| Accounting Principles |
Accounting principles are general rules and guidelines that entities must follow in order to accurately report their financial statements. |
| Accrual Accounting |
Accrual accounting is a method that records revenue when it is earned and records expenses when they are incurred, not when the cash is received. Different than cash accounting, this method provides a more realistic understanding of income and expenses and helps with long term projections. |
| Accrual Entry |
An entry for an expense or revenue incurred in a period for which no invoice or payment changed hands by the end of that period. |
| Accrual Voucher |
An accrual voucher is a KFS document used to post accrual, adjustment, and recode entries. |
| Adjusted Base Budget (BB) |
The adjusted base budget is defined as the initial July 1 budget load adjusted throughout the year through the use of base budget adjustments. The adjusted base budget is the basis for budget construction for the upcoming fiscal year. |
| Aging Report |
An accounts receivable aging report is a record that shows the unpaid invoice balances along with the duration for which they’ve been outstanding. |
| As of Date |
The as of date is the date specified in the parameters and shows the cut-off date of the information provided. |
| Assets |
Assets are defined as any resource of value that can be used to generate future economic value. |
| Balance Sheet |
A balance sheet, also known as the statement of financial position, is a financial statement that reflects the overall financial position of an organization at a specific period in time. |
| Cash Basis Method |
Accounting method which records revenues and expenses only when monies are exchanged. |
| Cash Flow Statement |
A cash flow statement, also known as statement of cash flows, is a financial statement that summarizes the amount of cash and cash equivalent entering and leaving an entity. |
| Cash Receipt |
Cash receipt is the collection of money (currency, coins, checks). A company’s receipts refers to the cash that the company received. |
| Clearing and Rotating Funds |
The clearing and rotating fund group is specific to IU and is used to record interim accounts that should be closed out (net to zero) at the end of the fiscal period. To post to this fund group, please reach out directly to the UCO cash accounting team prior to posting entries. |
| Constituent Reporting Unit (CRU) |
A defined segment (organization or grouping of organizations) within Indiana University that have revenues, expenses, or net assets over a predetermined threshold as defined by the Office of the University Controller closing procedures. |
| Contra Asset |
A contra asset object code is an offset to another asset code (i.e. accounts receivable or capital assets) and typically acts as a reserve to reduce the associated asset code. |
| Credit |
A credit is an accounting entry that either increases a liability or equity account, or decreases an asset or expense account. |
| Current Asset |
A current asset is an asset that is expected to be sold or consumed within twelve months. |
| Current Budget (CB) |
The current budget is loaded along with the base budget load on July 1 and adjustments through the use of current budget adjustments are reflected for the current year only. |
| Current Liability |
A current liability is an obligation that is expected to be settled within twelve months. |
| Debit |
A debit is an accounting entry that either increases an asset or expense account, or decreases a liability or equity account. |
| Deferral |
A deferral often refers to an amount that was paid or received, but the amount cannot be reported on the current income statement since it will be an expense or revenue of a future accounting period. In other words, the future amount is deferred to a balance sheet account until a later accounting period when it will be moved to the income statement. |
| Drill Down |
When available, allows users to further investigate a specific financial statement balance through linking of additional detailed reports and KFS. Drill down detail can go as far as the document reference in KFS, provided the user continues to click on the desired linked balance. |
| Fiscal Period |
A fiscal period at Indiana University is broken out into 12 separate periods based on months in the calendar year. Period one is equivalent to July during the fiscal year. |
| Fiscal Year |
A fiscal year at Indiana University spans from July 1st through June 30th of the subsequent calendar year. The last day of the fiscal year is June 30th. |
| Generally Accepted Accounting Principles (GAAP) |
US Generally Accepted Accounting Principles (US GAAP) is the combination of authoritative standards (requirements) and the commonly accepted ways of recording and reporting accounting information. |
| Governmental Accounting Standards Board (GASB) |
The organization responsible for establishing accounting and financial reporting standards for state and local governments and those entities that are funded by state and local government. |
| Income Statement |
An income statement, also known as the statement of revenues, expenses, and changes in net position, is a financial statement that summarizes the revenue streams, expense categories, and overall profitability of an entity. |
| Liability |
A liability is a debt or obligation that arises from past events. |
| Materiality |
Highlights any variance that meets the specified materiality threshold specifically for the income statement. Materiality is set at 10% of the associated revenue stream. |
| Monthly Budget (MB) |
Monthly budgets allow departments to spread their annual budget into 12 different buckets. This is important when entities have revenue and expense lines that are not earned or incurred evenly over the 12 months of the fiscal year. |
| Non-Current Asset |
Non-current assets are long-term assets that the organization expects to hold for longer than twelve months and cannot be readily converted into cash. |
| Non-Current Liability |
A non-current liability is an obligation resulting from a previous event that is not due within one year. Non-current liabilities are also known as long-term liabilities. |
| Non-Operating Expense |
A non-operating expense is a business expense that is not related to an organization’s core operations. Examples include, but are not limited to, interest expense and inventory write-offs. |
| Non-Routine |
An isolated transaction that will not recur on a regular basis. |
| Object Code |
An object code is used to organize and catalog financial data. An object code classifies a financial transaction as income, expense, asset, liability, or fund balance. |
| Object Consolidation |
An object consolidation is a grouping of object levels for reporting purposes. |
| Object Level |
An object level is a grouping of object codes for reporting purposes. |
| Prepaid Expense |
Prepaid expenses are future expenses that have been paid in advance. In other words, prepaid expenses are costs that have been paid but are not yet used up or have not yet expired. |
| Reportable Items |
Value of money or property received, or expected to be received at a future date, as a result of a gift from, or contract entered into with, a foreign source. Individuals paying tuition, room and board, and fees related to a student’s education are not generally considered reportable items, unless the individual is paying for multiple students and acting as an agent of a foreign source because they would not meet the threshold. |
| Routine |
Transactions that happen on a recurring basis. |
| Short-Term Investments |
Financial instruments, such as money market funds or certificates of deposit, that can easily be converted to cash usually within one year or less. |
| Source Documentation |
An agreement, contract or grant documentation, analysis conducted, calculations completed, emails, memos, receipts, etc. that supports the transaction. |
| Unearned Revenue |
Unearned revenue is a liability account that reports amounts received in advance of providing goods or services. When the goods or services are provided, this account balance is decreased and a revenue account is increased. |
