Understanding Changes to the Chart of Accounts in IC Finance Cloud

Note: The changes to usercodes are for purposes of conversion to IC Finance Cloud only; please continue using your existing 3-digit usercodes for all current business (including the budget process for FY2020-21).

As outlined in the previous communications regarding the migration from Parnassus to Oracle ERP Cloud (IC Finance Cloud), the chart of accounts is expanding from 21 digits to 28 digits, and from 7 segments to 10 segments.

The purpose of this document is to give end users a comprehensive understanding of the changes to the chart of accounts.

Overview of Changes

The update to the chart of accounts consists of three main changes:

  1. Replacing the Division segment with the new Entity segment
  2. Adjusting the length of the Usercode segment
  3. Adding three system-generated segments

Only the change to the Usercode segment has a significant impact on end users.


Segment 3: Division will be replaced by Entity

The change to Segment 3 (currently Division) requires no action from departments. During conversion, all active Parnassus accounts will adopt a value of 01 for our new Entity segment. This change results from a strong recommendation, made by our implementation consultants, to help prepare the college’s chart of accounts for potential needs in the future.

In IC Finance Cloud, Divisional reporting can be achieved using a more advanced feature known as reporting hierarchy; consequently, there is no longer a business need to maintain Division values in this segment.

Intercompany and Future

The addition of segments 8, 9, and 10 requires no action from departments.

  • Segment 8 – Intercompany:
    • This segment will be automatically populated based on the nature of underlying transactions.
    • End users need not pay attention to the value in this segment.
    • Financial services will use this value for purposes of preparing the college’s annual financial statements.
  • Segments 9 and 10 - Future Segments:
    • Both of these segments will be 00.
    • Similar to the Entity segment, these segments will help prepare the college’s chart of accounts for potential needs in the future.

Usercode

The change to the Usercode segment from 3 digits to 4 digits will require departments to adapt to a change in the Usercode scheme.

In Parnassus, the 3-digit Usercode segment values are dependent on the Department segment. For example:

  • Department 100 can deploy usercode 001 and name it Research.
  • At the same time, department 200 can deploy usercode 001 and name it Laboratory.
  • Therefore, usercode 001 has a unique name for each department.

In IC Finance Cloud, the 4-digit Usercode segment value is independentof the Department segment, which requires us to move to a 4-digit Usercode in order to provide enough usercodes for all departments across campus. For example:

  • Department 100 can deploy usercode 1001 Research.
  • If department 200 deploys usercode 1001, the segment name will automatically be Research.

Understanding the Change to Usercode

The Office of Business and Finance will work with you to convert your 3-digit usercodes to 4-digit usercodes in a manner consistent with a sequential scheme devised to accommodate the college as a whole.

  • College-wide usercodes: Some current usercodes are used uniformly across the college, such as those in the recruiting range 810 to 869. In the future, all college-wide usercodes will be assigned to the range 0000 to 0999. For example: Usercode 810,Recruit-Non-exempt staff, will become 0810.
  • Travel usercodes: Some departments deploy usercodes to track travel expenses for individual employees. The new travel expense module in IC Finance Cloud eliminates the need to track travel with usercodes; accordingly, travel usercodes can be eliminated, and accounts can use the default value of 0000.
  • Division and/or Department specific usercodes: All other existing usercodes will require conversion to a 4-digit scheme that differs from the existing 3-digit scheme.
    • For example: The School of Business will be allocated the range of 3000 to 3499. All existing department-usercode combinations (other than college-wide and travel usercodes) must be converted from 3 digits to 4 digits within this range of unique values.
    • The Office of Business and Finance has set aside sequential blocks of usercodes for each major operational area on campus.

College-wide usercodes available to all departments

Refer to the documentList of User Code Ranges for Use in IC Finance Cloud available on the Office of Business and Finance website. As our needs as an organization change, additional values may be added to this list.