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Chart of Accounts Design Consulting Meeting

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Title: Chart of Accounts Design Consulting Meeting


1
Chart of Accounts Design Consulting Meeting
2
Goals
  • Develop segment structure for use with all funds.
  • Determine General Fund segment structure.
  • Determine remaining funds segment structure.
  • Determine number of special revenue funds.
  • Develop long account codes.
  • Determine how account codes will be entered into
    MUNIS.
  • Conversion vs. Manual Entry

3
COA Process Steps
  1. Create long account numbers on paper/spreadsheet
    (All funds).
  2. Approval from MUNIS Project Manager.
  3. Approval from external auditor.
  4. Create abbreviated account format (Organization
    Code).
  5. Enter accounts into MUNIS (manual entry or
    convert).
  6. Training begins on MUNIS modules.

4
Things to Consider
  • The Chart of Account design must be completed in
    order to begin implementation of all other MUNIS
    modules.
  • This process can be very time consuming and
    overwhelming for most customers. But is should
    be realized that delays in completing the COA
    will delay the overall MUNIS implementation.
  • In order to keep the MUNIS implementation on
    schedule, please commit to a completion date and
    provide this date to your MUNIS Project Manager.

5
Chart of Accounts Design
Chart of Accounts Hierarchy It is recommended
that the COA follow a hierarchy, With segments
progressing from general to more detailed in
nature. The following slides demonstrate this
progression in a vertical format.
6
Chart of Accounts Design
7
Chart of Accounts Design
8
Segments
  • Each level of the COA is represented by a
    segment.
  • Each segment can be defined as a different
    length.
  • The combination of segments (maximum of 8) is the
    foundation
  • of the COA.
  • Segments are used for filtering, sorting,
    totaling and subtotaling
  • in reporting.

9
Segments
Full Account Number Full Account Number Full Account Number
1 2 3 4 5 6 7 8 9 10
Fund TBD TBD TBD TBD TBD TBD TBD Object Project
4 digits lt -----------------------------------30 digits----------------------------------- gt lt -----------------------------------30 digits----------------------------------- gt lt -----------------------------------30 digits----------------------------------- gt lt -----------------------------------30 digits----------------------------------- gt lt -----------------------------------30 digits----------------------------------- gt lt -----------------------------------30 digits----------------------------------- gt lt -----------------------------------30 digits----------------------------------- gt 6 digits 5 digits
Total 45 digits Total 45 digits Total 45 digits
10
Segment Definition and Length Examples
Fund Function Division Department Department Sub-Dept Category Open Open
4 3 3 3 3 2 2 1 1
19 digits used 19 digits used 19 digits used 19 digits used 19 digits used
Fund Function Department Department Location Function Grade Category Open
4 3 3 3 3 2 2 1 1
19 digits used 19 digits used 19 digits used 19 digits used 19 digits used
Fund Function Division Dept / Loc Dept / Loc Sub Dept / Function Grade Category Open
4 3 3 3 3 2 2 2 1
20 digits used 20 digits used 20 digits used 20 digits used 20 digits used
11
Segment Definition and Subtotaling

Fund Department In the example to the left, it would be difficult to subtotal all departments which begin with a 1 or a 2 as there is no segment which rolls these segments
0100 100 In the example to the left, it would be difficult to subtotal all departments which begin with a 1 or a 2 as there is no segment which rolls these segments
0100 101 In the example to the left, it would be difficult to subtotal all departments which begin with a 1 or a 2 as there is no segment which rolls these segments
0100 102 In the example to the left, it would be difficult to subtotal all departments which begin with a 1 or a 2 as there is no segment which rolls these segments
0100 103 In the example to the left, it would be difficult to subtotal all departments which begin with a 1 or a 2 as there is no segment which rolls these segments
0100 200 In the example to the left, it would be difficult to subtotal all departments which begin with a 1 or a 2 as there is no segment which rolls these segments
0100 201 In the example to the left, it would be difficult to subtotal all departments which begin with a 1 or a 2 as there is no segment which rolls these segments
0100 202 In the example to the left, it would be difficult to subtotal all departments which begin with a 1 or a 2 as there is no segment which rolls these segments
0100 203 In the example to the left, it would be difficult to subtotal all departments which begin with a 1 or a 2 as there is no segment which rolls these segments
12
Subtotaling

