General Ledger Expansion

New Chart of Accounts 101Understanding the New Budget Account NumbersOverview of General Ledger Expansion Project

Review of Structural Changes to Account Numbers

Tools

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Overview of General Ledger Expansion Project

OverviewWhy did we change the general ledger (GL) account structure effective December 2013?

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.

Redefine/redesign existing chart of accounts to improve financial reporting capabilities.

Improve/streamline tracking, reconciliation and reporting of financial transactions.

Review of Structural Changes to Account Numbers

OverviewOld Structure:

New Structure:FundDepartmentObject CodeLocationXXX-XXXXXX-XXXX-XX3 Digits6 Digits4 Digits2 DigitsFundDepartmentObject CodeLocationXXX-XXXXXXX-XXXXX-XXX3 Digits7 Digits5 Digits3 Digits

Fund No ChangeFund is still 3 digits in the new structure

Department Add 1 DigitDepartment code expanded from 6 digits to 7 digitsFirst digit signifies the major function of an account:0XXXXXX General1XXXXXX Instruction2XXXXXX Research3XXXXXX Public Service4XXXXXX Academic Support5XXXXXX Student Services6XXXXXX Institutional Support7XXXXXX Student Aid8XXXXXX Operation & Maintenance of Plant9XXXXXX Auxiliary Services

Object Code Add 1 DigitObject code expanded from 4 digits to 5 digits and changes to sequencing for financial reporting purposes.

First digit signifies the type of transaction:1XXXX Assets2XXXX Due to/from Fund3XXXX Liabilities4XXXX Fund Balance5XXXX Revenue6XXXX Expense7XXXX Transfer into Fund8XXXX Transfer out of Fund

ExpensesFirst two digits signify the type of expense:60XXX Salaries & Wages61XXX Supplies & Operations62XXX Services63XXX Employee Benefits64XXX Furniture, Equipment & Other Capital Expenses65XXX Financial Aid and Scholarships66XXX Dues & Fees67XXX Other Expenses68XXX Library Expenses69XXX Debt Service

Location Add 1 Digit Location expanded from 2 digits to 3 digits and changes to sequencing for financial reporting purposes.

Tools

ToolsTo 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 ContactFor further questions, please contact the Controllers Office at (334) 670-3241.

End of Presentation