What is the New Missouri State Chart of Accounts?
A chart of accountscontains various elements, or data fields, which are used by a company or institution to record financial transactions.
We looking at elements which describe the operating ledger, as this is the chart area which is generally used. (There is also ageneral ledger which is used by Finance administrators.
In FRS, every transaction is described in terms of two elements, the account and subcode:
XXXXXX - XXXX
Account Subcode
As of July 1, 2008, using a new account number structure, which has more data elements to provide better analysis and reporting:
An account number will look like this in Banner:
XXXXXX - XXXXXX - XXXXX - XXXX
Fund Organization Account Program
The first letters of the four account elements create an acronym, FOAP:
Fund - the source from which the funds are drawn, or "where the money comes from." It is 6 digits long.
Organization - the Organization code is the department/budgetary unit within the university, or "who the money belongs to." You use the Org code when you incur departmental expenses. 6 digits.
Account - identifies the category of activity, such as revenues, expenses, assets, liabilities, and transfers. It describes "what the money is used for." 5 digits.
Program - used to group together activities such as academic support and instructional support, representing "how the money is reported," on financial statements. The program number can be 2 or 4 digits.
Why is the Chart of Accounts Important?
Every area of the university is touched by the financial system and financial reporting. When the Banner Finance system goes live 7/1/08, the entire university will use the new chart of accounts.
Missouri State employees must understand the new chart of accounts structure and be able to use it on a daily basis for tasks such as hiring an employee, creating a requisition, completing a budget revision, reading reports, and more.
Guide
This information is being determined as part of the current implementation process.