Fund Function Department By including a segment in which information can be subtotaled, the ability to total based on Departments beginning with 1 is simplified. In the example to the left, reporting can be subtotaled by the Function segment.
0100 10 100 By including a segment in which information can be subtotaled, the ability to total based on Departments beginning with 1 is simplified. In the example to the left, reporting can be subtotaled by the Function segment.
0100 10 101 By including a segment in which information can be subtotaled, the ability to total based on Departments beginning with 1 is simplified. In the example to the left, reporting can be subtotaled by the Function segment.
0100 10 102 By including a segment in which information can be subtotaled, the ability to total based on Departments beginning with 1 is simplified. In the example to the left, reporting can be subtotaled by the Function segment.
0100 10 103 By including a segment in which information can be subtotaled, the ability to total based on Departments beginning with 1 is simplified. In the example to the left, reporting can be subtotaled by the Function segment.
0100 20 200 By including a segment in which information can be subtotaled, the ability to total based on Departments beginning with 1 is simplified. In the example to the left, reporting can be subtotaled by the Function segment.
0100 20 201 By including a segment in which information can be subtotaled, the ability to total based on Departments beginning with 1 is simplified. In the example to the left, reporting can be subtotaled by the Function segment.
0100 20 202 By including a segment in which information can be subtotaled, the ability to total based on Departments beginning with 1 is simplified. In the example to the left, reporting can be subtotaled by the Function segment.
0100 20 203 By including a segment in which information can be subtotaled, the ability to total based on Departments beginning with 1 is simplified. In the example to the left, reporting can be subtotaled by the Function segment.
13
More on Subtotaling

Fund Function Department Division Activity
0100 10 100 10010 825
0100 10 101 10110 830
0100 10 102 10210 910
0100 10 103 10310 910
0100 20 200 20010 722
0100 20 201 20110 910
0100 20 202 20210 722
0100 20 203 20310 830
14
Sorting
MUNIS uses alphabetic sorting rules (spaces, numbers, A, a). MUNIS uses alphabetic sorting rules (spaces, numbers, A, a).
_9
05 Take note of how information will be sorted, this will become important in how reports will have accounts ordered! Any blank will come before zeroes (it is not recommended to use blanks!) Size matters! If a segment length is 3 characters, be consistent with the length. Information sorts by position. Capital letters come before lower case letters
1 Take note of how information will be sorted, this will become important in how reports will have accounts ordered! Any blank will come before zeroes (it is not recommended to use blanks!) Size matters! If a segment length is 3 characters, be consistent with the length. Information sorts by position. Capital letters come before lower case letters
10 Take note of how information will be sorted, this will become important in how reports will have accounts ordered! Any blank will come before zeroes (it is not recommended to use blanks!) Size matters! If a segment length is 3 characters, be consistent with the length. Information sorts by position. Capital letters come before lower case letters
11 Take note of how information will be sorted, this will become important in how reports will have accounts ordered! Any blank will come before zeroes (it is not recommended to use blanks!) Size matters! If a segment length is 3 characters, be consistent with the length. Information sorts by position. Capital letters come before lower case letters
12 Take note of how information will be sorted, this will become important in how reports will have accounts ordered! Any blank will come before zeroes (it is not recommended to use blanks!) Size matters! If a segment length is 3 characters, be consistent with the length. Information sorts by position. Capital letters come before lower case letters
123 Take note of how information will be sorted, this will become important in how reports will have accounts ordered! Any blank will come before zeroes (it is not recommended to use blanks!) Size matters! If a segment length is 3 characters, be consistent with the length. Information sorts by position. Capital letters come before lower case letters
13 Take note of how information will be sorted, this will become important in how reports will have accounts ordered! Any blank will come before zeroes (it is not recommended to use blanks!) Size matters! If a segment length is 3 characters, be consistent with the length. Information sorts by position. Capital letters come before lower case letters
2 Take note of how information will be sorted, this will become important in how reports will have accounts ordered! Any blank will come before zeroes (it is not recommended to use blanks!) Size matters! If a segment length is 3 characters, be consistent with the length. Information sorts by position. Capital letters come before lower case letters
20000 Take note of how information will be sorted, this will become important in how reports will have accounts ordered! Any blank will come before zeroes (it is not recommended to use blanks!) Size matters! If a segment length is 3 characters, be consistent with the length. Information sorts by position. Capital letters come before lower case letters
21 Take note of how information will be sorted, this will become important in how reports will have accounts ordered! Any blank will come before zeroes (it is not recommended to use blanks!) Size matters! If a segment length is 3 characters, be consistent with the length. Information sorts by position. Capital letters come before lower case letters
22A Take note of how information will be sorted, this will become important in how reports will have accounts ordered! Any blank will come before zeroes (it is not recommended to use blanks!) Size matters! If a segment length is 3 characters, be consistent with the length. Information sorts by position. Capital letters come before lower case letters
22a Take note of how information will be sorted, this will become important in how reports will have accounts ordered! Any blank will come before zeroes (it is not recommended to use blanks!) Size matters! If a segment length is 3 characters, be consistent with the length. Information sorts by position. Capital letters come before lower case letters
Take note of how information will be sorted, this will become important in how reports will have accounts ordered! Any blank will come before zeroes (it is not recommended to use blanks!) Size matters! If a segment length is 3 characters, be consistent with the length. Information sorts by position. Capital letters come before lower case letters
22a Take note of how information will be sorted, this will become important in how reports will have accounts ordered! Any blank will come before zeroes (it is not recommended to use blanks!) Size matters! If a segment length is 3 characters, be consistent with the length. Information sorts by position. Capital letters come before lower case letters
15
COA Design Steps
  1. Define Segment Structure
  2. Build Segment Codes
  3. Combine Segments 1-8
  4. Define Organizational Codes
  5. Define Object Codes
  6. Define Full Accounts

