Choosing the Correct GL Code

(1)

Choosing the Correct GL Code Table of Contents Table of Contents Table of Contents 1 Basic GL Information 2 Capitalizing Assets 3 AP Tools 4 - 10

Category Items List 5

OSF OEC 6

Grants GL Account to Budgetary Category 7

Example 8

(2)

Choosing the Correct GL Code

Ways to Use Expense GL Codes:

Intro

Ways to Use Expense GL Codes:

1. Please Pay Voucher

2. Requisitions/Purchase Orders

3 Pcard Payments

3. Pcard Payments

Effects Of Using Incorrect GL Codes:

1. Payments may not be properly

reported on 1099 or 1042.

2 Items may not be tracked by Asset

2. Items may not be tracked by Asset

Management if for proper amortization

of expenses on financial statements.

3 GL codes on POs cannot be corrected

3. GL codes on POs cannot be corrected

on the PO, so it is important that the

GL is correct on the requisition.

4. Cost transfer may be necessary to

correct GL codes after the payment is

made.

(3)

When to Capitalize:

Capitalizing



Tangible Capital Asset

- A tangible capital

asset is one that is:

• Moveable (i e not permanently attached to a • Moveable (i.e., not permanently attached to a

building),

• Has a useful life extending beyond one year, and

whose cost (i.e., invoice price plus freight, installation, etc.) is , ) $5000 or more$ .

Examples of tangible capital assets are: office equipment, lab equipment, shop equipment, motor vehicles, furniture, tools, etc. A tangible capital asset cost is "capitalized" or reported as an asset on an organization's balance sheet rather than as an asset on an organization s balance sheet rather than "expensing" the cost of the item against the current fiscal year's operations.



Tangible Non-Capital Asset

Tangible Non Capital Asset

- A tangible non-

A tangible non

capital asset is:

• One that has a useful life of one year or less and/or • Whose cost is less than $5000.

The cost of a tangible non-capital asset is "expensed" on an organization's income statement against the current fiscal

(4)

AP Tools

:

AP Tools

:

 Category Item List

http://www.ouhsc.edu/financialservices/documents/AP_forms/Category_Item.xls

Find your expense GL codes by category alphabetically. Also, has specific payment type notes on the list.

 Office of State Finance (OSF) Object Expenditure d ( )

Code (OEC)

http://www.ouhsc.edu/financialservices/documents/Training/Osfoec.pdf

Obtain the full description/meaning of the OUHSC GL codes by using the OSFOEC number.

 Grants GL Account to Budgetary Category

http://www.ouhsc.edu/financialservices/documents/Financial_Services/Budget2GLAcct.pdf Find which category on your SPNSR or SP490 funds that the GL expense account will fall in.p

 General Ledger Fund Listing

http://www.ouhsc.edu/financialservices/documents/Financial_Services/GL_Funds.pdf The full list of all accounting GL accounts for all types of

The full list of all accounting GL accounts for all types of transactions (asset, revenue, liability, expense, etc)

(5)

AP Tools

Category Item List:

This is the tool AP recommends when searching for expense GL codes. http://www.ouhsc.edu/financialservices/documents/AP_forms/Category_Item.xlsp // / / / _ / g y_ 1 3 4 1. GL Code Category 2 4 5 2. GL Code Subcategory

3. OUHSC GL (Account) Code 4. OUHSC GL Item Description 5. OSF OEC

You can search the category item list by keyword to locate a GL code that fits the item/service you are locate a GL code that fits the item/service you are purchasing. If you cannot tell by the description, copy the OSFOEC and paste it in to the State’s list

(6)

Choosing the Correct GL Code OSF OEC:

AP Tools OSF OEC:

This is the tool to use when the description on the Category Item List is too vague, you can’t find a code that matches your payment, or you just need to verify your choice

your choice.

http://www.ouhsc.edu/financialservices/documents/Training/Osfoec.pdf  Type a keyword or the OSF OEC in to the search

box box. 2 1 3 1. OSF OEC 2. Title 2. Title 3. Description

Once you have the OEC, you can search for it on the t it li t b li ki Ct l+F t fi d th category item list by clicking Ctrl+F to find the

(7)

Grants GL Account to Budgetary Category:

AP Tools Grants GL Account to Budgetary Category:

This tool is used to determine the budget category the GL falls under when budgeting for a grant.

http://www.ouhsc.edu/financialservices/documents/Financial_Services/Budget2GLAcct.pdf  Copy and past the GL code from the Category Item

list or search by a key word.

1 2 3

1. Budget Category 2. GL CodeG Code

(8)

Choosing the Correct GL Code Example:

AP Tools p

We need to find a code for a physical therapist.

1. Type “therapy” into the OSF OEC Search box and click next until you find a description that matches your payment.y p y p y

2. Copy the OEC

3. Open the Category Item list, click Ctrl+F, and paste the OEC

4 Choose the GL that corresponds with the OEC 4. Choose the GL that corresponds with the OEC

5. Copy the GL and paste in to search box on Grant GL Account to Budgetary Category

6. If you can’t see the Budgetary Category on the page, scroll up until you find it

(9)

General Ledger Fund Listing:

AP Tools General Ledger Fund Listing:

http://www.ouhsc.edu/financialservices/documents/Financial_Services/GL_Funds.pdf

1. 290 funds must be paid within the same budget year as the service date(s), invoice date, or order date. When these stat cancel, the money is not returned to the department. The warrant must be reissued through the state within 36 months from g the date of the cancellation.

2. 430 funds must be paid within the same budget year as the service date(s), invoice date, or order date. When these stat cancel, the money is not returned to the department. The warrant must be returned to the department. The warrant must be reissued through the state within 36 months from the date of the cancellation.

(10)

General Ledger Fund Listing Con’t:

AP Tools

g g

3. 701 funds may cross budget years because cash carries (with exception to travel claims). When they cancel by statute after 90 days, AP

cancels/reverses the payment and the funds are cancels/reverses the payment and the funds are returned to the department. The department can reissue the payment as many times as necessary. If the payment is still due and not reissued within five (5) years, it will be reported as unclaimed property.

4. 703 funds may cross budget years because cash carries. When they cancel by statute after 90

days, AP cancels/reverses the payment and the

f d d h d h

funds are returned to the department. The department can reissue the payment as many times as necessary. If the payment is still due and not reissued within five (5) years, it will be ( ) y , reported as unclaimed property.