Presentation on theme: "New Chart of Accounts 101 Understanding the New Budget Account Numbers Overview of General Ledger Expansion Project Review of Structural Changes to."— Presentation transcript:
Overview Why did we change the general ledger (GL) account structure effective December 2013? 1. Expand the number of available digits in the department, object and location code fields to allow future growth. We were running out of room in these categories. 2. Redefine/redesign existing chart of accounts to improve financial reporting capabilities. 3. Improve/streamline tracking, reconciliation and reporting of financial transactions.
Overview Old Structure: New Structure: FundDepartment Object CodeLocation XXX-XXXXXX-XXXX-XX 3 Digits6 Digits4 Digits2 Digits FundDepartment Object CodeLocation XXX- XXXXXX X - XXXX X - XX X 3 Digits7 Digits5 Digits3 Digits
Fund – No Change Fund is still 3 digits in the new structure
Department – Add 1 Digit Department code expanded from 6 digits to 7 digits First digit signifies the major function of an account: 0XXXXXX – General 1XXXXXX – Instruction 2XXXXXX – Research 3XXXXXX – Public Service 4XXXXXX – Academic Support 5XXXXXX – Student Services 6XXXXXX– Institutional Support 7XXXXXX– Student Aid 8XXXXXX – Operation & Maintenance of Plant 9XXXXXX – Auxiliary Services
Object Code – Add 1 Digit Object code expanded from 4 digits to 5 digits and changes to sequencing for financial reporting purposes. First digit signifies the type of transaction: 1XXXX – Assets 2XXXX – Due to/from Fund 3XXXX – Liabilities 4XXXX – Fund Balance 5XXXX – Revenue 6XXXX– Expense 7XXXX– Transfer into Fund 8XXXX – Transfer out of Fund
Expenses First two digits signify the type of expense: 60XXX – Salaries & Wages 61XXX – Supplies & Operations 62XXX – Services 63XXX – Employee Benefits 64XXX – Furniture, Equipment & Other Capital Expenses 65XXX – Financial Aid and Scholarships 66XXX– Dues & Fees 67XXX– Other Expenses 68XXX– Library Expenses 69XXX– Debt Service
Location – Add 1 Digit Location expanded from 2 digits to 3 digits and changes to sequencing for financial reporting purposes.
To assist departments with their new account structure a GL Conversion Tool is available on the TROY intranet: https://forms.troy.edu/cgi-bin/downloadReports.pl?ITM/REPORTS/Finance/NonFBA/index.htm It allows you to look up old numbers to find the new number or vice versa. It provides an alphabetical list of frequently used expense codes for budget purposes that can be searched by name.
Point of Contact For further questions, please contact the Controller’s Office at (334) 670-3241.