Oracle Accounting Structure

1. Oracle Accounting Structure Oracle Accounting Structure B

2. Oracle Accounting Structure The accounting structure encompasses the use of two Oracle applications Oracle Grants Accounting Oracle General Ledger B

3. Oracle Accounting Structure • GL is a true accounting system • debits equal credits • constitutes UAB’s official accounting books • operates on a fiscal year basis Oracle General Ledger B

4. Oracle Accounting Structure • GA is a project management application • not another general ledger application, but summarizes balanced transactions to Oracle General Ledger • project costing application • tracks costs on a project-to-date basis • provides flexibility in managing detail project cost information Oracle Grants Accounting B

5. Oracle Accounting Structure Oracle General Ledger Application F

6. Oracle GL Segments Six Segments Accounting Key AccountString Object Code Future Organization Subaccount Balancing Account F

7. Oracle GL Segment: Account • Account • Identifies primary activity for which money is being spent • 7 digits • Some minimal range blocking per one-digit prefix: • 0 – Balance sheets • 1 – Revenue & transfers in only • 2 – Expense & transfers out only • 3-5 – All income statement object codes • 6 – Plant project GA Summary Accounts • 7 – Hospital income statement accounts other than GA Summary Accounts • 8-9 – Grant project GA Summary Accounts • No official blocking in the suffixes F

8. Oracle GL Segment: Subaccount • Subaccount • An account can be broken down to track one or more activities, tasks, time periods, or allocations • Subaccount has no meaning except within context of a specific "account segment" (i.e. "dependent segment") • 3 digits • Defaults to 000 • Most at discretion of the user departments, but some reserved for institutional use • Only Hospital will utilize this segment initially F

9. Oracle GL Segment: Balancing Segment • Balancing Segment • Indicates the level at which UAB chooses to carry a balance sheet, whether for internal or external purposes • Segment value vs attribute • Attribute in FAS • Oracle requires it be a segment • 9 digits • Two-digit prefix indicates the internal functional grouping (General Operating Funds, Restricted Gift Accounts, Pure Endowment Funds, Funded Depreciation Reserves, etc.) • Seven-digit suffix same as Account segment value if one-to-one relationship between income statement and balance sheet; otherwise, does not match Account segment value F

10. Oracle GL Segment: Organization • Organization • Identifies the organizational unit with which has primary fiscal responsibility for the Account String • Segment value vs attribute • Attribute in FAS • End user focus group requested it be a segment • Certain Oracle functionality is dependent upon Organization being a segment (e.g., security, workflow, online views, reports) • 9 digits • Segment value blocking: First two digits similar to current Affiliation Code; first five digits Department; first seven digits Division; all nine digits new Subdivision F

11. Oracle GL Segment: Future • Future • Reserved to meet future requirements • Minimizes impact of adding an additional GL segment later • 4 digits • Defaults to 0000 F

12. Oracle GL Segment: Object Code • Object Code • Categorizes the nature of the dollars as a specific type of revenue, expense, asset, etc. • For example: Salaries & Wages, Accounts Payable, Drugs, Tuition Revenue • Required by Oracle to be a segment • 7 digits • Blocked into ranges 1-2-2-2 F

13. Oracle GL Segment: Object Code Current FAS Structure XXXXX Indicates Balance Sheet or Income Statement Primary Range Last digit can also be used as a secondary object code Identifies Asset, Liability, Fund Balance, Revenue or Expense F

14. Oracle GL Segment: Object Code Proposed Oracle Structure XXXXXXX Major Range Identifies Assets, Liabilities, Net Assets, Transfers, Revenues, or Expenses Lowest level of categorization EX: Sutures Minor Detail Range Identifies further breakdown of minor summary range EX: Med/Surg Supplies Minor Summary Range Identifies categories of major range EX: Supplies F

15. Oracle GL Accounting Structure: Recap • The GL Accounting Key a five-segment Account String followed by an Object Code segment. • It is all numeric. • Each segment is separated by a period/decimal. • Total number of segment value digits is 39 characters (without the decimals). F

16. Oracle GL Segment Structure Accounting Key AccountString 1234567 . 000 . 123456789 . 123456789 . 0000 . 1234567 Object Code Organization Account Subaccount Future Balancing Segment F

17. Oracle Accounting Structure Oracle Projects/Grants Accounting Application D

18. Oracle GA Segments Five Segments Project Key Project String Task Project Award Organization Expenditure Type P T A O E D

19. Oracle GA Segments • Project String – Relationship of PTAOE Values • Project – The work performed • Task – Further breakdown of work • Award – Funding source • Organization – Type of String, and University vs Hospital • Expenditure Type – Similar to GL Object Code D

20. Oracle GA Segments • Project Key constitutes the “charging instructions” • Project – The work performed • Task – Further breakdown of work • Award – Funding source • Organization – Type of string, and University vs Hospital • Expenditure Type – Similar to GL Object Code D

21. Oracle GA Segments • Project • Unit of work • Is broken down into one or more tasks • Can be used to tie together several awards (for plant projects, will be used for summarizing a Facilities “project”) • 6 digits, automatic numbering D

22. Oracle GA Segments • Task • Provides further breakdown of work performed under Project • Expenditures are recorded at lowest Task level • Breaks Award and Project into pieces (i.e., today’s scope accounts organized as Tasks and related to particular Project) • Top level Task affiliation will be org unit mapped to GL • Flexibility to create Sub-Tasks to further breakdown Tasks • 5 characters (including one decimal) D

23. Oracle GA Segments • Award • Funding source • The sponsor’s award/departmental cost sharing portion of funding (not yet clear how this segment will be used for plant projects) • Primary collection of attributes (e.g., responsible person, effective dates, etc.) • 7 digits, automatic numbering D

24. Oracle GA Segments • Organization • Identifies the major component unit (University vs. Hospital) and also the type of account (Sponsored Grant vs Cost Sharing vs Grant Related Income vs Capital Construction vs Noncapital Renovation vs Real Estate Purchase Projects vs Fixed Equipment System Projects) • For summarization to the Oracle GL, the true Organization on transactions will be at the top level Task • 2 digits D

25. Oracle GA Segments • Expenditure Type • Equivalent to Object Code in Oracle GL • Categorizes the nature of the dollars as a specific type of asset, liability, balance, transfer, revenue, expense • For example: Architect Fees, Construction Materials, Transfers, etc. • Ability to have an unlimited number of “secondary” object codes in GA that will map to the primary object codes used by Oracle GL (i.e., copier paper would map to office supplies) • 7 numeric digits plus description (30 maximum segment length) • Primary object codes same as GL blocked into ranges 1-2-2-2 • Secondaries hang off primary object codes, indicated by a plus sign between the primary object code number & the secondary’s description D

26. Oracle GA Object Code XXXXXXX+AAAAAAAAAAAAAAAAAAAAAA Major Range Minor Summary Range Object Code Title Secondary Indicator Minor Detail Range Posting Level D

27. Oracle GA Segments: PTAOE Project Key Project String 123456 12.45 1234567 12 1234567 Office Supplies Task Project Award Organization Expenditure Type D