FAQ: Chart of Accounts

Topics

About the Project

What is the Chart of Accounts? How is the new Chart of Accounts different from the current Full Accounting Unit?
The Chart of Accounts, or CoA, is the basic structure that UC Davis uses to record and organize financial transactions to facilitate financial reporting. Chart of Accounts segments serve as the common language for financial transactions whether they are created directly in the financial system, generated in another major university system, or created through a local third-party application. However, it may not serve the detailed fiscal tracking of all institutional activities. Some detailed information currently stored in the FAU will instead be captured within other modules (e.g., subledgers) or functionality of the new Aggie Enterprise system.
The future state Chart of Accounts will:
- • Replace the Full Accounting Unit (FAU) structure.
- • Organize UC Davis finances by separating assets, liabilities, net position, expenses and revenues to provide a clear understanding of the university’s financial status. 
- • Support financial and management reporting by serving as the basis for the fiscal administration of UC Davis funds, programs, projects, and activities.
- • Organize data in the general ledger (GL) for reporting out of the financial system.
The new UC Davis Chart of Accounts will differ from the current FAU through several key features:
- • More visible segments: Attributes currently embedded in the KFS Account value – Fund, Org Unit, and Higher Education Function Code (HEFC) – will have their own distinct and visible segments in the new Chart of Accounts. Fund is represented in the new CoA Fund segment, Org Unit is represented in the Financial Department segment, and HEFC is represented in the Purpose segment.
- • Multidimensional, matrix-style structure: The majority of values will be shared broadly across UC Davis, with transactors simply selecting the combination of segment values to meet their needs.
- • Established hierarchy: Each segment of the new Chart of Accounts has hierarchy levels, designed for consistency across the enterprise. Hierarchies establish a child level for posting transactions, and a series of parent and grandparent levels to aggregate summarized data.
Download the Chart of Accounts Resource Guide to explore all CoA resources in recommended viewing order.
Why does UC Davis need a new Chart of Accounts?
UC Office of the President requires all UC locations to report financial transactions in the new Common Chart of Accounts format beginning July 1, 2023.

Redesigning the Chart of Accounts will help resolve many of the financial management and reporting challenges faced by UC Davis today. The current Full Accounting Unit (FAU) values are used inconsistently across UC Davis. In contrast, segments within the new CoA each have a distinct definition and function, and values will be administered by a Master Data Governance policy. This consistent, standardized CoA will support more reliable and accurate financial reporting.

The new CoA will also serve as the foundation of the new Aggie Enterprise system, supported by Oracle, going live on January 1, 2024. Working on these two efforts in tandem, allows us to maximize system configuration and functionality while avoiding costly rework in the future. 

Watch our sponsor video to learn more. 
The UCOP Common Chart of Accounts requirement is effective July 1, 2023, but Aggie Enterprise go-live isn't until January 1, 2024. How will that work?
In terms of transacting, KFS users will continue to transact in KFS, using the current Full Accounting Unit (FAU) through December 31, 2023. When Aggie Enterprise goes live on January 1, 2024, KFS users will transition to the new Aggie Enterprise system and begin transacting with CoA values.

Boundary systems, including UC Path, will continue using the current FAU structure through 2023. Systems reconfiguration to the new CoA structure will align with Aggie Enterprise go-live on January 1, 2024.

The reporting timeline looks a little different. In order to meet the UCOP requirement, Central Finance and Financial Systems teams have developed an interim reporting solution. From July 1, 2023, through December 31, 2023, they will work behind-the-scenes to translate FAU data into the new Chart of Accounts format for reporting.

The interim reporting will be a lot of work, and requires that our Chart of Accounts be stable. That stability relies on two things:
- • Mapping Review: Department CoA Mappers have worked diligently over the past 9 months to review FAU to CoA Mapping for over 400,000 KFS FAUs. Their hard work and collaboration with the CoA team helped correct mapping issues, identify value gaps, and build a more stable Chart of Accounts. With the implementation of Data Governance (see below), these reviewers will continue to provide mapping feedback as we approach go-live.
- • Data Governance: Formal Chart of Accounts Data Governance has been implemented in KFS effective July 1, 2023. As part of this Data Governance process, units will be required to provide FAU to CoA mapping each time a new KFS value is requested. Additional details about Data Governance and requirements when requesting new values can be found on the Data Governance webpage.
How did we arrive at the new Chart of Accounts structure?
The Chart of Accounts (CoA) structure is based on the UC Common Chart of Accounts (CCoA), developed and approved by the UC Office of the President in 2014.

