Accounting Terminology


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Project
A Project outlines all the pieces or steps of a project, including the Project Definition and the WBS (Work Breakdown Structure) in both a graphic and spreadsheet type format. At Duke, a Project is defined as any "fund code" with a beginning and ending date. Therefore, all fund codes beginning with 3xx and 7xx are managed as Projects in the PS module. These include the restricted funds, clinical trials (Duke Clinical Research Institute - DCRI), construction funds, and capital acquisitions (mainly for the Health system Company Codes 0020-0060).
Project Costs
All allowable costs, as set forth in the applicable sponsors cost principles, incurred by a recipient and the value of the contributions made by third parties in accomplishing the objectives of the award during the project period.
Project Definition
The framework laid down for all of the objects created within a project. The Project Definition contains dates and other organizational information that is binding for the entire project.
Purchasing Group
A Purchasing Group is a grouping of departments or areas that purchase in SAP used for assigning Purchase Requisition approval rules. The Purchasing Group field is a required field on a Purchase Requisition and is assigned to each authorized SAP user that is part of that Purchasing Group. For example, several users from the same department or area may use the same Purchasing Group.
Reconciliation
Verification of financial transactions
Resident Alien
To be classified as a resident alien, the individual must meet one of two tests:

1. Green Card Test


A non-resident alien is a lawful permanent resident of the U.S. at any time if they have been given the privilege, according to the immigration laws, of residing permanently as an immigrant. This status usually exists if the Bureau of Citizenship and Immigration Services has issued a green card.



2. Substantial Presence Test


A non-resident alien is classified as a resident alien for tax purposes if they were physically present in the U.S. for 31 days during the current year and 183 days during a three-year period that includes the current year and the two years immediately before that.

Revenue Fund
Profit Centers in the 111xxxx thru 140xxxx series.
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.
WBS - Work Breakdown Structure / Work Breakdown Structure Element (WBSE)
The Work Breakdown Structure (known as WBS) is the hierarchical representation of activities and actions to be carried out on a Project. The activities and actions that make up the Work Breakdown Structure are known as the WBS Elements. Revenue and expense transactions are posted to each WBS element (node) of the Project. Reporting can be done on each WBS Element or the WBS for the Project as a whole.

On forms, this code designates where the payroll and related expenses are charged. Note: nine digits for the Health System and seven digits for the University
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