| Definitions of Commonly Used Terms |
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Here are a few commonly used finance terms that you will likely hear while doing business here at the School. Finance Terms
FRS (Financial Records System) FRS (Financial Records System)The Financial Records System (FRS) is the one of the main software systems used by UNC for its accounting needs.
Account (account number)FRS identifies an account by a sequence of numbers called an account number. The account number in FRS is a 10-digit number (x-xxxxx-xxxx). The first digit (X-xxxxx-xxxx) refers to the ledger code to which an account belongs. The next five digits, together with the first digit (X-XXXXX-xxxx), identify a unique account. The final four digits (x-xxxxx-XXXX) identify a specific account control or object code. Cost CenterCost centers are accounts within other accounts, and they are usually tied to Trust lines and State accounts. Every faculty member has his or her own cost center account, which is a unique identifier.
ScreenRefers to an individual page within the FRS. Screens provide different launch points for staff/faculty to make finance inquiries and review their accounts. Check RequestThe Check Request form provides departments with a mechanism to pay companies and individuals for those types of approved expenditures that do not require a University Purchase Order or a Request for Payment of Independent Contractor. To make a Check Request, log on to Finance Central.
LedgerAll the accounts within FRS are contained in either the General Ledger or a Subsidiary Ledger. The first digit in the account number refers to the ledger to which an account belongs. The following is a list of values and descriptive titles:
General Ledger (GL)GL accounts are used to record claim-on-cash, accounts receivable and other assets, accounts payable and other liabilities, and fund balance. Some GL accounts record specific fund additions and fund deductions as account activity occurs. Others, with related subsidiary ledger (SL) accounts, will carry summaries of the budgets, revenues, and expenditures that are in the SL.
Subsidiary Ledgers (SL)Most SOP accounts are part of a subsidiary ledger (designated SL in the FRS). Trust funds are the exception, and these funds are usually contained only in the general ledger (GL). SLs contain the revenue and expenditure accounts of the University. Each account will show data either on a fiscal year basis or on a project-to-date basis (from the date the project began to the present date). Generally, SOP grants would be on a project-to-date cycle, while State accounts would be on a fiscal year cycle. The basic dollar data shown in these accounts are budgets, revenues, expenditures, encumbrances and budget balance available. Relationship of LedgersIn some cases, there are many SL accounts reporting to one GL account. In other instances, there is a one-for-one relationship between the two ledgers. Any transactions posted to a SL account are automatically posted to their related GL account to update the claim on cash, fund balance and the appropriate summary revenue or summary expenditure control.
Object CodesThese codes are used to record expense/revenue in the SL and are referred to as subcodes. A listing of expenditure subcodes can be found in the Object Codes site. Account ControlsThese controls are four-digit numbers used to record activity in the GL. Account control ranges are defined as follows:
A listing of account controls can be found in ACT Appendix 4.
Form 1099The IRS requires reporting of non-employee compensation more than $600, rents, royalties and payments to lawyers. Form 1099-MISC is used to report eligible payments. Independent ContractorAn independent contractor is an individual who has no employee affiliation with UNC who nevertheless provides a service to the university, such as a consultant, a speaker, or a performer.
InvoiceAn invoice is a vendor-generated list of goods or services that shows prices, terms, quantities, shipping charges, and other particulars sent to a purchaser in request for payment. P-Order (Purchase Order)A Purchase Order is created when a Purchase Requisition is confirmed by Purchasing Services. Normal Purchase Orders (POs) are frequently called P-Orders because their number in the FRS system starts with a "P".
ReceivingReceiving is the function of accepting items of supply. When Purchase Orders are issued, a copy of the original requisition, a copy of the PO, and a receiving report are returned to the requisitioning department [Exception: If a shipment is scheduled to be delivered to Central Receiving (CWS), Computer Repair Center (CRC), or Environment, Health, & Safety (HSO), a receiving report is not sent to the requisitioning department]. UNC cannot pay invoices without a receiving report. Submit the receiving report as soon as goods are received. Online receiving is available to campus departments that have FRS online requisitioning capability.
VoucherA voucher is created through FRS; it shows that services have been performed, or goods purchased, and authorizes payment to be made to the vendor. W-OrderIn the FRS system, standing or blanket orders start a numbering system with a "W" and they are frequently called "W-Orders." A contract under which a contractor or vendor agrees to provide goods or services to a purchaser on a demand basis; the contract generally establishes prices, terms, conditions, and the period covered, although no quantities are specified; shipments are to be made when and as required by the purchaser (also called blanket agreement, blanket purchase, and standing order).
Maintenance contractsMaintenance purchases are charged to the 4411-4413 object code range and should not be purchased on the same purchase order with the equipment unless you do line item accounting. Account Adjustment form (AJ-1)If you credit an equipment object code on a Account Adjustment form, in addition to check #, P.O. #, date and vendor, please reference the decal number assigned to the equipment by Asset Management.
Lease/PurchaseA lease/purchase item should be considered equipment if it meets equipment criteria. The 5111-5519 object code is used for lease/purchase equipment transactions. This type of lease should not be considered a rental agreement. Additions to existing equipmentAdditions to existing equipment must cost $5,000 or more, per item, in order to become part of the original equipment. If you purchase an addition to an equipment item, please reference the original decal number of the equipment on the purchase requisition. An example of addition (if over $4,999) is: additional sorter to a copier additional lens to a microscope NOTE: You may NOT purchase replacement parts or order repairs using the 5111-5519 object code range.
Cash ReceiptsIf you receive a reimbursement from a vendor for: an item that has been returned to vendor, rebate, duplicate payment, etc., reference the decal number and/or purchase order number on the back-up document stating the reason for the reimbursement. EPA EmployeeThe two major groups of permanent employment at the University are referred to as "SPA" and "EPA." EPA positions are exempt from the provisions of the State Personnel Act of North Carolina. Examples of EPA employees include all faculty positions and most research, instructional, and senior administrative positions. EPA faculty positions may be tenure-track or fixed term. EPA non-faculty positions may be time-limited or at-will appointments. For more information, click here.
SPA EmployeeThese employees are governed by the provisions of the State Personnel Act of North Carolina. This includes most staff positions. For an overview of SPA employment, click here. |
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