Chart of Accounts: Project Accounting and Sub-Ledger Accounting Rules

Dear Colleagues,

As we continue to make progress on the chart of accounts initiative, we are approaching two milestones that we would like to provide updates on. No action is required by units at this time.

Project Accounting Set Up

The implementation of the sub-ledger accounting (SLA) rules on May 31, and the cross validation rules on July 1 are dependent upon having accurate and complete project data in the system.

  • We are updating project master data with the information provided by units. In partnership with Grant and Contract Accounting, we corrected, as needed, the Business Line, Fund Type and Revenue Accounts on all Sponsored Projects. This was done to comply with functional expense reporting regulations set by the National Association of College and University Business Officers.
  • The project master data file is posted on the chart of accounts initiative resources page. You can run report RU PJ 013 COA Segment Listing for Projects Report to view the project master data.
  • For more information on SLAs, please review the open forum presentation, or the SLA Webinar recording and presentation.

Sub-Ledger Accounting Rules

As a reminder, sub-ledger accounting rules (SLAs) will be implemented on May 31, 2018. SLAs dictate how transactions in the sub-ledger are recorded in the general ledger.

  • Project Costs – The U-D-O combination for all project costs will be derived from the Project Owning organization, not the Expenditure organization. This will ensure that costs always match revenues. For Sponsored projects, all other segments will be derived from the project. For all other non-sponsored projects, the Location and Business Line will be manually entered by the user. The natural account will be derived from the expenditure type for all projects.
  • Facilities & Administration (F&A) Indirect Cost Recovery – Recording F&A cost recovery will occur automatically, and at the same time as the F&A charge. The credit will go to the same account that it is charged to currently.
  • Accounts Payable Freight and Miscellaneous Lines – Freight and miscellaneous lines on an Accounts Payable invoice that are in addition to the purchase order lines will be charged to a specific account for freight (69220), and a specific account for miscellaneous (69300). These charges will be allocated across the invoice lines for all other segments.
  • Grant Fund Type – An approval workflow will automatically reject any general ledger journal entry that charges to a Sponsored Fund Type. This is for general ledger journals only; Project transactions will continue to be allowed.

If you have questions about project accounting set up or sub-ledger accounting rules, please contact your unit’s business manager, a Chancellor or central unit representative, a member of the Chart of Accounts Advisory Group, or the University Budget Office at budget@finance.rutgers.edu.


Regards,

Kathy Dettloff, Vice President of Financial Planning and Budgeting
Pete Larson, Associate Vice President and University Controller