To arrive at the final CoA structure for UC Davis, the Chart of Accounts project team deployed a phased approach to engage with stakeholders and subject matter experts (SMEs):
- • Discovery: Information and requirements gathering sessions with units across UC Davis
  
  • Proof of Concept: Scenario demonstration and validation of prototype CoA
- • CoA Advisory Group: Meetings with SMEs from across UC Davis who provided feedback on key design decisions and critical UC Davis specific requirements
In addition to stakeholder feedback, the segment design and definitions were vetted against leading industry practices and lessons learned from other higher education institutions, including UC San Diego and UC Merced.

As the foundation of the Aggie Enterprise system, our final Chart of Accounts structure was designed to make the most of Oracle Cloud Financials configuration and functionality.

For more details on the design process please visit the Chart of Accounts prototype webpage.
Who is impacted by the new Chart of Accounts?
The new Chart of Accounts (CoA) will impact everyone who currently submits or reviews financial transactions in Kuali. Additionally, the new CoA will also impact owners and users of boundary systems -- systems that currently send or receive FAU values to and from KFS.

Boundary systems that will integrate with Oracle in the future will be reformatted to the new Chart of Accounts segments. Approximately 70 applications are expected to interface with Oracle as boundary systems and will need to be refactored to align with the new UC Davis Chart of Accounts.

Examples of boundary systems include:
• Banner
• CASHNet
• Online Pre-purchasing (OPP)
Is there consideration to how we will crosswalk current Full Accounting Unit chart strings to the new Chart of Accounts?
Value mapping, or creating a crosswalk, is a very complex, time-intensive process. Our current FAU includes embedded data within the KFS Account, whereas the new Chart of Accounts has distinct segments for these data elements. There will be the ability to crosswalk legacy KFS values to the CoA, however, the new Chart of Accounts will be a very different structure than our current FAU, so these translations may be many-to-one.

Beginning in August 2022, designated mapping reviewers for each unit began reviewing mapping templates of their KFS accounts, with the opportunity to review the baseline FAU to CoA value mapping and identify any gaps or errors. Thanks to the hard work of these department mappers, more than 400,000 KFS FAU values have been reviewed. Through partnership with the CoA team, each unit’s mapping template continues to be refined, ultimately building unit-specific FAU to CoA crosswalks.

To support collaboration, there is also strong interest in a UC Davis-wide crosswalk, and a formal request has been submitted to the project team. The project team is exploring potential crosswalk tools, including an option to combine the department mapping templates. More information will be shared as the mapping work progresses.
Can we utilize a segment in the new Chart of Accounts to display legacy KFS values (e.g., the KFS Account number) to help us map new transactions to legacy data?
With such varied use of KFS FAUs across UC Davis, and the embedded attributes in the KFS Account, it will not be possible to have a meaningful link between a single KFS value and the new matrix-style Chart of Accounts.

The CoA team recognizes the need to be able to crosswalk between legacy KFS FAUs and Oracle. We are researching the various mapping tools that can be utilized to address that need. When a solution has been identified, we will share it with stakeholders.
Will the existing chart cleanup be part of Chart of Accounts mapping, or a separate effort?
These will be two separate efforts, however, since data clean-up contributes to more accurate and meaningful mapping, there will be overlap and coordination between the two.

The Chart of Accounts (CoA) project team continues to engage with department mapping reviewers to:
- • Understand the use of current FAU values to ensure accurate translation to the new CoA
  • Validate that mapping rules are correct to convert data into the future chart
  • Develop crosswalk tables to aid departments in identifying mapping of the legacy CoA to the future CoA
Data cleanup will continue as we approach go-live, and will include departments evaluating their existing data for:
- • Confirmation of accurate account balances
  • Accounts that may be appropriate to deactivate due to lack of use
  • Opportunities to close out or consolidate accounts with small balances
Please download the Preparing for Aggie Enterprise checklist for guidance on clean-up activities.
Will the clean-up of the current accounts be done centrally, or will each department have to do their own clean-up?
Each unit knows their own current structure and practices best, so we will ask departments and units to lead their own data clean-up. A Preparing for Aggie Enterprise checklist has been developed to provide guidance for data clean-up activities and will be updated as additional opportunities are identified. This checklist will continue to be refined as the project moves forward.
How will the Chart of Accounts effort interface with the new accounting system planning? How might this impact CoA design, including character limitations, coding requirements and any aspects of the elements themselves that have been pre-defined by the UC Office of the President?
Our future state Chart of Accounts (CoA) has been designed and developed to meet our local needs within the parameters of the Common Chart of Accounts (CCoA), defined by the UC Office of the President. The actual character values are, at some level, determined by UCOP for reporting across the UC system.

