Understanding the Chart of Accounts

Link to Chart in Excel Format

http://www.csu.edu.au/division/finserv/staff/polici
es.htm
Chart of Accounts Components
1

The Chart of Accounts is the key index to all financial data in the
system. It is important that you understand the Chart of Accounts to
understand how your transactions are stored and can be retrieved in
the system.

The structure of the chart of accounts coding, referred to as the

ledger coding, for every transaction in the finance system is as
follows:

Chart
is 5.

One alphanumeric code currently the value

Fiscal Year
2011.

Two numeric digits e.g. 11 means the year

Fund Code

Up to 6 alphanumeric code currently is

either 4 or 5 alphanumeric characters in
length.

Organisation Code

Up to 6 alphanumeric code currently is

either 3 or 4 numeric digits in length.

Account Code

Up to 6 alphanumeric code currently is 3

numeric digits in length.

Program Code

Up to 6 alphanumeric code currently is

either 4 or 5 alphanumeric characters in
length.

The chart of accounts has other optional components as follows:

Index Code

Up to 6 alphanumeric code currently is used

only in restricted circumstances.

Banner Finance Chart of Accounts Training

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Activity Code

Up to 6 alphanumeric code currently not

used by CSU.

Location Code

Up to 6 alphanumeric code currently not

used by CSU.

Banner Finance Chart of Accounts Training

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Description of Components
4

The following describes how the individual components are used in

the system for recording individual transactions:
Chart

This code is used primarily to denote separate

legal entities for the purposes of producing
financial statements. Currently CSU only has
one chart of account but this may change in
the future. It is a mandatory field.

Fiscal Year

All transactions in the system are recorded

and reported by fiscal year. It is a mandatory
field.

Fund Code

Fund codes provide the mechanism for the

University to separately record funds from
outside the university that come with legal
conditions to separately record and report on
those funds. The fund code is generally used
to identify the external source of the funds but
may also be used to define some internally
allocated funds. It is a mandatory field.

Organisation Code

Organisation codes are the key component

that holds budgets. When linked with a Fund
code the combination of Fund/Orgn is what we
call a Budget Centre or a Cost Centre. The
Organisation code structure will generally be
similar to the formal university organisation
chart wherever that unit of the University
holds budget responsibilities. It is a mandatory
field.

Account Code

Account codes tell the system what type of

accounting entry is being processed and
identifies for us the type of accounting
transaction, i.e. revenue, expense, asset,
liability, or equity. It is a mandatory field.

Program Code

Program codes provide flexibility in reporting

and managing budgets. It is used to manage
budgets for projects, consultancies, cross
organisation collaborative projects, multi
funded projects, internally funded research
projects etc. It is a mandatory field and used
quite diversely by CSU.

Banner Finance Chart of Accounts Training

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Activity Code

Can be used for university-wide activities,

such as professional development. It is an
optional field and is currently not used by
CSU.

Location Code

Location codes identify the physical location of

buildings and rooms to the system. It is an
optional field and is currently not used by CSU
for transactions processing. But it is used in a
restricted way by the Division of finance only
for the Banner Fixed Assets master file to
record where fixed assets are physically
located.

Index Code

Indexes can be established to facilitate data

entry and represent a default Fund-Orgn-AcctProg-Actv-Locn combination currently is used
only minimally at CSU.

Hierarchy of Components
5

The following describes the hierarchy established for the components

to facilitate flexible reporting levels within the system. Typically
transactions are only able to be entered at the lowest level of the
hierarchy, i.e. at the data enterable code. The higher level codes are
used for roll up reporting.
In the Fund code example below, querying or running a report on
Fund code RB57 (not data enterable) will provide a summarised view
of all transactions for the data enterable funds RD04 + RD30 + RD38.
Fund Code

Hierarchy structure to five levels. For

example:

R001
Research Grants
R002
Commonwealth Research Grants
R589
Cooperative Research Centres
RB57
CRC National Plant Biosecurity
RD04
CRC NPB - 3880 - J Spinner/G Gurr
RD30
CRC NPB - 3897 - J Kent
RD38
CRC NPB - 4125 - G Gurr
Organisation Code
400

Hierarchy structure to eight levels. For

example:

Division of Facilities Management

410
Facilities Management - Operations

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6701
Operations - Directorate
413
Operations Director
6702
Operations Sustainability Management

Account Code
33

Hierarchy structure to four levels. For

example:

Fees for Services Rendered

335
Conference/meeting Services
342
Conference/Seminar Fees
362
Catering Meetings/Conferences

Program Code

Hierarchy structure to five levels. For

example:

5627
Office of Corporate Affairs Programs
9003
Alumni Office Programs
6110
Alumni WACOBU Programs
6111
WACOBU White membership
6112
WACOBU Gold membership
E154
Mitchell Old Boys Rugby

Nomenclature
6

Ledger Coding or FOAP is the correct terminology to use with Finance

to be understood correctly when referring to the F-O-A-P : F(und)O(rgn)-A(cct)-P(rog). Please refrain form using Account codes to refer
to the full FOAP as that is misleading since the Account code is only
one component part of the ledger coding.

Ledgers
7

The Finance system incorporates four main ledgers:

General Ledger (for assets & liabilities mainly used by

Division of Finance)

Operating Ledger (for revenue & expenses used by

everyone)
o Includes the Budget Ledger (for budgets)

Encumbrance Ledger (for Requisitions and Purchase Orders)

Grant Ledger (for Research Grants for multi-year reporting)

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Finance System Overview

8

The Banner Finance system includes several different modules that

are integrated into one system. It also integrates with other Banner
systems such as Human Resources, Student Administration,
Advancement and Financial Aid. CSU only operates the Banner
Finance and Banner Student systems. A relationship diagram below
shows the integration of the modules.

General Ledger module

Finance Operations module

Purchasing module

Accounts Payable module

Stores Inventory module

Fixed Assets module

Research Grant Accounting module

Accounts Receivable module

Endowment Management module

Cost Accounting

Budget & Position Control

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