Accounting Terminology


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Service Category
(for company code 0010 (University) only)
The third and fourth digits of the appropriate G/L account.
Service Centers
Departments or activities that provide goods or specific technical or administrative services for internal University operations and charge the user directly for these goods/services. Examples are Office Products/Services, Bulk Mail, Medical School Labs, NMR Facility, Computer Science Lab, etc
Service Type
(for company code 0010 (University) only)
The first two digits of the appropriate G/L account.
Settlement
Currently, Duke is using Settlement in SAP to "settle" the expense of a major construction Project, such as a building, from a Project to an Asset (capital acquisition) once complete. Also, Settlement is being used for minor construction Projects (under $100,000) in SAP, to "settle" the expense of the Project to departments/divisions who are funding the Project. This Settlement is done monthly and replaces a manual Journal Voucher done monthly in the past.

Settlement works as follows: the costs incurred in a Project on one or more receivers is automatically accompanied by corresponding credit postings to the Project itself. The costs settled are recorded on the relevant receiver. Debit postings assigned to the Project remain on display even after Settlement. Settlement can be performed as a simulation or an update.
Spread Codes
Spread codes define how the budget is distributed across the months. After budget development, the University Budget Office assigns the spread that was designated to a particular fund/G/L Account combination based upon the previous year spread. (For example, the initial spreads for the FY10 budget will be the same as those for FY09.) New fund/G/L Account combinations will receive the default 12 month spread (AAA). Spread codes can be changed in the budget modification file. Factors selected by the department and applied to the budget by G/L account within cost object; factors determine how the budget is calendarized throughout the fiscal year. Calendarization is reflected in SAP and BW.
State Use Tax
All purchases "consumed" in the operation of an organization are subject to state and local use tax, unless specifically exempted by statute. The party paying the tax uses the term use tax. The terms sales and use tax are frequently used interchangeably on purchases for operational needs, causing confusion at times.