Like UCOP, UC Davis will be implementing Oracle Cloud, so the character elements and numbering system structure will be similar. For segment values unique to UC Davis, we will keep flexibility and scalability in mind as we design segment lengths and value schema (numeric vs. alpha-numeric) to accommodate future growth.

Segments and Values

Why are there so many chart segments in the new Chart of Accounts?
The eleven segments in the new UC Davis Chart of Accounts allow greater flexibility in how we use the chart to support our business and reporting needs.
- • The Entity, Fund, Financial Department, (Natural) Account, Purpose, Program, and Project segments are aligned with the UCOP Common Chart of Accounts.
- • The Activity segment was added for UC Davis business and reporting requirements, informed by our stakeholder outreach.
- • The Inter-Entity segment is a system-generated segment used to support balancing functionality in Oracle.
- • Two Future segments are designated for future use by UCOP, as needed.
The new Chart of Accounts maximizes the concept of a matrix-style chart by reducing duplicate values and allowing the use of shared values across multiple units.

Each segment has a single use with a distinct and consistent definition and use criteria.  When combined, these segments will tell the unique story of each individual transaction.

Download the CoA Quick Reference Guide for the Chart of Accounts at-a-glance. 
Are all Chart of Accounts segments required?
All segments will require a value in Oracle, but some values may be zeros.
The new Chart of Accounts includes eight transactional segments.
Four segments require entry of a valid value for all transactions:
      • Entity
      • Fund
      • Financial Department
      • (Natural) Account
   The system will alert transactors if one of the required fields is not populated.
- The remaining four transactional segments may require entry of valid values, depending on the type of transaction and departmental requirements. If no value is required, users will enter zeros in these segments: 
  - • Purpose – required for expense transactions
  - • Program – required for UCOP or UCD sanctioned programs; or based on departmental requirements
  - • Project** – required if there is a GL-only project associated with the transaction
  - • Activity – based on departmental requirements
Additionally, the CoA includes three system-generated segments. These segments will be visible to transactors, but values in these segments will be populated with zeros by the Oracle system:
- • Inter-Entity
- • Future 1
- • Future 2
** Transactions related to sponsored research, capital projects, faculty projects or other PPM designated projects will require processing in the PPM module, using the POET(AF) string. The POET(AF) Project value will roll up to the Project segment in the Chart of Accounts. 

Download the Chart of Accounts Resource Guide to explore CoA and POET(AF) resources.
Currently, UC Davis uses several chart values (3, L, S, H, M, P, etc.). Will we continue to use multiple chart values?

The current chart structure will be changing, so the information we currently think of as “charts” will now be built into the “entity” segment. Entity will delineate operational units with their own Federal Tax Payer Identification number, special reporting needs and/ or separate audit requirements.

With its small value set and largely 1:1 relationship to KFS Chart values, Entity lends itself to a simple crosswalk, available on the Entity Quick Reference Guide.

The baseline Entity values for UC Davis are:

Value	Value Name	Value Definition
3110	UC Davis Campus (Excluding School of Health)	Posting value for UC Davis Campus excluding the Schools of Health (School of Medicine and The Betty Irene Moore School of Nursing)
3111	Schools of Health	Posting value for UC Davis' School of Medicine and The Betty Irene Moore School of Nursing
3116*	Aggie Square	Posting value for Aggie Square. *This is a placeholder value for future use and is not currently active.
3120	CHF - West Village	Entity for Collegiate Housing Foundation (CHF) West Village
3121	CHF - Orchard Park	Entity for Collegiate Housing Foundation (CHF) Orchard Park
3210	UCD Medical Center	Posting value for UC Davis Medical Center operating units
3299	UCD Medical Center - Elimination Entries	Posting value for UC Davis Medical Center entries to record accounting entries required for University of California Office of the President reporting processes and procedures
3310	UC - ANR	Posting entity value for Agricultural and Natural Resources (ANR)
3410	UCD - UCOP	Reserved for UCOP entries
3710	UC Davis Foundation	Posting entity value for UC Davis Foundation
3810	Cal Aggie Alumni Association	Posting entity value for Cal Aggie Alumni Association (CAAA)

Can entity be derived from financial department?
Entity cannot be derived from financial department. Transactors will need to select the appropriate Entity value when entering a transaction because some financial departments may be associated with multiple entities.

