1. Chart of Accounts Bill Overman, Indiana University

2. 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

3. 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

4. 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

5. 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 )

6. Accounts Contract and grant account parameters

7. 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)

8. C&G account, monthly amount view: C&G account, accumulated amount view: Non-C&G account, monthly amount view:

9. 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

10. 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

11. 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.

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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

21. 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

22. 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

23. Sufficient Funds Attributes on an Account Document

24. 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)

25. 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

26. 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

27. 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

28. Decision Support Year-End snapshots –Or more frequent? Adding object codes from top level chart to general ledger balance and general ledger entry datagroups