Changes to Unearned/Undistributed Revenue 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 revenue to be recognized in the fiscal year and period in which goods or services are provided.
To make accounting for both unearned and undistributed revenue easier for campus, we have modified that section of our general ledger.

*         We clearly differentiated unearned and undistributed revenue:

Unearned Revenue - Payments received for good or services which have not yet been provided. B5802 has been more clearly titled for this purpose.

Undistributed Revenue - Revenue earned for goods or services and not yet distributed. B5801 has been more clearly titled for this purpose.

*         We added an account code for unredeemed gift cards sold by campus departments.

*         We are discontinuing the use of B5901 Accrued Undistributed Income. We will be working with departments over the next few months to move transactions to more appropriate account codes.
Below are the updated commonly used unearned and undistributed revenue general ledger account codes.

Account Code

Title

New Code

Definition



Unearned Revenue





B5120

Prepaid Tuition & Fees

No

Payments for tuition and fees received for a future fiscal period or year.

B5802

Unearned Revenue

No

Payments received for goods or services which have not yet been delivered.

B5816

Athletics Prepaid Revenue

No

Athletics' payments received for goods or services which have not yet been delivered.

B5817

Unredeemed Gift Cards/Certificates

Yes

Payments received for unredeemed gift cards and certificates. Revenue is recognized when gift cards or certificates are redeemed.



Undistributed Revenue





B5801

Undistributed Revenue

No

Revenue earned for goods or services and not yet distributed.

B5901

Accrued Undistr Income

n/a

To be discontinued; no new entries allowed.



Thank you,

BAO Accounting Department

Jill Ritz, 6-1256, jritz at uoregon.edu<mailto:jritz at uoregon.edu>
Phil Davis, 6-3524, pdavis 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/20150326/9e7b0c8a/attachment.html>