For example, the College of Agricultural and Environmental Sciences (CA&ES) is a UC Davis campus Financial Department, but they also work closely with Agriculture and Natural Resources (ANR). There may be a need for CA&ES to associate transactions with UC Davis Campus and UC-ANR entities.
Will all entities have the same (Natural) Account values available to them?
No. While the majority of (Natural) Account values are shared through the matrix-style chart, some values will be unique to a single entity. Cross Validation Rules (CVRs) and value sets will be used to prevent incorrect value combinations.
Will the Chart of Accounts Financial Department structure have any bearing on the HR Department?
No. As confirmed by Employee and Labor Relations, the Financial Department value in Oracle will not have any impact on HR Department structure (e.g., for purpose of layoff units). UC Path will still be considered the system of record.
Will the Financial Department posting level in the Chart of Accounts align with the UC Path HR department?
To begin the development of baseline Financial Department values there were initially efforts made to align with UC Path HR departments; however, business needs required that we branch out from the UC Path structure.

There is no requirement that the Financial Department value align with a UC Path HR Department value.
How do CoA Financial Department values align with KFS Orgs?
Parent level 4 of the Financial Department hierarchy classifies the College, School or Division. This aligns with KFS Org level 4.

Users will find increasingly more detailed department and sub-department values within their units in Parent 3, Parent 2, Parent 1, and finally, the Child/ Posting level. Current CoA values tables are available for users to explore the Financial Department hierarchy and other CoA segments.
Will assignment of Principal Investigator (PI) still be a component/attribute of the Chart of Accounts?
Principal Investigator and Co-PI will both be tracked in the Project Portfolio Management (PPM) subledger module as part of the Award and PPM Project. It will not be an attribute of the new Chart of Accounts.
How will Chart of Accounts values be determined?
Background
Value development began with the foundation of the UCOP Common Chart of Accounts (CCoA), which has defined certain hierarchy levels and values that are commonly used across all UC campuses. The CoA team analyzed existing FAU values against UCOP CCoA requirements and reached out to departments to understand their use of the current FAU structure. This review helped the team identify potential gaps, as well as opportunities for value consolidation and data cleanup. 

From that analysis, the CoA team completed an initial value mapping to develop baseline CoA values, mapping the KFS FAU data and translating that data to the new Chart of Accounts. These baseline values accounted for approximately 80 percent of the total values for the Chart of Accounts, including shared values to be used across UC Davis. 

To develop the comprehensive list of values, the CoA team launched a mapping review process with departments in Fall 2022. Department mappers reviewed more than 400,000 KFS FAUs to determine any mapping corrections or new CoA value needs. This review identified the remaining 20 percent of values needed to address individual department business requirements and stabilize the new Chart of Accounts to meet the UCOP reporting requirements on July 01, 2023.

Current
Effective July 1, 2023, Data Governance has been implemented in KFS to manage new KFS and CoA value creation. From July 1st until go-live, units will submit value requests in KFS and ServiceNow, and Central Finance will review requests against CoA Guiding Principles. Additional information about Data Governance and the requirements for requesting new values can be found on the Data Governance webpage.

Future
Data Governance will continue after go-live, with departments using ServiceNow to request new Chart of Accounts values.
Will values be numeric or alpha-numeric?
The value schema has been determined for each segment of the Chart of Accounts:
• Entity: Numeric

• Fund: Alpha-numeric

• Financial Department: Alpha-numeric

• (Natural) Account: Alpha-numeric

• Purpose: Numeric

• Program: Alpha-numeric

• Project: Numeric

• Activity: Alpha-numeric

• Inter-Entity: Numeric (system-generated)

• Future 1 & Future 2: Numeric (system-generated)

Download the CoA Quick Reference Guide for the Chart of Accounts at-a-glance. 
How will Chart of Accounts values be managed?  Can departments create their own values for the various segments?
Chart of Accounts values are considered part of UC Davis Master Data, which will be managed centrally under formal Data Governance. Departments will be able to request new values, but the values will be created by the central teams based on CoA Guiding Principles and the established segment definitions and hierarchies.

To meet the UC Office of the President reporting requirements Data Governance has initially been implemented in KFS, effective July 1, 2023, to manage the creation of new KFS FAU values. Each new KFS value will need to be mapped to the new CoA structure using the FAU to CoA Mapping Template, and requests that require new CoA values will be submitted in ServiceNow. Visit the Data Governance webpage for additional information and guidance.

Data Governance will continue when the Aggie Enterprise system goes live on January 1, 2024. Given the complexities of Oracle, when a new value is set up, additional oversight and support is needed to ensure that values are linked to the correct reports, and that cross-validation rules and boundary applications are updated accordingly.