Coding

Expense Account Codes

Applicable or Related Code Sections

ORC Section 126.21(A)(2) - Accounting duties of director of budget and management

Related Links

The purpose of account codes is to organize financial information, segregating expenditures, revenue, transfers, assets, liabilities and fund balance. The account codes are a tool used in preparing the State of Ohio Financial Statements, and are used to give interested parties a better understanding of the state's financial position.

Expense Account Code Structure

Expense account codes are 6 digits numbers that are grouped to enable analysis and control at varying levels. The first digit represents the type of account code, all expense account codes begin with a "5" which designates it as an expense. Other types of account codes exist, for example, revenue account codes begin with a "4" which classifies it as revenue in OAKS.

Selecting Account Codes

The expense account codes are deliberately broad and agencies must use the expense account code that is most similar to the good or service being purchased. Two resources are available to search account codes:

The OAKS BI report (GL-0075 Chartfield Configuration) provides the account code, effective date, extended definition and attributes assigned for all active and inactive account codes; and
The OAKS FIN Account Code Table section of the FIN SOURCE enables agencies to search by account or key word.

Agencies must consider the cost of the item being purchased to determine if the good should be considered a supply or equipment. If the per unit cost of an item is $1,000 or more, it must be coded as equipment. Agencies should consult DAS Asset Management Services to determine the requirements for tagging assets.

Expense Account Code Attributes

The majority of expense account codes have attributes assigned to them. Attributes are optional functionality in OAKS that can be used for various reasons.

Accounts Payable use attributes for 1099 reporting, workflow approval of vouchers and to identify Debit Voucher accounts.
Purchasing use attributes to identify types of purchases (e.g., vehicles, copiers, IT goods and services, printing services, personal services, and rent), and type of expenditure (good or service). Purchasing also uses it to identify purchases exempt from approvals or processes (e.g., exempt from Controlling Board Approval, exempt from Department of Administrative Services (DAS) review, and exempt from mass PO cancel).
General Ledger use attributes to help with Trial Balance reporting as well as Grants reporting.
Accounts Receivable use chartfield attributes to identify specific inter-agency transactions for an interface.

Multiple combinations are usually associated with expense account codes. However, attributes are not dynamic, meaning the reporting attribute will be tied to all of the transactions using the account code and the attributes cannot be changed transaction to transaction.

The following expense account code attributes are used in OAKS FIN:

Attribute	Displayed in OAKS	Attribute Description	Use
ADN	Y	Included in Auditor Distribution Reporting	Designates transactions included on report primarily used by auditors.
1099	M1	1099 Rent	Payments classified as rent; reported to IRS.
1099	M3	1099 Other	Payments classified as other; reported to IRS.
1099	M6	1099 Medical	Payments classified as medical; reported to IRS.
1099	M7	1099 Non-Employee Compensation	Payments classified as non-employee compensation; reported to IRS.
1099	M7LS	1099 Non-Employee Compensation (Legal Services)	Payments classified as non-employee compensation (legal services); reported to IRS.
1099	M	1099 Misc	Payments classified as miscellaneous; reported to IRS.
1099	I	1099 INT	Payments classified as interest; reported to IRS.
1099	S	1099 S	Payments classified as land sales; reported to IRS.
EOD	N	Exempt from EOD Reporting	Payment is not included in the population requiring MBE or EDGE spend.
EOD	AE	EDGE Architecture and Engineering	Not used on new account codes.
EOD	C	EDGE Construction	Payment for good is included in the population for EDGE spend but not MBE spend.
EOD	GS	EDGE Goods & Services	Payment is included in the populations requiring both MBE and EDGE spend.
EOD	IT	EDGE Information Technology Services	Payment for IT Services is included in the populations requiring both MBE and EDGE spend.
EOD	PS	EDGE Professional Services	Payment for Professional Services is included in the populations requiring both MBE and EDGE spend.
EOD	CS	EDGE Construction Services (MBE Exempt)	Payment for Construction Services is included in the population for EDGE spend but not MBE spend.
THINK	Y	YES	Used for reporting the “Think Ohio” spend.
OBM_REVIEW	Y	YES	Payments route to OBM State Accounting, voucher review for approval.
OBM_REVIEW	N	NO	Payments do not route to OBM State Accounting, voucher review for approval.
PURCHASE_TYPE	I	IT Goods and Services	Requires an OIT release and permit prior to purchase/payment. PO cannot be saved without R&P number entered on PO.
PURCHASE_TYPE	V	Vehicles	PO routes to DAS Fleet prior to approval.
PURCHASE_TYPE	C	Copiers	PO routes to DAS Printing prior to approval.
PURCHASE_TYPE	P	Printing Services	PO routes to DAS Printing prior to approval.
PURCHASE_TYPE	S	Personal Services	PO routes to OBM State Accounting, Financial Services, prior to approval.
PURCHASE_TYPE	R	Rent	Used for reporting purposes.
EXPEND_TYPE	G	Good	Denotes purchase as a good that applies to the agency’s direct purchasing authority.
EXPEND_TYPE	S	Service	Denotes purchase as a service that applies to the agency’s direct purchasing authority.
EXPEND_TYPE	E5	Exempt $2,500 Debit Voucher	No PO required.
EXPEND_TYPE	X	Exclude from mass PO cancel	POs are not required to be canceled in November of the following FY.
EXPEND_TYPE	D	DAS Except	Included on DAS Blanket Release & Permit annual letter.
EXPEND_TYPE	C	Controlling Board Exempt	Exempt from required $50,000 limit requiring Controlling Board approval. Does not count toward threshold spend.