Account Definitions {FCSO-3}

The account is the "lower" level of the GL-Allocation and contains the rules for accumulation, sub-totaling and totaling.

Therefore, defining accounts and setting up the calculation rules and levels of calculation require thorough planning beforehand.

Once again it is recommended that the responsibility for creating accounts is delegated to one person within the institution.

Whilst the calculation rules are not limited by the system, the user should bear in mind that an over-complication of the calculation rules may result in extensive maintenance and an unnecessary load on computer resources. Furthermore, the user should take cognisance of the fact that reporting can be done at different levels and that accounts of "similar importance" should be on the same level. An example of a structure is attached as Example.

If Account Lists are used in the system by an institution, new accounts created in this option can automatically be added to the Account Lists by linking an Account Range on the Account List definition {FCSO-5}. Should an account be created that falls within the range on an account list, the account will be added to the account list.

The deletion of an account is controlled and cannot be done in this option. If an account code must be deleted, it can be done via {FCSM-22}.

Fields in the option:

Block 1: Account Definition

Field	Type & Length	Description
Account Number	A8	Unique code for this account. Less characters than the eight specified may be used, usually not more than four. Users should take care in numbering the accounts because calculations are done sequentially on this number. A list of example accounts is supplied with the system. The logical structure of accounts is: Expenditure Revenue Balance Sheet Liabilities Balance Sheet Assets The reason being that a sub-total after expenditure and revenue will result in the net surplus/shortfall, which should be part of the fund balances in the liabilities.
Name	A30 X 2	Supply a suitable name for this account. Two lines of description are provided.
Short Name	A20	The first 20 characters of the description (name). The name will default into this field and the user may change it as required. This name will appear on reports and query screens, and users should, therefore, ensure that it makes sense.
Account Function	A1	This indicator determines the calculation function of this account, and should be read with the function level below. An example is discussed below. The valid options are: (H)eader - A header account cannot be used for posting transactions, and merely serves as indicator for a calculation to start. Being a header for different types of accounts, an account category and STATS rowcode are not required. (D)etail - A detail account is the only account to which transactions can be posted. (S)ubtotal - No transactions can be posted to this account and the system will sub-total all preceding detail accounts with the same level and sub-total or total accounts with a lower level. (T)otal - No transactions can be posted to this account and the system will total all preceding detail accounts with the same level and sub-total or total accounts with a lower level. Changing the status of an account requires, as in the case of a cost centre, careful planning. Once again, the critical concept is that transactions are only carried on a detail account. It is possible to change a (H)eader, (S)ub-total or (T)otal account to a (D)etail account, but the reverse is not allowed. If such a change is required, the user will have to delete the account via option {FCSM-22}, subject to the normal rules and restrictions.
Function Level	N1	There are 1 => 9 accumulation levels available, and accounts with a zero in this field will be ignored in the calculation process. The Trial Balance Report, menu option {FGLOR1-1}, can be produced at specific levels and therefore users should take care that sub-total and total accounts of the same importance are at the same level. (Refer Report {FCSOR1-6} for examples of account function and function level).
Onto New Page	A1	Should this account be printed on a new page during reporting? (Y)es or (N)o.
Underline	A1	Should this account be underlined with one line (-) or with double lines (=) on reports.
Exception Report Flag	A1	Enter marker for exception reporting. Part of the selection criteria in cost reporting refers to "exception" reporting (I)ncluded or (E)xcluded, and the user can specify the exception indicator to be included or excluded. The purpose and definition of the character used is user defined.
Account Category	N3	The account category to which this account is linked. The system will display the description and the Account Category Type. This field should be left blank for (H)eader, (S)ub-total and (T)otal accounts. The user should note that an Account Category is linked to an Account Type, which is an indication whether this account is an (A)sset, (L)iability, (E)xpense or (R)evenue account. The Income and Revenue and Balance Sheet Reports ({FGLOR1-2} and {FGLOR1-3} respectively) will accumulate the values of such accounts according to this indicator and not on its position in the structure.
Balance Sheet Transfer Account	A8	Supply the balance sheet transfer account to which the account must transfer to at year-end. The rules applicable to this field are as follows : The transfer account can only be accounts where account categories are 700 to 998 The account category of the account specified must be between 700 and 999. The following events will occur during phase three (3) of the General Ledger Year-End process : Transactions in accounts linked to account categories between 700 and 998 will be transferred to their transfer accounts in the new year and not in the old year. Transactions in accounts linked to account category 999 will be transferred to their transfer accounts in the old year. In the new year, these transfers will be reversed.
Depreciation Expenditure Account	A8	Supply the expenditure account for depreciation. Only accounts, which are linked to the account categories less than 490 are allowed.
Accumulated Depreciation Account	A8	Supply the account for accumulated depreciation. The account category of the Accumulated Depreciation Account must be between 900 and 909.
Impairment Account	A8	Supply the impairment account.The account category of the Impairment Account must be less than 490.
Accumulated Impairment Account	A8	Supply the impairment account.The account category of the Accumulated Impairment Account must be between 900 and 909.
STATS Row Code	N5	Enter the STATS Rowcode to which this account should be reported, if it can be directly allocated. For specific tables, the account can be directly allocated. For other statements, like 4.4, the system will use the percentages specified in Block 4 of the cost centre to spread over PCS's. The valid Rowcodes are predefined in the system, and are made up as follows: for STATS Financial Statement 4.4 row 7, the Rowcode would be 40407; for Statement 4.10 row 16, it would be 41016, etc. The valid STATS Rowcodes can be printed through option {FCSOR2-2}.
Motivation	A2	This is a display and query field only. The field is used by the Income and Expense Budgeting Subsystem and can only be set in option {MEBM-3}.
Status	A1	Display field only. Is this account (A)ctive or (N)on-active? Will only display (N)on-active if all the Cost Centres linked to the above account are (N)on-active. An account can be set to inactive at any time on GLA level, and thereafter no transactions will be allowed against it. A Header, Sub-total or Total Account cannot be set to non-/active. The system will treat these Accounts as active except for option "Delete Account" {FCSM-22}, which will treat it as Non-active.
Budget Control	A1	Indicates if budget control must be done on this account, (A)ccount or Account (C)ategory. The system will default the value from the System Operation Definition. When the user executes < HELP>, the valid values along with the explanation on the use of these budget control indicators will appear in the form of a pop-up screen. This indicator should be read with the indicator on the cost centre. If the cost centre indicator is set to (N)o, the system will ignore budget control for all accounts within this cost centre. If Cost Centre budget control indicator is set to Account/Account Category, then budget control is done on the available funds for all Accounts where the Account Category of the account is in the account category range as defined on the budget code linked to the cost centre. Thus, users must ensure that the budget control indicators for these accounts are set-up correctly.

