STRUCTURE OF GENERAL LEDGER ACCOUNTS - 7605-JUN-2005
The Chart of General Ledger Accounts (SAM Section 7610) contains the accounts authorized for use in the state's accounting system. Each department will use the accounts required for its particular fund(s), fund type(s), and financial operations. The Chart of General Ledger Accounts contains basic account attributes, including:
- Account number,
- Account level, and
- Account title.
General ledger accounts are grouped into the following major categories:
|
Account Numbers |
Category |
|
1100–1999 |
Current Assets |
|
2000–2999 |
Long-Term Assets |
|
3000–3999 |
Current Liabilities |
|
4000–4999 |
Long-Term Liabilities |
|
5000–5999 |
Fund Equity |
|
6000–6999 |
Budgetary Accounts |
|
7000–7999 |
Controller's Accounts Only |
|
8000–8999 |
Sources of Financial Resources |
|
9000–9799 |
Uses of Financial Resources |
|
9800–9999 |
Other Financial Sources/Uses |
The general ledger account numbers contain four-digits. The account numbers are structured into three hierarchical reporting levels:
- Level 1—Assigned to accounts used to prepare the Controller's Annual Report; Level 1 account numbers end with two zeros (XX00),
- Level 2—Assigned to major general ledger accounts which are summarized into Level 1 accounts; Level 2 accounts end with one zero (XXX0), and
- Level 3—Assigned to sub-accounts to Level 2 accounts; Level 3 account numbers do not end with zeros (XXXX).
Departments must be able to report accounting information to the lowest hierarchical level. This reporting requirement does not compel departments to maintain General Ledgers at levels 2 or 3. Instead, departments can meet the reporting requirements by accounting for the information in subsidiary records/ledgers (e.g. Allotment–Expenditure Ledger, Revenue Ledger, Accounts Receivable Ledger, etc.) and by maintaining the General Ledger at a more summarized level.
In a few cases, two different account numbers and two different account levels have been assigned to general ledger accounts with the same title. These assignments were made so that "like kind" accounts could be consolidated for reporting purposes.
Whenever a choice exists between using different account numbers for the same account title, departments will use the lower hierarchical level account number (e.g. use Account Number 2341 for Equipment rather than Account Number 2340; use Account Number 3010 for Accounts Payable rather than Account Number 3000; use Account Number 3110 for Due to Other Funds or Appropriations rather than Account Number 3100).
In addition to the four-digit account number, certain general ledger accounts require four-digit subsidiary numbers. Some four-digit subsidiary numbers signify the funds involved in interfund and intrafund transactions. Following are the general ledger accounts which require subsidiary fund coding:
- Account Number 1410, Due from Other Funds
- Account Number 1730, Prepayments to Other Funds or Appropriations
- Account Number 2120, Advances to Other Funds
- Account Number 2170, Interfund Loans Receivable
- Account Number 3114, Due to Other Funds
- Account Number 3120, Prepayments from Other Funds or Appropriations
- Account Number 4010, Advances from Other Funds
- Account Number 4050, Interfund Loans Payable
- Account Number 9811, Operating Transfers In
- Account Number 9812, Operating Transfers Out
Other general ledger accounts also require four-digit subsidiary numbers. These four- digit subsidiary numbers signify the Accounts Receivable, Due From Other Funds and Other Long-Term Debt accounts involved in the transactions. Following are the general ledger accounts which require four-digit subsidiary account coding:
- Account Number 1390, Allowance for Uncollectible Amounts
- Account Number 1600, Provision for Deferred Receivables
Examples: 1390.1311—Allowances for Uncollectible Accounts–Accounts Receivable–Abatements
1600.1313—Provision for Deferred Receivables–Accounts Receivable– Revenue
1600.1410—Provision for Deferred Receivables–Due from Other Funds
The purpose and nature of general ledger accounts are contained in SAM Section 7620 through 7680.