General Accounting

ChartField value that classifies which asset, liability, net position (fund balance), revenue, expense or statistical value will be affected. This chartfield value classifies the nature of the transaction and is required on all transactions.

The systematic recording, reporting, and analysis of financial transactions to assist management in making financial decisions.

Accrual accounting relates to the timing of recording transactions. Revenues are recorded when earned and expenses are recorded when incurred, not when the cash is received or disbursed.

Periodic allocation of a specific type of asset’s (intangible asset or underlying right to use asset in a leasing arrangement) cost over its useful life.

Items that provide future economic benefits and are owned by the University as a result of a past transaction. Assets include items such as buildings, vehicles, receivables owed by customers, cash on hand, investments, etc.

Exchange a good or service for another good or service without using cash or other monetary assets.

Items that meet certain criteria and are recorded as assets and depreciated or amortized over their useful life.

• Capitalization criteria are
  • Equipment items costing $5,000 or greater
  • Building, infrastructure, and leasehold improvements costing $50,000 or greater
  • Software and other intangible assets costing $500,000 or greater
• The University must have title or ownership rights.
• The useful life must be one year or greater.

The recording of a capital asset and then depreciating or amortizing expense over the useful life of the asset.

A financial organizational tool that provides a series of systematically classified financial values (chartfields) that are used and compatible with EFS. The values support central and distributed financial reporting. The COA contains classifications or groupings, descriptions, and definitions as it relates to individual ChartField values.

A combination of ChartFields, which includes the required Fund, DeptID, Account, and Program or Project values. Additional optional ChartField values, such as ChartFields 1 and 2, FinEmplID may be used.

Credits are used in accounting to track transactions in and out of accounts. A credit will be entered into EFS as a negative number. A credit will decrease an asset or an expense account and increase a liability or revenue account.

Debits are used in accounting to track transactions in and out of accounts. A debit will be entered into EFS as a positive number. A debit will increase an asset or an expense account and decrease a liability or revenue account.

The acquisition or consumption of net assets applicable to a future reporting period.

Periodic allocation of a tangible capital asset’s cost over its useful life.

ChartField value that identifies the departmental level of responsibility at which to isolate a group of financial resources, employees, or academic programs to support effective management of financial, human, and academic resources.

Donated capital assets occur when an individual or organization gives the University an asset. Both the revenue and asset must be recorded in EFS.

Represents outstanding purchase orders, salaries and fringe, and other commitments for materials or services not yet received.

Actual costs that have resulted from the University’s ongoing operations. Expenses include items such as salaries, fringe benefits, lab supplies, repairs, maintenance, depreciation/amortization, etc.

A required attribute associated with all program and project chartfield values that indicates the purpose of the expense in alignment with the University mission or supporting activities.

Chartfield value with a self-balancing set of accounts that record the balances of cash and other financial resources (assets), together with all related liabilities.

Fund accounting classifies financial resources for accounting and reporting purposes into funds according to the regulations, restrictions, or limitations placed on their use by the donors, parties outside the University, or the Board of Regents.

The process of moving financial resources revenues and expenses between funds in EFS.

A collection of commonly followed accounting rules and standards for financial reporting.

A nongovernmental entity that is recognized by governments, the accounting industry, and the capital markets as the official source of GAAP for state and local governments, and is applicable to the University.

Obligations or debts that the University owes to outside parties. Liabilities include items such as accounts payable owed to suppliers, faculty and staff salaries, sales tax received on sales but not yet paid to the state, etc.

A financial transaction without the transfer of money between parties. One party gives a good or service, which is in exchange for receiving a good or service.

ChartField Value that describes the kind of activity being recorded, which aligns with an assigned function (for example: instruction, research, public service, institutional support, academic support, operations and maintenance of plant, student services, auxiliary enterprises, scholarship and fellowship, or agency).

Actual or expected inflow of resources received by the University as the result of its operations. Revenue includes items such as general state funding, tuition and fees, grants, contracts, gifts, etc.

An organizational unit at the University accountable to central administration for the financial activities of units and organizations reporting to the RRC. Generally each campus, Twin Cities college, and major support unit is considered an RRC.