Guide to R/3 Financial Accounting Codes

  1. How Account Codes are Used in R/3
  2. Company Codes
  3. Recognizing Codes
  4. How to Determine the Company in which a Code is Used

 

How Account Codes are Used In R/3

In R/3, Duke's accounting system, the general term for the account code is cost object. The cost object is further broken into three kinds of codes: cost center, a profit center, and WBS (Work Breakdown Structure) element.

The 6-digit G/L account works with the cost object to define the nature of transactions. For assistance in determining what the name of the cost object is refer to How to Determine the Company in which a Code is Used.

Cost Object G/L Account
- cost center - 6-digit G/L account code
- profit center  
- WBS element  
- 7 digits when used in Company 0010
- 9 digits in Health System company codes (0020-0060)

 

Company Codes

 

Recognizing Codes

To determine where and how a code is used, ask "How many digits?"

Six Digits:

The G/L account designates the type of revenue, expense, or balance sheet item being recorded by a transaction. The first four-digits are followed by "00" or in some cases, by "01" or "03" to further categorize the G/L account.

Example: 691800 Contributions and Prizes also is further broken into:

691801 Organizational Charitable Gifts
691802 Charitable Gifts
691819 Prof Liability – Media

Note: Health System companies (0020-0060) do not use the recharge G/L accounts (7xxxxx).

Seven Digits:

In R/3, company code 0010 (Duke University) uses seven-digit codes for cost centers, profit centers, or WBS elements.

For more information on the determination of the name of the code, refer to How to Determine the Company in which a Code is Used.

Example: 1571234

Nine Digits:

A nine-digit code could be either a cost center, profit center, or WBS element in the Health System company codes (0020-0060).

For more information on the determination of the name of the code, refer to How to Determine the Company in which a Code is Used.

Example: 301061234

CAUTION!

Never use hyphens in R/3 in cost center and profit center codes. For example, 1573124 is a Company 0010 cost center in R/3.

Some WBS elements in R/3 use hyphens, but only those used by the DCRI and some construction projects. There are nine- and eleven (0010)/thirteen (0020-0060)-digit WBS elements. Those use the first hyphen after the seventh (0010) or ninth (0020-0060) digit. Other hyphens may occur after that depending on the level of the further break down.

Example: 7220020-07-01.

 

How To Determine the Company In Which A Code is Used

This section explains how to determine to which company code an R/3 cost center, profit center or WBS element belongs. There is a more detailed explanation available about the meaning of cost objects.

Company Code 0010

Company 0010 (Duke University) uses 7-digits as the basis for cost centers, profit centers, and WBS elements (Work Breakdown Structures). In general, the following entities are in Company 0010, Duke University:

Cost Centers

The following are cost centers in Company 0010.

Profit Centers

The following revenue profit centers in Company 0010.

WBS Elements

The restricted fund series and the plant fund series are 7-digit WBS elements.

Health System Company Codes (0020-0060)

Health System company codes have an account code structure that is a nine-digit code structure. The structure incorporates sight recognition to identify functional areas or clinical business units.

The nine-digit cost object is set up to enable sight recognition. The first two digits are the last two digits of the company code. The third digit designates the functional area, and the fourth and fifth break down the functional area further. The last four digits are assigned sequentially.