Overview
This article will provide general guidelines on when and how to properly use select series of Accounts starting with 77.
Critical Concepts
- University of California Office of the President (UCOP) requires all Accounts under OFC hierarchy 77000B Internal Recharge to net to zero at Fiscal Year End, which means that all Accounts starting with 77 must net to zero
- For example, if a transaction posts with a Debit to an Account starting with 77, simultaneously a Credit should be posted to an Account starting with 77
- Accounts starting with 77 are listed under the Expense Account hierarchy and will follow the inherent nature or Expense Accounts
- UCOP defines the hierarchy number and name 77000B Internal Recharge and within the hierarchy level, UCSD has its hierarchy level E Accounts that are required to net to zero
- Starting FY24, there will be an exception to the net zero rule for Fabrications where 77**** Expenditure Types can be paired with select 163001 Expenditure Types (due to available functionality and new processes implemented under the Fixed Assets module)
Overview of Accounts
Accounts used by Recharge Operations - (770****/775****)
- A Recharge Activity is a Sales and Service Activity (SSA) that provides specific, ongoing, repetitive goods or services to campus units and
- The Department receiving the goods/service will get a Debit to an Account starting with 770****
- The Department providing the goods/service will get a Credit to an Account starting with 775***
- The net balance of Accounts in 770**** and 775*** must be zero at Fiscal Year End
Accounts used for Recharge Mechanism with General Projects - (772****/777****)
- For Departments with non-sponsored projects with recharges, the Debit and Credit Account pairs will be 772**** and 777****, respectively
- Recharge transactions with any Federal funding are not permitted in this series of Accounts
- The net balance of Accounts in 772**** and 777*** must be zero at Fiscal Year End
Cost Distribution (Debit/Credit) - (773****/773****)
- Both the Debit and Credit must be in same Account number when using Accounts prefixed with 773****
- Use of Accounts under Cost Distribution hierarchy is limited and should be used sparingly
- These Accounts are not to be used for Cost Transfers or for instances where incorrect Expenditure Types are assigned
- Transactions posted to these Accounts under this hierarchy are permitted upon review and generally are for highly complex calculation of various expenses that require bundling
Fund Balance Transfer (Debit/Credit) - (774****/774****)
- Both the Debit and Credit must be in Accounts prefixed with 774****
- For Departments, these Accounts are used for resource or fund transfers
- Select Accounts in this series are also used by Central Offices
Intercampus Recharge (780****/785****)
- These Accounts are used for transactions between two UC locations
- The location recording the Debit entry will use 780****
- The offsetting Credit will be recorded using Accounts in 785****
- The consolidated balance of Accounts in 780**** and 785*** must be zero for each entry
If you need guidance pertaining to this topic, please submit a ticket and select the following options to be directed to Internal Controls & Accounting (ICA):
About: Financial Accounting
Related to: General Accounting Support
More Specifically: Other General Accounting Inquiry