Account Coding

Seattle University uses fund accounting to account for financial activities. In order to assign proper account coding, a basic understanding of the account coding structure is helpful for cost center managers.

Account Coding Structure

The full account coding structure is a thirteen-digit number set composed of three sub-sets called FUND, DEPARTMENT, and ACCOUNT respectively.
Example:

Definitions

Fund

The fund code consists of two digits, which identify a fund, grant or project. Examples of these funds are Current Fund, Loan Fund, Auxiliary Enterprises Fund, Endowment Fund, Plant Fund, and Restricted Gift Fund. Below is a sample list of these funds:

Department

The department code consists of six digits. It identifies an organizational unit / department / cost center within a fund. Examples of departments are: Name of your department, Office of the President, Mailing Services, Controller's Office, Bookstore, School of Education, Mechanical Engineering Department, Provost, Human Resources, Math Department, Philosophy Club, Minority Student Affairs, etc.

Below is a sample list of these organizations:

• 415600 Mailing Services
• 412000 Controller's Office
• 615200 Bookstore
• 156000 School of Education
• 406000 Provost
• 413000 Human Resources
• 162600 Math Department
• 898201 ASSU activities

Account

The account code consists of five digits which identifies the type of the financial activity. The account code indicates whether any expenditure paid out of your department is salary, travel expense, office supplies, printing expense, rent, telephone expense, equipment, etc. Revenues received can be classified as gift revenue, rental revenue, revenue from sale of books, tuition revenue, lab fees income, etc.

See list of the most Commonly Used Accounts.

Examples of Account Coding

Invoice Payments

When an invoice is presented to you for your approval of payment, the thirteen-digit coding must be written clearly on the face of the invoice in the following order: (ABC order)

Example 1

The Office of Human Resources receives an invoice for $150.00 from the Seattle Times for an employment ad placed in March 2001. The cost center manager or department head must sign on the face of the invoice, write the thirteen-digit code and mail it to Accounts Payable for payment. The coding for this is 11-41XXXX-61010 and it shows that the expense is charged to

Example 2

The School of Education received a funding for the Literacy Project. The project manager has purchased some printing materials costing $250.00. The grant manager must sign on the face of the bill and write the thirteen-digit coding and forward the bill to Accounts Payable for payment. The coding for this is 41-158099-61039 and it shows that the expense is charged to

Cash Receipts

Generally, all funds received by the university are credited to a revenue account. Revenues can be in the form of gifts, grants, tuition, fees, rentals, bookstore sales, etc. All revenues must be assigned a thirteen digit account code for proper accounting. Funds received as gifts must be forwarded to the University Advancement Office for processing. Funds received from grant agencies must be forwarded to Controller's Office for processing. Funds other than gifts and grants are processed by the departments. The department or cost center must assign an thirteen-digit code to these receipts and forward them to the Controller's Office for further processing.

See also Departmental Bank Deposit / Cash Receipts

Example 1

The School of Business received from a donor a check for $2,000.00 as a gift for the Accounting Department. Since this is a gift, the cost center manager forwards the check to the University Advancement Office for account coding and depositing.

Example 2

The Department of Physics received a check for $3,500.00 as a grant from a government agency. Since this is a grant, the cost center manager must forward the check to Controller's Office for account coding and depositing.

Example 3

The Library occasionally receives monies (e.g., library fees) for certain types of services provided to the users. The library will provide the thirteen-digit code on the cash receipt form and bring them to the cashier representative in the Controller's Office for deposit. In this instance, the coding should be 11-22XXXX-41501

Example 4

Occasionally, a department may receive funds that are not considered to be revenues. These funds represent reimbursement or defrayment of expenses. For example, employee John made personal phone calls and reimbursed the department with a check for $ 5.24. The cost center manager should write the thirteen-digit code on the cash receipt form and bring it to the cashier representative in the Controller's Office for processing. The coding for this is 11-XXXXXX-61061 and write a short description of telephone-long distance reimbursement.

Example 5

The School of Education conducts a free workshop called Literacy for Adults. The participants voluntarily give $450.00 to help defray the printing expenses. The amount is not revenue but an offset against printing expenses. The coding for this is 11-15XXXX-61039 and write a short description of defrayment for printing expenses.