16
Building Accounts Step One Defining overall
segment structure
  • Segment 1 Fund 4 digits
  • Segment 2 __________ - ____ digits
  • Segment 3 __________ - ____ digits
  • Segment 4 __________ - ____ digits
  • Segment 5 __________ - ____ digits
  • Segment 6 __________ - ____ digits
  • Segment 7 __________ - ____ digits
  • Segment 8 -- __________ - ____ digits

17
Building Accounts Step Two Defining individual
segments
Seg Value Short Description (10) Long Description (30)
1 0100 Gen Fund General Fund
1 0200 Town SR Town Special Revenue
2 10 Gen Gov General Government
2 20 Pub Saf Public Safety
2 30 Culture Culture and Recreation
3 111 Council City Council
3 211 Police Police
3 311 Library Public Library
4 30 Main Main Library
4 31 Branch Branch Library
18
Building Accounts Step Three Combining
segments 1 - 8
Fund Function Dept Division Description
0100 10 111 00 City Council
0100 20 211 00 Police Department
0100 30 311 30 Main Library
0100 30 311 31 Branch Library
19
Building Accounts Step Four Defining Object
Codes
Code Acct Type Bal Type Short Desc (10) Long Description (30)
10400 B A Cash Cash
21100 B L AP Accounts Payable
35900 B U Fund Bal Fund Balance
43000 R Fees Fees
51100 E FT Sal Full-Time Salaries
51300 E Overtime Overtime
53500 E Comm Communications
55100 E Supplies Office Supplies
58310 E Equipment Equipment
20
Building Accounts Step Five Defining Full
Accounts
Fund Func Dept Div Object Full Description
0100 30 311 30 51100 Main Library FT Salaries
0100 30 311 30 51300 Main Library Overtime
0100 30 311 30 55100 Main Library Supplies
0100 30 311 31 51100 Branch Library FT Salaries
0100 30 311 31 51300 Branch Library Overtime
0100 30 311 31 55100 Branch Library Supplies
The full account number is the combination of the
first 8 segments and the object (and the
project).
21
Building Accounts Step Six Creating ORG Codes
  • The Organization (Org) Code is a abbreviation of
    the 8 segments in the COA. It is a nick name
    or short cut to the 8 segments, designed to
    assist end users in data entry
  • The Org Code needs to be unique to the 8 segments
    which is represents.
  • Size matters, the Org Code is meant to be a
    short cut and has a maximum size of 8
    characters.
  • The Org Code can be a mixture of alpha and
    numeric characters.
  • Like the segments structure size, consistency and
    sort considerations should be made

