Fiscal Procedures
As a public institution, the University of Oregon is required to follow Generally Accepted Accounting Principles (GAAP) as established by the Governmental Accounting Standards Board (GASB), which include accrual accounting and fund accounting. Banner is the system of record for UO accounting transactions.
Accrual accounting requires revenue and expenses be recorded in the fiscal year and period in which they occur, regardless of when funds are received or disbursed. This ensures an accurate presentation of the university’s assets and liabilities and allows for informed budgeting and forecasting. Accounts receivable, prepaid expenses, payables, and unearned revenue are common accrual entries.
Fund accounting is a system used to track the sources and uses of financial resources. It ensures our financial statements show the origin of funding and that expenditures comply with legally or contractually required restrictions. Commonly used types of funds include the general fund, generated from tuition revenue and state appropriations; gift funds, provided from donors; and grants and contracts, awarded by federal and other granting agencies.
Fiscal Periods and Closing Procedures
Fiscal Year 25 Closing Calendar
Fiscal Year 26 Closing Calendar
The UO’s fiscal year runs from July 1 through June 30. It is divided into 12 fiscal periods plus period 14 for corrections and missed accruals. Periods close at 5:00pm on the dates listed in the closing calendar, usually the fifth business day of the following month. Period 14 opens after June’s close and remains available until late July.
Five fiscal years are typically open for transaction processing. This includes the remaining periods of the current year, the first six periods of the following year, and only period 1 of the next three years.
Fiscal periods stand alone as independent accounting segments and together form the fiscal year. Departments are expected to review their financial activity and enter all transactions before each month closes, using accruals when necessary. After the close of each month, incomplete transactions dated in closed periods are removed from the system. Before removal, users receive email notifications so they can complete or delete those transactions.
For information on fiscal year-end closing, please visit Year-End Close.
External Revenue, Internal Revenue, and Transfers
The University of Oregon generates many types of income, from both internal and external sources. In accordance with fund accounting, each type of external revenue must be recorded in the proper fund type - gift revenue in gift funds, tuition revenue in the general fund, grant revenue in grant funds, etc. In general, revenue stays in the fund where it is recorded and should not be moved across fund types.
External revenue is revenue a department generates from entities outside the UO. This may occur by charging customers for goods or services, or by receiving gifts and contributions. External sales and service revenue is recorded with account codes 06XXX and gifts are recorded with 036XX.
Internal revenue is revenue a department generates by charging another UO department for goods or services. Internal revenue is an exchange transaction, meaning each party receives something of approximate equal value. Examples include space rentals, administration fees, or resale of equipment. Internal revenue is recorded with account codes 09XXX or 79XXX in the ICC or General Fund.
Transfers are used to move cash between funds where there is not an exchange transaction. These are typically used for correcting a negative fund balance, providing support to a department without receiving anything in return, or correcting prior year transactions.
Additional Resources
Accrual Entries
Departments use general ledger account codes to record accrual entries, ensuring expenses and revenue are posted in the proper fiscal year.
More information can be found on the Operating Ledger and General Ledger webpage.
Accounts Receivable (Non-Student)
Accounts receivable reflects amounts owed to the UO by external customers. Departments use AR entries to recognize revenue in the fiscal period when products or services are provided. At year-end, departments with accounts receivable balances must submit a detailed list and aging report of amounts owed to Financial Services.
See Closing Procedures for more details.
To record revenue and receivable:
Debit — Department index — Account code A3103 Misc AR
Credit — Department index — Account code 06XXX Revenue
When payment is received, departments should use TWADEPO to reduce the receivable; revenue should not be recorded a second time:
Debit — CASH, CHEK, or CARD
Credit — Department index — Account code A3103 Misc AR
Department Deposits in Transit
Deposits in transit record payments departments have received but cannot deposit with Cashiers before the last business day of the month.
To record deposit in transit in the month the payment was received:
Debit — Department index — Account code A0951 Cash-Department Deposit in Transit
Credit — Department index — Account code Revenue, Unearned Revenue, AR, etc.
