object type– Allowing any code to be used as a transfer – allow TF document
to reassign– Dedicated codes for transfers – then it’s a possibility
• TI and TE or only TE and contra TE– Using both shows income and expense totals for individual units
as they expect– Using only one allows transfers to net without additional work for
the institution as a whole
Budget Recording Level Indicator/Budget Aggregation Code
• Budget Recording Level Indicator is an attribute of account
• Budget Aggregation Code is an attribute of object code
– Set this code to ‘O’ for object in both cases
– Originally intended to allow budgeting by consolidation, level or object code
– Parameter in release 3 to control which budget recording level indicators allow an account to be used in budget construction
Reporting Using Reports to Object Code
• Top level chart has a set of object codes
• May or may not have accounts in top level chart
• Need to roll up activity in lower level charts and report using a common set of object codes
• Example
Budget• Budget has to balance by account? Sub-fund?
Fund? Org?• Attributes on fund group and sub-fund group
tables control how budget adjustments are allowed to cross accounts
Sufficient Funds Checking
• Hard stop with no override• Sufficient Funds Code populates sufficient funds
balances table• TP SF Check controls whether application does
sufficient funds checking• What isn’t checked• Internal, External, Pre-encumbrance check boxes
on the account document• Beginning Balances Loaded flag on the system
options table
Sufficient Funds Checking
• Different levels of checking and the formulas– Budget checking (4 options) current budget – actual – open
encumbrances +/- pending ledger entries• O (object) – checks for the specific object code on the document• L (level) – combines activity for all object codes in the same level as the
object code on the document• C (consolidation) – combines activity for all object codes in the same
consolidation as the object code on the document• A (account) – combines activity for all expense object codes
– Cash checking – H • Current cash balance – open encumbrances – current liabilities +/-
pending ledger entries– Current liabilities object codes controlled by parameter
(SUFFICIENT_FUNDS_CURRENT_LIABILITIES_OBJECT_CODES)
– No checking – N
Sufficient Funds Attributes on an Account Document
Plant Fund Accounts
• On the Organization document• Any capital expenditures on an account in this
organization will create capitalization entries in the designated plant fund account
• Org Plant Fund account for moveable equipment• Campus Plant Fund account for land/buildings• Which object codes create capitalization entries in
which account controlled by object sub-types on capital object codes and parameters:
– (PLANT_FUND_CAMPUS_OBJECT_SUB_TYPES )– (PLANT_FUND_ORGANIZATION_OBJECT_SUB_TYPES)
Higher Education Function Code
• AICPA, Federal and UBO function codes are all attributes of Higher Ed Function Code
• Higher Ed Function Code associated with an account
Academic Support
Instruction and Unsponsored Research
Global e-docs
• Global Account – update existing only• Global Account Delegate – inactivates existing
delegation and replaces with delegation on document
• Global Object Code – create new or update existing• Global Sub-Object Code – create new or update
existing• Global Organization Reversion – update existing
only
Organization Reversion
• Controls how budget balances in general fund accounts are handled at year end– Carry forward all– Revert all– Carry forward positives, revert negatives– Carry forward negatives, revert positives– Each with an option to cover open
encumbrances first
• Example
Decision Support
• Year-End snapshots– Or more frequent?
• Adding object codes from top level chart to general ledger balance and general ledger entry datagroups