Accounting Terminology


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Non-Exempt / Nonexempt
Refers to employees who are subject to the provisions of the Fair Labor Standards Act. These employees are also referred to as "biweekly employees".
Non-resident Alien
If a person does not meet either the Green Card or Substantial Presence Test, then that person is classified as a non-resident alien.

A new arrival on a J-1 or F-1 visa is generally a non-resident alien.

Non-resident aliens are taxed only on their income from sources within the U.S. and on certain income connected with the conduct of a trade or business in the U.S.
OMB Circular A-133 Audit
Effective July 1, 1990, universities and other non-profit institutions must have audits conducted in compliance with OMB Circular A-133 "Audits of States, Local Governments, and Non-Profit Organizations". Auditors are required to determine if: (a) fund statements are presented accurately; (b) Duke has an internal control structure that provides reasonable assurance that federal awards are being managed properly and ensures compliance with laws and regulations that could have material effect on the fund statements; and (c) Duke has complied with those laws and regulations that could have a direct and material effect on its fund statement amounts and on each major federal assistance program.

When Duke awards federal funds to a subrecipient, OSP is also required to maintain and review a Subcontractor's audit report if the Subcontractor has spent $500,000 or more in federal funds in a fiscal year. If the Subcontractor's audit report indicates a finding that may affect the Subcontract, OSP is required to follow up on the action taken by the Subcontractor to correct the finding.
OMB Circular A-21 Cost Principles for Educational Institutions
The cost principles in A-21 provide the general accounting "rules" that the University must follow in regards to determining costs applicable to grants, contracts, and other agreements with educational institutions. These principles define those costs that are allowable and allocable to the Federal Government.

Issues on cost determination center on Facilities and Administrative (F&A) costs versus allowable direct costs and unallowable costs.
Org Key - Organizational Key
On forms, this will be a 4-character field; it consists of the old "pay point" prefaced with two letters, depending on the organization.
DD Duke University and Duke Hospital
DR Durham Regional Hospital departments
RC Duke Raleigh Hospital departments
Organizational (Org.) Code
Departmental position code within the company code structure.
Also referred to as "BFR Code".

The BFR code is a series of ten digit codes within the General Ledger that provides a five level organizational hierarchy structure. Every position and cost object at Duke will be linked to a BFR code at some level in the hierarchy.
Organizational Unit
An organizational unit is an eight-digit number that represents the hierarchical organizational structure with regards to HR and Payroll in the SAP system. For example, these eight-digit numbers can represent a department within the School of Medicine or a school within the Provost area. One example of an organizational unit is 50000393, which represents Cardiology within the Department of Medicine.

The term Organizational Units pertains to the HR and Payroll functions for both the University and Health System companies, while the term Org. Units pertains to a similar concept of a hierarchical structure for financial reporting purposes for Duke University.
OSP
Abbreviation for "Office of Sponsored Programs"
Personal Property
Includes all types of property except real property, naval vessels, and governmental records
Personnel Area
A value that represents an organizational entity or location within Duke for HR and Payroll purposes, such as 1000 for Duke University, 1100 for the School of Medicine, 2000 for Duke Hospital, etc.
Plant
A Plant is an organizational unit within Duke where either materials are purchased or goods and services are provided. A key attribute in MM and AM modules, a four-digit Plant code corresponds to a Company Code (0010, 0020, 0030, etc.).

Some Plants include:
DUKE = Duke University (0010)
DUHS = Duke University Health System (0020)
DHSP = Duke Hospital (0030)
DUAP = Duke University (0010)
DRHS = Durham Regional Hospital (0050)
DHRH = Duke Health Raleigh Hospital (0060)
Posting Date
The Posting Date determines the posting period and defines in which fiscal period a document will post (regardless of the Document or Entry date). The periods that are permitted for posting are determined by Accounting Services. This is the date that G/L Account Balances are updated. The Posting Date will override the Fiscal Period entered on a document if they are different.

Note: It is possible that an invoice was issued with a Document Date of 6/15/98, entered into SAP on 7/15/98 (Entry Date) with a Posting Date of 6/30/98 (to post the Document in the previous fiscal year). Many times, all three of these dates are the same.
Posting Key
A two-digit numeric key that controls the entry of document line items. The key specifies the following for example: account type, debit or credit posting, or layout of entry screens.

The most common examples are:

40 = Debit
50 = Credit
Posting Period
The posting period is a period of time within a fiscal year during which transactions can be posted and transaction figures can be updated. Duke's posting periods are based on the Fiscal month periods per the Fiscal Calendar distributed by the Financial Services division.
Premium
In reference to Fixed Income Securities: The excess of the amount paid for a fixed income security, excluding purchased interest, over its par or face value.
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