coa definitions june 10, 2015. the proposed rutgers chart of accounts structure comprises nine...
TRANSCRIPT
COA Definitions
June 10, 2015
The proposed Rutgers Chart of Accounts structure comprises nine segments used to satisfy financial reporting requirements
Segment Purpose
UNIT Balancing segment; represents the individual schools and organizations within Rutgers
DIVISION Used to group unit, org and location based on the management view
ORGANIZATIONValue which represents a material manager of people and space within the organization (3+ resources used as guideline)
LOCATIONIdentifies the location where the financial transaction is serviced (e.g., on campus, off campus, online)
FUND TYPE Identifies the funding source used to acquire goods & services
ACCOUNT Balance Sheet and Income Statement transactional accounts – represents the “what”
BUSINESS LINERepresents a line of business or mission of the university. Individual P&L reports can be generated. Resources may be assigned to a business line when not part of a larger org
ACTIVITY Used for interdisciplinary project cost tracking
FUTURE Reserved for future use
Unit (3)
Division (4)
Organization(4)
Location (4)
Fund Type (3)
Account (5)
Business Line (4)
Activity (4)
Future (5)
Unit Segment Details
Unit (3)
Division (4)
Organization(4)
Location (4)
Fund Type (3)
Account (5)
Business Line (4)
Activity (4)
Future (5)
Definition & UseSchool, Institution, Center and/or Central Unit which is required to produce a balanced Balance Sheet
Expect to align with Responsibility Centers (RC)
Accounting Transactions
• Will serve as the balancing segment.
• Each transaction must balance; debits equal credits within the unit.
• Will require due to/from account relationships if data needs to be transacted between units, such as between SEBS and SAS (Intercompany transactions)
• The GL will be configured to generate the due to/ due from transactions automatically
• Mandatory value
Reporting Considerations
Profit/Loss and balanced Balance Sheet by Unit
Configuration Child values numeric; Parent values Alpha
Volume <100
Unit (3)
Division (4)
Organization(4)
Location (4)
Fund Type (3)
Account (5)
Business Line (4)
Activity (4)
Future (5)
Definition & Use
Used to group Organizations into hierarchies for management reporting
Examples: Humanities, English, Clinical Affairs, Medical Imaging Services, Office of the Dean, etc.
Division is a rollup of the Unit/Org/Location similar to the EBRC in Oracle. The future state Divisions will be provided by the individual businesses as they group their new org values and map the legacy orgs to the new design
Accounting Transactions
Mandatory
Reporting Considerations
Supports management reporting views for the different units
P&L and balance sheet reporting will be available
Configuration Child values numeric; Parent values Alphanumeric
Volume Approx. 200
Division Segment Details
Organization Segment Details
Definition & Use
• Represents the lowest level of cost capture for headcount and space.
• The organization is flat and has shared values which can be grouped by division to reduce redundancies (e.g., one Dean’s Office value shared across multiple units and divisions.
• Flat organization provides the flexibility to see total cost for a single organization across the university.
• Requires commonality including language (value description) and purpose (use) for each value.
• For numbering purposes, a general hierarchy is in place grouped by high level purpose (e.g., Instructional, Medical, Student Support, Institutional Support, etc.), but each unit will have the ability to use the combination of unit, division and location as necessary.
Accounting Transactions
Mandatory
Reporting Considerations
Supports management and operational reporting views for the different units
Used for budgeting and forecasting
Primarily used for P&L, although some balance sheet posting may be allowed
ConfigurationChild posting values will be numeric
Parent (rollup) values will be alphanumeric
Volume TBD, but expect between 1,000 and 1,200
Unit (3)
Division (4)
Organiza-tion(4)
Location (4)
Fund Type (3)
Account (5)
Business Line (4)
Activity (4)
Future (5)
Location Segment Details
Unit (3)
Division (4)
Organization(4)
Location (4)
Fund Type (3)
Account (5)
Business Line (4)
Activity (4)
Future (5)
Definition & Use
• Identifies the area where the revenue and/or costs are serviced including onsite, off-site, online and foreign locations.