To make the physical deposit with Cashiers the following month, use TWADEPO:
Debit — CASH, CHEK, or CARD
Credit — Department index — Account code A0951 Cash-Department Deposit in Transit
Prepaid Expense
Prepaid expenses represent amounts paid by departments for goods or services to be received in a future fiscal year. Purchases of $5,000 or greater must be allocated to the appropriate prepaid expense account code and amortized in the correct fiscal year. Purchases under $5,000 are expensed in the current year and not amortized.
Invoices with tax-reportable expense account codes must be coded to their expense account code. Two JVs are then required, one to reduce the expense and record a prepaid expense. The second records expenses in the correct year and eliminates the prepaid expense.
Current year JV: For amounts of $5,000 or greater posted as expense that are prepaid expenses for future periods or fiscal years:
Debit — Department index — Account code A50XX Prepaid Expense
Credit — Department index — Account code Expense Account Code
Future period JV: To remove the prepaid and recognize the expense:
Debit — Department index — Account code Expense Account Code
Credit — Department index — Account code A50XX Prepaid Expense
Common prepaid expense account codes:
A5019 — Prepaid Services & Supplies
A5020 — Prepaid Travel
A5021 — Prepaid Subscriptions/Memberships
A5023 — Prepaid Software Expenditures
A5030 — Prepaid Misc Expense
Accounts Receivable (Non-Student)
Department Deposits in Transit
Prepaid Expense
Payable
Payables represent amounts owed to vendors for goods or services received but not yet paid for, ensuring expenses are recorded in the correct fiscal year. Departments must record a payable for goods or services received by June 30 when an invoice has not been received before fiscal period 14 closes.
To record the expense and payable in the period the goods or services were received:
Debit — Department index — Account code Expense Account Code
Credit — Department index — Account code B0190 Received Items Payable
To reverse the accrual in the period in which the invoice was paid:
Debit — Department index — Account code B0190 Received Items Payable
Credit — Department index — Account code Expense Account Code
Unearned Revenue
Unearned revenue is payments UO has received for goods or services it will provide in a future period.
To deposit payments with Cashiers through TWADEPO:
Debit — CASH, CHEK, or CARD
Credit — Department index — Account code B5802 Unearned Revenue
Future period JV:
Debit — Department index — Account code B5802 Unearned Revenue
Credit — Department index — Account code Revenue Account Code
Undistributed Revenue
Undistributed revenue refers to amounts deposited into the general ledger account code B5801 – Undistributed Revenue that are pending distribution. The funds must be allocated to the appropriate department index and account codes as soon as possible. Account code B5801 should not carry a balance at fiscal year-end.
To deposit funds into B5801 with Cashiers through TWADEPO:
Debit — CASH, CHEK, or CARD
Credit — Department index — Account code B5801 Undistributed Revenue
To distribute revenue from B5801 to the appropriate department and account code:
Debit — Index — Account code B5801 Undistributed Revenue
Credit — Department index — Account code Revenue Account Code
Payable
Unearned Revenue
Undistributed Revenue
Gifts
A gift is a contribution of cash or property from a donor with no expectation of anything in return. All gifts must be recorded in an appropriate gift fund and are to be reported to Business Affairs by following the Gifts of Cash or Property procedures.
Lease and Software Accounting
The UO follows GASB requirements for both lease and software accounting. Lease accounting is governed by GASB Statement 87, while subscription-based IT arrangements (SBITAs) are governed by GASB Statement 96. Departments must report qualifying contracts to Business Affairs, which records related assets and liabilities, reconciles activity, and ensures proper account coding.
More information can be found on the Lease Accounting and the Software Accounting webpages.
Service Centers and Auxiliaries
Service Centers and Auxiliaries are self-supporting units that provide service to campus departments, students, staff, or the public. These funds are required to maintain reserves for equipment and building expenses.
For more information see Service Centers and Auxiliaries.