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Oracle General Ledger & Chart of Accounts. SM~111030 Management Accounts Workshop Objectives To Understand the relationship between General Ledger and.

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Presentation on theme: "Oracle General Ledger & Chart of Accounts. SM~111030 Management Accounts Workshop Objectives To Understand the relationship between General Ledger and."— Presentation transcript:

1 Oracle General Ledger & Chart of Accounts

2 SM~111030 Management Accounts Workshop Objectives To Understand the relationship between General Ledger and Subledgers To Understand the Chart of Accounts Recognise good practice Recognise bad combinations Understand Cross Validation rules

3 Oracle Sub Ledgers Simplified PURCHASING RECEIVABLES PAYABLES CASH MANAGEMENT POST PROJECTS This is not a complete picture, but gives a general overview of the posting of transactions between Subledgers and General Ledger Payments Out Receipts In Invoices In Invoices Out Invoices In Orders Out Orders In GENERAL LEDGER

4 Oracle Sub Ledgers Simplified PURCHASING RECEIVABLES PAYABLES CASH MANAGEMENT POST PROJECTS This is not a complete picture, but gives a general overview of the posting of transactions between Subledgers and General Ledger Payments Out Receipts In Invoices In Invoices Out Invoices In Orders Out Orders In GENERAL LEDGER

5 Payroll Journal Adjustments FSG Reporting Open/Close Periods New Segments (accounts) Cross Validation Combinations

6 Reliable Information for External Reporting Management Accounts Statutory Accounts Finance Group University Board HESA returns Transparency Review Freedom Of Information Act VAT Corporation Tax These reporting requirement require a robust underlying Chart of Accounts and strict rules to ensure the reliability of information to avoid penalties

7 Chart of Accounts 5 Segments 1.Company- 2.COST CENTRE - 3.ANALYSIS CODE - 4.ACCOUNT - 5.Spare e.g. 10-11000-AA11000100-11111-100000 CU-MEDIC-GENERAL-PROF_SALARY-SPARE

8 Combinations Disabled Once a combination is used it cannot be deleted; However we can disable it

9 Cost Centres 10- 11000 -AA11000100-11111-100000 Schools / DirCost Centre = Department 11MEDIC11000MEDIC Central Group1 111% 11100MEDIC Haematology 11110MEDIC Pathology 11120MEDIC Medical Genetics 11130MEDIC EMU Unit Group2 112% 11200 11210 15SONMS15100SONMS 631FINCE63100Finance 63150Purchasing Each school is allocated a number 11 to 39. All cost centres are modelled on this number. Some schools have many departments e.g. 111%, 112% and 113% in MEDIC. Cost centres are used for security / approval routes. Ensuring that each school can only access its own Analysis Codes

10 Analysis Codes Each activity type has been allocated a two letter prefix. All analysis codes for a given activity type begin with this letter to facilitate year end and management reports. Sometimes the 7 th and/or 8 th characters also have meanings e.g. the “T” in KC1100T001 Indicates that the activity could be taxable. This is why Management Accounts and Corporate Financial Services set up the analysis codes. 10-11000- AA11001234 -11111-100000 Analysis Codes (Activities) have 10 characters and several components. AA explains the activity type e.g Academic General. 1100 tells us that the Analysis code belongs to Medic Central. 1234 is the activity number.

11 Terminology 2 When we say: “A Analysis Codes” we mean anything beginning with A e.g. AA1100000 to AZ9999ZZZZ “ AA Analysis Codes” we mean anything beginning with AA e.g. AA1100000 to AA9999ZZZZ General School Codes. It is often better to communicate an analysis code by splitting it up into its components e.g. “AA_1100_1001”

12 Analysis Codes To separate activities and keep the income and all related expenditure together in one place for reporting. This is important for VAT and Corporation Tax and also for Management Reporting BA1234T001£ 70350 Course Fees(17,000) 40115 Consumables3,000 48175 Overheads4,250 Taxable Surplus(9,750)

13 Chart of Accounts Combination Rules Income and Expenditure e.g. 1100 0 - AA 1100 0100 – 11111 The first 4 characters of the Cost Centre is repeated within the Analysis Code These Cost Centre – Analysis Code (A% to S%) combinations must conform to strict rules to ensure security between schools Balance Sheet 10000 – YABC123456 Balance Sheet Analysis Codes have more flexibility but will rarely be used by schools or directorates

14 Analysis Code Types AA-AJAcademic departments TPA (AC) AK-AZAcademic departments Other BA_BF Academic and Administrative Courses (S) BQ Education Contracts TPA BV_BZAcademic Studentships CAcademic Services DStaff & Student Facilities E Admin (AD) F Premises (PR) G CSERV IIncome CENTRAL KAcademic Conferences (KC) LServices Rendered/Consultancy PROJECTS MServices Rendered/Consultancy N Salary-based recharges RResearch Grants & Contracts PROJECTS SEuropean Structural Funds PROJECTS YBalance sheet Each Activity has been allocated a letter. All analysis codes for a given activity type begin with this letter to facilitate year end and management reports.

