Changes to Prepaid Expense Account Codes

[Business Affairs Office News]

Good morning,

The Business Affairs Office (BAO) Accounting Department would like to notify University of Oregon (UO) personnel of changes made to the UO Chart of Accounts and its potential effects on you.

Historically, our general ledger account codes have essentially remained unchanged since our conversion to Banner in the mid-1990s.  As part of our transition from the Oregon University System, we are taking the opportunity to review and update general ledger account codes and make them more user-friendly and tailored to our campus.  Unused account codes will be eliminated and more appropriate ones will be added.  This will make it easier for departments and central offices to choose account codes, track entries, and reconcile balances.

The UO complies with Generally Accepted Accounting Principles' (GAAP) accrual accounting methodology which requires expenditures to be charged to the fiscal year and period in which goods are received or services are performed, regardless of when budget or cash is available.
To make accounting for prepaid expenses easier for campus, we have modified the prepaid expense section of our general ledger (see below).  We are discontinuing the use of A5901 Prepaid Expense Year-End Accrual because we have created specific account codes for typical prepaid expenditures.  We will be working with departments over the next few months to move transactions to more appropriate account codes.

Account Code

Title

New

Definition

A5013

Prepaid Worker's Comp Insurance

No

Expenditures for prepaid worker's comp insurance.

A5019

Prepaid Services & Supplies

Yes

Expenditures for services and supplies not yet received.

A5020

Prepaid Travel

Yes

Expenditures for travel which will occur in a future period.

A5021

Prepaid Subscriptions/Memberships

Yes

Expenditures for subscriptions or memberships which will be used in future periods. Expense to be prorated to the fiscal years when goods or services are received.

A5022

Prepaid Capital Assets

Yes

Expenditures for capital assets not yet received.

A5023

Prepaid Software Expenditures

Yes

Expenditures for software and related costs such as: licenses, leases, rentals, maintenance, and other fees which will be used in future periods. Expense to be prorated to the fiscal years when products are utilized.

A5030

Prepaid Miscellaneous Expense

No

Expenditures which are not specified by any other prepaid category. See A5013 - A5023.

A5901

Prepaid Expense Year End Accrual

n/a

To be discontinued; no new entries allowed.




Thank you,

BAO Accounting Department

Phil Davis, 6-3524, pdavis at uoregon.edu
Jill Ritz, 6-1256, jritz at uoregon.edu<mailto:jritz at uoregon.edu>
Robbin Howard, 6-1115, rchoward at uoregon.edu<mailto:rchoward at uoregon.edu>

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://lists-prod.uoregon.edu/pipermail/bao-news/attachments/20150323/62337da5/attachment.html>