Account Overview (COA)

The Account is the next segment in the Chart of Accounts. It describes the purpose of an expenditure, the type of revenues received, and the balance sheet accounts required for GAAP accounting. Eleven positions of the account are currently being used for the North Carolina Accounting System. The North Carolina Accounting System account is identified as follows:

account type chart

ACCOUNT is divided into five identifiers:

  • Account Type (Position 1)
  • Account Subtype (Position 2)
  • Statewide Object (Positions 3-6)
  • Subaccount (Positions 7-9) (Optional)
  • Fiscal Year (Grant Accounting Only) (Positions 10-11)

The first nine positions represent the North Carolina Accounting System account numbers. Positions 10 and 11 are reserved for a grant fiscal year indicator (where year 1991 becomes 91). For non-grant accounting functions, positions 10 and 11 are blank. The last seven positions are also left blank. They are reserved for future use of further detail and are not currently required.

Account Type

The first position of the Account is the account type, which describes the major category of an account. Through the use of the different account types, the general ledger provides both budgetary and accrual GAAP reporting. The processing class is built within the software to indicate the accounting treatment of account types at year- end. The following is a list of account types with their normal balance and processing class, which are valid for Account position 1:

  Types Normal Balance Processing Class
1
Assets
Debit
1
2
Liabilities
Credit
2
3
Fund Equity and Other Credits
Credit
3
4
Revenues
Credit
4
5
Expenditures
Debit
5
6
Budget (Revenues)
Debit
6
7
Budget (Expenditures)
Credit
7
8
Purchase Order Encumbrances
Debit
2
9
Reserved for Suspense Accounts
Zero
3
10
Accounts Payable Encumbrances
Debit
2

actual expenditure chart

Data Entry Account Types

For data entry purposes, only account types beginning with 1 through 5 are used. System accounting rules in the Financial Controller (FC) module change an account type from its original entry type to its posted account type.

The following description explains this concept:

Life Cycle of an Expenditure

"Account type 7" (Budgeted Expenditure), "Account type 8" (PO Encumbrance), "Account type 0" (AP Encumbrance) and "Account type 5" (Actual Expenditure) represent the stages of an expenditure or expense in North Carolina Accounting System.

  • Budgeted Expenditure (Account Type 7)
    To establish a budget for an expenditure, an "Account type 5" is entered into the North Carolina Accounting System through the Budgetary Control module. A system accounting rule programmatically changes the "Account type 5" entered to an "Account type 7" representing a budgeted expenditure. Only the "Account type 7" transaction is recorded in the General Ledger.
  • Purchase Order Encumbrance (Account Type 8)
    To establish an encumbrance, an "Account type 5" is entered in the purchasing module. When the Purchase Order is established, the "Account type 5" is programmatically converted to an "Account type 8" (purchase order encumbrance) by a system accounting rule. Only the "Account type 8" transaction is recorded in the General Ledger.  
  • Accounts Payable Encumbrance (Account Type 0)
    When the invoice is entered or displayed in the accounts payable module, an "Account type 5" is associated with the transaction amount. If a purchase order has been previously entered for this invoice, an accounting rule liquidates the "Account type 8" purchase order encumbrance and records an "Account type 0" (AP encumbrance). Account types "8" and "0" transactions are recorded in the General Ledger.
  • Actual Expenditure (Account Type 5)
    When the check is produced, the "Account type 0" (AP encumbrance) is liquidated and the actual expenditure, "Account type 5" is recorded. Account types "0" and "5" transactions are recorded in the General Ledger.

Thus Account types 7 , 8, 0, and 5 are the progression of an expenditure from the budget, to the purchase order stage, to a payable encumbrance and finally to an actual expenditure.