Example(s):

Examples

No	Description	F	L
2000	SUPPLIES AND SERVICES	:H	6:
2010	STATIONERY	:H	6:
2012	Stationery	:D	6:
2024	Photocopies	:D	6:
2016	Printing	:D	6:
2018	Binding	:D	6:
2049	Total Stationery Requisites	:S	6:
2150	COMMUNICATION EXPENSES	:H	5:
2160	Postage, Stamps and Telegrams	:D	5:
2161	Telephone Expenses	:D	5:
2199	Total Communication Expenses	:T	5:
2200	TRAVEL EXPENSES	:H	5:
2210	Subsistence & Travel - Council Members	:D	5:
2212	Subsistence & Travel - Administration	:D	5:
2214	Subsistence & Travel - Academic	:D	5:
2216	Subsistence & Travel - Scientific Travel	:D	5:
2222	Tour Costs	:D	5:
2249	Total Travel & Accommodation Expenses	:T	5:
2250	VEHICLE EXPENSES	:H	5:
2260	General Vehicle Expenses	:D	5:
2261	Reparations	:D	5:
2262	Services	:D	5:
2263	Tyres	:D	5:
2264	Petrol, Oil & Grease Materials	:D	5:
2299	Total Current Vehicle Costs	:T	5:
2300	LABORATORY COSTS	:H	5:
2310	Chemicals	:D	5:
2311	Gas and Fittings	:D	5:
2312	Consumable Materials	:D	5:
2313	Handbook and Manuals	:D	5:
2314	Service Contracts	:D	5:
2315	Maintenance of Equipment	:D	5:
2316	Photographic Material	:D	5:
2317	Audio-visual Material	:D	5:
2318	Clinic Requirements	:D	5:
2319	Computer Material	:D	5:
2320	Computer Maintenance	:D	5:
2390	Sundry Laboratory Expenses	:D	5:
2399	Total Laboratory Costs	:T	5:
2400	FINANCIAL & PROFESSIONAL SERVICES	:H	5:
2401	Banking Costs	:D	5:
2402	Collection Costs	:D	5:
2403	Legal Costs	:D	5:
2404	Audit Fees	:D	5:
2405	Consultation Fees	:D	5:
2406	Honoraria & Authors Fees	:D	5:
2407	Examiners & Moderators	:D	5:
2499	Total Financial & Professional Costs	:T	5:
2500	ADMIN AND EXPENSES	:H	5:
2510	Contribution to Societies	:D	5:
2511	Affiliation fees	:D	5:

Back to Block 1

Processing Rules
	No special processing rules

Date	System Version	By Whom	Job	Description
27-Sep-2006	v01.0.0.0	Amanda Nell	t133471	New manual format.
10-Dec-2008	v01.0.0.1	Marchand Hildebrand	t152121	Manual Corrections
11-Jan-2010	v02.0.0.1	Ernie van den Berg	t162536	Add a note on the new Account List Range function.
28-Jul-2011	v02.0.0.2	Christel van Staden	f176283	Account codes cannot be deleted from this option
11-Nov-2015	v04.0.0.0	Marchand Hildebrand	t200729	Convert to ADF (199727)
26-Oct-2020	v04.1.0.0	Ndivhanga Mushando	t247834	Add new fields 'Impairment' and 'Accumulated Impairment'