• Useful in identifying true costs for a responsibility center when spread across multiple locations.
• Can be used for identifying clinic locations or specific locations where work is being performed.
Accounting Transactions
Mandatory
Reporting Considerations
Profit/Loss and partial Balance Sheet
ConfigurationChild posting values will be numeric
Parent (rollup) values will be alphanumeric
Volume < 100
Fund Type Segment Details
Unit (3)
Division (4)
Organization(4)
Location (4)
Fund Type (3)
Account (5)
Business Line (4)
Activity (4)
Future (5)
Definition & Use Identifies the funding source used to acquire goods and services. Examples include: Unrestricted, Restricted, Endowment, Plant, Loan, Auxiliary
Accounting Transactions
Mandatory
Reporting Considerations
Profit/Loss and potentially will be used as the secondary balancing segment in Oracle GL
ConfigurationChild posting values will be numeric
Parent (rollup) values will be alphanumeric
Volume 40-50
Account Segment Details
Unit (3)
Division (4)
Organization(4)
Location (4)
Fund Type (3)
Account (5)
Business Line (4)
Activity (4)
Future (5)
Definition & Use Represents the “what” of the transaction - i.e., what line item does this transaction apply to in the financial statements
Accounting Transactions
Mandatory
Reporting Considerations
Grouped by AFS as the primary hierarchy with additional groupings for internal financial view available in the detail below. Alternate views will be accommodated through report design. Full Balance Sheet and P&L
Configuration
• Use numeric values for transaction processing• Use alphanumeric values for parents (e.g. ‘T’ or ‘P’ to indicate a parent roll up)• Use all alpha characters for statistical accounts• Follow logical numbering (1XXXX for Asset; 2XXXX for Liability; 3XXXX for Equity; 4XXXX for
Revenue; 5XXXX and 6XXXX for Operating Expense; 7XXXX for G&A; 8XXXX and 9XXXX for Non-Operating Expenses)
VolumeTargeting < 1000
Ongoing review by the business to close unused accounts and consolidate
Business Line Segment Details
Unit (3)
Division (4)
Organization(4)
Location (4)
Fund Type (3)
Account (5)
Business Line (4)
Activity (4)
Future (5)
Definition & Use
Required to be populated to identify the specific line of business (or mission) being offered. The lower values are being determined. Examples of high level values are: Instructional, Research, Healthcare, Public Service, Academic and School Support, Student Services, Auxiliary Enterprises, etc.
Accounting Transactions
Optional – not all transactions will have a business line, particularly on the balance sheet
Reporting Considerations
Profit/Loss and partial Balance Sheet will be available as well as management and operational reporting
ConfigurationChild posting values will be numeric
Parent (rollup) values will be alphanumeric
Volume TBD based on business feedback
Activity Segment Details
Unit (3)
Division (4)
Organization(4)
Location (4)
Fund Type (3)
Account (5)
Business Line (4)
Activity (4)
Future (5)
Definition & Use To identify total activity of high-level, interdisciplinary and strategic initiatives that span across multiple responsibility centers/units.
Accounting Transactions
Optional
Reporting Considerations
Specific management reporting only
Configuration• Use numeric values for transaction processing• Use alphanumeric values for parents (e.g. ‘T’ or ‘P’ to indicate a parent roll up)• Use all alpha characters for statistical accounts
Volume Minimal; fewer than 15 identified to date
Future Segment Details
Unit (3)
Division (4)
Organization(4)
Location (4)
Fund Type (3)
Account (5)
Business Line (4)
Activity (4)
Future (5)
Definition & Use Reserved for future needs
Accounting Transactions
Optional – will default as ‘00000’ unless it is configured with other values
Reporting Considerations
None
Configuration Numeric
Volume 1 - Default value