22
Building AccountsStep SixCreating Org Codes
Full Account Number Full Account Number Full Account Number
Seg 1 Seg 2 Seg 3 Seg 4 Seg 5 Seg 5 Seg 6 Seg 7 Seg 8
Fund TBD TBD TBD TBD TBD TBD TBD TBD Object Project
4 digits lt -----------------------------------30 digits----------------------------------- gt lt -----------------------------------30 digits----------------------------------- gt lt -----------------------------------30 digits----------------------------------- gt lt -----------------------------------30 digits----------------------------------- gt lt -----------------------------------30 digits----------------------------------- gt lt -----------------------------------30 digits----------------------------------- gt lt -----------------------------------30 digits----------------------------------- gt lt -----------------------------------30 digits----------------------------------- gt 6 digits 5 digits
Total 45 digits Total 45 digits Total 45 digits Total 45 digits

ORG Number ORG Number
Seg 1 Seg 2 Seg 3 Seg 4 Seg 4 Seg 5 Seg 6 Seg 7 Seg 8
4 digits lt -------------------------------------30 digits------------------------------------ gt lt -------------------------------------30 digits------------------------------------ gt lt -------------------------------------30 digits------------------------------------ gt lt -------------------------------------30 digits------------------------------------ gt lt -------------------------------------30 digits------------------------------------ gt lt -------------------------------------30 digits------------------------------------ gt lt -------------------------------------30 digits------------------------------------ gt lt -------------------------------------30 digits------------------------------------ gt
8 digits
23
Building AccountsStep SixCreating Org Codes
Org Number Object Project Account Org Number Object Project Account Org Number Object Project Account Org Number Object Project Account Org Number Object Project Account Org Number Object Project Account Org Number Object Project Account Org Number Object Project Account Org Number Object Project Account Org Number Object Project Account Org Number Object Project Account
Seg 1 Seg 2 Seg 3 Seg 4 Seg 5 Seg 6 Seg 7 Seg 8 Seg 8
Fund TBD TBD TBD TBD TBD TBD TBD TBD Object Project
lt -----------------------------------8 characters----------------------------------- gt lt -----------------------------------8 characters----------------------------------- gt lt -----------------------------------8 characters----------------------------------- gt lt -----------------------------------8 characters----------------------------------- gt lt -----------------------------------8 characters----------------------------------- gt lt -----------------------------------8 characters----------------------------------- gt lt -----------------------------------8 characters----------------------------------- gt lt -----------------------------------8 characters----------------------------------- gt lt -----------------------------------8 characters----------------------------------- gt 6 digits 5 digits

The Org code is married to an object code (and a possible project code) to be a valid account. The Org code represents the 8 segments in the account so that all 8 segments do not need to be keyed during transaction entry. The Org code is married to an object code (and a possible project code) to be a valid account. The Org code represents the 8 segments in the account so that all 8 segments do not need to be keyed during transaction entry. The Org code is married to an object code (and a possible project code) to be a valid account. The Org code represents the 8 segments in the account so that all 8 segments do not need to be keyed during transaction entry. The Org code is married to an object code (and a possible project code) to be a valid account. The Org code represents the 8 segments in the account so that all 8 segments do not need to be keyed during transaction entry. The Org code is married to an object code (and a possible project code) to be a valid account. The Org code represents the 8 segments in the account so that all 8 segments do not need to be keyed during transaction entry. The Org code is married to an object code (and a possible project code) to be a valid account. The Org code represents the 8 segments in the account so that all 8 segments do not need to be keyed during transaction entry. The Org code is married to an object code (and a possible project code) to be a valid account. The Org code represents the 8 segments in the account so that all 8 segments do not need to be keyed during transaction entry. The Org code is married to an object code (and a possible project code) to be a valid account. The Org code represents the 8 segments in the account so that all 8 segments do not need to be keyed during transaction entry. The Org code is married to an object code (and a possible project code) to be a valid account. The Org code represents the 8 segments in the account so that all 8 segments do not need to be keyed during transaction entry. The Org code is married to an object code (and a possible project code) to be a valid account. The Org code represents the 8 segments in the account so that all 8 segments do not need to be keyed during transaction entry. The Org code is married to an object code (and a possible project code) to be a valid account. The Org code represents the 8 segments in the account so that all 8 segments do not need to be keyed during transaction entry.
?-----ORG CODE ----?
24
Special Revenue Funds
  • Two options to bring funds into MUNIS
  • Consolidate existing Funds
  • Need a segment to identify the Grant/Funding
    source
  • Balance sheet will lump all funding sources
    unless chose to balance to the segment
    representing the Grant/funding source (defined in
    MUNIS as a subfund)
  • Separate existing Funds
  • Use MUNIS 4 digit fund number to identify funding
    source
  • Will result in an increase of funds
  • Will require DT/DF records (one time set up for
    each fund)
  • Balance sheet will represent the single funding
    source.