15 Account Ranges 1%1000019999Salaries 4000047999Direct expenditure 7%7000079999External income 10-11000-AA11000100-11111-100000

16 Account Structure 1%1000019999Salaries 2%2000029999Salary recharges 4000047999Direct expenditure 4800049999Recharges / Overheads [internal] 6800068999Recharges / Overheads [internal] 6900069099Allocations 6910069999Internal Trade 7%7000079999External income 10-11000-AA11000100-11111-100000

17 Account Structure 0%0000009999Brought Forward Balances 1%1000019999Salaries 2%2000029999Salary recharges 3%3000039999Spare 4000047999Direct expenditure 4800049999Recharges / Overheads [internal] 5%5000059999Spare 6000067999Spare 6800068999Recharges / Overheads [internal] 6900069099Allocations 6910069999Internal Trade 7%7000079999External income 8000099999Balance sheet 10-11000-AA11000100-11111-100000 Staff Non Staff

18 Terminology When we say: “1 Accounts” we mean anything beginning with 1 e.g. 10000 to 19999. (salaries) “48 Accounts” we mean anything beginning with 48 e.g. 48000 to 48999. (Debit Transfers) “690 Accounts” we mean anything beginning with 690 e.g. 69000 to 69099. (Allocations)

19 Account Structure Direct Income and Expenditure Income 7000079999External Income Expenditure 1000019999Salaries 4000047999External (Direct) Expenditure All external income should be charged to 70000 to 79999 All direct salaries should be charges to 10000 to 19999 All direct expenditure should be charged directly to a 40000 to 47999

20 Account Structure Examples Recharges / Overheads [internal] DrCr 48 150 FEC:ESTATES COSTS 68 150 48160FEC:INDIRECT COST68160 48175OVERHEADS68175 48200BALANCE TRANSFERS TO CLOSE68200 48500TRANSFERS OF FUNDS68500 48% Accounts must match with 68% Accounts and net off to Nil within a journal transfer and therefore not effecting the Statutory Financial Statements.

21 Account Structure Examples Recharges / Overheads [internal] DrCr 21111RCHG PROFESSOR FT PERM21111 69010ALLOCATIONS69010 2% Accounts (salary recharges) are used alone and net off to nil. 690% Accounts (allocations) are used alone and net of to nil.

22 Account Structure Examples Internal Trade DrCr 40115CONSUMABLES69100 40130GASES (LABORATORY)69100 43520LABOUR RECHARGES (Estates)69550 Estates have their own internal trade accounts e.g. 69550 – 69559 CSERV also have their own internal trade accounts in the 6952% range. Internal trade accounts 69100 – 69999 net off with expenditure They are used with 40000 - 47999 Expenses And are charged to expenditure In the Financial Statements to net off

23 Account Structure Re-instate balances 0000009999Finance Accounts Currently 03300 accounts are for Finance to Re-instate Balances We try to keep this account disabled whenever possible. Schools can transfer opening balances to development accounts (personal pots) by using 03400. It is important that schools ensure that 03400 transfers net off to NIL. Other wise there TPA reports will be misrepresented.

24 Balance sheet 8000080999Fixed asset 8200082999Current assets 8500085999Liabilities 9000099999Capital & reserves Schools and Directorates should not post to these accounts Account Structure

25 Account Structure – ReCap 0%0000009999Brought Forward Balances (Jo & Steve + Schools) DR & CR on 0% 1%1000019999Salaries (Rhian)Direct (Cyborg) 2%2000029999Salary recharges (Schools)DR & CR on 2% 4000047999Direct expenditureDirect 6910069999Internal TradeRecharged (net off) 48%4800048999Recharges / Overheads [internal] Use 68% and 48% together 68%6800068999Recharges / Overheads [internal] 6900069099Allocations (Jo)DR & CR on 690% 7%7000079999External incomeDirect 8000099999Balance sheet

26 Account Structure - Salaries There is an underlying structure to Salary Accounts that facilitates the complex reporting required for external and internal purposes. Accounts have 5 characters Character 1 Character 2 Character 3 Character 4 Character 5

27 Summary Accurate and reliable accounts are required. COA Segments are structured and can be complex. Certain combinations are not allowed. Rules can be put in place to prevent some bad combinations being created. Analysis codes can be structured into Parents and Grandparents for reporting.


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