Accounting Questions

The accounting periods are:

• Period 1 is July.
• Period 2 is August.
• Period 3 is September.
• Period 4 is October.
• Period 5 is November.
• Period 6 is December.
• Period 7 is January.
• Period 8 is February.
• Period 9 is March.
• Period 10 is April.
• Period 11 is May.
• Period 12 is June.
• Period 998 is year-end adjusting entries for accounting services use only.
• Period 000 is carry-forward totals from one year to the next.

Fund descriptions:

• General Fund (11) - Western Michigan University operating fund. Expenses are primarily salaries, equipment, telecommunications, and supplies. Revenues include state appropriations and tuition, which are allocated to departments through a budget.
• Designated funds (23 and 24) - departmental self-supporting activity; funding source must be departmental activities, not general fund or grant fund supported. Fund 24's revenue is gift money transferred through the Foundation.
• Expendable restricted (21, 25-30, 50 and 59) - restrictions are placed on the use of funding. Fund 21 represents gifts used in the administration of scholarships/aid. Funds 25-30, 50 & 59 represent revenue obtained through grants and contracts for a specific purpose.
• Student loan (31) - accounts for short-term student loans. Revenue originates from various places and, once established, acts as a revolving loan fund.
• Annuity and life income (32) - houses irrevocable planned gifts from donors. The income from the gifted asset to the University is delayed until after the donor's (or surviving beneficiary's) death.
• Auxiliary activities (41–46) - maintained to account for revenue-producing, substantially self-supporting University activities that perform a service but are not themselves educational. Examples: athletics, health center, bookstore, Miller Auditorium, physical plant, housing.
• Agency (51 and 52) - fund held by the University on behalf of organizations associated with the University (ex: alumni accounts, student organizations).
• Foundations (54 and 56) - accounts for donations made to the University (54 = Western Michigan University Foundation; 56 = Paper Technology Foundation).
• Insurance and benefits (55) - houses employee retirement and insurance programs.
• Plant (61, 63, 64 and 65) - accounts for University physical properties and related indebtedness.

Only in specific circumstances:

• A specific expense has erroneously been charged to the wrong department. Then the expense can be moved between the two.
• Generally, fund 11 money must be spent on fund 11 expenditures; you wouldn’t transfer it to other funds for other purposes.

• All gifts must go through the Western Michigan University Foundation, in-kind and cash. The foundation transfers gifts to the departments in August and February.
• Gifts in-kind are gifts other than cash, such as goods or services.
• The donor designates the university department.
• Gifts to the University generally have a specific purpose and can only be used for that purpose.

• A seven digit number.
• A number that identifies your department.
• Is where departments post revenues and expenditures.

• Complete the Department Number Set Up form on the forms and documents page.
• For Department Administrator, please list the individual who will be responsible for the account activity and funding.
• Some departments receive financial reports from accounting services. The Add to Month End Report field indicates if your new department should be added to a report. If so, please list the name of the report(s) you’d like it added to. If you do not receive financial reports from Accounting Services, please disregard this field.
• Please send the completed form to accounting services. Fax: (269) 387-4297, mail stop 5207.

• Is a four digit number.
• Identifies revenue, expense, asset, liability and equity transactions.
• Is most commonly used by individual departments for revenue and expense transactions.

Account descriptions:

• 1xxx - Asset (Something the University owns that has economic value, tangible or intangible, cash, accounts receivable, or land.)
• 2xxx - Asset (Construction in process - fund 63 only.)
• 3xxx - Payroll expense.
• 4xxx - Other expense.
• 6xxx - Liability (What the University owes, accounts payable, and long-term debt.)
• 7xxx - Liability.
• 8xxx - Revenue.
• 9xxx - Fund balance.

A complete list of accounts can be found in GLOW under "Accounts."

A debit is a positive number and a credit is a negative number. Expenses generally have a debit balance and revenues generally have a credit balance.

Account used for equipment purchases:

• 4452 - Software - All software should be charged to this account regardless of cost.
• 4865 - Technical Initiatives. Computers and related hardware costing less than $5,000 that are not purchased with a procurement card or through the Technology Purchases website.
• 4997 - Internal Service Equipment less than $5,000 - Technology Purchases website purchases costing less than $5,000.
• 4481 - Office Supplies - Equipment costing less than $5,000.
• 4850 - Equipment equal to or more than $5,000 - Equipment costing at least $5,000.
• 8980 - Miscellaneous Income - Proceeds received from the sale of equipment.

Transfer/support account descriptions:

• Move or transfer money between funds and/or departments.
• Must be used together: debit to 4995 requires credit to 8995.
• One-sided transfer/support entry generates an error.
• Expenses remain in the account where they are incurred.
• Support shows as revenue in transfer/support account.
• 4995/8995 is used to transfer funds between departments.

Account 9200 is used only for carrying a balance from one year to the next. Please do not use 9200 when entering journal entries.