Account Subtype

Account subtype indicates financial and budgetary reporting requirements. The following is a list of account subtypes which are valid for each account type:

 

Account Type
(Position 1) 

Account Subtype   
(Position 2) 

Description 

1,2 

Current 

 

Non-current 

 

Intercompany (DOC use only)

Contributed Capital 

 

Fund Balance 

 

Retained Earnings 

 

Investment in Property 

 

Company Closing 

4,5,8,0 

Actual 

 

6

Monthly Accruals (DOC use only)

5,8,0 

Consumption (Inventory Module Only)

Authorized Budgeted Revenues 

 

Life-to-Date Budgeted Revenues 

 

Certified Budgeted Revenues 

Authorized Budgeted Expenditures 

 

Life-to-Date Budgeted Expenditures 

 

Certified Budgeted Expenditures 

 

Consumption (Inventory Module Only) 

 
budget expenditure chart

Establishing Account Types In The Chart Of Accounts

When establishing the Chart of Accounts, all account types for a specific statewide object must be established. These are referred to as account type families in the North Carolina Accounting System.

When establishing a new expenditure account, the following family of accounts is used in the North Carolina Accounting System Chart of Accounts:

  • 783110 - Office Supplies (Certified Budgeted Expenditure)
  • 733110 - Office Supplies (Authorized Budgeted Expenditure)
  • 833110 - Office Supplies (PO Encumbrance)
  • 033110 - Office Supplies (AP Encumbrance)
  • 533110 - Office Supplies (Actual Expenditure)

When establishing a new revenue account, the following family of accounts is used in the North Carolina Accounting System Chart of Accounts:

685100

Business License Fees (Certified Budgeted Revenues) 

435100

Business License Fees (Actual Revenue) 

635100

Business License Fees (Authorized Budgeted Revenues) 

 

Statewide Objects

The next segment of the Account contains the Statewide Object. The following is a list of statewide object categories (groups) which are valid for each account type: 

Account Type 

Statewide Object  
(Position 1) (Position 3) 

Description 

1xxx 

Cash, Cash Equivalents and Pooled Cash 

2xxx 

Investments 

3xxx 

Receivables 

4xxx 

Interfund Receivables 

5xxx 

Notes Receivables 

6xxx 

Inventories 

7xxx 

Fixed Assets 

8xxx 

Long-Term Obligation Debits 

9xxx 

Other Assets 

1xxx 

Accounts Payable and Accrued Liabilities 

2xxx 

Interfund Payables 

3xxx 

Notes Payable 

4xxx 

Capital Leases Payable 

5xxx 

Benefits and Claims Payable 

6xxx 

Bonds and Interest Payable 

7xxx 

Deposits Payable 

8xxx 

Deferred Credits 

9xxx 

Other Liabilities 

4,6 

1xxx 

Tax Revenues 

2xxx 

Grants 

3xxx 

Investment Income 

4xxx 

Sales, Services, and Rentals 

5xxx 

Fees, Licenses, and Fines 

6xxx 

Contributions and Donations 

7xxx 

Miscellaneous 

8xxx 

Intragovernmental Transactions 

9xxx 

Budgetary Accounts 

5,7,8,0 

1xxx 

Personal Services 

2xxx 

Purchased Services 

3xxx 

Supplies 

4xxx 

Property, Plant and Equipment 

5xxx 

Other Expenses and Adjustments 

6xxx 

Aid and Public Assistance 

7xxx 

Reserves 

8xxx 

Intragovernmental Transactions 

9xxx 

Budgetary Accounts 

 

expenditure account chart

intragovernmental transactions chart

office supply chart

Subaccount

Positions 7-9 make up the subaccount and are used to further define the statewide object definition, if needed. Since validation to the North Carolina Accounting System Uniform Chart of Accounts is controlled by OSC, requests for entries to the subaccount are required to be submitted for review and approval by OSC.

Fiscal Year

The next two positions identify the fiscal year. The fiscal year is only included for grant accounts. If the fiscal year is used with an account, positions 7, 8, and 9 must either identify a subaccount or be all zeros.

System Defined Accounts

"Account type 9" is used to represent NCAS/DBS system defined accounts. These system defined accounts are used to establish a suspense account, which for North Carolina Accounting System is "99999999899." The system generates entries to this account when it encounters errors in posting.

These system defined accounts are also used to establish summary accounts. These summary accounts are used to obtain on-line summary information and facilitate reporting. Summary accounts are defined in the North Carolina Accounting System as "99999999999," with account positions 17 and 18 containing the processing class and the first position of the statewide object. Summary accounts are used with summary centers.

For example, to inquire on the Cash, Cash Equivalents and Pooled Cash summary account, the following account would be used.

summary account chart