How Account codes are used in R/3

In R/3, accounting system, the general term for the account code is cost object. The cost object is further broken into three kinds of codes: cost center, a profit center, and WBS (Work Breakdown Structure) element.

The 6-digit G/L account works with the cost object to define the nature of transactions

Company Codes

Recognizing Codes

To determine where and how a code is used, ask “How many digits?”

Six Digits:

The G/L account designates the type of revenue, expense, or balance sheet item being recorded by a transaction. The first four-digits are followed by “00” or in some cases, by “01” or “03” to further categorize the G/L account.

Example: 691800 Contributions and Prizes also is further broken into:

691801 Organizational Charitable Gifts
691802 Charitable Gifts
691819 Prof Liability – Media

Note: Health System companies (0020-0060) do not use the recharge G/L accounts (7xxxxx).

Seven Digits:

In R/3, company code 0010 (University) uses seven-digit codes for cost centers, profit centers, or WBS elements.

Example: 1571234

Nine Digits:

A nine-digit code could be either a cost center, profit center, or WBS element in the Health System company codes (0020-0060).

Example: 301061234

CAUTION!

Never use hyphens in R/3 in cost center and profit center codes. For example, 1573124 is a Company 0010 cost center in R/3.

Some WBS elements in R/3 use hyphens, but only those used by the DCRI and some construction projects. There are nine- and eleven (0010)/thirteen (0020-0060)-digit WBS elements. Those use the first hyphen after the seventh (0010) or ninth (0020-0060) digit. Other hyphens may occur after that depending on the level of the further break down.

Example: 7220020-07-01.

How To Determine the Company In Which A Code is Used

This section explains how to determine to which company code an R/3 cost center, profit center or WBS element belongs..

Company Code 0010

Company 0010 (University) uses 7-digits as the basis for cost centers, profit centers, and WBS elements (Work Breakdown Structures). In general, the following entities are in Company 0010,

All 1xx-xxxx, General Operating Funds

• Auxiliaries
  
• All academic departments and programs
  
• Central Administration
  
• The academic and research side of the Medical Center, i.e. the Medical School and the Nursing School
  
• The Private Diagnostic Clinic (PDC)
  
• The Clinical Research Institute (DCRI)
  
• Agencies
  

Cost Centers

The following are cost centers in Company 0010.

• 15xxxxx Education and General Expenses
  
• 168xxxx Student Aid Expense
  
• 180xxxx Auxiliary Enterprises Expenses
  
• 190xxxx Appropriations and Transfers
  
• 4xxxxxx Current Allocated Funds
  
• 5xxxxxx Loan Funds
  
• 6xxxxxx Endowment Funds
  
• 8xxxxxx Agency Funds
  
• 9xxxxxx Pooled Investment Funds
  

Profit Centers

The following revenue profit centers in Company 0010.

• 11xxxxx Education and General Revenue
  
• 140xxxx Auxiliary Enterprises Revenue
  

WBS Elements

The restricted fund series and the plant fund series are 7-digit WBS elements.

• 3xxxxxx Current Restricted Funds
  
• 7xxxxxx Plant Funds
  

Health System Company Codes (0020-0060)

Health System company codes have an account code structure that is a nine-digit code structure. The structure incorporates sight recognition to identify functional areas or clinical business units.

• The first two digits designate the company code. For example, 306070001 belong to Company 0030, and 408080000 belong to Company 0040.
  
• The other digits represent a department, program, or clinic within a functional area or clinical business unit. For example, 306070001 are PT/OT Adult Inpatients Services and 408080000 is DUAP Louisburg.
  
• This same nine-digit code serves as the cost center and profit center for the department, program, or clinic. For example, PT/OT Adult Inpatients Services has cost center 306070001 for non-capital expenditures, profit center 306070001 for revenues.
  

The nine-digit cost object is set up to enable sight recognition. The first two digits are the last two digits of the company code. The third digit designates the functional area, and the fourth and fifth break down the functional area further. The last four digits are assigned sequentially.