Kuali Chart of Accounts

Claire Tyson, San Joaquin Delta College

Bill Overman, Indiana University

Kuali (KFS) Chart

• Simple Account Identification Number• Transaction Object Code• Sub Accounts/Sub Object Codes as

Needed• Numerous Attributes Linked to the

Account Identification Number• Multiple Charts if Needed

Purpose of a Chart of Accounts

• What is the primary purpose of a chart of accounts?

• To support and validate entries into a general ledger• Support internal controls

• What other functions does the Kuali chart of accounts serve?

• Document routing and approvals• Framework for budget construction• Reporting, both internal and external

KFS Chart Features

• Chart– Ability to have multiple charts– Charts are hierarchical

• Organization– Hierarchical– Facilitates reporting, workflow, controls

• Account/Sub-Account– Report up through organizations– Allows for further division of an account for internal

reporting purposes

KFS Chart Features

• Object code and sub-object codes– Track expenditure types of categories– Allows for further division of an object for

internal reporting purposes

• Object level codes and object consolidation codes– Provides ability to combine and consolidate

by object groups for reporting

• Extended attributes

KFS Chart Features

• Extended Attributes– Can be used throughout Chart (e.g. Orgs, Accounts, Object

Codes, etc.)

– What is it? • Additional field to “tag” chart objects with a unique identifier

– How to use• Use to “link” chart objects that are not naturally linked for

reporting purposes – i.e. tool for pre-existing reporting requirements that don't fit neatly into hierarchical structure

– Example• Interdepartmental activities, link unrelated organizational

units (cross functional teams, etc.), inter-disciplinary activities

Chart of Accounts at Sample U

SU COA

UA COA West COA East COA Regional COAs

WA COA EA COA

Benefits of Multiple Charts

• Ability to handle complex reporting structures • Campus charts are not required to contain object codes

unrelated to their activities (i.e. Cost of Goods Sold, Inventory, etc.)

• Auxiliary Charts are not required to contain object codes unrelated to their activities (i.e. Tuition, State Appropriations)

• Easy access to campus level or Auxiliary reporting• Increased information and knowledge at the campus

level

Organizations

• Organization– Example: FMOP (Financial Management

Operations)– Collection of accounts and/or other organizations– Some organization features:

• Chart of Accounts, Campus, Department, Responsibility Center, Subunit

• Can include all fund groups• Up to four alphanumeric characters (eg. FMOP)• Extension HRMS table (customizable)

Organization Hierarchy at SU

VPBus

WA

UNIV

FM

FMOPFMSY

Accounts

• Account Number– Specific identifier for a pool of funds assigned to a

specific organization for a specific function.• Example: 1912610 (Financial Management

Administration)

Reports to org FMOP

– All accounts can be self-balancing or can post claim on cash offsets to a control account

Org Hierarchy with Accounts

VPBus

WA

UNIV

FM

FMOPFMSY

19126101912631

Sub-Accounts

• Sub-accounts achieve further division of an account for internal reporting purposes.

• Example: finpr (FM Financial Processing)

Reports to 1912610• Characteristics of a sub-account:

– Account specific

– Assumes all features of the account it reports to

Org Heir with Accounts/Sub Accounts

VPBus

WA

UNIV

FM

FMOPFMSY

19126101912631

reprt finpr

Object Codes

• Object Codes are detailed identifiers for Income, Expense, Asset, Liability and Fund Balances.– Chart specific

– Four numeric digits

– Example 1: West-2000 “Academic Salaries”

East-2000 “Academic Salaries”

– Example 2: West-1504 “Animal Care Income”

East-1504 “Card Services Income”

Sub-Object Codes

• Sub-object codes achieve further division of an object code for internal reporting purposes

• Features of a sub-object include the following:– Specific to an account and object code– Assumes all features of the object code it reports to

• Example: In State Travel Object Code 6000– Faculty Instate Travel, Fac– Staff Instate Travel, Sta– Student Instate Travel, Stu

Levels and Consolidations

• All object codes report to a higher Level code and each Level code reports to a higher Consolidation code

– Approximately 80 Levels (although no limit)– Approximately 20 Consolidations (no limit)– Example:

Object Code 4100 “Office Supplies”

Level S&E “Supplies and Expense”

Consolidation GENX “General Expenses”

Extended Attributes

• Extended Attributes are extensions of an Account that enable:– Search by attribute– Lookup by attribute– Balance inquiry retrieval by attribute– Reporting by attribute

• Extended Attributes can be alpha / numeric.

• They are optional.

Management Control and COA

• How can I use the chart for organizational management?– Flexibility in Reporting

– Flexibility in making Routing decisions

– Hierarchy for Responsibility Management

– Facilitates internal controls by assigning fiscal officers, account managers, supervisors

– Transparency of data to measure performance of departments and subunits

Management Control and COA

• What tools are provided to achieve reporting objectives?– With the Approval of the Chart Manager

• Organizations

• Accounts

• Object codes

– Sub-accounts (budgeting / spending)

– Sub-object codes (budgeting / spending)

– On line balance inquiries and formal reports through use of data warehouse

Creating your own Chart

General questions to consider:• Just because it can be changed, should it?

– What currently works, what doesn’t?– Implications for historical comparisons

• What are the reporting requirements?– Institutional financial reporting (external)– Summarized management reporting– Departmental detail– Ad hoc reporting

Creating your own Chart

Chart questions to consider:• Does the institution need multiple charts?

– For separate campuses– For auxiliary operations– For high level institutional financial reporting

• Will interfaced systems be able to accommodate multiple charts?

• Will it add confusion for users?

Creating your own Chart

Organization questions to consider:• What should be the basis for the organizational

hierarchy?– Lines of authority– Lines of business (disciplines, auxiliaries, etc.)– Financial reporting requirements

• How should the org structure relate to other administrative systems (e.g. HR)?

• Do orgs need to be grouped in a way other than hierarchical?

• How narrowly should org attributes (e.g. type) be defined?

Creating your own Chart

Account questions to consider:• Should existing account structure be preserved or should

entirely new structure be created?• If new structure is used, can a map from old to new be

created?• Should fund/sub-fund attribute perpetuate fund

accounting or represent a different way of grouping accounts?

• Should accounts be self-balancing, or should the institution use the “flexible claim on cash” option?

• How should sub-accounts be used?

CoA Next Steps

• Kuali Demo Labs Tuesday 1 pm

• Kualitestdrive.org

Questions?