Setting Up Your Chart of Accounts in FARS 5'0

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Setting Up Your Chart of Accounts in FARS 5.0

• FARS 2000 Training Conference

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Introduction

• The First and Most Important Step in
  Converting to FARS 5.0

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ICESA FARS Account Code Block

• Class
• Cost Center
• Account
• Object/Subobject
• Project
• Function
• Fund
• Fund Group
• Fiscal Year

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FARS 5.0 Account Code Block (ACB)

• Fund/Fiscal Year
• Project
• Organization
• Object
• Function
• GL Account

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FARS 5.0 Hierarchical Structure

• Available for ACB Elements
• Fund
• Project
• Organization
• Object
• GL Account
• Parent/Child Relationship
• All Levels are Postable (recommend lowest level)

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GL Account Sample

• Level 1 Major Level (Parent to Minor Level)
• One Character Long
• Level 2 Minor Level (Child to Major Level,
  Parent to Detail Level)
• One Character Long
• Level 3 Detail Level (Child to Minor Level)
  (Posting Level)
• Two Characters Long
• Total Length of Concatenated Code Four
  Characters

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• Assets
• Major Level 1 Assets
• Minor Level 0 Cash Accounts
• Detail Level 00 General Cash (1000)
• 50 Petty Cash (1050)
• Minor Level 1 Inventory Accounts
• Detail Level 00 Inventory (1100)
• Minor Level 2 Due From Accounts
• Detail Level 00 Due from Agency Fund Petty
  Cash (1200)
• 10 Due from Agency Fund
  Inventory (1210)
• 20 Due from Agency Fund
  Prepaid Expenditure (1220)
• 50 Due from Grantor/Other
  Funding Source (1250)

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• Minor Level 3 Receivables
• Detail Level 00 Accounts Receivable (1300)
• 20 Refunds (1320)
• 50 Advances (1350)
• Minor Level 4 Prepaids
• Detail Level 00 Prepaids (1400)
• Minor Level 6 Buildings
• Detail Level 00 Buildings (1600)
• 05 Accumulated Depreciation
  Buildings (1605)
• 50 Construction in Progress
  (1650)
• 55 Accumulated Depreciation
  Construction in
• Progress (1655)
• 70 Improvements Other Than
  Buildings (1670)
• 75 Accumulated Depreciation
  Improvements
• Other Than Buildings
  (1675)

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• Minor Level 7 Machinery and Equipment
• Detail Level 00 Machinery and Equipment (1700)
• 05 Accumulated Depreciation
  
• Machinery and
  Equipment (1705)
• Minor Level 8 Land
• Detail Level 00 Land (1800)
• Minor Level 9 Investments
• Detail Level 00 Investments (1900)
• 50 Amount To Be Provided for
  Long-Term
• Debt (1950)
• Major Level 2 Liabilities

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Account Structures for FARS 5.0 Current
ICESA/FARS Users

• Fund (4)
• Level 1 Detail Level (4) (Postable Level)
• Project (4)
• Level 1 Detail Level (4) (Postable Level)
• Organization (5)
• Level 1 Detail Level (5) (Postable Level)
• Object (4)
• Level 1 Object (2)
• Level 2 Subobject (2) (Postable Level)
• Function (3)

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• GL Account (4)
• Level 1 Major Level (1)
• Level 2 Minor Level (1)
• Level 3 Detail Level (2) (Postable Level)
• GL Classification (1)
• Fiscal Year Indicator (1)
• Federal (F) and Program (P)
• Consider Dummy Indicator for Allocations

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Things to Consider When Designing Your Chart of
Accounts

• Not Limited to ICESA/FARS Hard-coded Structures
• Logical Level Breaks
• Departmental Structure for Organization
• Needs of External Reporting Systems (Statewide
  Accounting Systems)
• Anticipate Future Growth and Changes
• Converting Historical Data

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Important Differences Between ICESA/FARS and FARS
5.0

• If one-to-one Fund/Project relationship is
  maintained, both ACB elements must be present in
  the transaction.
• GL Classification is not included when entering
  the transaction. GL Classification is associated
  with the GL Account during GL Account creation.
  GL Classification is recorded when the
  transaction is posted.
• There is no Historical Fund Ledger. Therefore,
  no need for a Fund Retirement Process.