25
Rules to Remember
  • Accounts must be presented in alpha-numeric order
    on the spreadsheet for ease in review.
    Alpha-numeric order should also represent the
    desired organized reporting order.
  • Long accounts must be completed prior to the
    definition/completion of abbreviated Org Obj
    accounts.
  • Abbreviated accounts must follow the same numeric
    order as long accounts.
  • ALL accounts across ALL funds must be defined
    prior to training.

26
Other Accounts to Consider
  • Due to/Due Froms
  • Control Accounts
  • Fixed Assets
  • Payroll Liabilities and Expenses

27
Due To / Due From Rules
  • The org/objects in the DT/DF table must exist in
    the COA.
  • Every fund pairing must exist in the DT/DF table
    where a fund pays/receives money from another
    fund. If subfunds are being used, this means
    DT/DF must exist for each subfund as well.

28
Due To / Due From Options
  • Classic DT/DF Gen Fund has unique object codes
    for Due Tos and Due Froms for each other fund.
    I.e., Fund 2 DT, Fund 2 DF, Fund 3 DT, Fund 3 DF,
    etc. All other funds have a DT Gen Fund object
    and a DF Gen Fund object.
  • Consolidated / Control Account One object code
    is used throughout the funds. This is the only
    object code used in the DT/DF table. Result
    always sums zero.
  • Combine Classic and Control Some funds have
    cash accounts - use control. Some funds dont
    have cashaccounts use DT/DF.
  • Treasury Fund A separate fund that holds all of
    the cash accounts, then it will create DT/DF
    entries for every transaction to its appropriate
    fund.

29
Control Accounts
  • These accounts are entered into the Fund
    Attribute Table (see COA spreadsheet).
  • These are all Balance Sheet Accounts
  • Each fund has Control Accounts
  • Fund / Object only. Set up to pertain to the
    fund as a whole, so the Fund is the only segment
    defined.

30
Fixed Assets Account Groups
  • Governmental and Propriety Fixed Assets Groups
    are required for Fixed Assets. Within these
    groups, each capitalized Asset requires the
    following 4 accounts
  • Asset Account
  • Contra Account (usually Fund Balance or Retained
    Earnings)
  • Accumulated Depreciation
  • Depreciation
  • Accumulated Depreciation and Assets should be
    broken down into their major functions as per
    GASB 34

31
Expense/Liability for Payroll
  • MUNIS payroll can use the expense org from the
    employees pay records to post to the benefit
    expenses.
  • In this example, the benefits object and pay
    object will be different.
  • If this option is chosen, benefit expense object
    codes must be built with each employee pay org
    code in the COA.
  • The expense orgs are the same unless there is one
    org that all employee benefits come from (as
    opposed to a different org per dept).

32
Expense/Liability for Payroll
  • Payroll withholdings (liabilities) can also
    follow the same logic as expenses.
  • Withholdings can be posted to a single fund or be
    posted to the same fund in which the employees
    expenses are charged.
  • If the option is chosen to post withholdings to
    the fund the employees expense is charged, then
    withholding object codes must be built within
    each fund in the COA.
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