Oracle
General Ledger
&
Chart of Accounts
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
SM~111030
Oracle SubInvoices
Ledgers
Simplified
In
Payments Out
Orders Out
PURCHASING
Invoices In
PAYABLES
POST
CASH MANAGEMENT POST GENERAL LEDGER
POST
PROJECTS
POST
RECEIVABLES
Invoices Out
Orders In
Receipts In
Invoices Out
This is not a complete picture, but gives a general overview of the posting of
transactions between Subledgers and General Ledger
Oracle SubInvoices
Ledgers
Simplified
In
Payments Out
Orders Out
PURCHASING
Invoices In
PAYABLES
CASH MANAGEMENT POST GENERAL LEDGER
RECEIVABLES
POST
PROJECTS
Invoices Out
Orders In
Receipts In
Invoices Out
This is not a complete picture, but gives a general overview of the posting of
transactions between Subledgers and General Ledger
GENERAL LEDGER
•Payroll
•Journal Adjustments
•FSG Reporting
•Open/Close Periods
•New Segments (accounts)
•Cross Validation
•Combinations
Reliable Information for External
Reporting
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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
Chart of Accounts
5 Segments
1.
Company-
2.
3.
4.
COST CENTREANALYSIS CODEACCOUNT-
5.
Spare
e.g. 10-11000-AA11000100-11111-100000
CU-MEDIC-GENERAL-PROF_SALARY-SPARE
Combinations
Disabled
Cost Centres
10-11000-AA11000100-11111-100000
Schools / Dir
Cost Centre = Department
11
11000
MEDIC Central
11100
MEDIC Haematology
11110
MEDIC Pathology
11120
MEDIC Medical Genetics
11130
MEDIC EMU Unit
MEDIC
Group1
111%
Group2
112%
11200
15
SONMS
15100
SONMS
631
FINCE
63100
Finance
63150
Purchasing
11210
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
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.
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 7th and/or 8th 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.
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”
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
40115 Consumables
48175 Overheads
Taxable Surplus
£
(17,000)
3,000
4,250
(9,750)
Chart of Accounts
Combination Rules
Income and Expenditure
e.g. 11000 - AA11000100 – 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
AA-AJ
Academic departments TPA
(AC)
AK-AZ
Academic departments Other
BA_BF
Academic and Administrative Courses
BQ
Education Contracts TPA
BV_BZ
Academic Studentships
C
Academic Services
D
Staff & Student Facilities
E
Admin
(AD)
F
Premises
(PR)
G
CSERV
I
Income CENTRAL
K
Academic Conferences
L
Services Rendered/Consultancy PROJECTS
M
Services Rendered/Consultancy
N
Salary-based recharges
R
Research Grants & Contracts PROJECTS
S
European Structural Funds PROJECTS
Y
Balance sheet
(S)
(KC)
Analysis
Code
Types
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.
Account Ranges
1%
7%
10-11000-AA11000100-11111-100000
10000 19999
Salaries
40000 47999
Direct expenditure
70000 79999
External income
Account Structure10-11000-AA11000100-11111-100000
1%
2%
7%
10000 19999
20000 29999
Salaries
Salary recharges
40000 47999
48000 49999
Direct expenditure
Recharges / Overheads [internal]
68000 68999
Recharges / Overheads [internal]
69000 69099
69100 69999
70000 79999
Allocations
Internal Trade
External income
Account Structure10-11000-AA11000100-11111-100000
0%
1%
2%
3%
5%
7%
00000
10000
20000
30000
40000
48000
50000
60000
68000
69000
69100
70000
80000
09999
19999
29999
39999
47999
49999
59999
67999
68999
69099
69999
79999
99999
Brought Forward Balances
Salaries
Staff
Salary recharges
Spare
Direct expenditure
Recharges / Overheads [internal]
Spare
Non Staff
Spare
Recharges / Overheads [internal]
Allocations
Internal Trade
External income
Balance sheet
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)
Account Structure
Direct Income and Expenditure
Income
70000
79999
Expenditure
10000
19999
40000
47999
External Income
Salaries
External (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
Account Structure Examples
Recharges / Overheads [internal]
Dr
Cr
48150 FEC:ESTATES COSTS
48160 FEC:INDIRECT COST
48175 OVERHEADS
68150
48200 BALANCE TRANSFERS TO CLOSE
48500 TRANSFERS OF FUNDS
68200
68500
68160
68175
48% Accounts must match with 68% Accounts and net off to Nil within a
journal transfer and therefore not effecting the Statutory Financial
Statements.
Account Structure Examples
Recharges / Overheads [internal]
Dr
21111 RCHG PROFESSOR FT PERM
69010 ALLOCATIONS
2% Accounts (salary recharges) are used alone and net off to nil.
690% Accounts (allocations) are used alone and net of to nil.
Cr
21111
69010
Account Structure Examples
Internal Trade
Dr
40115 CONSUMABLES
Cr
69100
40130 GASES (LABORATORY)
69100
43520 LABOUR RECHARGES (Estates)
69550
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
Estates have their own internal trade accounts e.g. 69550 – 69559
CSERV also have their own internal trade accounts in the 6952% range.
Account Structure
Re-instate balances
00000
09999
Finance 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.
Account Structure
Balance sheet
80000
80999
82000
82999
85000
85999
90000
99999
Fixed asset
Current assets
Liabilities
Capital & reserves
Schools and Directorates should not post to these accounts
Account Structure – ReCap
7%
70000
79999
External income
Direct
40000
47999
Direct expenditure
Direct
69100
69999
Internal Trade
Recharged (net off)
1%
10000
19999
Salaries (Rhian)
Direct (Cyborg)
2%
20000
29999
Salary recharges (Schools) DR & CR on 2%
48%
48000
48999
Recharges / Overheads
[internal]
68%
0%
Use 68% and 48%
together
68000
68999
Recharges / Overheads
[internal]
69000
69099
Allocations (Jo)
DR & CR on 690%
00000
09999
Brought Forward Balances
(Jo & Steve + Schools)
DR & CR on 0%
80000
99999
Balance sheet
Account Structure - Salaries
There is an underlying structure to Salary Accounts that facilitates the complex
reporting required for external and internal purposes.
Accounts
Character
have 5
characters
1
2
3
4
5
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.