UCLA has begun the process to implement a revised Chart of Accounts when we launch the Oracle financial system.
What is a Chart of Accounts?
The Chart of Accounts, or CoA, is the basic structure used to categorize financial transactions to provide meaningful reporting in Oracle Cloud (Ascend 2.0).
Differences from the FAU
- Unlike the FAU structure, the CoA has a multi-dimensional, or matrix-style, structure with multiple segments where each segment captures a specific defined attribute of the transaction.
- Today, information is commingled in FAU segments – for example, the Account segment contains NACUBO functional expense classification and organizational information. There will not be commingling of important attributes of a transaction in the new CoA.
- The CoA will only have defined value sets, unlike the current FAU structure, which has certain free-form fields. This will result in more consistent and reliable financial reporting.
- The Oracle Cloud financial system requires each CoA segment to have a value when entering a transaction. For certain transactions, where not all segments are required, the new system will auto-populate a default value. In the current mainframe system, some segments of the FAU can be blank on certain transactions.